JM Financial Mutual Fund Expands Portfolio with Small Cap Fund Launch

May 28, 2024

JM Financial Mutual Fund has launched JM Small Cap Fund.

JM Small Cap Fund is an open-ended equity scheme predominantly investing in small cap stocks

The investment objective of the Scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related securities of small cap companies, as defined by SEBI. However, there is no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/indicate any returns.

Under normal circumstances, JM Small Cap Fund will hold an allocation of 65% to 100% in Equity & Equity related instruments of small cap companies, 0% to 35% in Equity and equity related instruments of other than small cap companies, 0% to 35% in Debt & Money Market instruments, 0% to 10% in Units issued by REITs and InvITs and 0% to 10% in Units of Mutual Fund Scheme.

[Read: Small Cap Index Near an All-time High: Should You Rejoice or Worry?]

JM Small Cap Fund aims to provide long term capital appreciation by investing in a diversified portfolio of small-cap companies across sectors.

The investment strategy is to invest in companies that have the potential to become Midcap & Large Cap companies over a long term horizon. These companies are in the initial phase of growth & if able to successfully scale up their business could generate significant capital appreciation.

The Scheme will focus on bottom up approach to find stocks with high growth potential. The Scheme will consider the below criteria’s for company selection:

  • Companies with reasonable growth outlook & ability to scale the business over multi year period

  • Strong Balance Sheet & Cash Flow

  • Quality Management & good corporate governance practices

  • Efficient Capital Allocation

  • Reasonable Valuations

JM Small Cap Fund is benchmarked against Nifty Smallcap 250 TRI.

JM Small Cap Fund will be managed by Mr Asit Bhandarkar, Mr Chaitanya Choksi and Mr Gurvinder Singh Wasan.

JM Small Cap Fund is open for subscription from May 27, 2024 to June 10, 2024. The fund will reopen for continuous sale and repurchase within 5 days from the date of allotment.

The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth option and Income Distribution cum Capital Withdrawal.

The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1 thereafter.