Sundaram Select MidcapOctober 2012

1For Private Circulation Only

2

Mutual Fund Investments are subject to market risks, read all scheme related documents

carefully . Copy of the SAI, SID, key information memorandum and application form may also be

obtained from the offices / investor service centres of Sundaram Asset Management, its distributors

and at www.sundarammutual.com

All mutual funds and securities investments are subject to market risks, and there can be no

assurance or guarantee that fund's objectives will be achieved. NAV may go up or down,

depending on the factors and forces affecting the securities market. Main types are market risk,

liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired.

There is uncertainty of dividend distribution and risk of capital loss. Past performance of the

Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors

in the schemes are not being offered any guaranteed or indicated returns.

Sundaram Select Midcap is only the name of the scheme and do not in any manner indicate either

quality or future prospects and returns.

For detailed disclosures on risk factors and disclaimers refer slide 19

Global Outlook – Uncertain times

� Global recovery continues, but has witnessed weakening in its pace. The Eurozone area is

relatively stable, but will remain volatile until clear steps to a banking union and fiscal

integration arise.

� Greece continues to remain in the spot. Though it has secured a deal on a EUR13.5bn. of

expenditure cuts, the Greek budget for 2013 paints a grim picture with govt. debt touching

189% of GDP.

� The Chinese economy sees volatility on account of their re-balancing effort and a regime

change at the Polit bureau level.

� Fiscal cliff means lower spending and higher taxes. Though in an ideal scenario this may

sound positive, the effect of the cliff on the economy would be negative in the current

circumstances. Spending cuts and tax rises in a phase of recovery would undermine growth

efforts and drive the economy into a further recession.

� In addition to the growth in the Emerging & Developing Economies (EDEs), global growth

rests now on two key events:

� Actions of Eurozone policy makers to ease the financial conditions in the periphery;

� The US avoiding the ‘fiscal cliff’ implied by the existing tax laws.

3

Domestic Outlook – Uncertain times

• On the negative side, the spate of political scandals continue to hinder policy matters.

• On the positive side, we have seen few favourable announcements from the new FM such as FDI in

retail, setting up of National Investment Board.

• We believe that Indian economy is close to the bottom and we expect gradual recovery as we get into

CY13. Key drivers for the recovery would be:

– RBI has indicated high probability of rate-cut in Jan’2013

– Commodity prices have been correcting due to global slowdown, which should help both inflation

as well as twin deficits

– With significant INR depreciation, Indian markets once again have become attractive from foreign

investors’ perspective

• Industrial activity witnessed a pickup in growth to 2.9%, but remained muted with little improvement on

the reform front.

• Though the monsoons were delayed, the latter part of the monsoon season saw a pickup that would

greatly help in augmenting the Rabi crop.

• FY13 is likely to see growth in the range of 5.5 – 5.7% and a probable bottoming out.

• Inflation for FY13 is likely to average ~7.8%.

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Product Strategy

Stock Strategy

• 45 – 60 stocks

• Low turnover

• No trading calls

• Stocks that grows in sustainable manner

Sector Strategy

• Not much deviant bets

• taking active sector, stock and cash calls with strict adherence to mid-cap mandate

5

Sundaram Select Midcap

� Cautious on commodities

• China slowdown poses a significant downside risk to

global commodity prices

• With little support from rest of the globe, commodity

prices can remain under pressure

• This, however, bodes well for domestic industry and

inflation

� Key Risks

• Eurozone crisis remains the single largest risk

• Further currency weakness can neutralize lower

commodity advantage

• Continued political paralysis may hinder capex

decisions of corporate India

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6

Portfolio Snapshot

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Sundaram Select Midcap –A diversified &

