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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
Page 4: Highlights / Summary of the SchemeI
Page 9 and 10: orrower's own equity. The lower the
Page 11 and 12: in breach of the rule shall be give
Page 13 and 14: Application FormARNA form to be use
Page 15 and 16: PlanPoAPurchasePurchase PriceRe. /
Page 17: Instruments Indicative Risk profile
Page 21 and 22: - Quotations - Similar to the price
Page 23 and 24: time to time (subject to the availa
Page 25 and 26: • Companies, bodies corporate, pu
Page 27 and 28: (f)(g)Any other person determined b
Page 29 and 30: Note: Initial Purchases through Fac
Page 31 and 32: 13. Any other photo ID card issued
Page 33 and 34: allowed to register Multiple Banks
Page 35 and 36: Ongoing Price for Redemption (Sale)
Page 37 and 38: (e) The aggregate of such cheques /
Page 39 and 40: physical form.Allotment of Units an
Page 41 and 42: Delay in payment of redemption /rep
Page 43 and 44: For further details on taxation ple
Page 45 and 46: impose an Entry / Exit Load, subjec
Page 48: Registered office: JPMorgan Asset M

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