Escolar Documentos
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('NFO') period and at Net Asset Value ('NAV') subject to applicable Entry and Exit Loads / Contingent Deferred Sales Load ('CDSL') thereafter.
KEY INFORMATION MEMORANDUM
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 Offer Document available free of cost at any of the Investor Service Centres or distributors or from the website www.jpmorganmf.com.
The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and 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: 20 October 2007.
IISL Disclaimer: "The JPMorgan India Smaller Companies Fund is not sponsored, endorsed, 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 or any member of the public regarding the advisability of investing in securities 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 JPMorgan Asset Management India Pvt. Ltd. is in respect of using of the trademark and trade name of CNX Midcap Index for benchmarking purposes, which is determined, composed
and calculated by IISL without regard to JPMorgan Asset Management India Pvt. Ltd. IISL has no obligation to take the needs of JPMorgan Asset Management India Pvt .Ltd. or the owners of the Product into consideration in determining, composing or calculating the CNX Midcap Index. IISL is not responsible for nor has participated
in the determination of the timing of, prices at, or quantities of the Product to be issued or in determination or calculation of the equation by which the product is to be converted into cash. IISL has no obligation or liability in connection with the administration, marketing or trading of the Product."
"IISL does not guarantee the accuracy and/or the completeness of the CNX Midcap Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL makes no warranty, express or implied, as to the results to be obtained by the Principal JPMorgan Asset Management India Pvt.
Ltd., owners of the Product, or any other persons or entities from the use of the CNX Midcap Index or any data included therein. IISL makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the CNX Midcap Index or any data included
therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages".
Sponsor: Trustee: Asset Management Company:
JPMorgan Asset Management (Asia) Inc. JPMorgan Mutual Fund India Private Limited JPMorgan Asset Management India Private Limited
Correspondence Office: 21/F Chater House, 8 Connaught Place, Central, Hong Kong. Registered Office: Mafatlal Centre, 9th Floor, Nariman Point, Mumbai 400 021 Registered Office: Mafatlal Centre, 9th Floor, Nariman Point, Mumbai 400 021
NAME OF THE SCHEME : JPMorgan India Smaller Companies Fund. EXPENSES OF THE SCHEME in case of women resident in India below 65 years of age and Rs 1,10,000 in case of other individuals and HUF),
As per the Regulations, the following fees and expenses can be charged to the Scheme: the short-term capital gains will be reduced to the extent of the shortfall and only the balance short-term capital
TYPE OF SCHEME : An open-ended equity growth scheme. gains will be subjected to the 10 per cent tax rate.
1. Initial issue expenses
INVESTMENT OBJECTIVE As per the Regulations initial issue expenses cannot be charged to an open-ended scheme. Only entry load shall be For the purpose of computing the eligible deduction under section 80C of the Act, the total income of the assessee
The investment objective is to seek to generate long-term capital appreciation from a portfolio that is substantially charged during the NFO. shall be reduced by the income earned in the nature of short-term capital gains.
constituted of equity and equity-related securities focused on smaller companies. Generally, the universe will be the Annual Scheme Recurring expenses In case of non-resident Unit Holders eligible for availing tax treaty benefits, please refer to para (v) below.
companies constituting the bottom fourth by way of market capitalization of stocks listed on the NSE / BSE. The fund The On-going fees and expenses of operating the Scheme on an annual basis, and which shall be charged to the (iii) Tax on Business Income
manager may from time to time include other equity and equity-related securities outside the universe to achieve Scheme, are estimated to be (each as a percentage per annum of the daily average net assets):
optimal portfolio construction. However, there can be no assurance that the investment objective of the scheme will Under section 28 of the Act, profit arising on transfer of units of a mutual fund which are held as stock in trade
be realised. Maximum Recurring Expenses: or trading asset, is taxed under the head 'Profits and Gains of Business or Profession'. Such profit is added to the
Daily average net assets Maximum, as a % of daily average net assets total income of the assessee and taxed at the rates mentioned in Table A above.
ASSET ALLOCATION PATTERN First Rs 100 crore 2.50% In case of non-resident Unit Holders eligible for availing tax treaty benefits, please refer to paragraph (v) below.
Under normal circumstances, it is anticipated that the asset allocation shall be as follows: Next Rs 300 crore 2.25% (iv) Tax Deduction at Source
Instrument Normal allocation Risk profile Next Rs 300 crore 2.00% Table B
(% of net assets) Balance assets 1.75% TDS Rates under the Act
Equity and equity related securities of Smaller Companies* 65-100% Medium to high Maximum Investment Management Fee to be charged by the AMC: Residents FIIs NRIs / Other foreign entities
Equity and equity related securities of companies (excluding FIIs)
Daily average net assets Maximum, as a % of daily average net assets
other than Smaller Companies* 0-35% Medium to high Short-term Non-equity Nil Nil 30 per cent for foreign non-corporates
First Rs 100 crores 1.25% capital gains oriented fund 40 per cent for foreign corporate entities
Debt and money market instruments 0-35% Low to medium Balance assets 1.00%
Equity oriented Fund Nil Nil 10 per cent
* Includes investments in equity and equity related securities issued by domestic companies; including derivatives Any excess over these limits will be borne by the AMC.
