Sundaram Alternate Assets
Sundaram Rising Stars PMS
A small-cap portfolio built for long-term capital appreciation, focused on companies at earlier stages of their business lifecycle with room to scale through earnings growth and disciplined execution.
July 2026 update
Since inception CAGR
15.2%
Value of Rs 1 Cr at launch
Rs 10.6 Cr
1Y strategy return
41.9%
Market cap tilt
88% small cap
Objective
To seek long-term capital appreciation by investing in companies that can be termed as smallcaps.
Since inception
15.2%
Strategy CAGR vs 12.2% for S&P BSE 500 TRI
2026 YTD
30.4%
Calendar year performance through July 2026
1 year return
41.9%
Vs 3.0% for S&P BSE 500 TRI
Suggested horizon
5+ years
Designed for long-term small-cap investors
Fund details
Small-cap PMS for patient capital
The strategy is positioned for investors who can tolerate interim volatility while targeting long-term participation in high-growth small-cap businesses.
Strategy
Small-cap focused PMS
Monthly update
July 2026
Investment horizon
Above 5 years
Inception
November 2009
Primary benchmark
S&P BSE 500 TRI
Secondary benchmark
Nifty Smallcap 250
Fund manager
Mr. Darshan Engineer
Weighted average market cap
Rs 20,285 Cr
Performance
Updated return snapshot as of July 31, 2026
Returns are shown on a time weighted rate of return basis, as disclosed in the July 2026 product note.
Rising Star vs S&P BSE 500 TRI
| Period | Strategy | Benchmark | Excess |
|---|---|---|---|
| SI | 15.2% | 12.2% | +3.0% |
| 10Y | 12.6% | 13.6% | -0.9% |
| 5Y | 15.7% | 12.4% | +3.3% |
| 4Y | 17.0% | 13.3% | +3.7% |
| 3Y | 16.3% | 11.9% | +4.4% |
| 2Y | 19.1% | 0.4% | +18.6% |
| 1Y | 41.9% | 3.0% | +38.9% |
| 6M | 30.4% | 2.0% | +28.4% |
| 3M | 9.1% | 3.8% | +5.3% |
| 1M | -0.5% | 2.2% | -2.7% |
Rising Star vs Nifty Smallcap 250
| Period | Strategy | Benchmark | Excess |
|---|---|---|---|
| 10Y | 12.6% | 14.1% | -1.5% |
| 5Y | 15.7% | 14.4% | +1.2% |
| 4Y | 17.0% | 19.5% | -2.5% |
| 3Y | 16.3% | 16.4% | -0.1% |
| 2Y | 19.1% | -0.1% | +19.1% |
| 1Y | 41.9% | 4.5% | +37.4% |
| 6M | 30.4% | 13.7% | +16.7% |
| 3M | 9.1% | 7.1% | +2.0% |
| 1M | -0.5% | 1.1% | -1.6% |
Portfolio allocation
Sector and market-cap positioning
The July 2026 portfolio remained strongly tilted toward small caps, with Financial Services, Capital Goods, and Healthcare as the largest sector weights.
Sector allocation
Note: Numbers may not add up due to rounding.
Market capitalization
Note: Numbers may not add up due to rounding.
Risk-return measures
Performance measures since inception
The product note shows lower beta than the benchmark, positive alpha, and a lower down-capture ratio.
| Instrument | Strategy | Benchmark |
|---|---|---|
| Arithmetic Mean | 15.4 | 12.8 |
| Standard Deviation | 15.8 | 16.0 |
| Beta | 0.7 | - |
| Sharpe Ratio | 0.5 | 0.4 |
| Correlation | 0.7 | - |
| Alpha | 4.3 | - |
| Tracking Error | 11.9 | - |
| Up capture Ratio | 96.3 | - |
| Down capture Ratio | 78.6 | - |
Capital growth
Value of Rs 1 crore invested at launch
Since November 2009, the strategy value disclosed in the product note is Rs 10.6 Cr versus Rs 6.8 Cr for the benchmark.
Strategy
Rs 10.6 Cr
Benchmark
Rs 6.8 Cr
Portfolio
Top holdings
The portfolio's leading disclosed holdings include power systems, chemicals, financial services, engineering, and banking names.
