JM Multi Strategy Fund Kim

8/14/2019 JM Multi Strategy Fund Kim

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Resident Non-Resident (Please4 ) as per your status

DISTRIBUTOR INFORMATION FOR OFFICE USE ONLY

Name & Broker Code/ARN Sub-Agent/Broker Code Collection Centres Serial No. Date o Receipt Time o Recei

1. INVESTMENT DETAILS JM MULTI STRATEGY FUND Dividend Option Payout Re-investment* Growth Option*

*Default option / sub-option (in case of no information or ambiguity)

2. EXISTING UNIT HOLDERS INFORMATION(Please fll in your details mentioned below and proceed to section 5) Folio No.

3. APPLICANT INFORMATION (It is mandatory to submit veri ed copy o PAN proo or all investments ailing which application will be rejected) (Re er instruction no. 8)(To be lled in block letters. Use one box or one alphabet, leaving one box blank between name and surname)Full Name o Sole/1st Applicant/Minor/Karta o HUF/Non-individual/Partner in case o Partnership Firm /Proprietor in case o Proprietorship Firm: Date o Birth

D D M M Y Y Y Y

Full Name o Guardian(in case o Minor) /Contact Person(In case o non-individual investors) Relationship with Minor[Pl.4 ] Mother Father Legal Guardian

Address(DO NOT REPEAT NAME) in ull o Applicant/Parent OR Guardian o Minor/Indian address in case 1st Applicant is NRI/FII (Post Box No. alone is not su cient)

Location/City

Dist. Pin Code State

STD Code Tel. Fax

Email-ID MobilePre erable mode o communication E-mail Yes No SMS Alert Yes No(Re er instruction no. 18)

Full Name o Second Applicant

Full Name o Third Applicant

Permanent Account Number (PAN) - Mandatory {Please submit a verifed copy o PAN card or all investors. Incase the 1st applicant is minor, please provide Guardians PAN. Re er to Instruction No. 8} Verifed Copy o PANCard enclosed Pl.() Know Your Customer (KYC) only or investment o Rs. 50,000/-& above. Please re er point 15 in the KIM Pl.()

1st Applicant Copy o KYC acknowledgement enclosedGuardian (in case 1st applicant is minor) Copy o KYC acknowledgement enclosed2nd Applicant Copy o KYC acknowledgement enclosed3rd Applicant Copy o KYC acknowledgement enclosed

Status/Category o the 1st Applicant [Pl.4 ]1. Resident Individual 3. HUF 5. AOP/BOI 7. Proprietorship Firm 9. Trust 11. NRI 13. Government Body 15. Banks2. On behal o minor 4. Company 6. Partnership Firm 8. Body Corporate Listed Unlisted 10. Society 12. FIIs 14. Financial Institution 16. Others (

4. BANK PARTICULARS(It is mandatory to urnish bank particulars ailing which application shall be rejected)Bank Account No. Account Type : Savings Current NRE NRO FCNR

MICR Code IFSC Code Direct Credit Facility:Please re er instruction no. 19

Bank Name

Branch Address

City Pin

Received an application rom Mr./Ms./M/s.

Choice o Options/Sub-option+ Amount Paid (Rs. Payment Details(1st Cheque /DD in case o SIP)

Growth* Dividend Rs. (in Figures)Rs. (in Words )

Amt.Cheque/DD No.

dated

Bank & BranchReinvestment* Payout

+Please select the appropriate option/sub-option under ofer. *De ault option/sub-option (in case o no in ormation or ambiguity)

Collection Centres Stamp &Receipt Date and Time

Cheque/DD is subject to realisation

Serial No:MS-

ACKNOWLEDGEMENT SLIP

(to be filled in by the Investor)

JM Financial Asset Management Private LimitedCorporate Office : 5th Floor, A-Wing, Laxmi Towers, Bandra-Kurla Complex,

Mumbai - 400 051. Tel. No.: (022) 39877777 Fax Nos .: (022) 26528377-78Email: [email protected] Website : www.JMFinancialmf.com

JM Financial Asset Management Private LimitedCorporate Office : 5th F loor, A-Wing, Laxmi Towers, Bandra-Kurla Complex,

Mumbai - 400 051. Tel. No.: (022) 39877777 Fax Nos .: (022) 26528377-78Email: [email protected] Website : www.JMFinancialmf.com

Serial No: MS -An offer for units @ Rs. 10/- each during the New Fund Offer period

An open ended equity oriented fundKEY INFORMATION MEMORANDUM & APPLICATION FORM

NEW FUND OFFER COMMENCES ON : 31/07/200 8NEW FUND OFFER CLOSES ON : 29/08/2008SCHEME REOPENS FOR CONTINUOUSSALE & REPURCHASE ON OR BEFORE : 28/09/2008

An offer for units @ Rs. 10/- each during the New Fund Offer period

An open ended equity oriented fund

Mode o Holding [Pl.4 ]1. Single2. Joint*3. Either or Survivor/s(* Default, in case of ambiguity whenapplicants are more than one )

Occupation o the 1stApplicant [Pl.4 ]

1. Business2. Pro essional3. Agriculturist4. Private sector service5. Retired6. Student7. Housewi e8. Public Sector / Govt. service9. Forex Dealer

10 Others (pl. speci y)________


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5. INVESTMENT AND PAYMENT DETAILSPlease draw Cheque / DD in avour o JM MULTI STRATEGY FUND (Re er instruct ion nos. 6 & 7)**. Minimum investment amount per application oand in multiples o Re. 1/- therea ter. Please ensure that is only one Cheque / DD per Option

Cheque /DD No. Cheque / DDAmount (Rs.

DD Charges (Rs. Gross Total Amount (Rs. Bank Account Number Bank & Branch Account Type@(SB/CA/NRE/NRO/FCNR

** Allotment o units is subject to realisation o Cheque/DD. No cash payments are accepted.@For NRI(s Source o Fund: NRE NRO FCNR Direct Remittances rom abroadPlease mention the application no. on the reverse o the Cheque / DD. The details o the bank account provided above pertain to my / our bank account in my / our name Yes No

I No, my relationship with the bank account holder is Spouse Child Parent Relative Sibling Friend Others. Application orm without this in ormation is liable to be

6. FOR INVESTMENT BY NRI(s /FII(sOverseas Address

City Country Pin/ZIPApplicable to NRIs only :I / We* confir m t hat I a m / we* are Non-R eside nt of I ndian Nati onali ty / Origi n an d I /we* hereby confirm that the funds for subscription have been remitted from abroad throughapproved banking channels or from funds in my / our* Non Resident External / Ordinary Account / FCNR Account.Please ( ) Repatriation basis Non-Repatriation basis (* Please strike out whichever is not applicable.)

