As an investor, you must have thought about including mutual funds in your portfolio. They provide an excellent chance to diversify your investment portfolio across several investment vehicles such as equities, debt, and gold, resulting in a portfolio that may help you accomplish your financial objectives. Mutual funds are further subdivided into various categories depending on characteristics such as risk profile, market capitalization, asset allocation, fund size, and so on. In this article, we have given insights into one such medium duration fund.
Union Medium Duration Fund - Direct Plan-Growth
This medium duration debt fund was launched on 14th September 20220 by the Union Mutual Fund. It is an open-ended small fund of its category. The fund's AUM is stood at Rs 215.71 Crore. The NAV of this fund declared on 21st April 2022 is Rs 10.6247. It has an expense ratio of 0.68%. Its expense ratio is slightly higher than its category average.
The is rated moderate risky for investment. For investment in this fund, the minimum investment amount required is Rs 5000. For SIP, it is Rs 2000. I have no lock-in period. However, there is 1% exit load on redemption within 15 days. Its benchmark is CRISIL Medium Duration Fund BIII Index.
Absolute And Annualised Returns
Lump-Sum investment Returns
Since its launch, it has delivered 3.86% average annual returns.
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Portfolio And Holdings
The fund has 94.9% investment in Debt of which 50.6% in Government securities, and 44.3% in funds invested in very low-risk securities. The fund's credit profile is very high indicating it has lent to borrowers whose quality is excellent. Most funds in this category lend to similar borrowers and hence the risk of default in this fund is the same as in the category. The fund's top holdings are in the Government of India, Housing Development Finance Corpn. Ltd., NHPC Ltd., Power Finance Corpn. Ltd., Muthoot Finance Ltd.
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.