CONTACT. November-2008 Creating. Wealth!

Transcription

1 CONTACT November-2008 Creating Wealth!

2 Addendum ADDENDUM TO THE SCHEME INFORMATION DOCUMENT/ KEY INFORMATION MEMORANDA OF ALL INCOME/DEBT ORIENTED SCHEMES OF JM FINANCIAL MUTUAL FUND 1. Applicability of NAV for all Income/ Debt Oriented Schemes of JM Financial Mutual SEBI vide its Circular No. SEBI/IMD/CIR No.11/142521/08 dated October 24, 2008 has stipulated the conditions for applicability of Net Asset Value (NAV) for Income/ Debt oriented Mutual scheme(s)/plan(s) (other than liquid fund schemes). Accordingly w.e.f October 30, 2008, the para regarding the cut off timing for subscriptions in the respective offer documents/ Scheme Information Document of the income/debt oriented schemes of JM Financial Mutual would stand modified as under; Irrespective of the time of receipt of application, in respect of all valid purchase applications with an amount equal to or more than Rs. 1 crore, the closing NAV of the day on which the funds are available for utilization will be considered. All other terms and conditions mentioned in the Offer Documents/ Scheme Information Documents / Key Information Memoranda of the Schemes remain unchanged. ADDENDUM TO OFFER DOCUMENT/ KEY INFORMATION MEMORANDUM OF JM MONEY MANAGER FUND SUPER PLUS PLAN 2. Changes in load structure of JM Money Manager Super Plus Plan With effect from October 31, 2008, the load structure of JM Money Manager Super Plus Plan will be modified as under: EXISTING LOAD STRUCTURE REVISED LOAD STRUCTURE Entry Load Exit Load Entry Load Exit Load NIL 0.10% if redeemed within 7 calendar days from the date of allotment of units NIL NIL Investors are requested to note that the changes in load structure shall be applicable for all prospective investments in the above Plan of JM Money Manager w.e.f. October 31, 2008 i.e. investments made on or after October 31, Investments made prior to the above changes would continue to attract the load structure and lock-in period as would have been applicable at the time of their respective investments. All other terms and conditions mentioned in the Offer Documents / Key Information Memoranda of the Schemes remain unchanged. CLARIFICATION TO THE ADDENDUM TO THE OFFER DOCUMENTS/ KEY INFORMATION MEMORANDA OF ALL EQUITY SCHEMES (EXCEPT JM ARBITRAGE ADVANTAGE FUND) PUBLISHED ON OCTOBER 2, 2008 Pursuant to the load structure changes for SIP Transactions communicated vide addendum dated October 1,2008, the provisions for valid SIP applications and the load on intra and inter equity switches would be as under: Entry Load : No entry-load for inter and intra-equity switches (excluding to and from JM Arbitrage Advantage and during NFO ). Exit Load : No exit load for inter and intra equity switches except in case of (i) switches by SIP/STP investors within 24 months (for cases registered from up to ) and within 12 months (for cases registered upto ) of respective SIP/STP installments (ii) switches by STP investors (for cases registered w.e.f ) within 24 months of respective STP installments (iii) switches to/from JM AAF from/to any equity schemes. In the event of non fulfillment of the criteria specified for a valid SIP application, the AMC reserves the right to revert all the previous allotments and reallot the units afresh with loads (in case of applications for SIP transactions routed through a broker/agent/distributor) as applicable on the respective due dates by treating them as normal investments. In addition the AMC may also recover the amount of load waived for all allotments directly from the investor or by debit to his folios maintained with JM Financial Mutual. The revertal and reprocessing of units in the above case would be subject to the investor meeting the minimum subscription amount (after deduction of permissible DD charges). In case an investor is unable to meet the minimum subscription criteria due to non fulfillment of the other conditions or discontinuation of the SIP on request by the investor, the AMC reserves the right to redeem/refund with current valuation on the date of review by the AMC.

3 A Monthly Update from JM Financial Mutual Details as on October 31, 2008 Market Update - Equity Economy The Indian money market witnessed hightened liquidity crisis during the month of October, in line with the global liquidity crunch. Outflows due to selling by FIIs in the stock markets, advance tax payment by corporates, and non rollovers of ECBs aggravated the liquidity crisis. This resulted in high call rates and high repo rates. As a policy response to the situation, the Reserve Bank of India (RBI), cut CRR by 100 bps to 5.5% (50 bps retrospectively from 25 October and 50 bps from 08 Nov). This will infuse 400 bn into the banking system. Repo has been reduced by 50 bps to 7.5% from 03 Nov This has been done to address the receding growth concerns. Also SLR reduced to 24% from 25% from 08 Nov This will give leeway of Rs 400 bn to the banks and will make more money available for credit. RBI has also announced a liquidity enhancing measure to buy back securities issued under MSS from banks. Inflation continued its downward trend as it fell to below 11% during the month; factors that led to lower inflation were a decline in global commodity prices. We reiterate that inflation and interest rates will continue its downward trend over the next few months. While India s growth will certainly slow down over the next few quarters; it would still be higher than its historical average and higher than many other emerging economies. The downside risks and upside revision to our estimates will depend on the trend of global commodity prices and the duration of the pain in global financial markets. Stock Market The month of October was the worst ever month for Indian stock markets with largest ever fall registered during any particular month; almost one fourth of the market capitalization was lost in a single month. The markets were driven by global events and were highly volatile with the NSE volatility index touching its high of over 90%. Key indices lost 24% (Nifty) and 26% (Sensex) of their value during the month. Almost all the sectors witnessed fall in value; however sectors like Realty and Metals were affected more as they fell by over 40%. Mid-cap and small-cap stocks were affected more amid falling volumes (daily average volume dropped over 15%). The fall was in line with global stock market meltdown which was the result of the global credit crunch. In October India witnessed net selling by FIIs amounting to US$3.2 bn. Liquidity is the single most concern for markets across the world, including India. Volatility in the markets today is driven by various factors at play. There is the slowing global economy and the stress in the financial sector globally which has led to a squeeze on liquidity and credit flow. The germination of the same was the US subprime problem and has rapidly spread to other parts of the US economy and has also flown abroad through complex derivative products which have impacted financial institutions all over the world. Rapid interest rate cuts by the US Fed and other central banks across the world (including RBI) have limited the damage to some extent. Market Outlook Every bear cycle is unique in its own way. For example, in past bear markets in India, we had not seen the markets fall more than 25-30% in any one calendar year. However this year, we have seen a fall of 60% already. The decline in values is unprecedented something we might not see for a long time to come. We are in the final stages of capitulation in the markets and the panic levels have reached unprecedented levels. An analysis of previous such panics show that from the panic bottoms formed, the next two years typically give strong returns for those who stay back. As a strategy, nine months ago, we shifted our portfolio to companies with strong cash flows and those that do not need to raise capital in the immediate future for their growth. The companies in our portfolios are still growing strongly and we believe will outperform the markets as the situation stabilizes. We have tried to improve the liquidity of our funds so that stock reshuffles and redemptions, if any, can be handled easily. As such, we are not inclined to increase our cash levels at this stage and would like to revisit the cash strategy only subsequent to a significant pullback that will follow the panic bottom formation. However, the economy is likely to face a tough time over the next six months and we propose to be vigilant in analyzing our portfolio companies and reacting to the evolving situations more proactively. We are extremely bullish on the prospects of the Indian economy as well as the markets over the next few years. The big bull market in India is yet to unfold and will be seen over the next 10 to 15 years. This will be very different from 2003 to 2007, where the entire world grew at a rapid pace, creating huge inflationary pressures. India will directly benefit due to lower cost of commodity imports, an improving trade balance and the most unique part of this crisis, which is that India will be among one of the only large economies where the government s fiscal situation is actually improving due to the crisis. We would advise investors to be patient and ride out this tough phase where we have underperformed broadly over the last nine months. It will be our constant endeavour to outperform going forward. We are very optimistic that with our fund management and research skill set, we will be able to live up to investor expectations going forward and will try to bounce back strongly. Market Update - Derivatives October, the month of festivals, turned out to be a nightmare for Indian stocks markets and their investors. The Sensex and the Nifty both lost around 25% from the September closing, after touching the lows of last 3 years, driven mainly by global news flows, liquidity crunch and lack of any buying. The Sensex closed the month below the psychological level of 10,000, its intra-month low being Due to this bear hammering, the cost-of-carry turned negative and a lot of stock futures were trading at a discount to their spot prices. The fund unwinded many of its existing arbitrage positions in profit. The rollovers from October to November series were slightly on the lower side, but at good rates. The festival of lights has brought a change in the trend of the markets and the indices have risen sharply from the lows of October. This volatility has turned to be a boon for the arbitrageurs, as the cost-of-carry also has become very volatile, providing good entry and exit opportunities for arbitrage. 1

