Carrying over 20 years of experience in fund management, Sundaram Asset Management Company has been strengthening its roots in the mutual fund industry by gaining the trust of investors. It delivers multifarious investment solutions according to the various investment objectives of the investors. Among all those products, the one which is catching the attraction of most investors and to-be-investors with its consistent Sundaram Select Midcap Fund g performance. As the name suggests, it belongs to the midcap space of mutual funds. It aims to attain monetary growth by investing in equity and equity related securities of mid and small-cap companies. It has defined 'mid-cap' as a stock whose market cap should not exceed the market cap of the 50th stock listed with the NSE.
Fund Manager and the Investment Strategy
The fund is managed by S. Krishna Kumar since November 2012, who is a B.Tech from National Institute of Technology, Trichy and an MBA from LIBA Chennai. Prior to joining this AMC, he has worked with Anush Shares and Securities. He is an experienced and capable fund manager who has acquired an expertise in managing mid-cap funds and invests principally in sound stocks that have the potential of growth in future, good pricing power, and stable cash flows. Mr. Kumar is highly conscious about stock valuation and invests in the stocks with above average qualities at a reasonable price. The in-house research and investment team implements a bottom-up approach for stock selection while adhering to the ‘buy and hold’ philosophy. Mr. Kumar has got a deep knowledge about the companies and their background, and he buys the stocks of only those quality companies which possess higher valuations if long-term growth prospectus is taken into account. There had been a sudden modification in the structuring of the investment team as they have now been allocated the roles that reflect their strength areas.
Past Performance Overview
The fund was floated in the mid of the year 2002, and since then it has delivered 28.63% average annual return to its investors, hence becoming an exemplary of success among its peers. Its NAV has risen to Rs.525 as on April 19, 2018, which shows its worth in the market. To keep track of its growth trajectory, its past years’ returns are compared to that of its benchmark, i.e., S&P BSE Mid-cap. Let us have a look at its calendar year returns.
Source: MySIPonline Research Desk
The major years when the fund underwent the hard test of market downfall were 2008 and 2011. It did incur huge losses during those years to its investors, but still did not underperform its benchmark. In 2009, it did set a new standard for itself by proffering annual return of 114.63%. And if we keep aside fund’s last year’s performance, it has almost every time beaten its benchmark, hence becoming a consistent performer. Although it gave high exposure to large-cap funds last year, it continues to remain true to its mandate and invests maximum part in mid and small-cap stocks. Based on its performance and investment strategy, it has been awarded analyst rating of Bronze by Morningstar.
Who Can Invest?
Those investors who are looking forward to investing in mid-cap funds, and can stomach moderately high risks can invest in this fund.
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