About Union Focused Fund

Union Asset Management Company has launched a new fund called the Union Focused Fund. It is an open-ended equity fund scheme that would invest in a focused portfolio of equity stocks. The aim of the fund is to build a concentrated portfolio of selected stocks on the basis of the company’s investment philosophy.

Union Focused Fund, the new issue is open for subscription from 15th July 2019 to 29th July 2019. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. 

NFO NameUnion Focused Fund
NFO Launch Date15th July 2019
Last Date for Application29th July 2019
Minimum Investment AmountRs. 5,000
NatureOpen-ended
Fund ManagerMr. Vinay Paharia
RiskModerately high
Exit Load1% for redemption within 365 days
BenchmarkS&P BSE 500 TRI

 

Invest in Union Focused Fund

You should follow the below-mentioned steps if, you wish to invest in this NFO : 

  • Decide the amount you would want to invest in Union Focused Fund.
  • Email Groww support to support@groww.in, specifying the amount and the name of the NFO

Before investing in the NFO, you must remember that it is an open-ended equity oriented mutual fund. Also, the minimum application amount is Rs. 5,000 and in multiples of Re. 1 thereafter.

Further, a minimum additional application amount is Rs. 1,000 and in multiples of Re. 1 thereafter. This is an equity-based mutual fund with investments focusing on a maximum of 30 stocks across all market caps.

The fund targets to collect a minimum subscription of Rs. 10 crores under this scheme during the NFO period.

You should also keep in mind that though there is no entry load but there is an exit load of 1% if the units are switched or redeemed before the expiry of a period of 1 year from the date of allotment.

After the expiry of 1 year there is no exit load of the sale of the units of the fund.   

Investment Objective

The investment objective of this scheme is to generate capital appreciation by investing in a portfolio of selected equity and equity linked securities across various market caps.

Plans and options available for Union Focused Fund

The scheme offers two plans, those are regular and direct. Under each plan there are two options:

  • Growth Option
  • Dividend Option

Under the dividend option, there are three facilities available – dividend re-investment, dividend payout, and dividend sweep.

Union Focused Fund opened for subscription on 15th July 2019 and will stay open till 29th July 2019.

Investment Style And Asset Allocation

Union Focused Fund is an open-ended equity oriented fund that will invest in a focused portfolio of maximum of 30 stocks and has the flexibility to invest in small-cap, mid-cap, and large-cap categories.

The fund will hold these 30 securities as per the conviction of the Union Asset Management Company. The fund house has put in a robust investment process which is based on fundamental research and fair value approach.

65% of the portfolio of the fund will be concentrated with equity and equity-related instruments with a high-risk profile and up to 35% of the assets will be allocated to debt securities with a low-risk profile. Thus, as a whole, the investment strategy of the fund will be moderately risky.

Fund manager

Mr. Vinay Paharia has 15 years of extensive experience of managing funds across multiple strategies. He is the Chief Investment Officer of Union Asset Management Company Private Limited.

Previously he was working with Invesco Asset Management (India) Private Limited where he was successfully managing various equity mutual fund schemes.

Who should invest in Union Focused Fund?

This scheme is good for those investors who are willing to take some risk of investing in the equity market. As this is an open-ended equity fund scheme, so it is suitable for investors who are seeking 

  • Long term capital growth.
  • Investment in focused stocks of equity market based on the prediction of the managers.

Union Asset Management Company

Union Asset Management Company Private Limited is a subsidiary of Union Bank of India involved in the mutual fund investment sector. The result of the new investment process of the Union Mutual Fund based on the fundamental research and fair value approach can be traced to various schemes of the company.

The company provides differentiated investment solutions to its investors.

With the introduction of the Union Focused Fund, it seems to enhance the product basket of the company to suit the needs of the investors.

Conclusion

Investors of this fund should understand that this is an open-ended equity fund with S&P BSE 500 TRI as its benchmark, so there will be a certain amount of risk associated with it.

Moreover, the equity market is highly volatile and nobody can accurately predict the market movements, so you should first match your risk profile with that of the scheme before investing in the same.

Also while investing you should keep in mind that it is a new fund offer and does not have a track record. So, if you are not comfortable in investing in an NFO then you can always look to invest in a mutual fund with a good track record.

Happy Investing!

Disclaimer: The views expressed here are those of the author and not that of Groww.