4 From The Debt Desk Indicators Current Month Last Month M-o-M Variation Forex Reserves* USD Bln (43) Credit Off take* - Rs Crs 2,607,404 2,491, Credit Deposit * WPI Inflation*(%) 10.68% 12.14% (0.0146) 10-Year Yield - India* (%) 7.45% 8.63% (0.0118) 10-year Yield - USA* (%) 3.96% 3.67% (0.0029) Exchange Rate* USD/INR Brent Crude per/bbl* (30.60) Reverse Repo-Daily Avg Rs Crs 8, , Repo Average-Daily Avg Rs Crs 48, , (9,000.00) * Data Reported as on month-end, Source RBI, WSS & Bloomberg. Government bond yields fell sharply during the month on back of surprise monetary easing by RBI, deferment of scheduled government bond auctions during the month, easing global rates, continued slide in global commodity prices and abating domestic inflation. In two inter-meetings during the month RBI reduced the CRR by cumulative 250 basis points to 6.50% and the repo rate by 100 basis points to 8.00% The aggressive monetary easing was in view of the tight domestic liquidity situation and global financial crises. The 10 year benchmark government bond yield fell by around 120 basis points during the month to end at 7.45% as compared to 8.63% in the previous months. RBI kept all key rates unchanged in the quarterly review of the monetary policy, in view of the steps taken in the inter-meetings and higher inflation. Market also took comfort as Government of India deferred the scheduled auctions twice in view of the tight liquidity situation. OIS rates trended lower across the curve as the 5-year OIS rate touched a low of 6.50% in anticipation of easy liquidity conditions and monetary easing by RBI The 5 year INR swap rate ended at 6.57% Activity in the long end corporate bond market remained lackluster with the yields remaining firm on back of tight liquidity situation and constant supply pressures. Factor: Inflation Short Term: Negative Medium Term: Positive Domestic inflation continued to remain in double digit but eased considerably to 10.68% as compared to 12.34% in last month. Fuel index eased from 375 to 369 during the month. Primary article index eased to 248 as compared to 250 and manufactured index eased from to during the month. WPI after touching a high of 12.63% is showing signs of moderation on back of lower commodity prices. Going forward It is expected that headline inflation will continue to moderate from the present levels on easing global commodity prices and base effect. Headline inflation for the month of November 08 is expected to be in the range of 10%-10.50% assuming no changes in domestic fuel prices. Factor: Liquidity Short Term: Positive Medium Term: Neutral to Negative Domestic liquidity situation continued to remain tight during the month on aggressive RBI intervention in foreign exchange market and absence of major government spending. Aggressive intervention by RBI in the foreign exchange market to control the depreciating rupee put strain on domestic liquidity. Tight liquidity conditions were evident as RBI received average bids worth Rs crores during the month in the daily repo auction, Inter bank call rates & CBLO rates continued to remain firm on tight liquidity situation. Interbank call money rates remained above the repo rate in most part of the month. However, there were intermittent bouts of liquidity easing after RBI s monetary measures to infuse liquidity in the system.yields on money market assets yields rose by around basis points on tight liquidity conditions Going forward in the month of November 2008 domestic liquidity situation likely to improve from the present levels on back of series of measures taken by RBI. However liquidity will continue to remain in a deficit mode till the time RBI continues to intervene in the foreign exchange market. Factor: Global interest rates Short Term: Positive Medium Term: Positive Global interest rate scenario continued to remain positive as central banks across the global took concerted monetary actions in view of the global financial crises. US along with several other central banks eased the target repo rates ranging from basis points during the month in a bid to avert the global financial crises. The US Federal Reserve took several liquidity easing measures including a cumulative 100 basis points cut in the target federal funds rate. The US federal fund target rate now stands at 1.00%.Bank of England eased repo rate by 50 basis points to 4.5%, ECB eased rates by 50 basis points, Bank of Canada eased rates by 50 basis points to 2.50%, Reserve Bank of Australia eased rates by 100 basis points to 6.00% and Central Bank of Korea eased rates by 100 basis points to 4.25%. Apart from developed economies several developing economies including the Central bank of China also eased rates during the month. The US dollar continued to rally and ended at 1.27 to the euro on back of sustained efforts by the US authorities to avert the financial crises. The global interest rate easing cycle expected to continue as central banks will continue to take monetary steps in view of the recession fears. Factor: Forex Short Term: Negative Medium Term: Negative India s Forex reserves declined sharply by $43 billion and stood at a $ 258 billion as on 24th October. The sharp decline in forex reserve was on account of capital outflows and continued RBI intervention in the forex market. INR ended lower by 5.00% vis-a vis the USD on back of strong dollar demand, strength in the US dollar, slowdown concerns and weakness in the local stock market. INR ended at vis a vis the USD as against the previous close of Going forward, it is expected that the INR will remain volatile and trade weak on account of capital outflows, uncertainty in the global markets and slowdown concerns, however RBI will continue to aggressively intervene at lower levels. OUTLOOK Government bond prices expected to remain in a range for the month for November 2008, on profit taking after the sharp rally. However, sentiments will continue to remain buoyant on back of monetary easing and receding inflation. Headline inflation is showing signs of moderation on back of a sharp fall in global commodity prices, which will provide comfort to the market. With a sharp correction in global crude oil prices, the Government of India may reduce the domestic fuel prices which will have a significant impact on domestic inflation. It is expected that the 10 year benchmark yield will trade in the range of 7.40%-7.90% in the month of November. Domestic liquidity situation likely to improve from the present levels on back of series of measures taken by RBI. However liquidity will continue to remain in a deficit mode till the time RBI continues to intervene in the foreign exchange market. Money market asset yields are expected to ease on back of improved liquidity situation. It is expected that 5 year AAA corporate bonds-gsec spreads will range between basis points. 2

5 JM Contra (An Open-Ended Growth Scheme) : The investment objective of the Scheme is to provide capital appreciation by following contrarian style of investing that refers to buying into fundamentally sound stocks that have been overlooked by the market (for reasons of short term trend) and waiting for the market to give these stocks their real value in course of time. : Sandip Sabharwal (Managing this fund since September, 2007 & total 11 yrs of experience in fund management & equity research). Inception : 7th September, 2007 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.18% % to NAV Auto Ancillaries 2, Apollo Tyre 2, Construction 4, Hindustan Construction Co IVRCL Infrastructure & Project IVRCL Infrastructure & Projects Punj Lloyd Punj Lloyd - 1, Consumer Durables 2, Voltas 1, Voltas Consumer Non Durable 3, Balrampur Chini Mills 1, Balrampur Chini Mills Gitanjali Gems Gitanjali Gems Ferrous Metals PSL Finance 1, Reliance Capital Reliance Capital - 1, Industrial Capital Goods 1, Bharati Shipyard Praj Industries 1, Praj Industries Industrial Products Sintex Industries Software 2, i Infotech 1, Mphasis BFL 1, Satyam Computers Services Textile Products 3, Bombay Rayon Fashions 2, Bombay Rayon Fashions Transportation 2, Jet Airways India 1, Jet Airways India Spicejet 1, Total Equity 24, EQUITY OPTION (585.83) (2.06) NIFTY-OPNOV2008PE (16.07) (0.06) NIFTY-OPNOV2008PE (37.84) (0.13) NIFTY-OPNOV2008PE (244.67) (0.86) NIFTY-OPNOV2008PE (287.25) (1.01) Total Debt (585.83) (2.06) CBLO 1, Others* 2, Total Assets 28, Plan 6 Months 1 Year Incep.* JM Contra - (65.20) (65.80) (55.39) BSE 500 Index** (48.15) (54.05) (37.09) * Inception date = Allotment date i.e ** Benchmark Index: BSE 500 Index Note: Absolute Returns for period less than 1 year. Past performance may or may not be sustained in future. JM Equity (An Open-Ended Growth Scheme) : To provide optimum capital growth and appreciation. : Sanjay Chhabaria (Managing this fund since December, 2007 & total 8 yrs of experience in fund management & equity research) Inception : 1st April, 1995 NAV DETAILS : (Rs.) : (Rs.) : Turnover Expense : 2.50% : Rs Crores : % to NAV Auto Ancillaries Apollo Tyre Banks ICICI Bank Beverages McDowell Holdings Construction IVRCL Infrastructure & Projects Consumer Durables Voltas Consumer Non Durable Balrampur Chini Mills Hindustan Unilever Finance Reliance Capital Industrial Capital Goods Bharat Heavy Electricals Elecon Engineering Co Larsen & Toubro Pesticides United Phosphorous Petroleum Products Reliance Industries Power Reliance Power Tata Power Software Infosys Technologies Mphasis BFL Satyam Computers Services Telecom-Services Bharti Airtel Textile Products Bombay Rayon Fashions Transportation Jet Airways India Total Equity 3, CBLO Others* Total Assets 4, JM Basic (An Open-Ended Sector Scheme) Details as on October 31, 2008 Plan 6 Mths 1 Year 3 Years 5 Years Incep.* JM Equity - (50.70) (59.31) (2.11) BSE Sensex** (43.38) (50.56) * Inception date = Allotment date i.e ** Benchmark Index: BSE Sensex Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. RISK REPORT 3 Years (Monthly) RF=6% Scheme Name Beta Sharpe Std. Dev. JM Equity Source: Mutual s India Explorer. : The primary objective of the Scheme will be to provide capital appreciation to its Unitholders through judicious deployment of the corpus of the Scheme in sectors categorized under basic industry in the normal parlance and in context of the Indian economy, including but not limited to, energy, petrochemicals, oil & gas, power generation & distribution and electrical equipment suppliers, metals and building material. The fund would continue to remain open-ended with a sector focus. : Asit Bhandarkar (Managing this fund since December, 2006 & total 5 yrs of experience in fund management & equity research). Inception : 2nd June, 1997 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.07% % to NAV Auto Ancillaries 1, Apollo Tyre 1, Building Products 1, Greenply Industries 1, Construction 6, Hindustan Construction Co. 1, IVRCL Infrastructure & Project IVRCL Infrastructure & Projects 1, Punj Lloyd 3, Punj Lloyd Construction Materials 1, Action Construction Equipment 1, Consumer Durables 1, Voltas 1, Consumer Non Durable 2, Balrampur Chini Mills 2, Gitanjali Gems Ferrous Metals 3, Maharashtra Seamless 1, Maharashtra Seamless PSL 2, Finance (1,123.94) (2.83) Nifty - (1,123.94) (2.83) Industrial Capital Goods 8, Bharat Heavy Electricals - 4, # Bharati Shipyard Emco 1, KEC International Praj Industries 1, Industrial Products 4, Everest Kanto Cylinder Everest Kanto Cylinder Sintex Industries 2, Sintex Industries Petroleum Products Reliance Industries

