JMFinancial Mutual Fund Common Application Form with KIM

1. Trust is always the answer
Key Information Memorandum & Common Application Form
Offer of units for subscription at Net Asset Value (NAV) based prices
(Subject to prevailing load structure)
OPEN-ENDED GROWTH SCHEMES JM ARBITRAGE ADVANTAGE FUND
JM EMERGING LEADERS FUND JM INTERVAL FUND
JM CORE 11 FUND OPEN-ENDED INCOME SCHEME
JM EQUITY FUND JM FLOATER FUND - LONG TERM PLAN
JM MULTI STRATEGY FUND JM INCOME FUND
JM NIFTY PLUS FUND JM MIP FUND (An open-ended monthly income fund with no assured return)
OPEN-ENDED SECTOR EQUITY SCHEMES JM MONEY MANAGER FUND
JM BASIC FUND JM SHORT TERM FUND
OPEN-ENDED EQUITY LINKED SAVINGS SCHEME OPEN-ENDED LIQUID SCHEMES
JM TAX GAIN FUND JM FLOATER FUND - SHORT TERM PLAN
OPEN-ENDED BALANCED SCHEME JM HIGH LIQUIDITY FUND
JM BALANCED FUND OPEN-ENDED GILT SCHEME
OPEN-ENDED EQUITY ORIENTED INTERVAL FUND JM G-SEC FUND
SPONSOR: JM Financial Ltd. TRUSTEE: JM Financial Trustee Company Private Limited REGISTRAR: Karvy Computershare Private Limited.
INVESTMENT MANAGER: JM Financial Asset Management Private Limited, 502, 5th Floor, A Wing, Laxmi Towers, Badra - Kurla Complex, Mumbai – 400 051.
Tel. : (022) 3987 7777 Fax : (022) 2652 8388 Website: www.jmfinancialmf.com E-mail: investor@jmfinancial.in
This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/Mutual Fund, due diligence certificate by
the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations, associate transactions etc. investors should, before investment, refer to the Scheme Information
Document (SID) available free of cost at any of the Investor Service Centres or distributors or from the website www.JMFinancialmf.com
The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with 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.
The date of this Key Information Memorandum is April 27th, 2011.
JM SCHEMES RECKONER
MINIMUM CRITERIA FOR INVESTMENT & REDEMPTION Currently available facilities Default
Purchase : As mentioned in the reckoner table for normal transactions other than through SIP/STP. Sr.
Schemes Min. invest- Default Default Sub Redemption
no. Plans Options Sub Options Default Plan
Additional Purchase : Rs. 1,000/- or any amount thereafter in all schemes except JM Tax Gain Fund. In case of JM Tax Gain Fund, additional ment amt. Option Option Time#
purchase is in multiples of Rs. 500/- each. Payout / Dividend
JM G Sec Regular Dividend T+2 Business
3 Rs. 5000/ Reinvestment - Growth Reinvest-
Repurchase : Minimum redemption from existing Unit Accounts for normal transactions other than through STP/SWP would be Fund Plan Days
Growth ment
a) Rs. 500 and any amount thereafter OR
Auto If investment
b) 50 units or any number of units thereafter subject to keeping a minimum balance of 500 units or Rs. 5000/- whichever is Daily Dividend
Reinvestment amt is < Rs.
less. Weekly Dividend 1 crore then
Payout / Regular; If Auto
c) for all the units in the folio for the respective plan if the available balance is less than Rs. 500/- or less than 50 units Rs. 5000/-
Regular Quarterly Dividend investment Daily
Reinvest-
Plan Reinvestment Dividend
on the day of submission of valid redemption request. Annual Dividend amount is ment
equal to or
Reckoner and Default Options:In case an investor fails to specify his preference of Plans/Sub- Plans/Options/Sub-Options, in Growth more than Rs.
the below mentioned schemes, the default Plans/Sub-Plans/Options/Sub-Options for purchase transactions would be as under : 1 crore but
Bonus
less than Rs.
