Assets Under Management Rs. 42, Crore (As on April 30, 2007)

Transcription

1 Assets Under Management Rs. 42, Crore (As on April 30, 2007)

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3 The Market O v e r v i e w The good news returns! though this time with 'bullishness' redefined Fixed Income Market Snapshot esh Shah Chief Investment Officer Impact on Interest Rates FACTORS Short Term Medium Term (1-3 Months) (3-6 Months) Inflation NEGATIVE NEUTRAL WPI-based inflation eased below the 6% mark to 5.77% as on April 21, 2007, as manufactured goods prices slowed down. A high base effect is also expected to contribute towards moderating inflation. While average inflation for FY07 stood at 5.38% YoY, RBI aims to contain inflation 'close' to 5% in FY08. For this purpose, both RBI and the government have expressed hope that lagged effects of demand-side monetary measures would soon start showing effect. Prospects of a good monsoon have raised hopes of easing of supply-side pressures. RBI also formalized its mediumterm inflation target between 4-4.5%. Money Supply NEGATIVE NEGATIVE RBI expects to contain M3 expansion at %. In light of its lower target in the past and persistent overshooting of monetary growth, RBI seems to be willing to tolerate slightly elevated levels of money demand. But liquidity is expected to remain on a tight leash on account of MSS auctions, indicated by revision of the FY08 MSS ceiling from Rs.800bn to Rs.1100bn. RBI faces a dilemma in managing currency levels vis-à-vis inflation. It chose to focus on tackling inflation and hence, refrained from forex intervention, allowing the rupee to significantly appreciate versus the dollar. We believe that the enhanced use of MSS issuances and less currency intervention should enable RBI to mop up excess funds from the market. Credit Demand NEGATIVE NEGATIVE RBI upped its projected FY08 growth rate for non-food credit from 20% earlier to 24-25% YoY, suggesting a softening in its approach to credit growth. This however clearly signals a desired slowdown from the last 5-year average of 29.8%, even as deposit growth is estimated at 19% YoY. Some signs of moderation are becoming visible, especially in the retail loan segment, indicating that aggregate data may soon start showing signs of deceleration. RBI's decision to reduce risk weight on home loans below Rs.20 lakh gives an incentive to banks to chase loans in this segment. Government Borrowings NEUTRAL NEUTRAL Bank Deposits are expected to go up by Rs.4900bn in FY08, which would create a minimum SLR demand of Rs.1225bn. This along with demand from insurance companies and other institutions would create a severe shortage of G-Secs. Though RBI has been issuing MSS lately, adding to the SLR supply, a cut in SLR in the later part of the year cannot be ruled out. Foreign Exchange Market POSITIVE NEUTRAL India's forex reserves crossed the $200bn mark. Rupee appreciated ~5% over the last one month, to a 9-year high of Rs.40.70/$ mark, on the back of large capital inflows and USD's worldwide weakness. RBI refrained from currency market intervention in its endeavour to keep rupee liquidity tight. INR is currently around 12% overvalued on an REER basis, implying that RBI's tolerance for over-valuation has risen. In contrast to general expectations, RBI announced some positive steps towards liberalizing capital outflows rather than restricting capital inflows, in its move towards fuller convertibility. RBI Policy NEGATIVE NEGATIVE RBI's preference in its Annual Policy Review continues to remain strongly in favour of price stability and anchoring inflation expectations while ensuring a monetary and interest rate environment that supports growth momentum. RBI will continue with its policy of active liquidity management through measures including MSS, LAF and CRR. It has clearly indicated that it will respond swiftly with all possible measures to evolving global and domestic situation. Market Sentiment NEGATIVE NEUTRAL 10-year benchmark G-Sec yields rose as an effect of RBI rate hike on March 30 and concerns over liquidity tightening, despite a fall in inflation easing concerns of a nearterm hike in interest rates by RBI. The sentiment was cautious as the RBI reiterated its hawkish stance in its Annual Policy by focusing on managing liquidity and inflationary expectations to achieve desired level of monetary growth. OUTLOOK Though RBI has not raised rates in its Annual Policy , the underlying tone remains hawkish. Future rate hikes cannot be completely ruled out, considering an aggressive stance taken by RBI as regards inflation, although the timing may not be exactly predictable. The sentiment is expected to improve post May as demand outpaces supply of G-Secs. We expect interest rates to be range bound with upward bias in 1HFY08. We believe that fixed maturity products provide the best opportunity today in terms of risk-reward ratio. We recommend investors to consider Fixed Maturity Plans (FMPs)/Interval Funds in their debt portfolio. Equity Market Snapshot FACTORS Fundamentals India's Index of Industrial Production (IIP) rose by 11% YoY in February (8.8%YoY for Feb '06), boosted by robust growth in manufacturing (12.3% YoY), with the electricity sector playing the dampener. The capital goods sector which has seen wild fluctuations in the last few months, accelerated to 18.2% YoY (10.7% YoY Feb '06). The core industries grew 7.2% in February (9.1% in Feb '06), due a decline in cement and electricity output. These macro numbers put together indicate that industrial growth is cruising at a steady pace, a sign that investment intentions haven't been largely tempered. India's export growth slackened in Mar '07 (15% YoY). The export target for the fiscal year was just met with aggregate exports at $126bn ($103bn ), registering a 21% YoY increase as against 24% increase in The slowdown could however be attributed to a steady appreciation in rupee since Aug '06. Technicals Investments by Institutions Mar-07 Apr-07 Valuation Ratios Mar-07 Apr-07 in cash market (Rs. Crs.) P/E ratio- Sensex FIIs (Net Purchases / Sales) P/E ratio- Nifty MFs (Net Purchases / Sales) Price/Book Value Ratio-Sensex Avg Daily Open Interest Price/Book Value Ratio-Nifty (Rs. Cr.) Dividend Yield-Sensex Index Futures Dividend Yield-Nifty Stock Futures Index Options Stock Options Total Avg Daily Volumes (Rs. Cr.) CASH Segment BSE NSE Total Derivative Segment NSE Avg Advance Decline Ratio BSE NSE Indices Movement % change % change Feb 06-Mar06 Mar 07-Apr 07 Sensex Nifty BSE Healthcare BSE Auto BSE Consumer Durables BSE FMCG Bankex BSE Teck Index BSE PSU BSE Capital Goods BSE Oil & Gas BSE Metals BSE Mid Cap BSE Small Cap Market Sentiments The cautiousness prior to crucial Q4FY07 corporate results gave way to optimism as Infosys kicked off the results season with good numbers and strong guidance for FY08. Strong corporate performance coupled with lower inflation data, expectation of good monsoon, robust FII inflows and firm global markets aided market sentiment. Corporate earnings declared so far have been better than expected, with a 30% growth YoY while the market seemed to be expecting 20-22% growth YoY. Market was able to overcome concerns over rupee appreciation and uncertainty on the US economic outlook. FII buying picked up over the last month, indicating renewed confidence in Indian equity markets, strong global liquidity and revival of yen-carry trade. Some caution was evident at higher market levels due to concerns over domestic growth and liquidity tightening. This was reflected in the 72% marketwide rollover (lower than last 6 months's avg of 78%), indicating uncertainty in minds of investors. Indian markets continued to under perform the Emerging Markets group. Metals emerged as the strongest sector as prices on the LME rose. Strong rupee appreciation caused decline across IT stocks, while Oil Marketing & Refining Companies stocks rallied. Global Events Analysts are of the view that given its focus on inflation, Fed may stay on hold in the near term while interest rate cut is more likely later in CY07 amid easing inflation pressures. The U.S. 1Q GDP grew at the slowest pace in four (1.3% YoY versus estimated 1.8%), as weaker than expected core CPI and jobs data suggested that slower growth was gradually working its way into inflation. DJIA rallied, trading at all-time high levels in view of stronger than expected corporate earnings and speculation that economy may keep growing without prompting a rate rise. Crude oil prices fell on signs that supplies are adequate to meet refiners' summer demand for gasoline. Markets were apprehensive of tightening gasoline supplies amid US refinery problems. Chinese GDP expanded 11.1% amid rising inflation, prompting fears of further rate hikes. PBoC raised reserve ratio by 100bps, in its campaign to prevent overheating. It is clear that tightening so far has done little to curb liquidity and credit growth. China's Benchmark CSI has rebounded ~40% after the Feb. 27 plunge. USD depreciated against major currencies in view of narrowing yield gap, as US economic data was in contrast to constantly accelerating price pressures in UK, Euro-region, Australia & New Zealand. Analysts expect BoE and ECB to hike rates atleast once by June. USD dropped 27-month low against EUR to around $ and was weakest against GBP in 26 at $2 in view of the same. OUTLOOK The market looks healthy, trading in the range of plus levels as recovery continues. Corporate earnings are strong. The fact that India has under-performed EMs may suggest that some catching up could take place, given that the investors seem to have regained confidence in Indian equity on signs that corporate India is in good shape. Despite a positive outlook, bouts of volatility cannot be completely ruled out as the Indian capital market, Indian economy and Indian businesses are no longer insulated from global geo-political and economic events. On the domestic front, the market could remain cautious on account of RBI's monetary tightening and its consequent impact on the growth momentum. Hence, high returns expectations may be difficult to sustain. The market however seems to have factored these concerns in the current price levels. We expect to global liquidity, monsoon clarity and probable govt action on reforms post UP elections to play a major role in determining market direction. Therefore our recommendation to investors is as follows; 3

