PDF Downloads - JP Morgan Asset Management

Highlights / Summary of the SchemeInvestment ObjectiveLiquidityBenchmark for performance comparisonTransparency / NAV DisclosureThe investment objective is to generate income by investing primarily in money market andshort term debt instruments. However, there can be no assurance that income can begenerated, regular or otherwise or that the investment objective of the Scheme will be realised.Units may be purchased or redeemed at NAV subject to applicable loads (if any), on everyBusiness Day on an ongoing basis. The Fund will endeavour to dispatch the Redemptionproceeds within 3 Business Days from the acceptance of the Redemption request; howeverinvestors should be aware that regulatory timelines currently specify 10 Business Days.CRISIL Short-Term Bond Fund IndexThe AMC will calculate and disclose the NAV of the Scheme on every Business Day. The NAV ofthe Scheme shall be made available at all ISCs of the AMC. The AMC will publish the NAV for eachBusiness Day in two daily newspapers.The AMC shall update the NAVs on the website of the Mutual Fund (www.jpmorganmf.com) andthat of the Association of Mutual Funds in India (www.amfiindia.com) by 9.00 pm every BusinessDay. In case of any delay, the reasons for such delay would be explained to AMFI. If the NAVs arenot available before commencement of business hours on the following Business Day due to anyreason, the Mutual Fund shall issue a press release providing reasons and explaining when theMutual Fund would be able to publish the NAVs.The AMC will before the expiry of one month from the close of each half year (i.e. March 31 andSeptember 30) disclose the full portfolio of the Scheme by either sending a complete statementto all the Unit Holders concerned or by publishing such statement, by way of advertisement, inone English daily newspaper having nationwide circulation and in a newspaper published in thelanguage of the region where the head office of the Mutual Fund is situated.The NAV will be calculated in the manner as provided in this Scheme Information Document oras may be prescribed by the SEBI Regulations from time to time. The NAV will be computed uptofour decimal places.Load StructureEntry Load (For Ongoing Offer):NilExit Load (For Ongoing Offer)For each Redemption(% of Applicable NAV)Within six months from the date of allotment in respect of Purchase made other than through SIP: 0.60%Within six months from the date of allotment in respect of each Purchase made through SIP: 0.60%A switch-out or a withdrawal under SWP shall also attract an Exit Loadlike any Redemption.There will be no Load for Units created as a result of dividendreinvestment and bonus Units.No Loads will be chargeable in case of switches made betweendifferent Scheme Options.A maximum of 1% of the redemption proceeds shall bemaintained in a separate account and will be utilized to meetthe distribution and marketing expenses. Any balance shall becredited to the Scheme immediately.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 (1800-200-5763) prior to any application / redemption.4

(a)(b)(c)(d)Credit Risk - this occurs when a counterparty defaults on atransaction before settlement and, therefore, the Scheme iscompelled to negotiate with another counterparty at thethen prevailing (possibly unfavourable) market price, inorder to maintain the validity of the hedge.Market Liquidity Risk - this is where the derivatives cannot besold (unwound) at prices that reflect the underlying assets,rates and indices.Model Risk - this is the risk of mis-pricing or impropervaluation of derivatives.Basis Risk - this is when the instrument used as a hedge doesnot match the movement in the instrument / underlyingasset being hedged. The risks may be inter-related also; fore.g. interest rate movements can affect equity prices, whichcould influence specific issuer / industry assets.d) Risks associated with Short Selling and Securities Lending• The risks in lending portfolio Securities, as with other extensionsof credit, consist of the failure of another party, in this case theapproved intermediary, to comply with the terms of theagreement entered into between the lender of Securities, i.e. theScheme, and the approved intermediary. Such failure to complycan result in a possible loss of rights in the collateral put up by theborrower of the Securities, the inability of the approvedintermediary to return the Securities deposited by the lender andthe possible loss of any corporate benefits accruing to the lenderfrom the Securities deposited with the approved intermediary.The Mutual Fund may not be able to sell such Securities and thiscan lead to temporary illiquidity.e) Risks associated with Overseas Investment• Subject to necessary approvals, in terms of all applicableguidelines issued by SEBI and RBI from time to time and within theinvestment objectives of the Scheme, the Scheme may invest inoverseas markets which carry risks related to fluctuations in theforeign exchange rates, the nature of the securities market of thecountry, restrictions on repatriation of capital due to exchangecontrols and the political environment. Further the repatriation ofcapital to India may also be hampered by and changes inRegulations or political circumstances. In addition, country riskswould include events such as introduction of extraordinaryexchange controls, economic deterioration, bi-lateral conflictlending to immobilization of overseas financial assets and theprevalent tax laws of the respective jurisdiction for the executionof trades or otherwise.Currency Risk:• The foreign securities are issued and traded in foreign currencies.As a result, their values may be affected by changes in theexchange rates between foreign currencies and the IndianRupees as well as between currencies of countries other thanIndia. Restrictions on currency trading that may be imposed bydeveloping market countries will have an adverse effect on thevalue of the securities of companies that trade or operate in suchcountries.f) Risks associated with investing in Securitised Debts• Generally available asset classes for securitisation in India:• Commercial vehicles• Auto and two wheeler pools• Mortgage pools (residential housing loans)• Personal loan, credit card and other retail loans• Corporate loans / receivablesIn terms of specific risks attached to securitisation, each assetclass would have different underlying risks, however, residentialmortgages typically have lower default rates as an asset class. Onthe other hand, repossession and subsequent recovery ofcommercial vehicles and other auto assets is normally easier andbetter compared to mortgages. Some of the asset classes such aspersonal loans, credit card receivables etc., being unsecuredcredits in nature, may witness higher default rates. As regardscorporate loans / receivables, depending upon the nature of theunderlying security for the loan or the nature of the receivable therisks would correspondingly fluctuate. However, the creditenhancement stipulated by rating agencies for such asset classpools is typically much higher and hence their overall risks arecomparable to other AAA or equivalent rated asset classes.Some of the factors, which are typically analyzed for any pool,are as follows:Size of the loan: this generally indicates the kind of assetsfinanced with loans. Also indicates whether there is excessivereliance on very small ticket size, which may result in difficult andcostly recoveries. To illustrate, the ticket size of housing loans isgenerally higher than that of personal loans. Hence in theconstruction of a housing loan asset pool for say Rs. 1,00,00,000/-it may be easier to construct a pool with just 10 housing loans ofRs. 10,00,000/- each rather than to construct a pool of personalloans as the ticket size of personal loans may rarely exceed Rs.5,00,000/- per individual.Average original maturity of the pool: this indicates the originalrepayment period and whether the loan tenors are in line withindustry averages and borrower's repayment capacity. Toillustrate, in a car pool consisting of 60 month contracts, theoriginal maturity and the residual maturity of the pool viz.number of remaining instalments to be paid gives a better idea ofthe risk of default of the pool itself. If in a pool of 100 car loanshaving original maturity of 60 months, more than 70% of thecontracts have paid more than 50% of the monthly instalmentsand if no default has been observed in such contracts, this poolshould have a lower probability of default than a similar car loanpool where 80% of the contracts have not yet paid 5 instalments.LTV: indicates how much of the value of the asset is financed by8

orrower's own equity. The lower the LTV, the better it is. This ratiostems from the principle that where the borrower's owncontribution of the asset cost is high, the chances of default arelower. To illustrate: for a truck costing Rs. 20 lakhs, if the borrowerhas himself contributed Rs. 10 lakhs and has taken Rs. 10 lakhs asa loan, he is going to have lesser propensity to default as he wouldlose an asset worth Rs. 20 lakhs if he defaults in repaying aninstalment. This is as against a borrower who may meet only Rs. 2lakhs out of his own equity for a truck costing Rs. 20 lakhs.Between the two scenarios given above, as the borrower's ownequity is lower in the latter case, it would typically have a higherrisk of default than the former.Average seasoning of the pool: this indicates whether borrowershave already displayed repayment discipline. To illustrate, in thecase of a pool of personal loans, if a pool of assets consist ofborrowers who have already repaid 80% of the instalmentswithout default, the probability of default is lower than for a poolwhere only 10% of instalments have been repaid.Default rate distribution: this indicates how much % of the pooland overall portfolio of the originator is current, how much is in 0-30 DPD (days past due), 30-60 DPD, 60-90 DPD and so on. Therationale here is that, as against 0-30 DPD, the 60-90 DPD is ahigher risk category. Unlike in plain vanilla instruments, insecuritisation transactions it is possible to work towards a targetcredit rating, which could be much higher than the originator'sown credit rating.In the Indian scenario, also, more than 95% of issuances havebeen AAA or equivalent rated issuances indicating the strength ofthe underlying assets as well as adequacy of credit enhancement.Investment exposure of the Fund with reference toSecuritised Debt:• The Scheme will predominantly invest only in thosesecuritisation issuances which have AAA or equivalent ratingindicating the highest level of safety from credit risk point ofview at the time of making an investment. The Scheme willnot invest in foreign securitised debt.• The Scheme may invest in various types of securitizationissuances, including but not limited to asset backedsecuritisation, mortgage backed securitisation, personalloan backed securitisation, collateralised loan obligation /collateralized bond obligation and so on.• The Scheme does not propose to limit its exposure to onlyone asset class or to have asset class based sub-limits as itwill primarily look towards the AAA or equivalent rating ofthe offering.• The Scheme will conduct an independent due diligence onthe cash margins, collateralisation, guarantees and othercredit enhancements and the portfolio characteristic of thesecuritisation to ensure that the issuance fits into the overallobjective of the investment in high investment gradeofferings irrespective of underlying asset class.g) Risks associated with investing in Securitised Papers• Types of securitised debt vary and carry different levels and typesof risks. Credit risk on securitised bonds depends upon theoriginator and varies depending on whether they are issued withrecourse to the originator or otherwise. Even within securitiseddebt, AAA or equivalent rated securitised debt offers lesser risk ofdefault than AA rated securitised debt. A structure with recoursewill have a lower credit risk than a structure without recourse.• As underlying assets in securitised debt may assume differentforms and the general types of receivables include auto finance,credit cards, home loans or any such receipts, credit risks relatingto these types of receivables depend upon various factorsincluding macro economic factors of these industries andeconomies. Specific factors like nature and adequacy of propertymortgaged against these borrowings, nature of loan agreement /mortgage deed in case of home loan, adequacy of documentationin case of auto finance and home loans, capacity of borrower tomeet its obligation on borrowings in case of credit cards and theintention of the borrower influence the risks relating to the assetborrowings underlying the securitised debt.• Changes in market interest rates and pre-payments may notchange the absolute amount of receivables for the investors, butmay have an impact on the reinvestment of the periodic cashflows that the investor receives in the securitised paper.• Limited Liquidity & Price Risk:Presently, the secondary market for securitised papers is not veryliquid. There is no assurance that a deep secondary market willdevelop for such securities. This could limit the ability of the Fundto resell them. Even if a secondary market develops and saleswere to take place, these secondary transactions may be at adiscount to the initial issue price due to changes in the interestrate structure.• Risks due to possible prepayments: Weighted Tenor / Yield:Asset securitisation is a process whereby commercial orconsumer credits are packaged and sold in the form of financialinstruments. Full prepayment of underlying loan contract mayarise under any of the following circumstances:• obligor pays the receivable due from him at any time prior tothe scheduled maturity date of that receivable; or• receivable is required to be repurchased by the sellerconsequent to its inability to rectify a materialmisrepresentation with respect to that receivable; or• the servicer recognizing a contract as a defaulted contractand hence repossessing the underlying asset and selling thesame.• In the event of prepayments, investors may be exposed tochanges in tenor and yield.9

• Bankruptcy of the originator or seller:If the originator becomes subject to bankruptcy proceedings andthe court in the bankruptcy proceedings concludes that the salefrom originator to the Trust was not a sale then the Fund couldexperience losses or delays in the payments due. All possible careis generally taken in structuring the transaction so as to minimizethe risk of the sale to the Trust not being construed as a “TrueSale”. Legal opinion is normally obtained to the effect that theassignment of receivables to the Trust in trust for and for thebenefit of the investors, as envisaged herein, would constitute atrue sale.• Bankruptcy of the investor's agent:If an investor's agent becomes subject to bankruptcy proceedingsand the court in the bankruptcy proceedings concludes that therecourse of the investor's agent to the assets / receivables is notin its capacity as agent / Trustee but in his personal capacity, thenan investor could experience losses or delays in the payments dueunder the swap agreement. All possible care is normally taken instructuring the transaction and drafting the underlyingdocuments so as to provide that the assets / receivables if andwhen held by an investor's agent is held as agent and in Trust forthe Investors and shall not form part of the personal assets of theinvestor's agent. Legal opinion is normally obtained to the effectthat the investors agent's recourse to assets / receivables isrestricted in his capacity as agent and trustee and not in itspersonal capacity.• Credit Rating of the Transaction / Certificate:The credit rating is not a recommendation to purchase, hold orsell the Certificate in as much as the ratings do not comment onthe market price of the Certificate or its suitability to a particularinvestor. There is no assurance by the rating agency either thatthe rating will remain at the same level for any given period oftime or that the rating will not be lowered or withdrawn entirely bythe rating agency.• Risk of Co-mingling:The servicers normally deposit all payments received from theobligors into the collection account. However, there could be atime gap between collection by a servicer and depositing thesame into the collection account especially considering that someof the collections may be in the form of cash. In this interimperiod, collections from the loan agreements may not besegregated from other funds of the servicer. If the servicer fails toremit such funds, due to investors, the investors may be exposedto a potential loss. Due care is normally taken to ensure that theservicer enjoys the highest credit rating on a standalone basis tominimize co-mingling risk.h) Risks associated with investing in Government of India (“GoI”)SecuritiesMarket Liquidity risk with fixed rate GoI Securities: Even thoughthe GoI Securities market is more liquid compared to other debtinstruments, on certain occasions, there could be difficulties intransacting in the market due to extreme volatility leading toconstriction in market volumes. Also, liquidity of the Scheme maysuffer in case the relevant guidelines issued by RBI undergo anyadverse changes.Interest Rate risk associated with GoI Securities: While GoISecurities carry minimal credit risk since they are issued by theGovernment of India, they do carry price risk depending upon thegeneral level of interest rates prevailing from time to time.Generally, when interest rates rise, prices of fixed incomeSecurities fall and when interest rates decline, the prices of fixedincome Securities increase. The extent of fall or rise in the prices isa function of the coupon rate, days to maturity and the increase ordecrease in the level of interest rates. The price-risk is not uniqueto GoI Securities. It exists for all fixed income securities.Therefore, their prices tend to be influenced more by movementin interest rates in the financial system than by changes in theGovernment's Credit Rating. By contrast, in the case of corporateor institutional fixed income Securities, such as bonds ordebentures, prices are influenced by their respective creditstanding as well as the general level of interest rates.Risks associated with floating rate GoI Securities: Floating rateSecurities issued by the Government (coupon linked to Treasurybill benchmark or an inflation linked bond) have the leastsensitivity to interest rate movements compared to otherSecurities. Some of these Securities are already in issue. TheseSecurities can play an important role in minimising interest raterisk in a portfolio.B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEMEThe Scheme shall have a minimum of 20 (twenty) investors and nosingle investor shall account for more than 25% of the corpus ofthe Scheme. However, if such limit is breached during the NFO ofthe Scheme, the Mutual Fund will endeavour to ensure that withina period of 3 (three) months or the end of the succeeding calendarquarter from the close of the NFO of the Scheme, whichever isearlier, the Scheme complies with these two conditions. In casethe Scheme does not have a minimum of 20 (twenty) investors inthe stipulated period, the provisions of Regulation 39(2)(c) of theSEBI (MF) Regulations would become applicable automaticallywithout any reference from SEBI and accordingly the Schemeshall be wound up and the Units would be redeemed at ApplicableNAV. The two conditions mentioned above shall also be compliedwithin each subsequent calendar quarter thereafter, on anaverage basis, as specified by SEBI. If there is a breach of the 25%limit by any investor over the quarter, a rebalancing period of 1(one) month would be allowed and thereafter the investor who is10

