Union Active Momentum Fund Closes On December 12; Tata BSE Business Group Index Fund Closed

New Delhi: Union Mutual Fund’s new NFO “Union Active Momentum Fund” is closing on 12 December 2024. Union Mutual Fund recently announced its entry into Factor Based investing with the launch of its new fund offer - Union Active Momentum Fund (An open-ended equity scheme following momentum theme) that will invest in stocks showing momentum.

The fund's NFO opened for subscriptions on November 28 and is set to close on December 12, 2024. The subscriptions will re-open within 5 business days from allotment. 

The Union Active Momentum Fund follows a proprietary quantitative model that has been rigorously back tested for more than 15 years. The model has many factors namely historical price performance, volatility of returns, relative strength, liquidity etc. to name a few. It involves targeting specific and quantifiable factors of returns in stock markets, such as Value, Growth, Low Volatility and Momentum.

"This fund aims to provide investors with a rules-based strategy to invest in stocks that exhibit momentum characteristics. Investments shall be made purely based on a rule- based mechanical approach, which eliminates emotional biases, ensures flexibility in execution, enables disciplined entry and exit points, and facilitates timely corrective actions through continuous monitoring of outcomes," said the company.

Another NFO, Tata Mutual Fund that introduced the Tata BSE Business Group Index Fund was up for subscription till December 9. The open-ended scheme replicates the BSE Select Business Groups Index (TRI). The NFO will re-open for continuous sales and repurchases on December 18.