JM MF launches Small and Mid Cap Fund - Not sure whether the timing is right

JM Financial Mutual Fund has announced the launch of its JM Small & Mid-cap Fund. The scheme seeks to provide capital appreciation by primarily investing in small and mid cap stocks. The portfolio will include those companies, which have the potential to become tomorrow’s bluechips.

Speaking on the occasion, Nimesh Kampani, Chairman, JM Financial Group, said, “The Indian economy has shown robust secular growth for the last decade and this trend is expected to continue, fueling the growth of Indian companies. The engine of economic growth is shifting the momentum from large cap stocks to small and mid-cap segments.” JM Small & Mid-cap Fund is an open-ended equity oriented scheme providing regular and institutional plans with growth and dividend options in each plan. The scheme will invest in small cap stocks in the range of 20% - 40% and in mid-cap stocks in the range of 20% - 80%. An individual investor can start by investing as little as Rs 5000. There is no upper limit for investment.

Sandip Sabharwal, CIO of JM Financial Mutual Fund added, “The small and mid-cap stocks are generally under-researched and under-owned by institutional investors but these stocks have a huge demand and re-rating potential to give medium to long term growth to an investor's portfolio. We would identify and research the companies poised for take–off on behalf of our investors and constantly monitor the performance to give the best possible returns.”

The New Fund Offer for JM Small & Mid-cap Fund commences on March 9 and closes on April 7.