EQUITY MARKET OVERVIEW

Transcription

1 SEPTEMBER 2011 EQUITY MARKET OVERVIEW Inflation Check: Headline inflation, based on wholesale prices, stood at 9.22% y/y in July (vs. 9.44% in June).The CPI number, based on consumer prices, remained almost flat at 8.62% y/y in June (vs. 8.72% in May). However, the moderation in inflation is expected to be short-lived and will likely move up in the months ahead, due to the upcoming festival season. The Reserve Bank of India continues to expect inflation to start easing by November/December 2011 and is watching for signs of moderation in demand. Index of industrial production: Industrial output rose by 8.8% y/y in June (vs. 5.9% in May). The growth was primarily driven by capital goods output which rose by 37.7% y/y in June (vs. 6.1% in May), followed by manufacturing output which grew by 10.0% y/y in June (vs. 6.1% in May). 1QFY12 GDP: The real GDP grew by 7.7% in Q1FY12, in line with expectations. With respect to individual sector performance, mining was weak while construction slumped, reflecting the on-going monetary tightening. Healthy growth in agriculture and a robust expansion in services provided a bit of optimism. Consumption, on the other hand, fell below the trend, reflecting the lagged impact of monetary tightening and the slower pace of government spending. Weak Market Performance: The key benchmark indices witnessed downward pressure in the month of August, due to fears of a double dip recession in the US and the worsening Euro debt crisis. In addition expectations of weak corporate earnings growth by Indian companies, along with rising interest rates, impacted sentiments negatively. The unprecedented downgrade of US credit rating by S&P saw the Sensex tumble during the month, in line with the other major global indices, as the markets absorbed the shock of the downgrade. Despite a positive surprise in the IIP output at 8.8% (expected 5.5%) and the US Federal Reserve s decision to keep US interest rates at the current low levels, the

2 key Indian indices trended downwards, in anticipation of further turmoil in the already weak global economy. Market Summary: The major gainers on the Nifty during the month were Hero Motors (up ~10.5%) and Bajaj Auto (up ~7.1). Some of the major losing stocks for the month included Reliance Capital (down ~34.5%), Reliance Power (down ~25.5%), and Reliance Communications (down ~24.4%). With respect to sector specific indices, the major losers were the Realty index (down ~ 17.77%) and the Metal index (down ~ 16.81%). The market will take cues from the advance tax numbers to be declared this month as well as from the RBI s monetary policy this month. Major Indices Monthly Change (%) July 11 - Aug 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 % % % % % % % % % % % % % % % % % % % % % % % % Source : Bloomberg

3 FIXED INCOME OVERVIEW The key event this month was the downgrade of US sovereign debt by S&P, from the coveted AAA to AA+, with an indication of further downgrade in the next 2 years. As there is no asset currently available to match US treasuries in quantum of float and pervasiveness of holdings, the impact of this event was not significant on a standalone basis; it merely served to add to the souring global sentiments. US GDP growth has been consistently falling in the last four quarters, while both Germany and UK have registered growth below 1%, strengthening expectations of a double-dip recession. Though talks of a QE3 started gaining ground, the Federal Reserve has not given any positive indications on the same yet. Given the near-zero interest rate regime targeted by the Fed till 2013, any further quantitative easing is expected to have little impact. Systemic liquidity in India continued to be relatively unchanged, with LAF registering a month-high deficit of Rs.56,750 crores and an average of Rs.38,500 crores, in line with RBI s target ceiling of 1% of NDTL. 3-month Certificates of Deposits (CD s) yields rose and were volatile between 8.85% and 9.30% during the month. Volatility also persisted in the 1-year CD yields which ranged between 