Happy Returns a ny - Aditya Birla Capital · From the desk of CEO 3 NOVEMBER 2004 Dear Investor , A...

Birla

Birla

N O V E M B E R 2 0 0 4

The name inspires trust

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Dividend History

2

#EQUITY SCHEMES Declared Dividend Dividend Face value Cum Dividend NAVon date (%) (Rs. per unit) (Rs.) (Rs. per unit)

Birla Advantage Fund 27-Aug-99 20 2.00 10.00 33.8122-Mar-00 80 8.00 10.00 70.3728-Nov-03 30 3.00 10.00 44.8823-Jan-04 20 2.00 10.00 47.3312-Mar-04 25 2.50 10.00 46.10

Birla Equity Plan 31-Mar-00 25 2.50 10.00 30.4315-Feb-02 10 1.00 10.00 12.4517-Oct-03 15 1.50 10.00 24.8926-Mar-04 15 1.50 10.00 26.90

Birla India Opportunities Fund 04-Feb-00 25 2.50 10.00 28.97

14-Jan-03 10 1.00 10.00 12.1627-Feb-04 60 6.00 10.00 18.6926-Oct-04 12.5 1.25 10.00 14.17

Birla MNC Fund 04-Feb-00 25 2.50 10.00 39.4622-Feb-02 40 4.00 10.00 27.1629-Aug-03 50 5.00 10.00 30.58

Birla Midcap Fund 24-Jan-03 5 0.50 10.00 10.5219-Jun-03 10 1.00 10.00 11.8322-Jul-03 10 1.00 10.00 11.8124-Dec-03 60 6.00 10.00 18.358-Oct-04 12.5 1.25 10.00 13.72

Birla Dividend Yield 30-May-03 8 0.80 10.00 11.84Plus 13-Jun-03 5 0.50 10.00 10.88

24-Jul-03 12 1.20 10.00 11.6219-Sept-03 18 1.80 10.00 12.0931-Oct-03 10 1.00 10.00 11.8726-Dec-03 15 1.50 10.00 13.9313-Feb-04 10 1.00 10.00 12.5828-Sep-04 8 0.80 10.00 11.57

Birla Index Fund 17-Oct-03 56 5.60 10.00 16.1903-Feb-04 16.5 1.65 10.00 11.9857

Birla Balance 17-Oct-03 15 1.50 10.00 13.32

#DEBT SCHEMES Declared Dividend Dividend Face value Cum Dividend NAVon date (%) (Rs. per unit) (Rs.) (Rs. per unit)

Birla Income Plus 15-Jun-04 1.00 0.10 10.00 10.3371(Retail) 15-Sep-04 0.5640* 0.05640* 10.00 10.1724Birla Income Plus 26-Jun-04 2.530 0.2530 10.00 26.3134(Institutional) 26-Sep-04 2.8540* 0.2854* 10.00 25.7696Birla Gilt PlusLiquid Plan 15-Jun-04 0.941 0.0941 10.00 10.4982

15-Sep-04 1.0620* 0.10620* 10.00 10.5805PF Plan 15-Jun-04 1.20 0.120 10.00 11.3068

15-Sep-04 1.354* 0.1354* 10.00 10.9025Regular Plan 15-Jun-04 1.25 0.125 10.00 11.6806

15-Sep-04 1.41* 0.141* 10.00 11.2849Birla Cash PlusInstitutional Plan-Monthly Payout Option 29-Jan-04 0.363 0.0363 10.00 10.0411

26-Feb-04 0.298 0.0298 10.00 10.033630-Mar-04 0.378 0.0378 10.00 10.042629-Apr-04 0.332 0.0332 10.00 10.037528-May-04 0.319 0.0319 10.00 10.034729-Jun-04 0.313 0.0313 10.00 10.004930-Jul-04 0.398* 0.0398* 10.00 10.002130-Aug-04 0.389* 0.0389* 10.00 10.037729-Sep-04 0.3680* 0.0368* 10.00 10.036829-Oct-04 0.372* 0.0372* 10.00 10.0000

Birla MIP (Since January 2004)(Monthly Dividend Plan) 30-Jan-04 0.80 0.080 10.00 11.2671

27-Feb-04 0.80 0.080 10.00 11.204526-Mar-04 0.80 0.080 10.00 11.149630-Apr-04 0.80 0.080 10.00 11.259228-May-04 0.80 0.080 10.00 10.995125-Jun-04 0.70 0.070 10.00 10.713030-Jul-04 0.79* 0.079* 10.00 10.712527-Aug-04 0.70* 0.070* 10.00 10.746424-Sep-04 0.70* 0.070* 10.00 10.818929-Oct-04 0.70* 0.070* 10.00 10.7686

Birla MIP II - Savings 5 Plan 29-Oct-04 0.45* 0.045* 10.00 10.1246Birla MIP II - Wealth 25 Plan 29-Oct-04 0.70* 0.070* 10.00 10.2827

Birla Floating Rate Fund(Long Term Plan) 28-Feb-04 0.319 0.0319 10.00 10.3862

27-Mar-04 0.323 0.0323 10.00 10.386730-Apr-04 0.402 0.0402 10.00 10.397028-May-04 0.310 0.0310 10.00 10.386625-Jun-04 0.314 0.0314 10.00 10.360431-Jul-04 0.439* 0.0439* 10.00 10.356827-Aug-04 0.352* 0.0352* 10.00 10.388124-Sep-04 0.382* 0.0382* 10.00 10.391129-Oct-04 0.45* 0.045* 10.00 10.4072

* Gross Dividend declared. # In the hands of the Investor. Past performance may or may not be sustained in future.

Dividend History 2

From the CEO's Desk 3

Market Outlook 4

Birla Advantage Fund 5

Birla Dividend Yield Plus 6

Birla Midcap Fund 7

Birla MNC Fund 8

Birla India

Opportunities Fund 9

Birla Index Fund 10

Birla Equity Plan 11

Birla Balance 12

Birla MIP 13

Birla MIP II 14 - 15

Birla Asset Allocation Fund 16

Birla Income Plus 17

Birla Bond Plus 18

Birla Cash Plus 19

Birla Gilt Plus 20

Birla Bond Index Fund 21

Birla Floating Rate Fund 22

Birla Dynamic Bond Fund 23

India Advantage Fund 24

Ranking Methodologies 25

Load Structure 26

Performance 27

Contact Details 28

CONTENTS

(For select Schemes)

* Dividend distribution is not assured and is subject to availability of distributable surplus. After payment of dividend, NAV will fall to the extent of payout.

N O V E M B E R 2 0 0 4

@ Birla MIP II Savings 5 Plan and Wealth 25 Plan * declare maiden dividends on October 29, 2004.

@ An open- ended fund. Monthly income is not assured and is subject to availability of distributable surplus

From the desk of CEO

3

N O V E M B E R 2 0 0 4

Dear Investor,

A very Happy Diwali and a prosperous New Year to you and your family from

everyone here at Birla Mutual Fund.

We are happy to inform you that Birla Sun Life AMC Limited has signed an

agreement with Alliance Capital Asset Management (India) Private Limited to

acquire the rights to manage the Indian mutual fund assets of Alliance Capital

Mutual Fund, subject to receipt of necessary regulatory approvals.

This transaction will consolidate BSLAMC's prominent position in the Indian mutual fund industry by

increasing the assets under management and broadening its investor base. Alliance Capital had assets

under management of Rs.1771 crores as of October 30, 2004, of which equity mutual fund assets

represented 33% per cent. Based on October 30, 2004 information, the combined AUM of BSLAMC after

the acquisition would increase to Rs.10967 crores.

Birla Mutual Fund, which has been in the Indian market place for the last 10 years, has a spectrum of 19

schemes including 2 offshore funds, designed to cater to every need of the investor.

One of the reasons for the acquisition has been the good fit that we have observed between the two funds, as

Alliance Capital has quite a few specialty funds. The number of schemes that we would offer post acquisition

would go upto 30, offering you a wide array of products to choose from.

We at Birla Mutual Fund have always endeavored to provide you convenience by offering services like Email

alerts, Consolidation of your investments, Online account access, Direct credit facility, etc.

Thank you for having invested with us.

Warm regards,

Yours truly

For Birla Sunlife AMC Ltd.

S V Prasad

Chief Executive Officer

Market Outlook

4

Equity Markets

On the macro front, we had the mid-term credit policy review by the RBI along with a few

economic data releases by the Government. On the micro front, Corporate India

declared its second quarter results.

The mid-term review of the credit policy by the RBI was in line with market expectations.

The GDP growth estimates have been lowered from 6.5-7% to 6-6.5% reflecting

concerns of a deficient monsoon; the annual average inflation rate has been revised

upwards to 6.5% from 5% on account of high commodity and crude oil prices. Though

the Bank rate remained unchanged at 6%, the Repo rate has been increased by 25 bps

to 4.75% signaling the interest rates trajectory in the money market. Non-food credit

growth in July-Sept'04 was at decade high at 26% while overall credit growth was close

to 24% indicating robust economic activity.

The Government has reined in the fiscal deficit to Rs. 532 bn or 38.7% of the Budget

Estimate during the first half as against 53% in 1HFY'04 mainly on account of squeeze

in expenditure. However the revenue deficit of Rs. 600 bn (78.7% of budget estimates)

continues to be a cause of concern. FDI investment cap in airport infrastructure has

been increased to 49%.

India Inc. declared its half yearly performance in October. Barring few exceptions,

performance was broadly in line with expectations. Companies proved their resilience

to inflationary pressures by posting higher sales growth and generating better operating

efficiencies. According to a study done by The Economic Times of the results of 1,340

companies, the aggregate sales growth in July-Sept'04 period was 21% while net profit

growth was 20%. The net profit growth would have been higher had the companies not

witnessed a substantial 24% drop in other income.

On a global front, China's Central Bank raised its benchmark one year lending rates from

5.31% to 5.58% (the first time in nine years) to rein in its overheated economy. The

monetary tightening measures will have their own impact on the global commodity

prices and other global economies. In other developments, volatility persists in the oil

prices, with US light crude futures crossing the psychological $55 mark during the

month but shedding the gains towards the month end.

In India, markets continued their upward movement during the month with the Sensex

moving from 5584 to 5672 registering a gain of 1.6%. FIIs were net buyers with inflows

of around US $876 mn. The rupee closed at a four and a half month high of 45.38 to a

dollar.

Despite short-term hiccups, the long-term outlook for equities remains positive, with

growth adjusted valuations being below the long-term average. The emerging

outsourcing opportunity across sectors like IT, Pharmaceuticals, Capital goods,

Engineering and Textiles along with strong domestic demand will drive the corporate

earnings in future. The strong FII inflows in the past few months suggest that India

continues to remain amongst the top destination for foreign investors. The recent

changes in the capital gain tax structure have also added to the attractiveness for

domestic investors, albeit increasing the scope for short term trading and volatility.

While the long-term India story remains intact, short term concerns such as global oil

prices, domestic inflation and the China factor may temper the stock market.

Debt Markets

The sentiment was bearish in the Indian government securities market with the yield on

the key 10-year benchmark rising by about 80 bps during the month. The key 10-year

yield rose steadily from 6.03 per cent at the start of the month to 6.8 per cent on October

26, 2004, on the announcement of the mid-term Credit Policy.

The spiralling global oil prices leading to high domestic inflation triggered investors'

expectation of the RBI raising interest rates in the mid-term Credit Policy review.

