Assets Under Management Rs. 37, Crore (As on March 31, 2007)

Transcription

1 Assets Under Management Rs. 37, Crore (As on March 31, 2007)

2 From the Managing Director s Desk Pankaj Razdan Managing Director Change is the only constant thing in this world! Let me begin by thanking you for the faith that you have bestowed upon us and the support extended from your end. It is heartening for me to share with you that your AMC has grown by more than Rs. 14,000 Crs and added more than 5 lac investors to our family from the last financial year. I also take this opportunity to inform you that "Prudential ICICI Mutual Fund" has changed its name to "ICICI Prudential Mutual Fund". The change has been effected from April 01, 07 to reflect the shareholding pattern of the company. Thus, due to regulatory requirements all our fund names will have the prefix "ICICI Prudential" instead of "Prudential ICICI". However, I would like to assure you and reinstate that the abovementioned name change will have no effect, financial or otherwise, on your existing or future investments with us. The management team, fund managers, operations, processes and our commitment to serve you remain the same. It is on the basis of these robust processes and our customer centric approach that we have been able to garner ourselves with domestic as well as international accolades. This would have not been possible in the absence of your support. It gives me great pleasure to share with you that your organization has been recognized as the "Best Overall Fund Group over 3 " at the internationally acclaimed Lipper Fund Awards India Further, two of our schemes viz. ICICI Prudential Monthly Income Plan in MIP Conservative category and ICICI Prudential Infrastructure Fund in Emerging Fund of the year (diversified equity), emerged as winners in their respective categories at the CNBC-TV18 - CRISIL Mutual Fund of the Year Awards These awards are known for their credibility and rigorous methodology undertaken and are one of the most prestigious awards in the Indian Mutual Fund Industry. The Indian markets tested new highs in the last one year truly reflecting the "India Growth Story". Indian economy has been growing at an annual average rate of around 8% for the last four. The recent fall in the Indian markets was a result of RBI tightening the interest rates to contain inflation. But these shortterm market fluctuations should not dissuade and make the investors lose sight of the fundamentally strong "India Growth Story". We believe post-correction market has now become more attractive and offers opportunities to the long-term and patient investor. The long-term fundamentals remain intact and we advise investors to stay invested for the long term and follow the asset allocation strategy to tide over market volatilities. A well thought out asset allocation plan will help you to stay on course regardless of the market sentiment and acts as a protection shield should things go wrong in one investment class or sector, as is likely to be the case from time to time. Thus, we recommend our investors to participate in the equity market for a longer duration and buy on dips to achieve targeted asset allocation. It is here that the principle of rupee cost averaging through systematic investment plans (SIP) and systematic transfer plans (STP) plays a very important role. We strongly urge you to use the SIP and STP route of investments to sail through the market volatility. At ICICI Prudential Mutual Fund, it is our constant endeavor to offer you the right products to suit all your investment needs. I would like to bring to your focus our "ICICI Prudential Equity and Derivatives Fund - Wealth Optimiser Plan". This fund due to its asset allocation, stock selection and hedging strategy has performed well despite all market conditions. The fund has protected money well during the market downfalls and also captured the upside, which makes it and ideal product to invest in current volatile market. Also on the debt side, I would like to recommend Fixed Maturity Plans (FMPs) in the current high yield scenario. This product is suitable for all types of investors as it captures the high market yield with the advantages of low expenses, tax efficiency and diversification. As a part of our constant endeavor to provide enhanced service to you we have expanded our branch network and product portfolio adding value added features and customer service infrastructure for your convenience and benefit. In the coming, we shall continue to bring to you innovative products that are relevant and in line with investment needs as we have always done in the past. In case you have any suggestions or feedback for me, please write to me personally at md@iciciprumf.com. I would like to conclude by once again thanking you for your support and trust reposed on us. We are very proud to count you as a member of our investor family, and we deeply appreciate your trust in us as we continue to help you realize your and your family's financial goals. Happy Investing! 2

