Investing in the Growth of Small and Mid-Sized Companies… Opportunities
Even During Market Declines!
Sundaram
Select Equity Ex-Top 100 Long-Short Fund
Founder,
Paisacare.in
Phone: 98404 22744, Arn
315388
Ramesh was
interested in investing in the stock market. He believed that the shares of
large companies had already risen to expensive levels. At the same time, he
felt that mid-sized and small companies could offer promising growth
opportunities in the future. However, he wondered whether it was possible to
seek investment returns not only when the stock market rises but also when it
declines.
One of the
investment schemes that follows this approach is the Sundaram Select Equity
Ex-Top 100 Long-Short Fund, a new Specialised Investment Fund (SIF) launched by
Sundaram Mutual Fund. Investors should understand its investment strategies
thoroughly before making an investment decision.
Focusing on Companies
Outside the Top 100
Sundaram
Mutual Fund has introduced this fund as its first scheme under the Specialised
Investment Fund (SIF) category. The New Fund Offer (NFO) closes on November 4,
2026.
The scheme
will primarily invest in companies that are not among the top 100 stocks by
market capitalisation. In particular, it will focus on mid-cap and small-cap
companies ranked between 101 and 750. Investment decisions will be based on an
analysis of these companies' financial strength, business growth, revenue
potential and stock valuations.
The scheme
follows an approach of building a portfolio generally comprising around 25 to
40 stocks. Selecting a relatively limited number of stocks may allow the fund
manager to conduct an in-depth analysis of each company. However, if the
performance of a few selected stocks deteriorates, the portfolio's value could
be significantly affected.
What Is the Long-Short
Strategy?
One of the
key features of this scheme is its ability to combine buying and holding stocks
with taking short positions in selected stocks that are expected to decline in
price.
The long
strategy involves buying stocks and seeking to benefit when their prices rise.
The short strategy, on the other hand, involves taking positions designed to
benefit from an anticipated fall in the prices of selected stocks.
For example,
if the fund manager believes that a company's share price is significantly
higher than its intrinsic value, the scheme may seek to benefit from a
potential decline in that stock's price. However, if the share price rises
instead of falling, the strategy could result in losses.
The scheme
may take permitted unhedged short positions of up to 25% of the portfolio.
While this strategy may help the fund manager manage certain market risks or
seek opportunities during falling markets, it does not guarantee lower risk or
positive returns. Short positions can also increase the complexity and risk of
the investment strategy.
Key Details Investors Should
Know
|
Particulars |
Details |
|
Scheme name |
Sundaram Select Equity Ex-Top 100 Long-Short Fund |
|
Investment category |
Specialised Investment Fund (SIF) |
|
Primary investment focus |
Mid-cap and small-cap stocks |
|
Market-capitalisation ranking |
Companies ranked 101–750 |
|
Investment strategy |
Long and short |
|
Portfolio |
Approximately 25–40 stocks |
|
Minimum investment |
₹10 lakh |
|
Investment for eligible investors |
From ₹1 lakh, subject to applicable regulations |
|
Exit load |
1% for redemption within one year; nil thereafter |
|
Benchmark |
Nifty MidSmallcap 400 TRI |
|
NFO closing date |
November 4, 2026 |
The
minimum investment requirements and eligibility conditions should be verified
against the scheme's official offer documents.
Who Will Manage the
Investments?
Madhanagopal
Ramu will manage the equity investments, Sandeep Agarwal will manage the
debt-related investments, and Shalav Saket will manage overseas investments
under the scheme.
The fund's
performance will be assessed against the Nifty MidSmallcap 400 Total Return
Index (TRI). This index accounts for changes in stock prices as well as
dividends reinvested in the index.
Who Should Consider This
Fund? Who Should Be Cautious?
Investors
with a long-term investment horizon who wish to participate in the growth
potential of mid-sized and small companies may consider evaluating this scheme.
However, investors who cannot tolerate even temporary losses, those who may
need their money in the short term, and those who do not understand the
underlying investment strategies should exercise particular caution.
Specialised
Investment Funds can employ investment strategies that differ significantly
from those used by conventional mutual fund schemes. Their strategies may
involve additional risks and greater complexity.
Before
investing, investors should read the complete scheme documents and verify the
investment charges, redemption conditions, risk disclosures and investor
eligibility requirements. The minimum investment amount is ₹10 lakh, subject to
the applicable scheme terms and regulations.
Investors
should assess whether the scheme suits their financial goals, investment
horizon and risk tolerance before making an investment decision. While the
long-short strategy may offer opportunities in different market conditions, it
does not eliminate market risk or assure returns.
For
more details and invest
Founder, https://paisacare.in
Mr.
Venkatesan P
Founder, PAISACARE FINANCIAL SERVICES, Chennai
Phone number: 98404 22744
Arn 315388
E Mail id: venkat.profit@gmail.com
Web Site: https://paisacare.in
Mr. P.Venkatesan had a 30 years’
experience in Financial Services (Life Insurance, Health Insurance, Mutual
Funds etc.)
Office
Address:
Paisacare Financial services
No 3B 2nd Street, Sivanandha Nagar
Kolathur, Chennai -600 099
Read articles written by Mr. Mr. P.Venkatesan
in Nanayam Vikatan, a leading personal financial management magazine.
Disclaimer: Mutual Fund investments are subject to
market risks, read all scheme related documents carefully. The past performance
of the mutual funds is not necessarily indicative of future performance of the
schemes.
