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JP Morgan - ValueNotes Investment Confidence, Wave VIII, July 2011

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					J.P. Morgan Asset Management – ValueNotes
Investment Confidence Index – Wave VIII, July 2011
          …India‟s only Investor and Advisor focused sentiment indicator




           J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 J.P. Morgan Asset Management – ValueNotes Investment Confidence Index


                        Background

                        Introduction to the indices

                        Survey methodology

                        Respondent profile

                        Investor and advisor confidence – Key findings

                        Investment activity – Retail investors and corporate treasuries

                        Other sentiment influencers




                                                                                                         1
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Background


                        The inaugural Investor Confidence Index was launched in the UK in the early 1990s

                        Subsequently launched in Germany, France and other European countries

                        In Asia, similar Investor Confidence Indices launched by the firm in Hong Kong, Japan and Taiwan

                        The Hong Kong Investor Confidence Index has just completed its 20th wave (2Q 2011) and continues to evoke
                         much interest

                        The J.P. Morgan Asset Management – ValueNotes Investment Confidence Index (ICI) was launched in India in
                         July 2009




                                                                                                         2
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                J.P. Morgan Asset Management – ValueNotes
                Investment Confidence Index


                        The definitive indicator of investment confidence levels across key investment centers

                        Focused on three important investor segments: retail investors, corporates and the advisor community
                         (distributors)

                        Key objectives
                         –      To quantify confidence in the investment environment
                         –      To study investment behavior and sentiment over time based on key factors
                         –      To evaluate trends in such behavior
                         –      To study short-term and long-term changes in investment outlook




                                                                                                         3
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Quarterly indices tracking sentiment across the investment community


                        Investment Confidence Index: A composite index reflecting the combined sentiment of retail investors,
                         corporates and distributors

                        Retail Investor Confidence Index: Based on a survey of retail investors across India

                        Corporate Investor Confidence Index: Based on a survey of corporate treasuries across India

                        Advisor Confidence Index: Based on a survey of distributors of financial products
                         –      Banks, National/Regional Distributors (N/RDs) and Independent Financial Advisors (IFAs)




                                                                                                         4
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Survey Methodology: face to face, online and telephonic interviews


                          Screener questions capture respondent profile

                          Six „index‟ questions - capture respondents‟ confidence, over the next six
                                                                                                                                                          Delhi
                           months
                          1) Improvement in the Indian economic situation
                                                                                                                                                     Ahmedabad          Kolkata
                          2) Improvement in the general investment market environment and atmosphere
                          3) Improvement in the global economic situation                                                                  Mumbai      Pune

                          4) Increase in the BSE Sensex                                                                                               Hyderabad

                          5) Appreciation in personal/clients‟ investment portfolio                                                                   Bengaluru
                                                                                                                                                                    Chennai
                          6) Increase in personal/clients‟ investments


                          Other sentiment drivers




                                                                                                         5
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Index Construction Methodology
                Indices constructed in a similar manner from the six “Index” questions posed to all

                         Each Index question assigned a point between 0 and 200


                        Extremely Unlikely                Somewhat Unlikely             More or Less the Same as Current                 Somewhat Likely            Extremely Likely



                                 0                                50                                    100                                     150                         200




                         All six Index questions carry equal weight

                         Investment Confidence Index equally weights retail, corporate and advisor indices


                         Advisor Confidence Index equally weights the Bank Confidence Index, N/RD Confidence Index and the IFA
                          Confidence Index




                                                                                                         6
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Respondent Sample – Wave VIII, July 2011
                        92.4% of retail investors invested in stocks and/or mutual funds over the last 12 months


                                                                                                                 IFAs             Banks              NRDs
                                               Category                      Retail        Corporate
                                                                                                              (Advisors)        (Advisors)         (Advisors)

                             Number of respondents                           1,623              50                309                 20                20


                                  City                    Delhi / NCR    Mumbai          Kolkata          Chennai         Bengaluru           Pune        Hyderabad           Ahmedabad
                                Retail                       14%             13%            12%             12%               12%             13%              12%              12%
                                  IFAs                       12%             17%            12%             12%               14%             11%              12%              10%
                          Corporate                          18%             34%             4%              4%               6%              26%              4%                4%


                              Wallet Size
                                                              2 to 5 lakhs      5 to 10 lakhs        10 to 25 lakhs 25 to 50 lakhs              50 lakhs +
                                (INR)
                                      Retail                       27%                33%                 25%                  10%                  5%

                           Treasury size                     10 lakhs to 1       1 crore to 50         50 to 150           150 to 500
                                                                                                                                               500 crores +
                               (INR)                             crore              crores              crores               crores
                                 Corporate                         4%                 18%                  24%                 18%                  36%




                                                                                                                   7
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Investor and Advisor Confidence, Wave VIII, July 2011
- Key Findings




                                                             8
              J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Investment Confidence Index (ICI) touches its lowest
                        Investment Confidence Index score stands at 123.8, falling 8.5 points from last quarter

                        Continuous fall in confidence level indicates increasing cautiousness within the Indian financial community

                  Investment Confidence Index

                    Jul 2009                                                                                                                    135.9


                 Sep 2009                                                                                                                          146.4


                 Feb 2010                                                                                                                            141.2


                  Jun 2010                                                                                                                         140.4


                 Sep 2010                                                                                                                               145.4


                 Dec 2010                                                                                                                             146.3


                 Mar 2011                                                                                                                       132.3


                    Jul 2011                                                                                                                 123.8

                                   0                              50                                     100                                 150                         200
                                 Extremely Unlikely          Somewhat Unlikely              More or Less the Same as Current               Somewhat Likely          Extremely Likely




                                                                                                         9
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Corporates most sceptical of the lot
                        Confidence across all categories heads south; optimism within India Inc. drops 15 points
               Retail vs. Corporate vs. Advisors
                                                                                            Neutral
                                                                                                                                       138
                                                                                                                                               145
                                                                                                                                                 147
                                                                                                                                                          152
                             Retail                                                                                                                              160           Jul 2009
                                                                                                                                                                159
                                                                                                                                             142                               Sep 2009
                                                             Retail confidence lowest in July 2011                                     137
                                                                                                                                                                               Feb 2010
                                                                                                                                 134
                                                                                                                                             142                               Jun 2010
                                                                                                                              131
                                                                                                                                 134                                           Sep 2010
                   Corporate
                                                                                                                               132
                                                                                                                               132                                             Dec 2010
                                                                                                                       124
                                                          Corporate confidence lowest in March 109
                                                                                                2011                                                                           Mar 2011
                                                                                                                                     136                                       Jul 2011
                                                                                                                                                         152
                                                                                                                                                   146
                                                                                                                                     135
                        Advisor                                                                                                               144
                                                                                                                                                147
                                                                                                                               131
                                                                                                                        125

                                        50                                                   100                                                    150                                   200
                         Somewhat Unlikely                                     More or Less the Same as Current                            Somewhat Likely                    Extremely Likely




                                                                                                                  10
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Domestic and global economic woes dent confidence across the board
                        Optimism over global economic environment falters dramatically within India Inc. (82)

                        Advisors (153) more upbeat about increase in investments than retail investors (139)
                                                                                                             Neutral

                                                                                                                                                         139
                                                Improvement in Indian
                                                                                                                         104
                                                 economic situation
                                                                                                                                     120
                                                                                                                                                   135
                       Improvement in investment market
                                                                                                                               110
                         environment and atmosphere                                                                                                                             Retail
                                                                                                                                     119
                                                                                                                                                   134
                                             Improvement in global
                                                                                                    82                                                                          Corporate
                                             economic environment
                                                                                                             93
                                                                                                                                                         140
                                                                                                                                                                                Advisor
                                           Increase in BSE Sensex                                                       102
                                                                                                                                           126
                                                                                                                                                        138
                                                      Appreciation in
                                                                                                                                                 131
                                                    investment portfolio
                                                                                                                                                        138
                                                                                                                                                         139
                                                      Change in amount
                                                                                                                                           125
                                                        of investments
                                                                                                                                                                     153

