Union KBC Trigger Fund – Series 1 has achieved the Trigger Target

India Infoline News Service | Mumbai |

Union KBC Mutual Fund equity scheme profit booking to enable the investors to realize their profits and enjoy benefits of appreciation of the investments.

Union KBC Mutual Fund is delighted to inform you that Union KBC Trigger Fund – Series 1 has achieved the Trigger target of the NAV of the Direct Plan of the scheme crossing Rs. 13 (i.e. a 30% appreciation in Net Asset Value (NAV) of the Direct Plan of the scheme since the date of allotment) on 7th July 2014.

Union KBC Mutual Fund launched Union KBC Trigger Fund - Series 1, a close- ended equity scheme with a feature of inbuilt profit booking, to enable the investors to realize their profits at a pre-defined level and enjoy benefits of appreciation of the investments. The scheme had an inbuilt feature of winding up on completion of 3 years from the Date of Allotment or the 10th business day from the NAV of the Direct Plan of the Scheme crossing Rs.13/- per unit, whichever is earlier. Redemption proceeds would be remitted to the investors at the applicable NAV of the maturity date which is 21st July. The New Fund Offer (NFO) of the Scheme was from 14 October 2013 to 25 October 2013.

G. Pradeepkumar, Chief Executive Officer, Union KBC Asset Management Company Private Limited, said “It was only about eight months ago that we launched this investor centric innovative Equity Fund. It was the first of its kind close ended Equity Scheme in the Indian mutual fund market, which would compulsorily be wound up once the direct plan of the Scheme achieved 30% absolute appreciation or completed 3 years from the date of allotment, whichever came earlier.”

He also mentioned that “the objective of designing this scheme with an automatic trigger mechanism was to ensure that our valued investors were able to realize the gains from their investment in equity mutual funds and have a very positive experience with mutual funds. Two important factors that reinforced our confidence about the fund were the strong back testing results and our expectation that the General Elections would prove to be a game changing event for the equity markets.”

The fund portfolio was actively managed and invested in companies forming a part of S&P BSE 200 Index. The portfolio was constructed with a good balance of aggressive and defensive sectors. The Fund was largely overweight in sectors like Pharmaceuticals, Software and Construction Projects and maintained underweight position in sectors like Automobiles, Cements, Ferrous Metals and Industrial Capital Goods during the tenure. The overweight and underweight positions are with respect to the Scheme benchmark. The fund also made tactical overweight/underweight allocations to sectors such as Banks, Chemicals, Non-Ferrous Metals, Power, Finance and Auto Ancillary sectors, to name a few. On an average the portfolio contained about 32 stocks.
 

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