Union KBC Trigger Fund has delivered 30% absolute return in eight months. The fund will return money to investors and wind up this month.
Thanks to the market rally and the concentrated bets taken by fund manager Ashish Ranawade, Union KBC Trigger Fund has managed to cross NAV of 13 in eight months.
The fund 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. Keeping with its objective, the fund will wind up in ten working days after returning the proceeds to investors.
“Our investors are happy with the way fund has performed. Some of them are keen to switch their investments in our open-end equity fund since the market is expected to rise further. This has put the confidence back in investors that they can make money in mutual funds. The fund outperformed its benchmark by 2.50%,” said G Pradeepkumar, Chief Executive Officer, Union KBC Mutual Fund.
The fund has a concentrated portfolio consisting of 32 stocks. The fund had a mixture of aggressive and defensive stocks in sectors like pharmaceutical, IT and construction, among others. Benchmarked against BSE 200, the fund also made tactical overweight/underweight allocations to sectors such as banks, chemicals, non-ferrous metals, power, finance and auto ancillary sectors, to name a few.
The scheme is managing Rs. 43 crore and has an investor base of 2900. Union KBC manages Rs. 3,531 crore as on June 2014.
