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Sundaram Services Fund Direct - Growth Sundaram Services Fund Direct - Growth Sundaram Services Fund Direct - Growth Sundaram Services Fund Direct - Growth - Get latest updates on NAV, Dividends, Returns, Performance, Risks & Portfolio. Invest now! Paisabazaar INR 5000 1

Equity Thematic

PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth

1 Yr return

-0.28%

5 Yrs CAGR returns

NA

NAV as on 25 Sep

₹ 11.63 by 0.24 ( 2.09%)

Expense ratio

1.22

Exit load

1%

Fund Size (Cr)

₹ 1217.24


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Performance Graph*
Returns Calculator
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If ₹5000 invested for 1

Estimated returns*

₹ 0

with % annual returns

Direct Funds
Estimated amount
₹ 10,27,000
Regular Funds
Estimated amount
₹ 9,91,000

* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More

The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.

investment objective

The scheme seeks capital appreciation by investing in equity / equity related instruments of companies who drive a majority of their income from business predominantly in the Services sector of the economy.

Tax Implications

Returns are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay LTCG tax of 10% on returns of Rs 1 lakh+ in a financial year.

riskometer
Top Holdings
Top 10 Sectors %
Financial 29
Services 14.37
Energy 10.81
Communication 7.47
Retailing 6.95
Others 5.36
Health Care 5.28
Life Insurance 5.02
undefined 4.97
General Insurance 2.34
Top 10 Sectors %
Banking 8.72
Crude Oil & Natural Gas 8.68
Banking 7.85
Telecom.Services 7.47
Housing Finance 5.19
Retailing 4.14
Others 2.84
Life Insurance 2.82
Hotels & Restaurants 2.62
Fund house details
Fund House Sundaram Mutual Fund
Fund Manager Rohit Seksaria
Fund Setup Date 29 Aug 2018
Address Sundaram Towers, 2nd Floor, 46, Whites Road, Royapettah
Contact (044) 28583362/ 28583367/ 28569900/1800 103 7237
Email ID customerservices@sundarammutual.com
More About This Fund

About Sundaram Services Fund

An open-ended thematic mutual fund scheme that predominantly invests in equity securities of firms in the Services Sector. The fund has delivered decent returns since its inception last year as the services sector has been the fastest growing sector in the country currently.

The fund invests in services sector which includes healthcare, financial services, fitness, tourism and hospitality, transportation and logistics, wealth management, aviation, etc.

This diversification across various sectors gives stability to the investment portfolio and effectively mitigates market risk. The fund has delivered magnificent returns in the past one year, owing to the exceptional performance of the services sector.

Also Read: Sectoral/Thematic Mutual Funds

Who Should Invest in Sundaram Services Fund?

  • Thematic funds offer high returns on investment if the specific theme performs well. The services sector is growing rapidly in the country and it is expected to grow further in the future.
  • Investors who have a high risk appetite can consider investing in this fund. However, it is important to have a long-term investment horizon for this investment, ranging from 5-7 years, as the equity securities are quite sensitive to market fluctuations in the short run.
  • If an investor doesn’t have much knowledge about the stock market and cannot anticipate the future market trends, it becomes difficult to pick the right thematic fund. Therefore, for a novice investor, it is better to invest in other mutual funds such as Axis Bluechip Fund or DSP Midcap Fund with less inherent risk rather than opting for a thematic fund.
  • Overall exposure to a thematic fund in your investment portfolio should not be more than 10-13% of your investment, as they carry huge risk. It should be noted that the fund has substantial  allocation to the financial services sector that is not performing well from the past year. This has resulted in lower returns delivered by this fund. This might continue in the future owing to the recent economic slowdown.

Will You Pay Tax?

If you withdraw or redeem the units before one year of investment, Short Term Capital Gains Tax of 15% is levied. Whereas, Long Term Capital Gains Tax above ₹1 lakh will be taxed at 10% after completion of 1 year of investment.

For instance, an investor has made a capital gain of ₹30000 on investment in Sundaram Services Fund, Short Term Capital Gains Tax of 15% would be levied if s/he withdraws the amount within one year of investment. The payable tax would be ₹4500.

Also, if the investor has made a capital gain of ₹2 lakh on investment in this scheme, and withdraws the amount after 1 year of investment, Long Term Capital Gains Tax of 10% would be levied on ₹1 lakh. Residual ₹1Lakh is exempted from taxation. The payable tax would be ₹10,000.

How to Invest in Sundaram Services fund online?

  • Sign Up/Sign In to Paisabazaar.com and go to ‘Equity Funds’
  • Click on the section of ‘Thematic Funds’
  • Type and search directly by the name of Sundaram Services Fund Direct Growth. Once it opens up, look at the details. You can also compare similar funds as well as use SIP Calculator or Lumpsum Calculator to estimate the future value of your investment.
  • Click on ‘Invest Now’, select either Lump sum or SIP

Why Paisabazaar?

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  • Important scheme details such as latest Net Asset Value (NAV), expense ratio, assets under management, etc are also available on the portal, making it easier for consumers to pick a suitable fund.

FAQs

Q. What is the entry load for this fund?
A. There is no applicable entry load on the aforementioned fund.

Q. What is the exit load for this scheme?
A.
If an investor redeems the purchased units within 1 year of allotment of units, an exit load of 1% is payable by the investor. However, no exit load is levied for redemption of units after 1 year of purchase.

Q. Why has this fund chosen Service Sector as its theme for investment?
A.
The fund invests in services sector because the sector is growing with considerable rise in purchasing power, fast growth in social mobility and the ever increasing urbanisation trends. There has been a significant boost in the Services with foreign companies outsourcing their business services from India, and BPO and IT firms growing rapidly. This growth is reflected by the magnificent returns delivered by this fund in the past one year.

Q. Is there any lock-in period for investment in this scheme?
A.
No. Investors can redeem their investment as per their wish and needs.

Q. What are the Best Thematic Mutual Funds to invest in 2020?
A.
Here is a list of top performing thematic funds one can consider investing in 2019:

SBI Magnum Equity ESG Fund
ICICI Prudential FMCG Fund
Tata Ethical Fund