JM Financial plans new equity fund

JM Financial plans new equity fund


Mumbai: JM Financial Asset Management Pvt Ltd on Tuesday, 25 September, filed papers with Sebi to launch a closed-end equity fund that will invest in a maximum of 11 stocks.

JM Core 11 Fund “will have a concentrated portfolio with not more than 11 stocks in the portfolio with each stock being invested to the extent of 9.09% of the NAV (net asset value) of the scheme," the fund house said in its offer document.

The fund would invest at least 65% of the assets in equities and the rest in debt and money market instruments.

JM Financial, which saw assets jump about 11% to Rs4,100 crore in the year to end-August, is trying to strengthen its equity fund offerings.

Its contra fund, which closed for subscription in August, collected Rs925 crore to become the largest equity fund for the asset manager.

JM Basic Fund — India’s top performing fund in 2007 with gains of 57% — has seen its assets swell 50 times in the last eight months, data from fund tracker ICRA Online Ltd showed.

Last week, the fund house filed papers to launch a multi-strategy equity fund.