A Project Report On MUTUAL FUNDS: Comparison of various schemes under equity

Submitted By: Yashika Sharma

In partial fulfillment of the award of the degree of Master of Business Administration

University School of Management

Kuruksheta University Kurukhetra

CERTIFICATE
This is to certify that this project report Mutual Funds: Comparison of various schemes under equity is the bona fide work of Yashika Sharma who carried out the project under my supervision

Date:

(Signature) Anil Kumar Kapoor Manager- financial Planning Master Trust Ltd.

ACKNOWLEDGEMENT
It gives me immense pleasure to present the project report entitled MUTUAL FUNDS: Comparison of various schemes under equity Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, training is like a bridge between theoretical and practical working; willingly I prepared this particular Project. I am highly indebited to Mr. Chawla, Ms. Rinkoo Vashisht & Mr. Kapoor for their guidance and constant supervision as well as for providing necessary information regarding the project and also for their support in completing the project. I am also thankful to all the friends and family members.

Yashika Sharma

S.NO. 1. 2. 3. 4. 5. 6.

TABLE OF CONTENT PARTICULERS Executive Summary Objective Introduction of the company Master Trust LTD. Mutual funds : Basics, History, Types & pros and cons Equity funds explained Fund houses: ICICI prudential Reliance SBI Comparison of Various schemes under equity Conclusion Latest Amendments in Mutual Funds References

PAGE NUMBER

7. 8. 9. 10.

EXECUTIVE SUMMERY
The Mutual Fund is an untapped area which is bound to be the next growth story. While this area had been on a downward track since 2008, it has started showing signs of recovery. This project emphasis on, Mutual Funds: Comparison of various schemes under equity, conducted at Master Trust Ltd. In this project I have analyzed the Mutual Funds Schemes, particularly the Equity Diversified open ended (growth) schemes and compared schemes of various fund houses, namely ICICI PRUDENTIAL, SBI and RELIANCE to evaluated in which scheme to invest & from which to switch and current performance and position of these schemes as well. Taking into consideration the various mutual fund schemes under equity I have chosen: Future Outlook Quaterly, Half Yearly and Yearly performance Top holdings and weightage to them Top sectors and weightage to them Latest NAV and Management Entry & Exit loads

As the various tools for evaluation.

OBJECTIVES OF THE STUDY

Primary Objective: Comparison of similar schemes of different fund houses, their evaluation and which scheme is best to invest and from where the money should be taken out. Study of various fund houses, their management and the future outlook. Secondary Objective: Study of the basic Mutual Fund Industry Fundamental Analysis

MASTER TRUST LTD

OVERVIEW Master Trust Group is one of the leading financial services company in India. We have a strong belief in nurturing investment culture, attitude and inculcating a very strong approach towards value investing forms the central part of any sound investment philosophy. With an impeccable track record in client servicing of over two decades, we have now grown to 650+ strong employee organizations with over 1, 50,000+ client relationships. At Master Trust, our endeavor is to constantly meet every financial need of our esteemed clients. mastertrust - is a one point shop for all the investment needs of a customer. The one-stop destination is specifically targeted towards the retail customers who require a very strong relationship driven approach towards value investing. The philosophy of mastertrust has its genesis from Master Trust groups belief in nurturing the investment culture towards value investing. MISSION To always earn the right to be our clients first choice through personal & social wealth maximization VISION To be well diversified financial shop for wealth creation and being an ideal service provider in our domain of business CORPORATE PHILOSOPHY Becoming an expert at anything takes a strong will, unyielding determination and pure ability VALUE SYSTEM

GROUP MILESTONE
YEAR 1985 1986 MILESTONE The seeds of the group were swon as arora financial consultants(P)Ltd. (later converted into master trust ltd.) Acquired membership of Ludhiana stock exchange under the name of M/S H Arora and co (later converted intoa corporate membership as master share and stock brokers ltd.) Became members of DSE (Delhi Stock Exchange) under the name of M/s harjeet arora and co. (later converted into a corporate membership as MTL share and stock brokers ltd.) Acquired the status of SEBI accredited category| Merchant Bankers Became dealers of OTCEI (Over The Counter Exchange Of India) Master Capital Services Ltd. Became corporate members of NSE (National Stock Exchange of India Ltd.) Master Trust Ltd. Came out with an IPO (Initial Public Offer) of equity share & fully convertible debentures Upgraded dealership of OTCEI to membership Became RBI approved Fully Fledge Money Changers Launched depository services as a Depository Participant of NSDL Launched depository services as a Depository Participant of CSDL Commenced trading in Derivatives Segments in NSE Entered into insurance business as corporate agents for Life and General Insurance Became member of NCDEX (National Commodity Derivatives Exchange Ltd.) and MCX (Multi Commodity Exchange of India Ltd.) Introduced Virtual Private Network (VPN) Became insurance broker under name of M/s Master Insurance Brokers. Acquired the membership of BSE (Bombay Stock Exchange Ltd.) Commenced internet trading and margin funding against shares Set up regional offices in Baroda, Kolkata and Hyderabad Introduced Currency Derivatives Trading Through MCX-SX & NSE Established an arbitrage desk implemented Master Swift Established CRM Trading turnover peaks US$ 1 billion/day of group companies Became Member of NSEL and ACE Arbitrage desk activated spot commodity rebranding exercise of retail services

1987

1993 1994 1995

1997 1999 2001 2002 2004

2006 2007 2008 2009 2010

BOARD OF DIRECTORS
Mr. Harjeet Singh Arora (F.C.A., F.C.S.), is the Managing Director of the Company and has more than 25 years of experience in corporate, financial and merchant banking matters. He is one of the promoters of the company and has been involved in the secondary and primary markets right from the incorporation of the company. Mr. R.K.Singhania (F.C.A.) is well known personality in the corporate circles. He is the Director of the Company and was formerly the Director (Finance) with Indias premier Oswal group for more than 10 years. He is one of the promoters and has rich experience in the corporate M&A space with deals worth Rs. 50 billion executed in FY 2005-06 alone. He is having more than 25 years experience in corporate strategy, tax planning & financial engineering internationally. Mr. Pawan Chhabra (F.C.A.) is having a rich experience of more than 20 years in primary and secondary share market and merchant banking activities. His primary responsibility includes liasioning with SEBI, RBI, NSE, BSE, MCX, NCDEX and FI/ FII business development.

Mr. G.S. Chawla (B.E., M.B.A., D.B.F.) has worked with a public financial Institution for more than 12 years. He has 15 years rich experience of capital market, finance and other related activities. His primary responsibility involves development of PMS business, advisory & research, merchant banking, insurance broking and technology initiatives. Mr. Harinder Singh (B.Com, I.C.W.A.inter) has been monitoring the secondary market operations of the company for the last 12 years. He looks after compliances, secondary & commodity market, margin funding, mutual fund distribution, IPOs, arbitrage and business development.

Mr. Sanjay Sood (F.C.A.) is having more than 15 years of experience in Merchant Banking, Foreign Exchange Management, Financial and Retail Services. He is responsible for looking after the FX business and the depository business.

MUTUAL FUNDS
BASICS OF MUTUAL FUNDS Before explaining what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. STOCKS Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. BONDS Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds. MUTUAL FUNDS 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 realised 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:

Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. DIVERIFICATION Diversification is nothing but spreading out your money across available or different types of investments. By choosing to diversify respective investment holdings reduces risk tremendously up to certain extent. The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, emerging or mid size companies, low-grade corporate bonds, etc). HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY: 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 of India. The history of mutual funds in India can be broadly divided into four distinct phases. First Phase 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 Rs.6,700 crores of assets under management. Second Phase 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 Canbank 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 Rs.47,004 crores.

Third Phase 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. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds. Fourth Phase 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 Rs.29,835 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, 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 Rs.76,000 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.

The graph indicates the growth of assets over the years:

TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below Overview of existing schemes existed in mutual fund category: BY STRUCTURE 1. Open - Ended Schemes: An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. 2. Close - Ended Schemes: These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Investors can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchanges could vary from the net asset value (NAV) of the scheme on account of demand and supply situation, expectations of unitholder and other market factors. Alternatively some closeended schemes provide an additional option of selling the units directly to the Mutual Fund through periodic repurchase at the schemes NAV; however one cannot buy units and can only sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit routes is provided to the investor. 3. Interval Schemes: Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vice versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investors opt for bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases in the same proportion. Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity. That doesnt mean mutual fund investments risk free. This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives market which is considered very volatile Overview of existing schemes existed in mutual fund category: BY NATURE 1. Equity fund: These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund managers outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:

Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the riskreturn matrix. 2. Debt funds: The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as: Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government. Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities. MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes. Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures. Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.

3. Balanced funds: As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the

scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns. Overview of existing schemes existed in mutual fund category: BY INVESTMENT OBJECTIVES Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents (normally 50:50). Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Other schemes: Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate. Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index. Sector Specific Schemes: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time.

TYPES OF RETURNS There are three ways, where the total returns provided by mutual funds can be enjoyed by investors: Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. PROS AND CONS OF MUTUAL FUNDS For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund. Advantages of Investing Mutual Funds: 1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively less expensive way to make and monitor their investments. 2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. 3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors. 4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when they want. 5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds: 1. Professional Management- Some funds dont perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so-called professionals are any better than mutual fund or investor himself, for picking up stocks. 2. Costs The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon. 3. Dilution - Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. 4. Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability. REGULATORY AUTHORITIES To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc.

