Sundaram Mutual Fund has launched Sundaram Equity Savings Fund, an open-ended scheme that aims to invest in equity, arbitrage and debt.
Talking about the portfolio allocation during a press conference today, the team shared that the equity exposure will tilt in favour of large caps. The arbitrage investment will primarily be through cash futures arbitrage on individual stocks while the fixed income investments will be made in high credit quality fixed income instruments.
Commenting on the launch of Sundaram Equity Savings Fund, Sunil Subramaniam, MD & CEO, Sundaram Mutual said, “This is an offering which moderates the riskiness of pure equity with the safety of arbitrage and fixed income thus offering a wholesome blend of risk and reward while maintaining equity taxation”.
S.Bharath, Fund Manager–Equity and Dwijendra Srivastava, CIO- Fixed Income will manage the fund. Nifty Equity Savings Index will be the scheme’ benchmark.
The AMC expects to collect around Rs. 150 crore during the NFO.
