Investment Objective and Approach

The scheme seeks to generate regular income through investment in a portfolio comprising of money market instruments. Union Money Market Fund focuses on maintaining liquidity while providing stable returns through strategic deployment in short-term debt securities.

The fund follows a conservative investment approach, targeting money market instruments with high credit quality and shorter maturity periods. This strategy aims to minimize credit risk while ensuring adequate liquidity for investors who may need quick access to their funds.

Key Fund Statistics (as of latest available data):

- AUM: ₹193.27 Cr

- Expense Ratio: 0.19% (Direct Plan)

- Launch Date: August 24, 2021

- CAGR since inception: 6.18%

- Minimum SIP: ₹500, Minimum Lumpsum: ₹5,000

Fund Managers

The fund is co-managed by Mr. Parijat Agrawal and Mr. Devesh Thacker since inception of the fund.

Mr. Parijat Agrawal - Head of Fixed Income at Union Asset Management Company Private Limited

- Educational Qualification: B.E. (Electronics & Communications), PGDM from IIM Bangalore

- Professional Experience: Over 25 years with previous roles at SBI Mutual Fund as Head - Fixed Income, State Bank of Mauritius Limited managing Treasury functions, and SUN F&C Asset Management as Fund Manager for Fixed Income and Hybrid Funds

- Currently manages funds with total AUM of ₹7,681.70 Cr with 17 years of experience

Mr. Devesh Thacker

- Educational Qualification: B.Com. and MBA (Finance)

- Professional Experience: Over 22 years in the financial services sector, previously worked with Sahara Asset Management Co. Pvt. Ltd

- Has worked with several major fund houses including ICICI Bank Limited and was Fund Manager for Fixed Income Funds at Sahara Asset Management Co. Pvt. Ltd

- Currently manages funds with total AUM of ₹6,275.61 Cr with 13 years of experience

About the Fund House (AMC)

Union Asset Management Company Private Limited, operating as Union Mutual Fund, is the investment arm of Union Bank of India and has been a significant player in India's asset management sector for over a decade. Established in December 2009, the AMC aimed to build a robust asset management portfolio in India.

Key Milestones:

- Initially operated in collaboration with KBC Asset Management NV, a Belgium-based AMC, under the name Union KBC Mutual Fund, where Union Bank maintained the majority stake of 51%, with KBC holding a 49% share

- The partnership concluded in 2016 as KBC withdrew from the agreement, leading to Union Bank of India acquiring their shares, thus making Union Mutual Fund its wholly-owned subsidiary

- In 2017, Dai-ichi Life, a prominent Japanese financial services company, acquired a 39.62% stake in the AMC

Current Position:

- Union Mutual Fund AMC was incorporated on 30, Dec 2009, and has an AUM size of Rs. 20,144 Cr as on 31, Dec 2024

- Union Mutual Fund has total of 59 schemes

- Vision: To be the most reliable and trusted partner to our investors and distributors through responsible investing

Should I Invest in Union Money Market Fund?

Union Money Market Fund can be suitable for investors seeking:

Ideal For:

- Conservative investors looking for stable returns with minimal risk

- Those requiring high liquidity and quick access to funds

- Investors wanting to park surplus cash for short to medium-term periods

- Portfolio diversification with debt allocation

Investment Considerations:

- Low Risk Profile: Money market funds typically carry lower risk compared to equity funds

- Competitive Expense Ratio: At 0.19%, the fund maintains a reasonable cost structure

- Experienced Management: Co-managed by seasoned professionals with extensive fixed income expertise

- Adequate AUM: With ₹193.27 Cr AUM, the fund has sufficient scale for efficient management

- Steady Performance: The fund has delivered consistent returns since inception

Risk Factors:

- Interest rate risk may impact returns during volatile market conditions

- Credit risk from underlying securities, though minimal in money market instruments

- Inflation risk may erode real returns during high inflation periods

The fund is best suited for risk-averse investors prioritizing capital preservation over high returns. It serves as an excellent cash management tool and can form part of the debt allocation in a diversified portfolio.

FAQs

What is today's NAV of Union Money Market Fund?

The NAV changes daily based on market conditions. You can check the latest NAV on Allvest platform or the official Union Mutual Fund website for real-time updates.

What is the AUM of Union Money Market Fund?

The AUM of Union Money Market Fund is ₹193.27 Cr as per the latest available data.

What is the expense ratio of Union Money Market Fund?

The expense ratio of Union Money Market Fund is 0.19% for the Direct Plan, making it cost-effective for investors.

What are the returns of Union Money Market Fund since inception?

The fund has delivered a CAGR of 6.18% since inception from its launch date of August 24, 2021.

What is the minimum SIP amount to invest in Union Money Market Fund?

The minimum SIP amount of Union Money Market Fund is ₹500, making it accessible for small investors.

How do I invest in Union Money Market Fund?

You can invest in Union Money Market Fund through Allvest platform online, or visit any Union Bank branch. Complete your KYC, choose between Direct or Regular plan, and start investing.

How to start a SIP in Union Money Market Fund?

Log into your Allvest account, search for Union Money Market Fund, select SIP option, choose amount (minimum ₹500), frequency, and set up auto-debit mandate for seamless investments.

How do I automate an SIP in Union Money Market Fund?

After starting SIP on Allvest, set up auto-debit mandate through your bank. This ensures automatic monthly deductions without manual intervention for hassle-free investing.

How can I withdraw/redeem my investment in Union Money Market Fund?

You can redeem your investment through Allvest platform online or submit redemption request at Union Bank branches. Redemption proceeds are typically credited within 1-3 working days for money market funds.