                                                                           50                                     100                                          150                          200
                                                           Somewhat Unlikely                 More or Less the Same as Current                          Somewhat Likely           Extremely Likely



                                                                                                                    11
                                                                      J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Advisor sentiment shaken across all categories; Banks least confident
                        Bank confidence hurt the most, falls 15 points since March 2011

                       IFAs vs. Banks vs. N/RDs
                                                                                 Neutral
                                                                                                                            134.9
                                                                                                                                            150.2
                                                                                                                                        145.7
                                                                                                                                139.7
                             IFA
                                                                                                                                                    156.9
                                                                                                                                                                        Jul 2009
                                                                                                                                         146.9
                                                                                                                               139.0
                                                                                                                                                                        Sep 2009
                                                                                                                             136.5
                                                                                                                                                                        Feb 2010
                                                                                                                              137.9
                                                                                                                                                    157.5               Jun 2010
                                                                                                                                           149.6
                       Banks                                                                                                 139.6                                      Sep 2010
                                                                                                                         135.0
                                                                                                                                         147.5                          Dec 2010
                                                                                                                    129.6
                                                                                                     114.6                                                              Mar 2011
                                                                                                                         135.0                                          Jul 2011
                                                                                                                                        147.2
                                                                                                                                    142.5
                                                                                                                 126.9
                       N/RDs                                                                                                    140.4
                                                                                                                                         147.2
                                                                                                                125.8
                                                                                                              123.8

                                    50                                              100                                                  150                                       200
                  Extremely Unlikely                      Somewhat Unlikely                More or Less the Same as Current                Somewhat Likely           Extremely Likely




                                                                                                         12
                                                           J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Advisors hopeful that clients’ investments will appreciate
                    IFAs (159 points) expect higher client inflows. Banks (75 points) most pessimistic about global economic
                     environment.
                                                                                                            Neutral
                                                      Improvement in Indian                                                                    134
                                                                                                                    103
                                                        economic situation
                                                                                                                                       123
                                                                                                                                              133
                             Improvement in investment market
                                                                                                                      105
                               environment and atmosphere                                                                        120
                                                                                                                          108                                             IFA
                                                   Improvement in global
                                                                                                 75
                                                   economic environment
                                                                                                               98
                                                                                                                                                                          Banks
                                                                                                                                                         140
                                                 Increase in BSE Sensex                                                         110
                                                                                                                                                                          N/RD's
                                                                                                                                        128
                                                                                                                                                       144
                                                            Appreciation in
                                                                                                                                                     140
                                                          investment portfolio
                                                                                                                                             130
                                                                                                                                                                   159
                                                           Change in amount
                                                                                                                                                                 155
                                                             of investments                                                                               145

                                                                                                                                                   136
                                              Advisor Confidence Index                                                          115
                                                                                                                                      124

                                                                                 50                           100                                          150                     200
                                                                      Somewhat Unlikely        More or Less the Same as Current                     Somewhat Likely      Extremely Likely




                                                                                                                       13
                                                                         J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Investment activity in Mutual funds jumps significantly
                          Investment activity in Mutual Funds (61%) improves significantly (11 percentage points) since March 2011.

                          Instruments with most activity such as Time Deposits (42%), and Stocks (64%) witness a marginal rise this
                           quarter compared to March 2011 levels
               Retail investment activity in the past 12 months
                    100%                 92% 95% 89%                                                                                                            Sep 2010            Dec 2010
                                                              82%                                                                                               Mar 2011            Jul 2011
                      80%                                                                          69%
                                                                          52% 54%                     56% 58% 59%
                      60%
                                                                                          42%
                      40%                                                           37%                                     35% 35%                       36% 36%
                                                                                                                                                29%                  27% 25%
                                                                                                                                        22%
                      20%                                                                                                                                                           5%    7% 9%         9%
                         0%
                                              Savings account               Time deposit         Insurance and Retirement           Property              Gold and other bullion     Foreign currencies
                                                                                                         products
                    100%
                       80%                76%
                                             68%                          66%
                                                61% 64%             60%          61%
                       60%                                                   50%
                       40%
                                                                                                 23%19% 22%                    20%                               18%
                                                                                           18%                  12% 13%16%                                             12%13% 12%
                       20%                                                                                                              3% 4% 2% 4%                                      1% 2%    1%    1%
                          0%
                                                     Stocks          Mutual Funds                Bonds             Certificate of              Warrants              Derivatives*              Others
                                                                                                                    deposits

                     * Other stock market derivative products (e.g. futures, options)




                                                                                                                  14
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Delhi/ NCR investors buck the trend; most confident amongst other cities
                        IFAs in Bengaluru and Ahmedabad most optimistic (141) across all cities

                        Investor confidence in Bengaluru (127) records biggest dip (20 points) since last quarter


                     200             Retail confidence (Sep 2010) -160.1 Retail confidence (Dec 2010) - 159.5                                                     Retail (Sep 2010)             Retail (Dec 2010)
                                     Retail confidence (Mar 2011) - 142.0 Retail confidence (Jul 2011) - 137.5                                                    Retail (Mar 2011)             Retail (Jul 2011)
                                                                                               169                                                      176                                      168
                                        165                                                                                                                             163
                                    159          158 163 165                                        162                     156                                               152                      160
                     160                     151                           151 149                       152                      147 147         152                                                     150
                                                                                                             144                                              136 136               135                            138
                                                                    135             133 138
                                                               130                                                                          127                                           126
                     120


                       80
                                         Delhi / NCR                 Mumbai              Kolkata            Chennai           Bengaluru                  Pune              Hyderabad                Ahmedabad

                     200            IFA confidence (Sep 2010) - 156.9              IFA confidence (Dec 2010) - 146.9                                            IFA (Sep 2010)                  IFA (Dec 2010)
                                    IFA confidence (Mar 2011) - 139.0             IFA confidence (Jul 2011) - 136.5                                             IFA (Mar 2011)                  IFA (Jul 2011)
                                             159                                                         166                                                                                     162
                                                                  156 154                                                   158 152               157 152               156
                     160            150               145                 146         150                     146 150 140                   141                                                        146         141
                                                            139                           139                                                                 137 135               139 137
                                                                              130             130 132                                 131                                                                    133
                                                                                                                                                                              126
                     120


                       80
                                         Delhi / NCR                 Mumbai              Kolkata            Chennai           Bengaluru                  Pune              Hyderabad                Ahmedabad




                                                                                                                    15
                                                                      J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Confidence revives among older investors
                           Confidence among investors aged 55 to 60 years and aged 60 to 65 years records sharp rebound of 10 points
                            and 15 points, respectively, since March 2011

                           Confidence among middle aged investors (40 – 45 years) drops 11 points over March 2011

                       180                 Retail Confidence (Dec 2010) - 159.5 Retail Confidence (Sep 2010) - 160.1
                                                                                                                                                                Sep 2010    Dec 2010      Mar 2011    Jul 2011
                                           Retail Confidence (Jul 2011) - 137.5 Retail Confidence (Mar 2011) - 142.0

                       170
                                                              162164
                                     159 161                                   159 160         161                 160               161
                       160                                                                           157                 157                                  157
                                                                                                                                         153            155                                   155
                                                                                                                                                                           153151
                                                                                                                           149
                       150
                                                                       142            143              143
                                                                                                             140                                                                                    140
                                                     140                                                                                          140
                       140                              139                                                                    138          138                                                             139
                                                                         136             137                                                                    136
                                                                                                                                                                                       135
                                                                                                                                                                    130
                       130
                                                                                                                                                                                  125                 124

                       120
                                     Age 22 to 25             Age 25 to 30     Age 30 to 35    Age 35 to 40        Age 40 to 45      Age 45 to 50       Age 50 to 55       Age 55 to 60       Age 60 to 65




                                                                                                                  16
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Banking and Financial Services a popular sector for investment
                        Retail investors (36%) and advisors (56%) vote for investing in the Banking and Financial Services sector

                        FMCG and IT & ITES sectors runners-up for advisors (38%) and retail investors (27%) respectively.



