COMPARATIVE ANALYSIS

OF
HDFC & LIC MUTUAL
FUNDS WITH UTI
MUTUAL FUND
INTRODUCTON OF MUTUAL FUND CONCEPT

Mutual funds have been around for a long time, dating back to the early 19th
century. The first modern American mutual fund opened in 1924, yet it was only in the
1990’s that mutual funds became mainstream investments, as the number of households
owning them nearly tripled during that decade. With recent surveys showing that over
88% of all investors participate in mutual funds, and they are probably already familiar
with these investments. In any case, it's important to studying that how exactly these
investments work and how he can use them to his /her advantage.
 A mutual fund is a special type of company that pools together money from many
investors and invests it on behalf of the group, in accordance with a stated set of
objectives. Mutual funds raise the money by selling shares of the fund to the public; much
like any other company can sell stock in itself to the public. Funds then take the money
they receive from the sale of their shares (along with any money made from previous
investments) and use it to purchase various investment vehicles, such as stocks, bonds
and money market instruments. In return for the money they give to the fund when
purchasing shares, shareholders receive an equity position in the fund and, in effect, in
each of its underlying securities. For most mutual funds, shareholders are free to sell their
shares at any time, although the price of a share in a mutual fund will fluctuate daily,
depending upon the performance of the securities held by the fund.

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them.
 Mutual Fund Operation Flow Chart

Thus a Mutual Fund is the most suitable investment for the common man as it offers
an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.
History of Indian Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India.
The history of mutual funds in India can be broadly divided into four distinct phases:

First Phase – 1964-87

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

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Can Bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up
its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)

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

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under
management was way ahead of other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.
 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC.
It is registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September 2004, there were 29 funds, which
manage assets of Rs.1, 53,108 crores under 421 schemes.

Growth in Assets under Management

The graph indicates the growth of assets over the years.

Organisation of a Mutual Fund

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

SEBI Regulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the
sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme.
Frequently used terms and their Meanings

Net Asset Value (NAV)

Market value of the assets of the scheme minus its liabilities. The NAV per unit is the net
asset value of the scheme divided by the number of units outstanding on the Valuation
Date.

Sale Price
Price one pays when invests in a scheme. This is also called Offer Price. It may include a
sales load.

Repurchase Price
Price at which a close-ended scheme repurchases its units and it may include a back-end
load. This is also called Bid Price.

Redemption Price
Price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity.Such prices are NAV related.

Sales Load
Charge collected by a scheme when it sells the units this is also called, ‘Front-end’ load.
Schemes that do not charge a load are called ‘No Load’ schemes.

Repurchase or ‘Back-end’ Load

Charge collected by a scheme when it buys back the units from the unit holders.
Rules and Regulations

Mutual Funds in India are governed by the SEBI (Mutual Fund) Regulations 1996 as
amended from time to time.

Also, SEBI keeps on issuing various guidelines and circulars on varied topics relating to
mutual fund industry.

Latest issuances related to MF’s Circulars

 30 June, 2006 Undertaking from trustees for new scheme offer document

 16 June, 2006 Gazette notification no. S.O. 783(E) dated May 22, 2006 pertaining
to SEBI Mutual Funds) (Second Amendment) Regulations 2006

 21 April, 2006 Dividend Distribution Procedures for Mutual Funds

 Introduction of Gold Exchange Traded Funds in India

 04 April, 2006 Rationalization of Initial Issue Expenses and Dividend distribution

procedure for Mutual Funds
AMENDMENTS

22 May, 2006 Securities and Exchange Board Of India (Mutual Funds) (Second
Amendment) Regulations, 2006

In addition, mutual funds of India have formed their association i.e. Association of
Mutual Funds of India (AMFI) which acts as a self regulatory body for its members.

ASSOCIATION OF MUTUAL FUNDS OF INDIA (AMFI)

AMFI, the apex body of all the registered Asset Management Companies was
incorporated on August 22, 1995 as a non-profit organization. As of now, all the 30 Asset
Management companies that have launched mutual fund schemes are its members.

OBJECTIVES

 To define and maintain high professional and ethical standards in all areas of
operation of mutual fund industry
 To recommend and promote best business practices and code of conduct to be
followed by members and others engaged in the activities of mutual fund and
asset management including agencies connected or involved in the field of capital
markets and financial services.
 To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on all
matters relating to the Mutual Fund Industry.
  To develop a cadre of well-trained Agent distributors and to implement a
programme of training and certification for all intermediaries and other engaged
in the industry.
 To undertake nation wide investor awareness programme so as to promote proper
understanding of the concept and working of mutual funds.
 To disseminate information on Mutual Fund Industry and to undertake studies and
research directly and/or in association with other bodies.

AMFI Code of Ethics

One of the objects of the Association of Mutual Funds in India (AMFI) is to

promote the investors’ interest by defining and maintaining high ethical and professional
Standards in the mutual fund industry. In pursuance of this objective, AMFI had
constituted a Committee under the Chairmanship of Shri A. P. Pradhan with Shri S. V.
Joshi, Shri C. G. Parekh and Shri M. Laxman Kumar as members. This Committee,
working in close co-operation with Price Waterhouse coopers.

FIRE Project of USAID, has drafted the Code, which has been approved and
recommended by the Board of AMFI for implementation by its members.

The AMFI Code of Ethics, “The ACE” for short, sets out the standards of good practices
to be followed by the Asset Management Companies in their operations and in their
dealings with investors, intermediaries and the public.

SEBI (Mutual Funds) Regulation 1996 requires all Asset Management Companies
and Trustees to abide by the code of conduct as specified in the Fifth Schedule to the
Regulation. The AMFI code has been drawn up to supplement that schedule, to
encourage standards higher than those prescribed by the Regulations for the benefit of
investors in the mutual fund industry.
Integrity:

Members and their key personnel, in the conduct of their business shall observe
high standards of integrity and fairness in all dealings with investors, issuers, market
intermediaries, other members and regulatory and other government authorities.

Mutual Fund Schemes shall be organized, operated, managed and their portfolios of
securities selected, in the interest of all classes of unit holders and not in the interest of
sponsors.

 Directors of Members
 Members of Board of Trustees or Directors of the Trustee Company
 Brokers and other market intermediaries
 Associates of the Members
 A special class selected from out of unit holders

Due Diligence:

Members in the conduct of their Asset Management business shall at all times

 Render high standards of service.

 Exercise due diligence.
 Exercise independent professional judgment.

Members shall have and employ effectively adequate resources and procedures, which
are needed for the conduct of Asset Management activities.
Disclosures:

Members shall ensure timely dissemination to all unit holders of adequate,

accurate, and explicit information presented in a simple language about the investment
objectives, investment policies, financial position and general affairs of the scheme.

Members shall disclose to unit holders investment pattern, portfolio details, ratios
of expenses to net assets and total income and portfolio turnover wherever applicable in
respect of schemes on annual basis.

Members shall in respect of transactions of purchase and sale of securities entered

into with any of their associates or any significant unit holder.

 Submit to the Board of Trustees details of such transactions, justifying its fairness to
the scheme.
 Disclose to the unit holders details of the transaction in brief through annual and half
yearly reports.

All transactions of purchase and sale of securities by key personnel who are directly
involved in investment operations shall be disclosed to the compliance officer of the
member at least on half yearly basis and subsequently reported to the Board of Trustees if
found having conflict of interest with the transactions of the fund.
Professional Selling Practices:

Members shall not use any unethical means to sell market or induce any investor
to buy their products and schemes. Members shall not make any exaggerated statement
regarding performance of any product or scheme.

Members shall endeavor to ensure that at all times investors are provided with true
and adequate information without any misleading or exaggerated claims to investors
about their capability to render certain services or their achievements in regard to services
rendered to other clients,

 Investors are made aware of attendant risks in members’ schemes before any
investment decision is made by the investors,

 Copies of prospectus, memoranda and related literature is made available to

investors on request,

 Adequate steps are taken for fair allotment of mutual fund units and refund of
application moneys without delay and within the prescribed time limits.

 Complaints from investors are fairly and expeditiously dealt with.

Members in All Their Communications to Investors and Selling
Agents Shall

 Not present a mutual fund scheme as if it were a new share issue not create
unrealistic expectations

 Not guarantee returns except as stated in the offer document of the scheme
approved by sebi, and in such case, the members shall ensure that adequate
resources will be made available and maintained to meet the guaranteed returns.

 Convey in clear terms the market risk and the investment risks of any scheme
being offered by the members.

 Not induce investors by offering benefits which are extraneous to the scheme.

 Not misrepresent either by stating information in a manner calculated to mislead

or by omitting to state information this is material to making an informed
investment decision.

Investment Practices:
Members shall manage all the schemes in accordance with the fundamental
investment objectives and investment policies stated in the offer documents and take
investment decisions solely in the interest of the unit holders.

Members shall not knowingly buy or sell securities for any of their schemes from or to:

 any director, officer, or employee of the member

  any trustee or any director, officer, or employee of the Trustee Company

Operations:

Members shall avoid conflicts of interest in managing the affairs of the schemes
and shall keep the interest of all unit holders paramount in all matters relating to the
scheme.

Members or any of their directors, officers or employees shall not indulge in front
running (buying or selling of any securities ahead of transaction of the fund, with access
to information regarding the transaction which is not public and which is material to
making an investment decision, so as to derive unfair advantage).

Members or any of their directors, officers or employees shall not indulge in self-
dealing (Using their position to engage in transactions with the fund by which they
benefit unfairly at the expense of the fund and the unit holders).

Members shall not engage in any act, practice or course of business in connection
with the purchase or sale, directly or indirectly, of any security held or to be acquired by
any scheme managed by the Members, and in purchase, sale and redemption of units of
Schemes managed by the Members, which is fraudulent, deceptive or manipulative.

Members shall not, in respect of any securities, be party to-

 creating a false market,

 price rigging or manipulation
 passing of price sensitive information to brokers, Members of stock exchanges and
 Other players in the capital markets or take action which is unethical or unfair to
investors.
 Employees, officers and directors of the Members shall not work as agents/ brokers
for selling of the schemes of the Members, except in their capacity as employees of the
member of Trustee Company.

Members shall not make any change in the fundamental attributes of a scheme,
without the prior approval of unit holders except when such change is consequent on
changes in the regulations.

Members shall avoid excessive concentration of business with any broking firm, and
excessive holding of units in a scheme by few persons or entities.

Reporting Practices:

 Members shall follow comparable and standardized valuation policies in

accordance with the SEBI Mutual Fund Regulations.

 Members shall follow uniform performance reporting on the basis of total return.

 Members shall ensure scheme wise segregation of cash and securities accounts.

Unfair Competition:

Members shall not make any statement or become privy to any act, practice or
competition, which is likely to be harmful to the interests of other Members or is likely to
place other Members in a disadvantageous position in relation to a market player or
investors, while competing for investible funds.
Observance of Statutes, Rules and Regulations:

Members shall abide by the letter and spirit of the provisions of the Statutes, Rules and
Regulations which may be applicable and relevant to the activities carried on by the
Members.

Enforcement:
Members shall widely disseminate the AMFI Code to all persons and entities
covered by it make observance of the Code a condition of employment make violation of
the provisions of the code, a ground for revocation of contractual arrangement without
redress and a cause for disciplinary action

Require that each officer and employee of the Member sign a statement that he/
she has received and read a copy of the Code establish internal controls and compliance
mechanisms, including assigning supervisory responsibility

Designate one person with primary responsibility for exercising compliance with
power to fully investigate all possible violations and report to competent authority file
regular reports to the Trustees on a half yearly and annual basis regarding observance of
the Code and special reports as circumstances require

Maintain records of all activities and transactions for at least three years, which
records shall be subject to review by the Trustees, dedicate adequate resources to carrying
out the provisions of the Code.
Definitions:

When used in this code, unless the context otherwise requires

 AMFI :- “AMFI” means the Association of Mutual Funds in India

 Associate:- “Associate” means and includes an ‘associate’ as defined in

regulation 2(c) Of SEBI (Mutual Fund) Regulations 1996.

 Fundamental investment policies:- The “fundamental investment

policies” of a scheme managed by a member means the investment objectives,
policies, and terms of the scheme, that are considered fundamental attributes of
the scheme and on the basis of which unit holders have invested in the scheme.

 Member:- A “member” means the member of the Association of Mutual Funds

in India.

 SEBI:- “SEBI” means Securities and Exchange Board of India.

 Significant Unit Holder:- A “Significant Unit Holder” means any entity

holding 5% or more of the total corpus of any scheme managed by the member
and includes all entities directly or indirectly controlled by such a unit Holder.

 Trustee:- A “trustee” means a member of the Board of Trustees or a director of

the Trustee Company.

 Trustee Company:- A “Trustee Company” is a company incorporated as a

Trustee Company and set up for the purpose of managing a mutual fund.
Role Of Intermediaries In the Indian Mutual Fund Industry

The mutual fund industry in India started in 1964 with the formation of the Unit
Trust of India (UTI). In 1987, other public sector institutions entered this business, and it
was in 1993 that the first of the private sector participants commenced its operations.

From the beginning, UTI and other mutual funds have relied extensively on
intermediaries to market their schemes to investors. It would be correct to say that
without intermediaries, the mutual fund industry would not have achieved the depth and
breadth of coverage amongst investors that it enjoys today. Intermediaries have played a
pivotal and valuable role in popularizing the concept of mutual funds across India. They
make the forms available to clients, explain the schemes and provide administrative and
paperwork support to investors, making it easy and convenient for the clients to invest.

Intermediation itself has undergone a change over the past few decades. While
individual agents provided the foundation for growth in the early years, institutional
agents, distribution companies and national brokers soon started to play an active role in
promoting mutual funds. Recently, banks, finance companies, secondary market brokers
and even post offices have also begun to market mutual funds to their existing and
potential client bases.

It is, thus clear that all types of intermediaries are required for the growth of the
industry, and their well-being, quality orientation and ways of doing business will have a
significant impact on how the mutual fund industry in India evolves in the future.
Guidelines for Selling and Marketing of Mutual Funds

Background

 Investors can purchase and sell mutual fund units through various types of
intermediaries – individual agents, distribution companies, and national/regional.

 Brokers, banks, post offices etc. as well as directly from Asset Management
Companies (AMCs), including the Unit Trust of India.

Investors of Mutual Funds can be broadly classified into three

categories

Those who want product information, advice on financial planning and investment
strategies.Those who require only a basic level of service and execution support i.e.
delivering and collecting application forms and cheques, and other basic paperwork and
post sale activities.

Those who prefer to do it all themselves, including choice of investments as well as the
process/paperwork related to investments.

To cater to different types of investors, the Mutual Fund industry comprising of AMCs
and intermediaries at present offers the following two levels of services:
Value Added Services:

This includes product information and advice on financial planning and investment
strategies. The advice encompasses analyzing an investor’s financial goals depending
upon the segment of investor, assessing his/her resources, determining his/her risk
bearing capacity/preference and then using this information to recommend an asset
Allocation/specific investment/s that are in tandem with the investor’s needs. Investors
may also receive information on taxation, estate planning and portfolio rebalancing to
remain aware about the changes/developments in market conditions and adjust the
portfolios from time to time according to their needs. In such advisory services, the
emphasis is on building an ongoing relationship with the investor/s. In India, given that
mutual funds are relatively new, there is a low level of awareness amongst investors
about the working and benefits of Mutual Funds. Also, very few investors take an
organized approach to financial planning. Therefore, it is clear that the vast majority of
investors would benefit significantly from the value-added services enumerated above.

Basic Services:

This includes providing the basic information on schemes launched to investors, assisting
them in filling application forms, submission of application forms along with cheques at
the respective office/s, delivering redemption proceeds and answering scheme related
queries investor/s may have. What investors receive here is convenience and access to
mutual funds through agents and employees of brokers who visit them and facilitate the
paperwork related to investment. These services are also given through the branches and
front office staff of AMCs and intermediaries. These are transaction-oriented service
where investors make the investment decisions themselves, and rely on the AMC and
intermediary mostly for execution and logistics support.
Recommendations:

While institutions can continue to be serviced by AMCs and intermediaries, it is proposed

that AMCs and the intermediary community focus more on individual investors and take
every effort to:

 Provide high quality advice and product information to such customers.

 Explain and position this service in such a way that clients recognize it as a
specialized and value added service, a task which may be difficult to accomplish
on their own.

 Convince investors that the transaction and intermediation cost they are paying is
justified in lieu of the long-term benefits accruing from such counseling and
guidance.

The Mutual Fund industry has to now take the more difficult but long-term
sustainable route of gathering assets from individual investors by providing them value
added, financial planning services and ensuring that Mutual Funds are an integral part of
their overall portfolio.

While doing this, the mutual fund industry in India should take care to ensure that:

 Each investor, institutional or individual, receives the exact level of service they
choose and correct advice based on clear and concrete facts and figures.
  Correspondingly, the intermediation and transaction cost investors incur should
reflect the value of the service and advice they receive.

 Mutual Funds are accurately represented and appropriately positioned to

investors, whichever channel or mode they choose to invest in. The industry
should safeguard the investor’s right towards correct description of the product,
good service, transparency and ability to take informed decisions.

 There is comprehensive knowledge and understanding of Mutual Funds amongst

all individuals instrumental in selling the Mutual Fund schemes to investors
including employees of intermediaries, individual agents and financial planners.

The AMFI Certification is designed to be a professional qualification that provides

intermediaries with a thorough understanding of mutual funds and how to present them
appropriately to clients. The AMFI certification is needed both for individuals and
corporate distributors. The certification is required for all individuals selling and
representing mutual funds to clients, whether they are employees of an intermediary
organization or they are an individual financial planner/agent.

Code of Conduct for Intermediaries:

Take necessary steps to ensure that the clients’ interest is protected.

Adhere to SEBI Mutual Fund Regulations and guidelines related to selling, distribution
and advertising practices. Be fully conversant with the key provisions of the offer
document as well as the operational requirements of various schemes.
Provide full and latest information of schemes to investors in the form of offer
documents, performance reports, fact sheets, portfolio disclosures and brochures, and
recommend schemes appropriate for the client’s situation and needs.
Highlight risk factors of each scheme, avoid misrepresentation and exaggeration, and
urge investors to go through offer documents/key information memorandum before
deciding to make investments.

Disclose all material information related to the schemes/plans while canvassing for
business.

Abstain from indicating or assuring returns in any type of scheme, unless the offer
document is explicit in this regard.

Maintain necessary infrastructure to support the AMCs in maintaining high service

standards to investors, and ensure that critical operations such as forwarding forms and
cheques to AMCs/registrars and dispatch of statement of account and redemption cheques
to investors are done within the time frame prescribed in the offer document and

SEBI Mutual Fund Regulations:

Avoid colluding with clients in faulty business practices such as bouncing cheques,
wrong claiming of dividend/redemption cheques, etc.

Avoid commission driven malpractices such as:

 Recommending inappropriate products solely because the intermediary is getting

higher commissions there from.

 Encouraging over transacting and churning of mutual fund investments to earn

higher commissions, even if they mean higher transaction costs and tax for
investors.
Avoid making negative statements about any AMC or scheme and ensure that
comparisons if any are made with similar and comparable products.

Ensure that all investor related statutory communications (such as changes in

fundamental attributes, exit/entry load, exit options, and other material aspects) are sent
to investors reliably and on time.

Maintain confidentiality of all investor deals and transactions.

When marketing various schemes, remember that a client’s interest and suitability to their
financial needs is paramount, and that extra commission or incentive earned should never
form the basis for recommending a scheme to the client.

Intermediaries will not rebate commission back to investors and avoid attracting clients
through temptation of rebate/gifts etc.

Focus on financial planning and advisory services ensure correct selling, and also reduce
the trend towards investors asking for pass back of commission.

All employees engaged in sales and marketing should obtain AMFI certification.
Employees in other functional areas should also be encouraged to obtain the same
certification.

Sequence of Steps In The Event of Breach of Above “Code of Conduct” By

the Intermediary

If any breach of the above Code of Conduct for intermediary is reported to AMFI by
either an investor or an AMC in writing, then AMFI will initiate the following steps:
Write to the intermediary (enclosing copies of the complaint and other documentary
evidence) and ask for an explanation within a time limit of 3 weeks

In case an explanation is not received within the time limit, or the explanation is not
satisfactory, AMFI will issue a warning letter indicating that any subsequent violation
will result in cancellation of AMFI Registration

If there is a proved second violation by the intermediary, the registration will be cancelled
and an intimation sent to all AMCs .The intermediary will have a right of appeal to
AMFI.

FAQ On Mutual Funds

Net Asset Value (NAV) of a scheme

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

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

How to invest in a scheme of a mutual fund?

Mutual funds normally come out with an advertisement in newspapers publishing the date
of launch of the new schemes. Investors can also contact the agents and distributors of
mutual funds who are spread all over the country for necessary information and
application forms. Forms can be deposited with mutual funds through the agents and
distributors who provide such services. Nowadays, the post offices and banks also
distribute the units of mutual funds. However, the investors may please note that the
mutual funds schemes being marketed by banks and post offices should not be taken as
their own schemes and they give no assurance of returns. The only role of banks and post
offices is to help in distribution of mutual funds schemes to the investors.

Investors should not be carried away by commission/gifts given by agents/distributors for

investing in a particular scheme. On the other hand, they must consider the track record
of the mutual fund and should take objective decisions.

Can non-resident Indians (NRIs) invest in mutual funds?

Yes, non-resident Indians can also invest in mutual funds. Necessary details in this
respect are given in the offer documents of the schemes.

How much should one invest in debt or equity oriented schemes?

An investor should take into account his risk taking capacity, age factor, financial
position, etc. As already mentioned, the schemes invest in different type of securities as
disclosed in the offer documents and offer different returns and risks. Investors may also
consult financial experts before taking decisions. Agents and distributors may also help in
this regard.

How to fill up the application form of a mutual fund scheme?

An investor must mention clearly his name, address, number of units applied for and such
other information as required in the application form. He must give his bank account
number so as to avoid any fraudulent encashment of any cheques/draft issued by the
mutual fund at a later date for the purpose of dividend or repurchase. Any changes in the
address, bank account number, etc at a later date should be informed to the mutual fund
immediately.

What should an investor look into an offer document?

An abridged offer document, which contains very useful information, is required

to be given to the prospective investor by the mutual fund. The application form for
subscription to a scheme is an integral part of the offer document. SEBI has prescribed
minimum disclosures in the offer document. An investor, before investing in a scheme,
should carefully read the offer document. Due care must be given to portions relating to
main features of the scheme, risk factors, initial issue expenses and recurring expenses to
be charged to the scheme, entry or exit loads, sponsor’s track record, educational
qualification and work experience of key personnel including fund managers,
performance of other schemes launched by the mutual fund in the past, pending
litigations and penalties imposed, etc.

When will the investor get certificate or statement of account after

investing in a mutual fund?

Mutual funds are required to dispatch certificates or statements of accounts within

six weeks from the date of closure of the initial subscription of the scheme. In case of
close-ended schemes, the investors would get either a demat account statement or unit
certificates as these are traded in the stock exchanges. In case of open-ended schemes, a
statement of account is issued by the mutual fund within 30 days from the date of closure
of initial public offer of the scheme. The procedure of repurchase is mentioned in the
offer document.

How long will it take for transfer of units after purchase from stock markets in case of
close-ended schemes?
According to SEBI Regulations, transfer of units is required to be done within thirty days
from the date of lodgment of certificates with the mutual fund.

As a unit holder, how much time will it take to receive dividends/repurchase proceeds?

A mutual fund is required to dispatch to the unit holders the dividend warrants within 30
days of the declaration of the dividend and the redemption or repurchase proceeds within
10 working days from the date of redemption or repurchase request made by the unit
holder.

In case of failures to dispatch the redemption/repurchase proceeds within the stipulated

time period, Asset Management Company is liable to pay interest as specified by SEBI
from time to time (15% at present).

Can a mutual fund change the nature of the scheme from the one
specified in the offer document?

Yes. However, no change in the nature or terms of the scheme, known as

fundamental attributes of the scheme e.g. structure, investment pattern, etc. can be carried
out unless a written communication is sent to each unit holder and an advertisement is
given in one English daily having nationwide circulation and in a newspaper published in
the language of the region where the head office of the mutual fund is situated. The unit
holders have the right to exit the scheme at the prevailing NAV without any exit load if
they do not want to continue with the scheme. The mutual funds are also required to
follow similar procedure while converting the scheme form close-ended to open-ended
scheme and in case of change in sponsor.

How will an investor come to know about the changes, if any, which may occur in the
mutual fund?
There may be changes from time to time in a mutual fund. The mutual funds are required
to inform any material changes to their unit holders. Apart from it, many mutual funds
send quarterly newsletters to their investors.

