CRISIL-AMFI Mutual Fund Performance Insights

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10-Mar-08 17574.15074

6.55% 15923.72 4.29% 4800.4 4.36% 3927.9 3

11-Mar-08 17997.80863

5.94% 16123.15 3.95% 4865.9 3.98% 4024.4 2

12-Mar-08 17905.79871

5.80% 16127.98 3.72% 4872

3.73% 4010.15 2

13-Mar-08 17014.35037

7.06% 15357.35 4.97% 4623.6 5.03% 3785.1 4

14-Mar-08 17248.91958

6.63% 15760.52 4.27% 4745.8 4.35% 3868.65 3

7276.11754-3M5 ar-1008-M1ar6-02821.3137957741.15074 6.55%7.84% 159231.472809.449.29%5.43% 4800.44503.1 4.36%5.32% 3927.39642.353.48%4

7238.11844-2M98ar-1018-M1ar6-01859.4177299573.80863 5.94%7.61% 161231.415833.436.95%5.08% 4865.49533 3.98%4.86% 4024.34642.8 2.87%4

7157.11929-0M31ar-1028-M1ar6-018 63.9117390355.79871 7220.27039-2M84ar-1038-M1ar6-018 63.9117301345.35037 7177.27134-0M7 ar-1048-M1ar6-01863.9117324385.91958 7137.28450-8M32ar-1078-M1ar6-008 88.8126622318.33971 7025.27571-9M08ar-1088-M1ar6-09862.3156915296.47253 6940.22729-7M77ar-1098-M1ar6-098 70.5196316632.91335 6889.34119-6M25ar-2008-M1ar7-00830.2186016735.91335 6875.13-7A07p35r-0821-M1ar6-098 11.2186516834.91335

5.80%7.29% 161271.498994.833.72%4.72% 48724573.953.73%4.48% 4010.3165 57.8 2.72%3

C R I S I L- A M F I 7.06%7.16% 153571.435994.843.97%4.62% 4623.46573.955.03%4.35% 3785.31657.8 4.09%3

6.63%7.09% 157601.452994.843.27%4.56% 4745.48573.954.35%4.32% 3868.3665 57.8 3.52%3

M u t u a l F u n d 7.84%7.12% 148091.549289.45.43%4.09% 4503.41609.855.32%4.09% 3642.3365 56.454.65%3

7.61%6.01% 148331.646217.459.08%2.89% 45334877.5 4.86%2.95% 3642.38879.754.32%2

Pe r f o r m a n c e 7.29%6.22% 149941.683015.546.72%3.30% 4573.4985 30.254.48%3.30% 3657.38862.253.98%2

7.16%6.27% 149941.583644.444.62%3.81% 4573.4975 34.5 4.35%3.80% 3657.38825.853.83%3

I n s i g h t s 7.09%6.65% 149941.583626.642.56%4.03% 4573.4975 39.554.32%3.93% 3657.38817.453.79%3

6853.22-0A47p08r-0824-M1ar6-09876.3156408084.82638 7.12%6.34% 152891.54 750.44.09%3.61% 4609.4875 54.2 4.09%3.60% 3656.3485 35.5 3.73%3

086859.19616992557.92054-M4a4r-08 169626..305962%6 6.01%15832.51562173..419 7% 2.89%4771.6 4877.35.16% 2.95%3840.3 3879.27.566% 2.52%

276.15435

10-Mar-08

17574.15074

6.55% 15923.724.29% 4800.

6928.42-1A01p71r-0827-M1ar6-05858.6176797804.59362 6.22%6.51% 160151.556343.132.30%3.76% 4830.4265 47 3.30%3.63% 3862.3275 47.952.82%3

238.144298

11-Mar-08

17997.80863

5.94% 16123.153.95% 4865.

6970.77-4A70p89r-0831-M1ar6-08856.5197203904.28075 6.27%6.10% 156441.544757.038.81%3.19% 4734.45761.2 3.80%3.09% 3825.3885 30.5 3.14%2

157.129031

12-Mar-08

17905.79871

5.80% 16127.983.72% 4872

7038.81-8A17p61r-081-Apr1-068788.515629121.28584 6.65%6.00% 156261.562587.642.03%3.18% 4739.4575 09.653.93%3.13% 3817.3485 07.1 3.38%2

220.739284

13-Mar-08

17014.35037

7.06% 15357.354.97% 4623.

