Equity Market Overview · PDF file · 2016-01-28For SIP 1% of Exit (repurchase / switch ... Construction Project Consumer Non Durables Ferrous Metals Gas ... Punjab National Bank

2

Liquidity continued to be precious throughout the month of October, on the back of constrained Government spending post-advance tax, and average weekly Government borrowing of about Rs.11,000 crores. The situation aggravated in the last week of October on account of fund garnering for the Rs.15,000 crore Coal India IPO.

Throughout the month, short-term yields were bound northward and yield curve flattened substantially. Call rates were strained, and touched almost 13% intra-day on October 29, before RBI announced liquidity easing measures viz. a special 2-day Liquidity Adjustment Facility (LAF) on Saturday, October 30, and a second LAF on November 1-4.

WPI for September marginally increased to 8.62% from 8.50% in August. However, the weekly figures reported for primary articles and food articles have softened considerably to 16.62% and 13.75% for the week ended October 16 from 18.54% and 16.37% respectively, for the week ended October 2. Food inflation is expected to soften further as monsoon supplies hit the market. The only disrupting factor could be pulses, with sustained demand, strained domestic supplies and no global surplus for importing. Also, Government raised Minimum Support Prices (MSP) of 2 winter pulses by about 20%. Also, as the effects of past RBI rate hikes begin to set in, headline inflation is also expected to soften in the next few weeks.

IIP figures for August dipped significantly to 5.6% (YoY), much lower than the revised 15.2% (from 13.8%) for July. Mining, Manufacturing and Electricity sectors grew at 7%, 5.9% and 1% respectively. As per Use-based classification sectoral growth rates are 3.7% in Basic goods, -2.6% in Capital goods, 10% in Intermediate goods and 6.9% in Consumer goods (durables: 26.5% and non-

durables: -1.2%). The significant month-on-month volatility of IIP numbers is becoming a cause for concern as to their reliability.

U.S. 10 year note yields were volatile (oscillated between 2.59% and 2.75%; closed at 2.69% for the month) due to divergent views on the probability of quantitative easing by Fed, to be announced after the Federal Open Markets Committee (FOMC) meeting on November 3.

The HSBC India Manufacturing Purchasing Managers’ Index (PMI), a measure of the overall health of the manufacturing sector, bounced back to 57.2 in October from 55.1 in September. The increase was driven by acceleration on output growth and new orders, bolstered by strong domestic demand, but also accompanied by inflationary pressures.

The challenge before the RBI, in its November 2 policy, is to balance the ‘Impossible Trinity’ of interest rates, inflation and regulation of exchange rates. Reining in of inflation needs to be achieved without materially hurting growth, while also guarding against fickle external capital flows, the resulting volatile exchange rates and its impact on exports.

Short term yields may continue to remain under pressure, while G-sec yields may rise if RBI raises the policy rates, as widely expected. Cash withdrawals for the immiment festive season, and an 8,000 crore Government divestment of PowerGrid Corporation, in the second week of November, are expected to keep money-market participants on their toes.

Source : Bloomberg News, IDBI Asset Management Ltd. - Internal Research

Equity Market Overview

Fixed Income Overview

Some Key Events in October 2010 and their implications

Inflation check: After being on a softening trajectory for four months, the WPI inflation marginally rose to 8.62% in September, up from 8.5% in August. The primary articles inflation, which rose to 16.62% towards end of October from 18.31% in September, is the key reason behind the slight rise in WPI inflation. All major indices within primary category saw hardening of inflation in October. The key price pressure came mainly from fibers, flowers, vegetables and eggs. Pulses prices saw major easing of inflation in September.

Index of Industrial Production (IIP): The index of industrial production (IIP) grew 5.6% in August, considerably below expectations. Unpredictable sharp volatility in capital goods production is creating disconnect between market expectations and actual IIP data. Manufacturing sector, which is ~80% of the IIP, grew 5.9% in August, down from 16.7% in July. Mining and Electricity also saw slow growth in August, at 7% and 1% respectively.

Trade deficit narrows: India’s exports in September grew 23.2% to US$18bn. Import growth decelerated to 26.1%, narrowing the trade deficit to US$9bn in September 2010, the lowest deficit since November 2009. During April-September 2010, exports at US$104bn grew 28%, while imports at US$166bn rose 29.9%.

