JP Morgan AMC launches JPMorgan India Hybrid Fund Series 2

MUMBAI: JP Morgan AMC has launched JPMorgan India Hybrid Fund Series 2, a closed ended hybrid scheme that will invest in a mix of equity and debt. The scheme has a tenure of 1025 days. The scheme will aim to generate returns by containing the interest rate volatility. The scheme will invest at least 65% of the assets in fixed income securities and the equity allocation is restricted to maximum 35%.

The performance of the scheme will be compared with an artificial benchmark comprising 90% of CRISIL Short Term Bond Fund Index and 10% of BSE 200. Namdev Chougule, Ravi Ratanpal, Amit Gadgil and Karan Sikka are the fund managers for this scheme.

The scheme aims to invest in various fixed income instruments that mature before the maturity of the scheme. Thus it reduces the interest rate volatility. While the fixed income allocation ensures steady returns to get the capital back upon maturity, there is no guarantee of return of capital.

The allocation to equity offers an opportunity to the investors to earn some extra returns. The scheme closes on March 22. You need minimum Rs 5000 to invest in this scheme. The scheme offers growth and dividend payout option.

Why invest: The scheme offers a good opportunity to conservative investors to buy into equities with three year view

Why not invest: The scheme scores very low on liquidity front, as the scheme’s units listed on the stock exchange may not be transacted at the fair value due to infrequent trading.