dynamic approach to the portfolio

Diversified 45 – 60

holdings

Visible Growth

Focus on valuations

Emphasis on Profit booking

Cash View on the market

Bottom up approach

Emphasis on portfolio

Liquidity

Broad Portfolio Strategy

Top 10 stocksWeight in

%

IPCA Labs 6.6

FAG Bearings 5.3

Bosch Limited 4.1

Amara Raja 3.7

Indraprastha Gas 3.6

Coromandel Fertilizers 3.3

Karur Vysya Bank 3.2

Bajaj FinServ 3.1

Bajaj Auto Finance 3.1

Madras Cements 3.0

Equity 98.1

Derivatives -

Fixed Income 0.2

Cash 1.7

Average AUM 2128

# of stocks 58

Stock Bets Portfolio

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IPCA Labs

FAG Bearings

Bosch

Federal Bank

Tata Chemicals

Glenmark Pharma

Overweight Underweight

Portfolio Analysis

Market Cap Profile

Weighted Average Market Cap

Rs. 6,574 crore

Median Market Cap

Rs. 3,632 crore

Source: Fact Sheet, Bloomberg

9

Financial Services

Metals

Services

Auto Ancillarie

s

Cement

IT

Overweight

Underweight

Sector Profile

Sector Bets Preferred Sectors

Source: Fact Sheet

10

Performance Snapshot

Fund Benchmark Excess

Since Launch 31.7 20.8 10.9

Last 7 Years 18 6.7 11.3

Last 5 Years 7.8 -2.3 10.1

Last 3 Years 10.7 1.5 9.2

Last 2 Years 0.3 -9.6 9.9

Last 1 Years 16.7 7.8 8.9

11

Value of Rs 1000-a-month SIPPerformance

Consistent outperformance in the long run

Data Source: Bloomberg Analysis: In house ; As of September 2012

Past performance may or may not be sustained in the future

12

Calendar Year Returns

Worth of Rs 10,000 invested at launch

Select Midcap : 1,64,927

BSE Midcap : 68,217

S&P CNX Nifty: 59,369

Consistent outperformance in the long run

Data Source: Bloomberg Analysis: In house ; As of September 2012

Past performance may or may not be sustained in the future

13Data Source: Bloomberg Analysis: In house ; As of October 2012

Parameter Fund Benchmark

Average Annual Mean 32.31 24.40

Standard Deviation 31.74 33.44

Beta 0.91 1.00

Sharpe Ratio 0.76 0.49

Sortino Ratio 1.25 0.69

Treynor Ratio 26.72 16.31

Benchmark: BSE Midcap Index

Risk-Return Metrics are based on month end NAVs since launch and have been annualised

The risk free rate considered for analysis is 8.0907% per annum (10 year T-Bill)

Parameter Fund

Alpha 9.44

Correlation 0.95

Tracking Error 9.94

Information Ratio 0.80

Turnover 45%

Risk-Return Metrics

Past performance may or may not be sustained in the future

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� Outpacing average of Mid-

cap funds; large-cap funds

& all equity funds and broad

markets on a long-term

basis

� A mid-cap fund should be

considered for every

intelligent equity portfolio

to boost the overall returns

Past performance may or may not be sustained in the future

Value as on September 28, 2012; Data Source: Bloomberg; Analysis: In House

Ahead of the Peers

Fund / Indices One Two Three Five Six Seven Ten

Year Years Years Years Years Years Years

Select Mid Cap 16.69 0.27 10.67 7.78 12.15 18.04 32.49

Average

Mid Cap Funds 15.12 -1.88 10.18 4.1 8.08 10.64 29.81

All Equity Funds 13.63 -2.26 6.16 3.72 8.77 11.91 23.52

Large-Cap Funds 13.81 -2.62 5.59 4.4 9.75 13.4 23.9

BSE Mid Cap 7.79 -9.61 1.47 -2.3 4.24 6.7 -

BSE Sensex 14.03 -3.31 3.09 1.65 7.07 11.73 20.15

S&P CNX Nifty 15.38 -2.75 3.91 2.58 8.02 11.87 19.46

CNX Midcap 10.52 -7.51 5.32 2.68 8.93 10.87 -

S&P CNX 500 13.22 -4.37 3.03 1.46 7.08 10.26 20.61

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Fund Facts

16

Allotment Date July2002

NAV (October 31, 2012) Growth: Rs 163.1654 Dividend: Rs 18.4597

Objective Seek capital appreciation by investing in diversified stocks that are

generally termed as mid-caps

Asset allocation Equity and Equity related Instruments (including derivatives):: 75-100%

Cash , Cash Equivalents Money market instruments:: up to 25%

Exposure in derivative :: up to 50%

Investment in overseas securities :: up to 35%

Plans Regular

Options Growth, Dividend (Pay Out, Reinvestment & Sweep); Default Option:

Growth; Default Sub-Option: Dividend Sweep

Load Structure Terms Of Offer: NAV; Exit Load: Redeemed within 12 months: 1 % ;

Redeemed after 12 months: NIL

Minimum Subscription

Amount

First Investment: Rs 5000 Subsequent Purchase: Rs 500

SIP: Rs 1000 per week Rs 250 per month Rs 750 per quarter

Weekly SIP will be processed on Wednesdays

Data Source: Fact Sheet

Fund Facts

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Returns are on a compounded annual basis for period more than one year & absolute for one-year

period based on NAV of Regular Plan (Growth Option) and is as of September 30, 2012. Value of

10,000 invested at inception is as on September 30, 2012. Relevant benchmarks are highlighted in

italics.