7. SYSTEMATIC INVESTMENT PLAN (SIP(Re er to terms, conditions and instructions or SIP & llup separate orm or each SIP date / requency / plan / option )

Enrolment Period Start DateD D M M Y Y Y Y End Date D D M M Y Y Y Y

Payment Mechanism (please4 ) Auto Debit Facility (Direct Debit / ECS)(please attach Auto Debit Registration cum Mandate Form)*The First/Initial investment will be through cheque/DD and second instalments onwards will be through Auto Debit (i.e.ECS/DirectDebit) on or a ter 1st Nov. 2008 or monthly option & a ter 1st Jan. 2009 or quarterly o

SIP DATE(please4 only one) 1st 5th 10th 15th 20th 25thNo o SIP Installments Frequency (please tick any one)Monthly Quarterly

No. o cheques / installments Cheque Nos.: From __________________ To _______________________ SIP Installment amount :

Name o Bank & Branch :

8. NOMINATION DETAILS(Re er instruction no. 19)I/We hereby nominate the under mentioned person(s) to receive the amount to my/our credit in the event o my/our death in proportion to the percentage (%) indicated against the NaNominee(s). I/We also understand that all payments and settlements made to such nominee(s) shall be a valid discharge by the AMC / Mutual Fund / Trustee.

No. Name & Address o the Nominee/s (upto 3 Nos. Relationship with the rst holder Share (% (in multiple o 1% Age o the Nomi123

Date o Birth D D M M Y Y Y Y Guardian Name RelationshipAddress

City Pin Signature o Nominee / Guardian(Not mandatory

9. DECLARATION & SIGNATURES

10. LIST OF DOCUMENTS ATTACHED{Please mention below the details o documents (other than cheque and DD) attached with the orm}

1. KYC Acknowledgement 3. 5. Total Nos. o attachments2. Veri ed copy o PAN Proo 4. 6. To be lled in by applicant To be veri ed by o ce

Account debit certi cate/ oreign inward remittance certi cate in case payment is made by DD rom Abroad or rom NRE/FCNR account

Registrar: Karvy Computershare Private LimitedKarvy Plaza, H. No. 8-2-596, Avenue 4 Street No. 1, Banjara Hills, Hyderabad 500 034 Tel No.: 040 2331 2454 / 2332 0251 / 751. Fax No.: 040 - 2331 1968 E-mail: [email protected]

Note All uture communication in connection with this application should be addressed to the Registrar at the address given above, quoting ull name o First/Sole Applicant, the Application Serial Number, the name o tdate and the place o the Collection Centre / Investor Service Centre where application was lodged.

Accompanying documentsPlease submit the ollowing documents with your application (where applicable). All documents should be original / true copies certi ed by a D iCompany Secretary/Authorised Signatory/Notary Public.

Documents Individual Companies Socie tiesPartnershipFirmsInvestmentsthrough POA Tru sts NRI Flls

Resolution/Authorisation to invest 4 4 4 4List o Authorised Signatories withSpecimen signature(s) 4 4 4 4 4 4Memorandum & Articles o Association 4Trust Deed 4Bye-laws 4Partnership Deed 4Overseas AuditorsCerti cate 4Notarised Power o Attorney 4Bank con rmation o Non-ResidentAccount Type/FIRC/Approval rom FIPB 4

Proo o Identity 4 4Proo o Address 4 4 4 4 4 4 4 4

Having read and understood the contents of the Offer Document & KIM of the scheme and subsequent amendments thereto including the sectionon Prevention of Money Laundering and Know Your Customer, I/We hereby apply to the Trustee of JM Financial Mutual Fund for units of theScheme as indicated above and agree to abide by the terms and conditions, rules and regulations of the Scheme. I/We have not received andwill not receive nor will be induced by any rebate or gifts, directly or indirectly, in making this investment. I/We further declare that the amountinvested by me/us in the scheme of JM MULTI STRATEGY FUND is derived through legitimate sources and is not held or designed for the purposeof contravention of any act, rules, regulations or any statute or legislation or any other applicable laws or any notifications, directions issued byany governmental or statutory authority from time to time.It is expressly understood that we have the express authority from our constitutional documents to invest in the units of the Scheme and theAMC/Trustee/Fund would not be responsible if the investment is ultravires thereto and the investment is contrary to the relevant constitutionaldocuments.I/We authorise this Fund to reject the application, revert the units credited, restrain me/us from making any further investment in any of theschemes of the Fund, recover/debit my/our folio(s) with the penal interest and take any appropriate action against me/us in case the cheque(s)/ payment instrument is/are returned unpaid by my/our bankers for any reason whatsoever.I/We hereby further agree that the Fund can directly credit all the dividend payouts and redemption amount to my bank details given above.

Date : D D M M Y Y Y Y Place : _____________________________

CHECKLIST Please ensure that your Application Form is

Complete in all respects & signed by all applicantsName, Address and Contact Details are mentioned in ull.Bank Account Details are entered completely and correctly.Permanent Account Number (PAN) o all Applicants is mentioned or all investments and veri ed copy o PANCard is submitted.Appropriate Option / Sub-option is selected. I the Dividend Option is chosen, Dividend Payout or Re-investmentis indicated.I units are applied or jointly, Mode o Operation o account is indicated.

KYC certi cation is done for investment of Rs. 50,000/- & above w.e.f. 01/02/2008. Investment Cheque/DD is drawn in favour of JM MULTI STRATEGY FUND, dated and signed.

Application Number is mentioned on the reverse of the Cheque/DD. Documents, as applicable, are submitted along with the Application Form.

Sole/First Applicant/Guardian

Second Applicant/Guardian

Third Applicant/Guardian

Serial No: MS -


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1. Please read the Ofer Document & KIM containing the terms o ofer. Your attention is particularly drawn to the sections onPrevention o Money Launderingand Know Your Customer. All applicants are d eemed to have accepted the terms uponlling the application orm and tendering the payment.

2. The application orm is or Resident and Non Resident Indian (NRI) investors and should be completed in English in BLOCK

Letters. Please (4) in the appropriate box, wherever boxes have been provided.3. The Signature(s) may be in English or in any o the Indian languages speci ed in the Eighth Schedule o the Constitution o

India. Thumb impressions must be attested by a Magistrate or a Notary Public or a Special Executive O cer under his/hero cial seal. Applications by minors should be signed by their guardians. In case o HUF, the Karta should sign on behal o the HUF. In case o other non-individual investors, authorized signatories should sign under their o cial seal and designa-tion.

4. Application orm incomplete in any respect or not accompanied by the requisite documents and/or Cheque or DemandDra t (DD) or the amount payable are liable to be rejected and the money paid will be re unded without any interestthereon. An application may be accepted or rejected at the sole and absolute discretion o the Trustee, without assigningany reason whatsoever.