6957.96-3A47p91r-082-Apr1-068974.5146697967.35404 6.34%5.94% 157501.54 790.531.61%3.12% 4754.42747.053.60%3.21% 3835.35844.4 3.05%2

177.73407

14-Mar-08

17248.91958

6.63% 15760.524.27% 4745.

6835.10019-2Apr-03-8Apr1-068943.3146092079.90444 6.06%6.10% 158321.555695.13.17%3.39% 4771.46733 3.16%3.40% 3840.33830.752.66%2

137.850832

17-Mar-08

16221.33971

7.84% 14809.495.43% 4503.

6816.12187-3A47pr-04-8Apr1-078083.1116955283.67784 6.51%5.74% 153431.512807.634.76%2.91% 46474777.8 3.63%2.96% 3747.3985 61.7 3.10%2

025.771908

18-Mar-08

16159.47253

7.61% 14833.465.08% 4533

6807.17401-9A14pr-07-8Apr1-078083.1116985263.59294 6.10%5.85% 157571.508807.634.19%3.04% 4761.42777.8 3.09%3.11% 3830.35861.7 2.63%2

940.229777

19-Mar-08

16163.91335

7.29% 14994.834.72% 4573.

6748.17574-6A25pr-08-8Apr1-078317.4126178082.5522 6.00%5.86% 155871.662153.636.18%3.02% 4709.4685 79.653.13%3.12% 3807.31938 2.58%2

889.419625

20-Mar-08

16163.91335

7.16% 14994.834.62% 4573.

6815.19675-1A49pr-09-8Apr1-078430.5126697149.54697 5.94%5.77% 157901.651244.139.12%2.89% 4747.4085 87.3 3.21%3.08% 3844.34959.752.58%2

875.370735

21-Mar-08

16163.91335

7.09% 14994.834.56% 4573.

6849.16792-4A85pr-0108-Ap1r7-068 64.5116394537.34009 6.10%5.74% 156951.61 481.23.39%2.90% 47334958.4 3.40%3.12% 3830.4705 27.9 2.75%2

853.204708

24-Mar-08

16088.82638

7.12% 15289.4 4.09% 4609.

6794.25111-5A67pr-0118-Ap1r7-098 84.3117808136.11923 5.74%5.55% 158071.664739.323.91%2.75% 4777.58037 2.96%2.98% 3861.47099.752.42%2

859.916955

25-Mar-08

16962.35926

6.01% 16217.492.89% 4877.

6830.29260-6A32pr-0148-Ap1r8-008 92.4187208335.11923 5.85%5.39% 158071.664783.837.04%2.70% 4777.58049.3 3.11%2.94% 3861.47120.852.53%2

928.210171

27-Mar-08

16970.59362

6.22% 16015.563.30% 4830.

6958.21403-0A88pr-0158-Ap1r7-098 63.4107731573.42102 5.86%5.73% 161531.666721.038.02%3.02% 4879.4695 99.853.12%3.42% 39384083.6 2.51%2

89

31-Mar-08

17030.28075

6.27% 15644.443.81% 4734.5 3.80%

-069864.17837220865.51560-A1pr9-08

174305..532631%9 5.77%17125.91862442..149 0% 2.89%5111.7 4887.23.81% 3.08%4162.553959.17.598% 2.42%

61

1-Apr-08 16911.28584

6.65% 15626.624.03% 4739.55 3.93% 3817.

7066.22879-5A42pr-0178-Ap1r8-018 93.4187166945.51357 5.74%5.47% 164811.72 015.926.90%2.64% 4958.54089.653.12%3.01% 4027.49156.9 2.36%2

91

2-Apr-08 16976.35404

6.34% 15750.4 3.61% 4754.2 3.60% 3835.

7140.25982-5A61pr-0218-Ap1r8-048 24.710729874.31816 5.55%5.28% 167391.733378.426.75%2.33% 50375195.5 2.98%2.68% 4099.4725 33.252.22%1

3-Apr-08 16927.90444

6.06% 15832.553.17% 4771.6 3.16% 3840.

7137.460585 22-Apr-08

18092.48235 5.39%

47

4-Apr-08 16558.67784

16783.87

2.70%

5049.3

2.94%

6.51% 15343.123.76% 4647

4120.85

2.10%

3.63% 3747.

