New NFO Alert: Unifi Liquid Fund - Direct (G) by Unifi Mutual Fund starting from 04 June

Unifi Liquid Fund - Direct (G) is a debt mutual fund, specifically a liquid fund, launched by Unifi Asset Management Private Limited. It offers a low-to-moderate risk profile and aims to provide high liquidity and reasonable returns by investing in money market instruments and debt instruments with maturities of up to 91 days. The fund's New Fund Offer (NFO) period is from June 4, 2025, to June 6, 2025. The minimum investment amount is ₹5,000, and it is available in a growth plan only. The fund manager for Unifi Liquid Fund - Direct (G) is Saravanan V N.

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Key Features of Unifi Liquid Fund - Direct (G)

• Fund Type: Liquid Fund (Debt)
• Investment Objective: Provide high liquidity and reasonable returns.
• Risk Profile: Low to Moderate.
• Investment Instruments: Money market instruments and debt instruments with maturities up to 91 days.
• Minimum Investment: ₹5,000.
• Plan Type: Growth plan only.
• Fund Manager: Saravanan V N.
• NFO Period: June 4, 2025 to June 6, 2025.
• Redemption: Unrestricted, subject to exit load during the initial 6 days.
• Benchmark: Nifty Liquid Index A-I (TRI)
   

Investment Strategy of Unifi Liquid Fund - Direct (G)

Unifi Liquid Fund – Direct (G) employs a conservative, research-driven investment strategy aimed at capital preservation and liquidity. The fund primarily invests in high-quality, short-term debt instruments, such as government securities and AAA-rated corporate papers, to minimize credit and interest rate risks. By focusing on instruments with shorter maturities, the fund reduces sensitivity to interest rate fluctuations, thereby maintaining stable returns. Active portfolio monitoring allows for timely adjustments in response to market conditions, ensuring optimal asset allocation. Additionally, the fund maintains a high level of liquidity to meet redemption requests promptly. This strategy is well-suited for risk-averse investors seeking a safe and liquid investment avenue for short-term financial goals.

Objective of Unifi Liquid Fund - Direct (G)

To invest in money market and debt instruments with maturities of up to 91 days with an objective to provide a high level of liquidity and reasonable returns. However, there is no assurance that the investment objective of the scheme will be achieved. The scheme does not guarantee or assure any returns.

Risks Associated with Unifi Liquid Fund - Direct (G)

Unifi Liquid Fund – Direct (G) is a low-duration debt fund designed for short-term investments. While generally considered low-risk, investors should be aware of the following potential risks:

• Credit Risk: If the fund holds securities from issuers with lower credit ratings, there's a possibility of default, which can lead to capital loss.
• Interest Rate Risk: Rising interest rates can reduce the value of underlying securities, potentially causing minor dips in the fund's Net Asset Value (NAV).
• Liquidity Risk: In stressed market conditions, the fund might face challenges in selling securities promptly, affecting its ability to meet redemption requests.
• Reinvestment Risk: Returns may decline if maturing instruments are reinvested at lower prevailing interest rates.
• Taxation: Gains are added to the investor's income and taxed according to their applicable slab rate, potentially reducing net returns.
   

Despite these risks, liquid funds like Unifi Liquid Fund – Direct (G) are generally safer than longer-duration debt or equity funds. However, they are not entirely risk-free. Investors should assess their risk tolerance and investment horizon before investing.

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Risk Mitigation Strategy by Unifi Liquid Fund - Direct (G)

Unifi Liquid Fund – Direct (G) mitigates risk through a conservative investment strategy focused on high-quality, short-term debt instruments. The fund primarily invests in securities with high credit ratings to minimize credit risk. It maintains high liquidity by choosing instruments with shorter maturities, reducing interest rate sensitivity. Active portfolio monitoring ensures timely adjustments in response to market conditions. The fund also adheres to regulatory limits on sector and issuer exposure to avoid concentration risk. These measures collectively aim to preserve capital while delivering stable, low-volatility returns, making it suitable for risk-averse, short-term investors.

What Type of Investor Should Invest in Unifi Liquid Fund - Direct (G)?

Unifi Liquid Fund – Direct (G) is best suited for the following types of investors:

• Conservative Investors Seeking Capital Preservation: Those who prioritize safety over high returns and want to park surplus funds with minimal risk exposure.
• Short-Term Investors: Ideal for individuals or businesses looking to invest idle funds for a few days to a few months while earning better returns than a savings account.
• First-Time Mutual Fund Investors: Those new to mutual funds who want a low-risk entry point to understand how mutual fund investing works.
• Investors Seeking Liquidity: Suitable for investors who may need quick access to their funds without worrying about high exit loads or volatility.
• Corporate or Institutional Investors: Entities looking to manage working capital efficiently while earning moderate returns with high liquidity.
   

In summary, it’s a smart choice for those who want low risk, steady returns, and quick access to their money.