December 26,2003

Turning

Nifty Juniorin

to

A Share

Junior BeES

December 26,2003

Second Exchange Traded Fund (ETF) from Benchmark Asset Management Company Pvt. Ltd.

Combination of a share and a mutual fund unit

Real-time Trading on NSE after the listing

Will be available across 4000 NSE terminals in 400 cities

Tracks the CNX Nifty Junior Index (Currently no other index funds available on this index)

Priced at 1/10th of the CNX Nifty Junior Index

Introduction to Junior BeESN I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

About Benchmark

First AMC in India with focus on passive and quantitative asset management First AMC in Asia (ex Japan) to launch ETF, and only18th in the world Launched the first ETF in India – Nifty BeESRun by a team of professionals with vast experience in companies like Merrill Lynch, CRISIL, Salomon Smith Barney, etc.

Directors of Trustee Co.Dr. S.A. Dave Dr. Pravin P ShahMr. Dakshesh

Dhruv

AMC DirectorsMr.Dhirubhai

MehtaMr. Sevantilal

ParekhMr. Shripad HalbeMs. Susan ThomasMr. T.N.V. Ayyar

FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

December 26,2003

About Nifty BeES: India’s First ETF

Listed on NSE and trading real-time since January 8, 2002Recorded the lowest tracking error since launch (0.12%) amongst all the index funds in the country Maximum Premium/Discount to NAV has been between +&-0.5% (Source: Business Standard)

FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

“Nifty BeES seems the best index fund when it comes to all three parameters; Entry loads, Expense ratios and Tracking Error.It is India’s first and only Exchange Traded Fund or simply put, a next generation index fund.”

- Business World, September 30, 2002

“Investing in Nifty BeES is a comparatively better method of participating in any market rally”

- The Economic Times, December 2, 2002

December 26,2003

About CNX Nifty Junior Index

Scientifically developed index managed by IISL (NSE)Consists of the next rung of liquid securities after S&P CNX NiftyCNX Nifty Junior was introduced on Jan. 1, 1997, with base date and base value being November 03, 1996 and 1000 respectivelySelection of the index set is based on two criteria:1. Liquidity (Impact Cost)2. Market CapitalizationNifty Junior often acts as incubator for the stocks eligible for Nifty i.e. most of the stock included in Nifty are from Junior Nifty but this is not true other way around

FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

December 26,2003

S&P CNX Nifty Vs. CNX Nifty Junior FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

(As on Nov. 28, 2003) Nifty Junior

Market Cap (in Rs. Crores) 544,756 108,847

P/E Ratio 15.37 12.18

Volatility (of Daily Returns) 1.64% 1.91%

December 26,2003

S&P CNX Nifty Vs. CNX Nifty Junior (cont…) FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

Major Industry Weightages Industries Nifty Junior

Banking & Finance 12.25% 28.48% Automobile 6.34% 6.43% Pharmaceuticals 8.27% 11.71% Petroleum 13.45% 0.98% Diversified 9.45% 0.62% Computer Software 16.47% 14.52% Others 33.77% 37.26% Total 100% 100%

December 26,2003

S&P CNX Nifty Vs. CNX Nifty Junior (cont…) FTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYBEES NIFTYB

Nifty Junior is a ‘higher risk higher return’ index than Nifty

0

1000

2000

3000

4000

5000

6000

Nifty

Junior

December 26,2003

First ETF came in 1993 on S&P500 called SPDRs

SPDRs and QQQs (ETF on Nasdaq 100) are the most actively traded ETFs

Globally, there are currently 277 ETFs with 361 listings on exchanges around the world

On November 29 , 2003 the ETF market globally was $190.26 billion (Source: MSDW)

ETFs launched across the world include Japan in September 2001 and in Korea and Singapore in 2002

Nearly 60% of trading volumes on American Stock Exchange comprises of ETFs

History of ETFsN I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

Growth of ETFs

Source: Bloomberg, Morgan Stanley Research

N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

Worldwide ETF Growth

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

Ass

ets

US

D M

illi

on

s

0

50

100

150

200

250

300

No

. o

f E

TF

's

Assets USD Millions 811 1121 2302 5258 8234 17596 39605 74337 104800141621190260

No. of ETF 3 3 4 21 21 31 33 92 202 280 277

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Nov-03

December 26,2003

How Junior BeES work

Secondary market

Seller

Buyer

NSE

Junior BeES Cash

Junior BeES Cash

Primary market

Buy / sell

Market making /

Arbitrage

Fund

Authorised

Participants /

Financial

Institutions

Creation

in-kind

Redemption

in-kind

N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

Index tracking – a long term winner

It has been proved that It is not possible to consistently outperform the overall stock market

In the last 20 years, 85% of actively managed funds have under performed the S&P 500 in US

Due to this, approximately 25% of the invested assets in the U.S. is indexed

Index tracking is relatively a cheaper strategy to implement

Indices are dynamic, transparent and have high investor recall

No fund manager risk, but pure equity market exposure

N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

Junior BeES Advantages

Simple – Can be bought/ sold on NSE like a share…real-time

Economical – No load scheme. Annual expense ratio including management fees is a maximum 1% of the daily average net assets. One of the lowest for any mutual fund scheme in India.

Diversification – It’s a cost efficient way to invest in a basket of some of the most liquid mid-cap securities

Equitable Structure – Long term investors insulated from short term trading activity

Transparent – Investors have access to information on the portfolio constituents represented represented on a daily basis

N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

Junior BeES vs. Open ended Index fundsAttribute Junior BeES Traditional Open

Ended Index Funds

Traded throughout the day Yes No

Low Expense Ratio Yes No

Trade at any brokerage firm Yes No

Hedging Tool Yes No

Ability to lend units Yes No

Tracking Best Average

NAV Indicative Real time Daily

Liquidity Fund / Stock market Fund

Structure Insulates long term investor from short term

trading activity

Does not insulate long term investors

from short term investor activity

N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B E E S J U N I O R B

December 26,2003

THANK YOU