Sundaram Alternate Assets
Sundaram Emerging Leadership Fund PMS
A mid and small-cap portfolio designed to identify high-quality emerging businesses that can scale into future market leaders, while maintaining a disciplined bottom-up investment process.
July 2026 update
Since inception CAGR
18.1%
Value of Rs 1 Cr at launch
Rs 14.6 Cr
1Y strategy return
35.6%
Market cap tilt
73% mid/small
Objective
To seek long-term capital appreciation with investments predominantly in mid and small-cap companies.
Since inception
18.1%
Strategy CAGR vs 12.3% for S&P BSE 500 TRI
2026 YTD
24.9%
Calendar year performance through July 2026
1 year return
35.6%
Vs 3.0% for S&P BSE 500 TRI
Suggested horizon
3+ years
Designed for long-term mid and small-cap investors
Fund details
Mid and small-cap PMS for emerging leaders
The strategy is positioned for long-term investors who can tolerate short-term volatility while targeting scalable companies with strong management quality.
Strategy
Mid and small-cap PMS
Monthly update
July 2026
Data as of
July 31, 2026
Investment horizon
Above 3 years
Inception
June 2010
Primary benchmark
S&P BSE 500 TRI
Secondary benchmark
Nifty Midcap 150
Fund manager
Mr. Darshan Engineer
Weighted average market cap
Rs 68,935 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.
S.E.L.F vs S&P BSE 500 TRI
| Period | Strategy | Benchmark | Excess |
|---|---|---|---|
| SI | 18.1% | 12.3% | +5.8% |
| 10Y | 16.7% | 13.6% | +3.1% |
| 5Y | 15.5% | 12.4% | +3.2% |
| 4Y | 19.5% | 13.3% | +6.2% |
| 3Y | 21.9% | 11.9% | +10.0% |
| 2Y | 18.7% | 0.4% | +18.3% |
| 1Y | 35.6% | 3.0% | +32.6% |
| 6M | 26.8% | 2.0% | +24.8% |
| 3M | 8.1% | 3.8% | +4.3% |
| 1M | -2.0% | 2.2% | -4.2% |
S.E.L.F vs Nifty Midcap 150
| Period | Strategy | Benchmark | Excess |
|---|---|---|---|
| 5Y | 15.5% | 17.1% | -1.6% |
| 4Y | 19.5% | 19.9% | -0.5% |
| 3Y | 21.9% | 17.8% | +4.0% |
| 2Y | 18.7% | 2.9% | +15.9% |
| 1Y | 35.6% | 8.3% | +27.2% |
| 6M | 26.8% | 7.7% | +19.1% |
| 3M | 8.1% | 5.2% | +2.9% |
| 1M | -2.0% | 1.6% | -3.6% |
Portfolio allocation
Sector and market-cap positioning
The portfolio is led by Capital Goods and Financial Services, with a combined 73% allocation to mid and small-cap companies.
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 positive alpha, lower beta than the benchmark, and a lower down-capture ratio.
| Instrument | Strategy | Benchmark |
|---|---|---|
| Arithmetic Mean | 17.9 | 12.8 |
| Standard Deviation | 15.6 | 15.9 |
| Beta | 0.8 | - |
| Sharpe Ratio | 0.7 | 0.4 |
| Correlation | 0.8 | - |
| Alpha | 6.2 | - |
| Tracking Error | 9.5 | - |
| Up capture Ratio | 106.2 | - |
| Down capture Ratio | 80.1 | - |
Capital growth
Value of Rs 1 crore invested at launch
Since June 2010, the strategy value disclosed in the product note is Rs 14.6 Cr versus Rs 6.4 Cr for the benchmark.
Strategy
Rs 14.6 Cr
Benchmark
Rs 6.4 Cr
Portfolio
Top holdings
The leading disclosed holdings include power systems, engineering, capital goods, chemicals, and industrial names.
