Union Mutual Fund today launched Union Prudence Fund, an open-ended dynamic asset allocation fund.
The NFO period of the fund will remain open for subscription from December 7 to December 15.
Speaking on the occasion, G Pradeepkumar, CEO, Union Mutual Fund said that the fund is ideal for investors who want to generate relatively steady returns in the form of growth or income over the medium to long term period. “The active asset allocation strategy that will be adopted by the scheme is expected to improve the chances of achieving this objective by lowering the volatility of returns,’’ said Pradeepkumar.
The investment objective of the scheme is to achieve long-term capital appreciation and generate income through an equity portfolio by using long equities, equity derivatives and arbitrage opportunities.
The scheme will invest at least 65% in equities and the rest in debt and money market instruments. The scheme will also cap its maximum exposure to equity derivatives at 45%.
Ashish Ranawade and Parijat Agrawal will manage the fund.
