Union Mutual Fund has launched a new scheme — Union Diversified Equity All Cap Active FoF, open for subscription from 1st September to 15th September 2025. With a very high-risk profile, this NFO predominantly invests in equity funds across varied market capitalisations to seek long-term capital appreciation.
Key NFO Details
| Detail | Information |
| Fund Name | Union Diversified Equity All Cap Active FoF (Direct – Growth) |
| NFO Period | 01 September 2025 to 15 September 2025 |
| Allotment Date | 22 September 2025 |
| Category | Equity FoF |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | BSE 500 TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | Exit load of 1%, if redeemed within 1 year |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme is designed to:
- Provide long-term capital appreciation by investing predominantly in equity funds covering large-cap, mid-cap, and small-cap funds.
- Achieve diversification through a fund-of-funds (FoF) approach, reducing single-fund concentration risk.
This approach seeks to balance exposure across market caps while aiming for superior long-term returns, making it suitable for risk-tolerant investors seeking equity-focused growth.
How Does This Compare with the Category?
While this is a new fund with no performance history, here’s the category average performance:
| Time Period | Category Avg. Returns (CAGR) |
| Since Inception | -4.62% |
Should You Invest in This NFO?
Investing in this NFO may be suitable if:
- You’re seeking very high-risk equity exposure across multiple market capitalisations.
- You want diversification through a fund-of-funds structure.
- You’re comfortable investing in a new fund with no past performance data.
However, note: NFOs have no historical returns, making them more suitable for informed or risk-tolerant investors.
Also Read:
- Baroda BNP Paribas Business Conglomerates Fund NFO: A Thematic Equity Opportunity for 2025
- Mirae Asset Multi Factor Passive FOF & Gold Silver Passive FoF NFOs: Diversified Investment Strategies for 2025
- Bajaj Finserv Equity Savings Fund NFO: A Balanced Investment Approach for 2025
- ICICI Prudential Active Momentum Fund NFO: Capturing Market Trends for Growth
- SBI Nifty100 Low Volatility 30 Index Fund NFO: Targeting Stability in Volatile Markets
About Union Mutual Fund
Union Mutual Fund manages ₹21,203 Cr AUM (as of June 30, 2025) and offers a range of high-performing equity funds, such as:
| Fund Name | AUM | 1Y Returns | 5Y Returns |
| Union Midcap Fund | ₹1,503 Cr | -0.8% | 27.21% |
| Union Small Cap Fund | ₹1,682 Cr | -3.46% | 27.02% |
| Union Value Fund | ₹333 Cr | -3.28% | 21.82% |
| Union Large & Midcap Fund | ₹887 Cr | -1.35% | 21.02% |
| Union ELSS Tax Saver Fund | ₹908 Cr | -1.98% | 20.74% |
| Union Flexi Cap Fund | ₹2,344 Cr | -1.71% | 20.4% |
Final Thoughts
If you’re looking to diversify your mutual fund portfolio in 2025 with high-risk equity exposure, the Union Diversified Equity All Cap Active FoF NFO may be worth considering.
Before investing, review the scheme document thoroughly and consider your financial goals, risk appetite, and investment horizon.
