Equity Commentary. Index % Change % Change 1 Month 1 Year BSE SENSEX 30 INDEX -1.15% % NSE S&P CNX NIFTY INDEX -1.62% -45.

Transcription

1 February 2009

2 Equity Commentary The real economy is playing catch up with the Sensex. The domestic economic data as well as third quarter corporate results are showing a weak economic trend. On the economic front IIP (Index of Industrial Production) growth for the period April-November 2008 has declined to 3.9% from a growth level of 9.2% for the same period in the previous year. Export growth has come in negative for the months of October, November and December. On the corporate front third quarter corporate results on an aggregated basis has seen revenue growth at 15% while profits have fallen by 10%. The corporate sector has been hit by lack of demand, falling inventory valuations and high interest costs. The slowdown in economy and worsening of corporate fundamentals is likely to continue into the next few quarters given the slowdown in credit growth as banks cut back lending on the back of higher delinquencies in their loan portfolios. The Sensex has front run the weakening economy with negative returns of over 50% for calendar The bear run on the Sensex continued into January 2009 with the index returning a negative 4% for the month. Index % Change % Change 1 Month 1 Year BSE SENSEX 30 INDEX -1.15% % NSE S&P CNX NIFTY INDEX -1.62% % BOMBAY STOCK EX 100 IDX -2.74% % BOMBAY STOCK EX 500 IDX -3.24% % BSE MID-CAP INDEX -6.55% % BSE SMALL-CAP INDEX -6.51% % DOW JONES INDUS. AVG -5.69% % S&P 500 INDEX -5.01% % The Government of India (GOI) and the RBI (Reserve Bank of India) provided fiscal and monetary relief in the form of higher government expenditure and policy rate cuts respectively. The market is now in the mode of speculating on the effect of the pro growth package. The government is optimistic of growth picking up from the second quarter of fiscal However, it remains to be seen whether the slowdown will be prolonged or not and whether the stimulus packages will work. This year being an election year adds to the uncertainties to the market. General elections are slated to be in the months of April and May The market will be in a speculative mode on the outcome of the elections. The market will have discounted poor fourth quarter results. The last thing the economy needs in this economic slowdown is a hung parliament. The noise levels of the Sensex is clearly set. On one hand, incremental domestic and global economic news will move the index around. On the other hand political news flows will impact market sentiments. And of course in the middle of all this is the corporate governance issue. The Satyam fiasco has opened the market's eyes to issues of corporate governance. Balance sheets will be analyzed closely and financial results will see thorough scrutiny. The past misdeeds of promoters which the market overlooked in bullish times will come to the fore and the punishment will be sharp and heavy. In one sense this is good for the market as investors will now know what they are exactly paying for equities. NASDAQ COMPOSITE INDEX -2.24% % BRAZIL BOVESPA STOCK IDX 6.05% % FTSE 100 INDEX -3.93% % DAX INDEX -7.79% % HANG SENG INDEX -8.85% % NIKKEI % % SHANGHAI SE COMPOSITE IX 8.07% % Source : Bloomberg Net Equity Investments by FII & Mfs (US $ Million for the month) Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan FII MF Sensex

3 Debt Commentary Government borrowing does not seem to be as much a concern as the market makes it out to be. As per our analysis with a deposit growth of 20% and drawdown of Rs 100,000 crores of outstanding MSS (Market Stabilization Scheme) bonds, the demand from the banking system is around Rs 260,000 crores for fiscal The government had borrowed Rs 250,000 crores for fiscal with over Rs 60,000 crores in form of farm loan waivers, pay commission arrears and fertilizer subsidies included in the borrowing. The fiscal will see less pressure on government finances on account of the one off items. Government borrowing and fiscal deficit dominated interest rate markets in January The market shrugged off all time low policy rates, slowing growth and falling inflation and instead chose to train its eyes on government borrowing. The government in a surprise move upped its borrowing for the period January- March 2009 by Rs 25,000 crores. The announcement of the higher borrowing and the timing of the bond issues took the market by complete surprise. The ten year benchmark bond yield rose from all time lows of 4.90% to levels of 6.20% on the back of higher government borrowings. The fundamentals for interest rates strengthened in January. Growth conditions deteriorated with IIP (Index of Industrial Production) and export growth numbers Market Indicators Security 31st Jan 31st Dec Month on Month Change Basis Points (bps). Yield % Yield % Policy Rates Reverse Repo Rate Repo Rate* Cash Reserve Ratio (CRR) Liquidity Average Reverse Repo Rs Crores Average Repo Rs Crores Average Call Rate% Government Securities 91 Day T-Bill Day T-Bill Five Year Benchmark Ten Year Benchmark Currency USD/INR Rs % Inflation (% Change Week Week Year on Year) Ended Ended 17th Jan th Dec 2008 WPI Corporate Bonds 5 Year AAA Benchmark Month CD Benchmark Year CD Benchmark Interest Rate Swaps 1 Year OIS* Year OIS* * Overnight Index Swap 3D Factor Process Outlook coming in weak for the month of November The November growth numbers takes IIP growth for the period April-November 2008 to 3.9% from a growth level of 9.2% seen in the same period of the previous year. Export growth has now come in negative for the months of October and November. The RBI has revised GDP growth forecast for to 7% from their earlier forecast of 7.5%. The RBI has also indicated that downward risks to growth are high given the depressed growth conditions in the world economy. Inflation is continuing on its downward trend with the WPI (Wholesale Price th Index) growth coming in at 5.64% for the week ended 17 January Inflation had touched levels of 12.8% last year on the back of high commodity prices. The current trends in the WPI, coupled with the latest round of fuel price reduction (Government cut administered fuel prices in January 2009) indicate that inflation is likely to turn negative in the next few months. The sharp fall in commodity prices on the back of global recession has reduced inflation expectations. The RBI is in a pro growth mode given the economic slowdown and falling inflation expectations. The RBI will endeavor to keep interest rates low and system liquidity high in line with their pro growth policy objectives. USD / INR Source : CCIL, Bloomberg Ten Year AAA Spread Source : CCIL, Bloomberg Economy: Inflation continued the downward trend with WPI growth coming in at 5.64% for week ended 24th January 2009 from 6.38% as of week ended 20th December Inflation was driven down by fall in fuel and other commodity prices. The IIP data for November 2008 came in at 2.4% while exports for December 2008 was a negative 1%, the third straight month of negative exports. Credit off take numbers came off to 22% from 26% levels. The economy is showing signs of slowing down and RBI has revised growth forecast for to 7% from 7.5%. Market Psychology: The market was confronted with surprise additional borrowing of Rs 25,000 crores by the government. The additional borrowing turned market sentiments negative and the ten year government bond yield rose from lows of 4.90% to 6.20%. The government is considering further borrowing in March 2009, keeping sentiments down. The extent of additional borrowing will determine the market movement this month. Market Valuation: The yield curve rose on the back of negative market sentiment with volumes coming off. System liquidity remained comfortable and overnight rates traded around reverse repo rates of 4%. Overall Outlook: Interest rate outlook is positive given slowing economy and falling inflation % 3.20% 3.00% 2.80% 2.60% 2.40% 2.20% 2.00% 09/01/08 09/01/08 09/02/08 09/03/08 09/03/08 09/04/08 09/05/08 09/05/08 09/06/08 09/07/08 09/07/08 09/08/08 09/09/08 09/09/08 09/10/08 09/11/08 09/11/08 09/12/08 09/01/09 09/01/09 3

4 IDFC Classic Equity Fund (IDFC - CEF) An open-ended equity fund Nature : Equity Fund size : Rs Crore Fund Manager : Ajay Bodke Investment objective : The investment objective of the scheme is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. Investment style : The Scheme seeks to achieve out performance through sector rotation, theme selection, market cap bias and bottom up stock picking. Ideal investment horizon : 3 years or more Risk profile : High Entry load : Purchases of less than Rs. 5 Crores- 2.25%, Rs. 5 Crore or more (including by way of SIP/STP) - Nil, by an FOF (irrespective of the amount of Purchase)-Nil, by way of Dividend Re-investment - Nil. A switch-in/stp may also attract an Entry Load like any Purchase however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from IDFC Arbitrage Fund, where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit load: Purchases of Rs. 5 Crores or more (including by way of SIP/STP)-Nil, In case of purchase of less than Rs. 5 Crores if redeemed within 1 year from the date of Purchase(s) applying First in First out basis (including Purchases made through SIP/STP) %. There will be no exit load for investment made by FOF schemes irrespective of amount of redemption / switch outs. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. Options available: Growth, Dividend Minimum investment amount : Rs. 5,000 & in multiples of Re. 1 Additional investment amount : Re.1 SIP (minimum amount) : Rs Inception Date: 9 August 2005 Beta 0.90 R Square 0.95 Standard deviation 2.22% Last 3 dividends (Rs./ unit) : 22 August NAV May NAV Oct NAV NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 79.57% / 16.20% / 4.23% Fund manager s comment World over governments and central banks are taking various monitory and fiscal measures to minimize impact of demand destruction. Though the impact of government's actions is not expected to be seen immediately, credit squeeze is expected to ease out in later half of 2009, resulting in tapering risk premium. Thereby investors world over are expected to look out for investment opportunities in equity as an asset class - while commodity prices are already showing signs of bounce back. RBI and Indian government have also shown resilience in announcing rate cuts, while fiscal stimulus package has been lower than expectations. We expect in 2009 government to increase stimulus package and continue to aggressively cut interest rates as the inflation has already started subsiding. However, we are taking cognizance of general elections in India and geopolitical risk. We continue with our cautious stance and hold on with a large cap, liquid bias in our portfolios. under the IDFC-CEF-Growth as of 30 January 2009 Market value in Name Lac (Rs.) NAV Bajaj Auto Limited Auto Total State Bank of India HDFC Bank Ltd Axis Bank Limited Banks Total Hindustan UniLever Ltd Larsen & Toubro Ltd Diversified Total Jindal Steel & Power Ltd Ferrous Metals Total Power Finance Corporation Limited Housing Development Finance Cor Ltd Finance Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Sintex Industries Ltd Time Technoplast Limited Everest Kanto Cylinder Limited Industrial Products Total Oil & Natural Gas Corporation Ltd Oil Total Reliance Industries Ltd Hindustan Petroleum Corporation Ltd Indian Oil Corporation Ltd Petroleum Products Total Sun Pharmaceutical Industries Ltd Pharmaceuticals Total NTPC Ltd Power Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Total Others Total Call / Reverse Repo/ CBLO Total Corporate Debentures Total Net Current Asset Grand Total Long Future Total Month (Absolute) 6 Month (Absolute) Last 1 Year Last 2 Years Last 3 Years 4.18% 3.34% 14.24% -3.45% -3.37% -2.80% -4.00% % % % % % % Since Inception 2.72% 2.74% 2.87% 3.15% 3.61% 4.32% 5.45% 5.74% 6.27% 7.38% 9.35% 11.04% 0.69% IDFC-CEF - Growth BSE200 - Compounded Annualised Growth Rate Benchmark : BSE 200 Consumer Non Durables Ferrous Metals Oil Power Auto Pharmaceuticals Software Industrial Products Finance Industrial Capital Goods Telecom - Services Banks Diversified Petroleum Products 4

5 IDFC Imperial Equity Fund (IDFC - IEF) An open-ended equity fund Nature : Equity Fund size : Rs Crore Fund Manager : Kenneth Andrade Investment objective : The investment objective of the Scheme is to seek to generate capital appreciation and/or provide income distribution from a portfolio of predominantly equity and equity related instruments. There is no assurance or gurantee that the objectives of the scheme will be realized. Investment style : The Scheme seeks to invest predominantly in outstanding companies based on the potential value unlocking (subsidiary listing), strong growth in domestic demand and emerging sectors in the Indian economy. Ideal investment horizon : 3 years or more Risk profile : High Entry load : Purchases of less than Rs. 5 Crores (including by way of SIP/STP) 2.25%, Rs. 5 Crore - or more (including by way of SIP/STP) - Nil, by an FOF (irrespective of the amount of Purchase)-Nil, by way of Dividend Re-investment - Nil. A switch-in/stp may also attract an Entry Load like any Purchase however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from IDFC Arbitrage Fund, where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit load: In case of purchases of Rs. 5 Crores or more (including by way of SIP/STP)-Nil, In case of purchase of less than Rs. 5 Crores if redeemed within 1 year from the date of Purchase(s) applying First In First Out basis (including Purchases made through SIP/STP) %. There will be no exit load for investment made by FOF schemes irrespective of amount of redemption / switch outs. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. Options available: Growth, Dividend Minimum investment amount : Rs. 5,000 Additional investment amount : Re.1 SIP (minimum amount) : Rs. 1,000 Inception Date: 16 March 2006 Statistical measures : Beta 0.87 R Square 0.93 Standard deviation 2.69% Last dividends (Rs./ unit) : 14 May NAV NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 75.51% / 16.03% / 8.46% Fund manager s comment The capital markets have been battling a significant destruction in asset values through In 2009, though the outlook has not materially changed valuations and solvency risk of corporates are more identifiable. The focus of Imperial has always been to find itself as a core part of an investors portfolio. Hence the portfolio construction has revolved around selecting companies which have low financials risks and are self sustaining. We believe that these companies are not vulnerable to solvency risks in a down cycle and will be the first to change direction when the cycle re-emerges. The investment process revolves around taking a call on where valuations trade & not so much on the evolution of the organisation / company. Market value in Name Lac (Rs.) NAV Hero Honda Motors Ltd Maruti Suzuki India Ltd Auto Total State Bank of India ICICI Bank Ltd HDFC Bank Ltd Banks Total Ambuja Cements Limited Cement Total ITC LTD Consumer Non Durables Total Housing Development Finance Cor Ltd Finance Total Bharat Heavy Electricals Ltd ABB Ltd Industrial Capital Goods Total Sterlite Industries Ltd Non - Ferrous Metals Total Oil & Natural Gas Corporation Ltd Oil Total Reliance Industries Ltd Indian Oil Corporation Ltd Bharat Petroleum Corporation Ltd Reliance Petroleum Ltd Petroleum Products Total Sun Pharmaceutical Industries Ltd Pharmaceuticals Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Total Corporate Debentures Call / Reverse Repo/ CBLO Total Net Current Asset Grand Total Long Future Total under the IDFC-IEF-Growth as of 30 January Month 6 Month Last 1 Year Last 2 Years 1.47% (Absolute) (Absolute) 1.78% 15.89% 17.39% -3.37% % -7.18% % -6.93% Since Inception % % 4.34% 4.41% 5.39% 5.40% 6.02% 6.06% 6.12% % 1.03% 1.41% 2.06% IDFC-IEF - Growth BSE200 - Compounded Annualised Growth Rate Benchmark : BSE 200 Non - Ferrous Metals Pharmaceuticals Finance Cement Software Consumer Non Durables Telecom - Services Industrial Capital Goods Auto Oil Banks Petroleum Products 5