Policy rate outlook: Except July, IIP data since December 2009 indicates slowdown in the growth momentum. Also, headline inflation has started softening. These coupled with strong monetary tightening in India since February 2010 and

expectations of further quantitative easing in major industrialized countries are likely to nudge the RBI towards a pause in the December 2010 policy.

Market Summary

On 13th October, the Nifty index reached a 31 month high of 6,233 on the back of good GDP numbers and inflation remaining under check. However, there was a bit of profit booking by retail and institutional investors and the Nifty closed the month with a loss of around 2% at 6,017. We saw a lot of volatility in the market this month mainly caused by the Coal India IPO which is expected to be the largest IPO in India ever. On the sectoral front, BSE healthcare and BSE Oil & Gas were the major gainers up 5.3% and 3.3% respectively while BSE Realty down 6.2%, BSE Power down 5.5% and BSE Metal down 4.7% were the major losers.

Source : Bloomberg

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IDBI Nifty Index Fund(An open-ended passively managed equity scheme tracking the S&P CNX Nifty Index [Total Returns Index])

Scheme Performance as on 29/10/2010 (in %)Scheme Name 1 Month 3 Months Since Inception (25-Jun-2010)IDBI Nifty Index Fund (Growth) 0.27 10.82 14.14S&P Nifty Index - TRI 0.53 11.57 14.70Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Dividend HistoryDate Rate Cum Dividend NAV

(in `)Ex Dividend NAV

(in `)IDBI Nifty Index Fund - Dividend

15th Oct 2010 0.4000 11.5740 10.9628

1st Sept 2010 0.1200 10.2883 10.2886Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any.

Sector Classification

Fund FeaturesAverage AUM : ` 137.32 Crs.

Scheme FeaturesInvestment objective:The investment objective of the scheme is to invest only in and all the stocks comprising the S&P CNX Nifty Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the Scheme.

Benchmark:S&P CNX Nifty Index (Total Returns Index)

Fund Manager: Mr. Gautam Kaul

Inception Date: 25th June, 2010

NAV (as on 29th October 2010): Growth: ` 11.4141Dividend: ` 10.8851

Plans:

- Reinvestment - Payout

Asset Allocation Pattern:

InstrumentIndicative allocation

(% of total assets) Risk ProfileMin. Max.

Stocks in the S&P CNX Nifty Index and derivative instruments linked to the S&P CNX Nifty Index

95% 100% Medium to High

Cash and Money Market Instruments including money at call but excluding Subscription and Redemption Cash Flow

0% 5% Low to Medium

Application Amount:New Purchase – ` 5000/- and in multiples of ` 100/- thereafter

Min. Addl. Investment:` 1000/- and in multiples of ` 100/- thereafter

Load Structure:Entry Load: Nil. Exit Load:1% for exit (repurchase / switch-out / SWP), on or before 1 year from the date of allotment.For SIP1% of Exit (repurchase / switch-out), on or before 1 year from the date of allotment of each installment. Expense Ratio : 1.50%

SIP: Monthly Option:` 500 per month for a minimum period of 12 months or ` 1,000 per month for a minimum period of six months. Quarterly Option:` 1,500 per quarter for a minimum period of 4 quarters.

SWP:Minimum balance in the Scheme should be ̀ 25,000 at the time of enrollment for SWP. Minimum amount for each withdrawal should be ̀ 1,000 and in multiples of ` 1 thereafter for a minimum period of 6 months.

STP:Available

1.98%

6.75%

6.79%

4.22%1.25%3.13%3.05%

3.25%

10.97%

3.61%

4.15%

12.79%

2.90%

6.79% 0.70% 7.21%

20.59%

AutoBanksCementConstruction ProjectConsumer Non DurablesFerrous MetalsGasIndustrial Capital GoodsNon - Ferrous MetalsOilPetroleum ProductsPharmaceuticalsPowerSoftwareTelecom - ServicesFinanceMinerals/Mining