3 The Market O v e r v i e w Reality Check: Downward Drift not over yet, Time to reinforce 'long-termism' 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 stubbornly stayed close to the 6.50% mark. As part of its efforts to control inflation, the RBI has been trying to suck out excess liquidity in order to curtail demand. The recent hikes CRR and repo rate may be seen in the light of the same. The RBI has clearly demonstrated that inflation beyond the tolerance threshold is unacceptable. The govt has been exerting pressure on cement and steel producers to refrain from price rise, since the two form a large component of the WPI. Given its political compulsions on tackling inflation, the govt and the RBI seem to have converged in their views on withdrawal of monetary accommodation. Money Supply NEGATIVE NEGATIVE Tight liquidity on account of MSS auctions, advance tax outflows and financial year-end pressures as call rates touched 70-80%. The RBI further raised CRR to 6.50% to mop up excess liquidity on account of 'anticipated liquidity conditions' - a reference to upcoming govt spending in the new financial year as well as likelihood of heavy intervention in the forex market, given the recent rupee appreciation. Also, the Money Supply (M3) growth continued to surge at 22% as on Mar 16 '07. We believe that the 50bps CRR hike coupled with enhanced use of MSS should enable RBI to mop up excess funds from the market. Credit Demand NEGATIVE NEGATIVE Banks have managed to push up the aggregate deposits' growth was around 25% YoY. Despite its efforts to slow down credit offtake, non-food credit growth continued to rule around 30% YoY, as on Mar 16 '07, which is a major cause of worry for the RBI. Efforts have been focused on containing credit flows to real estate and highvalue consumer discretionary sectors. Banks have again hiked their lending rates, as they face increased margin pressures. We expect the RBI to maintain its tightening bias till there is a visible slowdown in credit demand. Government Borrowings NEUTRAL NEUTRAL The FY08 borrowing programme is set to begin, with a larger amount scheduled during April-May. The calendar has a higher proportion of long-term bonds to provide for banks' SLR demand. This along with RBI's concerns over credit growth, diminishes the possibility of SLR cut. Foreign Exchange Market POSITIVE NEUTRAL India's forex reserves gained to $197.75bn as of Mar 23, '07. Rupee appreciated to a 7-year high of Rs.43.04/$ as traders sold dollars to generate funds. It corrected to around Rs.43.50/ $ level due to RBI intervention, importer demand and short covering by traders. We believe through the recent rate hike, the RBI has emphasized liquidity management in the backdrop of maintaining export competitiveness and currency stability, given the fact that the rupee is around 8-10% overvalued on an REER basis. RBI Policy NEUTRAL NEGATIVE RBI seems to be worried about worsening inflationary expectations, continued high levels of growth and likelihood of excess liquidity conditions in the banking system. This seems to have triggered its unexpected move to raise repo rate by 25 bps to 7.75% and CRR by 50 bps to 6.50% in two stages. It indicated that the stance has shifted from equal emphasis on price stability and growth to reinforcing price stability. We believe that going ahead, the RBI would continue to act swiftly to prevent liquidity conditions from easing. Market Sentiment NEUTRAL NEUTRAL G-Sec yields firmed up during the month, as the liquidity conditions remained extremely tight. The sentiment was cautious as the RBI reiterated its hawkish stance by focusing on managing liquidity and inflationary expectations to achieve desired level of monetary growth. OUTLOOK Though future rate hikes cannot be completely ruled out, but we believe that in view of the recent rate hike, the probability of another hike in the April Monetary Policy Review has decreased. Yields are expected to spike sharply on surprise rate hike, before eventually settling down as market comes to terms with the same. We expect the large borrowing programme announced by RBI for April-May '07 to cause the curve to steepen, though the rise could be tempered by investor demand. 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) in their debt portfolio. Equity Market Snapshot FACTORS Fundamentals India's Index of Industrial Production (IIP) accelerated to 10.9% YoY in January (8.5%YoY for Jan '06), boosted by improvement in mining output and robust growth in manufacturing. The capital goods sector which has seen wild fluctuations in the last few months, slumped to 8.6% YoY (27% YoY Jan '06). The core industries grew 8.7% in January (8.2% in Jan '06), due to a significant jump in steel, crude and coal output. These macro numbers put together indicate that industrial growth is cruising at a steady pace, even though some moderation cannot be ruled out. India's export growth slackened in Feb '07, suggesting that achieving the $125bn export target may look difficult, with cumulative exports for the Apr-Feb '07 at $109bn. Exports grew 23.83% YoY in February, while imports shot up by 30.07% YoY, taking the overall trade deficit higher by 48.6% YoY Technicals Investments by Institutions Qtr 4'2006Qtr 1'2007 in cash market (Rs. Crs.) FIIs (Net Purchases / Sales) MFs (Net Purchases / Sales) Avg Daily Open Interest (Rs. Cr.) Index Futures 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 Valuation Ratios Qtr 4'2006 Qtr 1'2007 P/E ratio- Sensex P/E ratio- Nifty Price/Book Value Ratio-Sensex Price/Book Value Ratio-Nifty Dividend Yield-Sensex Dividend Yield-Nifty Indices Movement % change % change Oct 06-Dec 06 Jan 07-Mar 07 Sensex Nifty BSE Mid Cap BSE Small Cap BSE Auto BSE FMCG Bankex BSE Metals BSE Healthcare BSE Teck Index BSE PSU BSE Capital Goods BSE Consumer Durables BSE Oil & Gas Market Sentiments Indian markets closely tracked global markets, in the absence of any clear direction. The Sensex ended the month with marginal gains over Feb '07 amid extreme volatility. Nervousness and caution was evident on account of high Indian inflation, weak global markets, concerns over domestic growth and liquidity tightening. The lower 70% marketwide