DECLARATION

I, do hereby declare that this dissertation report work title “ Mutual Fund in India”
submitted by the undersigned in partial fulfillment of Post Graduation Diploma in
Finance & Control (PGDFC) in Institute of Management and Information Science
(IMIS), Bhubaneswar,under the guidance of Prof. S.P. Padhi , faculty of IMIS. It is
exclusively prepared and conceptualized by me and has not been submitted to any other
institution or published anywhere before.

Date
:
Place : Bhubaneswar Prasenjit Panda

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 ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude toward my faculty guide Prof. S.P.
Padhi for his invaluable guidance. It would have never been possible for me to take this
project to completion without his innovative ideas and his relentless support and
encouragement. I consider myself extremely fortunate to have had a chance to do Project
under his guidance. In spite of his hectic schedule he was always approachable and took
his time off to attend to my problems and gave the appropriate advice. It has been a very
enlightening and enjoyable experience to work under his.

I would like to thank Mr. Sujoy Roy (Unit Manager) for providing the concept at the time
of summer training and crucial inputs to my Project

I also would like to thank whole heartily all the faculty members of the Institute of
Management & Information Science for the invaluable knowledge, and for teaching the
principles in most exciting and enjoyable way.

My stay at IMIS was unforgettable to say the least, and the biggest reasons for it being
my classmates of the great batch 2007-09 batch. A small and cute batch with varieties,
lots of fun, lots of birthday treats, and photo sessions in the campus. I thank my
classmates just for being such great buddies.

I would like to thank my parents for taking me to this stage in life; it was their blessings
which always gave me courage to face all challenges and made my path easier.

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 ABSTRACT

This project mainly emphasize on the mutual fund. This project was mainly done with an
objective to know the funds performance, load structure, fund snapshot, funds average AUM,
regarding indices, regarding equity market, debt market, and regarding forex market. Having
gone through over past few months fact sheet, I found that all equity & debt scheme’s
performance had been changed in every month.
Now coming about the concept of mutual fund. Mutual fund is a mechanism for pooling the
resources by issuing units from the investors and investing funds in securities in accordance with
objectives as disclosed in offer document. Investments in securities are spread across a wide
cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the
risk because all stocks may not move in the same direction in the same proportion at the same
time. Mutual fund issues units to the investors in accordance with quantum of money invested by
them. Investors of mutual funds are known as unit holders.
The profits or losses are shared by the investors in proportion to their investments. The mutual
funds normally come out with a number of schemes with different investment objectives which
are launched from time to time. A mutual fund is required to be registered with Securities and
Exchange Board of India (SEBI) which regulates securities markets before it can collect funds
from the public.
Mutual fund is divided into three categories, large cap, medium cap and small cap. Apart from
this, mutual fund have different schemes such as Open-ended Fund/ Scheme, close -ended Fund/
Scheme, Growth / Equity Oriented Scheme, Balanced Fund, Index Fund etc. There are various
plans and investments of mutual fund such as one time investment, SIP (Systematic Investment
Plan), ELSS (Equity Limited Savings Schemes), Automatic Investment Plan, Automatic
Withdrawal Plan and Growth/ Income Plan.
Apart from these, NAV (Net Assets Value) is an important term used in mutual fund. The NAV
per unit is the market value of securities of a scheme divided by the total number of units of the
scheme on any particular date. The performance of a scheme is reflected in its net asset value
(NAV) which is disclosed on daily basis in case of open-ended schemes and on weekly basis in
case of close-ended schemes.
Like all financial products, Mutual funds have advantages and limitation. The advantages are
diversification, professional management, regulatory oversight, liquidity etc. And the limitations
attached to it are no guarantees of profit, management risk, fees and commissions included with
these are very high.

Now the important question arise how to invest in a scheme of a mutual fund. Mutual funds
normally come out with an advertisement in newspapers publishing the date of launch of the new
schemes. Investors can also contact the agents and distributors of mutual funds who are spread all
over the country for necessary information and application forms. Forms can be deposited with
mutual funds through the agents and distributors who provide such services. Nowadays, the post
offices and banks also distribute the units of mutual funds. However, the investors may please
note that the mutual funds schemes being marketed by banks and post offices should not be taken
as their own schemes and no assurance of returns is given by them. The only role of banks and
post offices is to help in distribution of mutual funds schemes to the investors. Investors should
not be carried away by commission/gifts given by agents/distributors for investing in a particular
scheme. On the other hand they must consider the track record of the mutual fund and should take
objective decisions.
Next comes how to choose the scheme for investment from a number of schemes available. The
investors must read the offer document of the mutual fund scheme very carefully. They may also
look into the past track record of performance of the scheme or other schemes of the same mutual

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fund. They may also compare the performance with other schemes having similar investment
objectives. Though past performance of a scheme is not an indicator of its future performance and
good performance in the past may or may not be sustained in the future, this is one of the
important factors for making investment decision. In case of debt oriented schemes, apart from
looking into past returns, the investors should also see the quality of debt instruments which is
reflected in their rating. A scheme with lower rate of return but having investments in better rated
instruments may be safer. Similarly, in equities schemes also, investors may look for quality of
portfolio. They may also seek advice of experts. Almost all the mutual funds have their own web
sites. Investors can also access the NAVs, half-yearly results and portfolios of all mutual funds at
the web site of Association of mutual funds in India (AMFI) www.amfiindia.com. AMFI has also
published useful literature for the investors.
And lastly, in case of winding up of a scheme, the mutual funds pay a sum based on prevailing
NAV after adjustment of expenses. Unit holders are entitled to receive a report on winding up
from the mutual funds which gives all necessary details.
In case of any complaints investors would find the name of contact person in the offer document
of the mutual fund scheme that they may approach in case of any query, complaints or grievances.
Trustees of a mutual fund monitor the activities of the mutual fund. The names of the directors of
asset Management Company and trustees are also given in the offer documents. Investors can
also approach SEBI for redressal of their complaints. On receipt of complaints, SEBI takes up the
matter with the concerned mutual fund and follows up with them till the matter is resolved.
Investors may send their complaints to Securities and Exchange Board of India.

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 CHAPTER – I

INTRODUCTION

1.1 PROJECT OBJECTIVE

The basic objective of this study was to know regarding how mutual fund companies are
working in India. Apart from this to know regarding load structure of different mutual fund, funds
performance, regarding equity market, debt market and their indices. Because all are associated
with mutual fund performance. Apart from this my project objective was to know how mutual
fund industries performance is fluctuating with market volatile and also their present AUM.
To know the percentage of fund investment in equity & debt instrument of different mutual fund.

1.2 SCOPE

In this report various termology, load structure, funds performance, rank, average AUM,
changes return, indices performance and also top holding are stated which would help the
young ,fresh and without knowledgeable investors to invest in the mutual fund scheme/
company. It will also help them to incur minimum loses and give them basic idea regarding
mutual fund scheme/ company and how, when and where to invest in the mutual fund scheme/
company and it is also applicable when they withdrawal the money mutual fund scheme/
company. This report also gives recommendation and small glimpse on current mutual fund
scheme/ company.

LIMITATION
During the completion of this time was main constrains because of now a days security market
is very volatile. Along with security market, mutual fund schemes are very volatile so
information provided may vary from the actual current market position. And also mutual fund
schemes performance are also volatile and changing day to day. So the information may be
different from the actual information.

1.3 RESEARCH METHODOLOGY

To complete this project and prepare this report various research methods are adopted. Various
graphical and tabular representations are made in the report so as to make the report illustrative.
Apart from books and reports and magazines various sources are used like newspaper, internet
so to get updated knowledge regarding various mutual fund company, various mutual fund
scheme and their performance and also the present condition of mutual fund industry in India.

5
2.1 Concept of Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

2.2 History of Mutual Fund

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987
when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen a dramatic imporvements, both
qualitywise as well as quantitywise. Before, the monopoly of the market had seen an ending
phase, the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund
family rose the AUM to Rs. 470 bn in March 1993 and till April 2004, it reached the height of
1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian
banking industry.

The main reason of its poor growth is that the mutual fund industry in India is new in the country.
Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the
prime responsibility of all mutual fund companies, to market the product correctly abreast of
selling.

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The mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Canbank Mutual
Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov
89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in
1990. The end of 1993 marked Rs.47,004 as assets under management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The
Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other
mutual funds.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January
2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting
up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent
mergers taking place among different private sector funds, the mutual fund industry has entered
its current phase of consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 crores under 421 schemes.

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 GROWTH IN ASSETS UNDER MANAGEMENT

Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit
Trust of India effective from February 2003. The Assets under management of the Specified
Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the
industry as a whole from February 2003 onwards.

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 2.3 Types of Mutual Fund
Mutual Funds are broadly classified into three categories viz. Equity Funds, Debt Funds and
Balanced Funds.

EQUITY FUNDS
These funds invest a major part of their corpus in equities. The composition of the fund may vary
from scheme to scheme and the fund manager’s outlook on various scrips. The Equity Funds are
sub-classified depending upon their investment objective, as follows:
Diversified Equity Funds
Mid-Cap Funds
Sector Specific Funds
Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon. Equity funds rank high on the risk-return
matrix.

DEBT FUNDS
These Funds invest a major portion of their corpus in debt papers. Government authorities,
private companies, banks and financial institutions are some of the major issuers of debt papers.
By investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
Gilt Funds: Invest their corpus in securities issued by Government, popularly known
as GOI debt papers. These Funds carry zero default risk but are associated with “Interest Rate”
risk. These schemes are safer as they invest in papers backed by Government.

Income Funds: The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are less risky
compared to equity schemes. These funds are not affected because of fluctuations in equity
markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs
of such funds are affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term
investors may not bother about these fluctuations.

MIPs: Invests around 80% of their total corpus in debt instruments while the rest of the
portion is invested in equities. It gets benefit of both equity and debt market. These scheme ranks
slightly high on the risk-return matrix when compared with other debt schemes.
Short Term Plans (STPs): Meant for investors with an investment horizon of 3-6
months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and
Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.

Liquid Funds: Also known as Money Market Schemes, These funds are meant to
provide easy liquidity and preservation of capital. These schemes invest in short-term instruments
like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-

9
term cash management of corporate houses and are meant for an investment horizon of 1day to 3
months. These schemes rank low on risk-return matrix and are considered to be the safest
amongst all categories of mutual funds.

BALANCED FUNDS

These funds, as the name suggests, are a mix of both equity and debt funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment objective of
the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part
provides growth and the debt part provides stability in returns.
Each category of funds is backed by an investment philosophy, which is pre-defined in the
objectives of the fund. The investor can align his own investment needs with the funds objective
and invest accordingly.

2.4 Mutual Fund Set Up

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management
company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor
who is like promoter of a company. The trustees of the mutual fund hold its property for the
benefit of the unitholders. Asset Management Company (AMC) approved by SEBI manages the
funds by making investments in various types of securities. Custodian, who is registered with
SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested
with the general power of superintendence and direction over AMC. They monitor the
performance and compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require that at least two thirds of the directors of trustee company or board of
trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of
the directors of AMC must be independent. All mutual funds are required to be registered with
SEBI before they launch any scheme. However, Unit Trust of India (UTI) is not registered with
SEBI (as on January 15, 2002).

There are many entities involved and the diagram below illustrates the organisational set up of a
mutual fund:

Organisation of a Mutal Fund

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2.5 Net Asset Value (NAV)

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV).

Mutual funds invest the money collected from the investors in securities markets. In simple
words, Net Asset Value is the market value of the securities held by the scheme. Since market
value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV
per unit is the market value of securities of a scheme divided by the total number of units of the
scheme on any particular date. For example, if the market value of securities of a mutual fund
scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the
investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the
mutual funds on a regular basis - daily or weekly - depending on the type of scheme.

2.6 Mutual Fund Scheme

A) On the basis of Objective
Equity Funds/ Growth Funds:
The aim of growth funds is to provide capital appreciation over the medium to long term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risks. These schemes provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time.

Diversified funds:
These funds invest in companies spread across sectors. These funds are generally meant for risk-
taking investors who are not bullish about any particular sector.

Sector funds:
These are the funds/schemes which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods
(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of
the respective sectors/industries. While these funds may give higher returns, they are more risky
compared to diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

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Index funds:
These funds invest in the same pattern as popular market indices like S&P 500 and BSE Index.
The value of the index fund varies in proportion to the benchmark index.

Tax Saving Funds:

These funds offer tax benefits to investors under the Income Tax Act. Opportunities provided
under this scheme are in the form of tax rebates U/s 88 as well saving in Capital Gains U/s 54EA
and 54EB. They are best suited for investors seeking tax concessions.

Debt / Income Funds:

These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds,
debentures, government securities, commercial paper and other money market instruments. They
are best suited for the medium to long-term investors who are averse to risk and seek capital
preservation. They provide regular income and safety to the investor.

Liquid Funds / Money Market Funds:

These funds invest in highly liquid money market instruments. The period of investment could be
as short as a day. They provide easy liquidity. They have emerged as an alternative for savings
and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal
for Corporates, institutional investors and business houses who invest their funds for very short
periods.

Gilt Funds:
These funds invest in Central and State Government securities. Since they are Government
backed bonds they give a secured return and also ensure safety of the principal amount. They are
best suited for the medium to long-term investors who are averse to risk.

Balanced Funds:
These funds invest both in equity shares and fixed-income-bearing instruments (debt) in some
proportion. They provide a steady return and reduce the volatility of the fund while providing
some upside for capital appreciation. They are ideal for medium- to long-term investors willing to
take moderate risks.

Hedge Funds:
These funds adopt highly speculative trading strategies. They hedge risks in order to increase the
value of the portfolic.

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 B) On the basis of flexibility
Open-ended Funds:
These funds do not have a fixed date of redemption. Generally they are open for subscription and
redemption throughout the year. Their prices are linked to the daily net asset value (NAV). From
the investors' perspective, they are much more liquid than closed-ended funds. Investors are
permitted to join or withdraw from the fund after an initial lock-in period.

Close-ended Funds:
These funds are open initially for entry during the Initial Public Offering (IPO) and thereafter
closed for entry as well as exit. These funds have a fixed date of redemption. One of the
characteristics of the close-ended schemes is that they are generally traded at a discount to NAV;
but the discount narrows as maturity nears. These funds are open for subscription only once and
can be redeemed only on the fixed date of redemption. The units of these funds are listed (with
certain exceptions), are tradable and the subscribers to the fund would be able to exit from the
fund at any time through the secondary market.

Interval funds:
These funds combine the features of both open-ended and close-ended funds wherein the fund is
close-ended for the first couple of years and open-ended thereafter. Some funds allow fresh
subscriptions and redemption at fixed times every year (say every six months) in order to reduce
the administrative aspects of daily entry or exit, yet providing reasonable liquidity.

C) On the basis of geographic location

Domestic funds:
These funds mobilise the savings of nationals within the country.

Offshore Funds:
These funds facilitate cross border fund flow. They invest in securities of foreign companies.
They attract foreign capital for investment. Is there is any tax applicable on the redemption of
mutual funds? Yes. The tax applicable is called as STT i.e. Security transaction tax which is
0.25%. STT is applicable only in case of redemption of equity linked schemes.

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 2.7 Different Plans of Mutual Fund
Growth Plan and Dividend Plan:

A growth plan is a plan under a scheme wherein the returns from investments are reinvested and
very few income distributions, if any, are made. The investor thus only realises capital
appreciation on the investment. This plan appeals to investors in the high income bracket. Under
the dividend plan, income is distributed from time to time. This plan is ideal to those investors
requiring regular income.

Dividend Reinvestment Plan:

Dividend plans of schemes carry an additional option for reinvestment of income distribution.
This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by a
fund are reinvested on behalf of the investor, thus increasing the number of units held by the
investors.

Automatic Investment Plan:

Under the Automatic Investment Plan (AIP) also called Systematic Investment Plan (SIP), the
investor is given the option for investing in a specified frequency of months in a specified scheme
of the Mutual Fund for a constant sum of investment. AIP allows the investors to plan their
savings through a structured regular monthly savings program.
Automatic Withdrawal Plan:

Under the Automatic Withdrawal Plan (AWP) also called Systematic Withdrawal Plan (SWP), a
facility is provided to the investor to withdraw a pre-determined amount from his fund at a pre-
determined interval.

