JPMorgan Asset Management India Pvt. Ltd. (JPMAMIPL) today announced the launch of JPMorgan India Alpha Fund, an actively managed scheme that aims to produce returns from a portfolio in an all-seasons environment.
The ‘Alpha’ strategy used here involves taking positions with minimal market risk by buying one stock (or its derivative) and selling another (or its derivative). This usually means identifying some trend that is benefiting one company and at the same time is detrimental to another.
Traditional equity funds tend to invest directly into stocks, which may go either up or down leading to either appreciation or depreciation of one’s investments. In the JPMorgan India Alpha fund, the fund manager would endeavor to construct a portfolio in a manner which will reduce the market risk (beta) significantly by investing in ‘stocks / derivatives with pair trades’. The stock selection would generate the returns (alpha) of the fund. The fund would invest in stocks / derivatives which would illustrate both positive and negative conviction on ideas and seek to benefit from relative outperformance.
The JPMorgan India Alpha Fund will be open for subscription from 31st July to 29th August 2008.
The JPMorgan India Alpha Fund is an ideal fit for any investor who owns equity mutual funds or direct equity in his portfolio. It is a complement to the existing long-only portfolio as it endeavors to reduce the overall risk (beta) of the portfolio because of the investment strategy. The strategy would be an ideal fit for investors who would like to have an exposure in the equity market but at the same time are not confident from a market outlook standpoint.
Krishnamurthy Vijayan, Wholetime Director & CEO, JPMAMIPL said, "At the launch of JPMorgan's mutual fund business in India, we had promised to bring in a diverse suite of our global fund products. The launch of JPMorgan India Alpha Fund is just one of the global investment solutions that we bring to you from the JPMorgan suite; and we will continue to launch more of them over the next few years. We are strong believers in long term investment and this fund reinstates our philosophy. We at JPMAMIPL are very excited and feel this fund will become an important part of investors’ portfolios."
Harshad Patwardhan, Investment Manager – Equity, JPMAMIPL said, “The JPMorgan India Alpha Fund will be a great addition to the existing long-only portfolio of investors as it endeavors to reduce the overall risk of the portfolio. The strategy is meant to act as an alternate equity investment targeted at the investor who does not want to take a directional call on the market.”
The ‘Alpha’ strategy used here involves taking positions with minimal market risk by buying one stock (or its derivative) and selling another (or its derivative). This usually means identifying some trend that is benefiting one company and at the same time is detrimental to another.
Traditional equity funds tend to invest directly into stocks, which may go either up or down leading to either appreciation or depreciation of one’s investments. In the JPMorgan India Alpha fund, the fund manager would endeavor to construct a portfolio in a manner which will reduce the market risk (beta) significantly by investing in ‘stocks / derivatives with pair trades’. The stock selection would generate the returns (alpha) of the fund. The fund would invest in stocks / derivatives which would illustrate both positive and negative conviction on ideas and seek to benefit from relative outperformance.
The JPMorgan India Alpha Fund will be open for subscription from 31st July to 29th August 2008.
The JPMorgan India Alpha Fund is an ideal fit for any investor who owns equity mutual funds or direct equity in his portfolio. It is a complement to the existing long-only portfolio as it endeavors to reduce the overall risk (beta) of the portfolio because of the investment strategy. The strategy would be an ideal fit for investors who would like to have an exposure in the equity market but at the same time are not confident from a market outlook standpoint.
Krishnamurthy Vijayan, Wholetime Director & CEO, JPMAMIPL said, "At the launch of JPMorgan's mutual fund business in India, we had promised to bring in a diverse suite of our global fund products. The launch of JPMorgan India Alpha Fund is just one of the global investment solutions that we bring to you from the JPMorgan suite; and we will continue to launch more of them over the next few years. We are strong believers in long term investment and this fund reinstates our philosophy. We at JPMAMIPL are very excited and feel this fund will become an important part of investors’ portfolios."
Harshad Patwardhan, Investment Manager – Equity, JPMAMIPL said, “The JPMorgan India Alpha Fund will be a great addition to the existing long-only portfolio of investors as it endeavors to reduce the overall risk of the portfolio. The strategy is meant to act as an alternate equity investment targeted at the investor who does not want to take a directional call on the market.”
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