DSP BlackRock India (The Infrastructure Growth and T.I.G.E.R. Fund Economic Reforms Fund) Open Ended Diversified Equity Scheme JUNE 2011 Scheme Performance (CAGR as on May 31, 2011) Scheme Objective DSP BlackRock India T.I.G.E.R Fund An open ended diversified equity Scheme, seeking to Period (DSPBRITF) - Regular Plan (Growth Option) BSE 100^ generate capital appreciation, from a portfolio that is Last 1 year (1.99%) 7.52% substantially constituted of equity securities and equity related securities of corporates, which could benefit Last 3 years 1.81% 3.83% from structural changes brought about by continuing Last 5 years 11.68% 12.53% liberalization in economic policies by the Government Since Inception 23.67% 20.99% and/or from continuing investments in infrastructure, both by the public and private sector. NAV / Index Value (May 31, 2011) ` 43.977 9,720.96 SIP Returns (As on May 31, 2011) DSPBRITF BSE 100^ Why Invest? Period INVESTMENT VALUE (Rs.) CAGR VALUE (Rs.) CAGR Invests in companies which will gain from the l 1 Year 12,000 11,073 (14.05%) 11,763 (3.65%) governments policies on infrastructure growth and 3 Year 36,000 42,349 10.86% 45,674 16.12% economic reforms Portfolio to benefit from increased government l 5 Year 60,000 72,302 7.40% 77,433 10.15% spending on infrastructure and increased private Inception 83,000 1,38,461 14.56% 1,36,361 14.12% participation and revival in the corporate Capex cycle Start date of SIP 11th June, 2004 The portfolio is well diversified across sectors, market l capitalisation and between private and PSU^Benchmark. “Since inception” returns are calculated on ` 10/- invested at inception, viz. date of companiesallotment (11th June, 2004). All returns are for Regular Plan - Growth Option.The SIP investmentreturns table assumes monthly investments of ` 1,000 being invested since the Date of Allotment. l track record of over 5 years Has aThe SIP returns are computed on the assumption that the monthly installments were receivedacross time periods from the start date of SIP. The CAGR is computed based on IRR since the SIPinstalments are received at different intervals across the SIP period. XIRR calculates internal rateof return for a series of cash flows. The benchmark returns are computed on the assumption thatthe value of the benchmark index is the price of one unit and “Since inception” returns arecomputed from the “Start date of SIP”. Past performance may or may not be sustained in futureand should not be used as a basis for comparison with other investments. Asset Allocation Equity and Equity related securities - 90% - 100%. Debt, Dividend History - DSPBRITF (Regular Plan) Securitised Debt and Money market securities - 0% - 10% ADR, GDR and Foreign securities - 0% - 25% Record Date Dividend per Unit (Rs.) Face Value (Rs.) NAV (Rs.)* 09-Sep-10 1.25 10.000 21.035 19-Jun-09 2.00 10.000 17.299 22-Feb-08 5.00 10.000 26.965 Scheme Facts (as on May 31, 2011) 21-Mar-07 4.50 10.000 21.964 27-Feb-06 4.50 10.000 21.720 Scheme AUM (`): 2,144.53 Cr. 11-Apr-05 1.50 10.000 13.850 Scheme NAV (`): 43.977#Post declaration of the dividend, the NAV of the scheme will fall to the extent of the dividendpay out and statutory levy (if any). *NAV at the time of declaration. For complete list of dividends, Launch Date: 11 June 2004visit www.dspblackrock.com. Past performance may or may not be sustained in future andshould not be used as a basis for comparison with other investments. Benchmark: BSE 100 DSP BlackRock Mutual Fund: Awards and Accolades Min. Initial Investment (`): 5,000 (R.P.) Standard Deviation^: 28.79% NDTV Profit Mutual Fund Awards 2010 Beta^: 0.91 DSP BlackRock Mutual Fund awarded Fiduciary Leadership Award R-Squared^: 94.34% Period: 5 years ending June 30, 2010; 15 fund houses eligible. Sharpe Ratio^: 0.58 DSP BlackRock Top 100 Equity Fund – Winner Category: Equity Large Cap. Total 17 Schemes eligible. Treynor Ratio^: 0.18 Period: 3 year performance ending June 30, 2010. ^Since Inception Ratios; #Regular Plan - Growth Option CNBC-TV18 CRISIL Mutual Fund Of The Year Awards 2011 DSP BlackRock Small and Mid Cap Fund – Winner Category: Small and Mid Cap Funds Schemes. Total 24 Schemes eligible. Period: 1 year performance ending Dec 31, 2010 Outlook Money Awards 2010 Equity Fund House Of The Year Award Category: Best Wealth Creator Award (Sub-category: Best Equity Fund House) Period: 3 years ending June 30, 2010 No. of eligible fund houses: 12 Past performance is no guarantee of future results.
Equity Market Outlookl market performance during May remained lackluster on the back of weak global cues. The expected withdrawal of the quantitative easing in the US resulted inEquity reversal of equity flows from emerging markets back to developed markets. India was no exception to this phenomenon with FII flows turning negative YTD.Domestically, inflation remains a concern with April end inflation at 8.66% much above the comfort level of the Reserve Bank of India (RBI). The RBI hiked both repo andl reverse repo rates by 50 basis points clearing indicating their intention of controlling inflation even at the cost of slightly lower growth going forward. While Indias GDP grew at 8.5% in FY-2011, the Q4 GDP growth stood at 7.8%, indicating a deceleration. But with softening of commodity prices globally and expectations that the interest rate cycle is peaking out, there could be some respite.The corporate earnings growth has remained in line with expectations, reinforcing India’s strong secular growth dynamics. But on the back of higher input costs and highl wage growth Indian companies are showing some signs of margin pressure.l equity market valuations at 14.4 (x) PE for FY12 looks reasonable with FY12 current earnings growth expectations of around 18%.Indian(Source: Morgan Stanley Research, IIFL Research, Bloomberg, Internal as of May 31, 2011) Portfolio Snapshot (As on May 31, 2011) Features Top 10 Stocks % to Net Assets Top 10 Sectors % To Net Assets • Minimum investment and minimum additional purchase - Regular Plan: Rs. 5,000/- and Rs. 1,000/- thereafter. Reliance Industries 4.63% Banks 16.26% - Institutional Plan: Rs. 1 crore and Rs. 1,000/- thereafter ICICI Bank 4.19% Industrial Capital Goods 10.86% Havells India 3.85% Petroleum Products 8.59% • Options available (for both plans) • Growth Bharat Heavy Electricals 3.25% Power 7.95% • Dividend - Payout Dividend - Reinvest Dividend Cummins India 3.08% Oil 6.32% Oil & Natural Gas Corpn 3.07% Consumer Durables 5.27% • Entry load: Nil Larsen & Toubro 3.03% Gas 4.90% • Exit load (both plans): ING Vysya Bank 2.93% Construction Project 4.85% For holding period < 12 months: 1%; GAIL (India) 2.53% Industrial Products 4.03% For holding period >= 12 months - NIL Coal India 2.44% Cement 3.69% DisclaimersNDTV PROFIT MUTUAL FUND AWARDS 2010: DSP BlackRock Mutual Fund has won the Fiduciary Leadership Award at NDTV Profit Mutual Fund Award 2010. This award was toidentify the fund family most focused on acting in investors’ interest in its conduct. Top 15 fund houses in terms of assets were considered for the award excluding fund housespenalized by SEBI for any irregularity. The parameters for the award included track record of launching unnecessary new funds, relatively lower expenses compared to other fundsin its category, overall investor base (Based on number of folios in relation to assets) and disclosure standards. This was based on five years data as on June 30, 2010. DSP BlackRockTop 100 Equity Fund has won the NDTV Profit Mutual Fund Award 2010 in the Category – Equity Large Cap. The basis of the award was superior risk-adjusted performance over thepast 3-years and the past 1-year as on June 30, 2010. The Large Cap Equity Fund category is classified based on their portfolio attributes. Funds with atleast 3-year performancehistory and more than Rs 50 crore of average AUM in the past 6 months were considered. Funds belonging to the fund houses penalized by SEBI for any irregularity were excluded.Based on this criterion, only 17 Large-Cap Equity Funds were eligible for the award. Ranking Entity: Value Research. CNBC TV18 - CRISIL Mutual Fund of the Year Awards 2011:DSP BlackRock Small and Midcap Fund was the only scheme that won the CNBC TV18 - CRISIL Mutual Fund of the Year Award in the Small and Mid Cap Funds category. In total 24schemes were eligible for the award universe. Schemes present in all four quarterly CRISIL Mutual Fund Ranking were considered for the award. The award is based on consistency ofthe scheme’s performance in the four quarterly CRISIL Mutual Fund Rankings released during the calendar year 2010. The individual CRISIL Mutual Fund Ranking parameter scoresaveraged for the four quarters were further multiplied by the parameter weights as per the CRISIL Mutual Fund Ranking methodology to arrive at the final scores. A detailedmethodology of the CRISIL Mutual Fund Ranking is available at www.crisil.com. Past performance is no guarantee of future results. Rankings and Award Source: CRISILFundServices, CRISIL Ltd. Outlook Money Awards 2010: DSP BlackRock Mutual Fund has won the Best Equity Fund House Award at Outlook Money Awards 2010. Category: BestWealth Creator Award- This category was subdivided into three parts: Best Fund House, Best Equity Fund House and Best Debt Fund House. Shortlisting Criteria: AUM of Rs 15,000crore as on 30 June 2010; At least 40 per cent of the equity funds (or debt funds if the fund house chose to focus only on debt funds) must have conformed to the tenure andminimum investment eligibility criteria of Outlook Money risk-return rankings. Alternately, the fund house must have been ranked the previous year; The MF house was to have atleast one scheme each in the large- and mid- cap categories for it to be considered in the Best Mutual Fund and Best Equity Fund House categories; Minimum track record of threeyears for all schemes; Returns were adjusted for risk; Sector schemes were not considered; Outlook Money mutual fund rankings were used for this analysis. Following this, short-listed fund houses/AMCs were mailed questionnaires to gather specific information, both quantitative and qualitative. Only fund houses/AMCs that reverted with filledquestionnaires competed in these awards. If any question was unanswered, the fund house/AMC would be given the lowest mark against that evaluation parameter. EvaluationCriteria: The questionnaires sent to the fund houses/AMCs were based on an evaluation process that considered the following parameters: Quantitative- How had the fundhouse/AMC performed vis-à-vis the category average? How many schemes were in the top quartile?; Qualitative- The facilities that the fund house/AMC offered and thesatisfaction level of investors. Disclaimer: Outlook Money does not accept responsibility for any investment decision taken by readers on the basis of information provided herein.The objective is to keep readers better informed and help them decide for themselves. Ranking Entity: Outlook Money. DSP BlackRock Top 100 Equity Fund (DSPBRTEF) is anopen ended growth Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of the100 largest corporates, by market capitalisation, listed in India. Asset Allocation: Equity & equity related securities: 90%-100%; Debt, securitised debt & money marketsecurities: 0%-10%. DSP BlackRock Small and Mid Cap fund (DSPBRSMF) is an open ended equity growth scheme, primarily seeking to generate long term capital appreciationfrom a portfolio substantially constituted of equity and equity related securities, which are not part of top 100 stocks by market capitalization. From time to time, theInvestment Manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. Asset Allocation: Equity and equityrelated securities which are-(A) not part of top 100 stocks by market cap: 65% - 100%, (B) in the top 100 stocks by market cap: 0% - 35%; Of (A) & (B), investments in ADRs, GDRs& foreign securities: 0% - 25%; Debt and Money Market Securities: 0% - 10%. DSP BlackRock India T.I.G.E.R Fund (The Infrastructure Growth and Economic Reforms Fund)(DSPBRITF) is an open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equityrelated securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or fromcontinuing investments in infrastructure, both by the public and private sector.Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors areDSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee CompanyPvt. Ltd. Investment Manager: DSP BlackRock Investment Managers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risksand there can be no assurance that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up ordown depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of theScheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no singleinvestor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of theaforesaid point (ii) at the end of the prescribed period, the investor’s holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. The names of the Schemes donot in any manner indicate the quality of the Schemes, their future prospects or returns. For scheme specific risk factors, please refer the SID. For more details, please referthe Key Information Memorandum cum Application Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the SchemeInformation Document and Statement of Additional Information carefully before investing