rollover (lower than last 6 months's avg of 78%) and fall in Open Interest indicate uncertainty in minds of investors. Indian markets underperformed the Emerging Markets group. FII data reported intermittent buying and MFs were seen slowly deploying amount collected during NFOs at more reasonable valuations. Cement scrips remained in highlight due to their decision to not cut prices further despite govt pressure, even though prices were agreed to be kept on hold atleast for another 1 year. Steel stocks gained on speculation of an upcoming price rise, though they had been asked to roll back earlier price hikes. Strong rupee appreciation caused decline across IT stocks. Oil Marketing & Refining Companies and Auto stocks fell as crude prices soared, while sugar stocks benefited from news of export incentives of Rs /tonne to sugar mills, in addition to creation of 20-lakh tonne sugar buffer, to deal with sugar glut. SEBI tightened norms for IPOs of real estate companies, while allowing short selling in F&O stocks by all institutional investors, and also made grading mandatory for all IPOs. Global Events FOMC kept rates unchanged for sixth consecutive time, while investors read the omission of phrase "additional firming" implying an early rate cut. But the Fed Chief clarified that focus still remains on fighting inflation, even while admitting that Fed is looking for more flexibilities given weak housing & business investment. The best bet is that rates remain unchanged, as hopes for rate cut soon seem misplaced, as consumer spending was robust. The ECB expectedly raised key interest rate to 3.75% given strong business confidence and unemployment data, furthering arguments for another rate hike by ECB. Crude prices rose above $66 as Iran-Britain standoff continued to cause marketwide nervousness. Japan's GDP grew at 5.5% p.a. for 4th qtr as exports continue to remain on upward trajectory and key driver of economy. UK's inflation remained stronger than expected, reinforcing hopes of another interest rate hike in BoE's April meeting. OUTLOOK The upbeat mood of the market was lost suddenly with steady flow of negative news such as shrinking investor risk appetite, rising volatility and higher interest rates, painting a confused picture. The market could remain cautious on the back of concerns on global liquidity and domestic concerns on inflation and sustainability of growth momentum. Banks and other interest rate sensitive sectors are likely to be worst hit by the interest rate hikes. Hence, it's time to focus on sectors with better earnings visibility and relatively less exposure to interest rate hikes. We believe that interest rate hikes are more to cut back on excesses happening the economy. Volatility is certainly on the rise but if one were to ride out the short-to-medium term, it is still an extremely healthy environment. Markets are expected to remain in range of in short term. We will see push triggers post monsoon clarity and after UP elections when the govt may announce fresh reforms. 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-06 7-Feb Feb Mar-06 2-Apr Apr-06 8-May May Jun-06 1-Jul Jul-06 6-Aug Aug Sep Sep Oct-06 4-Nov Nov Dec Dec Jan-07 2-Feb Feb Mar Mar-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 for the month of Mar'07: Retail option : 2.14% Institutional option-i : 0.99% 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: 13.60%; Benchmark : 8.58% Past performance may or may not be sustained in future % 14.00% 12.00% 8.00% 6.00% 4.00% 2.00% 7.56% 5.65% 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. 30-Sep-06 & 31-Mar-07 were non business days. Sector Allocation* *Pertains to the equity investments only. 8.72% 7.29% 13.60% 8.58% Last 6 Months Last 1 year Since Inception Fusion Fund Rs NIFTY Junior Index 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 Banks Cement Consumer Durables Consumer Non-Durable Ferrous Metals Pesticides Auto Ancillaries Petroleum Products Textiles - Products Construction Media & Entertainment Industrial Products Pharmaceuticals Software Industrial Capital Goods Fusion Fund NIFTY Junior Index 0.34% 0.62% 1.17% 2.16% 3.31% 3.80% 4.64% 5.34% 6.02% 6.87% 8.52% 10.44% 10.88% 13.38% 14.02% 4.00% 8.00% 12.00% 16.00% 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 2, % Amtek India Ltd 1, % Enkei Castalloy Ltd % Sundaram Clayton Ltd % Banks % Federal Bank Ltd % Cement % Ramco Industries Ltd % Construction 4, % Orbit Corporation Ltd 1, % Mahindra Gesco Developers Ltd 1, % Ansal Properties & Infrastructure Ltd % 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 8, % Aban Lloyd Chiles Offshore Ltd 2, % Kalpataru Power Transmission Ltd 1, % Bharat Earth Movers Ltd 1, % Bharti Shipyard Ltd 1, % Action Construction Ltd % Jyoti Ltd % Gei Hamon Industries Ltd % Gujarat Apollo Equipments Ltd % Industrial Products 6, % Jain Irrigation Systems Ltd 3, % AIA Engineering Ltd 1, % Finolex Cables Ltd 1, % Esab India Ltd % Media & Entertainment 5, % Deccan Chronicle Holdings Ltd 3, % 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, % Cadila Healthcare Ltd 1, % Dishman Pharmaceuticals & Chemicals Ltd 1, % Torrent Pharmaceuticals Ltd 1, % Software 8, % 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, % CPs and CDs 2, % Allahabad Bank - CD 2, % Term Deposits 1, % ICICI Bank 1, % Other Current Assets % Total Net Assets 64, Top Ten Holdings Quantitative Indicators: Average P/E : Std Dev : 8.37 Average P/BV : 4.14 Sharpe Ratio^ : 0.08 Average Dividend Yield: 0.82 Beta : 0.99 Annual Turnover Ratio: 0.74 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 Reuters 3 month T-Bill Index.

