JP Morgan India Equity Fund

JP Morgan India Equity Fund is being managed by Harshad Patwardhan & Amit Gadgil. This makes a good option for new investors. The fund has given consistent performance in its five years of existence but it is not above category average. The fund aims to generate income and long term capital growth by adopting bottom-up stock picking approach and investing in companies with strong growth potential.

Where does JP Morgan India Equity Fund invest your money?

JP Morgan India Equity Fund is a large cap fund which means most of your money is invested in stocks of large companies. It has 87% allocation in stocks of large cap companies, 12% allocation in stocks of mid cap companies and close to 1% allocation in stocks of small cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creating wealth
  • Short term needs
  • Lifestyle needs
How has JP Morgan India Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in June 2007, your value of investments would be around Rs 1.33 lakhs. Performance has not been better than most other funds in its category. The fund has been giving at around 6% every year for those who have stayed invested since inception.

Assume you had invested Rs 10,000 every month in JP Morgan India Equity Fund through SIP for the last 5 years today you would have around Rs 7.73lakhs.

How will JP Morgan India Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.  

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

How much to invest?

Minimum one time investment is Rs 5000 and minimum sip investment is 1000. Make JP Morgan India Equity Fund as part of your core portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

An exit load of 1% is charged if units are redeemed within 540 days. No exit load applies for units withdrawn thereafter. Expense ratio of JP Morgan India Equity Fund is 2.78%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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