6 IDFC Premier Equity Fund (IDFC - PEF) An open-ended equity fund Nature : Equity Fund Size : Rs Crore Fund Manager : Kenneth Andrade Investment objective : The Scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. The scheme portfolio would seek to acquire, inter alia, small and medium size business with good long term potential, which are available at cheap valuation. Such securities would be identified through disciplined fundamental research keeping in view medium to long term trends in the business environment. The Scheme shall endeavor to accumulate long term investor wealth by opening subscriptions to units during periods when stocks are available at reasonable valuations. By doing so, the Fund managers would endeavor to prevent short term money from flowing into the fund which can prove detrimental to the interest of long term investors. Investment style : Focus on buying great companies at low valuation with a longer term perspective Ideal investment horizon : 3 years or more Risk profile : High Entry load : Purchases of less than Rs. 5 Crores- 2.25%, Rs. 5 Crore or more (including by way of SIP/STP) - Nil, by an FOF (irrespective of the amount of Purchase)-Nil, by way of Dividend Re-investment - Nil. A switch-in/stp may also attract an Entry Load like any Purchase however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from IDFC Arbitrage Fund, where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit load: 1.00% if redeemed within 1 year from the date of allotment or purchase /switch -in including SIP and STP. No entry and exit load for FOF Options available: Growth, Dividend Minimum investment amount : Rs. 25,000 Additional investment amount : Re.1 SIP (minimum amount) : Rs Inception Date: 28 September 2005 Statistical measures : Beta 0.94 R Square 0.83 Standard deviation 4.14% Last dividends (Rs./ unit) : NA NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 76.41% / 18.66% / 4.93% Fund manager s comment The portfolio has attempted to identify emerging themes & segment leaders which have a strong correlation to the growth of the economy. The fund is invested close to 80% with the balance in cash. The investment process & the diversification have not undergone any radical shift. The focus remains on buying into emerging business & taking a call on the entrepreneur /organization to ride through successfully the growth curve of the business cycle. Market value in Name Lac (Rs.) NAV Exide Industries Ltd Motherson Sumi Systems Ltd Auto Ancillaries Total Axis Bank Limited Banks Total Shree Cement Ltd Madras Cements Limited Cement Total IRB Infrastructure Developers Ltd Construction Total Shree Renuka Sugars Ltd Balrampur Chini Mills Ltd Kaveri Seed Company Limited Bata India Ltd Gokul Refoils And Solvent Limited Consumer Non Durables Total Blue Dart Express Ltd Courier Total Coromandel Fertilisers Ltd Fertilisers Total Shriram Transport Finance Co Ltd Rural Electrification Corp Ltd SREI Infrastructure Finance Ltd Finance Total Deep Industries Limited Gas Total ABG Infralogistics Limited Miscellaneous Total PTC India Ltd Power Total Pantaloon Retail (India) Ltd Retailing Total Educomp Solutions Ltd Software Total Page Industries Limited Textile Products Total M India Limited Trading Total Jet Airways (India) Ltd Transportation Total Others Total Corporate Debentures Total Call / Reverse Repo/ CBLO Total Net Current Asset Grand Total Long Future Total under the IDFC-PEF-Growth as of 30 January Month (Absolute) 6 Month (Absolute) Last 1 Year Last 2 Years 5.27% 6.51% 0.29% 18.48% -1.95% -3.37% -5.17% % -4.00% Last 3 Years Since Inception 9.80% 8.32% % % % % 0.32% 0.43% 0.56% 0.78% 0.89% 1.14% 1.58% 1.74% 2.02% 2.13% 2.36% 2.71% 3.37% 3.55% 3.63% 3.70% 4.33% 4.56% IDFC-PEF - Growth BSE200 - Compounded Annualised Growth Rate Benchmark : BSE 200 Chemicals Oil Pharmaceuticals Telecom - Equipment Industrial Products Gas Miscellaneous Software Retailing Transportation Trading Construction Textile Products Banks Power Courier Fertilisers Cement Auto Ancillaries Finance Consumer Non Durables 6

7 IDFC Arbitrage Fund (IDFC - AF) An open-ended equity fund Nature : Equity & Equity Derivatives Fund Size : Rs Crore Fund Manager : Ashwin Patni & Arjun Parthasarathy Investment objective : The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunity in the cash and the derivative segments of the equity markets and the arbitrage opportunity available within the derivative segments and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style : The Scheme seeks to capture the Cost of Carry by executing simultaneous buy (in the cash market) and sell (In the futures) trades. The amount not so invested is invested in FDs and money market instruments. Ideal investment horizon : 1 year or more Risk profile : Low Entry load : Nil Exit load: 0.25% in both Plan A and Plan B, if redemption / switch is requested within 30 days from the date of purchase, during ongoing period. Plans available: Plan A (Regular), Plan B (Institutional) Options available: Growth, Dividend Minimum investment amount : Plan A: Rs. 5,000, Plan B: Rs. 1,00,000 Additional investment amount : Re.1 SIP (minimum amount) : NA Inception Date: 21 December 2006 Standard deviation 0.41% Dividend frequency: When available Last 8 dividends (Rs./ unit) : 12-June-08 A NAV June-08 B NAV July-08 A NAV July-08 B NAV Aug-08 A NAV Aug-08 B NAV Sep-08 A NAV Sep-08 B NAV Oct-08 A NAV Oct-08 B NAV Nov-08 A NAV Nov-08 B NAV Dec-08 A NAV Dec-08 B NAV Jan-09 A NAV Jan-09 B NAV NAV (Rs.): Plan A (Regular) Growth Plan A (Regular) Dividend Plan B (Institutional) Growth Plan B (Institutional) Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 68.86% / 40.39% / -9.25% Fund manager s comment Cash-future spreads were volatile during the month due to equity market volatility. The fund was able to successfully roll-over its futures positions. under the IDFC-AF-Growth as of 30 January % 2.59% IDFC-AF-Growth 3.81% 4.89% CLFI 6.54% 3 Month (Absolute) 6 Month (Absolute) Last 1 Year Last 2 Years Since Inception - Compounded Annualised Growth Rate 8.76% Benchmark : CLFI 7.77% 8.10% 8.06% 8.06% Market Value in Value of Name Lac (Rs.) NAV Futures Adlabs Films Ltd Allahabad Bank Alok Industries Ltd Aptech Ltd Arvind Ltd Ashok Leyland Ltd Bajaj Hindustan Ltd Balrampur Chini Mills Ltd Bharat Forge Ltd Birla Corporation Ltd Bombay Dyeing & Manufacturing Co. Ltd Bongaigaon Refinery & Petrochem Ltd Century Textiles & Industries Ltd Chambal Fertilisers & Chemicals Ltd Central Bank Of India Development Credit Bank Ltd Dena Bank Federal Bank Ltd Financial Technologies India GTL Ltd Gateway Distriparks Limited Gujarat Alkalies & Chemicals Hindustan Construction Co. Ltd Hotel Leela Venture Ltd Hindustan Petroleum Corporation Ltd Tata Teleservices (Mah) Limited India Cements Ltd IDBI Bank Ltd Infrastructure Development Finance Company Ltd IFCI Limited Oracle Financial Serv Software Ltd Indian Hotels Co. Ltd i Infotech Limited Jaiprakash Associates Ltd Jet Airways (India) Ltd Jaiprakash Hydro Power Limited Jindal Steel & Power Ltd Kesoram Industries Ltd Mahanagar Telephone Nigam Ltd Maharashtra Seamless Ltd Chennai Petroleum Corporation Ltd NIIT Technologies Ltd Oriental Bank Of Commerce Petronet Lng Ltd Polaris Software Lab Praj Industries Limited TVS Motor Company Ltd Syndicate Bank Ltd Ultratech Cement Ltd Union Bank Of India Vijaya Bank Voltas Ltd Welspun Guj Stahl Rohren Ltd Bharat Heavy Electricals Ltd Idea Cellular Limited Cipla Ltd HCL Technologies Ltd Hindalco Industries Ltd ITC Ltd Oil & Natural Gas Corporation Ltd Ranbaxy Laboratories Ltd Sun Pharmaceutical Industries Ltd Suzlon Energy Ltd Tata Consultancy Services Ltd Total Nifty Stock ACC Ltd ABB Ltd Bharat Petroleum Corporation Ltd Reliance Infrastructure Limited Bharti Airtel Ltd Cairn India Limited DLF Limited GAIL (India) Ltd Grasim Industries Ltd Ambuja Cements Limited HDFC Bank Ltd Housing Development Finance Corp Ltd Hero Honda Motors Ltd Hindustan Unilever Ltd ICICI Bank Ltd Infosys Technologies Ltd Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Ltd National Aluminium Co. Ltd NTPC Ltd Power Grid Corporation Ltd Punjab National Bank Reliance Communications Ltd Reliance Capital Ltd Reliance Industries Ltd Reliance Petroleum Ltd Reliance Power Limited Steel Authority Of India Ltd State Bank Of India Siemens Ltd Sterlite Industries Ltd Tata Motors Ltd Tata Steel Ltd Tata Power Co. Ltd Unitech Ltd Tata Communications Limited Wipro Ltd Zee Entertainment Enterprises Ltd Bharat Heavy Electricals Ltd Idea Cellular Limited Cipla Ltd HCL Technologies Ltd Hindalco Industries Ltd ITC Ltd Oil & Natural Gas Corporation Ltd Ranbaxy Laboratories Ltd Sun Pharmaceutical Industries Ltd Suzlon Energy Ltd Tata Consultancy Services Ltd Nifty Future -3, Nifty Stock / Nifty Futures Final Total Call / Reverse Repo/ Cblo Total Bank Deposit Total Corporate Debentures Total Net Current Asset Grand Total

8 IDFC Enterprise Equity Fund (IDFC - EEF) A Close Ended Equity Fund with automatic conversion into an Open Ended Equity Scheme, on completion of 36 months. Data as of 28 January 2009 Nature : Equity Fund Size : Rs Crore Fund Manager : Kenneth Andrade. Investment objective : The investment objective of the scheme is to seek to generate capital growth from a portfolio of predominantly equity and equity related instruments(including Equity derivatives). The scheme may also invest in debt and money market instruments to generate reasonable income. Investment Strategy (in brief): The term Enterprise connotes activity, venture, project or an endeavour. The Scheme intends to invest in companies which are involved in or are in the process of setting up various business activites, ventures, projects or other commercial endeavours. The Scheme would invest in equities in the IPOs subsequent public offers or in the secondary market, other equity related instruments (including derivatives), benefit out of the cash and derivative markets arbitrage, opportunity and invest the residual sums in debt and money market instruments. For details please refer to the Offer document. The scheme will endeavour to generate capital appreciation through investing in equities by interalia adopting the mode of applying IPOs or subsequent public offering made by companies, if well-priced IPOs are not available the funds collected will be invested in other investment avenues such as index, cash futures arbitrage. Nifty spot futures arbitrage etc. as per the investment strategy of the scheme. Investment style : The Scheme endeavours to generate capital appreciation through investing in equities by inter alia adopting the mode of applying for IPOs or subsequent public offering made by companies. If well priced IPOs are not available the funds collected may be invested in the index, hence generating market return from the index and the alpha from the premium on listing of IPOs Risk profile : High Exit load : To give liquidity to investors, repurchase facility is available on a half yearly basis on specified repurchase dates. The Repurchase date(s) at the applicable NAV in the scheme are December 31, 2006, June 30, 2007, December 31,2007, June 30,2008, July 1,2008, December 31, 2008 & June 9,2009(maturity date). No load shall be charged at the time of exit, however in case of an investor exiting the scheme before amortisation is completed, the AMC shall redeem the units only after recovering the balance proportionate unamortised issue expenses, in accordance with SEBI Regulation. Options available: Growth, Dividend Minimum investment amount : Rs. 5,000 Additional investment amount : Re.1 Inception Date: 9 June 2006 Beta (BSE 200) 0.81 R Square 0.86 Beta (Nifty) 0.86 Rsquare 0.90 Standard deviation 1.85% Last 3 dividends (Rs./ unit) : 14 May NAV NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 87.35% / 12.06% / 0.58% Fund manager s comment As a strategy, the fund follows a 100% invested philosophy. The fund aims to generate alpha by participating in primary market issuances. The fund is currently invested in Nifty stocks as the primary market pipeline has been quiet and we have not seen any large issuances in the recent past. Market value in Name Lac (Rs.) NAV ACC Ltd ABB Ltd Bharat Heavy Electricals Ltd Bharat Petroleum Corporation Ltd Reliance Infrastructure Limited Idea Cellular Limited Bharti Airtel Ltd Cairn India Limited Cipla Ltd DLF Ltd GAIL (India) Ltd Grasim Industries Ltd Ambuja Cements Ltd HCL Technologies Ltd HDFC Bank Ltd Housing Development Finance Cor Ltd Hero Honda Motors Ltd Hindalco Industries Ltd Hindustan UniLever Ltd ICICI Bank Ltd Infosys Technologies Ltd ITC LTD Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Ltd National Aluminium Co. Ltd NTPC Ltd Oil & Natural Gas Corporation Ltd Power Grid Corporation Ltd Punjab National Bank Ranbaxy Laboratories Ltd Reliance Communications Ltd Reliance Capital Ltd Reliance Industries Ltd Reliance Petroleum Ltd Reliance Power Limited Steel Authority of India Ltd State Bank of India Siemens Ltd Sterlite Industries Ltd Sun Pharmaceutical Industries Ltd Suzlon Energy Ltd Tata Consultancy Services Ltd Tata Motors Ltd Tata Power Co. Ltd Unitech Ltd Tata Communications Limited Wipro Ltd Zee Entertainment Enterprises Ltd Nifty Call / Reverse Repo/ CBLO Total Corporate Debentures Total Bank Deposit Total Net Current Asset Grand Total Long Future Total under the IDFC-EEF-Growth as of 28 January 2009 Data as of 28 January % 1.89% 3 Month (Absolute) 6 Month (Absolute) Last 1 Year Last 2 Years Since Inception -3.05% -7.38% 8.45% 8.55% 12.53% 11.37% 9.36% 8.60% % % % % % % 0.23% 1.27% 1.54% 1.59% 1.68% 1.68% 2.29% 2.37% 2.63% 3.26% 4.64% 4.72% IDFC-EEF - Growth BSE200 - Compounded Annualised Growth Rate Benchmark : BSE 200 Media & Entertainment Gas Cement Construction Ferrous Metals Non - Ferrous Metals Auto Pharmaceuticals Finance Consumer Non Durables Industrial Capital Goods Diversified Software Oil Banks Telecom - Services Power Petroleum Products 8

