Gold - Investime July 08

8/9/2019 Gold - Investime July 08

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52VolatileMarkets andthe road ahead

56 Literaryforays

10

16 The InflationEconoView

VOL 10-ISSUE 7-July 20 08-Rs. 30 -Total


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An insightful ar ticl e byLaxmi Iyer, this month’scover story delves intothe significance of goldin the Indian economicscenario and the benefits ofinvesting in gold ETFs.

Corporate Office Industry House,1st Floor,159 Churchgate Reclamation, Mumbai 400020022-67168000 Fax : 67168201

Ahmedabad 204, Abhijeet, 2nd Floor,Mithakali Six Road, Navrangpura,Ahmedabad 380009079-26406193/26402353/26402354Dir-26470045 Fax : 079-26465591

Ajmer Shop No.37, Part A, Opp.Daulat Bagh, Ajmer 3050010145-5101013

Bangalore 201, 2nd Floor, H.M. Geneva House# 14 Cunningham Road, Bangalore 560052080-22269271/2 Fax : 080-22269026

Eshwar Tower, No. 99, 21st Main Road,BSK 2nd Stage, Bangalore 560070080 - 26719515/ 9525/ 9535/ 9545Fax : 080 - 26719505

Bhopal301, Second Floor, Kay Kay Business Centre133 Zone-I, M.P. Nagar, Bhopal 4620110755-4247310/7311

Bhubaneshwar 168 A, Shahid Nagar, Bhubaneshwar 7510070674-2540035 / 3260352

Chandigarh SCO 59-60, 2nd floor, Sector 9-D, Chandigarh 1600090172-2747971/0172-2747972Fax : 0172-4635423

Chennai 42, Kuber Towers, Pantheon Road,Egmore, Chennai 600008

044-42145711/42146467/42146641/42/43Fax : 28192923

Cochin 2nd Floor, Thekkekara Mansions,Opp. Kavitha Theatre, M.G. Road, Coch in 6820350484-2352779 Fax: 0484-2361077

Coimbatore Pioneer Complex, Bloc k 4B, 4th Floo r, 1075 (New 720)Avanashi Road, Coimbatore 6410180422-4214901/02

Indore 312-A, City Centre, 570, M.G. Road, Indore 4520010731-2534501, Dir-2432364Fax : 0731-2534501

Jaipur C-61 A, Paradise Building, 301-3rd floor,Sarojini Marg,C-Scheme, Jaipur-302001Dir-0141-5118290/93, 5111577 Fax : 0141-5118294

Jodhpur:Shop No.16 - 17, Ground Flo or, Agarwal Tower,Sardarpura, 1st B Road, Jodhpur 342 002

Kanpur Unit 210, Kan Chambers,

14/113, Civil Lines, Kanpur 2080010512-3025529/302489

Kolkata J K Millennium Centre, 46D,J. L. Nehru Road, 2nd Floor, Kolkata 700071033-22883001/2, 22882590/ 22882596/22882597Fax : 033-22882581

Lucknow 1st floor, Shalimar Square, 126/31,B. N Road, Lal Bagh, Lucknow 2260010522-2294152/53/2200652/2230988Fax : 0522-2294110

LudhianaSCO 28, 2nd floor, Feroze Gandhi Market,Ludhiana 141001

MumbaiFortApeejay House, 2nd Floor, Opp. Lion Gate,S.B. Road, Fort, Mumbai 400001022-66338641, 22824350 Fax : 22881088

BSDL BRANCHES

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Toll Free 1800-22-7000

CONTENTS

REGULARSNEWS TIM E 08

INVESTIM E PRIM E NUM BERS 21

SELECT PERFORM ANCE 2 3

EQUITY FUNDS & DEBT FUNDS 3 0

PORTFOLIO COM POSITION 3 7

HE GOLDEN INVESTM ENT

OVER STORY

THE INFLATION ECONOVIEW1 6Since the subject of India’srising inflation is stillmaking headlines, in thisarticle Sundar Shankarandwells upon the roles thatdifferent countries have

played in creating theinflation animal.

ChurchgateIndustry House, Gr. Floor,159, Churchgate, Reclamation,Mumbai 400020022-67168242/43 Fax : 22028872

WorliAditya Birla Centre, Ground Floor, Worli, Mumbai 400025022-66525000

AndheriOffice No. B-407, 4th Floor, Andheri Vertex Vikas PremiseCo-Op. Society Ltd., Sir M. V. Road, Andheri (East),Mumbai 400 069

022-6510 2605 / 6510 2606ThaneNos. 7 & 8, 5th Floor, Nalanda Chambers, ‘B’ Wing,Near Hanuman Temple, Gokhale Road, Naupada,Thane (West) 400 602022-6721 0222 / 6721 0223

Nagpur 202, 2nd floor, Abhinav ArcadeAbhyankar Nagar, Nagpur 4400100712-6462898/2899

New Delhi 203, Ashoka Estate, 24, Barakhamba Road, New Delhi 11011-23312154/55/56/57/58/59, Fax: 011-23358633

Uco Bank Building, 2nd Floor,Parliament Street, New Delhi 110001011-41515354/55/30421124/27

311, 3rd Floor, Northex Towers, Pitampura, Delhi- 34

Noida 413, Ocean Complex, Sector 18, Noi da 2013010120-3080174/ 3080175

Patna 204, Grand Plaza, Frazer Road, Patna 800 001

Pune Kapil Towers, Building ‘A’, 2nd Floor,Near RTO, Dr. Ambedkar Road, Pune 411001Dir-020-66012177/2178, 66014631Fax : 020-66014632

Rajkot:201, 2nd floor Dhanrajni Complex, Dr.Yagnik Road,Rajkot 360 001

Ranchi:Arjan Palace, 1st floor, 5 Main Road, Ranchi 834 001

Secunderabad 4th Floor, May Fair Complex,S.P. Road, Secunder abad 500003040-66310955/56/62, Dir-66310956Fax: 040-66337341

Siliguri 3rd Floor, Shri Radha Building , Iskon Road, Behind City Siliguri 7344010353-6459671/72

Surat Office no. 312, Plot 2, Jolly Plaza, Athwa Gate, Surat 3950261- 3075838/39

Trichy Ramnathan Arcade, 1A, 2nd Floor, 16 Keelachatram RoaTennur, Trichy 620017

Vadodara 1st floor, Sidharth Complex, R.C.Dutt Road,Vadodara 3900070265-6646441/442

Varanasi Shop No.4 & 5, 2nd floor, BC Tower, Shastri Nagar CrossNear Saajan Cinema, Sigra, Varanasi 2210100542-2222916/2917

VijayawadaD-58-2-2/1, II Flo or, Bagaiah Street, Patamata,Vijayawada 5200100866-6455872/3

Visakhapatnam Bhuvaneshwari Plaza, D.No. 47-10-1 Dwarakanagar,Visakhapatnam 5300160891-6638112/8113

VOLATILE M ARKETS AND THE ROAD AHEAD5 2In view of the current bleak economicscenario, A. N. Shanbhag summarisesthe various factors that have causedincreased market turbulanceoff late.

With equity markets witnessing asharp drop, Harshad Patwardhan,Equity Investment Manager

for JP Morgan reveals somebeneficial investment strategiesthat can be implemented tominimise losses.

IN VESTM ENT STRATEGY1 2

LITERARY FORAYS5 6Explore different facets of life with our selection of thebest fiction and non-fiction books of the month.

Printed an d p ub lish ed by B irla S un Life D istrC om pan y Lim ited. Published from Ind ustry H ouFloo r, 159 ,C hurchgate Re clam ation, M um bai - 4and printed at Sp en ta M ultim ed ia, Pe ninsu laSM athuradas M ill Co m poun d, N . M . JoshiLow er Parel, M um bai - 40 0 01 3. Tel. : 24 81w w w .spen tam ultim edia.com

For ad vertisem ent and sub scription con tact: A nil N oAG M M arketing, B irla Su n Life D istribu tion C om pan y

Ph oto C ourtesy: w w w .stockxpe rt.com andw w w .dream stim e.com

DISCLAIM ER CLAUSEThe inform ation pu blishe d is as p er the data provvarious M utual Fund s. W hile u tm ost care ha s be en tm aintain accu racy in the d ata, the co m pan y does nany respon sibility for errors in the sam e. The view s/oexp ressed in the variou s articles are that of the authorcom pany m ay no t subscribe to the sam e e ither in pfull. A ny p erson inve sting on the basis of the data puin Investim e w ill be do ing so at the ir ow n risk. Birla SD istribu tion Co. Ltd.


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Subhik sha buys s t ake in Blue Green Constr uct ions and Invest ment s LtdSubhiksha Trading Services Ltd has bought a majority stake in Blue Green Constructions and Investments Ltd, Chennai. The companruns the country’s largest food and grocery discount retail chain (branded). Subhiksha will get merged into Blue Green, which is a reversmerger, which in return would help unlisted Subhiksha get listed, thus bypassing the normal process. Blue Green Constructions, an NBFC(non-banking finance company), is listed on the Madras Stock Exchange. Subhiksha has paid a consideration of Rs 5 crore paid-ucapital to acquire 40% stake in Blue Green from its promoters at par. Post-acquisition, the promoters of Blue Green will continue to hol27% stake.

Glenmark acquires 7 brands in Poland to targetCentr al & Eastern Eur ope Glenmark Pharmaceuticals Ltd has struck a deal with Actavis, Iceland to acquire 7 pharmaceuticalbrands in Poland, for an undisclosed sum. The acquisition has been executed through Glenmark’s

Czech subsidiary Medicamenta. Glenmark is targeting to build a branded business in Centraland Eastern Europe. The acquisition would give the Mumbai-based drug company access to thePolish market, touted to be the largest pharma market in Central and East Europe. According toindustry estimates the pharmaceutical market in Poland was worth about US$7 billion in 2007,and is growing at about 8%.

LIC Housing Fin set s up f inancia l serv ices armLIC Housing Finance Ltd set ups a new subsidiary to sell financial products. The new company

would market and distribute all financial products such as home loans, insurance, mutual funds,credit cards and other third party products The company also plans to launch a venture capitalfund this year. The fund was incorporated in February last and may begin with a corpus of Rs

500 crore to start with. LIC HFL has registered a 38% growth in loan disbursements in the lastfinancial year at Rs. 7,071 crore, higher than the industry’s average growth of 8-9%.

IOC and OIL acquire 12.5% stake in Rel iance’sEast Tim or bl ock Indian Oil Corporation Ltd (IOC) along with Oil India Ltd (OIL), would acquire an equitystake of 12.5% each in the project located offshore oil block in East Timor. Reliance will hold amajority stake in the block and would operate in an area spread over 2,384 sq km. Sources saidthat IOC and OIL have made a financial commitment of US$27 million. The entities are nowgoing to approach the East Timor Government for approval.

8 Investime JULY 20 08

Tech Mahindra has bagged adeal worth US$24 million (aboutRs 111 crore) to assist TelecomNew Zealand for an 18 monthperiod. In this deal however,there would not be any transferof employees from Telecomto the Indian company’s fold.Mr. C.P. Gurnani, President(International Operations)of Tech Mahindra, statedthat, “The city-based telecomsolutions provider would beresponsible for programmemanagement and end-to-endsystems integration of Telecom’sNext Generation Telecom(NGT) retail transformationinitiative”. Currently, TelecomNew Zealand is in process ofspending NZ$1 billion a yearon communication networksand Internet-based services.

ECONOM Y & CAPITA L M ARKETSINDUSTRY - ECONOMY - INTERNATIONAL NEWSTIME

GM R a c q u i r e s 5 0 %st ake of I nt ergen, a USpow er companyGMR Infrastructure Ltd, Hyderabad hasacquired 50% stake in Intergen, a powercompany based at Burlington, US. The dealhas amounted to US$1.1 billion. The companyhas acquired the stake from AIG HighstarCapital II fund. The deal is expected to closein the 3rd quarter of 2008. GMR Infra hastaken a bridge loan of US$1.1 billion from aconsortium of five domestic banks, including

Axis Bank and Canara Bank, to fund theacquisition. GMR would jointly own Intergen

with the Ontar io Teachers’ Pension Plan(Teachers’). Teachers’ has been a 50% ownerof Intergen since 2005. With US$108.5 billionin net assets, it is the largest single-professionpension plan in Canada.

