Sundaram Mutual launches tax savings funds

Sundaram Mutual has launched two new tax savings funds that propose to adopt an investor-friendly dividend policy to ensure that liquidity is not restricted for a three-year horizon.
The New Fund Offerings (NFOs) are Sundaram Long Term Tax Advantage Fund (Series I) and Sundaram Top 100 (Series IV). The first one, which aims to invest 80 to 100 per cent of the scheme's assets under management (AUMs) in equity and its related instruments, will have a multi-cap diversified 40-45 stock portfolio, a company release said here today.
The second plan, which aims to invest 95 to 100 per cent of the scheme's AUMs in equity securities, will have a large and mid-cap diversified 40-45 stock portfolio.

Sundaram Long Term Tax, which has three-year lock-in period, will open on December 18 and close on March 20, whereas Sundaram Top 100, a closed-end NFO, will open on December 18 and close on January 16, the release added.
"Government has created vast potential advantages for manufacturing and export sectors that will steadfastly create job opportunities, establish India as an export hub, enhance the GDP growth and help in narrowing the fiscal deficit.
"With these benefits arising out of the economic initiatives coupled with positive momentum in the equity markets Sundaram Long Term Tax Advantage and Sundaram Top 100 are set to offer immense investment opportunity with added tax savings advantage to the investors," Sundaram Mutual Deputy Chief Executive Officer Sunil Subramaniam said.

These NFOs propose to adopt an investor-friendly dividend policy (surpluses permitting) to ensure liquidity is not restricted for a three-year horizon, the release said.