JM Basic Fund

Portfolio at a Glance (as on 31 January, 2008)
No of Stocks – 28 No Of Sectors -14 Non Equity Position –4.91%

Scheme Details
Inception : 22nd June, 1997 Fund Manager : Ashit Bhandarkar Benchmark Index : BSE Basic Indu. Index

NAV
as on 31-01-2008 (G) – 31.9567 as on 31-01-2008 (D) – 24.0626

AUM
as on 31-01-2008 – 1311.27Cr.

Top 10 stocks (54.17% of portfolio)
Sintex Indus. – 8.97% Bharti Shipyard – 6.32% Hindustan Const – 5.85% Nagarjuna Cons – 5.38% PSL – 5.28% Voltas – 5.14% Emco – 4.92% Action Cons. – 4.17% Era Cons – 4.16% Kalpataru Power – 3.98%

Stocks Bought During the Month (5) Madhucon Projects, Punj Lloyd, Simplex Projects, Bajaj Hindustan, Balrampur Chini. Stocks Sold During the Month (0)

Dividend History
Till date FY 2007­08 : 81.00% FY 2004­05 : 10.00%  FY 2003­04 : 87.50% FY 2002­03 : 45.00% FY 2000­01 : 182.50% (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/­.)

Performance of JM Basic scheme
As on 26th Feb 2008 (Absolute)
(Rs. cr.) JM Basic Fund AUM 1311.27 NAV 31.66 1 wk 01.40 1mth -06.10 3mth -09.20 6mth 19.20 1 yr 65.90 2 yr 116.10

Index Sensex Nifty
Source : www.moneycontrol.com

1 wk -01.50 -00.20

1mth -01.90 -00.10

3mth -07.50 -08.10

6mth 20.00 22.50

1 yr 30.50 33.70

2 yr 73.20 71.80

Why Contra?
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Contra Our Philosophy

Different Market Scenario: 1. Unwarranted Risk aversion 2. Excessive Volatility 3. Extreme Pessimism 4. High Under ownership

•It is a way of thinking: The contrarian investment theme is often confused with the fundamental or value investing. But it is a fallacy….It involves far more complex thought process. It is a way of thinking which is difficult to emulate •Contra investing is not value investing: When growth investing is contra we are growth investors, when value is contra we go to value •Our contra approach: Our style not just involves picking ‘neglected stocks’ with strong asset values. We focus on high potential under owned sectors. Uncertainties emerge in global events, economic growth, government policy etc. All such events converging today, creating huge opportunity for generating future returns. Thus current environment is apt for contrarian investment

Contra Investing is not Value investing...

Risk Management
Metrics
Portfolio discipline – Long side Portfolio discipline – short side Liquidity Stop loss Review Hard stop loss

Guidelines
No long Position to exceed 9% of fund at cost Maintain at least 20 stocks 25% limit on sector exposures Short positions to be taken after due consideration for liquidity Maximum exposure of 5% of the fund at cost 50% of long positions to be liquidated in 3 trading days For Longs – 20% loss For Shorts – Maximum loss capped at 1% of the NAV

Investment Strategy  ­ Part 1
This is a diversified equity fund which invests in a contrarian manner in equities. Aims to have a first mover advantage by investing into out of favour sectors/stocks thus increasing outperformance prospects Believes in incubating Stocks for a while before they find favour with the rest of the market. Proactively identify new investment themes and build up strong positions before a majority of investors. Monitor stock/sector ownership and relate it to the fundamentals of the sector. Get out of overowned stocks and get into underowned ones. Avoids momentum stocks and overowned sectors, thus improves risk profile

Key is not to get out too early. As such strategy is to try and capture at least 80% of the upmove.

Investment Strategy  ­ Part 2
Aims to use futures and options to implement ‘Shorting strategy’ Use short on index futures to reduce the downside for investors when the markets are euphoric and overextended in terms of fundamentals. Short specific stock futures to generate alpha for investors. Target – Positive returns Pair trades for positive returns – View on a sector may be neutral but one stock likely to outperform the other. Then buy one and sell the other to generate positive returns View on commodities is negative - sell commodity stock and buy user industry stock to generate positive returns All positions to be taken using a combination of fundamental and technical analysis unlike a PE based shorting strategy which is the most prevalent practice because: P/E based shorting strategy does not work as in bull markets P/E expands and in bear market P/E contracts. As such short positions based on P/E will lead to fund being short during bullish markets and long during bear markets.

Contra – Our Target To generate steady returns with low volatility

JM Contra Fund
Portfolio at a Glance (as on 31 January, 2008)
No of Stocks – 28 No Of Sectors -15 Non Equity Position –2.69%

Scheme Details
Inception : 14th Aug, 2007 Fund Manager : Sandeep Sabharwal Benchmark Index : BSE 500 Index

NAV
as on 31-01-2008 (G) – 11.3735 as on 31-01-2008 (D) – 11.3733

AUM
as on 31-01-2008 – 887.10Cr.

Top 10 stocks (61.79% of portfolio)
BRFL – 7.18% Voltas – 7.02% Infosys – 6.98% Maruti – 6.84% Spice Jet – 6.61% Apollo Tyre – 6.00% Satyam – 5.76% Century Textile – 5.34% PSL – 5.03% Jet Airways – 5.03%

Top Five Sector Software – 24.59% Finance – 18.47% Ferrous Metals– 11.71% Transportation– 11.64% Auto– 11.61%

Money Control Rating Fund

JM Emerging Leader Fund
Portfolio at a Glance (as on 31 January, 2008)
No of Stocks – 23 No Of Sectors -13 Non Equity Position –1.79%

Scheme Details
Inception : 27th July, 2005 Fund Manager : Sandeep Sabharwal Benchmark Index : BSE 200 Index

NAV
as on 31-01-2008 – 16.2306 as on 31-01-2008 – 16.2938

AUM
as on 31-01-2008 – 692.16Cr.

