EQUITY MARKET OVERVIEW

Transcription

1 AUGUST 2011 EQUITY MARKET OVERVIEW Inflation remains at elevated levels Inflation rose to 9.4% y/y in June, in line with expectations, but is expected to stay elevated over the next few months, and potentially declining towards the latter part of FY12. The latest inflation data however does not take into account the June 26 fuel price hike, in which diesel prices were raised by Rs. 3.80/ltr, and prices of LPG and Kerosene were raised by Rs. 51.4/cylinder and Rs. 2.4/ltr, respectively. Larger than expected rate hike from RBI In a bid to tame the ever rising inflation, the Reserve Bank of India (RBI) on July 26, for the third time in the last three months, hiked the short-term lending and borrowing rates sharply by 50bps, above market expectations of a 25 bps hike. With this increase, the repo rate stands at 8% while the reverse repo rate is 7%. The markets expect that the RBI will increase these policy rates by at least another 25bps this year. Since March 2010, the RBI has raised policy rates 11 times, hiking the repo rates and reverse repo rates by 325bps and 375bps respectively. The RBI has raised their year end inflation target for FY12 to 7% from 6% but has retained the GDP forecast at ~8% for the year. Industrial production well below consensus Industrial production for the month ended May 2011 grew at 5.6% y/y, significantly lower than consensus expectations of 8.5% and slightly lower than the previous month growth of 5.8%. The lower than expected growth was mainly attributed to the slowdown in consumer, capital and intermediate goods segments. Though a slowdown in consumption was expected given the meaningful rise in interest costs, the growth was sharply below market estimates. More legislative reforms On the legislative reforms front, the draft bills on MFIs (Development and Regulation) as well as the Mines and Minerals (Development and Regulation) were released. The MFI bill seeks to make the RBI the sole overseer for the MFIs, over-riding all state laws while the MMDR outlines the profit sharing and royalty for mining companies. It is expected that the proposed MMDR bill will significantly impact the earnings of the mining companies. These bills are proposed to be placed in the monsoon session of the Parliament. Global outlook also remains bleak China hiked rates for the third time this year by 25bps to combat rising inflation. It is expected that the Chinese Government may fail to meet the full year inflation target of ~4%, though expectations are that the rate hike measures undertaken will keep it below 5%.

2 The IMF, along with the European Union, approved a 3.2bn payment to Greece, to help repay its debts. A second bailout package was also agreed upon, in which Greece will get 159bn from the IMF and the Eurozone countries, and will also have an easing in the interest rates and repayment conditions. The US published its 2Q GDP numbers and they were much weaker than expected. The economy grew at an annualized rate of ~1.3% against consensus of ~1.8%. The slow growth increased the pressure on the US Government to increase its borrowing limit and tackle the deficit problem. Market Summary The June quarter results were released by companies over the course of the month, and they were, for the most part, rather weak. This tepid financial performance, combined with the bleak global outlook, caused the Nifty and the Sensex to fall by ~2.93% and ~3.44% respectively during the month. Among the sectoral indices, the BSE Cap Goods index was down ~6.54%, driven by the fall in BHEL. The BSE Metal index and the BSE Power index were down by ~6.94% and ~5.98% respectively. The BSE FMCG index and the BSE Consumer Durables index were up by ~1.18% and ~1.53%. The top gainers were Bharti Airtel, DLF, ACC and Reliance Communication with ~10.7%, ~9.8%, ~6.4% and ~6.1% gains respectively. Top losers were Jaiprakash Associates, BHEL, Jindal Steel & Power and SAIL with ~17.7%, ~10.3%, ~9.9% and ~8.1% loss respectively. Major Indices Monthly Change (%) June 11 - July 11 BSE Technology BSE Con Durables BSE FMCG BSE Cap Goods BSE Oil & Gas BSE Power BSE Healthcare BSE Auto BSE IT BSE Smallcap BSE Bank BSE Metal BSE Realty % % % % % % % % 0.36 % 1.53 % 1.18 % 1.07 % 1.83 % % % % % 0.00 % 2.00 % 4.00 % Source : Bloomberg

