Union Short Duration Fund(IDCW Payout)

Ticker: mf16465
Decent 66/100

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Business Overview

Union Short Duration Fund (IDCW Payout) is designed for investors seeking stable income with a relatively low risk profile. This fund primarily invests in short-term debt and money market instruments, making it suitable for those looking to park their funds for a shorter duration while earning attractive returns. It aims to provide liquidity and capital preservation, making it an ideal choice for conservative investors or those with short-term financial goals.

  • Focuses on short-term debt instruments
  • Ideal for conservative investors
  • Offers regular income through IDCW payouts
  • Maintains liquidity and capital preservation
  • Suitable for short-term financial goals

Investment Thesis

Union Short Duration Fund (IDCW Payout) stands out for its strong promoter credibility and robust digital services growth potential. Its attractive valuation compared to peers makes it a compelling option for retail investors seeking stable returns in a dynamic market.

  • Backed by a reputable promoter group with a proven track record.
  • Significant growth potential in digital services sector, enhancing fund performance.
  • Attractive valuation metrics compared to competing funds, offering better return prospects.
  • Focus on short-duration assets minimizes interest rate risk for investors.
  • Consistent historical performance, ensuring reliability for long-term investors.

Opportunity vs Risk

Opportunities
  • Stable income through regular payouts
  • Low interest rate sensitivity
  • Diversified bond portfolio
  • Suitable for conservative investors
Risks ⚠️
  • Market volatility impact on NAV
  • Interest rate hikes affect returns
  • Credit risk from bond issuers
  • Liquidity risk in short duration bonds

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 potential rerating could occur with improved margin stability and consistent income generation.
📊 Stock Investment Checklist (100 Points)
Union Short Duration Fund(IDCW Payout) • Updated: 2025-10-01 22:00:50
  • 10
    Business
    High
    The fund operates in a stable sector but lacks a significant competitive edge.
  • 10
    Growth
    High
    Consistent revenue growth observed, 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, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity is adequate.
  • 6
    Governance
    Good
    Promoter holding is stable, but some concerns over disclosures.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, execution risks are present.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 66 / 100 • Decent
The Union Short Duration Fund shows decent potential but faces challenges in profitability and valuation compared to peers.