TD Power Systems Ltd
MTAR Technologies Limited
Bharat Heavy Electricals Ltd
Acutaas Chemicals Limited
KEI Industries Limited
Contributors
Key contributors
The top contributors reflect long-term gains in select portfolio holdings.
| Symbol name | Cost | Price | Gain |
|---|---|---|---|
| TD Power Systems Ltd | 319 | 1,131 | +254% |
| Hitachi Energy India Limited | 9,727 | 32,175 | +231% |
| MTAR Technologies Limited | 1,754 | 5,726 | +227% |
Positioning
Sector bets versus benchmark
The portfolio remains meaningfully overweight Capital Goods and Healthcare, while underweighting several benchmark-heavy sectors.
| Sector | Overweight / Underweight |
|---|---|
| Capital Goods | +26.4 |
| Healthcare | +6.4 |
| Automobile and Auto Components | +1.3 |
| Realty | +0.2 |
| Consumer Durables | +0.1 |
| Financial Services | -2.1 |
| Information Technology | -2.6 |
| Power | -3.5 |
| Fast Moving Consumer Goods | -5.6 |
| Oil, Gas & Consumable Fuels | -7.1 |
Stock selection
EASE portfolio framework
The product note describes the portfolio through emerging leaders, asset-light businesses, scalable companies, and excellent cash conversion.
Emerging leaders
Clean and high-quality promoters or management teams.
Asset light and high ROCE
Preference for businesses with efficient capital use and attractive returns.
Scalable companies
Mid-cap to large-cap and small-cap to mid-cap transition candidates.
Excellent cash conversion
Focus on businesses with strong operating cash conversion.
Key features
What defines the strategy
The strategy combines Sundaram's mid and small-cap strength with a concentrated, multi-sector portfolio approach.
Differentiated yet concentrated mid and small-cap portfolio
Multi-sector approach
Stocks with market cap less than Rs 800 billion
EASE portfolio framework
Early-stage businesses that can become tomorrow's large caps
Wealth multiplier themes
Financialisation of the economy
Phygital Bluechips
Consumption Czars
Export Voyagers
Manufacturing Maestros
Calendar years
Calendar year performance
Calendar year returns are shown since the strategy's June 2010 inception period.
| Year | Strategy | Benchmark | Excess return |
|---|---|---|---|
| 2010 | 9.2% | 13.9% | -4.7% |
| 2011 | -2.9% | -26.4% | +23.5% |
| 2012 | 28.7% | 33.4% | -4.7% |
| 2013 | 18.3% | 4.9% | +13.4% |
| 2014 | 69.9% | 38.9% | +31.0% |
| 2015 | 3.4% | 0.4% | +3.0% |
| 2016 | 6.1% | 5.2% | +0.9% |
| 2017 | 41.8% | 37.6% | +4.2% |
| 2018 | -11.6% | -1.8% | -9.8% |
| 2019 | 6.5% | 9.0% | -2.5% |
| 2020 | 31.4% | 18.4% | +13.0% |
| 2021 | 46.3% | 31.6% | +14.7% |
| 2022 | -6.8% | 4.8% | -11.6% |
| 2023 | 22.8% | 26.5% | -3.7% |
| 2024 | 23.2% | 15.8% | +7.4% |
| 2025 | 6.8% | 7.6% | -0.8% |
| 2026 YTD | 24.9% | -1.4% | +26.3% |
Risks to note
Mid and small-cap portfolios need risk discipline
The note highlights sector concentration risk, especially in Capital Goods and NBFCs where the portfolio has meaningful exposure.
Market-cap risk is relevant because mid and small caps can correct more sharply than large caps during volatile periods.
Macro risks include INR pressure, bond yields, foreign flows, and the need for continued liquidity support and policy stability.
FAQ
Frequently asked questions
It is a PMS strategy seeking long-term capital appreciation through investments predominantly in mid and small-cap companies.
It is positioned for long-term investors seeking mid and small-cap exposure and who are comfortable with short-term volatility.
The July 2026 product note states an investment horizon above 3 years.
The primary benchmark is S&P BSE 500 TRI and the secondary benchmark is Nifty Midcap 150.
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 Emerging Leadership Fund 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.