A Bluechip fund that seeks to provide. An Open-Ended Equity Scheme.

Transcription

1 July 2013 Infosys ITC Bharti Airtel Hindustan Zinc Reliance Industries Bajaj Auto ICICI Bank Tata Motors Cairn India Grasim Industries HDFC Bank Larsen & Toubro... A Bluechip fund that seeks to provide Growth Stability FOCUSEDBLUECHIP E Q U I T Y F U N D An Open-Ended Equity Scheme Some of the portfolio holdings as on June 30, * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk HIGH RISK (BROWN) (BROWN) investors understand that their principal will be at high risk The above stocks are not an endorsement by the Mutual Fund and AMC of their soundness or a recommendation to buy or sell these stocks. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

2 The Market O v e r v i e w Equity Market Outlook Global economy Global economic sentiment weakened in June 13 after US Federal Reserve cleared the air on uncertainty prevailing on discontinuing its asset purchase programme. At the latest monetary policy meeting held on June 19, 2013, the US Fed Chairman, Ben Bernanke announced that the central bank will start scaling back its stimulus measures later this year and end the program by the middle of However, the US central bank indicated that it would continue to purchase treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in the context of price stability. Sentiments were hit on fears that stoppage of bond buying by the US Fed could dry out the excess liquidity in the markets across asset classes. Europe continued to fall deeper in recession as the European Central Bank (ECB) in its latest forecast downgraded the region s growth to negative 0.6% for CY2013 compared to the earlier forecast of negative 0.5%. In Japan, the central bank continued with its expansive monetary policy of supplying money at an annual pace of 60 to 70 trillion yen to turn around years of deflation and target 2% inflation in two years. (Data Source: Reuters) In Asia, the People s Bank of China said that it will fine-tune its policies as needed and suggested slightly easier monetary conditions as slowdown worries continued to dampen sentiments in the world s second largest economy. The impact of the US central bank s decision was felt in India as well with the Indian rupee falling sharply by over 7% in the month as well as touched a record low of Rs per USD on June 26. The 10-year government bond (7.16% 2023) yield hardened to 7.44% (June 28) from 7.24% as of May 31. RBI maintained status quo on interest rates at its policy review on June 6. (Data Source: RBI website, CRISIL Research) Fundamentals and Economics: Growth Index of Industrial Production (IIP) slowed down to 2.0% in April 13 from 3.4% in the previous month. Manufacturing growth remained weak at 2.8% in April 13 and came from only a handful of industries. Fuel shortages, ongoing mining ban in some states, delays in commissioning of large projects and moderation in demand continued to plague India s industrial sector. On the sectoral front, the mining sector contracted by 3% in April 13 compared to 2.8% a year ago. Shortages in coal and natural gas led to a deceleration in electricity output growth to 0.7% in April 13 from 3.5% in March 13. Capital goods growth fell sharply to 1.0% in April 13 from 9.0% in the previous month. (Data Source: Ministry of Statistics and Programme Implementation). Inflation The Wholesale Price Index (WPI) inflation fell to a 43-month-low of 4.70% in May 13 from 4.89% in the previous month. Manufactured inflation fell to 3.1%, driven by deflation in ferrous metals and very low levels of inflation in non-ferrous metals. Meanwhile, inflation rate based on the new Consumer Price Index (Combined) fell to a 15-month low of 9.31% in May 13 from 9.39% in the previous month. (Data Source: CEIC) Deficit India s exports declined 1.1% to USD24.51 bn in May 13; compared to USD24.8 bn in the same month of the previous year while the imports rose 7% to USD44.6 bn in May 13. As a result, the trade deficit for the month widened to USD20.1 bn, up by 18.8% y-o-y (year-on-year). Growing imports along with declining exports have widened trade deficit and worsened India s external account vulnerability to sudden capital outflows. This was reflected in the sudden depreciation of rupee in June 13. Meanwhile, India s current account deficit (CAD) narrowed sharply to 3.6% of GDP in Q4 of from a historically high level of 6.7% of GDP in Q3 of For the fiscal , CAD stood at 4.8% as compared with 4.2% during (Data Source: CRISIL Research) Currency The Indian rupee depreciated sharply in the month, but closed at Rs per USD on June 28, 2013 (off its record low of Rs per USD reached on June 26, 2013). The local unit joined other emerging currencies in their fall against the USD after the US Fed indicated plans of withdrawing its monetary stimulus in the coming months. (Data Source: Reuters) 1 Year CD Rate One year Certificate of Deposit (CD) rate stood at 8.15% as on June 28, (Data Source: FIMMDA) Market Sentiments Flows Foreign Institutional Investors (FIIs) were net sellers of Indian equities in June 13. FIIs were net sellers to the tune of Rs 11,425 crore in June 2013 compared to net purchase of Rs 13,082 crore in May This is the first month of net selling by FIIs since May 2012 and the highest net selling since May Domestic Institutional Investors (DIIs) were net buyers of Rs 9,248 crore in equities compared with net selling of Rs 12,052 crore in the previous month. On a year to date basis, FIIs are net buyers to the tune of Rs 45,279 crore while DIIs are net sellers of Rs 40,195 crore. (Data Source: SEBI) Market Performance June 13 was a disappointing month for the Indian equity markets with the key benchmark indices CNX Nifty and S&P BSE Sensex falling by 2.40% and 1.84%, respectively as a result of discouraging