DECEMBER 2012 131 - HDFC Bank · PDF file... their initial contribution of Rs.1 lakh towards...

DECEMBER 2012 131

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The tax benefits are as per the current Income Tax laws & rules and any other law for the time being in force. Investors are advised to consult their tax advisors before investing in the scheme. Statutory Details: Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882. Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Company Limited. Investment Manager: Reliance Capital Asset Management Limited (Registered Office of Trustee & Investment Manager: "Reliance House" Nr. Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006). The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. Reliance Tax Saver (ELSS) Fund (An Open ended Equity Linked Savings Scheme): The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. Load: Entry Load - Nil, Exit Load - Nil, however units are subject to lock in period of three years Asset Allocation: Equity and equity related securities: 100 - 80%, Debt and Money Market Instruments: 20 - 0%. The NAV of the Scheme will be calculated and declared on every Working Day. The scheme provides sale / switch - in & repurchase /switch - out facility (subject to lock in period of 3 years) on all Business Days at NAV based prices. Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Reliance Tax Saver (ELSS) Fund is only the name of the Scheme and does not in any manner indicates either the quality of the Scheme; its future prospects or returns. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. Investment in Reliance Tax Saver (ELSS) Fund is subject to lock in period of 3 years from the date of allotment of units. The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The Mutual Fund is not assuring that it will make periodical dividend distributions, though it has every intention of doing so. All dividend distributions are subject to the availability of distributable surplus in the Scheme. For details of scheme features apart from those mentioned above and for scheme specific risk factors, please refer to the Scheme Information Document and KIM cum application form which is available at all the DISC / Distributors / www.reliancemutual.com . Please read the Scheme Information Document and Statement of Additional Information carefully before investing.

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CONTENTS

1

Equity Roundup ................................................................................................................. 2

Sector Update

FMCG ...................................................................................................................... 3

Result Update

Apollo Tyres Ltd ................................................................................................. 6

Bharat Electronics Ltd ................................................................................................. 7

Crompton Greaves Ltd ................................................................................................. 8 Dr. Reddy’s Laboratories Ltd ..................................................................................... 9

Forex Technicals .............................................................................................................. 10

Bullion Review ................................................................................................................. 12

Economic Insight ............................................................................................................. 14

Insurance Update ............................................................................................................ 16

Debt Overview ................................................................................................................. 18

UTI Mutual Fund Roundup ............................................................................................... 20

SBI Mutual Fund Roundup ............................................................................................... 21

Mutual Funds - A Roundup

Equity Oriented Funds ............................................................................................... 22

Debt Oriented Funds .................................................................................................. 24

Market Overview ............................................................................................................. 26

Mutual Funds Synopsis

Equity Funds .............................................................................................................. 28

Debt Funds ................................................................................................................ 32

Fixed Income Options ...................................................................................................... 33

Fund Factsheets

Equity Funds .............................................................................................................. 34

Balanced Funds ......................................................................................................... 35

Monthly Income Plans ............................................................................................... 36

Income Funds ............................................................................................................ 37

Gilt Funds .................................................................................................................. 38

Short Term Plans........................................................................................................ 39

Ultra Short Term Funds .............................................................................................. 40

Equity round-up

2

Date Days Open(Last Trade)

High(Last Trade)

Low(Last Trade)

Close(Last Trade) Change

11/19/2012 Monday 18349.53 18386.78 18256.07 18339.00 3011/20/2012 Tuesday 18422.69 18467.91 18255.69 18329.32 -1011/21/2012 Wednesday 18379.90 18478.50 18309.81 18460.38 13111/22/2012 Thursday 18510.94 18567.68 18456.20 18517.34 5711/23/2012 Friday 18543.95 18556.50 18402.38 18506.57 -1111/26/2012 Monday 18574.36 18590.33 18508.79 18537.01 3011/27/2012 Tuesday 18616.55 18862.70 18616.55 18842.08 30511/29/2012 Thursday 18873.63 19205.33 18873.63 19170.91 32911/30/2012 Friday 19229.70 19372.70 19186.30 19339.90 16912/3/2012 Monday 19342.83 19416.45 19257.3 19305.32 -3512/4/2012 Tuesday 19277.58 19373.94 19263.71 19348.12 4312/5/2012 Wednesday 19397.98 19463.25 19371.01 19391.86 4412/6/2012 Thursday 19475.09 19523.25 19186.24 19486.80 9512/7/2012 Friday 19514.88 19561.87 19363.13 19424.10 -6312/10/2012 Monday 19442.19 19478.01 19362.32 19409.69 -1412/11/2012 Tuesday 19466.29 19612.18 19285.29 19387.14 -2312/12/2012 Wednesday 19432.54 19478.79 19317.23 19355.26 -3212/13/2012 Thursday 19403.66 19421.72 19196.75 19229.26 -126

Sensex Movement November 19, 2012 – December 13, 2012

Pivotal Moves Company Open High Low Close Change

M & M 913.10 964.45 891.00 948.40 42.05Reliance Inds. 785.35 849.20 761.00 832.15 45.20Dr Reddy's Labs 1761.10 1912.90 1711.60 1874.20 97.60Bharti Airtel 273.09 340.95 280.50 311.95 32.15Jindal Steel 383.45 423.50 365.05 412.85 34.05Overseas IndicesDow Jones Ind Avg 12590.23 13329.44 12590.23 13245.45 655.22Hang Seng 21209.95 22563.14 21136.32 22445.58 1235.63Nikkei 9141.27 9767.05 9129.43 9742.73 601.46Shanghai Composite 2013.25 2088.64 1949.46 2061.48 48.23

The Indian equity markets bounced back in the month of November after seeing a correction in the previous month. The up-move in the markets was led by hopes of reform implementation, global liquidity and positive cues from Europe. Among the key economic indicators released during the month, headline inflation released for the month of October unexpectedly eased to its slowest pace in 8 months while the Industrial production contracted by 0.4% for the month of September on account of a dismal performance in the manufacturing and capital goods sectors. Further the Indian economy grew by 5.3% YoY for the quarter ending September. The RBI in its policy cut the CRR cut by 25 bps to 4.25%. Fiscal concerns continue as reflected in the fiscal deficit coming in at 71.6 % (7MFY13) of the Budgeted Estimates. On the global front, expectations that Greece will get bailout fund from the international lenders boosted the market sentiments.

During the month, the Foreign Institutional Investors (FIIs) were net buyers to the tune of ~R 8500 crs. All the sectoral indices ended on a positive note over the month barring Oil & Gas which declined by 1.2%. Consumer Durables, Realty and Bankex were amongst the outperformers registering gains of 15.8%, 12.8% and 7.8% respectively. Globally, world markets ended on a mixed note; the Japanese Nikkei and Indian Nifty were the top performers ending the month with gains of 5.8% and 4.6% respectively. Germany, Hong Kong, UK & US (Nasdaq) close with gains of 2.0%, 1.8%, 1.5% and 1.1% respectively. Among the losers, the Chinese and Indonesian markets fell the most, down by 4.3% and 1.7% respectively.

3

Sector Update Sector Update ITC, for example, is focusing on its premium brands and has developed a large portfolio of products including Fiama Di Wills, Choco Fills Dark Fantasy, Paperkraft notebooks and a host of other offerings for the luxury buyer. Jyothy Laboratories, after its acquisition of Henkel India, has healthy premium product portfolio in the fabric care segment.

As per a study conducted by Nielsen, low income value explorers and first-time modern trade shoppers will add $ 3 billion to FMCG sales in India by 2015. We believe FMCG players would maintain focus on the premium segment as a long-term strategy, because in the long run, consumers are expected to uptrade with rising awareness levels and aspirations. FMCG players are witnessing a clear shift in consumers’ buying behaviour from ‘need-based’ to ‘want-based’ purchases. Also, the demand for premium products is largely inelastic, or stable, compared to mass end-products where volumes come under pressure with slowdowns in economy. The second strategy is to create a new sub-category as the core category matures and intensity of competition increases. According to a study conducted by Nielsen India, brand extensions of existing FMCG brands are five times more successful than launching a new brand in India. In addition to promoting brand equity, brand extensions can increase incremental sales by up to 38% and contribute as much as 30% to the parent brand’s sales. We believe the launch of brand extensions would increase going forward, as it is more cost-effective compared to launching a new brand which involves higher costs in terms of R&D and advertising spends. However, by launching a variant, the company leverages on the existing brand equity of the base product and provides a value addition to the consumer.

2. Growth in organised retail FMCG players depend on modern trade as it provides them with benefits like phasing out of wholesaler margins,

economies of scale and better reach to the customers. Currently, FMCG companies derive ~ 8–10 per cent of their revenues from modern trade. Also, the lower penetration of modern trade in India provides them an edge while negotiating annual contracts with retailers, since share of traditional trade stores is still higher. However, with rising penetration levels of organised retail and expected influx of foreign investment on account of policy initiatives like FDI in retail, the strength of retail players is expected to rise.

Industry OverviewThe FMCG sector is the fourth largest sector in India with a total market size in excess of Rs 1807 billion, as of June 2012. The sector has seen a strong growth of ~15% in both rural and urban markets. Even during the period of economic slowdown in 2008–2009, the sector showed no signs of a downturn and maintained its double digit growth rate of ~14%. The key factors that have driven and kept the growth upbeat are: 1) Rising income levels with growth in economy; 2) Favourable demographics with rising working age populations/working women; and 3) Improved penetration with rising awareness levels and changing social habits among consumers in both rural and urban markets.

Key emerging themes/trends

1. Focus on premium products and launching brand extensions: Large FMCG players like HUL, GCPL, P&G and ITC are increasingly adopting two strategies to offset increasing competitive pressures: 1) Focus on premium products; 2) Launching brand extensions. The trend of increasing focus on premium products is now being seen across all major categories like the home and personal care segment, toothpastes, biscuits and other foods. The key factors driving this trend are: a) Rising aspiration levels of young urban consumers; b) Rising disposable incomes; and c) Increasing reach of modern trade. With the rise in economic status and improved lifestyle of the consumer, the demand for value-added and customised products has increased.

Source: Dabur Investor Presentation

Indian FMCG Industry

Category Key Comment

Biscuits Premium cream biscuits and cookies are growing 20-25% a year Contribution of Glucose and Marie to the biscuit market has slipped to around 55% from 65% in the past one yearLaunch of variants for Diabetic consumer (Nutrichoice)

Soaps Premium variants(Price > Rs 35) account for 40% of Big Bazaar sales

Personal Care Anti Ageing Creams & Launch of Mens personal care products

Health Drink Horlicks Gold(premium variant) has 3% value share of base horlicks

Chocolate Nestle to launch chocolate dessert priced at Rs 200

Breakfast foods Marico, Britannia and Pepsico are focusing on ready-to-eat products

Home Insecticides

Launch of Liquid – Fit to all machines

Source: Company Presentations, Media releases

4

Sector Update The two issues that are emerging from this are: 1) Rise of private labels; and 2) Conflict over margins. Retailers use national brands to attract consumers to their stores, create brand value for their stores and then divert consumers towards their private labels. The biggest advantage of private labels over branded products is low pricing (on the back of lower packaging and promotional expenses). Recently, Jyothy Laboratories had cut down its retailer margins which had impacted its volume growth for the quarter. We believe FMCG players will have to face pressures on margins on account of the above mentioned factors. However, in order to cushion margins, they need to focus more on innovation, product differentiation and brand pull strategy.

3. Quarterly results The FMCG sector’s Q2FY13 results were largely in line with

market expectations. The top line was driven by price hikes and volume growth. However, volumes had marginally moderated on account of a slowdown in Canteen Stores Department (CSD) sales. The slowdown was more in terms of discretionary spending on categories like food, paint and jewellery. Gross margins improved on the back of stable raw material costs and price hikes taken by companies. However, expansion of operating margins was relatively lower, on account of higher ad spends.

Going forward, we expect price hikes to remain muted, considering the rising competition and the slowdown in the domestic economy. We believe the volume growth of discretionary products will improve in FY14, as inflationary pressures start to ease. Gross margins are likely to remain healthy, considering the stable commodity prices. Consequently, we expect companies to utilise a part of their margin expansion to increase ad spends, in order to support the volume growth.

Source: Company Investor Presentation

Source: Capitaline

4. Valuations continue to remain expensive The FMCG sector has seen a strong growth in the past and

continues to sustain the growth trajectory. In the past one year, the FMCG Index has significantly outperformed the Sensex and the sector continues to trade at expensive valuations.

We believe the key reasons for markets giving such premium valuations to FMCG stocks are: 1) The buoyant domestic consumption; 2) High return ratios; 3) Debt free and cash-rich balance sheets; 4) Negative working capitals; 5) Healthy dividend payments; and 6) Strong corporate governance practices. Also, the sector has relatively low regulatory concerns.

Sector OutlookWe remain positive about the healthy growth in the FMCG sector, as we do not foresee any significant slowdown in domestic consumption. Though the current high inflation and slowdown in GDP growth can impact volumes in the near term, we believe companies with strong pricing power, robust distribution network, superior product mix and the ability to innovate and leverage their brand equity would continue to register strong growth. We had booked profits for ITC and Jyothy Laboratories considering the sharp run up in their stock prices and consequent expensive valuations. However, we maintain our positive outlook on ITC (in view of its diversified business model, pricing power in cigarettes, expected turnaround in the FMCG business and strong distribution network) and Jyothy Laboratories, the leader in fabric care (given its improved product mix and distribution that has come with the Henkel acquisition and a new management). So, any correction in stock prices can be a good opportunity to enter into these stocks.

5

Sector Update

Shareholding pattern as on September 30, 2012 (%)

Promoter 65.42FII 15.33DII 10.95Others 8.30Total 100.00

Source: Capitaline, Bloomberg

ITC Ltd

Background

ITC has a diversified presence in sectors such as FMCG, hotels, paperboards and specialty papers, packaging, agri- business, and information technology. While ITC is an outstanding market leader in its traditional businesses (cigarettes, hotels, paperboards, packaging and agri-exports), it is rapidly gaining market share even in its nascent businesses like packaged foods & confectionery, branded apparel, personal care and stationery.

View:Despite the steep hike in excise duty, ITC has delivered a robust performance (which was better than market expectations), led by the growths in its cigarette and FMCG businesses. We remain positive on the cigarette portfolio and expect the division to grow at 15%+ run rate going forward, considering its leadership position, strong distribution network and the recent ban on gutkha in a few states. Non-cigarette FMCG businesses continue to deliver strong growths, driven by favourable product mixes and strong branding exercises. The division is expected to break even by the end of FY13E which would boost margins and reduce its dependence on the cigarette business. The stock has seen sharp run in H1 and currently trades at expensive valuations of 32x FY13E. Thus, we maintain our ‘Hold’ recommendation, at the current levels.

Jyothy Laboratories Ltd

Background

Jyothy Laboratories Limited (JLL) is engaged in manufacturing and marketing fabric whiteners, soaps, detergents, mosquito coils and incense sticks. It operates in two segments: ‘soaps and detergents’ and ‘homecare’. The company has a distribution reach of ~2.9 mn outlets and a sales staff of 1800 people, serving ~3500 distributors.

View:Jyothy Laboratories’ Q2 results were disappointing in terms of top line growth, but bottom-line was largely in line with market expectations. In the first half, the company has undertaken many exercises in terms of adding to the management’s bandwidth, adopting new branding strategy, Henkel’s integration and consolidation of distribution channels. Though volumes were impacted in the quarter, we believe that the recent price hike and reduced trade margins would drive the operational performance. Also, any progress in terms monetisation of the Karaikal property to reduce debt, can act as a positive trigger for the company. The stock has seen a significant run up in H1, consequent to which we had reduced the weightages and booked profits in our model portfolio. It is currently trading at 34x FY13E & 22x FY14; hence, we maintain our ‘Hold’ on the stock, with a revised target price of Rs 158 (20x FY14E EPS of Rs 7.9) and recommend entry only at sharp corrections.