Tech M ahindr a entersa deal worth US$24m i l l i o n w i t h N e wZealand company

Pos t 50% d rop i n ne tpro f i t Q4 20 08, Un i t echp lans d ivers i f i ca t ionUnitech Ltd has reported its consolidated netprofit for the 4th quarter that ended in March2008, to Rs 360.20 crore, which accounts toapproximately 52% drop. The company’s netprofit was pegged at Rs 747.90 crore in Q4of FY07, when sale to UCP had contributedsignificantly to its bottom line. Currently,Unitech is planning a massive diversification;

it has announced its plans to dilute 26% stakein its telecom arm to a yet-to-be-identifiedstrategic foreign partner. Unitech wouldalso raise about US$1 billion from privateequity to fund its hospitality venture as wellas commercial projects in Mumbai over thecoming one year.


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· RBI h iked repo ra te by 50basis po in ts t o 8 .50% andthe CRR to 8 .75%

· I n d i a ’ s W P I r o s e t o1 1 . 8 9 % — t h e h i g h e s ts ince 1995

· A d i t y a B i r l a G r o u pa c q u i r e s 4 0 . 8 % s t a k ein Sp ice Te lecom, IdeaCel lu lar to enter Mumbaioperat ions

· I n d e x o f I n d u s t r i a lProduct ion ( I IP) fo r May2 0 0 8 h a s d e c l i n e d t o3.80% as agains t 1 0.60%as in May 2007

· Fr e s h c r e d i t f e a r s a r eg r a d u a l l y s w e e p i n gg loba l f inanc ia l markets ,push ing wor ld s tocks tothe i r lowes t l evels s incemid -2006

· T h e I n d i a n 1 0 Ye a rG i l t y i e l d c r o s s e dpsycho log ica l res is t anceo f 9 . 2 5 % ; t h e y i e l d i scu r ren t l y a t 9 .34%

· Japan record ed a 10-y earh igh w i th p r i ce in f la t ionr i s ing to 1 .20%

· A t t h e G 8 S u m m i t , t h eI n d i a n P r i m e M i n i s t e rreaf f i r ms the commit mentto go ahead w i t h the c iv i ln u c l e a r c o - o p e r a t i o nw i th USA

NEWSTIME

GLOBA L & CURRENCY NEWS

JULY 200 8 Investime

China & Uni t ed Sta tes , t i es a t c r uc ia l s t ageChina’s President Hu Jintao discussed with U.S. Secretary of State Condoleezza Rice that relationsbetween China and the U.S. were at a “crucial stage”, linking the past to the future. Ms. Ricestated that the U.S. would take measures to stabilise its currency and prevent further slowdown ofthe global economy, as the unstable factors in the world economy are posing challenges for bothdeveloping and the developed countries.

Bi l l Gat es Ret i r es After a two year transition, Bill Gates prepared to step down from the day-to-day running ofMicrosoft, which he founded in 1975. He remains Chairman and will be involved in some projects

along with the company’s Chief Executive, Steve Ballmer. The bulk of Mr Gate’s time will nowbe devoted to his foundation, the world’s richest philanthropic institution.

Saudi A rab ia to incr ease oi l p roduct ionSaudi Arabia held a hastily convened summit on energy that brought together oil producers andofficials and political leaders from consumer countries, including Gordon Brown. Everyone agreedthat the record high price of oil was a worry, but the Saudis offered little relief other than to promiseto increase production by 2,00,000 barrels a day, which was in line with expectations. The kingdomdid take analysts by surprise, however, by saying it would seek to raise its capacity to as much as15 milion barrels a day by 2018, up from the current 11.4 million.

Yahoo, Google enter an ad agreementGoogle and Yahoo have reached an ad agreement. Under the agreement Google would deliver adsnext to some of Yahoo’s search results and on some of its websites in the U.S. and Canada. Theagreement would also strengthen Google’s dominance over the lucrative search advertising market.It was signed after Yahoo rejected a proposal by Microsoft to acquire both Yahoo’s search businessand a minority stake in the company. The non-exclusive deal is aimed at giving a lift to Yahoo’sfinances, and the company said it would generate an additional US$250 million to US$450 millionin operating cash flow in the first year.

L e h m a n B r o t h e r s a n dUnit ech t o come t oget herUnitech announced that Lehman Brothers RealEstate Partners would acquire a 50% stake inthe domestic realty firm’s project on the WesternExpressway of Mumbai for a consideration forUS$175 million (about Rs. 740 crore). Theinitial phase involves the development of onemillion sq. ft. of office space out of the totaldevelopable area of about 18 million sq. ft.

Deut sche Bank p lans t op i c k u p s t a k e i n D e l h iStock Exchange

The Government of India has cleared theDeutsche Bank proposal for acquisition ofstake in Delhi Stock Exchange (DSE). TheDeutsche Bank has proposed to acquire anapproximately 5% stake in DSE. FinanceMinister P. Chidambaram has cleared theproposal, which would attract foreign directinvestment of Rs.13.47 crore.

Ind ia, Sr i Lank a f in al i sed Compr ehensi ve Economi cPar t nersh i p Agr eementIndia and Sri Lanka have finalised the draft for the Comprehensive Economic Partnership

Agreement (CEPA), which would boost trade and also open up service and investment sectors.

The contours of CEPA were concluded during the two-day talks between the Indian team led byCommerce Secretary G.K. Pillai and his counterparts in the island nation. The first country with

which India entered into a CEPA was Singapore. India and Sri Lanka expect the volume of tradein goods and services to rise from US$516 million to US$1.5 billion by the time CEPA is fullyoperationalised in 2012.

NEWS SNI PPETS


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the gold that has been mined till date. It the metal’s natural ability to attract humapossessiveness that makes gold the natur

currency of the world, thus helping gold tdisplay characteristics quite similar to thosof ordinary money.

GOLD DYNA M ICS IN M ODERN ECONOM Y

It is a well-known fact that the price/valuof any commodity or service is determineby the interplay of demand and supplyIn case of gold, it is largely demand thais the major determinant for gold price(and profits from its investment). Despitthe fact that gold demand is largely bein

determined by jewellery purchases, yet thinvestment aspect of gold purchase stiremains at around 20%. Of that againnearly 50% of the gold investments th world over are being made through ETFs

10 Investime JULY 2008

I f one pondersa l i t t l e on t he

h i s to r y o ft he ‘hum an

econom y ’ , onew ould real i se

t hat desp i t eal l humanprosper i t y s ince

c iv i l i sa t i onbegan, i t i s go ldalone t hat s t i l ll i ngers around

I

f one ponders a little on the history ofthe ‘human economy’, one would realisethat despite all human prosperity since

civilisation began, it is gold alone that stilllingers around.

There have been various phases inhuman history (especially post-Bretton Woods) when it was theorised that finally,“the age of gold” may be nearing an end,the reason being newer inventions inmoney, which made exchange more andmore sophisticated. As paper money gainedacceptance in the 19th and 20th centuriesand better methods of exchange evolved,the need for gold as a ‘store of value’ keptdepreciating. So money expanded frompaper to plastic to digital. And the means ofexchange too, expanded. But then did thatreally affect gold? And if not, then why?

What we are telling you is that moneyis only as good as the exchangeit can bring for you, either nowor later! And this is largelydependent on the willingnessof the 2nd and 3rd parties toaccept such money. And thisis where gold comes in. Gold’s value is embedded in human

history and collective psychology.Gold derives its economic valuefrom the basic human urge topossess it.

It is therefore no surpriseif one is told that the Indianpublic alone holds around15,000 tonnes of gold—worthmore than US$450 billion. Thisaccounts for nearly 10% of all

COVER S TORY Lakshmi Iyer

The

InvestmentGolden


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What this tells us is that while around64% of gold purchases are for self-aestheticreasons, yet around 20% of the purchasesare being done with the purpose of realising

the potential value of gold. This rise indemand for gold investment is around 41%from the same period last year. But then what has prompted such an increase ininvestor-buying for gold?

INVESTOR REASONS WHY GOLD

GLITTERS!

The initial reasons for rallying in goldand its correlated asset, oil, had been thelarge liquidity glut that hit the marketduring the 2001-2005 period. The dollar

denominated liquidity scrambled to acquireassets globally, leading to inflation in pricesof almost all the major asset classes. Goldtoo, witnessed that climb by growing nearly19% year on year in last 6 years.

However, crude oil raced ahead at 33% year on year, and grew by 5 times duringthe same period. In other words, while in2002 around 15 barrels of crude oil couldbe obtained for an ounce of gold, today you would get around 7 barrels for the sameounce. But given the tendency for oil andgold prices to move in tandem, it is quite

logical that either the oil has to cool downor the gold has to heat up further.

But more importantly, and as statedearlier, gold has the tendency to behavelike currency. And this actually happensquite pronouncedly when faith in the bestavailable alternative is faltering, in this casethe US Dollar.

Since late 2007, the US fed has actedto bolster its decelerating economy by

drastically reducing the interestrates. The collateral effectof this was the weakeningof international investorconfidence in the dollar, and the

former consequently scrambledto acquire value in othercommodities, especially oil andgold. To put that in perspective,in just the last year alone, goldhas rallied by nearly 36% whileoil has moved by 86% till date.Furthermore, it is expected thatas the US economy declines

further, the gold prices may gatherfurther steam.

A far more interesting thing has beenthat while the growth in physical hoardingfor gold as an investment has been largelynegligible, gold investment by way of ETFhas grown by nearly 100% since last year.Some may rightly argue that this waslargely due to the low base effect. But yetit is unavoidable to overlook the fact thatETF has been the only segment of goldconsumption that has grown positively andoverwhelmingly in the first quarter of 2008.So the eventual question that arises for thepurpose of argument is: Why ETFs?

UNRAVELING GOLD ETF! At the risk of repetition, we know thatgold ETF is nothing but pure gold, tradedonline through a medium of exchange.Normally, each unit of gold ETF is worthapproximately 1 gram of gold at any-point of

time. The investor’s take-away from GETis that it allows the investor to invest in gol without bothering about the purity, th

security or the liquidity of gold investmenthat is attendant with gold hoardingGETF’s online tradability and transactability is exactly like any other stock scripthus making buying and selling almointra day affairs—an idea quite difficu with physical gold. In other words, GETgives you the ability to buy, sell, short-seor long-hold gold at convenience.

This idea, though nascent, has caughon significantly all over the world except iIndia, largely due to lack of awareness abou

it here at home. This perceptibly gives risto information asymmetry and provideadded arbitrage opportunity for potentiinvestors in the Indian market.

Nonetheless, with oil predicted to toucUS$150 per barrel in the short run anUS$200-400 per barrel in the medium tlong run, the possibility that gold (which a highly ‘oil co-related’ asset) would remaidormant is unlikely. Even with a historiclow of 6 barrels per ounce, gold is projecteto grow to US$1000 if oil goes to US$150 Thus in the medium to long run, th

possibility of a gold rally remains strongethan ever.

So, as the saying goes, ‘Putus aurumnunquam perdo lustre’— ‘Pure gold neveloses its lustre’, it is important to know anbe ready when gold’s ‘lustre’ is brightest.

(The author is Vice President & Hea—Products, Kotak Mahindra AsseManagement Co. Ltd.)

The in vest ors ’t ake-aw ay f r omGETF is t hat i t

al l ow s t he inves to r

t o i nves t i n go ldw i t hou t bot her i ngabout t he pur i t y,

t he secur i t y o r t hel i qu i d i t y o f gol di nves tm en t t hat

i s at t endan t w i t hgo ld hoard i ng

JULY 2008 Investime

1

COVER S TORY


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manner and not over-react to markemovements and noise in the market placInvestors should think twice before exitinthe markets as these times will eventuallfade away and the opportunity loss coulbe high. Investors who are waiting on thfence to make their entry at the markebottom should phase out the investiblsurplus over a period of time, say 3-months. The biggest challenge for all ous is the test of our patience at this poinof time. One can also look at a long-sho

strategy wherein one does not need to taka view on the market direction.

