Union Asset Management Company is launching Union Corporate Bond Fund, an open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. The New Fund Offer will be open from May 4 to May 18. The scheme re-opens on June 1 for continuous subscription and redemption. According to the scheme information document, the new scheme will be a low risk scheme, where income will be generated through interest accrual and capital appreciation by investing in fixed income securities of varying maturities. "Over a medium to long term period, the scheme is more tax efficient as compared to most traditional investments offering fixed rate of interest. Further, the scheme may be lower on volatility and risk parameters as compared to other asset classes," the AMC said in a press release. Investments in debt mutual fund schemes when held for more than three years are eligible for Long Term Capital Gain (LTCG) tax with indexation benefit, making the post-tax returns on debt … [Read more...] about Union Mutual Fund launches Union Corporate Bond Fund
Doubleline total return bond fund fact sheet
Liquidity is oxygen for a financial system. While the system was gasping for breath around this time last year, today there appears to be too much of it. But before we delve deeper into this, it’s time to go into some of the basics. In a monetary system, the only entity that can create or destroy money (liquidity) is the central bank. And this money grows within the financial system through the money multiplier effect. Economists call the former ‘narrow’ money and the latter ‘broad’ money. All financial instruments used for transacting by any ‘user’ of the financial system, including banks, corporations, governments and individuals alike, are linked to this money creation process. It is no wonder then that the central bank can influence the money creation process through intervention. This intervention happens through expansion and contraction of the central bank’s balance sheet. So what role does the monetary policy ‘rate’ … [Read more...] about Fairy tale of banking liquidity: Why debt funds are your best bet now
PBOC should give 'ammunition' to support government investment China should put a new mechanism in place to allow the central bank to buy bonds issued by the government to supply more funds to boost growth, according to a group of researchers from a leading national think tank on Wednesday. Traditional monetary policy, even coordinated with fiscal expansion, may be not strong enough to reverse the economic slowdown. The central bank should provide "ample ammunition" to support government investment, said Li Yang, head of the National Institution for Finance and Development (NIFD) under the Chinese Academy of Social Sciences. The urgency is on the rise, requiring a new mechanism under which the central bank can directly purchase bonds issued by the central government, and the government should tolerate a higher leverage level along with an expanding deficit, according to a research from the think tank. "We should be aware that the monetary policy cannot solve all the problems, when an … [Read more...] about Experts call for funds to boost growth
Union Asset Management Company launches Union Equity Savings Fund, an open-ended scheme investing in equity, arbitrage and debt. The Scheme’s investment objective is to seek capital appreciation to generate consistent returns by actively investing in a combination of diversified equity and equity related instruments, arbitrage and derivative strategies and exposure in debt and money market instruments. The New Fund Offer will open from July 19 and will close on July 30th. The Scheme will be managed by Mr Vinay Paharia, Chief Investment Officer of Union AMC. The scheme is benchmarked against the CRISIL Short Term Debt Hybrid 75+25 Fund Index. It would invest across Large Cap, Mid Cap and Small Cap Stocks. Portfolio of stocks will be selected on a bottom-up basis. The Scheme endeavors to increase equity allocation when markets go down and to decrease equity allocation when markets go up. “Union Equity Savings Fund is ideal for investors who are looking for dual benefits … [Read more...] about Union Mutual Fund launches Union Equity Savings Fund
Children's education follows retirement very closely in every financial plan. Blame it on traditional Indian mindset: child's higher education and marriage tops the list of long-term financial goals for many individuals. Sensing an opportunity, mutual fund houses have launched dedicated children's plans to help parents to realise their dreams for their children. But do you really need them to plan for your child's education and marriage? Mutual fund advisors don't think so. They concede that children-specific mutual funds are a good bet, but they say there are better options available for parents to plan for their children's future. “Child plans provided by mutual funds are generally hybrid schemes. The risk factor varies in different schemes, though. There is a lock-in period which is really helpful for new investors. But, if you have the awareness and have the ability to stand market volatility, betting on a pure equity fund for a long period is a much better option,” … [Read more...] about Do you need dedicated children’s mutual funds to plan your child’s future?