Sundaram Tax Saver · Mutual Fund Investments are subject to market risks, ... Sundaram Tax Saver....

Sundaram Tax SaverDecember 2012

1For Private Circulation Only

2

Mutual Fund Investments are subject to market risks, read all scheme related documents

carefully . Copy of the SAI, SID, key information memorandum and application form may also be

obtained from the offices / investor service centres of Sundaram Asset Management, its distributors

and at www.sundarammutual.com

All mutual funds and securities investments are subject to market risks, and there can be no

assurance or guarantee that fund's objectives will be achieved. NAV may go up or down,

depending on the factors and forces affecting the securities market. Main types are market risk,

liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired.

There is uncertainty of dividend distribution and risk of capital loss. Past performance of the

Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors

in the schemes are not being offered any guaranteed or indicated returns.

Sundaram Tax Saver is only the name of the scheme and do not in any manner indicate either

quality or future prospects and returns.

For detailed disclosures on risk factors and disclaimers refer slide 22 & 23

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Tax Saving investment options available

Key Comparables PPF NSC Bank Deposits ULIP ELSS

Lock In Period 15 Years* 6 Years5 Years &

above3 Years 3 Years

Minimum Investment Rs.500 Rs.100 Rs.1,000Depends on

PremiumRs.500

Maximum Deductable

u/s 80CRs.1,00,000 Rs.1,00,000 Rs.1,00,000 Rs.1,00,000 Rs.1,00,000

Interest Frequency Annual Half- yearly

Various

Options

available

Not assured Not assured

Returns 8.0% 8.6%Varies

between banksMarket Linked Market Linked

Taxation of Income Tax Free TaxableTaxable

> Rs10,000Tax Free

Dividend &

Capital Gains

are Tax Free

* Premature part withdrawal facility available after 6 years; Source: www.sbi.co.in,

www.Indiapost.gov.in, www.incometaxindia.gov.in, 80C of the Income Tax Act 1961

4

Multiple Benefits of ELSS: Performance & Tax Saving

An Attractive Opportunity

Fiscal Incentives Stock Market

Save Income Tax Wealth Creation

Rs 1 lakh deduction under

Section 80C will reduce tax

outgo now

Tax-free dividends

No tax on capital gains

A lock-in period of three

years gives sufficient time

for growth in value

Realisation of any wealth

created even during the lock-

in period as dividends

Not just an investment

option for tax savings

but for wealth creation

on a long term basis

Global Outlook – Uncertain times

� Fiscal cliff means lower spending and higher taxes. Effects due to partial fiscal cliff:

� augmenting tax revenues by tapping into the high income households

� payroll tax would rise to 6.2% and would have a nontrivial impact on consumption demand as US

households do not save

� talks on the spending cuts and the debt ceiling are yet to come through

� drop in unemployment is due to drop in labour participation rate

� QE is expected to continue, though there is a drop in the unemployment rate as QE is linked to Fed’s

Forward guidance

� Global recovery continues, but has witnessed weakening in its pace. The Eurozone area is relatively stable,

but will remain volatile until clear steps to a banking union and fiscal integration arise.

� Greece continues to remain in the spot. Though it has secured a deal on a EUR13.5bn. of expenditure cuts,

the Greek budget for 2013 paints a grim picture with govt. debt touching 189% of GDP.

� The Chinese economy sees volatility on account of their re-balancing effort and a regime change at the

Polit bureau level.

� In addition to the growth in the Emerging & Developing Economies (EDEs), global growth rests actions of

Eurozone policy makers to ease the financial conditions in the periphery;

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Domestic Outlook – Uncertain times

• The Current Account Deficit has widened to 5.4% of the GDP and the Fiscal Deficit is expected to grow to

5.6% of the GDP which makes the situation grim.

• On the negative side, the spate of political scandals continue to hinder policy matters.

• On the positive side, we have seen few favourable announcements from the new FM such as FDI in retail,

setting up of National Investment Board.

• We believe that Indian economy is close to the bottom and we expect gradual recovery as we get into

CY13. Key drivers for the recovery would be:

– RBI has indicated high probability of rate-cut in Jan’2013

– Commodity prices have been correcting due to global slowdown, which should help both inflation as

well as twin deficits

– With significant INR depreciation, Indian markets once again have become attractive from foreign

investors’ perspective

• IIP for the month October FY 13 moved up sharply to 8.2% much above the consensus of 5.1% growth

• Though the monsoons were delayed, the latter part of the monsoon season saw a pickup that would

greatly help in augmenting the Rabi crop.

• FY13 is likely to see growth in the range of 5.5 – 5.7% and a probable bottoming out.

