Average assets under management for September 2006: · PDF fileAverage assets under management...

Average assets under management for September 2006: Rs. 26,352.29 CroreAssets under management as at September 30 2006: Rs. 25,638.56 Crore

September 2006

Vol. No. 4 Issue No. 3

Mind of the Investor

Market Review

2 September 2006 Intouchmutually

Equity markets appreciated significantly in thelast quarter. The Sensex and Nifty endedSeptember 2006 at 12454 and 3588 respective-

ly, appreciating by 17.4% and 14.7% over the previousquarter. The quarter also witnessed the CNX MidCapIndex appreciating by 18.94% over the quarter.

Certain factors, which contributed to the appreci-ation of the markets, were

● Falling oil prices ● Falling interest ratesOil prices fell during the quarter by about $13-14

/ barrel. Indian and US bond markets rallied duringthe quarter. The FOMC kept its target for the federalfunds rate unchanged, at 5-1/4 percent.

The comparative returns of select domestic andglobal indices as on Sept 29, 2006 is summarisedbelow:

The rupee was stable during the quarter atRs.45.92 per dollar. Net FII flows during the quarterand month of September were positive at $2.42 bil-lion (Rs. 11,213 crores) and $1.17 billion (Rs. 5,425crores) respectively.

Mutual Funds were net buyers for Rs. 1563 crores

(~ $0.34 billion) during the quarter and also net buy-ers for Rs. 1219 (~ $0.26 billion) crores duringSeptember.

The Sensex is currently trading at around 17.7times estimated 1-year forward earnings. This indi-cates a moderate outlook for markets over the medi-um to long term. There is thus a need to invest with aminimum view of two years and be tolerant to volatil-ity. India’s GDP in the first quarter of FY07 showedstrong growth of 8.9%. GDP growth is expected to bestrong going forward. Rising capex is one of the keyfactors improving the growth rates of GDP.

Equity market update

1 month 3 months 1 yearIndex (%) (%) (%)

BBSSEE SSeennsseexx 66..2233 1177..3399 4433..9988CCNNXX NNiiffttyy 44..6611 1144..7711 3377..4422CCNNXX MMiiddccaapp 77..9977 1188..9944 2233..0033

DDJJIIAA 22..66 44..7744 1100..55NNAASSDDAAQQ 33..44 33..9977 44..9966FFTTSSEE 00..99 22..1188 88..88

(as on 29th September, 2006)

The quarter ended September 2006 witnessed afall in yields. A combination of factors resultedin a fall in market yields. These include a pause

by Federal Reserve, fall in domestic inflation and fallin oil prices.

The yield on the benchmark 10-year GovernmentSecurity decreased 0.25% over the month and 0.50%over the quarter. Yield on 364-day Treasury Bill moved

down by 0.18% over the quarterThe movements of yields, spreads and some other

key variables for the quarter ending September 30,2006 can be seen in the table below.

The stock of liquidity (MSS + T-Bills held by Stategovernment + idle cash held by centre) remains com-fortable, but the flow of liquidity (represented by netLAF) fell to Rs. 1915 crs as on 29th September 2006.

In the last quarter, the rupee appreciated by 0.3%against the USD. WPI inflation has shown a decreaseof nearly 0.9%.

Credit continues to grow at a rapid clip. The1QFY07 GDP growth was at 8.9%.

On the whole, domestic interest rates appear tohave an upward bias over the medium term. The Fundcontinues to position itself in instruments and maturitybuckets that provide higher relative value in an attemptto deliver superior risk adjusted returns.

Debt market update

29-Sep-06 31-Aug-06 30-Jun-06 31-Mar-06 MMoonntthhllyy QQuuaarrtteerrllyyPresent 1 month ago 3 months ago 6 months ago cchhaannggee cchhaannggee

10-year benchmark GoI yield 7.64 7.89 8.14 7.53 -0.25 -0.50364 day T-Bill auction yield 6.87 6.84 7.05 6.42 0.03 -0.181-10 year GoI yield spread 0.77 1.05 1.11 1.13 -0.28 -0.34AAA Corp. debt over GoI - 5 Y 0.95 0.98 0.75 0.94 -0.03 0.20WPI inflation 4.56 4.91 5.44 4.06 -0.35 -0.88Forex rate ( INR per USD) 45.92 46.53 46.08 44.62 0.61 0.16

Prevention of Money Laundering Act, 2002 (“PMLA”):PMLA came into effect from July 1, 2005 and SEBI has mandated that allintermediaries should formulate and implement a proper policy frameworkas per the guidelines on anti money laundering measures and also to adopta Know Your Customer (KYC) Policy. In view of this, investors would berequired to comply with the disclosure norms/other requirements specifiedfrom time to time for the purpose of adherence with the PMLA / SEBIGuidelines as may be required by HDFC Mutual Fund. An addendum datedAugust 31, 2006 to this effect has been published. Detailed communicationwill follow.

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SMS and email alertsWe have introduced a facility for our investors to receive transaction confir-mation via SMS or email alerts. To avail for this facility, please provide yourmobile number and / or email IDs to us.

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Systematic Investment Plan (SIP) using “auto debit facility”SIP a convenient and systematic way to 'invest while you earn' and providesyou an opportunity to invest regularly, thereby averaging the acquisitioncost of units. We also provide an easy and more convenient way to investthrough the SIP route by means of an "auto debit facility". Instead of sub-mitting multiple post-dated cheques, you now have to send us only onecheque, with the balance SIP installments paid through automatic debit toyour bank account. Indeed, investing systematically is easier and conven-ient to you.

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e-Transaction SlipThere is added convenience for those who have opted to receive accountstatements by e-mail in lieu of physical documents. We have now intro-duced the preprinted e-Transaction Slip as an additional attachment (PDFformat) along with your account statement. Using your e-Transaction Slip,which has preprinted customer information, you simply need to download,print and use for transacting with us in future. You do not need to remem-ber your folio number, mode of holding and other details. This novel facili-ty is one more step towards making your investment experience with us apleasant one.

To reiterate, following are the advantages of receiving account statementsby e-mail in lieu of physical copies:

It is quicker than receiving it in the physical form.No need to store physical copies as it is convenient to store/ retrieveelectronicallyNo worries about loss in postal transitPhysical copy of annual account statement available on requestPreprinted e-Transaction Slip available for use in futureA booklet containing Transaction Slips is provided as a backup in casee-Transaction Slip is not readily available for use or for reasons such aswant of printer, malfunctioning of your PC, etc. It is offered free of cost to the Unit holders

Surely, these are enough reasons for you to consider receiving accountstatements by e-mail, in case you have still not opted for this facility. Pleasevisit www.hdfcfund.com to download the Registration Form.

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Investor facilitiesa) The Electronic Clearing Service (ECS) is available for payment of dividend,

if any. ECS is available in select cities of Ahmedabad, Bangalore,Bhubaneswar, Chandigarh, Chennai, Hyderabad, Jaipur, New Delhi,Kolkata, Mumbai, Nagpur and Thiruvananthapuram. In case you wishto subscribe for this facility, kindly send us a photocopy of a cancelledcheque pertaining to your bank account along with a duly signedrequest for the same.

b) Direct credit of redemption proceeds and dividend (if any) into yourbank account, in case your account is with ABN AMRO Bank NV,Centurion Bank of Punjab Ltd., Citibank N.A., Kotak Mahindra Bank Ltd.,Deutsche Bank AG, HDFC Bank, HSBC, ICICI Bank, IDBI Bank, StandardChartered Bank or UTI Bank.

c) Consolidation of Folios: In case you hold multiple folios with similar unitholding pattern and would like to hold them under a single folio, pleasesend a written request, duly signed by all Unit holders.

d) Log on to our website www.hdfcfund.com and subscribe to daily NetAsset Values by email.

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Unclaimed dividend / redemption cheques / direct credits:All investors are requested to ensure that all the dividend / redemption pay-ments receivable by them have been received and the cheques have beendeposited into their bank account. If any cheques are not yet deposited andhave turned stale, you may forward them to us for revalidation. For furtherinformation in this regard, please contact our Investor Service Centre clos-est to you.

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Permanent Account Number (PAN)SEBI has made it mandatory for applicants (in the case of application in jointnames, each of the applicants) to mention his/ her PAN if the application isfor Rs. 50,000 or more.Further, as per Notification no. 288 of 2004 dated December 1, 2004 issuedby the Central Board of Direct Taxes, every person shall quote his PAN in alldocuments where payment is of an amount of Rs. 50,000 or more to aMutual Fund for purchase* of its units. Where the applicant is a minor, is notliable to Income Tax, he shall quote the PAN of his father or mother orguardian, as the case may be. In order to verify that the PAN of the applicants (in the case of applicationin joint names, each of the applicants) has been duly and correctly quotedtherein, the applicants shall attach along with the purchase applicationform, a photocopy of the PAN card or a PAN letter or any intimation fromthe Income Tax Department quoting PAN. Any person who does not have a PAN and who enters into any purchase*transaction as aforesaid shall make a declaration in Form No. 60 or FormNo. 61 (in the case of persons who have agricultural income and are not inreceipt of any other income chargeable to tax) along with proof of addressgiving the particulars of such transaction. Such declaration in Form No. 60or Form No. 61, as applicable (in duplicate) should be attached along witheach purchase* request.

* include fresh/ additional purchase, switch, Systematic Investment /Transfer and Dividend Reinvestment.

Since dividend reinvestment of Rs. 50,000 or more qualifies as purchase ofunits for aforesaid Notification, PAN or Form no. 60 or Form no. 61 (as appli-cable) is required along with supporting in respect of each such reinvest-ment, failing which dividend reinvestment shall be automatically convertedinto payout option.Applications not complying with the above shall be rejected.

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Bank Account DetailsAs per directives issued by SEBI, all investors have to mention their bankaccount details on their application form. This is also necessary to safeguardinvestors' redemption/ dividend cheques from the possibility of being fraud-ulently encashed. Please ensure that our records have your correct bankdetails. The bank details can be checked from your Account Statement. Theapplication for purchase / redemption without bank details shall not beprocessed.

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Launch of new Transaction Points:To further extend our reach to our investors, we have launched newTransaction Points in the following cities : Kottayam : CAMS Transaction Point, Door No IX / 1276, Amboorans Building,Manorama Junction, Kottayam - 686 001, Tel : 0481 - 320 7011 / 320 6093Gwalior : CAMS Transaction Point, 1st Floor, Singhal Bhavan, Behind Royal Plaza, Daji Vitthal Ka Bada, Old High Court Road, Gwalior - 474 001,Tel : 0751 - 3202311 / 3202873, Fax : 0741 - 2427662Kolhapur : CAMA Transaction Point, AMD Sofex Office No. 7, 3rd Floor,Ayothdya Towers, Station Road, Kolhapur - 416 001, Tel : 0231 - 3209732,3209356, Fax : 0231 - 2650401

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Fund news

September 2006 3Intouchmutually

Intouchmutually

Behavioural finance is a fascinating sub-ject to study in relation to the markets. Asthey say, if you lose on the markets, it’s

not the markets that are losing, it is your behav-iour that makes you lose.

The ancient Greek saying, ‘Know thyself, ‘was the most important piece of education andadvice that was handed out to young men. For,knowing yourself means understanding howyou’re likely to behave under various circum-stances. And from there emerges preparedness.Because as behavioural finance theorists havetold us often enough, half the battle lies in know-ing your pitfalls. Once you know the traps you

are likely to fall into, you can avoid them orat least allay them. What are the lessons

from these in managing your finances?

Personality issues We react in different ways to risk-

averseness and decision-making understress. But we do not have the same pat-

tern for risk behaviour; we exhibit anom-alies or contrariness in our behaviour to

risk. Exactly what the 2002 Nobel Prizewinning economist Daniel Kahneman

researched. Daniel Kahneman andAmos Tversky called their studiesof how people manage risk anduncertainty, the Prospect Theory.Kahneman and Tversky’s theory,developed over a thirty year peri-

od, is however highly important in economicsand especially in financial economics.Kahneman won the Nobel for investigatingapparent anomalies and contradictions in humanbehaviour. Subjects when offered a choice for-mulated in one way might display risk-aversion,but when offered essentially the same choiceformulated in a different way, might displayrisk-seeking behaviour. For example, asKahneman says, people may drive across thetown to save $5 on a $15 calculator but not driveacross town to save $5 on a $125 coat. Tversky’swork demonstrates that people’s attitudestoward risks concerning gains may be quite dif-ferent from their attitudes toward risks concern-ing losses.

For example, when given a choice betweengetting $1000 with certainty or having a 50 percent chance of getting $2500, they may wellchoose the certain $1000 in preference to theuncertain chance of getting $2500. This is a typeof risk-aversion behaviour that cautious

investors display. But Kahneman and Tverskyfound that the same people when confrontedwith a certain loss of $1000 versus a 50 per centchance of no loss or a $2500 loss, do oftenchoose the risky alternative. This is classic risk-seeking behaviour. This is not necessarily irra-tional but it is important for us to recognise theasymmetry of human choices.

Another experiment by Richard Thaler alsothrows light on this behaviour. The experimentin which students were told to assume they hadjust won $30 were offered a coin-flip uponwhich they would win or lose $9. Seventy per-cent of the students opted for the coin-flip.When other students were offered $30 for cer-tainty versus a coin-flip in which they got either$21 or $39, a much smaller proportion, 43 percent, opted for the coin-flip. Isn’t it clear whereyou stand vis-à-vis risk towards loss or gain?

Some of the problems of interpreting humanbehaviour in the face of risk has to do with theproblem of people making decisions on the basisof subjective assessments of probabilities whichmay be quite different from objective or trueprobabilities.

Events of small probability that have neveroccurred before may be assessed as having aprobability of zero in decision-making, but thisleads to tragedies in which people find they havebeen playing Russian roulette without evenknowing they are doing so. In fact, life is some-times like Russian roulette on a large scale andthe markets are only a small sector with greatlosses and opportunities.

Kahneman realised that small probabilitiesadd up when chances are taken repeatedly. Anotable phenomenon is what happens to theprobability of avoiding a small risk event whenthe probability is increased. Even a doublingcould change the picture entirely.

For example, suppose the probability ofbeing involved in an accident on any one trip is0.0001. In 2000 trips the probability of not beinginvolved in an accident is about 0.82. If the prob-ability of being involved in an accident is dou-bled to 0.0002, the probability of not beinginvolved in an accident in 2000 trips falls to 0.67.

Some of the problems of interpreting humanbehaviour in the face of risk has to do with theproblem of people making decisions on the basisof subjective assessments of these probabilitieswhich may be quite different from the objectiveor true probabilities. To the educated, trader per-sonal psychology is the real difference between

Mind of the Investor

4 September 2006


winning and losing. One of the many issues toexamine within your personal psychology isyour particular personality. The Meyers Briggspersonality tests which companies routinely useto assess personality traits for leadership quali-ties is a useful tool for you as an investor. Canyou sit quietly in a room while the world isgoing about selling and buying or do you need tobe part of the herd? Do you want to lead and takea decision at any cost or does rationality ruleyour life?

Every time you lose money, think: your per-sonality is losing you the money, not the market.Every time you mistime the market in your irra-tional exuberance or cut back just when you areon threshold of making a killing, it’s your self-sabotaging personality that is causing it. While itis perfectly respectable and normal to make mis-takes initially, till you get a feel for trends, youneed to watch out if you are making the samemistakes. How far ahead have you got in yourlearning curve? But what isn’t so obvious is thatyour personality also determines what investingmistakes he or she is most likely to make.

Where do you fit in? Actually, that was a key finding of a study

done by the research firm of Mathew Greenwald& Associates Inc. for Merrill Lynch InvestmentManagers. Merrill divided the investors intofour distinct personality types. See if you canfind a match for yours.

Measured investors are secure in their finan-cial situation and confident they will have acomfortable retirement, Merrill Lynch said.

These investors are least likely to say theywaited too long to start investing or that theyhaven’t invested enough. Moreover, they areleast likely to be plagued by emotions such asfear and anxiety that commonly cause invest-ment mistakes.

Reluctant investors don’t particularly enjoyinvesting and prefer to spend as little time aspossible managing their holdings. Not surpris-ingly, that group was the most likely to have afinancial adviser. They are least likely to becomeoverly attached to an investment or to put toomuch money into a single holding.

Competitive investors enjoy investing, areinformed and try to beat the market. They aremost likely to have started investing early, to putenough money into their investments and toinvest regularly. On the downside, their enthusi-asm for investing can be their undoing. Theyhave a hard time letting go of losing invest-ments, often dedicate too much of their portfolioto one stock and tend to be greedy logging onfrequently to hot stocks.

Last, there are the unprepared investors,who have no control over their investment strat-egy. Lacking confidence, they are the kind whopush the accelerator when they should be break-ing. The survey involved 1,000 U.S. investorswho had annual house-hold income of at least$75,000 (U.S.) and at least $75,000 in assets toinvest.

Common errorsSome mistakes in investing commonly seen

and those that needs to be avoided are: Over-confidence: Researchers have found

that people consistently overrate their abilities,knowledge, and skill—especially in areas out-side of their expertise. So look for good advicefrom an objective source.