6 Details as on October 31, 2008 Power 1, Reliance Infrastructure 1, Telephone Cables 1, Finolex Cables 1, Textile Products 3, Bombay Rayon Fashions 3, Transportation 1, Sanghvi Movers 1, Total Equity 38, EQUITY OPTION NIFTY-OPNOV2008PE NIFTY-OPNOV2008PE Total Debt CBLO Others* 1, Total Assets 39, # increase over 10% on account of market movements / change in net assets of the scheme Plan 6 Mths 1 Year 3 Years 5 Years Incep.* JM Basic - (66.04) (70.81) (3.79) BSE BII** (51.04) (57.70) NA NA * Inception date = Allotment date i.e ** Benchmark Index: BSE Basic Industries Index ( ) $ ( $ ) Disclaimer: Refer page no. 14 Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. RISK REPORT JM Emerging Leaders (An Open-Ended Equity Oriented Growth Scheme) 4 3 Years (Monthly) RF=6% Scheme Name Beta Sharpe Std. Dev. JM Basic (0.01) 2.05 Source: Mutual s India Explorer. Since Mutual s India Explorer does not have cutomised index values of JM Basic, BSE Sensex is considered for calculation of Beta. : The primary investment objective of the scheme is to seek long term capital appreciation from investment in a portfolio of stocks across all market capitalization range. The portfolio may include those companies operating in emerging sectors of the economy or companies which exhibit potential to become leaders of tomorrow. However, there can be no assurances that the investment objective will be achieved. : Sandip Sabharwal (Managing this fund since December, 2006 & total 11 yrs of experience in fund management & equity research). Inception : 27th July, 2005 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.27% % to NAV Construction Materials 1, Action Construction Equipment Simplex Projects Consumer Non Durable 2, Gitanjali Gems Gitanjali Gems Hanung Toys & Textiles 1, Renaissance Jewellery Industrial Capital Goods 1, Bharati Shipyard Elecon Engineering Co Emco Praj Industries Industrial Products 1, Sintex Industries 1, Sintex Industries Software 5, i Infotech 1, Bartronics India 1, Mphasis BFL 1, # Mphasis BFL Telecom-Equipment & Accesories 1, XL Telecom 1, Telecom-Services Tulip IT Services Textile Products 1, Bombay Rayon Fashions 1, Bombay Rayon Fashions Transportation Jet Airways India Jet Airways India Spicejet Total Equity 16, CBLO Others* Total Assets 16, # increase over 10% on account of market movements / change in net assets of the scheme Plan 6 Mths 1 Year 3 Years Incep.* JM ELF - (70.50) (73.55) (22.32) (23.11) BSE 200** (46.90) (52.95) * Inception date = Allotment date i.e ** Benchmark Index: BSE 200 Index Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. RISK REPORT 3 Years (Monthly) RF=6% Scheme Name Beta Sharpe Std. Dev. JM ELF (0.05) 1.94 Source: Mutual s India Explorer. JM Small & Mid-Cap (An Open-Ended Equity Oriented Scheme) : The investment objective of the Scheme is to provide capital appreciation by primarily investing in small cap and mid-cap stocks. Small cap stock is defined as any company which has a market capitalization less than 10% of the market capitalization of the last stock in S&P CNX NIFTY. Mid-cap stock is defined as any company which has a market capitalization less than the market capitalization of the last stock in S&P CNX NIFTY but greater than 10% of the market capitalization of the last stock in S&P CNX NIFTY. : Sanjay Chhabaria (Managing this fund since September, 2008 & total 8 years of experience in fund management & equity research). Inception : 30th April, 2007 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.40% % to NAV Auto Ancillaries Apollo Tyre Construction Nagarjuna Construction Co Construction Materials Simplex Projects Consumer Non Durable 1, Gitanjali Gems Hanung Toys & Textiles # Renaissance Jewellery Detachable warrant Ferrous Metals PSL Hotels Country Club India Industrial Capital Goods Bharati Shipyard Elecon Engineering Co Emco Titagrah Wagons Industrial Products Sintex Industries Non Ferrous Metals Sujan Towers Power - Cables Diamond Power Infrastructure Software i Infotech Telecom-Services 1, Tulip IT Services 1, # Textile Products Bombay Rayon Fashions # Transportation Sanghvi Movers Spicejet Total Equity 6, CBLO Others* (266.28) (4.12) Total Assets 6, # increase over 10% on account of market movements / change in net assets of the scheme Plan 6 Mths 1 Year Incep.* Regular Plan - (68.23) (71.23) (45.36) CNX MCI ** (49.94) (52.84) (23.46) * Inception date = Allotment date i.e ** Benchmark Index: CNX Mid Cap Index (~) Disclaimer: Refer page no. 14 Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future.

7 JM HI FI (JM Housing, Infrastructure & Financial Services ) (An Open-Ended Equity Oriented Growth Scheme) : To generate medium to long term capital growth from a portfolio that is substantially constituted of equity & equity related securities of companies which could benefit from the structural changes brought about by the continuing liberalization in economic policies and investments by the Government in the housing, infrastructure and financial services sectors. : Sandeep Neema (Managing this fund since April, 2006 & total 13 years of experience in fund management & equity research). Inception : 7th April, 2006 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% % to NAV Banks AXIS Bank Bank of Baroda HDFC Bank ICICI Bank Punjab National Bank Union Bank Construction Hindustan Construction Co Punj Lloyd Construction Materials Simplex Projects Consumer Durables Voltas Ferrous Metals Jai Corp Finance JM Financial Industrial Capital Goods Bharat Bijlee Bharat Heavy Electricals Larsen & Toubro Praj Industries Real Estate Developers Housing Development & Inf Indiabulls Real Estate Steel Welspun Gujarat Stahl Rohren Total Equity 1, EQUITY OPTION (3.22) (0.22) NIFTY-OPNOV2008PE (3.22) (0.22) Total Debt (3.22) (0.22) CBLO Others* Total Assets 1, Plan 6 Mths 1 Year Incep.* JM HI FI - (55.69) (66.29) (21.98) S & P ** (44.14) (51.00) (6.77) * Inception date = Allotment date i.e ** Benchmark Index: S&P CNX Nifty Index Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. JM Auto Sector (An Open-Ended Sector Scheme) % to NAV Auto Bajaj Auto Eicher Motors Escorts India Hero Honda Motors Mahindra & Mahindra Maruti Udyog Tata Motors Auto Ancillaries Amara Raja Batteries Apollo Tyre Exide Industries Industrial Products Cummins India Ramkrishna Forgings Total Equity CBLO Others* (2.22) (0.50) Total Assets : To provide capital appreciation to its unitholders through judicious deployment of the corpus of the scheme in the zauto & auto ancillary sector. : Asit Bhandarkar (Managing this fund since December, 2006 & total 5 yrs of experience in fund management & equity research). Inception : 29th June, 2004 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% Plan 6 Mths 1 Year 3 Years Incep.* JM Auto Sector - Growth (42.80) (50.96) (9.93) 3.22 Plan BSE Auto** (43.17) (51.14) (7.69) 4.73 * Inception date = Allotment date i.e ** Benchmark Index: BSE Auto Sector Index Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. RISK REPORT 3 Years (Monthly) RF=6% Scheme Name Beta Sharpe Std. Dev. JM Auto Sector (0.02) 1.75 Source: Mutual s India Explorer. Details as on October 31, 2008 JM Multi Strategy (An Open-Ended Equity Oriented Scheme) : The investment objective of the Scheme is to provide capital appreciation by investing in equity and equity related securities using a combination of strategies : Sandip Sabharwal (Managing this fund since September, 2008 & total 11 yrs of experience in fund management & equity research). Inception : 23rd September, 2008 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% % to NAV Agriculture Finance Jain Irrigation Systems Banks HDFC Bank ICICI Bank Finance 1, Nifty - 1, Industrial Capital Goods Bharat Heavy Electricals Bharati Shipyard KEC International Industrial Products Sintex Industries Petroleum Products Reliance Industries Reliance Industries Power Reliance Infrastructure Software Satyam Computers Services Telecom-Services Reliance Communications Transportation Jet Airways India Total Equity 4, EQUITY OPTION (213.73) (5.01) NIFTY-OPNOV2008CE (74.22) (1.74) NIFTY-OPNOV2008CE (20.38) (0.48) NIFTY-OPNOV2008CE (13.79) (0.32) NIFTY-OPNOV2008PE (105.34) (2.47) Total Debt (213.73) (5.01) CBLO Others* (315.42) (7.38) Total Assets 4, Plan 6 Mths 1 Year 3 Years Incep.* JM Multi Strategy - NA NA NA (32.10) BSE 500 Index** NA NA NA (31.22) * Inception date = Allotment date i.e ** Benchmark Index: BSE 500 Index Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. 5

8 JM Healthcare Sector (An Open-Ended Sector Scheme) Plan 6 Mths 1 Year 3 Years Incep.* JM Healthcare Sector (34.69) (28.28) (1.13) BSE Healthcare** (35.00) (29.21) * Inception date = Allotment date i.e ** Benchmark Index: BSE Healthcare Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. RISK REPORT 3 Years (Monthly) RF=6% Scheme Name Beta Sharpe Std. Dev. JM Healthcare Sector (0.01) 1.52 Source: Mutual s India Explorer. 6 % to NAV Pharmaceuticals Aurobindo Pharma Cadila Healthcare Cipla Dishman Pharmaceuticals & Chemicals Glenmark Pharmaceuticals Indoco Remedies Ipca Laboratories Jubilant Organosys Lupin Opto Circuits (India) Panacea Biotech Sun Pharmaceuticals Industries Total Equity CBLO Others* (3.35) (0.67) Total Assets : To provide capital appreciation to its unitholders through judicious deployment of the corpus of the scheme in the healthcare sector. : Asit Bhandarkar (Managing this fund since December, 2006 & total 5 yrs of experience in fund management & equity research). Inception : 29th June, 2004 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% JM Telecom Sector (An Open-Ended Equity Oriented Sector Scheme) % to NAV Software Geodesic Telecom-Equipment & Accesories Sterlite Technologies Telecom-Services Bharti Airtel Reliance Communications Tanla Solutions Tulip IT Services Telephone Cables Finolex Cables Total Equity CBLO Others* Total Assets : The primary investment objective of the scheme is to invest predominantly in equity & equity related instruments in the Telecom Sectors in India. Accordingly the NAV of the Scheme is linked to the equity performance of such companies. However, there can be no assurance that the investment objectives of the scheme will be realised. The scheme does not guarantee / indicate any returns. : Asit Bhandarkar (Managing this fund since December, 2006 & total 5 yrs of experience in fund management & equity research). Inception : 7th December, 2006 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% Plan 6 Mths 1 Year Incep.* JM Telecom Sector - Growth (46.51) (56.35) (20.94) Plan BSE Telecom** (42.47) (52.57) (14.03) * Inception date = Allotment date i.e ** Benchmark Index: BSE Telecom Index ( ) ^ (^) Disclaimer: Refer page no. 14 Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. Details as on October 31, 2008 JM Financial Services Sector (An Open-Ended Equity Oriented Sector Scheme) % to NAV Banks 2, AXIS Bank Bank of Baroda Bank of India HDFC Bank ICICI Bank Kotak Mahindra Bank State Bank of India Union Bank Yes Bank Finance 1, Cholamandalam DBS Finance IL&FS Investment Managers JM Financial Mahindra & Mahindra Financial Services Reliance Capital Shriram Transport Finance Co Total Equity 3, CBLO Others* (30.93) (0.82) Total Assets 3, : The primary investment objective of the scheme is to invest predominantly in equity & equity related instruments in the Banking / Financial institution / NBFC and housing finance sectors in India. Accordingly the NAV of the Scheme is linked to the equity performance of such companies. However, there can be no assurance that the investment objectives of the scheme will be realised. The scheme does not guarantee / indicate any returns. : Sandeep Neema (Managing this fund since December, 2006 & total 13 years of experience in fund management & equity research). Inception : 7th December, 2006 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% Plan 6 Mths 1 Year Incep.* JM Financial Services Sector - (48.36) (52.59) (13.83) BSE Finance** (45.55) (53.52) (14.83) * Inception date = Allotment date i.e ** Benchmark Index: BSE Finance Index ( )! (!) Disclaimer: Refer page no. 14 Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future.