in breach of the rule shall be given 15 (fifteen) days notice toredeem his exposure over the 25% limit. Failure on the part of thesaid investor to redeem his exposure over the 25% limit within theaforesaid 15 (fifteen) days would lead to automatic Redemption bythe Mutual Fund at the Applicable NAV on the 15th day of thenotice period without any exit load. The Mutual Fund shall adhereto the requirements prescribed by SEBI from time to time in thisregard.C. SPECIAL CONSIDERATIONS, if any• The Sponsor is not responsible or liable for any loss resulting fromthe operation of the Scheme beyond the initial contribution of anamount of Rs. 1,00,000 (Rupees One Lakh) made by it towardssetting up the Mutual Fund or such other accretions and additionsto the initial corpus set up by the Sponsor. The associates of theSponsor are not responsible or liable for any loss or shortfallresulting from the operation of the Scheme.• Neither this SID nor the Units have been filed / registered in anyjurisdiction other than India. The distribution of this SID in certainjurisdictions may be restricted or totally prohibited andaccordingly, persons who come into possession of this SID arerequired to inform themselves about, and to comply with, anysuch restrictions.• Before making an application for Units, prospective investorsshould review / study this SID and the SAI carefully and in theirentirety and should not construe the contents hereof or regardthe summaries contained herein as advice relating to legal,taxation, or financial / investment matters. Investors shouldconsult their own professional advisor(s) as to the legal, tax orfinancial implications resulting from –(i)(ii)Subscription, gifting, acquisition, holding, disposal (by wayof sale, switch or Redemption or conversion into money) ofUnits andTo the treatment of income (if any), capitalisation, capitalgains, any distribution, and other tax consequences relevantto their Subscription, acquisition, holding, capitalisation,disposal (by way of sale, transfer, switch, Redemption orconversion into money) of Units within their jurisdiction orunder the laws of any jurisdiction to which they may besubject to possible legal, tax, financial or otherconsequences.• Neither the Mutual Fund nor the AMC nor the Sponsor haveauthorized any person to give any information or make anyrepresentations, either oral or written, not stated in this SID inconnection with issue of Units under the Scheme. Prospectiveinvestors are advised not to rely upon any information orrepresentations not incorporated in this SID as the same have notbeen authorised by the Mutual Fund, the AMC or the Sponsor. AnySubscription or Redemption made by any person on the basis ofstatements or representations which are not contained in this SIDor which are inconsistent with the information contained hereinshall be solely at the risk of the investor.• From time to time, funds managed by the affiliates / associates ofthe Sponsor may invest either directly or indirectly in the Scheme.The mutual funds managed by these affiliates /associates mayacquire a substantial portion of the Units and collectivelyconstitute a major investment in the Scheme. Accordingly,Redemption of Units held by such affiliates /associates may havean adverse impact on the value of the Units of the Schemebecause of the timing of any such Redemption and may affect theability of other Unit Holders to redeem their respective Units.• As the liquidity of the Scheme's investments may sometimes berestricted by trading volumes and settlement periods, the timetaken by the Mutual Fund for Redemption of Units may besignificant in the event of an inordinately large number ofRedemption requests or of a restructuring of the Scheme'sportfolio. In view of this, the Trustee has the right, in its solediscretion, to limit Redemptions under certain circumstances.(Please also refer to Section III – B - 'Right to limit Redemption')• Mutual Funds invest in Securities which may not always beprofitable and there can be no guarantee against loss resultingfrom investing in the Scheme.• The tax benefits described in this SID are as available under theprevailing taxation laws. Investors / Unit Holders should be awarethat the relevant fiscal rules or their interpretation may change.As is the case with any investment, there can be no guarantee thatthe tax position or the proposed tax position prevailing at the timeof an investment in the Scheme will endure indefinitely. In view ofthe individual nature of tax consequences, each Unit Holder isadvised to consult his / her / their own professional tax advisor.• The Scheme's value may be impacted by fluctuations in the bondmarkets, fluctuations in interest rates, prevailing political,economic and social environments, changes in governmentpolicies and other factors specific to the issuer of the securities,tax Laws, liquidity of the underlying instruments, settlementperiods, trading volumes etc.• Redemptions due to a change in the fundamental attributes of theScheme or due to any other reason may entail tax consequences.Such tax shall be borne by the investor and the Mutual Fund shallnot be liable for any tax consequences that may arise.Investors are advised to refer to the terms and conditions of the offerbefore investing in the Scheme, and to retain this SID and SAI for futurereference.11

D. DEFINITIONSIn this SID, except where the context otherwise requires, the following capitalized words and expressions shall have the following meaning:Act The Income-tax Act, 1961 (43 of 1961)ADRAmerican Depository ReceiptAMFIAssociation of Mutual Funds in IndiaApplicable NAVFor Purchase:a. Where the application is received up to 3.00 pm on a Business Day with a local cheque or demand draft payable at parat the place where it is received, with amount less than Rs. 1 Crore. - Closing NAV of the day of receipt of application;b. Where the application is received after 3.00 pm on a Business Day with a local cheque or demand draft payable at parat the place where it is received, with amount less than Rs. 1 Crore. - Closing NAV of the next Business Day;c. Where the application is received with a local cheque or demand draft payable at par at the place where it is received,with amount equal to or more than Rs. 1 Crore irrespective of the time of receipt of application, the closing NAV of theday on which the funds are available for utilisation shall be applicable.Applicability of NAV for the Scheme with an amount equal to or more than Rs. 1 crore:a) For allotment of units in respect of purchase in the Scheme, the following needs to be complied with:i. Application is received before the applicable cut-off time.ii. Funds for the entire amount of subscription/purchase as per the application are credited to the bank account ofthe respective Scheme before the cutoff time.iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intradayor otherwise, by the respective Scheme.b) For allotment of units in respect of switch-in to the Scheme from other schemes, the following needs to be compliedwith:i. Application for switch-in is received before the applicable cut-off time.ii. Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bankaccount of the respective switch-in Scheme before the cutoff time.iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intradayor otherwise, by the respective switch-in Scheme or Plans thereunder.The above will be applicable only for cheques / demand drafts / payment instruments payable locally in the city in which aDesignated Collection Center is located. No outstation cheques will be accepted.Note: For the avoidance of doubt, where applications are received for an amount of less than Rs. 1 Crore on a Non-Business Day the closing NAV of the next Business Day shall be applicable.For Redemption:a. Where the application is received up to 3.00 pm on a Business Day - Closing NAV of the day of receipt ofapplication; andb. Where the application is received after 3.00 pm on a Business Day - Closing NAV of the next Business Day.Note: In case of applications received on a Non-Business Day the closing NAV of the next Business Day shall be applicable.12

Application FormARNA form to be used by an investor to open a folio and Purchase Units in the Scheme. Anymodifications to the Application Form will be made by way of an addendum issued by which willbe attached thereto. On issuance of such addendum, the Application Form will be deemed to beupdated by the addendum.AMFI Registration NumberAsset Management Company / AMC JPMorgan Asset Management India Private Limited set up under the Companies Act, 1956,having its registered office at J.P. Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz - East,Mumbai – 400 098 and authorised by SEBI to act as an asset management company /investment manager to the schemes of JPMorgan Mutual Fund.BoardBoard of DirectorsBSEBusiness DayBombay Stock Exchange LimitedA day other than (i) Saturday or Sunday and / or (ii) a day on which any of the principal stockexchanges on which the Investments are traded is closed, and / or (iii) a day on which the RBI orbanks in Mumbai, India are closed for business, and / or (iv) a day on which the AMC's offices inMumbai, India are closed for business, and / or (v) a book closure period as may be announcedby the Trustees / AMC and / or (vi) a day on which normal business cannot be transacted due tostorms, floods, bandhs, strikes or such other events as the AMC may determine from time totime.The AMC, with the approval of the Trustees of the Fund, reserves the right to change thedefinition of Business Day, in accordance with applicable regulations. The AMC reserves theright to declare any day as a Business Day or otherwise at any or all Investor Service Centres(ISCs).CDSLCentral Depository Services (India) Limited.CustodianCut-off timeDebt Security (ies)Designated Collection CentersDeutsche Bank AG, registered under the SEBI (Custodian of Securities) Regulations, 1996, or anyother custodian who is approved by the Trustee.A time prescribed in this SID up to which an investor can submit a Purchase / Redemptionrequest along with a local cheque or a demand draft payable at par at the place where theapplication is received / redemption to be entitled to the Applicable NAV for that Business Day.Debt and debt-related instruments.During the Ongoing Offer: AMC's offices and ISCs designated by the AMC where theapplications shall be received.The names and addresses of the Designated Collection Centers are mentioned at the end of thisSID.ECSEntry LoadExit LoadForeign Institutional Investors / FIIFund of Funds / FOFElectronic Clearing SystemA Load charged to an investor on Purchase of Units based on the amount of investment or perany other criteria decided by the AMC. As per current MF Regulations, the AMC is prohibitedfrom charging an Entry Load.A Load charged to the Unit Holder on exiting (by way of Redemption or switch out) based onperiod of holding, amount of investment, or any other criteria decided by the AMC.An entity registered with SEBI under Securities and Exchange Board of India (ForeignInstitutional Investors) Regulations, 1995, as amended from time to time.A mutual fund scheme that invests primarily in other schemes of the same mutual fund or othermutual funds.13

Fund Manager(s)GDRGoI Security(ies)GSecHUFInvestmentIMAInvestor Service Centers (ISC)JPMorgan Asset Management (Asia) Inc.JPMorgan ChaseKey Information Memorandum (KIM)LawsLTVMIBORMutual FundThe fund managers of the AMC responsible for managing the Scheme.Global Depository ReceiptGovernment of India Security(ies)Government SecuritiesHindu Undivided FamilyAny investments, cash, negotiable instruments, Securities or bullion for the time being and fromtime to time forming part of the Scheme's assets.The agreement dated December 6, 2006 entered into between JPMorgan Mutual Fund IndiaPrivate Limited and the AMC, as amended from time to time.Official points of acceptance of transaction / service requests from investors. These will bedesignated by the AMC from time to time.The Sponsor or Settler of the Mutual Fund having its corporate office at 270, Park Avenue, NewYork, USA .JPMorgan Chase & Co. and any company within the JPMorgan Chase group of companies.A memorandum containing the key information of the Scheme, the format of which is prescribedin the circular dated May 23, 2008, or as further prescribed by SEBI from time to time.The laws of India, the Regulations and any other applicable regulations for the time being inforce in India including guidelines, directions and instructions issued by SEBI, the government ofIndia or RBI from time to time for regulating mutual funds generally or the Mutual Fundparticularly.Loans to Value ratioMumbai Inter-Bank Offer RateJPMorgan Mutual Fund, a trust registered with SEBI under the Regulations, vide Registration No.MF053/07/01 dated February 8, 2007.Net Asset Value / NAVNEFTNew Fund Offer / NFONet asset value of the Units of the Scheme (including options thereunder) calculated in themanner provided in this SID or as may be prescribed by the SEBI Regulations from time to time.The offer for Purchase made to the investors during the NFO Period.New Fund Offer Period / NFO Period The period being 18th March 2010 till 23rd March 2010.Non Resident Indian / NRINSDLNational Electronic Funds Transfer.A person resident outside India who is a citizen of India or is a Person of Indian Origin as per themeaning assigned to the term under the Foreign Exchange Management (Deposit) Regulations,2000.National Securities Depository Limited.NSEOngoing OfferOngoing Offer PeriodPANPerson of Indian Origin / PIONational Stock Exchange of India Limited.Offer of Units when it becomes open ended after the closure of the NFO Period.The period during which the Ongoing Offer for subscription to the Units is made.Permanent Account NumberA citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indianpassport; or (b) he, or either of his parents or any of his grandparents, was a citizen of India byvirtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is aspouse of an Indian citizen or a person referred to in sub-clause (a) or (b).14

PlanPoAPurchasePurchase PriceRe. / Rs.Registrar and Transfer AgentRedemptionRedemption PriceRegulatory AgenciesRBIRTGSSchemeScheme Information Document (SID)Scheme OptionsSEBISEBI ActSEBI Regulations / RegulationsSecurity (ies)SponsorStatement of Additional Information (SAI)SubscriptionSystematic Investment Plan (SIP)Systematic Transfer Plan (STP)Means any plan formulated in accordance with this Scheme.Power of AttorneySubscription to / Purchase of Units by an investor of the Scheme.The price (being Applicable NAV) at which the Units can be purchased and calculated in themanner provided in this SID.Indian Rupee(s)Computer Age Management Services Private Limited, having their registered office at New No.10, Old No. 178, M.G.R. Salai, Nungambakkam, Chennai-600 034, registered under the SEBI(Registrar to an Issue and Share Transfer Agent) Regulations, 1993, appointed as the registrarand transfer agent for the Mutual Fund, or any other registrar that my be appointed by the AMCfrom time to time.Repurchase of Units by the Mutual Fund from a Unit Holder.The price (being Applicable NAV minus Exit Load) at which the Units can be redeemed andcalculated in the manner provided in this SID.SEBI and any other governmental or regulatory bodies to which the Trustee and/or the MutualFund and / or the AMC (as the case may be) is subject.Reserve Bank of IndiaReal Time Gross SettlementJPMorgan India Short Term Income Fund (including as the context permits, the optionsthereunder).This document issued by JPMorgan Mutual Fund, for inviting subscription to Units as amendedfrom time to time. Any modifications to the SID will be made by way of an addendum which willbe attached to the SID. On issuance of the addendum, the SID will be deemed to be updated bythe addendum.The Scheme offers two options – growth option and dividend option. The dividend option offersweekly, fortnightly and monthly dividend reinvestment options and monthly dividend payout.The Securities and Exchange Board of India established under the Securities and ExchangeBoard of India Act, 1992.The Securities and Exchange Board of India Act, 1992, as amended from time to time.Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended fromtime to time, including by way of circulars or notifications issued by SEBI.As defined under Section 2(h) of the Securities Contracts (Regulation) Act, 1956 of India; and alsoincludes shares, stocks, bonds, debentures, warrants, instruments, obligations, money marketinstruments, debt instruments or any financial or capital market instrument of whatsoevernature made or issued by any statutory authority or body corporate, incorporated or registeredby or under any law; or any other Securities, assets or such other investments as may bepermissible from time to time under the SEBI Regulations.JPMorgan Asset Management (Asia) Inc.The Statement of Additional Information (SAI) contains details of the Mutual Fund, itsconstitution, and certain tax, legal and general information. It is incorporated by reference (islegally a part of the SID).Purchase of this units (or a fraction thereof) by an investor of the scheme.A plan enabling investors to invest in the Scheme on a fortnightly / monthly / quarterly / yearlybasis by submitting post-dated cheques / payment instructions.A plan enabling Unit Holders to transfer fixed amounts from their Unit accounts in the Scheme toother schemes launched by the Mutual Fund on a monthly or quarterly basis by giving a singleinstruction.15

Systematic Withdrawal Plan / SWPTransaction SlipA plan enabling Unit Holders to withdraw amounts from the Scheme on a monthly or quarterlybasis by giving a single instruction.A form meant to be used by Unit Holders seeking additional Purchase or Redemption of Units inthe Scheme, change in bank account details, switch-in or switch-out and such other facilitiesoffered by the AMC and mentioned on that form.Trustee JPMorgan Mutual Fund India Private Limited, a company set up under the Companies Act 1956,to act as the Trustee Company to the Mutual Fund.Trust DeedTrust PropertyUnitThe Trust Deed dated December 4, 2006 made by and between the Sponsor and the Trustee,establishing the JPMorgan Mutual Fund, as amended from time to time.Amounts settled / contributed by the Sponsor towards the corpus of the Mutual Fund and allother contributions in cash or in kind, additions and accretions to the Mutual Fund; the UnitCapital; and any other investments for the time being representing the same and incomethereof and include properties of any kind whatsoever or any part thereof to which the samemay be converted from time to time.The interest of an investor in the Scheme consisting of each Unit representing one undividedshare in the assets of the Scheme; and includes any fraction of a Unit which shall represent thecorresponding fraction of one undivided share in the assets of the Scheme.Unit CapitalUnit HolderWords and expressions used in thisSID and not definedThe aggregate of the face value of the Units.Any registered holder for the time being, of a Unit offered under this SID including personsjointly registered.Has the same meaning as in the Trust Deed or the SEBI Regulations or, in the appropriatecontext, as in the SEBI Act.• Words in singular include the plural and vice versa.• Pronouns having a masculine or feminine gender shall be deemed to include the other.• All references to "Rs." refer to Indian Rupees and "US$" refer to United States dollars. A"Crore" means "ten million" and a "Lakh" means a "hundred thousand".• All references to timings (i.e. a.m. or p.m.) relate to Indian Standard Time ('IST') andreferences to a day relate to a calendar day including Non-Business Day.E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANYThe AMC confirms that:(i) The Scheme Information Document of JPMorgan India Short TermIncome Fund, forwarded to SEBI is in accordance with the SEBIRegulations and the guidelines and directives issued by SEBI fromtime to time.(ii)All legal requirements connected with the launching of theScheme as also the guidelines, instructions, etc., issued by thegovernment and any other competent authority in this behalf,have been duly complied with.(iii) The disclosures made in this Scheme Information Document aretrue, fair and adequate to enable the investors to make a wellinformed decision regarding investment in the proposed scheme.(iv) The intermediaries named in the Scheme Information Documentand Statement of Additional Information are registered with SEBIand their registration is valid, as on date.For JPMorgan Asset Management India Private LimitedPlace : Mumbai Name: Yash KumarDate : April 30, 2012 Designation: Head Compliance & MonitoringNote : The Due Diligence Certificate as stated above was submitted toSEBI on December 24, 2009.II. INFORMATION ABOUT THE SCHEMEA. TYPE OF THE SCHEME – An Open-ended Income SchemeB. INVESTMENT OBJECTIVE OF THE SCHEMEThe investment objective is to generate income by investing primarilyin money market and short term debt instruments.However, there canbe no assurance that income can be generated, regular or otherwise orthat the investment objective of the Scheme will be realised.C. ASSET ALLOCATION BY THE SCHEMEUnder normal circumstances, it is anticipated that the asset allocationshall be as follows:16

