Unifi MF submits application to SEBI for its inaugural fund, a dynamic asset allocation fund

Investments Events

Posted by NewAdmin on 2025-01-31 08:44:55 |

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Unifi Asset Management Pvt Ltd, set to launch soon, has submitted an application to the Securities and Exchange Board of India (SEBI) for its first mutual fund scheme, which is a dynamic asset allocation fund. This marks a significant step as SEBI had granted Unifi Capital the final approval in November to begin its mutual fund operations.

The firm is poised to become the 44th asset management company (AMC) in India’s rapidly expanding mutual fund industry, which, as of December, had assets worth Rs 69.33 lakh crore. Founded in 2001 as a registered portfolio manager, Unifi has a considerable footprint in India and abroad. The company’s total assets under management (AUM), as of October 31, stood at approximately Rs 27,000 crore, encompassing both equity and debt investments through its Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) platforms.

Unifi’s forthcoming fund, the dynamic asset allocation fund, is set to enter the largest category of hybrid funds, known for their flexibility and adaptive strategy. As of the end of December, hybrid funds in the dynamic asset allocation or balanced advantage category had an AUM of Rs 2.86 lakh crore, distributed across 34 schemes. These funds strategically invest in a combination of equities and bonds, adjusting their exposure based on market conditions to enhance returns.

According to the information document filed with SEBI, the Unifi Dynamic Asset Allocation Fund will dynamically manage its equity and debt investments. It may allocate anywhere between 0 to 100 percent in equity and equity-related instruments, and a corresponding 0 to 100 percent in debt instruments. This flexibility allows the fund to adapt to market conditions, potentially becoming fully equity-focused when equity markets are expected to perform well. The scheme’s benchmark will be the CRISIL Hybrid 50 + 50 Moderate Index.

The fund will be managed by a team led by Saravanan VN, the Chief Investment Officer at Unifi Mutual Fund, alongside Aejas Lakhani (equity fund manager) and Karthik Srinivas (debt fund manager). George Alexander serves as the CEO of Unifi Mutual Fund.

The Indian mutual fund industry is highly competitive, with several other players entering the space. Notably, AlphaGrep Securities, Ask Investment Managers, and Monarch Networth Capital are currently awaiting in-principle approval for mutual fund licenses from SEBI. Meanwhile, Capitalmind Financial Services Private and Jio Financial Services & BlackRock Financial Management have received in-principle approvals, with final registration approvals being processed. Angel One has also been granted a SEBI license to start its mutual fund operations.

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