Valuation (PE)

FY11 FY12 FY13E45.4 36.9 32.1

Valuation (PE)

FY11 FY12 FY13E41.9 71.6 33.0

Shareholding pattern as on September 30, 2012 (%)

Promoter -FII 18.32DII 33.78Others 47.90Total 100.00

Company RoCE (%)

RoE (%)

D/E Cash + Investment(Rs mn)

Div Yield(%)

PE(x) FY13E

PE(x) FY14E

HUL 86.8 86.9 0.0 42,682 1.8 39.1 34.3

ITC 50.6 35.1 0.0 91,355 1.9 32.0 28.0

Marico 27.0 34 0.6 4,544 0.4 34.3 28.2

GCPL 19.7 25.7 0.8 15,630 0.9 33.7 27.0

Jyothy Lab 8.6 6.0 0.5 677 1.6 34.0 22.0

Valuation Table

Result update

6

Apollo Tyres Ltd reported a strong set of numbers with consolidated revenues increasing by 17.5% YoY to ` 33.7 bn, on the back of price hikes and an improved product mix. The consolidated performance saw healthy contributions from the domestic and European businesses, which grew by 28% and 8.7% YoY respectively. Operating margins improved by 253 bps YoY to 10.9%, on the back of the decline in raw material costs. Consequently, Operating profits grew by 53.2% YoY to ` 3.6 bn. PAT grew by 96% YoY to ` 1.5 bn, led by a strong operational performance and higher other income. The consolidated EPS came in at ` 3.0, compared to ` 1.5 in the corresponding quarter last year. On a standalone basis (India operations), net sales were

• Segmental performance: The company’s top line growth was driven by its strong performances in the domestic and South African operations. The Indian operations reported a revenue growth of 22.8% YoY to ` 22.8 bn, driven by a 20% volume growth and price hikes. The South African operations (Dunlop) saw a revenue growth of 29.5% YoY, on the back of higher exports. Despite the challenging environment, the Netherlands based subsidiary VBBV (Vredestein) reported a 6.7% growth in top line and its margins improved on the back of a favorable product mix. The management has indicated that winter sales for Europe have been good and expects demand to be healthy going ahead.

Apollo Tyres Ltd Result Update – Q2FY13

Market Performer (R 86)52-wk H/L: R 102/54

up by 24% YoY to ` 22.8 bn, and PAT grew by 240% YoY to ` 0.75 bn, led by a higher operating profit (up 81% YoY, on the back of improved margins) and higher other income.

Apollo Tyre’s Q2 performance was above market expectations. Going forward, with the ramping up of the Chennai facility and rubber prices remaining stable, we expect the company’s performance to remain healthy. The script has been under pressure as markets have been awaiting further clarity on the capex and fund raising plans, in terms of the pricing and timelines. We maintain our Buy recommendation on stock, with a target price of ` 103 (8x FY14E EPS of ` 12.8)

Earnings Summary (Consolidated)

Y/E Sales Growth EBITDA Margin Net Profit EPS Growth P/E Div. Yield31-Mar RBn (%) RBn (%) RBn R % X %

11A 89 9.2 10 10.9 4 8.7 -32.6 9.9 1.212A 122 37.1 12 9.6 4 8.1 -6.9 10.6 0.813E 140 15.0 14 9.7 5 10.8 33.2 8.0 1.014E 154 10.2 15 9.7 6 12.8 18.3 6.7 1.0

Quarterly Results Table RBnParticulars 2QFY13 2QFY12 % Chg YoY H1FY13 H2FY12 % Chg YoYNet Sales 33.75 28.71 17.5 65.4 56.9 14.9Operating profit 3.67 2.40 53.2 7.2 4.7 52.1OPM (%) 10.9% 8.3% 11.0% 8.3%Other Income 0.14 0.07 0.2 0.2Depreciation 0.91 0.78 1.8 1.5Interest 0.83 0.69 1.6 1.3Profit Before Tax 2.1 1.0 108.4 4.0 2.0 95.8Tax 0.5 0.2 1.1 0.5Profit after Tax 1.5 0.8 95.7 2.9 1.5 87.4Shares (mn) 504.1 504.1 504.1 504.1EPS 3.0 1.5 95.7 5.8 3.1 87.4

• Rubber prices: Natural rubber prices have dropped sequentially and currently are hovering around ~ ` 180/kg. The management expects rubber prices to remain stable and in the range of `170–190/kg.

• Fund raising: The company, at its board meeting, has approved a plan to raise funds through a QIP of up to USD 150 mn and allotment of preferential convertible warrants of up to 27.5 mn to the promoter group. While the timeline and pricing have not been stated by the company, the management has indicated that funds will be used for Greenfield expansions and inorganic opportunities. The company plans to go for Greenfield expansion in the ASEAN region where it has seen strong growth.

Result update

7

reSUlt Update

Bharat Electronics Ltd (BEL) has reported a weak set of numbers for Q2FY13. The company has reported revenues of ` 10.63 bn, i.e., down by 1.7% YoY, largely on account of execution of fewer defence related orders. The revenue growth was also impacted because of the blacklisting of Rheinmetal AG which was expected to deliver revenue of R 7– 8 bn over the next few years. The company reported a negative EBITDA of R 101 mn, against a positive of R 620 mn in the same period last year. Operating margins stood negative at 1%, on account of the increase in RM/Sales proportion by 516 bps YoY to 49%. This was on the back of a lower composition of defence and value-added orders. Other expenses/sales increased by 225 bps YoY to 11%, due to the unfavourable currency movement. ‘Other income’ grew by ~2.2% YoY to R 1.4 bn which cushioned for the negative EBITDA. Overall, the company posted a 35.8% YoY

Highlights• EBITDA margin to improve in 2HFY13E: The EBITDA margin

saw a major contraction during the current quarter. However, the management has guided to an increased share of defence related orders and other value-added orders which will drive the margins in 2HFY13E.

• Maintains revenue guidance: The management maintains a revenue target of ` 63 bn on the back of an expected traction in

Bharat Electronics Ltd Result Update – Q2FY13

Market Performer (Rs 1183)52-wk H/L: R 1666 /1125

de-growth in PAT at ` 802 mn. The EPS for the quarter stood at ` 10.03, vis-a-vis ` 15.6 in the same period last year.

We maintain a positive view on the company, on the back of its healthy order book, its strong ability to generate cash flows and zero debt status. The government’s thrust on defence is going to keep domestic order flows strong in the long run, while the offset clause is likely to provide a boost in earnings. We have introduced the FY14E numbers: at a CMP of ` 1230, the stock trades at 15.4xFY13E EPS of ` 109.1 and 13.6xFY13E EPS of ` 123.9. We maintain our ‘Buy’ recommendation, with a target price of ` 1953 on the stock, which is 10x FY14E (after adjusting cash per share of ` 714/share).

Earnings Summary

Y/E Sales Growth EBITDA Margin Net Profit EPS Growth P/E Div. Yield31-Mar RMn (%) RMn (%) RMn R % X %

11 55,925 8.0 10,092 18.0 8,615 107.7 16.4 11.0 1.012 57,568 2.9 5,541 9.6 7,563 94.5 (12.2) 12.5 1.413E 63,010 9.5 7,858 12.5 8,730 109.1 15.4 10.8 1.714E 71,617 13.7 9,611 13.4 9,913 123.9 13.6 9.5 1.7

Quarterly Results Table RMnParticulars 2QFY13 2QFY12 % Chg H1FY13 H1FY12 % ChgNet Sales 10,636 10,823 (1.7) 18,605 10,823 71.9Operating Profit (101) 620 (1,164) 620OPM (%) -1.0 5.7 -6.3 5.7Other Income 1,444 1,413 2.2 3,077 1,413 117.8Depreciation 309 294 615 294Interest 0.2 1.4 3.3 1.4Profit Before Tax 1,034 1,737 (40.5) 1,294 1,737 (25.5)Tax 232 487 299 487Profit after Tax 802 1,250 (35.8) 995 1,250 (20.4)EPS 10.0 15.6 (35.8) 12.4 15.6 (20.4)

clearances and increased activity from the Ministry of Defence. The company has maintained an order book of ~` 260 bn.

• Outlook: Going ahead, the management has indicated at

working for strategically important projects in the areas of weapon systems, electronic warfare systems, ship borne systems, coastal surveillance systems, network centric systems, night vision devices, satcom and communications which will drive the revenues.

Result update Result update

8

Crompton Greaves reported a weak set of numbers for Q2FY13. Its net sales grew by 8.1% YoY to R 29.24 bn, on the back of growth in its consumer segment and 9% currency depreciation. The EBITDA de-grew by a significant 39.6% YoY to R 1.36 bn. Consolidated EBITDA margins saw an erosion of 369 bps YoY to 4.7%, largely on the back of a R 105 mn loss in its international business (in the Belgium plant) and a fall in domestic business margins. Other income remained flat at R 208 mn, against R 215 mn in Q2FY12. Interest cost increased by 86% YoY due to the rise in debt levels on account of the ZIV acquisition. The tax rate during the quarter was significantly higher at 49.4%, against 28.1%. The management has highlighted that the higher tax is due to unavailability of set offs on losses and imposition of full tax on profits in various geographies. The lower EBITDA, higher interest and higher tax rates led to a 64% YoY fall in PAT, at R 420 mn. The EPS for the quarter stood at R 0.7, against R 1.8 in Q2FY12. The company has declared a 20% interim dividend which is R 0.4/share. The consolidated order intake was +14% YoY at R 26 bn, and the order backlog stands at R 94 bn, up by 32% YoY.

Power segment: Power was the worst performing segment with a revenue growth of just 1.2% YoY at R 17.82 bn. This was largely on the back of the lower growth in overseas markets, especially Europe. EBIT margins witnessed a large dip of 474 bps YoY to 0.6%, largely on the back of the competitive pressures in the domestic and overseas markets and losses in the Belgium division. The company is hopeful of an improvement, in view of sustained order inflows in the renewable sector (offshore, wind and solar) in both the domestic and overseas markets. Of the order backlog R 87 bn, (93%) is from the power segment. Within the power segment,

Crompton Greaves Ltd Result Update – Q2FY13

Market Performer (R 111)52-wk H/L: R 167/102

The management has lowered its guidance for FY13, with an expected revenue growth of 8–10%, from 12–14% earlier, and an EBITDA margin of 5% from 8–9% earlier. The downward revision is on account of the ongoing restructuring at its Belgium plant which is impacting production and higher costs. The management has emphasised that a strategic plan to improve margins by 450 bps through various projects is on track and the management expects double digit margins once the exercise is complete. Due to the company’s weak performance in Q2FY13, we have reduced FY13E estimates and introduced FY14E numbers. We think that the company is taking various steps to improve long-term profitability. Also, a strong order intake and consequent revenue visibility provides leverage to the company to bid for new orders at better margins. We continue to remain positive on the company and recommend a Buy with a revised target price of R 137 which is 15xFY14E.

Earnings Summary (Consolidated)


11 100 9.5 13 13.4 9 14.2 10.7 7.8 1.612 112 12.4 8 7.1 4 5.8 (59.1) 19.2 1.713E 124 10.3 7 5.5 3 5.4 (7.6) 20.6 1.714E 137 10.5 10 7.5 6 9.2 70.1 12.1 1.7

Quarterly Results Table (Consolidated) RMnParticulars Q2FY13 Q2FY12 % Chg 1H FY13 1HFY12 % ChgNet Sales 29,242 27,055 8.1 57,353 51,433 11.5Operating Profit 1,365 2,260 (39.6) 3,032 4,078 (25.6)OPM (%) 4.7 8.4 5.3 7.9Other Income 208 215 400 366Depreciation 544 726 1,010 1,334Interest 190 102 289 212Profit Before Tax 838 1,646 2,133 2,899Tax 414 463 859 938Adjusted PAT 420 1,167 (64.0) 1,280 1,961 (34.8)EPS 0.7 1.8 2.0 3.1

60% of this backlog is from international markets and the balance is from the domestic market.Consumer segment: The segment posted a strong growth of 21.7% YoY in revenues at R 5.8 bn, on the back of the momentum in the Fans and Lights segment. However, the EBIT margin witnessed a contraction of 178 bps YoY to 9.5% due to an unfavorable product mix. Crompton has enhanced its leadership position in the fan segment by 100 bps to 23.5% of the market share by focusing on the premium segment and with addition of retailers (3900).

Result update Result update

9

Dr. Reddy’s reported a strong set of numbers with net sales increasing by 27% YoY to R.28.81 bn; this growth was driven by the robust growth in the Global generics and PSAI (Pharmaceutical Services & Active Ingredients) division. The Global generics division grew by 24.6% YoY to R 20.1 bn and the PSAI segment grew by 32.7% YoY to R 7.87 bn. EBIDTA margins for the quarter improved by 324 bps YoY to 24%, on the back of the lower selling and administration expenses (on account of lower spends in the Russian market). Consequently, the operating profit was up by 46.9% YoY to R 6.9 bn. The reported PAT grew by 32.4% YoY to R 4.07 bn which includes goodwill impairment charges of R 688 mn on its Italian operations and a forex gain of R 338 mn. The EPS for the quarter came in at R 24.0, as against R 18.2 in Q2FY12.

• Segmental performance: The growth in revenue in the global generics segment was led by a strong growth in the US market. The US generics business grew by 47.4% YoY, on the back of the strong performances by key limited competition products (Ziprasidone, Tacrolimus, Fondaparinux ) and also due to the launch of four new products during the quarter (Atorvastatin, Metoprolol, Montelukast family and Amoxicillin). The revenue from domestic operations grew by 12.1% YoY, on the back of the healthy volume growth across key brands and a 24% YoY growth in the biosimilars portfolio. The Russian & CIS markets grew by 14% YoY, impacted by sales deferments. The European market continued to remain under pressure with a 16.1% YoY decline

Dr. Reddy’s Laboratories LtdResult Update – Q2FY13

Market Performer (Rs 1852)52-wk H/L: R 1913 /1528

Dr Reddy’s Laboratories Q2FY13 results were better than market expectations with the company maintaining its growth trajectory in the US market. We remain positive on the company’s growth in the US market, led by its strong product portfolio (30 products are ranked in the ‘Top Three’ category, in terms of market share) and an improved market share from new launches. The product pipeline continues to remain strong with 63 ANDA’s awaiting FDA approval. Also, the company has been relatively less impacted by the recommended drug pricing policy. Thus, we maintain our Buy recommendation on the stock, with a price target of R 2002 (19x FY14E).

Earnings Summary ( Consolidated)


11A 74.7 6.3 15.7 21.0 11.0 65.3 - 28.4 0.412A 96.7 29.5 23.7 24.5 14.3 84.2 28.8 22.0 0.413E 112.2 16.0 25.8 23.0 16.1 95.1 13.0 19.5 0.414E 129.0 15.0 28.4 22.0 17.9 105.4 10.8 17.6 0.4

Quarterly Results Table Consolidated) R BnParticulars Q2FY13 Q2FY12 % Chg YoY H1FY13 H1FY12 % Chg YoYNet Sales 28.8 22.7 27 54.2 42.5 28Operating Profit 6.9 4.7 47 11.9 8.7 37OPM (%) 24% 21% 22% 24%Other Income 0.4 0.3 0.7 0.5Depreciation 1.4 1.3 2.7 2.5Interest 0.0 0.2 0.0 0.4Profit Before Tax 6.3 3.6 10.1 6.5Tax 1.6 0.6 1.9 0.8Adj PAT 4.8 3.0 60 8.1 5.7 41Excp 0.7 -0.1 0.7 0.0Reported PAT 4.1 3.1 32 7.4 5.7 30Shares (mn) 0.85 0.85 0.85 0.85EPS 24.0 18.2 32 84.2 65.3 29

in revenue, on account of the 11% YoY decline in revenues in the German operations. The growth in the PSAI segment was ahead of market expectations; it was led by a strong growth in the CRAMS business. The management expects the growth trajectory of the PSAI segment to continue in H2FY13.

• Management guidance: The management has reiterated its revenue guidance of US$ 2.5–2.7 bn for FY13, which is to be driven by new launches in the US market. The company remains confident on a healthy growth in the Russian market in H2FY13 and expects its domestic operations to grow at the industry rate.

Forex Technicals

10

EUR/USD USD/JPY has broken long term downtrend line in place since 2007. In dailies, 50 DMA has again come above 200 DMA recently. And in weekly, the pair is significantly above Ichimoku cloud, first time since Apr-2012. Next target on upside is 84.17, high so far in 2012 traded in March this year. 80.22 – 50 DMA and 79.90 – 200 DMA are two important support levels, which need to be held to maintain the upside momentum.

USD/JPY

Short term technical picture looks very similar to one in EUR/USD. Break of downtrend line did not sustain for long and with falling sto-chastics some crucial support levels are now eyed. Look for a test of 1.5975-1.5985 support zone followed by 200 DMA at 1.5866. Sustained break above 1.6050 is needed in the form of at least one weekly close above that level to negate bearish outlook.

GBP/USD USD/INRUSD/INR has broken the uptrend line off early Oct low of 51.3500. However, in dailies, stochastics have now started to rise again in-dicating limited downside in short term. On down side, 53.8750 in the form of 50 DMA is the first important support levels followed by 53.75 which happens to be 200 DMA. On upside, 54.80-85 region should provide resistance initially, followed by 55.2000.

EUR broke the downtrend line drawn off Mar, Sep and Oct highs, however, the gains could not be sustained. This brings downside support levels back in to focus. They are: 1.2916 – 50 DMA, 1.2894, 50% retracement of 1.2660 – 1.3127 move, 1.2810 uptrend line support from July and 1.2785 – 200 DMA). Falling stochastics also favour downside in short term. As long as the pair does not break 1.3040 on upside, it is likely to target 1.2660, Nov low.

