The new fund offer opens for subscription on June 02, 2014 and closes on June 16, 2014.
JP Morgan Mutual Fund announced the launch of its open end large cap equity fund called JP Morgan India Top 100 Fund. The new fund offer opens for subscription on June 02, 2014 and closes on June 16, 2014.
The scheme aims to provide capital appreciation and reduce downside risk by investing in equity instruments of top 100 companies based on market capitalization.
Sharing the rationale behind launching this fund, Nandkumar Surti, Managing Director and Chief Executive Officer, JP Morgan MF said in a press conference held at Mumbai, “We have observed that many investors have been investing in the asset classes having less volatility and assuring fixed returns like tax free bonds, NCDs, FMPs etc. for last six years. Hence, we strongly believe that these set of investors who want to make a comeback into equity will look at this fund since it will ensure less volatility with reasonable returns.”
Supreet Bhan, Executive Director and Head – Retail Sales, JP Morgan MF told Cafemutual that his fund house is heading towards completing its range of product suite in the equity category. Also, this is different from other large cap equity funds since the fund management strategy will focus on delivering risk adjusted returns and reduce downside risks, he added.
Harshad Patwardhan, Head of Equities, JP Morgan MF said that Indian economy has bottomed out and it is set to grow from here. “The cyclical recovery has started due to political change and strong macroeconomic factors. Currently, corporate margin is at a decadal low. It can pick up from here.”
“We focused on large cap fund because financial stability of large cap stocks is better than that of mid and small cap companies over a long period. Secondly, our fund tends to protect the downside risk and aims to deliver better risk adjusted returns to investors,” Patwardhan told media.
On fund management strategy, Patwardhan said the fund will follow a bottom up strategy and focus on balancing returns with lower degree of volatility. The stocks will be selected on basis of growth potential of a company, strong fundamentals, management expertise etc. Under normal circumstances, the fund would invest more than 80% in large cap equity instruments.
The fund house aims to collect Rs. 500 crore during the NFO.
The
fund is benchmarked against S&P BSE 100. The minimum application amount is Rs.
5,000. The fund will charge an exit load of 1% if redeemed within 18% from the
date of allotment. Harshad Patwardhan and Amit Gadgil are the fund managers of
the scheme.