2.8 Performance of Mutual Fund Scheme

Let us start the discussion of the performance of mutual funds in India from the day the concept
of mutual fund took birth in India. The year was 1963. Unit Trust of India invited investors or
rather to those who believed in savings, to park their money in UTI Mutual Fund.
For 30 years it goaled without a single second player. Though the 1988 year saw some new
mutual fund companies, but UTI remained in a monopoly position.
The performance of mutual funds in India in the initial phase was not even closer to satisfactory
level. People rarely understood, and of course investing was out of question. But yes, some 24
million shareholders was accustomed with guaranteed high returns by the begining of
liberalization of the industry in 1992. This good record of UTI became marketing tool for new
entrants. The expectations of investors touched the sky in profitability factor. However, people
were miles away from the praparedness of risks factor after the liberalization.
The Assets Under Management of UTI was Rs. 67bn. by the end of 1987. Let me concentrate
about the performance of mutual funds in India through figures. From Rs. 67bn. the Assets Under
Management rose to Rs. 470 bn. in March 1993 and the figure had a three times higher
performance by April 2004. It rose as high as Rs. 1,540bn.

14
The net asset value (NAV) of mutual funds in India declined when stock prices started falling in
the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative
investments. There were rather no choice apart from holding the cash or to further continue
investing in shares. One more thing to be noted, since only closed-end funds were floated in the
market, the investors disinvested by selling at a loss in the secondary market.
The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal,
the losses by disinvestments and of course the lack of transparent rules in the whereabout rocked
confidence among the investors. Partly owing to a relatively weak stock market performance,
mutual funds have not yet recovered, with funds trading at an average discount of 1020 percent of
their net asset value.
The supervisory authority adopted a set of measures to create a transparent and competitve
environment in mutual funds. Some of them were like relaxing investment restrictions into the
market, introduction of open-ended funds, and paving the gateway for mutual funds to launch
pension schemes.
The measure was taken to make mutual funds the key instrument for long-term saving. The more
the variety offered, the quantitative will be investors.
At last to mention, as long as mutual fund companies are performing with lower risks and higher
profitability within a short span of time, more and more people will be inclined to invest until and
unless they are fully educated with the dos and donts of mutual funds.

2.9 Advantages of Mutual Fund

Mutual funds offer several advantages to investors
Affordable:
Almost everyone can buy mutual funds. Mutual Funds generally provide a opportunity to invest
with less funds as compared to other avenues in the capital market. Even the ancillary fee which
one has to pay in the form of brokerages, custodian etc is lower than other options and is directly
linked to the performance of the scheme.
Professional Management:
For an average investor, it may be quite difficult to decide what to buy, when to buy, how much to
buy and when to sell. Mutual Funds have a skilled professionals who have years of experience to
manages your money. The fund manager takes these decisions after doing adequate research on
the economy, industries and companies, before buying stocks or bonds. They use intensive
research techniques to analyze each investment option for the potential of returns.
Diversification:
Investments are less risky as it is spread across a wide cross-section of industries and sectors.
Diversification reduces the risk because all stocks generally don’t move in the same direction at
the same time. A mutual fund is able to diversify more easily than an average investor across
several companies.
Liquidity:
You can afford to withdraw your money from a mutual fund on immediate basis when compared
with other forms of savings like the public provident fund or National Savings Scheme. You can
withdraw or redeem money at the Net Asset Value related prices in the open-end schemes. In
closed-end schemes, the units can be transacted at the prevailing market price on a stock
exchange.

15
 Tax Benefits:
Mutual funds have historically been more efficient from the tax point of view. A debt fund pays a
dividend distribution tax of 12.5 per cent before distributing dividend to an individual investor or
an HUF, whereas it is 20 per cent for all other entities. There is no dividend tax on dividends from
an equity fund for individual investor.
Potential of returns:
Mutual funds generally offer better than any other option over a given period of time. Though
they are affected by the interest rate risk in general, the returns generated are more.

Well Regulated:
The Mutual Fund industry is very well regulated. All investments have to be accounted for. SEBI
acts as a true watchdog in this case and can impose penalties on the AMCs at fault. The
regulations are also designed to protect the investors’ interests are also implemented effectively.
Transparency:
As they are under a regulatory framework, they have to disclose their holdings, investment
pattern and all the information that can be considered as material, before all investors to ensure
transparency which is unlike any other investment option in India where the investor knows
nothing as nothing is disclosed.

2.10 Drawbacks of Mutual Fund

Mutual funds have their drawbacks. They are as follows:

No Guarantees:
No investment is risk free. If the entire stock market declines in value, the value of mutual fund
shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer
risks when they invest in mutual funds than when they buy and sell stocks on their own.
However, anyone who invests through a mutual fund runs the risk of losing money.
Fees and commissions:
All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge
sales commissions or "loads" to compensate brokers, financial consultants, or financial planners.
Even if you don't use a broker or other financial adviser, you will pay a sales commission if you
buy shares in a Load Fund.
Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent
of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on
the income you receive, even if you reinvest the money you made.
Management risk:
When you invest in a mutual fund, you depend on the fund's manager to make the right decisions
regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you
might not make as much money on your investment as you expected. Of course, if you invest in
Index Funds, you forego management risk, because these funds do not employ managers.

16
 3.1 Association of Mutual Fund in India (AMFI )

With the increase in mutual fund players in India, a need for mutual fund association in India was
generated to function as a non-profit organization. Association of Mutual Funds in India (AMFI)
was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been registered
with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members. It
functions under the supervision and guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a
professional and healthy market with ethical lines enhancing and maintaining standards. It
follows the principle of both protecting and promoting the interests of mutual funds as well as
their unit holders.

The objectives of Association of Mutual Funds in India:

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has
certain defined objectives which juxtaposes the guidelines of its Board of Directors. The
objectives are as follows:

• This mutual fund association of India maintains high professional and ethical standards in
all areas of operation of the industry.

• It also recommends and promotes the top class business practices and code of conduct
which is followed by members and related people engaged in the activities of mutual
fund and asset management. The agencies who are by any means connected or involved
in the field of capital markets and financial services also involved in this code of conduct
of the association.

• AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund
industry.

• Associations of Mutual Fund of India do represent the Government of India, the Reserve
Bank of India and other related bodies on matters relating to the Mutual Fund Industry.

• It develops a team of well qualified and trained Agent distributors. It implements a

programme of training and certification for all intermediaries and other engaged in the
mutual fund industry.

• AMFI undertakes all India awareness programme for investors in order to promote proper
understanding of the concept and working of mutual funds.

• At last but not the least association of mutual fund of India also disseminate information
on Mutual Fund Industry and undertakes studies and research either directly or in
association with other bodies.

17
The sponsors of Association of Mutual Funds in India
Bank sponsored
• SBI Fund Management Ltd.
• BOB Asset Management Co. Ltd.
• Canbank Investment Management Services Ltd.
• UTI Asset Management Company Pvt. Ltd.

Institutions

• GIC Asset Management Co. Ltd.

• Jeevan Bima Sahayog Asset Management Co. Ltd.

Private Sector
Indian:-
• BenchMark Asset Management Co. Pvt. Ltd.
• Cholamandalam Asset Management Co. Ltd.
• Credit Capital Asset Management Co. Ltd.
• Escorts Asset Management Ltd.
• JM Financial Mutual Fund
• Kotak Mahindra Asset Management Co. Ltd.
• Reliance Capital Asset Management Ltd.
• Sahara Asset Management Co. Pvt. Ltd
• Sundaram Asset Management Company Ltd.
• Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:

• Birla Sun Life Asset Management Co. Ltd.
• DSP Merrill Lynch Fund Managers Limited
• HDFC Asset Management Company Ltd.

Predominantly Foreign Joint Ventures:

• ABN AMRO Asset Management (I) Ltd.

• Alliance Capital Asset Management (India) Pvt. Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• Fidelity Fund Management Private Limited
• Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
• HSBC Asset Management (India) Private Ltd.
• ING Investment Management (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Principal Asset Management Co. Pvt. Ltd.

18
 • Prudential ICICI Asset Management Co. Ltd.
• Standard Chartered Asset Mgmt Co. Pvt. Ltd.

3.2 Mutual Fund Companies in India

ABN AMRO Mutual Fund
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt.
Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was
incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual
Fund.

Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial.
Sun Life Financial is a golbal organisation evolved in 1871 and is being represented in Canada,
the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual
Fund follows a conservative long-term approach to investment. Recently it crossed AUM of Rs.
10,000 crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund)

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB
Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers nemely Housing
Development Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets
(India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the Trustee
Company of HSBC Mutual Fund.

ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company.
It is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd.
was incorporated on April 6, 1998.

ICICI Prudential Mutual Fund

19
The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life
insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,
1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is
Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company
Limited incorporated on 22nd of June, 1993.

Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. as
the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31,
1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs
25.8 crore.

State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshor fund,
the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank
sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have
already yielded handsome returns to investors. State Bank of India Mutual Fund has more than
Rs. 5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.

Tata Mutual Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for Tata
Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager
is Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset
Management Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as on
April 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is
presently having more than 1,99,818 investors in its various schemes. KMAMC started its
operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors
with varying risk - return profiles. It was the first company to launch dedicated gilt scheme
investing only in government securities.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI
Mutual Fund with the support of UTI Trustee Company Privete Limited. UTI Asset Management
Company presently manages a corpus of over Rs.20000 Crore. The sponsorers of UTI Mutual
Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and
Life Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds,
Income Funds, Asset Management Funds, Index Funds, Equity Funds and Balance Funds.

20
Reliance Mutual Fund
Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor
of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It
was registered on June 30, 1995 as Reliance Capital Mutual Fund which was changed on March
11, 2004. Reliance Mutual Fund was formed for launching of various schemes under which units
are issued to the Public with a view to contribute to the capital market and to provide investors
the opportunities to make investments in diversified securities.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered
Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset
Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December
20, 1999.

Franklin Templeton India Mutual Fund

The group, Frnaklin Templeton Investments is a California (USA) based company with a global
AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in
the world. Investors can buy or sell the Mutual Fund through their financial advisor or through
mail or through their website. They have Open end Diversified Equity schemes, Open end Sector
Equity schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income
and Liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.

Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and its leading in the market in
securities, investmenty management and credit services. Morgan Stanley Investment
Management (MISM) was established in the year 1975. It provides customized asset management
services and products to governments, corporations, pension funds and non-profit organisations.
Its services are also extended to high net worth individuals and retail investors. In India it is
known as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC
is Morgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme
serving the needs of Indian retail investors focussing on a long-term capital appreciation.

Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Excorts Finance Limited as its sponsor.
The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on
December 1, 1995 with the name Escorts Asset Management Limited.

21
Alliance Capital Mutual Fund
Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital
Management Corp. of Delaware (USA) as sponsorer. The Trustee is ACAM Trust Company Pvt.
Ltd. and AMC, the Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office
in Mumbai.

Benchmark Mutual Fund

Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as
the sponsorer and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated
on October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company
Pvt. Ltd. is the AMC.

Canbank Mutual Fund

Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor.
Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. The
Corporate Office of the AMC is in Mumbai.

DSP Chola Mutual Fund

Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company
Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and
AMC is Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed
Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in
accordance with the provisions of the Indian Trust Act, 1882. . The Company started its business
on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog
Asset Management Company Ltd as the Investment Managers for LIC Mutual Fund.

GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of
India undertaking and the four Public Sector General Insurance Companies, viz. National
Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co.
Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance
with the provisions of the Indian Trusts Act, 1882.

22
 3.3 Future of Mutual Fund industry in India
By December 2004, Indian mutual fund industry reached Rs 1,50,537 crore. It is estimated that
by 2010 March-end, the total assets of all scheduled commercial banks should be Rs 40,90,000
crore.

The annual composite rate of growth is expected 13.4% during the rest of the decade. In the last 5
years we have seen annual growth rate of 9%. According to the current growth rate, by year 2010,
mutual fund assets will be double.

Let us discuss with the following table:

Aggregate deposits of Scheduled Com Banks in India (Rs.Crore)

Mar-
Month/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Sep-04 Dec-04
04

Deposits 605410 851593 989141 1131188 1280853 - 1567251 1622579

Change in % over last

15 14 13 12 - 18 3
yr

Source – RBI

Mutual Fund AUM’s Growth

Month/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Sep-04 Dec-04

MF AUM's 68984 93717 83131 94017 75306 137626 151141 149300

Change in % over last yr 26 13 12 25 45 9 1

Source – AMFI

Some facts for the growth of mutual funds in India

• 100% growth in the last 6 years.

• Number of foreign AMC's are in the que to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.
• Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.

23
 • We have approximately 29 mutual funds which is much less than US having more than
800. There is a big scope for expansion.
• 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
• Mutual fund can penetrate rurals like the Indian insurance industry with simple and
limited products.
• SEBI allowing the MF's to launch commodity mutual funds.
• Emphasis on better corporate governance.
• Trying to curb the late trading practices.

Introduction of Financial Planners who can provide need based advice.

The size of the mutual funds industry is expected to be worth Rs. 4 lakh crores by 2010 from its
current level of over Rs. 2 lakh crores, according to a study conducted by the Associated
Chambers of Commerce and Industry of India (Assocham).
The study says that investors in future would prefer mutual funds for their investment destination
rather than choosing to park their funds in stock markets because of safer returns and lower
degree of risk as compared to other markets.
The Assocham study has the compilation of observations made by over 210 investors across the
country in which over 80 per cent have exuded confidence that the volumes of the Indian mutual
funds industry will keep flourishing in future. In 1987, its size was Rs.1,000 crores, which went
up to Rs. 4,100 crores in 1991 and subsequently touched a figure of Rs.72,000 crores in 1998.
Since then this figure has kept ballooning, revealing the efficiency of growth in the mutual fund
industry.
The study says that mutual funds would be one of the major instruments of wealth creation and
wealth saving in the years to come, giving positive results. The consistency in the performance of
mutual funds has been a major factor that has attracted many investors. The Indian mutual funds
industry has been growing at a healthy pace of 16.68 per cent for the past eight years and the
trend will move further.
The presence of intelligent investors has already made the investment market scenario fiercely
competitive, with in increased number of high-yielding investment opportunities. The industry
has also witnessed several mergers and acquisitions.
The study has revealed the futuristic nature of investors; they invest for future security and
certainty (54 per cent). However, there were some investors who invest in order to meet their
current requirements (38 per cent). In addition, it has been clearly indicated by the respondents
that investments that are long-term are preferred more (54 per cent) over medium-term (23 per
cent) and short-term investments (23 per cent).

24
 4.1 Findings & Analysis
NEWS & INDICES
EQUITY MARKET:
Highlights
• The Indian equity markets witnessed heavy selling in the month of October. The
markets were impacted by the de-leveraging and risk aversion amongst global
investors. Regulators and policy makers were active in responding to the evolving
and fluid situation. The poor corporate results in the overseas markets too
delivered a negative impact on the Indian equities markets.
• BSE Sensex and CNX Nifty ended the month at 9788 and 2886, down 23.9% and
26.4% respectively over previous month.
• The liquidity crisis in the US economy, high level of negative sentiments and
selling by funds facing liquidity pressures were factors that caused most equity
markets across the world to post heavy losses. Mid and small-cap stocks
underperformed their large cap counterparts. Amongst sectors, metals and realty
were the most affected given the sharp downshift in demand and an ensuring
decline in prices. FIIs sold stock worth $3.5 billion in October, taking the YTD
outflows to $12.9 billion.
Equity Market Indicators:
October 2008 – Key Indices
Percentage Changes
Indices Close YTD 1 year 3 year 5 year 10 year
BSE Sensex 9788.06 -51.75 -50.38 7.21 14.79 13.28
S&P CNX 2885.60 -52.99 -50.81 6.53 13.13 13.40
Nifty
BSE 100 4953.98 -55.99 -51.95 5.73 14.77 14.70

BSE 1145.68 -56.87 -52.61 4.37 13.23 12.34

200
S&P CNX 500 2225.70 -58.43 -53.22 2.21 12.79 14.71
CNX Mid Cap 3506.40 -61.89 -52.33 -0.11 20.94 NA
BSE Small Cap 3765.11 -71.79 -60.97 -9.46 NA NA

October 2008 – Sectoral Indices

25
 Percentage Changes
Indices Close YTD 1 year 3 year 5 year 10 year
BSE Auto 2685.62 -52.61 -50.19 -8.05 6.04 NA
BSE Bankex 5011.24 -56.11 -53.82 4.00 15.42 NA
BSE Capital good 7017.61 -64.48 -65.16 15.31 30.23 NA

BSE FMCG 1799.83 -22.42 -11.70 8.76 14.09 NA

BSE Healthcare 2778.64 -37.12 -28.95 0.78 6.25 NA
BSE Metal 5367.60 -73.19 -69.47 -1.40 4.93 NA
BSE Oil & Gas 6195.62 -53.42 -46.31 18.11 20.56 NA
BSE Tech 2161.45 -46.17 -45.08 1.21 14.93 NA

Institutional Activity (Net Purchase & Sales) Rs Crores

October - 08 01- Jan- 08 to 11- Nov- 08
Debt Equity Total Debt Equity Total
FIIs -2047.50 -14248.60 -16296.10 7945.00 -51231.00 -43286.00
Mutual Fund -24837.5 1449.10 -23388.40 35048.00 13577.00 48625.00

Outlook:
In last one and half months the Indian equity markets suffer significant decline and
continued to remain volatile as cues from the global economy become clearer of an
impending slowdown. The ongoing de-leveraging and concerns about a recession in
developed economies put pressure on most asset classes across the globe. The recent
quarterly results were largely in line with expectations, with forex losses impacting net
earnings for many companies. Key consumption-oriented sectors like FMCG, telecom,
banking and pharma companies reported decent earnings.