                     60%                                                                                                                                         Retail              Advisor
                                                                      56%

                     50%

                                                                                                        38%
                     40%
                                                               36%

                     30%                                                                                                           27%
                                                                                                                  25%
                                         23%                                                     24%
                                                                                                                                                    21%
                     20%                                                         18%
                                                                                       15%
                                                                                                                                                                                               12%
                                                                                                                         10%              12%                                  11%
                     10%                                                                                                                                                                7%
                                                                                                                                                          6%
                                                          4%
                                                                                                                                                                          2%
                        0%
                                        Automobiles            Banking and     Capital Goods        FMCG           Oil and gas       IT & ITES        Telecom             Others        Don‟t know/
                                                                Financial                                                                                                                refused to
                                                                Services                                                                                                                   answer




                                                                                                                   17
                                                                     J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Current investor strategy – Be cautious
                          Current investment strategy for most retail investors is to preserve capital (40%) and to maintain a cautious
                           outlook towards their investments (35%)

                          Investors expected to turn more aggressive (54%) with their investment strategies in the next six months

               Current investment strategy                                                                           Investment strategy in coming 6 months


                                                                                                                                         3%
                                                          10%                                                                 12%                  14%
                                                                 15%
                                                                                   Risk Averse                                                                       Extremely aggressive


                                                                                                                                                                     Somewhat aggressive
                                                                                   Preserve Capital

                                                                                                                                                                     No change
                                                                                   Cautious
                             35%                                                   Investments
                                                                                                                                                                     Somewhat conservative

                                                                                   Willing to take risks                  31%                            40%
                                                                    40%                                                                                              Extremely conservative




                                                                                                              18
                                                                J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Corporate activity in Mutual Funds takes a drubbing
                        Instruments with most activity such as Debt Mutual Funds, Stocks and Bonds witness a significant drop this
                         quarter compared to December 2010 levels

                        Debt Mutual Funds (74%) and Stocks (18%) take a beating of 18 and 28 percentage points, respectively

              Corporate investment activity in the past 12 months
                                                                                                                                  94% 90% 92%                             Sep 2010           Dec 2010
                      100%                                                                                                                                                Mar 2011           Jul 2011
                        80%                                     74%                                                                                    74%
                                                      67%             70%
                        60%                56%
                                                                                      43%                       47% 44%                                                                     45% 46%
                                                                                            32%           32%                                                      37% 38%
                        40%                                                    30%                                          30%                                               26%
                                                                                                  22%                                                        24%                      26%
                                                                                                                                                                                                        18%
                        20%
                           0%
                                                  Term deposits                Inter-corporate deposits   Commercial Papers         Debt Mutual Funds        Equity Mutual Funds             Stocks
                     100%

                        80%
                                                          59%
                        60%                                     48%                   45%
                        40%                                           34%                   38%
                                           30%                                  28%
                                                                                                  22%           24%                     25%
                        20%                                                                                           16%                                          14%                8%
                                                                                                          8%                4%     6%         10%      4%    4%          6%                             4%
                                                                                                                                                                              2%            0% 2%
                           0%
                                                          Bonds                Certificate of deposits          Warrants                Derivatives*         Structured products             Others

                     * Other stock market derivative products (e.g. futures, options)




                                                                                                                          19
                                                                            J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                MMFs still preferred while FMPs lose favour
                        Fixed Maturity Plans (36%) down 24 percentage points this quarter and 33 percentage points since 6 months

                        Bond Funds (20%), Floating Rate Debt Funds (14%), GILT Funds (8%) drop this quarter by 26/26/24 percentage
                         points respectively


                     Corporate investments in debt mutual funds in the past 12 months
                   100%
                                                                                                                                                  Sep 2010       Dec 2010       Mar 2011       Jul 2011
                      90%                                               88%         86% 84%

                      80%
                                                                              67%                       69%
                      70%
                                                                                                              60%
                      60%                                                                         54%
                      50%                                 46%
                                                                                                                                 39% 40%
                      40%                           35%                                                             36%    34%
                                        32%                                                                                                                      32%
                      30%                                                                                                                                  25%
                                                                20%                                                                                  20%
                      20%                                                                                                                  14%                                   12%
                                                                                                                                                                        8%
                      10%
                                                                                                                                                                                       0% 0% 0%
                        0%
                                                   Bond funds               Money Market              Fixed Maturity           Floating Rate               GILT funds                      Others
                                                                               Funds                      Plans                 Debt Funds




                                                                                                                    20
                                                                      J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Corporates likely to maintain current investment levels in liquid funds

                        Despite RBI‟s regulation on limiting banks‟ exposure in liquid funds to 10% (of the previous year‟s networth),
                         50% are corporates likely to maintain current investment amount in liquid funds prior its implementation (i.e
                         January 2012)

                        However, 28% of corporates expected to increase liquid funds investments before implementation of the
                         regulation


                                                                                 10%            10%                  Definitely will increase
                                                                                                         18%
                                                                        12%                                          Somewhat likely to
                                                                                                                     increase
                                                                                                                     Maintain the current
                                                                                                                     investment amount
                                                                                                                     Somewhat likely to
                                                                                                                     decrease
                                                                                                                     Definitely will decrease

                                                                              50%




                                                                                                        21
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Majority advisors consider ‘3 – 5 years’ as long-term
                       Long term investments for corporates is a shorter time span compared to advisors and retail investors; 48%
                        corporate interpret 1 - 3 years as long term whereas, 32% interpret 3 – 5 years

                       Advisors (47%) and retail investors (29%) interpret long term investment period to be between 3 and 5 years
                     60%
                                                                                                                         Retail               Corporate                Advisor


                     50%                                                                                                   47%


                     40%

                                                                                                                     32%
                                                                          28%                                 29%
                     30%
                                                                                         24%         25%
                                                                                               20%                                  20%         19%
                     20%
                                                                    13%
                                                                                                                                          12%
                     10%                                                                                                                                  8%
                                                          6%                    4%
                                                                                                                                                                       4%        3%
                                          2%                   0%                                                                                                                      2%
                                                                                                                                                                 0%                           0%
                        0%
                                         Less than 1 year           1 year – 2 years     2 years – 3 years     3 years – 5 years    5 years – 10 years      Over 10 years             Can't Say




                                                                                                                  22
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Financial community expects higher ROI from equity funds over long-term
                        A majority of advisors (45%), retail (39%) and corporates (36%) expect an annual return of 10 – 15% from
                         equity funds with an investment horizon of more than three years

                        A sizeable percentage of advisors (36%), retail investors (19%) and corporate (38%) are expecting a higher
                         return of 15 – 12%
                     60%
                                                                                                                               Retail                Corporate               Advisor


                     50%
                                                                                                                  45%

                                                                                                     39%                                38%
                     40%
                                                                                                            36%                                36%


                     30%
                                                                           24%
                                                                                                                              19%
                     20%

                                                                                                                                                                       11%               12%
                                                                                                                                                                 10%
                     10%                                                                                                                                7%                                         7%
                                           7%
                                                                                   4%      2%                                                                                     3%
                                                           0%      0%
                        0%
                                                          0 - 5%                 5 - 10%                   10 - 15%                 15 - 20%                 Above 20%                 Can't Say




                                                                                                                      23
                                                                        J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Other sentiment drivers
- Sensex, economic signals, expectations on income




                                                            24
              J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Sensex likely to trade between 19,000 – 21,000 in Dec’ 2011
                        Retail investors (48%) and advisors (58%) expect BSE Sensex to hover between 19,000 and 21,000 in Dec‟
                         2011.

