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Inflation-indexed bonds provide superior 'real' returnsMost retail investors look for a guarantee of the principal and returns when investing in any financial instrument. This is the primary reason

why a bank fixed deposit (FD) is the preferred investment avenue for most Indian investors. However, investors fail to gauge the 'real rateof return' from such investments. The real rate of return adjusts total returns with the prevalent rate of inflation. Suppose a one-year fixed

deposit offers an interest rate of 8% and the prevailing inflation rate is 7%, then the real return on the deposit would be 1% (8%-7%)

Hence, investors need to choose financial products where the total return is much higher than the inflation rate so as to maximise wealth in

'real' terms.

nflation Indexed Bonds (IIBs) issued by the Reserve Bank of India (RBI) since June 2013 offer a coupon which is over and above the Wholesale Price Index (WPI

ased inflation rate. Unlike regular bonds, IIBs offer protection to both the principal and the interest rate against inflation. The principal is adjusted by multiplying it with

n inflation component or index ratio. The index ratio (IR) is defined as the ratio of WPI on the settlement date to the WPI on the issue date. The interest income too

would rise with inflation as the coupon would be applied on the adjusted principal. For example, say a bond is issued with the principal value of Rs 1,000 and real coupon

ate of 3% p.a. When the inflation increases to 10%, then the principal amount after adjusting for inflation (10%) will be Rs 1,100 and interest paid on the inflation

djusted principal (Rs 1,100) will be Rs 33 (3% of Rs 1100). Hence effective interest income would be 10% more than the original interest amount (3% of Rs.1000)

CRISIL's analysis indicates that IIBs not only offer a good hedge against inflation but also provide superior post-tax returns compared to other debt products during

mes of high inflation.

Investmentthoughts

Monthly funds newsletter from CRISIL Research

CRISIL FUND INSIGHTS

Volume - 29 September 2013

Bs vs. other fixed income instruments

IIBs- the clear winner

Summing up

To figure out how IIBs compare with traditional fixed income instruments, CRISIL analysed the returns on IIBs, assuming they were issued on April 30, 2003 (10 year

go) at an auction coupon rate of 1.44% (equivalent to the coupon of IIBs issued on June 4, 2013) and 10-year maturity. These were compared to other fixed incom

roducts such as FDs, corporate bonds and government securities (G-Sec) during the same period. The analysis clearly indicates that IIBs provide higher post ta

eturns vis--vis other traditional fixed income instruments (Refer to Table 1).

Average returns from the typical 1-year bank FDs have consistently risen from 5.88% as on April, 2003, to 9.04% as on April, 2013. Assuming one had invested Rs 100 i

n FD at the said rate on April 30, 2003, and ploughed back the capital every year in the 1-year FD at the prevailing interest rate, the total income on Rs 100 investmen

ver the 10-year period would be approximately Rs 168 (pre-tax), clocking a simple average return of 6.8% per year. Taking into consideration the three tax brackets

nvestors would have received total post-tax returns of Rs 147 (30% tax bracket), Rs 154 (20%) and Rs 161 (10%), respectively.

Similarly, an investment of Rs 100 in a 10-year 'AAA' rated corporate bond with a fixed yield of 7.19% in 2003 would have resulted in total returns of about Rs 172 (pre

ax) with investors in the three tax brackets of 30%, 20% and 10% receiving post-tax returns of Rs 150, Rs 157 and Rs 164, respectively at the end of the tenor. In case a

nvestor had put Rs 100 into a 10-year G-Sec paper with a yield of 6.17%, the investment would have appreciated by 62% and grown to a pre-tax amount of Rs 162.

In comparison with the above fixed income instruments, an investment of Rs 100 i

IIBs in 2003 would have doubled to a pre-tax amount of Rs 209 by 2013. This can b

attributed to the spike in WPI inflation index which nearly doubled from 167.80 in

April 2003 to 316.16 in April 2013.

