Name of Mutual Fund

Common Scheme Information Document Taurus Mutual Fund

COMMON

SCHEME INFORMATION DOCUMENTNames and type of the schemes

Taurus Starshare Taurus Discovery Fund

Taurus Bonanza Fund

Taurus Infrastructure Fund

Taurus Ethical Fund

An open end Equity Growth Fund

An open end Equity Growth Fund

An open end Equity Growth

Fund

An open end Equity Thematic Fund

An open end Equity Oriented Fund

Taurus Tax Shield Taurus Income Fund Taurus Gilt Fund Taurus Liquid Fund Taurus Short Term Bond Fund

An open end Equity Linked Tax Saving

Scheme

An open end Bond Scheme

An open end Gilt Scheme

An open end Liquid Scheme

An open end Debt Scheme

OFFER OF UNITS OF RS.10/- PER UNIT AT NAV BASED PRICES

Name of Mutual Fund : Taurus Mutual Fund Name of Asset Management Company : Taurus Asset Management Company Limited

Name of Trustee Company : Taurus Investment Trust Company LimitedAddresses, Website of the entities : 305, Regent Chambers, 208,

Jamnalal Bajaj Marg, Nariman Point, Mumbai - 400 021 Website: www.taurusmutualfund.com

The particulars of the Schemes have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of Taurus Mutual Fund, Tax and Legal issues and general information on www.taurusmutualfund.com

This Scheme Information Document is dated 18th May, 2009 1

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.

The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

http://www.taurusmutualfund.com/



TABLE OF CONTENTS

HIGHLIGHTS / SUMMARY OF THE SCHEME 3

I. INTRODUCTION 6

A RISK FACTORSStandard Risk FactorsScheme Specific Risk Factors

666

B REQUIREMENT OF MINIMUM NUMBER OF INVESTORS AND MINIMUM HOLDING BY SINGLE INVESTOR 10

C SPECIAL CONSIDERATIONS 11D DEFINITIONS 12E DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY 14

II INFORMATION ABOUT THE SCHEME 15

A TYPE OF THE SCHEME 15B WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? 15C HOW WILL THE SCHEME ALLOCATE ITS ASSETS? 16D WHERE WILL THE SCHEME INVEST ? 16E WHAT ARE THE INVESTMENT STRATEGIES? 16F FUNDAMENTAL ATTRIBUTES

Type of SchemeInvestment ObjectiveTerms of Issue

35353535

G HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 35H WHO MANAGES THE SCHEME? 36I. WHAT ARE THE INVESTMENT RESTRICTIONS? 37J. HOW HAS THE SCHEME PERFORMED? 39

III. UNITS AND OFFER 43

A NEW FUND OFFER (NFO) 43B ONGOING OFFER DETAILS 43C PERIODIC DISCLOSURES 56D COMPUTATION OF NAV 58

IV. FEES AND EXPENSES 58A NEW FUND OFFER (NFO) EXPENSES 58B ANNUAL SCHEME RECURRING EXPENSES 58C LOAD STRUCTURE 60D WAIVER OF LOAD FOR DIRECT APPLICATIONS 63

V. RIGHTS OF UNITHOLDERS 63

VI. PENALTIES AND PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

63

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HIGHLIGHTS/ SUMMARY OF THE SCHEME

1. Names of Schemes & Investment Objective

I) Taurus Starshare : To provide long term capital appreciation

II) Taurus Discovery Fund : To generate capital appreciation by identification and selection of low priced stocks through price discovery mechanism.

III) Taurus Bonanza Fund : To generate long term capital appreciation by primarily investment in equities and equity related instruments

IV) Taurus Infrastructure Fund : To provide capital appreciation and income distribution to unitholders by investing pre-dominantly in equity and equity related securities of the Companies belonging to infrastructure sector, it’s related industries inclusive of suppliers of capital goods, raw materials and other supportive services to infrastructure companies and balance in debt and money market instruments.

V) Taurus Ethical Fund : To provide capital appreciation and income distribution to unitholders through investment in a diversified portfolio of equities, which are based on the principles of Shariah.

VI) Taurus Tax Shield : To provide long term capital appreciation over the life of the scheme through investment pre-dominantly in equity shares, besides tax benefits.

VII) Taurus Income Fund : To maximize income through basket of debts, bonds, debentures, Government Securities and money market instruments etc. of varying maturities while maintaining safety and liquidity

VIII) Taurus Gilt Fund : To provide risk free returns to the investors even for a shorter duration through investment in securities issued by Central Government or State Government or any security unconditionally guaranteed by Government of India. Investment will also be made in repos and reverse repos.

IX) Taurus Liquid Fund : To generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

X) Taurus Short Term Bond Fund : To generate returns with higher liquidity and low volatility from a portfolio of money market and debt instruments.

2. Liquidity : All Schemes are open ended and offer units for sale and redemption at NAV based prices on all business days .(In case of Taurus Tax Shield redemption is allowed after a lock-in period of 3 years)As per SEBI Regulations, the Fund shall despatch redemption proceeds within 10 working days of receiving a valid redemption request. However, the Fund will endeavour to issue redemption cheques at the earliest.

3. Benchmark

I) Taurus Starshare : BSE 200

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II) Taurus Discovery Fund : CNX Midcap Index

III) Taurus Bonanza Fund : BSE 100

IV) Taurus Infrastructure Fund : BSE 200

V) Taurus Ethical Fund : S&P CNX 500 Shariah

VI) Taurus Tax Shield : BSE 200

VII) Taurus Income Fund : Crisil Composite Bond Fund Index

VIII) Taurus Gilt Fund : I Sec Composite Index

IX) Taurus Liquid Fund : Crisil Liquid Fund Index

X) Taurus Short Term Bond Fund : Crisil Liquid Fund Index

4. Transparency/NAV Disclosure : The AMC will calculate the NAVs of all the schemes on all business days and release the same to the Press. The Net Asset Values will also be uploaded on AMFI’s website www.amfiindia.com on all business days by 09:00p.m and also on the website of the Fund.

The AMC will publish full portfolio of the schemes on half-yearly basis.

5. Loads

I) Taurus Starshare, Taurus Discovery Fund, Taurus Bonanza Fund, Taurus Infrastructure Fund and Taurus Ethical Fund

: Amount in Rs. Crores

Entry Load

Exit Load as % Period in months

0-6 >6<12Less than 2

crs.2.25% 1.00% 0.50%

2 crs. and above but less

than 5 crs.

Nil 0.50% Nil

5 crs. and above

Nil Nil Nil

Any amount by SIP

2.25% 1.00% 1.00%

Switch: Equity to Equity/ELSS Entry/Exit Load NIL and Equity to Liquid/Debt-Entry/Exit Load as per Load Structure of the relevant schemes.

Note: In case of direct applications, there is no entry load.

II) Taurus Tax Shield : Entry Load Exit Load2.5%

(Including Systematic Investment Plan

Nil

Switch: Taurus Tax Shield to other schemes after lock in period of 3 years, Entry/Exit load will be applicable.


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http://www.amfiindia.com/


III) Taurus Income Fund : App. Amt. (Rs.) Entry Load Exit Load< 50 Lacs Nil 2% if exited before 3

Months1% if exited >= 3 Monthsbut before 1 Year

=>50 lacs Nil 0.50% if exited before 1 Month

Switch: Taurus Income Fund to other schemes: Applicable Entry/Exit loads of the relevant schemes.

IV) Taurus Gilt Fund : Entry Load Exit LoadNil 0-3 months – 0.25% >

3 months Nil

Switch: Taurus Gilt Fund to other schemes. Applicable Entry/Exit Load of the scheme where in units are switched in

V) Taurus Liquid Fund : Plan Entry Load

Exit Load

Retail Plan Nil Nil

Institutional Plan Nil Nil

Super Institutional Plan

Nil Nil

Switchover Load from Taurus Liquid Fund to other schemes. Applicable Entry/Exit Loads of the relevant schemes.

VII) Taurus Short Term Bond Fund : Plan Entry Load

Exit Load

Retail Plan/ SIP/SWP/STP

Nil 0.10% if redeemed within 3 days



Nil Nil

Switch: Taurus Short Term Bond Fund to other schemes. Applicable Entry/Exit Loads of the relevant schemes.

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6. Minimum Application Amount

Minimum amount for purchaseTaurus Starshare, Taurus Discovery Fund, Taurus Bonanza Fund, Taurus Infrastructure Fund, Taurus Income Fund, Taurus Gilt Fund,

Rs.5000/- and in multiple of Rs.1000/- thereof

Taurus Ethical Fund Rs.5000/- and in multiple of Re.1/- thereofTaurus Tax Shield Rs. 500/- & multiples of Rs. 500/-Taurus Liquid Fund, Taurus Short Term Bond Fund

Retail plan : Rs 5000/- and in multiple of Rs 1000/- thereofInstitutional plan : Rs 1 cr and in multiple of Rs 1000/- thereofSuper-Institutional plan : Rs 5 crs and in multiple of Rs 1000/- thereof

I. INTRODUCTION

A. RISK FACTORS

Standard Risk Factors

Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

As the price / value / interest rates of the securities in which the Schemes invest fluctuate, the value of your investment in the Schemes may go up or down depending on various factors and forces affecting the capital markets.

Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Schemes. The names of the Schemes do not in any manner indicate either the quality of the Schemes or their future prospects

and returns. The Sponsor is not responsible or liable for any loss or shortfall resulting from the operations of the Scheme beyond the

contribution of Rs. 2,00,000/- (Rupees Two Lacs Only) made by it towards the corpus of the Mutual Fund. The present schemes are not guaranteed or assured return schemes.

Schemes’ Specific Risk Factors

• Risks associated with equity and equity related instruments:

Equity and equity related instruments by nature are volatile and prone to price fluctuations on a daily basis due to macro and micro economic factors. The value of Equity and Equity Related Instruments may fluctuate due to factors affecting the securities markets such as volume and volatility in the capital markets, interest rates, currency exchange rates, changes in law/policies of the Government, taxation laws, political, economic or other developments, which may have an adverse impact on individual securities, a specific sector or all sectors. Consequently, the NAV of the Units issued under the Schemes may be adversely affected.

Further, the Equity and Equity Related Securities are risk capital and are subordinate in the right of payment to other securities, including debt securities.

Equity and Equity Related Instruments listed on the stock exchange carry lower liquidity risk; however the Schemes’ ability to sell these investments is limited by the overall trading volume on the stock exchanges. In certain cases, settlement periods may be extended significantly by unforeseen circumstances. The inability of a Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme's portfolio may result, at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme's portfolio.

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The Schemes may invest in securities which are not listed on the stock exchanges. These securities may be illiquid in nature and carry a higher amount of liquidity risk, in comparison to securities that are listed on the stock exchanges or offer other exit options to the investor. The liquidity and valuation of the Scheme's investments due to its holdings of unlisted securities may be affected if they have to be sold prior to the target date of disinvestment.

• Risks associated with Fixed Income and Money Market Instruments:

Interest - Rate Risk

Fixed Income and Money Market Instruments run interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rate falls, the prices increase. In case of floating rate instruments, an additional risk could arise because of the changes in the spread of floating rate instruments.(

Credit Risk

Credit risk or default risk refers to the risk that the issuer of a fixed income security may default on interest payment or even in paying back the principal amount on maturity. In case of Government Securities, there is minimal credit risk to that extent. Lower rated or unrated securities are more likely to react to developments affecting the market and credit risk than the highly rated securities which react primarily to movements in the general level of interest rates. Lower rated or unrated securities also tend to be more sensitive to economic conditions than higher rated securities.

Liquidity or Marketability Risk

The ability of a Scheme to execute sale/purchase orders is dependent on the liquidity or marketability of the underlying securities. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. The securities that are listed on the stock exchange carry lower liquidity risk, but the ability to sell these securities is limited by the overall trading volumes. Further, different segments of Indian financial markets have different settlement cycles and may be extended significantly by unforeseen circumstances.

Re-investment Risk

This refers to the interest rate risk at which the intermediate cash flows received from the securities in a Scheme including maturity proceeds are reinvested. Investments in fixed income securities may carry re-investment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the debt security. Consequently, the proceeds may get invested at a lower rate.

Risks associated with investments in Government Securities

The Government Securities Market is the largest and most liquid market in India, with the large participants being banks, non-banking finance companies, insurance companies and provident funds which are required by statutes to invest in Government securities. Over the last few years, Government of India and the Reserve Bank of India have made substantial efforts to move towards a transparent market - related borrowing programme. The Central and State Governments raise large sums from the market every year to meet their revenue and capital expenditure. It being a wholesale market, with the participants being institutional investors and provident funds etc, small investors do not get the opportunity of investing in Government Securities. With the interest rate de-regulation in progress, banks' portfolios being increasingly marked to market and the likelihood of interest rate derivatives becoming available, the Government Securities market is expected to remain the most liquid market and an avenue for investment where safety is of paramount importance. Investment in Government Securities carries a zero credit risk. Investment in debentures and bonds issued by entities other than Government of India/State Governments is subject to Credit Risk. Therefore, there is need for an avenue for safe investments for all investors who are seeking total safety as distinct from different degrees of safety signified by the ratings assigned by various credit rating agencies. Bonds/debentures as well as other Money Market Instruments issued by Corporate entities run the risk of down-rating by the rating agencies and even default as the worst case. Government securities run no such risk. Payment of interest and principal amount has a sovereign status implying no default.

Government securities where a fixed coupon is offered are subject to price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or rise in the prices is a function of the existing coupon days to maturity and the increase or decrease in the level of interest rates. The new level of interest rate is determined by the rates at which Government raises new money and/or the price levels at which the market is already dealing in existing securities. The price-risk is not unique to Government Securities- it exists for all fixed income securities. However, Government Securities are unique in the sense that their credit risk always remains zero. Therefore, their prices are influenced only by movement in interest rate in the financial system. By contrast, in the case of corporate or institutional fixed income securities, such as bonds or debentures, prices are influenced by credit standing as well as the general level of interest rates.

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Floating rate securities issued by Government (coupon linked to treasury bill bench mark or a real return inflation linked bond) have the least sensitivity to interest rate movement compared to other securities. These securities can play an important role in minimizing interest rate risk on a portfolio.

Pressure on exchange rate of the Rupee may also affect security prices. However, as explained above, the securities being Government securities in which a scheme will invest, the payment of principal or interest on due dates is not in doubt even though the NAV may fluctuate.

Even though the Government securities market is more liquid compared to other debt instruments, on occasions, there could be difficulties in transacting in the market due to extreme volatility or unusual constriction in market volumes or on occasions when an unusually large transaction has to be put through. Liquidity of the Scheme may suffer if the guidelines issued by RBI for dedicated Gilt Funds undergo any adverse changes.

A Scheme may invest in Securities issued by Governments of G-7 nations. While the units of a Gilt Fund would be denominated in Indian rupees, the foreign securities would be denominated in the respective local currencies of the G-7 nations concerned or any other foreign currency. A Gilt Scheme may also invest in securities issued in foreign currency by Government of India / State Governments. The NAV of the Scheme would, therefore, be subject to fluctuations in the rupee foreign currency exchange rate. Further, as an offshore investor in Securities of G-7 nations, a Gilt Scheme would be subject to country risk on account of exchange control regimes, if any, in force from time to time in the G-7 nations concerned.

• Risks associated with Investing in ADR/GDR and Foreign Securities

Subject to necessary approvals, a Scheme may also invest in overseas financial assets as permitted under the applicable regulations. The value of an investment in a foreign issuer may depend on general global economic factors or specific economic and political factors relating to the country or countries in which the foreign issuer operates. To the extent the assets of the Scheme are invested in overseas financial assets, there may be risks associated with fluctuations in foreign exchange rates, restriction on repatriation of capital and earnings under the exchange control regulations and transaction procedure in overseas market. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls, political circumstances, bi-lateral conflicts or prevalent tax laws.

Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises from the change in price of one currency against other. The exchange risk associated with a foreign denominated instrument is a key element in foreign investment. This risk flows from differential monetary policy and growth in real productivity, which results in differential inflation rates. The risk arises because currencies may move in relation to each other.

• Risks associated with Investing in Derivatives

Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identify such opportunities. Identification and execution of the strategies to be pursued by a Fund Manager involve uncertainty and decision of a Fund Manager may not always be profitable. No assurance can be given that a Fund Manager will be able to identify or execute such strategies.

Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The risks associated with the use of derivatives are different from or possibly greater than the risks associated with investing directly in securities and other traditional investments. Other risks include risk of mis pricing or improper valuation and the inability of the derivative to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby a Scheme may not be able to sell or purchase derivative quickly enough at a fair price.

• Risks associated with Investing in Securitised Debt

The Scheme may invest in domestic securitised debt such as asset backed securities (ABS) or mortgage backed securities (MBS). Asset Backed Securities (ABS) are securitised debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. Mortgage backed securities (MBS) are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. ABS/MBS instruments reflect the undivided interest in the underlying pool of assets and do not represent the obligation of the issuer of ABS/MBS or the originator of the underlying receivables. The ABS/MBS holders have a limited recourse to the extent of credit enhancement provided. If the delinquencies and credit losses in the underlying pool exceed the credit enhancement provided, ABS/MBS holders will suffer credit losses. ABS/MBS are also normally exposed to a higher level of reinvestment risk as compared to the normal corporate or sovereign debt.

At present in Indian market, following types of loans are securitised:

Auto Loans (cars / commercial vehicles /two wheelers)

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Residential Mortgages or Housing LoansConsumer Durable LoansPersonal LoansCorporates Loans

The main risks pertaining to each of the asset classes above are described below:

Auto Loans (cars /commercial vehicles /two wheelers)The underlying assets (cars etc) are susceptible to depreciation in value whereas the loans are given at high loan to value ratios. Thus, after a few months, the value of asset becomes lower than the loan outstanding. The borrowers, therefore, may sometimes tend to default on loans and allow the vehicle to be repossessed. These loans are also subject to model risk. ie if a particular automobile model does not become popular, loans given for financing that model have a much higher likelihood of turning bad. In such cases, loss on sale of repossessed vehicles could be higher than usual.

Commercial vehicle loans are susceptible to the cyclicality in the economy. In a downturn in economy, freight rates drop leading to higher defaults in commercial vehicle loans. Further, the second hand prices of these vehicles also decline in such an economic environment.

Housing LoansHousing loans in India have shown very low default rates historically. However, in recent years, loans have been given at high loan to value ratios and to a much younger borrower class. The loans have not yet gone through the full economic cycle and have not yet seen a period of declining property prices. Thus the performance of these housing loans is yet to be tested and it need not conform to the historical experience of low default rates.

Consumer Durable LoansThe underlying security for such loans is easily transferable without the bank’s knowledge and hence repossession is difficult. The underlying security for such loans is also susceptible to quick depreciation in value. This gives the borrowers a high incentive to default.

Personal LoansThese are unsecured loans. In case of a default, the bank has no security to fall back on. The lender has no control over how the borrower has used the borrowed money. Further, all the above categories of loans have the following common risks:

All the above loans are retail, relatively small value loans. There is a possibility that the borrower takes different loans using the same income proof and thus the income is not sufficient to meet the debt service obligations of all these loans.

In India, there is insufficiency of ready comprehensive and complete database regarding past credit record of borrowers. Thus, loans may be given to borrowers with poor credit record. In retail loans, the risks due to frauds are high.

Corporate LoansThese are loans given to single or multiple corporates. The receivables from a pool of loans to corporates are assigned to a trust that issues Pass through certificates in turn. The credit risk in such PTCs is on the underlying pool of loans to corporates. The credit risk of the underlying loans to the corporates would in turn depend of economic cycles.

• Risks associated with Securities Lending

The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply with can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Mutual Fund may not be able to sell such lent securities and this can lead to temporary illiquidity.

• Risks associated with Short Selling

The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations. Short positions carry the risk of losing money and these losses may grow unlimited theoretically if the price of the stock increases without any limit which may result in major losses to the Scheme. At times, the participants may not be able to cover their short positions, if the price increases substantially. If numbers of short sellers try to cover their position simultaneously, it may lead to disorderly trading in the stock and thereby can briskly escalate the price even further making it difficult or impossible to liquidate short position quickly at reasonable prices. In addition, short selling also carries the risk of inability to borrow the security by the participants thereby requiringthe participants to purchase the securities sold short to cover the position even at unreasonable prices.

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B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

The Scheme/Plan shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). However, if such limit is breached during the NFO of the Scheme, the Fund will endeavor to ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme/ Plan(s) does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme / Plan(s) shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

Anti Money Laundering and Know Your Customer (KYC)TMF is committed to complying with all applicable anti money laundering and KYC laws and regulations. TMF recognizes the value and importance of creating a business environment that strongly discourages money launderers from using TMF. To that end, certain policies have been adopted by the AMC. The need to KYC is vital for the prevention of money laundering.