4 In a fair value market, maintain a neutral allocation towards equities. Do not try to time the market, as the high short-term volatility cannot be ruled out. Asset allocation and Systematic Investment Plans are the best way to safeguard against volatility. They ensure optimal returns and not the maximum return in volatile markets. Investors should look at a mix of large and mid cap funds for 3-5 horizon on systematic investment basis. Asset Allocation Guide This asset allocation guide helps you to determine the suggested equity exposure at different valuations levels based on the Sensex STRETCHED 19X -20X FAIR VALUE PLUS 17X -18X FAIR 13X -16X ATTRACTIVE 11X -12X CHEAP 9X -10X 2-Jan Jan Feb-06 6-Mar Mar Apr-06 8-May May Jun Jul Jul Aug Sep-06 2-Oct Oct Nov-06 4-Dec Dec Jan-07 5-Feb Feb Mar-07 9-Apr Apr-07 MARKET CHEAP ATTRACTIVE FAIR FAIR VALUE PLUS STRETCHED Over Invested Neutral + Neutral Neutral - Under Invested EQUITY ALLOCATION 70%-80% 55%-65% 50% 35%-45% 15%-25% BUBBLE Exit 5%-10% Valuation levels of the Sensex based on FY08 earnings estimate of Rs.830 ICICI Prudential Fusion Fund Diversified Fund (Close - Ended) Fund Manager : Deven Sangoi Indicative Investment Horizon: 5 yrs and more Inception date: Fund Size: Rs crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 2.12% Institutional option-i : 1.00% Performance Record *- Growth Option Rs invested at inception: Fusion Plan Vs S&P CNX Nifty 13,430 12,430 11,430 10,430 9,430 8,430 7,430 CAGR Fusion Fund: 22.79%; Benchmark : 17.12% Past performance may or may not be sustained in future % % % 11.28% 10.32% Fusion Fund 12.74% 9.19% Style Value Blend Growth Size Large *Returns < 1Year : Absolute, > = 1Year : CAGR. Benchmark is ^Nifty Junior Index. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* *Pertains to the equity investments only. NIFTY Junior Index 22.79% Rs Rs Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 Cement Consumer Durables Banks Consumer Non-Durable Ferrous Metals Pes tic ides Auto Ancillaries Petroleum Products Textiles - Products Cons truc tion Pharmaceuticals Media & Entertainment Indus trial Capital Goods Indus trial Produc ts Software Fusion Fund NIFTY Junior Index 17.12% Last 6 Months Last 1 year Since Inception 0.53% 1.27% 1.52% 2.14% 3.01% 3.82% 5.08% 5.67% 5.69% 8.29% 9.33% 9.99% 10.55% 10.70% 13.19% 4.00% 8.00% Mid Small 4 Suggested Equity Allocation (Assuming 50% equity allocation as neutral) Exploit the long-term investment potential of equity Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 3, % Amtek India Ltd 2, % Enkei Castalloy Ltd % Sundaram Clayton Ltd % Banks 1, % Punjab National Bank Ltd % Federal Bank Ltd % Cement % Ramco Industries Ltd % Construction 5, % Orbit Corporation Ltd 2, % Mahindra Gesco Developers Ltd 1, % IVRCL Infrastructure & Projects Ltd 1, % Unity Infraprojects Ltd % Consumer Durables % K.G. Khosla Compressors Ltd % Consumer Non-Durable 1, % ITC Limited 1, % Synergy Multibase Ltd % Ferrous Metals 2, % Kalyani Steels Ltd 2, % Industrial Capital Goods 7, % Aban Lloyd Chiles Offshore Ltd 2, % Bharti Shipyard Ltd 1, % Action Construction Ltd 1, % Jyoti Ltd % Gei Hamon Industries Ltd % Gujarat Apollo Equipments Ltd % Industrial Products 7, % Jain Irrigation Systems Ltd 3, % AIA Engineering Ltd 1, % Finolex Cables Ltd 1, % Esab India Ltd 1, % Media & Entertainment 6, % Deccan Chronicle Holdings Ltd 5, % Jagran Prakashan Pvt Ltd 1, % Pesticides 2, % United Phosphorus Ltd 1, % Rallis India Ltd % Petroleum Products 3, % Reliance Industries Ltd 3, % Pharmaceuticals 6, % Elder Pharmaceuticals Ltd 2, % Dishman Pharmaceuticals & Chemicals Ltd 1, % Cadila Healthcare Ltd 1, % Torrent Pharmaceuticals Ltd 1, % Software 9, % Subex Azure Ltd 3, % Zenith Infotech Ltd 1, % Mphasis BFL Software Ltd 1, % Firstsource Solutions Ltd 1, % Megasoft Ltd 1, % Textiles - Products 3, % Kewal Kiran Clothing Ltd 1, % Aditya Birla Nuvo Ltd 1, % Siyaram Silk Mills Ltd % Gokaldas Exports Ltd % Nifty Futures 1, % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo 3, % Other Current Assets % Total Net Assets 68, Top Ten Holdings Quantitative Indicators: Average P/E : Std Dev : 8.38 Average P/BV : 3.97 Sharpe Ratio^ : 0.16 Average Dividend Yield: 0.66 Beta : 1.00 Annual Turnover Ratio: 0.61 times R squared : 0.79 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off.

