Sundaram Select Micro Cap Series XV is a close-ended equity scheme which may help investors in getting long-term capital growth. Investment predominantly will be done in equity and equity-related instruments of companies that can be termed as micro-caps. Therefore, investors should understand that their principal will be held at moderately high risk.
Here are a few things you should know before investing in this scheme:
New Fund Offer time period
The NFO opened on May 10, 2017, and closes on May 24, 2017. The Trustee reserves the right to extend the new fund offer period within the prescribed limit. The NFO period shall not exceed 15 days in accordance SEBI regulation.
To seek capital appreciation by investing predominantly in equity/ equity related instruments of companies that can be termed as micro-caps. However, there can be no assurance that the investment objective of the scheme will be realized
Other-equity refers to large-cap (including derivatives of large cap) & mid and small cap stocks. Here large cap stocks are defined as any equity stock whose market capitalization shall not be below the market capitalization of the 50th stock, while mid and small cap stocks are defined as any equity stock whose market capitalization shall not be above 50th stock and below 300th stocks.
Liquidity of the Scheme
Being a close-ended scheme the fund will not buy the units back till the maturity of the scheme. The units of the scheme will be listed on the NSE within five business days from the date of allotment and will be subject to terms and conditions of the exchange. Investors who want to sell their units in demat form in the scheme can do so on the NSE, subject to availability of liquidity
The entry load and exit load is not applicable under this scheme.
Minimum Application Charges
The MAC for the scheme is Rs 5000, which can be increased in multiples of Rs 10 thereafter
S&P BSE Small Cap Index is the benchmark of this scheme. The S&P BSE Small-Cap index was launched on April 11, 2005, and is designed to measure the performance of small-cap companies listed on BSE Ltd.
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.
(Source: sundarammutual website)