Sundaram Mutual Fund Trustee Company Sundaram ......Sundaram Select Mid Cap Sponsor Trustee Sundaram Finance Limited CIN: L65191TN1954PLC002429 Registered Office: 21, Patullos Road,

Sundaram Mutual Fundwww.sundarammutual.com

Mutual Fund Sundaram Mutual Fund

Trustee Company Sundaram Trustee Company Limited

Asset Management Company Sundaram Asset Management Company Limited

Address Sundaram Towers, I & II Floor, 46, Whites Road, Chennai - 600 014. India

SCHEME INFORMATION DOCUMENT

Contact No. 1860 425 7237 (India) E-mail: [email protected]+91 44 4083 1500 (NRI) SMS SFUND to 56767 (NRI): [email protected]

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India(Mutual Funds) Regulations 1996 as amended till date and filed with Securities and Exchange Board of India alongwith a Due Diligence Certificate from Sundaram Asset Management Limited. The units being offered for publicsubscription have not been approved or recommended by SEBI; SEBI has also not certified the accuracy oradequacy of the Scheme Information Document.

The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor oughtto know before investing. Investors should also ascertain about any further changes to this document after the date of thisDocument from the Mutual Fund/Investor Service Centres/Distributors/Brokers or visit www.sundarammutual.com.

Investors are advised to refer to the Statement of Additional Information (SAI) for details of Sundaram Mutual Fund,tax and legal issues and general information. The Statement of Additional Information is available atwww.sundarammutual.com and www.amfiindia.com

Statement of Additional Information is incorporated by reference and is legally a part of the Scheme InformationDocument. For a free copy of the current Statement of Additional Information, please contact your nearest InvestorService Centre or visit www.sundarammutual.com.

This Scheme Information Document is dated 31/05/2017.

Sundaram Select Mid CapAn open-end equity scheme

This product is suitable for investors who are seeking*

• long term capital growth

• Investment in diversified stocks that are generally termed as mid-caps

*Investors should consult their financial advisers if in doubt about whether

the product is suitable for them.

Riskometer

Moderate

LOW HIGH

ModeratelyHighMo

dera

tely

Low

Low

Hig

h

Investors understand that their principal will be at

Moderately High Risk

Terms of offer: NAVNew Fund Offer Opened on 24-06-2002New Fund Offer Closed on 19-07-2002Scheme Re-Opened for Ongoing Subscription/Redemption 30-07-2002

Sundaram Mutual Fundwww.sundarammutual.com 2

Sundaram Select Mid Cap

Sponsor

Trustee

Sundaram Finance LimitedCIN: L65191TN1954PLC002429Registered Office: 21, Patullos Road, Chennai 600 002Indiawww.sundaramfinance.in

Sundaram Trustee Company LimitedCIN: U65999TN2003PLC052058Corporate Office: Sundaram Towers, I & II Floor, 46 Whites Road, Chennai 600 014 IndiaPhone : 044 28583362 Fax : 044 28583156

Investment Manager

Sundaram Asset Management Company LimitedCIN: U93090TN1996PLC034615Corporate Office: Sundaram Towers, I & II Floor, 46 Whites Road, Chennai 600 014 IndiaPhone : 044 28583362 Fax : 044 28583156www.sundarammutual.com

If you wish to reach indicated telephone number from outside India, please use +91 or 0091 followed by 44 and the eight number.

SOBNo.9

SOBNo.10

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SponsorThe Sponsor of Sundaram Mutual Fund is SundaramFinance Limited. Sundaram Finance owns a 100% stake inSundaram Asset Management Company Limited andSundaram Trustee Company Limited. A detailedbackground of the sponsor-Sundaram Finance Limited-isavailable in the Statement of Additional Information, whichcan be accessed at www.sundarammutual.com.Name of the SchemeSundaram Select Mid Cap.Scheme Type (Fundamental Attribute)An open-end equity scheme.Offer PriceNAV.Investment Objective (Fundamental Attribute)The objective of the scheme is to achieve capitalappreciation by investing in diversified stocks that aregenerally termed as mid-caps.No Guarantee: Investors are neither being offered anyguaranteed/indicated returns nor any guarantee onrepayment of capital by the Schemes. There is also noguarantee of capital or return either by the mutual fund orby the sponsor or by the Asset management Company.

Indicative Asset Allocation (Fundamental Attribute)

Scheme/Instrument % of the investible Risk funds (indicative) profile

Equity and equity-related instruments (includinginvestment in derivatives): 75 % to 100% HighCash, cash equivalents, money market instruments Not exceeding 25% LowThe Scheme may invest up to 35% of the net assets inoverseas securities.

Pending deployment in terms of the investment objective,funds may be invested in short-term deposits withscheduled commercial banks in accordance withapplicable SEBI guidelines. The Scheme Shall not invest inrepo in Corporate Bond.Exposure to derivatives will be limited to 50% of the netasset value of the Scheme at the time of transaction.In accordance with SEBI Circular No. Cir/ IMD/ DF/ 11/2010 dated August 18, 2010, the cumulative grossexposure in equity, derivatives and debt shall not exceed100% of the net assets. Same security wise hedge positionhave not been considered in computing gross exposure.Exposures in overseas securities may be taken subject tothe applicable guidelines/policies of SEBI and RBI.Changes in Investment Pattern: Subject to SEBIRegulations, the asset allocation pattern indicated abovemay change from time to time, keeping in view the marketconditions, market opportunities, applicable Regulationsand political & economic factors.

It must be clearly understood that the percentage stated

above are only indicative and not absolute. Theseproportions can vary substantially depending upon theperception of the Investment Manager; the intention beingat all times to seek to protect the interests of Unit Holders.Such changes in investment pattern will be for a short-termand for defensive consideration only.

Liquidity (Fundamental Attribute)Purchase / Switch In: On any business day, at NAV.Redemption / Switch Out: On any business day at NAV,

subject to exit load, if any. The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date ofredemption.Transaction Facility through Stock ExchangeA Unitholder may subscribe (One–time & Systematicinvestments) and redeem units of the eligible Plan(s) andOption(s) under the Scheme through the StockExchange(s) infrastructure of NSE MFSS and BSE Starplatform. Please refer the segment on International SecurityIdentification Number (ISIN) for the eligible Plan(s) andOption(s) available for transactions.BenchmarkFor Investments in Indian securities: S&P BSE Mid CapIndex. For Investment in overseas securities: MSCIEmerging Markets IndexFor more details, please refer the segment on Benchmark. Fund ManagersS. Krishnakumar.

Shiv Chanani, is the dedicated fund manager forinvestments in overseas securities.

The Trustee reserves the right to change the fundmanagers of the scheme.

Investment StrategyThe objective of the Scheme is to get capital appreciationby investing in stocks whose market capitalization istermed as ‘mid cap’.In normal circumstances, the Fund will stay invested upto100% of investible resources in equities, equity-relatedinstruments and / or derivatives. It will hold a minimum of 25stocks at any point of time. We define ‘mid-cap’ as a stockwhose market capitalization shall not exceed the marketcapitalization of the 50th stock (after sorting the securitiesin the descending order of market capitalization) listed withThe National Stock Exchange of India Limited.The Executive Committee of the Investment Manager may,at its discretion define the lower limit of the marketcapitalisation of mid-cap stocks, and may also fix thepercentages within which the market capitalisation couldbe varied from the limits.All the stocks in the portfolio will be verified against thiscriterion on the last working day of every calendar quarter.If the stock fails to fulfill the above criterion the fundmanager will take steps to liquidate the holdings within thenext quarter.


Sundaram Select Mid CapHighlights & Scheme Summary

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The focus of this Scheme is to provide to investors areasonably diversified portfolio of mid-cap stocks. As thereis no fixed thumb rule as to what constitutes a mid-capstock, the fund is fixing the universe through the criterionmentioned above. These stocks generally are more volatilethan the large-cap stocks and as such potentially can offerhigher returns. Many of the large cap stocks today have indeed started asmid caps a few years ago and rewarded the shareholderssubstantially higher returns than the market. This howeverdoes not indicate the future performance of the Scheme. Ifthe stocks are more volatile, downward risk is also higher.The Fund pursues a strategy where it tries to captureemerging stocks through its study of industry andmanagement. Towards this it will follow bottom-upapproach to a large extent and top-Down to a little extentwhere necessary. Thematically, investments could be in macro themes, whichcut across various industries and sub sectors(restructuring, infrastructure spending, skilled labour, toname a few). Within such a framework, the emphasis will beon investing in companies with quality management,unique business strengths, sustainable medium/long termgrowth and reasonable valuations.The Investment Manager has a research set up that worksto identify investment opportunities through continuousresearch on sectors and companies. The analysis focuseson the past performance and future prospects of thecompany and the business, financial health, competitiveedge, managerial quality and practices, minorityshareholder interests and transparency. Companies thatadequately satisfy the prescribed criteria are included inthe portfolio. The weights of individual companies in theportfolio will be based on their upside potential to downsiderisk.The Investment Manager will keep in mind the InvestmentObjective of the Scheme and the applicable Regulations.Risk FactorsPotential investors should rely solely on the informationcontained in this Scheme Information Document. Theyshould read the risk factors presented in this documentthough the list is no way exhaustive. The Trustee acceptsno responsibility for any unauthorised information.Summary of Indicative Scheme-Specific RisksLack of liquidity at times and volatility.Change in Government policy in general and changes intax benefits applicable to mutual funds may impact thereturns to Investors. Tax-free status for long-term capitalgains and dividend will depend on the fund investing morethan 65% in equity to qualify in accordance with provisionsof the Income-Tax Act. If and to the extent, the portfolioincludes overseas stocks, investors will be exposed tocountry risk, currency risk, geo-political risk, legalrestrictions and regulation changes in geography otherthan India, to name a few.Dividend PolicyThe Trustee Company reserves the right to distribute

