Union MF expects its AUM to touch ₹20,000 crore in this fiscal

Union Mutual Fund expects its asset under management to hit ₹1 lakh crore in next five years despite short term upheaval in the markets.

The fund house, which is a joint venture between Union Bank of India and Dai-ichi Life Holdings Inc, expects its SIP book to hit ₹400 crore a month in three years from ₹100 crore currently as it widens market reach and increase its investors base.

Madhu Nair, Chief Executive Officer, Union Mutual Fund, said despite market gyrations, the inflows into MF industry has been stable and whenever the market falls sharply investors pump in lumpsum.

The fund house is promoting SIP as a perpetual bull market since investors accumulate more units whenever the market crashes and benefit from higher NAV in bull market, he said.

“We have not seen any sharp increase in redemption during the recent market crash and SIP inflows in March will bounce back,” he said.

The SIP inflows of the industry will touch ₹40,000 crore over next 18-24 months, added Nair.

The fund house has upgraded Indian markets outlook to ‘attractive zone’ from ‘fair and moderately expensive zone’ last year.

Harshad Patwardhan, Chief Investment Officer, Union Asset Management Company, said while short-term challenges such as global geopolitical tensions and trade-related uncertainties persist, India’s long-term macroeconomic fundamentals remain strong.

Key drivers of growth

Healthy corporate and banking sector balance sheets, prospects of a demand revival fuelled by tax relief, expanded welfare schemes and the potential onset of a new private capex cycle are key positives driving for the outlook, he added.

Union MF expects its AUM to touch ₹20,000 crore in this fiscal from ₹13,500 crore in FY25.

It is also gearing up to launch the Specialised Investment Fund, venture in private credit through Alternate Investment Fund and channel foreign investment in Indian market through a new fund in GIFT City over the next one year.

Nair said the long-term perspective of the Indian economy and equity markets over the next 10 to 15 years looks very promising.

This could be an opportunity to create intergenerational wealth – but only for those who remain disciplined and committed to their financial journey, he added.

“In a noisy market environment, we urge investors to stay focused on their goals and invest consistently for a longer period,” he added.

Published on April 8, 2025