• Inflation for FY13 is likely to average above ~7%.

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Product Strategy

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� Cautious on commodities

• China slowdown poses a significant downside

risk to global commodity prices

• With little support from rest of the globe,

commodity prices can remain under pressure

• This, however, bodes well for domestic industry

and inflation

� Key Risks

• Eurozone crisis remains the single largest risk

• Further currency weakness can neutralize lower

commodity advantage

• Continued political paralysis may hinder capex

decisions of corporate India

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Stock Strategy

• Strong management & fundamentals

• long term growth story

• Reasonable valuations

• Low turnover

• No trading calls

• Deliver performance in medium to 3 years

Sector Strategy

• Active sector, stock, trading and cash calls

Portfolio Strategy

• Bottom-up approach

• Aggressive approach towards mid-& small-cap stocks atleast 55%

• Focuses on long term growth story & Large cap stocks

Sundaram Tax Saver

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Portfolio Snapshot

Cipla

State Bank of India

Larsen & Toubro

Indusind Bank

Madras Cements

Done well in the last 6 months due to change in the management; earlier was

working on the partnership model, now moving towards generics; one of the largest

pharma company that was under performing and is back in growth path.

Stock might rally due to change in interest rate cycle; credit cost of the bank has been

reduced; has the strength in numbers; strong growth because of base effect;

One of the biggest south based cement producer; excellent corporate governance;

almost 20% growth in the last cycle; fair amount of capacity available to ramp as and

when demand grows; attractive valuation;

Growing private sector bank; credit cost growth less compared to others; good

management;

With the Government action, the CAPEX sector is reviving; Multiple re-rating

opportunities; growth in the project order books; Dedicated freight corridor projects

& metro projects orders from Middle East

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Top Five Holdings: Rationale

Top 10 stocksWeight in

%

Cipla 5.6

State Bank of India 5.1

Madras Cements 4.4

IndusInd Bank 4.3

Larsen & Toubro 4.1

Bajaj Auto Finance 3.8

Satyam Computers 3.7

Karur Vysya Bank 3.7

Shriram City Union Finance 3.5

Bharti Airtel 3.4

Equity 99.5

Derivatives -

Fixed Income -

Cash 0.5

Average AUM (Rs. In Cr) 1437.8

# of stocks 51

Stock Bets Portfolio

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Madras Cements

Karur Vysya Bank

State Bank of India

Indraprastha Gas

Larson & Toubro

Bharti Infratel

Overweight Underweight

Portfolio Analysis

Market Cap Profile

Weighted Average Market Cap

Rs. 49,082 crore

Median Market Cap

Rs. 16,987 crore

Source: Fact Sheet, Bloomberg

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Metals

Energy -Utilities

Consumer Goods

Cement

Financial Services

IT

Overweight

Underweight

Sector Profile

Sector Bets Preferred Sectors

Source: Fact Sheet

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Performance Snapshot

Fund Benchmark Excess

Since Launch 18.7 12.6 6.1

Last 10 Years 26.9 20.2 6.7

Last 7 Years 13.9 11.5 2.4

Last 5 Years 2.1 -0.5 2.6

Last 3 Years 4.8 4.3 0.5

Last 2 Years -0.2 -1.3 1.1

Last 1 Years 23.2 22.4 0.8

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Value of Rs 1000-a-month SIP

Performance

Consistent outperformance in the long run

Data Source: Bloomberg Analysis: In house ; As of December 2012

Past performance may or may not be sustained in the future

Worth of Rs 10,000 invested at launch

Sundaram Tax Saver: 95,701

BSE 200: 47,469

S&P CNX Nifty: 42,938

Consistent performer over the period

against the benchmark and the broad

market

14Data Source: Bloomberg Analysis: In house ; As of December 2012

Parameter Fund Benchmark

Average Annual Mean 21.21 16.16

Standard Deviation 27.59 28.88

Beta 0.91 1.00

Sharpe Ratio 0.47 0.28

Sortino Ratio 0.78 0.39

Treynor Ratio 14.36 8.07

Benchmark: BSE 200 Index

Risk-Return Metrics are based on month end NAVs since launch and have been annualised

The risk free rate considered for analysis is 8.0907% per annum (10 year T-Bill)

Parameter Fund

Alpha 5.71

Correlation 0.95

Tracking Error 9.04

Information Ratio 0.55

Turnover 110

Risk-Return Metrics


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Value as on December 31, 2012; Data Source: Bloomberg; Analysis: In House

