Sundaram Mutual's bluechip fund NFO mobilises over Rs 650 cr despite Covid

Sundaram Mutual’s Sundaram Bluechip Fund New Fund Offering which was open from September 17 to October 01, 2020 has collected over Rs 650 crore  from over 46,000 customers spread across 562 cities.

Sundaram Bluechip Fund is an open-ended equity scheme predominantly investing in large cap blue chip stocks.

Despite the challenges of the Covid-19 pandemic and the lockdown, this collection figure is a significant increase over those of the previous two NFOs in the last one year (Sundaram Equity Fund – Rs 358.95 crore in September 19 and Sundaram Balanced Advantage Fund Rs 485.12crore in March 20).

The success was partly achieved by Sundaram Mutual adopting a unique digital-first approach to the marketing and investment execution process. The company leveraged its strong distribution franchise of 35,000 MFDs. A virtual RM (relationship model) was also piloted during this NFO to help distributors and customers transact with remote guidance, said the company.

Sunil Subramaniam, Managing Director, Sundaram Mutual said, “The response to the Sundaram Bluechip NFO was overwhelming in these challenging times! 60% of the applications received through the Digital mode has been a strong validation of the Digital First approach adopted by us. Sundaram Mutual has always been retail-focussed in its distributor and customer approach.”

Sundaram Bluechip Fund will be managed by Rahul Baijal – Senior Fund Manager – Equity and S. Krishnakumar, CIO - Equity. The benchmark chosen is the Nifty 100 TRI Index.

The fund reopens for subscription on October 14, 2020.

Sundaram Asset Management Company has assets under management of about Rs 36,497 crore as on September 30, 2020.