global and domestic cues. On the global front, US Federal Reserve Chairman Ben Bernanke s comments that the US central bank will start pulling back its stimulus measures later this year - if the economy is strong enough, pulled down markets. In India, persistent decline of rupee (caused by the Fed s comments) which raised fears about higher inflation, higher current account deficit and delay in more policy rate cuts exerted pressure on the markets. Net selling by FIIs (highest since May 2010) also brought down the market during the month. Majority of S&P BSE sectoral indices fell in June 13 except for S&P BSE Oil & Gas and S&P BSE IT. S&P BSE IT index emerged as the topmost gainer among all the indices analyzed, rising 3.13% as the weak rupee aided the stocks in the export-oriented sector. S&P BSE Oil & Gas gained 2.84% after the Cabinet Committee on Economic Affairs (CCEA) approved a hike in natural gas prices. S&P BSE Consumer Durable index was the biggest loser, down by 20.28% on profit booking. S&P BSE Realty index fell sharply by 10.32% as the interest rate sensitive sector was affected by worries of delay in further rate cuts by the RBI. (Data Source: NSE India, BSE India) Triggers Global equity markets continue to remain under pressure due to the recent Fed announcement to withdraw its stimulus program over the medium term. Markets will be monitoring further statements by the US Fed and other major global central banks as well as global macroeconomic data as these could trigger short term movements. Trend in FII flows is expected to continue to impact movement of domestic equity markets in the short term. Continuous selling by FII of Indian equities to the extent of US$2 billion will be a key trigger to watch. A quarter with average trade deficit of US bn per month will also be a positive factor for the domestic equity market. The spatial and temporal distribution of rainfall over the next three months will be crucial. The Indian economy benefits from lower crude prices and crude below at US $95 per barrel works in favor for Indian equities. The sharp depreciation of the rupee could however be detrimental for the Indian markets though the RBI is expected to support any further decline below the Rs. 60 per USD mark. Outlook From a long-term perspective of investing in equities, the parameter that is missing today in India is a pick-up in growth. Growth is expected to eventually pick up. How soon it does is not clear at this point in time. May be this year or the following one, but it is expected to pick-up. While the level on Sensex may appear to be high, metrics are very different than those seen in On the valuation front, the market aggregates in our view do not reflect anything. The dichotomy of divergence in valuation of stocks remains. There are few select large cap stocks, which are trading at very premium valuations; these are the ones that have gone up on account of seeing the bulk of FII interest. We believe, the market excluding these stocks is trading at reasonably cheap valuations. Hence, there lies a potential opportunity. On account of political (pre-election year) and global economic reasons, the equity markets are likely to remain volatile. Recommendation Investors across the world and in India have been underweight on equities for a long period of time. In our view, we are in a situation where people should consider investing in equities and there is a challenge because investors are mostly under-invested in equities. We believe that the current volatile environment with weak domestic economic indicators is a good time to invest in equities, especially when FIIs are selling in huge numbers. We recommend investors to invest gradually through / STPs over next one year in our core equity offerings (ICICI Prudential Focused Bluechip Equity Fund, ICICI Prudential Discovery Fund, ICICI Prudential Top 100 and ICICI Prudential Balanced Fund). We recommend lump-sum investments in products, which intend to benefit out of volatility, like ICICI Prudential Equity - Volatility Advantage Fund and ICICI Prudential Dynamic Plan. Investors can also seek to benefit from investing in ICICI Prudential US Bluechip Equity Fund and participate in the growth prospects of the world s largest economy. Note : None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the Investors are requested to consult their financial advisors before investing. 2

3 The Market O v e r v i e w Equity Market Outlook Technicals (Data Source : Bloomberg) Investments by Institutions in the cash segment (Rs. Cr) FIIs (Net Purchases / Sales) MFs (Net Purchases / Sales) April-13 to June-13 Jan-13 to Mar ,050 (5,200) (7,645) Avg Daily Open Interest (Rs. Cr) Index Futures ,163 Stock Futures ,520 Index Options ,758 Stock Options ,269 Total ,38,710 Avg Daily Volumes (Rs. Cr) Cash Segment BSE ,220 NSE ,788 Total ,009 Derivative Segment NSE Total ,40,553 Avg Advance Decline Ratio BSE NSE Valuation Ratios Jun-13 Mar-13 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 % Qtr change % Qtr change June - 13 Mar - 13 S&P BSE Sensex 2.82% -3.04% CNX Nifty Index 2.42% -3.77% S&P BSE BSE Mid Cap -4.12% % S&P BSE BSE Small Cap -4.96% % S&P BSE BSE Realty % % S&P BSE BSE Metals % % S&P BSE BSE Consumer % -8.09% Durables S&P BSE BSE Capital -0.63% % Goods S&P BSE Bankex 1.09% -9.14% S&P BSE BSE PSU -5.30% % S&P BSE BSE Auto 8.03% % S&P BSE BSE Oil & Gas 6.44% -2.25% S&P BSE BSE Teck Index -6.17% 13.80% S&P BSE BSE Healthcare 9.40% -1.53% S&P BSE BSE FMCG 9.15% 0.05% ATTRACTIVE 11x -12x STRETCHED 19x plus CHEAP 8x -10x Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 Jun-13 Sensex(RHS) FAIR VALUE PLUS 16x -18x FAIR 13x -15x Valuations(LHS) Valuations levels of the Sensex based on earnings estimate of Rs.1412 (4 Quarter Forward)

