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As the mutual fund market is gaining popularity with time, new investors are looking all over the internet for good investment opportunities. Well, if you are reading this post, then you are in luck because in this post we are going to talk about one such great scheme, and that scheme is Sundaram Small Cap Fund. So let’s have a look at what makes this scheme a good investment option for future.
About the Fund
Previously known as Sundaram S.M.I.L.E Fund, the Sundaram Small Cap Growth Fund was launched on Feb 15, 2005, under the equity small-cap category, with an objective to provide investors with long-term capital appreciation by investing in a diversity of small-cap equities. Currently, the Sundaram Small Cap Fund NAV is Rs 87.80 (as on Jun 28, 2018) and is managing an asset size of Rs 1305 crore (as on May 31, 2018). This scheme has an expense ratio of 2.55% (as on May 31, 2018) and an exit load of 1% for 365 days. The Sundaram Smile Fund is currently being managed by Mr. Krishna Kumar. He has been a part of Sundaram Mutual Fund AMC since 2004 and has experience of more than 13 years in the capital market.
Portfolio Distribution of Sundaram Small Cap Fund
Sundaram Small Cap Fund, being an equity scheme, has a major portion (around 98% of total assets) of its investment in stocks. The fund invests only in small cap and mid cap equities, and have a portfolio with 80.05% small caps stocks, and 19.95% mid-cap stocks. As for sector allocation, the construction sector is the most favored one, with over 26.95% of investment. Other top sectors that the fund invests in are engineering, services, automobile, finance, and FMCG. The top holdings of the Sundaram Small Cap Fund include companies like Rane Holdings, Navin Fluorine International, V-Gaurd Industries, Heritage Foods and other popular companies. For a detailed portfolio of this scheme, you can visit MySIPonline.
Past Performance & Risk Measures
This scheme has shown some really good growth over the years. The returns that it has given in the 1, 3, 5, and 10 years are -7.51%, 8.99%, 26.92%, and 15.61%, respectively (as on Jun 28, 2018). As we can see that there is a great drop in the 1-year returns, but the scheme has performed really well in the longer time frames. This fund faced a major drop between Dec 04, 2007, and Dec 03, 2008, which it finally recovered from in Mar 2009 by providing some over the top returns. As for the risk factor, the risk associated with the scheme is pretty high as the scheme invests mainly in small-cap companies. So a drop can be seen during the volatility in the stock market, but investors don’t have to worry as the scheme has shown that it is capable of recovery in the past years.
In the above post, we have discussed all the things that you need to know about Sundaram Small Cap Fund. Using this information you can contemplate whether this scheme suits your investment appetite or not and can make decisions accordingly. If you are looking for investment in this scheme or any other mutual fund scheme, then you can visit MySIPonline for easy and hassle-free investments and can also enjoy expert guidance free of cost.