Mumbai, 26 June, 2025: 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.
The New Fund Offer (NFO) opens on June 26, 2025, and closes on July 10, 2025. The scheme aims to provide an option for investors seeking active management, liquidity, and potential for better risk-adjusted returns.
The scheme aims to invest in a combination of debt and money market instruments, maintaining a Macaulay Duration between 6 to 12 months. This could be a suitable choice for those looking to park funds for the short term.
Interest rate movements in a highly dynamic environment opens possibilities across investment time horizons. The Union Low Duration Fund is suitable for diligent investors from retail to institutional investors who are desirous of income generation over shorter duration between 3 to 12 months.
“This scheme is not about chasing higher yields it’s about offering structure, timing, and a role for your short-term money,” said Madhu Nair, CEO, Union Asset Management Company Pvt Ltd. “In a landscape shaped by evolving interest rates and surplus liquidity, we’re offering a pragmatic investment plan for idle money with potential upside.”
The launch aligns with Union AMC’s outlook that short-duration instruments are favourably positioned amid ongoing monetary transmission and attractive short-end spreads.
Parijat Agrawal, Head of Fixed Income at Union AMC, added: “We’re closely monitoring liquidity conditions, curve movements, and broader macro trends. A low duration strategy gives us the agility to respond swiftly, making this scheme particularly timely and relevant.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.
Disclaimer:
The information in this document alone is not sufficient and should not be used for the development or implementation of an investment strategy. Neither the Sponsors/the AMC/ the Trustee Company/ their associates/ any person connected with it, accepts any liability arising from the use of this information. While utmost care has been exercised while preparing this document, the Sponsors/ the AMC/ the Trustee Company/ their associates/ any person connected with it, do not warrant the completeness or accuracy of the information and disclaim all liabilities, losses and damages arising out of the use of this information. The recipients of this material should rely on their investigations and take their own professional advice. Past performance well may or may not be sustained in future.
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