The Union Innovation and Opportunity Fund is an open equity program by sector/thematic category. The main objective of the scheme is to achieve substantial capital growth primarily by investing in equity and equity securities of innovative companies.
Union Innovation and Opportunity Fund, an offering of Union Mutual Fund, opened for subscription on Wednesday. The New Fund Offer (NFO) will be available until August 30, 2023. This is an open share program by sector/thematic category. The main objective of the scheme is to achieve substantial capital growth primarily by investing in equity and equity securities of innovative companies.
Alive
Investment approach
The program comes with a unique approach, using companies that have demonstrated a penchant for innovation in various sectors. This thematic investment strategy aims to capture growth potential by identifying companies at the forefront of technological breakthroughs, creative solutions and transformative change. Investors looking to tap into a dynamic innovation landscape may find this fund an interesting option, the fund house said.
Investment cost
Investors can start investing with a minimum subscription amount of Rs 1,000 and then have the option to add multiples of Rs 1.
Input/output load
The scheme comes with an entry fee. However, if the units are redeemed or exchanged within the first year from the date of grant, a 1% exit fee applies. However, this charge is waived for shares redeemed or exchanged after one year from the date of grant, providing a real incentive for those with a longer investment horizon.
Packages available
The program includes the following plans in the overall portfolio:
Direct Plan: The direct plan is reserved for investors who purchase/subscribe to units of the scheme directly from Union Mutual Fund and is not available to investors who route their investments through a distributor (distributor registered with AMFI/RNA holder).
Regular Plan: Regular plan is for investors who purchase/subscribe to program shares through a distributor. Distribution fees, commissions, etc. in the direct plan. in terms of volume, the expense ratio will be lower as compared to the regular plan and no unit allocation commission will be paid/charged under the Direct plan. A direct plan will have its own NAV.
Allocation of assets
| instruments | Indicative allocation (% of total assets) | Risk profile | |
| The least | Maximum | ||
| Equity and equity instruments of innovative companies | 80% | 100% | Very high |
| Shares and equity instruments of companies other than those mentioned above | 0% | 20% | Very high |
| Debt securities and money market instruments | 0% | 20% | Low to moderate |
| Units issued by REITs & InvITs | 0% | ten percent | Very high |
(Source: Foundation document)
Head of the financial department
Hardik Bora and Sanjay Bembalkar are fund managers.
Should you invest?
As financial markets constantly evolve and innovation drives economic growth, this new fund offers investors the opportunity to align their portfolios with dynamic companies.
As with any investment decision, potential investors are advised to carefully consider their financial goals, risk tolerance and investment horizon. Although the prospect of investing in innovative companies can offer attractive growth potential, it is important to remember that sector/theme funds often carry a higher level of risk due to their targeted nature. According to experts, investors are advised to consult their financial advisors and fully understand the fund’s objectives, strategy and associated risks before making any investment decision.
Overview of other NFOs available now
| Schema name | Category | Type | Opening day | Closing date |
| Kotak S&P BSE Housing Index Fund – Direct Plan – Growth | Other Index Funds/ETFs | Open | August 07-23 | 21 August 23 |
| Kotak S&P BSE Housing Index Fund – Direct Plan – IDCW | Other Index Funds/ETFs | Open | August 07-23 | 21 August 23 |
| Kotak S&P BSE Housing Index Fund – Fixed Plan – Growth | Other Index Funds/ETFs | Open | August 07-23 | 21 August 23 |
| Kotak S&P BSE Housing Index Fund – Fixed Plan – IDCW | Other Index Funds/ETFs | Open | August 07-23 | 21 August 23 |
| Nippon India Innovation Fund – Sustainable Plan – Growth | Capital-Sector/Thematic | Open | 09-23 August | 23 August 23 |
| Nippon India Innovation Fund – Direct Scheme – Growth | Capital-Sector/Thematic | Open | 09-23 August | 23 August 23 |
| Nippon India Innovation Fund – Standing Plan – IDCW | Capital-Sector/Thematic | Open | 09-23 August | 23 August 23 |
| Nippon India Innovation Fund – Direct Plan – IDCW | Capital-Sector/Thematic | Open | 09-23 August | 23 August 23 |
| HSBC Consumer Funds – Direct Plan – Growth | Capital-Sector/Thematic | Open | 10 August 23 | 24 August 23 |
| HSBC Consumer Funds – Fixed Plan – Growth | Capital-Sector/Thematic | Open | 10 August 23 | 24 August 23 |
| HSBC Consumer Fund – Fixed Plan – IDCW | Capital-Sector/Thematic | Open | 10 August 23 | 24 August 23 |
| HSBC Consumer Fund – Direct Scheme – IDCW | Capital-Sector/Thematic | Open | 10 August 23 | 24 August 23 |
| Bandhan Nifty IT Index Fund – Direct Plan – IDCW | Other Index Funds/ETFs | Open | 18 August 23 | 28 August 23 |
| Bandhan Nifty IT Index Fund – Fixed Plan – Growth | Other Index Funds/ETFs | Open | 18 August 23 | 28 August 23 |
| Bandhan Nifty IT Index Fund – Direct Plan – Growth | Other-index funds/ETFs | Open | 18 August 23 | 28 August 23 |
(Source: Moneycontrol)
cnbctv18-forexlive-benzinga
All news on the site does not represent the views of the site, but we automatically submit this news and translate it through software technology on the site, rather than a human editor.