9 IDFC Tax Saver (ELSS) Fund (IDFC - TS[ELSS]) A 10 year closed ended Equity Linked Saving Scheme Nature : Equity Fund Size : Rs Crore Fund Manager : Ajay Bodke Investment objective : The investment objective of the Scheme is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. There can be no assurance that the investment objective of the scheme will be realised. Investment style : The Scheme will invest in well- managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Risk profile : High Exit load : To give liquidity to investors, repurchase facility is available on all business days. (On completion of lock in period of 3 years from the date of allotment). No load shall be charged at the time of exit, however in case of an exiting the scheme before amortisation is completed, the AMC shall redeem the units only after recovering the balance proportionate unamortised issue expenses, in accordance with SEBI Regulations. Options available: Growth, Dividend Minimum investment amount : Rs. 500 Additional investment amount : Re.500 Inception Date: 15 March 2007 Beta 0.86 R Square 0.91 Standard deviation 3.46% Dividends frequency : NA NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 85.61% / 6.70% / 7.69% Fund manager s comment World over governments and central banks are taking various monitory and fiscal measures to minimize impact of demand destruction. Though the impact of government's actions is not expected to be seen immediately, credit squeeze is expected to ease out in later half of 2009, resulting in tapering risk premium. Thereby investors world over are expected to look out for investment opportunities in equity as an asset class - while commodity prices are already showing signs of bounce back. RBI and Indian government have also shown resilience in announcing rate cuts, while fiscal stimulus package has been lower than expectations. We expect in 2009 government to increase stimulus package and continue to aggressively cut interest rates as the inflation has already started subsiding. However, we are taking cognizance of general elections in India and geopolitical risk. We continue with our cautious stance and hold on with a large cap, liquid bias in our portfolios. Market value in Name Lac (Rs.) NAV Hero Honda Motors Ltd Auto Total Exide Industries Ltd Auto Ancillaries Total State Bank of India HDFC Bank Ltd ICICI Bank Ltd Banks Total Madras Cements Limited Cement Total Hindustan UniLever Ltd Larsen & Toubro Ltd Diversified Total Jindal Steel & Power Ltd Ferrous Metals Total Power Finance Corporation Limited Housing Development Finance Cor Ltd Finance Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Everest Kanto Cylinder Limited Time Technoplast Limited Sintex Industries Ltd Industrial Products Total Oil & Natural Gas Corporation Ltd Oil Total Reliance Industries Ltd Hindustan Petroleum Corporation Ltd Petroleum Products Total Sun Pharmaceutical Industries Ltd Pharmaceuticals Total NTPC Ltd Power Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Total Others Total Call / Reverse Repo/ CBLO Total Net Current Asset Grand Total under the IDFC-TS(ELSS)-Growth as of 30 January Month (Absolute) 6 Month (Absolute) Last 1 Year Since Inception 14.97% -2.83% -3.37% 12.50% % % % % 3.06% 2.59% 3.11% 3.72% 3.74% 3.79% 3.34% 4.42% 3.82% 5.75% 4.86% 7.12% 8.36% % % 0.45% IDFC-TS(ELSS) - Growth BSE200 - Compounded Annualised Growth Rate Benchmark : BSE 200 Consumer Non Durables Cement Auto Oil Ferrous Metals Pharmaceuticals Telecom - Services Industrial Capital Goods Software Power Auto Ancillaries Finance Industrial Products Diversified Petroleum Products Banks 9

10 IDFC Arbitrage Plus Fund (IDFC - APF) An open-ended equity fund Nature : Equity Derivatives Fund Size : Rs Crore Fund Manager : Ashwin Patni & Arjun Parthasarathy Investment objective : The investment objective of the scheme is to generate income (absolute to low volatility returns) by taking advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style : The fund aimed to generate absolute returns by investing in trades in the equity and derivative markets. The trades can consist of cash-futures arbitrage as well as relative value (such as pair trades and corporate event- based strategies) and derivatives strategies. Ideal investment horizon : 1 year or more Risk profile : Low Entry load : Nil Exit load: IDFC- APF - Plan A : 0.75 NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 1 Crore) within 1 Year such from the date of effecting such purchase/switch in Plan A (Regular Plan). No Exit Load shall be applicable in case of Purchases / Switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully NAV on investors who purchase/switch in and seek to redeem/switch out such units within 1 month from the date of investment in Plan B. Exit Load shall be Nil beyond 1 month for plan B. Options available: Growth, Dividend Minimum investment amount : Plan A : Rs.10,000, Plan B: Rs. 1,00,000 Additional investment amount : Re.1 Inception Date: 9 June 2008 Statistical measures : Standard deviation 0.82% Last dividend (Rs. / unit): 10 Dec 2008 A 0.06 NAV Dec 2008 B 0.06 NAV Jan 2009 A 0.06 NAV Jan 2009 B 0.06 NAV Dividend frequency : When available NAV (Rs.): Growth (A) (B) Dividend (A) (B) Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 68.45% / 36.90% / -5.34% Fund manager s comment Cash-future spreads were volatile during the month due to equity market volatility. The fund was able to successfully roll-over its futures positions related to arbitrage. Apart from arbitrage, the fund successfully participated in open offers, pair trades and options positions. under the IDFC-APF-Growth as of 30 January % 2.59% IDFC-APF - Growth CLFI 5.68% 4.89% Benchmark : CLFI 6.42% 5.94% 3 Month (Absolute) 6 Month (Absolute) Since Inception (Absolute) Market Value in Value of Name Lac (Rs.) NAV Futures Adlabs Films Limited Arvind Ltd Bajaj Hindustan Limited Balrampur Chini Mills Ltd Bongaigaon Refinery & Petrochem Ltd Canara Bank Century Textiles & Industries Ltd Chambal Fertilizers & Chemical Ltd Chennai Petroleum Corporation Ltd Dena Bank Development Credit Bank Limited GAIL (India) Limited GTL Ltd HCL Technologies Ltd Hindalco Industries Ltd Hindustan Petroleum Corporation Ltd IDBI Bank Ltd Idea Cellular Limited IFCI Limited India Cements Ltd Indian Overseas Bank IDFC Ltd ITC Ltd 1, , Jaiprakash Associates Ltd Jaiprakash Hydro Power Ltd Lakshmi Machine Works Ltd Neyveli Lignite Corporation Ltd Oracle Financial Services Software Limited Oriental Bank Of Commerce Petronet Lng Ltd Polaris Software Lab Ltd Praj Industries Limited Punj Lloyd Limited Ranbaxy Laboratories Ltd Reliance Communications Limited Reliance Natural Resources Ltd Rural Electrification Corporation Limited Shree Renuka Sugars Ltd State Bank Of India Suzlon Energy Limited Syndicate Bank Ltd Tata Consultancy Services Limited Tata Steel Limited Tata Teleservices (Maharashtra) Ltd Ultratech Cement Limited Welspun Guj Stahl Rohren Ltd Wipro Ltd Wire And Wireless India Limited Total 10, , Indian Oil Corporation Limited Bongaigaon Refinery & Petrochem Ltd United Spirits Ltd Shaw Wallace & Company Limited Union Bank Of India Ltd Punjab National Bank Syndicate Bank Ltd State Bank Of India Ultratech Cement Limited Grasim Industries Ltd Pair Trade Total Cambridge Solutions Limited Tata Teleservices (Maharashtra) Ltd Open Position Total ABB Limited ACC Limited Ambuja Cements Ltd Bharat Heavy Electricals Limited Bharat Petroleum Corp Ltd Bharti Airtel Limited Cairn India Limited Cipla Limited DLF Limited GAIL (India) Limited Grasim Industries Ltd HCL Technologies Ltd HDFC Bank Hero Honda Motors Ltd Hindalco Industries Ltd Hindustan Unilever Limited Housing Development Finance Corporation ICICI Bank Ltd Idea Cellular Limited Infosys Technologies Limited ITC Ltd Larsen & Toubro Limited Mahindra & Mahindra Ltd Maruti Suzuki India Ltd National Aluminium Company Ltd NTPC Limited Oil & Natural Gas Corporation Ltd Power Grid Corporation Of India Limited Punjab National Bank Ranbaxy Laboratories Ltd Reliance Capital Limited Reliance Communications Limited Reliance Industries Limited Reliance Infrastructure Ltd Reliance Petroleum Limited Reliance Power Limited Siemens Ltd State Bank Of India Steel Authority Of India Ltd Sterlite Industries Ltd Sun Pharmaceuticals Industries Ltd Suzlon Energy Limited Tata Communications Limited Tata Consultancy Services Limited Tata Motors Ltd Tata Power Unitech Limited Wipro Ltd Zee Entertainment Enterprises Ltd Call February 2009 Option Call February 2009 Option Call February 2009 Option Put February 2009 Option Put June 2009 Option Put June 2009 Option Nifty Future -2, Nifty Stock / Nifty Futures 3, , Final Total 14, , Bank Deposit Total Call / Reverse Repo/ Cblo Total Corporate Debentures Total Net Current Asset Grand Total

11 IDFC Small & Midcap Equity (SME) Fund (IDFC - SMEF) A Close Ended Equity Scheme with automatic conversion into an Open Ended Equity Scheme, on completion of 36 months. Data as of 28 January 2009 Nature : Equity Fund Size : Rs Crore Fund Manager : Kenneth Andrade Investment objective : The investment objective of the Scheme is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The Scheme will predominantly invest in small and midcap equity and equity related instruments. Small and Midcap equity and equity related instruments will be the stocks included in the CNX Midcap index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Midcap Index. The Scheme may also invest in stock other than mid cap stocks (i.e in stocks, which have a market capitalisation of above the market capitalisation range of the defined small midcap stocks) and derivatives. On defensive consideration, the Scheme may also invest in debt and money market instruments. Risk profile : High Exit load: To give liquidity to investors, repurchase facility is available on a half yearly basis on specified repurchase dates after the completion of the first two calendar half years from the date of allotment. The repurchase date(s) at the applicable NAV in the scheme are June 30,2009, Dec.31,2009, June 30,2010, Dec. 31, 2010 & March 7, 2011 (maturity date ). No load shall be charged at the time of exit, however in case of an investor exiting the scheme before amortisation is completed, the AMC shall redeem the units only after recovering the balance proportionate unamortised issue expenses, in accordance with SEBI Regulation. Please read the Offer Document for further details. Options available: Growth, Dividend Minimum investment amount : Rs. 5,000 Additional investment amount : Re.1 Inception Date: 7 March 2008 Standard deviation 2.39% Dividends frequency : NA NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 70.65% / 18.21% / 11.14% Fund manager s comment The fund philosophy is to capture the potential of the small and mid - cap companies in the country. The portfolio is built around a growth philosophy. Market value in Name Lac (Rs.) NAV Eicher Motors Ltd Auto Total Union Bank of India Bank of India ICICI Bank Ltd HDFC Bank Ltd Banks Total India Cements Ltd Shree Cement Ltd Cement Total IRB Infrastructure Developers Ltd IVRCL Infrastructures & Projects Ltd Construction Total United Spirits Ltd Shree Renuka Sugars Ltd Consumer Non Durables Total Power Finance Corporation Limited Rural Electrification Corp Ltd Finance Total Bharat Electronics Ltd Engineers India Ltd Mcnally Bharat Engineering Co Ltd Industrial Capital Goods Total Nava Bharat Ventures Limited Non - Ferrous Metals Total Oil & Natural Gas Corporation Ltd Oil Total Hindustan Petroleum Corporation Ltd Petroleum Products Total Glaxosmithkline Pharmaceuticals Ltd IPCA Laboratories Limited Pharmaceuticals Total Mundra Port & Special Eco Zone Ltd Travel & Transportation Total Others Total Call / Reverse Repo/ CBLO Total Bank Deposit Total Net Current Asset Grand Total Long Future Total under the IDFC-SMEF-Growth as of 28 January 2009 Data as of 28 January % 3 Month (Absolute) 6 Month (Absolute) Since Inception (Absolute) 11.00% -1.05% % 8.56% 7.53% 6.90% 7.13% 6.37% 5.24% IDFC-SMEF - Growth CNX Midcap % Benchmark : CNX Midcap % % 0.01% Media & Entertainment 0.07% Gas 0.12% Ferrous Metals 0.26% Diversified 0.28% Retailing 0.44% Software 0.49% Telecom - Services 0.67% Power 0.71% Industrial Products 1.63% Auto 3.07% 3.12% Non - Ferrous Metals Oil 3.48% Petroleum Products 3.58% Travel & Transportation Pharmaceuticals Consumer Non Durables Construction Cement Industrial Capital Goods Finance Banks 11

12 IDFC Strategic Sector (50-50) Equity Fund IDFC-SS (50-50)-EF A Open Ended Equity Fund Nature : Equity Fund Size : Rs Crore Fund Manager : Kenneth Andrade Investment objective : The investment objective of the scheme is to seek to generate long-term capital appreciation by investing in Equity and Equity related instruments. The investment objective of the fund shall be achieved by investing up to fifty percent of the assets of the scheme in a chosen sector (sector specific exposure) while the balance amount may be invested in companies across market capitalizations and across sectors (diversified exposure). The scheme may also invest in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Ideal investment horizon : 3 years or more Risk profile : High * Entry Load: For Purchases / switch ins of less than Rs. 5 Crores (including by way of SIP / STP) -2.25%, of Rs. 5 Crores or more (including by way of SIP / STP) - Nil, by an FOF (irrespective of the amount of Purchase) - Nil, by way of Dividend Re-investment -Nil. *However, no entry load shall be charged in case of direct applications received by the AMC i.e. applications received through internet, submitted to AMC or collection centre / Investor Service Center that are not routed through any distributor/ agent / broker. It shall also be applicable to additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor. A switch-in/stp may also attract an Entry Load Like any Purchase, however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs.5 Crores from IDFC Arbitrage Fund and IDFC Arbitrage Plus Fund where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit Load: For Redemption / Switch Out for purchase of Rs. 5 Crores or more - Nil, In case of purchases of less than Rs. 5 crores if redeemed within 1 year from the date of purchases applying First in First Out basis, (including purchases made through SIP/STP)-1.00%, By a FOF (irrespective of the amount of Redemption) - Nil. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. Options available: Growth, Dividend Minimum investment amount : Rs. 5,000 Additional investment amount : Re.1 Inception Date: 3 October 2008 Beta 1.30 R Square 1.00 Standard deviation 1.94% Dividend frequency : NA NAV (Rs.): Growth Dividend Face value (Rs. / unit) : 10 Asset allocation (equity / debt / cash) : 88.72% / 16.45% / -5.17% Fund manager s comment : Conceptually the fund is built around allocating 50 its portfolio to one sector. January saw a shift in strategy in this portfolio. We had Financials as 50 the invested corpus of SSEF which we swapped into the Oil & Gas sector. As on date the latter is the dominant part of the business. The sector offers a diversified opportunity to participate with the growth of the business across exploration refining and marketing of petroleum products in the country. The largest in terms of market capitalization we believe that this would be the mainstay of the economy for all of The Strategic Sector Fund would tend to have a higher beta because of the sector concentration. Market value in Name Lac (Rs.) NAV Maruti Suzuki India Ltd Hero Honda Motors Ltd Auto Total State Bank of India ICICI Bank Ltd HDFC Bank Ltd Banks Total Ambuja Cements Limited Cement Total Power Finance Corporation Limited Finance Total GAIL (India) Ltd Gas Total Bharat Heavy Electricals Ltd ABB Ltd Industrial Capital Goods Total Oil & Natural Gas Corporation Ltd Oil Total Reliance Industries Ltd Indian Oil Corporation Ltd Bharat Petroleum Corporation Ltd Reliance Petroleum Ltd Petroleum Products Total Glaxosmithkline Pharmaceuticals Ltd Sun Pharmaceutical Industries Ltd Pharmaceuticals Total Bharti Airtel Ltd Telecom - Services Total Call / Reverse Repo/ CBLO Total Net Current Asset Grand Total Long Future Total under the IDFC Strategic Sector (50-50) Equity Fund-Growth as of 30 January Month (Absolute) 2.47% Since Inception (Absolute) 27.90% -0.37% 19.02% % % 3.34% 3.54% 4.00% 4.51% 4.60% 5.51% 7.35% 8.96% IDFC Strategic Sector (50-50) Equity Fund Growth Benchmark : S & P CNX Nifty S & P CNX Nifty Telecom - Services Cement Auto Finance Gas Industrial Capital Goods Pharmaceuticals Oil Banks Petroleum Products 12