9.40% and 9.80%. Yields on the benchmark 10-year G-sec 7.80% 2021 fell from highs of 8.46% and averaged around 8.30%, closing the month at 8.32%. WPI for July marginally cooled to 9.22% (YoY) from 9.44% in June, due to sharp rise in food inflation in line with global trends, and high fuel prices. Weekly food inflation fell further to 9.80% for the week ended August 13, from 7.33% for week ended July 16, due to rise in prices of vegetables due to supply-side bottlenecks. The fuel and power index changed to 12.19% from 12.12%. Primary articles inflation closed at 12.40% v/s 10.49%. India GDP for Q came in at 7.7% YoY (7.8% for Q4 2011), in line with expectations of 7.6%. Agriculture, manufacturing, construction and financial/ real estate services grew at 3.9%, 7.2%, 1.2% and 9.1% respectively. IIP for June (new series) came in at 8.80% YoY from 5.90% (revised from 5.60%) for last month, due to sharp rise in production of capital goods at 37.7%, up from 6.1% last month. 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 30th Aug 2011): Growth: ` Dividend: ` Plans: - 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 30/08/2011 Security Name * Rounded off to the nearest two digits after the decimal point. Scheme Performance as on 30/08/ Year Since Inception (25-Jun-2010) Returns in Returns on investment Returns in Returns on investment CAGR (%) of Rs. 10,000/- (in `) CAGR(%) of Rs. 10,000/-( in `) IDBI Nifty Index Fund - Growth S&P CNX Nifty Index-TRI S&P CNX Nifty Index Source: Accord Fintech Disclaimer: Past Performance may or may not be sustained in the future. Returns pertain to growth plan and are expressed in terms of both compounded annualized growth rate (CAGR) and Rupees(Rs.). The returns in Rs. are point to point returns on a standard investment of Rs.10,000. In addition to IDBI Nifty Index Fund, the fund manager manages seven schemes of IDBI Mutual Fund. However, in compliance to clause 3 & 4 under the title Transparency of Information in the SEBI circular Cir/ IMD/ DF/13/ 2011 dated August 22, 2011, the performances of these schemes are not being published. Dividend History Payout Date % To Net EQUITY Reliance Industries Ltd Infosys Technologies Ltd ITC Ltd ICICI Bank Ltd HDFC Ltd Larsen & Toubro Ltd HDFC Bank Ltd Tata Consultancy Services Ltd State Bank of India Ltd Bharti Airtel Ltd Oil & Natural Gas Corpn Ltd Mahindra & Mahindra Ltd Hindustan Unilever Ltd Tata Steel Ltd Bharat Heavy Electricals Ltd Axis Bank Ltd Tata Motors Ltd NTPC Ltd Bajaj Auto Ltd Jindal Steel & Power Ltd Hero Honda Motors Ltd Hindalco Industries Ltd Dr. Reddy's Laboratories Ltd Gas Authority of India Ltd Sun Pharmaceuticals Industries Ltd Sterlite Industries ( India ) Ltd Dividend (in `) Security Name Cum Dividend NAV* (in `) % To Net Wipro Ltd Tata Power Company Ltd Kotak Mahindra Bank Ltd Maruti Suzuki India Ltd CIPLA Ltd Power Grid Corporation of India Ltd Grasim Industries Ltd Infrastucture Development Finance Co. Ltd Punjab National Bank Ltd Cairn India Ltd HCL Technologies Ltd Ambuja Cements Ltd ACC Ltd Sesa Goa Ltd Bharat Petroleum Ltd Siemens Ltd Ranbaxy Laboratories Ltd DLF Ltd Jaiprakash Associates Ltd Steel Authority of India Ltd Reliance Infrastructure Ltd Reliance Communications Ltd Reliance Power Ltd Reliance Capital Ltd Cash Receivables 0.30 Total Ex Dividend NAV (in `) 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 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 4.22 % 3.90 % 9.35 % % 3.05 % 2.50 % 0.60 % 2.36 % 3.59 % 0.92 % 7.66 % 1.22 % 7.03 % 3.84 % 9.27 % % 1.31 % 0.94 % 5.72 % Auto Banks Cement Construction 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 Textile Products