5 ICICI Prudential Dynamic Plan Diversified Fund Fund Manager : Sankaran Naren Indicative Investment Horizon: 3 yrs & more Inception date: Fund Size: Rs. 2, crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 1.94% FII option : 1.00% Rs invested at inception: Dynamic Plan Vs S&P CNX Nifty 79,665 69,665 59,665 49,665 39,665 29,665 19,665 9,665 CAGR Dynamic Plan: 52.70%; Benchmark : 38.27% Past performance may or may not be sustained in future. Performance Record *- Cumulative Option Sector Allocation* 16.42% 13.47% 16.36% 9.18% Last 6 Months Last 1 year Dynamic Plan *Returns < 1Year : Absolute, > = 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. *Pertains to the equity investments only % 52.70% Last % S&P CNX Nifty Rs Rs Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Cons truc tion Auto Ancillaries Fertiliz ers Telecom Services Cement Non-Ferrous Metals Trans portation Auto Industrial Capital Goods Pharmaceuticals Consumer Non-Durable Indus trial Produc ts Oil Media & Entertainment Ferrous Metals Petroleum Products Software Banks Dynamic Plan 0.29% 0.55% 0.83% 1.34% 1.40% 1.66% 2.10% 2.11% 2.39% 3.65% 3.89% 5.10% S&P CNX Nifty 5.95% 6.23% 6.26% 7.04% 38.27% Since Inception 12.10% 12.16% 4.00% 8.00% 12.00% Medium term investment of funds for capital appreciation by managing cash and equity portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 4, % Maruti Udyog Ltd % Mahindra & Mahindra Ltd 3, % Auto Ancillaries 1, % Sundaram Clayton Ltd 1, % Banks 26, % ICICI Bank Ltd 7, % State Bank of India Ltd 6, % Punjab National Bank Ltd 1, % HDFC Bank Ltd 6, % Federal Bank Ltd 5, % Cement 3, % Hyderabad Industries Ltd % Orient Paper & Industries Ltd 2, % Construction % Patel Engineering Ltd % Consumer Non-Durable 8, % ITC Limited 6, % E.I.D. Parry (India) Ltd 2, % Ferrous Metals 13, % Tata Steel Ltd 9, % Mukund Ltd 1, % Steel Authority of India Ltd 2, % Fertilizers 1, % Coromandel Fertilisers Ltd 1, % Industrial Capital Goods 5, % Bharat Heavy Electricals Ltd 2, % Texmaco Ltd 2, % Industrial Products 11, % Sterlite Optical Technologies Ltd 1, % Jain Irrigation Systems Ltd 3, % Greaves Cotton Limited 3, % AIA Engineering Ltd 2, % Media & Entertainment 13, % Deccan Chronicle Holdings Ltd 10, % Zee Entertainment Enterprises Ltd 2, % Non-Ferrous Metals 3, % Sterlite Industries (India) Ltd 3, % Oil 13, % Oil & Natural Gas Company Ltd 13, % Oil & Natural Gas Company Ltd-Futures % Petroleum Products 15, % Reliance Industries Ltd 15, % Pharmaceuticals 8, % Novartis India Ltd 1, % Cadila Healthcare Ltd 3, % Alembic Ltd 2, % Software 26, % Tata Consultancy Services Ltd 11, % Infosys Technologies Ltd 11, % Mastek Ltd 1, % Subex Azure Ltd 2, % Telecom Services 2, % Bharti Airtel Ltd 2, % Transportation 4, % Containers Corporation of India Ltd 4, % Nifty Futures 6, % CPs and CDs 15, % Allahabad Bank - CD 2, % State Bank of Mysore - CD 2, % UTI Bank Ltd - CD % UCO Bank - CD 4, % Kotak Mahindra Bank Ltd - CD 3, % Essel Propack Ltd - CP 2, % Term Deposits 33, % ICICI Bank 33, % Allahabad Bank % Cash, Call, CBLO & Reverse Repo 2, % Other Current Assets (3,749.73) -1.67% Total Net Assets 221, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 3.78 Average Dividend Yield : 1.36 Annual Turnover Ratio : 2.60 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % 3 Year SIP 31-May-04 36, , , % Since Inception 31-Oct-02 55, , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year 2002, 2004 & Fund Manager's Comment The fund maintained an average equity exposure at 75% during the month, including ~3% allocation to Nifty Futures, indicating a cautious stance. Exposure to Banks was further increased. The fund booked profits in Auto, Auto Ancillaries (Amtek Auto), Consumer Non-Durable (Marico) ans Software (HCL Tech, Wipro), while exposure to Ferrous Metals (Tata Steel) was hiked. 5 Std Dev : 7.26 Sharpe Ratio^ : 0.43 Beta : 0.98 R squared : 0.80

6 ICICI Prudential Power Diversified Fund Fund Manager : Anand Shah Indicative Investment Horizon: 5 yrs & more Inception date: Fund Size: Rs. 1, crores Cumulative option: Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 2.04% Institutional option- I : 1.00% Rs invested at inception: Power Plan Vs S&P CNX Nifty 96,056 86,056 76,056 66,056 56,056 46,056 36,056 26,056 16,056 6,056 CAGR Power :18.37%; Benchmark : 9.59% Past performance may or may not be sustained in future. Performance Record* - Cumulative Option % % % % % *Returns < 1Year : Absolute, > = 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* 16.42% 9.55% 12.69% 9.18% Last 6 Months Last 1 year Power *Pertains to the equity investments only % 46.07% Last 3 S&P CNX Nifty 31.54% 30.37% Last 5 Rs Rs Oct-94 Aug-95 Jun-96 Apr-97 Feb-98 Dec-98 Oct-99 Aug-00 Jun-01 Apr-02 Feb-03 Dec-03 Oct-04 Aug-05 Jun-06 Apr-07 Power S&P CNX Nifty 18.37% 9.59% Since Inception Consumer Non-Durable 0.06% Oil 0.93% Construction 1.81% Auto Ancillaries 1.97% Auto 2.10% Transportation 2.30% Textiles - Products 3.09% Industrial Products 3.72% Cement 5.23% Petroleum Products 5.60% Telecom Services 5.73% Pharmaceuticals 6.89% Ferrous Metals 7.68% Industrial Capital Goods 9.01% Banks 9.81% Softw are 10.74% Media & Entertainment 11.01% 2.00% 4.00% 6.00% 8.00% % Fund Manager's Comment The fund maintained an average equity exposure of 88% during the month, including ~2.50% allocation to Nifty futures. Exposure to Capital Goods (BHEL) was increased. The fund booked profits in (Dr. Reddy's, Lupin) Pharmaceuticals and (Reliance Communications) Telecom. The fund increased holdings in Ranbaxy. Long term investment of funds for capital appreciation in a concentrated multi sector portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 3, % Maruti Udyog Ltd 3, % Auto Ancillaries 2, % Amtek Auto Ltd 2, % Banks 