Sundaram Mutual Fund is expecting its total assets under management (AUM) to reach Rs 25,000 crore by the end of the current fiscal, a top official said.
The Chennai-based company, which launched two tax saving closed ended schemes today, was on track to reach the target of Rs 40,000 crore AUM in three years, Sundaram Mutual Fund Managing Director, Harsha Viji said.
“We have been growing rapidly. Currently, our asset under management is Rs 22,000 crore, which we believe will reach Rs 25,000 crore by end of financial year,” he said.
On the proposal to reach Rs 40,000 crore AUM, “We are very much on track to reach it. We should be able to reach in two-three years.”
Noting that the company’s schemes have performed “exceedingly well” in the past, Sundaram Mutual Fund Deputy Chief Executive Officer Sunil Subramaniam said the two schemes — Sundaram Top 100 Series IV and Sundaram Long Term Tax Advantage — are tax savings schemes and are closed ended scheme.
Sundaram Long Term Tax Advantage Fund aims to invest 80 per cent to 100 per cent of the scheme’s assets under management in equity and equity related while Sundaram Top 100 aims to invest 95-100 per cent in large-cap, mid-cap diversified 40-45 stock portfolio.
Both these funds which open today, come with a three year lock-in period, he said, adding that Sundaram Long Term Fund ends on March 20,2015 while Sundaram Top 100 (series IV) alone will end on January 16,2015.