Union Mutual Fund to launch Union Active Momentum Fund

Union Active Momentum Fund Direct is an open-ended thematic equity fund introduced by Union Mutual Fund, aimed at achieving long-term capital growth through investments in stocks that demonstrate significant momentum. The fund utilizes a unique momentum model to pinpoint and invest in stocks that display exceptional price trends. With a team of seasoned fund managers at the helm, this scheme provides options for growth and IDCW plans, requiring a minimum investment of Rs. 1,000. The fund benchmarks itself against the NIFTY 500 TRI and actively modifies its portfolio to take advantage of market trends while also holding a high-risk rating.

Union Mutual Fund is preparing to launch the Union Active Momentum Fund

Union Mutual Fund is preparing to introduce the Union Active Momentum Fund, an exciting new addition to the equity category. This thematic mutual fund is designed to leverage momentum investing, which involves purchasing stocks that have experienced recent price increases while selling those that have shown declines. This blog explores every facet of the fund, including launch information, anticipated advantages, and potential risks, providing investors with the insights necessary to make well-informed decisions.

All about NFO

Union Mutual Fund has announced the introduction of the Union Active Momentum Fund—Direct (G), an equity thematic scheme focused on a momentum investing strategy. The New Fund Offer (NFO) will be available from November 28, 2024, to December 12, 2024. Investors can start with a minimum investment of Rs. 1,000, and further investments can be made in increments of Rs. 1. 

There is no entry load for this fund; however, an exit load of 1% will apply for redemptions or switches made within one year from the date of allotment, with the fee being waived after that period. Managed by Mr. Gaurav Chopra and Mr. Hardick Bora, the fund aims for long-term capital appreciation by investing in stocks that demonstrate strong price momentum, using the Nifty 500 Index (TRI) as its benchmark.

Conclusion

The Union Active Momentum Fund is a novel offering intended to meet the needs of dynamic investors. The fund’s momentum-based strategy has the potential to generate significant returns in trending markets. However, as with any investment, it entails risks, so investors must align their goals and risk profiles before investing.

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.