1. Nifty BeES

2. Only Mutual Fund in India with exclusive focus on quantitative and passive investment management Monitored by Securities and Exchange Board of India (SEBI) Managed proactively by the Trustees, separate from the Asset management firm Trustees meet compulsorily once in 2 months and report to SEBI every quarter The Compliance Officer reports independently and directly to the Trustees bi-monthly Benchmark Benchmark is also regulated by the National Stock Exchange of India rules and bye laws The securities and other assets of the Fund are held by ABN AMRO About Benchmark

3. First Exchange Traded Fund (ETF) in India Combination of a share and a mutual fund unit Real-time Trading on NSE Real-time Indicative NAV on www.benchmarkfunds.com Available across 4000 NSE terminals in 400 cities Tracks the S&P CNX Nifty Index Priced at 1/10 th of the Nifty Index Investment management fees is 0.35% and the total expense ratio is 0.80% per annum, the lowest in India Structured as a Mutual Fund under the SEBI 1996 regulations Introduction to Nifty BeES

4. First ETF came in 1993 on S&P500 called SPDRs SPDRs and QQQs (ETF on Nasdaq 100) are the most actively traded ETFs Globally, there are currently 348 ETFs managed by 43 managers across 31 exchanges. On February 28, 2005 the ETF market globally was $313.60 billion (Source: MSDW) ETFs launched across the world include Japan in September 2001 and in Korea and Singapore in 2002 Nearly 60% of trading volumes on American Stock Exchange comprises of ETFs History of ETFs

5. S&P CNX Nifty Index India’s premier benchmark index introduced in November 1995 and was developed as a basis for introducing index based derivatives Only companies having a high degree of liquidity defined in terms impact cost are included as constituents of the Index Nifty is calculated using the market capitalisation weighted method Impact cost of the S&P CNX Nifty is 0.10% for a portfolio size of Rs.5 million Represents about 66% of total market capitalisation Correlation with Morgan Stanley Capital International (MSCI) India Index is about 97% over last 3 years Attracts most of the Futures of over $ 1 bn daily. The underlying trades over $ 1.2 bn daily.

6. ETFs Growth - Global Source: Bloomberg, Morgan Stanley Research

7. How Nifty BeES work Secondary market Seller Buyer NSE Nifty BeES Cash Nifty BeES Cash Primary market Buy / sell Market making / Arbitrage Fund Authorised Participants / Financial Institutions Creation in-kind Redemption in-kind

8. ETF Liquidity Futures Underlying Equity (Creation / Redemption Process) Intra-dayBuy/Sell ETFLiquidity The notional liquidity of an ETF is the average volume of the underlying.

9. Nifty BeES Advantages Simple – Can be bought/ sold on NSE like a share…real-time Economical – No load scheme. Annual expense one of the lowest for any mutual fund scheme in India. Diversification – It’s a cost efficient way to invest in a basket of securities Equitable Structure – Long term investors insulated from short term trading activity Transparent – Investors have access to information on the portfolio constituents represented represented on a daily basis Premium/Discount to NAV – Between +&-0.5% (Source: Business Standard)

10. NSE SYMBOL : NIFTYBEES ISIN: INF732E01011 Reuters – NBES.NS Bloomberg – NBEES.IN Moneyline Telerate – IN;NBFN TOTAL EXPENSE RATIO: 0.80% (upto Rs.1000 mn) 0.70% (next Rs.4000 mn) 0.65% (over Rs.5000 mn) ENTRY/ EXIT LOAD:NIL Nifty BeES Details

11. Tracking Error Source: www.mutualfundsindia.com Annualized Six-month Tracking Error (TE) calculated as on July 08, 2004

12. Nifty BeES vs. Open ended Index funds AttributeNifty BeESTraditional Open Ended Index Funds Traded throughout the dayYesNo Low Expense RatioYesNo Trade at any brokerage firmYesNo Hedging ToolYesNo Ability to lend unitsYesNo TrackingBestAverage NAVIndicative Real timeDaily LiquidityFund / Stock marketFund StructureInsulates long term investor from short term trading activity Does not insulate long term investors from short term investor activity

13. “Nifty BeES seems the best index fund when it comes to all three parameters; Entry loads, Expense ratios and Tracking Error.It is India’s first and only Exchange Traded Fund or simply put, a next generation index fund.” - Business World, September 30, 2002 “Investing in Nifty BeES is a comparatively better method of participating in any market rally” - The Economic Times, December 2, 2002 Independent Research Review

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