Sundaram BNP Paribas SMILE Fund

Mid Cap Fund March 2010

Fund Objective
The investment objective of the scheme is to primarily achieve capital appreciation by investing in diversified stocks that are generally termed as 'small and mid caps' and by investing in other equities.

Analysis
Launc hed in Feb 2005, the fund has a commendable track record to show for itself. While it has given since inception returns of 24.4%, its benchmark, the CNX Midcap has given 20.3% in the same time period (as on 31/03/10). It is a flexicap fund with mid & small-cap bias. With approximately 25.9% and 38.3% in its top 3 and top 5 sectors respectively and approx. 17.3% and 29.8% in its top 5 and top 10 holdings respectively, the fund is well diversified. It has around 27 sectors and approx. 60 stocks in its portfolio on last count. Being a late runner in the mid-cap fund category, it has proven its presence in the category with a top quartile performance since inception more often than not. It has been positioned as a more aggressive fund compared to 'Select Midcap Fund' with more exposure to small cap stocks. The fund has a large-cap c omponent that cushions the higher risks of investing in mid- and small-cap stocks, which can go through protracted periods of investor apathy and poor liquidity. During such periods, the portfolio manager has the leeway to enhance allocation to large-cap stocks. On statistical parameters also, it has shown out performance in the mid-cap funds category. The fund's ranking finds a place in the top 2 schemes on most parameters (e.g. Avg. Returns, Sharpe ratio, Semi-Sharpe ratio, Jenson ratio, Information ratio) in a peer group of 22 schemes. It slips a bit though when we look at its ranking on the Standard Deviation (no.19) and the Semi-Std. Deviation (no.10) front. Investors, who would like an exposure to midcap stocks, have a minimum 3-5 years' investment horizon and who aren't unnerv ed by s toc k market gyrations can consider adding Sundaram BNP Paribas SMILE Fund to their portfolios. An important aspect to be borne in mind by investors here is that while midcaps and smallcaps have a tendency to underperform largecap stocks in the short to medium term, they have a penchant to outclass these same stocks over a longer time horiz on. Patience would be of virtue while investing in the midcap/smallcap space!

Portfolio Manager
Mr. S. Krishnakumar (B.E [REC, Trichy]; MBA [LIBA, Chennai]) is the fund manager. He has a total experience of around 18 years of which the last 11 years are in equity markets. Before joining the fund house, he was Vice President (Research) at Anush Shares & Securities. Besides this s cheme, he also manages Sundaram BNP Paribas Energy Opportunities Fund.

Investment Information
Launch Date Plans Min. SIP Investment (Rs.) AUM as on 31st Mar 10 ( Rs. Cr.) Expense Ratio as on 30th Sep 09 (%) Benchmark NAV(31st Mar 10) (Rs.) NAV ( 52 week Low) (1st Apr 09) (Rs.) Entry load Exit load Min./Additional Investment (Rs.) Jan-05 Growth and Dividend 5000/1000 250 609.66 2.37 30.94 13.60 Nil 1%

Asset Allocation
4.87 3.01

Market Capitalization (%)

Large caps (%)

0.1 7.88 0 1 0.48

32.80

M id caps (%) Small caps (%) Other (%)

CNX MID CAP

NAV ( 52 week High) (11th Jan 10) (Rs.) 33.42

92.12 Equity Debt Cash & Equivalent

48.74

Debt & Cash (%)

Fund Style (March 2010)

Large Cap Mid Cap Small Cap Growth Blend Value

SBNPPSF v/s Benchmark

40 35 30 25 20 15 10 5 0
Feb-05 May-05 Aug-05 Nov-05 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10

Half Year Performance Absolute (%)

125 100 75 50 25 0 -25 -50 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 05 06 06 07 07 08 08 09 09 10

Sundaram BNPP SMILE Fund - G CNX Midcap

Sundaram BNPPSMILE Fund - G CNX Midcap

Trailing Return (%)

Return 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 5.53 -2.79 5.51 131.93 21.89 25.15 BSE Midcap 7.50 3.66 14.77 126.12 16.65 21.35

Top 5 Sector Allocations

Sector Pharmaceuticals & Biotechnology Auto & Auto Ancillaries Banks Software and Consultancy Services Steel and Ferrous Metal Total Sectors Assets (%) 9.58 8.34 7.99 6.5 5.88 26

Top 5 Holdings
Company

Assets (%) 4.13 3.76 3.47 3.20 2.75 60

TVS Motor Company Polaris Software Lab Ltd. Sesa Goa Ltd Ashok Leyland Ltd. Reliance Industries Ltd Total Stocks

SIP of Rs. 5000 per month (as on 31/03/2010)

Period 5 Years Total No. of units accumulated 16823.5 Total Amount Invested 300000.0 Present Value 520598.4 Yield 22.2 Profit SIP 220598.4

Risk Analysis
Std. Dev. R-Squared 13.34 0.96 Beta Jenson Information Ratio 0.93 0.99 0.35

Sharpe Ratio 0.15

SBICAP Securities Limited