Fund Review. November 2008

Transcription

1 Fund Review November 2008

2 Equity Commentary Equities will now have to sift out the noise and focus on reality. The noise surrounding equities has brought down Sensex by 24% in October The Sensex fall has been in tandem with the fall in global equity indices, which have fallen in a range of 10% to 25% across geographies. The noise has been caused by the bursting of the credit bubble in the developed markets which has forced governments and central banks to intervene extensively to prevent a collapse of the financial system. The freeze in global liquidity has caused a run on risky asset classes of emerging market equities, commodities and credit spreads. The effect of this bubble burst is seen in the performance of various asset classes year to date. Global equities have fallen by 30% to 60% across geographies, commodity indices have fallen 26%, US Dollar has strengthened by over 10% against majors while Japanese Yen has gained over 10% and credit spreads have moved up anywhere between 150bps to 1500bps. The only performing asset class has been interest rates which have fallen on the back of rate cuts effected by central banks. The US Federal Reserve has cut rates by 325bps while ECB has cut rates by 25bps. Government bond yields have fallen between 50bps to 100bps across the globe on movement of money to risk free assets. The reality is economies globally are facing a slowdown in economic growth. Various indicators such as retail sales, consumer confidence and industrial production are indicating deceleration in economic growth. Equity and commodity markets are factoring in sharp slowdown in growth. The question to ask is whether the Sensex is factoring in a sharp drop in economic growth or is this a temporary phase that can correct once global markets stabilize. The reality for India is that withdrawal of liquidity from the country is creating huge systemic issues. India s foreign exchange reserves have dropped by USD 60 billion from levels of USD 315 billion to USD 255 billion. The outflow of US Dollars from the country has created a big hole in liquidity. The RBI (Reserve Bank of India) has been forced to cut the CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) to address the liquidity crunch. The RBI has released Rs 220,000 crores through these liquidity measures, but this liquidity injection has only negated the liquidity crunch brought about by US Dollar outflows from the country. Liquidity required for productive uses is not available and this is threatening to derail economic growth. Investors, against the backdrop of a global slowdown in economic growth and a withdrawal of global liquidity, will have to digest the fact that economy can go into a period of slow growth with recovery taking longer than expected. Return expectations on equities have to be realistic with time frame to realize the expectations extended. st Index 31 October %Change Month BSE SENSEX 30 INDEX % NSE S&P CNX NIFTY INDEX % BOMBAY STOCK EX 100 IDX % BOMBAY STOCK EX 500 IDX % BSE MID-CAP INDEX % BSE SMALL-CAP INDEX % DOW JONES INDUS. AVG % S&P 500 INDEX % NASDAQ COMPOSITE INDEX % BRAZIL BOVESPA STOCK IDX % FTSE 100 INDEX % DAX INDEX % HANG SENG INDEX % NIKKEI % SHANGHAI SE COMPOSITE IX % Source : Bloomberg Net Equity Investments by FII & MFs (US$ Million) for the Month Oct-08 3-Oct-08 6-Oct-08 7-Oct-08 8-Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct-08 FII MF Sensex 27-Oct Oct Oct

3 Debt Commentary The conditions for interest rates are favorable given the current macro economic environment. Slowing economic growth and falling commodity prices have lowered inflation expectations which were trending at elevated levels. The threat to economic growth has prompted the RBI ( Reserve Bank of India) to switch monetary policy from controlling inflation expectations to promote economic growth. However, the road to lower interest rates is not a straight line given the uncertain environment surrounding financial markets. The environment is still uncertain given liquidity constraints on the back of global uncertainty, deteriorating government finances as government is forced to spend to spur growth, SLR cuts lowering demand for Market indicators Security 31st Oct. 31st Sept. Month on Month Change basis Point (bps) Yield % Yield % Policy Rates Reverse Repo Rate Repo Rate* Cash Reserve Ratio (CRR) *1st November 2008 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 18th Oct th Sept 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 government securities by banks and unpredictable behaviour of commodity prices especially oil. The RBI over the last one month has lowered CRR (Cash Reserve Ratio) by 350bps, Repo by 150bps and SLR (Statutory Liquidity Ratio) by 350bps, 100bps permanently and by 250bps temporarily. The RBI in reducing the policy rates took into consideration the threat to economic growth brought about by the global financial crisis and the threat to financial stability brought about by money moving out of the country. The RBI in their monetary policy review on the 24th of October 2008 reduced their GDP growth estimate for fiscal by 50bps from 8% to 7.5%. The RBI also noted that inflation was trending down with inflation as measured by the WPI (Wholesale Price Index) coming in at 10.68% for the week ended 18th October 2008 after seeing highs of 12.63% in August The cause for inflation was helped by the sharp fall in commodity prices with commodity indices falling by over 30% from peaks and oil prices falling by 50% from highs. The RBI by reducing CRR and SLR has infused over Rs 200,000 crores into the system. The infusion of liquidity in the system has negated the deep hole in liquidity caused by currency outflows. The foreign exchange reserves of the country have dropped by USD 60 billion over the last few months. The drop in foreign exchange reserves has been due global risk aversion to emerging market assets. This risk aversion has led to portfolio outflows, depreciating Rupee (Rupee has fallen over 20% year to date against the US Dollar) and freezing of US Dollar credit to Indian banks and corporates. Ten Year GOI 8.80% 8.60% 8.40% 8.20% 8.00% 7.80% 7.60% 7.40% 7.20% 7.00% 6.80% 29/09/ /10/ /10/2008 Source: CCIL, Bloomberg 10/10/ /10/ /10/ /10/ /10/ /10/ /10/2008 Five Year OIS Yield Ten Year AAA Spread 8.50% 8.00% 7.50% 7.00% 6.50% 6.00% 29/09/ /10/ /10/ /10/ /10/ /10/ /10/ /10/ /10/ /10/ % 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 29/09/ /10/ /10/ /10/ /10/ /10/ /10/ /10/ /10/ /10/2008 Source: Bloomberg Source: Bloomberg 3

