JP Morgan India Smaller Companies Fund

JP Morgan India Smaller Companies Fund is being managed by Harshad Patwardhan & Amit Gadgil. If you have invested in this fund, watch its performance. New investors can skip this one for better performing funds in the same category.

Where does JP Morgan India Smaller Companies Fund invest your money?

JP Morgan India Smaller Companies Fund is a small & mid cap fund which means most of your money is invested in stocks of medium sized companies. Its equity portion has about 73% allocations in stocks of mid cap companies, 15% to small cap companies and close to 13.03% allocation in stocks of large cap companies.

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

If you had invested Rs 1 lakh when the fund was launched at Nov 2007, your value of investments would have dropped to Rs 85,151. The performance has not been better or similar to other large cap mutual funds. The fund has been giving  2.14% returns for those who have stayed invested for the past 5 years.

Assume you had invested Rs 10,000 every month in JP Morgan India Smaller Companies Fund through SIP from the month of inception, today you would have around Rs 8.33 lakhs.

How will JP Morgan India Smaller Companies 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%.

Mutual fund schemes that have exposure to mid sized companies tend to show results when their bet on few companies comes true. 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.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
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?

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 Smaller Companies Fund is 2.87%. 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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