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Sundaram Mutual Fund: Strong Brand Play

It is important to understand that mutual fund investments are still not a discreet part of an investor’s portfolio and a lot of ground needs to be covered.

The word ‘brand’, when used as a noun, can refer to a company name, a product name, or a unique identifier such as a logo or trademark. Sundaram has it all. The AMC has used this brand play to have a wide retail presence. “Our investor before self approach has made us what we are,” says T P Raman, Managing Director, Sundaram Mutual Fund.

Disappointing AUM growth: Given a rising market investors have chosen to cash in the gains, which is why outflows are more than the inflows. Further, investors are perhaps a bit circumspect about entering the market at these levels. Moreover, there is a transition period that needs to be given for distributors to re-jig their business model.

Regulatory changes: A change is a change. The mutual fund ecosystem will take time to work around this. A lot more ground needs to be covered. And for this, we do need a big, strong and committed distribution network. It is encouraging to see the IFAs gradually coming back which will help both the fund houses and investors.

The road ahead: We will continue to stay focused on retail initiatives. Work on product performance. Improve distributor outreach and focus on customer relations and service.

My investing style: I regularly invest with a 3 to 5 year horizon and do not attempt to time the market.