1
UNEARTHING OPPORTUNITIES Fidelis-SM- 0000 that he was no longer able to feed his family. Hearing that the king greatly encouraged talent and was famed for his generosity, the poet set off for the Royal Palace. When brought before the king, he bowed low and asked that he may recite a poem. On hearing his recitation, the king, well pleased, asked him to name his reward. The poet, pointing to a finely wrought chess board before the king said “Your highness, if you place just one grain of rice on the first square of this chess board, and double it for every square, I will consider myself well rewarded.” “Are you sure?” asked the king, greatly surprised. “Just grains of rice, not gold?” “Yes, your highness” affirmed the humble poet. “So it shall be” ordered the king and his courtiers started placing the grain on the chess board. One grain on the first square, 2 on the second, 4 on the third, 8 on the fourth and so on. th By the time they came to the 10 square they had to place 512 grains of rice. The number th nd swelled to 5,24,288 grains on the 20 square. When they came to the half way mark, the 32 _ square, the grain count was 214,74,83,648 that is over 214 crores! Soon the count increased to lakhs of crores and eventually the hapless king had to hand over his entire kingdom to the clever poet. And it all began with just one grain of rice! Moral of the story : Never underestimate the power of compounding. If you stay invested long enough, it'll work for you. A small sum invested every month from the beginning of your work-life can lead to a very impressive amount at the time of your retirement. SMS: SFUND to 56767 Email: [email protected] www.sundarambnpparibas.in Call Toll-free: 1800-425-1000 Two select funds for your SIP GROWTH FUND Sundaram BNP Paribas An Open-End Equity Fund . ... SMILE Sundaram BNP Paribas Small and Medium Indian Leading Equities Fund An Open-End Equity Fund *BSE 200 Index Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices/investor service centres of Sundaram BNP Paribas Asset Management, its distributors and at www.sundarambnpparibas.in. Fund Facts: Name: Sundaram BNP Paribas Growth Fund; Investment Objective: To achieve capital appreciation by investing predominantly in equities and equity-related instruments. Asset Allocation: Equity and equity-related instruments: up to 95%. Debt instruments including securitised Debt: up to 35%. Money market instruments up to 25%. Exposure in derivative shall not exceed 25% of the portfolio. The Scheme may invest up to 35% of the net assets in overseas securities. Benchmark: BSE 200 Index. Fund Facts: Name: Sundaram BNP Paribas S.M.I.L.E Fund (Small and Medium Indian Leading Equities Fund). Investment Objective: To primarily achieve capital appreciation by investing in diversified stocks that are generally termed as small and mid-caps and by investing in other equities. Asset Allocation: Equity instruments – small-cap and mid-cap stocks (including investments in ADRs and GDRs): At least 65%. Other Equities (including investment in ADRs and GDRs): Not exceeding 35%. Equity Futures & Options including those of indices: Not exceeding 25%. Money market instruments: Not exceeding 15%. Exposure in derivative shall not exceed 25% of the portfolio. The Scheme may invest up to 35% of the net assets in overseas securities. Benchmark: S & P CNX Mid-cap. Scheme-Specific Risk Factors: Small-cap stocks are generally more illiquid. Broad features common to both funds: Fund Type: Open-end equity schemes. Terms of Offer: NAV. Plans: Regular & Institutional; Options: Dividend Payout, Dividend Reinvestment, Dividend Sweep & Growth. Minimum Investment Amount: Rs 5,000 and multiples of Rs 1 and for additional purchase. Exit Load: 1% if redeemed within 12 months from date of allotment.. There is no entry/exit load for bonus units and dividend re-investment. NAV publication/sale/redemption will be done on all business days. Risk Factors applicable to both funds: Change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors. Tax-free status for long-term capital gains and dividend will depend on the fund investing at least 65% in equity to qualify in accordance with provisions of the Income-Tax Act. If and to the extent, the portfolio includes overseas stocks, investors will be exposed to country risk, currency risk, geo-political risk, legal restrictions and regulation changes in geography other than India. General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram BNP Paribas Growth Fund and Sundaram BNP Paribas Small and Medium Indian Leading Equities Fund (S.M.I.L.E) Fund: are only the names of the schemes and do not in any manner indicate either quality or future prospects and returns. Statutory: Mutual Fund: Sundaram BNP Paribas Mutual Fund is a trust under Indian Trusts Act, 1882. Sponsors: Sundaram Finance Ltd & BNP Paribas Asset Management. Liability for sponsors is limited to Rs 1 lakh. Investment Manager: Sundaram BNP Paribas Asset Management Company Ltd. Trustee: Sundaram BNP Paribas Trustee Company Ltd. Past performance may or may not be sustained in future. Return / Value of Rs 1000 a month SIP are as of April 30, 2010 and are computed using NAV of Growth Option. Returns in percentage computed on a compounded annual basis. Investment and value for the fund and benchmark are in rupees. Period Since Inception Last 10 years Last 7 years Last 5 years Last 3 years Returns % Fund Benchmark* Value of Rs.1000 a month SIP Investment Fund Benchmark* GROWTH FUND Period Returns % Fund Benchmark Value of Rs.1000 a month SIP Investment Benchmark S.M.I.L.E FUND Since Inception Last 5 years Last 3 years Last 2 years Last 1 year S&P CNX Mid-cap Fund 25.4 26.2 22.0 12.7 104.1 21.1 22.9 15.4 7.3 108.8 62,000 36,000 24,000 12,000 1,00,603 50,375 36,420 14,807 1,13,556 54,783 38,281 14,780 Last 1 year 21.0 19.4 32.0 21.9 9.2 66.5 14.9 15.8 30.0 22.1 10.2 66.5 1,56,000 1,20,000 84,000 60,000 36,000 12,000 7,90,924 4,34,886 1,75,764 85,338 43,996 13,672 5,80,009 3,74,725 1,70,869 88,496 45,800 13,610 60,000 1,07,199 95,445

