Union Mutual Fund launches Union Business Cycle Fund

Union Mutual Fund on Tuesday launched the Union Business Cycle Fund, an open-ended equity scheme, which follows a business cycles-based investing theme.

The new fund offer of the scheme opened for subscription today and will close on February 27.

The scheme will be managed by Sanjay Bembalkar and Hardick Bora. It will be benchmarked against Nifty 500 Index TRI.


The minimum investment amount is Rs 1,000 and in multiples of Re 1 thereafter. The exit load is 1% if units are redeemed/switched out on or before completion of 1 year from the date of allotment and nil if redeemed or switched out after completion of 1 year from the date of allotment of units.

The scheme will offer direct and regular plans with growth and Income Distribution Cum Capital Withdrawal (IDCW) Option.

The scheme aims to take active aggressive allocation between leading sectors (sectors outperforming the broader market) and lagging sectors (sectors underperforming the broader market) based on the stage of the business cycle in the economy.

It will invest 80-100% in equity and equity related instruments selected on the basis of business cycle, 0-20% in equity and equity related instruments of companies other than business cycle, 0-20% in debt and money market instruments including units of debt oriented mutual fund schemes, and 0-10% in units issued by REITs and InvITs.

"As professional money managers looking to generate consistent performance, it is crucial to embrace the cyclical nature of markets and treat the long term as a series of shorter terms. Adjusting portfolio positioning in accordance with ‘where we are in the cycle’ helps reduce opportunity costs and optimize returns,” said Harshad Patwardhan, Chief Investment Officer, Union AMC.

The scheme is suitable for investors who are seeking capital appreciation over the long term and looking for investment predominantly in equity and equity-related instruments of business cycle-based theme Nifty 500 Index (TRI).

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