At present, offer documents are required to be revised and updated at least once in two
years. In the meantime, new investors are informed about the material changes by way of
addendum to the offer document till the time offer document is revised and reprinted.

How to know the performance of a mutual fund scheme?

The performance of a scheme is reflected in its net asset value (NAV), which is
disclosed on daily basis in case of open-ended schemes and on weekly basis in case of
close-ended schemes. The NAVs of mutual funds are required to be published in
newspapers. The NAVs are also available on the web sites of mutual funds. All mutual
funds are also required to put their NAVs on the web site of Association of Mutual Funds
in India (AMFI) www.amfiindia.com and thus the investors can access NAVs of all
mutual funds at one place.

The mutual funds are also required to publish their performance in the form of
half-yearly results, which also include their returns/yields over a period of time i.e. last
six months, 1 year, 3 years, and 5 years and since inception of schemes. Investors can
also look into other details like percentage of expenses of total assets as these have an
affect on the yield and other useful information in the same half-yearly format.

The mutual funds are also required to send annual report or abridged annual report
to the unit holders at the end of the year.

Various studies on mutual fund schemes including yields of different schemes are
being published by the financial newspapers on a weekly basis. Apart from these, many
research agencies also publish research reports on performance of mutual funds including
the ranking of various schemes in terms of their performance. Investors should study
these reports and keep themselves informed about the performance of various schemes of
different mutual funds.

Investors can compare the performance of their schemes with those of other mutual funds
under the same category. They can also compare the performance of equity-oriented
schemes with the benchmarks like BSE Sensitive Index, S&P CNX Nifty, etc.

On the basis of performance of the mutual funds, the investors should decide when to
enter or exit from a mutual fund scheme.

How to know where the mutual fund scheme has invested money
mobilized from the investors?

The mutual funds are required to disclose full portfolios of all of their schemes on
half-yearly basis which are published in the newspapers. Some mutual funds send the
portfolios to their unit holders.

The scheme portfolio shows investment made in each security i.e. equity, debentures,
money market instruments, government securities, etc. and their quantity, market value
and % to NAV. These portfolio statements also required to disclose illiquid securities in
the portfolio, investment made in rated and unrated debt securities, non-performing assets
(NPAs), etc.

Some of the mutual funds send newsletters to the unit holders on quarterly basis which
also contain portfolios of the schemes.

Difference between investing in a mutual fund and in an initial public offering (IPO) of a
company

There is a difference. IPO’s of companies may open at lower or higher price than the
issue price depending on market sentiment and perception of investors. However, in the
case of mutual funds, the par value of the units may not rise or fall immediately after
allotment. A mutual fund scheme takes some time to make investment in securities. NAV
of the scheme depends on the value of securities in which the funds have been deployed.

If schemes in the same category of different mutual funds are available,

should one choose a scheme with lower NAV?

Some of the investors have the tendency to prefer a scheme that is available at
lower NAV compared to the one available at higher NAV. Sometimes, they prefer a new
scheme which is issuing units at Rs. 10 whereas the existing schemes in the same
category are available at much higher NAVs. Investors may please note that in case of
mutual funds schemes, lower or higher NAVs of similar type schemes of different mutual
funds have no relevance. On the other hand, investors should choose a scheme based on
its merit considering performance track record of the mutual fund, service standards,
professional management, etc. This is explained in an example given below.

Suppose scheme A is available at a NAV of Rs.15 and another scheme B at Rs.90.

Both schemes are diversified equity oriented schemes. Investor has put Rs. 9,000 in each
of the two schemes. He would get 600 units (9000/15) in scheme A and 100 units
(9000/90) in scheme B. Assuming that the markets go up by 10 per cent and both the
schemes perform equally good and it is reflected in their NAVs. NAV of scheme A
would go up to Rs. 16.50 and that of scheme B to Rs. 99. Thus, the market value of
investments would be Rs. 9,900 (600* 16.50) in scheme A and it would be the same
amount of Rs. 9900 in scheme B (100*99). The investor would get the same return of
10% on his investment in each of the schemes. Thus, lower or higher NAV of the
schemes and allotment of higher or lower number of units within the amount an investor
is willing to invest, should not be the factors for making investment decision. Likewise, if
a new equity oriented scheme is being offered at Rs.10 and an existing scheme is
available for Rs. 90, should not be a factor for decision making by the investor. Similar is
the case with income or debt-oriented schemes.
 On the other hand, it is likely that the better managed scheme with higher NAV
may give higher returns compared to a scheme which is available at lower NAV but is not
managed efficiently. Similar is the case of fall in NAVs. Efficiently managed scheme at
higher NAV may not fall as much as inefficiently managed scheme with lower NAV.
Therefore, the investor should give more weight age to the professional management of a
scheme instead of lower NAV of any scheme. He may get much higher number of units
at lower NAV, but the scheme may not give higher returns if it is not managed efficiently.

How to choose a scheme for investment from a number of schemes

available?

As already mentioned, the investors must read the offer document of the mutual
fund scheme very carefully. They may also look into the past track record of performance
of the scheme or other schemes of the same mutual fund. They may also compare the
performance with other schemes having similar investment objectives. Though past
performance of a scheme is not an indicator of its future performance and good
performance in the past may or may not be sustained in the future, this is one of the
important factors for making investment decision. In case of debt oriented schemes, apart
from looking into past returns, the investors should also see the quality of debt
instruments which is reflected in their rating. A scheme with lower rate of return but
having investments in better rated instruments may be safer. Similarly, in equities
schemes also, investors may look for quality of portfolio. They may also seek advice of
experts.

Are the companies having names like mutual benefit the same as mutual
funds schemes?

Investors should not assume some companies having the name "mutual benefit" as mutual
funds. These companies do not come under the purview of SEBI. On the other hand,
mutual funds can mobilize funds from the investors by launching schemes only after
getting registered with SEBI as mutual funds.

Is the higher net worth of the sponsor a guarantee for better returns?

In the offer document of any mutual fund scheme, financial performance including the
net worth of the sponsor for a period of three years is required to be given. The only
purpose is that the investors should know the track record of the company which has
sponsored the mutual fund. However, higher net worth of the sponsor does not mean that
the scheme would give better returns or the sponsor would compensate in case the NAV
falls.

Where can an investor look out for information on mutual funds?

Almost all the mutual funds have their own web sites. Investors can also access the
NAVs, half-yearly results and portfolios of all mutual funds at the web site of Association
of mutual funds in India (AMFI) www.amfiindia.com. AMFI has also published useful
literature for the investors.

Investors can log on to the web site of SEBI www.sebi.gov.in and go to "Mutual Funds"
section for information on SEBI regulations and guidelines, data on mutual funds, draft
offer documents filed by mutual funds, addresses of mutual funds, etc. Also, in the annual
reports of SEBI available on the web site, a lot of information on mutual funds is given.

There are a number of other web sites which give a lot of information of various schemes
of mutual funds including yields over a period of time. Many newspapers also publish
useful information on mutual funds on daily and weekly basis. Investors may approach
their agents and distributors to guide them in this regard.

Can an investor appoint a nominee for his investment in units of a

mutual fund?
Yes. The nomination can be made by individuals applying for / holding units on their
own behalf singly or jointly. Non-individuals including society, trust, body corporate,
partnership firm, Karta of Hindu Undivided Family, holder of Power of Attorney cannot
nominate.

If mutual fund scheme is wound up, what happens to money invested?

In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV
after adjustment of expenses. Unit holders are entitled to receive a report on winding up
from the mutual funds, which gives all necessary details.

How can the investors redress their complaints?

Investors would find the name of contact person in the offer document of the mutual fund
scheme that they may approach in case of any query, complaints or grievances. Trustees
of a mutual fund monitor the activities of the mutual fund. The names of the directors of
Asset Management Company and trustees are also given in the offer documents.
Investors should approach the concerned Mutual Fund / Investor Service Centre of the
Mutual Fund with their complaints,

If the complaints remain unresolved, the investors may approach SEBI for facilitating
redressal of their complaints. On receipt of complaints, SEBI takes up the matter with the
concerned mutual fund and follows up with it regularly.
Selecting Funds

Before buying a fund, please make sure that one should understand all the costs and fees
associated with buying, and with owning, that fund.

Review the Prospectus

A mutual fund prospectus will provide most, if not all of the information that one need to
determine, "What's up with this fund?"

 Fees can be found in the Fees Table.

 Objectives and Policies tell more or less how the fund plans to invest out money.
 Risk tells the risk involved in owning the fund.

Buying and Selling

A one can buy some mutual funds (no-load) by contacting the fund companies directly.
Other funds are sold through brokers, banks, financial planners, or insurance agents. If a
person buy through a third party there is a good chance they'll hit to one with a sales
charge (load).

That being said, more and more funds can be purchased through no-transaction fee
programs that offer funds of many companies. Sometimes referred to as a "fund
supermarket," this service lets one to consolidate their holdings and record keeping, and it
still allows one to buy funds without sales charges from many different companies.
Popular examples are Schwab's One Source, Vanguard's Fund Access, and Fidelity's
Funds Network. Many large brokerages have similar offerings. Selling a fund is as easy
as purchasing one. All mutual funds will redeem (buy back) shares on any business day.
The Value of A person Fund

Net asset value (NAV), which is a fund's assets minus liabilities, is the value of a mutual
fund. NAV per share is the value of one share in the mutual fund, and it is the number
that is quoted in newspapers. One can basically just think of NAV per share as the price
of a mutual fund. It fluctuates everyday as fund holdings and shares outstanding change.

When one buys shares, he pays the current NAV per share plus any sales front-end load.
When one sell their shares, the fund will pay to person NAV less any back-end load.

How to Read A Mutual Fund Table

Columns 1 and 2: 52-Week Hi and Low
These show the highest and lowest prices the mutual fund has experienced over the
previous 52 weeks (one year). This typically does not include the previous day's price.

Column 3: Fund Name

This column lists the name of the mutual fund. The company that manages the fund is
written above in bold type.

Column 4: Fund Specifics

Different letters and symbols have various meanings. For example, "N" means no load,
"F" is front-end load, and "B" means the fund has both front and back-end fees. For other
symbols see the legend in the newspaper in which one found in the table.

Column 5: Dollar Change

This states the dollar change in the price of the mutual fund from the previous day's
trading.

Column 6: % Change
This states the percentage change in the price of the mutual fund from the previous day's
trading.

Column 7: Week High

This is the highest price the fund traded at during the past week.

Column 8: Week Low

This is the lowest price the fund traded at during the past week.
Column 9: Close
The last price at which the fund was traded is shown in this column.

Column 10: Week's Dollar Change

This represents the dollar change in the price of the mutual fund from the previous week.

Column 11: Week's % Change

This shows the percentage change in the price of the mutual fund from the previous week.

Don't Be Fooled by Mutual Fund Advertisements

I'm sure A person noticed all those mutual fund ads that quote their amazingly high one-
year rates of return. His first thought is "wow, that mutual fund did great!" Well, yes it
did great last year, but then person look at the three-year performance, which is lower,
and the five year, which is yet even lower. What's the underlying story here? Let's look at
a real example. These figures came from a local paper:

1 year 3 year 5 year

53% 20% 11%

Last year, the fund had excellent performance at 53%. But in the past three years the
average annual return was 20%. What did it do in years 1 and 2 to bring the average
return down to 20%? Some simple math shows us that the fund made an average return of
3.5% over those first two years: 20% = (53% + 3.5% + 3.5%)/3. Because that is only an
average, it is very possible that the fund lost money in one of those years.

It gets worse when we look at the five-year performance. We know that in the last year
the fund returned 53% and in years 2 and 3 we are guessing it returned around 3.5%. So
what happened in years 4 and 5 to bring the average return down to 11%? Again, by
doing some simple calculations we find that the fund must have lost money, an average of
-2.5% each year of those two years: 11% = (53% + 3.5% + 3.5% - 2.5% - 2.5%)/5. Now
the fund's performance doesn't look so good!

It should be mentioned that, for the sake of simplicity, this example, besides making
some big assumptions, doesn't include calculating compound interest. Still, the point
wasn't to be technically accurate but to demonstrate how misleading mutual fund ads can
be. A fund that loses money for a few years can bump the average up significantly with
one or two strong years.

Different Types of Mutual Fund Schemes

Schemes According To Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-Ended Funds:

The concept of these funds is that the investors are free to enter and exit the scheme at
any point of time during the fund period. The investor can purchase/ sell units of mutual
funds from/ through the mutual fund trust.

The price at which the units are purchased/ sold depends on the Net Asset Value (NAV)
of the fund at that point of time as specified by the funds. The NAV of the fund is the
current market value of their investments.

Besides the Net Asset Value, certain funds take an additional charge from the investors in
the form of entry/ exit loads. Some examples of open-ended funds are

 Alliance'95 (D)

 Birla Advantage Fund

 GIC Growth plus II

Close-Ended Funds :

In the case of Close-Ended Funds, the investors have to lock their funds with the trust for
a particular period of time as specified by the terms of the offer. The main problem for
the investor is that they cannot move in/out of the fund freely. In the case of Close-Ended
schemes the prices of the units are calculated in the same manner as in the case of open-
ended Schemes. However these schemes do not charge an entry/ exit load as in the case
of open-ended schemes.

Growth / Equity Oriented Scheme :

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

Income / Debt Oriented Scheme :

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

Balanced Fund :

The aim of balanced funds is to provide both growth and regular income as such schemes
invest both in equities and fixed income securities in the proportion indicated in their
offer documents. These are appropriate for investors looking for moderate growth. They
generally invest 40-60% in equity and debt instruments. These funds are also affected
because of fluctuations in share prices in the stock markets. However, NAVs of such
funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund :

These funds are also income funds and their aim is to provide easy liquidity, preservation
of capital and moderate income. These schemes invest exclusively in safer short-term
instruments such as treasury bills, certificates of deposit, commercial paper and inter-
bank call money, government securities, etc. Returns on these schemes fluctuate much
less compared to other funds. These funds are appropriate for corporate and individual
investors as a means to park their surplus funds for short periods.

Gilt Fund :

These funds invest exclusively in government securities. Government securities have no

default risk. NAVs of these schemes also fluctuate due to change in interest rates and
other economic factors as is the case with income or debt oriented schemes.

Index Funds :

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index,
S&P NSE 50 index (Nifty), etc .These schemes invest in the securities in the same weight
age comprising of an index. NAVs of such schemes would rise or fall in accordance with
the rise or fall in the index, though not exactly by the same percentage due to some
factors known as "tracking error" in technical terms. Necessary disclosures in this regard
are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are
traded on the stock exchanges.

Fund Classification :

Mutual funds now come in every possible size, shape, and color, and if one is in his
company's 401(k) or 403(b) plan, he probably noticed that already. Here are some of the
general categories of mutual funds.
Bond Funds :

Bond mutual funds are pooled amounts of money invested in bonds. A purchaser of a
bond is lending money to the issuer, and will usually collect some regular interest
payments until the money is returned. Usually the amount of interest paid (the coupon) is
fixed at a setage of the amount invested; thus, bonds are called "fixed-income"
investments.

Balanced Funds :

Balanced funds mix some stocks and some bonds. A typical balanced fund might contain
about 50-65% stocks and hold the rest of shareholder's money in bonds. It is important to
know the distribution of stocks to bonds in a specific balanced fund to understand the
risks and rewards inherent in that fund.

General Equity (Stock) Funds: Styles and Sizes :

Stock or equity mutual funds are pooled amounts of money that are invested in stocks.
Stocks represent part ownership, or equity, in corporations, and the goal of stock
ownership is to see the value of the companies increase over time. Stocks are often
categorized by their market capitalization (or caps), and can be classified in three basic
sizes: small, medium, and large. Many mutual funds invest primarily in companies of one
of these sizes and are thus classified as large-cap, mid-cap or small-cap funds.

International/Global Funds:

International funds invest in companies located in other countries. Global funds invest in
both U.S. and international-based companies. In general, international and global funds
are more volatile than domestic funds.
Growth-Oriented Funds:

Strategy: Funds' strategies differ greatly, from conservative funds that specialize in big
company blue chip stocks to aggressive funds that invest primarily in fast-growing, small
company stock. Certain funds invest in international securities markets, or focus on
specific industries or sectors such as public utilities companies.

Price Volatility: Funds that invest primarily in stocks generally will experience more
price volatility than funds investing primarily in bonds. Stock prices are set by whatever
developments are affecting market demand, from company earning projections to public
opinion.

Tax-Free Income Funds:

High Credit Quality:

Municipal bonds generally are considered to be high on the investment safety scale,
second only to securities issued by the Indian government or its agencies.

Tax-Free Yields:

Although municipal bonds pay tax-free interest, their yields are generally lower than
similar taxable investments. However, since the interest income is free from taxes,
investors actually may keep more income from the tax-free securities.

Sector Specific Funds/Schemes:

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

Tax Saving Schemes:

These schemes offer tax rebates to the investors under specific provisions of the Income
Tax Act, 1961 as the Government offers tax incentives for investment in specified
avenues. E.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the
mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-
dominantly in equities. Their growth opportunities and risks associated are like any
equity-oriented scheme.

Fund of Funds (FOF) Scheme:

A scheme that invests primarily in other schemes of the same mutual fund or other
mutual funds is known as a FoF scheme. A FoF scheme enables the investors to achieve
greater diversification through one scheme. It spreads risks across a greater universe.

Fund Fees:

A mutual fund's expense ratio is the most important fee to understand.

The expense ratio is made up of the following:
 The investment advisory fee or management fee is the money used to pay the
manager(s) of the mutual fund. On average, this fee is about 0.5% to 1.0% annually of
the fund's assets.
 Administrative costs are the costs of record keeping, mailings, maintaining a
customer service line, etc. They vary in size from fund to fund, between 0.2% and
0.4% of fund assets.
 The 12b-1-distribution fee ranges from 0.25% of a fund's assets all the way up to
1.0% of the fund's assets. This fee is spent on marketing, advertising and distribution
services.

Onedon't really need to concern with how these components of the expense ratio are
divided.One just need to know the bottom line. For actively managed funds, the average
number is between 1% - 1.5%. For index funds, the expense ratio is typically around
0.20% - 0.25%.

Turnover Rate and Taxes:

A fund's turnover rate basically represents the percentage of a fund's holdings that it
changes every year. A managed mutual fund has an average turnover rate of
approximately 85%, meaning that funds are selling most of their holdings every year.
Because buying and selling stocks costs money through commissions and spreads, a high
turnover indicates higher costs (and lower shareholder returns) for the fund. Also, funds
that have large turnover ratios will end up distributing yearly capital gains to their
shareholders. Shareholders will have to pay taxes on these gains. Keep an eye on the
turnover rate of any fund one own, and look to own funds with low (preferably no higher
than 25%) turnover rates. (Index fund turnover is around 5% or lower.)

Load or No-Load Fund:

"Load" refers to the sales charge many funds use to compensate the broker for his or her
"services" in selling the fund to an investor, and this is in addition to the annual expenses
discussed above. "No-load" funds simply are those funds that are sold directly to the
investor, rather than through a middleman.

Front-End Load:

A front-end load (or sales load) is a fee that a broker charges when one purchase shares in
the fund. Front-end loads may be as low as 1% of the amount one' investing, or as high as
8%.

Deferred Load:

Deferred load or contingent deferred sale load (CDSL) funds (sometimes called back-end
loads), often labeled "B" class shares, defer the sales fee until oneleave the fund.

Level Load:

Level load funds, or "C" shares, charge small front loads, and level loads every year there
after. A no-load fund is one that does not charge for entry or exit. It means the investors
can enter the fund/scheme at NAV and no additional charges are payable on purchase or
sale of units. Mutual funds cannot increase the load beyond the level mentioned in the
offer document. Any change in the load will be applicable only to prospective
investments and not to the original investments. In case of imposition of fresh loads or
increase in existing loads, the mutual funds are required to amend their offer documents
so that the new investors are aware of loads at the time of investments.

Sales or Repurchase/Redemption Price:

The price or NAV a unit holder is charged while investing in an open-ended scheme is
called sales price. It may include sales load, if applicable.
Repurchase or redemption price is the price or NAV at which an open-ended scheme
purchases or redeems its units from the unit holders. It may include exit load, if
applicable.

Assured Return Scheme:

Assured return schemes are those schemes that assure a specific return to the unit holders
irrespective of performance of the scheme.

A scheme cannot promise returns unless such returns are fully guaranteed by the sponsor
or AMC and this is required to be disclosed in the offer document.

Investors should carefully read the offer document whether return is assured for the entire
period of the scheme or only for a certain period. Some schemes assure returns one year
at a time and they review and change it at the beginning of the next year.

Can a mutual fund change the asset allocation while deploying funds of investors?

Considering the market trends, any prudent fund managers can change the asset
allocation i.e. he can invest higher or lower percentage of the fund in equity or debt
instruments compared to what is disclosed in the offer document. It can be done on a
short term basis on defensive considerations i.e. to protect the NAV. Hence the fund
managers are allowed certain flexibility in altering the asset allocation considering the
interest of the investors. In case the mutual fund wants to change the asset allocation on a
permanent basis, they are required to inform the unit holders and giving them option to
exit the scheme at prevailing NAV without any load.

ADVANTAGES:

 Diversification: - Buying a mutual fund provides instant holdings of several

different companies.
 Choice: - Mutual funds come in a wide variety of types. Some mutual funds
invest exclusively in a particular sector (e.g. energy funds), while others might
target growth opportunities in general. There are thousands of funds, and each has
its own objectives and focus. The key is for oneto find the mutual funds that most
closely match your own particular investment objectives.
 Liquidity: - is the ease with which onecan convert your assets--with relatively
low depreciation in value--into cash. In the case of mutual funds, it’s as easy to
sell a share of a mutual fund as it is to sell a share of stock (although some funds
charge a fee for redemptions and others onecan only redeem at the end of the
trading day, after the current value of the fund's holdings has been calculated).
 Low Investment Minimums: - Most mutual funds will allow oneto buy into the
fund with as little $1,000 or $2,000, and some funds even allow a "no minimum"
initial investment, if oneagree to make regular monthly contributions of $50 or
$100. Whatever the case may be, onedo not need to be exceptionally wealthy in
order to invest in a mutual fund.
 Convenience: - When oneown a mutual fund, onedon't need to worry about
tracking the dozens of different securities in which the fund invests; rather, all
oneneed to do is to keep track of the fund's performance. It's also quite easy to
make monthly contributions to mutual funds and to buy and sell shares in them.
 Low Transaction Costs: - Mutual funds are able to keep transaction costs -- that
is, the costs associated with buying and selling securities -- at a minimum because
they benefit from reduced brokerage commissions for buying and selling large
quantities of investments at a single time. Of course, this benefit is reduced
somewhat by the fact that they are buying and selling a large number of different
stocks. Annual fees of 1.0% to 1.5% of the investment amount are typical.
 Regulation: - The government under the Investment Company Act of 1940
regulates mutual funds. This act requires that mutual funds register their securities
with the Securities and Exchange Commission. The act also regulates the way that
mutual funds approach new investors and the way that they conduct their internal
 operations. This provides some level of safety to you, although oneshould be
aware that the investments are not guaranteed by anyone and that they can (and
often do) decline in value.
 Additional Services: - Some mutual funds offer additional services to their
shareholders, such as tax reports, reinvestment programs, and automatic
withdrawal and contribution plans.
 Professional Management: - Mutual funds are managed by a team of
professionals, which usually includes one mutual fund manager and several
analysts. Presumably, professionals have more experience, knowledge, and
information than the average investor when it comes to deciding which securities
to buy and sell. They also have the ability to focus on just a single area of
expertise. (However, it should be noted that this apparent benefit has not always
translated into superior performance, and in fact the majority of all mutual funds
don't manage to keep up with the overall performance of the market.)