5. Investors are requested to indicate their choice o Plans / Options / Sub-options. I no indication in the relevant box isgiven, the investment will be deemed to be or the Growth Option. I the mode o payment o dividend is not indicated,the choice will be deeme d to be reinvestment. However, in case the dividend payable to any unitholder is below Rs. 100/-,then the same will be automatically reinvested.

6. Mode o Payment: The Cheque/DD should be drawn in favour of theJM Multistrategy Fundand crossedAccountPayee Only .The Cheque/DD should be payable locally at the centre where the application is deposited. The Cheque / DDshould be drawn on any Bank which is situated at and is a member / sub-member o the BankersClearing House. Cheques/ DDs drawn on a Bank not participating in the Clearing House will not be accepted. The application form number should

be mentioned on the reverse of the Cheque/DD that accompanies the application. Investors residing in centres, wherethe JM Financial Mutual Fund does not have any collection arrangement, are authorized to make payment by DDs/RTGS/NEFT/Trans er. The AMC will, in the normal course, not reimburse the DD charges. However the AMC reserves the right toallot units equivalent up to the permissible DD charges by adding the same to the investment made by the investor, i soclaimed by the investor in the application orm. In the event that the total investment including permissible DD chargesis not su cient to allot minimum number o units in the Scheme, the AMC reserves the right to re und the amount rep-resented by the investment made,without any interest. DD charges as levied by State Bank o India would be treated aspermissible DD charges. Eligibility or DD charges are as under: For individuals (For NFO and ongoing subscriptions) DDcharges would be borne by the Asset Management Company (AMC) only in respect o individual investors residing inlocations where the AMC does not have a branch / ISC (Investor Service Center ) or other collec tion acilities subject to DDbeing payable and deposited at any o the collection centers o JM Financial Mutual Fund. The permissible DD charges orindividual investors are not restricted by the number o applications or the amount invested. For Non individualsDuringNFOIn respect of non-individual investors, during the NFO, the DD charges will be borne by the AMC as follows : Onlyone application is eligible for bene t of DD charges Irrespective of the amount of investment, permissible DD chargeswill not exceed the permissible DD charges as calculated for an investment of Rs. 10 lacs subject to SBI Rates. In caseo multiple applications during the NFO period, the DD charges will be paid only or one o the applications having thehighest investment amount, subject to the above limit.For ongoing subscriptions Only one application per businessday per Scheme / Pl an / Option is eligible for bene t of DD charges Irrespective of the amount of investment, permissibleDD charges will not exceed the permissible DD charges as calculated or an investment o Rs. 10 lacs subject to SBI Rates. In case of multiple applications in the same Scheme, on a particular transaction day, the DD charges will be paid onlyfor one of the applications having the highest investment amount subject to the above limit. Payments by Stockinvests/Outstation Cheques/Outstation Dra ts are liable to be rejected in the normal course.

7. For NRI Investors: Repatriable BasisPayments by NRIS/ FIIs/Persons o Indian Origin (PIOS) may be made by eitherinward remittances through normal banking channels or out o unds held in Non-Resident External Rupee Account (NRE)/Foreign currency Non Resident account (FCNR). In case Indian Rupee dra ts are purchased abroad or rom NRE/FCNR Ac-count, an Account debit Certi cate/Foreign Inward Remittance Certi cate (FIRC) rom the bank issuing the d ra t con rm-ing the debit shall be enclosed.Non-repatriable Basis:Payments by NRIs/ FIIs/Persons o Indian Origin (PIOS) may be made either by inward remit-tances through normal banking channels or out o unds held in NRE/FCNR/ Non- Resident Ordinary Rupee Account (NRO).In case Indian Rupee dra ts are purchased abroad or rom NRE/FCNR Account, an Account debit Certi cate/FIRC rom thebank issuing the dra t con rming the debit shall be enclosed.

For Subscription made by NRE/FCNR/NRO Account cheque, the application orm must be accompanied with photocopy o the cheque/FIRC rom the bankers.

Only HDFC Bank NFO B ranches and AMC Branches will be accepting the NRI applications along with necessary documentsas above during NFO period.

8. Statutory Details: As per SEBI Circular nos. IIMARP/ MF/CIR/07/826/98 dated April 15, 1998, and IMD/CIR/No. 6/4213/04 dated March 1, 2004, it is mandatory or applicants to mention their bank details in their applications or purchase orredemption of units. In accordance with Circular dated April 27, 2007 issued by the Securities and Exchange Board of India (SEBI), Permanent Account Number (PAN) issued by the Income Tax authorities will be used as the sole identi-cation number or all investors (existing and prospective) transacting in the securities market, including mutual unds,irrespective o the amount o transaction.

In view o the above, with efect rom January 1,2008 it is mandatory or all existing and prospective investors joint holders, guardians o minors, NRIs etc) to enclose a veri ed copy o PAN proo along with the applicatransaction in the schemes o JM Financial Mutual Fund. The veri cation o the PAN rom the original PAN cardby any o the ollowing under his/her signature, rubber stamp and date

any ARN holder if the PAN proof is self attested by Investor Bank Manager,

notary,

o cials of JM Financial Mutual/ Investor Service Centres of Karvy Computershare Pvt. Ltd. Investorsthrough approved Web Portals are also required to get their PAN veri ed by their Web Portals.

In case, the investor does not con orm to the above requirement o submission o veri ed copy o PAN orproduces original PAN proo or veri cation or the PAN details as per urnished veri ed copy o PAN proodoes not match with the Website o Income Tax Deptt. as prescribed by SEBI, the AMC reserves the rightreject the application be ore allotment and re und the investment amount, without any interest.

9. Documents required: In case o an application under Power o Attorney or by a Limited Company, Body CoRegistered Society, HUF, Trust or Partnership Firm, etc. the relevant Power o Attorney or the relevant resolutiity to make the application as the case may be, or duly certi ed copy thereo , along with the Memorandum andAssociation / Bye-laws / HUF Deed / Trust Deed / Partnership Deed etc. must be lodged alongwith the applic

In case o investments above Rs. 50000/-, the copy o the KYC certi cate must be lodged along with a applica

10. For Systematic Investment Plan (SIP) : Please re er point nos. 4(i), 4 (ii) & 4 (iii) in the KIM.

11. Applicants should indicate their status/category by ticking the appropriate box. Applications without a tick iCategorybox will be considered as investment by Othersand applicable tax i any, will be deducted / paya

12. Applicants should speci y the mode o holding. In case o joint holders, the rst named holder shall receive allStatements, dividend/ redemption/re und warrants and any other correspondence sent rom time to time. In casthan one investor, where the mode o holding is not speci ed, it would be treated as joint holding.

13. Duly completed application orms alongwith the payment instrument may be submitted on any working dathe Collection Banks and at the Corporate O ce o JM Financial MF/ Branches during the NFO. The addressesBanks /JM Financial MF Investor Service Centers(ISCs) are provided in the Key In ormation Memorandum.

