NFO Alert: Union Mutual Fund launches Union Business Cycle Fund; all you need to know

livemint.com:

Mutual Fund announced the launch of the Union Business Cycle Fund. The scheme opened for public subscription on February 13, 2024, and will close on February 27, 2024.

The scheme re-opens for continuous sale and repurchase within five business days of the date of allotment. This is an open-ended equity scheme following the business cycles-based investing theme.

This product is suitable for investors seeking The investment objective of the scheme is to generate long-term capital appreciation by investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles in the economy. However, there is no assurance that the investment objective of the scheme will be achieved.

Harshad Patwardhan, Chief Investment Officer, Union AMC, said, "As professional money managers looking to generate consistent performance, it is crucial to embrace the cyclical nature of markets and treat the long term as a series of shorter terms. Adjusting portfolio positioning by ‘where we are in the cycle’ helps reduce opportunity costs and optimize returns." Investors can invest under the scheme with a minimum investment of  ₹1000 per plan/option and in multiples of Re 1.

There is no upper limit for investment. Under normal circumstances, the asset allocation of the scheme will be as follows:MinimumMaximumEquity and Equity related instruments of companies selected based on the business cycle theme80100Very HighEquity and Equity related instruments of companies other than the above companies020Very HighDebt and Money Market Instruments including units of debt-oriented mutual fund schemes020Low to MediumUnits issued by REITs & InvITs010Very High To date, many asset management companies