4 The Market O v e r v i e w Impact on Interest Rates FACTORS Short Term Medium Term (1-3 Months) (3-6 Months) Inflation POSITIVE POSITIVE India s headline Wholesale Price Index (WPI) inflation slowed for the fourth straight month in May 2013 to 4.7% (provisional) compared with 4.89% (provisional) in April 2013 and 7.55% during the corresponding month of the previous year. The reading for March 2013 was revised to 5.65% from 5.96% reported previously. Non-food articles saw a sharp decline in inflation to 4.88% from 7.59% in April 13. However, food inflation rose to 8.25% in May 13 from 6.08% in April 13. On the retail front, Consumer Price Index (CPI) came at 9.31% in May 13 compared with 9.39% in April 13. Reserve Bank of India s (RBI) key concern has been the high food inflation, which has not been declining in line with the non-food and WPI inflation. The food inflation, which remained high, made RBI to hold rates in its Mid-Quarter Monetary Policy; the inflation outlook will be influenced by concerted efforts to break food inflation persistence according to the RBI Governor. The central bank also said that only a durable easing of inflation will prompt it to further ease interest rates. (Data Source: Office of Economic Adviser) Money Supply NEUTRAL NEUTRAL Inter-bank call money rates hovered mostly in the range of % for June 13 with rates retreating especially in the latter half of the month amidst comfortable liquidity in the banking system. Liquidity situation had improved following inflows on account of payment of oil subsidy by the government, redemption of state loans and interest payment for government bonds. However, some intermittent spike in rates was witnessed due to higher demand from banks to meet their reserve requirement. RBI conducted Open Market Operations (OMOs) to purchase gilts worth Rs. 7,000 crore in the first week of the month. (Source: India s M3 money supply rose 12.2% year-on-year (y-o-y) in the fortnight ended June 14, 2013, compared to 14.4% a year earlier. Reserve money rose 5.6% y-o-y in the week to June 21, 2013 compared to 7.2% a year earlier. The currency in circulation rose to 9.1% y-o-y in the week to June 21, 2013 compared to 13.8% a year earlier. Banks net average borrowings from the central bank s Liquidity Adjustment Facility (LAF) stood much lower at Rs. 63,784 crore in June 13 as compared to the previous month s figure of Rs. 97,280 crore. A fall in banks average borrowings suggested improvement in liquidity condition in the banking system. (Source: Credit Demand NEUTRAL NEUTRAL Banks credit and deposit growth fell in the fortnight ending June 14, 2013, slipping below the RBI s indicative projections for Bank credit rose 13.7% y-o-y for the fortnight ended June 14, 2013 lower than 14.6% recorded for the same fortnight in May 13; deposit growth stood at 13.6% for the fortnight ended June 14, 2013 higher than 13.4% for the same fortnight in May 13. However, the above growth numbers were below 15% credit and 14% deposit growth projected by RBI for the current financial year. Non-food bank credit stood at Rs lakh crore for the week ended June 14, 2013, compared to Rs lakh crore as of May 17, During the similar period, time deposit growth remained flat at 14.0% y-o-y from 13.9%, while demand deposits grew by 9.6% against 8.2% growth. (Source: www. rbi.org.in) Government Borrowings NEUTRAL NEUTRAL As per the Union budget estimates for FY14, the government is planning to borrow Rs 5.79 lakh crore (gross) and Rs 4.84 lakh crore (net), higher than Rs 5.70 lakh crore (gross) and Rs 4.67 lakh crore (net) for FY13. For FY14, the government has also made provision of Rs 1.45 lakh crore towards repayment of market loans, including Rs 50,000 crore for buyback/switching operations during The government has auctioned gilts worth Rs 1.65 lakh crore in the current fiscal until June 2013, which amounts to 29% of the total gross borrowing amount of Rs 5.79 lakh crore. (Data Source: Reuters) Foreign Exchange NEGATIVE POSITIVE Indian rupee depreciated sharply by 5% in June 13 to close at Rs per USD on June 28, 2013 (off its record low of Rs per US dollar (USD) reached on June 26, 2013) compared with Rs per USD on May 31, Along with other emerging currencies, the rupee too fell against the USD after the US Fed indicated plans to withdraw its monetary stimulus in the coming months. Sentiments took a beating since USD inflows generated Fixed Income Market Outlook through the resultant excess liquidity could dry up due to winding up of US s asset purchase programme. Strength in US dollar was also led by positive US job data and S&P reaffirming its AA+ credit rating with stable outlook for the US. Dollar demand from oil importers and weakness in the local stock market further dragged down the rupee. RBI Policy NEUTRAL POSITIVE RBI kept the repo rate unchanged at 7.25% in its mid-quarter monetary policy review on June 17, Consequently, the reverse repo rate remained unchanged at 6.25%, the Marginal Standing Facility (MSF) rate and the bank rate at 8.25%. RBI also left the Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4% of their net demand and time liabilities. The central bank said that the fall in the rupee, external sector risks and elevated food inflation are the areas of concern. Though, RBI expects the Current Account Deficit (CAD) to moderate in from its previous year s level due to softer global commodity prices and recent measures to dampen gold imports. In its guidance, the RBI said that balance of payments, inflation and growth rate would determine the central bank s future monetary stance. It also added that durable receding of inflation will open space for monetary policy action. (Data Source : Market Sentiment Longer Term Rates Indian government bond prices fell sharply in June 13 as a decline in the rupee against the US