Union Income Plus Arbitrage Active FOF(IDCW Payout)
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Business Overview
Union Income Plus Arbitrage Active Fund of Funds (IDCW Payout) is designed for investors seeking stable returns through a diversified portfolio. This fund primarily invests in arbitrage opportunities, balancing risk and reward effectively. Ideal for conservative investors looking for consistent income, it aims to capitalize on market inefficiencies while minimizing volatility. With a focus on capital preservation, this fund is a smart choice for those who prioritize steady growth over high-risk investments.
- Designed for conservative investors
- Focuses on stable, consistent income
- Invests in arbitrage opportunities
- Minimizes market volatility
- Aims for capital preservation
- Diversified portfolio for risk management
Investment Thesis
Union Income Plus Arbitrage Active FOF stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This fund is well-positioned for consistent returns, making it a compelling choice for retail investors seeking stability and growth.
- Strong backing from a reputable promoter group enhances investor confidence.
- Digital services are experiencing rapid growth, providing significant upside potential.
- Attractive valuation metrics compared to peer funds indicate a favorable entry point.
- Focus on arbitrage opportunities offers a balanced risk-return profile.
- Consistent performance history reinforces trust among retail investors.
Opportunity vs Risk
- Potential for steady income
- Diversification across multiple assets
- Professional fund management
- Access to arbitrage opportunities
- Market volatility impact
- Interest rate fluctuations
- Liquidity concerns
- Management fees may reduce returns
Peer Perspective
Union Income Plus Arbitrage Active FOF trades at a slight premium compared to peers like HDFC Arbitrage Fund and ICICI Prudential Arbitrage Fund. A rerating could occur if margin stability improves amid rising market volatility.
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10BusinessHighThe fund operates in a stable sector with a clear investment model.
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10GrowthHighModerate revenue and profit growth consistency observed.
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8ProfitabilityHighROE and OCF are acceptable but not outstanding.
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9ValuationHighValuation metrics are in line with peers.
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7BalanceHighDebt levels are manageable with adequate liquidity.
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6GovernanceGoodPromoter holding is stable, but some concerns on disclosures.
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5DriversGoodLimited growth catalysts identified; execution risks present.
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1TechnicalsLowWeak market sentiment and low liquidity.