JM Financial Mutual Fund launches NFO JM Midcap Fund

According to the press release, the fund aims to invest in high growth companies benefiting from demographic and structural trends.

Commenting on the launch, Satish Ramanathan, CIO – Equity, JM Financial Asset Management Ltd. said, “India with approximate $2k per capita income may see sustainable growth in the consumption story and related sectors. We have seen this trend in both China and South Korea which have demonstrated rapid growth for a decade after crossing the per capita income of $2k. Indian Midcaps offer a wider variety of sector allocation in a more balanced manner compared to Nifty. Nifty’s concentration around 2-3 sectors makes it less diversified compared to the Midcap Index. New economy and higher growth sectors like such as pathological labs, asset management companies and industrials are fairly represented in Midcap Index compared to Nifty. Valuation-wise, midcaps currently offer a very good opportunity for investors to build a long-term portfolio. Considering the global factors and the need to address the volatility, this Midcap offering will have an i-STeP option to invest during the NFO period in which the investors have the option to stagger their investment.”

Speaking on the launch of the product, Amitabh Mohanty, MD & CEO, JM Financial Asset Management Ltd. said, “JM Midcap Fund is an important addition to our bouquet of funds and we believe the fund is expected to take advantage of the India story over the next few decades. I am sure our strong equity team led by Satish Ramanathan will strive to deliver risk-adjusted returns basis going forward.”