NFO Alert: Sundaram Mutual Fund Launches Select Equity Ex-Top 100 Long Short Fund

Sundaram Mutual Fund has opened the new fund offer (NFO) of its Select Equity Ex-Top 100 Long Short Fund through its Select Specialised Investment Fund (SIF) platform. The offer will close on November 4, 2026. 

The open-ended strategy aims to generate long-term capital appreciation by investing mainly in equity and equity-related instruments of companies ranked 101st to 750th by market capitalisation.  

Its investment universe includes mid-cap, small-cap and smaller listed companies. 

Investment Strategy 

The fund plans to hold 25 to 40 stocks selected through a bottom-up approach. Its investment themes include manufacturing, technology platforms, premiumisation, urban consumption, and financial inclusion. 

The strategy also allows short positions through equity derivatives. These positions may be used to hedge portfolio risks or seek additional returns. Unhedged short exposure can account for up to 25% through eligible equity and equity-related derivatives of companies outside the top 100. 

Short positions can generate gains when share prices fall but may incur losses when prices rise. The strategy also carries equity-market, stock-selection, and derivatives-related risks. 

Minimum Investment and Fund Management 

The minimum application amount is ₹10 lakh for regular investors and ₹1 lakh for accredited investors. Additional investments can be made in multiples of ₹1. The minimum investment threshold for the NFO is ₹10 lakh, subject to applicable conditions. 

Madanagopal Ramu will manage the equity portfolio. The fund will be benchmarked against the Nifty MidSmallcap 400 Total Return Index (TRI). 

Sundaram Asset Management Company Managing Director Anand Radhakrishnan said the strategy would focus on companies that could benefit from structural changes in India's economy, including manufacturing, technology and financial inclusion. 

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Conclusion 

The Select Equity Ex-Top 100 Long Short Fund combines equity investments in companies outside the top 100 by market capitalisation with the option to take short positions through derivatives.  

Investors must consider the associated market and derivatives risks, as the fund's objective does not guarantee returns or capital protection. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.