ICICI GROUP:

OVERVIEW

ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. ICICI GROUP CONSIST OF FOLLOWING COMPANIES: ICICI BANK ICICI PRUDENTIAL LIFE INSURANCE COMPANY ICICI SECURITIES LIMITED ICICI SECURITIES PRIMARY DEALERSHIP LIMITED ICICI LOMBARD GENERAL INSURANCE COMPANY ICICI PRUDENTIAL ASSETS MANAGEMENT COMPANY ICICI BENTURE

ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries. ICICI Prudential Life Insurance Company is a 74:26 joint venture with Prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver.The company operates on a multichannel platform and has a distribution strength of over 2,76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009. ICICI Lombard General Insurance Company, a joint venture with the Canada based Fairfax Financial Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2%

from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009. ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services - institutional sales and trading, resource mobilisation, portfolio management services and research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. I-Sec PD has been recognised as the 'Best Domestic Bond House in India' by Asiamoney every year from 2002 to 2007 and selected as 'Best Bond House' by Financeasia.com for the years - 2001, 2004 to 2007 and 2009." ICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. 514.33 billion and a market share of 10.43% as on March 31, 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country.

ICICI Venture is one of the largest and most successful private equity firms in India with funds under management in excess of USD 2 billion. ICICI Venture, over the years has built an enviable portfolio of companies across sectors including Life Sciences, Information Technology, Media, Manufacturing, Retail, Financial Services, and Real Estate thereby building sustainable value. It has several firsts to its credit in the Indian Private Equity industry. Amongst them are Indias first leveraged buyout (Infomedia), the first real estate investment (Cyber Gateway), the first mezzanine financing for a acquisition (Arch Pharmalabs), the first royalty-based structured deal in Pharma Research & Development (Dr Reddys Laboratories - JV) and the first fund level secondary transaction (Coller Capital).

ICICI PRUDENTIAL ASSETS MANAGEMENT COMPANY CORPORATE PROFILE: ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, Indias second largest commercial bank & a well-known and trusted name in the financial services in India, & Prudential Plc, one of the United Kingdoms largest players in the financial services sectors. In a span of over 18 years since inception and just over 13 years of the Joint Venture, the company has forged a position of preeminence as one of the largest Asset Management Companys in the country, contributing significantly towards the growth of the Indian mutual fund industry. The company manages significant Mutual Fund Assets under Management (AUM), in addition to our Portfolio Management Services (PMS) and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. As an Asset Management Company, we have over 18 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual fund schemes and a wide range of PMS Products for our investors spread across the country. We service this investor base with our own branch network of around 168 branches and a distribution reach of over 42,000 channel partners. ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,538 branches and about 6,810 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Center and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. They serve approximately, 25 million customers and have 290 billion in assets under management. They are among the leading capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009). The Group is structured around four main business units: Prudential Corporation Asia (PCA) PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and Vietnam. PCA provides a comprehensive range of savings, protection and investment products that are specifically designed to meet the needs of customers in each of its local markets. PCAs asset management business in Asia has retail operations in 10 markets and it independently manages assets on behalf of a wide range of retail and institutional investors across the region. Jackson National Life Insurance Company Jackson is one of the largest life insurance companies in the US, providing retirement savings and income solutions to more than 2.8 million customers. It is also one of the top five providers of variable and fixed index annuities in the US. Founded nearly 50 years ago, Jackson has a long and successful record of providing effective retirement solutions for their clients. Prudential UK & Europe (PUE) PUE is a leading life and pensions provider to approximately 7 million customers in the UK.It has a number of major competitive advantages including significant longevity experience, multi-asset investment capabilities, a strong investment track record, a highly respected brand and financial strength. PUE continues to focus on its core strengths including its annuities, pensions and investment products where it can maximize the advantage it has in offering with-profits and other multi-asset investment funds. M&G M&G is Prudentials UK and European fund management business with total assets under management of 174 billion (as at December 31, 2009).M&G has been investing money for individual and institutional clients for nearly 80 years. Today it is among the largest investors in the UK stock market, as well as being a powerhouse in fixed-income investments.

EXCHANGE TRADED FUNDS ICICI Prudential Gold Exchange Traded Fund World over, Gold is a subject of economic interest and is viewed as an avenue for investments. But in India, it has a deeper significance as it appeals to a number of emotions, from a form of adornment to a status symbol. Through the years gold's appeal in India has evolved from an object of pure aesthetic value to a commodity which offers itself as an avenue for investment and wealth creation.

