Union MF Launches New Equity Fund of Funds

Union Mutual Fund on Monday launched a new fund of funds (FOF) scheme that will allocate dynamically across its large-, mid- and small-cap equity funds, aiming to simplify investment decisions for retail investors.

The new fund offer will close for subscription on Sept 15, 2025.

The Union Diversified Equity All Cap Active FOF seeks to address challenges of market timing, allocation and tax implications, the company said in a statement.

The allocation strategy is based on “Anchor–Explorer” model, blending long-term strategic views with short-term market opportunities, said Harshad Patwardhan, the firm’s chief investment officer.

The allocation model is as follows:

1. Anchor Fundswill represent a

medium-to-long-term strategic view of the market.

2. Explorer Funds will be dynamically selected to reflect short-to-medium-term market opportunities.

“Mutual fund penetration is growing, but to deepen it further, we need to offer simple, all-weather equity products that may help investors’ decision-making easier,” said Madhu Nair, chief executive officer of Union Asset Management Company.

India’s mutual fund penetration is about 8%, compared with 15–20% in China and up to 60% in Japan, according to business magazine

Fortune India. The new fund represents an opportunity for new investors to enter the mutual fund market.

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