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Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
Jp morgan india tax advantage fund application form
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Jp morgan india tax advantage fund application form

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JPMorgan India Tax Advantage Fund Application Form

JPMorgan India Tax Advantage Fund Application Form

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  • 1. Common Application FormCommon Key Information Memorandum and Application FormContinuous offer of Units of R 10 per Unit at Net Asset Value (NAV) based prices, subject to applicable load thereafter.Scheme names:JPMorgan India Equity Fund (an open-ended equity growth scheme)JPMorgan India Liquid Fund (an open-ended liquid scheme)JPMorgan India Treasury Fund (an open ended income scheme)JPMorgan India Smaller Companies Fund (an open-ended equity growth scheme)JPMorgan India Active Bond Fund (an open-ended income scheme)JPMorgan India Tax Advantage Fund (an open-ended equity linked savings scheme)JPMorgan JF Greater China Equity Off-shore Fund (an open ended fund of funds scheme)JPMorgan India Short Term Income Fund (an open ended Income scheme)JPMorgan Emerging Europe, Middle East and Africa Equity-Off-shore Fund (an open ended fund of funds scheme)Sponsor: JPMorgan Asset Management (Asia) Inc.Correspondence Office: 21/F, Chater House, 8 Connaught Place Central, Hong Kong.Trustee: JPMorgan Mutual Fund India Private Limited,Registered Office: J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz - East, Mumbai - 400 098.Asset Management Company: JPMorgan Asset Management India Private Limited,Registered Office: J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz - East, Mumbai - 400 098. Asset Managers to JPMorgan Mutual FundThis Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of theScheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations etc. investorsshould, before investment, refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) available free of cost at any of the InvestorService Centres or distributors or from the website www.jpmorganmf.com.The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, andhave been filed with the Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI,nor has SEBI certified the accuracy or adequacy of this KIM.This memorandum is dated : April 25, 2011.
  • 2. TABLE OF CONTENTS Page No.JPMorgan India Equity Fund .............................................................................................................................................................................. 1JPMorgan India Liquid Fund .............................................................................................................................................................................. 3JPMorgan India Treasury Fund .......................................................................................................................................................................... 6JPMorgan India Smaller Companies Fund ........................................................................................................................................................ 8JPMorgan India Active Bond Fund .................................................................................................................................................................... 11JPMorgan India Tax Advantage Fund ................................................................................................................................................................ 13JPMorgan JF Greater China Equity Off-shore Fund .......................................................................................................................................... 16JPMorgan India Short Term Income Fund ........................................................................................................................................................ 18JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund ................................................................................................ 21Comparison Between the Schemes ................................................................................................................................................................... 24Common Features for all Schemes ................................................................................................................................................................... 26Instructions & Notes ........................................................................................................................................................................................... 32Common Application Form ................................................................................................................................................................................ 35ECS Registration Cum Mandate Application Form ........................................................................................................................................... 37STP / SWP Enrolment Form ............................................................................................................................................................................... 39Form for Nomination / Cancellation of Nomination ........................................................................................................................................ 41Multiple Bank Accounts Registration Form ...................................................................................................................................................... 43 48
  • 3. JPMORGAN INDIA EQUITY FUND Risk and Description Risk Mitigants / Management Strategy specific to Equities#NAME OF THE SCHEME understanding of the business is arrived at,JPMorgan India Equity Fund. enabling the identification of future long-term winners at an early stage.TYPE OF SCHEME Concentration Risk Portfolio construction is the responsibility of theAn open-ended equity growth scheme. investment manager assigned to each fund.INVESTMENT OBJECTIVE There are three objectives to the portfolioThe investment objective of the Scheme is to generate income and long-term construction process:capital growth from a diversified portfolio of predominantly equity and equity- (i) to capture and preserve value from all the bestrelated securities including equity derivatives. ideas by country specialists;However, there can be no assurance that the investment objective of the (ii) to ensure no single decision will derailScheme will be realised. performance; and (iii) to deliver in line with the funds risk/returnASSET ALLOCATION PATTERN profiles.Under normal circumstances, it is anticipated that the asset allocation shall Portfolios are constructed using a disciplinedbe as follows: and tailored approach, and there is a high degree of commonality across accounts with Instrument Normal allocation Risk similar objectives and profiles. During the (% of net assets) profile process, the investment manager assigns a Equity and equity related securities* 65 - 100% Medium to High target percentage weight based upon variations, positive or negative, from the Debt and money market instruments 0 - 35% Low to Medium predetermined fund benchmark weight.* Includes investments in equity and equity related securities issued by Investment managers may also incorporate domestic companies; including derivatives traded on the Futures and their own views on individual stocks and Options segment of Indian stock exchanges not exceeding 50% of the net exercise discretion to align with the above assets of the Scheme, offshore securities, ADRs and GDRs not exceeding guidelines with the objective that is likely to 10% of the net assets of the Scheme as on March 31 of each relevant year. be achieved by inclusion of the stock in a fund Investment in securitised debt may be made to the extent of 20% of net portfolio. The investment manager will also assets of the Scheme. reconcile any other anomalies between the stock rankings and portfolio requirements withRISK MITIGATION FACTORS the overall objective of adding value to the fundRisk and Description Risk Mitigants / Management Strategy portfolio.specific to Equities# The Risk Management / Middle Office oversees investment managers to ensure compliance withQuality Risk The stock selection process is an important part the funds internal requirements. The buy / sellRisk of investing in of the idea generation stage, as it provides the decisions generated at the portfolio constructionunsustainable / weak greater part of added value to the investments. stage of the process are automatically checkedcompanies Underpinning the stock selection process is the against fund guidelines, and electronically rigorous research conducted by dedicated forwarded to the trading team for execution. specialists. The approach to stock selection is largely specific, which means that these investment Liquidity Risk Dealing in volatile, often illiquid markets imposes professionals have the responsibility to design and High impact costs a cost on an active investment manager. The refine their stock selection process to cope with responsibility for minimizing the performance drag the dynamic local factors and market conditions. lies with the Dealing team whose focus is to Quality analysis based investment approach: minimize market impact and transaction costs. The (i) Management competitive advantages in achieving this objective are: (ii) Capital structure (i) An experienced team. (iii) Sustainability of competitive advantage (ii) State of the art systems and on-going (iv) Return on equity investment in trading technology. (v) Industry attractiveness (iii) Analysis of historical transactions and In general, there are three primary sources of associated impact costs used to determine investment return which the investment trading strategies. professionals normally focus on and they form the (iv) Low commission rates paid to brokers, reducing basic premise of the stock selection process: direct costs per trade. (i) Growth - companies that exhibit sustainable (v) Significant overall commission payout ensuring earnings growth in excess of the market premium service from investment banks and through an economic cycle; brokerage firms. (ii) Valuations - quantitative analysis in evaluating The success of the dealing team can be measured the value and profitability of the company; by comparing each execution to the Volume (iii) Dividend yield - an additional source of return, Weighted Average Price (VWAP) and on-line over and above capital appreciation. through the independent Best Execution Comparison Service (BECS) which comparesPrice Risk During company visits, qualitative assessments of transaction costs with those of the competition.Risk of overpaying for the relative growth prospects of the companies Effectiveness of the dealing team is measured ona company concerned are made and strategies are decided to an ongoing basis. create shareholder value. Industries in which Volatility As explained above, the volatility arising out of companies operate are analysed along with the Price volatility due to portfolio specific factors are being mitigated using competitive landscape as well as the management company or portfolio a combination of various methods as explained strategy to enhance competitive advantage and specific factors above. returns. As part of the process, meetings are organised not only with companies that fall within Event Risk As explained above, the volatility arising out of the core stock coverage, but also with their Price volatility due to portfolio specific factors are being mitigated using competitors, distributors, suppliers and other company or portfolio a combination of various methods as explained stakeholders in order to obtain a complete picture specific events above. of the industry/company and other investment opportunities. In the process, a clear # Includes equity and equity related securities. 1
  • 4. RISK PROFILE OF THE SCHEME be treated as delivery to the investor. The AMC / Registrar are not responsibleMutual Fund Units involve investment risks including the possible loss of for any delayed delivery or non-delivery or any consequences thereof, if theprincipal. Please read the SID carefully for details on risk factors before despatch has been made correctly as stated in this paragraph.investment. Standard and Scheme Specific Risk Factors are summarized atthe end of this document. BENCHMARK FOR PERFORMANCE COMPARISON BSE-200 index.PLANS AND OPTIONSThe Scheme offers two options - growth option and dividend option. The DIVIDEND POLICYdividend option offers dividend payout and dividend reinvestment. Under the The Trustee may decide to distribute by way of dividend, the surplus by way ofgrowth option, no dividend will be declared. Under the dividend option, a realised profit, dividends and interest, net of losses, expenses and taxes, ifdividend may be declared by the Trustee, at its discretion, from time to time any, to Unit Holders in the dividend option of the Scheme if such surplus is(subject to the availability of distributable surplus as calculated in accordance available and adequate for distribution in the opinion of the Trustee. Thewith the Regulations). If the investor does not clearly specify the choice of Trustee’s decision with regard to availability and adequacy, rate, timing andoption at the time of investing, it will be treated as a growth option. frequency of distribution shall be final. The dividend will be due to only thoseIf the investor does not clearly specify the choice of dividend payout or Unit Holders whose names appear in the register of Unit Holders in the dividendreinvestment options within the dividend option, he will be treated as having option of the Scheme on the record date which will be announced in advanceselected the reinvestment option. in accordance with MF Regulations. The Unit Holders have the option of receiving the dividend or reinvesting the same. The dividend will be reinvestedAPPLICABLE NAV at the Applicable NAV of the immediately following Business Day.The Cut-off time for the Scheme is 3 pm, and the Applicable NAV will be as The AMC shall dispatch to the Unit Holders, the dividend warrants within 30under: (thirty) days of the date of declaration of dividend. The dividend distributionFor Purchase / Redemption procedure shall be in accordance with the Regulations.(a) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment instruments accepted at a Designated NAME OF THE FUND MANAGER(S) Collection Centre up to 3.00 pm on a Business Day, the NAV of such day For Equity : Mr. Harshad Patwardhan & Mr. Amit Gadgil will be applicable. For Debt : Mr. Nandkumar Surti & Mr. Namdev Chougule(b) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment instruments accepted at a Designated PERFORMANCE OF THE SCHEME Collection Centre after 3.00 pm on a Business Day, the NAV of the next Scheme Returns as on 31st March, 2011 Business Day will be applicable. Scheme returns (%) BSE 200 (%)The above will be applicable only for cheques / demand drafts / paymentinstruments payable locally in the city in which a Designated Collection Centre Since inception 8.26% 8.75%is located. No outstation cheques will be accepted. 1 year 14.42% 8.15%For Switches 3 year 7.39% 7.17%Valid applications for switch-out shall be treated as applications for Absolute returns for each financial year for the last 4 yearsRedemption and valid applications for switch-in shall be treated as Scheme returns BSE 200applications for Purchase, and the provisions of the Cut-off time and the 120.00% – *11.73% *9.15% 92.87%Applicable NAV mentioned in the Offer Document as applicable to Purchase 90.00% – 83.19%and Redemption shall be applied respectively to the switch-in and switch- 60.00% –out applications. 30.00% – 14.42% 8.15%MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 0.00% – -40.92% -40.98% Minimum initial R 5,000 per application and in -30.00% – application amount multiples of R 1/- thereof. -60.00% – 2007-08 2008-09 2009-10 2010-11 Minimum additional R 1,000 per application and in multiples Financial Years application amount of R 1/- thereof Note: CAGR are given for more than one year. Absolute returns of the growth Minimum redemption / R 1,000 or 100 Units. (The minimum amount option are computed for a period of less than one year. "Since inception" no. of Units balance after Redemption should be R 500. returns are calculated on R 10 invested at inception. In case the balance falls below R 500 the Past performance may or may not be sustained in future. All calculations units will be automatically redeemed along assume that all payouts during the period have been re-invested in the units with the last redemption request.) of the scheme. *Allotment date: 14 June, 2007DESPATCH OF REPURCHASE (REDEMPTION) REQUESTRedemption proceeds will be paid by cheques, marked “A/c Payee only” and EXPENSES OF THE SCHEMEdrawn in the name of the sole holder / first-named holder (as determined by As per the Regulations, the following fees and expenses can be charged to thethe records of the Registrar). Scheme:The Mutual Fund will endeavour to despatch the Redemption proceeds within3 Business Days from the acceptance of the Redemption request, but not 1. Initial issue expensesbeyond 10 Business Days from the date of Redemption. If the payment is not No initial issue expenses were charged to the scheme.made within the period stipulated in the Regulations, the Unit Holder shall be 2. Recurring expensespaid interest @ 15% p.a. for the delayed period and the interest shall be borne These are the fees and expenses for operating the Scheme. These expensesby the AMC. include investment management and advisory fee charged by the AMC, theThe bank name and bank account number, as specified in the Registrar’s Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inrecords, will be mentioned in the cheque. The cheque will be payable at par at the table below:all the cities having ISCs. If the Unit Holder resides in any other city, he will be The AMC has estimated that upto 2.50% of the daily average net assets of thepaid by a demand draft payable at the city of his residence and the demand Scheme will be charged to the Scheme as expenses. For the actual currentdraft charges shall be borne by the AMC. The proceeds may be paid by way of expenses being charged, the investor should refer to the website of the Mutualdirect credit / NEFT / RTGS / any other manner through which the investor’s Fund (www.jpmorganmf.com).bank account specified in the Registrar’s records may be credited with theRedemption proceeds. Nature of expense % of net assets Investment management & advisory fees 1.250Note: The Trustee, at its discretion at a later date, may choose to alter or addother modes of payment. Custodian fees 0.100The Redemption proceeds will be sent by courier or (if the addressee city is Registrar & transfer agent fees including 0.150not serviced by the courier) by registered post. The despatch for the purpose cost related to providing account statement,of delivery through the courier / postal department, as the case may be, shall dividend/redemption cheques/warrants etc. 2
  • 5. Nature of expense % of net assets All Exit Loads are intended to enable the AMC to recover expenses incurred for promotion or distribution and sale of the Units of the Scheme. All Loads Marketing & selling expenses including will be retained in the Scheme in a separate account and will be utilised to agent’s commission and statutory advertisement meet the distribution and marketing expenses. Any surplus amounts in this 0.505 Brokerage and transaction cost pertaining to account may be credited to the Scheme whenever considered appropriate by the distribution of units the AMC. Audit fees/fees and expenses of the Trustee 0.065 DAILY NET ASSET VALUE (NAV) PUBLICATION Costs related to investor communications 0.040 The Mutual Fund shall declare the NAV of the Scheme on every Business Day on AMFI’s website www.amfiindia.com by 9.00 p.m. and also on its own website Costs of fund transfer from location to location 0.010 www.jpmorganmf.com. In case of any delay, the reasons for such delay would Other Expenses* 0.380 be explained to AMFI. If the NAVs are not available before commencement of business hours on the following Business Day due to any reason, the Mutual Total Annual Scheme Recurring Expenses 2.500 Fund shall issue a press release providing reasons and explaining when the*Other expenses: Any other expenses which are directly attributable to the Mutual Fund would be able to publish the NAVs.Scheme may be charged with approval of the Trustee within the overall limitsas specified in the Regulation 52(6) except those expenses which are specificallyprohibited. JPMORGAN INDIA LIQUID FUNDThese estimates have been made in good faith as per the information availableto the AMC based on past experience and are subject to change inter-se. Types NAME OF THE SCHEMEof expenses charged shall be as per the SEBI (MF) Regulations. JPMorgan India Liquid Fund.The AMC may incur actual expenses which may be more or less than thoseestimated above, under any head and / or in total. The AMC will charge the TYPE OF SCHEMEScheme such actual expenses incurred, subject to the statutory limit prescribed An open-ended liquid scheme.in the Regulations, the current limits of which are given below:Maximum recurring expenses: INVESTMENT OBJECTIVE The investment objective of the Scheme is to provide reasonable returns, Daily average net assets Maximum, as a % of commensurate with low risk while providing a high level of liquidity, through daily average net assets a portfolio of money market and debt securities. However there can be no First R 100 crores 2.50% assurance that the investment objectives of the Scheme will be realized. Next R 300 crores 2.25% Next R 300 crores 2.00% ASSET ALLOCATION PATTERN Balance assets 1.75% Under normal circumstances it is anticipated that the asset allocation shall be as follows:Maximum investment management fee to be charged by the AMC: For both Plans (Retail Plan & Super Institutional Plan) w.e.f. May 1, 2009 Daily average net assets Maximum, as a % of daily average net assets Investments Normal asset allocation Risk (% of net assets) profile First R 100 crores 1.25% Balance assets 1.00% Money market instruments Up to 100% Low (including cash and reverse repoAny excess over these limits will be borne by the AMC. and debt instruments with maturityRecurring expenses (Actual expenses for the financial year ending): up to 91 days)* Particulars March Securitised debt instruments Up to 30% Low 2011 with maturity up to 91 days Total Recurring expenses as a percentage 2.26% *Investment in Derivatives - Up to 10% of the net asset of the Scheme of Daily / Weekly average net assets RISK MITIGATION FACTORSLOAD STRUCTURE OF THE SCHEME Concentration Risk Portfolio construction is the responsibility of the1. Entry Load: investment manager assigned to each fund. NIL There are three objectives to the portfolio2. Exit Load: construction process: (i) to capture and preserve value from all the best For redemption Exit Load ideas by country specialists; (% of applicable NAV) (ii) to ensure no single decision will derail Within 12 months from the date of 1.00% performance; and allotment in respect of Purchase made (iii) to deliver in line with the funds risk/return other than through SIP profiles. Within 12 months from the date of 1.00% Portfolios are constructed using a disciplined allotment in respect of the first and tailored approach, and there is a high Purchase made through SIP degree of commonality across accounts with similar objectives and profiles. During theA switch-out or a withdrawal under SWP shall also attract an Exit Load like any process, the investment manager assigns aRedemption. target percentage weight based uponNo load for units allotted under dividend reinvestment option. variations, positive or negative, from the predetermined fund benchmark weight.No Exit Loads will be chargeable in case of switches made between different Investment managers may also incorporateoptions of the Scheme. their own views on individual security andSubject to the Regulations, the Trustee retains the right to change / impose exercise discretion to align with the abovean Exit Load. guidelines with the objective that is likely toTo know the latest position on Loads structure prior to investing / be achieved by inclusion of the security in aredemption, investors are advised to contact any of the ISCs or the AMC at fund portfolio. The investment manager willits toll-free number "1-800-22-5763". also reconcile any other anomalies between the security rankings and portfolio requirementsThe investor is requested to check the prevailing load structure of the Scheme with the overall objective of adding value tobefore investing. the fund portfolio. 3
  • 6. The Risk Management / Middle Office oversees For allotment of units in respect of switch-in to the Scheme from other investment managers to ensure compliance with schemes, the following needs to be complied with: the funds internal requirements. i. Application for switch-in is received before the applicable cut-off time.Liquidity Risk Dealing in volatile, often illiquid markets imposes ii. Funds for the entire amount of Subscription/Purchase as per the switch-High impact costs a cost on an active investment manager. The in request are credited to the bank account of the switch-in Scheme before responsibility for minimizing the performance drag the cut-off time. lies with the Dealing team whose focus is to iii. The funds are available for utilization before the cut-off time without minimize market impact and transaction costs. The availing any credit facility whether intra-day or otherwise, by the switch- competitive advantages in achieving this objective in Scheme. are: The above will be applicable only for cheques / demand drafts / payment (i) An experienced team. instruments payable locally in the city in which a Designated Collection Centre (ii) State of the art systems and on-going is located. No outstation cheques will be accepted. investment in trading technology. (iii) Analysis of historical transactions and For Redemption under both the Plans associated impact costs used to determine (a) where the application is received upto 3.00 p.m. - the closing NAV of the trading strategies. day immediately preceding the next Business Day ; and (iv) Low commission rates paid to brokers, reducing (b) where the application is received after 3.00 p.m. - the closing NAV of the direct costs per trade. next Business Day. (v) Significant overall commission payout ensuring premium service from investment banks and Note: In case the application is received on a Non-Business Day, it will be brokerage firms. considered as if received on the Next Business Day. Effectiveness of the dealing team is measured on For Switches an ongoing basis. Valid applications for ‘switch-out’ shall be treated as applications for Redemption and valid applications for ‘switch-in’ shall be treated asVolatility As explained above, the volatility arising out of applications for Purchase, and the provisions of the Cut-off time and thePrice volatility due to portfolio specific factors are being mitigated using Applicable NAV mentioned in this SID as applicable to Purchase andcompany or portfolio a combination of various methods as explained Redemption shall be applied respectively to the ‘switch-in’ and ‘switch-out’specific factors above. applications.RISK PROFILE OF THE SCHEME MINIMUM APPLICATION AMOUNT / NUMBER OF UNITSMutual Fund Units involve investment risks including the possible loss of Retail Plan Superprincipal. Please read the SID carefully for details on risk factors before Institutional Planinvestment. Standard and Scheme Specific Risk Factors are summarized atthe end of this document. Minimum initial R 5,000 per R 1 Crore per application amount application and in application and inPLANS & OPTIONS multiples of R 1 multiples of R 1 thereafter. thereafter.The Scheme has two plans: Retail Plan and Super Institutional Plan.Retail Plan: Minimum additional R 1,000 per R 1 per application application amount application and in and in multiples ofGrowth: Under the growth option no dividend will be declared. multiples of R 1 thereafterDividend: The dividend option offers daily, weekly, fortnightly and monthly R 1 thereafterdividend reinvestment options. Minimum redemption R 5,000 or R 5,000 orSuper Institutional Plan: amount / no. of Units 500 Units 500 UnitsGrowth: Under the growth option no dividend will be declared. DESPATCH OF REPURCHASE (REDEMPTION) REQUESTDividend: The dividend option offers daily, weekly, fortnightly and monthly Redemption proceeds will be paid by cheques, marked “A/c Payee only” anddividend reinvestment options. drawn in the name of the sole holder / first-named holder (as determined byUnder the Super Institutional Plan, the dividend option will also offer weekly, the records of the Registrar).fortnightly and monthly payout. The Mutual Fund will endeavour to despatch the Redemption proceeds withinUnder the dividend option, a dividend may be declared by the Trustee, at its 1 Business Day from the acceptance of the Redemption request, but not beyonddiscretion, from time to time (subject to the availability of distributable surplus 10 Business Days from the date of Redemption. If the payment is not madeas calculated in accordance with the Regulations). within the period stipulated in the Regulations, the Unit Holder shall be paid interest @ 15% p.a. for the delayed period and the interest shall be borne byAPPLICABLE NAV the AMC.For Purchase under both the Plans The bank name and bank account number, as specified in the Registrar’si. where the application is received upto 2.00 p.m. on a day and funds are records, will be mentioned in the cheque. The cheque will be payable at par at available for utilization before the cut-off time without availing any credit all the cities having ISCs. If the Unit Holder resides in any other city, he will be facility, whether, intra-day or otherwise – the closing NAV of the day paid by a demand draft payable at the city of his residence and the demand immediately preceding the day of receipt of application; draft charges shall be borne by the AMC. The proceeds may be paid by way ofii. where the application is received after 2.00 p.m. on a day and funds are direct credit / NEFT / RTGS / any other manner through which the investor’s available for utilization on the same day without availing any credit facility, bank account specified in the Registrar’s records may be credited with the whether, intra-day or otherwise – the closing NAV of the day immediately Redemption proceeds. preceding the next business day; and Note: The Trustee, at its discretion at a later date, may choose to alter or addiii. irrespective of the time of receipt of application, where the funds are not other modes of payment. available for utilization before the cut-off time without availing any credit The Redemption proceeds will be sent by courier or (if the addressee city is facility, whether, intra-day or otherwise – the closing NAV of the day not serviced by the courier) by registered post. The despatch for the purpose immediately preceding the day on which the funds are available for of delivery through the courier / postal department, as the case may be, shall utilization. be treated as delivery to the investor. The AMC / Registrar are not responsibleFor allotment of Units in respect of Purchase in the Scheme, the for any delayed delivery or non-delivery or any consequences thereof, if thefollowing needs to be complied with: despatch has been made correctly as stated in this paragraph.i. Application is received before the applicable cut-off time. BENCHMARK FOR PERFORMANCE COMPARISONii. Funds for the entire amount of Subscription/Purchase as per the CRISIL Liquid Fund Index. application are credited to the bank account of the Scheme before the cut-off time. DIVIDEND POLICYiii. The funds are available for utilization before the cut-off time without The Trustee may decide to distribute by way of dividend, the surplus by way of availing any credit facility whether intra-day or otherwise, by the Scheme. realised profit, dividends and interest, net of losses, expenses and taxes, if 4
  • 7. any, to Unit Holders in the dividend option of the Scheme if such surplus is Nature of expense % of net assetsavailable and adequate for distribution in the opinion of the Trustee. TheTrustee’s decision with regard to availability and adequacy, rate, timing and Retail Superfrequency of distribution shall be final. The dividend will be due to only those Plan Institutional PlanUnit Holders whose names appear in the register of Unit Holders in the dividendoption of the Scheme on the record date which will be announced in advance Costs of fund transfer 0.005 0.005in accordance with MF Regulations. The Unit Holders have the option of Service tax 0.033 0.033receiving the dividend or reinvesting the same. The dividend will be reinvestedat the Applicable NAV of the immediately following Business Day. The AMC Other operating expenses* 0.089 0.049shall dispatch to the Unit Holders, the dividend warrants within 30 (thirty) Total annual scheme recurring expenses 0.800 0.500days of the date of declaration of dividend. The dividend distribution procedureshall be in accordance with the Regulations. * Other expenses: Any other expenses which are directly attributable to the Scheme may be charged with approval of the Trustee within the overall limitsNAME OF THE FUND MANAGER(S) as specified in the Regulation 52(6) except those expenses which are specificallyMr. Nandkumar Surti and Mr. Namdev Chougule. prohibited. The AMC reserves the right to change the above, both inter se or in total, subject to prevailing Regulations.PERFORMANCE OF THE SCHEME These estimates have been made in good faith as per the information availableScheme Returns as on 31st March, 2011 to the AMC based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations. Retail CRISIL Liquid Super CRISIL Liquid (%) Fund Index (%) Institutional (%) Fund Index (%) The AMC will charge the Scheme such actual expenses incurred, subject toSince inception 6.24% 5.89% 7.01% 6.31% the statutory limit prescribed in the Regulations, the current limits of which are given below:1 year 6.57% 6.21% 6.79% 6.21%3 year NA NA 6.83% 6.22% Maximum recurring expenses : Absolute returns for each financial year for the last 4 years Daily average net assets Maximum, as a % of daily average net assets Retail Super Institutional CRISIL Liquid Fund Index 9.18% 8.81% First R 100 crores 2.25% 10.00% – 8.00% – 6.79% Next R 300 crores 2.00% #4.98% 6.57% 6.21% 6.00% – Next R 300 crores 1.75% *4.18% #4.83% 4.36% 4.57% 4.00% – *3.53% 3.69% Balance assets 1.50% 2.00% – 0.00% – Maximum investment management fee to be charged by the AMC: 2007-08 2008-09 2009-10 2010-11 Daily average net assets Maximum, as a % of Financial Years daily average net assetsNote: CAGR are given for more than one year. Absolute returns of the growth First R 100 crores 1.25%option are computed for a period of less than one year. "Since inception" Balance assets 1.00%returns are calculated on R 10 invested at inception.Past performance may or may not be sustained in future. All calculations Any excess over these limits will be borne by the AMC.assume that all payouts during the period have been re-invested in the units Recurring expenses (Actual expenses for the financial year ending):of the scheme. Particulars MarchAllotment dates : 2011*Super Institutional Plan : 21 September, 2007.#Retail Plan : 16 September, 2008. Super Institutional Plan: Total Recurring expenses as a percentage of Daily / Weekly 0.35%EXPENSES OF THE SCHEME average net assetsAs per the Regulations, the following fees and expenses can be charged to the Retail Plan:Scheme: Total Recurring expenses as a percentage of Daily / Weekly 0.55% average net assets1. Initial issue expensesNo initial issue expenses were charged to the Scheme.2. Recurring expenses LOAD STRUCTURE OF THE SCHEME Entry Load: NILThese are the fees and expenses for operating the Scheme. These expensesinclude investment management and advisory fee charged by the AMC, the Exit Load: NILRegistrar and Transfer Agents’ fee, marketing and selling costs etc. as given in To know the latest position on Loads structure prior to investing /the table below: redemption, investors are advised to contact any of the ISCs or the AMC atThe AMC has estimated that upto 2.25% of the daily average net assets of the its toll-free number "1-800-22-5763".Scheme will be charged to the Scheme as expenses. For the actual current The investor is requested to check the prevailing load structure of the Schemeexpenses being charged, the investor should refer to the website of the Mutual before investing.Fund (www.jpmorganmf.com). All Loads are intended to enable the AMC to recover expenses incurred forNature of expense % of net assets promotion or distribution and sales of the Units of the Scheme. All Loads will Retail Super be retained in the Scheme in a separate account and will be utilised to meet Plan Institutional Plan distribution and marketing expenses. Any surplus amounts in this account may be credited to the Scheme whenever considered appropriate by the AMC.Investment management fee 0.200 0.200Trustee fees 0.005 0.005 DAILY NET ASSET VALUE (NAV) PUBLICATION The AMC will calculate and disclose the NAV of the Scheme on every BusinessCustodian fees 0.005 0.005 Day. The NAV of the Scheme will be made available at all ISCs of the AMC. TheRegistrar & transfer agent fees 0.040 0.030 AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com)Marketing & selling expenses 0.400 0.150 and of the Association of Mutual Funds in India (www.amfiindia.com) byincluding agents commission 9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI. If the NAVs are not available beforeAudit fees and statutory advertisements 0.015 0.015 commencement of business hours on the following Business Day due to anyUnit Holder servicing, investor 0.008 0.008 reason, the Fund shall issue a press release providing reasons and explainingcommunication expenses when the Fund would be able to publish the NAV. 5
