Union Mutual Fund launches Union Equity Savings Fund, an open-ended scheme investing in equity, debt, and arbitrage. The NFO period of the new open-ended scheme is from July 19, 2018 to July 30, 2018.
The investment objective of the new Equity Savings Fund is to pursue capital appreciation and/ or to generate consistent returns by actively investing in a mixture of various equity and equity related securities, arbitrage and derivative strategies, and debt and money market securities.
Mr. Vinay Paharia, Chief Investment Officer of Union AMC, is designated as the Fund Manager of the Union Equity Savings Fund.
The new scheme of the Union Mutual Fund is benchmarked against the CRISIL Short Term Debt Hybrid 75+25 Fund Index. The fund would invest across Large, Mid and Small Cap Stocks. Portfolio of stocks would be chosen according to a bottom-up basis. The Plan aspires to increase equity allocation when markets go down and vice-versa, according to The Economic Times.
The minimum application amount of the new open-ended scheme will be 5,000 Rupees for the first investment and thereafter in multiples of one Rupee.
The new fund scheme is suitable for investors who are looking for long term capital appreciation by investing primarily in a portfolio of equity and equity related instruments.
According to G Pradeep Kumar, Chief Executive Officer (CEO), Union Asset Management Company, the Union Equity Savings Fund is a perfect choice for investors who are in search for “dual benefits of capital growth and stability in returns.”
The active asset allocation strategy that will be implemented by the Union Equity Savings Fund scheme is to invest in a combination of equity and equity related instruments, arbitrage, and debt and money market securities.
The dynamic asset allocation approach that will be adopted by new Union Mutual Fund scheme is expected to generate capital growth through equity portion, said the CEO of Union AMC. The arbitrage portion will help seize mispricing opportunities and the debt portion will offer stability in returns and possibly low volatility,” added Kumar.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]