EQUITY SCHEMES Daily Dividend
Auto 5 crores then
Reinvestment Institutional
JM High Plan. If invest-
Currently available facilities Default Payout /
ment amount T+1 Business
Sr. 4 Liquidity Weekly Dividend
Schemes Reinvestment Days
Min. investment Default Default Sub Redemption Fund is equal to Auto
no. Options Sub Options Rs. Institutional Growth Daily
or more than Reinvest-
amt. Option Option Time# 1,00,00,000/- Plan Dividend
Rs. 5 crores ment
JM Arbitrage Advan- Dividend Payout / Reinvestment T+3(*) Business then Super
1 Rs. 5000/- Growth Reinvestment Institutional
tage Fund Growth Days Bonus
Plan
Dividend Payout / Reinvestment -
2 JM Balanced Fund Rs. 5000/- Growth Reinvestment T+3 Business Days
Growth Auto
Daily Dividend
Reinvestment
Dividend Payout / Reinvestment Super Auto
3 JM Basic Fund Rs. 5000/- Growth Reinvestment T+3 Business Days Rs. Daily
Institutional Payout / Reinvest-
Growth 5,00,00,000/-
Plan
Weekly Dividend
Reinvestment
Dividend
ment
JM Emerging Leaders Dividend Payout / Reinvestment Growth
4 Rs. 5000/- Growth Reinvestment T+3 Business Days
Fund Growth
JM Payout / Dividend
Dividend T+2 Business
Dividend Payout / Reinvestment 5 Income Rs. 5000/- - Reinvestment Growth Reinvest-
5 JM Equity Fund Rs. 5000/- Growth Reinvestment T+3 Business Days Fund ment Days
Growth Growth
Dividend Payout / Reinvestment Dividend / Daily
Auto Auto
6 JM Multi Strategy Fund Rs. 5000/- Growth Reinvestment T+3 Business Days Regular Dividend / Weekly Daily
Growth Reinvestment Reinvest-
Plan Dividend Dividend
ment
Dividend Payout / Reinvestment JM Floater Growth
7 JM Nifty Plus Fund Rs. 5000/- Growth Reinvestment T+3 Business Days Fund - T+1 Business
Growth 6
Long Term
Rs. 5000/- Daily Dividend / Auto Premium Plan
Weekly Dividend Reinvestment Days
Rs. 500/- or in Dividend Payout Plan Auto
Premium Daily
8 JM Tax Gain Fund multiple of Rs. Growth Payout T+3 Business Days Payout / Reinvest-
Growth Plan Fortnightly Dividend Dividend
Reinvestment ment
500/- each
Growth
Dividend Payout / Reinvestment
9 JM Core 11 Fund Rs. 5000/- Growth Payout T+3 Business Days Monthly Dividend/
Growth Payout /
JM MIP Quarterly Dividend/ Monthly T+2 Business
7 Rs. 5,000/- - Reinvestment - Payout
Fund Annual Dividend Dividend Days
DEBT & LIQUID SCHEMES Growth
Payout /
Currently available facilities Default Fortnightly Dividend
Reinvestment
Sr. Regular
Schemes Rs. 5000/
no. Min. invest- Default Default Sub Redemption Plan Daily Dividend Reinvestment If investment
Plans Options Sub Options Default Plan Dividend
ment amt. Option Option Time# amt is < Rs.
JM Short Growth Growth Reinvest- T+1 Business
Daily Dividend 8 1 lac then
Term Fund Payout / ment Days
Auto Fortnightly Dividend Regular, else
Regular Weekly Dividend Reinvestment Institutional
Reinvestment Institutional
Plan Rs. 100000/
Fortnightly Dividend Plan Daily Dividend Reinvestment
Growth Growth
Daily Dividend
JM Money Weekly Dividend
Auto Auto * The redemption shall be in terms of Interval Period defined hereinbelow. # AMC would adhere to the aforesaid service
Reinvestment Super Plus Daily T+1 Business standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business
1 Manager Rs. 5000/- Super Plan Reinvest-
Fortnightly Dividend Plan Dividend Days days as stipulated by SEBI.
Fund ment
Growth In case, the investor does not mention the name of Plan/Options/Sub-Options/or wherever there is an ambiguity in choice of
Daily Dividend Plan/Option/Sub-Option opted for, the AMC/Registrar will allot the units as per default Plans/Options/Sub-Options. In case,
Auto it is not possible to decide about the default Plans/Options/Sub-Options, then the application will be treated as invalid and
Super Plus Weekly Dividend Reinvestment summarily rejected.
Plan Fortnightly Dividend
Note: Dividend shall be declared at the descretion of the Trustee subject to the availability of distributable profits as compiled
Growth in accordance with SEBI (MF) Regulations, 1996.
JM Floater Auto No dividend under Dividend Plan shall be distributed in cash even for those unitholders who have opted for payout where
Auto Daily
Fund - Daily Dividend - Reinvest- T+1 Business such dividend on a single payout is less than Rs.100/-. Consequently, such dividend (less than Rs.100/-) shall be compulsorily
2 Rs. 5000/- Reinvestment Dividend
Short Term ment Days re-invested except under JM Tax Gain Fund as there is no dividend reinvestment option under the scheme.