WHAT IS A LONG-SHORSTRATEGY?In a long-short strategy, an investor catake a view about relative performancof two stocks rather than a view on thdirection of a broader equity marke

While there can be different ways o

THE INDIAN EQUITY MARKETHAS WITNESSED A SUBSTANTIALSLIDE DOWN FROM ITS PEAK

LEVELS. THIS HAS RESULTED ININTENSE CAPITAL EROSION FORMOST INVESTORS. WHAT ARETHE INV ESTM ENT STRATEGI ESTHAT MIGHT BE OF USE IN SUCHMARKET CONDITIONS?

Through these turbulent times, we continueto focus on identifying strong businessesand estimating their values, based on ourframework involving EPS growth, dividendpayout and incremental return on equity.

We do expect this disciplined approach to

pay off in the medium to long term. While we do not expect the current uncertainenvironment to clear soon, a bulk of thisseems already in the price. If one looksat even some of the large corporates, onefinds that the current valuations are veryundemanding. We are using this phase ofthe market to selectively switch and buildpositions in businesses that appear betterplaced on a relative basis using impliedgrowth analysis. In general, we have beentrying to move away from politically

sensitive businesses and sectors, and moreinto areas less susceptible to governmentinfluence such as IT services, consumersand pharmaceuticals. While catching thebottom is almost always impossible in thecurrent market environment, regular anddisciplined investing is likely pay off in themedium term.

We feel that through these turbulenttimes, it is prudent to think in a rational

INTER VIEW Harshad Patwardhan


Thr ough t heset u rbu len t t imes,

w e con t inuet o focus on

iden t i f y i ngs t rong

busi nesses andes t im at i ng t hei rvalu es, based onou r f r ameworkin volv in g EPS

grow t h , d i v idendpayout and

inc rementa lre tu rn on equ i t y

In general , w ehave been t ry ing

t o move aw ayf r om pol i t i cal l ysens i t i ve

bus i nesses andsector s , and

m ore in t o areasless suscept ib l et o governm ent

in f l uence

INVESTMENTStrategy


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constructing these strategies, we tend tolook at it as an extension of our active fund

management skills. As a team, we meetcompany management on a regular basis tohave accurate understanding of businesses,competitive landscapes, industry dynamicsso on and so forth. What transpires in thesemeetings could either lead to a positive or anegative conviction or even a “not so sure”type of response. Typically, in a long-onlyportfolio, positive conviction stock findsits way while one tends to avoid taking anyposition in the negative conviction ideas. Ina long-short strategy one can play on both

positive and negative conviction ideas. Atrade can be structured whereby you go“long” on your positive conviction idea and“short” on your negative conviction idea.

HOW DOES IT WORK? Typically, these strategies are based ona hypothesis, which if proved right, willlead to the long position out-performingthe short position. When this happens thetrade will make money. We typically tendto have a hypothesis based on company

fundamentals, sector trends or changesin macro variables. It is also possible tohave these strategies based on technicalor statistical trends and expectations ofmean reversion. It is important to note thatthese strategies do not depend on marketdirection to make money. Although themarket and both the securities may betrending down, as long as the security onthe long side goes down less than the short

side, the trade still makesmoney.

HOW DO THEFUNDAMENTALS AND

SELECTION OF THECOM PANY PLAY A ROLEIN SUCH STRATEGIES?

The choice of companies w o u l d e n c o m p a s sfundamental themes suchas EPS growth, ROE andP/E multiples. However,

we must remember thatthe under ly ing themecould be either based onfundamentals or based on

some macro economic theme.For example, there could be a macroeconomic hypothesis that the crude oilprices will remain at high levels (pleasenote that the bet is not on the actualprice), we could then construct a tradeby going “long” on a producer of oil andgoing “short” on a consumer of oil. Thetrade could be Long Cairn Energy, Short

Jet Airways.

DOES THIS STRATEGY WORK UN DER

VARIED MARKET CONDITIONS?WHAT HAPPENS WHEN MARKET ISRANGE-BOUND OR WHEN IT MOVESIN A DIRECTION?

As explained earlier, this kind of a strategyis quite indifferent to market movementsin either direction. The endeavour is

Typ ic al l y , t hesestrategies are

based on a

hypothes is ,w h i ch i f p rovedr i gh t , w i l l l ead

t o the longposi t i on ou t -

per f o rm i ng theshor t posi t i on

In a long-shor ts t ra t egy, aninves t or cant ake a v iew

about re lat i veper f orm ance of

t w o st ocks rat hert han a v iew ont he d i rec t i on o fa broader equ i t y

market

to generate returns by taking a viewon relative performance rather than aabsolute one.

HOW IM PORTAN T IS “ VIEW ON THM ARKET” IN SUCH STRATEGIES?

The strategy does not take any view on thmarket. The strategy is a combination oa “top down” and “bottom up” approach

The approach is more relevant from thperspective of an underlying theme.

WHAT WILL BE THE DURATION OSUCH IN VESTM ENT STRATEGIEAND HOW DOES THE INVESTORBENEFIT FROM IT?

There are no fixed time lines assigne while executing the trade. Each trade coulhave different timelines. The underlyinobjective will always be to generate returnfrom the day the capital has been puto play.

Investors investing in such strategieshould look at an investment horizon of

minimum of 12-18 months. However, it worthy to note that such a strategy coulact as a good compliment to an investorexisting long-only portfolio.

An Inter vie w with Mr. HarshaPatwardhan (Investment ManagerEquity), JP Morgan Asset ManagemenIndia Private Limited

INTER VIEW



9/4216 Investime JULY 2008

M

y previous column discussedissues related to policies that areunder implementation to control

inflation. Since the subject continues tomake headlines, in this article I dwell on the

role of different countries in creating theinflation animal.

When supply falls short of demand,price has to go up. Thus, demand adjustsitself to match the aggregate supply leveland ensures equilibrium in the economy. This increase in prices is inflation.

What supply and demand factorsare at work in the current bout of

global inflation?

1. INDI A, CHINA AN D DEVELOPING

COUNTRIES

Economic activity has increased in these

countries during the last decade. Thehigher levels of economic activity haveraised the demand for oil and industrialcommodities in the region.

The incremental economic activityhas led to higher income in the hands ofthe people in these developing countries. When income levels go up in the richercountries, conspicuous consumption

goes up; in developing countries, wheincomes go up, consumption of basnecessities rises; hence the rise i

consumption of food. Any vegetarian traveller to China ca

vouch for the fact that the country trigge vegetarian fret and non-vegetarian pridMuch of non-vegetarian fare comprisebirds and animals, which in turn survivon food and other primary commoditieScientific research has shown that thsame intake of calories, when it come

through the non-vegetarian route oconsumption of animal meat, causes much higher consumption of underlyinfood and primary commodities (by thbirds and animals) in the economy, acompared to consumption of vegetariafood. Thus, the Indian vegetarian habittempered the inflation in food article while the Chinese non-vegetarian habi

aggravated it.

When supp lyfa l l s shor t o f

demand, pr ic ehas to go up.Thus, dem andad jus t s i t sel f

t o match t heaggregate

supp ly l eveland ensures

equ i l i b r i um i nt he econom y.This increase

in p r i ces i si n f l a t i on

Chi na has beeninvo lv ed i n a

superb gameof supp ly cha insecu r i t y i n

impover ishedcoun t r i es i n t heAf r ican reg ion ,

w h ich areo therw i se r i ch i nm inera l r esources

The INFLATIONEconoView

FEATURE Sundar Sankaran


10/42

4. THE US

The US has contributed to the inflationin several ways:

a. Excessive Consumption Why did economic activity in the

developing countries go up? A significantcontributing factor was higher exports tothe US. This is evident from the hightrade deficit numbers of the US. Whydid the US import more?

i. US Asset Bubble

The cheap money policy of the US ledto rise in prices of stocks as well as realestate. It is normal human psychology

that when the value of assets peopleown goes up, people feel good and endup consuming more.

ii. Overvalued US Dollar Although the economy was in deficit,the US dollar was valued higherthan its inherent strength. Thismade it cheaper for US citizens to

import. When anything becomescheap, its consumption goes up.Basic economics!

b. Bio-fuel Policy

It has incentivised cultivation of maize(for conversion into bio-fuels) somuch that farmers have switched from

cultivating food to cultivating maize. This has impacted supply of food grains within the US.

c. Speculation in Oil Futures

When anything becomes cheap, its usegoes up. Again, basic economics! In theUS, the minimum cash outlay for oilfutures was so low that anyone’s servantcould dabble in oil futures. The holdingof such contracts has mounted.

A purist would argue that thesefutures ultimately get reversed. Hence

there is no net addition to demand foroil. So futures are not a contributingfactor to increase in oil prices. Theargument of a purist is right in a microsense. But then, if each increase in oilprices leads to more people joining thegang of oil futures speculaters, then thebubble will keep getting bigger.

When will the bubble burst? After theelections in the US this November?

The complex relationship betwee

the different factors can be seen in thaccompanying chart.

WHAT N EXT?

The US asset bubble has already burst. Th“feel good” has given way to “feel badConsumption is down and recession feaare in the air. To prevent a recession, Uinterest rates have been kept low. Similarlyto prevent an asset price meltdownmore money has been made available tthe financial sector. The US Dollar, i

the meanwhile, has been hammered bthe Euro.

If, as is expected, the democrats comback to power in the US, focus on th“internal economy” will increase. Just as BiClinton had to clean up the US economafter the first war on Iraq, legacy of GeorgBush Sr., Barrack Obama may have to doclean up of the second war on Iraq, legac

of George Bush Jr. History repeats itself sinterestingly—the repetition would havbeen even more interesting if Mrs. Clintohad inherited the clean up job that M

Clinton inherited eight years ago. A weak US dollar, lower consumptio

democrat clean up et cetera will bring somsemblance of order to the US Trade Defici The US Dollar may recover some of i

lost ground.Back home in India, we thought goo

times are forever. We failed to clean up thmacro-economic numbers while the goin was good. When tax and non-tax revenue

2. SPECIFICALLY CHINA

China has been involved in a superb game

of supply chain security in impoverishedcountries in the African region, whichare otherwise rich in mineral resources. The Chinese strategy of corneringsupplies from these countries limitsthe free supply of mineral resources inthe market.

Besides, the Olympics is the bigupcoming event in China. The Economist

reports that China is so keen to minimise

the pollution levels during the event,that it has put limits on coal-fired power.Consequently, oil-fired power stations(which cause lesser pollution than coal)have been in the thick of action. Hence,there’s been a significant increase in oilpurchases by China since April 2008.

3. IRAQ, NIGERIA

Both countries are saddled with securityproblems, which are consequentlyaffecting the oil exploration and supply

from these countries.Further, over a period of time, oil prices were soft. So oil exploration companiesdid not find it economical to exploresome of the more difficult oil wells.High oil prices will now give a fillip to

oil exploration activities worldwide. Butit will take several years for this to yieldhigher oil supplies.


FEATURE

High oi l p r i cesw i l l n o w g i v ea f i l l i p t o oi lexp lora t ion

ac t i v i t i eswo r l dw ide .

B ut i t w i l l t ak eseveral years

f o r t h i s t oy ie ld h igher o i l

supp l ies


11/42

went up, we indulged in more largesse.Now the growth engine is beginning to

stutter. But we have gotten used to higherspending levels.

Official budget deficit numbers are

near 3.5% of GDP. The real numbers, aftercorrecting for accounting jugglery, wouldbe in excess of 10% without consideringthe impact of the new pay commissionand an economy that will not grow at thesame rate.

The new pay commission hasrecommended one more round of increasein salary levels, without any linkageto productivity gains. This will gettranslated into higher demands at eachlower level of government. The previous

pay panel recommendations had a keyrole in destabilising the central and stategovernment finances a few years ago. The

growth engine was beginning to bring theconomy out of its problems. Now the newpay commission recommendations wihave to be supported by an economy, whicis need of vitamins. Even in India, histor

repeats itself, so interestingly!But all is not lost. The oil bubble i

yet to burst. Rains being normal, the foo

crop should be good. And we seem to havavoided an early election, at least for thtime being. Let us hope all these factorconspire to take the Sensex back to 20,000

(The author is a leading consultant and iHead of Finberry Academy)

The US assetbubbl e has

al r eady burs t .The “ f eel good”

has g iven w ayt o “ f eel b ad ” .Consumpt ionis dow n and

recess ion f earsare in t he ai r

JULY 2008 Investime

1

FEATURE


12/42

M arke t V iew s

THE DOM ESTIC M ARKETS

Te markets continue to be under pressure f rom the very factors thathave been creating the negative current since the last seven months. Teimpact of these factors has deepened over time and the indicators have

worsened. Te continuing inflationary situation, the dwindling liquidity,the expectations of large supply at the primary offers in both gilt andcorporate placements and the official stance of the policy of tightening

if required, have all contributed to the tightness in interest rates.

