Union AMC launches Union Gilt Fund

Union AMC has launched Union Gilt Fund, an open-ended debt scheme investing a minimum of 80% assets in government securities. The New Fund Offer of Union Gilt Fund is now open and will close on August 1. The scheme is benchmarked against CRISIL Dynamic Gilt Index and will be managed by Parijat Agrawal and Anindya Sarkar. The minimum investment required is Rs 1,000 and in multiples of Rs. 1 thereafter.

“The launch of Union Gilt Fund is in line with our constant endeavor to offer products that help our investors in wealth creation. With the introduction of this Scheme, our debt product basket now offers Schemes with varied credit and duration risk. We believe this Scheme will serve all such investors who are looking for credit risk free returns over a period of three years or more,” said G Pradeepkumar, Chief Executive Officer, Union Asset Management Company Private Limited.

“Current elevated levels of yield on debt instruments are potentially a good entry point for investors. Sovereign securities carry the lowest level of credit risk. At current levels, it has a possible dual advantage in the form of higher accrual income, as also the possibility of capital gains as and when interest rate cycles reverse in future. Investors with a three-year horizon can also benefit from long term capital gains taxation,”said Parijat Agrawal, Head-Fixed Income, Union Asset Management Company Private Limited.