Tag: Sunil Subramaniam

Budget 2019: Govt to focus availability of fund for MSMEs, infrastructure, says Sundaram MF

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

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Any positive move in the market recently would be seen as a pre-Budget rally as global cues are not great nor is the domestic footprint of the Indian economy, said Sunil Subramaniam, managing director and chief executive officer of Sundaram Mutual Fund.

“There is clarity in the market that the government has the power to act. Although the fiscal space is not great, some announcements could help rekindle interests in the economy, growth from the private sector,” he said.

According to him, the market will be okay with a slight slippage in the fiscal deficit because the growth needs to be revived. Maintaining the fisc may be good for our country’s credit rating and FII flows but the stock markets will respond to growth, he added.

Even if the government were likely to widen the tax bracket or take some steps to increase tax collections in the upcoming budget, it would be directed towards expenditure to boost growth and not to maintain the deficit. Moreover, the giveaways would not be in populist measures but more towards boosting growth, employment etc., said Subramaniam.

The agenda of the government would be to focus on infrastructure and so there could be some sort of tax benefits for raising money for infrastructure spending, he said. Secondly, since the NBFC crisis affected growth, the government would try to create availability for finance to small and medium sector, which in turn would finance the capex cycle and infrastructure creation, he said.

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

FII flows to India to remain strong, gross inflows to rise, says Sundram Mutual Fund CEO Sunil Subramaniam

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

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Sundaram Mutual Fund’s total assets under management (AUM) for the month of May stood at Rs 25.43 lakh crore as against Rs 25.27 lakh crore
in the same period of the previous year. The net inflow was at Rs 516.4 crore versus Rs 458.6 crore the previous year. The month-on-month  (MOM) ETF inflow — excluding gold, index fund — stood at Rs 2,432 crore versus Rs 4,259 crore outflow.

The net equity inflow inclusive of ELSS for the month of May came in at Rs 5,408 crore as against Rs 4609 crore MoM.

According to Sunil Subramaniam, MD and CEO of Sundaram Mutual Fund, the improvement in net equity inflows would continue despite the pressure owing to the DHFL ratings downgrade. “It would continue because a lot of reallocation would happen from debt to equity segment. Secondly, the election result will give a lot of confidence to people to invest,” he noted.

Talking about gross inflows and redemptions, he said: “Gross inflows are the way you look at fresh people coming in, while redemptions are a separate aspect – existing investors who have been in for a long time are booking profits. So one should look at gross numbers and redemptions separately. The gross number indicates that the confidence is rebounding in the market.”

“As long as gross inflow is a rising number, it indicates health in terms of outlook towards equity market in terms of flows. We have a strong new government in place and people are expecting FII flows to continue strongly because of the US-China trade war. World growth is slowing and liquidity will naturally flow towards the country recording highest growth, which is India,” he observed.

Despite the lower GDP numbers, India is among the fastest growing country in the world, Subramaniam pointed out.

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Cyclical sectors could see ‘significant upside’ in coming months, says Sundaram MF

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

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Sunil Subramaniam, MD & CEO at Sundaram Mutual Fund, spoke to CNBC-TV18 about the mutual fund investments and stock market returns.

On the NAVs, Subramaniam said, “Customers who have already invested in mutual funds, we have a daily report card. So, the NAVs, when they show a sharp 3-4 percent jump, customer satisfaction increases dramatically. So, as a customer facing entity, it is a very good thing.”

“You have seen that midcaps and smallcaps over the last one year, prior to this one day rally, were down about 21 percent in smallcap and 11 percent in midcap. However, in just one day that has come down to single digit in midcap and about 15 percent in smallcap. So, customers who have been investing, either through SIP or normal, would have been facing a little bit of pain, would have been worried about it, my exposure what to do. This jump has created a lot of relief in a lot of customers,” Subramaniam added.

On the individual sectors, Subramaniam said, “For us, the key sector with a significant upside would be cyclical sectors and related to that. When I say cyclicals, I am talking about corporate banks. The capacity utilization in the economy is just inching up beyond 76 percent with just purely a government action so far. I think that though consumption has slowed down, I think there is still incremental consumption happening and a lot of sectors where capacity utilization is inching up to 85 percent plus levels. Hence, we expect a restart of the capex cycle from the private sector not too far away, let us say 6-9 months.”

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Market will be nervous and volatile till election results, says Sundaram Mutual Fund

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

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Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, spoke to CNBC-TV18 about the market fundamentals and quarterly earnings.

On market fundamentals, Subramaniam said, “It is a combination of the verdict on May 23rd and the pressure that we are seeing in the global space. A lot of money came up for May 23rd because there were positive signals around the continuity of the government but now the market is slightly nervous because it is too close to that event. There is already a lot of FII money, USD 9 billion has come in year-to-date, almost USD 3 billion in this quarter. So that is already enough money in the market and domestic mutual funds are very cautious. I don’t think they are taking extra calls right now.”

Talking about the fourth-quarter earnings, Subramaniam said, “The earnings season has also been iffy, broadly it has been okay. I think the guidance has been good but they will wait for the election to commit so that is nervous and obviously the international nervousness is adding to the thing. Market will continue to be nervous and volatile till May 23rd.”

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

A lot of HNI money is flowing into smallcaps and midcaps, says Sundaram Mutual Fund

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

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Sunil Subramaniam, MD and CEO of Sundaram Mutual Fund (MF), spoke to CNBC-TV18 about the fundamentals of the market.

“There are two separate trends which are driving this market. There is a profit booking from people who have entered the market two years ago and who are booking profits because of the election uncertainty and saying let me capture my gains and relook at it and there is fresh money which is flowing in and there from last month to this month, what we are seeing is a lot of HNI money is now flowing into smallcap and midcap segment,” Subramaniam said on Friday.

Talking about the MF flows, Subramaniam said, “I would say gross flows last month were about 10 percent down. So we think that this month the gross flows should be back up 5 percent. Net flows – I am not able to predict the redemption pattern because at our counters we are not seeing any significant change in the redemption pattern.”

“The way the investors are perceiving midcaps and a fund manager perceiving midcaps are two totally different things. At no point will I buy a mid-cap for value. I will buy only the growth of the midcap. So that is why stock picking is very important. The philosophy that we follow is growth at a reasonable price (GARP). I am still searching for growth despite the value correction,” said Subramaniam.

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

MF experts say inflows into equity funds steady, seen no request to cancel SIPs

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

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Equity mutual funds are expected to see a big dip this month making it the fourth straight month of fall, but, the flows have to be read in the context of net flows and gross flows, said Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund.

“The gross flows have been steady between Rs 30,000 to 40,000 crore between April until now, while the net flows figure could vary depending on redemptions for a particular month,” he told CNBC-TV18.

Swarup Mohanty, Chief Executive Officer at Mirae Asset Global Investments added that no change has been seen in inflows into their equity funds.

“There is fair amount of stress in fixed-income flows and but the for now id liquid funds. This trend is expected to continue for some more time, Mohanty explained.

The other distinction is between general equity and balanced, arbitrage, FoFs etc. Rs 15,000 crore of general equity has been steady right through the year while the other goes up and down. Moreover, out of this Rs 15,000 crore general equity, Rs 8000 crore is SIP.

Subramaniam also confirmed that he has not come across any request to cancel SIPs. However, the incremental flow to the SIP, which was rising fast has slowed down, he added.

According to him, the market is reacting to the fact that the purchases of mutual funds have slowed down. MFs have increased cash positions by 1.5-2 percent due to volatile market conditions and it is around 4-4.5 percent now.

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