JM Large & Mid Cap Fund: An NFO Deep Dive
JM Financial Mutual Fund has introduced a New Fund Offer (NFO), the JM Large & Mid Cap Fund. This open-ended equity scheme aims to blend the stability of large-cap companies with the growth potential of mid-cap stocks.
This dashboard provides a detailed analysis of the fund’s structure, strategy, and market positioning to help you make an informed decision.
Scheme Fundamentals
Scheme Type
Large & Mid Cap Equity
Benchmark Index
Nifty Large Midcap 250 TRI
Risk Level
Very High
NFO and Liquidity Information
Key dates and terms for investors looking to participate in the NFO or plan their liquidity strategy.
| Attribute | Details |
|---|---|
| NFO Period | July 04, 2025 – July 18, 2025 |
| Offer Price | ₹10 per unit |
| Scheme Reopens | August 01, 2025 (for continuous subscription/redemption) |
| Liquidity | Redemption funds sent within 3 business days. |
| Exit Load | No exit load after 180 days. |
Portfolio and Investment Strategy
The fund’s objective is to achieve long-term capital appreciation by investing primarily in equity and equity-related securities of large-cap and mid-cap companies.
Portfolio Allocation
| Asset Class | Allocation (% of Net Assets) | Details |
|---|---|---|
| Equity (Large & Mid Cap) | Minimum 35% in each | Core of the portfolio, targeting growth and stability. |
| Other Equity Securities | Up to 30% | Tactical allocation to other market-cap segments. |
| Debt and Money Market | Up to 30% | For liquidity and to manage volatility. |
| Equity Derivatives | Up to 50% | Used for hedging and portfolio balancing, not speculation. |
Performance & Risk Visualization
Historically, a large-mid cap blend has offered a compelling risk-return profile, capturing a significant portion of mid-cap upside with volatility closer to large caps.
5-Year Historical Data: Benchmark Comparison
Meet the Fund Management Team
The fund is managed by a team with extensive collective experience in the Indian equity markets.
| Name | Role | Experience | Qualifications |
|---|---|---|---|
| Mr. Satish Ramanathan | CIO – Equity | 23 years | CFA, MBA (A&M University), B.Tech (IIT Madras) |
| Mr. Asit Bhandarkar | Senior Fund Manager | 21 years | MMS (Finance) |
| Mr. Deepak Gupta | Senior Fund Manager | 30 years | CA (Mumbai) |
Market Analysis and Outlook
Earnings Growth and Valuations
The top 50 large and mid-cap stocks have shown a robust 3-year Profit After Tax (PAT) CAGR of nearly 68% in FY2024. The fund provides exposure to 20 of 22 sectors, blending stable sectors like Banks and FMCG with high-growth areas like Fintech and E-commerce.
From a valuation perspective, the LargeMidcap 250 index trades at a forward P/E of 24.16x, which is more attractive than the mid-cap index at 30.09x. The PEG ratio of approximately 1.66 also suggests a reasonable risk-adjusted valuation.
FPI Sentiment
A potential reversal of Foreign Portfolio Investment (FPI) outflows is expected to benefit large and mid-cap stocks, which have seen significant FPI interest historically.
JM Fund’s Competitive Advantages
- Skilled Management: Three experienced managers with a combined 70+ years of expertise.
- Research-Backed: Investment decisions are supported by in-depth research from JM MF Research and Ace Equity.
- Risk Management: Mandated portfolio rebalancing within 30 days of passive breaches ensures adherence to risk controls.
- Flexible Exit: The absence of an exit load after 180 days is favorable for medium-term investors.
Conclusion: A Strategic Opportunity?
The JM Large & Mid Cap Fund NFO arrives at a time when mid-cap valuations have seen some correction and corporate earnings are on a recovery path. The fund’s strategy of combining the stability of large-caps with the high-growth potential of mid-caps presents a strategic entry point for investors.
Managed by a seasoned team and supported by a robust investment process, this fund offers a balanced approach for retail and institutional investors aiming to participate in India’s long-term equity growth story. For more details, refer to the official JM Financial Mutual Fund website.