NFO update: Sundaram Balanced Advantage Fund

Sundaram Asset Management Company, one of the major players in the mutual fund space with Assets under Management (AUM) of about Rs 40,700 crore as on January 31, 2020 has announced the launch of its newly open-ended equity scheme, Sundaram Balanced Advantage Fund.The New Fund Offer (NFO) opens for subscription on February 14, 2020 and closes on February 28, 2020. The scheme reopens for ongoing subscription and redemption from March 12, 2020. This fund falls under Balanced Advantage Fund category.

Objective: It is an open-ended equity scheme that would invest in equity, fixed income, REITs/InvITs and equity derivatives. It will dynamically manage the assets between these categories. The primary objective of the scheme is to provide accrual income and capital appreciations by investing in a mix of instruments, stated earlier and managed dynamically.

Strategy: The investment strategy of the fund would be to build a multi-cap portfolio. Stocks would be selected based on the bottom-up research using a 5S framework (Simple businesses, Sound management, Scalable opportunities, Sustainable competitive advantage and Steady and sustainable cash flows). Besides, the valuation will be analysed based on valuation differentials in price to earnings across cap curves and sectors. For debt part, high quality diversified fixed income portfolio would be created focussing on generating accrual income. 

Fund Manager: The scheme will be together managed by  S. Krishnakumar, CIO - Equity, as well as the equity fund manager, S. Bharath. The performance of the scheme will be benchmarked against CRISIL Hybrid 50per cent plus 50per cent.

Other funds managed by the fund managers are as follows:

The following table shows the return generated by funds in this category. The return varies from negative 2.38 per cent to 13.08 per cent in last one year.