Disadvantages: -

 No Insurance: - Mutual funds, although regulated by the government, are not

insured against losses. The Federal Deposit Insurance Corporation (FDIC) only
insures against certain losses at banks, credit unions, and savings and loans, not
mutual funds. That means that despite the risk-reducing diversification benefits
 provided by mutual funds, losses can occur, and it is possible (although extremely
unlikely) that onecould even lose your entire investment.
 Dilution: - Although diversification reduces the amount of risk involved in
investing in mutual funds, it can also be a disadvantage due to dilution. For
example, if a single security held by a mutual fund doubles in value, the mutual
fund itself would not double in value because that security is only one small part
of the fund's holdings. By holding a large number of different investments, mutual
funds tend to do neither exceptionally well nor exceptionally poorly.
 Fees and Expenses: - Most mutual funds charge management and operating fees
that pay for the fund's management expenses (usually around 1.0% to 1.5% per
year). In addition, some mutual funds charge high sales commissions, 12b-1 fees,
and redemption fees. And some funds buy and trade shares so often that the
transaction costs add up significantly. Some of these expenses are charged on an
ongoing basis, unlike stock investments, for which a commission is paid only
when onebuy and sell.
 Poor Performance: -Returns on a mutual fund are by no means guaranteed. In
fact, on average, around 75% of all mutual funds fail to beat the major market
indexes, like the S&P 500, and a growing number of critics now question whether
or not professional money managers have better stock-picking capabilities than
the average investor.
 Loss of Control: - The managers of mutual funds make all of the decisions about
which securities to buy and sell and when to do so. This can make it difficult for
onewhen trying to manage your portfolio. For example, the tax consequences of a
decision by the manager to buy or sell an asset at a certain time might not be
optimal for you. Onealso should remember that onetrust someone else with your
money when oneinvest in a mutual fund.
 Trading Limitations: - Although mutual funds are highly liquid in general, most
mutual funds (called open-ended funds) cannot be bought or sold in the middle of
 the trading day. Onecan only buy and sell them at the end of the day, after they've
calculated the current value of their holdings.
 Size: - Some mutual funds are too big to find enough good investments. This is
especially true of funds that focus on small companies, given that there is strict
rules about how much of a single company a fund may own. If a mutual fund has
$5 billion to invest and is only able to invest an average of $50 million in each,
then it needs to find at least 100 such companies to invest in; as a result, the fund
might be forced to lower its standards when selecting companies to invest in.
 Inefficiency of Cash Reserves: - Mutual funds usually maintain large cash
reserves as protection against a large number of simultaneous withdrawals.
Although this provides investors with liquidity, it means that some of the fund's
money is invested in cash instead of assets, which tends to lower the investor’s
potential return.
 Different Types: - The advantages and disadvantages listed above apply to
mutual funds in general. However, there are over 10,000 mutual funds in
operation, and these funds vary greatly according to investment objective, size,
strategy, and style. Mutual funds are available for virtually every investment
strategy (e.g. value, growth), every sector (e.g. biotech, Internet), and every
country or region of the world. So even the process of selecting a fund can be
tedious.

Conclusion:

A mutual fund brings together a group of people and invests their money in stocks,
bonds, and other securities.
 The advantages of mutual funds are professional management, diversification,
economies of scale, simplicity and liquidity.
 The disadvantages of mutual are high costs, over-diversification, possible tax
consequences, and the inability of management to guarantee a superior return.
 There are many, many types of mutual funds. Onecan classify funds based on asset
class, investing strategy, region, etc.
 Mutual funds have lots of costs.
 Costs can be broken down into ongoing fees (represented by the expense ratio) and
transaction fees (loads).
 The biggest problems with mutual funds are their costs and fees.
 Mutual funds are easy to buy and sell. Onecan either buy them directly from the fund
company or through a third party.
 Mutual fund advertisements can be very deceiving.

BALANCED FUND

Type Open ended Balanced Fund

Investment Pattern Under normal circumstances Equity related instruments up to
60%. Debt, Money Market and Cash upto 40%.

Fund Objective To seek to generate long-term capital appreciation and current

income from a portfolio that is invested in equity and equity
related securities as well as in fixed income securities.
Investment Suitable for investors seeking long term capital appreciation and
Horizon current income.
Net Asset Value Calculated and Declared on every Business day.

Business Day A day other than (1) Saturday and Sunday or (2) a day on which
the Stock Exchange, BSE and NSE are closed whether or not
the Banks in Mumbai are open. (3) A day on which the Sale and
Redemption of Units is suspended by the Trustee/AMC.
Option Growth and Dividend

Application Amount Rs.5, 000/- (plus in multiples of Re. 1)

Min. Additional Rs.500/- and in multiples thereof
Investment
Portfolio Disclosures Quarterly

Entry Load i) For investments of less than Rs.5Crores: Entry load at

2.25% of applicable NAV.

(iii) ii) For investments of Rs.5crores and Above: Nil

Exit Load Nil

Redemption Generally Within 3 business day for Specified RBI locations and
Cheques Issued additional 3 Business Days for Non-RBI locations

Minimum Rs.500/-
Redemption Amt.
Cut off time 3.00 p.m.
 Systematic Monthly: Minimum Rs.1000 + 5 post-dated cheques for a
Investment Plan minimum of Rs.1000 each.
Systematic Minimum of Rs.500/- and Multiples thereof
Withdrawal Plan
Switch Facility Available
Tax Benefits Capital Gains Tax and Indexation benefits.
Nomination Available
Facility
Mode of Holding Single, Joint or Anyone or Survivor
Recurring Investment Management Expenses: 1.25%, Other recurring
Expenses expenses: 1.25%, Total: 2.50%
Fund Managers Nilesh Shah Associate of Institute of Chartered Accountants,
B.Com, Grad C.W.A Over 13 Years experience in fund and
Investment management

Systematic Investment Plan (SIP) :

An SIP is a vehicle offered by mutual funds to help onesave regularly.

It is just like a recurring deposit with the post office or bank where oneput in a small
amount every month. The difference here is that the amount is invested in a mutual fund.

The minimum amount to be invested can be as small as Rs 500 and the frequency of
investment is usually monthly or quarterly.
Recently, when the Sensex rose to dizzying heights, the Net Asset Value of the funds
soared too. The NAV is determined by the market price of the stocks the fund has
invested in. So when the markets rise, the NAVs follow and vice versa.

SIP helps onereach your financial goals by investing a fixed sum monthly / quarterly, in
your chosen fund, for a pre-determined number of periods. So that onecan:

Average out on market fluctuations (no need to time the market)

Get investment discipline, helping oneinvest for and reach your future goals

Invest disposable funds – that might otherwise lie in Savings accounts, earning low
interest and letting inflation eat into them

How an SIP works

An SIP allows oneto take part in the stock market without trying to second guess its
movements AN SIP means onecommit yourself to investing a fixed amount every month.
Let's say it is Rs 1,000.

When the NAV is high, onewill get fewer units. When it drops, onewill get more units.

Date NAV Approx number of units onewill get at Rs

1,000
Jan 1 10 100

Feb 1 10.5 95.23

Mar 1 11 90.90
Apr 1 9.5 105.26
 May 1 9 111.11

Jun 1 11.5 86.95

Within six months, onewould have 5,894 units by investing just Rs 1,000 every month.

Over the long run, onemake money :

Let's say oneinvested in Prudential ICICI Technology Fund during the dotcom and tech
boom. Say onebegan with Rs 1,000 and kept investing Rs 1,000 every month. This would
be the result:

Investment period Mar 2000 – Mar 2005

Monthly investment Rs 1,000
Total amount invested Rs 61,000
Value of investment of Mar Rs 1,09,315
7, 2005
Return on investment 23.87%

Had onebought the units on March 13, 2000 at Rs 10.88 per unit (that was the NAV
then), onewould have lost because the NAV was just 7.04 on March 7, 2005. But because
onespaced out your investment, onewon.

How an SIP scores :

It makes onedisciplined in your savings. Every month oneare forced to keep aside a fixed
amount. This could either be debited directly from your account or onecould give the
mutual fund post-dated cheques.

As onesee above, it helps onemake money over the long term. Since oneget more units
when the NAV drops and fewer when it rises, the cost averages out over time. So onetide
over all the ups and downs of the market without any drastic losses.

Also, a number of mutual funds do not charge an entry load if oneopt for an SIP.
This fee is a percentage of the amount oneare investing. And if onedo not exit (sell your
units) within a year of buying the units, onedo not have to pay an exit load (same as an
entry load, except this is charged when onesell your units).

If, however, onedo sell your units within a year, onewould be charged an exit load. So it
pays to stay invested for the long-run.

The best way to enter a mutual fund is via an SIP. But to get the benefit of an SIP, think
of at least a three-year time frame when onewon't touch your money

SIP is a feature specifically designed for those who are interested in building wealth over
a long-term and plan out a better future for themselves and their family.

Anyone can enroll for this facility by starting an account with (minimum investment
amount) and giving 4/6 post-dated cheques of periodic investment based on one’s
convenience. This disciplined approach to investing gives one the following advantages:

a. Benefit of compounding

b. Rupee Cost Averaging

c. Convenience

Systematic Transfer Plan (STP) :

Through STP onecan transfer amounts at a weekly (on chosen dates 1, 7, 14, 21),
monthly or quarterly frequency from one scheme of ours to another scheme. All oneneed
to do is to give us a one-time instruction to do so. Onemay choose to regularly switch
either a fixed sum or just the appreciation part of your investment. In brief it is the
combination of SWP and SIP.

Benefit from STP

If onehave investments or plan to invest in any of our debt schemes at the same time want
to have a little exposure in any of our equity funds by investing regularly with out taking
much of a risk. Onemay opt to take STP form the debt investment into the equity scheme.
Both fixed and appreciation options would work for oneit all depends on your
requirements. If onewish to transfer an exact amount regularly then the Fixed Option is
suitable for you. If do not want this transfer to disturb your capital contribution and would
like only to switch the appreciation generated in the investment, oneshould opt for the
appreciation option.

For investors in our equity schemes STP is an excellent tool for booking the gains and
transferring them to a less volatile debt scheme. Such investors may choose to opt the
appreciation option of STP.

Performance Measures of Mutual Funds

Mutual Fund industry today, with about 34 players and more than five hundred schemes,
is one of the most preferred investment avenues in India. However, with a plethora of
schemes to choose from, the retail investor faces problems in selecting funds. Factors
such as investment strategy and management style are qualitative, but the funds record is
an important indicator too. Though past performance alone can not be indicative of future
performance, it is, frankly, the only quantitative way to judge how good a fund is at
present. Therefore, there is a need to correctly assess the past performance of different
mutual funds.

Worldwide, good mutual fund companies over are known by their AMCs and this fame is
directly linked to their superior stock selection skills. For mutual funds to grow, AMCs
must be held accountable for their selection of stocks. In other words, there must be some
performance indicator that will reveal the quality of stock selection of various AMCs.
Return alone should not be considered as the basis of measurement of the performance of
a mutual fund scheme, it should also include the risk taken by the fund manager because
different funds will have different levels of risk attached to them. Risk associated with a
fund, in a general, can be defined as variability or fluctuations in the returns generated by
it. The higher the fluctuations in the returns of a fund during a given period, higher will
be the risk associated with it. These fluctuations in the returns generated by a fund are
resultant of two guiding forces. First, general market fluctuations, which affect all the
securities, present in the market, called market risk or systematic risk and second,
fluctuations due to specific securities present in the portfolio of the fund, called
unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in
terms of standard deviation of returns of the fund. Systematic risk, on the other hand, is
measured in terms of Beta, which represents fluctuations in the NAV of the fund vis-à-vis
market. The more responsive the NAV of a mutual fund is to the changes in the market;
higher will be its beta. Beta is calculated by relating the returns on a mutual fund with the
returns in the market. While unsystematic risk can be diversified through investments in a
number of instruments, systematic risk can not. By using the risk return relationship, we
try to assess the competitive strength of the mutual funds vis-à-vis one another in a better
way.

In order to determine the risk-adjusted returns of investment portfolios, several eminent

authors have worked since 1960s to develop composite performance indices to evaluate a
portfolio by comparing alternative portfolios within a particular risk class. The most
important and widely used measures of performance are:

 The Treynor Measure

 The Sharpe Measure
 Jenson Model
 Fama Model
The Treynor Measure :

Developed by Jack Treynor, this performance measure evaluates funds on the basis of
Treynor's Index. This Index is a ratio of return generated by the fund over and above risk
free rate of return (generally taken to be the return on securities backed by the
government, as there is no credit risk associated), during a given period and systematic
risk associated with it (beta). Symbolically, it can be represented as:

Treynor's Index (Ti) = (Ri - Rf)/Bi.

Where, Ri represents return on fund, Rf is risk free rate of return and Bi is beta of the
fund.

All risk-averse investors would like to maximize this value. While a high and positive
Treynor's Index shows a superior risk-adjusted performance of a fund, a low and negative
Treynor's Index is an indication of unfavorable performance.

The Sharpe Measure :

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which is a
ratio of returns generated by the fund over and above risk free rate of return and the total
risk associated with it. According to Sharpe, it is the total risk of the fund that the
investors are concerned about. So, the model evaluates funds on the basis of reward per
unit of total risk. Symbolically, it can be written as:

Sharpe Index (Si) = (Ri - Rf)/Si

Where, Si is standard deviation of the fund.

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a
fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.
Comparison of Sharpe and Treynor :

Sharpe and Treynor measures are similar in a way, since they both divide the risk
premium by a numerical risk measure. The total risk is appropriate when we are
evaluating the risk return relationship for well-diversified portfolios. On the other hand,
the systematic risk is the relevant measure of risk when we are evaluating less than fully
diversified portfolios or individual stocks. For a well-diversified portfolio the total risk is
equal to systematic risk. Rankings based on total risk (Sharpe measure) and systematic
risk (Treynor measure) should be identical for a well-diversified portfolio, as the total risk
is reduced to systematic risk. Therefore, a poorly diversified fund that ranks higher on
Treynor measure, compared with another fund that is highly diversified, will rank lower
on Sharpe Measure.

Jenson Model :

Jenson's model proposes another risk adjusted performance measure. This measure was
developed by Michael Jenson and is sometimes referred to as the Differential Return
Method. This measure involves evaluation of the returns that the fund has generated vs.
the returns actually expected out of the fund given the level of its systematic risk. The
surplus between the two returns is called Alpha, which measures the performance of a
fund compared with the actual returns over the period. Required return of a fund at a
given level of risk (Bi) can be calculated as:

Ri = Rf + Bi (Rm - Rf)

Where, Rm is average market return during the given period. After calculating it, alpha
can be obtained by subtracting required return from the actual return of the fund.

Higher alpha represents superior performance of the fund and vice versa. Limitation of
this model is that it considers only systematic risk not the entire risk associated with the
fund and an ordinary investor can not mitigate unsystematic risk, as his knowledge of
market is primitive.

Fama Model :

The Eugene Fama model is an extension of Jenson model. This model compares the
performance, measured in terms of returns, of a fund with the required return
commensurate with the total risk associated with it. The difference between these two is
taken as a measure of the performance of the fund and is called net selectivity.

The net selectivity represents the stock selection skill of the fund manager, as it is the
excess return over and above the return required to compensate for the total risk taken by
the fund manager. Higher value of which indicates that fund manager has earned returns
well above the return commensurate with the level of risk taken by him.

Required return can be calculated as: Ri = Rf + Si/Sm*(Rm - Rf)

Where, Sm is standard deviation of market returns. The net selectivity is then calculated
by subtracting this required return from the actual return of the fund.

Among the above performance measures, two models namely, treynor measure and
jenson model use systematic risk based on the premise that the unsystematic risk is
diversifiable. These models are suitable for large investors like institutional investors with
high risk taking capacities as they do not face paucity of funds and can invest in a number
of options to dilute some risks. For them, a portfolio can be spread across a number of
stocks and sectors. However, Sharpe measure and fama model that consider the entire
risk associated with fund are suitable for small investors, as the ordinary investor lacks
the necessary skill and resources to diversify. Moreover, the selection of the fund on the
basis of superior stock selection ability of the fund manager will also help in safeguarding
the money invested to a great extent. The investment in funds that have generated big
returns at higher levels of risks leaves the money all the more prone to risks of all kinds
that may exceed the individual investors' risk appetite.

Standard Deviation

The standard deviation of a probability distribution, random variable, or population or

multiset of values is a measure of the spread of its values. It is usually denoted with the
letter σ (lower case sigma). It is defined as the square root of the variance. In other words,
the standard deviation is the root mean square (rms) deviation of values from their
arithmetic mean.
The standard deviation is the most common measure of statistical dispersion, measuring
how widely spread the values in a data set is. If the data points are close to the mean, then
the standard deviation is small. Conversely, if many data points are far from the mean,
then the standard deviation is large. If all the data values are equal, then the standard
deviation is zero.

The standard deviation of a random variable X is defined as:

Where E(X) is the expected value of X

Sharpe Ratio

The Sharpe ratio is a measure of risk-adjusted performance of an investment asset, or a

trading strategy. Since its revision by the original author made in 1994, it is defined as:

,
where R is the asset return, Rf is the return on a benchmark asset, such as the risk free rate
of return, E[R − Rf] is the expected value of the excess of the asset return over the
benchmark return, and σ is the standard deviation of the excess return.

Note, if Rf is a constant risk free return throughout the period,

. Sharpe´s 1994 revision acknowledged that the risk

free rate changes with time; prior to this revision the definition was
assuming a constant Rf.

The Sharpe ratio is used to characterize how well the return of an asset compensates the
investor for the risk taken. When comparing two assets each with the expected return
E[R] against the same benchmark with return Rf, the asset with the higher Sharpe ratio
gives more return for the same risk. Investors are often advised to pick investments with
high Sharpe ratios.

This ratio was developed by William Forsyth Sharpe. Sharpe originally called it the
"reward-to-variability" ratio before it began being called the Sharpe Ratio by later
academics and financial professionals. Recently, the (original) Sharpe ratio has often
been challenged with regard to its appropriateness as a fund performance measure during
evaluation periods of declining markets.

Trading Systems:

If we are "investing" in a system for trading, we still measure the value of our account
with the profit/loss resulting from the trades. Oneare, in effect sampling the value of the
equity curve (plus the initial investment as defined above).
As above, a Sharpe Ratio of a system of over 2.0 is considered very good. Sharpe Ratios
above 3.0 are outstanding. (The Sharpe Ratio reported by services such as Future Truth is
calculated in some other way and get other numbers.)

Buy/Hold Example:

Assume we established an account in 6/96 and bought 5000 SPDRs (S&P depository
receipts). The total value of what we bought would be about $335,000 at that time [$67 x
5000]. If our account increased to 479,000 over the two years (not the real numbers), the
average return would be $6,000 per month or about 1.80% per month of the original
$335,000. Annualized, this would be about 21.5% [1.80% * 12]. Assume the standard
deviation of monthly returns in our account is 2.4%. Annualizing this we get 8.31%.

Excess return (excess over risk-free return) is 21.5% - 5.0% = 16.5%.

Sharpe Ratio = 16.5% / 8.31% = 1.99
(The real number over this period was about 0.60.

Buy/Hold Using Margin:

Now consider the use of margin. Assume we bought twice as many SPDRs as
above but borrowed half the money from our broker as a margin loan. Our investment
would be the same but now our monthly returns will be twice as great so our annualized
return would be 43% [2 * 21.5%] before interest on the margin loan. Assuming margin
interest at 5%, our net return would be 38% [43% - 5%]. The excess return is now 33%
[38% - 5%]. The standard deviation of returns would also double to 16.62%. So the
Sharpe Ratio becomes:

Sharpe Ratio = 33% / 16.62% = 1.99 which is the same as above.

Thus, by increasing the leverage, we have increased the returns and the risk (= variability
of returns = standard deviation) but have not changed the Sharpe Ratio. Thus, the "risk-
adjusted return" is the same. Using a moderate level of leverage increases the return and
risk but leaves the Sharpe Ratio unchanged.

The actual figures for SPDRs over this period show this effect clearly. The table below
shows the numbers. The column "Leverage" is the ratio of the investment to our account
equity. A "Leverage" of 2 means we are investing twice the value of our equity,
borrowing the balance as a margin loan.

Leverage Std. dev. Return Sharpe

1. 46% 32% 0.58
2. 73% 42% 0.50
3. 126% 63% 0.46
4. 182% 82% 0.42
5. 242% 99% 0.39
6. 286% 107% 0.36
7. 358% 123% 0.33
8. 437% 138% 0.30
9. 523% 152% 0.28

As the leverage is increasing, both the Standard Deviation and the Return increase, but
not at the same rate so the Sharpe Ratio is decreases.

This is because losses tend to hurt worse than gains help. The following data
will illustrate this:
If, without leverage, an investment loses 10% in one month, it would require 11% return
to get back to where we started. [90% * 111% = 100%] But with a leverage of 2 to 1, this
investment would lose 20% in that same month. Then it requires 25% to get even. [80% *
125% 100%]
Achieving a 20% gain would only get up back to 96% of the original value.
 [80% * 120% = 96%]
With leverage of 5 to 1, this investment would lose 50% in that month.
Then it would require 100% return to get even again. [50% * 200% = 100%]
Achieving a 50% gain would only get up back to 75% of the original value. [50% * 150%
= 75%]
With leverage of 10 to 1, this investment would lose 100% in that month and we would
be broke.

So with higher and higher leverage, the standard deviation continues to increase and the
variations in monthly returns bias the returns lower than we would otherwise expect. This
lowers the risk-adjusted return and the Sharpe ratio. So the Sharpe Ratio is roughly
independent of leverage only so long as the standard deviation doesn't get too high.

Futures have an inherent leverage of as much as 10 to 1, which is why it is so easy to go

broke trading them. I have to severely limit the monthly (daily) losses, (e g: lower the
standard deviation of returns or increase the Sharpe Ratio) to avoid going broke
.
A trading system with a smoothly increasing equity curve will have very consistent
monthly returns, a low standard deviation of returns, and a high Sharpe Ratio. This
greatly reduces the chances of going broke. Smooth equity curves are good. Choppy
equity curves are risky. So I should always optimize our trading system for the highest
Sharpe Ratio.
With futures, the calculation is similar to the above except that the "margin loan" is
interest free. (It is built into the futures price as part of the "fair value" calculation.) It is a
little more confusing since oneare really using margin inherently.

Assume that on 6/96, we purchased five S&P contracts. We are really buying about
$1,675,000 worth of equity. [5 * $670 * 500 big points]. Assume the margin requirement
was $33,500 per contract or $167,500 for 5 contracts. Assume we want to allow twice
this in our account to cover drawdowns so we establish an account of $335,000 (just as in
the above example). We will use exactly the same position trading system we used for
trading the SPDRs (and assume that we get the same trading signals in this simplified
example). This is exactly the same as was trading the SPDRs on margin with two
changes:
The leverage is now 5 to 1 instead of 2 to 1.
With no margin, the return on our system trading SPDRs was 21.5%. Trading futures, the
return will be 5% less than this since the price of S&P futures decreases to the S&P cash
index nearing expiration (e g: "premium" decreases to zero) with the "fair value"
calculation. It turns out that the effective return would be 16.5% before applying the
leverage multiplier. But we make 5% on the margin we have on deposit with the broker.
The calculations now become:
Annualized return = 16.5% * 5 = 82.5%
Interest income on margin = 5%
Total return = 82.5% + 5% = 87.5%
Excess return = 87.5% - 5% = 82.5%
Annualized standard deviation = 8.31% * 5 = 41.55
Sharpe Ratio = 1.99 (which is the same as above)

I can see that the interest I earn on the margin amount equals the risk-free rate so the two
amounts cancel. Thus, the 82.5% we make can be used as the "excess return" if I am
getting interest on our margin deposit. (There are other ways of getting to this same
conclusion but I use this way to be consistent with the above examples.)

Treynor Ratio is a measurement of the returns earned in excess of that which could
have been earned on a riskless investment (i.e. Treasury bill) (per each unit of market risk
assumed).
The Treynor ratio (sometimes called reward-to-volatility ratio) relates excess return over
the risk-free rate to the additional risk taken; however systematic risk instead of total risk
is used. The higher the Treynor ratio, the better the performance under analysis.

Where
Treynor ratio,
Portfolio return,
Risk free rate

Portfolio beta

Like the Sharpe ratio, the Treynor ratio (T) does not quantify the value added, if any, of
active portfolio management. It is a ranking criterion only. A ranking of portfolios based
on the Treynor Ratio is only useful if the portfolios under consideration are sub-portfolios
of a broader, fully diversified portfolio. If this is not the case, portfolios with identical
systematic risk, but different total risk, will be rated the same. But the portfolio with a
higher total risk is less diversified and therefore has a higher unsystematic risk which is
not priced in the market.

An alternative method of ranking portfolio management is Jensen's alpha, which

quantifies the added return as the excess return above the security market line in the
capital asset pricing model.

Jensen's Alpha (or Jensen's Performance Index) is used to determine the excess return of
a stock, other security, or portfolio over the security's required rate of return as
determined by the Capital Asset Pricing Model. This model is used to adjust for the level
of beta risk, so that riskier securities are expected to have higher returns. The measure
was first used in the evaluation of mutual fund managers by Michael Jensen in the 1970's.

To calculate alpha, the following inputs are needed:

 The realized return (on the portfolio),
 The market return,
 The risk-free rate of return, and
 The beta of the portfolio.

Jensen's alpha = Portfolio Return - (Risk free return + (Market Return - Risk free
Return) * Beta)

Alpha is still widely used to evaluate mutual fund and portfolio manager performance,
often in conjunction with the Sharpe ratio and the Treynor ratio.

