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Fortune Equity Brokers (India) Ltd. www.fortune.co.in Page 2 of 14

Balanced Funds: These funds invest across equity and debt markets and they are less exposed to equity market risk as compared to pure equity funds. Equity‐oriented balanced funds invest around 60‐70% in equity and rest 30‐40% in debt markets. Balanced Funds can be chosen to plan for children’s education or marriage goals. Recommended Balanced Funds

Gold Funds: To make portfolio more stable we can consider investing 5‐10% of the portfolio in Gold as an asset class; which has historically shared negative correlation with equity markets in most of the time. We can accumulate this systematically over long term for children’s marriage purpose etc. As prices are rising continuously and making new all time highs; it would be prudent to lock‐in at available prices systematically. Recommended Gold Funds

Debt Funds: These funds invest across money market and debt instruments such as in Corporate Bonds, Bank Certificate of Deposits (CDs), Treasury Bills,

Commercial Papers (CPs), G‐Sec Bonds etc.

Monthly Income Plan (MIP): Those who are risk averse but willing to take slight equity market risk by investing around 5‐25% in stocks can

consider MIPs with an investment horizon of atleast 3 years.

MIPs are predominantly a Bond Fund with an essence of equity. Meaning, 75‐95% of the portfolio is invested in debt market and rest in equity. MIPs are tax‐effective as compared to Bank FDs. MIPs can be used as a best investment tool for retirement planning. Recommended MIPs

Fixed Maturity Plans (FMPs): FMPs are extremely popular at present as it offers a product like a bank FD with a LOW taxation structure. FMPs invest in bank CDs, corporate bonds, commercial paper (CPs), money market instruments etc. whose maturity coincides with that of the scheme. So a 1 year FMP will invest in instruments maturing in 1 year and so on. Instruments in the portfolio are held till maturity thereby blocking the Interest rate risk. FMPs are tax‐effective as compared to Bank FDs. 6 months papers are trading at 8.80–85% yield, wherein 1 yr corporate bonds are trading at 9.45‐10.15% p.a. yield. Definitely Bank FDs offer guaranteed returns but it gets axed heavily by the taxes. In FMP though returns are not fixed; it makes sense as returns more or less similar to Bank FDs and more importantly offers tax effective returns.

It is indeed safer to invest in FMPs as Asset Management Companies these days invest in highly rated papers only. Highly rated papers abate the credit risk to insignificant level and FMPs are also not vulnerable to interest rate risk as portfolio is held till maturity. FMPs are available in various tenures from 1 month to 3 years. The most common tenures are: 90 days, 6 months, 366 days, 13 months etc.

Click here to track Ongoing FMPs

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Liquid / Liquid Plus Funds: These funds are better alternative to bank savings a/c. Bank savings a/c deregulated from 4% p.a. and at present fetching

in the range of 4 ‐ 7% p.a.; however, it is taxable. An effective return for 30% tax bracket individual would be in the range of 2.80 – 4.85% p.a. in savings a/c. Therefore, it makes sense to keep money in liquid plus funds, which offers better returns (at present short term rates are high; these funds are yielding around 7‐8.00% p.a.) that too tax‐effective returns. Liquid Plus Funds can also be considered for the Systematic Transfer Plan (STP). In case of STP, the entire amount is invested in debt fund preferably liquid plus fund and then systematically say every month it is transferred to Equity Funds, just like a Systematic Investment Plan (SIP).

Recommended Liquid Plus Funds

Income Funds: These funds invest in Corporate Bonds, Bank Certificate of Deposits (CDs), Treasury Bills, Commercial Papers (CPs), G‐Sec Bonds etc. Income Funds are pure debt funds hence they are not exposed to equity market risk; however, they are open to interest rate risk. Interest rate risk is nothing but the fluctuation caused in the price of the bond by changes in the yield. Bond price and yield share an inverse relationship. When yield goes up, bond prices fall and when yield goes down, bond prices goes up. Therefore, it is very important to watch the interest rate trajectory before investing in debt funds. It would be appropriate time to invest when interest rates are peaked up and are expected to remain stable or fall in the near future. Longer the tenure of the bond more will be the impact on price due to changes in the yield and vice versa.