In the near-term, markets will continue to remain under pressure due to fear of global
economic slowdown and news of many western world economies going into recession
led by the global financial crisis. India Inc will also feel the pressure for next two quarters
or so but impact of softening interest rate and commodity prices including crude oil will
start reflecting in their corporate earnings by June quarter. As equity market discounts any
event in advance, fear of economic slowdown is more or less priced in at current level
and market will stabilize at current level with short-term negative bias. But long-term
investors can start investing at current level with at least three-year investment horizon.

DEBT MARKET:
Highlights
• The Indian bond markets rallied sharply following a clear shift in the monetary
policy focus from inflation to growth. Globally, central banks resorted to
monetary easing and further rounds of liquidity injections that included
unprecedented moves such as the Fed opening up currency swap lines for
emerging economies.
• The 10-yr sovereign bond yield eased through the month as the large rate cuts by
RBI pushed yields lower. In addition, the falling crude oil prices and commodities

26
 prices almost erased all inflation fears. The benchmark 10-yr bond yield eased
from 8.63% to 7.45% in the course of the month.
• The liquidity conditions eased intermittently post policy action by RBI in the
second week. However, RBI intervention in forex markets along with increased
domestic borrowing by leading companies renewed pressures and inter-bank rates
moved up sharply to close in double digits. RBI continued to inject liquidity
through repo auctions and in addition to that announced a slew of liquidity and
other policy measures including CRR cuts.

Debt Market Indicators:

Benchmark As on As on As on Change Change
31/10/2008 29/9/2008 31/3/2008 Month Since
March
364 days 7.40% 8.80% 7.35% -1.40% 0.05%
T bill(Primary)
5 year Benchmark 7.31% 8.68% 7.77% -1.37% -0.46%
10 year Benchmark 7.45% 8.62% 7.94% -1.17% -0.49%
15 year Benchmark 7.82% 9.15% 8.25% -1.33% -0.43%
91 day 15.50% 12.53% 9.50% 3.15% 6.00%
Manufacturing
CP(P1+)
Annualized 1 year 5.62% 3.05% 2.10% 2.57% 3.52%
AAA Spreads
Annualized 5 year 3.98% 2.33% 1.90% 1.65% 2.08%
AAA Spreads
5 year OIS 6.57% 8.27% 7.26% -1.70% -0.69%
Bank rate 6.00% 6.00% 6.00% 0.00% 0.00%
RBI LAF-Repo rate 8.00% 9.00% 7.75% -1.00% 0.25%

RBI LAF-Reverse 6.00% 6.00% 6.00% 0.00% 0.00%

Repo rate
Foreign Exchange 258.42 291.97 304.66 -33.56 -46.25
Reserve($ bn)
PLR 12.75% 12.75% - 12.75%- 0.00% 0.00%
-13.25% 13.25% 13.25%
Nymex Crude 67.81 96.37 101.58 -28.56 -33.77
US Fed Fund Rate 1.00% 2.00% 2.25% -1.00% -1.25%
US 10 year Gilt 3.96% 3.58% 3.41% 0.39% 0.55%
CRR 6.50% 7.50% 7.50% -1.00% -1.00%

Outlook:
The last one and half months Indian debt markets saw a sharp bull run followed by the
emergency rate cuts by RBI, as FED and other central banks also cut rates to ease
liquidity and stabilize market. Falling international crude prices and lower inflation make
case stronger for further rate cut by RBI. The RBI took a series of heavy-duty measures
to alleviate the liquidity crunch. It slashed CRR by a cumulative 350 bps and RepoRate

27
by 150 bps. RBI also opened a liquidity window for Mutual Funds, where the funds could
access liquidity against their holding of Bank CDs.

Over the near term, liquidity could tighten due to government borrowings and central
bank intervention in the forex markets. Gilt yields are likely to decline further as inflation
moderates. With softening interest rate scenario in next few months, income funds make
a strong investment case at this point of time with minimum one year of investment
horizon as declining interest rate will prove positive for income funds.

FOREX MARKET:
Highlights
• The Indian rupee plunged to record lows amidst persistent selling by FIIs and
relative dollar strength. During the month the dollar touched the historical mark of
50 against the INR. The falling rupee has brought cheer to export oriented sectors
like IT and Textiles but the government's liability is on a rise as imports still
outstrip exports by a large margin. The rupee closed the month at 49.25 against
the dollar.
• The recent forex intervention has led to depletion of forex reserves, which stood
at $258.4 billion (as of Oct 24). With this, the fiscal year-todate drop in reserves
has been $51.3 billion. RBI has indicated that it will continue to support INR
through forex interventions.

Currency 31st Oct.08 29th Sept.08 Absolute % Change

change
1 US $ 49.25 46.94 -2.31 -4.92%
1 Euro 62.84 67.79 4.95 7.30%
100 Yen 50.42 44.19 -6.23 -14.10%
1 Pound 80.36 85.57 5.21 6.09%

28
MF NEWS
MFs see biggest fall in assets in October
From a high of Rs 6 lakh crore to a low of Rs 4.3 lakh crore, that's the extent of volatility
witnessed by assets held by the Indian mutual fund industry since January this year. The
net decline in the industry's assets of 18% since September marks the highest fall ever in
average AUMs in a single month in the history of the Indian mutual fund industry. With
assets of Rs 4, 31,901 crore, the mutual fund industry, which grew its assets rapidly,
Especially over the last three years is now backing to the levels of June 2007. The global
market meltdown and the fall in valuations of the equity assets held by these fund houses
have obviously hit this industry hard since the beginning of this calendar year. However,
the major dampener last month has been the huge redemption witnessed in the Fixed
Maturity Plans (FMP) on account of credit risk concerns. Reliance, HDFC and ICICI
Prudential continue to retain the top three slots of the largest asset management
companies of the country.

Rate cut hopes spark investor fancy for gilt fund

Debt funds investing in sovereign bonds are corralling investors, lured by better returns
and relative safety, and hopes of more interest rate cuts as India tries to revive a flagging
economy. After hemorrhaging for six successive months, gilt funds attracted a net 37.25
billion rupees in October, their highest monthly inflow since the data was made available
in 1999 by the Association of Mutual Funds in India. Investors are enticed by an average
3.3 percent jump in net values of such funds in October, as yields dropped by 112 basis
points on easing monetary policy, their highest monthly gain since November 2001,
according to global fund tracker Lipper. Both retail and large corporate investors are
queuing up for funds investing into government securities after pulling out from other
fixed income funds on a widespread concern over the credit quality of bond fund
portfolios.

Union bank, KBC asset management in JV to launch MF

Union Bank of India has entered into a joint venture with a leading Belgium financial
player KBC Group to launch mutual fund business. Union Bank will have a 51 per cent
stake in the JV while the remaining will be held by the Belgian group. The initial capital
of the new company will be Rs 50 crore which would increase as the business expands.
Indian mutual fund industry has been growing at 47 per cent year-on-year over the last
five years and still the penetration levels are very low indicating the vast untapped
potential. Erwin Schoeters, managing director of KBC Asset Management, the mutual

29
fund arm of KBC group said one can break even in the mutual fund industry at an asset
under management (AUM) of about Rs 6,000 crore.

MFs introduce innovative marketing features to retain investor

In the face of sharp decline in asset base, some mutual fund houses are seeking to gain
investor confidence by introducing newer marketing features. Bharti AXA, SBIMF and
Tata Asset Management have come up with business development initiatives to draw
investor attention. Bharti AXA has introduced a product feature called 'Zero Balance
Portfolio', where the fund house will feed information about products and services on
daily basis either through email or by post. The AMC is offering the service across India
through its distribution network free of cost. Laying thrust on the Internet medium, Tata
Asset Management has uploaded an audio speech of its managing director Mr. Ved
Prakash Chaturvedi explaining investors the pros and cons of market recession with
reference to Tata's 'reasonable' scheme returns.

MFs tempt big investors with assured return

Pushed to the wall, several mutual fund (MF) houses have cut off-market deals with
corporate and financial institutions to fight the cash crunch. With redemption pressures
mounting amid a liquidity squeeze, some fund houses have given "guaranteed" returns to
big-ticket investors who were willing to bail them out by parking money in MF schemes
for a few weeks. Under the arrangement, even if the net asset value (NAV) of the scheme
dipped, these investors would be allowed to exit at a higher, pre-agreed NAV, something
that other investors in the scheme would be clueless about.

RBI aid puts mutual fund on recovery road

Almost one month after the RBI stepped in to help the mutual fund industry out of its
liquidity problems, it does appear that they are on the road to recovery, said mutual fund
officials. RBI had for the first time on October 14 introduced a 14-day liquidity window
to provide credit to mutual funds in need. This measure has greatly helped the mutual
fund industry, which is now returning to normalcy as redemption pressure has eased
considerably and inflows have started to come in, said Mr A.P. Kurian, Chairman,
Association of Mutual Funds in India. The mutual fund industry has borrowed close to Rs
20,000 crore from RBI, out of which about Rs 9,000 crore has been paid back. While the
borrowing was much less than the limits provided by RBI, the announcement of the
measures was made at the most appropriate time. While banks were not willing to lend,
RBI indicated to the banks and corporates that the Government would lend support to the
mutual fund industry, which helped improve the scenario, according to the fund
managers.

Prudential, DLF get in-principle nod for fund unit

Most valuable real estate firm, DLF Ltd, and American life insurer Prudential Financial
Inc (PFI) said they have an in-principle regulatory approval for a mutual fund venture
formed in December. The fund venture, DLF Pramerica Asset Managers Pvt Ltd, is
headed by Vijay Mantri, who joined in April from the Indian fund unit of Deutsche Bank.
DLF Pramerica joins more than 20 firms looking to break into the Indian fund industry,

30
which saw its assets grow more than four-fold to 5.5 trillion rupees in five year ending
2007.

PSU’s 30% surplus flows into MFs under Scanner

The government will soon review its policy of allowing PSUs to invest 30% of their
surplus in equity-linked public sector mutual funds. The proposal has been moved by the
department of expenditure in the ministry of finance after some companies started
withdrawing their investments from all types of mutual funds following the market
meltdown. The government may come up with new guidelines that will specify the
percentage of the surplus to be invested in equity-linked mutual funds, a source in the
government said. The proposal is being considered by various government agencies and
PSUs. The urgency for the review is felt as huge cash reserves are lying with most PSUs.
The government fears this could fall prey in the current market conditions in absence of
sound investment guidelines.

FMP exit to be made tougher

Ending widespread speculation, the Securities and Exchange Board of India (SEBI)
confirmed that it would make early withdrawals from Fixed Maturity Plans (FMPs)
tougher, a move that is expected to solve mutual fund's liquidity problems. SEBI sources
confirmed that new FMP schemes would have clauses that make withdrawals before
maturity difficult. FMPs faced severe redemption pressures in October. According to
October-end data, the average assets under management (AAUM) of FMPs stood at Rs
127,080 crore, down Rs 10,718 crore in a single month. Over 25 per cent of the entire
AAUM of the mutual fund industry is in this one product. According to fund managers,
SEBI is seeking to put a regulatory framework in place for these products. In the past
three years, FMPs were doing fairly well because the interest rate was on the rise. Some
schemes were even offering upto 12 per cent last month.

31
 FUNDZ THIS MONTH
Average AUM as at the end of October-2008 (Rs in Cores)
Mutual Fund Name Average Equity & Debt & MIP Equity Debt
AUM Balance (%) (%)
ABN AMRO MF 7277.75 455.44 6822.31 6.26 93.74
AIG Global Investment 1688.92 918.67 770.25 54.39 45.61
Group MF
Baroda Pioneer MF 42.87 36.32 6.55 84.72 15.28
Benchmark MF 3412.92 2738.13 674.79 80.23 19.77
Bharati AXA MF 470.18 6.26 463.92 1.33 98.67
Birla sun life MF 34203.28 5284.62 28918.66 15.45 84.55
Canara Robeco MF 3985.21 451.05 3534.16 11.32 88.68
DBS Chola MF 1193.93 175.13 1018.80 14.67 85.33
Deutsche MF 8373.52 342.90 8030.62 4.10 95.90
DSP Black Rock MF 14868.78 8382.98 6485.80 56.38 43.62
Edelweiss MF 227.99 0.00 227.99 0.00 100.00
Escorts MF 191.00 176.26 14.80 92.25 7.75
Fidelity MF 6484.36 4939.28 1545.08 76.17 23.83
Franklin MF 22193.70 9532.19 12661.51 42.95 57.05
HDFC MF 45479.37 13695.71 31783.66 30.11 69.89
HSBC MF 12632.87 2695.22 9937.65 21.33 78.67
ICICI Prudential MF 39208.96 9348.19 29860.77 23.84 76.16
IDFC MF 10260.32 2023.20 8237.12 19.72 80.28
ING MF 44468.07 530.79 3937.28 11.88 88.12
JM Financial MF 8075.65 2380.85 5694.80 29.48 70.52
JP Morgan MF 1879.08 867.56 1011.52 46.17 53.83
Kotak Mohindra MF 15121.87 2974.13 12147.74 19.67 80.33
LIC MF 13186.65 2095.56 11091.09 15.89 84.11
Lotus MF 5457.70 632.11 4825.59 11.58 88.42
Mirae Aseet MF 1004.18 151.49 852.69 15.09 84.91
Morgan Stanley MF 2155.12 2155.12 0.00 100.00 0.00
Principal MF 6995.33 2171.48 4823.85 31.04 68.96
Quantum MF 59.84 31.18 28.66 52.10 47.90
Reliance MF 71093.71 22636.88 48456.83 31.84 68.16
Sahara MF 171.32 45.81 125.51 26.74 73.26
SBI MF 24727.00 11381.49 13345.51 46.03 53.97

32
Sundaram BNP Paribas 10574.26 6249.01 4325.25 59.10 40.90
MF
Tata MF 16999.87 5119.42 11880.45 30.11 69.89
Taurus MF 338.78 170.28 168.50 50.26 49.74
UTI MF 38283.63 19800.37 18483.26 51.72 48.28
Total of above MF 432788.00 140595.02 292192.98 32.49 67.51

MF INDUSTRY AUM
Average AUM as at the end of October-2008 (Rs in Crores)
Mutual Average Average Absolute % Average Absolute %
Fund AUM AUM change change AUM change change
Name Sep- Oct- over a over a Oct-2007 over a over a
2008 2008 month month year year
ABN 9123.47 7277.75 -1845.72 -20.23 7807.47 -529.73 -6.78
AMRO
AIG 3025.69 1688.92 -1336.77 -44.18 3188.48 -1499.56 -47.03
Investment
Baroda 55.64 42.87 -12.77 -22.95 104.42 -61.55 -58.94
pioneer
Benchmark 3904.66 3412.92 -491.74 -12.59 6818.34 -3405.42 -49.94
Bharati 470.49 470.18 -0.31 -0.07 NA NA NA
AXA
Birla Sun 37595.36 34203.28 -3392.08 -9.02 30053.27 4105.01 13.81
Life
Canara 6006.26 3985.21 -2021.05 -33.65 2803.09 1182.12 42.17
Robeco
DBS Chola 1603.41 1193.93 -409.47 -25.54 4803.86 -3609.92 -75.15
Deustche 11693.67 8373.52 -3320.15 -28.39 12755.28 -4381.76 -34.35
DSP 18512.11 14868.78 -3643.33 -19.68 17832.62 -2963.84 -16.62
BlackRock
Edelweiss 301.95 227.99 -73.96 -24.49 NA NA NA
Escorts 211.27 191.00 -20.27 -9.59 160.94 30.06 18.68
Fidelity 7706.13 6484.36 -1221.76 -15.85 11388.87 -4904.50 -43.06
Franklin 28568.77 22193.70 -6375.07 -22.31 32146.97 -9953.27 -30.96
HDFC 51998.29 45479.37 -6518.91 -12.54 45064.12 415.25 0.92
HSBC 15532.82 12632.87 -2899.95 -18.67 20257.63 -7624.76 -37.64
ICICI 49803.52 39208.96 -10594.5 -21.27 55780.06 -16571.1 -29.71
Prudential 6 0
IDFC 11871.92 10260.32 -1611.61 -13.57 16210.77 -5950.45 -36.71
ING 6636.14 4468.07 -2168.07 -32.67 9383.38 -4915.31 -52.38
JM 10446.91 8075.65 -2371.26 -22.70 7422.20 653.45 8.80
Financial
JP Morgan 2400.29 1879.08 -521.21 -21.71 1951.09 -72.00 -3.69
Kotak 19065.01 15121.87 -3943.14 -20.68 21466.33 -6344.46 -29.56

