Sundaram Financial Services Opportunities Fund

The Sundaram Financial Services Opportunities Fund is open-ended equity, long-term investment program scheme. The primary investment provided under this scheme is in the banking & financial services industry. If you are looking to invest in stocks across various financial services like banking, insurance, etc., this scheme offers the same. The fund comes under the category of very high-risk schemes.

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With a satisfying net asset value, capable percentage on return since launch, affordable minimum investment value, and a credible total market value, this fund sounds promising. In addition, the type of scheme is sectoral, which looks appealing for an equity fund product.

Fund in Brief

The Sundaram Financial Services Opportunities Fund is suitable for investors who are on the lookout for capital appreciation. If you are searching for Indian companies in financial services offering equity, this might be an apt fit. The fund relies on the booming financial sector in India.

For potential prospects, the fund is offered in two different plans:

  • Regular Plan
  • Direct plan

The options involved under the scheme are as follows:

  • Growth option
  • IDCW (Income Distribution cum Capital Withdrawal) option - payout,  transfer, and reinvestment.

You have the option to select a suitable plan from the application form itself. However, it’s always advisable for you to consult with your financial advisor if there’s any difficulty in making a choice.

Sundaram Financial Services Opportunities Fund Facts

Fund house providing the scheme

Sundaram Mutual Fund

Category of the fund

Open-ended fund

The inception of the fund

June 2008

Fund Managers

Mr. Rahul Baijal, Mr. Ratish B Varrier & Mr. Dwijendra Srivastava

Benchmark

Nifty Financial Services TRI

Class of the fund

Stock

Minimum investment required

Rs. 100

Level of risk

Very high

Entry Load

Not Applicable

Exit Load

Only applicable in cases where more than 25% of the units are redeemed. 1% of the applicable Net Asset Value will be charged.

**”The investment risk in investment portfolio is borne by the policyholder”.

*Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product by an insurer or any other financial product.

Investment Objective

The predominant objective of the Sundaram Financial Services Opportunities Fund is to seek capital appreciation for the long term. The sponsor of the fund owns a 100% stake in the scheme. It is managed through Sundaram Asset Management Company Limited and Sundaram Trustee Company Limited. Since the fund is of the sector type focusing on the financial services, the primary objective is to optimize returns rather than generate income.

The scheme offers a minimum of 25 portfolio stocks. Banking on the significant growth observed in the sector, the key attractive features of the fund relies on booming opportunities. The preferred stock selection period is for 3 to 5 years. In addition, it is a flexible fund where you can take active cash calls.

The Investment Manager gives weightage to the investment objectives keeping a hold of the relevant applicable regulations. As it is a sector-specific fund with greater volatility, the objectives follow additional risk management strategies.

Fund Summary

  1. Sundaram Financial Services Opportunities Fund Regular Plan:

    • Launch Date - June 10, 2008
    • Risk - Very high
    • Growth - Rs. 59.6893 since inception
    • IDCW - Rs. 23.0610
    • Expense ratio - 2.58% (as of July 31, 2021)
    • Assets - Rs. 394 crores (as of July 31, 2021)
    • Return - 14.45%
    • Turnover - 23%
  2. Sundaram Financial Services Opportunities Fund Direct Plan:

    • Launch Date - January 1, 2013
    • Risk - Very high
    • Growth - Rs. 63.7247 since inception
    • IDCW - Rs. 25.0271
    • Expense ratio - 1.18% (as of July 31, 2021)
    • Assets - Rs. 394 crores (as of July 31, 2021)
    • Return - 13.34%
    • Turnover - 23%

    Even though entry loads and lock-in periods are not applicable for the product, you should be mindful of the exit loads. For stock units exceeding 25% of the total investment made, 1% exit load will be conditionally charged. The charge applies if you redeem the fund within 365 days.

    The minimum investment required and minimum additional purchase is Rs. 100 and minimum balance is Rs. 1. For SIP/STP scheme, the rates vary for quarterly, monthly & weekly terms as Rs. 750, Rs. 100 & Rs. 1000 respectively.

Fund Return Summary

The return summary for the Sundaram Mutual Services Opportunities Fund is represented in the following table:

Tenure

Type

% Return

Last 1 year

Fund/benchmark/nifty

57.69 / 54.22 / 44.16

Last 3 years

Fund/benchmark/nifty

11.77 / 12.72 / 12.9

Last 5 years

Fund/benchmark/nifty

12.64 / 16.68 / 14.19

Since inception

Fund/benchmark/nifty

14.06 / 16.45 / 11.45

*Returns are subject to change.

*The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

Pros

Cons

Suitable for the long-term capital scheme.

You cannot opt for a short-term scheme.

The sector-specific feature might appeal to you if you are an expert in the finance domain. 

A financial advisor is a must if you are not familiar with the industry. This might bring in additional charges.

No entry load. Exit load is also not applicable except for exceptional cases.

The risk involved is very high.

The Indian financial services sector is growing promisingly.

Liable to market risks associated with mutual funds.

Benefits of the Sundaram Financial Services Opportunities Fund

The main benefits of the fund are as follows:

  • A diversified portfolio of stocks is available. It will appeal to seasoned equity fund investors.
  • Fund management is professional and well-regulated.
  • Being an equity fund scheme, it is liquid and systematic. Therefore, a liquified profile for funds is always welcome from an investor’s perspective.
  • The long-term investment scheme helps you avail of tax benefits.
  • The fund has showcased longevity and consistency in the market.
  • The performance analysis of the fund is satisfactory. Previous graphs and research will authorize this fact.

Fund House Details

The Sundaram Mutual Fund offers the Sundaram Financial Services Opportunities Fund under the Sundaram Asset Management Company. It was established in 1996, and the parent company is Sundaram Finance Limited (SFL).

The fund house has product offerings in the equity, fixed-income, and liquid spaces and has its headquarters in Chennai. The fund management team has a research team built on thought leadership and innovative design. With 25 years in the fund management service, the company boasts 3.5 million customers and Rs.41,613 crores of total assets.

SFL was established in the year 1954 as a Non-Banking Financial Company (NBFC). Detailed information can be found out on their website.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Who Should Invest in the Sundaram Financial Services Opportunities Fund?

To know if the fund is suitable for you, you may self-check with the below-mentioned points:

  • You have long-term investment goals.
  • You are willing to take risks with calculated measures to grow your money.
  • You prefer investing in stocks and equity funds.
  • Your financial knowledge is excellent, or you can afford someone with a similar caliber.
  • You have an appetite for investment strategies employing capital realization.

Final Words

The Sundaram Financial Services Opportunities Fund is the right fund for you if you consider the attributes mentioned above fitting. However, all mutual fund schemes are subject to market risks. Therefore, if you plan to invest in the fund, you need to follow a responsible structure. Your best choice is to get financial advice from investment managers and product/portfolio specialists.

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