—Sundaram—

Sundaram Emerging Small Cap - Series III

A close-ended equity scheme investing predominantly in small cap stocks

NFO Opens: April 23, 2018 NFO Closes: May 07, 2018

What are small caps and Why Why now? Why invest in Sundaram Emerging
invest in them? Small Cap Series III?
• Robust uptick in economic growth
driven by reforms and targeted spend Sundaram AMC is a fund house with a
Small cap stocks are defined as
long and successful track record of over
251st company onwards in terms • Recent correction in prices especially
15 years in investing in the mid and
of market capitalization. of small caps offers an attractive entry
small cap space.
point.
Smaller companies offer higher The fund aims to offer upside potential
• The shift to a digital economy
long-term growth potential over the long term by investing in high
combined with the roll out of GST will
growth small cap stocks.
compared to larger companies. pave the way for a sustained period of
economic growth. The fund would follow a bottom up
Most often, small cap companies approach in stock selection based on
are overlooked, under • The shift from the unorganised to the
in- house research.
organised sector due to GST will
researched and under owned
favour small companies.
offering an opportunity for long
• Continuing structural change to the
term wealth creation.
economy will herald the arrival of new
industries which most likely will be by
small cap companies.

Therapeutics Logistics

Financial Services including

Hospitality
Wealth Management, Insurance

Entertainment Micro Finance / Small Finance Bank

Retail Contract Manufacturing

Small cap funds have outperformed

Small cap funds have outperformed over various time periods Performance across market cycles, across market cap curves
BSE Mid-cap and Small-cap movement against the Sensex

Large Cap Funds Mid Cap Funds Small Cap Funds 2500 Sensex BSE Mid Cap BSE Small Cap
29.0 2000
30
25 23.9 1500
20
16.0 16.3 1000
15.3 15.3 15.4
15 13.0
10.6 11.7
10.3 500
10 7.5
0
Apr 05

5
Apr 03

Apr 04

Apr 06

Apr 07

Apr 08

Apr 09

Apr 10

Apr 11

Apr 12

Apr 13

Apr 14

Apr 15

Apr 16

Apr 17

Mar-18

-
1 Year 3 Years 5 years 10 years

Source: Value Research; Data as of March 31, 2018

• In the last economic upturn between

Phase 1 Phase 2 Phase 3
Apr‘03 and Jan’08, large caps
Begin End % Begin End % Begin End % appreciated by 559%, mid caps by
Returns Returns Returns 933% and small caps by 1427%

Apr’03 Jan’08 Jan’08 Oct’13 Oct’13 Mar’18 • During the current bull market (from
Oct‘13 to Mar‘18), the numbers are
BSE Sensex 3,168 20,873 559 20,873 21,165 1 21,165 32,969 56 56%, 161% and 188% respectively.
BSE Midcap Index 950 9,817 933 9,817 6,107 -38 6,107 15,963 161
• Potential for further appreciation
BSE Small Cap Index 885 13,516 1427 13,516 5,896 -56 5,896 16,994 188 from current levels.

Data as on March 31, 2018. Returns are calculated on absolute basis. Source: Bloomberg; Sundaram Asset Management

Sundaram Asset Management www.sundarammutual.com

 —Sundaram—
Sundaram Emerging Small Cap - Series III
A close-ended equity scheme investing predominantly in small cap stocks

Widening Choice: Cap-Curve based trends across NSE & BSE

Category Mar-04 Mar-07 Mar-10 Mar-13 Mar-17

Largecap 9,207 26,819 45,036 50,556 78,675
Midcap 1,104 4,518 7,546 9,293 17,234
Smallcap 618 3,823 6,288 7,128 15,798
Total Mcap 10,929 35,161 58,871 66,977 1,11,707
Share of Smallcaps (%) 5.7 10.9 10.7 10.6 14.1

Investment opportunities in small cap space has expanded and will continue to expand, as the economy grows and more and more
companies and sectors emerge.
New companies and new sectors most likely will start their life-cycle as small caps. An early investment in them offers the opportunity for
long term wealth creation as they transition from small to mid and eventualy to large cap companies.
*M.Cap in Rs. Bn.

Source: In-house Computation

Scheme Summary Key Benefits

• Opportunity to benefit from growth potential of small

• A five year close-ended Equity Scheme
cap companies
• A diversified portfolio of around 50 growth oriented
• Given the close-ended structure, the fund is better
reasonably valued small cap stocks
placed to pick stocks with a long term outlook
• Benchmark – S&P BSE 250 Small Cap Index
• A proven fund manager with a long and successful
• Fund Manager – S Krishnakumar track record

Disclosure & Riskometer

Disclaimer: Copies of the Statement of Additional Information, Scheme Information Document and application form with Key Information Memorandum may be obtained from the
offices / Investor Service Centres of Sundaram Mutual or its authorized distributors or downloaded from www.sundarammutual.com. Past performance is no guarantee of future result.
General Risk Factors: There can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities
market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk
of capital loss. Investors in the schemes are not being offered any guaranteed or indicated returns. Fund Facts: Minimum Investment amount - For both Regular and Direct Plan ` 5000/-
and in multiples of ` 10/- thereafter. Fund Manager: S. Krishna Kumar; Benchmark: S&P BSE 250 Small Cap Index. Plans: Regular & Direct. Options: Growth, Dividend Payout & Dividend
Sweep. Load: Entry Load - Nil; Exit load - Not applicable. General Disclaimer: This document is issued by Sundaram Asset Management, an Investment Manager registered with the
Securities and Exchange Board of India in India and is produced for information purposes only. It is not a prospectus or Offer Document or Scheme Information Document or an offer or
solicitation to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied
upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any
evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or commitment
whatsoever or be taken as investment advice. The information and opinions contained in this
communication have been obtained from sources that Sundaram Asset Management believes to be
reliable; no representation or warranty, express or implied, is made that such information is accurate This product is suitable for investors who are seeking*
or complete and it should not be relied upon as such. Sundaram Asset Management neither guarantees Riskometer
its accuracy and/or completeness nor does it guarantee to update the information from time to time. By • Long term capital growth, Moderate
accepting this document you agree to be bound by the foregoing limitations. This communication is for
y M
el od
at e
er w Hi rat

general information only without regard to specific objectives, financial situations and needs of any • Investment predominantly M
od Lo gh ely

particular person who may receive it and Sundaram Asset Management is not soliciting any action in equity / equity-related
based on this document. Sundaram Asset Management in the discharge of its functions, may use any
High
Low

instruments of companies
of the data presented in this document for its decision-making purpose and is not bound to disclose the
that can be termed as LOW HIGH
same. For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects
please refer the Statement of Additional Information and Scheme Information Document available Small Caps. Investors understand that their principal will be at

Moderately High Risk

online and at branches/Investor Service Centres. Statutory: Mutual Fund: Sundaram Mutual Fund is a
trust under Indian Trusts Act, 1882 Liability for sponsor is limited to ` 1 lakh. Sponsor: Sundaram *Investors should consult their financial advisers if in doubt about
Finance Ltd. Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram whether the product is suitable for them.
Trustee Company Ltd.

Mutual Fund Investments are subject to market risks, read all Scheme related documents carefully.

Consult your investment advisor or call 1860 425 7237

(India) +91-44-28310301 (NRI) SMS SFUND to 56767
• E-mail: customerservices@sundarammutual.com
(NRI): nriservices@sundarammutual.com