With the rising popularity of new fund offers (NFOs) as an investment method, investors are always on the lookout for the launch of new schemes. Union Mutual Fund has now launched a new open-ended short-term debt scheme, named Union Short Duration Fund.
Incidentally, a short-duration fund is a type of scheme that invests money in debt and money market securities. The portfolio duration is typically between one and three years for short-term debt funds.
Here’s a look at the key details of Union Short Duration Fund:
Key Dates
The Union Short Duration Fund opened for subscription on January 15, 2025. Investors can subscribe to the scheme till January 28, 2025. The scheme will reopen for subscription five days after the allotment date
Subscription Amount
Minimum investment required is Rs 1,000 and in multiples of Re 1 thereafter.
Investors who wish to subscribe to the scheme through systematic investment plan (SIP) can do so by paying Rs. 100 and in multiples of Re 1 thereafter for daily frequency, and Rs. 500 and in multiples of Re 1 thereafter for weekly frequency. The minimum subscription amount for fortnightly and monthly frequency is Rs 500 and in multiples of Re 1 thereafter.
Investment Objective
The objective of the scheme is to provide reasonable returns and liquidity through investment in debt and money market instruments. The scheme aims to achieve its objective while maintaining the balance of safety, liquidity and returns.
What Does The Fund Invest In
The Union Short Duration Fund invests in debt and money market instruments such as Government securities (G-secs), securities created and issued by the central and state governments as may be permitted by the Reserve Bank of India (RBI), securities guaranteed by the central and state governments, state development loans (SDLs), debt instruments issued by domestic government agencies and statutory bodies, corporate bonds of public sector and private sector undertakings, and other such instrument
Exit Load
The fund house has mentioned in the scheme document that an exit load of 1 per cent will be levied if units are redeemed or switched out on or before completion of 15 days from the date of allotment.
After the date of allotment, no exit load will be charged on redemption or switching units.
Risk Profile
The risk profile of the scheme has been termed as ‘moderate risk’. The underlying index tracked by
the scheme is Amfi Tier-I Benchmark and Crisil Short Duration Debt A-II Index.
Who Is The Fund Ideal For
According to the scheme document, the Union Short Duration Fund is ideal for investors seeking short-term income generation and capital appreciation. The scheme seeks to provide short-term income generation by investing in a range of debt and money market instruments of different maturities