Bullion Review

12

BUllion review

On the other hand, demand from the other Asian giant, China, has reportedly been strong. The Chinese gold demand has consistently grown to over 20% in the last five years. With a combination of demand for jewellery and investment, coupled with pro-gold policies, China is all set to capture the major chunk of the bullion market. The Chinese Ministry of Industry and Information Technology has recently announced the country’s plan to double its gold consumption by 2015. The Chinese are known to be smart investors, and given the gigantic size of their economy and robust purchasing power, the bullion, as an asset class, is likely to remain attractive in the years to come.

Global Gold ETF holdings continue to remain at record levels and continue to pose a strong challenge against the bearish argument on gold. In the last few years, gold ETFs have been one of the strongest catalysts in global gold demand, with investors holding over 2600 tonnes of gold in the form of ETFs. Central banks (official sectors) continue to diversify their reserves into gold, taking the total purchases made in 2012 to about 450 tonnes. Among the major global central banks, the US holds 75% (8133 tonnes) of its foreign reserves in gold,, France holds 71.77% (2435 tonnes), Italy holds 72% (2451 tonnes), and Germany 72% (3395). On the other hand, the central bank in China holds only 1.7% (1054 tonnes) of its reserves in gold and India holds 9.9% (558 tonnes).

Projection Gold prices are still flirting with the 100-day moving average of around $1700/ounce. While cautioning about a thin liquidity condition in December ‘12, we continue to believe that gold is currently trading in a “buy zone”. A weekly close below $1700/ounce opens some downside risk (not below $1660/ounce). We see prices trading between $1670 – 1750/ounce range. The $1800/ounce mark needs to be targeted by this year-end or early 2013, in order to keep the bull momentum going. The outcome on the US fiscal cliff is a short-term catalyst to watch out for. Disclaimer: This communication is for informational purposes and is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to therein. This is not a recommendation, offer or solicitation to buy or sell any instrument pertaining to any asset class including, but not limited to currencies, interest rates, commodities and equities in underlying market or any form of derivatives on any of them or a combination of any of them. Neither HDFC Bank Ltd. (including its group companies) nor any employees of HDFC Bank Ltd. (including those of its group companies) accepts any liability arising from the use of this communication.

Monthly Gold View During the month, bullion prices remained in the $1700–1753 range and behaved in isolation, baffling one and all about its direction. Amid a better performance by risk assets, gold has felt the pinch of late, crashing down to below $1700/ounce. Investors’ penchant for the yellow metal has certainly dipped in the last fortnight, given the sanguine mood in the financial markets that led to a preference of other asset classes over this non- interest bearing asset (although this downside view on gold may turn out to be short lived). Interestingly, gold prices have decoupled from the historically positive correlative currency, the euro, and despite of weakness in the dollar index, prices continue to remain soft. However, it would be pre-emptive to term the recent sell-off as a “bearish signal”, particularly in a world where assets have remained vulnerable and failed to hold investors’ confidence for a reasonably good period.

Having witnessed a robust demand during this festive season (October – November ‘12), the demand from the Indian bullion market is likely to be better than expected in 2012. Then World Gold Council has upwardly revised India’s import target to 800 tonnes from its previous estimate of 650-750 tonnes. Indians are a different class, as far as buying gold is concerned. Unlike investors in the west, or in China, who use gold as a pure inflation hedge and buy it as a store of value, Indian buying is mostly consumer-driven and owning gold is still considered a sign of prosperity and cultural affinity. And it is encouraging indeed to see the response of Indian gold consumers at a price of 32000/10 gm. Regardless of their awareness about global demand dynamics, they continue to naturally hedge their wealth by buying gold.

11-Dec-12 High Low USD - 1708.20 1749.80 1679.25INR - 31832.00 32468.00 30293.00

Gold Movement in November 2012

Source : Bloomberg & MCX

Economic insight

14

The recently released Q2FY13 GDP data printed in at a growth rate of 5.3% and was broadly in line with market expectations of 5.4%. Today’s reading marks a slowdown over the 5.5% print recorded in Q1FY13. However, chances are that this could be the bottom of the growth cycle and a favourable base could see GDP growth move higher, albeit only slightly. On balance, our FY13 growth expec-tations remain unchanged at 5.5%, underscoring the fact that while market sentiments could have turned around, the real economy still has some catching up to do.

Table 1: GDP Growth by Sector (in % YoY)

We present below a few questions that we believe could be play-ing on the market’s mind after the Q2FY13 GDP release, and tie up what the data really means.

Q: The headline GDP growth reading has come in line with ex-pectations, but do the GDP internals hold surprises?

A: While the headline GDP growth has come in line with ex-pectations, the sectoral GDP breakdown has taken us a little by surprise. At 1.2%, the agricultural growth reading has come in a tad below our expectations and it is likely that the sector could see further pressure as the impact of the weak monsoon rainfall this year on the summer season crop harvest becomes visible in H2FY13. The slack from agriculture, however, has been picked up by services which has surprised to the upside. This is largely because of the stronger-than-anticipated growth in community, so-cial and personal services, reflecting a pickup in government spend-ing. This, incidentally, is also visible in the expenditure breakdown of the GDP which shows a government consumption growth hold-ing firm at close to 9.0% in Q2FY13. While trade, transportation and

Three questions you wanted to ask about Q2FY13 GDP growth but were afraid to ask

communication services has gathered pace from 4.0% in Q1FY13 to 5.5%, this could have been supported by a favourable base. Meanwhile, even as the broader industrial growth print has been along expected lines, construction growth has disap-pointed with a reading of 6.7%. This is at odds with the strong growth reading in both cement and steel output in July-September, and it is possible that the construction estimate could be revised higher in subsequent revisions. The drag from construction on in-dustrial growth has, however, largely been offset by a stronger-than-expected growth in manufacturing activity. At 0.8%, while manufacturing growth is hardly anything to write home about, it is stronger than the 0.2% reading that the provisional monthly IIP estimates indicate.

Q: Where to from 5.3%?A: The next question that follows is where do we see growth, going ahead? Given that most of the government measures that

boosted market and investor sentiments were announced only in the middle of Septem-ber, their impact on the real economy would become vis-ible only over H2FY13. Our sense is that growth could indeed have bottomed out in Q2FY13, but it is unlikely to move much higher from the current levels, stabilising at a sub-trend rate of 5.6–5.7% over the remainder of FY13.

While a favourable base could support (GDP growth

fell from 7.3% in H1FY12 to 5.7% in H2FY12) growth in the second half of the year, the sequential pickup from the current levels could be modest at best.

• Anecdotalevidenceindicatesthattherehasbeensomepickupin infrastructure linked capex activity in areas such as roads and power, but private capex still remains very subdued. While investment growth has shown a pickup to 1.5% (excluding in-vestment in valuables such as gold, the investment growth rate is 4.0%) in Q2FY13, this is largely because of a supportive base with investment growth having fallen from 13.2% in Q1FY12 to 5.0% in Q2FY12.

• Further, as the full impact of the deficient monsoon on thesummer season crop becomes visible in H2FY13, agricultural growth could disappoint and further impact rural consumption. Private spending has remained subdued in Q2FY13, falling from a growth rate of 4.0% in Q1FY13 to 3.7% in Q2FY13. With ru-ral demand remaining under pressure, it is likely that private consumption could remain weak in the remainder of FY13.

economic inSight

Economic insight

15

Lastly, with global growth remaining weak, export growth is likely to remain depressed, creating additional pressure on both industrial and service sector activity.

• Netexportgrowth(i.e.,exportgrowthlessimportgrowth)has

actually contracted by 2.2% in Q2FY13, against a pickup of similar magnitude a quarter ago.

FY14, however, could look slightly better. Some upside surprises to global growth are likely if the fiscal cliff in the US is avoided and growth in China recovers from the current levels. While this could support export growth, greater traction in infrastructure awarding activity by the government, as well as possible monetary easing by the RBI, could push up investment. Assuming a normal monsoon and a favourable winter crop harvest in FY13, agricultural growth could recover to its trend rate of 3.0–3.5% and provide support to rural demand. This, along with easing effective lending rates, could push up private spending and pull up growth to the 6.3–6.5% levels in the next fiscal.

Q: Will the GDP release compel the RBI to ease policy rates sooner than expected?

A: While today’s GDP reading reiterates the view that growth re-mains subdued and below trend, it does reflect the fact that the pace of this deterioration has stabilised and that the weakness in growth is not unduly sharper than anticipated. On the other hand, even as headline inflation has eased from 7.8% in September to 7.5% in October, it is likely to move higher in the near-term (close to 8.0% by December), as the full impact of the fuel and electricity tariff increas-es earlier this year become visible. Along with the fact that there is considerable uncertainty surrounding the sustainability of the gov-ernment’s “reform” push, as well as the prospect of fiscal slippage, we believe that the RBI is likely to maintain the key policy rates steady in its next review in December. Policy easing, however, is likely in January, as the core inflation moderates in Q4FY13 in re-sponse to subdued commodity prices and weak domestic demand, and pulls down headline inflation to close to 7.5% by March, 2013. In the meantime, the central bank is likely to continue with monetary accommodation through OMO buybacks, injecting R 50,000–60,000 cr into the system.

16

inSUrance - Update

• Choose a plan that offers a mix of investment options and adequate risk cover – Make sure you invest in a child plan which offers a balanced mix of growth & debt funds and option of risk cover. Empirically, equities give the best returns in the long run. Make sure that insurance plan that you choose offers you the right mix of capital protection and growth. Also, choose a plan that has the systematic transfer option to make sure your gains in the investment are protected. Lastly, take adequate risk cover (atleast ten times the annual premium) to ensure that the death benefit is a substantial lumpsum that can help your family in case of your demise.

• Read the product brochure and understand the costs of the product: Insurers lay out the charges that the customer needs to pay for the policy clearly in the product brochure. Compare the products available in the market on their charges, fund performance, the reputation of the insurer, repudiation rates (available on the websites), flexibility offered and their service quality perception.

One of the unique features offered by ULIPs is top-ups. Parents can invest their bonuses, extra incomes, gifts on child’s birthdays to the policy as a top–up on the base premiums that they are paying on the existing ULIP. This feature offers twin advantages; firstly it will boost the investment and fast track achievement of goal earlier than planned. Secondly, it will help enhance the life cover giving extra protection.

Funds are often needed at periodic intervals to fund school, college, higher education and marriage expenses. The payout years should be timed as per the age of the child. For example a child in class 10th may need funds after 5 years for higher education. There are plans in the market offering regular payouts or offering withdrawals free of cost. These payouts also can be used for expenses related to holistic development of child such as art, dance, sports, extra tutorials, electronic gadgets etc. These policies also pay lump sums at the end, which can be used for major expenses like college fees or marriage expenses.

(This article is given by Amitabh Chaudhry, MD & CEO, HDFC Life)

Research reveals that saving for child’s education and marriage are the two most important financial goals parents consider while purchasing Children’s Plans. Children’s Plans usually cover the parents’ lives with the child as the beneficiary. There are few plans in the market that offer an entry age of 30 days for a child. However, the risk cover starts only after the child has attained the age of 7 (as currently offered in the plans available). These plans come in both variants – market-linked and non-linked.

Child ULIPs are goal-based and long-term financial instruments. They provide a wide range of opportunities – highest to lowest exposure to equity – based on an individual’s risk appetite. Few critical factors to keep in mind before purchasing a Child ULIP:

• Quantify your goals and choose a plan for long term – Insurance companies offer plans with maturity benefits structured to coincide with the child attaining 18 yrs or ‘timed’ release of payouts at critical lifestage from 18 yrs onwards. These plans offer a long horizon to invest, which helps you systematically build the corpus. So, quantify your goals and choose a plan that encourages such long-term behaviour. The investment horizon should be atleast 15-20 years. Plan available in the market offers customers to remain invested up to 30 years. This helps to average out the market volatility and offer better return over a period.

• Invest in plans that offer premium waiver benefit – Most child plans offer premium waiver benefit either as an option or as an essential feature in the main plan. What premium waiver does is this – in case of the death or disability of the parent, the insurer waives off future premiums to be paid while the insurer continues to fund the insurance policy till the maturity. This makes sure that the maturity benefit that was set for a certain age remains intact as planned in addition to the death benefit paid.

• Change in asset allocation as the goal approaches – the risk of capital getting eroded due to the market volatility is high at the time when the money is required for child’s education or marriage expenses, leaving inadequate savings. Hence it is very important to reallocate funds as one approaches the milestone i.e. one can switch from equity funds to debt funds gradually, which results in safeguarding funds and even locking gains from equity market. Some insurance plans offer this feature, which change the allocation automatically towards the end of the term. This is a very critical feature to de-risk a Child ULIP.

Choose Child ULIP for long term

GOOD BUYS

GREAT PRICESat

The Investment Philosophy of

The fund follows a value investment philosophy and aims to buy stocks with high growth potential at a discounted price.

Discovery FundDiscovery FundAn Open Ended Diversified Equity Fund

Returns of ICICI Prudential Discovery Fund - Growth Option as on September 30, 2012

Particulars Sep 30, 2011 to Sep 30, 2010 to Sep 30, 2009 to Since inception Sep 30, 2012 Sep 30, 2011 Sep 30, 2010 (August 16, 2004)

Absolute Absolute Absolute Current Value of CAGR Returns (%) Returns (%) Returns (%) Investment of ` 10,000 (%)

Scheme 24.17 -16.15 38.18 53,170.00 22.84

Benchmark 10.52 -22.59 36.51 38,021.79 17.87

S&P CNX Nifty 15.38 -18.02 18.61 35,664.57 16.95

NAV Per Unit (`) 42.82 51.07 36.96 10.00

Past performance may or may not be sustained in future and may not provide the basis for comparison with other investments. Date of inception:16-Aug-04. Benchmark is CNX Midcap Index. NAV as on September 28, 2012 is ` 53.17. 3 schemes managed by Fund Manager, Mr. Mrinal Singh. Performance of the other scheme managed by him is given below.

Performance of the other schemes managed by Mr. Mrinal Singh:ICICI Prudential Midcap Fund (Growth option): 12.48% - 1 year return as on 30-Sep-2012, -23.87% - 1 year return as on 30-Sep-2011, 41.29% - 1 year return as on 30-Sep-2010 and 15.81% return since inception (28-Oct-2004). Benchmark is CNX Midcap which performed 10.52% - 1 year return as on 30-Sep-2012, -22.59% - 1 year return as on 30-Sep-2011, 36.51% - 1 year return as on 30-Sep-2010 and 16.48% return since inception. S&P CNX Nifty performed 15.38% - 1 year return as on 30-Sep-2012, -18.02% - 1 year return as on 30-Sep-2011, 18.61% - 1 year return as on 30-Sep-2010 and 15.67% return since inception. Current value of Rs. 10,000 invested in the scheme since inception is Rs. 32,000.00 (Benchmark - Rs. 33,486.30 & S&P CNX Nifty - Rs. 31,683.24). NAV Per Unit: Rs. 28.45 as on 30-Sep-2011, Rs. 37.37 as on 30-Sep-2010 and Rs. 26.45 as on 30-Sep-2009. ICICI Prudential Technology Fund (Growth option): 26.08% - 1 year return as on 30-Sep-2011, -12.51% - 1 year return as on 30-Sep-2010, 43.38% - 1 year return as on 30-Sep-2009 and 5.49% return since inception (03-Mar-2000). Benchmark is BSE IT which performed 12.27% - 1 year return as on 30-Sep-2012, -11.30% - 1 year return as on 30-Sep-2011, 30.11% - 1 year return as on 30-Sep-2010 and -1.69% return since inception. S&P CNX Nifty performed 15.38% - 1 year return as on 30-Sep-2012, -18.02% - 1 year return as on 30-Sep-2011, 18.61% - 1 year return as on 30-Sep-2010 and 10.33% return since inception. Current value of Rs. 10,000 invested in the scheme since inception is Rs. 19,580.00 (Benchmark - Rs. 8,066.64 & S&P CNX Nifty - Rs. 34,440.22). NAV Per Unit: Rs. 15.53 as on 30-Sep-2011, Rs. 17.75 as on 30-Sep-2010 and Rs. 12.38 as on 30-Sep-2009. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. For computation of since inception returns the allotment NAV has been taken as Rs. 10.00 as may be applicable. Load is not considered for computation of returns. In case, the start/end date of the concerned period is nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. For schemes in existence for > 1 year < 3 years, performance provided for as many 12 months period as possible, for the quarter ended September 30, 2012. The NAV per unit shown in the table is as on the start date of the said period.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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Make an informed investment decision. Consult your Relationship Manager at the nearest HDFC Bank Branch

Debt Overview

18

Period Interest Rate (p.a)7 Days - 14 Days 3.50%15 Days - 29 Days 4.00%30 Days - 45 Days 5.00%46 Days - 60 Days 7.50%61 Days - 90 Days 7.50%91 Days to less than 6 Months 1 Day 7.50%6 Months 1 Day - 6 Months 15 Days 8.00%6 Months 16 Days 8.00%6 Months 17 Days - 9 Months 15 Days 8.00%9 Months 16 Days 8.00%9 Months 17 Days - 1 Year 8.00%1 Year 1 Day - 1 Year 15 Days 8.75%1 Year 16 Days 8.75%1 Year 17 Day - 2 Years 8.75%2 Years 1Day - 2 Years 15 Days 8.75%2 Years 16 Days 8.75%2 Year 17 Days - 3 Years 8.75%3 Year 1 Day - 5 Years 8.75%5 Year 1 Day - 8 Years 8.25%8 Year 1 Day - 10 Years 8.25%

