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Sundaram Alternates Rising Star

Scheme Rating

IME Scheme Rating

3 of 5 stars

Reasonable Investment Option: For investors seeking small-cap exposures, but prefer investing via a larger more established AMC

IME Strategy Rating

4 of 5 stars

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 (90.8 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 26.8 21.2 16.1 14.7
S&P BSE 500 TRI 39.5 19.5 19 13.1
Alpha over Broad Mkt BM -12.7 1.7 -2.9 1.6
Nifty Smallcap 250 67.7 29.7 25.2
Alpha over Category BM -40.9 -8.5 -9.1

Performance as of: 28-Feb-23 | Inception Date: 01-Nov-09

Fund Managers

Madanagopal Ramu | 3-star rated FM

Fund Manager | 19 yrs Experience | 6 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 AMC-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 AMC-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

2 of 5 stars

Inv Philosophy

3 of 5 stars

Performance

3 of 5 stars

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