Key Takeaways
- • Sundaram Mutual Fund has launched the Select Equity Ex-Top 100 Long Short Fund, its entry into India's SIF (Specialised Investment Fund) space, through its Select platform.
- • The open-ended fund invests in companies ranked 101st to 750th by market capitalization, with flexibility for limited short exposure via derivatives of Ex-Top 100 stocks, capped at 25%.
- • The new fund offer (NFO) is open for subscription and closes November 4; the minimum application is Rs 10 lakh, or Rs 1 lakh for accredited investors.
- • Madanagopal Ramu is the fund manager, targeting a portfolio of 25 to 40 stocks benchmarked to the Nifty MidSmallcap 400 TRI.
Summary
Sundaram Mutual Fund has announced the launch of the Select Equity Ex-Top 100 Long Short Fund, according to an Economic Times report, marking the asset manager's entry into the SIF segment. The fund is an open-ended equity strategy that invests in equity and equity-related instruments, with the flexibility to include limited short exposure through derivative instruments of Ex-Top 100 stocks. The stated investment objective is long-term capital appreciation.
The investment universe comprises companies ranked 101st to 750th by market capitalization, predominantly high-growth mid- and small-cap companies. The strategy uses a bottom-up approach to build a portfolio of 25 to 40 stocks drawn from the mid, small and beyond-500 universe. The fund intends to target structural themes such as mega trends, emerging leaders in manufacturing, premiumisation and technology platforms. Short positions may be taken either to hedge or to seek additional returns, with short exposure through unhedged derivative positions capped at 25%.
The new fund offer is open for subscription and will close on November 4. The minimum application amount is Rs 10 lakh, in multiples of Re 1 thereafter, while the minimum for accredited investors is Rs 1 lakh. Madanagopal Ramu will serve as fund manager, and performance will be benchmarked against the Nifty MidSmallcap 400 TRI.
Anand Radhakrishnan, Managing Director of Sundaram Asset Management Company, said India's growth drivers, including manufacturing, technology, urban consumption and financial inclusion, could underpin the next phase of growth, and that the fund is designed to identify companies positioned to benefit from these structural shifts. The fund is suitable for investors seeking long-term capital appreciation who are comfortable with the flexibility of limited derivative-based short exposure.
The investment universe comprises companies ranked 101st to 750th by market capitalization, predominantly high-growth mid- and small-cap companies. The strategy uses a bottom-up approach to build a portfolio of 25 to 40 stocks drawn from the mid, small and beyond-500 universe. The fund intends to target structural themes such as mega trends, emerging leaders in manufacturing, premiumisation and technology platforms. Short positions may be taken either to hedge or to seek additional returns, with short exposure through unhedged derivative positions capped at 25%.
The new fund offer is open for subscription and will close on November 4. The minimum application amount is Rs 10 lakh, in multiples of Re 1 thereafter, while the minimum for accredited investors is Rs 1 lakh. Madanagopal Ramu will serve as fund manager, and performance will be benchmarked against the Nifty MidSmallcap 400 TRI.
Anand Radhakrishnan, Managing Director of Sundaram Asset Management Company, said India's growth drivers, including manufacturing, technology, urban consumption and financial inclusion, could underpin the next phase of growth, and that the fund is designed to identify companies positioned to benefit from these structural shifts. The fund is suitable for investors seeking long-term capital appreciation who are comfortable with the flexibility of limited derivative-based short exposure.
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