101537  |  INF903J01116  |  3 star  |  Neutral


$ 163.42

1-Day Total Return

INR | NAV as of 12/15/2017 10:30:00 AM | 1-Day Return as of 15 Dec 2017

TTM Yield




Total Assets

5.7 bil



Fee Level






Min. Inv.


30-Day SEC Yield




Investment Style

Large Growth
Morningstar's Take | 29/12/2016
by Kavitha Krishnan

The fund is currently being managed by Rahul Baijal, who took over management responsibilities from previous manager Shiv Chanani in October 2016. This is Baijal’s first stint at managing a mutual fund, given that his previous work experience included managing funds in the insurance sector. We would like to evaluate his style and execution of the strategy over a longer period before we build more confidence in the fund, the process, and the manager.

The investment team at the AMC has been restructured, with managers being assigned roles that reflect their areas of strength. While Baijal manages the AMC’s large-cap strategies, Chanani now manages flexi-cap strategies. Krishna Kumar manages their small and mid-cap mandates in addition to his role as the CIO of Equities. We think that the restructuring will yield positive results over the long term. However, we would like to evaluate the impact of these changes over a longer-term before we build more conviction on the team. 

The investment strategy for this fund tends to change in line with market sentiments. Launched in July 2002, Sundaram Select Focus was an aggressively run large-cap fund composed of roughly 30 stocks representing the manager’s highest-conviction picks based on three or four themes. In September 2010, the strategy was modified to a diffused portfolio of up to 50 stocks, with sector weights broadly in line with the index. An improvement in the economic environment has led to a slight reduction in the number of stocks, with the fund currently running a relatively concentrated portfolio.

Taking a concentrated exposure in a few companies further adds to the risk of the portfolio. An error of judgment on either sector or stock positions could lead to substantial underperformance with such a strategy. We think that these are early days for Baijal and we would like to evaluate his skills at managing this portfolio. We would also like to see the investment strategy take concrete shape and evaluate the strategy over the long term to draw confidence from it. Based on these changes, we think it prudent to assign a Morningstar Analyst Rating of Neutral on this fund for now.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

The fund has a significant bias to large caps.


A recent manager change and an internal restructuring restrict our conviction level.


The AMC has been working towards making positive changes.


The fund runs a slightly concentrated approach with a meaningful investment in two or three sectors.


These are early days under the current manager. We would like to see long-term performance.


The fund’s price is higher as compared with of the median for the category.

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