I am a regular reader of your magazine "Mutual Fund Insight". I have invested my money in JM Core-11 Series-1 and JM-Agri & Infra Fund. What is the future of these two funds?
Should I stay invested with these funds or exit from them? I have read your article and it is my understanding that one should avoid the NFO, but currently I have invested my 25 percent of money in NFOs like Franklin High Growth Companies, Reliance Equity Advantage, JM Core-11, JM-Agri & Infra, AIG India Equity fund. So what should I do with these funds now? Which is the best fund in Midcap and Flexi cap category?
Newly launched JM Core-11 Series-1 and JM Agri & Infra fund are close-ended equity diversified fund having maturity period of 3 years. JM Agri & Infra fund invest their corpus in mid & small cap companies associated to agriculture and infrastructure sectors. This makes it more risky than large cap oriented, infrastructure based fund. In recent market down fall this fund’s return has declined more than large cap oriented infrastructure based funds as well as category return. Infrastructure based fund may perform better in long period.
JM Core-11 Series-1 fund is also a mid cap oriented fund and it has also failed to perform up to category average. Since these are new funds, their long term performance record is not available. It will be too early to comment on these funds. Take a close watch on their performance regularly if you want to remain invested.
It is always advisable to invest in proven funds which have sound track record over periods. People generally get attracted towards new fund offer (NFO) due to its low NAV. Value Research Analysts pick will include some mid cap oriented funds - Reliance Growth, Sundaram BNP Paribas Select Midcap or Magnum Multiplier Plus.