Equity Saving Fund Is Good For Investment, Given 50.24% Returns In 2-Years

Due to diminishing fixed-income rates and the quest for higher returns, investors across the horizon are increasing equities in their portfolios. Investors with a conservative to moderate risk profile who wish to earn good returns two- to three-year time horizon and a conservative to moderate risk profile might consider equity savings funds.

Sundaram Equity Savings Fund - Direct Plan-Growth- Accumulation Plan

This equity saving fund was launched on 23 May 2002 by the Sundaram Mutual Fund. The fund has Asset Under Management worth Rs 333.79 crore. The Net Asset Value of this fund is Rs 55.1226 declared on 25th April 2022. This fund is a medium-sized fund of its category. The expense ratio of this fund is 0.65%, which is close but below its category average.

The fund is rated moderate risky for investment. The minimum investment amount required for this fun is Rs 5000, whereas, for SIT it is Rs 500. There is no lock-in period in this fund. Also, this fund has s 0 exit load. Its benchmark is NIFTY Equity Savings TRI. 

Absolute And Annualised Returns

Lump-Sum Returns

Since its launch, it has delivered 8.31% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	16.46%	16.36%
2 Year	50.24%	22.54%
3 Year	45.66%	13.34%
5 Year	64.56%	10.47%
Since Inception	127.14%	9.21%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	4.94%	9.27%
2 Year	17.97%	16.79%
3 Year	26.53%	15.90%
5 Year	37.47%	12.69%

Portfolio

The fund has 69.52% investment in equities and 9.1% investment in Debt of which 6.37% in Government securities, and 2.74% in funds invested in very low-risk securities. The fund's equity portion is primarily invested in the Financial, Technology, Automobile, Consumer Staples, and Materials sectors. The debt portion of the fund has very low credit quality indicating the quality of borrowers it has lent it to is poor. The fund's top holdings are in Government Of India, Asian Paints Ltd., Tech Mahindra Ltd., Ashok Leyland Ltd., and ICICI Bank Ltd.

Disclaimers

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.