Security Name % To Net Assets

EQUITYACC Ltd. 0.56%Ambuja Cements Ltd. 0.64%Axis Bank Ltd. 2.10%Bajaj Auto Ltd. 1.21%Bharat Heavy Electricals Ltd. 2.18%Bharat Petroleum Ltd. 0.53%Bharti Airtel Ltd. 2.23%Cairn India Ltd. 0.77%Cipla Ltd. 1.00%DLF Ltd. 0.71%Dr. Reddy's Laboratories Ltd. 1.20%Gas Authority of India Ltd. 1.25%HCL Technologies Ltd. 0.53%HDFC Bank Ltd. 4.52%HDFC Ltd. 4.99%Hero Honda Motors Ltd. 1.00%Hindalco Industries Ltd. 1.55%Hindustan Unilever Ltd. 1.74%ICICI Bank Ltd. 7.51%Infosys Technologies Ltd. 8.06%Infrastucture Development Finance Co. Ltd. 1.29%ITC Ltd. 5.05%Jaiprakash Associates Ltd. 0.78%Jindal Steel & Power Ltd. 1.52%Kotak Mahindra Bank Ltd. 0.94%Larsen & Toubro Ltd. 6.04%


Mahindra & Mahindra Ltd. 1.76%Maruti Suzuki India Ltd. 1.16%NTPC Ltd. 1.40%Oil & Natural Gas Corpn Ltd. 2.48%Power Grid Corporation of India Ltd. 0.33%Punjab National Bank 0.96%Ranbaxy Laboratories Ltd. 0.50%Reliance Capital Ltd. 0.52%Reliance Communications Ltd. 0.67%Reliance Industries Ltd. 10.44%Reliance Infrastructure Ltd. 0.82%Reliance Power Ltd. 0.32%Sesa Goa Ltd. 0.70%Siemens Ltd. 0.70%State Bank of India 4.56%Steel Authority of India Ltd. 0.64%Sterlite Industries ( India ) Ltd. 1.50%Sun Pharmaceuticals Industries Ltd. 0.91%Suzlon Energy Ltd. 0.25%Tata Consultancy Services 3.00%Tata Motors Ltd. 2.09%Tata Power Company Ltd. 1.28%Tata Steel Ltd. 2.05%Wipro Ltd. 1.19%Equity Total 100.11%Cash Receivables -0.11%Total 100.00%

Portfolio as on 29/10/2010

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IDBI Nifty Junior Index Fund(An open-ended passively managed equity scheme tracking the CNX Nifty Junior Index (Total Returns Index)

Scheme Performance as on 29/10/2010 (in %)Scheme Name 1 Month Since Inception (20-Sept-2010)IDBI Nifty Junior Index (G)* 2.50 2.66CNX Nifty Junior-TRI 2.56 2.65*Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Fund FeaturesAverage AUM : ` 51.27 Crs.

Sector Classification

1.39%4.19%3.50%1.74%

2.65%

11.18%

3.79%

9.94%

5.43%

7.16%3.30%1.96%

21.71%

3.63%

4.82%

3.43%1.35%

7.55%

AutoCementConstruction ProjectConsumer Non DurablesFerrous MetalsFinanceHotelsIndustrial Capital GoodsIndustrial ProductsPesticidesPetroleum ProductsPharmaceuticalsPowerSoftwareTradingTransportationBanksFertilisers

Scheme FeaturesInvestment objective:The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of CNX Nifty Junior Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the CNX Nifty Junior Index as and when the derivative products on the same are made available. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the Scheme.

Benchmark:CNX Nifty Junior Index (Total Returns Index)


Inception Date: 20th September, 2010

NAV (as on 29th October 2010): Growth: ` 10.2664Dividend: ` 10.2664

Plans:

- Reinvestment - Payout




Stocks in the CNX Nifty Junior Index and derivative instruments linked to the CNX Nifty Junior Index as and when the derivative products are made available on the same

95% 100% Medium to High

Cash and Money Market Instruments including money at call but excluding Subscription and Redemption Cash Flow

0% 5% Low to Medium

Application Amount:New Purchase – ` 5000/- and in multiples of ` 100/-

Min. Addl. Investment:` 1000/- and in multiples of ` 100/-

Load Structure:Entry Load: Nil. Exit Load:1% for exit ( repurchase/switch-out/SWP/STP) on or before 1 year from the date of allotment.For SIP1% for exit(repurchase/switch-out/SWP/STP) on or before 1 year from the date of allotment of each installment.Expense Ratio : 1.50%

SIP: Monthly Option:` 500 per month for a minimum period of 12 months or ` 1,000 per month for a minimum period of six months. Quarterly Option:` 1,500 per quarter for a minimum period of 4 quarters.

