Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

CONTENTS
Equity & Debt Market Roundup Ongoing and Upcoming NFOs Synopsis & Infra bonds Tax free bonds & ELSS schemes FD schemes Equity Funds Performance Debt Funds Performance Indices Watch :1 :2 :3 :4 :5 :6 :7 :8

Equity Market Roundup:

Indian markets ended in red for the third consecutive month with Sensex and Nifty losing 1.3 and 1.2% respectively. Same was the case with Global markets which shed some significant points. The turbulence in the markets was seen globally with fears over US recessionary expectations and continued saga of European Debt crisis. While entire world is facing slowdown in growth, Asian markets predominantly China and India have been facing inflationary pressures as well. RBI came up with a further rate hike to add up to their continued fight against ever growing inflation. Good rainfall and Moodys positive outlook on Rupee denominated bonds failed to ignite positive sentiments among investors, and weak IIP numbers and global cues played major role in continued downslide of markets. Another major concern for the month of September was weakening of Rupee which many have owed to the reduced inflows and net outflow of FII money. Fresh bail out being planned for Greece to fight default and US urging into taking strong steps to fight unemployment and recessionary concerns along with Q2 results will play major role in defining market direction for the month of October.

Debt Market Roundup:

The month was marked by two major events in the month of September, RBI continuing rate hike of policy rates and then at the end of month when government announced borrowing of additional Rs.53000 Crores in the second half of the year. Hike in policy rates had a short term impact on the G-secs with 10 year benchmark yields spiking up and then settling down in the range 8.25-8.30% till the last day when government announced additional borrowing program which again sparked yield to close at 8.42. Corporate bonds were steady with only slight movement. With majority considering September hike to be end of cycle will be watching at inflation numbers, IIP numbers which will form basis for the action taken by RBI when they meet again for monetary policy review on 25th October. Global growth moderation and domestic factors will drive the debt and money markets.

MF Activity:
Equity Date 02-Sep-11 to 30-Sep-11 Gross Purchase (Cr.) 9649.2000 Gross Sale (Cr.) 10426.5000 Net (Cr.) -777.1000 Gross Purchase (Cr.) 86020.8000 Debt Gross Sale (Cr.) 62815.3000 Net(Cr.) 23205.8000

FII Activity:
Equity Date 02-Sep-11 to 30-Sep-11 Gross Purchase (Cr.) 47722.0000 Gross Sale (Cr.) 47880.5000 Net (Cr.) -158.3000 Gross Purchase (Cr.) 17146.2000 Debt Gross Sale (Cr.) 18854.0000 Net (Cr.) -1707.4000

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

LIST OF ONGOING & UPCOMING NFOs NFOs:

Tata Retirement Savings Fund: NFO Opens 07-Oct-2011 NFO Closes 21-Oct-2011 Fund Type: An open-ended Fund Fund Class: Asset Allocation Fund with three sub plans suited for different age groups Minimum Investment: Rs.5,000 Objective: To provide a financial tool for long term financial security for investors based on their retirement planning goals.

IDBI Gold Exchange Traded Fund: NFO Opens 19-Oct-2011 NFO Closes 02-Nov-2011 Fund Type: An open-ended Exchange Traded Fund Fund Class: Gold Minimum Investment: Rs.10,000 Objective: To invest in physical Gold with the objective to replicate the performance of Gold in domestic prices. The ETF will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Fund and the underlying asset.

HDFC Gold Fund: NFO Opens 07-Oct-2011 NFO Closes 21-Oct-2011 Fund Type: An Open-ended Fund of Fund Scheme Fund Class: Gold Minimum Investment: Rs.5,000 Investors without Demat Account can apply. Objective: To seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund (HDFC GETF).

