JP Morgan AMC launches JP Morgan India Income Fund - Series 302

The product: The scheme will invest in a combination of money market instruments, debt securities and GOI securities. While 0-30% of the corpus will be invested in money market instruments, the balance 70-100% will be invested in a combination of debt securities and GOI securities. The Scheme shall not invest in any sector beyond 30% of the Scheme’s AUM. The scheme will be benchmarked against the CRISIL Composite Bond Fund Index.

“Currently AAA long term bonds are available at higher spreads, which indicates it is an ideal time for investors to lock into these high rates for the next 3 years,” says Anup Bhaiya, MD and CEO, Money Honey Financial Services. Besides this, investors who believe interest rates are at their peak should lock in at these high rates to take advantage.

There is no entry or exit load and units will be available at Rs 10. The minimum amount payable on application is Rs 5,000 and in multiples of Rs 1 thereafter. Post NFO closure, the units will be listed on the NSE.

Why invest: Since interest rates is expected to fall in the near future, it would make sense to lock your money at at the current rates.

Why not to invest: Since it is a close-ended scheme, it could be illiquid. Even though it will be listed, not much trading takes place in such schemes, and in case you need the money you would have to sell at a loss.