2

UTI MUTUAL FUND

Largest MF in the Country with AUM of About Rs.

25228 crores (as on Dec 31, 2005)

Equity AUM of approx. Rs 12,100 crores

55 Domestic Funds, 5 Offshore Funds

29 Equity, 24 Debt and 2 Balanced Domestic Funds

Dedicated Equity Research Cell to assist Fund

Managers

Comprehensive risk management practices

Most extensive marketing network - 67 UFCs, 340

District representatives

3

INDIAN ECONOMY

&

STOCK MARKET

4

India among the fastest growth economies of the wor

ld

Domestically driven economy

India Getting Younger and Richer

Economic growth led by Consumption

Corporate India getting Healthier

CAPEX in a competitive environment

Infrastructure Spending on an anvil

Reflation Theory may work in future

Be a Winner by investing in UTI Leadership Fund

STRONG ECONOMIC GROWTH

5

ECONOMIC GROWTH AND EQUITY MARKETSECONOMIC GROWTH AND EQUITY MARKETS

During Periods of Strong Economic Growth, Equity Markets Perform

Strongly

Two Prominent Cases

Domestic Investment Led Growth in the US A(1948-1964)

Export Led Growth in Japan (1970-1985)

Several Countries Have Gone Through Similar Inflection Periods

Chinese Growth Led By Manufacturing Outsourcing

Indian Growth Led By Services Outsourcing and Domestic

Demand Driven By Increased Consumption and Current Low

Leverage

6

Global Indices – YTD trends

Relative valuations

(1,000)

(500)

0

500

1,000

1,500

2,000

2,500

Jan-

05

Feb-

05

Mar

-05

Apr

-05

May

-05

Jun-

05

Jul-0

5

Aug

-05

Sep-

05

Oct

-05

Nov

-05

(USD mn)

MF US $mn (LHS) FII US $mn (LHS) Sensex (RHS)

0

2,000

4,000

6,000

8,000

10,000

Valuations much lower than at historic peaks

Indian economy and companies have highersustainable growth rates

Indian economy is relatively more insulated froma global slowdown

Indian companies have better operating and financial parameters

India is quoting at about 14 times FY07 earnings

80

90

100

110

120

130

140

150

160

170

180

Jan-0

5

Feb-0

5

Mar

-05

Apr-

05

May

-05

Jun-0

5

Jul-05

Aug-0

5

Sep

-05

Oct

-05

Nov-

05

Dec

-05

India Brazil China Russia Korea

Source :Bloomberg

Country Trailing PE FWD PERussia 14.3 11.6Korea 11.5 12.2Brazil 10.1 9.4India 20.4 16.61China 13.3 11

INDIA VALUATION COMPARABLE TO EMERGING MARKET

7

LEADERSHIP CONCEPT

&

CHARACTERSTICS

8

UTI LEADERSHIP EQUITY FUND - CONCEPT

Investing in stocks that are ‘Leaders’ in their

respective industries/ sectors /sub-sectors

Leaders are those companies having

• Higher market shares

• Strong brand equity

• Better operating efficiencies

• Better access to capital

• Significant / sustainable competitive advantages

9

LEADERS HAVE A PROVEN TRACK RECORD

Tend to have long history of operations

Experience of going through economic cycles

Achieving leadership position by building

economies of scale and Sustainable competitive

advantage

10

HIGHER DEGREE OF TRANSPARENCY

High degree of corporate governance Professionally driven companies Management actions directed to enhance

shareholder’s value

‘Corporate Governance and Equity Prices’ by Paul Gompers

of Harvard and Andrew Metrick of the University of

Pennsylvania’s Wharton School found that ‘firms with stronger shareholder rights had higher firm value, higher profits, higher sales growth.’

11

MODEL PORTFOLIO OF LEADERS - A BACK TESTING

Portfolio of Leaders• A portfolio of leaders was constructed by choosing 35

companies from 34 sectors/sub-sectors who are leaders in the respective sector/subsectors.