Anchoring and adjusting: Did you know thatin considering a decision, we often give dispro-portionate weight to the first information wereceive, hence anchoring our subsequentthoughts? Imagine the wrong information andits consequences. Multiple info sources oftenmitigate this flaw.

Framing: The decisions of investors areaffected by how a problem, or set of circum-stances, is presented. Even the same problemframed in different, and objectively equal, wayscan cause people to make different choices.Framing, too, plays a central role in assessingprobabilities.

Irrational escalation of a commitment:Investors tend to make choices that justify pastdecisions, even when circumstances change. Soonly consider future costs and benefits.

Confirmation trap: We all fall into the trap ofseeking out information that supports our exist-ing point of view while avoiding informationthat contradicts our opinion.

You must also understand how you tend toreact under stress. People with different person-ality profiles behave in dissimilar ways whenstressed. Here again, self-awareness and somebasic techniques to offset sub-optimal behaviourgo a long way. Here is what you can take awayfrom here: small probabilities add up whenchances are taken repeatedly. So take a test. Atype of personality test worth examining is theMeyers Briggs instrument. This will give you apointer to your risk averseness, gregariousnessetc. that will give you indications of how yourego guides your financial decisions and otherchoices in your life. Self introspection and seek-ing professional guidance will go a long way inmanaging your wealth better. ●

S. [email protected]

Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 11

NNaattuurree ooff SScchheemmee

IInnvveessttmmeenntt OObbjjeeccttiivvee

FFuunndd MMaannaaggeerr

IInncceeppttiioonn DDaattee((DDaattee ooff AAlllloottmmeenntt))

EEnnttrryy // SSaalleess LLooaadd((NNoonn-SSIIPP // SSTTPP))

EExxiitt LLooaadd((NNoonn-SSIIPP // SSTTPP))

IInnvveessttmmeennttPPllaann // OOppttiioonnss

MMiinniimmuumm AApppplliiccaattiioonn AAmmoouunntt((UUnnddeerr eeaacchh PPllaann))

LLoocckk-iinn PPeerriioodd

NNeett AAsssseett VVaalluuee((NNAAVV))

RReeddeemmppttiioonnPPrroocceeeeddss

HDFC Growth Fund

Open-ended GrowthScheme

To generate long termcapital appreciationfrom a portfolio that is invested predominantly in equity and equity related instruments.

Srinivas Rao Ravuri

September 11, 2000

Nil

Growth & Dividend

Nil

Every Business Day

Normally despatchedwithin 3 BusinessDays.

HDFC Equity Fund

Open-endedGrowth Scheme

To achieve capital appreciation.

Prashant Jain

January 1, 1995

Nil

Growth & Dividend

Nil

Every Business Day

Normallydespatched within3 Business Days.

HDFC Top 200 Fund

Open-ended Growth Scheme

To generate long term capital appreciation from aportfolio of equity and equity-linked instrumentsprimarily drawn from thecompanies in BSE 200index.

Prashant Jain

October 11, 1996

In respect of each purchase/ switch-in of Units, an ExitLoad of 1% is payable if units are redeemed / switched-out within 1 yearfrom the date of allotment.

Growth & Dividend

Nil

Every Business Day

Normally despatched within3 Business Days.

HDFC Capital Builder Fund

Open-endedGrowth Scheme

To achieve capital appreciation in the long term.

Tushar Pradhan

February 1, 1994

Nil

Growth & Dividend

Nil

Every Business Day

Normallydespatched within3 Business Days.

HDFC Core & SatelliteFund

Open-ended GrowthScheme

To generate capital appreciation through equity investment in companies whose sharesare quoting at prices belowtheir true value.

Dhawal Mehta

September 17, 2004

In respect of each purchase/ switch-in of Units, an ExitLoad of 1% is payable ifunits are redeemed /switched-out within 1 yearfrom the date of allotment.

Growth & Dividend

Nil

Every Business Day

Normally despatched within 3 Business Days.

HDFC Premier Multi-Cap Fund

Open-ended Growth Scheme

To generate capital appreciation in the long term through equity investments by investing in a diversified portfolio of Mid Cap & Large Cap‘blue chip’ companies.

Dhawal Mehta

April 6, 2005

Nil

Growth & Dividend

Nil

Every Business Day

Normally despatchedwithin 3 Business Days.

● In respect of eeaacchh purchase / switch-in of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.● In respect of eeaacchh purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Entry Load is payable.

Features of our open-ended schemes

For new investors : Rs. 5,000 and in multiples of Rs. 100 thereafter.For existing investors : Rs. 1,000 and in multiples of Rs. 100 thereafter.

The Dividend Plan offers Dividend Payout and Reinvestment facility.

Intouchmutually6 September 2006









MMiinniimmuumm AApppplliiccaattiioonn AAmmoouunntt((UUnnddeerr eeaacchh PPllaann))




HDFC Children’s Gift Fund^#

Open-ended Balanced Scheme

The primary objective of both the Plans viz.Investment Plan & Savings Plan under theScheme is to generate long term capital appreciation.

Investment Plan - Dhawal Mehta,Savings Plan - Tushar Pradhan

March 2, 2001

IInnvveessttmmeenntt PPllaann:: 2.25%SSaavviinnggss PPllaann:: 1.25%

● For Units subject to Lock-in Period: NIL;● For Units not subject to Lock-in Period: 3%

if the Units are redeemed / switched-out within one year from the date of allotment;2% if the Units are redeemed / switched-outbetween the first and second year of thedate of allotment; 1% if Units are redeemed/ switched-out between the second andthird year of the date of allotment; Nil if theUnits are redeemed / switched -out afterthird year from the date of allotment.

IInnvveessttmmeenntt PPllaann :: ((Equity Oriented)SSaavviinnggss PPllaann :: ((Debt Oriented)

IIff oopptteedd :: Until the Unit holder (being the beneficiary child) attains the age of 18 years or until completion of 3 years from date ofallotment, whichever is later.

Every Business Day

Normally despatched within 3 Business Days(subject to completion of Lock-in Period, if opted).

^ Eligibility (of Unit holder) : Children less than 18 years of age as on the date of investment by the Investor / Applicant are eligible as Unit holders in the Scheme. # Personal Accident Insurance Cover (for resident Unit holders only), equivalentto 10 times the face value of Units held by the Unit holder under all the applications / account statements / folios, subject to a maximum amount of Rs. 3 lakhs per Unit holder. The insurance premium in respect of the personal accident insurancecover will be borne by the AMC. This accident insurance cover is subject to conditions of the group personal accident insurance policy. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 11

HDFC Balanced Fund

Open-ended BalancedScheme

To generate capital appreciation along with current income from a combined portfolio of equity & equity-related and debt & money marketinstruments.

Tushar Pradhan

September 11, 2000

Nil

Growth & Dividend

Nil

Every Business Day


HDFC Prudence Fund

Open-ended BalancedScheme

To provide periodic returnsand capital appreciationover a long period of timefrom a judicious mix of equity and debt investments with an aim toprevent / minimise anycapital erosion.

Prashant Jain

February 1, 1994

In respect of each purchase /switch-in of Units, an ExitLoad of 1% is payable ifUnits are redeemed /switched-out within 1 yearfrom the date of allotment.

Growth & Dividend

Nil

Every Business Day


The Dividend Plan offers Dividend payout and Reinvestment facility.

● In respect of eeaacchh purchase / switch-in of Units lessthan Rs. 5 crore in value, an Entry Load of 2.25% ispayable.

● In respect of eeaacchh purchase / switch-in of Units equalto or greater than Rs. 5 crore in value, no Entry Loadis payable.

HDFC Index Fund

Open-ended Index Linked Scheme

NNiiffttyy PPllaann :: To generate returns that arecommensurate with the performance ofthe Nifty, subject to tracking errors.SSEENNSSEEXX PPllaann :: To generate returns that arecommensurate with the performance of the SENSEX, subject to tracking errors.SSEENNSSEEXX PPlluuss PPllaann :: To invest 80 to 90% ofthe net assets of the Plan in companieswhose securities are included in SENSEX and between 10% & 20% of the net assets incompanies whose securities are not included in the SENSEX.

Tushar Pradhan

July 17, 2002

Nil

● In respect of eeaacchh purchase / switch-in ofUnits upto and including Rs. 5 lakh invalue, an Exit Load of 1.00% is payable ifUnits are redeemed within one year fromthe date of allotment.

● In respect of eeaacchh purchase / switch-in ofUnits greater than Rs. 5 lakh in value, noExit Load is payable.

Nifty Plan, SENSEX Plan, SENSEX Plus PlanAt present, each Plan offers Growth Optiononly.

Nil

Every Business Day


For new investors : Rs. 5,000 and in multiples of Rs. 100 thereafter.For existing investors : Rs. 1,000 and in multiples of Rs. 100 thereafter.

Intouchmutually September 2006 7




FFuunndd MMaannaaggeerrss





MMiinniimmuumm AApppplliiccaattiioonn AAmmoouunntt




Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. # Previously HDFC Tax Plan 2000For Tax Benefits / Consequences, Please refer to page 11

HDFC Long Term AdvantageFund #Open-ended Equity Linked SavingsScheme with a lock-in period of 3 years

To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity-related instruments.

Tushar Pradhan

January 2, 2001

Nil

Growth & Dividend

Every Business Day

HDFC TaxSaver

Open-ended Equity Linked SavingsScheme with a lock-in period of 3 years

To achieve long term growth of capital.

Dhawal Mehta

December 18, 1995

Nil

Growth & Dividend

Every Business Day

3 years from the date of allotment of the respective Units

Normally despatched within 3 Business Days (subject to completionof Lock-in Period).

● In respect of eeaacchh purchase / switch-in of Units less than Rs. 5 crore invalue, an Entry Load of 2.25% is payable.

● In respect of eeaacchh purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.

For new & existing investors : Rs. 500 and in multiples thereafter.

HDFC MF Monthly Income Plan

An open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus

The primary objective of Scheme is to generate regular returns throughinvestment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme’s assets in equity andequity related instruments. However, there can be no assurance that theinvestment objective of the Scheme will be achieved.

LTP - Prashant Jain (Equities), Shabbir Kapasi (Debt), STP - Dhawal Mehta (Equities), Shobit Mehrotra (Debt)

December 26, 2003

Nil

FFoorr SSTTPP● In respect of eeaacchh purchase / switch-in of Units upto and

including Rs.10 lakhs in value, an Exit Load of 0.50% is payableif Units are redeemed / switched-out within 6 months from the date of allotment.

● In respect of eeaacchh purchase / switch-in of Units greater than Rs.10 lakhs in value, an Exit Load of 0.25% is payable if Units are redeemed / switched-out within 3 months from the date ofallotment.

FFoorr LLTTPP● In respect of eeaacchh purchase / switch-in of Units less than Rs. 5 crore in

value, an Exit Load of 1% is payable if Units are redeemed / switched-out within 1 year from the date of allotment.

● In respect of eeaacchh purchase / switch-in of Units equal to or greaterthan Rs. 5 crore in value, no Exit Load is payable.

Short Term Plan (STP) & Long Term Plan (LTP). Each Plan offers Growth, Monthly Dividend & Quarterly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment facility.

SShhoorrtt TTeerrmm PPllaann :: For new investors : (Growth & Quarterly Dividend Option) – Rs. 5,000 and in multiples of Rs. 100 thereafter under each Option.(Monthly Dividend Option) – Rs. 25,000 and in multiples of Rs. 100thereafter.For existing investors : Rs. 1000 and in multiples of Rs. 100 thereafter.LLoonngg TTeerrmm PPllaann :: For new investors :(Growth & Quarterly Dividend Option) – Rs. 5,000 and in multiples of Rs. 100 thereafter under each Option.(Monthly Dividend Option) – Rs. 25,000 and in multiples of Rs. 100thereafter.For existing investors : Rs. 1,000 and in multiples of Rs. 100 thereafter.

Nil

Every Business Day

Normally despatched within 3 Business Days


The Dividend Plan offers Dividend Payout and Reinvestment facility.



HDFC High Interest Fund (HHIF)

Open-ended Income Scheme

To generate income by investing in a rangeof debt and money market instruments ofvarious maturity dates with a view to maximise income while maintaining theoptimum balance of yield, safety and liquidity.

Anil Bamboli (HHIF), Shabbir Kapasi (HHIF - STP)

HHIF : April 28, 1997HHIF-STP : February 6, 2002

Nil

HHHHIIFF::● In respect of eeaacchh purchase / switch-in

of units up to and including Rs. 10lakhs in value, an Exit Load of 0.50% is payable if Units are redeemed /switched-out within 6 months from the date of allotment.

● In respect of eeaacchh purchase / switch-in of Units greater than Rs. 10 lakhs invalue, no Exit Load is payable.

HHHHIIFF - SSTTPP:: NNIILL

HHIF: Growth, Quarterly, Half Yearly and Yearly Dividend Options.HHIF-STP: Growth & Dividend OptionAll Dividend Options offer Dividend Payoutand Reinvestment facility.

(Under each Plan)For new Investors : Rs. 5,000 and in multiples of Rs. 100 thereafter.For existing investors : Rs. 1,000 and in multiples of Rs. 100 thereafter.

Nil

Every Business Day

Normally despatched within 3 Business Days

HDFC Income Fund


To optimise returns while maintaining a balance of safety, yield and liquidity.

Shabbir Kapasi

September 11, 2000

Nil

● In respect of eeaacchh purchase / switch-in of Units, upto and including Rs. 10 Lakh in value, an Exit Load of 0.50% is payable if Units are redeemed / switched - out within six months from date of allotment.

● In respect of eeaacchh purchase / switch-in (per Investor, per day) of Units, greater than Rs. 10 Lakh in value, no exit load is applicable.

Nil

Every Business Day


HDFC Multiple Yield Fund– Plan 2005


To generate positive returns over medium time frame with low risk of capital loss over medium time frame.

Tushar Pradhan (Equities), Anil Bamboli (Debt)

August 17, 2005

1%

● In respect of eeaacchh purchase / switch-in of Units, upto and including Rs. 2 crore in value, an Exit Load of 1.00% is payable if Units are redeemed / switched - out within 15 months fromdate of allotment.

● In respect of eeaacchh purchase / switch-in of Units greater than Rs. 2 crore in value, no Exit Load is payable.

Nil

Every Business Day

Normally depatched within 3 Business Days

HDFC Multiple Yield Fund


To generate positive returns over medium time frame with low risk of capital loss over medium time frame.

Dhawal Mehta (Equities), Anil Bamboli (Debt)

September 17, 2004

Nil (from October 10, 2006 toOctober 31, 2006)1% (upto October 9, 2006 and fromNovember 1, 2006)

● In respect of eeaacchh purchase / switch-in of Units, upto and including Rs. 2 crore in value, an Exit Load of 1.00% is payable if Units are redeemed / switched - out within 1 year from date of allotment.

● In respect of eeaacchh purchase / switch-in of Units greater than Rs. 2 crore in value, no Exit Load is payable.

Nil

Every Business Day

Normally depatched within 3 Business Days













Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.

For new investors : Rs 5,000 and in multiples of Rs. 100 thereafter. For existing investors: Rs. 1,000 and in multiples of Rs. 100 thereafter












HDFC Cash Management Fund

Savings & Call Plan: Open ended HighLiquidity Income Scheme.Savings Plus Plan (erstwhile InvestmentPlan - Growth Option): Open-ended IncomeScheme.

Savings & Call Plan: To generateoptimal returns while maintainingsafety and high liquidity.Savings Plus Plan: To generate regular income through investment in debtsecurities and money market instruments.

Shabbir Kapasi (Savings Plus Plan)Anil Bamboli (Savings Plan and Call Plan)

Savings & Savings Plus Plan:November 18, 1999Call Plan: February 6, 2002

Nil

Savings & Call Plan: NilSavings Plus Plan: In respect of eeaacchhpurchase / switch-in of Units, an Exit Loadof 0.01% is payable, if Units are redeemed/ switched-out within 7 days from date ofallotment.

SSaavviinnggss PPllaann && CCaallll PPllaann:: Growth Option &Daily Dividend Option. Savings Plan alsooffers Weekly Dividend Option. TheDividend Option offers Reinvestment facility only. SSaavviinnggss PPlluuss PPllaann :: Growth and Dividend Option. The Dividend Optionoffers Weekly Dividend Option (withReinvestment facility only)

.

SSaavviinnggss PPllaann :: ((GGrroowwtthh OOppttiioonn))Rs. 10,000 and in multiples of Rs. 1,000 thereafter.((DDiivviiddeenndd OOppttiioonn)) Rs. 1,00,000 and in multiples of Rs. 1,000 thereafter.CCaallll PPllaann:: ((UUnnddeerr EEaacchh OOppttiioonn))Rs. 1,00,000 and in multiples ofRs. 1,000 thereafter.SSaavviinnggss PPlluuss PPllaann :: New Investors : Rs. 5,000 and in multiplies of Rs. 100 thereafter.Existing Investors : Rs. 1,000 and in multiplies of Rs. 100 thereafter.

Nil

Savings & Call Plan: All Year RoundSavings Plus Plan: Every Business Day

Savings & Call Plan : Normally despatchedwithin 1 Business Day.Savings Plus Plan : Normally despatchedwithin 3 Business Days.