4 IDFC Classic Equity Fund (IDFC-CEF) An open-ended equity fund as of 31 October 2008 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 : 1 year or more Risk profile : High Entry load : Purchases of 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 : 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 Statistical measures : Beta 0.91 R Square 0.95 Standard deviation 2.22% Last 3 dividends (Rs. / unit) : 22 August May Oct (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 81.93% / 14.44% / 3.63% Fund manager's comment Market value in Lac (Rs.) Maruti Suzuki India Ltd Bajaj Auto Ltd. New Auto Total Axis Bank Ltd HDFC Bank Ltd State Bank of India Ltd Banks Total Hindustan Unilever Ltd Larsen & Toubro Ltd Diversified Total Housing Development Finance Co Power Finance Corporation Ltd Finance Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Time Technoplast Ltd Everest Kanto Cylinder Ltd Sintex Industries Ltd Industrial Products Total Oil & Natural Gas Corporation Oil Total Reliance Industries Ltd Hindustan Petroleum Corpn. Ltd Reliance Petroleum Ltd Petroleum Products Total Sun Pharmaceuticals Ltd Jubliant Organosys Ltd Pharmaceuticals Total National Thermal Power Company Power Total Infosys Technologies Ltd Satyam Computer Services Ltd Software Total Bharti Airtel Ltd Telecom - Services Others Total Corporate Debentures Total Money Market Instrument Total Net Current Asset Grand Total Long Future Total Short Future Total We had mentioned in our last month s commentary that the global credit crisis and accompanying financial turmoil is expected to result in a sharp slowdown in world GDP growth. The International Monetary Fund (IMF) in its latest report has slashed growth projections for the world economy and predicted that the United States- the epicenter of financial meltdown- will continue to lose traction. IMF has projected that global growth which was 5% in CY07 will slide sharply to 3.9% in CY08 and plummet further to less than 3% in CY09 the worst showing since IMF regards a global growth figure of 3% or less as recession. The resultant demand destruction in commodities like oil, ferrous and nonferrous metals has lead to severe erosion in their prices. We are underweight in metals. As we had predicated this has helped abate inflationary concerns globally and allowed central banks to pursue aggressive monetary easing through cuts in interest rates. We saw aggressive cuts in rates from Central Banks in the US, China, Japan, Taiwan etc. The European Central Bank and Bank of England are expected to follow suit in their meetings scheduled later this week. Domestically inflation has shown marked slowdown and is now widely expected to come into single digits in next couple of months. To address fears of sharp slowdown in the economy and liquidity concerns due to sharp spike in overnight rates the RBI come out all guns blazing and lowered CRR, SLR and repurchase rates. It also allowed banks to lend to address liquidity concerns of NBFC s and MF s by providing a special window to borrow. Over the last month approximately Rs crores has been pumped up by the RBI into the system to address the squeeze in liquidity. We expect this massive infusion of liquidity and lowering of rates to send a strong signal to the financial intermediaries to lower the lending rates. This lowering of rates would act as a spur to revive consumption lead demand initially and investment demand overtime. We expect this to positively impact banks, automobiles and capital goods and are overweight in these sectors. Large outflows of FII money have put pressure on rupee and it has depreciated by over 20% since its low last year. This should ideally have helped provide fillip to our exports but a severely contracting global economy has negated any hopes of that. In these times of global uncertainties we continue to be cautious and hold on with our philosophy to gravitate towards large, liquid companies that have strong balance sheets, low leverage, less reliance on external capital raisings to fund their growth over the medium term and demonstrated their resilience to survive & thrive in previous economic downturns. Valuations though attractive have an overhang of falling earnings. The recovery, we believe, will be long and arduous. under the IDFC-CEF - Growth as of 31 October 2008 Asset Allocation 3 Month (Absolute) 6 Month (Absolute) Last 1 Year % % % % % % Last 2 Years % % 5.61% 4.65% 5.66% 4.71% Last 3 Years - Since Inception % 2.03% 2.66% 4.51% 5.19% 6.26% 6.91% 7.24% 8.00% 8.70% 8.71% 10.91% 10.02% IDFC-CEF - Growth BSE Compounded Annualised Growth Rate Benchmark : BSE 200 Consumer Non Durables Power Oil Pharmaceuticals Finance Industrial Capital Goods Auto Telecom - Services Industrial Products Software Diversified Banks 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 guarantee 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 : 1 year or more Risk profile : High Entry load : Purchases of less than Rs. 5 Crores ((including by way of SIP/STP) %, 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 : 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 Inception date : 16 March 2006 Statistical measures : Beta 0.88 R Square 0.93 Standard deviation 2.70% Last dividend (Rs. / unit) : 14 May (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 70.44% / 22.77% / 6.80% Fund manager's comment Most of the companies held in the portfolio have financials that are self sustaining & do not have a significant risk in a down cycle. The investment process revolves around taking a call on where valuations trade & not so much on the evolution of the organisation / company. as of 31 October 2008 Market value in Lac (Rs.) Maruti Suzuki India Ltd Hero Honda Motors Ltd Bajaj Auto Ltd. New Auto Total State Bank of India Ltd HDFC Bank Ltd Punjab National Bank Banks Total Ambuja Cements Ltd Cement Total Larsen & Toubro Ltd Diversified Total Housing Development Finance Co Finance Total Gail India Ltd Gas Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Oil & Natural Gas Corporation Oil Total Reliance Industries Ltd Hindustan Petroleum Corpn. Ltd Indian Oil Corporation Ltd Petroleum Products Total Sun Pharmaceuticals Ltd Pharmaceuticals Total Power Grid Corporation of India Ltd Power Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Corporate Debentures Total Money Market Instrument Total Net Current Asset Grand Total Long Future Total under the IDFC-IEF - Growth as of 31 October 2008 Asset Allocation 3 Month (Absolute) % % 6 Month (Absolute) % % % Last 1 Year % Last 2 Years % % 1.38% -6.35% Since Inception % 1.95% 2.39% 2.77% 3.24% 3.37% 4.35% 4.37% 4.77% 5.92% 10.30% 12.26% 13.59% IDFC-IEF - Growth BSE Compounded Annualised Growth Rate Benchmark : BSE 200 Power Pharmaceuticals Diversified Finance Gas Industrial Capital Goods Cement Oil Software Telecom - Services Auto 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 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. 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 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 : 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. 2,000 Inception date : 28 September 2005 Statistical measures : Beta 0.94 R Square 0.82 Standard deviation 4.30% Last dividend (Rs. / unit) : NA (Rs.): Growth Dividend Asset allocation (equity / debt / cash) : 77.51% / 21.57% / 0.92% 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 81.46% of the portfolio. 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. as of 31 October 2008 Market value in Lac (Rs.) Exide Industries Ltd Motherson Sumi Systems Ltd Auto-ancilliaries Total Axis Bank Ltd Banks Total Madras Cement Ltd Shree Cement Ltd Cement Total Shree Renuka Sugars Ltd Bata India Ltd Kaveri Seed Company Ltd Balrampur Chinni Mills Gokul Refoils & Solvents Ltd Consumer Non Durables Total Blue Dart Express Ltd Courier Total Coromandal Fertilizers Ltd Fertilizers Total Shriram Transport Finance Company Ltd Srei Infrastructure Finance Ltd Finance Total Deep Industries Ltd Gas Total ABG Infralogistics Ltd Industrial Capital Goods Total PTC India Ltd Power Total Pantaloon Retail India Ltd Retailing Total Educomp Solutions Ltd Software Total Page Industries Ltd Textile Products Total M India Ltd Trading Total Time Technoplast Ltd Industrial Product Total IRB Infrastructure Developers Jet Airways Ltd Transportation Others Total Corporate Debentures Total Money Market Instrument Total Net Current Asset Grand Total under the IDFC-PEF - Growth as of 31 October 2008 Asset Allocation 3 Month (Absolute) 6 Month (Absolute) Last 1 Year % 12.85% 4.65% 7.74% 1.43% 14.26% % % % % % % % Last 2 Years - Last 3 Years - Since Inception 0.42% 0.49% 0.82% 1.36% 1.32% 1.40% 1.88% 2.67%3.53% 0.70% 3.55% 3.64% 3.77% 4.07% 4.60% 8.63% 6.45% 7.45% 6.50% IDFC-PEF - Growth BSE Compounded Annualised Growth Rate Benchmark : BSE 200 Chemicals Pharmaceuticals Oil Telecom - Equipment & Accessories Industrial Capital Goods Gas Industrial Products Trading Power Transportation Courier Retailing Cement Textile Products Fertilizers Banks Software Finance Auto-Ancilliaries 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 Statistical measures : R Square 0.15 Standard deviation 0.41% Dividend frequency : When available Last 8 dividends (Rs. / unit) : 07-Mar-08 A Mar-08 B Apr-08 A Apr-08 B May-08 A May-08 B June-08 A June-08 B July-08 A July-08 B Aug-08 A Aug-08 B Sep-08 A Sep-08 B Oct-08 A Oct-08 B (Rs.) : Growth (A) (B) Dividend (A) (B) Asset allocation (equity / debt / cash) : 64.39% / 35.36% / 0.25% Fund manager's comment Sharp sell-off in equity markets affected spreads in the futures market in October. The fund was able to successfully roll-over its futures positions. under the IDFC-AF - Growth as of 31 October % 2.24% IDFC-AF - Growth 3.47% 3.98% CLFI - Compounded Annualised Growth Rate 7.06% Benchmark : CLFI 8.24% 7.69% 7.69% 3 Month (Absolute) 6 Month (Absolute) Last 1 Year Since Inception - as of 31 October 2008 Market Value in Lac (Rs.) Value of Futures 3i Infotech Ltd Allahabad Bank Aptech Ltd Arvind Limited Balrampur Chinni Mills Bank of Baroda Bharat Forge Limited Birla Corporation Ltd Bombay Dyeing & Manu. Co. Ltd Canara Bank Central Bank of India Century Textiles And Ind. Ltd Chennai Petroleum Corp. Ltd Cipla Ltd Dena Bank Development Credit Bank Federal Bank Ltd Gateway Distriparks Ltd Grasim Industries Ltd GTL Ltd Gujarat Alkalies & Chemicals Hindustan Construction Co. Ltd Hindustan Petroleum Corpn. Ltd Hotel Leela Venture Ltd. F.V IBN18 Broadcast Ltd India Cements Limited Indian Hotels Co. Ltd FV Indian Oil Corporation Ltd Industrial Finance Corp of Ind Infrastructure Dev. Finance Co Jaiprakash Associates Ltd. FV Jaiprakash Hydro-power Ltd Kesoram Industries Ltd Lanco Infratech Ltd Mahanager Telephone & Nigam Ltd Maharashtra Seamless Ltd. - FV NIIT Technologies Ltd Oil & Natural Gas Corporation Oracle Financial Services Software Limited Oriental Bank of Commerce Ltd Pantaloon Retail India Ltd. FV Parsvnath Developers Ltd Petronet LNG Ltd Power Finance Corporation Ltd Praj Industries Limited - FV Punj Lloyd Ltd. - FV Punjab National Bank Reliance Capital Limited Reliance Communication Venturs Ltd Reliance Industries Ltd. - Post Merger Reliance Petroleum Ltd S. Kumars Nationwide Ltd Suzlon Energy Ltd. FV Syndicate Bank Tata Iron & Steel Co. Ltd Tata Teleservices Maharashtra Ltd Tech Mahindra Ltd TVS Motor Co. Ltd Ultra Tech Cement Ltd Union Bank of India Vijaya Bank Voltas Limited Welspun Guj St. Ro. Ltd Wire And Wireless (India) Limited Ranbaxy Laboratories Ltd Total Nifty Stock Ambuja Cements Ltd Asea Brown Boveri Ltd. FV Associated Cement Co. Ltd Bharat Heavy Electricals Ltd Bharat Petroleum Corp. Ltd Bharti Airtel Ltd Cairn India Limited DLF Limited Gail India Limited HCL Technologies Ltd HDFC Bank Ltd Hero Honda Motors Ltd Hindalco Industries Ltd Hindustan Unilever Ltd Housing Development Finance Co ICICI Bank Ltd Idea Cellular Limited Infosys Technologies Ltd ITC Limited - FV Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Limited National Aluminium Co. Ltd National Thermal Power Company Power Grid Corporation of India Reliance Infrastructure Ltd Reliance Power Ltd Satyam Computer Services Ltd Siemens Ltd. -FV State Bank of India Ltd Steel Authority of India Ltd Sterlite Industries Ltd. - FV Sun Pharmaceuticals Ltd Tata Communication Ltd Tata Consultancy Services Ltd Tata Motors Ltd Tata Power Company Ltd Unitech Ltd Wipro Limited Zee Entertainment Enterprises Cipla Ltd Grasim Industries Ltd Oil & Natural Gas Corporation Punjab National Bank Ranbaxy Laboratories Ltd Reliance Communication Venturs Ltd Reliance Industries Ltd. - Post Merger Reliance Petroleum Ltd Suzlon Energy Ltd. FV Tata Iron & Steel Co. Ltd Nifty Stock / Nifty Futures Final Total Bank Deposit Total Corporate Debentures Total Money Market Instrument 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 29 October 2008 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 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. 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 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. Options available : Growth, Dividend Minimum investment amount : Rs. 5,000 Additional investment amount : Re. 1 Inception date : 9 June 2006 Statistical measures : Beta 0.78 R Square 0.85 Standard deviation 1.90% Last dividend (Rs. / unit) : 14 May (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 83.72% / 14.69% / 1.60% Fund manager's comment We have used the primary markets to deliver out performance and have used the IPO route to buy into issues which trade at a discount to historical valuations. In recent times the primary market pipeline has been quite and we have not seen any large issuances. as of 29 October 2008 Market value in Lac (Rs.) State Bank of India Ltd HDFC Bank Ltd ICICI Bank Ltd DLF Ltd ITC Ltd Hindustan Unilever Ltd Larsen & Toubro Ltd Steel Authority of India Ltd Housing Development Finance Co Gail India Ltd Bharat Heavy Electricals Ltd Oil & Natural Gas Corporation Cairn India Ltd Reliance Industries Ltd Reliance Petroleum Ltd Sun Pharmaceuticals Ltd National Thermal Power Company Power Grid Corporation of India Ltd Reliance Power Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd Wipro Ltd Bharti Airtel Ltd Reliance Communication Ventures Ltd Nifty Others Total Bank Deposit Total Cash Equivalent Total Corporate Debentures Total Money Market Instrument Total Net Current Asset Grand Total Long Future Total under the IDFC-EEF - Growth as of 29 October 2008 Asset Allocation Data as of 29 October Month (Absolute) 6 Month (Absolute) Last 1 Year - Last 2 Years - Since Inception % -9.93% % % 9.22% 9.54%10.01% 8.26% 7.40% 11.51% % % % % % % 2.97% 1.36% 1.39% 1.78% 1.86% 2.13% 2.20% 2.35% 2.52% 0.31% 4.29% 4.62% IDFC-EEF - Growth BSE Compounded Annualised Growth Rate Benchmark : BSE 200 Media & Entertainment Gas Cement Construction Non Ferrous Metals Pharmaceuticals Finance Auto Ferrous Metal Consumer Non Durables Industrial Capital Goods Diversified Banks Oil Telecom - Services Power Software Petroleum Products 8

