Union Diversified Equity All Cap Active FOF NFO Launches on September 1, 2025: A Dynamic Route to Multi-Cap Equity Growth

The Union Diversified Equity All Cap Active FOF is an upcoming equity-oriented fund of funds designed to provide investors with diversified exposure across large-cap, mid-cap, and small-cap companies. The scheme intends to allocate its corpus into actively managed equity funds, enabling investors to benefit from professional expertise and market opportunities across different sectors and capitalisations. By following an all-cap active strategy, the NFO aims to capture growth potential while balancing risks through broad diversification. The product is structured to appeal to investors seeking long-term capital appreciation with a manageable investment entry point and offers flexibility through its open-ended format, subject to applicable loads and conditions.

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Key Features of Union Diversified Equity All Cap Active FOF

• Opening Date: Sep 01, 2025
• Closing Date: Sep 15, 2025
• Exit Load: Nil, as per scheme details, typically levied if redeemed within a short holding period
• Minimum Investment Amount: ₹1,000

Objective of Union Diversified Equity All Cap Active FOF

The primary objective of the Union Diversified Equity All Cap Active FOF - Direct (G) is to achieve long-term capital growth by investing predominantly in a portfolio of equity mutual funds spread across large, mid, and small-cap categories. This diversified approach seeks to harness growth opportunities while managing risks through allocation across market segments.

Investment Strategy of Union Diversified Equity All Cap Active FOF

• The Union Diversified Equity All Cap Active FOF - Direct (G) will follow a fund of funds structure, investing in actively managed equity schemes.
• The portfolio will span large-cap, mid-cap, and small-cap categories, offering broad exposure.
• It will actively allocate between segments depending on market cycles and opportunities.
• The approach aims to blend stability from large caps with higher growth potential from mid and small caps.
• Regular monitoring and dynamic allocation will ensure the portfolio remains aligned with the scheme’s objectives.

Risks Associated with Union Diversified Equity All Cap Active FOF

• Market Risk: Investments in equity funds are subject to stock market fluctuations and volatility.
• Concentration Risk: Overexposure to a sector or capitalisation category may affect returns.
• Liquidity Risk: Certain underlying funds may face challenges in liquidating assets quickly.
• Fund Manager Risk: Returns depend on the effectiveness of fund manager decisions across chosen equity funds.
• Macroeconomic Risk: Factors such as inflation, policy changes, or global events could affect portfolio performance.

Risk Mitigation Strategy by Union Diversified Equity All Cap Active FOF - Dir (G)

The Union Diversified Equity All Cap Active FOF - Direct (G) employs a multi-cap allocation strategy to reduce concentration risks by investing across various equity categories. By spreading exposure to large, mid, and small caps, the scheme ensures diversification that can cushion against volatility in any single segment. Active fund selection, continuous monitoring of underlying schemes, and dynamic rebalancing are integral to risk management. This approach aims to smooth return profiles over time and provide investors with consistent long-term wealth creation potential, even during uncertain market cycles.

What Type of Investor Should Invest in Union Diversified Equity All Cap Active FOF?

• Investors seeking long-term capital growth through equity exposure.
• Those preferring diversified allocation across large, mid, and small caps without managing individual funds.
• Investors are comfortable with moderate to high risk in pursuit of higher potential returns.

Where Will the Union Diversified Equity All Cap Active FOF Invest?

• In a mix of actively managed equity mutual funds across different market capitalisations.
• Exposure across large-cap, mid-cap, and small-cap equity funds.
• Dynamic allocation in equity segments to balance growth and stability.