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Union KBC Mutual Fund will redeem the first series of its trigger fund as the net asset value of the scheme touched the targeted level of ₹13 on Monday. Redemption proceeds would be remitted to investors at the applicable NAV on July 21. The trigger fund collected about ₹35 crore.
The close-ended equity scheme had an inbuilt profit-booking feature, to enable investors realise their profits at a pre-defined level and enjoy benefits of appreciation of the investments. The scheme was to be wound up on completion of three years from the date of allotment or the 10th business day from the NAV crossing ₹13 a unit, whichever is earlier. On an average the portfolio contained about 32 stocks.
G Pradeepkumar, Chief Executive Officer, Union KBC Asset Management Company, said, “The scheme was the first of its kind which offered compulsory redemption once the scheme achieved 30 per cent absolute appreciation. Two important factors that reinforced confidence about the fund were the strong back testing results and our expectation that the General Elections would prove to be a game changing event for the equity markets.”
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