NFO Alert: Sundaram Mutual Fund Launches Multi-Factor Equity Fund – Know Key Details

Sundaram Mutual Fund has announced the launch of the Sundaram Multi-Factor Fund, an open-ended equity scheme employing a multi-factor investment model. The New Fund Offer (NFO) opens on July 2 and will remain open for subscription until July 16, 2025.

 “The Sundaram Multi-factor fund, by converting decision making rules of a good active manager into a set of repeatable rules, aims to be consistent in its performance. Further, the diversification across multiple Factors and intuitive logic of rules followed by the Sundaram Multi-factor fund makes it efficient and transparent for Investors,” said Anand Radhakrishnan, MD of Sundaram Asset Management Company.

Sundaram Asset Management, a part of the Sundaram Finance Group, manages total assets worth Rs 80,880.87 crore, including its alternative assets subsidiary, as of June 24, 2025.

How Multi-Factor Investment Model Works

The fund selects stocks based on five key factors - quality, growth, momentum, value, and size, from the top 250 listed companies. It will invest in the top 25 stocks within each factor and rebalance the portfolio every quarter.

The fund will be benchmarked against the BSE 200 Total Return Index (TRI), and its equity portfolio will be managed by Rohit Seksaria, while the debt portion will be handled by Dwijendra Srivastava and Sandeep Agarwal.

The BSE 200 index consists of top 200 companies listed on the Bombay Stock Exchange and is reconstituted semi-annually in June and December. The index has yielded 5.65 per cent returns year-to-date (YTD) and 3.75 per cent returns over the past year. However, it has delivered a return of 159 per cent over the past five years.

Asset Allocation

The fund's asset mix includes 80 to100 per cent I equities, up to 20 per cent in fixed income or money market instruments, and up to 10 per cent in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs).

Who Should Invest?

The scheme is aimed at investors looking for long-term capital growth through a well-diversified equity strategy. However, it comes with a “Very High” risk rating.

The minimum lumpsum investment required is just Rs 100, and systematic investment plans (SIPs) can begin from Rs 100 a month. The fund has no entry load, and an exit load of 1 per cent will apply if redeemed within 1 year.