At present interest rates are at a downward trajectory. Lately, the 10 yrs benchmark bond yield has eased from a high of 9% to present level of 8.18% hinting the initiation of downward movement of rate cycle. In a bid to bolster growth, RBI is expected to be seen slashing rates round the corner. At such times it is advisable to give debt funds a shot. At such time it makes sense to look at dynamic bond funds, where in the fund manager have freedom to change the average portfolio maturity from long term to short term and vice‐versa or sitting on to cash at times to get the maximum benefit from the interest rate fluctuations.

Recommended Short Term Income Funds

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Recommended Equity Funds Scheme Name Fund Launch Net Assets NAV Benchmark

Rating^ Date (Rs. Crs) Gr. Div 6 M YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs Since Inc Name

Frankl in India Bluechip ***** 03‐Dec‐93 4,748 217.96 35.86 0.01 16.76 9.15 9.53 7.63 15.22 22.24 BSE SENSEXICICI Pru Focused Blue Chip Eq ***** 26‐May‐08 3,841 17.18 16.40 2.81 18.32 13.03 11.83 ‐‐ ‐‐ 13.36 S&P CNX NiftyRel iance Top 200 **** 09‐Aug‐07 809 13.28 12.23 5.47 29.43 15.88 6.65 5.86 ‐‐ 5.72 BSE‐200SBI Magnum Equity ***** 27‐Nov‐06 1,016 44.55 29.93 2.46 20.83 10.96 8.24 6.06 ‐‐ 8.79 S&P CNX Nifty

Absolute Returns (%) Compound Annualized (%)

Equity - Large Cap Fund

Large Cap Funds aims to gain capital appreciation by investing in Bluechip companies' stocks or stocks with higher market capitalization which makes portfolio relatively stable.

Birla SL Frontl ine Equity **** 27‐Sep‐02 2,772 89.04 20.33 4.95 21.99 12.23 8.08 7.99 16.53 24.48 BSE‐200Frankl in India Prima Plus ***** 29‐Sep‐94 1,805 226.98 24.64 2.47 17.86 8.89 9.54 6.93 15.51 18.97 S&P CNX 500Tata Pure Equi ty **** 15‐May‐98 568 102.70 35.92 5.72 22.47 13.78 9.56 7.25 14.82 24.21 BSE SENSEXUTI Opportunities ***** 21‐Jul ‐05 2,780 29.89 14.15 2.64 18.33 13.65 11.61 11.91 15.01 16.53 BSE‐100

Large & Mid Cap

Large & Mid Cap Funds aims to gain capital appreciation by investing across Large & Mid Cap stocks which makes portfolio stable at the same time adds zing of midcap stocks.

ICICI Pru Discovery ***** 16‐Aug‐04 1,829 51.40 19.61 5.37 30.79 17.49 13.38 12.79 15.19 22.44 CNX MidcapIDFC Premier Equity‐A ***** 28‐Sep‐05 2,821 34.86 22.97 4.42 22.18 6.55 15.95 13.74 ‐‐ 19.63 BSE‐500Rel iance Equi ty Oppor ***** 28‐Mar‐05 3,473 39.70 24.03 8.16 31.93 18.85 18.22 10.81 17.59 20.29 BSE‐100SBI Magnum Emerging Bus ines***** 12‐Oct‐04 754 51.21 16.52 15.16 31.21 16.73 22.49 7.94 12.17 22.87 BSE‐500

Mid & Small Cap Funds

Mid & Small Cap Funds explores opportunities in the small and mid cap stocks. These funds are relatively more volatile and are high risk‐ high return funds.