CNX Mid Cap Indices• It consist of companies which are not leaders in

respective sectors

Stock market performance and Financial performance of Portfolio of leaders are compared with indices containing non - leaders

12

LEADERS DO WELL IN RISING MARKET

Leaders give higher return in the rising market

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00

4500.00

5000.00

5500.00Portfolio of Leaders

CNXMID Index ( 200)

CNXMCAP Index (100)

Nifty

CNX Midcap index (200) is discontinued after July 2005

Time Period Portfolio of Leaders

CNXMID Index ( 200)

CNXMCAP Index (100)

Nifty

May 2003 - Feb 2004 125% 105% 109% 98%Jan 2005-Dec 2005 68% NA 33% 34%

13

LEADERS PROTECT THE GAINS IN FALLING MARKET

Leaders decline less in the falling market

CNX Mcap Index (100) is available from Jan 2001

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00

4500.00

5000.00

5500.00Portfolio of Leaders

CNXMID Index ( 200)

CNXMCAP Index (100)

Nifty

Time Period Portfolio of Leaders

CNXMID Index ( 200)

CNXMCAP Index (100)

Nifty

Feb 2000- Sep 2001 -42% -62% NA -50%Feb 2004-July 2004 -12% -11% -16% -19%

CNX Midcap index (100) is available from Jan 2001

14

LEADERS DO WELL OVER SHORT AND LONG PERIODS

Be a winner by staying invested with Leaders

Time Period ( As on Dec 23, 2005)

Portfolio of Leaders

CNXMCAP Index (100)

Last One year 68% 33%Last Two years 126% 60%Last Three years 449% 296%Last Four years 570% 381%Last Five years 473% 240%

15

LEADERS DO WELL COMPARED TO BROADER MARKET

Be a winner by staying invested with Leaders

Time Period ( As on Dec 23, 2005)

Portfolio of Leaders

CNX500 Nifty

Last One year 68% 34% 35%Last Two years 126% 51% 44%Last Three years 449% 213% 157%Last Four years 570% 233% 156%Last Five years 473% 152% 111%Last Six years 426% 101% 89%

16

LEADERS DO WELL DURING ECONOMIC UPSWING

Leaders are major beneficiaries during Economic upswing

Period of 2000-05 was marked with economic upswing with India’s GDP has grown in

excess of 6% 2000-05 (Multiple) Portfolio of leaders CNX 200Sales growth 1.98 1.80OP Profit growth 2.91 1.82PAT growth 2.93 2.27

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

550000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

SALES of 'Portfolio of Leaders'

SALES of CNX 200

OPof 'Portfolio of Leaders'

OP of CNX 200

PATof 'Portfolio of Leaders'

PAT of CNX 200

Rs in crores

17

LEADERS - ABILITY TO WITHSTAND DOWNTURNS

1995-00 ( Multiple) Portfolio of leaders CNX 200Sales growth 2.19 2.01OP Profit growth 2.95 1.91PAT growth 2.13 1.35

Leaders can withstand tremors of the economy better

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

550000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

SALES of 'Portfolio of Leaders'

SALES of CNX 200

OPof 'Portfolio of Leaders'

OP of CNX 200

PATof 'Portfolio of Leaders'

PAT of CNX 200

Rs in crores

Period of 1995-2000 was marked with economic slowdown after liberalization of economy in 91-92

18

LEADERS DO WELL EVEN DURING FULL ECONOMIC CYCLE

1995 - 2000 was a period of slowdown while 2000 -

2005 was period of economic upswing

1995-2005 (CAGR) Portfolio of leaders CNX 200Sales growth 15.79% 13.73%OP Profit growth 23.96% 13.26%PAT growth 20.08% 11.87%

Growth in sales, Op. profit and PAT of companies in ‘Portfolio of Leaders’ have been higher compared to that of non-leaders over last ten year period

Leaders have sustainable earnings and hence give sustainable returns

19

EARNINGS OF LEADERS HAVE LOW VOLATILITY

Leaders have sustainable earnings and hence give sustainable returns

PAT Growth0%

5%

10%

15%

20%

25%

30%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

CNX 200

PORTFOLIO OF LEADERS

Sales Growth

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

CNX 200

PORTFOLIO OF LEADERS

PAT Growth

20

LEADERS ARE GLOBALLY COMPETITIVE

Liberalisation of economy in 1991

Peak custom duty cut from over 100% in ‘93 to about 20% in

2005.