Te WPI edging closer to the 12% mark and with no respite expectedin fuel costs and signs of primary products as also commodities beingone of resilience in prices would point towards a strong bias in favour

of the rates stabilising at higher levels.

Te ten year benchmark yield has crossed the psychological 9.20% leveland is comfortably perched at around the 9.45% level. While we maysee the rates showing a tendency to move up further it may be a paying

proposition to start looking at strategic positions with a 12-18 monthstime horizon.

As far as equities go, the bearishness that has embraced the marketcould continue to envelop the sunshine for a longer while because of two

factors which are very basic to the performance of the equity markets.Interest rates have to start moving lower for equities to do well becauseinterest rates is the single major influence on equity prospects at different

levels. Also, we need to see the most active participants in our marketsfor a long time, the FIIs coming back. Tis may be possible only if theyderive comfort from the improvement in overall economic scenario andmoderation in problems that they face elsewhere mainly from the sub

prime problems etc.

Te rise in interest rates, the gradual slowdown indicated by the fallin the index of industrial production and more than anything else, theemerging political situation, would all have their own part in deciding

which way the markets would move in the immediate term.

Te equities may target 12650 on the index while on the upside 14800and 15300 and 16100 would offer strong resistance. A look at the

valuations would reveal how cheaply the markets are priced. But theparadox is that when the valuations were expensive, buyers still crowdedin at very high index and valuation levels. Scientifically, cheaper valuationsshould attract investors. But it will be only after the rain of negative

factors recede and sunshine takes over.

Sensex

D ow Jones

10 Years

WPI



13/42

INVESTIM E PRIM E NUM BERSP e a k s a n d t r o u g h s

Index Name June-08 May-08 Absolute (%)

INDIAN INDICES

EQUITY

BSE SENSEX 134 61.6 164 15.57 -17.9 9

BSE MID CAP 5386.48 6760.54 -20.32

BSE SMALL CAP 6701.96 8133.04 -17.6

BSE100 7029.74 8683.27 -19.04

BSE200 1644.18 2038.22 -19.33

BSE 500 5215.37 6474.97 -19.45

S&P NIFTY 4040.55 4870.1 -17.03

CNX MIDCAP 5238.85 6562.7 -20.17

CNX NIFTY JUNIOR 623 3.2 8221 .35 -24 .18

SECTORAL INDICES

Brandex 2268.28 2658.47 -14.68BSE AUTO 3585.62 4355.76 -17.68

BSE Bankex 5915.98 7714.59 -23.31

BSE CD 3477.6 4320.82 -19.52

BSE CG 10080.69 13150.64 -23.34

BSE FMCG 2080.33 2427.76 -14.31

BSE IT 4019.82 4643.79 -13.44

BSE METAL 13207.3 16914.63 -21.92

BSE Oil & Gas 9009.16 10396.85 -13.35

BSE PSU 5666.42 7079.66 -19.96

BSE Realty 4543.47 7008.66 -35.17

BSE Teck 3043.99 3615.2 -15.8

BSE-HC 4164.33 4395.99 -5.27

WORLD INDICES

Dow Jones 11350.01 12638.32 -10.19

Nasdaq 2292.98 2522.66 -9.1

FTSE 5625.9 6053.5 -7.06HangSeng 22102.01 24533.12 -9.91

KLSE 1186.57 1276.1 -7.02

Kospi 1674.92 1852.02 -9.56

Nikkei 13481.38 14338.54 -5.98

Strait Times 2947.54 3192.62 -7.68

Taiwan Weighted 7523.54 8619.08 -12.71

MSCI Emerging Markets Index 44655.73 49651.13 -10.06

MSCI India Index 357.19 438.19 -18.49

MSCI World Index 1402.12 1525.72 -8.1

DOW JONESSENSEX

JULY 2008 Investime

21

INDUSTRY MONTHLY AVERAGE AUMs ( Rs. in Crores)

Fund House June-08 May-08 Change % Change

AUM above 30,000 Crs.

Reliance Mutual Fund 90813.45 98430.93 -7617.48 -7.74

ICICI Prudential Mutual Fund 59473.59 59093.62 379.97 0.64

HDFC Mutual Fund 52710.81 56107.29 -3396.49 -6.05

UTI Mutual Fund 50770.57 54651.68 -3881.12 -7.10

Birla Mutual Fund 41075.24 41423.43 -348.19 -0.84

SBI Mutual Fund 30132.40 31794.97 -1662.57 -5.23

AUM BETWEEN 15,000 TO 30,000 Crs.Tata Mutual Fund 30132.40 24495.87 5636.53 23.01

Franklin Templeton Investments 24742.06 2 7990.87 -3248.81 -11.61

Kotak Mahindra Mutual Fund 21183.30 22170.02 -986.72 -4.45

DSP Merril l Lynch Mutual Fund 20540.42 21559.63 -1019.21 -4.73

LIC Mutual Fund 18633.47 18649.14 -15.68 -0.08

HSBC Mutual Fund 17357.31 18472.23 -1114.92 -6.04

AUM UPTO 15,000 CrsPRINCIPAL Mutual Fund 14199 .21 16705.4 3 -2506 .22 -15.00

Sundaram Mutual Fund 12846.7 2 14593 .85 -1747 .12 -11.97

JM Financial Mutual Fund 11655.1 5 12967 .81 -1312 .66 -10.12

IDFC Mutual Fund 11641.2 8 14272 .91 -2631 .63 -18.44

Deutsche Mutual Fund 11037.3 8 12405 .32 -1367 .94 -11.03

ING Mutual Fund 8496.11 9160.79 -664.69 -7.26

Fidelity Mutual Fund 8104.34 8879.73 -775.39 -8.73

Lotus India Mutual Fund 7406.06 78 83.30 -4 77.24 -6.05

ABN AMRO Mutual Fund 6791.00 6183 .70 607.31 9.82

Canara Robeco Mutual Fund 3932.75 4204.17 -271.42 -6.46

AIG Global Investment Group Mutual Fund 3808.87 4568.10 -759.22 -16.62

Morgan Stanley Mutual Fund 3110.83 3509.97 -399.1 4 -11.37

JPMorgan Mutual Fund 2654.70 2730.18 - 75.48 -2.76

Benchmark Mutual Fund 2641.81 2802.42 -160.6 1 -5.73

Mirae Asset Mutual Fund 2436.65 2160.37 276.28 12.79

DBS Chola Mutual Fund 1940.79 1852.89 87.90 4.74

Taurus Mutual Fund 298.96 335.51 -36.55 -10.89

Sahara Mutual Fund 176.01 198.14 -22.13 -11.17

Escorts Mutual Fund 162.47 170.65 -8.19 -4.80

Quantum Mutual Fund 66.62 66.33 0.29 0.44

BOB Mutual Fund 59.54 67.77 -8.23 -12.14

Average Total 571032.27 600559.03 -29526.76 -4.92


14/42

Insurance

BIRLA SUN LIFE INSURANCEPERFORMANCE OF VARIOUS FUNDS AS ON 30-June-08

Returns based on unit price growth, net of charges

Disclaimer:1. Past Performance is not necessarily a guide to the future 2. Te CAGR & annualised returns are calculated based on unit price growth over the period and are applicable to a single

premium investment held over that period 3. Instruments in which investments are made under each fund option are subject to market risk4. Since Multiplier Fund is only 2 months old, it’s early to judiciously appraise its performance


INDIVIDUAL Assure Fund Protector Builder Balancer Enhancer

Annualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR

Last 1 year 12.32 12.32 6.17 6.17 5.14 5.14 5.48 5.48 1.46 1.46

Last 2 years 10.1 9.65 7.74 7.47 8.74 8.4 9.34 8.95 8.57 8.24

Last 3 years - - 7.43 6.95 9.62 8.83 - - 11.37 10.3

Since Inception 8.35 7.79 9.68 7.61 13.78 10.02 7.8 7.27 19.87 13.09

Asset Held(Rs. In Millions) 836 2682 1863 178 26658

INDIVIDUAL Creator Magnifier Maximiser* Multiplier^

Annualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR

Last 1 year 4.26 4.26 -5.8 -5.8 -8.28 -8.28 - -

Last 2 years 12.73 12.03 11.53 10.95 - - - -

Last 3 years 17.93 15.46 21.95 18.41 - - - -

Since Inception 14.46 11.88 24.42 18.75 -5.47 -5.48 -48.62 -44.4

Asset Held(Rs In Millions) 1958 8572 8230 737

INDIVIDUAL Nourish Growth Enrich

Annualised CAGR Annualised CAGR Annualised CAGR

Last 1 year 5.99 5.99 5.4 5.4 3.28 3.28

Last 2 years 7.76 7.49 9.1 8.73 9.92 9.49

Last 3 years 7.68 7.17 10.43 9.52 13.82 12.28

Since Inception 7.44 6.47 10.61 8.79 15.44 11.95

Asset Held (Rs in Millions) 105 247 1235

* Inception Date of Maximiser Fund is 12th June 2007 ^ Inception Date of Multiplier Fund is 30th October 2007


15/42

PERFORM A NCE OF SELECT LIQUID FUNDS

Birla

Sun Life

Cash Plus - I P

KEY STATISTICS

SCHEME

DWS Insta

Cash Plus

Fund

HSBC Cash

Fund - I P

ICICI

Prudential

Liquid - I P

JMHigh

Liquidity - I P

Lotus India

Liquid Fund

- IP

PRINCIPAL

Cash Mgmt

Fund LO- Inst

Prem. Plan

Reliance

Liquidity

Fund

Tata Liquid

Fund - SHIP

UTI Liquid

Fund - Cash

Plan - IP

JULY 2008 Investime

23

PERFORM A NCE OF SELECT LIQUID PLUS FUNDS

ABN AMRO

Money PlusFund

KEY STATISTICS

SCHEME

Birla SunLife

Liquid Plus- IP

HDFC Cash

Mgmt Fund

- Savings Plus

- Wholesale

ING Liquid

Plus Fund- IP

Kotak FlexiDebt Fund

Lotus India

Liquid PlusFund - IP

Reliance

Liquid PlusFund - IP

Sundaram

BNP Paribas

Liquid Plus- IP

UTI Liquid

Plus Fund

Performance as on 30th June, 2008


AUM as on Jun e 08 (Rs Cror es) 6379.89 1018.44 2050.23 15941.45 645.87 1678.59 2245.01 10367.63 2602.30 10785.05

AUM as on May 08 (Rs Cro res) 8996.38 1401.29 1961.41 20444.23 690.15 1029.46 2119.92 13077.76 2457.36 12572.76

Month on Month Change (%) -29.08 -27.32 4.53 -22.02 -6.42 63.06 5.90 -20.72 5.90 -14.22

PERFORMANCE (ANNUALISED %)

1 Week 8.88 8.21 8.36 8.68 8.63 8.53 8.47 8.84 8.83 8.41

2 Weeks 8.75 8.13 8.20 8.51 8.47 8.47 8.48 8.74 8.69 8.40

1 Month 8.56 8.07 8.04 8.42 8.44 8.31 8.41 8.57 8.47 8.33

Latest Average Maturity in Days 95 102 129 NA 145 131 116 204 135 118

Previous Month 117 139 85 186 165 107 113 201 162 96

3 Month Avg Rolling Over 3 Months 8.37 8.08 8.04 7.97 8.12 8.12 8.28 8.23 8.22 8.36

Standard Deviation 0.0112 0.0107 0.01 0.0096 0.0035 0.009 0.0022 0.0082 0.0016 0.003

DWS

Liquid

Plus

Fund



Month on Month Change (%) -0.42 -1.07 -32.26 -12.46 -25.85 -35.43 -27.00 -12.04 -40.82 -19.85


