Sundaram Mutual Fund launches Equity Plus scheme

MUMBAI: Sundaram Mutual Fund today announced the launch of Sundaram Equity Plus, an open-end scheme.

The scheme will open for subscription on May 4 and close on May 16.

Sundaram Equity Plus aims to invest between 65-85 per cent in equity to give all the tax advantages of a designated equity fund and a maximum of 35 per cent in gold ETF.

The scheme will primarily focus on opportunities in Indian equities with the addition of gold-ETF to provide diversification and exposure to the relative attractiveness of gold in certain phases, Sundaram Mutual Fund's Director-Sales & Marketing, Sunil Subramaniam told reporters here.

The investors will get benefit from equity and gold ETF- two asset classes in terms of capital appreciation and avail tax benefits, Subramaniam said.

The performance of the scheme will be benchmarked to the S&P CNX Nifty index for the equity and equity related instruments and to the price of gold for the investments in gold-ETF, Sundaram Equity Plus Fund Manager, Srividhya Rajesh said.

The objective of this scheme would be to seek capital appreciation by investing in equity and equity-related instruments listed in India to the extent of at least 65 per cent and in gold-ETF up to 35 per cent, Rajesh said.

Sundaram Mutual Fund, a major player in the fund management has an average assets under management (AUM) of about Rs 14,556 crore as on April 2011.