Top 10 stocks (54.99% of portfolio)
Rajesh Export – 6.91% XL Telecom – 6.39% Gitanjali Gems – 5.90% Sintex Industries – 5.69% Bombay Rayon Fashions – 5.33% Simplex Project – 5.30% Century Textile – 5.09% Asian Electronics – 4.89% Spice Jet – 4.79% Nagarjuna Cons – 4.70%

Stocks Bought During the Month (2) Rajesh Export, 3i InfoTech. Stocks Sold During the Month (1) Crest Animation Studios.

Fund Strategy
 Typically the outlook will be to invest in companies that can be a multiple of their current size over next 3-5 years.

Early Identification of Leaders  Leads to Supernormal Returns. 

Now Money Control Five Star Rating Fund
Performance of JM Emerging Leader scheme
As on 26th Feb 2008 (Absolute)
(Rs. cr.)
JM Emerging Leader Fund

AUM
692.16

NAV
15.78

1 wk
01.90

1mth
-06.80

3mth
-07.70

6mth
20.10

1 yr
54.60

2 yr
40.20

Index Sensex Nifty
Source : www.moneycontrol.com

1 wk
-01.50 -00.20

1mth
-01.90 -00.10

3mth
-07.50 -08.10

6mth
20.00 22.50

1 yr
30.50 33.70

2 yr
73.20 71.80

Scheme Specifics
Rs. 5000/- and in multiples of Re. 1/- thereafter. For ongoing investment in an existing folio, minimum invest is Rs.1000/- & in multiples of Re. 1/- thereafter. For investing under SIF/STF/SWP option, please refer to the respective scheme Offer Document. 2.25% of NAV on all investments of less than Rs. 3 crores. Nil on all investments of Rs.3 crores and above. Nil for investors under Systematic Investment Facility (SIF) and Systematic Transfer Facility (STF) 0.50% of NAV for investments below Rs. 3 Crores, if redeemed before 1 year from the date of investment. 0.50% of NAV for investments above Rs. 3 Crores, if redeemed before 91 days from the date of investment. 2.25% of NAV on all investments through SIF and STF, if redeemed within 2 year of allotment/transfer. T + 3 working days

Minimum Investment

Entry Load

Exit Load

Redemption

JM Equity Schemes Performance
Fund Compare : Performance View (Value research Diversified) as on 26th Feb 08
1-Month Fund Name JM Basic JM Emerging Leaders JM HI FI JM Equity JM Small & Mid-Cap Reg JM Contra Return (%) -07.09 -06.75 -06.40 -03.67 -06.38 -03.83 6-Month Return (%) 23.28 23.15 24.20 12.75 29.79 1-Year Return (%) 65.59 54.89 40.31 29.29

Fund Compare : Performance View (Value research Others) as on 15th Feb 08
1-Month Fund Name JM Financial Services Fund JM Telecom Sector Return (%) ­08.22 -06.61 6-Month Return (%) 40.91 03.15 1-Year Return (%) 73.30 15.86

About JM Fund Managers
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Mr. Sandip Sabharwal Chief Investment Officer, Equity
Mr Sabharwal has over 11 years' experience in equity research and fund management activities. He was with SBI Funds Management for 10 years and headed the equity fund management team, when he resigned to join Lotus India Asset Management Company Pvt. Ltd. His last assignment was with Lotus India Asset Management Company Pvt. Ltd. where he was responsible for devising strategies for fund management businesses. A B.Tech., PGDM, Mr. Sabharwal is CIO-Equity as well as Fund Manager for JM Emerging Leaders Fund, JM Small & Mid-cap Fund, Contra Fund, JM Agri & Infra Fund, JM Core11.

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Mr. Asit Bhandarkar Fund Manager, Equity
A B.Com.,MMS by qualification, Mr. Bhandarkar has 5 years of experience in equity research and Fund Management. His last assignment was as Fund Manager with Lotus India AMC. Prior to that he was with SBI Funds Management. He also has been an Equity Analyst with broking houses. He manages the JM Basic Fund, JM Auto Sector Fund, JM Healthcare Sector Fund and JM Telecom Sector Fund.

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Mr. Sandeep Neema Fund Manager, Equity
Mr. Neema, a B.E., CFA and MBA-Finance, comes with a vast experience in the field of research at various Research Houses. His last assignment was with Refco-Sify Securities India Pvt. Ltd. as the Deputy Head-Research. He manages the JM Balanced Fund, JM HIFI Fund and JM Financial Services Sector Fund.

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New  Fund Manager

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Mr. Sanjay Chhabaria Fund Manager, Equity
Mr. Chhabaria has over 10 years' experience with organizations like Lotus India Mutual Fund, SBI – Mutual Fund, IDBI Capital Market Services Ltd., SMIFS Securities Ltd and SPFL Securities Ltd. His last assignment was with Lotus India Asset Management Company Pvt. Ltd. He has done his PGDBM in Finance and CFA from ICFAI. He manages the JM Equity Fund, and JM Equity Tax Saver Fund.

Past performance may or may not sustain in future. Mutual Fund Investments are subject to market risks. Please  read the offer documents carefully before investing. Presentation for internal circulation only.

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