ICICI Prudential Gold Exchange Traded Fund, an open-ended exchange traded fund, aims to provide investment returns that, before expenses, closely track the performance of domestic prices of Gold derived from the LBMA AM fixing prices. Investment Philosophy This fund is a passively managed open-ended Exchange Traded fund, which invests in gold bullion and instruments with gold as underlying, so as to provide investment returns that, before expenses, closely track the performance of domestic prices of Gold derived from the LBMA AM fixing prices. The fund is not actively managed and it does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of gold. Investor Profile This fund is ideal for Investors looking to diversify from other asset classes like Equity, Debt & Real Estate. Investors who already have physical gold holdings. Key Benefits Its cost is lower than buying, storing and insuring physical gold. Gold can be bought and sold in small quantities - as low as 1 unit (approximately equivalent to 1 gram of gold. Unlike jewellery or coins or bars, ETF units can be liquidated easily to benefit from rise in price of gold. Purity of gold purchased will be 99.50% or higher. Key Features Type Open-ended Exchange Traded Fund Options Growth and Dividend Option. Default Option Dividend Reinvestment Application Amount One unit (One unit = apprx. 1 gram gold)

Min. Additional Investment One unit (One unit = apprx. 1 gram gold) Entry Load NIL Exit Load Nil There will be no exit load on units bought or sold through the NSE and BSE. Investors are requested to note that the brokerage for purchase or sale of units of the Scheme on the exchange is to be born by the investors themselves. Redemption Cheques Issued Minimum Redemption Amt. One unit (One unit = apprx. 1 gram gold) Systematic Investment Plan Not Available Systematic Withdrawal Plan Not Available Net Asset Value Periodicity Calculated & Declared on every Business day Tax Benefits Capital Gains Tax and Indexation benefits. Current Expenses ratio Recurring Expenses Investment Mangmt. Exp. Other Recurring Expenses Schemes ICICI Prudential Gold Exchange Traded Fund Latest NAV (Rs.) 2737.0208 (20 Mar 2012)

EXCHANGE TRADED FUND HDFC GOLD EXCHANGE TRADED FUND: Investment Objective The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors. Basic Scheme Information Nature of Scheme Option/Plan An open ended Exchange Traded Fund Currently, there are no investment Plans / Options being offered under the Scheme. However, the Trustee reserve the right to introduce investment Plans / Options under the Scheme at a future date in accordance with SEBI (MF) Regulations. Not Applicable. Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors assessment of various factors including the service rendered by the ARN Holder. For Creation Unit Size: No Exit load will be levied on redemptions made by Authorised Participants / Large Investors directly with the Fund in Creation Unit Size. For other than Creation Unit Size: Not Applicable The Units of HGETF in other than Creation Unit Size cannot be directly redeemed with the Fund. These Units can be redeemed (sold) on a continuous basis on the NSE and BSE during the trading hours on all trading days. Please click here to go through the addendum Minimum Application Amount Authorised Participants: Application for subscription of HGETF Units directly with the Fund in Creation Unit Size at NAV based prices in exchange of Portfolio Deposit and Cash Component. Large Investors: Application for subscription of HGETF Units directly with the Fund in Creation Unit Size at NAV based prices by payment of requisite Cash as determined by the AMC only by means of payment instruction of Real Time Gross Settlement (RTGS)/National Electronic Funds Transfer (NEFT) or Funds Transfer Letter/ Transfer Cheque of a bank where the Scheme has a collection

Entry Load (as a % of the Applicable NAV)

Exit Load (as a % of the Applicable NAV)

account. Other investors (including Authorised Participants and Large Investors): Units of HGETF can be subscribed (in lots of 1 Unit) during the trading hours on all trading days on the NSE and BSE on which the Units are listed. Lock-In-Period Net Asset Value Periodicity Redemption Proceeds Tax Benefits (As per present Laws) Current Expense Ratio (#) (Effective Date 13th August 2010) Nil Every Business Day. Within 10 working days. Please click for details 1.00%

(#) Any change in the expense ratio will be updated within two working days. Plan Name NAV Date NAV Amount

