As a result, there is little to no correlation between gold and equity, making them the perfect combination to provide higher risk-adjusted returns for the entire portfolio. Speaking on the launch of Sundaram Multi Asset Allocation Fund, Sunil Subramaniam, Managing Director, Sundaram Mutual said, “Sundaram Multi Asset Allocation Fund is an ideal vehicle for long term risk adjusted capital appreciation. In addition to the potential of Equity combating inflation in the medium term, Gold also provides a hedge against currency depreciation. Besides, given the inevitability of business cycles, there are always times when the economy goes through a slowdown following rapid expansion – a period in which Gold generally turns out to be the best performing asset class. Thus, SMAAF is suitable as a long-term investment, and for aggressive pure equity investors who wish to take a short-term tactical allocation to Gold.”