Subsequently, the RBI raised the repo rate for the first time in 4 years by 25 bps to 4.75

per cent. Earlier in September 2004, the RBI had raised the CRR by 50 bps to 5 per cent,

in order to tame inflation. The RBI Governor has also stated that the CRR would not be

raised for the rest of the year.

With the WPI hovering between 7 and 8 per cent over the past 3½ months from 4.32 per

cent in late April, bond yields have followed suit with the 10-year yield rising by 1.75

per cent over this period. Inflation for the week-ended October 29, 2004 stood at 7.1

per cent. The RBI also revised the annual inflation rate forecast by 1.5 per cent to 6.5 per

cent and regarded price stability as a key policy objective.

Among other events that happened last month, the G-Secs market held the auction of

the 7.38% GOI 2015 paper for Rs 6,000 crore. The security was auctioned at a higher-

than-expected yield of 6.987 per cent, but was fully subscribed.

The government also announced its market stabilization scheme (MSS) for issuing

treasury bills for Rs 25,500 crore, for Q3FY'05. The news of only short-term treasury

bills being sold under MSS brought some cheer to the market.

There was a tightening of liquidity in the repo market with repo outstanding falling to

Rs 5,095 crore from Rs 9,610 crore in the preceding weeks. Call money rates hardened

over the month, hovering in the range of 4.6-4.8 per cent towards the month end.

Global oil prices remained very high in October with the US light crude around $50 a

barrel, reaching an all time high of $55.33 a barrel in mid-October.

The rupee continued its streak of appreciation, gaining by 0.27 per cent over the month

to Rs 45.68, shrugging off oil price concerns. This was mainly due to dollar inflows

towards the NTPC IPO and the dollar weakening against the Euro and Yen, on the back of

record US trade deficit.

In the short term, the market is likely to be bearish due to the following reasons: The

repo rate hike being sooner than expected, likely poor demand for gilts from the banking

sectors due to strong credit demand and high global commodity prices that will

continue to have an upward pressure on inflation. Any positive development on the

global oil and commodity prices and inflation would revive the market.

N O V E M B E R 2 0 0 4

Birla Advantage Fund

Plan A - Dividend, Plan B - Growth

INVESTMENT PORTFOLIO - October 29, 2004

As on October 29, 2004Security Description Value % of(Rs.in Lacs) Net Assets

Top 10 Equity & Equity related InstrumentsListed/ Awaitng Listing on Stock exchange

Bharti Tele-Ventures Ltd. 2926.25 6.98

Infosys Technologies Ltd. 2917.34 6.96

Tata Consultancy Services Ltd. 2583.91 6.17

Siemens Ltd. 2171.52 5.18

United Phosphorous Ltd. 2124.52 5.07

Glaxosmithkline Pharmaceuticals Ltd. 1684.26 4.02

CMC Ltd. 1459.19 3.48

Grasim Industries Ltd. 1393.96 3.33

Chennai Petroleum Corporation Ltd. 1335.35 3.19

Gujarat Ambuja Cements Ltd. 1265.22 3.02

Others 21232.28 50.68

Preference Share 0.20Thermax Ltd. 83.49 0.20

Corporate Debt 0.05Hindustan Lever Ltd. 21.14 0.05

Cash & Current Assets 807.12 1.93

41093.79 98.08

Net Assets 41,900.92 100.00

Plan A 44.33Plan B 52.16

PLAN NAV(Rs./UNIT)

An open-ended diversified equity fund

5

Fund Manager's Speak - Birla Advantage Fund (BAF)

Nishid Shah

! Weightage in agro chemicals and MNC pharma increased, to capitalize on opportunities in exports sector and IPR related industries.

! Increased exposure to banks in view of substantial credit growth seen in system and cheap valuations.

! Reduced exposure in auto on account of high crude oil prices.

! Portfolio attractive in terms of valuation and earnings growth.

Asset Allocation (%)

(as on October 29, 2004)

For complete portfolio, please send an e-mail with subject line 'Portfolio' to [email protected].

Regular Extra Advantage Plan (REAP)

REAP is a powerful tool that can help you create wealth over time.

If you had invested* in BAF...

Monthly Investment 1,000

Number of Investment periods (Since Inception) 115

Total Investment 115,000

Value of Investment (As of October 31, 2004) 383,810

Return on Investment 23.87%

* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in BSE Sensex would have given a return of 8.69%.

** Dividend reinvestment NAVs have been considered for the analyses.

Inception date : February 24, 1995

N O V E M B E R 2 0 0 4

IT Consulting & Services 13.70

Banks 12.54

Pharmaceuticals 11.49

Electrical Components & Equipment 7.15

Integrated Telecommunication Services 6.98

Heavy Electrical Equipment 5.63

Fertilizers & Agricultural Chemicals 5.56

Oil & Gas Refining & Marketing 5.24

Construction Materials 5.21

Computer Hardware 3.48

Industrial Conglomerates 3.33

Consumer Finance 2.97

Steel 2.96

Motorcycle Manufacturers 2.91

Household Appliances 2.44

Automobile Manufacturers 2.20

Other Equities & Preference Shares 3.10

Mutual Fund Units 1.13

Corporate Debt 0.05

Cash & Current Assets 1.93

Did you know that we have multiple dateREAP options wherein an investor can average out his entry point twice a month or even thrice a month as per his choice?

Did you know that BDYP's investment universe consists primarily of those companies which have a Dividend Yield of at least 2 times that of the BSE sensex?

Birla Dividend Yield Plus


Security Description Value % of(Rs.in Lacs) Net Assets


PLAN NAV(Rs./UNIT)

6

An open-ended growth scheme investing in high dividend yield companies




As on October 29, 2004

Fund Manager's Speak - Birla Dividend Yield Plus(BDYP) Deven Sangoi

! Current dividend yield of portfolio 4.76% as compared to BSE Sensex dividend yield of 2.09%.

! Higher allocation to stand-alone refiners and shipping has benefited Fund's performance.

! Increased allocation to fast moving consumer sector.

! Current P/E of portfolio 6.8 times FY-05 earnings.

Top 10 Equity & Equity related Instruments

Listed/ Awaitng Listing on Stock exchange

The Great Eastern Shipping Co. Ltd. 3,104.06 6.41

Kochi Refineries Ltd. 2,870.20 5.92

Hero Honda Motors Ltd. 2,682.80 5.54

Union Bank of India 2,328.31 4.80

Crompton Greaves Ltd. 2,197.08 4.53

Bongaigaon Refinery & Petrochemicals Ltd 2,142.45 4.42

Shipping Corporation of India Ltd. 2,120.75 4.38

Alfa Laval (India) Ltd. 1,980.97 4.09

Hindustan Lever Ltd. 1,682.25 3.47

Essel Propack Ltd. 1,585.63 3.27

Others 21,637.58 44.65

Corporate Debt 0.02

Hindustan Lever Ltd. (AAA) 12.08 0.02

Preference Share 0.12

Thermax Ltd. 57.38 0.12


44,332.08 91.48

Net Assets 48462.76 100.00



REAP is a powerful tool that can help you create wealth over

time. If you had invested* in BDYP...






* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in CNX 500 would have given a return of 39.24%.

Inception date: February 10, 2003

N O V E M B E R 2 0 0 4


Banks 12.83

Marine 10.79

Industrial Machinery 9.13

Household Products 8.41



Commodity Chemicals 3.84

Paper Packaging 3.27



Aluminium 2.54

Diversified Chemicals 2.24

Other Equities & Preference shares 5.28

Corporate Debt 0.02


Birla Midcap Fund




PLAN NAV(Rs./UNIT)

7

Fund Manager's Speak - Birla Midcap Fund (BMC)

Nishid Shah

! Continue to remain over weight on capital goods sector.

! Pharma allocations contributed positively to Fund performance.

! Stand-alone refinery allocations have done very well.

! Remain bullish on select mid-caps and expect them to outperform market in medium to long-term.

An open-ended growth scheme investing primarily in midcap stocks





Top 10 Equity & Equity related Instruments



Aventis Pharma Ltd. 613.88 6.60

Birla Corporation Ltd. 573.12 6.16

Eicher Motors Ltd. 509.23 5.48

Britannia Industries Ltd. 480.90 5.17

Siemens Ltd. 464.24 4.99

Geometric Software Solutions Co. Ltd. 430.02 4.62


Voltas Ltd. 403.91 4.34

Credit Rating Information Ser.of (I) Ltd 397.78 4.28

Others 3,697.98 39.75




8,693.49 93.47

Net Assets 9299.86 100.00




time. If you had invested* in BMC...






* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in CNX Midcap would have given a return of 70.51%. Birla Midcap Fund typically invests in equity and related instruments of companies with a market capitalisation of between Rs. 150 crores to Rs. 1500 crores.

Inception date : October 16, 2002

N O V E M B E R 2 0 0 4



Banks 7.08



Household Appliances 5.71

Auto Parts & Equipment 5.66


Packaged Foods 5.17



Diversified Financial Services 4.28

Steel 3.94


Personal Products 2.86

Other Equities & Preference shares 3.51


Did you know that if you invest in any Equity Fund and stay invested for more than a year, you would not be subjected to any long-term capital gains tax?

Birla MNC Fund



Top 10 Equity & Equity related InstrumentsListed/ Awaitng Listing on Stock exchangeGlaxosmithkline Pharmaceuticals Ltd. 1,111.12 9.18Siemens Ltd. 920.00 7.60Britannia Industries Ltd. 784.21 6.48Aventis Pharma Ltd. 744.17 6.15Monsanto India Ltd. 704.11 5.82Hughes Software Systems Ltd. 651.34 5.38Automotive Axles Ltd. 647.02 5.35Motor Industries Company Ltd. 594.14 4.91Alfa Laval (India) Ltd. 581.81 4.81I T C Ltd. 506.80 4.19Others 4,144.23 34.25

Corporate Debt 0.02Hindustan Lever Ltd. (AAA) 3.02 0.02


11,388.94 94.12

Net Assets 12101.56 100.00


PLAN NAV(Rs./UNIT)

8

Fund Manager's Speak - Birla MNC Fund (BMNC)

Nishid Shah

! Reduced exposure to auto on account of high crude oil prices.

! Increased exposure to agro chemicals and MNC pharma to capitalize on upcoming IPR opportunity.

! Continue to be concentrated on MNC pharma, software, capital goods and FMCG.

An open-ended growth scheme investing in multinational companies








time. If you had invested* in BMNC...


Number of Investment periods (Since takeover) 58




* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in CNX MNC would have given a return of 3.56%.

Takeover date : December 27, 1999

N O V E M B E R 2 0 0 4



Packaged Foods 10.24





Tobacco 4.19

Personal Products 3.99


Trading Companies & Distributors 3.50

Telecommunications Equipment 2.89

Other Equities 3.93

Corporate Debt 0.02


Do you know that Lateral Shifts within Equity schemes of Birla MF do not attract any Entry Loads?

Birla India Opportunities Fund




PLAN NAV(Rs./UNIT)

9

Fund Manager's Speak - Birla India Opportunities Fund(BIOF)

Deven Sangoi

! Portfolio has rich mix of mid-cap companies and large-cap IT companies.

! Increased allocation to large-cap pharma companies.

! Seeing increased evidence of outsourcing picking up from manufacturing sector.

An open-ended equity fund that focuses on businessesemanating from India's competitive strengths




@ for methodology please refer page 25

@ICRA Online Awards 2004 : Ranked MFR1 at in open-ended sectoral

schemes - technology (one and three years)

(Past performance is no guarantee of future results.)

