The fund house plans to collect Rs. 600 crore in equity assets by the end of this fiscal
Mumbai: The latest entrant in the hyper competitive mutual fund industry, Union KBC MF targets to launch six funds and plans to build Rs 600 crore in equity assets by the end of this fiscal. The fund house has also filed offer document to launch a liquid fund. A joint venture between Union Bank and KBC Asset Management (MF arm of Belgium based KBC Group) got SEBI approval to start mutual fund operations in India in March this year. Union Bank and KBC Asset Management hold 51 per cent and 49 per cent stake respectively.
NFO Date: May 20, 2011 to June 3, 2011
Investment Objective: To achieve long-term capital appreciation by investing substantially in a portfolio consisting of equity and equity related securities.
Distribution Strategy: The fund will initially be marketed through its 800 bank branches. “Our idea is to market the fund on a continuous basis and scale it up. We are building up our distribution system. A wider distribution strategy will be in place gradually. As we build up the team, we will empanel more distributors,” says G. Pradeepkumar, CEO, Union KBC MF.
Asset Allocation: The scheme would allocate 75-100 per cent of assets in equity and equity related instruments including equity linked derivatives with medium to high risk profile. It would further invest 25 per cent of assets in debt and money market instruments with low to medium risk profile.
Target Investors: Retail, HNIs and institutions
Application Amount: Rs. 5,000
Fund Manager: Ashish Ranawade, Chief Investment Officer
Benchmark Index: BSE 100
Expenses/Exit Load: The scheme will charge 1 per cent exit load if redeemed within a one year.
RTA: CAMS
Custodian: Citibank