9 IDFC Tax Saver (ELSS) Fund (IDFC-TS[ELSS]) A 10 year closed ended Equity Linked Saving Scheme as of 31 October 2008 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 equityrelated securities. 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 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. Options available : Growth, Dividend Minimum investment amount : Rs. 500 Additional investment amount : Rs. 500 Inception date : 15 March 2007 Statistical measures : Beta 0.87 R Square 0.90 Standard deviation 3.64% Dividend frequency : NA Last dividend (Rs. / unit) : NA (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 84.32% / 8.21% / 7.46% Fund manager s comment Market value in Lac (Rs.) Madras Cement Ltd Cement Total Maruti Suzuki India Ltd Hero Honda Motors Ltd Auto Total HDFC Bank Ltd State Bank of India Ltd Banks Total Hindustan Unilever Ltd Larsen & Toubro Ltd Diversified Total Housing Development Finance Co Power Finance Corporation Ltd Finance Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Time Technoplast Ltd Everest Kanto Cylinder Ltd Sintex Industries Ltd Industrial Products Total Oil & Natural Gas Corporation Oil Total Reliance Industries Ltd Hindustan Petroleum Corpn. Ltd Reliance Petroleum Ltd Petroleum Products Total Sun Pharmaceuticals Ltd Pharmaceuticals Total National Thermal Power Company Power Total Satyam Computer Services Ltd Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Others Total Money Market Instrument Total Net Current Asset Grand Total We had mentioned in our last month s commentary that the global credit crisis and accompanying financial turmoil is expected to result in a sharp slowdown in world GDP growth. The International Monetary Fund (IMF) in its latest report has slashed growth projections for the world economy and predicted that the United States- the epicenter of financial meltdown- will continue to lose traction. IMF has projected that global growth which was 5% in CY07 will slide sharply to 3.9% in CY08 and plummet further to less than 3% in CY09 the worst showing since IMF regards a global growth figure of 3% or less as recession. The resultant demand destruction in commodities like oil, ferrous and non-ferrous metals has lead to severe erosion in their prices. We are underweight in metals. As we had predicated this has helped abate inflationary concerns globally and allowed central banks to pursue aggressive monetary easing through cuts in interest rates. We saw aggressive cuts in rates from Central Banks in the US, China, Japan, Taiwan etc. The European Central Bank and Bank of England are expected to follow suit in their meetings scheduled later this week. Domestically inflation has shown marked slowdown and is now widely expected to come into single digits in next couple of months. To address fears of sharp slowdown in the economy and liquidity concerns due to sharp spike in overnight rates the RBI come out all guns blazing and lowered CRR, SLR and repurchase rates. It also allowed banks to lend to address liquidity concerns of NBFC s and MF s by providing a special window to borrow. Over the last month approximately Rs crores has been pumped up by the RBI into the system to address the squeeze in liquidity. We expect this massive infusion of liquidity and lowering of rates to send a strong signal to the financial intermediaries to lower the lending rates. This lowering of rates would act as a spur to revive consumption lead demand initially and investment demand overtime. We expect this to positively impact banks, automobiles and capital goods and are overweight in these sectors. Large outflows of FII money have put pressure on rupee and it has depreciated by over 20% since its low last year. This should ideally have helped provide fillip to our exports but a severely contracting global economy has negated any hopes of that. In these times of global uncertainties we continue to be cautious and hold on with our philosophy to gravitate towards large, liquid companies that have strong balance sheets, low leverage, less reliance on external capital raisings to fund their growth over the medium term and demonstrated their resilience to survive & thrive in previous economic downturns. Valuations though attractive have an overhang of falling earnings. The recovery, we believe, will be long and arduous. under the IDFC-TS[ELSS]F - Growth as of 31 October 2008 Asset Allocation 3 Month (Absolute) 6 Month (Absolute) Last 1 Year Since Inception % 11.01% 9.14% 9.32% 9.72% % % % % % % % % 0.58% 2.51% 3.09% 3.20% 3.61% 3.75% 3.77% 5.25% 6.33% IDFC-TS(ELSS) - Growth BSE 200 Benchmark : BSE 200 Consumer Non Durables Cement Oil Power Industrial Capital Goods Telecom - Services Pharmaceuticals Finance Diversified Software Auto Industrial Products 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 aims 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 derivative strategies. Risk profile : Low Entry load : Nil Exit load : 0.25% up to 3 month from the date of investment in Plan A & 0.25% upto 1 month from the date of investment in Plan B. Exit Load shall be Nil beyond 3 month for Plan A & 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 : R Square 0.09 Standard deviation 1.01% Dividend frequency : When available (Rs.) : Growth (A) (B) Dividend (A) (B) Asset allocation (equity / debt / cash) : 67.66% / 36.95% / -4.60% Fund manager s comment Sharp sell-off in equity markets affected spreads in the futures market in October. The fund was able to successfully roll-over its futures positions related to arbitrage. Apart from arbitrage, the fund successfully participated in open offers and pair trades. under the IDFC-APF - Growth as of 31 October % IDFC-APF - Growth 2.24% CLFI Benchmark : CLFI 3.89% 3.27% 3 Month (Absolute) Since Inception - (Absolute) as of 31 October 2008 Market Value in Lac (Rs.) Value of Futures Arvind Limited Balrampur Chinni Mills Bajaj Hindustan Ltd Century Textiles and Ind. Ltd Chennai Petroleum Corp. Ltd Dena Bank Development Credit Bank IBN18 Broadcast Ltd Grasim Industries Ltd GTL Ltd Hindustan Construction Co. Ltd Hindalco Industries Ltd Hindustan Oil Exploration Co. Ltd Hindustan Petroleum Corpn. Ltd Idea Cellular Limited Infrastructure Dev. Finance Co Oracle Financial Services Software Limited India Cements Limited Ispat Industries Limited Lakshmi Machine Works Limited Neyveli Lignite Corp. Ltd Oil & Natural Gas Corporation Pantaloon Retail India Ltd. FV Parsvnath Developers Ltd Petronet LNG Ltd Power Finance Corporation Ltd Ranbaxy Laboratories Ltd Reliance Communication Venturs Ltd Reliance Capital Limited Reliance Infrastructure Ltd Reliance Industries Ltd. - Post Merger S. Kumars Nationwide Ltd Shree Renuka Sugars Ltd FV Syndicate Bank Tata Teleservices Maharashtra Ltd Ultra Tech Cement Ltd Union Bank of India Vijaya Bank Welspun Guj. St. Ro. Ltd Wire And Wireless (india) Limited Show Wallace / United Spirits Ltd Apollo Sindhoori Capital Inv Total Asea Brown Boveri Ltd. FV Associated Cement Co. Ltd Bharat Heavy Electricals Ltd Bharat Petroleum Corp. Ltd Bharti Airtel Ltd Cairn India Limited Cipla Ltd DLF Limited State Bank of India Ltd Gail India Limited Ambuja Cements Ltd HCL Technologies Ltd HDFC Bank Ltd Housing Development Finance Co Hero Honda Motors Ltd Hindustan Unilever Ltd ICICI Bank Ltd Infosys Technologies Ltd ITC Limited - FV Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Limited National Aluminium Co. Ltd National Thermal Power Company Power Grid Corporation of India Punjab National Bank Reliance Petroleum Ltd Reliance Power Ltd Satyam Computer Services Ltd Steel Authority of India Ltd Siemens Ltd - FV Sterlite Industries Ltd - FV Suzlon Energy Ltd. FV Sun Pharmaceuticals Ltd Tata Consultancy Services Ltd Tata Iron & Steel Co. Ltd Tata Motors Ltd Tata Power Company Ltd Unitech Ltd Tata Communication Ltd Wipro Limited Zee Entertainment Enterprises 5.71 Grasim Industries Ltd Hindalco Industries Ltd Idea Cellular Limited Oil & Natural Gas Corporation Ranbaxy Laboratories Ltd Reliance Communication Ventures Ltd Reliance Infrastructure Ltd Reliance Industries Ltd. - Post Merger Nifty Stock / Nifty Futures Final Total Bank Deposit Total Money Market Instrument 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 29 October 2008 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 stocks 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 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 Regulations. 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 Statistical measures : Beta 0.63 R Square 0.88 Standard deviation 2.49% Dividend frequency : NA (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 66.25% / 19.36% / 14.40% 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. as of 29 October 2008 Market value in Lac (Rs.) Engineers India Limited Engineering Total Ashok Leyland Ltd Eicher Motors Ltd Auto Total Bank of India Union Bank of India HDFC Bank Ltd Banks Total Shree Cement Ltd India Cements Ltd Cement Total Punj Lloyd Ltd Construction Total Rural Electrification Corp. Ltd Power Finance Corporation Ltd Finance Total Mcnally Bharat Engineering Company Ltd Bharat Electronics Ltd Industrial Capital Goods Total Electrosteel Castings Limited Industrial Products Total Nava Bharat Ventures Ltd Non Ferrous Metals Total Oil & Natural Gas Corporation Oil Total Hindustan Petroleum Corpn. Ltd Reliance Industries Ltd Petroleum Products Total IPCA Laboratories Limited Pharmaceuticals Total Reliance Infrastructure Ltd Power Total Mundra Port And Special Economic Zone Ltd Shipping Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Telecom - Services Total IRB Infrastructure Developers Transport Others Total Bank Deposit Total Corporate Debentures Total Money Market Instrument Total Net Current Asset Grand Total Long Future Total Short Future Total under the IDFC-SMEF - Growth as of 29 October 2008 Asset Allocation Data as of 29 October Month (Absolute) 6 Month (Absolute) Since Inception - (Absolute) 10.50% % % IDFC-SMEF - Growth % % % CNX Midcap Benchmark : CNX Midcap % 4.39%4.54% 5.09% 2.82% 3.15%3.18% 3.46% 2.08% 2.62% 2.81% 0.99% 1.14% 1.38%1.76% 1.92% 0.33% 0.46% Diversified Consumer Non Durables Chemicals Industrial Products Telecom - Services Shipping Engineering Pharmaceuticals Auto Construction Oil Non Ferrous Metals Power Transport Industrial Capital Goods Software Cement 6.46% 7.18% Finance Petroleum Products Banks 11

