Union Short Duration Fund(IDCW)

Ticker: mf16464
Decent 68/100

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Business Overview

Union Short Duration Fund (IDCW) is designed for conservative investors seeking stable returns with a short investment horizon. This fund primarily invests in debt and money market instruments, aiming to provide capital appreciation while managing interest rate risk. Ideal for those looking to park their funds for a short period, it offers liquidity and a balanced approach to wealth creation.

  • Focuses on short-duration debt instruments
  • Ideal for conservative investors
  • Offers capital appreciation with reduced risk
  • Provides liquidity for short-term needs
  • Aims for stable and consistent returns

Investment Thesis

Union Short Duration Fund (IDCW) stands out due to its robust promoter group and credibility in the market. With a significant growth runway in digital services, it presents an attractive investment opportunity. The fund's valuation is competitive compared to its peers, making it a compelling choice for retail investors seeking stability and growth.

  • Strong backing from a reputable promoter group enhances trust.
  • Digital services sector poised for substantial growth, benefiting the fund.
  • Attractive valuation metrics compared to peer funds in the market.
  • Focus on short-duration investments minimizes interest rate risk.
  • Consistent performance track record boosts investor confidence.

Opportunity vs Risk

Opportunities
  • Stable income generation
  • Low interest rate sensitivity
  • Diversified investment portfolio
  • Potential for capital appreciation
Risks ⚠️
  • Interest rate fluctuations
  • Credit risk from bonds
  • Market volatility impact
  • Liquidity concerns in downturns

Peer Perspective

Union Short Duration Fund trades at a slight premium compared to peers like HDFC Short Term Debt Fund and ICICI Prudential Short Term Fund. A stabilization in margins could trigger a positive rerating.
📊 Stock Investment Checklist (100 Points)
Union Short Duration Fund(IDCW) • Updated: 2025-10-01 22:01:01
  • 10
    Business
    High
    The sector is stable but lacks significant growth potential.
  • 10
    Growth
    High
    Consistent revenue growth but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity is a concern.
  • 6
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Limited growth catalysts identified.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The fund shows decent performance metrics but faces challenges in profitability and growth potential.