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JP Morgan - Latin America Equity Off-Shore Fund

Tuesday, August 26, 2008

JP Morgan AMC India is on a fund launching spree. The AMC has filed an offer document with Securities and Exchange Board of India (SEBI) to launch its Latin America Equity Off-Shore Fund, an open-ended fund of funds scheme. Just last week we saw that JP Morgan has filed with the SEBI to launch a Greater China Fund.

The scheme offers growth option only. The minimum subscription amount for the scheme is fixed at Rs 10,000 and in multiples of Re 1 thereafter.

The fund house will infuse up to 80%-100% in units of JPMorgan Funds - Latin America Equity Fund with medium to high risk profile. Similarly, it might invest 0-20% in money market instruments and/or units of liquid schemes with low to medium risk profile.

The objective of the scheme is to grant long term capital appreciation by investing in JPMorgan Funds - Latin American Equity Fund.
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Published by Webmaster @ 12:20 PM IST.

For Best Returns - Invest in Bad Times

Thursday, August 21, 2008

We all know that the basic principle of maximizing returns is to BUY Low and Sell High. However, the Indian Investor in general has always failed to Invest when the markets are cheap. On the contrary, they invest in Gold when it is cheap and consider it as a long term investment but are scared to invest in equities or maybe they have short term perceptions. [We have all seen in Reliance Power IPO]

Sr. Fund Manager, Mr. Prashant Jain of HDFC Mutual Fund has written an excellent note to his investors saying,
Best returns are typically on investments made in bad times.
You can read the entire document written by Prashant Jain here. [PDF]
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Published by Webmaster @ 8:42 AM IST.

JP Morgan JF Greater China Equity Off-shore Fund

Wednesday, August 20, 2008

JP Morgan Mutual Fund plans to launch JPMorgan JF Greater China Equity Off-shore Fund, an open-ended Fund of Funds scheme. The fund house has filed offer document with Securities and Exchange Board of India (SEBI) in this regard.

The fund house will invest up to 80%-100% of the raised funds in units/shares of the scheme. Similarly, it will invest up to 20% in money market instruments and/or units of liquid schemes.The fund primarily invests in a diversified portfolio of companies incorporated or which have their registered office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.

The scheme offers only growth option. The minimum subscription amount under this option is fixed at Rs 10,000 and in multiples of Re 1 thereafter.
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Published by Webmaster @ 11:43 AM IST.

Funds winding up investments in low grade CPs

Tuesday, August 19, 2008

Slowing economy has increased the risks on investments in Commercial Papers - CPs of companies with low investment ratings.

Companies with low investment rating are going to find it even more difficult to raise money in the already liquidity hungry market. Mutual fund houses are reducing the exposure to commercial papers issued by companies with low investment rating.

Slowing economy has increased the risks on such investments and fund managers are in no position to take any chances. Total investment liquid and liquid plus schemes and FMPs in these instruments has declined to around Rs 1670 crore at the end of July this year compared to Rs 3000 crore at the end of January this year.

Poor liquidity conditions prevailing in the market has also given more space to the fund managers to concentrate only on high investment rating companies. Usually these companies pay lower rate of return which forces fund managers to diversify in high risk investments. However, during the current high interest rate regime, even the companies with top investment ratings are willing to pay at par with the market rates.
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Published by Webmaster @ 3:45 PM IST.

HSBC's Duggal Buying Defensive Growth Stocks

Thursday, August 14, 2008

India's biggest bull, Sanjeev Duggal a Sr. Fund Manager with HSBC AMC who was the first to ask his investors to cash out in December-2007 has said that India is all set for long term growth and is reducing cash position to BUY into defensive growth stocks.

Mr. Duggal said,
Solid domestic consumption, favourable demographics and increasing investment in infrastructure remain the key growth drivers for India. The Indian economy is also less vulnerable to external shocks than other economies in Asia because exports account for less than 15% of the country's GDP.While macro conditions are expected to remain tight in the near term, most of the bad news should have been discounted.

As the recent interest rate hikes need time to take effect, inflation may rise further before peaking later this year, and then fall.
We have already initiated coverage on HSBC Equity Fund through SIP options and consider top-ups on market corrections.
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Published by Webmaster @ 12:28 PM IST.