JM Financial Mutual Fund (JMFMF) has launched an open-ended equity mid-cap scheme. In a statement, the company said that JM Midcap Fund will predominantly invest in mid-cap stocks.
The New Fund offer (NFO) of JM Mid Cap Fund will open for subscription on October 31, 2022, and close on November 14, 2022.
“India with approximate $2000 per capita income may see sustainable growth in the consumption story and related sectors. We have seen this trend in both China and South Korea which have demonstrated rapid growth for a decade after crossing the per capita income of $2000. Indian Midcaps offer a wider variety of sector allocation in a more balanced manner compared to Nifty. Nifty’s concentration around 2-3 sectors makes it less diversified compared to the Midcap Index,” Satish Ramanathan, CIO – Equity, JM Financial Asset Management Ltd. said while commenting on the Mid Cap Fund.
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“New economy and higher growth sectors like QSR, pathological labs, AMCs and industrials are fairly represented in Midcap Index compared to Nifty. Valuation-wise, midcaps currently offer a very good opportunity for investors to build a long-term portfolio,” he added.
According to Ramanathan, this midcap offering will have an i-STeP option to invest during the NFO period in which the investors have the option to stagger their investment.
“JM Midcap Fund is an important addition to our bouquet of funds and we believe the fund is expected to take advantage of the India story over the next few decades,” said Amitabh Mohanty, MD & CEO, JM Financial Asset Management Ltd.
- Growth Focus: JM Midcap Fund aims to invest in high-growth companies benefiting from demographic and structural trends.
- The AMC said it will follow a process-driven stock selection and portfolio construction along with well-defined guardrails for risk management and a proprietary GeeQ model.
- The AMC also said that on softer aspects like corporate governance, management quality and their execution along with experienced hands from the market who have managed investments in multiple market cycles.