Money Today—Plexus Management new fund evaluation
JM Multi Strategy Fund
Fund facts
Scheme type: Open-ended equity fund
Minimum investment: Rs 5,000; unit price: Rs 10
Loads:
Entry load: 2.25%
Exit load: 1% (within 1 year)
Options: Growth and dividend (payout and reinvestment)
Investor grievances: Harish Kukreja; Tel: (022)-39877777; E-mail: investor@jmfinancial.in
Fund stats
Objective: To provide capital appreciation by investing primarily in stocks through a strategy based on the future market scenario. The fund aims to vary its portfolio based on the expected outlook.
Benchmark: BSE 500
Fund managers: Sandip Sabharwal
Asset allocation:
65-100% Equity & equity-related securities of companies in banking and financial services
0-35% Debt
Comparable existing schemes:
Fund Name: DWS Investment Opportunity Fund
NAV* (Rs): 30.21
1-year (%): 12.22
3-year (%): 30.67
*NAV as on 22 August;. Source: NAVIndia
Fund prognosis
Idea distiller: The equity market has witnessed excessive volatility. The fund aims to use apt strategies to ensure continued market-beating performance in both up and down cycles of the volatility spectrum.
Fund house report: JM Financial Mutual Fund manages assets worth Rs 11,050 crore across 78 schemes (as on 31 July ‘08)
Returns profile: 2/5
Risk profile: 4/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: Medium
Return possibility: Medium
Risk: High
Operability/complexity: High
Investor takeaways
Who should apply: This is definitely not for a low-risk taker or a risk-averse individual. For, even though the idea is interesting, the fund manager has not lived up to his potential in recent times, making it risky to bet on the fund.
Comments: The fund structure is such that the fund manager needs to get it right every time, which is extremely difficult even for the best manager. The portfolio will witness frequent churning, leading to high operational costs, which is avoidable.
