The New Fund Offer (NFO) of the Scheme opens on 27th November 2020 and closes on 11th December 2020.
Union AMC, co-sponsored by Union Bank of India and Dai-ichi Life Holdings, Inc. of Japan, has announced the launch of Union Hybrid Equity Fund, an open-ended hybrid scheme investing predominantly in equity and equity-connected instruments. The investment objective of the scheme is to realize extended-term capital development and create earnings from a portfolio, predominantly of equity and equity-connected securities. The scheme will also invest in debt & revenue market place instruments.
The scheme will invest a minimum of 65% in equity and a maximum of 35% in debt. The New Fund Offer (NFO) of the Scheme opens on 27th November 2020 and closes on 11th December 2020. The allotment would be on 18th December 2020 and it will re-open for continuous sale and repurchase on 28th December 2020.
The Scheme is benchmarked against CRISIL Hybrid 35+65 Aggressive Index (TRI) and will be managed by Vinay Paharia, Parijat Agrawal and Hardick Bora. The minimum investment expected is Rs five,000 and in multiples of Re 1 thereafter.
G. Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Private Limited, mentioned “Among other things, prudent asset allocation forms the bedrock of a successful investment outcome. Different asset classes do not generally move in tandem and hence taking exposure to Union Hybrid Equity Fund which inherently offers a combination of equity and debt can be a good choice for investors looking for a balanced approach to asset allocation. This scheme shall endeavour to maintain a judicious mix of equity and debt within the overall limits allowed for this category. All investment decisions in this scheme portfolio will be guided by our strong investment process”
Similar to other mutual fund schemes, the Union Hybrid Equity Fund has the following possibilities for the investors:
Growth Option: This solution is appropriate for investors who are not in search of dividend but who invest only with the intention of capital appreciation.
Dividend Option: This solution is appropriate for investors in search of earnings by means of dividend declared by the Scheme. Under this solution, the scheme will endeavour to declare dividends from time to time. The dividend shall be dependent on the availability of distributable surplus. The dividend solution has the following facilities
Dividend Re-investment Facility
Dividend Pay-out Facility
Dividend Sweep Facility
There are quite a few varieties of hybrid schemes with varying allocation in equities and debt assets. Hybrid equity schemes with aggressive allocation suit these who want to take exposure to each equity and debt assets and however appreciate the tax advantage of equity schemes.