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Best Union Hybrid Mutual Funds

Union Mutual Fund is a part of the Union Bank of India. Incorporated in 2009, this organisation seeks to create a potential asset management system in India through the extensive network of Union Bank of India. As of March 2021, this AMC had assets under management valued at Rs.5240.41 crore.

This AMC currently offers over 15 mutual fund schemes, comprising equity, debt and hybrid funds. This includes the best Union hybrid mutual funds.

Hybrid mutual funds make investments in a mix of different asset classes. In most cases, these asset classes include debt and equity assets. Some schemes also comprise gold, real estate, and international equities in their portfolio.

The investment in both debt and equity instruments helps avoid concentration risk and achieve diversification. An appropriate mix of these two instruments makes these funds less risky than pure equity funds and generate higher returns than a standard debt fund. In most cases, hybrid funds use a balanced portfolio to generate income in the short run and achieve wealth appreciation in the long run.

Hybrid funds allocate assets based on the scheme objective and kind. Broadly, hybrid funds are of two types, namely, debt- and equity-oriented. There are further classifications under these categories. A debt-based fund will invest predominantly in debt securities, thereby offering more stable returns. An equity-oriented scheme will allocate a majority of its corpus in equity and related instruments, maximising returns. The debt component in these funds offers protection against tremendous market fluctuations, and the equity part provides a potential for earning high returns. 

Another distinct type of hybrid MF is an arbitrage fund. Fund managers buy and sell stocks in different exchanges to benefit from a price discrepancy. 

A major benefit of the best Union hybrid mutual funds is that an investor gets access to several asset classes through a single product. Union Mutual Fund offers nearly 5 schemes under this category of MF. 

Taxability

While noting these facts regarding the best Union hybrid mutual funds, one must also consider some other parameters, like their taxation.

TDS: Tax deducted at source does not apply to the capital gains arising out of hybrid mutual funds. However, dividend yields exceeding Rs.5000 attracts 10% TDS. 

Short-term Capital Gains Tax: STCG on equity-oriented hybrid mutual fund units held for shorter than 1 year attract a 15% rate. On the other hand, STCG arising from debt-based MF units held for less than 3 years are added to an individual’s taxable earnings for a financial year.

Long-term Capital Gains Tax: LTCG arising out of equity-oriented hybrid mutual funds are taxed at a 10% rate. In contrast, LTCG on debt-based hybrid funds held for more than 3 years is taxed at a 20% rate with indexation.

Factors to Consider Before Investing

Risk factor: Investors must remember that investments in the top Union hybrid mutual funds are not devoid of risk. The volatility involved in these mainly depends on the equity proportion in a portfolio. It increases with an increase in the equity component. Though the risk factor in these funds is less than that of pure equity funds, it can still be considerable for risk-averse investors. Debt-based funds are more prone to credit, interest rate, and inflationary risks. These depend on the underlying securities’ maturity terms and/or issuer. 

Returns: One must note that the best Union hybrid mutual funds 2021 do not commit guaranteed returns. The performance of underlying investments affects the NAV or Net Asset Value of the funds. Therefore, returns might fluctuate because of movements in the market or interest rates. Furthermore, they may not declare dividends during downturns in the market.

Expense ratio: It is the fee fund houses levy to account for various operating and management costs. Investors must note that a high expense ratio does not necessarily imply low returns.

Past performance of a fund: It is a highly healthy practice for investors to look into a fund’s past performance even though it does not indicate prospective returns. This is because a fund’s past performance might provide valuable insights regarding how it did under different market conditions.

Holding analysis: It refers to the assets in which a scheme invests and the proportion in which it does so. It can be a good reference point for estimating the level of risk and returns to expect from the best Union hybrid mutual funds. For instance, a fund with significant investments in low-rated bonds pose greater credit risk but hold the potential to generate sizable returns. A scheme that predominantly invests in large-cap stocks, on the other hand, will offer more stable returns and pose less risk of volatility. 

Investors might find it daunting to choose a suitable scheme out of the best Union hybrid mutual funds. However, using this article as a guide and acquiring basic knowledge about hybrid mutual funds would help to ease the task.