3 FIXED INCOME OVERVIEW The spotlight this month was on the overleveraged US economy, with both national parties battling it out over the raising of the treasury debt limit. The last day of the month saw an announcement that an agreement had been reached on the issue, with the new enhanced limit being considered sufficient till However, concerns on US fiscal health still remain, with rating agencies warning of a downgrade of US sovereign debt in case no stringent plan is laid down and implemented to rein in the runaway deficit. Sovereign problems in the European Union (EU) continued to play on the psyche of the global investing community. The two-paced growth in the developed and emerging economies became more pronounced, with increasing signs of a double-dip in the developed world, while the over-heated emerging markets are pursuing dearmoney policies to tame the burgeoning inflation. Following a general slowdown in credit off-take and demand, systemic liquidity in India was relatively easy, with LAF registering a monthhigh deficit of Rs.73,000 crores and an average of Rs.38,000 crores, in line with RBI s target ceiling of 1% of NDTL. RBI, in its monetary policy review on July 26, shocked the markets by raising policy rates by 50 bps. Its action was motivated by the stickiness and pervasiveness demonstrated by inflation in spite of RBI s hard stance since the last 1 year. Buying pressure from both banks & mutual funds, and reduced supply saw 3-month Certificates of Deposits (CD s) yields hover around %, which moved to 9.10% post-policy. 1-year CD yields hovered around %. As a result of RBI s aggressive move, yields on the benchmark 10-year G-sec, 7.80% 2021 which had remained range-bound between 8.25% and 8.30%, rose to 8.45% in a span of 2 days. More importantly, the unexpected quantum of the hike caused a marked change in market sentiment; the end of the tightening cycle which seemed just round the corner, now seems prolonged. WPI for June further heated up to 9.44% (YoY) from 9.06% in May (against market expectations of 9.68%) due to rise in prices of non-food manufactured products. Weekly food inflation fell further to 7.33% for the week ended June 18, from 7.78% for week ended June 18, due to fall in prices of vegetables on the back of good monsoons. The fuel and power index remained flat at 12.12%. Primary articles inflation closed at 10.49% v/s 11.84%. IIP growth for May (new series) further fell to 5.60% YoY from 5.80% (revised from 6.30%) for last month, due to fall in production of capital goods. Given RBI s sustained hawkish stance and evident prioritization of inflation over growth, a slowdown in the Indian economy seems imminent. Source: Bloomberg News, IDBI Asset Management Ltd. - Internal Research

4 IDBI Nifty Index Fund (An open-ended passively managed equity scheme tracking the S&P CNX Nifty Index [Total Returns Index]) 4 Scheme Features Investment objective: The investment objective of the scheme is to invest only in and all the stocks comprising the S&P CNX Nifty Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the Scheme. Benchmark: S&P CNX Nifty Index (Total Returns Index) Fund Manager: Mr. Gautam Kaul Inception Date: 25th June, 2010 NAV (as on 29th July 2011): Growth: ` Dividend: ` Plans: Growth Plan Dividend Plan - Reinvestment - Payout Asset Allocation Pattern: Instrument Stocks in the S&P CNX Nifty Index and derivative instruments linked to the S&P CNX Nifty Index Cash and Money Market Instruments including money at call but excluding Subscription and Redemption Cash Flow Indicative allocation (% of total assets) Risk Profile Min. Max. 95% 100% Medium to High 0% 5% Low to Medium Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Nil. Exit Load: 1% for exit (repurchase / switch-out / SWP), on or before 1 year from the date of allotment. For SIP 1% of Exit (repurchase / switch-out), on or before 1 year from the date of allotment of each installment. SIP: Monthly Option: ` 500/- per month for a minimum period of 12 months or ` 1,000/- per month for a minimum period of six months. Quarterly Option: ` 1,500/- per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the Scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000/- and in multiples of ` 1/- thereafter for a minimum period of 6 months. STP: Available Portfolio as on 29/07/2011 Scheme Performance as on 29/07/2011 (in %) 1 Month 3 Months 6 Months 1 Year Since Inception (25-Jun-2010) IDBI Nifty Index Fund (Growth) S&P CNX Nifty Index - TRI Source: Accord Fintech Disclaimer: Returns less than one year are absolute and one year and above are compounded annualized (CAGR). Returns pertain to growth plan. Past Performance may or may not be sustained in the future. Dividend History Payout Date Dividend Cum Dividend NAV* Ex Dividend NAV IDBI Nifty Index Fund - Dividend 15th Oct st Sept Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. * NAV of the previous business day. Sector Classification % To Net EQUITY Reliance Industries Ltd Infosys Technologies Ltd ICICI Bank Ltd ITC Ltd Larsen & Toubro Ltd HDFC Ltd 5.44 HDFC Bank Ltd State Bank of India Ltd Tata Consultancy Services Ltd Bharti Airtel Ltd Tata Steel Ltd Oil & Natural Gas Corpn Ltd Axis Bank Ltd Mahindra & Mahindra Ltd Tata Motors Ltd 2.02 Hindustan Unilever Ltd Bharat Heavy Electricals Ltd Jindal Steel & Power Ltd Sterlite Industries ( India ) Ltd NTPC Ltd Hindalco Industries Ltd Tata Power Company Ltd Gas Authority of India Ltd Dr. Reddy's Laboratories Ltd Bajaj Auto Ltd Wipro Ltd * Rounded off to the nearest two digits after the decimal point. Average AUM for the month of July 2011 : ` Crs % 4.36 % 3.84 % Please refer to the Important Note in SID for disclaimers of S&P and IISL with respect to the usage of S&P CNX Nifty Index 3.61 % 9.00 % 7.26 % 2.91 % 0.85 % 0.97 % 2.70 % 0.64 % % To Net Sun Pharmaceuticals Industries Ltd Hero Honda Motors Ltd Maruti Suzuki India Ltd Kotak Mahindra Bank Ltd CIPLA Ltd Infrastucture Development Finance Co.Ltd 0.92 Punjab National Bank Ltd Power Grid Corporation of India Ltd Grasim Industries Ltd HCL Technologies Ltd Cairn India Ltd Ambuja Cements Ltd Sesa Goa Ltd ACC Ltd Bharat Petroleum Ltd DLF Ltd Ranbaxy Laboratories Ltd Siemens Ltd Jaiprakash Associates Ltd Reliance Infrastructure Ltd Steel Authority of India Ltd Reliance Communications Ltd Reliance Capital Ltd Reliance Power Ltd Cash Receivables 0.21 Total % 6.76 % 1.26 % 2.24 % 4.11 % 1.24 % 5.60 % 8.75 % Banks Cement Construction Project Consumer Non Durables Ferrous Metals Finance Gas Industrial Capital Goods Minerals/Mining Non - Ferrous Metals Oil Petroleum Products Pharmaceuticals Power Software Telecom - Services Auto Textile Products Construction

5 IDBI Nifty Junior Index Fund (An open-ended passively managed equity scheme tracking the CNX Nifty Junior Index (Total Returns Index) Scheme Features Investment objective: The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of CNX Nifty Junior Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the CNX Nifty Junior Index as and when the derivative products on the same are made available. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the Scheme. Benchmark: CNX Nifty Junior Index (Total Returns Index) Fund Manager: Mr. Gautam Kaul Inception Date: 20th September, 2010 NAV (as on 29th July 2011): Growth: ` Dividend: ` Plans: Growth Plan Dividend Plan - Reinvestment - Payout Asset Allocation Pattern: Indicative allocation Instrument (% of total assets) Risk Profile Min. Max. Stocks in the CNX Nifty Junior Index 95% 100% Medium to and derivative instruments linked to the High CNX Nifty Junior Index as and when the derivative products are made available on the same Cash and Money Market Instruments including money at call but excluding Subscription and Redemption Cash Flow 0% 5% Low to Medium Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Nil. Exit Load: 1% for exit ( repurchase/switch-out/swp/stp) on or before 1 year from the date of allotment. For SIP 1% for exit(repurchase/switch-out/swp/stp) on or before 1 year from the date of allotment of each installment. SIP: Monthly Option: ` 500/- per month for a minimum period of 12 months or ` 1,000/- per month for a minimum period of six months. Quarterly Option: ` 1,500/- per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the Scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000/- and