Highlights: The liquidity deficit in the system continued to remain well above the RBI’s comfort level of 1% of NDTL and the R 1 tn mark, on account of a considerable increase in currency with the public, leading to leakages from the banking system. and government surpluses. The lack of government spending, on account of expenditure control, to rein in the fiscal deficit, added to the liquidity woes. However, citing sustained pressure on the system liquidity, the RBI conducted its first OMO for H2 FY13 on December 4, 2012, to the tune of R 116.4 bn. The second OMO was conducted on December 11, for a notified amount of R 120 bn. The OMOs along with some government spending towards November end, provided support to the liquidity in the system and the repo borrowing declined below R 1 tn. The average daily LAF for the period stood at R 891 bn. Call rates remained above the repo rate, on account of the tight liquidity conditions and traded in the range of 8 – 8.15% during the period. The yields at the shorter end of the curve also rose gradually despite the infusion of liquidity. The 3-month CD yield hardened and closed at 8.47%. The yield on the 6-month CD closed at a level of 8.72% and the yield on the 1 year CD closed at 8.75%.Government securities yields remained range bound during the period and traded in a broad range of 8.17 –8.23%. The yields declined after the release of the IIP for September 2012 which contracted to -0.40%, raising hopes of a rate cut by the RBI. Worries of the government overshooting the revised fiscal deficit target of 5.3% also kept yields under pressure. However, after the announcement of the first OMO for H2 FY13, the yield declined to 8.17% and stayed at that level for the rest of the period, amidst lack of fresh triggers. Bank credit grew by 16.9% at the end of 23 November 2012 on a YoY basis, as against a15.5% growth seen in October. In the absence of credit growth, banks naturally increased their investment in bonds. As per the RBI, the credit to industry increased by 15.2% in October 2012, as compared to 23.1% in October 2011; and credit to agriculture increased by 22.9 per cent in October 2012 which was up from 7.1% in October 2011. The fiscal deficit for the period April – October 2012 reached about 71.6% of the total budget of R 5.13 lakh crores for FY13. During the same period last year, the fiscal deficit was slightly higher at 74.4%. The trade deficit eased marginally in November 2012 to $ 19.3 bn. compared to $ 21 bn. in October 2012.The WPI for November 2012 came in lower than expectation at 7. 24% as compared to 7.45% for October 2012. The consumer price inflation for November 2012 stood at 9.9% as compared to 9.75% for October 2012.

Future Outlook :The liquidity in the system is expected to remain tight on account of advance tax outflows and lower government spending. This would lead call money rates to remain above the repo rate levels. The RBI has announced OMOs to ease liquidity conditions, but short term rates are expected to remain firm. G-sec yields are expected to decline over the medium term and track the OMO announcement by the RBI in the near term. The market would be looking at the progress in the government’s disinvestment programme and also at its efforts to control the fiscal deficit. The RBI is expected to take some more liquidity easing measures in its mid-quarter policy scheduled on December 18, 2012. In December ‘12, the government is expected to raise R 36,000 crores through G-secs. However, the RBI would continue to announce OMOs over the next few months as the liquidity conditions. This should provide support to Gilt prices at lower levels. The RBI has anticipated that over the next few months the inflation rate is expected to rise before it eases in Q4 FY13. While risks to this trajectory remain, the RBI has stated that the baseline scenario suggests a reasonable likelihood of further policy easing in the fourth quarter of 2012–13.

Indicative Quotes

March ’13 T Bill 8.19%June ’13 T Bill 8.14%

The above rates for amounts below R 1 cr. Above rates areas on December 15, 2012.(There are differential rates for Senior Citizens)HDFC FD - (12-23 months) – 8.55% (Reg. Monthly Income)

Key Rates Current 1Mth ago 6 Mth ago 1 Yr ago1-yr G-Sec 8.08% 8.13% 7.84% 8.28%5-yr G-Sec 8.12% 8.18% 8.14% 8.46%10-yr G-Sec 8.15% 8.21% 8.04% 8.53%5-yr AAA Bonds 8.97% 9.00% 9.26% 9.44%

HDFC Bank FD Interest Rate (p.a.)

Government Securities Yield Curve

G-sec yields declined across the curve on the back of positive sentiments, after the announcement of OMOs. The yield on the 10-year G-sec declined by 3 bps in November, compared to October 2012. The yield on the 1-year G-sec declined about 7 bps, while that on the 5-year G-sec declined by 6 bps. The spread between the 1-year and 10-year G-secs reduced to 7 bps, as against 8 bps in the previous month. The spread between the10-year and 24-year G-secs also widened to 24 bps, as compared to 18 bps seen previously.

November 15 – December 15, 2012

Yields Call Rates range for November ’12 –December ’12 High – 8.15%

Low – 8.05%

HDFC Bank Recommendation: Aggressive investors should look at adding duration to their portfolios, with an investment horizon of 15 months to two years, as yields are expected to decline over the next one year. We continue to recommend investment in short term income funds, as the yields are expected to decline over the medium term. Conservative investors can also look FMPs, in order to lock in better yields currently available in the fixed income markets, as the yields at the shorter end of the curve have gone up.

Uti mUtUal FUndS - a roUnd-Up

Equity Oriented Funds and Hybrid Funds As on November 30, 2012

Equity Funds

20

Name of SchemeInception

DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepBSE 100 11.81% 19.25% 22.23% 4.55% -

BSE 200 11.90% 19.05% 22.28% 4.30% -

CNX Midcap 15.10% 18.25% 22.50% 4.42% -

UTI Opportunities Fund 20-Jul-05 32.0300 11.95% 19.38% 23.88% 11.45% 17.11%

UTI Mid Cap Fund 1-Jun-98 35.0700 14.05% 18.88% 25.35% 10.55% 16.85%

UTI Mastershare 19-Sep-86 57.4800 9.65% 18.15% 18.97% 7.16% 12.82%

UTI Equity Fund 20-Apr-92 61.8600 10.76% 19.86% 24.79% 9.53% 11.21%

Index Funds

Note: Return figures are absolute for less than one year period for all funds. Moreover, past returns cannot be taken as ‘an indicator of future performance. All NAVs and return calculations are for the growth oriented plans. As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f. October 1, 2012.

Balanced Funds


DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepNSE Nifty 10.63% 18.77% 21.62% 5.32% - UTI Nifty Fund 14-Feb-00 36.7405 10.64% 19.88% 22.21% 5.31% 10.70%


DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepCrisil Balanced Fund Index 7.70% 13.77% 17.60% 6.19% - UTI Balance Fund 20-Jan-95 86.6100 10.57% 16.47% 20.60% 7.13% 16.63%

Debt Oriented Funds Monthly Income PlansName of Scheme

Inception Date

NAVR

Returns for3m 6m 1yr Incep

Crisil MIP Blended Index 3.56% 6.78% 11.45% -UTI Monthly Income Scheme 12-Sep-02 22.4593 3.81% 6.93% 11.40% 8.24%

Income Funds

Gilt Funds


DateNAV

R Returns for

3 m 6 m 1 yr IncepCrisil Composite Bond Fund Index 2.33% 4.72% 9.52% - UTI Bond Fund 4-May-98 33.4981 2.76% 4.96% 10.70% 8.64%


DateNAV

R Returns for

3 m 6 m 1 yr IncepUTI Gilt Advantage Fund - L T P 21-Jan-02 23.2387 2.01% 4.00% 10.53% 8.07%

Liquid /Ultra Short Term FundsName of Scheme

Inception Date

NAVR

Returns for7d 1 m 3 m 6 m

Crisil Liquid Fund Index 0.15% 0.65% 1.91% 3.96%UTI Liquid Fund - Cash Plan 23-Jun-03 1870.6931 0.16% 0.71% 2.14% 4.54%UTI Treasury Advantage Fund 12-Jul-99 1539.1506 0.17% 0.71% 2.17% 4.66%

SBi mUtUal FUndS - a roUnd-Up

Note: Return figures are absolute for less than one year period for all funds. Moreover, past returns cannot be taken as ‘an indicator of future performance. All NAVs and return calculations are for the growth oriented plans.

As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f.October 1, 2012.

Equity Oriented Funds and Hybrid Funds As on November 30, 2012

Equity Funds


DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepBSE 200 11.90% 19.05% 22.28% 4.30% - BSE 500 12.14% 18.80% 22.09% 4.30% - CNX Midcap 15.10% 18.25% 22.50% 4.42% -

S&P Nifty 10.63% 18.77% 21.62% 5.32% -

SBI Magnum Global Fund 94 30-Sep-94 65.8300 14.99% 19.24% 28.61% 13.10% 13.68%

SBI Magnum Multiplier Plus 93 28-Feb-93 86.4100 9.96% 17.87% 24.78% 6.42% 13.82%

SBI Magnum Equity Fund 1-Jan-91 48.1600 12.84% 18.62% 24.43% 8.83% 14.84%

SBI Magnum SU Emerging Businesses 17-Sep-04 57.7800 18.62% 28.74% 38.54% 23.89% 23.82%

Index Funds

Balanced Funds


DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepNSE Nifty 10.63% 18.77% 21.62% 5.32% - SBI Magnum Index Fund 17-Jan-02 50.3809 10.77% 19.69% 22.23% 5.49% 16.03%


DateNAV

RReturns for

3 m 6 m 1 yr 3 yrs IncepCrisil Balanced Fund Index 7.70% 13.77% 17.60% 6.19% - SBI Magnum Balanced Fund 9-Oct-95 55.6900 13.19% 21.25% 28.26% 6.49% 16.00%

21

Debt Oriented Funds Monthly Income PlansName of Scheme

Inception Date

NAVR

Returns for3m 6m 1yr Incep

Crisil MIP Blended Index 3.56% 6.78% 11.45% - SBI Magnum MIP 9-Apr-01 23.2376 5.35% 8.37% 13.70% 7.48%

Income Funds

Gilt Fund


DateNAV

RReturns for

3m 6m 1yr IncepCrisil Composite Bond Fund Index 2.33% 4.72% 9.52% - SBI Magnum Income 25-Nov-98 27.8223 2.73% 6.13% 12.61% 7.52%


DateNAV

RReturns for

3m 6m 1yr IncepSBI Magnum Gilt LTP 30-Dec-00 22.5668 2.80% 5.41% 10.97% 7.06%

Liquid / Ultra Short Term Funds


DateNAV

R Returns for

7d 1 m 3 m 6 mCrisil Liquid Fund Index 0.15% 0.65% 1.91% 3.96%SBI Magnum Insta Cash - Cash Plan 21-May-99 2521.6339 0.15% 0.68% 2.07% 4.45%SBI SHDF - Ultra Short Term 27-Jul-07 1464.4085 0.16% 0.68% 2.08% 4.45%

22

mUtUal FUndS-a roUnd-Up oF eqUity oriented FUndS

Equity Funds As on November 30, 2012

Funds Recommended based on Long Term Trends

Funds recommended based on Emerging Trends


DateNAV

rReturns for

3 m 6 m 1 yr 3 yrs 5 yrs IncepBSE Sensex 10.25% 18.56% 19.89% 4.54% -0.02% --S&P Nifty 10.63% 18.77% 21.62% 5.32% 0.40% --

BSE 200 11.90% 19.05% 22.28% 4.30% -0.53% --

CNX 500 12.31% 19.15% 22.60% 4.09% -0.81% --

CNX Midcap 15.10% 18.25% 22.50% 4.42% 0.36% --

Large and Flexi Cap Funds

Aggressive Funds

Reliance Equity Opportunities Fund 31-Mar-05 43.2926 14.55% 21.37% 35.81% 17.19% 8.12% 21.04%

HDFC Equity Fund 1-Jan-95 284.3870 13.95% 17.34% 22.31% 8.25% 6.64% 20.53%

ICICI Prudential Dynamic Plan 31-Oct-02 114.5866 9.05% 13.98% 22.03% 9.58% 6.25% 27.34%

Birla Sun Life Top 100 Fund 24-Oct-05 25.4115 13.17% 22.08% 27.18% 8.68% 3.01% 14.02%

HDFC Top 200 11-Sep-96 220.9040 13.31% 18.41% 22.72% 7.83% 6.88% 22.57%

Franklin India Flexi Cap Fund 2-Mar-05 35.1894 14.40% 22.93% 23.94% 8.79% 3.56% 17.62%

Tata Contra Fund 14-Nov-05 19.2661 11.71% 16.19% 20.45% 8.65% 4.69% 9.75%

SBI Magnum Equity Fund 1-Jan-91 48.1600 12.84% 18.62% 24.43% 8.83% 1.84% 14.84%

DSP BlackRock Equity Fund - Dividend 29-Apr-97 50.1130 12.80% 16.92% 21.79% 7.73% 5.22% 22.06%

Conservative FundsICICI Prudential Focused Bluechip Equity Fund

23-May-08 18.3200 11.98% 19.82% 22.31% 11.31% -- 14.31%

UTI Opportunities Fund 20-Jul-05 32.0300 11.95% 19.38% 23.88% 11.45% 7.17% 17.11%

Birla Sun Life Dividend Yield Plus 26-Feb-03 92.4900 11.84% 17.11% 19.19% 10.86% 10.15% 25.58%

TATA Dividend Yield Fund 22-Nov-04 36.7805 9.75% 14.42% 19.54% 12.77% 6.53% 17.61%

Canara Robeco Equity Diversified 16-Sep-03 62.7600 12.03% 19.61% 24.77% 11.32% 6.21% 22.06%

HDFC Capital Builder Fund 1-Feb-94 115.1050 9.50% 16.19% 21.06% 8.93% 3.05% 13.85%

Franklin India Bluechip 1-Dec-93 233.3969 11.25% 18.01% 19.72% 9.21% 4.88% 24.98%

Mid Cap Oriented Funds

HDFC Mid-Cap Opportunities Fund 25-Jun-07 18.1070 10.71% 17.74% 25.84% 15.94% 8.71% 11.54%

ICICI Prudential Discovery Fund 16-Aug-04 55.4800 11.25% 17.79% 32.03% 13.77% 11.66% 22.94%

IDFC Sterling Equity Fund 7-Mar-08 21.2726 10.96% 19.55% 30.46% 13.72% -- 17.27%

Kotak Midcap Fund 24-Feb-05 29.0410 17.50% 25.04% 32.61% 12.10% 1.26% 14.71%

DSP BlackRock Small and Midcap Fund 14-Nov-06 19.6210 17.15% 20.79% 28.17% 12.84% 6.27% 11.79%


DateNAV

rReturns for

3 m 6 m 1 yr 3 yrs 5 yrs IncepSundaram Select Midcap 30-Jul-02 168.5916 11.76% 24.73% 25.26% 9.86% 5.21% 31.40%

Note :- As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes, w.e.f October 01, 2012

23

mUtUal FUndS-a roUnd-Up oF eqUity oriented FUndS

Funds Recommended based on Long Term Trends

Index Funds

Equity Linked Saving Schemes

Note: Return figures for all equity oriented schemes are absolute for <= 1 year and compounded annualised for > 1 year. Moreover, past returns cannot be taken as an indicator of future performance. Equity oriented scheme recommendations have been made based on the methodology, which assigns weightages to parameters like FAMA, Sharpe Ratio, Sortino Ratio, Corpus, Past Performance, Beta and Volatility.All NAVs and return calculations are for the growth oriented plans.As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f. October 1, 2012.

