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Sundaram Equity Plus

‘Plus’ used in the scheme name is only in terms of asset allocation and not in terms of return/yield.
Reasons to own the Fund Chart 3: 65% Equity + 35% Gold performance over a decade

• Performing asset classes: Indian equity (a preferred emerging


market) and gold 600
Gold ` 504
• Low correlation between gold and equity means the combination 500
Hypothetical Portfolio ` 477
adds value 400
S&P CNX Nifty ` 462
• Exposure to gold + benefit of tax-free long-capital gains and 300

dividend for the portfolio 200

• Gold acts as an effective hedge against inflation; historically, 100

higher inflation has led to higher gold price 0


January-01 March-11
• Gold supply is limited and this has obvious implications for price S&P CNX Nifty Gold Hypothetical Portfolio(65%-35%)

in face of robust demand


• Gold is source of stability in big equity downturns such as 2000 Source: Bloomberg; Computation: In-house.

and 2008 (refer Chart 1) Hypothetical portfolio comprises 65% of equity (Nifty) and 35% of Gold. Values rebased

to 100 and provided since January 1, 2001 on a daily basis.


Chart 1: Drawdown from peak to trough Nifty - 2000 and 2008
Past performance may or may not be sustained in the future.

20 14.3 Performance (Jan 2001 to March 2011) CAGR (%)


10
Returns (%)

0 Gold 17.1
-0.5
-10
-20 -11.4
Hypothetical Portfolio 16.4
-30
-29.1
-40 S&P CNX Nifty 16.1
-50 -41.8
-60 -56.1 Source: Bloomberg; Computation: In-house. Returns are in % and are on an
Dot Com Crisis Phase Global Financial Meltdown Phase compounded annualised basis.
(March 2000 to October 2000) (January 2008 to October 2008)
Past performance may or may not be sustained in the future
S&P CNX Nifty Gold MSCI World
Product Snapshot
Source: Bloomberg; Computation: In-house. Returns are in % and on an absolute basis.
An asset allocation product offering a window to Indian equity + gold
• Gold still forms a miniscule part of investors’ portfolio worldwide,
Equity component:
(refer Chart 2)
• 65% Equity + 35% Gold combination (Hypothetical) cushions the • Equity portfolio will have a large-cap tilt and invest in the

downside risk of Equity over the long term stocks that are in the S & P CNX Nifty

Chart 2: Gold as a Percent of Global Financial Assets • Aims to create a diversified portfolio with a maximum of 30
Percent Percent
stocks
6% 6%
• Equity part of the portfolio will seek alpha through sector calls
5% 5%
& allocation
4% 4%
• Equity portfolio will also seek alpha through allocation to
3% 3%
stocks (not much through stock picking)
2% 2%
Gold component:
1% 1%
• Gold exposure will be via Indian Gold Exchange-Traded
0% 0%
1968 1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
Funds
Source: CPM Gold Yearbook 2011 For private circulation only

SMS: SFUND to 56767


Toll Free Number: 1800 425 1000
Email: service@sundarammutual.com
Website: www.sundarammutual.com
Sundaram Equity Plus
‘Plus’ used in the scheme name is only in terms of asset allocation and not in terms of return/yield.
Chart 4: Performance during the last decade
100 S&P CNX Nifty
Gold

75.8
71.9
80 Hypothetical portfolio

56.2
54.8
51.5
60

41.4
39.8
36.3

33.2
31.4

29.8
40

24.1
24.0

22.3

20.8

20.1
20.0

17.9
16.7
13.5

10.7
10.5
20

7.1
5.9

3.3
1.3

1.1
0.5
0

-2.8
-4.9
-8.5
-9.1

-20
-14.7

-16.2

-23.3
-40

-51.8
-60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mar
2011

Pattern of three-year returns in the past decade


Average
Parameters S&P CNX Nifty Gold Hypothetical Portfolio returns of the
hypothetical
portfolio is less
3-year Average returns (%) 22.2 17.9 20.7
by 150 basis
points vis-a-vis
Minimum returns (%) -6.9 4.5 3.2

Nifty but with a


Maximum returns (%) 58.8 31.8 46.7
significantly
lower risk.
% Above average returns 49.5 46.7 44.4
% Below average returns 50.5 53.3 55.6
Standard deviation (%) 15.1 5.9 9.5

