Kolkata, 02 September, 2025: Union Mutual Fund announces the launch of its latest offering – the Union Diversified Equity All Cap Active FOF – designed to simplify equity investing by offering dynamic allocation across varied market capitalizations through a single fund.
Despite the surge in retail participation, equity penetration in India remains modest at around 8%, significantly lower than countries like China (15–20%), the U.S. (45–50%), and Japan (55–60%), as per a recent report by Fortune India, May 2025. While the mutual fund industry has witnessed exponential growth, the unique investor base stands at approximately 5.53 crore (Internal Research, June 2025), underscoring the need for more investor-friendly and simplified solutions.
For many new investors, choosing the right entry point and an appropriately diversified fund remains a key challenge. Union Mutual Fund aims to address this with a one-of-a-kind solution that dynamically allocates across schemes investing in large, mid, and small-cap of Union MF equity schemes –removing the complexity of timing, selection, and allocation.
“Mutual fund penetration is growing, but to deepen it further, we need to offer simple, all-weather equity products that may help investor’s decision-making easier,” said Mr. Madhu Nair, CEO, Union Asset Management Company Pvt Ltd. “Many investors struggle with market timing, deciding how much to allocate to each cap segment, and managing tax implications when switching between funds. This Fund of Fund aims to address all these pain points while still offering the tax benefits of an equity fund.”
The allocation strategy is based on a distinctive Anchor–Explorer framework adopted by Union Mutual fund
- Anchor Funds will represent a medium – to -long-term strategic view of the market
- Explorer Funds will be dynamically selected to reflect short- to medium-term market opportunities
“Our Anchor–Explorer model allows us to blend medium-to-long-term conviction with tactical flexibility,” said Mr. Harshad Patwardhan, CIO, Union Asset Management Company Pvt Ltd. “This approach helps investors get broad exposure across market caps while the fund manager actively manages timing and allocations.”
The New Fund Offer (NFO) for the Union Diversified Equity All Cap Active FOF opens on 1st September 2025 and closes on 15th September 2025. Scheme Re-opens within 5 business days of allotment.