Sundaram Mutual Fund launches new close-ended equity scheme

MUMBAI: Sundaram Mutual Fund has launched ' Sundaram Select Micro Cap - Series I', which is a five-year close-ended equity scheme.

The new offer, which opened for subscription yesterday, will close on December 30.

"There is a deep value hidden in the small and micro cap space. With our research-based approach, we intend to unearth these stocks for our investors through this fund offer," Sundaram Mutual's Managing Director Harsha Viji told reporters here.

The new scheme would mostly invest in domestic subsidiaries of multinational companies in the micro cap space, the company said.

"There are around 1200 micro cap stocks with a total market capitalisation of around Rs 4 lakh crore. We will pick stocks which are domestic subsidiaries of multinational companies in this space, as we feel they are reasonably valued at this point of time.

"This would provide significant upside as domestic growth picks up," the company's Director for Sales and Global Operations Sunil Subramaniam said, claiming that micro caps are likely to outperform the large cap space in the coming days.

However, Subramaniam, declined to give the amount which the fund is likely to raise from the new fund offer.