(as on October 29, 2004)Top 10 Equity & Equity related InstrumentsListed/ Awaitng Listing on Stock exchangeHimatsingka Seide Ltd. 571.22 5.17Tata Consultancy Services Ltd. 532.72 4.82Bharat Electronics Ltd. 505.09 4.57United Phosphorous Ltd. 492.30 4.46Geometric Software Solutions Co. Ltd. 474.78 4.30Infosys Technologies Ltd. 462.34 4.19Alfa Laval (India) Ltd. 452.78 4.10Thermax Ltd. 450.31 4.08Satyam Computer Services Ltd. 448.86 4.06HCL Infosystems Ltd. 410.08 3.71Others 4,770.91 43.23


9,571.40 86.70

Net Assets 11042.49 100.00




time. If you had invested* in BIOF...


Number of Investment periods (Since takeover) 58




* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in CNX 500 would have given a return of 21.26%.

Takeover date : December 27, 1999

N O V E M B E R 2 0 0 4






Textiles 5.17



Paper Packaging 3.24


Publishing and Printing 2.60


Did you know that more outsourcing stories like IT are expected to unfold over the next few years in sectors like Pharma, Auto ancillaries, Engineering, Textiles, Commodities, Electronic components, Agro chemicals, etc.? BIOF would look towards capitalising on these.

Birla Index Fund



Top 10 Equity & Equity related InstrumentsListed/ Awaitng Listing on Stock exchangeOil and Natural Gas Corporation Ltd. 252.91 14.62Reliance Industries Ltd. 165.99 9.59Infosys Technologies Ltd. 114.55 6.62Wipro Ltd. 103.19 5.96Bharti Tele-Ventures Ltd. 65.43 3.78Hindustan Lever Ltd. 61.71 3.56I T C Ltd. 60.56 3.50State Bank of India 52.90 3.06ICICI Bank Ltd. 48.74 2.82Ranbaxy Laboratories Ltd. 45.86 2.65Others 735.68 43.15


1,757.04 97.77

Net Assets 1730.24 100.00

Plan A 10.3202Plan B 18.4569

PLAN NAV(Rs./UNIT)

10

Fund Manager's Speak - Birla Index Fund (BIF)

Navneet Munot

! Fund performance for the month was 0.275% as against Nifty's return of 0.1975%.

! Outlook for Equity markets continues to remain positive considering strong domestic economy and corporate fundamentals.

An open-ended index fund tracking the Nifty








time. If you had invested* in BIF...






* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in S & P Nifty would have given a return of 31.95%.

Inception date : September 17, 2002

N O V E M B E R 2 0 0 4


Oil & Gas Exploration 14.62

Commodity Chemicals 10.20

Banks 8.87



Steel 4.72


Household Products 3.82

Tobacco 3.50

Aluminium 2.83




Electric Utilities 2.28

Gas Utilities 2.14


Other Equities 5.54


Did you know that you can invest in Birla Index Fund without any Entry or Exit load?

Birla Equity Plan#

****


29.23

NAV(Rs./UNIT)

11

Fund Manager's Speak - Birla Equity Plan (BEP)

Nishid Shah

! Increased weightage in Bharti Tele Ventures and Chennai Petroleum.

! Burroughs Welcome holding converted into Glaxo Smithkline Pharmaceuticals with completion of merger formalities.

! Overweight position maintained in Pharmaceuticals, Software Services, Banking and FMCG sectors.

An open-ended Equity Linked Savings Scheme (ELSS)




# for methodology please refer page 25

^ for methodology please refer page 25

@ for methodology please refer page 25

@ICRA Online Awards 2004Ranked MFR1 at in open-

ended equity linked savings schemes (1 year)

CNBC-TV 18-BNP Paribas Awards 2004^

Best performing open ended Tax Saving ELSS (1 year)


(as on October 29, 2004)Top 10 Equity & Equity related InstrumentsListed/ Awaitng Listing on Stock exchangeBharti Tele-Ventures Ltd. 219.59 5.67Britannia Industries Ltd. 200.32 5.17Siemens Ltd. 182.39 4.71Glaxosmithkline Pharmaceuticals Ltd. 174.42 4.50Geometric Software Solutions Co. Ltd. 158.30 4.08CMC Ltd. 155.56 4.01Eicher Motors Ltd. 154.49 3.99Birla Corporation Ltd. 145.13 3.75Chennai Petroleum Corporation Ltd. 144.92 3.74Fulford (India) Ltd. 135.39 3.49Others 1,895.02 48.90


3,565.54 92.00

Net Assets 3875.34 100.00



REAP is a powerful tool that can help you create wealth over time.

If you had invested* in BEP...






* Load has not been taken into consideration. Past performance may or may not be sustained in future. In the same period, a REAP in BSE Sensex would have given a return of 12.97%.

** Dividend reinvestment NAVs have been considered for the analyses.

Inception date : February 16, 1999

N O V E M B E R 2 0 0 4


Banks 10.31

Packaged Foods 8.40





Steel 5.12





Hotels 2.92

Diversified Financial Services 2.08

Other Equities 5.95


Did you know that the minimum investment amount in BEP is only Rs. 500? Investors may consider buying into the fund in small lots spread out over the year, to reduce the risks associated with the equity market.

Birla Balance


Security Description Value % of Rating(Rs.in Lacs) Net Assets

Plan A 13.83 Plan B 15.63

PLAN NAV(Rs./UNIT)

Fund Managers' Speak - Birla Balance

Nishid Shah & Navneet Munot

! Increased exposure to agro chemicals and pharmaceuticals.

! Exposure to cement sector increased to take opportunity of favourable demand supply situation.

! Portfolio remains well diversified across banks, pharma, software, cement, capital goods and telecom.

! Equity exposure (including Mutual Funds units) around 63%.

An open-ended balanced fund investing in a mix of Debt and Equity


CRISIL~CPR 2 (Plan B) Open End Balanced Fund^^



12

Rating profile (%)

^^ for methodology please refer page 25

(as on October 29, 2004)Top 10 Equity & Equity related Instruments



Bharti Tele-Ventures Ltd. 662.55 4.18


Crompton Greaves Ltd. 470.97 2.97

Gujarat Ambuja Cements Ltd. 426.41 2.69



Bharat Heavy Electricals Ltd. 378.72 2.39

CMC Ltd. 364.13 2.30


Others 4,727.07 29.83

9,392.35 59.27



Debt Instruments


Birla Index Fund 474.14 2.99

Cash & Current Assets 1,232.63 7.78

Money Market Instruments 11.14

Kotak Mahindra Bank Ltd. 1,472.58 9.29 P1+

Export-Import Bank of India 293.28 1.85 P1+

PSU/PFI Bonds/Banks 6.37

Citi Bank 838.80 5.29 AAA

HDFC Bank Ltd. 171.26 1.08 AAA

Government Bond 4.88

Govt Bond 9.39% 2011 567.00 3.58 Sovereign


Securitised Debt 3.56

Loan Receivable Trust II 2003 (Guj Amb) 564.76 3.56 AA+(SO)

Corporate Debt 3.23

GE Capital Services India 500.04 3.16 P1+

Hindustan Lever Ltd. 12.08 0.08 AAA

Net Assets 15,848.02 100.00




time. If you had invested* in Birla Balance...






* Load has not been taken into consideration. Past performance may or may not be sustained in future. Benchmark return since inception not available.

Inception date : October 12, 1999

N O V E M B E R 2 0 0 4

Banks 8.45










Other Equities & Preference Shares 11.69

Mutual Fund units 2.99

Cash, Debt and Other Current Assets 36.97

AAA 20.74

AA / AA+ / AA+(SO) 3.56

Sovereign 4.88

Unrated 0.00

Equity & Preference Shares 60.04



Plan A - Monthly Dividend, Plan B - Monthly Payment, Plan C - Growth


DEBT INSTRUMENTS

Money Market InstrumentsKotak Mahindra Bank Ltd 486.59 0.59 P1+Avaya Global Connect Ltd @ 299.85 0.36 P1+

786.44 0.96Top 10 Equity & Equity relatedListed/ Awaiting listing on stock exchangeTata Consultancy Services Ltd. 952.37 1.16 -Infosys Technologies Ltd. 934.14 1.13 -Bharti Tele-Ventures Ltd 760.07 0.92 -IBP Company Ltd. 508.92 0.62 -Grasim Industries Ltd. 477.19 0.58 -Gujarat Ambuja Cement Ltd 440.69 0.54 -Glaxosmithkline Pharmaceuticals Ltd 427.92 0.52 -National Thermal Power Corporation Ltd. # 421.51 0.51 -Hero Honda Motors Ltd. 389.48 0.47IPCA Laboratories Ltd 387.13 0.47 -Others 5,442.64 6.61

11,142.06 13.53


Corporate Debt **Hindalco Industries Ltd** 2,734.21 3.32 AAACitifinancial Consumer Finance India Ltd ** 1,966.11 2.39 AAAL & T Holdings Ltd.** 1,521.89 1.85 AAA(SO)Others 11,103.50 13.49

17,325.72 21.05Securitised Debt **Loan Sec Trust Sr XVI NTPC (ICICI Bank) 2,078.34 2.52 AAA(SO)MART 2003 II A2 (UTI Bank) 1,899.71 2.31 AAA(SO)MART 2004-SERIES III(CLASS A2)(04DEC06) 1,622.96 1.97 AAA(SO)Others 5,601.02 6.80

17,106.43 20.78PSU/PFI Bonds/BanksRural Electrification Corporation Ltd ** 5,594.18 6.80 AAAIndustrial Development Bank of India ** 4,042.51 4.91 AA+Housing & Urban DevelopmentCorporation of India Ltd.** 2,702.99 3.28 Pr1+Others 12,339.68 14.99

25,771.20 31.30Government BondsGovt Bond 9.39% 2011 2,268.00 2.75 SovereignGovt Bond 7.38% 2015 2,068.00 2.51 SovereignGovt Bond 10.95% 2011 1,660.28 2.02 Sovereign

5,996.28 7.28

Net Assets 82,324.25 100.00


Birla MIP#

****


An open- ended fund. Monthly income is not assured and is subject to availability of distributable surplus

PLAN NAV(Rs./UNIT)

PLAN A 10.7686PLAN B 15.6570 PLAN C 15.6570

13


CNBC-TV 18-BNP ParibasAwards 2004^

Best performing open-endedMonthly Income Plan Fund (three year)


Fund Managers' Speak - Birla MIP

K Ramanathan & Nishid Shah

! Average maturity of Debt component around 1.88 years in the fixed income portion. Maintained low average maturity with low exposure to G-Secs during these volatile times.! Increased investments in good current yield top quality structured

papers to improve portfolio YTM of Debt portion.! Equity exposure increased to around 13.5% in diversified portfolio

of large and mid-cap stocks.^ for methodology please refer page 25

# for methodology please refer page 25


**Represents thinly traded/ non traded securities and illiquid securities

Total Percentage of thinly/non traded securities 73.13%

@ - formely known as Tata Telecom Ltd.

# - indicates awaiting lisitng

N O V E M B E R 2 0 0 4

Corporate Debt 21.05


PSU/FI Bonds/Banks 31.30

Government Securities 7.28

Equity Investment 13.53




Rating profile (%)

AAA 61.16

AA \AA+ 10.49

Sovereign 7.28

Unrated 2.43

Equity 13.53


Maturity Profile (%)Less than 6 months 11.00

6 mths to 1 year 21.79

1 to 3 years 36.13

3 to 5 years 4.88

Above 5 years 7.57

Equity Investment 13.53


Birla MIP ll


Fund Managers' Speak - Birla MIP II

K Ramanathan & Nishid ShahSAVINGS 5 PLAN

! Average maturity of Debt component low at around 0.87 years predominantly consisting of 2005/2006 corporate bonds and securitized papers.