33
Mohindra
LIC 16168.41 13186.65 -2981.75 -18.44 14391.94 -1205.29 -8.37
Lotus 7937.07 5457.70 -2479.36 -31.24 7104.35 -1646.64 -23.18
Mirae 2309.83 1004.18 -1305.65 -56.53 NA NA NA
Aseet
Morgan 2844.85 2155.12 -689.72 -24.24 3867.33 -1712.21 -44.27
Stanley
Principal 9944.28 6995.33 -2948.95 -29.65 15902.12 -8906.79 -56.01
Quantum 69.43 59.84 -9.59 -13.82 65.41 -5.57 -8.52
Reliance 86494.46 71093.71 -15400.7 -17.81 77300.74 -6207.03 -8.03
5
Sahara 181.54 171.32 -10.23 -5.63 195.88 -24.57 -12.54
SBI 29247.77 24727.00 -4520.77 -15.46 25701.50 -974.50 -3.79
Sundaram 12614.61 10574.26 -2040.36 -16.17 10807.41 -233.15 -2.16
BNP
Paribas
TATA 20777.75 16999.87 -3777.89 -18.18 21434.04 -4434.18 -20.69
Taurus 408.15 338.78 -69.37 -17.00 362.19 -23.42 -6.47
UTI 44623.19 38283.63 -6339.55 -14.21 48518.78 -10235.1 -21.10
5

Category wise AUM as on 31st October 2008

Income
Equity
ELSS
Balanced
FOF Overseas
Liquid/ Money Market
Gilt
Gold/ Other ETFs

Market Condition:
April 2008- October 2008 October 2008

MF Sales Redemption Net Sales Redemption Net

Category Sales Sales
Income 721181 754106 -32925 47139 99959 -52820
Equity 22034 20108 1926 1965 2671 -706
Balanced 2017 1869 148 164 258 -94
Liquid / 2303002 2322410 -19408 284799 281543 3256
Money

34
Market
Gilt 5530 2892 2638 4893 1168 3725
ELSS 1707 195 1512 181 41 140
Gold ETF 228 64 164 5 40 -35
Other ETFs 4925 4304 621 430 678 -248
FOF 1528 524 1004 44 55 -11
Overseas
Total 3062152 3106472 -44320 339620 386413 -46793

LOAD STRUCTURE
EQUITY FUND:
Equity Fund/ Growth Fund Min Entry Load Exit Load
Amt.
Rs
DSP ML Equity/ Top 100 Equity/T.I.G.E.R. 5000 2.25% for < 5 1% upto 6 months,
Fund/ Franklin India Flexi Cap/ Templeton Crs , 0.50% for 6 to12
India Growth Fund/ Franklin India Equity Nil for>= 5 Crs months,
Income Fund/ Prima Plus/ Opportunities/ Nil after 12
Franklin India Blue Chip/ Fidelity Equity months.
Fund
HDFC Equity Fund/ Capital Builder/ Premier 5000 2.25% for < 5 1% upto 1 year for
Multi Cap/ HDFC Growth Crs, < 5 Crs,
Nil for>=5Crs Nil for >= 5 Crs
HSBC Equity Fund/ India Opportunities/ 10,000 2.25% for < 5 0.50% for <5 Crs
Mid Cap/ HSBC Advantage Fund Crs, upto 6 months.
Nil for>=5Crs
ING Select stock Fund/ Domestic 5000 2.25% for < 1 Cr 1% upto 6 month
Opportunity/ ING Mid Cap(2000)/ Nifty Plus Nil for >= 1 Cr for < 1 Cr,
0.50% between 6
to1 year for
>=1 Cr
Kotak 30/ Mid Cap/ Contra/ Opportunities/ 5000 2.25% for < 5 1% upto 1 year for
Kotak Global India Crs, < 5 Crs,
Nil for>=5Crs Nil for >= 5 Crs
LIC MF Equity/ growth Fund 2000 2.25% for < 1 Cr Nil
LIC Opportunities Fund 5000 Nil for >= 1 Cr
ICICI Pru Discovery/ Emerging Star/ 5000 2.25% for < 5 1% upto 6 month
Dynamic/ Power/ Banking & Fin Services Crs, for < 5 Cr,
Nil for>=5Crs 0.50% between 6
to 1 year for
>= 5 Crs
ICICI Pru Growth Plan 5000 Do Nil
Reliance Growth/ Vision/ Equity 5000 2.25% for <2 1% upto 1 year
Opportunities/ Equity Advantage Crs, < 5 Crs,
1.25% for >=2 Nil for >=5 Crs.

35
 Crs &< 5 Crs,
Nil for >=5 Crs
Reliance NRI Equity Fund 5000 3% for < 2 Crs, Nil
2% for >= 2 Crs
&<5 Crs.
SBI Magnum Equity Fund/ Multiplier Plus/ 5000 2.25% for < 5 1% upto 6 month
Global/Mid Cap/ Multi Cap/ Blue Chip Fund Crs, for < 5 Cr,
Nil for>=5Crs. 0.50% between 6
to 1 year

UTI Dynamic Equity/ Dividend Yield/ UTI 5000 2.25% for < 2 Nil
Contra/ Large Cap/ Equity/ Master Plus/ Crs,
Master share/ UTI India Advantage Equity Nil for>=2Crs
Tata Growth Fund 5000 2.25% for < 5 Nil
Crs,
Nil for>=5Crs
Tata Mid Cap/ Contra/ dividend Yield/ 5000 2.25% for < 2 Nil
Equity Manager Crs,
Nil for>=2Crs
Tata Equity Opportunities Fund 5000 2.25% for < 2 1% upto 6 months
Crs, for <1 Cr
Nil for>=2Crs
Birla Sun Life Equity/ Frontline Equity/ Mid 5000 2.25% for < 5 1% upto 1 year for
Cap/ Top 100/ Birla Advantage/ Dividend Crs, <5 Crs,
Yield/ India Opportunities Nil for>=5Crs Nil for >= 5 Crs.
ABN AMRO Equity/ Opportunities Fund/ 5000 2.25% for < 5 1% upto 1 year for
Div Yield Crs, <5 Crs,
Nil for>=5Crs Nil for >= 5 Crs

Technology Fund Min Entry Load Exit Load

Amt. Rs.
Birla Sun Life New 5000 2.25% for < 5Crs 1% upto 1 year for<5 Crs,
Millennium Nil for >=5 Crs Nil for >= 5 Crs
DSP ML Tech 5000 2.25% for < 5Crs 1% upto 6 months,
0.50% between 6M to 12M,
Nil after 12 months.
Franklin Infotech 5000 2.25% for < 5Crs 1% for <5 Crs upto 6 months,
0.50% between 6M to 12M,
1% for >=5 Crs upto 1 year
Kotak Tech 5000 2.25% for < 5Crs 1% for <5 Crs upto 1 year,
Nil after >=5 Crs.
ICICI Pru Technology 5000 2.25% for < 5Crs Nil
Nil for >=5 Crs

SBI Magnum IT 2000 2.25% for < 5Crs 1% for <5 Crs upto 6 months,
Nil for >=5 Crs 0.50% between 6M to 12M.

36
UTI India Adv equity 5000 2% for < 25 lakhs, Nil
Fund 0.50% for >=25
lakhs & <2 Crs,
Nil for >=2 Crs

Tata Service Industries 5000 2.25% for < 2Crs 1% upto 6 months for <2 Crs
Fund Nil for >=2 Crs

Pharma/ FMCG/ Min Entry Load Exit Load

Others Amt. Rs.
Birla Sun Life Basic 5000 2.25% for < 5Crs 1% upto 1 year for <5 Crs,
India/ Buy India/ Birla Nil for >=5 Crs Nil for >=5 Crs
MNC
Franklin FMCG/ Pharma 5000 2.25% for < 5Crs 1% for <5 Crs upto 6 months,
0.50% between 6M to 12M,
1% for >=5 Crs upto 1 year.
Kotak MNC 5000 2.25% for < 5Crs 1% upto 1 year for <5 Crs,
Nil for >=5 Crs.
ICICI Pru FMCG 5000 2.25% for < 5Crs, Nil
Nil for >=5 Crs

Reliance Banking 5000 2.25% for <2 Crs, 1% upto 1 year for <5 Crs,
Fund/Diversified Power/ 1.25% for >=2 Crs Nil for >=5 Crs
Pharma/ Media & & <5 Crs,
Entertainment Nil for >=5 Crs
SBI Cotra/ FMCG/ 2000 2.25% for < 5Crs 1% for <5 Crs upto 6 months,
Pharma/ Emerging Nil for >=5 Crs 0.50% between 6M to 12M,
Business Nil for >=5 Crs.

Tata life science & Tech 5000 2.25% for < 2Crs 1% upto 6 months for <2 Crs.
Nil for >=2 Crs

Index Fund Min Amt. Entry Load Exit Load

Rs
Birla Sun Life Index Fund 5000 Nil 1.00% upto 15 days
Franklin India Index Fund 5000 Nil 1.00% upto 30 days
HDFC Index Fund 5000 Nil 1.00% upto 1 year for =< 5
lacs, Nil for > 5 lacs
LIC MF Index Fund 2000 2.25% for < 1 Cr 0.50% upto 180 days
Principal Index Fund 5000 2.25% for <1 Cr 1.00% upto 182 days
Nil for >= 1 Cr

37
ICICI Pru Index Fund 5000 1.00% Nil
SBI Magnum Index Fund 5000 0.50% for =< Nil
50 lacs,
Nil for > 50 lacs
Tata Index Fund 5000(A) 1.00% (A) Nil
1000000(B) Nil(B) Nil
UTI Master Index/ Nifty 5000 Nil 1.00% upto 365 days for
Index Fund <1 Cr
1.00% upto 7 days for >=1
Cr

ELSS/ Tax Savings Fund Min Entry Load Exit Load

Amt. Rs
ABN AMRO Tax Advantage 500 2.25% for <5 Crs, Nil
Nil for >=5 Crs
Birla Sun Life tax relief/ Birla 500 2.25% for <5 Crs, Nil
Equity Plan Nil for >=5 Crs
DBS Chola Tax Saver 500 2.25% for <2 Crs, Nil
Nil for >=2 Crs
Franklin India Tax shield 500 2.25% Nil
Franklin India Index 500 1.00% Nil
Fidelity Tax Advantage 500 2.25% for <5 Crs, Nil
Nil for >=5 Crs
HDFC Long Term Advantage/ Tax 500 2.25% for <5 Crs, Nil
Saver Nil for >=5 Crs
HSBC Tax Saver 500 2.25% for <1 Crs, Nil
Nil for >=1 Crs
ING Tax Savings 5000 2.25% for <1 Crs, CDSC of 1%
Nil for >=1 Crs upto 6M, 0.50%
between 6M to
12M
LIC MF Tax Plan 500 2.25% Nil
Kotak Tax Saver 500 2.25% for <5 Crs, Nil

ICICI Pru Tax Plan 500 2.25% for <5 Crs, Nil
Nil for >=5 Crs
Reliance Tax saver 500 2.25% for <2 Crs, 1.25% Nil
for >=2 Crs & < 5 Crs,
Nil for >=5 Crs
SBI Tax Gain 500 2.25% for <5 Crs, Nil
Sundaram Tax Saver 500 2.25% for <2 Crs, Nil
Nil for >=2 Crs
Tata Tax saving 500 2.25% for <2 Crs, Nil
Nil for >=2 Crs
Tata Tax Advantage-1 500 2.00% Nil

38
DEBT FUND:

Income Fund Min Amt. Rs Exit Load

ABN AMRO Flexi Debt Fund 5000 CDSC: 0.50% upto 6 M for <5
Crs, Nil for >=5 Crs
Birla Sun Life Income Fund 5000 1% upto 365 days for <=1 Cr
Nil for >=1 Crs
Burls sun life Income Plus 5000 0.75% upto 180 days for <10
lacs, Nil for >=10 lacs
Birla sun Life Dynamic Bond fund 5000 0.50% upto 60 days
DSP BlackRock Bond /Strategic Bond 5000 0.50% upto 6 M for <10 lacs
Nil for >=10 lacs
IDFC Super saver Income-Medium term 5000 Nil
Plan/IDFC Dynamic bond Fund
HDFC Income Fund 5000 For <5 Crs: 2% upto 1 yr,
1% between 1yr & 2 yr.
For>=5 Crs: 0.50% upto 3 M
0.25% between 3M&6M
HDFC High Interest Fund 5000 0.50% upto 6M for <10 lacs,
HSBC Income Fund Investment plan 10000 Nil for >=10 lacs
ICICI Pru Income Plan 5000 For < 2Crs: 2% upto 6M,
1.50% between 6M & 12M,
1% between 1 yr & 18M,
Nil after 18M & >=2 Crs
ING Income plan 5000 0.50% upto 6M for <10 lacs,
Nil for >=10 lacs
Kotak Bond Deposit 5000 0.50% upto 6M
Kotak Bond Regular 500000 Nil
LIC MF Bond Fund 5000 0.50% upto 6M for <=50lacs,
0.25% upto 3M between 50lacs
& 5 Crs,
0.10% upto1M for >5Crs
Reliance Medium Term Plan 5000 0.15% upto 1 days
SBI magnum Income Fund 2000 0.50% upto 6M for <50lacs,
Nil for >=50 lacs
Tata Income Fund 5000(Gr) 2% upto 1 yr <=3 lacs
25000(QD) Nil for >3 lacs

39
Sundaram BNP Paribus Bond Saver 5000 0.50% upto 6M for <=10 lacs
Nil for > 10 lacs
Templeton India Income fund 10000 0.50% upto 6M for <10 lacs
0.25% upto 3M for >=10 lacs
UTI Bond Fund 1000(Gr) 0.50% upto 6M for <10 lacs,
20000(Income) Nil for >=10 lacs

Gilt Fund ( Short Term & Long Term) Min Amt. Exit Load
Rs
Birla Sun Life Gilt ST/ Gilt LT/ Gilt Plus-Liquid/ 5000 Nil
Gilt Plus-Regular
IDFC G Sec ST/ IDFC G Sec- Investment Plan/ 5000 Nil
G Sec-PF Plan
HDFC Gilt-ST/ Gilt- LT 5000 Nil
ICICI Prudential Gilt- Treasury 5000 Nil
ICICI Pru Gilt-Treasury PF 5000 0.80% upto 365 days
ICICI Pru Gilt- Investment plan 5000 0.75% upto 1 yr for <2
Crs, Nil for >=2 Crs
ICICI Pru Gilt-Investment PF 5000 0.60% upto 365 days
Kotak Gilt Savings/ Kotak Gilt Investment 5000 Nil
Reliance Gilt Securities 10000 0.80% upto 1 yr
SBI Magnum Gilt ST 25000 CDSC: 0.15% upto 15
days
SBI Magnum Gilt LT Regular 25000(Gr) 0.25% upto 90 days
100000(D)
Tata Gilt Sec-Short Maturity/ Tata Gilt Sec- 10000 Nil
regular Plan
Tata Gilt Sec- High Investment Plan 50000 1% upto 365 days,
Nil after 1yr
Templeton India G Sec- Long Term/ India G Sec- 5000 Nil
Treasury Plan
Templeton India G Sec- Composite Plan 10000 0.50% upto 6M for <10
lacs, Nil for >=10 lacs

Monthly Income Plan Min Amt. Rs Exit Load

ABN AMRO MIP 5000(Gr) CDSC: 1% upto 12 months,
20,000(MD & Nil after 1 yr
QD)
Birla Sun Life MIP 5000(Gr) 0.60% upto 90 days for <=10 lacs,
25,000 Nil for >10 lacs
Birla Sun Life MIP II- Saving 5 5000(Gr) Nil
Plan
Birla sun Life MIP II- Wealth 25 25,000(MD) 1% upto 12 months,

40
Plan
DBS Chola MIP
FT India Life Stage FOF 20s Plan
FT India Life Stage FOF 30s Plan
FT India Life Stage FOF 40s Plan
FT India Life Stage FOF 50s Plus
HDFC MIP Short Term
HDFC MIP Long Term
Nil after 1 yr
5000(Gr) 0.50% upto 6M for <=10 lacs,
10,000(Div.) Nil for >10 lacs
5000 Entry- 2.00%, Exit- Nil
Entry-1.50%, Exit- Nil
Entry -1.00%, Exit- Nil
Entry -0.50%, Exit- Nil
5000(Gr&QD) 0.50% upto 6M for <=10 lacs,
0.25% upto 3M for >10 lacs
25,000(MD) 1% upto 1 yr for <5 Crs
Nil for >=5 Crs

