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Securing your child’s future: Union mutual fund launches children’s fund

28 November 20236 mins read by Angel One
Here’s a comprehensive overview of the Union Children’s Fund, its allocation, investment instruments, fund managers' information and funds comparison.
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Union Mutual Fund launched the NFO of Children’s Fund on November 28, 2023, which is a solution-oriented scheme. Union Children’s Fund is an open-ended solution-oriented scheme that invests in a mix of equity, equity-related securities, and debt instruments to generate long-term capital appreciation. The fund has a minimum subscription amount of Rs. 1,000 and no entry or exit loads.

Union Children’s Fund is an open-ended fund for investment for children, having a lock-in for at least 5 years or till the child attains the age of majority (whichever is earlier). The investment objective of the Scheme is to generate long-term capital appreciation by investing in a mix of securities comprising equity, equity-related securities and debt instruments as per the asset allocation pattern of the Scheme with a view to providing investment solutions to investors.

Asset Allocation

The asset allocation for equity is a minimum of 65% and a maximum of 100%, where the scheme is investing in debt and money market instruments, with a maximum of 35% having a low risk profile. The scheme also invests in REITs and InVITs with a maximum of 10% allocation. The scheme uses derivatives to hedge the asset up to 50% and 20% for other than hedging operations. The investments in securities lending will be up to 20% of the net assets of the schemes.

Union Mutual Fund – Funds Comparison Snapshot

Funds 1 Year Returns (%) Risk-o-meter Category Expense Ratio (%) Net Assets (Cr)
Union Arbitrage Fund – Direct Plan 7.79 Low HY-AR 0.42 103.00
Union Balanced Advantage Fund – Direct Plan 9.80 High HY-DAA 0.91 1,563
Union Children’s Fund – Direct Plan Very High HY-AH
Union Corporate Bond Fund – Direct Plan 6.32 Moderate DT-CB 0.39 462.00
Union Dynamic Bond Fund – Direct Plan 5.79 Moderate DT-DB 1.26 88.00
Union Equity Savings Fund – Direct Plan 8.13 Moderate HY-EQ S 1.48 119.00
Union Fixed Maturity Plan – Series 13 (1114 Days) – Direct Plan Low to Moderate DT-FMP 0.19 23.00
Union Flexi Cap Fund – Direct Plan 18.18 Very High EQ-FLX 0.91 1,621
Union Focused Fund – Direct Plan 12.68 Very High EQ-FLX 1.49 344.00
Union Gilt Fund – Direct Plan 6.13 Moderate DT-GL 0.52 117.00
Union Hybrid Equity Fund – Direct Plan 12.97 Very High HY-AH 1.32 534.00
Union Innovation & Opportunities Fund – Direct Plan Very High EQ-THEMATIC 0.89 502.00
Union Largecap Fund – Direct Plan 11.24 Very High EQ-LC 1.72 248.00
Union Large & Midcap Fund – Direct Plan 18.24 Very High EQ-L&MC 1.03 539.00
Union Liquid Fund – Direct Plan 7.11 Low to Moderate DT-LIQ 0.08 2,862
Union Medium Duration Fund – Direct Plan 6.23 Moderate DT-MD 0.67 126.00
Union Midcap Fund – Direct Plan 24.86 Very High EQ-MC 0.74 838.00
Union Money Market Fund – Direct Plan 7.05 Low to Moderate DT-MM 0.29 173.00
Union Multicap Fund – Direct Plan Very High EQ-MLC 0.96 618.00
Union Overnight Fund – Direct Plan 6.62 Low DT-OVERNHT 0.08 380.00
Union Retirement Fund – Direct Plan 20.78 Very High HY-AH 0.59 91.00
Union Small Cap Fund – Direct Plan 36.45 Very High EQ-SC 1.01 1,139
Union Tax Saver (ELSS) Fund – Direct Plan 16.72 Very High EQ-ELSS 1.42 695.00
Union Value Discovery Fund – Direct Plan 22.63 Very High EQ-VAL 1.51 172.00

Above data is recorded as of November 28, 2023.

Where the scheme is investing?

The Union Children’s Fund is about to invest in equity and its related instruments like derivatives, warrants, debentures, IPOs, preference shares, and private placements. In the debt instruments, the scheme invests in Certificate of Deposit (CD), Tri-party Repo (TREPS) in Government Securities, Commercial Paper (CP), Reverse Repo, Treasury Bill (T-Bill), Securities created and issued by the Central and State Governments, Non-convertible debentures and bonds, and floating rate debt instruments. With these debt instruments, the scheme uses debt derivatives instruments to trade in interest rate swaps, forward rate agreements, interest rate futures, etc. Along with all these other mutual funds, short-term loans and units of REITs and InVITs are also some of the instruments that the scheme is investing in.

Fund managers

Hardick Bora (Co-Head Equity) – 35 years
Industry experience: Over 15 years of experience in the financial services sector.

Sanjay Bembalkar (Co-Head Equity) – 40 years
Industry experience: Over 16 years of experience in the field of Equity Research and Fund Management.

Parijat Agrawal (Head – Fixed Income) – 56 years
Industry Experience: Over 27 years of experience in Funds Management.

Top Performing Children’s Mutual Funds (Trailing returns)

Category – Children’s Fund

Scheme Name AUM (Crore) Expense Ratio (%) 1 Week Returns (%) 1 Month Returns (%) 3 Months Returns (%) 6 Months Returns (%) 1 Year Returns (%) 3 Years Returns (%) Since Launch Ret (%)
SBI Magnum Childrens Benefit Inv Reg Gr 1271.429 2.17 0.39 2.4 3.36 17.28 21.68 37.89 40.5
HDFC Children Gift Fund Investment 7330.722 1.79 0.15 3.52 2.46 10.56 16.7 18.7 16.19
ICICI Pru Child Care Gift Cum 980.7471 2.29 1.32 5.78 5.23 16.24 17.49 17.2 15.33
Tata Young Citizen Reg Gr 291.9173 2.6 -0.08 4.02 3.61 14.39 16.1 19.11 12.84
SBI Magnum Childrens Benefit Savings Reg Gr 100.7471 1.2 0.17 2.04 3.23 8.89 13.9 13.55 10.53
UTI CCF Investment Reg Gr 831.5821 2.33 0.64 4.35 4.88 14.44 12.2 16.17 10.14
ABSL Bal Bhavishya Yojna Reg Gr 799.7691 2.24 0.45 3.61 3.2 14.16 13.67 11.49 10.01
Axis Childrens Gift Fund Lock-in Gr 739.6912 2.33 -0.21 1.28 1.31 5.5 4.9 9.65 9.62
Axis Childrens Gift Fund without Lock-in Gr 739.6912 2.33 -0.21 1.28 1.31 5.5 4.9 9.65 9.62
LIC MF Childrens Gift Fund Reg Gr 13.854 2.48 0.68 3.48 4.07 13.02 12.51 11.32 4.63
Category Average 0.33 3.18 3.27 12 13.41 16.47 13.94
NIFTY 50 TRI 0.32 2.81 2.28 9.03 8.23 16.25 13.73

Above data is recorded as of November 28, 2023.

Union Mutual Fund has launched a new open-ended solution-oriented scheme named Union Children’s Fund. The scheme aims to generate long-term capital appreciation by investing in a mix of securities comprising equity, equity-related securities, and debt instruments as per the asset allocation pattern of the scheme. The minimum subscription amount is Rs.1000 and Rs.1 thereafter. The scheme is open for subscription from 28th November 2023 and will close on 12th December 2023. There is no entry load and exit load applicable.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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