Sundaram Mutual unveils Select Debt fund

Our Markets Bureau
27 August 2002

Chennai: In order to plug the gap in its product portfolio, Sundaram Mutual, the city-based mutual fund, has launched Sundaram Select Debt, an open-ended income scheme. The scheme, which closes for subscription on 30 August 2002, is targeted at corporates and high net-worth individuals.

The new scheme has no entry and exit loads during the open offer period and comes with five plans (short-term asset plan, three-year asset plan, five-year asset plan, long-term asset plan and combined asset plan) and four options (appreciation, quarterly distribution, half-yearly distribution and annual distribution).

Explaining the investment philosophy of the new scheme, Sundaram Mutual vice-president (marketing and sales) Sanjay Santhanam says: “This scheme comes with defined maturity plans, and investment in securities will be made in line with that.”

Santhanam says under the short-term asset plan the fund will invest in securities maturing within 15 months, and under the three-year asset plan investments will be made on securities that will mature between 30 months and 42 months. In the case of the five-year asset plan, investments will be made on securities that will mature between 54 months and 66 months while the long-term asset plan will choose securities maturing beyond nine-and-a-half years.

“The fifth plan — combined asset plan — is a dynamically managed plan with the fund manager deciding the asset mix and duration of the portfolio according to the interest rate outlook,” he says. For investors, the minimum investment limit is Rs 5,000, and in multiples of Rs 500 thereafter.”

Investors are also offered the facility to switch all or part of their investments in the scheme to any other scheme of the mutual fund.