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JM Mutual launches open fund for gilts

J M Mutual Fund launched its open-ended dedicated gilt fund in Bombay today.

JM G-Sec Fund is an ideal investment vehicle for corporates, provident funds, individuals, banks and trusts, said a company statement.

The fund will have three separate plans with several unique features. The fund will open for initial subscription on September 15 and closes on September 29, 1999.

Ashutosh Bishnoi, president and chief executive, J M Capital Management Limited, said, "We believe that prices of securities in the gilt securities market are affected by various factors, which consequently will impact the NAV of the Gilt Fund. There is a need for professional and active management of gilts that will help investors to earn better returns on gilt-based funds. Also with the government allowing private provident funds to invest upto 60 per cent of their incremental accretion, the floodgates of opportunities for gilt funds have opened. We expect to tap this opportunity through our unique offerings."

Bishnoi further stated that the scheme will have three plans: short-term, regular and provident fund. Minimum investemnt would be Rs 5,000 per unit-holder.

Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the mutual funds will be achieved. JM G-Sec Fund is only the name of the scheme and does not in any manner indicate either the quality of the scheme or its future prospects or returns.

Investments in JM G-Sec Fund is not guaranteed by the government of India, Bishnoi said to caution investors.

UNI

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