TAURUS SHORT TERM INCOME FUND February 2011

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2 TAURUS SHORT TERM INCOME FUND February

3 Taurus Short Term Income Fund 3

4 Indian Fixed Income Markets Key Events of January 2011 : RBI Presented Its Third Quarter Policy Review in January wherein it: Increased Repo and Reverse Repo Rate by 25 basis points each No Change in Bank Rate or CRR announced Highlighted Inflation as continuing to be a dominant concern and baseline projection for March 2011 revised upward to 7.70% from 5.50% GDP growth rate of 8.50% for (with upside bias)remained unchanged Expressed concerns on current account deficit and the fiscal situation 4

5 Indian Fixed Income Markets Key Domestic Economic Events for January 2011: IIP Numbers for November 2010 printed at 2.70% ( expectation of 6.60%) WPI for December 2010 printed at 8.43% Key Global Events : ECB keeps rates unchanged at 1.00 % BOE keeps rates unchanged at 0.50% and asset purchase target to GB 200 billion Other G7 nations like US, Canada and Japan kept its target rates unchanged UK GDP data shows a surprise decrease at 0.50% Quarter on Quarter 5

6 Rate and Liquidity Tracker Particulars Dec-10 Jan-11 NSE MIBOR FIMMDA 3M CP FIMMDA 12M CP Year GOI Year AAA Bond

7 Indian Fixed Income Markets Outlook: Liquidity may remain in negative zone but may be close to RBI s band of 1% of NDTL Yield Curve likely to steepen in the shorter end of the yield curve Benchmark GOI and Corporate Bonds likely to trade in a range bound manner 7

8 Why Taurus Short Term Income Fund? Investment strategy made keeping in mind the interest rate scenario and prevailing liquidity situation. Emphasis on superior credit rating & credit quality of the portfolio. Investments primarily in CD & CP instruments. The average maturity of the portfolio would be maintained at less than 1 yr. Ideal for investors with intermediate term investment horizon of 3 to 6 months with low risk appetite. The fund manager would endeavour to generate stable returns which are higher than that of liquid plus funds thru cherry picking & active management. 8

9 Investment Strategy Will maintain a Low portfolio duration to minimize interest rate risk/volatility. Portfolio concentration will be towards money market instruments so as to ensure a liquid portfolio Investments in short term instruments having highest short term rating/aa+ or higher rating for longer dated instruments Focus on maintaining a consistent and stable performance 9

10 Portfolio as on 31 st January 2011 Sr No Name of the Scrip Rating % of Net Asset Certificate of Deposit 1 Canara Bank P Total Certificate of Deposits Commercial Paper 1 Future Capital Financial Ser Ltd A Essar Shipping Ports & Logistics Ltd PR India Infoline Ltd A Reliance Capital Ltd A Total Commercial Papers CBLO Cash and Cash Receivables 0.14 Total

11 Sector Allocation as on 31 st January 2011 Cash&Cash Rec, 0.14% Certificate of Deposit, % CBLO, 16.20% Commercial Paper, 68.21% 11 Sector Percentage Allocation Certificate of Deposit 15.45% Commercial Paper 68.21% CBLO 16.20% Cash & Cash Receivables 0.14%

12 Scheme Details ( as on 31 st Jan 11) 12 Particulars Remarks Type of Scheme An open end Income scheme Investment Objective To generate income and capital appreciation with low volatility by investing in a diversified portfolio of short term debt and money market instruments Money Market Instruments : 65 to 100% Asset Allocation Pattern Debt instruments maturing within 1 year : 0 to 30% Debt Instruments with maturity between 1 to 3 years : 0 to 15% (Money Market instruments include cash, CBLO, Repo, CP, CD, Treasury Bills & Govt Securities) Benchmark index Crisil Short Term Bond Fund Index Load Structure Exit Load: 0.25% if exited before 1 month & Nil if exited after 1 month Minimum Investment Amount Rs 5000/- and in multiple of Rs 1000/- thereof Options Growth & Dividend (Payout & Reinvestment) Dividend Frequency Monthly Record Date 3rd Friday of every month or immediately following Business day, if that day (i.e. 3rd Friday of every month) is not a Business day. Face Value Rs per unit NAV Growth & Dividend AAUM Crs Average Maturity 0.23 yrs Fund Manager Rahul Pal & Co-Fund Manager - Pankaj Jain

13 About Taurus Mutual Fund 13 13

14 Why Taurus Mutual Fund? It's a fund house on the move Fastest growing Mutual Fund during F.Y Managing an AAUM of Rs crs as on 31/1/2011. Product basket comprises of 6 Equity Funds, 1 ELSS, 4 Fixed Income Funds and one Monthly Income Plan besides FMPs. Launched Taurus Ethical Fund in April 2009 and Taurus Nifty Index Fund & Taurus MIP Advantage in June Taurus Liquid Fund and Taurus Ultra Short Term Bond Fund rated as AAAf by CRISIL for credit quality of the portfolio. Two equity funds 'Taurus Tax Shield' and 'Taurus Infrastructure Fund' bagged the prestigious Business World Best Mutual Funds Awards for the year Professional Service Providers: Registrar & Transfer Agent : Karvy Computershare Pvt. Ltd Custodian: HDFC Bank Ltd Fund Accountant : Deutsche Bank AG 14

