Mutual Fund

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Contents Preface 2 Acknowledgement 3 Objectives of the Study 4 Executive Summary 5 1 Introduction to Mutual Fund 10 11 Mutual Fund ndash Concept 11 12 Types of Mutual Fund Schemes 12 13 Advantages ndash Disadvantages of Mutual Fund 16 14 Risk Involved in Mutual Fund 19 15 Structure of Mutual Fund 21 2 Mutual Fund Industry in India 23 21 History of Mutual Fund 24 22 Mutual Fund Players 26 3 SBI Mutual Fund 31 31 Introduction of the Organization 32 32 Company Profile 33 33 Vision amp Mission 34 34 Investment Philosophy 35 35 Details of Chairman Trustee AMC amp Sponsors 36 36 Product Profile 39 4 Marketing of Mutual Funds 42 41 Mutual Fund ndash Marketing Perspective 43 42 Distribution Channel 46 43 Trends in Marketing of Mutual Funds in India 49 44 Marketing of UTI Mutual Fund ndash Our Learning 52

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11 Mutual Fund ndash ConceptA Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal The money thus collected is then invested in capital market instruments such as shares debentures and other securities The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified professionally managed basket of securities at a relatively low cost The flow chart below describes broadly the working of a mutual fund

A mutual fund is a pool of money which is collected from many investors and is invested by any management company to achieve some common objective of the investors

Thus a mutual fund is a collective investment process An Asset Management Company

Mutual Fund Operation Flow Chart Source wwwindiamartcom

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12 Types of Mutual Fund Schemes Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position risk tolerance and return expectations etc There are following types of schemes available for various types of investors

BY STRUCTURE A Open ndash Ended Schemes B Close ndash Ended Schemes C Interval Schemes

BY INVESTMENT OBJECTIVE A GrowthEquity Oriented Schemes B IncomeDebt Oriented Schemes C Balanced Schemes D Money MarketLiquid Schemes E Gilt Schemes F Index Schemes

OTHER SCHEMES A Sector Specific Schemes B Tax SavingELSS Schemes

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BY STRUCTURE

H Open ndash Ended Schemes As the name implies the size of the scheme (fund) is open ndash ie not specified or pre-determined Entry to the fund is always open the investor who can subscribe at anytime Such fund stands ready to buy or sell its securities at anytime The key feature of Open-ended schemes is Liquidity It implies that the capitalization of the fund is constantly changing as investors sell or buy their shares Further the shares or units are normally not traded on the stock exchange but are repurchased by the funds at announced rates Open-ended schemes have comparatively better liquidity despite the fact that these are not listed The reason is that investors can any time approach mutual fund for sale of such units No intermediaries are required Moreover the realizable amount is certain since repurchase is at a price based on declared net asset value (NAV) The portfolio mix of such schemes has to be investments which are actively traded in the market Otherwise it will not be possible to calculate NAV This is the reason that generally open-ended schemes are equity based In Open-ended schemes the option of dividend reinvestment is available I Close-Ended Schemes A Close ndash ended schemes have a definite period after which their sharesunits are redeemed The scheme is open for subscription only during a specified period at the time of launch of a scheme Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed In order to provide an exit route to the investors some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices In these types of schemes the size of the fund kept to be constant SEBI regulations stipulate that at least one of the two exit routes is provided to the investor ie either repurchase facility or through listing on stock exchanges These mutual funds schemes disclose NAV generally on weekly basis J Interval schemes Interval Schemes combine the features of both open-ended and close-ended schemes They are open for sale or redemption during pre-determined intervals at NAV based prices

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BY INVESTMENT OBJECTIVE A GrowthEquity Oriented Schemes The aim of growth funds is to provide capital appreciation over the medium to long term Such schemes normally invest a major part of their corpus in equities Such funds have comparatively high risks These schemes provide different options to the investors like dividend option capital appreciation etc and the investors may choose an option depending on their preference The investor must indicate the option in the application form The mutual funds also allow the investors to change the options at a later date Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time B IncomeDebt oriented Schemes The aim of income funds is to provide regular and steady income to investors Such schemes generally invest in fixed income securities such as bonds corporate debentures government securities and money market instruments Such funds are less risky compared to equity schemes These funds are not affected because of fluctuations in equity market However opportunities of capital appreciation are also limited in such funds The NAVs of such funds are affected because of change in interest rates in the country If the interest rates fall NAVs of such funds are likely to increase in the short run and vice versa However long-term investors may not bother about these fluctuations C Balanced Fund The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents These are appropriate for investors looking for moderate growth They generally invest 40-60 in equities and debt instruments These funds are also affected because of fluctuations in share prices in the stock markets However NAVs of such funds are likely to be less volatile compared to pure equity funds D Money market Liquid fund These funds are also income funds and their aim is to provide easy liquidity preservation of capital and moderate income These schemes invest exclusively in safer short-term instruments such as treasury bills certificates of deposit commercial paper and inter-bank call money government securities etc Returns in these schemes fluctuate much less compared to other funds These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods

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E Gilt Funds These funds invest exclusively in government securities Government securities have no default risk NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as are the case with income or debt oriented schemes F Index Schemes Index funds replicate the portfolio of a particular index such as the BSE Sensex SampP NSE 50 index (Nifty) etc These schemes invest in the securities in the same weight age comprising of an index NAVs of such schemes would rise or fall in accordance with the rise or fall in the Index though not exactly by the same percentage due to some factors known as ldquotracking errorrdquo in technical terms Necessary disclosures in this regard are made in the offer document of the mutual fund scheme These are also exchange traded index funds launched by the mutual funds which are traded in the stock exchanges OTHER SCHEMES

A Tax Saving (ELSS) Schemes All the mutual funds floated by public sector banks and insurance companies have launched tax saving schemes These schemes are designed on the basis of tax policy with special tax incentives to tax taxpaying investors These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act 1961 as the government offers tax incentives for investment in specified avenues Eg Equity Linked Savings Schemes (ELSS) Pension Schemes launched by the mutual funds also offer tax benefits These schemes are growth oriented and invest predominantly in equities Their growth opportunities and risks associated are like any equity-oriented scheme

B Sector Specific Schemes These are the schemes which invest in the securities of only those sectors or industries as specified in the offer documents Eg Pharmaceuticals Software Fast Moving Consumer Goods (FMCG) Power or Infrastructure etc The return sin these funds are dependent in the performance of the respective sector industries While these funds may give higher returns they are more risky compared to diversified funds Investors need to keep a watch in the performance of those sectorsindustries and must exit at an appropriate time They may also seek advice of an expert

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13 Advantages and Disadvantages of Mutual Fund

Advantages of Mutual Fund Professional Management Mutual Funds provide the services of experienced and skilled professionals backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme Diversification Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion You achieve this diversification through a Mutual Fund with far less money than you can do on your own Convenient Administration Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries delayed payments and follow up with brokers and companies Mutual Funds save your time and make investing easy and convenient Return Potential Over a medium to long-term Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities Low Costs Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage custodial and other fees translate into lower costs for investors Liquidity In open-end schemes the investor gets the money back promptly at net asset value related prices from the Mutual Fund In closed-end schemes the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund Transparency Investors get regular information on the value of their investment in addition to disclosure on the specific investments made by their scheme the proportion invested in each class of assets and the fund managers investment strategy and outlook Flexibility Through features such as regular investment plans regular withdrawal plans and dividend reinvestment plans you can systematically invest or withdraw funds according to your needs and convenience Affordability Investors individually may lack sufficient funds to invest in high-grade stocks A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy Choice of Schemes Mutual Funds offer a family of schemes to suit your varying needs over a lifetime Well Regulated All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors The operations of Mutual Funds are regularly monitored by SEBI

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Disadvantages of Mutual Fund Entry and Exit load Mutual funds are a victim of their own success When a large body like a fund invests in shares the concentrated buying or selling in adverse price movements lay at the time of buying the fund ends up paying a higher price and while selling it realize a lower price This problem is especially severe in emerging markets like India where excluding a few stocks even the stocks in the Sensex are not liquid Let alone stocks in the NSE 50 or the CRISIL 500 So there is simply no way that a fund can beat the Sensex or any other index if it is blindly invests in the same stocks as those in the Sensex and in the same proportion No control over costs The costs of the fund management process are deducted from the fund This includes marketing and initial costs deducted at the time of entry itself called lsquoLoadrsquo Then there is the annual asset management fee and expenses together called the expense ratio Usually the former is not counted while measuring performance while the latter is A Standard 2 percent expense ratio means that everything else being equal the fund manager under performs the benchmark index by an equal amount No tailor-made portfolio The portfolio of a fund does not remain constant The extent to which the portfolio changes is a function of the style of the individual fund manager ie whether he is a buy and hold type of manager or one who aggressively churns the fund It is also depends on the volatility of the fund size ie whether the fund constantly receives fresh subscriptions and redemptions Such portfolios changes have associated costs of brokerage custody fees registration fees etc that lowers the portfolio return commensurately No Guarantee of return No investment is risk free If the entire stock market declines in value the value of mutual fund shares will go down as well no matter how balanced the portfolio Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own However anyone who invests through a mutual fund runs the risk of losing money Taxes During a typical year most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios If your fund makes a profit on its sales you will pay taxes on the income you receive even if you reinvest the money you made Management risk When you invest in a mutual fund you depend on the funds manager to make the right decisions regarding the funds portfolio If the manager does not perform as well as you

