Thursday, Apr 25 2024 | Time 09:14 Hrs(IST)
image
Business EconomyPosted at: Jul 18 2022 4:26PM


Union AMC launches Union Gilt Fund

Chennai, July 18n (UNI) Union Asset Management Company Private Limited, (Union AMC),
part of Union Bank, today announced the launch of Union Gilt Fund, an open-ended debt
scheme investing a minimum of 80% of its total assets in government securities (across
maturities).
Gilt funds are debt mutual funds that invest in government securities. Gilt mutual funds are
an excellent replacement for bank FDs, according to a press release.
They are safer and offer much higher returns than bank FDs. The New Fund Offer (NFO)
of Union Gilt Fund opened today and will close on August one. The minimum investment
required is Rs.1,000 and in multiples of Rs.1 thereafter.

Since the funds invest in sovereign securities, there is no credit risk.
Post the recent rise in interest rates, yields in the 4-5 bucket are very attractive from a
risk-return basis and are better than current FD rates.
Investment for a 3-year time horizon shall provide better risk-adjusted returns to the investor.
Gilt mutual funds invest in government ‘debt’ and hence benefit from lower debt taxation. If
the investment is held for more than 3 years, an indexation taxation benefit is available. This
is not possible in the case of fixed deposits.
Since the fund is open-ended, an investor can easily redeem money anytime during the year.
This may not be possible for bank fixed deposits where they may be a fixed lock-in or premature withdrawal penalty. Also, the fund will invest in government securities that are highly liquid.
Union AMC CEO G.Pradeepkumar said “the launch of Union Gilt Fund is in line with our constant endeavor to offer products that help our investors in wealth creation. We believe this scheme will serve investors who are looking for credit risk free returns over a period of three years or more."
"With the introduction of this scheme, our debt product basket now offers schemes with varied
credit and duration risk”, he said.
UNI GV 1625
Please log in to get detailed story.
Tags: #Union AMC launches Union Gilt Fund
More News

NSE launches derivatives on Nifty Next 50 Index

24 Apr 2024 | 9:16 PM

Mumbai, Apr 24 (UNI) National Stock Exchange of India Ltd (NSE), the world’s largest derivatives exchange for consecutive fifth year in a row in the year 2023 based on contracts traded as published by FIA, launched futures and options contracts on the Nifty Next 50 Index on Wednesday.

see more..

KABIL signs MoU with CSIR-NGRI for geophysical investigations

24 Apr 2024 | 7:47 PM

Bhubaneswar, April 24 (UNI) Khanij Bidesh India Limited (KABIL) has signed a Memorandum of Understanding (MoU) with the Council of Scientific and Industrial Research - National Geophysical Research Institute (CSIR-NGRI) to foster a long-term collaboration in the field of geophysical investigations to bolster its ongoing projects and activities in critical and strategic minerals.

see more..

Dish TV revolutionises entertainment with ‘Dish TV Smart+’ services

24 Apr 2024 | 7:31 PM

Kolkata, Apr 24 (UNI) Dish TV has taken a path-breaking initiative to redefine the entertainment experience in India.

see more..

TRAI recommends sharing of active, passive infra by telecom providers

24 Apr 2024 | 7:03 PM

New Delhi, April 24 (UNI) With a view to improve quality of services and reducing cost, the telecom regulator TRAI on Wednesday recommended sharing of active and passive infrastructure among telecom service providers, a move that would help setting up network quickly across the nation.

see more..

REC to provide loan of Rs 1869 cr to Chenab Valley Power Project in J&K

24 Apr 2024 | 6:38 PM

New Delhi, April 24 (UNI) State-owned non-banking finance company REC Limited has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL), under which it will provide financial assistance of Rs 1,869.265 crore as a term loan.

see more..
image