Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Monday, December 23, 2013

Sundaram Select Micro Cap Series 1

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Micro-cap, or small-cap, stocks are something every investor should have some exposure to in her equity portfolio

It is a five-year closed ended equity scheme from Sundaram Asset Management Company that aims to invest in companies that can be termed as micro-caps. The scheme offer document states a company whose market capitalisation is equal to or lower than that of the 301st stock by market cap on the NSE at the time of investment will be considered to be in micro-cap category

 

NFO PERIOD: December 16 to December 30.


ASSET ALLOCATION & BENCHMARK:

 

Sundaram Select Micro Cap Series 1 (SSMCS1) scheme aims to deploy 65-100 per cent of its corpus in micro-caps' equities, 0-35 per cent in equities of companies other than micro-caps and 0-35 per cent in fixed income and money market securities. The performance benchmark for the scheme is S&P BSE Small Cap Index.


EXPENSE RATIO & LOAD:

 

The scheme will levy an annual recurring expense ratio that across various cat egories of expenses can add up to 3.12 per cent.


No exit load is applicable as SSMCS1 is a closedended scheme.


There are two primary issues concerning this new scheme closed-end offering. First is its nature, which means your investment will be tied up in micro caps for the entire five-year tenure of the scheme. Alternative exit via listing on stock exchanges is there but there is no trading in the units of almost all listed closed-end mutual fund schemes. A five-year time horizon for micro-cap investments is not bad as it gives enough time for well-managed small-cap listed companies to realise their true potential.

 

The only risk an investor runs is that at the exact time of maturity the small-cap universe may be at price level lower than that during the tenure of the scheme. What makes it a bit more uncertain is that SSMCS1 is giving itself the freedom to switch entire 100 per cent to non micro-cap stocks in the past six months of the scheme's tenure. This is in order to ensure liquidity at the time of redemption.

 

The second aspect is the micro-cap nature of the scheme. Micro-cap, or small-cap, stocks are something every investor should have some exposure to in her equity portfolio. If an investor does not already have such an exposure she can consider SSMCS1. But given the fact that the scheme may invest only 65 per cent of its corpus in micro-cap stocks the purpose of acquiring a micro-cap exposure through this scheme may not be achieved. There are existing open-end small-cap schemes an investor can opt for. But the future is unpredictable for all such schemes -old or new.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications
Related Posts Plugin for WordPress, Blogger...

Popular Posts