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had hoped you might not make as much money on your investment as you expected Of course if you invest in Index Funds you forego management risk because these funds do not employ managers

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14 Risk Involved in Mutual Fund

THE RISK-RETURN TRADE-OFFThe most important relationship to understand is the risk-return trade-off Higher the risk greater the returnsloss and lower the risk lesser the returnsloss Hence it is up to you the investor to decide how much risk you are willing to take In order to do this you must first be aware of the different types of risks involved with your investment decision MARKET RISK Sometimes prices and yields of all securities rise and fall Broad outside influences affecting the market in general lead to this This is true may it be big corporations or smaller mid-sized companies This is known as Market Risk A Systematic Investment Plan (ldquoSIPrdquo) that works on the concept of Rupee Cost Averaging (ldquoRCArdquo) might help mitigate this risk CREDIT RISK The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cash flows determines the Credit Risk faced by you This credit risk is measured by independent rating agencies like CRISIL who rate companies and their paper An lsquoAAArsquo rating is considered the safest whereas a lsquoDrsquo rating is considered poor credit quality A well-diversified portfolio might help mitigate this risk INFLATION RISK Things you hear people talk about ldquoRs 100 today is worth more than Rs 100 tomorrowrdquo ldquoRemember the time when a bus ride costed 50 paisardquo ldquoMehangai Ka Jamana Hairdquo The root cause Inflation Inflation is the loss of purchasing power over time A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment This happens when inflation grows faster than the return on your investment A well-diversified portfolio with some investment in equities might help mitigate this risk INTEREST RATE RISK In a free market economy interest rates are difficult if not impossible to predict Changes in interest rates affect the prices of bonds as well as equities If interest rates raise the prices of bonds fall and vice versa Equity might be negatively affected as well in a rising interest rate environment A well-diversified portfolio might help mitigate this risk POLITICALGOVERNMENT POLICY RISK Changes in government policy and political decision can change the investment environment They can create a favorable environment for investment or vice versa LIQUIDITY RISK Liquidity risk arises when it becomes difficult to sell the securities that one has purchased Liquidity Risk can be partly mitigated by diversification staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities

15 Structure of Mutual Fund All mutual fund comprise mainly three constitutions ndash 10487071048707Sponsors 10487071048707Trustees 10487071048707Asset Management Company (AMC)

Sponsors The Sponsors initiate the idea to set up a mutual fund It could be a registered company scheduled bank or financial institution A Sponsor is the Promoter of the Mutual Fund which cerates AMC and appoints trustees There are some criterions which every sponsor have to fulfill Financial Services Business 104870710487075- years Track record 104870710487073 years profit making record 10487071048707At least 40 contribution to AMC capital

Trustees Trustees hold a fiduciary responsibility towards unit holders by protecting their interests Trustees float and market schemes and secure necessary approvals Trustees are appointed by sponsor with SEBI approval A trust has registered ownership of investments and appoints all other constituents They check if the AMCrsquos investments are within well defined limits whether the fundrsquos assets are protected and also ensure that unit hold get their due returns There are at least 4 trustees and 23 of them should be independent Trustees of one mutual fund cannot be trustee of another mutual fund All major decisions need trustee approval Asset Management Company (AMC) AMCrsquos are managing the money of investors An AMC takes decisions compensates investors through dividends maintain proper accounting and information for pricing of units calculated the NAV and provides information on listed schemes An AMC is responsible for operational aspects of the mutual fund Basically they are manufacturers of mutual fund schemes They have an investment management agreement with trustees which are registered with SEBI Its net worth should be maintained Rs 10 crore at all times An AMC cannot have any other Business interest and they have a mandatory duty of quarterly reporting to appointed trustees Other Constituents Custodian It takes custody of securities and other assets of mutual fund Its responsibilities include receipt and delivery of securities collecting income-distributing dividends safekeeping of the units and segregating assets and settlements between schemes Custodians can service more than one fund Registrar and Transfer Agents They make transactions and maintain the investor records

MUTUAL FUND INDUSTRY IN INDIA

21 History of Mutual Fund The mutual fund industry in India started in 1963 with the formation of Unit Trust of India at the initiative of the Government of India and Reserve Bank The history of mutual funds in India can be broadly divided into four distinct phases First Phase ndash 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI The first scheme launched by UTI was Unit Scheme 1964 At the end of 1988 UTI had Rs6 700 crores of assets under management Second Phase ndash 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87) Punjab National Bank Mutual Fund (Aug 89) Indian Bank Mutual Fund (Nov 89) Bank of India (Jun 90) Bank of Baroda Mutual Fund (Oct 92) LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990 At the end of 1993 the mutual fund industry had assets under management of Rs47004 crores Third Phase ndash 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993 a new era started in the Indian mutual fund industry giving the Indian investors a wider choice of fund families Also 1993 was the year in which the first Mutual Fund Regulations came into being under which all mutual funds except UTI were to be registered and governed The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993 The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996 The industry now functions under the SEBI (Mutual Fund) Regulations 1996 The number of mutual fund houses went on increasing with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions As at the end of January 2003 there were 33 mutual funds with total assets of Rs 121805 crores The Unit Trust of India with Rs44 541 crores of assets under management was way ahead of other mutual funds Fourth Phase ndash since February 2003 In February 2003 following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs29 835 crores as at the end of January 2003 representing broadly the assets of US 64 scheme assured return and certain other schemes The Specified Undertaking of Unit Trust of India functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations

The second is the UTI Mutual Fund Ltd sponsored by SBI PNB BOB and LIC It is registered with SEBI and functions under the Mutual Fund Regulations With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs76000 crores of assets under management and with the setting up of a UTI Mutual Fund conforming to the SEBI Mutual Fund Regulations and with recent mergers taking place among different private sector funds the mutual fund industry has entered its current phase of consolidation and growth As at the end of September 2004 there were 29 funds which manage assets of Rs153108 crores under 421 schemes The graph indicates the growth of assets over the years

22 Mutual Fund Players The Indian mutual fund industry is mainly divided into three kinds of categories These categories include public sector players nationalized banks and private sector and foreign players UTI Mutual Fund was one of the leading Mutual Fund companies in India till May 2006 with a corpus of more than Rs31 000 Crore and it is the public sector mutual fund Bank of Baroda Punjab National Bank Can Bank and SBI are the major nationalized banks mutual fund At present mutual fund industry is mainly dominated by private and foreign sector players which include major players like Prudential ICICI Mutual Fund HDFC Mutual Fund Reliance Mutual Fund etc are private sector mutual funds players while Franklin Templeton etc are major foreign mutual fund players At present there are more than 33 players operating in Indian The brief introduction of major players is given as follows ABN AMRO Mutual Fund ABN AMRO Mutual Fund was setup on April 15 2004 with ABN AMRO Trustee (India) Pvt Ltd as the Trustee Company The AMC ABN AMRO Asset Management (India) Ltd was incorporated on November 4 2003 Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial Sun Life Financial is a global organization evolved in 1871 and is being represented in Canada the US the Philippines Japan Indonesia and Bermuda apart from India Birla Sun Life Mutual Fund follows a conservative long-term approach to investment Recently it crossed AUM of Rs 10000 Crore

Bank of Baroda Mutual Fund Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30 1992 under the sponsorship of Bank of Baroda BOB Asset Management Company Limited is the AMC of BOB Mutual Fund and was incorporated on November 5 1992 Deutsche Bank AG is the custodian

HDFC Mutual Fund HDFC Mutual Fund was setup on June 30 2000 with two sponsors namely Housing Development Finance Corporation Limited and Standard Life Investments Limited

HSBC Mutual Fund HSBC Mutual Fund was setup on May 27 2002 with HSBC Securities and Capital Markets (India) Private Limited as the sponsor Board of Trustees HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual Fund

ING Vyasya Mutual Fund ING Vyasya Mutual Fund was setup on February 11 1999 with the same named Trustee Company It is a joint venture of Vysya and ING The AMC ING Investment Management (India) Pvt Ltd was incorporated on April 6 1998

