M 100 booklet-rev 10th jan

Motilal Oswal Mutual Fund presents m 100Mos shares(An Open Ended Index Exchange Traded Fund)

NFONFOOpens: 12th Jan 2011Closes: 24th Jan 2011Opens: 12th Jan 2011Closes: 24th Jan 2011

Acts like a fund, Trades like a share

MOStSharesMutual Fund

India’s GDP expected to grow from $1.3 tn to $5 tn by 2020.

This period may be marked by

A sustained increase in discretionary spend, savings and investments.

Significant growth in India allocation by global investors.

Midcap stocks are best positioned to capture the India growth

story - The S Curve

2

Midcaps - Wealth Creators

Source: Internal Analysis

Past performance may or may not be achieved in the future

3

Midcap Stocks

Early stage growth companies – Successful small cap companies

Focused on their specific niches

Hidden Gems:

under-researched

under-owned

under-valued

Seasoned management, established products, reasonable market share,

and name recognition

Outperformance relative to large caps

Complements large cap portfolios - better portfolio diversification

Source: Internal Analysis

4

Performance of Active Midcap Funds

Source :- www.mutualfundsindia.com and Internal Analysis

Returns compounded annually


3 Years 5 Years

Average Midcap Fund Performance -5.57% 13.14%

CNX Midcap -2.36% 16.71%

Index Outperformance 3.21% 3.57%

Of the active midcap funds,

90% underperformed the index over 5 years

70% Underperformed the index over 3 years

5

The CNX Midcap Index

Source: India Index Services & Products Ltd. (IISL)

For further details, please refer to the Scheme Information Document (SID)

The primary objective: benchmark of the Midcap segment of the market

Trading Interest : minimum listing record of 6 months.

Financial Performance : minimum track record of 3 years operations and +ve net worth.

Criteria for Selection of Constituent Stocks

Exclude stocks more than 5% market capitalization of the universe.

The weight of the remaining stocks is determined and cumulative

weight calculated.

First 75 percent of the revised universe are excluded along with Nifty

Stocks.

Remaining top 100 companies form the CNX Midcap Index.

6

CNX Midcap Index

Source: IISL

Data as on 31.12. 2010

Key Statistics Maximum

` crs

Minimum

` crs

Average

` crs

Total

` tn

Market Cap 29,712 1,823 8,290 8.29

Free Float Market Cap 10,669 36 3,558 3.56

Weightage 3.72% 0.01% -

Sector Allocation Total

Financials 21.15

Healthcare 12.37

FMCG 8.7

Engineering 8.33

Chemicals 8.13

TMT 6.03

Auto 6.02

Construction 5.68

Power 5.08

Cement 4.8

Oil and Gas 3.89

Others 9.81

Stars and Chartbusters

Top 10 Constituents

Asian Paints Ltd.3.72%

Crompton Greaves Ltd.3.30%

Lupin Ltd.3.20%

Ultratech Cement Ltd.3.00%

Shriram Trans. Finance Co. Ltd.2.90%

Union Bank Of India2.20%

Exide Industries Ltd.2.15%

Cummins India Ltd.2.14%

Titan Industries Ltd.2.09%

Yes Bank Ltd.2.08%

7

Midcap, Nifty and Nifty Jr.

Source: Bloomberg. Data as on 31.12.2010. Values rebased to 10000 on 01-01-2001

Past performance may or may not be achieved in the future.

CAGR: Compounded annual growth rate

(All Figures INR) Midcap Nifty Nifty Jr

Initial Investment amount: 10000 10000 10000

Ending amount: 77,169 47,804 49,973

Years of investment: 10 10 10

CAGR (%): 22.66% 16.93% 17.45%

Standard Deviation 25.50% 26.10% -

8

Complements Large Caps

Source: Bloomberg. Data as on 31.12.2010


18%

54%

-1%

14%17%

21%23%

16%

45%

-0.4%

11% 16%

18% 17%

-10%

0%

10%

20%

30%

40%

50%

60%

1Year 2 Years 3 Years 4 Years 5 Years 7 Years 10 Years

Midcap

Nifty

9

Yearly Returns

Source: Bloomberg.


