Union Mutual Fund launches All Cap FoF, says first SIF product coming in November
The allocation framework is built on an Anchor–Explorer model. Between 40 and 60 percent of the portfolio will remain anchored in Union’s multi-cap fund, providing stability across market cycles. The remaining portion will be actively managed in “explorer” funds, where allocations can shift more aggressively between large, mid, and small-cap strategies depending on relative valuations, growth prospects, and fund flows.
Union Mutual Fund will be launching its first Specialised Investment Fund (SIF) by November 2025, details of which will be announced in the coming weeks.
Speaking during the launch of the Union Diversified Equity All Cap Active Fund of Fund (FoF), CEO Madhu Nair said the brand name Arthaya – derived from the Sanskrit, meaning ‘wealth’ – has been finalized.
To strengthen its capabilities in this space, Union MF has recruited veteran fund manager Rajesh Aynor, who previously managed one ITI’s long-short funds, bringing more than two decades of investing experience.
Talking about the Fund of Fund launch, Nair said the Equity All Cap Active FOF is a product designed to simplify equity investing by dynamically allocating across large, mid and smallcap Union MF equity schemes. The fund seeks to eliminate the complexity of timing, selection and allocation while retaining the tax benefits of an equity fund.
Nair said the re-allocations happen within the FoF and there is no tax on intermediate switches under Section 23D. Investors only face taxation at the time of final redemption, making the strategy more efficient. “This solves multiple problems in one stroke—too many schemes to choose from, uncertainty over which cap to bet on, the difficulty of getting both entry and exit right, and the tax drag from switching. Here, the portfolio managers handle all of it internally,” Madhu Nair said.
Union MF maintained the the All Cap FoF is not just another version of a multicap or flexicap scheme. While those funds are managed by a single fund manager investing directly in stocks, the FoF invests in multiple underlying funds, offering investors exposure to different fund managers’ approaches and thought processes. This creates both portfolio as well as fund manager diversification.
The allocation framework is built on an Anchor-Explorer model. Between 40 and 60 percent of the portfolio will remain anchored in Union’s multicap fund, providing stability across market cycles. The remaining portion will be actively managed in ‘explorer’ funds, where allocations can shift more aggressively between large, mid, and smallcap strategies depending on relative valuations, growth prospects and fund flows.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.