4 days ago

Sundaram Equity Savings Fund Offers Growth With Lower Volatility

Sundaram Equity Savings Fund Offers Growth With Lower Volatility
Sundaram Equity Savings Fund: Balancing growth with lower volatility · thehindubusinessline.com

Sundaram Equity Savings Fund is a mutual fund that mixes shares, debt and arbitrage investments.

This mix aims to provide some growth while taking less risk than a pure equity fund.

The fund changes its share allocation depending on whether the market looks expensive or cheaper.

It usually keeps 30% to 40% of its total money in net equity exposure.

Recently, it increased its investment in smaller companies and reduced its exposure to large companies.

Its returns were weaker than many similar funds over the past year.

However, its longer-term returns were better than the category averages.

The fund may suit conservative investors with a two- to four-year investment horizon.

Key facts

Assets under management
₹1,032 crore
Seven-year compounded return
9% annually
Typical net equity allocation
30%–40% of overall assets
Latest long equity exposure
81%
Latest net equity exposure
37%, implying about 44% arbitrage exposure
Five-year rolling return
12% CAGR versus 9.7% for the category
Suggested investment horizon
Two to four years

Sources

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