Bigger bang for your buck.
Mutual Funds – it can’t get bigger than this!
  • Sundaram Growth Fund - Direct Plan - Growth Option

    A subsidiary of Sundaram Finance Limited, Sundaram Mutual was incorporated in 1996. With assets amounting to Rs.25,000 crore in both debt and equities, Sundaram Mutual has its presence in 86 locations across the country and even has a branch in Dubai. Sundaram Mutual offers a plethora of investment options, such as a short term debt fund, ultra short term, Gilt funds, liquid funds, hybrid funds capital funds, debt income funds, etc.

    Sundaram Mutual also offers investors with the growth fund direct plan. For this fund, investors can buy units directly from Sundaram Mutual without the help of brokers or investor companies and accumulate the funds till the end of the scheme. Unlike the dividend fund option, there is no regular income but the corpus is redeemed entirely at the end of the scheme. The returns are usually higher when it comes to growth funds as compared to dividend funds, but this is based on the market volatility.

    Investment Objective of Sundaram Growth Fund - Direct Plan - Growth Option

    The Sundaram Growth Fund - Direct Plan - Growth Option is meant for investors that wish to see long-term capital appreciation over their investments and as compared to the dividend option of the same fund, this scheme allows the investor to accumulate the units and redeem them at the end of the scheme based on the net asset value of the units. With this fund, investors can invest in equities and equity related securities with a moderately high risk.

    Key Features of Sundaram Growth Fund - Direct Plan - Growth Option

    The key features that investors need to know about the Sundaram Growth Fund - Direct Plan - Growth Option are listed below:

    Type of fund

    Open ended equity scheme

    Plans available

    Direct Plan - Growth Option

    Options under each plan

    Investors can either choose the Direct Plan - Growth Option or the Regular Plan - Growth Option.

    Risk

    Moderately High

    Systematic Investment Plan

    Available

    Systematic Transfer Plan

    Available

    Systematic Withdrawal Plan

    Available

    Investment Amount for Sundaram Growth Fund - Direct Plan - Growth Option

    Listed below is the investment that the investor will have to make to purchase the units of the fund.

    Minimum application amount - This pertains to the minimum investment for the first purchase

    The minimum investment amount for the Direct Plan Growth Option is Rs.5,000 and multiples of Rs.1 subsequently.

    Minimum additional investment

    The minimum additional amount is Rs.500 and multiples of Rs.1 subsequently.

    Minimum installment for Systematic Investment Plan (SIP) [if SIP is available]

    Rs.1,000 for the weekly frequency, Rs.750 for the quarterly frequency and Rs.250 for the monthly frequency.

    Minimum installment for Systematic Withdrawal Plan (SWP) [if SWP is available]

    Not specified

    Entry Load

    Not applicable

    Exit Load

    2% - if the units are switched out or redeemed within 18 months from the investment in the fund.

    Nil - if the units are either switched out or redeemed after 18 months from the allotment of the fund.

    Asset Allocation for Sundaram Growth Fund - Direct Plan - Growth Option

    Instruments

    Allocations (Percentage of total assets)

    Risk Profile

    Equity and equity-related investments (inclusive of investments in derivatives)

    80% to 100%

    High

    Money market instruments

    Up to 20%

    Low

    In the case of overseas securities, an investor can invest up to 35% of the net assets.

    Who can Invest in Sundaram Growth Fund - Direct Plan - Growth Option

    Listed below is the eligibility criteria to invest in the Sundaram Growth Fund - Direct Plan - Growth Option:

    • Resident Indians
    • Non-resident Indians
    • Persons of Indian Origin (PIO)
    • Foreign Institutional Investors (FII)
    • Corporate Body
    • Trust Fund
    • Limited Company
    • Registered society
    • Any eligible institution

    NAV Disclosure and Benchmark for Sundaram Growth Fund - Direct Plan - Growth Option

    The net asset value of the fund will be disclosed on every business working day and the investment management company will publish the NAV in at least 2 local newspapers. In addition, the NAV will be displayed on the official website of Sundaram Mutual and on the website of the Association of Mutual Funds in India (AMFI) before 9:00 p.m. every business working day. For investments in Indian securities, the benchmark is S&P BSE 200 Index while for investments in overseas securities, the benchmark is MSCI Emerging Markets Index.

    Sundaram Growth Fund - Direct Plan - Growth Option Fund Manager

    Shiv Chanani is the fund manager for investments in Indian securities in the Sundaram Growth Fund - Direct Plan - Growth Option. For investments in overseas securities in the Sundaram Growth Fund - Direct Plan - Growth Option, Avinash Agarwal is the fund manager.

