Union Mutual Fund Announces Merger of Medium Duration Fund With Corporate Bond Fund

Union Mutual Fund is set to consolidate its offerings by merging the Union Medium Duration Fund into the Union Corporate Bond Fund. This strategic move aims to streamline the fund house’s debt portfolio and provide investors with a more focused investment avenue. The merger is scheduled to take effect on January 29, 2025.

Union Medium Duration Fund

Launched on December 30, 2009, the Union Medium Duration Fund seeks to generate income and capital appreciation by investing in fixed-income securities and money market instruments. As of September 30, 2024, the fund’s assets under management (AUM) stood at ₹81.50 crore, with an expense ratio of 0.87% for the regular plan as of November 27, 2024. The fund’s average maturity is 4.98 years, and it carries a moderate risk profile. 

Union Corporate Bond Fund

The Union Corporate Bond Fund, launched on May 25, 2018, aims to achieve long-term capital appreciation by investing substantially in a portfolio of corporate debt securities. As of September 30, 2024, the fund manages an AUM of ₹259.62 crore, with an expense ratio of 0.69% for the regular plan as of November 30, 2024. The fund’s average maturity is 4.83 years, and it is categorised under moderate risk.

Options for Unit Holders

Unit holders of the Union Medium Duration Fund who do not consent to the merger have the option to redeem their units or switch to other schemes offered by Union Mutual Fund without incurring any exit load. This exit window is available from December 30, 2024, to January 28, 2025. Investors are advised to consult with their financial advisors to understand the implications of the merger on their investment portfolios and to make informed decisions accordingly.

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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.