With effect from January 01, 2008, PAN shall be the sole identification number for all investors (including joint applicants, guardians and NRIs) for transacting in the Scheme, irrespective of the amount of transaction. Accordingly, for investing in the scheme, investors shall be required to submit a photocopy of the PAN card issued to them by the Income Tax Department, provided that the photocopy shall either be verified with the original at the ISCs or be verified/attested by bank managers or judicial authorities. Any application not accompanied by a copy of the PAN Card, will be liable to be rejected. However, vide Circular No.MRD/DOP/MF/CIR.08/2008 dated April 3, 2008 issued by SEBI, it has been clarified that Individuals and Non-Individuals residing in Sikkim location are exempted from submission of PAN. They have, however, to comply with KYC norms. Also, all investors (including guardians and power of attorney holders) need to complete the process of KYC by submitting a duly filled-up KYC application form along with photograph, photocopy of PAN card and proof of address for individuals or corporate documents for bodies corporate, in accordance with the Prevention of Money Laundering Act, 2002, Rules issued there under and related guidelines/circulars issued by SEBI. Investors shall note that completion of the KYC process is mandatory for any investment, whether by way of first time purchase or subsequent purchase, if the investment is for a value of Rs. 50,000 or more. To facilitate the KYC process, the mutual fund industry has collectively entrusted the responsibility of collection of documents for KYC, as well as related record keeping, to an independent agency (presently CDSL Ventures Limited) that will act as a central record keeping agency (‘Central Agency’). Therefore, investors may submit their applications for KYC, along with the requisite documents, at any ‘Point of Service’ designated by the Central Agency. For addresses of the Points of Service, kindly log on to the website of AMFI, www.amfiindia.com, website of Central Agency, www.cvlindia.com or the Fund, www.taurusmutualfund.com. While making an application for KYC, investors shall submit all the requisite documents in original, along with a self-attested photocopy of each of them. The original documents will be returned across the counter, after verification. Investors may also submit notarized copies of these documents. Investors will receive an acknowledgment (‘KYC Acknowledgment’) which shall be submitted to the Fund along with their application form in the case of a first time purchase, or with their additional purchase request in the case of a subsequent purchase in the Scheme. Investors shall be required to complete the KYC process only once for transactions across a majority of mutual funds, which are registered with the Central Agency for KYC. Accordingly, investors who have already completed the KYC process through the Central Agency shall, when making first time or subsequent purchases in the Scheme, be required to submit to the Fund a copy of their KYC Acknowledgment. Submission of the KYC Acknowledgment when investing in the Scheme shall be deemed sufficient compliance of the PAN and KYC requirements, provided that submission of the original PAN card for verification, along with a self-attested photocopy thereof, shall have been done at the time of completing the KYC process. Investors are requested to note that all transactions, as mentioned above, shall be in compliance of the PAN and KYC requirements. Accordingly, transactions which are not in compliance of the PAN and KYC requirements, as mentioned above, are liable to be rejected. Investors/Unit Holders may contact their distributors, if any, or the ISCs for any additional information/clarification.

Permanent Account Number (PAN)In accordance with SEBI circulars dated April 27, 2007 and June 25, 2007, with effect from July 02, 2007, PAN issued by the Income Tax authorities will be used as the sole identification number for all investors transacting in the securities market including mutual funds, irrespective of the amount of transaction. Thus, on and from January 01, 2008, it will be mandatory for all investors to provide a certified* copy of the PAN card for all transactions in units of the Scheme. In case of investors who do not provide a certified* copy of the PAN card, the application for transaction in units of the Scheme is liable for rejection.

*Investors are requested to submit a copy along with the original for verification at the investor service centers of the Fund/KARVY, which will be returned across the counter. A Bank Manager’s attestation or a Notarized copy will also be accepted.

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Suspicious Transaction ReportingIf after due diligence, the AMC believes that the transaction is suspicious in nature as regards money laundering, the AMC shall report any suspicious transactions to competent authorities under the PMLA and rules / guidelines issued there under by SEBI and RBI, furnish any such information in connection therewith to such authorities and take any other actions as may be required for the purposes of fulfilling its obligations under the PMLA without obtaining the prior approval of the investor / Unit Holder / a person making the payment on behalf of the investor.

C. SPECIAL CONSIDERATIONS

o Prospective investors should study this Scheme Information Document and Statement of Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming units, before making a decision to invest / redeem / hold Units.

o Neither this Scheme Information Document, Statement of Additional Information nor the Units have been registered in any jurisdiction. The distribution of this Scheme Information Document or Statement of Additional Information in certain jurisdictions may be restricted or totally prohibited to registration requirements and accordingly, persons who come into possession of this Scheme Information Document or Statement of Additional Information are required to inform themselves about and to observe any such restrictions and/ or legal compliance requirements.

o The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information in connection with offer of units under all the schemes. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information as having been authorized by the Mutual Fund, the AMC or the Trustee.

o Redemption due to change in the fundamental attributes of a Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions.

o The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that a Scheme is wound up for the reasons and in the manner provided in 'Statement of Additional Information ('SAI')'.

o The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in a Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

o The Mutual Fund may disclose details of the investor's account and transactions there under to those intermediaries whose stamp appears on the application form. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to a investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.

o In case the AMC or its Sponsor or their affiliates/associates or group companies make substantial investments, either directly or indirectly in a Scheme, present or future, redemption of units by these entities may have an adverse impact on the performance of a Scheme. This may also affect the ability of the other Unit holders to redeem their units.

o As the liquidity of a Scheme’s investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption requests or of a restructuring of a Scheme's portfolio. In view of this, the Trustee has the right, in its sole discretion, to limit redemptions under certain circumstances - please refer to the section "Right to Limit Redemptions" in this document.

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D. DEFINITIONS

The Trustee / TITCO Taurus Investment Trust Company Ltd. (Earlier known as Credit capital Investment Trust Company Ltd.) is a company incorporated under the Companies Act, 1956 and authorized by SEBI to act as the Trustee for Taurus Mutual Fund.

Asset Management Co./AMC/ Investment Manager/ TAMCO

Taurus Asset Management Company Ltd. (Earlier known as Credit capital Asset Management Company Ltd.), Investment Manager to Taurus Mutual Fund is a company incorporated under the Companies Act, 1956 and authorized by SEBI to act as the Asset Management Company.

Sponsor HB Portfolio Limited

HB Portfolio Ltd. (HBPL) HB Portfolio Ltd. is a company incorporated under the Companies Act, 1956.

SEBI or the Board The Securities & Exchange Board of India, a Board established under The Securities and Exchange Board of India Act, 1992, as amended from time to time.

SEBI Regulations The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time by SEBI for the operation and management of Mutual Funds, including any re-enactment thereof.

IT Act Income Tax Act 1961.

RBI Reserve Bank of India established under the Reserve Bank of India Act, 1934.

Custodian Deutsche Bank or any other Custodian appointed by the Trustees.

Depository Depository as defined in the Depository Act, 1996.

IMA Investment Management Agreement dated August 20, 1993 executed between TITCO and TAMCO and all amendments thereto from time to time.

Registrar & Transfer Agent Karvy Computer share Pvt. Ltd. or any other R&T agent appointed by the Trustees

Entry Load A charge that is paid by the unitholder at the time of investing in the units of the Scheme.

Exit Load A charge that is paid by the unitholder at the time of redeeming the units from the Scheme.

Contingent Deferred Sales Charge/CDSC

Exit charge permitted under SEBI Regulations for a no load scheme.

Common SID Scheme Information Document of all the schemes included in this document

Schemes Collectively referred to all the schemes included in this SID

TS Taurus Starshare, an open-end equity growth scheme.

TDF Taurus Discovery Fund, an open-end equity growth scheme.

TBF Taurus Bonanza Fund, an open-end equity growth scheme.

TISF Taurus Infrastructure Fund, an open end equity thematic fund.

TEF Taurus Ethical Fund, an open-end equity oriented scheme

TTS Taurus Tax Shield, an open-end Equity Linked Tax Saving Scheme.

TIF Taurus Income Fund, an open end Bond Scheme.

TGF Taurus Gilt Fund, an open end Gilt Scheme.

TLF Taurus Liquid Fund, an open end liquid scheme.

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TSBF Taurus Short Term Bond Fund, an open end debt scheme

Trust Deed The Trust Deed dated August 20, 1993 as amended from time to time.

NAV Net Asset Value of the units of a Scheme as calculated in the manner provided in this SID or as may be prescribed by SEBI Regulations from time to time.

Applicable NAV The Net Asset Value applicable for purchases/redemption/ switches based on the business day and relevant cut-off times on which the application is accepted at an Investor Service Centre

Units The interest of the subscribers in a Scheme which consists of unit representing one undivided share in the assets of a Scheme.

Unitholder/Investor A person who holds units under a Scheme

Business Day A day other than (i) Saturday and Sunday (ii) day(s) on which the money markets are closed/not accessible (iii) a day on which banks in Mumbai and/or RBI are closed for business/clearing (iv) a day on which Stock Exchange, Mumbai and / or National Stock Exchange are closed (v) A day which is a public and/or bank holiday at the Investor Service Centre where the application is received (vi) A book closure period announced by the AMC/Trustee (vii) A day on which sale and redemption of units is suspended by the AMC/Trustee (viii) A day on which normal business cannot be transacted due to bandhs, floods, storms, strikes or such other events as the AMC/Trustee may specify from time to time. The Trustees/AMC reserve the right to change the definition of Business Day. The Trustee/AMC reserve the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres.

NRI/ PIO Non-Resident Indians and Persons of Indian Origin

FIIs Foreign Institutional Investors, registered with SEBI under Securities and Exchange Board of India (Foreign Institutional Investors) Regulations 1995, as amended from time to time

CBDT Central Board of Direct Taxes.

DTAA Double Taxation Avoidance Agreement

AMFI Association of Mutual Funds in India

Gilts / Government Securities As defined under Section 2(b) of the Securities Contract(s) (Regulation) Act, 1956, "Government security" means a security created and issued, whether before or after the commencement of this Act, by the Central Government or a State Government for the purpose of raising a public loan and having one of the forms specified in Clause (2) of Section 2 of Public Debt Act, 1944 (13 of 1944).

Repo/Reverse Repo Sale / Purchase of Securities as may be allowed by RBI from time to time with simultaneous agreement to repurchase / resell them at a later date.

Money Market Instruments Include Treasury Bills, Commercial Papers, Mibor linked instruments Commercial Bills, Government Securities having un-expired maturity upto one year, Call or Notice Money, Certificate of Deposit, Usance Bills, Corporate Debentures, Collateralised Borrowing and Lending Obligation (CBLO) and any other like instruments as specified by RBI/SEBI from time to time.

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E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

It is confirmed that:

(i) the draft Common Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

(ii) all legal requirements connected with the launching of the schemes as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

(iii) the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the schemes.

(iv) the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Date : 24th April, 2009 Sangeeta VermaPlace : New Delhi Company Secretary-cum-

Compliance Officer

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II INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

Taurus Starshare Taurus Discovery Fund Taurus Bonanza Fund


Taurus Ethical Fund

An open end Equity Growth Scheme



An open end Equity Thematic Scheme

An open-end Equity Oriented Scheme

Taurus Tax Shield Taurus Income Fund Taurus Gilt Fund Taurus Liquid Fund Taurus Short Term Bond Fund

An open end Equity Linked Tax Saving

Scheme

An open end Bond Scheme

An open end Gilt Scheme

An open End Liquid Scheme

An open End Debt Scheme

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?

Name of the Scheme : Investment Objective

I) Taurus Starshare : The basic objective of the Scheme is to provide long-term capital appreciation. Emphasis will be on sharing growth through appreciation as well as on distribution of income by way of dividend.

II) Taurus Discovery Fund : The primary objective of the Scheme is to identify and select low priced stocks through price discovery mechanism, which would broadly include:

o To capitalise on available opportunity on growth potential offered by undervalued penny stocks.

o Such stocks being low priced and if dividend paying, decent dividend yield will give desired cushion in the volatile capital market.

o Lower side risk is minimum in such investments.o Many of such cases where investment will be made, may be

turnaround cases, therefore, greater potential for improvement in NAV.

III) Taurus Bonanza Fund : Taurus Bonanza Fund is an Open Ended Growth Scheme. The investment objective is to provide investors long-term capital appreciation. Investments shall be primarily in Equity and Equity related instruments that offer scope for long-term capital appreciation. The Funds will also be invested in debt and money market instruments.

IV) Taurus Infrastructure Fund : To provide capital appreciation and income distribution to unitholders by investing pre-dominantly in equity and equity related securities of the Companies belonging to infrastructure sector, it’s related industries inclusive of suppliers of capital goods, raw materials and other supportive services to infrastructure companies and balance in debt and money market instruments.

V) Taurus Ethical Fund : To provide capital appreciation and income distribution to unitholders through investment in a diversified portfolio of equities, which are based on the principles of Shariah. The scheme may also invest a certain portion of the corpus in money market instruments in order to meet liquidity requirements from time to time.

VI) Taurus Tax Shield : To provide long term capital appreciation over the life of the scheme through investment pre-dominantly in equity shares, besides tax benefits.

VII) Taurus Income Fund : To maximize income through basket of debts, bonds, debentures, Government Securities and money market instruments etc. of varying maturities while maintaining safety and liquidity

VIII) Taurus Gilt Fund : To provide risk free returns to the investors even for a shorter duration

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through investment in securities issued by Central Government or State Government or any security unconditionally guaranteed by Government of India. Investment will also be made in repos and reverse repos.

IX) Taurus Liquid Fund : To generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

X) Taurus Short Term Bond Fund : To generate returns with higher liquidity and low volatility from a portfolio of money market and debt instruments. However, there is no assurance that the investment objective of the scheme will be realised.

However, there can be no assurance that the investment objective of the schemes will be achieved.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? D. WHERE WILL THE SCHEME INVEST? E. WHAT ARE THE INVESTMENT STRATEGIES?

EQUITY SCHEMES

I ) TAURUS STARSHARE

A major portion of the funds of the Scheme will be invested in equity shares, besides convertible debentures, nonconvertible debentures, khokas, public sector bonds and other capital market instruments, debt/non-debt instruments and also in money market instruments. Investments may be acquired through primary or secondary market operations or by way of private placement.

For achieving its objectives, the fund will pursue the policy of diversification of its assets not only among equity, debt and money market instruments but also in terms of industry exposure. The fund will monitor rigorously prudent allocation of assets across different industries.

Under normal circumstances, the Scheme’s investments will be as under:-

Instruments % of Portfolio Risk ProfileMinimum Maximum

Equity & Equity Related Instruments 0% 100% HighDebt Instruments 0% 15% MediumMoney Market & other Assets 0% 10% Low

Investment by the scheme in securitised debt will not normally exceed 50% of the debt component of the scheme.

Investment in fixed income securities will be in securities rated as investment grade by a recognized authority like:* The Credit Rating and Information Services of India Ltd. (CRISIL)* Investment Information and Credit Rating Agency of India Ltd. (IICRA).* Credit Analysis & Research Ltd. (CARE)Further it must be clearly understood that the referred percentages are not absolute, and that they can vary substantially for defensive consolidation in the short run depending upon the Trustees perception as to whether the market is in an overheated state or has fallen well below a level they consider appropriate taking into account the factors prevailing at that time; the intent being to protect the NAV of the Scheme and the investors interests.

The Trustees may from time to time at their absolute discretion review and modify the strategy provided such modification is in accordance with SEBI (Mutual Fund) Regulations.

The portfolio under the Scheme will be diversified and efforts would be made to avoid concentration in a particular industry or group of industries.

The Fund is presently investing surplus funds in CBLO segment.

Trustees may also permit the use of any investment techniques (including derivatives, futures & options, warrants etc.) which may be permitted by SEBI/RBI from time to time.

Asset Allocation Pattern & Review

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The asset allocation pattern under normal circumstances is guided by the Scheme Information Document. The investment objective of any given scheme is derived from the scheme’s investment objective. The asset allocation is reviewed on a continuous basis and dependent upon the given circumstances, the balancing / rebalancing exercise is carried out. The endeavour of such an exercise is based on the primary consideration of maximizing the return to the unitholders while taking the least risks. If the Fund Manager has a definite opinion on the economy for the near future, the portfolio allocations are moderated to take an appropriate decision for maximizing the return to the unitholders.

II) TAURUS DISCOVERY FUND

Investment Pattern and Risk profile

Under normal circumstances, following asset allocation has been stipulated:


Equity & Equity Related Instruments 0% 100% HighDebt Securities (including securitised debt) 0% 20% MediumMoney Market & other Assets 0% 20% Low


Investments in debentures will be restricted to investment grade rated instruments. In case of unrated debt instruments, specific approval of the Board of TAMCO shall be obtained.

Change in Investment Pattern

Notwithstanding what is stated in the above table of investment pattern, the Investment Manager shall have the right to alter the above asset allocation for a short period on defensive considerations keeping in view market conditions and opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages shown above are only indicative and not absolute and they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to protect the interests of the unitholders.

Notwithstanding the foregoing, the Trustees of the Fund may from time to time in its absolute discretion review and modify the investment pattern and strategy provided such modification is in accordance with SEBI Regulations.Definition of Discovery StockDiscovery Stocks may be defined as under:-

i. Those stocks, whose current market price is lower than the face value.ii. Those stocks, whose current market price is lower than the last public offer either by way of IPO or Right Issue.iii. Those scrips, which have not moved as per the movement in BSE Index, but have the potential.iv. Such identified company is now doing well but on account of either initial high price or lack of investors

confidence, current market price is under pressure.v. Following parameters will be kept in mind while identifying such stocks:

Market price/Book value ratio is not very high. Return on capital employed (ROCE) is satisfactory Return on networth (RONW) is positive Equity capital > Rs. 5 crores Dividend paying company

Investments can be considered in those companies, who are able to meet any of the three parameters given above. Trustees, however, reserve the right to modify or alter or add to these criteria depending upon the market conditions.

III) TAURUS BONANZA FUND

Investment Approach

Investment in equities will be made through the secondary and the primary markets and may include common stocks, preferred stocks, right issues, convertible securities and warrants. The Scheme may also invest in securities sold directly by an issuer or acquired in a negotiated transaction.

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Investment in the debt market shall be in fixed income rated securities of investment grade issued by corporates. In case of investment in debt instruments which are not rated, prior approval of the Board of Directors of the Asset Management Company shall be obtained.

Further investment may be made in asset backed securities (securitized debt) excluding mortgaged backed securities.

Investment in Money Market Instruments

The funds will be invested in money market instruments including, but not limited to, treasury bills, commercial paper of public sector undertakings and private sector corporate entities, CBLO, certificate of deposits of scheduled commercial banks and development financial institutions, securities debt, bills of exchange / promissory notes of public sector and private sector corporate entities (co-accepted by banks), money market mutual fund units, GOI Securities with unexpired maturity of one year and other money market securities as may be permitted by SEBI.

Investment shall also be made in GOI / State Government Securities. Such government securities which are supported by : 1) the ability to borrow from the Treasury, 2) sovereign guarantee or of the State Government 3) GOI/State Government in some other way.

Investment Pattern and Risk Profile

The following table describes the risk and investment pattern : Instruments % of Portfolio Risk Profile

Minimum MaximumEquity & Equity Related Instruments 0% 100% HighDebt Instruments - Upto 10% MediumMoney Market & other Assets - Upto 25% Low


Investment shall also be made in foreign equities, debt, money market instruments and the Fund may use any hedging techniques that are permissible or in future may become permissible under SEBI Regulations.

The Trustees may from time to time for a short-term period on defensive consideration modify / alter the investment pattern / asset allocation, the intent being to protect the NAV of the Scheme and protect interest of the unitholders of the Scheme so also to earn reasonable returns on liquid funds maintained for redemption of units without seeking consent of the unitholders.


The asset allocation stated above is indicative and not absolute, and it can vary substantially depending upon the perception of the Investment Manager on the capital market taking into account the factors prevailing at that time, the intent being to protect the NAV of the Scheme and the unitholders’ interest. The Trustees of the Mutual Fund may, from time to time, at their absolute discretion, review and modify the strategy provided such modification is in accordance with the SEBI Regulations.

Policy of Diversification

The Investment strategy will aim to diversify the portfolio to maximize return while maintaining a tolerable level of risk. Since this is essentially a growth Scheme with maximum exposure in equities, under normal circumstances, investment will be made in diverse sectors to create a balanced portfolio of equities and hence minimize the inherent unsystematic risk. The Scheme may also use various hedging products and derivatives from time to time as would be available and permitted by SEBI in an attempt to protect the value of portfolio and enhance unitholders’ interest.

Investment in Debt Securities

a. RegulationsDebt instruments will be rated as investment grade by a credit rating agency authorized to carry such activity under the Act:

Provided that if the debt instrument is not rated, specific approval of the Board of TAMCO shall be taken for investment.

b. Risks

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The Investment Manager will place emphasis on the credit rating of the issuer and therefore will invest in securities that are rated investment grade by a domestic credit rating agency such as CRISIL, ICRA, CARE and any other SEBI approved credit rating agency or in unrated debt securities, which the Investment Manager believes to be of equivalent quality. Where investment in unrated debt securities is sought to be made, the specific approval of the Board of Directors of the AMC, shall be obtained.

