Sundaram Mutual launches Sundaram Services Fund

Sundaram Mutual has launched Sundaram Services Fund, an open-ended equity scheme investing in Indian services sector. Sundaram Services Fund, the New Fund Offer (NFO), aims to invest between 80 to 100 percent, predominantly in equity and equity related instruments of, services sector of the Indian economy.

The services sector essentially comprises 15 distinct sub-sectors across transportation and logistics, healthcare, retail, BPM, media and entertainment, hospitality and tourism, online and financial services, fitness, education, staffing, wealth management, aviation, architecture, legal and design services.

The New Fund Offer opened for the subscription on August 29 and will close on September 12. The scheme reopens for ongoing subscription or redemption from September 26.


“Sundaram Services Fund is an opportunity to invest in a sector representing 54 per cent of the Indian economy that also happens to be among the world's fastest growing, at 7.6 per cent, in 2018. The gap between Services share of the economy at 54% and of the market capitalisation at only 35% implies huge potential for the future,” says Sunil Subramaniam, Managing Director and CEO, Sundaram Mutual.

The fund managers’ strategy will be to invest in a multicap portfolio of aggressive small caps, midcaps and defensive largecaps, in existing listed universe of 193 stocks identified with marketcap of 40 lakh crore, and potential new listings in new age services.
Such new age businesses have garnered PE investments in excess of Rs 1.7 lakh crores over the last five years.

The scheme will be managed by S. Krishna Kumar, CIO-Equity, as well as equity fund managers, Rahul Baijal and Rohit Seksaria. The performance of the scheme will be benchmarked against S&P BSE 200.

Sundaram Asset Management Company commenced business in 1996. It manages assets under management of about Rs 37,477 crore as on July 31, 2018.