14, % Punjab National Bank Ltd 6, % ICICI Bank Ltd 5, % Andhra Bank Ltd 1, % Cement 7, % Grasim Industries Ltd 5, % JK Cements Ltd 1, % Construction 2, % Jai Prakash Associates Ltd 2, % Consumer Non-Durable % Godrej Consumer Products Ltd % Ferrous Metals 11, % Tata Steel Ltd 4, % Steel Authority of India Ltd 4, % Usha Martin Ltd 1, % Industrial Capital Goods 13, % Thermax Ltd 3, % Bharat Heavy Electricals Ltd 3, % Siemens India Ltd 3, % Bharat Electonics Ltd 2, % Industrial Products 5, % AIA Engineering Ltd 3, % Jain Irrigation Systems Ltd 1, % Media & Entertainment 15, % Zee Entertainment Enterprises Ltd 6, % Deccan Chronicle Holdings Ltd 4, % HT Media Ltd 3, % Global Broadcast News Ltd 2, % Oil 1, % Cairn India Ltd 1, % Petroleum Products 8, % Reliance Industries Ltd 8, % Pharmaceuticals 9, % Ipca Laboratories Ltd 2, % Ranbaxy Laboratories Ltd 2, % Sun Pharmaceuticals Limited 1, % Plethico Pharmaceuticals Ltd 1, % Sun Pharmaceuticals Limited-Futures % Sun Pharma Advanced Research Co. Ltd % Software 15, % Tata Consultancy Services Ltd 5, % Infosys Technologies Ltd 5, % Wipro Ltd 2, % HCL Technologies Ltd 2, % Telecom Services 8, % Bharti Airtel Ltd 8, % Textiles - Products 4, % Aditya Birla Nuvo Ltd 2, % Gokaldas Exports Ltd 1, % Transportation 3, % Containers Corporation of India Ltd 3, % Nifty Futures 3, % CPs and CDs % Union Bank of India Ltd - CD % Term Deposits 3, % ICICI Bank 1, Corporation Bank 1, % Cash, Call, CBLO & Reverse Repo 13, % Other Current Assets (3,015.91) -2.07% Total Net Assets 145, Top Ten Holdings Quantitative Indicators: Average P/E : 19.5 Average P/BV : 4.1 Average Dividend Yield : 0.92 Annual Turnover Ratio : 2.04 times Std Dev : 6.92 Sharpe Ratio^ : 0.37 Beta : 0.96 R squared : 0.85 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % 3 Year SIP 31-May-04 36, , % 5 Year SIP 31-May-02 60, , , % Since Inception 1-Oct , , ,000, % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year 2002, 2004 &

7 ICICI Prudential Emerging S.T.A.R. Fund Diversified Fund Fund Manager : Deven Sangoi Indicative Investment Horizon: 3 & more Inception date: Fund Size: Rs. 1, crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 2.06% Institutional option-i : 1.00% Rs invested at inception: Emerging S.T.A.R Fund Vs S&P CNX Nifty 34,933 29,933 24,933 19,933 14,933 9,933 CAGR Emerging S.T.A.R. Fund : 52.84%; Benchmark : 35.96% Past performance may or may not be sustained in future. Performance Record *- Growth Option *Returns < 1Year : Absolute, > 1Year : CAGR. Benchmark is Nifty Junior. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* 14.26% 10.32% 12.74% 8.26% Emerging S.T.A.R. Fund Rs Rs Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Paper Trans portation Pow er Chemicals Pharmaceuticals Finance Ferrous Metals Cons truc tion Consumer Durables Textiles - Products Banks Cement Indus trial Capital Goods Auto Ancillaries Media & Entertainment Indus trial Produc ts Software Emerging S.T.A.R. Fund 52.84% NIFTY Junior Index 35.96% Last 6 Months Last 1 year Since Inception 1.08% 1.12% 1.24% 1.52% 1.71% 2.91% 2.96% 3.34% 3.36% 3.61% 4.80% 6.34% 6.80% 8.02% 8.91% NIFTY Junior Index 13.64% 17.23% 5.00% % 2 Long term investment of funds for capital appreciation on a mid-cap portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 8, % Amtek Auto Ltd 2, % Phillips Carbon Black Ltd 2, % Apollo Tyres Ltd 2, % Bosch Chassis Systems India Ltd 1, % Banks 5, % Bank of Baroda Ltd 2, % Union Bank of India Ltd 1, % Andhra Bank Ltd 1, % Cement 6, % Century Textiles & Industries Ltd 1, % Birla Corporation Ltd 1, % India Cements Ltd 1, % Ramco Industries Ltd % Orient Paper & Industries Ltd % Chemicals 1, % Vivimed Labs Ltd % Beck India Ltd % Construction 3, % Patel Engineering Ltd 2, % Nagarjuna Construction Company Ltd 1, % Consumer Durables 3, % Mirza International Ltd 1, % Lloyd Electric & Engineering Ltd 1, % Ferrous Metals 3, % Mukund Ltd 1, % Kalyani Steels Ltd 1, % Kamdhenu Ispat Ltd % Finance 3, % India Infoline Ltd 3, % Industrial Capital Goods 7, % Aban Lloyd Chiles Offshore Ltd 3, % RPG Transmission Ltd 2, % TRF Ltd 1, % Stone India Ltd % Industrial Products 14, % Sintex Industries Ltd 3, % Finolex Cables Ltd 2, % Sterlite Optical Technologies Ltd 2, % AIA Engineering Ltd 2, % Graphite India Ltd 2, % Cummins India Ltd 2, % Media & Entertainment 9, % Deccan Chronicle Holdings Ltd 7, % Jagran Prakashan Pvt Ltd 1, % Prime Focus Ltd 1, % Paper 1, % Tamil Nadu Newsprint & Papers Ltd 1, % Pharmaceuticals 1, % Dishman Pharmaceuticals & Chemicals Ltd 1, % Power 1, % Webel SL Energy Ltd 1, % Software 18, % Nucleus Software Exports Ltd 4, % Subex Azure Ltd 3, % 3i Infotech Ltd 2, % Mphasis BFL Software Ltd 2, % Geodesic Information Systems Ltd 2, % Megasoft Ltd 1, % Tech Mahindra Ltd 1, % Textiles - Products 3, % Provogue (India) Ltd 1, % Gokaldas Exports Ltd 1, % Kewal Kiran Clothing Ltd % Transportation 1, % All Cargo Global Logistics Ltd 1, % Nifty Futures 7, % CPs and CDs 5, % Essel Propack Ltd - CP 2, % Tata Power Company Ltd - CP 1, % ABN Amro Bank - CD % Kotak Mahindra Bank Ltd - CD % UTI Securities - CD % State Bank of Indore Ltd - CD % Term Deposits 