ThinkStock PhotosUnion AMC has announced the launch of Union Medium Duration Fund- an open-ended medium-term debt scheme investing in instruments with Macaulay duration of the portfolio is between 3 to 4 years.
The New Fund Offer opens on 24th August 2020 and closes on 7th September 2020. The scheme will re-open for continuous sale and repurchase on 21st September 2020. The Scheme is benchmarked against CRISIL Medium Term Debt Index and will be managed by Parijat Agrawal and Anindya Sarkar. The minimum investment required is Rs 5,000 and in multiples of Rs 1 thereafter.
“The launch of Union Medium Duration Fund is a step towards bridging the gap in the fixed income debt scheme offerings from our company. The portfolio construction of this scheme is aimed to be done with a prudent combination of strategic allocation to PSU/Corporate bonds of high credit quality and tactical allocation to securities issued by the Government of India," G. Pradeepkumar, Chief Executive Officer, Union AMC, said.
"In recent times, the interest rates on short term securities have come down considerably but the rates on longer-term securities are still at an elevated level. The spread between yields of short term and long term securities has widened and is at a level above their long term average. In future, as this gap narrows, the yields of long term securities are expected to fall resulting in gains for investors. The portfolio construction of this scheme would be guided by our robust fixed income investment process,” Pradeepkumar added.
The New Fund Offer opens on 24th August 2020 and closes on 7th September 2020. The scheme will re-open for continuous sale and repurchase on 21st September 2020. The Scheme is benchmarked against CRISIL Medium Term Debt Index and will be managed by Parijat Agrawal and Anindya Sarkar. The minimum investment required is Rs 5,000 and in multiples of Rs 1 thereafter.
“The launch of Union Medium Duration Fund is a step towards bridging the gap in the fixed income debt scheme offerings from our company. The portfolio construction of this scheme is aimed to be done with a prudent combination of strategic allocation to PSU/Corporate bonds of high credit quality and tactical allocation to securities issued by the Government of India," G. Pradeepkumar, Chief Executive Officer, Union AMC, said.
"In recent times, the interest rates on short term securities have come down considerably but the rates on longer-term securities are still at an elevated level. The spread between yields of short term and long term securities has widened and is at a level above their long term average. In future, as this gap narrows, the yields of long term securities are expected to fall resulting in gains for investors. The portfolio construction of this scheme would be guided by our robust fixed income investment process,” Pradeepkumar added.
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