On maturity of the investment, the investor will receive the inflation-adjusted

principal amount which factors in cumulative inflation for the full tenor of the

investment. This amount will be larger compared to the nominal principal repaid b

a bond or a bank FD. The absolute coupon cash flow on IIBs is lower in compariso

with regular bonds, but the principal repayment is higher as it is adjusted fo

cumulative inflation.

While investors may shy away from an instrument (IIBs) which offers lower coupon income, it actually helps investors gain from the lower tax deduction on the interes

arned on IIBs. Hence, IIBs are best suited for those investors who are looking for inflation protection over a longer time horizon and who are not in need of higher cas

ows. For instance, a 30% tax on 8% interest earned on a general bond will be 2.4%. This is almost six times compared to the 0.43% tax an investor has to pay o

nterest earned on IIBs at a real coupon rate of 1.44%. The actual tax paid would be marginally higher due to higher coupons received on the inflation adjusted principa

Further, investors benefit from indexation benefits which are applicable on long term capital gains from such bonds. Long-term capital gains attract 20% tax with

ndexation benefit. Consistently high inflation has pushed up the capital gains index which may lead to investors paying marginal or no tax on capital gains.

nflation Indexed Bonds are a good investment avenue for investors who are not in need of higher cash flows but keen to protect their investment from inflation -

specially in a country like India which is prone to sharp rise in prices - as these bonds benefit from rising inflation. Further, the new RBI Governor Mr Raghuram Raja

as hinted at linking IIBs to the consumer price index (CPI) based inflation rate which is higher than the WPI-based inflation rate. Currently, institutional investors majorl

ubscribe to IIBs. However, the central bank has proposed to sell IIBs through banks and post offices so as to promote higher retail participation, which is good news

or investors.

nvestment Product Pre tax 10% tax 20% tax 30% tax

Fixed Deposit* (Rs) 167.97 160.97 153.97 146.96

10-year Government Bond^(Rs) 161.72 155.37 149.01 142.65

10-year AAA Bond@(Rs) 171.90 164.49 157.09 149.68

nflation Indexed Bond (Rs) 208.60 206.52 204.44 202.36

1-year FD rolled over at the prevailing FD ratesInvested as per the prevailing yield of 6.17% of 10-year G-sec paper in April 2003

@ Invested as per the prevailing yield of 7.19% of a 10-year AAA corporate bond in April 2003or all calculations, only capital is ploughed back every year

Table 1Growth of Rs 100 since 2003

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-120000

-72000

-24000

24000

72000

120000

6.8

7.2

7.6

8.0

8.4

8.81. Banks

2. Computers - Software

3. Pharmaceuticals

4. Ref ineries/Market ing

5. Cigarettes

6. Housing F inance

7. Telecom - Services

8. Oil Exploration

9. Engineering

10. Cement

l Domestic equity markets fell for the third consecutive month in August, with the benchmark index CNX Niftydeclining 4.71% during the month.

l The fall in the index was attributed to the weakness in the rupee, slower economic growth and fears that theFood Security Bill would exert more pressure on the fiscal deficit.

l The domestic currency fell by 9% to end the month at Rs 65.70 per US dollar (after touching a low of Rs 68.80in the month) while the economy expanded at 4.4% in the April-June 2013 quarter (the third consecutivequarter of below 5% growth). The Food Security Bill is expected to cost Rs 1.25 lakh cr.

l Persistent selling by Foreign Institutional Investors (FIIs) on worries of an early rollback of the US monetarystimulus coupled with domestic economic challenges also dragged down the markets. FIIs sold equitiesworth Rs 6,200 cr in August compared to net selling of Rs 5,909 cr in the previous month.

l Losses were capped due to some recovery in the rupee after the RBI opened a special forex swap window forthree public sector oil marketing companies to meet the daily dollar requirements.

l Further, minutes from the US Federal Reserve meeting which showed that almost all of i ts members agreedthat a change to its stimulus measures is not yet appropriate, helped boost sentiment.

l Majority of the sectoral indices ended lower in August except for CNX Metal and CNX IT index.

l CNX Metal index rose 11.30% on hopes of rising demand from China on strong manufacturing numbers.

l CNX IT index gained 7.64% on a weaker rupee which aided the export-driven sector.

l Among the losing indices, CNX Realty index fell 10.74% due to low booking levels and concerns that the LandAcquisition Bill will increase cost of land acquisition.