Prudential ICICI Mutual Fund The mutual fund of ICICI is a joint venture with Prudential PLC of America one of the largest life insurance companies in the US of A Prudential ICICI Mutual Fund was setup on 13th of October 1993 with two sponsors Prudential PLC and ICICI Ltd The Trustee Company formed is Prudential ICICI Trust Ltd and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22nd of June 1993 Sahara Mutual Fund Sahara Mutual Fund was set up on July 18 1996 with Sahara India Financial Corporation Ltd as the sponsor Sahara Asset Management Company Private Limited incorporated on August 31 1995 works as the AMC of Sahara Mutual Fund The paid-up capital of the AMC stands at Rs 258 crore

State Bank of India Mutual Fund State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund the India Magnum Fund with a corpus of Rs 225 cr approximately Today it is the largest Bank sponsored Mutual Fund in India They have already launched 35 Schemes out of which 15 have already yielded handsome returns to investors State Bank of India Mutual Fund has more than Rs 5500 Crore as AUM Now it has an investor base of over 8 Lakhs spread over 18 schemes

Tata Mutual Fund Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act 1882 The sponsor for Tata Mutual Fund is Tata Sons Ltd and Tata Investment Corporation Ltd The investment manager is Tata Asset Management Limited and its Tata Trustee Company Pvt Limited Tata Asset Management Limiteds is one of the fastest in the country with mo Kotak Mahindra Mutual Fund Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL It is presently having more than 199818 investors in its various schemes KMAMC started its operations in December 1998 Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk - return profiles It was the first company to launch dedicated gilt scheme investing only in government securities

Reliance Mutual Fund Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act 1882 The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co Limited is the Trustee It was registered on June 30 1995 as Reliance Capital Mutual Fund which was changed on March 11 2004 Reliance Mutual Fund was formed for launching of various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13 2000 sponsored by Standard Chartered Bank The Trustee is Standard Chartered Trustee Company Pvt Ltd Standard Chartered Asset Management Company Pvt Ltd is the AMC which was incorporated with SEBI on December 201999

Franklin Templeton India Mutual Fund The group Franklin Templeton Investments is a California (USA) based company with a global AUM of US$ 4092 bn (as of April 30 2005) It is one of the largest financial services groups in the world Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website They have Open end Diversified Equity schemes Open end Sector Equity schemes Open end Hybrid schemes Open end Tax Saving schemes Open end Income and Liquid schemes Closed end Income schemes and Open end Fund of Funds schemes to offer

Morgan Stanley Mutual Fund India Morgan Stanley is a worldwide financial services company and itrsquos leading in the market in securities investment management and credit services Morgan Stanley Investment Management (MISM) was established in the year 1975 It provides customized asset management services and products to governments corporations pension funds and non-profit organizations Its services are also extended to high net Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF) This is the first close end diversified equity scheme serving the needs of Indian retail investors focusing on a long-term capital appreciation

Escorts Mutual Fund Escorts Mutual Fund was setup on April 15 1996 with Escorts Finance Limited as its sponsor The Trustee Company is Escorts Investment Trust Limited Its AMC was incorporated on December 1 1995 with the name Escorts Asset Management Limited

Alliance Capital Mutual Fund Alliance Capital Mutual Fund was setup on December 30 1994 with Alliance Capital Management Corp of Delaware (USA) as sponsor The Trustee is ACAM Trust Company Pvt Ltd and AMC the Alliance Capital Asset Management India (Pvt) Ltd with the corporate office in Mumbai

Benchmark Mutual Fund Benchmark Mutual Fund was setup on June 12 2001 with Niche Financial Services Pvt Ltd as the sponsor and Benchmark Trustee Company Pvt Ltd as the Trustee Company Incorporated on October 16 2000 and headquartered in Mumbai Benchmark Asset Management Company Pvt Ltd is the AMC

Can bank Mutual Fund

Can bank Mutual Fund was setup on December 19 1987 with Canara Bank acting as the sponsor Can bank Investment Management Services Ltd incorporated on March 2 1993 is the AMC The Corporate Office of the AMC is in Mumbai

Chola Mutual Fund Chola Mutual Fund under the sponsorship of Cholamandalam Investment amp Finance Company Ltd was setup on January 3 1997 Cholamandalam Trustee Co Ltd is the Trustee Company and AMC is Cholamandalam AMC Limited

LIC Mutual Fund Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 It contributed Rs 2 Crore towards the corpus of the Fund LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act 1882 The Company started its business on 29th April 1994 The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the Investment Managers for LIC Mutual Fund

GIC Mutual Fund GIC Mutual Fund sponsored by General Insurance Corporation of India (GIC) a Government of India undertaking and the four Public Sector General Insurance Companies viz National Insurance Co Ltd (NIC) The New India Assurance Co Ltd (NIA) The Oriental Insurance Co Ltd (OIC) and United India Insurance Co Ltd (UII) and is constituted as a Trust in accordance with the provisions of the Indian Trusts Act 1882

Introduction

A mutual fund is a financial intermediary that pools the savings of investors for collective investment in a diversified portfolio of securities A Fund is the Fundrsquos investors share ldquoMutual fundrdquo as all of its returns minus its expenses

The securities and Exchange Board of India (Mutual Fund) Regulation 1969 defines a Mutual Fund as arsquo a Fund established in the form of a trust to raise money though the sale of units to the public or a section of the public under one or more schemes for investing in securities including money market instrument

A Mutual Fund in India can raise resource through sale of units to the public It can be set up in the form of a Trust under the Indian Trust act

Portfolio management services Management of offshore fundsProviding advice to pension or provident funds Management of venture capital funds Management of money market fundsManagement of real estate funds

A mutual fun serves as a link between the investor and the securities market by mobilizing savings from the investors and investing them in the securities market to generate returns Thus a mutual fund is akin to portfolio management services (PMS)

Benefits of Mutual Funds

Professional Management An average investor lacks the Knowledge of capital market operations and does not have resources to reap the benefits of investment Hence he requires the help of an expert It is not only expensive to lsquohire the servicesrsquo of an expert but it is more difficult to identify a real expert Mutual funds are managed by professional manages who have the requisite skills and expensive to analyze the performance and prospects of companies They make possible an organized investment strategy which is hardly possible for an individual investor

Portfolio Diversification an investor undertake risk if he invests all his funds in a single scrip Mutual funds invest in a number of companies across various industries and sectors This diversification reduces the riskiness of the investment Reduction in transaction costs Compared to direct investing in the capital market investing through the funds is relatively less expensive as the benefit of scale is passed on to the investors

Liquidity Investors cannot sell the securities held easily while in case of mutual funds they can easily encash their investment by selling their units to the Fund if it is an open ended scheme or selling them on a stock exchange if it is a close ended

Convenience Investing in mutual fund reduces paperwork saves time and makes investment easy

Flexibility Mutual Funds investors now enjoy income tax benefits Dividens received from mutual fundsrsquo debt schemes are tax

How to Measure a Mutual Funds PerformanceThe world of mutual fund performance is complex and daunting Advertisements in newspapers talk about five-star funds Banner ads talk about the NUMBER ONE FUND in America and histories of past performance refer to returns of 388 over the

last six months If one were to pay attention to all of the talking heads on television all the magazines that promise a list of great funds for the upcoming year and worst of all the advertisements in the print and television media one would be convinced that there are hundreds of funds out there that can tout great performanceThis simply isnt the caseAlthough past performance is certainly not an indication of future results there are some clues to be found about the quality of a fund by correctly measuring its past performance Usually what will be discerned through a careful study of past performance is that not many mutual funds actually deliver anything close to what their advertisements claimWhen looking at a mutual funds past performance a good and necessary step is to identify its Morningstar style box Morningstar has broken down the world of domestic mutual funds into small- medium- and large-cap funds and by objective -- growth value or blend (Click the link above for more details on any of these terms)The Morningstar style box looks like a tic-tac-toe board as such

Once you know which style box a fund is in you can compare it with the other mutual funds that are similarly classified and in many cases to a relevant index fundGoing through this exercise and comparing a funds returns over three years five years and ten years with the appropriate market index and other similarly styled funds will be much more useful than simply comparing a funds returns to the SampP 500 or seeing how many stars it has While the SampP 500 is a very useful benchmark for the market as a whole you will get a much better idea about a specific funds relative merits by comparing it with its style box competition than you will by comparing it with the market as a whole or the SampP 500 in particularIn 1998 for example approximately 90 of all mutual funds lost to the returns of the SampP 500 SampP 500 index funds are categorized by Morningstar as large-cap blend funds meaning that the SampP 500 is dominated by neither growth stocks nor value stocks

