Sundaram Multi Asset Allocation Fund Sundaram Multi Asset Allocation Fund
Sundaram Multi Asset Allocation Fund

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Why Multi Asset Allocation Funds?

Multi asset allocation funds diversify across asset classes, giving investors several benefits
portfolio volatility

Reduces portfolio volatility and limits negative impact during extreme events

superior risk-adjusted returns

Exposure to uncorrelated assets for superior risk-adjusted returns

asset allocation process

Eliminates timing risk from the asset allocation process

Why Sundaram Multi Asset Allocation Fund?

  • The fund will invest at least 65% in equity, 25% in gold and the rest in fixed income, giving investors the benefit of favorable equity taxation
  • The fund seeks to generate capital through equity, and consistent returns through fixed income
  • Gold does well when equity doesn't, acting as a shock absorber in the fund - it protects the investment from market volatility and adds to the equity returns

Gold - The Shock Absorber

Why Gold?
  • Gold and Equity have a low correlation between them, making them ideal to blend to deliver returns.
  • Returns of Gold are also well above that of other metals or basket of commodities.
  • Currency depreciation and Fed rate cuts also help enhance gold returns.
The table below showcases returns delivered by Equity and Gold across events.
Nifty 50 (%) Gold (%)
Currency volatility and market correction Jun '13 to Aug '13 -6.3 24.6
Market correction post-election rally Mar '15 to Feb '16 -17.7 11.2
Covid pandemic Jan '20 to Mar '20 -28.6 0.7
Ukraine-Russia conflict Jan '22 to Jun '22 -9.0 6.3

Source: Bloomberg; Computation: In-house. Data from Jan 2010 to Sep 2023. Past performance may or may not be sustained in the future.

Investment Strategy

Equity Strategy

  • Multi Cap Portfolio of 50 - 60 stocks diversified across sectors.
  • Large cap allocation at 75 - 80%.
  • Use midcaps to enhance returns.

Fixed Income Strategy

  • Objective: To provide an attractive yield with a high-quality portfolio.
  • Predominantly invest in AAA rated bonds and G-secs with medium duration, with focus on accrual.

Gold
Strategy

  • Gold portfolio of large liquid ETFs.
  • Generate returns from: Commodity appreciation, average annual INR depreciation of 3-4%.
  • Diversify with uncorrelated asset class to reduce portfolio volatility.

Fund Details

Scheme Type

An open ended multi asset allocation fund investing in Equity, Debt & 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.

Benchmark

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

Fund Managers

Mr. Rohit Seksaria & Mr. Clyton Richard Fernandes
Mr. Dwijendra Srivastava & Mr. Sandeep Agarwal (Fixed Income)
Mr. Arjun Nagarajan (Gold ETFs)

Plans

Regular & Direct Plans

Options

Growth
Income Distribution cum Capital Withdrawal (IDCW): Payout, Reinvestment and Transfer

Minimum Application Amount

Lumpsum: First Investment:  100 and multiples of  1 thereafter

SIP

Monthly:  100 (Min. 6 instalments)
Weekly:  1,000 (Min. 6 instalments)
Quarterly:  750 (Min. 6 instalments)

Exit Load

If units purchased or switched in from another scheme of the fund are redeemed/ switched out

  • Within one year from the date of allotment
    • For up to 30% of such units: Nil
    • For more than 30% of units: 1% of applicable NAV
  • After 1 year from the date of allotment: Nil

Download Fund Documents

Product
Note
Product
Presentation
Scheme Information Document
Key Information Memorandum

This product is suitable for investors who are seeking*

  • Long term capital growth.
  • Equity & Equity related Securities, Debt & Money Market Instruments, Gold ETFs.

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

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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