Tag: Sundaram Mutual Fund

Valuations are no longer a major concern for investors, quality stock picking is key to success: Sundaram MF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund in an interview with CNBC-TV18, highlighted that current valuations do not seem to be a major concern for investors. He noted that mutual fund managers are constrained by risk management disciplines, which typically prevent them from holding more than 5% to 10% of their assets in cash.

This means that the majority of incoming funds – around 90% – must be actively deployed in the market, irrespective of high valuations.

“Currently, valuations don’t seem to worry people at all. If customers are giving fund managers money, risk management discipline will not allow you to take cash calls in mutual fund of more than 5% or maximum of 10%. That means 90% of the money that comes in has to be deployed,” Subramaniam explained.

He further said that the recent selling by Foreign Institutional Investors (FIIs) has created opportunities for domestic mutual fund managers to acquire stocks at reasonable prices, thereby maintaining a healthy investment space. “Good thing for domestic mutual fund managers is that FIIs have been selling, which means that you are getting some stocks at fairly reasonable prices.”

Addressing concerns about high valuations, Subramaniam argued that what appears expensive on a one-year forward basis might look much more reasonable over a three to five-year period. The expertise of fund managers and their research capabilities play a crucial role in identifying companies that are likely to experience a V-shaped recovery, thus justifying the valuations.

“Valuation-wise, what’s looking very expensive from a one-year forward, will look very reasonable when you do a three-year forward or a five-year forward basis,” he said. Subramaniam stressed the importance of quality stock picking through thorough analytics, which mitigates the risk associated with seemingly high valuations in the short term.

Subramaniam also highlighted the confidence of Indian investors in the economy’s future. He noted a significant shift from traditional bank deposits to mutual funds, with a growing allocation of investments into equities.

“I don’t think the Indian investor has any doubt about the future of the economy. And I think the shift from bank deposits to mutual funds is well underway,” he remarked. He pointed out that while some investors are opting for direct equities, mutual funds continue to capture a substantial share of the incremental allocations.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sundaram Mutual Fund appoints Anand Radhakrishnan as Chief Executive Officer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Sundaram Mutual Fund on Monday, February 12, announced the appointment of Anand Radhakrishnan as Chief Executive Officer (CEO). Anand was earlier a part of the company for 8 years from 1996 to 2004, according to company’s statement.

He previously served as Managing Director & CIO (Equity) at Franklin Templeton India.

Managing Director Sunil Subramaniam is scheduled to retire in June 2024 after 19 years of service, and Anand will take over as the Managing Director in July 2024.

Speaking on the appointment, Harsha Viji, Executive Vice Chairman, Sundaram Finance said, “Anand’s leadership skills, seamless alignment with our culture, coupled with his extensive industry experience makes him a strong addition to the company.”

Sunil Subramaniam, Managing Director, Sundaram Mutual added, “I welcome Anand to the Sundaram family and I’m sure his induction will strengthen our ability to deliver customer delight and help take Sundaram Mutual to newer heights in the years to come.”

Sundaram Asset Management Company has assets under management of over ₹71,000 crore as on January 31, 2024, the fund house said in a press release.

The brand has 81 branches across the country.

Sundaram Asset Management Company has a bouquet of sixteen equity, five hybrid and nine fixed-income funds catering to diverse investor preferences, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sundaram MF’s Sunil Subramaniam: Small cap gains would be re-deployed into large caps

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Veteran fund manager Sunil Subramaniam expects a sideways move in the market, which he says has “already discounted the future”. There could be some selling by foreign portfolio investors in the large cap space from the future perspective, he told CNBC-TV18.

“What could happen is some amount of rejigging of small caps, which have risen a lot, and redeploying that into large caps,” said Subramaniam, Managing Director and CEO of Sundaram Mutual Fund, which has more than Rs 40,000 crore in assets under management.

Broader markets have sharply outperformed the headline indices in recent times. On a year-to-date (YTD) basis, the Nifty Midcap 100 and Smallcap 100 gauges have risen as 32 percent and 43 percent respectively, much higher than headline index Nifty50’s 18 percent return.

Midcap and smallcap stocks were in focus last week after stock exchange BSE introduced rules aimed at curbing excessive movement in the segment. The bourse, however, later clarified that the action applied on select stocks, giving a sigh of relief to market participants.

Also read: BSE clarifies on price band circular

On India’s economic growth, he said the market has factored in a V-shaped recovery.

“Now the next is to actually wait for the festival season, to see if the third wave has an impact, and to see if the Reserve Bank of India continues with its ‘accommodative’ stance of monetary policy,” said Subramaniam, who expects consumer durables and discretionaries to rise in the upcoming festive season.

