OPEN ENDED SCHEMES by rma97348

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									                                     Common Offer Document


                             OPEN ENDED SCHEMES
                                                  DEBT SCHEMES
                                           Birla Sun Life Monthly Income
                   (Monthly income is not assured and is subject to availability of distributable surplus.)
                                          Birla Sun Life Income Fund
                                 Birla Sun Life Government Securities Fund
                                         Birla Sun Life Cash Manager
                                        Birla Sun Life Short Term Fund

                                                 EQUITY SCHEMES
                                         Birla Sun Life New Millennium Fund
                                             Birla Sun Life Buy India Fund
                                         Birla Sun Life Basic Industries Fund
                                              Birla Sun Life Equity Fund
                                         Birla Sun Life Capital Tax Relief '96
                                                 Birla Sun Life '95 Fund
                                         Birla Sun Life Frontline Equity Fund



This Offer Document sets forth concisely the information about the Schemes that a prospective investor ought to know before
investing. The Offer Document should be retained for future reference.
The particulars of this offering have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996, as amended till date and filed with SEBI. The Units offered for public subscription have neither been approved nor
disapproved of by SEBI, nor has SEBI certified the accuracy or adequacy of the Offer Document. The Offer Document will remain
effective till a material change occurs. Such changes shall be filed with SEBI, circulated to unit holder alongwith quarterly and half
yearly reports, and attached to the Offer Document.
No person has been authorised to give any information or to make any representations not confirmed in this Offer Document in
connection with the offer or the issue of Units, and any information or representations not contained herein must not be relied upon as
having been authorised by the mutual fund or the investment manager.
This Revised & Updated Common Offer Document is dated November 30, 2006
                           Continuous offer of open -ended schemes at NAV linked prices
            Sponsors                 Investment Manager                    Trustee
  Birla Global Finance Limited              Birla Sun Life               Birla Sun Life
  (Since Merged with Aditya            Asset Management           Trustee Company Private
       Birla Nuvo Limited)               Company Limited                    Limited
       Apeejay, 2nd Floor,            2nd Floor, Tower A,           2nd Floor, Tower A,
   Shahid Bhagat Singh Marg,               Ahura Centre,                Ahura Centre,
               Fort                   Mahakali Caves Road,          Mahakali Caves Road,
        Mumbai - 400 023.                 Andheri (East),              Andheri (East),
       Sun Life (India)                 Mumbai - 400 093             Mumbai - 400 093.
  AMC Investments Inc.               Tel. : +91-22 66928000       Tel. : +91-22 66928000
     150 King Street West           Fax : +91-22 66928111         Fax : +91-22 66928111
             Toronto
      ON Canada M5H 1J9

    AUDITORS TO THE                        REGISTRARS                            CUSTODIAN
      MUTUAL FUND                COMPUTER AGE MANAGEMENT                   J.P. Morgan Chase Bank
  S. R. BATLIBOI & CO.            SERVICES PVT. LTD. (CAMS),                    Mafatlal Centre,
 18th Floor, Express Tower,       A & B Laxmi Bhawan, 609, Anna            9th Floor, Nariman Point,
       Nariman Point,                Salai, Chennai - 600 006.                 Mumbai - 400 021.
      Mumbai 400 021


Mutual Fund Schemes are subject to market risks. Investors are requested to read the offer document carefully for

details on risk factors before investment. There can be no assurance that the Schemes will achieve their objectives.

The value of the Schemes' investments may be affected by factors affecting capital markets generally, such as price

and volume volatility in the fixed-income and stock markets, interest rates, currency exchange rates, foreign

                                                 o
investment, changes in governmental policy, taxati n, political, economic or other developments and closure of the

stock exchanges. Consequently, the Net Asset Value of the Schemes may fluctuate, and the value of the Schemes'

Units may go up or down. Past performance of mutual funds managed by the Sponsor and its affiliates is not

necessarily indicative of future performance of the Scheme. The names of the Schemes do not in any manner indicate

the quality of the Schemes, their future prospects or returns. See section 5.14 General and Scheme Specific

Risk Factors. Investors, therefore, are urged to study the terms of the Offer carefully before they invest in the

Schemes and to retain this Offer Document for future reference.



No person has been authorised to give any information or to make any representations not confirmed in this Offer

Document in connection with the Offer or the issue of Units, and any information or representations not contained

herein must not be relied upon as having been authorised by the Mutual Fund or the Asset Management Company.



In this Offer Document all references to "US$" or "$" are to United States Dollars and "Rs." are to Indian Rupees.




                                                                                                                     2
TABLE OF CONTENTS

                                                                                       Page
Glossary of Defined Terms...................................................             4
Risk Factors........................................................................     6
Due Diligence Cert ificate......................................................         8
1.   Expenses.....................................................................       9
2.   Aditya Birla Group .........................................................        40
3.   Constitution of the Mutual Fund......................................               40
4.   The Asset Management Company..................................                      45
5.   Birlal Mutual Fund -
     Investment Objectives, Policies and Limitations of the Schemes
     –     Debt Schemes.......................................................           50
     –     Equity Schemes......................................................          57
6.   BMF Schemes' Features and Information Relating to the Units on Offer
     –     Debt Schemes.......................................................           76
     –     Equity Schemes......................................................          78
7.   Redemption and Switch (i.e. Liquidity Provisions)...............                    85
8.   Investors' Rights and Services .........................................            89
9.   Unitholder Information ..................................................           91
10. Dividends.....................................................................       93
11. Taxation......................................................................       94
12. Valuation of Assets and Net Asset Value .........................                    97
13. General Information......................................................            102
14. CAMS Investor Service Centres                                                        106




