The Sundaram Ultra Short Term Fund is an open mutual fund that invests in low-risk bonds and money market instruments maturing in three to six months. The fund primarily invests in money market securities issued by the central government, state government, and corporates.
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The Sundaram Ultra Short Term Fund has been in the market for more than 2 years and is currently managed by Sundaram Asset Management Company. To earn higher returns, the fund invests primarily in debt securities and money market instruments with high-quality credit ratings and yield superior liquid funds to maturity.
The fund is offered in two types of plans:
These plans are further offered in three categories:
Name of the Asset Management Company (AMC) |
Sundaram AMC Limited |
Category of the fund |
Money Market Debt Instrument |
Class of the fund |
Debt |
Launch date |
June 24, 2019 |
Benchmark |
CRISIL Ultra Short Term Debt Index |
Open/Close |
Open |
Risk level |
Low to Moderate |
Investment amount |
Minimum investment = INR 1,000 |
Entry load |
Zero |
Exit load |
Zero |
Sundaram Ultra Short Term Fund has the primary objective of generating stable income by investing in a hybrid portfolio of moderate volatility. Accordingly, Sundaram Asset Management Company invests in government or corporate debt paper with superior credit profile and liquidity.
Investments are made only when the securities depict potential returns while investing in debt paper maturing in three to six months.
The constant monitoring also helps the fund house invest in highly liquid debt and money market instruments. You must note that the investments in this fund are not fully protected from market risks and interest rate fluctuations.
In the IDCW payout option, the payment of dividends depends on if your name appears in the unit holders' register and the availability of surplus, computed as per SEBI Regulations.
On the other hand, the dividends are automatically reinvested if you have opted for the IDCW reinvestment or growth option.
Tenure |
Annualized return |
3 month |
0.67% |
6 month |
1.34% |
1 year |
2.61% |
Since inception |
4.30% |
Tenure |
Annualized return |
3 month |
1.00% |
6 month |
2.03% |
1 year |
3.97% |
Since inception |
5.54% |
*Returns are subject to change.
*The investment risk in the investment portfolio is borne by the policyholder.
Listed below are the pros and cons of the fund:
Pros |
Cons |
The fund is suitable for investment horizons of 3-1 year. |
There is no contracted interest or principal repayment like a fixed deposit |
The fund has outperformed its Benchmark: CRISIL Ultra Short-Term Bond TRI over the 3 months and 1 year period. |
The fund has underperformed its Benchmark: CRISIL Short-Term Bond TRI in the 6 months. |
Follows optimum risk mitigation strategies such as spreading investments across various categories of debt paper. |
Not apt for long-term investing. |
For investing in this fund, consider the following benefits of the Sundaram Ultra Short Term Fund:
Sundaram Ultra Short Term Fund is housed under Sundaram Asset Management Company. It is a wholly-owned subsidiary of one of India's oldest and most trusted NBFCs - Sundaram Finance Limited. Since 1996, Sundaram Asset Management Company has managed funds that cater to the investment needs of investors with different risk, reward, and liquidity preferences.
As an entity housed under the Sundaram brand, the Mutual Fund House places the retail investor at the core of its business objectives. Its products across the equity and fixed-income spectrum cater to a wide range of investors' risk, return, and liquidity preferences.
It was amongst the first mutual fund houses to launch schemes under mid-caps, leadership, rural India, and micro caps and services.
Robust processes backed by a strong research team aid the fund house in Its deep commitment to ensuring mutual funds accessibility to all. With over 90 branches across India, Sundaram Asset Management Company also has an office in Dubai and a wholly-owned Singapore subsidiary.
If the following points match your investment goals or strategies, you can choose to invest in this fund:
Considering the benefits of stable returns and shorter portfolio duration, Sundaram Ultra Short Term Fund is ideal for investors looking for stable returns between 3 months to 1 year period. The investments are tactically planned by persistent analysis of the market and analysis of the liquid nature of the underlying investments. It is a reliable investment option as indicated by its positive track record.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.