Most Mutual April 2010from Chiefs World

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Debt Overview

Market roundup

1 MOSt Wealth

In March 2010 the benchmark 6.35%, 2020 paper bond settled at

7.85% yield, down from 7.95% at the end of February. Five andTen-year corporate bond yields closed at 8.60% and 8.90%

respectively. On 19 March 2010, after the market closed, the RBI

in a surprise hiked the repo and reverse repo rates by 25bp each

with immediate effect. The repo rate was increased to 5% and the

reverse repo rate was increased to 3.50% from 3.25% earlier. The

action was a surprise as the RBI had indicated in the January policy

review that it would take into account all macro aspects in its April

2010 annual monetary policy stance for fiscal 2010-11, before

tweaking policy rates. The hike suggested that the RBI was now

worried about inflation overshooting desired levels.

Inflation as measured by the WPI (Wholesale Price Index) is expected

to be over double digit levels for March 2010. Inflation has gone

past the RBI's forecast of 8.5% at the end of March to reach 9.9%

for February 2010. The drivers of inflation are persistent with global

commodity prices at higher levels and domestic industrial growth

numbers in high double digits. India's chief statistician says India's

headline inflation should peak in March with demand-side pressures

likely to have a short-term impact on prices.

The borrowing calendar for the first half of fiscal 2011 was declared

on 29 March 2010. RBI positively surprised the market by declaring

that government planned to borrow Rs.2.87 trillion or 62.8% of

total borrowing in the first half, lower than the market expectation

of Rs.3 trillion or 70% of the total (compared with Rs.2.95 trillion

in 1H FY10). The lower-than-expected borrowing gave bondholders

near-term respite and sent yields slightly lower in the benchmark

10-year government bond. But during the next two days of trade,

Tenor AAA AA+ AA

1 Yr 104.50 122.50 142.50

3 Yr 97.10 113.50 131.10

5 Yr 87.60 107.60 124.60

10 Yr 129.30 143.30 159.30

*Over G-secs of comparable Maturity

T BILL April,10 March,10

91 Days 4.25% 4.10%

364 Days 5.05% 4.70%

Corporate Bond Spreads* as on 31st -Mar-10(bps)

G-Sec markets gave up its gains on profit booking. The benchmar

10-year paper, 6.35% GOI 2020, closed at 7.85%. The governmenwill borrow between Rs.11,000 crore and Rs.15,000 crore ever

week by issuing dated securities. Borrowings of Rs.49,000 cror

are planned in April, followed by up to Rs.65,000 crore in May

The Finance Secretary Ashok Chawla said that the RBI's decision o

open market operations (OMO), or bond buybacks, will b

taken later. He also said the program would be done in a non

disruptive manner.

Liquidity, as measured by bids for reverse repo/repo in the LA

(Liquidity Adjustment Facility) auction of the RBI was comfortabl

in the last week of the fiscal. Bids for reverse repo at 3.50% average

Rs.2,000 crore and bids for repo at 5% averaged Rs.1,700 crore

Overnight rates were at about 5%. Overnight rates are likely t

move down to 3.5% as liquidity returns to the system in the firs

week of April.

10-year( 2020)Benchmark yield

7.60%

7.65%

7.70%

7.75%

7.80%

7.85%

7.90%

7.95%

8.00%

8.05%

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3/26/2010

3/27/2010

3/28/2010

3/29/2010

3/30/2010

3/31/2010

Mo nth-end Sy stem ic Liquidity

(Rs. in crore)

-

500 , 000

1 , 000 , 000

1 , 500 , 000

2 , 000 , 000

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

APRIL 2010

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Mutual Fund Overview

Overview of funds

Category 6 Mths(%) 1 Yr(%) 3 Yrs(%)

Equity Diversified 9.91 103.34 10.35

Equity Large Cap 6.03 83.61 12.25

Index Funds 2.41 72.29 9.21

Sector Funds 9.32 104.09 8.78

ELSS Funds 7.68 85.62 11.15

Category 1 Mth(%) 6 Mths(%) 1 Yr(%)

Liquid 3.67 3.43 3.77

Liquid Plus 4.28 4.13 4.52

Income Funds 7.57 4.54 5.81

Debt MIP 18.09 6.62 17.32

Debt - Short Term 11.32 5.02 5.96

Gilt - Long Term 5.42 2.93 3.11

In March 2010 FIIs were net buyers of equity worth Rs.19,928

crore and domestic mutual funds net sold equity worth Rs.3,807

crore. In the month the Sensex gained from 16,772.56 to 17,527.77

points, or 755.21 points or 4.50%. The Nifty gained over 232.10

points to move from 5,017 to 5,249.10 points, or 4.63%. In the

Equity Diversified category SBI Magnum Sector Umbrella - Emerging

Businesses - Growth topped the charts with one-year absolute returns

of 152.68% and Birla Sun Life Mid Cap Fund - Plan A- Growth was

second with one-year absolute returns of 146.31 percent. Among

Index funds, Franklin India Index Fund - NSE Nifty Plan and ICICI

Prudential Index Fund were first and second respectively, generating

one-year absolute returns of 72.98% and 72.73% respectively.Among Sector Funds, Kotak Tech Fund topped the charts with one-

year absolute returns of 273.37% In the ELSS category, ICICI

Prudential Tax plan topped the charts with one-year absolute returns

of 123.87%.

