Launched at a time of tremendous turmoil in the markets, the JM Small & Mid-cap Fund is the first equity offering from JM Mutual Fund since Sandip Sabharwal took over as CIO (equity).
The scheme aims to provide capital appreciation by primarily investing in small- and mid-cap stocks. The investments into small-caps will be in the 20-40 per cent range and 20-80 per cent range for mid-caps.
A small-cap stock is defined as any company which has a market capitalisation of less than 10 per cent of the market cap of the last stock in the S&P CNX Nifty. A mid-cap stock is defined as any company which has a market cap less than the market cap of the last stock in the S&P CNX Nifty but greater than 10 per cent of it.
The equity portion of the portfolio will account for 65-100 per cent of the total investments while the debt portion (money market instruments, debt securities, securitised debt) will account for 0-35 per cent of the portfolio.
Type of fund: Open-ended, diversified equity
Issue opened: March 9, 2007
Issue closes: April 7, 2007
Minimum Investment: Rs 5,000
Options: Growth, Dividend Reinvestment, Dividend Payout
Entry load: 2.25 per cent
Exit load: 1 per cent if redeemed within 6 months of allotment
Loads for SIP: No entry load, exit load of 2.25 per cent if redeemed within 1 year of allotment