Sundar Ram Mutual Fund

Project Report

On

“COMPARITIVE ANALYSIS BETWEEN THE

SUNDARAM MUTUAL FUND AND OTHER MUTUAL FUNDS

In

In partial fulfillment of MBA Degree Summer Training Project

External Guidance by: Submitted to:

Mr.S.P.Krishna Kumar

Incharge-North

Sundram Direct

Submitted by :

Kawalpreet singh

MBA/1106/09

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY,BIRLA INSTITUTE OF TECHNOLOGY,

MESRAMESRA

TABLE OF CONTENTS

1. Acknowledgement : 03

2. Preface :

3. Declaration :

4. Certificate by Organization :

5. Problem Definition :

6. Objective/ Purpose of the Project :

7. Introduction :

8. Theoretical Background :

9. Company Profile :

10. Research Methodology :

11. Study Methodology Used :

12. Survey and Sampling techniques :

13. Hypothesis :

14. Findings :

a) Sundaram Debt Funds

b) Sundaram Equity Funds

c) Sundaram Hybrid Funds

15. Analysis :

a) Comparison of Sundaram Mutual Fund with other funds of Sundaram

b) Comparison of Sundaram Mutual Fund with the Market

c) Comparison of Sundaram Mutual Fund with other Mutual Funds as

ranked and rated

16. Limitations :

17. Recommendations :

18. Conclusion :

19. Bibliography :

2

Acknowledgement

While working as project trainee at Sundram Finance Limited at Regional Office at

Delhi, I stand immensely indebted to my guide in Sundram Finance, Mr. S.P.Krishna Kumar

(Incharge-North Region, Sundram Direct) for his invaluable help. His contribution has helped a great

deal in timely completion of this project.

His full cooperation and support has helped me in obtaining great deal of knowledge about Mutual

Funds.

My sincere thanks to other members of Sundram Finance who gave their valuable

guidance and help in completing the project.

My special thanks to the clients of Sundram Finance who patiently heard about the

schemes and plans of mutual funds and gave their responses which helped me in gaining practical

knowledge as to deal with Mutual Funds.

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Preface

MBA program is one of the most reputed professional courses in the field of Management. Summer

Training is an integral part of MBA. As a complementary to that every trainee has to submit a report

on the research work conducted in that institute.

This report is thus prepared for the summer summer training project work done at Sundram Finance

Limited, Delhi. The topic of the project is, “Comparison between Sundaram Mutual Fund and other

Mutual Fund”.

Investment means putting your money to work to earn more money. If done wisely it can help to

meet one's financial goals like buying a new house, paying for a college education, education,

enjoying a comfortable retirement or whatever is important to an individual.

One needs to make decisions about how much he/she wants to invest and where to invest. To

choose he needs to know current good options available and their relative risk exposures. These help

are given to a client in Sundram Finance Limited as to in which Mutual Fund they can invest and what

risks are related to it. They manage all the respected returns of their clients and timely inform them for

the switching to be done between funds in cases of expected downfall in returns of their Mutual Funds

in future.

This report is an attempt to present a report on account of interview and survey with the

customers and consumers.

Vijay Shanker Kumar Surendra Kumar Paswan

MBA /1024/08 MBA/1063/08

BIT (MESRA) BIT (MESRA)

4

DECLARATION

I, Mr. Vijay Shanker Kumar& Surendra Kumar Paswan

Hereby declare that this project report is the record of authentic work carried out by

me during the period from May 30th to July 10th and has not been submitted to any

other University or Institute for the award of any degree / diploma etc.

Vijay Shanker Kumar Surendra Kumar Paswan

MBA/1024/08 MBA/1063/08

( BIT Mesra) (BIT Mesra)

Date: Date:

Place: Place:

5

Certificate by the Organization:

This is to certify that Mr. Vijay Shanker Kumar & Mr. Surendra Kumar Paswan,.

pursuing Master of Business Administration at Birla Institute of Technology, Mesra, Ranchi

has worked under my supervision and guidance on his dissertation entitled “Comparative

Analysis Between The Sundram Mutual Fund And Other Mutual Funds” at Sundram

Finance Limited, Delhi from May 30th 2009 to July 10 th 2009. ” To the best of my

knowledge this is an original piece of work.

Mr.S.P.Krishna Kumar

Incharge-North

Sundram Direct.

Sundram Finance Limited

New Delhi-110001.

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Problem Definition Investment Planning : Investment means putting money to work to earn more money. If its

done wisely, it can help one meet their financial goals like buying a new house, paying for a college

education, enjoying a comfortable retirement, or whatever is important to you. One does not have tot

be wealthy to be an investor. Investing even a small amount can produce considerable rewards over

the long-term, especially if they does it regularly. But one needs to make decision about how much

one wants to invest and where he wants to invest it. To choose wisely, one needs to know the

investment options thoroughly and their relative risk exposures.

Who needs investment planning :

Investment planning is necessary for all individuals to achieve their financial goals. One

has to plan their limited resources to avail the maximum benefit out of them. People should plan their

investments to fulfill major needs like:

Financial Protection

Career Building

Asset Purchase

Marriage

Children Education

Retirement Funding etc.

Investment Planning is the most important part of financial planning, which is

nothing but a holistic approach to meet ones life goals. Choosing the best investment depends on

personal circumstances as well as general market conditions. In each case, the right investment is a

balance of three things : Liquidity, Safety, and Return, which form the basis of selection:

Liquidity – How accessible is ones money? How easily can an investment can be converted to cash,

since part of ones invested money must be available to cover any financial emergencies.

Safety – What is the risk involved ? The biggest risk is the risk of losing the money invested.

Another equally important risk is that ones investments will not provide enough growth or income to

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offset the impact of inflation, which could lead to a gradual increase in the cost of living. There are

additional risks as well (decline in economic growth). But the biggest risk of all is not investing at all.

Return – What can be expected to get back on amount invested? Investment are made for the

purpose of generating returns. Safe investments often promise a specific, though limited return. Those

that involve more risk offer the opportunity to make – or – lose- a lot of money.

Risk and Returns :

Risk is the chance one takes in making or losing money on their investments.

Greater the risk, the more one stands to gain or lose. There is no such thing as zero risk. There are

always factors we cannot control like recession, an oil embargo or high inflation.

The range of investment choices and their relative risk factors is often described as a

pyramid. The base of investment pyramid consists of those investments only, which are highly liquid

and safe. The mid- segment of the pyramid should comprise limited and moderate risk investments,

and only a small percentage of total portfolio on the top portion of the pyramid should be invested in

highest risk category. Expected returns will also increase accordingly as one move up the pyramid.

Investment Approaches : To options chosen to put money in, reflects the investment strategy

used. Most people adopt the following approaches :

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i) Moderate : Take moderate risk by investing in mutual funds, bonds, select blue chip

equity shares etc.

ii) Conservative : Take only limited risk by concentrating on secure, fixed- income

investments etc.

iii) Aggressive : Take major risk on investments in order to have higher returns like

speculative or unpredictable equity share etc.

Types of investment risks: There are different risks with different types of investments :

i) Credit Risk : The risk is that the issuer of the security will default, or not repay the

principal amount. Valid for corporate bonds etc.

ii) Liquidity Risks : The risks is that the security is not sellable or tradable in the market, in

other words money gets stuck unnecessarily creating an asset- liability mismatch. Valid

for bonds, stocks etc.

iii) Market Risks : The risk is that financial markets are volatile in nature. Volatility means

sudden swings in value from high to low, or the reverse.

Mutual Funds and all Securities Investments are subject to market risks and there is no assurance

or guarantee that the Fund's objectives will be achieved.

As with any investment in stocks and shares, the NAV of the units issued under the schemes can

go up or down depending upon the factors and forces affecting the Capital market.

Past performance of the Sponsor / Mutual fund does not guarantee the future performance of the

schemes of the Mutual Fund.

The names of the schemes do not, in any manner, indicate either the quality of the schemes, their

future prospects or their returns.

The NAV of the schemes may be affected by settlement periods and transfer procedures.

Trading volumes may restrict the liquidity of the scheme's investments. Investors in the schemes

are not being offered any guaranteed returns.

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Objective/ Purpose of the Project

The Objective of this project is to help investors analyze and compare various funds and then

select the one which best suits their requirements and risk taking capabilities.

This project compares the Sundaram Mutual Funds with other Funds of similar kind to help

investors analyze their funds ranking and returns they will get, with those of Sundaram Funds.

This project in no way aims to show other funds poor for investing; as all Mutual Funds are

subject to various risks attached with them so they may fluctuate on short durations.

This project helps investors gain knowledge of Sundaram Funds and an overall comparisons of

returns provided with all the other funds of similar kind.

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Introduction

Mutual funds: A mutual fund is a professionally-managed form of collective investments that pools

money from many investors and invests it in stocks, bonds, short-term money market instruments,

and/or other securities. In other words we can say that A Mutual Fund is a trust registered with the

Securities and Exchange Board of India (SEBI), which pools up the money from individual /

corporate investors and invests the same on behalf of the investors /unit holders, in equity shares,

Government securities, Bonds, Call money markets etc., and distributes the profits.

Mutual fund is a mechanism for pooling the resources by issuing units to the

investors and investing funds in securities in accordance with objectives as disclosed in offer

document. Investments in securities are spread across a wide cross-section of industries and sectors

and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the

same direction in the same proportion at the same time. Mutual fund issues units to the investors in

accordance with quantum of money invested by them. Investors of mutual funds are known as

“Unitholders”.

The profits or losses are shared by the investors in proportion to their investments. The

mutual funds normally come out with a number of schemes with different investment objectives,

which are launched from time to time. A mutual fund is required to be registered with Securities and

Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from

the public. There are three basic categories : Equity, Debt, and Cash. They are also known as three

basic asset classes.

Equity : or Stocks are ownership shares investors buy in a corporation. When equity investments

are made, they become part owners( to the extend of shareholding) of the company where

invested in. There is no particular rate of return indicated while investing. The current value of

holding is reflected in the price at which the stock / share is traded in the stock markets. Therefore

this is relatively riskier form of investment.

Equity Funds : A Mutual Funds Scheme that achieves the benefits of diversification by

investing in the stocks of companies across a large number of sectors. As a result, it minimizes the

risk of exposure to a single company or sector is called Equity Fund

Debt instruments : Also known as bonds are loans investors make to corporations and

governments. They promise a fixed return at the time of making the investment. Also the promise

of getting the money back is dependent on who is making the promise. Therefore it provides with

the promise that principal will be returned along with the interest payable thereof.

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Floating-Rate Debt Fund : A fund comprising of bonds for which the interest rate is adjusted

periodically according to a predetermined formula, usually linked to an index

Cash : investments include money in bank savings accounts and other liquid investment options.

Balanced / Hybrid Fund : The aim of Balanced Funds is to provide both growth and regular

income as such Schemes invest both in equities and fixed income securities in the proportion

indicated in their offer documents. They generally invest 40-60% in equity and debt instruments

are called Balanced funds.

Categories of mutual funds:

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COMPARISON OF DIFFERENT INVESTMENT OPTIONS V/S INCOME FUNDS

Parameters INCOME fundsBank

DepositsPost office

MISCompany

f.d.

ReturnsReturns are not assured.They

depend on portfolio and interest rate movemennt

5% (for 1 year)

8% (for 6 years)

6% -7% (for 1 year)

SafetyDebt funds are safe as they

invest in debenturesHigh High

Low to medium

LiquidityVery high High Low Low

Diversification of funds

Yes No No No

Capital appreciation

high probablity of capital appreciation.

No No No

Tax benefit

Tax free in the hands of the investor. MF pays a Dividend

Distribution Tax of 12.5% plus a surcharge of 2.5% (Individual

case) and 20% plus surcharge of 2.5 % (corporate case)

Tax benefit available U/S 80 L TDS on interest

above Rs. 5000

No TDS Tax benefit available U/S 80 L

Fully taxable.

