MARCH 2011 - IDBI Mutual · MARCH 2011 Dear Investors, ˜e ... foreign investors can now invest in Indian ... Primary articles’ inflation also fell to 14.59% v/s 17.26%, on the

MARCH 2011

Dear Investors,

�e Union Budget dominates February and this year was no di�erent. Pages were written about what the �nance minister would do and many more pages were written about what he had done. As usual people were reluctant to praise the budget and the markets shot up initially as the budget was being read and then settled down…. only to go up sharply again the next day. In a nutshell I believe that this budget was a good one, not because it did (or did not do) anything spectacular but because it was a budget that signaled continuity of a long-term stable direction on the path of �scal discipline and reforms, even in the face of elections and other pressures to be populist.

�e budget had some interesting provisions for mutual funds. Firstly, foreign investors can now invest in Indian mutual funds. �is is a huge step towards allowing free �ow of retail capital into India. �e world is looking at India as an investment destination and in most developed countries the growth rates that we enjoy today can only be dreamed o�. Once the modalities are worked out this will be a source of stable equity funds in the Indian capital market.

Secondly, the categorizing of cold storage and fertilizer businesses as infrastructure has interesting implications. Now these businesses can bene�t from the cheaper funding available for this industry. Cold storage and fertilizer have important

implication for agricultural production and distribution, the main cause of rampant price �uctuations of agri- commodities.

�irdly, the emphasis on education is important from a social perspective but it also gives a �llip to the education industry.

Increased government spending has been a matter of concern for investors and it was heartening to see the �scal de�cit for the year come in at 5.1%, lower than the budgeted 5.5%. If the government is able to achieve the goal of reducing de�cit to 4.60% of GDP in the coming year it will be another step in the right direction. �e debt market has given the bene�t of doubt to the �nance minister and reacted positively to these steps. Any slippages on the �scal front could however change the mood of the market.

All in all, I think the budget is an excellent one, and the stock market should welcome it. For you, investors, it is a clear signal that the India growth story continues to develop along healthy lines. What we have been advocating i.e SIP in index as the best way to capture this prosperity in your portfolio, continues to hold good.

I wish you a bright & colourful Holi

Krishnamurthy VijayanMD & Chief Executive O�cer

2

The month was characterized by a strengthening optimism regarding sustained economic recovery, marred by geopolitical tensions spreading to other Arab countries like Libya and Jordan. Libya being a significant producer of quality crude oil, crude prices rallied sharply as fears abound of rebellion spreading to the strategic kingdom of Saudi Arabia and other OPEC nations.

As Government concluded its borrowing programme for the fiscal, and steadily expended the budgeted funds, liquidity further eased but still remained negative, with deficit of about Rs.75,000 crores during the month. However, due to continued demand for funds by banks, yields on 3-month Certificates of Deposits (CD’s) moved up by another 65 basis points from 9.45% to 10.10%, while 1-year CD’s moved to 10.20%, thus rendering the money market curve almost flat. Benchmark 10-year G-sec yields rose to 8.20% in the first week of the month, but later rallied due to absence of Government bond auctions, closing the month at 8.00%.

The Union Budget for 2011-12 was representative of a tight-rope walk by the Finance Minister, being neither too reformist nor populist. While fiscal deficit for 2010-11 was 5.1%, well within the budgeted number of 5.5% (mainly due to the windfall collection from 3G auctions), the budgeted fiscal deficit of 4.6% for 2011-12 drew wide skepticism. The optimistic target seeks support from tax revenue buoyancy on the back of expected economic growth of 9% in 2011-12, and extensive reduction in subsidies and other non-plan expenditure. As expected, not

much tinkering was done with taxation laws in view of the impending GST and DTC regime. The mutual fund industry was in for a pleasant surprise as foreign nationals will now be allowed to invest in equity mutual funds. Also, additional FII limits of $20 billion will be allowed infrastructure-based corporate bonds, so as to garner the much needed funds for long term infrastructure development.

