Sundaram MF launches Sundaram Select Small Cap Series - III

Sundaram Mutual Fund has launched a new fund as Sundaram Select Small Cap Series - III, a close-ended equity scheme. The investment objective of the scheme is to seek capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as small-caps. The fund will invest in stocks that are equal to or lower than the 101st stock in the NSE (after sorting the stocks by market-cap in descending order).

The new fund offer (NFO) opens for subscription from March 18 to March 26, 2015. The new fund offer price for the scheme is Rs 10 per unit. The tenure of the scheme is 5 years from the date of allotment.

The scheme offers regular plan and direct plan with growth and dividend (payout) options under both plans.

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.

The entry load is nil, while exit load is not applicable.

The scheme shall invest 65-100% in equity & equity related securities of companies of small-caps, up to 35% in other equity with high risk profile and up to 35% in Fixed Income and money market securities with low to medium risk profile. Other equity refers to Large-cap and Mid-cap stocks.

The benchmark Index for the scheme is S&P BSE Small Cap Index.

The fund managers of the scheme will be S Krishnakumar (Equity portion) and Dwijendra Srivastava (Fixed- Income).