Oval:

Introduction of Company

PROFILE OF COMPANY

1.Name of Company:

PENINSULAR CAPITAL MARKTE LID.

2.Registered Office: S.T.Reddiar & Sons Building, Veekshanam Road, Ernakulam, Cochin-682035

3. Bord of Director: Mr. T.S.Anantharaman Mr. Akshay Agarawal - The Chairman - The Managing Director

4. Bankers: ICICI Bank HDFC Bank UTI Bank

5. Auditor:

MANAGEMENT TEAM

NAME

DESIGNATION

Mr. HARIHARAN Mr. Joseph Lukose Smt. Girija Devi Mr. Sojan Chacko Mr. V.P Menon Mr. SanalKumar N Mr. Girish Kumar K.S Mr. Deepak Dharmadev Mr. Harishankar

COMPANY PRESIDENT Manager Administration Manager Operations Manager Finance & Delivery Manager Marketing Manager Public Relation Training Manager - Commodities Manager - Systems Asst. Manager - DP

MISSION: Our mission is to offer clients the best combination of advanced trading software with high technology , low costs and low margin requirements, efficient and secure back office fund administration, and a broad array of products with high profit potential.

CAREERS: We are rapidly expanding our business horizon and look forward for young and energetic candidate willing to pursue their career in financial service sector. We provide a foundation for building a professional career and a place for people to achieve and grow. We have openings in various departments viz. Marketing, Depository, Back Office, Surveillance and Trading. While we emphasize on efficiency and effectiveness, we do not compromise on basic values like Honesty, Integrity and Truthfulness and is deeply rooted in our philosophy that balances personal perspectives and organizational growth. In general we look forward to strengthen our manpower resource in following categories. 1. Branch Manager The incumbent should at least be a Graduate and have minimum 3 to 5 years

experience with finance intermediary company and also willing to work any where in India. NCFM qualified persons are preferred. 2. Asst. Manager The incumbent should at least be a Graduate and have minimum 2 to 3 years experience with finance intermediary company and also willing to work any where in India. NCFM qualified persons are preferred and capable to handle work in any of the departments viz depository, trading, surveillance ,finance & accounts and marketing. 3. Dealer (Equity and Commodity ) The incumbent should at least be a Graduate and also cleared NCFM certification .Minimum 1 to 3 years experience with a share broking company . 4. Marketing Executives Fresh MBA or Graduates with 1 to 2 years experience in marketing financial products / services .

Oval:

Introduction of Mutualfund

v. History of Mutual fund When three Boston securities executives pooled their money together in 1924 to create the first mutual fund, they had no idea how popular mutual funds would become. The idea of pooling money together for investing purposes started in Europe in the mid-1800s. The first pooled fund in the U.S. was created in 1893 for the faculty and staff of Harvard University. On March 21st, 1924 the first official mutual fund was born. It was called the Massachusetts investors trust. After one year, the Massachusetts investors trust grew from $50000 in assets in 1924 to $392000 in assets (with around 200 shareholders). In contrast, there are over 10000 mutual funds in the U.S. today totaling around $7 trillion (with approximately 83 million individual investors) according to the investment company institute.

v. Introduction of Mutual fund A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.

A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.

A mutual fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas - research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual fund in its present form is a 20th century phenomenon. In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds collectively manage almost as much as or more money as compared to banks.

A draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objectives of the fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations.

A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.

In the Indian context, the sponsors promote the Asset Management Company also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the scheme.

v. What is Mutual Fund?

Invest / Pool Their money

Profit/Loss from Portfolio Of investments

Mutual Fund Co. (Pool of money)

Investing a Number of Stocks/Bonds

Profit/Loss from individual Of investments

Market (Fluctuates)

A Mutual Fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc. Benefits of Mutual Funds:-

Affordability: A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.500/-. This amount today would get you less than quarter of an Infosys share! Thus it would be affordable for an investor to build a portfolio of investments through a mutual

fund rather than investing directly in the stock market.

Diversification:The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). This kind of a diversification may add to the stability of your returns, for example during one period of time equities might underperform but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets. Similarly the information technology sector might be faring poorly but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives.

Variety Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity. For example, an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme.

Professional Management:Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. When you buy in to a mutual fund, you are handing your money to an investment professional that has experience in making investment decisions. It is the Fund Manager's job to (a) find the best securities for the fund, given the fund's stated investment objectives; and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio, as and when required.