dollar wiped off hopes of a cut in the RBI s repo rate at the next policy review on July 30, 2013; a weak rupee negatively impacts India s high CAD, thereby delaying rate cuts. Bonds were also down as US treasury yields spiked after the US Federal Reserve Chairman, Ben Bernanke said that the US central bank may scale back its bond purchase programme later this year. These comments exacerbated Foreign Institutional Investors outflows (FII) from Indian debt markets, thereby pulling down prices further. The yield on the 10-year benchmark paper 7.16%, 2023 hardened by 20 basis points to end at 7.44% on June as against 7.24% on May A further decline in bond prices was, however, capped on intermittent value buying, recovery of rupee from its record lowlevel and following lower-than-expected WPI inflation and trade deficit numbers for May. (Data Source: Reuters) Short-Term Rates Short-term rates cooled during June 13 due to comfortable liquidity condition in the banking system as evident from subdued borrowings by banks from RBI s repo tender. The 3-month Certificate of Deposit ended lower at 7.86% on June 28, 2013 as compared with 8.13% on May 31, 2013, while the 3-month Commercial Papers ended at 8.36% on June 28, 2013 as compared with 8.48% on May 31, (Data Source: FIMMDA) Outlook RBI may wait till post second half of Fiscal Year 2014 to initiate rate cuts again until the rupee stabilises. Inflation is likely to be benign and expected to close the fiscal at 5.5% while bond yields may harden temporarily but decline over the next months as the rupee stabilizes and current account deficit declines. Duration products are likely to do well over this period, as post retraction of bond yields further downside, risks seems limited. This creates a potential opportunity of reasonable risk adjusted returns even in long duration products. RBI in its next monetary policy is expected to keep its rates unchanged due to sharp fall of INR and due to heightened global uncertainty on account of Fed announcement to withdraw its stimulus program over the medium term. With the key economic indicators expected to continue the declining trend, along with rupee stabilizing in the coming months should restore comfort with RBI. And, hence we expect the rate cut cycle to resume in H2 FY2013. Product Recommendations We believe current market conditions are likely to benefit investments in duration funds like Income & Gilt Funds with 24 months and above indicative horizon. Investors can also seek to benefit from reasonable risk adjusted returns from investments in ICICI Prudential Regular Savings Fund, ICICI Prudential Corporate Bond Fund and ICICI Prudential Short Term Plan. For investors who are looking for a balance between reasonable accrual and capital appreciation can consider to invest in ICICI Prudential Dynamic Bond Fund with an indicative investment horizon of 12 months and above. Also investors with an indicative horizon of 1-3 months may consider ICICI Prudential Ultra Short Term Plan. Note : None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the Investors are requested to consult their financial advisors before investing. 4

5 INDEX Fund Name Brief Description Page No. ICICI Prudential Dynamic Plan Conservative Flexi-cap Opportunities Fund 6 ICICI Prudential Focused Bluechip Equity Fund Focused Large Cap Fund 7 ICICI Prudential Discovery Fund Diversified Value Style Investing Fund 8 ICICI Prudential Infrastructure Fund Thematic Fund encompassing Infrastructure 9 ICICI Prudential Tax Plan Open Ended Equity Linked Savings Scheme 10 ICICI Prudential Top 100 Fund Diversified Large Cap Oriented Fund 11 ICICI Prudential Top 200 Fund Blend of Large & Mid Cap Equity 12 ICICI Prudential US Bluechip Equity Fund International Equity Scheme investing in Companies listed on the US Stock 13 Markets ICICI Prudential Indo Asia Equity Fund Blend of Indian & Asian Equities (through an International Fund) Fund 14 ICICI Prudential Midcap Fund Diversified Mid-Cap Oriented Fund 15 ICICI Prudential Target Returns Fund (Open Ended Diversified Equity Fund. There is no guarantee or assurance of returns.) Large Cap Oriented Fund based on Asset Allocation Trigger 16 ICICI Prudential Services Industries Fund Services Industry Oriented Thematic Fund 17 ICICI Prudential Banking & Financial Services Fund Banking & Financial Services Sector Oriented Fund 18 ICICI Prudential Technology Fund Technology Sector Oriented Fund 19 ICICI Prudential FMCG Fund FMCG Sector Oriented Fund 20 ICICI Prudential Child Care Plan (Gift) Diversified Very Long Term Child Benefit Oriented Plan 21 ICICI Prudential Index Fund Nifty Index Fund 22 ICICI Prudential Nifty Junior Index Fund Index Fund 23 SENSEX Prudential ICICI Exchange Traded Fund Exchange Traded Sensex Fund 24 ICICI Prudential Nifty ETF Exchange Traded Nifty Fund 25 ICICI Prudential R.I.G.H.T (Rewards of investing & Closed Ended ELSS generation of healthy tax savings) Fund 26 ICICI Prudential Blended Plan - Plan A Equity Arbitrage Fund 27 ICICI Prudential Equity - Volatility Advantage Fund (Erstwhile ICICI Prudential Equity & Derivatives Fund Volatility Volatility Management Equity Oriented Fund 28 Advantage Plan) ICICI Prudential Equity - Arbitrage Fund (Erstwhile ICICI Equity Arbitrage Fund Prudential Equity & Derivatives Fund Income Optimiser Plan) 29 ICICI Prudential Balanced Fund Balanced Fund 30 ICICI Prudential Child Care Plan (Study) Child Benefit Oriented Plan 31 ICICI Prudential MIP 25 (An open ended Income fund. Monthly income is not assured and is subject to the availability Hybrid Fund with maximum 30% in Equity 32 of distributable surplus.) ICICI Prudential Monthly Income Plan (An open ended fund. Monthly income is not assured and is subject to the availability Hybrid Fund with maximum 15% in Equity 33 of distributable