The Hindu Business Line : JM Mutual to rename petro fund, broadbase strategy

JM Basic, one of the two schemes of its kind (other being UTI MF's Petro Fund), will henceforth be able to invest in a wider range of companies that currently operate in the energy sector. The fund, which has invested in stocks such as Reliance Industries and some of the leading oil PSUs, now hopes to include in its ambit companies such as Reliance Energy and Power Trading Corporation.

The fund house plans to modify the fundamental objectives of the scheme to suit its latest proposal. "JM Oil & Energy Fund will be able to hold some very promising companies in its portfolio, ones that cover important aspects of the energy cycle," said Mr Aditya Palwankar of JM Mutual Fund, adding that an outfit like Reliance Industries will still continue to be treated seriously by the fund manager. The investment universe will include electric utilities and electrical equipment manufacturers as well.

JM Basic, which currently has an asset base of about Rs 40 crore, is at the moment being positioned as a fund that should appeal to a contrarian investor, maintained Mr Nandkumar Surti, CIO of JM Mutual Fund.

"The popular perception of petro companies has changed in the wake of the election results, leading to a decline in prices. A contrarian would do well to focus on an offer like JM Basic," he noted.

Some of the other themes that may now come up for consideration are gas transportation and power trading. Rival UTI Petro Fund, which has a relatively bigger asset base of around Rs 285 crore, has in its latest portfolio companies such as Gujarat Gas, Petronet, Castrol India and even Balmer Lawrie Investments.