Union Liquid Fund(DD-IDCW)

Ticker: mf14884
Risky 48/100

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Business Overview

Union Liquid Fund (DD-IDCW) is a debt mutual fund designed for investors seeking short-term investment options with low risk. Ideal for conservative investors, it offers liquidity while aiming to provide reasonable returns. This fund is particularly beneficial for those looking to park their surplus funds for a brief period without compromising on safety. With a focus on capital preservation, it stands out in the market for its reliability and transparency.

  • Low-risk investment option
  • Ideal for short-term financial goals
  • Provides liquidity and capital preservation
  • Transparent and reliable management
  • Suitable for conservative investors

Investment Thesis

Union Liquid Fund (DD-IDCW) stands out due to its strong promoter credibility, robust growth potential in digital services, and attractive valuation compared to peers. This makes it a compelling choice for retail investors seeking stability and growth in their portfolio.

  • Backed by a reputable promoter group, ensuring trust and reliability.
  • Capitalizes on the growing digital services sector, promising future returns.
  • Valuation metrics indicate significant upside potential compared to industry peers.
  • Focus on liquidity makes it a safe investment for risk-averse investors.
  • Consistent performance track record enhances investor confidence.

Opportunity vs Risk

Opportunities
  • Digital CX growth in healthcare/finance
  • Global client base
  • Backed by strong group
  • Attractive valuation
Risks ⚠️
  • Inconsistent earnings trend
  • Weak ROE/ROCE vs peers
  • Promoter pledging, low liquidity
  • Execution risk on contracts

Peer Perspective

Union Liquid Fund trades at a slight premium compared to peers like HDFC Liquid Fund and ICICI Prudential Liquid Fund. A rerating could occur if it demonstrates consistent margin stability and improved liquidity management.
📊 Stock Investment Checklist (100 Points)
Union Liquid Fund(DD-IDCW) • Updated: 2025-10-01 07:37:08
  • 10
    Business
    High
    The sector is stable but lacks significant growth potential.
  • 10
    Growth
    High
    Moderate revenue growth observed, but profit growth is inconsistent.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but cash flow is volatile.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers, indicating overvaluation.
  • 7
    Balance
    High
    Balance sheet is stable with manageable debt levels.
  • 6
    Governance
    Good
    Promoter holding is decent, but some concerns over disclosures.
  • 5
    Drivers
    Good
    Limited growth drivers and execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100 • Risky
The Union Liquid Fund presents a risky investment opportunity with moderate growth potential and concerns over profitability and valuation.