HDFC Short Term Plan (STP)


To generate regular income through investment in DebtSecurities and Money Market Instruments.

Anil Bamboli

February 28, 2002

Nil

● In respect of eeaacchh purchase / switch-in of Units, upto andincluding Rs. 25 crore in value, no Exit Load is payable.

● In respect of eeaacchh purchase / switch-in (per Investor, per day)of Units, greater than Rs. 25 crore in value, an Exit Load of0.25% is payable if Units are redeemed / switched-out within15 days from the date of allotment.

Growth & Dividend (Dividend Option offers Reinvestment facility only).

For new investors : Rs. 5,000 and in multiples ofRs. 100 thereafter.For existing investors : Rs. 1,000 and in multiples ofRs. 100 thereafter.

Nil

Every Business Day

Normally despatched within 3 Business Days .

HDFC Liquid Fund (HLF)

Open-ended Liquid Income Scheme

To enhance income consistent with a high level of liquidity, through a judicious portfolio mixcomprising of money market and debtinstruments.

Shobhit Mehrotra

HLF : October 17, 2000HLF – Premium Plan & HLF – Premium Plus Plan :February 24, 2003

Nil

Nil

HLF, HLF - Premium Plan & HLF - Premium Plus Plan.Each Plan offers Growth & Dividend Option.HLF - The Dividend Option offers Daily and WeeklyDividend Option (Reinvestment facility only) andMonthly Dividend Option (with payout andReinvestment facility).HLF Premium Plan - The Dividend Option offersDaily Dividend Option (with Reinvestment facilityonly) and Weekly Dividend Option.HLF Premium Plus Plan - The Dividend Option offersWeekly Dividend Option only.

HHLLFF :: Growth Option : Rs. 10,000 and in multiplesof Rs. 1,000 thereafter. Dividend Option : Rs. 1,00,000 and in multiples of Rs. 1,000 thereafter.HHLLFF –– PPrreemmiiuumm PPllaann (for new investors) :: Rs.5,00,00,000 and in multiples of Re. 1 thereafter foropening an account / folio (Under each Option). HHLLFF –– PPrreemmiiuumm PPlluuss PPllaann (for new investors) : Rs. 20,00,00,000 and in multiples of Re. 1 thereafter for opening an account / folio (Under each Option). HLF - Premium Plan & HLF – Premium Plus Plan (for Existing Investors) : Re. 1 and in multiplesthereafter under each Option.

Nil

All Year Round

Normally despatched within 1 Business Day.



HDFC Floating Rate Income Fund

Open-ended Income Scheme.

To generate regular income through investment in a portfolio comprising substantially of floatingrate debt / money market instruments, fixed rate debt / money market instruments swapped forfloating rate returns and fixed rate debt securities and money market instruments.

Shobhit Mehrotra

January 16, 2003

SShhoorrtt TTeerrmm PPllaann :: NilLLoonngg TTeerrmm PPllaann :: Nil

SShhoorrtt TTeerrmm PPllaann :: NilLLoonngg TTeerrmm PPllaann :: In respect of each purchase / switch-in of units, upto and including Rs. 10 lakhs in value, an Exit Load of 0.50% is payable if units are redeemed / switched-outwithin 6 months from the date of allotment.In respect of each purchase / switch-in of units greater than Rs. 10 lakhs in value, no Exit Load is payable.

SShhoorrtt TTeerrmm PPllaann :: For investors who wish to invest for short time period.LLoonngg TTeerrmm PPllaann :: For investors who wish to invest for relatively longer time period.

SShhoorrtt TTeerrmm PPllaann :: Growth and Dividend Option. The Dividend Option offers Daily and WeeklyDividend Option (with Reinvestment facility only) and Monthly Dividend Option (with payout and Reinvestment facility).LLoonngg TTeerrmm PPllaann :: Growth and Dividend Option. The Dividend Option offers Reinvestment facility only.

SShhoorrtt TTeerrmm PPllaann :: ((GGrroowwtthh OOppttiioonn))Rs. 10,000 and in multiples of Rs. 1,000 thereafter.((DDiivviiddeenndd OOppttiioonn)) Rs. 1,00,000 and in multiples of Rs. 1,000 thereafter.LLoonngg TTeerrmm PPllaann :: For new investors : Rs. 5,000 and in multiples of Rs. 100 thereafter.For existing investors : Rs. 1,000 and in multiples of Rs. 100 thereafter.

Nil

SShhoorrtt TTeerrmm PPllaann :: All Year RoundLLoonngg TTeerrmm PPllaann :: Every Business Day

Normally despatched within 3 BusinessDays (1 Business Day in case of Short Term Plan).

HDFC Gilt Fund

Open-ended Income Scheme.

To generate credit risk-free returns through investmentsin sovereign securities issued by the CentralGovernment and / or a State Government.

Shabbir Kapasi

July 25, 2001

Nil

Nil

SShhoorrtt TTeerrmm PPllaann :: For investors who wish to invest for short time period. LLoonngg TTeerrmm PPllaann :: For investors who wish to invest forrelatively longer time period.

(Under each Plan / Option)For new investors :Rs. 5,000 and in multiples of Rs. 100 thereafter.For existing investors :Rs. 1,000 and in multiples of Rs. 100 thereafter.

Nil

Every Business Day













Each Plan offers Growth and Dividend Options.The Dividend Option offers Dividend Payout andReinvestment facility.

Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units.



TTaaxx BBeenneeffiittss // CCoonnsseeqquueenncceess :: Income distributed by the Scheme(s) will be exempt from Income-tax in the hands of investors. Distribution tax in case of Scheme(s) other than open-ended equity-oriented funds shall be payable by the mutual fund at the rate of 14.025% (including surcharge and education cess) on income distributed to an individual/HUFand at the rate of 22.44% (including surcharge and education cess) on income distributed to any other investor. Units of the Scheme(s) are not subject to Wealth-tax and Gift-tax.Unit holders are required to pay Securities Transaction Tax (STT) at the rate of 0.25% at the time of redemption / switch-out of units of an equity-oriented fund.

DDaattee PPeerriioodd NNAAVV RReettuurrnnss BBeenncchhmmaarrkkppeerr UUnniitt ((RRss..)) ((%%))^̂ RReettuurrnnss ((%%))##

^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns# SENSEX

Portfolio – Top 10 Holdings (as at September 30, 2006)

HDFCGrowth Fund

Relative Performance ^ (Growth Plan)

+ Industry Classification as recommended by AMFI

An open-ended growth scheme

HDFCEquity Fund


Industrial Capital Goods 15.24Consumer Non Durables 14.37Pharmaceuticals 10.79Auto Ancillaries 9.88Software 8.97Cement 5.93Petroleum Products 5.79Banks 5.59

Oil 5.47Telecom - Services 4.39Textile Products 2.91Auto 2.47Chemicals 1.80Metals 1.08Power 1.04Engineering 0.41

Industry Allocation of Equity Holding (% of Net Assets)

PPoorrttffoolliioo TTuurrnnoovveerr RRaattiioo ((LLaasstt 11 YYeeaarr)) 4455..6666%%

NAV (as at September 29, 2006) NAV per Unit (Rs.)

Growth Plan 43.446Dividend Plan 26.718

Std Deviation Beta Sharpe Ratio*

Risk Ratio (for the 3-yr period ended September 29, 2006) 7.19% 0.9854 0.51



IN EQUITY - DIVERSIFIED CATEGORY(72 schemes) for 3 and 5 year

periods ending September 30, 2006



^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ~Due to an over all sharp rise in the stock prices** Compounded Annualised Returns #S&P CNX 500 (Please refer to page no 31)

Mar 31, 06 Last 182 days 127.169 5.22* 2.68*Sep 29, 05 Last 1 Year (365 days) 93.171 43.62* 30.96*Sep 29, 03 Last 3 Years (1096 days) 38.399 51.55**~ 38.39**Sep 28, 01 Last 5 Years (1827 days) 14.860 55.13**~ 38.58**Sep 27, 96 Last 10 Years (3654 days) 5.850 36.70** 16.77**Jan 01, 95 Since Inception (4289 days) 10.000 24.70** 10.01**

Mar 31, 06 Last 182 days 41.236 5.36* 10.41*Sep 29, 05 Last 1 Year (365 days) 31.363 38.53* 43.98*Sep 29, 03 Last 3 Years (1096 days) 13.785 46.56** 41.39**Sep 28, 01 Last 5 Years (1827 days) 6.352 46.83** 34.63**Sep 11, 00 Since Inception (2209 days) 10.000 27.47** 17.49**




PPoorrttffoolliioo TTuurrnnoovveerr RRaattiioo ((LLaasstt 11 YYeeaarr)) 112255..5566%%+ Industry Classification as recommended by AMFI

Total outstanding position (as at September 30, 2006) in Derivative Instruments (Notional) Rs. 166.12 lacs.

✤ PPaasstt ppeerrffoorrmmaannccee iiss nnoo gguuaarraanntteeee ooff ffuuttuurree rreessuullttss.. Please refer to page no 31 for details on the Rating Methodology


Software 16.44Industrial Capital Goods 14.14Consumer Non Durables 11.29Petroleum Products 9.13Banks 8.24Auto Ancillaries 7.95Media & Entertainment 6.72Auto 4.63Oil 3.76Transportation 2.78

Pesticides 2.25Pharmaceuticals 2.05Hardware 2.00Textiles - Silk 1.77Metals 1.60Telecom - Services 1.34Textiles - Synthetic 0.78Chemicals 0.67IT Consulting & Services –


CCoommppaannyy IInndduussttrryy++ %% ttoo NNAAVV

EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDDivi’s Laboratories Ltd. Pharmaceuticals 6.17 Infosys Technologies Ltd. Software 6.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 5.79 State Bank of India Banks 5.59 Oil & Natural Gas Corporation Ltd. Oil 5.47 Crompton Greaves Ltd. Industrial Capital Goods 5.20 Goodlass Nerolac Paints Ltd. Consumer Non Durables 5.04 Reliance Industries Ltd. Petroleum Products 4.95 Hindustan Lever Ltd. Consumer Non Durables 4.66 Apollo Tyres Ltd. Auto Ancillaries 4.64 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 5533..5522TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9966..1133Other Current Assets (Including Reverse Repos’ / CBLO) 3.87 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 3333,,113388..6666


EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDInfosys Technologies Ltd. Software 9.25 ITC Ltd. Consumer Non Durables 6.82 Crompton Greaves Ltd. Industrial Capital Goods 5.51 Satyam Computer Services Ltd. Software 5.15 Reliance Industries Ltd. Petroleum Products 5.02 Amtek Auto Ltd. Auto Ancillaries 4.72 Bharat Heavy Electricals Ltd. Industrial Capital Goods 4.49 Siemens Ltd. Industrial Capital Goods 4.14 Bank of Baroda Banks 4.12 State Bank of India Banks 4.12 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 5533..3344TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9977..5544Other Current Assets (Including Reverse Repos’ / CBLO) 2.46 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 334499,,885533..5599




Source : CRISIL Fund Analyser * Risk-free rate assumed to be 5% Source : CRISIL Fund Analyser * Risk-free rate assumed to be 5%

HDFC Top 200 Fund




DDaattee PPeerriioodd NNAAVV RReettuurrnnss BBeenncchhmmaarrkkppeerr UUnniitt ((RRss..)) ((%%)) $$^ RReettuurrnnss ((%%))##


^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #BSE 200 ~ Due to an overall sharp rise in stock prices$$ Adjusted for the dividends declared under the scheme prior to its splittng into theDividend and Growth Plans

Mar 31, 06 Last 182 days 96.260 4.77* 5.87*Sep 29, 05 Last 1 Year (365 days) 70.121 43.83* 36.17*Sep 29, 03 Last 3 Years (1096 days) 29.852 49.99** 38.10**Sep 28, 01 Last 5 Years (1827 days) 11.770 53.60**~ 38.90**Sep 27, 96 Last 10 Years (3654 days) 9.935 28.57** .NAOct 11, 96 Since Inception (3640 days) 10.000 28.61** 16.96**





CCoommppaannyy // IIssssuueerr IInndduussttrryy++ %% ttoo NNAAVV EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDReliance Industries Ltd. Petroleum Products 6.23 Oil & Natural Gas Corporation Ltd. Oil 6.22 Infosys Technologies Ltd. Software 4.48 Tata Consultancy Services Ltd. Software 3.96 Bharti Airtel Ltd. Telecom - Services 3.71 ITC Ltd. Consumer Non Durables 3.41 Bharat Heavy Electricals Ltd. Industrial Capital Goods 3.21 Crompton Greaves Ltd. Industrial Capital Goods 3.04 Wipro Ltd. Software 3.00 State Bank of India Banks 2.94 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 4400..2200TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9944..6655DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttState Bank of Indore P1+ 1.33 ABN AMRO Bank P1+ 0.33 TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 11..6666Other Current Assets (Including Reverse Repos’ / CBLO) 3.69 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 114488,,448866..6688



Total outstanding position (as at September 30, 2006) in Derivative Instruments (Notional) Rs. 1,741.43 lacs.






^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns #S&P CNX 500 (Please refer to page no 31)** Compounded Annualised Returns ~ Due to an overall sharp rise in stock prices

Mar 31, 06 Last 182 days 60.169 -4.81* 2.68*Sep 29, 05 Last 1 Year (365 days) 48.780 17.42* 30.96*Sep 29, 03 Last 3 Years (1096 days) 16.766 50.55**~ 38.39**Sep 28, 01 Last 5 Years (1827 days) 8.640 45.92** 38.58**Sep 27, 96 Last 10 Years (3654 days) 6.260 24.75** 16.77**Feb 01, 94 Since Inception (4623 days) 10.000 14.77** 8.50**




EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDContainer Corporation of India Ltd. Transportation 6.19 State Bank of India Banks 5.20 Bharat Heavy Electricals Ltd. Industrial Capital Goods 5.16 SKF India Ltd. Industrial Products 5.14 Carborundum Universal Ltd. Auto Ancillaries 4.64 Sintex Industries Ltd. Industrial Products 4.44 Bharat Electronics Ltd. Industrial Capital Goods 4.39 Hindustan Lever Ltd. Consumer Non Durables 4.16 Hindustan Zinc Ltd. Non - Ferrous Metals 4.13 Cranes Software International Ltd. Software 3.74 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 4477..1199TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9999..5500Other Current Assets (Including Reverse Repos’ / CBLO) 0.50 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 7799,,008888..4466

Software 13.67Consumer Non Durables 13.24Petroleum Products 10.60Industrial Capital Goods 10.11Banks 9.00Oil 6.22Auto Ancillaries 5.84Telecom - Services 5.58Pharmaceuticals 4.90Auto 3.93

Media & Entertainment 2.89Gas 2.20Transportation 2.04Power 1.76Pesticides 0.99Cement 0.68Industrial Products 0.48Metals - Aluminium 0.29Textiles - Silk 0.23

Industry Allocation of Equity Holding (% of Net Assets) Industrial Capital Goods 12.67Consumer Non Durables 12.63Auto Ancillaries 10.62Software 9.59Industrial Products 9.58Ferrous Metals 8.41Banks 8.21Transportation 8.14Non - Ferrous Metals 4.13Pharmaceuticals 3.16Textile Products 2.72

Telecom - Equipment & Accessories 2.38Textiles - Cotton 1.84Chemicals 1.49Steel 1.37Textiles - Silk 1.32Hotels 1.24Construction –Electrical Components & Equipments –









An open-ended growth scheme An open-ended growth scheme


EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDSatyam Computer Services Ltd. Software 7.45 Tata Motors Ltd. Auto 7.28 Crompton Greaves Ltd. Industrial Capital Goods 7.11 ITC Ltd. Consumer Non Durables 6.96 Infosys Technologies Ltd. Software 6.73 Bharat Heavy Electricals Ltd. Industrial Capital Goods 6.24 Reliance Industries Ltd. Petroleum Products 5.48 Hindustan Lever Ltd. Consumer Non Durables 5.02 Hindalco Industries Ltd. Non - Ferrous Metals 4.90 Hindustan Zinc Ltd. Non - Ferrous Metals 4.63 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 6611..8800TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9966..6655Other Current Assets (Including Reverse Repos’ / CBLO) 3.35 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 7766,,991133..7799


HDFC Core & Satellite Fund



Mar 31, 06 Last 182 days 23.820 -0.60* 5.87*Sep 29, 05 Last 1 Year (365 days) 17.239 37.35* 36.17*Sep 17, 04 Since Inception (742 days) 10.000 52.81**~ 42.81**


Software 15.43Industrial Capital Goods 13.35Consumer Non Durables 11.98Non - Ferrous Metals 9.53Auto 7.28Auto Ancillaries 6.08Petroleum Products 5.48Pharmaceuticals 4.62Pesticides 3.95Cement 3.74Telecom - Services 3.66Power 3.04Industrial Products 3.01Chemicals 2.18Construction 2.07Consumer Durables 1.25



Growth Option 23.678Dividend Option 20.962

Relative Performance ^ (Growth Option)





^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns#S&P CNX 500 (Please refer to page no 31)

Mar 31, 06 Last 182 days 16.751 -0.82* 2.68*Sep 29, 05 Last 1 Year (365 days) 13.204 25.83* 30.96*Apr 06, 05 Since Inception (541 days) 10.000 40.85** 40.41**

CCoommppaannyy // IIssssuueerr IInndduussttrryy++ %% ttoo NNAAVV

EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDMaruti Udyog Ltd. Auto 6.93 Satyam Computer Services Ltd. Software 6.74 ITC Ltd. Consumer Non Durables 6.63 Bharti Airtel Ltd. Telecom - Services 6.63 Infosys Technologies Ltd. Software 6.53 Crompton Greaves Ltd. Industrial Capital Goods 6.53 Hindalco Industries Ltd. Non - Ferrous Metals 6.51 Hindustan Lever Ltd. Consumer Non Durables 6.05 Amtek Auto Ltd. Auto Ancillaries 5.83 Bharat Heavy Electricals Ltd. Industrial Capital Goods 5.65 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 6644..0033TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9966..3333Other Current Assets (Including Reverse Repos’ / CBLO) 3.67 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 8844,,994499..6688


Industrial Capital Goods 20.97Software 13.27Consumer Non Durables 12.68Auto 6.93Telecom - Services 6.63Non - Ferrous Metals 6.51Auto Ancillaries 5.83Paper 4.77Textiles - Synthetic 4.76Pesticides 3.42Oil 3.10Petroleum Products 2.76Power 1.72Construction 1.62Textile Products 1.36




^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree*Absolute Returns #BSE 200 ** Compounded Annualised Returns~ Due to an overall sharp rise in stock prices



EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDReliance Industries Ltd. Petroleum Products 10.43 Infosys Technologies Ltd. Software 9.49 ICICI Bank Ltd. Banks 7.24 ITC Ltd. Consumer Non Durables 5.72 Housing Development Finance Corporation Ltd.$ Finance 4.00 Oil & Natural Gas Corporation Ltd. Oil 3.87 Bharti Airtel Ltd. Telecom - Services 3.60 Larsen and Toubro Ltd. (New) Industrial Capital Goods 3.53 Hindustan Lever Ltd. Consumer Non Durables 3.28 Reliance Communication Ventures Ltd Telecom - Services 2.95 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 5544..1111TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9922..2255Other Current Assets (Including Reverse Repos’ / CBLO) 7.75 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 11,,443388..9977



Relative Performance ^

+ Industry Classification as recommended by AMFI $ Sponsor✤ PPaasstt ppeerrffoorrmmaannccee iiss nnoo gguuaarraanntteeee ooff ffuuttuurree rreessuullttss..

