ICICI Prudential Mutual Fund and Union Mutual Fund have introduced two new investment schemes, catering to the diverse needs of retail investors. The ICICI Prudential Nifty200 Quality 30 Index Fund is an open-ended index scheme that tracks the Nifty200 Quality 30 Index, focusing on 30 high-quality companies with strong financial metrics. This passively managed fund offers exposure to companies with high return on equity, low financial leverage, and stable earnings growth. The scheme is designed to provide long-term wealth creation with a transparent approach, historically performing well in downturns.
On the other hand, Union Mutual Fund’s Union Income Plus Arbitrage Active Fund of Fund (FOF) is an open-ended scheme that aims to generate medium- to long-term income through dynamic allocation between arbitrage and debt-oriented mutual fund schemes. The fund offers a tax-efficient income solution, with potential equity-like long-term capital gains taxation at 12.5% if held for over 24 months. The scheme is professionally managed and provides a diversified income strategy combined with simplified portfolio access.
Both funds offer various investment options, including Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and Systematic Withdrawal Plans (SWPs), catering to different investor needs. The ICICI Prudential fund has a minimum SIP amount of ₹1,000, with no exit load, while the Union Income Plus Arbitrage Active FOF provides a streamlined investment experience with a single net asset value (NAV).
These new fund offers add diversity to the Indian investment market, responding to varying investor appetites for risk and returns. By tapping into both quality indexing and arbitrage opportunities, ICICI Prudential and Union Mutual Fund position themselves strategically against competitors. The emphasis on providing long-term value through carefully curated portfolios could enhance investor confidence in these offerings.
The launches are part of the mutual funds’ broader strategies to provide investor-centric solutions. Union Mutual Fund has recently launched other schemes, such as the Union Multi Asset Allocation Fund and Union Gold ETF-based offerings, while ICICI Prudential has focused on providing transparent and cost-efficient investment options. As investors navigate market uncertainties, these new fund offers present promising options that align with modern investment philosophies, focusing on quality, tax efficiency, and strategic allocation.