While 90 of all mutual funds trailed the SampP the majority of funds that were categorized as large-cap growth funds beat the SampP in 1998 Does this mean that large-cap growth fund managers were particularly good at their jobs No While actively managed large-cap growth funds averaged a return of 36 for 1998 beating the SampP by

about 8 the Vanguard Large-Cap Growth Index Fund was up over 42 for the year So if you see any advertisements for mutual funds showing that the fund beat the SampP over the course of 1998 find out whether its categorized as a large-cap growth fund If it is dont be too impressed -- it should have soundly beaten the returns of the SampP 500 IndexVanguard now provides index funds that match seven of the nine style boxes (Vanguard does not have specific indices for mid-cap growth or mid-cap value) and these funds are very good measuring sticks for the rest of the actively managed fund worldThere are many fine places on the Internet where you can quickly ascertain the relative performance of any mutual fund for which you are interested in measuring the performance Go to Morningstarcom and look up the fund by either entering the name of the fund or its ticker symbol if you know it Morningstar will then show you a healthy selection of useful data on your fund including its style box categorization its performance year-by-year compared to the SampP 500 and also to a more appropriate index such as the Wilshire 4500 if it is not a large-cap fundYou can also measure your fund once you know its style box categorization at SmartMoney Mutual Fund Snapshots SmartMoneys site has lots of pretty colors and an interesting function that allows you to compare funds with other funds for one- three- and five-year periods To get a good glimpse of how the funds in your 401(k) plan are doing compared to the appropriate index fund here are the places to compare your funds to Vanguards style-box-specific index fundsSmall-cap funds NAESX (Russell 2000 Stock Index) Mid-cap funds SPMIX (SampP Midcap 400 Index) Large-cap value VIVAX (BARRASampP Value Index) Large-cap blend VFINX (SampP 500 Stock Index) Large-cap growth VIGRX (BARRASampP Growth Index) Vanguard has recently started a mid-cap index fund (VIMSX) a small-cap value fund (VISVX) and a small-cap growth fund (VISGX) However none of these funds is old enough to provide meaningful information If you are looking to assess mid-cap funds it is probably best to compare them to the California Investment Trust SampP Midcap Fund (SPMIX) If you are looking to assess the quality of small-cap value funds or small-cap growth funds at the present it is probably best to compare your fund with the small-cap blend index funds such as Vanguards Small Cap Index Fund (NAESX)Going through the process of comparing mutual funds returns to an appropriate index or index fund should reveal to you that the track record of most managed mutual funds is terribly unimpressive Some of course will beat their appropriate indices or index funds but it is a very very rare fund indeed that consistently outperforms the market

Superior Ballistics Inc Mission StatementBriefly our goal is to advance the state of the art in cartridge design by creating chamberings having the greatest performance potential This is achieved through application of modern solid fuel rocket motor internal ballistics technology This is unique to SMctrade designsThe associated articles should give interested readers a good understanding of our design theory For any given usable case capacity and working chamber pressure SMc designs generate significantly more velocity and do so while creating far less barrel heating As a bonus for any given performance level compared to conventional chamberings SMc designs generate less felt recoil and sight picture disturbance As is explained in the associated articles these results conform to Newtons laws

Incorporated 2961987

Ownership Public

Ownership Pattern

Foreign - 37 Domestic-63

Sponsor

State Bank of India Societe Generale Asset Management

Total Assets (Rs Cr) 2697736 as on

5312008

Equity Funds (Open End) 14

Debt Funds (Open End) 12

Short-term Debt (Open End) 12

Hybrid Funds (Open End) 3

Closed-end Funds 22

Chief Executive Syed Shahabuddin

Chief Investment Officer Sanjay Sinha

Investor Relations Officer G Kandasubramanian

Address

191 Maker Tower E 19th FloorCuffe Parade Mumbai - 400005

Telephone (022) 22180221 27

Fax (022) 22189663

Performance Measures Of Mutual FundsMutual Fund industry today with about 34 players and more than five hundred schemes is one of the most preferred investment avenues in India However with a plethora of schemes to choose from the retail investor faces problems in selecting funds Factors such as investment strategy and management style are qualitative but the funds record is an important indicator too Though past performance alone can not be indicative of future performance it is frankly the only quantitative way to judge how good a fund is at present Therefore there is a need to correctly assess the past performance of different mutual funds Worldwide good mutual fund companies over are known by their AMCs and this fame is directly linked to their superior stock selection skills For mutual funds to grow AMCs

must be held accountable for their selection of stocks In other words there must be some performance indicator that will reveal the quality of stock selection of various AMCsReturn alone should not be considered as the basis of measurement of the performance of a mutual fund scheme it should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them Risk associated with a fund in a general can be defined as variability or fluctuations in the returns generated by it The higher the fluctuations in the returns of a fund during a given period higher will be the risk associated with it These fluctuations in the returns generated by a fund are resultant of two guiding forces First general market fluctuations which affect all the securities present in the market called market risk or systematic risk and second fluctuations due to specific securities present in the portfolio of the fund called unsystematic risk The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund Systematic risk on the other hand is measured in terms of Beta which represents fluctuations in the NAV of the fund vis-agrave-vis market The more responsive the NAV of a mutual fund is to the changes in the market higher will be its beta Beta is calculated by relating the returns on a mutual fund with the returns in the market While unsystematic risk can be diversified through investments in a number of instruments systematic risk can not By using the risk return relationship we try to assess the competitive strength of the mutual funds vis-agrave-vis one another in a better way In order to determine the risk-adjusted returns of investment portfolios several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class The most important and widely used measures of performance are Oslash The Treynor MeasureOslash The Sharpe MeasureOslash Jenson ModelOslash Fama Model

The Treynor Measure Developed by Jack Treynor this performance measure evaluates funds on the basis of Treynors Index This Index is a ratio of return generated by the fund over and above risk free rate of return (generally taken to be the return on securities backed by the government as there is no credit risk associated) during a given period and systematic risk associated with it (beta) Symbolically it can be represented asTreynors Index (Ti) = (Ri - Rf)Bi Where Ri represents return on fund Rf is risk free rate of return and Bi is beta of the fund All risk-averse investors would like to maximize this value While a high and positive Treynors Index shows a superior risk-adjusted performance of a fund a low and negative Treynors Index is an indication of unfavorable performance The Sharpe Measure In this model performance of a fund is evaluated on the basis of Sharpe Ratio which is a ratio of returns generated by the fund over and above risk free rate of return and the total risk associated with it According to Sharpe it is the total risk of the fund that the

investors are concerned about So the model evaluates funds on the basis of reward per unit of total risk Symbolically it can be written asSharpe Index (Si) = (Ri - Rf)Si Where Si is standard deviation of the fund While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund a low and negative Sharpe Ratio is an indication of unfavorable performance

Comparison of Sharpe and Treynor Sharpe and Treynor measures are similar in a way since they both divide the risk premium by a numerical risk measure The total risk is appropriate when we are evaluating the risk return relationship for well-diversified portfolios On the other hand the systematic risk is the relevant measure of risk when we are evaluating less than fully diversified portfolios or individual stocks For a well-diversified portfolio the total risk is equal to systematic risk Rankings based on total risk (Sharpe measure) and systematic risk (Treynor measure) should be identical for a well-diversified portfolio as the total risk is reduced to systematic risk Therefore a poorly diversified fund that ranks higher on Treynor measure compared with another fund that is highly diversified will rank lower on Sharpe Measure

Jenson ModelJensons model proposes another risk adjusted performance measure This measure was developed by Michael Jenson and is sometimes referred to as the Differential Return Method This measure involves evaluation of the returns that the fund has generated vs the returns actually expected out of the fund given the level of its systematic risk The surplus between the two returns is called Alpha which measures the performance of a fund compared with the actual returns over the period Required return of a fund at a given level of risk (Bi) can be calculated asRi = Rf + Bi (Rm - Rf) Where Rm is average market return during the given period After calculating it alpha can be obtained by subtracting required return from the actual return of the fundHigher alpha represents superior performance of the fund and vice versa Limitation of this model is that it considers only systematic risk not the entire risk associated with the fund and an ordinary investor can not mitigate unsystematic risk as his knowledge of market is primitive

Fama Model

The Eugene Fama model is an extension of Jenson model This model compares the performance measured in terms of returns of a fund with the required return commensurate with the total risk associated with it The difference between these two is taken as a measure of the performance of the fund and is called net selectivity The net selectivity represents the stock selection skill of the fund manager as it is the excess return over and above the return required to compensate for the total risk taken by the fund manager Higher value of which indicates that fund manager has earned returns well above the return commensurate with the level of risk taken by him Required return can be calculated as Ri = Rf + SiSm(Rm - Rf) Where Sm is standard deviation of market returns The net selectivity is then calculated by subtracting this required return from the actual return of the fund Among the above performance measures two models namely Treynor measure and Jenson model use systematic risk based on the premise that the unsystematic risk is diversifiable These models are suitable for large investors like institutional investors with high risk taking capacities as they do not face paucity of funds and can invest in a number of options to dilute some risks For them a portfolio can be spread across a number of stocks and sectors However Sharpe measure and Fama model that consider the entire risk associated with fund are suitable for small investors as the ordinary investor lacks the necessary skill and resources to diversified Moreover the selection of the fund on the basis of superior stock selection ability of the fund manager will also help in safeguarding the money invested to a great extent The investment in funds that have generated big returns at higher levels of risks leaves the money all the more prone to risks of all kinds that may exceed the individual investors risk appetite