                                                                                               3
                                         GLOSSARY OF DEFINED TERMS
“BSLMI”                 Means Birla Sun Life Monthly Income
“BSLIF”                 Means Birla Sun Life Income Fund
“BSLGSF”                Means Birla Sun Life Government Securities Fund
“BSLCM”                 Means Birla Sun Life Cash Manager
“BSLSTF”                Means Birla Sun Life Short Term Fund
“BSLNM”                 Means Birla Sun Life New Millennium Fund
“BSLBI”                 Means Birla Sun Life Buy India Fund
“BSLBAS”                Means Birla Sun Life Basic Industries Fund
“BSLEF”                 Means Birla Sun Life Equity Fund
“BSLTR”                 Means Birla Sun Life Tax Relief '96
“BSL'95”                Means The Birla Sun Life '95 Fund
“BSLFEF”                Means Birla Sun Life Frontline Equity Fund
“SIP”                   Means Systematic Investment Plan
“SWP”                   Means Systematic Withdrawal Plan
“STP”                   Means Systematic Transfer Plan


“Asset Management Means Birla Sun Life Asset Management
Company or AMC” Company Limited.




Applicable NAV              The NAV applicable for purchase or redemption or switching, based on the Business Day and
                  relevant cut-off time on which the application is accepted at the official points of acceptance.


“Business Day”             A day other than:
    •     Saturday and Sunday or
    •     A day on which the banks in Mumbai and / RBI are closed for business /clearing or
    •     A day on which the Bombay Stock Exchange Ltd or National Stock Exchange of India Ltd Mumbai is closed or
    •     A day, which is a public and /or bank holiday at a Investor Service Centre where the application is received or
    •     A day on which Sale and Repurchase of Units is suspended by the AMC or
    •     A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other
          events as the AMC may specify from time to time.
The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres
at any or all nvestor Service Centres.
“Call Money/ Refers to the money lent by Mutual Funds in the Interbank Call Money Market, subject to necessary
regulatory
Money at Call”             approvals
“CAMS ISC or ISC” Means Investor Service Centres
“CAMS or Transfer Means Computer Age Management
Agent or Registrar” Services Private Limited.
“CBDT”                  Means Central Board of Direct Taxes
“CDSC”                  Means contingent deferred sales charge, a charge imposed when the Units are redeemed within
                        the first four years of Unit ownership. The SEBI (MF) Regulations, 1996 direct that a CDSC may
                        be charged only for the first four years after purchase and mandates the maximum amount that
                        can be charged in each year.
“Custodian”             Means J.P. Morgan Chase Bank

                                                                                                                            4
“DDs”               Means Demand Drafts
“DTAA”              Means Double Taxation Avoidance Agreement
“ELSS”              Means Equity Linked Savings Scheme, 1992 and Equity Linked Savings (Amendment) Scheme,
                    1998
“FCNR”              Means Foreign Currency Non-Resident Accounts
“FERA”              Means Foreign Exchange Regulation Act
“FEMA”              Means Foreign Exchange Management Act
“FII”               Means Foreign Institutional Investor
“IBA”               Means Indian Banks Association
“Investor of record”     An Investor whose name appears in the Unitholders' register on the record date.
“Investment Management Agreement” The agreement dated December 16, 1994 entered into between Birla Sun
                 Life Trustee Company Private Limited and Birla Sun Life Asset Management Company Limited,
                 as amended from time to time.
“Local cheque”      Means a cheque handled locally and drawn on any bank which is a member of the Banker's
                    Clearing House located at the place where the Application Form is submitted
“Mutual Fund or BMF”              Means Birla Mutual Fund
“Net Asset Value or NAV”          Means the value of one Unit of the Scheme calculated on each Business Day
“NRE Account”       Means Non-Resident External Account
“NRIs”              Means Non Resident Indians as defined by the Reserve Bank of India or by FERA / FEMA
“NRSR Account”      Means Non-Resident Special Rupee Account
“"OTCEI”            Means Over-the-Counter Exchange of India
“PIO”               Means Person of Indian Origin
“POP”               Means Public Offer Price i.e. the price at which an investor can buy Units of the Scheme
“RBI”               Means Reserve Bank of India
“Load”              In the case of Repurchase / Redemption / Switch out of a Unit, the sum of money deducted
                    from the Applicable NAV on the Repurchase / Redemption / Switch out and in the case of Sale /
                    Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch
                    in of a Unit in addition to the Applicable NAV.
“Entry Load” or     Load on Sale / Switch in of Units
“Sales Load”


“Exit Load” or         Load on Repurchase / Redemption / Switch out
“Repurchase
Load” or “Redemption Load”


“Schemes”           Means Schemes of Birla Mutual Fund
“SEBI (MF) Regulations,    Means Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as
                     amended from time to time.
1996” / “Regulations”


“SEBI”              Means Securities and Exchange Board of India
                                                imited (‘Since mergered with Aditya Birla Nuvo Limited) and Sun
“Sponsor or Settlor” Means Birla Global Finance L
                   Life (India) AMC Investments Inc.(a wholly owned subsidiary of Sun Life Financial Services of
                   Canada Inc.
“Switch In /                                                                                      a
                        Means a charge incurred to switch from one scheme to another within the s me mutual fund
family or to switch from or Exchange Fee”        one Investment Plan (i.e. Unit Class) to another within the same
Scheme.