HSBC MIP Reg. & Savings 10,000(Gr&QD) 1% upto 1 yr,

25,000(MD) Nil after 1 yr
ICICI Prudential MIP 5000(Gr) 0.50% upto 6M for <=10 lacs,
25,000(Div.) Nil for >10 lacs
LIC MF MIP 5000(Gr) 0.50% upto 6M for <=25 lacs
15,000(QD) 0.25% upto 3M for >25 lacs
25,000(MD)
Reliance MIP 10,000(Gr&QD) 0.75% upto 3M for <=25 lacs
25,000(MD) 0.60% within 3M-6M
0.50% within 6M-9M
0.25% within 9M-12M
0.10% upto 7 days for >25 lacs
SBI Magnum MIP 10,000 0.50% upto 6M for <=50 lacs
Nil for >50 lacs
Kotak Income Plus 5000 1% upto 1 yr for <=25 lacs
Nil for >25 lacs
Sundaram BNP Paribus MIP 5000 0.50% upto 6M for <= 10 lacs
Nil for >10 lacs
Tata MIP 10,000(Gr) 0.50% upto 180 days for <1 Cr
25,000(QD&MD Nil for >=1 Cr
)
UTI Monthly Income 1000(Gr) 0.50% upto 180 days for <10 lacs
10,000(Div.) Nil for >=10 lacs

Liquid Fund Min Amt. Exit Load

Rs
ABN AMRO Money Plus Fund regular 10,000 0.15% upto 15 days
ABN AMRO Money Plus fund Instit. 1 crore
Birla Sun Life Liquid Plus – Retail 10,000 Nil
DSP ML Liquid Plus- Regular 25,000 Nil
DSP ML Liquid Plus – Instit. Plan 5 crores
HDFC CMF- Savings Plus Plan- Retail 5000 Nil
HDFC CMF – Savings Plus Plan – Wholesale 1 crore
HSBC Liquid Plus- Regular 10,000 0.10% upto 7 days
HSBC Liquid Plus-Instit. 50 lacs
HSBC Liquid Plus- Instit. Plus 5 crores

41
ICICI Prudential Flexi Income Plan 5000 Nil
Kotak Flexi Debt Scheme 5000 0.15% upto 1 days
ING Vysya Liquid Plus Fund- Regular 5000 0.10% upto 10 days
ING Vysya Liquid Plus Fund- Instit. 1 crore
Reliance Liquid Plus Fund- Retail Plan 1 lac 0.15% upto 15 days
Reliance Liquid Plus Fund- Instit. 1 crores
SBI Short Horizon Fund- Liquid Plus Retail 10,000 0.10% upto 3 days
SBI Short Horizon Fund- Liquid Plus Instit. 50 lacs

Sundaram BNP Paribus Liquid Plus- Reg. Gr. 10,000 Nil

Sundaram BNP Paribus Liquid Plus- Instit. 1 crores

BALANCED FUND:
Balance Fund Min Amt. Entry Load Exit Load
Rs
Birla Balance/ Birla Sun 5000 2.25% for <5 Crs, 1% upto 1 yr for <5 Crs,
Life 95 Nil for >=5 Crs Nil for >=5 Crs
DSP ML Balanced 5000 2.25% for <5 Crs, 1% upto 6M, 0.50%
Nil for >=5 Crs between 6M & 12M
FT India Balanced 2000 2.25% for <5 Crs, For <5Crs: 1% upto 6M,
Nil for >=5 Crs 0.50% between 6M &
12M,
For >=5 Crs, 1% upto
1yr
HDFC Balance/ HDFC 5000 2.25% for <5 Crs, 1% upto 1 yr for <5 Crs,
Prudence Nil for >=5 Crs Nil for >=5 Crs
ING Vysya Balanced 5000 2.25% for <1 Crs, 1% upto 6M for <1 Cr
Nil for >=1 Crs 0.50% between 6M &
1yr
Kotak Balance 5000 2.25% for <5 Crs, 1% upto 1 yr for <5 Crs,
Nil for >=5 Crs Nil for >=5 Crs
LIC MF Balance Fund 1000 2.25% upto 1 Cr Nil
ICICI Prudential Balanced 5000 2.25% for <5 Crs, For <5Crs: 1% upto 6M,
Fund Nil for >=5 Crs 0.50% between 6M &
12M,
Nil for >=5 Crs
Reliance Regular Savings 500 2.25% for <2 Crs For <5Crs, 1% upto 1yr,
Hybrid plan 1% for>=2 Crs & <5 Nil for >=5 Crs
Crs
SBI Balance Fund 1000 2.25% for <5 Crs, For <5Crs: 1% upto 6M,
Nil for >=5 Crs 0.50% between 6M &
12M,
Nil for >=5 Crs
Tata Balance 5000 2.25% for <2 Crs, 1% upto 6M for <2 Crs
Nil for >=2 Crs
Templeton India Pension 5000 2.25% 3% before age of 58 yrs
Plan

42
 FUNDS SNAPSHOT
EQUITY FUND:
Large Cap Fund:
Large Cap As On 31st % Change over a
Fund October month
2008
Scheme Name Bench- Expense Corpus NAV Corpus NAV Top
mark Ratio % in Crs in RS Holding
Birla Sun Life BSE 30 2.30% 257.57 80.17 -21.91% -23.09% RIL
Advantage fund (6.27)
Birla Sun Life NSE 50 2.50% 241.03 11.66 -19.05% -18.06% RIL
Top 100 Fund (7.28)
DBS Chola BSE 30 2.50% 10.29 19.41 -27.89% -27.76% RIL
Growth Fund (8.69)
DSP BlackRock BSE 100 2.07% 884.08 50.81 -12.10% -19.53% HUL
Top100 Fund (6.75)
Franklin India BSE 30 1.89% 1515.67 100.34 -21.36% -21.62% Airtel
Blue chip Fund (9.17)
Franklin India NSE 50 1.96% 1051.35 109.08 -21.70% -21.93% Airtel
Prima plus Fund (9.17)
HDFC Top 200 BSE 200 1.88% 1908.55 92.32 -18.66% -22.26% Infosys
Fund (6.19)
HSBc Equity BSE 200 2.00% 956.43 58.60 -19.43% -21.29% RIL
Fund (8.24)
ICICI Pru NSE 50 2.33% 240.77 68.98 -22.45% -22.18% RIL
Growth Plan (9.50)
ICICI Pru NSE 50 1.83% 2524.61 16.23 -26.53% -26.79% RIL
Infrastructure (8.72)
Plan Fund
ICICI Pru Power NSE 50 2.15% 514.84 52.92 -24.68% -24.54% Airtel
Plan Fund (9.17)
Kotak 30 Fund NSE 50 2.18% 564.17 55.67 -20.61% -23.41% RIL
(7.06)

43
Principal Large CNX 2.31% 246.44 12.16 -23.77% -24.71% Bharati
Cap Fund Mid Cap Tele
(6.63)
Reliance Vision BSE 100 1.83% 2408.74 133.55 -20.56% -20.29% Divis
Fund Lab(7.34
SBI Bluechip BSE 100 2.50% 694.70 7.66 -20.82% -20.87% RIL
Fund (5.51)
SBI Magnum BSE 100 2.50% 211.62 20.28 -22.78% -23.67% BHEl
Equity (7.28)
UTI Leadership NSE 50 2.08% 605.60 8.60 -20.87% -21.46% RIL
Equity Fund (6.81)
UTI BSE 100 2.28% 331.00 11.93 -17.73% -18.40% ITC
Opportunities (5.27)

Mid Cap Fund:

Mid Cap As on 31st October % Change over a
2008 Month
Scheme Bench- Expense Corpus NAV in Corpus NAV Top
Name mark Ratio % in Crs Rs Holding
ABN AMRO BSE 30 2.50% 7.10 7.94 -20.76% -17.38% Castrol
Div Yield (8.26)
Birla Sun Life CNX 2.22% 332.05 45.27 -26.64% -26.69% Union
Mid Cap Mid Cap Bank
(4.15)
Birla Sun Life CNX 2.43% 100.48 81.36 -21.71% -21.36% CRISIL
MNC MNC (6.45)
Index
DBS Chola CNX 2.48% 11.69 16.23 -29.32% -29.135 Divis
Mid Cap Mid Cap Lab(6.57
100
DSP CNX 1.98% 475.61 6.61 -25.24% -24.02% Thermax
BlackRock Mid Cap (3.57)
Small & Mid
HSBC Mid CNX 2.37% 105.95 10.69 -30.09% -29.21% Axis
Cap Equity Mid Cap Bank
(4.25)
ICICI Pru NSE 50 2.33% 195.01 16.27 -25.02% -25.81% Cadilla
Discovery Heathcare
(9.34)
ING Contra BSE 100 2.50% 6.63 7.76 -26.90% -26.45% ICICI
Bank
(5.47)
ING Mid Cap CNX 2.50% 13.73 9.58 -30.59% -30.53% Thermax
Mid Cap (4.11)
100
Kotak Mid CNX 2.42% 80.95 10.96 -29.86% -28.37% Asian
Cap Mid Cap Paints
(5.29)

44
Reliance BSE 100 1.81% 3377.23 218.28 -22.13% -22.34% Divis
Growth (5.06)
Sahara Mid CNX 2.50% 5.17 12.88 -24.53% -24.28% Colgate
Cap Mid Cap (3.62)
SBI Magnum CNX 2.50% 174.65 10.93 -33.95% -34.04% Lupin
Mid Cap Mid Cap (5.93)
100
Tata Growth BSE 30 2.50% 38.42 20.70 -25.89% -26.05% Lupin
(5.43)
Tata Mid Cap CNX 2.38% 56.68 8.15 -29.60% -29.19% Colgate
Mid Cap (6.23)
Sundaram BSE Mid 1.94% 959.21 61.30 -24.84% -23.84% Canara
BNP Paribus Cap Bank
Mid Cap (3.40)

UTI Mid Cap CNX 2.34% 175.97 13.65 -25.97% -24.21% Rallis
Mid Cap India
100 (7.15)
UTI MNC CNX 2.42% 103.82 26.19 -16.34% -15.73% Maruti
MNC Suzuki
Index (7.59)

Index Fund:
Index Fund As On 31st October % Change over a
2008 Month
Scheme Bench- Expense Corpus NAV in Corpus NAV Top
Name mark Ratio % in Crs Rs Holding
Birla Sun Life Nifty 1.50% 25.36 28.86 -16.08% -26.55% 8.64
Index
Franklin India Nifty 1.00% 58.84 22.84 -17.12% -26.39% 10.99
Index
HDFC Index Nifty 1.24% 21.99 26.31 -15.33% -24.96% 11.24
ICICI Pru Nifty 1.25% 34.45 26.58 -6.66% -26.04% 7.14
Index
Nifty Index Nifty 2.50% 6.27 14.68 -30.79% -25.48% 11.41
LIC MF Index Nifty 1.50% 187.65 16.85 -26.07% -26.39% 11.20
SBI Magnum Nifty 1.50% 13.93 24.82 -11.33% -26.09% 10.19
Index
HDFC Index Sensex 1.23% 46.15 84.81 -11.04% -24.65% 12.83
LIC MF Index Sensex 1.50% 25.90 18.53 -24.99% -23.87% 14.33

ELSS/ Tax Saving:

ELSS/ Tax As on 31st October % Change over a
Saving 2008 Month
Scheme Bench- Expense Corpus NA Corpus NAV Top
Name mark Ratio % (in Crs) ( in Rs) Holding
ABN AMRO BSE 200 2.44% 83.69 7.63 -22.71% -22.85% RIL
Tax (8.78)
advantage

45
Birla Sun Life BSE 2.44% 88.41 34.80 -22.84% -23.67% RIL
Tax Plan- Div Sensex (6.98)
DBS Chola BSE 2.49% 19.34 7.43 -26.80% -27.01% RIL
Tax saver Sensex (7.11)
DSP S&P 2.33% 334.60 7.98 -21.82% -23.12% RIL
BlackRock CNX (6.26)
Tax saver 500
Franklin India S&P 2.24% 384.76 100.03 -19.29% -20.36% Airtel
Tax Shield CNX (7.34)
500
HDFC Tax S&P 1.98% 952.64 99.12 -24.31% -25.29% ICICI
Saver CNX Bank(5.82)
500
HSBC Tax BSE 200 2.36% 165.87 7.36 -18.81% -19.30% RIL
Saver (6.26)
ICICI Pru Tax S&P 2.10% 493.62 58.07 -24.43% -24.92% RIL
Plan CNX (9.75)
Nifty
Kotak tax S&P 2.30% 273.65 9.37 -23.35% -24.74% Airtel
Saver CNX (4.18)
500
Reliance Tax BSE 100 1.91% 1310.09 9.90 -19.22% -18.38% ICICI
Saver Bank(5.75)
Sahara Tax BSE 200 2.50% 4.42 16.63 -19.49% -19.93% Maruti
Gain (3.83)
SBI magnum BSE 100 2.50% 2282.90 30.85 -21.84% -23.68% RIL
Tax Gain (4.97)
Tata Tax BSE 1.16% 91.79 27.33 -25.50% -25.39% RIL
Saving Sensex (4.66)
UTI Equity BSE 2.33% 218.55 21.52 -20.83% -21.89% Airtel
Tax Saving Sensex (6.13)

Sectoral Fund:
Sectoral As On 31st % Change over a
Fund October 2008 Month
Scheme Bench- Expense Corpus NAV Corpus NAV Top Holding
Name mark Ratio % (In Crs) (in Rs
Birla Sun BSE Tech 2.50% 46.74 10.89 -23.29% -22.77 Airtel
Life New % (13.89)
Mill
Franklin BSE IT 2.44% 89.08 28.81 -9.04% -8.71% Infosys
Infotech (49.63)
ICICI Pru BSE Tech 2.48% 52.12 6.74 -27.83% -27.76 Airtel
Technology % (11.31)
Kotak Tech BSE Tech 2.25% 14.27 4.60 -19.15% -19.16 Infosys
% (16.79)
Franklin ET 2.50% 35.00 21.68 -22.81% -22.38 Lupin Lab
Pharma Fund Pharma % (12.29
Reliance BSE 2.45% 79.77 17.87 -25.80% -19.94 Divis Lab

46
Pharma Fund Healthcare % (17.33)
Index
SBI magnum BSE 2.50% 19.95 17.87 -32.96% -32.64 Dishman
Pharma Healthcare % Pharma
Index (16.46)
UTI CNX 2.50% 43.29 17.61 -21.76% -21.56 Sun Pharma
Healthcare Healthcare % (20.55)
Pharma Index
Franklin ET 2.50% 20.02 29.68 -16.48% -16.54 Nestle
FMCG Brandex % India(15.93)
SBI Magnum BSE 2.50% 5.91 11.67 -14.47% -14.69 Nestle India
FMCG FMCG % (24.43)
Index
ICICI Pru CNX 2.50% 42.03 29.91 -19.42% -20.18 Asian Paints
FMCG FMCG % (16.83)
JM Auto BSE Auto 2.50% 4.42 11.48 -44.54% -25.16 Maruti
Sector % Udyog(14.96)
Reliance CNX 2.11% 641.55 37.44 -20.21 -19.91 SBI(14.54)
Banking Banks %
UTI Banking BSE 30 2.50% 73.53 17.07 -19.88 -18.75 ICICI Bank
% (15.18)

DEBT FUND:
Long Term Gilt:
Long Term As on 31st % Change over a
Gilt October 2008 Month
Scheme Name Date of Expense Corpus NAV Corpus NAV Avg.
Inception Ratio % (in Crs) (in Rs Maturity
(in yrs)
Birla Sun Life 31/10/99 1.50% 1.34 20.70 -2.90% 0.49% 0.01
Gilt LT
DBS Chola Gilt 29/03/00 1.00% 1.67 22.43 57.55% 13.57% NA
Investment
HDFC Gilt LT 25/7/01 0.65% 30.60 17.30 114.44% 1.59% 0.76
ICICI Pru Gilt 19/8/99 1.15% 144.01 28.13 34.68% 10.84% 9.74
Investment
ING Gilt 07/02/02 1.50% 0.52 13.24 1.96% -0.08% NA
Regular
Kotak Gilt 29/12/98 1.51% 25.94 27.27 14.83% 6.15% 14.71
Investment
Reliance Gilt 22/08/08 1.21% 49.37 10.94 44.10% 8.96% 10.94
SBI Magnum 30/12/00 1.38% 153.31 18.76 0.88% 1.24% 10.87
Gilt LT
Tata Gilt 06/09/99 1.60% 170.33 25.87 -5.32% 3.60% 7.15
Security LT