13 IDFC Super Saver Income Fund - Investment Plan (IDFC - SSIF-IP) An Open - Ended Income Fund Nature : Debt Fund Size : Rs Crore Fund manager : Arjun Parthasarthy Investment objective : Seek to generate stable returns by creating a portfolio that is invested in good quality fixed income and money market securities. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable long-term returns through mix of accrual income and capital appreciation. Ideal investment horizon : 1 year or more Risk profile : Medium Entry load : Nil Exit load : IDFC-SSIF-IP - Plan A : 1.00 NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 1 Crore) within 1 Year such from the date of effecting such purchase/switch in Plan A (Regular Plan). Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC-SSIF-IP - Plan B : Nil Options available : Growth, Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Crore and in multiples of Re. 1 in Plan B (Institutional Plan) Additional investment amount : Re.1 SIP (minimum amount) : in Plan A Rs. 1,000 Inception date : 14 July 2000 Standard deviation 1.64% Average maturity years Modified Duration 7.96 Years Dividend frequency : Quarterly, Half Yearly, Annually Last 3 dividends : Date Nav Freq. Others I & H IDFC-SSIF-IP-Plan A 30-Sep Half Yearly Dec Quarterly Sep Quarterly NAV (Rs.): Plan A Dividend Quarterly Plan A Growth Plan A Dividend Annual Plan A Dividend Half Yearly Plan B Growth Plan B Dividend Face Value (Rs. / unit): 10 Expense Ratio : 1.50% Fund manager's comment The fund maintained its bias towards falling interest rates with the average maturity of the portfolio held at 15 years The fund had a higher percentage of government bonds in the portfolio to effectively manage duration and liquidity. The fund will actively monitor the dynamic interest rate and credit spread environment to optimize performance. Benchmark : Crisil Composite Bond Fund Index (CCBFI) Name Rating NAV Clearing Corporation Of India Ltd CBLO Total 3.63 State Bank of India AAA Indian Railway Finance Corp. Ltd. AAA 4.50 Rural Electrification Corp Ltd AAA 4.16 Power Finance Corporation Limited AAA 2.69 Infrastructure Development Finance Company Ltd. AAA 0.91 Non Convertible Debentures Total Repo Transaction Total GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV 0.97 Govt Securities(GSE) Total Net Current Asset Govt. Securities (GSE) 71.40% 2 Net Current Asset 1.89% 3 CBLO 3.63% 4 Non Convertible Debentures 23.00% 5 Repo Transaction 0.07% IDFC-SSIF-IP Growth as of 30 January % 14.02% 7.30% 7.56% 10.94% 6.37% 7.05% 4.75% 9.58% Last 1 Year IDFC-SSIF-IP - Growth Last 2 Years CCBFI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 14/07/

14 IDFC Dynamic Bond Fund (IDFC - DBF) An Open - Ended Income Fund Nature : Debt Fund Size : Rs Crore Fund manager : Arjun Parthasarthy Investment objective : Seek to generate optimal returns with high liquidity by active management of the portfolio; by investing in high quality money market & debt instruments. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and seeks to generate returns by actively managing the interest rate volatility. Ideal investment horizon : 1 year or more Risk profile : Medium Entry load : Nil Exit load : IDFC-DBF - Plan A: 1.00 NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 10 Lakhs) within 1 Year from the date of effecting such purchase/switch in Plan A (Regular Plan). Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 10 lakhs whether redeemed partly or fully. IDFC-DBF - Plan B : Nil Options available : Growth, Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Crore and in multiples of Re. 1 in plan B (Institutional Plan). Additional investment amount : Re.1 SIP (minimum amount) : in Plan A Rs. 1,000 Inception date : 25 June 2002 Standard deviation 1.79% Average maturity years Modified Duration 8.02 Years Dividend frequency : Quarterly & Annually Last 3 dividends : Date Nav Freq. Others I & H IDFC- DBF - Plan A 31-Dec Quarterly Sep Quarterly NAV (Rs.): Plan A Growth Plan A Dividend Annual Plan A Dividend Quarterly Plan B Growth Plan B Dividend Face Value (Rs. / unit): 10 Fund manager's comment The fund actively managed duration to ride over interest rate volatility. The fund increased government bond exposure to effectively manager duration and liquidity. The fund will continue to proactively study the macro environment for optimum results. Benchmark : Crisil Composite Bond Fund Index (CCBFI) Name Rating NAV Clearing Corporation Of India Ltd CBLO Total 3.36 State Bank of India AAA Infrastructure Development Finance Company Ltd. LAAA 4.39 Power Finance Corporation Limited AAA 2.80 Indian Railway Finance Corpn. Ltd. AAA 1.75 Rural Electrification Corp Ltd AAA 1.72 Non Convertible Debentures. Total Repo Transaction Total GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV 0.89 Govt Securities(GSE) Total Net Current Asset Govt. Securities 72.24% 2 Net Current Asset 3.16% 3 CBLO 3.36% 4 Non Convertible Debentures 21.18% 5 Repo Transaction 0.07% IDFC-DBF Growth as of 30 January % 15.43% 12.35% 7.30% 7.56% 6.37% 8.49% 4.75% 9.26% 6.17% Last 1 Year IDFC-DBF - Growth Last 2 Years CCBFI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 25/06/

15 IDFC Super Saver Income Fund - Medium Term (IDFC-SSIF-MT) An Open - Ended Income Fund Nature : Debt Fund Size : Rs Crore Fund manager : Arjun Parthasarthy Investment objective : Seek to generate stable returns with a low risk strategy by investing in good quality fixed income securities and money market securities. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable long-term returns through mix of accrual income and capital appreciation. Ideal investment horizon : 6 months or more Risk profile : Medium Entry load : Nil Exit load : IDFC-SSIF-MT - Plan A: 0.50 NAV shall be the exit load payable by investors who purchase / switch in and seek to redeem / switch out such units (of amount less than or equal to 1 Crore) within 6 months from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchase / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC-SSIF-MT - Plan B: Nil Options available : Growth, Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1,00,000 and in multiples of Re. 1 in Plan B (Institutional Plan). Additional investment amount : Re.1 SIP (minimum amount) : in Plan A Rs. 1,000 Inception date : 8 July 2003 Standard deviation 1.20% Average maturity 5.47 years Modified Duration 4.69 Years Dividend frequency : Bi-monthly, Monthly, Fortnightly & Daily Last 3 dividends : Date Nav Freq. Others I & H IDFC- SSIF-MT Plan A 19-Jan Daily Jan Daily Jan Daily Jan Bimonthly Jan Fortnightly Dec Monthly NAV (Rs.): Plan A Growth Plan A Dividend Bi-Monthly Plan A Dividend Fortnightly Plan A Dividend Monthly Plan A Dividend Daily Plan B Dividend Face Value (Rs. / unit): 10 Fund manager's comment The fund is invested in a mix of medium tenor corporate bonds and government bonds with weights allocated to certificate of deposits to temper duration. The fund will aim to maintain an average maturity between four and five years. Benchmark : CRISIL Short-Term Bond Fund Index (CSTBFI) Name Rating NAV Oriental Bank of Commerce P IDBI Bank Ltd P Certificate Of Deposit Total Infrastructure Development Finance Company Ltd. LAAA 3.89 Non Convertible Debentures. Total 3.89 Clearing Corporation Of India Ltd CBLO Total GOI MD SOV GOI MD SOV Govt Securities(GSE) Total Repo Transaction Total 1.30 Net Current Asset IDFC-SSIF-MT - Growth as of 30 January Repo Transaction 1.30% 2 Govt. Securities 66.15% 3 Net Current Asset -1.55% 4 CBLO 13.71% 5 Certificate of Deposit 16.51% 6 Non Convertible Debentures 3.89% 10.40% 9.63% 8.86% 8.95% 8.25% 7.83% 6.18% 6.18% 6.22% 6.10% Last 1 Year IDFC-SSIF-MT - Growth Last 2 Years CSTBFI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 08/07/

16 IDFC Super Saver Income Fund - Short Term (IDFC-SSIF-ST) An Open - ended Income Fund Nature : Debt Fund Size : Rs Crore Fund manager : Arjun Parthasarthy Investment objective : Seek to generate stable returns with a low risk strategy by investing in good quality fixed income securities and money market securities. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable long-term returns through mix of accrual income and capital appreciation. Ideal investment horizon : 3 months or more Risk profile : Low to Medium Entry load : Nil Exit load : IDFC- SSIF- ST Plan A : 0.50 NAV shall be the exit load payable by investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 1 Crore) within 3 months from the date of effecting such purchase/switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchase / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC- SSIF- ST Plan B : Nil IDFC- SSIF- ST Plan C : 0.50 NAV shall be the exit load payable by investors who purchase/switch in (irrespective of any amount) and redeem/switch out such investments within 6 months such from the date of effecting such purchase/switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. IDFC- SSIF- ST Plan D : Nil Options available : Growth, Dividend Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Lakh and in multiples of Re. 1 in Plan B (Institutional Plan), Rs. 5,000 and in multiples Re. 1 in Plan C (Super Institutional Plan) (with effect from January 1, 2009), Rs and in multiples of Re. 1 in Plan D (MF Plan). Additional investment amount : Re.1 SIP (minimum amount) : in Plan A Rs. 1,000 Inception date : 14 December 2000 Standard deviation 0.78% Average maturity 2.80 years Modified Duration 2.59 Years Dividend frequency : Monthly, Fortnightly Last 3 dividends : Date Nav Freq. Others I & H IDFC- SSIF-ST Plan A 02-Jan Fortnightly Dec Monthly IDFC- SSIF-ST Plan B 02-Jan Fortnightly Dec Monthly IDFC-SSIF-ST Plan C 31-Dec Monthly IDFC-SSIF-ST Plan D 31-Dec Monthly NAV (Rs.) : Plan A Growth Plan A Dividend Monthly Plan A Dividend Fortnightly Plan B Growth Plan B Dividend Monthly Plan B Dividend Fortnightly Plan C Growth Plan C Dividend Monthly Plan C Dividend Fortnightly Plan D Growth Plan D Dividend Monthly Plan D Dividend Fortnightly Face Value (Rs. / unit): 10 Fund manager's comment The fund is invested in a mix of certificate of deposits, short duration corporate bonds and government bonds to optimize performance. The fund will aim to keep average maturity in the two to three year band to minimize volatility. Benchmark : CRISIL Short-Term Bond Fund Index (CSTBFI) Name Rating NAV Clearing Corporation Of India Ltd CBLO Total 4.48 IDBI Bank Ltd P Oriental Bank of Commerce P Allahabad Bank P Bank of Baroda A Punjab National Bank A State Bank Of Bikaner & Jaipur P UCO Bank P Certificate Of Deposit Total ONGC Videsh Limited P Commercial Paper Total 3.79 Clearing Corporation Of India Ltd Fixed Deposits - Security Total 0.41 Rural Electrification Corp Ltd AAA Infrastructure Development Finance Company Ltd. LAAA 9.30 Power Finance Corporation Limited AAA 8.60 Indian Railway Finance Corpn. Ltd. AAA 4.20 National Bank for Agri. & Rural Dev AAA 4.18 Power Grid Corporation Ltd. AAA 2.08 Non Convertible Debentures. Total GOI MD SOV GOI MD SOV 6.07 Govt Securities(GSE) Total Repo Transaction Total 0.25 Net Current Asset IDFC-SSIF-ST Growth as of 30 January % 9.63% Last 1 Year 8 IDFC-SSIF-ST - Growth 10.49% 8.95% 1 Last 2 Years CSTBFI 9.04% 7.83% Last 3 Years - Compounded Annualised Growth Rate 1 Non Convertible Debentures 38.54% 2 Govt. Securities 21.44% 3 Net Current Asset 7.69% 4 CBLO 4.48% 5 Commercial Paper 3.79% 6 Repo Transaction 0.25% 7 Certificate of Deposit 23.40% 8 Fixed Deposits Security 0.41% 7.14% 6.18% Last 5 Years 7.43% Since Allotment 14/12/

17 IDFC Cash Fund (IDFC-CF) An Open - Ended Liquid Fund Nature : Liquid Fund Fund Size : Rs Crore Fund manager : Anupam Joshi Investment objective : IDFC-CF is an open-ended liquid fund with an objective to generate optimal returns with high liquidity by investing in high quality money market and debt instruments. Investment Style: The Scheme aims to invest in a highly quality money market instruments with high liquidity and seeks to generate accrual income with low volatility. Ideal investment horizon : 1 day or more Risk profile : Low Entry load : Nil Exit load : Nil Options available : Growth & Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Crore and in multiples of Re. 1 in Plan B (Institutional Plan), Rs. 5 Crores and in multiples Re. 1 in Plan C (Super Institutional Plan). Additional investment amount : Re.1 SIP (minimum amount) : NA Inception date : 2 July 2001 Standard deviation 0.11% Average maturity Days Modified Duration 0.42 Years Dividend frequency : Daily, Weekly with compulsory re-investment, Periodic (in Plan B only) and Monthly (in Plan C only) Last 3 dividends : Date Nav Freq. Others I & H IDFC- CF Plan A 31-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly IDFC-CF Plan B 31-Jan Daily Jan Daily Jan Daily Dec Weekly Dec Weekly IDFC-CF Plan C 31-Jan Daily Jan Daily Jan Daily Dec Weekly Dec Weekly Jan Monthly NAV (Rs.) : Plan A Growth Plan A Dividend Daily Plan A Dividend Weekly Plan B Growth (IP ) Plan B Dividend (IP ) Daily Plan C Growth (SIP ) Plan C Dividend (SIP ) Daily Plan C Dividend (SIP) Monthly Face Value (Rs. / unit): 10 Fund manager's comment The scheme is well positioned for a period of anticipated liquidity easing enabling it to deliver returns while managing the flows. Benchmark : Crisil Liquid Fund Index (CLFI) Name Rating NAV Clearing Corporation Of India Ltd CBLO Total Union Bank of India A ICICI Bank Ltd. A Bank of Baroda A State Bank Of Travancore P Punjab National Bank A State Bank Of Bikaner & Jaipur P IDBI Bank Ltd P State Bank Of Patiala A UCO Bank P ING Vysya Bank Ltd. P National Bank for Agri. & Rural Dev P State Bank Of Indore P National Housing Bank A Oriental Bank of Commerce P Export Import Bank Of India P Allahabad Bank P State Bank of Hyderabad A Jammu & Kashmir Bank Limited P Corporation Bank P Certificate Of Deposit Total ONGC Videsh Limited P ICICI Home Finance Co. Ltd. A Shriram Transport Finance Co Ltd. F1+(IND) 1.34 Housing Development Finance Cor Ltd A Commercial Paper Total 7.99 Export Import Bank Of India AAA 2.72 Housing Development Finance Cor Ltd AAA 2.45 Union Bank of India AA Axis Bank Limited LAA LIC Housing Finance Ltd. AAA 1.36 Infrastructure Development Finance Company Ltd. AAA 0.54 Floating Rate Note Total Indian Railway Finance Corpn. Ltd. AAA 0.81 SREI Equipment Finance Pvt Ltd PR Non Convertible Debentures Total 4.79 UBL Trust Sr 53 A PTC F1(IND)(SO) 7.06 CLSS 26 Trust 2009 P1(SO) 2.54 CLSS 26 Trust 2009 P1(SO) 0.08 Corp Debt Trust Sr 4 PTC P1+(SO) 0.07 LOAN SEC TRUST 12 ICICI PTC LAAA 0.02 Pass Through Certificates Total 9.77 Standard Chartered Bank 5.44 FIXED DEPOSIT TOTAL 5.44 REPO TRANSACTION TOTAL 4.34 Net Current Asset IDFC-CF - Growth as of 30 January % 7.89% Last 1 Year IDFC-CF - Growth % 7.05% Last 2 Years CLFI 1 1 Certificate of Deposit 41.64% 2 Commercial Paper 7.99% 3 Floating Rate Note 11.42% 4 Non Convertible Debentures 4.79% 5 Pass Through Certificates 9.77% 6 Repo Transaction 4.34% 7 Net Current Asset 1.01% 8 Fixed Deposits Security 5.44% 9 CBLO 13.59% 7.43% 6.72% Last 3 Years - Compounded Annualised Growth Rate 6.21% 5.93% 6.06% Last 5 Years Since Allotment 02/07/