Instruments Indicative Risk profileallocation(% of net assets)Money market and *Debt 65 - 100% Lowinstruments includinggovernment securities withmaturity / average maturity /residual maturity / interestrate reset not greaterthan 1 year.*Debt instruments with 0 - 35% Low to Mediummaturity / average maturity /residual maturity / interestrate reset greater than 1 year.*Debt Instruments include securitised debt. Securitised debt can be upto 50% of the net assets. Investment in Derivatives - Gross exposure upto 50% of the net asset of the Scheme.Floating rate debt instrumentsare debt instruments issued by Central / State Governments,corporates, PSUs, etc. with interest rates that are reset periodically.The periodicity of interest reset could be daily, monthly, quarterly, halfyearly, and annually or any other periodicity that may be mutuallyagreed between the issuer and the Fund. The Scheme shall not investin foreign securitised debt.Money market instruments include commercial papers, commercialbills, treasury bills, Collateralised Borrowing and Lending Obligations(CBLO), Government Securities having an unexpired maturity up to oneyear, call or notice money, certificates of deposit, usance bills and anyother like instruments as specified by the RBI from time to time.The Scheme can invest up to 50% of net assets in foreign securities.The cumulative gross exposure through equity, debt and derivativepositions should not exceed 100% of the net assets of the Scheme.Cash or cash equivalents with residual maturity of less than 91 days willbe treated as not creating any exposure. The Scheme shall not engagein stock lending. The scheme will not take any leverage position inderivatives. The total investment in debt securities and gross exposurein derivatives, if any, shall not exceed the net assets of the scheme.However, the Scheme can borrow in accordance with SEBI Guidelines.The Scheme retains the flexibility to invest across all securities in thedebt and money market instruments. The Scheme may also invest inunits of debt and liquid Mutual Fund schemes.The endeavour of the scheme is to maintain the modified duration in arange of 1-3 years depending upon interest rate view. However, this canundergo a change in case the market condition warrant and accordingto Fund Manager's view.D. SCHEME'S INVESTMENTThe Scheme may invest in the following asset classes:(a) Money market instruments (money market instruments includecommercial papers, commercial bills, treasury bills, GovernmentSecurities having an unexpired maturity up to one year, call ornotice money, certificates of deposit, usance bills and any other17like instruments as specified by the RBI from time to time);(b) Debt instruments issued by Central / State Governments,corporates, PSUs, etc. with interest rates that are resetperiodically. The periodicity of interest reset could be daily,monthly, quarterly, half yearly, and annually or any otherperiodicity that may be mutually agreed between the issuer andthe Fund;(c) Any other Securities / asset class / instruments as permitted underthe SEBI Regulations.The Scheme shall not:(a) invest in foreign securitized debt; and(b) engage in stock lending and borrowing.Change in Investment PatternSubject to the SEBI Regulations, the asset allocation pattern indicatedabove may change from time to time, keeping in view marketconditions, market opportunities, applicable regulations and politicaland economic factors. It must be clearly understood that thepercentages stated above are only indicative and not absolute and thatthey can vary substantially depending upon the perception of theInvestment Manager, the intention being at all times to seek to protectthe interests of the Unit holders. Such changes in the investmentpattern will be for short term and defensive considerations and withthe intention of protecting the interests of the Unit Holders. In theevent of deviations, rebalancing will normally be carried out within 30Business Days.Subject to the above, any change in the asset allocation affecting theinvestment profile of the Scheme shall be effected only in accordancewith the provisions of sub regulation (15A) of Regulation 18 of the SEBIRegulations, as detailed later in this document.E. INVESTMENT STRATEGIESThe domestic debt markets are maturing rapidly with liquidityemerging in various debt segments through the introduction of newinstruments and investors. The objective will be to allocate the assetsof the Scheme between various money market and fixed incomeSecurities with the objective of providing liquidity and achievingoptimal returns.The actual percentage of investment in various money market andother fixed income Securities will be decided after considering theeconomic environment including interest rates and inflation, theperformance of the corporate sector and general liquidity and otherconsiderations in the economy and markets.The investment team of the AMC will carry out rigorous in depth creditevaluation of the money market and debt instruments proposed to beinvested in. The credit evaluation includes a study of the operatingenvironment of the issuer, the past track record as well as the futureprospects of the issuer and the short term / long term financial healthof the issuer.The portfolio duration will undergo a change according to the expectedmovement in interest rates. Liquidity conditions and other macroeconomicfactors affecting interest rates shall be taken into accountfor varying the portfolio duration. Under normal circumstances, if theinterest rates move down, the duration of the portfolio shall beincreased and vice versa.

The Investment Manager may review the pattern of investments basedon views on interest rates and asset liability management needs.At present, JPMorgan Mutual Fund has 4 open-ended debt schemes -JPMorgan India Liquid Fund, JPMorgan India Treasury Fund, JPMorganIndia Active Bond Fund and JPMorgan India Short Term Income Fund.JPMorgan India Liquid Fund holds a portfolio which has a residualmaturity of not more than 91 days. JPMorgan India Treasury Fundholds a portfolio which has a residual maturity of around 3-6 months.JPMorgan India Active Bond Fund holds a portfolio which has a residualmaturity of around 7-10 years. JPMorgan India Short Term IncomeFund holds a portfolio which has a residual maturity of around 1-3years.Position of Debt Markets in IndiaThe debt market in India is well developed. The largest market consistsof daily trading of the Government of India Securities which exceed Rs.5000 Crores, with instruments tenors ranging from short datedtreasury bills to long dated securities extending beyond 20 years. Thegovernment securities market not only provides resources to thegovernment for meeting its short term and long term needs but alsoacts as the benchmark for pricing corporate papers of varyingmaturities. The government securities market includes the datedSecurities issued by the government, both Central and State andTreasury bills of all maturities. The corporate bond market is also fastdeveloping with greater number of corporates accessing the marketsthrough MIBOR linked bonds, commercial paper issuances andmedium to long dated fixed and floating rate bonds. The yield curvetends to be positive sloping i.e. yield of shorter dated Securities beinglower than that of longer dated ones.Instrument Current Yield as on Apr 10, 2012(% per annum)91 Days Treasury Bills 8.65% - 8.70%364 days Treasury Bills 8.35% - 8.40%P1+ Commercial Paper - 90 Days 10.40% - 10.50%Certificate of Deposits - 90 days 9.85% - 9.95%1 year corporate bond 9.75% - 9.85%5 year corporate bond 9.45% - 9.55%These yields are only indicative and interest rates are susceptible tofluctuations and are sensitive to various macro economic and politicalfactors. Please note that the above examples are based onassumptions and are used only for illustrative purposes.Portfolio TurnoverThe Scheme being an open ended income Scheme, it is expected thatthere would be a number of Subscriptions and Redemptions on a dailybasis. Therefore, it is difficult to estimate with any reasonable measureof accuracy, the likely turnover in the portfolio. The Scheme has nospecific target relating to portfolio turnover. Higher portfolio turnoverrate may result into higher brokerage and transaction cost.FFUNDAMENTAL ATTRIBUTESFollowing are the Fundamental Attributes of the Scheme, in terms ofRegulation 18 (15A) of the SEBI Regulations:(i) Type of Scheme• Open-ended Income Scheme(ii) Investment Objective• The main investment objective as defined in Section II, Paragraph Bof this SID.• The Scheme offers both Growth and Dividend option.• The investment pattern is as set out in Section II, Paragraph C ofthis SID with the option to alter the asset allocation for a short termperiod on defensive considerations.(iii) Terms of Issue• Liquidity: The Scheme being an open ended income scheme theUnits are not proposed to be listed on any stock exchange. Unitsmay be Purchased or Redeemed at NAV related prices on everyBusiness Day on an ongoing basis. The procedure for Repurchase /Redemption of units on an ongoing basis is as set out in theRepurchase / Redemption of Units in Section III, Paragraph B ofthis SID. The Mutual Fund will endeavor to dispatch theRedemption proceeds within 3 Business Days from the acceptanceof the Redemption request.• The aggregate fees and expenses charged to the Scheme are setout in Section IV, Paragraph B which are as permitted by the SEBIRegulations.• The present Scheme is not a guaranteed or assured return schemeand hence no safety net or guarantee is provided.• In accordance with Regulation 18(15A) of the SEBI Regulations, theTrustee shall ensure that no change in the fundamental attributesof the Scheme / option(s) thereunder as set out above shall beeffected and that no change to the trust or fees and expensespayable or any other change is made which would modify theScheme / option(s) thereunder and affect the interests of UnitHolders is carried out unless:• A written communication about the proposed change is sent toeach Unit Holder and an advertisement is given in one English dailynewspaper having nationwide circulation as well as in a newspaperpublished in the language of the region where the Head Office ofthe Mutual Fund is situated; and• The Unit Holders are given an option for a period of 30 days to exitat the prevailing NAV without any Exit Load.G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?The performance of the schemes of the Mutual Fund is reviewed by theInvestment Committee of the AMC as well as the Board of the AMC andTrustee periodically. The Investment Committee is operational at theAMC level and has majority representation from the seniormanagement of the AMC. Monthly reports on the performance of theschemes with appropriate benchmark indices are also sent to thedirectors of the AMC and the Trustee together with the relativeperformance of the schemes of other mutual funds schemes in thesame category.The benchmark for the Scheme is CRISIL Short Term Bond Fund Index.The performance of the Scheme would be benchmarked with CRISILShort Term Bond Fund Index since it is in line with the investmentobjective and this reflects the primary universe of stocks from wherethe portfolio would be constructed by the Fund Managers. The Trusteemay change the benchmark in future if a benchmark better suited to18

the investment objective of the Scheme is available. Further, in termsof SEBI Circular No.MFD/CIR/16/400/02 dated March 26, 2002, theperformance of the Scheme compared to its benchmark index will bereviewed at every meeting of the Board of the AMC and Trustee andcorrective action as proposed will be taken in case of unsatisfactoryperformance.H. WHO MANAGES THE SCHEME?Namdev Chougule – Head: Fixed IncomeAge: 35 yearsTotal experience: 11 yearsMr. Chougule is the Head of Fixed Income and a part of GlobalEmerging Market Debt team. Other than managing Fixed IncomeFunds, he also manages Off-Shore funds for JP Morgan AMC. He hasworked in the financial services sector for approximately 10 years as adealer, analyst and fund manager for several leading mutual funds andbanks. Prior to joining JPMorgan Asset Management India PrivateLimited, Mr. Chougule worked for a year as a Fixed Income FundManager with Lotus India Asset Management Company Private Limitedand around 6 months as a Fixed Income Analyst with JM Financial AssetManagement Company Limited.Mr. Chougule holds a B.E. (Elect.) and MMS (Finance) and he has passedthe Financial Risk Managers (FRM) examination conducted by theGlobal Association of Risk Professionals (GARP). He also holds a CFAqualification.Ravi Ratanpal - Associate Fund Manager, DebtAge: 32 yearsTotal experience: 7 yearsMr. Ratanpal is the Fund Manager for Debt Funds and has been withJPMorgan group since 2004. Mr. Ratanpal has experience in debtcapital markets research. Prior to his moving into the AssetManagement team, he was part of Investment Banking Research. Mr.Ratanpal is a Commerce Graduate from the Mumbai University andMBA (Finance). Mr. Ratanpal has passed the Financial Risk Managers(FRM) examination conducted by the Global Association of RiskProfessionals (GARP).I. WHAT ARE THE INVESTMENT RESTRICTIONS?i) Disclosure and investment restrictionsAll investments by the Scheme will be made in accordance with theinvestment objective of the Scheme, investment strategy andinvestment restrictions described in this SID. However the followinginvestment restrictions in accordance with the SEBI Regulations shallapply to the Scheme at the time of making investments:1. The Scheme shall not invest more than 15% of its NAV in debtinstruments (irrespective of residual maturity) issued by a singleissuer which are rated not below investment grade by a creditrating agency authorised to carry out such activity under theRegulations. Such investment limit may be extended to 20% of theNAV of the Scheme with the prior approval of the Board of theTrustee and the Board of the AMC.Provided that such limit shall not be applicable for investments ingovernment Securities and money market instruments.Provided further that investment within such limit can be made inmortgaged backed securitised debt which is rated not belowinvestment grade by a credit rating agency registered with SEBI.Debentures, irrespective of any residual maturity period (above orbelow one year), shall attract the investment restrictions asapplicable for debt instruments as specified under Clause 1 and 1Aof the Seventh Schedule to the Regulations.2. The Scheme shall not invest more than 10% of its NAV in unrateddebt instruments (irrespective of residual maturity) issued by asingle issuer and the total investment in such instruments shall notexceed 25% of the NAV of the Scheme. All such investments shallbe made with the prior approval of the Board of the Trustee and theBoard of the AMC.3. The Scheme shall not invest more than thirty per cent of its netassets in money market instruments of an issuer. Such limit shallnot be applicable for investments in Government securities,treasury bills and collateralised borrowing and lendingobligations.4. Transfers of investments from one scheme to another scheme inthe Mutual Fund shall be made only if:(a) such transfers are done at the prevailing market price forquoted instruments on spot basis.(Explanation: “spot basis” shall have the same meaning asspecified by stock exchange for spot transactions.)(b) the Securities so transferred shall be in conformity with theinvestment objective of the scheme to which such transfer hasbeen made.5. The Scheme may invest in other schemes managed by the sameAMC or by the asset management company of any other mutualfund without charging any fees, provided that aggregate interschemeinvestment made in all schemes under the samemanagement or in schemes under the management of any suchother asset management company shall not exceed 5% of the netasset value of the Fund.6. The Scheme shall buy and sell Securities on the basis of deliveriesand shall in all cases of purchases, take delivery of relativeSecurities and in all cases of sale, deliver the Securities and shall inno case put itself in a position whereby it has to make short sale orcarry forward transaction or engage in badla finance, unless theshort selling transactions has been entered into on a recognizedstock exchange, subject to the framework relating to short sellingand securities lending and borrowing specified under applicableLaws.Provided that the Fund may enter into derivatives transactions on arecognised stock exchange subject to such guidelines as may bespecified by SEBI.Provided further that sale of government security alreadycontracted for purchase shall be permitted in accordance with theguidelines issued by the Reserve Bank of India in this regard.19

7. The Mutual Fund shall get the Securities purchased or transferredin the name of the Mutual Fund on account of the Schemewherever investments are intended to be of a long term nature.8. Pending deployment of funds of the Scheme in Securities in termsof investment objectives of the Scheme, the Scheme can investsuch funds in short-term deposits of scheduled commercial banks,in accordance with the Regulations. The investment in thesedeposits shall be in accordance with SEBI Circular nos.SEBI/IMD/CIR No. 1/91171/07, SEBI/IMD/CIR No. 8/107311/07,SEBI/IMD/CIR No. 7/129592/08 dated April 16, 2007, October 26,2007 and June 23, 2008, respectively and any other applicableguidelines. Further the AMC would not charge any investmentmanagement fees for parking funds of the Scheme in short termdeposits of commercial banks.9. The Scheme shall not make any investment in:(a) any unlisted security of an associate or group company of theSponsor; or(b) any security issued by way of private placement by anassociate or group company of the Sponsor; or(c) the listed Securities of group companies of the Sponsor whichare in excess of 25% of the net assets.10. The Scheme shall not make any investment in any fund of fundsscheme.ii) Guidelines governing investments in Debt SecuritiesThe AMC will follow a policy where, before any investment is made inany debt instrument, a research report will be prepared by the FundManager / Research Analyst which will analyze the debt instruments.The research report shall be reviewed at least on a half yearly basis.The recommendations of the research report shall not be binding onthe Fund Manager.Any purchase which is made against the recommendations of theresearch recommendation shall be backed by the reasons for the sameby the concerned Fund Manager. For investment into companies forwhich there is a pre existing research report that is not dated morethan six months from the day of the proposed investment, theinvestment can be made by the Fund Manager directly. However, if theresearch report is dated more than six months without any subsequentupdate then a fresh report will required.The investment philosophy of the AMC shall be directed towardsproviding stable returns with a low risk strategy and capitalappreciation / accretion through investment in debt instruments andrelated securities besides preservation of capital. The Scheme shallinvest only in debt securities with credit rating of AA- and above.iii) Guidelines governing investments in GoI SecuritiesAs per Regulations and investment restriction guidelines issued bySEBI, the AMC will follow a policy wherein each decision of purchase /sale of government securities and money market instruments shall berecorded. A weekly report relating to the portfolio of the Scheme willbe reviewed by the Investment Committee of the AMC.Investment and security selection of all kind of debt instrumentsincluding GoI Securities, State Government securities, andGovernment guaranteed debt is delegated to the Fund Manager withthe responsibility on the Fund Manager / Chief Investment Officer to20ensure conformity with the specified minimum credit rating standardsfor position credit risk and portfolio credit risk. All investments in GoIsecurities shall be done in accordance with SEBI / RBI guidelines.iv) Investment restrictions pertaining to DerivativesDerivatives products are leveraged instruments and can providedisproportionate gains as well as disproportionate losses to theinvestor. Execution of such strategies depends upon the ability of thefund manager to identify such opportunities. Identification andexecution of the strategies to be pursued by the fund manager involveuncertainty and the decision of the fund manager may not always beprofitable. No assurance can be given that the fund manager will beable to identify or execute such strategies.The risks associated with the use of derivatives are different from, orpossibly greater than, the risks associated with investing directly insecurities and other traditional investments.In terms of Circular No. MFD.BC.191/07.01.279/1999-2000 andMPD.BC.187/07.01.279/1999-2000 dated November 1, 1999 and July 7,1999 respectively issued by the RBI permitting participation by mutualfunds in interest rate swaps and forward rate agreements, the Fundwill use derivative instruments for the purpose of hedging andportfolio balancing. Further, the guidelines issued by the RBI from timeto time for forward rate agreements and interest rate swaps and otherderivative products will be adhered to by the Fund.Interest Rate Swaps (IRS)An IRS is an agreement between two parties to exchange statedinterest obligations for an agreed period in respect of a notionalprincipal amount. The most common form is a fixed to floating rateswap where one party receives a fixed (pre-determined) rate ofinterest while the other receives a floating (variable) rate of interest.Interest Rate Futures (IRF)Interest Rate Futures means a standardised interest rate derivativecontract traded on a recognized stock exchange to buy or sell anotional security or any other interest bearing instrument or an indexof such instruments or interest rates at a specified future date, at aprice determined at the time of the contract.Example of an IRF Contract Specification:A 10 year IRF Contract will be having the following specifications:– Underlying – 10 year coupon bearing GoI Security– Notional Coupon – 7.00% semi annual (day count 30 / 360)– Contract Size – Rs. 2,00,000– Available Contracts – Quarterly contracts expiring in themonths of March, June, September and Decemberst– Deliverable Month – From 1 of the contract expiry month tolast day of contract expiry month i.e. 1 month– Tenor – The maximum maturity of the contract is 12 months– Last Delivery Day – Last Business Day of the month– Trading Hours – 9.00 am to 5.00 pm– Limits – Limits have been placed on gross open positions ofclients across all contracts at 6% of the total open interest ofRs. 300 crores, whichever is higher.

