The Hindu Business Line : Sundaram Mutual launches leadership fund

SUNDARAM Mutual on Monday launched the Sundaram India Leadership Fund, an equity-oriented mutual fund scheme. In relation to Sundaram Mutual's basket of equity schemes, Leadership Fund has been positioned as one for the relatively cautious investor.

At a press conference, the Sundaram Asset Management's Managing Director, Mr T.P. Raman, said the Leadership Fund, aimed to identify leaders in different sectors, and invest in those companies.

He added leaders in different sectors would not only be beneficiaries during a good time, but also display more resilience in a difficult phase.

Sundaram Mutual's press release defined leaders as "the top 2 or 3 companies in any sector/sub-sector in terms of revenue or total income." At least 65 per cent of the fund's corpus would be invested in leaders at any point in time.

Leadership Fund's corpus would also be invested in derivatives instruments and money market instruments. The press release said investments in derivatives would not be more than 25 per cent at any time, while money market investments would not exceed 15 per cent.

Leadership Fund opened for subscription on Monday, and is scheduled to close on June 18. Mr Raman said Sundaram Mutual expected to raise Rs 300 crore-350 crore through the current offering.

Leadership was initially scheduled to open for subscription in the third week of May. The launch was postponed on account of the uncertainty in the stock market at that time.