dividend subject to availability of distributable surplus. Anydividend distribution and frequency of dividend distributionwill be entirely at the discretion of the trustee.Transparency: NAV & Portfolio DisclosureNAV will be determined and published on every businessday, except in special circumstances as mentioned underthe section titled as Net Asset Value, in Part III. TheInvestment Manager will send the NAV Information forpublication in two daily newspapers having circulation allover India and update on Investment Manager’s website(www.sundarammutual.com). The Investment Managershall also update the NAVs on the website of Association ofMutual Funds in India – AMFI www.amfiindia.com) before9.00 p.m. every business day. In case of any delay, thereasons for such delay would be explained to AMFI by thenext day. If the NAVs are not available beforecommencement of working hours on the following day dueto any reason, the Fund shall issue a press releaseproviding reasons and explaining when the Fund would beable to publish the NAVs.Further transparency will be maintained through fact sheetson a monthly basis.Applicable NAVPursuant to SEBI Circulars SEBI/IMD/CIR No. 11/142521/08dated October 24, 2008 and CIR/IMD/DF/19/2010 datedNovember 26, 2010 read along with the circularCIR/IMD/DF/21/2012 dated September 13, 2012, theapplicable NAV shall be as follows:• For subscription/redemption/switch request received

before 3.00 pm on any business day, the closing NAV ofthe day of receipt of application.

• For subscription/redemption/switch request receivedafter 3.00 pm on any business day, the closing NAV ofnext business day after the receipt of application.

For allotment of units in respect of purchase of units /switch from other schemes for an amount of Rs. 2 lakhsand above:In respect of applications for purchase of units / switch fromother schemes of an amount equal to or more than Rs. 2lakhs, the closing Net Asset Value (NAV) of the BusinessDay on which the funds are available for utilization shall beapplicable provided that:(i) Application for purchase / switch-in is received before

the applicable cut-off time.(ii) Funds for the entire amount of subscription / purchase

/ switch-in as per the application are credited to thebank account of the scheme before the cut-off time.

(iii)The funds are available for utilization before the cut-offtime without availing any credit facility, whether intra-dayor otherwise.

Where application is received after the cut-off time on a dayand the funds are available for utilization without availingany credit facility, whether intra-day or otherwise, on thesame day, the closing NAV of the next Business Day shallbe applicable.Multiple applications / transactions by an investor shall beaggregated as per conditions mentioned below and



closing NAV of the day on which funds for respectiveapplication / transaction are available for utilization will beapplied where the aggregated amount of investment is forRs.2.00 lakhs and above:1. All transactions received on the same business day (as

per Time stamp rule).2. Transactions shall include purchases, additional

purchases and excludes Switches.3. Aggregation shall be done on the basis of

Investor/s/Unit Holder/s PAN. In case of joint holding,transactions with similar holding structures shall beaggregated.

4 All transactions will be aggregated where investorholding pattern is same as stated in point no. (3) above,irrespective of whether the amount of the individualtransaction is above or below Rs. 2 lakhs.

5. Only transactions in the same scheme shall beaggregated. This will also include transactions at Plan /option level (Regular Plan, Direct Plan, Dividend option,Growth option, etc.).

6. Transactions in the name of minor received throughguardian will not be aggregated with the transaction inthe name of same guardian.

The Investment Manager reserves the right to change ormodify any of the conditions related to aggregation oftransactions in line with directives issued by Securities andExchange Board of India or AMFI from time to time.For subscription, the applicable NAV will be as indicatedonly for local cheque or demand draft payable at par in theplace of receipt. If the application for subscription isaccompanied by an outstation cheque or demand draft notpayable at par in the place of receipt, closing NAV of theday on which the cheque or DD is credited will be theapplicable NAV.Switch-in shall be treated as subscription request. Switch-out shall be treated as redemption request.While subscribing to an option under Direct Plan whichdoes nothave a NAV, units shall be allotted based on the NAV ofcorresponding option/ sub-option under the Regular Plan.In case of non-availability of NAV in the correspondingoption / sub-option (due to NIL investors under theoption/sub-option) in the Regular plan, the applicable NAVshall be that of the corresponding Growth Option under theRegular Plan.Plans/OptionsRegular Plan & Direct Plan Growth & Dividend (Pay Out, Sweep and Reinvestment).Pursuant to SEBI circular CIR/IMD/DF/21/2012 datedSeptember 13, 2012, subscription, including new SIP andSTP, registrations in the Institutional Plan (including optionsunder the plan) has been discontinued with effect fromOctober 01, 2012. Also, from November 01, 2012, thedividends declared (irrespective of the amount) underDividend Reinvestment Option of the discontinuedPlan(s)/Option(s) shall be reinvested into thecorresponding Option under the Single Plan of the

Scheme, i.e. Regular Plan. All plans and options available for offer under the schemeshall have a common portfolio. If no option is indicated, the default option will be Growth.If an investor chooses the Dividend Option but fails toindicate a sub-option, the default sub-option shall beDividend Sweep, when the dividend payable is Rs. 1,000or more and Dividend Reinvestment in other cases.

Direct Plan was introduced in the scheme with effect fromJanuary 01, 2013. It is only for investors who purchase/subscribe Units into the Scheme directly with the Fund andis not available for investors who route their investmentsthrough a Distributor.

All categories of investors (whether existing or newUnitholders) as permitted to invest in this scheme areeligible to subscribe under Direct Plan. Investments underDirect Plan can be made through various modes offered bythe Fund for investing directly with the Fund {except StockExchange Platform(s) and all other Platform(s) whereinvestors’ applications for subscription of units are routedthrough Distributors}.

The expense ratio of Direct Plan shall be lower than that ofthe Regular Plan. No commission for distribution of Unitswill be paid / charged under Direct Plan. The direct planwill also have a separate NAV.Investors wishing to subscribe under Direct Plan of aScheme will have to indicate “Direct Plan” against theScheme name in the application form. In the following cases, the applications shall be processedunder the Direct Plan:

1. Distributor code is mentioned in the application form,but “Direct Plan” is indicated against the Scheme name

2. Where application is received for Regular Plan withoutDistributor code or the word "Direct" is mentioned in theARN column.

3. Neither the plan nor the distributor code is mentionedin the application form

In the following cases, the applications shall be processedunder the Regular Plan:1. The application form contains the distributor code but

does not indicate the plan.2 Where application is received for Regular Plan with

Distributorcode.

International Security Identification Number (ISIN)The Investor has an option to hold the units either in thephysical or demat mode in accordance with his/her ownchoice. International Security Identification Numbers (ISIN)in respect of the plans/options of the schemes have beencreated in National Securities Depository Limited (NSDL)and Central Depository Services Limited (CDSL).Thedetails of ISIN are as followsRegular Plan Dividend Payout INF903J01181Regular Plan Dividend Re-Investment INF903J01199Regular Plan Growth INF903J01173



Institutional Dividend Payout INF903J01215Institutional Dividend Re-Investment INF903J01223Institutional Growth INF903J01207Direct Plan Dividend Payout INF903J01MH7Direct Plan Growth INF903J01MJ3Direct Plan Dividend Reinvestment INF903J01MI5With effect from October 01, 2012, subscription underInstitutional Plan in respect of all the schemes covered inthis document has been discontinued. The ISINs as mentioned in the table above are alsoavailable for subscription and redemption in NSE MFSSand BSE Star platform except all the plans/options underDirect Plan and dividend reinvestment option of SundaramTax Saver. Only redemption is allowed under dividendreinvestment option of Sundaram Tax Saver with effect fromMarch 11, 2015 and units under Instutional Plan in theexchange platform with effect from October 01, 2012. In case the unitholder desires to hold the units inDematerialized / Rematerialized form at a later date, therequest for conversion of units held in non-DEMAT form intoDEMAT (electronic form) or vice-versa should be submittedalong with a DEMAT/REMAT request form to theirDepository Participants.MF Utility PlatformAll financial and non-financial transactions pertaining toSchemes of Sundaram Mutual Fund can be done throughMFU either electronically on www.mfuonline.com as andwhen such a facility is made available by MFUI orphysically through the authorized Points of Service (“POS”)of MFUI with effect from the respective dates as publishedon MFUI website against the POS locations. The list of POSof MFUI is published on the website of MFUI atwww.mfuindia.com as may be updated from time to time.The Online Transaction Portal of MFU i.e.www.mfuonline.com and the POS locations of MFUI will bein addition to the existing Official Points of Acceptance(“OPA”) of the AMC. The uniform cut-off time as prescribedby SEBI and as mentioned in the SID / KIM of respectiveschemes shall be applicable for applications received onthe portal of MFUI i.e. www.mfuonline.com. However,investors should note that transactions on the MFUI portalshall be subject to the eligibility of the investors, any terms& conditions as stipulated by MFUI / Mutual Fund / the AMCfrom time to time and any law for the time being in force.Load StructureEntry Load: Nil. In accordance with SEBI Regulation, therewill be no entry load for investments in the Scheme. Thisshall apply to new investment in the Scheme, additionalpurchase, switch-in, systematic investment plan,systematic transfer plan, dividend re-invested, dividendsweep-in, bonus units and any other form of investment thatmay be introduced as a facility. The upfront commission todistributor (ARN holder) will be paid by the investor directlyto the distributor, based on his assessment of variousfactors including the service rendered by the distributor.The distributor (ARN holder) will disclose all thecommissions (in the form of trail commission or any othermode) payable to them for the different competing Scheme