BSE SENSEX 18,464 5.71 18.99 9.04 3.45 3.42 11.95

BSE‐100 5,529 3.64 20.01 7.39 3.01 3.40 11.41

BSE‐200 2,232 3.18 20.42 6.52 2.98 3.14 10.91

BSE‐500 6,961 2.74 20.47 5.53 2.91 2.55 10.35

CNX Midcap 7,340 ‐3.91 20.42 ‐0.09 4.22 3.17 9.60

S&P CNX 500 4,349 2.90 20.72 5.94 2.66 2.73 9.81

S&P CNX Nifty 5,578 4.88 20.29 9.70 4.00 4.30 11.82

Benchmark Performance

^ Value Research Fund Rating;

Return as on 14 Sept, 2012.

Large Cap Funds Large & Mid Cap Mid & Small Cap Funds Click here for Fund Report Cards

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http://www.ffsiltech.com/report/LargeCap_Funds.pdf

http://www.ffsiltech.com/report/Large&MidCap_Funds.pdf

http://www.ffsiltech.com/report/MidCap_Funds.pdf


Scheme Name Fund Launch Net Assets BenchmarkRating^ Date (Rs. Crs) Gr. Div 6 M YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs Since Inc Name

Tax Saving Fund / ELSS

Frankl in India Taxshield **** 10‐Apr‐99 845 220.53 28.85 2.80 18.23 9.86 11.84 8.37 13.85 25.88 S&P CNX 500Rel iance Tax Saver (ELSS) **** 23‐Sep‐05 1,970 21.96 13.90 3.10 30.00 12.58 11.88 6.24 ‐‐ 11.92 BSE‐100Canara Robeco Eq. Tax Saver ***** 02‐Feb‐09 420 27.39 18.24 4.46 20.18 11.16 11.66 ‐‐ ‐‐ 30.64 BSE‐100ICICI Pru Tax Plan ***** 19‐Aug‐99 1,295 143.82 18.27 4.29 25.22 12.22 11.63 8.45 11.08 22.60 S&P CNX 500

NAV Compound Annualized (%)Absolute Returns (%)

Tax Saving Funds are popularly known as Equity Linked Savings Schemes (ELSS). Essentially they are diversified equity funds with 3 yrs lock‐in and eligible for tax deductions u/s 80C. Maximum deduction available u/s 80C is Rs. 1 lakh.

Index Funds

ICICI Pru Index ***** 01‐Mar‐02 90 52.26 2.51 20.08 11.09 5.46 5.13 13.46 16.96 S&P CNX NiftyHDFC Index‐Sensex Plus ***** 18‐Jul ‐02 84 235.90 5.06 21.51 12.67 8.30 6.94 14.75 21.64 BSE SENSEXAn index fund aims to replicate the returns of the underlying index by investing in the stocks in the same weightage of the stock to the Index.

Balanced Funds

HDFC Balanced ***** 20‐Sep‐00 630 59.97 18.72 1.46 18.75 8.48 15.09 12.61 13.91 16.07 Cris i l BalancedRel iance Reg Savings ‐Balance **** 12‐Jun‐05 571 23.62 13.28 6.53 23.75 15.46 10.52 11.75 12.92 12.55 Cris i l BalancedTata Balanced **** 05‐Jan‐96 376 91.80 54.92 7.02 21.79 14.53 12.01 9.35 14.63 16.04 Cris i l BalancedBalanced Funds invests across equity and debt markets and are less exposed to equity market risk as compared to pure equity funds. Equity‐oriented balanced funds invest around 60‐70% in equity and rest 30‐40% in debt markets.

BSE SENSEX 18,464 5.71 18.99 9.04 3.45 3.42 11.95BSE‐100 5,529 3.64 20.01 7.39 3.01 3.40 11.41S&P CNX 500 4,349 2.90 20.72 5.94 2.66 2.73 9.81S&P CNX Nifty 5,578 4.88 20.29 9.70 4.00 4.30 11.82Cris i l Balanced Fund Index ‐ 3.14 13.75 8.04 4.75 5.94 10.22

Benchmark Performance

^ Value Research Fund Rating;


Tax Saving Funds / ELSS Index FundsClick here for Fund Report Cards Balanced Funds

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http://www.ffsiltech.com/report/Tax_Saving_Funds.pdf

http://www.ffsiltech.com/report/Index_Funds.pdf

http://www.ffsiltech.com/report/Balanced_Funds.pdf


Fund Report Card ‐ Specimen

SIP performance of the fund over 1 yr, 3 yrs, 5 yrs and Since Inception; along with benchmark SIP performance.

