Top 7 Sundaram mutual fund schemes to invest in 2022

Sundaram Asset Management Company is one of the most established AMCs in the country, a renowned subsidiary of Sundaram Finance Limited. It maintains nearly 55 different varieties of schemes under its portfolio, of which 25 plans are direct while the rest are all regular plans. In this article, we will highlight the top 7 Sundaram mutual fund schemes to invest in in the context of market conditions in 2022.

Considerable factors before investment

• Risk appetite: 

Mutual funds are comparatively riskier as they are entirely dependent on the current market conditions. Therefore, proper assessment of your risk appetite based on your targets and requirements is highly essential before investing.

• The intention of investment: 

Evaluation of the essential objectives of several schemes is crucial. This makes the selection of funds easier.

• Holding analysis: 

This offers insight into the facts and figures where your resources have been eventually invested. This estimates the account for losses and ROI easier during the tenure of investment and even before that.

• Fund performance: 

The previous record of the concerned scheme reveals how well or poorly it has performed depending on the changing market trends. However, past results are not always true and are comprehensive indicators of the future.

• Experience of the fund manager: 

An expert fund manager knows exactly how to deal with your funds in the best possible manner. A proper background check and assessment of the concerned fund manager are essential before investing.

• Expense ratio: 

All equity mutual funds charge a certain fee for fund management and administration. This gets automatically deducted from the returns. 

• Exit load:

In case of liquidating the holdings before a certain time limit, the investors are charged with an exit load. However, you must know the details of the concerned fund beforehand as it does not apply to all funds. 

Top 7 Sundaram Mutual fund schemes 2022 

Some of the major Sundaram mutual fund schemes of 2022 are discussed below:

Sundaram Smart NIFTY 100 Equal Weight Fund Direct Growth

Considering the CAGR since inception, Sundaram Nifty 100 Equal Weight Fund records an annual return rate of 10.9%. It does not offer any benchmark returns and involves very high risk. Considering the market conditions, and your risk appetite, this can be a plausible investment solution.

Sundaram Large Cap Fund

As the company states, “Size matters”, this is one of the most promising mutual fund schemes offered by the Sundaram Group. It maintains a promising CAGR of 17.92% annual returns since inception, without any benchmark returns. This is an open-ended equity fund scheme, chiefly investing in large-cap stock funds. The risk involved is very high here. 

Sundaram tax-savings fund

This is an open-ended ELSS, offering a statutory lock-in period of 3 years, allowing tax benefits. The minimum

investment amount for both SIP and lump-sum is INR 500. Since its inception, it has offered 18.28% returns. The risk involved is very high in this scheme. The average AUM for August 2022 is INR 969.4 CR. 

Sundaram Aggressive Hybrid fund

Sundaram Equity Hybrid Fund has been merged with Principal Hybrid Equity Fund and thus the currently surviving scheme has been renamed so. This is an open-ended hybrid MF scheme that is noted for its predominant investment in the equity market and other equity-related instruments. The minimum investment amount for both lump sum and SIP is INR 100, and the minimum additional purchase amount is INR 100. The return of the scheme since inception is 10.56%, and the average AUM for August 2022 is INR 3106.2 CR. 

Sundaram Short Duration Fund

This scheme fund involves low to moderate risk. Since inception, the CAGR of the scheme shows an annual return of 7.2%, with benchmark returns of 7.6%. This is an open-ended short-term debt fund scheme, chiefly investing in specialised instruments involving Macaulay duration ranging between 1 year and 3 years, high-rated corporate bonds, money market instruments, SDLs, G-Secs, bank CDs, etc. Compared to the risk factor, it offers a comparatively higher interest rate. The minimum investment amount for SIP is INR 250/month, INR 750/quarter, or INR 1000/week and for a lump sum is INR 5000. 

Sundaram Diversified Equity

This is another MF scheme in the very high-risk category. Since its inception, the CAGR shows an annual return rate of 16.23% and a benchmark return rate of 14.4%. This is an open-ended ELSS, offering tax benefits, and comes with a statutory lock-in period of 3 years. The minimum investment amount for SIP is INR 250 and INR 500 for a lump sum investment. The average AUM for August 2022 is INR 1856.1 CR. This scheme perfectly suits investors who seek capital appreciation through predominant investment in equity-linked instruments and equities. 

Sundaram Medium Term Bond Fund

This is a promising MF scheme in the moderate risk category. The CAGR record since inception shows an annual return rate of 7.4%. This is an open-ended medium-term debt fund, investing exclusively in debt and money market instruments so that the Macaulay duration of the concerned portfolio remains between 3 and 4 years. It involves a comparatively higher credit risk and interest rate risk. The minimum investment amount for SIP is 250 and INR 5000 for a lump sum. The minimum additional purchase amount is INR 500.

Conclusion

This is a comprehensive account of the top 7 Sundaram mutual fund schemes that are mostly highlighted in 2022.