! Marginal Gilt exposure currently.

! Cash levels around 17%. Continuing to maintain low average maturity and look at trading in G-Secs to optimize returns.

! Equity exposure around 5% in a diversified portfolio of large and mid-cap stocks.

PLAN NAV(Rs./UNIT)

- Savings 5 PlanAn open- ended fund. Monthly income is not assured and is subject to availability of distributable surplus

Savings 5 Plan

Plan A - Monthly Dividend, Plan B - Growth, Plan C - Monthly Payment

*Represents thinly traded/ non traded securities and illiquid securities

Total Percentage of thinly/non traded securities is 76.88% # - indicates awaiting listing

PLAN A 10.1246PLAN B 10.1246 PLAN C 10.1246

Savings 5 Plan



14

(as on October 29, 2004)Debt Instruments

Top 10 Equity & Equity related

Listed/ Awaiting listing on stock exchange


National Thermal Power Corporation Ltd. # 21.08 0.68

LIC Housing Finance Ltd. 20.62 0.66


Gujarat Ambuja Cements Ltd 11.97 0.39


Chennai Petroleum Corporation Ltd. 10.42 0.34

Oriental Bank of Commerce 10.28 0.33

Kochi Refineries Ltd 10.28 0.33

Punjab National Bank 7.84 0.25

Others 16.61 0.53

162.29 5.22


Corporate Debt *

Reliance Industries Ltd 317.73 10.23 AAA

317.73 10.23

Securtised Debt *

Indian Retail ABS Trust Ser XIII A3 294.63 9.48 MAAA(SO)

NS Retail 2004 Series I (HDFC bank) 264.58 8.51 MAAA(SO)

559.22 18.00

PSU/PFI Bonds/Banks *

Indian Railway Finance Corporation Ltd 317.26 10.21 AAA

Nuclear Power Corporation of India Ltd. 317.01 10.20 AAA

State Bank of India 310.20 9.98 AAA

Others 944.46 30.40

1,511.64 48.65

Treasury bills

Treasury bills 30.75 0.99 Sovereign

30.75 0.99

Net Asset as on September 30 2004 3,107.28 100.00


N O V E M B E R 2 0 0 4





Equity 5.22



Rating profile (%)

Maturity Profile (%)

AAA 76.87

AA 0.00

Sovereign 0.99

Equity 5.22


Less than 6 months 11.18


1 to 3 years 40.31

3 to 5 years 0.24

Above 5 years 0.00

Equity Invesment 5.22


Birla MIP llAn open- ended fund. Monthly income is not assured and is subject to availability of distributable surplus


PLAN NAV(Rs./UNIT)

Wealth 25 Plan Plan A - Monthly Dividend, Plan B - Growth, Plan C - Monthly Payment

- Wealth 25 Plan

PLAN A 10.2827 PLAN B 10.2827 PLAN C 10.2827

Wealth 25 Plan

Fund Managers' Speak - Birla MIP II

K Ramanathan & Nishid Shah

WEALTH 25 PLAN

! Average maturity of Debt component low at around 1.27 years predominantly consisting of 2005/2006 corporate bonds and securitized papers.

! No Gilt exposure currently.

! Cash levels around 10%. Continuing to maintain low average maturity and look at trading in G-Secs to optimize returns.

! Equity exposure around 21% in a diversified portfolio of large and mid-cap stocks.

**Represents thinly traded/ non traded securities.Total Percentage of thinly/non traded securities is 54.89%



15

(as on October 29, 2004)Debt Instruments

Top 10 Equity & Equity relatedListed/ Awaiting listing on stock exchangeInfosys Technologies Ltd. 280.24 2.11Tata Consultancy Services Ltd. 259.28 1.95Bharti Tele-Ventures Ltd. 209.05 1.57Voltas Ltd. 141.78 1.07Gujarat Ambuja Cement Ltd. 131.82 0.99Grasim Industries Ltd. 130.10 0.98Glaxosmithkline Pharmaceuticals Ltd. 117.85 0.89LIC Housing Finance Ltd. 114.10 0.86Bharat Heavy Electricals Ltd. 104.37 0.79Chennai Petroleum Corporation Ltd. 101.40 0.76Others 1,153.60 8.68

2,743.59 20.65Cash & Current Assets 1,279.28 9.63

Corporate DebtSterlite Opportunities & Ventures Ltd.** 990.68 7.46 AAA(SO)Hindalco Industries Ltd.** 877.38 6.60 AAA

1,868.06 14.06Floating Rate InstrumentsNM + 170 Bps Indian Retail ABS Trust SerXIII A3** 993.14 7.47 MAAA

993.14 7.47Securitised DebtNS Retail 2004 Series I (HDFC bank) - 20-NOV-2005** 1,763.88 13.27 MAAAIndian Retail Abs Trust Series XIII A2 (24-Jan-2008)** 982.12 7.39 MAAA

2,746.00 20.67PSU/PFI Bonds/BanksState Bank of India** 1,137.40 8.56 AAAIndian Railways Finance Corporation Ltd.** 995.13 7.49 AAAICICI Bank Ltd.** 547.20 4.12 AAA

2,679.73 20.17Money Market InstrumentsExport Import Bank of India. 977.61 7.36 P1+

977.61 7.36

Net Asset 13,287.40 100.00


N O V E M B E R 2 0 0 4




Floating Rate Instruments 7.47


Equity Investment & Equity Related 20.65



Rating profile (%)


AAA 69.72

Equity & Equity related 20.65




1 to 3 years 41.24

3 to 5 years 0.41

Equity Investment & Equity Related 20.65


Birla Asset Allocation Fund

Fund Managers' Speak - Birla Asset Allocation Fund

Aggressive Deven Sangoi & Satyabrata Mohanty! Allocation to Equity decreased to 81% and biased towards large-cap

Funds.! Higher allocation to Birla Advantage Fund has helped in performance.! In Debt portfolio, increased allocation to floating rate schemes to reduce

interest rate risk of portfolio.

Moderate Deven Sangoi & Satyabrata Mohanty! Allocation to Debt Funds increased to around 38% mainly in floating rate

schemes. Shift to floating rate schemes helped in reducing interest rate risk.


An open-ended 'Fund of Funds' Scheme


Aggressive: Plan A - Dividend; Plan B - Growth Moderate: Plan A - Dividend; Plan B - Growth Conservative: Plan A - Dividend; Plan B - Growth Dynamic Debt: Plan A - Dividend; Plan B - Growth


PLAN NAV(Rs./UNIT)

Aggressive: PLAN A 10.4263 PLAN B 10.4263Moderate: PLAN A 10.3804 PLAN B 10.3804 Conservative: PLAN A 10.4292 PLAN B 10.4292 Dynamic Debt: PLAN A 10.2874 PLAN B 10.2874

! Equity portfolio biased towards large-cap Funds as this category expected to outperform in medium term.

Conservative Satyabrata Mohanty & Deven Sangoi! In Equity portfolio, the Fund invested mainly in large-cap Funds (Birla

Advantage Fund). Belief that the current strategy will improve long-term performance.! In Debt portfolio, increased allocation to floating rate schemes to reduce

interest rate risk of the portfolio.

Dynamic K. Ramanathan! Increased average maturity of the Fund to around 4.56 years.! Looking at active duration management to optimize returns.

Aggressive PlanMutual Fund UnitsBirla India Opportunities Fund 404.50 30.17Birla Advantage Fund 334.03 24.92Birla Index Fund 208.24 15.53Birla Midcap Fund 142.33 10.62Birla Floating Rate Short Term - Growth 123.65 9.22Birla Floating Rate Fund Long Term Plan 57.00 4.25Birla Gilt Plus Regular Plan 38.89 2.90Birla Bond Plus 15.60 1.16Birla Cash Plus Institutional Growth 1.23 0.09

98.87Cash & Current Assets 15.18 1.13

Moderate PlanMutual Fund UnitsBirla India Opportunities Fund 250.55 26.62Birla Floating Rate Short Term - Growth 238.51 25.34Birla Advantage Fund 173.58 18.44Birla Cash Plus Institutional Growth 114.52 12.17Birla Index Fund 94.66 10.06Birla Midcap Fund 32.62 3.47

96.11


Conservative PlanMutual Fund UnitsBirla Cash Plus Institutional Growth 286.95 25.92Birla Floating Rate Short Term - Growth 197.84 17.87Birla Floating Rate Fund Long Term Plan 174.49 15.76Birla Advantage Fund 148.75 13.44Birla India Opportunities Fund 102.67 9.27Birla MNC Plan 80.00 7.23

89.50


Dynamic Debt PlanMutual Fund UnitsBirla Gilt Plus Regular Plan 1,120.15 44.54Birla Gilt Plus PF Plan 747.42 29.72Birla Cash Plus 514.45 20.45

2,382.03 94.71


Net Assets 1,340.66 100.00

Net Assets 941.09 100.00

Net Assets 1,106.97 100.00

Net Assets 2,515.17 100.00

16



N O V E M B E R 2 0 0 4







Aggressive

Moderate

Conservative

Dynamic Debt

Equity 81.25

Debt 17.63


Equity 58.59

Debt 37.52

Net Current Asset 3.89

Equity 29.94

Debt 59.56


Birla Income Plus


An open-ended diversified income fund

Fund Manager's Speak - Birla Income Plus

K Ramnathan! Reduced average maturity of the Fund to around 3.15

years. Also reduced exposure to G-Secs to around 20%.

! Increased cash levels to around 13%.

! Continuing to actively manage duration for optimizing returns.

Plan A - Dividend, Plan B - Growth, Plan C - Institutional Plan-Dividend, Plan D - Institutional Plan-Growth

CRISIL~CPR 2 Open End Debt Scheme^^ Plan A 10.0417

Plan B 27.3459 Plan C 25.2222 Plan D 27.6940

PLAN NAV(Rs./UNIT)

@ for methodology please refer page 25^^ for methodology please refer page 25

@ICRA Online Awards 2004Ranked MFR1 in open-ended debt schemes - long term (one year)




**Represents thinly traded/ non traded securities and illiquid securities Total Percentage of thinly/ non traded securities is 58.16%@ - formely known as Tata Telecom Ltd.


