Sundaram Mutual launches Sundaram Multi Asset Allocation Fund NFO

January 5, 2024, MUMBAI: Sundaram Mutual launches a New Fund Offer (NFO) - Sundaram Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and money market Instruments and Gold ETFs. The investment objective of the scheme is to generate long term capital appreciation by investing in Equity and Equity related Securities, Debt and Money Market Instruments and Gold ETFs.

Sundaram Multi Asset Allocation Fund will invest a minimum of 65% in Equity and can invest 10-25% each in Gold ETFs and Fixed Income Instruments, giving investors the benefits of equity taxation.

Equity-oriented hybrid mutual funds attempt to deliver a better risk adjusted return than pure equity mutual funds by adding a component of a less volatile asset class - fixed income, giving up only some of the higher returns that would accrue to a pure equity fund. In the case of our fund, we add a third asset class in commodity ETFs - specifically Gold.

Why Gold? Gold, while volatile over the medium term, does well when equities do not. This is because it is viewed by large institutional investors as a Safe Harbor during extreme economic and political situations. Equity generally underperforms during such scenarios, but Gold often performs better by either delivering positive returns or less negative returns effectively acting as a Shock Absorber.

Gold and Equity thus show low or negative correlation, rendering these two asset classes as an ideal blend that can deliver superior Risk Adjusted Returns to the combined portfolio.

Speaking on the launch of Sundaram Multi Asset Allocation Fund, Mr. Sunil Subramaniam, Managing Director, Sundaram Mutual said, “Sundaram Multi Asset Allocation Fund is an ideal vehicle for long term risk adjusted capital appreciation. In addition to the potential of Equity combating inflation in the medium term, Gold also provides a hedge against currency depreciation. Besides, given the inevitability of business cycles, there are always times when the economy goes through a slowdown following rapid expansion - a period in which Gold generally turns out to be the best performing asset class. Thus, SMAAF is suitable as a long-term investment, and for aggressive pure equity investors who wish to take a short-term tactical allocation to Gold.”

The Equity portion of the fund will be managed by Mr. Rohit Seksaria and Mr. S Bharath, fixed income portion by Mr. Dwijendra Srivastava and Mr. Sandeep Agarwal, and Mr. Arjun Nagarajan for Gold ETFs. The benchmark chosen for Sundaram Multi Asset Allocation Fund is the NIFTY 500 TRI for 65% Equity plus NIFTY Short Duration Debt Index for 10% Fixed Income plus Domestic Prices of Gold for 25% Gold ETF investments.

The New Fund Offer (NFO) opens for subscription on January 5, 2024 and closes on January 19, 2024. The scheme reopens for ongoing subscription and redemption from February 1, 2024.

About Sundaram Asset Management Company:

Sundaram Asset Management Company, a significant player in the fund management space along with its subsidiaries, has assets under management of over INR 67,000 crores as on December 31, 2023. The brand has a strong retail focus with ~1.3 million active investors and 81 branches across the country. Sundaram Asset Management Company has a bouquet of sixteen equity, five hybrid and nine fixed-income funds catering to diverse investor preferences.

For more information on Sundaram Mutual and its products, please visit www.sundarammutual.com.

For Media Enquiries:

Harit S. Tank

Phone: 022 - 30100215 | Mobile: +91 98194 55607

Email: harittank@sundarammutual.com or harit.smf@gmail.com

Fund Synopsis:

Scheme Name: Sundaram Multi Asset Allocation Fund.

Scheme Type: An open-ended scheme investing in equity, debt and money market Instruments and Gold ETFs.

Investment Objective: To generate long term capital appreciation by investing in Equity & Equity related Securities, Debt & Money Market Instruments and Gold ETFs.

Asset Allocation:

New Fund Offer Period: The Scheme will open for subscription on January 5, 2024 and close on January 19, 2024

Benchmark: NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (10%) + Domestic Prices of Gold (25%).

Fund Managers:

• Mr. Rohit Seksaria & Mr. S Bharath (Equity)


• Mr. Dwijendra Srivastava & Mr. Sandeep Agarwal (Fixed Income)


• Mr. Arjun Nagarajan (Gold ETFs)

Minimum Application Amount: For both Regular and Direct Plan: ₹100 and multiples of ₹1 thereafter per application.

SIP: Monthly: ₹100 (Min. 6 instalments), Quarterly: ₹750 (Min. 6 instalments), Weekly: ₹1000 (Min. 6 instalments)

Load Structure

Entry Load: N/A

Exit Load: If units are redeemed, withdrawn by way of SWP within 365 days from the date of allotment

• Up to 30% of the units: Nil


• More than 30% of the units: 1% of applicable net asset value

If units are redeemed, withdrawn by way of SWP after 365 days from the date of allotment: Nil

Further, exit load will be waived on intra-scheme and inter scheme switch-outs/STP.

Riskometer

Sundaram Multi Asset Allocation Fund is suitable for investors who are seeking*

• Long term capital growth


• Equity & Equity related Securities, Debt & Money Market Instruments, Gold ETFs.