                                                                                                                 5
“BSLSS”                  Means Birla Sun Life Sector Select Series
“Trustee”                Birla Sun Life Trustee Company Private Ltd., incorporated under the provisions of the Companies
                         Act, 1956 and approved by SEBI to act as Trustee to the schemes of Birla Mutual Fund.
“Trust Deed”             Means the Trust Deed dated December 16, 1994 (read with all amendments and supplemental
                         trust deeds thereto) made by and between the Sponsor and Birla Sun Life Trustee Company
                         Private Limited (“Trustee”), thereby establishing an irrevocable trust, called Birla Mutual Fund,
                         as amended from time to time.
    “Unit”               Means one share of a Scheme
“Unitholder”             Means an investor in a Scheme
“the Act”                 Means the Income Tax Act, 1961

Interpretation
For all purposes of this Offer Document, except as otherwise expressly provided or unless the context otherwise
requires, the terms defined in this Offer Document include the plural as well as the singular. Pronouns having a
masculine or feminine gender shall be deemed to include the other. Words and expressions used herein but not
defined herein shall have the meanings respectively assigned to them therein under the SEBI Act or the SEBI
Regulations..
RISK FACTORS

l      Mutual funds and securities investments are subject to market risks and there can be no assurance or guarantee
       that a Scheme's objectives will be achieved.

l      As with any investment in securities, the Net Asset Value of the Units issued under any Scheme can go up or
       down depending on factors and forces affecting capital markets.

l      The past performance of the mutual funds managed by the Sponsor and its affiliates including the Asset
       Management Company / Mutual Fund is not indicative of future performance of the Scheme(s).

l      The names of the Schemes do not in any manner indicate the quality of the Schemes, their future prospects or
       returns.

l      The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond the initial
       contribution of an amount of Rs. 1 lakh made by it toward setting up the Mutual Fund or such other amounts
       lying in the corpus from time to time.

                                                                                                    nd
       Mutual Funds are vehicles of securities investments that are subject to market a other risks and there can be
       no guarantee against loss resulting from investing in the Scheme. The various factors that impact the value of
       the Scheme' investments include, but are not restricted to, fluctuations in the bond markets, fluctuations in
       interest rates, prevailing political and economic environment, changes in government policy, factors specific to the
       issuer of the securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes etc.

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

       Neither this Offer Document nor the Units have been registered in any jurisdiction. The distribution of this Offer
       Document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into
       possession of this Offer Document are required to inform themselves about, and to observe, any such restrictions.

l      For the scheme Birla Sun Life Monthly Income, Monthly income is not assured and is subject to availability of
       distributable surplus .

l      The liquidity of the Schemes' investments is inherently restricted by trading volumes and settlement periods. In
       the event of an inordinately large number of redemption requests, or of a re-structuring of the Schemes'
       investment portfolio(s), these periods may become significant.




                                                                                                                          6
Risks associated with stock 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
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.


Risks associated with Derivatives trading :
The Fund may use derivative instruments like interest rate swaps, forward rate agreements or other derivative
instruments, as permitted under the Regulations and guidelines.
As and when the 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 also 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 rat e movements correctly. There is a
possibility that loss may be sustained by the portfolio as a result of the failure of another party (usually referred 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. Thus, derivatives are highly leveraged instruments. Even a small price movement
in the underlying security could have a large impact on their value.
Since derivatives would be used as a risk management tool, up to 100% of the Scheme's net assets in the equity
component of the portfolio may be utilised for derivatives trading.
Risks in investing in ADR/GDRs are:
l   To the extent that the schemes invest in securities denominated in other currencies, the Indian rupee value of the
    investments, distributions and income may be affected by changes in the value of the relevant foreign currency
    relative to the Indian Rupee.
    Offshore investments in ADR/GDRs will be made subject to any/all approvals, conditions as may be stipulated by
    RBI and SEBI. The Fund will ensure that such investments do not result in expenses to the Fund, in excess of the
    ceilings prescribed under SEBI Regulations and will be consistent with the costs and expenses attendant to
    investing in such instruments. The Fund will, wherever necessary, appoint other intermediaries of repute as
    custodian/sub-custodians for managing and administering such investments. The appointment of intermediaries
    shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses.
    The Schemes will commence investment in ADR / GDRs subject to the regulatory approvals and after the Trustee
    is satisfied that investments would be made in conformity with the Schemes' investment objectives, proper
    systems and procedures are adopted and overseas service providers having sufficient experience, competence
    and a satisf actory regulatory track record are appointed by the Fund.
The maximum exposure of a Scheme to ADR/GDRs shall be 10% of the Scheme's net assets subject to the overall cap
as specified by SEBI. The 10% limit will be monitored and adhered to in the same manner in which the mutual fund
complies with various investment restrictions laid down in Schedule VII to the SEBI (Mutual Funds) Regulations unless
specified otherwise by the Regulator(s).


