JM Financial, one of India’s leading financial services groups, offers an array of integrated and diversified financial services to corporations, financial institutions, high-net-worth individuals, and retail investors.
The Group’s primary businesses include Investment Banking, Mortgage Lending, Alternative and Distressed Credit and Asset Management, Wealth Management, and Securities business (Platform AWS).
As of June 30, 2022, the JM Financial Mutual Fund network spans across 13 locations, over 16,600 plus distributors, 1.35 lakh folios, and 81 service centres. With its bouquet of 12 mutual fund schemes, we cater to institutional and retail investors.
The aim of growth funds is to provide capital appreciation over the medium to long-term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options like dividend option, capital appreciation, etc. to investors and investors may then choose an option that suits their preferences.
These funds generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market. Arbitrageurs buy equity and sell equal volume of futures so that their net position (in terms of risk) is zero. They remain unaffected by price movements in their arbitraged scrips. Any upward movement will increase profits on their equity holdings and losses on futures positions and vice versa.
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected by changes in the interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short-run and vice versa.
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial papers, inter-bank call money, etc. Returns on these schemes fluctuate much less as compared to other funds. These funds are appropriate for corporate as well as individual investors as a means to park their surplus funds for short periods.
These funds invest in both, stocks and bonds. Hybrid funds offer investors the opportunity to diversify their portfolio with a single investment vehicle. Based on the percentage allocation to stocks and bonds, these funds may be classified as equity or debt respectively. The ratio of stocks and bonds may remain fixed or vary over time.
Mr. Amitabh Mohanty is the Managing Director and CEO of the JM Financial Mutual Fund business in India.
Investors can invest with us by visiting any of our 12 branches and over 81 Investor Service Centres (Karvy) pan India. Investments can also be carried out through our network of over 17,033 empanelled distributors. Alternatively, investors can also transact online through any of our 53 distributor web portals.
The AMC has also tied up with BSE and NSE to offer the online facilities of BSE Star and MFSS platforms of the respective exchanges, to investors.