1 Week 8.65 8.72 8.57 8.93 8.77 8.45 8.51 8.72 8.58 8.61

2 Weeks 8.65 8.72 8.51 8.74 8.66 8.49 8.57 8.68 8.45 8.54

1 Month 8.45 8.68 8.48 8.62 8.54 8.51 8.46 8.59 8.23 8.25

Latest Average Maturity in Days 99 204 77 200 152 120 288 223 175 171

Previous Month 66 175 131 190 90 128 195 215 109 87

3 Month Avg Rolling Over 3 Month 7.87 7.83 7.78 7.99 7.37 7.84 7.90 8.12 8.07 7.76



16/42

PERFORM A NCE OF SELECT SHORT TERM FLOATING RATE FUND S

Birla Sun Life

Floating RateFund - STP



Month on Month Change (%) 16.43 -36.17 -26.99 -14.33 -37.04 -24.48 -14.84 -2.78 -15.56 -22.78


1 Month 8.77 8.26 8.09 6.31 7.45 8.72 8.39 8.52 0.50 8.08

2 Months 8.68 8.16 8.22 6.23 7.46 8.55 8.30 8.45 3.19 8.17

3 Months 8.47 8.22 8.32 6.23 7.59 8.44 8.33 8.39 4.86 8.34

Latest Average Maturity in Days 73 308 168 111 44 22 82 212 456 186

Previous Month 142 236 149 80 146 55 98 223 427 179



KEY STATISTICS

SCHEME

HDFC

F R I F -STF

HSBC

FRF - STP

- Regular

Plan

IDFC

F R F - STP- Plan A

JM Floater

Fund - S T P

Kotak

Floater - ST

PRINCIPAL

Floating RateFund - SMP

Reliance

FRF

SBI Magnum

Income - FRP- ST

Templeton

FRIF - ShortTerm


PERFORM A NCE OF SELECT SHORT TERM FUNDS

Birla Sun Life

Short Term

Fund





1 Month 6.47 7.48 0.76 2.63 2.25 -4.78 -0.40 0.74 -0.82 -0.10

2 Months 7.46 7.95 4.38 4.73 5.32 2.67 3.40 4.58 3.80 3.68

3 Months 7.68 8.48 6.63 6.21 6.77 5.39 5.57 6.11 5.42 6.44


Averag e Maturi ty i n Days 299 591 577 544 288 401 399 646 383 438



KEY STATISTICS

SCHEME

DSP Merril l

Lynch Short

Term Fund

HDFC

Short Term

Plan

ICICI

Prudential

STP

Kotak Bond

Short Term

Plan

Lotus India

Short Term

Plan - IP

PRINCIPAL

Income Fund

- STP

Reliance

Short Term

Fund

Tata Short

Term Bond

Fund

Templeton

India STIP




17/42

* Daily Avg. of last Six Months

PERFORM A NCE OF SELECT GILT FUNDS

PERFORM A NCE OF SELECT INCOM E FUNDS

Birla Sun Life

GPRP



Month on Month Change (%) -7.77 -27.77 -11.75 -20.00 0.16 -0.93 -7.12 -23.96 -4.50 3.63


1 Month 2.82 -12.92 -11.56 -6.58 5.40 5.04 -0.43 0.32 -2.19 -10.84

3 Months 1.58 -3.73 -3.88 -0.18 0.32 4.04 2.84 3.11 2.89 -5.21

6 Months 4.51 0.83 -2.17 2.92 4.89 2.15 5.68 8.32 5.30 0.11

1 Year 10.35 5.55 5.93 6.85 9.75 4.83 6.34 9.99 5.86 4.31

Latest Average Maturity in Days 91 1099 NA 4 164 33 234 1 179 793

Previous Month 91 1851 672 1361 902 33 135 599 55 1202

182 Days Rolling Returns

Over last Six Months 13.04 8.42 9.41 10.58 12.30 5.91 7.54 13.87 7.00 7.07


KEY STATISTICS

SCHEME

DSP Merril l

Lynch G Sec

Fund Plan A

Long Duration

- (G)

ICICI

Prudential

GFIP

Kotak Gilt

- Investment

Regular Plan

PRINCIPAL

G Sec -

Investment

SBI Magnum

Gilt LTP - PF

- Regular

Tata

G S S M F

Templeton

India GSF

- LTP

Templeton

India GSF

- Treasury

Plan

UTI

G-Sec

Fund

BirlaSun Life

Income Plus





1 Month -4.36 -7.14 -8.80 -12.98 -14.37 -4.91 -2.55 -9.53 -1.77 -12.93

3 Months 1.88 -1.37 0.77 -2.98 0.75 0.48 0.42 -2.05 -1.70 -2.86

6 Months 4.73 3.12 4.81 -0.43 5.48 2.02 2.51 1.05 -0.78 -0.10

1 Year 10.83 11.71 8.29 8.21 9.01 8.10 6.87 7.94 6.79 5.82


Previous Month 708 1029 1058 1478 631 898 865 1321 584 1388

182 Days Rolling Returns

Over last Six Months 12.91 12.84 10.16 9.77 10.64 9.84 9.51 10.80 8.31 7.40


KEY STATISTICS

SCHEMEBirla SunLife

Income Fund

HSBCIncome Fund

- Invtt Plan

- Reg

ICICI

Prudential

Income

Fund

IDFC SSIF

- Invt. Plan -

Plan A

Kotak BondRegular

Plan

PRINCIPALIncome

Fund

RelianceIncome Fund -

Retail - G P

TempletonIndia Income

Fund

UTI Bond

Fund

JULY 2008 Investime

25




18/42

PERFORM A NCE OF SELECT M ONTHLY INCOM E PLANS

ABN

AMRO MIP

KEY STATISTICS

SCHEMEBirla Sun Life

MIP -

Wealth 25

DSP ML

Savings Plus

- Aggressive

Fund

FT India MIP

- Plan A

HSBC MIP -

Savings Plan

ICICI

Prudential MIP

- Cumulative

Templeton

MIP

UTI - MIS -

Advantag e

Fund

Reliance

MIP

HDFC MIP

- LTP


PERFORMA NCE OF SELECT D IVERSIFIED EQUITY SCHEM ES

ABN AMRO

Equity Fund

KEY STATISTICS

SCHEME

Birla SunLife

Equity Fund

DSP ML Top

100 EquityFund

DWS

Alp haEquity Fund

Fidelity

Equity Fund HDFC EquityFund

ICICI

Prudential

Growth Plan

- IP

Principal

Large CapFund

Reliance

Vision

SBI Magnum

Sector

Umbrella

- Contra



Month on Month Change (%) -21.84 -8.59 -5.77 -5.36 -5.99 -2.81 -6.82 -4.00 -13.74 8.68


1 Month -27.49 -68.37 -30.86 -50.89 -54.16 -43.61 -45.50 -27.61 -40.02 -49.16

3 Months -9.78 -20.78 1.72 -16.16 -15.92 -11.92 -11.53 -2.16 -11.91 -18.07

6 Months -16.73 -28.26 -8.37 -15.34 -19.26 -13.50 -13.34 -11.05 -12.21 -17.23

1 Year -3.54 -4.33 2.47 3.02 0.48 4.94 2.54 3.02 3.64 2.82

Latest Average Maturity in Days 1810 1204 394 620 880 1019 NA 464 595 1118

Top 10 Holdings (%) 10.53 16.39 9.04 11.13 12.13 8.01 6.95 14.19 9.06 7.71

No. of Scrips 15 18 13 27 35 20 35 4 26 24

Avg. Expos ure (Rs Crs) 7.62 4.85 7.99 17.15 34.94 7.55 9.22 60.1 3.64 4.91



AUM as on Jun e 08 (Rs Cror es) 124.82 994.25 839.60 129.47 N.A 3397.07 312.07 326.80 3052.04 2009.64


Month on Month Change (%) -16.83 -19.68 -6.73 -6.02 N.A -15.72 -13.32 -16.90 -18.55 -15.74

PERFORMANCE (ABSOLUTE %)

1 Month -16.60 -19.16 -14.98 -16.25 -15.97 -15.59 -14.90 -18.96 -18.78 -17.45

3 Months -17.71 -18.64 -12.87 -14.54 -15.61 -16.34 -14.48 -18.61 -19.70 -17.34

6 Months -42.25 -40.87 -31.38 -31.39 -34.61 -34.88 -31.18 -41.80 -39.72 -37.31

1 Year -15.65 -13.93 -1.99 3.47 -13.25 -13.33 -7.39 -12.28 -16.92 -7.85

Rolling Returns (%)

1 Year Rolling Returns 39.87 42.13 40.88 42.39 35.71 30.72 29.86 41.48 37.01 39.39

STATISTICAL MEASURES

Treynor -0.064 -0.0652 -0.0097 0.0172 -0.0713 -0.0776 -0.0308 -0.0493 -0.0864 -0.0394


PORTFOLIO DIVERSIFICATION

Top 5 Holdings (%) 26.44 22.16 29.1 27.22 NA 27.84 35.32 28.59 27.8 18.17

Top 10 Holdings (%) 42.6 35.63 45.02 45.93 NA 46.42 51.7 47.22 46.96 30.62

No. of Scrips 37 51 40 28 NA 43 32 37 24 69

Avg. Expos ure (Rs Crs) 3.37 19.5 20.99 4.62 NA 79 9.75 8.83 127.17 29.13


19/42

ABN AMRO

OpportunitiesFund

KEY STATISTICS

SCHEME

DSP Merril l

LynchOpportunities

Fund

DWS

InvestmentOpportunity

Fund

Franklin

India

Opportunity

Fund

HSBC India

Opportunities

Fund

ING Domestic

OpportunitiesFund

Kotak

OpportunitiesFund

Reliance

EquityOpportunities

Fund

Tata Equity

OpportunitiesFund

UTI

OpportunitiesFund

PERFORMA NCE OF SELECT EQUITY OPPORTUNITIES SCHEMES

JULY 2008 Investime

27

Birla Sun Life

Mid Cap

Fund

KEY STATISTICS

SCHEMEDSP ML India

Tiger Fund

HDFC

Capital

Builder Fund

HSBC

Midcap

Equity

Fund

ICICI

Prudential

Emerging

STAR Fund

JM Basic

Fund

Kotak Midcap

FundReliance

Growth

SBI Magnum

Global

Fund 94

SBI Magnum

Multiplier

Plus 93

PERFORM A NCE OF SELECT M IDCA P EQUITY SCHEM ES





1 Month -18.69 -19.86 -14.52 -17.94 -17.14 -22.16 -22.26 -14.68 -19.71 -15.98

3 Months -17.72 -21.70 -16.58 -16.48 -19.82 -24.36 -20.92 -11.84 -20.20 -18.01

6 Months -41.36 -43.42 -38.96 -44.16 -43.23 -47.48 -44.98 -35.03 -44.81 -41.09

1 Year -11.24 -12.57 -12.36 -19.92 -22.15 -16.31 -28.56 -1.86 -20.93 -12.56

Rolling Returns (%)



Treynor -0.0594 -0.0505 -0.0811 -0.131 -0.1326 -0.0936 -0.1652 -0.0101 -0.122 -0.0717



Top 5 Holdings (%) 19.55 20.47 25.27 18.63 22.33 32.2 17.16 16.95 16.58 27.2

Top 10 Holdings (%) 36.11 33.57 45.65 32.47 38.58 52.99 30.46 27.68 30.29 44.39

No. of Scrips 43 64 33 36 43 24 48 25 64 36






Month on Month Change (%) -20.43 -17.52 5.81 -19.64 -16.30 -16.38 -13.97 -17.71 -16.20 -11.75


1 Month -19.81 -16.88 -17.33 -19.74 -14.87 -18.15 -19.19 -16.97 -16.96 -14.65

3 Months -21.75 -17.65 -13.97 -16.11 -11.63 -19.73 -17.32 -16.83 -15.23 -14.56

6 Months -43.13 -39.42 -33.78 -38.83 -35.79 -40.05 -39.76 -41.11 -38.85 -35.13

1 Year -21.83 -12.09 11.01 -15.18 -10.30 -13.92 0.29 -20.36 -7.34 -1.65

Rolling Returns (%)