14. No receipt will be issued or the application money. The Collection Banks/ ISC will stamp and return the ackslip in the application orm, to acknowledge receipt o the application.

15. I you are an existing unitholder, please complete your details at section 2 and proceed to section 5.

16. In case o investment(s) in the scheme through switch-in(s) rom any other scheme(s) o the und, the proceewill be credited to the scheme as p er current applicable service standards or switched-out schemes.

17. Applications, complete in all respects with valid document, received through post/courier within reasonabtime rom the closure o the New Fund Ofer period will be accepted, i received by AMC branches only.

18. Mobile / E-mail CommunicationUnitholders can obtain nancial and non- nancial in ormation about their transactions e.g. sale, purchase, ddeclarations, etc. through SMS Alerts.This acility is ofered ree o cost to all unitholders whose mobile n

registered with Fund / who register themselves or the acility by writing to the Registrar and Transer Agent, mtheir olio numbers and mobile numbers. Account Statements / Annual Reports, etc. can be sent to each Unicourier / post / e-mail. Unit holders who have opted to receive these documents by e-mail will be required toand print the documents a ter receiving email rom the Mutual Fund. Should the Unit holder experience any accessing the electronically delivered documents / sms alerts, the Unit holder shall promptly advise the Mutuenable the Mutual Fund to make the delivery through alternate means. In case o non-receipt o any such intidi culty within 24 hours rom receiving the e-mail / sms alert, it will be regarded as receipt o e-mail / sms aleUnit holder. It is deemed that the Unit holder is aware o all security risks including possible third party intesms alert / e-mail and contents o the sms alerts / documents becoming known to third parties. The monthly /actsheets shall be displayed at the website o the Mutual Fund. The Unit holders can request or a copy o the by post / e-mail. The AMC would arrange to dispatch these documents to the Unit holder concerned.

19. Direct Credit FacilityThe AMC will credit the investors account with redemption/ dividend proceeds i the bank mandate registaccount is in any o the ollowing banks with which the AMC has direct credit acility: 1 - ABN Amro Bank3 - BNP Paribas Bank 4 - Citibank 5 - De utsche Bank 6 - Development Credit Bank 7 - HDFC B ank 8 - HSBC10 - IDBI Bank 11. Indusind Bank 12 ING Vysya Bank 13 - Kotak Mahindra Bank 14 - Stanchart Bank & 1

The AMC may also efect the credit through ECS (wherever possible), or those cases, where direct credit acilsible subject to the availibility o MICR code and complete bank details, as and when or direct credit ECS acby the AMC.

In the event o inadvertent allotment, the AMC reserves the right to revert the transaction and re und theinvestment amount without any interest.

INSTRUCTIONS TO INVESTORS FOR FILLING UP THE APPLICATION FORM


NOMINATIONThe nomination can be made only by individuals applying or / holding units on their own behal singly or jointly. Non-individuals including Society, Trust, Body Corporate, Partnership Firm, Karta o Hindu Undivided Famnominate. A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unitholder. Nomination can also be in favour of the Central Government, State person designated by virtue of his o ce or a religious or charitable trust. The Nominee shall not be a Trust, other than a Religious or Charitable Trust, Society, Body Corporate, Partnership Firm, Karta of a Hindu UndividedA Non-Resident Indian can be a Nominee subject to the Exchange Control Regulations of RBI, in force, from time to time. Nomination in respect of the u nits stands rescinded upon the transfer of units. Transfer of unitdischarge by the Asset Management Company against the legal heir. The cancellation of nomination can be made only by those individuals who hold units on their own behalf singly or jointly and who made the original nomination, the nomination shall stand rescinded and the Asset Management Company shall not be under any obligation to trans er the units in avour o the Nominee.

Existing and new investors can make a resh nomination which will supersede all existing nominations in the olio by ling a resh nomination orm.

The Multiple Nomination Facility has been provided to enable Unitholders to nominate more than one person, subject to a maximum o three, in whom the Units held by the Unitholder shall vest in the event o the demismultiple nominees can be made per olio.

In case o multiple nominations, it is mandatory or unitholders to indicate the percentage allocation in avour o the nominees in the nomination orms/ requests letter in whole numbers such that it totals to 100%, so that theto the unitholders. I the percentage allocation is not mentioned or is le t blank, the AMC shall apply the de ault option o equal distribution among all the nominees as designated by the deceased Unitholder. In case o 3 de ned, the allocation by de ault will be 34%,33% and 33% respectively or each nominee in the sequential order.


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KEY INFORMATION MEMORANDUM

An offer for units @ Rs. 10/- each during the New Fund Offer period and at NAV based prices thereafter.

SPONSOR : JM Financial LimitedTRUSTEE : JM Financial Trustee Company Private LimitedREGISTRAR : Karvy Computershare Private LimitedINVESTMENT MANAGER : JM Financial Asset Management Private Limited

Corporate O ce: 5th oor, A-Wing, Laxmi Towers, Bandra-Kurla Complex,Mumbai - 400 051. Tel. No. : 022-3987 7777 Fax Nos. : 022-2652 8377 / 78Website: www.JMFinancialm .com Email: mktg@jm nancial.in

NAME OF THE SCHEME: JM MULTI STRATEGY FUND1. INVESTMENT OBJECTIVE

The investment objective o the Scheme is to provide capital appreciation by investing in equity and equity related securities using a combination o strategies2. ASSET ALLOCATION PATTERN

Under normal circumstances the investment pattern o the Scheme would be as ollows :

Security Maximum Exposure Risk Pro leEquity & equity related instruments 65% - 100% Medium to HighMo ne y m ar ke t i ns tr um ent s / de bt se cu ri ti es (i nc lu di ng se cu ri ti se d d ebt * to th e e xt en t o 2 0% ) 0 % 35 % Low to Me di um*excluding oreign securitized debt.The AMC intends to invest in derivative instruments in accordance with the SEBI Regulations, as and when opportunities arise in the derivatives markets. The investment inderivatives will be broadly in line with the investment objective o the Scheme. The above limits s hall be in line with the investment objective o the Scheme.The Trustee may, rom time to ti me, pending deployment o unds o the Scheme in securities in terms o the investment objective o the Scheme, invest the unds o theScheme in short-term deposits o s cheduled commercial banks subject to compliance with SEBI Circular SEBI/IMD/CIR No.1/ 91171 /07 dated April 16,2007.