18 IDFC Liquidity Manager (IDFC-LM) An Open - Ended Liquid Fund Nature : Liquid Fund Fund Size : Rs Crore Fund manager : Anupam Joshi Investment objective : Seek to provide high liquidity by investing in a portfolio of money market instruments and debt instruments. Whilst the scheme would endeavour to provide high liquidity to the investors, the surplus funds will be invested to deliver reasonable returns. Investment Style: The Scheme aims to invest predominantly in the overnight money market so as to represent the returns of that part of the money market. Ideal investment horizon : 1 day or more Risk profile : Low Entry load : Nil Exit load : NIL. Options available : Growth & Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Minimum of Rs. 5,000 and in multiples of Re. 1 thereafter. Additional investment amount : Re.1 SIP (minimum amount) : Rs. 1,000 Inception date : 17 January 2006 Standard deviation 0.12% Average maturity 3.03 Days Modified Duration NA Dividend frequency : Daily with compulsory re-investment, Weekly with compulsory re-investment and Monthly. Last 3 dividends : Date Nav Freq. Others I & H 31-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly NAV (Rs.): Growth Dividend Daily Dividend Weekly Dividend Monthly Face Value (Rs. / unit): 10 Fund manager's comment The scheme is invested in overnight CBLO in line with its objectives. Benchmark : Crisil Liquid Fund Index (CLFI) Name Rating NAV Clearing Corporation Of India Ltd CBLO Total Repo Transaction Total 1.71 Net Current Asset CBLO % 2 Net Current Asset -2.63% 3 Repo Transaction 1.71% 3 2 IDFC-LM Growth as of 30 January % 8.76% 8.10% 7.43% 7.41% 6.35% 6.26% 6.27% Last 1 Year Last 2 Year IDFC-LM - Growth CLFI - Compounded Annualised Growth Rate Last 3 Year Since Allotment 17/01/

19 IDFC Liquid Fund (IDFC-LF) An Open - Ended Liquid Fund Nature : Liquid Fund Fund Size : Rs Crore Fund manager : Anupam Joshi Investment objective : Seek to provide high liquidity by investing in a portfolio of money market instruments and debt instruments. Whilst the scheme would endeavour to provide high liquidity to the investors, the surplus funds will be invested to deliver reasonable returns. Investment Style: The Scheme aims to invest in a highly quality money market instruments with high liquidity and seeks to generate accrual Income with low volatility. Ideal investment horizon : 1 day or more Risk profile : Low Entry load : Nil Exit load : Nil Options available : Growth & Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Minimum of Rs. 5,000 and in multiples of Re. 1 thereafter. Additional investment amount : Re.1 SIP (minimum amount) : Rs. 1,000 (Plan A) Inception date : 27 March 2006 Standard deviation 0.07% Average maturity Days Modified Duration 0.25 Years Dividend frequency : Daily & Weekly (with Compulsory re-investment) Monthly. Last 3 dividends : Date Nav Freq. Others I & H 31-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly NAV (Rs.): Growth Dividend Daily Dividend Weekly Dividend Monthly Face Value (Rs. / unit): 1000 Fund manager's comment The scheme is invested with short maturity instruments in line with its objectives. Benchmark : Crisil Liquid Fund Index (CLFI) Name Rating NAV State Bank Of Bikaner & Jaipur P Bank of Baroda A Certificate Of Deposit Total 9.93 Reliance Infratel Limited A Reliance Capital Ltd. A Commercial Paper Total Indian Railway Finance Corpn. Ltd. AAA Floating Rate Note Total RB Loan Trust Sr 18 P1(SO) 4.20 UBL Trust Sr 53 A PTC F1(IND)(SO) 0.69 Corp Debt Trust Sr 4 PTC P1+(SO) 0.48 Pass Through Certificates Total 5.37 Repo Transaction Total 1.78 Net Current Asset Commercial Paper 13.69% 2 Floating Rate Note 65.33% 3 Pass Through Certificates 5.37% 4 Repo Transaction 1.78% 5 Net Current Asset 3.89% 6 Certificate of Deposit 9.93% 2 IDFC-LF Growth as of 30 January % 8.76% 7.67% 8.10% 7.51% 7.55% Last 1 Year IDFC-LF - Growth CLFI Last 2 Years - Compounded Annualised Growth Rate Since Allotment 27/03/

20 IDFC Liquid Plus Fund - Treasury Plan (IDFC-LPF-TP) An Open - Ended Income Fund Nature : Debt Fund Fund Size : Rs Crore Fund manager : Anupam Joshi Investment objective : Seek to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. Investment Style: The Scheme aims to invest only in highly rated money market instruements including floating rate instruments with short term benchmarks. The Scheme seeks to generate returns predominantly through accrual income. Ideal investment horizon : 1 day or more Risk profile : Low Entry load : Nil Exit load : Nil Options available : Growth & Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Crore and in multiples of Re. 1 in Plan B (Institutional Plan), Rs. 5 Crores and in multiples Re. 1 in Plan C (Super Institutional Plan), Additional investment amount : Re.1 SIP (minimum amount) : Rs. 1,000 Inception date : 18 Feb 2003 Standard deviation 0.11% Average maturity Days Modified Duration 0.48 Years Dividend frequency : Monthly & Daily / Weekly with compulsory reinvestment Last 3 dividends : Date Nav Freq. Others I & H IDFC- LPF-TP Plan A 30-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly IDFC-LPF-TP Plan B 30-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly IDFC-LPF-TP Plan C 30-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly NAV (Rs.) : Plan A Growth Plan A Dividend Monthly Plan A Dividend Daily Plan A Dividend Weekly Plan B Growth Plan B Dividend Daily Plan B Dividend Weekly Plan B Dividend Monthly Plan C Dividend Daily Plan C Growth Plan C Dividend Weekly Face Value (Rs. / unit): 10 Fund manager's comment The scheme is invested in short maturity liquid instruments in line with its objectives to deliver marginally higher returns over cash fund. Benchmark : NSE MIBOR INDEX Name Rating NAV Clearing Corporation Of India Ltd CBLO Total 8.71 ICICI Bank Ltd. A State Bank of India P State Bank of Indore P State Bank of Patiala A UCO Bank P Allahabad Bank P Punjab National Bank PR State Bank Of Travancore P State Bank Of Mysore A Corporation Bank P Canara Bank P State Bank of Hyderabad A Bank of Baroda A IDBI Bank Ltd P State Bank Of Bikaner & Jaipur P Punjab National Bank A Oriental Bank of Commerce P Yes Bank Ltd. A Hongkong & Shanghai Banking Corpn. Ltd. F1+(IND) 1.91 Union Bank of India A Jammu & Kashmir Bank Limited P ING Vysya Bank Ltd. P National Bank for Agri. & Rural Dev P State Bank Of Bikaner & Jaipur PR Karnataka Bank Ltd A ABN Amro Bank A Citibank N.A. P Andhra Bank Ltd F1+(IND) 0.49 Vijaya Bank P Export Import Bank Of India P National Housing Bank A Small Industrial Dev Bank Of India PR Kotak Mahindra Bank Ltd. P Indian Bank F1+(IND) 0.04 HDFC Bank Ltd. F1+(IND) 0.04 Certificate Of Deposit Total ONGC Videsh Limited P Reliance Infratel Limited A National Housing Bank A Reliance Capital Ltd. A Hindustan Petroleum Corporation Ltd. P ICICI Securities Ltd P Housing Development Finance Cor Ltd A Indian Oil Corporation Ltd. A ICICI Home Finance Co. Ltd. A L&T FINANCE LTD PR Shriram Transport Finance Co Ltd. F1+(IND) 0.50 Housing Development Finance Cor Ltd P Bennett Coleman & Co Ltd P Commercial Paper Total Clearing Corporation Of India Ltd Fixed Deposits - Security Total 0.05 Housing Development Finance Cor Ltd AAA 2.08 Infrastructure Development Finance Company Ltd. AAA 1.42 LIC Housing Finance Ltd. AAA 1.40 National Housing Bank AAA 0.71 Indian Railway Finance Corp. Ltd. AAA 0.71 IDBI Bank Ltd AA ICICI Bank Ltd. LAAA 0.30 Floating Rate Note Total 7.02 IDBI Bank Ltd AA Infrastructure Development Finance Company Ltd. AAA 0.20 Union Bank of India AA Non Convertible Debentures. Total 0.56 RBL Loan Trust Sr XIII P1+(SO) 2.03 CREDIT ASSET TRUST SERIES LII F1+(SO) 2.02 Small Operators Tust 2008 F1+(IND)(SO) 0.67 RB Loan Sec Trust Sr 22 P1+(SO) 0.51 RB Loan Trust Sr XV A3 PTC AAA(SO) 0.40 RB Loan Sec Trust Sr 23 P1+(SO) 0.20 INDIAN RETAIL ABS SERIES XVII LAAA(SO) 0.00 Pass Through Certificates Total 5.83 Treasury Bills Total 1.01 Repo Transaction Total 1.88 Net Current Asset IDFC-LPF-TP Growth as of 30 January % 8.05% % 6.92% Last 1 Year Last 2 Year Last 3 Year IDFC-LPF-TP - Growth NSE MIBOR - Compounded Annualised Growth Rate 1 Certificate of Deposit 63.23% 2 Repo Transaction 1.88% 3 Commercial Paper 11.58% 4 Fixed Deposits Security 0.05% 5 Floating Rate Note 7.02% 6 Non Convertible Debentures 0.56% 7 Pass Through Certificates 5.83% 8 Net Current Asset 0.13% 9 Treasury Bills 1.01% 10 Call/Reverse Repo/CBLO 8.71% 7.14% 6.68% 6.34% 5.97% Last 5 Year 5.85% 6.13% Since Allotment 18/02/

21 IDFC Liquid Plus Fund - Investment Plan (IDFC-LPF-IP) An Open - Ended Income Fund Nature : Debt Fund Size : Rs Crore Fund Manager : Anupam Joshi Investment objective : Seek to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. Investment Style : TheScheme aims to invest in highly rated money market instruments including floating rate instruments with short term benchmarks. The Scheme seeks to generate returns predominantly through accrual income. Ideal investment horizon : 1 day or more Risk profile : Low Entry Load : Nil Exit Load : Nil Options available : Growth & Dividend. Reinvestment facility is available under the Dividend Option Minimum investment amount : Rs and in multiples of Re.1 in plan A (Regular Plan), Rs. 1 Crore and in multiplies of Re.1 in plan B (institutional Plan). Additional investment amount : Re.1 SIP (minimum amount) : Rs (Plan A) Inception Date : 9 August 2004 Standard deviation 0.13% Average maturity Days Modified Duration 0.20 Years Dividend frequency : Days, weekly (with reinvest facility in both plan A & plan B), Monthly, Quarterly & Annual. Last 3 Dividends : Date Nav freq. Others I & H IDFC-LPF-IP Plan A 30-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly Dec Quarterly IDFC-LPF-IP Plan B 30-Jan Daily Jan Daily Jan Daily Jan Weekly Jan Weekly Jan Weekly Jan Monthly NAV (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Annual Plan A Dividend Monthly Plan A Dividend Daily Plan A Dividend Weekly Plan B Growth Plan B Dividend Monthly Plan B Dividend Weekly Plan B Dividend Daily Face Value (Rs. / unit) : 10 Fund Manager's comment The fund is invested in short maturity money market instruments which will help the fund in current period of tight liquidity. Benchmark : NSE MIBOR INDEX Name Rating NAV State Bank of Hyderabad A Certificate Of Deposit Total 4.65 Reliance Capital Ltd. A Reliance Infratel Limited A Commercial Paper Total Indian Railway Finance Corpn. Ltd. AAA 0.96 Lic Housing Finance Ltd. AAA 0.48 Floating Rate Note Total 1.44 UBL TRUST SR 53 A PTC F1(IND)(SO) INDIAN Retail ABS SERIES XVII LAAA(SO) 0.35 Pass Through Certificates Total Repo Transaction Total 0.39 Net Current Asset IDFC-LPF-IP Growth as of 30 January % 8.05% Last 1 Year IDFC-LPF-IP - Growth Last 2 Years NSE MIBOR - Compounded Annualised Growth Rate % 7.27% 1 Certificate of Deposit 4.65% 2 Commercial Paper 47.07% 3 Floating Rate Note 1.44% 4 Pass Through Certificates 39.11% 5 Repo Transaction 0.39% 6 Net Current Asset 7.34% 7.15% 7.14% Last 3 Years 6.49% 6.55% Since Allotment 09/08/

