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JM Agri and Infra Fund – NFO

December 11, 2007

All the fund houses are raising money as if there is no tomorrow. Well the problem is tomorrow AMFI is changing the rules of the game. Yes, AMFI will not allow the initial NFO load of 5-6% which the Fund houses amortize on investors beginning from Jan-2008.

JM Agri and Infra Fund: [JAIF]
This is a fund launched by the house of JM Mutual Fund. The investment objective of JAIF is to provide long-term growth by investing predominantly in equity / equity related instruments of companies that focus on agriculture and infrastructure development of India.

JAIF will not have any market capitalisation restrictions, such that the investments will be across market cap range. The agri and infra related sectors account for 62% of the the BSE Market Cap. The portfolio of the scheme will be diversified with 25-30 stocks and may also invest in unlisted securities to a maximum of 10% of the assets while the scheme is close-ended. The share of the 2 sectors will generally be split 50:50. However, based on relative valuations, the mix can move between 30-70%.

The fund will be managed by Mr. Sandip Sabharwal, erstwhile SBI Fund Manager chargesheeted in the Ketan Parekh Security Scam. Mr. Sandip is an alumnus of IIT and IIM, Bangalore.

The NFO is open for subscription and will close on 18/12/2007. We recommend investors with VERY HIGH RISK appetite to subscribe. Value investors can continue with the SIP model of investment.

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