Tax Benefits Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a confessional rate of 10.5%.

In case of Individuals and Hindu Undivided Families a deduction upto Rs. 9,000 from the Total Income will be admissible in respect of income from investments specified in Section 80L, including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax and GiftTax.

Regulations:Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.

Structure of Mutual Fund

SEBI

Trustee

Sponsor

AMC

Operations

Fund Manager

Market/Sales Mutual Fund Market/Sales

Schemes Distributor

Investor

Sponsor: Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute at least 40% of the networth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.

Trust: The Sponsor constitutes the Mutual Fund as a trust in accordance with the provisions of the Indian Trusts Act, 1882. The trust deed is registered under the Indian Registration Act, 1908.

Trustee:Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC):The Trustee as the Investment Manager of the Mutual Fund appoints the AMC. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a networth of at least 10 crore at all times.

Registrar and Transfer Agent: The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

v. Types of Mutual funds

In the investment market, one can find a variety of investors with different needs, objectives and risk talking capacities.

MUTUAL FUND

On the basis of Execution and Operation

On the basis of yield and investment pattern

CloseEnded

Open Ended

Income Fund

Growth Fund

Balance Fund

Specialised Fund

Money Market

Taxation Fund

Mutual Fund schemes can broadly be classified into many types as given below:

Close-ended Funds:The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of units. These schemes are launched with an initial public offer (IPO) with a stated maturity period after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends towards the NAV closer to the maturity date of the scheme.

Features: - The main features of the close-ended funds are:

F. The period and/or the target amount of the fund are definite and fixed beforehand. F. Once the period is over and/or the target is reached, the door is closed for the investors. They cannot purchase any more units. F. These units are publicly traded through stock exchange and generally, there is no repurchase facility by the fund. F. The main objective of this fund is capital appreciation. F. The whole fund is available for the entire duration of the scheme and there will not be any redemption demands before its maturity. G. At the time of redemption, the entire investment pertaining to a closed-end scheme is liquidated and the proceeds are distributed among the unit holders.

Open-ended Funds:An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Features: - The main features of the Open-ended funds are:

There is complete flexibility with regard to one's investment or disinvestment. These units are not publicly traded but the Fund is ready to repurchase them and resell them at any time. The investor is offered install liquidity in the sense that the unit can be sold on any working day to the Fund. The main objective of this fund is income generation. The inventors get dividend, right or bonuses as rewards for their investment. Generally, the listed prices are close to their Net Asset Value. The Fund fixes a different price for their purchases and sales.

On The Basis Of Income

Income Funds:The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.

Features: - The main features of the Income funds are:

The investor is assured of regular income at periodic intervals, says Half- yearly or years and so on. The main objective of this type fund is to declare regular dividends and not capital appreciation. The pattern of investment is oriented towards high and fixed income yielding securities like debentures, bonds etc. This is best suited to the old and retired people who may not have any regular income. It concerns itself with short run gains only.

Growth Funds:The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

Features: - The main features of the Growth funds are:

The Growth oriented fund aims at meeting the investors' need for capital appreciation. The Investment strategy therefore, conforms to the Fund objective by investing the fund predominantly on equities with high growth potential. The Fund tries to get capital appreciation by taking much risk and investing on risk bearing equities and high growth equity shares. The Fund may declare dividend, but its principal objective is only capital appreciation. This is best suited to salaried and business people who have high risk bearing capacity and ability to defer liquidity. They can accumulate wealth for future needs.

Balance Funds:The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.

Specialised Funds:-

F. Index schemes:The primary purpose of an Index is to serve as a measure of the performance of the market as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Some investors are interested in investing in the market in general

rather than investing in any specific fund. Such investors are happy to receive the returns posted by the markets. As it is not practical to invest in each and every stock in the market in proportion to its size, these investors are comfortable investing in a fund that they believe is a good representative of the entire market. Index Funds are launched and managed for such investors. An example to such a fund is the HDFC Index Fund.

Tax Saving schemes: Investors (individuals and Hindu Undivided Families HUFs) are being encouraged to invest in equity markets through Equity Linked Savings Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched out until completion of 3 years from the date of allotment of the respective Units.

Money Market Funds: The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods. Load Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.

