Financial Daily from THE HINDU group of publications
Monday, Dec 23, 2002
`We have set benchmarks in service and safety' Mr Krishnamurthy Vijayan, CEO, JM Mutual
KOLKATA, Dec. 22
THE recent increase in JM Mutual Fund's asset base has become a talking point in fund circles. As distribution houses point out, the growth (of over 10 times in two years) has largely come by way of inflows recorded by the debt products in the JM stable, especially the flagship income fund. Mr Krishnamurthy Vijayan, Chief Executive Officer of JM MF, catches up with Business Line.
In terms of asset growth, how have you fared in recent days?
We closed last month on top of Rs 3,000 crore in assets. This is a major change from what was just two years ago, when we had around Rs 250 crore in open-end income funds.
The last few months have seen a sharp ascent on this front. Consider our end-September tally of around Rs 1,700 crore. So you can imagine what the change has been since then.
Our experience suggests that wider sections of the market have started responding to the performance recorded by JM's fund managers and this is being mirrored in the overall numbers. To what do you attribute this?
We have set benchmarks in service and safety and have tried to deliver top performance, a strategy that has won recognition for its risk-adjusted returns. The whole idea is to win the market's trust. As we always say, this is the time to invest with us and push us towards the Rs 4,000-crore mark. Every little help matters. That way we will be able to move ahead faster.
What could be next ?
The fund will try to reach out to investors more effectively. As I have mentioned already, the next visible stop is when we add another 1,000 crore to our assets. That should take place without compromising on certain basic quality standards. Remember, many organisations far larger than us have been pulled down because they began slipping on standards.
Will JM MF remain chiefly a debt house?
Big ticket has clearly happened on the debt side. From the prevailing trends, it is quite apparent that investor sentiments are more inclined towards debt and not equity. There appears to be a very significant division here.
Going forward, the big picture will be determined by the likes and dislikes of market participants... will they call for a turnabout, or do they like it the way it is?
Take into account the present circumstances and the answer may well come out on its own. Having said this, let me reiterate that JM as a group has thrived only because of the confidence reposed in it by its clients, and the fund cannot be any different.
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