•   Minimum number of investors and minimum holding by single investor:
    A s per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No. 10/22701/03, each scheme and individual
    plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more
    than 25% of the corpus of such scheme/plan(s). In case of non-fulfillment with either of the above two conditions
    in a three months time period or the end of succeeding calendar quarter, whichever is earlier, from the close of
    the New Fund Offer (NFO) or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound
    up by following the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV.
    SEBI has, vide its Circular No. SEBI/IMD/CIR No.1/42529/05 dated June 14, 2005, further clarified that the
    foresaid Circular would be applicable at the Portfolio level. For determining the holding by single investor above
    25% limit, the average of daily holding by each such investor over the quarter would be considered. If the holding
    by such investor exceeds 25% limit over the quarter, rebalancing period of one month would be allowed and
    thereafter 15 days notice shall be given to the investor to redeem his exposure over the 25% limit within 15 days.
    In case, if the investor fails to redeem his exposure over 25%, it would lead to automatic redemption by the
    Mutual Fund on the applicable NAV on the 15th day of the notice period.

                                                                                                                        7
    Investors should study this Offer Document carefully in its entirety and should not construe the contents hereof as
    advise relating to legal, taxation, investment or any other matters. Investors may, if they wish, consult their legal,
    tax, investment 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 Units.

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

Please read section 5.14 "General and Scheme Specific Risk Factors" and section 7.8, "Right to Limit
Redemptions".
DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
A Due Diligence Certificate, duly signed by the Compliance Officer of Birla Sun Life Asset Management Company
Limited, has been submitted to SEBI on November 30, 2006 which reads as follows:



DUE DILIGENCE CERTIFICATE
It is confirmed that:
    •    This Common Offer Document forwarded to SEBI is in accordance with the Securities and Exchange Board of
         India (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.
    •    All legal requirements connected with the launching of the schemes and also the Guidelines, instructions, etc.
         issued by the Government of India and any other competent authority in this behalf, have been duly complied
         with.
    •    The disclosures made in this Common Offer Document are true, fair and adequate to enable the investors to
         make a well-informed decision regarding investments in the proposed Schemes.
    •    According to the information given to us, J.P.Morgan Chase Bank, the Custodian to the Scheme, is registered
         with SEBI and till date, such registration is valid.
    •    According to the information given to us, Computer Age Management Services Ltd (CAMS), the Registrar and
         Transfer Agent to the Scheme, is registered with SEBI and till date, such registration is valid.


                                                                                                              Signed: sd/-
                                                                                                  Name: Sharmila Ranade
                                                                                           Designation: Compliance Officer
Place: Mumbai
Date: November 30, 2006




                                                                                                                        8
1.   EXPENSES
1.1 Unitholder Transaction Expenses and Sales / Redemption / Repurchase Load
The following table sets forth by scheme the sales load and fees to which a prospective investor or existing Unitholder
is currently subject :
EQUITY SCHEMES
Particulars (As a %           BSLSS            BSLEF               BSLTR                 BSL’95                  BSLFEF
of applicable NAV)
Sales Load imposed on            #                #                   #                     #                       #
purchase of units (%
of NAV)

Sales load on issue of           Nil              Nil                 Nil                   Nil                     Nil
units    in   lieu  of
dividend (% of NAV)
Contindent      deferred         Nil              Nil                 Nil                   Nil                     Nil
sales charged (CDSC)
Redemption/                     ##                Nil                 Nil                   Nil                     Nil
Repurchase Load
#     • For Purchase / Switch-in of units less than Rs. 5 Crores in value: 2.25%
      • For Purchase / Switch-in of units equal to or greater than Rs. 5 Crores in value: Nil
##       • Birla Sun Life Basic Industries Fund and Birla Sun Life Buy India Fund : For any Redemption/ Swit ch-out of
units within six months from the date of Allotment: 1%
         • Birla Sun Life New Millenium Fund: Nil
DEBT SCHEMES
Particulars (As a %         BSLMI          BSLIF             BSLGSF                BSLCM                  BSLSTF
of applicable NAV)



Sales Load imposed on            Nil              Nil                 Nil                   Nil                     Nil
purchase of units (%
of NAV)
Sales load on issue of           Nil              Nil                 Nil                   Nil                     Nil
units    in   lieu  of
dividend (% of NAV)
Contindent      deferred         Nil              Nil                 Nil                   Nil                     Nil
sales charged (CDSC)
Redemption/                      #               ##                   Nil                   Nil                     Nil
Repurchase Load



#       • For any Redemption/Switch-Out of units within twelve months from the date of Allotment: 1%


##    • For each Purchase / Switch in of Units, upto and including Rs. 10 lacs in value, an Exit Load of 0.60% is
      payable if Units are Redeemed / Switched out within 180 days from the date of allotment.
      • For Purchase / Switch in of Units, greater than Rs. 10 lacs in value, no exit load is payable.

 Note : (1) Where as a result of a Redemption/ Switch out arising out of excess holding by an investor beyond 25%
          of the net assets of the scheme in the manner envisaged under SEBI Circular dated December 12, 2003 ref
          SEBI/IMD/CIR No. 10/22701/03 read with Circular dated June 14, 2005 ref SEBI/IMD/CIR No. 1/42529/05,
          such Redemption / Switch will not be subject to Exit load.
        (2) No entry load is applicable for switches between any of the equity schemes.
       (3) For investments by Fund of Funds Scheme(s) in various Schemes of Birla Mutual Fund, there would be no
       entry load / exit load charged by the underlying Schemes.