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 30th Aug 2011): Growth: ` Dividend: ` Plans: - Reinvestment - Payout Asset Allocation Pattern: Instrument Stocks in the CNX Nifty Junior Index and derivative instruments linked to the 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 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/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 30/08/2011 Security Name To Net EQUITY Coal India Ltd Asian Paints Ltd Adani Enterprises Ltd Bank of Baroda Ltd Lupin Ltd UltraTech Cement Ltd Glaxosmithkline Pharmaceuticals Ltd IndusInd Bank Ltd Titan Industries Ltd Shriram Transport Finance Company Ltd United Spirits Ltd JSW Steel Ltd Exide Industries Ltd Mundra Port and Special Economic Zone Ltd Yes Bank 2.20 Zee Entertainment Enterprises Ltd LIC Housing Finance Ltd The Federal Bank Ltd Colgate Palmolive (India) Ltd Hindustan Petroleum Corporation Ltd Canara Bank Ltd Tata Chemicals Ltd Cummins India Ltd Bank of India Ltd Rural Electrification Corporation 1.90 Crompton Greaves Ltd Union Bank of India Ltd Sector Classification Security Name To Net Aditya Birla Nuvo Ltd Power Finance Corporation Ltd United Phosphorus Ltd Glenmark Pharmaceuticals Ltd Container Corporation of India Ltd IDBI Bank Ltd Torrent Power Ltd Bharat Forge Ltd The Indian Hotels Co. Ltd Ashok Leyland Ltd Andhra Bank Ltd GMR Infrastructure Ltd Bharat Electronics Ltd Oracle Financial Services Software Ltd Mphasis Ltd Industrial Finance Corporation Ltd Housing Development and Infrastructure Ltd Tech Mahindra Ltd Indian Overseas Bank Ltd Biocon Ltd Syndicate Bank Ltd 0.59 Punj Lloyd Ltd Patni Computer Systems Ltd Indiabulls Wholesale Services Ltd Cash Receivables 0.56 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 % 1.65 % 7.86 % 8.76 % 2.13 % 2.87 % 1.26 % 3.16 % 2.88 % 1.21 % 4.19 % 9.34 % 3.77 % 1.08 % 2.28 % 1.97 % 2.37 % % % 3.47 % 0.82 % 1.40 % Auto Auto Ancillaries Banks Cement Construction Construction Project Consumer Non Durables Ferrous Metals Fertilisers Finance Hotels Industrial Capital Goods Industrial Products Media & Entertainment Minerals/Mining Pesticides Petroleum Products Pharmaceuticals Power Software Trading Transportation Please refer to IISL disclaimer on page 10 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 31th Aug 2011): Growth ` Daily Dividend ` Weekly Dividend ` Monthly Dividend ` Plans: - 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 31/08/2011 Security Name Rating % To Net CERTIFICATES OF DEPOSITS Allahabad Bank Ltd. A Canara Bank Ltd. P UCO Bank P Punjab National Bank Ltd. PR Axis Bank Ltd. P Central Bank of India PR Corporation Bank P Bank of India Ltd. P Indian Overseas Bank Ltd. A Oriental Bank of Commerce P Kotak Mahindra Bank Ltd. P Vijaya Bank PR Axis Bank Ltd. A HDFC Bank Ltd. PR State Bank of Bikaner & Jaipur P Canara Bank Ltd. A Vijaya Bank P Andhra Bank Ltd. PR Union Bank of India Ltd. P ING Vysya Bank Ltd. P COMMERCIAL PAPERS Religare Finvest Ltd. A Kotak Mahindra Prime Ltd. A MAGMA Fincorp Ltd. PR Indian Oil Corporation Ltd. P * Rounded off to the nearest two digits after the decimal point. Dividend History Payout Date Individual / HUF Dividend (in `) Others Dividend (in `) Security Name Rating % To Net Alkem Laboratories Ltd. P SBI Global Factors Ltd. P Edelweiss Capital Ltd. P Muthoot Finance Ltd. A Hindalco Industries Ltd. P Aditya Birla Finance Ltd A Manappuram Finance Ltd. A Securities Trading Corporation of India Ltd. A Srei Equipment Finance Pvt. Ltd. A Srei Infrastructure Finance Ltd. PR Coromandel International Ltd. P Bharat Petroleum Ltd. P Apollo Tyres P The Indian Hotels Co. Ltd. A Srei Infrastructure Finance Ltd. A Manappuram Finance Ltd. P Bajaj Finance Ltd. P Godrej Industries Ltd. A Sterlite Industries ( India ) Ltd. P National Bank of Agriculture & Rural Development P National Housing Bank A Turquoise Investments & Finance Pvt. Ltd. (Birla Group Holding Company) P Cash n Call Assets & Receivables 1.05 TOTAL YTM : 9.03% Average Maturity : days Modified Duration : days Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Liquid Fund - Weekly Dividend 28th August st August th August th August st July th July th July th July rd July IDBI Liquid Fund - Monthly Dividend 25th August th July 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 1.05% 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 30th Aug 2011): Growth ` Daily Dividend ` Weekly Dividend ` Monthly Dividend ` Plans: - 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 30/08/2011 Security Name Dividend History Payout Date Rating % To Net