Unifi Mutual Fund has announced the launch of their Unifi Dynamic Asset Allocation Fund, a fund that aspires to deliver meaningful returns that beat inflation across economic cycles. The scheme is suitable for investors looking for low volatile, inflation-beating returns over an investment horizon of two years or more.
The NFO opens on 3rd March ’25 and closes on 7th March ’25, with the scheme reopening for subscriptions on 21st March ’25.
V N Saravanan, Chief Investment Officer, Unifi Mutual Fund, said, “The fund management team has complete discretion to allocate 0% to 100% across various segments of debt and equity in any proportion. The flexibility shall be used consciously to limit downside across economic cycles while striving to achieve consistent real returns over inflation.”
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Fund features
* The fund’s agility to shift among various segments of debt and equity provides investors the option to stay passive and not be hassled about moving categories when the economic cycle changes.
* The near to mid-term outlook on growth-inflation would influence the fund’s allocation among chosen segments of debt and equity.
“Broadly there could be 4 cycles – Rising Growth-Falling Inflation; Rising Growth-Rising Inflation; Falling Growth-Rising Inflation; and Falling Growth-Falling Inflation. The empirically low volatile segments like Government securities, AAA bonds, hedged equity and special situations arbitrage would have a fair chunk of allocation in all economic cycles. The segments like credits and diversified equity will be opportunistically considered when the economic outlook indicates rising growth and reduced when the growth projection suggests weakness. The traditional options don’t seem to deliver this proposition, pushing investors to allocate to segments that are more risky or illiquid,” Saravanan added.
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