12 IDFC Strategic Sector (50-50) Equity Fund IDFC Strategic Sector (50-50) Equity Fund 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 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. Risk profile : High Entry load : During the NFO Period and Ongoing Offer Period Load ( Rs. 10 or *Entry Load: For Purchases / switch ins Applicable, as the case may be) 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 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. 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, IDFC Fixed Maturity Arbitrage Fund Series 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 Load ( Applicable ) 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 ) 1.00% 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 Dividend frequency : NA (Rs.) : Growth Dividend Asset allocation (equity / debt / cash) : 77.03% / 15.71% / 7.27% Fund manager s comment : Conceptually the fund is built around allocating 50 its portfolio to one sector. We believe the beneficiary of the current environment is the financial sector. The sector has a very large breadth of choice in companies which operate both in the institutional and the retail space. We have built the portfolio accordingly with 50 the invested portfolio in the quality large cap financial services companies. The remainder of the portfolio is diversified large cap portfolio. The Strategic Sector Fund would tend to have a higher beta because of the sector concentration. under the IDFC Strategic Sector (50-50) Equity Fund - Growth as of 31 October 2008 as of 31 October 2008 Market value in Lac (Rs.) Maruti Suzuki India Ltd Hero Honda Motors Ltd Auto Total HDFC Bank Ltd State Bank of India Ltd Punjab National Bank Axis Bank Ltd Bank of India Kotak Mahindra Bank Banks Total Ambuja Cements Ltd Cement Total Hindustan Unilever Ltd Larsen & Toubro Ltd Diversified Total Power Finance Corporation Ltd Housing Development Finance Co Finance Total Gail India Ltd Gas Total Bharat Heavy Electricals Ltd Industrial Capital Goods Total Reliance Industries Ltd Hindustan Petroleum Corpn. Ltd Petroleum Products Total Sun Pharmaceuticals Ltd Pharmaceuticals Total Infosys Technologies Ltd Software Total Bharti Airtel Ltd Reliance Communication Ventures Ltd Telecom - Services Others Total Money Market Instrument Total Net Current Asset Grand Total Long Future Total Short Future Total Asset Allocation Since Inception - (Absolute) 27.85% % % 0.65% 1.99% 3.56% 3.71% 4.23% 4.49% 4.81% 5.17% 5.37% 7.15% 8.06% IDFC Strategic Sector (50-50) Equity Fund Growth Benchmark : S&P CNX Nifty S&P CNX Nifty Power Gas Industrial Capital Goods Cement Pharmaceuticals Software Petroleum Products Diversified Auto Telecom - Services Finance Banks 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 : Nil 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) : in Plan A Rs. 1,000 Inception date : 14 July 2000 Average maturity : days Dividend frequency : Quarterly, Half Yearly, Annually Last 3 dividends : Date Freq. Others I & H IDFC-SSIF-IP Plan A 30-Sep Half Yearly Sep Quarterly (Rs.) : Plan A Quarterly Plan A Growth Plan A Dividend Annual Plan A Half Yearly Fund manager's comment The fund actively managed duration to take advantage of the movement in interest rates. The fund captured fall in interest rates by investing in long dated government bonds. The fund was underweight corporate bonds given the negative view on credit spreads. The fund will actively monitor the dynamic interest rate and credit spread environment to optimize performance. Benchmark : Crisil Composite Bond Fund Index (CCBFI) as of 31 October 2008 Exim Bank AAA Canara Bank A CP and CD Total Irfc AAA 2.20 PSU Bonds / FI - Floating Total 2.20 Treasury Bill SOVR 0.11 Treasury Bill Total % Goi 22/04/2018 SOVR GOI %, 2032 SOVR G-Secs Total Net Current Asset Asset allocation as of 31 October Call / Reverse Repo / CBLO -5.21% 2 CP & CD 13.47% 3 Floating Bonds 2.20% 4 G-Secs 89.43% 5 Money Market (BR and T-Bill) 0.11% 4 IDFC-SSIF-IP Growth as of 31 October % 8.47% 6.93% 8.41% 2.98% 4.58% 4.17% 4.75% 3.49% 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 : Nil 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) : in Plan A Rs. 1,000 Inception date : 25 June 2002 Average maturity : days Dividend frequency : Quarterly & Annually Last 3 dividends : Date Freq. Others I & H IDFC-DBF Plan A 30-Sep Quarterly (Rs.) : Plan A Growth Plan A Dividend Annual Plan A Dividend Quarterly Fund manager's comment The fund actively managed duration to take advantage of the movement in interest rates. The fund increased long government bond exposure as government bond yields fell and stayed out of credit spreads given the uncertainty in the credit markets The fund will continue to proactively study the macro environment for optimum results. Benchmark : Crisil Composite Bond Fund Index (CCBFI) as of 31 October 2008 Reliance Infratel Ltd. A CP and CD Total % GOI 22/04/2018 Sovr GOI %, 2032 Sovr G-Secs Total Net Current Asset 3.77 Asset allocation as of 31 October Call / Reverse Repo / CBLO 3.77% 2 CP & CD 13.36% 3 G-Secs 82.87% 3 IDFC-DBF - Growth as of 31 October % 2.98% 9.52% 8.09% 4.58% 4.17% 5.96% 3.49% 7.54% 5.33% 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 as of 31 October 2008 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 : 180 days or more Risk profile : Medium Entry load : Nil Exit load : 0.50 shall be the exit load payable by investors who purchase / switch in and seek to redeem / switch out such units within 180 days from the date of effecting such purchase/switch in. Investors opting for Dividend reinvestment option / SWP or switch between options will not be levied an exit load. 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) : in Plan A Rs Inception date : 8 July 2003 Average maturity : days Dividend frequency : Bi-monthly, Monthly, Fortnightly & Daily Last 3 dividends : Date Freq. Others I & H IDFC-SSIF-MT Plan A 27-Oct Daily Oct Daily Oct Daily Oct Fortnightly Oct Fortnightly Oct Monthly (Rs.) : Plan A Growth Plan A Dividend Bi-monthly Plan A Dividend Fortnightly Plan A Dividend Monthly Plan A Dividend Daily Fund manager's comment The short end of the credit curve has seen extreme volatility given the liquidity strain in the system. The fund maintains a high credit quality portfolio and is invested in the most liquid of assets. Asset allocation Benchmark : CRISIL Short-Term Bond Fund Index (CSTBFI) as of 31 October 2008 CBLO NONE 1.52 CBLO Total 1.52 UBL Trust -series 53 F1+ (SO) 9.71 Corporate Debentures Total 9.71 HDFC Bank Ltd. AAA Exim Bank AAA IDBI Bank Limited A State Bank of India Ltd. P State Bank of Patiala P Kotak Mahindra Bank P CP and CD Total Power Finance Corporation Ltd. AAA(SO) PSU Bonds / FI - Fixed Total Net Current Asset Call / Reverse Repo / CBLO 1.84% 2 CP & CD 67.13% 3 Fixed Bonds 31.04% 2 IDFC-SSIF-MT - Growth as of 31 October % 6.11% 6.63% 6.75% 6.46% 6.17% 5.12% 5.26% 5.34% 5.37% Last 1 Year Last 2 Years IDFC-SSIF-MT - Growth CSTBFI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 08/07/

16 IDFC Super Saver Income Fund - Short Term Plan (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 : 60 days or more Risk profile : Medium Entry load : Nil Exit load : Nil Options available : Growth, Dividend 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), Rs and in multiples of Re. 1 in Plan D (MF Plan). Additional investment amount : Re.1 SIP (minimum amount) : in Plan A Rs Inception date : 14 December 2000 Average maturity : days Dividend frequency : Monthly, Fortnightly Last 3 dividends : Date Freq. Others I & H IDFC-SSIF-ST Plan A 13-Oct Fortnightly IDFC-SSIF-ST Plan B 13-Oct Fortnightly IDFC-SSIF-ST Plan C 13-Oct Fortnightly (Rs.) : Plan A Growth Plan A Dividend Monthly Plan D Growth Plan D Dividend Monthly Plan B Dividend Monthly Plan C Dividend Monthly Plan A Dividend Fortnightly Plan C Dividend Fortnightly Fund manager's comment The short end of the credit curve has seen extreme volatility given the liquidity strain in the system. The fund maintains a high credit quality portfolio and is invested in the most liquid of assets. Benchmark : CRISIL Short-Term Bond Fund Index (CSTBFI) as of 31 October 2008 Clearing Corporation of India None 2.48 Bank Deposits - Fixed Total 2.48 Bennett, Coleman & Co. Ltd. P1+ (SO) Corporate Debentures Total Exim Bank AAA Reliance Infratel Ltd. A HDFC Bank Ltd. AAA Corporation Bank P IDBI Bank Limited A State Bank of Patiala A CP and CD Total Net Current Asset 2.65 Asset allocation as of 31 October Bank Deposit - Fixed 2.48% 2 Call / Reverse Repo / CBLO 2.65% 3 CP & CD 70.04% 4 Fixed Bonds 24.83% 3 IDFC-SSIF-ST - Growth as of 31 October % 5.26% 7.05% 6.75% 6.55% 6.17% 5.71% 5.26% 6.62% Last 1 Year IDFC-SSIF-ST - Growth Last 2 Years CSTBFI Last 3 Years - Compounded Annualised Growth Rate Last 5 Years Since Allotment 14/12/

17 IDFC Cash Fund (IDFC-CF) An Open - Ended Liquid Fund Nature : Liquid fund Fund size : Rs Crore Fund manager : Rajiv Anand 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 : Parking of idle funds with minimal interest rate risk. 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 Average maturity : days Dividend frequency : Daily, Weekly with compulsory re-investment, Periodic (in Plan B only) and Monthly (in Plan C only). Last 3 dividends : Date Freq. Others I & H IDFC-CF Plan A 31-Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly IDFC-CF Plan B 31-Oct Daily Oct Daily Oct Daily Oct Weekly IDFC-CF Plan C 31-Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly (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 Plan C Dividend (SIP ) Weekly Fund manager's comment The scheme is well positioned for a period of anticipated liquidity tightness enabling it to deliver returns while managing the flows. Benchmark : Crisil Liquid Fund Index (CLFI ) as of 31 October 2008 CBLO None 0.06 CBLO Total 0.06 Vodafone Essar Company Ltd. F1+ (SO) 7.13 Small Operators Trust 2008-a1 F1+(IND)(SO) 5.11 UBL Trust - Series 53 F1+ (SO) 4.64 LIC Housing Finance Ltd. AAA 4.24 RB Loan Trust Series XIII - A3 P1+ (SO) 3.94 Raymond Ltd. PR Housing Development Finance Co. AAA 3.23 Axis Bank Limited LAA SREI Infrastructure Finance Ltd. PR Kotak Mahindra Prime Ltd. P1+ (SO) 2.39 Bennett, Coleman & Co. Ltd. P1+ (SO) 1.80 IDBI Bank Ltd. AA Mahindra & Mahindra Finance AA Corporate Debentures Total Yes Bank Ltd. A ICICI Bank Ltd. A Housing Development Finance Co. P Hongkong & Shanghai Bkg Corpn A Allahabad Bank A ABN Amro Bank NV A IDBI Bank Limited A Edelweiss Capital Ltd. P State Bank of Mysore A I L & F S A State Bank of Patiala A ICICI Securities Ltd. P Corporation Bank A ICICI Bank Ltd. P Punjab National Bank F Federal Bank Ltd. A Reliance Infratel Ltd. A Karnatak Bank Ltd. P UCO Bank P Exim Bank AAA 0.33 Corporation Bank P State Bank of India Ltd. P Jammu & Kashmir Bank Limited P Ing Vysya Bank P Kotak Mahindra Bank P Cp And Cd Total Housing Development Finance Co. AAA 5.69 Mibor Linked Bonds Total 5.69 Exim Bank AAA 3.59 Union Bank of India AA National Housing Bank AAA 2.52 IRFC AAA 2.01 ICICI Bank Ltd AAA(SO) 0.04 Psu Bonds / FI - Fixed Total Infrastructure Dev Finance Co. AAA 2.51 LIC Housing Finance Ltd. AAA 1.79 Psu Bonds / FI - Floating Total 4.31 Net Current Asset Asset allocation as of 31 October IDFC-CF - Growth as of 31 October Call / Reverse Repo / CBLO -5.08% 2 CP & CD 40.97% 3 Fixed Bonds 54.11% 4 Floating Bonds 10.00% 7.31% 7.69% 7.50% 6.85% 6.47% 6.95% 5.73% 5.87% 5.98% Last 1 Year IDFC-CF - Growth Last 2 Years CLFI Last 3 Years - Compounded Annualised Growth Rate 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 : Rajiv Anand 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 year or more Risk profile : Low Entry load : Nil Exit load : Exit Load: 0.25 in case of investors who seek to redeem / switch out units before 1 month from the date of effecting purchase / switch in. No exit load shall be charged incase of SWP/STP from IDFC-LM to any other schemes of the Mutual Fund. No exit load shall be charged incase of switches between Plans/Options within the scheme. (There will be no load applicable incase of dividend reinvestment). With effect from august 1, 2008 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 Average maturity : 1 day Dividend frequency : Daily with compulsory re-investment, Weekly with compulsory re-investment and Monthly. Last 3 dividends : Date Freq. Others I & H 31-Oct Daily Oct Daily Oct Daily Oct Monthly Oct Weekly Oct Weekly Oct Weekly (Rs.) : Growth Dividend Daily Dividend Weekly Dividend Monthly Fund manager's comment The scheme is invested with short maturity instruments in line with its objectives. Benchmark : Crisil Liquid Fund Index (CLFI ) as of 31 October 2008 CBLO None 0.10 CBLO Total 0.10 Net Current Asset Asset allocation as of 31 October Call / Reverse Repo / CBLO 100% IDFC-LM - Growth as of 31 October % 7.43% 7.50% 7.11% 6.68% 6.43% Last 1 Year IDFC-LM - Growth CLFI Last 2 Years - Compounded Annualised Growth Rate Since Allotment 17/01/