15 Our Schemes Our Schemes 15 EQUITY Taurus Starshare Taurus Bonanza Fund Taurus Discovery Fund Taurus Infrastructure Fund Taurus Ethical Fund Taurus Tax Shield (ELSS) Taurus Nifty Index Fund DEBT Taurus Short Term Income Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund Taurus MIP Advantage Taurus Liquid Fund Taurus Gilt Fund Taurus FMP Schemes

16 Board of Directors of Taurus AMC Mr. J. P. Kundra - Former MD, State Bank of India Mr. M.G. Gupta - Former Addl Controller General of Accounts,Govt. of India Maharaja Jai Singh From the Royal family of Jaipur / Hotelier Mr. Lalit Bhasin - Promoter Director Mr. Vijay Sood - Ex Investment Banker, HSBC (Asia Pacific) Mr. R K Gupta- MD, Former MD-PNB Mutual Fund 16

17 Key Management Personnel Mr. Waqar Naqvi: Chief Executive (AICWA, MBA, 19 years exp) Mr. Sanjay Parikh: Chief Operations Officer(CA, CFA, 19 years exp) Mr. Sadanand Shetty: Sr. Fund Manager-Equity(M.Com, PGDFA, 16 years exp) Mr. Rahul Pal: Head- Fixed Income (B.Com, C.A., 9 years exp) Mr. V. Sasidhar : Head-Customer Service (M.Com, 22 years exp) Mr. Nazish Ahmed : Head- Marketing(M.Com, MBA, 11 years exp) Mr. Ramesh Kabra : Head- Product Development (B.Sc., M.A. (Eco), 30 years exp) 17

18 Fixed Income - Fund Manager's Profile Mr. Rahul Pal- VP & Head (Fixed Income)- B.Com & C.A. Worked with Sundaram BNP Paribas Mutual Fund as Fund Manager (Fixed Income) for 6 years and with IDBI in Fixed Income for 3 years. Total work ex of over 9 years. Manages Taurus Ultra Short Term Bond Fund, Taurus Short Term Income Fund & Taurus MIP Advantage (Debt Portion). Mr. Pankaj Jain - Fund Manager, Fixed Income. PGDBM from IIM Bangalore. B.E.(Mechanical) from VNIT, Nagpur. Worked with Edelweiss Mutual Fund as Fund Manager (Fixed Income). Worked with Edelweiss Securities in Debt & Forex Management for 2.5 years. Prior to that he has worked with State Bank of India as Forex Trader for 2 years. Total work experience of over 5 years. 18

19 Risk Factors Scheme Nature : Taurus Short Term Income Fund is an open-end debt scheme. Scheme Objective: to generate Income & capital appreciation with low volatility by investing in a portfolio of short term debt & money market instruments Allocation: Money market instruments: %, Debt Instruments maturing within 1 yr : 0-30%, Debt instruments with maturity between 1 to 3 years: 0-15% Statutory Details: Taurus Mutual Fund has been constituted as a Trust under the Indian Trust Act, 1882 Sponsor: HB Portfolio Ltd. Trustee: Taurus Investment Trust Company Ltd., Investment Manager: Taurus Asset Management Company Ltd. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the scheme may go up or down depending upon the factors and forces affecting the securities market. There can be no assurance that the scheme's investment objectives will be achieved. The past performance of the mutual fund is not indicative of the future performance of the schemes. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs.2 Lacs made towards setting up of the mutual fund. Taurus Short Term Income Fund is only the name of the scheme and does not in any manner Indicate the quality of the scheme, its future prospects and returns. There is no guarantee or assurance as to any returns on investments of the unit holders. All dividend distributions are subject to the investment performance of the scheme. The investment made by the scheme is subject to external risks on transferring, pricing, trading volumes, settlement risks etc. of securities. Please read the Scheme Information Document /Statement of Additional Information 19 / Key Information Memorandum carefully before investing.

20 Disclaimer Any information contained in this presentation does not constitute and shall be deemed not to constitute an advice, an offer to sell / purchase or as an invitation or solicitation to do so for any security of any entity and further, Taurus AMC / sponsors / employees / directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of any information that may be displayed in this presentation from time to time. Recipients of the information contained herein should exercise due care and caution and read the Scheme Information Document / Statement of Additional Information (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained herein. Views expressed in this presentation are not necessarily those of Taurus AMC. They do not constitute any guidelines or recommendation on the course of the action to be followed. Certain information contained in the presentation may have been obtained from sources published by third parties. Neither the AMC, Trustees, The Fund nor any of their officers, employees, personnel, directors assume any responsibility for the accuracy, completeness, adequacy or reliability of such information and hereby disclaim any liability with regard to the same. The material contained in this presentation cannot be reproduced or quoted anywhere without express written consent of Taurus AMC. Businessworld India's Best Mutual Funds Awards methodology **: For Equity Tax Planning category, all funds compliant with Section 80C of the IT Act were included. Data for the past 3 years were considered. Methodology used to rank them is based on risk-adjusted returns but widened to take a composite measure of the returns a fund generates and the risk it takes. For Best turnaround manager: Funds that moved from D10 decile in end-2008 to D1 in end-2009 were taken, after which they were ranked on scale of change in their one-year returns For complete details on the methodology please refer to 20

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