                        Advisors (37%) and retail investors (26%) were highly optimistic about the Sensex levels in March 2011,
                         indicating it will trade between 20,000 – 21,000. However, it traded between 17,800 – 19,200
             Advisors more confident of BSE Sensex trading at higher levels in December 2011
                                                                                                                                                                             Retail             Advisor
                     45%                                                                         BSE Sensex
                     35%                                                                          during the
                                                                                                   Survey              23%       35%
                     25%                                                                                                           25%
                                                                                                                      23%                        19%
                     15%                                                                                15%                                                 10%
                                                               0% 3%                        5%                12%
                       5%             0%                                           2%                                                            10%       7%           2%           1%              1%
                      -5%             0%                    1%          1%          0%      4%                                                                                                       1%
                                                                                                                                                                       0%            0%
                                      0- 14000            14000 -    15000 -     16000 -    17000 -      18000 -      19000 -    20000 -     21000 -       22000 -   23000 -       24000 -      25000 -
                                                           15000      16000       17000      18000        19000        20000      21000       22000         23000     24000         25000        26000
               Investors and advisors optimistic about Sensex in June 2011; Majority proved incorrect
                       35%                                                              BSE                                                                                    Retail           Advisor
                                                                                                                      29%
                                                              BSE Sensex              Sensex in
                       25%                                                            December          27%     23%      23%
                                                              in June 2011
                                                                                        2010                                               21%
                       15%                                                                  22%                                    11%
                                                                                           10%                                                      4%
                                                                       3%              6%                                                                       5%                      1%
                          5%                                    1%                                                                                                                                   2%
                                        1%                                                                                                                   4%
                                        1%                                      1%                                                                4%                 0% 1%                           0%
                                                              0%        1%                                                                                                              0%
                        -5%
                                        0- 17000          17000 -     18000 -     19000 -     20000 -     21000 -      22000 -   23000 -         24000 -   25000 -   26000 -          27000 -   28000 and
                                                           18000       19000       20000       21000       22000        23000     24000           25000     26000     27000            28000      above




                                                                                                                   25
                                                                     J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 GDP growth – Most positive economic booster
                       Advisors (31%) are most optimistic on GDP growth compared to retail investors (23%) and corporates (20%)

                       Corporates (18%) consider RBI measures as the second most positive indicator along with retail investors
                        (20%) and advisors (23%)

                     60%
                                                                                                                                                    Retail          Corporate      Advisors

                     50%


                     40%

                                                                             31%
                     30%
                                                                 23%                            23%
                                                                       20%          20%
                     20%                                                                  18%
                                                          15%                                                16%
                                                                                                       14%
                                                                                                                                                                      13%
                                       11% 12%                                                                            10% 10%                   10%                     10% 11%
                     10%                                                                                                                                     8%
                                                                                                                                               7%
                                                                                                                   4%                                                                           4%      5%
                                                                                                                                      2%                                                  1%
                        0%
                                       Good corporate             GDP growth        RBI‟s continued      Increase in      Increased credit       Increase in        Government's fiscal        Others
                                          results               meeting/exceeding     monetary          employment         offtake from the   Industrial output /       measures
                                                                  expectations        measures          opportunities       private sector         Exports




                                                                                                                   26
                                                                     J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 GDP growth holds traction through the year
                       Outlook over GDP growth gathers steam over the year especially among retail investors. 23% investors vote
                        GDP growth as a positive indicator in July 2011 as against 16% in September 2010

                       Retail investor outlook towards corporate results (11%) falls 14 percentage points over the year
                                                                        July 2011                                                                         March 2011
                    60%                                                                                                 60%                                 Retail     Corporate     Advisors
                                                                                                                                                                     46%
                    40%                                                             31%                                 40%
                                                                     23%                                                                                    25%            26%
                                                                             20%             20% 18% 23%                                       24%
                                                                                                                                                                                     19%            21%
                    20%                         15%                                                                               15%
                                        11% 12%                                                                         20%                                                                   12%
                                                                                                                                         4%
                       0%                                                                                                 0%
                                    Good corporate results             GDP growth            RBI‟s continued                    Good corporate results        GDP growth             RBI‟s continued
                                                                     meeting/exceeding      monetary measures                                               meeting/exceeding       monetary measures
                                                                       expectations                                                                           expectations

                                                                    December 2010                                                                        September 2010

                        60%                                                   53%                                        60%                               Retail     Corporate    Advisors
                                                                                     49%
                                                                                                                                                                     34%   37%
                        40%                                                                                              40%
                                                                                                                                  25%
                                            19%                        20%                    17%                                                           16%                               16%
                                                                                                                         20%             14%                                         13%
                        20%                               12% 14%                                                                               11%                                                 7%
                                                                                                     6%     6%
                           0%                                                                                             0%
                                        Good corporate results          GDP growth             RBI‟s continued                   Good corporate results       GDP growth             RBI‟s continued
                                                                      meeting/exceeding       monetary measures                                             meeting/exceeding       monetary measures
                                                                        expectations                                                                          expectations




                                                                                                                  27
                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Inflation and corruption create jitters within the financial fraternity
                        India Inc. most worried about inflation. 58% corporates believe inflation to be a leading negative economic
                         indicator

                        Poor governance and corruption turned out to be second biggest negative economic indicator this quarter.
                         Retail (23%), Corporate (18%), Advisors (22%)

                       80%
                                                                                                                                                              Retail        Corporate   Advisors
                       70%

                       60%                                58%
                                                                54%

                       50%

                       40%
                                          31%
                       30%
                                                                                                                                            23%
                                                                                                                                                        22%
                       20%                                                                   17%                                 18%              18%

                                                                      10%                                            9%
                       10%                                                                          6%                      6%                                         7%   6%
                                                                                   3%                                                                                                   3%    4%
                                                                             2%                           1%                                                                      1%                  1%
                          0%
                                                    Inflation         Impact of changing   High govt borrowings     Increase in interest   Poor governance and    Eurozone sovereign         Others
                                                                        climate globally    / high fiscal deficit          rates                corruption            debt crisis




                                                                                                                    28
                                                                      J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Inflationary woes mount over the year
                       Inflation and corruption act as biggest confidence killers through the year. Retail investors consistently worried
                        about high fiscal deficit.
                                                                            July 2011                                                                           March 2011
                   80%                                                                                                    80%             70%                                                Retail
                                                     58%                                                                                             60%                                     Corporate
                   60%                                        54%                                                         60%                                                                Advisors

                   40%                 31%                                                                                40%
                                                                      23%                                                          26%
                                                                             18% 22%         17%                                                             22%           22%
                                                                                                                                                                                       17%
                   20%                                                                                                    20%                                       12%
                                                                                                    6%                                                                                         4%        8%
                                                                                                           1%
                      0%                                                                                                   0%
                                                  Inflation          Poor governance and   High govt borrowings /                        Inflation                Corruption         High govt borrowings /
                                                                          corruption          high fiscal deficit                                                                       high fiscal deficit

                                                                      December 2010                                                                           September 2010

                    80%                                                                                                   80%                                                                Retail
                                                      63%                                                                                                                                    Corporate
                    60%                                        48%                                                        60%                                                                Advisors
                                                                                                                                                     40%
                    40%                                                                                                   40%                                                                       36%
                                                                                                                                          30%                                                30%
                                        19%                            19%                                                         26%                                               26%
                                                                                    16%       17%                                                           16%
                    20%                                                        8%                                         20%                                             14%
                                                                                                     4%     4%                                                      8%
                      0%                                                                                                   0%
                                                   Inflation                Corruption      High govt borrowings /
                                                                                                                                         Inflation         High govt borrowings /   Fear of resurgence of
                                                                                               high fiscal deficit
                                                                                                                                                              high fiscal deficit   US / global recession




                                                                                                                    29
                                                                      J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Corporates upbeat about increase in profits
                        A significant 54% of corporates believe that profits (NPAT) are „somewhat likely' to increase, while 18% believe
                         it is „extremely likely‟ to increase

                        Retail investors‟ expectation (66%) about increase in income drops 9 percentage points from March 2011.