of various mutual funds from amongst which the Scheme isbeing recommended to the investor.Exit Load: For redemption within 12 months from the dateof allotment - 1%. For redemption on or after 12 months from the date ofallotment - Nil.Load structure is indicated as a percentage of NAV.In accordance with SEBI Regulation, of the exit load /contingent deferred sales charge that is charged to theinvestor, a maximum of 1% of the redemption proceedsshall be maintained in a separate account to paycommissions to the distributor and for meeting othermarketing and selling expenses. Any amount in excess of1% of the redemption value charged to the unit holder asexit load / contingent deferred sales charge shall becredited to the respective Scheme immediately.Pursuant to SEBI Circular CIR/IMD/DF/21/2012 datedSeptember 13, 2012 read with notification No. LAD-NRO/GN/2012-13/17/21502 dated September 26, 2012service tax on exit load, if any, shall be paid out of the exitload proceeds and exit load net of service tax, if any, shallbe credited to the scheme with effect from October 01,2012. Investors are requested to note that exit load isinclusive of Service Tax at applicable rates as prescribedby Ministry of Finance from time to time.

Applicability(a) Bonus units and units issued on reinvestment of

dividend shall not be subject to exit load.(b)Prescribed exit load will be applicable for switch out and

every instalment under a Systematic Transfer Plan andSystematic Withdrawal Plan. The period indicated forexit load shall be reckoned from the date of allotment.

(c) Switch of existing investments from Regular Plan toDirect Plan where the transaction has been receivedwithout broker code in the Regular Plan shall not besubject to exit load.However, any subsequent switch / redemption of suchinvestment shall be subject to exit load based on theoriginal date of investment in the Regular Plan and notfrom the date of switch into Direct Plan. (effective fromApril 01, 2013)

(d) In case of switch of investments from Regular Plan toDirect Plan received with broker code in the RegularPlan, the exit load as applicable to redemption of unitsunder the respective scheme(s) shall apply.However, any subsequent switch-out or redemption ofsuch investment shall not be subject to exit load.(effective from April 01, 2013)

(e) In case of switch of investments from Direct Plan toRegular Plan, no exit load shall be levied. However, anysubsequent switch-out or redemption of suchinvestment shall be subject to exit load based on theoriginal date of investment in the Direct Plan and notfrom the date of switch into Regular Plan. (effective fromApril 01, 2013)

(f) Investors wishing to transfer their accumulated unit



SOBNo.16

balance held under discontinued plans and RegularPlan (through lumpsum / systematic investments madewith Distributor code) to Direct Plan can switch theirinvestments (subject to applicable Exit Load, if any) toDirect Plan. However, any subsequent switch-out orredemption of such investment shall not be subject toexit load. (effective from April 01, 2013)Investors wishing to transfer their accumulated unitbalance held under discontinued plans and RegularPlan (through lumpsum / systematic investments madewithout Distributor code) to Direct Plan can switch theirinvestments, without Exit Load, to Direct Plan. However,any subsequent switch / redemption of such investmentshall be subject to exit load based on the original dateof investment in the Regular Plan / Discontinued Plansand not from the date of switch into Direct Plan.(effective from April 01, 2013)

Switches shall be subject to completion of lock-in period, ifany, under the respective scheme.The Board of Trustee reserves the right to prescribe ormodify the exit load structure with prospective effect,subject to a maximum as prescribed under SEBIRegulation.Details of the modifications will be communicated in thefollowing manner: • Addendum detailing the changes will be attached or

incorporated to the SID and Key InformationMemorandum. The addendum will become an integralpart of this Scheme information document.

• The change in exit load structure will be notified by asuitable display at the Corporate Office of the SundaramAsset Management and at the Investor Service Centresof the registrar.

• A public notice shall be given in one English dailynewspaper having nation-wide circulation as well as ina newspaper published in the language of region wherethe Head Office of the Mutual Fund is situated.

The introduction/modification of exit load will be stampedon the acknowledgement slip issued to the investors onsubmission of an application form and will also bedisclosed in the account statement issued after theintroduction of such exit load.Investors are requested to ascertain the applicable exitload structure prior to investing.Transaction Charge to Distributors1 The Distributor would be allowed to charge the Mutual

Fund Investor a Transaction Charge where the amountof investment is Rs. 10,000/-and above on a persubscription basis

2 For an investor other than First Time Mutual FundInvestor, the Transaction Charge allowed will be Rs.100/- per subscription of Rs. 10,000/- and aboveFor a First Time Mutual Fund Investor, the TransactionCharge allowed will be Rs. 150/- per subscription of Rs.10,000/- and above

3 The Transaction Charge, where applicable based on theabove criteria, will be deducted by the Investment

Manager from the subscription amount remitted by theInvestor and paid to the distributor; and the balance(net) amount will be invested in the scheme. Thus unitswill be allotted against the net investment.

4 No Transaction charges shall be levied:a) Where the distributor/agent of the investor has not

opted to received any Transaction Charges;b) Where the investor purchases the Units directly from

the Mutual Fund;c) Where total commitment in case of SIP / Purchases

/ Subscriptions is for an amount less than Rs.10,000/-;

d) On transactions other than purchases / subscriptionsrelating to new inflows.Switches / Systematic Transfers / Allotment of BonusUnits / Dividend reinvestment Units / Transfer /Transmission of units, etc will not be considered assubscription for the purpose of levying thetransaction charge.

e) Purchases / subscriptions carried out through stockexchange(s).

The distributors can opt-in / opt-out of levying transactioncharges based on ‘type of the Product/Scheme’ instead of‘for all Schemes’. Accordingly, the transaction chargeswould be deducted from the subscription amounts, asapplicable.However, the distributor shall not be able to opt-in or opt-out at the investor-level i.e. a distributor shall not chargeone investor and choose not to charge another investor.The transaction charges are in addition to the existingsystem of commission permissible to the Distributors. Onsubscription through Distributors, the upfront commission ifany will be paid directly by the Investors to the Distributorby a separate cheque based on their assessment ofvarious factors including the service rendered by theDistributor.Any circular/clarification issued by SEBI/AMFI in this regardwill automatically become applicable and will beincorporated in the SID/SAI/KIM wherever applicable.Initial Issue ExpensesNot applicable as this document covers an existingScheme.Annual Fee & Recurring Expenses (FundamentalAttribute)The total annual recurring expenses of the Scheme,excluding deferred revenue expenditure written off, issue orredemption expenses, but including the investmentmanagement/advisory fee that can be charged to thescheme shall be within the limits specified in Regulation 52of SEBI (Mutual Funds) Regulations.Details are available in Part IV of the Scheme InformationDocument. The Investment Management Fees and otherrecurring expenses will be calculated on the basis of dailynet assets.Repatriation basisNRIs, registered FIIs and registered sub account of FIIsmay invest in the Scheme only on full repatriation basis,subject to necessary RBI approvals, if any.



Minimum Investment Amount For Both Regular Plan & Direct Plan. First investment Rs5,000 and multiples of Rs 1 thereafter and for additionalpurchase Rs 500 & multiples of Rs 1 thereafter. In the caseof purchases through SIP, the minimum installment amountshall be Rs 1000, Rs 750 and Rs 250 respectively forweekly (processed on Wednesday’s/next Business Day ifWednesday is not a Business Day), quarterly and monthlyfrequency respectively and in multiples of Rs 1 there.after.Pursuant to SEBI circular CIR/IMD/DF/21/2012 datedSeptember 13, 2012, the instalments of SIPs registeredunder the discontinued Plan(s)/Option(s) shall beprocessed in the corresponding option under Single Plan ofthe Scheme, i.e. Regular Plan with effect from November01, 2012Instalments of SIPs registered with the broker code underRegular Plan and discontinued plan(s) on or beforeDecember 31, 2012 shall continue to be processed underRegular Plan.Instalments of SIPs registered without the broker codeunder Regular Plan and discontinued plan(s) on or beforeDecember 31, 2012 shall be processed in thecorresponding option under Direct Plan from January 01,2013.Investors who had registered for SIP facility with distributorcode on or before December 31, 2012 and wish to continueto the SIP instalments under the Direct Plan shall make awritten request to Sundaram Mutual Fund in this behalf. Thefund will take at least 21 working days to process suchrequests. Intervening instalments shall continue to beprocessed under the Regular Plan.Minimum Redemption Limit

The minimum amount for redemption/switch out will be: Regular & Direct Plan: Rs.500 or 50 units or accountbalance, whichever is lower. • STP (Weekly-processed onWednesday’s/next Business Day if Wednesday is not aBusiness Day): Rs 1000 • STP (Monthly): Rs 250 • STP(Quarterly): Rs 750 and any amount thereafter. InstitutionalPlan: Rs.5,000/- and any amount thereafter.Pursuant to SEBI circular CIR/IMD/DF/21/2012 datedSeptember 13, 2012, the instalments of STPs registered forsystematic transfer from this scheme to any other schemeof Sundaram Mutual under Regular Plan and discontinuedPlan(s) shall be processed under the Single Plan in thecorresponding option of the respective target scheme witheffect from November 01, 2012Instalments of STPs registered with the broker code underRegular Plan and discontinued plan(s) on or beforeDecember 31, 2012 shall be processed under Single Planin the corresponding option of the respective targetscheme.Instalments of STPs registered without the broker codeunder Regular Plan and discontinued plan(s) on or beforeDecember 31, 2012 shall be processed under Direct Planin the corresponding option of the respective targetscheme from January 01, 2013.

