Union Innovation & Opportunities Fund, an offering from Union Mutual Fund, has opened for subscription on Wednesday. The new fund offer (NFO) will be available till August 30, 2023. It is an open-ended equity scheme falling under the sectoral/thematic category. The scheme's primary goal is to achieve substantial capital growth by predominantly investing in equity and equity-related securities of innovative companies.

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Investment approach

The scheme comes with a distinctive approach, capitalizing on companies that have demonstrated a penchant for innovation across various sectors. This thematic investment strategy aims to capture growth potential by identifying businesses that stand at the forefront of technological advancements, creative solutions, and transformative changes. Investors who are looking to tap into the dynamic landscape of innovation can find this fund to be an intriguing option, the fund house said.

Investment amount

Investors can start investing with a minimum subscription amount of Rs 1,000, with the flexibility to add in multiples of Rs 1 thereafter.

Entry/exit load

The scheme does come with an entry load. However, exit load of 1 percent is there in case units are redeemed or switched out within the first year from the date of allotment. However, this load is waived off for units redeemed or switched out after completing one year from the date of allotment, offering a clear incentive for those with a longer investment horizon.

Plans available

The scheme has the following plans across a common portfolio:

Direct plan: Direct plan is only for investors who purchase/subscribe units in the scheme directly with Union Mutual Fund and is not available for investors who route their investments through a Distributor (AMFI registered distributor/ARN Holder).

Regular Plan: Regular plan is for investors who purchase/subscribe units in the scheme through a distributor. The direct plan shall have a lower expense ratio as compared to the regular plan to the extent of distribution expenses, commission, etc. and no commission for distribution of units will be paid / charged under the direct plan. The direct plan shall have a separate NAV.

Asset allocation

(Source: Fund document)

Fund manager

Hardick Bora and Sanjay Bembalkar are the fund managers.

Should one invest?

With the financial markets constantly evolving and innovation driving economic growth, this new fund presents an avenue for investors to align their portfolios with groundbreaking companies.

As with any investment decision, potential investors are advised to carefully consider their financial goals, risk tolerance, and investment horizon. While the prospect of investing in innovative companies may offer enticing growth potential, it's crucial to remember that sectoral/thematic funds often come with a higher level of risk due to their focused nature. It's advisable for investors to consult with financial advisors and thoroughly understand the fund's objectives, strategy, and associated risks before making any investment decisions, experts say.

A look at other NFOs available now

(Source: Moneycontrol)

First Published:Aug 16, 2023 12:30 PM IST