The Hindu : Business : Sundaram Mutual launches new scheme

Online edition of India's National Newspaper
Friday, Jan 07, 2005

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Business

Sundaram Mutual launches new scheme

By Our Corporate Reporter

CHENNAI, JAN. 6. Sundaram Mutual Fund has come out with a new scheme `S.M.I.L.E' that would invest predominantly in small and mid cap stocks in a diversified manner. Addressing presspersons here today, T. P. Raman, Managing Director, Sundaram Asset Management Company, said the objective was to achieve capital appreciation by investing in stocks whose market capitalisation was equal or lower than the market capitalisation of the largest market capitalisation stock in CNX Midcap 200 index.

According to Sanjay Santhanam, Vice President (Marketing and Sales), a study carried out by the fund managers showed that 188 companies in the mid and small cap segment had reported a compounded annual growth rate (CAGR) of 50 per cent in profit before tax over a three year period and 258 companies achieved a CAGR of 24 per cent in five years.

The scheme is open for subscription from January 3 to 24 during the initial offer period and there will be no entry load during this period. The scheme has growth, dividend payout and dividend re-investment options and the minimum investment is Rs. 5,000.

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