JP Morgan Asset Management India has launched JP Morgan India Corporate Debt Opportunities Fund, an open ended income scheme that will generate regular income and capital appreciation by investing largely in corporate debt.

The new fund offer opened on Monday and will close on September 17.

The scheme is an actively managed debt fund wherein the AMC takes a view on interest rate movements, liquidity conditions and other macroeconomic factors affecting interest rates. It would identify and invest in quality credits that offer an attractive risk-return reward relative to sovereign instruments with the objective to generate accrual income or in yield pickups which offer a better spread for similar credits.

Namdev Chougule, Head of Fixed Income, JP Morgan Asset Management, said the Indian economy is at the inflection point with growth bottoming out, credible central bank, macro stability and strong political mandate.

The disinflationary trend in the economy should bode well for monetary easing and may lead to a trend of falling interest rates in medium term. The rates across the curve could fall meaningfully over the next 18 to 24 months. This is certainly an opportune time for debt investors, he said.

Nandkumar Surti, Managing Director, JP Morgan India, said the biggest challenge always is that most investors tend to look at past returns before making an investment decision, rather than having a futuristic view.

The biggest positive for debt markets unlike equity is that the Central Bank itself is focused on minimising volatility as it directly impacts economic activity. Investors must understand that volatility is temporary in bond markets, he said.

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