Changes in Asset Allocation PatternSubject to the SEBI Regulations, the asset allocation pattern and maturity pro le indicated above may change rom time to time, keeping in view market conditions, marketopportunities, applicable regulations and political and economic actors. It must be clearly understood that the percentages stated above are only indicative and not absolute. Thechanges in the investment pattern will be in con ormity with the investment objectives and basic nature o the scheme and asset allocation can be altered only or a short termperiod on de ensive considerations. Provided urther and subject to the above, any change in the asset a llocation pattern afecting the investment pro le o the Scheme shallbe efected only in accordance with the provisions o sub-regulation 15A o Regulation 18 o the SEBI (MF) Regulations as detailed later in this ofer document.

3. RISK PROFILE OF THE SCHEMEMutual und investments are subject to market risks. Please read the ofer document care ully or details on risk actors be ore investment

4. INVESTMENT PLANS / OPTIONS

The Scheme ofers investors two investment Options (a) Growth Option (b) Dividend Option.The options under the Scheme will have a common port olio.Dividend Option shall ofer investors the acilities o : (a) Dividend Payout and (b) Dividend Reinvestment. Under dividend reinvestment, dividends declared will be reinvestedinto the Plan / Scheme.Investors are requested to indicate their pre erence while investing in the Scheme. In case an investor ails to speci y his pre erence, he shall be deemed to have opted toselect the Growth Option. In case o Dividend Option, the investor shall have the choice o dividend payout and dividend reinvestment options. Under dividend reinvestment,dividends declared will be reinvested into the Plan / Scheme. I an investor ails to speci y his choice under Dividend Option, he shall be deemed to have opted or dividendreinvestment. However, in case the dividend payable to any unit holder is below Rs. 100/- than the same may be automatically reinvested.Systematic Investment Plan (SIP) / Systematic Withdrawal Plan (SWP) / Systematic Trans er Plan (STP) will be available in the Scheme as under.

4(i). Systematic Investment Plan (SIP)Under this acility, by investing a xed amount at regular interval, Unitholders can take advantage o the bene ts o Rupee Cost Averaging, at the same time investing a xedamount each month.SIP can be done through1. ECS Debit acility in those locations where ECS acility is available and or which the AMC has made arrangements.2. Direct Debit acility with certain banks and or which the AMC has made arrangements.Alternatively, the investor may submit post-dated cheques drawn on any city in India subject to the rst cheque/DD being payable at the location o Point o Acceptancewhere the SIP request is being submitted.To avail o the acility o Auto Debit (ECS or Direct Debit) or SIP rom the second SIP installment onwards, the applicant is required to give standing instructions to hisbankers in the prescribed orm to debit his bank accounts at periodic Intervals and credit the installment amount to the Bank Account o JM Financial Mutual Fund directlyor through any o the service providers appointed by the AMC. The Bank Account Holder/s has/have to sign the Authorization Request Form meant or B ank in case o AutoSIP in the same order as they maintain their bank account. The Investor is advised to contact the nearest ISC or current list o Banks accepting Direct Debit mandates or orthe list o cities where ECS acility is available. The list o cities/banks or Auto Debit (through ECS/Direct Debit) may be modi ed/updated/changed/removed at any time inuture, entirely at the discretion o JM Financial Mutual Fund without assigning any reason or prior notice to investors. In case o removal o any city/bank rom the currentlist, the Auto SIP instructions or investors in such locations/banks will stand automatically discontinued without any prior notice. JM Financial Asset Management Pvt Ltd.,its Registrars and other service providers will not be responsible, i the transaction is delayed or not efected or the investors bank account is debited in advance or a ter thespeci c SIP date due to various cycles o ECS/Clearing due to any reason.Investment can be made by the investor under SIP in any o the Plans / Options.The Clause on Minimum Amount o subscriptionas speci ed in the Ofer Document will not be applicable or investments ma de through the rst installment o SystematicInvestment /Trans er Plan subject to the ul llment o minimum investment criteria and minimum installment criteria during the opted period through SIP/STP For example,the minimum investment amount or 1st investment in JM Multi Strategy Fund is Rs.5,000/-. However, in case o SIP, an investor can invest with minimum installment amounto Rs.1,000/- or Rs.500/- per month so as to meet the Minimum Investment Amount over the opted period i.e. 6/12 months respectively. The details o the acility are asollows

Minimuminvestmentdetails

The AMC ofers monthly SIP option and quarterly SIP options1. The minimum mandatory installments and the amount per installments are as under:

Amount per Installment (Rupees in whole Numbers) * Minimum Mandatory Installments*Rs. 500 to Rs. 999 per month (For Monthly Frequency) 12 or more out o which 10 installments must be efectedRs. 1000 or more per month (For Monthly Frequency) 6 or more out o which 5 installments must be efectedRs. 3000 or more per quarter (For Quarterly Frequency) 2 or more where atleast 2 installment must be efected

*These conditions are to be ul lled in addition to other conditions.2. No two consecutive SIP installments should ail.3. The minimum subscription amount as per the Ofer Document o the respective scheme/ Plan/Sub-Plan/ Option/ Sub-Option e.g Rs. 5,000/-

should be received by the AMC during the opted period, through the minimum no. o mandatory installments mentioned in the tableabove.

4. A separate orm is required or each SIP date / requency/ Scheme/ Plan/ Sub-Plan/ Option/ Sub-Option. Application orms with multiplechoices will be summarily rejected.

In the event o non- ul llment o the rst 2 criteria cited above, the AMC reserves the right to revert all the previous allotments and reallot the unitsa resh with loads as applicable on the respective due dates by treating them as the normal investments and/or recover the amount o load waivedor all allotments directly rom the investor or by debit to his olio/s maintained with J M Financial Mutual Fund subject to meeting the minimumsubscription amount criteria (a ter taking care o permissible DD charges). In the event o non ul llment o minimum subscription amount criteriao the opted scheme/plan/option, the AMC shall re und the amount without any interest.In the event o not meeting any one or more o the above mentioned criteria, the SIP will stand terminated and the investor will be required tomake a resh SIP applicaton i he is desirous o availing this acility in uture also. The resh application will be subject to the current terms andconditions o the respective scheme/plan/option.

Due dates The investor may opt to start SIP rom any o the ollowing dates : 1st , 5th , 10th , 15th , 20th or 25th o each month. A separate orm is required

or each SIP dates. Choice o multiple dates through single Form is not permitted. In case, an investor wishes to opt or multiple SIP dates in thesame month, he may do so by submitting separate Scheme Application-cum-SIP Forms or each SIP due date with separate set o post datedcheques or Auto Debit orms and A/c. Opening Cheque(s)/Demand Dra t(s). Any single application i received with multiple SIP dates will besummarily rejected and the amount o initial investment re unded i the same is less than the minimum investment limit xed or particularScheme/Plan/Option. The rst investment under SIP has to be made through physical cheque/DD payable locally at the place o submission o theapplication. The rst cheque/DD has to be o any valid date and not a post dated one on the date o submission. Similarly, in case o SIP throughAuto Debit (Direct Debit/ECS), the investor should choose any o the above mentioned six SIP dates. In the event o non-receipt o unds or the rstinvestment/Ist SIP installment itsel , the SIP will automatically be treated as discontinued abinitio. Minimum o 30 days time is required or 2ndinstallment o SIP through Auto Debit (ECS/Direct Debit) to take place a ter the Ist SIP/Initial Investment or each SIP date (i opted or multipledates). The second SIP installment should not all in the same calendar month In case, any particular uture SIP due date alls on a non-business dayor alls during a book closure period, the immediate next business day will be considered or the purpose o NAV application.