Jensen's model proposes another risk adjusted performance measure. This measure was
developed by Michael C. Jensen and is sometimes referred to as the Differential Return
Method. This measure involves evaluation of the returns that the fund has generated vs.
the returns actually expected out of the fund given the level of its systematic risk. The
surplus between the two returns is called Alpha, which measures the performance of a
fund compared with the actual returns over the period.

Required return of a fund at a given level of risk (Bi) can be calculated as:
Ri = Rf + Bi (Rm - Rf)

Where, Rm is average market return during the given period. After calculating it, alpha
can be obtained by subtracting required return from the actual return of the fund.

Higher alpha represents superior performance of the fund and vice versa.
Limitation of this model is that it considers only systematic risk not the entire risk
associated with the fund and an ordinary investor can not mitigate unsystematic
risk, as his knowledge of market is primitive.

Fama and French started with the observation that two classes of stocks have tended to do
better than the market as a whole: (i) small caps and (ii) stocks with a high book-value-to-
price ratio (customarily called "value" stocks; their opposites are called "growth" stocks).
They then added two factors to CAPM to reflect a portfolio's exposure to these two
classes:

r - Rf = beta3 x (Km - Rf) + bs x SMB + bv x HML + alpha

Here r is the portfolio's return rate, Rf is the risk-free return rate, and Km is the return of
the whole stock market. The "three factor" beta is analogous to the classical beta but not
equal to it, since there are now two additional factors to do some of the work. SMB and
HML stand for "small [cap] minus big" and "high [book/price] minus low"; they measure
the historic excess returns of small caps and "value" stocks over the market as a whole.
By the way SMB and HML are defined, the corresponding coefficients b s and bv take
values on a scale of roughly 0 to 1: b s = 1 would be a small cap portfolio, b s = 0 would be
large cap, bv = 1 would be a portfolio with a high book/price ratio, etc.

One thing that's interesting is that Fama and French still see high returns as a reward for
taking on high risk

R-Squared
A statistical measure that represents the percentage of a fund's or security's movements
that are explained by movements in a benchmark index. For fixed-income securities the
benchmark is the T-bill, and for equities the benchmark is the S&P 500.

R-squared values range from 0 to 100. An R-squared of 100 means that all movements of
a security are completely explained by movements in the index.

A higher R-squared value will indicate a more useful beta figure. For example, if a fund
has an R-squared value of close to 100, yet has a beta below 1, it is most likely offering
higher risk-adjusted returns. A low R-squared means oneshould ignore the beta.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison

to the market as a whole. Also known as "beta coefficient".

Beta is calculated using regression analysis, and onecan think of beta as the tendency of a
security's returns to respond to swings in the market. A beta of 1 indicates that the
security's price will move with the market. A beta less than 1 means that the security will
be less volatile than the market. A beta greater than 1 indicates that the security's price
will be more volatile than the market. For example, if a stock's beta is 1.2, it's
theoretically 20% more volatile than the market.

Many utilities stocks have a beta of less than 1. Conversely, most hi-tech Nasdaq-based
stocks have a beta greater than 1, offering the possibility of a higher rate of return but also
posing more risk
Introduction of UTI mutual fund-company profile

UTI Mutual Fund is managed by UTI Asset Management Company Private Limited
(Estb: Jan 14, 2003) who has been appointed by the UTI Trustee Company Private
Limited for managing the schemes of UTI Mutual Fund and the schemes transferred /
migrated from UTI Mutual Fund.

The UTI Asset Management Company has its registered office at: UTI Tower, Gn Block,
Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 will provide professionally
managed back office support for all business services of UTI Mutual Fund (excluding
fund management) in accordance with the provisions of the Investment Management
Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of
the schemes. State-of-the-art systems and communications are in place to ensure a
seamless flow across the various activities undertaken by UTI AMC.

UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers)
Regulations, 1993 on February 3 2004, for undertaking portfolio management services
and also acts as the manager and marketer to offshore funds through its 100 % subsidiary,
UTI International Limited, registered in Guernsey, Channel Islands.

UTI Mutual Fund has come into existence with effect from 1st February 2003. UTI Asset
Management Company presently manages a corpus of over Rs. 34500 Crore.

UTI Mutual Fund has a track record of managing a variety of schemes catering to the
needs of every class of citizenry. It has a nationwide network consisting 70 UTI Financial
Centers (UFCs) and UTI International offices in London, Dubai and Bahrain. With a
view to reach to common investors at district level, 4 satellite offices have also been
opened in select towns and districts. It has a well-qualified, professional fund
management team, who has been highly empowered to manage funds with greater
efficiency and accountability in the sole interest of unit holders. The fund managers are
also ably supported with a strong in-house equity research department. To ensure better
management of funds, a risk management department is also in operation.
The origin of Mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic improvements, both
quality wise as well as quantity wise. Before, the monopoly of the market had seen an
ending phase; the Assets under Management (AUM) were Rs. 67bn. The private sector
entry to the fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004;
it reached the height of 1,540 bn.

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

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

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

Starting out as an industry with a single player, the UTI, in 1963, the Mutual fund
industry in India has come a long way since then. Today, close to 30 players, offering
over 460 schemes, dot the industry landscape. The industry has gained enormously in size
as reflected in its assets under management which now stand at a whopping Rs.1, 75,918
cr., as on July 31, 2005 from Rs.1, 00,000 crore in early 2000.

The journey of the industry has been nothing less than spectacular, particularly in the last
5 years or so. A host of factors has contributed to the phenomenal growth of the industry.
First and foremost, as a result of the increased competition, industry players have focused
on product innovation to drive growth. This has not only helped the industry players to
tap the latent needs of the investors, but also enabled them to expand markets as more and
more investors, including retail investors, have begun to look at Mutual funds as a
suitable investment avenue. Second, the need for greater market penetration has forced
industry players to devise innovative channels of delivery to gain and strengthen their
market share. There are new channels and models of distribution emerging as the race
among the fund houses heats up to enhance reach to potential investors. Third, a slew of
tax incentives, which include rationalizing of capital gains tax, aiming to boost equity
investing coupled with a benign interest rate regime have helped Mutual funds gain
popularity with investors. Finally, a slew of regulatory measures taken by SEBI have
played a crucial role in instilling confidence among investors, especially retail investors.
No doubt these factors have attributed significantly to the growth of the Mutual fund
industry in the country, particularly in recent times.

Further, the emergence of India as a major investment destination has done a world of
good to the Mutual fund industry in the country as it is witnessing entry of many big
names in the global investment management business. The entry of major global players
like Morgan Stanley, Principal, Sun life, and Fidelity, while Vanguard is mulling over its
India debut, augurs well for the industry as not only these global investment management
firms bring with them the expertise gained internationally but also bring the best
international practices in terms of performances and investor services which will benefit
the industry and will go a long way in helping it catch up with its counter parts in
developed markets like the US and the UK.

A host of things suggests that the industry is all set to enter a period of high growth. A
robust economy, fledgling stock market, increasing awareness and acceptance of Mutual
funds among investors, strong domestic currency, and healthy corporate performances are
among some of the major factors, which suggest that the industry's future is bright.
However, to gain size, and catch up with developed markets like the US, the industry has
to remove certain obstacles, which pose significant challenges. .

Though young, the industry has made significant strides in terms of its variety,
sophistication and regulation. The mutual fund industry's existence in India is divided
into four phases. The first phase, which spanned across 1963-1987, saw UTI
consolidating its position by offering a host of products and extending its reach
throughout the country. The next phase (1987-93) marked the arrival of mutual funds
sponsored by public sector banks and financial institutions. With the arrival of private
sector players, both Indian and foreign, began the third phase (1993-1996). 1996 marks
yet another milestone in the history of the mutual fund industry in the country as SEBI
(Mutual Funds) Regulations came into being. The fourth phase, which is in vogue now,
begun in 2003, marks, perhaps, the most significant event in the history of the mutual
fund industry restructuring of UTI. It is observes that the rush of players into the mutual
fund industry during the last decade could be attributed to low entry barriers, both
regulatory and competitive, and the desire of the existing financial players to broad-base
their activities in the financial sector. The period is also characterized by significant
developments such as standardization of operations, increased influence of technology,
best practices, product innovation, and improved regulatory environment. With the total
Assets Under Management (AUM) increasing from Rs.1, 01,565 cr in January 2000 to
Rs. 1, 75,918 cr by July 31, 2005, the industry's growth has been nothing but exceptional.
And if size is the measure of dominance, the Indian mutual fund industry can now boast
of that. A slew of factors have contributed to a surge in the industry's growth. First and
foremost, a buoyant domestic economy coupled with a booming stock market has been
one of the major drivers of growth in recent times, particularly in the last five years.
Another significant factor facilitating this growth has been a conducive regulatory
regime, thanks to increased efforts by Sebi to improve market surveillance and protect
investors' interests. Besides, increased focuses on product and distribution innovations
have also fueled the growth of the industry.
It has reset and upgraded transparency standards for the mutual funds industry. All the
branches, UFCs and registrar offices are connected on a robust IT network to ensure cost-
effective quick and efficient service. All these have evolved UTI Mutual Fund to position
as a dynamic, responsive, restructured, efficient, and transparent and SEBI compliant
entity.

Sponsers :

Three leading public sector banks – Bank of Baroda (BOB), Punjab National Bank (PNB)
and State Bank of India (SBI) and Life Insurance Corporation of India (LIC), the largest
public financial investment institution and life insurer in India have entered into an
agreement with the Government of India as Sponsors of the UTI Mutual Fund.

UTI Trustee Company Private Limited a company incorporated under The Companies
Act, 1956 will be the Trustee of transferred/migrated schemes are the first and sole
trustee of the Mutual Fund under the Trust Deed dated December 9, 2002 executed
between the Sponsors and the Trustee Company (the Trustee).
Board of Directors :

 Mr Janki Ballabh
 Prof P G Apte
 Shri S P Oswal
 Shri Babasaheb N Kalyani
 Shri Ashok K Kini
 Prof P V Ramana
 Shri S Ravi

Asset Management
UTI Asset Management Company Private Limited is a company incorporated under The
Companies Act, 1956.

Registered office: UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai -
400 051.

UTI Asset Management Company Private Limited has been appointed as the Asset
Management Company of the UTI Mutual Fund by the Trustee in terms of Investment
Management Agreement dated December 9, 2002 executed between UTI Trustee Company
Private Limited and UTI Asset Management Company Private Limited. The AMC was
approved by SEBI to act as the asset management company for UTI Mutual Fund vide their
letter no.MF/BC/PKN/03 dated January 14, 2003. Out of the AMC's total paid-up capital of
Rs.10 crore, 25% is held by each of the Sponsors. The AMC apart from managing the
schemes of UTI Mutual Fund will also manage the schemes transferred/migrated from UTI
MF, in accordance with the provisions of the Investment Management Agreement, the Trust
Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes.

UTI AMC has been registered as a portfolio manager under the SEBI (Portfolio Managers)
Regulations, 1993 on February 3 2004, for undertaking portfolio management services. The
registration code is PM/INP 000000860.

UTI International Ltd., a 100 % subsidiary of UTI AMC, registered in Guernsey, Channel
Islands, and acts as manager to offshore funds and markets these offshore funds abroad.

Systems are in place to ensure that bank and securities accounts are segregated and there is
no conflict of interest between the various activities undertaken by UTI AMC.

UTI MUTUAL FUND :

Uti MF Monthly Income Plan - Long Term Plan: -.

Basic Scheme Information

Nature of Scheme. An open-ended scheme. Monthly income is not assured and

subject to availability of surplus.
Inception Date. To be announced later or Not Applicable
Option/Plan Growth ,Quarterly and ,Monthly Dividend Option,
Entry Load. Nil
Exit Load. • In In respect of each purchase / Switch-in of Units up to

(As a % of the and including Rs. 10 lakh in value an Exit Load of 0.50%
Applicable NAV) is payable if Units are redeemed / Switched-out within 6
months from the date of allotment.

In respect of each purchase / Switch-in of Units greater than Rs. 10

lakh in value, an Exit Load of 0.25% is payable if Units are
redeemed / Switched-out within 3 months from the date of allotment.
Minimum Rs.25000 and in multiples of Rs.100 thereof to open an account /
Application folio. Additional purchases is Rs. 1000 and in multiples of Rs. 100
Amount. thereof.
Lock-In-Period. Nil
Net Asset Value Every Business Day.
Periodicity.
Redemption Normally dispatched within 3 Business Days
Proceeds.

Investment Objective: -

The primary objective of Scheme is to generate regular returns through investment

primarily in Debt and Money Market Instruments. The secondary objective of the
Scheme is to generate long-term capital appreciation by investing a portion of the
Scheme’s assets in equity and equity related instruments. However, there can be no
assurance that the investment objective of the Scheme will be achieved.

Investment Pattern :

The asset allocation under the Scheme will be as follows:

Sr Type Of Instruments Normal Allocation(% Deviation (%) Risk

of Assets) Profile
1 Debt instruments and Money 75 100 Low to
Market instruments Medium
2 Equities and Equity related 25 100 Medium
instruments to High

The investments in central and state government securities will not exceed 75% of the net
assets of the respective Plans. It is the intention of the Scheme that the investments in
securities debt will not, normally exceed 75% of the net assets of the respective Plans.
Pending deployment of funds of the Scheme in securities in terms of the investment
objective of the Scheme, the AMC may invest the funds of the Scheme in short term
deposits of scheduled commercial banks

Investment Strategy And Risk Control :

Investment Strategy: The net assets of the respective Plans will be invested in Debt and
Money market instruments. They generate regular returns long-term capital appreciation
by investing a portion of the Scheme’s assets in equity and equity related instruments.

Debt Investments:

 Debt securities (in the form of non-convertible debentures, bonds, secured premium
notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securities debt,
pass through certificates, asset backed securities, mortgage backed securities and any other
domestic fixed income securities including structured obligations etc.) include, but are not
limited to:
 Debt obligations of the GOI , State and local Governments, Government Agencies
and statutory bodies,
 Securities that have been guaranteed by Government of India and State Governments,
 Securities issued by Corporate Entities (Public / Private sector undertakings),
 Securities issued by Public/Private banks and development financial institutions.

Money Market Instruments Include:

 Commercial papers

 Commercial bills

 Treasury bills

 Government securities having an unexpired maturity up to one year

 Call or notice money

 Certificate of deposit

 Usance bills

 Permitted securities under a repo / reverse repo agreement

 Any other like instruments as may be permitted by RBI / SEBI from time to time
Investments will be made through secondary market purchases, initial public offers, other
public offers, placements and right offers (including renunciation). The securities could be
listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity. The
AMC retains the flexibility to invest across all the securities / instruments in debt and money
market.

Investment in debt instruments shall generally have a low risk profile and those in money
market instruments shall have an even lower risk profile. The maturity profile of debt
instruments will be selected in accordance with the AMC’S view regarding current
market conditions, interest rate outlook and the stability of ratings.

 Equity Investments
 The investment approach would be based on the concept of economic earning power
and cash return on investments. Five basic principles would serve as the foundation
for this investment approach. They are as follows:
 Focus on long-term growth.
 View investments as conferring a proportionate ownership of the business.
 Maintain a margin of safety (i.e. the price of purchase represents a discount to the
intrinsic value of that business).
 Maintain a balanced outlook on the market by regularly monitoring economic trends
and investor sentiment.
 The decision to sell a holding would be based on one of three reasons:
 The anticipated price appreciation has been achieved or is no longer probable; or
 Alternative investments offer superior total return prospects; or
 A fundamental change has occurred in the company or the market in which it
competes.

In summary, the assessment of investment value is a function of extensive research and

based on data and reasoning, rather than current fashion and emotion. The idea is to
develop a model that allows us to identify businesses with superior growth prospects and
good management, at a reasonable price.

In order to implement the investment approach effectively, it would be important to

periodically meet the management face to face. This would provide an understanding of
their broad vision and commitment to the long-term business objectives. These meetings
would also be useful in assessing key determinants of management quality such as
orientation to minority shareholders, ability to cope with adversity and approach to
allocating surplus cash flows. Discussions with management would also enable
benchmarking actual performance against stated commitments.

Pursuant to the SEBI Regulations, the respective Plans shall not make any investment

 Any unlisted security of an associate or group company of the Sponsors; or

 Any security issued by way of private placement by an associate or group
company of the Sponsors; or
 The listed securities of group companies of the Sponsors, which is in excess of
25% of the net assets.

The respective Plans may invest in other schemes managed by the AMC or in the
schemes of any other mutual funds, provided it is in conformity with the investment
objectives of the Scheme and in terms of the prevailing SEBI Regulations. As per the
SEBI Regulations, no investment management fees will be charged for such investments
and the aggregate inter scheme investment made by all the schemes of UTI Mutual Fund
or in the schemes of other mutual funds shall not exceed 5% of the net asset value of the
UTI Mutual Fund.

The respective Plans may also invest in suitable investment avenues in overseas financial
markets for the purpose of diversification, commensurate with the Scheme objectives and
subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may
also appoint overseas investment advisors and other service providers, as and when
permissible under the regulations.

Risk Control:

Investments made from the corpus of the respective Plans would be in accordance with
the investment objective of the respective Plans and the provisions of the SEBI
Regulations. The AMC will strive to achieve the investment objective by way of a
judicious portfolio mix comprising of debt and money market instruments. Every
investment opportunity would be assessed with regard to credit risk, interest rate risk and
liquidity risk.

Credit Risk:

A detailed credit evaluation of each investment opportunity will be undertaken. The

AMC will utilize ratings of recognized rating agencies as an input in the decision making
process. Investments in bonds and debentures will usually be in instruments that have
been assigned high investment grade ratings by a recognized rating agency. In line with
SEBI Circular No MFD/CIR/9/120/2000 dated November 24, 2000; the AMC may
constitute committee(s) to approve proposals for investments in unrated instruments. The
details of such investments would be communicated by the AMC to the Trustee in their
periodical reports.

Interest Rate Risk:

An interest rate scenario analysis would be performed on an ongoing basis, considering

the impact of the developments on the macro-economic front and the demand and supply
of funds.The AMC would manage the investments of the Scheme on a dynamic basis to
exploit emerging opportunities in the investment universe and manage risks at all points.

Liquidity Risk:

The AMC will attempt to reduce liquidity risk by investing in securities that would result
in a staggered maturity profile of the portfolio, investment in structured securities that
provide easy liquidity and securities that have reasonable secondary market activity. In
the event of a requirement to liquidate all or a substantial part of these investments in a
very short duration of time, the AMC may not be able to realize the full value of these
securities to an adverse impact on the Net Asset Value of the Scheme.
Uti prudence fund:

Investment objective:

The investment objective of the Scheme is to provide periodic returns and capital
appreciation over a long period of time, from a judicious mix of equity and debt
investments, with the aim to prevent/ minimize any capital erosion. Under normal
circumstances, it is envisaged that the debt: equity mix would vary between 60:40 and
40:60 respectively. This mix is geared to achieve the investment objective and is expected
to result in regular income, capital appreciation and also prevent capital erosion

Basic Scheme Information:

Nature of Scheme. Open Ended Balanced Scheme

Inception Date. Feb 01, 1994
Option/Plan Dividend Plan, Growth Plan,
Entryload. 1) In respect of each purchase / switch-in of Units less
(as a % of the Applicable than Rs. 5 crore in value, an Entry Load of 2.25% is
NAV) payable.
2) In respect of each purchase / switch-in of Units equal
to or great than Rs. 5 crore in value, no Entry Load is
payable.
Exit load Each purchase in an Exit load of 1% is payable if Units
redeemed out within 1 year from the date of allotment.
MinimumApplication Rs.5000 and in multiples of Rs.100 thereof to open an
Amount. account
Lock-In-Period. Nil
Net Asset Value Periodicity. Every Business Day.
Redemption Proceeds. Normally dispatched within 3 Days

Investment Pattern:
The asset allocation under the Scheme will be as follows:

Sr.no. Asset Type (% Of Portfolio) Risk Profile

1 Equities and Equity Related Instruments 40 - 60 Medium to High
2 Debt and Money Market Instruments * 40 - 60 Low to Medium

*
Investment in Securities debt would not exceed 10% of the net assets of the scheme.

In such times when the interest rates are high, investment in debt would be more
attractive versus equities and accordingly the Fund is likely to increase the debt
component in the Scheme's portfolio. Similarly in times when the interest rates are low
and the equity valuations are cheap, the Scheme is likely to reduce exposure to debt and
increase exposure to equities. In addition to debt and equities the scheme will also invest
in money market instruments. The ect proportion in money market instruments will be a
function of the liquidity needs and the attractiveness of the debt/ equity markets. At times
*
when neither the debt market nor equities are attractive for Investment in Securitized
debt, if undertaken, would not exceed 10% of the net assets of the scheme.

In such times when the interest rates are high, investment in debt would be more
attractive versus equities and accordingly the Fund is likely to increase the debt
component in the Scheme's portfolio. Similarly in times when the interest rates are low
and the equity valuations are cheap, the Scheme is likely to reduce exposure to debt and
increase exposure to equities. In addition to debt and equities the scheme will also invest
in money market instruments. The exact proportion in money market instruments will be
a function of the liquidity needs and the attractiveness of the debt/ equity markets

The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such as
Futures and Options and such other derivative instruments as may be introduced from
time to time for the purpose of hedging and portfolio balancing and other uses as may be
permitted under the Regulations and Guidelines.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in
overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations
from time to time. Also refer to the Section on Policy on offshore Investments by the
Scheme(s).

Subject to the Regulations and the applicable guidelines, the Scheme may, engage in
Stock Lending activities. Also refer to Section on Stock Lending by the Fund.

If the investment in equities and related instruments falls below 40% of the portfolio or
rises above 60% of the portfolio of the Scheme at any point in time, it would be
endeavored to review and rebalance the composition.

Notwithstanding anything stated above, subject to the regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market
conditions, market opportunities, applicable regulations and political and economic
factors. It may be clearly understood that the percentages stated above are only indicative
and are not absolute and that they can vary substantially depending upon the

Perception of the AMC, the intention being at all times to seek to protect the NAV of the
scheme. Such changes will be for short term and defensive considerations.

Provided further and subject to the above, any change in the asset allocation affecting the
investment profile of the Scheme and amounting to a change in the Fundamental
Attributes of the Scheme shall be effected in accordance with sub-regulation (15A) of
regulation 18 of SEBI regulations.

Investment Strategy And Risk Control:

As outlined above, the investments in the Scheme will comprise both debt and equities.
The Fund would invest in Debt instruments such as Government securities, money
market instruments, securities debts, corporate debentures and bonds, preference shares,
quasi Government bonds, and in equity shares. In the long term, the mix between debt
instruments and equity instruments is targeted between 60:40 and 40:60 respectively. The
exact mix will be a function of interest rates, equity valuations, reserves position, risk
taking capacity of the portfolio without compromising the consistency of dividend pay
out (in the case of Dividend Plan), need for capital preservation and the need to generate
capital appreciation.

UTI Gold Exchange Traded Fund:

Summary:
Type Open-ended ETF: Gold Benchmark Price of gold**
Min. Investment Rs 20,000 Face Value Rs 100***
Entry Load 2.50%* Exit Load Nil
Issue Opens March 1, 2007 Issue Closes March 12, 2007

2.50% entry load for investments less than Rs 5 m; 1.50% for Rs 5 m - Rs 20 m; 0.75%

for Rs 20 m - Rs 50 m; Nil for investments of Rs 50 m and above.

The market price of gold in the domestic market on any business day (valuation day)

would be arrived at as follows:

Domestic price of gold = (London Bullion Market Association AM fixing in US$/ounce

X conversion factor for converting ounce into kg for 995 fineness X rate for US$ into

INR) + custom duty for import of gold + sales tax/octroi and other levies applicable. The

gold held by gold Exchange Traded Fund shall be valued at the AM fixing price of

London Bullion Market Association (LBMA) in US dollars per troy ounce for gold

having a fineness of 995 parts per thousand.

Allotment price will be on the basis of the closing value of the Gold Price on the

allotment date of New Fund Offer Period.

Investment Objective:

The investment objective of the fund is to endeavour to provide returns that, before
expenses, closely track the performance and yield of Gold. However the performance of
the scheme may differ from that of the underlying asset due to tracking error. There can
be no assurance or guarantee that the investment objective of UTI-Gold ETF achieved.

Is the fund for you?

UTI-Gold ETF is the second Gold Exchange Traded Fund in the country. It is an open-

ended passively managed ETF, designed to provide returns, which closely correspond to

the performance and yield of gold. Gold ETFs offer investors the advantage of investing

in high quality gold without the burden of physical delivery.

