Mutual Fund News : JM Mutual Fund Introduces JM Midcap Fund

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JM Mutual Fund has Introduced a new scheme – JM Midcap Fund

It is an open-ended equity scheme predominantly investing in mid cap stocks.

Accordingly, the investment objective is to provide long-term capital appreciation/income by investing predominantly in Mid-Cap companies. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, JM Midcap Fund will hold an allocation of 65% to 100% of its assets in Equity and Equity Related Instruments of Mid Cap companies, 0% to 35% in Equity and Equity Related Instruments other than above, 0% to 35% in Debt Securities and money market instruments (including TREPS) and 0% to 10% in Units issued by REITs and InvITs.

As per the Scheme Information Document, JM Midcap Fund shall follow a predominantly Mid cap strategy with a minimum exposure of 65% to Mid-Cap stocks. The Scheme may also seek participation in other equity and equity related securities to achieve optimal portfolio construction. The aim of equity strategy will be to predominantly build a portfolio of mid-cap companies which have:

  • Reasonable growth prospects

  • Sound financial strength

  • Sustainable business models

  • Acceptable valuation that offers potential for capital appreciation.

The Scheme aims to maintain a reasonably diversified portfolio at all times. The Scheme may also invest a certain portion of its corpus in debt and money market securities. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.

JM Midcap Fund’s performance will be benchmarked against NIFTY MIDCAP 150 (Total Return Index)

The scheme will be managed by Mr Satish Ramanathan and Mr Chaitanya Choksi

The NFO opens for subscription on October 31, 2022 and closes on November 14, 2022. The schemes will reopen for continuous sale and repurchase on November 28, 2022.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.

[Read: JM Midcap Fund: Sailing to Benefit from the Growth Potential of Midcaps]