JPMorgan Asset Management India has announced the launch of JPMorgan India Equity Savings Fund, an open ended income scheme that brings you the Power of Three, providing a foundation for the potential of Equity adding to investments as well as the prudence of Fixed Income assets and Arbitrage opportunities.
The underlying investment philosophy of this fund is to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments, the fund house said.
Further the fund house said, "Investing in the fund provides potential for growth by participating in the long term prospects of Indian equities. It aims to provide regular income from the fixed income investment portion of the portfolio and is less volatile. A disciplined process is used to buy underweight assets that are low in value and sell overweight assets that are highly appreciated. Implementing this constant rebalancing process would enhance the returns of a portfolio while maintaining a consistent and appropriate level of risk. The Fund is treated similar to equity funds for tax purposes and has the potential to deliver better post-tax returns at a similar level of risk compared to hybrid/ MIP funds."
Elaborating on the NFO, Nandkumar Surti, MD&CEO, JPMAM India said, ''There is mounting evidence that the level of economic activity is picking up. This will improve the topline growth and result in faster earnings growth for corporate India. Over the next few years we are positive that the Indian economy will deliver returns well above its long term CAGR return. JPMorgan India Equity Savings Fund is made for investors who look to diversify their portfolio to obtain a lower-risk investment than a pure equity fund, but with greater prospects for growth than a pure fixed income fund.''
Namdev Chougule, head, Fixed Income, JPMAM India said, ''We are introducing the JPMorgan India Equity Savings Fund at a favorable time for debt investors. Right now the Indian economy is at an inflection point. Tighter fiscal policy and focus on controlling inflation will bode well for monetary easing. This may lead to a trend of falling interest rates in medium term. This product is best suited for investors who wish to gain from the current macroeconomic environment.''
Amit Gadgil, Fund Manager-equity, JPMAM India said, "We believe that this is an opportune time for investors to be invested in equities. We expect improving macro indicators will pave the way for strong corporate earnings growth over the next 3-5 years. Further, such an improvement in earnings momentum is likely to result in valuation re-rating for the Indian markets. As such, we believe Indian equities will deliver good returns in the medium to long term."
