Sundaram Mutual is set to launch a scheme, probably first of its kind for the investors in India, that will seek to invest in stocks of world’s leading brands. The scheme, christened World Brand Fund, is expected to be launched during the October quarter of current fiscal.
“For the First time, we will launch a mutual fund for the Indian people to invest in stocks of global brands. We will be using our Singapore platform to identify and make investments in big companies. It could be an aspirational investment for people who may seek to own shares of companies like Google or other big brands,” said Sunil Subramaniam, Deputy CEO of Sundaram Asset Management Company Ltd.
The company has already secured approval for the World Brand Fund scheme, which will not only look at stock market value, but also the market share and the brand power in the market place. “There have been studies indicating that companies having a strong brand value or brand pull have consistently delivered better returns. The minimum investment in this scheme will be Rs.10,000,” he added.
Sundaram MF has got approval for nine funds across three categories - 3 series of micro-caps, 3 series in small-caps and three in world brand funds. But it is expected to launch six schemes during this fiscal. The first in the World Brand Fund series will be launched around October.
It will launch its new micro-cap fund in the next couple of weeks. “Our previous micro-cap funds have done very well, and there is a growing interest for such micro-funds among the investors,” said Mr.Subramaniam.
The company’s AUM (assets under management) stood at Rs.20,114 crore as on July 17, 2014.