CERTIFICATES OF DEPOSITS Punjab National Bank Ltd. P Vijaya Bank A Axis Bank Ltd. P Allahabad Bank Ltd A UCO Bank PR Individual / HUF Dividend (in `) Security Name Rating % To Net COMMERCIAL PAPERS Turquoise Investments & Finance Pvt. Ltd. (Birla Group P Holding Company) Apollo Tyres Ltd. P Securities Trading Corporation Of India Ltd. A Ballarpur Industries Ltd. F Indian Oil Corporation Ltd. A Manaksia Ltd. A Cash "n" Call Assets & Receivables TOTAL (Asset includes subscription money received & utilized on 30th August 11) * Rounded off to the nearest two digits after the decimal point. YTM : 9.37% Average Maturity : days Modified Duration : days Others Dividend (in `) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Ultra Short Term Fund - Weekly Dividend 30th August rd August th August th August nd August th July th July th July th July IDBI Ultra Short Term Fund - Monthly Dividend 26th August th July 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 30th Aug 2011): Growth ` Monthly Dividend ` Quarterly Dividend ` Plans: - Monthly Dividend - Quarterly 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 30/08/2011 Security Name Rating To Net EQUITY/EQUITY RELATED 7.77 Infosys Technologies Ltd Bank of Baroda Ltd ICICI Bank Ltd HDFC Bank Ltd State Bank of India Ltd Dr. Reddy's Laboratories Ltd Bharat Heavy Electricals Ltd Axis Bank Ltd Tata Motors Ltd Tata Consultancy Services Ltd CIPLA Ltd Reliance Industries Ltd Larsen & Toubro Ltd Hindalco Industries Ltd Mahindra & Mahindra Ltd Infrastucture Development Finance Co. Ltd Lupin Ltd Coal India Ltd NTPC Ltd HCL Technologies Ltd Power Finance Corporation Ltd Rural Electrification Corporation Ltd Exide Industries Ltd Hindustan Petroleum Corporation Ltd Gas Authority of India Ltd Security Name Rating To Net Power Grid Corporation of India Ltd Glenmark Pharmaceuticals Ltd Oil & Natural Gas Corpn Ltd Shriram Transport Finance Company Ltd DEBT INSTRUMENTS - BONDS/ DEBENTURES Rural Electrification Corporation Ltd. AAA 5.56 Power Finance Corporation Ltd. AAA 5.38 National Bank of Agriculture & Rural Development AAA 5.34 CERTIFICATE OF DEPOSITS Axis Bank Ltd. P Bank of Baroda Ltd. A Central Bank of India PR ICICI Bank Ltd. A Indian Overseas Bank Ltd. A Punjab & Sind Bank Ltd P State Bank of Hyderabad A State Bank of Mysore P Standard Chartered Bank P UCO Bank P Vijaya Bank PR COMMERCIAL PAPERS 9.89 Blue Star Ltd. PR Tata Capital Housing Finance Ltd. A Cash "n" Call Assets & Receivables 1.11 TOTAL * Rounded off to the nearest two digits after the decimal point. YTM (Debt Component) : 9.29% Average Maturity : days Modified Duration : days Dividend History Payout Date Individual / HUF Dividend (in `) Asset Profile Others Dividend (in `) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Monthly Income Plan - Quarterly Dividend 4th July IDBI Monthly Income Plan - Monthly Dividend 26th August th July th July Cash & Cash Equivalent 1.11 % Equity 7.77 % Debt % 8

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 30th Aug 2011): Growth ` Weekly Dividend ` Monthly Dividend ` Plans: - 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 30/08/2011 Security Name Rating % To Net CERTIFICATES OF DEPOSITS ICICI Bank Ltd. A State Bank of Hyderabad A State Bank of Mysore P Standard Chartered Bank P (Asset includes subscription money received & utilized on 30th August 11) * Rounded off to the nearest two digits after the decimal point. Dividend History Payout Date Individual / HUF Dividend (in `) Security Name Rating % To Net COMMERCIAL PAPERS Tata Capital Housing Finance Ltd. A DEBT INSTRUMENTS - BONDS/DEBENTURES TATA Motors Finance Ltd. AA Cash "n" Call Assets & Receivables TOTAL YTM : 9.25 % Average Maturity : days Modified Duration : days Others Dividend (in `) Cum Dividend NAV* (in `) Ex Dividend NAV (in `) IDBI Short Term Bond Fund - Weekly Dividend 30th August rd August th August th August nd August th July th July th July th July IDBI Short Term Bond Fund - Monthly Dividend 26th August th July 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 AA % 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.