Short Term Gilt:

Short Term As on 31st % Change over

47
Gilt October 2008 a Month
Scheme Name Date of Expense Corpus NAV Corpus NAV Avg.
Inception Ratio % (in (in Rs Maturity
Crs) (in yrs)
Birla Sun Life 06/09/99 0.75% 1923.0 19.78 ------- 0.41% 0.01
Liquid Plus 3
HDFC Gilt ST 25/07/01 0.65% 62.73 15.06 ------- 1.41% 0.06
HSBC Gilt ST 05/12/03 1.00% 447.93 12.08 ------- 0.58% 0.01
ICICI Pru Gilt 19/08/99 1.10% 50.82 20.64 5.48% 3.05% 0.37
Treasury
Kotak Gilt 29/12/02 1.02% 637.11 20.26 ------- 0.70% 0.02
Saving
SBI Magnum 30/12/00 0.83% 107.62 16.98 2.45% 1.37% 3.72
Gilt ST

DSP BlackRock 29/09/99 0.95% 45.44 18.64 ------ 0.59% 0.03

G Sec Plan B
Principal G Sec 23/08/01 1.00% 97.80 15.09 9.95% 0.53% 0.01
Saving
Sundaram Gilt 29/04/01 1.28% 0.10 14.43 ------ 0.42% 0.003
Tata Gilt ST 03/04/05 1.11% 158.98 13.71 24.14% 1.86% 5.06
Templeton G 11/02/02 0.90% 60.45 15.46 12.93% 0.91% 0.20
Sec Treasury

Income Fund:
Income Fund As on 31st % Change over a
October 2008 Month
Scheme Name Date of Expense Corpus NAV Corpus NAV Avg.
Inception Ratio % (in Crs (in Rs Maturity
(in yrs)
ABN AMRO 23/09/04 1.39% 36.96 13.37 -36.46% 1.06% 4.31
Flexi Debt
Birla Sun Life 03/03/97 2.11% 125.12 30.22 -13.36% 0.57% 8.28
Income
Birla Sun Life 21/10/95 1.88% 344.70 35.01 -7.99% -0.65% 4.91
Income Plus
DSP BlackRock 29/04/97 2.24% 34.39 26.76 -4.47% 0.38% 1.91
Bond
DBS Chola 31/03/97 1.00% 6.48 24.68 8.00% 8.29% NA
Triple Ace
HDFC Income 11/09/00 1.00% 178.46 17.89 -1.93% -0.94% 7.52
HSBC Income 10/12/02 1.50% 22.53 13.76 -2.59% -0.51% 5.76
ICICI Pru 09/08/98 2.07% 205.50 24.76 -3.60% 1.27% 9.54
Income
ING Income 07/05/05 1.50% 26.90 21.00 38.45% -0.85% NA
JM Income 01/04/95 2.00% 17.65 28.86 -1.89% 0.00%% 2.00
Kotak Bond 25/11/99 1.67% 52.27 21.99 -3.17% 0.87% 5.28
Regular

48
Reliance 27/12/97 1.43% 119.63 26.14 16.83% 1.48% 9.79
Income
SBI Magnum 25/11/98 1.52% 50.84 20.44 0.55% 0.00% 3.99
Income
Tata Income 19/03/97 2.25% 35.15 27.58 8.99% 0.77% 3.16
Templeton India 01/01/97 1.36% 167.56 27.99 -7.71% -0.82% 1.01
Income
Sundaram Bond 12/11/97 1.98% 40.69 24.48 -0.34% -0.45% 3.87
Saver

Liquid Fund:
Liquid Fund As On 31st % Change over a
October 2008 Month
Scheme Date of Expense Corpus NAV Corpus NAV Avg.
Name Inception Ratio % (in Crs (in Rs Maturity
(in days
ABN AMRO 02/09/04 0.75% 134.39 12.71 -7.82% 0.95% 117
Overnight
Fund
ABN AMRO 21/10/05 0.69% 1340.84 12.54 -38.08% 1.05% 157
Money Plus
Birla Sun Life 16/06/97 0.32% 5637.78 22.90 13.70% 0.75% 95
Cash Plus
Birla sun Life 27/11/01 0.46% 3149.66 15.84 -40.96% 0.83% 237
Liquid Plus
DBS Chola 09/11/97 0.18% 449.89 17.10 -37.38% 0.88% NA
Liquid
HDFC Liquid 11/09/00 0.51% 4826.12 16.93 52.90% 0.77% 120
HSBC Cash 04/12/02 0.65% 957.98 14.25 -7.76% 0.64% 58
ICICI Pru 17/10/06 0.66% 1402.88 11.76 -49.47% 0.51% 91
Liquid
IDFC Cash 24/06/98 1.05% 12674.2 20.82 19.87% 0.77% 154
Fund 9
ING Liquid 02/07/01 0.75% 1393.37 15.32 16.08% 0.86% 312
Fund
ING Liquid 06/01/00 0.70% 517.47 17.95 -48.56% 0.84% NA
Plus
JM Liquid Plus 20/03/07 0.60% 1474.93 11.46 -24.13% 0.79% NA
Kotak Liquid 25/06/03 0.54% 12.35 13.50 -30.85% 0.67% 120
Reliance 25/10/00 0.40% 1633.84 16.68 -40.88% 0.85% 110
Liquid

49
Reliance 19/03/98 0.56% 2439.14 20.45 -0.73% 0.69% 142
Liquid
Treasury Fund
LIC MF Liquid 28/05/07 0.49% 1337.77 11.33 -59.92% 0.89% 224
Plus Fund
SBI Short 19/07/07 0.32% 2631.59 11.02 -5.60% 0.73% 172
Horizon Fund-
Liquid Plus
Tata Liquid 21/08/98 0.20% 4519.07 1970.5 29.69% 0.85% 121
Fund 6
Templeton 18/12/07 0.72% 488.24 10.80 -71.97% 0.75% 197
India Ultra
Short Bond

MIP/Monthly Income Plan:

MIP As on 31st % Change over % Exposure in Holding
October 2008 a Month
Scheme Expense Corpus NAV Corpus NAV Equity Debt Avg.
Name Ratio % in Crs (in Rs ( %) ( %) Maturity
(in yrs)
ABN AMRO 2.20% 59.19 12.75 -17.49 -2.07 8.98% 91.02% 3.16
MIP % %
Birla Sun 2.21% 97.70 19.42 -9.62% -2.61 7.99% 92.01% 2.28
Life MIP %
HDFC MIP 2.23% 82.52 12.94 -15.47 -3.86 11.16% 88.84% 1.77
ST % %
HSBC MIP 1.95% 119.75 14.04 -8.19% -3.57 8.46% 91.54% 3.81
Saving %
ING MIP 1.90% 3.20 12.26 -3.90% -3.69 15.20% 84.80% 0.003
%
Reliance 2.00% 185.78 14.49 -3.89% 0.76% 9.28% 90.72% 7.60
MIP
Principal 2.00% 61.37 16.40 -6.65% -3.81 9.89% 90.11% 1.97
MIP %
Tata MIP 2.00% 23.11 15.47 -4.03% -1.34 7.09% 92.91% 2.29
%
Templeton 1.90% 80.22 20.99 -0.62% -2.87 12.19% 87.81% 1.33
MIP %
DBS Chola 2.25% 22.32 16.14 -6.45% -2.36 4.57% 95.43% NA
MIP %
JM MIP 2.25% 9.60 13.39 -9.18% -3.25 9.85% 90.15% 0.91
%
DWS MIP 2.25% 7.38 13.43 -5.02% -2.18 6.23% 93.77% 2.63
%
Sundaram 2.06% 28.00 13.02 -5.88% -1.66 0.00% 100.00% 1.08
MIP %

50
BALANCE FUND:
Balance As On 31st % Change over % Exposure in Holding
Fund October 2008 a Month
Scheme Expense Corpus NAV in Corpus NAV Equity Debt Top
Name Ratio % in Crs Rs ( %) ( %) Holding
Birla Sun 2.49% 81.61 24.66 -12.45 -11.29 55.44% 44.56% E.I.D
Life Balance % % Pany
India
(5.26)
Birla Sun 2.41% 11.02 146.68 -15.78 -15.04 58.80% 41.20% Rallis
Life 95 % % India
(6.83)
DSP BR 2.09% 438.24 35.66 -16.68 -15.82 57.59% 42.41% HUL
Balance % % (4.16)

HDFC 2.24% 81.87 25.61 -18.88 -19.54 69.30% 30.70% Coro-

Balance % % mandal
Fert
(5.45)
ICICI Pru 2.28% 216.32 25.30 -20.54 -18.28 62.77% 37.23% RIL
Balance % % (7.12)
ING 2.50% 4.73 14.86 -18.45 -18.04 69.90% 30.10% RIL
Balance % % (5.45)
Kotak 2.50% 56.67 15.80 -16.67 -17.02 61.64% 38.36% RIL
Balance % % (5.10)
LIC MF 2.22% 22.98 36.82 -16.92 -17.68 45.75% 54.25% NTPC
Balance % % (7.95)
JM Balance 2.50% 19.50 13.75 -25.91 -25.64 47.30% 52.70% Balaram
% % pur
Chini
(6.85)
SBI 2.50% 302.96 28.18 -18.40 -18.18 66.75% 33.25% RIL

51
Magnum % % (4.98)
Balance
UTI Balance 2.07% 705.50 43.39 -16.55 -16.01 58.36% 41.64% RIL
% % (4.68)
Tata Balance 1.37% 160.14 40.92 -18.04 -18.14 72.23% 27.77% HDFC
% % Bank
(5.67)

Systematic Investment Plan

What is Systematic Investment Plan?
Under this plan Investors invest a specific amount for a continuous period, at regular intervals. By
doing this, the investor has the advantage of rupee cost averaging and also helps him save
compulsorily a fixed amount each month. When you opt for SIP, you automatically participate in
the market swings. Your amount of investment remaining the same, you buy more number of
units in a declining market and less number of units in a rising market so that you do not panic in
turbulent market conditions. As said earlier, SIP results in rupee cost averaging, which means
that, when you invest consistently the same amount at regular intervals, your average cost per unit
will always remain lower than the average market price, irrespective of how the market is - rising,
falling or fluctuating. Where as this will not be true for a one-time investment. An SIP investor
gets phenomenal rate of return compared to a one-time investor.
Anyone can enroll for this facility by starting an account with (minimum investment amount) and
giving 6/12 post-dated cheques of periodic investment based on one's convenience.
It is very easy to become a systematic investor. All you need to do plan your savings effectively
and set aside some amount of money every month for investing in a fund - ideally a diversified
equity fund or balanced fund, since SIP is a long-term investment plan. The procedure involved is
also very simple. All you need to do is, give post-dated checks to the fund house. There is another
advantage for the investor. He is at a liberty to enter or exit from the scheme whenever he wishes
to, depending on the market conditions. So, if you want to stay calm and sell smoothly in
turbulent times go for Systematic Investment Plans.

SIP INFORMATION:
Mutual Initial Date of Amt. for Min Entry Exit Load Auto
Fund Invest- Investment SIP no. Load Debit
Name ment For SIP Invest. Install- Facility
ment
ABN No 1st , 7th, 15th 500 12 2.25% 1% upto 6M Yes
AMRO or 25th
AIG MF No 1,7,14or21 1000 6 2.25% 1% upto 1yr Yes
Birla Sun No 1,7,10,14 1000 6 2.25% Nil Yes

52
Life MF 20, 21or 28
DBS No 5, 15 or 25 500 or 12 or 6 2.25% Nil Yes
Chola 1000
Deutsche No 7,15 or 21 500, 12 or 6 2.25% 0.50% upto 1 Yes
1000 or 4 yr
or1500
DSP MF No 1,7,14,or 21 1000 12 2.25% 1% upto 6M, Yes
0.50% bet.
6M & 1 yr
Fidelity No 1,10,15 or 500 or 12 or 6 2.25% Nil Yes
MF 25 1000
HDFC MF No 1,5,10,15 1000 6 2.25% 1% upto 1yr Yes
20 or 25
HSBC No 3,10,17or26 1000 12 2.25% 1% upto 1 yr Yes
ING MF No 1,10,15or27 1000 6 2.25% Nil Yes
JM MF No 1,5,10,15,20 500 or 12 or 6 2.25% 2.25% upto 1 Yes
or 25 1000 yr
Kotak No 1,7,14 or 21 1000 6 2.25% 1% upto 6M Yes
ICICI Pru No 1,7,10,15 1000 6 2.25% 1% upto 1 yr Yes
MF or 25
Mirae No 1,10,15,21 1000 6 2.25% 1% upto 1 yr Yes
Asset MF or 28
Principal No 1,5,15 or 25 500 6 2.25% Nil Yes
PNB MF
Reliance No 2,10,18 or 28 100, 500 6 or 12 2.25% Nil Yes
MF or 1000
SBI MF No 5,15 or 25 500 12 or 6 2.25% 1% upto 6M Yes
IDFC MF No Any date 1000 6 2.25% 1% upto 1 yr Yes
Sundaram No 1,7,14,20 or 250 or 20 or 2.25% 1% upto 1 yr Yes
BNP 25 500 10
Paribus
Tata MF No 1,7,10 or 20 500 or 12 or 6 2.25% 1% upto 2 yrs Yes
1000
Templeton No 1,7,10,20 or 500 or 12 or 6 2.25% Nil Yes
MF 25 1000

STP INFORMATION:
Mutual Min. Inv. in Exit Min Date of No. of Entry Exit Load
Fund Primary Load for Amt.to Invest- Install- Load For
Name Scheme Primary be trans. ment ment For Secondary
Scheme to secon- For STP for Secon- Scheme
dary starting dary
Scheme STP
ABN 25,000 Nil 1000 1,15 6 2.25% 1% upto
AMRO MF 1 yr
Birla Sun 6,000 Nil 1000 1,7,10, 8 2.25% Nil
Life MF 14,20,28

53
DBS Chola 25,000 Nil 1000 5,15, 6 or12 1.00% 1.25% upto
MF 25 2 yrs
Deutsche Normal Nil 1000 7,15,21 6 2.25% 0.50% upto
MF Inv. 1 yr
DSP 25,000 Normal 1000 1,7,14, 6 1.00% 1.25% upto
MF Inv. 21 2 yrs
HDFC 12,000 Nil 1000 1,5,10, 6 2.25% 1% upto 1
MF 15,20,25 yr
HSBC 6,000 Nil 1000 3,10,17,26 6 2.25% 1% upto 1
MF yr
Fidelity Normal Normal 500 Any Date 6 2.25% Nil
MF Inv. Inv.
ING MF 6,000 Nil 1000 1,10,15,27 6 2.25% 2.25% upto
1 yr
JM MF 10,000 Nil 1000 1st Buss. 6 Nil 2.25% upto
Day 2 yrs
Kotak MF Normal Normal 1000 1,7,14,21 6 2.25% 1% upto
Inv. Inv. 6M
ICICI 6,000 Nil 1000 Last Buss. 6 2.25% 1% upto 1
Prudential Day yr
Principal Normal Nil 500 1,11,21 6 2.25% Nil
PNB MF Inv.
Reliance Normal Nil 1000 Any Date 2 2.25% 1% upto 1
Inv. yr
SBI MF Normal Nil 500 or Any Date 12 or 6 2.25% 1% upto
Inv. 1000 6M
IDFC MF 3,000 Nil 500 1,10,20 6 2.25% 1% upto 1
yr
Sundaram Normal Nil 250 or 1,7,14,20, 10 or 5 2.25% 1% upto 1
BNP Inv. 750 29 yr
Paribus
Tata MF Normal Normal 1000 1,7,10,20, 5 2.25% 1% upto
Inv. Inv. 28 2 yrs
Templeton 12,000 Nil 1000 Last Buss. 6 2.25% Nil
Day

Weekly STP/SIP:
SIP STP
AMC Name Available Type Minimum No. of Minimum No. of
Date Installment Min Installment Min
Amount Installment Amount Installment
ABN AMRO 1,7,15,25 SIP/STP 500 6 1000 6
AIG 1,7,14,21 SIP 1000 24 ____ ___
Birla Sun 1,7,10,14, SIP 1000 8 ____ ____
Life 20,21,28
DSP ML 1,7,14,21 STP/SIP 1000 12 1000 6
DWS 7,15,21 STP/SIP 1000 6 1000 Any

