Sundaram Bluechip Fund is an open-ended equity scheme that predominantly invests in large-cap stocks to generate capital appreciation.
Bluechip companies are well recognised, established and financially healthy companies comprising the top 100 companies by market capitalisation.
Sundaram Bluechip Fund is an open-ended equity scheme that predominantly invests in large-cap stocks to generate capital appreciation. As a part of large-caps, Bluechip companies are well recognised, established and financially healthy companies comprising the top 100 companies by market capitalisation.
After the end of the New Fund Offer (NFO) period on September 30, 2020, the fund has been opened for ongoing subscription and redemption from October 14, 2020.
The Sundaram Bluechip Fund offers both regular and direct plans with growth and dividend options.
Minimum investment amount is Rs 100 and multiples of Re 1 thereafter. The minimum SIP (Systematic Investment Plan) is Rs 100 for monthly SIP, Rs 750 for quarterly SIP and Rs 1,000 for weekly SIP.
An exit load of 1 per cent will be charged for redemption within 12 months from the date of allotment, while no exit load will be charged for redemption on or after 12 months from the date of allotment.
Factors like proven business models, benefits of scale due to their large size, stability across business cycles, high liquidity, strong balance sheets, ability to acquire capabilities, wide and deep management bandwidth, well-researched universe etc make Bluechips attractive for investors.
The benchmark of the fund is the Nifty 100 TRI Index that has generated 3.18 per cent return in the last one year and as high as 31.47 per cent return in the last six months.
The equity portion of the Fund is managed by Rahul Baijal and Krishnakumar S, while the fixed income portion will be managed by Dwijendra Srivastava all of them have over seven years of experience.
At least 80 per cent of the fund portfolio will be constituted with high risk equity and equity-related securities of large-cap companies, up to 20 per cent with high risk other equities, up to 20 per cent with high risk overseas equities and/or American depository receipts (ADRs) and/or Global Depository Receipts (GDRs), up to 10 per cent in medium to high risk units issued by REITs and/or InvITs and low to medium risk fixed income, money market instruments, government securities, cash and cash equivalents.
So, medium- to long-term investors seeking capital appreciation with lower volatility may consider to invest in this fund.