Treynor -0.1086 -0.0546 0.0485 -0.0675 -0.0555 -0.0727 0.0052 -0.1107 -0.0311 -0.0071



Top 5 Holdings (%) 27.74 17.94 21.22 37.72 28.65 24.1 18.78 22.98 15.6 20.71

Top 10 Holdings (%) 43.98 29.98 38.24 61.31 43.1 38.39 32.15 37.92 29.42 36.56

No. of Scrips 37 86 39 37 33 42 53 36 49 37



20/42

BALANCED FUNDS - PERFORMANCE

ABSOLUTE

RETURNS (%)

5 Years Treynor Standard

Deviation

COMPOUNDED ANNUALIZED

RETURNS (%)

STATISTICAL

MEASURE

3 Years1 Year 3 Months1 Month

Birla Sun Life 95 142.88 11-Feb-95 179.62 -14.99 -12.86 -10.13 17.88 26.77 -0.0602 1.282

DSP Merrill Lynch Balanced Fund 532.58 27-May-99 43.30 -11.56 -9.08 -0.86 23.39 28.80 -0.0107 1.459

FT India Balanced Fund 255.32 17-Jan-00 33.57 -13.68 -13.89 -7.13 18.65 25.72 -0.0439 1.3342

HDFC Balanced Fund 95.02 20-Sep-00 31.42 -10.36 -9.77 -2.75 14.92 21.49 -0.0251 1.28

HDFC Prudence Fund 2373.39 01-Feb-94 112.68 -12.24 -13.24 -9.60 20.30 29.03 -0.0593 1.3021

ICICI Prudential Balanced 289.69 03-Nov-99 32.53 -13.51 -14.87 -11.16 16.15 24.46 -0.0471 1.5468

JM Balanced 30.34 07-Apr-95 20.67 -15.28 -16.63 -17.26 15.44 19.11 -0.0818 1.6136

Kotak Balance 69.35 17-Dec-99 19.44 -12.89 -12.24 -2.22 20.02 28.14 -0.0164 1.4688

PRINCIPAL Balanced Fund 73.82 19-Jan-00 22.50 -13.43 -13.79 -3.78 15.13 24.44 -0.0229 1.3918

SBI Magnum Balanced Fund 363.04 31-Dec-95 35.52 -13.11 -14.08 -7.00 20.36 34.20 -0.0369 1.4532

Sundaram BNP Paribas Balanced Fund 37.00 23-Jun-00 33.24 -11.86 -13.31 -6.17 16.25 23.10 -0.0324 1.4264

Tata Balanced Fund 202.86 05-Jan-96 52.08 -13.84 -13.84 -6.77 19.42 28.74 -0.0312 1.5417

UTI Balanced Fund 868.13 03-Apr-95 52.90 -13.72 -14.50 -9.91 12.68 19.89 -0.0481 1.447

Scheme

Name

NAV (30-

June-08) Rs.

AUM ason 30th

Jun e, 2008(Rs Crs)

Inception

Date

Scheme

Name

NAV (30-June-

08) Rs.

AUM ason 30th

Jun e, 2008(Rs Crs)

Inception

Date

ABSOLUTE

RETURNS (%)

5 Years Treynor Standard

Deviation

COMPOUNDED ANNUALIZED

RETURNS (%)

STATISTICAL

MEASURE

3 Years1 Year 3 Months1 Month




ABN AMRO Tax Advantage Plan 119.01 16-Jan-06 10.93 -19.10 -20.87 -24.30 -- -- -0.1168 2.157

Birla Sun Life Equity Plan 116.94 03-Oct-06 10.09 -16.82 -17.30 -19.44 -- -- -0.1147 1.8154

Birla Sun Life Tax Relief 96 - Dividend 507.65 01-Apr-96 65.07 -22.66 -23.07 -17.72 21.33 31.19 -0.081 2.1198

DWS Tax Saving Fund 57.90 05-Feb-06 11.34 -18.31 -15.38 0.10 -- -- 0.0017 2.0174

Fidelity Tax Advantage Fund N.A 01-Mar-06 12.68 -15.76 -15.29 -11.36 -- -- -0.0604 1.7773

Franklin India Taxshield 460.39 13-Apr-99 125.31 -18.55 -16.95 -10.17 19.47 33.44 -0.0503 1.8792

HDFC Taxsaver 1159.08 13-Jun-96 126.45 -15.02 -18.77 -19.13 17.40 38.61 -0.1131 1.7332

ICICI Prudential Taxplan 719.24 19-Aug-99 83.62 -14.64 -11.31 -10.40 15.94 38.38 -0.0616 1.7339

ING Tax Saving Fund 44.37 29-Mar-04 21.68 -16.84 -14.51 -25.17 14.41 -- -0.1399 2.0067

Kotak Taxsaver 366.02 25-Nov-05 13.42 -20.66 -20.07 -18.43 -- -- -0.0872 2.0695

Principal Personal Taxsaver 370.65 12-Apr-96 74.53 -16.97 -14.60 -10.20 24.62 34.09 -0.0593 1.923

PRINCIPAL Tax Savings Fund 232.63 31-Mar-96 68.31 -18.93 -17.69 -16.45 25.48 37.27 -0.0977 1.8699

Reliance Tax Saver Fund 1619.93 22-Sep-05 12.18 -16.80 -15.06 -20.50 -- -- -0.1132 1.951

SBI Magnum Tax Gain Scheme 93 2886.13 31-Mar-93 42.36 -17.84 -19.33 -11.95 24.36 53.83 -0.0659 1.8104

Sundaram BNP Paribas Taxsaver -

(Open Ended Fund) 472.00 22-Nov-99 29.95 -13.43 -12.11 2.46 27.96 41.59 0.0123 1.9804

UTI Equity Tax Savings Plan 289.97 03-Jan-00 29.86 -15.77 -15.12 -7.34 15.21 29.62 -0.0366 1.901

ELSS FUNDS - PERFORMANCE


21/42

SNAPSHOT

MUTUALFUNDS


EQUITY FUNDS - HOLDING BY MKT CAP & CONCENTRATION

INDEX EXPOSURE (%)EQUITY FUNDS

Fund Size

(in Rs Crs.)

PORTFOLIO

DIVERSIFICATION (%)

BSE

Sensex

BSE

MID CAP

BSE

SMALL CAPTop 5

Holdings

Top 10

HoldingsScheme Name No. of Scrips

Avg. Expo sure

(in Rs Crs.)

LARGE CAP EQUITY FUNDS ABN AMRO Equi ty Fu nd 124.82 37 3.37 10.86 51.06 7.50 26.44 42.6

Birla Sun Life Advantage Fund 349.63 45 7.77 7.73 42.24 N.A 20.78 36.57

Birla Sun Life Equity Fund 994.25 51 19.5 15.05 46.33 4.72 22.16 35.63

Birla Sun Life Frontline Equity Fund 351.46 48 7.32 10.81 50.42 1.31 21.78 34.81

Birla Sun Life Top 100 Fund 302.73 41 7.38 12.38 62.10 N.A 27.95 44.12

DSP Merrill Lynch Equity Fund - Dividend 1090.63 77 14.16 24.28 40.04 6.19 17.2 28.92

DSP Merrill Lynch Top 100 Equity Fund 839.6 40 20.99 N.A 50.38 N.A 29.1 45.02

Fidelity Equity Fund 2897.49 70 41.39 17.54 52.89 1.72 22.44 34.89

Franklin India Bluechip 1890.98 35 54.03 N.A 68.88 N.A 36.84 54.91

Franklin India Prima Plus 1306.84 49 26.67 15.42 52.43 0.34 33.91 50.67

HDFC Equity Fund 3397.07 43 79 27.65 38.71 1.30 27.84 46.42

HDFC Growth Fund 863.53 38 22.72 12.89 45.79 3.73 28.97 47.26

HDFC Top 200 2026.83 54 37.53 11.84 55.71 N.A 24.89 40.86

HSBC Equity Fund 1096.43 31 35.37 10.81 44.39 N.A 24.2 38.14

Kotak 30 631.74 36 17.55 4.85 54.89 N.A 25.66 42.12

PRINCIPAL Growth Fund 214.33 42 5.1 23.51 43.15 7.29 23.73 39.03

Reliance Vision 3052.04 24 127.17 9.11 48.91 N.A 27.8 46.96SBI Magnum Sector Umbrella - Contra 2009.64 69 29.13 20.70 47.57 0.89 18.17 30.62

Sundaram BNP Paribas Select Focus 818 29 28.21 5.45 54.08 N.A 26.27 40.85

Tata Pure Equity Fund 292.66 39 7.5 13.64 37.81 1.99 17.99 33.01

MID CAP EQUITY FUNDS

ABN AMRO Opport un iti es Fun d 153.59 37 4.15 20.27 40.39 12.53 27.74 43.98

Birla Sun Life India Opportunities Fund 51.7 32 1.62 23.85 32.84 N.A 28.3 47.6

Birla Sun Life Mid Cap Fund 487.86 43 11.35 60.20 6.23 12.97 19.55 36.11

DSP Merrill Lynch India Tiger Fund 3254.66 64 50.85 18.86 39.60 2.21 20.47 33.57

DSP Merrill Lynch Opportunities Fund 1021.02 86 11.87 18.06 47.25 1.92 17.94 29.98

Franklin India Opportunity Fund 638.56 37 17.26 24.49 34.82 6.56 37.72 61.31

Franklin India Prima Fund 791.54 57 13.89 49.59 10.39 9.21 21.68 38.51

HDFC Capital Builder Fund 540.21 33 16.37 37.87 39.68 6.08 25.27 45.65

HSBC India Opportunities Fund 441.84 33 13.39 15.03 37.59 N.A 28.65 43.1

ICICI Prudential Emerging STAR Fund 516.53 43 12.01 56.28 N.A 20.38 22.33 38.58

ING Midcap Fund 23.25 43 0.54 28.93 15.05 3.79 18.27 33.15

JM Equity 59.61 22 2.71 36.33 39.31 N.A 40.71 69.49

Kotak Opportunities Fund 739.53 53 13.95 9.47 36.85 0.82 18.78 32.15

Reliance Growth 4511.13 25 180.45 20.66 10.26 2.99 16.95 27.68

SBI Magnum Global Fund 94 1138.02 64 17.78 56.19 2.53 7.92 16.58 30.29

SBI Magnum Multiplier Plus 93 788.22 36 21.9 22.83 18.35 3.47 27.2 44.39

SBI Magnum Sector Umbrella - Emerging Businesses 158.95 24 6.62 41.14 3.48 12.60 30.17 53.28

Sundaram BNP Paribas Select Midcap 1408 64 22 40.63 4.37 2.34 13.35 23.41

Tata Equity Opportunities Fund 435.63 49 8.89 31.33 21.44 12.56 15.6 29.42

THEMATIC/SECTOR FUNDS

Birla Sun Life Basic Industries 106.52 42 2.54 22.03 25.20 5.10 21.59 35.16

Birla Sun Life Buy India Fund 43.94 27 1.63 37.09 20.00 12.36 31.86 51.62

Birla Sun Life Dividend Yield Plus 215.68 51 4.23 33.47 9.97 10.02 18.61 31.44Birla Sun Life India GenNext Fund 95.2 27 3.53 32.67 30.10 8.70 31.17 52.83

Fidelity India Special Situations Fund 1600.93 73 21.93 28.17 31.53 3.07 33.35 47.76

HDFC Core & Satellite Fund 334.32 31 10.78 27.95 37.10 7.24 29.49 50.61

ICICI Prudential FMCG 58.55 11 5.32 37.16 17.34 6.33 58.04 95.94

ICICI Prudential Power 738.38 36 20.51 15.19 60.66 1.83 29.78 49.23

JM Basic Fund 858.26 24 35.76 56.10 1.48 11.80 32.2 52.99

Kotak Contra Fund 81 46 1.76 15.46 19.52 2.02 19.22 33.83

Kotak Global India 70.15 28 2.51 9.91 38.17 0.19 25.95 44.42

Kotak MNC Fund 25.95 29 0.89 25.97 17.14 10.42 25.86 44.37

PRINCIPAL Dividend Yield Fund 102.31 37 2.77 31.38 10.21 10.71 21.28 38.45

Reliance Diversified Power Fund 4577.05 26 176.04 6.16 25.73 2.29 22.92 36.61

SBI Magnum COMMA Fund 540.94 28 19.32 20.50 30.14 0.62 29.62 49.79

Tata Equity P/E Fund 124.01 44 2.82 34.61 20.00 6.04 25.54 41.68

Tata Infrastructure Fund 2154.14 60 35.9 16.37 29.33 4.14 21.84 32.37


22/42

SNAPSHOT

MUTUALFUNDS

EQUITY FUNDS - SECTOR ALLOCATION

Sector Allocation (%)Equity Funds

Scheme Name

Au to &

Aut o

ancil-

liaries

Bank-

ing &

Finance

Engi-

neering

& Ma-

chinery

IT Metals Textile OtherCement MediaHousing

& Con-

struction

Oil & Gas,

Petro-

leum &

Refinery

TelecomElect.