Balanced Funds As on November 30, 2012


DateNAV

rReturns for

3 m 6 m 1 yr 3 yrs 5 yrs IncepBSE Sensex 10.25% 18.56% 19.89% 4.54% -0.02% --S&P Nifty 10.63% 18.77% 21.62% 5.32% 0.40% --HDFC Index Fund - Nifty Plan 17-Jul-02 50.7871 10.49% 19.48% 21.43% 4.83% -1.29% 16.59%Franklin India Index Fund - NSE Nifty Plan

26-Mar-04 46.3172 10.40% 19.29% 21.46% 5.39% 0.28% 15.49%

UTI Nifty Fund 14-Feb-00 36.7405 10.64% 19.88% 22.21% 5.31% -0.01% 10.70%Franklin India Index Fund - BSE Sensex Plan

26-Mar-04 54.7033 10.11% 19.21% 20.04% 4.74% 0.39% 15.20%


DateNAV

rReturns for

3 m 6 m 1 yr 3 yrs 5 yrs IncepS&P Nifty 10.63% 18.77% 21.62% 5.32% 0.40% --CNX 500 12.31% 19.15% 22.60% 4.09% -0.81% --BSE Sensex 10.25% 18.56% 19.89% 4.54% -0.02% --Franklin India Taxshield 10-Apr-99 237.5879 11.20% 18.79% 21.85% 11.46% 5.19% 26.12%BNP Paribas Tax Advantage Plan 5-Jan-06 16.5620 13.14% 20.49% 26.25% 10.17% -3.62% 7.58%Reliance Tax Saver (ELSS) Fund 22-Sep-05 23.9438 13.06% 17.57% 33.70% 12.12% 4.87% 12.98%Tata Tax Saving Fund 31-Mar-96 47.2927 9.82% 19.60% 21.54% 8.21% 1.61% 20.19%ICICI Prudential Taxplan 19-Aug-99 154.3500 12.25% 20.06% 26.69% 10.76% 6.26% 22.86%Birla Sun Life Tax Plan 3-Oct-06 14.8500 11.99% 20.63% 23.88% 6.65% -0.36% 6.62%SBI Magnum Tax Gain Scheme 93 31-Mar-93 66.4700 10.34% 19.87% 26.46% 6.18% 0.84% 16.63%HDFC Long Term Advantage Fund 2-Jan-01 143.1200 9.19% 14.04% 19.47% 8.68% 3.68% 25.02%


DateNAV

rReturns for

3 m 6 m 1 yr 3 yrs 5 yrs IncepCrisil Balanced Fund Index 7.70% 13.77% 17.60% 6.19% 3.63% --Aggressive FundsTata Balanced Fund 8-Oct-95 98.1874 10.51% 19.32% 25.86% 10.53% 6.26% 16.32%ICICI Prudential Balanced Fund 3-Nov-99 54.5600 10.67% 15.91% 22.16% 11.86% 4.17% 13.85%Reliance RSF - Balanced 8-Jun-05 25.2540 11.18% 18.33% 26.36% 10.61% 9.85% 13.18%Canara Robeco Balance 1-Feb-93 70.6000 9.15% 15.40% 22.12% 11.35% 6.74% 10.56%SBI Magnum Balanced 9-Oct-95 55.6900 13.19% 21.25% 28.26% 6.49% 2.76% 16.00%Conservative FundsHDFC Prudence Fund 1-Feb-94 232.1310 11.15% 12.81% 19.81% 11.00% 8.93% 19.82%Birla Sun Life 95 10-Feb-95 340.2800 9.68% 17.06% 18.00% 8.87% 7.67% 21.89%DSP BlackRock Balanced Fund 27-May-99 71.0410 9.82% 13.42% 18.16% 7.37% 6.08% 15.60%

24

Income Funds As on November 30, 2012

Gilt Funds

Recommended Funds based on Long Term Trends

Monthly Income Plans


DateNAV

R Returns for

3 m 6 m 1 yr IncepCrisil Composite Bond Fund Index 2.33% 4.72% 9.52% --CRISIL Short Term Bond Fund Index 2.23% 4.73% 9.23% --Aggressive FundsSBI Dynamic Bond Fund 9-Feb-04 14.0829 2.54% 5.27% 11.70% 4.07%Reliance Dynamic Bond Fund 16-Nov-04 15.1225 2.59% 5.67% 13.05% 5.25%Kotak Bond Scheme - Plan A 25-Nov-99 32.7750 2.52% 5.58% 14.35% 9.54%IDFC SSIF - Invt. Plan - Plan A 14-Jul-00 27.0621 2.62% 5.32% 10.86% 8.37%Birla Sun Life Income Plus 21-Oct-95 50.8749 2.46% 4.52% 11.21% 9.97%HDFC Income Fund 11-Sep-00 26.0546 2.55% 5.35% 11.43% 8.15%Conservative FundsBirla Sun Life Dynamic Bond Fund 24-Sep-04 19.2347 2.54% 5.31% 10.81% 8.32%IDFC SSIF - MTP - Plan A 8-Jul-03 19.4854 2.48% 5.21% 10.34% 7.35%UTI Bond Fund 4-May-98 33.4981 2.76% 4.96% 10.70% 8.64%Canara Robeco Income Scheme 19-Sep-02 23.8656 2.49% 5.14% 10.19% 8.90%


DateNAV

R Returns for

3m 6m 1yr IncepCrisil MIP Blended Index 3.56% 6.78% 11.45% --Aggressive FundsHSBC MIP - Savings Plan 24-Feb-04 22.1766 5.86% 10.34% 15.87% 9.50%ICICI Prudential MIP 25 30-Mar-04 22.4410 5.03% 8.17% 13.97% 9.76%DSP BlackRock MIP Fund 11-Jun-04 22.4566 3.84% 6.69% 14.97% 10.01%Canara Robeco Monthly Income Plan 4-Apr-88 33.8206 3.62% 6.75% 11.59% 8.13%HDFC MIP - LTP 26-Dec-03 25.8204 4.68% 7.21% 12.40% 11.20%Reliance MIP 12-Jan-04 25.0199 4.61% 7.16% 15.62% 10.87%Conservative FundsHSBC MIP - Regular Plan 24-Feb-04 19.3321 3.95% 7.55% 12.15% 7.80%HDFC Multiple Yield Fund - Plan 2005 17-Aug-05 18.8601 3.35% 5.72% 10.01% 9.09%SBI Magnum MIP 9-Apr-01 23.2376 5.35% 8.37% 13.70% 7.48%ICICI Prudential MIP - Cumulative 10-Nov-00 29.3644 3.55% 6.61% 12.02% 9.34%



DateNAV

R Returns for

3 m 6 m 1 yr IncepKotak Gilt - Investment Regular Plan 23-Dec-98 39.0357 2.25% 5.49% 15.99% 10.26%Birla Sun Life G Sec Fund - LT 28-Oct-99 32.8493 2.07% 5.07% 11.45% 9.50%ICICI Prudential GFIP 19-Aug-99 38.1382 1.90% 4.65% 11.47% 10.59%HDFC Gilt Fund - L T P 25-Jul-01 22.5121 2.52% 5.68% 11.40% 7.41%

mUtUal FUndS-a roUnd-Up oF deBt oriented FUndS

As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes, w.e.f October 01, 2012

25

mUtUal FUndS-a roUnd-Up oF deBt oriented FUndS


Short Term Funds As on November 30, 2012

Name of Scheme Inception Date

NAVR

Returns for 3 m 6 m 1 yr Incep

Crisil Liquid Fund Index 1.91% 3.96% 8.56% --Crisil Composite Bond Fund Index 2.33% 4.72% 9.52% --CRISIL Short Term Bond Fund Index 2.23% 4.73% 9.23% --Aggressive FundsUTI Short Term Income Fund - IP 18-Sep-07 13.4806 2.66% 5.82% 11.28% 5.91%Reliance Short Term Fund 23-Dec-02 21.2370 2.48% 5.29% 9.96% 7.85%SBI Short Term Debt Fund 27-Jul-07 13.0868 2.61% 5.49% 10.44% 5.16%Axis Short Term Fund - IP 22-Jan-10 12.4227 2.53% 5.41% 10.17% 7.89%IDFC SSIF - Short Term - Plan A 14-Dec-00 23.4056 2.40% 4.98% 9.66% 7.36%Kotak Bond Short Term Plan 2-May-02 21.4612 2.43% 5.13% 9.84% 7.48%ICICI Prudential STP 25-Oct-01 23.2275 2.44% 5.21% 9.59% 7.88%HDFC Short Term Plan 28-Feb-02 22.0017 2.41% 5.17% 9.72% 7.60%Conservative FundsDSP BlackRock Short Term Fund 9-Sep-02 19.4248 2.38% 5.24% 9.56% 6.70%Canara Robeco Short Term Fund 31-Mar-09 13.0624 2.30% 4.73% 9.60% 7.55%DWS Short Maturity Fund 21-Jan-03 20.3891 2.45% 5.27% 9.80% 7.49%

Liquid FundsName of Scheme Inception

DateNAV

R Returns for

7d 1 m 3 m 6 mCrisil Liquid Fund Index 0.15% 0.65% 1.91% 3.96%Aggressive FundsReliance Liquid Fund - TP 10-Dec-03 2777.6746 0.16% 0.71% 2.16% 4.59%Pramerica Liquid Fund 27-Aug-10 1217.2244 0.16% 0.72% 2.17% 4.58%Birla Sun Life Cash Plus 29-Mar-04 182.6637 0.16% 0.71% 2.16% 4.58%HDFC Cash Mgmt Fund - Savings Plan 18-Nov-99 23.8223 0.16% 0.71% 2.15% 4.56%Kotak Floater - ST 14-Jul-03 18.6816 0.16% 0.71% 2.18% 4.62%HDFC Liquid Fund 17-Oct-00 22.4892 0.16% 0.71% 2.14% 4.48%Conservative FundsJPMorgan India Liquid Fund - Super IP 21-Sep-07 14.7837 0.16% 0.72% 2.18% 4.61%L&T Liquid Fund - Super IP 3-Oct-06 1564.4053 0.16% 0.71% 2.16% 4.57%ICICI Prudential Liquid 18-Nov-05 168.6565 0.16% 0.71% 2.16% 4.57%UTI Money Market - IP 10-Dec-03 1277.2441 0.16% 0.71% 2.16% 4.57%Axis Liquid Fund - IP 9-Oct-09 1263.9136 0.16% 0.71% 2.15% 4.56%ICICI Prudential Liquid 18-Nov-05 168.6565 0.16% 0.71% 2.16% 4.57%UTI Money Market - IP 10-Dec-03 1277.2441 0.16% 0.71% 2.16% 4.57%Axis Liquid Fund - IP 9-Oct-09 1263.9136 0.16% 0.71% 2.15% 4.56%

Ultra Short Term FundsName of Scheme Inception

DateNAV

R Returns for

7d 1 m 3 m 6 mCrisil Liquid Fund Index 0.15% 0.65% 1.91% 3.96%CRISIL Short Term Bond Fund Index 0.19% 0.60% 2.23% 4.73%Aggressive FundsTata Floater Fund 6-Sep-05 1707.8853 0.16% 0.71% 2.16% 4.59%Birla Sun Life Savings Fund 15-Apr-03 217.5202 0.16% 0.70% 2.16% 4.66%UTI Treasury Advantage Fund - IP 23-Apr-07 1539.1506 0.17% 0.71% 2.17% 4.66%IDFC Ultra Short Term Fund 17-Jan-06 15.8428 0.16% 0.73% 2.21% 5.05%Kotak Floater - LT 13-Aug-04 18.1445 0.16% 0.71% 2.22% 4.71%HDFC F R I F - STF - WP 23-Oct-07 19.4871 0.15% 0.68% 2.18% 4.66%Conservative FundsL&T Ultra Short Term Fund - IP 10-Apr-03 18.4418 0.16% 0.69% 2.19% 4.66%Birla Sun Life Ultra Short Term Fund 2-May-08 136.4358 0.17% 0.71% 2.20% 4.72%Canara Robeco Treasury Advantage Fund - Reg 11-Jul-08 1732.9880 0.16% 0.72% 2.22% 4.70%DWS Ultra Short Term Fund - IP 4-Jul-08 13.5213 0.16% 0.71% 2.21% 4.74%ICICI Prudential Flexible Income Plan 27-Sep-02 212.8726 0.16% 0.71% 2.15% 4.58%

Note: Return figures for all debt oriented schemes are absolute for less than one year period. Moreover, past returns cannot be taken as an indicator of future performance. Debt oriented scheme recommendations have been made based on the methodology, which assigns weightages to parameters like Sharpe Ratio, Performance Consistency, Corpus, Past Performance, Expenses, Credit Risk and Volatility.

All NAVs and return calculations are for the growth oriented plans.

As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f. October 1, 2012.All the NAVs and return calculation are for the Growth Oriented Plans.

26

Debt Market Round-up

The average daily liquidity deficit, measured under RBI’s Liquidity Adjustment Facility – LAF, moved up further in November ’12, as the demand for money remained strong and government continued to run surpluses. The tight liquidity conditions led call money rates to remain above the repo rate of 8%. The outstanding under repo moved up beyond the R 1 tn mark towards the latter half of the month. The average daily outstanding under repo increased to R 802.28 bn, against R 670.60 bn in October 2012.

The yields at the shorter end of the curve rose gradually, tracking tight liquidity conditions. The 3- month CD closed at a level of about 8.45% on the last day of the month, compared to 8.42% in end-October. The 6-month CD closed at a level of about 8.65%, compared to about 8.50% in the previous month. The 1-year CD was at a level of about 8.73% in November, as against 8.55% in October. The 3-month CD rates rose by about 6 bps intermittently in November, whereas the 1-year CD rose by about 18 bps.

Government securities’ yields continued to remain firm after the announcement of the RBI’s monetary policy on October 30 in which it had left the key benchmark rates unchanged. Continuous G-sec supplies also exerted pressure on G-sec yields, amidst lack of any bond buy- back by the RBI. November was the heaviest G-sec supply month in the second half of FY13 government borrowing calendar with G-sec auctions totaling R 650 bn. The 10-year G-sec yield rose to a level of 8.23% during the month. On the last day of the month, however, the 10-year benchmark G-sec bond yield declined by 5 bps intermittently, after the RBI announced an OMO on December 4 to the tune of R 120 bn. A lower GDP number of 5.3% for Q2 FY13 and the announcement of open market operations (OMOs), led to a decline in long-term G-sec yields. The yield closed at a level of 8.18% on November 30, 2012, compared to 8.21% on October 31, 2012. The yields at the longer end of the corporate bond curve also rose gradually during the month tracking G-sec yields.

The WPI inflation for October 2012 declined to 7.45%, which was much lower than market expectations. The WPI inflation for September stood at 7.81%. The lower WPI for October was despite the rise in prices of essential food items like rice, potato, wheat, etc. The inflation during the same period last year stood at 9.87%.

Bank credit grew at 16.9%, as of November 16, compared to 17.7% during the same period last year; and deposits grew by 13.4%, as against 16.5% a year ago.

Fund managers of most the recommended short term funds, income funds and gilt funds increased their portfolios’ average maturities marginally in the month of November 2012. They also added state development loans (SDLs) to their portfolios, on account of the good buying opportunity in the instrument. The rise in yields across both the longer and shorter ends of the curve during the month impacted the returns on these funds. The returns on MIPs improved during the month, on account of the rally in the equity markets.

We continue to recommend investment across income funds for aggressive investors, with a horizon of 15-18 months. We also recommend investment in short term income funds, as the yields are expected to decline over the medium term. Aggressive investors can look at building duration to the portfolio gradually by increasing the exposure to income funds, as the yields at the longer end are expected to decline. Investors should also look at hybrid funds like monthly income plans and asset allocation funds, in order to benefit from the dynamic asset allocation strategies.

market overview: novemBer 2012 Equity Market Round-up

Taking cues from global markets and domestic economic developments, Indian equity markets witnessed a strong northward rally and closed at a high of 19339.9 in November 2012. Enduring its northward trend from last month, the BSE Sensex opened on a positive note ahead of the winter session of parliament. However, it witnessed some selling in the middle of the month, on concerns on the functioning of the parliament. The markets rebounded during the last week of the month on hopes that the government would be able to push through with a host of reforms measures during the winter session of parliament. The affirmative statement about the Indian economy from Moody’s also helped the market edge higher. The strong rally was also supported by news that Greece will get bailout fund from the trio of international lenders comprising the European Union, the European Central Bank and the IMF. Overall, the Sensex gained 4.5% on a MoM basis. The BSE Midcap and BSE Small Cap indices also closed higher and were up by 5.1% and 4.1% respectively.

US stocks finished the month modestly higher, but not before experiencing wide swings due to worries over the automatic tax hikes and spending cuts of the upcoming “fiscal cliff”. The economic data released during the month was mixed which kept the market range bound with a slightly positive bias.

The Eurozone’s finance ministers and the IMF announced that they have reached an agreement that takes Greece closer to receiving a massive bailout payment. The measures could help cut the Greek debt to a targeted 124% of the GDP by 2020 and lower than 110% in 2022. This had a positive impact on investor sentiment. The other positive news which led to improved optimism in the Eurozone was the November PMI index which at 46.2 was up from 45.4 points in October.

FII flows have been very strong for the last four consecutive months which have been helping the market to hold its ground. For November, FIIs were net buyers to the tune of R 95.8 bn while DII’s were net sellers to the tune of Rs 12.73bn. On a cumulative basis, for CY12, FIIs have been net buyers of Rs 1033 bn.

Most of the BSE sectoral indices ended on a positive note. Amongst the major gainers, the BSE CD, BSE Realty, BSE Bankex and BSE Teck were the best performing indices with gains of 15.8%, 12.8%, 7.8% and 6.4% respectively on a MoM basis. Oil & Gas was the only sector which ended lower; it was down by 1.2% MoM.

Most of the fund managers of the recommended equity funds are bullish on domestic equity markets. They believe that the FIIs are also bullish on Indian markets. The fund managers also believe that the valuation are at fair value. They believe that the reforms announced by the Government auger well for the economy however implementation would be the key. However fund managers are also cautious on certain economic indicators like current account deficit and fiscal deficit. Fund managers are largely netural to banking and IT sector and have incresed exposure to cyclicals.