surplus.) ICICI Prudential MIP 5 (An open ended fund. Monthly income is not assured and is subject to the availability of distributable Hybrid Fund with maximum 10% in Equity 34 surplus.) ICICI Prudential Money Market Fund Open Ended Money Market Fund 35 ICICI Prudential Liquid Plan Open Ended Money Market Fund 36 ICICI Prudential Flexible Income Plan Conservative Ultra Short Term Income Fund 37 ICICI Prudential Floating Rate Plan Ultra Short Term Income Fund 38 ICICI Prudential Blended Plan - Plan B Debt Oriented Fund 39 ICICI Prudential Banking & PSU Debt Fund Ultra Short Term Income Fund predominantly investing in Banking & PSU Debt 40 ICICI Prudential Ultra Short Term Plan Aggressive Ultra Short Term Income Fund 41 ICICI Prudential Short Term Plan Short Term Income Fund 42 ICICI Prudential Long Term Plan Short Term Income Fund 43 ICICI Prudential Regular Savings Fund Retail Debt Savings Fund 44 ICICI Prudential Corporate Bond Fund Medium Term Income Fund 45 ICICI Prudential Income Opportunities Fund Long Term Income Fund 46 ICICI Prudential Income Plan Long Term Income Fund 47 ICICI Prudential Dynamic Bond Fund Actively Managed Medium Term Income Fund 48 ICICI Prudential Gilt Fund Treasury Plan Short Term Gilt Fund 49 ICICI Prudential Gilt Fund Investment Plan Medium to Long Term Gilt Fund 50 ICICI Prudential Gilt Fund Treasury Plan PF Option Short Term Gilt Fund 51 ICICI Prudential Gilt Fund Investment Plan PF Option Medium to Long Term Gilt Fund 52 ICICI Prudential Gold Exchange Traded Fund Gold Exchange Traded Fund 53 ICICI Prudential Regular Gold Savings Fund Open Ended Fund of Funds Scheme investing in Gold ETF 54 ICICI Prudential Fixed Maturity Plans Fixed Maturity Plans ICICI Prudential Interval Funds Interval Funds ICICI Prudential Multiple Yield Fund Close ended Debt Fund ICICI Prudential Capital Protection Oriented Fund Close ended Capital Protection Oriented Fund ICICI Prudential Advisor Series Fund of Funds Scheme Annexure for Returns of all the Schemes Systematic Investment Plan () Performance of Select Schemes Annexure - I 105 Annexure - II 106 Dividend History for all Schemes Statutory Details & Risk Factors 115 5

6 ICICI Prudential Dynamic Plan Open Ended Diversified Equity Fund Long term wealth creation solution A diversified equity fund that aims for growth by investing in equity and equity related securities and in debt and money market instruments for defensive considerations. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH RISK (BROWN) Style Box Returns of Regular Plan - Growth Option as on Jun 30, 2013 Particulars June 30, 2012 to June 30, 2013 June 30, 2011 to June 30, 2012 June 30, 2010 to June 30, 2011 Since inception Absolute Returns (%) Absolute Returns (%) Absolute Returns (%) Current Value of Investment of Rs CAGR (%) Fund Details Fund Managers** : Sankaran Naren (Managing this fund since Feb, 2012 & Overall 22 years of experience in Fund Management, Equity Research,Operations etc.) Mittul Kalawadia (Managing this fund since Feb, 2012 & Overall 7 years of experience of which 4 years as equity analyst) Indicative Investment Horizon: 5 years and above Inception date: AAUM as on 30-Jun-13 : Rs crores Regular Plan Growth Option : Regular Plan Dividend Option : Direct Plan Growth Option : Direct Plan Dividend Option : Plans : Regular & Direct Options : Growth & Dividend Default Plan: Direct Plan (for application without any distributor code), Regular Plan (for application with distributor code). Default Option : Growth Application Amount for fresh Subscription : Rs.5,000 (plus in multiples of Re.1) Min.Addl.Investment : Rs.1,000 (plus in multiples of Re.1) Exit load for Redemption / Switch out :- Lumpsum & / STP / SWP Investment Option Upto 12 Months from allotment - 1% of applicable NAV, more than 12 Months - Nil (w.e.f May 07, 2013) : Monthly: Minimum Rs. 1,000/- plus 5 post dated cheques for a minimum of Rs. 1,000/- each; Quarterly: Minimum Rs. 5,000/- plus 3 post dated cheques of Rs. 5,000/- each. SWP : Minimum of Rs.500 and multiples of Re1/- STP : STP In : Available Min.Redemption Amt. : Rs.500 & in multiples thereof Scheme CNX NIFTY Index NAV (Rs.) Per Unit (as on June 28,2013 : ) Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Date of inception:31-oct-02. Performance of dividend option would be Net of Dividend distribution tax, if any. Benchmark is CNX NIFTY Index. For computation of since inception returns (%) the allotment NAV has been taken as Rs Load is not considered for computation of returns. In case, the start/end date of the concerned period is a nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period. Total Schemes managed by Mr. Sankaran Naren is 2 and Mr. Mittul Kalawadia is 2. Refer annexure on page no. 99 for performance of schemes currently managed by fund managers. Company/Issuer % to % to NAV NAV Derivatives Auto 2.49% -1.72% Tata Motors Ltd. - DVR 1.11% Tata Motors Ltd.-Futures -1.72% Bajaj Auto Ltd 1.10% Maruti Suzuki India Ltd. 0.28% Auto Ancillaries 1.42% Balkrishna Industries Ltd. 0.90% Motherson Sumi Systems Ltd. 0.52% Banks 14.94% ICICI Bank Ltd. 4.94% Standard Chartered PLC - IDR 4.14% Bank Of Baroda 2.99% State Bank Of India 2.16% Union Bank Of India 0.42% Allahabad Bank 0.29% Cement 1.75% Grasim Industries Ltd. 1.03% Birla Corporation Ltd. 0.72% Construction 1.42% Jaiprakash Associates Ltd. 0.76% Puravankara Projects Ltd. 0.44% Texmaco Infrastructure & Holdings Ltd. 0.22% Consumer Durables 0.41% Titan Industries Ltd. 0.33% Blue Star Ltd. 0.08% Consumer Non Durables 1.32% Hindustan Unilever Ltd. 1.32% Ferrous Metals 0.96% Tata Steel Ltd. 0.50% Usha Martin Ltd. 0.23% Jindal Steel & Power Ltd. 0.23% Fertilisers 1.14% Coromandel International Ltd. 0.86% Gujarat Narmada Valley Fertilizers & Chemicals Ltd. 0.28% Finance 1.07% Max India Ltd. 0.52% Power Finance