                                           Retail Investor increase in personal income                                 Corporate treasuries in profits (NPAT)
                      100%
                                                                                                          19%                               14%                           18%
                                                                                          22%                                                                                    Extremely likely
                                                                          32%
                                                          37%                                                                36%
                         80%                                                                                                                                42%
                                                                                                                                                                                 Somewhat likely

                         60%
                                                                                                          47%                                                              54%   More or less
                                                                                          53%                                               71%                                  the same
                                                                          49%                                                40%                           34%
                         40%                              46%
                                                                                                                                                                                 Somewhat
                                                                                                                                                                                 unlikely
                                                                                                              26%
                                                                                                                                                                           26%
                         20%                                                              23%                               20%                            22%                   Extremely unlikely
                                                          15%             17%                                                               16%
                                                                                                              7%
                                                          1%              1%                                                 4%0%                                         2%0%
                                                           0%               0%            2%0%                1%                            0%0%           2% 0%
                            0%
                                           Retail (Sep          Retail (Dec     Retail (Mar     Retail (Jul          Corporate      Corporate   Corporate (Mar Corporate (Jul
                                             2010)                2010)           2011)           2011)             (Sep 2010)     (Dec 2010)       2011)         2011)




                                                                                                                   30
                                                                     J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Key investment influencers
- International markets, information sources, expected retirement age, advisory
services, capital investments




                                                             31
               J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Advisors favour international markets; Retail investors think otherwise
                         40% advisors in favour of recommending investments in international markets, while only 16% retail investors
                          show inclination towards investing in international markets.


                      International investment preference- Retail investors                                           International investment preference- Advisors


                                                                      16%
                                                                                                                                                                      40%


                                                                                                  Yes                                                                       Yes
                                                                                                  No                                                                        No




                                                                                                                                  60%
                                                      84%




                                                                                                          32
                                                            J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Advisors recommend Emerging Markets; Retail investors opt for Asia and
                 USA
                       36% Advisors are likely to recommend their clients to invest in Emerging Markets while only 7% of retail
                        investors think of investing in Emerging Markets. Retail investors consider Asia (32%) and USA (27%) as
                        preferred international investment destinations



                      50%
                                                                                                                                                                    Retail    Advisors


                      40%
                                                                                                                                                                       36%
                                                                                                    32%
                      30%                   27%
                                                                                                           24%
                                                                                                                                                  22%
                                                               20%
                      20%
                                                                                                                                           15%
                                                                                 13%                                    13%    13%

                      10%                                 7%                                                                                                   7%
                                                                      4%                 5%                                                                                          4%
                                                                                                                                                                              0%
                         0%
                                                    USA         Europe              Japan               Asia          South East Asia     Greater China    Emerging markets     Others




                                                                                                              33
                                                                J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 N/RDs and IFAs recommend Emerging Markets; Banks prefer Asia
                       40% IFAs, 30% Banks and 50% N/RDs recommend investors invest in markets other than India

                       Of the 50% of N/RDs, 60% select Emerging Markets as their favoured international market followed by China
                        (20%) and Asia (20%)

                       80%
                                                                                                                                          IFA                  Banks               N/RD
                       70%
                                                                                                                                                                            60%
                       60%

                       50%

                       40%                                                                                 36%
                                                                                                                                                               34%
                       30%
                                                                                                                                           24%
                                                                                                                  20%              20%           21% 20%
                       20%                                                                           17%
                                                                                  14%                                   12%                                          14%
                                         11%               10%
                       10%                                            7%                                                      7%                                                        7%
                                                                 5%                                                                                                               5%
                                                      0%                   0%            0% 0%                                                                                                  0%
                         0%
                                                    USA           Europe                Japan              Asia         South East Asia     Greater China    Emerging markets          Others




                                                                                                                34
                                                                  J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Financial Advisors and Personal Network preferred

                        19% retail investors prefer financial advisors while 26% prefer personal network as a source of information for
                         investment decision making




                     30%                                                                                                                             Sep 2010   Dec 2010     Mar 2011    Jul 2011
                                        28% 27%
                                                                                                                                                                     26%
                                                                                                                                                               25%
                     25%                                                                                                                                    24%
                                                                                                                                                         24%


                     20%                                                      19%
                                                          18%18%           18%
                                                                      16%
                                                                                                                                   15%
                     15%
                                                                                                                        12%                                                             13%
                                                                   12%
                                                                                                                     11%               11%
                                                                                                                                          10%
                     10%                                                                                                                                                       8% 8%          9%
                                                                                             8%      7%       8%                                7%
                                                                                                                   6%
                                                                                        5%      5%
                        5%


                        0%
                                          Broker services          Financial advisor    Bank relationship     News & financial      Online resources     Personal network     Personal research
                                                                                           manager                media




                                                                                                                 35
                                                                   J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Investors likely to retire when aged 55-60 years

                        39% and 34% of retail investors expect to retire between 55 to 60 years and 60 to 65 years, respectively

                        12% of investors expect to retire between 50 to 55 years and 8% of investors expect to retire between 65 to 70
                         years of age


                                                                                                                     Below 45
                                                                                   0%
                                                                               1%3% 1%                               Age 45 to 50
                                                                             2%        12%
                                                                           8%                                        Age 50 to 55
                                                                                                                     Age 55 to 60
                                                                                                                     Age 60 to 65

                                                                                                                     Age 65 to 70
                                                                   34%                                               Age over 70
                                                                                                            39%
                                                                                                                     Already retired

                                                                                                                     Can't say




                                                                                                        36
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Corporates unlikely to undertake capital investments in near future

                       Majority of the corporates (60%) are unlikely to undertake capital investment during the next 6 -12 months. In
                        comparison 60% corporates were likely to make capital investments in March 2011.

                  Capital investment projects expected in the next 6 – 12 months

                       100%
                                                                                                                                                                      8%
                                                                                                                                                                               Extremely likely
                         90%                                                                           24%                           20%                              8%

                         80%                                           36%
                                                                                                                                                                               Somewhat likely
                         70%                                                                                                                                         24%

                         60%                                                                           27%
                                                                       12%                                                                                                     More or less the
                                                                                                                                      40%
                                                                                                                                                                               same
                         50%

                         40%                                           18%                                                                                            36%      Somewhat unlikely
                                                                                                       20%
                         30%                                            8%
                                                                                                                                      24%                                      Extremely unlikely
                         20%                                                                           12%

                         10%                                           26%                                                           12%                              24%
                                                                                                       18%                            4%
                            0%
                                                          Sep 2010                      Dec 2010                        Mar 2011                        Jul 2011




                                                                                                                   37
                                                                     J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Thank you




                                                          38
            J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Annexure




                                                         39
           J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – July 2011 (Wave VIII)
                                                                                                                        July 2011
                                                          Delhi/NCR         Mumbai           Kolkata          Chennai          Bengaluru         Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    158.4             135.0            137.7            143.5               126.9        136.1              125.8     137.7
                 Improvement in Indian economic
                                                            165.0             118.2            141.4            142.2               135.5        141.0              132.2     133.7
                 situation
                 Improvement in investment market
                                                            158.1             123.5            139.9            136.7               124.1        136.3              121.0     138.4
                 environment and atmosphere
                 Improvement in global economic
                                                            150.2             136.9            133.3            140.4               123.0        129.5              113.9     146.8
                 environment
                 Increase in BSE Sensex                     162.7             132.8            143.2            148.8               133.3        133.2              130.0     135.4
                 Appreciation in investment
                                                            156.9             144.2            133.3            146.4               130.0        137.3              125.7     133.4
                 portfolio
                 Change in amount of investments            157.2             154.4            134.8            146.7               115.1        139.3              132.2     138.4


                                                                                                                        July 2011
                                                          Delhi/NCR         Mumbai           Kolkata          Chennai          Bengaluru         Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       138.8             129.9            132.1            140.1               140.6        135.1              137.4     141.0
                 Improvement in Indian economic
                                                            140.6             131.5            124.2            145.2               140.8        132.8              130.3     125.9
                 situation
                 Improvement in investment market
                                                            131.3             131.5            131.8            148.4               132.9        131.0              125.8     137.0
                 environment and atmosphere
                 Improvement in global economic
                                                            114.1             98.9             97.0             104.8               111.8        112.1              112.1     116.7
                 environment
                 Increase in BSE Sensex                     142.2             135.9            136.4            145.2               146.1        139.7              133.3     142.6
                 Appreciation in investment
                                                            145.3             141.3            151.5            135.5               144.7        143.1              139.4     157.4
                 portfolio
                 Change in amount of investments            159.4             140.2            151.5            161.3               167.1        151.7              183.3     166.7