  • 8. JPMORGAN INDIA TREASURY FUND (ii) State of the art systems and on-going investment in trading technology. (iii) Analysis of historical transactions andNAME OF THE SCHEME associated impact costs used to determineJPMorgan India Treasury Fund. trading strategies. (iv) Low commission rates paid to brokers, reducingTYPE OF SCHEME direct costs per trade.An open-ended income scheme. (v) Significant overall commission payout ensuring premium service from investment banks and brokerage firms.INVESTMENT OBJECTIVEThe investment objective is to provide liquidity and optimal returns to investors Effectiveness of the dealing team is measured onby investing primarily in a mix of short-term debt and money market an ongoing basis.instruments which results in a portfolio having marginally higher maturity Volatility As explained above, the volatility arising out ofand moderately higher credit risk as compared to a liquid fund, at the same Price volatility due to portfolio specific factors are being mitigated usingtime maintaining a balance between safety and liquidity. However, there can company or portfolio a combination of various methods as explainedbe no assurance that the investment objective of the Scheme will be specific factors above.realized.ASSET ALLOCATION PATTERN RISK PROFILE OF THE SCHEME Mutual Fund Units involve investment risks including the possible loss ofUnder normal circumstances it is anticipated that the asset allocation shall be principal. Please read the SID carefully for details on risk factors beforeas follows: investment. Standard and Scheme Specific Risk Factors are summarized atFor both Plans (Retail Plan & Super Institutional Plan) the end of this document. Investments Normal asset allocation Risk (% of net assets) profile PLANS & OPTIONS The Scheme has two plans: Retail Plan and Super Institutional Plan. Money market & debt instruments with 70 - 100% Low maturity / average maturity / interest Retail Plan: rate reset not greater than 1 year Growth: Under the growth option no dividend will be declared. Debt instruments with maturity greater 0 - 30% Low to Dividend: The dividend option offers daily, weekly, fortnightly and monthly than 1 year but less than 3 years* Medium dividend reinvestment options.* Debt Instruments include securitised debt. Securitised debt can be up to Super Institutional Plan: 50% of the net assets. Investment in Derivatives - up to 50% of the net Growth: Under the growth option no dividend will be declared. assets of the Scheme. Dividend: The dividend option offers daily, weekly, fortnightly and monthly dividend reinvestment options.RISK MITIGATION FACTORS Under the Super Institutional Plan, the dividend option will also offer weekly,Concentration Risk Portfolio construction is the responsibility of the fortnightly and monthly payout. investment manager assigned to each fund. Under the dividend option, a dividend may be declared by the Trustee, at its There are three objectives to the portfolio discretion, from time to time (subject to the availability of distributable surplus construction process: as calculated in accordance with the Regulations). (i) to capture and preserve value from all the best ideas by country specialists; APPLICABLE NAV (ii) to ensure no single decision will derail The Cut-off time for the Scheme is 3.00 p.m. and the Applicable NAV will be as performance; and under: (iii) to deliver in line with the funds risk/return profiles. For Purchase Portfolios are constructed using a disciplined a. where the application is received upto 3.00 pm with a local cheque or and tailored approach, and there is a high demand draft payable at par at the place where it is received, with amount degree of commonality across accounts with less than R 1 crore – closing NAV of the day of receipt of application; similar objectives and profiles. During the b. where the application is received after 3.00 pm with a local cheque or process, the investment manager assigns a demand draft payable at par at the place where it is received, with amount target percentage weight based upon less than R 1 crore – closing NAV of the next Business Day; variations, positive or negative, from the c. where the application is received with a local cheque or demand draft predetermined fund benchmark weight. payable at par at the place where it is received, with amount equal to or Investment managers may also incorporate more than R 1 crore irrespective of the time of receipt of application, the their own views on individual security and closing NAV of the day on which the funds are available for utilisation exercise discretion to align with the above shall be applicable. guidelines with the objective that is likely to be achieved by inclusion of the security in a Applicability of NAV for the Scheme with an amount equal to or more than fund portfolio. The investment manager will R 1 crore: also reconcile any other anomalies between the a) For allotment of units in respect of purchase in the Scheme, the following security rankings and portfolio requirements needs to be complied with: with the overall objective of adding value to i. Application is received before the applicable cut-off time. the fund portfolio. ii. Funds for the entire amount of subscription/purchase as per the The Risk Management / Middle Office oversees application are credited to the bank account of the respective Scheme investment managers to ensure compliance with before the cutoff time. the funds internal requirements. iii. The funds are available for utilization before the cut-off time withoutLiquidity Risk Dealing in volatile, often illiquid markets imposes availing any credit facility whether intra-day or otherwise, by theHigh impact costs a cost on an active investment manager. The respective Scheme. responsibility for minimizing the performance drag b) For allotment of units in respect of switch-in to the Scheme from other lies with the Dealing team whose focus is to schemes, the following needs to be complied with: minimize market impact and transaction costs. The competitive advantages in achieving this objective i. Application for switch-in is received before the applicable cut-off time. are: ii. Funds for the entire amount of subscription/purchase as per the switch- (i) An experienced team. in request are credited to the bank account of the respective switch-in Scheme before the cut-off time. 6
  • 9. iii. The funds are available for utilization before the cut-off time without NAME OF THE FUND MANAGER(S) availing any credit facility whether intra-day or otherwise, by the Mr. Nandkumar Surti and Mr. Namdev Chougule. respective switch-in Scheme or Plans or options thereunder.For Redemption PERFORMANCE OF THE SCHEMEa. where the application is received up to 3.00 pm – closing NAV of the day Scheme Returns as on 31st March, 2011 of receipt of application; and Retail CRISIL Liquid Super CRISIL Liquidb. an application is received after 3.00 pm – closing NAV of the next Business (%) Fund Index (%) Institutional (%) Fund Index (%) Day.The above will be applicable only for cheques / demand drafts / payment Since inception 6.41% 5.89% 7.27% 6.31%instruments payable locally in the city in which a Designated Collection Centre 1 year 6.49% 6.21% 6.75% 6.21%is located. No outstation cheques will be accepted. 3 years NA NA 7.04% 6.22%For Switches Absolute returns for each financial year for the last 4 yearsValid applications for switch-out shall be treated as applications forRedemption and valid applications for switch-in shall be treated as Retail Super Institutional CRISIL Liquid Fund Indexapplications for Purchase, and the provisions of the Cut-off time and the 10.00% – 9.25% 8.81%Applicable NAV mentioned in the Offer Document as applicable to Purchase 8.00% – 6.75%and Redemption shall be applied respectively to the switch-in and switch- #4.99% 6.49% 6.21% 6.00% – #4.81% 4.89% 5.15%out applications. *4.46% 4.00% – *3.56% 3.69% 2.00% –MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 0.00% – Retail Plan Super Institutional Plan 2007-08 2008-09 2009-10 2010-11 Financial Years Minimum initial R 5,000 per application R 1 Crore per application application amount and in multiples and in multiples Note: CAGR are given for more than one year. Absolute returns of the growth of R 1 thereafter. of R 1 thereafter. option are computed for a period of less than one year. "Since inception" returns are calculated on R 10 invested at inception. Minimum additional R 1,000 per application R 1 per application and in application amount and in multiples multiples of R 1 thereafter Past performance may or may not be sustained in future. All calculations of R 1 thereafter assume that all payouts during the period have been re-invested in the units of the scheme. Minimum redemption R 5,000 or 500 Units R 5,000 or 500 Units Allotment dates: amount / no. of Units *Super Institutional Plan : 21 September, 2007. #Retail Plan : 16 September, 2008.DESPATCH OF REPURCHASE (REDEMPTION) REQUESTRedemption proceeds will be paid by cheques, marked “A/c Payee only” and EXPENSES OF THE SCHEMEdrawn in the name of the sole holder / first-named holder (as determined by As per the Regulations, the following fees and expenses can be charged to thethe records of the Registrar). Scheme:The Mutual Fund will endeavour to despatch the Redemption proceeds within3 Business Days from the acceptance of the Redemption request, but not 1. Initial issue expensesbeyond 10 Business Days from the date of Redemption. If the payment is not No initial issue expenses were charged to the scheme.made within the period stipulated in the Regulations, the Unit Holder shall be 2. Recurring expensespaid interest @15% p.a. for the delayed period and the interest shall be borne These are the fees and expenses for operating the Scheme. These expensesby the AMC. include investment management and advisory fee charged by the AMC, theThe bank name and bank account number, as specified in the Registrar’s Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inrecords, will be mentioned in the cheque. The cheque will be payable at par at the table below:all the cities having ISCs. If the Unit Holder resides in any other city, he will be The AMC has estimated that upto 2.25% of the daily average net assets of thepaid by a demand draft payable at the city of his residence and the demand Scheme will be charged to the Scheme as expenses. For the actual currentdraft charges shall be borne by the AMC. The proceeds may be paid by way of expenses being charged, the investor should refer to the website of the Mutualdirect credit / NEFT / RTGS / any other manner through which the investor’s Fund (www.jpmorganmf.com).bank account specified in the Registrar’s records may be credited with theRedemption proceeds. Nature of expense % of net assetsNote: The Trustee, at its discretion at a later date, may choose to alter or add Retail Superother modes of payment. Plan Institutional PlanThe Redemption proceeds will be sent by courier or (if the addressee city is Investment management fee 0.350 0.350not serviced by the courier) by registered post. The despatch for the purpose Trustee fees 0.005 0.005of delivery through the courier / postal department, as the case may be, shallbe treated as delivery to the investor. The AMC / Registrar are not responsible Custodian fees 0.005 0.005for any delayed delivery or non-delivery or any consequences thereof, if the Registrar & transfer agent fees 0.040 0.030despatch has been made correctly as stated in this paragraph. Marketing & selling expenses 0.340 0.200 including agent’s commissionBENCHMARK FOR PERFORMANCE COMPARISON Audit fees and statutory advertisements 0.015 0.015CRISIL Liquid Fund Index. Unit Holder servicing, investor 0.008 0.008DIVIDEND POLICY communication expensesThe Trustee may decide to distribute by way of dividend, the surplus by way of Costs of fund transfer 0.005 0.005realised profit, dividends and interest, net of losses, expenses and taxes, if Service tax 0.039 0.039any, to Unit Holders in the dividend option of the Scheme if such surplus isavailable and adequate for distribution in the opinion of the Trustee. The Other operating expenses* 0.093 0.043Trustee’s decision with regard to availability and adequacy, rate, timing and Total annual scheme recurring expenses 0.900 0.700frequency of distribution shall be final. The dividend will be due to only thoseUnit Holders whose names appear in the register of Unit Holders in the dividend * Other expenses: Any other expenses which are directly attributable to theoption of the Scheme on the record date which will be announced in advance Scheme may be charged with approval of the Trustee within the overall limitsin accordance with MF Regulations. The Unit Holders have the option of as specified in the Regulation 52(6) except those expenses which are specificallyreceiving the dividend or reinvesting the same. The dividend will be reinvested prohibited. The AMC reserves the right to change the above, both inter se orat the Applicable NAV of the immediately following Business Day. The AMC in total, subject to prevailing Regulations.shall dispatch to the Unit Holders, the dividend warrants within 30 (thirty) These estimates have been made in good faith as per the information availabledays of the date of declaration of dividend. The dividend distribution procedure to the AMC based on past experience and are subject to change inter-se. Typesshall be in accordance with the Regulations. of expenses charged shall be as per the SEBI (MF) Regulations. 7
  • 10. The AMC will charge the Scheme such actual expenses incurred, subject to Instrument Normal allocation Riskthe statutory limit prescribed in the Regulations, the current limits of which (% of net assets) profileare given below: Equity and equity related securities 65-100% MediumMaximum recurring expenses: of Smaller Companies* to HighDaily average net assets Maximum, as a % of Equity and equity related securities of 0-35% Medium daily average net assets companies other than Smaller Companies* to HighFirst R 100 crores 2.25% Debt and money market 0-35% Low toNext R 300 crores 2.00% instruments MediumNext R 300 crores 1.75%Balance assets 1.50% * Includes investments in equity and equity related securities issued by domestic companies; including derivatives traded on the Futures andMaximum investment management fee to be charged by the AMC: Options segment of Indian stock exchanges not exceeding 50% of the net assets of the Scheme, offshore securities, ADRs and GDRs not exceedingDaily average net assets Maximum, as a % of daily average net assets 50% of the net assets of the Scheme. Investment in securitised debt mayFirst R 100 crores 1.25% be made to the extent of 20% of net assets of the Scheme.Balance assets 1.00% RISK MITIGATION FACTORSAny excess over these limits will be borne by the AMC. Risk and Description Risk Mitigants / Management StrategyRecurring expenses (Actual expenses for the financial year ending): specific to Equities#Particulars March Quality Risk The stock selection process is an important part 2011 Risk of investing in of the idea generation stage, as it provides the unsustainable / weak greater part of added value to the investments.Super Institutional Plan: companies Underpinning the stock selection process is theTotal Recurring expenses as a percentage of Daily / Weekly 0.50% rigorous research conducted by dedicatedaverage net assets specialists. The approach to stock selection isRetail Plan: largely specific, which means that these investmentTotal Recurring expenses as a percentage of Daily / Weekly 0.75 professionals have the responsibility to design andaverage net assets refine their stock selection process to cope with the dynamic local factors and market conditions.LOAD STRUCTURE OF THE SCHEME Quality analysis based investment approach:1. Entry Load: NIL (i) Management2. Exit Load: NIL (ii) Capital structure (iii) Sustainability of competitive advantageTo know the latest position on Loads structure prior to investing /redemption, investors are advised to contact any of the ISCs or the AMC at (iv) Return on equityits toll-free number "1-800-22-5763". (v) Industry attractivenessThe investor is requested to check the prevailing load structure of the Scheme In general, there are three primary sources ofbefore investing. investment return which the investment professionals normally focus on and they form theAll Loads are intended to enable the AMC to recover expenses incurred for basic premise of the stock selection process:promotion or distribution and sales of the Units of the Scheme. All Loads willbe retained in the Scheme in a separate account and will be utilised to meet (i) Growth - companies that exhibit sustainablethe distribution and marketing expenses. Any surplus amounts in this account earnings growth in excess of the marketmay be credited to the Scheme whenever considered appropriate by the AMC. through an economic cycle; (ii) Valuations - quantitative analysis in evaluatingDAILY NET ASSET VALUE (NAV) PUBLICATION the value and profitability of the company;The AMC will calculate and disclose the NAV of the Scheme on every Business (iii) Dividend yield - an additional source of return,Day. The NAV of the Scheme will be made available at all ISCs of the AMC. The over and above capital appreciation.AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) Price Risk During company visits, qualitative assessments ofand of the Association of Mutual Funds in India (www.amfiindia.com) by Risk of overpaying for the relative growth prospects of the companies9.00 p.m. on every Business Day. In case of any delay, the reasons for such a company concerned are made and strategies are decided todelay would be explained to AMFI. If the NAVs are not available before create shareholder value. Industries in whichcommencement of business hours on the following Business Day due to any companies operate are analysed along with thereason, the Fund shall issue a press release providing reasons and explaining competitive landscape as well as the managementwhen the Fund would be able to publish the NAV. strategy to enhance competitive advantage and returns. As part of the process, meetings areJPMORGAN INDIA SMALLER COMPANIES FUND organised not only with companies that fall within the core stock coverage, but also with theirNAME OF THE SCHEME competitors, distributors, suppliers and other stakeholders in order to obtain a complete pictureJPMorgan India Smaller Companies Fund of the industry/company and other investmentTYPE OF SCHEME opportunities. In the process, a clearAn open-ended equity growth scheme. understanding of the business is arrived at, enabling the identification of future long-termINVESTMENT OBJECTIVE winners at an early stage.The investment objective is to seek to generate long-term capital appreciation Concentration Risk Portfolio construction is the responsibility of thefrom a portfolio that is substantially constituted of equity and equity-related investment manager assigned to each fund.securities focused on smaller companies. Generally, the universe will be thecompanies constituting the bottom fourth by way of market capitalization of There are three objectives to the portfoliostocks listed on the NSE / BSE. The fund manager may from time to time construction process:include other equity and equity-related securities outside the universe to (i) to capture and preserve value from all the bestachieve optimal portfolio construction. However, there can be no assurance ideas by country specialists;that the investment objective of the scheme will be realised. (ii) to ensure no single decision will derail performance; andASSET ALLOCATION PATTERN (iii) to deliver in line with the funds risk/returnUnder normal circumstances, it is anticipated that the asset allocation shall profiles.be as follows: 8
  • 11. Risk and Description Risk Mitigants / Management Strategy to time (subject to the availability of distributable surplus as calculated inspecific to Equities# accordance with the Regulations). If the investor does not clearly specify the choice of option at the time of investing, it will be treated as a growth option. Portfolios are constructed using a disciplined If the investor does not clearly specify the choice of dividend payout or and tailored approach, and there is a high reinvestment options within the dividend option, he will be treated as having degree of commonality across accounts with selected the reinvestment option. similar objectives and profiles. During the process, the investment manager assigns a APPLICABLE NAV target percentage weight based upon variations, positive or negative, from the The cut-off time for the Scheme is 3 pm, and the Applicable NAV will be as predetermined fund benchmark weight. under: Investment managers may also incorporate For Purchase / Redemption their own views on individual stocks and (a) In respect of valid Purchase / Redemption applications along with cheques / exercise discretion to align with the above demand drafts / other payment instruments accepted at a Designated guidelines with the objective that is likely to Collection Centre up to 3.00 pm on a Business Day, the NAV of such day be achieved by inclusion of the stock in a fund will be applicable. portfolio. The investment manager will also reconcile any other anomalies between the (b) In respect of valid Purchase / Redemption applications along with cheques / stock rankings and portfolio requirements with demand drafts / other payment instruments accepted at a Designated the overall objective of adding value to the fund Collection Centre after 3.00 pm on a Business Day, the NAV of the next portfolio. Business Day will be applicable. The Risk Management / Middle Office oversees The above will be applicable only for cheques / demand drafts / payment investment managers to ensure compliance with instruments payable locally in the city in which a Designated Collection Centre the funds internal requirements. The buy / sell is located. No outstation cheques will be accepted. decisions generated at the portfolio construction For Switches stage of the process are automatically checked Valid applications for switch-out shall be treated as applications for against fund guidelines, and electronically Redemption and valid applications for switch-in shall be treated as forwarded to the trading team for execution. applications for Purchase, and the provisions of the cut-off time and theLiquidity Risk Dealing in volatile, often illiquid markets imposes Applicable NAV mentioned in the Offer Document as applicable to PurchaseHigh impact costs a cost on an active investment manager. The and Redemption shall be applied respectively to the switch-in and switch- responsibility for minimizing the performance drag out applications. lies with the Dealing team whose focus is to minimize market impact and transaction costs. The MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS competitive advantages in achieving this objective Minimum initial application amount R 5,000 per application and are: multiples of R 1/- thereafter (i) An experienced team. Minimum additional application amount R 1,000 per application and in (ii) State of the art systems and on-going multiples of R 1/- thereafter investment in trading technology. (iii) Analysis of historical transactions and Minimum amount / no. of units for R 1,000 or 100 Units associated impact costs used to determine redemption trading strategies. (iv) Low commission rates paid to brokers, reducing DESPATCH OF REPURCHASE (REDEMPTION) REQUEST direct costs per trade. Redemption proceeds will be paid by cheques, marked “A/c Payee only” and (v) Significant overall commission payout ensuring drawn in the name of the sole holder / first-named holder (as determined by premium service from investment banks and the records of the Registrar). brokerage firms. The Mutual Fund will endeavour to despatch the Redemption proceeds within The success of the dealing team can be measured 3 Business Days from the acceptance of the Redemption request, but not by comparing each execution to the Volume beyond 10 Business Days from the date of Redemption. If the payment is not Weighted Average Price (VWAP) and on-line made within the period stipulated in the Regulations, the Unit Holder shall be through the independent Best Execution paid interest @ 15% p.a. for the delayed period and the interest shall be borne Comparison Service (BECS) which compares by the AMC. transaction costs with those of the competition. The bank name and bank account number, as specified in the Registrar’s Effectiveness of the dealing team is measured on records, will be mentioned in the cheque. The cheque will be payable at par at an ongoing basis. all the cities having ISCs. If the Unit Holder resides in any other city, he will be paid by a demand draft payable at the city of his residence and the demandVolatility As explained above, the volatility arising out of draft charges shall be borne by the AMC. The proceeds may be paid by way ofPrice volatility due to portfolio specific factors are being mitigated using direct credit / NEFT / RTGS / any other manner through which the investor’scompany or portfolio a combination of various methods as explained bank account specified in the Registrar’s records may be credited with thespecific factors above. Redemption proceeds.Event Risk As explained above, the volatility arising out of Note: The Trustee, at its discretion at a later date, may choose to alter or addPrice volatility due to portfolio specific factors are being mitigated using other modes of payment.company or portfolio a combination of various methods as explainedspecific events above. The Redemption proceeds will be sent by courier or (if the addressee city is not serviced by the courier) by registered post. The despatch for the purpose# Includes equity and equity related securities. of delivery through the courier / postal department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non-delivery or any consequences thereof, if theRISK PROFILE OF THE SCHEME despatch has been made correctly as stated in this paragraph.Mutual Fund Units involve investment risks including the possible loss ofprincipal. Please read the SID carefully for details on risk factors before BENCHMARK INDEX FOR PERFORMANCE COMPARISONinvestment. Standard and Scheme Specific Risk Factors are summarized at CNX Midcap Index.## (refer to end of section)the end of this document. DIVIDEND POLICYPLANS AND OPTIONS The Trustee may decide to distribute by way of dividend, the surplus by way ofThe Scheme offers two options - growth option and dividend option. The realised profit, dividends and interest, net of losses, expenses and taxes, ifdividend option offers dividend payout and dividend reinvestment. any, to Unit Holders, if such surplus is available and adequate for distributionUnder the growth option, no dividend will be declared. Under the dividend in the opinion of the Trustee. The Trustees decision with regard to availabilityoption, a dividend may be declared by the Trustee, at its discretion, from time and adequacy, rate, timing and frequency of distribution shall be final. The 9
  • 12. dividend will be due to only those Unit Holders whose names appear in the These estimates have been made in good faith as per the information availableregister of Unit Holders in the dividend option of the Scheme on the record to the AMC based on past experience and are subject to change inter-se. Typesdate which will be announced in advance. The Unit Holders have the option of of expenses charged shall be as per the SEBI (MF) Regulations.reinvesting the dividend. The AMC will charge the Scheme such actual expenses incurred, subject to the statutory limit prescribed in the Regulations, the current limits of whichNAME OF THE FUND MANAGERS are given below:For Equity : Mr. Harshad Patwardhan & Mr. Amit Gadgil Maximum Recurring Expenses:For Debt : Mr. Nandkumar Surti & Mr. Namdev Chougule. Daily average net assets Maximum, as a % ofPERFORMANCE OF THE SCHEME daily average net assetsScheme Returns as on 31st March, 2011 First R 100 crore 2.50% Scheme CNX Midcap Next R 300 crore 2.25% returns (%) Index (%) Next R 300 crore 2.00% Since inception -8.00% -3.02% Balance assets 1.75% 1 year 11.28% 4.35% Maximum Investment Management Fee to be charged by the AMC: 3 years 1.59% 8.81% Daily average net assets Maximum, as a % of Absolute returns for each financial year for the last 4 years daily average net assets Scheme returns CNX Midcap Index First R 100 crores 1.25% 150.00% – 123.15% 126.12% Balance assets 1.00% 120.00% – 90.00% – Any excess over these limits will be borne by the AMC. 60.00% – Recurring expenses (Actual expenses for the financial year ending): 30.00% – 11.28% 4.35% -57.77% -45.40% Particulars March 0.00% – 2011 -30.00% – *-27.37% *-29.79% Total Recurring expenses as a percentage of Daily / Weekly 2.36% -60.00% – 2007-08 2008-09 2009-10 2010-11 average net assets Financial Years LOAD STRUCTURE OF THE SCHEMENote: CAGR are given for more than one year. Absolute returns of the growth 1. Entry Load: NILoption are computed for a period of less than one year. "Since inception"returns are calculated on R 10 invested at inception. 2. Exit Load:Past performance may or may not be sustained in future. All calculations For Redemption Exit Load (%assume that all payouts during the period have been re-invested in the units of Applicable NAV)of the scheme. Within 12 months from the date of allotment in 1.00%*Allotment date: 26 December, 2007 respect of Purchase made other than through SIPEXPENSES OF THE SCHEME Within 12 months from the date of allotment in 1.00%As per the Regulations, the following fees and expenses can be charged to the respect of the first Purchase made through SIPScheme: No load for units allotted under dividend reinvestment option.1. Initial issue expenses No Exit Loads will be chargeable in case of switches made between differentNo initial issue expenses were charged to the scheme. options of the Scheme.2. Annual Scheme Recurring expenses Subject to the Regulations, the Trustee retains the right to change / imposeThese are the fees and expenses for operating the Scheme. These expenses an Exit Load.include investment management and advisory fee charged by the AMC, the To know the latest position on Loads structure prior to investing /Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in redemption, investors are advised to contact any of the ISCs or the AMC atthe table below: its toll-free number "1-800-22-5763".The AMC has estimated that upto 2.50% of the daily average net assets of the The investor is requested to check the prevailing load structure of the SchemeScheme will be charged to the Scheme as expenses. For the actual current before investing.expenses being charged, the investor should refer to the website of the MutualFund (www.jpmorganmf.com). DAILY NET ASSET VALUE (NAV) PUBLICATION Daily average net assets % of net assets The AMC will calculate and disclose the NAV of the Scheme on every Business Day. The NAV of the Scheme will be made available at all ISCs of the AMC. The Investment management & advisory fees 1.250 AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) Custodian fees 0.100 and of the Association of Mutual Funds in India (www.amfiindia.com) by 9.00 Registrar & transfer agent fees including 0.150 pm on every Business Day. In case of any delay, the reasons for such delay cost related to providing account statement, would be explained to AMFI. If the NAVs are not available before dividend/redemption cheques/warrants etc. commencement of business hours on the following Business Day due to any reason, the Fund shall issue a press release providing reasons and explaining Marketing & selling expenses including when the Fund would be able to publish the NAV. agent’s commission and statutory advertisement 0.505 Brokerage and transaction cost pertaining to ## IISL Disclaimer: the distribution of units "The JPMorgan India Smaller Companies Fund is not sponsored, endorsed, Audit fees/fees and expenses of the Trustee 0.065 sold or promoted by India Index Services & Products Limited (IISL). IISL makes no representation or warranty, express or implied to the owners of the Product Costs related to investor communications 0.040 or any member of the public regarding the advisability of investing in securities Costs of fund transfer from location to location 0.010 generally or in the Product particularly or the ability of the CNX Midcap Index to track general stock market performance in India. The relationship of IISL to Other Expenses* 0.380 JPMorgan Asset Management India Pvt. Ltd. is in respect of using of the Total Annual Scheme Recurring Expenses 2.500 trademark and trade name of CNX Midcap Index for benchmarking purposes,*Other expenses: Any other expenses which are directly attributable to the which is determined, composed and calculated by IISL without regard toScheme may be charged with approval of the Trustee within the overall limits JPMorgan Asset Management India Pvt. Ltd. IISL has no obligation to take theas specified in the Regulation 52(6) except those expenses which are specifically needs of JPMorgan Asset Management India Pvt. Ltd. or the owners of theprohibited. Product into consideration in determining, composing or calculating the CNX 10
  • 13. Midcap Index. IISL is not responsible for nor has participated in the with the overall objective of adding value todetermination of the timing of, prices at, or quantities of the Product to be the fund portfolio.issued or in determination or calculation of the equation by which the product The Risk Management / Middle Office overseesis to be converted into cash. IISL has no obligation or liability in connection investment managers to ensure compliance withwith the administration, marketing or trading of the Product. the funds internal requirements."IISL does not guarantee the accuracy and/or the completeness of the CNXMidcap Index or any data included therein and they shall have no liability for Liquidity Risk Dealing in volatile, often illiquid markets imposesany errors, omissions, or interruptions therein. IISL makes no warranty, express High impact costs a cost on an active investment manager. Theor implied, as to the results to be obtained by the Principal JPMorgan Asset responsibility for minimizing the performance dragManagement India Pvt. Ltd., owners of the Product, or any other persons or lies with the Dealing team whose focus is toentities from the use of the CNX Midcap Index or any data included therein. minimize market impact and transaction costs. TheIISL makes no express or implied warranties and expressly disclaims all competitive advantages in achieving this objectivewarranties of merchantability or fitness for a particular purpose or use with are:respect to the CNX Midcap Index or any data included therein. Without limiting (i) An experienced team.any of the foregoing, in no event shall IISL have any liability for any special, (ii) State of the art systems and on-goingpunitive, indirect or consequential damages (including lost profits), even if investment in trading technology.notified of the possibility of such damages." (iii) Analysis of historical transactions and associated impact costs used to determine trading strategies.JPMORGAN INDIA ACTIVE BOND FUND (iv) Low commission rates paid to brokers, reducingNAME OF THE SCHEME direct costs per trade.JPMorgan India Active Bond Fund (v) Significant overall commission payout ensuring premium service from investment banks andTYPE OF SCHEME brokerage firms.An open-ended income scheme. Effectiveness of the dealing team is measured on an ongoing basis.INVESTMENT OBJECTIVETo generate optimal returns while maintaining liquidity through active Volatility As explained above, the volatility arising out ofmanagement of the portfolio by investing in debt and money market Price volatility due to portfolio specific factors are being mitigated usinginstruments. However, there can be no assurance that the investment objective company or portfolio a combination of various methods as explainedof the Scheme will be realized. specific factors above.ASSET ALLOCATION PATTERN RISK PROFILE OF THE SCHEMEUnder normal circumstances it is anticipated that the asset allocation shall be Mutual Fund Units involve investment risks including the possible loss ofas follows: principal. Please read the SID carefully for details on risk factors beforeFor both Plans (Retail Plan & Institutional Plan) investment. Standard and Scheme Specific Risk Factors are summarized at Investment Normal allocation Risk the end of this document. (% of net assets) profileMoney Market & Debt instruments with 10 - 100% Low PLANS AND OPTIONSmaturity / average maturity / interest rate The Scheme has two plans: Retail Plan and Institutional Plan.reset not greater than one year Both plans under the scheme offers two options: a growth option and a dividend option. The dividend option has a reinvestment option and a payoutDebt* instruments including government 0 - 90% Low to option.securities and corporate Debt Medium Under the growth option, no dividend will be declared.* Debt instruments include securitised debt. Securitised debt (excluding foreign securitised debt) can be up to 50% of the net assets of the scheme. Under the dividend option, a dividend may be declared by the Trustee, at its Investment in derivatives also - up to 50% of the net asset of the Scheme discretion, from time to time (subject to the availability of distributable surplus as calculated in accordance with the Regulations).RISK MITIGATION FACTORS If the investor does not clearly specify the choice of option at the time ofConcentration Risk Portfolio construction is the responsibility of the investing, it will be treated as a growth option. investment manager assigned to each fund. APPLICABLE NAV There are three objectives to the portfolio construction process: The Cut-off time for the Scheme is 3.00 p.m. and the Applicable NAV will be as under: (i) to capture and preserve value from all the best ideas by country specialists; For Purchase a. where the application is received upto 3.00 pm with a local cheque or (ii) to ensure no single decision will derail demand draft payable at par at the place where it is received, with amount performance; and less than R 1 crore – closing NAV of the day of receipt of application; (iii) to deliver in line with the funds risk/return b. where the application is received after 3.00 pm with a local cheque or profiles. demand draft payable at par at the place where it is received, with amount Portfolios are constructed using a disciplined less than R 1 crore – closing NAV of the next Business Day; and tailored approach, and there is a high c. where the application is received with a local cheque or demand draft degree of commonality across accounts with payable at par at the place where it is received, with amount equal to or similar objectives and profiles. During the more than R 1 crore irrespective of the time of receipt of application, the process, the investment manager assigns a closing NAV of the day on which the funds are available for utilisation target percentage weight based upon shall be applicable. variations, positive or negative, from the predetermined fund benchmark weight. Applicability of NAV for the Scheme with an amount equal to or more than Investment managers may also incorporate R 1 Crore: their own views on individual security and a) For allotment of units in respect of purchase in the Scheme, the following exercise discretion to align with the above needs to be complied with: guidelines with the objective that is likely to i. Application is received before the applicable cut-off time. be achieved by inclusion of the security in a fund portfolio. The investment manager will ii. Funds for the entire amount of subscription/purchase as per the also reconcile any other anomalies between the application are credited to the bank account of the respective Scheme security rankings and portfolio requirements before the cutoff time. 11