Operational and financial restructuring leading to higher margins.

OPM improved for companies in ‘portfolio of leaders’ from 6.28%

in 1993 to 13.82% in 2005

NPM improved for ‘portfolio of leaders’ from 5.05% in 1993 to

11.32% in 2005

21

INDIAN LEADERS CAN BE TOMORROW’S GLOBAL MNCS

Be a winner by staying invested with Leaders

Indian CompaniesSales Rev Turn

(USD Bn)Global companies

Sales Rev Turn (USD Bn)

INDIAN OIL CORP 29.66 ROYAL DUTCH/SHEL 265.0 RELIANCE INDS 14.72 EXXON MOBIL CORP 263.0 OIL & NATURAL GA 12.95 BP PLC 285.1 STATE BANK IND 11.13 HSBC HLDGS PLC 72.6 TATA MOTORS LTD 4.35 GENERAL MOTORS 193.5 TISCO 3.53 THYSSENKRUPP AG 53.4 LARSEN & TOUBRO 3.21 ABB ASEA BROWN 30.9 MARUTI UDYOG LTD 2.48 DAIMLERCHRYSLER 176.6 HINDUSTAN LEVER 2.37 KIMBERLY-CLARK 15.1

TATA CONSULTANCY 2.18 IBM 96.3 MAHINDRA & MAHIN 2.09 TOYOTA MOTOR 172.6 BHARTI TELEVEN 1.81 AMERICA MOVIL-A 134.7 ITC LTD 1.79 ALTRIA GROUP INC 64.0 HERO HONDA MOTOR 1.65 FORD MOTOR CO-B 171.7 RANBAXY LABS LTD 1.16 TEVA PHARMA 4.8 AIR INDIA 1.03 AIR FRANCE-KLM 24.0 Pantaloon Retail 0.24 WAL-MART STORES 285.2

22

UTI LEADERSHIP EQUITY FUND

23

A FUND TO CAPITALISE ON GROWING ECONOMY

Secular underlying growth story of Indian Economy

Leaders performing well in future

Quality Portfolio at reasonable valuations

Global Competitiveness

24

SCHEME FEATURES

INVESTMENT OBJECTIVE: Long-term capital appreciation and/or dividend

distribution. Investing in stocks that are ‘Leaders’ in their respective

industries / sectors / sub-sectors.

The investments restricted to the top five leading companies of an industry / sector / sub-sector in terms of sales turnover / market share.

BENCHMARK INDEX : S & P CNX Nifty

ASSET ALLOCATION:

Invest in Leadership Fund from a Leader in Mutual Fund Industry

Instrument % of NetAssets

Equity of “leaders” 65 - 100%Equity of potential leaders 0 – 35%Debt and Money Market Instruments 0-10%

25

INVESTMENT STRATEGY

Stock Selection:

An industry or sector that the Fund Manager feels will

outperform others will be selected and then leading

companies within that industry / sectors will be picked.

Portfolio of the fund would be focussed

• Number of stocks around 25-30.

• To invest 75-80% in leaders and 20-25% in potential

leaders.

Single stroke to success is being with Leaders

26

SECTOR

FUND

SECTOR ROTATION FUND

UTI LEADERSHIP

FUND

DIVERSIFIED FUND

INDEX FUND

Risk

Leadership fund can give higher and sustainable return

Return

FUND POSITIONING

27

SCHEME DETAILS

Type of Scheme : Open Ended Diversified Equity Fund Options Available

• Growth Option• Dividend Option with Payout and Reinvestment facilities

Sale and Repurchase Price • During the NFO, the units of the fund will be sold at Rs. 10 subject

to Load applicable.• The Scheme will offer purchase and redemption of units at NAV

based prices on every business day on an ongoing basis, commencing from 28th February 2006.

Investment Amount • Minimum initial investment is Rs.5,000/-. Subsequent

minimum investment under a folio is Rs.1,000/- and in multiples of Re.1/- thereafter

Facilities Available : Systematic Investment Plan (SIP) and Automatic Trigger facilities

Be a Winner by investing in UTI Leadership Equity Fund

28

SCHEME DETAILS (Contd….)