9 JM Tax Gain (An open ended Equity Linked Savings Scheme) : The investment objective is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities and to enable investors a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. However, there can be no assurance that the investment objective of the scheme will be achieved. : Sandip Sabharwal (Managing this fund since March, 2008 & total 11 yrs of experience in fund management & equity research). Inception : 31st March, 2008 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% % to NAV Auto Bajaj Auto Banks ICICI Bank Kotak Mahindra Bank Construction Hindustan Construction Co Punj Lloyd Consumer Durables Voltas Consumer Non Durable Balrampur Chini Mills Gitanjali Gems Hotels Country Club India Industrial Capital Goods Bharat Heavy Electricals Bharati Shipyard Praj Industries Industrial Products Cummins India Sintex Industries Petroleum Products Reliance Industries # Power - Cables Diamond Power Infrastructure Real Estate Developers Housing Development & Inf Orbit Corporation Software Mphasis BFL # Textile Products Bombay Rayon Fashions Total Equity 2, CBLO Others* (1.94) (0.07) Total Assets 3, # increase over 10% on account of market movements / change in net assets of the scheme : To provide steady current income as well as long term growth of capital. : Sanjay Chhabaria (Managing this fund since February, 2008 & total 8 years of experience in fund management & equity research). Inception : 1st April, 1995 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 2.50% Plan 6 Mths 1 Year 3 Years 5 Years Incep.* Growth (56.54) NA NA NA (53.86) BSE 500 Index (48.15) NA NA NA (42.02) * Inception date = Allotment date i.e ** Benchmark Index: BSE 500 Index Note: Compounded Annualised Growth Returns (CAGR) for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. JM Balanced (An open ended Balanced Scheme) Auto Bajaj Auto Auto Ancillaries Apollo Tyre Banks ICICI Bank Construction IVRCL Infrastructure & Projects Consumer Non Durable Balrampur Chini Mills Industrial Capital Goods B.L.Kashyap & Sons Bharat Heavy Electricals Non Ferrous Metals Sujan Towers Petroleum Products Reliance Industries Software i Infotech Infosys Technologies Telecom-Equipment & Accesories MIC Electronics Telecom-Services % to NAV Rating Details as on October 31, 2008 Bharti Airtel Total Equity Certificate of Deposits Punjab National Bank A1+ Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ Total Debt CBLO Others* Total Assets 1, Plan 6 Mths 1 Year 3 Years 5 Years Incep.* JM Balanced - Growth Plan (47.60) (56.41) (1.53) CBFI** (30.70) (35.22) NA * Inception date = Allotment date i.e ** Benchmark Index: Crisil Balanced Index Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. JM MIP (An Open-Ended Monthly Income Scheme with no assured return. Monthly Income is not assured and is subject to the availability of the distributable surplus.) : To generate regular income, primarily through investments in fixed income securities so as to make monthly, quarterly and annual dividend distribution, declare bonus in the growth option. The would also aim to achieve capital appreciation through investing a portion of its assets in equity and equity related securities. : Shalini Tibrewala (Managing this fund since Sept., 2003 & total 10 years of experience in fund management & financial services sector). Inception : 18th September, 2003 NAV DETAILS : (Rs.) : s: Monthly Div. option (Rs.): Quarterly Div. option (Rs.): Annual Div. option (Rs.): : Rs Crores Expense : 2.25% 7

10 Details as on October 31, 2008 Plan 6 Mths 1 Year 3 Years 5 Years Incep.* (6.83) (6.25) CMIP In** (7.70) (6.88) * Inception date = Allotment date i.e ** Benchmark Index: Crisil MIP Blended Index Note: Absolute Returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Current Yield 6.96% Duration Average Maturity 8 Auto Maruti Udyog Auto Ancillaries Apollo Tyre Banks HDFC Bank Beverages McDowell Holdings Construction Materials % to NAV Rating Action Construction Equipment Telecom-Equipment & Accesories XL Telecom Telecom-Services Bharti Airtel Total Equity Certificate of Deposits Vijaya Bank PR1+ Floating Rate Bonds Union Bank of India AA+ UTI Bank LAA+ Total Debt CBLO Others* Total Assets years years JM Arbitrage Advantage (An Open-Ended Equity Oriented Interval Scheme) : The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. : Biren Mehta (Managing this fund since July, 2006 & total 17 years of experience in fund management & capital markets) Inception : 18th July, 2006 NAV DETAILS : (Rs.) : (Rs.) : : Rs Crores Turnover : Expense : 1.40% Market Value (Rs. In Lacs) % to NAV Auto Escorts India Escorts India - (36.29) TVS Motor TVS Motor - (148.95) Banking Services Syndicate Bank Syndicate Bank - (615.26) Banks 2, Bank of Baroda Bank of Baroda - (324.78) Canara Bank Canara Bank - (144.93) HDFC Bank HDFC Bank - (143.89) Karnataka Bank Karnataka Bank - (157.03) Punjab National Bank 1, Punjab National Bank - (1,267.95) Cement Century Textile & Inds Century Textile & Inds. - (155.47) India Cements India Cements - (403.80) Ultratech Cement Ultratech Cement - (287.83) Construction 1, Hindustan Construction Co Hindustan Construction Co. - (451.32) IVRCL Infrastructure & Projects IVRCL Infrastructure & Projects - (258.30) Jai Prakash Associates Jai Prakash Associates - (85.73) Nagarjuna Construction Co Nagarjuna Construction Co. - (3.15) Parsvnath Developers Parsvnath Developers - (1.70) Punj Lloyd Punj Lloyd - (875.12) Consumer Durables 1, Voltas 1, Voltas - (1,498.30) Rating Consumer Non Durable Bajaj Hindustan Bajaj Hindustan - (52.79) Balrampur Chini Mills Balrampur Chini Mills - (641.16) Shree Renuka Sugars Shree Renuka Sugars - (230.23) Ferrous Metals Ispat Industries Ispat Industries - (62.19) Jindal Steel & Power Jindal Steel & Power - (144.43) Maharashtra Seamless Maharashtra Seamless - (24.75) Fertilizers Nagarjuna Fertilizers Nagarjuna Fertilizers - (261.72) Oswal Chemicals & Fertilizers Oswal Chemicals & Fertilizers - (40.30) Finance IFCI IFCI - (473.22) Industrial Capital Goods Lakshmi Machine Works Lakshmi Machine Works - (109.21) Praj Industries Praj Industries - (684.20) Suzlon Energy Suzlon Energy - (27.30) Industrial Products 2, Bharat Forge Bharat Forge - (118.05) Everest Kanto Cylinder Everest Kanto Cylinder - (535.35) Sintex Industries 1, Sintex Industries - (1,382.37) Media IBN18 Broadcast IBN18 Broadcast - (481.80) Wire & Wireless (India) Wire & Wireless (India) - (10.09) Media & Entertainment Zee Telefilms Zee Telefilms - (60.31) Metals & Mining Neyveli Lignite Corporation Neyveli Lignite Corporation - (66.60) Non Ferrous Metals 1, Hindalco Industries 1, Hindalco Industries - (1,213.99) Oil Oil & Natural Gas Corp Oil & Natural Gas Corp. - (684.53) Petroleum Products 1, Chennai Petroleum Chennai Petroleum - (263.64) Hindustan Petroleum Hindustan Petroleum - (124.18) Reliance Industries 1, Reliance Industries - (1,231.18) Reliance Petroleum Reliance Petroleum - (320.04) Pharmaceuticals Ranbaxy Laboratories Ranbaxy Laboratories - (312.52) Wockhardt Pharma Wockhardt Pharma - (25.31) Power Lanco Infratech Lanco Infratech - (481.53) Real Estate Developers DLF DLF - (57.49) Peninsula Land Peninsula Land - (1.72) Retail 1, Pantaloon Retail (India) 1,