Pictorial comparison of Fund performance vis‐à‐vis that of benchmark and Nifty

Best & Worst Returns: If invested any day Since Inception and held for specified period (i.e. a month, quarter or year) Best, Worst and Average returns are given.

Asset Allocation: Equity, Debt and cash holding

Volatility Measures; Fund Statistics and Holding Concentration

Top 10 Sectoral Allocation

Top 10 Company‐wise Allocation

Fund Objective

Return performance along with benchmark and Nifty returns.

Market Cap Allocation: Large Cap, Mid Cap and Small Cap stocks %age allocation

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Period Return (%)* Value of Rs. 10,000

When markets had fallen substantially or during the periods of economic concerns gold has been perceived as a safer heaven and a store of value.

Historically, Gold has acted as a good hedge against inflation and weakening currency (Dollar).

In recent times, Gold has shown a low correlation with other asset classes, while its return potential has been similar to equity asset performance.

Improves portfolio diversification and minimizes downside risk of the portfolio.

Keep 5‐10% exposure of the portfolio in Gold to build a well balanced portfolio.

2000 1.0% ‐21.0%

2001 6.0% ‐18.0%

1 year 17.28% Rs.11,728 2002 24.0% 4.0% 3 years 26.15% Rs.20,075 2003 15.8% 72.9% 5 years 19.29% Rs.24,159 2004 4.97% 13.1% 7 years 20.96% Rs.37,892 2005 21.4% 42.3% 10 years 18.57% Rs.54,904 2006 21.6% 46.7%

* Compounded annualized returns as on 14 Sept, 2012

If you had invested Rs.10,000 in gold 5 years back, it would be worth Rs.24,159 offering astounding 19.29% compounded annualized returns. Past performance may or may not be sustained in the future.

2007 17.3% 47.2% 2008 26.0% ‐53.0% 2009 22.0% 81.0% 2010 22.9% 17.4% 2011 32.12% ‐24.64%

2012^ 18.04% 19.47%

Benefit of Gold Fund

It allows Systematic Investment (SIP / STP) in GOLD

Non‐demat a/c holder can also invest in it

Systematic and affordable way to accumulate gold for your family needs

Benefit from Rupee cost averaging Anytime liquidity through the AMC

Systematic Investment (SIP) of Rs.5,000 p.m. in the Gold ^ Till 14 Sept, 2012.

Period 1 Year 3 Years 5 Years 10 YearsSIP Start Date 03‐Oct‐11 01‐Oct‐09 01‐Oct‐07 01‐Oct‐02

Gold Price (Rs/ 10 gm (Tola) as on 14‐09‐2012) 32,100 32,100 32,100 32,100 Total No. of Gold Tolas Accumulated 2.15 8.52 18.11 63.78 Total amount invested in Rs. 60,000 180,000 300,000 600,000 Market Value of Gold in Rs. as on 14‐09‐2012 69,029 273,568 581,457 2,047,211

Return on SIP (XIRR %) 31.94% 30.04% 27.27% 23.37%

Scheme Name Launch Net Assets NAV Date (Rs. Crs) Gr. 1 M 3 M 1 Yr 3 Yrs 5 Yrs Since Inc

Rel iance Gold ETF 09‐Apr‐08 2,778 3,023 7.8 6.8 17.1 25.3 ‐ 25.14

Kotak Gold ETF 29‐Jun‐08 1,154 3,104 7.8 6.8 17.0 25.3 27.06 27.79

SBI Gold ETF 02‐Sep‐08 1,219 3,168 7.8 6.8 17.2 25.2 ‐ 26.13

Gold‐India 32,100 7.0 6.4 17.3 26.1 ‐ ‐

BSE Sensex 18,464 4.6 8.9 9.0 3.5 3.42 ‐

Absolute Returns (%) CAGR (%)

Back

Those who do not have demat a/c or willing to start SIP can consider Fund of Funds of these ETFs.



