The Hindu Business Line : Sundaram Mutual plans `Star Fund'

SUNDARAM Mutual has filed an offer document for an equity-oriented scheme, Sundaram Star Fund, with SEBI even as the public offer of another issue is in progress.

An equity-oriented scheme, Sundaram India Leadership, was launched towards the end of May and is scheduled to close on Friday.

Sundaram Star is an open-ended fund wherein the investment focus would be directed towards companies that have the potential to become global sourcing bases for products/services.

The draft offer document filed with SEBI showed that at least 65 per cent of the fund's corpus would be invested in equities and related instruments such as warrants.

Sundaram Star's asset allocation pattern provided for an investment of up to 50 per cent of the corpus in derivatives. Sundaram Mutual's earlier scheme, Sundaram India Leadership, gave itself room to invest up to 25 per cent of the corpus in derivatives.

The offer documents in both the schemes said that derivatives' investment would be primarily for hedging the portfolios.

Sundaram Star's offer document was filed in the wake of the company's aim to launch a series of schemes by September this year. The new launches are a part of the company's plan to attract more retail investors.

Other than new launches, Sundaram Mutual has also strengthened its sales force and branch network to achieve its aim.