Union Asset Management Company Private Limited (Union AMC), Investment Manager to Union Mutual Fund announces the launch of Union Business Cycle Fund, an open-ended equity scheme following business cycles-based investing theme. The NFO of the Scheme opens on February 13, 2024 and closes on February 27, 2024.
The Scheme will be managed by two co-fund managers – Sanjay Bembalkar and sHardick Bora, who are Co-Heads of Equity at Union AMC.
The Scheme aims to take active aggressive allocation between leading sectors (sectors outperforming the broader market) and lagging sectors (sectors underperforming the broader market) based on the stage of the business cycle in the economy.
Market cycles are often the result of many intermingling cycles like the macroeconomic cycle, sectoral cycle, corporate cycle, liquidity cycle and market sentiment cycle. This cyclicality, albeit with varying degrees of frequency and amplitude, causes outperformance or underperformance in sectors leading to investment opportunities.
Harshad Patwardhan, Chief Investment Officer, Union AMC, said, "As professional money managers looking to generate consistent performance, it is crucial to embrace the cyclical nature of markets and treat the long term as a series of shorter terms. Adjusting portfolio positioning in accordance with ‘where we are in the cycle’ helps reduce opportunity costs and optimize returns.”
The minimum investment in the Scheme is Rs 1,000 and in multiples of Re 1 thereafter, and the exit load is 1% if units are redeemed/switched out on or before completion of 1 year from the date of allotment and nil if redeemed or switched out after completion of 1 year from the date of allotment of units. The Scheme offers Direct Plan and Regular Plan across a common portfolio, and under each of the Plans, the Scheme offers Growth Option and Income Distribution Cum Capital Withdrawal (IDCW) Option.
