Unifi Mutual Fund files a draft document with Sebi for its first fund

Unifi Mutual Fund has filed a draft document with Sebi to launch its first fund, a dynamic asset allocation. In November, portfolio management firm Unifi Capital received the final approval from the Securities and Exchange Board of India (Sebi) to start its mutual fund operations through its unit, Unifi Asset Management.

Unifi Dynamic Asset Allocation Fund will be an open-ended dynamic asset allocation fund. The investment objective of the scheme will be to generate income and/or capital appreciation by investing in a dynamically managed portfolio of fixed income instruments, equity and equity derivatives and other permissible equity/hybrid instruments.

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The scheme will be benchmarked against CRISIL Hybrid 50 + 50 Moderate Index and will be managed by Saravanan V N, Aejas Lakhani, Karthik Srinivas.


The scheme will offer regular and direct plans both with growth options only. In respect of each purchase of units via lumpsum /switch in/ systematic investment plan (SIP) and systematic transfer plan (STP-in), exit load on redemption/ switch out will be determined as follows:

• In case units are redeemed/switched out within 12 months from the date of allotment:
  

o Up to 20% of such units – exit load will be nil

o In excess of 20% of such units – 1.5% of applicable NAV will be charged as exit load.

• In case units are redeemed/switched out after 12 months from the date of allotment, no exit load is applicable.
  

.The minimum application amount for lumpsum investment will be Rs 5,000 and in multiples of Re 1 thereafter. For Systematic Investment Plan (SIP), the minimum investment amount will be Rs 500 and in multiples of Re 1.

The minimum additional purchase amount will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum redemption/switch out amount will be Re 1 or 1 unit or account balance, whichever is lower.

The scheme will allocate 0-100% in equities and equity related instruments and 0-100% in debt securities and money market instruments. The maximum total expenses ratio (TER) permissible under Regulation 52(6) (c) for % p.a. of daily net assets (estimated p.a. for equity oriented scheme) will be up to 2.25% and for % p.a. of daily net assets (estimated p.a. for other than equity oriented schemes) will be up to 2%.

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The strategy will be to invest in a diversified portfolio of debt, equity and arbitrage instruments with an endeavour to generate consistent returns with minimal volatility and downside risks. The investment strategy will be active in nature. The allocation between debt and equity will be managed dynamically with an intent to generate income and capital appreciation opportunities.

The scheme will be suitable for investors who are seeking income generation and capital appreciation over the medium to long term and want to invest in a diversified portfolio of debt, money market, equity and equity related instruments while managing risk through active asset allocation. The principal invested in the scheme will be at “high risk” according to the riskometer of the scheme.

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