Union Mutual Fund Files Draft for Diversified Equity All Cap Active FoF

Union Mutual Fund has filed draft papers with SEBI for a new scheme called Union Diversified Equity All Cap Active Fund of Fund (FoF). This is an open-ended fund that plans to invest in equity-oriented mutual fund schemes across different market capitalisations.

Investment Allocation

The scheme will allocate 90% to 100% of its assets in equity funds and up to 10% in debt and money market instruments. Additionally, a maximum of 5% may be held in cash or equivalents. No investment will be made in foreign securities, equity derivatives, or REITs/InvITs.

Scheme Benchmark and Structure

The BSE 500 Total Return Index (TRI) has been selected as the benchmark. This index includes the top 500 companies by market capitalisation. The fund is designed as a fund of funds, meaning it will invest in other mutual fund schemes rather than directly in stocks or bonds.

Fund Managers

The scheme will be managed by Mr. Gaurav Chopra and Mr. Pratik Dharmshi. Both fund managers have over a decade of experience in equity markets and currently manage multiple other equity and hybrid schemes within the fund house.

Liquidity and NAV

Units of the scheme will be available for purchase and redemption on all business days. The first NAV will be published within 5 business days of allotment. There is no plan to list the scheme on any stock exchange.

The minimum investment amount during the NFO is ₹1,000, with SIPs starting at ₹100. An exit load of 1% applies if units are redeemed within one year; redemptions after one year are free of charge.

The scheme will have a maximum Total Expense Ratio (TER) of 2.25%. It falls under the “very high risk” category on the riskometer. Investors will bear costs related to both the fund and its underlying schemes.

Read More: Monarch Networth Capital Receives SEBI Approval for Mutual Fund Launch!

Conclusion

The scheme is currently awaiting regulatory approvals. Further details regarding the NFO dates and distribution channels will be provided by Union Mutual Fund in due course.

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 the related documents carefully before investing.