IV) TAURUS INFRASTRUCTURE FUND

Infrastructure sector plays an important role in country’s development and GDP growth. India has already negotiated the difficult transition from public infrastructure creation to a market-determined model. An ambitious reform programme initiated involving a shift from a controlled to an open market economy has opened doors for private sector / foreign investment in infrastructure projects such as energy, petroleum, telecommunications, transportation sectors etc. And in the Indian context, removal of regulatory and availability constraints on any product or service, has catalyzed investments, attracted competition and rationalized costs leading to a new growth trajectory. The infrastructure sector in the country is thus poised for accelerated growth in the coming years. There is already momentum in highways, power generation and ports, where a successful track record has fostered a virtuous cycle of more success.

With India rapidly moving on the path to establishing itself as a global sourcing base for manufactured products and gearing up to carve a share of the textile opportunity post-quota removal in 2005, it is imperative that ports be modernized. The macro-level fiscal budget-linked solution for the overdues of SEBs to utilities (NTPC, NHPC), the successful implementation of the Accelerated Power Development & Reforms Programme APDRP) to modernize the overloaded T&D network and the legislation of comprehensive reforms by way of the Electricity Act 2003 all have paved way for large investment in the Power sector. The biggest trigger for the oil & gas sector is the large gas finds. Besides, with the sector put on the reform track beginning with dismantling of Administered Pricing Mechanism APM) in April 2002, competitive pressures are set to intensify and refinery upgradation to meet Euro-II & III fuel norms are a given. Telecom is another sector where significant progress has been made. India is already the fastest growing mobility market in the world.

Infrastructure sector comprises of Energy, Power and Power Equipment, Oil & Gas and related industries, Petroleum and related industries, Coal, Mining, Aluminium & other Metal Industries, Steel & Steel Utilities, Ports, Housing & Banking & Financial Services, Healthcare & related industries, Transportation, Ports, Telecommunications, Capital goods, realty sector, Industrial Manufacturing like Engineering, Construction and Construction related industries, Cement, Earth Moving Equipments. Please note that the above list is only indicative and the Investment Manager may add such other sector/group of industries which broadly satisfy the category of infrastructure industries.

Investment Strategy

The corpus of the Scheme will be primarily invested in equity and equity related securities of the companies in the Infrastructure Sector. The Scheme may also invest a small portion of its corpus in money market instruments to manage its liquidity requirements. All companies selected will be analysed taking into account the business fundamentals like nature and stability of business, prospects of future growth and scalability, financial discipline and returns, valuations in relation to broad market and expected growth in earnings, the company’s financial strength and track record.

The fund may also invest upto 25% of the corpus of the scheme in ADR/GDR and equities of listed overseas companies with a market capitalisation of at least $1 Billion at the time of investment. These investments will be made in line with the RBI and SEBI guidelines and will be within the limits prescribed by SEBI/RBI from time to time.

Stock Selection Strategy

The Fund will select stocks of companies engaged in the area of infrastructure across the following industries; - Banking and Financial Services- Capital Goods- Cement- Coal- Construction- Earth Moving Equipments- Energy- Engineering- Housing

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- Metals- Oil and Oil Related Sectors- Petroleum- Ports- Power and Power Equipments- Telecommunications- Realty - Transportation

Please note that the above list is only indicative and not exhaustive. The list can undergo changes based on future reforms and developments. The Investment Manager may add such other sector/group of industries which broadly satisfy the category of infrastructure sector.

The Scheme will invest primarily in equity / equity related instruments of the companies in infrastructure sector. The Scheme may also invest in debt instruments such as non convertible portion of Convertible Debentures (Khokas), Non Convertible Debentures, Securitised Debt, Secured Premium Notes, Zero Interest Bonds, Deep Discount Bonds, Floating Rate Bonds / Notes, Government securities and Money Market Instrument like Call Deposit, Repos, Commercial Paper, Certificate of Deposit, Treasury Bills, etc. for providing ongoing liquidity & preservation of capital in a bear market.

However, the weightages of debt & equity may be changed in exceptional circumstances, depending on market conditions. The main aim of such steps will be to protect the interests of the unitholders. The Scheme will emphasis well managed, high quality companies with above average growth prospects that can be purchased at a reasonable price. Typically these companies will be highly competitive, with a large and growing market share. In selecting specific stocks, the Asset Management Company will consider and evaluate amongst various criteria network, consistent growth, strong cash flows, high return on capital etc. Investment in fixed income securities (wherever possible) will be mainly in investment grade listed / unlisted securities. In case of investment in debt instruments that are not rated, specific approval of the Board of AMC and Trustee Company will be taken.

The Scheme will purchase securities in the public offerings and rights issues, as well as those traded in the secondary markets. On occasions, if deemed appropriate, the Scheme will invest in securities sold directly by the issuer, or acquired in a negotiated transaction or issued by was of private placement. The moneys collected under this scheme shall be invested only in transferable securities.

Investment Pattern and Risk Profile

Under normal circumstances, the total assets of the Scheme, shall (after providing for all ongoing expenses) generally be invested as under:


Equity & Equity Related Instruments 70% 100% HighDebt & Money Market Instruments 0% 30% Low to Medium

* Investment by the scheme in securitised debt, will not normally exceed 50% of the debt component of the scheme.

Investment in derivative instruments may be done for hedging and Portfolio balancing.

The Trustee Company may from time to time for a short term period on defensive consideration invest upto 100% of the funds available in Money Market Instruments, the primary motive being to protect the Net Asset Value of the Scheme and protect unitholders interests so also to earn reasonable returns on liquid funds maintained for redemption/repurchase of units. The Trustee Company may from time to time for a short term period under exceptional circumstances on defensive consideration modify/ alter the investment pattern / asset allocation the intent being to protect the Net Asset Value of the Scheme & Unitholders’ interests without seeking consent of the unitholders.


Subject to the SEBI Regulations, the asset allocation pattern indicated above under (2) may change from time to time, depending on liquidity considerations or on account of high levels of subscriptions or redemptions relative to fund size, or upon considerations that optimise returns of the Scheme through investment opportunities or upon various defensive considerations including market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the

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intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and only for defensive consideration.

V) TAURUS ETHICAL FUND

Under normal circumstances, the asset allocation pattern will be as under:-


Equity & Equity Related Instruments 80% 100% HighMoney Market Instruments 0% 20% Low

Normally, the funds will be fully invested in equities save for an amount to enable redemption of units, efficient management of the funds in relation to strategic objectives and other purposes which may be reasonably regarded as ancillary to the investment objective of the Scheme.

Investment in foreign securities will not exceed 20% of the corpus.

Pending deployment of funds of the scheme in terms of investment objective of the Scheme, the Mutual Fund can invest the funds of the scheme in the defined money market instruments instead of short term deposits of scheduled commercial banks.

Changes in Investment pattern

Subject to SEBI Regulations, the asset allocation pattern indicated above may change from time to time, depending on liquidity considerations or on account of high levels of subscriptions or redemptions relative to fund size, or upon considerations that optimise returns of the Scheme through investment opportunities or upon various defensive considerations including market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and only for defensive consideration.

Where will the Scheme Invest?

The Corpus of the scheme will be invested in the listed securities on BSE/NSE or the foreign equities which are based on the principles of Shariah after proper fundamental and technical analysis by the Research Team.

Recently, Standard & Poor’s has also launched a Shariah Index for the Indian Market viz. S&P CNX 500 Shariah . At present there are 209 companies in S&P CNX 500 Shariah Index .

The Fund has decided to benchmark the performance of the scheme based on S&P CNX 500 Shariah Index .

Shariah Board

The AMC will be assisted by Taqwaa Advisory and Shariah Investment Solutions Pvt. Ltd. (TASIS) on the Shariah Compliance. TASIS which has an independent professionally managed Shariah Board has one scholar on its Board i.e. Mufti Barkatullah Abdul Kadir whose profile is as under:

Mufti Barkatullah is a prominent Shariah scholar with a strong background in economics and finance. He received an MPhil in Informatics from the University of Wales (UK). He holds BSc Honours in Economics from London and has also received his Mufti (Diploma) in Islamic Law from Darul Ifta, Deoband, India. Trained extensively both in the traditional Islamic and modern Western educational traditions, Mufti has served as Sharia Judge at the Islamic Sharia Council, London. He is a member of the Shariah supervisory boards for several UK based financial institutions such as Islamic Bank of Britain, Alburaq of ABC Bank International (UK), United National Bank, Lloyds TSB, Scottish Widows Investment Partnership Islamic SICAV, Luxembourg and British Islamic Insurance Holdings (UK). He has been a lecturer at Ebrahim Community College, London. As a broadcaster he has a wealth of experience in Islamic financial issues. He received praise from the British Parliament for his immense contribution to Islamic Finance in UK. He has also been awarded for Best Research Thesis in 1992 by Oxford Academy.

Investment Strategies

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The corpus of the Scheme will be invested in the companies which are based on the principles of Shariah whereby, it is not permissible to acquire the shares of Companies providing financial services on interest like conventional banks, insurance companies or the companies involved in some other business not approved by Shariah, such as companies manufacturing, selling or offering liquors, meat, or involved in gambling, night club activities, pornography etc. The Fund Manager and his team will identify the stocks for investment from the stock universe available from S&P CNX 500 Shariah which is the benchmark index for this scheme and Shariah Board will have no role in stock identification from the given universe.

VI) TAURUS TAX SHIELD

Tax Benefits

Investment upto Rs.1 lac in the scheme is eligible for deduction from income under section as per the Income Tax Act.

Lock-in Period

Libra Tax Shield is a equity linked Tax Saving Scheme. In terms of Income Tax Act 1961, investment in Equity Linked Saving Schemes will have to be kept for a minimum period of 3 years from the date of allotment of units. As such investment made by investors in Libra Tax Shield (a Equity Linked Saving Scheme) for the purpose of availing tax benefit under Section 80 C of the Income Tax Act, would remain locked-in for the period of 3 years from the date of allotment.

Investment Strategy & Investment Pattern

The Asset Management Company will use Modern Investment Management Tools and Techniques for proper selection of securities and devising a diversified portfolio across industries and companies. The objective of investment analysis would be to predict price movements on the stock markets so as to earn risk adjusted returns. Undervalued shares would be identified in order to trade profitably in them.

Fundamental analysis would be carried out to forecast, among other things, future level of economy's gross national product, future sales and earnings for a number of industries and a large number of companies. Eventually such forecast will be converted into estimates of expected returns of specific shares and certain industries and stock market itself.

Technical analysis will be used to detect pattern in price movements to formulate optimum entry and exit points for investments.

The Asset Management Company would endeavour to assess correctly the trends of the stock market so as to shift the portfolio risk in accordance with the market forecast to achieve a higher return.

The investment pattern and risk profile of the Scheme would be as follows :


Equity & Equity Related Instruments 80% 100% HighDebt Instruments 0% 20% MediumMoney Market & other Assets 0% 20% Low


Investments in debentures will be restricted to at least investment grade instruments corresponding to CRISIL rating BBB and above and / or moderated safety grade rated instruments corresponding to ICRA rating LBBB and above/or investment grade rated instruments corresponding to CARE rating CARE BBB and above.

In the case of investments in debt instruments that are not rated, specific approval of the Board of TAMCO will be taken.

The investments made by the Scheme shall be within the parameters stated in SEBI (Mutual Funds) Regulations, 1996.

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The Trustees may from time to time at their absolute discretion review and modify the policy of investments in accordance with SEBI (Mutual Funds) Regulations, 1996.

Asset Allocation Pattern and Review

The asset allocation pattern under normal circumstances is guided by the Offer Document. The investment objective of any given scheme is derived from the schemes investment objective. The asset allocation is reviewed on a continuous basis and depending upon the given circumstances, the balancing/rebalancing exercise is carried out. The endeavor of such an exercise is based on the primary consideration of maximizing the return to the unitholders while taking the least risks. If the Fund Manager has a definite opinion on the economy for the near future, the portfolio allocations are moderated to take an appropriate decision for maximizing the return to the unitholders.

DEBT SCHEMES

A. DEBT MARKET IN INDIA

The Bond market was, and is still heavily weighted in favour of government bonds, whose continuous supply is for meeting the ongoing developmental expenditure of the central and state governments and their agencies. Primary issuance mainly catered to central / state governments and their respective agencies, also indirectly funding government guaranteed bonds. The capital market also caters indirectly to the needs of industrial finance, since specialized development banks are beneficiaries of the regulated allocation. The issuance of corporate debentures is predominantly by way of private placements and large chunk of the balance debts is represented by non-convertible debentures.

Market forces sometimes have hardly any role to play in pricing of bonds. Aggressive allocations from large government owned financial Institutions and PDs paves the way to competitive pricing taking into account the interest rate guidance and liquidity conditions in the market.

The demand principally emanates through household savings, mobilized by the government owned financial system, which has a virtual monopoly in primary resource mobilization. This was achieved through mandatory allocation of assets of institutions, such as commercial banks, insurance companies and provident funds to meet their statutory obligations.

The main characteristics of the financial markets prior to 1991 were:

• Pre-dominance of the government owned financial system• Administered interest rates;• Segmentation of markets between commercial banks and specialized financial institutions, by maturity and

instruments;• Varying freedom, in choosing assets liability mix and management thereof; and• Extensive control on the issuance of debt securities and equity by the private corporate sector.

Since then, significant changes have been made in all the above areas. The investor base has now been broadened, particularly after development of secondary markets.The issuance of government securities, instead of being passively used, for funding fiscal deficit, is becoming an instrument of internal debt management, monetary management and short term liquidity management.

With the emergence of credit rating agencies and adherence of market driven issuance, the Indian debt market is poised to grow. On the supply side, public sector undertakings, private corporate units and financial institutions constitute a major class of good quality issuers, who will access the bond market. The process of fostering greater integration among various segments of the financial markets, which began with the financial sector reforms initiated in 1991-92, gained further momentum in 1996-97. As a result, the role of financial markets is increasingly becoming critical, in a variety of ways i.e. through mobilization and allocation of saving in the economy, in transmitting signals for policy and in facilitating liquidity management, which is consistent with overall short / medium-term policy objectives.The Indian debt market has a secondary market turnover of around Rs3000 crs to Rs 15000 crs on a given day. As on 27th April 2009 the total outstanding in the government bond market is Rs 1522475 crs. The trading in Bond market has been increasing, the average daily trading volume on WDM segment is Rs. 3000 crore.

The Bombay Stock Exchange and National Stock Exchange have both wholesale and retail debt markets to encourage wider participation of all classes of investors. With this, given the liquidity and credit risk arising from this market, retail investors will have an option to choose highly rated bonds floated by financial institutions and good corporate. RBI not only is keen to improve the efficiency of the bond and money market but also in particular wants

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to increase liquidity in the system, broaden investor base and integrate money, capital and foreign exchange markets.

The average yield on Bonds and Debentures depends on the rating of the paper. The AAA rated papers of 5 years maturity are available at an average yield of 7.75-8.00% per annum, whereas higher yield papers are available with low credit ratings. After recent inflow of money from foreign funds, the situation has taken a positive turn with decline in interest rates in overseas markets and better returns for foreign investors in Indian papers. Due to decline in the interest rates, source of finance like Commercial Paper/ Mibor linked paper has become quite active.

The Fund Manager would be wise to employ an interest rate anticipation approach and clear understanding of Indian Business cycle, Fiscal and Monetary Policy to forecast medium and long-term interest rate movements, which in turn will help to assess various companies and their creditworthiness.

B. GILT MARKET IN INDIA

The Gilt market i.e. Government securities market constitutes the main segment of Indian Debt Market. This market not only provides resources to the Government for meeting its needs - short term as well long term, but also acts as the benchmark for pricing corporate papers of varying maturities. The Government Securities Market includes the dated securities issued by Central and State Governments and T-bills of all maturities.

Investments in Gilt markets are highly liquid and carry zero credit risk. The gilts market in India is the market for government and semi government securities which are issued by government through RBI. RBI is the Manager underwriter and Registrar to the issues. Auctions are held to sell government securities and the same are allotted to those whose bids are above a reasonable level. Primary market dealers like SBIDFHI Gilts Limited, ICICI Securities, PNB Gilts Ltd., FIs, Banks and Mutual Funds are the main bidders in the primary markets. The secondary market consists of players like Primary Dealers, FIs, Banks and Mutual Funds. Public Debt office of RBI registers the securities in the names of holders. RBI acts as a depository and maintains Subsidiary General ledger (SGL) accounts. Deals are compulsorily entered on NDS system and settled through CCIL.

Although the corporate bond market offers higher yields, gilts compare very well on a risk-adjusted basis due to the illiquidity factor in corporate debt. No stamp duty is attached to Gilts and are dealt mainly through SGL route. These securities are coupon bearing instruments traded at a premium / discount to the face value. Typical maturities range from 14 day T-bills to 30 year bonds, straddling the entire range of the yield curve. Yields range from 3.75% for the 2009 paper to 7.50% for 2039 paper. Gilt Investments, however, can suffer from capital losses due to fluctuations on account of interest rate movements.

DEBT SCHEMES

I) TAURUS INCOME FUND

The scheme will adopt “flexibility approach” for making investments in the complete basket of debt and money market instruments. This “flexibility approach” will ensure adequate adjustment to the portfolio to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits.

Under normal circumstances, the Scheme’s investment pattern will be as under:


Debt Instruments 0% 100% MediumMoney Market Instruments 0% 100% LowSecuritised Debt & Other Assets 0% 50% Low to Medium

However, subject to Regulation, the asset allocation may change from time to time keeping in view market conditions, market opportunities, applicable regulations and economic factors i.e. if the situation demands, the entire investments may be either in debt instruments or money market instruments at any particular point of time.

Further as stated above, under the following circumstances, majority of the entire portfolio will consist of money market instruments;

1. Uncertainties in the securities market2. War like situation3. Before announcement of major policies4. Receipt of large inflows but corresponding good quality securities not available at attractive prices5. Expected heavy redemption6. To avoid loss due to expected adverse interest rate movements

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7. To take advantage of intermediate market movements by selling securities and then re-buying them after technical correction

It must be clearly understood that the above pattern is only indicative and can vary substantially depending upon the perception of the Fund Manager, the intention being at all times to protect the interests of the unitholders.

Apparently, with change in the investment pattern, Fund Manager gets wider opportunities for investing the surplus funds in various instruments. The changed investment pattern will also give required flexibility to the Fund Manager to make investments according to the situation prevailing in the market from time to time.


Notwithstanding what is stated in the above table of investment pattern, the Investment Manager shall have the right to alter the above asset allocation for a short period on defensive considerations keeping in view market conditions and opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages shown above are only indicative and not absolute and they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to protect the interests of the unitholders.

Notwithstanding the foregoing, the Trustees of the Fund may from time to time in its absolute discretion review and modify the investment pattern and strategy provided such modification is in accordance with SEBI Regulations.

Investment Strategy

The Corpus of the Scheme, subject to the Regulations, will be invested in any (but not exclusively) of the following debt and money market instruments;

i. Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

ii. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iii. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central / State Government guarantee.

iv. Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips etc.

v. Debt obligations of banks (both public and private sector) and development financial institutions.

vi. Money market instruments permitted by SEBI / RBI having maturities of upto one year and more than one year.

vii. CBLO or alternative investments may be provided by RBI to meet the liquidity requirements.

viii. Commercial papers and Commercial bills.

ix. Certificate of Deposits.

x. Securitised Debt obligations. Investment in such securities will not exceed 25% of the net assets of the Scheme or such other limit as may be decided by the Trustees from time to time.

xi. The non-convertible part of convertible securities.

xii. Any other domestic fixed income securities including Structured Obligations.

Any international fixed income securities.

Usance bills

Pass through, Pay through or other Participation Certificates representing interest in a pool of assets including receivables.

Any other like instruments as may be permitted by RBI / SEBI from time to time.

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The securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. Investments will be made through secondary market purchases, initial public offers, other public offers, placements, right offers (including renunciation) and negotiated deals.

The AMC retains the flexibility to invest across all the securities / instruments in debt and money market.

Scheme’s investments would be in accordance with the features of the scheme and SEBI Regulations. The Fund will strive to assess risk of the potential investments in terms of credit risk, interest rate risk and liquidity risk.

II) TAURUS GILT FUND

Investment Strategy

Keeping in view the objective to generate risk free return, investment would be made solely in securities issued by Central Government / State Government (including but not limited to the Coupon Bearing Bonds, Zero Coupon Bonds and Treasury Bills). To ensure total safety of unit capital, the fund will not invest in any other securities, such as equity shares, debentures or bonds issued by any other entity.

In case of State Government Securities, investment would be made in securities of those States whose economy is graded as investment grade, by recognized rating agencies like CRISIL, ICRA, CARE AND DCR DUFF AND PHELPS.

The Government securities will be purchased in the public offering as well as those traded in the secondary markets. At times, Fund may also participate in auction of Government securities. The Fund will seek to underwrite issuance of Government securities as and when permitted by SEBI / RBI subject to other applicable rules from time to time.