EQUITY FUNDS EXPLAINED

Most mutual funds invest in stocks, and these are called equity funds. While mutual funds most often invest in the stock market, fund managers don't just buy any old stock they find attractive. Some funds specialize in investing in large-cap stocks, others in small-cap stocks, and still others invest in what's left -- mid-cap stocks. "Cap" has nothing to do with its dictionary meanings. On Wall Street, cap is shorthand for capitalization, and is one way of measuring the size of a company -- how well it's capitalized. Large-cap stocks have market caps of billions of dollars, and are the best-known companies in the U.S. Small-cap stocks are worth several hundred million dollars, and are newer, up-andcoming firms. Mid-caps are somewhere in between. Mutual funds are often categorized by the market capitalization of the stocks that they hold in their portfolios. But how big is a large cap stock? Formulas differ, but here is one guideline:

Small-cap stocks < $500 million Mid-cap stocks $500 million to $5 billion Large-cap stocks > $5 billion

Equity fund managers usually employ one of three particular styles of stockpicking when they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other, similar companies. Often, the share prices of these stocks have been beaten down by the market as investors have become pessimistic about the potential of these companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole. These funds buy shares in companies that are growing rapidly -- often well known, established corporations. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. This is known as the blend approach

FUND HOUSES
A fund house is a company/firm that owns and operates a mutual fund. They own the fund and decide on the investment strategies to be followed with the money that was collected from the investor public for the fund. Various fund houses taken as samples for the comparison of schemes are: 1. ICICI PRUDENTIAL ASSEST MANAGEMENT COMPANY 2. RELIENCE MUTUAL FUND 3. SBI MUTUAL FUND The sample of ten comparisons of schemes falling under equity category has been selected for analysis, these comparisons are: C.1 ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND vs. RELIENCE EQUITY FUND vs. SBI BLUECHIP FUND C.2 ICICI PRUDENTIAL TAX PLAN vs. RELIENCE TAX SAVER (ELSS) FUND vs. SBI MAGNUM TAXGAIN SCHEME C.3 ICICI PRUDENTIAL INFRATRUCTURE FUND vs. RELIENCE INFRASTRUCTURE FUND vs. SBI INFRASTRUCTURE FUND SERIES I C.4 RELIENCE NRI EQUITY FUND vs. SBI MAGNUM NRI INVESTMENT FUND C.5 ICICI PRUDENTIAL BANKING & FINANCIAL SERVICE SECTOR ORIENTED FUND vs. RELIENCE BANKING FUND C.6 ICICI PRUDENTIAL TECHNOLOGY FUND vs. SBI MSFU- IT FUND C.7 ICICI PRUDENTIAL FMCG FUND vs. SBI MSFU- FMCG FUND C.8 RELIENCE INDEX FUND NIFTY PLAN vs. SBI MAGNUM INDEX FUND C.9 RELIENCE PHARMA FUND vs. SBI MSFU- PHARMA FUND C.10 RELIENCE ARBITRAGE ADVANTAGE vs. SBI ARBITRAGE OPPORTUNITY FUND Further in the project, first the introduction of fund houses and then the comparisons of various schemes (stated above) are explained.

ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY

ICICI Prudential Asset Management Company Ltd. (IPAMC/ the Company) is the joint venture between ICICI Bank, a well-known and trusted name in financial services in India and Prudential Plc, one of UKs largest players in the financial services sectors. IPAMC was incorporated in the year 1993. The Company in a span of over 18 years since inception and just over 13 years of the Joint Venture, has forged a position of preeminence in the Indian Mutual Fund industry as the third largest asset management company in the country, contributing significantly to the growth of the Indian mutual fund industry.The Company manages significant Mutual Fund Asset Under Management (AUM), in addition to Portfolio Management Services and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6 employees during inception to the current strength of over 700 employees with reach across around 150 locations, the growth momentum of the Company has been exponential. The organization today is an ideal mix of investment expertise, resource bandwidth & process orientation. IPAMCs Endeavour is to bridge the gap between savings & investments to help create long term wealth and value for investors through innovation, consistency and sustained risk adjusted performance. ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,538 branches and about 6,810 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Center and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. They serve approximately, 25 million customers and have 290 billion in assets under management. They are among the leading capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009). The Group is structured around four main business units: Prudential Corporation Asia (PCA) PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and Vietnam. PCA provides a comprehensive range of savings, protection and investment products that are specifically designed to meet the needs of customers in each of its local markets. PCAs asset management business in Asia has retail operations in 10 markets and it independently manages assets on behalf of a wide range of retail and institutional investors across the region. Jackson National Life Insurance Company Jackson is one of the largest life insurance companies in the US, providing retirement savings and income solutions to more than 2.8 million customers. It is also one of the top five providers of variable and fixed index annuities in the US. Founded nearly 50 years ago, Jackson has a long and successful record of providing effective retirement solutions for their clients. Prudential UK & Europe (PUE) PUE is a leading life and pensions provider to approximately 7 million customers in the UK.It has a number of major competitive advantages including significant longevity experience, multi

asset investment capabilities, a strong investment track record, a highly respected brand and financial strength. PUE continues to focus on its core strengths including its annuities, pensions and investment products where it can maximize the advantage it has in offering with-profits and other multi-asset investment funds. M&G M&G is Prudentials UK and European fund management business with total assets under management of 174 billion (as at December 31, 2009).M&G has been investing money for individual and institutional clients for nearly 80 years. Today it is among the largest investors in the UK stock market, as well as being a powerhouse in fixed-income investments. Prudential plc of the United Kingdom is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. MANAGEMENT Mr.Nimesh Shah- Managing Director & Chief Executive Officer: Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July 2007.Nimesh has completed his Chartered Accountancy. Prior to joining ICICI Prudential AMC, Nimesh was Senior General Manager at ICICI Bank and has over 18 years experience in banking and financial services. At ICICI Group, he has handled many responsibilities including project finance, corporate banking and international banking. He was associated with one of the first batches of senior managers selected to lead the foray of ICICI Bank into the international arena. He led ICICI Banks foray into the Middle-Eastern region and Africa. Mr. B Ramakrishna - Executive Vice President: Ramakrishna joined ICICI Prudential AMC in September 2004.Ramakrishna is a Chartered Accountant and has also done his Cost Accountancy. He has around 23 years of rich experience across industries like FMCG and banking & financial services. At ICICI Prudential AMC , Ramakrishna is the custodian of the finance , compliance and technology functions . He plays an integral role in driving the key profitability agenda through financial & corporate planning, budgetary control and corporate finance. Mr. Raghav Iyengar - Head - Retail & Institutional Business: Raghav joined ICICI Prudential AMC in December 2006. Raghav is a Chartered Accountant and also has a degree in Cost Accountancy. He has an overall work experience of around 16 years across the Banking & Financial Service Industry. He was also associated with ICICI Prudential AMC from 1998 to 2000.At ICICI Prudential AMC, Raghav is responsible for driving the business objectives through Retail sales and distribution, channel sales and institutional / corporate investors. His role is of a key driver in strengthening distribution relationships and facilitating asset growth. He is also responsible for identifying potential areas of expansion and facilitating business growth. Raghav loves traveling and visiting new places. He loves reading books and enjoys playing tennis with his son.

Mr. Kalyan Prasath - Head - Information Technology: Kalyan joined ICICI Prudential AMC in June 2001. Kalyan holds a Diploma in Business Management from ICFAI and Post Graduate Diploma in Systems Management from NIIT. He has 23 years of experience across industries like IT, manufacturing and banking & financial services. At ICICI Prudential AMC, his responsibilities include overseeing the overall technology function i.e. business application, information security and IT infrastructure & projects thereby contributing to business excellence. Mr. Hemant Agarwal - Head Operations: Hemant joined ICICI Prudential AMC in February 2007.Hemant has done his Chartered Accountancy. He has an overall work experience of around 14 years across industries like information technology and banking & financial services.In his role at ICICI Prudential AMC his responsibilities are building the operation and customer service framework. The objective of this function is to evolve a service model that is scalable and ensures process excellence. Mr. Ashish Kakkar - Head - Human Resources & Administration: Ashish joined ICICI Prudential AMC in June 2003. Ashish is a post graduate in human resources with Masters in Labor Law. He has over 12 years of experience in human resources across industries like pharmaceuticals, FMCG and the financial services. Ashish started his career with the Indian Navy, after graduating from the Naval Academy with top honors. At ICICI Prudential AMC, he heads the human resources and administration function. The key aspects of his function are to build peoples capabilities to meet business objectives, and to leverage technology to ensure administrative processes are efficient. Mr. Aashish Somaiyaa - Head Retail Business: Aashish began his career at ICICI Prudential AMC in 2000 and was a part of the organization till April 2007. After a brief stint away, he rejoined ICICI Prudential AMC in October 2008. A Chemical Engineer, he holds a Masters in Management Studies with specialization in Finance from NMIMS Mumbai. He has overall work experience of over 10 years across the Banking & Financial Services Industry. He is also a certified trainer.In his role at ICICI Prudential AMC, Aashish is responsible for driving the business objectives in retail business through a mix of distribution channels that are deployed to reach out to investors. The retail sales and distribution team is an integrated unit of business delivery (sales and service), primarily addressing distributors and through them individual investors needs. Additionally, Aashish is also responsible for the Product Development and Communication function which studies investors requirements and provides the market with right kind of investment products and service features. Mr. Rahul Rai - Head Real Estate Business ICICI Prudential Asset Management Company Limited: Rahul joined ICICI Prudential AMC in Nov 2010. At ICICI Prudential AMC, Rahul is responsible for anchoring the Real Estate Business and driving team synergies. Rahul has an overall work experience of around 20 years. His expertise and core competency has been in the in depth understanding of the real estate segment and evaluating and investing in real estate projects. He has also managed one of the largest and first FDI transactions that happened in the Indian real estate space in 2004. Rahul, is a Chartered Accountant, and has also completed the Cost Accountancy and Intermediate level Company Secretary Course. Prior to ICICI Prudential AMC, he has been associated with companies like Arthur Anderson Corporate Finance, Ernst and Young Transaction Advisory Services, RSM Advisors Private Limited and till recently was associated with Sun Apollo Real Estate Advisors.

FUND MANAGEMENT Mr. S. Naren - Chief Investment Officer Equity: Naren joined ICICI Prudential AMC in October 2004. At ICICI Prudential AMC, Naren oversees the equity investments across the Mutual Fund,Portfolio Management Services (PMS) and International Advisory Business . He is instrumental in overall equity investment strategy development. Naren has an overall outstanding and rich experience of over 20 years in almost all spectrum of the financial services industry ranging from investment banking, Fund Management, Equity Research, and stock broking operations. His core competency lies in being involved in the entire gamut of equity market space with extensive knowledge of Indian equities and the economy .After obtaining a B. Tech degree from IIT Chennai, Naren finished MBA in finance from IIM Kolkota and worked with various financial services companies like Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd. and Yoha Securities in various positions prior to joining ICICI Prudential AMC. Mr. Chaitanya Pande - Head Fixed Income: Chaitanya joined ICICI Prudential AMC in September 2002. Chaitanya currently manages thirteen funds viz. ICICI Prudential Flexible Income Plan, ICICI Prudential Equity & Derivatives Fund, ICICI Prudential Blended Plan A, ICICI Prudential Blended Plan B, ICICI Prudential Fixed Maturity Plans, ICICI Prudential Interval Fund, ICICI Prudential Liquid Plan, ICICI Prudential Floating Rate Plan, ICICI Prudential Long Term Floating Rate Plan, ICICI Prudential Short Term Plan, ICICI Prudential Sweep Plan, ICICI Prudential Real Estate Securities Fund and ICICI Prudential S.M.A.R.T. (Structure Methodology Aiming at Returns over Tenure) Fund. Chaitanya has an overall work experience of around over 14 years. His core competency lies in credit analysis and efficient portfolio management. His efficiency in fund management also won him the title of Indias Most Astute Bond Investor by Asset Magazine for the year 2007. Chaitanya holds a MBA from IMI Delhi. Prior to joining ICICI Prudential AMC he was with Jardine Fleming AMC Pvt Ltd. BOARD OF DIRECTORS: ASSET MANAGEMENT COMPANY Mrs. Chanda Kochhar, MD & CEO ICICI Bank: Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of ICICIBank Limited. She began her career with ICICI as a Management Trainee in 1984 and has thereon successfully risen through the ranks by handling multidimensional assignments and heading all the major functions in the Bank at various points in time. In 1993 when ICICI decided to enter commercial banking, she was deputed to ICICI Bank as a part of the core team to set up the bank. When ICICI set up the Infrastructure Industry Group in 1996 to create dedicated industry expertise in the areas of Power, Telecom and Transportation sector, she was handpicked and made incharge of the Infrastructure Industry Group. Further in 1998, when ICICI created the Major Client Group to handle the relationships with the top 200 clients of ICICI, she was promoted as General Manager and was made the head of the Major Clients Group. In the year 1999 she simultaneously started handling the strategy and E-commerce divisions of ICICI. In July 2000, she was chosen to head the Retail finance division of ICICI and has been

