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Company Overview & Investment objective

Company Overview

Sundaram Asset Management Company is the investment manager to Sundaram Mutual Fund. Founded 1996, Sundaram Mutual is a fully owned subsidiary of one of India's oldest NBFCs - Sundaram Finance Limited. Payment Details: The cheque/demand draft must be drawn in favour of “SMF LT MICROCAP TAX ADV SR -IV” and crossed A/c Payee only. Investors must write the Permanent Account Number/Folio Number on the reverse of the cheque / demand draft accompanying the application form. Sundaram Asset Management is pleased to bear DD charges as per rates of State Bank of India.
Purchases made through third party cheque(s) will not be accepted. In case of payment from a Joint Bank Account, the First holder in the
Application must be one of the Joint Account Holders of the Joint Bank Account. However the following are excluded from this restriction:
  1. Gifts to a minor from Parents/Grand Parents up to Rs50,000(for each Purchase /per SIP Installment)
  2. Employer’s Remittance of Payroll deduction on behalf of Employees
  3. Custodian‘s payment on behalf of an FII /Client

Investment objective

The investment objective of the scheme is to generate capital appreciation over a period of ten years by predominantly investing in equity and equity-related instruments of companies that can be termed as micro-cap and from income tax benefit available. For the purpose investment by the scheme ‘ Micro cap’ stock is defined as one whose market cap is equal to or lower than the 301stStock by market cap (after sorting the securities in the descending order of market capitalization) on the National Stock Exchange of India limited , Mumbai, at the time of investment. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved
Fund Facts
Name of the Scheme Sundaram Long Term Micro Cap Tax Advantage Fund Series IV. The NFO shall be kept open for at least 3 months in accordance with 2005 ELSS notification.
NFO Open date 27/09/2016
NFO Close date 20/03/2017
Nature of the scheme A Closed-End Equity Linked Saving Scheme
Fund Manager Mr. S Krishnakumar & Mr. Dwijendra Srivastava
Plans and Options Plans: Regular Plan and Direct Plan
Options: Growth, Dividend Payout. If investment option is not indicated the default option will be Growth.
All plans and options available for offer of the scheme will have the same portfolio
Direct Plan is only for investors who purchase /subscribe Units into the Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.
All categories of investors (whether existing or new Unitholders) as permitted to invest in this scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Stock Exchange Platform(s) and all other Platform(s) where investors’ applications for subscription of units are routed through Distributors}.
The expense ratio of Direct Plan shall be lower than that of the Regular Plan as it shall exclude distribution expenses, commission, etc. No commission for distribution of Units will be paid / charged under Direct Plan. The direct plan will also have a separate NAV.
Investors wishing to subscribe under Direct Plan of a Scheme will have to indicate “Direct Plan” against the Scheme name in the application form.
The following matrix will be applied for processing the applications in the Regular or Direct Plan:

Broker Code mentioned by the investor Plan mentioned by the investor Plan under which units will be allotted
Not mentioned Not mentioned Direct Plan
Not mentioned Direct Direct Plan
Not mentioned Regular Direct Plan
Mentioned Direct Direct Plan
Direct Not mentioned Direct Plan
Direct Regular Direct Plan
Mentioned Regular Regular Plan
Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan.
The Investment Manager shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load.
Growth option: Investors who prefer to accumulate the income and also do not have a need to receive the cash flow to meet specificfinancial goals can opt for the growth option. The income earned on the units will remain invested in the Scheme and will be reflected in the Net Asset Value. No dividend will be declared under this option. If units of this option are held as a capital asset for a period of at least 12 months from the date of allotment, income from such units will be treated as long-term capital gains for tax purposes.
Dividend option: Unit holders opting for the Dividend Option will only receive dividend. All unit holders whose names appear in the Register of the Scheme/Statement of beneficial owners maintained by the Depositories in the Dividend Option category as on the Record Date will be entitled to the dividend. The details of the Record Date for any Dividend that may be declared will be notified through the Stock Exchange where the Units are listed/ designated investor service centers/ newspapers.
Investors may note that where the Units are held in Demat Form, details of any change in address / bank details are to be provided to the respective Depository Participant for the purpose of dividend payment. The dividend payment will be subject to the distribution tax, if any, payable by the Mutual Fund as per the Income Tax Act or other laws in force. After the record date for distribution of dividend, the NAV per unit may decline to the extent of the payout and distribution tax, if any.
The Investment Manager shall dispatch the dividend cheque/warrant to unit holders within 30 days of declaration of dividend. The cheques/warrant will be drawn in the name of the sole/first holder and will be posted/mailed to the address indicated by the investor in the application form. Investors are required to provide bank account details - the name of the bank, branch and account number - in the application form. Dividend payment may also be done by Direct Credit subject to availability of necessary facility at each location. For further details please refer to the Application Form.
Minimum Application Amount For both Regular and Direct Plan Rs. 500/- and multiples of Rs. 500/- thereafter.
Benchmark Nifty Small Cap 100. The Nifty Small Cap 100 was launched on January 01, 2004 and is designed to measure the performance of small-cap companies listed at NSE Ltd. The composition of the aforesaid benchmark is such that it is most suited for comparing performance of the scheme. This is the only metric that is proximate in tracking the micro-cap category
Tenure 10 Years
Payment details The cheque/demand draft must be drawn in favour of "SMF LT MICROCAP TAX ADV SR -IV" and crossed A/c Payee only. Investors must write the Permanent Account Number/Folio Number on the reverse of the cheque / demand draft accompanying the application form. Sundaram Asset Management is pleased to bear DD charges as per rates of State Bank of India. Purchases made through third party cheque(s) will not be accepted. In case of payment from a Joint Bank Account, the First holder in the Application must be one of the Joint Account Holders of the Joint Bank Account. However the following are excluded from this restriction:
  1. Gifts to a minor from Parents/Grand Parents up to Rs50,000(for each Purchase /per SIP Installment)
  2. Employer’s Remittance of Payroll deduction on behalf of Employees
  3. Custodian‘s payment on behalf of an FII /Client
Tax Implications
This summary of tax implications is based on the current provisions of the applicable tax laws. This information is provided for general purpose only. In view of the individual nature of tax implications, investors are advised to refer the provisions of the Income-Tax Act and/or consult their investment/tax advisor with respect to the specific tax implications arising out of an investment in the scheme.
  • Income of Sundaram Mutual Fund: Exempt from tax
  • Dividend distribution: Tax free
  • Long-term capital gains (units held for more than 12 months qualify): Tax free.
  • Short-term capital gains (units held for less than 12 months qualify): 15%
  • Units of the Scheme are subject to lock-in period of three years.
  • Securities Transaction Tax: Payable at 0.001% on the value of units sold.
  • Tax deduction at source: Not applicable for persons resident in India; TDS applies on redemption proceeds payable to NRIs/FIIs.
  • Wealth tax/Gift Tax: Not payable
  • Investment upto Rs.1,50,000/- made by Individual / HUF (along with other prescribed investments) will only qualify for deduction from the gross total income under Section 80 C of the Income Tax Act, 1961 as per current tax laws.
  • The units under the Scheme is offered to the Investors for enabling them to avail the benefits under clause (xiii) of Sub-section (2) of Section 80C of the Income-tax Act, 1961 (the “Act”) read with “Equity Linked Saving Scheme, 2005” notified by notification No SO-1563 (E) dated 03/11/2005. Section 80C(2)(xiii) inter alia, provides as follows:
    “xiii) as subscription to any units of any Mutual Fund referred to in clause (23D) of section 10 or from the administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf”
In addition to Income tax, surcharge (on income tax) and cess (on total tax) will apply for companies and only cess will apply for others. The surcharge on income tax is payable by companies if their Total income exceeds Rs 1 crore and the rate will be 5% for Indian Companies and 2% for foreign Companies. Cess will be payable at 3% of total tax. Investors should also refer to the Statement of Additional Information available at www.sundarammutual.com for more but not exhaustive detail.
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