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

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

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

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.