Investors who had registered for STP facility with distributorcode on or before December 31, 2012 and wish to continueto the STP instalments under the Direct Plan shall make awritten request to Sundaram Mutual Fund in this behalf. Thefund will take at least 21 working days to process suchrequests. Intervening instalments shall continue to beprocessed under the single Plan of the respective targetscheme.Valuation of AssetsThe assets of the Scheme will be valued in conformity withSEBI Regulations / Guidelines as applicable from time totime. For more details regarding valuation policy, pleaserefer the Statement of Additional Information or the websiteof the Investment Manager www.sundarammutual.comIllustrative List of Tax ImplicationsThis summary of tax implications is based on the currentprovisions of the applicable tax laws. This information isprovided for general purpose only. In view of the individualnature of tax implications, investors are advised to refer theprovisions of the Income-Tax Act and/or consult theirinvestment/tax advisor with respect to the specific taximplications arising out of an investment in the scheme.Unit holders should be aware that the relevant fiscal rulesand their interpretation might change. As is the case withany investment, there can be no guarantee that the taxposition or the proposed tax position prevailing at the timeof investment in the Scheme will endure indefinitely.• Income of Sundaram Mutual Fund: Exempt from tax• Dividend distribution: Not Applicable• Long-term capital gains (units held for more than 12

months qualify): Tax free.• Short-term capital gains (units held for less than or

equal to 12 months qualify): 15% • 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 proceedspayable to NRIs/FIIs.

• Wealth tax/Gift Tax: Not ApplicableIn addition to Income tax, surcharge (on income tax) andcess (on total tax) will apply. The surcharge at the rate of15% is levied in case of individual/HUF unit holders wheretheir income exceeds Rs. 1 crores. In case of Domesticcorporate unit holders, surcharge @ 7% is levied whereincome exceeds Rs. 1 crores but less than Rs. 10 croresand @ 12% where income exceeds Rs. 10 crores. For thecompany other than domestic company, surcharge @ 2%is levied where income exceeds Rs. 1 crores but less thanRs. 10 crores and @ 5% where income exceeds Rs. 10crores. Cess will be payable at 3% of total tax.Investors should also refer to the Statement of AdditionalInformation available at www.sundarammutual.com formore but not exhaustive detail.Information AccessInvestors may access NAV, performance charts, portfoliodetails, Scheme features, fact sheet, product note/guide,offer document, FAQs and any relevant Scheme-specificmaterial on www.sundarammutual.com.



Investor Relations ManagerRavi SHead- Customer Services Sundaram Asset Management Company LimitedSundaram Towers, No. 46, Whites Road, Royapettah, Chennai- 600 014. Fax: (044) 28569808 Contact No. 1860 425 7237 (India) +44 49057300 (NRI) Email us at : [email protected] (NRI): [email protected]

Standard Chartered Bank, Mumbai registered with SEBI,vide Registration No IN/CUS/006, has been appointedcustodian for the securities in the Scheme. Theresponsibilities of the custodian include:• to keep in safe custody all the securities and instrumentsbelonging to the Scheme;

• to ensure smooth inflow/outflow of securities andinstruments as and when necessary in the best interestof the investors;

• to ensure that the benefits due on the holdings arereceived and

• to be responsible for the loss or damage to the securitiesdue to negligence on its part or on the part of itsapproved agents.

The Trustee reserves the right to appoint any othercustodian(s) approved by SEBI.In addition a foreign custodian may also be appointed foroverseas securities/assets.Fund Accountant: Fund Accounting has been operationally outsourced to

Sundaram BNP Paribas Funds Services Limited Registrar and Transfer Agents SEBI Registration No. INR 000004066Unit: Sundaram Mutual Fund Central Processing Center,23, Cathedral Garden Road, Nungambakkam, Chennal-600034. Tel: 044 - 2830 9100

The activities inter-alia include:i. Record accounting entries to the fund.ii. Reconcile account balances for the fund.iii. Establish policies and procedures to assure proper

fund accounting.iv. Maintain proper documentation. v. Update computer system records. vi. Perform fund valuations of unit trusts and custodian

accounts. vii. Prepare schedules and tailor-made client reports. viii. Coordinate preparation of annual accounts and audit

unit trusts and custodian accounts. However, the Fund administration part would continue tobe handled by the Operations Department of theInvestment Manager.

RegistrarSundaram BNP Paribas Fund Services Limited, Registrar and Transfer Agents, SEBI Registration No. INR 000004066Unit: Sundaram Mutual Fund,Central Processing Center, 23, Cathedral Garden Road, Nungambakkam, Chennal-600034. Tel: 044 - 2830 9100The Trustee reserves the right to appoint any other entityregistered with SEBI as the registrar.Information to Unit HoldersOn acceptance of a valid application for subscription, unitswill be allotted and a confirmation specifying the number ofunits allotted by way of email and/or SMS within 5 BusinessDays from the date of receipt of transaction request will besent to the Unit holder's registered e-mail address and/ormobile number. Subject to SEBI Regulations, Statement ofAccounts will be sent to those unitholders whose registeredemail address / mobile number is not available with theMutual Fund, unless otherwise required. Money would berefunded in respect of applications rejected, within fivebusiness days from the closure of the NFO period. TheScheme shall be available for trading within five businessdays of allotment.Consolidated Account Statement:1) A consolidated account statement (CAS)^ for each

calendar month to the Unit holder(s) in whose folio(s)transaction**(s) has/have taken place during themonth shall be sent on or before 10th of thesucceeding month by mail/e-mail. ^Consolidated Account Statement (CAS) shallcontain details relating to all the transactions** carriedout by the investor across all schemes of all mutualfunds during the month and holding at the end of themonth including transaction charges paid to thedistributor, if any. **The word ‘transaction’ shall include purchase,redemption, switch, dividend payout, dividendreinvestment, systematic investment plan, systematicwithdrawal plan, systematic transfer plan and bonustransactions.

2) In case of a specific request received from the Unitholders, the AMC/Mutual Fund will provide theaccount statement to the investors within 5 BusinessDays from the receipt of such request.

3) In case the mutual fund folio has more than oneregistered holder, the first named Unit holder shallreceive the CAS/account statement.

4) For the purpose of sending CAS, common investorsacross mutual funds shall be identified by theirPermanent Account Number (PAN).

5) The CAS shall not be received by the Unit holders forthe folio(s) not updated with PAN details. The Unitholders are therefore requested to ensure that thefolio(s) are updated with their PAN.

6) Further, the CAS detailing holding across all schemes



of all mutual funds at the end of every six months (i.e.September/ March), shall be sent by mail/e-mail on orbefore 10th day of succeeding month, to all such Unitholders in whose folios no transaction has taken placeduring that period. The half yearly CAS will be sent bye-mail to the Unit holders whose e-mail address isavailable, unless a specific request is made to receivein physical. Such Consolidated Account Statementshall reflect the latest closing balance and value of theUnits prior to the date of generation of the accountstatement.

7) The statement of holding of the beneficiary accountholder for units held in DEMAT will be sent by therespective DPs periodically.

8) Pursuant to SEBI circular CIR/MRD/DP/31/2014 datedNovember 12, 2014, investors having Mutual Fundinvestments and holding securities in Demat accountshall receive a single Consolidated AccountStatement (CAS) from the Depository. Consolidationof account statement shall be done on the basis ofPermanent Account Number (PAN). In case ofmultiple holding, it shall be PAN of the first holder andpattern of holding. The CAS shall be generated on amonthly basis. If there is any transaction in any of theDemat accounts of the investor or in any of his mutualfund folios, depositories shall send the CAS within tendays from the month end. In case, there is notransaction in any of the mutual fund folios and demataccounts then CAS with holding details shall be sentto the investor on half yearly basis.

9) Pursuant to SEBI circularSEBI/HO/IMD/DF2/CIR/P/2016/89 dated September20, 2016, the following points have been incorporatedto increase the transperancy of information to theinvestors.

A Each CAS issued to the investors shall also providethe total purchase value / cost of investment in eachscheme.

B Further, CAS issued for the half-year (endedSeptember/ March) shall also provide: (i) The amount of actual commission paid by

AMCs/Mutual Funds (MFs) to distributors (inabsolute terms) during the half-year periodagainst the concerned investor’s totalinvestments in each MF scheme. The term‘commission’ here refers to all direct monetarypayments and other payments made in the formof gifts / rewards, trips, event sponsorships etc.by AMCs/MFs to distributors. Further, a mentionmay be made in such CAS indicating that thecommission disclosed is gross commission anddoes not exclude costs incurred by distributorssuch as service tax (wherever applicable, as perexisting rates), operating expenses, etc.