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 for the month of Mar'07: Retail option : 1.91% 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: 51.75%; Benchmark : 37.03% Past performance may or may not be sustained in future. Performance Record *- Cumulative Option Sector Allocation* *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. 30-Sep-06 & 31-Mar-07 were non business days. *Pertains to the equity investments only. 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 Dynamic Plan S&P CNX Nifty 49.90% 51.75% 37.03% 29.23% 12.90% 18.16% 12.35% 6.50% Last 6 Months Non-Ferrous Metals Construction Fertilizers Auto Ancillaries Cement Transportation Telecom Services Industrial Capital Goods Ferrous Metals Pharmaceuticals Oil Industrial Products Auto Consumer Non-Durable Media & Entertainment Petroleum Products Banks Software Last 1 year Dynamic Plan 0.29% 0.31% 0.81% 1.08% 1.32% 2.17% 2.64% 2.80% 2.98% 3.32% 4.13% 5.43% 5.59% 5.71% Last % S&P CNX Nifty 6.80% Since Inception 14.78% 16.07% 4.00% 8.00% 12.00% 16.00% Medium term investment of funds for capital appreciation by managing cash and equity portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 11, % Maruti Udyog Ltd 5, % Mahindra & Mahindra Ltd 3, % Tata Motors Ltd 1, % Auto Ancillaries 2, % Sundaram Clayton Ltd 1, % Amtek Auto Ltd % Banks 29, % ICICI Bank Ltd 9, % ICICI Bank Ltd-Futures 1, % State Bank of India Ltd 5, % HDFC Bank Ltd 5, % Federal Bank Ltd 4, % Punjab National Bank Ltd 2, % Cement 2, % Hyderabad Industries Ltd % Orient Paper & Industries Ltd 2, % Construction % Patel Engineering Ltd % Consumer Non-Durable 11, % ITC Limited 7, % E.I.D. Parry (India) Ltd 2, % Marico Industries Ltd 2, % Ferrous Metals 6, % Mukand Ltd 1, % Tata Steel Ltd 2, Steel Authority of India Ltd 2, % Fertilizers 1, % Coromandel Fertilisers Ltd 1, % Industrial Capital Goods 5, % Kalpataru Power Transmission Ltd 2, % Texmaco Ltd 2, % Industrial Products 10, % Jain Irrigation Systems Ltd 3, % Greaves Cotton Limited 3, % AIA Engineering Ltd 2, % Sterlite Optical Technologies Ltd 1, % Media & Entertainment 12, % Deccan Chronicle Holdings Ltd 8, % Zee Entertainment Enterprises Ltd 3, % ASC Enterprises Ltd % Non-Ferrous Metals % National Aluminium Company Ltd-Futures % Oil 8, % Oil & Natural Gas Company Ltd 5, % Oil & Natural Gas Company Ltd-Futures 2, % Petroleum Products 13, % Reliance Industries Ltd 13, % Pharmaceuticals 6, % Cadila Healthcare Ltd % Alembic Ltd 2, Dr. Reddys Laboratories Ltd 2, % Novartis India Ltd 1, % Software 32, % Tata Consultancy Services Ltd 13, % Infosys Technologies Ltd 10, % Wipro Ltd 3, % Mastek Ltd 1, % HCL Technologies Ltd % Subex Azure Ltd 2, % Telecom Services 5, % Bharati Airtel Ltd. 4, % Bharati Airtel Ltd-Futures % Transportation 4, % Containers Corporation of India Ltd 4, % Nifty Futures 13, % CPs and CDs 34, % Allahabad Bank - CD 7, % UTI Securities - CD 4, % Kotak Mahindra Bank Ltd - CD 4, % ABN Amro Bank - CD 4, % UCO Bank - CD 4, % UTI Bank Ltd - CD % Essel Propack Ltd - CP 2, % State Bank of Mysore - CD 2, % Industrial Development Bank of India Ltd - CD 2, % Term Deposits 12, % ICICI Bank 11, % Allahabad Bank 1, % Punjab National Bank % Other Current Assets (24,556.63) % Total Net Assets 201, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 3.74 Average Dividend Yield : 1.29 Annual Turnover Ratio : 2.64 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 Reuters 3 month T-Bill Index. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % 3 Year SIP 30-Apr-04 36, , , % Since Inception 31-Oct-02 54, , , % 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 88% during the month, including ~6.60% allocation to Nifty Futures, indicating a cautious stance. Exposure to Banks was further increased. The fund booked profits in Construction (Akruti Nirman), Consumer Non-Durable (Nestle, Triveni), while exposure to Ferrous Metals (Tata Steel, SAIL) was hiked. 5 Std Dev : 7.24 Sharpe Ratio^ : 0.42 Beta : 0.98 R squared : 0.8