instrumental in scaling up the business. In April 2001, she was promoted as an Executive Director, heading the retail business in the Bank. Having joined it during its nascent stage, her strategic thinking and skills to convert challenges into opportunities ensured that within a short span of around 5 years ICICI Bank emerged as the largest retail financer in India. In the process of transforming a small bank into the largest private sector bank in the country, within a decade of its inception, the various steps taken by her also shaped the retail finance industry in India. In April 2006, she was appointed as the Deputy Managing Director with responsibility for both Corporate and Retail banking business of ICICI Bank and from October 2006 to October 2007, she handled the International and Corporate businesses of ICICI. Once again under her leadership, International banking was the fastest growing businesses within the Bank aiming to cater to the cross-border needs of clients. In October 2007, she was appointed as the Joint Managing Director & CFO. She was heading the Corporate Centre, was the Chief Financial Officer (CFO) and was also the official spokesperson for ICICI Bank. In addition to finance, planning and communications; her responsibilities included the global treasury, principal investments & trading, risk management and legal functions. She was also responsible for day-to-day guidance and administrative matters relating to the compliance and internal audit functions. Awards Under the leadership of Ms. Kochhar ICICI Bank had won The Asian Banker - Best Retail Bank in Indiaaward for five consecutive years from the year 2001 to 2005. As recognition of her contribution to establish ICICI Bank as a leading player in the banking industry Ms. Kochhar has also been:

Ranked 25th in the Fortunes List of Most Powerful Women in Business, 2008 Featured in the list of 25 most powerful women leaders in Business Today, 2008 Selected as Rising Star Award for Global Awards 2006 by Retail Banker International Awarded Business Woman of the Year 2005 by The Economic Times of India Selected as Retail Banker of the Year 2004 (Asia-Pacific region) by The Asian Banker from amongst prominent retail bankers in the Asia Pacific region

Education & Certifications Born in Jodhpur, Rajasthan, she joined Jaihind College in Mumbai for a Bachelors Degree in Arts and after graduating in 1982, completed her MBA and Cost Accountancy. She did her Masters in Management Studies (Finance) from the Jamnalal Bajaj Institute of Management Studies, Mumbai and topped her batch and received the Wockhardt Gold Medal for Excellence

in Management Studies. In Cost Accountancy, she received the J. N. Bose Gold Medal for highest marks in that year. Mr. Barry Stowe: Barry Stowe is Chief Executive of Prudential Corporation Asia. He is responsible for an extensive network of over 50 life insurance and fund management operations spanning 13 diverse markets. With 450,000 dedicated staff and agents, Prudentials Asia business offers a wide range of savings, protection and investment products tailored to meet the needs of local customers, in addition to consumer finance sector in Vietnam. Prudential is Asias leading Europe-based life insurer, with over 34.3 billion in assets under management (as of 30 June 2008), and is also a major player in Asias fund management sector. Prior to joining Prudential in October 2006, Barry was President of Accident & Health Worldwide for AIG Life Companies, overseeing more than 100 operations across six continents. Under his leadership, AIG became the global market leader in Accident & Health insurance, leveraging rapidly-evolving dynamics between consumers, governments and the medical industry to maintain a vigorous CAGR of 24%. Barry was also pivotal in building the Accident & Health unit into one of AIGs most profitable businesses, accounting for over 30% of AIG Life Companies total earnings by 2005. Barry has considerable experience in Asia, having spent three years as the Regional Head for AIG Accident & Health in Southeast Asia before his appointment to the Hong Kong-based role of President, Accident & Health Worldwide. In addition to his eleven years with AIG, Barrys career in the insurance industry includes his tenure as President & CEO of Nisus, a subsidiary of the Pan American Life Insurance Company, and several leadership positions at Willis Corroon, a global risk management and insurance brokerage based in the U.S. Mr. Suresh Kumar: Academic Career: Mr. Suresh Kumar graduated from the Sydenham College of Commerce & Economics of the University of Bombay with a Bachelor of Commerce (Honours) degree in 1971. He completed a post-graduate investment management programme conducted jointly by the Stanford University and the London School of Business. He also completed an Advanced Management Programme at the Columbia Business School. Achievements/Eminent Positions held:

Senior treasury and general management positions in a Government of Dubai project. Management positions in the banking sector in India, in the U. K. and in the (West Coast) U.S. Member of the senior Management of Emirates Bank Group since 1989. Member on the Board of a number of offshore private equity firms.

More recently, he has assumed the role of a Chief Mentor and Group Director in Emirates NBD; with responsibilities for a number of organic and inorganic initiatives. Recipient of the Rotary International Scholarship (1977) tenable in California (U.S.A.) Recipient of Lord Aldington Banking Fellowship (1978) Fellow of the Indian Institute of Bankers Member of the regional Chief Executive Forum of the Institute of International Finance (IIF), Washington D.C.

Directorships in other Companies:

Independent Director on the Board of ICICI International Ltd Chairman of the Board of Fedbank Financial Services Ltd. Non-executive director on the Board of Federal Bank Ltd. Chief Executive Officer of Emirates NBD Capital Ltd (DIFC) and Emirates Financial Services (EFS) PSC.

Mr. Vijay Thacker: Mr. Thacker is the Managing Partner of V. P. Thacker & Co. Mr. Vijay Thacker is a Chartered Accountant and Cost Accountant and has been in professional practice for over 22 years. He is a Fellow of the Institute of Chartered Accountants of India. Mr. Thackers professional skills and experience cover diverse facets including Audit and assurance, Business consulting, Corporate Law and taxation, Hotel and tourism consulting, Franchise consulting and Consulting for Family and Owner managed businesses. He is also a speaker and paper writer at international and domestic conferences. Mr. Dileep C. Choksi: Mr. Dileep C. Choksi a Chartered Accountant by profession has over 35 years of experience. His areas of specialization include tax planning and structuring for domestic and international clients, including expatriates, finalizing collaborations and joint ventures, corporate restructuring and analyzing tax impact of various instruments. He has advised some of Indias largest business houses on mergers and acquisitions and multinational companies on cross border structuring and acquisition. Mr. Choksi has contributed various papers on mergers and acquisitions, valuation of business enterprises, company law, corporate governance and taxation. He has assisted in the preparation of the prominent book Kanga and Palkhiwala - The Law and Practice of income Tax Eight Edition by late Mr. N. A. Palkhiwala and Mr. B.A. Palkhivala.

He has been an ex-visiting faculty member of the Jamnalal Bajaj Institute of Management Studies, Bankers Training College, and Reserve Bank of India. He was earlier on the Taxation Committee of the Indian Merchant Chambers. Mr. Choksi is on the Board of several leading companies including ICICI Lombard General Insurance Company Limited, ICICI Prudential Asset Management Company Limited, NSE.IT Limited, and State Bank of India. He was also on the Advisory Board of foreign banks as well as Ex-Chairman of Banque Nationale De Paris, Mumbai. Mr. N.S. Kannan: Mr. N.S. Kannan is the Executive Director and Chief Financial Officer of ICICI Bank. In addition to Finance, Taxation and Communications, his responsibilities include Compliance, Internal Audit, Corporate Legal and Global Treasury operations. Prior to the current assignment, Mr. Kannan was the Executive Director of ICICI Prudential Life Insurance Company. He looked after the Corporate Centre including the Finance and accounts functions, Investor/analyst relations, Investment Management, Corporate Strategy, Corporate Communications, Human Resources and Business Intelligence. Prior to shifting to ICICI Prudential, Mr. Kannan was the Chief Financial Officer and Treasurer of ICICI Bank. Mr. Kannan has been with the ICICI group for over 18 years. He joined the ICICI group in 1991 as a project officer. During his tenure at ICICI group, he has handled project finance operations, infrastructure financing, structured finance and treasury operations. Mr. Kannan is a postgraduate in management from the Indian Institute of Management, Bangalore with a gold medal for best all-round performance. He is also a Chartered Financial Analyst from the Institute of Chartered Financial Analysts of India and an Honours graduate in Mechanical Engineering. Mr. C. R. Muralidharan: Mr. C. R. Muralidharan was a Whole-Time Member of Insurance Regulatory and Development Authority, Hyderabad (IRDA) and was looking after the compliance by the insurers of the regulations on investments, analysis of financial statements of insurance companies, on and off-site supervision of insurance companies as well as other regulatory issues including the registration of new insurance companies. Prior to joining IRDA, he worked in RBI for more than three decades in various capacities. He was heading the Department of Banking Operations and Development (DBOD) of RBI, which is responsible for laying down a regulatory framework on a wide range of operations for Indian commercial banks to promote a sound and competitive banking system consistent with the emerging international best practices. He assisted IMF in two overseas assignments and was associated with several High Level Working Groups on Banking Regulation. Besides, he was also actively involved in the role of promotion of rural credit as well as in the development of HR for the central bank. Mr. Nimesh Shah: Profile explained earlier in the report.

FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES (for the year

ended march 31, 2012) Investment Folios: The total number of live folios as at March 31, 2012 were 28.38 lakh. Market Review FY12: Stock markets across the globe fell in 2011, and the domestic indices were no exception. As investors appeared to be putting behind the memories of the 2008 financial crisis with an upturn, 2011 showed what volatility can do to ones portfolio. A series of global and domestic events together rocked the investor confidence and markets over FY12.The year was ruled by a number of global factors ranging from the Euro-zone debt crisis and major sovereign downgrades to signs of economic slowdown in the U.S. and China. A worsening Euro crisis led to a flight to safety as investors bought gold. Brent crude prices remained high on account of supply concerns owing to geo-political tensions in Middle East oil producing countries which added to the increased volatility in equity markets. As the year progressed, strong household consumption and relatively healthier US banks led to a smart recovery in US equities. During the financial year, global turmoil and disappointing domestic economic data did not bode well for the Indian markets. Weak industrial output, slowing economic growth, and higher inflation were the key concerns for the year. The ongoing global economic turmoil coupled with rising interest rates back home impacted domestic economic growth. The GDP data released indicated a continuous slowdown in the overall economic growth for the year. Exports slowed down as demand weakened from European and US markets, owing to the uncertainty prevailing in both the markets. As imports grew faster, the trade deficit widened. The rupee declined against the US dollar owing to weak local equities, weakness in the euro and dollar demand from banks and importers. The headline inflation surged over 9% raising concerns, even as the central banks efforts to curb rising prices did not achieve the expected efficacy. The Reserve Bank of India (RBI) hiked rates seven times in calendar 2011, with key rates rising by 225 bps in total. In January and March 2012 policy announcements, RBI cut Cash Reserve Ratio (CRR) by 75 and 50 bps respectively, to ease liquidity which had become structurally very high and took a pause with respect to repo rates indicating a change in its stance. Besides, the 2G spectrum-sale issue, widespread perception of lack of progress in economic reforms, corporate governance concerns, and disappointing corporate earnings did not help equities either. During the year, rising inflation, continual hikes in interests rates (in calendar 2011), liquidity crunch and huge government borrowing had a negative impact on government bond prices. The economic slowdown, however, raised hopes of a pause in rate-hikes by the RBI towards the end of the financial year, which in turn pushed up bond prices. The surge in yields was steeper at the shorter-end of the yield curve, primarily on account of the liquidity crunch that the markets witnessed from time to time during the year, thereby putting pressure on shorter duration bonds.

