The scheme is ideally suitable for investors looking for low volatile, inflation-beating returns over an investment horizon of two years or more.
The new fund offer opens on March 3 and closes on March 7. The scheme will reopen for subscriptions on March 21.
The fund management team has complete discretion to allocate 0% to 100% across various segments of debt and equity in any proportion. The flexibility shall be used consciously to limit downside across economic cycles while striving to achieve consistent real returns over inflation,” said V.N. Saravanan, Chief Investment Officer, in a release.
According to Unifi Mutual, the fund’s agility to shift among various segments of debt and equity provides investors the option to stay passive and not be hassled about moving categories when economic cycle changes. The near to mid-term outlook on growth-inflation would influence the fund’s allocation among chosen segments of debt and equity, it says.
“ Broadly, there could be 4 cycles – Rising Growth-Falling Inflation; Rising Growth-Rising
Inflation; Falling Growth-Rising Inflation; Falling Growth-Falling Inflation. The empirically low
volatile segments like Government securities, AAA bonds, hedged equity and special situations arbitrage would have a fair chunk of allocation in all economic cycles. The segments like credits and diversified equity will be opportunistically considered when the economic outlook indicates rising growth and reduced when the growth projection suggests weakness. The traditional options don’t seem to deliver this proposition, pushing investors to allocate to segments that are more risky or illiquid,” the release quoted Mr. Saravanan as saying.
Unifi Asset Management Pvt. Ltd., a wholly-owned subsidiary of Unifi Capital (one of India’s largest portfolio managers), received a SEBI (Securities and Exchange Board of India) licence in November 2024 to commence its mutual fund operations. Unifi Mutual Fund is headquartered in Chennai.