The IIP grew by 8.20% YoY in October, against -0.4% in September. This was mainly on account of good performance in manufacturing & power sector and better output of capital & consumer goods.

We continue to remain long-term positive on Indian markets, considering the fact that they are at fair valuations. We continue to recommend investors to invest 50% as lump sum; the rest of the funds are to be staggered over the next three to four months. We recommend investors to look at a mix of large cap and flexi-cap funds, with an investment horizon of 2–3 years. Conservative investors should look at investing in equity funds using a systematic investment plan, as the long term fundamentals of the equity market continue to look good.

Note: The returns chart shown above is on absolute basis. The returns are as on 11th December 2012.

28

The fund is a flexi cap fund which invests across various sectors and stocks. The fund maintains a mix of large and mid-cap stocks and rebalances the same based on the market view. The fund allocates the portfolio across themes and sectors which look attractive from a medium to long term perspective. As per the Fund manager macro headwinds that kept the markets under pressure last year are subsiding. Domestically inflation is likely to moderate next year which could lead to interest rates heading southwards. Indias GDP growth is likely to be higher next year as compared to this year and also global liquidity environment should continue to be positive. as major Central Banks may restore to further quantitative easing. As per the Fund manager, Indian market are currently trading at 13.5x 1 yr fwd PE. The fund manager is of the view that markets will take direction on positive news flows from global markets like hints on further monetary easing from global central banks and continuing policy reform measures on the domestic front. As per the fund manager key risk to the global and Indian markets are geo political tensions which can lead to spike in oil prices , political gridlock in the US resulting in fiscal cliff, re-emergence of European risks – Greece exit, etc. , rollback of recently announced policy measures, pre mature elections in India. The Fund manager believes that a lot of headwinds seem to be in the price already and also the above risk can only delay the inevitable equity bull run by few months. The fund is overweight on select large cap IT stocks, Pharma, Consumer Durables, select NBFCs and PSU banks. The fund manager continues to remain cautious on Infrastructure stocks and it is looking to add exposure to select Automobile stocks. The fund is positive on the retail sector .Recently, the fund has increased the exposure to Banking, Capital Goods, Auto sector and reduced exposure to Pharma, IT sector. Currently, the fund has 48% exposure to large caps, 40% to mid caps and 9% to small cap stocks. The Fund has added new stocks like Wipro, Canara Bank in the Portfolio. The fund is recommended for aggressive investors, from a 2–3 year investment horizon. HDFC Equity Fund - Strategy and ViewThe fund is a large cap fund which invests in companies having a good business model and growth potential with a long term investment horizon. The fund manager continues to remain cautiously bullish on the equity markets after the recent upward movement in the markets. The fund manager expects that the market would move up from current levels, if the international crude oil prices decline from current levels. A decline in crude oil prices would have a positive impact on both current account and fiscal deficit numbers. The fund manager expects that the government reform measures and direct cash transfer scheme would be positive over the long term. The fund manager expects the RBI to reduce the interest rates over the next few months and this should be positive for interest rate sensitive sectors. The fund continues to remain overweight on Banking and Capital goods while the fund has got an underweight stance on FMCG and Pharma. Though FMCG and Pharma sector is good over the long term, any disappointment in their performance would impact the stocks over the short term. Though the fund is not expecting any big capex led growth to happen, given the low valuations in these stocks, the fund manager has added these stocks. The fund is also positive on Oil Marketing Companies as any decline in crude oil prices would be positive for these companies. Over the medium to long term, the returns are likely to be driven largely by earnings growth with some prospects for an improvement in valuations. Apart from earnings growth a potential, reduction in interest rates leaves room for an expansion in multiples. The fund continues to have Banking, IT and Oil & Gas among the top sector holdings. The fund has 70% exposure to large cap and 24% exposure to mid cap stocks.The fund continues to remain fully invested into equities. The fund is recommended with an investment horizon of 2-3 yrs

Reliance Equity Opportunities Fund - Strategy and View

Top Holdings as on November 30, 2012Company %State Bank of India 8.64ICICI Bank Ltd. 7.60ITC Ltd. 5.80Infosys Ltd. 5.39Tata Motors - DVR - A - ORDY 4.03

Total 31.46

Sector %

Banks & Finance 27.67

IT 10.35

Oil & Gas, Petroleum & Refinery 8.60FMCG 7.98Pharma 7.00Total 61.60

Debt & Cash 0.33

Top Holdings as on November 30, 2012Company %Divis Laboratories Ltd. 6.23Infosys Ltd. 5.04ICICI Bank Ltd. 4.62Trent Ltd. 4.24State Bank of India 4.19

Total 24.32

Sector %


IT 16.05

Pharma 12.81Capital Goods 9.00Auto & Auto Ancillaries 7.85Total 66.80

Debt & Cash 1.62

mUtUal FUnd SynopSiS: eqUity FUndS aS on novemBer 30, 2012

29

ICICI Prudential Dynamic Equity Fund - Strategy and ViewThe Fund is a Flexi Cap Fund which invests across market caps. The Fund dynamically manages cash levels in case markets are at overvalued position. The fund manager is of the opinion that investor sentiments were significantly boosted after Parliamentary approval on FDI and progressive government action on reforms front. As per the fund manager, FIIs are bullish on Indian markets. The fund manager is of the opinion that the market will remain volatile in the near term, however following key triggers being achieved could be positive for markets like a follow-up in policy reforms, divestment decision, FDI in key sectors, Faster clearance of mega projects through NIB and focus on roads and railways which could revive the overall business confidence and help arrest the decline in private investment. Steps outside divestment like increased taxation and further hike in diesel prices that will aid in further fiscal consolidation. Also, if crude prices remaining below or at 100 $ per barrel this would give the RBI headroom for cutting interest rates in the future. As per the Fund, key indicators suggest stabilization in both GDP and earnings, with Q2 aggregate earnings seeing negligible net downgrades. As per the Fund manager, US Fiscal Cliff, Euro area uncertainty and Middle East geo-politics will play their role as India’s dependence on global capital and risk appetite remains high. Currently, the markets are trading at a fair valuation zone. Quality stocks from the FMCG, Cement, and Pharmaceutical sectors are trading at very high valuations, excluding these stocks; the broader market is attractive in terms of valuations. The Fund dynamically manages the cash exposure. The Fund has increased the cash levels to 19% from 17%.The Fund has increased exposure to Oil & Gas and has reduced the exposure to Telecom sector. Currently, the fund has 55% exposure to large caps, 19% to mid caps and 4% to small cap stocks. The fund is recommended with an investment horizon of 2-3 yrs.

UTI Opportunities Fund - Strategy and ViewThe fund invests into large cap stocks and uses the bottom up approach while picking up stocks. The fund largely remains invested in the equity market and does not take aggressive cash calls. The fund normally invests in 35-40 stocks and takes concentrated exposure across select stocks. The Fund manager believes that markets are expected to remain volatile. On the domestic front, the focus would be on government action on the reforms, as many bills are expected to be introduced in the Parliament. Global market action would also be closely watched and any signs of Fiscal Cliff in the US getting resolved would be a major positive for the markets. The Fund views, that unlike 2008, the reasons for the slowdown in India are domestic in nature and constructive actions from the government can alleviate stress. A combination of few policy issues along with slowing growth has impacted investment growth. On the other hand, persistently high inflation levels are weighing on household savings. There is an urgent need to focus on measures to bring down inflation, boost investment growth, cut expenditure and channel household savings into the capital markets. The Fund manager views that some profit booking could be expected ahead of primary market issues but there will be downside support, as underlying mood remains bullish. Global liquidity and expectations of a rate cut by RBI would keep the market momentum positive. Stronger rupee and falling crude prices would also help the markets. The fund continues to have Banking, FMCG and Cement among the top sectoral holdings. Of the total equity exposure, the fund has invested 83% into large cap stocks and 12% into mid cap stocks. The Fund has added new stock Shriram Transport Finance Ltd in the Portfolio .The fund is recommended for moderate and conservative investors with a horizon of 2-3 yrs.

mUtUal FUnd SynopSiS: eqUity FUndS aS on novemBer 30, 2012

Top Holdings as on November 30, 2012Company %ITC Ltd. 6.49ICICI Bank Ltd. 5.50HDFC Bank Ltd. 5.14Larsen & Toubro Ltd. 4.76Housing Development Finance Corporation Ltd. 3.95

Total 25.85

Sector %


FMCG 12.66

Cement 10.96IT 7.29Auto & Auto Ancillaries 6.95Total 60.55Debt & Cash 4.65

Top Holdings as on November 30, 2012Company %Cairn India Ltd. 9.27Bharti Airtel Ltd. 8.68Infosys Ltd. 8.37Reliance Industries Ltd. 5.38

Standard Chartered PLC 5.35

Total 37.05

Oil & Gas, Petroleum & Refinery 18.09

Banks & Finance 12.39IT 11.75Telecom 9.51Pharma 8.93Total 60.66Debt & Cash 19.33

30

mUtUal FUnd SynopSiS: eqUity FUndS aS on novemBer 30, 2012Birla Sun Life Top 100 Fund: Strategy and ViewThe Fund is large cap focused fund that invests in equity and equity related securities of top 100 companies in India as measured by market capitalization.The Fund manager is of the opinion that markets are looking forward for concrete action on ground by the government to restart the growth engines. The fund is of the view that Indian markets have outperformed most other markets, on account of the domestic reforms announced by the government and the quantitative easing globally. The Indian economy is facing problems like declining GDP growth, rising inflation and a weaker rupee, but the markets have reacted positively on the reforms. Domestically, the government has a clear agenda: to set regulatory policy changes with key reforms expectations like the GST roll out plan, the Land Acquisition bill and fiscal consolidation which are likely to keep the markets buoyant. The fund expects India’s GDP growth rate for FY13 to be around 6–6.5%. It also expects the inflation to moderate later this year which could lead to a reduction in interest rates by the RBI in coming months.The Fund manager believes that markets will start witnessing more earnings upgrades than downgrades. Investors should take broad approach towards equity investments; assuming that the growth is likely to bottom out in current fiscal year and hence as the cycle picks up, eventually growth will normalizes at 6.5-7.5% p.a. levels based on this corporate earnings growth is likely to recover sharply. The earnings growth would be around 15% p.a. on an average, over the next 3–5 years. The above earnings expectations could lead to relatively strong equity market performances over the next few years.The Fund is of the view that in such scenarios, value stocks tend to do well as their earnings also normalize, banks asset quality improves and erstwhile bad assets are recovered, businesses start planning new expansion plans.The fund’s top sector holdings are in the Banking, IT & Pharma sector . The Fund has increased its cash level from 3% to 4%. The fund has 78% exposure in large caps, 18% exposure in mid cap stocks. The fund is recommended for moderate to aggressive investors, with an investment horizon of 2–3 years

IDFC Sterling Equity Fund : Strategy and ViewThe fund focuses on companies that are financially sound, have proven business models. It also focuses on identifying structural changes in the environment and align companies based on how their valuations stack up within their respective industries.The Fund is a Mid Cap oriented fund, benchmarked to CNX Mid Cap index and with in the sectoral allocation goes for active stock selection.The fund is of the view that the rally in Indian markets was supported by both domestic reforms and global liquidity with India outperforming most of the Asian Indices. FIIs have invested more than $19 billion in Indian markets till date. The Fund manager believes that government policies will continue to support consumption part of the economy which will keep the demand side intact. On the investment side of the economy, macro data continues to show disappointment and might take some more time to pickup although government has initiated measures in the right direction it still lacks details. From the outsourcing side of the economy, a depreciated currency will continue to support it.As per the Fund manager, a combination of below-trend growth and above-trend inflation have restricted action on the monetary side. A set of constructive actions by the government on the policy front, including a credible fiscal correction, can create space for monetary easing which would be positive for the markets. From an overall portfolio perspective, the fund would make major changes only after signs of execution of policies are clearly visible.The Fund manager focuses on businesses which are low on financial risk and have some comfort on valuations. The fund continues to focus on Capital Goods sector Recently the fund has added public sector banks in the portfolio. The Fund continues to follow bottoms up strategy and try to polarise capital to pockets where it believes a significant alpha can be generated.The Fund has Banks , Pharma. IT and FMCG as its top sectoral holdings. The fund uses the cash in the portfolio to meet redemptions and also invest in stocks during volatility. The fund has 59% in mid caps, 26% in large caps and 7% in small cap stocks. The fund has added new stocks like Idea Cellular Ltd, Union Bank of India Ltd in the portfolio .The fund is recommended for aggressive investors, with an investment horizon of 2–3 years.

Top Holdings as on November 30, 2012Company %ICICI Bank Ltd. 5.35ITC Ltd. 4.28Reliance Industries Ltd. 3.79Larsen & Toubro Ltd. 3.19

Housing Development Finance Corporation Ltd. 3.06

Total 19.66


IT 12.45

Pharma 8.20Oil & Gas, Petroleum & Refinery 7.96Auto & Auto Ancillaries 7.05Total 63.86Debt & Cash 4.10

Top Holdings as on November 30, 2012Company %Strides Arcolab 5.70Mahindra & Mahindra Financial Services Ltd. 4.98Nestle India Ltd. 4.19Bajaj Finance Ltd. 4.15Wockhardt Ltd. 3.99

Total 23.00

Sector %


Pharma 15.37

IT 8.23FMCG 7.67Capital Goods 7.52Total 60.22Debt & Cash 7.93

32

Birla SunLife Funds: Strategy and ViewAccording to the fund house, after the announcement of the October 2012 monetary policy, there was about 10 bps backing up in yield on the 10-year benchmark G-sec and a widening of term spreads on the Gilt curve. The announcement of OMOs towards the end of November 2012, helped G-sec yields to decline and have reduced term spreads. The fund house expects the RBI to conduct about R 50,000–60,000 crore of incremental OMOs till March 2013. A combination of OMOs, expectations of a policy rate cut and demand-supply of SLR securities being skewed in favor of SLR till March 2013 end, is expected to be positive for duration funds. The funds continue to prefer G-secs over non-SLR securities, given that the spreads on corporate bonds are already lower. The fund house continues to believe that there could be a rate cut of about 75–100 bps over the next one year and that the rate cut cycle will unfold gradually this time, offering a good opportunity to investors to benefit from it. The fund house expects inflation to remain sticky at about 8% levels in the next 1-2 months, before starting to moderate in 2013. The fund house also believes that the monetary actions of the RBI in FY13 so far, together with the latest policy initiatives of the government have resulted in a steepening of the yield curve and a significant drop in spreads of non-SLR securities over GOIs since March 12. This easing by the central bank indicates that irrespective of its anti-inflationary stand, the RBI remains equally concerned about domestic growth. In the Birla Sun Life Dynamic Bond Fund, the exposure to AAA & equivalent rated papers is about 40% and about 24.6% to G-secs, as of November 2012. Its exposure to G-secs in the month of October 2012 was about 21%. The yield to maturity of the fund, as of November, was 9.08%. The fund’s modified duration, as of November, was 3.18 years, as compared to 3.05 years in the previous month. In Birla Sun Life Income Plus Fund, the portfolio’s modified duration was 7.32 years, as of November 2012, compared to 6.59 years in the previous month. Its allocation to G-secs had increased to 82.75% in November 2012, as compared to 66.58% in the previous month. The yield to maturity of the fund, as of November, was 8.47%.

