Sundaram Mutual Fund has launched a new open-ended hybrid scheme, Sundaram Multi Asset Allocation Fund, to generate long-term capital appreciation. The scheme will invest in equity & equity-related securities, debt & money market instruments, and gold ETFs. The New Fund Offer (NFO) opens on January 5, 2024, and closes on January 19th, 2024. The minimum subscription amount is Rs 100. There is no entry load, but an exit load of 1% may apply for redemptions within 365 days under certain conditions.
Multi-allocation funds are like pre-made investment baskets filled with diverse assets like stocks, bonds, and sometimes even gold or real estate. They aim to simplify investing by spreading your money across different asset classes, seeking to balance potential returns with risk management, all in one convenient fund. It’s like picking a ready-made fruit platter instead of buying each fruit individually.
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
| Investments | Indicative Allocation | Risk Profile |
| Equity and equity related instruments | 65-80% | Very High |
| Debt and Money Market Securities | 10-25% | Low to Medium |
| Gold ETFs | 10-25% | Very High |
Equity and equity-related securities, Government securities, corporate debt, Short Term Deposits, Money market instruments like Certificate of Deposits (CDs), Commercial Paper (CPs), Tri-party Repo, bills re-discounting, Repo of corporate debt securities Securitised Debt, Gold ETFs, Units of Mutual Funds Schemes Securities Lending & Borrowing and Any other domestic fixed income securities per submitted by SEBI.
NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (10%) + Domestic Prices of Gold (25%)
Rohit Seksaria & Mr. S Bharath (Equity),
Dwijendra Srivastava and Sandeep Agarwal (Fixed Income)
Arjun Nagarajan (Gold ETFs)
All managers having more than 10 years experience)
| Scheme Name | AuM (in Rs Cr) | 6M | 1Y | 2Y | 3Y | 5Y | 10Y |
| Quant Multi Asset Fund – Direct Plan – Growth | 1,153.27 | 21% | 24% | 20% | 31% | 26% | 16% |
| SBI Multi Asset Allocation Fund – Direct Plan – Growth | 2,711.59 | 16% | 25% | 16% | 15% | 15% | 12% |
| Motilal Oswal Multi Asset Fund – Direct Plan – Growth | 109.95 | 9% | 15% | 8% | 7% | – | – |
| UTI Multi Asset Allocation Fund – Direct Plan – Growth | 980.99 | 19% | 31% | 17% | 16% | 13% | 11% |
| HDFC Multi-Asset Fund – Direct Plan – Growth | 2,151.35 | 12% | 19% | 12% | 15% | 15% | 12% |
| Axis Multi Asset Allocation Fund – Direct Plan – Growth | 1,265.75 | 8% | 14% | 4% | 10% | 14% | 11% |
| Nippon India Multi Asset Fund – Direct Plan – Growth | 2,020.43 | 14% | 24% | 12% | 15% | – | – |
| Tata Multi Asset Opportunities Fund – Direct Plan – Growth | 2,090.96 | 12% | 20% | 14% | 17% | – | – |
| ICICI Prudential Multi-Asset Fund – Direct Plan – Growth | 27,924.43 | 16% | 24% | 20% | 25% | 19% | 17% |
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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