Fund house JP Morgan Asset Management is launching a new open-ended diversified equity scheme that hopes to take advantage of the domestic economy as it turns the corner on its cyclical recovery.
The offer period for the India Economic Resurgence Fund is January 13-27, with a minimum application amount of ₹5,000. The high-risk fund has options for systematic investment, transfers and withdrawals, and charges a 1 per cent exit load if the units are redeemed or switched out within 18 months of allotment.
Right hour The fund will be benchmarked against the BSE 200 index. Backed by growing retail interest in its existing equity funds, JP Morgan hopes to garner ₹300 crore during the offer period.
The scheme has been designed as a multi-cap diversified equity fund and will invest in businesses “geared towards cyclical growth acceleration and structural reforms”. Nandkumar Surti, Managing Director and CEO, JP Morgan Asset Management, believes the time is right to enter the equity market, ahead of an interest-rate cut that is expected to kick-start the economy again. The optimism is fuelled by expectations of corporate profits returning to the long-term average of 5 per cent.
Supreet Bhan, Head, Retail Sales, said the fund will seek out “the best ideas across market-caps with high active sectoral bets. We’re even willing to go overweight on sectors relative to the benchmark.” The fund is suitable for investors with long-term horizons, which will even out higher volatility. JP Morgan believes the country will return to its pre-2008 GDP growth rates and that growth opportunities lie in investment-led industries.