Union KBC MF launches equity fund

Union KBC Equity Fund is a diversified equity scheme.

Union KBC Asset Management Company,a joint venture between Union Bank of India and Belgium’s KBC Asset Management NV,today launched its first scheme – Union KBC Equity Fund.

Union KBC Equity Fund is a diversified equity scheme that offers an efficient way for investors to gain exposure in the domestic stock markets,Union KBC CEO G Pradeepkumar told reporters here.

The scheme will open for subscription on May 20 and will close on June 3.

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Through this fund the company is targeting to raise Rs 600 crore,Union Bank of India Chairman and Managing Director and Union KBC Chairman M V Nair said.

Union Bank of India holds 51 per cent share,while KBC Asset Management NV hold 49 per cent through its wholly-owned subsidiary KBC Participations Retna,the asset management arm of Group.

“The growth outlook of the India Mutual Fund industry over the coming years is very favourable and the Union Bank wants to be an active participant of the industry,” he said.

Union KBC is planning to launch a debt fund soon,he said adding that the company is looking at launching total six products in this fiscal,including Union KBC Equity Fund.

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Initially,this product will be sold through 800 Union Bank of India branches across the country by 1,000 trained professionals,he said.

“However,as we train more people we will make the products available in more Union Bank of India branches,” he said.

The company is targeting a three per cent market share through this product.