Sundarama Mid Cap Mutual Fund: As of April 2021, Sundaram Mutual Funds has given returns of more than 24 per cent. It can also be considered a better option in terms of diversification and allocation.
Traditional investments like FDs provide protection of capital but are not as beneficial in terms of returns. In such a situation, investors turn to the stock market. But the biggest problem with the stock market is that if investment decisions are not taken wisely, then heavy losses can be incurred. For such people, investing in mutual funds can prove to be a better option. You can invest a very small amount every month through SIP in Mutual Funds.
Keeping this in mind, today we are telling you about a special midcap mutual fund. The name of this fund is ‘Sundaram Midcap Mutual Fund’. In the last few years, it has proved to be a better option in terms of investment returns. The Net Asset Value of this mutual fund investing in midcap category companies is Rs 652.0931. Whereas till April 2021, a return of about 24.1 percent has been received. In this, you can also start investing through SIP of at least Rs 100.
Will help beat inflation
Mutual fund market experts say that if you stay in Sundaram Midcap Mutual Fund for 7 years or more, then it can beat inflation easily. This fund invests in medium-sized companies. However, these funds tend to fall more with market downturns as compared to funds that invest in large companies. In such a situation, you can earn good returns by investing in this fund, but in the meantime some ups and downs can be seen. You can invest in this through SIP.
How much tax will have to be paid?
There are two types of tax to be paid on investment in the stock market. Capital Gains Tax and then Dividend Tax. If you are selling mutual fund units after 1 year from the date of investment and have earned a profit of Rs 1 lakh or less during a financial year, then capital gains tax will not be payable. At the same time, if the return received gains of more than Rs 1 lakh, then tax will have to be paid at the rate of 10 percent. Whereas, if the mutual fund units are sold within 1 year, then tax is to be paid at the rate of 15 percent on the entire amount. The longer you hold, the longer you will not have to pay any tax.
Dividend is added to the income of the taxpayers and tax has to be paid according to their tax slab. If an investor earns more than Rs 5,000 by way of dividend in a financial year, the mutual fund house already deducts tax at the rate of 10 per cent.
What is its asset allocation
Talking about the asset allocation of Sundaram Mid Cap Mutual Fund, 97.50 percent of it is invested in equity and 2.5 percent is invested in cash and cash equity. A total of 62 stocks have been selected in this mutual fund. In this, the share of top 10 percent stocks is 27.11 percent, the share of top 5 percent is 14.70 percent and the share of top 3 stocks is 44.11 percent.
In which sectors to invest?
Talking about the sectors, this mutual fund has invested in Financial, Engineering, Services, Healthcare, Chemicals, Automobiles, Consumer Durables, FMCG, Technology, Metals, Construction, Textiles, Energy.