Load Structure

NFO Opens On :9th January 2006

NFO Closes On : 30th January 2006

Be a Winner by Investing in UTI Leadership Equity Fund

Application Size Entry Load (% of NAV) Exit Load (% of NAV)

< Rs. 2 Crore 2.25% Nil

.=> Rs. 2 Crore Nil0.5% If Exited within 6

months from the date off investment.

29

RISK FACTORS

All investments in Mutual Funds and securities are subject to market risk and the NAV of the Funds may go up or down depending on the factors & forces affecting the securities market. Past performance of the Sponsor/Mutual Fund/ Scheme(s)/AMC is not necessarily indicative of the future results. UTI Leadership Equity Fund is just the name of the scheme and does not in any manner indicate the quality of the scheme, its future prospects or returns. The scheme is subjected to the risks relating to interest rate, liquidity, securities lending, investment in overseas market, trading in equity and debt derivatives. There may be instances where no income distribution could be made. Please read the Offer Document carefully and do consult your financial advisor before investing.

30

31

INDIA AMONGST THE FASTEST GROWING ECONOMIES

Growth has been accelerating in each decadeIndustry + services (78% of GDP) growing @ +8%Impact of agriculture on overall growth is steadily reducing Per capita income has grown by 7% CAGR over the past decade and is projected to cross $1,000 by the end of the decade

8.6

6.25.0 5.0 4.8 4.6 4.2

3.5 3.1 2.8

0

3

6

9

12

Chi

na

Indi

a

Mal

ay

Kor

ea

Sin

g

Taiw

an Phil

HK

Thai

Indo

10 year real GDP cagr (%)

46 39 31 25 22

16 2022 27 27

38 41 47 48 51

0

20

40

60

80

100

120

FY-71 FY-81 FY-91 FY-01 FY-04Agriculture Industry Services

Rapidly changing composition of GDP (%)

Source: Var Brokerge housess

32

INDIA GETTING YOUNGER AND RICHER

Explosive effect of rising Per capita Income: Currently at ~USD 750

Historically, at 1% growth, PCI doubled in a life time

At current 4% growth, PCI will reach ~USD 1000 in ~8 years

PCI of top 20% of population (>200mn people) is growing at 9% - doubling in 8 years

Young and richer India has huge implication in terms of multiplier effect on consumption and economic growth

0

4 0 0

8 0 0

1 , 2 0 0

2 0 0 1 2 0 1 6

0 to 1 4 y r s 1 5 to 5 9 y r s 6 0 y r s & ab o v e

T o ta l 1 , 0 2 7 m

T o ta l 1 , 2 6 8 mO v e r a l l g r o w th

2 3 %

S e g m e n t g r o w th 3 6 %

F a s t g r o w in g co n s u m e r c la s s

5 9 8 m

8 1 1 m

Source : planning commission of India

Increasing consuming group

33

ECONOMIC GROWTH LED BY CONSUMPTION

8 1 32 6

3 65 8

0

2 0

4 0

6 0

I n d i a T h a i l a n d M a l a y s i a T a i w a n K o r e a

( % )

4 9 1 3 1 7

3 7

0

2 0

4 0

6 0

I n d i a T h a i l a n d K o r e a M a l a y s i a T a i w a n

( % )

0 . 4 2 . 8 9 . 8

8 2 . 4

1 2 2

0

4 0

8 0

1 2 0

1 6 0

I n d i a T h a i l a n d M a l a y s i a T a i w a n K o r e a

( % )

4 81 6 1 7

4 1

0

2 0

4 0

6 0

I n d i a T h a i l a n d T a i w a n M a l a y s i a K o r e a

( % )

Indian economy is domestically driven economy (85% from dom. Mkt.) unlike emerging markets which are linked to export growth

Consumer loans/ GDPMortgages/ GDP

Credit cards/ GDP Other retail loans/ GDP

Source : RBI, Var brokerage house

34

CORPORATE INDIA GETTING HEALTHIER

Peak Rate of Custom Duty: Operating in a Competitive environment

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

19

93

19

95

19

97

19

99

20

01

20

03

20

05

( % )

Growing Profitability

0

1 0

2 0

3 0

4 0

5 0

1997

1998

1999

2000

2001

2002

2003

2004

2005

( % )

