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Sundaram Mutual Fund has launched Sundaram Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt, money market and gold ETFs.
The fund will invest a minimum of 65% in equity and can invest 10-25% each in gold ETFs and fixed income instruments, giving investors the benefits of equity taxation.
In a press release, Sunil Subramaniam, Managing Director, Sundaram Mutual said, “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. Thus, the fund is suitable as a long-term investment, and for aggressive pure equity investors who wish to take a short-term tactical allocation to Gold.”
Rohit Seksaria and S Bharath will manage the equity part while Dwijendra Srivastava and Sandeep Agarwal will take care of debt part.