Ahead of the Peers

Fund / Indices One Two Three Five Six Seven Ten

Year Years Years Years Years Years Years

Sundaram Tax Saver 34.47 0.19 4.3 0.46 9.48 12.44 26.86

Average

ELSS 31.55 -0.11 5.73 -0.84 6.93 9.84 23.1

All Equity Funds 30.31 0.21 5.9 0.29 7.87 11.51 22.69

Large-Cap Funds 29.62 0.02 5.72 0.79 8.87 13.04 23.08

BSE 200 30.98 -2.18 3.60 -1.81 6.56 10.74 19.91

BSE Sensex 25.7 -2.67 3.61 -0.86 5.87 10.92 19.1

S&P CNX Nifty 27.7 -1.89 4.32 -0.77 6.84 11.03 18.35

S&P CNX 500 31.84 -2.02 3.09 -2.39 6.25 9.83 19.88

Outpacing average of

ELSS funds; large-cap

funds & all equity funds

and broad markets on a

long-term basis

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Fund Facts

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Allotment Date November 1999

NAV (December 31, 2012) Growth: Rs 47.9910 Dividend: Rs 11.3176

Objective To achieve capital appreciation by investing predominantly in equities

and equity-related instruments. A three-year lock-in period shall apply

in line with the regulation for ELSS Schemes

Asset allocation Equity and Equity related Instruments :: 80-100%

Corporate & PSU bonds :: Upto 20%

Money Market Instruments :: up to 20%

Plans Regular & Direct

Options Growth, Dividend (Pay Out, Reinvestment & Sweep); Default Option:

Growth; Default Sub-Option: Dividend Sweep

Load Structure Terms Of Offer: NAV; Exit Load: Nil for redemption after lock-in period

of 36 months.

Minimum Subscription

Amount

First Investment: Rs 500 Subsequent Purchase: Rs 500

SIP: Rs 1000 per week Rs 250 per month Rs 750 per quarter

Weekly SIP will be processed on Wednesdays

Data Source: Fact Sheet

Fund Facts

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Fund Manager Profile

J Venkatesan has been with Sundaram Asset Management as fund manager for more thanseven years now. With a rich experience of close to ten years in fund management, hejoined Sundaram Asset Management in January 2006.

Funds Managed

He jointly manages Sundaram Tax Saver with Ms. Srivjdhya Rajesh

Qualification & Previous Work Experience

He is a CFA charter holder and a Cost Accountant and a Post-Graduate in Commerce. Aseven-year stint at Canara Bank was followed by a shift to the asset management industrythrough Canbank Mutual Fund (now Canara Robeco).

Srividhya Rajesh has been with Sundaram Mutual for over fifteen years. She brings richexperience to fund management having tracked markets through several bullish andbearish phases.

She jointly manages Sundaram Tax Saver with Mr J Venkatesan

Qualification & Previous Work Experience

She is a CFA charter holder and is a management graduate from BITS Pilani. She has alsodone a specialised course in equity research and financial applications from ICFAI

A two-year stint at the broking arm Kotak Mahindra opened a window to the equitymarkets before she joined Sundaram Mutual in 1996.

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Returns are on a compounded annual basis for period more than one year & absolute for one-year

period based on NAV of Regular Plan (Growth Option) and is as of December 31, 2012. Value of

10,000 invested at inception is as on December 31, 2012.

Growth Fund Annualised returns (%)

Fund

BSE 200

(Benchmark)

S &P CNX Nifty

(Broad Market)

