Sundaram Business Cycle Fund will invest a minimum of 80% in equity and related instruments chosen based on the business cycle. The fund can invest 0-20% in other equity and related instruments, debt and money market securities, and 0-10% in units of REITs and InvITs.
Sundaram Mutual has launched a new fund offer (NFO), Sundaram Business Cycle Fund, an open-ended equity scheme following a business cycles-based investing theme.
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“Themes are powerful drivers of economic change, capable of transforming the way we live and work. Participating across them during their up-cycle can lead to substantial growth and long-term benefits,” Sundaram Mutual said in a statement.
Speaking on the launch of Sundaram Business Cycle Fund, Sunil Subramaniam, Managing Director, Sundaram Mutual said, “Themes create business cycles, which in turn create significant investment and growth opportunities across sectors. They are driven by broader macroeconomic trends such as technology and innovation, government policy and spending, urbanization, formalization, premiumization, etc, and can outperform broader markets. Our fund will follow a dynamic, thematic approach to identify and capitalize on 4-5 emerging medium- to long-term mega global and local trends at inflexion points across sectors.”
Sundaram Mutual CEO Anand Radhakrishnan said, “Sundaram Business Cycle Fund will invest in a portfolio of 35-45 stocks across sectors and market capitalization. The fund will remain benchmark, market cap, and sector agnostic, allowing us to focus on high potential opportunities to harness key themes. The dynamic nature of the fund alleviates allocation risk, giving investors focused exposure to favourable themes and an opportunity to participate in transformational trends shaping the future.”
Sundaram Business Cycle Fund will invest a minimum of 80% in equity and related instruments chosen based on the business cycle. The fund can invest 0-20% in other equity and related instruments, debt and money market securities, and 0-10% in units of REITs and InvITs.
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The equity portion of the fund will be managed by Ratish B Varier and Bharath S, fixed income portion by Dwijendra Srivastava and Sandeep Agarwal, and Pathanjali Srinivasan for Overseas Investments. The benchmark chosen for Sundaram Business Cycle Fund is the Nifty 500 TRI.
The New Fund Offer (NFO) opens for subscription on June 5, 2024, and closes on June 19, 2024. The scheme reopens for ongoing subscription and redemption from July 1, 2024.