17



N O V E M B E R 2 0 0 4

Debt Instruments

Others


Corporate Debt

Reliance Industries Ltd.** 5,391.32 8.81 AAA

Tata Sons Ltd** 4,479.64 7.32 AAA

Hindalco Industries Ltd.** 2,929.81 4.79 AAA

995.69 1.63

13,796.46 22.55

Securitised Debt

Loan Sec Trust SrXII NTPC (ICICI)** 1,181.76 1.93 AAA(SO)

Mumbai Auto Rec Tr 2003 SR I UTI SCB A2** 524.01 0.86 AAA(SO)

2004 Loan Sale Trust Sr I (IL&FS)** 504.38 0.82 A1+(SO)

Others 994.10 1.62

3,204.25 5.24

PSU/PFI Bonds/Banks

State Bank of India.** 4,806.75 7.86 AAA

Citibank N. A.** 3,865.68 6.32 AAA

LIC Housing Finance Ltd.** 2,548.70 4.17 AAA

Others 7,360.70 12.03

18,581.83 30.37

Government Bonds

Govt Bond 7.38% 2015 6,204.00 10.14 Sovereign



Others 161.93 0.26

12,032.78 19.67

Supra National Bonds

Asian Development Bank 5.40% 2014 433.71 0.71 AAA

433.71 0.71

Mutual Fund Units

Birla Bond Index Fund 2,603.85 4.26 AAA(F)

2,603.85 4.26

Money Market Instruments

Export -Import Bank of India 977.61 1.60 P1+

Kotak Mahindra Bank 973.18 1.59 P1+

Avaya GlobalConnect Ltd @ 499.74 0.82 P1+

2,450.53 4.01

Net Asset 61,185.29 100.00





Supra National Bonds 0.71





Rating profile (%)




1 to 3 years 42.74

3 to 5 years 11.92

Above 5 years 20.37


AAA 64.61

AA+/AA 2.52

Sovereign 19.67


Birla Bond Plus


An open-ended short term income fund

Plan A - Institutional Dividend, Plan B - Retail Growth Plan C - Institutional Growth, Plan D - Retail Dividend

CRISIL~CPR 2 Open End Debt

Short Term Scheme^^Plan A 10.3749Plan B 12.0070 Plan C 12.0533 Plan D 11.1170

PLAN NAV(Rs./UNIT)

* for methodology please refer page 25^^ for methodology please refer page 25

(Past performance is no guarantee of future results)

Debt Instruments


Corporate Debt

L & T Holdings Ltd.** 1,010.43 6.05 AAA(SO)

Mahindra & Mahindra Financial Services Ltd.** 1,005.71 6.02 AA+

Reliance Industries Ltd. ** 525.98 3.15 AAA

Others 852.93 5.11

3,395.05 20.32

Securitised Debt

Loan Securitisation Trust XII Sr NTPC ICICI.** 1,575.68 9.43 AAA(SO)

VE Trust 4 Sr A1 MMFSL (UTI Bank).** 869.57 5.20 AAA(SO)

2004 Loan Sale Trust Sr I (IL&FS)** 504.38 3.02 A1+(SO)

Others 417.40 2.50

3,367.04 20.15

PSU/PFI Bonds/Banks

Industrial Development Bank of India.** 2,313.68 13.85 AA+

State Bank of India. ** 1,068.17 6.39 AAA

Power Finance Corporation Ltd.** 1,062.88 6.36 AAA

Others 2,766.27 16.56

7,211.00 43.16

Net Asset 16,707.39 100.00


**Represents thinly traded/ non traded securities and illiquid securitiesTotal Percentage of thinly/non traded securities is 83.63%

Fund Manager's Speak - Birla Bond Plus

! Average maturity of the Fund around 1.04 years. Portfolio predominantly consisting of corporate bonds of 1-1.5 year maturity.! Focus has been on reducing volatility and deliver superior

risk adjusted return to investors.! Continuing to look at opportunistic trading in short-end G-

secs to improve returns but in a controlled manner.! Maintaining portfolio liquidity through investing in near

term assets.

Navneet Munot


CRISIL Best Fund Awards 2003Birla Bond Plus - Retail

Best Performing Open-endIncome-Short Term Fund


18



N O V E M B E R 2 0 0 4


Rating profile (%)






AAA 53.49

P1+ 3.02

AA+/AA 27.12



3 mths to 6 months 2.40

6 mths to 12 months 23.07

Above 1 year 51.27


Did you know that you can opt for confirmations of your transactions / account statements over e-mail?

Birla Cash Plus#

****An open-ended high liquidity fund investing in short term debt and money market instruments

Fund Manager's Speak - Birla Cash Plus

Navneet Munot

! Average maturity around 111 days. Short-term yields hardened in the recent past due to tightening of liquidity. Hence incrementally short term papers available at attractive levels.

! Continuing to look at yield pick up by investing in top quality unrated/AA/AA+ short term papers to improve portfolio yield. Ensuring at least 75% of the portfolio invested in AAA/P1+/call money/repo at any point in time.

Rating:"mfAAA" by ICRA*

Plan A 10.8022Plan B 17.4971 Plan C 17.5767 Plan D 16.3692 Plan E 10.0025 Plan F 10.0189 Plan G 10.2741Plan H 10.0237 Plan I 10.0423 Plan J 10.8082 Plan K 10.8160

PLAN NAV(Rs./UNIT)


* for methodology please refer page 25


**Represents thinly traded/ non traded securities and illiquid securities Total Percentage of thinly/non traded securities is 22.93%

Plan A - Institutional Dividend; Plan B - Retail Growth; Plan C - Institutional Growth; Plan D - Retail Dividend; Plan E - Institutional Monthly Dividend Plan; Plan F - Institutional Premium Plan - Dividend; Plan G - Institutional Premium Plan - Growth; Plan H - Institutional Premium Plan - Weekly Dividend; Plan I - Institutional Premium Plan - Fortnightly Dividend; Plan J - Institutional Plan - Weekly Dividend; Plan K - Institutional Plan - Fortnightly Dividend

19



Debt Instruments

Treasury Bills 2,198.56 0.60


Corporate Debt**Bajaj Hindustan Ltd. 5,500.00 1.50 UNRATEDUnited Phosphorus Ltd 5,000.00 1.36 UNRATEDBallarpur Industries Ltd. 2,500.00 0.68 UNRATEDOthers 13,313.29 3.64

26,313.29 7.18Money Market InstrumentsKotak Mahindra Bank Ltd. 3,388.90 0.92 P1+Industrial Development Bank of India 2,387.67 0.65 P1+Gruh Finance Ltd 1,693.77 0.46 P1+Others 8,562.58 2.34

16,032.92 4.37PSU/PFI Bonds/Banks**Housing Development Finance Cor. Ltd 4,501.23 1.23 AAAJawaharlal Nehru Port Trust 3,803.38 1.04 AAAInfrastructure Leasing & Fin. Ser. Ltd. 2,500.00 0.68 UNRATEDOthers 2,514.52 0.69

13,319.13 3.63Floating Rate InstrumentsIndian RMBS Trust SR1 A3 20 Nov 04 (ICICI) 15,097.71 4.12 AAA(SO)Indian Retail ABS Series. XV A2- (ICICI) 14,487.11 3.95 A1+(SO)Indian RMBS Trust SR1 A4 20Dec04 (ICICI) 14,110.67 3.85 AAA(SO)Others 41,555.32 11.34

85,250.82 23.26Securitised Debt**Indian RMBS Trust Ser. II (A1)- 20 March 05 11,891.25 3.24 LAAA(SO)Retail Trust Sept. 2004 Sr-A3 (Citi) 4,910.10 1.34 AAA(SO)Corporate Loan Ser II Trust -DCB-22 Mar 05 4,800.65 1.31 P1+(SO)Others 22,821.33 6.23

44,423.34 12.12

Net Asset 366,508.21 100.00


Did you know that you can invest in BCP even on Saturdays through a Direct Debit facility via select Banks*?

* Conditions apply.

The grading has been assigned by ICRA and indicates highest quality. The investment quality is similar to that of fixed income obligations of highest safety and with maturity corresponding upto 1 year. This grading should however, not be construed as an indication of the performance of the Mutual Fund scheme or of volatility in its returns.

N O V E M B E R 2 0 0 4


Rating profile (%)

AAA/AAA(So)/MAAA 22.40

AA/AA+/AA+(So) 2.00

P1+/P1+(So)/A1+/A+1(So)/

PR1+/F1+/PR1+ 19.02

Sovereign(TB) 0.60

Unrated 7.15



Corporate Debt 7.18




Treasury Bills 0.60


Birla Gilt Plus


An open-ended government securities scheme

Fund Manager's Speak - Birla Gilt Plus

Navneet Munot! Increased average maturity of Regular Plan to around 6.14

years and of PF plan to around 5.93 years. Increased positions at the medium end in both portfolios.

! Focus on off-the-run papers, which trade at a spread over on-the-run securities. Focus more on mid-segment of the curve.

! Continuing to look at trading opportunities to enhance returns.

Liquid PlanQuarterly Dividend 10.5312Growth 15.8726 Annual Dividend 10.5693

PF PlanQuarterly Dividend 10.6281Growth 18.3549 Annual Dividend 18.3576

Regular PlanQuarterly Dividend 11.0412Growth 20.2880 Annual Dividend 20.3171

PLAN NAV(Rs./UNIT)



Liquid Plan *****#: Quarterly Dividend, Growth & Annual DividendPF Plan: Quarterly Dividend, Growth & Annual DividendRegular Plan: Quarterly Dividend, Growth & Annual Dividend

# for methodology please refer page 25^^ for methodology please refer page 25^ for methodology please refer page 25@ for methodology please refer page 25

@ICRA Online Award 2004Ranked MFR I : Long Term - 1 Yr.

Short Term - 1 & 3 Yrs.


CNBC-TV 18-BNP Paribas Awards 2004^ BGP (Regular) Best performing Open-

ended Gilt Fund (3 Years)


20


LIQUID PLANGovernment SecuritiesGOI Bond 11.25% 2005 103.32 5.16 Sovereign

103.32 5.16


PF PLANGovernment SecuritiesGovt Bond 9.39% 2011 9,072.00 45.15 SovereignGovt Bond 7.40% 2012 3,613.75 17.98 SovereignGovt Bond 7.38% 2015 2,378.20 11.83 SovereignGovt Bond 7.55% 2010 1,042.00 5.19 SovereignGovt Bond 10.71%2016 1.25 0.01 Sovereign

16,107.20 80.16


REGULAR PLANGovernment SecuritiesGovt Bond 9.39% 2011 5,783.40 43.88 SovereignGovt Bond 7.38% 2015 2,585.00 19.61 SovereignGovt Bond 12.29 2010 1,239.53 9.41 SovereignGovt Bond 7.40% 2012 1,032.50 7.83 Sovereign

10,640.43 80.74


Net Assets 2,001.78 100.00

Net Assets 20,094.94 100.00

Net Assets 13,178.74 100.00


N O V E M B E R 2 0 0 4




Liquid Plan


Government Bonds 80.16





PF Plan

Regular Plan

Birla Bond Index Fund


An open-ended diversified income fund tracking the CRISIL Composite Bond Fund Index


Debt Instruments


Corporate Debt

Hindalco Industries Ltd.** 197.39 5.84 AAA

Reliance Industries Ltd.** 197.05 5.83 AAA

394.44 11.66

PSU/PFI Bonds/Banks

State Bank of India** 570.52 16.87 AAA

Bank of Baroda.** 219.91 6.50 AAA

Industrial Development Bank of India ** 212.92 6.30 Sovereign

1,003.34 29.67

Government Bonds




Others 104.34 3.09

624.23 18.46

Net Asset 3,381.57 100.00

**Represents thinly traded/ non traded securities and illiquid securities

Total Percentage of thinly/non traded securities is 41.34%


Plan A - Dividend, Plan B - Growth Rating:

"AAA(F)" - CrisilPlan A 9.9621

Plan B 10.4143

PLAN NAV(Rs./UNIT)

21


Satyabrata Mohanty

! Average maturity of the Fund around 2.93 years.! Asset allocation and portfolio in line with the CRISIL

Composite Bond Index.

Fund Manager's Speak - Birla Bond Index Fund


N O V E M B E R 2 0 0 4


Rating profile (%)





AAA 35.04

Sovereign 24.76


Did you know that you can use Birla Gift Certificates to gift Mutual Fund units to anyone? These Certificates are readily available in denominations of Rs. 500, Rs. 1,000, Rs. 5,000, Rs. 10,000 Rs. 50,000 and Rs. 1 lakh.

