Jun 08, 2010 01:13 PM
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(Updated Jun 08, 2010 06:33 PM)
Sundaram BNP Paribus S M I L E Fund - Gives investors a reason to Smile.
There are many attractive mutual funds are available in the market & it is not possible to invest in all the available mutual funds but with whatever subset of mutual fund one invests into it is good to visit the portfolio time and again to see best performing funds / stocks and act accordingly to the non-performing funds.
Keeping the customers interest & to attract the investors, mutual fund asset management companies come up with different tactics. But, no tactic can be better than the one that directly benefits the customer.
One such good mutual fund is Sundaram BNP Paribus S M I L E, the fund was launched in January 2005 & since then consistently performing well. It has both growth and dividend option to choose. The fund intents to provide return by investing in the Small and Medium Indian Leading Equities (SMILE). It has emerged as one of the leading funds in this category during its five-year long performance history.
According to the company’s objectives; it is a multi cap fund with a tilt towards small cap and mid cap stocks. Nearly 74% of the investment fund is parked in mid caps and small caps with a long-term view. The remaining 26% is in large cap stocks with a view to ensure a certain degree of stability and liquidity to the fund.
From the company sources, the portfolio has been selected from 13 different sectors & the highest exposure in any stock is not more than 5%. This diversification would help to rationalise risk despite its tilt towards mid caps and small caps. The primary industry allocation of this particular Sundaram BNP Paribas S-M-I-L-E fund is pharmaceuticals, software, finance which equally holds 8% of the value while it is also distributed on other industries like auto, engineering, hotels which range from 3% to 5%. It primarily invests 35% of the investment amount in large cap funds and thus proven to have a good track record so far.
Sundaram BNP Paribas SMILE fund has won very many awards which includes the CNBC TV18 – CRISIL Mutual Fund of the year award for the year 2009 for the small and mid-cap category. Similarly it has been awarded with Five stars by Value Research Online and ICRA for the year ending December 2009 and January 2010. Economic Times has awarded Sundaram BNP Paribas Small and Medium Indian Leading Equities Fund (SMILE) with being conferred as Platinum Fund in December 2009. Morningstar has awarded this fund with four-star for year ending December 2009.
SMILE is indeed one of the most successful funds from Sundaram BNP Paribas Fund House. The fund has given best returns over a period of one and five years based on the absolute returns calculations. During past three-year period, SMILE has registered a 19.2% return, compared with its peers’ average of 9.34% and 13.4% for Sundaram Midcap. However, Sundaram SMILE Fund is marginally riskier than Sundram Mid-Cap scheme. Taking into consideration both risk and return attributes, one can consider Sundaram SMILE Fund.
Minimum Investment: Sundaram BNP Paribas SMILE fund’s minimum investment is Rs. 5000. Via SIP is minimum Rs. 1000. Benchmark: BSE 500.
Entry Load: Nil
Exit Load: 1% (if the amount is redeemed within 1 year of the date of allotment).
Current NAV: 29.071 (As on February 23, 2010). (Growth) and 14.118 (Dividend)
The Value Research Mutual Fund Ratings are, Risk - Above Average - Return - High
Recommended for investors willing to take risk.
