Mutual Fund- Product Note

Peerless Short Term Fund

(An open ended Debt Scheme)

Investment Objective:
Peerless Short Term fund is an open ended debt scheme which seeks to generate income and capital appreciation by investing in a diversified portfolio of debt and money market securities.

About Fund:
Peerless Short Term fund is 5 Star Rated by Valueresearch which indicates the fund is in the top 10 percent of its category in terms of Historical Risk-adjusted returns. The fund has been classified as BEST FUND IN ULTRA SHORT TERM FUND CATEGORY by Business World-India's Best Mutual Fund: (30th April, 2012 issue) Peerless Short Term fund portfolio construction is typically with following features: Liquid plus returns over the medium term Average Maturity of between 60-180 days Portfolio yield better than 3 month- CD rates 3 Months 6 Months 1 Year Since Inception

Scheme Performance (as on 06-Jun)

Period Returns 10.73 10.47 10.85 11.22 B'mark 2.14 4.38 9.03 7.44 Rank 27/(117) 24/(112) 15/(110) NA

Present Average Maturity of 109 days (as on April 30th, 2012) provides opportunity to take advantage of changing interest rate scenario and subsequently raise the average maturity to over 180 days and depending on the macro/economic environment available opportunities.

Best Return in Period

Period Month Quarter Year Month Quarter Year 21-01-11 to 23-02-11 21-10-10 to 21-01-11 21-01-11 to 23-01-12 24-12-10 to 24-01-11 21-10-10 to 21-01-11 25-01-11 to 25-01-12 Fund(%) 3.74 5.22 13.24 0.52 1.68 9.86 B'mark(%) 0.58 1.93 8.41 0.31 1.04 8.35

Investor Suitability:
This Fund Suits an investor looking to park money for short term. Given an average Maturity of 109 Days and a YTM of 9.7%, this fund can be looked at as a an alternative to a Fixed deposit for 6 Months to 1 year Period.

Worst Return in Period

Scheme Details
0.48% 5.68%

Portfolio- Rating Wise

Highest Safety High Safety

Scheme Type Options Asset Allocation Benchmark Average Maturity as on th 30 April YTM as on 30 April Modified Duration
th

Open Ended Debt Fund Growth & Dividend Payout & Reinvestment Money Market Instruments: 25% to 100% Debt & Related Instruments: 0% to 75% CRISIL Short Term Bond Fund Index 109 Days 9.70% 94.9 Days Entry Load- Nil Exit Load- 0.5% if exited before 6 Months Rs. 5000 in multiples of Re.1 thereafter Ganti N. Murthy

93.84% Cash 0.48% 5.68%

Portfolio- Asset
CD CP Corporate Debt Others

Load Structure Minimum Investment Fund Manager

37.55%

56.29%

Disclaimer
The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document.