SWP:Minimum balance in the Scheme should be ̀ 25,000 at the time of enrollment for SWP. Minimum amount for each withdrawal should be ̀ 1,000 and in multiples of ` 1 thereafter for a minimum period of 6 months.

STP:Available


EQUITYAdani Enterprises Ltd. 4.82%Aditya Birla Nuvo Ltd. 1.24%Andhra Bank Ltd. 1.15%Ashok Leyland Ltd. 1.35%Asian Paints Ltd. 3.53%Bank of Baroda 4.67%Bank of India 2.49%Bharat Electronics Ltd. 0.88%Bharat Forge Ltd. 1.39%Biocon Ltd. 0.84%Canara Bank 2.18%Colgate Palmolive (India) Ltd. 1.61%Container Corporation of India Ltd. 1.75%Corporation Bank 0.49%Crompton Greaves Ltd. 3.31%Cummins India Ltd. 2.11%Exide Industries Ltd. 1.95%Glaxosmithkline Pharmaceuticals Ltd. 2.58%Glenmark Pharmaceuticals Ltd. 1.29%GMR Infrastructure Ltd. 1.67%Grasim Industries Ltd. 4.19%Hindustan Petroleum Corporation Ltd. 2.20%Housing Development and Infrastruc-ture Ltd. 1.46%

IDBI Bank Ltd. 2.30%Indiabulls Real Estate Ltd. 1.64%Indian Overseas Bank 0.92%


Industrial Finance Corporation Ltd. 1.20%JSW Steel Ltd. 3.79%LIC Housing Finance Ltd. 2.22%Lupin Ltd. 2.84%Mangalore Refinery & Petrochemicals Ltd. 0.44%Mphasis Ltd. 1.17%Mundra Port and Special Economic Zone Ltd. 1.87%Oracle Financial Services Software Ltd. 1.00%Patni Computer Systems Ltd. 0.60%Power Finance Corporation 1.15%Punj Lloyd Ltd. 0.67%Rural Electrification Corporation 3.34%Shriram Transport Finance Company Ltd. 3.27%Syndicate Bank Ltd. 0.66%TATA Chemicals Ltd. 1.96%Tech Mahindra Ltd. 0.65%The Federal Bank Ltd. 2.21%The Indian Hotels Co. Ltd. 1.39%Torrent Power Ltd. 1.35%UltraTech Cement Ltd. 2.97%Union Bank of India 2.33%United Phosphorus Ltd. 1.74%United Spirits Ltd. 3.55%Yes Bank 2.30%Zee Learn Ltd. ** 0.00%Equity Total 98.71%Cash Receivables 1.29%Total 100.00%


** Shares acquired consequent to demerger of education business undertaking Zee Entertainment Enterprises Ltd.

5

Asset Profile

* For rating disclaimers, please refer to page 7

Rated ‘CARE AAAf ’ by CARE* Rated ‘AAAf ‘ by CRISIL*

YTM : 7.54%

Average Maturity : 36.33 days

Modified Duration : 36.33 days

Average AUM : ` 1772.58 Crs

IDBI Liquid Fund(An open-ended liquid scheme)

Scheme Performance as on 31/10/2010 (in %)Scheme Name 1 Week 2 Week 1 Month 3 Months Since Inception (9-July-2010)IDBI Liquid Fund (G) 7.17 7.00 6.75 6.14 6.15

Crisil Liquid Fund Index 6.60 6.45 6.19 5.89 5.79

Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Dividend HistoryDate Rate Cum Dividend NAV

(in `)Ex Dividend NAV

(in `)IDBI Liquid Fund - Weekly Dividend31st Oct 2010 0.0109 10.0097 10.000024th Oct 2010 0.0103 10.0093 10.000017th Oct 2010 0.0096 10.0089 10.000010th Oct 2010 0.0097 10.0089 10.00003rd Oct 2010 0.0099 10.0090 10.000026th Sept 2010 0.0090 10.0084 10.000019th Sept 2010 0.0089 10.0080 10.000012th Sept 2010 0.0081 10.0058 10.00005th Sept 2010 0.0084 10.0077 10.0000IDBI Liquid Fund - Monthly Dividend25th Oct 2010 0.0399 10.0490 10.000027th Sept 2010 0.0402 10.0496 10.0000

Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any.

