Mumbai: Union Mutual Fund has announced the launch of the Union Low Duration Fund, the scheme designed for investors looking to optimise their idle money for short term i.e.3 to 12-month investment horizon.
The New Fund Offer (NFO) opens on June 26, 2025, and closes on July 10, 2025. The scheme aims to provide an option for investors seeking active management, liquidity, and potential for better risk-adjusted returns.
The scheme aims to invest in a combination of debt and money market instruments, maintaining a Macaulay Duration between 6 to 12 months. This could be a suitable choice for those looking to park funds for the short term.
Interest rate movements in a highly dynamic environment opens possibilities across investment time horizons. The Union Low Duration Fund is suitable for diligent investors from retail to institutional investors who are desirous of income generation over shorter duration between 3 to 12 months.
“This scheme is not about chasing higher yields it’s about offering structure, timing, and a role for your short-term money,” said Madhu Nair, CEO, Union Asset Management Company Pvt Ltd. “In a landscape shaped by evolving interest rates and surplus liquidity, we’re offering a pragmatic investment plan for idle money with potential upside.”
The launch aligns with Union AMC’s outlook that short-duration instruments are favourably positioned amid ongoing monetary transmission and attractive short-end spreads.