Union KBC is Out With Its First Mutual Fund Plans - to Raise Rs 600-cr

Mr M.V. Nair (right), CMD, Union Bank of India along with Mr G. Pradeepkumar, Chief Executive Officer, Union KBC Asset Management Company Pvt Ltd, at a press conference to announce the launch of its first product from Union KBC Mutual fund in Mumbai on Wednesday. — Photo: Paul Noronha

At a press meet on Wednesday it was revealed that Union KBC Asset Management plans to raise a sum of Rs. 600 crore from its open-ended equity scheme- Union KBC Equity Fund by the month of December. The product is the first to be launched by Union KBC after it got the nod to go ahead with its mutual fund business. The fund on offer would be up for grabs from May 20 and will conclude on June 3. The fund is touted to invest 75-100 percent in equity and its related instruments and the remaining in money market and debt instruments. The minimum amount which can be invested is Rs. 5000 and thereafter it can be further increased by multiples of Re 1.

Mr. G. Pradeep Kumar, the Chief Executive Officer of Union KBC Asset Management was quoted as saying that the company is in the process to launch up to 8 new products in the upcoming years from a wide range of products, such as Debt, Equity and Balanced. He also stated that the company is looking at some offshore funds as well but as of now they are concentrating on the operation in the country.

KBC Asset is the asset management subsidiary of Bancassurer, a KBC Group company. This fund is jointly offered by KBC Asset management in collaboration with government owned Union Bank of India. For officials at Union Bank of India the launch of this initiative is just a natural extension of the bank’s strategy in its quest to provide a complete financial package to its customers.

Union Bank of India boasts of 3000 branches across the country with a customer base reaching 3 crores. To begin with, the bank will only target its customer base through its vast network of branches. Branch officials also notified that staff has already been trained in the process of sales and distribution of mutual funds.