19 IDFC Liquid Fund (IDFC-LF) An Open - Ended Liquid Fund Nature : Liquid fund Fund size : Rs Crore Fund manager : Rajiv Anand 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 year 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 Average maturity : days Dividend frequency : Daily & Weekly (with Compulsory reinvestment) / Monthly Last 3 dividends : Date Freq. Others I & H IDFC-LF 31-Oct Daily Oct Daily Oct Daily Oct Monthly Oct Weekly Oct Weekly Oct Weekly (Rs.) : Growth Dividend Daily Dividend Weekly Dividend Monthly Face value (Rs. / unit) : 1,000 Fund manager's comment The scheme has an extremely liquid profile with anticipations of volatile liquidity conditions on account of the external environment. Benchmark : Crisil Liquid Fund Index (CLFI ) as of 31 October 2008 Clearing Corporation of India None 2.62 Bank Deposits - Fixed Total 2.62 CBLO None 0.26 Cblo Total 0.26 Mahindra & Mahindra Finance AA Corporate Debentures Total 1.05 Reliance Infratel Ltd. A ICICI Bank Ltd. P Reliance Capital Limited A UCO Bank P IDBI Bank Limited A Karnatak Bank Ltd. P Canara Bank A CP and CD Total Hindustan Petroleum Corpn. Ltd. P1+ (SO) 0.40 Psu Bonds / FI - Fixed Total 0.40 Irfc AAA IDBI Bank Ltd. AA Infrastructure Dev. Finance Co. AAA 6.63 Psu Bonds / FI - Floating Total Net Current Asset Asset allocation as of 31 October Bank Deposit - Fixed 2.62% 2 Call / Reverse Repo / CBLO -2.29% 3 CP & CD 44.84% 4 Fixed Bonds 1.44% 5 Floating Bonds 53.39% 4 IDFC-LF - Growth as of 31 October % 7.69% 7.89% 7.50% 7.67% 7.24% Last 1 Year IDFC-LF - Growth CLFI Last 2 Year - 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 : Rajiv Anand 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 instruments including floating rate instruments with short term benchmarks. The Scheme seeks to generate returns predominantly through accrual income. Ideal investment horizon : Protects investments in rising interest rate environment Risk profile : Medium 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 Inception date : 18 Feb 2003 Average maturity : days Dividend frequency : Monthly & Daily/ Weekly with compulsory reinvestment Last 3 dividends : Date Freq. Others I & H IDFC-LPF-TP Plan A 31-Oct Daily Oct Daily Oct Daily Oct Monthly Oct Weekly Oct Weekly Oct Weekly IDFC-LPF-TP Plan B 31-Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly IDFC-LPF-TP Plan C 31-Oct Daily Oct Daily Oct Daily (Rs.) : Plan A Growth Plan A Dividend Monthly Plan B Growth Plan B Dividend Daily Plan B Dividend Weekly Plan A Dividend Daily Plan A Dividend Weekly Plan C Growth Plan C Dividend Daily Plan C Dividend Weekly Fund manager's comment The scheme has an extremely liquid profile with anticipations of volatile liquidity conditions on account of the external environment. Benchmark : NSE MIBOR INDEX as of 31 October 2008 Srei Infrastructure Finance Ltd. PR Kotak Mahindra Prime Ltd. P1+ (SO) 3.48 LIC Housing Finance Ltd. AAA 1.94 Corporate Debentures Total Reliance Capital Limited A Cholamandalam Dbs & Finance Ltd. A Punjab National Bank F ICICI Bank Ltd. A Karnatak Bank Ltd. A Rabo India Finance Limited P State Bank of Bikaner & Jaipur P Godrej Industries A IDBI Bank Limited A Kotak Mahindra Bank P I L & F S A Federal Bank Ltd. A Oriental Bank of Commerce Ltd. P State Bank of Hyderabad P ABN Amro Bank NV A ICICI Bank Ltd. P Federal Bank Ltd. P ICICI Securities Ltd. P Housing Development Finance Co. A Canara Bank P Allahabad Bank A Housing Development Finance Co. P Tata Motors Ltd. P State Bank of Patiala P CP and CD Total Housing Development Finance Co. AAA 4.47 Mibor Linked Bonds Total 4.47 Net Current Asset Asset allocation as of 31 October IDFC-LPF-TP - Growth as of 31 October Call / Reverse Repo / CBLO -0.58% 2 CP & CD 83.48% 3 Fixed Bonds 12.62% 4 Floating Bonds 4.47% 8.37% 7.12% 7.52% 7.17% 6.62% 6.34% 6.26% 5.74% 6.13% 5.70% Last 1 Year IDFC-LPF-TP - Growth Last 2 Years Last 3 Years NSE MIBOR - Compounded Annualised Growth Rate Last 5 Years 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 : Rajiv Anand 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 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 : Protects investments in rising interest rate environment Risk profile : Medium 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). Additional investment amount : Re.1 SIP (minimum amount) : Rs (Plan A) Inception date : 9 August 2004 Average maturity : days Dividend frequency : Daily & Weekly^ (with reinvest facility in both Plan A & Plan B), Monthly, Quarterly & Annual. Last 3 dividends : Date Freq. Others I & H IDFC-LPF-IP Plan A 31-Oct Daily Oct Daily Oct Daily Oct Monthly Oct Weekly Oct Weekly Oct Weekly IDFC-LPF-IP Plan B 31-Oct Daily Oct Daily Oct Daily Oct Monthly Oct Weekly Oct Weekly Oct Weekly (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Annual Plan B Growth Plan B Dividend Quarterly Plan A Dividend Monthly Plan B Dividend Monthly Plan B Dividend Weekly Plan B Dividend Daily Plan A Dividend Daily Plan A Dividend Weekly Fund manager's comment The floating rate fund is invested in short maturity money market instruments which will help the fund in current period of tight liquidity. Benchmark : NSE MIBOR INDEX as of 31 October 2008 Asset allocation as of 31 October Clearing Corporation of India None 2.52 Bank Deposits - Fixed Total 2.52 CBLO None 0.15 CBLO Total 0.15 UBL Trust -series 53 F1+ (SO) RB Loan Trust Series XIII - A3 P1+ (SO) 1.99 Small Operators Trust 2008-A1 F1+(IND)(SO) 1.76 ICICI Bank Ltd. LAAA(SO) 0.66 LIC Housing Finance Ltd. AAA 0.28 Corporate Debentures Total ICICI Bank Ltd. AAA 4.19 Corporate Debentures-floating Total 4.19 Reliance Capital Limited A Reliance Infratel Ltd. A IDBI Bank Limited A Cholamandalam Dbs & Finance Ltd. A ICICI Bank Ltd. A ICICI Securities Ltd. P Kotak Mahindra Bank P CP and CD Total Irfc AAA 1.68 Hindustan Petroleum Corpn. Ltd. P1+ (SO) 0.64 Psu Bonds / FI - Fixed Total 2.32 Infrastructure Dev Finance Co. AAA 6.99 Irfc AAA 0.84 Psu Bonds / FI - Floating Total 7.83 Net Current Asset 2.48 IDFC-LPF-IP - Growth as of 31 October Bank Deposit - Fixed 2.52% 2 Call / Reverse Repo / CBLO 2.63% 3 CP & CD 51.49% 4 Fixed Bonds 31.33% 5 Floating Bonds 12.03% 7.94% 8.37% 7.77% 7.52% 6.86% 7.17% 6.42% 6.57% Last 1 Year IDFC-LPF-IP - Growth Since Allotment Last 2 Years Last 3 Years 09/08/2004 NSE MIBOR - Compounded Annualised Growth Rate 21

