Union Mutual Fund has launched a Diversified Equity All Cap Active Fund of Fund (FoF) that will dynamically allocate funds across varied market capitalisation through a single fund.
The fund house will invest 60 per cent of the investment in its multi-cap fund which will be the anchor fund while allocating the remaining 40 per cent of portfolio dynamically between large, mid and small-caps.
For many new investors, choosing the right entry point and an appropriately diversified fund remains a key challenge. Union Mutual Fund aims to address this with a one-of-a-kind solution that dynamically allocates across schemes investing in large, mid, and small-cap of Union MF equity schemes – removing the complexity of timing, selection and allocation, said the fund house.
Allocation drivers
The fund allocation between different market caps will depend on growth prospects, investors flows and valuations.
Madhu Nair, CEO, Union Asset Management Company said with the MF penetration growing steadily the new FoF launched will offer a simple, all-weather equity products that may help investor’s decision-making easier.
The decision on market timing and allocation to each cap segment will be taken by expert fund managers, while the FoF also provides the convenience of switching funds without tax implications, he added.
Investors will also get the expertise of three fund managers in handling on scheme.
The NFO for the Union Diversified Equity All Cap Active FoF closes on September 15.