facebook

Sundaram Alternates Rising Star

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Wait for performance to recover: The consistent underperfomance of Sundaram Rising Stars, from 2018-2023 (having outperformed the BSE 500 only in 1 out 6 years) is concerning, especially given the environment where small-caps were vastly outperforming large-caps. We would have to wait for performance to improve considerably prior to recommending this fund.

IME Strategy Rating

Concentrated Small-Cap Strategy: Focuses on small Cap, which leads to higher volatility, has the potential to deliver the highest return during economic growth. Invests in high-growth small caps that are in the early stages of the business cycle and have the potential to emerge as mid-caps. The strategy aims to have a moderate level of concentration with 20 stocks. Sundaram Rising Stars has demonstrated enduring performance, delivering capital appreciation over an extended timeframe.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Sundaram Alternates Rising Star

Type: Small Cap | GARP | AUM (89.5 cr) | Inc Date (1 Nov 2009)

Investment Philosophy

Sundaram PMS’s Rising Stars strategy, aims to invest in high-growth small-caps that the investment team believes are in the early stages of their business cycle and have the potential to emerge as tomorrow’s mid-caps. The strategy follows a GARP (Growth At Right Price) philosophy, and adopts a bottom-up stock selection approach to invest in sound businesses and visionary managements. The strategy aims to have a moderate level of concentration with a portfolio of ~20 stocks.

Trailing Performance

1yr 3yr 5yr Since Inception
Sundaram Alternates Rising Star 13.2 11.5 17.7 14.6
S&P BSE 500 TRI 41.1 18.4 22.4 14
Alpha over Broad Mkt BM -27.9 -6.9 -4.7 0.6
Nifty Smallcap 250 50.5 25.3 31.2
Alpha over Category BM -37.3 -13.8 -13.5

Performance as of: 30-Sep-24 | Inception Date: 01-Nov-09

Fund Managers

Madanagopal Ramu | 3-star rated FM

Fund Manager | 19 yrs Experience | 7 yrs at current firm

Past Experience: Centrum (Analyst), PFC (Project Finance)

Having joined Sundaram as a research analyst in 2010, Madangopal went on to become the Head of Research and co-manager of a number of the Sundaram AMC funds. He joined the PMS division in 2018.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% + 20% above 10% hurdle
Exit Fees1yr(1%)

AMC

AMC: Sundaram Alternates PMS (click link for detailed AMC review)

Not a top recommendation due to being an MF-driven PMS: Sundaram Alternates PMS is a mature PMS provider and with a known specialisation in small-and-mid caps. While it is slightly more differentiated than some of its larger AMC-founded PMS peers, it does suffer from MF-promoted PMS ailments (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies), which is why we typically prefer owner-managed PMS providers instead. However, it does have its own positives- (a) long-track records of core portfolios -- each of which has over a decade of performance (b) differentiation in terms of mid-and-small caps (c) more PMS-like strategies - higher concentrations & differentiated portfolios.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

3 of 5 stars

Performance

3 of 5 stars

Free 30-Day Trial of the IME RMS

Details shared above, are only a short-snapshot of the more detailed analysis that resides in IME’s Proprietary RMS (Research Management Solution).

The IME RMS is the first tool ever, to give investors direct access to the insights of the central research team. Investors gain direct access to our ratings, rating rationales & analysis across thousands of funds (MFs, PMSs, AIFs, Global funds), asset classes, categories & more.

 Learn More

IME RMS Demo

Register 30-Day Trial

Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.

CONNECT WITH US

Use our Live Chat
Book 15-min Introductory Call
WhatsApp us @ +91 96320 07774

IME Capital Pvt. Ltd. is a research-first investments firm. We aim to disrupt the wealth management industry, by shrinking the gap in investment insights between central research teams & RMs/Clients. 

Products
Solutions
Disclaimer MF/PMS/AIF/Direct Equities are all subject to market risks. Please read the scheme information and other related documents carefully prior to investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Market & other data on this site has been sourced from what are considered to be reliable sources. All views shared (product ratings, views on individual securities etc.) are the proprietary property of IME Capital and cannot be used in any form without explicit written consent. IME Capital Pvt. Ltd. makes no warranties or representations, express or implied, on products offered through the platform (and that of our partners) or on the correctness of data & views shared. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Detailed Disclaimer © 2021 All rights reserved | ARN No: ARN-182445