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 is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in 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 : Nil 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 (Plan A) Inception date : 9 March 2002 Average maturity : days Dividend frequency : Quarterly/ Half yearly/ Yearly. Last 3 dividends : Date Freq. Others I & H IDFC-GSF-IP Plan A 30-Sep Quarterly Sep Half Yearly March Yearly (Rs.) : Plan A Growth Plan A Quarterly Plan A Half Yearly Plan A Annual Fund manager's comment ) The average maturity of the portfolios were increased to capture interest rate falls. The funds will try and position themselves in the segment of the yield curve where returns will be optimum. Benchmark : ISEC Composite Index as of 31 October 2008 CBLO None CBLO Total % GOI 22/04/2018 Sovr GOI %, 2032 Sovr 9.32 G-Secs Total Net Current Asset Asset Allocation as of 31 October Call / Reverse Repo / CBLO 1.88% 2 G-Secs 98.12% 2 IDFC-GSF-IP - Growth as of 31 October % 9.45% 9.07% 8.43% 7.93% 7.20% 5.32% 5.39% 7.35% Last 1 Year IDFC-GSF-IP - Growth Last 2 Years 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 is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in 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 : 60 days or more Risk profile : Low Entry load : Nil Exit load : Nil Options available : Growth, Dividend Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 Additional investment amount : Re.1 SIP (minimum amount) : Rs (Plan A) Inception date : 9 March 2002 Average maturity : 5.85 days Dividend frequency : Quarterly/ Monthly. Last 3 dividends : Date Freq. Others I & H IDFC-GSF-ST Plan A 30-April Monthly May Monthly (Rs.) : Plan A Growth Plan A Monthly Plan A Quarterly Benchmark : ISEC Composite Index as of 31 October 2008 CBLO None CBLO Total Treasury Bill SOVR Treasury Bill Total Net Current Asset Asset Allocation as of 31 October Call / Reverse Repo / CBLO 78.38% 2 Money Market (BR & T-Bill) 21.62% 1 IDFC-GSF-ST - Growth as of 31 October % 8.43% 7.20% 1.14% 3.73% 3.75% 2.93% 5.39% 4.35% Last 1 Year IDFC-GSF-ST - Growth Last 2 Years ISCI Last 3 Years - 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 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 : Nil Options available : Growth, Dividend Minimum investment amount : Rs. 5,000 and in multiples of Re. 1 in Plan A (Regular Plan), Rs. 25,00,001 and in multiples of Re.1 in Plan B (Institutional Plan). Additional investment amount : Re.1 SIP (minimum amount) : Rs (Plan A) Inception date : 29 March 2004 Average maturity : days Dividend frequency : Quarterly/ Yearly. Last 3 dividends : Date Freq. Others I & H IDFC-GSF-PF Plan A 30-Sep Quarterly IDFC-GSF-PF Plan B 30-Sep Quarterly (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan B Growth (IP ) Plan B Quarterly (IP ) Plan A Dividend Annual Fund manager's comment The average maturity of the portfolios were increased to capture interest rate falls. The funds will try and position themselves in the segment of the yield curve where returns will be optimum. Benchmark : ISEC Composite Index as of 31 October 2008 CBLO None 5.47 CBLO Total % GOI 22/04/2018 Sovr GOI %, 2032 Sovr G-Secs Total Net Current Asset 0.26 Asset Allocation as of 31 October Call / Reverse Repo / CBLO 5.72% 2 G-Secs 94.28% 2 IDFC-GSF-PF - Growth as of 31 October % 9.45% 10.10% 8.43% 8.78% 7.20% 6.30% 5.38% 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 : Nil 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 Dividend frequency : Quarterly, Half Yearly & Annual Last 3 dividends : Date Freq. Others I & H IDFC-ASB Plan A 30-Sep Quarterly Sep Half Yearly (Rs.) : Plan A Growth Plan A Dividend Quarterly Plan A Dividend Half Yearly Plan A Dividend Annual 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 Fund. Benchmark : Crisil Composite Bond Fund Index (CCBFI ) as of 31 October 2008 CBLO None 2.52 CBLO Total 2.52 IDFC Dynamic Bond Fund IDFC Super Saver Income Fund - Investment Plan IDFC Government Securities Fund - PF Plan IDFC Super Saver Income Fund - Medium Term Fund Investment in MF Units Total Net Current Asset Asset allocation as of 31 October Call / Reverse Repo / CBLO 2.31% 2 Mutual Fund 97.69% 2 IDFC-ASBF - Growth as of 31 October % 8.28% 7.40% 6.68% 2.98% 4.58% 4.17% 4.35% Last 1 Year IDFC-ASBF - Growth Last 2 Years CCBFI - Compounded Annualised Growth Rate Last 3 Years Since Allotment 13/09/

26 IDFC Quarterly Interval Fund - Plan A (IDFC-QIF - Plan A) An Interval Income Fund Data as of 29 October 2008 Nature : Debt Fund size : Rs Crore Fund manager : Rajiv Anand Investment objective : Seek to generate returns from investments in Debt and Money Market instruments. There can be no assurance that the investment objective of the scheme will be realised. Investment style : The Scheme aims to invest in a highly quality money market instruments ith high liquidity and seeks to generate accrual income with low volatility. Ideal investment horizon : 1 year or more Risk profile : Medium Entry load : Nil Exit load : Units Repurchased/Redeemed* Applicable Exit Load % If repurchased on specified transaction date Nil On 45th day after the NFO / specified transaction date 0.75% *If the redemption date / pay out date falls on a holiday, the redemption date / payout date would be such other nearest business day that the AMC may deem to be appropriate. Decision of the AMC shall be considered final. Options available : Growth & Dividend. Reinvestment facility is available under the Dividend option. Minimum investment amount : Retail Plan : Rs. 5,000 per application, Institutional Plan : Rs. 1,00,000 per application Additional investment amount : Re.1 Inception date : September Average maturity/ duration : days Last 3 dividends : 30-Sep-2008 Plan A (I&H) Sep-2008 Plan A (Other) Sep-2008 Plan B (I&H) Sep-2008 Plan B (Others) (Rs.) : Plan A Dividend RP Plan A Growth RP Plan A Dividend IP Plan A Growth IP Benchmark : Crisil Liquid Fund Index (CLFI) as of 29 October 2008 State Bank of Hyderabad P Oriental Bank of Commerce Ltd. P Canara Bank P Punjab National Bank P ICICI Bank Ltd. A UCO Bank P Vijaya Bank PR IDBI Bank Limited A CP and CD Total Net Current Asset 0.14 Asset allocation as of 29 October Call / Reverse Repo / CBLO 0.14% 2 CP & CD 99.86% 2 IDFC-QIF-Plan A - Growth as of 29 October % 9.29% 7.63% 7.62% Last 1 Year IDFC-QIF-Plan A - Growth CLFI Since Allotment

27 IDFC Fixed Maturity Arbitrage Fund-Series-I (IDFC-FMAF-I) A Close - Ended Equity Fund Data as of 29 October2008 (Allotment Date 14 Dec 2007) as of 29 October2008 Fund Size Rs Crores Date of Maturity 23 Dec 2008 Market Value (%) Nav Market Value In Lakhs Rs. (in Lakhs) Futures Aurobindo Pharma Ltd Ashok Leyland Ltd Aptech Ltd Century Textiles And Ind. Ltd Dena Bank Development Credit Bank Ibn18 Broadcast Ltd Gtl Infrastructure Ltd Gtl Ltd HDFC Bank Ltd Hindalco Industries Ltd Hindustan Petroleum Corpn. Ltd Infrastructure Dev. Finance Co Oracle Financial Services Software Limited India Cements Limited Indian Oil Corporation Ltd Kotak Mahindra Bank Mahanager Telephone & Nigam Ltd Niit Ltd. FV Oil & Natural Gas Corporation Ranbaxy Laboratories Ltd Reliance Industries Ltd - Post Merger Syndicate Bank Television Eighteen India Ltd. - FV - Rs Tata Teleservices Maharashtra Ltd Vijaya Bank Total Nifty Stock Asea Brown Boveri Ltd. FV Associated Cement Co. Ltd Bharat Heavy Electricals Ltd Bharat Petroleum Corp. Ltd Bharti Airtel Ltd Cairn India Limited Cipla Ltd Dlf Limited State Bank of India Ltd Gail India Limited Grasim Industries Ltd Ambuja Cements Ltd HCL Technologies Ltd Housing Development Finance Co Hero Honda Motors Ltd Hindustan Unilever Ltd ICICI Bank Ltd Idea Cellular Limited Infosys Technologies Ltd Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth Market Value (%) Nav Market Value In Lakhs Rs. (in Lakhs) Futures ITC Limited - FV Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Limited National Aluminium Co. Ltd National Thermal Power Company Power Grid Corporation of India Punjab National Bank Reliance Communication Venturs Reliance Infrastructure Ltd Reliance Petroleum Ltd Reliance Power Ltd Satyam Computer Services Ltd Steel Authority of India Ltd Siemens Ltd. - FV Sterlite Industries Ltd. - FV Suzlon Energy Ltd. FV Sun Pharmaceuticals Ltd Tata Consultancy Services Ltd Tata Iron & Steel Co. Ltd Tata Motors Ltd Tata Power Company Ltd Unitech Ltd Tata Communication Ltd Wipro Limited Zee Entertainment Enterprises HDFC Bank Ltd Hindalco Industries Ltd Oil & Natural Gas Corporation Ranbaxy Laboratories Ltd Reliance Industries Ltd. - Post Merger Nifty Stocks / Nifty Futures Bank Deposit Total Money Market Instrument Total Net Current Asset Grand Total IDFC Tristar Series - I (IDFC-TS - I) A Close - Ended Income Fund Data as of 29 October2008 (Allotment Date 12 Jan 2006) as of 29 October 2008 / Industry State Bank of Patiala P Vijaya Bank PR Punjab National Bank P Kotak Mahindra Bank P IDBI Bank Limited A CP and CD Total Call / Reverse REPO/ Cblo Total None 2.40 Net Current Asset 0.50 Fund Size Rs Crores Date of Maturity 11 Jan 2009 Plan A - Growth Plan A - Dividend Institutional Plan - Plan B - Dividend Institutional Plan - Plan B - Growth 27

28 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October2008 IDFC-FMP - 9 (Allotment Date 28 Feb 2005) Fund Size Rs Crores Date of Maturity 07 Apr 2010 as of 29 October2008 Housing Development Finance Co. A ICICI Bank Ltd. AAA Corporate Debentures Total IDBI Bank Ltd. AA Union Bank of India AA Irfc AAA 8.47 Psu Bonds / FI - Fixed Total Net Current Asset 5.20 as on 29 October 2008 Plan A - Growth Plan A - Dividend IDFC-FMP - QS32 (Allotment Date 5 Aug 2008) Fund Size Rs Crores Date of Maturity 3 Nov 2008 as of 29 October2008 HDFC Bank Ltd. A Bill Rediscounting Total GE Capital Services India AAA Corporate Debentures Total Standard Chartered Bank P Tata Motors Ltd. P Rabo India Finance Limited P GE Capital Services India P Oriental Bank of Commerce Ltd. P Dena Bank F Corporation Bank P CP and CD Total IDFC Cash Fund Investment In MF Units Total Call / Reverse REPO/ Cblo Total None 0.09 Net Current Asset 0.32 Growth Dividend IDFC-FMP - QS38 (Allotment Date 14 Aug 2008) Fund Size Rs Crores Date of Maturity 11 Nov 2008 as of 29 October2008 Kotak Mahindra Bank P HDFC Bank Ltd. A Bill Rediscounting Total I L & FS Financial Services Ltd. A Srei Infrastructure Finance Ltd. Pr Corporate Debentures Total Indian Oil Corporation Ltd. A Psu Bonds / FI - Fixed Total Call / Reverse REPO/ Cblo Total None 0.35 Net Current Asset 0.88 Growth Dividend