7218.475852 24-Apr-08

17963.40753 5.73%

14

7-Apr-08 16856.59294

16721.08

3.02%

4999.85

3.42%

4083.6

2.52%

6.10% 15757.083.19% 4761.2 3.09% 3830.

Long Term

Growth

Table of contents

Section 1 Mutual Funds ? An Overview

3

1. Mutual Funds ? An effective investment

4

vehicle for retail investors

Section 2 CRISIL-AMFI MF Performance Indices

9

2. CRISIL-AMFI MF Performance Indices

10

? An introduction

Section 3 Key Insights

13

3. Equity Funds ? Sustainable risk-adjusted

14

long-term returns

4. Balanced Funds ? A strong and simple

20

asset allocation option

5. Monthly Income Plans ? An alternative

24

to long-term fixed deposits

6. Long-term Debt Funds ? An ideal avenue to

28

invest during a declining interest rate scenario

7. Short-term Debt Funds ? A suitable alternative

32

to short-term fixed deposits

8. Money Market Funds ? A better option

36

to savings bank deposits

Annexure: Mutual fund category definitions

40

Foreword

India is a savings dominated market but people invest largely in guaranteed return products such as bank fixed deposits. Reserve Bank of India data shows that Indians have parked almost 50% of their savings in bank deposits, while less than 5% of assets have gone into market-linked investment avenues such as mutual funds. Despite improvement in best practices and transparency, most investors are unaware about the benefits of investing through mutual funds. Today, investors across gender, age and risk appetite can buy mutual funds to meet any of their lifetime goals. For instance, equity and debt funds can be used for planning long-term goals based on risk appetite of investors. Likewise, liquid funds are ideal for managing surplus cash flows while gold funds offer the benefits of diversification. Awareness about these benefits is, however, limited.

A key reason for low awareness is lack of common metrics for assessing the value created by investing in mutual funds vis-a-vis other investment avenues. To address this gap, CRISIL Ltd. (CRISIL) and the Association of Mutual Funds in India (AMFI) have jointly launched a family of mutual fund performance indices across various categories. These indices, the first of their kind in the country, represent the performance of various mutual fund categories and enable comparison of these categories with appropriate benchmarks across time frames and market cycles.

The indices, based on time series data since 1997, have been developed and will be maintained by CRISIL. The indices cover five broad mutual fund categories ? equity funds, equity linked savings schemes (ELSS), debt funds, money market funds and hybrid funds. Various sub-categories of these indices have also been launched.

In commemoration of this launch, CRISIL-AMFI have released a compendium of seven articles in this booklet which highlights the performance of various mutual fund categories represented by these indices. The articles highlight the performance trends across bull and bear market phases, besides comparing category returns with their respective benchmarks and traditional savings instruments. For example,

? The CRISIL-AMFI Equity Fund Performance Index has given an annualised return of 22% since April 1, 1997, as compared to annualised returns of 12% and 13% by the benchmarks CNX NIFTY and CNX 500, respectively during the same period.

? The CRISIL-AMFI Equity Fund Performance Index has never given a negative return for any five-year period on a daily rolling basis since April 1, 1997.

? The CRISIL-AMFI Money Market Fund Performance Index has consistently outperformed the savings bank rate in the range of 110 to 550 basis points.

? The CRISIL-AMFI Debt Fund Performance Index outperformed fixed deposits (FD) by a significant margin during declining interest rate cycles.

As these indices reflect the performance of mutual funds at an aggregate level, an investor who would have invested in top performing mutual funds would have generated even higher returns.

As the industry matures and mutual funds become the prime instruments for long and short-term savings, it will become increasingly important to provide the right kind of support to retail investors to make informed investment decisions. CRISIL-AMFI performance indices are clearly a step in this direction where investors can use them as standard performance metrics to understand the benefits of mutual fund investing. This is also in line with CRISIL's objective of making markets function better and improving connect with retail investors.

The CRISIL-AMFI MF performance indices will be updated on a quarterly basis and will be available on and .

We hope you find this compendium informative.

H.N. Sinor Chief Executive Officer Association of Mutual Funds in India

Roopa Kudva Managing Director and Chief Executive Officer CRISIL Limited

2

Mutual Funds ? An Overview

3

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