Indices August

30, 2013

July

31, 2013

Absolute

Change

%

Change

Indicators July 31, 2013

10 Yr Gsec 8.17%8.60%

Monthly WPI Inflation 6.10% (August 2013) 5.79% (July 2013)

Mutual Fund Overview

l The Indian mutual fund industry's month-end assets under management (AUM)

rose to Rs 7.66 lakh cr in August and posted a subdued month-on-month growth of0.7% or Rs 5,270 cr.

l The rise in AUM was mainly due to total net inflows of Rs 23,713 cr with liquid /money market funds garnering the largest share of inflows.

l Liquid funds' AUM rose by 16% to Rs 1.50 lakh cr due to inflows of Rs 32,123 cr ledby by RBI's measures to reduce the liquidity pressure in the banking system.

l Income funds' (including ultra short term debt funds) AUM fell by 2.66% or Rs11,467 cr to Rs 4.20 lakh cr led by outflows of Rs 9,274 cr during the month. Thiswas the third consecutive month of outflows from the category and was the largestmonthly outflow since December 2012. Outflow was mainly due to recent volatilityin the debt market following monetary-tightening measures by the central bank.

l Gilt funds' AUM rose 8.4% to Rs 8,890 cr in August after reporting a fall in assets inthe previous three months. The gain in assets was due to inflows of Rs 908 cr in thecategory which also witnessed mark-to-market (MTM) losses following rise inbond yields. Market participants' interest in government bonds revived after theRBI announced steps to ease long-end bond yields.

l The recent rise in bond yields made fixed maturity plans (FMPs) attractive asthese help to lock high yields. Of the 127 new fund offers (NFOs) during the month,

August 30, 2013

1. Infosys Ltd.

2. Reliance Industries Ltd.

3. ITC Ltd.

4. HDFC Bank Ltd.

5. ICICI Bank Ltd.

6. TCS Ltd.

7. HDFC Ltd.

8. Larsen & Toubro Ltd.

9 . Bhar ti Ai rtel Ltd.

10. State Bank Of India.

Top Stock Exposures - August 2013 Top Sector Exposures - August 2013

New Stocks Entries and Exits in Mutual Fund Portfolios - August 2013

Entries

Ashok Leyland Finance Ltd.

Gujarat NRE Coke Ltd.

Selan Exploration Technology Ltd.

Exits

Binani Industries Ltd.

Crescent Finstock Ltd.

ISMT Ltd.

Jayaswal Neco Industries Ltd.

JHS Svendgaard Laboratories Ltd.

Jubilant Industries Ltd.

Mahindra Forgings Ltd.

Marg Ltd.

Plastiblends India Ltd.

Precision Fasteners Ltd.

SPML Infra Ltd.

Sujana Towers Ltd.

Suryalakshmi Cotton Mills Ltd.

Note:- The month-end portfolios as of August 2013 have been considered for the report.