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Debt Funds :

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 Sundaram Bond Saver, Sundaram Income Plus,

Sundaram Select Debt, Sundaram Money Fund, Sundaram Floating Rate Fund.

Equity Funds:

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 capital.

The funds offered under this category are : Sundaram Growth fund, Sundaram Select Focus,

Sundaram Select Mid- Cap, Sundaram India Leadership Fund, Sundaram S.M.I.L.E Fund.

Balanced Funds :

Balanced Funds are more evenly invested in equities and income securities. Balanced and equity

– income funds are suitable for conservative investors who want high current yield with some

growth. If one seeks to generate long term capital appreciation and current income, an investment

in the balanced fund would be ideal. It gives one an exposure to the stock market without the

entire risk of the stock market.

The funds offered under this category are the Sundaram Monthly Income Plus, Sundaram Balanced Fund.

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Theoretical Background

About Mutual Funds:

History of the Indian Mutual Funds Industry:

The mutual funds industry in India started in 1963 with the formation of Unit Trust of India, as the

initiative of the Government of India and Reserve Bank of India. The history of the Mutual Funds in

India can be broadly divided into four distinct phases.

First Phase: - 1964 – 87

Unit trust of India (UTI) was established on 1963 by an act of parliament . It was set up by

the Reserve Bank of India and functioned under the Regulatory and administrative control of the

reserve bank of India. In 1978 UTI was delinked from the RBI and the industrial development Bank

of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme

launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under

management.

Second Phase: 1987 – 93 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks

and Life insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI

Mutual Fund was the first non- UTI Mutual Fund established in Jnue1987, followed by, Canbank

Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund

(Nov89), Bank of India (Jun90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual

fund in June 1989, and GIC had set up its Mutual Fund in December 1990.

At the end of 1993, the Mutual Fund industry had assets under management of Rs. 47,004 crores.

Third Phase: 1993 – 2003 (Entry of Private Sector Funds)

With the entry of private sector Funds in 1993, a new era started in the Indian Mutual

Fund Industry, giving the Indian investor a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Funds regulations came into being, under which all mutual funds, except UTI

were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin

Templeton) was the first private sector mutual fund registered in July 1993.

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The 1993, SEBI Mutual Fund Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the

SEBI Mutual Funds Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds

setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at

the end of January 2003, there were 33 mutual Funds with the total Assets of Rs. 1,21,805 crores. The

Unit Trust of India with Rs. 44,541 crores of Assets under management was way ahead of other

mutual funds.

Fourth Phase : Since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the specified undertaking of the Unit trust of India with

the Asset Under management of Rs.29,835 crores as at the end of January 2003, representing broadly,

the assets of US64 Scheme, assured return and certain other schemes. The specified Undertaking of

Unit trust of India, functioning under an administrator and under the rules framed by Government of

India and does not come under the purview of the Mutual Fund Regulations.

.

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Concept

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 then invested in capital market instruments such

as shares, debentures and other securities. The income earned through these investments and the

capital appreciation realised are shared by its unit holders in proportion to the number of units owned

by them. 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 basket of securities at a relatively low

cost.

Advantages of Mutual Fund :

The advantages of investing in a Mutual Fund are:

· Professional Management

· Diversification

· Convenient Administration

· Return Potential

· Low Costs

· Liquidity

· Transparency

· Flexibility

· Choice of Schemes

· Tax Benefits

· Well regulated

Sales Price :

It is the price one pays when they invest in a scheme. Also called Offer Price. It may include

a sales load.

Repurchase Price :

It is the price at which a close-ended schemes repurchases its units and it may include a

back-end load. This is also called Bid-Price.

Redemption Price :

It is the price at which open-ended schemes repurchase their units and close-ended

17

schemes redeems their units on maturity. Such prices are NAV related.

Sales Load :

It is a charge collected by a scheme when it sells the units. Also called as 'Front-End' load.

Schemes that do not charge a load are called ' No Load' schemes.

Repurchase or 'Back-End' load :

It is a charge collected by a scheme when it buys back the units from the unit holders.

The flowchart below describes broadly the working of a mutual fund:

INVESTOR

Passed Pool

Back To Money with

RETURNS FUND MANAGER

Generates Invest in

SECURITIES

Mutual Funds offer good investments opportunities to the investors. They carry certain risks. Mutual

funds is a mechanism for pooling the resources by issuing units to the investors and investing funds in

securities in accordance with objectives as disclosed in offer document.

✔ Diversification of funds reduces the risks because all stocks may not move in the same direction in

the same proportion at the same time.

✔ Mutual funds issues units to the investors in accordance with quantum of money invested by them.

✔ Investors of mutual funds are known as “Unit holders”.

✔ The profits or losses are shared by the investors in the proportion to their investments.

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✔ Mutual Funds comes out with number of schemes with different investment objectives which are

launched from time to time.

✔ It is required to be registered with (SEBI) Securities and Exchange Board of India.

✔ History of Mutual funds and role of SEBI :

✔ In 1963, Unit trust of India was upon the first mutual funds set up in India.

✔ US64 is the first mutual funds.

✔ In 1990's Govt allowed public sector banks and institutions to set up mutual funds.

✔ In 1992,SEBI Act was passed.

✔ Objective of SEBI – To protect the interest of investors in securities and to promote the

development of and to regulate the securities market.

✔ SEBI formulates policies and regulates the mutual Funds to protect the interest of the investors.

✔ SEBI notified regulations for mutual funds in 1993.

✔ Then mutual funds sponsored by private sector entities were allowed to enter the capital market.

✔ All Mutual Funds whether promoted by public sector, private sector or foreign entities are

governed by the same set of regulations.

✔ All mutual Funds are monitored and inspected by SEBI.

✔ Risks associated with mutual funds schemes are of same type.

✔ UTI is not registered with SEBI as a mutual fund.

Mutual Funds set up.:-->

✔ Mutual fund is set up in form of trust. It has sponsor, trustees, asset management company and

custodian.

✔ Trust is established by a sponsor or more than one sponsor who is like a promoter of a company.

The trustees of the mutual fund hold its properties for the benefit of the unit

holders.

✔ AMC approved by SEBI manages the funds by making investments in various types of securities.

✔ Custodian, who is registered with SEBI, holds the securities of various schemes of the funds in its

custody.

✔ The trustees are vested with the general power of superintendence and direction over AMC. They

monitor the performance and compliance of SEBI Regulations by the mutual funds.

✔ 2/3 of the directors of trustees company or board of trustees must be independent . i.e. They should

not be associated with the sponsor.

✔ 50% of AMC directors must be independent.

✔ All mutual funds are required to be registered with SEBI before they launch any scheme.

Net Asset Value (NAV):

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✔ The performance of a particular scheme is denoted by NAV.

✔ NAV is the market value of the securities held by the schemes.

✔ Market Value of securities changes everyday; therefore NAV also changes.

✔ NAV per unit is the market value of securities of a scheme divided by the total number of units of

the scheme.

✔ NAV is required to be disclosed by the mutual fund on regular/daily/weekly basis.

✔ The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly

calculated daily based on the total value of the fund divided by the number of shares currently

issued and outstanding. The value of all the securities in the portfolio in calculated daily. From

this, all expenses are deducted and the resultant value divided by the number of units in the fund is

the fund’s NAV.

NAV = Total value of the fund---------------------. No. of shares currently issued and outstanding

Types of Mutual Funds:

1) Schemes according to Maturity period:

A) Open-ended Fund Scheme:

It is one that is available for subscription and repurchase on a continue basis. They don't have a

fixed maturity period. They can easily buy and sell at NAV related prices. Their key feature is

liquidity.

B) Close-ended Fund Scheme:

They have a stipulated maturity period e.g. 5-7 years. They are open for subscription only

during a specified at the launch of scheme. They can invest at the initial public issue .Later they

can buy/sell on the stock exchange. Some of them have exit the route option of selling back to the

mutual fund.

2) Schemes according to investment objectives:

A) Growth/Equity oriented Scheme:

The aim of it is to provide capital appreciation over medium to long term. They have high

risks. Their are different options :

-- Dividend option,

-- Capital Appreciation

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-- The investor.

They can later change the option combination.

B) Income/Debt Oriented Scheme:

-- The aim of this is to provide regular and steady income to investor.

-- They invest in fixed income securities as, bonds, corporate debentures, government Securities

and money market instruments.

-- They are less risky.

-- They are not affected because of fluctuations in equity market.

-- If the interest rates in the country changes it affects NAV.

-- If the interest rates fall, NAV increases in short run and vice versa.

C) Balanced Funds:

Their aim is to provide both growth and regular income. They give moderate growth to the

investors. They generally invest 40-60% in equity and debt.

D) Money market or Liquid funds :

They are income funds and their aim is to provide easy liquidity,preservation of capital and

moderate income. They invest in short term instruments as treasury bill certificates of deposits,

commercial paper and inter bank call money etc.. Their returns fluctuate very less.

E) Gilt Funds :

These funds invest exclusively in government securities. Government securities have no

default risk.

F) Index Funds:

They replicate the portfolio of a particular index e.g. BSE, NSE . They invest in the securities

in the same weight comprising of an index.

Exchange traded index funds are traded on the stock exchanges.

Sector specific Funds :--

These are the schemes/ funds which invest in the securities of only these sectors or industries

21

as specified in the offer document. e.g. FMCG, S/W etc. The returns in these funds are dependent on

the performance of their respective sectors. They are more risky.

Tax saving Schemes :

These schemes offer tax rebates to the investors, under specific provisions of the Income Tax

Act 1961. as the Govt offers tax incentives for investment in specified avenues. E.g. ELSS(Equity

Linked Savings Schemes),pension Schemes. They are like Growth/Equity oriented funds.

Costs associated:

Expenses:

AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries,

advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges

Rs1.50 for every Rs100 in assets under management. A fund's expense ratio is typically to the

size of the funds under management and not to the returns earned. Normally, the costs of

running a fund grow slower than the growth in the fund size - so, the more assets in the fund,

the lower should be its expense ratio

Loads:

Entry Load/Front-End Load (0-2.25%) - it’s the commission charged at the time of buying

the fund to cover the cost of selling, processing etc.

Exit Load/Back- End Load (0.25-2.25%) - it is the commission or charged paid when an

investor exits from a mutual fund; it is imposed to discourage withdrawals. It may reduce to

zero with increase in holding period.

Load or No Load Fund:

-- Load fund is one that charges a percentage of NAV for entry or exit. Each time one buys or sells

units in the fund, a charge will be applicable. These charges generally affect their yields/returns.

Efficient funds may have higher returns inspite of load.

A no load fund is one that does not charge for entry or exit. The investors may enter the fund/scheme

at NAV and no additional charges are payable on purchase or sale of units.

Can a Mutual Fund impose fresh load or increase the load beyond the level mentioned

in the offer documents.

No, Mutual Fund cannot increase the load beyond the level mentioned in the offer document. Any

change,will be applicable only to prospective investments. In case of new loads,the mutual funds are

required to amend their offer document so that the new investors are aware of loads at the time of

22

investments.

Sales or repurchase/ Redemption Price:

The price or NAV a unit holder is charged while investing in an open-ended scheme is called sales

price. It may include sales load if applicable. Repurchase or redemption price is the price or NAV at

which an open-ended scheme purchase or redeems its units from the unit holders. It may include exit

load, if applicable.

Assured returns Scheme:

These assure a specific returns to the unit holders irrespective of performance of the scheme. A

scheme cannot promise returns unless such returns are fully guaranteed by the sponsor or AMC and

this is required to be disclosed in the offer document. Some schemes assure returns one year at a time

and they review and change it at the beginning of the next year.

Can a mutual fund change the asset allocation while deploying funds of investors?

Any manager can change the asset allocation i.e. he can invest higher or lower percentage of the

funds in equity or debt instruments compared to what is disclosed in the offer documents. It can be

done on a short term basis on defensive considerations. If change is on permanent basis they are

required to inform the unit holders and give options to exit at prevailing NAV without any load.