WPI for January marginally fell to 8.23% (YoY) from 8.43% in December. However, weekly food inflation fell significantly to 11.49% for the week ended February 12, from 17.05% for the week ended January 22 due to sharp decline in prices of vegetables and pulses. The fuel and power index rose marginally to 12.14% from 10.87% mainly due to rise in prices of Aviation Turbine Fuel. Primary articles’ inflation also fell to 14.59% v/s 17.26%, on the back of receding food prices.

IIP growth for December was a dismal 1.6% YoY, against 2.7% growth in November, with manufacturing growth at 1%. Out of 17 manufacturing industry groups, 5 recorded negative growth. However, the HSBC India Manufacturing Purchasing Managers’ Index (PMI), a leading indicator of the overall health of the manufacturing sector, rose to 57.9 in February from 56.8 in January, with accelerating orders, tight labor markets and rising material costs, hinting at further tightening by RBI.

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

Equity Market Overview

Fixed Income Overview

Some Key Events in February 2011 and their implications

Inflation check: According to the Central Statistical organization (CSO), WPI inflation came down marginally to 8.2% in January 2011 v/s 8.4% in the previous month, due to a decline in inflation in manufactured products from 4.5% in December 2010 to 3.7% in January 2011. Inflation in primary articles was higher at 17.3% from 16.5% in the previous month, owing to higher food inflation at 15.6% in January 2011. Fuel prices went up marginally to 11.4% in January 2011 from 11.2% in December 2010.

Index of Industrial production (IIP): IP index growth slowed down to 1.6% Y-o-Y in December 2010 from 3.6 % (revised) in November 2010 on the back of high base effect. Manufacturing growth reached as low as 1% Y-o-Y in December 2010 and dragged the overall index down. The volatility in Cap goods continued and the index de-grew by 13.7% vis-à-vis 12.8% of positive growth in November 2010. Pick up in intermediate and consumer goods growth to 6.6% and 3.9% Y-o-Y respectively is encouraging for the economy, but the trend should continue going forward.

Railway Budget: Mamata Banerjee presented a populist Rail Budget for the year FY11 - 12E. Planned outlay shoots up 39% to highest ever value of Rs 576 bn. On passenger front she has reduced the booking fee by 50%. Budget maintains status quo on freight rates which leaves no impact on sectors like Cement, Steel, Power, Agriculture and Fertilizer among others.

Union Budget: The Union Budget is targeting a fiscal deficit of just 4.6% compared to 5.1% in FY11 and 6.4% in FY10. If achieved, this will be a significant move towards fiscal consolidation by the Union government. However, several key expectations from the budget did not go through. Chief amongst them are–no blanket increase in Excise and Service Tax, no hike in cigarette duties, only minimal increase in personal income tax slabs, no mention of FDI in retail or any other sector, no export boosting measures, etc. The government is expecting Real GDP to grow by almost 8.75 - 9.25% in FY12. Overall, we believe that while the

budget disappointed on key announcements, the market impact is still somewhat positive mainly due to lower deficit, overall no significant increase in taxes and an intention to bring in key reform legislations in the current financial year.

Market Summary

Feb continued to be a difficult month for India, as its underperformance vis-à-vis global peers continued, though the pace dropped. The big spoilsport was the 11% jump in Brent Crude, while the Budget at month end kept conviction low.

FMCG was the standout sector this month as its perceived defensive virtues in a falling market came to the fore. Added to the mix was the lack of any excise duty hike in cigarettes, whereas market was factoring in a 10% hike.

Still no respite in sight for the Realty sector as another 11% evaporated this month (33% fall in last 3 months) and governance continued to be a sore point. The tightness in the Money markets did not help funding pressures ease either.

Healthcare had a forgettable month in Feb as poor news flow hurt the sector. Aurobindo Pharma flip-flopped on an import alert letter from the US FDA and Ranbaxy disappointed on the quarterly results.

