JM Basic Fund from the JM Financial Mutual Fund has recently announced a dividend of 36% (I.e Rs. 3.60 per unit on the face value of Rs. 10). The Record Date for this is January 11, 2008. The earlier dividend is 45% in September 2007
The scheme is heavily into stocks in Construction, Metals & Metal Products and Basic/Engineering sectors, all of which has zommed and shown remarkable jumps in stock prices in the last one year or so.
Top holdings include Sintex Industries, PSL, Bharati Shipyard, Hindustan Construction Co. and Maharashtra Seamless.
The objective of the fund is “The scheme aims to invest in energy and petrochemical sector. It shall have the mandate to invest in Oil & Gas, Petrochemicals, Power Generation & Distribution, and Electrical Equipment Suppliers”. The NAV is at Rs. 29.1413 as of November 11, 2008.
January 14th, 2008
JM Financial Mutual Fund has announced dividend for two of its funds. Investors of JM Equity & Derivative Fund will get a dividend of 2.10% (Rs. 0.21 per unit)(inclusive of Dividend distribution tax) while JM Arbitrage Advantage Fund investors will get a dividend of 2% (Rs. 0.20 per unit). March 23, 2007 will be taken as the record date.
March 20th, 2007
JM Financial Mutual Fund has filed draft offer document before SEBI for its upcoming contra fund. The JM Contra Fund will be an open ended equity oriented fund. Units in this scheme can be purchased at Rs. 10/- per unit subject to the applicable load. Of course, most of the recent NFOs are now charging load charges upfront. As per the rules of amortisation, fund houses have to charge the issue expenses upfront in case of open-ended funds. Close-ended fund however can charge the issue expenses over the tenure of the fund. This means, for a close-ended fund, the fund house can charge the initial expenses spread over 3 years for a 3-year close ended fund.
Coming back to the JM Contra Fund, the investment objective of the scheme is to provide capital appreciation by following contrarian style of investing i.e. buying into fundamentally sound stocks that have been overlooked by the market for reasons such as short term trend and waiting for the market to give these stocks their real value in course of time.
The Minimum application amount is Rs. 5,000/- per Plan / Option and in multiples of Re.1/- thereafter during the New Fund Offer period, and in case of first time investments. For ongoing investments in an existing folio the investment would be Rs. 1,000/- and in multiples of Re. 1/- thereafter.
The Entry Load for JM Contra Fund will be 2.25% for investments less than Rs. 5 Crores and Nil for investments over and above Rs. 5 Crores. There will not be any Entry Load for investments made under Systematic Investment Facility (SIF). SIF is JM’s word for the popular industrial term Systematic Investment Plan or SIP.
In regard to Exit Load, the fund charges 1% if redeemed within 6 months of allotment of units /
transfer and in case of investments made through SIF, it will be 2.25% if redeemed within 1 year of allotment / transfer of units.
A look at NAV’s (as on February 20, 2007) of some Contra schemes from other fund houses
DBS Chola Contra Fund - Cumulative Option; 11.53
DBS Chola Contra Fund - Dividend Option; 11.53
Kotak Contra Scheme - Dividend;14.814
Kotak Contra Scheme - Growth;14.814
SBI MSFU Contra - Dividend;28.89
SBI MSFU Contra - Growth;38.35
Tata Contra Fund - Dividend;11.5873
Tata Contra Fund - Growth;11.5913
UTI Contra Fund - Growth-Growth Option;9.68
UTI Contra Fund - Income-Dividend Option;9.68
February 21st, 2007