&

Eqp.

JULY 200 8 Investime 3

Pharma-

ceuticals

Power

Generation,

Transmis-

sion &

Equip

LARGE CAP EQUITY FUNDS

ABN AMRO Equ ity Fund 4.55 13.35 1.71 15.68 1.90 2.21 3.07 0.00 5.17 22.88 0.00 5.91 5.06 2.86 15.66

Birla Sun Life Advantage Fund 0.96 14.05 1.47 8.13 5.17 3.63 1.04 0.00 11.67 9.60 6.23 0.00 8.11 2.70 27.23

Birla Sun Life Equity Fund 0.50 12.79 0.00 9.02 5.60 3.51 3.26 3.60 5.53 8.55 2.99 3.78 8.98 3.17 28.72

Birla Sun Life Frontline Equity Fund 1.84 14.91 0.45 9.15 5.44 3.30 3.32 1.66 5.43 14.71 3.44 3.60 9.39 0.00 23.37

Birla Sun Life Top 100 Fund 6.07 11.53 0.00 8.89 5.36 0.99 1.54 2.85 3.97 18.15 6.90 4.22 8.02 0.00 21.51

DSP Merrill Lynch Equity Fund 1.68 4.91 1.62 11.64 1.93 7.93 6.44 0.39 3.70 11.38 9.72 2.01 7.24 1.43 27.98

DSP Merrill Lynch Top 100 Equity Fund 1.66 5.94 1.03 10.04 1.85 4.63 3.64 0.00 2.31 11.86 9.18 1.96 9.05 0.66 36.20

Fidelity Equity Fund 3.28 20.99 0.00 14.09 4.03 4.68 2.77 1.33 2.43 13.79 0.00 0.00 0.00 3.39 29.22

Franklin India Bluechip 4.79 20.78 2.93 12.46 8.19 7.52 0.74 0.00 4.38 11.60 2.22 0.00 9.62 1.85 12.92

Franklin India Prima Plus 3.94 17.77 2.11 13.51 4.19 4.79 8.69 0.00 3.68 8.58 1.53 0.00 9.66 1.23 20.32

HDFC Equity Fund 7.72 17.96 0.00 3.91 6.51 5.70 6.94 5.49 2.31 4.68 19.02 0.42 0.00 1.06 18.27

HDFC Growth Fund 2.63 21.36 0.00 1.59 7.67 1.59 5.39 5.23 1.32 11.48 13.45 2.25 5.73 0.81 19.50

HDFC Top 200 6.15 19.40 0.00 10.09 7.24 4.36 1.85 3.23 2.60 8.29 12.63 0.64 3.27 0.00 20.26HSBC Equity Fund 0.00 15.51 0.00 7.54 2.30 3.27 0.00 2.71 5.87 15.10 3.45 2.23 8.94 0.00 33.08

Kotak 30 0.00 21.85 1.17 10.33 4.00 3.80 0.00 4.32 8.03 14.35 4.49 4.03 5.89 2.57 15.16

PRINCIPAL Growth Fund 5.10 13.45 2.98 10.26 6.08 4.16 2.37 7.05 9.19 14.68 3.19 1.91 5.46 2.00 12.12

Reliance Vision 7.08 9.80 3.99 9.07 1.85 3.58 1.66 1.28 6.79 6.98 7.67 4.64 4.42 0.00 31.20

SBI Magnum Sector Umbrella - Contra 7.65 15.57 3.87 6.84 5.49 5.50 1.32 6.26 10.03 15.63 4.46 0.00 2.70 0.00 14.68

Sundaram BNP Paribas Select Focus 0.00 9.56 0.00 14.18 0.00 1.55 0.64 0.00 6.93 14.47 6.44 2.62 6.36 0.00 37.26

Tata Pure Equity Fund 0.00 8.47 0.00 6.10 3.65 6.57 1.83 3.66 9.37 5.21 4.78 2.48 5.27 3.22 39.40

MIDCAP EQUITY FUNDS

ABN AMRO Opportunit ies Fun d 5.88 19.30 2.76 25.05 1.96 1.17 0.00 7.93 2.37 15.19 2.03 0.00 4.43 0.00 11.92

Birla Sun Life India Opportunities Fund 4.05 0.00 0.00 34.27 8.17 6.97 0.00 0.83 5.41 9.87 0.00 0.00 4.43 5.18 20.81

Birla Sun Life Mid Cap Fund 3.35 5.58 2.32 9.97 5.31 1.53 3.00 7.90 9.24 0.00 2.92 5.37 0.00 4.76 38.75

DSP Merrill Lynch India Tiger Fund 0.00 17.80 1.79 0.00 7.54 7.18 0.94 7.06 10.11 16.02 1.47 6.20 7.57 0.43 15.88

DSP Merrill Lynch Opportuni ties Fund 1.53 11.38 1.79 9.51 5.64 2.98 3.30 3.39 7.29 12.84 6.26 0.58 5.27 2.98 25.26

Franklin India Opportunity Fund 6.56 10.56 0.92 1.01 3.86 1.42 3.35 4.10 12.79 15.36 3.96 7.63 18.11 0.00 10.38

Franklin India Prima Fund 5.56 14.82 0.00 7.65 4.98 13.13 0.00 2.83 8.73 4.81 7.59 3.73 1.40 0.00 24.79HDFC Capital Builder Fund 9.05 20.77 0.00 9.39 10.44 6.59 0.00 0.00 1.85 6.69 12.76 1.20 2.67 0.65 17.94

HSBC India Opportunities Fund 3.91 11.80 0.00 12.92 4.08 2.23 1.20 3.65 2.41 15.54 7.43 2.15 7.74 1.94 22.99

ICICI Prudential Emerging STAR Fund 3.36 10.59 0.95 9.30 2.66 7.75 1.96 7.37 9.04 0.00 4.57 2.04 3.51 8.53 28.38

ING Midcap Fund 7.31 13.99 0.00 21.26 1.99 6.12 0.00 9.57 5.78 4.04 9.27 0.00 0.00 4.72 15.94

JM Equity 0.00 5.62 6.10 20.75 5.78 0.00 0.00 10.78 0.00 0.03 0.00 6.03 9.58 10.67 24.66

Kotak Opportunities Fund 1.50 19.70 0.83 11.54 1.80 4.79 1.60 6.98 9.17 12.88 5.13 1.74 5.12 4.05 13.19

Reliance Growth 2.32 1.61 0.00 1.01 1.17 1.68 1.43 1.93 8.75 5.21 7.14 0.00 3.59 0.00 64.16

SBI Magnum Global Fund 94 2.55 9.07 5.12 7.93 5.30 8.10 0.69 13.77 11.93 5.60 7.64 0.25 0.00 1.17 20.89

SBI Magnum Multiplier Plus 93 7.80 23.73 0.66 2.29 10.86 6.50 0.28 10.67 5.65 1.08 6.14 0.74 0.00 0.99 22.62

SBI Magnum Sector Umbrella - Emerging Businesses 0.00 4.10 1.76 0.00 8.55 6.03 0.00 19.65 0.00 0.00 3.46 10.84 0.00 13.05 32.57

Sundaram BNP Paribas Select Midcap 5.37 10.61 2.87 1.23 3.31 2.55 2.62 5.74 6.61 4.04 5.00 0.00 0.00 3.00 47.04

Tata Equity Opportunities Fund 1.24 4.10 3.29 12.36 5.71 4.52 2.59 2.53 11.12 5.98 11.51 2.49 2.81 1.90 27.83

THEMATIC/SECTOR FUNDS

Birla Sun Life Basic Industries 1.22 13.02 0.65 0.00 5.31 3.20 0.00 4.60 11.42 19.33 0.00 4.23 0.00 0.00 37.02

Birla Sun Life Buy India Fund 5.62 12.10 0.00 0.00 0.00 0.00 9.99 0.00 0.00 3.51 16.30 0.00 3.96 0.00 48.52

Birla Sun Life Dividend Yield Plus 2.39 10.27 0.00 2.69 0.60 1.74 1.13 0.00 1.76 17.20 11.09 2.33 0.00 0.00 48.79

Birla Sun Li fe India GenNext Fund 4.61 18.86 0.00 3.26 0.00 0.00 5.63 0.00 0.00 0.00 8.40 0.00 2.79 7.03 49.41

Fidelity India Special Situations Fund 2.27 38.71 1.21 18.40 1.74 5.20 1.86 0.80 0.00 2.61 12.57 0.77 2.47 1.66 9.74

HDFC Core & Satellite Fund 6.27 22.51 0.00 0.00 9.07 10.43 8.15 1.91 1.40 5.10 10.42 0.00 3.06 0.00 21.67

ICICI Prudential FMCG 0.00 3.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32.59 64.00

ICICI Prudential Power 1.69 15.85 2.35 11.24 4.82 7.39 0.01 6.84 12.17 10.73 6.00 3.29 6.20 3.82 7.59

JM Basic Fund 0.00 6.54 0.00 0.00 11.72 11.32 0.00 21.63 9.59 0.02 0.00 1.25 0.00 0.00 37.92

Kotak Contra Fund 0.00 14.33 0.00 8.81 0.96 3.10 0.00 0.00 5.17 7.36 4.36 5.38 6.99 2.35 41.19

Kotak Global India 0.19 3.86 0.00 10.79 8.37 2.40 3.56 8.24 7.76 16.56 4.42 4.07 4.23 3.36 22.19

Kotak MNC Fund 8.45 5.78 0.00 4.24 6.69 5.69 2.93 0.00 7.68 0.00 2.27 1.32 4.17 0.00 50.78

PRINCIPAL Dividend Yield Fund 0.00 7.47 8.93 0.00 0.00 3.82 3.21 1.65 8.83 12.31 4.20 0.00 0.00 0.00 49.58

Reliance Diversified Power Fund 0.00 1.92 0.00 0.00 11.64 5.30 0.00 5.38 5.77 10.16 0.00 18.23 0.00 0.00 41.60

SBI Magnum COMMA Fund 2.42 8.92 4.87 0.00 0.00 0.00 0.00 3.21 35.67 19.57 0.00 0.00 0.00 0.00 25.35

Tata Equity P/E Fund 4.70 16.23 1.15 5.70 0.90 3.27 12.46 0.00 28.36 2.24 0.00 0.00 0.00 0.00 24.98Tata Infrastructure Fund 0.00 9.48 2.35 0.00 6.26 8.15 0.00 5.53 13.45 11.76 0.00 7.06 3.99 0.00 31.97


23/42

SNAPSHOT

MUTUALFUNDS

EQUITY FUNDS - PERFORMANCE

Compounded Ann ualized

Returns (%)Statistical Measur

Inception

Date1 Month 1 Year 5 Years Treynor

Abs olu te

Returns (%)

Scheme NameNAV

(30-June-08) 3 Months 3 YearsStandar

Deviatio

Equity Funds

6 Months

LARGE CAP EQUITY FUNDS

ABN AMRO Equi ty Fund 25.93 27-Sep-04 -16.60 -17.71 -42.25 -15.65 22.87 -- -0.064 2.205

Birla Sun Life Advantage Fund 109.22 24-Feb-95 -19.24 -18.73 -43.28 -19.01 17.21 29.75 -0.0796 2.2018

