JP Morgan announces income fund investing in corporate debt

MUMBAI: JP Morgan Asset Management ( JPMAM) India today announced it has launched JP Morgan India Corporate Debt Opportunities Fund, an open-ended income scheme to generate regular income and capital appreciation by investing predominantly in corporate debt.

The underlying investment philosophy of this fund is to generate regular income and opportunities for capital appreciation while maintaining liquidity through active management of a diversified portfolio comprising corporate bonds and securities across the investment grade credit rating and maturity spectrum, a company release said.

"The biggest positive for debt markets unlike equity is that the central bank itself is focussed on minimising volatility since it directly impacts economic activity," JPMAM India MD and CEO Nandkumar Surti said.

The fund would benefit investors since it is poised to take advantage of current economic reforms and improvement in credit rating in the medium term, he said.

The new fund offer, which was launched today, will close on 17 September.

"The disinflationary trend in the economy should bode well for monetary easing and may lead to a trend of falling interest rates in the medium term. We believe that rates across the curve could fall meaningfully over the next 18 to 24 months. This is certainly an opportune time for debt investors," JPMAM India Head (fixed income) Namdev Chougule said.