A digital-first NFO: Sundaram Bluechip Fund
Sundaram Asset Management Company, with an asset under management of about Rs 36,657 crore as of August 31, 2020, has recently launched a new fund offer (NFO). It is an open-ended equity scheme, predominantly investing in large-cap blue-chip stocks. The issue closes for subscription on October 1, 2020.
What makes this NFO special is that it’s a digital-first NFO. Sundaram Mutual launched a digital-first campaign, which takes a creative approach to show a Sumo wrestler. The idea behind choosing a Sumo wrestler is the fund, which is large-cap and also, represents strength, size, and agility, just like a sumo wrestler.
To lead up to the campaign, the brand released a few teasers with the hashtag #SomethingBigIsComing for its followers to expect a 'Sumo-sized surprise' from Sundaram Mutual. The campaign took off on September 17 across multiple channels including Facebook, Instagram, Twitter, LinkedIn, and YouTube. The idea was loud and clear i.e. #SizeMatters.
Additionally, to tap into the trend of the IPL during this period, Sundaram also created a video, leveraging the cricketing aspect of this fund. Tapping into the fact that big hits are required to win the large games and size always matters. In a similar way, one would need a large scale fund in their portfolio, since, size matters! Sundaram Mutual also leveraged various formats to make the users aware of the information and USPs of the fund via live webinars, videos, and informative posts on social, live Q&A sessions, engagement stories, and posts, etc.
Sundaram Mutual has created a wide range of digital enablers to help its distribution partners mobilise investments in a completely frictionless manner. Transactions can be initiated by distributors through the brand’s distributor initiated platform (DIT) and executed upon investor authorisation. They can also share a link hard-coded with their distribution details for investors to transact.
Investments can also be made through the website through a very simple three-step process. In addition, the company also launched a paperless eNACH (electronic mandate) feature to enable investors to seamlessly set up SIPs online. Their digital-first approach would also encourage users to invest through various online platforms like PayTM Money, Groww, 5Paisa, Sqrrl, Kuvera, and more through an easy ‘one-click to invest’ process.
Stock selection will be based on the three-pronged framework of quality i.e. of management, business model, and financials. Portfolio construction will be a blend of bottom-up stock picking with top-down selection based on the sectoral and macro trends. The fund can invest up to 20 per cent of assets in mid-caps.
Sundaram Bluechip Fund will be managed by Rahul Baijal, Senior Fund Manager (Equity), and S Krishnakumar (CIO-Equity). The benchmark chosen is Nifty 100 TRI Index.