JM Mutual has announced the launch of two new open-ended sector funds - JM Auto Sector Fund and JM Healthcare Sector Fund. The initial offer for both the funds would be open from June 1 to June 9, 2004. The minimum application amount is Rs 5,000 for each fund. An entry load of 2.25 per cent would be charged for investments upto Rs 5 lakhs and for investments above Rs 5 lakhs, entry load is nil.
Both Auto Sector and Healthcare Sector funds would invest 90-100 per cent of their net assets in equity and equity related instruments of the respective sector while 0-20 per cent of the net assets would be invested in debt securities, money market instruments and cash.
JM Auto Sector fund will be the second such fund in India. The first of its kind was launched by UTI - UTI Auto Sector - in April 2004. The JM Healthcare sector fund would be the fifth pharma sector fund in India. Recently, Reliance Mutual Fund has also launched a pharma sector fund - Reliance Pharma Fund - and its IPO closes on May 26, 2004.
Currently, JM has just one sectoral fund - JM Basic, which invests in the petroleum sector.