Sundaram Balanced Advantage Fund: NFO review

The NFO of Sundaram Balanced Advantage Fund would remain open for subscription till February 28. The scheme reopens for ongoing subscription and redemption from March 12.

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Sundaram Mutual has launched a dynamic asset allocation scheme called Sundaram Balanced Advantage Fund. The New Fund Offer (NFO) of the scheme would remain open for subscription till February 28. The scheme reopens for ongoing subscription and redemption from March 12.

The new scheme aims to provide accrual income and capital appreciation by dynamically managing the asset allocation between equity, fixed income, REITs/InvITs and equity derivatives. The investment strategy of the fund would be to build a multi cap portfolio – allocating based on valuation differentials in P/E across cap curves and sectors, with a high quality diversified fixed income portfolio focusing on generating accrual income, said the fund house.

  • 11.03%Annualized Return for 3 month
  • >3 years Suggested Investment Horizon
  • N.ATime taken to double money
S Krishnakumar, CIO - Equity, and S Bharath, equity fund manager, would manage the scheme. The performance of the scheme will be benchmarked against CRISIL Hybrid 50% plus 50% Moderate Index.


The fund house says that stock selection in this scheme would be based on bottom-up in-house research using a 5S framework (simple businesses, sound management, scalable opportunities, sustainable competitive advantage, steady and sustainable cash flows).

Should you invest?

Mutual fund advisors generally do not recommend NFOs unless they bring something new to the table. SR Srinivasan, Founder, SriNivesh, a Sebi registered, fee-only advisory firm, says that even though balanced advantage category is a good one, investors should stick to established schemes.
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“When you have big schemes managing money well in the past years, it makes little sense to invest in a new scheme. If this scheme performs and proves its mettle, investors can invest in them later. It is not necessary to jump at the NFO,” says Srinivasan.

“It is important to understand that many schemes have failed to stick to such mandates and retail investors should trust the performance records only. According to me, retail investors can give this one a miss,” adds Srinivasan.

Scheme at a glance:

NFO Close: 28-Feb-2020
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Category: Dynamic Asset Allocation
Minimum Investment : Rs 100
Exit Load: For units in excess of 10% of the investment,1% exit load for redemption within 1 year.
Benchmark: CRISIL Hybrid 50+50 Moderate Index
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