Source : Bloomberg

3

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

Scheme Performance as on 28/02/2011 (in %)Scheme Name 1 Month 3 Months 6 Months Since Inception (25-Jun-2010)IDBI Nifty Index Fund (Growth) -3.35 -7.57 -2.25 0.69S&P Nifty Index - TRI -3.22 -7.19 -1.09 1.77Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Dividend HistoryDate Rate Cum Dividend NAV

(in `)Ex Dividend NAV

(in `)IDBI Nifty Index Fund - Dividend15th Oct 2010 0.4000 11.5740 10.96281st Sept 2010 0.1200 10.2883 10.2886

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

Sector Classification

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

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

Fund Manager: Mr. Gautam Kaul

Inception Date: 25th June, 2010

NAV (as on 28th February 2011): Growth: ` 10.0687Dividend: ` 9.6029

Plans:• GrowthPlan• DividendPlan - Reinvestment - Payout

Asset Allocation Pattern:

InstrumentIndicative allocation

(% of total assets) Risk ProfileMin. Max.

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

95% 100% Medium to High

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

0% 5% Low to Medium

Application Amount:New Purchase – ` 5000/- and in multiples of ` 1/- thereafter

Min. Addl. Investment:` 1000/- and in multiples of ` 1/- thereafter

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

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

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

STP:Available

7.11%

19.48%

1.75%0.48%

7.43%

4.63%

6.38%1.20%8.06%0.62%3.07%

3.19%

10.64%

3.57%

4.29%

14.58%2.85%

AutombilesBanksCementConstruction ProjectConsumer Non DurablesFerrous MetalsFinanceGasIndustrial Capital GoodsMinerals/MiningNon - Ferrous Metals OilPetroleum ProductsPharmaceuticalsPowerSo�wareTelecom - Services

Security Name % To Net Assets*

EQUITYReliance Industries Ltd. 10.19%Infosys Technologies Ltd. 9.01%ICICI Bank Ltd. 6.97%ITC Ltd. 5.59%HDFC Ltd. 5.08%Larsen & Toubro Ltd. 5.07%HDFC Bank Ltd. 4.55%State Bank of India Ltd. 4.24%Tata Consultancy Services Ltd. 3.52%Bharti Airtel Ltd. 2.50%Tata Steel Ltd. 2.48%Tata Motors Ltd. 2.36%Oil & Natural Gas Corpn. Ltd. 2.28%Bharat Heavy Electricals Ltd. 1.97%Axis Bank Ltd. 1.95%Hindustan Unilever Ltd. 1.84%Mahindra & Mahindra Ltd. 1.82%Hindalco Industries Ltd. 1.62%Jindal Steel & Power Ltd. 1.59%Sterlite Industries ( India ) Ltd. 1.45%Wipro Ltd. 1.39%NTPC Ltd. 1.36%Dr. Reddy's Laboratories Ltd. 1.22%Gas Authority of India Ltd. 1.20%Tata Power Company Ltd. 1.16%Bajaj Auto Ltd. 1.07%Maruti Suzuki India Ltd. 1.00%


Sun Pharmaceuticals Industries Ltd. 0.99%Infrastucture Development Finance Co. Ltd. 0.96%

Cipla Ltd. 0.95%Cairn India Ltd. 0.92%Kotak Mahindra Bank Ltd. 0.89%Punjab National Bank Ltd. 0.88%Hero Honda Motors Ltd. 0.87%Power Grid Corporation of India Ltd. 0.87%Siemens Ltd. 0.80%HCL Technologies Ltd. 0.66%Sesa Goa Ltd. 0.62%Ambuja Cements Ltd. 0.60%ACC Ltd. 0.59%Steel Authority of India Ltd. 0.56%Jaiprakash Associates Ltd. 0.55%Reliance Infrastructure Ltd. 0.53%DLF Ltd. 0.48%Bharat Petroleum Ltd. 0.45%Ranbaxy Laboratories Ltd. 0.41%Reliance Power Ltd. 0.38%Reliance Communications Ltd. 0.35%Reliance Capital Ltd. 0.33%Suzlon Energy Ltd. 0.21%Equity Total 99.33%Cash Receivables 0.67%Total 100.00%

Portfolio as on 28/02/2011

* Rounded off to the nearest two digits after the decimal point.

