Union KBC launches Capital Protection Oriented Fund-Series 1

Union KBC Asset Management Company (Union KBC), a subsidiary of Union Bank of India, today launched Capital Protection Oriented Fund – Series 1.

The New Fund Offer will remain open till September 17, the Union KBC said in a release issued here.

"We have equities, an asset class that has historically outperformed debt and cash, and beaten inflation over a medium to long term period, appearing to be relatively attractively priced. However, we also have investors that are nervous to invest because of the recent history of market volatility. This product allows these investors to gain exposure to equities with some degree of comfort about their capital," Union KBC Chief Executive Officer G Pradeepkumar said.

By investing a majority of the funds in highly rated debt and money market instruments, the scheme aims to protect the capital at the time of maturity.

The remaining proportion of the funds will be invested in equity and equity related instruments which may generate a positive return on the initial investment and grow the money.

This scheme is open for investment to individual and non-individual investors and is ideal for investors who do not want to take a major risk on their invested capital but would like exposure to equities.

It is also aimed at first time Mutual Fund investors who have traditionally only invested in fixed income instruments, but would like to participate in the returns offered by the Indian equity markets.