Sundaram Mutual Fund to launch Nifty 100 Equal Weight Fund

To target the provident funds segment, Sundaram Mutual Fund with its current AUM at Rs 29,000 crore is set to launch an open-ended Nifty 100 Equal Weight Fund this month, a top company official said.
The company has also lined up four new products for launch in the next few months.
"We will be launching the open-ended Nifty 100 Equal Weight Fund on December 26 and the new fund offer will close on January 9, to reopen on January 14. The fund is targeted at PF Trust Funds," Sundaram Mutual chief executive Sunil Subramaniam told PTI here today.
"Sundaram Mutual is among the first to launch this equity fund in the domestic market. Globally such kind of funds are quite popular, but we don't have many of such funds in the country," he said.

About the performance of general index funds in the country, he said, "In India the size of general index funds, also known as normal passive funds, has increased to Rs 24,000 crore as of September 2016 from Rs 2,300 crore in March 2013."
The fund category is expected to grow much more as now pension and provident funds are permitted to invest in equity, he said.

The Chennai-based fund house has also lined up four new funds by the fiscal-end which includes Micro Cap funds, Top-100 Funds under Rajiv Gandhi Equity Saving Scheme and close-ended Value Funds, Subramaniam said.
He said the company is planning to launch by February a close-ended Value Fund. The fund will invest in turnaround stories within next 2-3 years.

The company had launched long-term Micro-cap tax advantage fund in September, which was closed in November.
Talking about this fund, Subramaniam said "we have already mopped up Rs 114 crore through this fund. The company has already launched the next fund in this series.
"Now, the company has also launched close-ended Micro-cap Series-II fund on December 8 to close on December 22 from which we are expecting to collect more than Rs 50 crore."
DSP Blackrock already has a small and Micro-cap Fund which is open-ended.