11 Pantaloon Retail (India) - (1,703.21) Software Mphasis BFL Mphasis BFL - (848.72) Steel Welspun Gujarat Stahl Rohren Welspun Gujarat Stahl Rohren - (492.05) Telecom-Services 1, GTL GTL - (920.19) Reliance Communications Reliance Communications - (110.11) Tata Teleservices (Maharashtra) Tata Teleservices (Maharashtra) - (55.63) Textile Products Alok Industries Alok Industries - (46.99) Arvind Arvind - (65.18) Textiles - Synthetic SRF SRF - (118.66) Transportation Jet Airways India Jet Airways India - (140.72) Total Equity 21, Fixed Deposit Scheme 12, HDFC Bank 1, HDFC Bank HDFC Bank Jammu & Kashmir Bank 4, Jammu & Kashmir Bank 2, Punjab National Bank 3, Punjab National Bank Punjab National Bank Non Convertible Debenture Reliance Industries AAA Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ UTI Bank LAA+ Privately Placed Debenture 2, Shriram Transport Fin. 2, AA(ind) Total Debt 15, CBLO & Others* (12.07) 0.01 Total Assets 36, Plan 6 Mths 1 Year Incep.* CLFI** * Inception date = Allotment date i.e ** Benchmark Index: CRI SIL Liquid Index Note: Absolute Returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. JM Equity & Derivative (An Income Scheme - Interval Scheme) : The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. However, there can be no assurance that the investment objective of the scheme will be realized. The scheme does not guarantee/ indicate any returns. Inception : 4th March, 2005 : Biren Mehta (Managing this fund since March, 2005 & total 17 years of experience in fund management & capital markets) NAV DETAILS : (Rs): (Rs): Bonus option (Rs) : Expense : 0.93% : Rs Crores Market Value (Rs. In Lacs) % to NAV Market Value (Rs. In Lacs) Rating Consumer Non Durable Balrampur Chini Mills Balrampur Chini Mills - (35.05) Media IBN18 Broadcast IBN18 Broadcast - (175.20) Pharmaceuticals Ranbaxy Laboratories Ranbaxy Laboratories - (63.86) Power Lanco Infratech Lanco Infratech - (29.58) Telecom-Services GTL GTL - (194.26) Reliance Communications Reliance Communications - (45.43) Total Equity Certificate of Deposits Punjab National Bank A1+ Vijaya Bank PR1+ Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ UTI Bank LAA+ Privately Placed Debenture Citi Fin.Con.Finance AAA Total Debt CBLO & Others* Total Assets 2, Details as on October 31, 2008 JM Equity & Derivative - 6 Mths 1 Year 3 Years Incep.* CLFI** * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Current Yield 9.17% Duration years Average Maturity years JM High Liquidity (An Open - Ended Liquid Scheme) CRISIL AAAf RATED ## ## Please refer to the back cover page. : To provide income by way of dividend (dividend plans) and capital gains (growth plan) through investing in debt and money market instruments. : Shalini Tibrewala (Managing this fund since December, 1997 & total 10 years of experience in fund management & financial services sector). Inception : Regular Plan: 31st December, 1997 Regular Plan - DDO: 2nd July, 2001 Regular Plan - Bonus: 9th Sept., 2002 Regular Plan - Quarterly Div.: 23rd December, Bonus: 17th August, 2002 Institutional Plan: 4th April, 2003 Institutional Plan - DDO: 28th July, 2003 Super Institutional Plan:19th May, Premium Plan - DDO: 10th February, 2006 NAV DETAILS : Regular Plan (Rs.): (Rs.): Daily (Rs.): Bonus option (Rs.): Qtly. Dividend option (Rs.): Institutional Plan Growth option (Rs.): Dividend option (Rs.): Daily Dividend option (Rs.): Super Institutional Plan Growth option (Rs.): Daily Dividend option (Rs.): Wkly. Dividend option (Rs.): Premium Plan - Daily Dividend option (Rs.) : : Rs Crores Expense : High Liquidity : 0.19% High Liquidity - Premium Plan Daily : 0.20% 9

12 % to NAV Rating Certificate of Deposits 61, Andhra Bank 10, A1+ Canara Bank 4, P1+ Canara Bank 5, P1+ Corporation Bank 2, P1+ ICICI Bank 2, A1+ ICICI Bank 4, A1+ IDBI Bank PR1+ Punjab National Bank 13, A1+ Punjab National Bank A1+ Punjab National Bank A1+ State Bank of Hyderabad 2, A1+ State Bank of Bikaner & Jaipur 2, P1+ State Bank of India 5, P1+ State Bank of India 1, P1+ UCO Bank 2, P1+ Vijaya Bank 1, PR1+ Non Convertible Debenture 1, Infrastructure Dev. Fin. Corp. 1, AAA (ind) Floating Rate Bond Indian Railway Fin. Corp AAA Securitised 4, Indian Corporate Loan Sec. TrustSr.15-A2 26/12 BPCL 4, P1+(so) Indian Corporate Loan Sec. TrustSr.15-A3 26/12 BPCL P1+(so) Treasury Bills Days T-Bill 16/01/ SOV Total Debt 68, CBLO Others* 2, Total Assets 71, JM High Liquidity -Premium Plan Certificate of Deposit ICICI Bank A1+ Commercial Paper Tata Motors P1+ Total Debt CBLO Others* (0.07) (0.06) Total Assets (Regular) (permium plan) 10 Plan 7 Days 15 Days 30 Days 3 Month 6 Month Regular Plan CLFI** Plan 1 Year 3 Years 5 Years Incep.* Regular Plan CLFI** NA * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: Simple Annualised returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics High Liquidity High Liquidity - Premium Plan Current Yield 8.83% Current Yield 8.63% Duration years Duration years Average Maturity years Average Maturity years JM Money Manager (An Open - Ended Debt Scheme) Super Plus Plan - CRISIL AAAf RATED ## ## Please refer to the back cover page. : To generate stable long term returns with low risk strategy and capital appreciation/ accretion through investments in debt instruments and related securities besides preservation of capital. : Shalini Tibrewala (Managing this fund since September, 2006 & total 10 years of experience in fund management & financial services sector). Inception : Regular Plan - Growth: 27th Sept, 2006 Regular Plan - DDO: 27th Sept, 2006 Regular Plan - WDO: 26th July, 2007 Regular Plan - FDO: 26th Sept, 2008 Super Plan - Growth: 27th Sept, 2006 Super Plan - DDO: 27th Sept, 2006 Super Plan - WDO: 12th October, 2007 Super Plan - FDO: 2nd April, 2008 Super Plus Plan - Growth: 27th Sept, 2006 Super Plus Plan - DDO: 27th Sept, 2006 Super Plus Plan - WDO: 16th July, 2007 Super Plus Plan - FDO: 12th July, 2007 NAV DETAILS : Regular Plan - Growth option : Daily Dividend option : Weekly Dividend option : Fortnightly Dividend option : Super Plan - Growth option : Daily Dividend option : Weekly Dividend option : Fortnightly Dividend option : Super Plus Plan - Growth option : Daily Dividend option : Weekly Dividend option : Fortnightly Dividend option : : Rs. 1, Crores Expense : Regular Plan : 0.34% Super Plan : 0.34% Super Plus Plan : 0.29% Details as on October 31, 2008 % to NAV Rating REGULAR PLAN Certificate of Deposits Canara Bank P1+ IDBI Bank PR1+ Oriental Bank of Commerce P1+ Punjab National Bank A1+ Commercial Paper Hindustan Const. Co PR1+ Total Debt CBLO Others* Total Assets SUPER PLAN Certificate of Deposits 4, Canara Bank 3, P1+ Punjab National Bank A1+ State Bank of Patiala P1+ Vijaya Bank PR1+ Commercial Paper 6, Birla Global Finance 2, A1+ HDFC 2, A1+ IDBI Home Finance 1, A1+ Tata Motors P1+ Non Convertible Debenture 2, Citicorp Finance India AAA CitiFinancial Con.Fin AAA HSBC AAA NABARD AAA Total Debt 14, CBLO Others* Total Assets 14, SUPER PLUS PLAN Certificate of Deposits 104, Allahabad Bank 2, P1+ Andhra Bank 9, A1+ Canara Bank 2, P1+ Canara Bank 2, P1+ Corporation Bank 2, P1+ ICICI Bank A1+ ICICI Bank 12, A1+ ICICI Bank A1+ ICICI Bank 4, A1+ ICICI Bank 4, A1+ ICICI Bank 2, A1+ IDBI Bank 4, PR1+ IDBI Bank PR1+ Punjab National Bank 4, A1+ Punjab National Bank 8, A1+ Punjab National Bank 4, A1+ State Bank of Patiala 4, A1+ State Bank of Travancore 4, P1+ State Bank of Hyderabad 2, A1+ State Bank of Bikaner & Jaipur 2, P1+ State Bank of India 9, P1+ State Bank of India 5, P1+ State Bank of Patiala P1+ UCO Bank 7, P1+ Vijaya Bank 1, PR1+ Commercial Paper 16, Adlabs 9, A1+ ICICI Home Finance 2, A1+ ICICI Home Finance A1+ IDBI Home Finance A1+ Investsmart Fin. Ser. 2, A1+ Tata Motors P1+ Non Convertible Debentures 2, Infrastructure Dev.Fin.Corp AAA (ind) Infrastructure Leasing&Fin.Ser AAA (ind) Nabard 1, AAA Privately Placed Debenture 6, Citicorp Maruti Finance 1, AAA Ranbaxy Laboratories 4, P1+ Total Debt 129, CBLO Others* (10,734.38) (9.04) Total Assets 118,

13 (REGULAR plan) Plan 6 Mths 1 Year Incep.* Regular Plan - Growth option Super Plan - Growth option Super Plus Plan - Growth option CLFI ** * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: Simple Annualised returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Regular Plan Current Yield 8.95% Duration Average Maturity (super plan) (SUPER PLUS plan) years years Super Plan Current Yield 10.71% Duration years Average Maturity years Super Plus Plan Current Yield 9.35% Duration years Average Maturity years JM Liquid Plus (An Open-Ended Income Scheme) (Formerly known as JM Floater - Long Term Plan) Premium Plan - CRISIL AAAf RATED ## ## Please refer to the back cover page. : To provide regular income and capital appreciation through investment in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and also fixed rate instruments and money market instruments. Certificate of Deposits % to NAV Rating ICICI Bank A1+ Vijaya Bank PR1+ Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ UTI Bank LAA+ Total Debt 1, CBLO Others* Total Assets 1, Plan 6 Mths 1 Year 3 Years 5 Years Incep.* Regular Plan CLFI** * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: Absolute Returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Current Yield 9.06% Duration Average Maturity : Shalini Tibrewala (Managing this fund since March, 2006 & total 10 years of experience in fund management & financial services sector). Inception : Regular Plan: 25th June, 2003 Regular Plan - DDO: 22nd May, 2007 Regular Plan - WDO: 22nd May, 2007 Premium Plan: 13th October, 2004 Premium Plan - DDO: 15th May, 2007 Premium Plan - WDO: 18th May, 2007 NAV DETAILS : Regular Plan - Growth option (Rs.): Dividend option (Rs.): Daily Dividend option (Rs.): Wkly Dividend option (Rs.): Premium Plan - Growth option (Rs.): Dividend option (Rs.): Daily Dividend option (Rs.): Wkly Dividend option (Rs.): Expense : 0.53% : Rs Crores years years Details as on October 31, 2008 JM Floater (An Open-Ended Liquid Scheme) : To provide regular income and capital appreciation through investment in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and also fixed rate instruments and money market instruments. : Shalini Tibrewala (Managing this fund since September, 2006 & total 10 years of experience in fund management & financial services sector). Inception : 25th June, 2003 NAV DETAILS : Short Term Plan - Growth option (Rs.) : Dividend option (Rs.) : : Rs Crores Expense : 0.25% Floating Rate Bonds 1, % to NAV Rating Union Bank of India AA+ UTI Bank LAA+ Total Debt 1, CBLO Others* Total Assets 1, Plan 7 Days 15 Days 30 Days 3 Mths Short Term Plan CLFI** Plan 6 Mths 1 Year 3 Years 5 Years Incep.* Short Term Plan CLFI** * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: Simple Annualised Returns for period less than 1 year for JM Floater - Short Term Plan. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Short Term Plan Current Yield 9.52% Duration Years Avg. Maturity Years 11

