Investment Objective
Sundaram Aggressive Hybrid Fund, formerly known as Principal Hybrid Fund, aims to provide current income and long-term capital appreciation by investing in a portfolio of equity, equity related instruments and fixed income securities.
Investment Strategy
- The fund allocates 65%-80% of the portfolio in equities and 35%-20% in fixed income securities to maintain a well balanced asset allocation strategy.
- The fund follows a diversified equity strategy with a higher allocation to large-cap companies while also making allocations to capture opportunities available in the mid and small-cap space.
- It aims to build a high-quality fixed income portfolio with a focus on accrual income. It primarily invests in AAA and AA rated bonds to generate yields while maintaining a high quality credit profile.
- It aims to balance market fluctuations by generating steady accrual income to offset uncertain equity returns during market downturns, while in up-markets, the accrual income combines with equity appreciation to generate overall returns.
Who Should Invest
- Investors seeking a hybrid investment instrument, which has the flexibility to benefit from growth opportunities offered by equities and benefit from regular income generated from fixed income instruments.
- Conservative investors preferring lower volatility than equity funds.
- Those looking for long term capital appreciation and income.