JM Mutual Fund is winding up its close-ended tax saving scheme- JM Tax Cover '96, which was due for redemption in Year 2006. The investors standing on records as on August 14, 2001 would get their units redeemed at the NAV on that date.
Initially a diversified portfolio of large cap cyclical stocks, the fund realigned its portfolio in favour of Software, Pharma and FMCG in 1998. However, with the tech boom, the fund's tech allocation bloated to 75% in June 2000 (38% allocation to Infosys technologies) making it a proxy for an infotech fund. Thus after an unprecedented return of 150% in calendar 1999, the fund came crashing down in the subsequent tech meltdown. Currently for the one-year ending June 2001, the fund has lost a whopping 51%.
Despite a large part of the fund's erstwhile gains getting swept away in the recent downturn, the fund sports a reasonable return of 19.71% since its launch in March 96. The dividend option of the scheme has till date paid an aggregate dividend of 136 per cent including a hefty 100 percent dividend during the year 2000.