As students of MBA we had been given the chance to do a grand study on any industry and any field of our choice This was a platform for us to perform our best and explore our potentials in the areas of our interest State Bank of India BUY CMP Rs 73765

Investment Argument State Bank of India (SBI) Indias premier commercial bank with a sizeable market share of around 18 is almost considered to be proxy for the Indian Banking System and for the Indian Economy too SBI Groups core strength lies in the vast geographical reach of over 13800 branches covering the remotest corner of the country The group has an asset base of around Rs 6300bn as on FY2005 The SBI Group with its 71 subsidiaries joint ventures associates and RRBs has positioned itself as the largest Universal Bank in the country catering to every segment of financial services ranging

from traditional banking products to factoring services credit cards mutual fund life insurance investment banking asset reconstruction etc The SBI Group has fast narrowed its technology gap with the private sector by aggressively rolling out its technology upgradation plans SBI has fully computerized its network of over 13800 branches with its core banking solution also implemented at over 7000 branches The Bank also has the largest ATM network (over 5500 ATMs) The Bank has considerably leveraged its strengths of a vast geographical reach and customer base to tap its potential in Retail Assets SBI has built up a whopping Retail Assets Portfolio of over Rs 550bn in a span of around 3-4 years SBI has embarked on the Business Process Re-engineering exercise aimed at re-designing the business processes setting up of centralized processing unit and management performance re-design to improve its operational efficiency and enhance customer satisfaction Valuation At the CMP Rs 857 the stock trades at 78x FY2007E EPS of Rs 1104 14x FY2007E BV of Rs 6294 and 16x FY2007E Adj BV of Rs 5486 We recommend a Buy Risk ndash Return Trade off Market Cap (Rs cr) 45112 Market Cap (US$ mn) 10206 52 Week High Low 962 577 Avg Daily Volume 1279085 Face Value (Rs) 10 BSE Sensex 9743 Nifty 2941 BSE Code 500112 NSE Code SBIN Reuters Code SBIBO Bloomberg Code SBININ Shareholding Pattern () Government 597 MF Banks Indian FIs 120 FII NRISs OCBs 198

63 Exhibit 2 Earnings amp Margins Source Company Q3FY2006 Performance SBIrsquos Q3FY2006 performance was slightly disappointing Net Profit registered a mere 14 rise to Rs 1115cr much below our expectations of Rs 1312cr Lower Earnings was largely on account of higher jump in Staff Costs and Lower Non-Interest Income The Bank reported a Net Interest Income (NII) growth of 153 to Rs 4220cr beating our expectations of Rs 4086cr Growth in NII was partly attributable to Interest on Income Tax refund to the tune of Rs 954cr However the Bank reported a decent growth in Core Income as Interest on Advances increased by 356 on higher business volumes Interest Expenses too were on the higher side as Interest on Deposits grew by 182 and Interest on Borrowings went up by over 100 during the quarter The higher Interest outgo could be on account of higher borrowings to meet the IMD redemption of December05 The Banks performance on the Non-Interest Income front too was disappointing as aggregate Non-Interest Income declined by 178 to Rs 1840cr Profit on Sale of Investments too declined sharply by 863 to Rs 130cr (Rs 948cr) However excluding Treasury gains the Non-Interest Income moved up by 326 due to exchange gains on IMD Redemption to the tune of Rs 532cr in the absence of which other Non-Interest Income fell by 86 A substantial spike of 494 in Staff Costs pushed up the operating overheads during the quarter Other operating overheads were higher by 145 to Rs 937cr Subsequently Aggregate Operating Overheads of the Bank ended 38 to Rs 3461cr higher As a result CostIncome ratio of SBI rose to 571 (425) Provision for Tax during Q3FY2006 increased substantially by 749 to Rs 1015cr However Aggregate Provisions declined by 352 on account of a 242 fall in Investment Depreciation 592 decline in Other Provisions and a write back of Rs 103cr towards NPAs

MF going global The way forwardWhile many have been heard extolling the benefits of investing abroad most investors and advisors who subscribe to this go global theory are unable to find an answer to the fundamental question Where to invest and why

During the ING Global Investment Marathon while the investment managers at ING stressed on the need for global investment they also ensured that these questions were well addressed

A series of workshops each focussing on a different economy and a different investment avenue were organised to assist investors Starting with opportunities in Asia in terms of equity debt instruments private equity and real estate the workshops covered an entire gamut of emerging markets in Europe United States and Latin America

The Asian economies especially those of India and China have over a period of time emerged as two of the strongest emerging economies of the world But there do exist opportunities even beyond the great wall

If India has been highly rated for its strong domestic consumption and China for its rapid strides in infrastructure development Brazil and Russia stand out for their power play in the commodities segment With commodity prices especially those of oil at an all time high these two economies have more to gain than lose

According to Maarten-Jan Bakkum senior product specialist ING apart from high commodity prices the Latin American countries especially Mexico have gained on account of low vulnerability to the US recession Also these economies have now begun to see a surge in the infrastructure investments as well as in private consumption

Russia on the other hand boasts of strong balance sheet with over $400 billion in forex reserves over $150 billion in the oil stabilisation fund and almost no outstanding debt

Michel Wetser senior portfolio specialist ING stated that the country was also expected to see heavy investment in the infrastructure space and surge of domestic demand in the under-penetrated consumer sector Like Latin America Russia is also sheltered from global economic weakness given its low correlation with the US economy

The workshops also emphasised the importance of tactical asset allocation not just in various economies but also in variety of asset classes like property fixed interest instruments and cash Investment tactics lie in the ability to invest across economies and asset classes that have a low correlation

According to Mugunthan Siva investment strategist and portfolio manager ING investment allocations are ought to be based on price momentum valuations relative to other asset classes and risk embedded within the asset class

While the knowledge has been imparted it would be a futile endeavour if the same is not spread across Vineet Vohra thus emphasised the need of carrying the enlightened torch of knowledge beyond the four walls

Superior Ballistics Inc Mission Statement

Briefly our goal is to advance the state of the art in cartridge design by creating chamberings having the greatest performance potential This is achieved through application of modern solid fuel rocket motor internal ballistics technology This is unique to SMctrade designsThe associated articles should give interested readers a good understanding of our design theory For any given usable case capacity and working chamber pressure SMc designs generate significantly more velocity and do so while creating far less barrel heating As a bonus for any given performance level compared to conventional chamberings SMc designs generate less felt recoil and sight picture disturbance As is explained in the associated articles these results conform to Newtons laws

Historical Background(To date obtaining factory-made properly headstamped cases for SMctrade designs has been a problem By January 2006 we are promised properly formed and headstamped cases for the 5mm35 SMc We are working toward obtaining cases for the 2240 SMc sometime in 2006 Availability of other sizes will depend upon how quickly this concept achieves success With Savage now offering the 535 through its Custom Shop our goal it to eventually offer target varminting and big game hunting chamberings with properly headstamped cases factory loaded ammunition and quality commercial rifles)Historically cartridge design has generally been secondary to gun design Chosen case configuration ndash cylindrical tapered or bottlenecked ndash has been in direct response to desired energy level (usually) availability of existing cases from which to create a new design and (most importantly) fitment of any new design into a particular gun (whether a new or an existing design) Rarely has a gun been designed that requires creation of an entirely new cartridge Typically a new gun or gun chambering was designed and then a new cartridge was created ndash through modifications of an existing case type ndash to fit that gunHence most current and obsolete cartridge designs have resulted from alteration of an existing case ndash eg necking 308 Winchester (simply a shortened 30-06) down to 24-caliber to make the 243 Winchester Such conversions are relatively easy Making a new bunter (the tool that creates the headstamp) and the final forming tools required for such a conversion costs about $1000 circa 2000 Conversely creating new tooling (as required to create an entirely new case design) now costs more than $20000Hence usually when a new chambering is introduced it is merely a necked (up or down) version of an existing case more rarely body taper or case body length are altered very rarely a new design has a unique case head diameter (the 10m Auto is a recent example) Adopting a new case to an existing gun often requires significant alterations and sometimes an entirely new designTherefore lacking a compelling reason to create a case with a different head diameter ndash such as fitting a specific gun design or achieving improved ballistics ndash this approach to new case designs is simply too expensive For these reasons historically other than as a result of pure coincidence case configuration has been completely unrelated to internal ballistic efficiency Enter the SMc eraConversely through trial and error independent experimenters have routinely been improving cartridge designs since almost the beginning of the self-contained cartridge era These experimenters often improved factory designs to significant ballistic advantage but they did so without any internal ballistics understanding In some cases

