JP Morgan launches fund to invest in European equities

JP Morgan Asset Management India Private Ltd today announced the launch of its Europe Dynamic Equity Offshore Fund. This fund is an open-ended fund of funds, and is open for subscription from 17 January to 31 January. The fund will re-open on 10 February.

“With economic indicators showing a positive trend, data points reversing and signs of the developed Europe being on a growth trajectory, we believe it’s just the right time to offer this fund to the Indian investors,” saidNandkumar Surti, MD & CEO.

“We believe, developed Europe is at a juncture where US was in 2011 and there couldn’t have been a more opportune time to seize this opportunity given the current momentum within Indian investors,” he added.

With this fund you get the opportunity to invest in companies across the European region.

Primary Objective: To provide long-term capital growth by investing predominantly in the JPMorgan Funds - Europe Dynamic Fund, an equity fund which invests primarily in an aggressively managed portfolio of European companies.

Finer details: The fund will be benchmarked against the MSCI Europe Index. This fund has no entry load. When you exit the fund, you will have to pay 1 percent if you redeem or switch out within 18 months from the date of allotment.

Amount: The initial application amount is Rs 5,000 per application and in multiples of Re 1 thereafter. For additional applications, you will have to bear Rs 1,000 per application and in multiples of Re 1 thereafter. As far as the amount or number of units for redemption goes Rs 1,000 or 100 units or the account balance, whichever is lower can be redeemed.

Options: You can invest in this fund via the Systemic Investment Plan (SIP) route, the Systematic Transfer Plan or the Systematic Withdrawal Plan. The scheme is available as direct and regular plans. However, the direct plan will have a lower expense ratio.

Label: This fund comes with a brown label, which means investors should understand the principal will be at high risk since it is an equity fund of funds, with investments in securities and equity-related securities of European companies.

Tax: The taxation on these funds is similar to that of debt funds.

Disclaimer: Investors should consult their Certified Financial Planners before investing in financial products.