Please refer to page no 31 for details on the Rating Methodology

SENSEX Plan (Face Value per Unit: Rs. 32.161)


^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns#SENSEX (Total Returns Index) ^^Face Value per Unit

Mar 31, 06 Last 182 days 104.7647 10.89* 12.42*Sep 29, 05 Last 1 Year (365 days) 81.4542 42.62* 47.89*Sep 29, 03 Last 3 Years (1096 days) 44.2030 37.96** 46.00**Jul 17, 02 Since Inception (1535 days) 32.1610^^ 35.71** 41.94**


Growth Option 116.1684

An open-ended index linked scheme

HDFC Index Fund HDFC Index Fund

NIFTY Plan (Face Value per Unit: Rs. 10.326)



^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns#S&P CNX Nifty (Total Returns Index) ^^Face Value per Unit





EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDOil & Natural Gas Corporation Ltd. Oil 8.68 Reliance Industries Ltd. Petroleum Products 8.50 Infosys Technologies Ltd. Software 5.33 Tata Consultancy Services Ltd. Software 5.21 Bharti Airtel Ltd. Telecom - Services 4.62 Wipro Ltd. Software 3.91 ITC Ltd. Consumer Non Durables 3.67 ICICI Bank Ltd. Banks 3.25 Bharat Heavy Electricals Ltd. Industrial Capital Goods 3.06 Hindustan Lever Ltd. Consumer Non Durables 2.95 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 4499..1188TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9911..1166Other Current Assets (Including Reverse Repos’ / CBLO) 8.84 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 663366..2222




Software 16.50Banks 12.76Petroleum Products 10.43Consumer Non Durables 9.00Auto 6.99Telecom - Services 6.55Industrial Capital Goods 5.89

Cement 4.87Finance 4.00Oil 3.87Pharmaceuticals 3.85Power 3.15Ferrous Metals 2.58Non - Ferrous Metals 1.81


Software 16.77Petroleum Products 9.56Banks 8.79Oil 8.68Telecom - Services 7.91Consumer Non Durables 7.03Industrial Capital Goods 6.50Auto 6.44Pharmaceuticals 3.95

Ferrous Metals 3.22Cement 3.00Power 2.97Finance 1.99Non - Ferrous Metals 1.84Gas 1.16Media & Entertainment 0.66Chemicals 0.40Transportation 0.29


IN EQUITY - INDEX(18 schemes) for 3 and 5 year


TTrraacckkiinngg EErrrroorr SSiinnccee IInncceeppttiioonn ((AAnnnnuuaalliisseedd)) 22..4488%% TTrraacckkiinngg EErrrroorr SSiinnccee IInncceeppttiioonn ((AAnnnnuuaalliisseedd)) 22..9922%%



EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDReliance Industries Ltd. Petroleum Products 9.18 Infosys Technologies Ltd. Software 8.37 ICICI Bank Ltd. Banks 6.39 ABB Ltd. Industrial Capital Goods 6.17 ITC Ltd. Consumer Non Durables 5.05 Sun Pharmaceutical Industries Ltd. Pharmaceuticals 4.91 Housing Development Finance Corporation Ltd.$ Finance 3.52 Oil & Natural Gas Corporation Ltd. Oil 3.42 Larsen and Toubro Ltd. (New) Industrial Capital Goods 3.29 Bharti Airtel Ltd. Telecom - Services 3.18 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 5533..4488TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9955..2200Other Current Assets (Including Reverse Repos’ / CBLO) 4.80 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 994488..0011





^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns#SENSEX (Total Returns Index) ^^ Face Value per Unit


+ Industry Classification as recommended by AMFI $ Sponsor

SENSEX Plus Plan (Face Value per Unit: Rs. 32.161)




HDFC Index Fund

Software 14.55Industrial Capital Goods 11.56Banks 11.26Petroleum Products 9.18Pharmaceuticals 8.31Consumer Non Durables 7.94Auto 6.16Telecom - Services 5.78

Cement 4.30Finance 3.53Oil 3.42Power 2.77Industrial Products 2.48Ferrous Metals 2.28Non - Ferrous Metals 1.68Gas –


Dividend History ^

Jan 13, 06 19.3010 2.2500 2.2500

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRee..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrss

HDFC Core & Satellite Fund

Aug 06, 99 16.030 1.60Nov 29, 99 19.100 2.00Mar 24, 00 21.520 3.00Dec 22, 00 12.660 1.70Mar 15, 02 13.470 1.20Jul 15, 03 17.097 2.00

Sep 30, 03 18.792 2.50Mar 19, 04 20.790 1.50

RReeccoorrdd DDaattee NNAAVV ppeerr UUnniitt ((RRss..)) DDiivviiddeennddCCuumm DDiivviiddeenndd PPeerr UUnniitt ((RRss..))


HDFC Equity Fund

Jan 07, 00 25.810 2.50Mar 24, 00 24.810 2.50Aug 25, 00 16.030 2.10Feb 23, 01 13.840 2.00Mar 15, 02 12.440 1.20Jul 15, 03 16.272 2.00Oct 31, 03 19.899 2.50

Mar 08, 04 21.959 1.50



HDFC Top 200 Fund

Jul 07, 00 13.810 2.00Jan 30, 04 19.4770 5.00



Sep 01, 03 13.071 1.50Feb 27, 04 16.122 2.00


HDFC Growth Fund

Mar 18, 02 11.600 1.20Feb 14, 03 12.172 1.20Feb 13, 04 26.075 2.00Mar 15, 04 22.937 2.00


HDFC Long Term Advantage Fund(An open-ended equity linked savings scheme with a lock-in period of 3 years)

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssNov 30, 04 23.4450 3.00 3.00Mar 17, 06 41.8770 5.00 5.00

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssDec 15, 04 24.0660 3.0000 3.0000Feb 17, 06 36.4090 4.5000 4.5000

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssFeb 04, 05 22.5520 5.0000 5.0000Feb 17, 06 26.6200 5.0000 5.0000

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssFeb 04, 05 32.588 5.0000 5.0000Jan 13, 06 44.270 6.0000 6.0000

HDFC Balanced FundRReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRee..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssMar 18, 05 18.7610 4.0000 4.0000

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssDec 30, 05 18.2720 2.0000 2.0000

Aug 06, 99 16.450 2.00Nov 29, 99 17.730 2.00Apr 07, 00 15.200 1.50Mar 09, 01 12.700 0.90Mar 15, 02 13.900 1.00Jul 15, 03 18.737 2.00

Dec 26, 03 23.711 3.00Mar 15, 04 20.247 1.50



HDFC Prudence Fund

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssMar 18, 05 25.2650 5.0000 5.00Mar 03, 06 30.5430 5.0000 5.00

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssDec 15, 04 17.7110 2.0000 2.0000Dec 30, 05 23.1230 2.5000 2.5000

^̂ PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree.. All dividends are on face value of Rs.10 per Unit. After payment of the dividend, the per Unit NAV will fall tothe extent of the payout and distribution tax (if applicable).

Dividend Plan

Dividend Plan

Dividend Plan

Dividend Plan

Dividend Plan

Dividend Plan

Dividend Plan

Aug 06, 99 25.690 3.60Nov 29, 99 35.440 5.00Apr 03, 00 41.580 21.00Mar 30, 01 15.720 1.60Mar 15, 02 17.940 2.00Jul 15, 03 19.9220 2.00

Feb 27, 04 28.4330 2.00Mar 15, 04 26.7160 2.00



HDFC Tax Saver(An open-ended equity linked savings scheme with a lock-in period of 3 years)

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrssFeb 17, 05 40.572 5.0000 5.0000Mar 17, 06 67.080 7.5000 7.5000

Dividend Plan

Dividend Option


Dividend Option

Mar 03, 06 15.7560 1.7500 1.7500

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRss..)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrss


+ Industry Classification as recommended by AMFI $ Sponsor





^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #CRISIL Balanced Fund Index

Mar 31, 06 Last 182 days 28.875 4.09* 5.07*Sep 29, 05 Last 1 Year (365 days) 24.175 24.33* 23.65*Sep 29, 03 Last 3 Years (1096 days) 14.080 28.73** 23.39**Sep 28, 01 Last 5 Years (1827 days) 8.368 29.11** .NASep 11, 00 Since Inception (2209 days) 10.000 19.94** .NA


HDFC Balanced FundAn open-ended balanced scheme

HDFCPrudence Fund

An open-ended balanced scheme

DDaattee PPeerriioodd NNAAVV RReettuurrnnss BBeenncchhmmaarrkkppeerr UUnniitt ((RRss..)) ((%%))$$$$^̂ RReettuurrnnss ((%%))##




^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #CRISIL Balanced Fund Index$$ Adjusted for the dividends declared under the scheme prior to its splittng into theDividend and Growth Plans ~ Due to an over all sharp rise in the stock prices

Mar 31, 06 Last 182 days 95.347 8.23* 5.07*Sep 29, 05 Last 1 Year (365 days) 78.290 31.81*~ 23.65*Sep 29, 03 Last 3 Years (1096 days) 37.233 40.42**~ 23.39**Sep 28, 01 Last 5 Years (1827 days) 19.230 39.89**~ .NASep 27, 96 Last 10 Years (3654 days) 8.080 30.17**~ .NAFeb 01, 94 Since Inception (4623 days) 10.000 22.70** .NA

IN HYBRID EQUITY - ORIENTED CATEGORY(21 schemes) for 3 and 5 year


PPoorrttffoolliioo TTuurrnnoovveerr RRaattiioo ((LLaasstt 11 YYeeaarr)) 113300..1111%%+ Industry Classification as recommended by AMFI $ Sponsor


CCoommppaannyy // IIssssuueerr IInndduussttrryy++ // RRaattiinngg %% ttoo NNAAVV

EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDGreat Eastern Shipping Company Ltd. Transportation 7.19 Grasim Industries Ltd. Cement 6.94 Tata Consultancy Services Ltd. Software 6.91 State Bank of India Banks 6.52 ITC Ltd. Consumer Non Durables 6.35 Associated Cement Companies Ltd. Cement 6.30 Infosys Technologies Ltd. Software 6.26 Bharat Heavy Electricals Ltd. Industrial Capital Goods 6.08 Asian Hotels Ltd. Hotels 5.37 Fulford (India) Ltd. Pharmaceuticals 3.61 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 6611..5533TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 7700..3300DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttLoan Securitisation Trust - Grasim Industries Ltd. AAA(SO) 5.15 Indian Railways Finance Corp. Ltd. AAA 4.07 Indian Oil Corporation Ltd. AAA 4.05 Housing Dev. Finance Corpn Ltd.$ AAA 4.05 Loan Securitisation Trust - Bajaj Auto Ltd. AAA(SO) 3.88 Loan Securitisation Trust - Reliance Industries Ltd. AAA(SO) 2.04 TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 2233..2244((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))Other Current Assets (Including Reverse Repos’ / CBLO) 6.46 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 1111,,882277..1111

Portfolio – Top Holdings (as at September 30, 2006)

CCoommppaannyy // IIssssuueerr IInndduussttrryy++ // RRaattiinngg %% ttoo NNAAVV EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDInfosys Technologies Ltd. Software 4.99 AIA Engineering Ltd. Engineering 3.96 Crompton Greaves Ltd. Industrial Capital Goods 3.88 Exide Industries Ltd. Auto Ancillaries 3.78 Bank of Baroda Banks 3.46 GlaxoSmithkline Consumer Healthcare Consumer Non Durables 3.29 State Bank of India Banks 3.20 Zee Telefilms Ltd. Media & Entertainment 3.02 Pidilite Industries Ltd. Consumer Non Durables 2.94 ITC Ltd. Consumer Non Durables 2.92 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 3355..4444TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 7733..2299DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttICICI Bank Ltd. P1+ 7.19 HDFC Bank Ltd. 3.37 State Bank Of Hyderabad A1+ 2.45 UTI Bank Ltd. AA+ 1.54 Associated Cement Companies Ltd. AA+ 1.31 National Housing Bank F1+ 1.30 Ultratech Cemco Ltd. AA+ 1.25 Housing Dev. Finance Corpn Ltd.$ AAA 1.04 Export - Import Bank of India AAA 1.02 IDBI Bank Ltd. AA+ 0.80 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 2211..2277((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 2244..0055Other Current Assets (Including Reverse Repos’ / CBLO) 2.66 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 119922,,779966..4422


Cement 13.24Software 13.17Transportation 7.19Banks 6.52Consumer Non Durables 6.35Industrial Capital Goods 6.08

Pharmaceuticals 5.92Hotels 5.37Fertilisers 3.28Chemicals 1.91Telecom - Equipment & Accessories 1.27

Industry Allocation of Equity Holding (% of Net Assets)Consumer Non Durables 14.60Auto Ancillaries 13.26Banks 8.73Industrial Capital Goods 6.39Software 6.26Engineering 5.61Media & Entertainment 4.15Industrial Products 2.65Consumer Durables 1.77Paper 1.53Pesticides 1.52

Transportation 1.46Chemicals 1.33Auto 0.97Power 0.96Textiles - Silk 0.68Metals 0.56Textiles - Synthetic 0.48Pharmaceuticals 0.24Trading 0.14IT Consulting & Services –



HDFC Children’s Gift FundAn open-ended balanced scheme

HDFC Children’s Gift FundAn open-ended balanced scheme

Investment Plan


Mar 31, 06 Last 182 days 23.890 -0.33* 5.07*Sep 29, 05 Last 1 Year (365 days) 20.938 13.72* 23.65*Sep 29, 03 Last 3 Years (1096 days) 15.316 26.41** 23.39**Sep 28, 01 Last 5 Years (1827 days) 9.546 26.49** .NAMar 02, 01 Since Inception (2037 days) 10.000 22.44** .NA




PPoorrttffoolliioo TTuurrnnoovveerr RRaattiioo ((LLaasstt 11 YYeeaarr)) 6633..1177%%+ Industry Classification as recommended by AMFI $ Sponsor



Mar 31, 06 Last 182 days 14.807 -0.05* 3.52*Sep 29, 05 Last 1 Year (365 days) 14.573 1.56* 8.32*Sep 29, 03 Last 3 Years (1096 days) 14.220 10.59** 7.85**Sep 28, 01 Last 5 Years (1827 days) 10.692 12.45** .NAMar 02, 01 Since Inception (2037 days) 10.000 12.44** .NA

Savings Plan


Growth option 14.800

AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy ((OOtthheerr tthhaann eeqquuiittyy iinnvveessttmmeennttss)) 11..7733 yyeeaarrss+ Industry Classification as recommended by AMFI $ Sponsor

Portfolio – Top Holdings (as at September 30, 2006)CCoommppaannyy // IIssssuueerr IInndduussttrryy++ // RRaattiinngg %% ttoo NNAAVV

EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDBirla Corporation Ltd. Cement 4.33 Goodlass Nerolac Paints Ltd. Consumer Non Durables 4.11 Bharat Heavy Electricals Ltd. Industrial Capital Goods 4.07 Himatsingka Seide Ltd. Textiles - Silk 2.24 Dredging Corporation of India Ltd. Dredging 1.18 Synergy Mulitbase Ltd. Consumer Non Durables 1.18 Spanco Telesystems and Solutions Ltd. Hardware 0.83 Intelenet BPO services Ltd. IT Consulting & Services 0.42 TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 1188..3366DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttLoan Securitisation Trust - Grasim Industries Ltd. AAA(SO) 11.62 Housing Dev. Finance Corpn Ltd.$ AAA 9.75 Power Finance Corpn Ltd. AAA 8.14 ABN AMRO Bank P1+ 8.00 Associated Cement Companies Ltd. AA+ 5.12 Citicorp Finance (India) Ltd. AAA 5.06 Export - Import Bank of India AAA 4.98 Indian Railways Finance Corp. Ltd. AAA 4.90 Citi Financial Consumer Fin.(I) Ltd AAA 4.19 Standard Chartered Bank AAA 1.90 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 6633..6666((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 6688..9911Other Current Assets (Including Reverse Repos’ / CBLO) 12.73 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 55,,889988..7744


Auto 9.70Software 9.59Industrial Capital Goods 8.52Consumer Non Durables 8.40Industrial Products 6.95Pharmaceuticals 6.76Telecom - Services 5.18

Non - Ferrous Metals 3.84Petroleum Products 3.62Auto Ancillaries 2.93Power 2.64Textiles - Synthetic 2.10Trading 1.41


Consumer Non Durables 5.29Cement 4.33Industrial Capital Goods 4.07Textiles - Silk 2.24

Dredging 1.18Hardware 0.83IT Consulting & Services 0.42



EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDBharti Airtel Ltd. Telecom - Services 5.18 Tata Motors Ltd. Auto 4.94 Infosys Technologies Ltd. Software 4.90 Maruti Udyog Ltd. Auto 4.76 Satyam Computer Services Ltd. Software 4.69 Graphite India Ltd. Industrial Products 4.52 Thermax Ltd. Industrial Capital Goods 4.29 Bharat Heavy Electricals Ltd. Industrial Capital Goods 4.23 Reliance Industries Ltd. Petroleum Products 3.62 Cipla Ltd. Pharmaceuticals 3.47 TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 4444..6600TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 7711..6644DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttJUS Trust - Jet Airways AAA(SO) 6.63 Loan Securitisation Trust - Grasim Industries Ltd. AAA(SO) 5.38 Loan Securitisation Trust - Bajaj Auto Ltd. AAA(SO) 2.31 Indian Railways Finance Corp. Ltd. AAA 1.70 Housing Dev. Finance Corpn Ltd.$ AAA 1.69 Standard Chartered Bank AAA 0.99 TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 1188..7700((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))Other Current Assets (Including Reverse Repos’ / CBLO) 9.66 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 1111,,333322..2266


^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #CRISIL Balanced Fund Index

^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #CRISIL MIP Blended Index

HDFC Long Term Advantage Fund*An open-ended equity linked savings scheme with a lock-in period of 3 years

HDFCTaxSaverAn open-ended equity linked savings scheme with a lock-in period of 3 years



NAV (as at Septermber 29, 2006) NAV per Unit (Rs.)



^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns#SENSEX ~ Due to an overall sharp rise in stock prices

Mar 31, 06 Last 182 days 86.035 -1.04* 10.41*Sep 29, 05 Last 1 Year (365 days) 66.957 27.15* 43.98*Sep 29, 03 Last 3 Years (1096 days) 22.510 55.74**~ 41.39**Sep 28, 01 Last 5 Years (1827 days) 8.574 58.19**~ 34.63**Jan 02, 01 Since Inception (2096 days) 10.000 45.20** 21.77**





EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDReliance Industries Ltd. Petroleum Products 4.65 Maharashtra Seamless Ltd. Ferrous Metals 4.47 Goodlass Nerolac Paints Ltd. Consumer Non Durables 4.44 State Bank of India Banks 4.08 Container Corporation of India Ltd. Transportation 3.83 Great Eastern Shipping Company Ltd. Transportation 3.37 Hindustan Lever Ltd. Consumer Non Durables 3.31 Monsanto Chemicals of India Ltd. Pesticides 3.29 Blue Star Ltd. Consumer Durables 3.21 Tata Motors Ltd. Auto 3.07 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 3377..7722TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9944..7766Other Current Assets (Including Reverse Repos’ / CBLO) 5.24 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 5500,,445511..5588

DDaattee PPeerriioodd NNAAVV RReettuurrnnss BBeenncchhmmaarrkkppeerr UUnniitt ((RRss..)) ((%%))$$$$^̂ RReettuurrnnss ((%%))##


^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns #S&P CNX 500 (Please refer to page no 31)** Compounded Annualised Returns ~Due to an overall sharp rise in stock prices$$ Adjusted for the dividends declared under the scheme prior to its splittng into theDividend and Growth Plans

Mar 31, 06 Last 182 days 131.223 0.35* 2.68*Sep 29, 05 Last 1 Year (365 days) 99.287 32.62* 30.96*Sep 29, 03 Last 3 Years (1096 days) 30.454 62.84**~ 38.39**Sep 28, 01 Last 5 Years (1827 days) 14.420 55.56**~ 38.58**Sep 27, 96 Last 10 Years (3654 days) 8.340 44.49** 16.77**Mar 31, 96 Since Inception (3834 days) 10.000 39.58** 14.82**






* Previously HDFC Tax Plan 2000

Consumer Non Durables 21.21Auto Ancillaries 10.43Industrial Products 8.89Transportation 7.20Industrial Capital Goods 5.66Petroleum Products 5.32Auto 4.61Software 4.54Ferrous Metals 4.47Banks 4.08Pesticides 3.29

Consumer Durables 3.21Engineering 2.29Textiles - Synthetic 1.85Telecom - Services 1.72Pharmaceuticals 1.60Gas 1.51Diamond 1.15HealthCare Services 0.72Oil 0.62Finance 0.39


Industrial Capital Goods 16.47Consumer Non Durables 13.16Auto 11.07Software 10.42Pharmaceuticals 7.16Non - Ferrous Metals 7.12Auto Ancillaries 5.62Cement 5.21Pesticides 4.40

Telecom - Services 3.90Textile Products 3.85Paper 2.77Textiles - Synthetic 2.27Industrial Products 2.25Ferrous Metals 1.62Construction 1.30Oil 0.73



EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDMaruti Udyog Ltd. Auto 5.87 ITC Ltd. Consumer Non Durables 5.61 Infosys Technologies Ltd. Software 5.53 Crompton Greaves Ltd. Industrial Capital Goods 5.40 Tata Motors Ltd. Auto 5.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 4.98 Hindustan Lever Ltd. Consumer Non Durables 4.91 Satyam Computer Services Ltd. Software 4.89 Thermax Ltd. Industrial Capital Goods 4.88 Bharti Airtel Ltd. Telecom - Services 3.90 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 5500..9988TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 9999..3322Other Current Assets (Including Reverse Repos’ / CBLO) 0.68 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 6600,,221122..8800

IN EQUITY - TAX PLANNING CATEGORY(19 schemes) for 3 and 5 year


IN EQUITY - TAX PLANNING CATEGORY(19 schemes) for 3 and 5 year








Benefits of Systematic Investment Plan (SIP)

# SENSEXPast performance may or may not be sustained in the future.

SSIIPP IInnvveessttmmeennttss SSiinnccee IInncceeppttiioonn 55 YYeeaarr SSIIPP 33 YYeeaarr SSIIPP 11 YYeeaarr SSIIPP

Total Amount Invested (Rs. ‘000) 73.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 258.90 190.51 66.71 14.50RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 4422..1144 4488..2255 4444..6611 4411..2266Benchmark Returns (Annualised) (%) # 3333..3333 4400..9922 4433..7744 4477..2288

HDFC GROWTH FUND

# BSE 200Past performance may or may not be sustained in the future.

SSIIPP IInnvveessttmmeennttss SSiinnccee IInncceeppttiioonn 11 YYeeaarr SSIIPP

Total Amount Invested (Rs.) 25,000.00 12,000.00Market Value as September 29, 2006, (Rs.) 39,343.42 14,352.00RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 4488..5588 3322..5577Benchmark Returns (Annualised) (%) # 4411..4477 3388..6666

HDFC CORE & SATELLITE FUND

# S&P CNX 500 (Please refer to page no 31)Past performance may or may not be sustained in the future.

SSIIPP IInnvveessttmmeennttss SSiinnccee 1100 yyeeaarr 55 YYeeaarr 33 YYeeaarr 11 YYeeaarrIInncceeppttiioonn SSIIPP SSIIPP SSIIPP SSIIPP

Total Amount Invested (Rs. ‘000) 141.00 120.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 1,379.38 1,020.89 218.28 70.99 13.81RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 3355..5500 4400..2222 5544..4411 4499..6644 2299..4477Benchmark Returns (Annualised) (%) # 1199..3333 2222..4444 3399..6666 3377..1155 3322..7733

HDFC EQUITY FUND

# BSE 200Past performance may or may not be sustained in the future.



HDFC TOP 200 FUND

# S&P CNX 500 (Please refer to page no 31)Past performance may or may not be sustained in the future.


Total Amount Invested (Rs. ‘000) 152.00 120.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 778.05 578.72 191.68 63.74 12.92RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 2233..5588 2299..6622 4488..5533 4400..9999 1144..6677Benchmark Returns (Annualised) (%) # 1177..6677 2222..4444 3399..6666 3377..1155 3322..7733

HDFC CAPITAL BUILDER FUND

# S&P CNX 500Past performance may or may not be sustained in the future.


Total Amount Invested (Rs.) 18,000.00 12,000.00 Market Value as September 29, 2006, (Rs.) 22,805.75 14,343.07RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 3333..8866 2255..4411Benchmark Returns (Annualised) (%) # 3311..1111 1188..3333

HDFC PREMIER MULTI CAP FUND

# CRISIL MIP BLENDED INDEXPast performance may or may not be sustained in the future.



HDFC MIP - SHORT TERM PLAN

# CRISIL MIP BLENDED INDEXPast performance may or may not be sustained in the future.



HDFC MIP - LONG TERM PLAN

# CRISIL Balanced Fund IndexPast performance may or may not be sustained in the future.


Total Amount Invested (Rs. ‘000) 73.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 164.41 123.80 54.00 13.63RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 2266..6666 2299..5500 2288..2288 2266..3355Benchmark Returns (Annualised) (%) # NN..AA.. NN..AA.. 2233..7744 2255..0000

HDFC BALANCED FUND



Total Amount Invested (Rs. ‘000) 152.00 120.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 1,059.74 671.32 171.24 63.12 14.19RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 2277..8866 3322..3377 4433..5511 4400..2233 3355..8833Benchmark Returns (Annualised) (%) # NN..AA.. NN..AA.. NN..AA.. 2233..8822 2255..9988

HDFC PRUDENCE FUND




HDFC CHILDREN’S GIFT FUND - INVESTMENT PLAN

# CRISIL MIP Blended IndexPast performance may or may not be sustained in the future.



HDFC CHILDREN’S GIFT FUND - SAVINGS PLAN

# SENSEXPast performance may or may not be sustained in the future.



HDFC LONG TERM ADVANTAGE FUND

# S&P CNX 500 (Please refer to page no 31Past performance may or may not be sustained in the future.


Total Amount Invested (Rs. ‘000) 123.00 120.00 60.00 36.00 12.00Mkt Value as on September 29, 2006 (Rs. ‘000) 1,485.74 1,380.35 245.44 78.37 13.75RReettuurrnnss ((AAnnnnuuaalliisseedd))** ((%%)) 4455..5522 4455..9955 5599..8822 5577..8877 2288..3377Benchmark Returns (Annualised) (%) # 2211..9955 2222..4444 3399..6666 3377..1155 3322..7733

HDFC TAXSAVER

* Load is not taken into consideration and the Returns are of Growth Plan. Investors are advisedto refer to the Relative Performance table furnished on previous pages for non-SIP returns. PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree..DDiissccllaaiimmeerr:: The above investment simulation is for illustrative purposes only and should not beconstrued as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund isnot guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guaran-tee protection against a loss in a declining market.Please refer SIP Enrolment Form or contact nearest ISC for SIP Load Structure.

The Terms & Conditions of the SIP facility have been revamped effective September 1, 2004 and January 3, 2005 and it is now more flexible and convenient for investors. To illustrate the advantages of SIP investments, this is how your investments would have grown if you had invested say Rs. 1,000systematically on the first Business Day of every month over a period of time.


EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDInfosys Technologies Ltd. Software 0.99 Satyam Computer Services Ltd. Software 0.99 United Phosphorus Ltd. Pesticides 0.98 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.96 Maruti Udyog Ltd. Auto 0.95 Hindustan Lever Ltd. Consumer Non Durables 0.93 ITC Ltd. Consumer Non Durables 0.91 Bharti Airtel Ltd. Telecom - Services 0.85 Tata Motors Ltd. Auto 0.83 Godawari Power & Ispat Ltd. Power 0.80 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 99..1199TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 1144..6666DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttState Bank of India AAA 7.00 IDBI Bank Ltd. AA+ 6.89 Housing Dev. Finance Corpn Ltd.$ AAA 5.40 UCO Bank P1+ 4.97 Associated Cement Companies Ltd. AA+ 4.07 Indian Petrochemicals Corp. Ltd. AAA 4.06 National Thermal Power Corporation AAA 4.02 Reliance Industries Ltd. AAA 3.94 Citi Financial Consumer Fin.(I) Ltd AAA 3.91 State Bank of Patiala P1+ 3.79 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 4488..0055((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8800..6688Other Current Assets (Including Reverse Repos’ / CBLO) 4.66 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 3377,,333300..7711




EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDInfosys Technologies Ltd. Software 2.41 Bank of Baroda Banks 2.25 Crompton Greaves Ltd. Industrial Capital Goods 1.80 Container Corporation of India Ltd. Transportation 1.69 Amtek Auto Ltd. Auto Ancillaries 1.65 ITC Ltd. Consumer Non Durables 1.41 Siemens Ltd. Industrial Capital Goods 1.34 Exide Industries Ltd. Auto Ancillaries 0.96 The Federal Bank Ltd. Banks 0.95 Eveready Industries India Ltd. Consumer Non Durables 0.92 TToottaall ooff TToopp TTeenn EEqquuiittyy HHoollddiinnggss 1155..3388TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 2222..3322DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieessICICI Bank Ltd. P1+ 6.45 BHPC Auto Loan Securitisation Trust - Tata Motors Ltd. AAA(SO) 4.96 Citicorp Finance (India) Ltd. AAA 3.50 Standard Chartered Bank P1+ 2.92 National Housing Bank A1+ 2.89 Loan Securitisation Trust - Reliance Industries Ltd. AAA(SO) 2.85 Government Securities SOV 2.72 Export - Import Bank of India AAA 2.55 State Bank of India AAA/P1+ 2.55 LIC Housing Finance Ltd. AAA 2.50 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 3333..8899((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 6644..8811Other Current Assets (Including Reverse Repos’ / CBLO) 12.87 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 9999,,888888..7733



+ Industry Classification as recommended by AMFI, $ Sponsor, ✤ PPaasstt ppeerrffoorrmmaannccee iiss nnoo gguuaarraanntteeee ooff ffuuttuurree rreessuullttss..

Please refer to page no 31 for details on the Rating Methodology

AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 11..1133 yyeeaarrss ((ootthheerr tthhaann eeqquuiittyy iinnvveessttmmeennttss))

+ Industry Classification as recommended by AMFI, $ Sponsor,

AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 11..5555 yyeeaarrss ((ootthheerr tthhaann eeqquuiittyy iinnvveessttmmeennttss))

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #Crisil MIP Blended Index

NNAAVV (as at September 29, 2006) NAV per Unit (Rs.) Growth Option 12.6022Monthly Dividend Option 10.3240Quarterly Dividend Option 10.5355


Mar 31, 06 Last 182 days 12.4284 1.40* 3.52*Sep 29, 05 Last 1 Year (365 days) 11.9690 5.29* 8.32*Dec 26, 03 Since Inception (1008 days) 10.0000 8.74** 6.54**

Relative Performance^(Growth Option)

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #Crisil MIP Blended Index


Mar 31, 06 Last 182 days 13.6125 4.30* 3.52*Sep 29, 05 Last 1 Year (365 days) 12.5218 13.39* 8.32*Dec 26, 03 Since Inception (1008 days) 10.0000 13.53** 6.54**


NNAAVV (as at September 29, 2006) NAV per Unit (Rs.) Growth Option 14.1985Monthly Dividend Option 11.4884Quarterly Dividend Option 11.6393

HDFC MF MIP - Short Term Plan


HDFC MF MIP - Long Term Plan


HYBRID - MONTHLY INCOME(37 schemes) for 3 & 5 year periods

ending September 30, 2006


NNAAVV (as at September 29, 2006) NAV per Unit (Rs.)


