AssetPlus NFO Review: Union Retirement Fund

by Maheswaran Hariharan

Union AMC has launched an NFO, which is now open for subscription from September 1st, 2022, and closes on September 15th, 2022.

Investment Objective: To generate wealth over the long term, suitable for investors having a moderate risk appetite who are comfortable with volatility in the medium term.

Fund Manager: Vinay Paharia and Sanjay Bembalkar

Benchmark: S&P BSE 500 TRI

Features of Union Retirement Fund:

  1. Mandatory Lock in 5 years or till retirement age(60), whichever is earlier.
  2. More than 65% of the fund's investments will be in Equity.
  3. Moderate to Aggressive style of investing to combat and beat inflation.
  4. A targeted investment approach to build a separate corpus for retirement.
  5. No TDS, taxed based on Long Term Capital Gains on Equity.

Suitability of Union Retirement Fund:

  1. Investors with moderate risk appetite and balanced levels of risk capacity.
  2. Purely for the long term with no intermittent or immediate requirements.
  3. Goal of having a vital source of income after retirement.
  4. Committing investments towards retirement with no mixing of other goals.
  5. Capital Appreciation approach makes it favorable to build a healthy sum over a longer time frame.
  6. To maintain or improve the standard of living post-retirement.

Retirement Funds are an interesting breed of equity mutual funds. It has a mandatory lock-in period to ensure investors do not lose track of their primary goal. However, at the same time, it serves the purpose of wealth accumulation by compounding over a longer time frame.

It is of utmost importance to read the scheme documents fully before investing. Get in touch with your financial expert to know more!