Union Focussed Largecap Fund is an open-ended equity scheme, which will invest predominantly in a portfolio of select equity and equity-linked securities of large cap companies. Investors who want to earn high returns and want to create long-term capital appreciation may invest in such a scheme. The risk associated with the scheme is moderately high.
Here are a few things you should know before investing in this scheme:
New Fund Offer time period
The NFO opened on April 20, 2017, and closes on April 28, 2017.
The investment objective of the scheme is to seek to generate capital appreciation by investing in a portfolio of select equity and equity-linked securities of large cap companies. However, there can be no assurance that the investment objective of the scheme will be achieved.
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Under normal circumstances, the asset allocation pattern will be as follows:
- Provided a minimum of 80% will be invested in large cap companies.
- Large cap companies are companies which have a market capitalization of upto the top 100th listed company on the Bombay Stock Exchange (BSE) in terms of market capitalisation. The scheme intends to limit the number of companies in the portfolio to between 20 – 30 equity stocks.
- Investment in Securitized Debt – Nil
- Investments in Derivatives – upto 50% of the net assets of the scheme
- Investments in Securities Lending – upto 20% of its net assets of the scheme (where not more than 5% of the net assets of the scheme will be deployed in securities lending to any single counter-party).
Liquidity of the Scheme
The scheme offers units for subscription/switch in and redemption/ switch out at NAV-based prices on all business days on an on-going basis, commencing not later than five business days from the date of allotment. In other words, the scheme shall be available for on-going repurchase / sale within five business days of allotment. Under normal circumstances, the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of valid redemption request from the unit holder. The units of the scheme are presently not proposed to be listed on any exchange.
There is no entry load. However, 1% if units are redeemed/switched out within 1 year from the date of allotment. Nil thereafter. No load will be applicable for switches between the plans under the scheme and switches between the options under each plan under the scheme.
Service tax on exit load, if any, will be paid out of the exit load proceeds and exit load net of service tax, if any, will be credited to the scheme.
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Minimum Application Charges
The MAC will be Rs 1000 and can be increased in multiples of Rs 1 thereafter.
S&P BSE 100 Index is the benchmark of the scheme.
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.