Kotak Funds: Strategy and ViewAccording to the fund house, interest rates are expected to go down in the future, on account of the slowdown of the economy, the stabilising inflation, and a likely change in RBI’s stance. The YoY GDP growth for Q4 FY-2010 was 11.19%. Since then, the growth has been dwindling every quarter. Q2 FY-2013 grew by 5.3%, with the industrial sector growing at only 0.7%. The Index for Industrial Production (IIP) depicts a similar story. According to the fund house, the average WPI Inflation was around 8.4% in FY-2012 which had declined to 7.45% in October 2012. Although it still remains sticky, the core Inflation has eased to 5.2% in October 2012, showing weakness in demand side pressures. The fund house expects the WPI Inflation to stabilise at around 7–7.5%, assuming a hike in fuel prices. The RBI’s stance is likely to change in the future. This is because the government has taken a host of policy measures such as FDI in retail, aviation, pension and insurance; the implementation of these measures holds the key. The government has also raised the price of petrol and diesel and reduced the subsidy burden on LPG. Further, the government has made a statement to contain fiscal deficit at 5.3% of the GDP, although the RBI would like to see more details of the fiscal roadmap. The fund house expects the RBI to ease rates going forward — if Inflation does not pull any negative surprises. In Kotak Bond Short Term Fund, the portfolio’s average maturity, as on November 2012, was 2.69 years, compared to R 2.7 years in the previous month. The fund had about 4.5% exposure to G-secs, as of November. Its exposure to CDs/CPs was about 16%. In Kotak Bond Scheme - Plan A, the average maturity was10.27 years, as of end November. The fund has a YTM of 9% and had about 50% exposure to G-secs as of November..Reliance Funds: Strategy and ViewAccording to the fund house, the recent OMOs, along with government spends may lead to some inflows into the system. However, due to indirect tax payment outflows, the liquidity may continue to remain tight, despite the OMO auction. By mid-December, corporate advance tax payments may take out a significant amount of liquidity from the system. Hence, the RBI may have to announce more OMOs. A CRR cut of 25 bps at the 18th policy meet in December cannot be ruled out. The fund house expects the RBI to conduct about R 60,000 – 70,000 cr of OMOs in 2H FY13. Bond yields remained under pressure in November on the back of continuous auctions and provided good buying opportunity. Going forward, OMOs will provide support to yields. The supply of G-sec for the December – March quarter has come down to R 96,000 cr (budgeted). As per the fund house, even if the government announces additional borrowings of around R 40,000 cr through G-secs and R 30,000 cr through T-bills, the demand in the market may be enough to absorb the supply. A possible re-auction of spectrum this fiscal and improved tax receipts in FY13 may be positive for fiscal deficit. The fund house believes that a rate cut is expected by end of January. If the WPI inflation eases more than is expected by March ’13, the RBI might cut the repo rate by 50–75 bps in next 3–6 months. G-sec yields are expected to move down by about 20–30 bps from their current levels over the next 3–4 months as inflation eases, the RBI initiates a rate cut and the government’s fiscal situation becomes clearer. In Reliance Short Term Fund, the portfolio’s average maturity has increased to about 2.35 years, as against 2.29 years in the previous month. The fund has increased the exposure to G-secs to 19%, as compared to about 15% in the previous month. Its YTM, as of November, was 8.89%. In Reliance Dynamic Bond Fund, the average maturity, as of November, was 9.37 years, compared to 8.63 years in October. The fund’s exposure to G-secs has also increased to 61%, as against about 54% in the previous month.

Recommended Funds of Birla SL MF

Modified Duration Investment Horizon

Birla SL Dynamic Bond Fund 3.18 Years 9 Months and above

Birla Sun Life Income Plus Fund 7.32 Years 15 Months and above

Recommended Funds of Kotak MF

Average Maturity Investment Horizon

Kotak Bond Short Term Plan A 2.69 Years 9 Months and above

Kotak Bond Scheme - Plan A 10.27 Years 15 Months and above

Recommended Funds of Reliance MF

Average Maturity Investment Horizon

Reliance Short Term Fund 2.35 Years 9 Months and above

Reliance Dynamic Bond Fund 9.37 Years 15 Months and above

mUtUal FUnd SynopSiS: deBt oriented FUndS aS on novemBer 30, 2012

Fixed income options

33

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Fund Fact sheet

34

Equity Funds As on November 30, 2012

Note: Return figures for all the Equity oriented schemes are absolute for <= 1 year and compounded annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. * If redeemed before 1 Year from the date of allotment. ** Corpus as on Nov ‘12 (aggregate of all plans within the scheme) # 3% if redeemed before 6 months , 2% if redeemed between – 6 to 18 months from the date of allotment.

Name of Fund Reliance HDFC ICICI Prudential UTI Birla Sun LifeEquity Opportunities Equity Dynamic Plan Opportunities Top 100

Inception Date 31-Mar-05 1-Jan-95 31-Oct-02 20-Jul-05 24-Oct-05Corpus (in Rs Cr) ** 4763.68 10466.14 3981.34 3493.73 304.11NAV (Rs) 43.29 284.39 114.59 32.03 25.41Returns BSE Sensex1 Month 4.93% 5.04% 5.21% 4.10% 5.05% 6.33%3 Months 10.25% 14.55% 13.95% 9.05% 11.95% 13.17%6 Months 18.56% 21.37% 17.34% 13.98% 19.38% 22.08%1 Year 19.89% 35.81% 22.31% 22.03% 23.88% 27.18%3 Years 4.54% 17.19% 8.25% 9.58% 11.45% 8.68%5 Years -0.02% 8.12% 6.64% 6.25% 7.17% 3.01%Since Inception 21.04% 20.53% 27.34% 17.11% 14.02%Exit Load 1.00%* 1.00%* 3.00% # 1.00%* 1.00%*Dividend Pay-out (Latest) 15% 40% 20% 9% 10%

Dividend Date 29-Mar-12 23-Mar-12 2-Nov-12 19-Apr-12 22-Jun-12

Portfolio CompositionSectorsAuto & Auto Ancillaries 7.85% 6.53% 0.70% 6.95% 7.05%Banks & Finance 21.08% 27.67% 12.39% 22.69% 28.19%Capital Goods 9.00% 6.26% 1.86% 4.95% 5.19%Cement 2.41% 0.46% 0.82% 10.96% 4.31%Chemicals & Fertilisers 0.33% 1.07% 5.04% 1.15% 0.00%Consumer Durables 0.00% 0.97% 0.09% 3.14% 0.00%Diversified 1.50% 0.00% 1.07% 0.00% 0.00%Housing & Construction 2.19% 4.42% 0.00% 0.00% 0.15%IT 16.05% 10.35% 11.75% 7.29% 12.45%Media 6.49% 3.53% 0.42% 2.31% 0.80%Metals 2.54% 4.51% 8.63% 1.59% 5.15%Oil & Gas, Petroleum & Refinery 3.88% 8.60% 18.09% 5.78% 7.96%Power 3.67% 6.32% 2.15% 4.92% 3.33%Telecom 0.00% 1.59% 9.51% 2.02% 1.47%Textiles 0.00% 1.07% 1.49% 0.00% 0.00%Transport & Shipping 0.22% 0.00% 1.31% 0.00% 0.00%Defensive 13.40% 14.98% 9.67% 18.15% 15.25%FMCG 0.59% 7.98% 0.74% 12.66% 7.05%Pharma 12.81% 7.00% 8.93% 5.49% 8.20%Other Equities 7.76% 1.34% -4.32% 3.45% 4.59%Fixed Income Investments 0.00% 0.00% 7.41% 2.02% 1.81%Current Assets 1.62% 0.33% 11.93% 2.64% 2.29%Market CapitalisationLarge Cap 47.74 70.53 55.66 83.06 77.94Mid Cap 39.94 23.63 19.88 12.09 17.95Small Cap 9.18 1.48 3.26 0.01 0.00Concentration of Stocks% of AssetsTop 5 24.32% 31.46% 37.05% 25.85% 19.66%Top 10 42.03% 46.34% 54.63% 43.15% 33.74%

Top 5 Stocks

Divis Laboratories Ltd State Bank of India Cairn India Ltd. ITC Ltd. ICICI Bank Ltd.

Infosys Ltd ICICI Bank Ltd Bharti Airtel Ltd. ICICI Bank Ltd. ITC Ltd.

ICICI Bank Ltd. ITC Ltd Infosys Ltd. HDFC Bank Ltd. Reliance Industries Ltd.

Trent Ltd. Infosys Ltd Reliance Industries Ltd. Larsen & Toubro Ltd. Larsen & Toubro Ltd.

State Bank of India Tata Motors - DVR - A - ORDY Standard Chartered PLC HDFC Ltd. HDFC Ltd.

35

FUnd Fact Sheet

Balanced Funds As on November 30, 2012

Note: Return figures for all the Equity oriented schemes are absolute for <= 1 year and compounded annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. * 1%If redeemed before 1 Year from the date of allotment. # 1%If redeemed before 0 - 15 Months from date of allotment.** Corpus as on Nov ‘12 (aggregate of all plans within the scheme)

Key Details Tata ICICI Prudential Reliance RSF HDFC Birla Sun LifeBalanced Fund Balanced Fund Balanced Prudence 95

Inception Date 8-Oct-95 3-Nov-99 8-Jun-05 1-Feb-94 10-Feb-95Corpus (in Rs Cr) ** 464.21 397.43 567.50 6262.08 567.91NAV (Rs) 98.19 54.56 25.25 232.13 340.28Returns Crisil Balanced Fund Index1 Month 3.44% 5.32% 4.78% 5.28% 3.32% 4.53%3 Months 7.70% 10.51% 10.67% 11.18% 11.15% 9.68%6 Months 13.77% 19.32% 15.91% 18.33% 12.81% 17.06%1 Year 17.60% 25.86% 22.16% 26.36% 19.81% 18.00%3 Years 6.19% 10.53% 11.86% 10.61% 11.00% 8.87%5 Years 3.63% 6.26% 4.17% 9.85% 8.93% 7.67%Since Inception 16.32% 13.85% 13.18% 19.82% 21.89%Exit Load 1.00%* 1.00%# 1.00%* 1.00%* 1.00%*Dividend Pay-out (Latest) 3.50% 17.50% 10% 35% 50%Dividend Date 9-Nov-12 28-Sep-12 30-Mar-12 15-Mar-12 13-Feb-12Portfolio Composition SectorsAuto & Auto Ancillaries 6.80% 15.44% 6.71% 3.80% 6.29%Banks 21.87% 18.16% 21.13% 23.74% 22.44%Capital Goods 3.30% 0.00% 2.57% 4.56% 4.40%Cement 3.26% 1.08% 0.04% 0.97% 2.39%Chemicals & Fertilisers 0.55% 0.00% 0.00% 3.42% 0.40%Consumer Durables 1.14% 0.58% 0.00% 0.21% 0.70%Diversified 0.00% 0.00% 0.00% 0.00% 0.00%Housing & Construction 3.77% 1.21% 0.00% 3.01% 0.80%IT 5.02% 6.06% 11.25% 5.77% 9.34%Media 2.68% 1.37% 5.20% 2.15% 2.32%Metals & Mining 3.24% 1.73% 2.05% 3.00% 3.08%Oil, Gas & Petroleum 1.70% 4.93% 2.71% 3.87% 4.25%Power 1.42% 2.33% 6.04% 2.78% 1.75%Telecom 1.05% 3.06% 2.77% 0.56% 0.00%Textiles 0.00% 0.00% 1.13% 2.31% 0.00%Shipping 0.00% 0.00% 0.00% 0.07% 0.00%Defensive 16.31% 9.84% 11.36% 8.95% 11.63%FMCG 7.19% 4.81% 0.88% 1.86% 5.86%Pharma 9.12% 5.02% 10.48% 7.09% 5.77%Other Equities 2.86% 0.63% 0.59% 5.84% 1.73%Fixed Income Investments 23.00% 30.22% 21.73% 23.21% 23.24%Current Assets 2.02% 3.36% 4.72% 1.78% 5.24%Market CapitalisationLarge Cap 44.35 44.11 52.30 34.93 55.68Mid Cap 26.10 21.74 12.99 32.58 14.40Small Cap 1.73 0.57 5.07 4.94 0.00Concentration of Stocks% of EquitiesTop 5 18.97% 18.07% 26.49% 20.66% 16.26%Top 10 32.79% 31.05% 42.42% 30.67% 24.80%

Top 5 Stocks

HDFC Ltd. Amara Raja Batteries Ltd ICICI Bank Ltd. ICICI Bank Ltd ICICI Bank Ltd

HDFC Ltd. IndusInd Bank Ltd Infosys Ltd. State Bank of India IndusInd Bank Ltd.

ICICI Bank Ltd. Bharti Airtel Ltd. HDFC Bank Ltd. Infosys Ltd ITC Ltd.

Strides Arcolab Motherson Sumi Systems Ltd Divis Laboratories Ltd. Page Industries Ltd HDFC Bank Ltd.

HCL Technologies Ltd. Infosys Ltd. Tata Motors Ltd. Tata Motors - DVR - A

- ORDY HCL Technologies Ltd.

36

FUnd Fact Sheet

Monthly Income Plans As on November 30, 2012

Name of Fund ICICI Prudential DSP BlackRock HDFC MIP Canara Robeco HDFC

MIP - 25 MIP Fund LTP Monthly Income Scheme

Multiple Yield Fund - Plan 2005

Inception Date 30-Mar-04 11-Jun-04 26-Dec-03 04-Apr-88 17-Aug-05Corpus (in Rs Crs) ** 444.38 435.81 5002.05 273.25 498.86NAV (Rs) 22.44 22.46 25.82 33.82 18.86

Returns Crisil MIP Blended Index 1 Month 1.19% 2.10% 1.32% 1.02% 1.48% 1.02%3 Months 3.56% 5.03% 3.84% 4.68% 3.63% 3.35%6 Months 6.78% 8.17% 6.69% 7.21% 6.75% 5.72%1 Year 11.45% 13.97% 14.97% 12.40% 11.59% 10.01%Since Inception 9.76% 10.01% 11.20% 8.13% 9.09%

Portfolio CompositionFixed Income Securities/DebtGovt. Secs 11.22% 27.71% 11.99% 0.00% 0.00%Call Money/Repos/Cash/FD 3.86% 10.88% 3.77% 11.92% 12.06%PSU Bonds 18.83% 3.48% 16.50% 7.40% 12.70%FI & Bank Papers 18.31% 21.10% 14.70% 39.45% 43.01%NBFC Papers 7.20% 12.26% 18.89% 10.95% 11.30%Securitised Debt 1.40% 0.00% 0.64% 0.00% 0.00%Other Corporate bonds 16.18% 2.44% 7.75% 7.71% 4.63%

Average Maturity (Years) 5.13 5.94 11.58 1.02 0.62

Equities 23.00% 22.13% 24.86% 22.57% 16.30%SectorsAuto & Auto ancilliaries 2.05% 1.52% 0.93% 1.94% 1.77%Banks & Finance 6.84% 3.94% 7.68% 6.52% 3.79%Capital Goods 0.39% 0.00% 1.04% 1.59% 2.30%Cement 1.30% 0.00% 0.00% 0.71% 0.00%Chemicals & Fertilizers 0.83% 4.00% 0.52% 0.25% 1.99%Consumer Durables 0.00% 0.00% 0.21% 0.00% 0.28%Housing & Construction 0.26% 2.53% 0.90% 0.81% 1.06%Metals 1.46% 0.00% 1.31% 0.60% 0.23%Oil & Gas, Petroleum & Refinery 2.00% 0.52% 2.78% 0.93% 0.97%Power 1.29% 0.93% 0.99% 0.78% 0.75%Textiles 0.00% 1.41% 0.74% 0.00% 0.21%Transport & Shipping 0.20% 0.64% 0.00% 0.52% 0.00%ICE - Stocks 2.76% 2.67% 2.66% 2.62% 1.58%IT 0.98% 1.86% 1.04% 1.70% 1.15%Media 0.74% 0.00% 1.62% 0.70% 0.43%Telecom 1.04% 0.81% 0.00% 0.23% 0.00%Defensive 2.56% 2.30% 2.29% 4.82% 1.37%FMCG 0.59% 2.30% 0.54% 2.62% 0.64%Pharma 1.97% 0.00% 1.75% 2.20% 0.73%Other Equities 1.06% 1.67% 2.81% 0.48% 0.00%

Top 5 Equity Stocks

IndusInd Bank Ltd.Godrej Industries

Ltd.State Bank of India HDFC Bank Ltd Tata Motors - DVR

Reliance Industries Infosys Ltd. ICICI Bank Ltd ICICI Bank Ltd State Bank of IndiaSterlite Industries

(India) Ltd.Tata Motors - DVR -

A - ORDYBank of Baroda

Jammu and Kashmir Bank Ltd

JaiPrakash Associates Ltd

Tata Power Co LtdTata Global Bever-

ages LtdPage Industries Ltd ING Vysya Bank Ltd REC Ltd.

Bharti Airtel Ltd. Arvind Mills Ltd Federal bank ltd. Larsen & Toubro Ltd VST Industries Ltd.

Note: Return figures for all the Debt oriented schemes are absolute for <= 1 year and annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. ** Corpus as on Nov’12 (aggregate of all plans within the scheme) As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f from 1st October 2012.

