JP Morgan makes mutual fund foray

Global money manager JP Morgan has launched its first domestic mutual fund scheme JP Morgan India Equity Fund.

The open-ended scheme would invest in equities and equity-related securities, including derivatives, to generate income and long-term capital growth.

JP Morgan has been investing in Indian markets since 1989 and manages $6 billion worth assets in the country.

The amount was invested in a select group of about 54 domestic stocks through five India-dedicated funds. The launch of the new scheme marks the fund house's entry into the mutual fund business in the country.

The minimum investment under the scheme would be Rs 5,000 and will attract an entry load of 2.25 per cent. The new fund offer would be from April 19 to May 18. Harshad Patwardhan and Amit Gadgil would be the fund managers.

The fund house has a portfolio of large-cap stocks for its India-focussed funds. It would be following similar portfolio for the India Equity Fund, but could also look for potential mid-cap stocks.

"We will grow the Indian business rapidly, providing investors with the same level of investment expertise and service that our clients in other parts of the world get. We see the JPMorgan India Equity Fund as the first step to doing this," Krishnamurthy Vijayan, CEO, JPMorgan Asset Management India Pvt Ltd said.

The fund house plans to come up with education programmes for distributotors, aimed at providing additional value to their overall business model.