No-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.

Oval:

Introduction of Prudential ICICI

Prudential plc is a leading international financial services group providing retail financial products and services and fund management to many millions of customers worldwide. As a group Prudential plc has, as of December 31, 2004, over GBP187 billion of funds under management, more than 16 million customers and over 22,500 employees worldwide.

Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval in recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd. ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. (Source: Overview at www.icicibank.com). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

Prudential ICICI Asset Management Company, (49%:51%) a joint venture between Prudential Plc, UK's leading insurance company and ICICI Bank Ltd, India's premier financial institution. The joint venture was formed with the key objective of providing the Indian investor mutual fund products to suit a variety of investment needs. The AMC has already launched a range of products to suit different risk and maturity profiles. Prudential ICICI Asset Management Company Limited has a networth of about Rs. 80.14 crore (1 crore = 10 million) as of March 31, 2004. Both Prudential and ICICI Bank Ltd have a strategic longterm commitment to the rapidly expanding financial services sector in India.

PruICICI will conduct its business with Honesty and trustworthiness in all interactions. A pioneering spirit and excellence in action. Collaboration and teamwork. An understanding of customer needs and the desire to satisfy them. The highest service standards. A consistently above average performance.

The Prudential ICICI AMC Board comprises reputed people from the finance industry both from India and abroad. Mr. K. V. Kamath - Chairman Mr. Mark Norbom Mr. Ajay Srinivasan Ms. Shikha Sharma Ms. Kalpana Morparia Mr. K. S. Mehta Mr. Dadi Engineer Mr. B. R. Gupta Mr. Pradip P. Shah Dr. (Mrs.) Swati A Piramal Mr, Pankaj Razdan Managing Director

Mr. E.B.Desai

- Chairman

Mr. D.J. Balaji Rao Mr. Nagesh Pinge Mr. S.P. Subhedar Mr.M.S.Parthasarathy

Pankaj Razdan Nilesh Shah Vasant Sanzigiri - Chief Investment Officer

- Managing Director

- Sr. Vice President & Head Human Resources

Kalyan Parasath - Vice President Information Technology Ranganath Athreya - Sr. VP Legal, Compliance & C.S Ashok Suvarna B Ramakrishna - Vice President - Operation - Chief Financial Officer

Prudential ICICI offer employees an ideal environment to progress their careers and enhance their skills. At Prudential ICICI, each person is given a great deal of independence and responsibility to manage their assignments and make their contributions count. We strive to provide our people with a professional work environment and a culture of respect, openness and trust. We seek to reward our people commensurate with their contributions at a competitive standard compared to the industry. Our managers in PruICICI are measured on how they build an environment that engenders meritocracy and rewards contribution. Our salary plus bonus compensation framework provides each person a means of substantially benefiting through performance related pay.

Equity funds seek to provide maximum growth of capital with secondary emphasis on dividend or interest income. They invest in common stocks with a high potential for rapid growth and capital appreciation. An equity fund gives an exposure to the stock market. The fund would have long-term growth potential but provide low current income. They are not suitable for investors who are risk averse and are focused on maximizing current income or conserving principal. The funds offered under this category are the Prudential ICICI Growth Plan, Prudential ICICI FMCG Fund, Prudential ICICI Technology Fund, Prudential ICICI Tax Plan, Prudential ICICI Index Fund, Prudential ICICI Power, Prudential ICICI Dynamic Plan, Prudential ICICI Discovery Plan, Prudential ICICI Emerging S.T.A.R. Fund, Prudential ICICI Infrastructure Fund and Prudential ICICI Services Industries Fund.

The overriding objective of the AMC in managing its investments is to produce a consistently above average long-term performance. The AMC believes in a bottom-up approach to stock picking. This means that the focus is on the fundamental quality of companies as opposed to a focus on favoured sectors and market movements. The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio. This would involve consistently examining all stocks under an internally developed research framework. A stock would be considered or inclusion in the portfolio when the valuation does not adequately capture its underlying fundamental value in the AMC's opinion based on the above factors. The AMC's portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take advantage of the opportunities that present themselves from time to time because of inefficiencies of the securities markets. The AMC will endevour to balance the increased cost on account of higher portfolio turnover with the benefits derived therefrom.

