Sundaram Mutual Fund has initiated the new fund offer (NFO) of the Sundaram Money Market Fund on the 12th of September. The NFO of the new debt scheme will be open till 26th September 2018 and ongoing subscription/redemption of scheme units will start on 28th September. This money market fund being an open-ended scheme will allow purchase/redemption of units on all days when markets are open.
Sundaram Money Market Fund will invest up to 100% of assets in money market instruments with unexpired maturity of 1 year or less. Key investments of the scheme will include commercial papers (CPs), certificate of deposits (CDs), T-Bills (Treasury Bills), Government securities, Reverse Repo and CBLO. Additionally, this money market fund will also have the option to invest in derivatives provided such investments do not exceed 50% of net assets.
CRISIL Money Market Index will serve as the benchmark of the new money market scheme from Sundaram Mutual Fund. This index is the ideal benchmark as it is designed to track the performance of a money market portfolio that comprises T-Bills, CDs and CPs – which will be among the top investments of the scheme. As of August 2018, this index has featured returns of 7.19%, 7.37% and 8.37% over the 1 year, 3 year and 5 year periods. These returns are in line with a portfolio consisting of potentially low risk and high liquidity investments.
Sundaram Money Market Fund will be jointly managed by Siddharth Chaudhary and Sandeep Agarwal. They already manage or co-manage the AMC’s most popular debt schemes including Sundaram Money Fund, Sundaram Low Duration Fund and Sundaram Banking and PSU Fund. As of 31st August 2018, these leading debt mutual funds from Sundaram MF have recorded AUM of Rs. 8,464 crores, Rs. 1,696 crores and Rs. 1,022 crores respectively.
Additional Info of Sundaram Money Market Fund NFO:
|NFO Period||12th September to 26th September|
|Minimum Investment||Rs. 1000|
|Benchmark||CRISIL Money Market Index|
|Fund Manager||Siddharth Chaudhary and Sandeep Agarwal|