The New Fund Offer for the recently launched Union Midcap Fund will open on March 2 and end on March 16. The fund is an open-ended scheme primarily investing in equities and is suitable for investors with a moderately high risk profile. The minimum amount to invest is Rs 5,000, further units can be bought with the multiples of Re 1.
According to the Union AMC, once you have subscribed to the fund the allotment of units will be on March 23. Following that the fund will reopen for perpetual sale and repurchase on March 30. The scheme is benchmarked against Nifty Midcap 100 Index$ (TRI) and will be managed by Vinay Paharia and Hardick Bora.
The scheme will predominantly invest in equity and equity-related instruments of mid-cap companies. “Midcaps are typically associated with high growth potential, but they also come with higher volatility, especially in the short term. Some of the stocks from the midcap category tend to grow at a faster rate and eventually become large. However, there are many companies in the midcap segment that falter and fail to grow. Hence, stock selection becomes a crucial factor while managing a mid-cap fund. Having the right allocation to midcap funds can enhance the overall returns of one’s portfolio,” said G Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Pvt Ltd.