For the purpose of providing on-going liquidity and preservation of capital, some amount of Scheme’s investment may be in strips of Government securities, repos and cash on call or other alternative investment for call money market as may be provided by RBI to meet the liquidity requirement.

Further, Fund may also make the investment in the Government securities issued by G-7 Nations provided that such securities are considered as Investment Grade and as and when permitted by RBI and SEBI, under the guidelines for the Gilt Fund.

Investment Composition and Risk Profile

(i) Risk Profile

The degree of risk will depend on the maturity and category of the investment. The following table indicates the risk profile of the investment by the Scheme:

Balance Maturity Risk ProfilePrice Risk Credit Risk

Less than 1 year Lowest ZeroBetween 1 to 5 years Lower ZeroMore than 5 years Low ZeroSecurities held under Reverse Repos Zero Very low

The risk profile described above indicates that the risk of a portfolio of Government Securities is invariably lower than of a portfolio of investments of other types of securities. Since almost the entire portfolio will be invested in Government Securities, they do not pose any Credit Risk and are usually referred to as risk-free securities.

(ii) Investment Composition

Under normal circumstances, the Scheme’s investment pattern will be as under:


Government of India dated Securities & Treasury Bills 50% 100% MediumState Government dated Securities 0% 25% HighMoney Market Instruments like CBLO/repos/reverse repo or any other instruments provided by RBI in future Other Asset

0% 30% Low

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The above percentages are only indicative and not absolute. Subject to the Regulations and Guidelines of RBI, the above asset allocation may change from time to time keeping in view the market conditions, opportunities, applicable regulations, political and economic factors. As such investment pattern can vary substantially depending on the perception of the Investment Manager and to protect the interests of the unitholders. Such changes will be made for a short term on defensive considerations. In such a scenario, investment pattern can be as under;

Sl. No. Investment Type Investment Allocation1. Government of India dated Securities & Treasury Bills 0-100%2. State Government dated securities 0-50%3. Money Market Instruments or any other instruments provided by

RBI in future 0-100%

Under the following circumstances, majority of the entire portfolio will consist of money market instruments;

1. Uncertainties in the securities market 2. War like situation

3. Before announcement of major policies4. Receipt of large inflows but corresponding good quality securities not available at attractive prices5. Expected heavy redemption6. To avoid loss due to expected adverse interest rate movements7. To take advantage of intermediate market movements by selling securities and then re-buying them after technical correction8. Funds not sufficient to buy a security.

(iii) Change in Investment Pattern

Subject to the Regulations and the guidelines of RBI, the above asset allocation pattern may change from time to time keeping in view the market conditions, opportunities, applicable regulations, political and economic factors. As such investment pattern can vary substantially depending upon the perception of the Investment Manager and to protect the interests of the unitholders. Such changes will be made for a short term on defensive considerations.

Liquidity Support from RBI

Being a Scheme dedicated exclusively to investments in Government securities, Taurus Gilt Fund will be eligible to avail liquidity support upto 20% of the outstanding value of its investments in Government securities (as at the close of business on the previous working day), from Reserve Bank of India under its Guidelines issued vide letter, IDMC No. 2741/03.01.00/95-96 dated April 20, 1996. Liquidity support under these guidelines is available through reverse repurchase agreements in eligible Central Government dated securities and Treasury Bills of all maturities.

III) TAURUS LIQUID FUND


Instruments % of Portfolio Risk ProfileRepo/Reverse Repo/CBLO 0-100% LowMoney Market Instruments (Mibor Linked Instruments, T-Bills, CPs, CDs) and/or other short term debt instruments (Floating Rate Notes, Short Tenor NCDs, PTCs and / or Less than 1 year maturity G-Secs.

0-100% Low

Securitised debt upto 40% of the corpus

Derivatives may be used upto 50% of the Scheme’s net assets to hedge in order to protect the interest of the unitholders of the Scheme.

The AMC retains the option to alter the asset allocation depending on liquidity considerations or on account of high levels of subscriptions or redemptions relative to the fund size, or upon considerations that optimize returns of the Scheme through investment opportunities or upon various defensive regulations and political and economic factors. In addition, as part of the investment process, the Investment Committee of the AMC will conduct a periodic review of the asset allocation and may suggest rebalancing of the portfolio.

Further, as per SEBI circular SEBI/IMD/CIR No.13/150975 / 09 dated January 19, 2009, the scheme will have the following characteristics with regard to its portfolio;

The ‘liquid fund schemes and plans’ shall: 27


i) With effect from February 01, 2009 make investment in /purchase debt and money market securities with maturity of upto182 days only.

ii) With effect from May 01, 2009, make investment in /purchase debt and money market securities with maturity of upto 91 days only.

Explanation:

a. In case of securities where the principal is to be repaid in a single payout the maturity of the securities shall mean residual maturity.

In case the principal is to be repaid in more than one payout then the maturity of the securities shall be calculated on the basis of weighted average maturity of security.b. In case of securities with put and call options (daily or otherwise) the residual maturity of the

securities shall not be greater than 182 days w.e.f February 01, 2009 and 91 days w.e.f May 01, 2009.c. In case the maturity of the security falls on a non-business day then settlement of securities will take place on the next business day.

Inter-scheme transfers of securities having maturity upto 365 days and held in other schemes as on February 01, 2009 shall be permitted till October 31, 2009. With effect from November 1, 2009 the requirements stated at paragraph 4 (ii) above shall apply to such inter-se scheme transfers also.

Investment Strategy

The fund management team will endeavor to maintain a consistent performance in the scheme by maintaining a balance between safety, profitability and high liquidity aspects of various investments. The fund manager will try to achieve an optimal risk return balance for management of the fixed income portfolios.

The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc. While they cannot be done away with, they can be minimized by diversification and effective use of hedging techniques. No investment shall be made in foreign debt securities including foreign securitised debt.

The fund management team will take an active view of the interest rate movement by keeping a close watch on various parameters of the Indian economy, as well as developments in global markets.

Investment views / decisions will be taken on the basis of the following parameters:

1. Prevailing interest rate scenario2. Quality of the security / instrument (including the financial health of the issuer)3. Maturity profile of the instrument4. Liquidity of the security5. Growth prospects of the company / industry6. Any other factors in the opinion of the fund management team

The Fund Management team proposes to use analytical risk management tools like VAR / convexity/ modified duration for effective portfolio management.


Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, depending on liquidity considerations or on account of high levels of subscriptions or redemptions relative to fund size, or upon considerations that optimise returns of the Scheme through investment opportunities or upon various defensive considerations including market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and only for defensive consideration.

IV) TAURUS SHORT TERM BOND FUND



Money market & debt instruments which have residual maturity and repricing tenor not exceeding one year

50% 100% Low

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Debt Instruments which have residual and repricing tenor exceeding one year *

0% 50% Low to Medium

Debt instruments may include securitized debt upto 50% of net assets. Derivatives may be used upto 50% of the scheme’s net assets to hedge and portfolio balancing in order to protect the interest of the unitholders.


Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, depending on liquidity considerations or on account of high levels of subscriptions or redemptions relative to fund size, or upon considerations that optimise returns of the Scheme through investment opportunities or upon various defensive considerations including market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and only for defensive consideration.

Where will the Scheme Invest?

The Investment Manager’s primary goal is to seek to generate a reasonable return while assuming low risk and concurrently ensuring a high degree of liquidity in the portfolio of the Scheme.

The instruments available in Indian Debt Market are classified into two categories, namely Government and Non-Government debt. The following instruments are available in these categories:

A] Government Debt

Central Government Debt Treasury Bills Dated Government Securities Coupon Bearing Bonds

• Floating Rate Bonds• Zero Coupon Bonds

State Government Debt• State Government Loans• Coupon Bearing Bonds

B] Non-Government Debt

Instruments issued by Government Agencies and other Statutory Bodies• Government Guaranteed Bonds• PSU Bonds

Instruments issued by Public Sector Undertakings Commercial Paper PSU Bonds

• Fixed Coupon Bonds• Floating Rate Bonds• Zero Coupon Bonds

Instruments issued by Banks and Development Financial Institutions• Certificates of Deposit• Promissory Notes• Bonds

Fixed Coupon Bonds Floating Rate Bonds Zero Coupon Bonds

Instruments issued by Corporate Bodies• Commercial Paper• Non-Convertible Debentures

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Fixed Coupon Debentures Floating Rate Debentures Zero Coupon Debentures

Activity in the Primary and Secondary Market is dominated by Central Government Securities including Treasury Bills. These instruments comprise close to 50% of all outstanding debt and close to 75% of the daily trading volume on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited.

In the money market, activity levels of the Government and Non-Government Debt vary from time to time. Instruments that comprise a major portion of money market activity include,

CBLO (Collateralised Borrowing & Lending Obligations) Treasury Bills Government Securities with a residual maturity of < 1 year Commercial Paper Certificates of Deposit

Apart from these, there are some other options available for short tenure investments that include MIBOR linked debentures with periodic exit options and other such instruments. Though not strictly classified as Money Market Instruments, PSU / DFI /Corporate paper with a residual maturity of < 1 year, are actively traded and offer a viable investment option.

Investment Strategy

This scheme is meant for investors to deploy their funds for a short period of time. The fund will be managed according to the investment objective, thereby seek to generate reasonable returns commensurate with low risk. The scheme will invest in money market and other debt securities and shall maintain high liquidity for the purpose of meeting the liquidity requirements of the investors.

The credit quality of the portfolio will be maintained and monitored using in-house research capabilities as well as inputs from external sources such as independent credit rating agencies. The investment team will primarily use a top down approach for taking interest rate view, sector allocation along with a bottom up approach for security/ instrument selection. The bottom up approach will assess the quality of security/instrument (including the financial health of the issuer) as well as the liquidity of the security. Investments in debt instruments carry various risks such as interest rate risk, reinvestment risk, credit risk and liquidity risk etc. Whilst such risks cannot be eliminated, they may be minimized through diversification and effective use of hedging techniques.

The Scheme may invest in fixed income derivatives instruments like forward rate agreements, interest rate swaps etc. to the extent permitted under and in accordance with the applicable Regulations, including for the purposes of portfolio hedging and portfolio balancing to optimize the returns. Hedging does not mean maximization of returns but only attempts to reduce risk that may be inherent in the investment.

FEATURES COMMON TO ALL SCHEMES

i) Borrowing by the Mutual Fund

The Schemes may borrow from any body - corporate including TAMCO, Sponsor and Commercial Banks, upto a maximum of 20% of the net assets of the Scheme for a maximum duration of 6 months, in order to meet the temporary liquidity needs of the Schemes, for the purpose of re-purchase/redemption or payment of interest or dividend to the unitholders, as per clause 44(2) of SEBI (Mutual Fund) Regulations, 1996. Fund had borrowed Rs.2.5crores from sponsor for 2 days in the year 2006-07 without any interest to meet temporary liquidity need under Taurus the Starshare scheme.

ii) Investment in Securitised Debt

The Schemes can also invest in securitised debt. Securitisation essentially means buying up the receivables of an organization and then issue of securities against it to the investors. These securities can then be listed on stock exchanges and traded. The Schemes, to avoid any risks, will invest in securitised debt of only triple ‘A’ or double ‘A’ rated companies within the limits specified in the Investment Pattern.

iii) Stock Lending by the Schemes

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Subject to Regulations and the applicable guidelines issued by SEBI, vide their circular letter no. MFD/CIR/01/047/99 dated February 10, 1999, the Fund may engage in Stock Lending. Stock Lending is one of the means of earning additional income for the Schemes. There are, however, some risks associated with this activity. The risk could consist of the failure of another party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary.

Net assets that may be deployed in stock lending will be within the SEBI Regulations.

iv) Portfolio Turnover

“Portfolio Turnover” is the term used by any Mutual Fund for measuring the amount of trading that occurs in a Scheme’s portfolio during the given period. All the schemes being open ended schemes, it is expected that there would be a number of subscriptions and repurchase on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. However, a high turnover would not significantly affect the brokerage and transaction costs.

The Fund will endeavor to balance the increased cost on account of higher portfolio turnover with the benefits derived thereof. A high portfolio turnover rate is not necessarily a drag on portfolio performance and may be representative of arbitrage opportunities that exist for scrips / securities held in the portfolio rather than an indication of a change in Fund view on a scrip, etc.v) Investments in Derivative Instruments

The Fund may invest in derivatives instruments such as Futures, Options, Forward Rate Agreements (FRAs) & Interest Rate Swaps (IRS) or such other instruments as may be permitted under the Regulations. The use of derivatives will only be done for hedging and portfolio balancing in accordance with the SEBI (Mutual Funds) Regulations and within the parameters approved by the Trustee Company.

The Scheme may use techniques and instruments such as trading in derivative instruments to hedge the risk of fluctuations in the value of the investment portfolio. A derivative is an instrument whose value is derived from the value of one or more of the underlying assets which can be commodities, precious metals, bonds, currency, etc. Common examples of Derivative instruments are Interest Rate Swaps, Forward Rate Agreements, Futures, Options, etc. The Scheme may write (sell) and purchase call and put options in securities in which it invests and on securities indices based on securities in which the scheme invests. Through the purchase and sale of futures contracts and related options on those contracts, the Fund would seek to hedge against a decline in securities owned by the Fund or an increase in the prices of securities which the Fund plans to purchase. The Fund would sell futures contracts on securities indices in anticipation of a fall in stock prices, to offset a decline in the value of its equity portfolio. When this type of hedging is successful, the futures contract increase in value while the Fund’s investment portfolio declines in value and thereby keep the Fund’s net asset value from declining as much as it otherwise would. Similarly, when the Fund is not fully invested, and an increase in the price of equities is expected, the Fund would purchase futures contracts to gain rapid market exposure that may partially or entirely offset increase in the cost of the equity securities it intends to purchase (short sale).

Trading in Derivatives

The Fund may invest in derivatives instruments such as Futures, Options, Forward Rate Agreements (FRAs) & Interest Rate Swaps (IRS) or such other instruments as may be permitted under the Regulations. The use of derivatives will only be done for hedging and portfolio balancing in accordance with the SEBI (Mutual Funds) Regulations and within the parameters approved by the Trustee Company.

The Scheme may use techniques and instruments such as trading in derivative instruments to hedge the risk of fluctuations in the value of the investment portfolio. A derivative is an instrument whose value is derived from the value of one or more of the underlying assets which can be commodities, precious metals, bonds, currency, etc. Common examples of Derivative instruments are Interest Rate Swaps, Forward Rate Agreements, Futures, Options, etc. The Scheme may write (sell) and purchase call and put options in securities in which it invests and on securities indices based on securities in which the scheme invests. Through the purchase and sale of futures contracts and related options on those contracts, the Fund would seek to hedge against a decline in securities owned by the Fund or an increase in the prices of securities which the Fund plans to purchase. The Fund would sell futures contracts on securities indices in anticipation of a fall in stock prices, to offset a decline in the value of its equity portfolio. When this type of hedging is successful, the futures contract increase in value while the Fund’s investment portfolio declines in value and thereby keep the Fund’s net asset value from declining as much as it otherwise would. Similarly, when the Fund is not fully invested, and an increase in the price of equities is expected,

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the Fund would purchase futures contracts to gain rapid market exposure that may partially or entirely offset increase in the cost of the equity securities it intends to purchase (short sale).

Example 1. Hedging against an anticipated rise in equity prices.

The scheme has a corpus of Rs.100 crores and has invested Rs.85 crores in equity and still has a cash of Rs.15 crores available to invest. The Fund may buy index futures of a value of Rs.15 crores. The scheme may reduce the exposure to the future contract by taking an offsetting position as investments are made in the equities the scheme wants to invest in. Here, if the market rises, the scheme gains by having invested in the index futures.

Event Gain/(Loss) from derivative position

Gain/(Loss) from cash market position

Overall Gain/(loss) to Schemes

5% rise in equity price 15*5% = Rs.0.75 crs 85*5% = Rs.4.25 crs Rs.5 crores

5% fall in equity price 15*5% = (Rs.0.75crs) 85*5% = (Rs.4.25 crs) (Rs.5 crores)

Example 2:- Hedging against anticipated fall in equity prices:-

If the Fund has a negative view on the market and would not like to sell stocks as the market might be weak, the scheme of the Fund can go short on index futures. Later, the scheme can sell the stocks and unwind the future positions. A short position in the future would offset the long position in the underlying stocks and this can curtail potential loss in the portfolio.

For eg. the scheme has a corpus of Rs.100 crores and is fully invested in equities. If fund manager wishes to reduce the equity exposure to Rs. 80 crores in a short time, he would sell index future contracts of Rs. 20 crores.

Event Gain/(Loss) from derivative position

Gain/(Loss) from cash market position

Overall Gain/(loss) to Schemes

5% fall in equity price 20*5% = Rs.1 cr 80*5% = (Rs.4.00 crs) (Rs.3 crores)

5% rise in equity price 20*5% = (Rs.1cr) 80*5% = Rs.4.00 crs Rs.3 crores

Example 3 : Use of IRS

Assuming the Scheme is having 10% of the portfolio in cash. The fund manager has a view that the interest rate scenario is soft and call rates are unlikely to spurt over the next three months. The fund manager would therefore prefer to receive a higher rate of return on his cash, which he is lending in the overnight call market. In other words, he would like to move to a 91 days fixed interest rate from overnight floating rate.

1. Say Notional Amount : Rs. 2 crores2. Benchmark : NSE MIBOR3. Tenor : 91 Days4. Fixed Rate : 10.25%5. At the end of 91 days;6. The Scheme pays : compounded call rates for 91 days is 9.90%7. TMF receives : Fixed rate at 10.25% for 91 days.

In practice, however the difference of the two amounts is settled. Here the Scheme receives Rs. 20000000 x 0.35% x91 / 365 = 17452. The players in IRS are scheduled commercial banks, primary dealers, corporate, mutual funds and All India Financial Institutions.

Interest Rate Swap (IRS)

All swaps are financial contracts, which involves exchange (swap) of a set of payments owned by one party for another set of payments owned by another party, usually through and intermediary (market maker). An IRS can be defined as a contract between two parties (Counter Parties) to exchange, particular dates in the future, one series of cash flow, (fixed interest) for another series of cash flows (variable or floating interest) in the same currency and on the same principal for an agreed period of time. The exchange of cash flows need not occur on the same date.

Forward Rate Agreements (FRA)

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A FRA is an agreement between two counter parties to pay or to receive the difference between an agreed fixed rate (the FRA rate) and the interest rate prevailing on a stipulated future date, based on a notional amount, for an agreed period. In short, in a FRA, interest rate is fixed now for a future period. The special feature of FRAs is that the only payment is the difference between the FRA rate and the Reference rate and hence are single settlement contracts. As in the case of IRS, notional amounts are not exchange.

The Scheme will use derivative instruments for the purpose of hedging and portfolio balancing. Hedging does not mean maximisation of returns but only reduction of systematic or market risk inherent in the investment.

Exposure to DerivativesThe Schemes will have a maximum derivative net position of 50% of the net assets of the respective scheme. The limits on equity derivatives exposure per scrip / instruments and derivative positions are given below :

Sr. Derivative Action Description Limit1. Index futures Buy Buy futures against cash to protect

against rising marketTo the extent of cash / equivalents in the portfolio. Max limit (50%) of portfolio

2. Index futures Sell Hedging of portfolio against expected market downturn

Up to (50%) of equity portion of the fund

3. Index futures – Call Buy Buy index calls against cash (existing/ expected to protect against rising market

To the extent of cash/ equivalents in the portfolio.Max. limit (50%) of portfolio

4. Index Options – Call Sell Covered Call Sale-against existing portfolio


5. Index Option – Put Buy Buy index puts to hedge existing portfolio


6. Index Option – Put Sell Covered Put Sale-Possible top sell index puts against existing / expected cash

To the extent of cash/ equivalents in the portfolio.Max. limit (50%) of portfolio;

7. Stock futures Buy Buy against cash to protect against rising share prices

To the extent of cash/ equivalents in the portfolio. Max. limit (50%) of portfolio; per scrip limit (100%)

8. Stock futures Sell Sell against existing stock – Hedging against downside on existing stock in the face of expected volatility in the price

To the extent of the particular scrip holding in the portfolio; per scrip limit (100%)

9. Stock Options – Call Buy Buy against cash to protect against rising share prices

To the extent of cash/ equivalents in the portfolio. Max. limit (50%) of portfolio; per scrip limit (100%)

10. Stock Options – Call Sell Sell against existing stock To the extent of the particular scrip holding in the portfolio; per scrip limit (100%)

11. Stock Option – Put Buy Purchase against existing stock. Hedging against downside on existing stock in the face of expected volatility in the stock price

To the extent of the particular scrip holding in the portfolio; per scrip limit (100%)

12. Stock Options – Put Sell Covered Put Sale against cash To the extent of cash/ equivalents in the portfolio. Max. limit (50%) of portfolio; per scrip limit (100%)

Note : The per scrip limit disclosed above is as a % of the holding in the scrip and not as a % of the portfolio of the Scheme.

