Sundaram Financial Services Opportunities Fund

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

**”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.