Sundaram Mutual has signed up with Karvy for availing its registered transfer agent (RTA) facility. The move follows the parent company Sundaram Finance selling off its stake in Sundaram BNP Paribas Fund Services to its joint venture partner BNP Paribas.
Sunil Subramaniam, Managing Director, Sundaram Mutual, said the decision would benefit the investors as the asset management company has bargained a better deal to bring down the overall cost.
The fund house plans to come out with three new offers this fiscal — large-cap diversified, hybrid balanced advantage and arbitrage fund — and has already applied with SEBI for launching large-cap fund, he said.
Consistent with its policy of rewarding investors with dividend, Sundaram Services Fund has announced a dividend payout of ₹0.80 a unit in one year of its launch. The record date for the same is October 15.
Sundaram Services Fund invests in 15 distinct sub-sectors including banks, retail, finance, healthcare services, media and entertainment, telecom, utilities, software, services, transportation and commercial services across market capitalisation. The fund has a portfolio of 44 stocks with top 10 stocks accounting for 46 per cent. Currently 49.4 per cent of the portfolio is in large cap stocks, 20 per cent in mid-caps and 23 per cent in small-caps.
Subramaniam said the fund managers have managed to beat the volatility in the market by staggering deployment judicially and delivered 15 per cent return since launch.