Risks associated with Derivatives As and when any Scheme trades in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself.

Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counter party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.

33


Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identify such opportunities. Identification and execution of the strategies to be pursued by a Fund Manager involve uncertainty and decision of a Fund Manager may not always be profitable. No assurance can be given that a Fund Manager will be able to identify or execute such strategies.

The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

vi) Investment in Foreign Securities

In accordance with RBI Policy announced in October 1997 and the guidelines of SEBI announced on September 30, 1999, March 30, 2002, November 07, 2002, April 04, 2003, January 04, 2007, May 14, 2007, September 26,2007 and April 8,2008 (including any subsequent instructions/guidelines that may be issued by SEBI and/or RBI in this regard) on overseas investment. AMC belief that overseas markets offer new investment and portfolio diversification opportunities into multi-market and multi-currency products. The Scheme shall (after obtaining approval from RBI) invest in ADR’s, GDR’s, foreign equity, and other overseas financial assets including securities issued by Governments of the G-7 nations, units of mutual funds managed by overseas Asset Management Companies/ Investment Managers and registered with overseas regulators etc, which in the judgment of the AMC is eligible for investment as part of the Scheme(s) portfolio and is consistent with the investment strategy. The investment in such overseas Financial Assets shall not exceed the limit as may be imposed by SEBI/RBI from time to time and shall be within the investment composition.

SEBI Mutual Funds Regulations permit a mutual fund with prior SEBI and RBI approval to invest in foreign securities upto 10% of it’s net assets as on March, 31 of each relevant year, subject to a maximum limit of US $ 300 million per mutual fund within over all limit of US $ 7 bn.

RBI has vide its letter no. EC.CO.OID.MF. 4914/19.09.233/2001-2002 dated January 30, 2002, has given approval for investments in ADRs/ GDRs and Foreign Debt Securities. The said RBI approval, inter alia, also gives permission to the Mutual Fund to open one or more foreign currency accounts abroad either directly, or through the custodian / sub custodian, to facilitate investments and to enter into/deal in forward currency contracts, currency futures, index options, index futures, interest rate futures/swaps, currency options for the purpose of hedging the risks of assets of a portfolio or for its efficient management provided:

a) the aggregate value and the maturity of such contracts does not exceed the underlying overseas assets under management;

b) the use of such derivatives are meant only for hedging the exposure;c) all fees/premium paid/ payable on such contracts, which will be deemed as capital in nature, are within the

overall limit allowed for investment abroad;d) for hedge contracts where option elements are built in there is no net inflow of premium, direct or implied; ande) in case hedge deals are booked abroad, the overseas entity is the branch of a bank operating in India.

To manage risks associated with foreign currency and interest rate exposure the Fund may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be stipulated by the Regulations/RBI. The Fund may also utilize services of a global custodian and/or consultant to manage such investment, the costs of which would be within the expense limits laid down under SEBI Regulations.

Like domestic securities, investment in overseas financial assets is subject to market risk, credit risk, interest rate risk and liquidity risk as explained in the clause “SPECIAL CONSIDERATION” which exist in the domestic securities.

To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distribution and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations or political circumstances as well as the application to it of other restrictions on investment.

Investments will only be made in instruments denominated in US Dollar, Singapore Dollar, Japanese Yen, Euro or Sterling Pound or in any other liquid currency as may be decided by the AMC from time to time.

Reporting requirements

The AMCs shall send detailed periodical reports to the trustees, which will include the following aspects: 34


i) Performance of investments made in Foreign Debt Securities in various countries.ii) Amount invested in Scheme and any breach of the exposure limit laid down in this Offer Document.

The Board of Directors of AMC and Trustee Company shall offer their comments in the compliance of these guidelines in the bimonthly and half-yearly reports filed with SEBI.

vi) SECURITIES LENDING BY THE MUTUAL FUND

If permitted by SEBI under Regulations/guidelines, the Scheme may also engage in securities lending. The AMC shall comply with all reporting requirements and the Trustee shall carry out periodic review as required by SEBI guidelines. Securities lending means the lending of stock to another person or entity for a fixed period of time, at a negotiated compensation. The securities lent will be returned by the Borrower on expiry of the stipulated period.

The Investment Manager will apply the following limits, should it desire to engage in Securities lending:

o Not more than 20% of the net assets of the Scheme can generally be deployed in securities lending; ando Not more than 5% of the net assets of the Scheme can generally be deployed in securities lending to any

single counter party.

Various risk associated with securities lending, such as counter – party risks, liquidity and other market risks are described under risk factors of this document.

F. FUNDAMENTAL ATTRIBUTES

Following are the fundamental attributes of the Schemes in terms of Regulation 18(15A) of the SEBI (Mutual Fund) Regulations:

i) Type of Scheme

ii) Investment objective

Investment pattern

iii) Terms of Issue

Liquidity provisions such as listing, repurchase, redemption. Aggregate fees and expenses charged to the scheme. Any safety net or guarantee provided.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out unless:

A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

I) Taurus Starshare : BSE 200

II) Taurus Discovery Fund : CNX Midcap Index

III) Taurus Bonanza Fund : BSE 100

IV) Taurus Infrastructure Fund : CNX Infrastructure Fund

V) Taurus Ethical Fund : S&P CNX 500 Shariah

VI) Taurus Tax Shield : BSE 200 35


VII) Taurus Income Fund : Crisil Composite Bond Fund Index

VIII) Taurus Gilt Fund : I Sec Composite Index

IX) Taurus Liquid Fund : Crisil Liquid Fund Index

X) Taurus Short Term Bond Fund : Crisil Liquid Fund Index

Performance comparisons of the Schemes will be made vis-à-vis their respective Benchmark. However, the Schemes’ performance may not be strictly comparable with the performance of the respective Benchmark due to the inherent differences in the constructions of the portfolios. The Trustee/AMC reserves the right to change the Benchmarks for evaluation of performance of the Schemes from time to time in conformity with the investment objectives and appropriateness of the Benchmark subject to the SEBI Regulations, and other prevailing guidelines, if any.

The performances of the schemes of the Mutual Fund are reviewed by the Investment Committee (“IC”) as well as the Board of Directors of the AMC and Trustee periodically. The IC is operational at the AMC level and has majority representation from the senior management of the company. Monthly reports on the performance of the schemes with appropriate benchmark indices are also sent to the Directors of the AMC and Trustee and also with the relative performance of the schemes of other mutual funds schemes in the same category which is placed with the Board of Directors of the AMC and Trustee. Further, in terms of SEBI Circular No.MFD/CIR/16/400/02 dated March 26, 2002 the performance of Schemes will be benchmarked against the performance of their respective Benchmark. The same have been chosen as the benchmark as the asset allocation pattern of the benchmark is in conformity with the declared asset allocation pattern of the schemes in the Scheme Information Document.

The performance of the Schemes compared to its benchmark indices will be reviewed at every meeting of the Board of Directors of the AMC and Trustee and corrective action as proposed will be taken in case of unsatisfactory performance.

In terms of SEBI Circular No.MFD/CIR/01/ 071/02 dated April 15, 2002, the AMC and Trustee may change the benchmark index or select an additional benchmark index after recording adequate justification for carrying out such change. However, change of benchmark index and/or selecting additional benchmark indices would be done in complete compliance of the relevant guidelines of SEBI in this regard.

H. WHO MANAGES THE SCHEME?

Name of the Scheme Name of Fund Manager Age/Qualification Brief ExperienceTaurus Starshare


Taurus Ethical Fund

Mr Mohit Mirchandani 35/B.Com, MMS (Finance), MBA (Finance & Strategy)

Mr. Mirchandani has worked with ING Investment Manager as VP & Portfolio Manager for 6 years, Coca Cola Company, USA as Research Analyst for 2 years, Apple Group As Analyst for 4 years & Anand Rathi Securities as Analyst for 1 year.

Taurus Discovery Fund

Taurus Bonanza Fund

Taurus Tax Shield

Mr. Prasanna Pathak 30/ B.Tech, MBA(Finance)

Mr. Prasanna Pathak has total experience of 6 years 9 months. He was earlier Assistant Fund Manager and Equity Analyst in the Department of Fund Management with UTI AMC for more than 4 years and All India Officer in HLL-Unilever for about 2 years.

36


Taurus Income Fund

Taurus Gilt Fund

Taurus Liquid Fund

Taurus Short Term Bond Fund

Mr. Kumar Nathani, Fund Manager

44/M.Com, Chartered Financial Analyst from ICFAI, Hyderabad

Mr. Nathani has worked in UTI/UTI Mutual Fund from August 1992 to January 2007 in various capacities/ departments as Asstt. Manager (Audit), Manager/ Dealer (Money Market), Asstt. Fund Manager (Income Schemes). He has worked for 1 year earlier as Fund Manager (Income) in Taurus Mutual Fund followed by Fund Manager–PMS in SBI Mutual Fund for 6 months from January to June 2008.

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

Pursuant to SEBI Regulations, the following investment restrictions are applicable to all Schemes:

• Every Mutual Fund will buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction or engage in badla finance. Provided that Mutual Funds shall enter into derivatives transactions in a recognized stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by the Board.

• Every Mutual Fund shall get the securities purchased or transferred in the name of the Fund on account of the concerned Scheme, wherever investments are intended to be of long-term nature.

• A Mutual Fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activities under the SEBI Act. Such investment limit may be extended to 20% of the NAV of a Scheme with the prior approval of the Board of Trustees and the Board of Asset Management Company.

Provided that such limit shall not be applicable for investment in Government securities and money market instruments.

Provided further that investment within such limit can be made in the mortgaged backed securitised debt, which are rated not below investment grade by a credit rating agency, registered with SEBI.

• A Mutual Fund scheme shall not invest more than 10% of its NAV in un-rated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of a Scheme. All such investments shall be made with the prior approval of the Board of Trustees and Board of Asset Management Company.

• The Mutual Fund under all its schemes will not own more than ten percent of any company’s paid up capital carrying voting rights.

• Transfers of investments from one scheme to another scheme in the same Mutual Fund shall be allowed only if:-

a) Such transfers are done at the prevailing market price for quoted instruments on spot basis.Explanation: “Spot basis” shall have same meaning as specified by stock exchange for spot transactions.

b) The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer is made.

A Scheme may invest in another scheme under the same Asset Management Company or any other Mutual Fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the Mutual Fund.

Provided that this clause shall not apply to any fund of funds scheme

No scheme of the Fund shall make any investment in: -

37


a) any unlisted securities of an associate or group company of the sponsor; or b) any securities issued by way of private placement by an associate or group company of the sponsor; orc) the listed securities of group companies of the sponsor, which is in excess of 25% of the net assets.

No scheme of a Mutual Fund shall make any investment in any Fund of Fund scheme.

No scheme of the Fund shall invest more than 10% of its NAV in the equity shares or equity related instruments of any company.

Provided that the limit of 10% shall not be applicable for investments in case of index fund or sector or industry specific scheme.

A Mutual Fund scheme shall not invest more than 5% of its NAV in the unlisted equity shares or equity related instruments in case of open-end scheme and 10% of its NAV in case of close end scheme.

Debentures, irrespective of any residual maturity period (above or below one year) shall attract the investment restrictions as applicable for debt instruments as specified under Clause 1 and 1A of Seventh Schedule to SEBI (Mutual Funds) Regulations 1996.

No mutual fund scheme shall park more than 15% of the net assets in short term deposits of all scheduled commercial banks put together. However, it may be raised to 20% with prior approval of the trustees.

No mutual fund scheme shall park more than 10% of the net assets in short term deposit(s), with any scheduled commercial bank including its subsidiaries.

The AMC may alter these above stated restrictions from time to time to the extent the SEBI Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. The Trustee may from time to time alter these restrictions in conformity with the SEBI Regulations.

All investment restrictions shall be applicable at the time of making investment.

In addition to the above Investment Restrictions following restrictions will also be applicable for Taurus Ethical Fund

Shariah Investment Restrictions In addition to the above investment restrictions as per SEBI Regulations, the funds of the scheme may not be invested in the following as per the present Shariah restrictions;

i) Derivatives, including but not limited to, options, futures and contracts for differences,

ii) Sector Based – Certain businesses offer products and services that are considered unacceptable or non-compliant viz. Gambling, conventional banking, pornography, alcohol etc.

iii) Accounting Based – Financial ratio’s of some companies may violate compliance measures. In terms of financial ratio, the companies having 33% or more debt, where non-operating interest income is greater than 5% of gross revenue, etc., are excluded.

iv) Investment trusts, unit trusts and other collective investment schemes that do not adhere to Islamic Shariah investment principles.

Internal Norms for Investment Restrictions

Fund has policy of Internal Norms for Investment Restrictions also within the overall limit prescribed by SEBI which is being reviewed from time to time, depending upon the market conditions.

Investment by TAMCO in the Schemes

The Asset Management Company (TAMCO) can also invest in any of the schemes, subject to a maximum exposure of 100% of the net worth of TAMCO or as decided by the Board of TAMCO & TITCO from time to time and the AMC shall not be entitled to charge any fees on such investments. It will, however, be subject to 20/25

38


norms i.e. regarding minimum number of investors and single investor holding contained in guidelines issued by SEBI vide circulars dated December 12, 2003 and June 14, 2005.

J. HOW HAS THE SCHEME PERFORMED?

Performance as on 31/03/2009 (absolute returns for a period of one year & Compounded Annualised Returns for a period of more than one year)

Taurus Starshare Return (%)

NAV BSE 200

1 Year -52.33 -40.98

3 Years -10.17 -6.88

5 Years 17.84 9.22

Since Inception 6.16 5.58

Taurus Bonanza Fund - Growth Option

Return (%)

NAV BSE 100

1 Year -43.58 -39.97

3 Years -11.69 -5.75

5 Years 10.87 10.74


39

08-0907-08

06-0705-06

04-05

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Taurus Starshare

TSSBSE 200

Last 5 Financial Years(31st March to 31st March)

Abso

lute

Ret

urns

08-0907-08

06-0705-06

04-05

-60.00%-40.00%-20.00%

0.00%20.00%40.00%60.00%80.00%

100.00%120.00%

Taurus Bonanza Fund

TBFBSE 100


Abso

lute

Ret

urns



Return (%)

NAV CNX MidCap Index

1 Year -67.58 -45.40

3 Years -23.68 -10.70

5 Years 3.97 9.49

Since Inception -2.52 3.03

Taurus Infrastructure Fund -Growth Option

Return (%)

NAV BSE 200

1 Year -50.48 -40.98

Since Inception -23.55 -11.57

40

08-0907-08

06-0705-06

04-05

-80.00%-60.00%-40.00%

-20.00%0.00%

20.00%

40.00%60.00%80.00%


TDFCNX MidCap


Abso

lute

Ret

urns

08-09-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%


TIFBSE 200

Last Financial Year(31st March to 31st March)

Abso

lute

Ret

urns


Taurus Liquid Fund-Growth

Return (%)

NAV Crisil Liquid Fund

1 Year 6.82 8.81



Return (%)

NAV Crisil Liquid Fund Index

Retail InstitutionalSuper

Institutional

Since Inception 2.41 2.50 2.55 2.89

Taurus Short Term Bond Fund scheme was launched in November 2008.

Taurus Income Fund-Growth

Return (%)

NAVCrisil Composite Bond

Fund Index

1 Year 2.87 7.35

3 Years 4.76 6.42

5 Years 4.66 4.52


41

08-09 07-080.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

Taurus Liquid Fund

TLFCrisil Liquid Fund


Abso

lute

Ret

urns

08-0907-08

06-0705-06

04-05

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Taurus Income Fund

TIFCrisil Composite Bond Fund Index


Abs

olut

e Re

turn

s


Taurus Gilt Fund-Growth

Return (%)

NAV I-Sec Composite Index

1 Year 1.92 12.83

3 Years 2.89 9.16

5 Years 1.59 6.26


Taurus Tax Shield-Growth Option

Return (%)

NAV BSE 200

1 Year -24.89 -40.98

3 Years -2.93 -6.88

5 Years 12.78 9.22


42

08-0907-08

06-0705-06

04-05

-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%

Taurus Gilt Fund

TGFI-Sec Com-posite Index


Abso

lute

Ret

urns

08-0907-08

06-0705-06

04-05

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

Taurus Tax Shield

TTSBSE 200


Abso

lute

Ret

urns


III UNITS AND OFFER

This section provides details you need to know for investing in a scheme.

A. New Fund Offer (NFO)

All the schemes included in this Common Scheme Information Document are ongoing schemes and so this section is not applicable.

B. ONGOING OFFER DETAILS

Ongoing Offer PeriodThis is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period.

All the schemes are open end schemes and units are available for sale and repurchase on all business days at the applicable Net Asset Value.

Ongoing price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors.This is the price you need to pay for purchase/switch-in.Example: If the applicable NAV is Rs. 10, entry load is 2% then sales price will be:Rs. 10* (1+0.02) = Rs. 10.20

At the applicable NAV subject to prevailing entry load

Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.

This is the price you will receive for redemptions/switch outs.Example: If the applicable NAV is Rs. 10, exit load is 2% then redemption price will be:Rs. 10* (1-0.02) = Rs. 9.80

At the applicable NAV subject to prevailing exit load Securities Transaction Tax (STT) shall also be levied @0.25 percent (i.e. 0.25 basis point) on the seller as per Finance Act 2006 on redemption of units in equity schemes.

Cut off timing for subscriptions/ redemptions/ switches This is the time before which your application (complete in all respects) should reach the official points of acceptance.

I PURCHASES

Equity Schemes and Debt Schemes excluding Taurus Liquid Fund

1. In respect of valid applications received upto 3:00 PM along with a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable.

2. In respect of valid applications received after 3:00 PM along with a local cheque or demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable.

3. However, in respect of valid applications with outstation cheques/demand drafts not payable at par at the place where the application is received, closing NAV of the day on which cheque/demand draft is credited shall be applicable.

II REDEMPTIONS

a) In respect of valid applications received upto 3:00PM, same day’s closing NAV shall be applicable.

b) In respect of valid applications received after 3:00 PM, the closing NAV of the next business day shall be applicable.

III SWITCH TRANSACTIONS

43


Valid applications for “switch out” shall be treated as redemptions and for “switch in” shall be treated as purchases and the above guidelines for purchases and redemptions shall be applicable.

Applicable only to Income (Debt oriented Schemes (other than liquid schemes & plans)).

Purchases

“(2)(A) In respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more than Rs.1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilization shall be applicable.”

Liquid Schemes

I PURCHASES

(1) The following cut-off timings will be applicable in respect of purchase of units in liquid fund schemes and their plans, and the following NAVs shall be applied for such purchase:

a. where the application is received upto 12.00 noon on a day and funds are available

for utilization on the same day – the closing NAV of the day immediately preceding the day of receipt of application;

b. where the application is received after 12.00 noon on a day and funds are available

for utilization on the same day – the closing NAV of the day immediately preceding the next business day ; and

c. irrespective of the time of receipt of application, where the funds are not available for

utilization on the day of the application – the closing NAV of the day immediately preceding the day on which the funds are available for utilization.

II REDEMPTIONS

(2) The following cut-off timings will be applicable in respect of repurchase of units in liquid fund schemes and their plans, and the following NAVs shall be applied for such repurchase:

a. where the application is received upto 3.00 pm – the closing NAV of the day

immediately preceding the next business day ; and

b. where the application is received after 3.00 pm – the closing NAV of the next business day.

44


III SWITCH TRANSACTIONSValid applications for “switch out” shall be treated as redemptions and for “switch in” shall be treated as purchases and the above guidelines for purchases and redemptions shall be applicable.

The Cut-off timings for subscriptions/ redemptions & switches are explained by means of the following tables for better understanding :

Where can the applications for purchase/ redemption switches be

Offices of Taurus Asset Management Company Limited and Investor Service Centres of M/s Karvy Computershare Pvt Limited and any other official point of acceptance as may

45

Cut off Tim ings for applicable NAV

Transaction Cut off Time Transaction Type Transaction Amount Applicable NAVSchemes

Equity/ELSS/Gilt/Income Short Term Debt Liquid

Upto 12.00 Noon Purchase - Fresh / Additional Less than Rs 1.00 Cr Transaction Date Transaction Date Previous Date *Equal to and greater than Rs 1.00 Cr Transaction Date Transaction Date * Previous Date *

Upto 3.00 PM Purchase - Fresh / Additional Less than Rs 1.00 Cr Transaction Date Transaction Date Transaction Date *Equal to and greater than Rs 1.00 Cr Transaction Date Transaction Date * Transaction Date *

Switch / Lateral Shift-In Any Amount Transaction Date Transaction Date Transaction Date

Redemption Any Amount Transaction Date Transaction Date Transaction Date

Switch / Lateral Shift-Out Any Amount Transaction Date Transaction Date Transaction Date

Notes on Symbols * This means Cheques received subject to banking, realisation and utilisation

Cut off Tim ings for applicable NAV

Transaction Transaction Type Transaction Am ount Applicable NAVCut Off Tim e Schem es

Equity/ELSS Short Term Debt/Gilt/Income Liquid

After 3.00 PM Purchase - Fresh / Additional Less than Rs 1.00 Cr Next Bus iness Date Next Business Date Transaction Date *Equal to and greater than Rs 1.00 Cr Next Bus iness Date Next Business Date * Transaction Date *

Switch / Lateral Shift-In Any Am ount Next Bus iness Date Next Business Date Next Bus iness Date

Redemption Any Am ount Next Bus iness Date Next Business Date Next Bus iness Date

Switch / Lateral Shift-Out Any Am ount Next Bus iness Date Next Business Date Next Bus iness Date

@ Systematic Purchase Less than Rs 1.00 Cr Transaction Date Transaction Date $Equal to and greater than Rs 1.00 Cr Transaction Date Transaction Date * $

Sys tematic Transfer-In Any Am ount Transaction Date Transaction Date $

Sys tematic Withdrawal Any Am ount Transaction Date Transaction Date $

Sys tematic Transfer-out Any Am ount Transaction Date Transaction Date $

Notes on Sym bols * This m eans Cheques received subject to banking, realisation and utilisation@ This m eans - The transaction time is a one time action initiated by custom er and thereafter the Transaction is triggered sys tem ically which is 3.00 PM$ This means - The Transaction type is not available under the said schem e


submitted? be declared by the AMC, from time to time.

Minimum amount for purchase/ redemption/ switches Taurus Starshare,

Taurus Discovery Fund, Taurus Bonanza Fund, Taurus Infrastructure Fund, Taurus Income Fund, Taurus Gilt Fund

Rs.5000/- and in multiple of Rs.1000/- thereof

Taurus Ethical Fund Rs.5000/- and in multiple of Re.1/- thereofTaurus Tax Shield Rs. 500/- & multiples of Rs. 500/-Taurus Liquid Fund, Taurus Short Term Bond Fund

Retail plan : Rs 5000/- and in multiple of Rs 1000/- thereofInstitutional plan : Rs 1 cr and in multiple of Rs 1000/- thereofSuper-Institutional plan : Rs 5 crs and in multiple of Rs 1000/- thereof

Plans & Options

46


Scheme Plans & OptionsPlan Options

Taurus Starshare GrowthDividend Payout Option

Reinvestment OptionTaurus Discovery Fund Growth

Dividend Payout OptionReinvestment Option

Taurus Bonanza Fund GrowthDividend Payout Option

Reinvestment OptionTaurus Tax Shield Growth


Taurus Infrastructure Fund GrowthDividend Payout Option

Reinvestment OptionTaurus Ethical Fund Growth


BonusTaurus Income Fund Growth -

Dividend -Taurus Gilt Fund Growth -

Dividend -Taurus Liquid Fund Retail Growth

Dividend: Payout Reinvestment

Institutional Growth Daily Dividend Reinvestment Fortnightly Dividend

Reinvestment

Super Institutional

Growth Daily Dividend Reinvestment Weekly Dividend

Reinvestment


Retail GrowthDividend: Daily Dividend Reinvestment Weekly Dividend

ReinvestmentInstitutional Growth

Daily Dividend Reinvestment Weekly Dividend

ReinvestmentSuper Institutional

Growth Daily Dividend Reinvestment Weekly Dividend

Reinvestment

Redemptions and Minimum balance to be maintained and consequences of non maintenance.

For all schemes except Taurus Short Term Bond Fund and Taurus Ethical Fund, redemptions can be for any amount or any number of units, subject to the minimum balance in Rupees, which is required to be maintained in the account, at the time of the redemption. TAMCO reserves the right to close an investor’s account if the value of the

47


unit balance in the account falls below the minimum amount of investment in all the schemes. In such an event, TAMCO reserves the right to compulsorily redeem the balance units in the account completely at the applicable redemption price with or without giving him the option to invest sufficient funds to bring the value of the unit balance in the account to the required limits, within 30 days after the date of such shortfall. The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when necessary. Such change may be brought about after taking into account the cost structure for a transaction account and / or Market practices and / or the interest of the unitholders. Further such changes shall be carried out on a prospective basis from the date of notification of such change and would not, in any manner, be prejudicial to the interests of the investors who have joined the scheme before such notification. Any changes would be informed to unitholders by way of an advertisement.

In case of Taurus Short Term Bond Fund the minimum amount for redemption is Rs 5000/- and in multiple of Re 1/-

In case of Taurus Ethical Fund the minimum amount for redemption is Rs 1000/- & in multiples of Re1/- thereof or 100 units whichever is lower

Bank Account Details It is mandatory for the investors of mutual fund schemes to mention their bank account numbers in their applications / requests for redemption.

Special Products available Systematic Investment Plan (SIP)/ Systematic Withdrawal Plan(SWP)/ Systematic Transfer Plan( STP) for Taurus Starshare, Taurus Bonanza, Taurus Discovery Fund, Taurus Tax Shield, Taurus Income Fund, Taurus Gilt Fund

1) Systematic Investment Plan (SIP) Unitholders under the Schemes can take benefit by investing specific Rupee amounts at regular intervals for a continuous period. SIP allows the unitholders to invest fixed sum of rupees every month or every quarter by purchasing additional units of the Scheme(s) at the Applicable Net Asset Value. Unitholders can enrol themselves for SIP by filling up a Separate Systematic Investment Plan Enrolment Form which is available at the offices of the Fund / Designated Service Centres of R&T Agent. Subsequently they can invest a minimum of Rs.1000/- or in multiples of Rs.1000/- at monthly or quarterly intervals (Rs.500/- in case of Libra Tax Shield) by providing the Fund / R&T Agent post-dated cheques drawn payable at designated places where the application is submitted. These post-dated cheques should be provided for at least six months. The cheques should be drawn in favour of Taurus Mutual Fund – (Name of the Scheme) and crossed “A/C Payee only”. On receipt of post dated cheques, R&T Agent will send a letter to the unitholder confirming that the unitholder’s name has been noted for SIP. The cheques will be presented on the dates mentioned on the cheques and will be subject to realisation. Units will be allotted at the applicable NAV (i.e. NAV plus entry load, if any). In case the date falls on a day other than a Business Day, the immediate next Business Day will be considered for this purpose. A new Account Statement will be sent to the unitholder indicating the new balance to the credit of the unitholder’s account. Investors should note that such a plan (SIP) does not assure or guarantee any returns. The investors have right to discontinue the SIP facility at any time by sending a written request to the Fund / R&T Agent. Such notice should be received 7 days prior to the due date of the next cheque. On receipt of such request, the SIP will be terminated and any post-dated cheques remaining will be returned to the investor.

The AMC, keeping the convenience of investors in mind, may introduce such other facilities / features for Systematic Investment in the Schemes, as it may deem fit.

2) Systematic Withdrawal Plan (SWP)Systematic Withdrawal Plan is also available under the Scheme and this facility enables the unitholders to withdraw fixed sums from their unit accounts at periodic intervals. Any unitholder can avail of this facility subject to the terms and conditions contained in the SWP form which can be obtained from the offices of the Fund / Designated Service Centres of R&T Agent. A unitholder can opt for the facility at any time and receive regular monthly / quarterly payments from the account.

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The amount withdrawn under SWP by redemption shall be converted into units of the scheme at the Repurchase Price (which is generally first Business Day of the month in which payment is scheduled) and such units will be subtracted from the unit balance of that unitholder. In case the date falls on a holiday or falls during a Book Closure Period, the immediate next Business Day will be considered for this purpose.

The scheme(s) may close an investor’s account if the balance falls below Rs.5000/- or equivalent number of units, due to redemptions or use of SWP and the investor fails to invest sufficient funds to bring the value of account upto Rs.5000/- within 30 days after a written intimation in this regard is sent to the unitholder by R&T Agent. This minimum balance amount needed for SWP may be altered from time to time at the discretion of the AMC. Unitholders may change the amount of withdrawal, but not below the specified minimum, by giving 30 days notice to the Fund / R&TAgent.

SWP may be terminated on receipt of a notice from the unitholder by the Fund/ R&T Agent. It will terminate automatically if all the units are liquidated or withdrawn from the account or upon the receipt of notification of death or incapability of the unitholder.

3) Systematic Transfer Plan (STP)A unitholder may establish a Systematic Transfer Plan (STP) and choose to transfer on a monthly or a quarterly basis from one TMF Scheme to another TMF Scheme on a date prescribed by the Investment Manager. The amount thus withdrawn by redemption shall be converted into units at the applicable NAV on the scheduled day and such units will be subtracted from the unit balance of that unitholders. Unitholders may change the amount, not below the specified minimum, by giving two weeks prior written notice to the registrars. STP may be terminated automatically if the balance falls below the minimum account balance or upon the receipt of notification of death or incapacity of the unitholders by the fund. Rules relating to the plan may be changed from time to time by the Investment Manager.

Systematic Investment Plan (SIP)/ Systematic Withdrawal Plan(SWP)/ Systematic Transfer Plan( STP) for Taurus Ethical Fund

(1) Systematic Investment PlanThis facility enables investors to save and invest periodically over a longer period of time. It is a convenient way to "invest as you earn" and affords the investor an opportunity to enter the market regularly, thus averaging the acquisition cost of Units. SIP Facility can be availed monthly/quarterly on the following dates: 1st , 5th, 10th , 15th & 28th. Investors can avail this facility either through Post dated Cheques OR through ECS (Debit Clearing) of the Reserve Bank of India (RBI) in select cities. After the initial minimum investment of Rs.5000/- the minimum amount of each cheque / payment instruction towards SIP installments shall be Rs. 1000/- & in multiple of Rs.1000/- thereof. All the cheques / payment instructions (including the first cheque / payment instruction) shall be of equal amounts. Non MICR / Outstation cheques will not be accepted. MICR Code starting and/or ending with “000” are not valid for ECS. The aggregate of such cheques / payment instructions shall not be less than Rs. 6,000 inclusive of the first installment. There is no upper limit for the Purchase for a single cheque/payment instruction or in aggregate. Please note that SIP will be started subject to the realization of the initial payment of Rs.5000/-. The AMC reserves the right to reject any application inter alia in the absence of fulfillment of any regulatory requirements, fulfillment of any requirements as per the Offer Document, incomplete/ incorrect documentation and furnishing necessary information to the satisfaction of the Mutual Fund/AMC.

The conditions for investing in SIP during the NFO period are as under:

The first installment of the SIP will be processed subject to applicable NAV & load, if any, on the date of Allotment. The second installment in case of monthly SIP will be processed on the available SIP dates (currently 1st , 5th, 10th , 15th & 28th of every month) indicated by the investor, but immediately following the expiry of 30 Business Days from the date of Allotment. If the choice of date for the second installment is not indicated by the investor, the second installment of SIP will be by default processed on the 10th of the month. In case of quarterly SIP, the default date for next installment will be 10th of the relevant month. If any of above dates falls on a holiday/ non-business day, the transaction will be taken as of the next Business Day. In case the end date is not mentioned by the investor, it will be registered for a default period of 12 months. If there is an ambiguity in the

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enrollment period of the SIP, the second installment of SIP will be by default processed for the SIP date chosen (10th of the month if not specified) following the expiry of 30 Business Days from the date of Allotment for a default period of 12 months.

2) Systematic Withdrawal Plan (SWP)Systematic Withdrawal Plan is also available under the Scheme and this facility enables the unitholders to withdraw fixed sums from their unit accounts at periodic intervals. Any unitholder can avail of this facility subject to the terms and conditions contained in the SWP form which can be obtained from the offices of the Fund / Designated Service Centres of R&T Agent. A unitholder can opt for the facility at any time and receive regular monthly / quarterly payments from the account.

The amount withdrawn under SWP by redemption shall be converted into units of the scheme at the Repurchase Price (which is generally first Business Day of the month in which payment is scheduled) and such units will be subtracted from the unit balance of that unitholder. In case the date falls on a holiday or falls during a Book Closure Period, the immediate next Business Day will be considered for this purpose.

The scheme(s) may close an investor’s account if the balance falls below Rs.5000/- or equivalent number of units, due to redemptions or use of SWP and the investor fails to invest sufficient funds to bring the value of account upto Rs.5000/- within 30 days after a written intimation in this regard is sent to the unitholder by R&T Agent. This minimum balance amount needed for SWP may be altered from time to time at the discretion of the AMC. Unitholders may change the amount of withdrawal, but not below the specified minimum, by giving 30 days notice to the Fund / R&T Agent.

SWP may be terminated on receipt of a notice from the unitholder by the Fund / R&T Agent. It will terminate automatically if all the units are liquidated or withdrawn from the account or upon the receipt of notification of death or incapability of the unitholder.

3) Systematic Transfer Plan (STP)A unitholder may establish a Systematic Transfer Plan (STP) and choose to transfer on a monthly or a quarterly basis from one TMF Scheme to another TMF Scheme on a date prescribed by the Investment Manager. The amount thus withdrawn by redemption shall be converted into units at the applicable NAV on the scheduled day and such units will be subtracted from the unit balance of that unitholders. Unitholders may change the amount, not below the specified minimum, by giving two weeks prior written notice to the registrars. STP may be terminated automatically if the balance falls below the minimum account balance or upon the receipt of notification of death or incapacity of the unitholders by the fund. Rules relating to the plan may be changed from time to time by the Investment Manager.

Systematic Investment Plan (SIP)/ Systematic Withdrawal Plan(SWP)/ Systematic Transfer Plan( STP) for Taurus Short Term Bond Fund

1) Systematic Investment Plan (SIP)

This facility enables investors to save and invest periodically over a longer period of time. It is a convenient way to "invest as you earn" and affords the investor an opportunity to enter the market regularly, thus averaging the acquisition cost of Units. Please note that in case of auto debit facility, SIP will be started subject to the realization of the first registration cheque. SIP can be availed monthly/quarterly on the following dates: 1st, 10th, 15th, 21st and 28th. SIP Facility is available only under the Retail Plan of the Scheme.The conditions for investing in SIP during the Ongoing Offer period are as under :

• Purchases can be made on monthly/quarterly basis. SIP can be availed monthly/quarterly on the following dates: 1st,10th 15th 21st and 28th. The minimum amount of each cheque / payment instruction shall be Rs. 1000/- in case of Monthly and Rs 1500/- in case of Quarterly.

• In case of SIP submitted during the Ongoing Offer period, Investors can enroll themselves for SIP by submitting the enrollment form along with the relevant documents including post dated cheques / auto debit instructions along with the first cheque to start SIP and a cancelled cheque or a copy of cheque in case of

50


Electronic Clearing System (ECS) or Standing Instructions as the case may be at any of our ISCs. In case of Post Dated Cheques the date of the first cheque shall be dated on or before the date of submission of the application form while the remaining cheques (minimum 5 ) shall be post dated cheques (dated uniformly either the 1st 10th 15th, 21st and 28th of a month or quarter).

• The first installment of the SIP will be processed subject to applicable NAV & load, if any, on the date of on the date of submission on any business day. The second installment in case of monthly SIP will be processed on the available SIP dates (currently 1st, 10th, 15th, 21st or 28th of every month) indicated by the investor, but immediately following the expiry of 30 Business Days from the date of processing the first SIP. If the choice of date for the second installment is not indicated by the investor, the second installment of SIP will be by default processed on the 10th of the month immediately following the expiry of 30 Business Days from the date of processing the first SIP installment. In case of quarterly SIP, the default date for next installment will be 10th of the relevant month. If any of above dates fall on a holiday, the transaction will be taken as of the next Business Day. Non MICR / Outstation cheques will not be accepted. In case the end date is not mentioned by the investor, where the SIP is through ECS / Auto Debit mandate, it will be registered for a default period of 12 months.

• All the cheques / payment instructions (including the first cheque / payment instruction) shall be of equal amounts.

• The aggregate of such cheques / payment instructions shall not be less than Rs. 6,000 inclusive of the first installment. There is no upper limit for the Purchase for a single cheque / payment instruction or in aggregate.

• An extension of an existing SIP will be treated as a new SIP on the date of such application, and all the above conditions need to be met with.

• Termination of SIP: For discontinuation of SIP the unit holder / investor should intimate the AMC/ISC at least 15 working days prior to the due date of next cheque / installment 1st 10th 15th, 21st and 28th of every month/quarter). On such request, SIP will be terminated and the balance post-dated cheques will be returned to the investor or the debit instruction given by the investor under ECS will be cancelled.

• The load structure prevailing at the time of submission of the SIP application (whether fresh or extension) will apply for all the installments indicated in such application.

• In case of cancellation of a SIP or cheques returned uncleared for SIP installments or payment instructions not honoured, if no Entry Load had been charged, the AMC may reduce the number of Units allotted against the previous installments to the extent of applicable Entry Load on such installments.

The Units will be allotted to the investor at the Applicable NAV of the respective dates on which the investments are sought to be made. However, if any of the dates on which an investment is sought to be made is a non-Business Day, the Units will be allotted at the Applicable NAV of the next Business Day.

Any Unit Holder can avail of this facility subject to certain terms and conditions detailed in the Application Form.

For applicable load on Purchases through SIP please refer to Chapter - LOAD, FEES AND EXPENSES APPLICABLE TO SCHEME.

2) Systematic Transfer Plan (STP)

This facility enables Unit Holders to transfer fixed sums from their Unit accounts in the Scheme to the other schemes launched by the Fund from time to time.. The transfer will commence from the date mentioned by the Unit Holder in the Application Form for the facility. A minimum period of 15 days shall be required for registration under STP. The Units will be allotted/redeemed at the Applicable NAV of the respective dates of the Scheme on which such transfers are sought from the Scheme. In case the day on which

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the transfer is sought is a non-Business Day for the Scheme, then the application for the facility will be deemed to have been received on the immediately following Business Day:-

Options Available and Minimum Amount:

• Monthly Plan: Minimum 6 transfers of Rs. 1,000/- each and above.

• Quarterly Plan: Minimum 4 transfers of Rs. 1,500/- each and above.

• Minimum balance in the Scheme at the time of enrollment for STP facility should be Rs. 6,000/-.

• STP is not available for investments under lock-in period and for investments which are pledged.

• In case of insufficient balance, the transfer will not be effected.

3) Systematic Withdrawal Plan (SWP)This facility enables the Unit Holders to withdraw sums from their Unit accounts in the Scheme at periodic intervals through a one-time request. The withdrawals will commence from the Start Date mentioned by the Unit Holder in the Application Form for the facility. A minimum period of 15 days shall be required for registration under SWP. The Units will be redeemed at the Applicable NAV of the respective dates on which such withdrawals are sought. However, if any of the dates on which the redemption is sought is a non-Business Day, the Units will be redeemed at the Applicable NAV of the next Business Day.

Options available and Minimum Amount

Fixed withdrawal: Investors can withdraw fixed amount of Rs. 1,000/- each and above on monthly or quarterly basis.

Appreciation withdrawal: Investors can withdraw appreciation of Rs. 1,000/- and above on monthly or quarterly basis. If the appreciation amount is less than Rs.1,000/- or the specified amount, there will be no SWP in that month/quarter. The cumulative appreciation of this period and the immediately succeeding period shall be paid out subject to it being a minimum of Rs. 1,000/- or the specified amount.

• SWP is not available for investments under lock-in period and for investments which are pledged.

• The SWP payouts will be processed at the requested frequency. The investor can opt for direct credit of the redemption proceeds to their bank accounts with banks with whom the Fund will have arrangements in this regard.

• For investors banking with any other bank apart from above with whom the Fund will have arrangements, the AMC /MF will endeavor to credit the payout directly to that bank account through available electronic mode(s) (ECS/Direct Credit). The AMC/MF shall not be responsible if payout through electronic mode(s) (ECS/Direct Credit) does not get affected due to incomplete or incorrect information or any other technical/operational reasons. The AMC/MF reserves the right to use any other mode of payment as deemed appropriate.

• In case of Fixed Withdrawal, if the amount of installment is more than the amount available in that account for redemption, the entire available amount will be redeemed and the SWP will terminate automatically. In such a scenario, AMC will have no obligation to communicate to the investor before automatic termination of SWP.

• In case of Appreciation Withdrawal, appreciation will be calculated on the units available for redemption at the time of the SWP installment.

• Withdrawal can be on monthly or quarterly basis.

Systematic Investment Plan (SIP)/ Systematic Withdrawal Plan (SWP)/ Systematic Transfer Plan (STP) for Taurus Infrastructure Fund

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1) SYSTEMATIC INVESTMENT PLAN (SIP)

The investors can benefit by investing specified Rupees amounts at regular intervals after scheme reopens for ongoing sales. The SIP allows the unitholders to invest a fixed amount of Rupees at regular intervals for purchasing additional nits of the scheme at NAV based prices. Investment can be done with the minimum amount and number of cheques specified by AMC from time to time. The cheques should be drawn in favour of Taurus Infrastructure Fund and crossed “A/c.Payee only”. The cheques will be presented on the dates mentioned on the cheques and subject to realization; units will be allotted at the applicable NAV along with applicable sales load.