Growth 20 Mar 2012 2719.9231 TOP Investment Pattern The table below provides the broad asset allocation of the portfolio of Scheme to be followed under normal circumstances. Type of Asset / Instruments Indicative allocations Instruments (% of Risk Profile total assets) Minimum Gold bullion* Debt Securities and Money Market Instruments # 90 0 Maximum 100 10 Medium to High Low

* Investments in gold related instruments (including derivatives) will be made as and when SEBI permits mutual funds to invest in gold related instruments. # Investment in securitised debt shall not normally exceed 10% of the net assets of the Scheme. TOP Investment Strategy The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors. The Scheme would invest in gold in the domestic market and intends to track the spot price of gold in the domestic market. The Scheme also may engage in gold lending, and /or deposit gold with banks in return for fees as and when permitted by SEBI. The Scheme will also invest in debt and money market securities in order to meet the liquidity requirements. Though every endeavor will be made to achieve the objectives of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.

RISK CONTROL Investments made from the net assets of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations. The AMC will strive to achieve the investment objective by way of a judicious portfolio mix comprising of Gold bullion and instruments related to gold (including derivatives as and when permitted by SEBI), Debt Securities and Money Market Instruments. Investments in gold bullion would be primarily assessed with regard to its fineness. Every investment opportunity in Debt Securities and Money Market Instruments 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 utilise Ratings of recognized rating agencies as an input in the decision making process. Investments in Debt Securities and Money Market Instruments will usually be in instruments that have been assigned high investment grade ratings by a recognised 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 AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any security does not fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought. Interest Rate Risk An interest rate scenario analysis would be performed on an on-going basis, considering the impact of the developments on the macro-economic front and the demand and supply of funds. Based on the above analysis, 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 in time. 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. TRACKING ERROR Tracking error means the variance between daily returns of the underlying benchmark (gold in this case) and the NAV of the Scheme for any given period. NAV of the Scheme is dependant on valuation of gold. Gold has to be valued based on the formula prescribed by SEBI. NAV so computed may vary from the price of Gold in the domestic market. Tracking error could be the result of a variety of factors including but not limited to: Delay in the purchase or sale of gold due to - Illiquidity of gold, - Delay in realisation of sale proceeds, - Creating a lot size to buy the required amount of gold

The Scheme may buy or sell the gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing prices. The potential for trades to fail, which may result in the Scheme not having acquired gold at a price necessary to track the benchmark price. The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses. Disinvestments to meet redemptions, recurring expenses, dividend payouts etc. Execution of large buy / sell orders Transaction cost (including taxes and insurance premium) and recurring expenses Realisation of Unit holders funds Tracking error due to movement in prices of physical gold will impact the performance of HGETF. However, the Scheme will endeavor to keep tracking error as low as possible by: Use of gold related derivative instruments, as and when allowed by SEBI (MF) Regulations Rebalancing of the portfolio. Setting off of incremental subscriptions against redemptions. Disclaimer of NSE/BSE: It is to be distinctly understood that the permission given by NSE/ BSE should not in any way be deemed or construed that the SID has been cleared or approved by NSE/ BSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document/ SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of NSE/ BSE. TOP Fund Manager Mr. Anil Bamboli. TOP Portfolio - Holdings (as on February 29, 2012) Company Gold 995 (Fineness) 1 Kg Bars Cash, Cash Equivalents and Net Current Assets Grand Total Average AUM for the quarter ended December 31, 2011 (Rs In Lakhs) Note : $ Sponsor TOP % to NAV 99.74 0.16 100.00 48,221.42

Information Updated As On 30-Aug-2011 Name of the Mutual Fund Date of setup of Mutual Fund Name(s) of Sponsor Name of Trustee Company ICICI Prudential Mutual Fund October 13, 1993 Prudential Plc and ICICI Bank Ltd. ICICI Prudential Trust Ltd. Mr. Mr. Mr. Mr. Mr. M. N. Gopinath - Chairman Keki Bomi Dadiseth - Director M. S. Parthasarathy - Director Sandeep Batra - Director Vinod Dhall - Director

