Sundaram Mutual has announced the launch of Sundaram Bluechip Fund on Wednesday. The New Fund Offer (NFO) is an open-ended equity scheme predominantly investing in large cap bluechip stocks. The NFO will open for subscription on September 17, and close on September 30. The scheme will reopen for ongoing subscription and redemption from October 14, said a press release.

The scheme will invest in a diversified large cap portfolio of 45-50 growth and value stocks without any sector bias. Stock selection will be based on a three-pronged framework of Quality – of Management, of Business model and of Financials. Portfolio construction will be a blend of bottom-up stock picking with top-down selection based on sectoral and macro trends. The fund can invest up to 20% of assets in midcaps, said the release.

“Bluechips are quality companies that are usually large and exhibit the stability and agility to perform across market cycles. They are usually well-known, established industry leaders with strong processes and clear competitive advantages. The challenging economic circumstances caused by the Covid Pandemic has heightened the importance of reducing the volatility in an equity investor’s portfolio without giving up the prospect of inflation beating returns. A Bluechip Large Cap offering is ideally suited to meet this requirement,” said Sunil Subramaniam, Managing Director, Sundaram Mutual.

He said the long-term growth prospects for India look quite positive in the context of our demographic dividend and the business opportunities from an ageing China. “Foreign Institutional Investors are expected to continue investing in our markets thus imparting stability to the Large Cap space,” he added.

Sundaram Bluechip Fund will be managed by Rahul Baijal, Senior Fund Manager – Equity, and S Krishnakumar, CIO - Equity. The benchmark for the scheme is the Nifty 100 TRI Index.

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