Union asset management company’s (AMC ) new fund offer (NFO) of its multi-cap fund will run from November 28 to December 12, 2022. The minimum subscription amount of the fund is Rs 1000.
In a press release, Union AMC, a joint venture of state-owned Union Bank of India and Japan’s Dai-ichi Life Holdings, Inc., said the multi-cap fund would invest in equities across the market capitalisation.
The fund will invest 25 per cent of the money in each of the large, mid, and small-cap categories; the remaining 25 per cent could be allocated to equities across capitalisation or in debt and money market instruments.
Explaining its strategy, Union AMC said the fund aims to benefit from higher growth potential offered by mid- and small-caps while striving to reduce volatility in returns with exposure to large-cap stocks.
“Union Multi-cap Fund aims to follow a mix of a top-down and bottom-up approach to identify opportunities in large, mid, and small-cap space,” it said in the release.
The scheme’s benchmark will be Nifty 500 Multicap 50:25:25 TRI, and the stock selection would be based on a fair value approach, it said.
G. Pradeepkumar, chief executive officer of Union AMC, said different market caps perform differently in different periods; hence it is not easy to gauge which segment would outperform or underperform.
The fund provides “true diversification” through a disciplined approach while ensuring it is not over-invested in a particular market cap at any time, said Pradeepkumar.
Sanjay Bembalkar, fund manager, Equity, Union AMC, said, “The stock selection approach would consider good companies through the lens of a fair value approach, while the portfolio construction would be quantamental (fundamental + quantitative).”