-30%

25%

139%

23%

35%

29%

74%

-60%

106%

18%

-16%

4%

71%

9%

36% 40%

53%

-53%

81%

16%

-100%

-50%

0%

50%

100%

150%CNX Midcap

Nifty

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

10

The S Curve - Select Midcap Stocks

Source: Bloomberg. Values rebased to 10000 on 01-01-2001


Nifty

Jindal Steel & Power

CNX Midcap

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Jan

-01

Ma

r-0

1

Jun

-01

Se

p-0

1

De

c-0

1

Ma

r-0

2

Jun

-02

Se

p-0

2

De

c-0

2

Fe

b-0

3

Ma

y-0

3

Au

g-0

3

No

v-0

3

Fe

b-0

4

Ma

y-0

4

Au

g-0

4

Oct-

04

Jan

-05

Ap

r-0

5

Jul-

05

Oct-

05

Jan

-06

Ap

r-0

6

Jun

-06

Se

p-0

6

De

c-0

6

Ma

r-0

7

Jun

-07

Se

p-0

7

De

c-0

7

Fe

b-0

8

Jun

-08

Au

g-0

8

No

v-0

8

Fe

b-0

9

Jun

-09

Au

g-0

9

No

v-0

9

Fe

b-1

0

Ma

y-1

0

Au

g-1

0

No

v-1

0

Nifty

Asian Paints

CNX Midcap

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan

-01

Mar

-01

Jun

-01

Au

g-0

1

No

v-0

1

Feb

-02

Ap

r-0

2

Jul-

02

Oct

-02

De

c-0

2

Mar

-03

Jun

-03

Au

g-0

3

No

v-0

3

Jan

-04

Ap

r-0

4

Jul-

04

Sep

-04

De

c-0

4

Feb

-05

May

-05

Au

g-0

5

Oct

-05

Jan

-06

Ap

r-0

6

Jun

-06

Sep

-06

No

v-0

6

Feb

-07

May

-07

Jul-

07

Oct

-07

Jan

-08

Mar

-08

Jun

-08

Sep

-08

No

v-0

8

Feb

-09

May

-09

Au

g-0

9

Oct

-09

Jan

-10

Ap

r-1

0

Jun

-10

Sep

-10

No

v-1

0

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The S Curve - Select Midcap Stocks

Source: Bloomberg. Values rebased to 10000 on 01-01-2001


Nifty

Lupin

CNX Midcap

-

50,000

100,000

150,000

200,000

250,000

Jan

-01

Mar

-01

Jun

-01

Au

g-0

1

No

v-0

1

Feb

-02

Ap

r-0

2

Jul-

02

Oct

-02

De

c-0

2

Mar

-03

Jun

-03

Au

g-0

3

No

v-0

3

Jan

-04

Ap

r-0

4

Jul-

04

Sep

-04

De

c-0

4

Feb

-05

May

-05

Au

g-0

5

Oct

-05

Jan

-06

Ap

r-0

6

Jun

-06

Sep

-06

No

v-0

6

Feb

-07

May

-07

Jul-

07

Oct

-07

Jan

-08

Mar

-08

Jun

-08

Sep

-08

No

v-0

8

Feb

-09

May

-09

Au

g-0

9

Oct

-09

Jan

-10

Ap

r-1

0

Jun

-10

Sep

-10

No

v-1

0

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jan

-01

Mar

-01

Jun

-01

Au

g-0

1

No

v-0

1

Feb

-02

Ap

r-0

2

Jul-

02

Oct

-02

Dec

-02

Mar

-03

Jun

-03

Au

g-0

3

No

v-0

3

Jan

-04

Ap

r-0

4

Jul-

04

Sep

-04

Dec

-04

Feb

-05

May

-05

Au

g-0

5

Oct

-05

Jan

-06

Ap

r-0

6

Jun

-06

Sep

-06

No

v-0

6

Feb

-07

May

-07

Jul-

07

Oct

-07

Jan

-08

Mar

-08

Jun

-08

Sep

-08

No

v-0

8

Feb

-09

May

-09

Au

g-0

9

Oct

-09

Jan

-10

Ap

r-1

0

Jun

-10

Sep

-10

No

v-1

0

Nifty

Titan

CNX Midcap

12

Features of MOSt Shares M100

India’s 1st Midcap Index ETF; Based on CNX Midcap Index

To be Listed on National Stock Exchange of India Limited (NSE)

A mutual fund scheme with the convenience of real time liquidity and

prices

Diversified portfolio of 100 Midcap companies which are a part of CNX

Midcap Index

Low cost structure: Proposed Total Expense Ratio (TER) of 1% p.a.