                                                                                                         40
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to March 29th 2011
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – March 15thto August 04th,,2011
Indices by city – March 2011 (Wave VII)
                                                                                             March 2011
                                   Delhi/NCR         Mumbai           Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
Retail Confidence Index              151.5             130.2            133.5            151.9            147.2           136.5              135.4     150.0
Improvement in Indian economic
                                     154.2             132.9            143.5            156.7            161.6           143.2              144.8     159.2
situation
Improvement in investment market
                                     151.7             128.3            134.8            152.7            144.1           138.8              135.7     148.8
environment and atmosphere
Improvement in global economic
                                     147.3             107.1            128.8            155.2            152.5           119.5              120.7     137.1
environment
Increase in BSE Sensex               151.7             123.8            130.5            154.2            143.6           136.1              142.1     144.2
Appreciation in investment
                                     153.5             139.8            130.3            143.6            143.3           139.0              134.0     153.2
portfolio
Change in amount of investments      150.2             149.0            133.0            146.1            137.9           142.2              135.2     157.8


                                                                                             March 2011
                                   Delhi/NCR         Mumbai           Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
IFA Confidence Index                 145.2             145.6            130.3            150.3            131.4           137.2              139       132.8
Improvement in Indian economic
                                     141.9             146.9            110.0            160.0            130.0           136.7              137.1     131.7
situation
Improvement in investment market
                                     143.5             145.3            111.7            156.7            128.3           141.7              146.8     131.7
environment and atmosphere
Improvement in global economic
                                     125.8             123.4            96.7             131.7            105.0           116.7              106.5     120.0
environment
Increase in BSE Sensex               133.9             148.4            140.0            140.0            126.7           136.7              130.6     140.0
Appreciation in investment
                                     150.0             148.4            153.3            145.0            125.0           138.3              145.2     131.7
portfolio
Change in amount of investments      175.8             160.9            170.0            168.3            173.3           153.3              167.7     141.7




                                                                                  41
                                   J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – March 15th to March 29th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – December 2010 (Wave VI)
                                                                                                                  December 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    164.6            165.3             149.2            161.9            146.8            176.3             152.0     159.8
                 Improvement in Indian economic
                                                            169.8            167.5             162.4            170.3            156.2            184.4             165.9     167.3
                 situation
                 Improvement in investment market
                                                            162.6            168.0             151.0            161.7            148.1            174.1             150.2     167.5
                 environment and atmosphere
                 Improvement in global economic
                                                            161.6            165.1             147.3            158.6            144.3            181.0             158.2     140.0
                 environment
                 Increase in BSE Sensex                     165.0            164.2             155.8            157.5            145.5            180.2             150.5     164.0
                 Appreciation in investment
                                                            166.7            162.7             140.5            158.4            144.5            181.2             151.0     164.3
                 portfolio
                 Change in amount of investments            162.1            163.9             137.9            165.0            142.4            156.6             136.2     155.6


                                                                                                                  December 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       158.9            154.0             139.0            145.8            151.7            152.2             125.9     146.1
                 Improvement in Indian economic
                                                            170.3            154.8             145.7            154.7            148.3            143.5             124.1     148.6
                 situation
                 Improvement in investment market
                                                            154.7            151.6             131.4            134.4            146.7            148.4             129.6     138.9
                 environment and atmosphere
                 Improvement in global economic
                                                            131.3            127.4             124.3            118.8            125.0            124.2             105.6     134.7
                 environment
                 Increase in BSE Sensex                     160.9            154.8             131.4            126.6            150.0            148.4             111.1     144.4
                 Appreciation in investment
                                                            160.9            161.3             148.6            160.9            156.7            167.7             135.2     152.8
                 portfolio
                 Change in amount of investments            175.0            174.2             152.9            179.7            183.3            180.6             150.0     156.9




                                                                                                        42
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – September 2010 (Wave V)
                                                                                                                  September 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    159.2            163.5             151.3            169.0            156.3            151.5             162.5     167.7
                 Improvement in Indian economic
                                                            172.4            169.1             158.4            176.3            162.5            158.3             177.9     170.1
                 situation
                 Improvement in investment market
                                                            165.8            168.7             153.1            170.8            158.6            152.9             179.4     167.2
                 environment and atmosphere
                 Improvement in global economic
                                                            143.8            136.2             148.6            165.7            151.0            127.0             166.2     161.2
                 environment
                 Increase in BSE Sensex                     166.0            169.8             154.6            171.5            161.5            162.0             163.2     172.4
                 Appreciation in investment
                                                            152.2            165.4             147.1            159.4            150.0            155.9             151.7     165.9
                 portfolio
                 Change in amount of investments            155.2            171.7             146.2            170.3            154.4            152.9             136.5     169.7


                                                                                                                  September 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       149.7            156.3             149.7            166.4            158.3            157.1             155.8     161.6
                 Improvement in Indian economic
                                                            148.4            160.9             143.3            176.7            160.6            153.0             145.0     169.4
                 situation
                 Improvement in investment market
                                                            143.5            151.6             150.0            165.0            163.6            156.1             155.0     161.3
                 environment and atmosphere
                 Improvement in global economic
                                                            112.9            107.8             120.0            135.0            128.8            122.7             110.0     116.1
                 environment
                 Increase in BSE Sensex                     154.8            159.4             163.3            168.3            165.2            156.1             165.0     179.0
                 Appreciation in investment
                                                            162.9            178.1             156.7            170.0            157.6            166.7             187.5     171.0
                 portfolio
                 Change in amount of investments            175.8            179.7             165.0            183.3            174.2            187.9             172.5     172.6




                                                                                                        43
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Indices by city – June 2010 (Wave IV)
                                                                                                                        June 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai         Bengaluru          Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    155.6            152.7             148.9            158.9               146.8         143.6             129.0     158.9
                 Improvement in Indian economic
                                                            156.3            155.5             161.5            165.4               143.8         149.5             157.8     165.4
                 situation
                 Improvement in investment market
                                                            156.3            157.6             152.5            162.2               155.0         144.3             137.3     162.2
                 environment and atmosphere
                 Improvement in global economic
                                                            149.5            148.8             143.4            155.0               147.5         133.5             118.8     155.0
                 environment
                 Increase in BSE Sensex                     160.4            150.2             150.5            156.7               151.0         144.3             144.0     156.7
                 Appreciation in investment
                                                            153.6            150.2             146.3             159                147.3         144.1             105.8     159.0
                 portfolio
                 Change in amount of investments            157.5            153.7             139.5            155.2               136.6         145.8             110.8     155.2


                                                                                                                        June 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai         Bengaluru          Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       143.0            142.5             143.6            145.8               141.7         135.2             134.4     138.3
                 Improvement in Indian economic
                                                            150.0            145.0             148.3            148.4               159.4         162.9             165.0     160.0
                 situation
                 Improvement in investment market
                                                            146.8            147.5             140.0            148.4               148.4         145.2             145.0     145.0
                 environment and atmosphere
                 Improvement in global economic
                                                            106.5            113.8             96.7             106.3               142.2         143.5             135.0     141.7
                 environment
                 Increase in BSE Sensex                     143.5            138.8             146.7            148.4               98.4          100.0             95.0       95.0
                 Appreciation in investment
                                                            151.6            147.5             155.0            151.6               148.4         135.5             130.0     138.3
                 portfolio
                 Change in amount of investments            159.7            162.5             175.0            171.9               153.1         124.2             136.7     150.0




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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – February 2010 (Wave III)
                                                                                                                   February 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    148.5            161.7             137.2            166.2            150.5            152.9             101.5     155.7
                 Improvement in Indian economic
                                                            154.8            165.5             137.0            176.4            151.9            158.3             136.9     169.8
                 situation
                 Improvement in investment market
                                                            147.6            158.5             143.9            164.2            149.0            156.4             110.4     174.5
                 environment and atmosphere
                 Improvement in global economic
                                                            148.2            156.1             136.3            157.5            146.6            151.7             88.4      149.3
                 environment
                 Increase in BSE Sensex                     152.6            167.2             138.0            168.7            149.0            152.4             130.4     161.0
                 Appreciation in investment
                                                            159.0            165.7             134.4            164.2            155.8            146.9             62.1      141.0
                 portfolio
                 Change in amount of investments            128.9            157.2             133.5            166.4            150.5            151.7             80.7      138.8