Plan Growth

2. Trust is always the answer
HIGHLIGHTS OF THE SCHEME(S)
Name(s) of the Scheme(s) JM Equity Fund JM Emerging Leaders Fund JM Multi Strategy Fund
Type of Scheme An open-ended growth scheme An open-ended equity oriented growth scheme An open ended equity oriented scheme
Investment Objective To provide optimum Capital growth and appreciation. To seek long term capital appreciation from investment in a portfolio of stocks To provide capital appreciation by investing in equity and equity related securities using
across all market capitalization range. The portfolio may include those companies
However, there can be no assurance that the investment objectives of operating in emerging sectors of the economy or companies which exhibit potential a combination of strategies
the Scheme will be realized. The Scheme does not guarantee/indicate any to become leaders of tomorrow.
returns.
However, there can be no assurance that the investment objectives of the Scheme
will be realized. The Scheme does not guarantee/indicate any returns.
Investment Strategy JM Equity Fund seeks to invest a substantial portion of its portfolio in equity Under normal circumstances, the corpus would be invested in equities and equity The Scheme proposes to invest primarily in equities and equity related securities using
and equity related instruments. Under normal circumstances, around 80% oriented securities of companies across all sectors and market cap range.The a combination of strategies. Depending on the prevailing market conditions, the Scheme
of the corpus shall be deployed in such securities and the balance in debt/ Scheme’s investment strategy would be to utilize the extensive research resources will either adopt the growth or value style of investing. During benign market conditions,
money market instruments. However, whenever the valuations of securities to identify stocks across market capitalizations and across sectors. The investment the Scheme will act like an aggressive growth fund with a concentrated portfolio of say
rise in a sharp manner, the AMC will take advantage of trading opportunities universe of this Scheme shall comprise of stocks from all market capitalisation 25 – 30 stocks with a targeted portfolio beta of greater than 1 whereas in a bearish
presented and in such a scenario, the Fund will have a high turnover rate. range viz., large cap, mid cap and small cap as defined which may be across all market the Scheme will have a low volatility conservative portfolio of larger number of
sectors. The fund will seek to use predominantly a bottom-up research approach stocks in the range of 40 to 60 stocks with a targeted portfolio beta of less than 1.
to select stocks in the emerging sectors of the economy and companies which
have the potential to become tomorrow’s leaders. The Scheme could also invest
in stocks that attract a low Price-Earnings multiple relative to peers in the same
sector and have the potential to deserve a higher multiple due to structural changes
in business environment.
The Scheme could have a high portfolio turnover ratio and is suitable for investors
having a reasonably longer investment horizon.
Asset Allocation Pattern of Type of Instruments Normal Allocation Risk Type of Instruments Normal Allocation Risk Profile
the Scheme Type of Instruments Normal Allocation
(% of net assets) Profile (% of net assets) Risk Profile
(% of net assets)
Equity 80% to 100% High Equity & equity related instruments** 80% to 100% Medium to High Equity & equity related instruments (including Medium to
65% to 100%
Money market instruments / Debt* 0% to 20% Low to Medium equity derivatives)** High
Debt, Money market and short term Low
0% to 20% Money market instruments / debt securities Low to
debt inst maturing within one year **The notional value of derivatives shall not exceed the AUM of the scheme. 0% to 35%
(including securitized debt* to the extent of 20%) Medium
The notional value of derivatives shall not exceed the AUM of the scheme. * including securitized debt upto a maximum of 20% of net assets of this scheme. For
short term period on defensive consideration the scheme may invest upto 100% **The notional value of derivatives shall not exceed the AUM of the scheme.
of the funds available in overnight interbank call/notice money and/or repos, the * excluding foreign securitized debt.
primary motive being to protect the Net Asset Value of the Scheme and protect The AMC intends to invest in derivative instruments in accordance with the SEBI
unitholders interest so also to earn reasonable returns on liquid funds maintained Regulations, as and when opportunities arise in the derivatives markets. The investment
for redemption/ repurchase of units. in derivatives will be broadly in line with the investment objective of the Scheme.
Risk Profile of the Scheme Mutual Fund Units involve investment risks including the possible loss of Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal. Please
principal. Please read the SID carefully for details on risk factors before Please read the SID carefully for details on risk factors before investment. read the SID carefully for details on risk factors before investment.
investment.
Plans and Options Dividend (Payout & Reinvestment option) & Growth Dividend (Payout & Reinvestment option) & Growth Dividend Plan (Payout & Reinvestment option) & Growth Plan
Applicable NAV Details are set out in subsequent pages. Details are set out in subsequent pages. Details are set out in subsequent pages.
