NFO - Sundaram Balanced Advantage Fund
Sundaram Balanced Advantage Fund - NFO
Fund Type An open-ended dynamic asset allocation fund.
Fund Period 14 Feb 2020 - 28 Feb 2020.
Investment Objective
To provide accrual income and capital appreciation by investing in a mix of equity, debt, REITs/InvITs and equity derivatives that are managed dynamically.
Plans & Options
Regular & Direct Plan-Growth, Dividend (Payout, Reinvestment and Sweep)
Minimum Application Amount
Lumpsum:
First Investment: Rs. 100/- and multiples of Re. 1/-
First Investment: Rs. 100/- and multiples of Re. 1/-
SIP:
Rs. 100/- (Monthly) Rs. 750/-(Quarterly) Rs. 1000/- (Weekly)
Rs. 100/- (Monthly) Rs. 750/-(Quarterly) Rs. 1000/- (Weekly)
Benchmark Index CRISIL Hybrid 50:50 Moderate Index
Fund Managers
(i) Krishnakumar S & Bharath S (Equity)
(i) Krishnakumar S & Bharath S (Equity)
(ii) Dwijendra Srivatsava (Fixed Income)
Load Structure
If redeemed within one year from the date of allotment Up to 10% of units - NIL For more than 10% of units - 1%
Investment Strategy
The scheme aims to dynamically manage the asset allocation between net long equity, Fixed Income and REITs/InvITs.
Accordingly, the fund manager will decide asset allocation between equity, debt and REITs/InvITs depending on prevailing market and economic conditions.
Among the metrics considered for deciding the debt-equity mix at any point of time will be the interest rate cycle, equity valuations (P/E, P/BV, Dividend Yield, Earnings yield, market cap to GDP ratio etc), medium to long term economic outlook etc.
The objective of the equity strategy will be to build a portfolio of companies diversified across major industries, economic sectors and a market capitalization that offer an acceptable risk-reward balance.
Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.
The long exposure inequities can be offset by equity derivatives.
This proportion will depend on the fund manager’s views.
The investment strategy on the derivative side includes identifying and investing in arbitrage opportunities between spot/cash and futures prices of individual stocks.
The scheme will use various arbitrage opportunities. Similarly, the scheme may at a later date, unwind the trade by selling cash position and buying in e futures markets.
The fund manager, after careful analysis, may also decide to roll over his position, if the market conditions are favourable.
The investments in debt and money market instruments would be aimed at maintaining a balance between safety, liquidity and return on investments.
The debt and money market portion of the portfolio shall be actively managed with an endeavour to generate superior risk-adjusted returns.
The Fund Manager shall formulate a view of the interest rate movement based on various parameters of the Indian economy, as well as developments in global markets.
Investment views/decisions inter alia may be taken on the basis of the following parameters:
Returns offered relative to alternative investment opportunities
Liquidity of the security
Prevailing interest rate scenario
Quality of the security/instrument (including the financial health of the issuer)
The maturity profile of the instrument
Credit Rating for the instrument
Any other factors considered relevant in the opinion of the Fund Management team.
Further, the portfolio of the scheme will be constructed in accordance with the investment restrictions specified under the regulations which would help in mitigating certain risks relating to investments in the securities market
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