  • 14. iii. The funds are available for utilization before the cut-off time without available and adequate for distribution in the opinion of the Trustee. The availing any credit facility whether intra-day or otherwise, by the Trustee’s decision with regard to availability and adequacy, rate, timing and respective Scheme. frequency of distribution shall be final. The dividend will be due to only thoseb) For allotment of units in respect of switch-in to the Scheme from other Unit Holders whose names appear in the register of Unit Holders in the dividend schemes, the following needs to be complied with: option of the Scheme on the record date which will be announced in advance in accordance with MF Regulations. The Unit Holders have the option of i. Application for switch-in is received before the applicable cut-off time. receiving the dividend or reinvesting the same. The dividend will be reinvested ii. Funds for the entire amount of subscription/purchase as per the switch- at the Applicable NAV of the immediately following Business Day. in request are credited to the bank account of the respective switch-in The AMC shall dispatch to the Unit Holders, the dividend warrants within 30 Scheme before the cut-off time. (thirty) days of the date of declaration of dividend. The dividend distribution iii. The funds are available for utilization before the cut-off time without procedure shall be in accordance with the Regulations. availing any credit facility whether intra-day or otherwise, by the respective switch-in Scheme or Plans or options thereunder. NAME OF THE FUND MANAGERSFor Redemption Mr. Nandkumar Surti and Mr. Namdev Chougulea. where the application is received up to 3.00 pm – closing NAV of the day PERFORMANCE OF THE SCHEME of receipt of application; and Scheme Returns as on 31st March, 2011b. where an application is received after 3.00 pm – closing NAV of the next Business Day. Retail Institutional CRISIL Composite (%) (%) Bond Fund Index (%)The above will be applicable only for cheques / demand drafts / paymentinstruments payable locally in the city in which a Designated Collection Centre Since inception 4.17% – 6.89%is located. No outstation cheques will be accepted. 1 year 7.20% – 5.06%For SwitchesValid applications for switch-out shall be treated as applications for Absolute returns for each financial year for the last 3 yearsRedemption and valid applications for switch-in shall be treated as Retail Institutional CRISIL Composite Bond Fund Indexapplications for Purchase, and the provisions of the Cut-off time and the 10.00% – *8.54%Applicable NAV mentioned in the Offer Document as applicable to Purchase 8.00% – 7.20%and Redemption shall be applied respectively to the switch-in and switch- 6.00% – 5.41% 5.06%out applications. 4.00% – *3.39% *2.80% 2.10% 2.00% – 1.59%MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 0.00% – Minimum initial Retail Plan: R 5,000 per application 2008-09 2009-10 2010-11 application amount and in multiples of R 1 thereafter. Financial Year Institutional Plan: R 1,00,00,000 per Note: CAGR are given for more than one year. Absolute returns of the growth application and in multiples of R 1 thereafter. option are computed for a period of less than one year. “Since inception” returns are calculated on R 10 invested at inception. Past performance may or Minimum additional R 1,000 per application and in multiples may not be sustained in future. All calculations assume that all payouts during application amount of R 1 thereafter under both the Plans. the period have been re-invested in the units of the scheme. Minimum amount / no. R 5,000 or 500 Units *Allotment date : 27 June, 2008. of units for redemption Note: As on 31 March, 2011, there are no investors in the Institutional Plan.DESPATCH OF REPURCHASE (REDEMPTION) REQUEST EXPENSES OF THE SCHEMERedemption proceeds will be paid by cheques, marked “A/c Payee only” and As per the Regulations, the following fees and expenses can be charged to thedrawn in the name of the sole holder / first-named holder (as determined by Scheme:the records of the Registrar). 1. Initial issue expensesThe Mutual Fund will endeavour to despatch the Redemption proceeds within No initial issue expenses were charged to the Scheme.3 Business Days from the acceptance of the Redemption request, but notbeyond 10 Business Days from the date of Redemption. If the payment is not 2. Annual Scheme Recurring expensesmade within the period stipulated in the Regulations, the Unit Holder shall be These are the fees and expenses for operating the Scheme. These expensespaid interest @ 15% p.a. for the delayed period and the interest shall be borne include investment management and advisory fee charged by the AMC, theby the AMC. Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inThe bank name and bank account number, as specified in the Registrar’s the table below:records, will be mentioned in the cheque. The cheque will be payable at par at The AMC has estimated that upto 2.25% of the daily average net assets of theall the cities having ISCs. If the Unit Holder resides in any other city, he will be Scheme will be charged to the Scheme as expenses. For the actual currentpaid by a demand draft payable at the city of his residence and the demand expenses being charged, the investor should refer to the website of the Mutualdraft charges shall be borne by the AMC. The proceeds may be paid by way of Fund (www.jpmorganmf.com).direct credit / NEFT / RTGS / any other manner through which the investor’sbank account specified in the Registrar’s records may be credited with the Daily average net assets % of net assetsRedemption proceeds. Investment management & advisory fees 1.25Note: The Trustee, at its discretion at a later date, may choose to alter or add Custodian fees 0.10other modes of payment. Registrar & transfer agent fees including 0.10The Redemption proceeds will be sent by courier or (if the addressee city is cost related to providing account statement,not serviced by the courier) by registered post. The despatch for the purpose dividend/redemption cheques/warrants etc.of delivery through the courier / postal department, as the case may be, shallbe treated as delivery to the investor. The AMC / Registrar are not responsible Marketing & selling expenses includingfor any delayed delivery or non-delivery or any consequences thereof, if the agent’s commission and statutory advertisement 0.50despatch has been made correctly as stated in this paragraph. Brokerage and transaction cost pertaining to the distribution of unitsBENCHMARK INDEX FOR PERFORMANCE COMPARISON Audit fees/fees and expenses of the Trustee 0.02CRISIL Composite Bond Fund Index Costs related to investor communications 0.04DIVIDEND POLICY Costs of fund transfer 0.01The Trustee may decide to distribute by way of dividend, the surplus by way of Other Expenses* 0.23realised profit, dividends and interest, net of losses, expenses and taxes, ifany, to Unit Holders in the dividend option of the Scheme if such surplus is Total Annual Scheme Recurring Expenses 2.25 12
  • 15. *Other expenses: Any other expenses which are directly attributable to the JPMORGAN INDIA TAX ADVANTAGE FUNDScheme may be charged with approval of the Trustee within the overall limitsas specified in the Regulation 52(6) except those expenses which are specifically NAME OF THE SCHEMEprohibited. JPMorgan India Tax Advantage FundThese estimates have been made in good faith as per the information availableto the AMC based on past experience and are subject to change inter-se. Types TYPE OF SCHEMEof expenses charged shall be as per the SEBI (MF) Regulations. An open-ended equity linked savings scheme.The AMC will charge the Scheme such actual expenses incurred, subject to INVESTMENT OBJECTIVEthe statutory limit prescribed in the Regulations, the current limits of which The investment objective of the Scheme is to generate income and long-termare given below: capital appreciation from a diversified portfolio of predominantly equity andMaximum Recurring Expenses: equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market Daily average net assets Maximum, as a % of movements may be at variance with anticipated trends. daily average net assets First R 100 Crores 2.25% ASSET ALLOCATION PATTERN Next R 300 Crores 2.00% Under normal circumstances, it is anticipated that the asset allocation shall Next R 300 Crores 1.75% be as follows: Balance assets 1.50% Instruments Normal allocation Indicative allocation Risk (% of net assets) (% of net assets) profileMaximum investment management fee to be charged by the AMC: Equity and equity 95% 80% - 100% Medium Daily average net assets Maximum, as a % of -related Securities* to High daily average net assets Debt and money 5% 0% - 20% Low to First R 100 Crores 1.25% market instruments Medium Balance assets 1.00% In accordance with the ELSS, investments by the Scheme in equity and equityAny excess over these limits will be borne by the AMC. related Securities will not fall below 80% of the net assets of the Scheme. As per the ELSS, the Scheme after 3 (three) years from the date of allotment ofRecurring expenses (Actual expenses for the financial year ending): Units can hold investments in short term money market instruments or other Particulars March liquid instruments or both only up to 20% of its net assets. 2011 Under normal market conditions, the corpus of the assets of the Scheme shall Retail Plan: be predominantly invested in equity Securities as per the asset allocation pattern above. However, due to market conditions, the AMC may invest beyond the Total Recurring expenses as a percentage of Daily / Weekly 2.00% range set out above. Such deviations shall normally be for a short term purpose average net assets only, for defensive considerations and with the intention of protecting the Institutional Plan: interests of the Unit Holders. In the event of deviations, rebalancing will normally Total Recurring expenses as a percentage of Daily / Weekly 1.50% be carried out within 10 (ten) Business Days. average net assets * Equity related Securities shall mean equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues ofLOAD STRUCTURE OF THE SCHEME debentures and bonds including those issued on rights basis subject to1. Entry Load : Nil the condition that, as far as possible, the non-convertible portion of the2. Exit Load : debentures so acquired or subscribed, shall be disinvested within a period of 12 (twelve) months. In accordance with the ELSS, investments by theRetail Plan: Scheme in equity and equity related Securities will not fall below 80% ofFor any amount, if redeemed within one month of allotment of Units: 0.25% the net assets of the Scheme. As per the ELSS, the Scheme after 3 (three)Institutional Plan: years from the date of allotment of Units can hold investments in short term money market instruments or other liquid instruments or both onlyFor any amount, if redeemed within one month of allotment of Units: 0.25% up to 20% of its net assets.For SIP (only for Retail Plan) The Scheme does not intend to make any investments in derivatives, ADR/GDRs/Exit Load : foreign Securities and mutual fund units. However, the Scheme may make investments in derivatives, ADR/GDRs/foreign Securities as and when permittedFor any amount, if redeemed within one month of allotment of Units: 0.25%. by the ELSS and till a clarification is received from SEBI. The scheme shall notTo know the latest position on Loads structure prior to investing / invest in foreign securitized debt.redemption, investors are advised to contact any of the ISCs or the AMC atits toll-free number "1-800-22-5763". RISK MITIGATION FACTORS Risk and Description Risk Mitigants / Management StrategyThe investor is requested to check the prevailing load structure of the Scheme specific to Equities#before investing. Quality Risk The stock selection process is an important partAll Loads are intended to enable the AMC to recover expenses incurred for Risk of investing in of the idea generation stage, as it provides thepromotion or distribution and sales of the Units of the Scheme. All Loads will unsustainable / weak greater part of added value to the investments.be retained in the Scheme in a separate account and will be utilised to meet companies Underpinning the stock selection process is thethe distribution and marketing expenses. Any surplus amounts in this account rigorous research conducted by dedicatedmay be credited to the Scheme whenever considered appropriate by the AMC. specialists. The approach to stock selection is largely specific, which means that these investmentDAILY NET ASSET VALUE (NAV) PUBLICATION professionals have the responsibility to design andThe AMC will calculate and disclose the NAV of the Scheme on every Business refine their stock selection process to cope withDay. The NAV of the Scheme will be made available at all ISCs of the AMC. The the dynamic local factors and market conditions.AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) Quality analysis based investment approach:and of the Association of Mutual Funds in India (www.amfiindia.com) by (i) Management9.00 p.m. on every Business Day. In case of any delay, the reasons for such (ii) Capital structuredelay would be explained to AMFI. If the NAVs are not available before (iii) Sustainability of competitive advantagecommencement of business hours on the following Business Day due to anyreason, the Fund shall issue a press release providing reasons and explaining (iv) Return on equitywhen the Fund would be able to publish the NAV. (v) Industry attractiveness 13
  • 16. Risk and Description Risk Mitigants / Management Strategy Risk and Description Risk Mitigants / Management Strategyspecific to Equities# specific to Equities# In general, there are three primary sources of (iii) Analysis of historical transactions and investment return which the investment associated impact costs used to determine professionals normally focus on and they form the trading strategies. basic premise of the stock selection process: (iv) Low commission rates paid to brokers, reducing (i) Growth - companies that exhibit sustainable direct costs per trade. earnings growth in excess of the market through an economic cycle; (v) Significant overall commission payout ensuring premium service from investment banks and (ii) Valuations - quantitative analysis in evaluating brokerage firms. the value and profitability of the company; The success of the dealing team can be measured (iii) Dividend yield - an additional source of return, by comparing each execution to the Volume over and above capital appreciation. Weighted Average Price (VWAP) and on-linePrice Risk During company visits, qualitative assessments of through the independent Best ExecutionRisk of overpaying for the relative growth prospects of the companies Comparison Service (BECS) which comparesa company concerned are made and strategies are decided to transaction costs with those of the competition. create shareholder value. Industries in which Effectiveness of the dealing team is measured on companies operate are analysed along with the an ongoing basis. competitive landscape as well as the management Volatility As explained above, the volatility arising out of strategy to enhance competitive advantage and Price volatility due to portfolio specific factors are being mitigated using returns. As part of the process, meetings are company or portfolio a combination of various methods as explained organised not only with companies that fall within specific factors above. the core stock coverage, but also with their competitors, distributors, suppliers and other Event Risk As explained above, the volatility arising out of stakeholders in order to obtain a complete picture Price volatility due to portfolio specific factors are being mitigated using of the industry/company and other investment company or portfolio a combination of various methods as explained opportunities. In the process, a clear specific events above. understanding of the business is arrived at, enabling the identification of future long-term # Includes equity and equity related securities. winners at an early stage. RISK PROFILE OF THE SCHEMEConcentration Risk Portfolio construction is the responsibility of the Mutual Fund Units involve investment risks including the possible loss of investment manager assigned to each fund. principal. Please read the SID carefully for details on risk factors before There are three objectives to the portfolio investment. Standard and Scheme Specific Risk Factors are summarized at construction process: the end of this document. (i) to capture and preserve value from all the best ideas by country specialists; PLANS AND OPTIONS The Scheme offers two options: growth option and dividend option. The (ii) to ensure no single decision will derail dividend option offers dividend payout and dividend reinvestment. If the performance; and investor does not clearly specify the choice of option at the time of investing, (iii) to deliver in line with the funds risk/return it will be treated as a growth option. If the investor does not clearly specify profiles. the choice of dividend payout or reinvestment options within the dividend Portfolios are constructed using a disciplined option, he will be treated as having elected the reinvestment option. and tailored approach, and there is a high degree of commonality across accounts with APPLICABLE NAV similar objectives and profiles. During the The Cut-off time for the Scheme is 3.00 p.m., and the Applicable NAV will be process, the investment manager assigns a as under: target percentage weight based upon variations, For Purchase / Redemption positive or negative, from the predetermined (a) In respect of valid Purchase / Redemption applications along with cheques / fund benchmark weight. Investment managers demand drafts / other payment instruments accepted at a Designated may also incorporate their own views on Collection Centre up to 3.00 p.m. on a Business Day, the NAV of such day individual stocks and exercise discretion to align will be applicable. with the above guidelines with the objective (b) In respect of valid Purchase / Redemption applications along with cheques / that is likely to be achieved by inclusion of the demand drafts / other payment instruments accepted at a Designated stock in a fund portfolio. The investment Collection Centre after 3.00 p.m. on a Business Day, the NAV of the next manager will also reconcile any other anomalies Business Day will be applicable. between the stock rankings and portfolio (c) Redemption of Units can be made only after a lock-in period of three requirements with the overall objective of years has expired from the date of allotment of Units proposed to be adding value to the fund portfolio. redeemed. The Risk Management / Middle Office oversees The above will be applicable only for cheques / demand drafts / payment investment managers to ensure compliance with instruments payable locally in the city in which a Designated Collection Centre the funds internal requirements. The buy / sell is located. decisions generated at the portfolio construction stage of the process are automatically checked No outstation cheques will be accepted. Redemptions will not be allowed for against fund guidelines, and electronically 3 years from the date of allotment except in the case of transmission of units. forwarded to the trading team for execution. For SwitchesLiquidity Risk Dealing in volatile, often illiquid markets imposes Valid applications for switch-out shall be treated as applications forHigh impact costs a cost on an active investment manager. The Redemption and valid applications for switch-in shall be treated as responsibility for minimizing the performance drag applications for Purchase, and the provisions of the Cut-off time and the lies with the Dealing team whose focus is to Applicable NAV as applicable to Purchase and Redemption shall be applied minimize market impact and transaction costs. The respectively to the switch-in and switch-out applications. competitive advantages in achieving this objective Switch-out of Units from the Scheme can be made only after a lock-in period are: of three years has expired from the date of allotment of Units proposed to be (i) An experienced team. switched out. SWP/STP will not be allowed for 3 years from the date of (ii) State of the art systems and on-going allotment. Switch-ins will be allowed into the scheme but investors should investment in trading technology. note that the amount switching in will be locked in for a period of 3 years. 14
  • 17. As per the ELSS, in the event of the death of the Assessee, the nominee or Absolute returns for each financial year for the last 3 yearslegal heir, as the case may be, shall be able to withdraw the investment in Scheme returns BSE 200Units only after the completion of one year from thedate of allotment of the 100.00% – 92.87%Units to the Assessee or any time thereafter. Accordingly, transmission ofUnits (allotted to Assessees) as mentioned above will be carried out only after 80.00% – 64.13%the completion of one year from the date of their allotment. 60.00% – 40.00% –MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 20.00% – *0.17% *7.42% 14.00% 8.15% Minimum initial R 500 per application and in multiples 0.00% – 2008-09 2009-10 2010-11 application amount of R 500 thereafter. Financial Years Minimum additional R 500 per application and in multiples Note: CAGR are given for more than one year. Absolute returns of the growth application amount of R 500 thereafter. option are computed for a period of less than one year. “Since inception” Minimum redemption R 500 or 50 units. returns are calculated on R 10 invested at inception. amount / no. of Units Past performance may or may not be sustained in future. All calculations assume that all payouts during the period have been re-invested in the unitsDESPATCH OF REPURCHASE (REDEMPTION) REQUEST of the scheme.Redemption proceeds will be paid by cheques, marked “A/c Payee only” and *Allotment date: 27 January, 2009drawn in the name of the sole holder / first-named holder (as determined bythe records of the Registrar). EXPENSES OF THE SCHEMEThe Mutual Fund will endeavour to despatch the Redemption proceeds within As per the Regulations, the following fees and expenses can be charged3 Business Days from the acceptance of the Redemption request, but not to the Scheme:beyond 10 Business Days from the date of Redemption. If the payment is not 1. Initial issue expensesmade within the period stipulated in the Regulations, the Unit Holder shall bepaid interest @ 15% p.a. for the delayed period and the interest shall be borne No initial issue expenses were charged to the scheme.by the AMC. 2. Annual Scheme Recurring expensesThe bank name and bank account number, as specified in the Registrar’s The Ongoing fees and expenses of operating the Scheme on an annual basis,records, will be mentioned in the cheque. The cheque will be payable at par at and which shall be charged to the Scheme, are estimated to be (each as aall the cities having ISCs. If the Unit Holder resides in any other city, he will be percentage per annum of the daily average net assets):paid by a demand draft payable at the city of his residence and the demanddraft charges shall be borne by the AMC. The proceeds may be paid by way of Particulars % of Net Assetsdirect credit / NEFT / RTGS / any other manner through which the investor’s Investment management & advisory Fee 1.25bank account specified in the Registrar’s records may be credited with theRedemption proceeds. Custodial fees 0.10Note: The Trustee, at its discretion at a later date, may choose to alter or add Registrar & Transfer Agent fees including 0.15other modes of payment. cost related to providing accounts statement,The Redemption proceeds will be sent by courier or (if the addressee city is dividend / redemption cheques/warrants etc.not serviced by the courier) by registered post. The despatch for the purpose Marketing and selling expenses including 0.60of delivery through the courier / postal department, as the case may be, shall agents commission and statutory advertisementbe treated as delivery to the investor. The AMC / Registrar are not responsiblefor any delayed delivery or non-delivery or any consequences thereof, if the Brokerage and transaction cost pertaining to 0.02despatch has been made correctly as stated in this paragraph. the distribution of units Audit fees / fees and expenses of trusteesBENCHMARK INDEX FOR PERFORMANCE COMPARISON Costs related to investor communications 0.04BSE-200 Index Costs of fund transfer from location to location 0.01DIVIDEND POLICY Other Expenses* 0.33The Trustee may decide to distribute by way of dividend, the surplus by way of Total Recurring Expenses 2.50realised profit, dividends and interest, net of losses, expenses and taxes, ifany, to Unit Holders in the dividend option of the Scheme if such surplus is * Other expenses: Any other expenses which are directly attributable to theavailable and adequate for distribution in the opinion of the Trustee. The Scheme, may be charged with approval of the Trustee within the overallTrustee’s decision with regard to availability and adequacy, rate, timing and limits as specified in the Regulation 52 (6) except those expenses whichfrequency of distribution shall be final. The dividend will be due to only those are specifically prohibited.Unit Holders whose names appear in the register of Unit Holders in the dividend The AMC will charge the Scheme such actual expenses incurred, subject tooption of the Scheme on the record date which will be announced in advance the statutory limit prescribed in the Regulations, the current limits of whichin accordance with MF Regulations. The Unit Holders have the option of are given below:receiving the dividend or reinvesting the same. The dividend will be reinvestedat the Applicable NAV of the immediately following Business Day. Maximum Recurring expenses:The AMC shall dispatch to the Unit Holders, the dividend warrants within 30 Daily average net assets Maximum, as a % of(thirty) days of the date of declaration of dividend. The dividend distribution daily average net assetsprocedure shall be in accordance with the Regulations. First R 100 crores 2.50%NAME OF THE FUND MANAGERS Next R 300 crores 2.25%For Equity : Mr. Harshad Patwardhan & Mr. Amit Gadgil Next R 300 crores 2.00%For Debt : Mr. Nandkumar Surti & Mr. Namdev Chougule Balance assets 1.75%PERFORMANCE OF THE SCHEME Maximum investment management fee to be charged by the AMC:Scheme Returns as on 31st March, 2011 Daily average net assets Maximum, as a % of daily average net assets Scheme returns (%) BSE 200 (%) First R 100 crores 1.25% Since inception 33.48% 44.90% Balance assets 1.00% 1 year 14.00% 8.15% Any excess over these limits will be borne by the AMC. 15
  • 18. Recurring expenses (Actual expenses for the financial year ending): RISK MITIGATION FACTORS Risk and Description Risk Mitigants / Management StrategyParticulars March 2011 specific to Equities Quality Risk The stock selection process is an important partTotal Recurring expenses as a percentage of Daily / Weekly 2.50% Risk of investing in of the idea generation stage, as it provides theaverage net assets unsustainable / weak greater part of added value to the investments. companies Underpinning the stock selection process is theLOAD STRUCTURE OF THE SCHEME rigorous research conducted by dedicated1. Entry Load: NIL specialists. The approach to stock selection is largely specific, which means that these investment2. Exit Load: NIL professionals have the responsibility to design andTo know the latest position on Loads structure prior to investing / Redemption, refine their stock selection process to cope withinvestors are advised to contact any of the ISCs or the AMC at its toll-free the dynamic local factors and market conditions.number "1-800-22-5763". Quality analysis based investment approach:The investor is requested to check the prevailing load structure of the Scheme (i) Managementbefore investing. (ii) Capital structureDAILY NET ASSET VALUE (NAV) PUBLICATION (iii) Sustainability of competitive advantageThe Mutual Fund shall declare the NAV of the Scheme on every Business Day (iv) Return on equityon AMFI’s website www.amfiindia.com by 9.00 p.m. and also on its own website (v) Industry attractivenesswww.jpmorganmf.com. In case of any delay, the reasons for such delay would In general, there are three primary sources ofbe explained to AMFI. If the NAVs are not available before commencement of investment return which the investmentbusiness hours on the following Business Day due to any reason, the Mutual professionals normally focus on and they form theFund shall issue a press release providing reasons and explaining when the basic premise of the stock selection process:Mutual Fund would be able to publish the NAVs. (i) Growth - companies that exhibit sustainable earnings growth in excess of the market through an economic cycle;JPMORGAN JF GREATER CHINA EQUITY (ii) Valuations - quantitative analysis in evaluatingOFF-SHORE FUND the value and profitability of the company; (iii) Dividend yield - an additional source of return,NAME OF THE SCHEME over and above capital appreciation.JPMorgan JF Greater China Equity Off-shore Fund Price Risk During company visits, qualitative assessments of Risk of overpaying for the relative growth prospects of the companiesTYPE OF SCHEME a company concerned are made and strategies are decided toAn open-ended fund of funds scheme. create shareholder value. Industries in which companies operate are analysed along with theINVESTMENT OBJECTIVE competitive landscape as well as the managementThe primary investment objective of the Scheme is to provide long term capital strategy to enhance competitive advantage andappreciation by investing in JPMorgan Funds - JF Greater China Equity Fund, returns. As part of the process, meetings arean equity fund which invests primarily in a diversified portfolio of companies organised not only with companies that fall withinincorporated or which have their registered office located in, or derive the the core stock coverage, but also with theirpredominant part of their economic activity from, a country in the Greater competitors, distributors, suppliers and otherChina region. stakeholders in order to obtain a complete picture of the industry/company and other investment opportunities. In the process, a clearASSET ALLOCATION PATTERN understanding of the business is arrived at,Under normal circumstances, it is anticipated that the asset allocation shall enabling the identification of future long-termbe as follows: winners at an early stage. Types of Instruments Normal Allocation Risk Concentration Risk Portfolio construction is the responsibility of the (% of Net Assets) profile investment manager assigned to each fund.Units / shares of JPMorgan Funds - 80% - 100% Medium There are three objectives to the portfolioJF Greater China Equity Fund to High construction process:Money market instruments and/or 0% - 20 % Low (i) to capture and preserve value from all the bestunits of liquid schemes to Medium ideas by country specialists; (ii) to ensure no single decision will derailNote : performance; and(a) Since the Scheme is a Fund of Funds scheme, it cannot invest in any other (iii) to deliver in line with the funds risk/return Fund of Funds scheme; profiles.(b) Since the Scheme is a Fund of Funds scheme, it cannot invest its assets Portfolios are constructed using a disciplined other than in schemes of mutual funds, except to the extent of funds and tailored approach, and there is a high required for meeting the liquidity requirements for the purpose of degree of commonality across accounts with repurchases or Redemptions. similar objectives and profiles. During the process, the investment manager assigns aUnder normal market conditions, the corpus of the Scheme shall be invested in target percentage weight based uponunits / shares of JPMorgan Funds - JF Greater China Equity Fund as per the variations, positive or negative, from theasset allocation detailed above. However, prevailing market conditions can predetermined fund benchmark weight.compel the AMC to invest beyond the range set out above. Such deviations shall Investment managers may also incorporatehowever normally be for short term purposes only, for temporary defensive their own views on individual stocks andconsiderations and with the intention of protecting the interests of the Unit exercise discretion to align with the aboveHolders. In the event of deviations, rebalancing will normally be carried out guidelines with the objective that is likely towithin 10 (ten) Business Days. be achieved by inclusion of the stock in a fundThe exposure of JPMorgan Funds - JF Greater China Equity Fund in India will portfolio. The investment manager will alsonot be gained through participatory notes. reconcile any other anomalies between the stock rankings and portfolio requirements with the overall objective of adding value to the fund 16
  • 19. Risk and Description Risk Mitigants / Management Strategy Applicable NAV mentioned in the SID as applicable to Purchase and Redemptionspecific to Equities shall be applied respectively to the ‘switch-in’ and ‘switch-out’ applications. portfolio. In case the switch request is received on a business day of the switch out scheme and if the same day is a non business day for switch in scheme, switch A dedicated team oversees investment managers out will be processed on the same day. However, the switch in will be processed to ensure compliance with the funds internal on the immediate next business day. requirements. The buy / sell decisions generated at the portfolio construction stage of the process MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS are automatically checked against fund guidelines, and electronically forwarded to the trading team Minimum initial R 10,000 per application and in multiples for execution. application amount of R 1 thereafter.Liquidity Risk Dealing in volatile, often illiquid markets imposes Minimum additional R 1,000 per application and in multiplesHigh impact costs a cost on an active investment manager. The application amount of R 1 thereafter. responsibility for minimizing the performance drag Minimum redemption R 1,000 or 100 units. lies with the Dealing team whose focus is to amount / no. of Units minimize market impact and transaction costs. The competitive advantages in achieving this objective DESPATCH OF REPURCHASE (REDEMPTION) REQUEST are: Redemption proceeds will be paid by cheques, marked "A/c Payee only" and (i) An experienced team. drawn in the name of the sole holder / first-named holder (as determined by the records of the Registrar). The Mutual Fund will endeavour to despatch the (ii) State of the art systems and on-going Redemption proceeds normally within 7 (seven) Business Days from the investment in trading technology. acceptance of the Redemption request. However Regulatory timeline is 10 (iii) Analysis of historical transactions and Business Days. If the payment is not made within the period stipulated in the associated impact costs used to determine Regulations, the Unit Holder shall be paid interest @15% p.a. for the delayed trading strategies. period and the interest shall be borne by the AMC. (iv) Low commission rates paid to brokers, reducing The bank name and bank account number, as specified in the Registrars direct costs per trade. records, will be mentioned in the cheque. The cheque will be payable at par at (v) Significant overall commission payout ensuring all the cities having ISCs. If the Unit Holder resides in any other city, he will be premium service from investment banks and paid by a demand draft payable at the city of his residence and the demand brokerage firms. draft charges shall be borne by the AMC. The proceeds may be paid by way of direct credit / NEFT / RTGS / any other manner through which the investors The success of the dealing team can be measured bank account specified in the Registrars records may be credited with the by comparing each execution to the Volume Redemption proceeds. Weighted Average Price (VWAP) and on-line through the independent Best Execution Note: The Trustee, at its discretion at a later date, may choose to alter or add Comparison Service (BECS) which compares other modes of payment. transaction costs with those of the competition. Effectiveness of the dealing team is measured on BENCHMARK INDEX FOR PERFORMANCE COMPARISON an ongoing basis. MSCI Golden Dragon Index (Total Return Net)Volatility As explained above, the volatility arising out of DIVIDEND POLICYPrice volatility due to portfolio specific factors are being mitigated using There is no dividend option in the Scheme.company or portfolio a combination of various methods as explainedspecific factors above. NAME OF THE FUND MANAGEREvent Risk As explained above, the volatility arising out of Mr. Namdev Chougule.Price volatility due to portfolio specific factors are being mitigated using JF Asset Management Limited is the investment manager of the JPMorgancompany or portfolio a combination of various methods as explained Funds - JF Greater China Equity Fund, the underlying fund in respect of whosespecific events above. units / shares the Scheme invests in as per the asset allocation pattern above. JF Asset Management Limited makes the day to day decisions on behalf of theRISK PROFILE OF THE SCHEME underlying fund.Mutual Fund Units involve investment risks including the possible loss ofprincipal. Please read the SID carefully for details on risk factors before PERFORMANCE OF THE SCHEMEinvestment. Standard and Scheme Specific Risk Factors are summarized at Scheme Returns as on 31st March, 2011the end of this document. Scheme returns (%) MSCI Golden Dragon Index (%)PLANS AND OPTIONS Since inception 11.69% 8.22%The Scheme offers a growth option only. 1 year 15.14% 11.13%APPLICABLE NAV Absolute returns for each financial year for the last 2 yearsThe Cut-off time for the Scheme is 3.00 p.m., and the Applicable NAV will beas under: Scheme returns MSCI Golden Dragon IndexFor Purchase / Redemption 15.14% 15.00% –(a) In respect of valid Purchase / Redemption applications along with cheques / 12.00% – 11.13% demand drafts / other payment instruments accepted at a Designated 9.00% – Collection Centre up to 3.00 p.m. on a Business Day, the NAV of such day 6.00% – *3.62% *3.62% will be applicable. 3.00% –(b) In respect of valid Purchase / Redemption applications along with cheques / 0.00% – demand drafts / other payment instruments accepted at a Designated 2009-10 2010-11 Collection Centre after 3.00 p.m. on a Business Day, the NAV of the next Financial Years Business Day will be applicable. Note: Absolute returns of the growth option are computed for a period of lessThe above will be applicable only for cheques / demand drafts / payment than one year. "Since inception" returns are calculated on R 10 invested atinstruments payable locally in the city in which a Designated Collection Centre inception.is located. No outstation cheques will be accepted. Past performance may or may not be sustained in future. All calculationsFor Switches assume that all payouts during the period have been re-invested in the unitsValid applications for ‘switch-out’ shall be treated as applications for of the scheme.Redemption and valid applications for ‘switch-in’ shall be treated as *Allotment date: 26 August, 2009applications for Purchase, and the provisions of the Cut-off time and the 17