Balanced funds are more evenly invested in equities and income securities. Balanced and equityincome funds are suitable for conservative investors who want high current yield with some growth. If you seek to generate long-term capital appreciation and current income, an investment in the balanced fund would be ideal. It gives you an exposure to the stock market without the entire risk of the stock market. The funds offered under this category are the Prudential ICICI Balanced Fund, Prudential ICICI Child Care Plan and Prudential ICICI Blended Plan.

The AMC proposes to invest in a mix of equities and fixed income securities with the aim of generating capital appreciation, while at the same time minimizing the volatility inherent in pure equity schemes. With this aim, the AMC would allocate the assets between equity and fixed income instruments within the limits laid down for each scheme.

The goal of fixed income funds is to provide high current income consistent with the preservation of capital. Growth of capital is of secondary importance. These funds invest in corporate bonds or government securities that have a fixed rate of return. The funds are suitable for investors who want to maximize current income and who do not wish to assume a high degree of capital risk in order to

do so.Since bond prices fluctuate with changing interest rates, there is some principal risk involved despite the fund's conservative nature. The funds offered under this category are the Prudential ICICI Income Plan, the Prudential ICICI Gilt-Treasury Fund, The Prudential ICICI Gilt-Investment Fund, Prudential ICICI Liquid plan, Prudential ICICI Fixed Maturity Plan, Prudential ICICI Short Term Plan, Prudential ICICI Long Term Plan, Prudential ICICI Sweep Plan, Prudential ICICI Income Multiplier Fund, Prudential ICICI Monthly Income Plan, Prudential ICICI Flexible Income Plan, Prudential ICICI Gilt Fund PF Option, Prudential ICICI Long Term Floating Rate Plan and Prudential ICICI Floating Rate Plan.

The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested in will be carried out by the investment team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as longer term financial health of the issuer.Rated debt instruments in which the Scheme invests will be of investment grade as rated by a credit rating agency. In case a debt instrument is not rated, specific approval of the Board of the AMC will be obtained for such an investment. In addition, the investment team of the AMC studies the macro economic conditions, including the politico-economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.

Oval:

Introduction of UTI Security

v. INTRODUCTION UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Estb: Jan 14, 2003) who has been appointed by the UTI Trustee Company Private Limited for managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from UTI Mutual Fund. The UTI Asset Management Company has its registered office at : UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 will provide professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTI AMC. UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 on February 3 2004, for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited, registered in Guernsey, Channel Islands. UTI Mutual Fund has come into existence with effect from 1st February 2003. UTI Asset Management Company presently manages a corpus of over Rs.20000 Crore.

UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. It has a nationwide network consisting 56 UTI Financial Centres (UFCs) and representative offices in Dubai and London. With a view to reach to common investors at district level, 11 satellite offices have also been opened in select towns and districts. It has a wellqualified, professional fund management team, who have been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders. The fund managers are also ably supported with a strong in-house equity research department. To ensure better management of funds, a risk management department is also in operation.

It has reset and upgraded transparency standards for the mutual funds industry. All the branches, UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. All these have evolved UTI Mutual Fund to position as a dynamic, responsive, restructured, efficient, and transparent and SEBI compliant entity.

SPONSORS Three leading public sector banks Bank of Baroda (BOB), Punjab National Bank (PNB) and State Bank of India (SBI) and Life Insurance Corporation of India (LIC), the largest public financial investment institution and life insurer in India have entered into an agreement with the Government of India as Sponsors of the UTI Mutual Fund. Bank of Baroda Life Insurance Corporation of India Punjab National Bank State Bank of India

Trustee UTI Trustee Company Private Limited a company incorporated under The Companies Act, 1956 will be the Trustee of transferred/migrated schemes are the first and sole trustee of the Mutual Fund under the Trust Deed dated December 9, 2002 executed between the Sponsors and the Trustee Company (the Trustee). Registered office: UTI Tower, Gn Block, BAndara Kurla Complex, Bandara(East), Maumbai -400 051. Board of Directors Shri Janki Ballabh Prof P G Apte Shri I D Agarwal Shri S P Oswal

Asset Management UTI Asset Management Company Private Limited is a company incorporated under The Companies Act, 1956.