14 JM Short Term (An Open-Ended Income Scheme) Value Research Rating ### JM SHORT TERM FUND - REGULAR IN DEBT - SHORT TERM category (24 Open-Ended Schemes) for 18 months period ending October : To generate regular returns and high level of liquidity with low risk strategy and capital appreciation / accretion through investment in debt instruments and related securities besides preservation of capital. : Mohit Verma (Managing this fund since August, 2007 & total 14 years of experience in financial services sector out of which 8 years of experience in the interest rate markets). Inception : Regular Plan : 18th June, 2002 Institutional Plan: 4th April, 2003 NAV DETAILS : Regular Plan - (Rs.) : (Rs.) : Institutional Plan - Growth option (Rs.) : Dividend option (Rs.) : : Rs Crores Expense : 0.82% % to NAV Rating Certificate of Deposits Vijaya Bank PR1+ Government Securities % GOI 03/11/ SOV Non Convertible Debenture ICICI Bank AAA Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ Total Debt CBLO Others* Total Assets 1, JM Income (An Open-Ended Income Scheme) CRISIL AAAf RATED ## ## Please refer to the back cover page. : To generate stable long term returns with low risk strategy and capital appreciation / accretion through investment in debt instruments and related securities besides preservation of capital. : Mohit Verma (Managing this fund since August, 2007 & total 14 years of experience in financial services sector out of which 8 years of experience in the interest rate markets). Inception : 1st April, 1995 Growth - Bonus Option: 18th March, 2002 NAV DETAILS : (Rs.) : (Rs.) : Bonus option (Rs.) : : Rs Crores Expense : 2.00% Certificate of Deposit % to NAV Rating Vijaya Bank PR1+ Non Convertible Debenture ICICI Bank AAA Floating Rate Bonds Indian Railway Fin. Corp AAA Union Bank of India AA+ UTI Bank LAA+ Securitised Credit Asset Trust Series L-Class A3 16/06/ F1+(ind)(so) Total Debt 1, CBLO Others* Total Assets 1, (REGULAR) (PF PLUS) Details as on October 31, 2008 JM G-Sec (An Open-Ended Dedicated Gilt Scheme) : To provide ultimate level of safety to its unitholders through investments in sovereign securities issued by the Central and State Government. : Mohit Verma (Managing this fund since August, 2007 & total 14 years of experience in financial services sector out of which 8 years of experience in the interest rate markets). Inception : Regular Plan : 29th September, 1999 Regular Plan - Growth - Bonus : 30th November, 2002 PF Plus Plan : 15th January, 2004 NAV DETAILS : Regular Plan - Growth option (Rs.) : Dividend option (Rs.) : Bonus option (Rs.) : PF Plus Plan - Growth option (Rs.) : Dividend option (Rs.) : : Rs Crores Expense : Regular Plan %, PF Plus Plan % % to NAV Rating REGULAR PLAN Government Securities % GOI 03/11/ SOV Total Debt CBLO Others* (47.99) (11.60) Total Assets PF PLUS PLAN Government Securities % GOI 03/11/ SOV Total Debt CBLO Others* (401.15) (72.11) Total Assets Plan 6 Mths 1 Year 3 Years 5 Years Incep.* Regular Plan Growth CLFI** * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Liquid Index Note: Absolute Returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Current Yield 8.59% Duration Years Avg. Maturity Years Plan 6 Mths 1 Year 3 Years 5 Years Incep.* (4.19) (2.89) CCBFI** NA * Inception date = Allotment date i.e ** Benchmark Index: CRISIL Composite Bond Index Note: CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Current Yield 7.09% Duration Years Avg. Maturity Years Plan 6 Mths 1 Year 3 Years 5 Years Incep.* Regular Plan I-SEC** NA Plan 6 Mths 1 Year 3 Years Incep.* PF Plus Plan (9.29) (7.86) (0.93) 0.48 I-SEC** * Inception date = Allotment date i.e. Regular : PF Plus Plan : , ** Benchmark Index: I-SEC Composite Index Note: Absolute Returns for period less than 1 year. CAGR for period 1 year or more, with reinvestment of dividends (if any). Past performance may or may not be sustained in future. statistics Regular Plan PF Plus Plan Current Yield 8.12% Current Yield 6.65% Duration Years Duration Years Avg. Maturity Years Avg. Maturity Years

15 Details as on October 31, 2008 DIVIDEND / BONUS HISTORY JM Equity Financial Year Record Date Dividend (%) FY August 28, % FY March 27, % FY March 29, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. JM Basic Financial Year Record Date Dividend (%) FY January 11, % September 21, % FY December 27, % FY March 18, % February 18, % January 18, % December 18, % November 18, % September 09, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/- JM Auto Sector Financial Year Record Date Dividend (%) FY February 14, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. JM Healthcare Sector Financial Year Record Date Dividend (%) FY January 12, % FY January 14, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. JM Balanced Financial Year Record Date Dividend (%) FY Febuary 16, % FY March 29, % FY November 18, % September 09, % FY December 19, % September 09, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. JM MIP JM MIP - Monthly Div. Option Financial Year Record Date Dividend (%) FY $ October 1, % September 1, % August 1, % JM MIP - Quarterly Div. Option Financial Year Record Date Dividend (%) FY $ September 14, June 14, March 14, JM MIP - Annual Div. Option Financial Year Record Date Dividend (%) FY $ - - FY $ September 22, % FY $ September 26, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. $ Includes Dividend Distribution Tax. JM Arbitrage Advantage Financial Year Record Date Dividend (%) FY September 16, % June 20, % FY March 19, % January 18, % September 21, % June 22, % FY March 23, % December 22, % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/- JM Equity & Derivative FY $ % FY $ % FY $ % FY $ % Bonus Option 80:1000 on 28/08/2006 After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. $ Includes Dividend Distribution Tax. JM High Liquidity FY $ Regular Plan % Regular Plan - Daily % Inst. Plan - Dividend option % Inst. Plan - Daily Dividend option % Super Inst. Plan - Weekly Div. option % Super Inst. Plan - Daily Div. option % Premium Plan - Daily Div. option % FY $ Regular Plan % Regular Plan - Daily 7.049% Inst. Plan - Dividend option 5.855% Inst. Plan - Daily Dividend option 6.868% Super Inst. Plan - Weekly Div. option 5.944% Super Inst. Plan - Daily Div. option 6.982% Premium Plan - Daily Div. option 6.918% FY $ Regular Plan % Regular Plan - Daily % Inst. Plan - Dividend option % Inst. Plan - Daily Dividend option % Super Inst. Plan - Weekly Div. option % Super Inst. Plan - Daily Div. option % Premium Plan - Daily Div. option % FY $ % Daily % Inst. Plan - Dividend option % Inst. Plan - Daily Dividend option % Super Inst. Plan - Weekly Div. option % Super Inst. Plan - Daily Div. option % Regular Plan - Growth - Bonus option :190 : 1000 on 23/10/2006 After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs.10/-. $ Includes Dividend Distribution Tax JM Money Manager FY $ Regular Plan - Daily Dividend option % Regular Plan - Weekly Dividend option % Regular Plan - Fortnightly Dividend option % Super Plan - Daily Dividend option % Super Plan - Weekly Dividend option % Super Plan - Fortnightly Dividend option % Super Plus Plan - Daily Dividend option % Super Plus Plan - Weekly Dividend option % Super Plus Plan - Fortnightly Dividend option % FY $ Regular Plan - Daily Dividend option % Regular Plan - Weekly Dividend option % Super Plan - Daily Dividend option % Super Plan - Weekly Dividend option % Super Plus Plan - Daily Dividend option % Super Plus Plan - Weekly Dividend option % Super Plus Plan - Fortnightly Dividend option % FY $ Regular Plan - Dividend option 3.713% Super Plan - Dividend option 3.765% Super Plus Plan - Dividend option 4.058% After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs.10/-. $ Includes Dividend Distribution Tax. JM Liquid Plus FY $ Regular Plan - Daily Dividend option % Regular Plan - Weekly Dividend option % Premium Plan - Daily Dividend option % Premium - Weekly Dividend option % Premium % FY $ Regular Plan - Daily Dividend option % Regular Plan - Weekly Dividend option % Premium Plan - Daily Dividend option % Premium - Weekly Dividend option % Premium % FY $ Long Term Plan - Premium Plan - Div. Option 5.579% FY $ Long Term Plan - Premium Plan - Div. Option % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. $ Includes Dividend Distribution Tax. JM Floater FY $ Short Term Plan % FY $ Short Term Plan % FY $ Short Term Plan % FY $ Short Term Plan % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs.10/-. $ Includes Dividend Distribution Tax 13