  • 20. EXPENSES OF THE SCHEME Maximum Recurring expenses:As per the Regulations, the following fees and expenses can be charged Daily average net assets Maximum, as a % ofto the Scheme: weekly average net assets1. Initial issue expenses First R 100 crores 2.50%No initial issue expenses were charged to the scheme. Next R 300 crores 2.25%2. Annual Scheme Recurring expenses Next R 300 crores 2.00%These estimated expenses include investment management and advisory fee Balance assets 1.75%charged by the AMC, the fees of the Registrar and Transfer Agents, marketingand selling costs etc. as given in the table below: Maximum investment management fee to be charged by the AMC: Particulars % of Net Assets Daily average net assets Maximum, as a % of Investment Management & Advisory Fee 0.750 daily average net assets Custodial Fees 0.010 First R 100 crores 1.25% Registrar & Transfer Agent Fees including 0.035 Balance assets 1.00% cost related to providing accounts statement, Any excess over these limits will be borne by the AMC. dividend / redemption cheques / warrants etc. Recurring expenses (Actual expenses for the financial year ending): Marketing & Selling Expenses including Agents Commission and statutory advertisement Particulars March 0.600 2011 Brokerage & Transaction Cost pertaining to the distribution of Units Total Recurring expenses as a percentage of Daily / Weekly 1.15% Audit Fees / Fees and expenses of Trustees 0.055 average net assets Costs related to investor communications 0.010 LOAD STRUCTURE OF THE SCHEME Costs of fund transfer from location to location 0.010 1. Entry Load : Other Expenses* 0.030 NIL Total Recurring Expenses 1.500 2. Exit Load :The AMC has estimated that up to 1.50% of the daily average net assets of the For each Redemption Exit Load (% ofScheme will be charged to the Scheme as expenses. The local fee may be Applicable NAV)changed based upon any changes to SEBI guidelines while remaining within Within 12 months from the date of allotment in 1.00%the maximum overall fees as per SEBI guidelines. For the actual current respect of purchase made other than through SIPexpenses being charged, the investor should refer to the website of the MutualFund (www.jpmorganmf.com). Within 12 months from the date of allotment in 1.00%Management fees shall not exceed 0.75% of the daily average net assets of respect of the first purchase made through SIPthe scheme. A switch-out or a withdrawal under SWP shall also attract an Exit Load like any*Other expenses: Any other expenses which are directly attributable to the Redemption.Scheme may be charged with approval of the Trustee within the overall limitsas specified in Regulation 52 (6) except those expenses which are specifically To know the latest position on Loads structure prior to investing / Redemption,prohibited. The AMC reserves the right to change the above, both inter se or investors are advised to contact any of the ISCs or the AMC at its toll-freein total, subject to prevailing Regulations. number "1-800-22-5763".The overall fees and expenses (management and other) that are charged in The investor is requested to check the prevailing load structure of the Schemethe underlying fund are currently 1.00%. before investing.The underlying fund is managed by an associated company of the JPMorgan DAILY NET ASSET VALUE (NAV) PUBLICATIONGroup. The NAVs will be calculated and disclosed on every Business Day. The NAV ofThe purpose of the above table is to assist in understanding the various costs the Scheme shall be made available at all ISCs of the AMC. The AMC will publishand expenses that the Unit Holder in the Scheme will bear directly or indirectly. the NAV for each Business Day in two daily newspapers. The AMC shall updateThe AMC reserves the right to change the estimates, both inter se or in total, the NAVs on the website of the Mutual Fund (www.jpmorganmf.com) and ofsubject to prevailing Regulations. In case the fees expenses of the underlying the Association of Mutual Funds in India (www.amfiindia.com) by 10.00 am onfund are more than as specified above, the fees and expenses of the AMC the next Business Day for each Business Day. In case of any delay, the reasonsshall be reduced, subject to the maximum that can be charged under the for such delay would be explained to AMFI. If the NAVs are not available beforeRegulations. In case the fees and expenses of the underlying fund are less commencement of business hours on the following Business Day due to anythan as specified above, the fees and expenses of the AMC may be increased, reason, the Fund shall issue a press release providing reasons and explainingsubject to the maximum that can be charged under the Regulations. The AMC when the Fund would be able to publish the NAVs.may incur actual expenses which may be more or less than those estimatedabove under any head and / or in total. The AMC will charge the Scheme suchactual expenses incurred, subject to the statutory limit prescribed in theRegulations, as given below. Any excess over these limits will be borne by the JPMORGAN INDIA SHORT TERM INCOME FUNDAMC. NAME OF THE SCHEMETotal fees charged: JPMorgan India Short Term Income FundSince the Scheme is a fund of funds scheme, the investors of the Scheme willhave to bear dual recurring expenses, those of the Scheme and those of the TYPE OF SCHEMEUnderlying fund. An Open ended Income SchemeRegulation 52(6)(a)ii states that the total expenses of the Scheme excluding INVESTMENT OBJECTIVEissue or Redemption expenses, whether initially borne by the Mutual Fund or The investment objective is to generate income by investing primarily in moneyby the AMC, but including the investment management and advisory fee shall market and short term debt instruments.be subject to the following limits: However, there can be no assurance that income can be generated, regular or(A) management fees for the scheme not exceeding 0.75% of the daily otherwise or that the investment objective of the Scheme will be realised. average net assets of the scheme;(B) other expenses relating to administration of the scheme; and ASSET ALLOCATION PATTERN(C) charges levied by the underlying schemes. Under normal circumstances, it is anticipated that the asset allocation shall be as follows:Provided that the sum total of (A), (B) and the weighted average of the totalexpense ratio of the underlying scheme shall not exceed 2.50% of the dailyaverage net assets of the scheme. 18
  • 21. Instruments Normal Allocation Risk (i) An experienced team. (% of Net Assets) profile (ii) State of the art systems and on-going Money market and *Debt instruments 65 - 100% Low investment in trading technology. including government securities with (iii) Analysis of historical transactions and maturity / average maturity / residual associated impact costs used to determine maturity / interest rate reset not trading strategies. greater than 1 year. (iv) Low commission rates paid to brokers, reducing *Debt instruments with maturity / 0 - 35% Low to direct costs per trade. average maturity / residual maturity / Medium (v) Significant overall commission payout ensuring interest rate reset greater than 1 year. premium service from investment banks and brokerage firms.* Debt Instruments include securitised debt. Securitised debt can be up to 50% of the net assets. Investment in Derivatives - Gross exposure up to 50% of the Effectiveness of the dealing team is measured on net asset of the Scheme. an ongoing basis.Floating rate debt instruments are debt instruments issued by Central / State Volatility As explained above, the volatility arising out ofGovernments, corporates, PSUs, etc. with interest rates that are reset periodically. Price volatility due to portfolio specific factors are being mitigated usingThe periodicity of interest reset could be daily, monthly, quarterly, half yearly, company or portfolio a combination of various methods as explainedand annually or any other periodicity that may be mutually agreed between the specific factors above.issuer and the Fund. The Scheme shall not invest in foreign securitised debt.Money market instruments include commercial papers, commercial bills, treasury RISK PROFILE OF THE SCHEMEbills, Collateralised Borrowing and Lending Obligations (CBLO), Government Mutual Fund Units involve investment risks including the possible loss ofSecurities having an unexpired maturity up to one year, call or notice money, principal. Please read the SID carefully for details on risk factors beforecertificates of deposit, usance bills and any other like instruments as specified investment. Standard and Scheme Specific Risk Factors are summarized atby the RBI from time to time. the end of this document.The Scheme can invest up to 50% of net assets in foreign securities. The Schemeshall not engage in stock lending. The scheme will not take any leverage position OPTIONSin derivatives. The total investment in debt securities and gross exposure in The Scheme offer two options - growth option and dividend option. Thederivatives, if any, shall not exceed the net assets of the scheme. However, the dividend option offers weekly, fortnightly, and monthly dividend reinvestmentScheme can borrow in accordance with SEBI Guidelines. options and monthly dividend payout.The Scheme retains the flexibility to invest across all securities in the debt andmoney market instruments. The Scheme may also invest in units of debt and APPLICABLE NAVliquid Mutual Fund schemes. For PurchaseThe endeavour of the scheme will be to maintain the modified duration in a a. Where the application is received upto 3.00 pm on a Business Day with arange of 1-3 years depending upon interest rate view. However, this can undergo local cheque or demand draft payable at par at the place where it isa change in case the market condition warrant and according to fund managers received, with amount less than R 1 crore. - Closing NAV of the day ofview. receipt of application;The Scheme proposes to hold a portfolio which would have a residual maturity b. Where the application is received after 3.00 pm on a Business Day with aof around 1-3 years. local cheque or demand draft payable at par at the place where it is received, with amount less than R 1 crore. - Closing NAV of the next BusinessRISK MITIGATION FACTORS Day;Concentration Risk Portfolio construction is the responsibility of the c. Where the application is received with a local cheque or demand draft investment manager assigned to each fund. payable at par at the place where it is received, with amount equal to or There are three objectives to the portfolio more than R 1 crore irrespective of the time of receipt of application, the construction process: closing NAV of the day on which the funds are available for utilisation (i) to capture and preserve value from all the best shall be applicable. ideas by country specialists; Applicability of NAV for the Scheme with an amount equal to or more than (ii) to ensure no single decision will derail R 1 crore: performance; and a) For allotment of units in respect of purchase in the Scheme, the following (iii) to deliver in line with the funds risk/return needs to be complied with: profiles. i. Application is received before the applicable cut-off time. Portfolios are constructed using a disciplined ii. Funds for the entire amount of subscription/purchase as per the and tailored approach, and there is a high application are credited to the bank account of the respective Scheme degree of commonality across accounts with before the cutoff time. similar objectives and profiles. During the process, the investment manager assigns a iii. The funds are available for utilization before the cut-off time without target percentage weight based upon availing any credit facility whether intra-day or otherwise, by the variations, positive or negative, from the respective Scheme. predetermined fund benchmark weight. b) For allotment of units in respect of switch-in to the Scheme from other Investment managers may also incorporate schemes, the following needs to be complied with: their own views on individual security and i. Application for switch-in is received before the applicable cut-off time. exercise discretion to align with the above guidelines with the objective that is likely to ii. Funds for the entire amount of subscription/purchase as per the switch- be achieved by inclusion of the security in a in request are credited to the bank account of the respective switch-in fund portfolio. The investment manager will Scheme before the cutoff time. also reconcile any other anomalies between the iii. The funds are available for utilization before the cut-off time without security rankings and portfolio requirements availing any credit facility whether intra-day or otherwise, by the with the overall objective of adding value to respective switch-in Scheme or Plans thereunder. the fund portfolio. The above will be applicable only for cheques / demand drafts / payment The Risk Management / Middle Office oversees instruments payable locally in the city in which a Designated Collection Centre investment managers to ensure compliance with is located. No outstation cheques will be accepted. the funds internal requirements. Note: For the avoidance of doubt, where applications are received for anLiquidity Risk Dealing in volatile, often illiquid markets imposes amount of less than R 1 crore on a Non-Business Day the closing NAV of theHigh impact costs a cost on an active investment manager. The next Business Day shall be applicable. responsibility for minimizing the performance drag lies with the Dealing team whose focus is to minimize For Redemption market impact and transaction costs. The competitive a. Where the application is received up to 3.00 pm on a Business Day - Closing advantages in achieving this objective are: NAV of the day of receipt of application; and 19
  • 22. b. Where the application is received after 3.00 pm on a Business Day - Closing Absolute returns for each financial year for the last 1 year NAV of the next Business Day. Scheme returns CRISIL Short -Term Bond Fund IndexNote: In case of applications received on a Non-Business Day the closing NAV 8.00% – 6.64%of the next Business Day shall be applicable. 6.00% – 5.12%For Switches 4.00% –Valid applications for ‘Switch-out’ shall be treated as applications for 2.00% –Redemption and valid applications for ‘Switch-in’ shall be treated as 0.00% –applications for Purchase, and the provisions of the cut-off time and the 2010-11applicable NAV mentioned in the SID as applicable to Purchase and Redemption Financial Yearsshall be applied respectively to the ‘Switch-in’ and ‘Switch-out’ applications. Note: Absolute returns of the growth option are computed for a period of lessMINIMUM APPLICATION AMOUNT / NUMBER OF UNITS than one year. "Since inception" returns are calculated on R 10 invested at inception. Initial Purchase R 5,000/- per application and in multiples of R 1/- thereafter. Past performance may or may not be sustained in future. All calculations assume that all payouts during the period have been re-invested in the units Additional Purchase R 1,000/- per application and of the scheme. in multiples of R 1/- thereafter. Allotment date: 25 March, 2010. Redemption amount/ R 5,000/- or 500 Units. no. of Units EXPENSES OF THE SCHEME As per the Regulations, the following fees and expenses can be charged to theDESPATCH OF REPURCHASE (REDEMPTION) REQUEST Scheme:Redemption proceeds will be paid by cheques, marked “A/c Payee only” and 1. Initial issue expensesdrawn in the name of the sole holder / first-named holder (as determined by No initial issue expenses were charged to the Scheme.the records of the Registrar). 2. Recurring expensesThe Mutual Fund will endeavour to despatch the Redemption proceeds within These are the fees and expenses for operating the Scheme. These expenses3 Business Days from the acceptance of the Redemption request, but not include investment management and advisory fee charged by the AMC, thebeyond 10 Business Days from the date of Redemption. If the payment is not Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inmade within the period stipulated in the Regulations, the Unit Holder shall be the table below:paid interest @ 15% p.a. for the delayed period and the interest shall be borneby the AMC. The AMC has estimated that upto 2.25% of the daily average net assets of the Scheme will be charged to the Scheme as expenses. For the actual currentThe bank name and bank account number, as specified in the Registrar’s expenses being charged, the investor should refer to the website of the Mutualrecords, will be mentioned in the cheque. The cheque will be payable at par at Fund (www.jpmorganmf.com).all the cities having ISCs. If the Unit Holder resides in any other city, he will bepaid by a demand draft payable at the city of his residence and the demand Particulars % of Net Assetsdraft charges shall be borne by the AMC. The proceeds may be paid by way of Investment Management & Advisory Fee 1.25direct credit / NEFT / RTGS / any other manner through which the investor’sbank account specified in the Registrar’s records may be credited with the Custodial Fees 0.10Redemption proceeds. Registrar & Transfer Agent Fees including cost 0.03Note: The Trustee, at its discretion at a later date, may choose to alter or add related to providing accounts statement,other modes of payment. dividend/Redemption cheques/warrants etc.The Redemption proceeds will be sent by courier or (if the addressee city is Marketing & Selling Expenses including Agentsnot serviced by the courier) by registered post. The despatch for the purpose Commission and statutory advertisementof delivery through the courier / postal department, as the case may be, shall 0.60 Brokerage & Transaction Cost pertaining to thebe treated as delivery to the investor. The AMC / Registrar are not responsible distribution of Unitsfor any delayed delivery or non-delivery or any consequences thereof, if thedespatch has been made correctly as stated in this paragraph. Audit Fees / Fees and expenses of Trustees 0.02 Costs related to investor communications 0.01BENCHMARK INDEX FOR PERFORMANCE COMPARISONCRISIL Short – Term Bond Fund Index Costs of fund transfer from location to location 0.10 *Other Expenses 0.14DIVIDEND POLICYThe Trustee may decide to distribute by way of dividend, the surplus by way of Total Recurring Expenses 2.25realised profit, dividends and interest, net of losses, expenses and taxes, if * Other expenses: Any other expenses which are directly attributable to theany, to Unit Holders in the dividend option of the Scheme if such surplus is Scheme may be charged with approval of the Trustee within the overallavailable and adequate for distribution in the opinion of the Trustee. The limits as specified in the Regulation 52(6) except those expenses which areTrustee’s decision with regard to availability and adequacy, rate, timing and specifically prohibited. The AMC reserves the right to change the above,frequency of distribution shall be final. The dividend will be due to only those both inter se or in total, subject to prevailing Regulations.Unit Holders whose names appear in the register of Unit Holders in the dividend The AMC reserves the right to change the estimates, both inter se or in total,option of the Scheme on the record date which will be announced in advance subject to prevailing Regulations.in accordance with MF Regulations. The Unit Holders have the option ofreceiving the dividend or reinvesting the same. The dividend will be reinvested The AMC will charge the Scheme such actual expenses incurred, subject toat the Applicable NAV of the immediately following Business Day. the statutory limit prescribed in the Regulations, as given below.The AMC shall dispatch to the Unit Holders, the dividend warrants within 30 Maximum Recurring expenses:days of the date of declaration of dividend. The dividend distribution procedure Daily average net assets Maximum, as a % ofshall be in accordance with the Regulations. daily average net assets First R 100 crores 2.25%NAME OF THE FUND MANAGERS Next R 300 crores 2.00%Mr. Nandkumar Surti and Mr. Namdev Chougule Next R 300 crores 1.75%PERFORMANCE OF THE SCHEME Balance assets 1.50%Scheme Returns as on 31st March, 2011 Maximum investment management fee to be charged by the AMC: Scheme returns (%) CRISIL Short -Term Daily average net assets Maximum, as a % of Bond Fund Index % daily average net assets Since inception 6.61% 5.13% First R 100 crores 1.25% Balance assets 1.00% 1 year 6.64% 5.12% Any excess over these limits will be borne by the AMC. 20
  • 23. Recurring expenses (Actual expenses for the financial year ending): The Scheme shall make investments in foreign securities as per clause 2(x) of SEBI Circular no. SEBI/IMD/CIR No. 7/104753/07 dated September 26, 2007.Particulars March 2011 Under normal market conditions, the corpus of the Scheme shall be invested in Units / shares of JPMorgan Funds - Emerging Europe, Middle East & Africa EquityTotal Recurring expenses as a percentage of Daily / 0.90% Fund as per the asset allocation detailed above. However, prevailing marketWeekly average net asset conditions can compel the AMC to invest beyond the range set out above. Such deviations shall however normally be for short term purposes, for temporaryLOAD STRUCTURE OF THE SCHEME defensive considerations and with the intention of protecting the interests ofFor NFO and Ongoing Offer basis the Unit Holders. In the event of deviations, rebalancing will normally be carried out within 10 (ten) Business Days.1. Entry Load : NIL Any exposure that JPMorgan Funds - Emerging Europe, Middle East & Africa Equity Fund has in India will not be gained through participatory notes.2. Exit Load :For each Redemption (% of Applicable NAV) RISK MITIGATION FACTORS Risk and Description Risk Mitigants / Management StrategyWithin 15 days from the date of allotment in specific to Equitiesrespect of Purchase made other than through SIP 0.15% Quality Risk The stock selection process is an important partWithin 15 days from the date of allotment in Risk of investing in of the idea generation stage, as it provides therespect of each Purchase made through SIP 0.15% unsustainable / weak greater part of added value to the investments.All Loads are intended to enable the AMC to recover expenses incurred for companies Underpinning the stock selection process is thepromotion or distribution and sale of the Units of the Scheme. All Loads will rigorous research conducted by dedicated countrybe retained in the Scheme in a separate account and will be utilised to meet specialists. The approach to stock selection isthe distribution and marketing expenses. Any surplus amounts in this account largely country specific, which means that thesemay be credited to the Scheme whenever considered appropriate by the AMC. investment professionals have the responsibility toThe investor is requested to check the prevailing load structure of the Scheme design and refine their stock selection process tobefore investing. cope with the dynamic local factors and market conditions.For the most up to date information on Entry / Exit Loads investors areadvised to contact their ISC or the AMC at its toll-free number (1800-22- Quality analysis based investment approach:5763) prior to any application / redemption. (i) ManagementDAILY NET ASSET VALUE (NAV) PUBLICATION (ii) Capital structureThe AMC will calculate and disclose the NAV of the Scheme on every Business (iii) Sustainability of competitive advantageDay. The NAV of the Scheme will be made available at all ISCs of the AMC. TheAMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) (iv) Return on equityand of the Association of Mutual Funds in India (www.amfiindia.com) by 9.00 (v) Industry attractivenessp.m. on every Business Day. In case of any delay, the reasons for such delay In general, there are three primary sources ofwould be explained to AMFI. If the NAVs are not available before investment return which the investmentcommencement of business hours on the following Business Day due to any professionals normally focus on and they form thereason, the Fund shall issue a press release providing reasons and explaining basic premise of the stock selection process:when the Fund would be able to publish the NAV. (i) Growth - companies that exhibit sustainable earnings growth in excess of the market through an economic cycle;JPMORGAN EMERGING EUROPE, MIDDLE EAST (ii) Valuations - quantitative analysis in evaluatingAND AFRICA EQUITY OFF-SHORE FUND the value and profitability of the company;NAME OF THE SCHEME (iii) Dividend yield - an additional source of return,JPMorgan Emerging Europe, Middle East and Africa Equity Off-Shore Fund over and above capital appreciation.TYPE OF SCHEME Price Risk During company visits, qualitative assessments of Risk of overpaying for the relative growth prospects of the companiesAn open-ended fund of funds scheme. a company concerned are made and strategies are decided toINVESTMENT OBJECTIVE create shareholder value. Industries in which companies operate are analysed along with theThe primary investment objective of the Scheme is to provide long term capital competitive landscape as well as the managementappreciation by investing in JPMorgan Funds - Emerging Europe, Middle East strategy to enhance competitive advantage andand Africa Equity Fund, an equity fund which invests primarily in a diversified returns. As part of the process, meetings areportfolio of companies incorporated or which have their registered office organised not only with companies that fall withinlocated in, or derive the predominant part of their economic activity from, an the core stock coverage, but also with theiremerging market in central, eastern and southern Europe, Middle East or Africa. competitors, distributors, suppliers and otherHowever, there can be no assurance that the investment objective of the stakeholders in order to obtain a complete pictureScheme will be realised. of the industry/company and other investment opportunities. In the process, a clearASSET ALLOCATION PATTERN understanding of the business is arrived at,Under normal circumstances, it is anticipated that the asset allocation shall enabling the identification of future long-termbe as follows: winners at an early stage. Types of Instruments Normal Allocation Risk Concentration Risk Portfolio construction is the responsibility of the (% of Net Assets) profile investment manager assigned to each fund. Units / shares of JPMorgan Funds 80% - 100% Medium There are three objectives to the portfolio - Emerging Europe, Middle East to High construction process: and Africa Equity Fund (i) to capture and preserve value from all the best Money market instruments and/or 0% - 20% Low to ideas by country specialists; units of liquid schemes Medium (ii) to ensure no single decision will derailNote : performance; andJPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund shall (iii) to deliver in line with the funds risk/returnnot invest in Derivatives, Stock Lending and Securitised Debt. profiles. 21
  • 24. Risk and Description Risk Mitigants / Management Strategy For Purchase / Redemptionspecific to Equities (a) In respect of valid Purchase / Redemption applications along with cheques / Portfolios are constructed using a disciplined and demand drafts / other payment instruments accepted at a Designated tailored approach, and there is a high degree of Collection Centre up to 3.00 p.m. on a Business Day, the NAV of such day commonality across accounts with similar will be applicable. objectives and profiles. During the process, the (b) In respect of valid Purchase / Redemption applications along with cheques / investment manager assigns a target percentage demand drafts / other payment instruments accepted at a Designated weight based upon variations, positive or negative, Collection Centre after 3.00 p.m. on a Business Day, the NAV of the next from the predetermined fund benchmark weight. Business Day will be applicable. These variations are known as active money The above will be applicable only for cheques / demand drafts / payment positions and can be easily accessed on the internal instruments payable locally in the city in which a Designated Collection Centre front office system which contains information on is located. No outstation cheques will be accepted. both the fund and its respective benchmark index. Investment managers may also incorporate their For Switches own views on individual stocks and exercise Valid applications for ‘switch-out’ shall be treated as applications for discretion to align with the above guidelines with Redemption and valid applications for ‘switch-in’ shall be treated as the objective that is likely to be achieved by applications for Purchase, and the provisions of the Cut-off time and the inclusion of the stock in a fund portfolio. The Applicable NAV mentioned in the SID as applicable to Purchase and Redemption investment manager will also reconcile any other shall be applied respectively to the ‘switch-in’ and ‘switch-out’ applications. anomalies between the stock rankings and In case the switch request is received on a business day of the switch out portfolio requirements with the overall objective scheme and if the same day is a non business day for switch in scheme, switch of adding value to the fund portfolio. out will be processed on the same day. However, the switch in will be processed A dedicated team oversees investment managers on the immediate next business day. to ensure compliance with the funds internal requirements. The buy / sell decisions generated MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS at the portfolio construction stage of the process Minimum initial R 5,000 per application and in multiples of are automatically checked against fund guidelines, application amount R 1 thereafter. and electronically forwarded to the trading team for execution. Minimum additional R 1,000 per application and in multiples of application amount R 1 thereafter.Liquidity Risk Dealing in volatile, often illiquid markets imposesHigh impact costs a cost on an active investment manager. The Minimum redemption R 1,000 or 100 units. responsibility for minimizing the performance drag amount / no. of Units lies with the Central Dealing team whose focus is to minimize market impact and transaction costs. DESPATCH OF REPURCHASE (REDEMPTION) REQUEST The competitive advantages in achieving this Redemption proceeds will be paid by cheques, marked "A/c Payee only" and objective are: drawn in the name of the sole holder / first-named holder (as determined by (i) A specialist experienced team. the records of the Registrar). The Mutual Fund will endeavour to despatch the Redemption proceeds normally within 7 (seven) Business Days from the (ii) State of the art systems and on-going acceptance of the Redemption request. However Regulatory timeline is 10 investment in trading technology. Business Days. If the payment is not made within the period stipulated in the (iii) Analysis of historical transactions and Regulations, the Unit Holder shall be paid interest @15% p.a. for the delayed associated impact costs used to determine period and the interest shall be borne by the AMC. trading strategies. The bank name and bank account number, as specified in the Registrars (iv) Low commission rates paid to brokers, reducing records, will be mentioned in the cheque. The cheque will be payable at par at direct costs per trade. all the cities having ISCs. If the Unit Holder resides in any other city, he will be (v) Significant overall commission payout ensuring paid by a demand draft payable at the city of his residence and the demand premium service from investment banks and draft charges shall be borne by the AMC. The proceeds may be paid by way of brokerage firms. direct credit / NEFT / RTGS / any other manner through which the investors The success of the dealing team can be measured bank account specified in the Registrars records may be credited with the by comparing each execution to the Volume Redemption proceeds. Weighted Average Price (VWAP) and on-line Note: The Trustee, at its discretion at a later date, may choose to alter or add through the independent Best Execution other modes of payment. Comparison Service (BECS) which compares transaction costs with those of the competition. BENCHMARK INDEX FOR PERFORMANCE COMPARISON Effectiveness of the dealing team is measured on MSCI EMEA (Total Return Net) an ongoing basis.Volatility As explained above, the volatility arising out of DIVIDEND POLICYPrice volatility due to portfolio specific factors are being mitigated using There is no dividend option in the Scheme.company or portfolio a combination of various methods as explainedspecific factors above. NAME OF THE FUND MANAGEREvent Risk As explained above, the volatility arising out of Mr. Namdev Chougule.Price volatility due to portfolio specific factors are being mitigated using JPMorgan Asset Management (UK) Limited is the investment manager of thecompany or portfolio a combination of various methods as explained JPMorgan Funds -Emerging Europe, Middle East and Africa Fund, the underlyingspecific events above. Fund in respect of whose Units / Shares the Scheme invests in as per the asset allocation pattern above. JPMorgan Asset Management (UK) LimitedRISK PROFILE OF THE SCHEME makes the day to day decisions on behalf of the underlying Fund.Mutual Fund Units involve investment risks including the possible loss of The underlying scheme can be managed by any entity within the JPMorganprincipal. Please read the SID carefully for details on risk factors before group.investment. Standard and Scheme Specific Risk Factors are summarized atthe end of this document. PERFORMANCE OF THE SCHEME Scheme Returns as on 31st March, 2011PLANS AND OPTIONSThe Scheme offers a growth option only. Scheme MSCI EMEA Returns (%) Total Return Net (%)APPLICABLE NAV Since inception 0.46% 8.33%The Cut-off time for the Scheme is 3.00 p.m., and the Applicable NAV will beas under: 22
  • 25. Absolute returns for each financial year for the last 1 year Regulations. The AMC will charge the Scheme such actual expenses incurred, subject to the statutory limit prescribed in the SEBI Regulations, as given Scheme Returns MSCI EMEA below. Any excess over these limits will be borne by the AMC. 10.00% – *8.33% 8.00% – Total fees charged: 6.00% – Since the Scheme is a Fund of Funds scheme, the investors of the Scheme will have to bear dual recurring expenses, those of the Scheme and those of the 4.00% – Underlying fund. However, the management fees and other expenses charged 2.00% – *0.46% by the Underlying fund together with the management fee and recurring 0.00% – expenses charged to the Scheme shall not exceed the total limits on expenses 2010-11 as prescribed under Regulation 52(6) of the SEBI Regulations as applicable to Financial Years a Fund of Funds scheme.Note: Absolute returns of the growth option are computed for a period of less Regulation 52(6)(a)ii of the SEBI Regulations states that the total expenses ofthan one year. "Since inception" returns are calculated on R 10 invested at the Scheme excluding issue or Redemption expenses, whether initially borneinception. by the Mutual Fund or by the AMC, but including the investment managementPast performance may or may not be sustained in future. All calculations and advisory fee shall be subject to the following limits :-assume that all payouts during the period have been re-invested in the units (A) management fees for the scheme not exceeding 0.75% of the daily averageof the scheme. net assets of the scheme;*Allotment date: 8 November, 2010 (B) other expenses relating to administration of the Scheme; and (C) charges levied by the underlying schemes:EXPENSES OF THE SCHEMEAs per the Regulations, the following fees and expenses can be charged Provided that the sum total of (A), (B) and the weighted average of the totalto the Scheme: expense ratio of the underlying schemes shall not exceed 2.50% of the daily average net assets of the scheme.1. Initial issue expenses Investors are informed that they will be bearing the recurring expenses of theNo initial issue expenses were charged to the scheme. Scheme in addition to the expenses of other underlying schemes in which the2. Annual Scheme Recurring expenses Scheme is invested. Any excess over these limits will be borne by the AMC.These estimated expenses include investment management and advisory fee Maximum Recurring expenses:charged by the AMC, the fees of the Registrar and Transfer Agents, marketingand selling costs etc. as given in the table below: Daily average net assets Maximum, as a % of weekly average net assets Particulars % of Net Assets First R 100 crores 2.50% Investment Management & Advisory Fee 0.75 Next R 300 crores 2.25% Custodial Fees 0.010 Next R 300 crores 2.00% Registrar & Transfer Agent Fees including cost related 0.035 Balance assets 1.75% to providing accounts statement, dividend / Maximum investment management fee to be charged by the AMC: redemption cheques / warrants etc. Marketing & Selling Expenses including Agents Daily average net assets Maximum, as a % of Commission and statutory advertisement daily average net assets 0.50 Brokerage & Transaction Cost pertaining to First R 100 crores 1.25% distribution of units Balance assets 1.00% Audit Fees / Fees and expenses of the Trustee 0.055 Any excess over these limits will be borne by the AMC. Costs related to investor communications 0.010 Recurring expenses (Actual expenses for the financial year ending): Costs of fund transfer from location to location 0.010 Particulars March * Other Expenses 0.030 2011 Total Recurring Expenses 1.40 Total Recurring expenses as a percentage 1.39%*Other expenses: Any other expenses which are directly attributable to the of Daily / Weekly average net assetsScheme may be charged with approval of the Trustee within the overall limitsas specified in Regulation 52 (6) of the SEBI Regulations except those expenses LOAD STRUCTURE OF THE SCHEMEwhich are specifically prohibited. 1. Entry Load : NILThe AMC has estimated that up to 1.40% of the daily average net assets of the 2. Exit Load :Scheme will be charged to the Scheme as annual Scheme recurring expenses. For each Redemption Exit Load (% ofThe local fee may be changed based upon any changes to SEBI Guidelines Applicable NAV)while remaining within the maximum overall fees as per SEBI guidelines. For Within 12 months from the date of allotment in 1.00%the actual current expenses being charged, the investor should refer to the respect of purchase made other than through SIPwebsite of the Mutual Fund (www.jpmorganmf.com).The maximum total fees (management and other) that are charged in the Within 12 months from the date of allotment in 1.00%Underlying fund are currently 1.10%. respect of the first purchase made through SIPThe overall maximum fees in the Underlying fund and the Scheme are subject A switch-out or a withdrawal under SWP shall also attract an Exit Load like anyto SEBIs limits. Redemption.The underlying fund is managed by an associated Company of the Sponsor. To know the latest position on Loads structure prior to investing / Redemption, investors are advised to contact any of the ISCs or the AMC at its toll-freeThe purpose of the above table is to assist in understanding the various costs number "1-800-22-5763".and expenses that the Unit Holder in the Scheme will bear directly or indirectly. The investor is requested to check the prevailing load structure of the SchemeThe above estimates for recurring expenses for the Scheme are based on the before investing.corpus size of INR 1000 million, and may change to the extent assets arelower or higher. DAILY NET ASSET VALUE (NAV) PUBLICATIONThe AMC reserves the right to change the estimates, both inter se or in total, The NAVs will be calculated and disclosed on every Business Day. The NAV ofsubject to prevailing SEBI Regulations. the Scheme shall be made available at all ISCs of the AMC. The AMC will publish the NAV for each Business Day in two daily newspapers. The AMC shall updateThe AMC may incur actual expenses which may be more or less than those the NAVs on the website of the Mutual Fund (www.jpmorganmf.com) and ofestimated above under any head and / or in total. In case the fees and expenses the Association of Mutual Funds in India (www.amfiindia.com) by 10.00 am onof the Underlying fund are more than as specified above, the fees and expenses the next Business Day for each Business Day. In case of any delay, the reasonsof the AMC shall be reduced, subject to the maximum that can be charged for such delay would be explained to AMFI. If the NAVs are not available beforeunder the SEBI Regulations. In case the fees and expenses of the Underlying commencement of business hours on the following Business Day due to anyfund are less than as specified above, the fees and expenses of the AMC may reason, the Fund shall issue a press release providing reasons and explainingbe increased, subject to the maximum that can be charged under the SEBI when the Fund would be able to publish the NAVs. 23
