Mutual Funds - A perspective

What is a Mutual Fund? It is a trust created which invests the money collected, into funds for a particular objective

Types Of Mutual Funds

Equity Based

Debt Based

Hybrid

New Concepts

Equity Based On the Basis of Diversification Sectoral Diversified

On the Basis of Capitalization Large Cap Mid-Cap Multi-Cap On the Basis of Valuations Growth Funds Value Funds

Components of a Equity FundShares: Large Caps, Mid Caps & Small CapsDerivatives: futures and optionsADRs and GDRsCall Money instruments (maintain liquidity. & safety)Short term debt securities: T-Bills, CD, CPsLong Term Debt papers (incase of bearish Mkts).

Benchmark returns- Equity & DebtAs on 26th December,2005)

Sheet1

BENCHMARK RETURNS-EQUITY

Fund1-Year2-Year3-Year5-Year

BSE Sensex39.8226.2639.0118.88

S&P CNX Nifty33.3022.3435.9317.80

Sector Average-DIVERSIFIED44.5435.3656.3430.70

Sector Average-Midcap54.9746.0273.6246.60

CNX Midcap 20099.4384.8156.9627.99

BENCHMARK RETURNS-DEBT(Medium Term)

Sector Average-Debt5.032.764.769.02

Sheet2

BENCHMARK RETURNS-DEBT

FundYTD1-Day7-Day15-Day21-Day1-Month3-Month

Sector Average- Floating Rate5.245.665.315.295.315.695.36

Sector Average-Ultra ST5.175.055.205.215.205.395.30

Sector Average-ST5.649.245.176.306.496.855.91

Sheet3

Debt BasedOn the Basis of investment HorizonUltra short termShort termMedium to Long Term

On the basis of Debt securitiesGilt FundsIncome FundsLiquid PlansFloating rate FundDynamic Funds

Hybrid Funds

Balanced Funds

Monthly Income Plans

PositioningExpected risk-returnLiquid fundsST PLANSRISKRETURN

Advantages Professional management Safety Liquidity Flexibility Transparency

Systematic Investment PlanA Systematic Investment Plan (SIP) is a facility that allows you to invest in adisciplined manner, by investing at regular intervals quarterly, monthly,fortnightly or even every week into a Mutual Fund.

2.Disciplined Investing HabitBenefits:1. Rupee Cost Averaging

(No need to time the market)

Systematic Investment PlanBenefits contd..

3. No Entry Load4. Auto Debit facility.5. Flexible Investments.6. Commensurate Returns

SIP Returns*(as on 30.11.05)* The SIP Returns are computed based on IRR method

Equity SchemesFundSince InceptionLast 3 YearsLast 2 YearsLast 1 YearSundaram Growth Fund28.91%52.54%44.67%52.21%Sundaram Select Focus49.76%49.17%42.49%53.57%Sundaram Select Mid cap63.56%63.62%49.78%33.82%Sundaram India Leadership Fund75.21%--79.99%Sundaram Tax saver (OE)37.61%59.52%55.43%51.52%

The CommandmentsRisk appetite.

Time horizon.

Returns expected.

Advantage YOU !!!Rapo with the Clients.Greater level of trust.Have a wide coverage / clientage.Potential of the investor known.One point contact.Quality service & advice

Time Horizon Vs. Asset ClassEquity Funds: 1 year & above, ideally >2 yr.Income Funds & L.t. Floater & MIPs: 1 year & aboveS.T. plans & ST Floater: 3-12 months.Liquid Funds: 1day-3 months.

Thank you !!!

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