Amount All SIP Installments including the rst one are required to be o same amount. For starting an SIP at the time o initial investment itsel , the nvestorhas to ensure that initial investment and remaining uture SIP installments are o same amount.In the event o any o the installment amount being diferent, the AMC will treat all SIP installments as normal investments and these will besubject to normal entry/exit load as applicable on the respective dates o investments. In order to treat such installments as normal investments,the AMC reserves the right to revert and reprocess all previous SIP installments besides discontinuation o SIP or uture intallments or alternativelythe AMC may recover the waived entry load directly rom investor or by redeeming the equivalent units rom the respective olio. In addition, theAMC will also charge exit load (as per applicable rates on the dates o respective SIP installments). In the event o non- ul llment o minimumsubscription criteria o the opted scheme, the AMC shall revert and re und the entire amount without any interest.

Cheques drawnin avour o

The cheques / debit instructions should be in avour o JM Multi Strategy Fund

Applicable NAV During NFO the units under SIP will be allotted on the allotment date o the NFO and there a ter at the NAV o the opted dates.Entry / Exit Load Please re er clause 13 or applicable load structure.Cut of time 3.00 p.m.

Terminationo SIP For discontinuation o SIP through ECS / Direct debit, the unitholder is required to intimate the AMC / Registrar at least 15 Calendar Days prior tothe next installment or the respective due date. However, the AMC/Registrar will try to discontinue the SIP or remaining period on best efortsbasis due to the time and process involved .On such request, SIP will be terminated and the balance post dated cheques will be returned to the investor or the debit instructions given by theinvestor under ECS/Direct Debit will be treated as cancelled.

In the event o an investor wishes to close the SIP account without holding / accumulating / reaching the minimum limit prescribed in the scheme, the AMC reserves theright to redeem all units.The Investment cum SIP Enrolment Form complete in all respects may be submitted at any o the ISCs o JM Financial Mutual Fund. In case o SIP through Auto Debit (i.e.through Direct Debit in selected banks or through ECS in selected cities), an additional orm known as the SIP Auto Debit Registration cum Mandate Form (through DirectDebit/ECS) is also required to be submitted at the time o opting or SIP.The 1st SIP cheque will be considered as Account Opening cheque or existing and new investors. The existing investor may ll-in the existing olio number, Scheme/Plan/Option Name and proceed to ll-up the respective SIP columns o the Common Application Form, i there is no other change required by him in his olio.

To subscribe to SIP, an Investors has to submit the ollowing documents:i. Scheme Application cum SIP Registration Formii. Locally Payable Cheque/DD or Initial Investment cum 1st SIP Installment Amount subject to the minimum amount o Rs. 500/- or 12 months SIP or Rs. 1000/- or 6

months SIP or Rs. 3000/- or the quarterly SIP.iii. Auto Debit (through Direct Debit/ECS) Registration cum Mandate Formiv. A photo copy o the cheque/cancelled cheque rom the same account where uture installments are to be debited i opted or SIP through Auto Debit .The cheque/s should be drawn in avour o the scheme/plan chosen (e.g. JM Multi Strategy Fund) and crossed A/C Payee Onlyand payable locally and drawn on any bank,which is situated at and is a member o the Bankers Clearing House located at the place where the SIP application is submitted. In case o outstation cheques, i accepted bythe AMC, the AMC shall credit the unit holders account with the number o units at the applicable sale price on the day when clear unds are received by the Mutual Fund.However, in all cases, the rst cheque/DD should be payable locally. Returned / Dishonoured cheques will not be presented again or collection. The AMC reserves the right

This Key In ormation Memorandum (KIM) sets orth the i n ormation, which a prospective investor ought to know be ore investing. For urther details o the s cheme/Mutual Fund,due diligence certi cate by the AMC, Key Personnel, investorsrights & services, risk actors, penalties & pending litigations, associate transactions etc. investors should, be oreinvestment, re er to the Ofer Document available ree o cost at any o the Investor Service Centres or distributors or rom the website www.JMFinancialm .comThe Scheme particulars have been prepared in accordance with Securities and Exchange Board o India (Mutual Funds) Regulations 1996, as amended till date, and led withSecurities and Exchange Board o India (SEBI). The units being ofered or public subscription have not been approved or disapproved by SEBI, nor has SEBI certi e d the accuracyor adequacy o this KIM.The date o this Key In ormation Memorandum is 30/07/2008.

NEW FUND OFFER COMMENCES ON : 31/07/2008NEW FUND OFFER CLOSES ON : 29/08/2008SCHEME RE-OPENS FOR CONTINUOUSSALE & REPURCHASE ON OR BEFORE : 28/09/2008

to change the terms o this acility rom time to time.Systematic Investment Plan or corporate employees (will be available only during the post NFO period)The Fund shall dispatch the statement o accounts to the unit holders under SIP once every quarter ending March, June, September and December withinthe end o the respective quarter. However, the rst account statement under SIP shall be issued within 10 working days o the initial investment.However, in case o speci c request received rom investors, the Fund shall provide the account statement to the investors within 5 working days rom the rewithout any charges. Further, so t copy o the account statement shall be mailed to the investors under SIF to their e-ma il address on a monthly basis, i s

4(ii).Systematic Trans er Plan (STP) / Systematic Withdrawal Plan (SWP) will be available only during the post NFO period.4(iii). SIP payment through standing instruction to HDFC Bank Limited will be available only during the post NFO period.5. APPLICABLE NAV FOR PURCHASES & SWITCH-INS/REDEMPTIONS AND SWITCH-OUTS (AFTER THE SCHEME OPENS FOR CONTI For Purchases and Switch-Ins

In respect o valid applications received upto 3 p.m. by the Mutual Fund alongwith a local cheque or a demand dra t payable at par at the place where treceived, the closing NAV o the business day on which application is received shall be applicable. In respect o valid applications received a ter 3 p.malongwith a local cheque or a demand dra t payable at par at the place where the application is received, the closing NAV o the next business day shall be in respect o valid applications with outstation cheques/ demand dra ts not payable at par at the place where the application is received, closing NAV o which cheque/demand dra t is credited shall be applicable.