Monthly Income Plans (MIPs)

Those who are risk averse but willing to take slight equity market risk by investing around 5‐25% in stocks can consider MIPs with an investment horizon of atleast 3 years.

MIPs are predominantly a Bond Fund with an essence of equity. Meaning, 75‐95% of the portfolio is invested in debt market and rest in equity. MIPs are tax‐effective as compared to Bank FDs. MIPs can be used as a best investment tool for retirement planning.

Recommended Monthly Income Plans:

Scheme Name Fund Launch Net Assets Equity Avg. Mat Expense

Rating Date (Rs. Crs) Expo (%) No. of Yrs Gr. Div 1 Yr 3 Yrs 5 Yrs Since Inc Ratio (%)

Monthly Income Plans (MIPs)

Birla SL MIP I I‐Savings 5 ***** 22‐May‐04 323 8.49 3.64 20.01 11.68 10.23 7.65 10.44 8.69 1.32

Canara Robeco MIP **** 31‐Mar‐96 293 17.99 3.06 32.89 13.90 9.04 7.80 8.58 7.21 2.08

DSPBR MIP **** 14‐Jun‐04 299 16.53 2.53 21.84 11.33 12.01 7.92 8.04 9.91 2.10

HDFC Multiple Yield 2005 ***** 22‐Aug‐05 581 10.39 0.96 18.41 11.24 8.43 10.08 9.48 9.00 1.75

Rel iance MIP ***** 13‐Jan‐04 3,618 18.84 6.49 24.21 10.93 10.71 8.69 11.47 10.70 1.56

Crisil MIP Blended Index 8.84 6.37 6.93 ‐

NAV Compounded Ann. Return (%)

* Monthly Dividend NAVs are considered. Return as on 14 Sept, 2012.

Maximum (%) Minimum (%) Average (%)

Birla SL MIP I I‐Savings 5 14.84 4.31 9.72

Canara Robeco MIP 20.30 5.15 11.77

DSPBR MIP 14.07 6.35 9.55

HDFC Multiple Yield 2005 13.90 4.34 9.74

Rel iance MIP 16.07 6.50 11.89

Rolling Returns ‐ 3 yrs holding periodName of the Fund

Rolling Return Analysis: If you had invested on any day Since Inception in any of the above recommended fund and stayed invested for 3 years, the following is the break‐up of maximum, minimum and average compounded annualized returns.

Monthly Income Plans (MIPs)Click here for Fund Report Cards

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http://www.ffsiltech.com/report/MIPs.pdf


Liquid / Liquid Plus Funds

Empower your idle money lying in Bank Savings a/c..

Liquid / Liquid Plus Funds are better alternative to bank savings a/c. Bank savings a/c deregulated from 4% p.a. and at present fetching in the range of 4 ‐ 7% p.a.; however, it is taxable. An effective return for 30% tax bracket individual would be in the range of 2.80 – 4.85% p.a. in savings a/c.

It makes sense to keep money in liquid funds, which offers better returns (at present short term rates are

high; liquid funds are yielding around 7‐8.00% p.a.) that too tax‐effective returns as compared to bank Savings A/C.

Keep only 1‐2 months expenses in Bank Savings a/c which can be required in case of emergency.

Which debt fund I should choose for Systematic Transfer Plan (STP)?

Consider the liquid plus funds for Systematic Transfer Plan (STP). In case of STP, entire amount is

invested in debt fund preferably liquid plus funds and systematically say every month it is transferred to Equity Funds, just like a Systematic Investment Plan (SIP).

How does the concept of STP works?

STP is recommended when market is hovering at higher levels and expected to fall or remain highly volatile and investor has lumsump money to invest in, at that time it would be safer to invest everything in debt funds and then systematically transfer money in the equity funds.

Did you Know?

In liquid/liquid plus funds, you get

redemption on T+1 day. While in case of

equity funds it takes T+3 days.

Debt Fund

(Preferably Liquid Plus Funds and Dividend Re‐investment Option)

Investor invests entire amount in Debt Fund

From Debt Fund a specified amount is systematically transferred in Equity Fund

of the SAME FUND HOUSE every month or quarterly.