traded on the Futures and Options segment of Indian stock exchanges not exceeding 50% of the net assets of Long-term Non-equity Nil Nil 10 per cent for specified overseas financial
the Scheme, offshore securities, ADRs and GDRs not exceeding 50% of the net assets of the Scheme. Investment LOAD STRUCTURE OF THE SCHEME capital gains oriented fund organisations 20 per cent for other foreign
in securitised debt may be made to the extent of 20% of net assets of the Scheme. entities
Sales of Units under the Scheme could attract an Entry Load (as a % of the invested amount). Repurchases could
attract an Exit Load (as a % of the Applicable NAV for Redemptions). Equity oriented Fund Nil Nil Nil
RISK PROFILE OF THE SCHEME Business Non-equity and equity Nil 30 per cent for 40 per cent for corporate FIIs
Mutual Fund investments are subject to market risks. Please read the Offer Document carefully for details During the NFO Period and Ongoing Offer Period
income oriented mutual fund non-corporate FIIs 30 per cent for foreign non-corporates
on risk factors before investment. 1. Entry Load
40 per cent for foreign corporate entities
PLANS AND OPTIONS For each Purchase Entry Load (% of Rs 10
or Applicable NAV as The aforementioned tax rates would be increased by a surcharge of:
The Scheme offers two options - growth option and dividend option. The dividend option offers dividend payout (a) 10 per cent - in case of foreign non-corporate Unit Holders, where the total income exceeds Rs 10,00,000
the case may be)
and dividend reinvestment.
Under the growth option, no dividend will be declared. Under the dividend option, a dividend may be declared by (i) Of less than Rs. 5 crores 2.25% (b) 2.5 per cent - in case of foreign corporate Unit Holders, where the total income exceeds Rs 100,00,000
the Trustee, at its discretion, from time to time (subject to the availability of distributable surplus as calculated in (ii) Of Rs 5 crores or more Nil Further, an additional surcharge of 3 per cent by way of education cess would be charged on the amount of tax
accordance with the Regulations). (iii) By an FOF (irrespective of the amount of Purchase) Nil inclusive of surcharge for all Unit Holders.
If the investor does not clearly specify the choice of option at the time of investing, it will be treated as a growth (iv) As a result of dividend re-investment Nil In case of non-resident Unit Holders eligible for availing tax treaty benefits, please refer to paragraph (v) below.
option. (v) Through SIP where single instalment is less than Rs 5 crores 2.25% (v) Tax treaty
If the investor does not clearly specify the choice of dividend payout or reinvestment options within the dividend option, (vi) Through SIP where single instalment is more than or equal to Rs 5 crores Nil In the case of a non-resident Unit Holder who is resident of a country with which India has signed a Double Taxation
he will be treated as having selected the reinvestment option. Avoidance Agreement (DTAA), which is in force, income tax is payable at the rate provided in the Act or at the rate
(vii) Through STP where a single instalment is less than Rs 5 crores 2.25% provided in the such agreement, whichever is more beneficial to such non resident Unit Holder.
CUT-OFF TIME AND APPLICABLE NAV (viii) Through switch-in or STP, provided that Units are switched out from the Further, where the rate of tax prescribed under the relevant DTAA is lower than that prescribed under the Act, tax
The cut-off time for the Scheme is 3 p.m., and the Applicable NAV will be as under: Scheme or any other equity scheme of the Fund to another scheme of would be withheld at such lower rate.
For Purchase / Redemption the Fund and back to the Scheme within 90 days of switch-out/STP. Nil
However, in order to obtain the benefit of the lower rate under the DTAA, the Unit Holder would be required to
(a) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment (ix) Through systematic transfers other than above Entry Load as applicable to
any Purchase (as mentioned provide a certificate from his Assessing Officer stating the eligibility of the investor to claim such benefit.
instruments accepted at a Designated Collection Centre up to 3.00 p.m. on a Business Day, the NAV of such
day will be applicable. in point (i) and (ii) above. (vi) Tax on Income distributed by the Mutual Fund
(b) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment (x) Through switch-in from other equity schemes of the Fund Nil Under the provisions of section 10(35) of the Act, income received in respect of units of a mutual fund specified under
instruments accepted at a Designated Collection Centre after 3.00 p.m. on a Business Day, the NAV of the next section 10(23D) of the Act will be exempt from income tax in the hands of all unit holders.
A switch-in may also attract an Entry Load like any Purchase except in cases mentioned above.
Business Day will be applicable. In view of the exemption of income in the hands of the unit holders, no tax needs to be deducted at source from
The above will be applicable only for cheques / demand drafts / payment instruments payable locally in the city in 2. Exit Load such distribution by the Fund on or after April 1, 2003, under the provisions of sections 194K and 196A of the Act.
which a Designated Collection Centre is located. No outstation cheques will be accepted. For Redemption Exit Load Dividend stripping
For Switches (% of Applicable NAV) Under the provisions of section 94(7) of the Act, where a person buys any units within a period of three months
Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switch- Within 6 months from the date of allotment in respect of Purchase made before the record date, sells such units within nine months after such date and the income distributed on such units
in' shall be treated as applications for Purchase, and the provisions of the cut-off time and the Applicable NAV other than through SIP 1.00% is exempt from tax, the loss on such sale to the extent of the income distributed on units shall be ignored while
mentioned in the Offer Document as applicable to Purchase and Redemption shall be applied respectively to the Within 24 months from the date of allotment in respect of the computing the income chargeable to tax.
'switch-in' and 'switch-out' applications. first Purchase made through SIP 1.00% Bonus stripping
MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS No Entry / Exit Loads / CDSL will be chargeable in case of switches made between different options of the Scheme. Under the provisions of section 94(8) of the Act , where a person buys units (original units) within a period of three
Subject to the Regulations, the Trustee retains the right to change / impose an Entry / Exit Load / CDSL. months before the record date, receives bonus units on such original units, and then sells (all or part of) the original
Minimum initial application amount Rs 5,000 per application and multiples of Rs 1/- thereafter units within a period of nine months from the record date and continues to hold the bonus units, then the loss incurred
Minimum additional application amount Rs 1,000 per application and in multiples of Rs 1/- thereafter To know the latest position on Entry / Exit Load or CDSL structure prior to investing / Redemption, investors on the original units shall be ignored while computing the income chargeable to tax but shall be deemed to be the
are advised to contact any of the ISCs or the AMC at its toll-free number "1800 22 5763". cost of acquisition of the bonus units.