Operations of the Schemes 1. Average Assets under Management (AAUM) The AAUM of the Mutual Fund for the quarter ended March 31, 2012 stood at Rs. 68,816.49 crore, while for the quarter ended March 31, 2011; the AAUM of the Mutual Fund was Rs. 73,551.95 crore. As of March 31, 2012, the Fund comprised 43 open-ended schemes, 2 exchange traded funds, 17 interval fund plans, 2 fund of funds schemes (of which one has five sub-plans) and 93 plans under close ended schemes. During the year under review the Fund launched one fund of funds scheme; one open ended debt scheme, and 71 plans under close ended debt schemes. 2. Operations and Consumer Service With a view to rendering timely and efficient customer service, the Investment Manager of the Fund, viz., ICICI Prudential Asset Management Company Ltd. (the AMC) has been effectively leveraging on its 126 branches, including 36 functioning as official points of acceptance of transactions, effectively servicing the large client base. Additionally a dedicated contact center has been effective in providing investor support and redressing their grievances. The AMCs focus has been on technological innovation for facilitating investors convenience. Scheme-wise commentary* ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Focused Bluechip Equity Fund is an open-ended equity scheme that seeks to generate long-term capital appreciation to unitholders from a portfolio that is invested predominantly in equity and equity-related 5 securities of about 25-30 large-cap companies and the balance in debt securities, money market instruments, and cash. The scheme posted a return of -3.66% in FY12, better than the -9.23% posted by the benchmark S&P CNX Nifty Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 3,805.27 crore. ICICI Prudential Tax Plan ICICI Prudential Tax Plan is an open-ended Equity Linked Savings Scheme (ELSS). The scheme posted a return of -3.61% in FY12, better than the -8.75% posted by the benchmark S&P CNX 500. The AAUM of the scheme during the last quarter of FY12 was Rs. 1,278.42 crore. ICICI Prudential Infrastructure Fund ICICI Prudential Infrastructure Fund is a thematic fund encompassing infrastructure. It is an open-ended equity scheme that seeks to generate capital appreciation and income distribution to unit holders by investing predominantly in equity or equity-related securities of the companies

belonging to the infrastructure development and balance in debt securities and money market instruments. The scheme posted a return of -15.39% in FY12, better than the -18.45% posted by the benchmark CNX Infrastructure Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 2,153.67 crore. ICICI Prudential Banking & Financial Services Fund ICICI Prudential Banking & Financial Services Fund is an open-ended sectoral scheme that seeks to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. The scheme posted a return of -10.54% in FY12, better than the -11.64% posted by the benchmark BSE Bankex. The AAUM of the scheme during the last quarter of FY12 was Rs. 140.76 crore. ICICI Prudential Technology Fund ICICI Prudential Technology Fund is an open-ended Technology sector oriented fund. The scheme posted a return of -2.52% in FY12, better than the -7.12% posted by the benchmark BSE IT Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 104.56 crore. ICICI Prudential FMCG Fund ICICI Prudential FMCG Fund is an open-ended FMCG sector oriented fund. The scheme posted a return of 30.98% in FY12, better than the 24.35% posted by the benchmark S&P CNX FMCG Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 130.06 crore.
*only project sample schemes are discussed here

RELIANCE MUTUAL FUND

Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of Indias leading Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 80,694 Crores and an investor count of over 63.17 and 69.37 Lakh folios. (AAUM and investor count as of Apr - June '12) Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual funds in India. RMF offers investors a well well-rounded rounded portfolio of products to meet varying investor requirements and has presence in 179 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Capital Asset Management Limited (RCAM) is the asset manager of Reliance Mutual Fund. RCAM a subsidiary of Reliance Capital Limited, which holds 92.93% of the paid-up up capital of RCAM, the balance paid up capital being held by minor minority ity shareholders. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial fina services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investme investments, nts, stock broking and other financial services. Sponsor Trustee : Reliance Capital Limited : Reliance Capital Trustee Co. Limited

Investment Manager / : Reliance Capital Asset Management Limited AMC Statutory Details : The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

VISION AND MISSION STATEMENTS VISION STATEMENT To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance. MISSION STATEMENT To create and nurture a world-class, high performance environment aimed at delighting our customers. CORPORATE GOVERNANCE Corporate Governance Policy: Reliance Capital Asset Management Limited has a vision of being a leading player in the mutual fund business and has achieved significant success and visibility in the market. However, an imperative part of growth and visibility is adherence to good conduct in the marketplace. At Reliance Capital Asset Management Limited, the implementation and observance of ethical processes and policies has helped us in standing up to the scrutiny of our domestic and international investors. Management: The management at Reliance Capital Asset Management Limited is committed to good corporate governance, which includes transparency and timely dissemination of information to its investors and unit holders. The Board of Directors of RCAM is a professional body constituting inter-alia of, well-experienced and knowledgeable independent members. Regular audit committee meetings are conducted to review the operations and performance of the company. Employees: Reliance Capital Asset Management Limited has at present, a code of conduct for all its officers. It has a clearly defined prohibition on insider trading policy and regulations. The management believes in the principles of propriety and utmost care is taken while handling public money, making proper and adequate disclosures. All personnel at RCAM are made aware of their rights, obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a well-designed HR program, conducted to impart work ethics, the Code of Conduct, information security, Internet and e-mail usage and a host of other issues. One of the core objectives of RCAM is to identify issues considered sensitive by global corporate standards, and implement policies/guidelines in conformity with the best practices as an ongoing process. RCAM gives top priority to compliance in true letter and spirit, fully understanding its fiduciary responsibilities.

MANAGEMENT TEAM Sundeep Sikka: is CEO of RCAM. He has been instrumental in expanding RCAM's footprints in both domestic & international territories. Sundeep has been with RCAM since November 2003 and has more than 13 years of leadership experience with NBFCs and Banks. Sundeep brings a proven track record of success and a broad understanding of the company's business. Prior to RCAM, Sundeep has held a number of other senior management positions and his last stint was with ICICI Bank. Himanshu Vyapak: Is Deputy CEO with Reliance Capital Asset Management (RCAM) from Oct 2003 onwards and brings in over 14 years of rich experience in sales & distribution of financial services. He has been instrumental in expanding RCAMs footprints in both domestic & international territories. Apart from Reliance Mutual Fund, He was also involved with key businesses across Reliance Capital group like Credit Cards & Unsecured Loans. Prior to Reliance Capital he was with ICICI bank and Escorts Finance across liability and asset verticals. Himanshu is a Fellow of Insurance from Indian Institute of Insurance, a Certified Financial Planner, a gold medalist in MBA and a Graduate in Economics (Hons) from Delhi University. Under his leadership, RCAM has earned accolades from Customers, Partners and Independent professional research entities representing domestic and international geographies. Some of the recent recognition include:

Best Sales Team - Stevie Award 2008 National Sales Team of the year - Stevie Award 2009 Best National Sales Head of the Year - Wealth Forum Award 2010 Best Distributor Training Team from Wealth Forum Platinum Circle 2010 Top 3 in Customer Service from Wealth Forum Platinum Circle 2010

Sunil B. Singhania: is Head of Equity Investments at Reliance Mutual Fund. Sunil graduated in commerce from the Bombay University and completed his Chartered Accountancy from the ICAI, Delhi with an all India rank. He has also earned the right to use the Chartered Financial Analyst designation, conferred by CFA Institute, USA. Sunil has a total experience of over 20 years. He has additionally completed the Certification course for Derivatives conducted by the Bombay Stock Exchange securing an incredible 96% marks. Before his association with Reliance Mutual Fund, Sunil gained considerable experience on the sell side in Indian equity markets. He was the President of Motisons Securities Private Limited, a broking firm that he was instrumental in setting up. Later he was a Director- Research and Institutional Sales at Advani Share Brokers Private Limited, a full service broking outfit specializing in Indian equity and catering to local and global fund houses. Sunil was the Promoter of The Association of NSE

Members of India; a body of stock brokers. He also sits on the Standards & Practice Council of the CFA Institute, USA, the first and only member so far based in India to do so. Sunil is presently the Founder President of the Indian Association of Investment Professionals, the CFA India society. Having traveled extensively across the world, Sunil has attended many global investment conferences and seminars. Amitabh Mohanty: Head Fixed Income has been with Reliance Capital Asset Management Ltd., in his current assignment, for over Six years. He is a Fixed Income Portfolio Manager with over 16 years of experience. Prior to his current assignment, he had a six year stint with Alliance Capital Asset Management Ltd. as Vice President, in charge of fixed income assets. He started his career in SBI Funds Management Ltd. where he was Deputy Manager responsible for managing fixed income schemes. He is a management graduate from Indian Institute of Management, Ahmedabad from the 1996 batch and holds an electrical engineering degree from the IIT, Roorkee.

BOARD OF DIRECTORS Kanu Doshi: Mr. Kanu H Doshi, 72 years, a B.Com, B A, FCA (Chartered Accountant), is a fellow member of Institute of Chartered Accountants of India. He is also the Dean Finance, at Welingkar Institute of Management, Mumbai, where he teaches Corporate Tax Planning and Financial Management for Masters Degree of Mumbai University in Management. He regularly contributes articles to leading journals and periodicals, including leading websites like moneycontrol.com. He is co-author of Tax Holidays, Financial Accounting, and Treatise on Special Economic Zones. Mr. Doshi is a Director on the Boards of leading companies like Reliance Capital Asset Management Limited, Motilal Oswal AMC Ltd, Edelweiss Capital Asset Management Limited. S.C. Tripathi: Mr. S C Tripathi 63 years, is a M.Sc (Physics Spl. Electronics), LL B, Postgraduate Diploma in Development Studies (Cantab), AIMA Diploma in Management. He has varied experience at State, Central Govt. & International level in Public Finances, Industrial & Communal Finance & Banking. Few of the vital positions held by him, includes:

Managing Director, Industrial & Investment Corporation of U.P. (PICUP) Minister (Economy & Commerce), Embassy of India, Tokyo Secretary, Heavy Industries, & Department of Taxation & Institutional Finance, Government of UP Commissioner, Agra Division

Principal Secretary to various departments in Government of UP like Industrial Development, Governor and Finance. Adviser (Industry & Finance), Government of UP Additional Secretary, Ministry of Mines, Govt. of India. Chairman and Managing Director of Bharat Aluminum Co. (BALCO) and National Aluminum Co. (NALCO) Secretary Education, Ministry of Human Resource Development, Government of India Secretary, Ministry of Petroleum and Natural Gas, Government of India.