in multiples of ` 1/- thereafter for a minimum period of 6 months. STP: Available Portfolio as on 29/07/2011 Scheme Performance as on 29/07/2011 (in %) 1 Month 3 Months 6 Months Since Inception (20-Sept-2010) IDBI Nifty Junior Index (G)* CNX Nifty Junior-TRI *Source: Accord Fintech Disclaimer: Returns are absolute and pertains to growth plan. Past Performance may or may not be sustained in the future. Sector Classification % To Net EQUITY Coal India Ltd Bank of Baroda Ltd Asian Paints Ltd Adani Enterprises Ltd Lupin Ltd UltraTech Cement Ltd Glaxosmithkline Pharmaceuticals Ltd Titan Industries Ltd IndusInd Bank Ltd United Spirits Ltd Shriram Transport Finance Company Ltd JSW Steel Ltd Yes Bank 2.26 The Federal Bank Ltd Zee Entertainment Enterprises Ltd Bank of India Ltd Exide Industries Ltd Rural Electrification Corporation 2.09 Colgate Palmolive (India) Ltd Canara Bank Ltd Union Bank of India Ltd Mundra Port and Special Economic Zone Ltd Crompton Greaves Ltd LIC Housing Finance Ltd Power Finance Corporation Ltd Hindustan Petroleum Corporation Ltd Tata Chemicals Ltd % To Net Cummins India Ltd United Phosphorus Ltd Aditya Birla Nuvo Ltd Container Corporation of India Ltd Glenmark Pharmaceuticals Ltd Bharat Forge Ltd IDBI Bank Ltd Torrent Power Ltd The Indian Hotels Co. Ltd Oracle Financial Services Software Ltd Housing Development and Infrastructure Ltd GMR Infrastructure Ltd Bharat Electronics Ltd Ashok Leyland Ltd Mphasis Ltd Andhra Bank Ltd Industrial Finance Corporation Ltd Indian Overseas Bank Ltd Tech Mahindra Ltd Biocon Ltd Syndicate Bank Ltd 0.64 Punj Lloyd Ltd Patni Computer Systems Ltd Indiabulls Wholesale Services Ltd. # Cash Receivables 0.63 Total # Due to corporate action on India Bulls Real Estate Ltd., the scheme currently holds 6005 unlisted shares of Indiabulls Wholesale Services Ltd. (IWSL) * Rounded off to the nearest two digits after the decimal point. Average AUM for the month of July 2011 : ` Crs % 3.14 % 1.24 % 8.45 % 3.57 % 1.93 % 1.73 % 2.22 % 7.44 % 3.25 % 2.99 % 1.17 % Please refer to IISL disclaimer on page % 1.05 % 9.50 % 1.01 % 1.91 % 2.47 % % % 3.06 % 1.48 % Auto Banks Cement Construction Project Consumer Non Durables Ferrous Metals Fertilisers Finance Hotels Industrial Capital Goods Industrial Products Pesticides Petroleum Products Pharmaceuticals Power Software Trading Transportation Media & Entertainment Minerals/Mining Auto Ancillaries Construction 5

6 Rated CARE AAAmfs by CARE* IDBI Liquid Fund (An open-ended liquid scheme) Rated CRISIL AAAmfs by CRISIL* Scheme Features Investment objective: The investment objective of the Scheme will be to provide investors with high level of liquidity along with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a low risk portfolio of money market and debt instruments. Benchmark: CRISIL Liquid Fund Index Fund Manager: Mr. Gautam Kaul Inception Date: 9th July, 2010 NAV (as on 31st July 2011): Growth ` Daily Dividend ` Weekly Dividend ` Monthly Dividend ` Plans: Growth Option Dividend Option - Daily Dividend - Weekly Dividend - Monthly Dividend Asset Allocation Pattern: Instrument Money market instruments with maturity/residual maturity up to 91 days Debt instruments (including floating rate debt instruments and securitized debt)* with maturity/residual maturity/ interest rate resets up to 91 days Indicative allocation (% of total assets) Risk Profile Min. Max. 50% 100% Low 0% 50% Low to Medium * Investment is securitized debt not to exceed 50% of the net assets of the Scheme. Investment in Derivatives will be up to 50% of the net assets of the Scheme. The Scheme does not propose to invest in foreign securities. Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Not Applicable Exit Load : Nil SIP: Monthly Option: ` 500/- per month for a minimum period of 12 months or ` 1,000/- per month for a minimum period of 6 months Quarterly Option: ` 1,500/- per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the Scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000/- and in multiples of ` 1/- thereafter for a minimum period of 6 months. STP: Available Portfolio as on 31/07/2011 Rating % To Net CERTIFICATES OF DEPOSIT Punjab National Bank Ltd. PR Allahabad Bank Ltd A Canara Bank Ltd. P Axis Bank Ltd. P UCO Bank P Punjab National Bank Ltd. A Corporation Bank P Indian Overseas Bank Ltd. A Kotak Mahindra Bank Ltd. P Oriental Bank of Commerce P Vijaya Bank PR Central Bank of India PR Indian Overseas Bank Ltd. P Canara Bank Ltd. A Bank of India Ltd. P ING Vysya Bank Ltd. P Axis Bank Ltd. A HDFC Bank Ltd. PR State Bank of Bikaner & Jaipur P Andhra Bank Ltd. PR Union Bank of India Ltd. P Vijaya Bank P Rating % To Net COMMERCIAL PAPER Edelweiss Capital Ltd. P Indian Oil Corporation Ltd. P Aditya Birla Finance Ltd. A SBI Global Factors Ltd. P Alkem Laboratories Ltd. P Securities Trading Corporation of India Ltd. A Hindalco Industries Ltd. P MAGMA Fincorp Ltd. PR Srei Equipment Finance Pvt. Ltd. A Coromandel International Ltd. P Bharat Petroleum Ltd. P Srei Infrastructure Finance Ltd. PR Apollo Tyres P The Indian Hotels Co. Ltd. A Mahindra & Mahindra Fin. Ser. Ltd. P Godrej Industries Ltd. A Sterlite Industries ( India ) Ltd. P National Bank of Agriculture & Rural Development P National Housing Bank A Cash n Call Assets & Receivables 1.64 TOTAL * Rounded off to the nearest two digits after the decimal point. YTM : 8.75% Average Maturity : days Modified Duration : days Average AUM for the month of July 2011 : ` Crs. Scheme Performance as on 31/07/2011 (in %) 1 Week 2 Week 1 Month 3 Months 6 Months 1 Year Since Inception (9-July 2010) IDBI Liquid Fund (G) Crisil Liquid Fund Index Source: Accord Fintech Disclaimer: Returns less then one year are annualised and one year and above are compounded annualised (CAGR). Returns pertain to growth plan. Past performance may or may not be sustained in the future. Dividend History Payout Date Individual / HUF Dividend Others Dividend Cum Dividend NAV* Ex Dividend NAV IDBI Liquid Fund - Weekly Dividend 31st July th July th July th July rd July th June th June th June th June IDBI Liquid Fund - Monthly Dividend 25th July th June Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. * NAV of the previous business day. Asset Profile Cash & Cash Equivalent 1.64% A1+/P1+/PR % 6 * For rating disclaimers, please refer to page 10

7 Rated CARE AAAmfs by CARE* IDBI Ultra Short Term Fund (An open-ended debt scheme) Rated CRISIL AAAmfs by CRISIL* Scheme Features Investment objective: The objective of the Scheme will be to provide investors with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a diversified portfolio of money market and debt instruments with maturity predominantly between a liquid fund and a short term fund while maintaining a portfolio risk profile similar to a liquid fund. Benchmark: CRISIL Liquid Fund Index Fund Manager: Mr. Gautam Kaul Inception Date: 3rd September, 2010 NAV (as on 29 th July 2011): Growth ` Daily Dividend ` Weekly Dividend ` Monthly Dividend ` Plans: Growth Option Dividend Option - Daily Dividend - Weekly Dividend - Monthly Dividend Asset Allocation Pattern: Instrument Money market instruments/debt instruments (including floating rate debt instruments and securitized debt*) with maturity/residual maturity up to 1 year (or 365 days) Debt instruments (including floating rate debt instruments and securitized debt*) with duration/maturity/residual maturity above 1 year Indicative allocation Risk (% of total assets) Profile Min. Max. 80% 100% Low to Medium 0% 20% Medium It is the intent of the Scheme to maintain the average maturity of the portfolio within a range of 30 days to 120 days under normal market conditions depending on the fund manager s assessment of various parameters including interest rate environment, liquidity and macro-economic factors. However, the maturity profile of the scheme can undergo a change in case the market conditions warrant and at the discretion of the fund manager. *Investment in Securitized Debt not to exceed 50% of the net assets of the Scheme. Investment in Derivatives will be upto 50% of the net assets of the Scheme. Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Not Applicable Exit Load : Nil SIP: Daily Option: ` 500/- per day for a minimum of 30 installments continuously for all business days. Monthly Option: ` 500/- per month for a minimum period of 12 months or ` 1,000/- per month for a minimum period of 6 months Quarterly Option: ` 1,500/- per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the Scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000/- and in multiples of ` 1 thereafter for a minimum period of 6 months. STP: Available Portfolio as on 29/07/2011 Scheme Performance as on 29/07/2011 (in %) 1 Week 2 Week 1 Month 3 Months 6 Months Since Inception (3-Sept-2010) IDBI Ultra Short Term Fund (G) Crisil Liquid Fund Index Source: Accord Fintech Disclaimer: Returns are absolute and pertains to growth plan. Past Performance may or may not be sustained in the future. Dividend History Payout Date Rating Individual / HUF Dividend % To Net CERTIFICATES OF DEPOSIT Punjab National Bank Ltd. PR UCO Bank P Canara Bank Ltd. P Central Bank of India PR Allahabad Bank Ltd A UCO Bank PR Rating % To Net COMMERCIAL PAPERS HCL Infosystems Ltd. A Apollo Tyres P Securities Trading Corporation of India Ltd A Aditya Birla Finance Ltd A Ballarpur Industries Ltd F MAGMA Fincorp Ltd PR Kotak Mahindra Prime Ltd P Cash "n" Call Assets & Receivables TOTAL Asset includes subscription money received & utilized on 29th July, 2011 * Rounded off to the nearest two digits after the decimal point. YTM : 9.36% Average Maturity : days Modified Duration : days Average AUM for the month of July 2011 : ` Crs. Others Dividend Cum Dividend NAV* Ex Dividend NAV IDBI Ultra Short Term Fund - Weekly Dividend 26th July th July th July th July th June st June th June th June IDBI Ultra Short Term Fund - Monthly Dividend 26th July th June Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. * NAV of the previous business day. Asset Profile Cash & Cash Equivalent % A1+/P1+/PR % * For rating disclaimers, please refer to page 10 7

8 IDBI Monthly Income Plan (An open ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) Scheme Features Investment objective: The investment objective of the scheme would be to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of debt instruments, equity and money market instruments. Benchmark: CRISIL MIP Blended Index Fund Manager: Mr. Gautam Kaul & Mr. Syed Sagheer Inception Date: 7th March 2011 NAV (as on 29th July 2011): Growth ` Monthly Dividend ` Quarterly Dividend ` Plans: Growth Option Dividend Option - Monthly Dividend - Quartely Dividend Asset Allocation Pattern: Instrument Debt instruments (including floating rate debt instruments and securitized debt*) and money market instruments Indicative allocation Risk (% of total assets) Profile Min. Max. 80% 100% Low to Medium Equity and equity related instruments^ 0% 20% Medium to High *Investment in Securitized Debt will be only in investment grade rated papers and will not to exceed 25% of the net assets of the Scheme. ^The Scheme will invest in the equity and equity related instruments of only such companies which are the constituents of either the S&P CNX Nifty Index (Nifty 50) or the CNX Nifty Junior Index (Nifty Junior) comprising a combined universe of 100 stocks. These two indices are collectively referred to as the CNX 100 Index. The equity portfolio will be well-diversified and actively managed to ensure the scheme s investment objectives are realized. Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Nil Exit Load: 1% for exit up to 12 months from the date of allotment. For SIP 1% for exit up to 12 months from the date of allotment of each installment. SIP: Monthly Option: ` 500/- per month for a minimum period of 12 months or ` 1,000/- per month for a minimum period of 6 months Quarterly Option: ` 1,500/- per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1000/- and in multiples of ` 1/- thereafter for a minimum period of 6 months. STP: Available Portfolio as on 29/07/2011 Rating % To Net Rating % To Net Equity/Equity Related 4.75 NTPC Ltd Infosys Ltd Power Grid Corporation of 0.03 India Ltd. Bank of Baroda Ltd Debt Instruments - Bonds/ Tata Motors Ltd Debentures 6.40 Bharat Heavy Electricals Ltd Power Finance Corporation Ltd. AAA 6.40 Infrastucture Development 0.24 CERTIFICATES OF DEPOSIT Finance Co.Ltd. Oriental Bank of Commerce P State Bank of India Ltd Lupin Ltd Punjab & Sind Bank Ltd. P Dr. Reddy's Laboratories Ltd Canara Bank Ltd. A Power Finance Corporation Ltd Axis Bank Ltd. P Mahindra & Mahindra Ltd Bank of Baroda