Investors to diversify across all asset classes thro Union Multi Asset Allocation Fund

Union Asset Management Company Private Limited launches Union Multi Asset Allocation Fund

 

  • NFO opened on August 20, 2024 and closes on September 03, 2024
  • Scheme to allocate funds in equity, debt & money market, gold and silver ETFs, and REITs and InvITs 

Union Asset Management Company Private Limited (Union AMC) sponsored by Union Bank of India and Dai-ichi Life Holdings Inc., today announced the launch of its New Fund Offering (NFO), Union Multi Asset Allocation Fund, enabling investors to diversify their investment portfolio across the asset classes in a highly volatile market sentiment marked with global economic uncertainty and lingering geo-political tensions.

The scheme will allocate investors' funds across various asset classes such as Equity and Equity Related Instruments, Debt and Money Market Instruments, Units of Gold and/or Silver Exchange Traded Funds (ETFs), and Units of REITs and InvITs.

The NFO of Union Multi Asset Allocation Fund (An open-ended scheme investing in Equity, Debt, Gold and/ or Silver), opened for subscription on August 20, 2024 and closes on September 03, 2024.

The fund house will invest around 65-80% of the corpus in Equity and Equity Related Instruments by adopting a strategy of top-down and bottom-up stock selection approach with allocation across the market capitalization.

Further, the scheme will allocate around 10-25% in Debt and Money Market Instruments, and would look at metrics such as credit quality, liquidity, interest rates and outlook before the investment. With gold prices in both domestic and international markets scaling new highs in recent months, the scheme has earmarked 10-25% of the fund for buying the Units of Gold ETFs and/ or 0-10% for buying the units of Silver ETFs, as this would provide risk diversification to investors from equity and debt.

Looking to capitalize on the booming commercial real estate sector space, the scheme has set aside 0-10% fund allocation towards investment in the units of REITs and InvITs as and when there is any favourable opportunities in this space.

Mr. Madhu Nair, Chief Executive Officer, Union Mutual Fund, said, "We are an investment-led fund house and believe that asset allocation is one of the most underrated strategies. We want to reinforce this belief to our investors. A diversified asset allocation strategy over the long term would provide superior risk-adjusted returns, rather than chasing asset classes during periods of euphoria. The Union Multi Asset Allocation Fund offers investors the opportunity to participate in all asset class cycles, making it one of a strong candidate for inclusion in every investor's portfolio.

We are thrilled to announce the launch of Union Multi Asset Allocation Fund, which provides a valuable opportunity for investors to diversify their investment risk portfolio in a highly uncertain global economic scenario. As funds are allocated across equity, gold or silver, debt markets, and REITs, investors can earn better returns if any of these asset classes face global or domestic challenges, thereby de-risking themselves from exposure to any single asset class. Additionally, trends over more than a decade show that no single asset has consistently dominated others; all asset classes have experienced periods of both outperformance and underperformance during this time.

The minimum investment required is Rs 1,000, with additional investments of Rs. 1000 and in multiples of Re 1 thereafter. Investors can opt for the Growth option or the Income Distribution cum Capital Withdrawal option. There are no exit load charges on redemption after 15 days from the date of allotment of units; however, a 1% exit load is applicable if redeemed before the completion of 15 days from the date of allotment.

Ms. A. Manimekhalai, MD & CEO, Union Bank of India, said, "Our bank is one of the country's oldest public sector financial entities and provides a bouquet of services across the financial space. Our mutual fund business has managed to grow in leaps and bounds over the past decade. With our robust branch network across the country, we are aiming for a strong investor response to our latest NFO."

For More details and investment




Sivakasi Manikandan, MBA (F&M), [MBA, I & FP], 

FChFP, CIS, AMFI, CII (London)

Managing Director - AISMONEY

No. 21, MBT Road, (Opp) Indian Bank, Walajapet  - 632 513
Ranipet Dt. Tamil Nadu, India.

+ 91 98405 77675
+ 91 96777 66393  (Office)
 
support@aismoney.com

http://www.aismoney.com/

 
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