Investing in a scheme of a mutual fund:

Mutual Fund normally comes out with an advertisement in newspapers publishing the date of launch

of the new schemes. Investors can also contact the agent and distributors of mutual funds who are

spread all over the country for necessary information and application forms. Forms can be deposited

with mutual fund through the agents and distributors who provide such services. Now, post offices

and banks also provide such services. It should be noted that these schemes being marketed by banks

and post offices should not be considered as their own schemes, no assurance of returns is given by

them.

Can NRI invest in Mutual Funds:

Yes, Non resident Indians can also invest in mutual funds.

How much should one invest in debt or equity oriented schemes:

An investor should take into account his risk taking capacity age factor etc. The schemes invest in

different type of securities as disclosed in the offer and they have different returns and risks.

How to fill up the application form of a Mutual Fund:

An investor must mention clearly his name, address, number of units applied for, bank account

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number etc. Any changes must also be stated from time to time.

What should an investor look into an offer document:

An abridged offer document is given to the investor. The application form for subscription is a part of

offer document . SEBI has prescribed minimum disclosures in offer document . Investor must read the

main features of the schemes, risk factor, initial issue expense, entry or exit loads, sponsors track

record, educational qualifications, work experience etc.

Certificate or statement of account:

Mutual Funds are required to dispatch certificates or statements of account within 6 weeks from the

date of closure of the initial subscription of the scheme. In case of close- ended schemes the investor

would get either a damant account statement or unit certificates as these are traded in the stock

exchanges. In case of open- ended schemes a statement of account is issued by the mutual fund within

30 days from the date of closure of IPO of the scheme. The procedure of repurchase is mentioned in

the offer document.

How long will it take for transfer of units after purchase from stock markets:

According to SEBI regulations transfer of units is required to be done within 30 days from the date of

lodgement of certificates with the Mutual Funds in case of close ended schemes.

Time to receive dividends repurchase proceeds:

A Mutual Fund is required to dispatch to the unit holders the dividend warrants within 30 days of the

declaration of the dividend and the redemption or repurchase proceeds within 10 working days from

the date of redemption or repurchase request made by the unit holders.

In case of failures, AMC is liable to pay interest.(eg.15%)

Change in the nature of the scheme:

Yes, but no change in the nature or terms of the schemes known as fundamental attributes of scheme

can be carried out unless a written communication is sent to each unit holders and an advertisement is

given in one English daily and newspaper. The unit holders have the right to exit the scheme at the

prevailing NAV without any exit load.

Same is done in case of change from close to open ended and in case of change in sponsor.

There may be changes from time to time in a Mutual Fund. They send quarterly newsletter to their

investors.

Offer document are received and updated at least once in two years.

New investors are informed about the changes by way of addendum to the offer document till the time

24

its revised and reprinted.

Systematic Investment Plan (SIP) :

--- to start early, invest regularly.

Regular savings of even small amounts through this plan helps to build up a large asset base over a

period of time. It is a convenient and systematic way to 'invest while you earn' and provides an

opportunity to invest regularly, thereby averaging the acquisition cost of units.

Why choose Mutual Fund

There are several benefits from investing in mutual funds like:

1) Professional expertise :

Fund managers are professionals who track the market on an on going basis. With their mix of

professional qualification and market knowledge, they are better placed than the average investor to

understand the markets.

2) Diversification:

Since a mutual fund scheme invests in number of stocks and/or debentures, the associated risks are

greatly reduced.

3) Relatively less expensive:

When compared to direct investments in the capital market, mutual funds cost less. This is due to

savings in brokerage costs, demat costs, depository costs etc.

4) Liquidity:

Investments in mutual funds are completely liquid and can be redeemed at Net Assets Value (NAV)

related price on any working day.

5) Transparency:

You will always have access to up-to-date information on the value of your investment in addition to

the complete portfolio of investments, the proportion allocated to different assets and the fund

manager’s investment strategy.

6) Flexibility:

Through features such as regular investment plans, regular withdrawal plans and dividend investment

plans, you can systematically invest or withdraw funds according to your needs and convenience.

SEBI regulated:

25

All mutual funds are registered with SEBI and function within the provisions and regulations that

protect the interests of investors.

AMFI is the supervisory body of Mutual Fund Industry

While most investment options provide most of these features, only Mutual Funds provide all of these

options.

Snapshot of Mutual Fund Schemes

Mutual Fund Type

Objective Risk typeInvestment

PortfolioWho should invest

Investment horizon

Money market

Liquidity + moderate income + reservation of

capital

Negligible

Treasury Bills, Certificate of Deposits, Commercial papers, call money

Those who park their funds in current

account or short term bank deposit

2 days - 3 weeks

Short term funds

(Floating Short term)

Liquidity + Moderate Income

Little interest rate

Call money, commercial papers. Treasury bills, CD’s, Short Term G- secs.

Those with surplus short term funds

3 weeks - 3 months

Bond funds

( Floating Long-term)

Regular IncomeCredit risk & Interest rate risk

Predominantly Debentures, Government securities, corporate Bonds

Salaried & conservative investors

More than 9 - 12 months

Gilt fundsSecurity&

incomeInterest rate risk

Government securities

Salaried and conservative

12 months & more

Equity funds

Long term capital appreciation

High risk StocksAggressive investors with long term out

look.3 years plus

Index funds

To generate returns which are

Nav, vary with index

Portfolio index like BSE NIFTY

Aggressive investors. 3 years plus

26

commensurate with returns of

respective indexperformance etc

Balanced funds

Growth & regular income

Capital market risk and interest risk

Balanced ratio of equity and debt funds to ensure igher returns at lower risk

Moderate & Aggressive

2 year plus

1. Returns on mutual fund vary according to the scheme opted. Equity Funds can provide high but

inconsistent returns depending on the market performance. Debt funds provide relatively stable

returns. (Past performance is not a guarantee for future return.)

2. Debt funds are subject to interest rate risk and credit risk. Debt funds are comparatively safer as

they invest in government securities and highly rated corporate and government papers.

3. Liquidity in mutual funds is high, as it promises to pay on demand.

4. Diversification is important parameter for mutual funds as they invest in diverse securities,

which is not available with others. This also reduces the risk factor.

Documents required (PAN mandatory):

1) Proof of identity :

1.Photo PAN card

2. In case of non-photo PAN card in addition to copy of PAN card any one of the following:

driving license/passport copy/ voter id/ bank photo pass book.

2) Proof of address (any of the following): latest telephone bill, latest electricity bill,

Passport, latest bank passbook/bank account statement, latest Demat account statement,

voter id, driving license, ration card, rent agreement.

3) Offer document: an offer document is issued when the AMCs make New Fund Offer (NFO). It’s

advisable to every investor to ask for the offer document and read it before investing. An offer

document consists of the following:

4) Standard Offer Document for Mutual Funds (SEBI Format)

5) Summary Information

6) Glossary of Defined Terms

7) Risk Disclosures

8) Legal and Regulatory Compliance

9) Expenses

10) Condensed Financial Information of Schemes

11) Constitution of the Mutual Fund

27

12) Investment Objectives and Policies

13) Management of the Fund

14) Offer Related Information.

Key Information Memorandum: A key information memorandum, popularly known as KIM, is

attached along with the mutual fund form. And thus every investor gets to read it. Its contents are:

1. Name of the fund.

2 Investment objective

3. Asset allocation pattern of the scheme.

4. Risk profile of the scheme

5. Plans & options

6. Minimum application amount/ no. of units

7. Benchmark index

8. Dividend policy

9. Name of the fund manager(s)

10.Expenses of the scheme: load structure, recurring expenses

11.Performance of the scheme (scheme return v/s. benchmark return)

12. Year- wise return for the last 5 financial year.

28

Company Profile

SUNDARAM FINANCE LIMITED

Sundaram Finance has grown over the past decades on the foundations of dedicated customer

service, fair business practices, efficient, safe and trusted financial policies.

The Company was incorporated in 1954, with the object of financing the purchase of commercial

vehicles and passenger cars.

Be it lenders, depositors, shareholders, customers or employees, Sundaram Finance has always

enjoyed an excellent relationship with all its stakeholders. In fact, the Company owes its

impressive track record to these long standing relationships. Today, Sundaram Finance has come

a long way from its position of being the leading Hire-purchase Finance Company to become the

leader in its chosen field.

Driven by the sincerity of Shri Santhanam’s concern for commitment to and passion for the small

truck operators, at a time when the focus was only on financing large truck operators, Sundaram

Finance emerged as a leading financier of the transport sector. Devoting its services to the growth

of the road transport industry, Sundaram Finance is today synonymous with automotive financing

in the country.

Today, Sundaram Finance has a nationwide network supported by a dedicated team of service

oriented personnel, who ensure personalized customer service. Sundaram Finance remains true to

its core values of prudence, fairness, transparency and service excellence which have enabled it to

emerge as a leader in its chosen field.

At Sundaram Finance, values are defined by the services rendered to the customer. Long before

customer satisfaction became a fashionable concept, Sundaram Finance distinguished itself by

providing a host of value-added services which transcend the ordinary approach. At Sundaram

Finance, service is a way of life.

From being the leader in hire-purchase, Sundaram Finance has spread its activities and today its

range of financial services encompasses Leasing and Car Finance. Sundaram Finance also offers

Home Finance and Asset Management through its subsidiaries.

Sundaram Finance achieved its leadership position by a unique combination of traditional

conservatism and judicious dynamism. The values envisioned and inculcated by Shri

T.S.Santhanam have endured and inspired the professional workforce at Sundaram Finance to a

very high degree of commitment and dedication. The prudent practices followed by the Company

such as strong credit appraisal skills, effective receivables management, well defined

documentation and procedures have become industry benchmarks.

29

At Sundaram Finance, people are its most valuable assets. The Company conducts regular in-

house training programmes that help motivate employees and improve leadership and managerial

abilities. Every employee at Sundaram Finance is proud to represent an institution that values

professional integrity, above all else.

Sundaram Finance not only invests in its people but also in the latest advanced state-of-the-art

technology. It set industry standards by computerising and networking all its offices through a

variety of communication media including VSAT installations. These ensure efficient and smooth

functioning of all its systems and procedures resulting in better customer service.

Be it lenders, depositors, shareholders, customers or employees, Sundaram Finance has always

enjoyed an excellent relationship with all its stakeholders. In fact, the Company owes its

impressive track record to these long standing relationships. Today, Sundaram Finance has come

a long way from its position of being the leading Hire-purchase Finance Company to become the

leader in its chosen field.

Sundaram Medical Foundation (SMF), a non-profit Trust set up in 1990, exemplifies the

commitment of Sundaram Finance Group to the community and its citizens. Dedicated to setting

new standards in quality healthcare to the community in a cost-effective manner without

compromising on patient care, medical competence, service courteousness and compassion, Dr.

Rangarajan Memorial Hospital is a hospital under SMF, where caring is not a sub-speciality in

medicine.

Endowed with a large corpus Fund, the hospital is today, equipped with up-to-date medical

infrastructure and provides a wide range of medical services fulfilling a long felt need for

providing quality healthcare at affordable costs.

The Company was incorporated in 1954, with the object of financing the purchase of commercial

vehicles and passenger cars.

The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972.

The Company's shares were listed in the Madras Stock Exchange in 1972 and in the National

Stock Exchange in January 1998.

Subsequently, the equity shares of the Company have been delisted from Madras Stock Exchange

Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of

Securities) Guidelines, 2003, for voluntary delisting.

The sponsor of the fund is Sundaram Finance Limited, one of the most respected names in

financial services today. Sundaram Finance has an asset base of over Rs.2,500 crores, a deposit

base of over Rs.700 crores and over 4.6 lakh customers.

Establishment of the Company

During the year, with the approval of the Securities and Exchange Board of India (SEBI) and by

30

virtue of Regulation 17(2) of SEBI (Mutual Funds) Regulations, 1996, a trustee company, viz.,

Sundaram Finance Trustee Co Ltd., was established to replace the Board of Trustees of SM.

