Skip to main content

JPMorgan India Equity Fund

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Multi-cap funds provide investors a benefit of investing across market capitalisations – be it large caps, mid-caps or small caps. Their investment mandate does not restrict them to invest in only a specific market cap segment, which thus provides them an opportunity to create wealth by delivering alpha returns. Moreover, they are not confined to one particular style of investing, which allows them to follow a value, growth or blend style of investing. While undertaking their stock picking activity too they can follow a bottom-up as well as a top-down approach of investing across capitalisations. Hence given that, the fund managers' of multi-cap funds very often actively engage in portfolio churning (to take exposure to the opportunities in respective market segment(s)) with an objective of creating wealth.

JPMorgan India Equity Fund (JIEF) is one such open-ended fund from the stable of JPMorgan Mutual Fund, which follows a blend style of investing. Being launched in June 2007 the fund has completed 4 ½ years now.

The fund's primary investment objective is "to generate income and long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives. However, there can be no assurance that the investment objective of the Scheme will be realised."

JIEF follows a mandate of investing 65% - 100% of its assets in equity and equity related instruments without any market cap bias. Also having a defensive consideration and to manage its liquidity requirements, the scheme may also invest upto 35% of its assets in debt and money market instruments.

Over the past one year, JIEF has held a dominant exposure towards the large caps ranging from 73% - 91%. But ascertaining the volatility experienced by the Indian equity markets in the last one year due to global and domestic economic worries, the fund has preferred to take a defensive stance and has thus taken a moderate exposure towards to the mid & small cap space ranging from 5% - 21%. Similarly, the fund has also preferred to stay invested at all times as revealed by its minimal exposure to debt and cash which has ranged from 3%-6% in past one year.

 

Equity Portfolio

Holdings

July 2011

August 2011

September 2011

October 2011

November 2011

ITC Ltd.

6.3

6.8

6.8

7.0

6.9

Infosys Ltd.

4.7

3.0

5.8

6.2

6.4

Reliance Industries Ltd.

4.7

5.0

4.7

7.3

5.2

HDFC Bank Ltd.

5.2

5.4

6.0

5.0

5.0

HDFC Ltd.

5.3

5.8

5.9

4.0

4.3

ICICI Bank Ltd.

6.3

4.5

4.8

5.2

3.9

Bharti Airtel Ltd.

5.1

4.9

4.9

3.9

3.8

Tata Consultancy Services Ltd.

3.7

-

2.8

3.0

3.5

Sun Pharmaceutical Inds. Ltd.

2.7

3.1

2.9

2.5

3.2

Hindustan Unilever Ltd.

-

-

1.7

-

3.1

 

As far as portfolio strategy is concerned, JIEF follows the bottom up approach and evaluates companies based on following:

 

·         Strong growth potential

·         Whether the company has a special product which has a particular market niche and therefore good earnings potential

·         Companies undertaking corporate restructuring.

 

JIEF's top-10 equity portfolio constitutes of 'A' group stocks only. As per the latest portfolio disclosed as on November 31, 2011, 79.1% of its assets have been allocated to large caps, 15.2% towards mid & small caps, while cash and debt component constitutes 5.7%. Top 10 stocks account for 45.2% of the portfolio which makes it a fairly concentrated portfolio at top. It is noteworthy that 35.1% of its assets are invested in unidentified stocks classified under "other equities". JIEF is benchmarked against BSE 200, and has been reasonably consistent with its stock holdings since its portfolio turnover ratio is moderate at 0.98 times.

 

How JIEF has fared vis-à-vis its peers

Scheme Name

6-Mth (%)

1-Yr (%)

3-Yr (%)

5-Yr (%)

Std. Dev. (%)

Sharpe Ratio

Fidelity India Growth (G)

-9.1

-17.8

24.4

-

6.76

0.25

HDFC Premier Multi-Cap (G)

-17.0

-20.8

22.7

6.1

7.88

0.23

Reliance Reg Savings-Equity (G)

-16.9

-27.9

19.9

9.4

8.67

0.19

JPMorgan India Equity (G)

-10.2

-19.5

18.7

-

6.94

0.19

Sundaram Equity Multiplier (G)

-16.4

-21.9

12.8

-

7.72

0.13

SBI Magnum Multicap (G)

-15.4

-27.3

11.6

-2.1

7.56

0.11

BSE-200

-13.1

-23.6

17.0

3.3

8.25

0.16

 

The table above reveals that so far the performance of JIEF has been quite luring. Over a 3-Yr time frame, the fund has clocked a return of 18.7% CAGR, thereby outperforming its benchmark.