(ii) The scheme’s average Total Expense Ratio (inpercentage terms) for the half-year period foreach scheme’s applicable plan (regular or director both) where the concerned investor hasactually invested in.

C. Such half-yearly CAS shall be issued to all MFinvestors, excluding those investors who do not haveany holdings in MF schemes and where nocommission against their investment has been paid todistributors, during the concerned half-year period.

Any circular/clarification issued by SEBI in this regard willautomatically become applicable and shall beincorporated in the SID/SAI/KIM wherever applicable. The Investment Manager shall publish the portfolio of thescheme as of March 31 and September 30 of every yearbefore the expiry of one month from the close of each halfyear. The portfolio shall be published in the SEBI-prescribed format in one national English daily newspaperand in a newspaper in the language of the region wherethe Head Office of the Mutual Fund is situated. TheInvestment Manager shall disclose the portfolio (along withISIN) as on the last day of the month for all the schemes inits website www.sundarammutual.com on or before thetenth day of the succeeding month in a user-friendly anddownloadable format, preferably a spreadsheet. Sundaram Mutual fund shall make half yearly disclosures ofunaudited financial results on its websitewww.sundarammutual.com in the prescribed format withinone month from the close of each half year, i.e. on 31stMarch and on 30th September. The half- yearly unauditedfinancial results shall contain details as specified in TwelfthSchedule and such other details as are necessary for thepurpose of providing a true and fair view of the operationsof the mutual fund. In addition, Sundaram Mutual Fund shallpublish an advertisement disclosing the hosting of suchfinancial results in its website, in atleast one English dailynewspaper having nationwide circulation and in anewspaper having wide circulation published in thelanguage of the region where the Head Office of Sundarammutual fund is situated.An abridged Scheme-wise annual report shall be only e-mailed to all unit holders, whose e-mail address is availablewith the Fund, within four months from the date of closureof the relevant accounting year; unit holders who have notprovided an email address/who have requested for aphysical copy shall receive a copy by post. The link ofScheme-wise annual reports or abridged summary thereofwill also be prominently displayed atwww.sundarammutual.com

Table of Contents

Summary of comparable schemes 11Part I Risk Factors 12Definitions 17Abbreviations & Interpretation / Due Diligence 18Part II Information about the Scheme 19Part III Units & Offer 35Part IV Fees, Expenses, Load Structure 53/54Part V Rights of Unit Holders 55Part VI Penalties & Pending Litigation 55Customer Care Centres 56





Investment Objective

Sundaram Select Mid Cap: The objective of the scheme is to achieve capital appreciation by investing in diversified

stocks that are generally termed as mid-caps.

Sundaram Equity Multiplier: The objective of the scheme would be to seek capital appreciation by investing in equity &

equity related instruments.

Sundaram S.M.I.L.E (Small and Medium Indian Leading Equities Fund): To primarily achieve capital appreciation by

investing in diversified stocks that are generally termed as small and mid-caps and by investing in other equities.

Sundaram Equity Plus: Seek capital appreciation by investing in equity and equity-related instruments listed in India to

the extent of at least 65% and in gold-ETF up to 35%. Investment in overseas markets, if any, shall not exceed the

permissible limit net of existing usage of the mutual fund’s entitlement. Exposure to overseas securities shall also not exceed

35% of assets.

Normal Indicative Asset Allocation

Sundaram Select Mid Cap: • Equity and equity-related instruments (including investment in derivatives): 75%-100% •

Cash, cash equivalents, money market instruments: not exceeding 25% • Exposure in derivative shall not exceed 50% of

the net assets of the scheme • The Scheme may invest up to 35% of the net assets in overseas securities.

Sundaram Equity Multiplier: • Equity & equity-related Instruments (including investment in derivatives): 65%-100% • Debt

instruments including securitised debt & Money Market Instruments: up to 35% (securitised debt up to a maximum of 30%)

• Exposure in derivative shall not exceed 50% of the net assets of the scheme.

Sundaram S.M.I.L.E (Small and Medium Indian Leading Equities Fund): • Equity instruments – small-cap and mid-cap

stocks (including investments in derivatives): At least 65% • Other Equities (including investment in derivatives): Not

exceeding 35% • Money market instruments: Not exceeding 15% • Exposure in derivative shall not exceed 50% of the net

assets of the scheme • The Scheme may invest up to 35% of the net assets in overseas securities.

Sundaram Equity Plus: • Equity & equity-related instruments listed in India 65%-85% • Gold ETF 15%-35% • Fixed Income

& Money Market Instruments 0%-20%.

Track Record

Fund/Benchmark Returns (in %) Folios AUMInception One year Three years Five years Since Inception # (Rs. crore)

Past performance may or may not be sustained in the future; Returns in %. Returns computed on compounded annualised basis based on the NAV of Regular Plan -Growth option. Performance, Folios & AUM as on March 31, 2017; Relevant benchmarks highlighted in italics.

Sundaram Select Mid Cap Jul-02 35.7 31.7 24.9 29.5 3,65,147 4,941 S&P BSE Mid Cap 32.8 25.8 17.3 20.0Sundaram Equity Multiplier Feb-07 29.3 22.3 16.5 10.7 48,544 270 Nifty 500 23.9 15.2 13.6 9.4Sundaram S.M.I.L.E Fund Feb-05 37.8 36.6 25.3 19.6 1,02,831 1,171 S&P BSE Smallcap 36.9 26.8 16.8 11.9Sundaram Equity Plus May-11 10.8 6.8 6.2 6.2 12,003 45 Domestic Price of Gold Index(35%) Nifty 50 Index(65%) 12.5 7.3 7.6 7.8

Investment Objective & Asset Allocation of existing comparable equity Schemes of Sundaram Mutual Fund

Differentiating aspect of Sundaram Select Mid Cap: The fund is a pure mid-cap fund. The threshold is stocks with amarket cap that is lower than that of the 50th stock by market cap on the NSE. This shall be determined based on marketcap at the time of the investment. The Scheme’s weighted average market-cap and median market cap are likely to besubstantially lower than the permitted threshold, indicating the pure mid-cap nature of the fund. The Scheme shall owna diversified portfolio of stocks and also focus on liquidity aspect, too, as this is important in the mid-cap space.

SOBNo.2

SOBNo.2 Standard Risk Factors:

• Investment in Mutual Fund Units involves investmentrisks such as trading volumes, settlement risk, liquidityrisk, default risk including the possible loss ofprincipal.

• As the price / value / interest rates of the securities inwhich the Scheme invests fluctuates, the value of yourinvestment in the Scheme may go up or down.

• Past performance of the Sponsor/InvestmentManager/Mutual Fund does not guarantee futureperformance of the Scheme.

• The names of each Scheme does not in any mannerindicate either the quality of the Scheme or its futureprospects and returns.

• The sponsor is not responsible or liable for any lossresulting from the operation of the Scheme beyond theinitial contribution of Rs 1 lakh made towards settingup the Fund.

• The Scheme is not a guaranteed or assured returnScheme.

Scheme-Specific RisksLack of liquidity at times and volatility.Mid cap stocks are generally illiquid in terms of tradingvolumes on stock market. Investors should thereforeassume that illiquidity risks are higher in this fund than in anormal diversified fund. Change in Government policy in general and changes intax benefits applicable to mutual funds may impact thereturns to Investors. Tax-free status for long-term capitalgains and dividend will depend on the fund investing morethan 65% in equity to qualify in accordance with provisionsof the Income-Tax Act. If and to the extent, the portfolioincludes overseas stocks, investors will be exposed tocountry risk, currency risk, geo-political risk, legalrestrictions and regulation changes in geography otherthan India, to name a few.General Risk Factors• Mutual Funds and securities investments are subject

to market risks and there is no assurance or guaranteethat the objectives of the Scheme will be achieved.

• The main types of risks to which the Scheme isexposed are risk of capital loss, market risk, currencyrisk, liquidity risk, credit risk, counter party default risk,to name a few.

• As with any investment in securities, the NAV of theUnits issued under the Scheme can go up or downdepending on the factors and forces affecting thecapital markets.

• The NAV may be affected by factors such as marketconditions, level of interest rates, market-relatedfactors, trading volumes, settlement periods, transferprocedures, price/interest rate risk, credit risk,government policy, volatility and liquidity in markets,exchange rate, geo-political development, to name afew.

• Trading volumes in the securities in which the Schemeinvest may inherently restricts the liquidity of theScheme’s investments.

• Change in Government policy in general and changes

in tax benefits applicable to mutual funds may impactthe returns to Investors in the Scheme.

• The tax benefits available under the Scheme is asavailable under the present taxation laws and subjectto relevant conditions. The information given isincluded for general purposes only and is based onadvice that the Investment Manager has receivedregarding the law and the practice that is now in forcein India.

• Unit holders should be aware that the relevant fiscalrules and their interpretation might change. As is thecase with any investment, there can be no guaranteethat the tax position or the proposed tax positionprevailing at the time of investment in the Scheme willendure indefinitely. In view of the individual nature oftax consequences, each Investor/Unit holder isadvised to consult his/her own professional taxadvisor.