Corporation Ltd. 0.35% Kalyani Investment Co Ltd 0.21% Gas 2.02% Petronet LNG Ltd. 1.88% Gujarat State Petronet Ltd. 0.14% Hotels 0.10% Mahindra Holidays & Resorts India Ltd. 0.10% Industrial Capital Goods 0.57% Texmaco Rail & Engineering Ltd. 0.44% Gujarat Apollo Inds. Ltd. 0.13% Industrial Products 0.26% Sintex Industries Ltd. 0.15% Electrosteel Castings Ltd. 0.11% Media & Entertainment 0.85% Prime Focus Ltd. 0.46% Jagran Prakashan Ltd. 0.39% Minerals/Mining 7.45% NMDC Ltd 6.08% Portfolio as on June 30,2013 Company/Issuer % to % to NAV NAV Derivatives Coal India Ltd. 1.37% Non - Ferrous Metals 2.59% Sterlite Industries (India) Ltd. 2.58% Hindustan Zinc Ltd. 0.02% Oil 10.75% Cairn India Ltd % Pesticides 2.37% United Phosphorus Ltd. 2.37% Petroleum Products 2.58% Reliance Industries Ltd. 2.15% Bharat Petroleum Corporation Ltd. 0.43% Pharmaceuticals 6.98% Cadila Healthcare Ltd. 2.24% Dr Reddy s Laboratories Ltd. 1.86% Cipla Ltd. 1.62% Divis Laboratories Ltd. 0.82% Ranbaxy Laboratories Ltd. 0.44% Power 6.40% Power Grid Corporation Of India Ltd. 4.84% SJVN Ltd. 1.04% Kalpataru Power Transmission Ltd. 0.40% NTPC Ltd. 0.12% Services 2.70% Aditya Birla Nuvo Ltd. 2.70% Software 10.56% Infosys Ltd. 5.39% Tech Mahindra Ltd. 1.84% Mahindra Satyam Ltd 1.66% Hexaware Technologies Ltd. 1.04% Mindtree Ltd 0.32% Oracle Financial Services Software Ltd 0.30% Telecom - Services 5.64% Bharti Airtel Ltd. 4.86% Tata Communications Ltd 0.78% Textile Products 0.21% Siyaram Silk Mills Ltd. 0.21% Textiles - Cotton 0.82% Vardhman Textiles Ltd. 0.82% Textiles - Synthetic 0.54% JBF Industries Ltd. 0.54% Trading 0.52% Redington (India) Ltd. 0.52% Transportation 1.61% Great Eastern Shipping Company Ltd. 1.54% ABG Infralogitics Ltd. 0.07% Index Futures/Options -2.49% CNX Nifty Index-Futures -2.49% Short Term Debt and other current assets 10.38% FOREIGN EQUITY 1.35% Banks 1.35% Standard Chartered PLC - IDR 1.35% Total Net Assets % Top Ten Holdings Derivatives are considered at exposure value. Quantitative Indicators Average P/E : Average P/BV : 2.62 Average Dividend Yield : 2.34 Annual Portfolio Turnover Ratio : 1.24 times Std Dev (Annualised) : 15.84% Sharpe Ratio : Portfolio Beta : 0.79 R squared : 0.91 Portfolio turnover has been computed as the ratio of the lower 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 91-day T-Bill cut-off of %. **In addition to the fund manager managing this fund, the ADR/GDR exposure is managed by Mr. Atul Patel. 6

7 ICICI Prudential Focused Bluechip Equity Fund Open Ended Equity Scheme Long term wealth creation solution A focused large cap equity fund that aims for growth by investing in companies belonging to large cap domain. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Style Box Returns of Regular Plan - Growth Option as on Jun 30, 2013 HIGH RISK (BROWN) Particulars June 30, 2012 to June 30, 2013 June 30, 2011 to June 30, 2012 June 30, 2010 to June 30, 2011 Since inception Absolute Returns (%) Absolute Returns (%) Absolute Returns (%) Current Value of Investment of Rs CAGR (%) Fund Details Fund Managers** : Manish Gunwani (Managing this fund from Jan 2012 & Overall 16 years of experience of which 8 years in Equity Research and 2 years in fund management) Indicative Investment Horizon: 5 years and above Inception date: AAUM as on 30-Jun-13: Rs crores Regular Plan Growth Option : Regular Plan Dividend Option : Direct Plan Growth Option : Direct Plan Dividend Option : Plans : Regular & Direct Options : Growth & Dividend Default Plan: Direct Plan (for application without any distributor code), Regular Plan (for application with distributor code). Default Option : Growth Application Amount for fresh Subscription : Rs.5,000 (plus in multiples of Re.1) Min.Addl.Investment : Rs.1,000 (plus in multiples of Re.1) Exit load for Redemption / Switch out :- Lumpsum & / STP / SWP Investment Option Upto 1 Year from allotment - 1% of applicable NAV, more than 1 Year - Nil : Monthly: Minimum Rs. 1,000/- plus 5 post dated cheques for a minimum of Rs. 1,000/- each; Quarterly: Minimum Rs. 5,000/- plus 3 post dated cheques of Rs. 5,000/- each. SWP : Rs.500 and in multiples of Re. 1/- STP : STP In : Available Min.Redemption Amt. : Rs. 500 and in multiples of Re. 1/- Scheme CNX NIFTY Index NAV (Rs.) Per Unit (as on June 28,2013 : 18.01) Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Date of inception: 23-May-08. Performance of dividend option would be Net of Dividend distribution tax, if any.benchmark is CNX NIFTY Index. For computation of since inception returns (%) the allotment NAV has been taken as Rs Load is not considered for computation of returns. In case, the start/end date of the concerned period is a nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period. Total Schemes managed by the Fund Manager is 4. Refer annexure on page no. 99 for performance of schemes currently managed by Mr. Manish Gunwani (fund manager). Company/Issuer % to % to NAV NAV Derivatives Auto 6.54% Tata Motors Ltd. - DVR 2.36% Bajaj Auto Ltd 2.22% Maruti Suzuki India Ltd. 1.96% Auto Ancillaries 4.48% Motherson Sumi Systems Ltd. 4.48% Banks 26.27% HDFC Bank Ltd. 8.98% ICICI Bank Ltd. 7.55% Kotak Mahindra Bank Ltd. 5.82% State Bank Of India 3.92% Cement 1.95% Grasim Industries Ltd. 1.95% Construction 0.74% Jaiprakash Associates Ltd. 0.74% Construction Project 1.36% Larsen & Toubro Ltd. 1.36% Consumer Non Durables 9.51% -0.71% ITC Ltd. 6.67% ITC Ltd.-Futures 0.11% Nestle India Ltd. 2.02% United Spirits Ltd. 0.82% United Spirits Ltd.