Market - Overview

CNX Nifty 5472 5742 -270 -4.71

S&P BSE Sensex 18620 19346 -726 -3.75

RISIL AMFI Large Cap Fund Performance Index -4.04 -2.23

RISIL AMFI Diversified Equity Fund Performance Index -3.47 -3.91

RISIL AMFI Small & Midcap Fund Performance Index -3.91 -4.10

RISIL AMFI ELSS Fund Performance Index -3.77 -2.98

RISIL AMFI Balance Fund Performance Index -3.14 -4.33

RISIL AMFI MIP Fund Performance Index -1.66 -3.53

RISIL AMFI Gilt Fund Performance Index -2.30 -4.89

RISIL AMFI Debt Fund Performance Index -0.74 -2.66

RISIL AMFI Short Term Debt Fund Performance Index -0.03 -1.79

RISIL AMFI Ultra Short Fund Performance Index 0.68 0.05

RISIL AMFI Liquid Fund Performance Index 0.87 0.52

old Funds (ETFs and FoFs) 13.72 12.09

Absolute Monthly Returns%Category returns Aug 2013 Jul 2013

122 were FMPs compared with 37 new launches in the previous month.

l Equity mutual funds too saw inflows of Rs 458 cr in the month versus outflows oRs 1,827 cr in the previous month. The category elicited interest due to valuebuying after the recent equity market correction. Equity funds' assets continued tofall due to MTM losses and fell by 3.5% or Rs 5,705 cr to Rs 1.57 lakh cr.

l Gold ETFs' AUM increased 11% (a similar percentage gain as last month) to R11,828 cr in August, led by MTM gain as the underlying asset prices, representedby the CRISIL Gold Index, rose 17% during the month tracking positive globatrends and the fall in the rupee.

l On the regulatory front, SEBI allowed asset management companies (AMCs) totake membership of stock exchanges, enabling them to directly trade on the debplatforms of the bourses.

l SEBI wrote to AMFI to bring uniformity in the existing colour-coding scheme.

l AMFI sought relaxation of portfolio concentration norms for fixed maturity plans.

l AMFI stated that AMCs will be responsible for the compliance of overseadistributors in the absence of an AMFI registration.

l AMFI launched a 'district adoption programme', under which 200 districts will badopted in the first phase by 31 fund houses as part of its initiative to createawareness among investors.

CRISIL FUNDINSIGHTS

Aug-13

Jul-13

Jun-13

May-13

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

(NetFlowsRscr)

(AUMRslakhcr)

Net flows (Rs cr) Industry AUM (Rs lakh cr)

l LIC Nomura MF launched an auto premium payment system in collaboration with LIC to enable its mutual fund investors to pay their

insurance premium.l IDBI Mutual Fund got SEBI's approval for its advisory business.Fund News

Taj GVK Hotels

Tantia Constructions Ltd.

Tide Water Oil Co. (India) Ltd.

Transtream India.com Ltd

Volant Textile Mills Ltd.

Western Paques (India) Ltd.

7/27/2019 Fund Insights September 2013

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0

5

15

1 Year 3 Years 5 Years

CRISIL BalanceEX

ICICI Prudential Equity - VAF

8.30

10.63

3.55

7.99

7.22

10.91

CNX Nifty 9.94 1.49 6.03

Balanced Funds 2.87 0.42 9.50

Returns(%)

Chart 1: Performance as on September 10, 2013

Fund focus

Investment Approach

Performance

ICICI Prudential Equity - Volatility Advantage Fund

(CRISIL Fund Rank 2)ICICI Prudential Equity - Volatility Advantage Fund was launched o

December 30, 2006; it is an equity-oriented hybrid fund with

average assets under management (AUM) of Rs 252 cr as of June

2013. The fund was earlier known as ICICI Prudential Equity andDerivatives Fund - Volatility Advantage Plan. The fund is ranked

CRISIL Fund Rank 2 as of June 2013 (top 30 percentile of the

CRISIL Mutual Fund Rankings) under the balanced funds category

it has been in the top 30 percentile since June 2012.

The fund aims to invest 65% to 80% of its corpus in equities and

equity-related securities, and the remaining in debt and mone

market instruments. For tax purposes, balanced funds (with a

greater than 65% equity holding) are treated like equity-oriented

funds wherein dividends and long-term capital gains are tax free.