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 for the month of Mar'07: Retail option : 2.05% 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 :17.80%; Benchmark : 9.07% Past performance may or may not be sustained in future. Performance Record* - Cumulative Option % % % % 5.00% *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. 30-Sep-06 & 31-Mar-07 were non business days. Sector Allocation* *Pertains to the equity investments only. 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 Power 12.35% 6.50% 12.08% 6.50% Last 6 Months Oil Retailing Construction Consumer Non-Durable Auto Ancillaries Auto Transportation Textiles - Products Cement Industrial Products Petroleum Products Industrial Capital Goods Telecom Services Ferrous Metals Pharmaceuticals Banks Media & Entertainment Software Last 1 year Power 0.97% 1.16% 1.33% 1.40% 2.00% 2.28% 2.31% S&P CNX Nifty 40.26% 45.36% 29.23% Last % 3.99% Last % S&P CNX Nifty 4.75% 5.20% 5.65% 7.94% 8.13% 9.48% 10.08% 17.80% 9.07% Since Inception 11.51% 4.00% 8.00% 12.00% 12.81% Fund Manager's Comment The fund maintained an average equity exposure of 94% during the month. Exposure to Consumer Non-durable (ITC) was reduced on profit booking. The fund gained exposure to Ferrous Metals (Tata Steel) and Cement (Grasim Industries) on prospects of strong performance. 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 13, % Punjab National Bank Ltd 6, % ICICI Bank Ltd 5, % Andhra Bank Ltd 1, % Cement 5, % Grasim Industries Ltd 3, % JK Cements Ltd 1, % Construction 1, % Jai Prakash Associates Ltd 1, % Consumer Non-Durable 1, % Godrej Consumer Products Ltd 1, % Ferrous Metals 11, % Steel Authority of India Ltd 5, % Usha Martin Ltd 2, % Tata Steel Ltd 1, % Sesa Goa Ltd 1, % Industrial Capital Goods 7, % Thermax Ltd 3, % Bharat Electonics Ltd 2, % Siemens India Ltd 1, % Industrial Products 6, % AIA Engineering Ltd 4, % Jain Irrigation Systems Ltd 1, % Media & Entertainment 15, % Zee Entertainment Enterprises Ltd 5, % Deccan Chronicle Holdings Ltd 5, % HT Media Ltd 2, % Global Broadcast News Ltd 2, % ASC Enterprises Ltd 1, % Oil 1, % Cairn India Ltd 1, % Petroleum Products 7, % Reliance Industries Ltd 7, % Pharmaceuticals 12, % Dr. Reddys Laboratories Ltd 2, % Sun Pharmaceuticals Ltd 2, % Ipca Laboratories Ltd 2, % Plethico Pharmaceuticals Ltd 2, % Lupin Ltd 1, % Wyeth Lederle Ltd 1, % Retailing 1, % Pantaloon Retail (India) Ltd 1, % Software 17, % Tata Consultancy Services Ltd 7, % Infosys Technologies Ltd 5, % Wipro Ltd 3, % HCL Technologies Ltd 1, % HCL Technologies Ltd-Futures % Telecom Services 10, % Bharati Airtel Ltd. 7, % Reliance Communications Ventures Ltd 2, % Textiles - Products 4, % Aditya Birla Nuvo Ltd 3, % Gokaldas Exports Ltd 1, % Transportation 3, % Containers Corporation of India Ltd 3, % CPs and CDs 8, % State Bank of Patiala - CD 8, % Term Deposits 1, % ICICI Bank 1, % Other Current Assets (2,882.83) -2.13% Total Net Assets 135, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 3.83 Average Dividend Yield : 0.97 Annual Turnover Ratio : 1.98 times Std Dev : 6.88 Sharpe Ratio^ : 0.35 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 Reuters 3 month T-Bill Index. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % 3 Year SIP 30-Apr-04 36, , % 5 Year SIP 30-Apr-02 60, , , % Since Inception 1-Oct , , , % 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 &

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 for the month of Mar'07: Retail option : 2.09% 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 Emerging S.T.A.R. Fund NIFTY Junior Index CAGR Emerging S.T.A.R. Fund : 49.86%; Benchmark : 32.41% 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. 