Union Diversified Equity All Cap Active FOF – Reg (G)

• Sushil Bajaj |
• 30 August 2025 |

Union Diversified Equity All Cap Active FOF is an open-ended Fund of Funds that invests mainly (at least 90%) in equity mutual funds across different market caps. Its goal is long-term wealth creation by actively allocating money into schemes that offer better risk-reward opportunities.

👉 However, like other mutual funds, returns are not guaranteed.

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Quick Snapshot

Particulars	Details
Scheme Name	Union Diversified Equity All Cap Active FOF – Reg (G)
Category	Others – Fund of Funds (Equity)
Sub-Category	Fund of Funds – Equity
Scheme Type	Open-ended
Risk Level	Very High
Fund Manager	Gaurav Chopra
Exit Load	1.00%
Minimum Investment	₹1,000
Additional Investment	₹1,000
Open Date (NFO)	September 01, 2025
Close Date (NFO)	September 15, 2025
NAV Calculation	Daily
Repurchase/Redemption	Available post allotment

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Investment Objective

The primary objective of Union Diversified Equity All Cap Active FOF is to generate long-term capital appreciation by predominantly investing in equity mutual funds across varied market caps. The scheme follows an active fund selection approach to identify funds with superior risk–reward potential. While it will primarily allocate to equity-oriented funds (minimum 90%), it may also invest in debt schemes for liquidity and diversification.

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Key Features

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Why to Invest?

Investors often face common challenges such as:

• Over-diversification or under-diversification when directly investing in equities.
• Confusion in fund selection among hundreds of available equity schemes.
• Market volatility risk leading to emotional decisions and missed opportunities.
• Time constraints to actively monitor market caps and sectoral shifts.

Union Diversified Equity All Cap Active FOF aims to solve these pain points by:

✅ Offering one-stop diversification across multiple equity funds.
✅ Allowing professional fund selection by experts scanning the entire mutual fund universe.
✅ Maintaining flexibility across market caps – large-cap stability, mid-cap growth, and small-cap opportunities.
✅ Potentially reducing single fund concentration risk.

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Investment Opportunity

This scheme captures opportunities across market capitalizations:

• Large Caps → Stability & relatively lower volatility.
• Mid Caps → Balanced growth potential.
• Small Caps → High-risk, high-return growth opportunities.

Sector Allocation Potential

While the exact sector allocation depends on underlying equity funds, the portfolio may have exposure to:

• Banking & Financial Services
• Information Technology
• Consumer Goods & Retail
• Healthcare & Pharmaceuticals
• Infrastructure & Industrials
• Emerging sectors (EVs, Renewable Energy, Digital Platforms)

Example Companies (via underlying funds):

• Large Caps → Reliance Industries, HDFC Bank, Infosys
• Mid Caps → Tata Power, Zydus Lifesciences, L&T Finance
• Small Caps → Affle India, Deepak Nitrite, Dixon Technologies

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Investment Strategy

Union Diversified Equity All Cap Active FOF will follow a multi-fund, active selection strategy:

1. Fund Selection Process: Invests in equity schemes from both Union MF and third-party AMCs after evaluating track record, fund manager expertise, sector allocation, and risk profile.
2. Diversified Exposure: Allocates across multiple mutual funds, reducing concentration risk.
3. Active Allocation: Minimum 90% in equity funds (across market caps); remainder in debt funds for liquidity and interest rate optimization.
4. Risk–Reward Balance: Regularly rebalances portfolio to align with market cycles and opportunities.
5. Fully Invested Approach: Intention to stay fully invested in underlying schemes, with only minimal cash for redemption needs.

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Riskometer

• This product is suitable for investors who are seeking :
• Capital Appreciation over long term
• Investment predominately in units of Equity oriented schemes

Investors should consult their financial advisers if in doubt about whether the product is suitable for them. For detailed information regarding the Riskometer, please refer to the respective scheme’s SID.

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FAQs

1. What is Union Diversified Equity All Cap Active FOF?
It is a Fund of Funds (FOF) scheme investing in equity mutual funds across large, mid, and small caps for long-term wealth creation.

2. What is the minimum investment amount?
The minimum investment is ₹1,000, with additional investments allowed in multiples of ₹1,000.

3. What makes this fund different from a regular equity fund?
Instead of directly investing in stocks, this scheme invests in a basket of equity mutual funds, offering built-in diversification and active management.

4. Is there any risk involved?
Yes, being an equity-oriented FOF, it carries very high risk and is suitable only for long-term investors with a higher risk appetite.

5. Can I redeem anytime?
Yes, being an open-ended scheme, investors can redeem post allotment. However, an exit load of 1% applies if redeemed within a specific period.

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Final Takeaway

The Union Diversified Equity All Cap Active FOF – Reg (G) provides an effective gateway for investors seeking diversification across market caps and equity schemes without the hassle of self-selection. With its active fund management approach and exposure across varied sectors, the scheme is well-suited for investors aiming to achieve long-term wealth creation while addressing common challenges like fund selection confusion and concentration risks.

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