Combination works well even in bullish Indian equity decade

S&P CNX Nifty Gold Hypothetical Portfolio


Range of returns % About
87% of
% of Average % of Average % of Average
times
occurrence Return occurrence Return occurrence Return
<0 5.9 -2.1 — — — — hypothetical
portfolio has
delivered double
0-5 7.7 2.0 0.3 4.7 1.4 4.5
digit returns as
5 - 10 13.5 7.6 8.7 7.8 11.5 7.7
compared to
10 - 15 13.8 12.1 26.2 12.9 24.3 13.1
15 - 25 15.9 21.0 50.0 19.5 26.0 19.1 73% for Nifty.
25 - 35 15.3 30.2 14.8 27.1 31.4 30.1
35 - 50 26.1 40.1 — — 5.5 38.9
>50 1.9 54.6 — — — —
Total 22.2 17.9 20.7
Source: Bloomberg; Computation: In-house. Returns as on March 31 2011; CAGR based on three-year rolling returns (2,647 periods) since January 2001, computed
on a Daily Basis. Past performance may or may not be sustained in the future; Returns are in %. Hypothetical portfolio comprises of 65% Equity (Nifty) and 35% Gold.
The returns stated in the hypothetical portfolio are only for the purpose of understanding and may or may not result in actual realization.

Scheme information document (SID) and application forms are available at the offices of Sundaram Asset Management, its distributors
Fund Facts and at www.sundarammutual.com. Scheme-Specific Risk Factors: The price of gold is influenced by several global and local
variables. These include global demand-supply trends, purchases/sales by central banks, delays in bringing new mines on line,
Type: An open-end equity scheme Investment macro-economic variables, geo-political factors, seasonality in demand, changes in duty and tariffs, currency and liquidity. These
Objective: To seek capital appreciation by investing variables may have an impact on the prices of gold and consequently on the NAV of the Scheme to the extent investment is made in
in equity and equity-related instruments listed in India gold – ETF. ETF investments will be subject to risks of the underlying scheme including tracking error. The equity portfolio will be
and in gold-ETF Asset Allocation: • Equity and equity subject to market risk, price risk and non-diversification, to name a few. NAV publication /sale /redemption will be available on business
days. Change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to
related instruments: 65% - 85% • Gold ETF (Domestic Investors. Derivative exposure Risk: Model risk, market liquidity risk and basis risk. Overseas Securities Investment Risk: Country risk,
Market): 15% - 35% • Fixed Income and Money currency risk, geo-political risk, legal restrictions and regulation changes in geography other than India General Risk Factors: All
market instruments: 0%-20% • Derivative Exposure: mutual funds and securities investments are subject to market risks, and there can be no guarantee that the fund's objectives

Terms of Offer: ` 10 per unit during NFO period


0%-50% Overseas Securities Investments: 0%-35% will be achieved. The NAV of the scheme may go up or down depending upon the factors and forces affecting the securities
market. Please read the SID before investing. Past performance of the Mutual Fund/Investment Manager/Sponsor does not indicate
Minimum Investment: ` 5,000 and in multiples of ` 1 the future performance of this Scheme. Unitholders in the scheme are not being offered any guaranteed /assured returns. Sundaram
Equity Plus is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future
Options: Growth, Dividend (Payout & Re-Investment) prospects or returns. General Disclaimer: This document is for information purposes only and is not and should not be construed
Exit Load: 1% if redeemed within 12 months from as a prospectus, scheme information document, offer document, offer solicitation for an investment and investment advice, to name
date of allotment Benchmark: S&P CNX Nifty for the a few. Information in this document has been obtained from sources that are reliable in the opinion of Sundaram Asset Management.
equity and equity-related investments (65% of the Opinions expressed do not necessarily represent that of Sundaram Mutual Fund or Sundaram Asset Management or Sundaram Trustee
Finance Ltd. (Liability limited to ` 1 lakh). Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram
portfolio) and to Gold price in INR terms for the rest of Company or Sundaram Finance, the sponsor. Statutory Details: Mutual Fund: Sundaram Mutual Fund (Trust) Sponsor: Sundaram
the portfolio (35%) Fund Manager: Srividhya Rajesh
Trustee Company Ltd.

www.sundarammutual.com Sundaram Mutual Fund