Sundaram Mutual Fund

Sundaram Asset Management Company Ltd., the holding organisation of Sundaram Mutual Funds, is a wholly owned subsidiary of Sundaram Finance Limited, one of India’s oldest and most recognisable financial institutions. They have over 20 years of experience in fund management at the highest level. At the time of its inception in 1996, the AMC was co-sponsored by Sundaram Finance Limited and Stewart Newton Holdings (Mauritius).

The company has a chequered history, with multiple acquisitions and counter-acquisitions throughout its existence. Its parent organisation, Sundaram Finance Ltd., was incorporated back in 1954, becoming one of the first financial organisations to be formed in independent India. With a relatively meagre paid-up capital of Rs. 2 Lakh, their primary objective at the time was to fund the purchase of passenger as well as commercial vehicles. The company became public in 1972 and has since then dealt in various areas of finance including but not limited to mutual funds, general insurance, home and car finance, and financial services distribution.

As of now, Sundaram Finance Ltd. is one of the largest financial institutions in India with reported net assets worth over Rs. 28,000 Crore and annual gross revenue of over Rs. 5000 Crore.

Sundaram AMC was formed in 1996 in a bid to separate Sundaram’s mutual fund division from its core financing operations. Sundaram has had a long association with the Newton group, which co-funded the AMC at the time. In 2002, however, Newton Investment Management was acquired by Mellon Financial Corporation. Sundaram took the opportunity to acquire Newton group’s holding in the merged company.

Another company that Sundaram AMC has a history with is the French financial giant, BNP Paribas Asset Management (BNP PAM), which acquired a 49.9% equity stake at Sundaram AMC in the year 2006. The joint venture, however, was short-lived.

In 2010, BNP PAM had to relieve its stake at Sundaram Mutual Fund as it acquired the Fortis group, and government regulations dictate that a company can only promote one mutual fund. Since then, Sundaram AMC has been a fully-owned subsidiary of Sundaram Finance Ltd.

The AMC has a diverse portfolio of mutual funds in multiple segments including equity, debt, liquid and fixed income funds. They have an astute 21 member investment team, comprising of fund managers, analysts, dealers and economists, who are at the forefront of financial services. With a robust retail connection, Sundaram has earned the loyalty of a vast clientele who trust their investor-friendly approach and long-term outperformance.

With a total AuM of around Rs. 56666.81 crores, Sundaram is among the top asset management companies in India. Its AUM has grown at a CAGR of 17% over the last 9 years. Sundaram Mutual Fund has been ranked 18th * in the Asset Management industry as well. They have 94 branches including international & shared branches along with 305 distributors. 

Sundaram Mutual Funds has handled over 5.6 million client folios in its decorated history. As of FY18, they have 13.69 million active folios. They have an extensive distribution network with over 35,000 empanelled distributors in their ranks.

They were the first AMC to launch mutual funds in emerging fields such as Leadership, Rural India, Capex, Mid-cap and Micro cap.

With its headquarters in Chennai, Sundaram Mutual Funds has made customer satisfaction its top priority. They have one of the most robust customer-care operations, with 93 centres spread across the length and breadth of the country. They also have a fully-owned asset management subsidiary in Singapore and a branch office in Dubai.

Principal Mutual Funds, often abbreviated to PMF, was previously known as IDBI PRINCIPAL Mutual Fund. However, the IDBI Group is no longer associated with the fund house. It was incorporated decades ago in 1991, but was only set up in 1994. It was initially set up as a trust and under the provisions of the Indian Trusts Act of 1882.

Principal Mutual Fund is currently one of India’s leading Mutual Fund houses. While it may not have as much Assets under Management as some of the bigger players in the market, it has managed to double its net AUM over the last 3 years. PMF has aggressively campaigned over some years and has managed to expand its footprint as well.

As of March 2022, Principal Mutual Fund India has a total sum of Rs. 7768.23 Crore under its ambit. The funds major also has several regional offices spread all over the country. It is also registered with SEBI with the registration number being MF/019/94/0.

The stated reason why the main backers- Principal Financial Services Inc., USA- is firmly behind this Mutual Fund is because it intends to spread better and more efficient financial inclusivity across the country. Besides, there is much room for growth in an economy as diverse as India’s.

The Fund was a result of a Trust deed executed by the IDBI Bank in 1994. At that time, IDBI Bank was the sole settler. In 2000, the United States’ Principal Financial Services Inc. acquired a 50% stake in the Mutual Fund. In 2003, the Principal Group acquired the entire stake of the organisation via its wholly-owned subsidiary- Principal Financial Group Mauritius.