29 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - QS39 (Allotment Date 22 Aug 2008) Fund Size Rs Crores Date of Maturity 20 Nov 2008 as of 29 October2008 National Housing Bank A ICICI Bank Ltd. A Standard Chartered Bank P State Bank of Bikaner & Jaipur P Federal Bank Ltd. P Kotak Mahindra Bank P Karnatak Bank Ltd. P ING Vysya Bank P Allahabad Bank A CP and CD Total IDFC Cash Fund Investment In MF Units Total Call / Reverse REPO/ Cblo Total None 0.13 Net Current Asset Growth Dividend IDFC-FMP - QS40 (Allotment Date 27 Aug 2008) Fund Size Rs Crores Date of Maturity 25 Nov 2008 as of 29 October2008 CBLO None 2.75 Call / Reverse REPO/ Cblo Total 2.75 Karnatak Bank Ltd. A ICICI Bank Ltd. P IDBI Bank Limited A Vijaya Bank Pr Punjab National Bank A Dena Bank F Kotak Mahindra Bank P Punjab National Bank P Tata Motors Ltd. P ABN Amro Bank NV A UCO Bank P Sidbi Pr State Bank of Mysore A Hongkong & Shanghai BKG Corpn. P Indian Bank F ICICI Bank Ltd. A Reliance Infratel Ltd. A Oriental Bank of Commerce Ltd. P Allahabad Bank A CP and CD Total Call / Reverse REPO/ Cblo Total None 0.06 Net Current Asset Plan A - Growth Plan A - Dividend IDFC-FMP - QS 45 (Allotment Date 15 Oct 2008) Fund Size Rs Crores Date of Maturity 12 Jan 2009 as of 29 October2008 IDBI Bank Limited A Karnatak Bank Ltd. A Corporation Bank P Punjab National Bank P Vijaya Bank Pr CP and CD Total Call / Reverse REPO/ Cblo Total None 0.25 Net Current Asset 0.23 Plan A Dividend Plan A Growth

30 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October2008 IDFC-FMP - QS41 (Allotment Date 05 Sep 2008) Fund Size Rs Crores Date of Maturity 4 Dec 2008 as of 29 October2008 CBLO None 1.25 Call / Reverse REPO/ Cblo Total 1.25 Federal Bank Ltd. P Reliance Capital Limited A Housing Development Finance Co. A Karnatak Bank Ltd. A Canara Bank P I L & F S A Idbi Bank Limited A State Bank of Patiala P ICICI Bank Ltd. A Canara Bank A Reliance Infratel Ltd. A CP and CD Total Net Current Asset 0.01 Plan A - Dividend Plan A - Growth IDFC-FMP - QS42 (Allotment Date 09 Sep 2008) Fund Size Rs Crores Date of Maturity 10 Dec 2008 as of 29 October2008 ICICI Bank Ltd. A Punjab National Bank P State Bank of Mysore A Housing Development Finance Co. P Allahabad Bank A CP and CD Total IDFC LPF-TP Growth Investment In MF Units Total Call / Reverse REPO/ Cblo Total None 1.24 Net Current Asset 0.21 Growth Dividend IDFC-FMP - QS43 (Allotment Date 26 Sept 2008) Fund Size Rs Crores Date of Maturity 23 Dec 2008 as of 29 October2008 Hongkong & Shanghai BKG Corpn. P ICICI Bank Ltd A Housing Development Finance Co. P Allahabad Bank A IDBI Bank Limited A Kotak Mahindra Bank P ABN Amro Bank NV A Karnatak Bank Ltd. P Vijaya Bank PR Karnatak Bank Ltd. PR CP And CD Total Call / Reverse REPO/ Cblo Total None 0.29 Net Current Asset 0.01 Plan A Dividend Plan A Growth

31 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October2008 IDFC-FMP - QS44 (Allotment Date 8 Oct 2008) Fund Size Rs Crores Date of Maturity 6 Jan 2009 as of 29 October2008 Kotak Mahindra Bank P ICICI Bank Ltd. P Allahabad Bank A Housing Development Finance Co. A Karnatak Bank Ltd. P CP and CD Total Net Current Asset 0.21 Plan A Dividend Plan A Growth IDFC-FMP - QS 37 (Allotment Date 7 August 2008) Fund Size Rs Crores Date of Maturity 5 Nov 2008 as of 29 October 2008 HDFC Bank Ltd. A Bill Rediscounting Total Kotak Mahindra Bank P Housing Development Finance Co. A Jammu & Kashmir Bank Limited P Tata Motors Ltd. P Reliance Infratel Ltd. A Vijaya Bank PR Punjab National Bank F CP and CD Total Call / Reverse REPO/ Cblo Total None 0.30 Net Current Asset Plan A Dividend Plan A Growth IDFC-FMP - YS17 (Allotment Date 27 Mar 2008) Fund Size Rs Crores Date of Maturity 02 Apr 2009 as of 30 September2008 I L & F S F1+(IND)(SO) Corporate Debentures Total Kotak Mahindra Bank P Reliance Infratel Ltd. A ICICI Bank Ltd. A Allahabad Bank P Exim Bank AAA 2.47 Corporation Bank P IDBI Bank Limited A Allahabad Bank A CP and CD Total Housing Development Finance Co. AAA 0.56 Mibor Linked Bonds Total 0.56 Hindustan Petroleum Corpn. Ltd. P1+ (SO) Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth Power Finance Corporation Ltd. AAA(SO) 2.66 Psu Bonds / FI - Fixed Total Net Current Asset

32 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - YS19 (Allotment Date 27 Mar 2008) Fund Size Rs Crores Date of Maturity 02 Apr 2009 as of 29 October2008 I L & F S F1+(IND)(SO) Corporate Debentures Total ICICI Bank Ltd. A State Bank of Patiala A Bank of Baroda A Karur Vysya Bank F Hongkong & Shanghai Bkg Corpn. A Housing Development Finance Co. P Reliance Capital Limited A Reliance Infratel Ltd. A IDBI Bank Limited A UCO Bank P CP and CD Total Hindustan Petroleum Corpn. Ltd. P1+ (SO) 6.59 Power Finance Corporation Ltd. AAA(SO) 1.75 Psu Bonds / FI - Fixed Total 8.34 Net Current Asset 0.00 Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth IDFC-FMP - YS20 (Allotment Date 31 Mar 2008) Fund Size Rs Crores Date of Maturity 06 Apr 2009 as of 29 October2008 Housing Development Finance Co. AAA I L & F S F1+(IND)(SO) 1.49 Srei Infrastructure Finance Ltd. PR ICICI Bank Ltd. AAA(SO) 0.03 Corporate Debentures Total ICICI Bank Ltd. A Reliance Infratel Ltd. A UCO Bank P IDBI Bank Limited A Allahabad Bank P ICICI Bank Ltd P HDFC Bank Ltd. AAA 0.83 Karnatak Bank Ltd. P Punjab National Bank F Allahabad Bank A Oriental Bank of Commerce Ltd. P CP and CD Total Hindustan Petroleum Corpn. Ltd. P1+ (SO) Infrastructure Dev. Finance Co. LAAA Power Finance Corporation Ltd. AAA(SO) 8.88 ICICI Bank Ltd. AAA(SO) 6.70 Infrastructure Dev Finance Co. AAA 4.39 Psu Bonds / FI - Fixed Total Net Current Asset 1.71 Plan Plan A - Dividend -- Plan A - Growth Plan B - Dividend Plan B - Growth IDFC-FMP - YS21 (Allotment Date 14 Apr 2008) Fund Size Rs Crores Date of Maturity 20 Apr 2009 as of 29 October2008 ICICI Bank Ltd. A Punjab National Bank F IDBI Bank Limited A CP and CD Total Net Current Asset 0.34 Plan A - Dividend Plan A - Growth Plan B - Dividend Plan B - Growth

33 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - YS 22 (Allotment Date 18 June 2008) Fund Size Rs Crores Date of Maturity 24 June 2009 as of 29 October2008 I L & F S F1+(IND)(SO) Housing Development Finance Co. AAA 9.63 GE Capital Services India A1+(SO) 4.00 Corporate Debentures Total IDBI Bank Limited A Punjab National Bank F Housing Development Finance Co. A Reliance Infratel Ltd. A CP and CD Total LIC Housing Finance Ltd. AAA 9.79 Nabard AAA 9.77 Power Finance Corporation Ltd. AAA 9.47 Psu Bonds / FI - Fixed Total Call / Reverse REPO/ Cblo Total None 0.55 Net Current Asset 2.29 Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth IDFC-FMP - YS23 (Allotment Date 15 July 2008) Fund Size Rs Crores Date of Maturity 16 July 2009 as of 29 October2008 Bennett, Coleman & Co Ltd. P1+ (SO) Corporate Debentures Total ICICI Bank Ltd. A Kotak Mahindra Bank P Corporation Bank P Exim Bank AAA Punjab National Bank F Reliance Infratel Ltd. A CP and CD Total Call / Reverse REPO/ Cblo Total None 0.28 Net Current Asset Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth IDFC-FMP - YS24 (Allotment Date 31 July 2008) Fund Size Rs Crores Date of Maturity 3 Aug 2009 as of 29 October2008 Bennett, Coleman & Co Ltd. P1+ (SO) Srei Infrastructure Finance Ltd. PR Corporate Debentures Total Reliance Telecom Ltd. A Sundaram Finance P Reliance Capital Limited A Ing Vysya Bank P Cholamandalam DBS & Finance Ltd. P Reliance Infratel Ltd. A IDBI Bank Limited A CP and CD Total LIC Housing Finance Ltd. AAA 2.65 Psu Bonds / FI - Fixed Total 2.65 Call / Reverse REPO/ Cblo Total None 0.14 Net Current Asset 0.39 Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth

34 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - YS25 (Allotment Date 14 Aug 2008) Fund Size Rs Crores Date of Maturity 17 Aug 2009 as of 29 October2008 GE Capital Services India A1+(SO) Corporate Debentures Total IDBI Bank Limited A Reliance Capital Limited A ICICI Bank Ltd. P Reliance Infratel Ltd. A CP and CD Total Net Current Asset 0.43 Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth IDFC-FMP - YS26 (Allotment Date 23 Sept 2008) Fund Size Rs Crores Date of Maturity 24 Sept 2009 as of 29 October2008 IDBI Bank Limited A Housing Development Finance Co. A State Bank of Patiala A Corporation Bank P CP and CD Total Housing Development Finance Co. AAA 9.09 Mibor Linked Bonds Total 9.09 Call / Reverse REPO/ Cblo Total None 2.38 Net Current Asset 0.37 Plan A Dividend Plan A Growth Plan B Dividend -- Plan B Growth IDFC-FMP - MS 7 (Allotment Date 14 Oct 2008) Fund Size Rs Crores Date of Maturity 11 Nov 2008 as of 29 October2008 CBLO None Call / Reverse REPO/ Cblo Total IDBI Bank Limited A Oriental Bank of Commerce Ltd. P Canara Bank P Union Bank of India A Exim Bank P Dena Bank F Allahabad Bank P Housing Development Finance Co. A CP and CD Total Net Current Asset 0.01 Plan A Dividend Plan A Growth