-Futures -0.83% Finance 1.03% Mahindra & Mahindra Financial Serv Ltd. 1.03% Gas 2.55% Petronet LNG Ltd. 2.55% Minerals/Mining 1.64% NMDC Ltd 1.64% Non - Ferrous Metals 2.35% Hindustan Zinc Ltd. 2.35% Oil 5.15% Cairn India Ltd. 2.79% Oil & Natural Gas Corporation Ltd. 2.36% Petroleum Products 5.14% Portfolio as on June 30,2013 Company/Issuer % to % to NAV NAV Derivatives Reliance Industries Ltd. 3.50% Hindustan Petroleum Corporation Ltd. 1.64% Pharmaceuticals 6.68% Dr Reddy s Laboratories Ltd. 2.91% Cipla Ltd. 1.98% Lupin Ltd. 1.79% Power 2.71% Power Grid Corporation Of India Ltd. 2.71% Services 3.12% Aditya Birla Nuvo Ltd. 3.12% Software 12.39% Infosys Ltd. 5.22% Tech Mahindra Ltd. 4.09% Oracle Financial Services Software Ltd 1.70% HCL Technologies Ltd. 1.38% Telecom - Services 2.27% Bharti Airtel Ltd. 2.27% Short Term Debt and other current assets 4.84% Total Net Assets % Top Ten Holdings Derivatives are considered at exposure value. Quantitative Indicators Average P/E : Average P/BV : 3.90 Average Dividend Yield : 1.43 Annual Portfolio Turnover Ratio : 0.78 times Std Dev (Annualised) : 16.80% Sharpe Ratio : 0.04 Portfolio Beta : 0.87 R squared : 0.97 Portfolio turnover has been computed as the ratio of the lower 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 91-day T-Bill cut-off of %. **In addition to the fund manager managing this fund, the ADR/GDR exposure is managed by Mr. Atul Patel. 7

8 ICICI Prudential Discovery Fund Open Ended Diversified Equity Scheme Long term wealth creation solution A diversified equity fund that aims to generate returns through a combination of dividend income and capital appreciation by primarily investing in value stocks. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Style Box Returns of Regular Plan - Growth Option as on Jun 30, 2013 HIGH RISK (BROWN) Fund Details Fund Managers** : Mrinal Singh (Managing this fund since Feb 2011 & Overall 11 years experience of which 5 years in Equity Markets) Indicative Investment Horizon: 5 years and above Inception date: AAUM as on 30-Jun-13: Rs crores Regular Plan Growth Option : Regular Plan Dividend Option : Direct Plan Growth Option : Direct Plan Dividend Option : Plans : Regular & Direct Options : Growth & Dividend Default Plan: Direct Plan (for application without any distributor code), Regular Plan (for application with distributor code). Default Option : Growth Application Amount for fresh Subscription : Rs.5,000 (plus in multiples of Re.1) Min.Addl.Investment : Rs.1,000 (plus in multiples of Re.1) Exit load for Redemption / Switch out :- Lumpsum & / STP / SWP Investment Option Upto 12 Months from allotment - 1% of applicable NAV, more than 12 Months - Nil (w.e.f May 07, 2013) : Monthly: Minimum Rs. 1,000/- plus 5 post dated cheques for a minimum of Rs. 1,000/- each; Quarterly: Minimum Rs. 5,000/- plus 3 post dated cheques of Rs. 5,000/- each. SWP : Minimum of Rs.500 and multiples of Re.1/- STP : STP In : Available Min.Redemption Amt. : Rs.500 & in multiples thereof Particulars June 30, 2012 to June 30, 2013 Absolute Returns (%) June 30, 2011 to June 30, 2012 Absolute Returns (%) June 30, 2010 to June 30, 2011 Absolute Returns (%) Since inception Current Value of Investment of Rs Scheme Benchmark CNX NIFTY Index NAV (Rs.) Per Unit (as on June 28,2013 : 51.23) Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Date of inception:16-aug-04. Performance of dividend option would be Net of Dividend distribution tax, if any. Benchmark is CNX Midcap Index. For computation of since inception returns (%) the allotment NAV has been taken as Rs Load is not considered for computation of returns. In case, the start/end date of the concerned period is a nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period. Total Schemes managed by the Fund Manager is 4 (Includes FoF Schemes). Refer annexure on page no. 99 for performance of schemes currently managed by Mr. Mrinal Singh (fund manager). Portfolio as on June 30,2013 Company/Issuer % to NAV Company/Issuer % to NAV Auto Ancillaries 7.45% Amara Raja Batteries Ltd. 3.26% Exide Industries Ltd. 2.55% Balkrishna Industries Ltd. 1.64% Banks 13.07% ICICI Bank Ltd. 2.89% ING Vysya Bank Ltd. 2.32% State Bank Of India 2.30% Allahabad Bank 2.14% Karur Vysya Bank Ltd. 1.67% Union Bank Of India 1.00% City Union Bank Ltd. 0.59% City Union Bank Ltd. - Rights 0.16% Cement 3.14% Birla Corporation Ltd. 0.97% Prism Cement Ltd. 0.84% Orient Cement Ltd. 0.84% India Cements Ltd. 0.49% Chemicals 1.95% Rain Commodities Ltd. 1.95% Construction 0.11% BL Kashyap & Sons Ltd. 0.11% Construction Project 3.08% Sadbhav Engineering Ltd. 1.64% Voltas Ltd. 1.44% Consumer Durables 1.05% Blue Star Ltd. 1.05% Consumer Non Durables 0.90% Balrampur Chini Mills Ltd. 0.90% Diversified Consumer Services 0.27% Career Point Infosystems Ltd 0.27% Ferrous Metals 4.25% Jindal Steel & Power Ltd. 3.04% Usha Martin Ltd. 0.65% Godawari Power & Ispat Ltd. 0.55% Fertilisers 0.29% Gujarat Narmada Valley Fertilizers & Chemicals Ltd. 0.29% Finance 4.26% Max India Ltd. 2.31% Bajaj Holdings & Investment Ltd 1.91% Kalyani Investment Co Ltd 0.03% Power Finance Corporation Ltd. ^ Gas 5.70% GAIL (India) Ltd. 3.09% Petronet LNG Ltd. 1.71% Gujarat State Petronet Ltd. 0.90% Industrial Capital Goods 3.31% Bharat Heavy Electricals Ltd. 2.02% Voltamp Transformers Ltd. 0.60% Texmaco Rail & Engineering Ltd. 0.41% Elecon Engineering Company Ltd. 0.28% Quantitative Indicators Average P/E : Average P/BV : 1.87 Average Dividend Yield : 2.27 Annual Portfolio Turnover Ratio : 0.48 times Std Dev (Annualised) : 17.34% Sharpe Ratio : Portfolio Beta : 0.75 R squared : 0.88 Portfolio turnover has been computed as the ratio of the lower 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 91-day T-Bill cut-off of %. **In addition to the fund manager managing this fund, the ADR/GDR exposure is managed by Mr. Atul Patel. CAGR (%) Industrial Products 2.30% Bharat Forge Ltd. 1.09% Timken India Ltd. 0.60% Sintex Industries Ltd. 0.46% MM Forgings Ltd. 0.16% Minerals/Mining 2.07% NMDC Ltd 2.07% Non - Ferrous Metals 3.15% Sterlite Industries (India) Ltd. 3.15% Oil 2.04% Cairn India Ltd. 2.04% Paper 