Scheme FeaturesInvestment objective:The investment objective of the Scheme will be to provide investors with high level of liquidity along with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a low risk portfolio of money market and debt instruments.

Benchmark:CRISIL Liquid Fund Index


Inception Date: 9th July, 2010

NAV (as on 31st October 2010): Growth `10.1921Daily Dividend `10.0000Weekly Dividend `10.0000Monthly Dividend `10.0119

Plans:

- Daily Dividend- Weekly Dividend- Monthly Dividend




Money market instruments with maturity/residual maturity up to 91 days

50% 100% Low

Debt instruments (including floating rate debt instruments and securitized debt)* with maturity/residual maturity/ interest rate resets up to 91 days

0% 50% Low to Medium

* Investment is securitized debt not to exceed 50% of the net assets of the Scheme. Investment in Derivatives will be up to 50% of the net assets of the Scheme. The Scheme does not propose to invest in foreign securities.



Load Structure:Entry Load: Not ApplicableExit Load : NilExpense Ratio : 0.40%

SIP: Monthly Option:` 500 per month for a minimum Period of 12 months or ` 1,000 per month for a minimum period of 6 months Quarterly Option:` 1,500 per quarter for a minimum period of 4 quarters with additional investment thereafter..

SWP:Minimum balance in the Scheme should be ` 25,000 at the time of enrollment for SWP. Minimum amount for each withdrawal should be ` 1,000 and in multiples of ̀ 1 thereafter for a minimum period of 6 months.

STP:Available

Security Name Rating % To Net

AssetsCERTIFICATES OF DEPOSITCentral Bank of India PR1+ 16.03%Corporation Bank P1+ 8.72%UCO Bank P1+ 5.82%Punjab National Bank PR1+ 4.36%Andhra Bank Ltd. PR1+ 4.08%Oriental Bank of Commerce P1+ 2.93%Allahabad Bank Ltd. A1+ 2.91%Bank of Baroda A1+ 2.90%Canara Bank P1+ 2.05%Canara Bank A1+ 1.46%Syndicate Bank Ltd. P1+ 1.46%The South Indian Bank Ltd. PR1+ 1.45%State Bank of India P1+ 1.45%COMMERCIAL PAPERSKotak Mahindra Prime Ltd. P1+ 4.66%India Infoline Ltd. A1+ 4.51%Tata Capital Ltd. A1+ 4.39%ECL Finance Ltd. P1+ 4.39%


AssetsReliance Capital Ltd. A1+ 4.35%Srei Infrastructure Finance Ltd. PR1+ 2.93%Tata Motors Finance A1+ 2.93%Bharat Petroleum Ltd. P1+ 2.91%Enam Finance Pvt. Ltd. A1+ 1.47%Aditya Birla Finance Ltd. A1+ 1.46%Indian Oil Corporation Ltd. P1+ 1.45%United Phosphorus Ltd. PR1+ 1.45%Utkal Alumina International Ltd. PR1+ 1.45%Godrej & Boyce Mfg Co. Ltd. P1+ 1.45%Edelweiss Capital Ltd. P1+ 1.45%Infrastucture Development Finance Co.Ltd. A1+ 1.45%

JM Financial Products Pvt Ltd. P1+ 0.88%DEBT INSTRUMENTS - BONDS/DEBENTURESIDBI Bank Ltd. AA+ 0.07%Cash "n" Call Assets & Receivables 0.72%TOTAL 100.00%


Cash & Cash Equivalent0.72%

A1+/P1+/PR1+99.28%

6

IDBI Ultra Short Term Fund(An open-ended debt scheme)

Scheme Performance as on 29/10/2010 (in %)Scheme Name 1 Week 2 Week 1 Month Since Inception (3-Sept-2010)IDBI Ultra Short Term Fund (G) 7.34 7.14 7.01 6.94

Crisil Liquid Fund Index 6.38 6.34 6.12 6.01

Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Dividend History

Date Individual Dividend(in `)

