JP Morgan fund house has announced the launch of its JP Morgan India Short Term Income Fund. This is an open ended Income fund.
The fund has the leeway of investing up to 100 per cent in cash, cash equivalents and other fixed income securities with maturity not more than a year while it may also invest up to 35 per cent in fixed income securities with maturity of more than a year.
Elaborating about the fund, Nandkumar Surti, Chief Investment Officer, JP Morgan fund house, said, “In light of the current scenario of growth on the recovery track and increasing inflationary expectations, we expect the RBI to start the monetary tightening process sometime in the near future. The interest rate market is currently pricing aggressive rate hikes in the medium term. However we feel that the rate hikes may not be that aggressive. This has led to a very favourable risk-return ratio in few segments of the yield curve – particularly at the shorter end of the yield curve. These factors create a favourable environment for an investor with a 6-12 months investment horizon. Therefore, a short-term income fund should form an integral part of an investor’s portfolio.”
The fund performance will be benchmarked against the CRISIL Short-Term Bond Fund Index. Nandkumar Surti and Namdev Chougule will be the fund managers. Both Surti and Chougule hold 20 years and nine years of experience respectively. The fund offers both growth and dividend options.
With this launch, the fund house has completed its product portfolio as it already had medium term, ultra short term and liquid funds. As per data available till February 28, 2010, the Assets under Management (AUM) of JP Morgan fund house stood at Rs 4,640 crore which was an increase of 7.52 per cent from its January assets. Out of the total assets, 80 per cent of its assets was in fixed income.
The exit load applicable would be 0.15 per cent if redeemed within 15 days (Both SIP and Non SIP). The minimum application amount would be Rs 5,000. The fund opened for subscription on March 18, 2010 and will close on March 23, 2010.
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