16 Details as on October 31, 2008 Related Disclaimers JM Short Term Dividend HistorY Financial Year Plan Dividend (%) FY $ % Inst. Plan % FY $ % Inst. Plan % FY $ 2.885% Inst. Plan % FY $ % Inst. Plan % After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. $ Includes Dividend Distribution Tax. JM Income Dividend / bonus History FY $ 2.500% FY $ 3.526% FY $ 1.64% - Bonus Option 12.5 : 1000 on 14/03/04 50 : 1000 on 24/12/02 25 : 1000 on 14/12/03 35 : 1000 on 24/09/02 25 : 1000 on 14/09/03 15 : 1000 on 28/06/02 22 : 1000 on 14/06/03 1 : 1 on 25/03/02 20 : 1000 on 14/04/03 After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs.10/-. $ Includes Dividend Distribution Tax. JM G-Sec Dividend / bonus History Regular Plan - Div. Option PF Plan - FY $ - - FY $ 2.8% - FY $ % - Regular Plan - Bonus Option 15 : 1000 on 14/06/06 10 : 1000 on 14/03/05 20 : 1000 on 14/03/06 5 : 1000 on 14/12/ : 1000 on 15/12/05 5 : 1000 on 14/06/ : 1000 on 15/09/ : 1000 on 14/03/04 10 : 1000 on 14/06/05 After payment of dividend, the NAV will fall to the extent of payout and distribution taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs.10/-. $ Includes Dividend Distribution Tax. ( $ ) Disclaimer: BSE Basic Industries Index ( ) : All rights in the BSE Basic Industries Index ( ) vest in BSE. BSE and BSE Basic Industries Index ( ) are trademarks of BSE and are used by JM Financial Asset Management Private Ltd. under license. BSE shall not be liable in any manner whatsoever (including in negligence) for any loss arising to any person whosoever out of use of or reliance on the BSE Basic Industries Index ( ) by any person. JM Basic is not sponsored, endorsed, sold or promoted by BSE. BSE makes no representation or warranty, express or implied to the investors in JM Basic or any member of the public in any manner whatsoever regarding the advisability of investing in securities generally or in JM Basic particularly or the ability of the index to track the sectors represented in the BSE Basic Industries Index ( ). The relationship of BSE to the JM Financial Asset Management Pvt. Ltd. is in respect of the licensing of use of BSE Basic Industries Index ( ) which is determined, composed and calculated by BSE without regard to the JM Financial Asset Management Pvt. Ltd. or JM Basic. BSE has no obligation to take the needs of the investors of JM Basic into consideration in determining, composing or calculating the BSE Basic Industries Index ( ) BSE is neither responsible for nor has participated in the determination of the time or price at which the units under JM Basic are to be issued or in the determination or calculation of the equation by which the units are to be redeemed for the underlying securities. BSE has no obligation or liability in connection with the administration, marketing or trading of JM Basic. BSE does not guarantee the accuracy and/or the completeness and/or continuity of BSE Basic Industries Index ( ) or any data included therein and they shall have no liability for any errors, omissions or interruptions therein or change or cessation thereof. BSE makes no warranty, express or implied, as to the results to be obtained by the JM Financial Asset Management Pvt. Ltd., investors of JM Basic, or any other persons or entities from the use of BSE Basic Industries Index ( ) or any data included therein. BSE makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to BSE Basic Industries Index ( ) or any data included therein. Without limiting any of the foregoing, in no event shall BSE have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. (~) Disclaimer: JM Small & Mid-cap ( Product ) is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ( IISL ). IISL makes no representation or warranty, express or implied to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the CNX Midcap Index to track general stock market performance in India. The relationship of IISL to JM Financial Asset Management Private Limited is in respect of the using of the trademark and trade name of CNX Midcap Index which is determined, composed and calculated by IISL without regard to the JM Financial Asset Management Private Limited or the Product. IISL has no obligation to take the needs of JM Financial Asset Management Private Limited or the owners of the Product into consideration in determining, composing or calculating the CNX Midcap Index. IISL is not responsible for nor has participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be converted into cash. IISL has no obligation or liability in connection with the administration, marketing or trading of the Product. IISL does not guarantee the accuracy and / or the completeness of the CNX Midcap Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL makes no warranty, express or implied, as to the results to be obtained by the JM Financial Asset Management Private Limited, owners of the Product, or any other persons or entities from the use of the CNX Midcap Index or any data included therein. IISL makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the CNX Midcap Index or any data included therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. (^) Disclaimer: BSE Telecom Index ( ) : JM Telecom Sector is not sponsored, endorsed, sold or promoted by BSE. BSE makes no representation or warranty, express or implied to the investors in JM Telecom Sector or any member of the public in any manner whatsoever regarding the advisability of investing in securities generally or in JM Telecom Sector particularly or the ability of the index to track the sectors represented in the BSE Telecom Index ( ). The relationship of BSE to the JM Financial Asset Management Pvt. Ltd. is in respect of the licensing of use of BSE Telecom Index ( ) which is determined, composed and calculated by BSE without regard to the JM Financial Asset Management Pvt. Ltd. or JM Telecom Sector. BSE has no obligation to take the needs of the investors of JM Telecom Sector into consideration in determining, composing or calculating the BSE Telecom Index ( ). BSE is neither responsible for nor has participated in the determination of the time or price at which the units under JM Telecom Sector are to be issued or in the determination or calculation of the equation by which the units are to be redeemed for the underlying securities. BSE has no obligation or liability in connection with the administration, marketing or trading of JM Telecom Sector. BSE does not guarantee the accuracy and/or the completeness and/or continuity of BSE Telecom Index ( ) or any data included therein and they shall have no liability for any errors, omissions or interruptions therein or change or cessation thereof. BSE makes no warranty, express or implied, as to the results to be obtained by the JM Financial Asset Management Pvt. Ltd., investors of JM Telecom Sector, or any other persons or entities from the use of BSE Telecom Index ( ) or any data included therein. BSE makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to BSE Telecom Index ( ) or any data included therein. Without limiting any of the foregoing, in no event shall BSE have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. (!) Disclaimer: BSE Finance Index ( ) : JM Financial Services Sector is not sponsored, endorsed, sold or promoted by BSE. BSE makes no representation or warranty, express or implied to the investors in JM Financial Services Sector or any member of the public in any manner whatsoever regarding the advisability of investing in securities generally or in JM Financial Services Sector particularly or the ability of the index to track the sectors represented in the BSE Finance Index ( ). The relationship of BSE to the JM Financial Asset Management Pvt. Ltd. is in respect of the licensing of use of BSE Finance Index ( ) which is determined, composed and calculated by BSE without regard to the JM Financial Asset Management Pvt. Ltd. or JM Financial Services Sector. BSE has no obligation to take the needs of the investors of JM Financial Services Sector into consideration in determining, composing or calculating the BSE Finance Index ( ) BSE is neither responsible for nor has participated in the determination of the time or price at which the units under JM Financial Services Sector are to be issued or in the determination or calculation of the equation by which the units are to be redeemed for the underlying securities. BSE has no obligation or liability in connection with the administration, marketing or trading of JM Financial Services Sector. BSE does not guarantee the accuracy and/or the completeness and/or continuity of BSE Finance Index ( ) or any data included therein and they shall have no liability for any errors, omissions or interruptions therein or change or cessation thereof. BSE makes no warranty, express or implied, as to the results to be obtained by the JM Financial Asset Management Pvt. Ltd., investors of JM Financial Services Sector, or any other persons or entities from the use of BSE Finance Index ( ) or any data included therein. BSE makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to BSE Finance Index ( ) or any data included therein. Without limiting any of the foregoing, in no event shall BSE have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. 14

17 In case an investor fails to specify his preference of Plans/ Sub- Plans/ Options/ Sub- Options, in the below mentioned schemes, the default Plans/ Sub-Plans/ Options/ Sub-Options would be as under : EQUITY SCHEMES Currently available facilities Sr. no. Schemes Min. investment amnt. Plans Options Sub Options Default Plan Default Option Default Sub Option 1 JM - Arbitrage Advantage Rs. 5000/- - Payout / Reinvestment - Reinvestment 2 JM Auto Sector Rs. 5000/- - Payout / Reinvestment - Reinvestment 3 JM Balanced Rs. 5000/- - Payout / Reinvestment - Reinvestment 4 JM Basic Rs. 5000/- - Payout / Reinvestment - Reinvestment 5 JM Contra Rs. 5000/- - Payout / Reinvestment - Reinvestment 6 JM Emerging Leaders Rs. 5000/- - Payout / Reinvestment - Reinvestment 7 JM Equity Rs. 5000/- Payout / Reinvestment - Reinvestment 8 JM Financial Services Sector Rs. 5000/- - Payout / Reinvestment - Reinvestment 9 JM - Housing, Infrastructure & Financial Payout / Reinvestment Rs. 5000/- - Services - Reinvestment 10 JM Healthcare Sector Rs. 5000/- - Payout / Reinvestment - Reinvestment 11 JM Small & Midcap Rs. 5000/- Regular Plan Payout / Reinvestment - Reinvestment 12 JM Tax Gain Rs. 500/- or in multiples Payout - of Rs. 500/- each - Payout 13 JM Telecom Sector Rs. 5000/- - Payout / Reinvestment - Reinvestment DEBT & LIQUID SCHEMES Currently available facilities Default Sr. no. Schemes Min. investment amt. Plans Options Sub Options Default Plan Default Option Default Sub Option JM Equity Payout / Reinvestment 1 & Derivative Rs. 5000/- - Bonus Plan - Growth Reinvestment Daily Rs. 5000/- Regular Weekly Auto Reinvestment Fortnightly Daily 2 JM Money Weekly Auto Reinvestment Auto Manager Rs. 5000/- Super Super Plus Daily Dividend Fortnightly Reinvestment Rs. 5000/- Super Plus Daily Weekly Auto Reinvestment Fortnightly JM Floater JM G Sec JM High Liquidity JM Income JM Liquid Plus Rs. 5000/- Short Term Daily Auto Reinvestment Auto - Daily Dividend Plan Reinvestment Payout / Reinvestment Rs. 5000/ Regular Plan Reinvestment - Payout / Reinvestment Rs / PF PlusPlan Reinvestment Daily / Weekly Auto reinvestment If investment amt is < Quarterly Payout / Reinvestment Rs. 1 crore then Regular Auto Rs. 5000/- Regular Plan, If investment amount Daily Reinvestment Bonus Plan is equal to or more than Rs. 1 crore but less Institutional Daily / Weekly Auto reinvestment than Rs. 5 crores then Auto Rs. 1,00,00,000/- Daily Plan Institutional Plan. If Reinvestment investment amount is Super Institutional Plan Rs. 5 crores then Super Reinvestment Daily / Weekly Auto reinvestment Rs. 5,00,00,000/- equal to or more than Auto Daily Rs. 5000/- Premium Plan Daily Auto reinvestment Institutional Plan Daily Auto Reinvestment Rs. 5000/- - Payout / Reinvestment Reinvestment - / Daily / Rs. 5000/- Regular Plan Weekly Auto Auto reinvestment Daily Reinvestment Premium Plan Rs. 5000/- Premium Plan / Daily / Auto Weekly Auto reinvestment Daily Reinvestment Monthly / Quarterly Dividend JM MIP Payout / Reinvestment Monthly Dividend Payout 8 Rs. 10,000/- - Plan/ Annual - Plan Payout / Reinvestment Rs. 5000/ Regular Plan JM Short If investment amt is < Reinvestment 9 Rs. 1 lac then Regular, Term Institutional Payout / Reinvestment Rs / else Institutional Plan Wherever there is an ambiguity in choice of Plan/Sub-Plan/Option/Sub-Option opted for, the application will be treated as invalid and summarily rejected. Note: Dividend shall be declared at the descretion of the Trustee subject to availability of distributable profits as compiled in accordance with SEBI (MF) Regulations, No dividend under Daily shall be distributed in cash even for those unitholders who have opted for payout where such dividend on a single payout is less than Rs.100/-. Consequently, such dividend (less than Rs.100/-) shall be compulsorily re-invested. Default