they or others theorized (generally incorrectly) upon the performance of these improved designs A good understanding of what happened inside a cartridge case after the striker fell simply did not exist We as Superior Ballistic Inc used first principles theory combined with well developed solid fuel rocket motor internal ballistics analysis techniques to further the state of the art in gun cartridge designWe concluded that in the ideal design internal case diameter and bullet diameter would be linked the correct relationship is near 21 to 1 Hence other than by pure serendipity ideal case designs cannot be based upon existing cases Specifically existing case diameters correctly match only a few standard bullet diameters for optimum efficiencyNearly ideal SMc designs in calibers 20 22 24 25 and 26 and 28 can be achieved using existing cases ndash respectively 6mm Norma BR 284 Win or 45-70 7mm SAUM or 300 WSM 416 Rigby and 505 Gibbs The SMc 20-caliber conversion is a direct modification of the 6mm Norma BR case through resizing only Forming the 22-caliber SMc from Winchester 45-70 cases is feasible through many necking steps with annealing and neck turning (to make it work in any standard bolt-action rifle the case head must be re-cut to rimless configuration) ndash while the 284 case is of the correct diameter to make a 22-caliber SMc case 284 case walls are far too thick Forming the 24-caliber SMc requires case shortening and driving the 7mm SAUM case shoulder back significantly which is feasible (this requires annealing) ndash we believe the WSM case might also be practical for this application SMc designs in 26- and 28-caliber are impracticably difficult because it is necessary to redraw the case body to thin it sufficiently so that necking is possibleConventional receivers will handle SMc designs only up to 26-caliber Several custom manufacturers make receivers that will handle SMc designs up to 30-caliber but these are relatively expensive (an SMc for 0375 bullets could be adapted to 50 BMG receivers but again case conversion would be monumentally difficult) We are working toward correcting these limitations and at least one mainstream manufacturer has shown interest in introducing a larger action that would work with a 30-caliber SMcAs discussed in the associated articles we also recognized that shoulder design is important as is neck length We have designed all SMc cartridges accordingly with a specifically shaped elliptical shoulder and an unusually long case neck The former contributes to ballistic efficiency the latter contributes to long barrel lifeHandloaders should also be aware that in SMc cartridges the relative speed of propellants is not as might be expected Generally all propellants tend to burn faster than when used in conventional cartridges the slower the propellant the greater the bias Moreover extruded (tubular) propellants seem to show a greater bias than do ball-type propellantsSince we believed (and have since proven) that ideal case designs would provide sufficient ballistic advantages to warrant the effort we set out to create and test such designs Parallel to this testing was our decision to patent this new art Comparatively the latter was a far more difficult decision We certainly do not want to hamper state-of-the-art advancement but we recognized that our investment would be significantWe now hold patents covering all aspects of SMc cartridge chamber and tooling designs Since these are parametric patents it is impossible to circumvent the concept by making minor dimensional changes

Corporate mission is another way of describing a companys management philosophy a companys long-term values and raison detre that do not change easily because of top management shifts or market changes Corporate mission establishes a clear long-term goal for a company for all employees to aspire In contrast a corporate vision concretely describes how a company sees itself in the future In the current age of rapid change a corporate vision is of a more medium-term nature

Corporate Vision

We shall undertake judgments on actions based not on whehter they violate the law or profit the company but on whether or not they are socially justifiable In the book entitled Zen of Vegetable Roots

(Caigentan) which is a collection of social teachings that was written by Hong Ying Ming during the era of the Ming Dynasty it is written Virtue is the foundation of a business

Bringing financial innovations to the forefront of the financial industry capitalizing on new opportunities emerging via the Internet and developing financial services that further profit customers

Becoming the leader in creating and growing pivotal 21st-century industry

Continuing to be a company that evolves of its own volition through formation of an organization that flexibly adapts to changes in the operating environment and a corporate DNA composed of Ingenuity and Self-transformation

Ensuring each company in the SBI Group carries out its social and economic responsibilities to all stakeholders and society

An overview of Mutual Funds in IndiaIntroduction

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal The money collected amp invested by the fund manager in different types of securities depending upon the objective of the scheme These could range from shares to debentures to money market instruments The income earned through these investments and its unit holders in proportion to the number of units owned by them (pro rata) shares the capital appreciation realized by the scheme Thus a Mutual Fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified professionally managed portfolio at a relatively low cost Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds Each Mutual Fund scheme has a defined investment objective and strategy A mutual fund is the answer to all these situations It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor In effect the mutual fund vehicle exploits economies of scale in all three areas - research investments and transaction processing While the concept of individuals coming together to invest money collectively is not new the mutual fund in its present form is a 20th century phenomenon In fact mutual funds gained popularity only after the Second World War Globally there are thousands of firms offering tens of thousands of mutual funds with different

investment objectives Today mutual funds collectively manage almost as much as or more money as compared to banks CONCEPT A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal The money thus collected is then invested in capital market instruments such as shares debentures and other securities The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them Thus a Mutual Fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified professionally managed basket of securities at a relatively low cost The flow chart below describes broadly the working of a mutual fund THE SECURITY AND EXCHANGE BOARD OF INDIA (Mutual Funds) REGULATIONS1996 defines a mutual fund as a a fund establishment in the form of a trust to raise money through the sale of units to the public or a section of the public under one or more schemes for investing in securities including money market instruments Mutual Funds have been a significant source of investment in both government and corporate securities It has been for the decades the monopoly of the state with UTI being the key player with invested funds exceeding Rs 300 bn (US $ 10 bn) The state owned insurance companies also hold a portfolio of stocks Presently numerous mutual funds exist including private and foreign companies Banks - mainly state owned too have established Mutual Funds (MFs) Foreign participation in mutual funds and asset management companies permitted on a case-by-case basis Structure of the Indian mutual fund industry The Indian mutual fund industry is dominated by the Unit Trust of India which has a total corpus of Rs700bn collected from more than 20 million investors The UTI has many fundsschemes in all categories ie equity balanced income etc with some being open-ended and some being closed-ended The Unit Scheme 1964 commonly referred to as US 64 which is a balanced fund is the biggest scheme with a corpus of about Rs200bn Most of its investors believe that the UTI is government owned and controlled which while legally incorrect is true for all practical purposes The second largest category of mutual funds is the ones floated by nationalized banks Can bank Asset Management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones Some of the AMCs operating currently are

Name of the AMC Nature of ownership

Alliance Capital Asset Management (I) Private Limited Private foreign

Birla Sun Life Asset Management Company Limited Private Indian

Bank of Baroda Asset Management Company Limited Banks

Bank of India Asset Management Company Limited Banks

Can bank Investment Management Services Limited Banks

Cholamandalam Cazenove Asset Management Company Limited Private foreign

Dundee Asset Management Company Limited Private foreign

DSP Merrill Lynch Asset Management Company Limited Private foreign

Escorts Asset Management Limited Private Indian

First India Asset Management Limited Private Indian

GIC Asset Management Company Limited Institutions

IDBI Investment Management Company Limited Institutions

Indfund Management Limited Banks

ING Investment Asset Management Company Private Limited Private foreign

J M Capital Management Limited Private Indian

Jardine Fleming (I) Asset Management Limited Private foreign

Kotak Mahindra Asset Management Company Limited Private Indian

Kothari Pioneer Asset Management Company Limited Private Indian

Jeevan Bima Sahayog Asset Management Company Limited Institutions

Morgan Stanley Asset Management Company Private Limited Private foreign

Punjab National Bank Asset Management Company Limited Banks

Reliance Capital Asset Management Company Limited Private Indian

State Bank of India Funds Management Limited Banks

Shriram Asset Management Company Limited Private Indian

Sun F and C Asset Management (I) Private Limited Private foreign

Sundaram Newton Asset Management Company Limited Private foreign

Tata Asset Management Company Limited Private Indian

Credit Capital Asset Management Company Limited Private Indian

Templeton Asset Management (India) Private Limited Private foreign

Unit Trust of India Institutions

Zurich Asset Management Company (I) Limited Private foreign

Recent trends in mutual fund industry The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players Many nationalized banks got into the mutual fund business in the early nineties and got off to a good start due to the stock market boom prevailing then These banks did not really understand the mutual fund business and they just viewed it as another kind of banking activity Few hired specialized staff and generally chose to transfer staff from the parent organizations The performance of most of the schemes floated by these funds was not good Some schemes had offered guaranteed returns and their parent organizations had to bail out these AMCs by paying large amounts of money as the difference between the guaranteed and actual returns The service levels were also very bad Most of these AMCs have not been able to retain staff float new schemes etc and it is doubtful whether barring a few exceptions they have serious plans of continuing the activity in a major way The experience of some of the AMCs floated by private sector Indian companies was also very similar They quickly realized that the AMC business is a business which makes money in the long term and requires deep-pocketed support in the intermediate years Some have sold out to foreign owned companies some have merged with others and there is general restructuring going on They can be credited with introducing many new practices such as new product innovation sharp improvement in service standards and disclosure usage of technology broker education and support etc In fact they have forced the industry to upgrade itself and service levels of organizations like UTI have improved dramatically in the last few years in response to the competition provided by these