30-Sep-06 & 31-Mar-07 were non business days. Sector Allocation* 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 % 5.65% Consumer Non-Durable Power Paper Transportation Chemicals Pharmaceuticals Finance Ferrous Metals Cement Construction Banks Textiles - Products Consumer Durables Auto Ancillaries Media & Entertainment Industrial Capital Goods Industrial Products Software 7.49% 7.29% 49.86% 32.41% Last 6 Months Last 1 year Since Inception Emerging S.T.A.R. Fund NIFTY Junior Index 0.88% 1.05% 1.08% 1.17% 1.48% 1.59% 2.37% 2.90% 2.95% 3.55% 3.69% 3.75% 3.87% 7.18% 7.19% 9.61% 11.82% 4.00% 8.00% 12.00% 16.00% 16.69% Long term investment of funds for capital appreciation on a mid-cap portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 7, % Amtek Auto Ltd 2, % Apollo Tyres Ltd 1, % Bosch Chassis Systems India Ltd 1, % Phillips Carbon Black Ltd 1, % Banks 3, % Union Bank of India Ltd 1, % Andhra Bank Ltd 1, % Bank of Baroda Ltd % Cement 3, % Birla Corporation Ltd 1, % Ramco Industries Ltd 1, % Orient Paper & Industries Ltd % Chemicals 1, % Vivimed Labs Ltd % Beck India Ltd % Construction 3, % Patel Engineering Ltd 2, % Ansal Properties & Infrastructure Ltd 1, % Consumer Durables 4, % Lloyd Electric & Engineering Ltd 1, % Mirza International Ltd 1, % Fedders Lloyd Corporation Ltd % Consumer Non-Durable % Triveni Engineering & Industries Ltd % Ferrous Metals 3, % Mukand Ltd 1, % Kalyani Steels Ltd 1, % Kamdhenu Ispat Ltd % Finance 2, % India Infoline Ltd 2, % Industrial Capital Goods 10, % Aban Lloyd Chiles Offshore Ltd 2, % Bharat Earth Movers Ltd 1, % RPG Transmission Ltd 1, % TRF Ltd 1, % Kalpataru Power Transmission Ltd 1, % Stone India Ltd % Industrial Products 12, % Sintex Industries Ltd 3, % Finolex Cables Ltd 2, % Sterlite Optical Technologies Ltd 2, % AIA Engineering Ltd 2, % Graphite India Ltd 1, % Shree Ganesh Forgings Ltd % Media & Entertainment 7, % Deccan Chronicle Holdings Ltd 5, % Jagran Prakashan Pvt Ltd 1, % Prime Focus Ltd % Paper 1, % Tamil Nadu Newsprint & Papers Ltd 1, % Pharmaceuticals 1, % Dishman Pharmaceuticals & Chemicals Ltd 1, % Power 1, % Webel SL Energy Ltd 1, % Software 17, % Nucleus Software Exports Ltd 3, % Subex Azure Ltd 3, % Mphasis BFL Software Ltd 2, % Geodesic Information Systems Ltd 2, % 3i Infotech Ltd 2, % Megasoft Ltd 2, % 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 15, % Allahabad Bank - CD 7, % UCO Bank - CD 2, % 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 % Other Current Assets (6,462.24) -6.08% Total Net Assets 105, Top Ten Holdings *Pertains to the equity investments only. Quantitative Indicators: Average P/E : Average P/BV : 3.08 Average Dividend Yield : 0.91 Annual Turnover Ratio : 1.07 times Std Dev : 8.01 Sharpe Ratio^ : 0.37 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 Reuters 3 month T-Bill Index. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % Since Inception 28-Oct-04 31, , , % 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 Fund Manager s Comment The fund maintained an average equity exposure of 90% during the month, including ~6.50% exposure to Nifty Futures, indicating a cautious stance. The fund booked some profits in Construction (Gayatri Projects, Akruti Nirman), Capital Goods (Kalpataru Power, Thermax) and Cement (India Cements). 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 for the month of Mar'07: Retail option : 2.10% 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 : 40.38%; Benchmark : 39.46% Past performance may or may not be sustained in future. Performance Record *- Growth Option Sector Allocation* 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 Discovery Fund 12.35% 6.50% -7.60% -3.66% S&P CNX Nifty 40.38% 39.46% Last 6 Months Last 1 year Since Inception *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. 30-Sep-06 & 31-Mar-07 were non business days. Non-Ferrous Metals Hardware Chemicals Pesticides Oil Ferrous Metals Textiles - Products Cement Transportation Textiles - Cotton Fertilizers Software Paper Auto Ancillaries Petroleum Products Industrial Products Banks Consumer Non-Durable Pharmaceuticals Discovery Fund 0.94% 1.16% 1.60% 1.83% 1.96% 2.36% 2.77% 3.27% 3.35% 3.74% 4.92% 5.12% 5.18% 5.32% 5.32% 6.94% 6.96% S&P CNX Nifty 9.95% 18.21% Long term investment of funds for capital appreciation following value investment philosophy Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 4, % Kesoram Industries Ltd 2, % Apollo Tyres Ltd 1, % India Nippon Elect Ltd % Banks 6, % Andhra Bank Ltd 3, % State