Union Mutual Fund files a draft document with Sebi for a multi-asset allocation fund

Union Mutual Fund has filed a draft document with Sebi for a multi-asset allocation fund. Union Multi Asset Allocation Fund will be an open-ended scheme, investing in equity, debt, gold and/or silver.

The investment objective of the scheme will be to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments, debt and money market instruments, units of Gold Exchange Traded Funds (ETFs) and/or Silver ETFs and units of REITs & InvITs as per the asset allocation pattern of the scheme.

The scheme will be benchmarked against 65% Nifty 50 TRI + 20% CRISIL Short Term Bond Fund Index + 15% Domestic price of Gold. Hardick Bora, Sanjay Bembalkar, and Anindya Sarkar are fund managers to the scheme.

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The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum application amount for daily SIP will be Rs 100 and in multiples of Re 1 thereafter. The minimum application amount for the weekly, fortnightly, and monthly SIP frequency will be Rs 500 and in multiples of Re 1 thereafter.

The minimum additional application amount will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum redemption amount will be Rs 1,000 or the balance in the account of the unitholder, whichever is lower.

An exit load of 1% will be applicable if units are redeemed/switched out on or before completion of 15 days from the date of allotment. Nil exit load will be there if redeemed or switched out after completion of 15 days from the date of allotment of units.

The scheme will invest 65-80% in equity and equity-related instruments, 10-25% in debt and money market instruments including units of debt-oriented mutual fund schemes, 10-25% in units of gold ETFs, 0-10% in units of silver ETF, and 0-10% in units issued by REITs and InvITs.

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The investment team shall follow a combination of the bottom-up and top-down approach while making investments. The top-down approach shall involve analysis of the macro-economic factors, industry evaluation, benchmark industry allocation, market outlook etc. and shall be used to determine the asset allocation. The investment team shall scan the market for opportunities and shall evaluate the individual companies on their merits, leading to the bottom-up investment decision.

The scheme will be suitable for investors seeking long-term wealth creation and want investment in a diversified portfolio of equity and equity-related instruments, debt and money market instruments and units of gold ETFs and/or silver ETFs.

The principal invested in the scheme and its benchmark will be at “very high” risk according to the riskometer of the scheme.

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