18 schemes at a glance Scheme Details JM Arbitrage Advantage JM Equity & Derivative JM High Liquidity Launch Date June 2006 Feb 2005 Dec 1997 ***Super IP: May 04 Premium Plan - Daily Div Option: 10 Feb 2006 JM Money Manager Sept 2006 June 2003 Premium Plan October 2004 JM Liquid Plus JM Floater - Short Term Plan JM Short Term JM Income JM G-sec (Regular Plan) JM G-sec (PF Plus Plan) June 2003 June 2002 Dec 1994 Sept 1999 Dec 2003 Entry Load Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Exit Load 0.50% of NAV on all investments if redeemed within 30 days of transfer / allotment of units. Plans/Options On all investments of less than and including Rs. 1 crore : 2% for investments redeemed within 25 days from the date of allotment; 1.5% for investments redeemed within 85 days from the date of allotment; 1% for investments redeemed within 175 days from the date of allotment. On all investments above Rs. 1 crore: 0.50% for investments redeemed / switched out within 25 days from the date of allotment. Bonus Option Nil Regular Plan : Nil Super Plan : 0.1% if redeemed within 30 calendar days from the date of allotment of units. Regular Plan: Bonus Option Daily Div Option Weekly Div Option Quarterly Div Option Inst. Plan: Daily Div Option Weekly Div Option Super Inst. Plan: Daily Div Option Weekly Div Option Premium Plan(PP): Daily Div Option Minimum Rs Rs Regular & Premium Investment # Plan : Rs ** Rs. 1 Crore *** Rs. 5 Crore Dividend - - $ Daily / Frequency ## Weekly / Qtly **Daily / Weekly ***Daily / Weekly Premium Plan: Daily Super Plus Plan: Nil Regular Plan: Daily Div Option Weekly Div Option Fortnightly - Div Option Super Plan: Daily Div Option Weekly Div Option Fortnightly - Div Option Super Plus Plan: Daily Div Option Weekly Div Option Fortnightly - Div Option Regular Plan 0.50% on all investments upto and including Rs. 5 Lakhs, if such investments are redeemed or switched out within 90 days of investment. Nil for investments above Rs. 5 Lakhs. Premium Plan: Nil Regular Plan: Daily Div Option Weekly Div Option Premium Plan: Daily Div Option Weekly Div Option Rs Regular & Premium Plan:Rs Daily / Weekly / Fortnightly (with compulsory reinvestment) Regular Plan: Daily / Weekly Premium Plan: Daily / Weekly Nil Nil 0.40% for investments upto Rs. 5 Lakhs if redemptions / switches are carried out within a period of 90 days from the date of investment. Nil for investments more than Rs. 5 Lakhs. Daily Dividend Option Regular Plan Institutional Plan : Rs Rs **Rs. 1 Lakh 0.25% for investments upto Rs. 2 Lacs redeemed or switched out within 90 days from date of investment. No exit load for investments above Rs. 2 Lacs. Regular Plan Nil 0.60% (+) PF Plus Plan Rs Rs Rs. 1 Lakh Daily Redemption T+2 (****) T+2 (****) T+1 Time ### T+1 T+1 T+1 T+1 T+2 T+2 T+2

19 schemes at a glance Scheme Details JM Contra JM Equity JM Basic JM Emerging Leaders JM Small & Midcap JM HI FI JM Auto Sector JM Healthcare Sector JM Telecom Sector JM Financial Services Sector JM Multi Strategy JM Tax Gain JM Balanced JM MIP Launch Date July 2007 Dec 1994 March 1997 June 2005 March 2007 Feb 2006 June 2004 June 2004 Nov 2006 Nov 2006 September 2008 March 2008 Dec 1994 Aug 2003 Entry Load 2.25% m Nil m m Nil Exit Load 0.50% ~ Plans/ Options Mly. Div Option Qly. Div Option Ann. Div Option Minimum Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs. 500 Rs Rs Investment # Dividend Frequency ## Monthly / Quarterly / Annually Redemption T+3 Working Time ### Days T+3 Working Days T+3 Working Days T+3 T+3 T+3 Working Days T+3 T+3 T+3 T+3 T+3 T+3 Working Days T+3 Working Days T+2 Abbreviations : ( $ ) Regular Plan. (*) For Regular - Daily s / Options. (**) For Institutional Plan. (***) For Super Institutional Plan. (+) Regular Plan - Exit load of 0.25% for investments upto Rs. 2 Lacs redeemed or switched out within 90 days from date of investment. No exit load for investments above Rs. 2 Lacs. PF Plus Plan - Exit Load of 0.60% at applicable NAV if redeemed either through normal redemption or exercising Fixed Period RedemptionOption (FPRO) or switched out within 180 days from the date of the investment. No exit load would be applicable for cases covered under Automatic Annual Reinvestment Option (AARO) and Automatic Capital Appreciation Withdrawal Option (ACAWO). ( µ ) 2.25% of NAV on all investments of less than Rs. 3 crores; 2.25% for investments made through Systematic Investment Plan (SIP). ( µ µ ) Nil for investments of Rs.3 crores and above. Nil for investments made through Systematic Transfer Plan (STP). ) 1.00% of NAV on all investments of less than Rs. 3 crores, in case the investments are redeemed within 1 year of transfer / allotment of units. 1.00% of NAV on all investments made through SIP in case the investments are redeemed within 1 year of transfer / allotment of respective installments. ) 0.50% of NAV on all investments of Rs. 3 crores and above, in case the investments are redeemed within 91 days of transfer / allotment of units. ) 2.25% on all investments made through STP, in case the investments are redeemed within 2 years of transfer / allotment of respective installments. (~) 0.50% of NAV on all investments upto and including Rs. 5 lakhs, if redeemed or switched out within 3 months of investment and Nil for investments exceeding Rs. 5 lakhs. However, no exit load is applicable for investors availing Systematic Withdrawal Option. ( # ) After the minimum investment, additional investment under all Schemes / Plans is any amount thereafter. For ongoing investment in an existing folio, the minimum investment will be Rs. 1,000/- or any amount thereafter. For investing under SIP/STP/SWP option, please refer to respective scheme offer documents. ( ## ) Dividends shall be declared at the discretion of the Trustee subject to availability of distributable profits as computed in accordance with SEBI (Mutual s) Regulations, ( ### ) It will be our endeavor to dispatch redemption proceeds as indicated in the table above. As per the Regulations, the is required to dispatch redemption proceeds within 10 Business days of receiving a valid redemption request. For further details, investors are requested to refer to the Scheme Offer Document. (****) The redemption shall be in terms of Interval Period defined hereinbelow. Redemption request can be submitted to the official point of acceptance on any business day till 3.00 pm. All redemption requests received till Friday (in case such Friday is a holiday then the last business day) of the week preceding the interval period, would be processed at the NAV of the Interval Period. The Interval period will be the settlement Thursday (the settlement day for derivatives segment in the NSE which is currently last Thursday of the month) or any day which is declared as the settlement day for Derivatives segment by the NSE. Illustrative Example: Interval Period Applications for redemption / switchout Applicable NAV for the redemption/ switchout For July All redemptions received till before 3.00 p.m. NAV of For August All redemptions received on after 3.00 p.m. and during the period to before 3.00 p.m. NAV of It is clarified that the cut-off timings will also be applicable to investments made through sweepmode. Inter - Equity and Intra - Equity Scheme Switches: Entry Load : No entry-load for inter and intra-equity switches (excluding to and from JM Arbitrage Advantage and during NFO ). Exit Load : No exit load for inter and intra equity switches except in case of (i) switches by SIP/STP investors within 24 months (for cases registered from up to ) and within 12 months (for cases registered upto ) of respective SIP/STP installments (ii) switches by STP investors (for cases registered w.e.f ) within 24 months of respective STP installments (iii) switches to/from JM AAF from/to any equity schemes In the event of non fulfillment of the criteria specified for a valid SIP application, the AMC reserves the right to revert all the previous allotments and reallot the units afresh with loads (in case of applications for SIP transactions routed through a broker/agent/distributor) as applicable on the respective due dates by treating them as normal investments. In addition the AMC may also recover the amount of load waived for all allotments directly from the investor or by debit to his folios maintained with JM Financial Mutual. The revertal and reprocessing of units in the above case would be subject to the investor meeting the minimum subscription amount (after deduction of permissible DD charges). In case an investor is unable to meet the minimum subscription criteria due to non fulfillment of the other conditions or discontinuation of the SIP on request by the investor, the AMC reserves the right to redeem/refund with current valuation on the date of review by the AMC. The above details are subject to provisions laid down in the respective scheme Offer Documents.

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