As on September 10, 2013, the fund has outperformed it

benchmark (CRISIL BalanceEX) across various time frame

analysed (Chart 1) and has outperformed the category and equit

benchmark CNX Nifty index over the one, three and five-yeaperiods. Further, the fund's volatility (as measured by standard

deviation) is the lowest among peers at 11.8% for the three-yea

period ended September 10, 2013, versus 14% of the category.

verage Assets under Management - A Bird's Eye View

IDBI Mutual Fund 5489 6249 -760 -12.16

Principal Mutual Fund 4848 5573 -725 -13.01

Peerless Mutual Fund 4538 4875 -336 -6.90

Taurus Mutual Fund 4464 4731 -267 -5.65

Goldman Sachs Mutual Fund 4309 4800 -490 -10.22

BNP Paribas Mutual Fund 3841 3726 115 3.08

Indiabulls Mutual Fund 3219 2639 580 21.97

Morgan Stanley Mutual Fund 3022 2660 361 13.59

Pramerica Mutual Fund 2544 2592 -48 -1.86

Union KBC Mutual Fund 2477 3118 -641 -20.55

PineBridge Mutual Fund 1206 1099 107 9.75

ING Mutual Fund 891 993 -102 -10.26

BOI AXA Mutual Fund 866 1104 -238 -21.54

Mirae Asset Mutual Fund 524 540 -16 -3.00

Motilal Oswal Mutual Fund 491 539 -47 -8.76

Quantum Mutual Fund 292 280 12 4.22

Escorts Mutual Fund 268 255 13 5.01

Sahara Mutual Fund 244 254 -10 -3.76

Edelweiss Mutual Fund 239 259 -20 -7.62

IIFL Mutual Fund 214 210 5 2.18

Daiwa Mutual Fund 131 266 -135 -50.64

PPFAS Mutual Fund 114 NA NA NA

Grand Total 846677 816657 30019 3.68

Mutual Fund 104977 101720 3257 3.20

ce Mutual Fund 97771 94580 3191 3.37

Prudential Mutual Fund 91695 87835 3860 4.39

un Life Mutual Fund 79761 77046 2714 3.52

utual Fund 74707 69450 5256 7.57

utual Fund 59163 54905 4258 7.75

n Templeton Mutual Fund 41722 41564 158 0.38

Mutual Fund 38938 32886 6052 18.40

Mahindra Mutual Fund 37203 35361 1842 5.21

lackRock Mutual Fund 33041 32342 699 2.16

utual Fund 20883 19897 986 4.95

che Mutual Fund 18563 18114 449 2.48

ram Mutual Fund 15459 14871 588 3.95

gan Mutual Fund 14883 15856 -972 -6.13

re Invesco Mutual Fund 13811 14202 -391 -2.75

utual Fund 13781 11169 2612 23.39

utual Fund 12289 12114 175 1.44

a Robeco Mutual Fund 7193 8851 -1658 -18.73

a Pioneer Mutual Fund 7140 7303 -163 -2.23

omura Mutual Fund 6818 7185 -367 -5.10

ancial Mutual Fund 6755 7411 -656 -8.86

Mutual Fund 5891 5230 661 12.63

Fund Name

Apr-Jun2013

Apr-Jun2013

Jan-Mar2013

Jan-Mar2013Change

(Rs.Crore)%

Change Mutual Fund Name(Rs.Crore) (Rs.Crore)Change

(Rs.Crore)%

Change(Rs.Crore) (Rs.Crore)

Portfolio Analysis

Fund Managers

Over the past three years, the fund has maintained its average

equity exposure at 70%, debt exposure at 13% and the rest in cas

and cash equivalents.

Over the past three years as of August 2013, compared to the equit

benchmark CNX Nifty, the fund has been overweight i

pharmaceuticals; during the same period, the representative inde

for the sector, CNX Pharma, gave annualised returns of 19.2%

against 0.3% annualised returns by CNX Nifty. A higher allocation topharmaceuticals thus benefited the fund.