(Maximum permissible 1.5%p.a.) as compared to traditional investment

products where the TER > 2% p.a.

Complete transparency with portfolio being disclosed on daily basis

No loads and a Tax efficient exposure to the market

No discretion with Fund Manager / AMC, ensuring replication of the

Index


13

MOSl Shares M100

Fund Manager: Rajnish Rastogi

15 Years Experience in Fund Management and Equity Research

Qualifications - CFA, M. Tech (Mgmt & Systems) and B.Tech from

Indian Institute of Technology (I.I.T.)

NFO Application for ETF Units

Minimum Investment ̀ 10,000/- & in multiple of ̀ 1 thereafter

NFO Opens 12th Jan 2011 to 24th Jan 2011

During NFO, the units of MOSt Shares M100 will be allotted at

1/1000th of CNX Midcap Index value

Eg. CNX Midcap index on 31st Dec 2010 : 8857.2

MOSt Shares M100 allotment price per unit : ` 8.8572

MOSt Shares M100 Units will be credited to DP Account of the

investor & listed on NSE


14

DISCLAIMER:

This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions and features of Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares M100). The information / data herein alone is not sufficient and shouldn't be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice. While utmost care has been exercised while preparing this document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the Motilal Oswal Mutual Fund/ Motilal Oswal Asset Management Company Limited. Readers should before investing in the Scheme make their own investigation and seek appropriate professional advice.

Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd. Scheme Classification & Objective: Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares M100), an open ended Index Exchange Traded Fund that seeks investment return that corresponds (before fees and expenses) to the performance of CNX Midcap Index (Underlying Index), subject to tracking error. Asset Allocation: Securities constituting CNX Midcap Index: 95%-100%; Debt and Money market instruments and cash at call: 0-5%. Load: Entry Load: Nil Exit Load: Nil Terms of Issue: Minimum Application Amount: During NFO, Rs. 10,000/- and in multiples of Re. 1/- each. Ongoing Basis, On the Exchange: The units of the Scheme are proposed to be listed on the Capital Market Segment on National Stock Exchange (NSE). On NSE, the units of the Scheme can be purchased/sold in minimum lot of 1 unit and in multiples thereafter. Directly with the Fund: The minimum number of units of the Scheme that investors can create/redeem in exchange of portfolio deposit and cash component is 2,50,000 units and in multiples thereof. Face Value & Issue Price: Offer of units having face value of Rs. 10/- per unit for cash at an allotment price during the New Fund Offer

15

and at NAV based prices during continuous offer. Investor Benefits and General Services: During continuous offer, sale and redemption on all business days at NAV based prices. NAVs to be declared on all business days. Risk Factors: (1) All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme's objectives will be achieved (2) As the price / value / interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of the Scheme may go up or down depending upon the factors and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provide a basis of comparison with other investments (4) Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares M100) is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) The present Scheme is not a guaranteed or assured return Scheme. (7) Investment in the scheme shall be subject to various other risk factors including but not limited to risk associated with investment in equities such as trading volumes, settlement risk, liquidity risk, default risk, tracking error risk, including the possible loss of principal, investment in derivatives, etc. IISL Disclaimer: MOSt Shares M100 offered by Motilal Oswal Asset Management Company Limited (MOAMC) or its affiliates is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) and its affiliates. IISL and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of MOSt Shares M100 or any member of the public regarding the advisability of investing in securities generally or in the MOSt Shares M100 linked to CNX Midcap Index or particularly in the ability of CNX Midcap Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Midcap Index in the Scheme Information Document. NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. For further Scheme Specific Risk Factors & other details, Please read the Scheme Information Document (SID) & Statement of Additional Information (SAI) carefully before investing. A copy of SID, SAI and KIM alongwith the application form are available at the office of the AMC, R&T, Distributors, or can be downloaded from www.motilaloswal.com/assetmanagement and www.mostshares.com.

Call: 1800-200-6626 I E-mail: [email protected]

Website: www.mostshares.com www.motilaloswal.com/assetmanagement

SMS: M100 to 575753

Acts like a fund, Trades like a share

MOStSharesMutual Fund

M 100 booklet-rev 10th jan

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