In this article, we will analyse how good is this JPMorgan JF Greater China Fund NFO, whether this JPMorgan JF Greater China Fund offers anything new or unique for the investors and whether the investors should invest in JPMorgan JF Greater China Fund .
Let's begin with some details about JPMorgan JF Greater China Fund.
What are the NFO dates for JPMorgan JF Greater China Fund ?
The NFO for JPMorgan JF Greater China Fund will open on July 9, 2009 and will close on July 31, 2009.
What is so unique about this JPMorgan JF Greater China Fund ?
This is an international fund. It's focus will be on the stocks and companies which are incorporated in China, HongKong and in the Greter China region.
All the investors willing to take a shot at JPMorgan JF Greater China Fund should understand that this is actually a Fund of Funds (What's this?). What it means is that this fund will not invest in any companies or stocks diectly, instead it will invest in other funds, like JF Greater China Equity Fund. It is this fund which will invest in stocks/companies in the Greater China region.
A related NFO for a Fund of Funds is currently open and is offered by DSP Merrill Lynch. It is DSP BlackRock World Energy Fund. Another example is Blackrock Absolute Return Strategies Fund
This is a international fund, hence there may possibly be a forex risk involved. Investors must be aware of this.
Also, they mention that the fund manager may at his discretion, invest in other international or overseas mutual fund. Hence, it all depends on the investment manager.
There is only 1 investment option available:
• Growth Option
• No Dividend Option
- No Payout Dividend
- No Reinvest Dividend
Minimum Application amount stands at Rs 10000, SIP option for investment is available.
Mutual Fund NFO offers Currently Open: July 2009
- DSP BlackRock World Energy Fund: Review & Analysis
- Sahara Super 20 Fund NFO Review & Analysis
- Religare Business Leaders Fund NFO Review & Analysis
- Franklin Build India Fund FBIF NFO Review & Analysis
No Tax Benefit is available in the JPMorgan JF Greater China Fund
The entry load for JPMorgan JF Greater China Fund is as follows:
For investment amount: < Rs. 5 Crore – 2.25% of the initial value of Rs. 10/-during NFO/Applicable NAV during Continuous Offer
>= Rs. 5 crore – NIL
No Entry Load charged on Direct Applications, i.e. applications not routed through a distributor/ agent/ broker
Exit Load:
Holding period from date of allotment:
Within 6 months from the date of allotment in respect of Purchase made other than through SIP - 1.00%
Within 24 months from the date of allotment in respect of the first Purchase made through SIP - 1.00%
No Entry Load/ Exit Loads will be chargeable in case of switches made between different Options of the scheme.
Benchmark Index for JPMorgan JF Greater China Fund:
No Info available
JPMorgan JF Greater China Fund NFO offer price: Rs. 10 per unit plus applicable load, if any.
Final Thoughts about the JPMorgan JF Greater China Fund?
Overall, this JPMorgan JF Greater China Fund is a regional fund concentrating on China region and is betting on the growth of companies in that region at global and local level. However, there are some risk elements in this fund. It is a fund of funds as explained above, so the ultimate performance depends upon how the actual funds perform and how the stocks which those funds have invested in perform.
Being an overseas investment, there is a forex risk involved- which investors should be aware of.
On the plus side, it offers you exposure to your investments at international level. Suppose that India does not grow that well but China does, then the investors of this fund of funds may benefit. Investors have to take the call
1 comment:
Will the long term capital gain made in this fund taxable?
Post a Comment