Sundaram Mutual will launch a new open-ended Bluechip Fund that will predominantly invest in large-cap bluechip stocks.

The new fund offer, which will be on a digital mode, opens on Thursday, September 17 and will close on September 30. The scheme will reopen for ongoing subscription and redemption from October 14.

The fund is suited for investors seeking capital appreciation over the medium-to-long term with lower volatility.

The scheme will have a diversified large-cap portfolio of 45-50 growth and value stocks without any sector bias.

The portfolio construction will be a blend of bottom-up stock-picking with top-down selection based on sectoral and macro trends. The fund has the option of investing up to 20 per cent of assets in midcaps.

Sunil Subramaniam, Managing Director, Sundaram Mutual said bluechip stocks are quality companies that are usually large and exhibit the stability and agility to perform across market cycles.

The challenging economic circumstances caused by the Covid pandemic has heightened the importance of reducing the volatility in an equity investor’s portfolio without giving up the prospect of inflation beating returns, he said.

Long-term growth prospects for India look quite positive in the context of demographic dividend and the business opportunities from an ageing China. “Foreign institutional investors are expected to continue investing in our markets thus imparting stability to the large-cap space,” said Subramaniam.

To enable smooth tranactions, Sundaram Mutual has created a distributor initiated platform. It has also launched a paperless eNACH (electronic mandate) feature to enable investors to seamlessly set up SIPs online.

The NFO will also be available through digital partners such as Paytm Money, Groww, INDWealth, 5Paisa, among others.

Sundaram Asset Management Company has assets under management of about ₹36,657 crore as on August-end with over 1.1 million active investors.