2) SYSTEMATIC WITHDRAWAL PLAN (SWP)This facility available to the unitholders of the scheme enables them to withdraw fixed sums from their unit accounts at periodic intervals. The amount withdrawn under SWP by redemption shall be converted into the Scheme units at the Repurchase price and such units will be subtracted from the unit balance of that unitholder. In case the date falls during a book closure period the immediate next Business day will be considered for this purpose. The designated Investor Service Center may terminate SWP on receipt of a notice from the unitholder. It will terminate automatically if all units are liquidated or withdrawn from the account or upon the receipt of notification of death or incapacity of the unitholder.

3) SYSTEMATIC TRANSFER PLAN (STP)A unitholder may establish a Systematic Transfer Plan (STP) and choose to transfer on a monthly or a quarterly basis from one TMF Scheme to another TMF Scheme on a date prescribed by the Investment Manager. The amount thus withdrawn by redemption shall be converted into units at the applicable NAV on the scheduled day and such units will be subtracted from the unit balance of that unitholder. Unitholders may change the amount, not below the specified minimum, by giving two weeks prior written notice to the registrars. STP may be terminated automatically if the balance falls below the minimum account balance or upon the receipt of notification of death or incapacity of the unitholders by the Fund. Rules relating to the plan may be changed from time to time by the Investment Manager.

Who Can Invest Prospective investors are advised to satisfy themselves that they are not prohibited by any law governing them and any Indian law from investing in the Scheme and are authorized to purchase units of mutual funds as per their respective constitutions, charter documents, corporate / other authorizations and relevant statutory provisions.The following is an indicative list of persons who are generally eligible and may apply for subscription to the Units of the Scheme and the indicative list could also include persons not mentioned below.

All Schemes including Retail Plans of Taurus Liquid Fund and Taurus Short Term Bond Fund :

• Indian resident adult individuals, either singly or jointly (not exceeding three);• Minor through parent / lawful guardian; (please see the note below)• Companies, bodies corporate, public sector undertakings, association of persons or

bodies of individuals and societies registered under the Societies Registration Act, 1860;

• Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private Trusts authorized to invest in mutual fund schemes under their trust deeds;

• Partnership Firms constituted under the Partnership Act, 1932;• A Hindu Undivided Family (HUF) through its Karta;• Banking Company as defined under the Banking Regulation Act, 1949;• Banks (including Co-operative Banks and Regional Rural Banks) and Financial

Institutions;• Public Financial Institution as defined under the Companies Act, 1956;• Insurance Company registered with the Insurance Regulatory and Development

Authority;• Non-Resident Indians (NRIs) / Persons of Indian Origin (PIO) on full repatriation basis

or on non-repatriation basis;• Foreign Institutional Investors (FIIs) and Sub accounts registered with SEBI on full

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repatriation basis;• Army, Air Force, Navy and other para-military funds and eligible institutions;• Scientific and Industrial Research Organizations;• Provident / Pension / Gratuity and such other Funds as and when permitted to invest;• International Multilateral Agencies approved by the Government of India / RBI; and• The Trustee, AMC or Sponsor or their associates (if eligible and permitted under

prevailing laws). • A Mutual Fund through its schemes, including Fund of Funds schemes.• Special Purpose Vehicles (SPVs) approved by appropriate authority (subject to RBI

approval)

Note: Minor Unit Holder on becoming major may inform the Registrar about attaining majority and provide his specimen signature duly authenticated by his banker as well as his details of bank account and a certified true copy of the PAN card as mentioned under the paragraph "Anti Money Laundering and Know Your Customer" to enable the Registrar to update their records and allow him to operate the Account in his own right.

Institutional Plans of Taurus Liquid Fund and Taurus Short Term Bond Fund :

• Banking Company as defined under the Banking Regulation Act, 1949;• Banks (including Co-operative Banks and Regional Rural Banks) and Financial

Institutions• Public Financial Institution as defined under the Companies Act, 1956;• Insurance Company registered with the Insurance Regulatory and Development

Authority;• Army, Air Force, Navy and other para-military funds and eligible institutions;• Special Purpose Vehicles (SPVs) approved by appropriate authority (subject to RBI

approval)• Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to

receipt of necessary approvals as required) and Private Trusts authorized to invest in mutual fund schemes under their trust deeds;

• Foreign Institutional Investors (FIIs) and Sub accounts registered with SEBI on full repatriation basis;

• International Multilateral Agencies approved by the Government of India / RBI• Provident / Pension / Gratuity and such other Funds as and when permitted to invest;• Such other individuals/institutions/body corporate etc., as may be decided by the AMC

from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.

Note: 1. Minor Unit Holder on becoming major may inform the Registrar about attaining majority and provide his specimen signature duly authenticated by his banker as well as his details of bank account and a certified true copy of the PAN card as mentioned under the paragraph “Anti Money Laundering and Know Your Customer” to enable the Registrar to update their records and allow him to operate the Account in his own right.

Note: 2. Applicants under Power of Attorney:

An applicant willing to transact through a power of attorney must lodge the photocopy of the Power of Attorney (PoA) attested by a Notary Public or the original PoA (which will be returned after verification) within 30 Days of submitting the Application Form / Transaction Slip at a Designated Collection Centre.

Applications are liable to be rejected if the power of attorney is not submitted within the aforesaid period.

It should be noted that the following entities cannot invest in the schemes:

• Any individual who is a Foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999, except where registered with SEBI as a FII or FII sub account. However, there is no restriction on a foreign national from acquiring Indian securities provided such foreign national meets the residency tests as laid down by Foreign Exchange Management Act, 1999.

• Overseas Corporate Bodies (OCBs) shall not be allowed to invest in the Scheme.

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These would be firms and societies which are held directly or indirectly but ultimately to the extent of at least 60% by NRIs and trusts in which at least 60% of the beneficial interest is similarly held irrevocably by such persons (OCBs.)

• Non-Resident Indians residing in the Financial Action Task Force (FATF) Non Compliant Countries and Territories (NCCTs)

• The Fund reserves the right to include / exclude new / existing categories of investors to invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any.

Subject to the Regulations, any application for Units may be accepted or rejected in the sole and absolute discretion of the Trustee. For example, the Trustee may reject any application for the Purchase of Units if the application is invalid or incomplete or if, in its opinion, increasing the size of any or all of the Scheme's Unit capital is not in the general interest of the Unit Holders, or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its Unit Holders to accept such an application.

The AMC / Trustee may need to obtain from the investor verification of identity or such other details relating to a subscription for Units as may be required under any applicable law, which may result in delay in processing the application.

It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete applications will be rejected. The Registrar / AMC may ask the investor to provide a blank cancelled cheque or its photocopy for the purpose of verifying the bank account number.

Accounts Statements For normal transactions (other than SIP/STP) during ongoing sales and repurchase:• The AMC shall issue to the investor whose application (other than SIP/STP) has been

accepted, an account statement specifying the number of units allotted within 10 working days from the date of clearance of cheque/draft

• For those unitholders who have provided an e-mail address, the AMC will send the account statement by e-mail.

• The unitholder may request for a physical account statement by ticking the appropriate column in the application form writing/calling the AMC/ISC/R&T.

For SIP / STP transactions;• Account Statement for SIP and STP will be despatched once every quarter ending

March, June, September and December within 10 working days of the end of the respective quarter.

• A soft copy of the Account Statement shall be mailed to the investors under SIP/STP to their e-mail address on a monthly basis, if so mandated.

• However, the first Account Statement under SIP/STP shall be issued within 10 working days of the initial investment/transfer.

Annual Account Statement:• The Mutual Funds shall provide the Account Statement to the Unitholders who have

not transacted during the last six months prior to the date of generation of account statements. The Account Statement shall reflect the latest closing balance and value of the Units prior to the date of generation of the account statement.

• The account statements in such cases may be generated and issued along with the Portfolio Statement or Annual Report of the Scheme.

• Alternately, soft copy of the account statements shall be mailed to the investors’ e-mail address, instead of physical statement, if so mandated.

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Dividend Under the Dividend Plan of the schemes,, it is proposed to declare dividends subject to availability of distributable profits, as computed in accordance with SEBI Regulations. Dividends, if declared, will be paid (subject to deduction of tax at source, if any) to those Unitholders whose names appear in the Register of Unitholders on the notified record date. However, it must be distinctly understood that the actual declaration of dividend and the frequency thereof will inter-alia, depend on the availability of distributable profits as computed in accordance with SEBI Regulations. The decision of the Trustee in this regard shall be final. There is no assurance or guarantee to Unitholders as to the rate of dividend distribution nor that dividends will be paid regularly. In order to be a Unitholder, an Investor has to be allotted units against receipt of clear funds by the Scheme. On payment of dividends, the NAV will stand reduced by the amount of dividend and dividend tax (if applicable) paid.

If the Fund declares dividend under a Scheme, AMC shall dispatch the dividend warrants within 30 days from the date of declaration of dividend.

Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 working days from the date of redemption or repurchase.

Delay in payment of redemption / repurchase proceeds

The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).

Restrictions, if any, on the right to freely retain or dispose of units being offered.

Right to Limit Purchase & Redemptions

The Trustee may, in the general interest of the Unit Holders of the Scheme and when considered appropriate to do so based on unforeseen circumstances / unusual market conditions, limit the total number of Units which may be redeemed on any Business Day to 5% of the total number of Units then in issue, under the Scheme and option(s) thereof, or such other percentage as the Trustee may determine. Any Units which consequently are not redeemed on a particular Business Day, will be carried forward for Redemption to the next Business Day, in order of receipt. Redemptions so carried forward will be priced on the basis of the Applicable NAV (subject to the prevailing Load) of the Business Day on which Redemption is made. Under such circumstances, to the extent multiple Redemption requests are received at the same time on a single Business Day, redemptions will be made on a pro-rata basis, based on the size of each Redemption request, the balance amount being carried forward for Redemption to the next Business Day.

C. PERIODIC DISCLOSURES

Net Asset Value

This is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance.

The Mutual Fund shall declare the Net asset value of the scheme on every business day on AMFI’s website www.amfiindia.com by 09:00p.m and also on the Fund's website www.taurusmutualfund.com. Being open ended schemes, the NAV shall be calculated for all business days and will be published in two daily newspapers (along with sale & repurchase prices)

Half yearly Disclosures: Portfolio/Financial ResultsThis is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures.

The Fund will publish complete statement of the scheme portfolio and the unaudited financial results, within one month from the close of each half year (i.e. 31st March and 30th September), by way of an advertisement at least, in one National English daily and one regional newspaper in the language of the region where the head office of the mutual fund is located.

Half Yearly Results The Fund and Asset Management Company shall before the expiry of one month from the close of each half year that is on 31st March and on 30th September, publish its unaudited financial results in one national English daily newspaper and in a regional newspaper published in the language of the region where the Head Office of the mutual fund is situated.

Annual Report Scheme wise Annual Report or an abridged summary thereof shall be mailed to all

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unitholders within four months from the date of closure of the relevant accounting year i..e. 31st March each year.

Associate Transactions Please refer to Statement of Additional Information (SAI).

TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. (mention the tax rates as per the applicable tax laws)

For All Equity Schemes

Resident Investors Mutual Fund

Tax on Dividend Nil NilCapital Gains Tax:Long Term Nil NilShort Term 15%+applicable surcharge &

education cessNil

Equity schemes will also attract securities transaction tax (STT) at applicable rates.

Securities Transaction Tax (STT)

Sale of units of equity oriented schemes to the Mutual Fund would be liable to Securities Transaction Tax. STT would be payable at the rate of 0.25% on the redemption value of the investor at the time of redemption of units.

For Debt Schemes (other than Liquid Scheme)

Resident Investors

Mutual Fund

Tax on Dividend or dividend distribution tax

Nil Individual & HUF 12.50% + 10% Surcharge + 3% Education Cess = effective rate is 14.1625% Others 20%+10% Surcharge + 3% Education Cess = effective rate is 22.66%

Capital Gains :Long Term 10%

+Surcharge & Education cess (without indexation) or 20%+Surcharge & Education Cess (with indexation)

N.A.

Short Term At Marginal Rate

N.A.

For Taurus Liquid Fund

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Resident Investors Mutual Fund

Tax on Dividend Distributed

Nil 25% + 10% Surcharge + 3% Education Cess = effective rate is 28.325%

Tax on Capital Gains:Long Term 10%+ Surcharge &

Education Cess (without indexation) or 20%+ Surcharge & Education Cess (with indexation)

Nil

Short Term At Marginal Rate Nil

Note: The tax provisions described above are as per the present tax laws. In case of any change/variation in the aforesaid tax laws by the Government, the changed provisions will apply accordingly.For further details on taxation, please refer to the clauses on Taxation in SAI.

Investor services Mr. V Sasidhar (Head – Customer Service)Taurus Asset Management Company LimitedGround Floor, AML Centre-1, 8 Mahal Industrial EstateMahakali Caves Road, Andheri (East)Mumbai 400093

Phones : 022-66242700Fax : 022-66242777e-mail: [email protected]

D. COMPUTATION OF NAV

The Net Asset Value per unit shall be calculated by dividing the Net Assets of the Scheme by the total number of units outstanding under the scheme on the valuation date. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VII of the SEBI Regulations or such norms as may be specified by SEBI from time to time.

NAV of the units of the scheme shall be calculated as shown below:

NAV Rs. Per unit = Market or Fair value of Scheme’s investments + Current Assets-Current Liabilities and Provisions / No. of units outstanding under the scheme

In respect of equity schemes, Net Asset Value will be rounded off upto two decimal points and in respect of debt/income schemes, Net Asset Value will be rounded off upto four decimal points.

The NAV will be calculated on all Business Days and will be published daily in at least two daily newspapers or at such intervals as may be prescribed by SEBI from time to time

IV. FEES AND EXPENSES

This section outlines the expenses that will be charged to the schemes.

A. NEW FUND OFFER (NFO) EXPENSESAll the schemes included in this Common Scheme Information Document are ongoing schemes and as such this section is not applicable.

B. ANNUAL SCHEME RECURRING EXPENSES

These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below:

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Weekly Average Net Assets (Rs.) Maximum Limit

Taurus Starshare, Taurus Discovery Fund, Taurus Bonanza Fund, Taurus Infrastructure

Fund, Taurus Ethical Fund & Taurus Tax Shield

Taurus Income Fund, Taurus Gilt Fund & Taurus Short Term Bond

Fund, Taurus Liquid Fund

* On the first Rs. 100 Crores* On the next Rs. 300 Crores* On the next Rs. 300 Crores* On the balance assets

2.50%2.25%2.00%1.75%

2.25%2.00%1.75%1.50%

The above are the maximum limits under Regulation 52(6) of SEBI (Mutual Funds) Regulations, 1996. Total expenses of the Scheme including the investment management and advisory fee (together with additional management fee wherever applicable) shall not exceed the limit stated in Regulation 52 (6). In case of debt schemes, the expenses shall be lesser by 0.25% as provided in Regulation 52(6). The Fund will strive to reduce the level of these expenses so as to keep them well within the maximum limits allowed by SEBI and any expenditure in excess of the above limits shall be borne by the Asset Management Co or the Sponsor as the case may be.

The ongoing fees and expenses of operating the Schemes on an annual basis expressed as a percentage of the amount of the Scheme’s average net assets are inter-alia given in the following table:

I) Taurus Starshare, Taurus Discovery Fund, Taurus Bonanza Growth Scheme, Taurus Infrastructure Fund & Taurus Tax Shield

% per annum Particulars Taurus Starshare, Taurus Discovery Fund,

Taurus Bonanza Growth Scheme, Taurus Infrastructure Fund & Taurus Tax Shield

Taurus Income Fund & Taurus Gilt Fund

Investment Management & Advisory Fees 1.25 1.00*Trustees Fees 0.01 0.01Custodian Fees 0.20 0.20Registrar & Transfer Agent Fees 0.25 0.25Marketing & Selling Expenses Including Agents Commission

0.25 0.25

Audit Fees 0.10 0.10Cost related to Investors Communication 0.25 0.25Miscellaneous Expenses 0.19 0.19TOTAL 2.50 2.25

II) Taurus Ethical Fund

Particulars % p.a. of daily average net assets

Investment Management & Advisory Fee 1.25Custodial Fees 0.02Registrar & Transfer Agent Fees including cost related to providing accounts statement, dividend/ redemption cheques/warrants etc.

0.13

Marketing & Selling Expenses including Agents Commission and statutory advertisement

0.10

Brokerage & Transaction Cost pertaining to the distribution of units 0.75Audit Fees / Fees and expenses of trustees 0.15Costs related to investor communications 0.05Costs of fund transfer from location to location 0.02Other Expenses* 0.03Total Recurring Expenses 2.50

III) Taurus Liquid Fund

Category of Expenses EstimateInvestment Management fee to be charged by the AMC 0.25%

59


Fees and expenses of Trustees 0.01%Custodian Fees 0.03%Fees for Services of Registrar 0.07%Audit Fees 0.01%Marketing & Selling expenses, including agents commission if any 0.20%Misc. Expenses 0.03%Total 0.60%

Subject to the following limits:i) 2.25% on the first Rs.100crs. of average

weekly net assets.ii) 2.00% on the next Rs.300crs. of average

weekly net assets.iii) 1.75% on the next Rs.300crs. of average

weekly net assets.iv) Rs.1.50% on the balance of the average

weekly net assets.

IV) Taurus Short Term Bond Fund

Nature % p.a. of daily average net assetsRetail Plan Institutional Plan Super Institutional Plan

Investment Management & Advisory Fee Upto 1.25 Upto 1.25 Upto 1.25Trustee Fees and Expenses 0.05 0.05 0.05Marketing and Selling Expenses, Custodian Expenses, Registrar and Transfer Agent Fee, Audit Fee and other expenses* permitted under regulation 52(4)(b)

0.95 0.80 0.70

Total Recurring Expenses including Management Fees Upto 2.25 Upto 2.10 Upto 2.00

The above estimates have been made in good faith by the AMC and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations.

Other expenses: Any other expenses which are directly attributable to the Scheme, may be charged with approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited.

The purpose of the above tables is to assist the investor in understanding the various costs and expenses that an investor in the Scheme will bear directly or indirectly. While this estimate has been made in good faith on the basis of information available with the Fund, there can be no assurance that actual expense, under any particular head will not be more or less than such estimate. The AMC reserves the rights to revise the fees payable to the service providers from time to time. The total expenses, however, will be maintained within the limits mentioned under Regulation 52 (6) of SEBI Regulations.

Subject to the overall ongoing fees and expenses which would be charged to the Scheme not exceeding the limit laid down under Regulation 52(6) [as reproduced above], the AMC may at its discretion charge to the Scheme the Government levies in the form of any charges or applicable taxes including applicable surcharge either presently payable or which may be imposed in future. Currently, the Government has imposed Service Tax of 12.36% on the Management and Trustee Fees (including education cess) on Service Tax which would be charged to the Scheme subject to the overall expenses charged to the Scheme do not exceed the limits laid down under Regulation 52(6).

Further, as and when permitted by SEBI, the AMC may charge a higher fee. However, revision in fee charged shall be within the SEBI Regulations at all times.

C. LOAD STRUCTURE

Load is an amount which is paid by the investor to subscribe to the units or to redeem from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time.

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I) Taurus Starshare, Taurus Discovery Fund, Taurus Bonanza Fund, Taurus Infrastructure Fund and Taurus Ethical Fund

: Amount in Rs. Crores

Entry Load

Exit Load as % Period in months

0-6 >6<12Less than 2

crs.2.25% 1.00% 0.50%

2 crs. and above but less

than 5cr.

Nil 0.50% Nil

5 crs. and above

Nil Nil Nil

Any amount by SIP

2.25% 1.00% 1.00%

Switch: Equity to Equity/ELSS Entry/Exit Load NIL and Equity to Liquid/Debt-Entry/Exit Load as per Load Structure of the relevant schemes.


II) Taurus Tax Shield : Entry Load Exit Load2.5%

(Including Systematic Investment PlanNil

Switch: Taurus Tax Shield to other schemes after lock in period of 3 years, Entry/Exit load will be applicable.


III) Taurus Income Fund : App. Amt. (Rs.) Entry Load Exit Load< 50 Lacs Nil 2% if exited before 3

Months1% if exited >= 3 Monthsbut before 1 Year

=>50 Lacs Nil 0.50% if exited before 1 Month

Switch: Taurus Income Fund to other schemes: Applicable Entry/Exit loads of the relevant schemes.

IV) Taurus Gilt Fund : Entry Load Exit LoadNil 0-3 months – 0.25% >

3 months Nil

Switch: Taurus Gilt Fund to other schemes. Applicable Entry/Exit Load of the scheme where in units are switched in

V) Taurus Liquid Fund : Plan Entry Load

Exit Load

Retail Plan Nil Nil



Nil Nil

Switchover Load from Taurus Liquid Fund to other schemes. Applicable Entry/Exit Loads of the relevant schemes.

