Union Mutual Fund has launched Union Value Discovery Fund, an open ended equity scheme following a value investment strategy.
This is the fifth open-ended equity scheme of the fund house. The first open-ended equity scheme, Union Multi Cap Fund (formerly known as Union Equity Fund) was launched in June 2011.
In a press release, the company said, “Currently, Indian equity markets are facing headwinds in the form of volatile crude oil prices, trade war, rising cost of capital, weakening rupee and tightening liquidity. All of these factors appeared to have led to a meaningful correction in the major equity indices. Between December 29, 2017 and October 31, 2018, Nifty 50 has fallen by 1.37%, Nifty Mid Cap 100 by 18.66% and Nifty Small Cap 100 by 33.33%. Further, of the 472 stocks that were part of S&P BSE 500 index on January 31, 2018 and also on October 31, 2018, 81% have witnessed fall in prices, in some cases by more than 72%. This potentially is a good opportunity for making long term investments in equities of some of these companies.”
Union Value Discovery Fund would predominantly invest in stocks that are categorized as bargain stocks and are temporarily out of favour. The multi cap portfolio would follow bottom up selection to pick up stocks.
“Given the market condition, we believe this is a good choice for investors looking for value for their money. There are a number of stocks available that are close to their intrinsic value. We are confident that we can create a portfolio of stocks that could benefit investors with long term investment horizon.” said G. Pradeepkumar, CEO, Union AMC.