Equity Fund

Back Next


Liquid / Liquid-Plus Funds

Below mentioned are the Liquid Plus Funds (Ultra Short Term Funds) / Liquid fund. From taxation point of view (of individuals), Liquid Plus Funds (Ultra Short Term Funds) are better off as Dividend Distribution Tax (DDT) is 13.52% including surcharge and education cess as against DDT of 27.04% on Liquid Funds. We have offered the list of liquid fund / liquid plus funds of those Fund Houses in which we have recommended equity funds above. Meaning, if you are planning for Systematic Transfer Plan (STP) in Equity Fund, then invest in the below mentioned Liquid Plus Fund of the same Fund House first.

Fund Launch Net Assets Avg. Mat Yield to Mat Latest

Rating Date (Rs. Crs) No. of Days (YTM) % Gr. 1 W 1 M 3 M 6 M 1 yr Exp. Ratio

Liquid Plus Funds

Baroda Pioneer Treasury Adv‐Reg **** 29‐Jun‐09 593 55 ‐‐ 1268.93 8.32 8.85 9.51 10.47 10.17 0.48

Birla SL Savings ‐Ret *** 03‐Dec‐01 4,355 ‐‐ 9.00 207.62 8.50 8.72 9.08 9.94 9.71 0.25

Birla SL Ultra ST‐Ret *** 25‐Apr‐02 679 ‐‐ 8.50 202.14 8.82 8.57 9.13 9.90 9.73 0.41

Canara Robeco Treasury Adv‐Reg *** 16‐Sep‐03 736 62 9.30 1817.65 7.86 8.25 8.53 9.16 9.08 0.53

DWS Cash Oppor‐Reg **** 25‐Jun‐07 402 113 9.78 14.92 9.10 9.39 9.65 10.36 10.07 1.00

HDFC FRIF‐ST‐Ret *** 20‐Jan‐03 1,170 120 9.16 18.83 8.04 8.53 9.08 9.99 9.51 0.57

IDBI Ultra ST **** 06‐Sep‐10 637 55 9.21 1195.82 8.56 8.84 9.23 9.79 9.82 0.49

Indiabul l s Ultra Short Term Fund - 09‐Jan‐12 343 83 9.32 1070.95 8.94 9.67 9.73 10.31 ‐‐ 0.30

Tata Floater **** 13‐Sep‐05 3,716 19 ‐‐ 1677.80 8.49 8.88 9.18 9.94 9.80 0.24

Templeton India Low Duration Fund ***** 27‐Jul ‐10 2,825 ‐‐ ‐‐ 12.11 9.49 9.53 9.82 10.65 10.26 0.66

Templeton India Ultra Short Bond‐Ret *** 19‐Dec‐07 3,514 ‐‐ ‐‐ 14.29 8.44 8.81 9.37 10.06 9.84 0.86

ICICI Pru Money Market‐Cash ** 08‐Mar‐06 2,176 21 ‐‐ 155.05 8.60 8.83 9.19 9.83 9.87 0.22

IDFC Ultra ST *** 17‐Jan‐06 599 102 9.03 15.55 8.49 9.16 9.82 11.21 10.36 0.19

Rel iance Money Manager‐Ret *** 21‐Mar‐07 8,407 76 9.24 1506.75 8.19 8.49 8.82 9.65 9.41 0.90

SBI SHD‐Ultra ST‐Ret *** 27‐Jul ‐07 7,168 73 8.94 1439.61 8.31 8.62 8.97 9.77 9.63 0.43

UTI Treasury Advantage‐Reg *** 26‐Jul ‐99 7,362 45 8.90 2826.99 8.03 8.55 8.91 9.50 9.40 0.39

Annual Returns (%)NAV Scheme Name

a. Value Research Fund Rating Return as on 14 Sept, 2012.

