Union AMC launches Multicap Fund: Check NFO details
An open-ended equity fund Union Multicap Fund with the goal of generating wealth accumulation through investments in equities and equity-related securities throughout the market capitalisation has been launched by Union AMC. The scheme seeks to gain from the higher growth potential provided by mid and small caps as well as the lower volatility provided by large caps. The NFO begins on November 28, 2022, and ends on December 12, 2022, the scheme allotment date has been set as 19 December 2022 while the scheme re-opens on 26 December 2022. The required minimum investment is Rs. 1,000, with subsequent investments in multiples of Rs. 1 as well. A minimum of 25% would be allocated to each of the three categories of stocks that make up the Union Multicap Fund’s allocation to equities across capitalization (Large cap, Mid cap, and Small-cap), while the remaining 25% might be invested in debt and money market instruments.
Union AMC said while announcing that “Union Multicap 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 # . The stock selection will be based on “Fair Value” approach.”
Speaking on the launch of Union Multicap Fund, Mr. G. Pradeepkumar, Chief Executive Officer (CEO), Union AMC said, “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 endeavours 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.”
Mr. Sanjay Bembalkar, Fund Manager, Equity, Union 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 fair value approach while the portfolio construction approach would be quantamental (fundamental + quantitative) in nature.”
The fund’s co-manager are Mr. Vinay Paharia, Chief Investment Officer and Mr. Sanjay Bembalkar, Fund Manager – Equity. The scheme comes with an exit load of 1% if units are redeemed/switched out on or before the completion of 15 days from the date of allotment.
Union Asset Management Company (AMC), is a subsidiary of Union Bank of India. The fund house recorded a number of live folios as on September 30, 2022 of 4,61,561 whereas the fund posted AAUM as on September 2022 of ₹9793 crore.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.