  • 26. COMPARISON BETWEEN THE SCHEMESName Asset Investment Investment Differentiation AUM No. ofof the Allocation Objective Strategy (in crs.) Foliosexisting Pattern* as on as onscheme 31-3-2011 31-3-2011JPMorgan Equity and equity The investment The Scheme will primarily be a diversified equity fund An open-ended 400.04 58532India related securities objective of the which will seek to invest in companies for long term equity growthEquity 65-100%; Debt and Scheme is to investment. Though the benchmark is BSE-200, the scheme having aFund Money market generate income and investments will not be limited to the companies diversified portfolio instruments 0-35%. long-term capital constituting the benchmark. The types of companies that of equity and equity- growth from a may fall within the scope of such investment could include related securities diversified portfolio but are not limited to: - companies with strong growth including equity of predominantly potential; - companies with a special product which has derivatives. a particular market niche and therefore good earnings equity and equity potential; - companies undertaking corporate related securities restructuring. The investment approach will be bottom- including equity up stock picking – where investments will be selected derivatives. primarily on the basis of specific criteria relevant to the However, there can company in question rather than general macroeconomic be no assurance that considerations. There will be no particular bias towards the investment any market cap size or any sector. The Scheme will objective of the endeavour to remain fully invested in equity and equity Scheme will be related instruments at all times. An exposure to various realised. derivatives instruments is likely - for the purposes of hedging, portfolio balancing and optimising returns.JPMorgan Equity and equity The investment objective The Scheme will primarily be a diversified equity An open-ended 183.38 39218India related securities of is to seeks to generate fund which will seek to invest in companies for long equity growthSmaller Smaller Companies long-term capital term investment. Though the benchmark is CNX- scheme, constitutingCompanies 65-100% ; Equity and appreciation from a MIDCAP, the investments will not be limited to the a portfolio of equityFund equity related portfolio that is companies constituting the benchmark. The types and equity related securities of substantially consituted of companies that may fall within the scope of such securities focused on of equity and equity- investment could include but are not limited to: – companies other than related securities smaller companies. Smaller Companies companies with strong growth potential; – focused on smaller companies with a special product which has a 0-35% ; Debt and companies. Generally the particular market niche and therefore good money market universe will be the earnings potential; – companies undertaking instruments 0-35%. companies constituting corporate restructuring. The investment approach the bottom fourth by way will be bottom-up stock picking – where investments of market capitalization will be selected primarily on the basis of specific of stocks listed on the criteria relevant to the company in question rather National Stock Exchange than general macroeconomic considerations. There or The Bombay Stock will be no particular bias towards any sector. The Exchange. The fund focus will be on companies constituting the bottom manager may from time fourth by way of market capitalization of stocks to time include other listed on the National Stock Exchange or The Stock equity and equity related Exchange-Mumbai. The strategy will be to identify securities outside the universe to achieve companies early or which have potential to scale optimal portfolio up significantly to become materially larger in the construction. medium to long term. The Scheme will endeavour to remain fully invested in equity and equity related However, there can be no instruments at all times. An exposure to various assurance that the derivatives instruments is likely for the purposes of investment objective of hedging, portfolio balancing and optimising returns. the Scheme will be Criteria of selecting companies constituting the realised. bottom fourth by way of market capitalization.JPMorgan Equity and equity The investment The Scheme will primarily be a diversified equity An open-ended 3.62 1805India Tax related Securities objective of the fund which will seek to invest in companies for long equity linked savingAdvantage 80-100%; Debt and Scheme is to term investment. Though the benchmark is BSE- scheme with aFund Money Market generate income and 200, the investments will not be limited to the diversified portfolio instruments 0-20%. long-term capital companies constituting the benchmark. The types of predominantly appreciation from a of companies that may fall within the scope of such equity and equity diversified portfolio investment could include but are not limited to: n related securities. of predominantly companies with strong growth potential; n This is an equity equity and equity- companies with a special product which has a linked saving scheme related securities. particular market niche and therefore good with a three year However, there can earnings potential; and/or n companies undertaking lock-in period from be no assurance that corporate restructuring. The investment approach the date of allotment the investment will be bottom-up stock picking where investments of units proposed to objective of the will be selected primarily on the basis of specific be redeemed. Scheme will be criteria relevant to the company in question rather realised as actual than general macroeconomic considerations. There market movements will be no particular bias towards any market may be at variance capitalisation size or any sector. The Scheme will with anticipated endeavour to remain fully invested in equity and trends. equity-related instruments at all times. 24
  • 27. Name Asset Investment Investment Differentiation AUM No. ofof the Allocation Objective Strategy (in crs.) Foliosexisting Pattern* as on as onscheme 31-3-2011 31-3-2011JPMorgan Units/ shares of The primary investment The primary investment objective of the Scheme An open-ended fund 125.04 1426JF Greater JPMorgan Funds - JF objective of the scheme is is to provide long term capital appreciation by of funds schemeChina Greater China Equity to provide long term investing in JPMorgan Funds - JF Greater China aiming at a long termEquity Fund normal capital appreciation by Equity Fund, an equity fund which invests capital appreciationOff-shore allocation of net investing in JPMorgan primarily in a diversified portfolio of companies by investing inFund assets 80-100%; Funds - JF Greater China incorporated or which have their registered JPMorgan Funds - JF Money market Equity Fund, an equity office located in, or derive the predominant part Greater China Equity instruments and / or fund which invests of their economic activity from, a country in the Fund. units of liquid primarily in a diversified Greater China region. The Scheme may also schemes normal portfolio of companies invest a part of its corpus in money market allocation of net incorporated or which instruments and / or units of liquid schemes to assets 0-20%. have their registered meet liquidity requirements from time to time. office located in, or derive the predominant part of their economic activity from, a country in the Greater China region.JPMorgan Money market The investment objective The domestic debt markets are maturing rapidly An open ended liquid 340.53 455India instruments (includ- of the scheme is to provide with liquidity emerging in various debt segments scheme aiming at lowLiquid ing cash and reverse reasonable returns, through the introduction of new instruments risk while providingFund repo and debt commensurate with low and investors. The objective will be to allocate high level of liquidity. instruments with risk while providing a high the assets of the Scheme between various JPMorgan India maturity upto 91 level of liquidity through a money market and fixed income Securities with Liquid Fund holds a days) up to 100%; portfolio of money market the objective of providing liquidity and achieving portfolio which has a Securitised debt and debt securities. optimal returns. average maturity of instruments with However, there can be no not more than 91 maturity up to 91 days assurance that the upto 30%. days. investment objective of the Scheme will be realisedJPMorgan Money market & debt The investment objective The domestic debt markets are maturing rapidly An open ended 439.19 601India instruments with of the Scheme is to provide with liquidity emerging in various debt segments Income scheme, withTreasury maturity / average Liquidity and optimal through the introduction of new instruments a portfolio ofFund maturity / interest returns by investing and investors. The objective will be to allocate marginally higher rate reset not greater primarily in a mix of short- the assets of the Scheme between various maturity and than 1 year 70-100%; term debt and money money market and fixed income Securities with moderately higher Debt instruments market instruments which the objective of providing liquidity and achieving credit risk compared with maturity greater results in a portfolio having optimal returns. to liquid fund. than 1 year but less marginally higher maturity than 3 years up and moderately higher 0-30%. credit risk as compared to a liquid fund at the same time maintaining balance safety and liquidity. However, there can be no assurance that the investment objective of the Scheme will be realised.JPMorgan Money market and The investment objective The domestic debt markets are maturing rapidly An open ended 4.39 182India Debt instruments of the Scheme is to with liquidity emerging in various debt segments Income schemeActive with maturity / generate optimal returns through the introduction of new instruments aiming at generatingBond average maturity / while maintaining liquidity and investors. The objective will be to allocate optimal returnsFund interest rate reset not through active the assets of the Scheme between various through active greater than one year management of the money market and fixed income Securities with management of the 10-100%; Debt portfolio by investing in the objective of providing liquidity and achieving portfolio. instruments including debt and money market optimal returns. government securi- instruments. ties and corporate However, there can be no Debt 0-90%. assurance that the investment objective of the Scheme will be realised. 25
  • 28. Name Asset Investment Investment Differentiation AUM No. of of the Allocation Objective Strategy (in crs.) Folios existing Pattern* as on as on scheme 31-3-2011 31-3-2011 JPMorgan Money market and The investment objective The domestic debt markets are maturing rapidly An open ended 188.36 167 India Debt instruments of the Scheme is to with liquidity emerging in various debt segments Income scheme Short including government generate income by through the introduction of new instruments investing primarily Term securities with investing primarily in and investors. The objective will be to allocate in money market Income maturity / average money market and short the assets of the Scheme between various and short term Fund maturity / residual term debt instruments. money market and fixed income Securities with debt instruments. maturity / interest rate reset not greater However, there can be no the objective of providing liquidity and achieving than one year assurance that income can optimal returns. The portfolio duration will 65-100%; Debt be generated, regular or undergo a change according to the expected instruments with otherwise or that the movement in interest rates. Liquidity conditions maturity / average investment objective of the and other macro-economic factors affecting maturity / residual Scheme will be realised. interest rates shall be taken into account for maturity / interest varying the portfolio duration. Under normal rate reset greater circumstances, if the interest rates move down, than one year 0-35%. the duration of the portfolio shall be increased and vice versa. The Investment Manager may review the pattern of investments based on views on interest rates and asset liability management needs. JPMorgan Units / shares of The primary investment The primary investment objective of the Scheme An open-ended fund 5.65 163 Emerging JPMorgan Funds - objective of the Scheme is is to provide long term capital appreciation by of funds scheme Europe, Emerging Europe, to provide long term investing in JPMorgan Funds - Emerging Europe, aiming at a long term Middle 80%-100%; Middle capital appreciation by Middle East and Africa Equity Fund, an equity fund capital appreciation by East and East and Africa Equity investing in JPMorgan which invests primarily in a diversified portfolio investing in JPMorgan Africa Fund; Money market Funds - Emerging Europe, of companies incorporated or which have their Funds - Emerging instruments and/or Middle East and Africa registered office located in, or derive the Europe, Middle East Equity units of liquid Off-Shore Equity Fund, an equity predominant part of their economic activity from, and Africa Equity schemes 0% - 20%. fund which invests an emerging market in central, eastern and Fund. Fund primarily in a diversified southern Europe, Middle East or Africa. portfolio of companies The Scheme may also invest a part of its corpus in incorporated or which money market instruments and / or units of liquid have their registered office schemes to meet liquidity requirements from time located in, or derive the to time. predominant part of their economic activity from, an emerging market in central, eastern and southern Europe, Middle East or Africa. However, there can be no assurance that the investment objective of the Scheme will be realised.* Please refer Asset Allocation Pattern under each Scheme for more details.COMMON FEATURES FOR ALL SCHEMES The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of R 1,00,000 (One Lakh Rupees) made by it towards setting up the Mutual Fund.RISK FACTORS The present Schemes are not a guaranteed or assured return schemes.Standard Risk Factors for all schemes:Investment in mutual fund units involves investment risks such as trading Scheme specific risk factors for all schemes:volumes, settlement risk, liquidity risk, default risk including the possible loss Schemes investing in money market instrumentsof principal. Investments in money market instruments would involve a moderate creditAs the price / value / interest rates of the Securities in which the Scheme risk, i.e. risk of an issuers liability to meet the principal payments.invests fluctuates, the value of your investment in the Scheme may go up or Money market instruments may also be subject to price volatility due todown. factors such as changes in interest rates, general level of market liquidityMutual Funds, like Securities investments, are subject to market and other and market perception of credit worthiness of the issuer of suchrisks and there can be no guarantee against loss resulting from an investment instruments.in the Scheme nor can there be any assurance that the Schemes objectives The NAV of the Schemes Units, to the extent that the Scheme is investedwill be achieved. in money market instruments, will be affected by changes in the level ofPast performance of the Sponsor/AMC/Mutual Fund does not guarantee future interest rates. When interest rates in the market rise, the value of a portfolioperformance of the Scheme. of money market instruments can be expected to decline.JPMorgan India Equity Fund, JPMorgan India Liquid Fund, JPMorgan India Schemes investing in BondsTreasury Fund, JPMorgan India Smaller Companies Fund, JPMorgan India Active Risk Factors associated with Debt Securities:Bond Fund, JPMorgan India Tax Advantage Fund, JPMorgan JF Greater China The NAV of the Scheme, to the extent invested in Debt Securities, will beEquity Off-shore Fund, JPMorgan India Short Term Income Fund and JPMorgan affected by changes in the general level of interest rates. The NAV of theEmerging Europe, Middle East & Africa Equity Off-shore Fund are only the Scheme is expected to increase from a fall in interest rates while it wouldnames of the Schemes and does not in any manner indicate either the quality be adversely affected by an increase in the level of interest Rates.of the Schemes or their future prospects and returns. 26
  • 29. Debt Securities, while fairly liquid, lack a well-developed secondary market, on floating rate securities are reset periodically in line with the benchmarkwhich may restrict the selling ability of the Scheme and may lead to the index movement. Normally, the interest rate risk inherent in a floatingScheme incurring losses till the security is sold. rate instrument is limited compared to a fixed rate instrument. ChangesDebt Securities are subject to the risk of the issuers inability to meet in the prevailing level of interest rates will likely affect the value of theinterest and principal payments on its obligations and market perception Schemes holdings until the next reset date and thus the value of theof the creditworthiness of the issuer. Schemes Units. The value of Securities held by the Scheme generally will vary inversely with changes in prevailing interest rates. The Mutual FundThe AMC may, considering the overall level of risk of the portfolio, invest could be exposed to interest rate risk:in lower rated / unrated Securities offering higher yields. (i) due to the time gap in the resetting of the benchmark rates, andThe liquidity of investments made in the Scheme may be restricted bytrading volumes and settlement periods. Different segments of the Indian (ii) to the extent the benchmark index fails to capture interest rate changesfinancial markets have different settlement periods and such periods may appropriately (spread risk): though the basis (i.e. benchmark) getsbe extended significantly by unforeseen circumstances. The Trustee has readjusted on a regular basis, the spread (i.e. markup) over benchmarkthe right, in its sole discretion, to limit Redemptions (including suspending remains constant. This can result in some volatility to the holding periodRedemption) under certain circumstances. There may be temporary return of floating rate instruments.periods when the monies of the Scheme are un-invested and no return is Settlement Risk (counterparty risk): Specific floating rate assets may alsoearned thereon. The inability of the Scheme to make intended Securities be created by swapping a fixed return into a floating rate return. In such apurchases, due to settlement problems, could cause the Scheme to miss swap, there is the risk that the counterparty (who will pay floating ratecertain investment opportunities. By the same token, the inability to sell return and receive fixed rate return) may default;Securities held in the Schemes portfolio due to the absence of a well Liquidity Risk: The market for floating rate Securities is still in itsdeveloped and liquid secondary market for Debt Securities could result, evolutionary stage and therefore may render the market illiquid from timeat times, in potential losses to the Scheme, should there be a subsequent to time, for such Securities that the Scheme is invested in.decline in the value of the Securities held in the Schemes portfolio. Prepayment Risk: The borrower/issuer of security may prepay theThe liquidity and valuation of the Schemes investments due to its holdings receivables prior to their respective due dates. This may result in changeof unlisted Securities may be affected if they have to be sold prior to their in the yield and tenor of the scheme.target date of divestment. Different types of Securities in which the Scheme may invest as given inDebt Securities, which are not quoted on the stock exchanges, are the SID carry different levels and types of risk. Accordingly the Schemesinherently illiquid in nature and carry a larger amount of liquidity risk, in risk may increase or decrease depending upon its investment pattern.comparison to Debt Securities that are listed on the exchanges or offer E.g. corporate bonds carry a higher amount of risk than governmentother exit options to the investor, including a put option. Within the Securities. Further even among corporate bonds, bonds which are ratedregulatory limits, the AMC may choose to invest in unlisted Debt Securities AAA are comparatively less risky than bonds which are AA rated.that offer attractive yields. Investments in the Scheme made in foreign currency by a Unit Holder areWhile Debt Securities that are listed on the stock exchange carry lower subject to the risk of fluctuation in the value of Indian Rupee.liquidity risk, the ability to sell these investments is limited by the overalltrading volume on the stock exchanges. Money market Securities, while Risk Factors Associated with Derivativesfairly liquid, lacks a well-developed secondary market, which may restrict The Scheme may invest in derivative products in accordance with and to thethe selling ability of the Scheme and may lead to the Scheme incurring extent permitted under the Regulations. The use of derivatives requires anlosses till the Security is finally sold. understanding of the underlying instruments and the derivatives themselves.Money market Securities and debt Securities are subject to the risk of an The risk of investments in derivatives includes mispricing or improper valuationissuers inability to meet interest and principal payments on its debt and the inability of derivatives to correlate perfectly with underlying assets,obligations (credit risk). Credit risk or default risk refers to the risk which rates and indices.may arise due to default on the part of the issuer of the fixed income Trading in derivatives carries a high degree of risk although they are tradedsecurity (i.e., will be unable to make timely principal and interest payments at a relatively small amount of margin which provides the possibility ofon the security). Because of this risk debentures are sold at a yield spread great profit or loss in comparison with the principal investment amount.above those offered on treasury securities, which are sovereign obligations The Scheme may find it difficult or impossible to execute derivativeand generally considered to be free of credit risk. Normally, the value of a transactions in certain circumstances. For example, when there arefixed income security will fluctuate depending upon the actual changes in insufficient bids or suspension of trading due to price limits or circuitthe perceived level of credit risk as well as the actual event of default. breakers, the Scheme may face a liquidity issue.These securities may also be subject to price volatility due to factors suchas changes in interest rates, general level of market liquidity and market The option buyers risk is limited to the premium paid, while the risk of anperception of the creditworthiness of the issuer, among others (market option writer is unlimited. However, the gains of an option writer are limitedrisk). The Liquidity Risk refers to the ease at which a security can be sold to the premiums earned. Since in case of the Scheme all option positionsat or near its true value. The primary measure of liquidity risk is the spread will have underlying assets, all losses due to price-movement beyond thebetween the bid price and the offer price quoted by a dealer. Liquidity risk strike price will actually be an opportunity loss.is characteristic of the Indian fixed income market. The Investment The relevant stock exchange may impose restrictions on exercise of optionsManager will endeavour to manage credit risk through in-house credit and may also restrict the exercise of options at certain times in specifiedanalysis. The Scheme may also, but is not obliged to, use various hedging circumstances.products from time to time, as are available and permitted by SEBI, toattempt to reduce the impact of undue market volatility on the Schemes The writer of a put option bears the risk of loss if the value of the underlyingportfolio. There is no guarantee that hedging techniques will achieve the asset declines below the exercise price. The writer of a call option bears adesired result. risk of loss if the value of the underlying asset increases above the exercise price. Investments in index futures face the same risk as investments in aThe investments made by the Scheme are subject to reinvestment risk. portfolio of shares representing an index. The extent of loss is the sameThis risk refers to the interest rate levels at which cash flows received as in the underlying stocks.from the Securities in the Scheme are reinvested. The additional incomefrom reinvestment is the "interest on interest" component. The risk is that The Scheme bears a risk that it may not be able to correctly forecastthe rate at which interim cash flows can be reinvested may be lower than future market trends or the value of assets, indexes or other financial orthat originally assumed. The risk refers to the fall in the rate for economic factors in establishing derivative positions for the Scheme.reinvestment of interim cash flows. The risk of loss in trading futures contracts can be substantial, because ofThe NAV of the Schemes Units, to the extent that the Scheme is invested the low margin deposits required, the extremely high degree of leveragein fixed income Securities, will be affected by changes in the general level involved in futures pricing and the potential high volatility of the futuresof interest rates. When interest rates decline, the value of a portfolio of markets.fixed income Securities can be expected to rise. Conversely, when interest Derivatives products are leveraged instruments and can providerates rise, the value of a portfolio of fixed income Securities can be expected disproportionate gains as well as disproportionate losses to the investor.to decline. Execution of such strategies depends upon the ability of the fund manager toTo the extent the Schemes investments are in floating rate debt identify such opportunities. Identification and execution of the strategies toinstruments or fixed debt instruments swapped for floating rate return, be pursued by the fund manager involve uncertainty and decisions of a fundthey will be affected by interest rate movement (basis risk) - coupon rates manager may not always be profitable. No assurance can be given that the 27
  • 30. fund manager will be able to identify or execute such strategies. The risks loans may rarely exceed R 5,00,000/- per individual.associated with the use of derivatives are different from or possibly greater Average original maturity of the pool: this indicates the original repaymentthan, the risks associated with investing directly in securities and other period and whether the loan tenors are in line with industry averages andtraditional investments. borrowers repayment capacity. To illustrate, in a car pool consisting of 60As and when the Scheme trades in derivative products, there are risk factors month contracts, the original maturity and the residual maturity of the pooland issues concerning the use of derivatives that investors should understand. viz. number of remaining instalments to be paid gives a better idea of the riskDerivatives require the maintenance of adequate controls to monitor the of default of the pool itself. If in a pool of 100 car loans having original maturitytransactions and the embedded market risks that a derivative adds to the of 60 months, more than 70% of the contracts have paid more than 50% ofportfolio. the monthly instalments and if no default has been observed in such contracts,Besides the price of the underlying asset, the volatility, tenor and interest this pool should have a lower probability of default than a similar car loanrates affect the pricing of derivatives. Other risks in using derivatives include pool where 80% of the contracts have not yet paid 5 instalments.but are not limited to: Loan to value ratio ("LTV"): indicates how much of the value of the asset is(a) Credit Risk - this occurs when a counterparty defaults on a transaction financed by borrowers own equity. The lower the LTV, the better it is. This before settlement and, therefore, the Scheme is compelled to negotiate ratio stems from the principle that where the borrowers own contribution of with another counterparty at the then prevailing (possibly unfavourable) the asset cost is high, the chances of default are lower. To illustrate: for a market price, in order to maintain the validity of the hedge. truck costing R 20 lakhs, if the borrower has himself contributed R 10 lakhs and has taken R 10 lakhs as a loan, he is going to have lesser propensity to(b) Market Liquidity Risk - this is where the derivatives cannot be sold default as he would lose an asset worth R 20 lakhs if he defaults in repaying (unwound) at prices that reflect the underlying assets, rates and indices. an instalment. This is as against a borrower who may meet only R 2 lakhs out(c) Model Risk - this is the risk of mis-pricing or improper valuation of of his own equity for a truck costing R 20 lakhs. Between the two scenarios derivatives. given above, as the borrowers own equity is lower in the latter case, it would(d) Basis Risk - this is when the instrument used as a hedge does not match typically have a higher risk of default than the former. the movement in the instrument / underlying asset being hedged. The Average seasoning of the pool: this indicates whether borrowers have already risks may be inter-related also; for e.g. interest rate movements can affect displayed repayment discipline. To illustrate, in the case of a pool of personal equity prices, which could influence specific issuer / industry assets. loans, if a pool of assets consist of borrowers who have already repaid 80% ofRisks associated with Short Selling and Securities Lending the instalments without default, the probability of default is lower than for a pool where only 10% of instalments have been repaid.The risks in lending portfolio Securities, as with other extensions of credit,consist of the failure of another party, in this case the approved intermediary, Default rate distribution: this indicates how much % of the pool and overallto comply with the terms of the agreement entered into between the lender portfolio of the originator is current, how much is in 0-30 DPD (days pastof Securities, i.e. the Scheme, and the approved intermediary. Such failure to due), 30-60 DPD, 60-90 DPD and so on. The rationale here is that, as againstcomply can result in a possible loss of rights in the collateral put up by the 0-30 DPD, the 60-90 DPD is a higher risk category. Unlike in plain vanillaborrower of the Securities, the inability of the approved intermediary to return instruments, in securitisation transactions it is possible to work towards athe Securities deposited by the lender and the possible loss of any corporate target credit rating, which could be much higher than the originators ownbenefits accruing to the lender from the Securities deposited with the approved credit rating.intermediary. The Mutual Fund may not be able to sell such Securities and In the Indian scenario, also, more than 95% of issuances have been AAA orthis can lead to temporary illiquidity. equivalent rated issuances indicating the strength of the underlying assets asRisk Factors Associated with Overseas Investment well as adequacy of credit enhancement.Subject to necessary approvals and within the investment objectives of the Investment exposure of the Fund with reference to securitised debt:Scheme, the Scheme may invest in overseas markets which carry risks related The Scheme will predominantly invest only in those securitisation issuancesto fluctuations in the foreign exchange rates, the nature of the securities market which have AAA or equivalent rating indicating the highest level of safetyof the country, restrictions on repatriation of capital due to exchange controls from credit risk point of view at the time of making an investment. Theand the political environment. Further the repatriation of capital to India may Scheme will not invest in foreign securitised debt.also be hampered by and changes in Regulations or political circumstances. The Scheme may invest in various types of securitization issuances,In addition, country risks would include events such as introduction of including but not limited to asset backed securitisation, mortgage backedextraordinary exchange controls, economic deterioration, bi-lateral conflict securitisation, personal loan backed securitisation, collateralised loanlending to immobilization of overseas financial assets and the prevalent tax obligation / collateralized bond obligation and so on.laws of the respective jurisdiction for the execution of trades or otherwise. The Scheme does not propose to limit its exposure to only one asset classRisk factors associated with Securitised Debts or to have asset class based sub-limits as it will primarily look towards theGenerally available asset classes for securitisation in India: AAA or equivalent rating of the offering. Commercial vehicles The Scheme will conduct an independent due diligence on the cash Auto and two wheeler pools margins, collateralisation, guarantees and other credit enhancements and the portfolio characteristic of the securitisation to ensure that the issuance Mortgage pools (residential housing loans) fits into the overall objective of the investment in high investment grade Personal loan, credit card and other retail loans offerings irrespective of underlying asset class. Corporate loans / receivables Risk Factors specific to investments in securitised papers:In terms of specific risks attached to securitisation, each asset class would Types of securitised debt vary and carry different levels and types of risks.have different underlying risks, however, residential mortgages typically have Credit risk on securitised bonds depends upon the originator and varieslower default rates as an asset class. On the other hand, repossession and depending on whether they are issued with recourse to the originator orsubsequent recovery of commercial vehicles and other auto assets is normally otherwise. Even within securitised debt, AAA or equivalent rated securitisedeasier and better compared to mortgages. Some of the asset classes such as debt offers lesser risk of default than AA rated securitised debt. A structurepersonal loans, credit card receivables etc., being unsecured credits in nature, with recourse will have a lower credit risk than a structure without recourse.may witness higher default rates. As regards corporate loans / receivables, As underlying assets in securitised debt may assume different forms and thedepending upon the nature of the underlying security for the loan or the general types of receivables include auto finance, credit cards, home loans ornature of the receivable the risks would correspondingly fluctuate. However, any such receipts, credit risks relating to these types of receivables dependthe credit enhancement stipulated by rating agencies for such asset class upon various factors including macro economic factors of these industriespools is typically much higher and hence their overall risks are comparable to and economies. Specific factors like nature and adequacy of propertyother AAA or equivalent rated asset classes. mortgaged against these borrowings, nature of loan agreement / mortgageSome of the factors, which are typically analyzed for any pool, are as follows: deed in case of home loan, adequacy of documentation in case of auto financeSize of the loan: this generally indicates the kind of assets financed with loans. and home loans, capacity of borrower to meet its obligation on borrowings inAlso indicates whether there is excessive reliance on very small ticket size, case of credit cards and the intention of the borrower influence the risks relatingwhich may result in difficult and costly recoveries. To illustrate, the ticket size to the asset borrowings underlying the securitised debt.of housing loans is generally higher than that of personal loans. Hence in the Changes in market interest rates and pre-payments may not change theconstruction of a housing loan asset pool for say R 1,00,00,000/- it may be absolute amount of receivables for the investors, but may have an impact oneasier to construct a pool with just 10 housing loans of R 10,00,000/- each the reinvestment of the periodic cash flows that the investor receives in therather than to construct a pool of personal loans as the ticket size of personal securitised paper. 28
