JM Equity Fund
belongs to an Equity Diversified
category with BSE Sensex
as its Benchmark. Across time period, the fund has been trailing its benchmark. According to financial advisor, Arnav Pandya
, investors should avoid this fund till consistency is maintained in the performance.
JM Equity Fund
Nature: Equity oriented open ended
Inception: December 1994
Assets under Management: Rs 46 crore at the end of December 2011
Fund Managers: Sanjay Kumar Chhabaria
- The fund had a different kind of exposure from what was commonly found among other equity diversified funds at the end of January 2010 with the maximum exposure to construction projects at 18 per cent followed by power at 11 per cent. Industrial capital goods and telecom were the other areas with an exposure of around 10 per cent. Jaiprakash Associates was the top holding with a figure of 6.5 per cent followed by Nagarjuna Construction, L&T, IVRCL Infrastructure and Projects and Tulip IT services. The portfolio turnover was low at 0.05 times and the fund was trailing its benchmark the BSE Sensex over the one, three and five year time periods.
- At the end of June 2010 the fund witnessed a change in the position as industrial capital goods was now the top sector followed by construction projects and then by power and auto. In terms of the individual holdings, L&T was now at the top with a 7 per cent plus exposure followed by Reliance Industries, Jaiprakash Associates, Infosys and M&M. This shows how the top holdings now consisted mainly of large caps while there were several mid caps dominating this list earlier. The fund continued to trail its benchmark over all the time periods of one year and beyond.
- The change in the portfolio of the fund continued and at the end of January 2011 auto was the top sector with an exposure of over 20 per cent. Industrial capital goods and consumer non durables were the other sectors that had a 10 per cent plus exposure and around 11 per cent of the fund was in liquid assets. M&M was the top holding followed by Infosys, BHEL, HUL and Reliance Industries. The top 7 holdings now had an exposure of over 6 per cent each which meant that the fund was slightly more aggressive in its approach. The fund however continued to trail its benchmark over all time periods.
- A few months later at the end of July 2011 the situation was once again different as banks were the top sector followed by software and consumer non durables. There was an aggressive approach adopted by the fund as the top two holdings in the form of Reliance Industries and Infosys were in excess of 9 per cent each. The other top holdings were ICICI Bank, ITC and HDFC Bank. All this did not help the fund to post an impressive performance as the underperformance continued over all time periods.
- The fund continued to have banks as the top sector at the end of January 2012. This was followed by auto, consumer non durables and cement. Among the top individual holdings ICICI Bank was at the top followed by Reliance Industries, L&T, ITC and HDFC. The portfolio turnover was at 0.18. The fund had not recovered and was still an underperformer over the one and three year time periods.
- Investors for the moment can avoid the fund till the time that there is a consistency that is witnessed in its performance.
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