22 IDFC Government Securities Fund - Investment Plan (IDFC-GSF-IP) An Open Ended - Dedicated Gilt Fund Nature : Debt Fund Size : Rs Crore Fund Manager : Arjun Parthasarthy Investment objective : IDFC GSF -IP is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities. Investment Style : The Scheme proposes to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon : 1 year or more Risk profile : Medium Entry Load : Nil Exit Load : IDFC-GSF - IP : Plan A : 1.00 NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 10 Lacs) within 1 Year from the date of effecting such purchase/switch in Plan A (Regular Plan). Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amount greater than Rs. 10 Lakhs whether redeemed partly or fully. IDFC-GSF - IP : Plan B: Nil Options available : Growth, Dividend. Reinvestment facility is available under the Dividend Option Minimum investment amount : Rs and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1Crore and in multiples of Re. 1 in Plan B (Institutional Plan). Additional investment amount : Re. 1 SIP (minimum amount) : Rs (Plan A) Inception Date : 9 March 2002 Average Maturity : Years Standard deviation 2.21% Average maturity Years Modified Duration 9.53 Years Dividend frequency : Quarterly / Half yearly / Yearly. Last 3 Dividends : Date NAV Freq. Others I & H IDFC-GSF-IP Plan A 08-Dec Quarterly Sep Half Yearly Mar Yearly NAV (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Half Yearly Plan A Dividend Annual Plan B Growth Plan B Dividend Face Value (Rs. / unit) : 10 Fund Manager's comment The funds maintained average maturity of the portfolio at around 20 years given the positive view on interest rates.. The fund will position in the segment of the yield curve where returns will be optimum. Benchmark : ISEC Composite INDEX Name Rating NAV Clearing Corporation Of India Ltd CBLO Total 5.37 Repo Transaction Total GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV 2.08 Govt Securities(GSE) Total Net Current Asset Repo Transaction 0.14% 2 G-Secs 93.24% 3 Net Current Aset 1.25% 4 Call/Reverse Repo/CBLO 5.37% IDFC-GSF-IP Growth as of 30 January % 15.06% 13.20% 12.47% 11.18% 10.03% 7.37% 7.11% 8.60% Last 1 Year Last 2 Years IDFC-GSF-IP - Growth ISCI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 09/03/

23 IDFC Government Securities Fund - Short Term Plan (IDFC-GSF-ST) An Open Ended - Dedicated Gilt Fund Nature : Debt Fund Size : Rs Crore Fund Manager : Arjun Parthasarthy Investment objective : IDFC GSF-ST is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities. Investment Style : The Scheme proposes to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon : 1 day or more Risk profile : Low Entry Load : Nil Exit Load : IDFC-GSF - ST Plan A : 0.25 NAV on investors who purchase / switch in and seek to redeem / switch out such units within 15 days from the date of effecting such purchase / switch in Plan A (Regular Plan). Investors opting for PEP/Dividend reinvestment option / SWP or switch between options will not be levied an exit load. IDFC-GSF - ST Plan B : Nil Options available : Growth, Dividend Minimum investment amount : Rs and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 1 Crore and in multiples of Re. 1 in Plan B (Institutional Plan) Additional investment amount : Re. 1 SIP (minimum amount) : Rs (Plan A) Inception Date : 9 March 2002 Standard deviation 0.95% Average maturity 0.08 Years Modified Duration 0.10 Years Dividend frequency : Quarterly /Monthly Last 3 Dividends : Date NAV Freq. Others I & H IDFC-GSF-ST Plan A 30-Jan Weekly Jan Weekly Jan Weekly Jan Monthly Dec Quarterly IDFC-GSF-ST Plan B 30-Jan Weekly Jan Weekly Jan Weekly NAV (Rs.) : Plan A Growth Plan A Dividend Monthly Plan A Dividend Quarterly Plan A Dividend Weekly Plan B Growth Plan B Dividend Weekly Face Value (Rs. / unit) : 10 Fund manager s comment : The fund had a good mix of short dated treasury bills and overnight money markets to reduce volatility. Benchmark : ISEC Composite INDEX Name Rating NAV Clearing Corporation Of India Ltd CBLO Total Clearing Corporation Of India Ltd Fixed Deposits - Security Total DAYS TBILL (MD 20/03/2009) SOV DAYS TBILL (MD 13/02/2009) SOV Treasury Bills. Total Repo Transaction Total 0.43 Net Current Asset Repo Transaction 0.43% 2 CBLO 13.12% 3 Fixed Deposits Security 5.47% 4 Treasury Bills 81.65% 5 Net Current Asset -0.66% IDFC-GSF-ST Growth as of 30 January % 15.06% 12.47% 10.03% 7.11% 3.74% 4.01% 3.14% 4.40% Last 1 Year Last 2 Years Last 3 Years IDFC-GSF-ST - Growth ISCI - Compounded Annualised Growth Rate Last 5 Years Since Allotment 09/03/

24 IDFC Government Securities Fund - Provident Fund Plan (IDFC-GSF-PF) An Open Ended - Dedicated Gilt Fund Nature : Debt Fund Size : Rs Crore Fund Manager : Arjun Parthasarthy Investment objective : Seek to generate optimal returns with high liquidity by investing in Government Securities. Investment Style : The Scheme propose to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon : 1 year or more Risk profile : Medium Entry Load : Nil Exit Load : IDFC- GSF- PF Plan A : Nil IDFC- GSF- PF Plan B : Exit load of 1.00 NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 5 crore and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 5 crores. Options available : Growth, Dividend Minimum investment amount : Rs and in multiples of Re. 1 in plan A (Regular Plan), Rs. 25,00,001 and in multiplies of Re.1 in plan B (institutional Plan). Additional investment amount : Re. 1 SIP (minimum amount) : Rs. 1000(Plan A) Inception Date : 29 March 2004 Standard deviation 2.45% Average maturity Years Modified Duration Years Dividend frequency : Quarterly / Yearly Last 3 Dividends : Date NAV Freq. Others I & H IDFC-GSF-PF Plan A 31-Dec Quarterly IDFC-GSF-PF Plan B 31-Dec Quarterly NAV (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Annual Plan B Growth Plan B Dividend Quarterly Face Value (Rs. / unit) : 10 Fund Manager's comment :The funds maintained average maturity of the portfolio at around 20 years given the positive view on interest rates.. The fund will position in the segment of the yield curve where returns will be optimum. Benchmark : ISEC Composite Index Name Rating NAV Repo Transaction Total GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV GOI MD SOV 4.37 Govt Securities(GSE) Total Net Current Asset Repo Transaction 2.40% 2 Govt. Securities (GSE) 95.51% 3 Net Current Asset 2.09% 2 IDFC-GSF-PF Growth as of 30 January % 15.06% 14.90% 12.47% 12.37% 10.03% 8.32% 7.00% Last 1 Year IDFC-GSF-PF - Growth Last 2 Years ISCI - Compounded Annualised Growth Rate Last 3 Years Since Allotment 29/03/

25 IDFC All Seasons Bond Fund (IDFC-ASBF) An Open - Ended Fund of Funds Scheme Nature : Debt Fund Size : Rs Crore Fund Manager : Arjun Parthasarthy Investment objective : Seek to generate optimal returns with high liquidity by active management of the portfolio, by investing predominantly in debt oriented mutual fund schemes and money market instruments Investment Style : The Scheme aims to actively manage the interest rate environment by allocating funds to various fixed income schemes based on the interest rate outlook. Ideal investment horizon : 1 year or more Risk profile : Medium Entry Load : Nil Exit Load : IDFC-ASBF - Plan A : 0.75 NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 10 Lakhs) within 1 Year from the date of effecting such purchase/switch in Plan A. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 10 Lakhs whether redeemed partly or fully. Options available : Growth, Dividend Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in plan A (Regular Plan). Additional investment amount : Re. 1 SIP (minimum amount) : Rs Inception Date : 13 September 2004 Standard deviation 1.89% Average maturity Years Modified Duration NA Dividend frequency : Quarterly, Half Yearly & Annual Last 3 Dividends : Date Nav Freq. Others I & H IDFC-ASBF Plan A 31-Dec Quarterly Sep Half Yearly Nav (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Half Yearly Plan A Dividend Annual Face Value (Rs. / unit) : 10 Fund Manager's comment The fund is exposed to active funds to capture movement in interest rates and is invested dynamic bond fund, Super Saver Income Fund-Investment Plan and Gilt Funds. Benchmark : Crisil Composite Bond Fund Index (CCBFI) Name Rating NAV IDFC Dynamic Bond Fund - Growth IDFC GSF-Provident Fund-Inst Plan B-Growth IDFC - SSIF - Investment Plan - Growth IDFC GSF - Investment Plan - Growth IDFC GSF - Investment Plan -Plan B-Growth Mutual Fund Units Total Repo Transaction Total 1.92 Net Current Asset Repo Transaction 1.92% 2 Mutual Fund Units 97.88% 3 Net Current Asset 0.20% 2 under the IDFC-ASBF-Growth as of 30 January % 13.23% 7.30% 7.56% 10.92% 6.37% 8.90% 5.67% Last 1 Year IDFC-ASBF - Growth Last 2 Years CCBFI - Compounded Annualised Growth Rate Last 3 Years Since Allotment 13/09/

26 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - 9 (Allotment Date 28 Feb 2005) Fund Size Rs Crores I Date of Maturity 07 Apr 2010 Repo Transaction 3.22 IDBI Bank Ltd AA HDFC Ltd AAA ICICI Bank Ltd. AAA Union Bank of India AA Indian Railway Finance Corp. Ltd. AAA 9.44 Non Convertible Debentures Net Current Asset 3.27 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Growth Plan A - Dividend * Face value per unit = Rs 10/- IDFC-FMP - QS 46 (Allotment Date 6 Nov 2008) Fund Size Rs Crores I Date of Maturity 4 Feb 2009 Repo Transaction 0.36 Canara Bank P UCO Bank P Vijaya Bank P IDBI Bank Ltd P Bank of Baroda A Allahabad Bank P State Bank of India P State Bank Of Patiala A Oriental Bank of Commerce P Certificate Of Deposit Net Current Asset NAV as on 28 January 2009 PLAN (Rs./Unit*) Growth Dividend * Face value per unit = Rs 10/- IDFC-FMP - QS47 (Allotment Date 21 Nov 2008) Fund Size Rs Crores I Date of Maturity 19 Feb 2009 NAV as on 28 January 2009 IDBI Bank Ltd P State Bank of India P UCO Bank P Indian Bank F1+(IND) 9.61 Corporation Bank P State Bank Of Patiala A Certificate Of Deposit Net Current Asset 0.10 PLAN (Rs./Unit*) Plan A Dividend Plan A Growth * Face value per unit = Rs 10/- 26

27 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - QS48 (Allotment Date 11 Dec 2008) Fund Size Rs Crores I Date of Maturity 12 Mar 2009 NAV as on 28 January 2009 ICICI Bank Ltd. A Certificate Of Deposit Net Current Asset 0.24 PLAN (Rs./Unit*) Plan A Dividend Plan A Growth * Face value per unit = Rs 10/- IDFC-FMP - YS 17 (Allotment Date 27 Mar 2008) Fund Size Rs Crores I Date of Maturity 02 Apr 2009 Kotak Mahindra Bank Ltd. P Allahabad Bank P ICICI Bank Ltd. A Export Import Bank Of India P Corporation Bank P Oriental Bank of Commerce P Certificate Of Deposit Reliance Infratel Limited A Commercial Paper HDFC Ltd AAA 0.58 Floating Rate Note 0.58 Credit Asset Trust Series L F1+(SO) Corp Debt Trust Sr 4 PTC P1+(SO) RB Loan Trust Sr XV A3 PTC AAA(SO) 2.80 Pass Through Certificates Net Current Asset 0.63 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS 19 (Allotment Date 27 Mar 2008) Fund Size Rs Crores I Date of Maturity 02 Apr 2009 ICICI Bank Ltd. A State Bank Of Patiala A State Bank Of Indore P State Bank of Hyderabad A Karur Vysya Bank Ltd. F1+(IND) 5.21 Oriental Bank of Commerce P IDBI Bank Ltd P Bank of Baroda A Certificate Of Deposit Housing Development Finance Cor Ltd P Reliance Infratel Limited A Commercial Paper 5.08 Credit Asset Trust Series L F1+(SO) Corp Debt Trust Sr 4 PTC P1+(SO) 6.41 RB Loan Trust Sr XV A3 PTC AAA(SO) 1.75 Loan SEC Trust ICICI Bank Ptc Ser XVI AAA(SO) 0.20 Pass Through Certificates Net Current Asset 0.39 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- 27

28 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - YS20 (Allotment Date 31 Mar 2008) Fund Size Rs Crores I Date of Maturity 06 Apr 2009 Repo Transaction 0.26 ICICI Bank Ltd. A Union Bank of India A Corporation Bank P HDFC Bank Ltd. F1+(IND) 0.97 Punjab National Bank A Oriental Bank of Commerce P Certificate Of Deposit Reliance Infratel Limited A Commercial Paper 8.33 Infrastructure Development Finance Company Ltd. AAA Housing Development Finance Cor Ltd AAA SREI Equipment Finance Pvt Ltd PR Power Finance Corporation Limited AAA 0.29 Non Convertible Debentures Corp Debt Trust Sr 4 PTC P1+(SO) RB Loan Trust Sr XV A3 PTC AAA(SO) Loan SEC Trust ICICI Bank PTC Ser XVI AAA(SO) 6.56 Credit Asset Trust Series L F1+(SO) 1.69 Loan Sec Trust 12 ICICI PTC LAAA 0.02 Pass Through Certificates Net Current Asset 3.69 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend - Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS21 (Allotment Date 14 Apr 2008) Fund Size Rs Crores I Date of Maturity 20 Apr 2009 ICICI Bank Ltd. A Punjab National Bank A IDBI Bank Ltd P Certificate Of Deposit Power Finance Corporation Limited AAA 0.60 Non Convertible Debentures Net Current Asset NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS22 (Allotment Date 18 June 2008) Fund Size Rs Crores I Date of Maturity 24 June 2009 Repo Transaction 0.87 IDBI Bank Ltd P Punjab National Bank A Oriental Bank of Commerce P Certificate Of Deposit LIC Housing Finance Ltd. AAA National Bank for Agri. & Rural Dev AAA Housing Development Finance Cor Ltd AAA 9.97 Power Finance Corporation Limited AAA 9.83 Rural Electrification Corp Ltd AAA 1.04 Non Convertible Debentures Credit Asset Trust Series L F1+(SO) PSE Loan Trust Sr 1 A1+(SO) 4.10 Pass Through Certificates Net Current Asset 1.68 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- 28

29 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - YS23 (Allotment Date 15 July 2008) Fund Size Rs Crores I Date of Maturity 16 July 2009 ICICI Bank Ltd. A % Kotak Mahindra Bank Ltd. P % Export Import Bank Of India P % Corporation Bank P % Punjab National Bank A % Certificate Of Deposit 83.57% Reliance Infratel Limited A % Commercial Paper 0.54% Rural Electrification Corp Ltd AAA 0.56% Power Finance Corporation Limited AAA 0.21% Non Convertible Debentures. 0.77% RB Loan Sec Trust Sr 23 P1+(SO) 15.33% Pass Through Certificates 15.33% Net Current Asset -0.20% % NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS24 (Allotment Date 31 July 2008) Fund Size Rs Crores I Date of Maturity 3 Aug 2009 ING Vysya Bank Ltd. P Corporation Bank P Certificate Of Deposit 6.30 Reliance Telecom Ltd. A Sundaram Finance Limited P Reliance Capital Ltd. A Cholamandalam DBS Finance Ltd. P Commercial Paper SREI Infrastructure Finance Ltd. A LIC Housing Finance Ltd. AAA 2.86 Non Convertible Debentures RB Loan Sec Trust Sr 23 P1+(SO) Pass Through Certificates Net Current Asset 0.58 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS 25 (Allotment Date 14 Aug 2008) Fund Size Rs Crores I Date of Maturity 17 Aug 2009 Allahabad Bank P Corporation Bank P Certificate Of Deposit Reliance Capital Ltd. A Reliance Infratel Limited A Commercial Paper Rural Electrification Corp Ltd AAA National Bank for Agri. & Rural Dev AAA Power Finance Corporation Limited AAA 2.64 Non Convertible Debentures PSE Loan Trust Sr 1 A1+(SO) Pass Through Certificates Net Current Asset 1.81 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- 29