Ltd. A Rural Electrification Corporation 0.16 Indian Overseas Bank Ltd. A Ltd. CIPLA Ltd Central Bank of India PR Tata Consultancy Services Ltd Standard Chartered Bank P Hindalco Industries Ltd State Bank of Hyderabad A ICICI Bank Ltd State Bank of Mysore P Oil & Natural Gas Corpn Ltd Vijaya Bank PR Exide Industries Ltd COMMERCIAL PAPER Hindustan Petroleum Corporation Ltd Blue Star Ltd. PR Gas Authority of India Ltd Aditya Birla Finance Ltd. A Glenmark Pharmaceuticals Ltd Cash "n" Call Assets & Receivables 1.10 Shriram Transport Finance Company Ltd TOTAL * Rounded off to the nearest two digits after the decimal point. YTM (Debt Component) : 9.63% Average Maturity : days Modified Duration : days Average AUM for the month of July 2011 : ` Crs. Scheme Performance as on 29/07/2011 (in %) 1 Week 2 Weeks 1 Month 3 Months Since Inception (7-Mar-11 ) IDBI Monthly Income Plan (G) Crisil MIP Blended Index Source: Accord Fintech Disclaimer: Returns are absolute and pertains to growth plan. Past Performance may or may not be sustained in the future. Dividend History Payout Date Individual / HUF Dividend Asset Profile Others Dividend Cum Dividend NAV* Ex Dividend NAV IDBI Monthly Income Plan - Quarterly Dividend 4th July IDBI Monthly Income Plan - Monthly Dividend 26th July th July Cash & Cash Equivalent 1.10 % Equity 4.75 % 8 Debt %

9 IDBI Short Term Bond Fund (An open-ended Debt Scheme) Scheme Features Investment objective: The objective of the Scheme will be to provide investors with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a diversified portfolio of debt and money market instruments. Benchmark: CRISIL Short Term Bond Fund Index Fund Manager: Mr. Gautam Kaul Inception Date: 23rd March, 2011 NAV (as on 29th July 2011): Growth ` Weekly Dividend ` Monthly Dividend ` Plans: Growth Option Dividend Option - Weekly Dividend - Monthly Dividend Asset Allocation Pattern: Instrument Money market instruments/debt instruments (including floating rate debt instruments and securitized debt)* with maturity/residual maturity up to and including 2 years Debt instruments (including floating rate debt instruments and securitized debt)* with duration/ maturity/residual maturity above 2 years and not exceeding 3 years Indicative allocation Risk (% of total assets) Profile Min. Max. 65% 100% Low 0% 35% Low to Medium It is the intent of the Scheme to maintain the duration of the portfolio below 2 years under normal market conditions depending on the fund manager s assessment of various parameters including interest rate environment, liquidity and macroeconomic factors. However, the maturity profile of the scheme can undergo a change in case the market conditions warrant and at the discretion of the fund manager. Under no circumstances the average maturity/duration of the portfolio will exceed 3 years. * Investment in Securitized Debt not to exceed 25% of the net assets of the Scheme. Investment in Derivatives will be up to 50% of the net assets of the Scheme. Investment in derivatives shall be for hedging, portfolio balancing and such other purposes as maybe permitted from time to time. The gross investment in securities under the scheme, which includes money market instruments, debt instruments including floating rate debt instruments and securitized debt, and gross exposure to derivatives will not exceed 100% of the net assets of the scheme. Min. Application Amount: New Purchase ` 5000/- and in multiples of ` 1/- thereafter Min. Addl. Investment: ` 1000/- and in multiples of ` 1/- thereafter Load Structure: Entry Load: Not Applicable Exit Load: 0.5% for exit within 1 month from the date of allotment. For SIP 0.5% for exit within 1 month from the date of allotment of each installment. SIP: Monthly Option: ` 500 per month for a minimum period of 12 months or ` 1,000 per month for a minimum period of 6 months Quarterly Option: ` 1,500 per quarter for a minimum period of 4 quarters. Investments above the minimum amount mentioned must be made in multiples of ` 1/-. SWP: Minimum balance in the Scheme should be ` 25,000/- at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000/- and in multiples of Re.1/- thereafter for a minimum period of 6 months STP: Available Portfolio as on 