Minimum amount / no. of units for redemption Rs 1,000 or 100 Units
TAX TREATMENT OF INVESTMENT IN MUTUAL FUNDS (vii)Switching between options
DESPATCH OF REPURCHASE (REDEMPTION) REQUEST Prospective unit holders should inform themselves of, and take their own advice on, the taxes applicable to the As stated in Section XI.H.4 switching from one option to another option will be effected by way of Redemption of
Redemption proceeds will be paid by cheques, marked "A/c Payee only" and drawn in the name of the sole holder / subscription, holding and redemption of units, and any distribution (each, a "Relevant Event") under the laws of the units of the relevant option and reinvestment of the redemption proceeds in the other option selected by the Unit
first-named holder (as determined by the records of the Registrar). place of their operations, domicile, residence, citizenship and/or incorporation. Neither the Fund nor any of the parties Holder. Hence switching will attract the same implications as applicable on transfer of such units.
The Mutual Fund will endeavour to despatch the Redemption proceeds within three Business Days from the acceptance listed in the Sections VII & IX of this Offer Document gives or makes any warranty and/or representation as to the (viii) Exemptions from long-term capital gains
of the Redemption request, but not beyond 10 Business Days from the date of Redemption. If the payment is not tax consequences in relation to any Relevant Event (or combination of Relevant Events), takes any responsibility for As per the provisions of section 54EC of the Act, taxable long-term capital gains [including gains arising on transfer
made within the period stipulated in the Regulations, the Unit Holder shall be paid interest @15% p.a. for the delayed any tax consequences in relation to any Relevant Event (or combination of Relevant Events) and each of the Fund of a long-term capital asset being units not otherwise exempt under section 10(38) of the Act] are exempt from tax
period and the interest shall be borne by the AMC. and such parties expressly disclaims any liability whatsoever for any tax consequences in relation to any Relevant Event to the extent such capital gains are invested, within a period of six months of such transfer, in acquiring bonds
The bank name and bank account number, as specified in the Registrar's records, will be mentioned in the cheque. (or combination of Relevant Events) and/or for any loss howsoever arising (whether directly or indirectly) from any redeemable after 3 years and issued on or after April 1, 2007 by the National Highways Authority of India and by
The cheque will be payable at par at all the cities having ISCs. If the Unit Holder resides in any other city, he will Relevant Event (or combination of Relevant Events). Dividends, interest income, gains on the disposal of investments the Rural Electrification Corporation Limited. A ceiling of Rs 50,00,000 applies in respect of investment in such bonds
be paid by a demand draft payable at the city of his residence and the demand draft charges shall be borne by the and other income received by the Fund on its investments in some jurisdictions may be liable to the imposition of in any financial year.
AMC. The proceeds may be paid by way of direct credit / EFT / SEFT / RTGS / wired transfer / any other manner through income tax, irrecoverable withholding tax or other tax.
which the investor's bank account specified in the Registrar's records may be credited with the Redemption proceeds. If the said bonds are transferred within a period of 3 years from the date of their acquisition, the amount of capital
The following paragraphs are based on Law and practice currently in force as well as known future tax changes at gains exempted earlier would become chargeable to tax as long-term capital gains in the year in which the bonds
Note: The Trustee, at its discretion at a later date, may choose to alter or add other modes of payment. the date of this Offer Document and are subject to changes in content and interpretation. They are intended as a are transferred.
The Redemption proceeds will be sent by courier or (if the addressee city is not serviced by the courier) by registered general guide only and do not necessarily describe the tax consequences for all types of investors in the Fund and
post. The despatch for the purpose of delivery through the courier / postal department, as the case may be, shall no reliance, therefore, should be placed upon them. As per the provisions of Sec 54F of the Act in the case of an individual or a HUF, specified taxable long-term capital
be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non-delivery gains [including gains arising on transfer of a long-term capital asset being units not otherwise exempt under section
Income-tax 10(38) of the Act] are not chargeable to tax if the entire net consideration received on such transfer is invested within
or any consequences thereof, if the despatch has been made correctly as stated in this paragraph. The income-tax rates indicated below are as per the Finance Act, 2007. the prescribed period in a residential house. If part of such net consideration is invested within the prescribed period
BENCHMARK INDEX FOR PERFORMANCE COMPARISON A. FOR UNIT HOLDERS : in a residential house, then proportionate exemption is available.
CNX-Midcap Index. (i) Securities Transaction Tax ('STT') (ix) Set-off and carry forward of losses
DIVIDEND POLICY At the time of sale of units of an equity oriented fund to the Mutual Fund (ie redemption / repurchase of units by According to the provisions of the Act, the capital loss resulting from sale of units would be available for set off against
the fund), the Unit Holder is required to pay a STT of 0.25 per cent on the value of the sale, which will be collected other capital gains made by the investor and would reduce the tax liability of the investor to that extent. However,
The Trustee may decide to distribute by way of dividend, the surplus by way of realised profit, dividends and interest, by the Mutual Fund and deposited into Government treasury.
net of losses, expenses and taxes, if any, to Unit Holders, if such surplus is available and adequate for distribution losses on transfer of units held as long term capital assets would be allowed to be set-off only against gains from
in the opinion of the Trustee. The Trustee's decision with regard to availability and adequacy, rate, timing and frequency (ii) Tax on Capital Gains transfer of long-term capital assets. Where such losses arising from sale of units held as capital asset cannot be wholly
of distribution shall be final. The dividend will be due to only those Unit Holders whose names appear in the register On units of Equity Oriented Funds: set-off, the amount of losses not set-off can be carried forward for a period of eight years. However, when the long
of Unit Holders in the dividend option of the Scheme on the record date which will be announced in advance. The Long-term Capital Gains term gains arising on transfer of units are not subject to tax then the long-term losses from such units would not
Unit Holders have the option of reinvesting the dividend. be allowed to be set off or carried forward.