Sundaram Mutual S.M.I.L.E. Fund May 2010 Chess Board Systematic Investment Plan

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Page 1: Sundaram Mutual S.M.I.L.E. Fund May 2010 Chess Board Systematic Investment Plan

U N E A RT H I N G O P P O RT U N I T I E S

Fidelis-SM- 0000

that he was no longer able to feed his family. Hearing that the king greatly encouraged talent

and was famed for his generosity, the poet set off for the Royal Palace. When brought before

the king, he bowed low and asked that he may recite a poem. On hearing his recitation, the

king, well pleased, asked him to name his reward.

The poet, pointing to a finely wrought chess board before the king said “Your highness, if you

place just one grain of rice on the first square of this chess board, and double it for every

square, I will consider myself well rewarded.” “Are you sure?” asked the king, greatly

surprised. “Just grains of rice, not gold?” “Yes, your highness” affirmed the humble poet.

“So it shall be” ordered the king and his courtiers started placing the grain on the chess board.

One grain on the first square, 2 on the second, 4 on the third, 8 on the fourth and so on.

th

By the time they came to the 10 square they had to place 512 grains of rice. The number

th

nd

swelled to 5,24,288 grains on the 20 square. When they came to the half way mark, the 32

_

square, the grain count was 214,74,83,648 that is over 214 crores! Soon the count increased

to lakhs of crores and eventually the hapless king had to hand over his entire kingdom to the

clever poet. And it all began with just one grain of rice!

Moral of the story : Never underestimate the power of compounding. If you stay

invested long enough, it'll work for you. A small sum invested every month from

the beginning of your work-life can lead to a very impressive amount at the time

of your retirement.

