Sundaram Rural India Fund

Sundaram Rural India Fund is managed by J Venkatesan. The scheme seeks to generate consistent long-term returns by investing predominantly in equity/ equity related instruments of companies that focus on Rural India If you have already invested in this scheme, exit now to invest in a better performing fund. New investors can safely skip this fund.

Where does Sundaram Rural India Fund invest your money?

Sundaram Rural India Fund is an equity mutual fund concentrating its allocation in companies in rural India. Its equity allocation has mid cap bias, which means your money will be invested in stocks of mid and small sized companies. Large cap companies give stable returns but it is the mid and small cap companies that give bumper returns. Presently this fund has 30.78% allocation to large sized companies, 32.19% allocation to mid sized companies and close to 37.02% allocation to small sized companies. 

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for what?
  • Child’s Education
  • Child’s Marriage
  • Planning for retirement
  • Home Purchase
How has Sundaram Rural India Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2006, your value of investments would be around Rs 1.60 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.06 lakhs. The performance has been similar to other mutual funds in this category. The fund has been giving around 1.25% returns for those who have stayed invested for 5 years. 

Assume you had invested Rs 10,000 every month in Sundaram Rural India Fund through SIP for 5 years today you would just have around Rs 7.69 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Sundaram Rural India Fund is 2.87%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.   

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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