JM Financials Mutual Fund has approved the change in fundamental attributes of the scheme and its conversion from an Open ended sector scheme to an open ended equity scheme vided their resolution dated 7 April 2009 and 15 April 2009 respectively. The change in fundamental attributes include change in name, investment objective, investment strategy, benchmark index, asset allocation and other related matters of JM Auto Sector Fund. Accordingly the following changes are proposed in JM Auto Sector Fund with effect from 23 May 2009.
Details about the changes:
1. Change of name of the scheme to: JM Mid Cap Fund
2.Change of investment objective of the scheme: The investment objective of the scheme will be to generate long term capital growth at a controlled level of risk b predominantly investing in Mid Cap companies. Consequent to the above changes in the investment objective of the scheme, the scheme will undergo a change from an open ended sector scheme to an open ended equity scheme.
3. Change of asset allocation pattern of the scheme: Under normal circumstances the asset allocation of the scheme would invest upto 65%-100% in equity and equity related instruments with high risk profile and invest upto 35% in money market instruments / debt securities.
4. Investment Strategy: JM Mid Cap fund, as the name suggests will be a purely mid cap fund. It is an open ended growth scheme which focuses on investing in the midcap segment of the market with a disciplined investment approach. Being a growth oriented scheme, the scheme seeks to invest a substantial portion of its portfolio in equity and equity related instruments. Under normal circumstances, around 65% of the corpus shall be deployed in such securities and the balance in debt/money market instruments. However, whenever the valuations of securities rise in a sharp manner, the scheme will take advantage of trading opportunities presented and in such a scenario, the scheme will have a high turnover rate. The scheme will endeavor to use a mix of top down and a bottom up approach.
The strategy will be to identify stocks that can demonstrate strong growth over 3 year's horizon on the back of scalable business. The scheme seeks to achieve long-term growth of capital at controlled level of risk by primarily investing in midcap stocks. The midcap segment comprises mostly of companies that have been able to sustain themselves in the initial phases of growth. Since may companies out of this segment would show higher growth in future and move towards the large variety of business to choose from. Further, this segment is relatively under researched and hence offers an excellent opportunity for bottom-up focus thus enabling the spotting of winners ahead of the market.
5. Benchmark: The benchmark of the scheme would be – CNX Mid Cap Index
6. Fund Manager: The scheme would be managed by Mr. Sanjay Chhabaria
Details about the changes:
1. Change of name of the scheme to: JM Mid Cap Fund
2.Change of investment objective of the scheme: The investment objective of the scheme will be to generate long term capital growth at a controlled level of risk b predominantly investing in Mid Cap companies. Consequent to the above changes in the investment objective of the scheme, the scheme will undergo a change from an open ended sector scheme to an open ended equity scheme.
3. Change of asset allocation pattern of the scheme: Under normal circumstances the asset allocation of the scheme would invest upto 65%-100% in equity and equity related instruments with high risk profile and invest upto 35% in money market instruments / debt securities.
4. Investment Strategy: JM Mid Cap fund, as the name suggests will be a purely mid cap fund. It is an open ended growth scheme which focuses on investing in the midcap segment of the market with a disciplined investment approach. Being a growth oriented scheme, the scheme seeks to invest a substantial portion of its portfolio in equity and equity related instruments. Under normal circumstances, around 65% of the corpus shall be deployed in such securities and the balance in debt/money market instruments. However, whenever the valuations of securities rise in a sharp manner, the scheme will take advantage of trading opportunities presented and in such a scenario, the scheme will have a high turnover rate. The scheme will endeavor to use a mix of top down and a bottom up approach.
The strategy will be to identify stocks that can demonstrate strong growth over 3 year's horizon on the back of scalable business. The scheme seeks to achieve long-term growth of capital at controlled level of risk by primarily investing in midcap stocks. The midcap segment comprises mostly of companies that have been able to sustain themselves in the initial phases of growth. Since may companies out of this segment would show higher growth in future and move towards the large variety of business to choose from. Further, this segment is relatively under researched and hence offers an excellent opportunity for bottom-up focus thus enabling the spotting of winners ahead of the market.
5. Benchmark: The benchmark of the scheme would be – CNX Mid Cap Index
6. Fund Manager: The scheme would be managed by Mr. Sanjay Chhabaria
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