UTI-Gold ETF will be traded on the stock exchange (to start with on the National Stock

Exchange-NSE) on a real time basis (i.e. buying/selling can be done any time during the

trading hours) after the New Fund Offer (NFO) period.

During the NFO period, investors can purchase units of UTI-Gold ETF directly from the
fund house. The minimum investment amount during the NFO is Rs 20,000. There is a
maximum entry load of 2.50% at the time of investment.

Investment Amount (Rs) Entry Load

Less than 5 m 2.50%
>= 5 m and < 20 m 1.50%
>= 20 m and < 50 m 0.75%
 50 m and above Nil

After the fund gets listed in the stock exchange (approximately 30 days after the NFO
closes), investors can buy/sell units directly from the exchange through a stock broker.
While dealing with a stock broker there is no entry load; rather, investors have to pay
brokerage/commission (usually hovering around 0.50% of the transaction value). The
minimum number of units that an investor can buy/sell through the exchange is 1 unit.
The value of each unit will equal the price of 1 gram of gold.
This is the second Gold ETF being launched and having reviewed both, we find an

important common denominator across the two funds. Both the ETFs have high entry

loads (2.50% for UTI-Gold ETF and 1.50% for Gold Benchmark Exchange Traded

Scheme) during the NFO period. The high load makes Gold ETFs expensive investment

propositions and for a commodity, this could impact returns adversely. That is why we

maintain that investors are better off investing in Gold ETFs after the NFO period when it

is listed on the stock exchange. If onebuy the Gold ETF on the exchange, onehave to pay

the broker's commission (i.e. approximately 0.50% of the transaction value, although it

could vary depending on your relationship with the broker), which is a lot lower than the

entry load during the NFO period.

With regards to tax implications, investors must note that Gold ETFs are treated as debt

funds. Hence, tax incidence on sale of UTI-Gold ETF will be similar to that of debt

funds. This means that tax on long-term capital gains is lower of 10% without indexation

and 20% with indexation. Short-term capital gains will be added to income and taxed at

the marginal income tax rate.

While gold has considerable utility in a portfolio from a diversification. Over 17 years, it

has returned only around 8.60% CAGR-Compounded Annualised Growth Rate, which is

very modest performance.

Portfolio Strategy:

The fund is mandated to invest between 90%-100% of net assets in physical gold;
remaining 10% of the assets can be invested in debt and money market instruments

Instruments Allocation Range

Gold bullion 90% - 100%
Debt and money market instruments 0% - 10%

Uti Top 200 Fund:

Investment Objective:
The investment objective is to generate long-term capital appreciation from a portfolio of
equity and equity-linked instruments. The investment portfolio for equity and equity-
linked instruments will be primarily drawn from the companies in the BSE 200 Index.
Further, the Scheme may also invest in listed companies that would qualify to be in the
top 200 by market capitalization on the BSE even though they may not be listed on the
BSE This includes participation in large IPO where in the market capitalization of the
company based on issue price would make the company a part of the top 200 companies
listed on the BSE based on market capitalization

Basic Scheme Information:

Nature of Scheme. Open Ended Equity Growth Scheme
Inception Date. Oct 11, 1996
Option/Plan Dividend Plan, Growth Plan,
Entry Load. 1) In respect of each purchase of Units less than Rs.5crore
(As a % of the Applicable in value, an Entry Load of 2.25% is payable.
NAV) 2) In respect of each purchase / switch-in of Units equal to
or great than Rs.5crore in value, no Entry Load is payable.
Exit Load Nil
Minimum Application Rs.5000 and in multiples of Rs.100 thereof to open an
Amount. account / folio.Additional purchases is Rs. 1000 and in
multiples of Rs. 100 thereof.
Lock-In-Period. Nil
Net Asset Value Periodicity.Every Business Day.
Redemption Proceeds. Normally dispatched within 3 Days
Investment Pattern:

The asset allocation under the Scheme will be as follows:

Sr.No Asset Type (% Of portfolio) Risk profile
.
1 Equities and Equity Up to 100% (including use of Medium to
Related Instruments derivatives for hedging and other uses High
as permitted by prevailing SEBI
Regulations)
2 Debt and Money Balance in Debt and Money Market Low to
Market Instruments Instruments Medium

*
Investment in Securities debt, if undertaken, would not exceed 20% of the net assets of
the scheme.

The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such as
Futures and Options and such other derivative instruments as may be introduced from
time to time for the purpose of hedging and portfolio balancing and other uses as may be
permitted under the regulations and guidelines.

The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in
overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations
from time to time.

Subject to the Regulations and the applicable guidelines, the Scheme may, engage in
Stock Lending activities. Also refer to Section on Stock Lending by the Fund.

If the investment in equities and related instruments falls below 65% of the portfolio of
the Scheme at any point in time, it would be endeavored to review and rebalance the
composition.

Notwithstanding anything stated above, subject to the regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market
conditions, market opportunities, applicable regulations and political and economic
factors. It may be clearly understood that the percentages stated above are only indicative
and are not absolute and that they can vary substantially depending upon the perception
of the AMC, the intention being at all times to seek to protect the NAV of the scheme.
Such changes will be for short term and defensive considerations.

The Trustee may from time to time at their absolute discretion review and modify the
strategy, provided such modification is in accordance with the Regulations or in the event
of a discontinuation of or change in the compilation or the constituents of the BSE

200 Index Provided further and subject to the above, any change in the asset allocation
affecting the investment profile of the Scheme and amounting to a change in the
Fundamental Attributes of the Scheme shall be effected in accordance with sub-
regulation (15A) of regulation 18 of SEBI regulations.

Investment Strategy And Risk Control

The investment strategy of primarily restricting the equity portfolio to the BSE 200 Index
scripts is intended to reduce risks while maintaining steady growth. Stock specific risk
will be minimized by investing only in those companies / industries that have been
thoroughly researched by the investment manager's research team. Risk will also be
reduced through a diversification of the portfolio.

UTI Power Fund

Type Open-ended Growth Fund

Investment Pattern Equity and Equity related securities including non-convertible
portion of convertible debentures - Up to 95% and at least 5% in
Debt and Money Market securities.
Fund Objective To generate capital appreciation by actively investing in equity/
equity related securities. .
Investment horizon Suitable for investors seeking long-term capital appreciation
through investments in equity and equity related securities.
Net Asset Value Calculated and Declared on every Business Day.
Business Day A day other than (1) Saturday and Sunday or (2) a day on which the
Stock Exchange, Mumbai and National Stock Exchange are

closed whether or not the Banks in Mumbai are open. (3) A day on
which the Sale and Redemption of Units is suspended by the
Trustee/AMC. However, the AMC reserves the right to declare any
day as a non-business day at any of its locations at its sole
discretion.
Option Cumulative and Dividend
 Application Amt. Rs.5, 000/- (plus in multiples of Re. 1).
Portfolio Disclosures Quarterly
1. For investments of less than Rs.5Crores: Entry load at
Entry Load 2.25% of applicable NAV

2.For investments of Rs.5cores and Above: Nil

Exit Load Nil

RedemptionCheques Generally Within 3 business day for Specified RBI locations
Issued and additional 3 Business Days for Non-RBI locations
Min Redemption Amt. Rs.500/-
Cut off time 3.00p.m
SIP Monthly: Minimum Rs.1000 + 5 post-dated cheques for a
minimum of Rs.1000 each. Quarterly: NA
Tax Benefits Capital Gains Tax and Indexation benefits
Nomination Facility Available
Mode of Holding Single, Joint or Anyone or Survivor
Recurring Expenses Investment Management Expenses: 1.25%, Other recurring
expenses: 1.25%, Total: 2.50%
Fund Managers Nilesh Shah Associate of Institute of Chartered Accountants,
B.Com, Grad C.W.A Over 13 Years experience in fund and
Investment management

Investment Philosophy :

UTI Mutual Fund’s investment philosophy is to deliver consistent and stable returns in
the medium to long term with a fairly lower volatility of fund returns compared to the
broad market. It believes in having a balanced and well-diversified portfolio for all the
funds and a rigorous in-house research based approach to all its investments. It is
committed to adopt and maintain good fund management practices and a process based
investment management.
UTI Mutual Fund follows an investment approach of giving as equal an importance to
asset allocation and sectoral allocation, as is given to security selection while managing
any fund. It combines top-down and bottom-up approaches to enable the portfolios/funds
to adapt to different market conditions so as to prevent missing an investment
opportunity.
In terms of its funds performance, UTI Mutual Fund aims to consistently remain in the
top quartile vis-à-vis the funds in the peer group.

Liquid Funds Category UTI - Money Market Fund:

An open-ended pure debt liquid plan, seeking to provide highest possible current income,
by investing in a divesified portfolio of short-term money market securities

UTI - Floating Rate Fund:

To generate regular income through investment in a portfolio comprising substantially of

floating rate debt / money market instruments and fixed rate debt / money market
instruments

UTI - Liquid Fund - Cash Plan:

The scheme seeks to generate steady and reasonable income with low risk and high level
of liquidity from a portfolio of money market securities and high quality debt.

Income Funds Category:

UTI - G-Sec Fund - Investment Plan:

An open-end Gilt-Fund with the objective to invest only in Central Government securities
including call money, treasury bills and repos of varying maturities with a view to
generate credit risk free return.

UTI - G-Sec Fund - Short Term Plan:

An open-end Gilt-Fund with the objective to invest only in Central Government securities
including call money, overnment securities including call money, treasury bills and repos
of varying maturities with a view to generate credit risk free return

UTI - GILT Advantage Fund - LTP:

To generate credit risk-free return through investments in sovereign securities issued by

the Central and / or a State Government. LTP

UTI - Variable Investment Scheme:

An open ended debt oriented fund with 100% investment in Debt/G-sec. Investment can
be made in the name of the children upto the age of 15 years

UTI - Bond Advantage Fund – LTP:

It aims to generate attractive returns consistent with capital preservation and liquidity...

UTI - Monthly Income Scheme:

An open-ended debt oriented fund investing a minimum of 90% in Debt and G-Sec and a
maximum of 10% in equity instruments. The fund aims to distribute income periodically.
Best suited to the investors...

UTI - Liquid Fund - Short Term Plan:

The scheme seeks to generate steady and reasonable income with low risk and high level
of liquidity from a portfolio of money market securities and high quality debt.

UTI - MIS - Advantage Plan:

To generate regular income through investments in fixed income securities and capital
appreciation / dividend income through investment of a portion of net assets of the
scheme in equity and equity related instruments so as to endeavor to make periodic
income distribution to Unit holders.

UTI - Bond Fund:

Open-end 100% pure debt fund, which invests in rated corporate debt papers and
government securities with relatively low risk and easy liquidity.

UTI - Capital Protection Oriented Scheme:

The scheme will invest in a portfolio predominantly of fixed income securities that are
maturing in line with duration of the respective plans. Each Plan will have a separate
portfolio. The debt component of the portfolio structure shall have the highest investment
grade rating. The equity components of the scheme will mainly focus on those companies
/ stocks that have potential to appreciate in the medium to long run.

Asset Allocation Funds Category:

UTI - Variable Investment Scheme:

The UTI- Variable Investment Scheme is an open-ended scheme with dynamic allocation
between equity and debt classes.
Index Funds Category:

UTI - Master Index Fund:

UTI MIF is an open-ended passive fund with the primary investment objective to invest
in securities of companies comprising the BSE sensex in the same weightage as these
companies have in BSE sensex.

UTI - Index Select Fund:

An open-ended equity fund with the objective to invest in select stocks of the BSE
Sensex and the S & P CNX Nifty. The fund does not replicate any of the indices but aims
to attain performance better than the performance of the indices.

UTI - Nifty Index Fund:

UTI NIF is an open-ended passive fund with the objective to invest in securities of
companies comprising of the S&P CNX Nifty in the same weightage as they have in S&P
CNX Nifty.

UTI - Sunder:

The objective of the scheme is to provide investment returns that, before expenses,
closely correspond to the performance and yield of the basket of securities underlying the
S&P CNX NIFTY Index.

Equity Funds Category:

UTI - Equity Tax Saving Plan:

An open-ended equity fund investing a minimum of 80% in equity and equity related
instruments. It aims at enabling members to avail tax rebate under Section 88 of the IT
Act and provide them with the benefits of growth
UTI – MEPUS:

The scheme primarily aims at securing for the investors capital appreciation by investing
the funds of the scheme in equity shares of companies with good growth prospects.

UTI - Mastreshare unit Scheme:

An open-end equity fund aiming to provide benefit of capital appreciation and income
distribution through investment in equity.

UTI - Master Plus Unit Scheme:

An open-ended equity fund with an objective of long-term capital appreciation through

investments in equities and equity related instruments, convertible debentures, derivatives
in India and also in overseas markets.

UTI - Dynamic Equity Fund:

Capital appreciation by primarily investing in equity and equity related instruments.

UTI - Opportunities Fund:

This scheme seeks to generate capital appreciation and/or income distribution by

investing the funds of the scheme in equity shares and equity-related instruments

UTI - Mastergain Unit Scheme:

Mastergain is open-ended equity scheme with an objective of investing at least 80% of its
funds in equity and equity related instrument with medium to high risk profile and upto
20% in debt and money market instruments with low to medium risk profile.

UTI - Growth and Value Fund:

To seek capital appreciation through opportunities arising out of listed growth and
undervalued stocks.

UTI - Petro Fund:

An open-ended fund which invests exclusively in the equities of the Petro Sector
companies. One of the Growth Sectors Funds aiming to provide growth of capital over a
period of time as well as to make income distribution from
investment in stocks of Petro Sector.

UTI - Pharma and Healthcare Fund:

An open-ended fund which exclusively invests in the equities of the Pharma and
Healthcare sector companies. This fund is one of the growth sector funds aiming to invest
in companies engaged in business of manufacturing and marketing of bulk drug,
formulations and healthcare products and services.

UTI - Software Fund:

An open-ended fund which invests exclusively in the equities of the Software Sector
companies. One of the growth sectors funds aiming to invest in equity shares of
companies belonging to information technology sector to provide returns to investors
through capital growth as well as through regular income distribution.

UTI - Auto Sector Fund:

An open-ended equity fund with the objective to provide Capital appreciation through
investments in the stocks of the companies engaged in the automobile and auto-ancillary
industry.

UTI - Banking Sector Fund:

An open-ended equity fund with the objective to provide capital appreciation through
investments in the stocks of the companies/institutions engaged in the banking and
financial services activities.

UTI - Master Growth:

An open-ended equity fund for investment in equity shares, convertible and non-
convertible debentures and other capital and money market instruments with a provision
to invest upto 50% of its corpus in PSU’s equities and equity related products. The fund
aims to provide unit holders capital appreciation and income distribution.

UTI - Master Value Fund:

An open-ended equity fund investing in stocks which are currently under valued to their
future earning potential and carry medium risk profile to provide 'Capital Appreciation'

UTI - MNC Fund:

An open-ended equity fund with the objective to invest predominantly in the equity
shares of multinational companies in diverse sectors such as FMCG, Pharmaceutical,
Engineering etc.

UTI - Brand Vlue Fund:

An open-ended debt oriented fund investing a minimum of 90% of its exclusively in the
equities of companies having strong products or corporate brands to provide investors
benefits of capital appreciation.

UTI - Services Sector Fund:

An open-ended fund which invests in the equities of the Services Sector companies of the
country. One of the growth sector funds aiming to provide growth of capital over a period
of time as well as to make income distribution by investing the funds in stocks of
companies engaged in service sector such as banking, finance, insurance, etc.

UTI - Large Cap Fund:

An open-ended equity fund with the objective to provide capital appreciation through
investment in companies from the universe of top 50 companies in terms of market
capitalization

UTI - Mid Cap Fund:

An open-ended equity fund with the objective to provide ‘Capital appreciation’ by

investing primarily in mid caps stocks.

UTI - Infrastructure Fund:

An open-ended equity fund with the objective to provide Capital appreciation through
investing in the stocks of the companies engaged in the sectors like Metals, Building
materials, oil and gas, power, chemicals, engineering etc. The fund will invest in the
stocks of the companies which form part of Basic Industries.

UTI - PSU Fund:

An open-ended equity fund with the objective to provide Capital appreciation through
investing in the stocks of the companies where the State/Central Govt owns the majority
of the holding or management control is vested with State/Central Govt.

UTI - India Advantage Equity Fund:

Capital appreciation by investing in listed companies that are / have potential to emerge
as global players in their respective sectors.

UTI - Dividend Yield Fund:

UTI Dividend Yield Fund is an open-ended equity orientedscheme, which endeavours to

provide medium to long termcapital gains and/or dividend distribution by investing
predominantly in equity and equity related instruments thatoffer a high dividend yield.

UTI - Leadership Equity Fund:

This scheme seeks to generate capital appreciation and/or income distribution by

investing the funds of the scheme in stocks that are "Leaders" in their respective
industries/sectors/sub-sector.

UTI - Contra Fund:

The fund aims to provide long-term capital appreciation/dividend distribution through

investments in listed equities and equity-related instruments. The Fund's investment
policies are based on insights from behavioral finance.

UTI - Spread Fund:

UTI Spread funds a market-neutral equity fund with the returns and safety of debt. A fund
that takes advantage of arbitrage opportunities between the spot and futures markets. The
fund where returns are not linked to the rise or fall of equity markets.

UTI - Wealth Builder Fund:

The objective of the scheme is to achieve long term capital appreciation by investing
predominantly in a diversified portfolio of equity and equity related instruments.

UTI - Long-Term Advantage Fund:

The investment objective of the scheme is to provide medium to long term capital
appreciation alongwith income tax benefit.

UTI - Balanced Fund:

An open-ended balance fund investing 40% to 60% in equality related securities and the
balance in debt (fixed income securities) with a view to generate regular income together
with capital appreciation

UTI - US 2002:

An Open-ended balance fund. The scheme aims at providing income distribution/

cumulation of income and capital appreciation over a long term from a prudent portfolio
mix of equity and fixed income securities.

UTI - Mahila Unit Scheme:

An open-ended scheme with a minimum 70% investment in Debt/G-Sec and a maximum

30% investment in equity. The fund is designed to provide an enabler to adult female
persons in pooling their own savings gifts into an investment vehicle so as to get periodic
cash flow near to the time of any chosen festival/ occasion or to allow income/ gains
redeployed in the scheme and repurchase units partially or fully as and when desired.

UTI - Childrens Career Plan (Balanced):

An open-ended debt oriented fund with investment in Debt/G-Sec of minimum 60% and
a maximum of 40% in Equity. Investment can be made in the name of the children upto
the age of 15 years so as to provide them, after they attain the age of 18 years, a means to
receive scholarship to meet the cost of higher education and/or to help them in setting up
a profession, practice or business or enabling them to set up a home or finance the cost of
other social obligation.

UTI - Retirement Benefit Pension Fund:

An open-ended balanced fund with a maximum equity allocation of 40% and the balance
in debt. This ensures to provide pension to investors particularly self-employed persons
after they attain age of 58 years, in the form of periodical cash flow upto the extent of
repurchase value of their holding through systematic withdrawal plan.

UTI – CRTS:

This is an open-end income oriented scheme. The scheme aims at catering to the
investment needs of charitable, religious, educational trusts and similar institutions to
provide them an investment vehicle to avail of tax exemption and also to have regular
income.

UTI – ULIP:

An open-ended balanced fund with an objective of investing not more than 40% of the
funds in equity and equity related instruments and balance in debt and money market
instruments with low to medium risk profile.

RISK FACTOR:

Risk Factors

Mutual Funds and securities investments are subject to market risks and there can be no
assurance or guarantee that the Schemes objectives will be achieved. As with any
investment in securities, the Net Asset Value of Units issued under the Schemes may go
up or down depending on the various factors and forces affecting the capital market. Past
performance of the Sponsors/ AMC/ Mutual Fund/ Schemes and its affiliates do not
indicate the future performance of the Schemes of the Mutual Fund. The Sponsors are not
responsible or liable for any loss or shortfall resulting from the operations of the Schemes
beyond their contribution of Rs.10,000/- each made by them towards setting of the
Mutual Fund The Names of the Schemes do not in any manner indicate either the quality
of the Schemes or their future prospects and returns. Investors in the Schemes are not
being offered any guarantee / assured returns. Please read the Offer Documents carefully
before investing.

Statutory Details

In terms of The Unit Trust of India (Transfer of Undertaking and Repeal) Act 2002
(“Act”), the assets and liabilities of the erstwhile Unit Trust of India have been bifurcated
into two parts the specified undertaking and the specified company. The Administrator of
the Specified Undertaking of The Unit Trust of India comprises of US 64 and the assured
return schemes (most of which have since been converted into tax free bonds, the present
investment is guaranteed by the Govt. of India) . The Specified Company has been set up
as a mutual fund viz. UTI MF, comprising of all net asset value based schemes. UTI MF
has been structured in accordance with SEBI (Mutual Funds) Regulations, 1996 The
mutual fund was registered with SEBI on January 14, 2003 under Registration Code
MF/048/03/01.

ULIPs: A comparison

Birla ICICI- HDFC SBI Life Max New UTI

SunLife Prudential Standard (Unit Plus York Life Balanced
(Flexi Save (Lifetime II) Life (Unit Regular) (Life Maker Market
 Plus linked Endowment Return
Endowment endowment Plan) Plan)
Plan) plan)
ULIP FUND Enhancer Maximiser II Growth Equity Growth fund, Equity
OPTIONS fund, (Growth), fund, fund, Bond Balanced fund,
Builder Balancer II Balanced fund, fund, Growth
fund, (Balanced), fund, Growth Conservative fund,
Protector Protector II Defensive fund, fund, Secure Balanced
fund (Income), fund, Secure Balanced fund fund,
Preserver fund, Liquid fund Capital
fund Secure fund
ALLOCATION Max. 35% Upto 100% 100% in upto 100% 20-70% in Upto 100%
TO EQUITIES in Enhancer in growth in Equity Growth fund; in Equity
fund; max. maximiser- fund; 30- fund; upto 10-40% fund; upto
20% in II; upto 40% 60% in 20% in Balanced 40% in
Builder in balancer- balanced Bond fund; fund; 0-15% Growth
fund; max. II; nil in fund; 15- 40-100% in in fund; upto
10% in Protector II 30% in Growth Conservative 20% in
Protector and defensive fund; 40- fund; NIL in Balanced
fund Preserver managed 60% in Secure fund fund; NIL
fund; nil in Balanced in Capital
secure fund Secure fund
managed
and liquid
fund
MINIMUM No min. 18,000 10,000 24,000 15,000 10,000
PREMIUM (RS) premium.
Minimum
Sum
assured: Rs
75,000 (for
adults).
MIN/MAX AGE 30 days -65 Min: 0 or 18. 18-60 7 years - 65 12 years - 60 30 days - 65
AT ENTRY (YRS) years Max: 35 or (subject to years years years
60 (depends plan type)
on level of
 sum assured)
HOW IS SUM Face Level I sum 5-20 times 5-20 times Level Min. sum
ASSURED amount plus assured: the regular the regular Insurance assured:
CALCULATED policy fund Annual premium premium Cover = upto age 12-
contribution amount amount Higher of 5 times
X a multiple. Sum assured annual
Level II sum or fund value. premium or
assured: sum Increasing Rs 500,000,
assured can insurance whichever is
be increased cover = Sum lower.
subject to assured plus Above age
certain fund value. 12- 5 times
conditions annual
premium.
Max. sum
assured:
upto age 12
- 500,000.
Above age
12: No limit
RIDERS Yes Yes Yes Yes Yes Yes
AVAILABLE
INITIAL YEARS' 29.9%-65% 12%-19% in 10%-27% in 10-25% in 25% in first 10-20% in
EXPENSES in first year. first year initial 2- the 1st year plus the first
5%-7.5% in (depends Years year. 3- 0.15%-0.25% year.
2nd and 3rd upon the (depends 7.5% in of sum (Depends on
years. annual upon the 2nd and assured as the policy
premium annual 3rd year. initial set-up tenure)
amount). 4% premium 3-5% in monthly
from 2nd-5th amount) 4th and 5th expenses.
year. 2% year. 20% in 2nd
from 6th- year.
10th year.
FUND 1% Maximiser 0.80% 1.5% for 0.90% to Equity fund
MANAGEMENT II- 1.5%; equity 1.25% of net and Growth
CHARGES balancer- fund. assets in the fund:
 1.0%; 1.35% for fund 1.75%;
protector II growth Balanced
and fund. fund and
preserver- 1.25% for Capital
0.75% balanced Secure
fund. 1% fund: 1.50%
for bond
fund.
EXPENSES 5% 1 1 2 Bid-Offer 5
AFTER INITIAL spread of 5%
YEARS (%) with 1% for
rounding of
the premium
on its
allocation to
the funds.
FIXED 22. Plus 60 15 60 50 40
MONTHLY annual
EXPENSES (RS) charges as
* applicable.
**
PARTIAL Yes Yes Yes Yes Yes Yes
WITHDRAWALS
ALLOWED
CHARGES ON 2 1 2.5% for 1 NIL. But 2
TOP-UPS (%) initial two value is
years. 1% subject to the
thereafter. bid-offer
spread.
SWITCH 2 free 5 free 4 free 2 free 1 free
CHARGES switches in a switches in a switches in switches per switch every
year. Rs 100 year. a year. Rs year. year. 1% of
for Company 100 per Company the amount
additional may charge switch may charge switched
switches upto 2% of thereafter. upto Rs 500 thereafter
thereafter. switched per switch (subject to
amt for thereafter min. Rs 100
 additional and max. Rs
switches 1,000).