During the same period, on the debt side, the fund maintained a

average 14% exposure to NCD and bonds; it has invested in gilt

only in the past two months. On the asset quality parameter, the

fund maintained an average 98% exposure of its debt portfolio to

highest rated papers (AAA/A1+) over the past three years.

Mr. Manish Gunwani, fund manager of the equity portion, is a

B.Tech. and PGDM and has overall 16 years of experience; Mr

Manish Banthia, who oversees the debt portion, is a B.Com, ACA

and MBA and has five years of experience in fixed income dealing

& research, new product development and corporate finance.

Every month, Fund Focus will feature one of the

CRISIL Mutual Fund Rank 1 or 2 Schemes

AAUM is the quarterly average number and excludes Fund of Funds

Data sorted on latest average AUM numbers

RISIL Fund Rank 1 Schemes - Hybrid

ed

rudential Balanced Fund -2.77 -7.50 -3.62 6.82 6.51 12.76 3-Nov-99 501.94 12.95 0.19

ggressive

ce Monthly Income Plan -1.54 -6.95 -2.03 3.03 5.28 9.79 13-Jan-04 3382.32 5.33 -0.03

onservative

un Life MIP II - Savings 5 Plan -1.01 -4.81 -0.11 4.61 7.01 8.20 22-May-04 286.27 3.52 0.64

me Name1

Month3

Month6

Months1

Years

SinceInception

InceptionDate

Point to Point Returns %Average

AUM(Rs.Crore)

3Years

Mutual Funds' Performance Report

StyleBox

Std.Deviation

(%)SharpeRatio

tyle Box Legend for Balanced Schemes) (Style Box Legend for MIP Aggressive and Conservative Schemes)

arge cap

mall & Midcap

Value Blend Growth

iversified

L Mutual Fund Ranks as of June 2013

o Point Returns are as on August 30, 2013

s are annualised for periods above 1-year, other wise actualised

atios are annualised

for Risk Ratios is three years

arpe Ratio the risk free rate is 8.06% - the average 91-day T-Bill auction cut-off rate for three years

ge AUM is 3-months average number as disclosed by AMFI for the period April-June 2013

High Medium Low

High

MediumLow

INTERESTRATESENSITIVITY

CREDIT QUALITY

INTERESTRATESENSITIVITY

INTERESTRATESENSITIVITY

Note:-Returns above 1 year are annualized-Balanced Funds are represented by CRISIL AMFI Balance Fund Performance Index

Table 1: SIP Returns (as on September 10, 2013)

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CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai 400076. India

Phone: + 91 22 3342 3000 Fax: + 91 22 3342 8088

Email: CRISILFundServices@crisil.com Web: www.crisil.com

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RISIL respects your privacy. We use your contact information, suchs your name, address, and email id, to fulfil your request and serviceour account and to provide you with additional information fromRISIL and other parts of McGraw Hill Financial you may find ofterest.

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ou can view McGraw Hill Financial's Customer Privacy Policy attp://www.mhfi.com/privacy.

ast updated: May, 2013

RISIL Research, a Division of CRISIL Limited has taken due care and caution in preparing this Report. Info rmation has been obtained by CRISIL from sources which it considers rel iable. However, CRISIL does not guarantee the accuracyequacy 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. CRISIL is not liable for investment decisions which may be based on the viewpressed in this Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Report. CRISIL Research operates independently of, and does not have access tormation obtained by CRISIL's Ratings Division, which may, in its regular operations, obtain information of a confidential nature which is not available to CRISIL Research. No part of this Report may be published / reproduced in any formthout CRISIL's prior written approval.

sclaimer

About CRISIL LimitedCRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leadinratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL ResearchCRISIL Research is India's largest independent and integrated research house. We provide insights, opinions, and analysis on

the Indian economy, industries, capital markets and companies. We are India's most credible provider of economy and industry

research. Our industry research covers 70 sectors and is known for its rich insights and perspectives. Our analysis is supported

by inputs from our network of more than 4,500 primary sources, including industry experts, industry associations, and trade

channels. We play a key role in India's fixed income markets. We are India's largest provider of valuations of fixed income

securities, serving the mutual fund, insurance, and banking industries. We are the sole provider of debt and hybrid indices to