Under section 2(29A) of the Income-tax Act, 1961 ('Act'), units of a mutual fund held as capital assets are treated
as long-term capital assets if they are held for a period of more than 12 months preceding the date of transfer. The Under the Act, a loss resulting from the transfer of units held as stock in trade or trading asset would be available
NAME OF THE FUND MANAGERS for set off against income under any other head other than income under the head 'Salaries'. Where such loss cannot
additional (bonus) units issued under any option under the Scheme and held as capital assets would be treated as
Mr Harshad Patwardhan / Mr Amit Gadgil a long-term capital assets if held for a period of more than 12 months from the date when such additional units be wholly set-off in accordance with the provisions of the Act, the amount remaining to be set-off can be carried
were allotted. forward for a period of eight years and set-off against income under the head 'Profits and Gains of Business or
NAME OF THE TRUSTEE COMPANY Profession'.
As per section 10(38) of the Act, long-term capital gains arising from the sale of a unit of an equity oriented fund
JPMorgan Mutual Fund India Private Limited (x) Rebate for STT
is exempt from tax where such sale attracts STT. For this purpose, 'an equity oriented fund' has been defined as a
Registered Office: Mafatlal Centre, 9th Floor, Nariman Point, Mumbai 400 021 No deduction would be allowed for STT while calculating capital gains. However, where the units are treated as stock
scheme of a Mutual Fund where the investible funds are invested in equity shares of domestic companies to the extent
PERFORMANCE OF THE SCHEME of more than 65 per cent of the total proceeds of such fund. The percentage of equity shareholding of the fund in trade and the profits arising from the sale of units are taxed under the head 'Profits and Gains of Business or
shall be computed with reference to the annual average of the monthly averages of the opening and closing figures. Profession', an amount equal to the STT paid by the Unit Holder can be claimed as a rebate from the tax payable
Performance of JPMorgan India Equity Fund as on 16 October 2007 on the income from such sale of units by virtue of the provisions of section 88E of the Act.
Short-term Capital Gains
Scheme returns (%) Benchmark returns (%) Under section 2(42A) of the Act, units of a mutual fund held as capital assets for a period of 12 months or less preceding (xi) Minimum Alternate Tax
Since inception 35.72% 34.75% the date of their transfer are regarded as short-term capital assets. Under the Act, long-term capital gains arising on sale of units of an equity oriented fund and exempt under the
As per section 111A of the Act, short-term capital gains arising from the sale of a unit of an equity oriented fund provisions of section 10(38) of the Act, would not be excluded from the book profits while calculating profits
Note: Absolute returns of the growth option are computed in the sample above. "Since inception" returns are chargeable to minimum alternate tax.
calculated on Rs10 invested at inception. Past performance may or may not be sustained in future. to the Mutual Fund and chargeable to STT, is taxable at the rate of 10 per cent.
The said tax rate would be increased by a surcharge of: B. TAX BENEFITS / CONSEQUENCES TO THE MUTUAL FUND:
Performance of JPMIEF vs BSE 200 (a) 10 per cent - in case of individual / HUF / AOP and BOI, where the total income exceeds Rs 10,00,000 JPMorgan Mutual Fund is a Mutual Fund registered with the Securities and Exchange Board of India and its entire
(b) 10 per cent - in case of firms / domestic corporate Unit Holders, where the total income exceeds Rs 100,00,000 income is exempt from tax under the provisions of section 10(23D) of the Act. The Mutual Fund will receive all Indian
40.0% – 35.72% 34.75% sourced income without any deduction of tax at source under the provisions of section 196(iv) of the Act.
Returns
(c) 2.5 per cent - in case of foreign corporate Unit Holders, where the total income exceeds Rs 100,00,000
30.0% – Where the Fund receives any income from investments made in overseas jurisdictions, the same may be subject to
(d) Nil - in case of local authority and co-operative societies withholding tax (or any other tax) in the relevant jurisdiction from which the income is received. As the Fund is
20.0% –
Further, an additional surcharge of 3 per cent by way of education cess would be charged on amount of tax inclusive exempted from its entire income (including foreign income) in India, credit / refund in respect of such foreign taxes
10.0% – of surcharge for all Unit Holders. withheld / paid by the fund will not be available.
0.0% – However, in case of resident individuals and HUFs, where the total income as reduced by the short-term capital gains, Income distribution, if any, made by a Mutual Fund, will attract distribution tax under section 115R of the Act at
JPMIEF Since Inception BSE 200
is below the basic exemption limit (Rs 1,95,000 in case of resident individuals of an age of 65 years or more, Rs 1,45,000 the rates listed below:
Table C Table D reasons and explaining when the Fund would be able to publish the NAVs.
Sr No Type of Mutual Fund Income distributed to Rate of distribution tax Transaction Rate of STT Payable by The AMC will before the expiry of one month from the close of each half year (i.e. March 31 and September 30)
(i) Equity oriented mutual fund Any person Nil disclose the full portfolio of the Scheme by either sending a complete statement to all the Unit Holders or by publishing
Sale of an equity share in a company / unit of an equity-oriented fund where the
(ii) Money market mutual fund transaction is entered into in a recognised stock exchange and the contract is such statement, by way of advertisement, in one English daily newspaper having nationwide circulation and in a
or Liquid mutual fund Any person 25 per cent settled otherwise than by actual delivery or transfer of shares / units. 0.025% Seller newspaper published in the language of the region where the head office of the Fund is situated.
