This small cap mutual fund gave 32% returns in three years; should you invest?

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.

SUNDARAM SMALL CAP
BASIC FACTS
DATE OF LAUNCH
15 FEBRUARY 2005
CATEGORY

EQUITY
TYPE
SMALL CAP
AUM*
Rs.2,878 crore
BENCHMARK
NIFTY SMALLCAP 250
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.216.76
IDCW**
Rs.31.93
MINIMUM INVESTMENT
Rs.100

MINIMUM SIP AMOUNT
Rs.100

EXPENSE RATIO# (%)
1.97
EXIT LOAD
For units in excess of 25% of the investment, 1% will be charged for redemption within 365 days.

*AS ON 30 NOV 2023
**AS ON 2 JAN 2024
#AS ON 30 NOV 2023

FUND MANAGER
ROHIT SEKSARIA / RAVI GOPALAKRISHNAN (IN PIC)
1 YEAR, 1 MONTH / 1 YEAR, 11 MONTHS

Recent portfolio changes
New entrants
Angel One, ICICI Bank (Oct),Aster DM Healthcare (Nov).
Complete exits
Canara Bank (Oct). ICICI Securities, Metro Brands, MTAR Technologies,SBFC Finance (Nov).

Should You Buy
Earlier known as Sundaram S.M.I.L.E, running both small- and mid-cap exposure, this fund adopted the small-cap mandate in 2018. The current allocation to large caps is due to the expected volatility over the short term. It mainly invests in attractively valued high-growth stocks. It aims to deliver alpha from both sectoral bets and stock picking. Its portfolio is currently aligned to economic growth, especially in the manufacturing segment. To mitigate risk, the portfolio is heavily diversified, with modest positions in its top bets. The fund boasts an impressive long-term track record, but has faltered in recent years. The new fund managers at its helm will need time to prove execution capabilities.