Sundaram Large Cap mutual fund review: Merged scheme, new stewards; should you stay invested?

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
30 JULY 2002
CATEGORY

EQUITY
TYPE
LARGE CAP
AUM*
Rs.2,976 crore
BENCHMARK
NIFTY 100 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.15.96
IDCW
Rs.14.03
MINIMUM INVESTMENT
Rs.100
MINIMUM SIP AMOUNT
Rs.100
EXPENSE RATIO* (%)
1.91
EXIT LOAD
For units in excess of 25% of the investment,1% will be charged for redemption within 365 days

*AS ON 31 MAY 2023
**AS ON 27 JUNE 2023

FUND MANAGER
RAVI GOPALAKRISHNAN
(above) / SUDHIR KEDIA
1 YEAR EACH

Recent portfolio changes
New Entrants
Kotak Mahindra Bank, Tata Steel (Apr)
Complete Exits
Adani Ports and Special Economic Zone, Ambuja Cements, Oberoi Realty, Polycab India (Mar); Crompton Greaves Consumer Electricals (May)
Increasing allocation
ITC, Sona BLW Precision Forgings (Mar); Asian Paints, Infosys, ITC (Apr); Kotak Mahindra Bank (May)

Should you buy?
This fund was born recently from the merger of the long-running Sundaram Select Focus and the newer Sundaram Bluechip Fund. The former ran a focused portfolio within the large-cap universe, while the latter plied a more diversified approach. The renamed fund adopts the latter’s diversified stance, with a clear preference for growth style. Despite this, the fund retains outsized positions in its top bets, making it skewed towards the top-end of the portfolio. Through constant changes in style and leadership over the years, it has exhibited inconsistent showing. The last few years have also been underwhelming, but new stewards will need time to establish credentials. Investors may remain with more proven offerings in this basket.

(Source: Value Research)