Sundaram Mutual launches equity scheme

Capex Opportunities Fund aimed at capital goods industry

Sundaram Mutual today launched an equity scheme call Sundaram Capex Opportunities Fund. The Capex Opportunities Fund opened on August 10 and will close on September 5.

The mutual fund's officials explained that Capex Opportunities Fund's aim will be to invest in companies that make and supply capital goods.

The underlying logic is that capital goods manufacturers would be the first to benefit from the investment plans of Indian corporates and the government.

Typically, equity schemes in the mutual fund industry raise money from largely individual investors, as against debt schemes where banks and corporates place large sums of money.

Sundaram Mutual's managing director, T P Raman, felt that the Capex Opportunities Fund had been launched at a time when there was interest among individuals.

"I think there is good appetite. There is huge savings potential," said Raman. Prasad Nalam, chief investment officer of Sundaram Mutual, told the media that Sundaram Mutual had not estimated the corpus that could be raised through the Capex Opportunities Fund.

Seeks Sebi nod

Sundaram Mutual has approached the capital market regulator Securities and Exchange Board of India (Sebi) for permission to start a portfolio management scheme.

T P Raman said that the mutual fund had not yet finalised the marketing strategy for the scheme. However, the aim was to make it accessible to a large cross section of people, he added.

Sundaram Mutual's next equity scheme is likely to be based on a rural theme. The last few of its launches have covered different themes such as the Capex Opportunities Fund. Each thematic scheme has a unique level of associated risk.