Everything You Need To Know About Sundaram Mutual Funds Before Investing

We are not ignorant of the eminence of having an investment, be it in the form of a fixed deposit or an asset like a plot of land. But unfortunately investing a huge amount of money is always not possible and hence the prospect of mutual funds becomes accessible.

Introduction To Mutual Funds:
A mutual fund is an investment scheme managed by professionals called fund managers. It pools money from several investors who have a common investment goal to purchase securities such as stocks, equities, corporate and government bonds etc.

An individual investor owns his share which is a portion of the fund. The income collectively generated from these funds are distributed among the investors in proportion to their respective shares. However, certain minimal expenses are deducted keeping in coherence with the schemes' Net Asset Value.

The elementary schemes of mutual funds include:

  • Open-end funds: This type of MF may issue and redeem shares at any point in time. 
  • Closed-end funds: In this model, a number of shares are issued that are not redeemable from the fund. 
  • Exchange-traded funds: This investment plan deals with trading on the stock exchanges. It holds stocks, bonds or commodities which operates with a mechanism specially designated to keep the trading close to its NET (Net Asset Value)

Thus mutual funds provide investors with the scope of investing according to one's own means. And since it is managed by professional money managers, one is not required to be constantly diligent about the stocks and values.

Among a plethora of organisations extending their mutual fund schemes, Sundaram mutual fund provides the best schemes and the working of the market is closely observed by vigilant professionals.

All About Sundaram Mutual Funds

Sundaram mutual fund is regulated by the Sundaram Asset Management Company LTD. It is one of the oldest and most prestigious financial institutions of India. With the history of experience in the financial field for 20 years, Sundaram mutual fund is one of the most trusted and leading entities.  It has a long list of acquisitions and counters acquisitions sprawled all over its past records.

The organization, Sundaram Finance Limited was incorporated in the year 1954. It was later made public in 1972 and since then it has been operating unhinged in ventures like mutual funds, insurances etc.

Everything You Need To Know About Sundaram Mutual Funds Before Investing

Sundaram mutual funds are one of the best investment options for higher returns. Source: The Hindu

Sundaram mutual fund has set high standards of investment in the financial markets. Let's take a quick look at the top Sundaram mutual funds before you make your pick:

  • Sundaram Select Focus Fund: It is equity with moderate risk which has given 18.5% returns since 2002, the year it was launched. It has acquired ranking of the 55th place.
  • Sundaram Large And Mid Cap Fund: The main objective of this particular scheme is to seek capital appreciation by the means of investing in equity. It has given a 10% return since 2007 and is ranked 30 in its category. Its top securities portfolios include ICICI Bank, Bajaj Finance LTD, SBI Life Insurance Co Ltd etc. 
  • Sundaram Rural And Consumption Fund: It was launched in 2006 and since then, it has given a return of 11.5%. This sectoral fund ranks 2nd in the category. 
  • Sundaram Mid Cap Fund: Midcaps are funds which aim to invest in diverse stocks to achieve capital appreciation. The Sundaram Mid Cap Fund was launched in 2002 and since then has given a return of 25%. It ranks 13 in its category.

Besides these four schemes, there are several other schemes to pick from. You must examine and verify all the aspects of the scheme you are about to invest in. Mutual funds are subject to market risks but more often than not they give you a handsome return on your investment. This return is much higher than the highest interests that all the banks provide you with.

Do not keep your wealth idle in a bank account. Instead, invest in the Sundaram mutual fund to see your money multiply over a period of time. However, before you hurry your way, there are a few factors you must check before investing to ensure the safest and more profitable deal. And we shall also see how Sundaram Mutual Fund qualifies as the best option available in the market.

Things To Check Prior To Investing

1. Durability: An investor should never invest in a mutual fund that has not stood the test of time. The newly established funds entail more risks than the already existing funds. Sundaram mutual fund has royally stood this test of time with most schemes operating for more than a decade.

2. Past Records Of The Funds: Before investing, an investor must closely watch the historical performance of the fund. It helps to analyze the reliability of the funds. Look up for the rankings and do not go for ones that are not stable. For example, if on one hand fund X had ranked 5/50 in the year 2006 and 40/50 in the year 2011, and on the other fund Y ranked 18/50 in the year 2006 and 19/50 in 2011, go for fund Y because we are looking for consistency in order to make a safe bet. Sundaram mutual fund has a transparent record of its funds and the rankings. Most of them are consistent in their returns. You also have an array of choices to select from.

3. Keep A Check On The Entry And Exit Load: Entry and exit loads are charges levied on you at the time of joining and at the time of selling your units within a particular tenure respectively. Entry loads are however abolished by India but exit loads still continue to function. As the exit load is based on a calculation of the NAV, it affects your investment value. You must select to invest in a fund with a low exit load. Sundaram mutual fund is one such of its type that provides schemes at a low exit load. The Sundaram Mid Cap Fund itself has an exit load of 1% for 12 months and NIL above 12 months.

4. Know Your Fund Manager: Do a thorough background check about your fund manager. Also, try not to trust him blindly and keep an eye on the rise and drop of the market. A vigilant investor is the best kind of investor.

By now you are hopefully much enlightened about Sundaram mutual fund and steps to follow before investing in a mutual fund. Mutual funds are smart investments that require informed investors with a priori knowledge of contemporary economic circumstances. However, it is not rocket science and once you get hold of it, investing becomes a satisfaction. Do not wait anymore. Dream for a better future, invest for a better future.

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