Guwahati: Union Asset Management Company today inaugurated its first branch in the North East at Ganpati Enclave, Opp. Bora Service in Guwahati in the presence of Mr. Saurabh Jain, Chief Marketing Officer, Naveen Sharma, Regional Head of Sales - East, and Neepjyoti Saikia, Branch Head.

Co-sponsored by Union Bank of India (UBI)and Dai-ichi Life Holdings, Inc. Union Bank of India, Union Asset Mangament Company is one of the leading public sector banks in India and is headquartered in Mumbai. Union Mutual Fund commenced its operations in 2011. 

Union AMC, which has its first centre in Guwahati, has also started a new fund called the Union Multicap Fund in an effort to better serve investors in Assam and other North Eastern states by establishing themselves in the region's market.

Union Multicap Fund is an open-ended equity strategy that seeks to offer capital appreciation via disciplined investment in equities and equity-related securities across market capitalization. The Scheme aims to gain from larger growth potential provided by mid and small caps as well as less volatility through large caps.

Speaking at the event, Mr. G. Pradeep Kumar, CEO of Union AMC, stated, "We think that discipline is vital to accomplishing more, especially when it comes to investing, and with Union Multicap Fund, our new fund product, we hope to bring capital appreciation over the long term. Empirical evidence indicates that various market capitalization perform differently across different time periods, making it difficult to predict which section will thrive and which would underperform.

Union Multicap Fund, aims to enable investors to navigate across market caps and offer true diversification.

In a statement, Mr. Saurabh Jain, Chief Marketing Officer (CMO) of Union AMC, stated, "We are delighted to inaugurate our new office in Guwahati and to announce the launch of our new scheme, Union Multicap Fund.

He continues by saying that in a period of ten years, the Indian mutual fund industry has increased by more than five times, from 7.68 trillion as of October 31, 2012, to 39.50 trillion as of October 31, 2022. In a short period of time, we should also increase five times.

He continues by saying that the mutual fund industry in the NorthEast has a lot of untapped potential. People in this country are still less aware of its benefits and drawbacks, thus they haven't looked into the chances in this industry. However, both institutional and retail clients have the potential to be lucrative, therefore they are aiming for long-term success in their relationship with the NE region.

In light of the current situation, Jain predicts that India's economy will grow quickly and be sizable.

Assam's mutual fund business has average assets under management (AAUM) of 20,600 crores, or 6% of its GDP (AMFI data as of October 2022). Our decision to create a branch in Guwahati is our first move in that regard since, according to Jain, we feel there is a significant chance to increase the North East's mutual fund penetration.

A mix of top-down and bottom-up approaches will be used by the new fund, Union Multicap Fund, to find opportunities in the big, mid, and small cap markets. The benchmark for the Scheme will be NIFTY 500 Multicap 50:25:25 TRI#. The "Fair Value" technique will be used to choose the stocks.

Speaking about their recently launched offer, Union AMC CMO reveals that a minimum investment of Rs. 1,000 is required, with further investments in multiples of Rs. 1 thereafter. Union Multicap Fund will adhere to a disciplined approach to investing, allocating to stocks across capitalization (Large cap, Mid cap, and Small size), with a minimum allocation of 25% to each category. The remaining 25% might be allocated to equities across capitalization or in debt & money market instruments, etc. as indicated in the Scheme Information Document (SID) of the Scheme.

While speaking with Business-Northeast, the CMO and CEO of Union AMC stated that they will soon organise boot camps and mutual fund awareness programmes to provide the locals here an easier time getting started.
However, in order to gain a more in-depth understanding of the population and operate appropriately, they want to hire more localities in light of the NorthEast market's current situation.

The progression of this will be gradual, said the CEO. Taxation on mutual funds is quite little, hence expecting a strong hold in this region.

NOTE: The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made. The Benchmark riskometer is based on the evaluation of the portfolio data as of October 31 2022.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS.

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