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Income Funds

Income funds invest in Corporate Bonds, Bank Certificate of Deposits (CDs), Treasury Bills, Commercial Papers (CPs), G‐Sec Bonds etc. Income Funds are pure debt funds hence they are not exposed to equity market risk; however, they are open to interest rate risk. Interest rate risk is nothing but the fluctuation caused in the price of the bond by changes in the yield. Bond price and yield share an inverse relationship. When yield goes up, bond prices fall and when yield goes down, bond prices goes up. Therefore, it is very important to watch the interest rate trajectory before investing in debt funds. It would be appropriate time to invest when interest rates are peaked up and are expected to remain stable or fall in the near future. Longer the tenure of the bond more will be the impact on price due to changes in the yield and vice versa. The Income Funds are further classified based on the tenure of the fund i.e. Short Term (around 1 year maturity portfolio), Medium term (around 3 years maturity portfolio) and

Long Term (around 6‐7 years or more maturity portfolio).

At present interest rates are at a downward trajectory. Lately, the 10 yrs benchmark bond yield has eased from a high of 9% to present level of 8.18% hinting the initiation of downward movement of rate cycle. In a bid to bolster growth, RBI is expected to be seen slashing rates round the corner. At such times it is advisable to give debt funds a shot. At such time it makes sense to look at dynamic bond funds, where in the fund manager have freedom to change the average portfolio maturity from long term to short term and vice‐versa or sitting on to cash at times to get the maximum benefit from the interest rate fluctuations.

Recommended Income Funds:

Scheme Name Fund Launch Net Assets Avg. Mat Yield to Mat Expense

Rating Date (Rs. Crs) No. of Yrs (YTM) % Gr. 3 M 6 M 1 Yr 3 Yrs 5 Yrs Ratio (%)

Income Funds

ICICI Pru Regular Savings **** 06‐Dec‐10 1,971 1.57 ‐‐ 11.68 9.89 9.86 9.49 ‐‐ ‐ 1.55

SBI Dynamic Bond ***** 09‐Feb‐04 2,892 9 8.74 13.82 9.33 10.50 12.09 9.20 5.12 1.55

Birla SL Dynamic Bond‐Ret ***** 30‐Sep‐04 8,659 ‐‐ 9.5 18.85 10.22 10.70 10.30 8.10 9.59 1.19

IDFC SSIF‐MT ***** 09‐Jul ‐03 561 3.25 9.25 19.10 9.85 10.36 9.99 8.58 9.16 1.24

NAV Annual Returns (%)

a. Value Research Fund Rating Return as on 14 Sept, 2012.

Short Term Income FundsClick here for Fund Report Cards

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What does Yield to Maturity (YTM) of the portfolio signify?

It is a rate of return measuring the total performance of a fund (coupon payments as well as capital gain or loss) from the current date until maturity of

the instruments in the portfolio. This means that if the portfolio in its current form is held till maturity, then the return that an investor will get is equal

to the Yield to Maturity of the Portfolio. It however assumes that any flows (in the form of coupons/part of principal repayments) received before

maturities are being reinvested at the YTM rate. If the reinvestment rate is higher/lower, then the total return could be higher/ lower than YTM. Higher

the YTM of the fund, better it is.

What does Average Portfolio Maturity signify?

Debt Funds invest in a number of debt instruments (bonds, gilts etc) each having a different maturity. To get a clear picture about the fund's maturity

profile, funds usually disclose weighted average maturity. For example, if a fund has three bonds in its portfolio of 3‐year (Rs 40,000), 4‐year (Rs 10,000)

and 2‐year (Rs 20,000) maturities, its weighted average maturity would be 2.86 years. However, average portfolio maturity does not indicate the life of a

fund. An open ended fund never matures. Illustratively, if you invest in a debt fund having an average portfolio maturity of 3 years, you do not have to

hold for 3 years. You can sell the next day as well. Average Portfolio Maturity signifies the level of interest rate risk portfolio is exposed to. Lower the

average portfolio maturity, lower will be the interest rate risk of the fund.


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Fortune M FChoic e - Recommended Mutua l Funds 7 …. f the tion ually 10‐15% exposur ncial Calc Getting and qua financia to succe plannin ... Bond price and yield share an inverse