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

SYNOPSIS-TOPIC FOR THE MONTH Save Tax and earn attractive returns as well:
It is that time of a year when people start looking for the investments for tax saving purpose. It does make sense to start early to plan allocation of the one lakh which can be saved in variety of instruments depending on the anticipated risk and returns. There are various tax saving instruments apart from traditional PPF, NSC, KVP which fall in Low risk low return criteria. ELSS, Equity Linked Savings Scheme funds as name suggests is tax saving product linked to the equity markets. This gives better returns but is riskier when compared to the traditional instruments. Thus, it may not be advisable to invest entire one lakh into ELSS funds but can be a part of everybodys portfolio. One assuming higher risk can have 50% and one with conservative outlook may go for 10-20% of ELSS funds in their tax saving portfolio. Given the tax saving feature these funds have a lock-in period. It is advisable to consult your financial advisor or do a thorough study of the funds before choosing from the universe of funds available. When investing in an ELSS funds, one more factor which can be looked at is the Dividend part. Since these funds have lock-in, if dividend option is chosen one can get tax free dividends prior to the lock-in as well. Apart from the one lakh savings, Government has introduced Long term infrastructure bonds wherein one can invest and save additional tax on Rs.20,000. A Rs.20,000 investment in Infra Bonds can save Rs.2,060, Rs.4,120 and Rs.6,180 in taxes for those falling in the 10%, 20% and 30% tax slab, respectively. Currently there are two issues running by IFCI Ltd and PFC ltd, both Government of India Undertaking companies and thus are rated highly as well. Besides saving an additional amount from Tax, they also pay you annual coupons up to 8.75%, which deems it an attractive investment avenue. Listed here are the key features of these issues. Power Finance Corporation Long Term Infra Bonds: Issue Opens 29-Sep-2011, Issue Closes 04-Nov-2011. Public issue of bonds by an infrastructure company under Sec 80 CCF. The bonds are rated AAA /Stable by CRISIL, AAA-Stable by ICRA, indicating highest safety Minimum Application: Rs.5,000 or 1 Bond Coupon: 8.50% to 8.75% These bonds will be issued only to Resident Indian Individuals (Major) and HUF The bonds will be listed on BSE and can be traded after the 5 year lock-in period.

IFCI Long Term Infra Bonds Series III: Issue Opens 21-Sep-2011, Issue Closes 14-Nov-2011. Public issue of bonds by an infrastructure company under Sec 80 CCF. BWR AA- by Brickwork Ratings India Pvt. Limited CAREA+ by CARE Ratings (Credit Analysis & Research Ltd.) LA by ICRA Limited. Minimum Application: Rs.5,000 or 1 Bond Coupon: 8.50% to 8.75% Resident Indian Individuals (Major) and HUF through Karta of the HUF Proposed to be listed on BSE Bonds shall be issued both in dematerialized form and physical form. However, trading allowed only in dematerialized mode after the expiry of lock-in Period of 5 years.

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

TAX FREE BONDS / ELSS SCHEMES

HUDCO Tax Free Bonds Series B: Instrument: Secured, Redeemable, Non-Convertible, Non-cumulative, Tax-free Bonds in the nature of Promissory notes issued on Private Placement basis Face Value: Rs.1,00,000 per Bond Minimum Application: Rs.1,00,000 or 1 bond Rating: HUDCOs Credit Rating for the proposed bond issue is affirmed at AA+ by Fitch Ratings India Private Limited and CARE Ratings. Maturity: Option I: At par 10 years from the date of allotment Option II: At par 15 years from the date of allotment Coupon Rate: Option I: 7.62% p.a. fixed payable annually Option II: 7.83% p.a. fixed payable annually Issue Opening Date: October 13, 2011 Issue Closing Date: October 31, 2011 Cheque/DD in Favour of: Housing and Urban Development Corporation Ltd. and crossed Account Payee only. Form of Issuance: Demat form only

Indian Railway Finance Corporation: IRFC is a dedicated financing arm of the Ministry of Railways. Its sole objective is to raise money from the market to part finance the plan outlay of Indian Railways. Instrument: Secured, Redeemable, Non-Convertible, Non-cumulative, Tax free Bonds in the nature of Debentures Series 79 Face Value: Rs.1,00,000 (Rupees One Lacs only) per Bond Minimum Application: Rs.1,00,000 or one bond Rating: 'AAA' by CRISIL and 'LAAA' by ICRA Maturity: Series 79: 10 years from the deemed date of allotment Series 79-A: 15 years from the deemed date of allotment Coupon Rate: Series 79: 7.55% p.a. payable annually Series 79-A: 7.77% p.a. payable annually Issue Opening Date: October 10, 2011 Issue Closing Date: October 21, 2011 Cheque/DD in Favour of: IRFC Tax-Free Bond Issue October-2011 and crossed Account Payee only Form of Issuance: Demat form only

