New Delhi: JM Financial is set to launch its new small-cap fund with a very high risk that invests in small-cap stocks. Investors can start with a minimum commitment of Rs 5,000. Managed by Asit Bhandarkar and Chaitanya Choksi, the fund offer will open on May 27, 2024 and close on June 10, 2024.
What is the exit load for JM Small Cap Fund
If you exit JM Small Cap Fund before 6 months, there will be an exit load of 0.01 per cent. It is better to invest in a small-cap fund for a longer duration. According to Mrin Aggarwal, director at investment advisory firm Finsafe, there are multiple small-cap funds to look at with adequate data to back them.
Investors should proceed with caution when it comes to NFO, said Aggarwal. While investing in a new fund offer, look at potential growth instead of going by the net asset value. It is better to go with the knowns instead of the unknowns. Aggarwal suggests that index funds should be avoided since it takes at least 6 months for the tracking errors to pick up.
Another reason to be cautious about new fund offers is the expense ratio since older funds have more assets under management and therefore lower expense ratio. Small-cap funds have witnessed multiple inflows, according to Aggarwal. However, since this is a volatile category, small caps witness a lost of investor interest. Only invest in small-caps if you are able to remain invested for a longer term, said Aggarwal.
JM Financial Small Cap Fund details
The net asset value of this fund is Rs 10 per unit. KFinTechnologies in the registrar and transfer agent on the NFO. The fund is indexed to the Nifty Smallcap 250 TRI index. The allotment date for the NFO is June 18, 2024. The mutual fund will be open for subscription from June 25, 2024. According to the fund offer document, small caps are expected to outperform peers owing to their primary focus on domestic markets. As global markets slow down, domestic consumption is expected to drive growth in India, benefiting small caps, the document stated.
(Disclaimer: This article is only meant for informational purposes. News9 does not advice on the sale, purchase or subscription of stocks, mutual funds or IPOs)
Jm FInancial i set to launch a new fund offer for its Small Cap Fund from May 27, 2024 until June 10, 2024. The new fund offer is rated high on the risk-o-meter. However, the fund house suggests that focus on domestic consumption for economic growth is likely to benefit small caps. Know what our expert has to say in the matter. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