– Quotations – Similar to the price of a GoI security, having a daycount convention of 30/360.IRF for HedgingInterest rate futures can also be used for hedging purpose asfollows:– Hedging for increase in interest rates: In this case a decrease inthe value of the portfolio can be hedged by taking a shortposition. If interest rates do increase, the portfolio value willdecrease but the value of the futures will increase.– Changing duration of bond portfolio: Broadly, futures can bepurchased to increase the duration of the portfolio or sold todecrease the duration of the portfolio.Example -A debt mutual fund can effectively use IRFs to hedge from increasein interest rates. The fund has to short IRFs to hedge its position.Amount Invested in 54,00,000.009.125% 10 Yr GSecViewCurrent Yield from Bonds 9.125%Price 100.00Yields likely to go upin next one monthNo. of bonds held 54,000.00March Futures Price 92.0500Settlement Date 1st October, 2009Futures expiry 31st March, 2010Yield on futures 8.18%No. of contracts purchased 27.00After 1 month Yield on Bonds 9.852%Price 95.4489Loss on Bond -2.45,759.00Futures yield after 1 month 8.87%Futures Price 87.8225Profit on futures contract 2,28,245.00Net Gain / (Loss) – 17,474.00Note: The hedge needs to be monitored regularly to make it moreeffective and the hedge ratio needs to be applied to determine thenumber of futures contracts required to hedge the cash bond position.A mutual fund can also hedge its corporate bond portfolio by usingIRFs. However, this will be a cross hedge and may not be as effective ashedging a government bond portfolio.Forward Rate Agreement (FRA)A FRA is basically a forward starting IRS. It is an agreement betweentwo parties to pay or receive the difference between an agreed fixedrate (the FRA rate) and the interest rate (reference rate) prevailing on astipulated future date, based on a notional principal amount for anagreed period. The only cash flow is the difference between the FRArate and the reference rate. As is the case with IRS, the notionalamounts are not exchanged in FRAs.Example of a derivatives transaction:Basic Structure of a SwapBank A has a six-month Rs. 10 crores liability, currently being deployedin call. Bank B has a Rs. 10 crores, six-month asset, being fundedthrough call. Both banks are running an interest rate risk.To hedge this interest rate risk, they can enter into a six-month MIBOR(Mumbai Inter Bank Offered Rate) swap. Through this swap, A willreceive a fixed pre-agreed rate (say 7%) and pay “call” on the NSEMIBOR (“benchmark rate”). Bank A paying at “call” on the benchmarkrate will hedge the interest rate risk of lending in call. Bank B will pay7% and receive interest at the benchmark rate. Bank A receiving of“call” on the benchmark rate will hedge its interest rate risk arisingfrom its call borrowing.The mechanism is as follows:– Assume the swap is for Rs. 10 crores March 1, 2005 to September 1,2005. A is a fixed rate receiver at 7% and B is a floating ratereceiver at the overnight compounded rate.– On March 1, 2005, A and B will exchange only an agreement ofhaving entered this swap. This documentation would be based onan International Swaps and Derivatives Association (ISDA)template.– On a daily basis, the benchmark rate fixed by NSE will be tracked bythem. On September 1, 2005 they will calculate the following:– A is entitled to receive interest on Rs. 10 crores at 7% for 184 daysi.e. Rs. 35.28 lakhs, (this amount is known at the time the swap wasconcluded) and will pay the compounded benchmark rate.– B is entitled to receive daily compounded call rate for 184 days andpay 7% fixed.– On September 1, 2005, if the total interest on the daily overnightcompounded benchmark rate is higher than Rs. 35.28 lakhs, A willpay B the difference. If the daily compounded benchmark rate islower, then B will pay A the difference.– Effectively, Bank A earns interest at the rate of 7% p.a. for sixmonths without lending money for six months fixed, while Bank Bpays interest @ 7% p.a. for six months on Rs. 10 crores, withoutborrowing for six months fixed.As per the above mentioned RBI circulars, mutual funds are permittedto do interest rate swaps / forward rate agreements for hedgingpurposes only. Accordingly, the AMC would undertake the same forsimilar purposes only. IRS and FRAs also have inherent credit andsettlement risks. However, these risks are reduced as they are limitedto the interest streams and not the notional principal amounts.Investments in derivatives will be in accordance with the SEBIRegulations / guidelines and derivatives shall be used for hedging and/ or portfolio balancing purposes, as permitted under the Regulations.The circumstances under which such transactions would be enteredinto would be when, using the IRS route, it is possible to generatebetter returns / meet the objective of the Scheme at a lower cost. Forexample, if buying a two-year MIBOR based instrument and receiving21

the two-year swap rate yields better return than buying the two-yearAAA corporate instrument, the Scheme would endeavour to do that.Alternatively, the Scheme would also look to hedge existing fixed ratepositions if the view on interest rates is that they are likely to rise in thefuture.These investment limitations/parameters as expressed (linked to thenet asset/net asset value/capital) shall, in the ordinary course, apply asat the date of the most recent transaction or commitment to invest andchanges do not have to be effected merely because, owing toappreciation or depreciation in value or by reason of the receipt of anyrights, bonuses or benefits in the nature of capital or of any scheme ofarrangement or for amalgamation, reconstruction or exchange, or atany repayment or redemption or other reason outside the control ofthe Trustee/AMC, any such limits would thereby be breached.Apart from the investment restrictions prescribed under theRegulations, internal risk parameters for limiting exposure to aparticular scrip or sector may be prescribed from time to time torespond to the dynamic market conditions and market opportunities.The Trustee / AMC may alter the above stated limitations from time totime (including the provisions of the Trust Deed) and also to the extentthe Regulations change so as to permit the Scheme to make itsinvestments in the full spectrum of permitted investments in order toachieve its investment objective.In addition to the Investment Restrictions prescribed by SEBIRegulations, the AMC / the Trustee may also prescribe certain internalrisk mitigating parameters / procedures from time to time to limitexposure of the Scheme in certain Securities, in order to overcomevolatile market conditions.J. HOW HAS THE SCHEME PERFORMED?Scheme returns as on 30 March 2012RETAIL PLAN:Scheme Returns (%) CRISIL Short Term Bond Fund Index#(%) CRISIL 1 year T-Bill Index## (%)^Returns for the last 1 year 9.54 8.28 6.59^Returns since inception 8.05 6.68 5.2210.00%80.00%60.00%40.00%2.00%0.00%Absolute returns for each financial year for the last 2 yearsScheme Returns6.649%5.1%K. INVESTMENTS BY THE AMCCRISIL Short-term Bond Fund Index9.54%8.28%2010-11 2011-12Financial YearsSubject to the SEBI Regulations, the AMC may invest up to its net worth,either directly or indirectly, in the Scheme during the NFO and / orOngoing Offer Period. However, the AMC shall not charge anyinvestment management fee on such investment in the Scheme.Note: CAGR are given for more than one year. Absolute returns of thegrowth option are computed for a period of less than one year. “Sinceinception” returns are calculated on Rs. 10/- invested at inception.Past performance may or may not be sustained in future.Allotment Date : 25th March 2010 #Scheme benchmark returns##Additional benchmark returns ^CAGR returnsL. UNDERTAKING BY THE TRUSTEESThe Trustees have ensured that the JPMorgan India Short Term IncomeFund approved by them is a new product offered by the JPMorganMutual Fund and is not a minor modification of any existingscheme/fund/product.Date of Approval by the Trustee: December 22, 2009III. UNITS AND OFFERThis section provides details investors need to know for investing in the Scheme.A. NEW FUND OFFER (NFO)New Fund Offer Period, New Fund OfferPrice, Minimum Amount for Application inthe NFO Period, Minimum Target Amount,Maximum Amount to be raised, Allotment,Refund and Special products / facilitiesavailable during the NFO.Options OfferedThese sections do not apply to the Scheme covered in this SID, as the ongoing offer of theScheme has commenced after the NFO, and the Units are available for continuous subscriptionand redemption.The Scheme offers two options - Growth option and Dividend option.Under the Growth option no dividend will be declared.Under the Dividend option, a dividend may be declared by the Trustee, at its discretion, from22

time to time (subject to the availability of distributable surplus as calculated in accordance withthe Regulations).The dividend option offers weekly, fortnightly and monthly dividend reinvestment options andmonthly dividend payout. In case of weekly dividend reinvestment option, record date for thedeclaration of dividend shall be every Tuesday, in case of fortnightly dividend reinvestmentoption the record date shall be 14th and 28th of each month and in case of monthly dividendreinvestment option, the record date shall be 25th of each month. In case these record dates fallon a non-Business Day, the record date shall be taken to be the next Business Day. There is noassurance or guarantee to Unit Holders as to the rate of dividend distribution nor that thedividends will be regularly declared, though it is the intention of the Mutual Fund to makeregular dividend distribution under the Dividend Option. Dividend distribution is subject toavailability of distributable surplus.If the investor does not clearly specify at the time of investing, the choice of option underdividend, it will be treated as a weekly dividend reinvestment option.If the investor does not clearly specify the choice of option at the time of investing, it will betreated as a growth option.The Trustee may decide to distribute by way of dividend, the surplus by way of realised profit,dividends and interest, net of losses, expenses and taxes, if any, to Unit Holders in the dividendoption of the Scheme if such surplus is available and adequate for distribution in the opinion ofthe Trustee. The Trustee's decision with regard to availability and adequacy, rate, timing andfrequency of distribution shall be final. The dividend will be due to only those Unit Holders whosenames appear in the register of Unit Holders in the dividend option of the Scheme on the recorddate which will be announced in advance in accordance with the SEBI Regulations.Dividend PolicyDematerializationThe Trustee may decide to distribute by way of dividend, the surplus by way of realised profit,dividends and interest, net of losses, expenses and taxes, if any, to Unit Holders in the dividendoption of the Scheme if such surplus is available and adequate for distribution in the opinion ofthe Trustee. The Trustee's decision with regard to availability and adequacy, rate, timing andfrequency of distribution shall be final. The dividend will be due to only those Unit Holders whosenames appear in the register of Unit Holders in the Dividend option of the Scheme on the recorddate which will be announced in advance in accordance with the SEBI Regulations. The UnitHolders have the option of receiving the dividend or reinvesting the same. The dividend will bereinvested, only in case of Dividend reinvestment option, at the Applicable NAV of theimmediately following Business Day.The AMC shall dispatch to the Unit Holders, the dividend warrants within 30 days of the date ofdeclaration of dividend. The dividend distribution procedure shall be in accordance with theSEBI Regulations.Investors have an option to hold the Units by way of an account statement or in electronic(dematerialized) form. The option to hold the Units in dematerialized form can be exercised atthe time of subscription to the Units or at a later date by converting the Units in dematerializedform. Investors opting to hold the Units in electronic form must provide their dematerializedaccount details in the specified section of the Application Form. Investors intending to hold theUnits in electronic form are required to have a beneficiary account with a Depository Participant(registered with NSDL / CDSL as may be indicated by the Mutual Fund at the time of launch of theScheme) and will be required to indicate in the application the Depository Participant's name,Depository Participant ID Number and the beneficiary account number of the applicant heldwith the Depository Participant. Applicants must ensure that the sequence of the names asmentioned in the Application Form matches with that of the beneficiary account held with theDepository Participant. Names, PAN details, KYC details etc. mentioned in the Application Formwill be verified against the Depository's records. If the details mentioned in the Application Formare found to be incomplete / incorrect or not matching with the records of the DepositoryParticipant, the application shall be treated as application for physical (non-dematerialized)mode and accordingly Units will be allotted in physical (non-dematerialized) mode, subject to itbeing complete in all other aspects.23

Where investors do not provide their dematerialized account details, an account statement shallbe sent to them. Such investors will not be able to trade in the stock exchange till their holdingsare converted into dematerialized form. For conversion of physical holdings into dematerializedform, the Unit Holders will have to send the dematerialized requests to their DepositoryParticipants.Units held by way of account statement cannot be transferred. Units held in dematerialized formare transferable in accordance with the provisions of the Depositories Act, 1996 and the SEBI(Depositories and Participants) Regulations, 1996 as may be amended from time to time. Incase, the Unit holder desires to hold the Units in a Dematerialized / Rematerialized form at alater date, the request for conversion of the Units held in physical (non-dematerialized) modeinto electronic (dematerialized) form or vice-versa should be submitted along with adematerialized / rematerialized Request Form to their Depository Participant. Investors shouldensure that the combination of names in the account statement is the same as that in thedematerialized account.Dematerialisation of UnitsUnit Holders may have / open a beneficiary account with a Depository Participant of aDepository and choose to hold the Units in dematerialised mode. The Unit Holders have theoption to dematerialise the Units held as per the account statement sent by the Registrar bymaking an application to the AMC / Registrar and Transfer Agent / Depository Participant forthis purpose.Rematerialisation of UnitsRematerialisation of Units can be carried out in accordance with the provisions of SEBI(Depositories and Participants) Regulations, 1996 as may be amended from time to time.The process for rematerialisation of Units will be as follows:Unit Holders will be required to submit a request to their respective Depository Participant forrematerialisation of Units in their beneficiary accounts.The Depository Participant will generate a rematerialisation request number and the requestwill be despatched to the AMC / Registrar and Transfer Agent.On acceptance of request from the Depository Participant, the AMC/ Registrar and Agent willdespatch the account statement to the investor and will also send confirmation to theDepository Participant.During the dematerialization and rematerialisation process no financial and non financialtransactions are allowed.The above shall be subject to SEBI Regulations and the guidelines issued by NSE, BSE, CDSL andNSDL in this regard, as applicable and as amended from time to time.Who can investThis is an indicative list and you are requestedto consult your financial, legal and tax advisorto ascertain whether the Scheme is suitableto your risk profile.A. Who can investProspective investors are advised to satisfy themselves that they are not prohibited by any lawfrom investing in the Scheme and are authorised to purchase units of mutual funds as per theirrespective constitutions, charter documents, corporate / other authorisations and relevantstatutory provisions. Investors are also requested to consult their financial advisor to ascertainwhether the Scheme is suitable to their risk profile. The following is an indicative but notexhaustive list of persons who are generally eligible and may apply for subscription to the Unitsof the Scheme:• Indian resident adult individuals, either singly or jointly (not exceeding three);• Minor through parent (i.e. mother / father or legal guardian); (please see the notebelow);• A HUF through its Karta;• An association of persons or a body of individuals24

