Union AMC announces the launch of Union Hybrid Equity Fund


Union AMC declared the launch of Union Hybrid Equity Fund, an open-ended hybrid scheme investing predominantly in equity and equity-related instruments. The investment aim of the scheme is to acquire long-term capital boom and generate earnings from a portfolio, predominantly of equity and equity associated securities. The scheme would require an investment of a minimum of 65% in equity and a maximum of 35% in debt instruments. The minimum investment required is Rs 5,000 and in multiples of Re 1 afterward.

The New Fund Offer (NFO) of the scheme starts on 27 November 2020, and the subscription will end on 11 December 2020. The allotment would take place on December 18 and it will re-open for continuous sale and repurchase on 28 December 2020. This scheme is benchmarked against CRISIL Hybrid 35+65 Aggressive Index (TRI). It would be managed by Vinay Paharia, Parijat Agrawal, and Hardik Bora.

G. Pradeepkumar, Chief Executive Officer (CEO) of Union Asset Management Company Private Limited, said that among other things, prudent asset allocation forms the bedrock of successful investment results. Different asset instructions do not normally move within the tandem and hence taking exposure to Union Hybrid Equity Fund which inherently gives a mixture of equity and debt can be the best selection for investors seeking out a balanced approach to asset allocation.

Pradeepkumar added that the scheme would endeavor to maintain a sensible blend of equity and debt within the basic limits allowed for this class. All investment decisions in this scheme portfolio would be guided by the strong investment process of the company. Similar to various mutual fund schemes available, the Union Hybrid Equity Fund has the following alternatives for the investors:

Growth Option: This option is appropriate for buyers who aren’t in search of dividends but who invest with the purpose of capital appreciation.

Dividend Option: This option is suitable for investors in search of profits through a dividend declared by the scheme. Under this option, the scheme will endeavor to declare dividend on time to time basis. Dividends are dependent upon the supply of distributable surplus.

There are numerous types of hybrid schemes with varying allocation in equities and debt assets. Hybrid equity schemes with aggressive allocation are suitable for those people who wish to take exposure to both equity and debt assets and yet experience the tax benefit of equity schemes.


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