54
HDFC Friday STP _____ ____ 1000 6
Fidelity Any date STP _____ ____ 500 Any
Kotak 1,7,14,21 STP _____ ____ 1000 6
ICICI Pru Monday STP _____ ____ 1000 6
JP Morgan 1,10,15,25 SIP/STP 1000 6 1000 5
Reliance 1,8,15,22 STP _____ ____ 1000 2
IDFC Any date SIP/STP 1000 24 1000 6
Tata 1,7,10,20, STP _____ ____ 1000 5
28
Templeton 7,14,14,28 STP _____ _____ 500 Any

DIVIDEND DECLARED
Monthly Income Plan Dividend Record Date
Reliance MTF Fund – M Div 0.720% 22-Oct-08
Principal MIP – M Div 0.263% 23-Oct-08
DBS Chola MIP – M Div 0.876% 27-Oct-08
ICICI Prudential MIP – M Div 0.526% 29-Oct-08
UTI MIP – M Div 0.526% 29-Oct-08
Templeton MIP – M Div 0.263% 31-Oct-08
Birla Sun Life MIP Saving 5 Plan – M Div 0.657% 12-Nov-08

Income Fund Dividend Record Date

Reliance Income Plan – M Div 0.613% 22-Oct-08
IDFC SSIF Medium Term Fortnightly Dividend – M Div 0.206% 23-Oct-08
Principal Income Fund – M Div 0.438% 27-Oct-08
Templeton India Inc. Build – M Div 0.263% 31-Oct-08

Gilt Fund Dividend Record Date

DSP BR G Sec Plan A LT – M Div 5.344% 27-Oct-08
DSP BR G Sec Plan B SIP – M Div 0.394% 27-Oct-08
Reliance Gilt Securities Fund Div – M Div 5.473% 29-Oct-08
SBI Magnum Gilt STP – M Div 0.079% 31-Oct-08
HSBC Gilt Fund STP – M Div 0.614% 31-Oct-08
Kotak Gilt saving Plan – M Div 0.444% 12-Nov-08

Equity plan Dividend Record Date

UTI Master share 22% 23-Oct-08

55
 PERFORMANCE SCORECARD
EQUITY FUND:
Large Cap Equity Fund: As On 12-Nov-08
Annualized Returns % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
AIG India Equity -92.32 -52.56 NA NA 25 23 ____ -0.115
Fund-Gr
Birla Sun Life Top -75.87 -45.38 3.92 NA 7 10 17 -0.102
100 Fund- Gr
DSP BR Top 100 -70.99 -41.92 13.22 22.83 2 4 3 -0.092
Equity Fund- Gr
Franklin India -76.01 -43.48 6.64 19.20 8 6 12 -0.090
Blue chip Fund- Gr
HDFC Top 100- Gr -74.28 -41.51 9.00 22.30 4 3 7 0.086
HSBC Equity Fund- -81.73 -44.50 7.50 21.76 16 8 10 -0.104
Gr
ICICI Pru Growth -79.64 -46.11 5.50 16.73 10 11 16 -0.093
Fund
IDFC Imperial Equity -71.59 -39.85 NA NA 3 2 ____ -0.079
Fund- Gr
Kotak 30-Div. -81.25 -46.63 8.44 23.06 15 13 8 -0.054
Reliance Vision -80.99 -47.64 6.60 19.76 13 15 13 -0.109
Fund- Gr
Sahara growth Fund- -66.55 -39.17 11.86 20.98 1 1 4 -0.102
Gr
SBI Magnum Equity -87.32 -50.11 5.97 18.06 19 19 15 -0.084
Fund- Div.
Sundaram BNP -75.82 -46.45 13.37 21.61 6 12 2 -0.102
Paribus Select Focus-
Gr

56
UTI Leadership -83.04 -51.06 NA NA 17 21 ___ -0.107
Equity Fund- Gr

Mid-Cap Equity Fund: As On 12-Nov-08

Annualized Returns % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
ABN AMRO Div. -67.19 -41.40 -6.81 NA 3 9 29 -0.088
Yield Fund- Gr
Birla Sun Life Div. -59.88 -34.39 0.32 14.23 1 1 12 -0.078
Yield Plus- Gr
Birla Sun Life India -67.92 -38.92 4.12 NA 4 4 6 -0.099
GenNext Fund- Gr
Birla Sun Life Buy -78.78 -39.92 -2.51 19.64 9 5 18 -0.091
India Fund- Gr

Franklin India Prima -89.30 -53.13 -8.32 15.23 22 24 32 -0.132

Fund- Gr
HSBC Mid Cap -104.34 -59.67 -7.28 NA 35 35 31 -0.172
Equity Fund- Gr
DBS Chola Mid Cap -95.70 -53.26 -3.30 NA 27 25 21 -0.113
Fund- Gr
ICICI Pru Discovery -88.16 -45.96 -4.63 NA 20 14 23 -0.104
Fund- Gr
ING Contra Fund- Gr -78.33 -43.59 NA NA 8 11 ___ -0.096
ING Div. Yield Fund- -74.17 -38.25 -1.31 NA 7 3 14 -0.073
Gr
Kotak Mid Cap Fund- -99.27 -56.87 -5.77 NA 30 30 24 -0.136
Gr
JM Basic Fund- Gr -125.27 -68.18 NA NA 43 44 ___ -0.155
Reliance Growth -88.67 -45.98 8.93 28.21 15 15 3 -0.107
Fund- Gr
Sahara Mid Cap -90.72 -47.78 -0.97 NA 24 17 13 -0.112
Fund- Gr
SBI Magnum Mid -111.54 -66.92 -6.62 NA 42 43 28 -0.176
Cap Fund
Sundaram BNP -82.47 -48.98 8.52 24.89 13 18 4 -0.116
Paribus Select Mid
Cap Fund
Tata Growth Fund -96.61 -54.07 -2.55 NA 28 26 19 -0.136
Tata Mid Cap Fund -100.06 -55.72 -6.88 NA 31 28 30 -0.146
UTI MNC(UGS) -60.60 -37.07 2.82 14.20 2 2 10 -0.113
Fund- Div.

Sector Specific equity Fund: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 3 yrs 5 days 180 1 yr 3 yrs Sharpe
days days Ratio

57
Birla Sun Life New -93.96 -47.78 -5.60 13.87 2 2 2 -0.125
Millennium Fund- Gr
Franklin -96.13 -48.81 2.17 18.94 4 3 1 -0.112
Technology.Com Fund
ICICI Pru Technology -108.97 -52.29 -10.17 8.17 6 5 5 -0.144
Kotak Tech -95.34 -52.26 -13.83 3.02 3 6 6 -0.131
SBI MSFU- IT -99.92 -50.68 -7.77 11.83 5 4 3 -0.121
Franklin Pharma Fund -53.23 -19.61 -1.62 8.56 3 2 4 -0.062
Reliance Pharma Fund -52.11 -28.12 6.54 NA 2 4 1 -0.062
UTI GSF- Pharma & -47.68 -16.16 0.06 8.15 1 1 2 -0.044
Healthcare Fund- Gr
SBI MSFU-Pharma- -84.96 -40.19 -10.86 10.14 5 5 5 -0.099
Gr
Franklin FMCG Fund -50.13 -23.09 3.34 17.27 1 2 1 -0.075
ICICI Pru FMCG -74.22 -36.02 2.15 23.27 3 3 2 -0.101
Fund- Gr
SBI MSFU- FMCG -56.58 -22.70 -1.98 13.55 2 1 3 -0.063

Reliance Banking -61.71 -33.77 9.27 24.96 1 1 1 -0.055

Fund- Gr
UTI Banking Fund- Gr -68.04 -43.53 6.51 NA 2 2 2 -0.065
JM Auto Sector Fund -89.25 -48.73 -12.23 NA 2 2 1 -0.120
JM Financial Services -91.28 -51.97 NA NA 2 2 __ -0.083
Sector Fund- Gr
JM Telecom Sector -98.52 -53.63 NA NA 3 3 __ -0.009
Fund- Gr
Reliance Media & -103.06 -55.54 -1.16 NA 4 4 2 -0.127
Entertainment Fund
Reliance Diversified -80.54 -46.18 25.83 NA 1 1 1 -0.107
Power Sector Fund- G

Nifty Based Index Fund: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
Birla Sun Life Index -91.92 -51.30 -15.56 2.83 8 6 5 -0.097
Fund- Gr
Franklin India Index -90.43 -50.33 -14.26 3.66 4 3 2 -0.046
Fund- Gr
HDFC India Index -88.83 -51.99 -17.21 0.77 3 8 8 -0.105
Fund- Gr
ICICI Pru Index -88.70 -48.77 -12.54 5.67 2 1 1 -0.089
Fund
LIC MF Index Fund- -90.61 -51.02 -16.73 -0.90 6 5 6 -0.106
Gr
SBI magnum Index -92.33 -51.36 -17.01 1.71 9 7 7 -0.104
UTI Index Find-Div. -90.45 -74.81 -38.94 -17.21 5 9 9 -0.098

58
Sensex Based Index Fund: As on 12-Nov-08
Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
HDFC Index Plan -91.03 -51.35 -18.32 1.44 5 6 5 -0.101
LIC MF Index Fund- -84.04 -51.01 -20.98 -4.45 2 5 7 -0.123
Advantage- Gr
Tata Index Fund- -90.80 -50.55 -16.71 2.67 3 4 4 -0.095
Option A
UTI Master Index -91.82 -50.36 -16.09 3.77 6 3 3 -0.095
Fund- Div.
Franklin India Index -90.95 -49.19 -15.02 3.83 4 2 2 -0.091
Fund- Gr
HDFC Index Plus -77.22 -44.79 -10.79 7.09 1 1 1 -0.098
Plan
LIC MF Index Fund -98.48 -52.64 -19.99 0.28 7 7 6 -0.103
ELSS/ Tax saving Fund: As On 12-Nov-08
Annualized Return % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
Birla Sun Life Tax -87.21 -50.60 0.21 17.94 13 14 9 -0.124
Plan- Div
DSP BR Tax Saver -86.79 -46.31 NA NA 11 9 ___ -0.100
Fund
DBS Chola Tax -98.92 -54.70 NA NA 22 22 ___ -0.113
Saver Fund
Fidelity Tax -77.25 -44.67 NA NA 6 4 ___ -0.103
Advantage Fund- Gr
HDFC Tax Saver- -75.03 -48.71 -0.13 23.92 5 12 10 -0.118
HSBC Tax Saver -72.84 -44.82 NA NA 2 6 ___ -0.110
Equity Fund- Gr
ICICI Pru Tax Plan -92.82 -47.93 -5.47 17.44 18 11 16 -0.109
Kotak Tax Saver- Gr -94.38 -51.96 NA NA 19 18 -0.108
LIC MF Tax Plan -87.98 -51.44 -4.95 5.46 17 16 15 -0.099
Reliance Tax Saver -72.91 -45.57 -0.82 NA 3 7 11 -0.100
Sahara Tax Gain–Gr -73.37 -42.30 4.00 18.06 4 2 5 -0.115
SBI Magnum Tax -87.35 -52.05 2.47 30.62 16 19 6 -0.095
Gain Fund- Gr
Tata Tax Saving -87.21 -51.46 -2.54 14.27 13 17 13 -0.112
Fund
Sundaram BNP -69.11 -43.09 7.69 24.33 1 3 1 -0.097
Paribus Tax saver
UTI Equity Tax -85.45 -49.53 -2.85 NA 10 13 14 -0.116
Saving Plan 2000

Equity Fund with International Exposure: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 30 90 180 1 yr 30 90 180 Sharpe

59
 days days days days days days Ratio
AIG World Gold -145.17 -120.65 NA NA 8 5 ___ ____
Fund- Gr
Birla Sun Life -39.66 -98.14 -66.61 NA 2 2 1 ____
International Equity
Fund – Gr
DWS Global 4.05 -116.97 -83.87 -38.81 1 3 5 -0.100
Thematic Offshore
Fund- Gr
FT Asian Equity -129.86 -125.89 -81.69 -41.36 7 6 4 -0.112
Fund- Gr
Fidelity International -116.93 -92.89 -70.94 NA 5 1 2 ____
Opportunities Fund
HSBC Emerging -128.07 -159.21 -98.93 NA 6 10 7 ____
Market Fund- Gr
Kotak Global -161.84 -169.69 -109.57 -50.64 9 13 11 -0.127
Emerging Market
Principal Global -70.52 -145.51 -99.65 -45.45 3 9 9 -0.113
Opportunity Fund-
Gr
Sundaram BNP -90.95 -136.12 -91.87 -41.87 4 7 6 -0.110
Paribus Global
Advantage- Gr

Closed Ended Equity Fund: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 30 90 180 1 yr 30 90 180 Sharpe
days days days days days days Ratio
ABN AMRO -130.00 -100.52 -71.75 -46.78 14 6 6 -0.100
Sustainable Dev.
Fund- Gr
Birla Sun Life LT -126.31 -139.95 -94.46 -53.77 11 14 17 -0.144
Fund- Gr
DSP BR Micro Cap -179.79 -164.76 -94.38 NA 23 24 16 ____
FT Capital -12.49 -12.55 -10.73 -4.80 2 1 1 -0.084
Protection Oriented
3Y Plan- Gr
FT Capital -32.31 -27.97 -23.00 -12.37 3 2 2 -0.074
Protection Oriented
5Y Plan- Gr
HDFC LT Equity-Gr -148.48 -119.83 -74.10 -45.44 16 9 7 -0.117
HSBC Unique -126.55 -165.95 -103.79 -57.96 12 25 25 -0.161
Opportunity Fund-
Gr
ICICI Pru Fusion -165.70 -155.28 -98.65 -55.02 21 20 20 -0.140
Fund- Gr
IDFC Enterprise 63.91 -71.99 -49.71 NA 1 4 4 ____
Equity Fund- Gr
Kotak Emerging -118.00 -147.78 -98.88 -57.84 7 17 21 -0.142

60
Equity Scheme
LIC MF Systematic -67.07 -53.26 -30.37 -15.31 4 3 3 -0.133
Asset Allocation
Fund- Gr
Reliance LT Equity -121.57 -128.58 -81.06 -46.76 9 12 11 -0.124
Fund- Gr
SBI One India Fund -180.78 -147.06 -92.33 -53.94 24 16 15 -0.135
Sundaram BNP -118.99 -153.74 -97.13 -55.56 8 19 18 -0.149
Paribus Select Small
Cap Fund- Gr
Tata Equity -85.67 -112.24 -74.99 NA 6 7 9 ____
Management Fund-
Gr
UTI India Lifestyle -81.86 -100.14 -71.33 -43.26 5 5 5 -0.116
Fund- Gr

BALANCED FUND: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
Birla Sun Life -47.66 -25.46 5.66 13.11 1 1 6 -0.093
Balanced Fund- Gr
Canara Robeco -62.21 -38.14 8.05 17.57 7 9 2 -0.098
Balanced Fund- Gr
DSP BR Balance -58.78 -31.15 10.28 17.85 4 2 1 -0.093
Fund- Gr
FT India Balance -59.72 -35.19 7.64 15.48 5 5 3 -0.103
Fund- Gr
HDFC Balance Fund -57.54 -31.32 2.78 11.48 2 3 13 -0.095
HDFC Prudence-Gr -63.08 -38.24 5.17 17.61 9 10 7 -0.121
Kotak Balance -62.00 -36.78 6.96 18.75 6 7 4 -0.050
LIC MF Balance -62.67 -37.82 5.00 10.93 8 8 8 -0.086
Fund C- Gr
Reliance Regular -58.14 -35.02 0.81 NA 3 4 15 -0.094
Savings Hybrid Plan
SBI Magnum -66.28 -40.23 3.96 19.98 11 14 10 -0.115
Balance Fund- Div
Sundaram BNP -68.79 -40.49 3.11 11.05 14 15 11 -0.115
Paribus Balance
Fund- Gr
Tata Balance Fund -69.21 -42.84 6.52 15.89 15 17 5 -0.123
UTI Balance Fund -63.85 -39.76 1.75 10.47 10 13 14 -0.117

61
DEBT FUND:
Monthly Income Plan (Max Equity 15%): As On 12-Nov-08
Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
ABN AMRO MIP -8.10 -7.41 1.26 4.38 4 13 11 -0.129
Birla Sun Life MIP- 20.14 15.28 11.75 9.92 1 1 1 0.133
Savings 5- Gr
DSP BR Savings 0.89 0.82 4.11 5.52 2 2 6 -0.080
Plus Cons. Fund-Gr
HDFC MF MIP-Gr -10.04 -5.64 0.93 2.95 6 9 15 -0.121
HSBC MIP-Regular -11.20 -3.07 4.24 6.06 7 4 5 -0.112
Plan- Gr
JM MIP Fund- Gr -12.53 -5.55 0.89 4.42 9 8 16 -0.109
LIC MF MIP- Gr -13.68 -5.98 4.53 7.42 10 11 3 -0.082
Tata MIP – Gr -4.84 -0.86 4.48 4.69 3 3 4 -0.074
Templeton MIP- Gr -11.88 -5.91 2.98 5.56 8 10 8 -0.103
UTI MIP- Gr -9.92 -3.66 3.92 6.08 5 5 7 -0.095

