JM Financial Mutual Fund Introduces JM Short Duration Fund

Aug 11, 2022

JM Financial Mutual Fund has introduced a new scheme – JM Short Duration Fund

An open-ended short duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years. A moderate interest rate risk and moderate credit risk.

Accordingly, the scheme will endeavour to generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. Investors are required to read all the scheme related information set out in the offer documents carefully.

However, there can be no assurance that the investment objectives of the scheme will be realized. The scheme does not guarantee/ indicate any returns.

Under normal circumstances, JM Short Duration Fund will hold an allocation of 0% to 100% of its assets in Debt and Money Market instruments (including securitised debt). The Scheme shall invest in the debt securities issued by REITs and INvITs, subject to compliance with all applicable regulatory provisions.

As per the Scheme Information Document, the fund will invest in a portfolio comprising predominantly of debt instruments (including securitized debt) which are rated not below investment grade and money market instruments. The focus of the scheme is to achieve the investment objective of the scheme through investments in a combination of debt and money market instruments having varied yields and maturity profile. The Investment strategy of the Scheme would be such that the Macaulay Duration of the portfolio would be between 1 and 3 years.

The scheme is being positioned as a product having the essence of both debt and money market schemes. As such the product is being positioned as intervening product between the long-term debt scheme and liquid scheme. Further, the composition of maturity profile of the instruments may vary substantially from time to time depending upon the changes due to purchase and repurchase of units.

JM Short Duration Fund’s performance will be benchmarked against CRISIL Short Duration Fund BII Index.

The scheme will be managed by Mr. Gurvinder Singh Wasan and Ms Shalini Tibrewala.

The NFO opens for subscription on August 10, 2022 and closes on August 22, 2022. The scheme will reopen for continuous sale and repurchase on September 06, 2022.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of any amount thereafter.

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

[Read: Is JM Short Duration Fund a Worthwhile Investment Proposition?]