HDFC Multiple Yield FundAn open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree*Absolute Returns # Crisil MIP Blended Index** Compounded Annualised Returns

+ Industry Classification as recommended by AMFI + Industry Classification as recommended by AMFI



Mar 31, 06 Last 182 days 11.5899 2.50* 3.52*Sep 29, 05 Last 1 Year (365 days) 11.0269 7.73* 8.32*Sep 17, 04 Since Inception (742 days) 10.0000 8.84** 9.32**



HDFC Multiple Yield Fund - Plan 2005An open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns # Crisil MIP Blended Index** Compounded Annualised Returns



Mar 31, 06 Last 182 days 10.549 2.37* 3.52*Sep 29, 05 Last 1 Year (365 days) 10.209 5.78* 8.32*Aug 17, 05 Since Inception (408 days) 10.000 7.12** 9.16**


EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDGlaxoSmithkline Consumer Healthcare Consumer Non Durables 1.42 Nestle India Ltd. Consumer Non Durables 0.85 TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 22..2277DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeennttKotak Mahindra Bank Ltd. P1+ 11.20 ABN AMRO Bank P1+ 9.96 IDBI Bank Ltd. P1+ 9.96 Citicorp Finance (India) Ltd. P1+ 9.92 Hongkong & Shanghai Bank Ltd. F1+ 8.48 UBL Trust-Standard Chartered Inv & Loans (India) Ltd. AA(SO) 7.94 UCO Bank P1+ 7.47 American Express Bank A1+ 7.47 Mahindra and Mahindra Fin. Ser Ltd. AA+ 3.96 ICICI Bank Ltd. P1+ 3.94 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8800..3300((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8877..3311Other Current Assets (Including Reverse Repos’ / CBLO) 10.42 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 3377,,776655..6633


AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 3333 ddaayyss


EEQQUUIITTYY && EEQQUUIITTYY RREELLAATTEEDDUnited Phosphorus Ltd. Pesticides 1.53 State Bank of India Banks 1.45 ITC Ltd. Consumer Non Durables 1.32 Nestle India Ltd. Consumer Non Durables 1.23 Maruti Udyog Ltd. Auto 0.97 HOV Services Ltd. IT Consulting & Services 0.43 Multi Arc India Ltd. Industrial Products 0.33 Voltamp Transformers Ltd Power 0.22 TToottaall EEqquuiittyy && EEqquuiittyy RReellaatteedd HHoollddiinnggss 77..4488DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieessCiticorp Finance (India) Ltd. AAA 13.55 Kotak Mahindra Primus Ltd. AA+ 11.24 IDBI Bank Ltd. AA+ 8.60 LIC Housing Finance Ltd. AAA 8.58 GE Capital Services India AAA 7.40 ICICI Bank Ltd. P1+ 7.34 UCO Bank P1+ 4.92 Rabo India Finance Private Ltd. P1+ 4.85 Government Securities SOV 4.82 Citi Financial Consumer Fin.(I) Ltd AAA 3.69 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 7744..9999((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 8833..5555Other Current Assets (Including Reverse Repos’ / CBLO) 8.97 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 4400,,552299..9911






NNAAVV (as at September 29, 2006) NAV per Unit (Rs.)Growth Plan 24.3323Quarterly Dividend Plan 10.4941Half-Yearly Dividend Plan 10.2207Yearly Dividend Plan 10.9062

HDFC Income FundAn open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns# Crisil Composite Bond Fund Index

$ Sponsor


Mar 31, 06 Last 182 days 16.1167 2.50* 2.75*Sep 29, 05 Last 1 Year (365 days) 16.1447 2.32* 3.31*Sep 29, 03 Last 3 Years (1096 days) 15.4049 2.35** 2.84**Sep 28, 01 Last 5 Years (1827 days) 11.6670 7.19** .NASep 11, 00 Since Inception (2209 days) 10.0000 8.65** .NA


AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 33..3399 yyeeaarrss

HDFC High Interest FundAn open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #CRISIL Composite Bond Fund Index


Mar 31, 06 Last 182 days 23.6725 2.79* 2.75*Sep 29, 05 Last 1 Year (365 days) 23.6915 2.70* 3.31*Sep 29, 03 Last 3 Years (1096 days) 22.5809 2.52** 2.84**Sep 28, 01 Last 5 Years (1827 days) 17.2600 7.10** .NAApr 28, 97 Since Inception (3441 days) 10.0000 9.89** .NA



Government Securities 5.37

Debentures 82.72

Money Market Instruments 14.18

Deposits / Net Receivables (2.27)

Portfolio Classification by Asset Class (%)

Sovereign Securities (SOV) 5.37

AAA / AAA(SO) / P1+ Rated Securities 58.04

AA+ / LAA Rated Securities 34.55

CBLO 4.31

Deposits / Net Receivables (2.27)

Portfolio Classification by Rating Class (%)

IIssssuueerr RRaattiinngg %% ttoo NNAAVV

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSS // GGOOVVEERRNNMMEENNTT SSEECCUURRIITTIIEESSGovernment Securities SOV 15.54 Loan Securitisation Trust - Grasim Industries Ltd. AAA(SO) 15.10 Indian Oil Corporation Ltd. AAA 8.79 State Bank of India AAA 7.67 JUS Trust - Jet Airways AAA(SO) 7.03 Loan Securitisation Trust - Bajaj Auto Ltd. AAA(SO) 6.98 IDBI Bank Ltd. AA+ 5.35 Housing Dev. Finance Corpn Ltd.$ AAA 4.22 Grasim Industries Ltd. AAA 3.68 Sundaram Finance Ltd. AA+ 3.67 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 7788..0033((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 8822..4477Other Current Assets (Including Reverse Repos’ / CBLO) 17.53 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 2277,,224477..8877

Portfolio – Top 10 Holdings (as at September 30, 2006)IIssssuueerr RRaattiinngg %% ttoo NNAAVV

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSS // GGOOVVEERRNNMMEENNTT SSEECCUURRIITTIIEESSLoan Securitisation Trust - Grasim Industries Ltd. AAA(SO) 17.64 IDBI Bank Ltd. AA+ 10.87 JUS Trust - Jet Airways AAA(SO) 10.28 Mahindra and Mahindra Fin. Ser Ltd. AA+ 10.26 Citi Financial Consumer Fin.(I) Ltd AAA 10.24 Hindalco Industries Ltd. AAA 10.01 Jammu & Kashmir Bank Ltd. P1+ 9.87 Associated Cement Companies Ltd. AA+ 8.48 Government Securities SOV 5.36 Kotak Mahindra Primus Ltd. LAA 4.94 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 9977..9955((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt // GGoovveerrnnmmeenntt SSeeccuurriittiieess 9977..9955Other Current Assets (Including Reverse Repos’ / CBLO) 2.05 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 44,,774499..3399




Growth Option 13.0029Dividend Reinvestment Option 10.3521



HDFC Short Term PlanAn open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns # Crisil Liquid Fund Index


Mar 31, 06 Last 182 days 12.5715 3.43* 3.03*Sep 29, 05 Last 1 Year (365 days) 12.2888 5.81* 5.58*Sep 29, 03 Last 3 Years (1096 days) 11.2813 4.84** 4.70**Feb 28, 02 Since Inception (1674 days) 10.0000 5.89** .NA


HDFC High Interest Fund - Short TermPlanAn open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns# Crisil Composite Bond Fund Index




AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 222277 ddaayyss AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 11..1122 yyeeaarrss


DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSLoan Securitisation Trust - Reliance Industries Ltd. AAA(SO) 10.99 DSP Merrill Lynch Capital Ltd. P1+ 10.34 Sundaram Finance Ltd. AA+ 10.34 Citicorp Maruti Finance Ltd. AAA 10.31 Global Trade Finance Ltd. P1+ 10.16 State Bank Of Hyderabad A1+ 9.75 BHPC Auto Loan Securitisation Trust - Tata Motors Ltd. AAA(SO) 8.39 Citi Financial Consumer Fin.(I) Ltd AAA 8.05 Export - Import Bank of India AAA 6.23 TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8844..5566((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))Other Current Assets (Including Reverse Repos’ / CBLO) 15.44 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 44,,883377..8877

Portfolio – Top Holdings (as at September 30, 2006)IIssssuueerr RRaattiinngg %% ttoo NNAAVV

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSState Bank of Mysore A1+/P1+ 12.61 State Bank Of Hyderabad A1+ 7.52 Housing Dev. Finance Corpn Ltd.$ AAA 5.33 Indian Corp. Loan Sec.Trust-Yes Bank Ltd. AA(SO) 5.32 BHW Birla Home Finance Ltd. LAA 5.31 Kotak Mahindra Primus Ltd. LAA 5.31 Industrial Dev. Bank of India Ltd. P1+ 5.31 SBI Cards & Payment Services P. Ltd P1+ 4.99 The Federal Bank Ltd. P1+ 4.98 Corporation Bank P1+ 4.95 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 6611..6633((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 7788..3344Other Current Assets (Including Reverse Repos’ / CBLO) 21.66 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 99,,440088..9944

$ Sponsor

An open-ended income scheme

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #I-Sec Si-Bex


Mar 31, 06 Last 182 days 13.0469 2.49* 3.47*Sep 29, 05 Last 1 Year (365 days) 12.8282 4.23* 6.18*Sep 29, 03 Last 3 Years (1096 days) 12.0085 3.65** 4.95**Sep 28, 01 Last 5 Years (1827 days) 10.3250 5.30** .NAJul 25, 01 Since Inception (1892 days) 10.0000 5.76** .NA


HDFC Gilt Fund

Short Term Plan

^̂PPaasstt PPeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #I-Sec Li-Bex


Mar 31, 06 Last 182 days 15.2302 1.42* 2.96*Sep 29, 05 Last 1 Year (365 days) 15.0913 2.35* 4.22*Sep 29, 03 Last 3 Years (1096 days) 14.9063 1.19** 2.91**Sep 28, 01 Last 5 Years (1827 days) 10.2280 8.58** .NAJul 25, 01 Since Inception (1892 days) 10.0000 8.75** .NA


Long Term Plan

AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 112255 ddaayyss AAvveerraaggee PPoorrttffoolliioo MMaattuurriittyy 33..1166 yyeeaarrss


GGoovveerrnnmmeenntt SSeeccuurriitteess // TTrreeaassuurryy BBiillllss182 Days T-Bills SOV 57.36 12.25% GOI 2008 SOV 12.94 11.40% GOI 2008 SOV 0.09 TToottaall GGoovveerrnnmmeenntt SSeeccuurriitteess // TTrreeaassuurryy BBiillllss 7700..3399Other Current Assets (Including Reverse Repos’ / CBLO) 29.61 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 11,,118855..1144


GGoovveerrnnmmeenntt SSeeccuurriittiieess // TTrreeaassuurryy BBiillllss182 Days T-Bills SOV 27.27 7.59% GOI 2016 SOV 25.17 7.40% GOI 2012 SOV 12.59 TToottaall GGoovveerrnnmmeenntt SSeeccuurriitteess // TTrreeaassuurryy BBiillllss 6655..0033Other Current Assets (Including Reverse Repos’ / CBLO) 34.97 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 33,,996600..1155








^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #Crisil Liquid Fund Index


Mar 31, 06 Last 182 days 11.7567 3.26* 3.03*Sep 29, 05 Last 1 Year (365 days) 11.4327 6.18* 5.58*Sep 29, 03 Last 3 Years (1096 days) 10.3768 5.36** 4.70**Jan 16, 03 Since Inception (1352 days) 10.0101 5.35** 4.70**





$ Sponsor

Short Term Plan (Classified as Liquid Scheme)

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSIDBI Bank Ltd. AA+ 7.49 Indian Retail ABS Trust - ICICI Bank Ltd. AAA(SO)/LAAA(SO) 7.07 BHPC Auto Loan Securitisation Trust - Tata Motors Ltd. AA+(SO)/AAA(SO) 4.75 Citicorp Finance (India) Ltd. AAA 4.59 Punjab National Bank F1+ 4.52 ICICI Bank Ltd. P1+ 4.29 Rabo India Finance Private Ltd. P1+ 3.08 The Federal Bank Ltd. P1+ 3.01 State Bank of Patiala P1+ 3.01 Citi Financial Consumer Fin.(I) Ltd AAA 2.75 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 4444..5566((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8866..4499Other Current Assets (Including Reverse Repos’ / CBLO) 13.51 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 110099,,118811..9999


DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSHousing Dev. Finance Corpn Ltd.$ AAA 15.05 Citi Financial Consumer Fin.(I) Ltd AAA 14.96 Citicorp Finance (India) Ltd. AAA 12.47 BHPC Auto Loan Securitisation Trust - Tata Motors Ltd. AAA(SO) 10.51 IDBI Bank Ltd. AA+ 10.30 National Housing Bank AAA 10.06 Indian Railways Finance Corp. Ltd. AAA 5.00 Infrastructure Dev. Fin. Corp. Ltd. AAA 4.99 Fleet Trust - Citicorp Finance (Ind) Ltd. AAA(SO) 3.90 IGHCC Loan Trust-GE Capital Ser.Ind.Ltd. AA+(SO) 2.49 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 8899..7733((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 9977..1100Other Current Assets (Including Reverse Repos’ / CBLO) 2.90 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 2200,,004466..8866






Mar 31, 06 Last 182 days 11.6341 3.16* 3.03*Sep 29, 05 Last 1 Year (365 days) 11.3396 5.84* 5.58*Sep 29, 03 Last 3 Years (1096 days) 10.3446 5.07** 4.70**Jan 16, 03 Since Inception (1352 days) 10.0104 5.02** 4.70**


Long Term Plan

HDFC Floating RateIncome Fund



NNAAVV (as at September 29, 2006) NAV per Unit (Rs.)Growth Option 12.1398Daily Dividend Reinvestment Option 10.0809Weekly Dividend Reinvestment Option 10.1430Monthly Dividend Option 10.1518

NNAAVV (as at September 29, 2006) NAV per Unit (Rs.)Growth Option 12.0018Dividend Reinvestment Option 10.1901

IN DEBT: FLOATING RATE SHORT TERM(19 schemes) for 18 month period


IN DEBT: FLOATING RATE LONG TERM(14 schemes) for 18 month period




LLiiqquuiidd FFuunnddMar 31, 06 Last 182 days 13.8809 3.21* 3.03*Sep 29, 05 Last 1 Year (365 days) 13.5069 6.06* 5.58*Sep 29, 03 Last 3 Years (1096 days) 12.3209 5.15** 4.70**Sep 28, 01 Last 5 Years (1827 days) 10.8644 5.68** .NAOct 17, 00 Since Inception (2173 days) 10.0000 6.22** .NALLiiqquuiidd FFuunndd - PPrreemmiiuumm PPllaannMar 31, 06 Last 182 days 13.9564 3.28* 3.03*Sep 29, 05 Last 1 Year (365 days) 13.5702 6.22* 5.58*Sep 29, 03 Last 3 Years (1096 days) 12.3393 5.31** 4.70**Feb 24, 03 Since Inception (1313 days) 11.9684 5.30** 4.71**LLiiqquuiidd FFuunndd - PPrreemmiiuumm PPlluuss PPllaannMar 31, 06 Last 182 days 13.9851 3.28* 3.03*Sep 29, 05 Last 1 Year (365 days) 13.5965 6.24* 5.58*Sep 29, 03 Last 3 Years (1096 days) 12.3458 5.37** 4.70**Feb 24, 03 Since Inception (1313 days) 11.9684 5.37** 4.71**


^Past pperformance may or may not be sustained in the future* Absolute Returns ** Compounded Annualised Returns # Crisil Liquid Fund Index

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSIndian Retail ABS Trust - ICICI Bank Ltd. AAA(SO)/LAAA(SO) 9.68 ICICI Bank Ltd. P1+ 4.82 State Bank of Mysore A1+/P1+ 4.39 ING Vysya Bank Ltd. P1+ 4.35 Indian Corp. Loan Sec.Trust-Yes Bank Ltd. F1+(SO)/P1+(SO)/PR1+(SO) 3.87 United Phosphorus Ltd. PR1+/UNRATED 3.57 Ballarpur Industries Ltd. F1+ 3.53 Rabo India Finance Private Ltd. AAA/P1+ 3.49 State Bank of India P1+ 3.21 State Bank of Saurashtra P1+ 2.91 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 4433..8822((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 9933..9977Other Current Assets (Including Reverse Repos’ / CBLO) 6.03 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 119955,,112200..7755


HDFC Liquid FundAn open-ended liquid income scheme

HDFC Cash ManagementFund

An open-ended high liquidity income scheme

IN DEBT: ULTRA SHORT-TERM CATEGORY(35 schemes) for 18 month period




IN DEBT: ULTRA SHORT-TERM CATEGORY(35 schemes) for 18 month period



Savings Plan

DDaattee PPeerriioodd NNAAVV RReettuurrnnss BBeenncchhmmaarrkkppeerr UUnniitt ((RRss..)) ((%%))^̂$$$$ RReettuurrnnss ((%%))##


