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Ordinary Aspirant


JP Morgan has come out with its third equity diversified offering, an open-end equity-linked tax saving scheme - JP Morgan Tax Advantage Fund.

Primarily a diversified equity fund, it will seek to generate long-term capital appreciation from equity and equity related securities. They companies that will fall within the scope of the fund would include those with strong growth potentials or those with a special product which has a particular market niche or those undertaking corporate restructuring. There will be no particular biases towards any market capitalization, size or sector.

Fund Manager:
JP Morgan has a unique way of assigning fund managers to its equity schemes. The AMC assigns four managers to each scheme. And like its previous two equity diversified funds, this fund will have four managers as well.

The equity portion will be managed by Mr. Harshad Patwardhan who has 15 years of experience. Before joining JP Morgan, he worked at Deutsche Mutual Fund as a senior analyst. Mr. Amit Gadgil will be assisting him. He has about six years of work experience in accounting and the financial service sector.

Mr. Nandkumar Surti is appointed to manage the debt portions. He has over 18 years of experience in the financial services sector in India. Mr. Namdev Chougule, who will be the associate fund manager of the scheme, has over seven years of experience as dealer, analyst and fund manager for several leading mutual funds and banks.

AMC Performance:
JP Morgan Mutual Fund started its operations in India in April 2007. Since then the AMC has launched two funds in its equity category, both of which could not curtail its fall during the market turmoil. JP Morgan India Equity Fund's year-to-date (YTD) return is -54.21 per cent which is in line with the category fall. The other fund, JP Morgan India Smaller Companies Fund's YTD return is -65.65 per cent against the category return of -54.86 per cent.

Suitability and Recommendation:
The fund house, being a new player, has a long way to go to prove its worth in India. At this point of time investor's have been extremely choosy about their investments. Moreover, 33 similar funds are already on offer, of which some have excellent track records, thus this new fund may not find many takers.

Basic Details
NFO Opens: December 18, 2008
NFO Closes: January 16, 2009
Benchmark: BSE -200 Index
Minimum Application Amount: Rs500
Lock In Period: 3 years
Options: Growth & Dividend (Payout & Reinvestment)
Entry Load: 2.25 per cent, for investment of less than Rs5 crore; Nil, for investment above Rs 5 Crore and above.
Exit Load: Nil