Name of Trustees

Name of the Asset Management Co. Date of Incorporation of AMC

ICICI Prudential Asset Mgmt.Company Limited June 22, 1993 Mr. Barry Stowe Mr. C. R. Murlidharan Mr. Dileep Choksi Mr. N.S.Kannan Mr. Nimesh Shah Mr. Vijay Thacker Mr. Vikram B. Trivedi Ms. Chanda Kochhar Ms. Chanda Kochhar Mr. Nimesh Shah Mr. Chaitanya Pande Mr. S Naren Ms. Supriya Sapre Ms. Kamaljeet Saini

Name(s) of Director

Name of Chairman Name of Chief Executive Officer Name of Head-Fixed Income Name(s) of Chief Investment Officer - Equity Name of Compliance Officer Name of Investor Service Officer Address of AMC

3rd Floor, Hallmark Business Plaza,Sant Dyaneshwar Marg,

Telephone Number Fax Number Website Email Name(s) of Auditors Name(s) of Custodian Name(s) of Registrar and Transfer Agent

(B)26428000 2655 4165 www.icicipruamc.com enquiry@icicipruamc.com M/s N. M. Raiji & Company HDFC Bank Limited Computer Age Management Services Pvt. Ltd.

Registrar & Transfer Agents Computer Age Management Services (P) Limited (CAMS), Unit : ICICI Prudential Mutual Fund Spencer Plaza, Phase II, S49A, 172, Anna Salai, Chennai - 600 002.India Tel: (+91) 044 2850 0500 Fax: (+91) 044 2850 0693

Custodian The HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400 013.

AWARDS AND ACHIEVEMENT: ICICI Prudential AMC has constantly been on the forefront of innovation and has introduced products aligned to meet customer needs leading to a well-diversified product portfolio. As acknowledgment of our efforts , we have received valued recognition from various organizations of international repute. Bloomberg UTV Financial Leadership Awards 2011 ICICI Prudential AMC received the coveted UTV Bloomberg Financial Leadership Award 2011 for Best Contribution in Investor Education & Category Enhancement of the Year in the mutual fund category. Mr. Nimesh Shah , Managing Director, ICICI Prudential AMC received this prestigious accolade from Honorable Finance Minister, Shri Pranab Mukherjee. Morning Star Mutual Fund Awards 2011 India Debt Fund House Award 2011 Business World Mutual Fund Awards 2010 ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3-year SIP performance) ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund Mid and Small Cap for the year 2010 Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential Discovery Fund) for the year 2010 Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI Prudential Discovery Fund ) for the year 2010 NDTV Profit Mutual Fund Awards 2010 ICICI Prudential Discovery Fund - Category Emerging Leader (Based on past 3-year SIP performance) Lipper Fund Awards 2010 India ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset INR flexible) ICICI Prudential Gilt Fund Investment Pl-PF Opt-Gth - Best Fund over 3 & 5 Years (Bond Indian Rupee Government)

Mutual Fund Types The diffrent schemes and funds There are wide variety of Mutual Fund schemes that cater to investor needs, whatever the age, financial position, risk tolerance and return expectations. The mutual fund schemes can be classified according to both their investment objective (like income, growth, tax saving) as well as the number of units (if these are unlimited then the fund is an open-ended one while if there are limited units then the fund is close-ended).

Open-ended schemes These funds are sold at the NAV based prices, generally calculated on every business day. These schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity - i.e. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange. Open-ended funds are bringing in a revival of the mutual fund industry owing to increased liquidity, transparency and performance in the new open-ended funds promoted by the private sector and foreign players. Open-ended funds score over close-ended ones on several counts. Some of these are listed below:

Any time exit option : The issuing company directly takes the responsibility of providing an entry and an exit. This provides ready liquidity to the investors and avoids reliance on transfer deeds, signature verifications and bad deliveries. Tax advantage : Though Budget 2004 proposals envisage a tax rate of 20.91%(Corporate investors) and 13.06875%(Non-Corporate investors) on dividend distribution made by the Debt funds, the funds continue to remain attractive investment vehicles. In equity plans there is no distribution tax. Any time entry option : An open-ended fund allows one to enter the fund at any time and even to invest at regular intervals (a systematic investment plan). The open ended funds offered by ICICI Prudential Mutual Fund are Liquid Plan, Income Plan, Gilt-Treasury, Gilt-Investment, Balanced Fund, Growth Fund, Tax Plan, FMCG Fund, Technology Fund, Monthly Income Plan, Child Care Plan,Power and Short Term Plan

Close ended schemes Schemes that have a stipulated maturity period, limited capitalization and the units are listed on the stock exchange are called close-ended schemes. These schemes have historically seen a lot of subscription. This popularity is estimated to be on account of firstly, public sector MFs having floated a lot of close-ended income schemes with guaranteed returns and secondly easy liquidity on account of listing on the stock exchanges. The closed-ended fund managed by ICICI Prudential Mutual Fund is ICICI Premier.

