JM Value Fund Regular Plan Growth Benefits

JM Financial Mutual Fund Regular Plan Growth Benefits

The JM Value Fund philosophy is to invest in companies with strong fundamentals, long term growth potential and exceptional value. The fund is not a growth product to capitalize on short-term market frenzies, but one that looks for value and has the potential to deliver long-term returns.

Ever ask yourself why some investors don’t rush to invest in the popular stocks, but rather wait for the right time? Value investing is about that! Value investors do not chase trendy stocks. Instead, they look for high-quality stocks that the market has undervalued.

This is a fund you’ll want to consider should you invest using a disciplined approach and want to build long-term wealth.

What is the JM Value Fund?

The JM Value Fund is an equity fund with a value investing approach. It mainly buys stocks that are trading cheaply on the stock market, but have good business fundamentals.

The Regular Plan Growth option is best for investors who would like to have the investment proactively managed and who desire that the money they invest in this plan benefit from long-term capital growth.

Investment Objective

The main aim of the fund is to achieve long-term capital appreciation through investments mainly in equity and equity related securities of companies on offer at attractive valuations.

Regular Plan Growth Explained

In the Regular Plan Growth option:

Returns remain invested.
Compounding is a feature that attracts investors to the mutual fund.
No payouts of the dividend.
It can be used for a long-term financial objective.

About JM Financial Asset Management Limited

The JM Financial Asset Management Limited (JMFAML) is the asset management company that manages the portfolio of the JM Mutual Fund. The company is research-driven, and it is based on portfolio management.

It is investing process is based on:

Fundamental research
Risk management
Portfolio diversification
Long-term value creation
Professional fund management

It has a systematic investment philosophy designed to provide investment results that have a degree of consistency across market cycles.

Understanding Value Investing

Value investing is like shopping during a sale. When you believe a premium product is worth much more than its current price, you naturally feel encouraged to buy it at a discount. Likewise, when you identify a high-quality stock trading below its true value, you can seize the opportunity to invest before the market recognizes its full potential.

In the same way, a value stock is a stock that is being undervalued by the market, but has noteworthy long-term prospects.

Value investors wait for the market to appreciate the real worth of value stocks rather than buy the expensive growth stocks.

Key Features of JM Value Fund

1. Value-Oriented Investment Strategy

The fund targets firms with appealing valuations, but still good financial results.

2. Diversified Equity Portfolio

Diversification is achieved by investing in a variety of industries.

3. Long-Term Wealth Creation

The plan emphasizes on the long-term appreciation of the capital in the years ahead and not on making a gain in the short run.

4. Professional Fund Management

Professional investors regularly adjust the portfolio as conditions in the market dictate and re-balance when needed.

How JM Value Fund Works

Finding Undervalued Businesses

Fund managers analyze:

Revenue growth
Profitability
Cash flow
Industry outlook
Competitive advantages
Future growth opportunities

Portfolio Construction

After it’s determined which companies are appropriate, investments are spread across multiple industries in order to manage risk and return.

Continuous Monitoring

The portfolio is then reviewed regularly to make sure that the investments are still aligned with the fund’s value investing philosophy.

Why Invest in JM Value Fund Regular Plan Growth?

The reason why investors look at this fund for long term investment is there are multiple reasons.

Potential Capital Appreciation

The long-term value might be greater when markets appreciate the value of essentially sound businesses when they are purchased at attractive valuations.

Compounding Benefits

When you invest in the Growth option, your profit is kept in your investment, which means that the money invested can grow over time.

Experienced Fund Management

Comprehensive market analysis and professional investment management support investment decisions.

Diversification

The fund is diversified both within the companies and among the various sectors, thereby lowering the risk of the companies in the fund.

Lump Sum vs SIP Investment

Feature	SIP	Lump Sum
Investment Style	Monthly	One-Time
Market Timing Risk	Lower	Higher
Fairly flexible budget	Yes	Requires Large Capital
Suitable For	Salaried Investors	Investors with Surplus Funds
Volatility Impact	Weakened	Increased

Who Should Invest in JM Value Fund?

This fund could be ideal for:

Long-term investors
SIP investors
Equity investors
Investors who are coming into the mutual fund market for the first time
Wealth creators
Retirement planners
Investors who like to take risks in the stock market

Risk Factors to Consider

As with all equity mutual funds, the JM Financial Mutual Fund has market risk.

The following are some of the risks involved:

Stock market volatility
Economic slowdown
Interest rate movements
Sector-specific risks
The temporary reduction in NAV is to be expected

The ideal time frame for investors is to hold on for five years or more, therefore.

Taxation of JM Value Fund

This is an equity oriented mutual fund:

STCG tax applicable to short term capital gains in equity funds as per the tax rates applicable at the time of investment.
Also, long term capital gains are charged as per the applicable rules.
Tax regulations can be subject to change, so investors should seek the advice of a tax professional for advice that is specific to their own situation.

How to Invest in JM Value Fund Online

With online investing, it’s very easy.

Step 1

Complete your KYC.

Step 2

Select the JM Value Fund Regular Plan Growth.

Step 3

Choose either SIP or Lump Sum.

Step 4

Complete the payment.

Step 5

Monitor your investments on a regular basis.

Tips Before Investing in a Value Fund

When investing, always keep in mind to:

Outline your finances.
Investigate for long-term.
Review the portfolio on a regular basis.
Don’t panic at the time of the market correction.
Don’t stop SIPs when markets are volatile.
Diversify your investments.
Know your risk level.

Conclusion

The intention of the JM Value Fund Regular Plan Growth is to provide investors with long-term value investing with a disciplined approach for long-term capital growth. The fund, run by JM Financial Asset Management Limited, is interested in finding fundamentally strong companies that are trading at good valuations. The ups and downs in the market are a part of equity investment, and by investing over a longer period and investing regularly using SIPs or lumpsum investments, an investor can gradually create a corpus for his financial goal. Before you make any investment decision, look at your risk profile, investment horizon and financial objectives like any other investment in a mutual fund.

FAQs

1. What is the JM Value Fund?

Ans) JM Value Fund is an equity mutual fund that adopts the value investment approach that invests in companies that are fundamentally good and are at attractive valuations.

2. Who manages the JM Value Fund?

Ans) The fund is run by JM Financial Asset Management Limited, who undertakes a research led, disciplined investment approach.

3. Is JM Value Fund suitable for SIP investment?

Ans) Yes. The investors who have long-term investment time horizon can utilize SIPs for the advantage of rupee cost averaging and the advantage of compounding.