Sundaram Global Brand Fund Analysis


Sundaram Global Brand is an international mutual fund scheme from Sundaram Mutual Fund.

As the very name suggests, it is an international fund that invests globally.

It is not restricted by any sector or region or theme.

This is unlike most international mutual fund schemes available for subscription to the Indian investor.

Sundaram Global Brand Fund is an open-ended Fund of Fund scheme investing in Sundaram Global Brand Fund, Singapore as a Feeder Fund.


Sundaram Global Brand


FOFs (Overseas)

Fund Manager

Mr. Rohit Seksaria

Mr. Ratish Varier


Dow Jones Industrial Average TRI Index


sundaram mutual fund

Features of Sundaram Global Brand Fund

The fund invests only in the top 30 listed leading global brands.

It has dual diversification benefits, geographic as well as portfolio wise.

Due to dual diversification, it is usually less volatile compared to other international funds.

It can benefit from any rupee weakness.


Additional reading: Click Here to read why you should not invest based on past returns

Investment process of Sundaram Global Brand Fund

The fund will be investing in the top 30 brands globally.

Preference would be given to brands that have geographically diversified revenues.

The 30 companies would be further divided into three categories:

  1. Category one would consist the top 10 brands
  2. Category two would consist the next 10 brands.
  3. Category three would consist the remaining 10 brands.

Brands belonging to category one would have a weighting allocation of 5% each.

Brands belonging to category two would have a weighting allocation of 3% each.

Brands belonging to category three would have a weighting allocation of 2% each.

At no given point would a single stock hold more than 10% and a sector more than 50%.



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What is an international mutual fund?

An international mutual fund is any fund that invests outside Indian markets.

This could be both region specific or theme specific.

International mutual funds can either invest directly or in another fund, better known as fund of fund.

Their correlation with the Indian markets would differ depending upon where you invest geographically.

The lower the correlation, the better for diversification.

International mutual funds work as a very good hedge against currency volatility.



Sundaram Global Brand Fund Portfolio





JP Morgan, Inditex, Anheuser -Bud

Volkswagen, HSBC, Kellogg’s


Hermes International

Hewlett – Packard


No change

No change





No change

No change


sundaram mutual fund

An interesting feature of this fund and at the same time what differentiates it from the other few handful of global funds is the manner in which it views brands, both quantitatively as well as qualitatively.

A strong brand represents a loyal consumer base which in turns reflects faith, a stronger brand presence means a greater competitive edge which can be better ascertained by the fact that most companies in the fund’s portfolio are leaders in their respective fields.

Additional reading: Click Here to read everything you need to know about a Mutual Fund Nav


Difference between global and international mutual fund

An international mutual fund is one that invests in specific countries or regions.

A global fund on the other hand is not restricted by specific countries or regions.

A Europe based fund is an international mutual fund since it invests only in Europe, a specific region.

A global brand fund or a global mining fund is a global fund since it invests across the globe with no region restrictions.



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Taxation for Sundaram Global Brand Fund

International mutual funds for taxation purpose are treated as debt mutual funds.

The taxation rules that are applicable on debt mutual funds are applicable on international mutual funds too.

It is the same for all international mutual funds irrespective of the theme or geography.

Meaning a European based international mutual fund will be taxed just as a US, emerging markets or Asia based.

A technology based international mutual fund will be taxed in the same manner as a natural resources fund.


Taxation for international mutual funds can be better classified further into LTCG & STCG


For long term capital gains, taxes will be charged on gains held for more than 36 months.

The LTCG rate is 20% after indexation.



Short term capital gains tax is charged on gains held for less than 36 months.

Short term capital gains are added to your income and taxed as per your income tax slab.

International mutual funds are also charged 0.005% stamp duty like any other mutual fund.


Advantages of International mutual funds

Low Co-relation

International mutual funds have a very low co-relation to Indian based mutual funds.

This stands true for global funds as well.

Due to a low co-relation, international mutual funds provide diversification in the true sense.

More often than not investors invest in various funds with the aim of diversification but end up unknowingly investing in the same set of companies or strategy via different schemes.



The biggest advantage of international mutual funds is that they provide diversification.

They are very rarely the first fund of a new investor or even take up the major portion of anyone’s portfolio.

They are usually an afterthought or take up a very small portion of a mutual fund portfolio.

They invest in companies and markets that Indian based mutual funds do not.



An international mutual fund can give you exposure to companies and markets that an Indian based mutual fund cannot.

For example, it can invest in a search engine giant like Alphabet which is not possible with Indian based mutual funds.

Another advantage with exposure is the option to pick a company with an attractive valuation which is listed across various geographies.

For example, nestle is listed both in India as well as in foreign markets.


Disadvantages of international mutual funds


For the purpose of taxation, international mutual funds are treated as debt mutual funds.

This makes it less desirable than Indian based equity mutual funds which have a far more attractive taxation system.

If you are an investor that frequently invests and redeems based on random advice then this makes it even far less desirable.


Understanding the market

Whatever international mutual fund you pick, understanding the fund and its underlying strategy is very important.

This is true for an international mutual fund as it is for an Indian based mutual fund.

Sadly far too many investors go about choosing funds based on their recent returns with no understanding and end up frequently entering and exiting funds.

This only adds to their charges with exit loads and taxation.


    You should not be investing in international mutual funds merely because you can.

  You should only if you have a plan and a very good understanding of the fund and the underlying strategy of the fund.

  Sadly many investors venture into international mutual funds out of fear of missing out, that is not a good enough reason to invest in international mutual funds.


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Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

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