2, % ICICI Bank 2, % UTI Bank % Cash, Call, CBLO & Reverse Repo 5, % Other Current Assets (8,379.15) -7.63% Total Net Assets 109, Top Ten Holdings *Pertains to the equity investments only. Quantitative Indicators: Average P/E : Average P/BV : 3.27 Average Dividend Yield : 0.84 Annual Turnover Ratio : 0.97 times Std Dev : 7.93 Sharpe Ratio^ : 0.40 Beta : 0.96 R squared : 0.76 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % Since Inception 28-Oct-04 32, , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year 2004 & Fund Manager s Comment The fund maintained an average equity exposure of 90% during the month, including ~7% exposure to Nifty Futures, indicating a cautious stance. The fund booked profits in Capital Goods (Kalpataru Power, BEML) and replaced Ansal Properties with Nagarjuna Const within Construction sector. The fund substantially increased exposure to Cement. 7

8 ICICI Prudential Discovery Fund Diversified Fund Fund Manager : Sankaran Naren Indicative Investment Horizon: 5 yrs and more Inception date: Fund Size: Rs crores Growth option: Rs Dividend option: Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 2.03% Institutional option-i : 1.00% Rs invested at inception: Discovery Fund Vs S & P CNX Nifty 34,819 29,819 24,819 19,819 14,819 9,819 CAGR Discovery Plan : 43.61%; Benchmark : 41.49% Past performance may or may not be sustained in future. Performance Record *- Growth Option Sector Allocation* 9.18% 16.42% Rs Rs Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr % 41.49% -0.97% -2.69% Last 6 Months Last 1 year Since Inception Discovery Fund S&P CNX Nifty *Returns < 1Year : Absolute, > 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Non-Ferrous Metals Transportation Hardw are Chemicals Pesticides Textiles - Products Textiles - Cotton Oil Petroleum Products Ferrous Metals Cement Softw are Fertilizers Paper Auto Ancillaries Industrial Products Banks Consumer Non-Durable Pharmaceuticals Discovery Fund 1.08% 1.13% 1.26% 2.01% 2.16% 2.62% 3.37% 3.96% 4.06% 4.31% 4.57% 4.64% 4.77% 5.16% 5.74% 6.99% S&P CNX Nifty 9.24% 10.18% 17.27% Long term investment of funds for capital appreciation following value investment philosophy Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 5, % Kesoram Industries Ltd 3, % Apollo Tyres Ltd 1, % India Nippon Elect Ltd % Banks 8, % State Bank of India Ltd 4, % Andhra Bank Ltd 4, % Cement 4, % Birla Corporation Ltd 4, % Chemicals 1, % India Glycols Ltd 1, % Consumer Non-Durable 9, % Tata Tea Ltd 5, % Ruchi Soya Industries Ltd 2, % Nirma Ltd % Rajshree Sugars & Chemicals Ltd % Ferrous Metals 3, % Jindal Steel & Power Company Ltd 2, % Tata Steel Ltd 1, % Fertilizers 4, % Gujarat State Fertilisers & Chemicals Ltd 3, % Zuari Industries Ltd % Hardware 1, % HCL Infosystems Ltd 1, % Industrial Products 6, % Finolex Cables Ltd 3, % Kirloskar Oil Engines Ltd 2, % MM Forgings Ltd % Non-Ferrous Metals % Nava Bharat Ventures Ltd % Oil 3, % Oil & Natural Gas Company Ltd 3, % Paper 4, % Tamil Nadu Newsprint & Papers Ltd 2, % JK Paper Ltd 1, % Seshashayee Paper & Boards Ltd % Pesticides 1, % Rallis India Ltd 1, % Petroleum Products 3, % Reliance Industries Ltd 2, % IBP Company Ltd 1, % Pharmaceuticals 15, % Aventis Pharma Ltd 5, % Cadila Healthcare Ltd 4, % Ipca Laboratories Ltd 3, % Novartis India Ltd 1, % FDC Ltd % Software 4, % HCL Technologies Ltd 3, % Mastek Ltd % Textiles - Cotton 3, % Vardhaman Textiles Ltd 3, % Textiles - Products 2, % Raymond Ltd 2, % Transportation 1, % Containers Corporation of India Ltd 1, % Term Deposits 2, % ICICI Bank 2, % Cash, Call, CBLO & Reverse Repo 2, % Other Current Assets % Total Net Assets 91, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 1.99 Average Dividend Yield : 2.18 Annual Turnover Ratio : 2.04 times Std Dev : 6.97 Sharpe Ratio^ : 0.38 Beta : 0.94 R squared : 0.66 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. *Pertains to the equity investments only. 5.00% % 2 Fund Manager's Comment The fund maintained an average equity exposure of 95% during the month, indicating bargain buying at lower market levels. Exposure to Ferrous Metals (TataSteel) and Banks (SBI) was increased. The fund continues to be overweight Pharmaceuticals, Paper and Textiles vis-à-vis benchmark. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % Since Inception 16-Aug-04 34, , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year

