Investment Objective and Approach

Union Short Duration Fund is an actively managed debt scheme with an investment objective to provide reasonable returns and liquidity by investing in a range of debt and money market instruments while maintaining the balance of safety, liquidity and returns. This open-ended short-term debt scheme invests in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years.

Key features of the investment approach:

- High interest rate risk and moderate credit risk

- Suitable for investors seeking short term income generation and capital appreciation solution

- Aims to generate income by investing in a range of debt and money market instruments of various maturities

- Active portfolio management to optimize risk-return balance

- Focus on maintaining liquidity while generating reasonable returns

Fund Managers

Anindya Sarkar is the current Fund Manager of Union Short Duration Fund. Mr. Sarkar holds a BE Civil, MBA (Finance), MBA (Risk & Insurance), and is an FRM. Prior to joining Union Asset Management Company Private Limited, he has worked with Sarcon Blockbuild Ltd, Navigators Inc., and ICAP India Private Limited.

Mr. Shrenuj Parekh serves as Co-Fund Manager, bringing additional expertise to the fund's management team. Mr. Parekh has done B.Com and CA, complementing the team's financial expertise.

Both fund managers bring extensive experience in fixed income management at Union Asset Management Company Private Limited.

About the Fund House (AMC)

Union Mutual Fund, the investment wing of Union Bank of India, is one of the key drivers of the asset management sector in India for over a decade. The vision of the company is to provide opportunities to investors so that they can achieve sustainable prosperity by investing responsibly in the capital markets.

Key milestones and facts:

- The AMC was set up on December 30, 2009, with the aim to formulate a robust asset management portfolio in India

- 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

- The AMC was initially set up in collaboration with KBC Asset Management NV, a Belgium-based AMC. It was initially known as Union KBC Mutual Fund

- The partnership ended in 2016 when KBC pulled out and Union Bank purchased their shares. Currently, Union Mutual Fund is jointly sponsored by the Union Bank of India and Dai-ichi Life

The backing of Union Bank of India, which will complete a hundred years of existence in 2019 and was inaugurated by Mahatma Gandhi on November 11, 1919, provides strong institutional support to the mutual fund operations.

Should I Invest in Union Short Duration Fund?

Union Short Duration Fund can be suitable for specific investor profiles and market conditions:

Consider investing if you are:

- Looking for short-term income generation with moderate risk

- Seeking an alternative to traditional fixed deposits with potentially higher returns

- Planning investments with a 1-3 year horizon

- Comfortable with moderate credit risk and high interest rate risk

- Wanting professional debt portfolio management

Key considerations:

- The fund currently has an AUM of ₹579.25 Cr and latest NAV of ₹10.00 as of 15 Jan 2025

- Expense ratio of 0.73%

- Minimum SIP investment of ₹500 and minimum lumpsum investment of ₹1,000

- Exit load of 1% if redeemed within 15 days

- Returns are taxed as per your Income Tax slab

Investor suitability:

This fund is ideal for conservative to moderate investors seeking better returns than savings accounts while maintaining relatively lower risk compared to equity investments. The short duration strategy helps manage interest rate volatility while targeting reasonable returns.

FAQs

What is today's NAV of Union Short Duration Fund?

The latest NAV of Union Short Duration Fund is ₹10.00 as of 15 Jan 2025. NAV is updated daily after market hours.

What is the AUM of Union Short Duration Fund?

The fund currently has an Asset Under Management (AUM) of ₹579.25 Cr as of 15 Jan 2025.

What is the expense ratio of Union Short Duration Fund?

The expense ratio of Union Short Duration Fund is 0.73%, which covers fund management and operational expenses.

What are the returns of Union Short Duration Fund since inception?

The scheme was made available to investors on 30 Dec 2009. Being a recently launched fund, specific return data since inception is limited due to its short track record.

What is the minimum SIP amount to invest in Union Short Duration Fund?

The minimum SIP investment is set to ₹500 per month, making it accessible for regular investors.

How do I invest in Union Short Duration Fund?

You can invest in Union Short Duration Fund through Allvest's platform by completing KYC, selecting the fund, choosing investment amount, and making payment online.

How to start a SIP in Union Short Duration Fund?

To start a SIP, register on Allvest, complete KYC verification, select Union Short Duration Fund, choose SIP amount (minimum ₹500), set frequency, and authorize the payment mandate.

How do I automate an SIP in Union Short Duration Fund?

Set up an auto-debit mandate with Allvest during SIP registration. This will automatically deduct the SIP amount from your bank account on chosen dates without manual intervention.

How can I withdraw/redeem my investment in Union Short Duration Fund?

You can redeem your investment through Allvest's platform anytime. Note that there's a 1% exit load if redeemed within 15 days of investment.