Sundaram Equity Savings Fund

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Description:

An open ended scheme investing in equity, arbitrage and debt.

Objective:

The investment objective of the scheme is to generate income by investing in debt and arbitrage opportunities in the cash and derivatives segment of the equity market, and capital appreciation through a moderate exposure in equity.

Suitability:

This product is suitable for investors who are seeking long term capital appreciation and income through investment in equity & equity related instruments, arbitrage opportunities, and investments in debt and money market opportunities.

Overview:
  • Equity Savings Funds (ESFs) are a type of hybrid scheme, which invests in debt, arbitrage and equity (Min gross equity allocation 65%)
  • Gross equity portion is partially hedged thereby reducing the equity exposure
  • Hedging is done mostly through income generating arbitrage trades to reduce risk
  • Debt portion along with Arbitrage generate income
  • Unhedged equity expected to provide capital gains
  • Hence fund aims to provide returns higher than debt funds with risk lower than pure equity funds
  • Highly tax efficient – since gross equity exposure is at least 65%, these funds enjoy equity taxation which is much more tax friendly than taxation of debt funds
High Risk

This product is suitable for investors who are seeking*

  • Long term capital appreciation and income,
  • Investment in equity & equity related instruments, arbitrage opportunities, and investments in debt and money market opportunities

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Past performance may or may not be sustained in future.

Fund Facts

Inception December 2018
Scheme Type An open ended scheme investing in equity, arbitrage and debt
Benchmark Nifty Equity Savings Index
Fund Manager Equity - S Krishnakumar & S Bharath; Fixed Income - Dwijendra Srivastava
Investment Objective The investment objective of the scheme is to generate income by investing in debt and arbitrage opportunities in the cash and derivatives segment of the equity market, and capital appreciation through a moderate exposure in equity.
Average AUM for the month of Mar Crores
Plans Regular, Direct
Options
Growth
Dividend – Payout
Dividend Sweep
Dividend Re-Investment
Min. Initial Investment: Rs. 5,000 and in multiples of Rs. 1 thereafter per application.
SIP
Weekly - Rs. 1,000
Monthly – Rs. 250
Quarterly - Rs. 750
Entry Load NIL.
Exit Load (both plans) If units purchased or switched in from another scheme of the Fund are redeemed or switched out within 1 Year from the date of allotment:
  • for up to 25% of such units - exit load: Nil.
  • for more than 25% of such units – exit load: 1% of applicable Net Asset Value (NAV)
If units purchased or switched in from another scheme of the Fund are redeemed or switched out after 1 Year from the date of allotment - NIL.