To reflect the new ownership pattern, the AMC also had a new name- Principal Asset Management Company PL. It is now the sole governing body of the entire Mutual Funds schemes that Principal Group currently has in India.

In 2004, two PSU banks were asked to get on board the Funds house. They were Vijaya Bank and the Punjab National Bank. These institutions continue to be associated with the Mutual Funds business of Principal.

In accordance with the law, some ownership patterns were changed in 2004. Currently, Principal Mauritius Private Limited has a share of 65% overall, while Punjab National Bank owns 30% of the company and Vijaya Bank owns 5%.

All three partners currently hold all rights, liabilities, titles and interest of the Mutual Funds house.

As of March 2019, Principal Mutual Fund has 67 active schemes. These are a mixture of long-term, medium-term and short-term funds, and Gilt funds, among several other types of funds. A breakdown of the active plans shows that:

• There are 2 arbitrage funds.
• Balanced and Global funds are also 2 each.
• More than 3 Short Term Income Funds.
• Principal Mutual Funds have more than 8 Ultra Short Term Funds.
• A total of 4 Liquid Funds are currently available.

Principal Mutual Fund has two independent auditors to keep a tab on all financial operations and keep everything above board. These are the reputed Batliboi and Associates and the BSR Group. The Board of Directors has a wide gamut of professionals from a diverse range of specialities, which is a major plus point.

Principal Mutual Fund has also managed to reach out to the immense expanse of the country thanks to their primary sponsors- Karvy ComputerShare Private Limited. It has been one of the first adopters of technological breakthroughs.

The following sections detail the schemes that the MF major currently offers followed by how Groww can help you.

1. Mr. S. Krishnakumar

Mr. S. Krishnakumar is the Vice President and Chief Investment Officer at Sundaram Mutual Funds, a company he has been associated with since 2003. He joined as a Senior Research Analyst at the company and steadily rose through the ranks to become the Head of Equity Research in 2004. He was also working as a Fund Manager at the same time.

Mr. Krishnakumar is a former student of Loyola Institute of Business Administration and NIT, Trichy from where he earned his PGDBA in Finance and B.E respectively. Before joining Sundaram, Mr. Krishnakumar had served in the capacity of Vice President at Anush Shares and Securities Pvt. Ltd. and Senior Engineer at Lucas TVS.

Mr. Krishnakumar manages 31 schemes aggregating an AuM of over Rs. 17,000 Crore. Some of the key schemes that he manages include Sundaram Financial Services Opportunities Fund Direct Growth, Sundaram Rural and Consumption Fund Direct Growth, Sundaram Infrastructure Advantage Fund Direct Growth and Sundaram Large and Mid Cap Fund Direct-Dividend.

2. Mr. Rahul Baijal

An IIM-C MBA in Finance, Marketing and Strategy, Mr. Rahul Baijal is a Senior Fund Manager at Sundaram. He joined the company in July 2016 after an enriching career spanning over 17 years.

Before being a part of the Investment team at Sundaram, Mr. Baijal had served as a Fund Manager at Bharati AXA Life Insurance for 4 years. He was also a Director and Portfolio Manager at TVF Capital, and Equity Analyst at HSBC Global Banking and Markets, and Credit Suisse. He started his career as a Management Trainee at Standard Chartered Bank.

At Sundaram, Mr. Baijal manages 16 schemes worth a net AuM of 4,603. His key funds include Sundaram Select Focus Fund Direct-Growth, Sundaram Financial Services Opportunities Fund Direct-Growth, and Sundaram Equity Hybrid.

3. Mr. Rahul Ranjan

With more than 15 years of experience in financial markets, Mr. Rahul Ranjan is a critical cog in the Fund Management team at Sundaram Mutual Funds. He is also a Vice President of the firm since December 2018. Mr. Ranjan is a gold medallist in the Finance stream of Indian Institute of Management.

He has served in different capacities at various financial organisations. Just before Sundaram, he was a Vice President and Head of Equity at Star Union Dai-ichi Life Insurance where he headed a team of fund managers which managed over Rs. 7,000 Crore worth of assets. He has also served as a Fund Manager at Max Life Insurance Company for 10 years. Mr. Ranjan started as an Assistant Manager at Adani Wilmer Limited, where he served from 2001 to 2004. As the Sales Manager, he was responsible for launching ‘Fortune’ Edibe Oil in Bihar and Jharkhand, where it is the top edible oil brand today.

