PRODUCT SNAPSHOT

BALANCED ADVANTAGE FUND FEATURES BENEFITS OF BALANCED ADVANTAGE FUND • Improves risk adjusted returns through dynamic asset Dynamic Management allocation Capital Asset allocation • Overcome emotions / sentiment - dynamic allocation Appreciation Netlong Equity: 0% to 100% eliminates biases using valuation model to determine equity -through a multi-cap (managed through derivatives) allocation equity portfolio Debt: 0% to 100% • Capture Equity taxation benefits MARKET CAP PROFILE Balanced Fixed Income & Others, 25.8% Large Cap, Advantage 29.8% Fund Accrual Income -through High quality Derivative debt portfolio -used to manage Net long equity exposure Mid Cap, 11.2% Derivatives, REIT/InVIT, 25.5% THE PANDEMIC DROP AND EVENTUAL RECOVERY!!! Small Cap, 4.0% 3.7% 120.00 Source: in house calculations as on August 31, 2021 Note: 44.7% in unhedged portion

100.00 INDUSTRY CLASSIFICATION 80.00 Banks 19.9%2 1.5% Software 12.6% 60.00 14.5% Consumer Non… 8.2% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9.8% 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6.9% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Petroleum Products 8.4% 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 ------5.2% 2 3 3 4 3 3 3 4 4 5 5 4 5 6 6 5 6 6 6 Insurance 3.1% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ------5.1% 4 6 3 9 2 3 0 7 0 6 1 8 5 4 5 2 9 8 1 Finance 9.3% 2 1 2 0 0 1 3 0 2 2 1 1 0 2 1 2 0 0 2 Chemicals 1.0% 4.6% Nifty Index S&P 500 Dow jones Emerging market Auto Ancillaries 0.9% 3.4% 3.4% Indices across the world fell 25% to 40% in a month and eventually Pharmaceuticals 4.6% Industrial Products 0.8% 3.3% recovered Construction 0.5% 3.2% Risk averse investors would not have been able to stomach the drop Telecom - Services 2.1%3 .2% Consumer Durables 2.9% Investing in BAF reduces volatility 2.0% Fund Benchmark Cement & Cement… 2.67% The data is taken from Feb 2020 to June 2020 Power 2.22.%5% Source: Bloomberg; Computation: Inhouse Ferrous Metals 1.27.%2 % Auto 1.6% 3.9% TOP 5 HOLDINGS – FIXED INCOME Retailing 11.4.6%% Construction… 1.52%.1 % Security Ratings Weight (%) Transportation 11.1.3%% Pesticides 0.18.%2 % HDFC . CRISIL AAA 4.2 Non - Ferrous Metals 0.17.%2 % Healthcare Services 0..7% LIC Housing Finance . CRISIL AAA 2.7 Fertilisers 00.1.4%% Others 0.9% 4.6% NABARD CRISIL AAA 2.3 S&P BSE 200 is the Equity portion (50%) of CRISIL Hybrid 50-50 REC . CRISIL AAA 2.3 index; Corporation . CRISIL AAA 2.3 Net equity exposure of the fund is extrapolated to 100% and Source: In house computation as on August 31, 2021 calculated with BSE 200 Index’s total exposure.

PORTFOLIO Source: In-house calculations as on August 31, 2021 Top 10 stocks Weight (%) OUTLOOK ON THE TOP SECTORS AND OUR STOCK ICICI Bank 6.1 POSITIONING IS AS UNDER: 4.3 Consumer Non Durables: We see this to be a space with State Bank of 3.4 reasonable certainty. We believe that there will be early recover HDFC 3.4 in this segment once things start normalising. Our key holdings 3.0 are HUL, and . 2.7 HDFC Bank 2.6 Financials: We continue to believe in the medium to long term potential of the sector, with a focus on companies that have more TCS 2.5 earnings resilience in the medium term. Our key holdings are 2.4 HDFC Ltd, HDFC Bank and ICICI Bank. 2.3

www.sundarammutual.com August 2021 Sundaram Asset Management Software: We are underweight in Software. Smaller companies may PE investors valuing the company on par with global tech giants we are face strong challenge in the light of the disruption due to COVID with confident on the future prospects for the Company. growth and profitability being impacted. Our key holdings are Infosys, HCL and Tech Mahindra. YTM OF THE PORTFOLIO - 3.87% Petroleum Producs: The key holding in this sector is Reliance Industries DURATION OF THE PORTFOLIO - 0.86 YEARS and given its ongoing hugely successful transformation to a technology company as evidenced by its minority stake sale to Facebook and other

