J M Mutual to launch auto, healthcare funds

J M Mutual Fund said it will be cautious on investing in stocks that are policy dependent and has decided to concentrate on the pharmaceutical, cement, automobile and ancillaries and technology stocks.

J M Mutual Fund will launch two investment objective funds "" the JM Auto and Ancillaries Fund and the JM Health Care Fund "" in June to tap the potential of the pharmaceutical and auto sectors in the country.

J M Mutual Fund, which has assets under management of over Rs 4,269 crore as of March 31, 2004, aims to increase this to over Rs 6,000 crore by the end of the current fiscal year.

As of today, the assets under management of the company stands at Rs 4,500 crore.

Officials of J M Capital Management Pvt Ltd were in Gujarat to promote the forthcoming funds.

"J M Mutual Fund will be cautious on investing in stocks of industries that are policy-dependent. Investments will be made in sectors where there is a stable and steady cash flow," said Nandkumar Surti, senior vice president, investments, J M Mutual Fund.

Surti said the company will focus on cement, pharmaceutical, technology and auto and ancillaries sectors for making investments.

Aditya Palwankar, fund manager, equities, said two sectors that appear to be heavily dependent on government policies, especially with the new coalition supported by the Left Front assuming office at the Centre, are banking and oil.

"Treasury profits of banks are quickly ending. Unless oil prices are hiked, oil sector giants will not perform as per expectations.

"The future of both these sectors depend heavily on policy changes although we are very bullish about the oil sector," Palwankar said.

Palwankar said by the year-end, J M Mutual intends to have six to eight theme funds on which it can concentrate adequately.

"We would like to launch up to eight theme funds, providing investors with just the right array of options for their individual needs," Surti said.

J M Mutual Fund is one of India's first private sector mutual funds. It commenced operations in 1994 and has an excellent track record in the debt segment.

The J M Income Fund and the J M High Liquidity Fund of the company have been rated 'AAAf' by the rating agency Crisil.

Other products include the J M Short Term Fund, J M G-Sec Fund, J M Floater Fund, J M Balanced Fund and J M Equity Fund.