• Companies, bodies corporate, public sector undertakings, association of persons orbodies of individuals and societies registered under the Societies Registration Act,1860;• Religious and charitable trusts, wakfs or endowments of private trusts (subject toreceipt of necessary approvals as required) and private trusts authorised to invest inmutual fund schemes under their trust deeds;• Partnership firms constituted under the Partnership Act, 1932;• Banks (including cooperative banks and regional rural banks) and financial institutions;• NRIs / PIOs on a full repatriation basis or on a non-repatriation basis (NRIs or PIOs of theUnited States of America and Canada cannot apply);• FIIs registered with SEBI on full repatriation basis;• Army, air force, navy and other paramilitary funds and eligible institutions;• Scientific and industrial research organisations;• Provident / pension / gratuity and such other funds as and when permitted to invest;• International multilateral agencies approved by the government of India / RBI;• The Trustee, AMC or Sponsor or their associates (if eligible and permitted underprevailing Laws).• A mutual fund through its schemes, including fund of funds schemes.• Any other category of investors as the AMC / Trustee may permit.Note on Minor:1. Account to be Opened “On Behalf of Minor”1.1 The minor shall be the first and the sole holder in an account. There shall not be any jointaccounts with minor as the first or joint holder.1.2 The guardian who opens the folio on behalf of the minor should either be a naturalguardian (i.e. father or mother) or a court appointed legal guardian.1.3 The guardian shall mandatorily provide information on the relationship / status of theguardian as father, mother or legal guardian in the Application Form.1.4 In case of natural guardian, a document should be provided evidencing the relationshipif the same is not available as part of the documents submitted as per 1.6 below.1.5 In case of a court appointed legal guardian, relevant supporting documentary evidenceshall be provided.1.6 Photocopy of any one of the following documents reflecting the date of birth of theminor shall be mandatory while opening the account on behalf of minor:(a)(b)(c)(d)(e)Birth certificate of the minor, orSchool leaving certificate / Mark sheet issued by Higher Secondary Board ofrespective states, ICSE, CBSE etc., orPassport of the minor, orPAN, orAny other suitable proof evidencing the date of birth of the minor, as deemedappropriate by the AMC.2. Change in Status on Minor Attaining Majority2.1 Prior to the minor attaining majority, an advance intimation shall be sent to theregistered correspondence address advising the guardian and the minor to submit anApplication Form along with prescribed documents (as per 2.5 below) to change thestatus of the account to “major”.25

2.2 There shall be a freeze on the operation of the account by the guardian on the day theminor attains the age of majority and no transactions shall be permitted untilsatisfactory documents for effecting the change in status as stated in 2.5 below arereceived.2.3 In case of existing standing instructions including STP, SIP and SWP registered prior tothe minor attaining majority, an advance notice shall be sent to the registeredcorrespondence address advising the guardian and the minor that the existing standinginstructions will continue to be processed beyond the date of the minor attainingmajority until the time an instruction from the major to terminate the standinginstruction is received by the mutual fund along with the prescribed documents as per2.5 below. It is also clarified that the standing instruction shall be terminated within 30days from the date of receiving the instructions from the major to terminate thestanding instructions.2.4 For new standing instructions such as SIP, SWP, STP in a minor's folio shall only beregistered until the date on which the minor attains majority, even if the instructionsmay be for a period beyond that date.2.5 List of documents required to effect change in status from minor to major:(a)(b)(c)(d)Service Request form, duly completed and containing details including name ofmajor, folio numbers, nomination etc. (available on the AMC's website);New Bank mandate where account reflects change from minor to major(available on the AMC's website);Signature attestation of the major by a manager of a Scheduled Bank orCertificate / Letter from any bank;KYC acknowledgement of the major.A minor Unit Holder on becoming a major may inform the Registrar and Transfer Agent andprovide his specimen signature duly authenticated by his banker as well as his details of bankaccount and PAN to enable the Registrar and Transfer Agent to update its records and allow him/ her to operate the account in his own right.B. Who cannot investIt should be noted that the following persons / entities cannot invest in the scheme:(a)(b)(c)(d)(e)Any individual who is a foreign national or any other entity that is not an Indianresident under the Foreign Exchange Management Act, 1999, except whereregistered with SEBI as a FII or FII sub-account or except for NRIs or PIOs (whoare not residents of the United States of America and Canada), unless suchforeign national or other entity that is not an Indian resident has procured therelevant regulatory approvals from the Foreign Investment Promotion Boardand/or the RBI, as applicable in the sole discretion and to the sole satisfaction ofthe AMC.Overseas Corporate Bodies (OCBs), i.e. firms and societies which are helddirectly or indirectly but ultimately to the extent of at least 60% by NRIs andtrusts in which at least 60% of the beneficial interest is similarly held irrevocablyby such persons without the prior approval of the RBI.NRIs and PIOs who are resident of the United States of America and Canada.NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determinedby the Financial Action Task Force (FATF), from time to time.Religious and charitable trusts, wakfs or other public trusts that have notreceived necessary approvals and a private trust that is not authorized to investin mutual fund schemes under its trust deed. The Mutual Fund will not beresponsible for or any adverse consequences as a result of an investment by apublic or a private trust if it is ineligible to make such investments.26

(f)(g)Any other person determined by the AMC or the Trustee as not being eligible toinvest in the Scheme.The Scheme has not been registered under the US Securities Act, as amended(the “Act”) or under any similar or analogous provision of law enacted by anyjurisdiction in the United States (the “US”). The units may not be offered or soldwithin the US or sold to any US Person unless the AMC, at its absolute discretion,grants an exception. For this purpose, a US Person is one falling under either thedefinition under the Act as amended or under the US Internal Revenue Code (“IRCode”) as specified below:A “US Person” is defined under the IR Code as follows:1. An individual who is a citizen of the US or a resident alien for US federal income tax purposes.In general, the term “resident alien” is defined for this purpose to include any individual who(i) holds an Alien Registration Card (a “green card”) issued by the US Immigration andNaturalization Service or (ii) meets a “substantial presence” test. The “substantialpresence” test is generally met with respect to any calendar year if (i) the individual waspresent in the US on at least 31 days during such year and (ii) the sum of the number of daysin which such individual was present in the US during such year, 1/3 of the number of suchdays during the first preceding year, and 1/6 of the number of such days during the secondpreceding year, equals or exceeds 183 days;2. A corporation, an entity taxable as a corporation, or a partnership created or organized in orunder the laws of the US or any state or political subdivision thereof or therein, including theDistrict of Columbia (other than a partnership that is not treated as a US person under USTreasury Regulations );3. An estate the income of which is subject to US federal income tax regardless of the sourcethereof; or4. A trust with respect to which a court within the US is able to exercise primary supervisionover its administration and one or more US persons have the authority to control all of itssubstantial decisions, or certain electing trusts that were in existence on August 20, 1996and were treated as domestic trusts on August 19, 1996.The Units are not 'public securities' under the relevant statutes and any religious and charitabletrust that seeks to invest in the Units will require prior approval of the appropriate authorityunder appropriate enactments which apply to them and appropriate consents under their trustdeeds / constitutional documents, if applicable.The Mutual Fund reserves the right to include / exclude new / existing categories of investors toinvest in the Scheme from time to time, subject to the SEBI Regulations and other prevailinglaws, if any.Subject to the SEBI Regulations, any application for Units may be accepted or rejected at the soleand absolute discretion of the Trustee. For example, the Trustee may reject any application forthe Purchase of Units if the application is invalid or incomplete or if, in its opinion, increasing thesize of the Scheme's Unit Capital is not in the general interest of the Unit Holders, or if theTrustee for any other reason does not believe that it would be in the best interest of the Schemeor its Unit Holders to accept such an application.The AMC / Trustee may need to obtain from the investor verification of identity or such otherdetails relating to a subscription for Units as may be required under any applicable Law, whichmay result in a delay in processing the application.Where can Investors submitCompleted Applications.Investors are requested to refer to the list of ISCs / TAPs provided on the last page of the SID andto the latest list which is available on the AMC's website (www.jpmorganmf.com) for the list ofCollecting Bankers, ISCs and Collection Centers. Investors can purchase / redeem units of thescheme through stock exchange's in accordance with the guidelines issued by SEBI / NSE / BSE /NSDL / CDSL.27

How to ApplyPlease refer to the SAI and Application Form for the instructions.Application Forms / Transaction Slips for the Purchase of Units of the Scheme will be available atthe ISCs / distributors and our Website. Application Forms / Transaction Slips filled up and dulysigned by the investor or all joint investors (as the case may be) should be submitted along withthe cheque /draft / other payment instrument and supporting documents to a DesignatedCollection Centre. For details of payment, please refer below under - How to pay.Initial Purchases, Additional Purchases and Redemptions may be communicated throughfacsimile instructions ("Facsimile Instructions") and the AMC / Mutual Fund / Registrar or anyduly appointed agent or representative of the AMC / Mutual Fund / Registrar ("Recipient") mayaccept Facsimile Instructions subject to the investor fulfilling certain terms and conditions asstipulated by the AMC from time to time. Acceptance of Facsimile Instructions will be subject tocompliance with all prevailing laws and regulations. In case of Additional Purchases andRedemptions the Recipient shall not require other written confirmation in respect of suchFacsimile Instructions. Such Facsimile Instructions are solely for the convenience, and at therisk, of the Unit Holder / Investor ("Transmitter") and the Transmitter authorizes the Recipient toact on any Facsimile Instruction which the Recipient in good faith and in its sole discretionbelieves is transmitted from the Transmitter. The Recipient shall be entitled to treat any suchFacsimile Instructions as if the same was given to the Recipient with the Transmitter's originalsignature.The Recipient shall exercise due care in carrying out its internal verification procedures but shallnot be liable for acting in good faith on such Facsimile Instructions which are transmitted fromunauthorized persons, which shall be binding on the Transmitter whether made with or withouthis authority, knowledge or consent.The Recipient shall not in any way be liable or responsible for any loss, damage caused to theTransmitter directly or indirectly, as a result of the Transmitter sending or purporting to sendsuch Facsimile Instructions including where a Facsimile Instruction sent / purported to be sent isnot processed on account of the fact that it was not received by the Recipient. The Transmitteracknowledges that Facsimile Instructions are not a secure means of giving instructions /transaction requests and that the Transmitter is aware of the risks involved including thosearising out of such transmission being inaccurate, illegible, altered, not timely etc. and that theTransmitter's request to the Recipient to act on any Facsimile Instruction is for the Transmitter'sconvenience and the Recipient shall not be obliged or bound to act on the same.The Transmitter agrees that security procedures adopted by the Recipient may includesignature verification, telephone callbacks or a combination of the same. Callbacks may berecorded by tape recording device and the Transmitter consents to such recording and agrees toco-operate with the Recipient to enable confirmation of such Facsimile Instructions requests.The Transmitter further accepts that the Facsimile Instruction shall not be considered until timestamped appropriately as a valid transaction request in the Scheme in line with the SEBIRegulations. In case of Initial Purchases, the transaction shall be processed and Units allotted onthe basis of the time stamped Facsimile Instruction, provided all requisite physical / originaldocuments (subject to the same being in order) are submitted to the AMC / Mutual Fund /Registrar by 5:30 pm on the same day. It shall be the sole obligation of the Transmitter to ensurethat the requisite physical / original documents (subject to the same being in order) aresubmitted to the AMC / Mutual Fund / Registrar within the stipulated time as stated above,failing which the application / transaction will be rejected. The AMC / Mutual Fund reserves theright to reject the application in case the original varies from the Fax Instructions received.In consideration of the Recipient from time to time accepting and at its sole discretion acting onany Facsimile Instruction request received / purporting to be received from the Transmitter, theTransmitter agrees to indemnify and keep indemnified the Recipient from and against allactions, claims, demands, liabilities, obligations, losses, damages, costs (including withoutlimitation, interest and legal fees) and expenses of whatever nature (whether actual orcontingent) directly or indirectly suffered or incurred, sustained by or threatened against theRecipient arising from or in connection with the Recipient in good faith accepting and acting onFax Instruction requests. The AMC reserves the right to discontinue the above mentionedfacilities at any point in time.28

Note: Initial Purchases through Facsimile Instruction will not be accepted during the NFO.Applications should be made in adherence to the minimum amount requirements as mentionedin paragraph A - Minimum amount for applying in the Scheme.It is mandatory for every applicant to provide the name of the bank, branch, address, accounttype and number as per SEBI requirements and any Application Form / Transaction Slip withoutthese details will be treated as incomplete. Such incomplete applications are liable to berejected. The Registrar and Transfer Agent / AMC may ask the investor to provide a blankcancelled cheque or its photocopy for the purpose of verifying the bank account number.In order to strengthen Know Your Client (KYC) norms and identify every participant in thesecurities market with their respective PAN, thereby ensuring a sound audit trail for alltransactions, SEBI has mandated that PAN will be the sole identification number for allparticipants transacting in the securities market, irrespective of the amount of transaction.If the investment is being made on behalf of a minor, the KYC of the minor or father or mother orthe guardian who represents the minor, should be provided.Applications received without KYC will be rejected.For all applications the applicant or in the case of application in joint names, each of theapplicants, should mention his / her PAN allotted under the Act. An application should becomplete in all respects before it is submitted.It will be treated as incomplete and will be liable to be rejected if:• the PAN is not mentioned; and• any other information or documents as may be required by the AMC or the Trustee havenot been submitted together with the Application Form / Transaction Slips.SEBI vide its circulars MIRSD / SE / Cir-21 / 2011 dated October 05, 2011, MIRSD / Cir-23 / 2011dated December 02, 2011 and MIRSD / Cir-26 / 2011 dated December 23, 2011 had laid down auniform KYC compliance procedure for all investors with effect from January 1, 2012. SEBI alsoissued KYC Registration Agency (“KRA”) Regulations, 2011 and the guidelines in pursuance of thesaid Regulations for In-Person Verification (“IPV”).1. Requirement for the existing investors in mutual funds:The existing investors in mutual funds who have already complied with the KYC requirement(defined for the purpose of this SID as KYC compliant) and have the KYC compliance letter issuedto them by CDSL Ventures Limited are exempt from following the new KYC procedure effectiveJanuary 01, 2012, but only for the purpose of making investments with any SEBI registeredmutual fund.If, however, the KYC compliant investors would like to deal with any SEBI registered intermediaryother than mutual funds, they may have to follow the new KYC compliance procedure.2. Requirement for the new investors in mutual funds:With effect from January 01, 2012, all investors other than KYC compliant investors as definedabove are required to follow the new KYC compliance procedure as mentioned below whilemaking any investment with the Scheme:• Fill up and sign the KYC application form (for individual investors or non-individual investorsas appropriate) available on the website of AMC or AMFI or CDSL Ventures Ltd. Respectivelyi.e. www.jpmorganmf.com or www.amfi india.com or www.cvlindia.com• At the time of transacting with the Mutual Fund, submit, in person, the completed KYCapplication form along with all the necessary documents as mentioned in the KYCapplication form with any of the offices of the distributors (qualified as per the followingnote), Registrar and Transfer Agent of the Mutual Fund and the Mutual Fund; and• Obtain a temporary acknowledgement for submission of all the documents and completionof IPV;Note: As per the SEBI circular MIRSD / Cir-26 / 2011 dated December 23, 2011, it is mandatory for29

SEBI registered intermediaries to carry out IPV of any investor dealing with a SEBI registeredintermediary.For investments in a mutual fund, the asset management companies and distributors whichcomply with the certification process of National Institute of Securities Market or Association ofMutual Funds in India and have undergone the process of “Know Your Distributors” areauthorized to carry out the IPV. Unless the IPV process is completed, the investor will not beconsidered as KYC compliant under the new KYC compliance procedure and hence will not bepermitted to make any investment in the Scheme.For investors proposing to invest within the Mutual Fund directly (i.e. without being investedthrough any distributor), IPV done by a scheduled commercial bank may be relied upon by theFund. Once all the documents are verified by a KRA, they will send the investor a letter within 10working days from the date of receipt of necessary documents by them from the Fund or itsRegistrar and Transfer Agent informing the investor either about compliance by the investor ofthe new KYC compliance procedure (“final acknowledgement”) or any deficiency in submissionof details or documents.On the basis of the temporary acknowledgement or the final acknowledgement the investorwould be eligible to deal with any of the SEBI registered intermediaries as mentioned in theabove mentioned SEBI Circulars.In order to protect investors from fraudulent encashment of cheques, the SEBI Regulationsrequire that cheques for redemption of Units specify the name of the Unit Holder and the bankname and account number where payments are to be credited. Hence, all applicants forpurchase of Units / redemption of Units must provide a bank name, bank account number,branch address, and account type in the Application Form.KYC for Micro SIPSIPs upto Rs. 50,000/- per year per investor i.e. aggregate of instalments in a rolling 12 monthperiod or in a financial year (to be referred as 'Micro SIP') shall be exempt from the requirementof PAN as a proof of identification. The exemption shall be applicable to investments byindividuals, NRIs, Minor and Sole Proprietary Firm. However, PIOs, HUFs, Partnership Firms,Companies, Societies, Trusts and any other category will not be eligible for such exemption. Anyone of the following photo identification documents can be submitted along with these SIPapplications as proof of identification in lieu of PAN:1. Voter Identity Card2. Driving License3. Government / Defense identification card4. Passport5. Photo Ration Card6. Photo Debit Card (Credit card not included because it may not be backed up by a bankaccount)7. Employee ID cards issued by companies registered with Registrar of Companies8. Photo Identification issued by Bank Managers of Scheduled Commercial Banks /Gazetted Officer / Elected Representatives to the Legislative Assembly / Parliament9. ID card issued to employees of Scheduled Commercial / State / District Co-operativeBanks10. Senior Citizen / Freedom Fighter ID card issued by Government11. Cards issued by Universities / deemed Universities or institutes under statutes likeInstitute of Chartered Accountants of India, Institute of Cost and works Accountant,Institute of Company Secretaries of India12. Permanent Retirement Account No. (PRAN) card issued to New Pension System (NPS)subscribers by CRA (NSDL)30