` 10000 invested Fixed Income - Asset Allocation

15,884 14,412 13,686 Fixed Income 62.8%

10,000

Cash & Others 28.5%

Reverse Repo./Treps 8.7%

Investment Fund Benchmark TRI Nifty 50 TRI

DYNAMIC ALLOCATION INVESTMENT STRATEGY

THREE - PRONGED INVESTMENT STRATEGY

EQUITY HEDGING/ARBITRAG E FIXED I NCOME

Capital Appreciation Enhances Income Generation of Income Diversified across sectors Primarily Cash Futures High credit quality Sector picks – Top down Arbitrage on individual Stock picks – Bottom up stocks

• Dynamic allocation involves straddling across Equity and Debt using a rule-based approach • Aim to generate superior risk-adjusted returns over a longer investment horizon

PORTFOLIO POSITIONING / STRATEGY / OUTLOOK August saw the Sensex deliver returns of 9.4% over July to 57,552. US/China infection curves, with moderate overweights in financials, chemicals, industrial , telecom and more Chinese regulatory crackdowns, supply/value chain restrictions and the Fed’s hint of a underweights in staples December taper were the key global highlights. On the domestic front, drop in COVID-19 fatalities, On the Arbitrage portion, exposure broadly remained at 25%. During August-derivatives expiry, pickup in mobility/business resumption, export strength and a Rs.6.3tr fiscal package was the Market-wide rollovers have been ~91%, around the 3-month average. focus. The stock futures open interest stood at Rs 1,678 bn Vs Rs 1,666 bn, up 0.7% m-o-m, while index August witnessed South Korea raise its policy rates by 25bps on concerns around demand futures open interest, including bank nifty, moved up 23% m-o-m. Gross rollover spreads during over-heating. This was a surprise to the markets where the rate hike was delivered even as the the expiry stood at ~30bps, well lower than the trends in previous months. infections curve in the country had not appreciably eased. This was the first developed economy central bank to have raised rated after COVID-19. The rollover data continues to point towards a possible narrow market action ahead. Increased leveraged bets in the market, viz., from retail, has been a prominent driver for the improvement in On the domestic front, both manufacturing and services PMI datapoints for July reported growth. spreads since the second quarter of last year. This data needs to be watched over the next few The RBI left its rates unchanged in its monetary policy in August, retained its growth projection for months to gauge direction of retail long interest. FY22 and pushed its inflation forecasts. The RBI continued to reiterate its pro-growth stance with continued policy accommodation. Going ahead, return expectations in arbitrage segment have to be aligned to two factors: The Q1Fy22 earnings season continues played out in-line with expectations with very few pockets • the current level of interest rates, which remain benign in the short term with yields firming up of disappointment. A few near-term factors such as tightness in container markets, increased slightly in the longer end of the curve container freight rates and semi-conductor chip shortages could cast growth bottlenecks on the • the extent to which leverage bets increase and sustain in the derivative segment exports. Nevertheless, improved momentum in segments such as domestic manufacturing, housing and On Fixed Income & REITs/Invits, allocations stood at 16% and 4% respectively. infrastructure should act as catalysts for sustaining the growth across a broader universe of sectors. The Fixed Income exposure is primarily into high quality short duration papers of under four years. The focus is to run a conservative portfolio as far as credit is concerned, while maintaining the The fund uses a trailing 12-Month Nifty PE valuation framework with a monthly rebalancing, to liquidity and maturity in the above band. decide on the equity allocation band. Considering normalized earnings, the average monthly Nifty trailing PE continued to point towards an equity allocation in the range of 30-45 percent. PORTFOLIO ALLOCATION The Fund continued to maintain equity exposure in the higher end of the band similar to the previous months given the earnings momentum across sectors. Particulars Actual As of end Aug’21, the fund holds at 44% in net long equities, ~16% in fixed income, ~25% towards arbitrage opportunities, 4% in REIT/Invit and the rest towards cash and margin requirements. Equity and Equity Related Instruments – Gross 70.2% The portfolio is well diversified across sectors given the synchronous recovery across global economies. Disproportionate focus is selection of stocks with resilient earnings, strong balance Hedged Equity Positions i.e. Derivatives 25.5% sheet, sound management pedigree and visible medium-term growth catalysts Unhedged Equity – Net Long 44.7% The macro-trade driven by lower interest rates and a cyclical uptick in economy have resulted in valuation re-rating across sectors and stocks, relative to previous year. Incremental stock REIT/InVIT 4.0% selection efforts are guided by earnings-driven upsides against the stock valuations. The portfolio continued to remain similar to previous month, diversified across sectors Fixed Income, Money Markets, Cash and others 25.8%

www.sundarammutual.com August 2021 Sundaram Asset Management REGULATORY DISCLOSURES PERFORMANCE (%) ` 10,000 INVESTED

