‘Diversified portfolio will deliver better returns in this market’

From being among the first fund houses to foray into the mid cap space, to having schemes in many new themes and spaces, Sundaram Mutual has come a long way in the last 25 years. We spoke to Sunil Subramaniam, MD & CEO, Sundaram Mutual, to talk about the long journey from Sundaram Newton to Sundaram BNP Paribas and now Sundaram Mutual. Edited Interview.Sundaram Mutual has completed 25 years in the industry. What do you want to say?A big thank you to our customers and distributors. Uninterrupted profitability while sticking to our core brand values would not have been possible without their unflinching faith in us.How has this journey been from Sundaram Newton to Sundaran BNP Paribas and now Sundaram Mutual?The journey has been one of massive learning – starting with fixed income products with Newton, discovering the joy of unearthing new investment opportunities in equites especially the Mid and small caps as Sundaram Mutual, adopting international risk management and institutional business practices with BNP and back again to a more broad based equity-oriented journey with the impending acquisition (subject to regulatory clearances) of Principal Mutual.The recent acquisition of Principal MF is going to be an opportunity as well as a challenge. What do you think about that? The opportunity arises from a complementary well-performing large and midcap equity portfolio with our mid & small cap base and from fully utilising our strong distribution pipe spread across 88 cities, leading Banks and NDs and 35,000 distributors. The challenge of integrating the two teams and ensuring continuing good performance and quality customer experience in a digital world will be our key priority.Sundaram has been instrumental is launching new themes and foraying into new investments spaces, from the first mid cap fund to now. What are your top sectors and themes in the market right now?Broad based Services theme is our top one as the economy bounces back from the lockdown. This is supplemented by a positive outlook on BFSI, Discretionary Consumption and the broader industrials pack.How do you see the markets changing for the retail investors in the coming time with so many new themes and categories coming up?Investors will be spoilt for choice and they must not lose sight of, 1. Laying down financial goals and appropriate financial plans and then decide on asset allocation. With this framework a diversified portfolio will deliver better returns as the markets shift away from extreme polarisation driven only by liquidity.What would you want to say to your investors- new and old?Systematic allocation, always diversified and ruthless redemption when pre-set goals are achieved, will deliver the most customer delight – so stay the course and Sundaram Mutual will always strive to deliver value to you! So please place your trust in us.
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