But more importantly, he said, the market is rising is because it has started to shift its focus to FY22-23 earnings.

“The market is actually saying that the third wave (of the pandemic) will not damage the economy as much because progress on the vaccination front is very good,” the fund manager said.

Also read: Saurabh Mukherjea says TCS, Infosys better plays vs midcap IT

By December, by which we would have about 65-70 percent of our population vaccinated, will bring down the impact of the pandemic, he added.

Subramaniam is bullish on export-oriented stocks and said he would look at allocating funds into them.

Also read: Morgan Stanley selective on midcap IT; overweight on Mphasis, Mindtree

“I would look at an allocation into the export-oriented sectors. IT is obviously on the top of the pack… and to some extent pharma; chemicals are the new thing. The third is on the electronics front,” he said.

Follow our market blog for the latest D-Street updates

Catch more Q1 earnings here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Positive on capital goods, consumer discretionary & building materials: Sundaram MF’s Sunil Subramaniam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Discussing fundamentals of the market, Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund stated that he would significantly increase exposures in economy sensitive stocks.

In an interview with CNBC-TV-18, he stated that India is likely to take about nine months to come back and is the fastest-growing economies in the world.

“I believe that the budget was not just about action, it was about direction. The reforms planned the PLI announcements clearly indicate and South Korea is the only country which is going to get back to pre-COVID absolute GDP levels faster than India,” he pointed out.

On opportunities in market Subramaniam said, “So capital goods supply, building materials – cements, steel, paints, and the likes and those would be the bets because those order books are not yet showing so buying before that – if you do a lot of research to see who is likely to back those orders because when the news comes the price jumps. So we have to catch it before the news.”

He further added that consumer discretionary looks good for a shorter time frame.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Buy midcaps, small caps; positive on housing finance co, cement: Sundaram MF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

S Krishna Kumar, Chief Investment Officer for Equity at Sundaram Mutual Fund believes the underperformance of midcaps and smallcaps will correct itself in the next 12 months.

“So we should position ourselves more there,” he said in an interview with CNBC-TV18.

“To a large extent, most of the negativity is behind us. We should continue to build on the equity end of the asset allocation. The rally is more into the largecaps given the liquidity that comes through,” he added.

“Slowly the midcaps and smallcaps will enjoy further run, it is going to be very good time for midcaps and smallcaps in the next two years,” Kumar said.

“Most of the uncertainties are now well behind us. From the domestic economy perspective, we seem to have come back to pre COVID-19 levels except a few high-intensive sectors of multiplexes or airlines which will come back in next quarter or so,” he said.

“Globally the uncertainty of the US election is behind us, the Fed has reiterated its stance to keep liquidity going for a couple of years and first signs of rate hike would be a year away,” he added.

On banking and financial stocks, he said, “Banking space, the small finance banks, the non-banking financial companies (NBFCs) have had a terrible run in the previous two years, so they are all catching up with the kind of liquidity that is available. That is a big area of financials that we would be positive on to add.”

“We are seeing a big thrust from the government on the housing space, so housing finance companies (HFCs), the building material space would be very good plays to play the next three-four years in the midcap and smallcap space,” he said.

According to him, two-wheeler plays would consolidate as they had a very good run. “I would think that incrementally a lot of the ancillaries which benefit from either a two-wheeler recovery or passenger car recovery is a place to be in now. You need to allocate more towards the auto ancillaries which have a multiple set of drivers at this point of time,” he said.

For more, watch video…

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect market to remain volatile till mid-Jan: Sundaram Mutual Fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, is bullish on the economic recovery, but not on the market. Subramaniam believes the market may not necessarily follow the path of a very sound economic recovery.

“Markets will continue to be volatile for the next couple of months because of the flows being volatile,” said Subramaniam in an interview with CNBC-TV18. According to him, the market will remain volatile till mid-Jan after which it will respond to the recovery in economic indicators.

“While there will be volatility, we expect the downside to be protected by mutual fund-buying and hence I would say that give me time till mid-January for the market volatility to settle down after which I feel the markets will respond to the fundamentals of the improving economy and should see the next leg up,” he said.

While giving recommendations for portfolio positioning, Subramaniam said, “Today we should maintain a 70 percent bias towards largecap and 30 towards mid and smallcap and come January first quarter, I would reduce largecap from 70 down to 60 percent or even 55 percent and gradually build up mid and small cap.”

“IT, pharma, and to some extent consumption — the FMCG level — should form the core of the portfolio for the next 2 months and then you can add banking which I see is a good growth sector over the next 12-18 months. Gradually add discretionary consumption like consumer durables, autos and housing – all of those I think would come in to play in a greater level from mid-January onwards,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow