Latest news with #UnionLowDurationFund
Time of India
2 days ago
- Business
- Time of India
NFO Alert: Union Mutual Fund launches low duration fund
Synopsis Union Mutual Fund has announced the launch of the Union Low Duration Fund, the scheme designed for investors looking to optimise their idle money for short-term i.e.3 to 12-month investment horizon
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Business Standard
2 days ago
- Business
- Business Standard
Union Mutual Fund launches 'low risk', short-term debt investment scheme
Union Mutual Fund has a new debt scheme for investors wanting to park surplus money for a short period: from three to 12 months. The New Fund Offer (NFO) opened on Thursday and will close on July 10, 2025. Union Low Duration Fund is a flexible and structured alternative to traditional savings instruments, especially at a time when short-term debt instruments are offering relatively attractive yields, said the company. The fund will invest in a mix of debt and money market instruments while maintaining a Macaulay Duration of six to 12 months. What is Macaulay Duration Macaulay Duration is a way to measure how long, on average, it takes for an investor to recover their money from a bond or debt investment, including both interest and principal. A shorter duration (like six to 12 months) means: The fund is less affected by changes in interest rates. It is better suited for short-term investors. It has lower risk compared to longer-duration debt funds. Key features of the fund NFO dates: June 26 – July 10, 2025 I deal investment period: 3 to 12 months Investment focus: High-quality debt and money market instruments Liquidity: Open-ended structure allows entry and exit after NFO Management's words 'This scheme is not about chasing high yields. It's about structure, timing, and giving purpose to your short-term money,' said Madhu Nair, chief executive officer, Union Asset Management Company. He added that in the current environment of evolving interest rates and surplus liquidity, the fund offers a pragmatic solution for idle cash. Parijat Agrawal, head of fixed income at Union AMC, said, 'We're tracking liquidity, interest rate curve movements, and broader macro trends. A low duration strategy gives us the flexibility to act swiftly.' Opportunities and Risks Opportunities -Potentially better returns than savings accounts or ultra-short FDs -Actively managed to respond to rate changes -Low duration reduces volatility and interest rate risk Risks -Returns are market-linked and not guaranteed -Some exposure to credit and reinvestment risk -Not ideal for long-term goals Who Should Consider This Fund? Individuals with idle funds for a few months Conservative investors looking for stable, low-risk returns Those looking to temporarily park money instead of keeping it in a bank Before investing, it's best to consult a financial advisor to understand whether this fund fits your needs. Detailed information is available in the Scheme Information Document on
