Sundaram MF enters SIF business with launch of Select Equity Ex-Top 100 Long Short Fund

Sundaram Mutual Fund has ventured into the Specialized Investment Fund (SIF) business by launching its first fund, the Select Equity Ex-Top 100 Long Short Fund. This fund will invest primarily in equities, with the flexibility to include limited short exposure using derivative instruments of stocks ranked outside the top 100 by market capitalization.

The fund's investment universe will span companies from the 101st to 750th position by market size, with a focus on high-growth mid- and small-cap companies. The new fund offer (NFO) for this fund will open for subscriptions starting October 21, with a minimum investment requirement of ₹10 lakh. Anand Radhakrishnan, the Managing Director of Sundaram Asset Management Company, highlighted that the domestic economic transformation will be propelled by manufacturing, technology, urban consumption, and financial inclusion.

Many businesses with high growth potential are predominantly found in the small-cap segment. The Select Equity Ex-Top 100 Long Short Fund will maintain a concentrated portfolio of 25-40 stocks, which could capitalize on these structural shifts and pursue opportunities aligned with its investment objective. The fund aims to identify megatrends and related stocks, such as emerging leaders in manufacturing, premiumization, and technology, while also having the ability to take short positions to hedge risks or secure additional returns.