Institutional Dividend

(in `)

Cum DividendNAV (in `)

Ex DividendNAV (in `)

IDBI Ultra Short Term Fund - Weekly Dividend

26th Oct 2010 0.0124 0.0115 10.0120 10.0000

19th Oct 2010 0.0113 0.0106 10.0110 10.0000

12th Oct 2010 0.0117 0.0109 10.0114 10.0000

5th Oct 2010 0.0114 0.0106 10.0112 10.0000

28th Sept 2010 0.0114 0.0106 10.0112 10.0000

21st Sept 2010 0.0110 0.0102 10.0107 10.0000

14th Sept 2010 0.0109 0.0102 10.0106 10.0000

7th Sept 2010 0.0076 0.0071 10.0069 10.0000

IDBI Ultra Short Term Fund - Monthly Dividend

26th Oct 2010 0.0471 0.0439 10.0516 10.0000

28th Sept 2010 0.0410 0.0382 10.0448 10.0000

Past performance may or may not be sustained in the future. After the payment of dividend, the per unit NAV falls to the extent of the dividend payout and distribution taxes, if any.

Scheme FeaturesInvestment objective:The objective of the Scheme will be to provide investors with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a diversified portfolio of money market and debt instruments with maturity predominantly between a liquid fund and a short term fund while maintaining a portfolio risk profile similar to a liquid fund.

Benchmark:CRISIL Liquid Fund Index


Inception Date: 3rd September, 2010

NAV (as on 29th October 2010): Growth `10.1065Daily Dividend `10.0000Weekly Dividend `10.0059Monthly Dividend `10.0060

Plans:

- Daily Dividend- Weekly Dividend- Monthly Dividend



(% of total assets)Risk

ProfileMin. Max.Money market instruments/debt instruments (including floating rate debt instruments and securitized debt*) with maturity/residual maturity up to 1 year (or 365 days)

80% 100% Low to Medium

Debt instruments (including floating rate debt instruments and securitized debt*) with duration/maturity/residual maturity above 1 year

0% 20% Medium

It is the intent of the Scheme to maintain the average maturity of the portfolio within a range of 30 days to 120 days under normal market conditions depending on the fund manager’s assessment of various parameters including interest rate environment, liquidity and macro-economic factors. However, the maturity profile of the scheme can undergo a change in case the market conditions warrant and at the discretion of the fund manager.*Investment in Securitized Debt not to exceed 50% of the net assets of the Scheme.



Load Structure:Entry Load: Not ApplicableExit Load : 0.25% for exit within 7 days from date of allotmentExpense Ratio : 0.50%

SIP: Monthly Option:` 500 per month for a minimum Period of 12 months or ` 1,000 per month for a minimum period of 6 months Quarterly Option:` 1,500 per quarter for a minimum period of 4 quarters .

SWP:Minimum balance in the Scheme should be ` 25,000 at the time of enrollment for SWP. Minimum amount for each withdrawal should be` 1,000 and in multiples of ̀ 1 thereafter for a minimum period of 6 months.

STP:Available

* For rating disclaimers, please refer to page 7

Rated ‘CARE AAAf ’ by CARE* Rated ‘AAAf ‘ by CRISIL*


AssetsCERTIFICATES OF DEPOSITPunjab National Bank PR1+ 14.35%Allahabad Bank A1+ 14.32%Union Bank of India A1+ 9.55%ING Vysya Bank Ltd. P1+ 9.51%Canara Bank CD P1+ 7.65%Andhra Bank CD PR1+ 4.77%COMMERCIAL PAPERSEdelweiss Capital Ltd. P1+ 9.60%Reliance Capital A1+ 4.80%


AssetsAditya Birla Finance Ltd. A1+ 4.79%United Phosphorus Ltd. PR1+ 4.77%Usha Martin Ltd. PR1+ 4.77%JM Financial Products Pvt. Ltd. P1+ 4.76%India Infoline Ltd. A1+ 4.42%Small Industrial Dev Bank of India Ltd. PR1+ 1.93%

