Union Multi Asset Allocation Fund – NFO Opens Soon

Union Mutual Fund has launched a new open-ended hybrid scheme, the Union Multi Asset Allocation Fund NFO, which opened for subscription on August 20, 2024, and is set to close on September 3, 2024. This NFO offers investors a diversified portfolio that aims to deliver long-term capital appreciation by investing across multiple asset classes, including equities, debt instruments, gold and silver ETFs, and REITs/InvITs.

Investment Objective: A Diverse and Balanced Approach

The primary objective of the Union Multi Asset Allocation Fund is to generate long-term capital appreciation by strategically investing in a diversified portfolio. This portfolio will include equity and equity-related instruments, debt and money market instruments, units of gold and silver ETFs, as well as units of REITs and InvITs. This diverse allocation aims to balance risk and return, offering a comprehensive investment option for those seeking growth and stability. However, it’s important to note that there is no assurance or guarantee that the scheme’s investment objective will be met.

Why Consider Investing in This NFO?

The Union Multi Asset Allocation Fund is particularly suitable for investors looking for long-term wealth creation. By providing exposure to a broad range of asset classes, including equities, fixed income, and commodities like gold and silver, the fund is designed to navigate different market conditions. This diversification can help mitigate risk while offering the potential for substantial returns over the long term. The minimum investment amount is set at Rs 1,000, making it accessible to a wide range of investors.

Benchmark for Performance Evaluation

The performance of the Union Multi Asset Allocation Fund will be benchmarked against a composite index that includes 65% of the Nifty 50 TRI, 20% of the Crisil Short Term Bond Fund Index, and 15% of the domestic price of gold. This benchmark provides a balanced mix of equity, debt, and commodity exposure, reflecting the fund’s diversified investment strategy.

Fund Management Team

The Union Multi Asset Allocation Fund is managed by a team of  professionals, including Hardick Bora, Sanjay Bembalkar, and Anindya Sarkar, who oversees the fixed income component of the fund. 

Conclusion: A Balanced Fund for Long-Term Growth

The Union Multi Asset Allocation Fund offers a unique opportunity for investors to benefit from a well-diversified portfolio that includes a mix of asset classes. With a focus on long-term capital appreciation and a team of seasoned fund managers, this NFO presents a compelling choice for those looking to achieve balanced growth in their investment portfolio. The exit load of 1% for redemptions within 15 days of allotment further incentivizes long-term investment, with no charges for longer holding periods.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.