1. Fixed monthly expenses for some companies are subject to inflation-based indexation
and may change in the future.

2. An annual charge of Rs. 2.88 per thousand face amount will be deducted in the first 10
years of the policy except in the second year where it will be Rs. 15.24 per thousand face
amount. From the 11th year onwards this annual charge will increase subject to a
maximum of 3.75% per year

3. Companies reserve the right to change their policies anytime in the future.

Performance of UTI Different Scheme:

14 1 3 6
Performance (%) as on Nov 21, 2006 Date 1 year
days month months months
Nov 21,
Unit Scheme 2002 - Growth 0.29 1.4 7.14 7.47 26.47
2006
Nov 21,
Unit Scheme 2002 - Growth 0.29 1.4 7.14 7.47 26.47
2006
Unit Scheme 2002 - Income Nov 21, 0.29 1.4 7.05 7.47 26.47
 2006
May 30,
Unit Scheme 64 7.97 - 7.08 8.88 8.51
2003
Mar 30,
UTI Balanced Fund - Dividend -6.93 -10.33 -15.44 -11.18 -5.8
2007
Mar 30,
UTI Balanced Fund - Growth 3.43 -0.3 -6.02 -1.3 4.71
2007
Mar 30,
UTI Childrens Career Balanced Plan 1.05 -0.4 -3.44 -1.28 6.28
2007
Nov 17,
UTI GUP 94 1.29 2.5 8.61 12.61 12.3
2004
Mar 30,
UTI Mahila Unit Scheme 2.34 1.43 0.14 4.04 17.2
2007
Mar 30,
UTI ULIP 2.4 1.08 -0.92 1.57 2.36
2007
Average performance of similar category funds 2.01 0.17 -1.95 6.06 13.15
NSE Nifty 2.64 -1.98 -0.26 8.94 18.91
Performance Comparison Of Selected Schemes

14 1 3 6
Performance (%) as on Mar 30, 2007 Date 1 year
days month months months
S&P CNX NIFTY UTI National Mar 30,
6.01 2.25 -3.12 7.37 13.18
Depository Receipts Scheme 2007
UTI Capital Protection Oriented Scheme- Mar 30,
0.67 -0.13 - - -
Series I - 3 Yrs - Div 2007
Mar 30,
UTI Wealth Builder Fund - Growth 6.05 1.8 -2.68 - -
2007
UTI Capital Protection Oriented Scheme- Mar 30,
0.67 -0.13 - - -
Series I - 3 Yrs - Div 2007
UTI Capital Protection Oriented Scheme- Mar 30,
0.67 -0.13 - - -
Series I - 3 Yrs - Gth 2007
UTI Capital Protection Oriented Scheme- Mar 30,
0.83 -0.33 - - -
Series I - 5 Yrs - Div 2007
UTI Capital Protection Oriented Scheme- Mar 30, 0.83 -0.33 - - -
Series I - 5 Yrs - Gth 2007
Mar 30,
UTI Contra Fund - Dividend 5.96 1.23 -7.17 -6.79 -
2007
Mar 30,
UTI Contra Fund - Growth 5.96 1.23 -7.17 -6.79 -
2007
Mar 30,
UTI Dividend Yield Fund - Dividend 5.71 1.82 -0.26 3.5 5.87
2007
Mar 30,
UTI Dividend Yield Fund - Growth 5.68 1.76 -0.26 3.44 6.26
2007
Mar 30,
UTI Dynamic Equity Fund - Dividend 1.64 -3.62 -9.56 3.65 -8.65
2007
Mar 30,
UTI Dynamic Equity Fund - Growth 1.67 -3.59 -9.53 3.7 -8.7
2007
Mar 30,
UTI Equity Fund - Dividend 4.99 -0.28 -5.77 -0.28 -3.91
2007
Mar 30,
UTI Equity Fund - Growth 4.99 -0.29 -5.71 -0.39 -4.12
2007
Mar 30,
UTI Equity Tax Savings Plan - Dividend 4.92 -0.38 -9.07 -0.29 -5.35
2007
Mar 30,
UTI Equity Tax Savings Plan - Growth 4.98 -0.39 -9.05 -0.25 -5.33
2007
Jul 15,
UTI Grandmaster - 1993 2.43 3.91 14.54 18.8 54.85
2005
UTI Growth & Value Fund - Annual Mar 30,
4.83 0.05 -5.22 7.05 1
Dividend 2007
Feb 1,
UTI Growth & Value Fund - Bonus 5.54 -2.3 15.15 27.92 -
2005
Mar 30,
UTI Growth & Value Fund - Growth 4.84 0.05 -5.27 6.97 0.98
2007
UTI Growth & Value Fund - Semi Annual Mar 30,
4.88 0.06 -5.21 6.98 1.06
Dividend 2007
UTI Growth Sector Fund - Brand Value - Mar 30,
5.18 0.67 -5.29 0.21 -0.71
Dividend 2007
UTI Growth Sector Fund - Brand Value - Mar 30, 5.11 0.67 -5.42 0.2 -0.7
Growth 2007
UTI Growth Sector Fund - Petro - Mar 30,
4.14 -0.06 -3.18 -2.12 -1.82
Dividend 2007
Mar 30,
UTI Growth Sector Fund - Petro - Growth 4.16 -0.12 -3.17 -2.13 -1.86
2007
UTI Growth Sector Fund - Pharma and Mar 30,
5.82 3.05 -3.32 0.42 -6.84
Healthcare - Dividend 2007
UTI Growth Sector Fund - Pharma and Mar 30,
5.87 3.07 -3.25 0.47 -6.82
Healthcare - Growth 2007
UTI Growth Sector Fund - Services - Mar 30,
3.68 1.35 -5.17 13.46 14.63
Dividend 2007
UTI Growth Sector Fund - Services - Mar 30,
3.78 1.45 -4.94 13.83 15.03
Growth 2007
UTI Growth Sector Fund - Software - Mar 30,
0.89 0.31 -1.56 24.34 30.57
Dividend 2007
UTI Growth Sector Fund - Software - Mar 30,
0.86 0.37 -1.46 24.44 30.63
Growth 2007
UTI Index Advantage Fund - BSE Sensex Jun 30,
4.3 8.3 12.85 10.83 48.25
Plan 2005
Jun 30,
UTI Index Advantage Fund - Nifty Plan 4.75 7.81 12.2 8.92 48.44
2005
Mar 30,
UTI Index Select Fund - Dividend 5.79 1.75 -5.03 3.27 12.59
2007
Mar 30,
UTI Index Select Fund - Growth 5.78 1.77 -5.02 3.25 12.69
2007
UTI India Advantage Equity Fund - Mar 30,
3.14 -2.83 -4.94 13.53 6.91
Dividend 2007
UTI India Advantage Equity Fund - Mar 30,
3.14 -2.83 -4.94 13.53 6.91
Growth 2007
Mar 30,
UTI Leadership Equity Fund - Dividend 5.79 0.43 -5.26 7.34 10.17
2007
Mar 30,
UTI Leadership Equity Fund - Growth 5.7 0.34 -5.34 7.25 10.08
2007
UTI Long Term Advantage Fund - Apr 1, NA NA NA NA NA
Dividend 2007
UTI Long Term Advantage Fund - Apr 1,
NA NA NA NA NA
Growth 2007
Mar 28,
UTI MEP 93 -4.22 -5.55 1.6 -4.99
2003
Mar 28,
UTI MEP 94 -5.49 -7.15 3.39 -5.26
2003
Mar 28,
UTI MEP 95 -5.49 -7.96 -2.06 -9.51
2003
Mar 28,
UTI MEP 96 -3.5 -5.52 3.77 -4.43
2003
Mar 28,
UTI MEP 97 -3.51 -4.92 4.73 -2.89
2003
Jul 15,
UTI MEP 98 2.04 3.47 7.53 11.24 45.91
2005
Jul 15,
UTI MEP 99 1.63 3.85 7.56 12.31 46.63
2005
Mar 30,
UTI-MEPUS 5.98 0.35 -7.6 0.92 3.54
2007
Mar 30,
UTI Master Growth - Dividend 5.26 1.26 -6.29 4.06 5.4
2007
Mar 30,
UTI Master Growth - Growth 5.28 1.29 -6.25 4.12 5.49
2007
Mar 30,
UTI Master Index Fund - Dividend 5.18 1.08 -5.15 4.82 16.02
2007
Mar 30,
UTI Master Index Fund - Growth 5.18 1.08 -5.15 4.82 16.02
2007
Mar 30,
UTI Master Value Fund - Dividend 2.55 -2.91 -11.09 -2.85 -7.37
2007
Mar 30,
UTI Master Value Fund - Growth 2.53 -2.93 -11.1 -2.86 -7.24
2007
UTI Masterplus Unit Scheme 91 - Mar 30,
6.22 0.59 -6.86 6.08 10.8
Dividend 2007
UTI Masterplus Unit Scheme 91 - Growth Mar 30, 6.19 0.65 -6.93 6.03 10.21
 2007
Mar 30,
UTI MNC Fund - Dividend 3.79 -1.09 -5.96 -0.66 -9.81
2007
Mar 30,
UTI MNC Fund - Growth 3.81 -1.06 -5.93 -0.67 -9.83
2007
Mar 30,
UTI Nifty Fund - Dividend 6.01 2.19 -3.29 7 12.77
2007
Mar 30,
UTI Nifty Fund - Growth 6.01 2.19 -3.29 7 12.78
2007
Mar 30,
UTI Opportunities Fund - Dividend 6.13 0.17 -5.31 -6.15 -11.97
2007
Mar 30,
UTI Opportunities Fund - Growth 6.19 0.15 -5.3 -6.05 -11.82
2007
Jul 15,
UTI Primary Equity Fund 2.06 2.72 7.59 9.41 39.75
2005
Mar 30,
UTI Spread Fund - Dividend 0.44 1 2.62 4.54 -
2007
Mar 30,
UTI Spread Fund - Growth 0.44 1 2.62 4.54 -
2007
UTI Thematic Auto Sector Fund - Mar 30,
1.94 -5.34 -13.18 -11.54 -11.54
Dividend 2007
Mar 30,
UTI Thematic Auto Sector Fund - Growth 2.03 -5.27 -13.09 -11.38 -11.42
2007
UTI Thematic Banking Sector Fund - Mar 30,
6.78 1.53 -5.32 9.46 23.99
Dividend 2007
UTI Thematic Banking Sector Fund - Mar 30,
6.84 1.6 -5.25 9.64 24.16
Growth 2007
UTI Thematic Infrastructure Fund - Mar 30,
5.62 0 -9.01 8.39 12.48
Dividend 2007
UTI Thematic Infrastructure Fund - Mar 30,
5.61 0.04 -8.97 8.47 12.66
Growth 2007
Mar 30,
UTI Thematic Large Cap Fund - Dividend 4.44 0.98 -5.73 0.73 2.68
2007
UTI Thematic Large Cap Fund - Growth Mar 30, 4.49 0.96 -5.7 0.69 2.95
 2007
Mar 30,
UTI Thematic Mid Cap Fund - Dividend 2.63 -3.78 -11.9 -0.77 18.06
2007
Mar 30,
UTI Thematic Mid Cap Fund - Growth 2.64 -3.78 -11.86 -0.7 18.08
2007
Mar 30,
UTI Thematic PSU Fund - Dividend 6.95 1.92 -3.18 1.71 -3.62
2007
Mar 30,
UTI Thematic PSU Fund - Growth 6.98 2 -3.07 1.81 -3.37
2007
Mar 30,
UTI Mastershare - Dividend 5.18 0.84 -4.76 5.24 4.83
2007
Mar 30,
UTI Mastershare - Growth 5.19 0.86 -4.73 5.23 4.69
2007
Jul 15,
UTI US 92 3.02 4.12 8.26 12.83 49.45
2005
UTI Variable Investment Scheme - Mar 30,
3.11 0.92 -1.84 1.28 4.14
Dividend 2007
UTI Variable Investment Scheme - Mar 30,
3.11 0.92 -1.84 1.28 4.14
Growth 2007

Mar 30,
UTI Wealth Builder Fund - Dividend 6.05 1.8 -2.68 - -
2007

Average performance of similar category funds 3.64 -0.26 -4.93 5.35 8.37
BSE Sensex 1.81 -2.54 -1.38 8.57 22.56
NSE Nifty 2.64 -1.98 -0.26 8.94 18.91
Lifex 2.9 -0.6 -2.11 -1.04 -1.06
Mindex 2.91 -1.02 9.15 25.65 38.13
Brandex 0.12 -4.1 -8.95 -12.37 -13.36
IBEX 0.08 0.21 -0.93 2.58 5.15
Performance Comparison Of Selected Schemes Of Different Mutual Funds:

Performance (%) Date 14 Days 1 Month 3 Month 6 Month 1 Year

Mar 30, 2007
ABN AMRO Mar 3.17 -2.24 -9.33 -7.29 -16.39
Dividend Yield 30,
Fund - Growth 200
7
ABN AMRO Mar 4.71 0.88 -7.37 6.15 6.15
Equity Fund - 30,
Dividend 200
7
ABN AMRO Mar 4.7 0.88 -7.39 6.16 6.07
Equity Fund - 30,
Growth 200
7
ABN AMRO Mar 3.51 -2.13 -10.38 4.94 NA
Future Leaders 30,
Fund - Dividend 200
7
ABN AMRO Mar 3.51 -2.13 -10.38 5.04 NA
Future Leaders 30,
Fund - Growth 200
7
ABN AMRO Mar 4.18 -0.53 -6.29 9.87 9.92
Opportunities 30,
Fund - Dividend 200
7
ABN AMRO Mar 4.18 -0.53 -6.28 9.87 9.93
Opportunities 30,
Fund - Growth 200
7
ABN AMRO Apr NA NA NA NA NA
Sustainable 1,
Development Fund 200
- Dividend 7
ABN AMRO Apr NA NA NA NA NA
Sustainable 1,
Development Fund 200
- Growth 7
ABN AMRO Tax Mar 2.56 -1.27 -13.81 1.94 -1.2
Advantage Plan - 30,
Dividend 200
7
ABN AMRO Tax Mar 2.45 -1.38 -13.91 1.82 -1.29
Advantage Plan - 30,
Growth 200
7
Bank BeES Mar 8.6 1.43 -12.53 -0.55 14.45
30,
200
7
Baroda Global Mar 5.31 0.5 -8.42 0.6 2.66
Fund - Dividend 30,
200
7
Baroda Global Mar 5.3 0.4 -8.41 0.7 2.87
Fund - Growth 30,
200
7
Birla Advantage Mar 3.2 -0.19 -4.92 5.65 5.92
Fund - Dividend 29,
200
7
Birla Advantage Mar 3.2 -0.19 -4.92 5.65 5.94
Fund - Growth 29,
200
7
Birla Dividend Mar 2.06 -0.86 -5.46 -3.59 -4.21
Yield Plus - 29,
Dividend 200
7
Birla Dividend Mar 2.06 -0.87 -5.44 -3.53 -4.16
Yield Plus - 29,
Growth 200
7
Birla Dividend Mar NA NA NA NA NA
Yield Plus - PF 29,
Plan - Dividend 200
7
Birla Dividend Mar NA NA NA NA NA
Yield Plus - PF 29,
Plan - Growth 200
7
Birla Equity Plan - Mar 2.67 -0.17 -6.19 2.53 6.8
Dividend 29,
200
7
Birla Equity Plan - Mar 2.69 -0.19 -6.28 NA NA
Growth 29,
200
7
Birla Index Fund - Mar 0.99 -1.77 -7.21 0.89 9.04
Dividend 29,
200
7
Birla Index Fund - Mar 3.12 0.3 -5.25 3.02 11.37
Growth 29,
200
7
Birla India Mar 3.78 1.72 0.33 10.56
GenNext Fund - 29,
Dividend 200 11.85
7

Birla India Mar 3.78 1.72 0.33 10.56 11.85

GenNext Fund - 29,
Growth 200
7
Birla India Mar 1.19 -1.34 -4.91 8.61 11.16
Opportunities 29,
Fund - Dividend 200
7
Birla India Mar 1.22 -1.31 -4.89 8.64 11.15
Opportunities 29,
Fund - Growth 200
 7
Birla Infrastructure Mar 2.2 -1.93 -7.77 3.53 7.42
Fund - Dividend 29,
200
7
Birla Infrastructure Mar 2.2 -1.93 -7.77 3.53 7.42
Fund - Growth 29,
200
7
Birla Long Term Mar 1.72 -2.53 -7.22 NA NA
Adv Fund - 29,
Dividend 200
7
Birla Long Term Mar 1.72 -2.53 -7.22 NA NA
Adv Fund - 29,
Growth 200
7
Birla Mid Cap Mar 1.28 -3.62 -7.9 2.61 6.56
Fund - Dividend 29,
200
7
Birla Mid Cap Mar 1.26 -3.62 -7.95 2.19 6.12
Fund - Growth 29,
200
7
Birla MNC Fund - Mar 1.95 -2.79 -6.42 1.07 -2.72
Dividend 29,
200
7

Birla MNC Fund - Mar 1.95 -2.79 -6.43 1.07 -2.7

Growth 29,
 200
7
Birla SunLife Mar 2.99 -1.79 -9.27 -0.95 0.01
Basic Industries - 29,
Dividend 200
7
Birla SunLife Mar 2.98 -1.79 -9.27 -0.96 0.51
Basic Industries - 29,
Growth 200
7
Birla SunLife Buy Mar 2.28 -1.71 -4.27 3.96 4.73
India Fund - 29,
Dividend 200
7
Birla SunLife Buy Mar 2.31 -1.73 -4.28 3.97 4.47
India Fund - 29,
Growth 200
7
Birla SunLife Mar 3.19 1.31 -4.41 9.04 13.29
Equity Fund - 29,
Dividend 200
7
Birla SunLife Mar 3.3 1.41 -4.3 9.16 13.59
Equity Fund - 29,
Growth 200
7
Birla SunLife Mar 4.44 2.68 -2.18 9.3 22.66
Frontline Equity 29,
Fund - Dividend 200
7

Birla SunLife Mar 4.41 2.66 -2.17 9.27 22.66

Frontline Equity 29,
Fund - Growth 200
7
Birla SunLife New Mar 0.65 -0.82 -0.18 22.37 30.76
Millennium - 29,
Dividend 200
7
Birla SunLife New Mar 0.71 -0.8 -0.15 22.39 31.01
Millennium - 29,
Growth 200
7
Birla SunLife Tax Mar 2.62 0.02 -5.01 7.33 12.58
Relief 96 29,
200
7
Birla Taxplan 98 Mar 1.5 -2.99 -7.6 -0.45 5.77
29,
200
7
Birla Top 100 Mar 3.61 0.26 -5.61 2.62 6.25
Fund - Dividend 29,
200
7
Birla Top 100 Mar 3.62 0.27 -5.58 2.65 6.27
Fund - Growth 29,
200
7
BOB Diversified Mar 7.58 3.18 -2.64 2 -0.84
Fund - Dividend 30,
200
7
BOB Diversified Mar 7.58 3.18 -2.64 2 -0.84
Fund - Growth 30,
200
7

BOB ELSS 96 Mar 3.47 -1.6 -7.34 2.75 2.53

30,
200
7
BOB ELSS 97 Mar 0.52 -9.09 -5.94 -0.4 -0.43
29,
200
7
BOB Growth Fund Mar 6 2.12 -6.16 1.6 1.16
- Dividend 30,
200
7
BOB Growth Fund Mar 6 2.13 -6.18 1.58 2.64
- Growth 30,
200
7
BOB NRI Fund - May 0.12 0.24 0.58 1.6 3.14
FAP - Dividend 5,
200
6
BOB NRI Fund - Aug 0.11 0.25 0.77 1.56 NA
FAP - Growth 18,
200
5
Can D MAT Mar -3.06 -10.43 -7.05 -3.26 -8.01
16,
200
7
Can Emerging Mar 3.79 -1.69 -10.36 -1.22 -7.55
Equities - Bonus 30,
200
7
Can Emerging Mar 3.77 -1.67 -10.35 -1.2 -7.52
Equities - 30,
Dividend 200
7

Can Emerging Mar 3.79 -1.69 -10.36 -1.22 -7.55

Equities - Growth 30,

200
7
Can Multicap Mar NA 0.83 NA NA NA
Fund - Dividend 30,
200
7
Can Multicap Mar NA 0.83 NA NA NA
Fund - Growth 30,
200
7
Canbonus Dec 3.05 8.75 23.9 57.5 26.44
21,
200
4
Canequity Mar 5.82 -0.45 -6.8 4.95 -14.13
Diversified - 30,
Bonus 200
7
Canequity Mar 5.85 -0.42 -6.75 4.99 -3.37
Diversified - 30,
Growth 200
 7
Canequity Mar 5.82 -0.45 -6.8 4.95 -3.46
Diversified - 30,
Income 200
7
Canequity Mar NA -28.91 -31.69 -20.13 -25.42
Taxsaver 30,
200
7
Canexpo - Growth Mar 4.14 2.29 -4.43 5.71 0.06
Plan 30,
200
7

Canexpo - Income Mar 4.16 2.3 -4.41 5.74 -0.03

Plan 30,
200
7
Canfortune 94 Mar 4.02 -0.74 -4.74 0.46 -1.15
30,
200
7
Canglobal Dec 4.31 8.8 20.17 47.79 41.49
21,
200
4
Cangrowth Plus Mar -2.16 -9.14 -3.89 3.84 2.04
16,
200
7
Canindex - Mar 5.92 2.08 -3.57 4.4 12.25
Dividend 30,
 200
7
Canindex - Mar 5.93 2.09 -3.52 4.63 12.5
Growth 30,
200
7
CanInfrastructure Mar 3.88 -2.14 -8.19 3.72 -0.08
Fund - Dividend 30,
200
7
CanInfrastructure Mar 3.87 -2.13 -8.2 3.96 0.16
Fund - Growth 30,
200
7
Canpep 94 Mar 0.82 0.91 14.51 NA NA
24,
200
4

Canpep 95 Dec NA NA 20.41 NA NA

21,
200
4
DBS Chola Contra Mar 6.31 0.65 -7.63 -2.36 3.36
Fund - Dividend 30,
200
7
DBS Chola Contra Mar 6.31 0.65 -7.63 -2.36 3.36
Fund - Growth 30,
200
7
DBS Chola Global Mar 2.7 -3.49 -11.36 -3.72 -8.63
Advantage Fund - 30,
Dividend 200
7
DBS Chola Global Mar 2.69 -3.42 -11.34 -3.71 -8.66
Advantage Fund - 30,
Growth 200
7
DBS Chola Mar 7 1.81 -7.68 3.51 10.97
Growth Fund - 30,
Qtly Div 200
7
DBS Chola Mar 6.97 1.81 -7.69 3.55 11.08
Growth Fund 30,
-Growth 200
7
DBS Chola Apr NA NA NA NA NA
Hedged Equity 1,
Fund - Dividend 200
7
DBS Chola Apr NA NA NA NA NA
Hedged Equity 1,
Fund - Growth 200
7
DBS Chola Mar 2.62 -2.89 -8.39 1.22 1.51
Midcap Fund - 30,
Dividend 200
7
DBS Chola Do- 2.65 -2.86 -8.36 1.24 1.29
Midcap Fund
DBS Chola Multi Mar 5.29 -0.36 -8.95 0.44 2.61
Cap Fund - 30,
Dividend 200
 7
DBS Chola Multi Mar 5.25 -0.35 -8.93 0.47 2.31
Cap Fund - 30,
Growth 200
7
DBS Chola Mar 6.75 2.17 -6.76 8.68 22.6
Opportunities 30,
Fund - Cumulative 200
7
DBS Chola Mar 6.78 2.18 -6.75 8.7 22.62
Opportunities 30,
Fund - Qtly Div 200
7
DBS Chola Mar 5.49 0.17 -7.88 3.1 5.07
Taxsaver Fund - 30,
Dividend 200
7
DBS Chola Mar 5.51 0.16 -7.88 3.1 5.07
Taxsaver Fund - 30,
Growth 200
7
DSP ML Equity Mar 3.74 0.21 -4.81 9.7 13.27
Fund 30,
200
7
DSP ML India Mar 5.39 0.3 -3.76 11.61 16.2
Tiger Fund - 30,
Dividend 200
7

