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The scheme’s investment objective is to achieve long-term capital growth and to generate portfolio revenue primarily from equity and equity-related securities.

Co-sponsored by Union Bank of India and Japan’s Dai-ichi Life Holdings, Inc., Union AMC has announced the launch of the Union Hybrid Equity Fund, an open-ended hybrid scheme that invests primarily in equity and equity instruments. The scheme’s investment objective is to achieve long-term capital growth and generate portfolio revenue mainly from equity and equity-related securities. The scheme will invest in the instruments of the debt & money market as well.

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The scheme will invest at least 65 percent in equity and 35 percent in debt at the most. The Scheme’s New Fund Offer (NFO) opens on 27 November 2020 and will close on 11 December 2020. The allotment is scheduled for 18 December 2020 and will re-open on 28 December 2020 for continuous sale and repurchase.

The scheme is benchmarked against the Aggressive Index (TRI) for CRISIL Hybrid 35+65 and will be managed by Vinay Paharia, Parijat Agrawal, and Hardick Bora. The minimum investment required is Rs 5,000 and subsequently in Re 1 multiples.

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G. Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Private Limited, said The basis of a successful investment outcome is, among other things, prudent asset allocation.” In general, various asset groups do not move in tandem, so exposure to the Union Mixed Equity Fund, which inherently provides a mix of equity and debt, maybe a good option for investors seeking a balanced asset allocation. The goal of this scheme is to retain a judicious combination of equity and debt within the total limits permitted for that category. Our good investment process will direct all investment decisions in this scheme portfolio.

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The Union Hybrid Equity Fund, similar to other mutual fund strategies, has the following options for investors:

Growth option: This option is suitable for investors who are not seeking a dividend, but who are only investing for the purpose of capital appreciation.

Dividend option: This option is suitable for investors seeking dividend income as announced by the scheme. Under this choice, from time to time, the scheme will aim to announce dividends. The dividend relies on the availability of the surplus available for distribution. The following services are available for the dividend option.

  • Facility for Dividend Re-investment
  • Pay-out Dividend Service
  • Facility for Dividend Sweep
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There are many types of hybrid systems with different equity and debt asset allocations. Those who want to be exposed to both equity and debt assets and still benefit from the tax advantage of equity schemes are suited to hybrid equity schemes with aggressive allocation.