Excess over

Benchmark

Since Inception 18.8 12.6 11.7 6.2

31/12/2011 - 31/12/2012 (%) 34.5 31.0 27.7 3.5

31/12/2010 - 31/12/2011 (%) -25.4 -27.0 -24.6 1.6

31/12/2009 - 31/12/2010 (%) 13.1 16.2 17.9 -3.16

Last 3 Years 4.3 3.6 0.7

Last 5 Years 0.5 -1.81 2.3

Last 8 Years 17.5 13.4 4.1


Sundaram Tax Saver - Performance

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Since Inception

Fund

31/12/11 to

31/12/12

31/12/10 to

31/12/11

31/12/09 to

31/12/10 Returns 10000

Select Focus 21.6 (23.7) 12.5 23.4 89,449

Benchmark 27.7 (24.6) 17.9 19.0 61,470

S&P CNX Nifty 27.7 (24.6) 17.9 19.0 61,470

Tax Saver 34.5 (25.4) 13.1 18.8 95,701

Benchmark 31.0 (27.0) 16.2 12.6 47,469

S&P CNX Nifty 27.7 (24.6) 17.9 11.7 42,938

Growth Fund 29.2 (27.2) 17.6 17.9 132,146

Benchmark 31.0 (27.0) 16.2 12.8 66,618

S&P CNX Nifty 27.7 (24.6) 17.9 11.5 55,333

Rural India 34.1 (23.1) 20.8 8.4 17,091

Benchmark 31.2 (27.4) 16.4 6.7 15,379

S&P CNX Nifty 27.7 (24.6) 17.9 7.5 16,178

Financial Services 47.1 (32.9) 35.5 17.6 20,965

Benchmark 56.5 (32.4) 30.6 18.2 21,454

S&P CNX Nifty 27.7 (24.6) 17.9 6.4 13,270

Entertainment Opportunities 38.5 (32.6) 1.3 8.1 14,218

Benchmark 69.5 (30.2) 20.6 4.9 12,425

S&P CNX Nifty 27.7 (24.6) 17.9 5.8 12,914

PSU Opportunities 14.0 (26.8) (0.4) 9,880

Benchmark 8.9 (31.1) (11.8) 6,884

S&P CNX Nifty 27.7 (24.6) 4.0 11,249

Performance of other funds managed by J Venkatesan




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Performance of other funds managed by Srividhya RajeshSince Inception

Fund

31/12/11 to

31/12/12

31/12/10 to

31/12/11

31/12/09 to

31/12/10 Returns 10000

Tax Saver 34.5 (25.4) 13.1 18.8 95,701

Benchmark 31.0 (27.0) 16.2 12.6 47,469

S&P CNX Nifty 27.7 (24.6) 17.9 11.7 42,938

Select Focus 21.6 (23.7) 12.5 23.4 89,449

Benchmark 27.7 (24.6) 17.9 19.0 61,470

S&P CNX Nifty 27.7 (24.6) 17.9 19.0 61,470

CAPEX 19.3 (39.7) 5.1 8.7 18,314

Benchmark 34.7 (47.7) 9.2 11.5 22,037

S&P CNX Nifty 27.7 (24.6) 17.9 11.9 22,615

Equity Plus 14.5 - - 6.9 11,126

Benchmark 22.3 - - 11.2 11,882

S&P CNX Nifty 27.7 - - 5.8 10,946

Energy Opportunities 12.6 -24.6 0.3 -6.0 7,331

Benchmark 13.1 -29.0 1.2 -8.5 6,414

S&P CNX Nifty 27.7 -24.6 17.9 -0.8 9,611

Balanced Fund 21.7 -20.4 13.0 13.6 95,701

Benchmark 21.3 -14.4 -24.6 - 47,469

S&P CNX Nifty 27.7 -24.6 17.9 11.7 42,938




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DisclaimerMutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of

the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram Asset Management, its distributors and at

www.sundarammutual.com. Fund Facts: Name: Sundaram Tax Saver; Type: Open-end equity-linked savings scheme; Investment Objective; To seek capital appreciation by investing

predominantly in equities and equity-related instruments; Asset Allocation: Equity and equity linked instruments: 80%-100% Corporate and PSU Bonds up to 20% Money market instruments:

up to 20 %. Benchmark: BSE 200 Index. Minimum amount is Rs 500 and multiples of Rs 1. Terms of offer: NAV. Exit load: nil for redemption after lock-in period of 36 months. There is no

entry/exit load for bonus units and dividend re-investment. NAV publication/sale/redemption will be done on all business days. An investment in this scheme also qualifies for deduction under

Section 80C of the Income Tax Act subject to a lock-in period of three years from the date of allotment.

Disclaimers: Value Research Rating: Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the

weighted-average monthly returns for the past three- and five-year periods. These ratings do not take into consideration any entry or exit load. Five-stars indicate that a fund is in the top 10 per

cent of its category in terms of historical risk adjusted returns and four stars indicate that a fund is in the next 22.5 per cent of its category.The number of schemes in the relevant category of

Equity Tax Planning Schemes is 28. These fund ratings are as on December 31, 2010 Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight.

The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds. Value Research does not guarantee the accuracy. Past performance is no

guarantee of future result. Source: Value Research

Comparison with ELSS funds: The returns for the ELSS funds are based on the average for the category of Value Research. The number of schemes in the ELSS-cap category is given in the

accompanying table. This comparison does not reflect the effect of objectives, style, asset allocation, entry load, exit load and fess & expenses. This is not intended for ranking purposes and

does not also constitute ranking. This is only meant for comparison purposes.

The number of schemes covered for different periods is given in the accompanying table.

