SUD Life Fund and Investor Philosophy

Fund Philosophy

Contained headline inflation and slower growth is positive for fixed income market. It will not only help RBI to infuse necessary durable system liquidity but also opens up the possibility of further rate cuts. Global growth inflation dynamics also prompted other key central banks to maintain their growth supportive stance. All these factors are favourable for the domestic fixed income market. Hence, in the near term interest rate movement is likely to be range bound with softer bias. However, over the medium term, Government’s commitment towards fiscal deficit target, crude price movement, progress of monsoon and FII flows are likely to impact the market sentiment.

Overview of Market

Overview

Global equity markets rebounded to pre–Middle East conflict levels after a sharp decline in March, despite a significant risein crude oil prices. Domestic equities also staged a recovery; however, market sentiment remained fragile, weighed down by crude oil price volatility and subdued investor confidence. Indian markets have shown stronger upside capture, with Nifty50, Nifty midcap 100 and Nifty SmallCap 250 delivering 7.5%,13.6% and 17.1%, respectively. Domestically, macroeconomic stress indicators showed early signs of stabilization following the March shock, with crude oil price volatility moderating and bond yields stabilizing around the 7% level. On the policy front, major central banks including the US Federal Reserve, the ECB, the BOE, and the RBI kept policy rates unchanged, opting to adopt a wait-and-watch approach to assess the impact of ongoing geopolitical developments while prioritizing financial stability. Global equity markets posted strong gains during the month. The Bloomberg World Large & Mid cap Price Return Index rose by 10% supported by sharp advances across major equity benchmarks, including the CSI 300 (+9.1%), S&P 500 (+10.4%), Nikkei 225 (+17.9%), and KOSPI (+34.0%). MSCI Emerging Markets and MSCI World indices also recorded robust gains of 14.5% and 9.5%, respectively. (All returns in USD)

Fixed-Income and Currency Markets

Sovereign bond yields across most economies remained rangebound, amid concerns over rising inflation and weakening fiscal positions. In India as well, the 10-year government bondyield mirrored movements in the currency and crude oil prices, both of which continue to exert pressure on the fiscal outlook. The US Dollar Index (DXY) ended the month down ~2%,mirroring developments around a ceasefire and opening of the Straits of Hormuz. The rupee continued to remain underpressure, depreciating ~0.1% during the month on continued external shock. Indian Rupee (INR) ended April at 94.92/USD. The INR has declined ~5.5% on a YTD basis.

Flows & sectoral performance

DIIs remained net buyers (~₹51,064 Cr), while FIIs sold off(~₹,70,135 Cr). Every sector closed positive; however, the rallyreflects a liquidity-led, rotation-driven phase rather than abroad-based, earnings-backed sectoral upcycle. Sectors outperforming benchmark: Nifty Realty (+14.4%), NiftyEnergy (+9.5%), Nifty Media (+7.9%) Sectors underperforming benchmark: Nifty IT (-6.5%), NiftyPharma (-2.8%).

Equity

The Nifty is currently trading close to its long-term historical average of around 19.6x FY27E earnings. While the earnings season has begun on a steady note, a distinct sectoral divergence is emerging; the technology sector is facing downgrades, whereas the BFSI segment is holding firm with encouraging early indicators. Given these conflicting signals, the most prudent strategy in this volatile environment remains a stock-specific approach, heavily contingent on management commentary and the evolving outlook for FY27.

Fixed Income

India’s macroeconomic fundamentals are likely to face continued stress if the West Asia conflict continues, potentially exerting further pressure on bond yields and the rupee. A weaker currency, constrained fiscal space and elevated geopolitical risks collectively highlight the importance of maintaining a flexible, research-driven investment approach

Investor Philosophy

Vision

To be the preferred Life Insurer; to ensure Safety, Liquidity and Profitability of funds, encompassing integrity and transparency in its operations, with an overall objective to meet the Reasonable Expectations of Policyholders.

Objectives

To invest the funds in matching assets, to the extent possible, so as to meet the liabilities as and when due To effectively manage the portfolio of investments to yield optimum return To be compliant with all Regulatory norms and to follow prudent practices in operations To carry out the fund management activities in a cost efficient manner

Company Initiative

Provide customers with the best solutions & services

Attract and retain talent and imparts training to the manpower to develop the needed skill sets; In-house Research team and framework for informed fund management decisions. State of the art Investment Management System seamlessly integrating the Front, Mid and Back offices, to effectively manage risks, investment accounting, MIS etc

Funds to maximize your returns