ELSS schemes which can be considered for Tax Saving purpose with benefits u/s 80C: Scheme Name Category: Equity Linked Savings Scheme Canara Robeco Equity Tax Saver (D) Taurus Tax Shield (D) Fidelity Tax Advt (D) Franklin India Taxshield (D) HDFC TaxSaver (D) Reliance Tax Saver (ELSS) (D) ICICI Pru Tax Plan (D) Principal Personal Tax Saver (D) Birla SL Tax Relief '96 (D) DSPBR Tax Saver (D) *Arranged on the basis of 5 year performance 302.1400 68.3507 1147.0807 790.3864 3032.1048 2027.0000 1259.3453 519.4791 1417.2900 722.5156 17.3700 15.1700 17.2360 29.6395 53.8760 13.7623 17.6000 84.8300 70.1300 10.7970 30.1805 22.8935 24.9982 24.1707 24.1282 22.5656 28.1573 16.5690 19.7948 20.6105 16.2014 13.6878 12.4741 10.6817 9.1045 8.3907 7.7676 7.2397 5.8788 14.3446 11.0704 13.6094 17.7345 30.0023 11.7053 23.6342 23.0427 28.1983 9.1326 AUM Latest NAV(Rs) CAGR 3 Years 5 Years SINCE INCEPTION

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

FIXED DEPOSITS SCHEMES

DHFL Aashray Deposit Plus: Incorporated on 11th April, 1984, the company is primarily carrying on the business of providing finance for purposes of construction / purchase of residential houses. Consistently Profit making & Dividend Paying Company Rated CARE AA+ FD rating and BWR FAAA Varied options with Interest up to 11% (0.50% extra for Senior Citizens (aged above 60 years), Windows, Armed Forces Personnel, Existing DHFL Home Loan Borrowers & DHFL Share Holders Cheque / DD in favour of: Dewan Housing Finance Corporation Ltd. A/c payee only Shriram Unnati: Incorporated on 30th June 1979, Shriram Transport Finance Company Ltd. is one of the largest asset financing NBFCs in India with a niche presence in financing pre-owned trucks and Small Truck Owners (STOs). Largest asset financing company of India Consistently profit making and dividend paying Company Rated FAA+/Stable by CRISIL and MAA+/Stable by ICRA Varied options with Interest up to 10.75% Cheque / DD in favour of: Shriram Transport Finance Company Ltd and to be deposited in AXIS CMS A/c No. STFCDEB 230010200011635 Mahindra Finance: Established on January 1, 1991, the company belongs to US $6.7 billion Mahindra group. One of the leading NBFC in India, with an extensive range of products and services. Consistently profit making and dividend paying Company Rated FAAA by CRISIL indicating highest Safety. Varied options with Interest up to 10.50% (Senior citizens and employees get an additional 0.25% p.a) Cheque / DD in favour of: MMFSL Fixed Deposit crossed A/C payee only HDFC: Incorporated in 1977, HDFC is a public limited company primarily engaged in the business of providing housing finance by creating an institutional facility for meeting the needs of people for long-term finance for purchase / construction of residential houses anywhere in India. Consistently profit making and dividend paying Company Rated FAAA & MAAA by CRISIL and ICRA for over a decade. Varied options with interest rate up to 9.75% (0.25% Additional Interest (p.a.) for Senior Citizen) Loan against deposit is available after 3 months from the date of deposit up to 75% of the deposit amount, subject to the other terms and conditions framed by HDFC. Cheque / DD in favour of: HDFC Ltd and marked Account Payee only HUDCO: HUDCO was incorporated on April 25, 1970 under the Companies Act 1956. Housing & Urban Development Corporation Ltd. (HUDCO) is a public sector company fully owned by Govt. of India for financing of housing and urban infrastructure activities in India Credit Rating 'AA+' by FITCH and CARE AA+(FD) by CARE Varied options with interest up to 9.40% Income tax benefits U/S 80C for deposits of 5 yrs under Regular plus deposits. Advance Interest Warrants (For HUDCO Regular Plus) only. The loan facility will be up to 75% of the amount of deposit, can be availed only after expiry of 3 months from the date of deposit (excluding deposits received u/s 80C) Cheque / DD in favour of: Housing & Urban Development Corporation Ltd. And should be marked Account payee only