He is a Fellow Member of Institute of Electronics & Telecom Engineers, India and Energy Institute, U.K. He is also a Life Member of Indian Institute of Public Administration and Professional Member of All India Management Association and Member of Computer Society of India. Presently, he is Chairman of National Institute of Technology, Calicut and Chairman of Energy Institute, India and hold directorships in several limited companies. Manu Chadha: Mr. Manu Chadha 54 years, a B.Com, LL B, FCA (Chartered Accountant) is a practicing Chartered Accountant and a Senior Partner in M/s T R Chadha & Co., Chartered Accountants. He has vast experience of more than 30 years in Auditing, Financial and Management Consultancy with a specialization in corporate advisory services, project financing / governance, Corporate Laws and Management Consultancy having expertise in the areas of Consultancy to foreign companies and Joint Ventures including work relating to FEMA matters, RBI and FIPB. He had also served as Vice Chairman of Northern India Regional Council of Institute of Chartered Accountants of India for two years. He has served on the Boards of Punjab National Bank, National Insurance Co. Ltd., Dena Bank, SBI Mutual Fund, Canfin Homes Ltd., PNB Housing Finance Ltd., etc. Earlier he was on the Censor Board, Mumbai, appointed by the Information and Broadcasting Ministry and on the Direct Tax Advisory Committee, appointed by the Ministry of Finance, Government of India. He is currently on the board of GIC Housing Finance Ltd., SBI Pension Funds Pvt. Ltd. and other companies. He has recently been nominated to Investor Education and Protection Fund by the Ministry of Corporate Affairs, Government of India. Soumen Ghosh: Mr. Soumen Ghosh, 50 years, a B.Sc (Hons) Mechanical Engineering from University of London. ACA Institute of Chartered Accountants England & Wales, is a Group Chief Executive Officer of Reliance Capital Ltd., the financial services company of the Reliance Anil Dhirubhai Ambani Group since 1st April 2008. Prior to joining the ADAG

Group, he was Regional CEO of Middle East and India Sub Continent (MENA) for Allianz SE looking after Life and Non life Insurance business in countries from Egypt, GCC countries to Bangladesh. He had stints as a CEO & Country Manager of Bajaj Allianz Life Insurance Company; Bajaj Allianz General Insurance Company; and Allianz Operations in India. Prior to that he was involved in setting up operations for Allianz in South East Asia. He spent 10 years in Australia in various capacities with Allianz from CFO to Managing subsidiary companies as well as operations in the Pacific Rim. Mr. Ghosh carries with him enormous experience in the financial sector. He has held key positions in some of the most reputed financial organizations. This includes directorship at Allianz ROSNO Life (Russia), Allianz Takaful Bahrain Ltd.(Bahrain), Allianz Insurance Co. Egypt Ltd. (Egypt), Bajaj Allianz Life Insurance co. Ltd ( India); to name a few. His professional footprint has taken him to several countries across the globe.

FUTURE OUTLOOK
The Indian Mutual Fund industry is one of the fastest growing industries in the financial services sector with 44 AMCs currently operating in the country. The industry AAUM has grown at a CAGR of 25% since 1965 and at a CAGR of 10% in the last three years, with 6, 64,824 crores of average assets as on March 31, 2012. Your Company intends to aggressively pursue growth opportunities in the mutual fund industry both domestic and international and therefore be the most preferred investment choice for investors. Your Company expects that an emerging market like India would experience a sustained higher growth rate. Given the country's high household savings rate along with the current low levels of investments by retail investors where only less than 3% of the household savings is channeled into capital markets, your Company believes that the Mutual Fund Industry is still in a nascent stage and has a huge opportunity for growth and expansion. Being one of the large players in the Industry, your Company will continue investing in growing the market size, achieving product innovation, educating the investors, increasing the distribution reach, enhancing customer service infrastructure with aggressive expansion strategies.

SBI MUTUAL FUND

CORPORATE PROFILE With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd. bring forward our expertise by consistently delivering value to our investors. We have a strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies. With our network of over 222 points of acceptance across India, we deliver value and nurture the trust of our vast and varied family of investors. Excellence has no substitute. And to ensure excellence right from the first stage of product development to the post-investment stage, we are ably guided by our philosophy of growth through innovation and our stable investment policies. This dedication is what helps our customers achieve their financial objectives. Vision To be the most preferred and the largest fund house for all asset classes, with a consistent track record of excellent returns and best standards in customer service, product innovation, technology and HR practices. Services Mutual Funds Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, we developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds. Today, we have been actively managing our investor's assets not only through our investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors. This makes us one of the largest investment management firms in India, managing investment mandates of over 5.4 million investors.

Portfolio Management and Advisory Services SBI Funds Management has emerged as one of the largest player in India advising various financial institutions, pension funds, and local and international asset management companies. We have excelled by understanding our investor's requirements and terms of risk / return expectations, based on which we suggest customized asset portfolio recommendations. We also provide an integrated end-to-end customized asset management solution for institutions in terms of advisory service, discretionary and non-discretionary portfolio management services. Offshore Funds SBI Funds Management has been successfully managing and advising India's dedicated offshore funds since 1988. SBI Funds Management was the 1st bank sponsored asset management company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with an objective to provide our investors with opportunities for long-term growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies. BOARD OF DIRECTORS- AMC Mr. Pratip Chaudhuri, (Chairman & Associate Director): Qualifications : B.Sc. (Hons), MBA. Mr. Pratip Chaudhuri joined State Bank of India as Probationary Officer in 1974. He took over charge as Chairman of State Bank of India on 7th April, 2011. Immediately prior to taking over as Chairman, Mr. Chaudhuri was Dy. Managing Director & Group Executive (International Banking), Mumbai. During his illustrious career spanning 36 years in State Bank of India, he held several important positions like Chief General Manager (Foreign Offices) at Corporate Centre, Mumbai, Managing Director, State Bank of Saurashtra, Chief General Manager, Chennai Circle etc. Shri Jayesh Gandhi (Independent Director): Qualifications : B.Com, F.C.A. Shri Jayesh Gandhi is a Chartered Accountant and Senior Partner from N.M.Raiji & Co. Chartered Accountants, Mumbai. Since last 18 years Shri Gandhi has audit assignments of various companies like ICICI Group including ICICI Bank Ltd., Wipro Group, Tata Finance Ltd., Tata Tea Ltd., Tata Chemicals Ltd. and Prism Cement Ltd. He also handles various other assignments in the audit of mutual funds. He is also a director on the Board of various companies. Mr. Deepak Kumar Chatterjee (Managing Director): Qualifications: M.Sc., MBA. Mr. Deepak Kumar Chatterjee brings with him experience of over 32 years in State Bank of India in various areas such as Credit Administration, Investment Banking, International Banking Operations and Branch Management. In his previous assignment, Mr. Chatterjee was General Manger (Financial Institutions Group), International Business Group in SBI where he was handling fund raising for SBI outside India, Country Risk and Bank exposures.

Dr. H. Sadhak (Independent Director): Qualifications: MA (Eco), Ph.D (Industrial Finance) & Diploma in Operation Research for Management (DORM). Dr. Sadhak has more than 30 years of experience in Financial Services Industry including Pension Funds, Mutual Funds, Life Insurance and Banking. At present, he is an advisor in Price Waterhouse Coopers (PwC) providing advice for financial services, especially Pension & Insurance practices. He has also served on various Committees & Working Groups as a Technical Expert. He has published more about 200 articles/Research Papers. He has also received many National level awards/prizes. He has also attended several Seminar and Conference in India and abroad mostly as a speaker. He is also on the Board of the Arch Pharmalabs Ltd. (Independent Director), Clearing Corporation of India Ltd. (Nominee Director of LIC of India) & Corp Bank Securities Ltd. (Independent Director). Mrs. Madhu Dubhashi (Independent Director): Qualifications : B. Com (Delhi University), PGDBM (IIM, Ahmedabad). Mrs. Dubhashi is a graduate with Economics (Honours) from Miranda House, Delhi University (1968-71) and a post graduate in Business Administration from the Indian Institute of Management, Ahmedabad (1971-73). She has been associated with the capital market for over 37 years with an experience including assessment of viability of projects, post sanction follow ups for ICICI Bank Limited, managing of IPOs and FOOs during her tenure with Standard Chartered Bank, Investment banking division. She has also been instrumental in the set up of a data centre and facilities for financial analysis of companies rated by CRISIL in her capacity as Head of Global Data Services of India, a subsidiary of CRISIL. She is presently working with INNOVEN Business Consultancy as Managing Partner. She has addressed several seminars, written seminal papers on Non-Voting Shares and perils and dangers of permitting Buy-Back of Shares by the Indian corporate and contributed a number of articles to various reputed business journals. Dr. H. K. Pradhan (Independent Director): Qualifications: M.A. M Phil, Ph D Post Doc. Columbia University. Dr. H.K. Pradhan is a Professor of Finance & Economics at XLRI Jamshedpur. Dr. Pradhan has experience of over 23 years in teaching & research etc. He has handled various international assignments including two years as Regional Advisor, Commonwealth Secretarial Regional Advisor, Pacific Islands & Fiji Islands. He has presented several research papers in international conferences held in US, Europe, Asia, Africa and Pacific countries related to Securities and Capital Market. He has also been Member, Board of Governors, XLRI Jamshedpur (2003 -2005). Dr. Pradhan is associated with National Commodity Derivative Exchange (NCDEX) since 2008 as Member, Index & Option Committee. Shri Shyamal Acharya (Associate Director): Qualifications: B. Com, ICWA. Mr. Shyamal Acharya has an experience of over 34 years in State Bank of India (SBI). Recently, he took over as Deputy Managing Director & Group Executive (Associates & Subsidiaries) of SBI w.e.f July 01, 2011. Prior to this, Mr. Acharya was heading the Mid Corporate Group of the SBI.