                                                                                                                          9
Purchase and redemption price using the above loads shall be arrived at as under:

Public Offer Price (Sales Price) = NAV X (1 + Sales Load) and Redemption Price = NAV X (1 - Redemption Load).
Thus, if the NAV is Rs. 10 and sales / entry load is 2% and exit / redemption load is 2%, then the respective sales
price will be Rs. 10.20 and the redemption price shall be Rs. 9.80. Birla Mutual Fund Fund (the Mutual Fund) reserves
the right to change the load structure at any time subject to compliance with SEBI (MF) Regulations, 1996 (       see
section 7.2, Procedure for change in load structure).
1.2 Initial Issue Expenses for the Schemes launched in last one year
Income Schemes: Birla Fixed Term Plan – Series D, E, F, G, H, L, Birla Fixed Term Plan- Quarterly Series 1, 2 & 3 and
were launched during the last one-year. The initial issue expenses for the above schemes/plans were borne by the
AMC.
Growth Schemes: Birla India GenNext Fund, Birla Top 100 Fund, Birla Infrastructure Fund and Birla Long Term
Advantage Fund were launched during the last one year. The Initial issue expenses for Birla India GenNext Fund, Birla
Top 100 Fund and Birla Infrastructure Fund were 3.47%, 3.75% and 3.70% respectively of the resources raised by
the scheme.The comparison of estimated expenses of Birla India GenNext Fund, Birla Top 100 and Birla Infrastructure
Fund to actual expenses charged to the scheme is given as under:

Expense       Estimated Actuals % Estimated Actuals %                Estimated Actuals %      Estimated Actuals % to
Head          % to        to           % to       to                 % to        to           % to       Subscription
              Target      Subscription Target     Subscription       Target      Subscription Target
              Amount                   Amount                        Amount                   Amount
              Birla India GenNext      Birla Top 100 Fund            Birla Infrastructure     Birla Long Term
              Fund                                                   Fund                     Advantage Fund
Advertising, 0.75         0.99         0.75       0.73               0.75        0.35         2.70       1.41
Marketing,
Printing
and
Distribution
Expenses.
Collection    0.25        0.05         0.25       0.06               0.25           0.1          0.20      0.08
and
Registrars
Expenses
Bank              0.25         0.01        0.25        0.00*             0.25             0.02      0.10          0.02
Charges
and     other
Expenses
Selling           3.00         2.42        3.00         2.95             3.00             3.23      3.00          4.49
expenses
including
Commission
to Agents/
Brokers
Total             4.25         3.47        4.25         3.75            4.25        3.7       6.00         6.00
Target        10,000,000 5,005,386,890 10,000,000 6,202,947,654      10,000,000 5829833019 10,000,000 403,188,383.850
Amount /
Amount
Mobilised
(Rs.)
*less than 0.01%




                                                                                                                         10
1.3 Ann ual Recurring Expenses (As % of Average Daily Net Assets)
The fees and expenses of operating the schemes on an annual basis, expressed as a percentage of the amount of the
Schemes' average daily net assets, are estimated as follows:
 Expense Items / Scheme Names                BSL '95   BSLEF BSLTR’96 BSLIF      BSLCM BSLCM -IP BSLMI       BSLGSF

 Investment Management Fees                  1.25%     1.25%    1.25%    1.25%   0.50%     0.20%   1.10%     0.40%

 Registrar and Transfer Agent Fees           0.23%     0.23%    0.23%    0.17%   0.10%     0.08%   0.25%     0.18%

 Marketing & Selling Expenses & Commission 0.60%       0.60%    0.35%    0.70%   0.35%     0.20%   0.80%     0.55%

 Costs related to Investor Communication     0.10%     0.10%    0.25%    0.05%   0.01%     0.01%   0.05%     0.05%

 Audit Fees                                  0.03%     0.02%    0.03%    0.01%   0.01%     0.01%   0.01%     0.02%

 Trustee Fees                                0.01%     0.01%    0.01%    0.01%   0.01%     0.01%   0.01%     0.01%

 Miscellaneous Expenses                      0.29%     0.30%    0.39%    0.07%   0.03%     0.09%   0.04%     0.05%

 Total Expenses charged to the Scheme        2.50%     2.50%    2.50%    2.25%   2.25%     2.25%   2.25%     2.25%


 Expense Items / Scheme Names                                   BSLNM    BSLBI BSLBAS BSLSTF BSLFEF

 Investment Management Fees                                     1.25%    1.25%   1.25%     0.50%   1.25%

 Registrar and Transfer Agent Fees                              0.23%    0.23%   0.23%     0.10%   0.23%

 Marketing & Selling Expenses & Commission                      0.50%    0.60%   0.65%     0.36%   0.60%

 Costs related to Investor Communication                        0.35%    0.25%   0.10%     0.01%   0.10%

 Audit Fees                                                     0.02%    0.02%   0.02%     0.01%   0.03%

 Trustee Fees                                                   0.01%    0.01%   0.01%     0.01%   0.01%

 Miscellaneous Expenses                                         0.15%    0.15%   0.25%     0.02%   0.29%

 Total Expenses charged to the Scheme                           2.50%    2.50%   2.50%     2.25%   2.50%

