Sundaram Newton mops up Rs 116 crore

Chennai: Sundaram Newton Asset Management has mopped up Rs 116 crore under its three open-ended schemes: Sundaram Income Plus (Rs 76.83 crore), Sundaram Select Focus (Rs 21 crore) and Sundaram Select Midcap (Rs 19 crore). While the first is a debt fund, the other two are equity funds.

While agreeing that investors have favoured the debt scheme, Sundaram Newton managing director T P Raman says: “Collecting Rs 40 crore under two open-ended equity schemes proves that investors are ready to favour such innovative funds.”

The innovation he talks about is in terms of the investment philosophy behind these three schemes. Raman says Sundaram Income Plus (the debt fund) will invest in AA-rated securities. Sundaram Select Focus will invest in select large cap stocks that are liquid, while Sundaram Midcap will be a diversified equity fund focussed on mid-cap shares having potential to appreciate.

Sundaram Newton chief investment officer N Prasad says the mutual fund is yet to decide on the sectors and stocks in which the three new schemes will invest.

About the state of economy, Raman says: “The Indian corporate sector is cutting down its costs, and consolidation is happening in sectors like cement and steel. As a result, the demand-supply match is coming back. Further, with the political and the forex situation being stable, equities are expected to perk up.”

About the lack of growth in employment opportunities at a time when companies are sending their workforce home, and the impact on savings in mutual funds can only be experienced after two years, Prasad says: “Presently, people in large numbers are looking at the services sector, which is expected to absorb that workforce.”

The Rs 8.38-crore-revenue Sundaram Newton today manages around Rs 800-crore worth assets comprising six funds — diversified growth fund, bond fund, balanced fund, money fund, gilt fund and tax-saving fund.

With Sundaram Finance buying out the Stewart Newton Holdings (Mauritius) stake in the company, Sundaram Newton will soon undergo a name change. The company has already started building a new corporate identity: Sundaram Mutual has dropped the word Newton from the title.