11 IDBI Monthly Income Plan aims at giving an opportunity to investors for boosting their income and growing savings. While the plan invests its corpus primarily in debt and money market instruments that provide relative safety and stability, the balance equity component strives at augmenting the overall returns. Further, only equities that form part of the Nifty Index and the Nifty Junior Index are invested in, providing diversification, liquidity and potential for high growth. Highlights: Presenting IDBI Monthly Income Plan An open ended Income Scheme Aiming at Regular Returns & Growth Monthly income is not assured and is subject to availability of distributable surplus Plans: (a) Growth (b) Dividend (monthly/quarterly) Minimum Investment: ` 5000 and in multiples of ` 1 thereafter Systematic Investment Plan (SIP): Monthly option - ` 500 per month for minimum of 12 months or ` 1000 per month for a minimum of 6 months. Quarterly option - ` 1,500 per quarter for minumum of 4 quarters Load Structure: Entry Load - Not Applicable. Exit Load (Redemption/switch out/transfer/swp) - 1% for exit on or before 1 year from the date of allotment & in case of SIP, on or before 1 year from the date of allotment of each installment 11

12 Many Goals. One Solution. Invest in SIPs IDBI Nifty Index Fund An open-ended passively managed equity scheme tracking the S&P CNX Nifty Index (Total Returns Index) & IDBI Nifty Junior Index Fund An open-ended passively managed equity scheme tracking the CNX Nifty Junior Index (Total Returns Index) Highlights of IDBI Nifty Index Fund & IDBI Nifty Junior Index Fund Plans: (a) Growth (b) Dividend with payout/ reinvestment options Systematic Investment Plan (SIP): Monthly option ` 500 per month for a minimum period of 12 months or `1000 per month for a minimum period of six months. Quarterly Option- `1500 per quarter for a minimum period of 4 quarters Minimum Lumpsum Investment: `5000 and in multiples of `1/- thereafter. Load Structure: Entry Load- Not applicable. Exit Load (Repurchase/Switch-out/ SWP/STP) -1% for exit on or before 1 year from the date of allotment & in case of SIP, on or before 1 year from the date of allotment of each installment SMS IDBIMF to Tollfree: contactus@idbimutual.co.in Website: Statutory Details: IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. (liability restricted to Rs.10 lakhs) with IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with IDBI Asset Management Ltd. as the Investment Manager. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of the Scheme will be achieved. The NAV of the units issued under Scheme may go up or down depending upon the factors and forces affecting the securities markets. Please read the Scheme Information Documents (SID) and Statement of Additional Information (SAI) carefully before investing. IDBI Nifty Index Fund, IDBI Nifty Junior Index Fund, IDBI Liquid Fund, IDBI Ultra Short Term Fund, IDBI Monthly Income Plan and IDBI Short Term Bond Fund are only the names of the schemes and do not in any manner indicate either the quality of the schemes or their future prospects and returns. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs. 10 lakhs made by it towards setting up the Fund. IDBI Mutual fund has not launched any guaranteed or assured return scheme. The performance of the sponsor has no bearing on the expected performance of mutual fund or any of its Schemes. NAV of the Schemes will be computed on all business days and published in two daily newspapers on all business days. Units of the schemes are available for Repurchase/Switch out/sale/switch in at NAV related prices on all business dates. For further information please contact: IDBI Asset Management Ltd., IDBI Building, 2nd Floor, Plot No , Sector-11, CBD Belapur, Navi Mumbai