  • 31. Limited Liquidity & Price Risk: may be restricted by trading volumes and settlement periods. This may impactPresently, the secondary market for securitised papers is not very liquid. There the ability of the Unit Holders to redeem their Units. In view of this, the Trusteeis no assurance that a deep secondary market will develop for such securities. has the right, in its sole discretion to limit Redemptions (including suspendingThis could limit the ability of the Fund to resell them. Even if a secondary Redemption) under certain circumstances. Settlement periods may bemarket develops and sales were to take place, these secondary transactions extended significantly by unforeseen circumstances. The inability of themay be at a discount to the initial issue price due to changes in the interest Scheme to make intended Securities purchases, due to settlement problems,rate structure. could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell Securities held in the Schemes portfolio could result, atRisks due to possible prepayments: Weighted Tenor / Yield: times, in potential losses to the Scheme, should there be a subsequent declineAsset securitisation is a process whereby commercial or consumer credits are in the value of Securities held in the Schemes portfolio.packaged and sold in the form of financial instruments. Full prepayment of Investments in equity and equity related Securities involve a degree of riskunderlying loan contract may arise under any of the following circumstances: and investors should not invest in the Scheme unless they can afford to take obligor pays the receivable due from him at any time prior to the scheduled the risk of losing their investment. maturity date of that receivable; or The liquidity and valuation of the Schemes investments due to its holdings of receivable is required to be repurchased by the seller consequent to its unlisted Securities may be affected if they have to be sold prior to the target inability to rectify a material misrepresentation with respect to that date for disinvestment. receivable; or Securities which are not quoted on the stock exchanges are inherently illiquid the servicer recognizing a contract as a defaulted contract and hence in nature and carry a larger liquidity risk in comparison with Securities that repossessing the underlying asset and selling the same. are listed on the exchanges or offer other exit options to the investors, including In the event of prepayments, investors may be exposed to changes in put options. The AMC may choose to invest in unlisted Securities that offer tenor and yield. attractive yields within the regulatory limit. This may however increase the risk of the portfolio.Bankruptcy of the originator or seller: Risks in the strategies of the JPMorgan India Short Term Income FundIf the originator becomes subject to bankruptcy proceedings and the court inthe bankruptcy proceedings concludes that the sale from originator to Trust Risks associated with investing in Bondswas not a sale then the Fund could experience losses or delays in the payments The AMC may choose to invest in unlisted Debt Securities that offerdue. All possible care is generally taken in structuring the transaction so as to attractive yields within regulatory limits. This may however increase theminimize the risk of the sale to Trust not being construed as a "True Sale". risk of the portfolio. Additionally, the liquidity and valuation of the SchemesLegal opinion is normally obtained to the effect that the assignment of investment due to its holdings of the unlisted Securities may be affected ifReceivables to Trust in trust for and for the benefit of the investors, as envisaged they have to be sold prior to the target date of investment.herein, would constitute a true sale. Risks associated with investing in DerivativesBankruptcy of the investors agent: The Mutual Fund may use derivatives in connection with its investmentIf Investors agent becomes subject to bankruptcy proceedings and the court strategies.in the bankruptcy proceedings concludes that the recourse of Investors Agent The risks associated with the use of derivatives are different from orto the assets / receivables is not in its capacity as agent / Trustee but in its possibly greater than, the risks associated with investing directly inpersonal capacity, then an Investor could experience losses or delays in the Securities and other traditional investments. Derivatives may be riskierpayments due under the swap agreement. All possible care is normally taken than other types of investments because they may be more sensitive toin structuring the transaction and drafting the underlying documents so as to changes in economic or market conditions than other types of investmentsprovide that the assets / receivables if and when held by Investors Agent is and could result in losses that significantly exceed a funds originalheld as agent and in Trust for the Investors and shall not form part of the investment. Certain derivatives may give rise to a form of leverage. As apersonal assets of Investors Agent. Legal opinion is normally obtained to the result, a fund may be more volatile than if the fund had not been leveragedeffect that the Investors Agents recourse to assets / receivables is restricted because the leverage tends to exaggerate the effect of any increase orin its capacity as agent and trustee and not in its personal capacity. decrease in the value of the funds portfolio Securities.Credit Rating of the Transaction / Certificate: Risks associated with Overseas InvestmentThe credit rating is not a recommendation to purchase, hold or sell the Currency Risk: The foreign securities are issued and traded in foreignCertificate in as much as the ratings do not comment on the market price of currencies. As a result, their values may be affected by changes in thethe Certificate or its suitability to a particular investor. There is no assurance exchange rates between foreign currencies and the Indian Rupees as wellby the rating agency either that the rating will remain at the same level for as between currencies of countries other than India. Restrictions onany given period of time or that the rating will not be lowered or withdrawn currency trading that may be imposed by developing market countriesentirely by the rating agency. will have an adverse effect on the value of the securities of companiesRisk of Co-mingling: that trade or operate in such countries.The Servicers normally deposit all payments received from the Obligors into Risks associated with investing in Government Securitiesthe Collection Account. However, there could be a time gap between collection Market Liquidity risk with fixed rate Government Securities: Even thoughby a Servicer and depositing the same into the Collection account especially the Government Securities market is more liquid compared to other debtconsidering that some of the collections may be in the form of cash. In this instruments, on certain occasions, there could be difficulties in transactinginterim period, collections from the Loan Agreements may not be segregated in the market due to extreme volatility leading to constriction in marketfrom other funds of the Servicer. If the Servicer fails to remit such funds, volumes. Also, liquidity of the Scheme may suffer in case the relevantincluding due to his bankruptcy or failure, due to Investors, the Investors may guidelines issued by RBI undergo any adverse changes.be exposed to a potential loss. Due care is normally taken to ensure that the Interest Rate risk associated with Government Securities: WhileServicer enjoys highest credit rating on stand alone basis to minimize Co- Government Securities carry minimal credit risk since they are issued bymingling risk. the Government of India, they do carry price risk depending upon theScheme specific risk factors for JPMorgan India Equity Fund, general level of interest rates prevailing from time to time. Generally, whenJPMorgan India Smaller Companies Fund, JPMorgan India Tax interest rates rise, prices of fixed income Securities fall and when interestAdvantage Fund, JPMorgan JF Greater China Equity Off-shore Fund rates decline, the prices of fixed income Securities increase. The extent ofand JPMorgan Emerging Europe, Middle East & Africa Equity Off-shore fall or rise in the prices is a function of the coupon rate, days to maturityFund. and the increase or decrease in the level of interest rates. The price-risk is not unique to Government Securities. It exists for all fixed income securities.Schemes investing in Equities: Therefore, their prices tend to be influenced more by movement in interestThe value of the Schemes investments may be affected by factors affecting rates in the financial system than by changes in the Governments Creditthe securities markets such as price and volume volatility in the capital markets, Rating. By contrast, in the case of corporate or institutional fixed incomeinterest rates, currency exchange rates, changes in law/policies of the Securities, such as Bonds or debentures, prices are influenced by theirgovernment, taxation laws and political, economic or other developments respective credit standing as well as the general level of interest rates.which may have an adverse bearing on individual Securities, a specific sectoror all sectors. Consequently, the NAV of the Units of the Scheme may be Risks associated with floating rate Government Securities: Floating rateaffected. securities issued by the Government (coupon linked to Treasury bill benchmark or an inflation linked bond) have the least sensitivity to interestEquity Securities and equity-related Securities are volatile and prone to price rate movements compared to other Securities. Some of these Securitiesfluctuations on a daily basis. The liquidity of investments made by the Scheme 29
  • 32. are already in issue. These Securities can play an important role in control over the economy and may take actions having sudden and minimizing interest rate risk in a portfolio. widespread effects. There is a possibility of nationalisation,Scheme Specific Risk Factors for JPMorgan JF Greater China Equity expropriation or confiscatory taxation, foreign exchange control,Off-shore Fund and JPMorgan Emerging Europe, Middle East & Africa political changes, government regulation, social instability or diplomatic developments which could affect adversely the economiesEquity Off-shore Fund of emerging markets or the value of the underlying funds investments,Risk factors for a Fund of Funds Scheme and the risks of investing in countries with smaller capital markets, The Scheme will be investing primarily in shares / units of the underlying such as limited liquidity, price volatility, restrictions on foreign fund, which in turn invests in companies incorporated or which have their investment and repatriation of capital, and the risks associated with registered office located in or derive the predominant part of their emerging economies, including high inflation and interest rates and economic activity from, a country in the Greater China region for JPMorgan political and social uncertainties. Investors should be aware that the JF Greater China Equity Off-shore Fund / Emerging Europe, Middle East & investments of the underlying fund being primarily in the emerging African countries for JPMorgan Emerging Europe, Middle East & Africa markets, its stocks can be negatively impacted by low liquidity, poor Equity Off-shore Fund. Hence the Schemes performance may depend upon transparency and greater financial risks. However, the volatility of the the performance of the underlying fund. Any change in the investment underlying fund is limited by its diversification across a large number policy or the fundamental attributes of the underlying fund will affect the of companies and industry groups. performance of the Scheme. Investments in products relating to emerging markets may also become Investments in the underlying fund, which is an equity fund, will have all illiquid which may constrain the ability of the investment manager to the risks associated with investments in equity and the offshore markets. the underlying fund to realize some or all of the portfolio. The portfolio disclosure of the Scheme will be largely limited to the (vii) Legal, tax and regulatory risk - Legal, tax and regulatory changes could investments made by the Scheme. occur during the term of the underlying fund which may adversely In addition to the recurring expenses of the Scheme, the investor shall affect it. If any of the laws and regulations currently in effect should also bear the applicable expenses of the Underlying fund. Therefore, the change or any new laws or regulations should be enacted, the legal returns that the investor may receive shall be substantially impacted or requirements to which the underlying fund and the investors may be may, at times, be lower than the returns that an investor, directly investing subject could differ materially from current requirements and may in the Underlying fund could obtain. materially and adversely affect the underlying fund and the investors. Legislation could be imposed retrospectively (as a result the underlyingRisk Factors for the Underlying Fund fund could become subject to additional taxation that was not The performance of the underlying fund will be affected by a number of contemplated either when investments were made, valued or disposed risk factors, including the following, which have also been disclosed by of) or may be issued in the form of internal regulations not generally the underlying fund in its prospectus filed with the appropriate regulatory available to the public. authorities: (viii) Settlement Risks (i) Political, economic and social risks - All financial markets may at times The securities markets in some countries lack the liquidity, be adversely affected by changes in political, economic and social efficiency and regulatory and supervisory controls of more conditions. Economic and / or political instability could lead to legal, developed markets. fiscal and regulatory changes or the reversal of legal / fiscal / regulatory / market reforms. Lack of liquidity may adversely affect the ease of disposal of assets. The absence of reliable pricing information in a particular security (ii) Market risk - The underlying funds investments are subject to the held by the underlying fund may make it difficult to assess reliably risks inherent in all investments in Securities i.e. the value of holdings the market value of assets. may fall as well as rise. As the underlying fund invests primarily in equities, investors are exposed to stock market fluctuations and the The share register of companies in which the underlying fund financial performance of the companies held in the underlying funds invests in may not be properly maintained and the ownership or portfolio. In addition, the underlying fund may be subject to investment interest may not be (or remain) fully protected. holding limits imposed on investors by the markets in which the Registration of Securities may be subject to delay and during the underlying fund invests. period of delay it may be difficult to prove beneficial ownership of (iii) Currency risk - The assets in which the underlying fund is invested and the Securities. the income from the assets will or may be quoted in currencies which The provision for custody of assets may be less developed than in are different from the underlying funds base currency. The other more mature markets and thus provides an additional level performance of the underlying fund will therefore be affected by of risk for the fund. movements in the exchange rate between the currencies in which the Settlement procedures may be less developed and still be in assets are held and the underlying funds base currency and hence physical as well as in dematerialised form. there can be the prospect of additional loss or the prospect of additional gain to the investors greater than the usual risks of investment. The (ix) Derivatives Risk - The underlying fund may use derivatives in performance of the underlying fund may also be affected by changes connection with its investment strategies. Derivative products are in exchange control regulations. leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies (iv) Hedging risk - The investment manager to the underlying fund is depends upon the ability of the investment manager of the underlying permitted, but not obliged, to use hedging techniques to attempt to fund to identify such opportunities. Identification and execution of offset market and currency risks. There is no guarantee that hedging the strategies to be pursued by the investment manager of the techniques will achieve the desired result. underlying fund involve uncertainty and decision of the investment (v) Diversification risk - Although their portfolios are well diversified in manager of the underlying fund may not always be profitable. No terms of the number of holdings, investors should be aware that the assurance can be given that the investment manager of the underlying fund is likely to be more volatile than a broad-based fund, such as a fund will be able to identify or execute such strategies. global equity fund, as they are more susceptible to fluctuations in The risks associated with the use of derivatives are different from or value resulting from adverse conditions in the region (viz. Greater possibly greater than, the risks associated with investing directly in China for JPMorgan JF Greater China Equity Off-shore Fund / Eastern Securities and other traditional investments. Derivatives may be riskier Europe, Middle East and Africa for JPMorgan Emerging Europe, Middle than other types of investments because they may be more sensitive East & Africa Equity Off-shore Fund) in which it invests. to changes in economic or market conditions than other types of (vi) Emerging markets risk - Accounting, auditing and financial reporting investments and could result in losses that significantly exceed a funds standards in some of the emerging markets in which some of the original investment. Certain derivatives may give rise to a form of underlying funds assets may be invested may be less rigorous than leverage. As a result, a fund may be more volatile than if the fund had international standards. As a result, certain material disclosures may not been leveraged because the leverage tends to exaggerate the effect not be made. of any increase or decrease in the value of the funds portfolio Securities. Investment in emerging markets involves special considerations and risks. Many emerging market countries are still in the early stages of Derivatives are also subject to the risk that changes in the value of a modern development and are subject to abrupt and unexpected derivative may not correlate perfectly with the underlying asset, rate change. In many cases, governments retain a high degree of direct or index. The use of derivatives for hedging or risk management 30
  • 33. purposes or to increase income or gain may not be successful, resulting suspended when the mutual funds combined AUM in overseas schemes in losses to the underlying fund, and the cost of such strategies may reaches the cap of US$ 300 mn. A notice will be issued for such reduce the funds returns and increase the funds potential for loss. intimation at all our ISC offices, AMC branches and on the website (x) Investment in Russia*- The underlying Fund may invest in securities (www.jpmorganmf.com). listed on the Russian Trading System (RTS) Stock Exchange and on the – Allotment would be done on a pro-rata basis if the US$ 300 mn cap is Moscow Interbank Currency Exchange in Russia. Investments in Russia breached. are currently subject to certain heightened risks with regard to the eg: ownership and custody of securities. In Russia shareholdings are evidenced by entries in the books of a company or its registrar (which I) Day T (opening AUM) - US$ 270 mn is the overseas AUM of the is neither an agent nor responsible to the Custodian). No certificates mutual fund, Incoming cashflows on Day T - US$ 30 mn representing shareholdings in Russian companies will be held by the – Allotment would be done for the entire amount. Custodian or any of its local sub-custodians or in an effective central II) Day T (opening AUM) - US$ 270 mn is the overseas AUM of the depository system. As a result of this system and the lack of effective mutual fund, Incoming cashflows on Day T - US$ 60 mn state regulation and enforcement, the underlying Fund could lose its registration and ownership of Russian securities through fraud, – Allotment would be done only for US$ 30 mn on a pro rata negligence or even mere oversight. However, in recognition of such basis. risks, the Russian sub-custodian of the Custodian is following increased – On this day a notice would be sent out to all ISC offices, AMC "due diligence" procedures. The sub-custodian has entered into branches and on the website (www.jpmorganmf.com) stating agreements with Russian company registrars and will only permit that further sales are suspended with immediate effect, in case investment in those companies that have adequate registrar further overseas fund quota from SEBI has not been obtained. procedures in place. In addition, the settlement risk is minimised as If the cap of US$ 300 mn is reached, refunds would be settled on a T+3 the sub-custodian will not release cash until registrar extracts have basis been received and checked. In addition, Russian debt securities have an increased custodial risk associated with them as such securities The above process will not have any impact on the redemption process. are, in accordance with market practice, held in custody with Russian institutions which may not have adequate insurance coverage. NAME OF THE TRUSTEE COMPANY JPMorgan Mutual Fund India Private Limited *This pertains only to JPMorgan Emerging Europe, Middle East & Africa Equity Off-shore Fund. Registered Office: (xi) Investing in Equities - Equity Securities and equity-related Securities J. P. Morgan Tower, Off C.S.T. Road, Kalina, are volatile and prone to price fluctuations on a daily basis. The liquidity Santacruz - East, Mumbai - 400 098. of investments made by the Underlying fund may be restricted by trading volumes and settlement periods. This may impact the ability TAXATION ON INVESTING IN MUTUAL FUNDS of the Unit Holders to redeem their Units. In view of this, the Trustee Investor are advised to refer to the details in the Statement of Additional has the right, in its sole discretion to limit Redemptions (including Information and also independently refer to their tax advisor. suspending Redemption) under certain circumstances. Settlement periods may be extended significantly by unforeseen circumstances. FOR INVESTOR GRIEVANCES PLEASE CONTACT The inability of the Underlying fund to make intended Securities Investors can enquire about NAVs, unit holdings, valuation, dividends, etc. or purchases, due to settlement problems, could cause the Underlying lodge any service request at the toll-free number "1-800-22-5763". In order to fund to miss certain investment opportunities. Similarly, the inability protect confidentiality of information, the service representatives may require to sell Securities held in the Underlying funds portfolio could result, personal information of the investor for verification of his identity. at times, in potential losses to the Scheme, should there be a Any complaints should be addressed to Mr. Anutosh Bose, who has been subsequent decline in the value of Securities held in the Underlying appointed as the investor relations officer. He can be contacted at: funds portfolio. Address : J.P. Morgan Tower, Off C.S.T. Road, Kalina, In view of the above, investment in the Scheme should be regarded as Santacruz - (E), Mumbai 400 098 long term in nature. The Scheme is, therefore, only suitable for investors who can afford the risks involved. Toll-free No. : 1-800-22-5763 (JPMF) (MTNL/BSNL lines)Risks associated with investing in foreign Securities Fax : +91 22 6157 4170 Subject to necessary approvals and within the investment objectives of the Scheme, the Scheme will be investing in the overseas markets which E-mail : india.investors@jpmorgan.com carry risks related to fluctuations in the foreign exchange rates, the nature Registrar and Transfer Agent: of the securities market of the country, restrictions on repatriation of capital Deutsche Investor Services Private Limited due to exchange controls and the political environment. Further the Address : Nirlon Knowledge Park, 4th Floor, Block 1, repatriation of capital to India may also be hampered by changes in the Western Express Highway, Goregaon (East), Regulations or political circumstances. Mumbai - 400 063, Maharashtra - India. In addition, country risks would include events such as introduction of Telephone : 91-22 6670 6000 extraordinary exchange controls, economic deterioration, bi-lateral conflict leading to immobilisation of overseas financial assets and the prevalent Fax : 91-22 - 6670 6901 tax laws of the respective jurisdictions for the execution of trades or E-mail : investor.jpm@db.com; distributor.jpm@db.com otherwise. Subject to the other terms of the SID, all applicants applying for up to UNIT HOLDERS INFORMATION 5000 Units (Five Thousand only) shall be given their full allotment. Account Statements will be sent by ordinary post/courier/electronic mail to However, keeping in mind the investment restrictions in foreign Securities each unit holder, stating the transaction number of units within 10 working currently applicable to mutual funds vide SEBIs circulars SEBI/IMD/CIR days from allotment date. No. 7/104753/07 dated September 26, 2007 and SEBI/IMD/CIR No.2/ The Scheme annual report will be prepared at each financial year end (31 1222577/08 dated April 8, 2008, if the overall limit for the Mutual Fund in March). An abridged summary of the scheme annual report shall be mailed to overseas investments of up to USD 300 million has been reached, unit holders not later than four months from the date of closure of the relevant applicants will receive a pro-rata allotment as calculated by the AMC. In accounting year (March 31st). such an event, application monies relating to the unused portion of the Half yearly portfolio details (31 March and 30 September), in the prescribed investors original allotment request may be refunded to investors. The format, shall also be disclosed either by publishing it in the newspaper or by arrangement is subject to SEBI regulations and approvals. The process for sending it to the unit holder within one month from the end of each half year monitoring the US$ 300 mn limit for overseas investments shall be as end and the same shall also be displayed on the website : follows: www.jpmorganmf.com. – The cap of US$ 300 mn would be monitored at the mutual fund level Please refer to the Scheme Information Document and Statement of and not the scheme level. Additional Information for any further details. – If 90% of the limit is reached, intimation to all investors and empanelled distributors would be made informing them that further sales will be 31
  • 34. INSTRUCTIONS & NOTES All instructions & notes are subject to SEBI & AMFI guidelines, as amended from time to time.1. GENERAL of installments in a rolling 12 month period or in a financial year (to be referred as(a) The application form should be completed in ENGLISH in BLOCK LETTERS only. ‘Micro SIP’) shall be exempt from the requirement of PAN as a proof of identification. The exemption shall be applicable to investments by individuals, NRIs, Minor and(b) Please read the Key Information Memorandum and the Scheme Information Sole Proprietary Firm. However, PIOs, HUFs, Partnership Firms, Companies, Document containing the terms of offer carefully before investing. In the Scheme Societies, Trusts and any other category will not be eligible for such exemption. Information Document your attention is particularly drawn to the risk factors of investing in the scheme and also the sections "Who cannot invest", "Important Any one of the following photo identification documents can be submitted along note on anti-money laundering, KYC & investor protection" and "How to apply". with these SIP applications as proof of identification in lieu of PAN: 1. Voter Identity Card(c) Please strike out any section that is not applicable. Any cancellation and modification on any of the mandatory information should be countersigned. 2. Driving License 3. Government / Defense identification card(d) Please refer to the checklist at the end of these notes to ensure that the requisite 4. Passport details and documents have been provided in order to avoid unnecessary delays and / or rejection of your application. 5. Photo Ration Card 6. Photo Debit Card (Credit card not included because it may not be backed up(e) The original Power of Attorney or a duly notarised copy of the Power of Attorney by a bank account) shall be required to be submitted where transactions are made under a Power of Attorney. 7. Employee ID cards issued by companies registered with Registrar of Companies 8. Photo Identification issued by Bank Managers of Scheduled Commercial Banks(f) The following documents are to be submitted by a company, body corporate, eligible / Gazetted Officer / Elected Representatives to the Legislative Assembly / institutions, society, trusts, partnership or other eligible non-individual applicants Parliament who apply for units in this scheme: 9. ID card issued to employees of Scheduled Commercial / State / District Co- 1. Certified copy of resolution or authority to make the application. operative Banks 2. Certified copy of the Memorandum and Articles of Association and / or bye- 10. Senior Citizen / Freedom Fighter ID card issued by Government laws and / or Trust Deed and / or Partnership Deed and certificate of 11. Cards issued by Universities / deemed Universities or institutes under statutes registration or any other document that may be required by the AMC as the like ICAI, ICWA, ICSI case may be. 12. Permanent Retirement Account No (PRAN) card issued to New Pension System 3. For Trusts / fund, certified true copy of the resolution from the Trustee(s) (NPS) subscribers by CRA (NSDL) authorising such transaction. 13. Any other photo ID card issued by Central Government / State Governments / 4. The application should be signed under their official designation. Municipal authorities / Government organizations like ESIC / EPFO(g) The dates for Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) In addition to the photo identification documents prescribed above, the are the same as that of Systematic Investment Plan (SIP). investor shall be required to provide a copy of the proof of address which(h) Investors should ensure to write the word DIRECT in the column for Broker Code is self attested and attested by the ARN holder. in their applications for purchases/additional purchases / switches in cases where (f) Know Your Customer (KYC): The need to "Know Your Customer" is vital for the such applications are not routed through any distributor / agent/broker. prevention of money laundering. The AMC may seek information or obtain and(i) As per the ELSS, Units issued under JPMorgan India Tax Advantage Fund can be retain documentation used to establish identity. It may re-verify identity and obtain assigned or pledged only after the lock-in period of 3 (three) years has elapsed any missing or additional information for this purpose. from their date of allotments. With effect from January 1, 2011 all Mutual Fund investors are required to comply(j) Redemption / Switch-out of Units including units issued under dividend with Know Your Client (KYC) norms under the Prevention of Money Laundering reinvestment option from JPMorgan India Tax Advantage Fund can be made only Act, 2002 (PMLA). Please refer to our website (www.jpmorganmf.com) or AMFIs after a lock-in period of 3 (three) years has expired from the date of allotment of website (www.amfiindia.com) for details. Units proposed to be redeemed. The AMC, under powers delegated by the Trustee, shall have absolute discretion to(k) In case of JPMorgan India Tax Advantage Fund, as per the ELSS, in the event of the reject any application, prevent further transactions by a Unit Holder, delay processing death of the Assessee, the nominee or legal heir as the case may be shall be able redemption as per applicable laws or regulations if. to withdraw the investment only after the completion of 1 (one) year from the date (i) after due diligence, the investor / Unit Holder / a person making the payment of allotment of the Units to the Assessee. Accordingly, transfer of Units (allotted on behalf of the investor does not fulfil the requirements of the "Know Your to Assessees as defined under the ELSS) to nominees as mentioned above will be Customer" as determined by the AMC or the AMC believes that the transaction carried out only after the completion of 1 (one) year from the date of its allotment. is suspicious in nature as regards money laundering. The restriction of 1 (one) year shall not apply to units allotted to investors other (ii) the AMC determines in its sole discretion that the application does not or will than Assesses. not comply with any applicable laws or regulations. In this regard the AMC reserves the right to reject any application and effect a2. APPLICANT INFORMATION mandatory Redemption of Units allotted at any time prior to the expiry of 30(a) Name and address shall be given in full without any abbreviations. Please provide Business Days from the date of the application. a copy of the address proof. If the payment for Purchase of Units are made by a third party (e.g. a power of(b) The guardian who opens the folio on behalf of the minor should either be a natural attorney holder, a financing agency, a relative, etc.), the Unit Holder may be required guardian (i.e. father or mother) or a court appointed legal guardian. Name of the to give such details of such transaction so as to satisfy the AMC of the source and/ guardian must be mentioned if the investments are being made on behalf of a or consideration underlying the transaction. minor. Date of birth is mandatory for minors. The minor shall be the first and the (g) For NRIs / NREs, please provide a copy of the cheque leaf or FIRC certificate. sole holder in an account. There shall not be any joint accounts with minor as the first or joint holder. There shall be a freeze on the operation of the account by the 3. BANK ACCOUNT DETAILS guardian on the day the minor attains the age of majority and no transactions As per SEBI guidelines, it is mandatory for the Sole / First applicant to mention his / shall be permitted till satisfactory documents (as per the procedure listed out in her bank account number in the application form. Applications received without the the SID) for effecting change in status are received. relevant bank account number will be deemed to be incomplete and will be rejected.(c) Name of the guardian must be mentioned if the investments are being made on The AMC and the R&T (the Registrar and Transfer Agent) reserves the right to hold any behalf of a minor. Date of birth is mandatory for minors. redemption proceeds in case the requisite details are not submitted. The AMC may ask(d) Name of the contact person and e-mail and telephone number should be mentioned for a copy of a cancelled cheque to verify these details. in case of investments by a company, body corporate, trust, partnership, society, The AMC currently has a direct credit facility with the following banks (mentioned here FII and other eligible non-individual applicants. Any change in the status of any below in alphabetical order): authorized signatory should be promptly intimated to the AMC. Incomplete ABN AMRO, Axis Bank, Citibank NA, Deutsche Bank, HDFC Bank, HSBC, ICICI Bank, IDBI application forms are liable to be rejected. Bank, Kotak Bank and Standard Chartered.(e) Systematic Investment Plans (SIPs) upto R 50,000/- exempt from Permanent The AMC will provide direct credit facility with additional banks as may be available Account Number (PAN) from time to time to the investors. Please contact the AMC and R&T for further details. In compliance with SEBI letter no. MRD/DoP/PAN/PM/166999/2009, dated June In case you do not wish to receive redemption proceeds by direct credit facility, please 19, 2009 issued to AMFI and subsequent guidelines issued by AMFI in this regard, tick the appropriate option in the application form. effective August 1, 2009, SIPs upto R 50,000/- per year per investor i.e. aggregate IFSC code is necessary for electronic payouts. 32
