The launch of the Union Hybrid Equity fund has been announced by the Union AMC, which will be an open-ended scheme mainly focusing on equity and equity-related instruments. The baseline investment required will be Rs 5000 and in multiples of Re 1 after that. Under this scheme, there will be a minimum of 65% investment inequity and a maximum of 35% investment in debt instruments. The goal of this scheme is to generate most of the income via portfolios of equity-related securities by investing in debt and money markets. The managers of this scheme will be Vinay Paharia, Parijat Agrawal, and Hardik Bora.
November 27th marks the opening of the NFO (New Fund Offer) of this scheme which is set to close for subscriptions on December 11th, 2020. This scheme is also highly regarded and compared with the CRISIL Hybrid 35+65 Aggressive Index (TRI).
The Union Hybrid Scheme, similar to other mutual fund schemes, will extend many options for investors such as the option for growth and dividend options. These types of hybrid schemes are very well suited to those people who want exposure to both equity and debt assets but also want to enjoy the tax benefits extended by such equity schemes.
The CEO of the Union Asset Management Company Private Limited, G. Pradeepkumar said that the foundation of a successful investment outcome is prudent asset allocation. Generally speaking, different asset classes do not move together, therefore, the exposure to this Union Hybrid Equity Fund inherently offers the best amalgam of debt and equity and can be a good choice for investors looking for a balanced approach to asset allocation”.
He also adds that the scheme will try to maintain a sensible ratio of equity and debt within the limit allowed for this category and that all the decisions regarding investments in the portfolio of this scheme will be guided by their strong investment processes.