Mutual Fund News : Union Mutual Fund Introduces Union Hybrid Equity Fund

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Union Mutual Fund has launched Union Hybrid Equity Fund.

It is an open-ended hybrid scheme that will be investing predominantly in equity and equity related instruments, along with debt & money market instruments.

The investment objective of the scheme is to achieve long term capital growth and generate income from a portfolio, predominantly of equity and equity related securities. The scheme will also invest in debt & money market instruments. However, there is no assurance that the investment objective of the scheme will be achieved.

Under normal circumstances, 65% to 80% of the funds portfolio will be invested in Equity and Equity related instruments. It will hold 20% to 35% of its assets in Debt & Money Market Instruments, and has flexibility to invest up to 10% of its assets in Units issued by REITs and InvITs.

To achieve the investment objective, the Scheme will make investments as per the asset allocationpattern. The Scheme will invest predominantly (atleast 65%) in equity and equityrelated instruments, which in the opinion of the Fund Manager offer superior risk reward payoff. Topursue its investment objective, the Fund Manager has the discretion to invest in various equity andequity related instruments across market capitalisation, debt and money market instruments and unitsissued by REITs and InvITs and such other securities as specified, within stipulated limits and byadhering to various norms and regulations.

The AMC shall follow a combination of the bottom up and top down approach while making investments under the Scheme. The top down approach shall involve analysis of the macro-economic factors, industry evaluation, benchmark industry allocation, market outlook etc. and shall be used todetermine the asset allocation including cash levels and/or the target sector allocation.

The investment team shall also scan the market for opportunities and shall evaluate the individualcompanies on their merits, leading to the bottom-up investment decision

Investment in Debt and Money Market Instruments will be as per asset allocation pattern and will be guided by credit quality,liquidity, interest rates and their outlook.

The Scheme may also invest in the units of REITs and InvITs for diversification, subject to condition sprescribed by SEBI from time to time.

Union Hybrid Equity Fund’s performance will be benchmarked against CRISIL Hybrid 35+65 Aggressive Index (TRI).

It will be managed by Mr Vinay Paharia, Mr Parijat Agrawal and Mr Hardick Bora.

The NFO opens for subscription on November 27, 2020, and closes on December 11, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment of units under NFO.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re. 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).