4 days ago
Sundaram Equity Savings Fund Offers Growth With Lower Volatility
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.
Sundaram Equity Savings Fund has delivered a 9% compounded annual return over seven years.
The ₹1,032 crore fund invests across equities, debt and arbitrage, with net equity exposure typically ranging from 30% to 40%.
Its valuation-based model reduces equity exposure when BSE 200 valuations rise and increases it when valuations fall.
The fund recently raised small-cap exposure to about 20% of its equity portfolio while reducing large-cap exposure to 60–70%.
Although one-year performance was below average, its five-year and three-year rolling returns exceeded category averages.
- Who
- Sundaram Equity Savings Fund, managed for conservative investors seeking a hybrid allocation.
- What
- The fund’s asset allocation, portfolio strategy, performance and suitability were assessed.
- Where
- The fund invests in Indian equity, debt and arbitrage markets, including securities linked to the BSE 200 index.
- When
- The analysis was published on August 29, 2026; the latest portfolio cited was as of July 2026.
- Why
- It is viewed positively because of its valuation-based allocation model and strong long-term risk-adjusted performance, despite weaker one-year returns.
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