Birla Sun Life Equity Fund 178.57 15-Sep-98 -19.16 -18.64 -40.87 -13.93 24.39 41.64 -0.0652 2.0384

Birla Sun Life Frontline Equity Fund 52.88 27-Sep-02 -16.62 -16.59 -34.20 -6.54 27.51 33.96 -0.0314 1.9144

Birla Sun Life Top 100 Fund 14.70 27-Oct-05 -16.11 -15.02 -36.12 -13.86 -- -- -0.0671 1.9196

DSP Merrill Lynch Equity Fund - Dividend 38.17 29-Apr-97 -15.33 -12.45 -33.96 -4.09 31.49 43.06 -0.018 1.9739

DSP Merrill Lynch Top 100 Equity Fund 63.86 11-Mar-03 -14.98 -12.87 -31.38 -1.99 30.47 39.08 -0.0097 1.9029

Fidelity Equity Fund 20.92 18-May-05 -15.97 -15.61 -34.61 -13.25 24.09 -- -0.0713 1.769

Franklin India Bluechip 125.25 01-Dec-93 -18.08 -18.10 -34.80 -12.00 23.04 34.47 -0.0604 1.8586

Franklin India Prima Plus 137.12 13-Dec-94 -17.97 -16.60 -34.58 -12.05 25.66 36.32 -0.0665 1.7821

HDFC Equity Fund 143.17 31-Dec-94 -15.59 -16.34 -34.88 -13.33 24.71 36.72 -0.0776 1.7637

HDFC Growth Fund 53.47 20-Sep-00 -14.87 -15.98 -32.88 -2.22 27.97 37.58 -0.0196 1.7031

HDFC Top 200 115.42 04-Sep-96 -16.16 -15.13 -31.25 -4.06 26.23 37.60 -0.0248 1.7826

HSBC Equity Fund 79.99 10-Dec-02 -14.57 -12.02 -29.45 4.39 29.63 43.13 0.0181 1.7936

Kotak 30 74.18 22-Dec-98 -16.45 -16.42 -34.19 -1.26 30.12 39.23 -0.0036 1.9857

PRINCIPAL Growth Fund 44.19 25-Oct-00 -18.48 -17.88 -41.38 -17.08 16.56 30.86 -0.0927 1.8713

Reliance Vision 172.06 08-Oct-95 -18.78 -19.70 -39.72 -16.92 23.41 37.43 -0.0864 1.9322

SBI Magnum Sector Umbrella - Contra 38.66 14-Jul-99 -17.45 -17.34 -37.31 -7.85 29.81 56.99 -0.0394 1.9621

Sundaram BNP Paribas Select Focus 68.98 31-Jul-02 -12.94 -12.12 -36.20 7.36 33.64 39.79 0.0367 2.2949

Tata Pure Equity Fund 64.72 15-May-98 -16.51 -14.26 -34.12 -5.74 25.31 39.28 -0.0271 1.9555

MID CAP EQUITY FUNDS

ABN AMRO Oppor tun it ies Fund 19.20 29-Apr-05 -19.81 -21.75 -43.13 -21.83 23.01 -- -0.1086 2.0626

Birla Sun Life India Opportunities Fund 39.80 27-Dec-99 -17.94 -14.99 -36.25 -26.13 11.11 24.22 -0.1568 1.8312

Birla Sun Life Mid Cap Fund 66.02 16-Oct-02 -18.69 -17.72 -41.36 -11.24 24.98 38.74 -0.0594 2.0016

DSP Merrill Lynch India Tiger Fund 33.40 14-Jun-04 -19.86 -21.70 -43.42 -12.57 31.79 -- -0.0505 2.1551

DSP Merrill Lynch Opportunities Fund 53.62 16-May-00 -16.88 -17.65 -39.42 -12.09 24.60 37.65 -0.0546 1.9933

Franklin India Opportunity Fund 24.26 29-Mar-00 -19.74 -16.11 -38.83 -15.18 24.18 37.99 -0.0675 2.1607Franklin India Prima Fund 168.61 15-Dec-93 -19.17 -19.35 -45.29 -25.53 11.11 32.55 -0.171 1.8281

HDFC Capital Builder Fund 64.17 1-Feb-94 -14.52 -16.58 -38.96 -12.36 19.62 37.32 -0.0811 1.6914

HSBC India Opportunities Fund 27.95 5-Mar-04 -14.87 -11.63 -35.79 -10.30 27.24 -- -0.0555 1.865

ICICI Prudential Emerging STAR Fund 25.33 1-Nov-04 -17.14 -19.82 -43.23 -22.15 23.29 -- -0.1326 1.9325

ING Midcap Fund 15.71 6-Jun-05 -17.05 -15.54 -41.23 -18.68 16.27 -- -0.0952 2.0535

JM Equity 32.55 7-Apr-95 -20.72 -19.90 -42.33 -19.50 15.83 30.28 -0.0977 2.0608

Kotak Opportunities Fund 32.30 10-Sep-04 -19.19 -17.32 -39.76 0.29 30.03 -- 0.0052 2.1163

Reliance Growth 301.71 8-Oct-95 -14.68 -11.84 -35.03 -1.86 30.83 50.79 -0.0101 1.897

SBI Magnum Global Fund 94 36.75 30-Sep-94 -19.71 -20.20 -44.81 -20.93 24.42 48.52 -0.122 1.9388

SBI Magnum Multiplier Plus 93 52.17 28-Feb-93 -15.98 -18.01 -41.09 -12.56 29.31 44.62 -0.0717 1.8557

SBI Magnum Sector Umbrella - Emerging Businesses 25.61 11-Oct-04 -22.51 -23.71 -48.04 -23.82 14.58 -- -0.143 1.9655

Sundaram BNP Paribas Select Midcap 87.31 31-Jul-02 -16.39 -14.76 -41.27 -12.17 28.54 45.87 -0.0599 2.0392

Tata Equity Opportunities Fund 61.74 16-Apr-99 -16.96 -15.23 -38.85 -7.34 26.28 41.22 -0.0311 2.0499

THEMATIC/SECTOR FUNDS Birla Sun Life Basic Industries 68.46 18-Feb-00 -17.89 -20.99 -44.06 -10.64 22.59 33.78 -0.0488 2.0612

Birla Sun Life Buy India Fund 24.51 18-Feb-00 -17.59 -12.28 -33.85 -16.07 13.97 34.84 -0.1003 1.7727

Birla Sun Life Dividend Yield Plus 40.48 27-Feb-03 -15.95 -13.23 -36.93 -14.04 10.94 26.77 -0.082 1.8481

Birla Sun Life India GenNext Fund 14.99 12-Aug-05 -16.54 -15.26 -36.38 -14.90 -- -- -0.092 1.7302

Fidelity India Special Situations Fund 11.78 24-May-06 -16.38 -13.60 -36.01 -16.89 -- -- -0.0919 1.8354

HDFC Core & Satellite Fund 21.81 29-Sep-04 -17.26 -21.70 -40.65 -19.18 17.69 -- -0.1101 1.7889

ICICI Prudential FMCG 41.01 31-Mar-99 -14.31 -11.41 -28.15 -3.37 24.03 35.24 -0.0334 1.5229

ICICI Prudential Power 72.98 04-Oct-94 -18.65 -19.61 -39.17 -18.57 22.57 34.12 -0.0886 1.9494

JM Basic Fund 20.40 02-Jun-97 -22.16 -24.36 -47.48 -16.31 24.36 24.08 -0.0936 1.9733

Kotak Contra Fund 13.74 29-Jul-05 -17.50 -14.50 -37.73 -12.91 -- -- -0.0756 1.8032

Kotak Global India 23.90 03-Feb-04 -16.51 -13.60 -33.97 -18.74 17.31 -- -0.1105 1.7654

Kotak MNC Fund 23.35 02-May-00 -14.36 -13.77 -33.78 -25.45 9.46 27.49 -0.2034 1.5138

PRINCIPAL Dividend Yield Fund 15.91 18-Oct-04 -15.19 -8.72 -35.59 -6.10 10.34 -- -0.0359 1.7625

Reliance Diversified Power Fund 52.51 10-May-04 -16.31 -18.71 -35.15 19.65 49.86 -- 0.0847 1.9177

SBI Magnum COMMA Fund 18.37 24-Aug-05 -15.62 -13.35 -37.98 4.06 -- -- 0.0228 2.2201

Tata Equity P/E Fund 29.90 30-Jun-04 -16.42 -11.62 -34.27 -1.62 26.51 -- -0.0077 1.9896

T t I f t t F d 26 83 20 J 05 16 88 18 20 38 79 1 18 33 79 0 0055 2 0442


24/42

SNAPSHOT

MUTUALFUNDS

Scheme Name

DEBT FUNDS - PERFORMANCE

NAV

(30-June-08) 2 Weeks 1 Month 3 Months 6 Months 1 Year SharpeStanda

Deviati

Compounded Annualized (%)

Statistical MeasureSimple Annualized Returns (%)

INCOME FUNDS

Birla Sun Life Income Fund - Growth 29.57 -13.73 -4.36 1.88 4.73 10.83 0.14 0.18Birla Sun Life Income Plus - Growth 34.58 -12.9 -7.14 -1.37 3.12 11.71 0.15 0.19DSP Merrill Lynch Bond Fund - Retail Plan - Growth 26.11 -11.02 -7.75 -2.32 0.4 3.63 -0.02 0.12HDFC Income Fund - Growth 17.91 -21.03 -14.15 -3.75 -0.3 6.76 0.05 0.18HSBC Income Fund - Invt t Plan - Reg - Growth 13.63 -17.05 -8.8 0.77 4.81 8.29 0.14 0.11ICICI Prudential Income Fund - I P - Growth 24.23 -22.45 -12.43 -2.44 0.12 8.85 0.08 0.21ING Income Fund - Regular Plan - Growth 20.53 7.46 6.02 7.41 9.96 11.3 0.17 0.16PRINCIPAL Income Fund - I P - Growth 13.5 -5.55 -2.15 0.81 2.91 7.29 0.08 0.15Reliance Income Fund - Retail - G P - Growth 25.39 -16.38 -9.53 -2.05 1.05 7.94 0.07 0.19SBI Magnum Income - Growth 20.48 -32.48 -15.7 -5.56 -4.06 2.93 -0.01 0.36Sundaram BNP Paribas Income Plus- Growth 13.94 6.02 5.61 5.29 5.38 6.57 0.51 0.02Tata Dynamic Bond Fund - Option A - Growth 13.39 8.42 8.42 9.47 8.81 8.32 0.73 0.02Templeton India IBA - Plan A - Growth 26.59 -8.64 -2.87 -1.66 -0.68 6.21 0.03 0.23Templeton India Income Fund - Growth 27.88 -6.15 -1.77 -1.7 -0.78 6.79 0.04 0.24UTI Bond Fund - Growth 23.27 -23.1 -12.93 -2.86 -0.1 5.82 0.05 0.12

MONTHLY INCOME PLANS ABN AMRO MIP - Growth 12.91 -44.32 -27.49 -9.78 -16.73 -3.54 -0.1 0.31

Birla Sun Life MIP - Growth 20 -73.03 -45.54 -16.51 -18.66 0.77 -0.04 0.34

Birla Sun Life MIP - Savings 5 - Growth 13.09 4.73 7.17 8.93 9.23 9.74 0.1 0.22

Birla Sun Life Monthly Income Plan - Growth 27.05 -63.96 -39.08 -9.51 -14.72 2.56 -0.02 0.3

DSP Merrill Lynch Savings Plus - Aggressive Fund - Growth 14.9 -27.52 -30.86 1.72 -8.37 2.47 -0.02 0.42

DSP Merrill Lynch Savings Plus - Moderate Fund - Growth 16.23 -25.63 -22.45 1.56 -4.55 3.05 -0.02 0.28

DWS MIP Fund - Plan A - Growth 13.65 -68.24 -47.8 -12.8 -9.64 6.35 0.03 0.35

FT India MIP - Plan A - Growth 22.11 -82.03 -50.89 -16.16 -15.34 3.02 -0.01 0.41

HDFC MIP - STP - Growth 13.37 -44.53 -23.6 -6.42 -10.09 1.64 -0.04 0.29

HSBC MIP - Regula

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Gold - Investime July 08