Sundaram Multi Cap Fund Delivers 22.49% in 5 Years: Is It Time to Invest?

Here’s a breakdown of Sundaram Multi Cap Fund’s performance, portfolio, and key details.

Fund Overview

• Launch Date: October 25, 2000
• Category: Equity
• Type: Multi Cap
• Assets Under Management (AUM): ₹2,854 crore (as of August 31, 2024)
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

What It Costs

• Net Asset Value (NAV): ₹382.98 (Growth option), ₹70.18 (IDCW option)
• Minimum Investment: ₹100
• Minimum SIP Amount: ₹100
• Expense Ratio: 1.98% (as of August 31, 2024)
• Exit Load: 1% if more than 25% of the units are redeemed within 365 days

Fund Managers

• Ratish Varier and Sudhir Kedia have been managing the fund for 2 years and 8 months.

Recent Changes to the Portfolio

• New Entries: Coal India, EID-Parry, Marico (July); Maruti Suzuki India (August)
• Complete Exits: Grindwell Norton, ITC, Neogen Chemicals (July); Ceat (August)

Fund Background

This fund came from the merger of Sundaram Equity and Principal Multi Cap when Sundaram Mutual Fund took over Principal’s schemes in 2021. It follows a “growth at a reasonable price” (GARP) strategy, focusing on businesses with good long-term growth potential. The fund keeps a fixed 25% allocation each to large-, mid-, and small-cap stocks. For the remaining 25%, it maintains a preference for large-cap stocks.

Performance

Since the fund’s rebranding, it has performed well compared to its benchmark. However, it has lagged behind its peers. It needs to improve its performance relative to other funds in the same category to be a strong option for investors.

Conclusion

If you are a growth-oriented investor and believe in the long-term potential of the fund’s strategy, you may consider investing. However, if you are looking for better-performing funds, you might want to compare its returns with other similar funds before deciding.