A subsidiary of Sundaram Finance Ltd, the Sponsor of Sundaram Mutual Fund, the Trustee

Company was incorporated on December 2, 2003, with the existing members of the Board of

Trustees being appointed as the first Directors of the Company.

A trust deed was executed between the Sponsor and the Trustee Company on March 22, 2004 and

registered with the Sub-Registrar, Triplicane, Chennai. The Trustee Company assumed the

trusteeship from April 1, 2004. SM funds continue to be managed by Sundaram Asset

Management Co Ltd. (AMC) under an investment management agreement

Main Building :

Sundaram Medical Foundation,

Shanthi Colony 4th Avenue,

Anna Nagar,

Chennai 600 040.

Ph: 044 2626 8844 .

Annex:

Sundaram Medical Foundation,

783/784, 17th Main Road, Tirumangalam,

Anna Nagar,

Chennai 600 040.

Ph: 044 2622 0103 / 2622 0104 / 2622 0105 / 2622 0106.

Main Group Of Companies

1. Sundram Finance Limited

2. Sundram BNP Paribas Assets Management

3. Sundram BNP Paribas Home Finance

4. Royal Sundram Alliance Insurance

5. Sundram InfoTech Solutions

6. Sundram Business Services

7. Sundram Finance Distribution Limited

8. LGF Services Limited

9. Infrieght InfoTech Solutions Limited

10. Sundram Direct

31

Facts That’s Speak

Birth of Sundaram Finance

First finance company to be listed on the Madras Stock Exchange.

Started Leasing operations.Formation of Lakshmi General Finance

Receivables crossed Rs. 1000 crore (Rs. 10 billion)

Deposits crossed Rs. 500 crore (Rs. 5 billion)

Formed Sundaram Newton Asset Management Company Ltd. in collaboration with Newton Management Ltd., UK.

Received Best Tax Payer Award

Received Best Tax Payer Award

Receivables crossed Rs. 2000 crore (RS. 20 billion)

Promoted Fiat Sundaram Auto Finance Limited, a joint venture with Fidis S.p.A., Italy

Promoted Sundaram Home Finance Limited with equity participation from International Finance Corporation (IFC), Washington, and FMO Netherlands

Promoted Royal Sundaram Alliance Insurance Company Limited, a joint venture with Royal & Sun Alliance Plc, for Non-Life Insurance

Promoted Sundaram Infotech Solutions - Infotech division of Sundaram Finance

Promoted Sundaram Business Services - BPO arm of Sundaram Finance

Merger with LGF making SF Billion dollar Balance sheet NBFC

BNP Paribas Asset Management Group, France acquires 49.90 % stake in Sundaram Asset Management Company Ltd from SFL.

Union de Credit pour le Batiment SA (UCB), a wholly owned subsidiary of BNP Paribas SA, France acquires 49.90% stake in Sundaram Home Finance Ltd from SFL.

32

WHO'S WHO IN SUNDRAM FINANCE LIMITED

Chairman:

Sri S Viji

Directors:

Sri S Ram

Sri S Narayanan

Sri A Rangaswam

Sri T R Seshadri

Sri S Ravindran

Sri S Prasad

Sri Aroon Raman

Managing Director

Sri T T Srinivasaraghavan

Deputy Managing Director

Sri Srinivas Acharya

Company Secretary

Sri S Venkatesan, CFO & Secretary

Compliance Officer

Sri P Viswanathan, Deputy Secretary & Compliance Office

33

Senior Management

S Venkatesan CFO & Secretary

P S Raghavan Executive Director & Head – Sundaram Business Services

A N Raju Executive Director

Paramesh Krishnaier Executive Director

K Swaminathan Senior Vice President (Sundaram Infotech Solutions)

M Ramaswamy Senior Vice President & Head – Treasury

Harsha Viji Senior Vice President (Special Projects)

S Ravindran Vice President & Head – Northern Region

P Viswanathan Vice President & Deputy Secretary

J Raghunathan Vice President (Sundaram Infotech Solutions)

S Srinivasan Vice President & Head – Leasing

K Manivannan Vice President (Training)

S Sivakumar General Manager (Operations)

T S Venkataraman General Manager (Operations)

M J Kulkarni General Manager & Head – Western Region

S Ramachandran General Manager (Audit)

Venkatesh Kumaraswami General Manager (Sundaram Business Services)

K Sankara Kumar General Manager & Head – Distribution

34

Awards

· ‘ Certificate of Commendation ’ award by the Government of India under the scheme of “Good Tax Payers”.

· “Second Best Tax Payer” in the category of Private Sector Company for Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.

· ‘Rolling Trophy ’ by Rotary Club of Madras South West for Best Employer-Employee Relationship for the year 1995-96.

· “Best Tax Payer” in the category of Private Sector Company for Assessment Year 1995-96 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.

· “Automan Award” to Shri T S Santhanam, Chairman, from Motor India in 1998.

· “Pioneering Service Award” to Shri T S Santhanam Chairman, from Chennai Good Transport Association.

· “ Sarige Ratna Award ” to Shri T S Santhanam, Chairman, from the Bangalore City Lorry Transporting Agents’ Association (Regd).

· “Most Valued Customer Award” to Shri T S Santhanam Chairman, from the State Bank of India.

· “The Best Financier of the New Millennium 2000” to Shri. G K Raman, Managing Director, from the All India Motor Transport Congress.

Product’s Range

Commercial Vehicles Finance

Car Finance

Home Loans

Tyre Finance

Insurance

Asset Management

Equipment Finance

Fleet Card

InfoTech Solutions

Business Process Outsourcing

Logistics Services

35

7 Reasons why to invest through Sundram Finance Limited

1. Old Establishment –Sundram Finance Limited is one of the oldest and largest Investment

Company in India in operation since1954.

2. Vast and Modern Infrastructure –Sundram Finance has a vast network of 400 offices

spread all over the country. It covers all Metros and other important financial centres.

They have a team of over 4000 highly experienced employees including MBAs, CAs,

Financial Analysts, Investment Consultants, Law Graduates and Stock Market experts.

Our operations are fully computerised.

3. SEBI Authorisation Sundram Finance is authorised by Securities & Exchange Board of

India (SEBI), a Government body specially created for investor's protection. As per recent

notification SEBI has warned that “Dealing with unregistered Brokers is risky and SEBI

will not be in a position to entertain any complaints against such unregistered Brokers.

4. After Sales Service – “Service with a smile” is their motto. Their investments

Consultant are specially trained to provide highly personalised and professional advice to

their investor clients. Their role does not end when the client has made the investment.

They are known for their excellent “After Sales Services”.

5. V ast Variety of “Schemes” -- They offer the largest variety of investment schemes

suited to individual requirements of their clients keeping in view their return expectation.

They are fully fledged “Financial Supermarket” offering advice to their clients for

investment in the following schemes :--

A) Fixed Deposit

B) Mutual Funds

6) Investor Protection – They have a full fledged investor protection cell which currently

monitors/analyses performance and health of companies helping them give unbiased

investment advice.

7) Large number Of Satisfied Clients – Last but not the least, their biggest strength is their

vast and dedicated clientele of around 4.6 lakhs individual investor spread all over India.

The list of their clients includes cream of Indian Society retired Governors, Diplomats,

Bureaucrats, and top Corporate Executives, Army & Civil officers and Housewives etc..

36

My Project Research :

My project research is based on Exploratory and Conclusive Research.

Exploratory Research Part : -- Initially when I joined Sundram Finance I had very little

knowledge of Mutual Funds. I studied what are Mutual Funds and then I studied through various

types of good Mutual Fund schemes which are currently available in the market. I studied the fact

sheets of the IPO’s Funds which were launched at that time. I studied the behaviour of various

investors of different risk profiles who all invested in different types of funds. It was an overall

general study of the different funds and their working in the market, how Fund managers manage

different portfolios.

Conclusive Research Part: -- My study then narrowed up into Sundram Mutual Funds. I

studied its different types of schemes available, how fund Managers have allocated the portfolio to be

so much diversified so as to minimise risks. I studied its ranking in the market and its risk bearing

capacities. I used to explain about the Sundaram Fund schemes to the prospective investors.

37

Study Methodology

I have used Primary data by way of direct interactions with clients/investors. I learned their

risk taking capabilities and used to inform them of various Funds available according to their

needs.

I have used secondary data in form of Fact Sheets. I studied the Fact Sheets of Various Fund

of Sundram Finance Limited and Product Guide of Sundram Mutual Fund.

I have used the Fact Sheets of different Company Mutual Funds.

I have used the performance report of mutual funds of different company.

38

Survey and Sampling

I surveyed the investors which are Sundram Finance Clients as taken personal interview . I had

a sample size was of 25 investors. They were all Sundram Finance Clients. I studied their risk taking

capabilities. I came to know whether they opted for Equity holding and were ready to accept any

volatility of market, the risk attached with it. Whether they were ready to invest in Debt shares and

have a secured investment. Mainly people wanted to invest in Equity Shares. Some were themselves

updated with market ups and downs and therefore used to switch on daily basis. They were mainly

Equity market players.

39

Hypothesis

Initially, I studied all the funds fact sheets of different Mutual Funds available in the

market, and then I found Sundaram Mutual Fund to be one of the best among all the Funds I dealt

with. Therefore I opted to continue my project on this Fund and compare it with other funds available

and mark its standing in the market. Therefore my study narrowed down to comparing the Sundaram

Fund with other similar category funds operating in the market.

I finally accept my hypothesis, and found Sundaram Mutual Fund to be better managed by

its fund managers, and readily accepted by investors. It has a very good ranking in the market and

even equity players have to bear minimum amount of risk. Investors who all have invested in it

mostly have not switched over to other funds. This fund has the best type of diversified portfolio thus

reducing the overall risk attached with it. Sundaram S.M.I.L.E. fund, Sundaram India leadership

Fund, Sundaram Balanced Fund, Sundaram TaxSaver Fund Sundaram Growth Fund, all are found to

be in a better position in the market than other general Equity funds available.

Thus my hypothesis is accepted.

40

Findings

Sundram BNP Paribas Mutual Fund:

Investment manager for Sundaram BNP Paribas Mutual Fund sponsored by Sundaram Finance & Newton Group in 1996. Newton exited in 2002.

BNP Paribas Asset Management (BNPP AM) became a partner in 2006.

The Company is now a joint venture between Sundram Finance(50.1% stake)and BNP ASEET Management(49.9% stake)

The sponsors have an equal in management.

Mutual Funds: Sundaram Mutual believes in helping investors reach their financial

goals by delivering consistent performance through sensible investment practices. The range

of products offered by Sundaram Mutual is as follows:

No. of schemes 49

No. of schemes including

options

188

Equity Schemes 36

Debt Schemes 127

Short term debt Schemes 15

Equity & Debt 6

Money Market 0

Gilt Fund 2

41

Debt Equity Hybrid

Sundaram Bond Saver Sundaram Growth Fund Sundaram Balanced Fund

Sundaram Income Plus Sundaram Select Mid-Cap

Fund

Sundaram Monthly Income Plan

Sundaram Select Debt Sundaram Select Focus

Sundaram Money Fund Sundaram India Leadership Fund

Sundaram Floating rate Fund Sundaram S.M.I.L.E. Fund

I ] Sundaram Debt Funds :

1) Sundaram Bond Saver :

Objective : Sundaram BNP Paribas Bond Saver seeks to earn regular income by investing primarily in fixed income securities, which may be paid as dividend or reinvested at the option of the investor.Structure : Open Ended Income SchemeInception Date : November 12, 1997Plans and Options under the Plan : Dividend, Growth, Bonus

42

Face Value (Rs/Unit): Rs. 10

Minimum Investment : Rs. 5000.

Entry Load : Nil.

Exit Load : Applications < or = Rs.10 lakhs: 0.50% if redeemed within 6 months.Applications > 10 Lakhs: Nil.