TD Power Systems Ltd
Acutaas Chemicals Limited
Ujjivan Small Finance Bank Limited
MTAR Technologies Limited
Karur Vysya Bank
Contributors
Key contributors
The top contributors reflect long-term gains in select portfolio names.
| Symbol name | Cost | Price | Gain |
|---|---|---|---|
| MTAR Technologies Limited | 1,615 | 5,726 | 255% |
| Acutaas Chemicals Limited | 885 | 3,105 | 251% |
| TD Power Systems Ltd | 397 | 1,131 | 185% |
Stock selection
3Q quality approach
Sundaram PMS describes its stock selection framework through quality business, quality financials, and quality management.
Quality Business
Scalable, growing businesses with reinvestment opportunities and strong moats.
Quality Financials
High ROIC, excellent cash flows, and low debt-to-equity profile.
Quality Management
Visionary management teams with problem-solving ability.
Why Sundaram PMS
A process-led PMS platform
The product note highlights track record, transparency, low churn, risk guidelines, reach, and shared research capabilities.
Strong track record
Low churn
Time-tested stock selection
Reach across country
Transparency
Strict risk guidelines
Shared research capabilities
Calendar years
Calendar year performance
Calendar year returns are shown since the strategy's November 2009 inception period.
| Year | Strategy | Benchmark | Excess return |
|---|---|---|---|
| 2009 | -0.4% | 2.6% | -3.0% |
| 2010 | 3.6% | 17.9% | -14.3% |
| 2011 | -14.7% | -26.4% | +11.7% |
| 2012 | 41.6% | 33.4% | +8.2% |
| 2013 | 28.6% | 4.9% | +23.7% |
| 2014 | 75.8% | 38.9% | +36.9% |
| 2015 | 7.5% | 0.4% | +7.1% |
| 2016 | 3.9% | 5.2% | -1.3% |
| 2017 | 48.6% | 37.6% | +11.0% |
| 2018 | -26.9% | -1.8% | -25.1% |
| 2019 | -1.3% | 9.0% | -10.3% |
| 2020 | 13.6% | 18.4% | -4.8% |
| 2021 | 54.7% | 31.6% | +23.1% |
| 2022 | -0.2% | 4.8% | -5.0% |
| 2023 | 19.5% | 26.5% | -7.0% |
| 2024 | 7.9% | 15.8% | -7.9% |
| 2025 | 6.2% | 7.6% | -1.4% |
| 2026 YTD | 30.4% | -1.4% | +31.8% |
Key features
Themes used in portfolio construction
The portfolio framework combines structural stories with cyclical opportunities and bottom-up stock selection.
Structural Stories
Cyclical Opportunities
Financial Inclusiveness
Phygital Bluechips
Consumption Czars
Manufacturing Maestros
Risks to note
Small-cap portfolios need risk discipline
The note highlights sector concentration risk, market-cap risk, and macro risks as key areas to monitor.
Mitigation includes trimming positions where valuations run ahead, exiting names where the thesis is not playing out, and adding new stocks with better risk-reward and margin of safety.
FAQ
Frequently asked questions
Sundaram Rising Stars PMS is a small-cap oriented portfolio management strategy seeking long-term capital appreciation through companies that can be termed as small caps.
It is positioned for long-term investors who want small-cap exposure and are comfortable with short-term volatility.
The product note states an investment horizon above 5 years.
The primary benchmark is S&P BSE 500 TRI and the secondary benchmark is Nifty Smallcap 250.
No. PMS portfolios are market-linked and do not offer guaranteed or assured returns. Past performance is not indicative of future performance.
Disclaimer
Performance and portfolio data are based on the Sundaram Rising Star Portfolio Product Note dated July 2026, with data as of July 31, 2026. Returns are on a time weighted rate of return basis and are shown in percentage terms.
This page is for informational purposes only and should not be construed as investment advice, an offer, or a solicitation. Securities investments are subject to market risks. Past performance is not indicative of future performance. Investors should read official PMS documents and consult their advisors before investing.
Peer performance is available from the Association of Portfolio Managers in India at APMI.