0.58% Tamil Nadu Newsprint & Papers Ltd. 0.37% Ballarpur Industries Ltd. 0.20% Pesticides 3.81% PI Industries Ltd. 2.07% United Phosphorus Ltd. 1.73% Petroleum Products 2.92% Reliance Industries Ltd. 2.37% Hindustan Petroleum Corporation Ltd. 0.32% Indian Oil Corporation Ltd. 0.23% Pharmaceuticals 6.02% Natco Pharma Ltd. 1.75% Piramal Enterprises Ltd. 1.72% Torrent Pharmaceuticals Ltd. 1.56% Aurobindo Pharma Ltd. 0.56% FDC Ltd. 0.43% Power 0.79% Power Grid Corporation Of India Ltd. 0.44% Kalpataru Power Transmission Ltd. 0.35% Software 7.41% Mindtree Ltd 2.47% Oracle Financial Services Software Ltd 1.85% eclerx Services Ltd 1.57% Persistent Systems Ltd. 1.28% Nucleus Software Exports Ltd. 0.25% Telecom - Services 4.20% Bharti Airtel Ltd. 4.20% Textile Products 0.17% Siyaram Silk Mills Ltd. 0.17% Textiles - Cotton 2.33% Vardhman Textiles Ltd. 2.33% Transportation 5.40% Great Eastern Shipping Company Ltd. 2.01% Gujarat Pipavav Port Ltd. 1.84% Container Corporation Of India Ltd. 1.55% Short Term Debt and other current assets 7.98% Total Net Assets % Top Ten Holdings ^Value less than 0.01% 8

9 ICICI Prudential Infrastructure Fund Open Ended Equity Fund Long term wealth creation solution An equity fund that aims for growth by primarily investing in securities of companies belonging to infrastructure and allied sectors. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Fund Details Fund Managers** : Yogesh Bhatt (Managing this fund since Feb, 2012 & Overall 21 years of experience of which 15 years as Equity dealer and 6 years in Fund Management) Indicative Investment Horizon: 5 years and above Inception date: AAUM as on 30-Jun-13: Rs crores Regular Plan Growth Option : Regular Plan Dividend Option : Direct Plan Growth Option : Direct Plan Dividend Option : Plans : Regular & Direct Options : Growth & Dividend Default Plan: Direct Plan (for application without any distributor code), Regular Plan (for application with distributor code). Default Option : Growth Application Amount for fresh Subscription : Rs.5,000 (plus in multiples of Re.1) Min.Addl. Investment : Rs.1,000 (plus in multiples of Re.1) Exit load for Redemption / Switch out :- Lumpsum & / STP / SWP Investment Option Upto 1 Year from allotment - 1% of applicable NAV, more than 1 Year - Nil : Monthly: Minimum Rs. 1,000/- plus 5 post dated cheques for a minimum of Rs. 1,000/- each; Quarterly: Minimum Rs. 5,000/- plus 3 post dated cheques of Rs. 5,000/- each. SWP : Minimum of Rs.500 and multiples of Re.1/- STP : STP In : Available Style Box Min.Redemption Amt. : Rs.500 & in multiples thereof Particulars Returns of Regular Plan - Growth Option as on Jun 30, 2013 June 30, 2012 to June 30, 2013 Absolute Returns (%) June 30, 2011 to June 30, 2012 June 30, 2010 to June 30, 2011 Absolute Returns (%) Absolute Returns (%) Current Value of Investment of Rs Since inception HIGH RISK (BROWN) CAGR (%) Scheme Benchmark CNX NIFTY Index NAV (Rs.) Per Unit (as on June 28,2013 : 23.62) Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Date of inception:31-aug-05. Performance of dividend option would be Net of Dividend distribution tax, if any. Benchmark is CNX Infrastructure Index. For computation of since inception returns (%) the allotment NAV has been taken as Rs Load is not considered for computation of returns. In case, the start/end date of the concerned period is a nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period. Total Schemes managed by the Fund Manager is 6. Refer annexure on page no. 99 for performance of schemes currently managed by Mr. Yogesh Bhatt (fund manager). Company/Issuer % to % to NAV NAV Derivatives Banks 21.46% State Bank Of India 6.35% ICICI Bank Ltd. 6.31% HDFC Bank Ltd. 5.33% ING Vysya Bank Ltd. 1.90% Bank Of Baroda 1.56% Cement 4.61% Birla Corporation Ltd. 1.79% Orient Cement Ltd. 1.58% Grasim Industries Ltd. 1.24% Construction 1.76% Jaiprakash Associates Ltd. 1.76% Construction Project 8.23% Larsen & Toubro Ltd. 5.55% Sadbhav Engineering Ltd. 1.51% Voltas Ltd. 0.60% Techno Electric & Engineering Co Ltd. 0.57% Consumer Durables 0.28% Blue Star Ltd. 0.28% Ferrous Metals 1.50% Usha Martin Ltd. 1.24% Electrosteel Steels Ltd. 0.26% Industrial Capital Goods 3.60% 1.88% Crompton Greaves Ltd. 1.34% Texmaco Rail & Engineering Ltd. 1.20% Bharat Heavy Electricals Ltd. 1.07% Bharat Heavy Electricals Ltd.-Futures 1.88% Industrial Products 1.57% Cummins India Ltd. 1.30% Electrosteel Castings Ltd. 0.28% Minerals/Mining 4.11% NMDC Ltd 4.11% Non - Ferrous Metals 6.45% Sterlite Industries (India) Ltd. 3.52% Portfolio as on June 30,2013 Company/Issuer % to % to NAV NAV Derivatives Hindustan Zinc Ltd. 2.93% Oil 5.87% Cairn India Ltd. 2.45% Oil India Ltd 1.98% Oil & Natural Gas Corporation Ltd. 1.44% Petroleum Products 5.65% Reliance Industries Ltd. 3.52% Hindustan Petroleum Corporation Ltd. 2.13% Power 14.17% NTPC Ltd. 3.72% Tata Power Company Ltd. 3.45% SJVN Ltd. 3.36% Kalpataru Power Transmission Ltd. 2.35% Power Grid Corporation Of India Ltd. 1.30% Telecom - Services 9.98% Bharti Airtel Ltd. 9.98% Transportation 6.41% Great Eastern Shipping Company Ltd. 2.48% Gujarat Pipavav Port Ltd. 1.97% Adani Ports and Special Economic Zone Ltd. 1.15% Container Corporation Of India Ltd. 0.81% Short Term Debt and other current assets 2.46% Total Net Assets % Top Ten Holdings Derivatives are considered at exposure value. Quantitative Indicators Average P/E : Average P/BV : 1.67 Average Dividend Yield : 2.16 Annual Portfolio Turnover Ratio : 0.41 times Std Dev (Annualised) : 19.69% Sharpe Ratio : Portfolio Beta : 0.73 R squared : 0.91 Portfolio turnover has been computed as the ratio of the lower 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 91-day T-Bill cut-off of %. **In addition to the fund manager managing this fund, the ADR/GDR exposure is managed by Mr. Atul Patel. 9