For Redemptions and Switch-outsRedemption request can be submitted to the o cial point o acceptance on any business day till 3.00 pm. In respect o valid applications received upto 3 pFund, same days closing NAV shall be applicable. In respect o valid applications received a ter 3 p.m. by the Mutual Fund, the closing NAV o the nexapplicable.The Fund will endeavour to dispatch the redemption cheque/dra t within 10 Business Days rom the date on which the redemption transaction is efectedIt is clari ed that the cut of timings will also be applicable to investments made through sweepmode.

6. MINIMUM AMOUNT OF SUBSCRIPTION / REDEMPTION Minimum amount o Rs. 5,000/- per Plan / Option and in multiples o a ny amount therea ter during the New Fund Ofer period, and in case o rst time

ongoing investments in an existing olio the investment would be Rs. 1,000/- and in multiples o any amount therea ter. However, there is no upper limitThe minimum investment is applicable at the respective Plans/Sub-plans/Options/ Sub-options level i.e. Growth, Dividend and will be considered a terpermissible DD charges. Minimum redemption rom existing Unit Accounts would be Rs. 500 or 50 units Any redemption in excess thereo may be in muto keeping minimum balance o Rs. 5000 or 500 units, whichever is less. In the event o remaining balance ( or investment other than through SIP/STPthe minimum balance o 500 units or Rs.5000 (Which ever is less) while processing redemption/switch requests, the entire outstanding units will be rediference in the amount and units mentioned in a ny request or Redemption/ Switch, the lower o the two on rupee equivalent basis on the Transaction/ apwill be considered by the AMC. In the event o investor not having lled in the Amount/ Units in the Transaction Slip, the AMC will redeem/ switch ouunits in case the Scheme, Plan, Option are clearly mentioned.

7. DESPATCH OF REPURCHASE (REDEMPTION) REQUESTAll redemption payments would be in avour o the Unitholders registered name with bank mandate wherever applicable. The Fund will endeavour to dispcheque/dra t within 10 Business Days rom the date o receipt o valid orm or redemption. In case the bank mandate given by the unitholder correspondwhich the Fund / AMC has tie-up acilities / arrangements, the redemption amount will be a utomatically credited to the unitholders bank account unlessgiven some other speci c payment instructions. The Redemption Price will be published in a daily newspaper either through an advertisement or by waon a daily basis. It will be available, however, at the o ce o the AMC on all business days.

8. BENCHMARK INDEXThe per ormance o JM Multi Strategy Fund will be benchmarked against BSE 500

9. DISTRIBUTION OF INCOMEDeclaration o dividends will be subject to availability o distributable pro ts, as computed in accordance with SEBI Regulations, 1996. All distribution o edistributable surplus and at the discretion o the trustee. Such distribution may be by way o bonus units or by way o dividend. Dividends, i declared, wildeduction o tax at source, i any) to those unit holders whose names appear i n the register o unit holders on the noti ed record date. However, in case theto any unitholder is below is Rs. 100/- then the same will be automatically re-invested. The AMC shall dispatch the dividend warrants and/or resh Accthe bonus units to the unitholders within 30 days or such stipulated period o the declaration o dividend/bonus units. In case o Dividend Reinvestment/AMC shall credit the appropriate number o units to unitholders account at the applicable NAV on the same date when the NAV is ex-dividend.On payment o dividends, the NAV will stand reduced by the amount o dividend and dividend tax (i applicable) paid.

10. NAME OF THE FUND MANAGERThe und manager or the Scheme is Mr. Sandip Sabharwal.

11. NAME OF THE TRUSTEE COMPANY JM Financial Trustee Company Private Limited

12. PERFORMANCE OF THE SCHEMEAs JM Multi Strategy Fund is a new scheme, this scheme does not have any per ormance track record.

13. EXPENSES OF THE SCHEMEi) NEW FUND OFFER EXPENSES

The AMC shall endeavour to meet the New Fund Ofer expenses comprising o sales, marketing and such other expenses connected to the sales and distributiothe entry load. In case o any short all, the expenses shall be borne by the AMC / Trustee.

ii) LOAD STRUCTUREThe load structure or the Scheme during and post NFO is given as ollows:

Particulars Entry Load Exit LoadIn case o investments < 2 crores 2.25% 1% i redeemed within 1 year o allotment / trans er o unitsIn case o investments > = Rs. 2 crores Nil 0.5% i redeemed within 3 months o allotment/trans er o unitsIn case o investments made through Systematic Investment Plan Nil 2.25% i redeemed within 2 years o allotment / trans er o unit

instalments.No entry load in case o direct applications: SEBI vide its circular SEBI/IMD/Circ. No. 10/112153/07 dated December 31, 2007 has mandated that no entor direct applications received by the AMC.In accordance with the above, no entry load will be charged or: direct applications received bythe AMC (i.e applications not routed throughany distributor/agent/broker) applications receivedthrough interneton the AMCs website submitted tothe AMC orits ISCs or its Collection CentersThe provision or no entry load is applicable or a dditional purchases (including SIPs) made by the investor directly under the same olio and s witch-in scheme rom other schemes i s uch transaction is done by the investor without routing through any Distributor/Agent/Broker i.e Direct Application.Additional purchases (including SIPs) without broker code will be treated as direct. Any request or any modi cations in the in the existing transaction/throslip should be duly signed by the investor(s) ailing which no cognizance will be taken o such modi cation

NO LOAD ON BONUS UNITS AND UNITS ALLOTTED ON REINVESTMENT OF DIVIDENDIn accordance with SEBI Circular SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008, the AMC shall not charge entry as well as exit load on Bonuson reinvestment o Dividend.

iii) Annual Scheme Recurring ExpensesThe details o recurring expenses o the Scheme, on an annual basis are as under:

JM MULTI STRATEGY FUND Particulars (as a % o Applicable NAV)Investment Management & Advisory Fees 1.25 %Trustee ees 0.05 %Marketing and selling expenses, custodian expenses, Registrar and Trans er Agent ees, audit ees and otherexpenses permitted under Regulation 52(4)(b)

1.20 %

TOTAL 2.50%The above estimates are made based on the minimum subscription (target) amount o Rs. 1 crore. The purpose o the above table is to assist the investothe various costs and expenses that an investor in the Scheme will bear directly or indirectly. While this estimate has been made in good aith on the baavailable with the Fund, there can be no assurance that actual expense, under any particular head will not be more or less than such estimate. The AMCto revise the ees payable to the service providers rom time to time. The total expenses, however, will be maintained within the limits mentioned under RSEBI Regulations.As per the Regulations, the maximum recurring expenses including investment management and advisory ee that can be charged to the Scheme shapercentage limit o weekly net assets as in the table below:

First Rs. 100 crores Next Rs. 300 crores Next Rs. 300 crores For the balance assets2.50% 2.25% 2.00% 1.75%

Subject to the overall ongoing ees and expenses which would be charged to the Scheme not exceeding the limit laid down under Regulation 52(6) [as reprodumay at its discretion charge to the Scheme the Government levies in the orm o any charges or applicable taxes including applicable surcharge either presenmay be imposed in uture. Currently, the Government has imposed Service Tax o 12% on the Management and Trustee Fees and education cess o 2% on Serbe charged to the Scheme subject to the overall expenses charged to the Scheme do not exceed the limits laid down under Regulation 52(6).Further, as and when permitted by SEBI, the AMC may charge a higher ee or that part o the assets which are invested overseas. However, revision inwithin the SEBI Regulations at all times.