13. Any other photo ID card issued by Central Government / State Governments /Municipalauthorities / Government organizations like ESIC / EPFOThe photo identification document has to be current and valid and also either self attested orattested by an ARN holder.The above-mentioned exemption will not be applicable to normal purchase transactions uptoRs. 50,000/-which will continue to be subject to PAN requirement.Investors shall also be required to provide a copy of the Proof of address which is self attestedand attested by ARN holder.In order to protect investors from fraudulent encashment of cheques, the Regulations requirethat cheques for Redemption of Units specify the name of the Unit Holder and the bank nameand account number where payments are to be credited. Hence, all applicants for Purchase ofUnits / Redemption of Units must provide a bank name, bank account number, branch address,and account type in the Application Form.How to PayAll cheques / drafts must be drawn favouring “JPMorgan India Short Term Income Fund” or"JPMorgan India Short Term Income Fund A/c First Investor Name” or “JPMorgan India ShortTerm Income Fund A/c Permanent Account Number". They should be crossed "Account Payeeonly". A separate cheque, instruction or bank draft must accompany each application.1. Third Party PaymentsIn accordance with AMFI best practice circular no. 135/BP/16/10-11 dated August 16, 2010, witheffect from November 15, 2010, no third party payments shall be accepted in any of the schemesof JPMorgan Mutual Fund. “Third Party Payment” means payment made through an instrumentissued from a bank account other than that of the first named applicant / investor mentioned inthe application form. In case of payment instruments issued from a joint bank account, the firstnamed applicant / investor must be one of the joint holders of the bank account from which thepayment instrument is issued.However, under following exceptional circumstances the third party cheques will be accepted.a) Payment by Parents/Grand-Parents/related persons* on behalf of a minor inconsideration of natural love and affection or as gift for a value not exceedingRs.50,000/- (each regular purchase or per SIP installment). However this restrictionwill not be applicable for payment made by a guardian whose name is registered in therecords of Mutual Fund in that folio.b) Payment by employer on behalf of employee through Payroll deductions (Letter fromthe Company that they are paying on behalf of the employee and the amount isdeducted from the employee’s salary).c) Custodian on behalf of an FII or a client.d) Payment by AMC to a distributor empanelled with it on account ofcommission/incentive etc. in the form of the Mutual Fund Units of the Schememanaged by the AMC through lump sum / one-time subscription, subject tocompliance with SEBI Regulations and Guidelines issued by AMFI, from time to time.AMC shall exercise extra due diligence in terms of ensuring the authenticity of sucharrangements from a fraud prevention and ensure compliance with provisions ofPrevention of Money Laundering Act regarding prevention of money laundering, etc.* 'Related Person' means any person investing on behalf of a minor in consideration of naturallove and affection or as a gift.Investors submitting their applications in the abovementioned exceptional circumstances arerequired to provide the following documents without which the applications for subscription ofunits will be rejected/ not processed/ refunded:a) Mandatory KYC for Investor and the person making the payment i.e third party. Copy ofthe KYC Acknowledgement letter of both; the investor and the person making the31

payment, should be attached along with the application form.b) Declaration from the Investor and the person making the payment. Declaration by theperson making the payment should give details of the bank account from which thepayment is made and the relationship with the investor.Source of FundsA) If the payment is made by cheque: An investor at the time of his/her purchase must providethe details of his pay-in bank account (i.e. account from which a subscription payment ismade) and his pay-out bank account (i.e. account into which redemption / dividendproceeds are to be paid). The verification of third party cheque will be made on the basis ofeither matching the paying – in bank account details with the pay-out bank details or bymatching the bank account number/ name of the first applicant/ signature of the firstapplicant with the name of the account holder/ account number/ signature on the cheque. Ifthe name is not pre-printed on the cheque or the signature on the cheque does not match,then the first named applicant should submit any one of the following documents:a) copy of the bank pass book or account statement from the bank having the name,account number and address of the investor. (Investors should also bring the originaldocuments along with the documents mentioned. The copy of such documents will beverified with the original documents to the satisfaction of the AMC/ R&TA. The originaldocuments will be returned across the counter to the investor after due verification.)b) a letter* from the bank on its letterhead certifying that the investor maintains anaccount with them specifying the account number, type of account, branch, the MICRcode of the branch & the IFSC code (where applicable).In case an investor has multiple accounts, investors are requested to register them with theAMC. Pay-in from such registered single or multiple accounts can be treated as 1st partypayments. The process to be followed for registration of multiple bank accounts is detailedunder point 2 below.B) If the payment is made with pre-funded instruments such as Pay Order, Demand Draft,Banker's cheque, etc. (by debiting a bank account), a Certificate* (in original) from theIssuing banker must accompany the purchase application, stating the Account holder'sname and the Account number which has been debited for issue of such instrument.C) The AMC/ R&TA will not accept any purchase applications from investors if accompanied bya pre-funded instrument issued by a bank against cash for investments of Rs. 50,000 ormore. In case the application is accompanied by the pre-funded instrument issued by bankagainst cash for less than Rs. 50,000 then the investor is required to submit a Certificate* (inoriginal) obtained from the bank giving name, address and PAN (if available) of the personwho has requested for the payment instrument.*The said letter/Certificate should be duly certified by the bank manager with his / her fullsignature, name, bank seal and contact number. The AMC / Mutual Fund / R&TA will check thatthe name mentioned in the Certificate matches with the first named investor.D) If payment is made by RTGS, NEFT, ECS, bank transfer, etc., a copy of the instruction to thebank stating the account number debited must accompany the purchase application.E) Investors transacting through (i) MFSS/ BSE StAR MF Platform under the electronic ordercollection system for schemes which are unlisted and (ii) Stock Exchange(s) for the listedschemes; will have to comply with norms / rules as prescribed by Stock Exchange(s).The above broadly covers the various modes of payment for subscriptions in the scheme. Theabove list is not a complete list and is only indicative in nature and not exhaustive. Any othermethod of payment, as introduced by the Mutual Fund, will also be covered under theseprovisions.2. Registration of Multiple Banks AccountsIn accordance with AMFI circular no. 135/BP/17/10-11 dated October 22, 2010, the investors are32

allowed to register Multiple Banks Accounts for pay-in and pay-out. Investors can register uptofive bank accounts. Multiple Banks Account registration form is available on the website.Investor should use Part A of the Multiple Bank Accounts Registration Form along with any oneof the following documents to register bank mandates. If a copy is submitted, investors shouldbring the original to the office for verification:a. Cancelled cheque leaf, orb. Bank Statement / Pass Book Page with account number, account holders' name andaddress.Investor should use the Part B of the Multiple Bank Accounts Registration Form to register one ofthe registered bank accounts as the default bank account for credit of redemption and dividendproceeds.The investor, may however, specify any other registered bank accounts for credit of redemptionproceeds at the time of requesting for the redemption.The investor should use the Part C of the Multiple Bank Accounts Registration Form to delete aregistered bank account. Investor shall not be allowed to delete a default bank account unlessinvestor registers another registered account as a default account.In case of any change in registered bank account, a cooling off period of 10 calendar days shallbe made applicable for validation and registration of bank accounts.Payment can be made by one of the following methods:• Cheque;• Draft (i.e. demand draft or bank draft);• A payment instrument (such as pay order, banker's cheque, etc.); or• Electronic instructions (if mandated)The cheque should be payable at a bank's branch which is situated at and is a member of theCollecting Banker's clearing house / zone in the city where the application is submitted to aDesignated Collection Centre.An investor may invest through a distributor or bank with whom the AMC has made anarrangement, whereby payment may be made through ECS / NEFT / RTGS or in any manneracceptable to the AMC, and is evidenced by receipt of credit in the bank account of the MutualFund.Further for the benefit of investors, the Real Time Gross Settlement (RTGS) charges upto thelimit of Rs. 200/-, for investments into the schemes of JPMorgan Mutual Fund shall be borne bythe AMC.The following modes of payment are not valid, and applications accompanied by such paymentsare liable to be rejected.• Outstation cheques (i.e. if the cheque is payable at a bank's branch which does notparticipate in the local clearing mechanism of the city where the application issubmitted).• Cash, money orders or postal orders.• Post-dated cheques (except for applications for purchasing Units under SIP of theScheme).If the applicant is resident of a city, the banking clearing circle of which is different from that ofany Investor Service Centre as designated by the AMC from time to time, the AMC shall bear thebank charges for the demand draft(s). The AMC shall not refund any demand draft charges.Applications accompanied by cheques / drafts not fulfilling the above criteria are liable to berejected.33

Note: The Trustee, at its discretion at a later date, may choose to alter or add other modes ofpayment.Payments by NRIs/PIOs, FIIs(a)Repatriable basisIn the case of NRIs / PIOs, payment may be made either by inward remittance through normalbanking channels or out of funds held in a Non-Resident (External) Rupee Account (NREAccount) / Foreign Currency (Non-Resident) Account (FCNR account).Flls may pay their subscriptions either by inward remittance through normal banking channelsor out of funds held in a Non-Resident Rupee Account maintained with the designated branch ofan authorised dealer in accordance with the relevant exchange management regulations.(b)Non-repatriable basisIn the case of NRIs, payment may be made either by inward remittance through normal bankingchannels or out of funds held in an NRE / FCNR / NRO account.ListingThe policy regarding reissue ofrepurchased Units, including themaximum extent, the manner of reissueand the entity (the Scheme or the AMC)involved in the same.Restrictions, if any, on the right to freelyretain or dispose of Units being offeredThe Scheme being open ended, the Units are not proposed to be listed on any stock exchangeand no transfer facility is provided. However, the Mutual Fund may at its sole discretion list theUnits on one or more stock exchanges at a later date.Not ApplicableIn conformity with the guidelines and notifications issued by SEBI / government of India / anyother Regulatory Agencies from time to time, as applicable, Units may be offered as security byway of a lien / charge in favour of scheduled banks, financial institutions, non-banking financecompanies, or any other body. The Registrar and Transfer Agent will note and record the lienagainst such Units. A standard form for this purpose is available on request with the Registrarand Transfer Agent.The Unit Holder will not be able to redeem / switch Units under lien until the lien holder provideswritten authorisation to the AMC / Mutual Fund / Registrar and Transfer Agent that the lien isdischarged. As long as Units are under lien, the lien holder will have complete authority toexercise the lien, thereby redeeming such Units and receiving payment proceeds. In suchinstance, the Unit Holder will be informed by the Registrar and Transfer Agent through anaccount statement. In no case will the Units be transferred from the Unit Holder to a lien holder.Dividends declared on Units under lien will be paid / reinvested to the credit of the Unit Holderand not the lien holder.The Units of the Scheme are not transferable. In view of the same, additions / deletions of nameswill not be allowed under any folio of the Scheme. The above provisions in respect of deletions ofnames will not be applicable in case of death of Unit Holder (in respect of joint holdings) as this istreated as transmission of Units and not transfer.B. ONGOING OFFER DETAILSOngoing Price for Subscription (Purchase)/ Switch-In (from other Schemes / Plans ofthe JPMorgan Mutual Fund) by investorsThis is the price you need to pay forPurchase / Switch-In.At the applicable NAV.34

Ongoing Price for Redemption (Sale) /Switch-Outs (to other Schemes / Plans ofthe JPMorgan Mutual Fund) by InvestorsThis is the price you will receive forRedemptions / Switch-Outs. Example: Ifthe applicable NAV is Rs. 10, exit load is 2%then Redemption price will be: Rs. 10* (1-0.02) = Rs. 9.80Cut-off timing for Subscriptions /Redemptions / Switches.This is the time before which your application(complete in all respects) should reach theofficial points of acceptance.At the applicable NAV subject to prevailing Exit Load.The Cut-off time for the Scheme is 3.00 pm on a Business Day and the Applicable NAV will be asunder:For Purchase:a. Where the application is received upto 3.00 pm on a Business Day with a local cheque ordemand draft payable at par at the place where it is received, with amount less than Rs.1 crore - Closing NAV of the day of receipt of application;b. Where the application is received after 3.00 pm on a Business Day with a local cheque ordemand draft payable at par at the place where it is received, with amount less than Rs.1 crore - Closing NAV of the next Business Day;c. Where the application is received with a local cheque or demand draft payable at par atthe place where it is received, with amount equal to or more than Rs. 1 croreirrespective of the time of receipt of application, the closing NAV of the day on whichthe funds are available for utilisation shall be applicable.Applicability of NAV for the Scheme with an amount equal to or more than Rs. 1 crore:a) For allotment of units in respect of purchase in the Scheme, the following needs to becomplied with:i. Application is received before the applicable cut-off time.ii. Funds for the entire amount of subscription/purchase as per the application arecredited to the bank account of the respective Scheme before the cutoff time.iii. The funds are available for utilization before the cut-off time without availing any creditfacility whether intra-day or otherwise, by the respective Scheme.b) For allotment of units in respect of switch-in to the Scheme from other schemes, thefollowing needs to be complied with:i. Application for switch-in is received before the applicable cut-off time.ii. Funds for the entire amount of subscription/purchase as per the switch-in request arecredited to the bank account of the respective switch-in Scheme before the cutoff time.iii. The funds are available for utilization before the cut-off time without availing any creditfacility whether intra-day or otherwise, by the respective switch-in Scheme or optionsthereunder.The above will be applicable only for cheques / demand drafts / payment instruments payablelocally in the city in which a Designated Collection Centre is located. No outstation cheques willbe accepted.Note: For the avoidance of doubt, where applications are received for an amount of less thanRs. 1 Crore on a Non-Business Day the closing NAV of the next Business Day shall be applicable.For Redemption:a. Where the application is received up to 3.00 pm on a Business Day - Closing NAV of theday of receipt of application; andb. Where the application is received after 3.00 pm on a Business Day - Closing NAV of thenext Business Day.Note: In case of applications received on a Non-Business Day the closing NAV of the nextBusiness Day shall be applicable.For Switches:Valid applications for 'Switch-out' shall be treated as applications for Redemption and validapplications for 'Switch-in' shall be treated as applications for Purchase, and the provisions ofthe cut-off time and the Applicable NAV mentioned above as applicable to Purchase andRedemption shall be applied respectively to the 'Switch-in' and 'Switch-out' applications.35

Where can the applications for Purchase /Redemption / Switches be submitted?Minimum amount for Purchase /Redemption / SwitchesMinimum balance to be maintained andconsequences of non maintenanceHow to redeemRight to limit RedemptionSpecial products availableThe details of official points of acceptance and Collection Banks’ are given at the end of this SID.Minimum Initial Application Amount: Rs. 5000 (Rupees Five Thousand only) per application andin multiples of Re. 1 (Rupee One only) thereafter.Minimum Additional Application Amount: Rs. 1000 (Rupees One Thousand only) per applicationand in multiples of Re. 1 thereafter.Minimum Amount / No. of Units for Redemption: Rs. 5000 (Rupees Five Thousand only) or 500(five hundred) Units.Valid applications for 'Switch-out' shall be treated as applications for Redemption and validapplications for 'Switch-in' shall be treated as applications for Purchase and the abovementioned provisions shall apply accordingly.Subject to the minimum amount mentioned above, in case of a request for Switch for 'All Units'or the 'Entire Amount', fractions will be allowed.The minimum balance after Redemption shall be Rs. 5,000/-. In case the balance falls below Rs.5,000/- all remaining Units in that account will be automatically redeemed. Eg. If the balance inan investor folio is Rs. 21,000/- and the investor gives redemption request for Rs. 20,000/- thenthe whole Rs. 21000/- shall be redeemed.A Transaction Slip can be used by the Unit Holder to request for Redemption. The requisitedetails should be entered in the Transaction Slip and submitted at an ISC or the AMC offices.Transaction Slips can be obtained from any location of the ISCs or the AMC offices.The Trustee may, in the general interest of the Unit Holders of the Scheme and when consideredappropriate to do so based on unforeseen circumstances / unusual market conditions, limit thetotal number of Units which may be redeemed on any Business Day to 5% of the total number ofUnits then in issue, under the Scheme and option(s) thereof, or such other percentage as theTrustee may determine. Any Units which consequently are not redeemed on a particularBusiness Day will, subject to the further application of the Trustee's right to limit Redemption, becarried forward for Redemption to the next Business Day. Redemptions so carried forward willbe priced on the basis of the Applicable NAV (subject to the prevailing Exit Load) of the BusinessDay on which Redemption is made. Under such circumstances, to the extent multipleRedemption requests are received at the same time on a single Business Day, Redemptions willbe made on a pro-rata basis, the balance amount being carried forward for Redemption to thenext Business Day. In the aforementioned circumstances, the Trustee reserves the right, in itssole discretion, to limit Redemptions with respect to any single account to an amount of Rs. 1lakh in a single day.1. Systematic Investment Plan (SIP)This facility enables investors to save and invest periodically over a period of time. It is aconvenient way to "invest as you earn" and affords the investor an opportunity to enter themarket regularly, thus averaging the acquisition cost of Units. The conditions for investing in SIPwill be as follows:(a)(b)(c)The date of the first cheque shall be the same as the date of the application while theremaining cheques (minimum five payment instructions / cheques) shall be post-datedcheques (dated uniformly either the 1st, 10th, 15th or 25th of a month). Alternatively, thepayment under SIP may be made through a distributor with whom the AMC has made anarrangement for payment of investment money through ECS / NEFT / RTGS or in anymanner acceptable to the AMC.Purchases can be made only on fortnightly, monthly and quarterly basis under SIP.All cheques / payment instructions (including the first cheque / payment instruction)shall be of equal amounts.(d) The minimum amount of each cheque / payment instruction shall be Rs. 1,000/-.36

