Sundaram Mutual Fund is targeting to increase its assets under management to ₹25,000 crore from ₹19,579 crore by the end of this fiscal with the launch of six new funds and better equity market performance.

Exposure in leading brands Sunil Subramaniam, Deputy Chief Executive Officer, Sundaram Asset Management Company, said the fund house has received SEBI approval for launching nine new funds of which six would hit the market this financial year.

“We plan to launch two new funds each in micro and small sectors besides two global market funds that would invest in the world’s leading brands,” he said at an event to mark 12 years of its flagship Sundaram Select Mid Cap fund.

The AUM of the Select Mid Cap fund has grown 121 times to ₹2,278 crore since its launch in July 2012. An investment of ₹10,000 at the launch has grown to ₹2.6 lakh today.

The fund has distributed ₹1,033 crore as dividends in 12 years. Interestingly, only 127 investors have stayed invested in the fund since its launch. Of these, six investors who had invested ₹50,000 each have become millionaires now, he said.

Assuring investors that the mid cap fund can replicate its performance in the next 10 years, Subramaniam said the economy now is very similar to that 10 years back and what China was 20 years back.

Positive on infra, PSU banks In the last 16 weeks, Sundaram Mutual Fund has distributed ₹100 crore as dividends to 3.6 lakh investors in 17 funds. Post-Budget, the fund house is positive on infrastructure, PSU banks and export-oriented sectors.

“We expect India to become more competitive in the export market, especially after the sharp increase in China’s wage structure and the Government’s move to cut subsidy on exports to boost domestic consumption,” he said.

This apart, the Chinese currency has been appreciating against the dollar while the Indian rupee is moving in the opposite direction, he said. On the Budget pulling the plugs on fixed maturity plans, Subramaniam said the industry has appealed to the Government not to implement the new norm on existing investors.

Finance Minister Arun Jaitley, in his maiden Budget, announced that tax on fixed maturity plans and non-equity mutual funds will be increased to 20 per cent from 10 per cent and the holding period to classify these as long-term would be extended to 36 months from 12 months. This was an attempt to bring parity between different debt instruments.

Sundaram Mutual Fund has ₹1,200 crore under fixed maturity plan of which ₹900 crore will mature by August-September, he said.

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