    Investment restrictions of the Sundaram Growth Fund - Direct Plan - Growth Option

    As decided by the investment management company and in accordance with the investment regulations set by SEBI, listed below are the investment restrictions for the Sundaram Growth Fund - Direct Plan - Growth Option:

    • In the case of a single issuer, investors shall not invest more than 10% of the net asset value of the fund in debt instruments, non-money market instruments, and money market instruments. That said, based on certain conditions, the investment limit can be increased to 12% following approval from Sundaram Mutual.
    • With regard to un-rated debt instrument, an investor can invest more than 10% of the net asset value of the fund. The total investment cannot exceed 25% of the NAV of the fund.
    • At no point can the invested fund own more than 10% of the company’s paid-up capital across their schemes.
    • An investor can transfer units from one scheme to another based on certain conditions:
      • If the units are transferred on a spot basis and are equivalent to the current market value of the schemes.
      • If the transfer is done in accordance with the objective of the scheme.
      • The transfer should be done within the provisions of the asset management company with regard to transfers.
    • Only at the discretion of Sundaram Mutual and based on the deliverables can an investor buy or sell units.
    • In case a bank has invested in the scheme, then the money redeemed from the units cannot be deposited in a savings account of the same bank.
    • The fund cannot be invested in any sponsor of the fund or any sort of unlisted security.
    • At no point can an investor invest more than 10% of the net asset value of the equity shares of one company.
    • As per SEBI regulations, one cannot invest more than 5% of the net asset value of the fund in unlisted equity shares.
    • At no point can the investor avail a loan from the corpus of the fund.
    • At no point can the investor borrow or redeem more than 20% of the NAV of the individual scheme. That said, the borrowing period should be a maximum of 6 months.
    • In the case of derivative transactions, the overall limit is set as mentioned below:
      • The collective gross exposure cannot exceed 100% of the NAV of the scheme for investments in debts, equities, and derivatives.
      • The premium paid at no point is allowed to surpass 20% of the NAV of the scheme.
      • No exposures should be created for schemes with a maturity less than 91 days
    • In the case of group debt schemes, at no point should the NAV exceed 20% of the scheme except in the case of Public Financial Institutions, Public Sector Units, or Public Sector Banks.

    Dividend Policy of Sundaram Growth Fund - Direct Plan - Growth Option

    Based on the Dividend Policy of Sundaram Growth Fund - Direct Plan - Growth Option, the distribution of units will be solely based on the deliverables. The distribution is solely based on the discretion of the trustee or asset management company.

    Special facilities under the Sundaram Growth Fund - Direct Plan - Growth Option

    Mentioned below are the additional or the special facilities under the Sundaram Growth Fund - Direct Plan - Growth Option:

    • Systematic Investment Plan (SIP)
    • Investors that wish to invest a chunk of money on a regular basis can do so via the Systematic Investment Plan (SIP). In the case of the SIP on a weekly basis, the minimum investment amount is Rs.1,000 per week. For the SIP on a monthly basis, the minimum investment amount is Rs.250, and for the quarterly basis of investments, the minimum investment amount is Rs.750. Based on the scheme, investors can choose to invest either on the 1st, 7th, 14th, 20th, and 25th of the month or quarter. That said, the SIPs will be processed every Wednesday of the week, or on Thursday if Wednesday doesn’t happen to be a business working day.

    • SIP top-up option
    • If investors wish to increase their investment amount in SIPs, they can opt for the top-up option. In the case of the monthly SIP, the investor has the option of making either a yearly top-up or a half-yearly top up. For the half-yearly option, the top-up option as chosen by the investor will be added on the 6th investment of the year and for the yearly option, the top-up will be added on the 12th investment.

      For the quarterly SIP, investors have the choice of the yearly top-up option. For all the options, the minimum top-up option is Rs.500 and in multiples of Rs.500 subsequently.

    • Systematic Withdrawal Plan (SWP)
    • For investors that are looking for a regular income, they can opt for the Systematic Withdrawal Plan (SWP). Here, the investor can choose to invest a lump sum amount and withdraw a minimum amount of Rs.1,000 on either a weekly, monthly or quarterly basis. Investors have the option of the fixed amount withdrawal, which will allow the investor to withdraw a fixed amount, anything above Rs.1,000. However, the fixed amount withdrawal option will affect the capital of the fund. That said, with the Systematic Withdrawal Plan (SWP), investors can also choose the capital appreciation option. Here, the investor can withdraw the capital appreciation subject to a minimum of Rs.1,000.

    • Systematic Transfer Plan (STP)
    • With the Systematic Transfer Plan (STP), investors can transfer capital appreciation of one scheme or a fixed amount from one scheme to another. This is usually done if one scheme is doing well with regard to capital appreciation as compared to the other. Investors can choose to make the STP either on the 1st, 7th, 14th, 20th, and 25th of every month or quarter. That said, the minimum amount that can be transferred on a weekly basis is Rs.1,000, Rs.250 for the monthly basis, and Rs.750 for the quarterly basis.

      However, if the amount to be transferred is below the minimum amount as specified above, then the STP will be terminated. Investors can also terminate the transfer option at least two weeks prior to the next transfer date.

    • Dividend Sweep Facility
    • If in case the dividend amount that has to be paid to the investor is anything more than Rs.1,000, then the investor can opt for the Dividend Sweep facility. In this case, the amount, provided it is over the minimum of Rs.1,000, will be swept into the Direct Plan Growth Option of the fund.

    Why you should Invest in the Sundaram Growth Fund - Direct Plan - Growth Option

    The Sundaram Growth Fund - Direct Plan - Growth Option is perfect for investors that wish to accumulate growth or capital appreciation of the amount invested over a long tenure. Watched over by experienced fund managers, the scheme comes with a moderately high risk but can bring home favorable returns over the investment amount.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    GST rate of 18% applicable for all financial services effective July 1, 2017.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.