4

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

Scheme Performance as on 28/02/2011 (in %)Scheme Name 1 Month 3 Months Since Inception (20-Sept-2010)IDBI Nifty Junior Index (G)* -3.76 -11.93 -17.85CNX Nifty Junior-TRI -3.66 -11.70 -17.59*Source: Accord FintechDisclaimer: Returns are of growth plan. Past Performance may or may not be sustained in the future.

Sector Classification

3.22%

21.64%

3.16%

4.49%

15.65%

3.20%1.96%

10.23%

1.36%

4.33%

3.60%

1.60%

2.22%

8.27%

1.34%3.77%

5.32% 3.98%

AutoBanksCementConstruction ProjectConsumer Non DurablesFerrous MetalsFertilisersFinanceHotelsIndustrial Capital GoodsIndustrial ProductsPesticidesPetroleum ProductsPharmaceuticalsPowerSo�wareTradingTransportation

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

Benchmark:CNX Nifty Junior Index (Total Returns Index)


Inception Date: 20th September, 2010

NAV (as on 28th February 2011): Growth: ` 8.2152Dividend: ` 8.2152

Plans:• GrowthPlan• DividendPlan - Reinvestment - Payout




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

95% 100% Medium to High

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

0% 5% Low to Medium



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

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

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

STP:Available


EQUITYAdani Enterprises Ltd. 5.32%Bank of Baroda Ltd. 5.06%Grasim Industries Ltd. 5.05%Asian Paints Ltd. 3.90%Shriram Transport Finance Company Ltd. 3.42%United Spirits Ltd. 3.33%Crompton Greaves Ltd. 3.22%JSW Steel Ltd. 3.20%Glaxosmithkline Pharmaceuticals Ltd. 3.18%UltraTech Cement Ltd. 3.16%Lupin Ltd. 3.13%Bank of India Ltd. 2.82%Rural Electrification Corporation Ltd. 2.69%Union Bank of India Ltd. 2.44%Canara Bank Ltd. 2.33%Cummins India Ltd. 2.18%Exide Industries Ltd. 2.17%Mundra Port and Special Economic Zone Ltd. 2.14%

Yes Bank Ltd. 2.11%The Federal Bank Ltd. 2.06%Tata Chemicals Ltd. 1.96%LIC Housing Finance Ltd. 1.95%Colgate Palmolive (India) Ltd. 1.89%Container Corporation of India Ltd. 1.84%Hindustan Petroleum Corporation Ltd. 1.83%GMR Infrastructure Ltd. 1.62%


United Phosphorus Ltd. 1.60%IDBI Bank Ltd. 1.57%Aditya Birla Nuvo Ltd. 1.48%Bharat Forge Ltd. 1.43%The Indian Hotels Co. Ltd. 1.36%Torrent Power Ltd. 1.34%Housing Development and Infrastructure Ltd. 1.32%Glenmark Pharmaceuticals Ltd. 1.21%Industrial Finance Corporation Ltd. 1.16%Oracle Financial Services Software Ltd. 1.16%Indiabulls Real Estate Ltd. 1.12%Bharat Electronics Ltd. 1.11%Andhra Bank Ltd. 1.10%Mphasis Ltd. 1.09%Ashok Leyland Ltd. 1.05%Power Finance Corporation Ltd. 1.01%Indian Overseas Bank Ltd. 0.98%Tech Mahindra Ltd. 0.76%Patni Computer Systems Ltd. 0.76%Biocon Ltd. 0.75%Syndicate Bank Ltd. 0.69%Corporation Bank Ltd. 0.50%Punj Lloyd Ltd. 0.43%Mangalore Refinery & Petrochemicals Ltd. 0.39%Equity Total 99.32%Cash Receivables 0.68%Total 100.00%