Registered office: UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai 400 051. UTI Asset Management Company Private Limited has been appointed as the Asset Management Company of the UTI Mutual Fund by the Trustee in terms of Investment Management Agreement dated December 9, 2002 executed between UTI Trustee Company Private Limited and UTI Asset Management Company Private Limited. The AMC was approved by SEBI to act as the asset management company for UTI Mutual Fund vide their letter no.MF/BC/PKN/03 dated January 14, 2003. Out of the AMC's total paid-up capital of Rs.10 crore, 25% is held by each of the Sponsors. The AMC apart from managing the schemes of UTI Mutual Fund will also manage the schemes transferred/migrated from UTI MF, in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. UTI AMC will be entering into a service agreement with the Administrator of the Specified Undertaking of The Unit Trust of India to provide back office support for business processes excluding fund management. UTI AMC has been registered as a portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 on February 3 2004, for undertaking portfolio management services. The registration code is PM/INP 000000860. UTI International Ltd., a 100 % subsidiary of UTI AMC, registered in Guernsey, Channel Islands, acts as manager to offshore funds and markets these offshore funds abroad.

Systems are in place to ensure that bank and securities accounts are segregated and there is no conflict of interest between the various activities undertaken by UTI AMC.

UTI AMC is not undertaking any other business activities other than that mentioned above.

FUND MANAGERS A K SRIDHAR SANJAY RAMDAS DONGRE GAUTAMI DESAI AMANDEEP CHOPRA SWATI KULKARNI SANJEEV BHASIN SIDDHARTH DEMBI

UTI Mutual Fund Investment Philosophy UTI Mutual Funds investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. It believes in having a balanced and well-diversified portfolio for all the funds and a rigorous inhouse

research based approach to all its investments. It is committed to adopt and maintain good fund management practices and a process based investment management.

UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sectoral allocation, as is given to security selection while managing any fund. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity. In terms of its funds performance, UTI Mutual Fund aims to consistently remain in the top quartile vis--vis the funds in the peer group. Mumbai 1st Feb 2003

Registrars: Computer Age Management Services Pvt Ltd.(CAMS) Datamatics Financial Software & services Limited Karvy Computershare Pvt. Ltd. UTI Technology Services Ltd.

Custodians: Stock Holding Corporation of India Limited Citibank NA HDFC Bank Limited

Liquid Funds Category

An open-ended pure debt liquid plan, seeking to provide highest possible current income, by investing in a divesified portfolio of short-term money market securities.

To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments and fixed rate debt / money market instruments.

The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt.

It aims to generate reasonable return commensurate with objective of Low risk and high degree of liquidity.

Income Funds Category

An open-end Gilt-Fund with the objective to invest only in Central Government securities including call money, treasury bills and repos of varying maturities with a view to generate credit risk free return...

An open-end Gilt-Fund with the objective to invest only in Central Government securities including call money, treasury bills and repos of varying maturities with a view to generate credit risk free return...

To generate credit risk-free return through investments in sovereign securities issued by the Central and / or a State Government. LTP

To generate credit risk-free return through investments in sovereign securities issued by the Central and / or a State Government. STP

It aims to generate attractive returns consistent with capital preservation and liquidity..

It aims to generate attractive returns consistent with capital preservation and liquidity.

To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments and fixed rate debt / money market instruments.

An open ended debt oriented fund with 100% investment in Debt/G-sec. Investment can be made in the name of the children upto the age of 15 years..

The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt.

An open-ended debt oriented fund investing a minimum of 90% in Debt and G-Sec and a maximum of 10% in equity instruments. The fund aims to distribute income periodically. Best suited to the investors...

Open-end 100% pure debt fund, which invests in rated corporate debt papers and government securities with relatively low risk and easy liquidity.

Asset Allocation Funds Category

The UTI- Variable Investment Scheme is an open-ended scheme with dynamic allocation between equity and debt classes.

Index Funds Category

UTI MIF is an open-ended passive fund with the primary investment objective to invest in securities of companies comprising the BSE sensex in the same weightage as these companies have in BSE sensex...

To provide returns that closely correspond to the returns of stocks as represented by BSE Sensex under Sensex Plan and S&P CNX Nifty Index under Nifty Plan subject to tracking error...

To provide returns that closely correspond to the returns of stocks as represented by BSE Sensex under Sensex Plan and S&P CNX Nifty Index under Nifty Plan subject to tracking error.