Satyabrata Mohanty

! Average maturity of Short Term Plan around 154 days and of Long Term Plan around 215 days.! Good investment option in times of interest rate volatility.! Endeavor to reduce interest rate risk to the maximum

extent possible.

Fund Manager's Speak - Birla Floating Rate Fund

Birla Floating Rate Fund

*As on October 29, 2004

An open-ended income scheme investing primarily in floating rate debt instruments


Plans: Long Term Plan : Dividend & Growth Short Term Plan : Dividend & Growth


PLAN NAV(Rs./UNIT)

Dividend Growth

Long Term* 10.4072 10.7187#Short Term 10.3648 10.6828


**Represents thinly traded/ non traded securities and illiquid securitiesTotal Percentage of thinly/non traded securities is 60.98%

22


**Represents thinly traded/ non traded securities and illiquid securities Total Percentage of thinly/non traded securities is 75.48%


N O V E M B E R 2 0 0 4






Long Term Plan


Securitised Debts 1.05



Treasury Bills 1.36


Short Term Plan

Did you know that Birla Floating Rate Fund Short Term Plan offers T+0* redemption facility?

*Conditions apply

INVESTMENT PORTFOLIO - October 31, 2004(as on October 31, 2004)

BIRLA FLOATING RATE FUND - LONG TERM PLANDebt Instruments


Floating Rate Instruments**Ranbaxy Holding Company 2,500.00 9.50 AA(SO)Industrial Development Bank of India 2,050.87 7.79 AA+Housing Development Finance Corporation Ltd. 2,006.29 7.62 AAAOthers 11,933.69 45.34

18,490.85 70.25PSU/FI Bonds/Banks**Jawaharlal Nehru Port Trust 200.16 0.76 P1+Canbank Factors Ltd. 200.00 0.76 P1+

400.16 1.52Securitised DebtCollateralised DebtTrust Srs 2 ClassA (ICICI) ** 975.02 3.70 P1+(SO)

975.02 3.70

Net Asset 26,320.49 100.00

BIRLA FLOATING RATE FUND - SHORT TERM PLAN


Debt InstrumentsSecuritised debt instruments**Corporate Loan Sec Sr II Trust 2004 (Devt Credit Bank) 762.01 1.05 P1+(SO)

762.01 1.05Floating Rate Instruments**Industrial Development Bank Of India 6,250.74 8.62 AA+Housing Development Finance Corporation Ltd. 5,018.50 6.92 LAAANM+55bps Indian Retail ABS Series XV A2 (ICICI) 4,995.56 6.89 A1+(SO)Others 26,403.10 36.40

42,667.90 58.83PSU/FI Bonds/Banks **Canbank Factors Ltd. 800.00 1.10 P1+

800.00 1.10Treasury BillsTreasury Bills 987.34 1.36 Sovereign

987.34 1.36

Net Asset 72,527.56 100.00

#As on October 31, 2004

Birla Dynamic Bond FundAn open ended income fund

Fund Manager's Speak - Birla Dynamic Bond Fund

! Average maturity of the Fund around 306 days.

! Duration of the Fund will be managed actively depending on view of the market.

Plan A 10.0000Plan B 10.0425 Plan C 10.0425 Plan D 10.0425 Plan E 10.0875Plan F 10.0455 Plan G 10.0455Plan H 10.0455 Plan I 10.0396 Plan J 10.0396

PLAN NAV(Rs./UNIT)



**Represents thinly traded/ non traded securities and illiquid securities Total Percentage of thinly/non traded securities is

Plan A - Institutional Annual Dividend; Plan B - Institutional Growth; Plan C - Institutional Monthly

Dividend Plan; Plan D - Institutional Quarterly Dividend Plan; Plan E - Institutional Premium Plan -

Annual Dividend; Plan F - Institutional Premium Plan - Growth; Plan G - Institutional Premium Plan -

Monthly Dividend; Plan H - Institutional Premium Plan - Quarterly Dividend; Plan I - Retail Growth;

Plan J - Retail Quarterly Dividend;

23



Government Bonds


1,034.00 7.21

Floating Rate Instruments

Century Textiles and Industries Ltd.** 2,000.00 13.94 F1+

Global Trade Finance Pvt Ltd.** 2,000.00 13.94 P1+

4,000.00 27.89

Treasury Bills

91 Days Treasury Bill 28 January 2005 2,468.35 17.21 Sovereign(tb)

91 Days Treasury Bill 07 January 2005 990.87 6.91 Sovereign(tb)

3,459.22 24.12


Net Asset 14,343.20 100.00


Did you know that Birla Mutual Fund is the first and the only AMC to be certified as an ISO 9001:2000 company?

N O V E M B E R 2 0 0 4




Treasury Bills 24.12


Rating profile (%)

Sovereign 7.21

P1+ 27.89

Treasury Bills 24.12


Maturity profile (%)


Above 1 year 7.21


India Advantage Fund Ltd.

Fund Manager's Speak - India Advantage Fund

Nishid Shah

! Exposure to auto industry reduced owing to concerns on high crude oil prices.

! Remained concentrated on MNC pharma, agro chemicals, banks, cement, telecom and technology.

! Portfolio remains attractive in terms of valuation and earnings growth.


India dedicated offshore investment opportunity (For Non-Resident Indians and eligible foreign nationals)


TOP 20 EQUITY INVESTMENTS:

CMC Ltd. Computer Hardware 4,206,665 7.29

Bharti Televentures Ltd. Integrated Telecommunication Services 3,916,240 6.78

United Phosphorus Ltd. Fertilizers & Agricultural Chemicals 3,629,968 6.29

Glaxo Smithkline Pharma Ltd. Pharmaceuticals 2,804,312 4.86

LIC Housing Finance Ltd. Consumer Finance 2,535,466 4.39

Infosys Technologies Ltd. IT Consulting & Services 2,463,255 4.27

Tata Consultancy Services Ltd IT Consulting & Services 2,127,048 3.68

Birla Corporation Limited Constuction Material 2,089,547 3.62

Gujarat Ambuja Cement Ltd. Construction Materials 1,830,558 3.17

Novartis Pharma Ltd. Pharmaceuticals 1,820,700 3.15

Monsanto India Ltd. Fertilizers & Agricultural Chemicals 1,771,687 3.07

Hero Honda Ltd. Motorcycle Manufacturers 1,740,665 3.02

State Bank Of India Banks 1,715,400 2.97

Pfizer India Ltd. Pharmaceuticals 1,713,644 2.97

Indian Hotels Co Ltd. Hotels 1,695,819 2.94

Chennai Petroleum Limited Oil & Gas Refining & Marketing 1,694,556 2.94

Oriental Bank Of Commerce Banks 1,628,726 2.82

Grasim Industries Ltd. Industrial Conglomerates 1,618,066 2.80

Union Bank Of India Banks 1,615,634 2.80

Punjab National Bank Banks 1,520,615 2.63

44,138,571 76.47

Other Equity Investments 12,288,524 21.29

Total Equity Holdings 56,427,094 97.75

DEBT INVESTMENTS :

Hindustan Lever Ltd. 6,576 0.01

CALL & CALL EQUIVALENTS :

Call Money 1,289,404 2.23

TOTAL 57,723,074 100.00

Investment via sub-fund, India Advantage (Offshore) Fund, are stated at market/fair value at the date of determination. Securities

listed on a recognised stock exchange are valued at the last quoted closing price on the principal exchange on which the security

istraded Non-traded securities are valued at amortised cost and/or fair value as determined in good faith by Birla Sun Life Asset

Management Company Limited, India, Conversion Rate: 1 USD=INR 45.4300

OTHER NET ASSETS (SUB FUND) (134,141)

OTHER NET ASSETS (MAIN FUND) (1,590)

NET ASSETS (IN USD) 57,587,343

NET ASSETS (IN INR) 2,616,192,992.49

NAV($/UNIT)

72.72

Equity Holdings Sector Market Value % of (US Dollars) Portfolio

Investment Performance (in %)

1 Year Returns are Absolute Returns. 2 Year, 3 Year, 5 Year and Since Inception Return are Compounded Annualised Growth Rates (CAGR) Returns. Gross returns for the period shown do not reflect sales charges. Past performance is not indicative of future results. Shares of the Fund are offered only pursuant to the Fund’s current offering document and this summary should not be construed as an offer to sell or for solicitation of an offer to buy or a recommendation for the securities of the Fund. BSE-Bombay Stock Exchange. S & P - Standard & Poor’s MSCI-Morgan Stanely Capital International.

1 year 2 Years 3 Years 5 Years Since Inception2003-2004 2002-2004 2001-2004 1999-2004 20-Aug-96

Compounded Annualized Returns

IAF 45.61 84.49 52.60 18.86 27.36

Sensex 15.60 38.62 23.78 4.99 6.76

MSCI 15.24 47.98 32.33 6.41 6.55

24


N O V E M B E R 2 0 0 4



Banks 13.48









Hotels 2.94



Others Equities 6.11

Corporate Debt 0.01


Bloomberg Ticker Code: INDADVC MP* For methodology refer page 25

S&P Fund Management Rating: 'A'*

Birla Sun Life AMC (Mauritius) Limited India Advantage Fundawarded 1st Place in the Standard & Poor's Five Years

Offshore Funds Equity India Sector out of 11 funds

2004 @@

2004

@@ for methodology please refer page 25

(Past performance is no guaranteeof future results.)

3rd consecutive award since 2002.

Methodology of Ranking

25

# Value Research Rankings

Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the weighted average monthly returns for the last 3 and 5-year periods. In the case of debt funds this rating is based on the weighted average weekly returns for the last 18 months and 3-year periods and in case of shor t-term debt funds - weekly returns for the last 18 months. These ratings do not take into consideration any entry or exit load.

Five-stars indicate that a fund is in the top 10 per cent of its category in terms of historical risk-adjusted returns. Four stars indicate that a fund is in the next 22.5 per cent of its category. The number of schemes in each category is mentioned along side the categories name.

The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds, Value Research does not guarantee the accuracy.

Ranking Entity

^ CNBC Award Methodology

The CNBC-TV 18-BNP Paribas Mutual Fund of the Year Awards 2004, rated by Moody's Investors Service, was assessed by first calculating the weekly active return per each eligible fund to reflect over or under performance against the average of the relative category, then calculating the mean active return of each eligible fund to measure consistency of performance over one year period and then adding a risk measure to the calculation to reward funds that have obtained the same mean active return with less volatility. The Fund with highest Performance consistency ratio (PCR) achieved the award. Only open-ended mutual fund schemes with minimum one year track record and a minimum asset size (as a percentage of total category size) have been considered for these awards. The rankings for these awards have been done on the past performance and are not to be used as indicators or forecasts of future performance of the funds ranked. These rankings are for the period ended December 31, 2003. Load has not been considered for the rankings. The number of funds considered in the Equity Tax Saving fund category were thirteen. The number of funds considered in the Monthly Income Plan category were nine. The number of funds considered in the Gilt fund category were twenty five. Ranking Entity: Moody's Investors Service.

