Sundaram Hybrid Fund-Series-U is a close-ended hybrid fund scheme having moderately high risks associated with it. Investors who can take a relatively high risk can invest in such type of funds. The fund is designed to generate income over the medium to long term where investment is mainly done in fixed income securities and equity and equity-related instruments.
Here are a few things one must know before investing in this fund:
New Fund Offer time period
The NFO opened on April 17, 2017, and closes on April 26, 2017.
To generate capital appreciation and current income through a judicious mix of investments in equities and fixed income securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
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Liquidity of the Scheme
The scheme intends to invest predominantly in liquid instruments and also maintain optimal cash/cash equivalents to mitigate any liquidity risk.
There is no entry or exit load applicable in the scheme.
Minimum Application Charges
Minimum subscription amount for such scheme is Rs 5000, which can be increased in multiples of Rs 10 thereafter per application.
Benchmark is divided particularly in two broad categories:
Where the tenor of the scheme is up to 1100 days – CRISIL Debt Hybrid 75 + 25% Nifty 50 Index.
Where the tenor of the scheme is above 1100 days and up to 1830 days – Mix of the Following indices CRISIL AAA Medium Term Bond Index (65%) + CRISIL AA (10%) Medium Term Bond Index + Nifty 50 Index 25%
It is, however, to be noted that one should consult one’s financial adviser before investing in this fund. Moreover, one must link one’s investments to one’s financial goals of life.