Growth Fund Annualised returns (%)

Fund BSE 200 S &P CNX Nifty Excess

Since Inception 31.7 20.8 19.1 10.9

30/09/2011 - 30/09/2012 (%) 16.7 7.8 15.4 8.9

30/09/2010 - 30/09/2011 (%) -13.8 -24.2 -18.0 10.3

30/09/2009 - 30/09/2010 (%) 34.8 27.8 18.6 7.0

Last 3 Years 10.7 1.5 3.9 9.2

Last 5 Years 7.8 -2.3 2.6 10.1

Last 8 Years 24.7 13.7 15.9 11.0

Past performance may or may not be sustained in the future

Sundaram Select Midcap - Performance

19

DisclaimerMutual Fund Investments are subject to market risks, read all scheme related documents carefully. Copy of the SAI, SID, key information memorandum and application form may also be obtained from

the offices / investor service centres of Sundaram Asset Management, its distributors and at www.sundarammutual.com

Benchmark: BSE Mid-Cap Index Minimum Investment Amount: Rs 5,000. Entry load: There is no entry load. Exit Load: 1% if redeemed within 12 months from date of allotment for Regular Plan &

Institutional Plan. There is no exit load for bonus units and dividend re-investment. NAV publication/sale/redemption is available on business days. Dividend Declared (Record Date; % declared; Rs. per

unit; NAV as on record date) : 27-06-03; 25.0; 2.5; 13.0 :: 21-11-03; 40.0; 4.0; 17.3 :: 27-02-04; 35.0; 3.5; 14.4 :: 17-09-04; 20.0; 2.0; 13.2 :: 18-02-05; 20.0; 2.0; 15.0 :: 23-09-05; 20.0; 2.0; 17.3 :: 17-02-06;

25.0; 2.5; 20.1 :: 18-08-06; 20.0; 2.0; 21.0 :: 27-10-06; 40.0; 4.0; 21.0 :: 09-02-07; 25.0; 2.5; 18.8.:: 24-04-09 10.0 1.0 11.5 :: 15-02-10 15.0 1.5 17.5 Dividend is declared on the face value of Rs 10 per unit.

After declaration and payment of dividend (including re-investment), the ex-dividend NAV will decline to the extent of the dividend payment.

Comparison with mid-cap funds: The returns for the mid-cap funds is based on the average of returns of a sub-category created by Sundaram Asset Management from the broad category of funds

classified as equity diversified by Value Research. This sub-category includes funds that consistently invest in mid-cap stocks. The funds have been chosen in good faith based on the allocation to the 51st

stock and above by market cap in descending order and the consistency in largely maintaining such a profile. The number of schemes covered for different periods is given in the accompanying table.

Number of 1 2 3 5 6 7

schemes Year Years Years Years Years Years

Mid-cap funds 20 20 20 17 14 13

All-equity funds 351 349 334 242 202 168

Large-cap funds 19 19 18 16 16 12

The classification does not reflect the effect of objectives, style, asset allocation, entry load, exit load and fees & expenses except the degree of exposure to large-cap stocks. This presentation of returns is

not intended for ranking purposes and does not also constitute ranking. This is only meant for comparison purposes. Comparison with all equity funds: The returns for all equity diversified funds

comprise all funds classified in Equity Diversified and Tax-Planning categories by Value Research. The funds in the two categories have been considered together and there has been no separate sub-

classification by Sundaram Asset Management. Scheme-Specific Risk Factors: Lack of liquidity at times and volatility. Change in Government policy in general and changes in tax benefits applicable to

mutual funds may impact the returns to Investors. Tax-free status for long-term capital gains and dividend will depend on the fund investing at least 65% in equity to qualify in accordance with provisions

of the Income-Tax Act. If and to the extent, the portfolio includes overseas stocks, investors will be exposed to country risk, currency risk, geo-political risk, legal restrictions and regulation changes in

geography other than India. General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be

achieved. NAV of the scheme may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times,

liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the

future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram Select Mid Cap is only the name of the scheme and does not in any manner indicate

either quality or future prospects and returns.

General Disclaimer: This document is issued by Sundaram Asset Management; an investment manager registered with the Securities and Exchange Board of India in India and is produced for information

purposes only. It is not a prospectus, scheme information document, offer document, offer and solicitation, to name a few, to buy any securities or other investment. Information and opinion contained

in this document are published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject

to change without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be

relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have been obtained from

sources that Sundaram Asset Management believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied

upon as such. Sundaram Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This communication is for private

circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use or reproduction of this communication in its entirety or any part thereof is

unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations. This communication is for general information only without regard to specific

objectives, financial situations and needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. Sundaram Asset Management

in the discharge of its functions, may use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. Copies of the Statement of Additional

Information, Scheme Information Document and application form with key information memorandum may be obtained from the offices of Sundaram Mutual offices and its authorized distributors or

downloaded from www.sundarammutual.com For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer scheme information documents available

online and at branches/Investor Service Centres, Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, 1882. Liability for sponsors is limited to Rs 1 lakh. Sponsor: Sundaram

Finance Ltd. Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd.