JM Mutual Fund yesterday unveiled a package of five schemes involving equity, debt, sectoral and special tax savings schemes. The Fund also announced dividends for all its existing ones.
The proposed schemes include the sectoral fund called the JM savings scheme. JM Mutual also announced the launch of a Basic Fund, which opened on March 25, while JM Index Fund and JM Children Scheme will be launched by mid-April. The other two schemes JM Pension Fund and JM Infrastructure Fund await clearance from the ministry of finance.
JM Mutuals index fund would be the first domestic one. UTI had earlier launched an offshore index fund in January. This open-ended index fund will have two plans: Plan A, which will track the NSE-50 index and Plan B, which will track the BSE Sensex.
Interestingly, the sensex, which crashed by 302 points on March 31, had a telling blow on the year-end net asset value (NAV) of most mutual fund schemes, including J M Mutual.
This can be seen through the following data: the NAV of J M Equity (dividend plan) fell from Rs 10.22 on March 28 to Rs 9.44 on March 31, while in the growth plan, the NAV has dipped from Rs 9.15 to Rs 8.76. In the case of the balanced fund (DP), the NAV has fallen from Rs 11.11 to Rs 10.93 in the same period.
Nimesh Kampani, chairman of JM Trustee Company, said an individual investor would need to invest a minimum of Rs 23 lakh to buy all the index scrips. Instead, an investor with a minimum subscription fee of Rs 1,000 could now buy all the index scrips by investing in this fund, he added.
JM Infrastucture Fund will invest in eligible issue of capital which includes power, telecom, cement and railways. JM Basic Fund is a 15-year close-ended growth scheme with an option for repurchase every year at NAV after three years from the date of allotment.
The scheme will be listed on the NSE within six months from the date of closure of subscription. It would invest in the petrochemical sector and is the first of the sectoral schemes launched by the Fund. The AMC announced dividends for all its existing schemes, wherein, the dividend plan of JM Equity Fund where a dividend of 6 per cent was announced. For JM Balanced, the dividend amount was 17 per cent which included a half-yearly dividend of 8 per cent. An 18 per cent dividend was announced for JM Liquid.
