The New Fund Offer (NFO) will close for subscription on June 5, 2025. The fund will reopen for ongoing subscriptions within five business days from the date of allotment.
The fund seeks to deliver medium- to long-term income through dynamic allocation between arbitrage and debt fund components. It may invest up to 65% of its assets in arbitrage strategies or in debt-oriented funds, depending on market conditions.
Union Mutual Fund highlighted that the product is intended for investors looking for a tax-efficient income solution. If held for more than 24 months, the fund may qualify for equity-like long-term capital gains taxation at 12.5% (including surcharge, excluding cess).
Key features of the scheme include:
Diversified income strategy combining arbitrage and debt fund exposures
Simplified portfolio access via a single NAV
Professional management by Vishal Thakker (Arbitrage), Anindya Sarkar, and Shrenuj Parekh (Debt)
The launch aligns with the fund house’s broader strategy to offer investor-centric solutions. Recent products from Union Mutual Fund include the Union Multi Asset Allocation Fund (launched in August 2024) and Union Gold ETF-based offerings.
The scheme is positioned as a potential alternative to traditional debt funds, especially in a declining interest rate environment.
Parijat Agrawal, Head – Fixed Income at Union AMC, said the fund helps investors access income opportunities without actively managing multiple exposures. Madhu Nair, MD & CEO of Union AMC, noted that the fund offers improved tax-adjusted returns compared to conventional debt products.
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First Published: May 22, 2025 9:16 AM IST