Number of 1 2 3 5 6 7

schemes Year Years Years Years Years Years

ELSS 42 42 42 30 26 22

Mid-cap funds 20 20 20 18 15 13

All-equity funds 345 344 332 253 202 176

Large-cap funds 19 19 18 16 16 13

This comparison does not reflect the effect of objectives, style, asset allocation, entry load, exit load and fees & expenses. This is not intended for ranking purposes and does not also constitute

ranking. This is only meant for comparison purposes. The average of returns for the all equity schemes and mid-cap category has been sourced from the Value Research Daily Performance

Report. The average returns are as on December 31, 2010 and is based on compounded annual returns (computed using NAV of the Growth Option and/or NAV adjusted dividend reinvestment)

for more than one year. Past performance is no guarantee of future result. Comparison with all equity funds’ returns: The returns for all equity diversified funds comprise all funds classified in

Equity Diversified and Tax-Planning categories by Value Research. The funds in the two categories have been considered together and there has been no separate sub-classification by

Sundaram Asset Management. The number of schemes covered for different periods is given in the accompanying table. This comparison does not reflect the effect of objectives, style, asset

allocation, entry load, exit load and fess & expenses. This is not intended for ranking purposes and does not also constitute ranking. This is only meant for comparison purposes.Comparison

with large-cap funds: The returns for the large-cap funds is based on the average of returns of a sub-category created by Sundaram Asset Management from the broad category of funds

classified as equity diversified by Value Research. This sub-category includes funds that consistently invest at least 85%-90% in large-cap stocks. The funds have been chosen in good faith based

on the allocation to the top 50 stocks by market cap and the consistency in maintaining such a profile. The number of schemes in the large-cap category is given in the accompanying table. This

comparison does not reflect the effect of objectives, style, asset allocation, entry load, exit load and fess & expenses. This is not intended for ranking purposes and does not also constitute

ranking. This is only meant for comparison purposes.

23

DisclaimerRanking Disclaimer: The ranking for Sundaram Tax Saver indicated in this document is based the equity tax planning schemes category of Value Research. This category

comprises 33 schemes. Performance data and ranking for the indicated periods for schemes in this category has been provided by Value Research. In the full category of

equity tax planning schemes of Value Research, the ranking is given in the accompanying table. The performance for ranking purposes has been reckoned as on December

31,2010 and is based on compounded annual returns (computed using NAV of the Growth Option and/or NAV adjusted dividend reinvestment) for more than one year. The

comparison does not take account into scheme-specific features such as launch period entry/exit loads, expenses and fees, to name a few. Attributes such as style and

portfolio composition may also differ. Past performance is no guarantee of future result. Quartile Disclaimer: The ranks derived on the basis of the methodology described in

the Ranking Disclaimer has been used as the basis for categorising funds into first quartile (top 25% of funds by rank), second quartile (the second 25% by rank), third quartile

(the third 25% by rank) and fourth quartile (the fourth 25% by rank). For example, if there are 100 funds, funds ranked between 1-25 will be quartile I, 26-50 Quartile 2, 51-75

Quartile 3 and 76-100 Quartile 4. The research on historical performance on which the quartiles and ranking are based has been sourced from Value Research, NAV India (an

independent third party vendor of fund intelligence in India) and Bloomberg. The performance for ranking purposes has been reckoned December 31,2010. The analysis of

the information has been carried in good faith in-house by Sundaram Asset Management. The comparison does not take account into scheme-specific features such as

specific asset allocation pattern, specific cap-curve or thematic orientation, entry/exit loads, expenses and fees and respective benchmarks for each fund considered for

analysis. Attributes such as style and portfolio composition may also differ though the funds invest predominantly in equity and this latter aspect provides a common thread

for creating a sub-category of comparable funds. Past performance does not guarantee future result.

Scheme-Specific Risk Factors: Change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors.

General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be

achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic

risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset

Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram Tax

Saver is only the name of the scheme and does not in any manner indicate either quality or future prospects and returns.

General Disclaimer: This document is issued by Sundaram Asset Management; an investment manager registered with the Securities and Exchange Board of India in India

and is produced for information purposes only. It is not a prospectus, scheme information document, offer document, offer and solicitation, to name a few, to buy any

securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied upon as

authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of

any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or

commitment whatsoever or be taken as investment advice.The information and opinions contained in this communication have been obtained from sources that Sundaram

Asset Management believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be

relied upon as such. Sundaram Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time.

This communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use or reproduction of

this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations.

This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive it and

Sundaram Asset Management is not soliciting any action based on this document. Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, 1882

Sponsors. Liability for sponsors is limited to Rs 1 lakh. Sponsors: Sundaram Finance Ltd & Asset Management. Investment Manager: Sundaram Asset Management Company

Ltd. Trustee: Sundaram Trustee Company Ltd.

Sundaram Tax Saver · Mutual Fund Investments are subject to market risks, ... Sundaram Tax Saver....

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