30 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - YS 26 (Allotment Date 23 Sep 2008) Fund Size Rs Crores I Date of Maturity 24 Sep 2009 IDBI Bank Ltd P Certificate Of Deposit Housing Development Finance Cor Ltd A Commercial Paper LIC Housing Finance Ltd. AAA 8.46 Power Finance Corporation Limited AAA 7.81 Non Convertible Debentures Net Current Asset 0.75 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend - Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - YS27 (Allotment Date 31 Oct 2008) Fund Size Rs Crores I Date of Maturity 02 Nov 2009 Hongkong & Shanghai Banking Corpn. Ltd. F1+(IND) Corporation Bank P Certificate Of Deposit Housing Development Finance Cor Ltd A Commercial Paper Power Finance Corporation Limited AAA Tata Sons Ltd. AAA Non Convertible Debentures Loan SEC Trust ICICI Bank PTC Ser XVI 6.80 Pass Through Certificates 6.80 Net Current Asset 2.59 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend -- Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - FMS - 1 (Allotment Date 20 Aug 2008) Fund Size Rs Crores I Date of Maturity 12 Nov 2009 Allahabad Bank P Corporation Bank P Certificate Of Deposit Housing Development Finance Cor Ltd AAA Power Finance Corporation Limited AAA Rural Electrification Corp Ltd AAA National Bank for Agri. & Rural Dev AAA 7.41 LIC Housing Finance Ltd. AAA 6.93 Indian Railway Finance Corpn. Ltd. AAA 6.92 Tata Sons Ltd. AAA 6.88 Power Grid Corporation Ltd. AAA 4.93 Non Convertible Debentures Net Current Asset 3.45 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- 30

31 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 28 January 2009 IDFC-FMP - FMS-2 (Allotment Date 28 Aug 2008) Fund Size Rs Crores I Date of Maturity 23 Nov 2009 Corporation Bank P Certificate Of Deposit 7.30 Power Grid Corporation Ltd. AAA Rural Electrification Corp Ltd AAA National Bank for Agri. & Rural Dev AAA Power Finance Corporation Limited AAA Tata Sons Ltd. AAA LIC Housing Finance Ltd. AAA 5.98 Non Convertible Debentures Loan SEC Trust ICICI Bank PTC Ser XVI AAA(SO) Pass Through Certificates Net Current Asset 4.10 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Growth Plan A - Dividend Plan B - Growth Plan B - Dividend * Face value per unit = Rs 10/- IDFC-FMP - EMS-1 (Allotment Date 21 Dec 2007) Fund Size Rs Crores I Date of Maturity 18 Jun 2009 Housing Development Finance Cor Ltd A Certificate Of Deposit Net Current Asset 0.33 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth * Face value per unit = Rs 10/- IDFC-FMP - NMS 1 (Allotment Date 14 Oct 2008) Fund Size Rs Crores I Date of Maturity 6 May 2010 Oriental Bank of Commerce P Commercial Paper 0.28 Housing Development Finance Cor Ltd A Commercial Paper Rural Electrification Corp Ltd AAA Housing Development Finance Cor Ltd AAA Power Grid Corporation Ltd. AAA LIC Housing Finance Ltd. AAA Indian Railway Finance Corpn. Ltd. AAA 9.61 Tata Sons Ltd. AAA 9.56 Power Finance Corporation Limited AAA 1.48 Non Convertible Debentures Net Current Asset 4.17 NAV as on 28 January 2009 PLAN (Rs./Unit*) Plan A - Dividend Plan A - Growth Plan B - Dividend -- Plan B - Growth -- * Face value per unit = Rs 10/- 31

32 Risk Factors Risk Factors: Mutual Funds and securities investments are subject to market risks, reinvestment risk, changes in political, economic environment and government policy and there is no assurance or guarantee that the objectives of the Scheme/s will be achieved. The NAV of the Scheme/s can go up or down depending on factors and forces affecting the Securities Market including fluctuation in interest rates, trading volumes and reinvestment risk. Past performance of the Sponsor/AMC/Mutual Fund is not necessarily indicative of the future performance of the Scheme/s and may not necessarily provide a basis for comparison with other investments. IDFC Super Saver Income Fund (IDFC-SSIF), IDFC Cash Fund (IDFC-CF), IDFC Government Securities Fund (IDFC-GSF), IDFC Dynamic Bond Fund (IDFC-DBF), IDFC All Seasons Bond Fund (IDFC-ASBF), IDFC Liquid Plus Fund (IDFC- LPF) with two plans namely Investment Plan & Treasury Plan, IDFC Classic Equity Fund (IDFC-CEF), IDFC Premier Equity Fund (IDFC-PEF), IDFC Imperial Equity Fund (IDFC-IEF), IDFC Arbitrage Fund (IDFC-AF), IDFC Enterprise Equity Fund (IDFC-EEF), IDFC Tax Saver (ELSS) Fund (IDFC-TS (ELSS)), IDFC Liquidity Manager (IDFC-LM), IDFC Liquid Fund (IDFC-LF), various IDFC Fixed Maturity Plans, IDFC Arbitrage Plus Fund (IDFC-APF), IDFC Small and Midcap Equity (SME) Fund (IDFC-SMEF), IDFC Strategic Sector (50-50) Equity Fund and are names of the Schemes and do not in any manner indicate either the quality of the Schemes, their future prospects or returns. The Sponsor or any of its associates is not responsible or liable for any loss resulting from the operation of the Schemes beyond the corpus of the Trust of Rs. 30,000/-. Scheme specific risk of IDFC-ASBF: The Scheme will invest in a basket of 100% debt schemes. Hence the performance of the scheme would depend upon the performance of the underlying schemes. This being a Fund of Funds scheme, the investors are bearing the recurring expenses of the underlying schemes. IDFC-AF: The scheme proposes to invest in equity and equity related instruments including derivatives which by nature are volatile and prone to price fluctuations on a daily basis due to both macro and micro factors. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of these investments. Different segments of financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities' purchases due to settlement problems could cause the Scheme to miss certain investment opportunities. IDFC-TS (ELSS): Amounts invested in the Scheme shall be subject to a lock-in of three years from the date of allotment. Under ELSS scheme, investments by Individuals & HUFs in the fund upto Rs. 1,00,000 in a financial year qualify for deduction under 80C. All the equity schemes invest in equity and equity related instruments which by nature are volatile and prone to price fluctuation on a daily basis due to both macro and micro factors. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of these investments. IDFC-SS (50-50) EF: Standard & Poor's ( S&P ) is a division of The McGraw-Hill Companies, Inc., a New York corporation. Among other things, S&P is engaged in the business of developing, constructing, compiling, computing and maintaining various equity indices that are recognized worldwide as benchmarks for U.S. stock market performance. "Standard & Poor's " and "S&P " are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by India Index Services & Products Limited in connection with the S&P CNX Nifty Index. IISL may further license the S&P trademarks to third parties, and has sublicensed such marks to IDFC AMC (Pvt.) Ltd. in connection with the S&P CNX Nifty Index and IDFC Strategic Sector (50-50) Equity Fund. The S&P CNX Nifty Index is not compiled, calculated or distributed by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in products that utilize S&P CNX Nifty Index as a component thereof, including IDFC Strategic Sector (50-50) Equity Fund. The Products(s) (IDFC Strategic Sector (50-50) Equity Fund) is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"). Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the S&P CNX Nifty Index to track general stock market performance in India. The relationship of S&P and IISL to IDFC AMC (Pvt.) Ltd. is only in respect of the licensing of certain trademarks and trade names of their Index which is determined, composed and calculated by IISL without regard to the IDFC AMC (Pvt.) Ltd. or the Product(s). Neither S&P nor IISL has any obligation to take the needs of the IDFC AMC (Pvt.) Ltd. or the owners of the Product(s) into consideration in determining, composing or calculating the S&P CNX Nifty Index. Neither S&P nor IISL is responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. Neither IISL nor S&P has any obligation or liability in connection with the administration, marketing or trading of the Product(s). S&P and IISL do not guarantee the accuracy and/or the completeness of the S&P CNX Nifty Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. Neither S&P nor IISL makes any warranty, express or implied, as to results to be obtained by IDFC AMC (Pvt.) Ltd., owners of the product(s), or any other person or entity from the use of the S&P CNX Nifty Index or any data included therein. IISL and S&P make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, IISL and S&P expressly disclaim any and all liability for any damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. Terms of Issue & Load Structure: IDFC-SSIF, IDFC-CF, IDFC-GSF, IDFC-DBF, IDFC-LPF, IDFC-ASBF, IDFC-LM, IDFC-LF, IDFC-CEF, IDFC-PEF, IDFC-TS (ELSS), IDFC-AF & IDFC-IEF: During the continuous offer the AMC calculates and publishes NAVs and offers for sale and redemption of units of the Scheme on all Business days. There is no entry / exit load for IDFC-LF, IDFC-LM, IDFC-CF, IDFC-DBF-Plan B, IDFC-SSIF Investment Plan (IP) Plan B, IDFC-SSIF Short Term Plan (ST) Plan B and Plan D, IDFC SSIF Medium Term (MT) Plan B, IDFC-GSF Investment Plan (IP) Plan B, IDFC-GSF Short Term Plan (ST) Plan B, IDFC-GSF Provident Fund Plan (PF) Plan A and IDFC-LPF. There is no entry load for IDFC-DBF-Plan A, IDFC-SSIF Investment Plan (IP) Plan A, IDFC-SSIF Short Term Plan (ST) Plan A and Plan C, IDFC-SSIF Medium Term (MT) Plan A, IDFC-GSF Investment Plan (IP) Plan A, IDFC-GSF Short Term Plan (ST) Plan A, IDFC- GSF Provident Fund Plan (PF) Plan B and IDFC-ASBF. Exit Load: For IDFC-DBF-Plan A and IDFC-GSF Investment Plan (IP) Plan A - 1 NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 10 Lakhs and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 10 Lakhs whether redeemed partly or fully. IDFC-SSIF Investment Plan (IP) Plan A NAV on investors who purchase/switch in and seek to redeem/switch out such units (of amount less than or equal to 1 Crore) within 1 Year such from the date of effecting such purchase/switch in Plan A (Regular Plan). Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC-SSIF Short Term Plan (ST) Plan A NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 1 Crore and redeem / switch out such investments within 3 months such from the date of effecting such purchase / switch. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC-SSIF Short Term Plan (ST) Plan C NAV shall be applicable in case of investors who purchase / switch in (irrespective of any amount) and redeem / switch out such investments within 6 months such from the date of effecting such purchase / switch. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. IDFC-SSIF Medium Term Plan (MT) - Plan A NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 1 Crore and redeem / switch out such investments within 6 months from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully. IDFC- GSF Investment Plan (IP) Plan A - 1 NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 10 Lakhs and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 10 Lakhs whether redeemed partly or fully. IDFC-GSF Short Term Plan (ST) Plan A NAV on investors who purchase / switch in and seek to redeem / switch out such units within 15 days from the date of effecting such purchase / switch in Plan A (Regular Plan). Investors opting for PEP/Dividend reinvestment option / SWP or switch between options will not be levied an exit load. IDFC-GSF Provident Fund Plan (PF) Plan B - Exit load of 1.00 NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 5 crore and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 5 crores. IDFC-ASBF NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 10 Lakhs and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 10 Lakhs whether redeemed partly or fully. IDFC-CEF, IDFC-PEF & IDFC-IEF are Open Ended Equity Schemes. IDFC-CEF, IDFC-PEF & IDFC-IEF: The Units can be subscribed / redeemed at the Applicable NAV, subject to applicable load, on all business days during the continuous offer. Entry Load For IDFC-CEF, IDFC-PEF & IDFC-IEF: During the Ongoing Offer Period load will be charged as follows: amount to be invested (including by way of SIP/STP) being less than Rs. 5 Crores- 2.25%, Rs. 5 Crores or more (including by way of SIP/STP) - Nil, by an FOF (irrespective of the amount of Purchase)-Nil, by way of Dividend Re-investment Nil. A switch-in/stp may also attract an Entry Load like any Purchase however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from IDFC Arbitrage Fund, where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit Load of IDFC-CEF & IDFC-IEF: In case of purchases of Rs. 5 Crores or more (including by way of SIP/STP) Nil, In case of purchase of less than Rs. 5 Crores if redeemed Within 1 year from the date of Purchase(s) applying First in First Out basis (including Purchases made through SIP/STP) %. There will be no exit load for investment made by FOF schemes irrespective of amount of redemption / switch outs. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. Exit Load of IDFC-PEF: For Redemption within 1 year from the date of subscription applying First in First out basis for investments (including through SIPs/STPs/SWP/STAR) - 1%. There will be no Exit load for investment made by FOF scheme irrespective of amount of redemption / switch out. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. IDFC-AF is an Open Ended Equity scheme. The Units are available at applicable NAV during continuous offer. During the Ongoing Offer Period: Entry Load: For all purchases including Switch ins Nil, By way of Dividend reinvestment Nil. Exit Load: For redemptions including switch outs (including Switches from Plan A to Plan B and vice-versa) 0.25% upto 30 days from the date of investment in Both Plans A and B. There will be no exit load in case of switches made between different options (Growth & Dividend) within the same Plan (i.e. Plan A and Plan B). IDFC-EEF is a Close Ended Equity scheme with automatic conversion into an Open Ended Equity scheme on completion of 36 months. The AMC will calculate and publish the NAV on a weekly basis till the time scheme remains close ended. To give liquidity to investors, repurchase facility is available on a half yearly basis on specified repurchase dates. The Repurchase date(s) at the applicable NAV in the scheme are December 31, 2006, June 30, 2007 December 31, 2007, June 30, 2008, July 1, 2008, December 31, 2008 & June 9, 2009 (maturity date). No load shall be charged at the time of exit, however in case of an investor exiting the scheme before amortisation is completed, the AMC shall redeem the units only after recovering the balance proportionate unamortised issue expenses, in accordance with SEBI Regulations. IDFC-SMEF is a Close Ended Equity scheme with automatic conversion into an open ended equity on the completion of 36 months. The AMC will calculate and publish the NAV on weekly basis till the time the scheme remains close ended. To give liquidity to investors, repurchase facility will be made available on a half yearly basis on specified repurchase dates after the completion of the first two calendar half years from the date of allotment. The Repurchase date(s) at the applicable NAV in the scheme are June 30, 2009, December 31, 2009, June 30, 2010, December 31, 2010 & March 7, 2011 (maturity date). No load shall be charged at the time of exit, however in case of an investor exiting the scheme before amortisation is completed, the AMC shall redeem the units only after recovering the balance proportionate unamortised issue expenses, in accordance with SEBI Regulations. IDFC Tax Saver (ELSS) Fund is a 10 years close ended Equity linked savings scheme (subject to lock in for a period of 3 years from date of allotment). To give liquidity to investors, repurchase facility is available 32