Note : IP = Institutional Plan

The estimated expenses presented in the table above are on the basis of a corpus size of upto Rs. 100 crores. The
annual expense estimate shown above is provided in order to assist the Unitholder in understanding the expense
categories that are borne by the Schemes. Unitholders should note that the information provided are estimates made
on a best efforts basis and that the actual expenses charged to the Schemes and the expenses categories may vary.
In case of Birla Sun Life Cash Manager, while the total expenses / fees borne by the Scheme shall be limited to 1% of
its average daily net assets, the various limits under the expenditure sub-heads have been dispensed. Thus, if all
other fees / expenses excluding Investment Management Fee do not add upto 0.50%, then this fee may be
correspondingly increased such that the total expenses including Investment Management Fee remain at 1%. While
the regulations allow the Scheme to bear higher expenses, the Mutual Fund had agreed to incur fees and expenses at
a lower expense ratio until March 31, 1999. The expense ratio has been maintained at 1% of the average daily net
assets thereafter. However, as per the terms of the initial offer document, the expense ratio may be increased upto
levels that may be decided by the Board of Directors of the Trustee Company, but it will under no condition be
greater than the percentages stipulated by SEBI (MF) Regulations then in force.
In case of Institutional Plan under Birla Sun Life Cash Manager, 1% and 0.50% shall be correspondingly read as
0.60% and 0.20% respectively. In case of the BSLCM-IP the Trustee reserves the right to charge higher expense
ratios, but it will under no circumstances exceed the maximum percentages stipulated for this purpose by SEBI.
As per Regulation 52(6) of the SEBI (MF) Regulations, 1996, ongoing expenses on the first Rs.100 crores of the
Scheme's average weekly net assets will not exceed 2.50% per annum. On the next Rs.300 crores of the Scheme's
average weekly net assets ongoing expenses will not exceed 2.25% per annum. On the next Rs.300 crores of the
Scheme's average weekly net assets ongoing expenses will not exceed 2% and on the balance of the Scheme's

                                                                                                                  11
average weekly net assets ongoing expenses will not exceed 1.75%. Provided that recurring expenses shall be lesser
by at least 0.25% of the weekly average net assets for a scheme investing in bonds.
In accordance with SEBI (MF) Regulations, 1996 the investment management and advisory fee is included within the
ongoing expenses stated herein and charged to the Schemes and is subject to the following limits: On the first Rs.100
crores of the Scheme's average weekly net assets 1.25% and 1% of the excess amount over Rs.100 crores, where
net assets so calculated exceed Rs.100 crores. The ongoing fees and expenses of the Scheme will generally be
payable monthly in arrears. Ongoing fees and expenses incurred beyond the stipulated amounts allowed by regulation
will be borne by the Asset Management Company.


1.4 Condensed Financial Information- In respect of the Schemes launched during the last three fiscal
years for last 3 financial years

                                         Birla Bond Index Fund
HISTORICAL      PER Dividend      Growth Dividend       Growth                Dividend      Growth    Dividend         Growth
UNIT STATISTICS
                        April 1, 2006 to          2005-06                          2004-05                 2003-04
                       October 31, 2006
NAV at the beginning of 10.1598              11.0055   10.2146      10.6845   10.3765       10.7525     N.A             N.A
the year/period
Net Income per unit                    -0.14                     0.65                   -1.67                    1.2
Dividends P.U                   0.2346          -      0.3603           -      0.0903           -      0.3285            -
Transfer to reserves (if                 Nil                     0.02                   -0.98                   4.17
any)                      (Rs.
Crs.)
NAV at the end of the 10.3293                11.4478   10.1598      11.0055   10.2146       10.6845   10.3765          10.7525
year/period
Annualised       /     absolute       3.96%                 3.36%                   3.48%                     7.53%
return since inception till
end of the year/period
Returns on Benchmark                  3.78%                 3.39%                   3.43%                     6.42%
index since inception till
end of the year/period
Net Assets at end of the                0.77                     1.16                   6.01                    68.34
year/period       (Rs. Crs.)
Ratio       of      Recurring         0.85%                 0.85%                   0.83%                     0.84%
Expenses to net assets
NAV as on April 30 ,                                   10.2514      11.1051
2006
Annualised       /     absolute                             3.59%
returns since inception
upto April 30 , 2006
Returns on Benchmark                                        3.59%
index
Date of Allotment                                                   May 09, 2003.
Benchmark Index                                            Crisil Composite Bond Fund Index




                                                                                                                                 12
Birla Floating Rate Fund- Short Term Plan
HISTORICAL PER UNIT Retail                Growth      Retail Daily     Inst daily      Inst Growth   Inst
STATISTICS                    weekly                  dividend         dividend                      weekly
                              Dividend                                                               dividend
                                                      April 1, 2006 to October 31, 2006

NAV at the beginning of the       10.3870   11.5187       10.0015            10.0086      10.2402      10.0000
year/period
Net Income per unit                                                  0.47
Dividends P.U                     0.3768       -           0.3689            0.3753          -          0.2212
Transfer to reserves (if any)                                        Nil
(Rs. Crs.)
NAV at the end of the             10.3824   11.9534       10.0015            10.0086      10.6329      10.0154
year/period
Annualised / absolute return                                        5.37%
since inception till end of the
year/period
Returns on Benchmark index                                          4.70%
since inception till end of the
year/period
Net Assets at end of the                                            259.44
year/period    (Rs. Crs.)
Ratio of Recurring Expenses                                         0.63%
to net assets
Date of Allotment                                               June 05, 2003.
Benchmark Index                                            Crisil Liquid Fund Index




Birla Floating Rate Fund- Short Term Plam
HISTORICAL          PER Retail    Growth Retail Inst        Inst   Inst     Retail    Growth Retail    Growth
UNIT STATISTICS weekly                    Daily     daily   Growth weekly weekly             weekly
                        Dividend          dividend dividend        dividend Dividend         Dividend
                                                2005-06                          2004-05          2003-04

