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Another NFO from JM Mutual Fund


This time we have one fund house coming out with two NFOs simultaneously. J M Financial Mutual Fund is launching two sector funds: J M Financial Services and J M Telecom are both sector funds. The fund house already has two sector funds - J M Auto Sector Fund and J M Healthcare Sector Fund - in its kitty.

J M Telecom will invest in the telecom sector while J M Financial will invest in the banking, financial institutions, NBFC and housing finance sectors.

At any time, the fund will have a minimum equity investment of 80 per cent and a maximum of 100 per cent of the portfolio. The debt and money market allocation is 0-20 per cent while securitised debt is at 0-20 per cent too.

The fund will also invest in derivative instruments as and when such opportunities arise. The objective will be to either provide better returns or for hedging and portfolio rebalancing, to the extent of 40 per cent of the portfolio (net assets including cash).

Snapshot
Type of fund: Open-ended equity
Benchmark: BSE Finance Index / BSE Telecom Index
Fund manager: Sandeep Neema
Scheme options: Growth Plan / Dividend Plan along with reinvestment and payout options
Offer opened: November 2, 2006
Offer closes: November 20, 2006
Minimum investment: Rs 5,000

During launch
Entry load: 2.5%
Exit load: 1% if redeemed within six months from date of allotment

Post launch
Entry load: 2.25%
Exit load: Nil

No entry load for SIP but exit load of 2.25 per cent if units are redeemed within a year.