JM Heritage Fund will not invest in meatpacking, tobacco and liquor among other companies. The fund, founded by JM Capital Management, will avoid stocks of companies in the meat and meatpacking business, sericulture and leather goods. Also on the list are pesticide, liquor and tobacco companies and the hospitality industry. Pharmaceutical companies that test on animals are also out of bounds for the fund. "A good number of investors feel strongly against investing in companies which are in conflict with their ethics," said Krishnamurthy Vijayan, the chief executive officer of the company. "Funds which are launched to cater to the needs of investors with strong personal ethic codes at variance with normal investment practices are called ethical funds," says Vijayan.

The mutual fund company is promoting the launch of the fund to coincide with the 2,600th birth anniversary of Lord Mahavir, the founder of the Jain faith and an apostle of ahimsa and non-violence. Expectedly the fund will cater to the Jain community comprising businessmen and industrialists in the city. "We are doing a lot of data mining to shortlist potential investors," Vijayan said, adding, "The fund's marketing team is flipping through the telephone directories of several cities in the country to shortlist potential investors among Jains and other communities who believe strongly in non-violence and ahimsa."

Vijayan does not think that the fund will end up offering lower returns as compared to normal mutual funds. "The experience worldwide is that ethical funds offer higher returns than others as we have to undertake more intensive research before carrying out investment," he said. The fund is now seeking approval from various state government departments across the country so that religious organisations, trusts and charities can invest in it. The promoters are hoping to rope in eminent public personalities who will see to it that the fund confirms to the letter and spirit of its objectives. The fund opens for subscription in the first week of December.

Its promoters hope to mobilise Rs 5 million by the time the issue closes toward the end of the year.

(India Abroad News Service)