SMS: SFUND to 56767 Email: [email protected] www.sundarambnpparibas.in

Call Toll-free: 1800-425-1000

Two select funds for your SIP

GROWTH FUNDSundaram BNP Paribas

An Open-End Equity Fund

. . . .S M I L ESundaram BNP Paribas Small and Medium

Indian Leading Equities FundAn Open-End Equity Fund

*BSE 200 Index

Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices/investor service centres of Sundaram BNP Paribas Asset Management, its distributors and at www.sundarambnpparibas.in. Fund Facts: Name: Sundaram BNP Paribas Growth Fund; Investment Objective: To achieve capital appreciation by investing predominantly in equities and equity-related instruments. Asset Allocation: Equity and equity-related instruments: up to 95%. Debt instruments including securitised Debt: up to 35%. Money market instruments up to 25%. Exposure in derivative shall not exceed 25% of the portfolio. The Scheme may invest up to 35% of the net assets in overseas securities. Benchmark: BSE 200 Index. Fund Facts: Name: Sundaram BNP Paribas S.M.I.L.E Fund (Small and Medium Indian Leading Equities Fund). Investment Objective: To primarily achieve capital appreciation by investing in diversified stocks that are generally termed as small and mid-caps and by investing in other equities. Asset Allocation: Equity instruments – small-cap and mid-cap stocks (including investments in ADRs and GDRs): At least 65%. Other Equities (including investment in ADRs and GDRs): Not exceeding 35%. Equity Futures & Options including those of indices: Not exceeding 25%. Money market instruments: Not exceeding 15%. Exposure in derivative shall not exceed 25% of the portfolio. The Scheme may invest up to 35% of the net assets in overseas securities. Benchmark: S & P CNX Mid-cap. Scheme-Specific Risk Factors: Small-cap stocks are generally more illiquid. Broad features common to both funds: Fund Type: Open-end equity schemes. Terms of Offer: NAV. Plans: Regular & Institutional; Options: Dividend Payout, Dividend Reinvestment, Dividend Sweep & Growth. Minimum Investment Amount: Rs 5,000 and multiples of Rs 1 and for additional purchase. Exit Load: 1% if redeemed within 12 months from date of allotment.. There is no entry/exit load for bonus units and dividend re-investment. NAV publication/sale/redemption will be done on all business days. Risk Factors applicable to both funds: Change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors. Tax-free status for long-term capital gains and dividend will depend on the fund investing at least 65% in equity to qualify in accordance with provisions of the Income-Tax Act. If and to the extent, the portfolio includes overseas stocks, investors will be exposed to country risk, currency risk, geo-political risk, legal restrictions and regulation changes in geography other than India. General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram BNP Paribas Growth Fund and Sundaram BNP Paribas Small and Medium Indian Leading Equities Fund (S.M.I.L.E) Fund: are only the names of the schemes and do not in any manner indicate either quality or future prospects and returns. Statutory: Mutual Fund: Sundaram BNP Paribas Mutual Fund is a trust under Indian Trusts Act, 1882. Sponsors: Sundaram Finance Ltd & BNP Paribas Asset Management. Liability for sponsors is limited to Rs 1 lakh. Investment Manager: Sundaram BNP Paribas Asset Management Company Ltd. Trustee: Sundaram BNP Paribas Trustee Company Ltd.

Past performance may or may not be sustained in future. Return / Value of Rs 1000 a month SIP are as of April 30, 2010 and are computed using NAV of Growth Option. Returns in percentage computed on a compounded annual basis. Investment and value for the fund and benchmark are in rupees.

Period

Since Inception

Last 10 years

Last 7 years

Last 5 years

Last 3 years

Returns %

Fund Benchmark*

Value of Rs.1000 a month SIP

Investment Fund Benchmark*

GROWTH FUND

Period

Returns %

Fund†

Benchmark

Value of Rs.1000 a month SIP

Investment†

Benchmark

S.M.I.L.E FUND

Since Inception

Last 5 years

Last 3 years

Last 2 years

Last 1 year†S&P CNX Mid-cap

Fund

25.4

26.2

22.0

12.7

104.1

21.1

22.9

15.4

7.3

108.8

62,000

36,000

24,000

12,000

1,00,603

50,375

36,420

14,807

1,13,556

54,783

38,281

14,780

Last 1 year

21.0

19.4

32.0

21.9

9.2

66.5

14.9

15.8

30.0

22.1

10.2

66.5

1,56,000

1,20,000

84,000

60,000

36,000

12,000

7,90,924

4,34,886

1,75,764

85,338

43,996

13,672

5,80,009

3,74,725

1,70,869

88,496

45,800

13,610

60,000 1,07,199 95,445