Benchmark Additional Benchmark Additional Period Fund Benchmark Period Fund TRI (%) TRI (%) TRI (`) Benchmark TRI (`)

Since inception 27.8 23.5 36.5 Since inception 14,412 13,686 15,884

PERFORMANCE DETAILS OF OTHER FUNDS JOINTLY MANAGED BY S. BHARATH & RAHUL BAIJAL (EQUITY)

1 Year (%) 3 Years (%) 5 Years (%) Funds Fund Benchmark Fund Benchmark Fund Benchmark

Sundaram Large and Mid Cap 59.1 61.3 14.1 15.3 16.5 16.4

Sundaram Select Focus* 49.2 52.2 14.0 14.9 15.5 15.7

Sundaram Equity Hybrid Fund* 42.3 36.3 12.9 14.0 12.9 13.6

• The fund managers (Rahul Baijal and Bharath S) jointly manages 4 funds of the mutual fund. • Different plans shall have a different expense structure. • The performance details are provided for Regular Plan Growth Option. • Performance data is as of August 31, 2021.

Common to all schemes: Past performance may or may not be sustained in the future and may not necessarily serve as a basis for comparison with other investments. NAV per unit provided for the scheme(s) pertain to Regular Plan - Growth Option and is considered `10 on the inception date. Load and taxes are not considered for computation of returns. Additional Benchmark: Nifty 50. All data provided herein above are as on August 31, 2021 unless otherwise mentioned.

FUND FACTS RISKOMETER

Fund Sundaram Balanced Advantage Fund

Scheme Type An open ended dynamic asset allocation fund The investment objective of the Scheme is to provide Investment Objective accrual income and capital appreciation by investing in a mix of equity, debt, REITs/InvITs and equity derivatives that are managed dynamically. Benchmark CRISIL Hybrid 50:50 Moderate Index

S. Bharath & Rahul Baijal Investors understand that their principal will be at (Equity Portion) Fund Managers Moderately High Risk Dwijendra Srivastava (Fixed This product is suitable for investors who are seeking* Income Portion) l Income generation and long-term capital appreciation l Investment in a dynamically managed asset allocation fund, consisting of a portfolio of Plans & Options Regular & Direct Plan; Growth, Dividend (Payout, equities, debt, derivatives and REITs/InvITs*Investors should consult their financial advisers if Re-investment and Sweep) in doubt about whether the product is suitable for them. *Investors should consult their financial advisors if in doubt about whether the product is suitable for Lumpsum: First Investment: Rs.100/- and multiples of them. Re.1/- thereafter Minimum Application SIP: Rs.100/- (Monthly); Rs.750/-(Quarterly); Rs.1000/- amount (Weekly – processed on Wednesday/Next business day, if Wednesday is not a business day) and in multiples of Re.1/- thereafter. If redeemed /switched out within one year from the date of allotment” Upto 25% of units: NIL. For more than 25% of Exit Load units: 1% of applicable net asset value If redeemed after 1 year from the date of allotment – NIL.

DISCLAIMER General Disclaimer: This document is issued by Sundaram Asset Management; an investment manager registered with the Securities and Exchange Board of India and is produced for information purposes only. It is not a prospectus, scheme information document, offer document, offer and solicitation, to name a few, to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. Sundaram Asset Management in the discharge of its functions, may use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. Copies of the Statement of Additional Information, Scheme Information Document and application form with key information memorandum may be obtained from the offices of Sundaram Mutual offices and its authorized distributors or downloaded from www.sundarammutual.com . Scheme Specific Risk Factors: Investment in Equities and Equity related instruments involve risks such as Stock market Volatility, Equity Price Risk, Dependency Risk, Temporary Investment Risk, Non diversification Risk, Regulation-change Risk etc. For detailed scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer scheme information documents available online and at branches/Investor Service Centres; also at www.sundarammutual.com.Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, 1882. Liability for sponsors is limited to ₹ 1 lakh. Sponsors: Sundaram Finance. Investment Manager: Sundaram Asset Management Company. Trustee: Sundaram Trustee Company. Mutual Fund Investments are subject to market risks, read all Scheme related documents carefully

Talk to investement advisor or call: 1860-425-7237 SMS: SFUNDto56767 Visit: www.sundarammutual.com

www.sundarammutual.com August 2021 Sundaram Asset Management