An open-ended equity fund with the objective to invest in select stocks of the BSE Sensex and the S & P CNX Nifty. The fund does not replicate any of the indices but aims to attain performance better than the performance of the indices.

UTI NIF is an open-ended passive fund with the objective to invest in securities of companies comprising of the S&P CNX Nifty in the same weightage as they have in S&P CNX Nifty...

The objective of the scheme is to provide investment returns that, before expenses, closely correspond to the performance and yield of the basket of securities underlying the S&P CNX NIFTY Index.

Balanced Funds Category

An open-ended balance fund investing between 40% to 60% in equality related securities and the balance in debt (fixed income securities) with a view to generate regular income together with capital appreciation.

An Open-ended balance fund. The scheme aims at providing income distribution/ cumulation of income and capital appreciation over a long term from a prudent portfolio mix of equity and fixed income securities.

An open-ended scheme with a minimum 70% investment in Debt/G-Sec and a maximum 30% investment in equity. The fund is designed to provide an enabler to adult female persons in pooling their own savings and/ or gifts into an investment vehicle so as to get periodic cash flow near to the time of any chosen festival/ occasion or to allow income/ gains redeployed in the scheme and repurchase units partially or fully as and when desired.

An open-ended debt oriented fund with investment in Debt/G-Sec of minimum 60% and a maximum of 40% in Equity. Investment can be made in the name of the children upto the age of 15 years so as to provide them, after they attain the age of 18 years, a means to receive scholarship to meet the cost of higher education and/or to help them in setting up a profession, practice or business or

enabling them to set up a home or finance the cost of other social obligation.

This is an open-end income oriented scheme. The scheme aims at catering to the investment needs of charitable, religious, educational trusts and similar institutions to provide them an investment vehicle to avail of tax exemption and also to have regular income.

An open-ended balanced fund with an objective of investing not more than 40% of the funds in equity and equity related instruments and balance in debt and money market instruments with low to medium risk profile. Investment by an individual in the scheme is eligible for exemption under section 88 of the IT Act 1961. In addition the scheme also offers Life Insurance and Accident Insurance cover.

An open-ended balanced fund with a maximum equity allocation of 40% and the balance in debt. This ensures to provide pension to investors particularly self-employed persons after they attain age of 58 years, in the form of periodical cash flow upto the extent of repurchase value of their holding through systematic withdrawal plan.

Equity Funds Category

An open-ended equity fund investing a minimum of 80% in equity and equity related instruments. It aims at enabling members to avail tax rebate under Section 88 of the IT Act and provide them with the benefits of growth.

The scheme primarily aims at securing for the investors capital appreciation by investing the funds of the scheme in equity shares of companies with good growth prospects.

An open-end equity fund aiming to provide benefit of capital appreciation and income distribution through investment in equity.

An open-ended equity fund with an objective of long-term capital appreciation through investments in equities and equity related instruments, convertible debentures, derivatives in India and also in overseas markets.

Capital appreciation by primarily investing in equity and equity related instruments.

This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments.

Mastergain is open-ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile.

To seek capital appreciation through opportunities arising out of listed growth and undervalued stocks.

An open-ended fund which invests exclusively in the equities of the Petro Sector companies. One of the Growth Sectors Funds aiming to provide growth of capital over a period of time as well as to make income distribution frominvestment in stocks of Petro Sector.

An open-ended fund which exclusively invests in the equities of the Pharma & Healthcare sector companies. This fund is one of the growth sector funds aiming to invest in companies engaged in business of manufacturing and marketing of bulk drug, formulations and healthcare products and services.

An open-ended fund which invests exclusively in the equities of the Software Sector companies. One of the growth sectors funds aiming to invest in equity shares of companies belonging to information technology sector to provide returns to investors through capital growth as well as through regular income distribution.

An open-ended equity fund with the objective to provide Capital appreciation through investments in the stocks of the companies engaged in the automobile and auto-ancillary industry.

An open-ended equity fund with the objective to provide capital appreciation through investments in the stocks of the companies/institutions engaged in the banking and financial services activities.

An open-ended equity fund for investment in equity shares, convertible & non-convertible debentures and other capital and money market instruments with a provision to invest upto 50% of its corpus in PSUs equities and equity related products. The fund aims to provide unit holders capital appreciation & income distribution.

