This Thematic Fund Outperformed Benchmark, Given 20.68% Annual Average Returns

Although mutual funds offer a lot of flexibility, they are subject to a variety of systematic and unsystematic risks. They can be caused by a variety of circumstances, including domestic and global ones, which might have a negative impact on their performance. However, mutual funds such as thematic funds are becoming a popular category for investors. Nowadays, SIP investments in mutual funds are no longer different from mutual fund investments. This thematic mutual fund we mentioned below has given promising returns on 2 and 3 years of SIP since its inception.

Sundaram Services Fund - Direct Plan-Growth

This is 3 years and 8 months old Thematic-Service Fund from Sundaram Mutual fund. It was launched on 21st September 2018. It is an open-ended medium sized fund of its category. The Asset Under Management (AUM) of this fund is Rs 2104.83 crore. As on 11th May 2022, its Net Asset Value (NAV) is Rs 19.8126. It has a 0.72% expense ratio, which is less than its category average returns. 

It is a highly risky fund for investment as it is an equity fund. Investment started in this fund with a minimum investment amount of Rs 100 for a lump-sum payment, Additional investment, and SIP, respectively. There is no lock-in period applicable here in this fund. However, it charges 1% for redemption within 365 days for units in excess of 25% of the investment.

This thematic-service mutual fund scheme seeks capital appreciation by investing in equity and equity-related instruments of companies that drive a majority of their income from business predominantly in the services sector of the economy. The benchmark of this scheme is NIFTY Service Sector.

Absolute And Annualised Returns

Lump-Sum Investment Returns

In the last 1 year, the fund has delivered 19.91% Returns, double of its category average returns. Since its launch, it has delivered 20.67% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	19.91%	19.91%
2 Year	101.75%	42.04%
3 Year	83.14%	22.30%
Since Inception	97.75%	20.68%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	-2.78%	-5.13%
2 Year	26.06%	24.07%
3 Year	41.43%	23.88%

Portfolio

The fund is invested in equities to the tune of 90.96 per cent, with 45.43 per cent in large-cap companies, 10.96 per cent in mid-level stocks, and 13.26 per cent in small-cap stocks. The fund's investments are mostly in the financial, services, technology, energy, and communication sectors. In comparison to other funds in the category, the fund has smaller exposure to financial and services sectors. ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Bharti Airtel Ltd., and Housing Development Finance Corp. Ltd. (HDFC) are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.