Latest NAV

Scheme Name NAV (Net Asset Value)

Repurchase Price

Sale Price Date

Sundaram BNP Paribas Bond Saver-Annual Dividend

10.3884 10.3884 10.3884 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Bonus Option

14.2161 14.2161 14.2161 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Growth

26.9792 26.9792 26.9792 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Half-Yearly Dividend

10.5891 10.5891 10.5891 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Institutional Plan - Bonus Option

14.0986 14.0986 14.0986 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Institutional Plan(Annual Dividend)

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Institutional Plan(Growth)

27.1019 27.1019 27.1019 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Institutional Plan(Half-Yearly Dividend)

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Institutional Plan(Qtrly Dividend)

10.6176 10.6176 10.6176 08-Jun-2009

Sundaram BNP Paribas Bond Saver-Qtrly Dividend

10.5696 10.5696 10.5696 08-Jun-2009

2 ) Sundaram Income Plus:

Objective : Sundaram BNP Paribas Income Plus fund seeks to obtain high yields by investing in fixed income securities.

Structure : Open Ended Income Scheme

Inception Date : July 19, 2002

43

Plans and Options under the Plan : Dividend, Growth



Entry Load : Nil.

Exit Load : Applications < or = Rs.10 lakhs: 0.50% if redeemed within 6 months.

Applications > 10 Lakhs: Nil.

Latest NAV

3) Sundaram Select Debt :

Objective : Sundaram BNP Paribas Select Debt seeks to earn regular income by investing primarily in fixed income securities, which may be paid as dividend or reinvested at the option of the investor.


Inception Date : August 30, 2002

Plans and Options under the Plan : Dynamic Asset Plan, Short Term Asset Plan.

Face Value (Rs/Unit): Rs 10.


EntryLoad :Nill

Exit Load : Nill

Latest NAV

44


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Income Plus-Appreciation

14.4541 14.4541 14.4541 08-Jun-2009

Sundaram BNP Paribas Income Plus-Dividend

11.7358 11.7358 11.7358 08-Jun-2009


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Annual Div

10.9298 10.9298 10.9298 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Appreciation Option

14.9945 14.9945 14.9945 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Fortnighty Dividend Reinvst

10.9771 10.9771 10.9771 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Half-Yearly Div

10.9184 10.9184 10.9184 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Monthly Dividend Reinvst

10.7278 10.7278 10.7278 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Quarterly Div

11.2653 11.2653 11.2653 08-Jun-2009

Sundaram BNP Paribas Select Debt-Short-term Asset Plan-Weekly Dividend Reinvst

11.1565 11.1565 11.1565 08-Jun-2009

4) Sundaram Money Fund :

Objective : Sundaram BNP Paribas Money Fund seeks to provide a level of income consistent with

the preservation of capital, liquidity and lower level of risk, through investments made primarily in

money market and debt securities. The aim is to optimize returns while providing liquidity.

Structure:Open Ended Liquid Scheme

Inception Date : March 06, 2000

Plans and Options under the Plan : Dynamic Asset Plan, Short Term Asset Plan.


Minimum Investment : Rs. 10,000.

Entry Load : Nil.

Exit Load : Nil

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Money Fund-Quarterly Dividend Reinvestment

10.7894 10.7894 10.7894 08-Jun-2009

Sundaram BNP Paribas Money Fund-Appreciation

18.4283 18.4283 18.4283 08-Jun-2009

45

Sundaram BNP Paribas Money Fund-Daily Dividend Reinvestment

10.0953 10.0953 10.0953 08-Jun-2009

Sundaram BNP Paribas Money Fund-Fortnightly Div Reinvst

10.4071 10.4071 10.4071 08-Jun-2009

Sundaram BNP Paribas Money Fund-Monthly Div. Reinvst

10.2783 10.2783 10.2783 08-Jun-2009

Sundaram BNP Paribas Money Fund-Weekly Div. Reinvst

10.6155 10.6155 10.6155 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional Daily Div. Reinvest

10.0953 10.0953 10.0953 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional fortnightly Div.Rein

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional Growth

18.7804 18.7804 18.7804 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional monthly Div.

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional Qrtly Div. Reinvest

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund Super Institutional weekly Div. Rein

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Daily Div. Reinvestment

10.0953 10.0953 10.0953 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Fortnightly Div Reinvestment

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Growth Option

18.5984 18.5984 18.5984 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Monthly Div. Reinvestment

10.3247 10.3247 10.3247 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Quarterly Div. Reinvestment

11.0254 11.0254 0.0000 08-Jun-2009

Sundaram BNP Paribas Money Fund-Institutional Plan-Weekly Div. Reinvestment

10.6517 10.6517 10.6517 08-Jun-2009

5) Sundaram Floating Rate Fund :

Objective : Sundaram BNP Paribas Floating Rate Fund seeks to generate reasonable returns by creating a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, and also fixed rate instruments, short-term bonds and money market instruments.

46

Structure : Open Ended Floating Rate SchemeInception Date : December 24, 2004Plans and Options under the Plan : Short Term Plan, Long Term PlanFace Value (Rs/Unit): Rs. 10Minimum Investment : Rs. 500Entry Load : Nil.Exit Load : Short Term Plan: Regular/Institutional: Nil. Long Term Plan:Regular: if investment is less than Rs.10 Lakhs: 0.50% if redeemed within 180 days from the date of investment. Institutional: Nil.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Flexible Fund-Flexible Income Plan Institutional - Growth

15.6539 15.6539 15.6539 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan Institutional - Monthly Dividend

10.5298 10.5298 10.5298 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan -Institutional - Quarterly Dividend

0.0000 0.0000 0.0000 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan Regular - Annual Dividend

10.7270 10.7270 10.7270 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan Regular - Growth

13.2957 13.2957 13.2957 08-Jun-2009

Sundaram BNP ParibasFlexible Fund -Flexible Income Plan Regular - Half Yearly Dividend

10.8278 10.8278 10.8278 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan Regular - Monthly Dividend

10.3364 10.3364 10.3364 08-Jun-2009

Sundaram BNP Paribas Flexible Fund -Flexible Income Plan Regular - Quarterly Dividend

11.0235 11.0235 11.0235 08-Jun-2009

Sundaram BNP Paribas Flexible Fund-Short Term Plan - Institutional Daily Dividend

10.0519 10.0519 10.0519 08-Jun-2009

Sundaram BNP Paribas Flexible Fund-Short Term Plan - Institutional Growth

13.8981 13.8981 13.8981 08-Jun-2009

Sundaram BNP Paribas Flexible Fund-Short Term Plan - Institutional Monthly Dividend

10.2969 10.2969 10.2969 08-Jun-2009

Sundaram BNP Paribas Flexible Fund-Short Term Plan - Institutional

10.2956 10.2956 10.2956 08-Jun-2009

47

Weekly Dividend

Sundaram BNP Paribas Flexible Fund-Short Term Plan Regular - Growth

13.4288 13.4288 13.4288 08-Jun-2009

II] Sundaram Equity Funds : Sundaram Growth Fund:

Objective : Sundaram BNP Paribas Growth Fund seeks to achieve capital appreciation by investing in a well diversified basket of equities and equity-related instruments. Income generation would be the secondary consideration.Structure : Open-ended Equity Fund

Inception Date : February 15, 1997

Plans and Options under the Plan : Dividend, Growth.



Entry Load : For applications < Rs.2 crore: 2.25%. For applications = or > Rs. 2 crore: Nil

Exit Load : Nil.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Growth Fund-Dividend

10.7377 10.7377 10.9793 08-Jun-2009

Sundaram BNP Paribas Growth Fund-Growth

67.6877 67.6877 69.2107 08-Jun-2009

1) Sundaram Select Mid-Cap

Objective : Sundaram BNP Paribas Select Midcap seeks to primarily achieve capital appreciation by

investing in diversified stocks that are generally termed as midcaps.

Structure : Open Ended Equity Scheme



48


Minimum Investment : Rs. 5000


Exit Load : Nil.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Select Midcap-Dividend

15.7903 15.7903 16.1456 08-Jun-2009

Sundaram BNP Paribas Select Midcap-Growth

100.6919

2) Sundaram Select Focus Fund :

Objective : Sundaram BNP Paribas Select Focus seeks to achieve capital appreciation by investing in

very few select stocks.






Entry Load : For applications < Rs.2 crore: 2.25%. For applications = or > Rs. 2 crore: Nil.

Exit Load : Nil.

49

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Select Focus-Dividend

10.8745 10.8745 11.1192 08-Jun-2009

Sundaram BNP Paribas Select Focus-Growth

70.8853 70.8853 72.4802 08-Jun-2009

4) Sundaram India Leadership Fund :

Objective : Sundaram BNP Paribas India Leadership Fund seeks to achieve capital appreciation by investing in select stocks of companies which meet criteria of \'Leaders\' in their respective sectors/sub sectors. The leaders are identified as the top two/three companies in any sector/sub sector in terms of net revenue or total income.


Inception Date : June 18, 2004





Exit Load : Nil.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas India Leadership Fund-Dividend

11.1192 11.1192 11.3694 08-Jun-2009

Sundaram BNP Paribas India Leadership Fund-Growth

30.6207 30.6207 31.3097 08-Jun-2009

5) Sundaram SMILE Fund:

Objective : Sundaram BNP Paribas SMILE Fund seeks to achieve capital appreciation by investing mainly in small and mid-cap stocks in a diversified manner.


Inception Date : January 21, 2005



50



Exit Load : For applications < Rs.2 crore: Nil. For applications = or > Rs. 2 crore: 2.25% if redeemed within 6 months.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas S.M.I.L.E.Fund-Dividend

12.9476 12.6563 13.2389 08-Jun-2009

Sundaram BNP Paribas S.M.I.L.E.Fund-Growth

22.9662 22.4495 23.4829 08-Jun-2009

III] Sundaram Hybrid Funds

1) Sundaram Balanced Fund:

2) Objective : Sundaram BNP Paribas Balanced Fund seeks to generate capital appreciation and current income, through a judicious mix of investments in equities and fixed income securities.

Structure : Open Ended Balanced Scheme

Inception Date : May 25, 2000

Plans and Options under the Plan : Growth, Dividend



Entry Load : Applications < Rs. 2 Crores: 2.25%. Applications = or > Rs. 2 crores: Nil.

Exit Load : Nill


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Balanced Fund - Appreciation Option

36.5647 36.1991 37.3874 08-Jun-2009

Sundaram BNP Paribas Balanced Fund 13.6225 13.4863 13.9290 08-Jun-2009

51

- Dividend Option

Latest NAV

2)Sundaram Monthly Income Plan

Objective : Sundaram BNP Paribas Balanced Fund seeks to generate capital appreciation and current income, through a judicious mix of investments in equities and fixed income securities.


Inception Date : December 23, 2003

Plans and Options under the Plan : Growth, Dividend.

Face Value (Rs/Unit): Rs. 10Minimum Investment : Rs. 5000.Entry Load : Nil.

Exit Load : Applications = or < Rs.10 lacs: 0.5% if redeemed within 6 months. Applications > Rs.10 lacs: Nil.