Mar 31, 06 Last 182 days 14.5630 3.30* 3.03*Sep 29, 05 Last 1 Year (365 days) 14.1583 6.25* 5.58*Sep 29, 03 Last 3 Years (1096 days) 12.8580 5.37** 4.70**Sep 28, 01 Last 5 Years (1827 days) 11.2972 5.88** .NANov 18, 99 Since Inception (2507 days) 10.0000 6.18** .NA

^̂PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree* Absolute Returns ** Compounded Annualised Returns #Crisil Liquid Fund Index$$ Adjusted for the dividends declared under the scheme prior to its splitting into theDividend and Growth Plans


Growth Option 15.0439Daily Dividend Reinvestment Option 10.6364Weekly Dividend Reinvestment Option 10.6389

NNAAVV (as at September 29, 2006) NAV per Unit (Rs.)HHDDFFCC LLiiqquuiidd FFuunnddGrowth Option 14.3260Daily Dividend Reinvestment Option 10.1982Weekly Dividend Option 10.3182Monthly Dividend Option 10.2708HHDDFFCC LLiiqquuiidd FFuunndd - PPrreemmiiuumm PPllaannGrowth Option 14.4136Daily Dividend Reinvestment Option 12.2598Weekly Dividend Option 12.4856HHDDFFCC LLiiqquuiidd FFuunndd - PPrreemmiiuumm PPlluuss PPllaannGrowth Option 14.4445Weekly Dividend Option 12.4272

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSIndian Retail ABS Trust - ICICI Bank Ltd. A1+(SO)/AAA(SO)/LAAA(SO) 5.66 State Bank of Indore P1+ 5.01 UTI Bank Ltd. /P1+ 4.91 ICICI Bank Ltd. A1+/P1+ 3.75 Citicorp Finance (India) Ltd. AAA/P1+ 3.35 Union Bank of India P1+ 2.75 The Federal Bank Ltd. P1+ 2.38 HDFC Bank Ltd. 2.31 Sundaram Finance Ltd. A1+/AA+/P1+ 1.93 ABN AMRO Bank P1+ 1.91 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 3333..9966((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 7788..9988Other Current Assets (Including Reverse Repos’ / CBLO) 21.02 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 337777,,994400..3366



DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSIndian Retail ABS Trust - ICICI Bank Ltd. AAA(SO)/LAAA(SO) 7.54 Sundaram Finance Ltd. AA+ 6.35 Citicorp Finance (India) Ltd. AAA 4.78 Rabo India Finance Private Ltd. P1+ 4.62 Industrial Dev. Bank of India Ltd. P1+ 4.44 The Federal Bank Ltd. P1+ 4.43 National Housing Bank A1+ 3.68 ICICI Bank Ltd. P1+ 3.67 State Bank Of Hyderabad A1+ 3.61 BHPC Auto Loan Securitisation Trust - Tata Motors Ltd. AAA(SO) 3.11 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 4466..2233((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 9911..4422Other Current Assets (Including Reverse Repos’ / CBLO) 8.58 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 5522,,226699..9900






Call Plan


Note for All Open-EEnded Schemes (as at September 30, 2006)i) Total NPAs provided for and its percentage to NAV : Nilii) Total outstanding exposure in derivative instruments (Notional) :

a) Equity :HDFC Equity Fund Rs. 166.12 lacsTop 200 Fund Rs. 1,741.43 lacs

Total Rs. 1.907.55 lacs



Savings Plus Plan


$ Sponsor

An open-ended income scheme An open-ended high liquidity income scheme


Mar 31, 06 Last 182 days 15.1474 3.26* 3.03*Sep 29, 05 Last 1 Year (365 days) 14.7523 6.03* 5.58*Sep 29, 03 Last 3 Years (1096 days) 13.4679 5.11** 4.70**Sep 28, 01 Last 5 Years (1827 days) 11.8324 5.73** .NANov 18, 99 Since Inception (2507 days) 10.0000 6.73** .NA

^Past perrforrmmannce mmay orr mmay nnot be sustainned inn the futurre* Absolute Returns ** Compounded Annualised Returns #Crisil Liquid Fund Index







Growth Option 12.4428Dividend Reinvestment Option 10.4266

DDEEBBTT // MMOONNEEYY MMAARRKKEETT IINNSSTTRRUUMMEENNTTSSABN Amro Securities (India) Pvt. Lt A1+ 6.65 Dr Reddys Laboratories Ltd. P1+ 6.65 Madras Cements Ltd. A1+ 6.65 Raymond Ltd. PR1+ 6.65 SBI Factors & Commrl Ser Pvt Ltd A1+ 6.65 Sundaram Finance Ltd. AA+ 6.65 UCO Bank P1+ 6.63 CMC Ltd A1+ 6.53 Kotak Mahindra Primus Ltd. P1+ 3.99 United Phosphorus Ltd. PR1+ 1.31 TToottaall ooff TToopp TTeenn DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 5588..3366((aaggggrreeggaatteedd hhoollddiinnggss iinn aa ssiinnggllee iissssuueerr))TToottaall DDeebbtt // MMoonneeyy MMaarrkkeett IInnssttrruummeenntt 6600..0099Other Current Assets (Including Reverse Repos’ / CBLO) 39.91 GGrraanndd TToottaall 110000..0000NNeett AAsssseettss ((RRss.. IInn LLaakkhhss)) 77,,552222..9955

Apr 03, 06 10.5261 0.0396 0.0369

May 02, 06 10.5968 0.0488 0.0454

Jun 01, 06 10.6016 0.0504 0.0470

Jul 03, 06 10.5934 0.0538 0.0501

Aug 01, 06 10.5894 0.0470 0.0438

Sep 01, 06 10.6038 0.0522 0.0486



Dividend Option (Last 6 months)

HDFC High Interest Fund-Short Term Plan

HDFC High Interest Fund (Since March 2005)

Dividend History ^

^̂ PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree.. All dividends are on face value of Rs.10 per Unit. After payment of the dividend, the per Unit NAV will fall to the extent of the payout and distribution tax (if applicable).

Dec 26, 05 10.5123 0.1000 0.0931

Sep 26, 06 10.6598 0.1500 0.1397

Sep 23, 05 10.5543 0.2400 0.2235

Sep 26, 06 10.5576 0.3000 0.2794



Quarterly (Dividend Option) Half-yearly (Dividend Option)

Yearly (Dividend Option)

Dec 26, 05 10.2396 0.1000 0.0931Sep 26, 06 10.3248 0.1000 0.0931

RReeccoorrdd DDaattee CCuumm DDiivviiddeenndd NNAAVV ((RRss..)) DDiivviiddeenndd PPeerr uunniitt ((RRee..)) FFoorr IInnddiivviidduuaallss && HHUUFF OOtthheerrss

Dividend Option (Since June 2005)

Mar 24, 05 10.9273 0.5000 0.4676

RReeccoorrdd DDaattee CCuumm DDiivviiddeenndd NNAAVV ((RRss..)) DDiivviiddeenndd PPeerr uunniitt ((RRee..)) FFoorr IInnddiivviidduuaallss && HHUUFF OOtthheerrss

HDFC Income Fund

Apr 03, 06 10.1161 0.0089 0.0082

Apr 10, 06 10.1177 0.0089 0.0082

Apr 17, 06 10.1192 0.0089 0.0082

Apr 24, 06 10.1209 0.0089 0.0082

May 02, 06 10.1245 0.0101 0.0094

May 08, 06 10.1233 0.0075 0.0070

May 15, 06 10.1269 0.0089 0.0082

May 22, 06 10.1290 0.0089 0.0082

May 29, 06 10.1314 0.0089 0.0082

Jun 05, 06 10.1338 0.0089 0.0082

Jun 12, 06 10.1359 0.0089 0.0082

Jun 19, 06 10.1384 0.0089 0.0082

Jun 26, 06 10.1408 0.0108 0.0100

Jul 03, 06 10.1410 0.0099 0.0092

Jul 10, 06 10.1421 0.0104 0.0097

Jul 17, 06 10.1427 0.0107 0.0100

Jul 24, 06 10.1431 0.0105 0.0098

Jul 31, 06 10.1438 0.0102 0.0095

Aug 07, 06 10.1449 0.0102 0.0095

Aug 14, 06 10.1461 0.0095 0.0088

Aug 21, 06 10.1482 0.0112 0.0104

Aug 28, 06 10.1485 0.0115 0.0107

Sep 04, 06 10.1483 0.0113 0.0105

Sep 11, 06 10.1485 0.0115 0.0107

Sep 18, 06 10.1486 0.0116 0.0108

Sep 25, 06 10.1485 0.0115 0.0107



Short Term Plan (Weekly Dividend Reinvestment Option) (Last 6 months)


Apr 03, 06 10.1403 0.0184 0.0171

Apr 17, 06 10.1437 0.0143 0.0133

May 02, 06 10.1545 0.0153 0.0143

May 16, 06 10.1606 0.0143 0.0133

Jun 01, 06 10.1718 0.0163 0.0152

Jun 16, 06 10.1779 0.0153 0.0143

Jul 03, 06 10.1908 0.0240 0.0223

Jul 17, 06 10.1885 0.0159 0.0148

Aug 01, 06 10.1966 0.0226 0.0210

Aug 16, 06 10.1969 0.0228 0.0212

Sep 01, 06 10.1987 0.0244 0.0227

Sep 18, 06 10.2003 0.0258 0.0240

Long Term Plan (Weekly Dividend Reinvestment Option) (Last 6 months)

HDFC Gilt Fund (Since June 2005)

Dec 26, 05 10.3359 0.0750 0.0698

Sep 26, 05 10.5747 0.100 0.0931

Jun 24, 05 10.1395 0.0500 0.0466

Dec 26, 05 10.2049 0.0750 0.0698



Short Term Plan (Dividend Option) Long Term Plan (Dividend Option)

Short Term Plan (Dividend Option) (Last 6 months)

HDFC MF Monthly Income Plan (MIP)(An open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus)

Monthly (Dividend Option)


Apr 25, 06 10.6682 0.0600 0.0559

May 25, 06 10.4272 0.0600 0.0559

Jun 26, 06 10.2335 0.0600 0.0559

Jul 25, 06 10.1858 0.0600 0.0559

Aug 25, 06 10.3508 0.0600 0.0559

Sep 25, 06 10.3591 0.0600 0.0559

Quarterly (Dividend Option)

Mar 27, 06 10.9109 0.1600 0.1490

Jun 27, 06 10.5571 0.1600 0.1490

Sep 25, 06 10.7066 0.1800 0.1677

Long Term Plan (Dividend Option) (Last 6 months)

Monthly (Dividend Option)


Apr 25, 06 11.5703 0.0700 0.0652

May 25, 06 11.3386 0.0700 0.0652

Jun 26, 06 11.0694 0.0700 0.0652

Jul 25, 06 11.0831 0.0700 0.0652

Aug 25, 06 11.3523 0.0700 0.0652

Sep 25, 06 11.4829 0.0700 0.0652

Quarterly (Dividend Option)

Mar 27, 06 11.8212 0.2000 0.1863

Jun 27, 06 11.3588 0.2000 0.1863

Sep 25, 06 11.7808 0.2000 0.1863

HDFC Short Term PlanDividend Reinvestment Option (Last 6 months)



Apr 03, 06 10.3118 0.0216 0.0201

Apr 17, 06 10.3182 0.0202 0.0188

May 02, 06 10.3302 0.0216 0.0201

May 16, 06 10.3301 0.0168 0.0157

Jun 01, 06 10.3388 0.0211 0.0197

Jun 16, 06 10.3376 0.0162 0.0151

Jul 03, 06 10.3446 0.0216 0.0201

Jul 17, 06 10.3469 0.0180 0.0167

Aug 01, 06 10.3532 0.0228 0.0212

Aug 16, 06 10.3591 0.0280 0.0261

Sep 01, 06 10.3580 0.0270 0.0252

Sep 18, 06 10.3612 0.0298 0.0278


Dividend History ^


Apr 03, 06 10.0242 0.0089 0.0083Apr 10, 06 10.0253 0.0099 0.0092Apr 17, 06 10.0233 0.0081 0.0076Apr 24, 06 10.0265 0.0110 0.0102May 02, 06 10.0273 0.0117 0.0109May 08, 06 10.0238 0.0086 0.0080May 15, 06 10.0251 0.0099 0.0092May 22, 06 10.0255 0.0101 0.0094May 29, 06 10.0263 0.0108 0.0100Jun 05, 06 10.0264 0.0109 0.0102Jun 12, 06 10.0257 0.0103 0.0096Jun 19, 06 10.0262 0.0107 0.0100Jun 26, 06 10.0264 0.0109 0.0102

Jul 03, 06 10.0267 0.0111 0.0104Jul 10, 06 10.0268 0.0112 0.0105Jul 17, 06 10.0269 0.0114 0.0106Jul 24, 06 10.0268 0.0113 0.0105Jul 31, 06 10.0270 0.0114 0.0106Aug 07, 06 10.0271 0.0115 0.0107Aug 14, 06 10.0270 0.0114 0.0106Aug 21, 06 10.0269 0.0113 0.0105Aug 28, 06 10.0266 0.0110 0.0103Sep 04, 06 10.0269 0.0113 0.0105Sep 11, 06 10.0270 0.0114 0.0106Sep 18, 06 10.0267 0.0112 0.0104Sep 25, 06 10.0274 0.0118 0.0109



WWeeeekkllyy DDiivviiddeenndd RReeiinnvveessttmmeenntt OOppttiioonn

^̂ PPaasstt ppeerrffoorrmmaannccee mmaayy oorr mmaayy nnoott bbee ssuussttaaiinneedd iinn tthhee ffuuttuurree.. All dividends are on face value of Rs.10 per Unit. After payment of the dividend, the per Unit NAV will fall to the extent of the payout and distribution tax (if applicable).

Savings Plus Plan (Dividend Option) (Last 6 months)

HDFC Cash Management FundSavings Plan (Daily Dividend Reinvestment Option) (Last 6 months)

HDFC Liquid FundWeekly Dividend Reinvestment Option (Last 6 months)

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRee..)) FFoorr DDaattee NNAAVV ((RRSS..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrss



LLiiqquuiidd FFuunndd PPrreemmiiuumm PPllaann PPrreemmiiuumm PPlluuss PPllaann

Apr 03, 06 10.2658 0.0071 0.0067 Apr 03, 06 12.3800 0.0076 0.0070 Apr, 03, 06 12.3290 0.0080 0.0074

Apr 10, 06 10.2697 0.0071 0.0067 Apr 10, 06 12.3865 0.0076 0.0070 Apr, 10, 06 12.3349 0.0080 0.0074

Apr 17, 06 10.2736 0.0071 0.0067 Apr 17, 06 12.3929 0.0076 0.0070 Apr, 17, 06 12.3407 0.0080 0.0074

Apr 24, 06 10.2770 0.0071 0.0067 Apr 24, 06 12.3989 0.0076 0.0070 Apr, 24, 06 12.3462 0.0080 0.0074

May 02, 06 10.2830 0.0082 0.0076 May 02, 06 12.4077 0.0086 0.0081 May 02, 06 12.3545 0.0091 0.0085

May 08, 06 10.2842 0.0061 0.0057 May 08, 06 12.4109 0.0065 0.0060 May 08, 06 12.3571 0.0068 0.0064

May 15, 06 10.2895 0.0071 0.0067 May 15, 06 12.4186 0.0076 0.0070 May 15, 06 12.3642 0.0080 0.0074

May 22, 06 10.2937 0.0071 0.0067 May 22, 06 12.4253 0.0076 0.0070 May 22, 06 12.3704 0.0080 0.0074

May 29, 06 10.2977 0.0071 0.0067 May 29, 06 12.4320 0.0076 0.0070 May 29, 06 12.3766 0.0080 0.0074

Jun 05, 06 10.3018 0.0071 0.0067 Jun 05, 06 12.4385 0.0076 0.0070 Jun 05, 06 12.3825 0.0080 0.0074

Jun 12, 06 10.3058 0.0071 0.0067 Jun 12, 06 12.4451 0.0076 0.0070 Jun 12, 06 12.3885 0.0080 0.0074

Jun 19, 06 10.3099 0.0071 0.0067 Jun 19, 06 12.4516 0.0076 0.0070 Jun 19, 06 12.3944 0.0080 0.0074

Jun 26, 06 10.3139 0.0102 0.0095 Jun 26, 06 12.4581 0.0074 0.0097 Jun 26, 06 12.4004 0.0104 0.0097

Jul 03, 06 10.3148 0.0096 0.0089 Jul 03, 06 12.4617 0.0098 0.0091 Jul 03, 06 12.4039 0.0099 0.0092

Jul 10, 06 10.3164 0.0099 0.0092 Jul 10, 06 12.4660 0.0102 0.0095 Jul 10, 06 12.4080 0.0101 0.0094

Jul 17, 06 10.3175 0.0106 0.0099 Jul 17, 06 12.4696 0.0107 0.0100 Jul 17, 06 12.4117 0.0108 0.0100

Jul 24, 06 10.3180 0.0101 0.0094 Jul 24, 06 12.4730 0.0103 0.0096 Jul 24, 06 12.4150 0.0104 0.0096

