Sundaram Mutual Fund has announced the launch of their new fund offer (NFO), the Sundaram Multi-Factor Fund, an open-ended equity scheme that follows a multi-factor based investment strategy.
The new fund offer or NFO of the fund will open for subscription on July 2 and will close on July 16. The scheme reopens for ongoing subscription or redemption from July 28.
The investment objective of the scheme is to provide long-term capital growth to its unitholders by following a multi factor-based investment strategy.
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The minimum investment amount is Rs 100 and any amount thereafter; for subsequent purchase is Rs 100 and any amount thereafter. For monthly SIP, the amount is Rs 100.
An exit load of 1% of the applicable NAV will be there if any redemptions, switch or withdrawals by way of SWP would be subject to an exit load within 365 days from the date of allotment and the exit load will be nil,if the units are redeemed after 365 days from the date of allotment of units.
The fund is suitable for investors who are seeking long term capital growth and want investment in equity and equity related instruments selected based on the Multi-Factor Model.
The Sundaram Multi-Factor Fund would follow a rules-based strategy with a multi-factor approach consisting of Quality, Growth, Momentum, Value and Size based stock selection factors.
The fund’s structured investing approach, to capture market opportunities, would offer diversification across multiple factors and capture returns efficiently while offering superior risk-adjusted returns across market cycles to the investors.
The fund will allocate 80-100% in equity and equity related instruments selected based on a Multi-Factor quantitative model, 0-20% in fixed income and money market instruments, 0-20% in Debt and Money Market Securities (including Tri Party Repo), and 0-10% in investment in REITs/InVITs.
“The Sundaram Multi-factor fund, by converting decision making rules of a good active manager into a set of repeatable rules, aims to be consistent in its performance. Further, the diversification across multiple Factors and intuitive logic of rules followed by the Sundaram Multi-factor fund makes it efficient and transparent for Investors,” said Anand Radhakrishnan, Managing Director, Sundaram Asset Management Company.
Also Read | Confused about investment in stocks, gold & silver? Simplify it with multi-asset mutual funds!
The fund managers’ strategy will be to invest in the top twenty five (25) stocks selected within each factor - Momentum, Value, Quality and Growth. The Sundaram Multi-Factor Fund’s investment universe would comprise of top 250 companies with stock selection ranked within each factor. Through periodic quarterly rebalancing and consistent application of a rules- based approach, the fund aims to deliver superior risk-adjusted returns.
The fund will be managed by Rohit Seksaria & Bharath S (Equity Portion) – Dwijendra Srivastava & Sandeep Agarwal (Fixed Income) and the performance of the scheme will be benchmarked against the BSE 200 TRI.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The new fund offer or NFO of the fund will open for subscription on July 2 and will close on July 16. The scheme reopens for ongoing subscription or redemption from July 28.
The investment objective of the scheme is to provide long-term capital growth to its unitholders by following a multi factor-based investment strategy.
Also Read | Beyond JioBlackRock: Eight other mutual fund NFOs open for subscription this week
The minimum investment amount is Rs 100 and any amount thereafter; for subsequent purchase is Rs 100 and any amount thereafter. For monthly SIP, the amount is Rs 100.
An exit load of 1% of the applicable NAV will be there if any redemptions, switch or withdrawals by way of SWP would be subject to an exit load within 365 days from the date of allotment and the exit load will be nil,if the units are redeemed after 365 days from the date of allotment of units.
The fund is suitable for investors who are seeking long term capital growth and want investment in equity and equity related instruments selected based on the Multi-Factor Model.
The Sundaram Multi-Factor Fund would follow a rules-based strategy with a multi-factor approach consisting of Quality, Growth, Momentum, Value and Size based stock selection factors.
The fund’s structured investing approach, to capture market opportunities, would offer diversification across multiple factors and capture returns efficiently while offering superior risk-adjusted returns across market cycles to the investors.
The fund will allocate 80-100% in equity and equity related instruments selected based on a Multi-Factor quantitative model, 0-20% in fixed income and money market instruments, 0-20% in Debt and Money Market Securities (including Tri Party Repo), and 0-10% in investment in REITs/InVITs.
“The Sundaram Multi-factor fund, by converting decision making rules of a good active manager into a set of repeatable rules, aims to be consistent in its performance. Further, the diversification across multiple Factors and intuitive logic of rules followed by the Sundaram Multi-factor fund makes it efficient and transparent for Investors,” said Anand Radhakrishnan, Managing Director, Sundaram Asset Management Company.
Also Read | Confused about investment in stocks, gold & silver? Simplify it with multi-asset mutual funds!
The fund managers’ strategy will be to invest in the top twenty five (25) stocks selected within each factor - Momentum, Value, Quality and Growth. The Sundaram Multi-Factor Fund’s investment universe would comprise of top 250 companies with stock selection ranked within each factor. Through periodic quarterly rebalancing and consistent application of a rules- based approach, the fund aims to deliver superior risk-adjusted returns.
The fund will be managed by Rohit Seksaria & Bharath S (Equity Portion) – Dwijendra Srivastava & Sandeep Agarwal (Fixed Income) and the performance of the scheme will be benchmarked against the BSE 200 TRI.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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