5

* For rating disclaimers, please refer to page 7

Rated ‘CARE AAAf ’ by CARE* Rated ‘AAAf ‘ by CRISIL*IDBI Liquid Fund(An open-ended liquid scheme)

Scheme Performance as on 28/02/2011 (in %)Scheme Name 1 Week 2 Week 1 Month 3 Months 6 Months Since Inception (9-July-2010)IDBI Liquid Fund (G) 7.95 7.92 7.89 7.70 7.18 6.95Crisil Liquid Fund Index 8.06 8.07 7.89 7.60 6.97 6.69

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

Dividend HistoryDate Rate Cum Dividend NAV*

(in `)Ex Dividend NAV

(in `)IDBI Liquid Fund - Weekly Dividend27th Feb 2011 1.1926 1001.3119 1000.220020th Feb 2011 1.1901 1001.3091 1000.220013th Feb 2011 0.0118 10.0131 10.00226th Feb 2011 0.0117 10.0130 10.002230th Jan 2011 0.0117 10.0130 10.002223rd Jan 2011 0.0119 10.0131 10.002216th Jan 2011 0.0115 10.0127 10.00229th Jan 2011 0.0115 10.0127 10.00222nd Jan 2011 0.0121 10.0130 10.0022IDBI Liquid Fund - Monthly Dividend25th Feb 2011 5.2520 1006.4755 1000.000025th Jan 2011 0.0490 10.0604 10.0000

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

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

Benchmark:CRISIL Liquid Fund Index


Inception Date: 9th July, 2010

NAV (as on 28th February 2011): Growth ` 1044.5640Daily Dividend ` 1000.0000Weekly Dividend ` 1000. 4389Monthly Dividend ` 1000.6492

Plans:•GrowthOption•DividendOption - Daily Dividend - Weekly Dividend - Monthly Dividend




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

50% 100% Low

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

0% 50% Low to Medium

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



Load Structure:Entry Load: Not ApplicableExit Load : Nil

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

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

STP:Available

Security Name Rating % To Net

Assets*CERTIFICATES OF DEPOSITCorporation Bank P1+ 8.53%UCO Bank P1+ 6.09%Central Bank of India PR1+ 5.12%State Bank of India P1+ 4.88%Axis Bank Ltd. P1+ 3.66%Punjab National Bank PR1+ 3.65%Canara Bank P1+ 2.68%Bank of India P1+ 2.45%Bank of Maharashtra PR1+ 2.43%Oriental Bank of Commerce P1+ 1.23%Syndicate Bank Ltd. PR1+ 1.23%ICICI Bank Ltd. PR1+ 1.22%Indian Overseas Bank A1+ 1.22%Allahabad Bank Ltd. P1+ 1.22%Karnataka Bank Ltd. A1+ 1.22%Andhra Bank Ltd. PR1+ 1.22%Central Bank of India P1+ 0.24%Bank of Maharashtra P1+ 0.24%COMMERCIAL PAPERSEdelweiss Capital Ltd. P1+ 6.17%


Assets*Infrastructure Leasing and Finance A1+ 6.11%

SBI Global Factors Ltd. P1+ 4.89%Indian Oil Corporation Ltd. P1+ 4.88%Gruh Finance Ltd. P1+ 4.88%ICICI Securities Primary Dealership Ltd. P1+ 4.39%

Srei Equipment Finance Pvt. Ltd. PR1+ 3.67%Aditya Birla Nuvo Ltd. A1+ 3.67%Aditya Birla Finance Ltd. A1+ 2.44%Sterlite Industries ( India ) Ltd. P1+ 2.44%National Bank of Agriculture & Rural Development P1+ 1.95%

Reliance Capital Ltd. A1+ 1.22%Securities Trading Corporation of India Ltd. A1+ 1.22%