Bank of India Ltd 2, % Cement 2, % Birla Corporation Ltd 2, % Chemicals 1, % India Glycols Ltd 1, % Consumer Non-Durable 8, % Tata Tea Ltd 4, % Ruchi Soya Industries Ltd 2, % Nirma Ltd % Rajshree Sugars & Chemicals Ltd % Ferrous Metals 2, % Jindal Steel & Power Company Ltd 2, % 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 1, % Oil & Natural Gas Company Ltd % Oil & Natural Gas Company Ltd-Futures % Paper 4, % Tamil Nadu Newsprint & Papers Ltd 2, % JK Paper Ltd 1, % Seshashayee Paper & Boards Ltd % Pesticides 1, % Rallis India Ltd 1, % Petroleum Products 4, % Reliance Industries Ltd 3, % IBP Company Ltd 1, % Pharmaceuticals 15, % Cadila Healthcare Ltd 5, % Aventis Pharma Ltd 4, % Ipca Laboratories Ltd 3, % Novartis India Ltd 1, % FDC Ltd % Software 4, % HCL Technologies Ltd 2, % HCL Technologies Ltd-Futures 1, % Mastek Ltd % Textiles - Cotton 3, % Vardhaman Textiles Ltd 3, % Textiles - Products 2, % Raymond Ltd 2, % Transportation 2, % Containers Corporation of India Ltd 2, % CPs and CDs 7, % Essel Propack Ltd - CP 4, % Industrial Development Bank of India Ltd - CD 2, % Term Deposits 3, % ICICI Bank 3, % Other Current Assets (2,499.49) -2.89% Total Net Assets 87, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 1.84 Average Dividend Yield : 2.22 Annual Turnover Ratio : 2.09 times Std Dev : 6.99 Sharpe Ratio^ : 0.35 Beta : 0.93 R squared : 0.65 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 Reuters 3 month T-Bill Index. *Pertains to the equity investments only. 4.00% 8.00% 12.00% 16.00% 2 Fund Manager's Comment The fund maintained an average equity exposure of 90% during the month, indicating a cautious stance. Exposure to Software (HCL Tech) was increased, substituting Satyam Computer. The fund exited positions in Auto. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % Since Inception 16-Aug-04 33, , , % 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 for the month of Mar'07: 2.22% CAGR Tax Plan: 31.92%; Benchmark : 14.70% 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. 30-Sep-06 & 31-Mar-07 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, 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 Tax Plan 6.50% 12.35% S&P CNX Nifty 46.96% 44.62% 29.23% 31.92% 27.55% -8.53% -4.96% Last 6 Last 1 Last 3 Last 5 Months year Tax Plan S&P CNX Nifty Media & Entertainment Textiles - Synthetic Textiles - Cotton Construction Industrial Capital Goods Hotels Textiles - Products Oil Cement Retailing Fertilizers Petroleum Products Industrial Products Chemicals Software Banks Auto Ancillaries Consumer Non-Durable Pharmaceuticals 0.45% 0.73% 0.82% 0.84% 0.94% 1.40% 1.73% 2.03% 2.60% 3.01% 3.88% 5.33% 5.39% 6.58% 7.96% 9.08% 9.23% 14.70% Since Inception 13.72% 15.12% 4.00% 8.00% 12.00% 16.00% Medium term investment of funds with tax benefits for capital appreciation Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 5, % Sundaram Clayton Ltd 1, % Kesoram Industries Ltd 1, % Rane Madras Ltd % Sundaram Brake Linings Ltd % Rane Holdings Ltd % Rane Brake Linings Ltd % Banks 5, % ICICI Bank Ltd 2, % Andhra Bank Ltd 1, % Punjab National Bank Ltd % ING Vysya Bank Ltd % Cement 1, % Orient Paper & Industries Ltd 1, % Pokarna Ltd % Chemicals 3, % Clariant Chemicals (India) Ltd 1, % Atul Ltd % India Glycols Ltd % Gwalior Chemical Industries Ltd % Andhra Sugars Ltd % Construction % Sadbhav Engineering Ltd % Consumer Non-Durable 8, % ICI India Ltd 2, % Tata Tea Ltd 2, % Gillette India Ltd 1, % ITC Limited Hindustan Sanitaryware & Industries Ltd % Harrisons Malyalam Ltd % Venky's (India) Ltd % Fertilizers 2, % Zuari Industries Ltd 1, % Gujarat State Fertilisers & Chemicals Ltd 1, % Hotels % Oriental Hotels Ltd % Industrial Capital Goods % Numeric Power Systems Ltd % Industrial Products 3, % H.E.G. Ltd 1, % Paper Products Ltd % Poleplex Corporation Ltd % MM Forgings Ltd % Media & Entertainment % Zee News Ltd % Oil 1, % Hindustan Oil Exploration Ltd 1, % Petroleum Products 3, % IBP Company Ltd 1, % Reliance Industries Ltd 1, % Pharmaceuticals 9, % Cadila Healthcare Ltd 2, % Aventis Pharma