If your goal is to grow your riches by betting on a small-cap fund, then Sundaram S.M.I.L.E. Fund is such small-cap scheme, which has created a lot of buzz in the market. The fund was launched in the year 2005 and since then, has attracted the investors who have a high-risk tolerating appetite. It has changed its name to Sundaram Small Cap Fund w.e.f. May 2018. Therefore, the financial researchers of MySIPonline have researched about the fund to provide the brief on it, which is discussed as under:
Sundaram Small Cap Fund Snapshot:
It is an open-ended small-cap fund which significantly invests in the equity and equity-related securities. Offering the growth and dividend options under the direct and regular plan, the fund has been following the S&P BSE Smallcap Index as its benchmark. The current AUM of the fund is Rs 1,305 Cr as on May 31, 2018.
The fund manager of the Sundaram Small-cap has been investing its corpus in diversified sectors which include approximately 27% in construction, 14% in engineering, 11% in services, 8% in automobiles, and the rest in other sectors.
The average market cap of the fund as on June 18, 2018 is Rs 3,196.26 Cr. It invests 19.94% of its average capital in mid-cap companies and 80.05% in small-cap companies. The fund’s portfolio comprises 98% of equities and equity-related securities and 2% debt & money-market securities.
Past Performance Analysis:
The fund has opened with a bang in the market, providing exceptionally good returns. It has provided its highest returns in the years 2009 and 2014 which were 120.44% and 108.74%, respectively. However, after 2014, its returns have been falling both from its benchmark and peers.
Its three-year, five-year, and seven-year trailing returns are 14.61%, 28.68%, and 17.88%, respectively. As per the financial analysts of MySIPonline, the fund’s annualized returns for the year 2016 and 2017 were -0.13% and 55.58%, resp. The NAV of Sundaram Small Cap Fund as on June 18, 2018 is Rs 96.8996 with an expense ratio of 2.54% as on Apr 30, 2018.
Fund Manager:
The fund is managed by Mr S Krishnakumar, who has joined the Sundaram Assets Management Company in the year 2003. With 20 years experience of the Indian Equity market, he is currently working as the Chief Investment Officer of equities in the company.
He follows the bottom-up approach and invest by selecting the stocks which are performing weakly in the market conditions, but have the potential to offer good returns in the long run. He selects these stocks by in-house research, which has been done by the fund management team at Sundaram MF.
Being a small-cap fund, it offers the capital appreciation to investors who have an investment horizon of seven years or more. You may invest in the Sundaram Small-cap fund if you have the appetite of tolerating moderately high-risk as the fund is highly volatile.
You may invest in the fund via lumpsum and SIP both, as the minimum SIP amount of the fund is Rs 250 per month. For more details, you may contact our experts via call or email at MySIPonline.
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