Sundaram Rural India fund


The Fund has a healthy mix of large caps and mid and small caps which are beneficiaries of recovery & growth of the Rural sector. Notwithstanding the recent demonetization.

FUND FEATURES

  • Rural prosperity
  • Dedicated Fund to invest in the key theme that will drive India growth over the next decade – Rural prosperity through increased consumption and consequently greater investment opportunities
  • Aggressively managed fund
  • Cap Curve: Multi-cap

CASE FOR INVESTING

  • The shape of rural income distribution has changed significantly over the years. Income category above middle income has risen to 15% from 5% in ’96, which will propel demand for consumer durables and non-durables. Source: A book by Rama Bijapurkar - ‘Winning in the Indian market’
  • Since 53% of the govt. employees reside in Rurban India (Source: JM Financial report - “Rural Safari - III” dated 04th May, 2016), Rural India will be the biggest beneficiary of implementation of the 7th Pay Commission and OROP

IMPACT OF DEMONETISATION

  • While it would be incorrect to say that rural economy would not be impacted because of recent demonetisation, this part of economy would also be the quickest to normalize
  • We base our confidence on the fact that rabi sowing has been very strong (up by 6% YoY) in spite of the event, which tells us that the rural income going forward would be strong

PORTFOLIO STRATEGY

The Fund attempts to invest in four primary themes

  • Farm to fork - comprises of inputs like fertilizers, processing equipment like tractors and final agri crop
  • Rural consumption, with increased weightage on consumer staples
  • Financial inclusion, which has got the biggest impetus through demonetization
  • Ancillary space such as rural infra development

sundaram rural india fund

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