An open-ended equity fund investing in stocks which are currently under valued to their future earning potential and carry medium risk profile to provide 'Capital Appreciation'.

An open-ended equity fund with the objective to invest predominantly in the equity shares of multinational companies in diverse sectors such as FMCG, Pharmaceutical, Engineering etc.

An open-ended debt oriented fund investing a minimum of 90% of its exclusively in the equities of companies having strong products or corporate brands to provide investors benefits of capital appreciation.

An open-ended fund which invests in the equities of the Services Sector companies of the country. One of the growth sector funds aiming to provide growth of capital over a period of time as well as to make income distribution by investing the funds in stocks of companies engaged in service sector such as banking, finance, insurance, etc.

An open-ended equity fund with the objective to provide capital appreciation through investment in companies from the universe of top 50 companies in terms of market capitalization.

An open-ended equity fund with the objective to provide 'Capital appreciation' by investing primarily in mid cap stocks.

An open-ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies engaged in the sectors like Metals, Building materials, oil and gas, power, chemicals, engineering etc. The fund will invest in the stocks of the companies which form part of Basic Industries.

An open-ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies where the State/Central Govt owns the majority of the holding or management control is vested with State/Central Govt.

Capital appreciation by investing in listed companies that are / have potential to emerge as global players in their respective sectors.

UTI Dividend Yield Fund is an open-ended equity orientedscheme, which endeavours to provide medium to long termcapital gains and/or dividend distribution by investing predominantly in equity and equity related instruments thatoffer a high dividend yield.

This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in stocks that are "Leaders" in their respective industries/sectors/sub-sector.

The fund aims to provide long-term capital appreciation/dividend distribution through investments in listed equities and equity-related instruments. The Fund's investment policies are based on insights from behavioral finance.

Oval:

Comparision of Diff. Securitics

Comparison UTI Equity Fund & PruICICI Technology Fund

Type of Scheme Open Ended Nature of Scheme Equity Inception Date Apr 20, 1992 Face Value(Rs/Unit) 10 Fund Size (Rs. in 1595.1165 on Feb 28, 2006 crores) Increase/Decrease since Jan 31, 2006 (Rs. 34.335 in crores) Minimum Investment 2000 (Rs) Purchase RedemptionsDaily NAV Calculation Daily Less then 2.5 Crore 2.25% 2.5 Entry Load Crore to 20 Crore 0.5%. More then 0%. Exit Load 0%

Open Ended Equity Jan 28, 2000 10 128.8023 on Feb 28, 2006 -9.422 5000 Daily Daily Less then 5 Crore 2.25% More Then 5 Crore 0%. Exit Load is 0%.

Top 10 Holdings as on Feb 28, 2006 Company per % Company per % Grasim Industries Ltd 5.87Subex Systems Ltd Deccan Chronicle ITC Ltd 5.69 Holdings Bharati Tele - Ventures 5.56Satyam Computer Satyam Computer 5.42Mastek Ltd Services Shoppers Stop Ltd 5.2Infosys Technologies Ltd Nestle India Ltd 5.14TCS UTI Bank Ltd 5.13HCL Technologies Punjab National Bank 5.06Visual Soft Technologies TVS Motor Company 5.06Tulip IT Services Ltd. IVRCL Infrastructure 5.04Aztec Software

12.52 12.25 5.63 5.47 4.9 4.47 4.13 3.8 3.79 3.79

NAV UTI Equity Fund Growth Prudential ICICI Technology Fund Growth

ON 16 FEBRUARY 30.84 10.99

Type of Scheme Nature of Scheme Inception Date Face Value(Rs/Unit) Fund Size (Rs. in crores) Increase/Decrease since Jan 31, 2006 Minimum Investment (Rs) Purchase Redemptions NAV Calculation

UTI Balanced Fund Growth Open Ended Equity & Debt Feb 12, 1995 10 559.4504 -2.034 1000 Daily Daily Less ten 2.5 Crore 2.25% to 20 Crore 0.5%. More Then 2 Crore 0%. Exit Load is 0%. Comparison

Prudential ICICI Balanced Growth Open Ended Equity & Debt Oct 7, 1999 10 321.1083 -10.968 5000 Daily Daily

