The NFO of the scheme is open for subscription from February 18 and closes on March 4.
Union KBC Mutual Fund is going to launch series 2 of its close end equity scheme - Union KBC Trigger Fund Series. The NFO opens for subscription on February 18 and closes on March 4.
The first series of this scheme was launched in November 2013 with an aim to liquidate the scheme within three years or when the NAV of the direct plan would cross 13, whichever is earlier. On July 07, the scheme’s direct plan NAV hit 13.03 while the regular plan’s NAV reached 12.97.
The series 2 is also modelled on the lines of Series 1. If the fund doesn’t reach its pre-defined target, the scheme will mature after 3 years from the date of allotment at its prevailing NAV. Also, there would be a marginal difference in returns since the scheme redeems in 10th business day after hitting its trigger owing to some procedural constraints in the winding up of fund.
Benchmarked against S&P BSE 200 Index, Union KBC Trigger Fund – Series 2 will invest in a portfolio of equity and equity related securities. The scheme will also invest a small portion in debt and money market instruments for tactical reasons. There is no exit load.
In a press release, G Pradeepkumar, Chief Executive Officer, Union KBC MF said “We have demonstrated the success of the concept of a Trigger Fund with Union KBC Trigger Fund - Series 1. Like its predecessor, Union KBC Trigger Fund – Series 2 too makes a genuine attempt to allow investors to actually enjoy the benefits of market appreciation, if the predefined trigger level is achieved.”
The scheme will follow an active management strategy and a bottom up approach for stock selection. Ashish Ranawade is the fund manager of the scheme.
The AUM of Union KBC MF was Rs. 2,873 crore as on December 2014.