Union Mutual Fund announced the launch of the Union Innovation & Opportunities Fund, an open-ended equity scheme following a sectoral or thematic theme.
The scheme opened for public subscription on August 16, 2023, and will close on August 30, 2023. The scheme re-opens for continuous sale and repurchase on September 13, 2023.
What kind of mutual fund scheme is this?
This is an open-ended equity scheme following the innovation theme.
What is the main objective of investing in this fund?
The investment objective of the scheme is to achieve long-term capital appreciation by investing predominantly in equity and equity-related securities of innovative companies.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹1000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Equity and equity-related instruments of innovative companies | 80% | 100% | Very High |
Equity and equity-related instruments of other than the above companies | 0% | 20% | Very High |
Debt and money market instruments | 0% | 20% | Low to Medium |
Units of REITs and InvITs | 0% | 10% | Very High |
Are there similar mutual funds in the market?
To date, two asset management companies (AMCs) have launched such funds in the past. The following table illustrates the name of the mutual fund houses along with their respective innovation funds.
Name of the mutual fund house | Name of the fund |
ICICI Prudential Mutual Fund | ICICI Prudential Innovation Fund |
Nippon India Mutual Fund | Nippon India Innovation Fund |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty 500 Index TRI. The performance of the scheme will be benchmarked to the Total Return variant of the Index (TRI).
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:
- If redeemed or switched out after completion of 1 year from the date of allotment of units – Nil.
- If units are redeemed/switched out on or before completion of 1 year from the date of allotment – 1%.
Who will manage this scheme?
Hardick Bora and Sanjay Bembalkar are the designated fund managers of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