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Top 10 Union Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Union Small Cap FundEquityVery High66.2%3₹555
Union Largecap FundEquityVery High36.4%3₹218
Union Long Term Equity FundEquityVery High43.2%3₹449
Union Balanced Advantage FundHybridModerate13.7%4₹1,552
Union Dynamic Bond FundDebtModerate3.0%2₹120
Union Flexi Cap FundEquityVery High44.6%4₹816
Union Liquid FundDebtLow to Moderate3.3%4₹1,181
Union Equity Savings FundHybridModerate11.4%4₹177
Union Midcap FundEquityVery High58.9%₹338
Union Large & Midcap FundEquityModerately High45.2%₹274
Union Overnight FundDebtLow3.2%2₹174
Union Arbitrage FundHybridLow4.2%₹96
Union Focused FundEquityModerately High41.1%3₹273
Union Corporate Bond FundDebtModerate3.4%2₹434
Union Asset Allocation FundHybridModerately High6.1%3₹45
View All Top 10 Union Mutual Funds

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Union Small Cap Fund Direct Growth

Fund Performance: The Union Small Cap Fund has given 29.03% annualized returns in the past three years and 19.24% in the last 5 years. The Union Small Cap Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Small Cap Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹555Cr
1Y Returns66.2%

Union Largecap Fund Direct Growth

Fund Performance: The Union Largecap Fund has given 18.18% annualized returns in the past three years and null% in the last 5 years. The Union Largecap Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Largecap Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹218Cr
1Y Returns36.4%

Union Long Term Equity Fund Direct Growth

Fund Performance: The Union Long Term Equity Fund has given 21.83% annualized returns in the past three years and 16.76% in the last 5 years. The Union Long Term Equity Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Long Term Equity Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹449Cr
1Y Returns43.2%

Union Balanced Advantage Fund Direct Growth

Fund Performance: The Union Balanced Advantage Fund has given 14.43% annualized returns in the past three years and null% in the last 5 years. The Union Balanced Advantage Fund belongs to the Hybrid category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Balanced Advantage Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹1,552Cr
1Y Returns13.7%

Union Dynamic Bond Fund Direct Growth

Fund Performance: The Union Dynamic Bond Fund has given 8.38% annualized returns in the past three years and 5.53% in the last 5 years. The Union Dynamic Bond Fund belongs to the Debt category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Dynamic Bond Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹120Cr
1Y Returns3.0%

Union Flexi Cap Fund Direct Growth

Fund Performance: The Union Flexi Cap Fund has given 22.68% annualized returns in the past three years and 18% in the last 5 years. The Union Flexi Cap Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Flexi Cap Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹816Cr
1Y Returns44.6%

Union Liquid Fund Direct Growth

Fund Performance: The Union Liquid Fund has given 4.85% annualized returns in the past three years and 4.96% in the last 5 years. The Union Liquid Fund belongs to the Debt category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Liquid Fund via lump sum is ₹5,000 and via SIP is ₹2,000.

Min Investment Amt₹5,000
AUM₹1,181Cr
1Y Returns3.3%

Union Equity Savings Fund Direct Growth

Fund Performance: The Union Equity Savings Fund belongs to the Hybrid category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Equity Savings Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹177Cr
1Y Returns11.4%

Union Midcap Fund Direct Growth

Fund Performance: The Union Midcap Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Midcap Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹338Cr
1Y Returns58.9%

Union Large & Midcap Fund Direct Growth

Fund Performance: The Union Large & Midcap Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Large & Midcap Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹274Cr
1Y Returns45.2%

Union Overnight Fund Direct Growth

Fund Performance: The Union Overnight Fund belongs to the Debt category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Overnight Fund via lump sum is ₹5,000 and via SIP is ₹2,000.

Min Investment Amt₹5,000
AUM₹174Cr
1Y Returns3.2%

Union Arbitrage Fund Direct Growth

Fund Performance: The Union Arbitrage Fund belongs to the Hybrid category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Arbitrage Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹96Cr
1Y Returns4.2%

Union Focused Fund Direct Growth

Fund Performance: The Union Focused Fund belongs to the Equity category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Focused Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹273Cr
1Y Returns41.1%

Union Corporate Bond Fund Direct Growth

Fund Performance: The Union Corporate Bond Fund has given 6.53% annualized returns in the past three years and null% in the last 5 years. The Union Corporate Bond Fund belongs to the Debt category of Union Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Union Corporate Bond Fund via lump sum is ₹1,000 and via SIP is ₹2,000.

Min Investment Amt₹1,000
AUM₹434Cr
1Y Returns3.4%

Union Asset Allocation Fund Direct Growth

Fund Performance: The Union Asset Allocation Fund has given 8.03% annualized returns in the past three years and 7.66% in the last 5 years. The Union Asset Allocation Fund belongs to the Hybrid category of Union Mutual Funds.

Minimum Investment Amount:

Min Investment Amt₹5,000
AUM₹45Cr
1Y Returns6.1%

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