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NFO alert: Sundaram Mutual Fund launches Sundaram Multi Asset Allocation Fund

18 September 20245 mins read by Angel One
In the following article we shed some light on NFO, the fund’s objective, fund allocation, fund managers and the performance of peer Multi Asset Allocation Fund.
NFO alert: Sundaram Mutual Fund launches Sundaram Multi Asset Allocation Fund
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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.

What is a Multi Asset Allocation Fund?

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.

Investment Objective

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

Asset Allocation

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

Where will the scheme invest?

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.

Benchmark

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

Fund Managers

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)

Historical Returns of Multi Asset Allocation Funds

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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