JM Financial Products Pvt. Ltd. P1+ 1.22%Apollo Tyres P1+ 1.22%Kesoram Industries Ltd. PR1+ 0.98%Tata Motors P1+ 0.24%Cash "n" Call Assets & Receivables -0.11%TOTAL 100.00%


YTM : 8.10% Average Maturity : 21.37 days

Modified Duration : 21.37 days


6

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

Scheme Performance as on 28/02/2011 (in %)Scheme Name 1 Week 2 Week 1 Month 3 Months Since Inception (3-Sept-2010)IDBI Ultra Short Term Fund (G) 8.46 8.42 8.42 8.14 7.67

Crisil Liquid Fund Index 8.06 8.07 7.89 7.60 7.01

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

Dividend History

Date Individual Dividend (in `)

Institutional Dividend

(in `)

Cum Dividend NAV* (in `)

Ex Dividend NAV (in `)

IDBI Ultra Short Term Fund - Weekly Dividend

22nd Feb 2011 0.0141 0.0132 10.0161 10.0023

15th Feb 2011 0.0141 0.0132 10.0161 10.0023

8th Feb 2011 0.0141 0.0132 10.0161 10.0023

1st Feb 2011 0.0141 0.0132 10.0161 10.0023

25th Jan 2011 0.0145 0.0135 10.0165 10.0022

18th Jan 2011 0.0144 0.0134 10.0164 10.0024

11th Jan 2011 0.0143 0.0133 10.0163 10.0024

4th Jan 2011 0.0145 0.0135 10.0165 10.0023

IDBI Ultra Short Term Fund - Monthly Dividend

28th Feb 2011 0.0628 0.0585 10.0715 10.0071

27th Jan 2011 0.0597 0.0557 10.0680 10.0045

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

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

Benchmark:CRISIL Liquid Fund Index


Inception Date: 3rd September, 2010

NAV (as on 28th February 2011): Growth ` 10.3739Daily Dividend ` 10.0000Weekly Dividend ` 10.0163Monthly Dividend ` 10.0071

Plans:•GrowthOption•DividendOption - Daily Dividend - Weekly Dividend - Monthly Dividend



(% of total assets)Risk

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

80% 100% Low to Medium

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

0% 20% Medium

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



Load Structure:Entry Load: Not ApplicableExit Load : Nil

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

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

STP:Available

* For rating disclaimers, please refer to page 7

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


Assets*CERTIFICATES OF DEPOSITCanara Bank P1+ 15.10%Punjab National Bank PR1+ 8.62%Central Bank of India PR1+ 8.22%UCO Bank P1+ 6.48%The Federal Bank Ltd. PR1+ 2.17%Bank of India P1+ 2.17%Indian Overseas Bank A1+ 2.16%Bank of Maharashtra P1+ 2.16%ING Vysya Bank Ltd. P1+ 1.44%Allahabad Bank Ltd A1+ 1.02%Syndicate Bank Ltd P1+ 0.87%Andhra Bank Ltd. P1+ 0.43%COMMERCIAL PAPERSICICI Securities P1+ 6.50%Mahindra & Mahindra Fin Ser Ltd P1+ 6.49%ICICI Securities Primary Dealership Ltd. P1+ 5.17%


Assets*Aditya Birla Finance Ltd A1+ 4.35%Srei Equipment Finance Pvt. Ltd A1+ 4.34%Redington (India) Ltd A1+ 3.90%L & T Infrastucture Finance Co Ltd A1+ 2.17%

Srei Equipment Finance Pvt. Ltd PR1+ 2.17%L & T Finance Ltd PR1+ 2.17%Motherson Sumi Systems Ltd. A1+ 2.17%Securities Trading Corporation of India Ltd A1+ 2.17%

Apollo Tyres P1+ 2.16%Tata Motors Finance A1+ 2.14%Kotak Mahindra Prime Ltd P1+ 1.74%National Bank of Agriculture & Rural Development P1+ 1.30%

ECL Finance Ltd P1+ 0.87%Edelweiss Capital Ltd. P1+ 0.35%Cash "n" Call Assets & Receivables -0.98%TOTAL 100.00%


YTM : 8.44% Average Maturity : 29.07 days

Modified Duration : 29.07 days


7

The products on CNX Nifty Junior Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty,

express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the products linked to CNX Nifty Junior Index or particularly in the ability

of the CNX Nifty Junior Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Nifty Junior Index in the Scheme Information Document.