• Investors/unit holders are also urged to read thedetailed clause(s) titled ‘Special considerations’.

• FATCA imposes tax withholding upto 30% on anypayments (including redemption and dividendproceeds) made by the Fund/AMC to a US Personclassified as recalcitrant account holder in respect ofwhom the applicable documentation and reportingrequirements are not met.

This is only an illustrative list and not an exhaustive listfactors that could affect the NAV of the Scheme. Theyshould read the risk factors presented in this documentthough the list is no way exhaustive. Potential investorsshould rely solely on the information contained in thisScheme Information Document and are advised to consulttheir investment advisors before taking investmentdecisions.Risk of Capital LossThe Net Asset Value (NAV) of the Scheme is exposed tomarket fluctuations, and its value can go up as well asdown. Investors may lose their entire principal. Risk Factors - Equity Markets• Stock Market Volatility: Stock markets are volatile and

can decline significantly in response to adverseissuer, political, regulatory, market, or economicdevelopments. Different parts of the market can reactdifferently to these developments. The stock-specificvolatility may also change over a period of time as thecharacteristic of the stock undergoes a change interms of market-cap category.

• Equity Price Risk: Stock prices may rise or declinebased on a number of factors. These could be acombination of company-specific and system-specificfactors. Their impact on different types of stocks mayvary. Prices change due to events that impact entirefinancial markets or industries (for example, changesin inflation, consumer demand, supply situation andGDP growth). Company-specific factors may includethe likes of success or failure of a new product,mergers, takeovers, earnings announcement andchanges in management, to name a few. Securitiesowned by the Scheme may offer opportunities forgrowth because of high potential earnings growth;


Sundaram Select Mid CapPart I Risk Factors

they may also involve greater risks than securities thatdo not have the same potential.

• Dependency Risk: The Scheme may invest in stocksand mutual funds and exchange-traded funds linkedto stocks. Equity confers a proportionate share of theownership of a company. Its value will depend on thesuccess of the company’s business, income paid tostockholders by way of dividend, the value of thecompany’s assets, quality of its corporate governancepractice, its attractiveness relative to peers andgeneral market conditions. The fund may also investin convertible securities and warrants. Convertiblesecurities generally are fixed-income securities orpreference shares that may be converted intocommon stock after a prescribed period.

• Temporary Investment Risk: If the fund manager is ofthe view that market or economic conditions maybecome unfavourable for investors in equities, he mayinvest a higher proportion of the fund’s assets in highquality short-term and medium-term fixed incomeinstruments as well as near-cash equivalents. Thismay be a defensive and temporary strategy. The fundmanager may also adopt such a strategy whilezeroing in on appropriate investment opportunities orto maintain liquidity. At times, such investments maylead to lower returns. In these circumstances, theScheme may be unable to achieve its investmentgoal.

• Non-diversification Risk: The Scheme may pursueonly a limited degree of diversification. It may invest agreater proportion of assets in the securities of oneissuer (within the limit permitted by Regulation) ascompared to a diversified fund. This could haveimplications for the performance of the Scheme. TheScheme may be more sensitive to economic,business, political or other changes and this may leadto sizeable fluctuation in the Net Asset Value of theScheme.

• Asset-Class Risk: Stocks have historically outpacedother asset classes such as gold, fixed deposits andbonds, to name a few, over the long-term in India.Individual stocks prices may, however, tend to riseand decline in a dramatic manner. Such pricemovement may be due to company-specific aspectsor factors such as inflation, interest rates and growthrates that affect the securities market in entirety. Aslowdown in growth or a partial or full-blown recessionmay have a negative impact on prices of most stocksowned by the Scheme.

Risk Factors - Debt Markets• Interest Rate Risk: Changes in the prevailing rates ofinterest may affect the value of the Scheme’s holdingsand consequently the value of the Scheme’s Units.Increased rates of interest, which frequently accompanyinflation and /or a growing economy, may have anegative effect on the value of the Units. The value ofdebt securities held by the Scheme generally will varyinversely with the changes in prevailing interest rates. While it is the intent of the fund manager to investprimarily in high rated debt securities, the Scheme may

from time to time invest in higher yielding, low ratedsecurities. As a result, an investment in the Scheme maybe accompanied by a higher degree of risk relative toan investment consisting exclusively of high rated, loweryielding securities.

• Credit Risk: Credit Risk refers to the risk of failure ofinterest (coupon) payment and /or principal repayment.All debt instruments carry this risk. Governmentsecurities carry sovereign credit risk. The assets of theScheme may be partly invested in fixed incomesecurities issued by a corporate entity, bank, financialinstitution and/or a public sector undertaking owned bythe Government of India or by a government in any state.The credit risk associated with the aforementionedissuers of debt is higher than that of governmentsecurities.

• Price Risk: As long as the Scheme remains invested, itsNet Asset Value (NAV) would be exposed to marketfluctuations, and its value can go up as well as down.The portfolio of fixed-income securities that the Schemeinvests in would be exposed to price changes on a day-to-day basis.

• These price changes may occur due to instrument-specific factors as well as general macroeconomicconditions. In general, price of fixed-income securitiesgo up when interest rates fall, and vice versa.

• Market Risk: The Scheme may also be subject to pricevolatility due to such factors as interest sensitivity, marketperception or the creditworthiness of the issuer andgeneral market liquidity.

• Liquidity Risk: A lower level of liquidity affecting anindividual security (ies) or an entire market may have anadverse bearing on the value of the Scheme’s assets.This may more importantly affect its ability to sellparticular securities with minimal impact cost as andwhen necessary to meet requirement of liquidity or to sellstocks in response to triggers such as a specificeconomic/corporate event. Trading volumes, settlementperiods and transfer procedures may restrict the liquidityof a few of the investments.

• Risk relating to investment pattern: Different types ofsecurities in which the Scheme would invest as given inthe Scheme Information Document carry different levelsand types of risk. Accordingly the Scheme's risk mayincrease or decrease depending upon its investmentpattern. e.g. corporate debt carry credit risk unlikeGovernment securities. Further even among corporatedebt, AAA rated debt is comparatively less risky (incredit risk terms) than those rated lower (say AA or A).

• Risks relating to duration: Fixed Income securities of anyissuer that has higher duration could be more risky interms of price movements relative to those with lowerduration. Thus any impact of interest rate changes wouldbe higher on securities with higher duration irrespectiveof the status of the issuer of the security.

• Limited Liquidity & Price Risk: Presently, secondarymarket for securitised papers is not very liquid. There isno assurance that a deep secondary market will developfor such securities. This could limit the ability of theinvestor to resell them. Even if a secondary marketdevelops and sales were to take place, these secondary



transactions may be at a discount to the initial issueprice due to changes in the interest rate structure.

• Limited Recourse, Delinquency and Credit Risk:Securitised transactions are normally backed by a poolof receivables and credit enhancement as stipulated bythe rating agency, which differ from issue to issue. TheCredit Enhancement stipulated represents a limited losscover to the Investors. These Certificates represent anundivided beneficial interest in the underlyingreceivables and there is no obligation of either the Issueror the Seller or the originator, or the parent or any affiliateof the Seller, Issuer and Originator. No financial recourseis available to the Certificate Holders against theInvestors’ Representative. Delinquencies and creditlosses may cause depletion of the amount availableunder the Credit Enhancement and thereby the InvestorPayouts may get affected if the amount available in theCredit Enhancement facility is not enough to cover theshortfall. On persistent default of an Obligor to repay hisobligation, the servicer may repossess and sell theunderlying Asset. However many factors may affect,delay or prevent the repossession of such Asset or thelength of time required to realize the sale proceeds onsuch sales. In addition, the price at which such Assetmay be sold may be lower than the amount due from thatObligor.

• Risks due to possible prepayments: Weighted Tenor /Yield: Asset securitisation is a process wherebycommercial or consumer credits are packaged and soldin the form of financial instruments Full prepayment ofunderlying loan contract may arise under any of thefollowing circumstances;• Obligor pays the Receivable due from him at any timeprior to the scheduled maturity date of thatReceivable; or

• Receivable is required to be repurchased by theSeller consequent to its inability to rectify a materialmisrepresentation with respect to that Receivable; or

• The servicer recognizing a contract as a defaultedcontract and hence repossessing the underlyingAsset and selling the same.In the event of prepayments, investors may beexposed to changes in tenor and yield.

• Bankruptcy of the Originator or Seller: If originatorbecomes subject to bankruptcy proceedings and thecourt in the bankruptcy proceedings concludes that thesale from originator to Trust was not a sale then anInvestor could experience losses or delays in thepayments due. All possible care is generally taken instructuring the transaction so as to minimize the risk ofthe sale to Trust not being construed as a “True Sale”.Legal opinion is normally obtained to the effect that theassignment of Receivables to Trust in trust for and for thebenefit of the Investors, as envisaged herein, wouldconstitute a true sale.