DSP ML India Mar 5.41 0.31 -3.76 11.61 16.17

Tiger Fund - 30,
Growth 200
7
DSP ML Mar 5.08 0.02 -7.22 5.53 8.35
Opportunities 30,
Fund - Div 200
7
DSP ML Mar 5.08 0.02 -7.23 5.52 8.34
Opportunities 30,
Fund - Growth 200
7
DSP Merrill Mar 4.05 0.1 -5.3 NA NA
Lynch Small and 30,
Midcap Fund - 200
Dividend 7
DSP Merrill Mar 4.05 0.1 -5.3 NA NA
Lynch Small and 30,
Midcap Fund - 200
Growth 7
DSP Merrill Mar 4.08 0.16 -5.12 NA NA
Lynch Small and 30,
Midcap Fund - IP - 200
Dividend 7
DSP Merrill Mar 4.08 0.16 -5.12 NA NA
Lynch Small and 30,
Midcap Fund - IP - 200
Growth 7
DSP Merrill Mar 3.7 1 NA NA NA
Lynch Tax Saver 30,
Fund - Dividend 200
7
DSP Merrill Mar 3.7 1 NA NA NA
Lynch Tax Saver 30,
Fund - Growth 200
7

DSP ML Mar 1.26 1.73 7.41 39.18 39.64

Technology.com 30,
Fund - Dividend 200
7
DSP ML Mar 1.26 1.73 7.41 39.18 39.64
Technology.com 30,
Fund - Growth 200
7
DSP ML Top 100 Mar 4.27 1.2 -3.6 8.96 14.91
Equity Fund - 30,
Dividend 200
7
DSP ML Top 100 Mar 4.27 1.19 -3.61 8.94 14.93
Equity Fund - 30,
Growth 200
7
Dundee Taxsaver Mar 0.11 0.32 1.08 8.58 NA
Fund 31,
200
3
DWS Alpha Mar 5.53 0.42 -5.84 2.58 10.15
Equity Fund - 30,
Dividend 200
7
DWS Alpha Mar 5.55 0.46 -5.57 2.85 10.4
Equity Fund - 30,
Growth 200
7
DWS Investment Mar 4.49 -0.42 -6.79 4.63 10.42
Opportunity Fund 30,
- Dividend 200
7
DWS Investment Mar 4.53 -0.41 -6.8 4.63 10.25
Opportunity Fund 30,
- Growth 200
7

DWS Tax Saving Mar 4.57 -1.11 -8.18 0.54 -7.73

Fund - Dividend 30,
200
7
DWS Tax Saving Mar 4.57 -1.11 -8.18 0.54 -7.73
Fund - Growth 30,
200
7
Escorts Growth Mar 4.1 -0.65 -7.05 -1.48 -2.54
Plan - Dividend 30,
200
7
Escorts Growth Mar 4.12 -0.63 -7.04 -1.48 -2.81
Plan - Growth 30,
200
7
Escorts High Yield Mar 4.8 0.59 NA NA NA
Equity Plan - 30,
Bonus 200
7
Escorts High Yield Mar 4.8 0.59 NA NA NA
Equity Plan - 30,
Dividend 200
7
Escorts High Yield Mar 4.8 0.59 NA NA NA
Equity Plan - 30,
Growth 200
7
Escorts Tax Plan - Mar 3.99 0.55 -5.8 3.74 5.46
Dividend 30,
200
7
Escorts Tax Plan - Mar 3.99 0.55 -5.8 3.7 5.38
Growth 30,
200
7

Excel India Fund Mar 3.12 -2.73 -3.12 6.19 9.03

26,
200
7
Fidelity Equity Mar 4.75 1.76 -1.24 12.09 16.49
Fund - Dividend 30,
200
7
Fidelity Equity Mar 4.75 1.76 -1.23 12.09 16.5
Fund - Growth 30,
200
7
FF India Focus Jun 4.43 -12.33 -19.75 -0.91 26.62
Fund - USD 29,
200
6
Fidelity India Mar 5.11 1.28 -5.76 6.33
Special Situations 30,
Fund - Dividend 200
 7
Fidelity India Mar 5.11 1.28 -5.76 6.33
Special Situations 30,
Fund - Growth 200
7
Fidelity Tax Mar 4.75 1.16 -1.47 9.32 13.95
Advantage Fund - 30,
Dividend 200
7
Fidelity Tax Mar 4.75 1.16 -1.47 9.32 13.95
Advantage Fund - 30,
Growth 200
7
Franklin FMCG Mar 4.75 -2.19 -6.64 -8.2 -11.89
Fund - Dividend 30,
200
7

Franklin FMCG Mar 4.76 -2.22 -6.65 -8.2 -11.9

Fund - Growth 30,
200
7
Franklin India Mar 5.07 0.45 -6.64 4.7 10.07
Bluechip - 30,
Dividend 200
7
Franklin India Mar 5.07 0.47 -6.64 4.7 10.08
Bluechip - Growth 30,
200
7
Franklin India Mar 4.14 -0.29 -7.12 2.36 8.03
Flexi Cap Fund - 30,
Dividend 200
7
Franklin India Mar 4.21 -0.25 -7.08 2.41 8.06
Flexi Cap Fund - 30,
Growth 200
7
Franklin India Mar 4.52 0.14 -3.44 11.17 18.03
Growth Fund 30,
200
7
Franklin India Mar 5.17 0.89 -5.41 4.38 13.49
Index Fund - BSE 30,
Sensex Dividend 200
7
Franklin India Mar 5.17 0.89 -5.41 4.38 13.49
Index Fund - BSE 30,
Sensex Plan - 200
Growth 7
Franklin India Mar 5.99 2.11 -3.43 6.89 12.66
Index Fund - NSE 30,
Nifty Plan - 200
Dividend 7

Franklin India Mar 2.11 -3.43 6.89 12.66

Index Fund - NSE 30,
Nifty Plan - 200 5.99
Growth 7
Franklin India Mar 5.93 2.15 -3.48 6.66 12.25
Index Tax Fund 30,
200
7
Franklin India Mar 4.04 0.77 -8.79 4.7 14.47
Opportunity Fund 30,
- Dividend 200
7
Franklin India Mar 4.06 0.79 -8.75 4.74 14.65
Opportunity Fund 30,
- Growth 200
7
Franklin India Mar 1.9 -4.31 -13 1.31 -4.4
Prima Fund - 30,
Dividend 200
7
Franklin India Mar 1.92 -4.3 -12.99 1.3 -4.39
Prima Fund - 30,
Growth 200
7
Franklin India Mar 4.49 0.13 -3.43 11.05 17.91
Prima - Dividend 30,7
Franklin India Mar 4.49 0.14 -3.43 11.16 18.03
Prima Plus - 30,
Growth 200
7
Franklin India Mar 2.46 -2.15 -8 -3.93 -7.23
Smaller 30,
Companies Fund - 200
Dividend 7
Franklin India Mar 2.46 -2.15 -8 -3.93 -7.23
Smaller 30,
Companies Fund - 200
Growth 7
Franklin India Mar 4.35 0.63 -4.4 1.62 0.62
Taxshield - 30,
Dividend 200
 7
Franklin India Mar 4.37 0.63 -4.39 1.62 0.61
Taxshield - 30,
Growth 200
7
Franklin India Oct -0.89 2.12 14.55 0.44 37.82
Taxshield 95 15,
200
4
Franklin India Mar 2.02 8.2 19.07 26.07 60.81
Taxshield 96 31,
200
6
Franklin India Mar 5.77 4.99 -2.13 5.52 13.45
Taxshield 97 30,
200
7
Franklin India Mar 4.92 2.46 -1.23 8.97 13.23
Taxshield 98 30,
200
7
Franklin India Mar 4.35 3.07 -4.78 9.67 14.27
Taxshield 99 30,
200
7
Franklin Infotech Mar -0.16 0 -5.54 14.76 21.42
Fund - Dividend 30,
200
7

Franklin Infotech Mar -0.15 0 -5.52 14.79 21.4

Fund - Growth 30,
 200
7
Franklin Pharma Mar 5.78 3.44 -1.66 4.31 -3.35
Fund - Dividend 30,
200
7
Franklin Pharma Mar 5.75 3.39 -1.71 4.29 -3.37
Fund - Growth 30,
200
7
FT India AAF - Jul -0.59 1.22 -8.8 -5.44 22.36
Balanced Growth 16,
Plan - Dividend 200
4
FT India AAF - Jul -0.59 1.22 -8.8 -5.43 22.36
Balanced Growth 16,
Plan - Growth 200
4
FT India AAF - Jul -0.9 0.12 -4.89 -4.84 14.59
Conservative 16,
Growth Plan - 200
Dividend 4
FT India AAF - Jul -0.9 0.12 -4.89 -2.99 16.81
Conservative 16,
Growth Plan - 200
Growth 4
FT India AAF- Jul -0.02 0.42 -2 -3.16 7.11
Inflation Hedge 16,
Plan - Dividend 200
4
FT India AAF- Jul -0.02 0.42 -2 -1.61 8.82
Inflation Hedge 16,
Plan - Growth 200
4
FT India AAF - Jul -0.95 1.62 -13.2 -11.12 25.9
Steady Growth 16,
Plan - Dividend 200
4
FT India AAF - Jul -0.95 1.62 -13.2 -11.12 25.9
Steady Growth 16,
Plan - Growth 200
4
FT India AAF- Jul -0.92 2.64 -17.18 -15.14 27.78
Pure Growth Plan 16,
- Dividend 200
4
FT India AAF- Jul -0.92 2.64 -17.18 -15.14 27.78
Pure Growth Plan 16,
- Growth 200
4
FT India Index Mar -3.73 -1.69 -5.06 24.22 74.48
Fund - Nifty 26,
200
4
FT India Index Mar 0.81 -1.8 -3.41 25.5 71.2
Fund - Sensex 29,
200
4
FT India PE Ratio Jul 0.07 2.38 -12.08 -12.7 31.73
Fund - Growth 16,
200
4
GIC Growth Plus Mar NA -0.14 -1.11 NA NA
31,
200
3

GIC Taxsaver 95 Feb -1.46 NA NA NA NA

23,
200
5
GIC Taxsaver Mar 0 NA 1.05 15.27 NA
Growth Plan 24,
200
4
HDFC Capital Mar 5.79 -1.57 -4.55 5.28 1.36
Builder Fund - 30,
Dividend 200
7
HDFC Capital Mar 5.79 -1.57 -4.54 5.28 1.35
Builder Fund - 30,
Growth 200
7
HDFC Core & Mar 5.08 0.25 -7.21 1.07 1.45
Satellite Fund - 30,
Dividend 200
7
HDFC Core & Mar 5.07 0.25 -7.2 1.09 1.25
Satellite Fund - 30,
Growth 200
7
HDFC Equity Mar 4.35 1.32 -1.58 6.93 12.61
Fund - Dividend 30,
200
 7
HDFC Equity Mar 4.35 0.97 -1.91 6.57 12.24
Fund - Growth 30,
200
7
HDFC Growth Mar 5.9 0.93 -6.1 4.67 11.05
Fund - Dividend 30,
200
7

HDFC Growth Mar 5.9 0.92 -6.1 4.64 10.83

Fund - Growth 30,
200
7
HDFC Index Fund Mar 5.24 1.34 -3.05 6.18 10.44
- Nifty Plan 30,
200
7
HDFC Index Fund Mar 5.06 0.81 -5.69 3.58 14.59
- Sensex Plan 30,
200
7
HDFC Index Fund Mar 4.59 1.25 -4.68 5.91 14.39
- Sensex Plus Plan 30,
200
7
HDFC Long Term Mar 3.47 -1.65 -5.88 1.4 1.21
Advantage Fund - 30,
Div 200
7
HDFC Long Term Mar 3.47 -1.65 -5.87 1.41 1.22
Advantage Fund - 30,
Growth 200
7
HDFC Long Term Mar 3.83 -0.8 -6.79 1.12 2.36
Equity Fund - 30,
Dividend 200
7
HDFC Long Term Mar 3.83 -0.8 -6.79 1.12 2.36
Equity Fund - 30,
Growth 200
7
HDFC Premier Mar 6.1 1.38 -3.3 6.09 5.31
Multi - Cap Fund - 30,
Dividend 200
7

HDFC Premier Mar 6.1 1.39 -3.29 6.12 5.34

Multi - Cap Fund - 30,
Growth 200
7
HDFC Taxsaver - Mar 4.8 -0.54 -8.27 2.07 3.96
Dividend 30,
200
7
HDFC Taxsaver - Mar 4.8 -0.93 -8.62 1.68 3.55
Growth 30,
200
7
HDFC Top 200 - Mar 5.74 1.21 -4.92 3.66 8.46
Dividend 30,
200
7
HDFC Top 200 - Mar 5.74 1.2 -4.93 3.62 8.36
Growth 30,
200
7
HSBC Advantage Mar 4.63 0.47 -9.17 4.45 4.74
India Fund - 30,
Dividend 200
7
HSBC Advantage Mar 4.63 0.47 -9.17 4.45 4.74
India Fund - 30,
Growth 200
7
HSBC Equity Mar 5.53 1.92 -5.8 7.69 12.7
Fund - Dividend 30,
200
7
HSBC Equity Mar 5.54 1.92 -5.8 7.69 12.68
Fund - Growth 30,
200
7

HSBC India Mar 4.5 0.63 -8.94 9.29 17.57

Opportunities 30,
Fund - Dividend 200
7
HSBC India Mar 4.5 0.62 -8.95 9.29 17.57
Opportunities 30,
Fund - Growth 200
7
HSBC Midcap Mar 2.05 -3.08 -8.04 6.92 -2.02
Equity Fund - 30,
Dividend 200
7
HSBC Midcap Mar 2.05 -3.08 -8.04 6.92 -1.75
Equity Fund - 30,
Growth 200
7
HSBC Offshore Jun 8.3 -9.19 -14.73 3.62 33.9
India Fund 29,
200
6
HSBC Tax Saver Mar 3.51 1.21 NA NA NA
Equity Fund - 30,
Dividend 200
7
HSBC Tax Saver Mar 3.51 1.21 NA NA NA
Equity Fund - 30,
Growth 200
7
HSBC Unique Mar NA NA NA NA NA
Opportunities 30,
Fund - Dividend 200
7
HSBC Unique Mar NA NA NA NA NA
Opportunities 30,
Fund - Growth 200
7

ICICI Premier Feb 0.11 0.21 0.7 1.4 3

8,
200
5
India Advantage Mar 2.65 -2.33 -2.7 8.35 11.08
Fund 26,
200
 7
ING Vysya A.T.M Mar 3.05 -1.32 -2.69 5.54 1.45
Fund - Bonus 30,
200
7
ING Vysya A.T.M Mar 3.05 -1.32 -2.69 5.54 1.45
Fund - Dividend 30,
200
7
ING Vysya A.T.M Mar 3.05 -1.32 -2.69 5.54 1.45
Fund - Growth 30,
200
7
ING Vysya C.U.B. Mar 3.28 -0.51 -1.94 15.02 NA
Fund - Bonus 30,
200
7
ING Vysya C.U.B. Mar 3.28 -0.51 -1.94 15.02 NA
Fund - Dividend 30,
200
7
ING Vysya C.U.B. Mar 3.28 -0.51 -1.94 15.02 NA
Fund - Growth 30,
200
7
ING Vysya Mar 4.46 -0.54 -1.61 0.82 -1.87
Dividend Yield 30,
Fund - Bonus 200
7

ING Vysya Mar 4.48 -0.5 -1.57 0.91 -1.61

Dividend Yield 30,
Fund - Dividend 200
7
ING Vysya Mar 4.46 -0.54 -1.61 0.82 -1.87
Dividend Yield 30,
Fund - Growth 200
7
ING Vysya Mar 6.3 0.66 -5.04 7.04 11.74
Domestic 30,
Opportunities 200
Fund - Bonus 7
ING Vysya Mar 6.22 0.67 -5.08 7.03 11.68
Domestic 30,
Opportunities 200
Fund - Dividend 7
ING Vysya Mar 6.3 0.66 -5.04 7.04 11.74
Domestic 30,
Opportunities 200
Fund - Growth 7
ING Vysya Mar 1.32 -0.17 -2.55 NA NA
Dynamic Asset 30,
Allocation Fund - 200
Bonus 7
ING Vysya Mar 1.32 -0.17 -2.55 NA NA
Dynamic Asset 30,
Allocation Fund - 200
Dividend 7

ING Vysya Mar 1.32 -0.17 -2.55 NA NA

Dynamic Asset 30,
Allocation Fund - 200
 7
ING Vysya Equity Mar 5.1 0.48 -4.69 2.31 5.48
Fund - Dividend 30,
200
7
ING Vysya Equity Mar 5.14 0.49 -4.69 2.34 5.47
Fund - Growth 30,
200
7
ING Vysya Mar 4.34 -0.34 -4.92 1.73 5.74
L.I.O.N Fund - 30,
Bonus 200
7
ING Vysya Mar 4.34 -0.34 -4.92 1.73 5.74
L.I.O.N Fund - 30,
Dividend 200
7
ING Vysya Mar 4.34 -0.34 -4.92 1.73 5.74
L.I.O.N Fund - 30,
Growth 200
7
ING Vysya Mar 5.28 0 -7.24 -0.06 0.75
Midcap Fund - 30,
Bonus 200
7
ING Vysya Mar 5.28 -0.07 -7.23 -0.07 0.75
Midcap Fund - 30,
Dividend 200
7
ING Vysya Mar 5.28 0 -7.24 -0.06 0.75
Midcap Fund - 30,
Growth 200
 7
ING Vysya Nifty Mar 5.65 2.01 -2.6 7.31 14.04
Plus Fund - Bonus 30,
200
7

ING Vysya Nifty Mar 5.69 2.01 -2.58 7.32 14.1

Plus Fund - 30,
Dividend 200
7
ING Vysya Nifty Mar 5.65 2.01 -2.6 7.31 14.04
Plus Fund - 30,
Growth 200
7
ING Vysya Select Mar 4.23 -0.81 -5.97 2.58 5.52
Stocks Fund - 30,
Dividend 200
7
ING Vysya Select Mar 4.19 -0.81 -5.95 2.65 5.43
Stocks Fund - 30,
Growth 200
7
ING Vysya Tax Mar 2.88 -2.11 -7.4 6.83 4.77
Saving Fund - 30,
Bonus 200
7
ING Vysya Tax Mar 3.12 -1.9 -7.2 7.04 3.77
Saving Fund - 30,
Dividend 200
7
ING Vysya Tax Mar 2.88 -2.08 -7.41 6.84 NA
Saving Fund - 30,
Growth 200
7

An Oveview Of AMC Taken For Comparison From Different Companies:

ABN AMRO Mutual Fund:

AMRO mutual fund is promoted by the ABN AMRO banking group, one of the
banking giants in the world with an asset base of over $500 billion. ABN AMRO Asset
Management, a subsidiary of ABN AMRO, manages the investment management
business of the group
.
ABN AMRO Asset Management is one of the world's leading asset management
companies with more than 70 years of experience in managing money for individual
customers and institutional clients.

ABN AMRO Asset Management (India) Limited is the AMC to the ABN AMRO
mutual fund. ABN AMRO Bank NV holds 75 per cent stake in the AMC. As of Aug
2006, the fund has assets of over Rs.4, 176 crore under management.
Here is a list of mutual funds of ABN AMRO:

Equity Schemes:
 ABN AMRO Equity Fund
 ABN AMRO Opportunities Fund
 ABN AMRO Dividend Yield Fund
 ABN AMRO Tax Advantage Plan (ELSS)
 ABN AMRO Future Leaders Fund

Fund of Funds Scheme:

 ABN AMRO Multi Manager Fund
 ABN AMRO Multi Manager Fund - Series 2A

Income Schemes:
 ABN AMRO Monthly Income Plan
 ABN AMRO Flexi Debt Fund
 ABN AMRO Long Term Floating Rate Fund
 ABN AMRO Fixed Term Plan - Series 1
 ABN AMRO Fixed Term Plan - Series 2: Thirteen Month Plan
 ABN AMRO Fixed Term Plan - Series 2: Half Yearly Plan A
 ABN AMRO Fixed Term Plan - Series 2: Quarterly Plan D
 ABN AMRO Fixed Term Plan - Series 2: Quarterly Plan E
 ABN AMRO Fixed Term Plan - Series 3: Quarterly Plan A
 ABN AMRO Fixed Term Plan - Series 3: Yearly Plan
 ABN AMRO Fixed Term Plan - Series 3: Quarterly Plan B
 ABN AMRO Fixed Term Plan - Series 3: Quarterly Plan C

Liquid Schemes:
 ABN AMRO Floating Rate Fund
 ABN AMRO Cash Fund
 Birla Sun life Mutual Fund:
Birla Sun life Mutual Fund is one of India's leading mutual funds with assets of
over Rs.17, 098 crore under management as of Aug 2006. Birla Sun Life Asset
Management Company Limited, the investment manager of Birla Sun life Mutual
Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial
Services, leading international financial services organization.

Established in 1994, Birla Sun life AMC provides investors a range of 18 investment
options, which include diversified and sector specific equity schemes, a wide range of
debt and treasury products, and two offshore funds. Both the sponsors have equal
stakes in the AMC In recognition to its high quality investment products, Birla Sun
Life AMC became India's first asset management company to be awarded the coveted
ISO 9001:2000 certification by DNV Netherlands.

Here is a list of mutual funds of Birla Sun life:

Equity:
 Birla Long Term Advantage
 Birla Advantage Fund
 Birla Dividend Yield Plus
 Birla Equity Plan
 Birla Index Fund
 Birla India Opportunities Fund
 Birla Midcap Fund
 Birla MNC Fund
 Birla Tax Plan 98
 Birla India GenNext Fund
 Birla Top 100 Fund
 Birla Infrastructure Fund
 Birla Sun Life Tax Relief'96
 BSL-New Millennium Fund
 BSL - Equity Fund
 BSL - Buy India Fund
 BSL - Basic Industries Fund
 BSL - Frontline Equity Fund

Debt Schemes:
 Birla Floating Rate Fund
 Birla Cash Plus
 Birla Income Plus
 Birla Gilt Plus
 Birla FMP
 Birla Bond Index Fund
 Birla Dynamic Bond Fund
 Birla Fixed Term Debt Fund Series 1
 Birla Fixed Term Debt Fund Series 2
 Birla Fixed Term Debt Fund Series 3
 Birla Sun Life - Cash Manager
Hybrid Schemes:
 Birla Balance
 Birla Sun Life 95' Fund
 Birla MIP
 Birla MIP II
 Birla Asset Allocation Fund
 Offshore Schemes:
 India Advantage Fund
 Excel India Fund

Tata Mutual Fund

Tata mutual fund, set up in 1995, is one of the leading private sector funds in the
country and is promoted by the Tata group. The sponsors of the fund are Tata Sons
Limited and Tata Investment Corporation Limited.

Tata Asset Management Limited is the investment manager of the mutual fund and has
F K Karavana of Tata Sons as its chairman. The management of the AMC is headed by
Ved Prakash Chaturvedi, managing director. Tata Sons holds a majority stake in the
AMC with the balance being held by Tata Investment Corporation

Tata Mutual Fund offers a wide range of investment products for institutional and
individual investors and as of August 31, 2006, has assets of Rs. 12562.65 crores under
management.
Here is a list of mutual funds of Tata:
Equity Products:

Tata Pure Equity Fund: Ensuring that your hard-earned saving is invested in a way
that earns superior returns.

Tata Tax Saving Fund: Aiming at achieving long term growth of capital along with
income-tax relief for investors

Tata Select Equity Fund: Stock of high dividend company provide

Tata Life Sciences & Technology Fund: Yet another Investor friendly fund

Tata Equity Opportunities Fund: A close-ended equity linked scheme

Tata Index Fund: The return depends upon the behavior of index

Tata Growth Fund: An open-ended growth scheme

Tata Equity P/E Fund: The return will be affected by the performance of the company

Tata Dividend Yield Fund: Seek to generate superior returns

Debt Fund:

Tata Short Term Bond Fund: It is debt index based fund in the country designed to
track it

Tata Gilt Securities Fund: Onekeep money in liquid form to meet your planned and
unplanned requirement

Tata Income Fund: To meet your needs and need your family .onerequire a study
sources

Tata Income Plus Fund: Safety is an extremely important factor governing our
investment decision.