29/07/2011 Rating % To Net CERTIFICATES OF DEPOSIT ICICI Bank Ltd. A State Bank of Hyderabad A State Bank of Mysore P Standard Chartered Bank P COMMERCIAL PAPER Aditya Birla Finance Ltd. A * Rounded off to the nearest two digits after the decimal point. Dividend History Payout Date Individual / HUF Dividend Rating % To Net Tata Capital Housing Finance Ltd. A Indian Oil Corporation Ltd. P DEBT INSTRUMENTS BONDS/DEBENTURES Tata Motors Finance AA Cash "n" Call Assets & Receivables 1.30 TOTAL YTM : 9.72 % Average Maturity : days Modified Duration : days Average AUM for the month of July 2011 : ` 9.98 Crs. Scheme Performance as on 29/07/2011 (in %) 1 Week 2 Weeks 1 Month 3 Months Since Inception (23-Mar-11 ) IDBI Short Term Bond Fund(G) Crisil Short Term Bond Fund Source: Accord Fintech Disclaimer: Returns are absolute and pertains to growth plan. Past Performance may or may not be sustained in the future. Others Dividend Cum Dividend NAV* Ex Dividend NAV IDBI Short Term Bond Fund - Weekly Dividend 26th July th July th July th July th June st June th June th June IDBI Short Term Bond Fund - Monthly Dividend 26th July th June Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any. * NAV of the previous business day. Asset Profile Cash & Cash Equivalent % A1+/P1+/PR % 9

10 Contact us Corporate Office IDBI Asset Management Limited 2nd Floor, IDBI Building, Plot No.39-41, Sector-11, CBD Belapur, Navi Mumbai Phone: Fax: website: SMS: IDBIMF on Tollfree: (between 9 a.m. 6 p.m. from Monday to Friday) Our Branches Ahmedabad : IDBI Mutual Fund, IDBI Complex, 1st Floor, Near Lal Bunglow, Off CG Road, Ahmedabad Tel.: / 68. Fax : Bengaluru : IDBI Mutual Fund, IDBI House, 1st Floor, IDBI Mutual Fund No. 58, Mission Road, Bengaluru Tel.: / Fax : Chandigarh : IDBI Mutual Fund, IDBI Bank Ltd., 3rd Floor, SCO 72/73, Bank Square, Sector - 17B, Chandigarh Tel.: Fax: Chennai : IDBI Mutual Fund, Ground Floor, Lancor Westminster Building, Old No. 108, New No. 70, Dr. Radhakrishnan Salai, Mylapore, Chennai Tel.: Fax: Delhi : IDBI Mutual Fund, IDBI Bank, 5th Floor, Red Cross Building, Red Cross Road, Parliament Street, New Delhi Tel.: Fax: Hyderabad : IDBI Mutual Fund, 3rd Floor, /1, Chapel Road, Hyderabad Tel.: Fax: Indore : IDBI Mutual Fund, IDBI Bank Ltd., Ground Floor, Alankar Chambers, Ratlam Kothi, Indore Tel.: Fax: Kochi : IDBI Mutual Fund, IDBI Bank, Corporate Office, Near Passport Office, Panampally Nagar, Kochi Tel.: Kolkatta : IDBI Mutual Fund, IDBI House, 6th floor, 44, Shakespeare Sarani, Kolkata Tel.: Fax: Lucknow : IDBI Mutual Fund, IDBI Bank, 2 M G Marg, Kisan Sekhari Bhawan, Hazratganj, Lucknow Tel.: / Mumbai : IDBI Mutual Fund, Mafatlal Center, 5th Floor, Nariman Point, Mumbai Tel.: Pune : IDBI Mutual Fund, IDBI House, 4th Floor, Dnayaneshwar, Paduka Chowk, S C Road, Shivaji Nagar, Pune Tel.: /36 Fax: The products on CNX Nifty Junior Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the products linked to CNX Nifty Junior Index or particularly in the ability of the CNX Nifty Junior Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Nifty Junior Index in the Scheme Information Document. 10 *CARE s fund credit quality rating is not a recommendation to purchase, sell, or hold a security / fund. It neither comments on the current market price, suitability for a particular investor nor on the prospective performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The ratings do not address the funds ability to meet the payment obligations to the investors. The ratings are based on current information furnished to CARE by the issuer or obtained by CARE from sources it considers reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CARE does not perform an audit in connection with any rating and may, on occasion, rely on unaudited information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Funds rated by CARE have paid a rating fee. CRISIL: The assigned rating CRISIL AAAmfs is valid for IDBI Liquid Fund and IDBI Ultra Short Term Fund. The rating of CRISIL is not an opinion of the Asset Management Company s willingness or ability to make timely payments to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments.

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