Union Midcap Fund has given an annualised return of around 50% since its launch on 23 March 2020. As per data on the AMFI website, the direct plan of Union Midcap Fund has given a return of 51.06% since launch while the regular plan has given a return of 49.13% return (as of November 11, 2022).
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this midcap fund since launch would have grown to over Rs 3 lakh at the rate of 51% in 2.5 years. Similarly, a monthly SIP of Rs 10,000 would have grown to over Rs 6 lakh in 2.5 years.
While there is no assurance or guarantee that the Union Midcap Fund would sustain its past performance in future, here are 5 points you should know about this scheme:
Open-ended Equity Scheme: Union Midcap Fund is an open-ended equity scheme predominantly investing in mid-cap stocks. The scheme aims to achieve long-term capital appreciation and generate income by investing predominantly in equity and equity-related securities of mid-cap companies, according to the scheme’s Key Information Document (KID).
Also Read: Top 10 midcap schemes with highest returns since inception
Asset Allocation: Union Midcap fund can invest a minimum of 65% in equity and equity-related instruments of mid-cap companies and a maximum of up to 100%. The scheme can invest up to 35% in equity and equity-related instruments of companies other than mid-cap companies. It can also invest up to 35% in Debt and Money Market instruments and up to 10% in Units issued by REITs and InvITs.
Top holdings: Some of the top holdings of Union Midcap Fund are Tube Investments of India Ltd (3.5%), Dixon Technologies (India) Ltd (3.2%), Devyani Internation Ltd (3.1%), Schaeffler India Ltd (3%), Varun Beverages Ltd (2.9%), Max Healthcare Institute Ltd (2.9%), Phoenix Mills Ltd (2.9%), Motherson Sumi Wiring India Ltd (2.9%), Polycab India Ltd (2.8%) and PI Industries Ltd (2.7%).
Total AUM and NAV: The fund size, or asset under management, of Union Midcap Fund as of November 10, 2022, is Rs 565.70 crore. The Net Asset Value (NAV) of Union Midcap Fund under the direct plan is 29.6600 and 28.6700 under the regular plan.
Also Read: Top 10 tax saving ELSS mutual funds with highest Direct Plan returns
Returns in 1 year: Despite high overall returns since launch, in the last 1 year, Union Midcap Fund has given a negative return of -0.38% under the regular plan and 1.06% under the direct plan. The scheme comes with two options under both direct and regular plans – Growth and Income Distribution cum Capital Withdrawal Option (IDCW).
Union Asset Management Company is a subsidiary of Union Bank of India, which is a public sector bank.
(The above content is for information purposes only. Mutual fund investments are subject to market risks. Please consult your financial advisor before making any investment)