NAV at the beginning of 10.3776 10.9100  N.A        N.A        N.A        N.A     10.3454 10.3994  N.A       N.A
the year/period
Net Income per unit                           1.66                                       0.46           0.08
Dividends P.U                0.5667 -   0.4636     0.2606         -      0.2242 0.4483        -   0.0479       -
Transfer to reserves (if                      9.20                                      12.01           5.39
any)                    (Rs.
Crs.)
NAV at the end of the 10.3870 11.5187 10.0015 10.0086 10.2402 10.0000 10.3776 10.9100 10.3454 10.3994
year/period
Annualised / absolute                       15.19%                                      4.89%          3.99%
return since inception
till    end      of      the
year/period
Returns on Benchmark                        12.91%                                      4.14%          3.37%
index since inception till
end of the year/period
Net Assets at end of the                     314.08                                    773.89          147.54
year/period            (Rs.
Crs.)
Ratio      of     Recurring                  0.68%                                      0.74%          0.84%
Expenses to net assets
Date of Allotment                                              June 05, 2003.
Benchmark Index                                           Crisil Liquid Fund Index


                                                                                                                   13
                            Birla Floating Rate Fund- Short Term Plan
HISTORICAL PER UN IT Dividend Growth Dividend Growth Dividend Growth                                   Dividend Growth
STATISTICS
                        April 1, 2006 to         2005-06              2004-05                               2003-04
                       October 31, 2006
NAV at the beginning of the 10.4152       11.5531      10.3847    10.9545      10.3571       10.4297    N.A             N.A
year/period
Net Income per unit                   0.81                    0.85                    0.41                       0.14
Dividends P.U                  0.3429        -         0.5734         -        0.4468      -            0.0642            -
Transfer to reserves (if any)         Nil                    14.73                   10.49                       2.18
(Rs. Crs.)
NAV at the end of the 10.3714             11.9487      10.4152    11.5531      10.3847       10.9545   10.3571       10.4297
year/period
Annualised / absolute return        5.36%                    15.53%                  5.12%                    4.30%
since inception till end of
the year/period
Returns       on     Benchmark      4.70%                    12.91%                  4.14%                    3.37%
index since inception till
end of the year/period
Net Assets at end of the             82.32                   396.66                  425.49                   66.71
year/period      (Rs. Crs.)
Ratio of Recurring Expenses         0.65%                    0.79%                   0.84%                    0.84%
to net assets
Date of Allotment                                                     June 05, 2003.
Benchmark Index                                                  Crisil Liquid Fund Index


                                             Birla Cash Sweep Dividend
HISTORICAL       PER     UNIT            Dividend           Dividend                  Dividend              Dividend
STATISTICS
                                  April 1, 2006 to October       2005-06              2004-05                 2003-04
                                          31, 2006
NAV at the beginning of the              10.0489                 10.0502              10.0418                    N.A
year/period
Net Income per unit                        0.26                    0.60                   0.32                    0.20
Dividends P.U                             0.2667                  0.4063                 0.2955                  0.0650
Transfer to reserves (if any)              N.A                     0.01                   0.02                    0.05
(Rs. Crs.)
NAV at the end of the                    10.0505                 10.0489              10.0502                 10.0418
year/period
Annualised / absolute return              3.18%                   2.73%                  0.20%                   1.06%
since inception till end of the
year/period
Returns on Benchmark index                4.76%                   4.43%                  4.13%                   1.70%
since inception till end of the
year/period
Net Assets at end of the                   67.86                  35.86                  21.58                   13.67
year/period    (Rs. Crs.)
Ratio of Recurring Expenses               0.90%                   0.93%                  1.10%                   1.19%
to net assets
Date of Allotment                                                    October 20, 2003.
Benchmark Index                                                   Crisil Liquid Fund Index




                                                                                                                               14
                                   Brila Asset Allocation Fund-Aggressive Plan
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                April 1, 2006 to           2005-06                 2004-05            2003-04
                                October 31, 2006
NAV at the beginning of the 18.1223 18.1232            12.0247 12.0247 9.6857             9.6857  N.A          N.A
year/period
Net Income per unit                    1.98                  6.18                    2.65                -0.14
Dividends P.U                    Nil          -        Nil           -          Nil          -     Nil           -
Transfer to reserves (if any)           Nil                  2.52                    2.38                -0.71
(Rs. Crs.)
NAV at the end of the 19.5658 19.5658               18.1223 18.1232 12.0247 12.0247              9.6857       9.6857
year/period
Annualised / absolute return         28.40%                32.75%                   16.82%             -3.14%
since inception till end of the
year/period
Returns on Benchmark index           30.79%                34.69%                   8.52%              -9.37%
since inception till end of the
year/period
Net Assets at end of the               8.37                  8.61                    8.61               21.75
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           0.35%                 0.35%                   0.24%               9.43%
to net assets
Date of Allotment                                                 February 24, 2004.
Benchmark Index                                                       S&P Nifty