                                                                                                                   February 2010
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       140.9            142.5             150.3            152.5            146.0            140.3             143.9     150.6
                 Improvement in Indian economic
                                                            140.6            145.0             156.7            153.3            167.7            178.3             158.3     178.3
                 situation
                 Improvement in investment market
                                                            135.9            147.5             146.7            148.3            140.3            146.7             148.3     160.0
                 environment and atmosphere
                 Improvement in global economic
                                                            129.7            113.8             125.0            121.7            150.0            136.7             143.3     155.0
                 environment
                 Increase in BSE Sensex                     137.5            138.8             148.3            153.3            129.0            110.0             123.3     121.7
                 Appreciation in investment
                                                            148.4            147.5             153.3            156.7            137.1            138.3             145.0     141.7
                 portfolio
                 Change in amount of investments            153.1            162.5             171.7            181.7            151.6            131.7             145.0     146.7




                                                                                                        45
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – September 2009 (Wave II)
                                                                                                                  September 2009
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    145.7            148.9             141.2            163.6            157.2            143.6             130.3     130.5
                 Improvement in Indian economic
                                                            152.0            154.7             146.4            169.7            159.2            146.8             140.9     133.4
                 situation
                 Improvement in investment market
                                                            141.7            151.2             140.8            161.2            160.4            141.6             131.5     135.1
                 environment and atmosphere
                 Improvement in global economic
                                                            139.5            147.0             134.5            159.5            160.1            131.8             119.0     128.5
                 environment
                 Increase in BSE Sensex                     153.4            148.0             146.4            169.9            153.1            154.7             139.4     127.7
                 Appreciation in investment
                                                            141.9            148.3             141.5            159.7            155.8            139.4             132.0     128.2
                 portfolio
                 Change in amount of investments            141.2            144.1             137.4            161.4            154.3            147.0             119.0     130.0


                                                                                                                  September 2009
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai        Bengaluru           Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       153.5            154.8             145.2            151.4            146.9            149.4             143.8     153.2
                 Improvement in Indian economic
                                                            154.8            160.0             145.2            148.3            160.0            160.0             154.2     167.7
                 situation
                 Improvement in investment market
                                                            151.6            160.0             140.3            153.3            155.0            158.3             147.9     162.9
                 environment and atmosphere
                 Improvement in global economic
                                                            127.4            134.4             133.9            126.7            143.3            145.0             158.3     162.9
                 environment
                 Increase in BSE Sensex                     161.3            155.6             141.9            148.3            123.3            123.3             129.2     116.1
                 Appreciation in investment
                                                            162.9            163.3             154.8            156.7            145.0            158.3             125.0     159.7
                 portfolio
                 Change in amount of investments            162.9            155.6             154.8            175.0            155.0            151.7             147.9     150.0




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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                Indices by city – July 2009 (Wave I)
                                                                                                                        July 2009
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai         Bengaluru          Pune           Hyderabad   Ahmedabad
                 Retail Confidence Index                    139.7            142.5             144.6            160.2               131.7         149.6             98.1      137.2
                 Improvement in Indian economic
                                                            144.0            149.0             149.5            166.2               131.1         154.6             102.7     137.9
                 situation
                 Improvement in investment market
                                                            140.7            145.0             146.0            157.7               134.5         152.1             101.7     136.0
                 environment and atmosphere
                 Improvement in global economic
                                                            133.9            132.0             141.8            156.3               126.6         139.9             96.5      133.7
                 environment
                 Increase in BSE Sensex                     143.0            141.0             144.8            160.8               133.0         155.5             103.5     139.5
                 Appreciation in investment
                                                            135.9            144.3             144.8            159.4               130.2         150.4             99.8      137.9
                 portfolio
                 Change in amount of investments            140.5            144.0             140.8            160.8               134.5         145.0             84.3      138.3


                                                                                                                        July 2009
                                                          Delhi/NCR        Mumbai            Kolkata          Chennai         Bengaluru          Pune           Hyderabad   Ahmedabad
                 IFA Confidence Index                       139.7            142.5             144.6            160.2               131.7         149.6             98.1      137.2
                 Improvement in Indian economic
                                                            144.0            149.0             149.5            166.2               131.1         154.6             102.7     137.9
                 situation
                 Improvement in investment market
                                                            140.7            145.0             146.0            157.7               134.5         152.1             101.7     136.0
                 environment and atmosphere
                 Improvement in global economic
                                                            133.9            132.0             141.8            156.3               126.6         139.9             96.5      133.7
                 environment
                 Increase in BSE Sensex                     143.0            141.0             144.8            160.8               133.0         155.5             103.5     139.5
                 Appreciation in investment
                                                            135.9            144.3             144.8            159.4               130.2         150.4             99.8      137.9
                 portfolio
                 Change in amount of investments            140.5            144.0             140.8            160.8               134.5         145.0             84.3      138.3




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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Indices – Overall




                                                          Jul 2009     Sep 2009          Feb 2010          Jun 2010         Sep 2010          Dec 2010         Mar 2011   Jul 2011

                                  Retail                   138.3          145.1            147.1             151.7             160.1             159.5            142.0    137.5


                               Advisor                     136.0          151.7            145.9             135.4             144.1             147.2            131.5    124.9


                            Corporate                      133.5          142.5            130.7             134.0             131.8             132.2            123.5    109.0




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                                                                J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Survey Methodology
                Interviews - face-to-face, online and telephone – with investors and advisors in Delhi / NCR,
                Kolkata, Ahmedabad, Mumbai, Pune, Hyderabad, Bengaluru and Chennai
                         Screeners to capture respondent profile
                          –      Retail: Gender, location, age, occupational status, sector of engagement, liquid assets, investment activity in the past year
                          –      Corporate: Treasury size, years of treasury experience and treasury activity in the past year
                          –      Advisors: Extent of distribution reach, location (for IFAs)

                         Six index questions to compute indices - respondents‟ confidence, over the next six months
                          –      Improvement in the Indian economic situation, general Investment market environment and atmosphere, global economic
                                 situation
                          –      BSE Sensex increasing from current levels
                          –      Prospect of self (retail and corporate) / clients‟ (advisors) investment portfolio appreciating and
                          –      Increase / decrease in investments (self - retail and corporate, clients‟ – advisors)

                         Other questions – primary source of investment information, new capital investment projects, types of financial advisory services
                          rendered, preferred investment destination, positive and negative economic indicators, interpretation of a „long term‟ investment,
                          expected percentage of annual return, likelihood of non-investment income increasing, and range BSE Sensex will trade at in
                          December 2011,preferred sector for investment, effect of RBI‟s regulation on limiting investment in liquid funds on corporates.

                …current survey conducted between 22nd July – 4th August, 2011


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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Index Construction Methodology
                Three indices constructed in a similar manner from the six “Index” questions posed to all

                         Each Index question assigned a point between 0 and 200
                          –      Extremely likely - 200 points
                          –      Somewhat likely – 150 points
                          –      More or less the same as current – 100 points
                          –      Somewhat unlikely – 50 points
                          –      Extremely unlikely – 0 points


                         All six Index questions carry equal weight
                          –      Sub – indices computed for each Index question, weighted by number of responses
                          –      Average of the six sub – indices is the overall Index for the category / segment / city


                         The Advisor Confidence Index equally weights the Bank Confidence Index, N/RDs Confidence Index and the
                          IFA Confidence Index

                …indices at any point, can range from “0” to “200”; 200 being the highest possible confidence


                                                                                                        50
                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
Respondent Sample
- Retail, Corporate & Advisor




                                                             51
               J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Eligibility
                        Retail
                          –     Employees from media, advertising & marketing, PR, research and financial websites excluded
                          –     Employees and immediate relatives of J.P. Morgan Asset Management and ValueNotes not eligible for participation
                          –     Investment experience > 2 years
                          –     Age >=22 and <=65
                          –     >= INR 2 lakhs in wallet size
                          –     Invested in stocks, mutual funds, bonds, foreign currency, certificate of deposits, warrants or derivative products in the last year
                          –     Actively save for investments, whether regularly or once in a while