 

Also when assessed on the volatility front, JIEF has exposed its investor to much lower risk (as revealed by its Standard Deviation of 6.94%), and has been able to clock satisfying risk-adjusted returns (as revealed by the Sharp Ratio of 0.19) as well, thus making it a Low risk-Average return investment proposition in the category.

 

Fund Manager Profile

Name of the Fund Manager

Mr. Harshad Patwardhan

Mr. Amit Gadgil

Total Work Experience

Over 16 years

Over 8 years

Managing the fund since

Jun-07

Jun-07

Qualifications

B.Tech, MBA, CFA

CA, MBA

 

As seen above JPMorgan India Equity Fund has been able generate luring returns by exposing its investors to low risk, thus resulting in it achieving a satisfying risk-adjusted return as well. Hence we believe those investors who already have exposure to this fund can continue to hold the same. But if one wants to invest fresh money in multi cap space then one would be better off investing in a fund which has performed well across market cycles and reflects consistency in its returns. A thorough analysis of mutual funds may help you shortlist the potential performers.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

-------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

Tata Mutual Fund

Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start. Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed. It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds. The funds of Tata AMC are known to...

UTI Mutual Fund

Even though only a few of UTI’s funds are great performers, this public sector fund house has many advantages that its rivals do not. It has a huge base of retail equity investors and a vast distribution network. As a business, it looks stronger than ever, especially in the aftermath of credit crunch. UTI is, by a large margin, the most profitable fund company in the country. This is not surprising, since managing equity funds is more profitable than debt. Its conservative approach and stable parentage is likely to make it look more attractive to investors in times to come. UTI’s big problem is the dragging performance that many of its equity funds suffer from. In recent times, the management has made a concerted effort to improve performance. However, these moves have coincided with a disastrous phase in the stock markets and that has made it impossible to judge whether the overhaul will eventually be a success. UTI’s top performers are a few index funds, some hybrid funds and its inf...

Salary planning Article

1. The salary (basic + DA) should be low. The rest should come by way of such allowances on which the employer pays FBT and you don't pay any tax thereon. 2. Interest paid on housing loan is deductible u/s 24 up to Rs 1.5 lakh (Rs 150,000) on self-occupied property and without any limit on a commercial or rented house. 3. The repayment of housing loan from specified sources is also deductible irrespective of whether the house is self-occupied or given on rent within the overall ceiling of Rs 1 lakh of Sec. 80C. 4. Where the accommodation provided to the employee is taken on lease by the employer, the perk value is the actual amount of lease rental or 20 per cent of the salary, whichever is lower. Understandably, if the house belongs to a family member who is at a low or nil tax zone the family benefits. Yes, the maximum benefit accrues when the rent is over 20 per cent of the salary. 5. A chauffeur driven motor car provided by the employer has no perk value. True, the company would...

8 Investing Strategy

The stock market ‘meltdown’ witnessed since the start of 2005 (notwithstanding the recent marginal recovery) has once again brought to the forefront an inherent weakness existent in our markets. This is the fact that FIIs, indisputably and almost entirely, dominate the Indian stock market sentiments and consequently the market movements. In this article, we make an attempt to list down a few points that would aid an investor in mitigating the risks and curtailing the losses during times of volatility as large investors (read FIIs) enter and exit stocks. Read on Manage greed/fear: This is an important point, which every investor must keep in mind owing to its great influencing ability in equity investment decisions. This point simply means that in a bull run - control the greed factor, which could entice you, the investor, to compromise with your investment principles. By this we mean that while an investor could get lured into investing in penny and small-cap stocks owing to their eye-...

Debt Funds - Check The Expiry Date

This time we give you an insight into something that most debt fund investors would be unaware of, the Average Portfolio Maturity. As we all know, debt funds invest in bonds and securities. These instruments mature over a certain period of time, which is called maturity. The maturity is the length of time till the principal amount is returned to the security-holder or bond-holder. A debt fund invests in a number of such instruments and each of these instruments would be having different maturity times. Hence, the fund calculates a weighted average maturity, which would give a fair idea of the fund's maturity period. For example, if a fund owns three bonds of 2-year (Rs 30,000), 3-year (Rs 10,000) and 5-year (Rs 20,000) maturities, its weighted average maturity would be 3.17 years. What is the big deal about average maturity then, you may ask. Well, knowing a fund's average maturity is important because it tells you how sensitive a fund is to the change in interest rates. It is ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now