Minimum Application Refer JM SCHEMES RECKONER on page 1 Refer JM SCHEMES RECKONER on page 1 Refer JM SCHEMES RECKONER on page 1
Amount / No. of Units
Dispatch of Repurchase / Details are set out in subsequent pages. Details are set out in subsequent pages. Details are set out in subsequent pages.
Redemption request
Benchmark Index BSE Sensex BSE 200 Index BSE 500 Index
Dividend Policy Details are set out in subsequent pages. Details are set out in subsequent pages. Details are set out in subsequent pages.
Name of the Fund Manager Sanjay Chhabaria Asit Bhandarkar Sanjay Chhabaria
Performance of the Scheme Compounded annualized returns (%) of Growth option as on March 31, 2011. Compounded annualized returns (%) of Growth option as on March 31, 2011. Compounded annualized returns (%) of Growth option as on March 31, 2011.
Compounded annualized
returns Returns 1 year 3 years 5 years Since inception* Returns Returns
1 year 3 years 5 years Since inception* 1 year Since inception*
JM Equity Fund 5.39 (2.43) 2.40 8.50 JM Emerging Leaders Fund JM Multi Strategy Fund
(7.97) (16.21) (9.95) (1.98) (5.57) 14.63
BSE 500 Index 7.48 15.35
BSE Sensex 10.94 7.52 11.50 11.80 BSE 200 Index 8.15 7.17 10.98 16.85
* Date of inception = Date of allotment i.e. 23.09.2008
* Date of inception = Date of allotment i.e. 01.04.1995 * Date of inception = Date of allotment i.e. 27.07.2005
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with
Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more,
more, with reinvestment of dividends (if any). Past performance may or may with reinvestment of dividends (if any). Past performance may or may not be reinvestment of dividends (if any). Past performance may or may not be sustained in
sustained in future. future.
not be sustained in future.
100.00 150.00 100.00
JM Equity - Growth BSE Sensex JM Emerging Leaders Fund - Growth BSE200 JM Multi Strategy Fund - Growth BSE 500
80.00
100.00 80.00
60.00
60.00
Returns%
Returns%
40.00 50.00
Returns%
20.00 FY 08-09 40.00
FY 08-09 0.00
0.00 20.00
FY 10-11 FY 09-10 FY 07-08 FY 06-07 FY 10-11 FY 09-10 FY 07-08 FY 06-07
-20.00 -50.00
0.00
-40.00 FY 10-11 FY 09-10
-100.00 -20.00
-60.00
Entry Load NIL NIL NIL
Exit Load 1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if 1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed 1.00% of NAV on all investment (including SIP/ STP/ SWP) transactions, if redeemed
redeemed / switched-out within 365 days of transfer/ allotment of units in / switched-out within 365 days of transfer/ allotment of units in normal transactions/ / switched-out within 365 days of transfer/ allotment of units in normal transactions/
normal transactions/ allotment of units of respective installments in SIP/ STP/ allotment of units of respective installments in SIP/ STP/ SWP transactions. allotment of units of respective installments in SIP/ STP/ SWP transactions.
SWP transactions.
(ii) Recurring expenses First Rs.100 Next Rs.300 Next Rs. 300 For the Balance First Rs.100 Next Rs.300 Next Rs. 300 For the Balance
[% of Net Assets] First Rs. 100 Next Rs. 300 Next Rs. 300 For the Balance
crores crores crores Assets crores crores crores Assets
Crores Crores Crores Assets
2.50% 2.25% 2.00% 1. 75% 2.50% 2.25% 2.00% 1.75%
2.50% 2.25% 2.00% 1.75%
Actual Expenses for the period 1st April 2010 to 31st March 2011: 2.50% Actual Expenses for the period 1st April 2010 to 31st March 2011 : 2.38% Actual Expenses for the period 1st April 2010 to 31st March 2011 : 2.50%
No. of Folios as on 31.03.2011 10170 27882 7921
Quarterly Avg. AUM (In
28.13 140.43 21.73
Crores) - Jan 11 to Mar 11
HIGHLIGHTS OF THE SCHEME(S)
Name(s) of the Scheme(s) JM Core 11 Fund JM Nifty Plus Fund JM Basic Fund
Type of Scheme An open ended equity oriented scheme An open-ended equity oriented scheme An open-ended sector scheme
Investment Objective To provide long-term growth by investing predominantly in a concentrated To outperform the benchmark by predominantly investing in the constituents To its Unitholders through judicious deployment of the corpus of the Scheme in sectors
portfolio of equity / equity related instruments of companies. of S & P CNX Nifty in the same weightages as in its composition and through categorized under “basic industry” in the normal parlance and in context of the Indian
deployment of surplus cash in debt and money market instruments and derivative economy, including but not limited to, energy, petrochemicals, oil & gas, power
instruments. generation & distribution, electrical equipment suppliers, metals and building material.
However, there can be no assurance that the investment objective of the scheme The fund would continue to remain open-ended with a sector focus.
will be realized. The scheme does not guarantee/indicate any returns. However, there can be no assurance that the investment objectives of the Scheme will
be realized. The Scheme does not guarantee/indicate any returns.
Investment Strategy The Scheme will have a concentrated portfolio with not more than 11 stocks The JM Nifty Plus will be a fund, where the scheme will endeavor to provide Under normal circumstances, the corpus would be invested in equities and equity type
in the portfolio with each stock being invested to the extent of 9.09% of the returns better than the benchmark. Hence the Fund will at all times be deployed securities categorized under “basic industry” in the normal parlance and in context of
NAV of the Scheme. The portfolio will be rebalanced on a fortnightly basis so with a minimum of 65% and maximum upto 100% of the corpus into Nifty 50 the Indian economy, including but not limited to, energy, petrochemicals, oil & gas,
as to prevent any one stock going above the targeted concentration range. shares, in the same weightages as its composition thus maintaining the equity power generation & distribution and electrical equipment suppliers, metals and building
To prevent stagnancy of the portfolio, the portfolio will be reviewed on a status of the Fund. materials. The fund would continue to remin open-ended with a sector focus. Exposure
half yearly basis whereby some stocks would be replaced. Besides that in times when there are good investment opportunities, the following of investment in individual scrip if part of the Sectoral Index shall not be restricted to
strategies may be followed which will endeavor to provide additional returns : 10% of NAV as Clause 10 of Seventh Schedule of SEBI Regulations has clarified that
a) Arbitrage Opportunities the limit of 10 percent shall not be applicable for investments in index fund or sector
b) Ratio/Spread Trades. or industry specific scheme.
c) Option Strategies.
Asset Allocation Pattern of the Maximum
Type of Instruments Normal Allocation Security Risk Profile Type of Instruments Normal Allocation
Scheme Risk Profile Exposure (%) Risk Profile
(% of net assets) (% of net assets)
Equity stocks comprising the S&P CNX
Equity and equity related 65 - 100 High
65% to 100% Medium to High Nifty Index Equity & equity related
securities# Equity Derivatives 0 – 50 High instruments (including equity 80% to 100% High
Money Market Instruments derivatives)
0% to 35% Low to Medium Debt & Money Market Instruments
/ Debt 0 - 35 Low to Medium
(including securitised debt) Debt securities & Money market
The Scheme will not invest in securitized debt. 0% to 20% Low
instruments
The notional value of derivatives shall not exceed the AUM of the scheme.
# Exposure to derivatives would be capped at 50 % of equity portfolio of the Securitised Debt 0% to 20% Low
Scheme. The cumulative gross exposure through equity, debt and derivative
positions will not exceed 100% of the net assets of the Scheme. The Trustee
may, from time to time, pending deployment of funds of the Scheme in
securities in terms of the investment objective of the Scheme, invest the
funds of the Scheme in short-term deposits of scheduled commercial banks
in accordance with SEBI Circular No. SEBI/IMD/CIR No. 1/91171/07 dated
April 16, 2007, as amended.
Risk Profile of the Scheme Mutual Fund Units involve investment risks including the possible loss of Mutual Fund Units involve investment risks including the possible loss of principal. Mutual Fund Units involve investment risks including the possible loss of principal. Please
principal. Please read the SID carefully for details on risk factors before Please read the SID carefully for details on risk factors before investment. read the SID carefully for details on risk factors before investment.
investment.
Plans and Options Dividend Plan (Payout & Reinvestment option) & Growth Plan Dividend Plan (Payout & Reinvestment option) & Growth Plan. Dividend Plan (Payout & Reinvestment option) & Growth Plan
Applicable NAV Details are set out in subsequent pages. Details are set out in subsequent pages. Details are set out in subsequent pages.
Minimum Application Amount Refer JM SCHEMES RECKONER on page 1 Refer JM SCHEMES RECKONER on page 1 Refer JM SCHEMES RECKONER on page 1
/ No. of Units
Dispatch of Repurchase / Details are set out in subsequent pages. Details are set out in subsequent pages. Details are set out in subsequent pages.
Redemption request
w.e.f. November 1, 2010 , the benchmark index of JM Basic Fund has been changes
Benchmark Index BSE Sensex S&P CNX Nifty Index
to BSE 200 from BSE Basic Industries Index (Disclaimer Pls refer Pg no. 11.
2