(e) The aggregate of such cheques / payment instructions shall not be less than Rs. 6,000/-,i.e. minimum six cheques in case of fortnightly, monthly and quarterly SIP. There is noupper Purchase limit for a single cheque / payment instruction or in aggregate.(f)(g)If the previous folio number is not mentioned, an extension of an existing SIP will betreated as a new SIP on the date of such application and all the above conditions need tobe met with.The load structure prevailing at the time of submission of the SIP application (whetherfresh or extension) will apply for all the instalments indicated in such an application.The Units will be allotted to the investor at the Applicable NAV on the respective dates on whichthe investments are effected to be made. However, if any of the dates on which an investment issought to be made is a non Business Day, the Units will be allotted at the Applicable NAV of thenext Business Day. Any Unit Holder can avail of this facility subject to certain terms andconditions detailed in the Application Form. This facility is available only if the Application Form/ Transaction Slip along with the post-dated cheques / ECS mandate / payment instructions ishanded over to an ISC / Collection Centre.Investors should note that an application for SIP can be submitted at Designated CollectionCenters.For applicable load on Purchases through SIP please refer to Section IV - Fees and Expenses.2. Systematic Withdrawal Plan (SWP)This facility enables the Unit Holders to withdraw sums from their accounts in the Scheme atperiodic intervals through a one-time request. The withdrawals can be made fortnightly,monthly and quarterly basis on any date specified by the Unit Holder subject to that date being aBusiness Day. The minimum amount in rupees for withdrawal under the SWP facility shall be Rs.1,000/-, while the minimum number of Units for withdrawal shall be 100 Units. In case theminimum balance falls below these limits, the AMC may redeem all the Units. The withdrawalswill commence from the start date mentioned by the Unit Holder in the Application Form for thefacility. The Units will be redeemed at the Applicable NAV on the respective dates on which suchwithdrawals are sought. However, if any of the dates on which the Redemption is sought is a non-Business Day, the Units will be redeemed at the Applicable NAV of the next Business Day. Thisfacility is explained by way of an illustration below:Date Amount Amount Assumed * Units Unit Value afterinvested withdrawn under NAV per redeemed Balance** SWP(Rs.) SWP (Rs.) Unit (Rs.) (Rs.)1-Jan-06 100,000 10.00 10,000 100,000.007-Feb-06 1,000 10.15 98.522 9,901 100,500.007-Mar-06 1,000 10.25 97.561 9,804 100,490.157-Apr-06 1,000 10.35 96.618 9,707 100,470.547-May-06 1,000 10.45 95.694 9,612 100,441.277-Jun-06 1,000 10.55 94.787 9,517 100,402.437-Jul-06 1,000 10.65 93.897 9,423 100,354.117-Aug-06 1,000 10.75 93.023 9,330 100,296.407-Sep-06 1,000 10.85 92.166 9,238 100,229.397-Oct-06 1,000 10.95 91.324 9,146 100,153.177-Nov-06 1,000 11.05 90.498 9,056 100,067.817-Dec-06 1,000 11.25 88.889 8,967 100,878.997-Jan-07 1,000 11.35 88.106 8,879 100,775.69* The NAVs in the table above are purely illustrative and should not be understood or construedas assured or guaranteed returns. Entry and Exit Loads are assumed to be NIL for the purpose ofthe illustration.** Previous balance less Units redeemed.For applicable load on Redemptions through SWP please refer to Section IV - Fees and Expenses.37

3. Systematic Transfer Plan (STP)This facility enables Unit Holders to transfer fixed amounts from their accounts in the Scheme toother schemes launched by the Mutual Fund from time to time. The transfers under this facilitycan be made on a daily / weekly / fortnightly / monthly / quarterly basis. The provision ofminimum Purchase / Redemption amount with respect to the Scheme will not be applicable fortransfers made under this facility. The transfer will commence from the date mentioned by theUnit Holder in the Application Form for the facility and will take place daily / weekly / fortnightly/ monthly / quarterly on the day specified by the Unit Holder. The Units will be allotted /redeemed at the Applicable NAV of the respective Business Day on which such investments /withdrawals are effected. In case the day on which the investment / withdrawal is sought to bemade, is not a Business Day for the Scheme, then the application for the facility will be deemedto have been received on the immediately following Business Day. The minimum amount inrupees for switch under the STP facility shall be Rs. 1,000/-, while the minimum number of Unitsshall be 100 Units. In case the minimum balance falls below these limits, the AMC has thediscretionary but not the obligation to transfer all the Units.Lien on Units for LoansAccount Statements for the SchemeThe Account Statement shall not beconstrued as a proof of title and is only acomputer generated statement indicatingthe details of transactions under theScheme(s) and is a non-transferabledocument.The Account Statement will be issued in lieuof Unit Certificates.Normally no Unit certificates will be issued.However, if the applicant so desires, the AMCshall issue a nontransferable Unit certificateto the applicant within 30 days of the receiptof request for the certificate. Unit certificateif issued must be duly discharged by the UnitHolder(s) and surrendered along with therequest for redemption / switch or any othertransaction of Units covered therein.Units may be offered as security by way of a lien / charge in favour of scheduled banks, financialinstitutions, non-banking finance companies (NBFCs) or any other body. The Registrar andTransfer Agent will note and record the lien against such Units. A standard request letter for thispurpose is available on request with the Registrar and Transfer Agent or the AMC.The Unit Holder will not be able to redeem / switch Units under lien until the lien holder provideswritten authorization to the Mutual Fund / AMC / Registrar and transfer Agent that the lien /charge may be vacated. As long as Units are under lien, the lien holder will have completeauthority to exercise the lien, thereby redeeming such Units and receiving payment proceeds. Insuch instance, the Unit Holder will be informed by the Registrar and Transfer Agent through anaccount statement. In no case will the Units be transferred from the Unit Holder to the lienholder. Dividends declared on Units under lien will be paid / re-invested to the credit of the UnitHolder and not the lien holder unless specified otherwise in the lien letter.• The AMC shall allot the Units to the applicants whose application has been accepted and alsosend confirmations specifying the number of Units allotted to the applicant by way of e-mailand / or SMS to the applicant's registered e-mail address and / or mobile number as soon aspossible but not later than 5 (Five) Business Days from the date of closure of the allotmentand / or from the date of receipt of the specific request for account statement from the UnitHolders. For ongoing period, CAS for each calendar month to the Unit Holder(s) in whosefolio(s) transaction(s) has / have taken place during that calendar month shall be sent on orbefore 10th of the succeeding calendar month. In case of any specific request for accountstatement received from a Unit Holder, the account statement would be sent to the UnitHolder within 5 (Five) Business Days from the receipt of such request.• For the purpose of sending CAS, common investors across mutual funds shall be identifiedby their PAN.• The CAS shall not be received by the Unit Holders for the folio(s) not updated with PANdetails. The Unit Holders are therefore requested to ensure that the folio(s) are updated withtheir PAN.• The statement of holding of the beneficiary account holder for Units held in dematerializedform will be sent by the respective Depository Participants periodically.Further, the CAS detailing holdings across all schemes of all mutual funds at the end of every 6(Six) calendar months (i.e. September / March), shall be sent by mail / e-mail on or before the10th day of succeeding calendar month, to all such Unit Holders in whose folios no transactionhas taken place during that period. The half yearly CAS will be sent by e-mail to the Unit Holderswhose e-mail address is available, unless a specific request is made to receive the same in38

physical form.Allotment of Units and dispatch of account statements to FIIs will be subject to RBI approval.Upon allotment of Units an account statement will be sent to each Unit Holder stating thenumber of Units allotted. With effect from October 1, 2010 mutual fund units held indematerialized account only are freely transferable, this is as per the SEBI circular no. CIR / IMD /DF / 10 / 2010 dated August 18, 2010. All other forms of Units of the Schemes are nottransferable. TheTrustees may issue a Unit Certificate in lieu of the account statement in respect of the Units heldto such Unit Holders who request for the same, after receipt of a specific request from the UnitHolder. The Trustees reserve the right to make the Units transferable at a later date subject toSEBI Regulations issued from time to time. In view of the same, additions / deletion of names willnot be allowed under any folio of the Scheme.The above provisions in respect of deletion of names will not be applicable in case of death ofUnit Holder (in respect of joint holdings) as this is treated as transmission of Units and nottransfer.DividendRedemptionThe dividend warrants shall be dispatched to the Unit Holders within 30 days of the date ofdeclaration of the dividend.PAYMENT OF PROCEEDS1. Resident InvestorsRedemption proceeds will be paid by cheques, marked "A/c Payee only" and drawn in the nameof the sole holder / first-named holder (as determined by the records of the Registrar).The Mutual Fund will endeavor to dispatch the Redemption proceeds within 3 Business Daysfrom the acceptance of the Redemption request, but not beyond 10 Business Days from the dateof acceptance of the Redemption request. If the payment is not made within the periodstipulated in the Regulations, the Unit Holder shall be paid interest @15% p.a. for the delayedperiod and the interest shall be borne by the AMC.The bank name and bank account number, as specified in the Registrar and transfer agentrecords, will be mentioned in the cheque. The cheque will be payable at par at all the citieshaving ISCs. If the Unit Holder resides in any other city, he will be paid by a demand draft payableat the city of his residence and the demand draft charges shall be borne by the AMC. Theproceeds may be paid by way of direct credit / NEFT / RTGS or in any other manner throughwhich the investor's bank account specified in the Registrar and transfer agent records may becredited with the Redemption proceeds.The AMC provides direct credit facility with 10 banks currently. Please refer to section“Instructions & Notes” in Common Application Form for further details.Note: The Trustee, at its discretion at a later date, may choose to alter or add other modes ofpayment.The Redemption proceeds will be sent by courier or (if the addressee city is not serviced by thecourier) by registered post. The dispatch for the purpose of delivery through the courier / postaldepartment, as the case may be, shall be treated as delivery to the investor. The AMC / Registrarare not responsible for any delayed delivery or non-delivery or any consequences thereof, if thedispatch has been made correctly as stated in this paragraph.2. Non-Resident Indian InvestorsFor NRIs, Redemption proceeds will be remitted depending upon the source of investment asfollows:39

(a) Repatriation BasisWhen Units have been purchased through remittance in foreign exchange from abroad or bycheque / draft issued from proceeds of the Unit Holder's FCNR deposit or from funds held in theUnit Holder's Non Resident (External) Rupee account kept in India, the proceeds can be remittedto the Unit Holder in foreign currency (any exchange rate fluctuation will be borne by the UnitHolder). The proceeds can also be sent to his Indian address for crediting to his Non-Resident(External) Rupee Account (NRE) / Foreign Currency (Non-Resident) Account (FCNR) / Nonresident(Ordinary) Account (NRO), if desired by the Unit Holder.(b) Non Repatriation BasisWhen Units have been purchased from funds held in the Unit Holder's non-resident (Ordinary)account, the proceeds will be sent to the Unit Holder's Indian address for crediting to the UnitHolder's non-resident (Ordinary) account.For FIIs, the designated branch of the authorised dealer may allow remittance of net sale /maturity proceeds (after payment of taxes) or credit the amount to the foreign currency accountor Non -resident Rupee account of the FII maintained in accordance with the approval granted toit by the RBI.The Scheme will not be liable for any delays or for any loss on account of any exchangefluctuations, while converting the rupee amount in foreign exchange in the case of transactionswith NRIs / FIIs.The Scheme may make other arrangements for effecting payment of Redemption proceeds infuture.The Unit Holder has the option to request for Redemption either in amount in Rupees or innumber of Units.Units purchased by cheque may not be redeemed until after realization of the cheque. In casethe investor mentions the number of Units as well as the amount, then the amount will beconsidered for processing the Redemption request. In case the investor mentions the number ofUnits or the amount in words and figures, then the value in words will be taken for processing theRedemption request.If the redemption request amount exceeds the balance lying to the credit of the Unit Holder'ssaid account, then the fund shall redeem the entire amount lying to the credit of the UnitHolder's account in that Scheme/Plan/option.If an investor has purchased Units on more than 1 (one) Business Day, the Units purchased priorin time (i.e. those Units which have been held for the longest period of time), are deemed to havebeen redeemed first, i.e. on a first in first out basis except when the Unit Holder specificallyrequests Redemption of Units purchased on specific date(s). If multiple Purchases are made onthe same day, the Purchase appearing earliest in the account statement will be redeemed first.The minimum amount in rupees for Redemption shall be Rs. 1000/- or account balancewhichever is less.The Mutual Fund will endeavour to dispatch the Redemption or repurchase proceeds to the UnitHolders normally within 3 Business Days from the date of acceptance of the Redemption orrepurchase request; however investors should be aware that regulatory timelines currentlyspecify 10 Business Days.40

Delay in payment of redemption /repurchase proceedsBank Account DetailsThe AMC shall be liable to pay interest to the Unit Holders at such rate as may be specified bySEBI for the period of such delay (presently @ 15% per annum). Interest shall be payable if thereis a delay in payment of Redemption proceeds beyond 10 Business Days.As per the directives issued by SEBI, it is mandatory for applicants to mention their bank accountnumbers in their applications for Purchase or Redemption of Units. If the Unit Holder fails toprovide the bank mandate, the request for Redemption would be considered as not valid and theMutual Fund retains the right to withhold the Redemption request or the Redemption proceedsuntil a proper bank mandate is furnished by the Unit Holder and the provision with respect ofpenal interest in such cases will not be applicable / entertained.C. PERIODIC DISCLOSURESNet Asset ValueThis is the value per Unit of the Scheme ona particular day. You can ascertain thevalue of your investments by multiplyingthe NAV with your Unit balance.Half yearly Disclosures:Portfolio / Financial Results:The Mutual Fund will declare the NAV of the Scheme on every Business Day on the website ofAMFI (www.amfiindia.com) by 9.00 pm and also on its own website - www.jpmorganmf.com.TheMutual Fund will publish on all Business Days the NAVs, Purchase Price and Redemption Price ofthe Scheme in at least two daily newspapers.Investors may obtain NAV information on anyBusiness Day by calling the office of the AMC or any of the ISCs.The Mutual Fund shall, before the expiry of one month from the close of each half year (March 31and September 30) publish its unaudited financial results in one English daily newspaper havingnationwide circulation and in a newspaper published in the language of the region where thehead office of the fund is situated. These shall also be displayed on the websites of the MutualFund and of AMFI.Full portfolio details, in the prescribed format, shall also be disclosed either by publishing themin the newspapers as mandated by SEBI or by sending these to the Unit Holders within 1 (one)month from the end of each half-year and these shall also be displayed on the website of theMutual Fund.Annual Report An annual report of the Scheme will be prepared as at the end of each financial year (March 31)and copies of the report or an abridged summary thereof will be mailed to all Unit Holders assoon as possible but not later than 4 (Four) months from the closure of the relevant financialyear. If the report is mailed in a summary form, the full report will be available for inspection atthe registered office of the Mutual Fund and a copy thereof on request to the Unit Holders onpayment of a nominal fee.In case of Unit Holders whose e-mail addresses are available to the Mutual Fund, the AMC shallsend the annual report of the Scheme only by e-mail. In case of the investors who wish to receivethe annual report in physical form they should indicate the same to the AMC.41

