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.