Ltd 2, % Glenmark Pharmaceuticals Ltd 1, % FDC Ltd 1, % Alembic Ltd 1, % Ahlcon Parenterals (India) Ltd % Retailing 1, % Trent Ltd 1, % Software 4, % Infosys Technologies Ltd 1, % Firstsource Solutions Ltd 1, % Wipro Ltd 1, % 3i Infotech Ltd % Visual Soft (India) Ltd % Textiles - Cotton % Precot Mills Ltd % Textiles - Products 1, % Raymond Ltd 1, % Textiles - Synthetic % Sangam India Ltd % Nifty Futures % CPs and CDs 2, % Industrial Development Bank of India Ltd - CD 1, % Kotak Mahindra Bank Ltd - CD % Term Deposits 1, % ICICI Bank 1, % UTI Bank % Other Current Assets % Total Net Assets 60, Top Ten Holdings Quantitative Indicators: Average P/E : Std Dev : 8.22 Average P/BV : 2.03 Sharpe Ratio^ : 0.37 Average Dividend Yield : 1.92 Beta : 0.95 Annual Turnover Ratio : 1.85 times R squared : 0.58 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 Reuters 3 month T-Bill Index. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % 3 Year SIP 30-Apr-04 36, , % 5 Year SIP 30-Apr-02 60, , , % Since Inception 19-Aug-99 93, , , % 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 for the month of 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 : 28.49%; Benchmark : 17.13% Past performance may or may not be sustained in future. Performance Record *- Growth Option % % % 5.00% *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. 30-Sep-06 & 31-Mar-07 were non business days. Sector Allocation* 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 12.35% 10.21% 6.50% 5.51% Last 6 Months Last 1 year Growth Plan S&P CNX Nifty 35.21% 34.81% 29.23% 27.55% 28.49% Last 3 Last 5 S&P CNX Nifty 17.13% 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 % Tata Motors Ltd % Banks 4, % ICICI Bank Ltd 1, % Punjab National Bank Ltd 1, % State Bank of India Ltd 1, % Cement 1, % Gujarat Ambuja Cement Ltd % Grasim Industries Ltd % Consumer Non-Durable 1, % ITC Limited 1, % Ferrous Metals 1, % Steel Authority of India Ltd % Tata Steel Ltd % Sesa Goa Ltd % Industrial Capital Goods 5, % Larsen & Toubro Ltd 1, % Bharat Electonics Ltd 1, % Bharat Heavy Electricals Ltd 1, % Siemens India Ltd % Media & Entertainment 1, % Zee Entertainment Enterprises Ltd 1, % ASC Enterprises Ltd % Oil 1, % Oil & Natural Gas Company Ltd 1, % Pesticides 1, % United Phosphorus Ltd 1, % Petroleum Products 2, % Reliance Industries Ltd 2, % Pharmaceuticals 2, % Sun Pharmaceuticals Ltd 1, % Dr. Reddys Laboratories Ltd 1, % Software 6, % Tata Consultancy Services Ltd 1, % Wipro Ltd 1, % Infosys Technologies Ltd 1, % Satyam Computer Services Ltd % HCL Technologies Limited % Telecom Services 3, % Bharati Airtel Ltd. 2, % Reliance Communications Ventures Ltd % Transportation 1, % Containers Corporation of India Ltd 1, % Nifty Futures 2, % CPs and CDs 5, % CitiFinancial Consumer Finance India Ltd - CP 4, % State Bank of Patiala - CD % Term Deposits 1, % ICICI Bank 1, % Other Current Assets (2,831.88) -6.57% Total Net Assets 43, Top Ten Holdings Transportation 2.74% Consumer Non-Durable 3.14% Pesticides 3.17% Cement 3.51% Ferrous Metals 3.85% Media & Entertainment 3.98% Oil 4.10% Pharmaceuticals 5.44% Petroleum Products 6.44% Auto 6.82% Telecom Services 7.10% Banks 9.54% Industrial Capital Goods 11.67% Software 14.69% 4.00% 8.00% 12.00% 16.00% *Pertains to the equity investments only. Quantitative Indicators: Average P/E : Average P/BV : 4.43 Average Dividend Yield : 1.17 Annual Turnover Ratio : 2.36 times Std Dev : 6.85 Sharpe Ratio^ : 0.31 Beta : 0.99 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 Reuters 3 month T-Bill Index. SIP Returns: As on 31-Mar-2007 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Apr-06 12, , % 3 Year SIP 30-Apr-04 36, , % 5 Year SIP 30-Apr-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 & Fund Manager's Comment The fund maintained an average equity exposure of 91% during the month, including ~5.50% exposure to Nifty Futures, indicating a cautious stance. The fund increased exposure to Ferrous Metals (Tata Steel), Capital Goods (L&T) and Telecom (Reliance Communication) while it booked profits in Auto. 10