• Bankruptcy of the Investor’s Agent: If the Investor’sagent, becomes subject to bankruptcy proceedings andthe court in the bankruptcy proceedings concludes thatthe recourse of Investor’s Agent to the assets /receivables is not in its capacity as agent / Trustee but inits personal capacity, then an Investor could experience

losses or delays in the payments due under the swapagreement. All possible care is normally taken instructuring the transaction and drafting the underlyingdocuments so as to provide that the assets/receivablesif and when held by Investor’s Agent is held as agentand in Trust for the Investors and shall not form part ofthe personal assets of Investor’s Agent. Legal opinion isnormally obtained to the effect that the Investors Agent’srecourse to assets/ receivables is restricted in itscapacity as agent and trustee and not in its personalcapacity.

• Credit Rating of the Transaction / Certificate: The creditrating is not a recommendation to purchase, hold or sellthe Certificate in as much as the ratings do not commenton the market price of the Certificate or its suitability to aparticular investor. There is no assurance by the ratingagency either that the rating will remain at the same levelfor any given period of time or that the rating will not belowered or withdrawn entirely by the rating agency.

• Risk of Co-mingling: The servicer normally deposit allpayments received from the Obligors into the CollectionAccount. However, there could be a time gap betweencollection by a servicer and depositing the same into theCollection account especially considering that some ofthe collections may be in the form of cash. In this interimperiod, collections from the Loan Agreements may notbe segregated from other funds of the servicer. If theservicer fails to remit such funds due to Investors, theInvestors may be exposed to a potential loss. Due careis normally taken to ensure that the servicer enjoyshighest credit rating on stand alone basis to minimizeCo-mingling risk.

Risk Factors - Overseas InvestmentsAs the Scheme will invest in global markets; investors willbe exposed to several risk factors that are not relevant forthe Scheme that invests in Indian securities. A few types ofrisks are:• Foreign Exposure and Currency Risk: The Scheme

may invest in overseas securities that are issued andtraded in foreign currencies. As a result, their valuesmay be affected by changes in exchange ratesbetween foreign currencies and the Indian Rupee aswell as between currencies of countries other thanIndia. Restrictions on currency trading that may beimposed will have an adverse effect on the value ofthe securities of companies that trade or operate insuch countries.

• Country Risk: This refers to inability of a country tomeet its financial obligations for economical, politicalor geo-political reasons. The degree of this risk mayvary from country to country.

• Event Risk: Diplomatic and political developments,including rapid and adverse political changes, socialinstability, regional conflicts, terrorism and war, couldaffect the economies, industries and securities andcurrency markets, and the value of the Scheme’sinvestments. These factors are extremely difficult, ifnot impossible, to predict and take into account withrespect to the Scheme’s investments.

• Restrictions imposed overseas: Changes in local



SOBNo.5

regulation can affect the local financial markets andrestrictions on investment by overseas investors beimposed; introduction of exchange controls andimmobilisation of foreigner financial assets can occurIn contrast, an improvement in country risk rating maytake a substantially longer period.

• Emerging Markets Risk: Emerging market countriesinclude those currently considered to be developingby the World Bank, the International FinanceCorporation, the United Nations, the countries’authorities or countries that are treated as emergingmarkets by index service providers at the global level.These countries typically are located in the Asia-Pacific region, Eastern Europe, Central and SouthAmerica and Africa. Emerging markets arecomparatively smaller than developed markets. Theyare characterised by high degree of market-price andcurrency volatility and declines of more than 50% arenot unusual. Markets that are generally considered tobe liquid may become illiquid for short or extendedperiods.

• Regulation-Change Risk: If the Government of India,RBI and/or SEBI decide to alter the regulatoryframework for investment in overseas financial assetsby mutual funds, it may have an impact on theScheme’s ability to adhere to the investment objective.If and when such an eventuality materialises, theTrustee reserves the right to alter the investmentobjective of the Scheme or wind up the Scheme.

Risk Factors - ADR/GDR• Currency risk in case the rupee appreciates against

the currency in which the security is issued.• In the case of GDRs, liquidity may be poor and

dependent on the market-makers. • In case of ADRs, liquidity may be more than in the

case of GDRs and lower than in the underlying stocklisted in India (NSE and/or BSE), as ADRs are usuallylisted either on the NYSE or Nasdaq.

ADRs/GDRs cannot be held in the name of the MutualFund; they have to be held in the name of a custodian(usually domiciled outside India).Risk Factors - Derivatives• Counter Party Risk: This is the risk of default ofobligations by the counter party.

• Market risk: Derivatives carry the risk of adversechanges in the market price.

• Illiquidity risk: The risk that a derivative cannot be sold orpurchased quickly enough at a fair price, due to lack ofliquidity in the market.

• Basis Risk: the risk that the movements in swap ratesdoes not actually reflect the expected movement inbenchmark rates, thus, creating a mismatch with whatwas intended.

The guidelines issued by Reserve Bank of India from timeto time for forward rate agreements, interest rate swaps,futures and other derivative products would be adhered to.The Scheme may also use various derivative and hedgingproducts from time to time, as would be available andpermitted by SEBI/RBI, in an attempt to protect the value ofthe portfolio.

As and when the Scheme trades in the derivatives marketthere are risk factors and issues concerning the use ofderivatives that investors should understand. Derivative products are specialised instruments that requireinvestment techniques and risk analysis. The use of aderivative requires an understanding not only of theunderlying instrument but also of the derivative itself.Derivatives require the maintenance of adequate controlsto monitor the transactions entered into, the ability toassess the risk that a derivative adds to the portfolio andthe ability to forecast price or interest rate movementscorrectly. There is the possibility that a loss may besustained by the portfolio as a result of the failure of anotherparty (usually referred to as the "counter party") to complywith the terms of the derivatives contract. Other risks inusing derivatives include the risk of mispricing or impropervaluation of derivatives and the inability of derivatives tocorrelate perfectly with underlying assets, rates andindices. Thus, derivatives are highly leveraged instruments.Even a small price movement in the underlying instrumentcould have a large impact on their value. Also, the marketfor derivative instruments is nascent in India.The Scheme may use techniques such as interest rateswaps, options on interest rates, futures, warrants, forwardrate agreement and other derivative instruments that are /may be permitted under SEBI/RBI Regulation. Thesetechniques and instruments, if imperfectly used, have therisk of the Scheme incurring losses due to mismatches,particularly in a volatile market. The Scheme ability to usethese techniques may be limited by market conditions,regulatory limits and tax considerations (if any).Derivative products are leveraged instruments and canprovide disproportionate gains as well as disproportionatelosses to the investor. Execution of such strategiesdepends upon the ability of the fund manager to identifysuch opportunities. Identification and execution of thestrategies to be pursued by the fund manager involveuncertainty and decision of the fund manager may notalways be profitable. No assurance can be given that thefund manager will be able to identify or execute suchstrategies.The risks associated with the use of derivatives are differentfrom or possibly greater than, the risks associated withinvesting directly in securities and other traditionalinvestments. Minimum Number of Investors & Single-Investor LimitAs per SEBI Regulations, the Scheme shall have aminimum of 20 investors and no single investor shallaccount for more than 25% of the corpus of the Scheme ineach calender quarter on an average basis. In case theScheme does not have a minimum of 20 investors in thestipulated period, the provisions of Regulation 39(2)(c) ofthe SEBI (MF) Regulation would become applicableautomatically without any reference from SEBI andaccordingly the Scheme shall be wound up and the unitswould be redeemed at applicable NAV. The two conditionsmentioned above shall also be complied within eachsubsequent calendar quarter thereafter, on an averagebasis, as specified by SEBI. If there is a breach of the 25%limit by any investor over the quarter, a rebalancing period



of one month would be allowed and thereafter the investorwho is in breach of the rule shall be given 15 days noticeto redeem his exposure over the 25% limit. Failure on thepart of the said investor to redeem his exposure over the25% limit within the aforesaid 15 days would lead toautomatic redemption by the Mutual Fund on theapplicable Net Asset Value on the 15th day of the noticeperiod. The Fund shall adhere to the requirementsprescribed by SEBI from time to time in this regard.Special ConsiderationsProspective investors should review / study this SchemeInformation Document carefully and in its entirety and shallnot construe the contents hereof or regard the summariescontained herein as advice relating to legal, taxation, orfinancial/ investment matters and are advised to consulttheir own professional advisor(s) as to the legal or any otherrequirements or restrictions relating to the subscription,gifting, acquisition, holding, disposal (sale, transfer, switchor redemption or conversion into money) of units and to thetreatment of income (if any), capitalisation, capital gains,any distribution, and other tax consequences relevant totheir subscription, acquisition, holding, capitalisation,disposal (sale, transfer, switch or redemption or conversioninto money) of units within their jurisdiction / of nationality,residence, domicile etc. or under the laws of anyjurisdiction to which they or any managed Scheme to beused to purchase/gift units are subject, and (also) todetermine possible legal, tax, financial or otherconsequences of subscribing / gifting to, purchasing orholding units before making an application for units.Neither this Scheme Information Document nor the unitshave been registered in any jurisdiction. The distribution ofthis Scheme Information Document in certain jurisdictionsmay be restricted or subject to registration requirementsand, accordingly, persons who come into possession ofthis Scheme Information Document in certain jurisdictionsare required to inform themselves about, and to observe,any such restrictions. No person receiving a copy of thisScheme Information Document or any accompanyingapplication form in such jurisdiction may treat this SchemeInformation Document or such application form asconstituting an invitation to them to subscribe for units, norshould they in any event use any such application form,unless in the relevant jurisdiction such an invitation couldlawfully be made to them and such application form couldlawfully be used without compliance with any registration orother legal requirements. Neither the delivery of thisScheme Information Document nor any sale madehereunder shall, under any circumstances, create anyimplication that the information contained herein is correct.

