Scheme Information Document
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SCHEME INFORMATION DOCUMENT UNION MONEY MARKET FUND (An open ended debt scheme investing in money market instruments) Offer of Units of ` 1,000 each for cash during the New Fund Offer and continuous offer for Units at NAV based prices (Face Value ` 1,000) This product is suitable for investors who are seeking*: Riskometer • Regular income over short term Moderately • Investments in money market instruments with maturity upto one year Moderate High High Low to Moderate V er y High Low RISKOMETER Investors understand that their principal will be at low to moderate risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: The above product label assigned during NFO is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. New Fund Offer Opens on: August 24, 2021 New Fund Offer Closes on: August 25, 2021 Scheme Re-opens for continuous sale and repurchase on: Within 5 business days from the date of allotment. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (AMC). The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Union Mutual Fund, Tax and Legal issues and general information on www.unionmf.com SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated July 30, 2021. Name of Mutual Fund: Union Mutual Fund Unit 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400059 • www.unionmf.com Name of Asset Management Company: Union Asset Management Company Private Limited Corporate Identity Number (CIN): U65923MH2009PTC198201 Unit 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400059. Toll Free No. 18002002268 / 18005722268 • Non Toll Free. 022-67483333 • Fax No: 022-67483401 • Website: www.unionmf.com • Email: [email protected] Name of Trustee Company: Union Trustee Company Private Limited Corporate Identity Number (CIN): U65923MH2009PTC198198 Unit 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400059 T +91-22-6748 3333 • F +91-22-6748 3401 Name of Sponsors: 1) Union Bank of India Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021 2) Dai-ichi Life Holdings, Inc. 13-1, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100- 8411, Japan THIS PAGE IS INTENTIONALLY LEFT BLANK TABLE OF CONTENTS Particulars Page No. HIGHLIGHTS/SUMMARY OF THE SCHEME 4 I INTRODUCTION 11 A. Risk Factors 11 B. Requirement of Minimum Investors in the Scheme 14 C. Special Considerations 14 D. Definitions & Abbreviations 19 E. Due Diligence by the Asset Management Company 27 II. INFORMATION ABOUT THE SCHEME 28 A. Name & Type of the Scheme 28 B. What is the Investment Objective of the Scheme? 28 C. How will the Scheme allocate its assets? 28 D. Where will the Scheme invest? 33 E. What are the Investment Strategies? 34 F. Fundamental Attributes 36 G. How will the Scheme Benchmark its Performance? 38 H. Who manages the Scheme? 38 I. What are the Investment Restrictions? 40 J. How has the Scheme Performed? 44 K. Debt and Money Markets in India 44 L. Additional Scheme Disclosures 45 III. UNITS AND OFFER 46 A. New Fund Offer (NFO) 46 B. Ongoing Offer Details 59 C. Periodic Disclosures 102 D. Computation of NAV 108 IV. FEES AND EXPENSES 109 A. New Fund Offer (NFO) Expenses 109 B. Annual Scheme Recurring Expenses 109 C. Load Structure 112 D. Waiver of Load for Direct Applications 114 E. Transaction Charges to Distributors 114 V. RIGHTS OF UNITHOLDERS 115 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF 115 INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 3 HIGHLIGHTS/SUMMARY OF THE SCHEME Name of the Scheme Union Money Market Fund Type of Scheme An open ended debt scheme investing in money market instruments. Investment objective The investment objective of the Scheme is to generate regular income through investment in a portfolio comprising of money market instruments. However, there is no assurance that the Investment Objective of the Scheme will be achieved. Plans The Scheme will offer the following Plans across a common portfolio: Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with Union Mutual Fund and is not available for investors who route their investments through a Distributor (AMFI registered distributor / ARN Holder). Investors subscribing under Direct Plan will have to indicate the Plan against the Scheme name in the application form as “Union Money Market Fund - Direct Plan”. Regular Plan: Regular Plan is for investors who purchase /subscribe Units in the scheme through a Distributor. The Direct Plan shall have a lower expense ratio as compared to the Regular Plan to the extent of distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. The Direct Plan shall have a separate NAV. Default Plan: The treatment of applications under “Direct”/ “Regular” Plans shall be as follows: Scenario Broker Code Plan mentioned Default Plan to be mentioned by the by the investor captured investor 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan 4 In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of allotment of aforesaid units under the Regular Plan, without any exit load. Options Union Money Market Fund will have the following options offered under each of the above mentioned Plans: Growth Option: This option is suitable for investors who are not seeking dividend but who invest only with the intention of capital appreciation. Income Distribution cum Capital Withdrawal Option (IDCW): This option is suitable for investors seeking income through dividend declared by the Scheme. Under this option, the Scheme will endeavour to declare dividends from time to time. The dividend shall be dependent on the availability of distributable surplus. When units are sold, and sale price (Net Asset Value) is higher than face value of the unit, a portion of sale price that represents realized gains is credited to an Equalization Reserve Account which can be used to pay dividends. Investors are requested to note that, under the aforesaid Option, the amounts can be distributed out of investors capital (Equalization Reserve), which is part of sale price that represents realized gains. Whenever distributable surplus will be distributed, a clear segregation between income distribution (appreciation on NAV) and capital distribution (Equalization Reserve) shall be suitably disclosed in the Consolidated Account Statement provided to investors. The Income Distribution cum Capital Withdrawalhas the following facilities: Reinvestment of Income Distribution cum Capital Withdrawal Option (Daily*, Weekly* & Monthly) Payout of Income Distribution cum Capital Withdrawal Option (Monthly) Transfer of Income Distribution cum Capital Withdrawal Plan (Daily*, Weekly* & Monthly) In cases where the investor fails to opt for a particular Option at the time of investment, the default option will be Growth Option. If the investor chooses Income Distribution cum Capital Withdrawal Optionand fails to mention Facility, then the default Facility will be Reinvestment of Income Distribution cum Capital Withdrawal Option. If the investor chooses any facility and fails to mention frequency, then the default frequency will be Monthly. If an investor opts for Transfer of Income Distribution cum Capital Withdrawal Plan, the investor must meet the minimum balance criterion in the target scheme and in the same folio; else the dividend will be compulsorily re-invested in the source scheme. 5 * It must be noted that Daily and Weekly IDCW options available under the Scheme are currently NOT available in the dematerialised mode. Minimum application Rs. 5,000 and in multiples of Rs. 1 thereafter. amount For Systematic Investment Plan (SIP): Rs. 2,000 and in multiples of Rs.1 thereafter (for monthly frequency) Rs. 5,000 and in multiples of Rs. 1 thereafter (for quarterly frequency) Minimum additional Rs. 1,000 and in multiples of Rs. 1 thereafter application amount (for subsequent investments under an existing folio) Minimum redemption Rs.1,000 or the balance in the account of the unitholder, whichever is lower.