Cash "n" Call Assets & Receivables 0.02%

TOTAL 100.00%


Asset Profile

Cash & Cash Equivalent0.02%

A1+/P1+/PR1+99.98%

YTM : 7.64%

Average Maturity : 44.64 days

Modified Duration : 44.64 days

Average AUM : ` 467.29 Crs*

* As on 31st October, 2010

7

Statutory Details : IDBI Mutual Fund has been set up as a trust sponsored by IDBI Bank Ltd. (liability restricted to `10 lakhs) with IDBI MF Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with IDBI Asset Management Ltd. as the Investment Manager. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of the Scheme will be achieved. The NAV of the units issued under Scheme may go up or down depending upon the factors and forces affecting the securities markets. The names of the Schemes do not in any manner indicate either the quality of the Schemes, their future prospects and returns. Please read the Scheme Information Documents (SID) and Statement of Additional Information (SAI) carefully before investing. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of capital. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of ̀ 10 lakhs made by it towards setting up the Fund. Please refer to the ‘important note’ in SID for disclaimers of S&P and IISL with respect to the usage of Index products. For further information please contact: IDBI Asset Management Ltd., IDBI Building, 2nd Floor, Plot No. 39-41, Sector-11, CBD Belapur, Navi Mumbai-400 614.

The products on CNX Nifty Junior Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the products linked to CNX Nifty Junior Index or particularly in the ability of the CNX Nifty Junior Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Nifty Junior Index in the Scheme Information Document.

CARE’s fund credit quality rating is not a recommendation to purchase, sell, or hold a security / fund. It neither comments on the current market price, suitability for a particular investor nor on the prospective performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The ratings do not address the funds ability to meet the payment obligations to the investors. The ratings are based on current information furnished to CARE by the issuer or obtained by CARE from sources it considers reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CARE does not perform an audit in connection with any rating and may, on occasion, rely on unaudited information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Funds rated by CARE have paid a rating fee. CRISIL: The assigned rating AAAf is valid for “IDBI Liquid Fund” and “IDBI Ultra Short Term Fund”. The rating of CRISIL is not an opinion of the Asset Management Company’s willingness or ability to make timely payments to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments.

Our BranchesAhmedabad : IDBI Mutual Fund, IDBI Complex, 1st Floor, Near Lal Bunglow, Off CG Road, Ahmedabad - 380 006.

Bangalore : IDBI Mutual Fund, IDBI House, 3rd Floor, IDBI Mutual Fund No. 58, Mission Road, Bangalore - 560 027.

Chandigarh : IDBI Mutual Fund, IDBI Bank Ltd., 3rd Floor, SCO 72/73, Bank Square, Sector - 17B, Chandigarh - 160 016.

Chennai : IDBI Mutual Fund, Ground Floor, Lancor Westminster Building, Old No. 108, New No. 70, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004.

Delhi : IDBI Mutual Fund, IDBI Bank, 5th Floor, Red Cross Building, Red Cross Road, Parliament Street New Delhi - 110 001.

Hyderabad : IDBI Mutual Fund, 3rd Floor, 5-9-89/1, Chapel Road, Hyderabad - 500 001.

Indore : IDBI Mutual Fund, IDBI Bank Ltd., Ground Floor, Alankar Chambers, Ratlam Kothi, Indore - 452 001.

Kochi : IDBI Mutual Fund, IDBI Bank, Corporate Office, Near Passport Office, Panampally Nagar, Kochi - 680 366.

Kolkatta : IDBI Mutual Fund, IDBI House, 6th floor, 44, Shakespeare Sarani, Kolkata - 700 017.

Lucknow : IDBI Mutual Fund, IDBI Bank, 2 M G Marg, Kisan Sekhari Bhawan, Hazratganj, Lucknow - 226 001.

Pune : IDBI Mutual Fund, IDBI House, 4th Floor, Dnayaneshwar, Paduka Chowk, S C Road, Shivaji Nagar, Pune - 411 004.

Contact us

Corporate OfficeIDBI Asset Management Limited

2nd Floor, IDBI Building, Plot No.39-41, Sector-11, CBD Belapur, Navi Mumbai – 400614.

Phone: 022-66096100 Fax: 022-66096110 e-mail: [email protected] website: www.idbimutual.co.in

SMS: IDBIMF on 09220092200 Tollfree: 1800-22-4324 (between 9 a.m. – 6 p.m. from Monday to Friday)