News Roll
June 1: Union AMC
Corporate Bond
Fund re-opens
U
nion Asset Management
Company (Union AMC)
launched Union Corporate
Bond Fund in May this year. It
is an open-ended debt scheme
predominantly investing in AA+
and above rated corporate bonds.
The fund offer period for the
scheme first opened on May 4 and
closed on May 18. It will re-open
on June 1 to enable continuous
subscription and redemption.
It is a moderately low risk
scheme, where income will be
generated through interest accrual
and capital appreciation by
investing in fixed income securities
of varying maturities, according
to the scheme information
document.
“The scheme is over a medium
to long-term period, and is more
tax efficient as compared to most
traditional investments offering
a fixed rate of interest,” the
document states.
In addition, the scheme may
be lower on volatility and risk
parameters as compared to other
asset classes, according to a Union
AMC release.
Investments in debt mutual
fund schemes, when held for
more than three years, are eligible
for Long Term Capital Gain Tax
(LTCG) with indexation benefit,
making post-tax returns on debt
funds more attractive than most
traditional investments.
Union Asset AMC is a 100 per
cent subsidiary of the Union Bank
of India. Its total average assets
under management (AAUM)
for April 2018 are `4,444 crore,
taking into account all product
categories. Japanese financial
services major Dai-ichi Life bought
39.62 per cent stake in Union
AMC this month.
By Suyash Desai
16
Outlook Money June 2018 www.outlookmoney.com
IRCTC ties up with SBI to
launch platinum card
The Indian Railway Catering & Tourism Corporation (IRCTC),
the ticketing arm of the Indian Railways, is offering a platinum card
in collaboration with the State Bank of India (SBI), the country’s
largest lender. The card will enable customers to save on booking
train tickets, purchasing fuel at petrol pumps and making purchases
at departmental stores.
The platinum card enables the customer to earn 4 per cent of the
value-back reward points. The total number of value-back reward
points on the platinum card increases to 10 per cent when booking
is done for an air-conditioned train.
The annual one-time fee for availing the IRCTC SBI platinum
card is `500. The renewal charge is `300 per annum.
The benefits:
■ Customers can save 1.8 per cent of transaction charges when rail
tickets are booked through irctc.co.in.
■ Customers can save 1 per cent fuel surcharge for buying petrol
worth `500-`3,000 (exclusive of GST and other charges) in any
petrol pump across the country.
■ Card holders are entitled to use the interest free credit period
between 20 days and 50 days, but this is applicable only on retail
purchases, and only if previous month’s outstanding balance has
been paid in full.
■ They can access a cash advance limit of up to 80 per cent of the
credit limit (maximum up to `12,000 per day).
■ If a customer happens to spend `10,000 on AC tickets in one
quarter and `1,00,000 on fuel and another `1,00,000 on
purchases in departmental stores, travel and electronic items,
then cash benefits worth `1,380 and reward points worth `1,630
will accrue additionally.
■ Cardholders will earn `180 saving on transaction charges, besides
`1,200 on fuel surcharge waiver.
By Suyash Desai