Sundaram Focused Fund Direct-Growth: Key Insights, Returns, Risks, and More

Indian stock markets are quite sensitive to a plethora of factors, whether it’s domestic or foreign. For instance, the market has been tumbling for the past few days again after rising for a brief period. The investors seem to be worried about market dynamics. On the home ground, while there are different economic issues popping up affecting the market, the geopolitical situation is also affecting the market, as every day there is something happening either in the West or in the Middle East. 

However, a strategic way to bypass these market fluctuations to some extent and optimize your returns is by strategically allocating funds across market capitalization. This is what Sundaram Focused Fund – Direct Plan-Growth does. We will talk about the performance, risks, objectives, and a lot of other aspects of this fund, which as an investor you should know before investing in it. 

Sundaram Focused Fund Direct-Growth Fund Management and Objectives

Sundaram Focused Fund Direct-Growth invests across equities irrespective of their market capitalization. Basically, it allocates funds according to the market scenario, for instance, if the market is in a bull run, then it shifts most of the assets of the fund towards mid-cap and small-cap, while when the market is down, it invests more into largecaps. So, there is flexibility in the allocation of funds, and it is categorized as a flexicap fund as well. 

Sundaram Focused Fund Direct Plan-Growth is managed by – 

• Ashwin Jain: He has been managing the fund since 21 October 2024. Before joining Sundaram Asset Management Company, he was associated with ICICI Prudential Asset Management Co., HCL Technologies, Merrill Lynch, Irevana, and others. He holds a Bachelor’s in Engineering and a Post-Graduation Diploma in Management. 

How Does the Sundaram Focused Fund Work?

Sundaram Focused Fund invests in equities and equity-related instruments of domestic companies. The stocks are picked from different market capitalization categories in order to align with market sentiment. For instance, if the market is down, then small and midcap stocks tend to be more volatile. This increases the risk of the investment; on the other hand, the largecap stocks remain comparatively stable when the market crashes. So, during a market crash, or bear trend, the assets of the fund get allocated to largecap stocks, and when the market revives, it enters a bull phase, then again the fund manager shifts the fund more towards the small and mid-cap aligning with the investment objective. 

This way, the fund remains more optimized and helps in generating better returns, and minimizes the risk quotient. 

Performance and Returns (As of 25 August 2025) 

Here is a snapshot of the returns of the Sundaram Focused Fund and a comparison with its peers. 

Time Frame	Sundaram Focused Fund Direct-Growth (%)	Category Average
6 Month	9.62	13.77
3 Month	3.42	2.61
1 Month	0.84	0.54
1 Day	0.25	0.24
YTD	1.23	2.30
1 Year	-1.14	0.47
3 Year	15.38	17.67
5 Year	19.75	20.54
7 Year	15.01	14.53
10 Year	14.69	14.77

As can be understood from the table above, the fund has been underperforming compared to its peers, as the returns for most of the time frame are lower than that of the category average. However, the fund has been consistent with its return.  

Investment Allocation (As of 31 July 2025)

The Sundaram Focused Fund Growth has 95.12% of equity and equity-related instruments, and 4.88% is cash and cash equivalents. 

Market Capitalization-wise Allocation  

• Giant Stocks– 49.57%
• Large Cap– 31.59%
• Mid cap– 15.29%
• Small cap – 3.56%

As of 31 July 2025, the fund holds 25 stocks, and the top ten stocks comprise 55.25% of its assets. 

Sector-Wise Allocation

The top five sectors where most of the assets are allocated include – 

Sector	Allocation (%)
Financial	31.88
Technology	17.66
Consumer Discretionary	13.05
Healthcare	7.31
Materials	6.51

The top five stock holdings of the Sundaram Focused Fund include – 

Stocks	Assets (%)
HDFC Bank	9.64
ICICI Bank	9.38
Bharti Airtel	6.01
Kotak Bank	4.75
Craftsman Automation	4.65

Key Metrics 

As of 31 July 2025, the fund had an expense ratio of 1.29%, which is significantly higher than the category average of 0.81%.

