Lucknow Today News: Union Mutual Fund has launched a new scheme called Union Diversified Equity All Cap Active Fund of Funds (FoF).This fund is designed for investors who want to invest across large-cap, mid-cap, and small-cap companies through a single fund.
The fund will follow a dynamic allocation strategy, which means investors’ money will be spread across companies of different market sizes.
This will save them from the hassle of deciding when to invest, which fund to select, and how to manage tax issues.
Why This Fund Matters
According to Fortune India’s May 2025 report, the share of equity investment in India is still just 8%, much lower than countries like:
China: 15–20%
US: 45–50%
Japan: 55–60%
Even though the mutual fund industry in India is growing, the total number of unique investors is only 5.53 crore (as of June 2025). This highlights the need for simple and investor-friendly options like this new FoF.
The New Fund Offer (NFO) of Union Diversified Equity All Cap Active FoF will open on September 1, 2025 and close on September 15, 2025. After allotment, it will reopen for investment within 5 business days.
Key Benefits and Strategy
Madhu Nair, CEO of Union Asset Management Company Pvt. Ltd., said that many investors struggle to choose the right fund or the right time to invest. This new fund aims to solve those problems by offering:
A diversified portfolio across market caps
Tax benefits similar to equity funds
The fund’s allocation strategy is based on Union Mutual Fund’s “anchor-explorer framework”:
Anchor funds → represent a long-term strategic approach
Explorer funds → capture short-term market opportunities
A Good Choice for Investors
Harshad Patwardhan, CIO of Union AMC, explained that the anchor-explorer model provides flexibility and balanced exposure across large, mid, and small-cap stocks.
The goal is to deliver better returns and an improved investment experience through active management.
This new offering is expected to be a good option for both new and existing investors who want to benefit from equity markets over the long term.
