Minimum Investment Rs. 100 : Sundaram Multi Asset Allocation Fund

Mr. K. Kirubakaran

MFD

Minimum Investment Rs. 100 : Sundaram Multi Asset Allocation Fund

 

Sundaram Mutual Fund announced the launch of the Sundaram Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and money market instruments, and Gold ETFs.

 

The scheme opened for public subscription will close on January 19, 2024. The scheme reopens for subscription and redemption on February 01, 2024.

 

This is an open-ended scheme investing in equity, debt and money market instruments, and gold ETFs.

 

Speaking on the launch of Sundaram Multi Asset Allocation Fund, Mr. Sunil Subramaniam, Managing Director, Sundaram Mutual Fund, 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."

 

Main objective of investing..!

The investment objective of the scheme is to generate long-term capital appreciation by investing in equity & equity-related securities, debt & money market instruments, and Gold ETFs.

There is no guarantee or assurance that the investment objective of the scheme will be achieved. Investors are neither being offered any guaranteed/indicated returns nor any guarantee on repayment of capital by the schemes. There is also no guarantee of capital or return either by the mutual fund or by the sponsor or by the asset management company or by the trustees

.

Minimum Investment  Rs.100

Investors can invest under the scheme with a minimum investment of  Rs.100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

 

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments	Indicative allocations (percentage of total assets)		Risk Profile
	Minimum	Maximum
Equity and equity related instruments	65%	80%	Very High Risk
Debt and money market instruments	10%	25%	Low Risk to Moderate Risk
Gold ETFs as permitted by SEBI from time to time	10%	25%	Very High Risk

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such multi-asset funds. These include:

Name of the fund	Five-year returns
Quant Multi Asset Fund	21.65%
ICICI Prudential Multi-Asset Fund	15.40%
HDFC Multi-Asset Fund	11.92%
Axis Multi Asset Allocation Fund	11.42%
SBI Multi Asset Allocation Fund	10.67%
UTI Multi Asset Fund	8.80%
Source: AMFI (As of January 08, 2024)

The scheme benchmark

The performance of the scheme will be benchmarked against NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (10%) + Domestic Prices of Gold (25%).

 

Rohit Seksaria and S Bharath will be the fund managers for the equity investment of the scheme, Dwijendra Srivastava and Sandeep Agarwal will be looking after the fixed-income aspect of the scheme while Arjun Nagarajan will be looking into investments through gold ETFs.

 

For more details and Investing

Mr. K. Kirubakaran,

AMFI Registered Mutual Fund Distributor

Vadapalani,

Chennai

Mob : 73050 68154

Email : moneykriya@gmail.com

Web Site: www.moneykriya.com

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