JM Large & Mid Cap Fund NFO Opens on July 4, 2025

The NFO is an open-ended equity scheme designed to invest in both large-cap and mid-cap stocks. The fund aims to generate long-term capital growth by investing in quality companies with strong growth potential, good governance, and efficient capital allocation. Through a diversified portfolio, it seeks to balance risk while offering exposure to both established large-cap companies and promising mid-cap firms. The NFO also maintains flexibility to invest in other equity-related securities, debt, and money market instruments. While there is no guarantee of returns, the fund follows a disciplined approach to risk management and aims to create wealth for investors over the long term.

Key Features of JM Large & Mid Cap Fund

• Opening Date: July 4, 2025
• Closing Date: July 18, 2025
• Exit Load: 1% if redeemed/switched out within 180 days from the date of allotment & Nil if redeemed after 180 days.
• Fund Manager: Asit Bhandarkar

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Objective of JM Large & Mid Cap Fund

The objective of the JM Large & Mid Cap Fund - Direct (G) is to achieve long-term capital growth by investing primarily in equity and equity-related securities of large-cap and mid-cap companies. There is no assurance that the investment objective will be achieved, and returns are not guaranteed.

Investment Strategy of JM Large & Mid Cap Fund

• Invests predominantly in large-cap (1st to 100th) and mid-cap (101st to 250th) companies as per AMFI/SEBI guidelines
• Adopts a bottom-up approach to identify companies with high growth potential

Focus on businesses with:

• Strong growth outlook and scalability
• Sound balance sheet and healthy cash flow
• Good management quality and corporate governance
• Efficient capital allocation and reasonable valuations
• The JM Large & Mid Cap Fund - Direct (G) may also engage in stock lending activities
• Balance allocation in debt and money market instruments for risk management

Risks Associated with JM Large & Mid Cap Fund

• Investments in equity shares and related instruments are prone to price fluctuations and volatility
• Securities that are not listed carry higher liquidity risk
• Listed securities may face limited selling ability during low trading volumes
• Debt instruments face credit risk, interest rate risk, and reinvestment risk
• Money market instruments may lack a developed secondary market, affecting liquidity
• Zero-coupon bonds and lower-rated debt instruments may increase portfolio risk
• Changes in interest rates may significantly impact the NAV in debt holdings
• Government securities, though low in credit risk, still carry price risk based on interest rate movements
• Prepayment risk and settlement delays may also impact returns

Risk Mitigation Strategy by JM Large & Mid Cap Fund

• The NFO adopts a comprehensive risk management approach to safeguard investor interests. The equity portfolio is diversified across sectors and companies to manage concentration risk and volatility. 
• Exposure to individual companies adheres to regulatory limits, ensuring adequate diversification. 
• For debt investments, the JM Large & Mid Cap Fund - Direct (G) undertakes thorough credit evaluations and primarily invests in rated instruments with sound fundamentals. 
• Liquidity is maintained by investing in instruments with higher tradability. 
• Interest rate risk is managed through proactive duration management. Additionally, derivatives and hedging instruments may be used to manage portfolio volatility. While these measures aim to reduce risk, they cannot eliminate market risks.

What Type of Investor Should Invest in JM Large & Mid Cap Fund?

• Investors seeking long-term capital growth through equity exposure
• Those comfortable with market-linked volatility and risk associated with equities
• Investors looking for a diversified portfolio with exposure to both large-cap and mid-cap stocks
• Suitable for investors with an investment horizon of at least 3 to 5 years
• Those aiming to participate in India's growth story through well-governed, scalable companies