(iii) Mutual fund other Individual or HUF 12.5 per cent Sale of a derivative when transaction is entered into in a recognised stock exchange. 0.017% Seller FOR INVESTOR GRIEVANCES PLEASE CONTACT
than (i) and (ii) above Any person other than Individual or HUF 20 per cent Investors can enquire about NAVs, unit holdings, valuation, dividends, etc or lodge any service request at the toll-
C. OTHER BENEFITS:
The aforementioned rates would be increased by a surcharge of 10 per cent and an additional surcharge by way free number "1800 22 5763". In order to protect confidentiality of information, the service representatives may require
(i) Wealth-tax: Units of a scheme of a Mutual Fund are not treated as assets as defined under section 2(ea) of the
of education cess at the rate of 3 per cent on the amount of distribution tax inclusive of surcharge. Wealth-tax Act, 1957 and thereof would not be liable to wealth-tax. personal information of the investor for verification of his identity. The AMC will at all times endeavour to handle
For this purpose, a 'Money market mutual fund' has been defined to mean a money market mutual fund as defined transactions efficiently and to resolve any investor grievances promptly.
(ii) Gift-tax: The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of units
in sub-clause (p) of clause 2 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. Further, Any complaints should be addressed to Mr Anutosh Bose, who has been appointed as the investor relations officer.
purchased in a scheme of the Mutual Fund would therefore, be exempt from gift-tax.
a 'Liquid fund' has been defined to mean a scheme or plan of a mutual fund which is classified by the Securities He can be contacted at:
and Exchange Board of India as a liquid fund in accordance with the guidelines issued by it in this behalf under the (iii) Investments in Units of the Mutual Fund will rank as an eligible form of investment under section 11(5) of the
Securities and Exchange Board of India Act, 1992 or regulations made thereunder. Act read with Rule 17C of the Income-tax Rules, 1962, for religious and charitable trusts. Address : Mafatlal Centre, 8th Floor, Nariman Point, Mumbai - 400 021.
Under the Act, as and when the Mutual Fund purchases and sells equity shares/units/derivates, it would be required Telephone : 91-22 22817222
Each investor is advised to consult his or her own tax consultant with respect to the specific tax implications
to pay the STT applicable on such purchases / sales to the concerned Recognised Stock Exchange. The current rates arising out of his or her participation in the scheme. Fax : 91-22 6719 8223
of STT have been listed below: For full details, please refer to the Offer Document of the scheme. E-mail : india.investors@jpmorgan.com
Table D The investor complaints received by the Fund are redressed by the investor relations officer of the AMC and DISPL,
Transaction Rate of STT Payable by DAILY NET ASSET VALUE (NAV) PUBLICATION the Registrar. The compliance officer regularly reviews the redressal of complaints for assessing the quality and
The AMC will calculate and disclose the first NAV of the Scheme within a period of 30 days from the closure of the timeliness of the redressal.
Purchase of an equity share in a company / unit of an equity-oriented fund where NFO Period. Subsequently, the NAVs will be calculated on all calendar days and disclosed for every Business Day. The
the transaction is entered into in a recognised stock exchange and the contract is NAV of the Scheme shall be made available at all ISCs of the AMC. The AMC will publish the NAV for each Business UNIT HOLDERS' INFORMATION
settled by actual delivery or transfer of shares / units. 0.125% Purchaser Day in two daily newspapers. The AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) An account statement will be sent by ordinary post / courier / secured electronic mail to each Unit Holder, stating
Sale of an equity share in a company / unit of an equity-oriented fund where the and of the Association of Mutual Funds in India (www.amfiindia.com) by 9.00 pm every Business Day. In case of any the number of Units purchased, not later than 30 days from the close of the NFO Period. For ongoing periods account
transaction is entered into in a recognised stock exchange and the contract is delay, the reasons for such delay would be explained to AMFI. If the NAVs are not available before commencement
settled by actual delivery or transfer of shares / units. 0.125% Seller of business hours on the following Business Day due to any reason, the Fund shall issue a press release providing statement will be sent within 10 working days from allotment.
GENERAL INSTRUCTIONS
1. GENERAL INSTRUCTIONS used to establish identity. It may re-verify identity and obtain any missing or additional not responsible for the e-mail not reaching the investor and for all consequences thereof. rescinded upon the redemption/ transfer/ transmission of units. Transmission of units in favor
(a) The application form should be completed in ENGLISH in BLOCK LETTERS only. information for this purpose. The investor shall from time to time intimate the Fund / its transfer agents about any changes of a Nominee shall be a valid discharge by the asset management company against the legal
(b) Please read the Key Information Memorandum and the Offer Document containing the The AMC, under powers delegated by the Trustee, shall have absolute discretion to reject in the e-mail address. In case of a large document, a suitable link would be provided and heir. The cancellation of nomination can be made only by those individuals who hold units
terms of offer carefully before investing. In the Offer Document your attention is particularly any application, prevent further transactions by a Unit Holder, delay processing redemption investors can download, save and print these documents. However, the unit holder always on their own behalf singly or jointly and who made the original nomination. On cancellation
drawn to the risk factors of investing in the scheme and also the sections "Who cannot as per applicable laws or regulations if has the right to request a physical copy of any shareholder communication and the AMC of the nomination, the nomination shall stand rescinded and the AMC / Mutual Fund / Trustees
invest", "Important note on anti-money laundering, KYC & investor protection" and "How (i) after due diligence, the investor / Unit Holder / a person making the payment on behalf will arrange for the same to be sent to the unit holder. shall not be under any obligation to transmit the units in favor of the Nominee.
