The Union Bank of India, which is a government PSU bank and the KBC Asset Management Company based in Belgium, have come together to launch the Union KBC Equity Fund. This appears to be the first Mutual Fund by the Union Bank of India and it is offered as a joint proposition along with the local arm of a foreign based Asset Management firm named as KBC Asset Management.
In this article, we will analyze how good is this Union KBC Equity Fund NFO, whether this Union KBC Equity Fund offers anything new or unique for the investors and whether the investors should invest in Union KBC Equity Fund.
Union KBC Equity Fund NFO: Review Analysis & Details
Let's begin with some basic details about Union KBC Equity Fund.What are the NFO dates for Union KBC Equity Fund?
The NFO period for Union KBC Equity Fund is from 20 May 2011 and will close on 03 June 2011. Scheme reopens on 17th June 2011 for normal trading.
What is so unique about this Union KBC Equity Fund?
There is nothing unique about this Union KBC Equity Fund which can set it apart from the rest of the common Equity based mutual funds - it is just another mutual fund which will collect money from investors, pool it together and invest in securities as decided by the Fund Managers of Union KBC Equity Fund. The only thing is that this is the first offering from the Union Bank of India in the mutual fund space, so it will be interesting to observe how the fund managers of this bank will perform with their mutual funds in the mutual fund market.
The asset allocation will be as follows:
75% to 100% will be in Indian equities
Rest 25% will be in debt and money market instruments.
What are the other competitor products available in comparison to Union KBC Equity Fund?
Since this is just another mutual funds, there are lots of other funds available in the market which are similar to this Union KBC Equity Fund. The Union KBC Equity Fund will track the benchmark BSE 100 index for tracking its performance.
What are the risks of investing and trading Union KBC Equity Fund?
All the usual market risk and similar stuff as common to all mutual funds. This Union KBC Equity Fund will also have its performance dependent on the stock selection of the mutual fund managers.
Final Thoughts about Union KBC Equity Fund?
Nothing specific or unique about this Union KBC Equity Fund - just that it is the first equity fund from the house of Union Bank of India which is being offered as a joint venture along with KBC Asset Management of Belgium. Investors who trust the find managers can take a shot at this fund.
See List of All Mutual Fund and NFO Articles here
During NFO period each unit cost Rs. 10 per unit during NFO period
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
Multiple options available for investments in Union KBC Equity Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
Union KBC Equity Fund Entry Load: Nil
Union KBC Equity Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan? Avaialble post NFO period.
No tax benefit will be available in Union KBC Equity Fund
BSE 100 Index will be the benchmark index for tracking the performance of Union KBC Equity Fund
Mr.Ashish Ranawade will be the fund manager for Union KBC Equity Fund
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