In March, the current benchmark 6.35%, 2020 paper settled at

Rs.89.90 or 7.85% yield, down from the February closing of

Rs.89.23 or 7.95% yield. As on 31 March 2010, under the Gilt

Long term category Birla Sun Life G Sec Fund-LT-Growth topped

the charts with one-year returns of 10.83% and in case of the

Income category the topper was IDFC SSIF - MTP - Plan with one-

year returns of 12.88%. In the Debt MIP category HDFC MIP-LTP-

Growth topped the charts with one-year returns of 31.83%. Among

Liquid Funds, Escorts Liquid Plan topped with one-year returns of

5.91%. In the short-term Income category Templeton India STIP

schemes topped the charts with one-year returns of 10.89%.

1 year CAGR

Equity Funds

Debt Funds

Fund of the Month

Birla Sun Life Dividend Yield Plus

Birla Sun Life Dividend Yield Plus fund was launched in Februa

2003. It invests in high dividend paying companies. It aims to bu

a portfolio that provides high dividend yield, substantial capit

protection and a strong possibility of capital gains. Birla Sun Li

Dividend Yield Plus was the first to enter the dividend yield spac

The fund delivered an astounding performance in its very first ye

and doubled investors money, much in line with returns generat

by equity diversified funds. Since its inception the fund delivere

an annualized return of 31.66% with an asset size of Rs.348 cro

as on 26 February 2010 and in the dividend option the fund declare

dividend of 200% since inception. Ankit Sancheti has been managin

the fund since November 2007.

The scheme has a diversified portfolio of 56 scrips with the top

accounting for 33% of the portfolio with the highest allocation

4.16 % to Wyeth Ltd. The fund is diversified across 27 sectors a

top 10 sectors account for 70.86% of the portfolio with the highe

allocation of 14.75% to the Banks sector.

Scrip Name (TOP 5) As on Feb 28, 2010 Allocation (%

Wyeth Ltd. 4.1

Glaxo Smithkline Consumer Ltd. 3.8

Glaxo Smithkline Pharmaceuticals Ltd. 3.7

KEC International Ltd. 3.6

South Indian Bank Ltd. 3.3

Sector Name (TOP 5) As on Feb 28, 2010 Allocation (%

Banks 14.7

Petroleum, Gas and petrochemical products 13.3

Pharmaceuticals & Biotechnology 9.2

FMCG 6.3

Steel and Ferrous Metal 5.0

Performance (%) As on 31st March,2010

Duration Birla Sun Life Dividend CNX 50

Yield Plus- Growth

6 Months 12.52 4.7

1 Year 102.97 85.8

3 Years 22.14 11.0

5 Years 20.56 19.0

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Mutual Fund Returns

PERFORMANCE OF REC0MMENDED EQUITY SCHEMES AS ON 1ST APRIL 2010

1 CAGR Source: MFI Explorer means no histor

EQUITY DIVERSIFIED - LARGE CAP

DSP BlackRock Top 100 Equity Fund - Growth 9.11 75.02 13.65 18.32 27.48 0.1819 20.03

DWS Alpha Equity Fund - Growth 6.68 65.87 6.11 15.01 22.84 0.1717 15.05

Franklin India Bluechip - Growth 12.66 88.87 15.46 16.45 24.85 0.2014 22.46

HDFC Top 200 - Growth 10.47 96.77 18.53 20.65 28.12 0.2152 25.37

IDFC Imperial Equity Fund - Plan A - Growth 4.44 65.57 11.78 16.94 -- 0.1602 18.85

SBI Magnum Bluechip Fund - Growth 2.69 81.53 6.94 8.94 -- 0.1986 15.87

EQUITY DIVERSIFIED FUNDS

Birla Sun Life Dividend Yield Plus - Growth 12.52 102.98 25.49 22.15 20.57 0.2265 29.91

DSP BlackRock Equity Fund - Growth 9.15 92.18 15.39 -- -- 0.2191 --

HDFC Equity Fund - Growth 11.84 114.95 19.75 18.29 28.20 0.2517 27.47

Reliance Growth - Growth 11.70 109.06 15.00 19.13 29.07 0.2406 24.37

Reliance RSF - Equity - Growth 11.03 109.20 14.50 25.58 -- 0.2646 28.20

Sundaram BNP Paribas SMILE Fund - Growth 5.74 128.06 16.61 21.89 24.72 0.2858 26.96

Tata Equity P/E Fund - Growth 11.26 106.30 15.67 21.99 25.66 0.2496 25.36

THEMATIC-INFRASTRUCTURE

DSP BlackRock India Tiger Fund - Growth 5.40 77.66 4.86 12.62 26.24 0.1858 14.94ICICI Prudential Infrastructure Fund - Growth 4.27 65.75 4.63 18.34 -- 0.1708 16.03