At Sundaram, Mr. Ranjan manages 3 schemes with assets worth Rs. 3,000 Crore. Some of his schemes with highest returns are Sundaram Select Focus Fund Direct-Growth, Sundaram Rural and Consumption Fund Direct-Growth, Sundaram Global Advantage Direct-Growth and Sundaram Large and Mid Cap Fund Direct-Dividend Payout.

4. Mr. S. Bharath

Mr. S. Bharath is one of the most prominent Fund Managers at Sundaram Mutual Fund, with an experience spanning more than 17 years. He started his career as a Research Analyst at a Mumbai-based firm, Navia Markets Limited in 2002 till 2004 when he joined Sundaram.

His initial years at Sundaram were spent as a Research Analyst as well, a post he held till 2008 until he moved to fund management. Currently, he manages 11 schemes with an estimated AuM of 4,100 Crore. Most notably, he is Sundaram’s point of contact for all investments in overseas securities.

Some of the funds under his management are Sundaram Rural and Consumption Fund Direct-Growth, Sundaram Large and Mid Cap Fund Direct-Dividend, Sundaram Infrastructure Advantage Fund Direct-Dividend Reinvestment and Sundaram Large and Mid Cap Fund Direct-Growth.

5. Mr. Rohit Seksaria

Mr. Rohit Seksaria secured an All-India rank of 36 in his ICAI exams. He went on to study Finance at the prestigious Indian Institute of Management, Ahmedabad from where he graduated in 2002. Mr. Seksaria had an early exposure to world finance when he worked as a Summer Intern at JP Morgan Investment Management in 2001.

Since then, Mr. Seksaria has served in multiple roles in different organisations. He began as a Manager at UTI Mutual Fund and moved on to Irevana Research Services where he headed their Global Equity Strategy Research team. He has also worked as a Senior Portfolio Analyst at Progress Capital Pte Ltd, an Analyst at Matchpoint Investment Management, a Portfolio Manager at Progress Capital/Asia capital & Advisors Pte Ltd before finally joining Sundaram as a Fund Manager in January 2017.

At Sundaram Mutual Funds, Mr. Seksaria manages 12 schemes including Sundaram Global Advantage Direct-Dividend Reinvestment, Sundaram Debt Oriented Hybrid Fund Direct Plan-Dividend Quarterly Reinvestment, and Sundaram Global Advantage Direct-Growth. His net AuM is estimated to be around Rs. 3,200 Crore.

1. Mr. Rajat Jain

Mr. Jain is a senior professional in the Mutual Funds industry and has been associated with the group since its inception. He has over 3 decades of experience in Investment Banking simultaneously. Mr Jain is currently the Chief Investment Officer at Principal Mutual Fund.

Mr. Jain is a Mechanical Engineer from the National Institute of Technology and is an alumnus of the Indian Institute of Management.

He has previously worked at the highest echelons with the SBI Mutual Funds group. He has been appointed as advisor by several leading financial institutions on occasions.

Mr. Jain provides a degree of calm in a turbulent market. He leads the Portfolio strategy too, and is in on course of taking Principal Mutual Funds to greater heights.

2. Mr. Aashish Khubchandani

Mr. Khubchandani is one of India’s most promising young fund managers. Before joining the Principal Group, he occupied a senior post at Crest Finserv. Crest Finserv was also known as Tullett Prebon India earlier.

Mr Khubchandani is a qualified CFA and is one of the youngest professional fund managers to hold so high an executive post in a MF house in India.

He has also worked as a “Dealer – Fixed Income” in the past.

3. Mr. Siddarth Mohta

Mr. Mohta is a known face in the India Mutual Funds business with a sparkling career in several leading corporations in the past. He has worked with industry-leaders like ICRA, Polaris, and Adventity Solutuions Limited. He is currently an associate fund manager with Principal Mutual Funds.

Mr. Mohta is an alumnus of reputed institutions and is a Bachelor in Commerce with a Post Graduate degree in Management. He has been with Principal Mutual Fund since 2009.

4. Ms Rupali Pandit

Ms. Pandit has over 19 years of hands-on experience in various sections of risk, asset and wealth management. She holds a UG degree in Commerce and successfully completed the Intermediate CA exam.

She has worked with some leading firms in the financial segment like ABN AMRO, IL&FS, and GIC Limited as an Equity Dealer. She also functions in the Equity Dealing section at Principal Mutual Fund. She has been named one of the most influential female figures in the Indian market and has received several awards over many years. Her career spans over 19 years and she has been with the group since 2013. It is under her mentorship that the Equity Funds subdivision of the Mutual Funds business of Principal was launched. She is also a committed environmentalist.

All fund managers work closely with the board of trustees and the management. Principal Mutual Fund is growing at a rapid rate under their watchful guidance.