DBS Chola Multi-Cap Fund (G) Underperforms The Sensex Over All Time Periods

Background: DBS Cholamandalam AMC Limited is an assets management company, which offers mutual funds to retail and institutional investors. The company was set up in 1996, as a joint venture with Cazenove Investment management of the UK. In 2001, the Muragappa Group acquired Cazenove’s stake in the company; today CAMC is a subsidiary of Cholamandalam Investment & Finance Company Limited (CIFCL). CAMC is known for its prudent philosophy in fund management. DBS Chola Triple Ace, India’s first AAA-rated mutual fund scheme, has not only retained its rating since inception, but also has a consistent track record of dividend payments, Based in Mumbai. The fund house manages over Rs. 3829.35 crore of assets as on September 2007.

DBS Chola Multi-Cap Fund (G) an open-ended equity diversified scheme launched in December 2004. The objective of the scheme is to provide long-term capital appreciation by investing in a well-diversified portfolio of equity & equity related instruments across all ranges of market capitalization. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs.22.23 as on 26 October 2007.

Portfolio: The total net assets of the scheme increased by Rs.1.08 crore to Rs.36.75 crore in September 2007.

DBS Chola Multi-Cap Fund (G) took fresh exposure to ten stocks in September 2007. The scheme has purchased 9,955 units (2.88%) of ICICI Bank, 8,977 units (2.34%) of Oil & Natural Gas Corpn, 34,900 units (2.30%) of Oriental Bank of Commerce, and 30,124 units (1.65%) of Deccan Chronicle Holdings in September 2007.

The scheme completely exited from Bank of Baroda at 27593 units (2.07%), NIIT Technologies at 16518 units (1.43%), and Birla Corporation at 16448 units (1.34%) in September 2007.

Sector-wise, the scheme took fresh exposure to Banks - Private Sector at 2.88%, Oil Drilling / Allied Services at 2.34%, Chemicals at 1.63%, Electronics – Consumer at 1.52% in September 2007.

Sector-wise the scheme completely exited from Cement - North India at 1.34% in September 2007.

The scheme had highest exposure to Reliance Industries with 8,594 units (5.37% of portfolio size) followed by Bharti Airtel with 16,438 units (4.21%), Mahindra & Mahindra with 16,477 units (3.37%) among others in September 2007.

It reduced its exposure to Siemens by selling 6,987 units to 1,005 units (by 2.50%), Ranbaxy Laboratories by selling 14,961 units to 6,005 units (1.59%), Hindustan Unilever by selling 19,775 units to 30,157 units (1.12%) among others in September 2007.

Sector-wise, the scheme had highest exposure to Computers - Software – Large at 8.73% (9.63% in August 2007), followed by Telecommunications - Service Provider at 8.63% (8.38%), Banks - Public Sector at 7.45% (6.65%) and Refineries at 5.37% (4.40%) among others in September 2007.

Sector wise, the scheme had reduced exposure to Electronics – Components to 2.50% (by 87.11%), Pharmaceuticals - Indian - Bulk Drugs & Formln to 1.93% (by 40.12%), Computers - Software - Medium / Small to 1.72% (by 36.75%) among others in September 2007.

Performance: The scheme underperformed the category average over all time periods. It has underperformed the Sensex over all time periods.

Over three-month period ended as on 26 October 2007, the scheme posted 9.75% of returns underperformed the category average of 15.65%. It underperformed the Sensex during the same period.