Latest NAV


Repurchase Price

Sale Price Date

Sundaram BNP Paribas Monthly Income Plan-Quarterly-Dividend

10.7802 10.7802 10.7802 08-Jun-2009

Sundaram BNP Paribas Monthly Income Plan-Growth

14.2634 14.2634 14.2634 08-Jun-2009

Sundaram BNP Paribas Monthly Income Plan-Half-yearly Dividend

10.6160 10.6160 10.6160 08-Jun-2009

Sundaram BNP Paribas Monthly Income Plan-Monthly Dividend

10.5002 10.5002 10.5002 08-Jun-2009

ANALYSISComparison between Sundaram BNP Mutual Funds schemes:

(As on 09.06.2009)

Scheme Sub-Obj NAV 1 Yr Inceptn

Sundaram BNP SMILE Fund Equity-Diversified 25.53 04.77 21.64

Sundaram BNP TaxSaver Equity-ELSS 35.07 08.40 22.58

Sundaram BNP Select Midcap Equity-Diversified 103.05 08.66 40.68

Sundaram BNP India Leadership Fund Equity-Diversified 31.56 -06.20 26.25

Sundaram BNP Tax Saver Equity-ELSS 35.07 08.40 22.58

Sundaram BNP Select Focus Equity-Diversified 73.21 -02.10 33.71

52

Sundaram BNP Growth Fund Equity-Diversified 70.11 11.99 21.72

Sundaram BNP Balanced Fund Balanced 37.51 05.02 15.89

Sundaram BNP Capex Opportunities Fund Equity-Diversified 20.79 01.38 24.66

Sundaram BNP Rural India Fund Equity-Diversified 10.95 16.22 03.64

Sundaram BNP Media and Entertainment Opportunities Fund

Sectorial Media And Entertainment 13.37 -NA- 33.73

Sundaram BNP Monthly Income Plan MIP 14.33 07.86 06.84

Sundaram BNP Bond Saver(Institutional) Income 27.09 10.54 04.69

Sundaram BNP Bond Saver Income 26.96 09.28 09.05

Sundaram BNP Income Plus Income 14.45 04.05 05.48

Sundaram BNP Gift Fund Gift 14.61 03.36 04.78

Sundaram BNP Money Fund Liquid 18.43 07.48 06.82

Sundaram BNP Global Advantage Fund FOP 08.60 25.61 -08.23

Sundaram BNP Money Fund(Super Institutional plan) Liquid 18.78 08.23 07.75

(Sources-www.valueresearch.com)

Sundram Mutual Fund Scemes

53

Explanation :

We can see from the above graph that Sundaram BNP Rural India Fund has performed well this

year, whereas if compared within the scheme we can see that sundaram select mid-cap has performed

better since inception than any other scheme, and is still performing better since last year.

I. COMPARISON BETWEEN SUNDARAM MUTUAL FUND AND MARKET:

54

A) Sundaram Select Focus Table:

Sources-sundram funds fact sheets)

Comments55

Performance (%) as on 31,March 2009 1 Year 2 Years 3 Years 5 Years

Sundaram Select Focus - Growth -37.87 -8.7 -2.5 15.9

Kotak 30 -35.2 -7.7 -2.3 17.1

Tata Pure Equity MF -33.4 -8.6 -3.9 16.4

Magnum Equity -38.0 -12.2 -3.8 14.5

Birla Sun Life Frontline Equity -32.8 -8.5 0.7 15.8

SBI Blue Chip -38.0 -16.2 -10.7 ---

ING Core Equity -40.2 -13.7 -7.8 13.2

DSP Black Rock Top 100 Equity -26.4 -2.8 2.7 18.9

Morgon Stanley Growth -41.3 -19.3 -12.5 8.8

DWS Alpha Equity -32.5 -4.3 -0.3 16.0

Average Large Cap Funds -34.3 -9.6 -3.9 14.0

All Equity Funds -36.9 -14.2 -8.4 12.3

S&P CNX Nifty -36.2 -11.1 -3.9 11.3

BSE Sensex -37.9 -13.8 -4.9 11.7

CNX 100 -37.6 -12.5 -5.1 10.4

BSE Mid Cap -54.0 -25.9 -17.9 7.3

CNX Mid Cap -45.4 -16.2 -10.7 9.5

CNX Nifty Junior -45.6 -20.6 -12.2 5.0

BSE Small Cap -58.6 -29.2 -21.0 12.0

BSE 500 -42.8 -15.7 -7.9 9.4

S&P CNX 500 -40.0 -14.6 -7.6 9.5

The above table shows the comparison of Sundaram Select Focus – Growth option with that of other

similar category fund and the market. It can be seen that Sundaram Select Focus has 5years

performance as 15.9%. The average performance of similar category funds is 14% which is lower

than that of sundaram fund. The BSE Sensex has showed as 11.7 which have lower than Sundram

Select Focus Funds. All the index has showed theirs 5years return is lower than Sundram Select focus

Funds.

B)Sundaram Select Midcap Growth :--

Performance(%)as on 31,March2009 1Year 2Years 3Years 5Years

Sundram Select Mid Cap -44.3 -19.3 -9.4 19.6

Average Mid Cap Funds -48.3 -22.8 -16.3 14.6

All Equity Funds -36.9 -14.2 -8.4 12.3

Large Cap Funds -34.3 -9.6 -3.9 14.0

BSE Mid Cap -54.0 -25.9 -17.9 7.2

BSE Sensex -37.9 -13.8 -4.9 11.7

S&P CNX Nifty -36.2 -11.1 -3.9 11.3

CNX 100 -37.6 -12.5 -5.1 10.4

CNX Mid Cap -45.4 -16.2 -10.7 9.5

CNX Nifty Junior -45.6 -20.6 -12.2 5.0

BSE Small Cap -58.6 -29.2 -21.0 12.0

BSE 500 -42.8 -15.7 -7.9 9.4

S&P CNX 500 -40.0 -14.6 -7.6 9.5

(Sources-sundram funds fact sheets)Comment:

The above table shows the comparison between the Sundaram Select Midcap and the other similar

category funds and the market. IT can be seen that the Sundaram Select Midcap has showed 19.6% as

5 Years performance which is better than that of, the written index. The average performance of simi-

lar category funds was 14.6% and BSE showed 11.7%.

C)Sundaram BNP Paribas TaxSaver Fund Table:--Performance(%)as on 31,March2009 1 Year 2Years 3years 5Years

56

Sundram TaxSaver -32.0 -7.0 -3.4 22.8

Peer Group Average -39.4 -14.4 -9.7 12.4

Sahara Tax Gain -32.5 -6.7 -5.8 14.8

Magnum Tax Gain -40.4 -15.3 -6.0 26.4

HDFC Tax Saver -36.2 -14.9 -9.6 19.3

Birla Sun Life Tax Plan -39.2 -16.5 -10.0 13.1

Reliance Tax Saver -30.7 -14.5 -10.0 ------

UTI Equity Tax Saving -37.7 -13.1 -10.6 8.9

Tata Tax Saving -39.4 -15.1 -11.2 10.0

Kotak Tax Saver -44.2 -18.9 -11.2 ------

LIC MF Tax Plan -37.5 -17.1 -12.7 2.1

All Equity Fund -36.9 -14.4 -8.4 12.3

BSE 200 -41.0 -14.4 -6.9 9.2

BSE Mid Cap -54.0 -25.9 -17.9 7.3

BSE Sensex -37.9 -13.8 -4.9 11.7

S&P CNX Nifty -36.2 -11.1 -3.9 11.3

CNX100 -37.6 -12.5 -5.1 10.4

CNX Midcap -45.4 -16.2 -10.7 9.4

CNX Nifty Junior -45.6 -20.6 -12.2 5.0

BSE Small Cap -42.8 -15.7 -7.9 9.4

BSE 500 -58.6 -29.2 -21.0 12.0

S&P CNX 500 -40.0 -14.6 -7.6 9.5

Sources-sundram funds fact sheets)

57

Comment:

The above table shows a comparison between the Sundaram Taxsaver Fund and other similar

category funds and the market. It can be seen that Sundaram Taxsaver Fund has shown 22.8% as on 5

year’s performance, which is better than Sahara Tax Gain, HDFC Tax Saver, Birla Sun Life Tax

Saver and Tata Tax Saver. The average performance of similar category funds is 12.4% which is

lower than Sundram Tax Saver and all the market index has showed less then Sundram tax Saver

Mutual Fund.

D)Sundram BNP Balanced Fund GrowthPerformance (%)as on July 1, 2009 1 Month 3Month 6 Month 1 Year 3 Years

Sundram Balanced Fund 3.48 32.4 48.16 7.33 12.53

Tata Balanced Fund 4.34 31.22 49.79 12.65 16.16

SBI Magnum Balanced Fund 2.72 28.6 49.98 12.28 13.98

UTI Balanced Fund 4.09 27.11 45.08 12.05 10.58

Kotak Balanced Fund 3.49 23.43 38.11 7.07 11.27

ING Balanced Fund 3.21 27.21 45.99 5.43 12.55

ICICI Prudential Balanced Fund 3.53 21.87 35.72 3.35 7.82

JM Balanced Fund 0.93 29.08 52.86 -5.98 3.15

Average Performance Of Similar Fund 3.33 28.21 47.47 10.39 11.6

S&P Nifty 3.86 32.09 62.09 3.75 14.28

BSE Sensex 3.61 37.21 68.41 5.24 13.72

BSE 200 4.06 40.54 72.29 6.24 14.83

CNX 500 4.60 37.92 69.33 6.23 14.2

Comment:

58

E)Sundram BNP Paribas Money Fund GrowthPerformance(%) as on July 1,2009 1 Month 3 Month 6 Month 1 Year 3 Years

Sundram Money Fund 0.28 0.95 2.39 6.88 7.28

Taurus Liiquid Fund 0.25 0.74 1.64 5.78 NA

Religare Overnight Fund 0.2 0.44 0.95 4.36 NA

ING Liquid Fund 0.35 1.14 2.69 7.36 7.51

ICICI Prudential Liquid Plan 0.36 1.1 2.58 7.1 7.52

Canaro Robeco Liquid Plan 0.38 1.17 2.65 7.6 7.79

Average of Similar Funds 0.35 1.07 2.45 6.87 7.6

S&P Nifty 3.86 32.09 62.09 3.75 14.28

BSE Sensex 3.61 37.21 68.41 5.24 13.72

BSE 200 4.06 40.54 72.29 6.24 14.83

CNX 500 4.60 37.92 69.33 6.23 14.2

Comment:

F)Sundram BNP Paribas S.M.I.L.E FundPerformance(%) as on July 1,2009 1 Month 3 Month 6 Month 1 Year 3 Years

Sundram S.M.I.L.E Fund 3.97 49.77 76.49 14.98 18.74

Baroda Pioneer Fund 6.96 44.72 73.62 21.24 22.35

DBS Chola Mid Cap Fund 6.57 50.3 78.93 13.82 13.97

Birla Sun Life Equity Fund 4.03 41.81 66.73 12.33 17.55

Canara Robeco Multicap Fund 2.82 40.18 64.71 11.77 NA

Tata Growth Fund 6.59 47.64 72.04 1.35 13.43

DSP BlackRock Small &Midcap 3.86 43.51 64.07 10.1 NA

59

Average of Similar Funds 4.74 39.88 63.41 9.6 12.69

S&P Nifty 3.60 32.8 65.15 7.44 14.9

BSE Sensex 3.72 38.21 71.57 8.75 14.29

BSE 200 4.22 41.38 74.31 10.16 15.41

CNX 500 4.17 37.9 70.69 9.52 14.62

Comment

Track Record of Sundram BNP Paribas Mutual Fund With respect to Market Index

(Performance and AUM as on May31, 2009)Assets Under Management -13469 crore Assets Under Management-12413 crore

(End of month) (Average)

