Sundaram Mutual Fund will launch a dynamic asset allocation fund called Sundaram Balanced Advantage Fund on February 14, which will remain open for subscription until February 28, the fund house said at a press meet held in Mumbai to announce the launch of this scheme.
The open-ended fund scheme will provide accrual income and capital appreciation by dynamically managing the asset allocation between equity, fixed income, REITs (Real Estate Investment Trusts) InvITs (Infrastructure Investment Trusts) and equity derivatives.
According to S Krishnakumar, Chief Investment Officer-Equity, Sundaram Mutual Fund, “Depending on prevailing market and economic conditions, the fund manager will decide asset allocation across these asset classes without giving up tax-efficiency.”
“The investment strategy of the fund will be to build a multi-cap portfolio and allocation will be based on valuation differentials in price to equity ratio across market cap and sectors,” said Krishnakumar.
In terms of asset allocation, the scheme will invest 100 percent of its corpus in equity, fixed income, REITs or InvITs depending on the market condition.
As on January 31, the assets under management (AUM) of the fund house stood at Rs 40,700 crore.
Other features include:
- Plans: Direct and regular.
- Minimum application: For both direct and regular plans--Rs 100 and in multiples of one rupee thereafter.
- Exit load: If units are purchased or switched in from another scheme of the fund are redeemed or switched out within one year from the date of allotment:
-for up to 10 percent of such units – Nil;
-for more than 10 percent of such units: 1 percent of the applicable NAV (net asset value);
-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
-Benchmark: CRISIL Hybrid 50 percent +50 percent Moderate Index
- Fund Managers: S Krishnakumar, S Bharath (Equity), Dwijendra Srivastava (Fixed Income).
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