9 ICICI Prudential Tax Plan Diversified Fund Fund Manager : Sankaran Naren Indicative Investment Horizon: 3 yrs & more Inception date: Fund Size: Rs crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): 2.22% CAGR Tax Plan: 32.58%; Benchmark : 15.53% Past performance may or may not be sustained in future. Performance Record *- Growth Option *Returns < 1Year : Absolute, > = 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* *Pertains to the equity investments only. Rs invested at inception: Tax Plan Vs S&P CNX Nifty 126, ,301 86,301 66,301 46,301 26,301 6, % 16.42% % % -2 Last 6 Months Last 1 year Tax Plan 45.20% 45.42% 32.58% 31.54% 30.37% Last 3 Last 5 S&P CNX Nifty Rs Rs Aug-99 Jan-00 Jun-00 Nov-00 Apr-01 Sep-01 Feb-02 Jul-02 Dec-02 May-03 Oct-03 Mar-04 Aug-04 Jan-05 Jun-05 Nov-05 Apr-06 Sep-06 Feb-07 Non-Ferrous Metals Textiles - Synthetic Media & Entertainment Textiles - Cotton Cons truc tion Hotels Textiles - Products Ferrous Metals Cement Oil R etailing Fertiliz ers Petroleum Products Indus trial Capital Goods Indus trial Produc ts Chemicals Software Auto Ancillaries Banks Consumer Non- Pharmaceuticals Tax Plan S&P CNX Nifty 15.53% Since Inception 0.20% 0.59% 0.67% 0.78% 0.95% 1.49% 1.57% 2.25% 2.64% 2.86% 2.93% 3.95% 4.31% 4.97% 5.44% 6.08% 7.02% 8.59% 9.45% 12.34% 13.59% 4.00% 8.00% Medium term investment of funds with tax benefits for capital appreciation Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 5, % Rane Madras Ltd % Sundaram Brake Linings Ltd % Rane Holdings Ltd % Sundaram Clayton Ltd 1, % Kesoram Industries Ltd 1, % Rane Brake Linings Ltd % Banks 6, % ICICI Bank Ltd 2, % ING Vysya Bank Ltd % Andhra Bank Ltd 1, % Punjab National Bank Ltd 1, % Cement 1, % Orient Paper & Industries Ltd 1, % Pokarna Ltd % Chemicals 3, % India Glycols Ltd % Gwalior Chemical Industries Ltd % Atul Ltd % Andhra Sugars Ltd % Clariant Chemicals (India) Ltd 1, % Construction % Sadbhav Engineering Ltd % Consumer Non-Durable 8, % ICI India Ltd 3, % Hindustan Sanitaryware & Industries Ltd % Tata Tea Ltd 2, % Gillette India Ltd 1, % Harrisons Malyalam Ltd % Venky's (India) Ltd % Ferrous Metals 1, % Tata Steel Ltd 1, % Fertilizers 2, % Zuari Industries Ltd 1, % Gujarat State Fertilisers & Chemicals Ltd 1, % Hotels % Oriental Hotels Ltd % Industrial Capital Goods 3, % Numeric Power Systems Ltd % Bharat Heavy Electricals Ltd 2, % Industrial Products 3, % Paper Products Ltd % Poleplex Corporation Ltd % H.E.G. Ltd 1, % MM Forgings Ltd % Media & Entertainment % Zee News Ltd % Non-Ferrous Metals % National Aluminium Company Limited-Futures % Oil 1, % Hindustan Oil Exploration Ltd 1, % Oil & Natural Gas Company Ltd % Petroleum Products 2, % Reliance Industries Ltd IBP Company Ltd 2, % Pharmaceuticals 8, % Cadila Healthcare Ltd 2, % Glenmark Pharmaceuticals Ltd 1, % Aventis Pharma Ltd 2, % FDC Ltd 1, % Alembic Ltd 1, % Ahlcon Parenterals (India) Ltd % Retailing 1, % Trent Ltd 1, % Software 4, % Infosys Technologies Ltd 2, % 3i Infotech Ltd % Firstsource Solutions Ltd % Megasoft Ltd % Textiles - Cotton % Precot Mills Ltd % Textiles - Products 1, % Raymond Ltd 1, % Textiles - Synthetic % Sangam India Ltd % Term Deposits 1, % ICICI Bank % UTI Bank % Cash, Call, CBLO & Reverse Repo 2, % Other Current Assets 1, % Total Net Assets 65, Top Ten Holdings Quantitative Indicators: Average P/E : Std Dev : 8.08 Average P/BV : 2.2 Sharpe Ratio^ : 0.35 Average Dividend Yield : 1.67 Beta : 0.94 Annual Turnover Ratio : 1.80 times R squared : 0.59 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % 3 Year SIP 31-May-04 36, , % 5 Year SIP 31-May-02 60, , , % Since Inception 19-Aug-99 94, , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year 2002 &

10 ICICI Prudential Growth Plan Diversified Fund Fund Manager : Deven Sangoi Indicative Investment Horizon: 5 & more Inception date: Fund Size: Rs crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): Retail option : 2.30% Institutional option-i : 1.00% Rs invested at inception: Growth Plan Vs S & P CNX Nifty 108,365 98,365 88,365 78,365 68,365 58,365 48,365 38,365 28,365 18,365 8,365 CAGR Growth Plan : 29.13%; Benchmark : 17.85% Past performance may or may not be sustained in future. Performance Record *- Growth Option % % % % *Returns < 1Year : Absolute, > 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* 9.18% 16.42% 7.54% 10.60% Last 6 Months Last 1 year Growth Plan S&P CNX Nifty 36.80% 36.70% 31.54% 30.37% 29.13% Last 3 Last 5 Rs Rs Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Growth Plan S&P CNX Nifty 17.85% Since Inception Long term investment of funds for capital appreciation Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 2, % Maruti Udyog Ltd 1, % Mahindra & Mahindra Ltd % Banks 4, % ICICI Bank Ltd 1, % State Bank of India Ltd 1, % Punjab National Bank Ltd 1, % Cement 2, % Grasim Industries Ltd 1, % Gujarat Ambuja Cement Ltd % Construction % Jai Prakash Associates Ltd % Consumer Non-Durable 1, % ITC Limited 1, % Ferrous Metals 2, % Steel Authority of India Ltd 1, % Tata Steel Ltd 1, % Industrial Capital Goods 4, % Larsen & Toubro Ltd 1, % Bharat Electonics Ltd 1, % Bharat Heavy Electricals Ltd 1, % Media & Entertainment 1, % Zee Entertainment Enterprises Ltd 1, % Oil 2, % Oil & Natural Gas Company Ltd 2, % Pesticides 1, % United Phosphorus Ltd 1, % Petroleum Products 3, % Reliance Industries Ltd 3, % Pharmaceuticals 1, % Sun Pharmaceuticals Limited % Ranbaxy Laboratories Ltd % Dr. Reddys Laboratories Ltd % Sun Pharmaceuticals Limited-Futures % Sun Pharma Advanced Research Co. Ltd % Software 5, % Tata Consultancy Services Ltd 1, % Infosys Technologies Ltd 1, % Wipro Ltd 1, % HCL Technologies Ltd % Satyam Computer Services Ltd % Telecom Services 3, % Bharti Airtel Ltd 2, % Reliance Communications Ventures Ltd 1, % Transportation 1, % Containers Corporation of India Ltd 1, % Nifty Futures 3, % CPs and CDs % State Bank of Patiala - CD % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo 7, % Other Current Assets (4,597.19) -9.86% Total Net Assets 46, Top Ten Holdings Construction 2.05% Transportation 2.70% Pesticides 2.98% Consumer Non-Durable 3.08% Media & Entertainment 3.69% Pharmaceuticals 3.97% Cement 4.49% Auto 4.58% Ferrous Metals 4.94% Oil 5.07% Petroleum Products 7.44% Telecom Services 7.76% Industrial Capital Goods 9.38% Banks 10.17% Software 11.78% 4.00% 8.00% 12.00% *Pertains to the equity investments only. Quantitative Indicators: Average P/E : Average P/BV : 4.34 Average Dividend Yield : 1.16 Annual Turnover Ratio : 2.26 times Std Dev : 6.88 Sharpe Ratio^ : 0.33 Beta : 1.00 R squared : 0.93 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % 3 Year SIP 31-May-04 36, , % 5 Year SIP 31-May-02 60, , , % Since Inception 9-Jul , , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the year 2002, 2004 & Fund Manager's Comment The fund maintained an average equity exposure of 91% during the month, including ~8% exposure to Nifty Futures, indicating a cautious stance. The fund booked profits in Auto (Tata Motors), Ferrous Metals (Sesa Goa) and Capital Goods (Siemens). 10

11 ICICI Prudential Infrastructure Fund Thematic Fund Fund Manager : Sankaran Naren Indicative Investment Horizon: 5 yrs and more Inception date: Fund Size: Rs. 1, crores Growth option : Rs Dividend option : Rs **Expense Ratio (6 Months avg. Oct 06-Mar 07): 1.93% Performance Record *- Growth Option *Returns < 1Year : Absolute, > = 1Year : CAGR. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Past performance may or may not be sustained in future. 29-Apr-06 & 30-Apr-06 were non business days. Sector Allocation* *Pertains to the equity investments only. Rs invested at inception: Infrastructure Fund Vs S&P CNX Nifty 21,420 19,420 17,420 15,420 13,420 11,420 9,420 CAGR Infrastructure : 47.99%; Benchmark : 38.28% Past performance may or may not be sustained in future % 9.18% 18.64% 16.42% Rs Rs Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr % 38.28% Last 6 Months Last 1 year Since Inception Infrastructure Fund S&P CNX Nifty Cement Non-Ferrous Metals Dredging Hotels Telecom Services Trans portation Auto Ancillaries Indus trial Produc ts Pow er Oil Petroleum Products Cons truc tion Indus trial Capital Goods Banks Ferrous Metals Infrastructure Fund 0.30% 1.52% 2.07% 2.10% 2.43% 2.80% 3.72% 5.21% S&P CNX Nifty 5.59% 5.91% 7.29% 8.77% 9.41% 12.32% 13.60% 4.00% 8.00% Long term investment of funds for capital appreciation derived from the growth and development of the infrastructure sector Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 6, % Kesoram Industries Ltd 6, % Banks 21, % ICICI Bank Ltd 6, % Andhra Bank Ltd 4, % HDFC Bank Ltd 4, % State Bank of India Ltd 3, % Punjab National Bank Ltd 2, % Cement % JK Cements Ltd % Construction 14, % Patel Engineering Ltd 6, % Nagarjuna Construction Company Ltd 2, % Gammon India Ltd 2, % Jai Prakash Associates Ltd 2, % BL Kashyap and Sons Ltd 1, % Dredging 3, % Dredging Corporation of India Ltd 3, % Ferrous Metals 23, % Jindal Steel & Power Company Ltd 10, % Steel Authority of India Ltd 5, % Usha Martin Ltd 4, % Adhunik Metaliks Ltd 2, % Tata Steel Ltd 1, % Hotels 3, % EIH Ltd 3, % Industrial Capital Goods 16, % Bharat Heavy Electricals Ltd 9, % Siemens India Ltd 3, % Kalpataru Power Transmission Ltd 1, % ABG Heavy Industries Ltd 1, % Industrial Products 8, % Cummins India Ltd 4, % Electrosteel Castings Ltd 4, % Non-Ferrous Metals 2, % Sterlite Industries (India) Ltd 2, % Oil 10, % Oil & Natural Gas Company Ltd 7, % Oil & Natural Gas Company Ltd-Futures 1, % Hindustan Oil Exploration Ltd 1, % Petroleum Products 12, % Reliance Industries Ltd 12, % Power 9, % Tata Power Company Ltd 6, % Gujarat Industries Power Company Ltd 3, % Telecom Services 4, % Bharti Airtel Ltd 4, % Transportation 4, % Containers Corporation of India Ltd 4, % CPs and CDs 1, % Industrial Development Bank of India Ltd - CD % UTI Bank Ltd - CD % State Bank of Saurashtra Ltd - CD % State Bank of Indore Ltd - CD % Term Deposits 18, % Allahabad Bank 9, % ICICI Bank 8, % UTI Bank % Cash, Call, CBLO & Reverse Repo 8, % Other Current Assets % Total Net Assets 171, Top Ten Holdings SIP Returns: As on 30-Apr-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 31-May-06 12, , % Since Inception 31-Aug-05 21, , , % Past performance may or may not be sustained in future. Assume Rs invested every month. The high level of returns come from the sharp appreciation in market, in the 2005 & Quantitative Indicators: Average P/E : Average P/BV : 2.71 Average Dividend Yield : 1.38 Annual Turnover Ratio : 2.30 times Std Dev : 8.18 Sharpe Ratio^ : 0.37 Beta : 1.14 R squared : 0.84 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. ^ Risk-free rate based on the last 3 month T-Bill cut-off. Fund Manager's Comment The fund maintained its average equity exposure at 84% during the month, indicating a cautious stance and profit booking. Exposure to Auto was reduced to zero, as holdings in Ferrous Metals (Sesa Goa) was replaced with Tata Steel. The portfolio is skewed towards large cap as the fund seeks to maximize the risk-return payoff. 11