VR Logo

Lacking Foresight

All equity schemes from JM Mutual Fund are languishing at the bottom of its category…

Sponsored by JM Financial group, JM Financial Asset Management was launched in September 1994. However, this AMC has oriented its business in opportunistic phases with its due share of external business cyclicity. In its early phase this AMC had a complete basket of a diversified equity, balanced and income funds including the then favourite JM Equity. However, over time it changed colours to focus on debt funds and was identified as a fund house that focused on debt fund offerings. In recent years the opportunistic trait was visible again during the bull run leading to the fall in 2008; the fund house launched several funds between 2003 and 2007.
These schemes were able to ride the bull markets with many of them topping the charts during this phase. The approach to fund management was based on taking concentrated bets in growth stocks, which worked during the upward movement of the stock markets, but had nothing fundamentally in place to check the fall when the markets tanked. JM Basic, JM Core 11 and JM Multi Strategy did well in this phase. All the equity schemes from this fund are languishing at lows having eroded investor wealth as well confidence. There have been more redemptions since 2008 in the fund schemes from this fund house than fresh collection, but a rise in markets could just tilt things in its favour.