Union AMC launches multi-cap fund; NFO to open on 28 November

NEW DELHI: Union Asset Management Company (AMC) on Thursday announced the launch of Union Multicap Fund, an open-ended equity scheme which aims to provide capital appreciation by investing in equity and equity related securities across market capitalization in a disciplined manner.

The New Fund Offer (NFO) will open on 28 November and close on 12 December. The minimum investment required is ₹1,000 and in multiples of ₹1 thereafter.

The fund aims to follow a mix of top-down and bottom-up approach to identify opportunities in large, mid and small cap space. The scheme will be benchmarked against NIFTY 500 Multicap 50:25:25 TRI# and the stock selection will be based on “Fair Value” approach, the AMC said in its statement.

“Empirical data shows that different market caps perform differently in different periods and it is not easy to gauge which segment will outperform and which will underperform. Union Multicap Fund endeavors to enable investors navigate across market caps and provide true diversification by following a disciplined investment approach which ensures that the fund is not over invested in any particular market capitalisation at any point in time. We believe that discipline is key to achieving more specially when it comes to investments and through Union Multicap Fund, our new fund offering, we aim to deliver capital appreciation over the long run,” said G. Pradeepkumar, CEO, Union AMC.

The fund will have allocation to equities across capitalization with a minimum allocation of 25% to each category and remaining 25% could be allocated to equities across capitalisation or in debt and money market instruments etc. as mentioned in the Scheme Information Document (SID). “The scheme aims to benefit from higher growth potential offered by mid and small caps coupled with lesser volatility via large caps,” the AMC said.

“Union Multicap Fund would provide investors a disciplined way to participate in India’s growth story through presence across market capitalisation. The stock selection approach would consider our process framework of looking at good companies managed by good management through the lens of a fair value approach while the portfolio construction approach would be quantamental (fundamental + quantitative) in nature,” said Sanjay Bembalkar, Fund Manager, Equity, Union AMC.