The thematic equity mutual fund will invest in a portfolio of 35-45 stocks across sectors and market capitalisation to focus on high potential opportunities to harness key themes. The new fund offer will remain open till June 19, 2024. The minimum investment amount is Rs 100
Sundaram Mutual Fund on June 5, 2024 launched the Sundaram Business Cycle Fund. The equity thematic fund will follow the benchmark Nifty 500 TRI. The fund will follow a thematic approach to identify and capitalise on 4-5 emerging medium- to long-term global and local trends at inflexion points across sectors.
The new fund offer (NFO) opened for subscription on June 5, 2024, and will close on June 19, 2024. The scheme will then reopen for ongoing subscription and redemption from July 1, 2024. The minimum application amount for lump sum investment is Rs 100 and in multiples of Re. 1 thereafter.
For systematic investment plan (SIP), the minimum investment is Rs 100 for monthly instalments. For redemption or withdrawal by way of systematic withdrawal plans (SWPs) within 365 days from the date of allotment, an exit load of 1 per cent of the net asset value (NAV) will be applicable.
Sundaram Business Cycle Fund will invest in a portfolio of 35-45 stocks across sectors and market capitalisation to focus on high potential opportunities to harness key themes.
The fund will invest a minimum of 80 per cent in equity and related instruments chosen on the basis of their business cycle. The fund can invest up to 20 per cent in other equity and related instruments, debt and money market securities, or up to 10 per cent in units of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
Business cycle thematic funds typically strategize their investments based on phases of economic cycles. In simple words, during periods of economic expansion, they invest in sectors that have historically outperformed other sectors in such boom phases. If the economy is in a contraction phase, they will shift their investments to resilient sectors.
Sundaram Mutual Fund said that business cycle theme-based stocks have the potential to give substantial growth and long-term benefits during their up-cycle.
Sunil Subramaniam, managing director, Sundaram Mutual Fund said, “Themes create business cycles, which, in turn, create significant investment and growth opportunities across sectors. They are driven by broader macroeconomic trends, such as technology and innovation, government policy and spending, urbanisation, formalisation, premiumisation, etc., and can outperform broader markets.”