33 Risk Factors on all business days. (On completion of lock in period of 3 years from the date of allotment). IDFC-APF is an Open Ended Equity scheme. The Units are available at applicable NAV during continuous offer. During the Ongoing Offer Period: IDFC-APF: Entry Load: For all purchases including by way of Switch ins Nil, By way of Dividend reinvestment Nil. Exit load of 0.75 NAV shall be applicable in case of investors who purchase / switch in amounts less than or equal to Rs. 1 Crore and redeem / switch out such investments within 1 year such from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. No exit load shall be applicable in case of purchases / switch ins of amounts greater than Rs. 1 Crore whether redeemed partly or fully in Plan A and 0.25% upto 1 month from the date of investment in Plan B, NIL beyond 1 month incase of Plan B. IDFC-SS(50-50) EF is an Open Ended Equity scheme. The Units are available at Rs. 10 Plus applicable load during the NFO and at NAV plus applicable load during continuous offer. During the NFO and the Ongoing Offer Period: Entry Load: Of less than Rs. 5 Crores (including by way of SIP / STP) 2.25%. Of more than Rs. 5 Crores (including by way of SIP / STP) NIL, By an FOF (irrespective of the amount of Purchase) Nil, By way of Dividend reinvestment Nil. A switch-in/stp may also attract an Entry Load like any Purchase, however no load shall be chargeable on investments switched in by investor from any other Equity Scheme(s) of IDFC Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from IDFC Arbitrage Fund, IDFC Arbitrage Plus Fund where entry load of 2.25% shall be applicable). Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. Exit Load: For purchases of Rs. 5 Crores or more Nil, In case of purchases of less than Rs. 5 crores if redeemed within 1 year from the date of purchase(s) applying First in First Out basis, (including purchases made through SIP/STP ) 1%, By a FOF (irrespective of the amount of Redemption) Nil. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. IDFC-FMP-9, IDFC-TS-I, IDFC-FMP-YS17, IDFC-FMP-YS19, IDFC-FMP-YS20, IDFC-FMP-YS21, IDFC-FMP-YS22, IDFC-FMP-YS23, IDFC-FMP-YS24, IDFC- FMP-YS25, IDFC-FMP-EMS1, IDFC-FMP-FMS-1, IDFC-FMP-FMS-2, IDFC-FMP-QS46, IDFC-FMP-QS47 and IDFC FMP- QS48 are Close Ended Income Schemes. The AMC will calculate and publish the NAV on a weekly basis. The units issued under IDFC-FMP-9 will be redeemed on April 7, 2010, IDFC-FMP-YS17 on April 2, 2009, IDFC-FMP-YS19 on April 2, 2009, IDFC-FMP-YS20 on April 6, 2009, IDFC-FMP-YS21 on April 20, 2009, IDFC-FMP-YS22 on June 24, 2009, IDFC-FMP-YS23 on July 16, 2009, IDFC-FMP-YS24 on August 3, 2009, IDFC-FMP-YS25 on August 17, 2009, IDFC-FMP-FMS1 on September 22, 2009, IDFC-FMP-FMS2 on November 23, 2009, IDFC-FMP-EMS1 on June 18, 2009, IDFC-FMAF-I on December 23, 2008, IDFC-TS-I on January 11, 2009, IDFC-FMP-QS42 on December 10, 2008, IDFC-FMP-QS43 on December 23, 2008, IDFC-FMP-QS46 on February 4, 2009, IDFC- FMP-QS47 on February 19, 2009 and IDFC FMP QS48 on March 12, In IDFC-FMP- 9 exit load is 5% for repurchases made upto March 31, 2007, 4% for repurchases made upto and March 31, 2008, 3% for repurchases made upto March 31, 2009, 2% for repurchases made upto March 31, 2010 and Nil on maturity. To give liquidity to investors, repurchase facility is made available on a quarterly basis. In IDFC-FMP-YS17/19/20/21/22/23/24/25 exit load is 2.00% if repurchased after the date of allotment and after first Wednesday of any calendar month, and NIL on maturity. In IDFC-FMP-EMS1 exit load is 2.00% for repurchases made upto December 31, 2007 and March 31, 2008, 1.50% for repurchases made upto June 30, 2008 and September 30, 2008, 1.00% for repurchases made upto December 31, 2008 and March 31, 2009 and NIL on maturity. In IDFC-FMP-QS46 exit load is 1.00% for repurchases made upto December 22, 2008 and NIL on maturity. In IDFC FMP QS47 exit load is 1% for repurchases made up to January 5, 2009 and NIL on maturity. In IDFC FMP QS48 exit load is 1% for repurchases made up to January 27, 2009 and NIL on maturity. No entry load will be charged in case of direct applications received by the AMC i.e. applications received through internet, submitted to AMC or collection centre/ Investor Service Centre that are not routed through any distributor/agent/broker. It shall also be applicable to additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor. All Plans are available for investments by all categories of investors. Minimum investment amount for application in IDFC LF, IDFC-LM, IDFC-CF-Plan A, IDFC DBF-Plan A, IDFC-SSIF Investment Plan (IP) Plan A, IDFC SSIF-Short Term Plan (ST) Plan A, Plan C and Plan D, IDFC-SSIF Medium Term (MT) Plan A, IDFC-GSF Investment Plan (IP) Plan A, IDFC-GSF Short Term Plan (ST) Plan A, IDFC-GSF Provident Fund Plan (PF) Plan A, IDFC-LPF Investment Plan (IP) - Plan A, IDFC-LPF Treasury Plan (TP) - Plan A and IDFC- ASBF is Rs Minimum investment amount for application in IDFC-CF-Plan B, IDFC-DBF-Plan B, IDFC-SSIF Investment Plan (IP) Plan B, IDFC-GSF Investment Plan (IP) Plan B, IDFC-GSF Short Term Plan (ST) Plan B, IDFC-LPF Investment Plan (IP) - Plan B and IDFC-LPF Treasury Plan (TP) - Plan B is Rs Minimum investment amount for application in IDFC-CF-Plan C and IDFC-LPF Treasury Plan (TP) - Plan C is Rs Minimum investment amount for application in IDFC SSIF-Short Term Plan (ST) Plan B and IDFC SSIF-Medium Term Plan (MT) Plan B is Rs Minimum investment amount for application in IDFC-GSF Provident Fund Plan (PF) Plan B is Rs Investment Objective: IDFC-SSIF is an open-ended income scheme, seeking to generate stable returns with a low risk strategy by investing in good quality fixed income securities. IDFC-CF is an open-ended income fund with an objective to generate optimal returns with high liquidity by investing in high quality money market and debt instruments. IDFC-GSF is an openended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in Government Securities. IDFC-FMP-9: To seek to achieve growth of capital by investing in a portfolio of fixed income securities normally in line with the duration of the scheme. IDFC-FMP-YS17/19/20/21/22/23/24/25, IDFC-FMP- QS32/36/37/38/39/40/41/42, IDFC-FMP-EMS1: To seek to generate income by investing in a portfolio of debt and money market instruments. IDFC-LM & IDFC-LF: To seeking to provide high liquidity by investing in a portfolio of money market instruments and debt instruments. Whilst the scheme would endeavour to provide high liquidity to the investors, the surplus funds will be invested to deliver reasonable returns. There can be no assurance that the investment objective of the Scheme will be realised. IDFC-DBF is an open ended income scheme seeking to generate optimal returns with high liquidity by active management of the portfolio; by investing in high quality money market & debt instruments. IDFC- LPF is an open-ended income scheme seeking to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. IDFC-ASBF is an open-ended fund of funds scheme seeking to generate optimal returns with high liquidity by active management of the portfolio, by investing predominantly in debt oriented mutual fund schemes and money market instruments. IDFC-CEF is an open ended Equity Scheme to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. IDFC-PEF (in brief): The Scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. The Scheme portfolio would seek to acquire, inter alia, small and medium size businesses with good long term potential, which are available at cheap valuations. Such securities would be identified through disciplined fundamental research keeping in view medium to long-term trends in the business environment. The Scheme shall endeavor to accumulate long-term investor wealth by opening subscriptions to units during periods when stocks are available at reasonable valuations. By doing so, the Fund managers would endeavor to prevent short-term money from flowing into the fund which can prove detrimental to the interests of long-term investors. IDFC-IEF: The investment objective of the Scheme is to seek to generate capital appreciation and/or provide income distribution from a portfolio of predominantly equity and equity related instruments. There is no assurance or guarantee that the objectives of the scheme will be realized. IDFC-AF: The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized. IDFC-TS (ELSS): The investment objective of the Scheme is to seek to generate long-term capital growth from a diversified portfolio of predominantly equity and equityrelated securities. There can be no assurance that the investment objective of the scheme will be realised. IDFC-EEF: The investment objective of the Scheme is to seek to generate capital growth from a portfolio of predominantly equity and equity-related instruments (including equity derivatives). The scheme may also invest in debt and money market instruments to generate reasonable income. There can be no assurance that the investment objective of the Scheme will be realized. IDFC-APF: The investment objective of the Scheme is to generate income (absolute to low volatility returns) by taking advantage of opportunities in the cash and derivatives segment of the equity markets including the arbitrage opportunities available within the derivatives segment, by using another derivative based strategies and by investing the balance in debt and money market instruments. However there is no assurance or guarantee that the objectives of the scheme will be realized. IDFC-SS(50-50)EF: The investment objective of the scheme is to seek to generate long-term capital appreciation by investing in Equity and Equity related instruments. The investment objective of the fund shall be achieved by investing up to fifty percent of the assets of the scheme in a chosen sector (sector specific exposure) while the balance amount may be invested in companies across market capitalizations and across sectors (diversified exposure). The scheme may also invest in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Investment Strategy (in brief): The term 'Enterprise' connotes activity, venture, project or an endeavour. The Scheme intends to invest in companies which are involved in or are in the process of setting up various business activities, ventures, projects or other commercial endeavours. The Scheme would invest in equities in the IPOs, subsequent public offers or in the secondary market, other equity related instruments (including derivatives), benefit out of the cash and derivative markets arbitrage opportunity and invest the residual sums in debt and money market instruments. IDFC-SMEF: The investment objective of the Scheme is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The Scheme will predominantly invest in small and midcap equity and equity related instruments. Small and Midcap equity and equity related instruments will be the stocks included in the CNX Midcap index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Midcap Index. The Scheme may also invest in stocks other than mid cap /small cap stocks (i.e. in stocks, which have a market capitalisation of above the market capitalisation range of the defined small - midcap stocks) and derivatives. On defensive consideration, the Scheme may also invest in debt and money market instruments. In case of discontinuation / suspension of CNX Midcap Index, the AMC reserves the right to modify the definition of Mid cap and Small cap companies. In case of such a modification, the interest of investors will be of paramount importance. There can be no assurance that the investment objective of the scheme will be realized. The scheme will invest in well-managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on an understanding of the industry growth potential and interaction with company management to access the company's core competencies to achieve long-term sustainable profit growth. The scheme would predominantly create a portfolio of emerging business and companies that are aspiring leaders in their respective field of operations. Some part of the portfolio would be in stocks/ companies that do not have a significant history of being listed. The scheme is expected to deliver returns for investors looking for a focused aggressive portfolio of fundamentally good businesses. The IDFC Small & Midcap Equity (SME) Fund ( Product ) is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL makes no representation or warranty, express or implied to the owners of the product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the CNX Midcap Index (name of the index) to track general stock market performance in India. The relationship of IISL to the IDFC Asset Management Company Private Limited (name of third party licensee) is in respect of the using of the trademark and trade name of CNX Midcap Index (name of the index) which is determined, composed and calculated by IISL without regard to the IDFC Asset Management Company Private Limited (name of third party licensee) or the product. IISL has no obligation to take the needs of IDFC Asset Management Company Private Ltd. or the owners of the Product into consideration in determining, composing or calculating the CNX Midcap Index (name of the index). IISL is not responsible for nor has participated I the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be converted into cash. IISL has no obligation or liability in connection with the adm Copy of Scheme Information Document and Key Information Memorandum along with application form for all the schemes may be obtained from the office of IDFC Mutual Fund, One India Bulls Centre, 841, Jupiter Mills Compound, Senapati Bapat Marg,, Elphinstone Road, (West), Mumbai Contact for details. For details please read the respective Scheme Information Document (SID) (including those of FMPs)/ Offer Document (OD) / Statement of Additional Information (SAI) carefully before investing. 33

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36 IDFC AMC Offices lahmedabad: Ground Floor, Zodiac Avenue, Opp. Mayor s Bunglow, Near Law Garden, Ahmedabad Tel.: /5857. lbangalore: Raheja Point, 2nd Floor, Magrath Road, Opp. Garuda Mall, Bangalore Tel.: /52, /05/06. lchandigarh: Suite No. 5, 3rd Floor, SCO No , Sector 17-C, Chandigarh Tel. : /1918. lchennai: Maalavika Centre, Old no. 144/145, New No. 60, Kodambakkam High Road, Nungambakkam, Chennai Tel.: / 10/ 11. lcochin: HDFC House 1st Floor, Ravipuram Junction, Cochin Tel.: lcoimbatore: Red Rose Plaza, 509, D.B. Road, R.S. Puram, Coimbatore Tel.: , lhyderabad: 4th Floor, Central Plaza, # /A, Raj Bhavan Road, Somajiguda, Hyderabad Tel.: /47, Fax lindore: 21/1, DM Tower, Race Course Road, Indore Tel.: ljaipur: G-7, G-8, Anukampa Towers, Church Road, Jaipur Tel.: , lkanpur: Office No. 214, 215, IInd Floor, KAN Chambers, 14/113, Civil Lines, Kanpur Tel: , Kolkata: Oswal Chambers, 1st Floor, 2 Church Lane, Kolkata Tel.: / 78/ 89/ 88/ 90. llucknow: Narain Automobiles, 4 Shahnazaf Road, Lucknow Tel.: lludhiana: SCO 16-17, Basement, Feroze Gandhi Market, Ludhiana Tel.: , lmumbai: 270, DN Road, Ground Floor, Cox Building, Fort, Mumbai - 1. Tel.: lnagpur: 1st Floor, Narang Towers, 27, Palm Road, Civil Lines, Nagpur Tel.: lnew Delhi: 4th Floor, Narain Manzil, 23 Barakhamba Road, New Delhi Tel.: , , lpune: 1st Floor, Dr. Herekar Park Building, Next to Kamala Nehru Park, Off. Bhandarkar Road, Pune Tel: / 4. lrajkot: Business Empire, 5 Jagnath Plot Corner, Gymkhana Road, Rajkot Tel lsurat: C K Tower, 1st Floor, Near Sargam Shopping Centre, Parle Point, Surat - 7. Tel lvadodara: Ground Floor, Akash Ganga Complex, Adjacent to Vanijya Bhavan, Race Course Circle, Vadodara Tel.: / 939. lvisakhapatnam: Visakha Executive Centre, /5, Eswar Arcade, Dwarakanagar,1st Lane, Visakhapatnam , Mob: Phone Transact REDEEM SWITCH CHECK BALANCE Call Free: * * Available from 8.00 am to 7.00 pm on all business days.