@ ICRA Ranking Methodology

The schemes have been ranked on the basis of methodology developed jointly by ICRA Ltd. and ICRA Online Ltd. The eligibility criteria for ranking include NAV history of 1 and 3 years, full portfolio disclosure during the ranking period (monthly/quarterly), Fund Size: Greater than 5% of the category average AUM during the ranking period and presence of at least 5 schemes in the category for ranking. Only Growth Options of Open-Ended schemes considered. The Schemes have been classified based on investment style analyzed on the basis of the asset allocations across asset classes and sectors over the ranking period of 1 year and 3 year, rather than the stated objective. Schemes are ranked on the basis of comprehensive analysis of the portfolio by giving different weights to parameters like Risk Adjusted Return, Company Concentration, Sector Concentration, Liquidity, Fund Size, Average Maturity and Portfolio Turnover. Risk adjusted return has been calculated on the basis of “Investor Expectation Ratio (IE Ratio)” that is defined as the ratio of excess return and risk. The excess return is the average daily active return of the scheme calculated for the ranking period over the average peer group return. Downside deviation of the schemes' return from the expected return of the peer group calculated for the period covered, has been taken as the surrogate of risk. Here average peer group return has been taken as the proxy for the expected return. In the case of Index Schemes, the IE ratio has been replaced by Tracking Error. These rankings are for the period ending Dec 31, 2003. Loads have not been considered for these ranking. The no. of schemes that qualified for ranking in each category is given as follows: l Sectoral -Technology - 10 (1yr.) & 11 (3 yrs.) l Gilt Short Term - 9 (1yr.) & 6 (3yr.s) l Gilt Long Term - 20 (1yr.) l Equity Linked Saving Schemes - 14 (1yr.) l Debt - Long Term - 26 (1yr.)

The rankings assigned by ICRA / ICRA Online are based on an objective analysis of information obtained from the entities concerned and also from other reliable sources considered reliable by ICRA / ICRA Online. However, neither the accuracy nor the completeness or timeliness of the rankings is guaranteed.

*CRISIL Awards

Birla Bond Plus - Retail has won the “CRISIL Best Fund Awards 2003” in open end Income-Short Term category. There were 7 eligible funds for the award universe. The award is based on consistency of quar terly CRISIL CPR rankings released during the year ended June 03. The schemes appearing in all the rankings periods were considered for the award. The individual CPR parameter scores averaged for the two quarters and further multiplied by the parameter weight as per the CPR methodology to arrive at the final scores. Two schemes with the highest score were selected for the award. A detailed methodology of the CRISIL CPR is available at www.crisil.com.

^^CRISIL~CPR Ranking Details

BIRLA INCOME PLUS PLAN B

CRISIL has assigned a Composite Performance Rank of “CRISIL~CPR 2* Open End Debt Schemes, September 2004” to Birla Income Plus Plan B.

CRISIL~CPR 2 Open End Debt Scheme, October 2002 - September 2004

*CRISIL~CPR 2 The composite performance of Birla Income Plus Plan B is “Good” in the Open End Debt Category, and ranks within the top 30 % of the 21 schemes ranked in this category. The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the 2-year period ended September 30, 2004, Concentration, Asset Quality and Liquidity of the scheme. The methodology does not take into account the entry and exit loads levied by the scheme. The CRISIL CPR is no indication of the performance that can be expected from the scheme in future.

BIRLA BOND PLUS PLAN B

CRISIL has assigned a Composite Performance Rank of “CRISIL~CPR 2* Open End Debt Short Term Schemes, September 2004” to Birla Bond PlusPlan B

CRISIL~CPR 2 Open End Debt Short Term Scheme, October 2003 - September 2004

*CRISIL~CPR 2 The composite performance of Birla Bond Plus Plan B is “Good" performance in the Open End Debt Short Term Category, and ranks within the top 30% of the 16 schemes ranked in this category. The criteria used in computing the CRISIL Composite Performance Rank are Mean Return, Volatility, based on NAVs over the 1-year period ended September 30, 2004, Asset size, Average Maturity, Downside Risk Probability & Asset Quality of the scheme. The methodology does not take into account the entry and exit loads levied by the scheme. The CRISIL CPR is no indication of the performance that can be expected from the scheme in future.

BIRLA BALANCE - GROWTH

CRISIL has assigned a Composite Performance Rank of “CRISIL~CPR 2* Open End Balanced Schemes, September 2004” to Birla Balance Fund.

CRISIL~CPR 2 Open End Balanced Schemes, October 2002 - September 2004

*CRISIL~CPR 2 The composite performance of Birla Balance Fund is “Good” in the Open End Balanced Fund Category, and ranks within the top 30% of the 18 schemes ranked in this category. The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the 2-year period ended September 30, 2004, Concentration, Liquidity and Asset Quality of the scheme. The methodology does not take into account the entry and exit loads levied by the scheme. The CRISIL CPR is no indication of the performance that can be expected from the scheme in future.

Ranking Source: CRISIL FundServices, CRISIL Limited

Fund Management Ratings

A S&P Rating is its current opinion of a fund's adherence to consistent investment processes combined with the level of volatility adjusted returns. In S&P's opinion, funds which adhere to disciplined processes and exhibit strong management, are more likely, over the long run, to provide consistent, above average volatility adjusted returns, relative to the funds in the same sector. The rating is based on an evaluation of qualitative (management, investment process and organization) and quantitative (historic performance, portfolio construction and volatility) factors which contribute to long term performance. The rating does not address, the market, credit or counter party risk of a fund, nor a fund's suitability as a counter party or obligor.

Ratings Definition

Funds rated in the AAA to A categories demonstrate to S&P an ability to provide above average volatility, adjusted returns over long term period (relative to funds in the same sector) along with a strong ability to adhere to a consistent investment process. The differentiation in the rating categories is based on quantitative factors along with Standard & Poor's The McGraw-Hill Companies's assessment of the investment process and management.

AAA: A fund which demonstrates an extremely strong ability to adhere to consistent investment processes and provides above average volatility adjusters returns relative to funds with similar objectives.

AA: The fund demonstrates very high standards of quality in its sector based on its investment process and management's consistency of performance as compared to funds with similar objectives.

A: The fund demonstrates a high standard or quality in its sector based on its investment process arid management's consistency of performance as compared with funds with similar objectives

NR: Funds designated as NR (not rated) currently do not meet the requisite performance standards and / or the minimum qualitative criteria.

Equity Diversified (62), Equity Tax Planning (19), Hybrid Equity Oriented (25), Hybrid: Monthly Income (15), Debt: Medium-term (35), Gilt: Medium and Long-term (28), Gilt: Short-term (15), Debt: Ultra Short-term (38), Debt: Short-term (19) Hybrid: Debt-oriented (10). These Fund Ratings are as on October 31, 2004.

@@ STANDARD & POOR'S FUND AWARDS 2004 Methodology

Funds must have minimum assets under management of US$4m, as at end of June 2003. The Offshore fund universe for the purposes of these Awards excludes funds that are domiciled in Luxembourg or Ireland. Awards are calculated for 1 and 5 years. There must be a minimum of 10 funds in a sector to qualify for the calculation. For detailed methodology, kindly visit http://www.funds-sp.com

N O V E M B E R 2 0 0 4

LOAD STRUCTURE AT A GLANCEEQUITY FUNDS ENTRY LOAD EXIT LOAD

(i) In respect of each purchases / switch in of Units less than Rs. 5 crores in value, an Entry load of 2.25 % is applicable.

(ii) In respect of each purchases / switch in of Units, equal to or greater than Rs. 5 crores in value, No Entry load is applicable

Nil

Birla Index Fund

Birla Advantage Fund

Birla India Opportunities Fund(Formerly Birla IT Fund)

Birla Midcap Fund

Birla Dividend Yield Plus

Birla MNC Fund

Birla Balance

Birla Equity Plan (Formerly Birla Tax Plan)

NilNil

DEBT FUNDS ENTRY LOAD EXIT LOAD

Birla Income Plus

Retail Plan

Institutional Plan

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Birla Cash Plus

Birla MIP (An open-ended fund. Monthly income is not assured and is subject to the availability of distributable surplus.)

Birla Bond Plus

Birla Bond Index Fund

Birla Floating Rate Fund

Short Term Plan

Long Term Plan

Nil

Nil

Nil

Nil

Nil

Birla Gilt Plus

Plan A - Liquid Plan

Plan B - PF Plan

Plan C - Regular Plan

1.00% if exited within 365 days

Nil

In respect of each purchase / lateral shift in of Units, upto and including Rs. 10 lacs in value, an Exit Load of 0.60% is payable if Units are redeemed / lateral shifted out within 180 days. In respect of each purchase / lateral shift in of Units, greater than Rs. 10 lacs in value, no exit load is payable

In respect of each purchases / lateral shift in of Units, upto and including Rs. 10 lacs in value, an Exit Load of 0.60% is payable if Units are redeemed / lateral shifted out within 90 days from the date of allotment. In respect of each purchase / lateral shift in of Units, greater than Rs. 10 lacs in value, no exit load is payable


Nil

Nil Nil

Nil

Nil

Birla MIP II (An open-ended fund. Monthly income is not assured and is subject to the availability of distributable surplus.)

Saving 5 Plan

Wealth 25 Plan

Please check the applicable load structure at the time of investing.

Disclaimer: Any information contained in this publication does not constitute and shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation or solicitation to do so for any securities of any entity, and further, Birla Sun Life AMC Ltd./ its subsidiaries / affiliates / sponsors / trustee or their officers, employees, personnel, directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of any information that may be displayed in this publication from time to time. Recipients of the information contained herein should exercise due care and caution and read the offer documents (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained herein.Editorial opinions expressed in the 'Connect' are not necessarily those of Birla Sun Life AMC Ltd. or any of their officers, employees, personnel, directors and Birla Sun Life AMC Ltd. and its officers, employees, personnel, directors do not accept responsibility for the editorial content. Birla Sun Life AMC Ltd. or any of its officers, employees, personnel, directors make no representation as to the accuracy, completeness or reliability of the editorial content and hereby disclaim any liability with regard to the same.

Aggressive Plan

Moderate Plan

Conservative Plan

Dynamic Debt Plan

1.50%

1.00%

0.50%

Nil

Nil

Nil

Nil

Nil

FUND OF FUNDS ENTRY LOAD EXIT LOAD

Birla Asset Allocation Fund

Nil



Birla Dynamic Bond Fund

Retail

Institutional

Institutional Premium

Nil

NilNil


Nil

NilNil

$Performance

27

at a glanceDEBT SCHEME

Period 1 Year 2 Years 3 Years 5 Years Since Inception

Birla MIP (Growth) 6.22 11.06 11.97 -- 12.04Crisil MIP Blended Index 2.18 9.78 -- -- --Inception - November 20,2000

Birla Income Plus (Growth) -1.35 5.46 8.56 10.42 11.79Crisil Composite Bond Fund Index -0.83 4.94 -- -- --Inception - October 23,1995

Birla Gilt Plus - Liq. (Growth) 3.71 6.54 6.89 -- 9.58I-Sec Si-Bex 3.53 5.73 -- -- --

Birla Gilt Plus - PF (Growth) -3.50 8.17 10.62 -- 12.77Birla Gilt Plus - Reg (Growth) -2.80 8.67 12.69 -- 15.03I-Sec Li-Bex -5.60 7.33 -- -- –Inception - October 12, 1999

Period 1 Month 2 Months 3 Months 1 Year 3 Years 5 Years Since Inception

Birla Cash Plus - Retail (Growth) 0.37 0.73 1.11 4.28 5.7 7.02 7.87Crisil Liquid Fund Index 0.3 0.59 0.89 3.91 -- -- --Inception - June 16,1997

Birla Bond Plus - Retail (Growth) -0.02 0.51 0.87 3.94 -- -- 6.45CRISIL Short-Term Bond Fund Index -0.04 0.39 0.46 2.53 -- -- --Inception - November 26,2001

