3 Sundaram Plans Raise Rs 116 Crore

The Chennai-based Sundaram Mutual, which manages over Rs 770 crore in net assets, today said it had collected over Rs 116 crore from the initial offer of its three open-ended funds. Of the three 'innovative' open-ended funds, two are equity funds and one debt oriented.

Speaking at a press conference here today, T P Raman, managing director, Sundaram Newton Asset Management Company, said that the company could collect over Rs 38 crore in equity funds was very significant.

"Given the market conditions, it is a significant achievement and vindicates our understanding of the market's appetite for such sharply defined innovative products," Raman said.

The three funds, Sundaram Select Focus, Sundaram Select Midcap, and Sundaram Income Plus, have between them collected Rs 116 crore with the Sundaram Income Plus garnering close to Rs 77 crore.

The debt fund will invest only in AA securities to provide a higher yield to investors, Raman said. The corpus of Rs 77 crore is spread across 5,000 investors.

Sundaram Select Focus will invest in very few liquid large market cap stocks and will seek to provide capital appreciation.

The portfolio will at most times comprise 15 stocks and is marketed by the company as ideal for the experienced investor, who wants fast capital appreciation through definite entry and exit strategies.

The mid-cap fund is a diversified equity fund focusing on mid-cap stocks and is expected to give better returns in the medium term.