Tata Fixed Horizon Fund: Its gives return and within time horizon period

Tata Liquid Fund: Onekeep money in liquid from to meet your planned and
unplanned requirement
 Principal Mutual Fund
The Principal mutual fund, formerly known as IDBI Principal, is a collaboration
between the Principal Financial Group of the US and nationalized banks Punjab
National Bank and Vijaya Bank. The Principal Financial Group is a 125-year-old
diversified global conglomerate of Financial Services Companies and is the largest
provider of 401 (k) pension plans in the United States.

Principal PNB Asset Management Company Private Limited is the fund manager for
the mutual fund. In all, 65 per cent stake in the AMC is held by the Principal group, 30
per cent by Punjab National Bank and 5 per cent by Vijaya Bank. The operations of the
company are headed by managing director Rajan Ghotgalkar.

Since its inception, the Principal Mutual Fund has launched a series of innovative
investment options. In 2000, it launched India's first Asset Allocation program, branded
as the 'Future Goal Series.' The Principal mutual fund has over Rs.12, 070 crore under
management as of August 2006. Here is a list of mutual funds of Principal:

Equity Funds:

 Principal Index Fund

 Principal Growth Fund

 Principal Tax Savings Fund

 Principal Global Opportunities Fund

 Principal Resurgent India Equity Fund

 Principal Personal Tax Saver Fund

 Principal Dividend Yield Fund

 Principal Focussed Advantage Fund

 Principal Junior Cap Fund

 Principal Large Cap Fund

 Infrastructure & Services Ind Fund

Debt Funds:

 Principal Floating Rate Fund

 Deposit Fund

 Government Securities Fund

 Cash Management Fund

 Principal Income Fund

 Principal Short Term Income Fund

 Principal Monthly Income Plan

 Principal Monthly Income Plan - MIP Plus

 Principal PNB Debt Fund

 Principal Money Value Bond Fund

 Principal FMP 91 Days-Series I

 Principal FMP 91 Days-Series II

 Principal FMP 385 Days-Series I

 Principal FMP 91 Days-Series III

 Fixed Duration Fund 3-Year Plan Series I

 Principal FMP 385 Days-Series II

 Principal FMP 91 Days-Series IV

 Principal FMP 91 Days-Series V

 Principal Pnb FMP 460 Days – Series I

 Principal Pnb FMP 460 Days – Series II

Specialty Funds:

 Principal Trust Benefit Fund

 Principal Child Benefit Fund

Balanced Funds:

 Principal Balanced Fund

Fund Comparison-Rating
Fund Launch Catogary Rating Risk Return 1 year Expense
Name grade grade return ratio
DSPML May- Equity: Not Rated Not Rated Not Rated 55.95 2.22
T.I.G.E.R 2004 Diversified
.
Franklin Feb- Equity: Not Rated Not Rated Not Rated 50.00 1.89
India 2005 Diversified
Flexi Cap
HDFC Dec- Equity: Low Above 53.81 1.93
Equity 1994 Diversified Average
HSBC Dec- Equity: Below Above 44.77 1.99
Equity 2002 Diversified Average Average
ING May- Equity: High Below 39.47 2.50
Vysya 1999 Diversified Average
Select
Stocks
Magnum Feb- Equity: High Above 56.37 2.25
Multiplie 1993 Diversified Average
r Plus
Prudentia Oct- Equity: Not Rated Not Rated Not Rated 42.65 2.29
l ICICI 2004 Diversified
Emerging
STAR
Reliance Mar- Equity: Not Rated Not Rated Not Rated -- --
Equity 2006 Diversified
Sundara Mar- Equity: Below Average 48.56 2.48
m 1997 Diversified Average
Growth
UTI Jul- Equity: Not Rated Not Rated Not Rated -- 2.20
Opportun 2005 Diversified
ities

Fund Comparison-Performance Wise

Fund Name 1Month 1Month 6Month 6 Month 3 Year 3 Year 5 Year 5 Year
Return Rank Return Rank Return Rank Return Rank
% % % %
DSPML 17.32 48/170 8.65 40/147 -- -- -- --
T.I.G.E.R.

Franklin India 16.07 77/170 8.78 39/147 -- -- -- --

Flexi Cap

HDFC Equity 15.55 90/170 7.30 50/147 55.05 19/70 47.38 6/55

HSBC Equity 20.16 11/170 5.29 61/147 58.24 8/70 -- --

ING Vysya 16.64 65/170 5.27 62/147 46.12 44/70 27.49 50/55

Kotak Opp 19.42 16/170 8.97 37/147 -- -- -- --

Magnum Plus 17.15 52/170 7.31 49/147 68.17 5/70 36.83 27/55

Prudential 13.75 121/170 -3.26 107/147 -- -- -- --

ICICI

Reliance 14.03 118/170 -- -- -- -- -- --

Equity

Sundaram 17.22 50/170 11.24 22/147 53.69 22/70 38.43 23/55

Growth
Tata Select 17.55 41/170 7.98 43/147 56.22 15/70 40.02 16/55
Equity

UTI 12.27 145/170 -6.16 130/147 -- -- -- --

Opportunities

Fund Comparision- Tax Plans

 Rating Wise
Fund Name 1Month 1Month 6Month 6 Month 3 Year 3 Year 5 Year 5 Year
Return Rank Return Rank Return Rank Return Rank
% % % %
ABN 13.81 20/26 -- -- -- -- -- -- -- --
AMRO
Tax
Advantage
Plan

Birla 15.06 8/9 -0.11 8/8 33.93 8/8 52.71 2/8 48.59 1/7
Taxplan
'98

BoB ELSS 5.72 9/9 9.35 4/8 37.84 6/8 53.94 1/8 38.51 2/7
'97

Canequity- 15.20 11/26 -1.77 12/23 36.51 8/20 39.70 16/19 23.28 19/19
Tax Saver

DBS 12.35 24/26 -3.62 17/23 -- -- -- -- -- --

Chola Tax
Saver

DWS Tax 15.13 13/26 -- -- -- -- -- -- -- --

Saving

Escorts 14.43 16/26 6.21 2/23 43.67 2/20 45.08 11/19 32.30 11/19
Tax Plan

Fidelity 15.14 12/26 -- -- -- -- -- -- -- --

Tax
Advantage

Franklin 13.30 22/26 3.19 7/23 34.30 10/20 50.03 9/19 37.39 9/19
India
Taxshield

HDFC 18.58 6/26 5.07 4/23 40.00 5/20 67.51 2/19 48.93 3/19
Taxsaver

ING 12.20 25/26 -9.47 22/23 28.54 14/20 -- -- -- --

Vysya Tax
Savings

Kotak Tax 15.43 10/26 -2.50 13/23 -- -- -- -- -- --

Saver

LICMF 19.12 4/26 3.88 5/23 21.80 18/20 32.84 18/19 26.68 17/19
Tax plan

Magnum 19.14 3/26 5.79 3/23 43.15 3/20 86.71 1/19 49.66 2/19
Taxgain
 Fund Comparison-Risk Wise

Fund Fund Standard Sharpe Beta Alpha R-Squared

Name Risk Grade Deviation Ratio
DSPML T.I.G.E.R. Not Rated -- -- -- -- --

Franklin India Flexi Not Rated -- -- -- -- --

Cap

HDFC Equity Low 6.84 0.53 0.90 1.17 0.89

HSBC Equity Below 7.32 0.53 0.94 1.33 0.84

Average
ING Vysya Select High 6.91 0.45 0.86 0.77 0.78
Stocks

Kotak Opportunities Not Rated -- -- -- -- --

Magnum Multiplier High 8.23 0.54 1.02 1.63 0.78

Plus

Prudential ICICI Not Rated -- -- -- -- --

Emerging STAR

Reliance Equity Not Rated -- -- -- -- --

Sundaram Growth Below 7.20 0.49 0.97 0.87 0.93

Average
Tata Select Equity Above 8.37 0.46 1.00 1.14 0.73
Average
UTI Opportunities Not Rated -- -- -- -- --

Fund comparison-tax plans

Rating wise
Fund Launch Catogary Rating Risk Return 1 year Expense
name date grade grade return ratio
ABN Dec-2005 Equity: Not Rated Not Rated Not Rated -- 2.46
AMRO Tax
Tax Planning
Advantage
Plan

Birla Mar-1998 Equity: Not Rated Not Rated Not Rated 33.93 1.75
Taxplan Tax
'98 Planning

BoB ELSS Mar-1997 Equity: Not Rated Not Rated Not Rated 37.84 0.93
'97 Tax
Planning
Canequity- Mar-1993 Equity: High Below 36.51 1.25
Tax Saver Tax Average
Planning
DBS Oct-2005 Equity: Not Rated Not Rated Not Rated -- 2.50
Chola Tax Tax
Saver Planning
DWS Tax Feb-2006 Equity: Not Rated Not Rated Not Rated -- 2.48
Saving Tax
Planning
Escorts Mar-2000 Equity: Above Average 43.67 2.50
Tax Plan Tax Average
Planning
Fidelity Jan-2006 Equity: Not Rated Not Rated Not Rated -- 2.28
Tax Tax
Advantage Planning
Franklin Apr-1999 Equity: Below Average 34.30 2.39
India Tax Average
Taxshield Planning

HDFC Mar-1996 Equity: Low Above 40.00 2.39

Taxsaver Tax Average
Planning
ING Mar-2004 Equity: Not Rated Not Rated Not Rated 28.54 2.50
Vysya Tax Tax
Savings Planning

Kotak Tax Oct-2005 Equity: Not Rated Not Rated Not Rated -- 2.41
Saver Tax
Planning
Magnum Mar-1993 Equity: Average High 43.15 2.29
Tax gain Tax
Planning
Principal Mar-1996 Equity: Average Average 40.47 2.46
Tax Tax
Savings Planning

Prudential Aug-1999 Equity: Above High 30.20 2.36

 Portfolio Wise Comparision
Fund Name P/E Turn Assets Avg Average Top
Ratio Over (Rs.Cr.) Credit Maturity Holdi
(%) Quality (yrs.) ngs
(%)

DSPML Opportunities-G 29.89 103.17 1,356.20 -- -- 17.76

Franklin India Flexi Cap-G 31.08 -- 3,364.79 -- -- 26.01

HDFC Equity-G 31.70 144.91 3,907.14 -- -- 28.80

HDFC Top 200-G 25.92 80.86 1,621.10 -- -- 26.53

Pru ICICI Dynamic-G 26.27 233.03 1,809.58 -- -- 32.82

Reliance Vision-G 26.00 61.77 2,415.31 -- -- 28.05

 Comparision Top 10 Funds with UTI Mutual Funds
Snapshot
Fund name Launch Catogary Rating Risk Return 1 Expense
date grade grade year ratio
return
DSPML Apr- Equity: Below Above 8.34 1.97
Opportunities 2000 Diversified Average Average
Franklin Feb- Equity: Not Rated Not Rated Not Rated 8.06 1.85
India Flexi 2005 Diversified
Cap
HDFC Dec- Equity: Low Above 12.24 1.85
Equity 1994 Diversified Average
HDFC Top Sep- Equity: Low Above 8.36 2.00
200 1996 Diversified Average
Prudential Oct- Equity: Above High 18.75 2.04
ICICI 2002 Diversified Average
Dynamic
Reliance Oct- Equity: Below High 10.04 1.92
Vision 1995 Diversified Average
SBI One Dec- Equity: Not Rated Not Rated Not Rated -- --
India 2006 Diversified
Sundaram Jun- Equity: Not Rated Not Rated Not Rated -0.82 2.34
BNP Paribas 2004 Diversified
India
Leadership
Sundaram Jul-2002 Equity: Low High 15.10 2.08
BNP Paribas Diversified
Select
Midcap
UTI Brand Jun- Equity: Below Low -0.70 2.28
Value 1999 Diversified Average
Selecting a Mutual fund:

Picking a mutual fund from among the thousands offered is not easy. Following are some
guidelines:

1. Prior to investing in a tax-exempt or tax-managed fund, it is best to determine if

the tax savings will offset the possibly lower returns. Additionally, these funds are
inappropriate for IRAs and other tax-sheltered types of account.

2. Investors should match the term of the investment to the time period they expect
to keep the investment. Money that may be needed in the short term should
generally be in a less volatile fund, such as a money market fund. Money not
needed until a retirement date decades into the future can reasonably be invested
in longer-term, higher-risk investments, such as stock or bond funds. Investing
short-term money in volatile investments puts the investor at risk of having to sell
when the market is low, thereby incurring a loss. Investing over the long term in
very stable investments, on the other hand, significantly reduces potential returns.

3. Fund expenses degrade investment performance, especially over the long term.
Accordingly, all other things being equal, the lower the expenses, the better. A
mutual fund's expense ratio is required to be disclosed in the prospectus. Expense
ratios are critical in index funds, which seek to match the performance of bond or
stock index. Actively managed funds must pay the manager for the active
management of the portfolio, so they usually have a higher expense ratio than
(passively managed) index funds.

4. Several sector funds often make the "best fund" lists each year. However, the
"best" sector varies from year to year. Most sectors are vulnerable to industry-
wide events that can have a significant negative effect on performance. It is
generally best to avoid making these a large part of one's portfolio.

5. Closed-end funds often sell at a discount to the value of their holdings. An

investor can sometimes obtain extra return by buying such funds, but only if they
 are willing to hold the fund until the discount rebounds. Some hedge fund
managers use this gambit. However, this also implies that buying at the original
issue may be a bad idea, since the price often drops immediately because of
liquidity concerns.

6. Mutual funds often make taxable distributions near the end of the year (semi-
annual and quarterly distributions are also fairly common). If an investor plans to
invest in a taxable fund, he or she should check the fund company's website to see
when the fund plans to distribute dividends and capital gains. Investing just prior
to the distribution results in part of one's investment being returned as taxable
income without increasing the value of the account.
Investment Details
 Fund name Expense Front Back Minimum Portfolio Tenure
ratio% Load End Load Intial Manager (yrs.)
% % Investment

DSPML
1.97 2.25 0.00 5000 Anup Maheshwari 1
Opportunities

Franklin India Flexi K.N.Siva

1.85 2.25 0.00 5000 2
Cap Subramanian

1.85 2.25 0.00 5000 Prashant Jain 4

HDFC Equity

2.00 2.25 0.00 5000 Prashant Jain 5

HDFC Top 200

PrudentialICICI 2.04 2.25 0.00 5000 Sankaran Naren 1

Dynamic

1.92 2.25 0.00 5000 Ashwani Kumar 3

Reliance Vision

-- -- -- 5000 Sanjay Sinha 1

SBI One India

Sundaram BNP
2.34 2.25 0.00 5000 Srividhya Rajesh 2
Paribas India
Leadership

Sundaram BNP2.08 2.25 0.00 5000 Anoop Bhaskar 1

Paribas Select Midcap

2.28 2.25 0.00 5000 Swati Kulkarni 3

UTI Brand Value
 Nav Details
Fund NAV As On Chg. 52 As on 52 As on
Name From Weeks weeks
Previous High low
DSPML 52.168 Mar 30, 2007 0.80 58.78 Feb 07, 200 36.47 Jun 14, 2006
Opportunities- 7
G

HDFC Top 104.50 Mar 30, 2007 0.91 114.86 Feb 08, 200 73.82 Jun 14, 2006
200-G 4 7

Pru ICICI 63.018 Mar 30, 2007 0.65 69.07 Feb 07, 200 40.25 Jun 14, 2006
Dynamic-G 7

Reliance 169.7 Mar 30, 2007 1.16 190.85 Feb 08, 200 115.15 Jun 14, 2006
Vision-G 7

SBI One 9.94 Mar 30, 2007 0.61 10.11 Feb 07, 200 9.77 Mar 05, 2007
India-G 7

Sundaram 27.412 Mar 30, 2007 0.97 31.47 Feb 07, 200 20.16 Jun 14, 2006
BNP Paribas 5 7
India
Leadership-G

Sundaram 86.155 Mar 30, 2007 0.85 96.45 Feb 07, 200 64.50 Jun 14, 2006
BNP Paribas 2 7
Midcap-G

UTI Brand 25.5 Mar 30, 2007 1.27 27.75 Feb 02, 200 19.09 Jun 14, 2006
Value-G 7
Mutual Fund Data for the Month Ended - Feb 28, 2007
Category No. of Sales Redemption Assets Under
new Management
schemes New Existing Total Total as on as on Inflow/

launched schemes schemes Feb Jan 31 , Outflow

during 28 , 2007

the 2007

month
B Bank 2 453 22157 22610 18493 59410 57513 1897
Sponsored
C Institutions 3 201 9441 9642 10583 11497 12237 -740
D Private Sector and Joint Venture :
I Indian 19 6073 46340 52413 45754 81840 77701 4139
III 16 3632 39168 42800 40532 83693 84307 -614
Predominantly
Foreign
II 15 5497 65666 71163 57591 116870 107904 8966
Predominantly
Indian
Grand Total 55 15856 182772 198628 172953 353310 339662 13648
(A+B+C+D)

Sales during the month of February, 2007

New Schemes
New Schemes Amount in Rs.Crores
Open Close End Total
End

No. of Amt No. of Amt No. of Amt

 Schemes Schemes Schemes
Balanced
- - - - - -

ELSS
- - - - - -

Gilt
- - - - - -

Growth
- - 3 1071 3 1071

Income
- - 52 14785 52 14785

Liquid/Money
Market - - - - - -

Total
- - 55 15856 55 15856

Sales during the Month of February, 2007

Existing Schemes
Existing Schemes Amount in Rs. Crores

Open End Close End Total

No. of Amt. No. of Amt. No. of Amt.

Schemes Schemes Schemes
34 458 3 - 37 458
Balanced

29 653 9 - 38 653
ELSS

28 88 - - 28 88
Gilt

208 6807 14 - 222 6807

Growth

128 -275 125 2042 253 1767

Income

Liquid/Money 54 172999 - - 54 172999

Market

481 180730 151 2042 632 182772

Total

Sales during the Month of February, 2007

All Existing Schemes
All Schemes Amount in Rs. Crores

Balanced
34 458 3 - 37 458

ELSS
29 653 9 - 38 653

Gilt
28 88 - - 28 88

Growth
208 6807 17 1071 225 7878

Income
128 -275 177 16827 305 16552
Liquid/Money
Market 54 172999 - - 54 172999

Total
481 180730 206 17898 687 198628

Mutual Fund Roundup: February 2007

Every year, the month of February is earmarked for the Union Budget. Often all the
excitement and hype surrounding it tends to dwarf other relevant issues. For investors,
fact sheets serve as guides and vital sources of information of mutual fund schemes.
However, we believe that the information provided by the AMCs (Asset Management
Companies) in these fact sheets is often inadequate and/or incoherent.

This month the equity markets fell sharply and closed in negative terrain. The BSE

Sensex shed 8.18% during the month to close at 12,938 points; the S&P CNX Nifty

slumped even harder to settle at 3,745 points (down 8.27%). The CNX Midcap posted a

loss of 7.63% to close at 4,877 points.

Source: www.personalfn.com

In February 2007, Foreign Institutional Investors (FIIs) were net buyers of equities with

purchases of Rs 55,954 m (as on February 28, 2007). On the contrary mutual funds were

net sellers to the tune of Rs 2,739 m.

Another issue, that requires immediate attention, is the lack of availability of basic
information in public domain. By basic information, we are referring to the information
on benchmark indices. Unlike the information on equity benchmark indices (BSE Sensex
and S&P CNX Nifty, to name the most popular ones), which is available in public
domain, the information on benchmark indices for other categories (like balanced funds,
MIPs and debt funds) is hard to find these days. The reason - information on these
categories has become “paid” for some time now. Thus, if a retail investor wants to
compare the performance of the relevant mutual fund with the benchmark index, it’s not
possible for him to do so.
 Analysis of Data on Basis Different Parameters

Fund name Fund Standard Sharpe Beta Alpha R-squared

risk grade deviation ratio
ABN AMRO Not Rated -- -- -- -- --
Tax Advantage
Plan
Birla Taxplan Not Rated 7.36 0.50 0.88 1.29 0.72
'98

BoB ELSS '97 Not Rated 8.10 0.44 0.94 1.01 0.69

Canequity-Tax High 7.73 0.37 0.88 0.44 0.66

Saver
DBS Chola Not Rated -- -- -- -- --
Tax Saver

DWS Tax Not Rated -- -- -- -- --

Saving

Escorts Tax Above 7.70 0.41 0.96 0.50 0.80

Plan Average

Fidelity Tax Not Rated -- -- -- -- --

Advantage

Franklin India Below 6.81 0.50 0.88 0.98 0.86

Taxshield Average

HDFC Low 7.45 0.57 0.93 1.72 0.80

Taxsaver

ING Vysya Not Rated -- -- -- -- --

Tax Savings

Kotak Tax Not Rated -- -- -- -- --

Saver

LICMF Tax Below 6.90 0.35 0.90 -0.05 0.86

Plan Average

Magnum Average 7.96 0.67 0.91 2.82 0.66

Taxgain

Principal Tax Average 7.32 0.49 0.90 1.09 0.78

Savings

Prudential Above 8.92 0.48 1.00 1.50 0.64

ICICI Tax Plan Average

Reliance Tax Not Rated -- -- -- -- --

Saver

Sundaram Average 8.25 0.47 1.00 1.13 0.75

Taxsaver
 Conclusions

The MUTUAL FUND industry has gone a rapid growth.

 During the analysis of Different mutual fund , I have found that the figures given
by the Company shows a true picture of the Company’s performance
  Through the Fund Performance I knew that almost all the Funds are representing a
good position of the Company. The future prospects of the Company are
Satisfactory.
 Their different products are very good in terms of maturity benefit and tax benefit
 When I analyzed the company’s fund performance vis-à-vis their benchmark
indices, they have continuously outperformed the benchmark indices
 If onelook at NAV per unit of different funds, onesee that the NAV per unit of all
the funds has been continuously increasing from their inception period
 All the Funds are well diversified as it is depicted by the above mentioned PIE
charts but they are mostly invested into equity markets for the better return
 They are being well diversified into different sectors of equity market so that risk
could be minimized
 When I analyzed the company’s fund performance vis-à-vis their competitors’
fund performance, they are the superior one

The objective of the ongoing work at hand was to present a brief idea about the mutual
fund – its type, its performance in the country, its future scope along with a emphasis
upon comparing type of schemes.

The kick started with an introduction to MF. Followed by an exhaustive literature survey
covering each and every aspect, strictly covering within the domain of mutual fund at
every stage.
A plot of fund return was established hereby making it possible for as to determine the
indicators of MF. Performance namely Beta, standard deviation, r-square.
UTI equity fund is rated five stars amongst the foresaid schemes

In spite of the wide disparity prevalent amongst the schemes under consideration with
respect to their r-square values, these schemes have one thing more or less in common
standard deviation. A high standard deviation for all the schemes suggested that their will
definitely be a pinch of salt in the investment in these schemes. It also cautions the
investors to be judicious about their investment and make calculated risks while
expecting to reap the benefit

During the course of this two month wherein i was completely involved in project work, I
interacted with the current as well as prospective customers of the financial institutions.
In this two way interaction, I came across a few aspects which do need a special mention.
There is a low level of finance literacy in India. This is a clear cut indication that there
might be even lower awareness about financial product in rural India. Effort must be
made to increase the financial awareness amongst the masses.

A substantial amount of mutual fund investment comes from upper class. Only those
middle class people who are financially educated pool their money in these products.
People need to be educated mutual fund product and their benefits the understanding of
net assets values, the fact that return are not assured mutual fund is not a fixed income
and capital guarantee. Unless the company is comfortable about the fact that there are
people who understand the product, only them could their product be sold there.

Suggestions

 Although their portfolio are well diversified but mostly of them are equity
oriented. So, there is more risk in terms of return because return on equity is
uncertain. So they should keep a balance between equity and debt
investments.
 UTI MF should have a comprehensive risk measurement system that serves as
a single point indicator of diverse risk factors

 The risk measurement process adopted by the UTI MF is not advanced. It

should be updated according to the changes in the circumstances

 UTI MF should take care of the liquidity position of the organization

 The Indian Market is very huge for the Mutual Fund. So UTI MF should
increase the awareness amongst Indian people and take the benefit of this huge
untapped market

Limitations of the Study

• Analysis based purely on data provided by the Company

• Affected by the Government Policies

• Changes in SEBI Guidelines

• Affected by the Company Policies

• The data provided may not be 100% correct or changed

during the period.

• Based on different sectors’ performance like Equity and Debt

markets.
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Some Important Websites

www.utimf.com
www.rbi.gov.in
www.valueresearchonline.com
www.amfi.com
www.investopedia.com
www.mutualfundindia.com