Monthly Income Plan (Max Equity 20%): As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
DBS Chola MIP- -12.17 13.94 11.20 10.02 4 1 1 0.072
Cum
DSP BR Savings -3.77 -1.74 4.36 6.91 2 3 2 -0.079
Plus Moderate Fund
DWS MIP Fund-Gr -12.84 -3.83 2.90 4.79 5 4 4 -0.097
FT India MIP- Gr -17.72 -9.42 1.79 5.03 8 8 5 -0.115
Kotak Income Plus -15.42 -8.80 0.81 3.84 6 7 8 -0.119

62
Reliance MIP- Gr 1.67 2.05 3.77 7.58 1 2 3 -0.011
SBI Magnum -21.68 -7.74 0.35 3.69 9 6 9 -0.096
Income Plus-Inv.
Plan- Gr
Sundaram BNP -7.87 -5.14 1.75 4.18 3 5 6 -0.113
Paribus MIP- Gr
Tata MIP Plus- Gr -17.19 -9.55 1.31 3.08 7 9 7 -0.097

Monthly Income Plan (Max Equity 30%): As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
Birla Sun Life MIP- -28.86 -16.64 -4.09 1.60 7 7 7 -0.149
Wealth 25- Gr
DSP BR Savings -6.75 -4.52 4.66 8.09 1 1 2 -0.078
Plus Aggr. Fund- Gr
HDFC MF MIP LT -20.70 -11.08 0.92 5.37 5 5 5 -0.116
HSBC MIP Saving -16.50 -6.84 4.09 6.87 3 3 3 -0.117
Plan – Gr
ICICI Pru Income -28.52 -14.77 -2.20 3.56 6 6 6 -0.111
Multiplier Regular
Plan- Gr
Principal MIP Plus -15.53 -5.65 5.76 6.68 2 2 1 -0.081
Plan- Accumulation
UTI MIP-Advantage -17.60 -9.34 2.48 6.25 4 4 4 -0.124

Liquid Fund( Regular Plan): As On 12-Nov-08

Annualized Return % Rank
Scheme Name 7 days 15 30 90 7 15 30 90
days days days days days days days
ABN AMRO Overnight 9.47 9.93 9.87 8.79 7 6 8 31
Fund- Gr
AIG India Liquid Fund- 9.85 10.16 10.09 9.47 2 4 5 11
Retail- Gr
Canara Robeco Liquid 9.27 9.89 10.47 10.49 10 8 2 1
Fund- Gr
DBS Chola Liquid Fund 9.77 10.44 10.08 9.75 5 2 6 4
DSP Insta Cash Plus 9.87 9.49 9.34 9.53 1 11 18 9
Plan- Gr

63
HDFC Liquid Fund- Gr 8.55 8.83 8.85 9.20 25 28 27 19
HSBC Cash Fund- Gr 6.69 7.26 7.14 8.09 32 34 33 33
ICICI Pru Liquid Plan 8.80 8.85 8.79 9.07 23 27 28 24
IDFC Cash Fund 9.21 9.48 9.55 9.41 12 12 13 14
JM High Liquidity Fund 9.52 9.43 9.89 9.69 6 16 7 5
LIC MF Liquid Fund-Gr 9.39 9.93 10.17 9.99 8 6 4 2
Reliance Liquid Fund- 9.19 9.47 9.22 9.25 14 14 21 16
Treasury Plan- Gr
Sahara Liquid Fund 9.85 10.18 10.21 9.58 2 3 3 6
Variable- Gr
SBI Magnum Insta Cash 9.36 10.00 9.84 8.77 9 5 9 32
Liquid – Floater Plan-Gr
Tata Liquid Fund- Gr 9.20 9.48 9.60 9.55 13 12 11 8
Tata Treasury Mg. Fund 9.81 11.73 10.48 9.97 4 1 2 3
Templeton India 8.78 9.10 9.12 9.26 24 22 25 15
Treasury Management
UTI Liquid Cash Plan 9.15 9.26 9.21 8.92 16 21 22 29
Liquid Fund- Institutional Plan: As On 12-Nov-08
Annualized Return % Rank
Scheme Name 7 days 15 30 90 7 15 30 90
days days days days days days days
ABN AMRO Overnight 9.69 10.18 10.11 9.05 7 5 6 32
Fund- Instit. Plan
AIG India Liquid Plan 10.16 10.47 10.40 9.78 1 4 4 9
Birla Sun Life cash Plus 9.17 9.58 9.21 9.57 23 16 28 20
DBS Chola Liquid Plan 9.92 10.62 10.27 9.92 3 3 5 5
DSP BR Cash Plus Fund 8.93 9.83 9.44 9.63 27 10 22 18
DWS Insta Cash Plus 9.79 9.54 9.42 9.65 5 19 23 17
Fund
HDFC Liquid Premium 8.88 9.12 9.17 9.50 28 30 30 23
Plan
HSBC Cash Fund 6.94 7.51 7.39 8.29 34 34 34 34
ICICI Pru Liquid Plan 9.78 9.78 9.75 9.90 6 11 13 7
JM High Liquidity Fund 9.56 9.44 9.89 9.69 10 24 12 15
JM High Liquidity Super 9.54 9.45 9.91 9.70 11 23 11 14
Plan
Kotak Liquid Instit. 9.38 9.91 10.05 10.15 15 7 7 3
Premium Plan
Principal CMF Liquid 9.59 9.77 9.93 9.82 9 12 10 8
Option Premium
Tata Liquid Super High 9.65 9.90 10.05 9.92 8 8 7 5
Investment Fund
Tata Treasury Manager 9.91 11.83 10.58 10.04 4 2 2 4
High Investment Plan
Tata Treasury Manager 10.11 15.76 12.78 10.88 2 1 1 1
Super High inv. Plan

Income Fund (Regular Plan): As On 12-Nov-08

64
 Annualized Return % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
ABN AMRO Flexi 9.98 10.59 8.71 NA 4 3 2 0.309
Debt Fund- Gr
Birla Sun Life Bond 8.17 7.03 5.60 4.22 5 7 14 0.355
Index Fund- Gr
Canara Rebeco 31.76 20.68 10.24 8.40 1 1 1 0.302
Income Growth Plan
DSP BR Bond Fund 2.68 3.58 4.17 3.48 14 18 20 -0.003
DWS Premier Bond 7.47 5.64 4.29 4.16 6 13 18 0.022
Fund
HDFC HIF Regular 1.92 4.87 4.22 3.43 17 16 19 0.023
Plan
ICICI Pru Income 10.49 8.57 7.07 5.14 3 6 5 0.063
Plan- Gr
IDFC SSI- INV. Plan 7.11 9.06 7.02 4.84 7 5 7 0.154
ING Income Fund 6.92 9.41 6.55 4.87 8 4 9 0.128
Kotak Bond Regular 3.67 5.18 6.67 5.39 12 15 8 0.032
Fund
LIC MF Bond- Gr 2.00 4.63 5.76 4.63 16 17 13 0.024
Reliance Income Fund 5.34 6.63 6.51 5.51 9 9 10 0.056
Sahara Income Fund 13.37 11.77 8.26 5.90 2 2 4 0.353
Tata Income Fund- Gr 2.67 5.59 4.66 5.33 15 14 16 0.060
Templeton India 1.65 2.32 4.50 3.67 19 22 17 -0.023
Income- Gr

Income Fund (Institutional Plan): As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 2 yrs 3 yrs 180 1 yr 2 yrs Sharpe
days days Ratio
ICICI Pru Insti. 11.11 9.20 8.35 7.69 1 2 2 0.073
Income Plan- Gr
ING Income Fund- Gr 7.23 9.94 9.00 7.47 3 1 1 0.135
Principal Income -0.13 3.69 5.32 5.85 4 4 4 0.004
Fund-Insti. Plan- Gr
SBI Magnum Insti. 8.49 8.64 7.98 7.44 2 3 3 2.187
Income Fund Savings

Short Term Gilt Fund: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 90 180 1 yr 3 yrs 90 180 1 yr 3
days days days days yrs
Birla Sun Life GSec ST 11.23 8.97 5.28 5.77 6 5 13 9
DSP BR GSec Plan- Gr 7.05 6.86 6.61 5.96 10 8 8 7
HDFC Gilt Fund-ST-Gr 14.57 6.60 6.60 5.39 4 9 9 11
ICICI Pru Gilt Treasury 18.24 12.70 9.67 7.48 2 2 2 2
Fund

65
IDFC GSec ST- Gr 4.78 -0.27 1.23 3.78 13 16 16 16
Kotak Gilt Savings 10.03 6.87 7.82 6.16 7 7 5 6
Sahara Gilt Fund 39.60 24.12 17.12 9.01 1 1 1 1
SBI Magnum Gilt- Gr 9.15 7.71 6.94 6.69 8 6 6 3
Sundaram BNP Paribus 4.65 4.92 4.68 4.41 14 14 15 15
Gilt Fund
Tata Gilt Sec ST 13.51 9.35 8.59 6.54 5 4 3 4
Templeton India GSec – 8.71 6.55 6.93 5.74 9 10 7 10
Treasury Plan
UTI GSec ST Plan 15.48 9.46 7.86 6.52 3 3 4 5

Long Term Gilt Fund: As On 12-Nov-08

Annualized Return % Rank
Scheme Name 180 1 yr 3 yrs 5 yrs 180 1 yr 3 yrs Sharpe
days days Ratio
Birla Sun Life Gilt 16.68 13.14 9.12 6.23 9 9 3 0.104
Plus- Regular
DBS Chola Gilt Inv. 18.36 13.34 6.18 4.46 7 8 13 0.067
DSP BR GSec Plan 20.00 13.89 7.82 5.57 6 5 7 0.100
ICICI Pru Gilt 29.83 17.68 10.49 7.11 2 2 2 0.124
Investment Fund
ICICI Pru Gilt 38.09 22.72 12.55 NA 1 1 1 0.143
Investment Fund- PF
IDFC GSec- Inv. 11.67 11.74 7.98 5.34 12 12 6 0.118
JM GSec Regular 29.34 16.56 7.73 5.50 3 3 8 0.275
Plan- Gr
Kotak Gilt Inv.- Gr 10.33 9.98 6.09 4.59 13 13 14 0.062
SBI Magnum Gilt 2.77 3.52 4.63 3.19 18 19 18 -0.007
LT
Templeton India 14.47 13.52 7.40 5.09 10 7 11 0.179
GSec Composite
Plan
Templeton India 17.24 15.51 8.49 NA 8 4 5 0.191
GSec LT
UTI Gilt Advantage 23.56 13.12 7.67 5.54 4 10 9 0.092
Fund- LT
UTI Gilt Advantage 23.54 13.11 7.66 5.52 5 11 10 0.092
Fund- PF

Short Term Plan (Regular): As On 12-Nov-08

Annualized Return % Rank
Scheme Name 30 90 180 1 yr 30 90 180 1 yr

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 days days days days days days
AIG ST Fund-Gr 9.93 8.99 5.60 NA 5 7 16 ___
Birla Sun Life ST Fund 9.90 9.82 9.00 8.70 6 3 2 4
DWS ST Fund- Gr 18.94 9.38 5.71 6.77 2 4 15 16
HDFC ST Plan 8.84 8.43 6.84 8.00 12 12 10 9
HSBC Income STP 9.66 9.09 8.74 8.97 8 6 3 2
ICICI Prudential STP 11.83 8.50 7.28 7.49 3 9 9 12
ING ST Income Fund 9.59 6.22 6.71 7.97 9 19 11 10
JM Income ST Fund 29.61 27.55 13.81 11.94 1 1 1 1
LIC MF STP- Gr 6.66 7.63 6.37 8.33 17 15 12 8
Lotus India STP 10.65 9.10 5.28 7.43 4 5 18 13
Reliance STP 5.19 6.25 5.54 7.31 18 18 17 14
Tata ST Bond Fund- Gr 9.79 10.73 7.59 8.39 7 2 6 7
Templeton India ST 2.64 7.45 6.09 7.07 20 16 14 15
Income Fund

4.2 CONCLUSION
After gone through total analysis part I found out that Last one month as on end of October
FII had withdrawn money from Debt and Equity instrument due to the world economy recession.
That’s why Equity market Indicator; all BSE Index (Key Index, Sectorial Index) had shown
negative performance, because of our stock market totally depends on foreign investor. Along
with Equity Index, Debt Index (like T-bill, OIS, and Repo Rate etc.) had shown negative
performance but some Debt Index had shown positive performance. Due to the stock market
crash our domestic investor Mutual fund was the first victim among all financial Company .
Within one month from September to October total AUM of mutual fund industry was decreased
from 6 lacs crore to 4.3 lacs crore, means total net asset was declined by 18%. That’s why day to
day mutual fund investor are losing money due to the negative performance of mutual fund
industry. Although Union Bank and KBC are going to make joint venture Asset Management
Company and another joint venture asset management company is DLF Pramerica (Real Estate
giant DLF and American Insurance Company Prudential Financial Inc). To escape the mutual
fund industry from liquidity problem SEBI has made restriction for investor to withdraw FMP
money from any Mutual Fund Company. Except this, RBI has given order to all Banks to lend
money to Mutual Fund Company for solving liquity problem.
On the basis of present Average AUM Reliance MF holds first position. HDFC MF, ICICI Pru
MF, UTI MF is followed by 2nd, 3rd, 4th position in Mutual Fund industry.
On the basis of present condition I found out that the investors had withdrawn more money from
Income Fund and Equity Fund .But most of investors had invested more money in Liquid/ Money
Market Fund and Gilt Fund on October 2008. In this market, most of Mutual Fund Company had
invested more funds in Equity market instrument but some of Fund like Escort MF, Fidelity MF,
AIG MF, Morgan Stanley MF, Sundaram BNP Paribus MF, and UTI MF had invested more funds
in Debt market instruments.
On the basis of category wise AUM Income Fund, Equity Fund and Liquid / Market Market Fund
holds 1st, 2nd, 3rd position. In this market Corpus and NAV performance of all Equity Fund,
Balanced Fund and Debt Fund was decreased except Income Fund.
On the basis of load structure, I found out that generally all funds minimum investment amount is
Rs. 5000. Generally most of Equity schemes entry load is 2.25% for < 5 crs, Nil for >=5 crs but
Equity Index Funds entry load is 2.25% for <1 cr, Nil for >= 1 cr.

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Most of Equity schemes exit load is 1% upto 6M for <5 Crs, 0.50% for 6M to 12M for >=5 Crs
and Nil after 12M.
All Debt funds have no entry load but have exit load like .25%, .80%,.75% for < 2 crs and Nil for
>=2 crs. But Birla Sun Life MF, IDFC MF, ICICI Pru MF, Tata MF and Templeton MF’s have no
exit load.
On the basis of rank I found out that still now different equity scheme of Sahara, Birla sun Life,
UTI, HDFC, Reliance, ICICI Prudential, Franklin and Sundaram BNP Paribus are holding top
position among all Mutual Fund company in the industry.
Different debt scheme of Sahara, Birla Sun Life, ICICI Prudential, HDFC, UTI, ABN AMRO are
still now holding top position among all Mutual Fund Company in the industry.
On the basis of dividend declared I found out most of debt fund had declared dividend but except
one equity fund, there are no any other equity scheme which had declared dividend on the month
of October, 08.

4.3 RECOMMENDATION

A. Mutual fund companies need to reduce entry load and exit load of mutual fund
schemes to make people more interested in mutual fund.

B. Fund manager need to increase their efficiency to make better portfolio and greater
returns to the investor.

C Mutual Fund Companies need to increase the Net Asset value and to reduce the
Liability of all Schemes. .

D Products and schemes should be recommended to the customers as per their

requirements.

E Intensive promotional activities are needed to make mutual fund more popular
investment solution in urban area.

F Disclosure of terms and condition of the mutual fund contract is very essential and
Investor Education is also equally important.

G More promotion is needed to make aware of financial market in India as a

majority of the population in India lives in rural area and through promotional
activities only we can make rural people aware about mutual fund which is one of
the best investment solution in India.

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4.4 REFERENCES

1. www.google.com

2. www.amfiindia.com

3. Gordon & Natarajan, “Financial Market and Services” (1999), Himalaya

Publishing House, Mumbai

4. Company Fact sheet

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