Performance of Mutual Funds in India

Let us start the discussion of the performance of mutual funds in India from the day the concept of mutual fund took birth in India The year was 1963 Unit Trust of India invited investors or rather to those who believed in savings to park their money in UTI Mutual Fund The performance of mutual funds in India in the initial phase was not even closer to satisfactory level People rarely understood and of course investing was out of question But yes some 24 million shareholders were accustomed with guaranteed high returns by the beginning of liberalization of the industry in 1992 This good record of UTI became marketing tool for new entrants The expectations of investors touched the sky in profitability factor However people were miles away from the preparedness of risks factor after the liberalization

The Assets under Management of UTI was Rs 67bn by the end of 1987 Let me concentrate about the performance of mutual funds in India through figures From Rs 67bn the Assets Under Management rose to Rs 470 bn in March 1993 and the figure had a three times higher performance by April 2004 It rose as high as Rs 1540bn The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992 Those days the market regulations did not allow portfolio shifts into alternative investments There was rather no choice apart from holding the cash or to further continue investing in shares One more thing to be noted since only closed-end funds were floated in the market the investors disinvested by selling at a loss in the secondary market

The performance of mutual funds in India suffered qualitatively The 1992 stock market scandal the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors Partly owing to a relatively weak stock market performance mutual funds have not yet

recovered with funds trading at an average discount of 1020 percent of their net asset value The measure was taken to make mutual funds the key instrument for long-term saving The more the variety offered the quantitative will be investors At last to mention as long as mutual fund companies are performing with lower risks and higher profitability within a short span of time more and more people will be inclined to invest until and unless they are fully educated with the dos and donts of mutual funds

Market Trends COMPARISION OF MUTUAL FUNDS WITH OTHER INSTRUMENT A lone UTI with just one scheme in 1964 now competes with as many as 400 odd products and 34 players in the market In spite of the stiff competition and losing market share Last six years have been the most turbulent as well as exiting ones for the industry New players have come in while others have decided to close shop by either selling off or merging with others Product innovation is now passeacute with the game shifting to performance delivery in fund management as well as service Those directly associated with the fund management industry like distributors registrars and transfer agents and even the regulators have become more mature and responsible The industry is also having a profound impact on financial markets While UTI has always been a dominant player on the bourses as well as the debt markets the new generations of private funds which have gained substantial mass are now flexing their muscles Fund managers by their selection criteria for stocks have forced corporate governance on the industry Rewarding honest and transparent management with higher valuations has created a system of risk-reward created where the corporate sector is more transparent then before Funds have shifted their focus to the recession free sectors like pharmaceuticals FMCG and technology sector Funds performances are improving Funds collection which averaged at less than Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in 1998-99 In the current year mobilization till now have exceeded Rs300bn Total collection for the current financial year ending March 2000 is expected to reach Rs450bn What is particularly noteworthy is that bulk of the mobilization has been by the private sector mutual funds rather than public sector mutual funds Indeed private MFs saw a net inflow of Rs 781934 Crore during the first nine months of the year as against a net inflow of Rs60440 Crore in the case of public sector funds MUTUAL FUNDS ADVANTAGES The benefits on offer are many with good post-tax returns and reasonable safety being the hallmark that we normally associate with them Some of the other major benefits of investing in them are

Number of available options Mutual funds invest according to the underlying investment objective as specified at the time of launching a scheme So we have equity funds debt funds gilt funds and many others that cater to the different needs of the investor The availability of these options makes them a good option While equity funds can be as risky as the stock markets themselves debt funds offer the kind of security that aimed at the time of making investments Money market funds offer the liquidity that desired by big investors who wish to park surplus funds for very short-term periods The only pertinent factor here is that the fund has to selected keeping the risk profile of the investor in mind because the products listed above have different risks associated with them So while equity funds are a good bet for a long term they may not find favor with corporate or High Net worth Individuals (HNIs) who have short-term needs Diversification Investments spread across a wide cross-section of industries and sectors and so the risk is reduced Diversification reduces the risk because not all stocks move in the same direction at the same time One can achieve this diversification through a Mutual Fund with far less money than one can on his own Professional Management Mutual Funds employ the services of skilled professionals who have years of experience to back them up They use intensive research techniques to analyze each investment option for the potential of returns along with their risk levels to come up with the figures for performance that determine the suitability of any potential investment Potential of Returns

Returns in the mutual funds are generally better than any other option in any other avenue over a reasonable period People can pick their investment horizon and stay put in the chosen fund for the duration Equity funds can outperform most other investments over long periods by placing long-term calls on fundamentally good stocks The debt funds too will outperform other options such as banks Though they are affected by the interest rate risk in general the returns generated are more as they pick securities with different duration that have different yields and so are able to increase the overall returns from the

Get Focused I will admit that investing in individual stocks can be fun because each company has a unique story However it is important for people to focus on making money Investing is not a game Your financial future depends on where you put you hard-earned dollars and it should not take lightly

Efficiency By pooling investors monies together mutual fund companies can take advantage of economies of scale With large sums of money to invest they often trade commission-free and have personal contacts at the brokerage firms Ease of Use Can you imagine keeping track of a portfolio consisting of hundreds of stocks The bookkeeping duties involved with stocks are much more complicated than owning a mutual fund If you are doing your own taxes or are short on time this can be a big deal Wealthy stock investors get special treatment from brokers and wealthy bank account holders get special treatment from the banks but mutual funds are non-discriminatory It doesnt matter whether you have $50 or $500000 you are getting the exact same manager the same account access and the same investment Risk In general mutual funds carry much lower risk than stocks This is primarily due to diversification (as mentioned above) Certain mutual funds can be riskier than individual stocks but you have to go out of your way to find them With stocks one worry is that the company you are investing in goes bankrupt With mutual funds that chance is next to nil Since mutual funds typically hold anywhere from 25-5000 companies all of the companies that it holds would have to go bankrupt I will not argue that you should not ever invest in individual stocks but I do hope you see the advantages of using mutual funds and make the right choice for the money that you really care about Drawbacks of Mutual Funds Mutual funds have their drawbacks and may not be for everyone No Guarantees No investment is risk free If the entire stock market declines in value the value of mutual fund shares will go down as well no matter how balanced the portfolio Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own However anyone who invests through a mutual fund runs the risk of losing money Fees and commissions All funds charge administrative fees to cover their day-to-day expenses Some funds also charge sales commissions or loads to compensate brokers financial consultants or financial planners Even if you dont use a broker or other financial adviser you will pay a sales commission if you buy shares in a Load Fund Taxes During a typical year most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios If your fund makes a profit on its sales you will pay taxes on the income you receive even if you reinvest the money you made Management risk When you invest in a mutual fund you depend on the funds manager to make the right decisions regarding the funds portfolio If the manager does not perform as well as you had hoped you might not make as much money on your investment as you expected Of course if you invest in Index Funds you forego management risk because these funds do not employ managers Regulatory Aspects Schemes of a Mutual Fund The asset management company shall launch no scheme unless the trustees approve such scheme and a copy of the offer document has filed with the Board Every mutual fund shall along with the offer document of each scheme pay filing fees

The offer document shall contain disclosures which are adequate in order to enable the investors to make informed investment decision including the disclosure on maximum investments proposed to make by the scheme in the listed securities of the group companies of the sponsor a close-ended scheme shall fully redeemed at the end of the maturity period Unless a majority of the unit holders otherwise decide for its rollover by passing a resolution The mutual fund and asset management company shall be liable to refund the application money to the applicants- (i) If the mutual fund fails to receive the minimum subscription amount referred to in clause (a) of sub-regulation (1) (ii) If the moneys received from the applicants for units are in excess of subscription as referred to in clause (b) of sub-regulation (1) Rules Regarding Advertisement The offer document and advertisement materials shall not be misleading or contain any statement or opinion which are incorrect or false General Obligations The financial year for all the schemes shall end as of March 31 of each year Every mutual fund or the asset management company shall prepare in respect of each financial year an annual report and annual statement of accounts of the schemes and the fund as specified in Eleventh Schedule Every mutual fund shall have the annual statement of accounts audited by an auditor who is not in any way associated with the auditor of the asset management company Restrictions on Investments A mutual fund scheme shall not invest more than 15 of its NAV in debt instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act Such investment limit may be extended to 20 of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of asset Management Company Conclusion Mutual funds are funds that pool the money of several investors to invest in equity or debt markets Mutual Funds could be Equity funds Debt funds or balanced funds Fund are selected on quantitative parameters like volatility FAMA Model risk adjusted returns and rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions due diligence processes with fund managers

