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Union KBC looking to cash in on the election fever

Is planning to launch a small and midcap fund and bluechip fund

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Neha Pandey Deoras Mumbai
Last Updated : Jan 21 2014 | 3:38 PM IST
Union KBC Asset Management Company (AMC) is looking to launch a small and midcap fund and bluechip fund (may be called Focussed Large Cap) in 2014. The mutual fund house has approached the market regulator for both the funds but is yet to get a nod for the former. The AMC is looking to cash in on the elections, that is, the theory that markets see a spike after general elections.

"There is scope to launch a pure small and midcap fund and a pure bluechip fund in this calendar year. We plan to launch at least one of these two before the elections, subject to requisite approvals," said Ashish Ranawade, chief investment officer of the company. He said good results in the general elections could be a strong trigger for the equity markets and if the new government is able to address the sluggish economic growth, then there could be subsequent sustained performance by the markets.

Union KBC AMC is also looking to launch series 2 of its Trigger Fund. In the last one month, the fund's series 1 has returned 0.39%, in line with the benchmark BSE 200, which has returned 0.40%.

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This apart, the fund house is also likely to continue its Capital Protection Fund series. Last week, the AMC launched Union KBC Capital Protection Oriented Fund - Series 5, which is a 36-month close-ended capital protection- oriented scheme. The new fund offer is open for subscription till January 29.

"Our mandate was to focus on and grow the India business for the first three years and then consider looking at an international portfolio or an international fund," said Ranawade. The fund house is positive on pharmaceuticals, information technology (IT) and fast moving consumer goods (FMCG) and negative on automobiles, oil & gas, petrochemicals and cement, he said.

Union KBC AMC manages an average asset under management of Rs 2,266.45 crore by the end of December quarter of this fiscal.

Union KBC AMC is a joint venture in which Union Bank of India holds 51% stake with the rest held by KBC Asset Management NV through its subsidiary KBC Participations Renta.

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First Published: Jan 21 2014 | 3:37 PM IST

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