Assignments held during last 10 years in SBI includes Chief General Manager, Mumbai Circle, Chief General manager, Rural Business, General Manager, Network II, Hyderabad, General Manager, Mid Corporate SBU, Mumbai. Mr. Shishir Joshipura (Independent Director): Qualifications : BE Mechanical from BITS, Pilani and Advance Management Programme (AMP) from Harvard Business School. Mr. Shishir Joshipura is the Managing Director of SKF India Limited since December 2009 and also the Country Manager for the region which includes the groups business of SKF Technologies Private Limited and Lincoln Helios India Limited. He began his illustrious career of 26 years in Thermax as a trainee engineer and served in different capacities with the organization. He was appointed as Chief Executive Officer of Thermax Energy Performance Services Limited in 1999. Mr. Shishir Joshipura has deep knowledge in the field of Energy Efficiency, Renewable Energy and Carbon Intensity Reduction. Mr. Joshipura is also a Director on the board of Lincoln Helios India Limited, Thermax Sustainability Energy Solutions Limited, Alliance for an Energy Efficient Economy (non-profit making organization). He has also been awarded as UDYOG RATTAN from Institute of Economic Studies - 2011. Mr. Thierry Raymond Mequillet (Associate Director): Qualifications : EM Lyon Masters in Management, Member of Hong Kong Securities Institute. Mr. Thierry Mequillet is a Chief Executive Officer of Amundi Hong Kong Limited, North Asia since January 1999. Prior to that, Mr. Mequillet was Chief Operating Officer of Indosuez Asset Management Hong Kong Limited. He has over 30 years of professional experience in Banking and Asset Management internationally and held various position viz.: Regional General Manager Finance & Operations, Indosuez Asset Management Asia Limited, Hong Kong; Financial Controller, Indosuez Paris; Deputy General Manager, Indosuez Singapore. Mr. Mequillet is also a Director on the board of various companies viz., Amundi HK Limited, Indosuez Asset Nominees Limited, Amundi India Holding, ABC CA, Alliance Franaise de Hong Kong. Mr. Fathi Jerfel (Associate Director): Qualifications : Engineering degree from Ecole Polytechnique, Engineering degree from the Institut Franais du Petrole & Post graduate degree in Economics (Petroleum Management) from the University of Dijon. Mr. Fathi Jerfel is Deputy Chief Executive Officer of Amundi SA in charge of investment solutions for Retail Network Division. After a start at Credit Lyonnais as Head of Financial Engineering and Fixed Income (1986-2001), he joined Crdit Agricole Asset Management in 2002 as Head of Derivatives Arbitrage & Cumulative Research. In 2005, Mr. Jerfel was appointed as Chief Executive Officer of Crdit Agricole Structured Asset Management. Some of the positions he held are: Director, Amundi; Director, Societe Generale Gestion; Chairman, Amundi Hellas MFMCSA (Exemporiki Asset Management MFCM); Chairman, Amundi SGR S.P.A.

Mr. Philippe Batchevitch (Alternate Director to Mr. Jerfel): Qualifications : SKEMA School of Management, Lille, France & Harvard Business School AMP. Mr. Philippe Batchevitch has been deputed from Amundi Group as Deputy Chief Executive Officer of SBI Funds Management Private Limited w.e.f July 20, 2011. After his first venture in New York, he moved subsequently to BFCE (French Exim Bank) in 1988 as a currency option dealer, then Bank Indosuez in 1991 where he assumed different Capital Market positions in Paris, Riyadh, Singapore, Tokyo and Istanbul. In 2003, he took the CEO role at NHCA Asset Management, joint venture set up in partnership with NH, one of the leading banking networks in South Korea. In 2007, Philippe joined Caam Ai Inc. Chicago as Country Head. Before moving to SBIFMPL, he has actively participated in the integration of international joint-ventures and partnerships on behalf of Amundi Asset Management. MANAGEMENT TEAM Mr. Deepak Kumar Chatterjee: profile discussed earlier in report Mr. Philippe Batchevitch: profile discussed earlier in report Mr. K. T. Ravindran: Chief Operating Officer, Mr. Ravindran, General Manager, State Bank of India (SBI), has over 30 years of experience in various areas at SBI such as Credit Administration, Monitoring Asset Quality, International Banking Operations, Retail Banking, Branch Management, Internal Audit functions, Circle Balance Sheet and Compliance. Prior to assuming the charge of Chief Operating Officer at SBI Funds Management Pvt. Ltd, Mr. Ravindran was Deputy General Manager (Credit) of SBI Chennai Circle. Mr. Navneet Munot: Chief Investment Officer, Navneet joined SBI Funds Management Private Limited as Chief Investment Officer in December 2008. He brings with him over 15 years of rich experience in Financial Markets. In his previous assignment, he was the Executive Director & head - multi - strategy boutique with Morgan Stanley Investment Management. Prior to joining Morgan Stanley Investment Management, he worked as the Chief Investment Officer - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Several funds managed by Navneet got recognition for their consistent superior risk-adjusted performance and won several awards from independent agencies such as CRISIL-CNBC TV 18, ICRA, Reuters Lipper and got top ranking in Value Research. Navneet had been associated with the financial services business of the group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. His articles on matters related to financial markets have widely been published. Navneet is a postgraduate in accountancy and business statistics and a qualified Chartered Accountant. He is also a charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM charter holder of Global Association of Risk professionals (GARP).

Ms. Aparna Nirgude: Chief Risk Officer, Aparna has rich experience of over 17 years with SBI Mutual Fund and has been heading the Risk function since 2005. Prior to this, she has handled various responsibilities within Investment Management and Research. Before taking charge as Chief Risk Officer, she headed the Research function in SBI Mutual Fund. Aparna holds a degree in Management from the prestigious Jamnalal Bajaj Institute of Management Studies. Mr. R. S. Srinivas Jain: Chief Marketing Officer, Srinivas Jain has an experience of over 18 years in the Financial Services industry, with over 13 Years in Asset management companies apart from Broking and Investment Advisory companies; he has been associate with SBI Funds Management since 2001. He is currently the Chief Marketing Officer at SBI Funds Management Pvt Ltd, a joint venture between State Bank of India, the largest commercial bank in India and AMUNDI Asset Management, (Paris). SBI Funds management today is a leading asset management company in India managing with over 6 Million Investors. Srinivas Jain took over as Chief Marketing officer in Feb 2005 prior to which he was Regional head - South for SBI funds Management Pvt. Ltd from 2001. Apart from many recognition the fund house has received, he was instrumental in SBI Mutual Fund being awarded as the most preferred Mutual Fund for 2 years in a row from CNBC Awaaz. And the brand has consistently been rated as the no. 1 brand in the mutual fund space by AC Neilsen in the survey Winning Brands in terms of consumer preference equity, saliency, ratios and imagery. SBI Mutual fund was recently voted Gold by Readers Digest as Trusted Brand 2011 in the Investment Management Category. He not only represents SBI Funds Management in various forum, but also is actively involved in various initiatives in mutual fund industry. He guides and leads enthusiastic and passionate team of 200+ bright professionals across the country and oversees business development , distribution, product management and marketing & corporate communication functions of the company. He is a Commerce Graduate from Bangalore University with a Cost Accounting background. Mr. Rakesh Kaushik: Sr. Vice President (Accounts & Administration), Mr. Kaushik has over 26 years of experience with the State Bank group out of which 17 years is with SBI Funds Management Private Limited in the areas of Finance, Audit, Taxation, Administration, Operations, Customer Service and Compliance. Prior to joining SBI Funds Management Private Limited, he worked with State Bank of India and State Bank of Patiala in the areas of Retail Banking, Accounts, Foreign Exchange and Credit. Mr. D.P.Singh: Head of Sales, Mr. D. P. Singh has experience of more than 20 years and is associated with SBIFMPL since 1998. Mr. Singh was appointed as Head of Sales in 2008 and is responsible for supervising the sales function of various SBIMF schemes and administering the

Sales Offices across the country. Prior to this, he was designated as Zonal Head North of SBIFMPL. Ms. Vinaya Datar: Company Secretary & Compliance Officer, Ms. Vinaya Datar has overall experience of more than 15 years, including over 8 years in the field of financial services. She has extensively worked in the areas of Compliance, Secretarial, and Legal. Prior to this assignment, she was Assistant Vice President - Compliance with Mirae Asset Global Investments (India) Pvt. Ltd. Ms. Datar has also been previously associated with Reliance Capital Asset Management Ltd, IL&FS Limited and UTI Infrastructure & Services Limited. Mr. C. A. Santosh, Head - Customer Service: Mr. C. A. Santosh has joined SBI Funds Management (P) Ltd as Chief Manager - Customer Service. He has over 12 years of experience and started his career in the Aviation Industry (Customer Service) and later moved on to Banking. His last assignment was in the Kotak Mahindra Bank as Chief Manager - Customer Contact Center. PERFORMANCE OVERVIEW Performance of Equity Schemes: a) 67% of our equity assets under management are in top 2 quartiles on a one year horizon b) Most of our equity schemes outperformed their respective benchmarks by more than 200 basis points c) SBI Magnum Emerging Business Fund continues its top decile performance.

FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES (for the year

ended march 31, 2012) EQUITY OUTLOOK*: As the Murphys law says, anything that can go wrong will go wrong. India was a classic example of this. Sticky inflation, depreciating currency and rising interest rates coupled with policy inaction and execution failure led to a poor performance by Indian capital markets during FY 2012. Corporate profitability took a major hit further impacting asset creation. Political situation remained worrisome which put the whole policy making in jeopardy. Headwinds from overseas markets, mostly fuelled by debt crisis in Europe, were also the key triggers for the poor performance of stock markets in India. Corporate profitability is likely to remain depressed in the near future given the higher input costs, wages, interest rates, steep depreciation in currency and higher competitive intensity. With a hazy outlook and depressed profitability, corporate India seems reluctant to commit new capital locally. Most of the capex has been stalled, delayed or suspended. The situation will certainly put to test Indian corporates wherewithal to navigate this challenging business environment. The economy cannot afford continuance of sticky inflation, rising interest rates and a weaker currency. While demand is an addressable issue with marginal stretch from the policy side it is the governance that needs to step-up its response to the glaring supply gap on most of the input parameters.One can expect a tactical readjustment by polity to get the structural India story back on track sooner. There exists a possibility of an outlier blue-swan of synchronized occurrence of favorable events like softened interest rates, global commodities and reversal of the currency slide (they all have high interlinks). In Todays pain lies tomorrows gain. We expect this period to offer a good opportunity to investors to participate in the long term India story. In this scenario we prefer to focus on bottom up stock picking with core beliefs in terms of quality (business, management, and cash flows), prudence (on cash utilization) and agility (in terms of timing and allocation). We prefer to look for businesses with strong franchise value, large consumption compulsion canvass opportunity and penetration potential. We also remain alert to opportunities that provide tactical returns on Asset plays at attractive valuations and rate sensitives given impending policy response. We recommend investors to maintain the discipline of asset allocation and use the downturn in equity market as an opportunity to gradually build exposure.
*only equity outlook is taken into consideration because we are dealing with equity schemes