35 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - FMS-1 (Allotment Date 20 Aug 2008) Fund Size Rs Crores Date of Maturity 12 Nov 2009 as of 29 October2008 Housing Development Finance Co. AAA Corporate Debentures Total Idbi Bank Limited A State Bank of Patiala P CP and CD Total Power Finance Corporation Ltd. AAA IRFC AAA 6.95 Power Grid Corporation Limited AAA 4.95 Psu Bonds / FI - Fixed Total Net Current Asset 3.23 Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth IDFC-FMP - FMS-2 (Allotment Date 28 Aug 2008) Fund Size Rs Crores Date of Maturity 23 Nov 2009 as of 29 October 2008 Icici Bank Ltd A Idbi Bank Limited A Jammu & Kashmir Bank Limited P CP and CD Total Power Grid Corporation Limited Aaa Psu Bonds / FI - Fixed Total Net Current Asset 1.64 Plan A Growth Plan A Dividend Plan B Growth Plan B Dividend IDFC-FMP - EMS-1 (Allotment Date 21 Dec 2007) Fund Size Rs Crores Date of Maturity 18 Jun 2009 as of 29 October2008 ICICI Bank Ltd. A CP and CD Total Net Current Asset 0.22 Plan A Dividend Plan A Growth Plan B Dividend Plan B Growth

36 IDFC Fixed Maturity Plan (IDFC-FMP) A Close - Ended Income Fund Data as of 29 October 2008 IDFC-FMP - NMS 1 (Allotment Date 14 Oct 2008) Fund Size Rs Crores Date of Maturity 6 May 2010 as of 29 October2008 Housing Development Finance Co. AAA Corporate Debentures Total State Bank of Patiala A Housing Development Finance Co. A IDBI Bank Limited A CP and CD Total LIC Housing Finance Ltd. AAA Power Grid Corporation Limited AAA Irfc AAA 9.70 Psu Bonds / FI - Fixed Total Call / Reverse REPO/ Cblo Total None 1.72 Net Current Asset 0.76 Plan A Dividend Plan A Growth Plan B Dividend -- Plan B Growth -- 36

37 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 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 (*earlier known as IDFC Floating Rate Fund Long Term Plan (IDFC-FRF-LT) & IDFC Floating Rate Fund - Short Term Plan (IDFC-FRF-ST) respectively), 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), IDFC Tristar Series- I (IDFC-TS-I), IDFC Quarterly Interval Fund Plan A (IDFC-QIF-Plan A), IDFC Fixed Maturity Arbitrage Fund Series I (IDFC-FMAF-I), various IDFC Fixed Maturity Plans, IDFC Arbitrage Plus Fund (IDFC-APF) and IDFC Small and Midcap Equity (SME) Fund (IDFC-SMEF) 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. Terms of Issue & Load Structure: IDFC-SSIF, IDFC-CF, IDFC-GSF, IDFC-DBF, IDFC-LPF, IDFC-ASBF, IDFC-LM, IDFC-LF, IDFC-CEF, IDFC-QIF- Plan A, IDFC-FMAF-I, IDFC-PEF, IDFC-TS (ELSS), IDFC-AF & IDFC-IEF: During the continuous offer the AMC calculates and publishes s and offers for sale and redemption of units of the Scheme on all Business days. There is no entry/exit load on IDFC-CF, IDFC-LF, IDFC-SSIF Short Term (ST), IDFC-ASBF, IDFC-SSIF-IP, IDFC-DBF, IDFC-GSF-IP, IDFC- GSF-PF, IDFC-FMAF-I, IDFC-LPF IP & IDFC-LPF-TP and IDFC-LM. There is no exit load in case of IDFC-TS (ELSS). There is no Entry Load on IDFC-QIF-Plan A and IDFC-SSIF- MT. In case of IDFC-QIF-Plan A exit load of 0.75 % will be levied on 45th day after the NFO / specified transaction date. An exit load of 0.50 will be levied on units of IDFC-SSIF- MT (Plan A) on investors who purchase/switch in and seek to redeem / switch out such units within 180 days 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. Exit load of IDFC-GSF-ST (with effect from November 10, 2008): 0.25 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 both Plan A (Regular Plan) and Plan B (Institutional Plan). Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. 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, 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 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, 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 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 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 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 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 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 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 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: For redemptions including switch outs 0.25% upto 3 months from the date of investment in Plan A and 0.25% upto 1 month from the date of investment in Plan B, NIL beyond 3 months incase of Plan A and NIL beyond 1 month incase of Plan B. IDFC-FMAF-I, IDFC-FMP-9, IDFC-TS-I, IDFC-FMP-6, 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-MS3, IDFC-FMP-QS32, IDFC-FMP-QS37, IDFC-FMP-QS38, IDFC-FMP-QS39, IDFC-FMP-QS40, IDFC-FMP-QS41 and IDFC-FMP- QS42 are Close Ended Income Schemes. The AMC will calculate and publish the on a weekly basis. The units issued under IDFC-FMP-9 will be redeemed on April 7, 2010, IDFC- FMP-6 on August 11, 2008, 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-MS3 on September 22, 2008, IDFC-FMP-EMS1 on June 18, 2009, IDFC-FMAF-I on December 23, 2008, IDFC-TS-I on January 11, 2009, IDFC-FMP-QS32 on November 3, 2008, IDFC-FMP-QS37 on November 5, 2008, IDFC-FMP-QS38 on November 11, 2008, IDFC-FMP-QS39 on November 20, 2008, IDFC- FMP-QS40 on November 25, 2008, IDFC-FMP-QS41 on December 4, 2008 and IDFC-FMP-QS42 on December 10, In IDFC-FMAF-I repurchase facility is provided on all business days and there is no exit load. 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-6 exit load is 2% for repuchases made upto June 30, 2007, 1.50 % for repurchases made upto December 31, 2007, 1.00 % for repurchases made upto June 30, 2008 (on specified repurchase dates) & NIL on maturity. 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-TS-I exit load is 5.00 % for purchases made upto June 30, 2007, 4.00% for purchases made upto March 31, 2008, 3.00% for purchases made upto December 31, 2008 (on specified repurchase dates) and Nil on maturity. To give liquidity to investors, repurchase facility is made available on a quarterly basis. In IDFC-FMP-QS37 exit load is 1.00% for repurchases made upto September 22, 2008 and NIL on maturity. In IDFC-FMP-QS38 exit load is 1.00% for repurchases made upto September 29, 2008 and NIL on maturity. In IDFC-FMP-QS31 exit load is 1.00% for repurchases made upto September 1, 2008 and NIL on maturity. In IDFC-FMP-QS32 exit load is 1.00% for repurchases made upto September 18, 2008 and NIL on maturity. In IDFC-FMP-QS39 exit load is 1.00% for repurchases made upto October 6, 2008 and NIL on maturity. In IDFC-FMP-QS40 exit load is 1.00% for repurchases made upto October 13, 2008 and NIL on maturity. In IDFC-FMP-QS41 exit load is 1.00% for repurchases made upto October 20, 2008 and NIL on maturity. In IDFC-FMP-QS42 exit load is 1.00% for repurchases made upto October 23, 2008 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. A minimum amount of investment in Plan A (Regular Plan) of IDFC-CF, IDFC-LPF-TP, IDFC-LPF-IP, IDFC-SSIF-ST, IDFC-SSIF-MT, IDFC-SSIF-IP, IDFC-DBF, IDFC-GSF-IP and IDFC-GSF-PF and in Plan D (MF Plan) of IDFC-SSIF-ST is Rs. 5,000. A minimum amount of investment in Plan B (Institutional Plan) of IDFC-CF, IDFC-LPF-TP, IDFC-LPF-IP, and IDFC-SSIF-ST is Rs. 1 Crore and Rs. 2,500,001 in IDFC-GSF-PF. A minimum amount of investment in Plan C (Super Institutional Plan) of IDFC-CF, IDFC-LPF-TP and IDFC-SSIF-ST is Rs. 5 Crores. In case of IDFC-AF, Plan B is available for investments (Contd.) 37

38 Risk Factors by all categories of investors with minimum application amount of Rs. 100,000/-. 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 open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in Government Securities. IDFC-QIF-Plan A is an interval income Fund. The investment objective of the Scheme is to seek to generate returns from investments in Debt and Money Market instruments. Specified transaction date(s): The Scheme is an interval income scheme and the scheme shall be available for subscription / switch ins and redemption / switch outs, without any load on the specified transaction date(s). The first specified transaction date would be the 89th day from the date of allotment. Subsequent specified transaction date(s) would be generally the 89th day from the previous specified transaction date(s). If the specified transaction date / pay out date falls on a holiday, the specified transaction date / payout date would be such other nearest business day that the AMC may deem to be appropriate. Decision of the AMC shall be considered final. Additionally the scheme would provide the investors an option to redeem / switch out generally on the 45th day (If such date / pay out date falls on a holiday, the redemption date / payout date would be such other nearest business day that the AMC may deem to be appropriate. Decision of the AMC shall be considered final.) after the specified transaction date(s) at based prices subject to prevailing exit load. The AMC reserves the right to alter the specified transaction date(s) and shall appropriately communicate the same to the investors. 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-6: To seek to generate income by investing in a portfolio of debt and money market instruments 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-TS-I: The investment objective of the scheme is to seek to generate income from its investments in debt and money market instruments and seek to provide capital appreciation from its investments in equity and equity related instruments. However there is no assurance that the investment objective of the scheme will be realized. IDFC-FMAF-I is a Close Ended Equity Scheme seeking to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and the 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. However there is no assurance that the investment objective of the scheme will be realized. 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 equity-related 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. 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 administration, marketing or trading of the Product. IISL does not guarantee the accuracy and / or the completeness of the CNX Midcap Index (name of the index) or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL makes no warranty, express or implied, as to the results to be obtained by the IDFC Asset Management Company Pvt. Ltd. (name of third party licensee), owners of the product, or any other persons or entities from the use of CNX Midcap Index (name of the index) or any data included therein. IISL makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the CNX Midcap Index ( name of the Index) or any data included therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. For details please refer to the Scheme Information Document. Statutory Details: IDFC Mutual Fund has been set up as a trust by Infrastructure Development Finance Company Limited (IDFC) (liability restricted to corpus of Trust of Rs. 30,000) with IDFC AMC Trustee Company Private Ltd (Company with limited liability) as the trustee and IDFC Asset Management Company Private Ltd (Company with limited liability) as the investment manager. Investors in the scheme(s) are not being offered any guaranteed or assured rate of return. 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, 90, M G Road, 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. 38

39 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 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. The name(s) of the scheme(s) do not in any manner indicate either the quality of the scheme(s), 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 Scheme(s) beyond the corpus of the Trust of Rs. 30,000/-. Please read Offer Document(s) before investing. Statutory Details: IDFC Mutual Fund has been set up as a trust by Infrastructure Development Finance Company Limited (IDFC) (liability restricted to corpus of Trust of Rs. 30,000) with IDFC AMC Trustee Company Private Ltd (Company with limited liability) as the trustee and IDFC Asset Management Company Private Ltd (Company with limited liability) as the investment manager. Investors in the scheme(s) are not being offered any guaranteed or assured rate of return. Copy of Offer Document (s) and Key Information Memorandum along with application form for all the schemes may be obtained from the office of IDFC Mutual Fund, 90, M G Road, Mumbai Contact for details. For details please read the respective Offer Document carefully before investing.