Publish Date:
Union Mutual Fund has introduced a new fund offer – Union Gilt Fund
It is an open-ended debt scheme investing in government securities across maturity. A relatively high interest rate risk and relatively low credit risk.
The investment objective of the Scheme is to generate income through investment in a portfolio comprising of government securities of various maturities. However, there is no assurance that the Investment Objective of the Scheme will be achieved.
Under normal circumstances, Union Gilt Fund will hold an allocation of 80% to 100% of its assets in Central and State Government securities, Treasury Bills and Cash Management Bills of Government of India, and 0% to 20% of its assets in Call money market, Triparty Repo, Reverse Repo in Government Securities and Treasury Bills.
The investment strategy of the scheme is to generate income through investment in a portfolio comprising of government securities of various maturities. The fund manager will seek to generate returns commensurate with minimal credit risk by investing in a portfolio comprising of securities issued and guaranteed by Central and State Government in line with the asset allocation pattern of the Scheme.
The asset allocation of the Scheme will be steadily monitored and it shall be ensured that investments are made in accordance with the scheme objective and within the regulatory and internal investment restrictions prescribed from time to time.
Union Gilt Fund’s performance will be benchmarked against CRISIL Dynamic Gilt Index.
The fund will be managed by Mr Parijat Agrawal and Mr Anindya Sarkar.
The NFO opens for subscription on July 18, 2022 and closes on August 01, 2022. The scheme will reopen for continuous sale and repurchase on August 17, 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 Re 1 thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal option.