to apply". of the investor does not fulfil the requirements of the "Know Your Customer" as determined 7. NOMINATION DETAILS 8. DECLARATION AND SIGNATURE
(c) Please strike out any section that is not applicable. Any cancellation and modification on by the AMC or the AMC believes that the transaction is suspicious in nature as regards Nomination rules are subject to SEBI Regulations/applicable laws. Applicants applying for Units (a) All the applicants must sign in original on the application form. Signatures should be in
any of the mandatory information should be countersigned. money laundering. singly/jointly can make a nomination at the time of initial investment or during subsequent English or in any Indian language. Thumb impressions should be from the left hand for
(d) Please refer to the checklist at the end of these notes to ensure that the requisite details (ii) the AMC determines in its sole discretion that the application does not or will not comply investments. The nomination can be made only by individuals applying for /holding units on males and the right hand for females and in all cases be attested by a Magistrate, Notary
and documents have been provided in order to avoid unnecessary delays and / or rejection with any applicable laws or regulations. their own singly or jointly. Non-individuals including a society, trust, body corporate, partnership Public or Special Executive Magistrate. In case of an HUF (Hindu Undivided Family), the Karta
of your application. In this regard the AMC reserves the right to reject any application and effect a mandatory firm, Karta of Hindu Undivided Family, holder of Power of Attorney cannot nominate. If the will sign on behalf of the HUF.
(e) The original Power of Attorney or a duly notarised copy of the Power of Attorney shall Redemption of Units allotted at any time prior to the expiry of 30 Business Days from the units are held jointly, all joint holders will have to sign the nomination form. A minor can be (b) The original Power of Attorney or a duly notarized copy of the Power of Attorney shall
be required to be submitted where transactions are made under a Power of Attorney. date of the application nominated and in that event, the name and address of the guardian of the minor nominee be required to be submitted where applications are made under a Power of Attorney.
(f) The following documents are to be submitted by a company, body corporate, eligible If the payment for Purchase of Units are made by a third party (e.g. a power of attorney shall be provided by the unit holder. Nomination can also be made in favor of the central
holder, a financing agency, a relative, etc.), the Unit Holder may be required to give such government, state government, a local authority, any person designated by virtue of his office 9. Under the Systematic Investment Plan (SIP), the investor must submit the ECS mandate for
institutions, society, trusts, partnership or other eligible non-individual applicants who apply each month/ quarter.
for units in this scheme: details of such transaction so as to satisfy the AMC of the source and/or consideration or a religious or charitable trust. The Nominee shall not be a trust (other than a religious or
1. Certified copy of resolution or authority to make the application. underlying the transaction. charitable trust), society, body corporate, partnership firm, Karta of Hindu Undivided Family No post-dated cheques will be accepted during the NFO period. The ECS mandate for SIP
(f) For NRI / NRE, please provide copy of cheque leaf or FIRC certificate. or a Power of Attorney holder. A Non-Resident Indian can be a Nominee subject to the exchange will take effect from 1 February 2008. The minimum amount per cheque for the JPMorgan
2. Certified copy of the Memorandum and Articles of Association and / or bye-laws and control regulations in force from time to time. Nomination in respect of the units stands India Smaller Companies Fund under SIP is Rs.1,000/-.
/ or Trust Deed and / or Partnership Deed and certificate of registration or any other 3. BANK ACCOUNT DETAILS
document that may be required by the AMC as the case may be. As per SEBI guidelines, it is mandatory for the Sole / First Applicant to mention his / her CHECKLIST
3. For Trusts / fund, certified true copy of the resolution from the Trustee(s) authorising bank account number in the application form. Applications received without the relevant
such transaction. bank details will be deemed to be incomplete and will be rejected. The AMC and the R&T Please ensure that:
4. The application should be signed under their official designation. (the Registrar and Transfer agent) reserve the right to hold any redemption proceeds in case • Name, address, contact details are mentioned and the signature of ALL applicants is available in the application form.
2. APPLICANT INFORMATION the requisite details are not submitted. The AMC may ask for a copy of a cancelled cheque • Bank account details are filled in completely and correctly (mandatory) including IFSC code.
to verify these details. The AMC will provide direct credit facility with the banks as may • Your preferred option is selected and the investment is not less than the minimum investment amount.
(a) Name and address shall be given in full without any abbreviations. Please provide a copy be available from time to time. Please contact the AMC and R&T for further details. IFSC
of the address proof. • The Permanent Account Number (PAN) for all applicants is mentioned and necessary documents are enclosed, else your application will be rejected.
code is necessary for electronic payouts.
(b) Name of the guardian must be mentioned if the investments are being made on behalf • NRIs need to provide their overseas address (mandatory).
of a minor. Date of birth is mandatory for minors. 4. INVESTMENT DETAILS • Cheques/ DDs are drawn in favour of 'Scheme Name' as applicable, dated and duly signed.
(c) Name of the contact person and e-mail and telephone number should be mentioned in Applicants should indicate the Option (Dividend/Growth) for which the application is made. • Application form number/folio number and applicant's name is mentioned on the reverse of each cheque / DD.
case of investments by a company, body corporate, trust, partnership, society, FII and other In case applicants wish to opt for both the options, separate application forms will have to
be completed for each option. If no indication is given for the investment, the default option • 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
eligible non-individual applicants. Any change in the status of any authorized signatory Secretary / Authorised Signatory.
should be promptly intimated to the AMC. Incomplete application forms are liable to be will be the growth option.
