Union Business Cycle Fund details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @chanakyamfguidance
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Past Performance of NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the Union Business Cycle Fund Open Date, Close Date?
NFO opens on February 13, 2024
NFO will close on February 27, 2024
What is Fund Investment Strategy?
The Scheme seeks to generate long-term capital appreciation by investing with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles in the economy.
Basic Details
Fund House | Union Mutual Fund |
Issue Open | 13 February 2024 |
Issue Close | 27 February 2024 |
Type | Open-ended |
Category | Equity: Thematic |
Min. Investment(Rs) | 1,000 |
Plans | Growth, IDCW |
Lock-in Period | NA |
Exit Load | 1% for redemption Within 1 year |
Riskometer | Very High |
Benchmark | NIFTY 500 TRI |
What is the Benchmark Index?
The Nifty 500 index represents top 500 companies selected based on full market capitalization from the eligible universe.
Nifty 500 Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base period. Nifty 500 can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variants: Nifty 500 Total Returns Index, Nifty500 Industry Indices
Portfolio Characteristics
Methodology | Free Float Market Capitalization |
No. of Constituents | 501 |
Launch Date | |
Base Date | January 01, 1995 |
Base Value | 1000 |
Calculation Frequency | Real-Time |
Index Rebalancing | Semi-Annually |
Past Performance of Benchmark Index
Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
Price Return | 1.92 | 1.92 | 32.58 | 17.07 | 10.80 |
Total Return | 1.95 | 1.95 | 33.81 | 18.35 | 12.53 |
Statistics ## | 1 Year | 5 Years | Since Inception |
Std. Deviation * | 9.90 | 18.42 | 22.46 |
Beta (NIFTY 50) | 0.94 | 0.95 | 0.93 |
Correlation (NIFTY 50) | 0.96 | 0.99 | 0.95 |
Fundamentals
P/E | P/B | Dividend Yield |
24.2 | 3.98 | 1.11 |
Top constituents by weightage
Company’s Name | Weight (%) |
HDFC Bank Ltd. | 7.01 |
Reliance Industries Ltd. | 6.16 |
ICICI Bank Ltd. | 4.60 |
Infosys Ltd. | 3.78 |
Larsen & Toubro Ltd. | 2.62 |
ITC Ltd. | 2.50 |
Tata Consultancy Services Ltd. | 2.47 |
Axis Bank Ltd. | 1.89 |
Kotak Mahindra Bank Ltd. | 1.89 |
Bharti Airtel Ltd. | 1.71 |
Performance Review of the Fund Managers of Union Business Cycle Fund?
1) Hardick Bora
Education: Mr. Bora is a CFA charterholder with the CFA Institute, USA and Bachelors in Banking and Insurance from University of Mumbai.
Experience: Prior to joining Union Mutual Fund, he has worked with Motilal Oswal Securities Ltd., Dolat Capital Markets Pvt Ltd. as Research Associate, Khandwala Securities Ltd. as Research Associate, Yen Management Consultants Pvt. Ltd. and 3 Global Services Pvt. Ltd.
Past Performance of his Schemes
Fund | Union Small Cap Fund | It’s Benchmark | Union Balanced Advantage Fund | It’s Benchmark |
1 Year | 48.25 | 61.49 | 17.25 | 22.42 |
3 Year | 31.12 | 33.80 | 9.11 | 14.81 |
5 Year | 26.56 | 24.89 | 11.80 | 14.68 |
7 Year | 18.65 | 17.88 | — | — |
10 Year | — | — | — | — |
2) Sanjay Bembalkar
Education: Mr. Bembalkar has done B.Com, M.Sc. (Accounting and Finance), ACA, CFA Charterholder.
Experience: Prior to joining Union Mutual Fund, he has worked with Canara Robeco Asset Management Company Ltd, LIC Mutual Fund, Quantum Advisors Pvt. Ltd and Autonomous Research LLP
Past Performance of his Schemes
Fund | Union ELSS Tax Saver Fund | It’s Benchmark | Union Largecap Fund | It’s Benchmark |
1 Year | 32.00 | 34.06 | 27.23 | 27.70 |
3 Year | 20.20 | 20.17 | 15.77 | 17.53 |
5 Year | 18.98 | 18.32 | 15.20 | 16.65 |
7 Year | 15.23 | 16.29 | — | — |
10 Year | 14.90 | 16.82 | — | — |
Which Company Owns Union Business Cycle Fund?
Union Asset Management Company Pvt. Ltd.
Address: Unit 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East) Mumbai – 400059
Website: https://www.unionmf.com
Registrar & Transfer Agent:
Computer Age Management Services Ltd.
Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Website: www.camsonline.com
Is it good to invest in Union Business Cycle Fund NFO?
Guidance for Union Business Cycle Fund by Paresh Gordhandas, C.A., Research Analyst.
The Union Business Cycle Fund is based on the Nifty 500 Index. The Nifty 500 index represents top 500 companies selected based on full market capitalization from the eligible universe. The Index comprises of companies like HDFC Bank, ICICI Bank, Reliance Industries, ITC, Bharti Airtel, L&T etc.
The object of the Fund is to focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles in the economy. Hence, in such a scenario, stock picking becomes very important. And as with all mutual funds, investors expect to earn more than the benchmark returns since their funds are being handled by professionals.
The fund is being managed by two Fund Managers- Hardick Bora and Sanjay Bembalkar. A sample study of other funds managed by them , that their performance is a mixed bag.
This fund can be compared to the ICICI Prudential Business Cycle Fund, Tata Business Cycle Fund and HSBC Business Cycle Fund. HSBC Business Cycles Fund, the oldest scheme in the category, offered around 16.84% in one year. The category gave an average return of 11.76% in this year till date.
We believe that Investing in a flexi cap fund will give better returns.
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