Associate TransactionsTaxation:The rates mentioned herein are as per theFinance Act, 2012.The information is provided for generalinformation only. However, in view of theindividual nature of the implications, eachinvestor is advised to consult his or her owntax advisors / authorised dealers with respectto the specific amount of tax and otherimplications arising out of his or herparticipation in the schemes.Please refer to the Statement of Additional Information.JPMorgan India Short TermIncome FundResident Investors*Mutual Fund**Tax on Dividend Nil Tax on income distribution to:Individual and HUF unitholders - 12.5 per cent ofamount distributedShort-term capital gainsLong-term capital gainsBusiness Income10 - 30 per cent based on thelegal status and the totalincome of the investor ##10 per cent (20 per cent withindexation) #10 - 30 per cent based onthe total income of theinvestor ##Other Unit Holders - 30 percent of amount distributedNilNilNilSince JPMorgan India Short Term Income Fund does not qualify as equity oriented mutual fund,no Securities Transaction Tax (STT) is payable by the Unit Holders on redemption/ repurchase ofunits by the Fund.*The tax rate would be increased by a surcharge of:(a) 5 per cent - in case of domestic corporate Unit Holders, where the total income exceeds Rs10,000,000/- (One Crore Rupees).(b) Nil - in case of individuals, firms, local authority and co-operative societiesFurther, an additional surcharge of 3 per cent by way of education cess would be charged onamount of tax inclusive of surcharge for all Unit Holders.**The tax would be increased by a surcharge of 5 per cent and an additional surcharge by way ofeducation cess at the rate of 3 per cent on the amount of tax inclusive of surcharge.# Where the tax payable on such long-term capital gains, exceeds 10 per cent of the amount ofcapital gains computed before indexation, such excess tax shall not be payable by the UnitHolder. Further, in case of resident individuals and HUFs, where the total income as reduced bylong-term capital gains, is below the basic exemption limit, the long-term capital gains will bereduced to the extent of the shortfall and only the balance long-term capital gains will besubjected to the 20 per cent tax or the 10 per cent tax, as the case may be.## Assuming that the total income in case of individuals, HUF/ Association of Persons (AOP)/Body of Individuals (BOI) exceeds the basic exemption limit [Rs 500,000 (Five Lakh Rupees) incase of resident individual of an age of 80 years or more, Rs 250,000 (Two Lakh Fifty ThousandRupees) in case of resident individual of an age of 60 years or more but less than 80 years and Rs200,000 (Two Lakh Rupees) in case of resident in India below 60 years of age (including HUF,AOP/ BOI)].Note: An equity oriented fund has been defined as a scheme of a Mutual Fund where theinvestible funds are invested in equity shares of domestic companies to the extent of more than65 per cent of the total proceeds of such fund. The percentage of equity shareholding of the fundshall be computed with reference to the annual average of the monthly averages of the openingand closing figures.42

For further details on taxation please refer to the clause on Taxation in the SAI.The above is intended as a general guide only and does not necessarily describe the taxconsequences for all types of investors in the Fund and no reliance, therefore, should be placedupon them. Each investor is advised to consult his or her own tax consultant with respect to thespecific tax implications.Investor servicesAny complaints should be addressed to Mr. Anutosh Bose, who has been appointed as theinvestor relations officer. He can be contacted at:Address: J.P. Morgan Tower, Off. C.S.T. Road, Kalina,Santacruz - East, Mumbai – 400 098.Telephone:91-22 – 6157 3000Fax: 91-22 – 6157 4170E-mail:India.investors@jpmorgan.comD. COMPUTATION OF NAVCalculation of NAVThe NAV under the Scheme shall be calculated by the method shown below:NAV (Rs.) =Market or fair value of the scheme's investments + receivables + accrued income + other assets -(accrued expenses + payables + other liabilities and provisions)No. of Units outstanding under the SchemeComputation of NAV, will be done after taking into account dividendspaid, if any, and the distribution tax thereon, if applicable. Therefore,once dividends are distributed under the Dividend Option, the NAV ofthe Units under the Dividend Option would always remain lower thanthe NAV of the units issued under the Growth Option. The incomeearned and the profits realized in respect of the Units issued under theGrowth Option remain invested and are reflected in the NAV of theUnits.The valuation of the Scheme's assets and calculation of the Scheme'sNAV shall be subject to audit on an annual basis and such regulationsas may be prescribed by SEBI from time to time.The NAV shall be calculated and announced on all Business Days.The AMC will calculate the NAV of the Scheme on every Business Dayand disclose the NAV of the scheme on the same Business Day.IV.FEES AND EXPENSESThis section outlines the expenses that will be charged to the Schemes.A. NEW FUND OFFER (NFO) EXPENSESThese expenses are incurred for the purpose of various activitiesrelated to the NFO like sales and distribution fees paid marketing andadvertising, registrar expenses, printing and stationery, bank chargesetc.No NFO expenses have been charged to the Scheme and instead suchNFO expenses shall be borne by the AMC, subject to SEBI Regulations.B. ANNUAL SCHEME RECURRING EXPENSESThese are the fees and expenses for operating the Scheme. Theseexpenses include investment management and advisory fee chargedby the AMC, the Registrar and Transfer Agents' fee, marketing andselling costs etc. as given in the table below:The AMC has estimated that upto 2.25% of the daily average net assetsof the Scheme will be charged to the Scheme as expenses. For theactual current expenses being charged, the investor should refer to thewebsite of the Mutual Fund (www.jpmorganmf.com).43

% of daily average Net Assets (per annum) by the AMC or by the Trustee or the Sponsor.1.250.100.03ParticularsInvestment management & advisory FeeCustodial feesRegistrar & Transfer Agent fees including costrelated to providing accounts statement, dividend/ redemption cheques / warrants etc.Marketing and selling expenses including agent’scommission and statutory advertisementBrokerage and transaction cost pertaining to thedistribution of unitsAudit fees / fees and expenses of the TrusteeCosts related to investor communicationsCosts of fund transfer from location to locationOther Expenses*Total Recurring Expenses0.600.020.010.100.142.25*Other expenses: Any other expenses which are directly attributable tothe Scheme may be charged with approval of the Trustee within theoverall limits as specified in the Regulation 52(6) of the SEBIRegulations except those expenses which are specifically prohibited.The AMC reserves the right to change the above, both inter se or intotal, subject to prevailing SEBI Regulations.The purpose of the above table is to assist in understanding the variouscosts and expenses that the Unit Holder in the Scheme will beardirectly or indirectly.The AMC reserves the right to calculate investment management andadvisory fees or recurring expenses on the basis of daily or weeklyaverage net assets depending on the periodicity of publication of NAV.C. LOAD STRUCTURELoad is an amount which is paid by the investor to subscribe to theUnits or to redeem the Units from a Scheme. This amount is used by theAMC to pay commissions to the distributor and to take care of othermarketing and selling expenses. Load amounts are variable and aresubject to change from time to time. For the current applicablestructure, please refer to the website of the AMC(www.jpmorganmf.com) or investors may call at (toll free no.1-800-200-5763) or their distributor.Entry Load (For NFO & Ongoing Offer basis): NILExit Load (For NFO & Ongoing Offer basis):For each RedemptionWithin six months from the date of allotment inrespect of Purchase made other than through SIP:Within six months from the date of allotment inrespect of each Purchase made through SIP:Exit Load (% ofApplicableNAV)0.60%0.60%The above estimates for recurring expenses for the Scheme are basedon the corpus size of Rs. 1000 million, and may change to the extentassets are lower or higher.The AMC reserves the right to change the estimates, both inter se or intotal, subject to prevailing SEBI Regulations.The AMC may incur actual expenses which may be more or less thanthose estimated above under any head and / or in total. The AMC willcharge the Scheme such actual expenses incurred, subject to thestatutory limit prescribed in the Regulations, as given below.Maximum Recurring Expenses:Daily average net assetsMaximum, as a % of dailyaverage net assets per annumFirst Rs. 100 Crores 2.25%Next Rs. 300 Crores 2.20%Next Rs. 300 Crores 1.75%Balance of assets (over and above Rs. 700 Crores) 1.50%Maximum Investment Management Fee to be charged by the AMC:Daily average net assetsMaximum, as a % of dailyaverage net assets per annumFirst Rs. 100 Crores 1.25%Balance assets 1.00%Any expenditure in excess of the SEBI Regulatory limits shall be borneA switch-out or a withdrawal under SWP shall also attract an Exit Loadlike any Redemption.There will be no Load for Units created as a result of dividendreinvestment and bonus Units.No Loads will be chargeable in case of switches made betweendifferent Scheme options.A maximum of 1% of the redemptionproceeds shall be maintained in a separate account and will be utilizedto meet the distribution and marketing expenses. Any balance shall becredited to the Scheme immediately.To know the latest position on Load structure prior to investing /Redemption investors are advised to contact any of the ISCs or the AMCat its toll-free number 1800-200-5763.Load exemptions:As per SEBI guidelines Bonus Units and Units issued on reinvestment ofdividends shall not be subject to entry and exit load.All loads for the Scheme shall be maintained in a separate account andmay be utilised towards meeting the selling and distribution expenses.Any surplus in this account may be credited to the Scheme, wheneverfelt appropriate by the AMC.The investor is requested to check the prevailing load structure of theScheme before investing.Subject to the SEBI Regulations, the Trustee retains the right to change44

impose an Entry / Exit Load, subject to the provisions below.(a)(b)(c)Any imposition or enhancement of load in future shall beapplicable on prospective investments only.The AMC shall arrange to display a notice in all the ISCs / AMCoffice before changing the prevailing load structure. Anaddendum detailing the changes in load structure will beattached to SIDs and Application Forms. Unit Holders /prospective investors will be informed of changed / prevailingload structures through various means of communication such aspublic notice in one English daily newspaper having nationwidecirculation as well as in a newspaper published in the language ofthe region where the Head Office of the Mutual Fund is situatedand / or display at ISCs / distributors' offices, on accountstatements, acknowledgements, investor newsletters, etc. Theintroduction of the exit load along with the details may bestamped in the acknowledgement slip issued to the investors onsubmission of the application form and may also be disclosed inthe statement of accounts issued after the introduction of suchload.The Redemption Price will not be lower than 93% of theApplicable NAV and the Purchase Price will not be higher than107% of the Applicable NAV, provided that the differencebetween the Redemption Price and the Purchase Price at anypoint in time shall not exceed the permitted limit as prescribed bySEBI from time to time, which is currently 7% calculated on thePurchase Price.For any changes in load structure, the AMC will issue an addendum anddisplay it on the website / Investor Service Centres.D. TRANSACTIONS UNDER A POWER OF ATTORNEY (PoA)An applicant wishing to transact through a PoA must lodge thephotocopy of the PoA attested by a notary public or the original PoA(which will be returned after verification). Applications are liable to berejected if the PoA in the manner as mentioned above is not submitted.The enclosure of original PoA should be duly indicated in theApplication Form / Transaction Slips. In case the application forsubscription is accepted by the AMC without the PoA, the units underthe folio cannot be redeemed unless the PoA has been submitted to theAMC.E. APPLICATION BY NON-INDIVIDUAL INVESTORSIn case of an application by a company, body corporate, society, mutualfund, trust or any other organisation not being an individual, a dulycertified copy of the relevant resolution specifying the relevantpersonnel authorized to sign on behalf of the company to invest in theunits of mutual fund(s) or a document providing evidence of theauthority of the organisation to invest in units of mutual fund(s) such asthe Scheme, along with the updated specimen signature list ofauthorized signatories (duly certified) must be lodged along with theApplication Form / Transaction Slip at a Designated Collection Center,if not submitted earlier. Further, the AMC may require that a certifiedcopy of the incorporation deeds / constitutive documents (e.g.memorandum of association and articles of association) be submitted.F. MODE OF HOLDINGAn application can be made by up to a maximum of three applicants.Applicants must specify the 'mode of holding' in the Application Form.If an application is made by one Unit Holder only, then the mode ofholding will be considered as 'Single '.If an application is made by more than one investors, they have anoption to specify the mode of holding as either 'Joint' or 'Anyone orSurvivor'. If the mode of holding is specified as 'Anyone or Survivor', aninstruction signed by any one of the Unit Holders will be acted upon bythe Mutual Fund. It will not be necessary for all the Unit Holders to signthe instructions.In case of joint applications, if the investor has not mentioned themode of holding, it shall be deemed as 'Anyone or Survivor'.If the mode of holding is specified as 'Joint', all instructions to theMutual Fund would have to be signed by all the Unit Holders, jointly.The Mutual Fund will not be empowered to act on the instruction of anyone of the Unit Holders in such cases.In all cases, all communication to Unit Holders (including accountstatements, statutory notices and communication, etc.) will beaddressed to the Unit Holder whose name appears first in terms ofpriority in the Unit Holder register. All payments, whether forRedemptions, dividends, etc. will be made favouring the first-namedUnit Holder. Service of a notice on or delivery of a document to any oneof several joint Unit Holders shall be deemed effective service on ordelivery to the other joint Unit Holders.Any notice or document so sent by post to or left at the address of aUnit Holder appearing in the Unit Holder register shall,notwithstanding that such Unit Holder be then dead or bankrupt andwhether or not the Trustee or the AMC has notice of such death orbankruptcy, be deemed to have been duly served and such serviceshall be deemed a sufficient service on all persons interested (whetherjointly with or as claiming through or under the Unit Holder) in theUnits concerned.Investors should carefully study the section on 'Transmission of Units' ,'Change in Guardian' and 'Nomination Facility' given in the SAI, beforeselecting the relevant box pertaining to the mode of holding in theApplication Form.V. RIGHTS OF UNITHOLDERSPlease refer to SAI for details.VI.PENALTIES, PENDING LITIGATION OR PROCEEDINGS,FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICHACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OFBEING TAKEN BY ANY REGULATORY AUTHORITY1. All disclosures regarding penalties and action(s) taken againstforeign Sponsor(s) may be limited to the jurisdiction of thecountry where the principal activities (in terms of income /45

evenue) of the Sponsor(s) are carried out or where theheadquarters of the Sponsor(s) is situated. Further, only top 10monetary penalties during the last three years shall be disclosed.Nil2. In case of Indian Sponsor(s), details of all monetary penaltiesimposed and/ or action taken during the last three years orpending with any financial regulatory body or governmentalauthority, against Sponsor(s) and/ or the AMC and/ or the Boardof Trustees /Trustee Company; for irregularities or for violationsin the financial services sector, or for defaults with respect toshare holders or debenture holders and depositors, or foreconomic offences, or for violation of securities law. Details ofsettlement, if any, arrived at with the aforesaid authorities duringthe last three years shall also be disclosed.Nil3. Details of all enforcement actions taken by SEBI in the last threeyears and/ or pending with SEBI for the violation of SEBI Act, 1992and Rules and Regulations framed there under includingdebarment and/ or suspension and/ or cancellation and/ orimposition of monetary penalty/adjudication/enquiryproceedings, if any, to which the Sponsor(s) and/ or the AMC and/or the Board of Trustees /Trustee Company and/ or any of thedirectors and/ or key personnel (especially the fund managers) ofthe AMC and Trustee Company were/ are a party. The details ofthe violation shall also be disclosed.Nil4. Any pending material civil or criminal litigation incidental to thebusiness of the Mutual Fund to which the Sponsor(s) and/ or theAMC and/ or the Board of Trustees /Trustee Company and/ or anyof the directors and/ or key personnel are a party should also bedisclosed separately.Nil5. Any deficiency in the systems and operations of the Sponsor(s)and/ or the AMC and/ or the Board of Trustees/Trustee Companywhich SEBI has specifically advised to be disclosed in the SID, orwhich has been notified by any other regulatory agency, shall bedisclosed.NilNo penalties have been awarded by SEBI under the SEBI Act or the SEBIRegulations against the Sponsor or the AMC or the Trustee, or any of itsdirectors or key personnel (specifically the fund managers) of the AMCand the Trustee.The above information has been disclosed in good faith as per theinformation available to the AMC as at the date of this SID.Notwithstanding anything contained in this Scheme InformationDocument, the provisions of the SEBI Regulations and theguidelines there under shall be applicable.46

Registered office: JPMorgan Asset Management India Private LimitedJ.P. Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz - East, Mumbai – 400 098. Tel.: +91-22-6157 3000Website: www.jpmorganmf.com • Toll free number: 1-800-200-5763 (JPMF)Ahmedabad : 302, Megha House, Near Law Garden, Mithakhali Six Road, Navrangpura, Ahmedabad - 380 006. • Bengaluru : 501, 5th Floor,Prestige Centre Point, 7, Cunningham Road, Bengaluru - 560 052. Tel.: 91-80-41130070/71/72. • Chennai : T V Loganathan Towers, 2nd Floor, No.95, V. M. Street, R.K. Salai, Mylapore, Chennai - 600 004. Tel.: 98419 06112. • Kolkata : 22 Camac Street, Block-B, 5th Floor, Kolkata-700 016. Tel.:033-64590182. Fax: 033-22901929. • Mumbai : J.P. Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz - East, Mumbai – 400 098. Tel.: +91-22-61573000. • New Delhi : 715-716, 7th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi-110001. Tel.: 91-11- 66130802. • Pune : Office No. 301,Nandadeep, Above Odyssey Shop, F.C. Rd., Shivajinagar, Pune-411 005. Tel.: 020-66081000 / 01AdvantEdge: 26615123