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VII) Taurus Short Term Bond Fund : Plan Entry Load

Exit Load

Retail Plan/ SIP/SWP/STP

Nil 0.10% if redeemed within 3 days



Nil Nil

Switch: Taurus Short Term Bond Fund to other schemes. Applicable Entry/Exit Loads of the relevant schemes.

A Switch-Out/Withdrawal under SWP will also attract an exit load like any redemption. In case of SIP / STP, the above criteria for Entry Load will be applicable for each installment. Exit load is applicable for all the Plans/Options under the Scheme by applying First in First Out basis No Entry/Exit Load is chargeable in case of switches made between different Sub-options of the same plan.

As per SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008, no entry or exit load would be charged on Bonus units and of units allotted on reinvestment of Dividend.

All loads including Contingent Deferred Sales Charge (CDSC) for the Scheme shall be maintained in a separate account and may be utilised towards meeting the selling and distribution expenses. Any surplus in this account may be credited to the scheme, whenever felt appropriate by the AMC.

The investor is requested to check the prevailing load structure of the scheme before investing.

For any change in load structure AMC will issue an addendum and display it on the website/Investor Service Centres.

Sale/ Repurchase Price

The Mutual Fund may charge the load within the stipulated limit of 7% and without any discrimination to any specific group. The Repurchase Price however, will not be lower than 93% of the NAV, and the Sale Price will not be higher than 107% of the NAV, provided that the difference between the Repurchase price and Sale price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on the Sale Price.

All Loads are intended to enable the AMC to recover expenses incurred for promotion or distribution and sales of the Units of the Scheme. The Fund/AMC shall retain the load, in the Scheme in a separate account and use it to cover the cost of raising/redeeming units on a continuous basis by way of providing redemption/distribution related services to the Fund relating to the sale, promotion, advertising and marketing of the units of the Scheme and costs associated with liquidating the Fund’s investment securities, including payments for postage and also payments to brokers for their services in connection with the redemption/distribution of the units. Surplus of load, if any, charged over planned marketing and distribution expenses will be credited to the respective plans whenever felt appropriate by the AMC.

The Trustee reserves the right to modify/alter the load structure and may decide to charge an entry load/exit load or a combination of entry/exit loads or introduce a differential load structure on the Units with prospective effect, subject to the maximum limits as prescribed under the SEBI Regulations. At the time of changing the load structure, the AMC shall take the following steps:

Any imposition or enhancement in the load shall be applicable on prospective investments only. However, AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors. At the time of changing the load structure, the mutual funds may consider the following measures to avoid complaints from investors about investment in the schemes without knowing the loads:

• The addendum detailing the changes shall be attached to Scheme Information Documents and Key Information Memoranda. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.

• Arrangements shall be made to display the changes/modifications in the Scheme Information Document in the form of a notice in all the ISCs or the AMC.

62


• The introduction of the exit load/ CDSC along with the details shall be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such load/CDSC.

• A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is situated.

• Any other measure which the Fund may feel necessary.

The AMC may change the load from time to time and in case of an exit/repurchase load this may be linked to the period of holding, while in case of entry load this may be linked to the amount of investment. The load charged could also be different as regards the amount/tenor of investment, etc. It may be noted that any such change in the load structure shall be applicable on prospective investment only.

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS

In terms of SEBI Circular No. SEBI/IMD/CIR No 10/112153/7 dated 31st December 2007, no entry load shall be charged for for 'Direct Applications' received by the AMC for all fresh investments/additional purchase under the same folio/ switch-in from other scheme(s) of the Mutual Fund. Investors are advised to take note of the following procedure for submission of Direct Applications

I) Applications will be treated as direct if the forms are not routed through any distributor/ agent/ broker and are submitted at any of the offices, branches of the AMC as well as the designated investor service centres of the Registrar & Transfer Agent.

II) Applications through the AMC website (as and when this facility is activated by the AMC)III) The investor shall write 'Direct' in the box provided for writing the Name & ARN of the distributor/Agent. In case the

said box is left blank, the same would be processed as 'Direct' application.IV) In case the investor uses an application form / transaction slip wherein the distributor / agent code is pre-printed,

the investor should strike-out the said pre-printed code and write 'Direct'. He should countersign the changes. If the alterations are not counter-signed by the investor, the application will be processed as if no alterations were made.

V. RIGHTS OF UNITHOLDERS

Please refer to SAI for details.

VI. PENALTIES, PENDING LITIGATIONS OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

• All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed.

Not Applicable

• In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed.

HB Portfolio Limited - In relation to certain tradings in the scrip of DCM Shriram Consolidated Ltd. in the year 2001, SEBI has issued Show Cause Notice to the Company under SEBI Act and different SEBI Regulations including SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities market) Regulations, 1995/ 2003 and SEBI (Stock Brokers and Sub- Brokers) Regulations, 1995, etc. The Company had filed Application for passing of Consent Order as per the provisions of SEBI Circular No. EFD/ED/Cir-1/2007 dated 20th April 2007. Subsequently, after attending a hearing in the SEBI offices on March 12, 2008, the Company has made a proposal for the payment of Rs. 5,00,000/- (Rupees Five Lacs Only) towards consent terms.

On July 7, 2008, Company received a mail from the Legal Officer, SEBI, informing that the Consent proposals filed were not adequate, and directing that modified proposals be filed, increasing the amount. The Company has made representation dated July 15, 2008, requesting for re-consideration in the matter, and acceptance of the payment of Rs. 5,00,000.00 towards consent terms.

63


• Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed.

Except as stated in (2) above, no such case exist.

• Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately.

a) Taurus Investment Trust Company Limited has filed the following cases:-1. Rinki Petrochemicals Limited, Baroda for recovery of Rs. 4 Crores. 2. Criminal Complaints u/s 138 Negotiable Instruments Act, against Rinki Petrochemicals Limited and its directors

for dishonour of cheques issued by the company. 3. Criminal Complaints u/s 138 of Negotiable Instruments Act against Motorol India Limited and its directors for

dishonour of cheques issued by the company. 4. Tangerine Informatique Limited for recovery of Rs. 1.3 Crores.

Mutual Fund – Two show cause notices dated 19.08.2008 and 17.11.2005 were received from SEBI in regard to trading in shares of DCM Shriram Consolidated Limited.

After detailed follow up and under consent terms application, the SEBI vide its letter dated 24.09.2008 had imposed penalty of Rs.20 Lacs under denying the guilt category and accordingly vide letter dated October 01, 2008 penalty of Rs.20 Lacs has been paid to SEBI.

• Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency, shall be disclosed.

No such case exists.

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines there under shall be applicable.

For and on behalf of Board of Directors of Taurus Asset Management Company Limited

Place : Mumbai Sd/- Date : 18th May, 2009 Waqar Naqvi Chief Executive Officer

Official Points of Transactions 64


OFFICES OF TAURUS ASSET MANAGEMENT CO. LTD.AHMEDABAD: Broadway Business Center, Cabin no- 1, 1st floor, Sahajanand Complex, Nr Panchvati petrol pump, Opp CITI Bank, C G Road, Ahmedabad – 380006, Tel: 079-32521999 BANGALORE: 1111,East Wing,11th Floor , Raheja Towers, M.G. Road, Bangalore-560001Tel: 080-41135646 CHANDIGARH: Chandigarh Business Centre, Chamber No.2, S.C.O 2441-42, Second Floor,Chamber No -2 Sector 22/ C, Chandigarh 160022 Tel: 0172-5024818/5024838 CHENNAI: Maalavika Centre, 5th Flr, 144/145, K.H.Road ,Nungambakam Chennai-600034 Tel: 044-39101572 COCHIN: 2nd Floor, Mayur Business Centre, Chittoor Road, Pulleppady Junction Cochin-682035 Tel: 0484-3047230/31 DELHI: DCM Building, 3rd Floor, 16, Barakhamba Road, New Delhi-110001. Tel: 011-23321756-631/23717593 HYDERABAD: Office No. 202, 3-6-369/1, Sanatana Ecstacy, Himayatnagar, Hyderabad 500029, Tel: 040-30783060/61 JAIPUR: 302, DBC Towers, M.I.Road , Jaipur 302001 Tel: 0141-4038851 KOLKATA: M. A. Business Centre, Poddar Point (5th Floor), 113, Park Street, Kolkata -700016 Tel: 094335 55772 LUCKNOW: T-303, 3rd Floor,Sky Hi Chambers, Park Road, Lucknow – 226001 Tel: 0522-3040440 MADURAI: No-16/17,A.R Plaza, North veli St,Madurai-625001 Tel: 0452-6454644 MUMBAI: AML Center 1, Gr. Floor, Mahakali Caves Road, Andheri (E),Mumbai 400 093 Tel: 022 - 66242700 MUMBAI: 305, Regent Chambers, 208, Jamnalal Bajaj Marg, Nariman Point, Mumbai - 400021 Tel: 022 - 6753 4848, PUNE: Office No.1,“Suyash Plaza”,189/A, Bhandarkar Institute Road, Deccan Gymkhanna Pune – 411005 Tel: 020-66215712/13

Email: [email protected] • Website: www.taurusmutualfund.com

INVESTOR SERVICE CENTRES OF Register & Transfer Agent – Karvy Computershare Pvt. Ltd.

Agra: Karvy Computershare Private Limited,1St Floor, Deepak Wasan Plaza,Sanjay Place, Agra - 282 002, Ahmedabad: Karvy Computershare Private Limited,201-202,Shail Building,2nd Floor, Opp: Madhusudhan House,Nr. Navrangpura Telephone Exchange, Navrangpura, Ahmedabad - 380 006, Allahabad: Karvy Computershare Private Limited, RSA Towers, 2nd Floor, Above Sony TV Showroom,57, S P Marg, Civil Lines, Allahabad – 211001 Ambala: Karvy Computershare Private Limited,6349, Nicholson Road, Adjacent Kos Hospital, Ambala Cantt, Ambala - 133001, Amritsar: Karvy Computershare Private Limited,72-A, Taylor'S Road, Aga Heritage Gandhi Ground, Amritsar - 143 001, Aurangabad: Karvy Computershare Private Limited,Shop No : 214/215, Tapadiya City Centre,Nirala Bazar, Aurangabad - 431 001,Bangalore: Karvy Computershare Private Limited,No : 51/25, 1 St Floor, Surya Building,Ratna Avenue, Richmond Road,Bangalore - 560 025, Bareilly: Karvy Computershare Private Limited,1st Floor, 165, CivilLines,Opp.Hotel Bareilly Palace, Near Rly Station Road,Bareilly - 243 001, Gujarat, Baroda: Karvy Computershare Private Limited, Piccadilly, Office # 5, First Floor,Opp. Adani Super Market, Jetalpur Road, Baroda - 390007, Bhilai: Karvy Computershare Private Limited, No.138, New Civic CentreBhilai - 490 006, Bhopal: KarvyComputershare Private Limited,Kay Kay Busniss Centre,133 Zone I M P Nagar,Bhopal-462021, Bhubaneswar: Karvy Computershare Private Limited,624, Sahid Nagar, 1St Floor,Bhubaneswar - 751007, Calicut: Karvy Computershare Private Limited,II Nd Floor, Sowbhagya Shoping Complex,Mavoor Road, Calicut - 673 004, Chandigarh: Karvy Computershare Private Limited,Sco-371-372, First Floor,Above Hdfc Bank, Sector 35B,Chandigarh - 160 022, Chennai: Karvy Computershare Private Limited,Flat No F11,First Floor,Akshya Plaza,(Erstwhile Harris Road),Opp Chief City Metropolitan Court,# 108,Adhithanar Salai,Egmore,Chennai - 600 002,Cochin: Karvy Computershare Private Limited,Shop No. Ii, 2Nd Floor, Jewel Arcade,(Above Oriental Insurance Ltd)Layam Road, Cochin - 682 011, Coimbatore: Karvy Computershare Private Limited, 29/1, I 'St Floor,Chinthamani Nagar,Opp To Indian Overseas Bank,Nsr Road,Saibaba Colony,Coimbatore- 641011, Cuttack: Karvy Computershare Private Limited,Dargha Bazar, Opp. Dargha Bazar Police Station,Buxibazar, Cuttack - 753001, Dehradun: Karvy Computershare Private Limited,Kaulagarh Road, Near Sirmaur Marg,Above Reliance Webworld, Dehradun - 248 001, Dhanbad: Karvy Computershare Private Limited, 208, New Market, 2Nd Floor,Katras Road, Bank More,Dhanbad - 826001, Durgapur: Karvy Computershare Private Limited,Old Dutta Automobiles Building,1St Floor, Nachan Road, Benachity,Durgapur - 713 213, Ghaziabad: Karvy Computershare Private Limited,1st Floor, C-7, Lohia Nagar,Ghaziabad - 201 001, Gorakpur: Karvy Computershare Private Limited,Above V.I.P. House, Ajdacent A.D. Girls Inter College,Bank Road, Gorakpur - 273 001,Gurgaon: Karvy Computershare Private Limited,Shop No. 18, Ground Floor,Sector - 14, Opp. AKDTower,Near Huda Office, Gurgaon - 122001, Guwahati: Karvy Computershare Private Limited,54 Sagarika Bhawan, R G Baruah Road,(AIDC Bus Stop), Guwahati 781024, Gwalior: Karvy Computershare Private Limited,Shindi Ki Chawani, Nadi Gate Pul, MLB Road,Gwalior - 474 001,Hubli: Karvy Computershare Private Limited,Giriraja House, No.451/B, Ward No.1,Club Road, Hubli - 580 029,Hyderabad: Karvy Computershare Private Limited,8-2-596 Karvy Plaza, Avenue 4,Street No.1 ,Banjara Hills,Hyderabad - 500 034, Indore: Karvy Computershare Private Limited,Lg - 3, Bombay Trade Centre, Lower Ground Floor,Grand Hotel,Opp Bombay Hospital, Scheme No 54,Indore - 452010, Jaipur: Karvy Computershare Private Limited,S-16 A, 3Rd Floor, Land Mark, Opposite Jaipur Club,Mahavir Marg, C- Scheme, Jaipur - 302 001, Jalandhar: Karvy Computershare Private Limited,Lower Ground Floor, Office No : 3, Arora Prime Tower,Plot No : 28, G T Road, Jalandhar - 144 004, Jamshedpur: Karvy Computershare Private Limited,Kanchan Tower, 3Rd Floor, Chhaganlal Dayalji @ Sons,3-S B Shop Area, ( Near Traffic Signal), Main Road, Bistupur, Jamshedpur- 831 001, Jaunpur: Karvy Computershare Private Limited,R N Complex, 1-1-9-G (In Front of Pathak Honda), Ummarpur, Jaunpur-222 002, Jodhpur: Karvy Computershare Private Limited, 203, Modi Arcade, Chupasni Road,Jodhpur - 342 001, Kanpur: Karvy Computershare Private Limited,15/46, Opp: Muir Mills,Civil Lines, Kanpur - 208001, Kolhapur: Karvy Computershare Private Limited,610 K Vardhaman Chambers,2nd Lane Shahupuri,Kolhapur - 416001, Kolkata: Karvy Computershare Private Limited, 16 Jatin Bagchi Road, Kolkata - 700 029, Kottayam: Karvy Computershare Private Limited,1St Floor , Csi Ascension Church Complex, Kottayam - 686 001, Lucknow: Karvy Computershare Private Limited, 94, Mahatma Gandhi

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Marg,Opp Governor House, Hazratganj,Lucknow - 226 001, Ludhiana: Karvy Computershare Private Limited,Sco-3, Bawa Building, Feroze Gandhi Market,Ludhiana - 141001, Madurai: Karvy Computershare Private Limited,Rakesh Towers, 30-C, Bye Pass Road,Ist Floor, Opp Nagappa Motors,Madurai - 625010, Mangalore: Karvy Computershare Private Limited,2Nd Floor, Brigade Plaza,Kudmul Ranga Rao Road, Mangalore - 575 003, Margao: Karvy Computershare Private Limited,2nd Floor, Dalal Commercial Complex,Opp: Hari Mandir, Pajifond,Margao-Goa -403601, Mathura: Karvy Computershare Private Limited,3538-3540, Infront of BSA College,Gaushala Road, Mathura - 281004, Meerut: Karvy Computershare Private Limited, 1St Floor, Medi Centre Complex, Opp. Icici Bank, Hapur Road,Meerut - 250 002, Moradabad: Karvy Computershare Private Limited, Om Arcade, Parker Road,Above SyndicateBank,Tari Khana Chowk, Moradabad - 244 001, Mumbai: Karvy Computershare Private Limited,DAS Chambers, Ground Floor,Opp. BSE & next to Corporation Bank, Dalal Street, Fort, Mumbai - 400 023, Muzaffarpur: Karvy Computershare Private Limited,1St Floor, Uma Market, Near Thana Gumti,Motijheel, Muzaffarpur, Bihar - 842001, Mysore: Karvy Computershare Private Limited,L - 350 , Silver Tower , Clock Tower, Ashoka Road,Mysore - 570 001, Nagpur: Karvy Computershare Private Limited,Sadoday Arcade, Above Top N Town, Dharampeth, Nagpur - 440 001, Nasik: Karvy Computershare Private Limited, S-12, Second Floor, Suyojit Sankul,Sharanpur Road, Nasik - 422 002, New Delhi: Karvy Computershare Private Limited,2E / 23, Jhandewalan Extn, New Delhi - 110055, Noida: Karvy Computershare Private Limited,307 Jaipuria Plaza, D 68 A, 2nd Floor,Opp Delhi Public School, Sector 26,Noida - 201301, Panjim: Karvy Computershare Private Limited,No.7 & 8, El. Dorado Plaza, Heliodoro Salgado Road,Panjim - 403 001, Patiala: Karvy Computershare Private Limited,Sco 27 D, Chhoti Baradari,Patiala - 147 001,Patna: Karvy Computershare Private Limited,3A, 3rd floor ,Anand tower, Beside chankya cinema hall,Exhibition road, Patna - 800001. Pondicherry: Karvy Computershare Private Limited, First Floor, No.7, Thiayagaraja Street,Pondicherry - 605 001, Pune: Karvy Computershare Private Limited,Srinath Plaza, C Wing, Office No. 58 And 59, 3Rd Floor, Dyaneshwar Paduka Chowk, Survy No. 184/4,F C Road, Pune - 411004, Raipur: Karvy Computershare Private Limited,Room No.12 & 13, Ground Floor, Millennium Plaza, Behind Indian Coffee House, G E Road, Raipur - 492 001, Rajkot: Karvy Computershare Private Limited,104, Siddhi Vinayak Complex,Dr Yagnik Road,Opp Ramkrishna Ashram, Rajkot - 360 001, Ranchi: Karvy Computershare Private Limited,Commerce Towers, 3Rd Floor, Room No. 307,Beside Mahabir Towers, Main Road,Ranchi - 834 001, Renukeet: Karvy Computershare Private Limited, Shop No. 18, Near Complex, Birla Market, Renukeet - 231217 Rourkela: Karvy Computershare Private Limited,1St Floor, Sandhu Complex, Kanchery Road,Udit Nagar, Rourkela - 769 012, Salem: Karvy Computershare Private Limited,49 / 50, Fort Main Road,Old No.17 First Floor, Shevapet, Salem - 636 002, Siliguri: Karvy Computershare Private Limited, Nanak Complex, Near Church Road,Sevoke Road, Siliguri - 734001, Surat: Karvy Computershare Private Limited, G-16 Empire State Building, Nr Udhna Darwaja, Ring Road, Surat-395009, Trichur: Karvy Computershare Private Limited, 2'nd Floor, Brother'S Complex, Near Dhana Laxmi Bank Head Office, Naikkanal Junction, Trichur - 680 001, Trichy: Karvy Computershare Private Limited,60 Srikrishna Arcade, 1St Floor; Thennur High Road,Trichy - 621 017, Trivandrum: Karvy Computershare Private Limited, 2nd Floor, Akshaya Towers, Sasthamangalam, Trivandrum - 695 010, Udaipur: Karvy Computershare Private Limited,201-202, Madhav Chambers, Opp. G.P.O,Chetak Circle, Madhuban, Udaipur-313001, Varanasi: Karvy Computershare Private Limited,D-64/132,KA 1st Floor, Anant Complex,Sigra, Varanasi - 221 010, Vellore: Karvy Computershare Private Limited,No.1, M.N.R. Arcade, Officer'S Line,Krishna Nagar, Vellore - 632001, Vijayawada: Karvy Computershare Private Limited, 39-10-7 Opp : Municipal Water Tank,Labbipet, Vijayawada - 520 010, Visakhapatnam: Karvy Computershare Private Limited,47-14-5/1 Eswar Paradise, Dwaraka Nagar, Main Road, Visakhapatnam - 530 016

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TAURUS ASSET MAN AGEMEN T COMPAN Y LIMITED

Registered Office:Taurus Asset Management Co. Ltd.

305, Regent Chambers 208,J amnalal Bajaj Marg, N ariman Point,

Mumbai - 400021Tel: 022 - 2282 6488 / 2282 6847Fax: 022 - 2283 1018 / 6630 8519

www.taurusmutualfund.com

Name of Mutual Fund

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