Entry Load

2.5 Less the 5 Crore 2.25%. Greater than 5 Crore 0%. 0%

Exit Load

UTI Balanced Fund & PruICICI Balanced Fund Top 10 Holdings UTI Balanced Fund Growth ICICI BANK LTD. IDFC Reliance Industries Ltd Punjab National Bank Asian Paints Limited 8.88 4.45 2.66 2.65 2.28 Prudential ICICI Balanced Growth Bharat Forge Ltd 7.11 Madras Cements Ltd 5.82 Balmer Lawrie 5.16 Ultratech Cemco Ltd. 4.62 Grasim Industries Ltd 4.18

Asian Paints Limited ITC Ltd Bharat Heavy Electricals Ltd NALCO ACC Ltd. Dabur India Ltd

2.28 2.28 2.26 2.21 2.18 2.17

Grasim Industries Ltd Wyeth Laboratories Ltd Reliance Industries Ltd GOI Citifinancial Consumer Fin. State Bank of India

4.18 4.06 3.75 3.54 3.51 2.69

NAV UTI Balanced Fund - Growth Prudential ICICI Balanced - Growth

ON 16 FEBRUARY 50.1 29.79

Comparison UTI Retirement Benefit Plan & Purl ICICI Income Fund Growth UTI Retirement Benefit Plan Open Ended Debt Dec 26, 1994 10 436.6538 2.278 Prudential ICICI Income Fund Growth Open Ended Debt Jun 19, 1998 10 278.8337 on Feb 28, 2006 -4.282

Type of Scheme Nature of Scheme Inception Date Face Value(Rs/Unit) Fund Size (Rs. in crores) Increase/Decrease since Jan 31, 2006 Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load

10000 5000 Monthly Daily Weekly Daily Entry Load is 1.5%. Entry Load is 0%. Less then 1 Year 5%. 1 Year Less then 1 Mil., to 3 Year 05% More than 1 3%. After 3 Mil., 00% Year 1%.

UTI Retirement Benefit Plan Company GOI Reliance Industries Ltd Hongkong & Shanghai Banking Corpo. Asahi India Safety Glass Ltd Hindalco Industries Ltd State Bank of India GOI Balmer Lawrie & Company Ltd Madras Cements Ltd Bharat Forge Ltd

Top 10 Holdings Prudential ICICI Income Fund Growth Per % Company Per % 5.45GOI 14.56 4.25State Bank of India 10.86 3.94Indian Oil Corporation Ltd 3.62GOI 3.47Industrial Dev. Bank Of India 3.45Associated Cement Co. Ltd 3.44GOI 3.23Grasim Industries Ltd 2.82GOI 2.43Ultra Tech Cement 8.74 7.29 6.85 3.58 3.55 2.09 1.72 1.05

NAV UTI Retirement Benefit Plan Prudential ICICI Income Fund Growth

ON 16 FEBRUARY 19.2384 20.3376

Fund Allocation

Oval:

Findings

Findings

v. In compassion to MFs people are more interested in investing in other instruments like bank deposits, post office saving schemes, PPF, NSC, LIC etc.

v. Now days because of higher growth of Indian capital market peoples are little bit aware about MF.

v. People with more good income are not investing in MFs because these do not know the concept of NF properly and more area thinks that MFs now a day's are becoming risky due to unstable equity market.

v. People are investing their money for regular income in post office, Bank Deposits and there sources but they don't

Oval:

Suggestions

Suggestions

Considering the above findings the suggestion is: -

v. Due to lack or less awareness of people about MFS they are not investing in it. Hence, it is necessary to educate them by arranging some educational seminar be on MFS to show them how to invest in MFS? What is the liquidity? What is the risk covered in MFS?

v. Most of people know only UTI MFs only. Hence, it is necessary to increase advertisement effort for private MFs & public MFs.

v. They are have to increase their awareness advertisement campaign as they do in cash of bonds and fixed deposits so that manned awareness of MFs increase and inventory can think before investity in bon do or fixed deposits or equity shares.

Oval:

Bibliography

BIBLIOGRAPHY

NO. 1 2 3 4

NAME OF BOOK Investment Management Investment Management Capital Market in India Investment Management

EDITION 4th -

AUTHOR V.A.Avadhani V.K.Bhalla Gordon & Natarajan V.Gangadhar

Wed Site: www.utifm.com www.pruicici.com www.peninsularindia.com www.amfi.com