*CARE’s fund credit quality rating is not a recommendation to purchase, sell, or hold a security / fund. It neither comments on the current market price, suitability for a particular investor nor on the prospective

performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The ratings do not address the funds ability to meet the payment obligations to the investors. The ratings are

based on current information furnished to CARE by the issuer or obtained by CARE from sources it considers reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information

and is not responsible for any errors or omissions or for the results obtained from the use of such information. CARE does not perform an audit in connection with any rating and may, on occasion, rely on unaudited

information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Funds rated by CARE have paid a rating fee.

CRISIL: The assigned rating AAAf is valid for “IDBI Liquid Fund” and “IDBI Ultra Short Term Fund”. The rating of CRISIL is not an opinion of the Asset Management Company’s willingness or ability to make

timely payments to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments.

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

Tel.: 079 – 64502167 / 68. Fax : 079 – 26400844.

Bangalore : IDBI Mutual Fund, IDBI House, 3rd Floor, IDBI Mutual Fund No. 58, Mission Road, Bangalore - 560 027. Tel.: 080-41495263 / 41409786 Fax : 080-41495264.

Chandigarh : IDBI Mutual Fund, IDBI Bank Ltd., 3rd Floor, SCO 72/73, Bank Square, Sector - 17B, Chandigarh - 160 016. Tel.: 0172-5076705 Fax: 0172-5086705.

Chennai : IDBI Mutual Fund, Ground Floor, Lancor Westminster Building, Old No. 108, New No. 70, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004. Tel.: 044-43456113 Fax: 044-43456110.

Delhi : IDBI Mutual Fund, IDBI Bank, 5th Floor, Red Cross Building, Red Cross Road, Parliament Street, New Delhi - 110 001. Tel.: 011-66130050 Fax: 011-66130051.

Hyderabad : IDBI Mutual Fund, 3rd Floor, 5-9-89/1, Chapel Road, Hyderabad - 500 001. Tel.: 040 - 66663559 Fax: 040 - 66663889

Indore : IDBI Mutual Fund, IDBI Bank Ltd., Ground Floor, Alankar Chambers, Ratlam Kothi, Indore - 452 001. Tel.: 0731-6679127 Fax: 0731-2510101

Kochi : IDBI Mutual Fund, IDBI Bank, Corporate Office, Near Passport Office, Panampally Nagar, Kochi - 680 366. Tel.: 0484 - 6462112.

Kolkatta : IDBI Mutual Fund, IDBI House, 6th floor, 44, Shakespeare Sarani, Kolkata - 700 017. Tel.: 033- 66337627 Fax: 033-66337629

Lucknow : IDBI Mutual Fund, IDBI Bank, 2 M G Marg, Kisan Sekhari Bhawan, Hazratganj, Lucknow - 226 001. Tel.: 0522- 2202863 / 6500103

Mumbai : IDBI Mutual Fund, Mittal Court, 2nd Floor, C-Wing, Nariman Point, Mumbai - 400021. Tel.: 022-67498397 Fax: 022-67498399.

Pune : IDBI Mutual Fund, IDBI House, 4th Floor, Dnayaneshwar, Paduka Chowk, S C Road, Shivaji Nagar, Pune - 411 004. Tel.: 020-66057037/36 Fax: 020-66057035

Contact us

Corporate OfficeIDBI Asset Management Limited

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

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

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

Documents

MARCH 2011 - IDBI Mutual · MARCH 2011 Dear Investors, ˜e ... foreign investors can now invest in Indian ... Primary articles’ inflation also fell to 14.59% v/s 17.26%, on the