India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today India's

largest independent equity research house. Our defining trait is the ability to convert information and data into expert judgments

and forecasts with complete objectivity. We leverage our deep understanding of the macro economy and our extensive secto

coverage to provide unique insights on micro-macro and cross-sectoral linkages. We deliver our research through an innovative

web-based research platform. Our talent pool comprises economists, sector experts, company analysts, and information

management specialists.

ontact Details:

eepak Mittal: +91 22 3342 8031; deepak.mittal@crisil.comurvi Nanda: +91 22 3342 8036; purvi.nanda@crisil.comajnikant Tiwari: +91 22 3342 8012; rajnikant.tiwari@crisil.com

nkur Nehra: +91 124 672 2510; ankur.nehra@crisil.com

Consolidated Account Statement (CAS). What is a Consolidated Account Statement (CAS)?

. What is the objective behind issuance of CAS?

. What is the frequency of CAS?

. What are the benefits of CAS?

. Which are the details investors need to check in the CAS?

. What should investors do if some of the folios are missing in CAS?

. How can an investor get CAS?

Consolidated Account Statement (CAS) is a single account statement which combines an investor's folio transactions across all mutual fund schemes/ fund houses

The consolidation of statement is done by identifying unique investors across fund houses based on their permanent account number (PAN).

The Securities and Exchange Board of India (SEBI) came out with the regulation in September 2011 that mandated all asset management companies to ensure tha

CAS is issued every month to investors in whose folios transactions have taken place during the month. Prior to this regulation, investors used to get multiple statement

rom different fund houses.

n December 2012, the Association of Mutual Funds in India (AMFI) launched CAS in the electronic form 'eCAS' which has replaced the paper statements. eCAS is sen

y email to investors who have registered the same email id for all their folios across fund houses. In case there is no email address provided, CAS is sent to the addres

egistered under the Know Your Customer (KYC) registration. In case KYC is absent, CAS is sent to the registered folio address.

CAS for each calendar month is issued to investors provided there is transaction in that particular month; if there are no transactions on a monthly basis, CAS will be

ssued every six months, which will provide details of non-transacted folios.

Convenience - Investors need to maintain just one document instead of multiple documents for all mutual fund transactions across fund houses.

Consolidation - Investors can gauge the value of each of their transactions plus see the total value of their entire portfolio holdings in a single document.

Mobility - Investors can access eCAS anytime anywhere with the help of a secure password. It is also an environment friendly initiative and will help reduce the

usage of paper.

CAS mentions details about different schemes and their folios by each fund house. CAS will also include all types of transactions such as purchase, redemption

witching to other schemes, systematic investment plans (SIP), systematic transfer plans (STP), systematic withdrawal plans (SWP) and dividend declarationnvestors should check the scheme's closing units and market value in CAS. Investors also need to check details such as address, registered email id, PAN, KYC

etails.

Buying and selling of mutual fund units via the demat mode will however not be included as investors should check their demat account statement for the same.

n case investors find any folios missing in CAS, they need to check whether the folio had any financial transactions during the month as the statement will reflect only

hose folios which saw transactions in that month. There is also a possibility that the PAN is not registered or updated in the folio. In such cases, investor's PAN detail

hould be updated in the folio. If PAN details are updated, an investor should check with the respective fund house for the missing folios.

nvestors can obtain the CAS from registrars. Investors need to submit their registered email id to the registrar who will subsequently send the CAS via email in a

assword protected format. Some fund houses also allow investors to register their email ids on their websites; they would then direct their respective registrar to

rovide the CAS to the registered investor.

Frequently Asked Questions