  • 35. 4. INVESTMENT DETAILS pre-funded instrument issued by bank against cash for less than R 50,000 thenApplicants should indicate the Option (Dividend/Growth) for which the application is the investor is required to submit a Certificate* (in original) obtained from themade. In case applicants wish to opt for both the options, separate application forms bank giving name, address and PAN (if available) of the person who has requestedwill have to be completed for each option. If no indication is given for the investment, for the payment instrument.the default option will be the growth option. Further, if no indication is given for payout *The said letter/Certificate should be duly certified by the bank manager withor reinvestment under dividend option, the default option will be the dividend his / her full signature, name, bank seal and contact number. The AMC / Mutualreinvestment option. Fund / R&TA will check that the name mentioned in the Certificate matches with the first named investor.5. MODE OF PAYMENT D) If payment is made by RTGS, NEFT, ECS, bank transfer, etc., a copy of the instructionApplications can be submitted at the designated collection centres as appended in the to the bank stating the account number debited must accompany the purchaseKIM. Applications can be submitted at the Official Points of Acceptance of the AMC / R application.& T. Only one cheque/DD will be accepted per application form for fresh and additional E) Investors transacting through (i) MFSS/ BSE StAR MF Platform under the electronicpurchases. The Mutual Fund and its agents / representatives are not obliged to represent order collection system for schemes which are unlisted and (ii) Stock Exchange(s)dishonoured cheques or inform the investor/investors agent about such cheques. For for the listed schemes; will have to comply with norms / rules as prescribed byinvestments made through NRE/NRO account, a cheque along with a photocopy of the Stock Exchange(s).cheque and the application form must be submitted to a JPMorgan AMC branch. The above broadly covers the various modes of payment for mutual fund subscriptions.Payment can be made by rupee draft purchased abroad, payable at locations where The above list is not a complete list and is only indicative in nature and not exhaustive.the application is submitted to a JPMorgan AMC branch / collection centre. Any other method of payment, as introduced by the Mutual Fund, will also be covered(I) Safe Mode of Writing Cheque under these provisions.In order to prevent frauds and misuse of payment instruments, the investors may 6. FAX INSTRUCTIONSmake the payment instrument (i.e. cheque, demand draft, pay order, etc.) favouringeither of the following : *Initial Purchases, Additional Purchases and Redemptions may be communicated through facsimile.1. "JPMorgan Scheme A/c" In connection with the agreement by the AMC / Mutual Fund / Registrar to accept from2. "JPMorgan Scheme A/c First Investor Name" the Unit Holder / Investor, from time to time instructions by facsimile (Facsimile3. "JPMorgan Scheme A/c Permanent Account Number" Instructions), the Unit Holder / Investor confirms that:(II) Third Party Payments 1. He/she acknowledges that Facsimile Instructions are not a secure means ofNo third party payments shall be accepted in any of the schemes of JPMorgan Mutual communication, and is aware of the risk involved, and that the request to the AMCFund. However, under following exceptional circumstances the third party cheques / Mutual Fund / Registrar to accept such Facsimile Instructions is for the Unitwill be accepted. Holders / Investors convenience.a) Payment by Parents/Grand-Parents/related persons on behalf of a minor in 2. The AMC/ Mutual Fund / Registrar is authorised to act on any Facsimile Instruction consideration of natural love and affection or as gift for a value not exceeding R which the AMC / Mutual Fund / Registrar in its sole discretion believes is transmitted 50,000/- (each regular purchase or per SIP installment) from the Unit Holder / Investor and, provided that the AMC exercises due care inb) Payment by Employer on behalf of employee through Payroll deductions. carrying out its internal verification procedures, the AMC / Mutual Fund / Registrarc) Custodian on behalf of an FII or a client. shall not be liable for acting in good faith on such Facsimile Instructions which are transmitted from unauthorised persons.Investors submitting their applications in the abovementioned exceptionalcircumstances are required to provide the following documents without which the 3. Any transaction entered into by the AMC/ Mutual Fund / Registrar pursuant to aapplications for subscription of units will be rejected/ not processed/ refunded: Facsimile Instruction in good faith and in the absence of gross negligence, default or fraud shall be binding upon the Unit Holder / Investor whether made with ora) Mandatory KYC for Investor and the person making the payment i.e. third party. without his/her authority, knowledge or consent. Copy of the KYC Acknowledgement letter of both; the investor and the person making the payment, should be attached along with the application form. 4. The Unit Holder / Investor agrees that security procedures adopted by the AMC / Mutual Fund / Registrar may include signature verification, telephone callbacksb) Declaration from the Investor and the person making the payment. Declaration or a combination of the same. Callbacks may be recorded by tape recording device by the person making the payment should give details of the bank account from and the Unit Holder / Investor consents to such recording and agrees to co-operate which the payment is made and the relationship with the investor. with the AMC / Mutual Fund / Registrar to enable confirmation of such Facsimile(III) Source of Funds Instruction requests. The Unit Holder / Investor further accept that the FacsimileA) If the payment is made by cheque: An investor at the time of his/her purchase Instruction shall not be considered until time stamped appropriately as a valid must provide the details of his pay-in bank account (i.e. account from which a transaction request in the Scheme in line with the SEBI Regulations. In case of subscription payment is made) and his pay-out bank account (i.e. account into Initial Purchases, the transaction shall be processed and units allotted on the basis which redemption / dividend proceeds are to be paid). The verification of third of the time stamped Facsimile Instruction, provided all requisite physical / original party cheque will be made on the basis of either matching the paying - in bank documents (subject to the same being in order) are submitted to the AMC / Mutual account details with the pay-out bank details or by matching the bank account Fund / Registrar by 2.30 pm on the same day in case of JPMorgan India Liquid number/ name of the first applicant/ signature of the first applicant with the name Fund and 5.30 pm on the same day in case of JPMorgan India Treasury Fund, of the account holder/ account number/ signature on the cheque. If the name is JPMorgan India Active Bond Fund and JPMorgan India Short Term Income Fund. It not pre-printed on the cheque or the signature on the cheque does not match, shall be the sole obligation of the Investor to ensure that the requisite physical / then the first named applicant should submit any one of the following documents: original documents (subject to the same being in order) are submitted to the AMC / a) copy of the bank pass book or account statement from the bank having the Mutual Fund / Registrar by 2.30/5.30 pm (as mentioned above) on the same day, name, account number and address of the investor. (Investors should also failing which the application / transaction will be rejected. The AMC / Mutual Fund bring the original documents along with the documents mentioned. The copy reserves the right to reject the application in case the original varies from the of such documents will be verified with the original documents to the Facsimile Instruction received. satisfaction of the AMC/ R&TA. The original documents will be returned across 5. The AMC/ Mutual Fund / Registrar shall not be liable and the Unit Holder / Investor the counter to the investor after due verification.) shall indemnify the AMC / Mutual Fund / Registrar and hold the AMC / Mutual b) a letter* from the bank on its letterhead certifying that the investor maintains Fund / Registrar harmless against any legal action, procedure, claim, loss, damages an account with them specifying the account number, type of account, branch, or costs which may be brought against the AMC / Mutual Fund / Registrar or the MICR code of the branch & the IFSC code (where applicable). suffered or incurred by the AMC / Mutual Fund / Registrar and which shall have arisen either directly or indirectly out of or in connection with the AMC / Mutual In case an investor has multiple accounts, investors are requested to register them Fund / Registrar accepting Facsimile Instructions and acting thereon, whether or with the AMC. Pay-in from such registered single or multiple accounts can be not such Facsimile Instructions are confirmed in writing by the Unit Holder / Investor treated as 1st party payments. The process to be followed for registration of multiple and whether or not such Facsimile Instructions in fact originate from the Unit bank accounts is detailed in the Multiple Bank Accounts Registration Form. Holder / Investor.B) If the payment is made with pre-funded instruments such as Pay Order, Demand *Initial Purchases, through Facsimile Instructions will be accepted only in the Draft, Bankers cheque, etc. (by debiting a bank account), a Certificate* (in original) JPMorgan India Liquid Fund, JPMorgan India Treasury Fund, JPMorgan India Active from the Issuing banker must accompany the purchase application, stating the Bond Fund and the JPMorgan India Short Term Income Fund. Account holders name and the Account number which has been debited for issue of such instrument. 7. DEMAT ACCOUNT DETAILS (Required)C) The AMC/ R&TA will not accept any purchase applications from investors if a) The Scheme will be listed on the National Stock Exchange of India Limited accompanied by a pre-funded instrument issued by a bank against cash for (NSE) and unitholders may avail of this facility for their transactions. In investments of R 50,000 or more. In case the application is accompanied by the case Unit holders do not provide their demat account details, they will not 33
  • 36. be able to trade on the stock exchange until the holdings are converted trust), society, body corporate, partnership firm, Karta of Hindu Undivided Family or a into demat mode and listed on the stock exchange. Power of Attorney holder. A Non-Resident Indian can be a Nominee subject to theb) Investors applying as Joint holders, need to provide Demat details of their exchange control regulations in force from time to time. However, nomination cannot Joint Demat Account. be made in favour of NRI or PIO residents of the United States of America and Canada. Nomination in respect of the units stands rescinded upon the redemption / transfer /8. COMMUNICATION transmission of units. Transmission of units in favour of a Nominee shall be a validJPMorgan Mutual Fund has a service which gives you the latest details of your account discharge by the asset management company against the legal heir. The cancellationincluding your current valuation and information on transactions. The Account of nomination can be made only by those individuals who hold units on their ownStatement, Annual Reports or other information etc. may be sent to unit holders by e- behalf singly or jointly and who made the original nomination. On cancellation of themail. If you have an e-mail address you can choose to receive e-mail communication nomination, the nomination shall stand rescinded and the AMC / Mutual Fund / Trusteesfrom us in lieu of printed documents. Please furnish your e-mail ID and indicate the shall not be under any obligation to transmit the units in favour of the Nominee. Everynature of communication you wish to receive over e-mail. When a unit holder has new nomination for a folio will overwrite the existing nomination.communicated his/her e-mail address and has provided consent for sending For multiple nominees, please fill up multiple forms. The nomination form is availablecommunication only via e-mail, the AMC / Mutual Fund / Registrars & Transfer Agents on page 41 of this document and on our website : www.jpmorganmf.comare not responsible for the e-mail not reaching the investor and for all consequencesthereof. The investor shall from time to time intimate the Fund / its transfer agents 10. DECLARATION AND SIGNATUREabout any changes in the e-mail address. In case of a large document, a suitable link (a) All the applicants must sign in original on the application form. Signatures shouldwould be provided and investors can download, save and print these documents. be in English or in any Indian language. Thumb impressions should be from theHowever, the unit holder always has the right to request a physical copy of any left hand for males and the right hand for females and in all cases be attested byshareholder communication and the AMC will arrange for the same to be sent to the a Magistrate, Notary Public or Special Executive Magistrate. In case of an HUFunit holder. (Hindu Undivided Family), the Karta will sign on behalf of the HUF. (b) The original Power of Attorney or a duly notarized copy of the Power of Attorney9. NOMINATION DETAILS shall be required to be submitted where applications are made under a Power ofNomination rules are subject to SEBI Regulations/applicable laws. Applicants applying Attorney.for Units singly/jointly can make a nomination at the time of initial investment or 10. Under the SIP, for each month / quarter, the investor must submit post-datedduring subsequent investments. cheques or ECS mandate. There should be a gap of one month / quarter betweenNomination shall be maintained at the folio level and shall be applicable for investments two cheques. The minimum number of instalments under SIP is 6. For JPMorganin all schemes in the folio. The nomination can be made only by individuals applying India Tax Advantage Fund, the minimum number of instalments is 18.for / holding units on their own behalf singly or jointly. Nomination shall be mandatoryfor new folios opened by individuals especially with sole holding. Non-individuals 11. In case of weekly dividend reinvestment option, record date for the declaration ofincluding a society, trust, body corporate, partnership firm, Karta of Hindu Undivided dividend shall be every Tuesday, in case of fortnightly dividend reinvestment optionFamily, holder of Power of Attorney cannot nominate. If the units are held jointly, all the record date shall be 14th and 28th of each month and in case of monthlyjoint holders will have to sign the nomination form. A minor can be nominated and in dividend reinvestment option, the record date shall be 25th of each month. Inthat event, the name and address of the guardian of the minor nominee shall be provided case these record dates falls on a non-Business Day, the record date shall beby the unit holder. However, nomination will not be allowed in a folio held on behalf of taken to be the next Business Day. There is no assurance or guarantee to Unitholdersa minor. Nomination can also be made in favour of the Central Government, State as to the rate of dividend distribution nor that the dividends will be regularlyGovernment, a local authority, any person designated by virtue of his office or a religious declared, though it is the intention of the Mutual Fund to make regular dividendor charitable trust. The Nominee shall not be a trust (other than a religious or charitable distribution under the Dividend Option. CHECKLISTPlease ensure that: Name, address, contact details are mentioned and the signature of ALL applicants is available in the application form. Bank account details are filled in completely and correctly (mandatory) including IFSC code. Your preferred option is selected and the investment is not less than the minimum investment amount. The Permanent Account Number (PAN) for all applicants is mentioned and necessary documents are enclosed, else your application will be rejected. NRIs need to provide their overseas address (mandatory). Cheques / DDs are drawn in favour of Scheme Name as applicable, dated and duly signed. Application form number/folio number and applicants name is mentioned on the reverse of each cheque / DD. Documents as listed below are submitted along with the application (as applicable to your specific case) in original / true copies certified by a Director / Trustee / Company Secretary / Authorised Signatory. For documents regarding mariners and PIOs or any queries please contact the AMC or ISC. Investors need not provide any of the below mentioned documents, except PAN, Resolution / authorisation to invest, List of authorised signatories with specimen signature(s), Notarised Power of Attorney, FIRC in case payment is made by DD from NRE / FCNR or where applicable if he / she / it provides the KYC Compliance proof. Documents Individual Companies Societies Partnership Investments Trusts NRI FIIs through PoA Resolution / authorisation to invest List of authorised signatories with specimen signature(s) Memorandum & Articles of Association Trust deed Bye-laws Partnership deed Notarised Power of Attorney For all applications KYC proof Proof of address Proof of identity FIRC in case payment is made by DD from NRE / FCNR or where applicable 34
  • 37. COMMON APPLICATION FORM Application no. T (Please refer to instructions carefully on pages 32, 33 and 34 before filling out this form) 1. DISTRIBUTOR INFORMATION (Please read the instructions before investing) Broker code Sub-broker code For office 74461 use ARN -Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor. 2. INFORMATION OF EXISTING UNIT HOLDER (For existing investor. Unless details in sections 3 - 6 have changed, please go directly to section 6. Note that applicant details and mode of holding will be as per existing folio number) Employee SID Folio no. (for employees of J.P. Morgan only) 3. APPLICANT INFORMATION Occupation [Please tick ( )] Status [Please tick ( )] Agriculture Student Business Retired Minor NRI Resident Individual HUF Company/BC Trust FIIs Bank / FI Professional Service Housewife Others ____________ Partnership AOP / BoI Club/Society PIO Sole proprietor Others (pl. specify) ____________________ Name of first applicant Date of birth* Mr. Ms. M/s. D D M M Y Y Y Y *In case where PAN is not provided, providing date of birth is mandatory or else the application is liable to be rejected. Name of guardian (in case of minor) Relationship: Father Mother Legal Guardian Mr. Ms. Name of Contact person (In case of institutional investors) Mr. Ms. Designation of the contact person Name of second applicant Mr. Ms. Name of third applicant Mr. Ms.Address of sole / first applicant (Please provide full address) (In case of NRIs/FIIs please provide overseas address - Mandatory P.O. box no. may not be sufficient) City Pin code M A N D A T O R Y State Country Overseas address (Please provide full address. P.O. box no. may not be sufficient) (Mandatory for NRIs / FIIs / PIO) City Pin Country code Communication Tel. (R) / Mobile no. Tel. (O) Fax no. E-mail I/We would like to receive the following documents through e-mail instead of post (Kindly ) Mode of holding [Please tick ( )] Account statement Newsletter Quarterly review & annual report Other statutory information Single Joint Anyone or survivor (default) Permanent Account Number (PAN) [Mandatory]First applicant M A N D A T O R Y KYC compliant Guardian M A N D A T O R Y KYC compliantSecond applicant M A N D A T O R Y KYC compliant Third applicant M A N D A T O R Y KYC compliant 4. BANK ACCOUNT DETAILS (Mandatory. The application will be rejected if this section is left blank. Please provide the details of the sole / first applicant). (Refer instruction no. 3 on page 32) Bank particulars (Name of the bank) Branch Branch address City Account number Account type Current Savings NRO NRE FCNR RTGS or neft - IFSC code R E Q U I R E D 9 digit MICR code Direct credit facility (please refer to the list of banks that offer direct credit facility on page 32). However, if you wish to receive a cheque payout, please tick here ( ) Electronic Clearing Services (ECS) facility is available for receiving dividends. If you wish to avail of this facility, please tick here ( )5. ANNUAL INCOME [Please tick ( )] Upto R 5,00,000 R 5,00,001 to R 25,00,000 R 25,00,001 to R 1,00,00,000 R 1,00,00,001 to R 5,00,00,000 R 5,00,00,001 and above 6. INVESTMENT DETAILS (Refer instruction no. 4 on page 33) Scheme name JPMorgan Plan (Please ) Retail Institutional Super Institutional Option (Please ) Dividend Dividend reinvestment (default) Dividend payout Growth (default) Daily* Weekly* Fortnightly* Monthly* *as applicable £ £ ACKNOWLEDGEMENT SLIP (To be filled in by the investor) Application no.Received from: Mr. / Ms. _________________________________________________________________________________________________________________________________________________________________________________ TApplication for units of : JPMorgan ________________________________________________________________________________________Plan___________________________________________________________Option (please ): Growth (default) Dividend reinvestment Daily (as applicable) Weekly (as applicable) Fortnightly (as applicable) Monthly (as applicable) Dividend payoutCheque / D.D. no. ________________________________________________________________ for R_____________________________________________________ dated_____________________________________________________Drawn on bank_________________________________________________________________________________________________________________________________________________________________________________________________ Office Signature, stamp & date
  • 38. 7. PAYMENT DETAILS (Refer instruction no. 5 on page 33)7A. INITIAL INVESTMENT (Please note that investors have to fill out separate common application forms for Initial and SIP investments)Cheque / DD no. Drawn on bank/Cheque / DD date D D M M Y Y Y Y Branch nameAmount of cheque / DD in figures (R) (i) Account type (Please ) Savings Currrent NRE NRO FCNRDD charges, if any, in figures (R) (ii) Relationship with beneficiaryTotal amount in figures (R) (i) + (ii) (Third party payment)Rupees in words7B. SYSTEMATIC INVESTMENT PLAN (Refer terms and conditions on page 38 and instructions for SIP on page 40) Frequency (Please any one only) Enrolment period Dates 1st (default) 10th 15th 25th All dates (for ECS facility only) Monthly SIP (default) Quarterly SIP Start Date M M Y Y No. of instalments (default as per SID) Payment mechanism (Please any one only) 1. Cheques (Please provide the details below) 2. ECS debit facility (Please complete the application form for ECS debit facility) First SIP transaction via Cheque no. Cheque dated D D M M Y Y Amount (R)Instalment amount (R) No. of instalments Total Amount (R)Subsequent From From Frominstalment cheque nos. To To To Cheques drawn on Name of bank Branch8. DEMAT ACCOUNT DETAILS OF FIRST / JOINT APPLICANT(S) (Refer Instruction 7) Depository Participant (DP) ID Beneficiary Account Number Depository Participant (DP) ID & Beneficiary Account Number NSDL OR CDSL Please note that : 1. If demat details provided are not valid, allotment will be done in physical / statement of account mode. 2. In case of valid demat account details provided, the bank account details, joint holding details, mode of holding (joint / anyone or survivor) in case of joint holdings, address details and nominee details as per the demat account shall prevail over the correponding details provided on the application form.9. NOMINATION* DETAILS (Nominations will not be permitted in case of folios held on behalf of a minor) I/We hereby nominate the undermentioned nominee to receive the amounts to my/our credit in the event of my/our death. I/We also understand that all payments and settlements made to such nominee and signature of the nominee acknowledging receipt thereof, shall be a valid discharge by the AMC / Mutual Fund / Trustees. Tick here if you do not wish to nominate ^ Name of the nominee Date of birth (if nominee is minor) Mr. Ms. M/s. D D M M Y Y Y YAddress of nominee (Please provide full address) Pin codeName of the guardian (If nominee is minor) Relationship with nomineeAddress of guardian Signature of guardian (mandatory) / nominee (optional) Pin code* For multiple nominations please ensure that the same details given in this nomination section are sent in on a separate sheet of paper, with all the investors’ signatures.^ Please note that if you do not tick the box nor furnish any nomination details, it is deemed to be assumed that you do not wish to nominate anyone.10. DOCUMENTS ENCLOSED (Please ) APPLICATIONS ENCLOSED (Please ) Total No. of enclosures Corporate Documents Yes No Micro SIP Systematic Investment Plan (SIP) MICRO SIP Document No. to be For ASL Yes No Alternate Document:_________________ Cheques Systematic Transfer Plan (STP) filled by office BR Yes No Document Number:__________________ ECS Debit Facility Systematic Withdrawal Plan (SWP) applicant use11. DECLARATION AND SIGNATURES Applicable to NRI / FII / PIO: I am / We are not U.S. or Canadian person(s) or resident(s) in or citizen(s) of the United States of America or Canada. I / We confirm that I am / We are Non-Resident(s) of Indian nationality / origin and that I / We have remitted funds from abroad through approved banking channels or from funds in my / our NRE / FCNR account. I / We undertake that all additional purchases made under this folio will also be from funds received from abroad through approved banking channels or from funds in my / our NRE / FCNR account. In case of non residents (please tick as appropriate): 1. Residential Status: Resident (including not ordinarily resident) Non-resident. 2. The units issued to me / us will be held as investment business asset#. Corporate applicants only: A corporation should affix its company stamp or seal, if any. I am / We are duly authorised to execute and deliver this Master Account Agreement. The corporation is not organised or formed by U.S. Persons, residents in or citizens of the United States of America principally for the purposes of investing in securities not registered under the Securities Act of 1933 of the United States of America. I / We have read, understood and agree to the contents of the Key Information Memorandum (including the ‘General section’), Statement of Additional Information and the Scheme Information Document of the above Scheme(s) of JPMorgan Mutual Fund including the sections on "Who cannot invest", "Note on Anti Money Laundering, Know-Your-Customer and Investor Protection", "How to Apply?”, “Fax Instructions” and any indemnities provided therein. I / We shall make our own independent decisions whether to subscribe for Units acting upon our own judgment and such independent advice as I / We consider appropriate. I / We hereby apply for allotment / purchase of Units in the Scheme(s) and agree to abide by the terms and conditions applicable thereto. I / We hereby declare that I / We am / are a "person resident in India" for the purposes of the Foreign Exchange Management Act, 1999 and I / We am / are authorised to make this investment and that the amount invested in the Scheme is through legitimate sources only and does not involve and is not designed for the purpose of any contravention or evasion of any act, rules, regulations, notifications or directions issued by any regulatory authority in India. I / We hereby authorise JPMorgan Mutual Fund, its Investment Manager and / or its agents to disclose details of my investment to my bank(s) / JPMorgan Mutual Funds bank(s) and / or any relevant distributor / broker / investment advisor, as appropriate. I / We have neither received nor been induced by any rebate or gifts, directly or indirectly, in making this investment. I / We declare that the information given in this application form is correct, complete and truly stated. The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us. I do not have any existing Micro SIPs which together with the current application will result in aggregate investments exceeding R 50,000 in a year. I hereby declare that in case of third party payments, the payments are covered under one of the following- Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding R 50,000/- (each regular purchase or per SIP installment) or Payment by Employer on behalf of employee through Payroll deductions or Custodian on behalf of an FII or a client. (These signatures will be matched against the signatures in the repurchase or other transactions and in case of improper match or difference in the signatures, investors will be requested to get their signature verified by their banks.) Date SIGNATURE(S) Sole / First applicant Second applicant Third applicant Third party cheque issuer # Please refer to Chapter III of the Scheme Information Document. Signature of all applicants is necessary in case a nominee has been mentioned in Section 8 above.JPMorgan Mutual FundNote: All future communications in connection with this application should be addressed to the nearest JPMorgan Customer Service Centre, quoting full name of the first applicant, the application serial number, thename of the scheme, the amount invested, date and the place of the Customer Service Centre where the application was lodged.Asset Management Company : JPMorgan Asset Management India Private Limited J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098. Tel.: 022 - 6157 3000 Fax : 022 - 6157 4170 E-mail india.investors@jpmorgan.com Toll free no. 1-800-22-5763 (JPMF)Registrar & Transfer Agent : Deutsche Investor Services Private Limited, Nirlon Knowledge Park, 4th Floor, Block 1, Western Express Highway, Goregaon (East), Mumbai - 400 063, Maharashtra - India. Tel. : 022 - 6670 6900 E-mail : investor.jpm@db.com
  • 39. ECS REGISTRATION CUM MANDATE APPLICATION FORM (ECS MANDATE FACILITY) Please read Terms & Conditions overleaf First SIP cheque and subsequent SIP via ECS (debit clearing) in select banks. The Trustee JPMorgan Mutual Fund India Private Limited I / We have read and understood the contents of the Scheme Information Document of the following scheme(s) and the terms & conditions of SIP ECS (debit clearing). Please ( ) any one. I / We hereby apply for ECS under the SIP (debit clearing) of the following scheme(s) / option and agree to abide by the terms and conditions of the following scheme(s) / plan / option (new registration). Please change my / our bank account for ECS (debit clearing) (change in bank account). I / We hereby apply for cancellation of ECS (debit clearing ) facility for SIP of the following scheme / option (cancellation). INVESTOR AND SIP DETAILSFolio no. (for existing unit holder) / Application no. (for new investor) Sole / First investor name Scheme name JPMorgan Option Growth (default option) Dividend (Please ) Dividend reinvestment (default) Dividend payout Daily* Weekly* Fortnightly* Monthly* *as applicable Plan (Please ) Retail Institutional Super Institutional Each SIP instalment amount (R) Frequency Monthly (default) Quarterly First SIP transaction Cheque via cheque no. dated D D M M Y Y Amount (R) SIP date (Please ) [for ECS (debit clearing)] 1st (default) 10th 15th 25th All dates* (see overleaf) There must be at least 21 days gap between the first SIP cheque and subsequent due date of ECS (debit clearing). SIP period [for ECS (debit clearing)] Start from M M Y Y End on M M Y Y (default - as per SID) I/We hereby, authorise JPMorgan Mutual Fund and its authorised service providers, to debit my/our following bank account by ECS (debit clearing) for collection of SIP payments. PARTICULARS OF BANK ACCOUNT Bank name Branch name Bank city Account number Account type (Please ) Savings Current 9 digit MICR code* RTGS or neft - IFSC code R E Q U I R E D * Please provide the MICR code of the bank branch from where the ECS is to be effected. MICR codes starting or ending with 00 are not valid for ECS. Accountholder name as in bank account I/We hereby declare that the particulars given above are correct and express my willingness to make payments referred above through participation in ECS (debit clearing). If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I/we would not hold the user institution responsible. I/We will also inform JPMorgan Mutual Fund about any changes in my / our bank account. I/We have read and agreed to the terms and conditions mentioned overleaf. Date SIGNATURE(S) First account holder’s signature (As in bank records) Second account holder’s signature (As in bank records) Third account holder’s signature (As in bank records) For office use only (not to be filled in by the investor) Recorded on Scheme code Recorded by Credit account number £ £ Authorisation of the bank account holder (to be signed by the Investor)This is to inform that I/we have registered for the RBI’s Electronic Clearing Service (debit clearing) and that my paymenttowards my investment in JPMorgan Mutual Fund shall be made from my/our below mentioned bank account with yourbank. I/we authorise the representative carrying this ECS (debit clearing) mandate form to get it verified & executed. Bank account number SIGNATURE(S) First applicant Second applicant Third applicant
  • 40. ECS : TERMS AND CONDITIONS Please read this form in conjunction with the SIP terms and conditions mentioned on the reverse of the SIP / SWP enrolment form before applying. 1. The first cheque should be drawn on the same bank account which is to be registered for ECS (debit clearing). Alternatively, the cheque may be drawn on any bank, but provide a photocopy of the cheque of the bank / branch for which ECS (debit clearing) is registered. 2. First SIP cheque and subsequent SIP instalments via ECS (debit clearing) should be of the same amount. 3. Please submit the following documents at least 21 days gap before the first SIP date for ECS (debit clearing) : • Application form for the respective scheme(s) • SIP ECS facility form • First SIP cheque 4. Investors will not hold JPMorgan Mutual Fund / JPMorgan Asset Management India Private Limited, its registrars and other service providers responsible if the transaction is delayed or not effected or the investors bank account is debited in advance or after the specific SIP date due to local holidays or any other reason. 5. JPMorgan Mutual Fund / JPMorgan Asset Management India Private Limited, its registrars and other service providers shall not be responsible and liable for any damages, compensation for any loss, damage, etc., incurred by the investor. The investor assumes the entire risk of using this facility and takes full responsibility. 6. JPMorgan Mutual Fund / JPMorgan Asset Management India Private Limited reserves the right to reject any application without assigning any reason thereof. 7. Please refer to the Key Information Memorandum / Offer Document of the respective scheme(s) for applicable NAV, risk factors, load and other information. 8. You can choose to change your bank account or discontinue this facility by giving 15 days written notice to any of our Investor Service Centres. * If the investor chooses this option, the mandate will be carried out for all four dates specified.JPMorgan Mutual FundNote: All future communications in connection with this application should be addressed to the nearest JPMorgan Customer Service Centre, quoting full name of the first applicant, the application serialnumber, the name of the scheme, the amount invested, date and the place of the Customer Service Centre where the application was lodged.Asset Management Company : JPMorgan Asset Management India Private Limited J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098. Tel.: 022 - 6157 3000 Fax : 022 - 6157 4170 E-mail india.investors@jpmorgan.com Toll free no. 1-800-22-5763 (JPMF)Registrar & Transfer Agent : Deutsche Investor Services Private Limited, Nirlon Knowledge Park, 4th Floor, Block 1, Western Express Highway, Goregaon (East), Mumbai - 400 063, Maharashtra - India. Tel. : 022 - 6670 6900 E-mail : investor.jpm@db.com 38 39
  • 41. STP / SWP Enrolment Form Enrolment form no. (Please read instructions overleaf) ST 1. DISTRIBUTOR INFORMATION (Please read the instructions before investing) Broker code Sub-broker code office use For ARN - 74461Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor.The TrusteeJPMorgan Mutual Fund India Private LimitedI / We have read and understood the contents of the Scheme Information Document of the following scheme(s) and the terms & conditions overleaf. I / We hereby apply forenrolment under the STP / SWP of the following scheme(s) / plan(s) / option(s) and agree to abide by the terms and conditions of the following scheme(s) / plan(s) / option(s). 2. APPLICANT INFORMATION Folio no. (for existing Unit holder) / Application no. (for new investor) Name of sole / first applicant Mr. Ms. M/s. PAN no. M A N D A T O R Y [Mandatory - Please refer to instruction no.2(d) on page 32] Please ( ) PAN card copy KYC compliant Name of guardian (in case First / Sole applicant is a minor) Mr. Ms. M/s. PAN no. M A N D A T O R Y [Mandatory - Please refer to instruction no.2(d) on page 32] Please ( ) PAN card copy KYC compliant Name of second applicant Mr. Ms. M/s. PAN no. M A N D A T O R Y [Mandatory - Please refer to instruction no.2(d) on page 32] Please ( ) PAN card copy KYC compliant Name of third applicant Mr. Ms. M/s. PAN no. M A N D A T O R Y [Mandatory - Please refer to instruction no.2(d) on page 32] Please ( ) PAN card copy KYC compliant 3. SYSTEMATIC TRANSFER PLAN (STP) DETAILS (This application form needs to accompany the application form of the scheme in case a new applicant opts for Systematic Transfer Plan) From Option ( ) Growth (default) Dividend scheme JPMorgan Dividend reinvestment (default) Dividend payout Daily* Weekly* Fortnightly* Monthly* *as applicable To Option ( ) Growth (default) Dividend scheme JPMorgan Dividend reinvestment (default) Dividend payout Daily* Weekly* Fortnightly* Monthly* *as applicableSTP dates (Please ) 1st (default) 10th 15th 25th Fixed amount per instalment (R)Frequency (Please any one only) Daily STP Weekly STP Fortnightly STP Monthly STP (default) No. of instalments Enrolment period From M M Y Y To M M Y Y Total amount of transfer (R) 4. SYSTEMATIC WITHDRAWAL PLAN (SWP) DETAILS (This application form needs to accompany the application form of the scheme in case a new applicant opts for Systematic Withdrawal Plan) Option ( ) Growth (default) Dividend Scheme JPMorgan Dividend reinvestment (default) Dividend payout Daily* Weekly* Fortnightly* Monthly* *as applicable SWP dates (Please ) 1st (default) 10th 15th 25th Amount of withdrawal per instalment (R) Frequency (Please any one only) Monthly SWP (default) Quarterly SWP No. of instalments Enrolment period From M M Y Y To M M Y Y Total withdrawal amount (R) 5. DECLARATION AND SIGNATURES Applicable to NRI / FII / PIO : I am / we are not U.S. or Canadian person(s) or resident(s) in or citizen(s) of the United States of America or Canada. I / We confirm that I am / we are Non-Resident(s) of Indian nationality / origin and that I/we have remitted funds and undertake that all additional purchases made under this folio will also be from funds received from abroad through approved banking channels or from funds in my / our NRE / FCNR account. In case of non residents (please tick as appropriate): The units issued to me / us will be held as a) investment b) business asset Corporate applicants only : (A corporation should affix its company stamp or seal, if any.) I am / we are duly authorised to execute and deliver this Master Account Agreement. The corporation is not organised or incorporated under the laws of the United States of America. By signing this form, I / we explicitly warrant that I / we remain in full compliance with all the declarations set out in section 10 of the Common Application Form previously completed by me / us and these declarations are deemed repeated in full for this and all future transactions in JPMorgan Mutual Fund. If you have any doubt as to the content of these declarations, please contact 1800-22-5763 (JPMF) before signing this form. (These signatures will be matched against the signatures in the repurchase or other transactions and in case of improper match or difference in the signatures, investors will be requested to get their signature verified by their banks.) Date SIGNATURE(S) Sole / First applicant Second applicant Third applicantPlease note : Signature(s) should be as they appear in the application form and in the same order. In case the mode of holding is joint, all applicants are required to sign. £ £ ACKNOWLEDGEMENT SLIP (To be filled in by the investor) Enrolment form no.Received from: Mr. / Ms. / M/s. ST(Please ) STP From scheme JPMorgan To scheme JPMorgan SWP From scheme JPMorganTotal STP / SWP amount (R) on Office Signature, stamp & date Daily Weekly Fortnightly Monthly (default) Quarterly basis.