14. TAX TREATMENT FOR INVESTORS14.1 TAX BENEFITS

The ollowing tax bene ts are available to investors and the Fund under the present taxation laws. The in ormation set orth below is based on the advicadvisor and is included or general in ormation purposes only. The in ormation set orth below re ects the law and practice as o date o this Ofer Documeholders should be aware that the relevant scal rules or their interpretation may change. There is a possibility that the tax position prevailing at the timein the Scheme can change therea ter. Mutual Fund will pay / deduct taxes as per tax law applicable on relevant date. The investor will have not have anadditional tax liability imposed due to changes in the tax structure in the uture.It may be noted that investors/ unitholders are responsible to pay their own taxes. Investors/ unitholders should consult their own tax adviser with consequences applicable to them or participation in the scheme.

14.1.1 TAX BENEFITS TO THE MUTUAL FUNDJM Financial Mutual Fund is a Mutual Fund registered with the Securities and Exchange Board o India and hence the entire income o the Fund will betax in accordance with the provisions o Section 10(23D) o the Income-tax Act, 1961 (the Act). The Fund is entitled to receive all income without ansource under the provisions o Section 196(iv), o the Act.An equity oriented Fund is not required to pay any Income Distribution Tax u/s 115R o the Act.

14.1.2 TAX BENEFITS TO THE UNITHOLDERSINCOME TAXAs per Section 10(35) o the Act, any income other than capital gain received in respect o units o a mutual und speci ed under Section 10(23D) wiincome-tax in the hands o the unitholders.CAPITAL GAINS TAX

LONG TERM CAPITAL GAINS ON TRANSFER OF UNITSUnder Section 10(38) o the Act, long term capital gains arising on sale o units o equity oriented unds are exempt rom income tax in the hands o UnSTT is charged on such sale by the Mutual Fund.SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITSSection 111A o the Act provides that short-term capital gains arising on sale o units o equity oriented unds are chargeable to income tax at a concesplus applicable surcharge, education cess and secondary and higher education cess as applicable, provided STT is charged on such sa le by the Mutual F48 provides that no deduction shall be allowed in respect o STT paid or the purpose o computing Capital Gains.

CAPITAL LOSSESLosses under the head Capital Gainscannot be set of against income under any other head. Further within the head Capital Gains, long term capitadjusted against short term capital gains. However, short term capital losses can be adjusted against long term capital gains. Under Section 10(38) o thcapital gains arising on sale o units o an equity oriented und are exempt rom Income Tax provided certain conditions are ul lled. Hence, losses arisintransaction o sale o units o Equity Oriented Fund would not be eligible or set-of against taxable capital gains. Unabsorbed short-term ca pital loss canand set of against the income under the head Capital Gains in subsequent eight assessment years. According to Section 94(7) o the I.T. Act, i any perunits within a period o three months prior to the record date xed or declaration o dividend or distribution o income and sells or trans ers the same wnine months rom such record date, then losses arising rom such sale to the extent o income received or receivable on such units, which are exempt unAct, will be ignored or the purpose o computing his income chargeable to tax. Further, Sub-section (8) o Section 94 provides that, where bonus Unitsany person, on the basis o existing units held by such person then the loss on sale o original units shall be ignored or the purpose o computing incomei the original units were acquired within three months prior to the record date xed or receipt o bonus units and sold within nine months rom such recothe loss so ignored shall be considered as cost o acquisition o such bonus units held on the date o sale by such person.TAX DEDUCTION AT SOURCEFOR INCOME IN RESPECT OF UNITS:As per the Proviso to Section 196A(1) o the Act, no tax shall be deducted at source rom any income credited or paid to non-resident unitholders in rmutual und speci ed under Section 10(23D) o the Act. Similarly as per the provisions o Section 194K o the Act, no tax should be withheld or deducany income is credited or paid by a mutual und to a resident unitholders.

FOR CAPITAL GAINa) In respect o Resident Unit holders :No tax is required to be deducted at source on capital gains arising to any resident Unit holder (under section 194K) vide circular no. 715 dated AugustCentral Board or Direct Taxes (CBDT).(b) In respect o Non- Resident Unit holders:As per the provisions o Sec tion 195 o the Act, tax is required to be deducted at source rom the redemption proceeds paid to investors; this withholdingsecurities transaction tax payable, i any, by the investor. Under S ection 195 o the I.T. Act, tax shall be deducted at source in respect o capital gains as In case of non-resident unitholders - Short term capital gains 15% plus surcharge and cess

Long term capital gains Nil In case of fore ign company - Short term capi ta l ga ins 15% plus surcharge and cess

Long term capital gains NilNo tax would be deductible at source rom the capital gains (whether long-term or short-term) arising to an FII on repurchase/redemption o units in vieo Section 196D (2) o the Act.As per circular no. 728 dated October 1995 by CBDT, in the case o a remittance to a country with which a Double Taxation Avoidance Agreement (Dshould be deducted at the rate provided in the Finance Act o the relevant year or at the rate provided in DTAA whichever is more bene cial to the assesSECURITIES TRANSACTION TAXSecurities Transaction Tax (STT) is applicable on transactions o purchase or sale o units o an equity oriented und entered into on a recognized stoco units o an equity oriented und to the Fund. The STT rates as applicable are given in the ollowing table:

Taxable Securities Transaction Rates Payable byPurchase o a unit o an equity oriented und, where - The transaction o such purchase is entered into in a recognised stock exchange;and The contract or the purchase o such unit is settled by the ac tual delivery or trans er o such unit.

0 .1 25 % Pu rc ha se r

Sale o a unit o an equity oriented und, where - The transaction o such sale is entered into in a recognised stock exchange; and Thecontract or the sale o such unit is settled by the actual delivery or trans er o such unit.

0.125% S eller

Sale o a unit o an equity oriented und, where - The transaction o such sale is entered into in a recognised stock exchange; and Thecontract or the sale o such unit is settled otherwise than by the actual delivery or trans er o such unit.

0.025% S eller

Sale o unit o an equity oriented und to the Mutual Fund itsel . 0.25% SellerThe Fund is responsible or collecting the STT rom every person who sells the Unit to it at the rate o 0.25%. The STT collected by the Fund during any



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