• For documents regarding mariner and PIO or any queries please contact the AMC or ISC.
rejected. 5. MODE OF PAYMENT
(d) Permanent Account Number (PAN) : SEBI has mandated vide Circular dated April 27, Applications can be submitted at the designated collection centers as appended in the KIM. Documents Invidividual Companies Societies Partnership Investments Trusts NRI FIIs
2007 that PAN would be the sole identification number for all participants transacting in Applications can be submitted at the Official Point of Acceptance of the AMC / R & T. Only through POA
the securities market, irrespective of the amount of transaction. Further vide their letter one cheque/DD will be accepted per application form for fresh and additional purchases. Resolution / authorisation to invest 3 3 3 3 3
dated June 25, 2007, SEBI has clarified that existing and potential investors should apply The Mutual Fund and its agents / representatives are not obliged to represent dishonoured List of authorised signatories with specimen signature(s) 3 3 3 3 3
for PAN immediately and all applications for investment should be accompanied with the cheques or inform the investor/investor's agent about such cheques. For investments made Memorandum & Articles of Association 3
evidence of having applied for PAN until December 31, 2007. Thus: through NRE/NRO account, a cheque along with a photocopy of the cheque and the
application form must be submitted to a JPMorgan AMC branch. Payment can be made Trust deed 3
1. PAN is required for all unit holders in the folio, including guardians.
by rupee draft purchased abroad, payable at locations where the application is submitted Bye-laws 3
2. PAN is required for NRI investors also.
to a JPMorgan AMC branch / collection centre. Partnership deed 3
3. For every investment, for every investor, the investor needs to provide:
6. COMMUNICATION Notarised Power of Attorney 3
(i) PAN card copy, or
(ii) acknowledgement copy of PAN application form (Form 49A) JPMorgan Mutual Fund has an online account management service which gives you the For all applications
latest details of your account including your current valuation and information on transactions. a) Proof of PAN 3 3 3 3 3 3 3 3
(iii) Form 60/61 with address proof for applications above Rs. 50,000. The Account Statement, Annual Reports or other information etc. may be sent to unit b) Form 49A or 3 3 3 3 3 3 3 3
The PAN card copy needs to be verified with the original PAN card. Attestation can be done holders by e-mail. If you have an e-mail address you can choose to receive e-mail c) Form 60/61 along with address proof 3 3 3 3 3 3 3 3
by a distributor, a bank manager, a notary, at any of the investor service centres or at any communication from us in lieu of printed documents. Please furnish your e-mail ID and FIRC in case payment is made by DD from NRE / FCNR or where applicable 3 3
JPMorgan office on production of the original copy. indicate the nature of communication you wish to receive over e-mail. When a unit holder Proof of identity 3
(e) Know Your Customer (KYC): The need to "Know Your Customer" is vital for the prevention has communicated his/her e-mail address and has provided consent for sending Proof of address 3 3 3 3 3 3 3 3
of money laundering. The AMC may seek information or obtain and retain documentation communication only via e-mail, the AMC / Mutual Fund / Registrars & Transfer agents are
Application no. D
For office
use
Bajaj Capital /ARN- 0010 88924
2. APPLICANT INFORMATION
Occupation [Please tick (3)] Mode of holding [Please tick (✓)] Status [Please tick (3)]
Agriculture Professional Student Single Individual HUF Company/BC Trust
Business Retired Service Joint Partnership FIIs Bank / FI AOP / BoI
Club/Society NRI / PIO* Minor
Housewife Others _______________ Anyone or survivor Sole proprietor Others (pl. specify) ____________________________
Folio no. (For existing unit holder – unless details in section 2 to 4 have changed, please go directly to section 5.
Note that the applicants details and mode of holding will be as per the existing folio number)
Name of first applicant Date of birth
Mr. Ms. M/s. D D M M Y Y Y Y
PAN no. M A N D A T O R Y Pan proof Form 60 / 61 Form 49A [Mandatory - Please refer to instruction no.2(d)]
Name of guardian (in case of minor) / Contact person (In case of institutional investors) Designation of the contact person (In case of institutional investors)
Mr. Ms.
Name of second applicant
Mr. Ms.
PAN no. M A N D A T O R Y Pan proof Form 60 / 61 Form 49A [Mandatory - Please refer to instruction no.2(d)]
Name of third applicant
Mr. Ms.
PAN no. M A N D A T O R Y Pan proof Form 60 / 61 Form 49A [Mandatory - Please refer to instruction no.2(d)]
Address (Please provide full address) (In case of NRIs/FIIs please provide overseas address - Mandatory P.O. box no. may not be sufficient)
Pin
code M A N D A T O R Y
Overseas address (Please provide full address. P.O. box no. may not be sufficient) (Mandatory for NRIs / FIIs / PIO).
E-mail
I/We would like to receive the following documents through E-mail instead of post (Kindly 3)
Account statement Newsletter Quarterly review & annual report Other statutory information
3. BANK ACCOUNT DETAILS (The application will be rejected if bank account number is left blank. Please provide the details of the sole/first applicant). (Refer instruction no.3)
Bank particulars (Name of the bank) Branch
Branch address
City
Account number Account type
Current Savings NRO NRE FCNR
M A N D A T O R Y
9 digit
Please 3 any one RTGS NEFT IFSC CODE R E Q U I R E D
MICR code
Direct credit facility is available as per instruction no. 3. However, if you wish to receive a cheque payout, please tick here (3)
Electronic Clearing Services (ECS) facility is available for receiving dividends. If you wish to avail of this facility, please tick here (3)
units of JPMorgan India Smaller Companies Fund Option (please tick ✓) : Growth (default) Dividend
Total amount in figures (Rs.) (i) + (ii) Account type (Please 3) SAVINGS CURRENT NRE NRO FCNR
Rupees in words
6B. SYSTEMATIC INVESTMENT PLAN (Refer SIP instruction and terms & conditions)
Frequency (Please 3 Monthly SIP (default) Dates 1st (default) 10th Enrolment period (default 6 instalments)
any one only) Quarterly SIP 15th 25th No. of instalments
Pin code
Name of the guardian (If nominee is minor) Relationship with nominee
Pin code
✄
✄
JPMorgan Mutual Fund
Note: 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, 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, Mafatlal Centre, 8th Floor, Nariman Point, Mumbai 400 021.
