Sundaram Midcap Fund
Sundaram Mid Cap Fund, previously known as Select Mid cap is one of the consistent performer in mid cap space since its launch in July 2002. Total AUM (Assets Under Management) is 5700 Crores, makes it stand at 4th position which has comfortably outperformed the Nifty Midcap TRI Index.
Investment Philosophy
The fund uses 5 S approach alongwith Growth at reasonable valuation.
- Simple Business
- Scalable Opportunity
- Sound Management
- Sustainable Competitive Advantages
- Steady & Sustainable Cash-Flow
Morningstar Risk & Return Rating
Over the last 3, 5 and 10 years we see that the fund has a higher upside capture than the category but poor downside protection. So existing and potential investors should keep in this mind. See the change in numbers when you change settings to 3Y and 5Y.
Rolling Returns
Sundaram Mid Cap has an impressive long-term record, comfortably outperforming mid cap index, Franklin Prima and L & T. HDFC Mid Cap Opportunities has outperformed in its shorter history both in terms of risk and reward.
Over five years too, Sundaram Mid Cap has consistently beat Nifty Midcap 100 which is difficult to do.
Summary – Should I Invest?
Newer investors must understand that this fund can test your patience and take time to deliver. So use it only for truly long-term goals.
This is a consistent performer in the mid cap space, but do not expect downside protection from it. When the index falls, this is likely to fall more and make up for it when the cycle reverses. So unless an investor has the right mindset to weather such storms, they should consider this fund.
Artharthi 