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KJMC MUTUAL FUND

 

DRAFT OFFER DOCUMENT

 

Issue of Units of Rs.10/- each for Cash at par

 

Horizon Growth Fund                          Horizon Income Fund

 

                 Type of Schemes                                 :         Open ended Growth Scheme 

                                                                Open ended Income Scheme      

                

                 Classes of Units offered for sale        :       Ordinary                                               

 

Initial Offer Opens on :_______

Initial Offer Closes on:_______

Earliest closing date :________

 

Available at NAV related Price from:      …………..

 

 

Investment Manager :                  CORPORATE OFFICE: 1201-02, Maker Chambers V,  12th Floor,

KJMC Asset Management                                                Nariman Point, MUMBAI-400021

Company Ltd                                 PHONE NO.                   : 2349376 / 77/ 78

 

SPONSOR

 

TRUSTEES

 

ASSET MANAGEMENT COMPANY

KJMC Financial Services Ltd.

 

KJMC Investment Trust Co. Ltd.

 

KJMC Asset Management Co. Ltd.

16th floor, Atlanta

Nariman Point

Mumbai 400 021

 

221, Hans Bhavan,

BSZ Marg,

New Delhi – 110 002

 

221, Hans Bhavan,

BSZ Marg,

New Delhi – 110 002

This Offer Document sets forth concisely the information about the Scheme(s) that a prospective investor ought to know before investing. Prospective investors are advised to retain the Offer Document for future reference.

 

The particulars of the Scheme(s) have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (the Regulations) as amended till date, and filed with the Securities & Exchange Board of India (SEBI). The Units being offered for public subscription have not been approved or disapproved by  SEBI nor has  SEBI certified the accuracy or adequacy of the Offer Document.

This Offer Document will remain effective till a "Material Change" (other than a change in fundamental attributes and within the purview of the Offer Document) occurs and thereafter the changes shall be filed and circulated to the Unit holders along with the quarterly/half yearly reports.

SPONSOR

 

KJMC FINANCIAL SERVICES LTD

168, Atlanta, 16th floor,

Nariman Point,

Mumbai – 400 021.

 

TRUSTEE

 

KJMC INVESTMENT TRUST COMPANY LTD

221, Hans Bhavan,

Bahadur Shah Zafar Marg,

New Delhi – 110 002.

 

ASSET MANAGEMENT COMPANY

 

Registered Office:

 

KJMC ASSET MANAGEMENT CO. LTD

221, Hans Bhavan,

Bahadur Shah Zafar Marg,

New Delhi – 110 002.

 

 

Corporate Office :

 

KJMC ASSET MANAGEMENT CO. LTD

1201-02, Maker Chambers V,12th Floor,

Nariman Point, Mumbai – 400 021.

 

REGISTRAR AND TRANSFER AGENT

 

COMPUTER AGE MANAGEMENT SERVICES (PRIVATE) LTD

A & B, Lakshmi Bhawan,

609, Anna Salai,

Chennai – 600 006.

 

CUSTODIAN

 

HDFC BANK LIMITED

Sandoz House,

Dr. Annie Besant Road,

Worli,,

Mumbai – 400 018.

 

STATUTORY AUDITORS TO THE SCHEME

 

K.S.AIYAR & CO

4th Floor, Janmabhoomi Bhavan,

24-26, Janmabhoomi Marg,

Fort, Mumbai – 400 001.

 

 

LEGAL ADVISORS

 

Malvi Ranchoddas & Co,

Yusuf Builidng, 3rd Floor,

Mahatma Gandhi Road,

Mumbai – 400 023.

 

 

 

I N D E X

 

 

 

Table of Contents

 

Page No.

1.
Definitions & Abbreviations

2

2.

Risk Factors

5

3.
Highlights

7

4.

Due Diligence Certificate

8

SECTION-I

 

 

5.
Summary of Horizon Growth Fund

10

6.

Summary of Horizon Income Fund

11

 

 

 

7.
Constitution of the KJMC Mutual Fund

 

 

a)

 

Sponsor

13

b)

 

The Trustee

14

 

(i)

Board of the Directors of the Trustee Company

15

 

(ii)

Rights, Obligations, Responsibilities and Duties of the Trustee under the Trust Deed and the Regulations

17

 

(iii)

Exercise of Due Diligence by the Trustee

20

 

(iv)

Trustee Fees

22

c)

 

Asset Management Company

22

 

(i)

Powers, Duties and Responsibilities of the Asset Management Company

22

 

(ii)

AMC Board of Directors

24

 

(iii)

Asset Management Fees

25

 

(iv)

Key Personnel of AMC and relevant experience

26

d)

 

Custodian

27

e)

 

Fund Accounting Services

28

f)

 

Significant Business Management Services

29

g)

 

Statutory Auditor

29

h)

 

Registrar and Transfer Agents

29

i)

 

Units with Depository

29

j)

 

Collecting Banks

29

 

SECTION –II.

 

8.

 Investment  Objectives and Policies.

 

 

 

 

a)

Horizon Growth Fund

 

 

(i)

Fundamental Attributes of the Scheme

31

 

(ii)

Change in Investment Pattern

32

 

(iii)

Terms of the Scheme

32

 

(iv)

Changes in Fundamental Attributes

34

 

(v)

Investment Strategy & Risk Control

34

 

(vi)

Investment Policies & Procedure

36

 

 

(vii)

Trading in Derivatives

36

 

(viii)

Portfolio Turnover

 

39

b)

Horizon Income Fund

 

 

(i)

Fundamental Attributes of the Scheme

40

 

(ii)

Changes in Investment Pattern

40

 

(iii)

Debt Market in India

41

 

(iv)

Terms of the Scheme

41

 

(v)

Changes in Fundamental Attributes

43

 

(vi)

Investment Strategy & Risk Control

43

 

(vii)

Investment policies and procedures

44

 

(viii)

Trading in Derivatives

46

 

(ix)

Portfolio Turnover

48

 

(x)

Investment in Illiquid Securities

49

 

 

c)

 

Investment of Subscription Money

49

d)

 

Restrictions on Investments

50

e)

 
Investment in the Scheme by Sponsors/AMC/Associates

52

f)