• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Shashi Ashiwal

Mr Krishnamurthy Vijayan (right), CEO, JP Morgan Asset Management India Pvt Ltd, with Mr Harshad Patwardhan, Investment Manager-Equity, at a press conference to launch the "JP Morgan India Alpha Fund" in Mumbai on Tuesday. —

Our Bureau

Mumbai, July 29

JP Morgan Asset Management India Pvt Ltd on Tuesday announced the launch of its JP Morgan India Alpha Fund. The fund will open for subscription on July 31 and close on August 29.

The main objective of the scheme is to generate absolute returns in all sorts of markets, said Mr Harshad Patwardhan, Investment Manager - Equity at JP Morgan Asset Management India Pvt Ltd.

“The strategy is meant to act as an alternative equity investment targeted at the investor who does not want to take a directional call on the market,” added Mr Patwardhan.

In the JP Morgan Alpha Fund, the portfolio would be constructed in such a manner which will reduce the market risk by investing in “stocks or derivatives with pair trades”. The fund would invest in stocks or derivatives which would represent both positive and negative conviction on ideas and seek to benefit from relative out performance. The scheme would try to remain market neutral in rupee terms re-balancing the “paired- trades” daily. The paired trades can be done on both stocks and indices.

The fund will be benchmarked against the Crisil Liquid Fund Index. Mr Krishnamurthy Vijayan, Whole-time Director and CEO of JP Morgan Asset Management India Pvt Ltd said that the fund hopes to collect up to Rs 400 crore from the new offer.

This scheme is a complement to the existing long-only portfolio as it endeavours to reduce the overall risk of the portfolio because of its investment strategy. The strategy would be an ideal fit for investors who would like to have an exposure in the equity market but at the same time are not confident from a market outlook standpoint.

The scheme would allocate a minimum of 40 per cent and a maximum of 100 per cent of its assets in equity derivatives. It will allocate a minimum of 25 per cent and a maximum of 100 per cent in equity and equity-related securities and up to 35 per cent in debt, money market instruments and mutual fund units. The minimum application amount is Rs 5,000 per application and in multiples of Re 1 thereof. The scheme has both growth and dividend options.

More Stories on : New Fund Offer

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line