Mutual Fund News : Union Mutual Fund Introduces Union Retirement Fund

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Union Mutual Fund has Introduced a new scheme – Union Retirement Fund

It is an open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier).

Accordingly, the investment objective of the scheme is to generate long term capital gains by investing in a mix of securities comprising of equity, equity related securities and debt instruments as per the asset allocation pattern of the Scheme with a view to provide a retirement investment solution to investors.

However, there is no assurance that the Investment Objective of the Scheme will be achieved.

Under normal circumstances, Union Retirement Fund will hold an allocation of 65% to 100% of its assets in Equity and Equity related instruments, 0% to 35% in Debt and Money Market Instruments, 0% to 10% in Units issued by REITs and InvITs.

As per the Scheme Information Document, the scheme seeks to generate long-term capital gains by investing in a mix of securities comprising of equity, equity related securities and debt instruments as per the asset allocation pattern of the Scheme with a view to provide a retirement investment solution to investors. The portfolio of the Scheme will be constructed on the basis of a combination of top down and bottom up approach. The Fund Manager has the discretion to invest in equity and equity related instruments, debt and money market instruments and such other securities as specified, in line with the asset allocation pattern of the Scheme and within stipulated limits and by adhering to various norms and regulations.

Union Retirement Fund’s performance will be benchmarked against S&P BSE 500 Index

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

The NFO opens for subscription on September 01, 2022 and closes on September 15, 2022. The scheme will reopen for continuous sale and repurchase on September 29, 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.

[Read: Union Retirement Fund: Will it Prove to be a Worthwhile Investment for Retirement?]