FMP Plus

Offer open: Till 29 August 2008
Scheme type: Interval fund
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: 2.25% Exit load: 1% (before 6 months)
Options: Growth and dividend (payout and reinvestment)
Investor grievances: Anutosh Bose; Tel: (022)-22817222

Fund stats

Objective: To achieve a higher return than is available on short-term instruments through various strategies of buying and selling equity and equity-linked securities, including derivatives. The strategies would be designed to minimise market exposure with a medium-to-long-term horizon
Benchmark: Crisil Liquid Fund Index
Fund managers: Harshad Patwardhan, Amit Gadgil, Nandkumar Surti & Namdev Chogule
Asset allocation: 65-100% Equity Derivative, 0-35% Equity-Related Securities, 0-35% Debt, Money Market Instruments and Mutual Fund
Comparable existing schemes: None

Fund prognosis

Idea distiller: The fund tries to distinguish itself by proposing a slightly higher risk but more robust structure for delivering higher returns than those delivered by the FMPs
Fund house report: JP Morgan manages assets worth Rs 3,054 crore (as on 31 July 2008)
Returns Profile: 3/5
Risk Profile: 4/5
Fund managers’ report: Performance of fund managers
Returns Profile: 3/5
Risk Profile: 4/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: Medium
Return possibility: Medium
Risk: Low
Operability/Complexity: High

Investor takeaways

Who should apply: If you are not interested in fixed maturity plans and think debt schemes are still iffy, this is your ticket. The scheme is likely to give returns similar to those of FMPs, but there is also a possibility of much higher returns.
Comments: Though it is a low-risk scheme, remember that it is not completely risk-free. There are no risk-free products, except fixed deposits.