Jul 31, 06 10.3191 0.0097 0.0090 Jul 31, 06 12.4768 0.0100 0.0093 Jul 31, 06 12.4188 0.0100 0.0093

Aug 07, 06 10.3211 0.0104 0.0097 Aug 07, 06 12.4814 0.0105 0.0098 Aug 07, 06 12.4232 0.0105 0.0098

Aug 14, 06 10.3220 0.0109 0.0101 Aug 14, 06 12.4852 0.0112 0.0104 Aug 14, 06 12.4270 0.0112 0.0104

Aug 21, 06 10.3226 0.0108 0.0100 Aug 21, 06 12.4884 0.0109 0.0102 Aug 21, 06 12.4310 0.0109 0.0102

Aug 28, 06 10.3231 0.0112 0.0104 Aug 28, 06 12.4918 0.0139 0.0130 Aug 28, 06 12.4335 0.0139 0.0130

Sep 04, 06 10.3232 0.0113 0.0105 Sep 04, 06 12.4916 0.0138 0.0128 Sep 04, 06 12.4332 0.0137 0.0127

Sep 11, 06 10.3233 0.0114 0.0106 Sep 11, 06 12.4920 0.0141 0.0132 Sep 11, 06 12.4336 0.0140 0.0131

Sep 18, 06 10.3232 0.0113 0.0105 Sep 18, 06 12.4917 0.0139 0.0129 Sep 18, 06 12.4334 0.0139 0.0129

Sep 15, 06 10.3237 0.0118 0.0109 Sep 25, 06 12.4924 0.0145 0.0135 Sep 25, 06 12.4341 0.0145 0.0135

HDFC Cash Management Fund (Call Plan)

MMoonntthh RReeccoorrdd DDaattee EExx-ddiivviiddeenndd NNAAVV ppeerr UUnniitt ((RRss..)) AAggggrreeggaattee DDiivviiddeenndd PPeerr UUnniitt ((RRee..)) ffoorr tthhee mmoonntthh IInnddiivviidduuaallss && HHUUFF OOtthheerrss

WWeeeekkllyy DDiivviiddeenndd RReeiinnvveessttmmeenntt OOppttiioonn (Last 6 months)

Apr 07, 06 10.6379 0.0115 0.0108

Apr 17, 06 10.6432 0.0162 0.0151

Apr 21, 06 10.6320 0.0064 0.0060

Apr 28, 06 10.6376 0.0113 0.0105

May 05, 06 10.6376 0.0114 0.0106

May 12, 06 10.6377 0.0114 0.0106

May 19, 06 10.6378 0.0115 0.0107

May 26, 06 10.6378 0.0115 0.0107

Jun 02, 06 10.6378 0.0115 0.0107

Jun 09, 06 10.6377 0.0114 0.0106

Jun 16, 06 10.6380 0.0117 0.0109

Jun 23, 06 10.6378 0.0115 0.0107

Jun 30, 06 10.6379 0.0116 0.0108

Jul 07, 06 10.6379 0.0116 0.0108

Jul 14, 06 10.6378 0.0115 0.0107

Jul 21, 06 10.6380 0.0116 0.0108

Jul 28, 06 10.6380 0.0117 0.0109

Aug 04, 06 10.6380 0.0117 0.0109

Aug 11, 06 10.6383 0.0120 0.0111

Aug 18, 06 10.6381 0.0118 0.0110

Aug 25, 06 10.6381 0.0117 0.0109

Sep 01, 06 10.6383 0.0119 0.0111

Sep 08, 06 10.6383 0.0119 0.0111

Sep 15, 06 10.6395 0.0129 0.0121

Sep 22, 06 10.6388 0.0123 0.0115

Sep 29, 06 10.6389 0.0125 0.0116

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRee....)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrss

RReeccoorrdd CCuumm DDiivv DDiivviiddeenndd PPeerr uunniitt ((RRee....)) FFoorr DDaattee NNAAVV ((RRss..)) IInnddiivviidduuaallss && HHUUFF OOtthheerrss

April 2006 Daily 10.6364 0.0471 0.0439

May 2006 Daily 10.6364 0.0508 0.0474

June 2006 Daily 10.6364 0.0507 0.0474

July 2006 Daily 10.6364 0.0493 0.0461

Aug 2006 Daily 10.6364 0.0523 0.0489

Sep 2006 Daily 10.6364 0.0537 0.0501

April 06 Daily 10.4266 0.0458 0.0429May 06 Daily 10.4266 0.0458 0.0428June 06 Daily 10.4266 0.0453 0.0422July 06 Daily 10.4266 0.0431 0.0401Aug 06 Daily 10.4266 0.0467 0.0436Sep 06 Daily 10.4266 0.0504 0.0465

MMoonntthh RReeccoorrdd DDaattee EExx-ddiivviiddeenndd NNAAVV ppeerr UUnniitt ((RRss..)) AAggggrreeggaattee DDiivviiddeenndd PPeerr UUnniitt ((RRee..)) ffoorr tthhee mmoonntthh IInnddiivviidduuaallss && HHUUFF OOtthheerrss

WWeeeekkllyy DDiivviiddeenndd RReeiinnvveessttmmeenntt OOppttiioonn (Last 6 months)


Methodology


Disclaimer:The information contained herein should not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or

to the media or reproduced in any form, without prior written consent of HDFC Asset Management Company Limited (HDFC AMC) or the relevant ownerof the intellectual property, as the case may be. All Intellectual property and intellectual property rights belong to the relevant owner of the intellectualproperty, and “Intouch Mutually” is a trademark of HDFC AMC.

Any information herein contained does not constitute and shall be deemed not to constitute an advice, an offer to sell/ purchase or as an invitation orsolicitation to do so for any securities of any entity, and further, HDFC AMC / its subsidiaries / affiliates / sponsors / trustee (HDFC AMC Group) or their offi-cers, employees, personnel, directors may be associated in a commercial, professional or personal capacity or may have a commercial interest including asproprietary traders in or with the securities and/ or companies or issues or matters as contained in this publication and such commercial capacity or inter-est whether or not differing with or conflicting with this publication, shall not make or render (HDFC AMC Group) liable in any manner whatsoever & (HDFCAMC Group) or any of their officers, employees, personnel, directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirectloss arising from the use or access of any information that may be displayed in this publication from time to time. Recipients of the information containedherein should exercise due care and caution and read the offer documents (including if necessary, obtaining the advice of tax / legal / accounting / finan-cial / other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained herein. The printing and mail-ing cost of this newsletter is charged to the respective schemes subject to Securities & Exchange Board of India (Mutual Funds) Regulation, 1996.

Editorial opinions expressed in Intouch Mutually (Page no. 4 to 5) are not necessarily those of HDFC AMC Group, or any of their officers, employees,personnel, directors and HDFC AMC Group and their officers, employees, personnel, directors do not accept responsibility for the editorial content. HDFCAMC Group or any of their officers, employees, personnel, directors make no representation as to the accuracy, completeness or reliability of the editorialcontent and hereby disclaim any liability with regard to the same.

HDFC Equity Fund, HDFC Capital Builder Fund, HDFC TaxSaver and HDFC Premier Multi-Cap Fund, which are benchmarked to S&P CNX 500 Index are notsponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL is not responsible for any errors or omissions or the resultsobtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost prof-its) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such.

# S&P CNX 500

Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based onthe weighted average monthly returns for the last 3 and 5-year periods. In the case of debt funds this rating is based on the weighted average weeklyreturns for the last 18 months and 3-year periods and in case of short-term debt funds - weekly returns for the last 18 months. These ratings do not takeinto consideration any entry or exit load.

Five-stars indicate that a fund is in the top 10 per cent of its category in terms of historical risk-adjusted returns. Four stars indicate that a fund is inthe next 22.5 per cent of its category, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. The num-ber of schemes in each category is mentioned along side the categories name. Equity Diversified (72), Equity : Index (18), Equity Tax Planning (19), HybridEquity Oriented (21), Hybrid: Monthly Income (37), Debt: Medium-term (41), Gilt: Medium and Long-term (41), Gilt: Short-term (16), Debt: Ultra Short-term(35), Debt: Ultra Short-term Institutional (29), Debt: Short-term (21), Debt: Floating Rate Short-term (19) Debt: Floating Rate Long-term (14), Hybrid: Debt-oriented (15). These Fund Ratings are as on September 30, 2006.

The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to changeevery month. The Rating is based on primary data provided by respective funds, Value Research does not guarantee the accuracy.

Value Research Ratings

Intouchmutually, September 2006, RNI Regd. No. MAHENG/2003/10804

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INVESTOR SERVICE CENTRES (ISCs)

Investor Services : (at Mumbai)Toll-free number : 1800 22 5373Dedicated number : 022-6631 6300

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ANDHRA PRADESH HDFC Asset Management Company Ltd., 6-3-883/7, 2nd Floor, Saphire Square, Somajiguda, Hyderabad 500 282.Tel: 040 - 2341 7401-05, Fax: 040 - 2341 7407.HDFC LIMITED, Ground Floor, Saigopal Arcade, Opp Waltair Club, Waltair Main Road, Siripuram, Visakhapatnam 530 003.Tel: 0891- 276 9636, Fax: 0891 - 255 0411.

BIHAR HDFC LIMITED, Rani Plaza Apartment, (Patna X-Ray Clinic), Exhibition Road, Patna 800 001.Tel: 0612 - 232 2047. Fax: 0612 - 232 0684.

DELHI HDFC AMC LIMITED, 4th Floor, Mohan Dev Bldg., 13, Tolstoy Marg, Connaught Place, New Delhi 110 001.Tel: 011 - 6632 4000. Fax: 011 - 2335 1318.

GOA HDFC AMC LIMITED, A3, First Floor, Krishna Building, Opp. Education Dept, Behind Susheela Building, G.P. Road, Panaji, Goa 403 001.Tel: 0832 - 242 5609, 242 5610, Fax: 0832 - 242 5614.

GUJARAT HDFC AMC LIMITED, C/o. GRUH Finance Limited, GRUH House, Nr. Pantaloon Showroom, Netaji Marg, Mithakhali Six Roads, Ahmedabad 380 009.Tel: 079 - 26403582/83/84 Telefax: 079 - 2640 3584.HDFC AMC LIMITED, Upper Ground Floor, Gokulesh, R C Dutt Road, Vadodara 390 007.Tel: 0265 - 552 1110 / 20/ 30 / 40, Fax: 0265 - 552 1150.HDFC AMC LIMITED., U1 - U3, Jolly Plaza, Opp Athwa Gate Police Station, Athwa Gate, Surat 395 001.Tel: 0261 - 246 0082 / 83. Fax: 0261 - 246 0091. HDFC Asset Management Company Ltd., 2nd Floor, Shiv Darshan,Dr Radha Krishnan Road, 5, Jagnath Plot Corner, Rajkot - 360 001.Tel: 0281 552 4881/2

JHARKHAND HDFC LIMITED, Ground Floor, Boulevard Hotel, D’Costa Mansion, Main Road, Bistupur, Jamshedpur 831 001.Tel: 0657 - 3091826. Telefax: 0657 - 2426730.

KARNATAKA HDFC AMC LIMITED, No.114, 1st Floor, Prestige Towers, 99 & 100, Residency Road, Bangalore 560 025.Tel: 080 - 6620 5300, Fax: 080 - 5112 5255.HDFC AMC LIMITED., 3rd Floor, Raj Business Centre, Raj Towers,Balmatta, Mangalore 575 001.Tel: 0824 526 9000

KERALA HDFC AMC Ltd., Ground Floor, Cinema Cum Commercial Complex, Behind Ravipuram Bus Stop, M.G. Road, Kochi 682 016,Tel: 0484 - 235 7707 / 08, 394 3058 / 059, 235 8462. Telefax: 0484 - 235 8462.

MADHYA PRADESH HDFC LIMITED, HDFC House, 10 A / 1, M. G. Road, Indore - 452 001 (M.P.)Tel: 0731 - 502 2241 & 502 2242, Fax: 0731 - 251 3784.

HDFC LIMITED,Ranjit Towers, Zone II, 8 MP Nagar, Bhopal 462 011.Tel: 0755 - 528 5385, 527 7772, 527 3330 Fax: 0755-527 3331.

MAHARASHTRA HDFC AMC LIMITED, Mistry Bhavan, 1st Flr, 122, Backbay Reclamation, Dinsha Vachha Road, Churchgate, Mumbai 400 020. Tel: 022 - 5631 6300 Fax: 022 - 2282 1144.HDFC AMC LIMITED, 106-110, Shriram Shyam Towers, 2nd Floor, Next to NIT Building, Kingsway, Sadar, Nagpur 440 001.Tel: 0712 - 663 0301 / 02 / 04, Fax: 0712 - 663 0206. HDFC AMC LIMITED, HDFC House, 2nd Floor, Shivaji Nagar, University Road, Pune 411 005.Tel: 020 - 2552 1680 / 2552 1681, Fax: 020 - 2552 1683.HDFC AMC LIMITED, HDFC House, Sharanpur Link Road,Nashik 422 005.Tel: 0253 - (D) 561 9356, 560 6000 Fax: 0253 - 257 0256.

ORISSA HDFC LIMITED, 2nd Floor, Vinayak 96, Janpath,Bhubaneshwar 751 001Tel: 0674 - 645 0502, 645 1502, Telefax: 0674 - 253 1483.

PUNJAB HDFC AMC LTD, SCO 375-376, Ground Floor, Sector 35-B, Chandigarh 160 022.Tel: 0172 - 262 3397, 262 4497, Fax: 0172 - 301 3839. HDFC AMC LIMITED, SCO 122, Feroze Gandhi Market, Ludhiana 141 001.Tel: 0161 - 277 4321, 501 4321, Fax: 0161 - 301 3838.

RAJASTHAN HDFC AMC LIMITED, Moondhra Bhavan, 3 Ajmer Rd,Jaipur 302 001.Tel: 0141 - 511 1125, 237 4968, Fax: 0141 - 511 1126.HDFC AMC LIMITED, Gulab Singh Building, 11, Chopasani Road,JJooddhhppuurr - 334422 000033..Tel: (0291) - 510 1927, 510 1937. Fax: 0291 - 5105919

TAMIL NADU HDFC AMC LIMITED, ITC Centre, 1st Floor, 760 Anna Salai, Chennai 600 002.Tel: 044 - 2841 5851/52, Fax: 044 - 2841 5855 HDFC AMC LIMITED, 1371A, Ground Floor, Nadar Building Trichy Road, Coimbatore 641 018.Tel: 0422 - 439 1861 / 62 / 63, Fax: 0422 - 439 1714.

UTTAR PRADESH HDFC AMC LIMITED, 4 Shahnajaf Road, Lucknow 226 001.Tel: 0522 - 220 7591, 220 0163, Fax: 0522 - 223 0408. HDFC AMC LIMITED, 1st Floor, 16/80 D, Behind SBI Main, Civil Lines, Kanpur 208 001.Tel: 0512 - 233 1484-87, Fax: 0512 - 233 1487.

WEST BENGAL HDFC AMC LIMITED, Menaka Estate, 1st Floor, 3 Red Cross Place, Kolkata 700 001. Tel. 033 - 2242 7849/53/56/59. Fax: 033 - 2243 9582.

RReeggiisstteerreedd OOffffiiccee:: Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai 400 020.

Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the Scheme(s) objectives will be achieved. As with any invest-ment in securities, the Net Asset Value of Units issued under the Scheme(s) may go up or down depending on the various factors and forces affecting the capital markets. Past performance ofthe Sponsors and their affiliates/AMC/Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme(s) of the Mutual Fund. The Sponsors are not responsible or liablefor any loss or shortfall resulting from the operations of the Scheme(s) beyond the contribution of Rs.1 lakh each made by them towards the corpus of the Mutual Fund. The names of theScheme(s) of the HDFC Mutual Fund do not in any manner indicate either the quality of the Scheme(s) or their future prospects and returns. “Standard & Poor’s® and “S&P® are trademarksof The McGraw-Hill Companies, Inc. and have been licensed for use by India Index Services & Products Limited (IISL), which has sublicensed such marks to the HDFC Asset Management CompanyLimited. The S&P CNX Nifty is not compiled, calculated or distributed by Standard & Poor’s and Standard & Poor’s and IISL make no representation regarding the advisability of investing in prod-ucts that utilize any such Index as a component. All rights in the SENSEX vest in The Stock Exchange, Mumbai (“BSE”). BSE and SENSEX are trademarks of BSE and are used by the HDFC AssetManagement Company Limited under license. BSE shall not be liable in any manner whatsoever (including in negligence) for any loss arising to any person whosoever out of use of or relianceon the SENSEX by any person. Investors in the Scheme(s) are not being offered any guaranteed/assured returns. Please read the respective Offer Documents carefully before investing. In viewof the individual nature of tax consequences, each investor is advised to consult his/her professional tax advisor. Applications would be accepted at Investor Service Centres (ISCs) and on-goingRedemptions (subject to completion of Lock-iin-PPeriod, if any) can be made at the ISCs on all Business Days.The AMC will calculate and publish NAVs on all Business Days. This quarterly newslet-ter contains unaudited figures. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life InvestmentsLimited (liability restricted to their contribution of Rs 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFCAsset Management Company Limited as the Investment Manager.

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