The new fund offer or NFO of the scheme is open for subscription and it will close on January 19. The scheme will reopen for subscription and redemption from February 1.
The investment objective of the scheme is to generate long term capital appreciation by investing in equity and equity related securities, debt and money market instruments and gold ETFs.
The scheme will be managed by Rohit Seksaria and S Bharath (equity investments), Dwijendra Srivastava and Sandeep Agarwal (debt investments), and Arjun Nagarajan (Gold ETFs).
The scheme will be benchmarked against NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (10%) + Domestic Price of Gold (25%).
The minimum application amount is Rs 100 and multiples of Re 1 thereafter per application. The minimum application amount for monthly SIP is Rs 100 with minimum six instalments. The minimum application amount for quarterly SIP is Rs 750 with six instalments. For weekly SIP, the minimum application amount is Rs 1,000 with six instalments.The scheme will offer regular and direct plans.The scheme will invest a minimum of 65% in equity and 10-25% each in Gold ETFs and fixed income instruments, giving investors the benefits of equity taxation.
“Sundaram Multi Asset Allocation Fund is an ideal vehicle for long term risk adjusted capital appreciation. In addition to the potential of Equity combating inflation in the medium term, Gold also provides a hedge against currency depreciation. Besides, given the inevitability of business cycles, there are always times when the economy goes through a slowdown following rapid expansion – a period in which Gold generally turns out to be the best performing asset class,” said Sunil Subramaniam, Managing Director, Sundaram Mutual Fund.
“Thus, SMAAF is suitable as a long-term investment, and for aggressive pure equity investors who wish to take a short-term tactical allocation to Gold,” he added.