S a l e s P B I TEfficiently managed: Working Capital/ Sales

1 5

2 0

2 5

3 0

3 5

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

( % )Healthy balance sheets

0 . 0

0 . 4

0 . 8

1 . 2

1 . 6

2 . 0

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

( % )

D e b t/ E q u ity* P u b lic s e c to r P r iva te S e c to r

Source : CMIE

35

CAPEX IN A COMPETITIVE ENVIRONMENT

20,000

65,000

110,000

155,000

200,000

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

5.0

7.5

10.0

12.5

15.0

Investments in new projects (LHS) Interest Rates (RHS)

Key differences between the capex cycle of 1995-97 and the current one: Current capex in a competitive environment, duties down to WTO levels Interest rate differentials with regional economies have shrunk,

making India more competitive Current capex also aimed at servicing export markets given India’s

emerging competitiveness in manufacturing

1,500

2,250

3,000

3,750

4,500

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

0.0

10.0

20.0

30.0

40.0O/ s investments Steel Aluminium Copper

Duties (RHS)

Source: CMIE

36

INFRASTRUCTURE SPENDING ON ANVIL

0

500

1000

1500

2000

Road

s

Pow

er

Saga

rmal

a

Urb

an inf

ra

Pipel

ines

Railw

ays

Port

s

Airp

orts

SEZ

Wat

er

Rs bn

Infrastructure investments – the key driver to feed the imminent capex boom and drive industrial growth to double digit

37

REFLATION THEORY MAY WORK IN FUTURE

Low level of Local Investment

8 . 8 6 . 3 9 . 7 8 . 9 1 0 . 5 9 . 2

3 6 . 3 4 0 . 9

1 2 . 31 5 . 7 1 7 . 9 1 7 . 4

2 0 . 2

3 4 . 9 3 2 . 9 3 0 . 3 3 1 . 1 2 7 . 6 2 6 . 3

1 1 . 0

3 9 . 43 9 . 4 4 1 . 64 1 . 03 9 . 0

1 4 . 02 4 . 0

1 .10 .11 .72 .74 .17 .73 .0

3 4 . 0

0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5

C o n t ra c tu a l S a v in g s ( L I C , P ro v id e n t a n d P e n s io n F u n d s )I n v e s tm e n t i n S h a r e s a n d D e b e n tu r e sC la im s O n G o v e rn m e n tsD e p o s it sC u rre n c y

Ownership of equities

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

S e p - 0 3 S e p - 0 5P ro m o te rs G o v tF I I 's I n d ia n P u b licM F s + U T I + L I C

( U S D b n )

Ownership of equities

4 74 8

1 92 51 81 091 067

0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

S e p - 0 3 S e p - 0 5

P ro m o te rs G o v tF I I 's I n d ia n P u b licM F s + U T I + L I C

Source : Var Brokerage Houses

38

INDIA VALUATION - REASONABLE RELATIVE TO GROWTH

1 ,5 0 0

3 ,5 0 0

5 ,5 0 0

7 ,5 0 0

9 ,5 0 0

1 1 ,5 0 0De

c-95

Dec-

96

Dec-

97

Dec-

98

Dec-

99

Dec-

00

Dec-

01

Dec-

02

Dec-

03

Dec-

04

Dec-

05

1 6

1 4 x

1 2 x

P/E EPS EPS Growth (x) (INR) (%)

FY04 24.9 373 62.3FY05 20.4 456 22.1FY06E 16.6 562 23.4FY07E 14.0 668 18.8

14.0x FY07E of Rs.668

16.6x FY06E of Rs.562

Sensex 9300

Source :Bloomberg

39

USA (Dow Jones Industrial Index)

120

220

320

420

520

620

720

820

920Jan-4

8

Jan-5

0

Jan-5

2

Jan-5

4

Jan-5

6

Jan-5

8

Jan-6

0

Jan-6

2

Jan-6

4

Dow Jones performanceDow Jones performance

40

Japan (Nikkei)

0

5000

10000

15000

20000

25000

30000

35000

Jan-7

0

Jan-7

2

Jan-7

4

Jan-7

6

Jan-7

8

Jan-8

0

Jan-8

2

Jan-8

4

Jan-8

6

Jan-8

8

Nikkei performanceNikkei performance