Union Multi Asset Allocation Fund is Introduced by Union Asset Management Company Private Limited

News Desk, News Nation 360 : With support from Union Bank of India and Dai-ichi Life Holdings Inc., Union Asset Management Company Private Limited (Union AMC) has announced the launch of its New Fund Offering (NFO), Union Multi Asset Allocation Fund, allowing investors to diversify their portfolio across asset classes in an extremely volatile market characterised by persistent geopolitical tensions and uncertainty in the global economy. On August 20, 2024, the NFO of the Union Multi Asset Allocation Fund—an open-ended scheme that invests in debt, equity, gold, and/or silver—opened for subscriptions. It closes on September 3, 2024. The plan will distribute investors' money among several asset classes, including units of exchange-traded funds (ETFs) that track gold or silver, debt and money market instruments, equity and equity-related instruments, and units of REITs and InvITs. The fund firm will use a top-down and bottom-up stock selection technique with allocation across market capitalisation to invest between 65 and 80 per cent of the corpus in equity and equity-related instruments. Moreover, the plan will invest between 10 and 25 per cent in debt and money market instruments, taking into account factors including credit quality, liquidity, interest rates, and outlook before making the transaction. Given that gold prices have recently reached all-time highs on both domestic and international markets, the scheme has set aside 10–25% of the fund to purchase units of gold exchange-traded funds (ETFs) and/or 0–10% to purchase units of silver ETFs. This will help investors diversify their risk exposure from debt and equity. Madhu Nair, Chief Executive Officer of Union Mutual Fund, stated that being an investment-led fund institution, they think that one of the most underestimated methods is asset allocation. They wish to reassure their investors of this conviction. Rather than chasing asset classes during euphoric times, a diversified asset allocation strategy would yield greater risk-adjusted returns over the long run. One excellent option for adding to any investor's portfolio is the Union Multi Asset Allocation Fund, which gives investors the chance to take part in asset class cycles.