Operations of the schemes: SBI Mutual Fund manages 28 open ended and 11 close ended schemes, out of which 17 are equity schemes (2 close ended),1 balance scheme, 2 liquid schemes,1 gilt scheme,16 debt schemes (9 close ended) and 1 Gold ETF scheme & 1 Gold Fund scheme. SBI Mutual Fund continues to hold certain securities which were sold by it but these have not been got transferred by the buyers in their names. These securities do not belong to SBIMF, but are held on behalf of the unknown buyers and not as Owners/Investors. Such securities are transferred to the buyers against claims after establishing the genuineness of the claim. The market value of such securities as on 31st March 2012 is ` 14.89 crore Scheme-wise commentary*: SBI Blue Chip Fund: has generated a return of (5.34%) (31st March 2011 to 31st March 2012) as compared to a return of (9.23%) for its benchmark (BSE100). The fund has outperformed the benchmark due to its underweight on Financials, Materials, Industrials and IT. Magnum Tax Gain Scheme 1993: has performed very well and has outperformed the benchmark index (BSE100). Most of our sectoral calls, in terms of being underweight financials and overweight pharmaceuticals, cement, etc., have worked well for us. Even our bottoms up stock picks have performed exceedingly well contributing meaningfully to the performance of the Fund. SBI Infrastructure Fund Series I: has generated a performance of (16.61%) during the period 31st March 2011 to 31st March 2012, as compared to a return of (9.23%) for its benchmark (BSE100). The fund cannot invest in Healthcare and Consumer Staples, which were the main drivers of performance of the BSE 200 during the fiscal year 2011/2012. Magnum NRI FAP: has generated a return of (2.92%) during the period 31st March 2011 to 31st March 2012, as compared to a return of (9.23%) for its benchmark (BSE100). The fund outperformed the benchmark through the execution of active asset allocation between equity and cash to benefit from increased volatility in the market. Magnum IT Fund: has generated a return of (3.15%) (31st March 2011 to 31st March 2012) as compared to a return of (7.12%) for its benchmark (BSE IT Index). The outperformance was driven by higher allocation to midcaps and prudent stock selection among large-caps. Magnum FMCG Fund: has generated a return of 26.63% (31st March 2011 to 31st March 2012) as compared to a return of 24.94% for its benchmark. (BSEFMCG Index). The fund has outperformed the benchmark due to overweight on VST Industries, TTK Prestige, Marico and underweight on United Spirits and Dabur. Magnum Index Fund has generated a return of (8.96%) (31st March 2011 to 31st March 2012) as compared to a return of (9.23%) for its benchmark (S&P CNX Nifty). The Magnum Index

Fund does not take any view on the market, the objective being to replicate the performance of its benchmark. Magnum Pharma Fund: has generated a return of 9.66% (31st March 2011 to 31st March 2012) as compared to a return of 10.00% for its benchmark (BSE Healthcare Index). Though, the fund benefited from positive active exposure in IPCA, Divis, Strides and from holding Lupin, the fund underperformed the benchmark from being underweight Sun Pharma, GSK Pharma and Ranbaxy. SBI Arbitrage Opportunities Fund has generated a performance of 8.62% (31st March 2011 to 31st March 2012) as compared to a return of 8.45% for its benchmark (Crisil Liquid Fund Index). With the advent of technology on the trading desks, arbitrage opportunities have shrunk drastically over the last few years. Nevertheless, the fund is still delivering returns better than Crisil Liquid Fund Index, its benchmark.
*only project sample schemes are discussed here

COMPARISION OF VARIOUS SCHEMES UNDER EQUITY*

*further the ten set of comparisons stated below are taken as sample and explained in detail as part of the study. Comparisons are named as comparison.1, comparison.2 up to comparison.10 for convenience of presentation and ease of use.

Scheme Fund class Fund Type Ranking Scheme assets rs in cr (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) AMC Assets (in cr, as on june 30,2012) Latest NAV (Rs/unit) Performance 3 months 6 months 1 year Portfolio Top 5 holdings

COMPARISON 1 ICICI Pru Focused SBI Blue Chip Fund Bluechip Equity (G) (G) Large cap Large cap Open ended Open ended Rank 1 Rank3 3809.54 686.36 May 7, 2008 S&P CNX NIFTY 5000 73049.66 16.50000 Jan 20, 2006 BSE 100 5000 47184.11 14.54000

Reliance Equity Fund-RP(G) Large cap Open ended Rank5 1056.83 Mar 07, 2006 S&P CNX NIFTY 5000 80694.47 13.25910

9.1% -3.5% 10.1% HDFC bank, ITC, Infosys, ICICI Bank, Bajaj auto 34.94% Banking/Finance, Technology, oil and gas 50.48%

11.8% 3.3% 12.5% HDFC, HDFC Bank, ICICI Bank, Infosys, HCL Tech 27.86% Banking/finance, technology, pharmaceuticals 50.54%

13.2% -2.0% 11.0% Divis labs, Reliance, ICICI Bank, Infosys, HCL Tech 23.88% Engineering, automotive, Pharmaceuticals 35.79%

Weightage to top 5 holdings Top 3 Sectors

Weightage to top 3 sectors

Management & fees Manish Gunwani Sohini Andani OmPrakash kuckian Fund manager 0% 0% 0% Entry load 1.00% 0% 1.00% Exit load ANALYSIS: ICICI Pru Focused Bluechip Equity is ranked 1 in large cap category by Crisil. It is advised as a strong buy with Latest NAV of 16.500 as on Aug 17, 2012 and if already invested then investment should be continued in this scheme. Whereas SBI BlueChip fund is ranked 3 in this category and investors are advised to switch to a better performance scheme at this stage as its NAV as on Aug 17, 2012 is 14.540 on the other hand reliance equity fund is performing relatively weak and ranked 3 with NAV of 13.359 which is very less as compared to other two schemes COMPARISON 2 SBI Magnum Tax Gain ICICI Pru Tax Plan ELSS Open Ended Rank 1 1295.14
ELSS Open Ended Rank 3 4518.12

Scheme Fund class Fund Type Ranking Scheme assets rs in cr (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) AMC Assets (in cr, as on june 30,2012) Latest NAV (Rs/unit) As on Aug 17, 2012

Reliance Tax Saver (ELSS) ELSS Open Ended Rank 2 1969.84

Aug 09, 1999 S & P CNX 500 500

Mar 31, 1993 BSE 100 500

Aug 23, 2005 BSE 100 500

73,049.66

47,184.11

80,694.47

138.96000

60.80000

21.75220

Performance 3 months 6 months 1 year Portfolio Top 5 holdings Reliance, Infosys, Bharti Airtel, ICICI Bank, Hind Zinc 32.1%
HDFC Bank, ICICI Bank, TCS, HDFC, Grasim Eicher Motors, Maruti Suzuki, Madras Cements, Bajaj Finance,SBI 25%

9.5% -0.8% 9.9%

9.9% 1.8% 12.4%

7.3% 0.8% 11.9%

Weightage to top 5 holdings Top 3 Sectors

25.06%

Oil and gas, Banking/Finance, Technology 51.36%

Banking/Finance, Technology, Pharmaceuticals 45.11%

Engineering, Automative, Banking/Finance 51.54%

Weightage to top 3 sectors

Management & fees Fund manager

Chintan Haria

Jayesh Shroff

Ashwani Kumar/Viral Berawala 0% 0%

Entry load Exit load

0% 0%

0% 0%

ANALYSIS: In ELSS category, there are various fund houses that offers scheme as it is very attracting to customers, ICICI Pru tax plan is ranked 1 in this category by CRISIL as it has a very good performance and recommended as a strong buy, whereas SBI is ranked 3 and is an average performer here and reliance is ranked 2 and recommended to be kept but also with an alert to keep a check on the performance due to its decreasing NAV

Scheme

COMPARISON 3 SBI Infrastructure Fund ICICI Pru Series I Infrastructure Fund Thematic Infrastructure Open Ended Rank 3 1864.49
Thematic Infrastructure Open Ended Rank 4 649.80

Reliance Infrastructure Fund Thematic Infrastructure Open Ended NOT RANKED 633.01

Fund class

Fund Type Ranking Scheme assets rs in cr (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) AMC Assets (in cr, as on june 30,2012) Latest NAV (Rs/unit) As On Aug 17, 2012

Aug 16, 2005 BSE 100 5000

May 11, 2007 BSE 100 5000

June 23, 2009 BSE 100 5000

73,049.66

47,184.11

80,694.47

25.11000

7.65000

6.67810

Performance 3 months 6 months 1 year Portfolio Top 5 holdings Reliance, ONGC, HDFC Bank, Bharti airtel, ICICI Bank HDFC Bank, ICICI Bank, Power Grid Corp, Coal India, ONGC 34.73% ICICI Bank, KSB Pumps, Jaiprakash Asso, Jindal Saw, Larsen 24.87% 9.9% -9.1% -2.3% 11.5% -8.2% -8.2% 3.5% -18.5% -5.2%

Weightage to top 5 holdings Top 3 Sectors

36%

Banking/Finance, Oil & Gas, Utilities 56.81%

Banking/Finance, Oil & Gas, Cement 64.12%

Cements, Metals & Mining, Engineering 58.43%

Weightage to top 3 sectors Management & fees Fund manager Entry load Exit load

Yogesh Bhatt 0% 1.00%

Ajit Dange 0% 1.00%

Sunil Singhania 0% 1.00%

ANALYSIS: In themetic infrastructure category, these fund houses are not doing well, ICICI Pru, an outperformer, is ranked 3 in this category with an average buy and a better switch to other scheme recommendation. Whereas SBI is ranked 4 with below average performance and sell recommendation but Reliance has not yet gained any rank or recommendation.