Birla Bond Index Fund (Growth) -0.8 -0.35 0.04 -1.35 -- -- 2.71Crisil Composite Bond Fund Index -0.67 -0.18 -0.33 -0.83 -- -- 2.54Inception - April 24,2003

Birla Floating Rate Fund LTP - Growth 0.46 0.9 1.25 4.8 -- -- 5.06STP - Growth 0.44 0.82 1.22 4.69 -- -- 4.79Crisil Liquid Fund Index 0.3 0.59 0.89 3.91 -- -- 3.99Inception - June 04, 2003

Birla MIP II - Saving 5 (Growth) 0.16 0.83 1.48 -- -- -- 1.25Crisil MIP Blended Index -0.47 0.98 0.8 2.18 -- -- -2.59Inception - May 01, 2004

Birla MIP II - Wealth 25 (Growth) 0.59 2.41 3.45 -- -- -- 2.83Crisil MIP Blended Index -0.47 0.98 0.8 2.18 -- -- -2.59Inception - May 01, 2004

Birla AAF - Conservative Plan (Growth) 0.61 2.66 4.41 -- -- -- 4.29Crisil MIP Blended Index -0.47 0.98 0.8 2.18 -- -- -1.18Inception - January 23,2004

Birla AAF - Dynamic Debt Plan (Growth) 0.45 0.88 1.51 -- -- -- 2.87Crisil Composite Bond Fund Index -0.67 -0.18 -0.33 -0.83 -- -- -1.63Inception - January 23,2004

EQUITY SCHEME

Period 1 Year 2 Years 3 Years 5 Years SinceInception/Takeover

Birla Advantage Fund (Growth) 26.4 52.95 35.52 10.12 20.91S&P Nifty 14.89 37.11 22.53 6.15 5.94BSE Sensex 15.64 38.74 23.83 4.99 5.25Inception - February 24, 1995

Birla Equity Plan 38.17 76.39 51.85 21.25 26.97S&P Nifty 14.89 37.11 22.53 6.15 11.28BSE Sensex 15.64 38.74 23.83 4.99 9.72Inception - February 16, 1999

Birla India Opportunities Fund (Growth)(formerly Birla IT Fund) 39.92 47.86 53.21 -- 0.49CNX500 23.36 47.41 34.18 9.07 5.58Takeover - December 27, 1999

Birla MNC Fund (Growth) 40.54 47.78 34.09 -- 8.96CNX MNC 3.85 15.94 5.6 -3.35Takeover - December 27, 1999

Birla Balance (Growth) 21.19 39.54 25.25 -- 9.24Balanced Fund Index 10.57 24.69 -- -- --Inception - October 12, 1999

Birla Index Fund (Growth) 18.45 38.22 -- -- 33.56S&P Nifty 14.89 37.11 -- -- 31.85Inception - September 17, 2002

Birla Mid Cap Fund (Growth) 51.62 59.72 -- -- 41.29CNX Midcap 49.16 72.92 53.35 17.63 67.69Inception - October 16, 2002

Birla Dividend Yield Plus (Growth) 42.23 -- -- -- 64.4CNX500 23.36 47.41 34.18 9.07 48.5Inception - February 10, 2003

Period 1 Month 2 Months 3 Months 1 Year Since Inception

Birla AAF - Aggressive Plan (Growth) 1.88 6.93 11.72 -- 4.26S&P Nifty 2.37 9.51 9.47 14.89 -3.28Inception - January 23,2004

Birla AAF - Moderate Plan (Growth) 1.46 5.36 9.47 -- 3.8Crisil Balanced Fund Index 0.11 4.47 4.18 10.57 -0.75Inception - January 23,2004

Returns calculated as on 31st October 2004.Absolute returns for period less than 1 year, CAGR for period 1year or more. $ All return figures are in percentage. Performance has been calculated on the basis of the Advertisement Code as prescribed under SEBI (Mutual Funds) Regulations, 1996. Past performance may or may not be sustained in future.

N O V E M B E R 2 0 0 4

WEBSITE: www.birlasunlife.com

TOLL FREE NO.: 1-600-22-7000

E-MAIL: [email protected]


TOLL FREE NO.: 1-600-22-7000



TOLL FREE NO.: 1-600-22-7000



TOLL FREE NO.: 1-600-22-7000



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TOLL FREE NO.: 1-600-22-7000



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TOLL FREE NO.: 1-600-22-7000



TOLL FREE NO.: 1-600-22-7000



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TOLL FREE NO.: 1-600-22-7000

INCOME FUNDS

• Birla Cash Plus

• Birla Floating Rate Fund

• Birla Income Plus

• Birla Dynamic Bond Fund

• Birla Gilt Plus

• Birla Fixed Maturity Plan

• Birla Bond Index Fund

• Birla Bond Plus

GROWTH FUNDS

• Birla Advantage Fund

• Birla Dividend Yield Plus

• Birla Midcap Fund

• Birla India Opportunities Fund

• Birla MNC Fund • Birla Index Fund

• Birla Equity Plan

FUND OF FUNDS

• Birla Asset Allocation Fund

OFFSHORE FUNDS

• India Advantage Fund

• Excel India Fund

HYBRID FUNDS

An open-ended fund. Monthly Income is not assured and is subject to availability of distributable surplus.

An open-ended fund. Monthly Income is not assured and is subject to availability of distributable surplus.

• Birla Balance

• Birla MIP

• Birla MIP II

Constitution: Birla Mutual Fund (BMF), has been set up as a trust under the Indian Trust Act, 1882. Sponsors: Sun Life (India) AMC Investments Inc. and Birla Global Finance Ltd. (liability restricted to seed corpus of Rs. 1 lac) Trustee: Birla Sun Life Trustee Co. Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. Risk Factors: Mutual Funds and securities investments are subject to usual risks associated with capital and money market instruments. There can be no assurance that the funds objectives will be achieved. As with any investment in securities, the NAV of the units issued under the schemes can go up or down depending on the factors and forces affecting the securities markets. Past performance of BMF does not guarantee the future performance of the schemes of BMF and does not form a basis of comparison with other investments. The names of schemes do not in any manner indicate either the quality of the schemes, their future prospects or returns. Scheme Objective: Birla Advantage Fund: An Open-ended Growth Scheme to achieve long-term growth of capital at relatively moderate levels of risk through a diversified research based investment approach. Birla Equity Plan: An Open-ended Equity Linked Savings Scheme to achieve long-term growth of capital along with income tax relief for investment. Birla India Opportunities Fund: An Open-ended Growth Scheme to achieve superior long-term growth of capital by investing in shares of companies that do one or more of the following: Leverage India's intellectual capital for providing services, research and creative inputs; Seek to use current and impending changes in patent laws / import tariffs / quotas to supply goods and services; Leverage India's lower labour costs for providing services and manufactured goods; Leverage India's large population of English speaking people for providing services. Birla MNC Fund: An Open-ended Growth Scheme to achieve long-term growth of capital at relatively moderate levels of risk by making investments in securities of multi-national companies through a research based investment approach. Birla Midcap Fund: An Open-ended Growth Scheme to achieve long-term growth of capital at controlled level of risk by primarily investing in Midcap stocks. Birla Index Fund: An Open-ended Index-Linked Scheme to generate returns commensurate with the performance of Nifty subject to tracking errors. Birla Dividend Yield Plus: An Open-ended Growth Scheme to provide capital growth and income by investing primarily in a well diversified portfolio of dividend paying companies that have a relatively high dividend yield. Balance: An Open-ended Balanced Scheme with an objective to balance income requirements with long-term growth of capital at relatively moderate levels of risks through a diversified research based investment approach. Birla Bond Index Fund: An Open-ended Income Scheme tracking the CRISIL Composite Bond Fund Index. Birla Income Plus: An Open-ended Income Scheme to generate consistent income through superior yields on its investments at moderate levels of risk through a diversified investment approach. Birla Gilt Plus: An Open-ended Government Securities Scheme to generate income and capital appreciation through investments exclusively in Government Securities. Birla MIP: An Open-ended Fund to generate regular income so as to make monthly distribution to unit holders with the secondary objective being growth of capital. Monthly Income is not assured and is subject to availability of distributable surplus. Birla MIP II: An Open-ended Fund to generate regular income so as to make monthly payment or distribution to unit holders with the secondary objective being growth of capital. Monthly Income is not assured and is subject to availability of distributable surplus. Birla Dynamic Bond Fund: An Open-ended Income Scheme to generate optimal returns with high liquidity through active management of the portfolio by investing in High Quality Debt and Money Market Instruments. Birla Floating Rate Fund: An Open-ended Income Scheme to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. Birla Bond Plus: An Open-ended Short Term Income Scheme to generate regular returns through investments in debt and money market securities. Cash Plus: An Open-ended Liquid Scheme to provide reasonable returns at a high level of safety and liquidity through judicious investments in high quality debt and money market instruments. Birla Asset Allocation Fund: An Open-ended Fund of Funds Scheme to provide income and capital appreciation along with diversification by investing in a basket of debt and equity Mutual Fund schemes in line with the risk profile of the customer. India Advantage Fund and Excel India Fund: Funds designed to seek long-term appreciation through investment primarily in equity related securities of companies in India that are run by efficient management, have a sustainable and robust business model and are available at reasonable valuations. Liquidity: The schemes offer NAVs, subscription and redemptions on all business days. For all schemes please check applicable load structure before investing. For details and scheme specific risk factors read offer documents and refer to your financial advisor before investing.

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OFFICIAL POINTS OF ACCEPTANCE OF APPLICATIONS: Birla Sun Life AMC Limited (Branches): Ahmedabad 640 3553 /48 Bangalore 2238 9991 /2 /3 Chennai 5204 5003 /2819 1681 Kolkata 2288 2592/ 2594 Mumbai (Andheri) 5692 8000, (Fort) 5637 9999 New Delhi 2335 8636 /23320831 Pune 401 1865/ 1866/ 1867 Secundrabad 531 1052/3580 /2772 1818 CAMS Locations: Agra 252 1812 Allahabad 260 1602 Amritsar 2211194 Belgaum 2425305 Bhilai 505 0568 Bhopal 528 5266 Bhubaneswar 253 4909/253 5395 Chandigarh 2706 651/2711 325 Coimbatore 252 5353 /252 0817 Dehradun 271 3233 Durgapur 254 8190 Guwahati 2607771 Hubli 2254568 / 2351533 Indore 2528609/252 9261 Jaipur 237 2492/236 5247/220 5918 Jalandhar 245 6336 Jamnagar 255 8467/3111909 Jamshedpur 310 5930 Jodhpur 309 2892/2628039 Kanpur 230 6668/230 6685 Kochi 238 0443 Lucknow 237309 Ludhiana 501 7502 /241 0279 Madurai 2622 682 Mangalore243 6567/525 2525 Manipal 257 3333 Moradabad 3092844 Mysore 309 1244 / 234 2182 Nagpur 253 2447 /7321 Nasik 257 7449 Panaji 242 4527/564 1070 Patiala 2211328 Patna 2322 206 Pondicherry 220575/2335722 Raipur 309 0830 Rajahmundry 556 5531 Rajkot 2241399 Salem 244 6338 Siliguri 221 6065 Surat 246 4887 / 246 4679 Trichur 2420646 Trichy 2741717 Trivandrum 272 4687 Udaipur 309 1722 Vadodara 222 5146/236 2412 Valsad 249 957Varanasi 220 8546 / 311 3810 Vijayawada 559 5657 Visakhapatnam 2598 875/2540 175

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Happy Returns a ny - Aditya Birla Capital · From the desk of CEO 3 NOVEMBER 2004 Dear Investor , A...

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