Mutual Fund News : Union Mutual Fund Introduces Union Multicap Fund

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Union Mutual Fund launches a new scheme – Union Multicap Fund

It is an open-ended equity scheme investing across large cap, mid cap, small cap stocks.

Accordingly, the investment objective of the Scheme is to achieve long term capital appreciation by investing in equity and equity related instruments of large, mid and small cap companies. However, there is no assurance that the Investment Objective of the Scheme will be achieved.

Under normal circumstances, Union Multicap Fund will hold an allocation of 25% to 50% of its assets each in Equity & Equity Related Instruments of Large Cap Companies, Mid Cap Companies and Small Cap Companies, 0% to 25% in Debt and Money Market Instruments and 0% to 10% in Units issued by REITs and InvITs.

As per the Scheme Information Document, Union Multicap Fund will invest at least 75% of net assets in Equity and Equity Related Instruments of large, mid and small cap companies which in the opinion of the Fund Manager offer superior risk reward payoff. The Scheme has the flexibility to invest across market cap subject to minimum investment of 25% of total assets in each of the market caps viz. large, mid and small cap.

The fund manager will follow a combination of the bottom up and top down approach while making investments. The top down approach shall involve analysis of the macro-economic factors, industry evaluation, benchmark industry allocation, market outlook etc. and shall be used to determine the asset allocation. The fund manager will scan the market for opportunities and shall evaluate the individual companies on their merits, leading to the bottom-up investment decision. The Scheme is expected to invest in a portfolio of carefully selected stocks, offering attractive potential growth opportunities.

Union Multicap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI

The scheme will be managed by Mr Vinay Paharia and Mr Sanjay Bembalkar.

The NFO opens for subscription on November 28, 2022 and closes on December 12, 2022. The schemes will reopen for continuous sale and repurchase on December 26, 2022

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

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.