Fund Details	Information
AUM (Assets Under Management)	₹1100 Crore as of 31 July 2025
Category	Equity Fund, open-ended
Fund Manager	Ashwin Jain
Exit Load	0.25% for redemption within 7 days of investments
Entry Load	Nil
Minimum Investment	₹300 (Lump sum)₹100 (SIP)
Benchmark	Nifty 500 TRI

The Sundaram Focused Fund NAV as of 01 Oct 2025 stood at ₹158.595  

Risk and Performance of the Sundaram Focused Fund 

This fund is classified as a ‘Very High Risk’ fund. It indicates that the fund can generate market-beating returns, but at the same time, it can be highly volatile, posing risks to the investments. 

1. Standard Deviation (Std Dev%): It shows how much the returns vary from the average returns generated by the funds themselves. The higher this number, the more it fluctuates.

The Standard deviation for the fund is 11.98%, while that of the category is a little higher at 13.12%, making the fund’s returns less fluctuating.

2. Beta: This ratio indicates the volatility of the fund’s performance, compared to similar funds in the market. The lower the Beta, the more predictable the returns are, and vice versa. It helps in comparing funds. 

The fund has 0.84% a beta, while that of the category is 0.91%, again depicting slightly lower volatility for the fund compared to the peers. 

3. Sharpe Ratio: This ratio indicates the return you get for the risk you’re taking. A higher number means better risk-adjusted returns.

The fund’s Sharpe ratio is 0.85% while the category average is 0.88%, making the fund offer slightly risk-adjusted returns. 

4. Sortino Ratio: It is similar to Sharpe but only looks at downside risk (the risk of losing money

The fund has 1.39% while the category average is 1.31%, offering slightly higher downside risk-adjusted profits. 

5. Alpha: It measures the extra return the fund gives above the market’s average return.

The fund has 1.49%, and the category average is 2%, indicating that the fund offers a lower return than its peers. 

Taxation for Sundaram Focused Fund 

If you’re investing in the Sundaram Focused Fund, here’s how your returns will be taxed:

• If you have purchased the fund units on or after 1 April 2023, then the entire amount you generate from the fund as profit will be taxed according to your income slab rate. 
• If the fund units were purchased before 1 April 2023, then in case you have been selling the units within 2 years of the date of investment, gains will be added to the income and taxed as per the slab. However, if you are selling the units after 2 years of investment, then the tax rate will be 12.5% on the profits. 
• In case of dividend income, it will be taxed as per the slab. If dividend income exceeds ₹10000 in a financial year, then the fund house charges a TDS of 10% before distributing the dividends.

Minimum Investment and Lock-in Period

The minimum investment amount in the Sundaram Focused Fund is ₹300 for lump sum and SIP, which is ₹100. There is no lock-in period for the Sundaram Focused Fund Direct-Growth.

How to Invest in the Sundaram Focused Fund Direct?

You can invest in the Sundaram Focused Fund – Direct Growth plan with Shoonya. 

Shoonya offers a free Demat account,  Zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

Investing in Lump Sum Mutual Funds through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at https://trade.shoonya.com
2. From the “Orders” section, click on “MF order.”
3. Search for the fund you wish to invest in; in this case, the Sundaram Focused Fund – Direct Growth plan.
4. Choose “Fresh” for a new investment and enter the amount you want to invest.
5. You can complete your purchase by clicking the “Purchase” button.
6. You will receive a payment link at your registered email. Use the link to make the payment.

After payment, your mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for the Sundaram Focused Fund Direct Plan-Growth plan, you must follow these steps:

1. First, you need to log in to your Shoonya account at https://trade.shoonya.com Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, the Sundaram Focused Fund – Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must enter the mandate amount and the validity date (until you want to keep your SIP active).

4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).

If you do not want to forget your SIPs and invest systematically, the SIP method can be most suitable for you. 

Why Invest in the Sundaram Focused Fund?

The reasons for investing in the Sundaram Focused Fund Direct-Growth can be

• Long-term wealth accumulation 
• Well-diversified portfolio helps mitigate risks

Suitability of this Fund| Who Should Invest?

The Sundaram Focused Fund Direct is suitable for investors who:

• Aggressive investors 
• Looking for potential returns 
• Remain invested for at least five years

Conclusion

Sundaram Focused Fund, being a flexicap fund, offers the benefit of optimizing returns by allocating funds in the right segment according to the market dynamics. While the risk quotient remains higher, with proper asset allocation, the risk can be mitigated, optimizing returns. 

Sundaram Focused Fund Direct Plan-Growth plan | FAQs

Source: ValueResearch

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.