Union Mutual Fund Extends NFO Period for Short Duration Fund

Union Mutual Fund has extended the New Fund Offer (NFO) period for its Union Short Duration Fund- Direct Plan, giving investors an extra day to participate. Originally set to close on January 28, 2025, the NFO will now conclude on January 29, 2025.

Investment Objective and Strategy

The Union Short Duration Fund is an actively managed scheme that aims to offer reasonable returns with liquidity by investing in a mix of debt and money market instruments. The fund follows a balanced approach, prioritizing safety, liquidity, and returns to create an optimal portfolio.

Fund Details and Structure

• Fund House: Union Mutual Fund
• Fund Manager: Shrenuj Parekh (since January 15, 2025)
• Category: Debt – Short Duration
• Type: Open-ended
• Benchmark: CRISIL Short Duration Debt A-II Index
• Registrar & Transfer Agent: Computer Age Management Services Ltd.

Investment Requirements and Exit Load

Investors can start with a minimum investment of ₹1,000, with options available under Growth and IDCW plans. The fund has no lock-in period, providing flexibility for investors. However, an exit load of 1% will be applicable if the investment is redeemed within 15 days from the date of allotment.

Risk and Suitability

The Riskometer for the Union Short Duration Fund places it in the moderate risk category, making it suitable for investors seeking stable returns with relatively lower volatility than equity-based schemes. As a short-duration debt fund, it is to help investors navigate interest rate fluctuations while maintaining liquidity.

Final Thoughts

With the NFO extension, investors now have until today, January 29, 2025, to explore this opportunity..

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.