Classification according to investment objectives

Objectives Mutual funds have specific investment objectives such as growth of capital, safety of principal, current income or tax-exempt income. In general mutual funds fall into three general categories:

Equity Funds invest in shares or equity of companies. Fixed-Income funds invest in government or corporate securities that offer fixed rates of return. Balanced Funds invest in a combination of both stocks and bonds.

Growth Funds These funds seek to provide growth of capital with secondary emphasis on dividend. They invest in shares with a potential for growth and capital appreciation. Because they invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential, growth funds provide low current income. Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth. These funds may invest in a broad range of industries or concentrate on one or more industry sectors. Growth funds are suitable for investors who can afford to assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains. They are not suitable for investors who must conserve their principal or who must maximize current income. Growth and Income Funds Growth and income funds seek long-term growth of capital as well as current income. The investment strategies used to reach these goals vary among funds. Some invest in a dual portfolio consisting of growth stocks and income stocks, or a combination of growth stocks, stocks paying high dividends, preferred stocks, convertible securities or fixed-income securities such as corporate bonds and money market instruments. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks. Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. They are suitable for investors who can assume some risk to achieve growth of capital but who also want to maintain a moderate level of current income. Fixed-Income Funds The goal of fixed income funds is to provide current income consistent with the preservation of capital. These funds invest in corporate bonds or government-backed mortgage securities that have a

fixed rate of return. Within the fixed-income category, funds vary greatly in their stability of principal and in their dividend yields. High-yield funds, which seek to maximize yield by investing in lower-rated bonds of longer maturities, entail less stability of principal than fixed-income funds that invest in higher-rated but lower-yielding securities. Some fixed-income funds seek to minimize risk by investing exclusively in securities whose timely payment of interest and principal is backed by the full faith and credit of the Indian Government. Fixed-income funds are suitable for investors who want to maximize current income and who can assume a degree of capital risk in order to do so. Balanced The Balanced fund aims to provide both growth and income. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. Ideal for investors who are looking for a combination of income and moderate growth. Money Market Funds/Liquid Funds For the cautious investor, these funds provide a very high stability of principal while seeking a moderate to high current income. They invest in highly liquid, virtually risk-free, short-term debt securities of agencies of the Indian Government, banks and corporations and Treasury Bills. Because of their short-term investments, money market mutual funds are able to keep a virtually constant unit price; only the yield fluctuates. Therefore, they are an attractive alternative to bank accounts. With yields that are generally competitive with - and usually higher than -- yields on bank savings account, they offer several advantages. Money can be withdrawn any time without penalty. Although not insured, money market funds invest only in highly liquid, short-term, top-rated money market instruments. Money market funds are suitable for investors who want high stability of principal and current income with immediate liquidity. Specialty/Sector Funds These funds invest in securities of a specific industry or sector of the economy such as health care, technology, leisure, utilities or precious metals. The funds enable investors to diversify holdings among many companies within an industry, a more conservative approach than investing directly in one particular company. These funds invest in securities of a specific industry or sector of the economy such as health care, technology, leisure, utilities or precious metals. The funds enable investors to diversify holdings among many companies within an industry, a more conservative approach than investing directly in one particular company. Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or other broad stock market indices. They are not suitable for investors who must conserve their principal or maximize current income. A summary is presented in the table below of the various funds and their investment

objectives.
Scheme type 998 Time Horizon Risk Profile Typical Investment Pattern

Objective

Open

Close

Equity (%)

Debt (%)

Money Market Inst./Others (%)

Money Market

Yes

No

ShortTerm Medium -Long Term Long Term Long term Long term

Low

0-20

80-100

Income

Yes

Yes

Low to Medium

80100

0-20

Growth

Yes

Yes

High

80100

0-20

0-20

Balanced

Yes

Yes

Medium to high

0-60

0-40

0-20

Tax Saving

Yes

Yes

High

80100

80100

0-20