Fund/Index Launch

Period

One Year Three

Years

Five

Years

Since

Launch

Sundram Growth Fund Apr-97 -21.6 7.3 23.6 20.2

BSE 200 -13.0 11.2 23.6 14.0

S&P CNX 500 -9.6 10.7 23.9 ------

Sundram Select Focus July-02 -9.3 14.7 29.1 33.4

S&P CNX Nifty -8.6 13.1 24.5 25.1

60

S&P CNX 500 -9.6 10.7 23.9 26.7

Sundram Select Mid Cap July-02 -3.9 7.6 35.2 40.1

BSE Mid Cap -25.2 0.0 21.7 27.3

S&P CNX 500 -9.6 10.7 23.9 26.7

Sundram India Leadership July-04 -16.9 6.9 ----- 25.5

S&P CNX Nifty -8.6 13.1 ------ 24.1

S&P CNX 500 -9.6 10.7 ------ 23.4

Sundram SMILE Fund Feb-05 -8.1 11.0 ------ 20.8

CNX Mid Cap -18.4 6.8 ------- 14.6

S&P CNX 500 -9.6 10.7 ------- 23.4

Sundram Equity Multiplier Feb-07 -9.0 ------- -------- 5.3

CNX Mid Cap -18.4 ------- -------- 2.6

S&P CNX 500 -9.6 -------- -------- 4.8

Sundram Select Small Cap Feb-07 -18.4 ------- ------- -8.8

BSE Small Cap -26.4 ------- ------- -7.7

S&P CNX 500 -9.6 ------- ------- 3.3

Sundram Balanced Fund Jun-00 -3.6 8.5 18.0 15.5

CRISIL Balanced Fund Index 0.0 12.1 17.2 -------

S&P CNX 500 -9.6 10.7 23.9 16.5

Sundram Tax Saver Nov-99 0.8 14.6 35.9 22.6

BSE 200 -13.0 11.2 23.6 14

S&P CNX 500 -9.6 10.7 23.9 14.2

Sundram Capex Opportunities Sep-05 -14.4 10.5 ------- 19.6

61

BSE Capital Goods -9.3 17.5 ------- 27.2

S&P CNX 500 -9.6 10.7 ------- 13.1

Sundram Rural India May-06 -26.6 2.6 ------- 1.9

BSE 500 -14.7 9.9 ------- 3.8

S&P CNX 500 -9.6 10.7 ------- 4.5

Sundram Energy Opportunities Jun-08 -19.8 ------- ------- -10.8

BSE Oil & Gas -15.8 -------- ------- 0.2

S&P CNX 500 -9.6 -------- ------- -25.1

Sundram Financial Opportunities Jun-08 -------- --------- -------- 31.5

CNX Banks -------- --------- -------- 27.5

S&P CNX 500 --------- --------- --------- 0.3

Sundram Entertainment Opportu. Jun-08 -------- --------- -------- 31.3

CNX Media -------- --------- --------- -30.2

S&P CNX 500 -------- --------- --------- -2.8

Sundram Money fund Mar-00 8.3 ------ 8.0 7.7

CRISIL Liquid Fund Index 8.6 ------ 7.5 7.3

Sundram Ultra Short Term Fund Apr-07 8.8 ------- ------- 8.8

CRISIL Liquid Fund Index 8.6 ------- ------- 7.9

Sundram Bond Saver Dec-97 9.1 7.0 4.6 9.0

CRISIL Composite Bond Saver 8.8 6.7 5.0 -------

Sundram Monthly Income Plan Jan-04 6.6 5.6 7.1 6.9

CRISIL MIP Blended Index 7.5 8.5 8.3 7.2

(Sources-www.sundrambnpparibas.in)

62

III] COMPARISON OF SUNDARAM MUTUAL FUNDS WITH OTHER FUNDS AS

RANKED AND RATED:

A)Ranked:

1)Medium term Institutional plan:

S No Scheme Name Start Date Nav

End Date Nav Return

12 HSBC Income Inv Inst 10.00 9.94 -0.6413 Religare Active Income Fund Inst 10.00 9.67 -3.3011 ING Income Inst 10.00 10.02 0.204 Sundaram BNP Paribas Bond Saver Inst 12.57 14.07 11.973 Principal Income Inst 13.50 15.20 12.572 HSBC Flexi Debt Inst 10.53 12.15 15.4010 Tata Dynamic Bond B 13.40 13.76 2.721 ICICI Prudential Income Inst 24.23 30.48 25.819 DSPBR Strategic Bond Inst 1000.00 1039.74 3.978 JP Morgan India Active Bond Inst 10.01 10.49 4.737 Tata Income Plus HI 13.41 14.35 7.076 Kotak Flexi Debt Inst 10.08 10.92 8.395 ICICI Prudential Income Opportunities Inst 10.00 10.85 8.50

Ranking is taken on July 1,2009 By Value Research.Com

2)Hybrid Debt oriented Plan


End Date Nav Return

63


End Date Nav Return

20 ICICI Prudential Real Estate Sec Inst 9.34 9.51 1.7716 Kotak Wealth Builder Series 1 10.96 12.08 10.1615 Franklin Templeton Capital Safety 3 Yr 10.72 11.82 10.3414 Franklin Templeton FTF Series IX Plan A 9.65 10.72 11.1513 Sundaram BNP Paribas Capital Protection Oriented 1 5Y 10.21 11.35 11.2012 Franklin Templeton Capital Protection 3 Yr 10.61 11.81 11.2611 Birla Sun Life Capital Protection Oriented 5 Yrs 10.04 11.22 11.7510 UTI Capital Protection Oriented 3Y Retail 10.61 11.88 12.019 Franklin Templeton FTF Series IX Plan B 9.61 10.87 13.138 Franklin Templeton FTF Series I 60 Month 14.28 16.21 13.477 Franklin Templeton FTF Series VI-60 Months 11.31 12.84 13.556 Franklin Templeton FTF Series IV 60 Months 11.65 13.27 13.955 Franklin Templeton FTF Series VIII-60 Months Plan A 10.43 11.89 14.014 Franklin Templeton Capital Safety 5 Yr 10.39 12.08 16.283 Franklin Templeton Capital Protection 5 Yr 10.34 12.04 16.522 UTI Capital Protection Oriented 5Y Retail 10.37 12.09 16.581 Franklin Templeton FTF Series II 60 Month 12.86 15.25 18.5319 Birla Sun Life Capital Protection Oriented 3 Yrs 10.34 10.98 6.2218 SBI Capital Protection Oriented Fund Series I 9.71 10.57 8.8117 Sundaram BNP Paribas Capital Protection Oriented 1 3Y 11.03 12.01 8.96


3)Equity Tax Saving plan:

S No Scheme Name Start Date Nav End Date Nav Return

16 Tata Tax Saving 36.82 40.54 10.1015 HDFC LT Advantage 82.55 91.15 10.4214 Franklin India Index Tax 30.07 33.46 11.2913 Magnum Taxgain 40.82 45.65 11.8312 DBS Chola Tax Saver 10.62 12.13 14.2211 Sundaram BNP Paribas Taxsaver 29.18 33.44 14.6010 Birla Sun Life Tax Relief 96 62.08 71.43 15.06

64

S No Scheme Name Start Date Nav End Date Nav Return 9 HSBC Tax Saver Equity 9.16 10.61 15.868 Fidelity Tax Advantage 12.25 14.24 16.307 Religare Tax Plan 9.88 11.58 17.216 Franklin India Taxshield 121.50 144.68 19.085 HDFC Taxsaver 122.54 148.27 21.004 Reliance Tax Saver 11.76 14.30 21.623 Taurus Tax Shield 21.80 26.67 22.342 Sahara Tax Gain 20.20 25.68 27.141 Canara Robeco Equity Tax Saver 12.98 17.33 33.5120 ICICI Prudential Tax Plan 80.81 86.26 6.7419 DSPBR Tax Saver 10.88 11.73 7.8618 LICMF Tax Plan 22.13 24.11 8.9217 Baroda Pioneer ELSS 96 18.45 20.10 8.94


4)Equity Banking Plan:


End Date Nav Return

1 UTI Banking Sector Reg 18.04 27.66 53.33

2 Reliance Banking Retail 40.24 60.77 51.03

3 Sundaram BNP Paribas Financial Services Opportunities Ret

10.07 13.35 32.61

4 JM Financial Services Sector 9.67 8.77 -9.34Ranking is taken on July 1,2009 By Value Research.Com

5)Equity Specialty Plan:

S No Scheme Name Start Date Nav End Date Nav Return

6 Kotak Global Emerging Market 10.32 7.38 -28.475 Tata SIP 10.34 10.48 1.324 Sahara R.E.A.L 6.16 6.43 4.243 LICMF Systematic Asset Allocation 9.64 10.20 5.762 Tata SIP Fund II 9.77 10.36 6.031 Sundaram BNP Paribas Energy Opportunities 6.57 7.23 9.91


65

6)Debt Liquid Plus Inst.Plan:S No Scheme Name Start Date Nav End Date Nav Return 1 Fortis Money Plus Inst 12.22 13.39 9.622 Tata Treasury Manager HI 1082.38 1179.61 8.983 Templeton India Ultra Short Bond Super Inst 10.51 11.43 8.734 AIG India Treasury Super Inst 10.67 11.58 8.515 Templeton India Ultra Short Bond Inst 10.50 11.39 8.516 Sundaram BNP Paribas Ultra Short Term Super Inst 11.06 11.99 8.507 Reliance Money Manager Inst 1116.48 1210.78 8.458 AIG India Treasury Inst 10.67 11.56 8.409 UTI Treasury Advantage Inst 1102.09 1193.89 8.3310 Birla Sun Life Savings Inst 15.57 16.87 8.3211 HDFC Floating Rate Income ST Wholesale 13.97 15.13 8.3112 Religare Ultra Short Term Inst 11.29 12.22 8.3113 DSPBR Money Manager Inst 1154.66 1250.46 8.3014 DWS Money Plus Inst 10.18 10.27 8.1915 Fidelity Ultra Short Term Debt Super Inst 10.64 11.51 8.1816 Sundaram BNP Paribas Ultra Short Term Inst 11.02 11.92 8.1517 HDFC Cash Mgmt Treasury Advantage Wholesale 18.02 19.48 8.1418 ING Treasury Advantage Inst 11.09 11.99 8.1419 Canara Robeco Treasury Advantage Inst 13.56 14.65 8.0720 Fidelity Ultra Short Term Debt Inst 10.30 11.12 8.04


7)Debt Specialty Plan:

S No Scheme Name Start Date Nav End Date Nav Return 15 Tata FHF Series 5 36 Months Plan G 11.23 12.42 10.6814 Reliance FHF V 3Y Plan Series I Inst 10.67 11.82 10.7013 HDFC FMP 18M Jan 2008 Wholesale 10.23 11.33 10.7712 HDFC FMP 36M Jun 2007 Retail 10.83 12.00 10.81

66

S No Scheme Name Start Date Nav End Date Nav Return 11 HDFC FMP 18M Apr 2008 (2) Wholesale 10.03 11.14 11.0010 Sundaram BNP Paribas FTP 16M Inst 10.07 11.18 11.049 HDFC FMP 18M Apr 2008 Wholesale 10.04 11.15 11.058 HDFC FMP 36M Jun 2007 Wholesale 10.87 12.09 11.257 UTI Fixed Term Sr IV PIX May 08 10.05 11.19 11.286 SBI Debt Fund Series 18 Months 3 Retail 10.05 11.20 11.405 SBI Debt Fund Series 18 Months 3 Inst 10.05 11.20 11.414 ING Fixed Maturity Series XXXII Retail 10.74 12.01 11.833 Templeton FHF Series IV Plan A Ret 10.51 11.78 11.992 Templeton FHF Series IV Plan A Inst 10.53 11.80 12.111 ING Fixed Maturity Series XXXII Inst 10.78 12.11 12.38


B)Rated:

1)Equity Linked Saving Schemes:

For the period ending March 31,2009

1 YEAR PERFORMANCE

Scheme Name Ranking Change over last quarterReliance Tax Saver Fund HSBC Tax Saver Equity Fund Fidelity Tax Advantage Fund Sundaram TaxSaver HDFC TaxSaver DSP Blackrock Tax Saver Fund Franklin India Tax shield SBI Magnum Tax Gain Scheme 93 - GrowthUTI Equity Tax Savings Plan - GrowthTata Tax Saving FundICICI Prudential Tax plan - GrowthHDFC Long Term Advantage Fund - GrowthBirla Sun Life Tax Plan - GrowthKotak TaxSaver - GrowthFortis Tax Advantage Plan - GrowthPrincipal Personal TaxsaverBirla Sun Life Tax Relief 96 - GrowthPRINCIPAL Tax Savings Fund

2)Debt Schemes -Long Term:

67

For the period ending March 31,2009

1 YEAR PERFORMANCEScheme Name Ranking Change over last quarter

Canara Robeco Income SchemeICICI Prudential STP ICICI Prudential Income Fund IDFC D B F- Plan A Birla Sun Life Income Plus Fortis Flexi Debt Fund Kotak Bond Deposit IDFC SSIF - Invt. Plan Reliance Income Fund Reliance Short Term Fund DSP BlackRock Strategic Bond Fund DWS Short Maturity Fund HDFC Income Fund Templeton India Income FundTempleton India IBA - Plan A Birla Sun Life Income Fund LIC Bond Fund DSP BlackRock Bond Fund UTI Bond Fund HDFC HIFSundaram BNP Paribas Bond Saver HSBC Flexi Debt Fund - Ret PRINCIPAL Income Fund Tata Income Fund DWS Premier Bond Fund SBI Magnum Income

3)Ultra Short Term - Debt - IP Schemes

1 YEAR PERFORMANCEScheme Name Ranking Change over last quarter

Birla Sun Life Savings Fund - IP - GrowthICICI Prudential Liquid - I P - GrowthHDFC Cash Mgmt Fund - Treasury Advantage - WP - GrowthUTI Treasury Advantage Fund - IP - GrowthUTI Liquid Fund - Cash Plan - IP - GrowthBirla Sun Life Cash Plus - I P - GrowthReligare Ultra Short Term Fund - IP - GrowthHSBC Ultra Short Term Bond Fund - IP - GrowthDWS Insta Cash Plus Fund - IP - GrowthCanara Robeco Liquid - IP - GrowthSundaram BNP Paribas Ultra Short Term - IP - GrowthHDFC Liquid Fund - Premium Plan - GrowthTata Liquid Fund - HIP - GrowthJM High Liquidity - I P - GrowthPRINCIPAL Cash Mgmt Fund LO- I P - GrowthING Treasury Advantage Fund - IP - GrowthSBI Premier Liquid Fund - IP - GrowthTempleton India Ultra Short Bond Fund - IP - Growth

68

Reliance Liquid Fund - TP - IP - GrowthDWS Money Plus Fund - IP - GrowthTempleton India TMA - IP - GrowthDSP BlackRock Money Manager Fund - IP - GrowthCanara Robeco Treasury Advantage Fund - IP - GrowthIDFC Money Manager - Invest Plan - Plan B - GrowthFidelity Ultra Short Term Debt Fund - IP - GrowthReligare Liquid Fund - IP - GrowthIDFC Money Manager - Treasury Plan - Plan B - GrowthING Liquid Fund - IP - GrowthIDFC Cash Fund - Plan B - IP - Growth

2008:Top –End Presence In Value Research Rating For Equity Funds

Fund House 5 star 4star 3 star 2 star 1star Total #(5

&4star

Funds)

%

DSP Black Rock 2 2 0 0 0 4 4 100

Deutshe 2 0 0 0 0 2 2 100

Sundram BNP 2 4 2 0 0 8 6 75

Benchmark 1 1 0 0 1 3 2 67

SBI Mutual 2 3 2 1 2 10 5 50

Reliance Mutual 2 1 2 1 0 6 3 50

Sahara Mutual 1 1 0 2 0 4 2 50

IDFC 1 0 1 0 0 2 1 50

HDFC Mutual 0 5 2 4 0 11 5 45

ICICI Prudential 2 2 3 3 0 10 4 40

Canara Robeco 0 2 2 0 1 5 2 40

Baroda Pioneer 0 1 0 2 0 3 1 33

69

HSBC Mutual 0 1 1 0 1 3 1 33

Franklin Templeton 0 3 6 1 0 10 3 30

Birla Sun Life 0 4 10 1 0 15 4 27

Kotak Mutual 0 2 1 4 1 18 2 25

Tata Mutual 1 2 6 3 1 13 3 23

UTI Mutual 1 2 8 4 1 16 3 19

DBS Chola 0 1 1 1 3 6 1 17

Principal 0 1 3 3 1 8 1 13

ING Mutual 0 0 3 1 2 6 0 0

LIC Mutual 0 0 1 4 1 6 0 0

Taurus Mutual 0 0 3 1 0 4 0 0

Fortish Mutual 0 0 1 1 1 3 0 0

JM Mutual 0 0 1 1 1 3 0 0

Fidelity Mutual 0 0 1 0 0 1 0 0

The ratings are a composite measure of historical risk –adjusted returns based on the

weighted –average monthly returns for the past three- and five –years periods. Five stars

indicate that a fund is in the top 10 % of its category in terms of historical risk –adjusted

returns. Four stars indicate that a fund is in the next 22.5% of its category. Three stars

indicate that a fund is in the next 35% of its category. Two stars indicate that a fund is in the

next 22.5% of its category. One star indicate that a fund is in the bottom 10% of its category.

(Rating source: Value Research: analysis: In House; Value Research rating as on

December31, 2008)

70

Award Is Given By The ICRA To The Different Mutual Funds:

ICRA 5-STAR GOLD AWARD WINNERS 2009 - ONE YEAR PERFORMANCE

SchemeName RankingCategory AwardIDFC Dynamic Bond Fund - Plan A Open Ended Debt - Long TermIDFC Super Saver Income Fund - Investment Plan A

Open Ended Debt - Long Term

Tata Short Term Bond Fund Open Ended Debt - Short Term

Birla Sun Life Dividend Yield PlusOpen Ended Diversified Equity - Aggressive

Birla Sun Life MNC FundOpen Ended Diversified Equity - Aggressive

DSP BlackRock Top 100 Equity FundOpen Ended Diversified Equity - Aggressive

Fidelity International Opportunities FundOpen Ended Diversified Equity - Aggressive

UTI Dividend Yield FundOpen Ended Diversified Equity - Aggressive

Birla Sun Life Frontline Equity FundOpen Ended Diversified Equity - Defensive

ICICI Prudential Dynamic PlanOpen Ended Diversified Equity - Defensive

IDFC Imperial Equity FundOpen Ended Diversified Equity - Defensive

Reliance Equity FundOpen Ended Diversified Equity - Defensive

UTI Equity FundOpen Ended Diversified Equity - Defensive

UTI Opportunities FundOpen Ended Diversified Equity - Defensive

Franklin India Index Fund - NSE Nifty Plan

Open Ended Equity Index

Sundaram BNP Paribas Taxsaver FundOpen Ended Equity Linked Savings Scheme (ELSS)

LIC MF Floating Rate Fund - Short Term Open Ended Floating Rate FundTempleton India Government Securities - Composite Plan

Open Ended Gilt

Templeton India Government Securities - Long Term Plan

Open Ended Gilt

ICICI Prudential Flexible Income Plan Open Ended Liquid PlusKotak Flexi Debt Fund Open Ended Liquid PlusLIC MF Liquid Fund Open Ended Liquid PlusTata Floater Fund Open Ended Liquid PlusBirla Sun Life Liquid Plus - Institutional Plan

Open Ended Liquid Plus - Institutional Plan

Fortis Money Plus - Institutional PlanOpen Ended Liquid Plus - Institutional Plan

Lotus India Liquid Plus - Institutional PlanOpen Ended Liquid Plus - Institutional Plan

HDFC Multiple Yield Fund - Plan 2005 Open Ended Marginal EquityReliance Monthly Income Plan Open Ended Marginal Equity

71

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=RC056

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=HD071

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=LT019

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AB038

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BM054


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TA142

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=LC043

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KM082

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PI056

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KP060

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KP060

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TM006



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SN006



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=UT191



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AZ198


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AC061


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=FD027

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DS020

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AP003






ICRA 5-STAR GOLD AWARD WINNERS 2009 - THREE YEAR PERFORMANCE

SchemeName RankingCategory AwardTata Balanced Fund Open Ended BalancedBirla Sun Life Income Plus Open Ended Debt - Long TermIDFC Dynamic Bond Fund - Plan A Open Ended Debt - Long TermTata Short Term Bond Fund Open Ended Debt - Short Term

ICICI Prudential Infrastructure FundOpen Ended Diversified Equity - Aggressive

IDFC Premier Equity FundOpen Ended Diversified Equity - Aggressive

Birla Sun Life Frontline Equity FundOpen Ended Diversified Equity - Defensive

HDFC Growth FundOpen Ended Diversified Equity - Defensive

ICICI Prudential Dynamic PlanOpen Ended Diversified Equity - Defensive

Kotak 30 FundOpen Ended Diversified Equity - Defensive

Sundaram BNP Paribas Select Focus Fund

Open Ended Diversified Equity - Defensive

Franklin India Index Fund - NSE Nifty Plan

Open Ended Equity Index

SBI Magnum Tax Gain Scheme 93Open Ended Equity Linked Savings Scheme (ELSS)

Canara Robeco Floating Rate Fund - Short Term

Open Ended Floating Rate Fund

PRINCIPAL Floating Rate Fund - Flexible Maturity Plan

Open Ended Floating Rate Fund

Birla Sun Life Gilt Plus Regular Plan Open Ended GiltIDFC Government Securities - Investment Plan A

Open Ended Gilt

Kotak Flexi Debt Fund Open Ended Liquid PlusReliance Liquidity Fund Open Ended Liquid PlusCanara Robeco Liquid - Institutional Plan

Open Ended Liquid Plus - Institutional Plan

ICICI Prudential Liquid - Institutional PlanOpen Ended Liquid Plus - Institutional Plan

HSBC Monthly Income - Savings Plan Open Ended Marginal EquityLIC MF Floating Rate - Monthly Income - Plan A

Open Ended Marginal Equity

DSP BlackRock Technology.com Fund Open Ended Sectoral - Technology

72

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DS010



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=HS030


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=CM033







http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ID089

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ID089



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SB211







http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=HD001

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AC061







Limitations

Less awareness in general masses is one of the biggest hurdles of the success of the

Mutual Fund.

Despite of various opportunity in mutual fund industry the general investor is right now

not fully aware with the mutual fund.

People do not feel like investing large amounts in mutual funds.

I was unable to collect full information of clients as they did not feel free to disclose their

details with me.

The time was short to learn and gain better knowledge of the working of the Sundram

Finance.

Office of Sundram Finance branch was situated at Barahakhamba (Connaught Place) a

very crowdy place and very reputed place so that the customers are very time oriented.

I have a limit sample size (25) only.

73

Recommendations

· It is found that there is less awareness of Mutual Funds among the general public,

they are totally unaware of the benefits it provides above the bank and other

investments. People should be made aware about its advantages by various

techniques like publishing it in common magazines which are mostly read by the

general public like India Today.

· People are scared about investing in such funds, they think that its very risky and

such large amounts of their money will be lost, this thinking should be removed by

the financial Institutions who help investors in investing their money.

· Even the people employed in the Financial Institutions has very little knowledge of

different funds available in the market and their ranking in the market because of

which investors who are even ready to invest, but because of no full information

which can satisfy them; they also fear to invest their money. This should be

avoided. Employees should be properly trained.

· Investors feel their personal information is leaked out, the institutions fail to

provide to the investor’s full information secrecy.

· Employees in the Financial Institutions do not hear to the investors and doesn’t

provide correct advice, this should be avoided.

74

Conclusion

Thus, I conclude that Mutual Funds are though subject to market risk but

are better than any other direct investments. Here risk is very well diversified and managed

by Fund Managers. Fund Managers keep themselves fully aware of the current market

scenario and keep on updating their fund portfolios, the investor doesn’t have to consider

about such risks. The investors get such opportunities as switching to any other fund any day

they want..

I saw Sundaram Mutual Funds as the one having most well

diversified portfolio. The risk is fully diversified. Sundaram- Tax Saver, Select Mid Cap,

Select Focus, Growth, S.M.I.L.E funds are doing quite well in market. Investors who are

Equity players and also want a secured investment of their money can go in for this type of

fund.

75

Bibliography

1. SEBI – Investor book

2. Sundaram Fund Fact Sheet

3. Other Fund Fact Sheets

4. Economic Times

5. Mutualfundsindia.com

6. Outlookmoney.com

7. Wiseinvestoronline.com

8. Sundaramfinancials.com

9. Research Value

76