NFO Alert: Union Mutual Fund launches Union Business Cycle Fund.Everything you need to know

Union Mutual Fund announced the launch of the Union Business Cycle Fund. The scheme will open to the public on 13 February 2024 and close on 27 February 2024. The scheme will be reopened for continued sales and buybacks within five business days from the date of allotment.

What kind of mutual fund scheme is this?

It is an open-ended equity scheme that follows a cyclical investment theme. This product is suitable for investors seeking:

• Capital growth over time.
• Investing in stocks and stock-related products with primarily cyclical themes.

What is the main purpose of investing in this fund?

The scheme’s investment objective is to generate long-term capital growth by investing with a cyclical focus through allocations between sectors and stocks at different stages of the economic cycle. However, there is no guarantee that the investment objectives of this plan will be achieved.

Harshad Patwardhan Chief Investment Officer; Union AMC“If you aim to produce consistent performance as a professional wealth manager, it is important to accept the cyclical nature of the market and treat the long term as a series of shorter periods. ‘Where are you in the cycle?’ “Adjusting portfolio positioning can help reduce risk.” Optimize opportunity costs and profits. ”

How can I invest in this system?

Investors can invest under this scheme with minimum investment amount.INR1000 per plan/option in multiples of Re 1. There is no investment limit.

Under normal circumstances, the scheme’s asset allocation would be as follows:

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such cyclical funds, allowing willing investors to take advantage of returns comparable to the total return of securities in this particular index. . These include:

How is the performance of this scheme benchmarked?

The performance of this scheme is benchmarked on the Nifty 500 Index. The performance of this scheme is benchmarked against the Total Return Variant (TRI) of the index.

The Trustee has the right to change the benchmark for performance evaluation of the scheme from time to time in accordance with SEBI Regulations and general guidelines in this regard, including the guidelines issued by SEBI and AMFI for uniformity in benchmarking of mutual fund schemes. I reserve it. , and the requirement to issue an addendum regarding such changes.

Are there any ingress or egress loads to this scheme?

This scheme does not include an “entry load”. This means that investors do not have to pay anything to secure returns with this scheme. “Exit load” is also calculated as follows:

– 1% if the units are redeemed/exchanged within one year from the date of allotment.

– None if redeemed or exchanged after one year from the date of allotment of units.

Who will manage this plan?

Mr. Sanjay Venbarkar and Mr. Hardik Bora are the designated fund managers of the scheme.

Does the Fund involve any inherent risks?

As detailed in the scheme information document, the scheme involves “very high risk” and is ideal for investors who want to understand that their principal is only exposed to very high risk. However, investors should consult their financial advisor if they have any questions. whether the product is suitable for them.