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JP Morgan US Technology Fund: Recensione e Opinioni

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JP Morgan US Technology Fund: Recensione e Opinioni

Independent Financial Advisor and Co-Founder of Affari Miei

September 4, 2023

You are looking for mutual fund information JP Morgan US Technology Fundprecisely proposed by JP Morganwhich offers investors long-term capital growth?

If it was proposed to you by your consultant or simply if you are wondering if it could be the right solution for you, you are in the right place because today we will analyze all its characteristics and at the end of the article you will also find mine opinions about.

Let’s start!

This article talks about:

A few words about JP Morgan

I believe that JP Morgan Asset Management you don’t need many introductions.

We are talking about one of the most important and famous companies in the world, with over 150 years of experience behind it.

The main objective of the company is to help investors build stronger wallets, thanks to the global network of investment professionals who can help investors and rely on important resources.

JP Morgan has more than 1,000 investment professionals and a $321 million annual research budget.

The global team of JP Morgan it eliminates all the complexities of the main market issues and also provides timely insights to make the best investment decisions.

Identical at the JP Morgan US Technology Fund

This investment fund offers the growth long-term capital gain by investing primarily in US technology companies. The technology sector refers to technology, media and communication services.

The sub-fund follows a bottom-up stock selection process based on fundamental analysis, and above all aims to identify the best investment ideas in sectors that are driven by technology.

Il compartment it has a grade size of $6.42 billion.

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What does it invest in?

The fund invests at least 67% of assets in shares of companies operating in the technology sector which are based or which carry out the predominant part of their economic activity in the United States.

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The sub-fund may invest in small capitalization companies.

At least 51% of assets are invested in companies with positive environmental and social characteristics (according to ESG factors).

In addition, at least 10% of the fund’s assets are invested in money market funds.

Its benchmark

Il benchmark to which the fund refers is the Russell 1000 Equal Weight Technology Index (Total Return Net of 30% withholding tax).

We remind you that this is an actively managed mutual fund, therefore the manager is free to deviate from the same benchmark: this will determine a possible variation in its performance.

Risk profile

As regards the risk profile, which is important to know when choosing an investment, we know that this fund has a risk of 5on a scale ranging from 1 to 7. It is therefore a medium risk.

The risk indicator also refers to the fact that the investment is maintained for at least 5 years.

The risks run by the investor are connected to the securities and techniques of the sub-fund, to the liquidity of the market, to the volatility of the shares and also to the possibility of losing all or part of one’s investment.

Geographical and sectoral composition

As we have already said before, the companies that make up the basket of the fund are all US.

If we analyze in detail the sector composition instead we have these percentages:

Software: 39.1%; Semiconductors: 23.8%; Internet: 21.9%; Hardware: 8.3%; Communication: 2.5%; Service Providers: 2.5%; IT software and services: 0.4%; Liquidity: 1.5%.

Always to give you a better idea of ​​the companies in which you will find yourself investing, let’s see what they are major companies forming part of the basket: among others we have Meta, Nvidia, Tesla, Alphabet and Netflix.

Proceeds Use Policy

How are the proceeds managed? In this case the policy is accumulation, so the accrued proceeds are not distributed among the participants but are reinvested in the sub-fund.

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costs

Now let’s move on to the part of costswhich is one of the most important ones to consider when we have to choose whether or not to invest in a particular fund.

Costs have an impact on returns, and can also have a significant impact on the objective of one’s investment and the final result.

The entry fees maximum are 5%, put those of reimbursement maximums are 0.50%.

The current expenses they are the ones that have the greatest impact, and are equal to 1.70% per year. They are the ones that weigh on management and performance, because they are the ones that reward the manager’s work in his active management of the fund.

Returns

For a level playing field after the costs must be analyzed i returns.

It is important to say and consider that past returns are not and cannot be predictive of future ones in any way, even if they can serve us to give a minimum overview of the investment and to give us a summary idea.

To this end, I am attaching the performance graph directly from the official website, and I invite you to carefully consult the KID of the fund for costs and returns and to make your due assessments:

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Business My Opinions on JP Morgan US Technology Fund

Having reached the end of the analysis of the fund, we have really seen all of his characteristics.

At this point we just have to try to draw some conclusions and understand together whether it could be an interesting investment or not.

I start from an important assumption: I can’t tell you with certainty whether we are faced with a correct or good choice for you, because I don’t know your personal and financial situation, so I don’t have a sure yardstick to tell you “we invest” or “no don’t invest.”

But I can do some general reflectionsvalid for all mutual funds and not only for this fund in particular, to try to clarify your ideas and to make sure that you can think better.

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The fund we have seen that invests in American companies engaged in the sector technology, and that the fund has a medium risk profile. This means first of all that you have to be prepared: prepared to to riskto see your investment at a loss, and above all be prepared to invest for many years as the long time horizon is always in favor of the stock.

One thing you have to consider very carefully though are the costs: they impact returns, they are quite high as you have seen and above all some of them are hidden. Furthermore, the manager has almost carte blanche to achieve the investment objective, so in essence he could make choices that are not entirely convenient for you, or with which you may not agree.

My advice is to define yours first strategy of investment and yours objectivebecause the mutual fund could also be the right tool for you, just as it could not be.

Sitting down and thinking about what you want to get out of your investment will undoubtedly help you make the best decision.

To be honest, I personally prefer other instruments, such as passive management funds, ETFs: these are tools able to replicate a reference benchmark and above all to reduce management costs.

Before saying goodbye, I would also like to leave you some useful resources to start your investment journey based on your personal and investment characteristics:

I wish you good continuation on Affari Miei.

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