Looking To Buy New Mutual Fund With Just Rs 1,000? Check Out This New Fund Offer By Union AMC!

If you're looking to tap the mutual fund market with investments that are affordable to as cheap as Rs 1,000? Then you might want to check out Union Asset Management Company Private Limited (Union AMC) which launched Union Business Cycle Fund, an open-ended equity share. The NFO of the scheme opened on February 13 and will close on February 27, 2024.

Union Business Cycle Fund is an open-ended equity scheme the following business cycles-based investing theme. The Scheme will be managed by two co-fund managers - Sanjay Bembalkar and Hardick Bora, who are Co-Heads of Equity at Union AMC.

Harshad Patwardhan, Chief Investment Officer, Union AMC, said, "As professional money managers looking to generate consistent performance, it is crucial to embrace the cyclical nature of markets and treat the long term as a series of shorter terms. Adjusting portfolio positioning in accordance with 'where we are in the cycle' helps reduce opportunity costs and optimize returns."

Under the scheme, the minimum investment in the Scheme is Rs 1,000 and in multiples of Re. 1 thereafter, and the exit load is 1% if units are redeemed/switched out on or before completion of 1 year from the date of allotment and nil if redeemed or switched out after completion of 1 year from the date of allotment of units.

Union Business Cycle Fund aims to take active aggressive allocation between leading sectors (sectors outperforming the broader market) and lagging sectors (sectors underperforming the broader market) based on the stage of the business cycle in the economy.

Further, the scheme offers Direct Plan and Regular Plan across a common portfolio, and under each of the Plans, the Scheme offers Growth Option and Income Distribution Cum Capital Withdrawal (IDCW) Option.

According to Union AMC, market cycles are often the result of many intermingling cycles like the macroeconomic cycle, sectoral cycle, corporate cycle, liquidity cycle and market sentiment cycle. This cyclicality, albeit with varying degrees of frequency and amplitude, causes outperformance or underperformance in sectors leading to investment opportunities.

Disclaimer: The write-up highlights about the said mutual fund scheme and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.