Scheme Fund class

COMPARISION 4 SBI Magnum NRI fund FAP Equity Oriented Hybrid Specialty Funds Open Ended NOT RANKED

Reliance NRI Equity Fund Diversified Equity

Fund Type Ranking

Open Ended

NOT RANKED
91.25

Scheme assets rs in cr 7.00 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) Jan 13, 2004 BSE 200 50000

Nov 01, 2004

5000

AMC Assets (in cr, as 47184.11 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 6.2% 1.2% 3.7% 28.95150

80,694.47

38.73480

11.3% -0.7% 11.3%

Portfolio Top 5 holdings Coal India, HUL, NTPC ICICI Bank, ONGC 24.62%
ICICI Bank, HUL, Maruti Suzuki, Tata Motors, Reliance 26.09%

Weightage to top 5 holdings Top 3 Sectors

Banking/Finance, Metals & Mining, Utilities 29.07%

Banking/Finance, Technology, Engineering 49.86%

Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

Ajit Dange 0% 0.25%

Omprakash Kuckian 0% 1.00%

ANALYSIS: SBIs NRI fund fall under equity oriented hybrid specialty category and Reliances NRI scheme fall under diversified equity category. Both are not ranked and not showing any good performance still from dec 2011 till now reliance has shown a gradual incress but its NAV is lower by 0.03%. by analyzing the past performance we can expect future rise in this fund as the top sector of banking and finance are stronge. Now if we talk about SBI its performance is quite fluctuating with a low in dec 2011 and a high on juneaug 2012 so the comment for this scheme are reserved at this point of time

Scheme Fund class Fund Type Ranking

COMPARISON 5 ICICI Pru Bkg & Fin serv Sector- Banking & Finance Open Ended NOT RANKED

Reliance Banking Fund Sector- Banking & Finance Open Ended

NOT RANKED
1671.49

Scheme assets rs in cr 143.94 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) Aug 07, 2008 BSE Bankex 5000

May 21, 2003 Bank Nifty 5000

AMC Assets (in cr, as 73,049.66 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 15.2% 0.6% 14.7% 18.29000

80,694.47

96.41630

11.9% -7.4% 16.4%

Portfolio Top 5 holdings HDFC Bank, ICICI Bank, M&M Financial, Indusland Bank, Sundaram Fin 57.09%
ICICI Bank, HDFC Bank, Bajaj Finance, SBI, Federal Bank

Weightage to top 5 holdings Top 3 Sectors Weightage to top 3 sectors

Management & fees Fund manager

51.14%

Banking/Finance 97.01%

Banking/Finance 87.63%

Venkatesh Sanjeevi

Sunil Singhania/ Shrey Loonker/ Sanjay Parekh 0% 1.00%

Entry load Exit load

0% 0.50%

ANALYSIS: However this category is not ranked by CRISIL but there is no out performance by any of the funds, fluctuation is very high in case of ICICI Pru whereas Reliance is not at all showing any better with an all time low but from January to march 2012 it showed a gradual increase and from march onwards, it started showing a decrease.

Scheme Fund class Fund Type Ranking

COMPARISON 6 ICICI Pru Tech. Fund Sector- Technology Open Ended NOT RANKED

SBI Magnum IT Fund Sector- Technology Open Ended

NOT RANKED
40.96

Scheme assets rs in cr 106.56 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) Jan 28, 2000 BSE Teck 5000

Jul 31, 1999 BSE Info Tech 2000

AMC Assets (in cr, as 73,049.66 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 4.3% 0.5% 24.6% 18.58000

47,184.11

22.17000

3.4% -7.3% 16.3%

Portfolio Top 5 holdings Infosys, MindTree, Oracle Financ, Wipro, Persistent 81.51%
Infosys, TCS, HCL Tech, Wipro

Weightage to top 5 holdings Top 3 Sectors Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

86.08%

Technology 93.22%

Technology 97.01%

Mrinal Singh 0% 1.00%

Anup Upadhyay 0% 1.00%

ANALYIS: Technology is an interesting sector to keep in portfolio, however it is not showing a peak of growth but it is not at all an underperforming sector. If we look at the past performance of SBI it was at an all time low in August 2011 but from there on it increased with a fluctuation to achieve an all time high in Feb-March 2012 but it is somewhat a fluctuating scheme. ICICI is also a similar performer in this category but entering into this scheme with SBI is quite easy and its NAV are better too, so it is recommended over ICICI.

Scheme Fund class Fund Type Ranking

COMPARISION 7 ICICI Pru FMCG Fund Sector- FMCG Open Ended NOT RANKED

SBI MSFU- FMCG Fund Sector- FMCG Open Ended

NOT RANKED
83.61

Scheme assets rs in cr 156.72 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) Mar 30, 1999 BSE FMCG Sector 5000

Jul 31, 1999

2000

AMC Assets (in cr, as 73,049.66 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 8.2% 21.7% 24.9% 96.45000

47,184.11

43.11000

9.8% 23.8% 33.5%

Portfolio Top 5 holdings ITC, HUL, Marico, VST, GlaxoSmith Con 76.99%
ITC, HUL, GlaxoSmith Con, Emami, Dabur India 68.53%

Weightage to top 5 holdings Top 3 Sectors

Tabacco, Cons Nondurables, Food & Beverages 88.35%

Tabacco, Cons Nondurables, Food & Beverages 93.05%

Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

Yogesh Bhatt 0% 1.00%

Saurabh Pant 0% 1.00%

ANALYSIS: These are the only two houses dealing in the FMCG sector at this stage, ICICI is doing quite well with an all time high in AUG 2012, whoever purchased the scheme in Dec 2011 must be enjoying the benefits. FMCG is very fast growing sector in india and is considered as very important from future outlook, SBI is also doing quite good
But a pro investor would prefer ICICI for this sector.

Scheme Fund class Fund Type Ranking

COMPARISON 8 SBI Magnum Index Fund Index Open Ended Rank 4

Reliance Index Fund Nifty Plan Index Open Ended

Rank 3
65.74

Scheme assets rs in cr 34.69 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) Jan 14, 2002 S&P CNX Nifty 5000

Sep 23, 2010 S&P CNX Nifty 5000

AMC Assets (in cr, as 47.184.11 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 10.6% -3.8% 8.8% 45.94860

80,694.47

8.88530

10.9% -3.4% 9.7%

Portfolio Top 5 holdings ITC, Reliance, ICICI Bank, Infosys, HDFC Bank 35.22%
ITC, Reliance, ICICI Bank, Infosys, HDFC Bank 36.02%

Weightage to top 5 holdings Top 3 Sectors

Banking/Finance, Oil & Gas, Technology 52.04%

Banking/Finance, Technology, Oil & Gas 48.8%

Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

Raviprakash Sharma 0% 1.00%

Krishan Daga 0% 1.00%

ANALYSIS: In this category, Reliance is ranked 3 by CRISIL as an average buy and ICICI is ranked 5 as a strong sell because it is showing a week and relatively fluctuating performance, so here Reliance is a better choice obviously.

Scheme Fund class Fund Type Ranking

COMPARISON 9 SBI Magnum Pharma Fund Sector- Pharma & Health Care Open Ended NOT RANKED

Reliance Pharma Fund

Sector- Pharma & Health Care

Open Ended

NOT RANKED
584.07

Scheme assets rs in cr 42.39 (as on june 30,2012) Inception date Bench mark Mininmum Jul 31,1999 BSE Healthcare Sector 2000

May 26, 2004 BSE Healthcare Sector 5000

investment (in rs.) AMC Assets (in cr, as 47184.11 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 11.0% 17.5% 22.6%
10.6% 12.7% 15.9% 80,694.47

54.06000

62.42700

Portfolio Top 5 holdings Dr Reddys Lab, Lupin, Cadila Health, Cipla, Divis Labs 51.41%
Divis Labs, Sanofi India, Cipla, Ranbexy Labs, Sun Pharma 44.63%

Weightage to top 5 holdings Top 3 Sectors

Pharmaceuticals

Pharmaceuticals, Food & Beverages

98.17%

Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

93.81%

Tanmaya Desai 0% 1.00%

Sailesh Raj Bhan 0% 1.00%

Analysis: However none of these schemes are ranked by crisil but if we analyses the performance of these two schemes it is evaluated that they are doing well and there Latest NAV is quite good so for the diversification purpose these schemes can be kept in the portfolio and when we have a look at the relative performance reliance is doing better than SBI on the other hand SBI has lesser minimum investment obligation then reliance but the difference is negligible so Reliance is recommended over SBI

Scheme Fund class Fund Type Ranking

COMPARISON 10 SBI Arbitrage Opp. Fund Arbitrage & Arbitrage plus Open Ended NOT RANKED

Reliance Arbitrage Advantage Arbitrage & Arbitrage plus Open Ended

NOT RANKED
1.56

Scheme assets rs in cr 66.09 (as on june 30,2012) Inception date Bench mark Mininmum investment (in rs.) 25000 Sep 15, 2006

Oct 08,2010

5000

AMC Assets (in cr, as 47184.11 on june 30,2012) Latest NAV (Rs/unit) as on Aug 17, 2012 Performance 3 months 6 months 1 year 2.3% 5.3% 9.0% 15.25090

80,694.47

11.80680

3.1% 5.9% 9.6%

Portfolio Top 5 holdings Weightage to top 5 holdings Top 3 Sectors N.A. Sun Pharma, United Spirits, Divis Labs, Guj Flourochem, Larsen 34.71%

Banking/Finance, Technology, Metal & Mining 31.46%

Pharmaceuticals, Food & Beverages, Chemicals 31.1%

Weightage to top 3 sectors

Management & fees Fund manager Entry load Exit load

Suchita Shah 0% 0.25%

Krishan Daga 0% 1.00%

ANALYSIS: Arbitrage is quite interesting category to invest and those who invested in Aug 2011 are enjoying the gradual increase and very well performance of this category from low in Aug 2011 to a high in Aug 2012. Arbitrage schemes of both the fund houses are performing in a very similar way but the NAV of SBI is slightly higher the Reliance. It should be noticed that the minimum enter amount of SBI I quite high the Reliance and also the Exit load is quarter less the Reliance.

CONCLUSION
The construction of the mutual fund schemes portfolio is done by taking various factors so even after evaluating the mutual funds and ranking them we cannot say which is the best fund house or scheme in all. Nothing is certain in case of mutual funds as they are subject to market risks, An estimate can be made considering various past performances and future outlooks and best money out of these schemes can be generated.

LATEST AMENDMENTS IN MUTUAL FUNDS

In august first week, markets and mutual fund regulator SEBI came out with a package of new and reformed rules regarding mutual funds, IPOs and investment advisers. In mutual funds, the thrust of the changes is to set up an incentive system that will allow asset management companies to charge higher expenses if they succeed in making inroads outside the larger cities where fund investors are currently concentrated in. The new rules also incorporate a series of other changes that collectively improve funds economics while imposing a somewhat higher cost on investors. A back-of-the-envelope calculation shows that the industry, hypothetically, will pocket close to Rs 583 crore if it charges 30 basis points on the existing equity asset base (combined AUM of equity, balanced and ELSS Funds) of Rs 1,94,320 crore. The industry had a total AUM of Rs 7, 30,000 crore on July 30. Out of the total Rs 583 crore, at least 80% of the additional fee will be pocketed by the top five fund houses including HDFC Mutual,ICICI Prudetial mutual fund, Reliance mutual fund, UTI mutual fund, and Birla Sunlife Mutual Fund. A grey area in the new norms is that SEBI has not clarified on aspects such as the least amount fund houses should raise in a year or the minimum number of investors it should have to avail of the benefit of the extra fee of 30 basis points. CHANGING COURSE June 28: PM says MFs need to be revived July 2: MFs meet FinMin officials July 17: MFAC meets to discuss measures Early August: Minutes of the meeting circulated; these include a 2% charge for marketing at centres outside the top 15 MFAC members say the measure was not discussed; Sebi amends the minutes August 16: SEBI board to meet

REFERENCES www.amfiindia.com www.valueresearchonline.com www.mutualfundsindia.com www.reliancemutual.com www.sbimf.com www.icicipruamc.com www.moneycontrol.com