37

FUnd Fact Sheet

Income Funds As on November 30, 2012

Name of Fund Reliance Dynamic Kotak Bond IDFC Birla Sun Life IDFCBond Fund Scheme - Plan A SSIF - Invt. Plan A DBF SSIF - MTP Plan A

Inception Date 16-Nov-04 25-Nov-99 14-Jul-00 24-Sep-04 8-Jul-03Corpus (in Crs) ** 2555.54 3339.85 576.14 14744.53 2320.82NAV (R) 15.1225 32.7750 27.0621 19.2347 19.4854

ReturnsCrisil Composite Bond Fund Index3 Months 2.33% 2.59% 2.52% 2.62% 2.54% 2.48%6 Months 4.72% 5.67% 5.58% 5.32% 5.31% 5.21%1 Year 9.52% 13.05% 14.35% 10.86% 10.81% 10.34%3 Years 6.73% 8.39% 8.07% 6.84% 8.18% 8.40%Since Inception 5.25% 9.54% 8.37% 8.32% 7.35%

Exit Load 1%^^ 1% ## 1% ## 0.5% $$ 0.6% #

Portfolio CompositionGilts/T-Bills 61.44% 49.74% 85.44% 24.59% 23.70%CDs/CPs 4.29% 4.44% 0.00% 9.17% 5.02%Securitised Debt 0.00% 1.51% 0.00% 4.52% 0.00%Corporate Debt 27.91% 42.14% 11.94% 52.85% 66.20%Cash 6.35% 2.17% 2.61% 8.87% 5.08%Sectoral CompositionFI and Bank Papers 12.95% 7.79% 7.02% 18.14% 19.37%PSU Bonds 9.58% 3.61% 0.00% 15.31% 28.86%NBFC Papers 0.00% 12.17% 0.11% 17.80% 12.31%Other Corporate Bonds 9.67% 24.52% 4.81% 15.29% 10.67%Gilts/T-Bills 61.44% 49.74% 85.44% 24.59% 23.70%Cash 6.35% 2.17% 2.61% 8.87% 5.08%

Avg. Portfolio Maturity (in Years) 9.37 10.27 11.55 3.18^ 3.33

Asset QualityAAA/Equivalent 93.49% 73.32% 95.78% 75.63% 85.80%AAA/P1+/A1+/PR1+ 25.69% 21.41% 7.73% 42.17% 57.02%Call/Cash/FD/G-Secs 67.80% 51.91% 88.06% 33.46% 28.78%

Sub AAA 6.51% 26.68% 4.22% 24.37% 14.20%AA+ 4.54% 14.35% 4.11% 11.91% 13.37%AA 1.96% 2.96% 0.11% 8.07% 0.83%Below AA 0.00% 9.37% 0.00% 4.39% 0.00%

Unrated 0.00% 0.00% 0.00% 0.00% 0.00%

Note: Return figures for all the Debt oriented schemes are absolute for <= 1 year and annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. ** Corpus as on Nov’ 12 (aggregate of all plans within the scheme) $$ If redemed within180 days. ## If redeemed within 1 year, # If redeemed within 9 months. ^^ If redeemed within 6 months ^ Modified Duration As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f from 1st October 2012.

FUnd Fact Sheet

38

Gilt Funds As on November 30, 2012

Name of Fund Kotak Birla Sun Life ICICI Prudential HDFC Gilt - Investment

Regular Plan G Sec Fund - LT GFIP Gilt Fund - LTP

Inception Date 23-Dec-98 28-Oct-99 19-Aug-99 25-Jul-01Corpus (in Crs) ** 509.17 355.56 335.96 283.95NAV (R) 39.0357 32.8493 38.1382 22.5121

Returns3 Months 2.25% 2.07% 1.90% 2.52%6 Months 5.49% 5.07% 4.65% 5.68%1 Year 15.99% 11.45% 11.47% 11.40%3 Years 8.30% 8.77% 6.47% 6.61%Since Inception 10.26% 9.50% 10.59% 7.41%

Exit Load Nil 1%* Nil 0.25%#

Portfolio CompositionGilts/T-Bills 118.17% 94.77% 96.91% 94.83%Cash/CBLO/Repo/T-bills -18.17% 5.23% 3.09% 5.17%

Maturity-wise composition1 - 5 Years 12.81% 0.00% 0.00% 2.98%6 - 10 Years 65.59% 15.50% 5.65% 40.95%11 - 15 Years 12.11% 42.23% 35.66% 35.59%15 - 20 Years 27.65% 37.04% 40.14% 13.48%> 20 Years 0.00% 0.00% 15.47% 1.83%

Average Maturity (in Years) 20.10 7.98^ 15.51 11.58

Note: Return figures for all the Debt oriented schemes are absolute for <= 1 year and annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. Note: * redeemed within 365 Days. Nil afterwards, # redeemed within 3 months. Nil afterwards **Corpus as on Nov’ 12 (aggregate of all plans within the scheme) ^ Modified Duration As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f from 1st October 2012.

Short Term Plans As on November 30, 2012

Name of Fund UTI Short Term Reliance IDFC SSIF ICICI Prudential Canara Robeco Income Fund - IP Short Term Plan Short Term Plan A STP Short Term Fund

Inception Date 18-Sep-07 23-Dec-02 14-Dec-00 25-Oct-01 31-Mar-09Corpus (in Crs) ** 2071.53 2504.49 3477.35 4581.51 450.73NAV (R) 13.4806 21.2370 23.4056 23.2275 13.0624

ReturnsCrisil Short Term Bond Fund Index 3 Months 2.23% 2.66% 2.48% 2.40% 2.44% 2.30%6 Months 4.73% 5.82% 5.29% 4.98% 5.21% 4.73%1 Year 9.23% 11.28% 9.96% 9.66% 9.59% 9.60%Since Inception 5.91% 7.85% 7.36% 7.88% 7.55%

Exit Load 0.75% ^ 0.50%# 0.5% ## 0.75% * 0.75%*

Portfolio CompositionGilts/T-Bills 6.53% 19.03% 0.00% 34.56% 2.22%CDs/CPs 10.42% 23.77% 12.70% 1.54% 37.45%Securitised Debt 4.84% 7.01% 0.00% 0.41% 0.00%Corporate Debt 73.91% 46.44% 84.06% 59.71% 33.74%Cash 4.30% 3.75% 3.24% 3.78% 26.60%Sectoral CompositionFI and Bank Papers 13.80% 33.89% 25.96% 21.45% 19.38%PSU Bonds 27.32% 10.47% 25.15% 16.99% 21.18%NBFC Papers 23.20% 18.34% 30.64% 13.51% 19.74%Other Corporate Bonds 24.84% 14.51% 15.01% 9.71% 10.89%Gilts/T-Bills 6.53% 19.03% 0.00% 34.56% 2.22%Cash 4.30% 3.75% 3.24% 3.78% 26.60%

Average Maturity (in Days) 1361 858 475 1142 544

Asset Quality (in %)AAA/Equivalent 64.29% 75.46% 70.07% 84.82% 92.67%AAA/P1+/A1+/PR1+ 53.46% 52.68% 66.83% 46.47% 63.85%Call/Cash/FD/G-Secs 10.83% 22.78% 3.24% 38.35% 28.81%


Unrated 0.00% 0.00% 0.00% 0.00% 0.00%Note: Return figures for all the Debt oriented schemes are absolute for <= 1 year and annualised for > 1 year. Past returns cannot be taken as an indicator of future performance.^ If Redeemed within 180 days. ## If redeemed within 3 months. # If redeemed within 6 months. * If redeemed within 6 months. $ If redeemed within 9 months. ** Corpus as on Nov’ 12(aggregate of all plans within the scheme) As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f from 1st October 2012.

FUnd Fact Sheet

39

FUnd Fact Sheet

40

Ultra Short Term Funds As on November 30, 2012

Name of Fund Tata Birla Sunlife Kotak HDFC F R I F - ICICI Prudential

Floater Savings Fund Floater - LT STF - WP Flexible Income - Prem

Inception Date 6-Sep-05 15-Apr-03 13-Aug-04 23-Oct-07 27-Sep-02Corpus (in Crs) ** 4136.13 6491.17 4168.54 5101.69 12744.17NAV (R) 1707.8853 217.5202 18.1445 19.4871 212.8726

Returns Crisil Liquid Fund Index1 Week 0.15% 0.16% 0.16% 0.16% 0.15% 0.16%1 Month 0.65% 0.71% 0.70% 0.71% 0.68% 0.71%3 Months 1.91% 2.16% 2.16% 2.22% 2.18% 2.15%6 Months 3.96% 4.59% 4.66% 4.71% 4.66% 4.58%

Exit Load Nil Nil Nil Nil Nil

Portfolio CompositionGilts/T-Bills 1.18% 1.10% 0.00% 0.00% 4.84%CDs/CPs 92.42% 59.45% 67.50% 79.31% 50.78%Securitised Debt 0.00% 0.00% 6.67% 0.50% 0.14%Corporate Debt 4.45% 39.38% 27.13% 22.28% 26.97%Cash 1.95% 0.08% -1.31% -2.09% 17.28%Sectoral CompositionFI & Bank Paper 59.85% 60.26% 37.54% 55.34% 43.53%PSU Bonds 4.75% 14.77% 5.67% 13.61% 6.29%NBFC Papers 23.42% 18.65% 29.96% 26.94% 20.51%Other Corporate Bonds 8.85% 5.15% 28.13% 6.20% 7.55%Gilts/T-Bills 1.18% 1.10% 0.00% 0.00% 4.84%Cash 1.95% 0.08% -1.31% -2.09% 17.28%

Average Maturity (in days) 82 44 106 78 54

Asset Quality (in %)AAA/Equivalent 96.15% 88.02% 88.37% 98.56% 95.63%AAA/P1+/A1+/PR1+ 93.02% 70.09% 83.08% 88.20% 54.40%Call/Cash/FD/G-Secs 3.13% 17.94% 5.29% 10.36% 41.22%


Unrated 0.00% 0.00% 0.00% 0.00% 1.79%

Note: Return figures for all the Debt oriented schemes are absolute for <= 1 year and annualised for > 1 year. Past returns cannot be taken as an indicator of future performance. Note: **Corpus as on Nov’12 (aggregate of all plans within the scheme) ^ Modified Duration As per SEBI circular dated September 13, 2012, fresh subscriptions/switch-ins will be accepted only under a single plan for all the schemes w.e.f from 1st October 2012.

111

AGRA | Gaurav KhadgawatHDFC Bank Ltd., Shop No.11, Block No.17/2/9, Friends Plaza, Sanjay Place, Agra – 282002Tel: +91-(0)562-4009691/93Email: [email protected]: +91-9313894331

AHMEDABAD | Amit KakarHDFC Bank Ltd., 2nd Floor, BPL House,Sumangalam Housing Co-operative Society,Beside Asia School, Drive In Road,Ahmedabad – 380054Tel: +91-(0)79-40086254Fax: +91-(0)79-40086258Email: [email protected]: +91-9376018672

BENGALURU | Samrat BoseHDFC Bank Ltd.,No - 70/2, Millers Boulevard,Millers Road, Bengaluru – 560052.Tel: +91-(0)80-41148196Email: [email protected]: +91-9341947849

BARODA | Jayesh Ahuja HDFC Bank Ltd., Arun Complex,36,Alkapuri Society, R.C. Dutt Road, Baroda – 390007.Tel: +91-(0)265-3248996Fax: +91-(0)265-2341142Email: [email protected]: +91-9909011987

CHANDIGARH | Gautam PrabhakarHDFC Bank House, 2nd Floor, 28,Industrial Area, Phase 1, Chandigarh – 160002.Tel: +91-(0)172-3924850Fax: +91-(0)172-3924997Email: [email protected]:+91-9316031247

CHENNAI | Maheswara ReddyHDFC Bank Ltd., Old No:34,New No: 105, “S.G.Mahal”,Habibullah Road,T-Nagar, Chennai – 600017.Tel: +91-(0)44-28346477Fax:+91-(0)44-28346478Email: [email protected]:+91-9380018903

COIMBATORE | Gaurav Kumar AgarwalHDFC Bank Ltd., Sri Sai Towers, 592, D.B. Road, RS Puram, Coimbatore – 641002.Tel: +91-(0)422-4392665Email: [email protected]: +91-9367155416

DEHRADUN | Nitin RattiHDFC Bank Ltd., 56, Rajpur Road, Dehradum, Uttarakhand – 248001.Email:[email protected]: +91-9359593938

DELHI | Bhavna KapoorHDFC Bank Ltd., B-6/3, Safdarjung Enclave, DDA Commercial Complex, Opp. Deer Park, New Delhi – 110029.Fax: +91-(0)11-41392118E-mail: [email protected]: +91-9313106522

GOA | Silvestre PereiraHDFC Bank Ltd., Rangavi Bldg. Opp Margo Municipality Margo,Goa – 403601Tel: +91-(0)832-6694607Fax: +91-(0)832-2733580Email: [email protected] Mobile: +91-9325637678

GUWAHATI | Joy Shankar MajumderHDFC Bank Ltd.,G.S. Road, Near Rajiv Bhawan,Bhanagar Guwahati Assam – 781005.Email: [email protected] Mobile: +91-9435540311

HYDERABAD | T Kalyan Deepak6-1-73, HDFC Bank Ltd.,3rd Floor, Saeed Plaza, Lakadikapool, Hyderabad – 500004.Tel: +91-(0)40-66103354Email: [email protected]: +91-9390037065

INDORE | Shruti AgrawalHDFC Bank Ltd. HDFC Bank House,Brilliant Avenue, 5th Floor, Scheme no 94 Sector BBehind Bombay Hospital, Ring Road Indore – 452001 Tel: +91-(0)731-3929700 (Extn: 5006)Fax: +91-(0)731-3929717Email : [email protected] : +91-9755339000

JAMMU | Anmol Kumar GuptaHDFC Bank Ltd., CB-13,Rail-Head Commercial Complex,Bahu Plaza, Gandhi Nagar, Jammu – 180004.Email: [email protected]: +91-9419905289

KANPUR | Amit A JaiswalHDFC Bank Ltd., Krishna Tower,15/63, Civil Lines, Kanpur – 208001.Email: [email protected]: +91-9335086822

KOCHI | Eapen ChakkoHDFC Bank Ltd., Choice Towers,Manorama Junction, Kochi – 682016.Tel: +91-(0)484-4433103Fax: +91-(0)484-2312772Email: [email protected]: +91-9388336471

KOLKATA | Amit DoshiEquities & Private Banking GroupHDFC Bank Limited,Central Plaza, Ground Floor2/6 Sarat Bose Road Kolkata – 700020Email: [email protected]: +91-9331253457

LUCKNOW | Praveen GuptaHDFC Bank Ltd, 31/31 M.G Road Hazratganj, Lucknow – 226001 Email: [email protected]: +91-9336141197

LUDHIANA | Bhaskar Singh |Param Vir SinghHDFC Bank Ltd., First Mall,The Mall, Ludhiana – 141001.Tel: +91-(0)161- 3013797Mobile: +9876764802Mobile: +9888475751Email: [email protected]: [email protected]

MUMBAI |Parimal Shah | Hari Iyer | Riyaz MarfatiaHDFC Bank House, 1st floor, C.S. No. 6/242, Senapati Bapat Marg,Lower Parel, Mumbai – 400013.Tel: +91-(0)22-66521000 ext. 1180+91-(0)22-66521000 ext. 1105+91-(0)22-66521000 ext. 1111Fax: +91-(0)22-24900983/+91-(0)22-24900858Email: [email protected]: [email protected]: [email protected]: +91-9322292209Mobile: +91-9820451507Mobile: +91-9323450211

NAGPUR | Leena WarkadeHDFC Bank Ltd.,Bharuka Bhavan, Opp. Yeshwant Stadium,Dhantoli, Nagpur – 440012.Tel: +91-(0)712-6633650Fax: +91-(0)712-6633659Email: [email protected]: +91-9371436522

NASHIK | Ajit PandeyHDFC Bank Ltd.,Vastushri No. 3, Thatte Nagar, Gangapur College Link Road, Nashik – 422005.Tel: +91-(0)253-6628576Fax: +91-(0)253-2452089Email: [email protected]: +91-9890998848

PANIPAT | Manpreet SarnaHDFC Bank Ltd., Harmony Towers, G T Road, Panipat – 132103.Email: [email protected]: +91-9355501098

PUNE | Amit MaratheHDFC Bank Ltd.,5th Floor, Millenium Towers,Opp Sane Dairy, Deccan Gymkhana,Bhandarkar Road, Pune – 411004.Tel: +91-(0)20-41227094Email: [email protected]: +91-9325102533

RANCHI | Amit DoshiHDFC Bank Ltd.,Opp Durga Mandir Ratu Road,Ranchi Jharkhand – 834001.Email: [email protected]: +91-9331253457

VARANASI | Tanay RastogiHDFC Bank Ltd.,M S Plaza Rathyatra Crossing,Varanasi Uttar Pradesh – 221010.Tel: +91-(0)542-3256783Fax: +91-(0)542-2226302Email: [email protected] Mobile: +91-7499155041

EQUITIES & PRIVATE BANKING OFFICES

Disclaimer: This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable, HDFC Bank Limited (“HDFC Bank”) do not warrant its completeness and accuracy. Whilst we are not soliciting any action based upon this information, all care has been taken to ensure that the facts are accurate and opinions given fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument The recipient of this information should rely on their own investigations and take their own professional advice. Neither HDFC Bank nor other person shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material. HDFC Bank and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) mentioned herein. HDFC Bank may at any time solicit or provide commercial banking, credit, advisory or other services to the issuer of any security referred to herein. According, information may be available to HDFC Bank, which is not reflected in this material, and HDFC Bank may have acted upon or used the information prior to, or immediately following its publication. HDFC Bank House, 1st Floor, C.S. No. 6\ 242, Senapati Bapat Marg, Lower Parel, Mumbai 400013. Phone: (91)-22-6652 1000 ext 1311, Fax: (91)-22-24900983 \ 24900858

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