  • 42. SYSTEMATIC INVESTMENT PLAN (SIP) : INSTRUCTIONS (Please read the Scheme Information Document for more details)Please note that the investor has to fill out a common application form for lumpsum and SIP investments.1. SIP is available to investors in all the schemes of JPMorgan Mutual Fund. there should be minimum gap of 21 days for the ECS mandate to take effect. For post2. The SIP application form should be completed in English and in block letters only. dated cheques to take effect, there should be a minimum of 15 days. Please tick ( ) in the appropriate circle. The SIP application form, complete in all For NRIs / NREs, please provide a copy of the cheque leaf or FIRC certificate. respects, should be submitted at any of the Investor Service Centres (ISCs) of 8. Units will be allotted on the above applicable date. In case the date falls on a non- Deutsche Investor Services Private Limited as designated by the AMC from time to business day or falls during a book closure period, the immediate next business day time. will be considered for the purpose of determining the applicability of NAV subject3. a. New investors who wish to enroll for SIP are required to fill the scheme to the realization of cheques. application form. New investors are advised to read the Scheme Information 9. Cheques should be drawn in favour of the respective "scheme name", for example, Document of the scheme(s) before investing. The Scheme Information for JPMorgan India Equity Fund the cheque should be drawn in favour of "JPMorgan Document / Key Information Memorandum(s) of the scheme(s) is available with India Equity Fund" and crossed "A/c Payee Only". Unit holders must write the SIP the ISCs, brokers/distributors and also displayed at the JPMorgan Mutual Fund enrolment/application form number on the reverse of the cheques accompanying website i.e. www.jpmorganmf.com. the forms. b. New investors need not have an existing folio for investments into respective 10. Payment may be made by cheques drawn on any bank which is situated at, and is schemes / options. Such investors can start a folio with an SIP. However, in case a member of, the bankers clearing house located at the place where the SIP of SIP investments an investor can enter the scheme(s) with a minimum SIP application is submitted. Outstation cheques will not be accepted and applications amount. accompanied by such cheques are liable to be rejected. No cash, money order or4. The application is liable to be rejected if any of the following are not provided: postal orders will be accepted. a. Permanent Account Number (PAN) and PAN proof for all applicants. 11. Investors / Unit holders may also enroll for SIP ECS enrolment facility through b. Bank details. Electronic Clearing Service (debt clearing) of the Reserve Bank of India. Investors c. FIRC certificate for NRI (or cheque copy). / Unit holders may also enroll for SIP direct debt facility available with banks / branches which may be included from time to time in order to enroll for this facility. d. Investor name & address. However, the first instalment will be by way of a cheque. Please fill up the application e. Date of birth of minor. form for SIP ECS enrolment, if you are opting for this facility. f. Overseas address for NRI. 12. Returned cheque(s) may not to be presented again for collection. In case g. Unsigned application. returned cheques are presented again, the necessary charges are liable to be h. Corporate documents, including Authorised Signatory List (ASL) as applicable. debited to the investor. i. All SIP investments must be of equal amounts including the first instalment. 13. An Account Statement will be issued by mail or by e-mail (if opted by the unit holder) to the unit holder within 10 working days for the first investment through SIP. The5. SIP offers investors the following two Plans: (i) Monthly Systematic Investment Plan subsequent account statements will be despatched once every quarter ending (MSIP) and (ii) Quarterly Systematic Investment Plan (QSIP). March, June, September and December within 10 working days of the end of the6. The investor must submit post-dated cheques for each month/quarter. There should respective quarter. In the case of a specific request received from investors, the be a gap of one month / one quarter between two cheques. Mutual Fund will provide the account statement to investors within five working days i. Minimum amount per cheque for each scheme under MSIP and QSIP is from receipt of such a request without any charges. Further, a soft copy of the R 1,000/-, and R 500/- for JPMorgan India Tax Advantage Fund. account statement shall be mailed to investors under SIP to their e-mail address on ii. Total minimum number of cheques/instalments under MSIP (default) and QSIP a monthly basis, if so mandated. is 6 and 18 for JPMorgan India Tax Advantage Fund. 14. Unit holders will have the right to discontinue the SIP facility at any time by sending7. All SIP cheques (non-ECS) must be dated 1st, 10th, 15th or 25th of a month. All SIP a written request to the ISC. Notice of such discontinuance should be received at cheques under MSIP and QSIP should be of the same amount and same date. For least 15 days prior to the due date of the next cheque. On receipt of such a request, example, if an investor is enrolling for MSIP for the period July - December for a total the SIP facility will be terminated and the balance post dated cheque(s) will be amount of R 60,000/- he will be required to issue six cheques all bearing the same returned to the unit holder. date (except for the first SIP cheque which could be of any date) and same amount. 15. The Trustee reserves the right to change/modify the terms and conditions of the SIP. It may, however, be noted that the first SIP cheque could be of any date, but all 16. Redemption of Units including units issued under dividend reinvestment option from subsequent cheques should be dated either 1st, 10th, 15th or 25th. The first SIP JPMorgan India Tax Advantage Fund can be made only after a lock-in period of 3 cheque (of any date) and the subsequent cheque should not fall in the same month (three) years has expired from the date of allotment of Units proposed to be for the MSIP and should not fall in the same quarter for the QSIP. Please note that redeemed. SYSTEMATIC TRANSFER PLAN (STP) INSTRUCTIONS (Please read the Scheme Information Document for more details)1. The transfer will commence from the start date that is provided by the applicant in 7. The STP application form needs to accompany the application form of the scheme the STP form. in case a new applicant opts for Systematic Transfer Plan.2. Please clearly tick the frequency of the STP (daily or weekly or fortnightly or 8. For selection of multiple STP dates under the same folio, a multiple number of STP monthly). forms are to be filled in.3. The STP request should be received at an Investor Service Centre at least 15 days 9. The transfers under this facility can be made on a daily / weekly / fortnightly / before the first transfer date. monthly basis.4. The AMC should be given clear instructions of discontinuance of at least 15 days in the case of an STP. 10. Units transferred into JPMorgan India Tax Advantage Fund will be locked in for a period of 3 (three) years from the date of allotment of Units. Units transferred out5. The transaction needs to be supported by a copy of the PAN proof (PAN card / PAN of the Scheme are required to have completed the lock-in period. STP will be subject allotment letter). to meeting the minimum redemption and purchase criteria of each of the respective6. In case the date that is chosen for the STP falls on a non-business day, the schemes. transaction will take effect from the following business day. SYSTEMATIC WITHDRAWAL PLAN (SWP) INSTRUCTIONS (Please read the Scheme Information Document for more details)1. The request for an SWP should be received at an Investor Service Centre at least 15 4. The SWP application form needs to accompany the application form of the scheme days before the first due date for withdrawal. in case a new applicant opts for Systematic Withdrawal Plan. 5. For selection of multiple SWP dates under the same folio, a multiple number of SWP2. The AMC should be given clear instructions of discontinuance of at least 15 days in forms are to be filled in. the case of an SWP. 6. Systematic withdrawal of Units from JPMorgan India Tax Advantage Fund can be3. The withdrawal will commence from the withdrawal start date that is mentioned in made only after completion of the lock-in period of 3 (three) years from the date the SWP form. of allotment of Units proposed to be withdrawn under the SWP facility.1. New standing instructions like SIP, SWP, STP in a minors folio shall only be registered till the date on which the minor attains majority, even if the instructions may be for a period beyond that date.2. In case of existing standing instructions including STP, SIP and SWP registered prior to the minor attaining majority, an advance notice shall be sent to the guardian and the minor, advising, that the existing standing instructions will continue to be processed beyond the date of the minor attaining majority till the time an instruction is received from the major, by the mutual fund to terminate the standing instruction. It is also be clarified that the standing instruction shall be terminated within 30 days from the date of receiving the instruction. 40
  • 43. Form for Nomination / Cancellation of Nomination (To be filled in by individual(s) applying singly or jointly) (Nominations will not be permitted in case of folios held on behalf of a minor)Scheme name JPMorgan Plan (Please ) Retail Institutional Super InstitutionalOption ( ) Growth (default) Dividend Dividend reinvestment (default) Dividend payout Daily* Weekly* Fortnightly* Monthly* *as applicableI / we anddo hereby nominate the person(s) more particularly described hereunder / and / cancel the nomination made by me / us on the day of in respect of the Folio No.1. FIRST NOMINEE Name of the nominee Date of birth (if nominee is minor) Mr. Ms. M/s. D D M M Y Y Y Y Address of nominee (Please provide full address) Percentage of allocation / share Pin code Name of the guardian (if nominee is minor) Relationship with nominee Mr. Ms. M/s. Address of guardian Signature of guardian (mandatory) / nominee (optional) Pin code 2. SECOND NOMINEE Name of the nominee Date of birth (if nominee is minor) Mr. Ms. M/s. D D M M Y Y Y Y Address of nominee (Please provide full address) Percentage of allocation / share Pin code Name of the guardian (if nominee is minor) Relationship with nominee Mr. Ms. M/s. Address of guardian Signature of guardian (mandatory) / nominee (optional) Pin code 3. THIRD NOMINEE Name of the nominee Date of birth (if nominee is minor) Mr. Ms. M/s. D D M M Y Y Y Y Address of nominee (Please provide full address) Percentage of allocation / share Pin code Name of the guardian (if nominee is minor) Relationship with nominee Mr. Ms. M/s. Address of Guardian Signature of guardian (mandatory) / nominee (optional) Pin code NAME AND SIGNATURE(S) OF APPLICANT(S) First applicant Mr. Ms. M/s. Second applicant Mr. Ms. M/s. Third applicant Mr. Ms. M/s. Sole / First applicant Second applicant Third applicantSignature of all applicants is necessary. For Office USeThe address as per our records, under the folio, is applicable for this form.
  • 44. INSTRUCTIONS1. These instructions are subject to SEBI Regulations / applicable laws.2. The nomination can be made only by individuals applying for/holding units on their own behalf singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of Power of Attorney cannot nominate. If the units are held jointly, all jointholders will sign the nomination form.3. A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unit holder. However, nomination will not be allowed in a folio held on behalf of a minor. Nomination can also be in favour of the Central Government, State Government, a local authority, any person designated by virtue of his office or a religious or charitable trust.4. The Nominee shall not be a trust, other than a religious or charitable trust, society, body corporate, partnership firm, karta of Hindu Undivided Family or a Power of Attorney holder. A non-resident Indian can be a Nominee subject to the exchange controls in force, from time to time.5. Nomination in respect of the units stands rescinded upon the transfer of units.6. Transfer of units in favour of a Nominee shall be valid discharge by the asset management company against the legal heir.7. The cancellation of nomination can be made only by those individuals who hold units on their own behalf singly or jointly and who made the original nomination.8. On cancellation of the nomination, the nomination shall stand rescinded and the asset management company shall not be under any obligation to transfer the units in favour of the Nominee.9. Unitholders should mention the number of nominees who shall receive the amounts in the event of his/her death in ratio mentioned by the unit holder. In case the ratio is not mentioned, the holding will be equally split. However, the AMC reserves the right to treat such requests as incomplete.10. Nomination cannot be made in favour of NRI or PIO residents of the United States of America and Canada.11. Nomination shall be maintained at the folio level and shall be applicable for investments in all schemes in the folio.12. Where a folio has joint holders, all joint holders should sign the request for nomination / cancellation of nomination, even if the mode of holding is not “joint”.13. Every new nomination for a folio/account will overwrite the existing nomination. 42
  • 45. APPLICATION FORM FOR REGISTRATION OF /ADDITIONS TO MULTIPLE BANK ACCOUNTSPlease read documentation requirements and Terms & Conditions overleaf IMPORTANT: Please fill in the information below legibly in English and in BLOCK Letters only. Please Date D strike off the section(s) that is (are) not used by you to avoid any unauthorized use. D M M Y Y Y YTo The TrusteeJPMorgan Mutual Fund India Private LimitedPlease ( ) ANY ONE of the boxes below. In absence of indication of the option, the form is liable to be rejected. I / We wish to register multiple bank accounts for my folio. I understand that Add one or more bank account(s) to the bank accounts already registered for all the existing bank accounts in the folio will be substituted. my folio. (For Unit Holders already registered for multiple bank accounts).Note : A combination of Savings (SB) / NRO and NRE accounts is not allowed for a folio. All the bank accounts for receiving redemption / dividend proceeds should be of type SB or NRO in case theinvestments are made vide SB or NRO accounts in the folio. If investments are made vide NRE account(s), all the bank accounts registered for redemption should be of NRE type only in the folio. A. UNIT HOLDER INFORMATION Folio nos.: 1. 2. 3. 4. 5. 6. Sole / First Unit Holder name B. DETAILS OF BANK ACCOUNTS DEFAULT BANK ACCOUNT (Refer instructions 2 & 3 overleaf) Bank name Branch name Bank city Account number 9 digit MICR code Account type (Please ) Savings Current NRE NRO FCNR Others RTGS or NEFT - IFSC code R E Q U I R E D SECOND BANK ACCOUNT Bank name Branch name Bank city Account number 9 digit MICR code Account type (Please ) Savings Current NRE NRO FCNR Others RTGS or NEFT - IFSC code R E Q U I R E D THIRD BANK ACCOUNT Bank name Branch name Bank city Account number 9 digit MICR code Account type (Please ) Savings Current NRE NRO FCNR Others RTGS or NEFT - IFSC code R E Q U I R E D FOURTH BANK ACCOUNT Bank name Branch name Bank city Account number 9 digit MICR code Account type (Please ) Savings Current NRE NRO FCNR Others RTGS or NEFT - IFSC code R E Q U I R E D PREFERRED MODE FOR RECEIVING REDEMPTION / DIVIDEND, IF ANY Unit Holders will receive their redemption / dividend (if any) proceeds directly into their bank account as furnished above vide Direct Credit facility / Electronic Credit through National Electronic Funds Transfer (NEFT) system of Reserve Bank of India (Refer instruction no. 17 overleaf). If you wish to avail of this facility, please () here If you want to receive the redemption / dividend (if any) proceeds by way of a Cheque payout instead of Direct Credit / Credit through NEFT system into your bank account, please () here C. UNIT HOLDER(S) SIGNATURE(S) I / We have read and understood the terms and conditions given below for registration of / changes to multiple bank accounts. I / We understand that my / our Application Form is liable to be rejected if it is not filled as per the directions provided herein and in case the correct and complete supporting documents are not provided by me/us. I / We hereby declare that the particulars given above are correct and express my / our willingness to receive credit of dividend / redemption proceeds through the mode indicated above. If the transaction is delayed or not effected at all for reasons of incomplete / incorrect information, I / We would not hold JPMorgan Mutual Fund / JPMorgan Mutual Fund India Private Limited / JPMorgan Asset Management India Private Limited, its Registrars and other service providers responsible. I / We shall also inform JPMorgan Mutual Fund India Private Limited / JPMorgan Asset Management India Private Limited about any changes in my / our bank account. SIGNATURE(S) Sole / First Unit Holder / Guardian Second Unit Holder Third Unit Holder
  • 46. DOCUMENTS REQUIRED Any of the following documents are valid supporting documents for registration of a bank account: (1) A cancelled original cheque leaf (where the account number and first Unit Holder name is printed on the face of the cheque). Unit Holders should without fail cancel the cheque and write ‘Cancelled’ on the face of it to prevent any possible misuse. (2) A letter from the bank on its letterhead certifying that the Unit Holder maintains an account with the bank, bank account information – bank account number, bank branch, account type, the MICR code of the branch IFSC Code (where available). The letter should be certified by the bank manager with his / her full signature, name, employee code, bank seal and contact number. (3) A copy of the bank pass book or a statement of bank account having the name and address of the account holder and account number. The copy should be certified by bank manager with his / her full signature, name, employee code, bank seal and contact number. (4) Unit Holders may also bring a copy of any of the documents mentioned in (3) above along with the original documents to the JPMorgan Customer Service Centre / Official Points of Acceptance of JPMorgan Mutual Fund India Private Limited. The copy of such documents will be verified with the original documents to the satisfaction of JPMorgan Mutual Fund India Private Limited / JPMorgan Asset Management India Private Limited. The original documents will be returned across the counter to the Unit Holder after due verification. Request Type Supporting Documents to be submitted for Request for registration for multiple bank accounts (1) Any one of the existing bank accounts in the folio (2) All the bank accounts mentioned in the Application Form for registration of multiple bank accounts Request for addition of bank account(s) in a folio in which multiple (1) Any one of the existing bank accounts in the folio bank accounts are already registered (2) The new bank account(s) which has to be added to the list of bank accounts registered in the folio TERMS AND CONDITIONS1. JPMorgan Mutual Fund India Private Limited offers a facility to investors for 10. In case 2 or 3 bank accounts have been registered for a folio, Unit Holder(s) can registering up to 4 bank accounts in a folio for receiving redemption proceeds provide a new bank account for redemption along with the redemption request. (hereinafter referred to as “the facility”). Investors have to specify any one bank Valid supporting documents for anyone of the bank accounts already registered as “Default” The bank account details mentioned in ‘DEFAULT BANK ACCOUNT’ for the folio as well as the new bank account sought to be added for the folio section in this form will be considered as “Default”. should be submitted with the redemption request. In case the supporting documents provided by Unit Holder(s) are incomplete / incorrect, the redemption2. Proceeds of dividends, if any, will be processed into the “Default” bank account proceeds will be credited into the bank account registered as “Default” in the folio. only. The new bank account will be added to the registered bank accounts in the folio.3. Proceeds of redemptions, if any, will be processed into the “Default” bank account In case 4 bank accounts are already registered for a folio, Unit Holder(s) cannot in any of the following scenarios: provide a new bank account for redemption along with the redemption request a. The Unit Holder(s) does not specify details of any bank account in the 11. In case of inability to process the request for registration / addition / change / redemption request for receiving redemption proceeds deletion of multiple bank accounts, an intimation will be sent to Unit Holder(s). b. The Unit Holder(s) specifies the bank account details of the “Default” bank 12. Unit Holder(s) can substitute one or more bank accounts registered in the folio by account in the redemption request submitting a separate form available for the purpose. c. The Unit Holder(s) specifies the details of a bank account in the redemption 13. Unit Holder(s) may submit a written request for deletion of one or more bank request which is not registered in the folio. accounts registered in the folio. No supporting documents should be submitted along with the request.4. The facility is not available to investors investing through distributors who have registered with JPMorgan Mutual Fund India Private Limited for sending 14. If a request by the Unit Holder(s) for deletion of bank account(s) reduces the total transaction details of their investors as electronic feeds i.e. channel partners. number of bank accounts in the folio to One, the request will be considered for opting out of the facility.5. When Unit Holder(s) opt for registering multiple bank accounts for the first time in their folio, the details of the bank account currently registered for receipt of 15. If a request by the Unit Holder(s) for deletion of bank account(s) reduces the total redemption / dividend proceeds will be substituted. number of bank accounts in the folio to Zero, the request will be rejected.6. If multiple bank accounts are already registered for a folio and the Unit Holder(s) 16. The bank account specified as “Default” account cannot be deleted. lt can only be provides a new Application Form for registering multiple bank accounts details, substituted with another bank account. the bank accounts currently registered for receipt of redemption / dividend 17. The facility of receiving direct credit of redemption / dividend proceeds into the proceeds will be substituted. account is available with ABN AMRO NV, Axis Bank, Citibank NA, Deutsche Bank,7. The facility will be activated in the folio within 10 calendar days from the receipt HDFC Bank. HSBC, ICICI Bank, IDBI Bank, Kotak Mahindra Bank and Standard of a duly completed Application Form. Chartered Bank. This list of banks is subject to change from time to time.8. In case of folios that have availed for the facility, any addition / change / deletion 18. Unit Holder(s) cannot provide the bank account(s) of any other person to receive in the registered bank accounts will be completed within 10 calendar days from the redemption / dividend proceeds in their folio. Unit Holder(s) have to submit the receipt of the Application Form for the same. The requests for addition / valid supporting documents for each bank account that they wish to register for change in the registered bank account(s) will only be received by way of receiving redemption / dividend proceeds in the folio. These documents should Application Forms available for this purpose. Requests received on a plain paper conclusively prove that the bank accounts provided pertain to the sole / first Unit are liable to be rejected. However, requests for deletion of the registered bank Holder. account(s) may be submitted on a plain paper. 19. JPMorgan Mutual Fund / JPMorgan Mutual Fund India Private Limited / JPMorgan9. A letter confirming the registration / addition / change / deletion of multiple bank Asset Management India Private Limited shall not be held liable for any loss accounts will be dispatched within 2 weeks of the receipt of the Application Form. arising to the Unit Holder(s) due to the credit of the redemption proceeds into any Unit Holder(s) should preserve this letter for their reference since bank account of the bank accounts registered with us for the aforesaid folio. details are masked (i.e. partially displayed) on the account statement. JPMorgan Mutual FundNote: All future communications in connection with this application should be addressed to the nearest JPMorgan Customer Service Centre, quoting full name of the Unit Holder,the Folio number, date and the place of the Customer Service Centre where the application was lodged.Asset Management Company : JPMorgan Asset Management India Private Limited J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098. Tel.: 022 - 6157 3000 Fax : 022 - 6157 4170 E-mail : india.investors@jpmorgan.com Toll free no. : 1-800-22-5763 (JPMF)Registrar Transfer Agent : Deutsche Investor Services Private Limited, Nirlon Knowledge Park, 4th Floor, Block 1, Western Express Highway, Goregaon (East), Mumbai - 400 063, Maharashtra - India. Tel. : 022 - 6670 6900 E-mail : investor.jpm@db.com
  • 47. INVESTOR SERVICE CENTRESJPMORGAN ASSET MANAGEMENT INDIA PRIVATE LIMITED :Ahmedabad : 302, Megha House, Near Law Garden, Mithakhali Six Road, Navrangpura, Ahmedabad - 380 006. Tel.: 079-66131701 Bengaluru : 501,5th Floor, Prestige Centre Point, 7, Cunningham Road, Bengaluru - 560 052. Tel.: 080-66510051 Chennai : T V Loganathan Towers, 2nd Floor, No. 95, V.M. Street, R.K. Salai, Mylapore, Chennai - 600 004. Tel.: 044-32427949 Kolkata : 22, Camac Street, Block B, 5th Floor, Kolkata - 700 016.Tel.: 033-64590182 Mumbai : J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098. Tel.: 022-6157 3000 New Delhi : 715-716,7th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi - 110 001. Tel.: 011-66130805 / 802 / 803 Pune : Office No. 301, Nandadeep, Above OdysseyShop, F.C. Rd., Shivajinagar, Pune - 411 005. Tel.: 020-66081000.DEUTSCHE INVESTOR SERVICES PRIVATE LIMITED :Investor Service Centres :The Registrar will be the official point of acceptance for electronic transactions received from specified banks, financial institutions, distribution channels,etc. (mobilised on behalf of their clients) with whom the AMC has entered / may enter into specific arrangements for purchase / sale / switch of Units.Ahmedabad : M-Square Building, First Floor, Swastik Char Rasta, B/H City Centre, Opp Om Complex, Off CG Road, Ahmedabad 380009 Bangalore :Stock Exchange Towers, No# 51, 1st Cross, J C Road, Bangalore 560 027 Bareilly : 320, Akash Floors, City Station Road, Civil Line, Bareilly 243001Bhavnagar : Sterling Point, 2nd floor (220-221), Waghawadi Road, Bhavnagar 364002 Bhubaneswar : Metro House, Shop No.5, A 410, Vanivihar,Bhubaneshwar 751004 Chandigarh : SCO 154-155, Sector 17 C, 2nd Floor, Deepak Towers, Chandigarh, (U.T) 160017 Chennai : New # 88 Old # 20, 3rdFloor, Janaki Sardar Patel Road, Adyar, Chennai 600020 Kochi : 39/ 4967, USNAZ Towers, 3rd Floor, Medical Trust Hospital Jn, Pallimukku,M. G. Road, Kochi 682016 Coimbatore : No.424-E, 2nd Floor, Red Rose Towers, D B Road, R S Puram, Coimbatore 641002 Cuttack : 1st Floor, BrajrajBhavan, Badambari Link Road, Opposite LIC Colony, Cuttack 753013, Orissa Dehradun : Shop No.25, Ground Floor, Radha Palace Shopping Complex,78 Rajput Road, Dehradun 248001 Erode : No.849, N.S.T.V. Building, 1st Floor, Opp Shivranji Hotel, Brough Road, Erode 638001 Gurgaon : Upper GroundFloor, Shop No. 114, A.K.D Tower, Sector- 14 , Gurgaon 122001 Hyderabad : 6-3-1093/UG-3 (A B) Vintage Boulevard, Raj Bhavan Road, Somajiguda,Hydrebad-500 082 Jaipur : Office No. 605, 6th Floor, Green House, Ashok Marg, C-Scheme, Jaipur 302001 Jamnagar : 106, Madhav Complex, P. N. Marg,Opp. D.K.V. College, Jamnagar 361004 Jamshedpur : Bharat Business Center, Ground Floor, Ram Mandir Area, Beside Mithiala Motors, Bistupur, Jamshedpur831001 Kanpur : Office No. 217, 2nd Floor, Kan Chambers, 14/113, Civil Lines, Kanpur 208001 Kolhapur : Shop No. 84, Gemstone Rao Bahadur VichareComplex, 517/2, New Shahupuri Near S T Stand, Kolhapur 416001 Kolkata : Central Plaza , Flat 702, 2/6, Surat Bose Road, Kolkata 700020 Lucknow : F-1-C, AF Tower, 1st Floor, Opp. Civil Hospital, Park Road, Lucknow 226001 Mumbai : Prospect Chambers Shop No 315, Ground Floor, Opp Thomas Cook /HSBC Bank, D N Road, Fort, Mumbai 400001 Nagpur : Shop No.10, Prathiba Sankul, North Ambazari Road, Nagpur 440010 Nasik : Suyojit Chambers,Ground Floor, G-2, Trumbak Naka, Near CBS, Nasik 422002 New Delhi : 910/911 A, 9th Floor, Narain Manzil, Barakamba Road, New Delhi 110001Panipat : N K Towers, 2nd Floor, Near IB College, G.T Road, Panipat 132103 Pune : 675 Ananth Chambers, Shop no 2, Gr Floor, Kumthekar Road, SadashevPeth, Pune 411030 Rajamundry : 36-7-8, 1st Floor, SBI Complex, Stadium Road, Innespet, Rajamundry 533101 Rajkot : L-1, Puja Commercial Complex,Harihar Chowk, Near GPO, Panchnath Plot, Rajkot 360001 Surat : Office No-213, Jolly Plaza, 2nd Floor, Athwa Gate, Opp. Athwa Gate Police Station, Surat395001 Udaipur : 406, 3rd Floor, 4-D, Daulat Chambers , Sardarpura, Udaipur 313001 Vadodara : 301, Gokulesh - II, Opp : Ivory Terrece, R C Dutt Road,Alkapuri, Vadodra 390005. Vijayawada : Beside Big C Mobile Show room, 1st floor, Labipet, M G Road, Vijayawada 10 Warangal : Shop No. C-40, 1stFloor, Green Square, Opposite Public Garden, Hanamkonda, Warrangal 506001.Transaction Acceptance Points :Mumbai (Borivali) : Patel Shopping Centre, Shop No. 25, Ground Floor, Chandawarkar Lane, Borivali (W), Mumbai 400092 Mumbai (Ghatkopar) : 2-BGround Floor, Kailash Plaza Building, Behind Raymond Showroom, Vallabh Baug Lane, Ghatkopar (East), Mumbai 400 077 Mumbai (Mulund) : Office No.111, Sai Arcade, N.S.B Road, Mulund West, Mumbai 400080 Agra : Shop No. 209, Block No. 29, F1, First Floor, Opp. CDO, Sanjay Place, Agra 282002Allahabad : Shyam Bhavan, Shop No. 1, 30/22- A/1, M G Road, Civil Lines, Allahabad 211001 Amravati : Shop No. 108, 1st Floor, Vidharbha Plaza, I/F ofGulshan Tower, Nazul Plot No. 1/12, Amravati Amritsar : Plot No. 77, Room No. 1, Mani Market, 2nd Floor, Railway Link Road, Amritsar 143001Aurangabad : Plot No. 3, 1st Floor, Sahakar Bank Colony, New Osmanpura, Opp. BSNL Office, Aurangabad 431001 Belgaum : Block No. 3, Ground Floor,79/A, Opp. Purandar Bhavan, Somwar Peth, Tilakwadi, Belgaum 590006 Bhopal : Sangam Tower, Plot No. 8, 1st Floor, M P Nagar, Zone-1, Bhopal 462011Calicut : Office No. 4/269, Ground Floor, A1, Rashy Apartments, Near 5th Railway Gate, Vellayil, Calicut 673032 Durgapur : P-42, 1st Floor, Recol Park,Durgapur 713216 Goa (Panjim) : Shop No. 8, Casa Nina, Plot No. D-5 D-10, La Campala Residency Colony, Miramar, Panaji, Goa Gorakhpur : LGF-39,Mangalam Tower, Civil Lines 13, Golghar, Gorakhpur 273001 Guwahati : House No. 33, Chowdhury Bhawan, 1st Floor, Borthakur Mill Road, Ulubari,Guwahati 781007 Gwalior : Shop No. 29, 1st Floor, Vindhyachal Complex, 38-City Centre, Near Airtel Office, Gwalior 474011 Hubli : Karnatak Chambersof Commerce Bldg, 2nd Floor, J C Nagar, Hubli 580020 Indore : Shop No. 9, Upper Ground Floor, City Plaza 564 - M G Road, Indore Jallandhar : EH -198,Civil lines, office No. 311, 03rd Floor, Lotus Tower, Jalandhar 144003 Jodhpur : Shop No. 6, Ground Floor, Adheshwar Tower, Chopasani Road, Jodhpur -342001 Ludhiana : Shop No. 33, Lower Ground Floor, New Shopping Center, Gumhar Mandi, Ludhiana Madurai : Office No. L-85, Basement, AR Plaza,16-17 North Veli Street, Madurai 625009 Mangalore : 3rd Floor, Rama Bhavan Complex, Kodialbail, Mangalore 575003 Moradabad : 1st Floor, Sai SadanCommercial Complex, Adjouring to Stock Holding Corporation of India Ltd, Jail Road, Moradabad, 244001 Mysore : Vaishak Shares Ltd, C-282, 1st Floor,Laxmivilas Road, Near Jaganmohan Palace, Mysore 570024 Nellore : Vasant Vihar, Door No. 16/2/227 AB Gandhi Nagar, 1st Floor, Near Kaizen Towers(ACN Building), Pogathota, Nellore 524001 Patiala : Showroom No. SCO29, New Leela Bhawan, 3rd Floor, Patiala Patna : Shop No. 2, Ground Floor,Holding No. 471/251, Circle-249, Ward No. 23, PS-Shrikrishnapuri, Patna Ranchi : Shop No. G08, Ground Floor, Yamuna Apartment, Anantpur, Ranchi834001 Rourkela : Deutsche Investor Service, 2nd Floor, Khata No. 492/147, Rourkela Town Unit No. 35 Rourkela, Ps- Plantsite, Dist-Sundargarh, OrissaSalem : Shop No. 9 10, 1st Floor, Raja Arcade, Opp. RBS Bank, Sree Ram Nagar, Alagapuram, Salem 636016 Siliguri : Shop No. 5, 3rd Floor, ShikhadeepBuilding, Sevoke Road, Siliguri 734001 Trichy : 60/2 Sastri Road,1st floor, Thillainagar, Trichy 620017 Trivandrum : Shop No. TC-15/49(4), 3rd Floor,Saran Chambers, Vellayambalam, Trivandrum 695001 Valsad : Office No. 303, 3rd Floor, Trade Centre, Near Hotel Adina Palace, Station Road, Valsad396001 Varanasi : Unit No. 16, Kuber Complex, 3rd Floor, D-58/2, Rath Yatra Crossing, Varanasi 221010 Vizag : Shop No. 1, Ground Floor, RednamRegency, 2nd Lane, Dwaraka Nagar, Vizag 530016.The above list is subject to change from time to time. The investors are advised to contact the Investor Service Centre / office of the AMC for exact 04/11location and contact numbers of the Collecting Bankers / AMC offices / ISCs.

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