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Karvy Research Desk

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

Equity Funds Performance:

Scheme Name Diversified Funds IDFC Small & Midcap Equity(G) SBI Magnum Emerging Businesses(G) ICICI Pru Discovery(G) UTI Transportation & Logistics(G) IDFC Premier Equity-A(G) ETF's GS Junior BeES GS Bank BeES Kotak PSU Bank ETF GS PSU Bank BeES Kotak Sensex ETF FOF's AIG World Gold(G) DSPBR World Gold-Reg(G) Birla SL Asset Alloc-Aggr(G) FT India Life Stage FOFs-20(G) ING OptiMix 5 Star Multi-Mgr FoF(G) Sector Funds Reliance Pharma(G) Sahara Banking & Financial Services(G) ICICI Pru FMCG(G) Franklin Infotech(G) Reliance Banking(G) Contra Funds Tata Contra(G) Religare Contra(G) Kotak Contra(G) ING Contra(G) SBI Magnum Contra(G) Dividend Yield Funds Birla SL Dividend Yield Plus(G) ING Dividend Yield(G) Tata Dividend Yield(G) BNP Paribas Dividend Yield Fund(G) UTI Dividend Yield(G) Global Funds DSPBR Natural Res & New Energy-Reg(G) Templeton India Equity Income(G) Fidelity International Opp(G) Mirae Asset Global Commodity Stock(G) 13.8810 17.3009 12.0530 10.4590 -11.3432 -21.1448 -15.3700 -15.8433 -8.8340 23.6875 17.3537 16.5819 14.4892 13.3571 10.3001 9.9656 10.5439 4.3713 1.4434 3.5804 79.6300 21.6200 30.6988 17.2330 30.1000 -14.6608 -14.4101 -13.6053 -11.2844 -12.5254 27.9172 25.9410 25.5891 24.3904 23.5228 13.8693 14.1894 12.5428 10.2321 14.7568 27.2262 13.8204 17.7162 9.3916 18.6845 16.1713 14.4400 18.1860 13.7200 47.7200 -15.7745 -17.9079 -24.5144 -23.0942 -25.3559 21.5065 20.8778 14.5360 14.1397 13.1410 6.2797 6.3848 6.6881 6.8159 8.4898 8.5209 10.1268 5.8307 18.1199 53.9864 25.1381 75.6500 55.9491 84.6995 -2.9932 -27.6664 11.1356 -12.4807 -27.2083 38.5584 35.6793 31.2550 26.3813 25.6540 14.2950 4.1779 18.9065 22.4280 25.8475 35.1864 17.5285 14.0078 29.0910 14.9270 18.7238 31.5885 34.4123 13.6528 5.0679 4.5689 -13.1409 -11.0458 -17.8468 26.9219 24.9759 18.8919 17.8317 16.7755 10.7438 9.7582 12.7770 16.6802 16.1638 17.0259 6.8101 95.5733 916.1731 319.7434 309.7731 166.5804 -26.9246 -26.9810 -38.6188 -38.5874 -19.0124 21.8572 20.0414 17.7711 16.5859 13.6691 7.2068 11.2810 27.6356 19.0497 2.3758 2.6847 2.8107 17.1590 42.1200 41.9600 25.7100 31.5599 -15.0666 -4.2074 -19.1210 -15.7602 -11.1652 31.4740 30.7440 29.7119 29.6711 29.2085 9.2822 9.7156 5.5909 22.4046 16.2480 22.8337 22.2273 13.4568 21.0072 Latest NAV(Rs) Absolute 1 Year 3 Years CAGR 5 Years SINCE INCEPTION

Tata Grow Economies Infra-A(G) 11.3075 (Funds has been arranged on basis of 3 years performance)

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

Debt Funds Performance:

Scheme Name Gilt Funds Birla SL G-Sec-LT(G) ICICI Pru Gilt-Invest-PF ICICI Pru Gilt-Treasury-PF Escorts Gilt(G) ICICI Pru Gilt-Treasury(G) Income Funds ICICI Pru Income Opportunities-Reg(G) IDFC SSIF-MT(G) ICICI Pru Income-Reg(G) DWS Premier Bond-Reg(G) FRF Escorts ST Debt(G) HDFC FRIF-LT(G) SBI Magnum Income FRP-Saving Plus Bond(G) Balanced Funds HDFC Prudence(G) HDFC Children's Gift - Investment HDFC Children's Gift - Investment(Lock in) HDFC Balanced(G) Birla SL '95(G) MIP's HDFC MIP-LTP(G) Reliance MIP(G) ICICI Pru MIP 25(G) ICICI Pru Child Care Plan-Study Plan 22.9533 21.7288 19.5262 29.5128 0.3972 0.4814 0.6567 0.4086 1.1868 14.7617 14.7517 12.9698 12.7843 12.6749 9.9519 10.1090 7.1866 9.6656 6.6160 11.2612 10.5195 9.2987 11.3023 8.3441 199.1370 41.9680 41.9680 54.0270 291.9100 -10.2991 -0.9301 -0.9301 -4.4091 -10.3085 24.5457 24.5202 24.5202 23.2934 23.1170 13.6612 11.8941 11.8941 12.4437 12.3177 18.4236 14.4816 14.4816 16.4501 22.4676 15.2579 17.7294 15.9133 10.3270 9.0342 8.9176 8.0665 7.8724 7.8514 7.8806 8.0827 7.1883 7.6846 6.7803 6.6312 13.7817 17.4016 31.9307 17.0304 5.0563 7.2663 4.7492 6.1726 10.9895 9.6877 9.6473 9.6377 8.5476 8.5047 7.2367 10.7660 6.9413 9.1540 6.3180 29.0792 19.5257 16.6987 22.1755 26.1408 4.9207 4.2433 5.8702 5.4269 5.5397 12.1310 9.9695 9.0347 8.9830 8.9116 8.4659 11.0952 8.2157 8.7149 8.1722 9.3431 8.8537 6.9252 7.8363 8.2352 Latest NAV(Rs) Absolute 1 Year 3 Years CAGR 5 Years SINCE INCEPTION

Birla SL MIP II-Wealth 25(G) 18.0672 (Funds has been arranged on basis of 3 years performance)

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Monthly News Letter

PF/MFNL/17102011/753 October 17, 2011

Indices Watch - As on 13-Oct-2011

Indian Indices:
Index Name S&P CNX Nifty CNX Nifty Junior S&P CNX 500 BSE SENSEX BSE IT BSE OIL & GAS BSE Consumer Durables BSE TECk BSE Realty BSE AUTO BSE BANKEX BSE FMCG BSE Health Care BSE MIDCAP BSE PSU BSE SMALLCAP BSE Power BSE METAL BSE Capital Goods Opening Price 5001.00 9989.00 4038.35 16676.75 5061.83 8353.25 6263.36 3204.57 1739.58 8396.16 10904.24 3949.57 5962.26 6273.60 7615.62 7131.48 2232.64 12097.10 12046.55 Closing Price 4943.25 9822.20 3978.35 16453.76 5275.23 8494.45 6361.41 3251.55 1762.96 8498.42 10850.73 3910.39 5867.80 6129.59 7403.82 6881.08 2125.41 10995.57 10742.97 %age Change -1.15 -1.67 -1.49 -1.34 4.22 1.69 1.57 1.47 1.34 1.22 -0.49 -0.99 -1.58 -2.30 -2.78 -3.51 -4.80 -9.11 -10.82

Global Indices:
Index Name Bovespa CAC 40 DAX Dow Jones FTSE 100 Hang Seng Nasdaq Nikkei 225 S&P 500 Opening Price 56495 3256.76 5784.85 11613.53 5394.5 20534.85 2579.46 8955.2 1218.89 Closing Price 52324 2981.96 5502.02 10913.38 5128.5 17592.41 2415.4 8700.29 1131.42 %age Change -7.38 -8.44 -4.89 -6.03 -4.93 -14.33 -6.36 -2.85 -7.18

Key Indicators:
Indicators 10 year BM G-Sec 1 Year MIBOR OIS 5 Year MIBOR OIS Call Repo CBLO USD Euro Brent Crude Opening 8.34 7.86 7 8.09 7.99 7.7 45.9 65.41 114.76 Closing 8.42 7.92 7.07 8.28 8.27 8.08 48.93 66.65 107.17

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The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. While acting upon any information or ana lysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. This report is intended for a restricted audience and we are not soliciting any action based on it.

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Karvy Research Desk

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