Details under FATCA/Common Reporting Standards(CRS)/Foreign Tax Laws

India has joined the Multilateral Competent AuthorityAgreement (MCAA) on automatic exchange of financialaccount information on June 3, 2015. In terms of theMCAA, all signatory countries are obliged to exchangewide range of financial information after collecting thesame from financial institutions in their country/jurisdiction.Government of India has amended the Income-tax Act,

1961 in August 2015 pursuant to which all the financial

institutions including Mutual Funds are required to report

the transactions of US citizens / residents and also of other

signatory countries to the Government of India.

Further, the Government of India has signed an Inter-

Governmental agreement with US on July 09, 2015 (with

date of entry into force as Aug 31, 2015) to improve

international tax compliance and to implement FATCA in

India pursuant to which prescribed details of US Account

holders/tax payers has to be reported by the Indian Entities

to Government of India which in turn will relay that

information to the US Interval Revenue Service (IRS).

The Foreign Account Tax Compliance Act (FATCA) is a

United States law aimed at prevention of tax evasion by

U.S. citizens and residents through use of offshore

accounts. The FATCA provisions were included in the

Hiring Incentives to Restore Employment (HIRE) Act,

enacted by the US legislature to create employment

opportunities in the US. FATCA is designed to increase

compliance by U.S. taxpayers and is intended to bolster

efforts to prevent tax evasion by the US tax payers with

offshore investments.

Sundaram Mutual Fund / the AMC is classified as a

‘Foreign Financial Institution’ under the FATCA provisions.

Accordingly, the AMC / Mutual Fund will be required to

undertake due diligence process and identify US

reportable accounts and collect such information /

documentary evidences of the US and / or non-US status

of its investors / Unit holders and disclose such information

(directly or through its agents or service providers) as far as

may be legally permitted about the holdings / investment

returns to US Internal Revenue Service (IRS) and / or the

Indian Tax Authorities. The AMC has registered with US

Internal Revenue Service (IRS) and has obtained a Global

Intermediary Identification Number (GIIN):

EY9227.99999.SL.356 for the said reporting purposes.

FATCA/CRS due diligence will be directed at each investor

/ Unit holder (including joint investor) and on being

identified as a reportable person / specified US person, all

the folios will be reported. In case of folios with joint

holders, the entire account value of the investment portfolio

will be attributable under each such reportable person. An

investor / Unit holder will therefore be required to furnish

such information as and when sought by the AMC in order

to comply with the information reporting requirements

stated in IGA and circulars issued by SEBI/Government of

India in this regard from time to time. The information

disclosed may include (but is not limited to) the identity of

the investors and their direct or indirect beneficiaries,

beneficial owners and controlling persons. Investors /

Unitholders should consult their tax advisors regarding

FATCA/CRS requirements with respect to their situation.



In this document, the following words and expressions shallhave the meaning specified herein, unless the contextotherwise requires:

Applicable NAV:

Pursuant to SEBI Circulars SEBI/IMD/CIR No. 11/142521/08dated October 24, 2008 and CIR/IMD/DF/19/2010 datedNovember 26, 2010 read along with the circularCIR/IMD/DF/21/2012 dated September 13, 2012, theapplicable NAV shall be as follows:

• For subscription/redemption/switch request receivedbefore 3.00 pm on any business day, the closing NAV ofthe day of receipt of application.

• For subscription/redemption/switch request received after3.00 pm on any business day, the closing NAV of nextbusiness day after the receipt of application.

For further details, please refer page number 4

Benchmark: The index for evaluating the performance of theScheme.

Business Day

A day other than

• A Saturday;

• A Sunday;

• A day on which there is no RBI clearing/settlement ofsecurities;

• A day on which the Reserve Bank of India and/or banks inMumbai are closed for business/clearing;

• A day on which the Stock Exchange, Mumbai or NationalStock Exchange of India or RBI and/or banks are closed;

• A day which is a public and/or bank holiday at an investorcentre where the application is received;

• A day on which sale/redemption/switch of units issuspended by the Investment Manager / Trustee;

• A day which falls within a book closure period announcedby the Trustee / Investment Manager and

• A day on which normal business cannot be transacted dueto storms, floods, bandh, strikes or such other events asthe Investment Manager may specify from time to time.

The Investment Manager reserves the right to declare any dayas a business day or otherwise at any or all branches /Investor Service Centres.

Custodian: A person who has been granted a certificate of

registration to carry on the business of custodian of securities

under the Securities and Exchange Board of India (Custodian

of Securities) Regulation, 1996 and includes any entity

appointed to act as custodian in respect of foreign securities

(including approved banks).

First Time Mutual Fund Investor: An investor who invests for

the first time ever in any mutual fund either by way of

purchase/subscription or Systematic Investment Plan.

Investment Management Agreement: Investment

Management Agreement dated August 24, 1996, executed

between the Trustee and the Investment Manager as

amended from time to time.

Investment Manager: Sundaram Asset Management

Company Limited incorporated under the provisions of the

Companies Act, 1956 and approved by the Securities and

Exchange Board of India to act as the Investment Manager

for the Schemes of Sundaram Mutual Fund. AMC is also

called as Investment Manager alternatively.

Investor Service Centres or Official Points of acceptance of

transactions: Designated branches of Sundaram Asset

Management Limited or such other centres/offices as may be

designated by the Investment Manager or its registrars from

time to time.

Mutual Fund or the Fund: Sundaram Mutual Fund, a trust set

up under the provisions of the Indian Trust Act, and registered

with SEBI vide Registration No.MF/034/97/2.

NAV: The Net Asset Value per unit of the Scheme, calculated

in the manner provided in the Scheme Information Document,

as may be prescribed by SEBI Regulation from time to time.

Regulations: Securities and Exchange Board of India (Mutual

Funds) Regulation 1996 as amended from time to time.

Trustee: Sundaram Trustee Company Limited, as incorporated

under the Provisions of the Companies Act, 1996, and

approved by SEBI to act as Trustee to the Scheme of

Sundaram Mutual Fund.

Trust Deed: The Trust Deed dated March 31st 2006 (as

amended from time to time) establishing the Mutual Fund.

Unit Holder: The term unit holder and investor has been used

interchangeably in this document.Sundaram Mutual Fundwww.sundarammutual.com 17

Sundaram Select Mid CapDefinition

Definition

AbbreviationIn this document, an investor may find the following abbreviations.

AMC Asset Management CompanyAMFI Association of Mutual Funds in IndiaAML Anti-Money LaunderingAUM Assets Under ManagementBSE Bombay Stock Exchange LimitedSBNPPFS Sundaram BNP Paribas Fund Services LimitedCBLO Collateralised Borrowing and Lending ObligationCCC Cuntomer Care CentreCDSC Contingent Deferred Sales ChargeECS Electronic Clearing SystemEFT Electronic Funds TransferFATCA Foregin Account Tax Compliance ActFPI Foreign Portfolio InvestorFRA Forward Rate AgreementHUF Hindu Undivided FamilyIMA Investment Management AgreementIRS Interest Rate SwapKIM Key Information MemorandumKYC Know Your CustomerMFU Mutual Fund UtilityNAV Net Asset ValueNRI Non-Resident IndianNSE National Stock Exchange of India LimitedPAN Permanent Account NumberPIO Person of Indian OriginPMLA Prevention of Money Laundering Act, 2002POS Points of ServiceRBI Reserve Bank of IndiaRTGS Real Time Gross SettlementSAI Statement of Additional InformationSEBI Securities and Exchange Board of IndiaSEBI Act Securities and Exchange Board of India Act, 1992SEFT Special Electronic Funds TransferSI Standing InstructionsSID Scheme Information DocumentSIP Systematic Investment PlanSTP Systematic Transfer PlanSWP Systematic Withdrawal Plan


Sundaram Select Mid CapAbbreviation & Interpretation

Due Diligence by Sundaram Asset Management Company LimitedIt is confirmed that: • The Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulation, 1996and the guidelines and directives issued by SEBI from time to time.

• All legal requirements connected with the launch of the Scheme as also the guidelines, and instructions issued by theGovernment of India and any other competent authority in this behalf, have been duly complied.

• The disclosures made in this Scheme Information Document are true, fair and adequate to enable the investors to makea well-informed decision regarding an investment in the Scheme.

• The intermediaries named in this Scheme Information Document and the Statement of Additional Information areregistered with SEBI and the registration is valid as on date.

This Scheme Information Document was originally approved by the Trustee of Sundaram Mutual Fund vide resolution dated22/04/2002 and this is an updated version of the same. The aforesaid Due Diligence Certificate was submitted to theSecurities and Exchange Board of India.Chennai P Sundararajan31/05/2017 Head-Compliance & Company Secretary

Interpretation

The words and expressions used in this documentand not defined shall have the meaningsrespective

Documents

Sundaram Mutual Fund Trustee Company Sundaram ......Sundaram Select Mid Cap Sponsor Trustee Sundaram Finance Limited CIN: L65191TN1954PLC002429 Registered Office: 21, Patullos Road,