Unifi MF files for its first fund with SEBI, a dynamic asset allocation fund

Unifi Capital will be the 44th firm to launch a mutual fund.

Soon-to-be-launched Unifi Asset Management Pvt Ltd has applied for its first mutual fund scheme, a dynamic asset allocation fund, with the Securities and Exchange Board of India (SEBI).

The markets regulator had in November given Winning against the herd: How to become a successful contrarian investor the final approval to begin mutual fund operations.

The asset management company (AMC) would be the 44th firm to launch in the Indian mutual fund industry, which had assets worth Rs 69.33 lakh crore in December.

Unifi was established in 2001 as a registered portfolio manager. The AUM of the group as of October 31 was about Rs 27,000 crore in equity and debt via its Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) platforms in India and abroad.

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Dynamic asset allocation or balanced advantage fund is the biggest category in hybrid funds with a net AUM of Rs 2.86 lakh crore via 34 schemes as of December end.

These funds invest in a mix of stocks and bonds, depending on the relative attractiveness of the asset class.

According to the scheme information document filed with SEBI, Unifi Dynamic Asset Allocation Fund proposes to invest in equity or debt that is managed dynamically – 0 percent to 100 percent in equity and equity-related instruments and 0-100 percent in debt instruments. In theory, such funds can become a pure equity fund if this segment is expected to do well.

The benchmark to the scheme would be CRISIL Hybrid 50 + 50 Moderate Index.

The scheme will be managed by Saravanan VN, Aejas Lakhani (equity fund manager) and Karthik Srinivas (debt fund manager).

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Saravanan is the chief investment officer of Unifi Mutual Fund and George Alexander the chief executive officer.

The mutual fund industry is one of the most competitive spaces in the Indian financial services industry.

AlphaGrep Securities, Ask Investment Managers and Monarch Networth Capital are waiting for in-principle approval from the regulator for a mutual fund licence, the latest status of MF applications on SEBI's website shows.

Capitalmind Financial Services Private and Jio Financial Services & BlackRock Financial Management have been granted in-principle approvals and the nod for final registration is being considered.

Angel One has also received the SEBI licence to commence its mutual fund business.

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