Tata Infrastructure Fund - Growth 6.85 84.46 3.27 15.10 25.58 0.2039 15.33

ELSS

HDFC Taxsaver - Growth 12.11 110.92 16.98 15.36 24.53 0.2416 25.01

ICICI Prudential Taxplan - Growth 17.97 121.10 17.50 15.54 21.21 0.2658 27.45

Sundaram BNP Paribas Taxsaver - Growth 0.13 79.56 11.37 16.25 24.88 0.1927 17.54

INDEX FUND

HDFC Index Fund - Sensex Plus Plan 3.13 81.77 10.99 13.67 23.32 0.1891 18.22

PRINCIPAL Index Fund - Growth 2.80 69.53 3.58 9.36 18.53 0.1689 13.32

Tata Index Fund - Sensex Plan - Option A 1.61 75.38 5.19 8.68 19.56 0.1786 13.58

BALANCED

DSP BlackRock Balanced Fund - Growth 7.45 66.10 13.43 17.25 21.75 0.1674 18.99

HDFC Balanced Fund - Growth 13.77 80.73 17.64 17.35 18.42 0.1823 23.52

Reliance RSF - Balanced - Growth 12.93 89.00 23.16 22.68 -- 0.2183 28.49

ARBITRAGE DERIVATIVE EQUITY FUND

HDFC Arbitrage Fund - Retail - Growth 1.61 3.95 5.73 -- -- 0.0088 --

Kotak Equity Arbitrage Fund - Growth 1.81 4.47 5.89 6.90 -- 0.0123 5.88

Returns (P2P %)

Scheme Name 6 1 Yr 2 yrs 3 Yrs 5 Yrs Daily Rolling 3Yrs SIPMths returns (1 Yr) Returns (%)

3 MOSt Wealth MOStWealth 3


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Mutual Fund Return

PERFORMANCE OF REC0MMENDED DEBT SCHEMES AS ON 1ST APRIL 2010

MIP AGGRESSIVE

DSP BlackRock Savings Manager Fund - Aggressive - Growth0.24 0.75 0.13 3.42 18.92 0.072

DWS Twin Advantage Fund - Growth -0.48 1.31 1.39 1.42 8.35 0.035

HDFC MIP - LTP - Growth 0.52 1.66 1.68 5.05 31.47 0.115

Reliance MIP - Growth 0.31 1.35 1.08 5.45 26.15 0.096

MIP CONSERVATIVE

Birla Sun Life MIP - Savings 5 - Growth 0.25 0.61 1.05 2.49 11.54 0.044

DWS Money Plus Advantage Fund - Reg - Growth 0.46 0.78 1.16 1.79 5.24 0.021

INCOME FUND

DSP BlackRock Bond Fund - Retail Plan - Growth 0.35 0.79 0.85 1.96 4.79 0.021

IDFC SSIF - MTP - Plan A - Growth 0.43 0.91 2.06 4.52 12.88 0.051

Templeton India Income Fund - Growth 0.27 0.84 1.04 2.83 5.57 0.023

GILT FUND

Birla Sun Life GPRP - Growth 0.07 0.27 0.13 1.15 2.66 0.014

DSP BlackRock Government Securities Fund - Growth -0.10 0.12 0.30 1.54 3.68 0.018

ICICI Prudential GFIP - Growth 0.13 0.31 0.03 0.50 4.88 0.024

SHORT TERM

Birla Sun Life Short Term Fund - Growth 0.19 0.37 0.99 1.97 4.45 0.017

DSP BlackRock Short Term Fund - Growth 0.18 0.41 1.19 2.49 4.19 0.017

Templeton India STIP - Growth 0.33 0.94 1.70 4.07 10.89 0.043

LIQUID PLUS FUND

Reliance Money Manager Fund - Retail - Growth 4.87 4.48 4.31 4.45 4.97 0.020

Tata Floater Fund - Growth 5.18 4.83 4.63 4.61 5.02 0.019

LIQUID FUND

HDFC Liquid Fund - Growth 4.43 4.01 3.73 3.96 4.43 0.014

Reliance Liquid Fund - TP - Retail - Growth 4.30 4.02 3.80 4.01 4.53 0.014

LIQUID IP FUND

Birla Sun Life Cash Manager - I P - Growth 5.17 4.43 4.08 4.22 4.74 0.015

Reliance Liquid Fund - TP - IP - Growth 4.56 4.27 4.06 4.16 4.66 0.015

Returns (P2P %)

Scheme Name 2 Wks 1 Mth 3 Mths 6 Mths 1 Yr Daily RollinReturn (1 Yr

MIP Aggressive,MIP Conservative,Income Fund ,Gilt Fund, Short Term < 1 year Absolute,> 1 Year CAGR

Liquid Fund,Liquid plus Fund,Liquid IP Fund < 1 year Simple Annualised,> 1 Year CAGR .

Source: MFI Explorer means no histo

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SightOpportunity

10 MOStWealth

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Most Mutual April 2010from Chiefs World

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