E-mail india.investors@jpmorgan.com. Toll free no. 1-800-22-5763 (JPMF). MTNL landline 022 - 2281 7222. Fax no. 022 - 6719 8223.
Registrar & Transfer Agent : Deutsche Investor Services Private Limited, 2nd Floor, Tower 1, Logitech Park, M.V. Road, Saki Naka, Andheri (E), Mumbai 400 072.
Tel. 022 - 6714 6000. Fax 022 - 6714 6902. E-mail investor.jpm@db.com.
graphics
alok
ECS REGISTRATION CUM MANDATE
APPLICATION FORM
(ECS MANDATE FACILITY)
$
SIP Period [for ECS (debit clearing)] Start from 0 2 Y Y End on M M Y Y (default - 6 instalments)
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.
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)
SIGNATURE(S)
SIGNATURE(S)
Please note that investors have to fill out separate application forms for lumpsum and Systematic Minimum amount per cheque for each scheme under MSIP and QSIP is Rs.1,000/-.
Investment Plan investments.
l Total minimum number of cheques/ instalments under MSIP (default) and QSIP is six.
1. SIP is available to investors in JPMorgan India Smaller Companies Fund.
7. All SIP ECS mandates must be dated 1st, 10th, 15th or 25th of a month.
2. The SIP application form should be completed in English and in block letters only. Please tick (tick
mark) in the appropriate circle ( ). The SIP application form, complete in all respects, should be l It may, however, be noted that the first SIP cheque could be of any date, but all subsequent
submitted at any of the Investor Service Centres (ISCs) of Deutsche Investor Services Private Limited mandates should be dated 1st, 10th, 15th or 25th.
as designated by the AMC from time to time. l The first SIP cheque (of any date) and the subsequent mandate should not fall in the same month
3. a. New investors who wish to enroll for SIP are required to fill the scheme application form. New for the MSIP and should not fall in the same quarter for the QSIP.
investors are advised to read the Offer Document of the scheme(s) before investing. The Offer
l For NRI / NRE, please provide copy of cheque leaf or FIRC certificate.
Document / Key Information Memorandum(s) of the scheme(s) is available with the ISCs, brokers/
distributors and also displayed at the JPMorgan Mutual Fund website i.e. www.jpmorganmf.com. 8. Units will be allotted on the above applicable date. In case the date falls on a non-business day
b. New investors need not have an existing folio for investments into respective schemes / options. or falls during a book closure period, the next business day will be considered for the purpose
Such investors can start a folio with a SIP. However, in case of SIP investments an investor can of determining the applicability of NAV subject to the realization of cheques.
enter the scheme(s) with a minimum amount of Rs.1,000/- and in multiples of Re.1 thereafter. 9. Cheques should be drawn in favour of the JPMorgan India Smaller Companies Fund crossed
4. The application is liable to be rejected if any of the following are not provided: "A/c Payee Only". Unit holders must write the application form number, if any, on the reverse
of the cheques accompanying the application forms.
a. Permanent Account Number (PAN) and PAN proof for all applicants.
b. Bank account number. 10. Payment may be made by cheques drawn on any bank which is situated at and is a member of
the bankers' clearing house located at the place where the SIP application is submitted. Outstation
c. FIRC certificate for NRI (or cheque copy). cheques will not be accepted and applications accompanied by such cheques are liable to be
d. Investor name and address. rejected. No cash, money order or postal orders will be accepted. All DD charges will be borne
e. Date of birth of minor. by the AMC.
f. Overseas address for NRI. 11. Return cheques cannot be presented for collection.
g. The application is submitted unsigned. 12. 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. The subsequent account
h. Corporate documents, including Authorised Signatory List (ASL), as applicable.
statements will be despatched once every quarter ending March, June, September and December
Minimum investment is Rs.1,000/-. for SIP investment. within 10 working days of the end of the respective quarter. In the case of a specific request
All SIP investments must be of equal amounts including the first instalment. received from investors, the Mutual Fund will provide the account statement to investors within
5. SIP offers investors the following two Plans: (i) Monthly Systematic Investment Plan (MSIP) (ii) Quarterly five working days from receipt of such a request without any charges. Further, a soft copy of the
Systematic Investment Plan (QSIP). account statement shall be mailed to investors under SIP to their e-mail address on a monthly
basis, if so mandated.
6. Under the Systematic Investment Plan (SIP), the investor must submit the ECS mandate for each month/
quarter. 13. Unit holders will have the right to discontinue the SIP facility at any time by sending a written
request to the ISC or to the AMC. Notice of such discontinuance should be received at least 10
No post-dated cheques will be accepted during the NFO period. The ECS mandate for SIP will take
business days prior to the due date of the next instalment. On receipt of such a request, the
effect from 1 February 2008. The minimum amount per cheque for the JPMorgan India Smaller
SIP facility will be terminated.
Companies Fund under SIP is Rs.1, 000/-.
14. The Trustee reserves the right to change/modify the terms and conditions of the SIP.