Market Trends A lone UTI with just one scheme in 1964 now competes with as many as 400 odd products and 34 players in the market In spite of the stiff competition and losing market share UTI still remains a formidable force to reckon with Last six years have been the most turbulent as well as exiting ones for the industry New players have come in while others have decided to close shop by either selling off or merging with others Product innovation is now passeacute with the game shifting to performance delivery in fund management as well as service Those directly associated with the fund management industry like distributors registrars and transfer agents and even the regulators have become more mature and responsibleThe industry is also having a profound impact on financial markets While UTI has always been a dominant player on the bourses as well as the debt markets the new generation of private funds which have gained substantial mass are now seen flexing their muscles Fund managers by their selection criteria for stocks have forced corporate governance on the industry By rewarding honest and transparent management with higher valuations a system of risk-reward has been created where the corporate sector is more transparent then beforeFunds have shifted their focus to the recession free sectors like pharmaceuticals FMCG and technology sector Funds performances are improving Funds collection which averaged at less than Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in 1998-99 In the current year mobilization till now have exceeded Rs300bn Total collection for the current financial year ending March 2000 is expected to reach Rs450bnWhat is particularly noteworthy is that bulk of the mobilization has been by the private sector mutual funds rather than public sector mutual funds Indeed private MFs saw a net inflow of Rs781934 crore during the first nine months of the year as against a net inflow of Rs60440 crore in the case of public sector fundsMutual funds are now also competing with commercial banks in the race for retail investorrsquos savings and corporate float money The power shift towards mutual funds has become obvious The coming few years will show that the traditional saving avenues are losing out in the current scenario Many investors are realizing that investments in savings accounts are as good as locking up their deposits in a closet The fund mobilization trend by mutual funds in the current year indicates that money is going to mutual funds in a big way The collection in the first half of the financial year 1999-2000 matches the whole of 1998-99India is at the first stage of a revolution that has already peaked in the US The US boasts of an Asset base that is much higher than its bank deposits In India mutual fund

assets are not even 10 of the bank deposits but this trend is beginning to change Recent figures indicate that in the first quarter of the current fiscal year mutual fund assets went up by 115 whereas bank deposits rose by only 17 (Source Thinktank The Financial Express September 99) This is forcing a large number of banks to adopt the concept of narrow banking wherein the deposits are kept in Gilts and some other assets which improves liquidity and reduces risk The basic fact lies that banks cannot be ignored and they will not close down completely Their role as intermediaries cannot be ignored It is just that Mutual Funds are going to change the way banks do business in the futureBANKS VS MUTUAL FUNDS

BANKS MUTUAL FUNDS

Returns Low Better

Administrative exp High Low

Risk Low Moderate

Investment options Less More

Network High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not transparent Transparent

Interest calculation Minimum balance between 10th amp 30th Of every month

Everyday

Guarantee Maximum Rs1 lakh on deposits

None

Trends In Mutual Fund InvestingMarch 2006

Washington DC April 27 2006 - The combined assets of the nations mutual funds increased by $1384 billion or 15 percent to $9359 trillion in March according to the Investment Company Institutes official survey of the mutual fund industry In the survey mutual fund companies report actual assets sales and redemptions to ICI

Total Net Assets of Mutual Funds(billions of dollars)

March 06 Feb 06 chg Dec 05

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Taxable Bond Funds 10395 10432R -03 10186

Municipal Bond Funds 3450 3461 -03 3388

Taxable Money Market Funds 17024 17015R 01 17065

Tax-Free Money Market Funds 3442 3495 -15 3340

Total 93592 92208R 15 89052

R=Revised data

Highlights Long-term funds - stock bond and hybrid funds -had a net inflow of $3988 billion in March vs a net inflow of $3684 billion in February

Stock funds posted an inflow of $3404 billion in March compared with an inflow of $2735 billion in February Among stock funds world equity funds (US funds that invest primarily overseas) posted an inflow of $1848 billion in March vs an inflow of $1906 billion in February Funds that invest primarily in the US had an inflow of $1556 billion in March vs an inflow of $829 billion in February For the first three months of the year world equity funds had inflows of $6108 billion and domestic funds had inflows of $3188 billion

Hybrid funds posted an inflow of $634 million in March compared with an inflow of $760 million in February

Bond funds had an inflow of $521 billion in March compared with an inflow of $873 billion in February Taxable bond funds had an inflow of $398 billion in March vs an inflow of $587 billion in February Municipal bond funds had an inflow of $122 billion in March compared with an inflow of $286 billion in February

Money market funds had an outflow of $942 billion in March compared with an inflow of $545 billion in February Funds offered primarily to institutions had an outflow of $1013 billion Funds offered primarily to individuals had an inflow of $710 million

Net New Cash Flow of Long-Term Funds (millions of dollars)

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Net New Cash Flow 34040 27348R 92964 47552R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

Taxable Bond Mutual Funds

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

Municipal Bond Mutual Funds

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

Net New Cash Flow of Money Market Funds (millions of dollars)

March 06 Feb 06 YTD 2006 YTD 2005

-9420 5452R -8404 -49059

Liquid Assets of Stock Mutual Funds (percent of total net assets)

March 06 Feb 06 March 05

40 42 42

Annual Redemptions from Stock Funds (percent of average net assets)

191 190 191R

Redemptions over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period

Annual Redemptions and Redemption Exchanges from Stock Funds (percent of average net assets)

232 231 233

Redemptions and Redemption Exchanges over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period

Number of Mutual Funds in this Report

Stock Funds 4611 4599R 4541

Hybrid Funds 512 510 503R

Taxable Bond Funds 1277 1281 1280R

Municipal Bond Funds 737 740 762

Taxable Money Market Funds 590 591R 632R

Tax-free Money Market Funds 275 275 303

Total 8002 7996R 8021R

R=Revised data

Trends In Mutual Fund Investing March 2006

Contents Preface 2 Acknowledgement 3 Objectives of the Study 4 Executive Summary 5 1 Introduction to Mutual Fund 10 11 Mutual Fund ndash Concept 11 12 Types of Mutual Fund Schemes 12 13 Advantages ndash Disadvantages of Mutual Fund 16 14 Risk Involved in Mutual Fund 19 15 Structure of Mutual Fund 21 2 Mutual Fund Industry in India 23 21 History of Mutual Fund 24 22 Mutual Fund Players 26 3 SBI Mutual Fund 31 31 Introduction of the Organization 32 32 Company Profile 33 33 Vision amp Mission 34 34 Investment Philosophy 35 35 Details of Chairman Trustee AMC amp Sponsors 36 36 Product Profile 39 4 Marketing of Mutual Funds 42 41 Mutual Fund ndash Marketing Perspective 43 42 Distribution Channel 46 43 Trends in Marketing of Mutual Funds in India 49 44 Marketing of UTI Mutual Fund ndash Our Learning 52

Nitin Page 2 482023

Nitin Page 3 482023

Nitin Page 4 482023

BY STRUCTURE

Nitin Page 5 482023

Nitin Page 6 482023

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 3 482023

Nitin Page 4 482023

BY STRUCTURE

Nitin Page 5 482023

Nitin Page 6 482023

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 4 482023

BY STRUCTURE

Nitin Page 5 482023

Nitin Page 6 482023

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BY STRUCTURE

Nitin Page 5 482023

Nitin Page 6 482023

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 6 482023

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 7 482023

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 8 482023

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Nitin Page 9 482023

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Introduction

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Ownership Public

Ownership Pattern

Sponsor

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

5312008

Closed-end Funds 22

Address

Telephone (022) 22180221 27

Fax (022) 22189663

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Fama Model

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Corporate Vision

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

BANKS MUTUAL FUNDS

Returns Low Better

Risk Low Moderate

Everyday

None

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Stock Funds 53399 51981R 27 49400

Hybrid Funds 5881 5825R 10 5673

Total 93592 92208R 15 89052

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Stock Mutual Funds

March 2006 Feb 2006 YTD 2006 YTD 2005

New Sales 124368 102815R 351964 271192R

Redemptions -90273 -75788R -261233 -219613R

Exchanges In 19659 17181R 61617 47698R

Exchanges Out -19715 -16860 -59383 -51726R

Hybrid Mutual Funds

New Sales 9516 8238R 27369 32417R

Redemptions -8198 -7100 -24353 -20098R

Exchanges In 1388 1205 4199 4521

Exchanges Out -2072 -1582 -5936 -3647

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

New Sales 28088 25115R 81669 78106R

Redemptions -23093 -18702R -63777 -71945R

Exchanges In 3566 3091R 11136 10561R

Exchanges Out -4577 -3637 -12945 -12024R

New Sales 6349 6847 19801 14625R

Redemptions -5183 -4086 -13886 -13069R

Exchanges In 900 845 2843 2403

Exchanges Out -841 -746 -2625 -2671

Net New Cash Flow 1224 2860 6133 1288

-9420 5452R -8404 -49059

40 42 42

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

191 190 191R

232 231 233

Total 8002 7996R 8021R

R=Revised data

Date post:	13-Nov-2014
Category:	Documents
Upload:	nitin-patel
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