                        Corporate
                          –     Treasury size > =INR 10 lakhs
                          –     Treasury experience >= 2 years


                        Advisors
                          –     Distribute financial products
                          –     >= 2 years of experience in financial services
                          –     N/RDs with nation – wide reach




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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Retail respondent profile
                        1,623 retail investors from the selected cities surveyed



                                                          Retail – By city                                                                       Retail – By wallet size

                                                                                          Delhi / NCR
                                                                                                                                                                          INR 2 to 5 lakhs
                                                12%              14%                                                                 5%
                                                                                          Mumbai
                                                                                                                           10%
                                                                                                                                                         27%
                                                                                          Kolkata                                                                         INR 5 to 10 lakhs
                           12%                                            13%
                                                                                          Chennai
                                                                                                                                                                          INR 10 to 25 lakhs
                                                                                          Bengaluru
                                                                                                                    25%
                           13%                                            12%             Pune
                                                                                                                                                                          INR 25 to 50 lakhs

                                                                                          Hyderabad
                                                12%             12%                                                                                33%
                                                                                                                                                                          INR 50 lakhs and above
                                                                                          Ahmedabad




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                                                                J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Corporate respondent profile
                        Treasury size represents investments excluding strategic equity holdings and hedging investments



                                                           Corporate – By City                                                                    Corporate – By treasury size



                                                               4%
                                                                                              Delhi / NCR                                                                     INR 10 lakhs – 100
                                                   4%                                                                                            4%                           lakhs (INR 1 crore)
                                                                       18%                    Mumbai
                                                                                                                                                              18%
                                                                                                                                                                              INR 1 – 50 crores
                                                                                              Kolkata
                                                                                                                           36%
                        26%                                                                   Chennai
                                                                                                                                                                              INR 50 – 150 crores

                                                                                              Bengaluru

                                                                                              Pune                                                                            INR 150 – 500 crores
                                                                            34%                                                                                 24%
                                     6%
                                                                                              Hyderabad
                                               4%                                                                                                                             INR 500 crores and
                                                          4%                                                                          18%
                                                                                              Ahmedabad                                                                       above




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                                                                    J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Advisor respondent profile
                        Advisors include 20 banks, 20 National / Regional Distributors (N/RDs) and 269 IFAs from the selected
                         cities

                        “Advisor” sentiment equally weighted across the three categories

                                                                                                 IFAs – By City

                                                                                                                                  Delhi / NCR
                                                                                      10%             12%
                                                                                                                                  Mumbai

                                                                          12%                                                     Kolkata

                                                                                                                  17%
                                                                                                                                  Chennai

                                                                                                                                  Bengaluru
                                                                       11%
                                                                                                                                  Pune
                                                                                                               12%
                                                                                                                                  Hyderabad
                                                                                14%
                                                                                                  12%                             Ahmedabad




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                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                 Advisory services profile

                        Financial planning & advice (84%) is the top service offered by advisors followed by financial product advice
                         (76%)



                                                  Basic tax planning                                                                                61%


                                           Capital market advice                                                                            54%

                                      Financial product advice                                                                                                          76%


                               Financial planning & advice                                                                                                                       84%


                        Portfolio management services                                                                              47%

                                                  None of the above        3%


                                                             Others        3%

                                                                   0%            10%          20%          30%         40%          50%          60%         70%          80%          90%   100%




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                                                                       J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
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                Disclaimers / Risk Factors


                        Statutory details: Sponsor: JPMorgan Asset Management (Asia) Inc. Trustee: JPMorgan Mutual Fund India Private Limited, a
                         company incorporated under the Companies Act, 1956. Asset Management Company: JPMorgan Asset Management India
                         Private Limited, a company incorporated under the Companies Act, 1956. JPMorgan Mutual Fund has been established as a Trust
                         under the Indian Trusts Act, 1882, by JPMorgan Asset Management (Asia) Inc., liability restricted to initial contribution of Rs.1
                         lakh.

                        Risk Factors / Disclaimers: Mutual fund investments are subject to market risks. Please read the Offer Document,
                         Statement of Additional Information and Scheme Information Document carefully before investing.

                        The information contained herein is provided based on a public survey. Although we endeavour to ensure that the information is as
                         current and accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy and adequacy of the
                         information. Readers should, wherever possible, verify the information before acting on it.

                        This information is based on our assumptions and interpretations of the survey conducted. No part of our compensation was, is, or
                         will be directly or indirectly related to the specific recommendations or views expressed herein. Be aware that our assumptions and
                         interpretations are partially based on our observation of participants‟ past behavior. Do not base your actions on the material so
                         provided. These observations will change if different assumptions and interpretations are applied for the purpose of preparing this
                         survey report.




                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011
J.P. Morgan Asset Management Standard Template 2009.ppt




                     Research Methodology

                     Retail investors, corporate investors and advisors were surveyed through a combination of face-to-face interviews, online surveys (through www.valuenotes.com) and
                      telephone interviews. The surveys were conducted in selected Indian cities -Delhi / NCR, Kolkata, Ahmedabad, Mumbai, Pune, Hyderabad, Bengaluru and Chennai. The
                      number of responses to each question is multiplied by the respective confidence-level point and these are aggregated at each Index question level. Sub –indices are
                      calculated for each of these six Index questions, which is the arithmetical mean of the aggregates. The arithmetical mean of the sub –indices forms the Overall Confidence
                      Index for that respondent category. The Advisor Confidence Index gives equal weights to the Bank Confidence Index, ND Confidence Index and the IFA Confidence Index to
                      arrive at the overall advisor sentiment. The Confidence Index, at any given point can vary between 0 and 200. 200 denotes the highest level of confidence in improvement
                      from current conditions, 100 denotes a neutral sentiment and 0 denotes an extremely negative outlook.

                     Accuracy or Adequacy of Information

                     The information contained herein is provided based on a public survey. Although we endeavour to ensure that the information is as current and accurate as possible, errors
                      do occasionally occur. Therefore, we cannot guarantee the accuracy and adequacy of the information. Readers should, wherever possible, verify the information before
                      acting on it.

                     Interpretations and assumptions which may differ from person to person

                     This information is based on our assumptions and interpretations of the survey conducted. No part of our compensation was, is, or will be directly or indirectly related to the
                      specific recommendations or views expressed herein. Be aware that our assumptions and interpretations are partially based on our observation of participants‟ past
                      behavior. Do not base your actions on the material so provided. These observations will change if different assumptions and interpretations are applied for the purpose of
                      preparing this survey report.

                     Reproduction of material is prohibited unless approval is taken

                     Information provided in this survey report is with the intent that it be readily available for personal and public non-commercial use and may be reproduced, in part or in whole
                      and by any means, without charge or further permission from J. P. Morgan Asset Management. We only ask that –Users exercise due diligence in ensuring the accuracy of
                      the materials reproduced; J. P. Morgan Asset Management be identified as the source; and, the reproduction is not represented as an official version of the materials
                      reproduced, nor as having been made, in affiliation with or with the endorsement of J. P. Morgan Asset Management. Our Corporate logo may not be used for any purpose
                      without explicit authorization.

                     Reproduction of material included in this survey report, in whole or in part, for the purposes of commercial distribution is prohibited except with written permission from J. P.
                      Morgan Asset Management. Through the permission granting process, J. P. Morgan Asset Management helps ensure individuals/organizations wishing to reproduce
                      materials for commercial purposes have access to the most accurate, up-to-date versions. To obtain permission to reproduce materials on this site for commercial purposes,
                      please contact: Head – Marketing and Communications , JPMorgan Asset Management India Private Limited , J.P. Morgan Tower, Off C.S.T Road, Kalina, Santacruz (East),
                      Mumbai 400 098 , India. Tel: 022 – 6157 3000




                                                          J.P. Morgan Asset Management – ValueNotes Investment Confidence Survey – July 22nd to August 04th, 2011