                                         Birla Asset Allocation Conservative Plan
HISTORICAL                 PER Dividend      Growth Dividend Growth Dividend Growth Dividend Growth
UNIT STATISTICS
                                  April 1, 2006 to            2005-06                  2004-05             2003-04
                                 October 31, 2006
NAV at the beginning of 13.0695              13.0695 11.0457 11.0457            9.9611        9.9610  N.A           N.A
the year/period
Net Income per unit                     0.85                    1.84                     0.86                -0.04
Dividends P.U                      Nil          -         Nil           -          Nil           -     Nil            -
Transfer to reserves (if any)            Nil                    1.06                     0.57                -0.08
(Rs. Crs.)
NAV at the end of the 13.7710                13.7710 13.0695 13.0695            11.0457 11.0457      9.9611        9.9610
year/period
Annualised / absolute return           12.66%                 13.61%                    8.75%              -0.39%
since inception till end of
the year/period
Returns      on     Benchmark          7.09%                   6.74%                    2.67%               0.10%
index since inception till
end of the year/period
Net Assets at end of the                7.27                    7.76                     7.98               19.03
year/period      (Rs. Crs.)
Ratio        of       Recurring        0.35%                   0.35%                    0.22%               3.03%
Expenses to net assets
Date of Allotment                                                    February 24, 2004.
Benchmark Index                                                  Crisil MIP Blended Index




                                                                                                                            15
                                   Birla Asset Allocation Fund- Moderate Plan
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                April 1, 2006 to          2005-06                  2004-05            2003-04
                                October 31, 2006
NAV at the beginning of the 15.9426 15.9427         11.6922 11.6922           9.8273      9.8273  N.A          N.A
year/period
Net Income per unit                    1.26                  4.54                    1.69                -0.08
Dividends P.U                    Nil          -        Nil            -         Nil          -     Nil           -
Transfer to reserves (if any)           Nil                  1.46                    1.22                -0.30
(Rs. Crs.)
NAV at the end of the 17.0625 17.0625               15.9426 15.9427 11.6922 11.6922              9.8273       9.8273
year/period
Annualised / absolute return         22.02%                24.89%                   14.09%             -1.73%
since inception till end of the
year/period
Returns on Benchmark index           19.35%                20.60%                   7.23%               2.15%
since inception till end of the
year/period
Net Assets at end of the               5.29                  6.25                    7.69               17.21
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           0.35%                 0.35%                   0.23%               6.08%
to net assets
Date of Allotment                                                 February 24, 2004.
Benchmark Index                                               Crisil Balanced Fund Index




                                              Birla MIP- Savings 5 Plan
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth                               Dividend Growth
STATISTICS
                                 April 1, 2006 to          2005-06               2004-05               2003-04
                                 October 31, 2006
NAV at the beginning of the 10.1341 10.9260           10.1184 10.3659        N.A         N.A        N.A         N.A
year/period
Net Income per unit                    0.39                  0.80                   0.84                  N.A
Dividends P.U                   0.3289        -       0.5800        -       0.2452         -        N.A         N.A
Transfer to reserves (if any)           Nil                  0.43                   0.26                  N.A
(Rs. Crs.)
NAV at the end of the 10.1698 11.3934                 10.1341 10.9260      10.1184      10.3659     N.A         N.A
year/period
Annualised / absolute return          5.48%                 4.88%                 3.66%                   N.A
since inception till end of the
year/period
Returns on Benchmark index            8.17%                 8.13%                 1.70%                   N.A
since inception till end of the
year/period
Net Assets at end of the               7.22                  9.16                  16.90                  N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           1.50%                 1.50%                 1.42%                   N.A
to net assets
Date of Allotment                                                 May 22, 2004.
Benchmark Index                                             CRISIL MIP Blended Index




                                                                                                                       16
                                                 Birla MIP- Wealth 25 Plan
HISTORICAL           PER Dividend          Growth Dividend         Growth      Dividend      Growth    Dividend Growth
UNIT STATISTICS
                                April 1, 2006 to             2005-06                  2004-05              2003-04
                               October 31, 2006
NAV at the beginning 11.2429               12.6479       10.3909      10.8666    N.A          N.A       N.A         N.A
of the year/period
Net Income per unit                   0.93                     1.42                     0.71                  N.A
Dividends P.U                 0.4406          -        0.8620                   0.4700                  N.A         N.A
Transfer to reserves (if               Nil                     5.13                     3.80                  N.A
any)                  (Rs.
Crs.)
NAV at the end of the                                  11.2429      12.6479     10.3909      10.8666    N.A         N.A
year/period                11.2823      13.3033
Annualised / absolute               12.39%                   13.48%                    8.67%                  N.A
return since inception
till    end      of    the
year/period
Returns on Benchmark                8.17%                     8.13%                    1.70%                  N.A
index since inception
till    end      of    the
year/period
Net Assets at end of the             95.19                    80.92                    121.59                 N.A
year/period          (Rs.
Crs.)
Ratio     of     Recurring          2.25%                     2.24%                    2.11%                  N.A
Expenses to net assets
Date of Allotment                                                    May 22, 2004.
Benchmark Index                                               CRISIL MIP Blended Index


                                   Birla Fixed Maturity Plan Quarterly Series 2
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                 April 1, 2006 to         2005-06                  2004-05       2003-04
                                October 31, 2006
NAV at the beginning of the 10.0183 10.8871           10.0046 10.3014 N.A                 N.A N.A       N.A
year/period
Net Income per unit                    0.46                 1.60                     0.41         N.A
Dividends P.U                   0.3608         -    0.5490           -        0.2947       -  N.A       N.A
Transfer to reserves (if any)           Nil                 0.68                     1.50         N.A
(Rs. Crs.)
NAV at the end of the 10.0960 11.3705              10.0183 10.8871 10.0046 10.3014            N.A       N.A
year/period
Annualised / absolute return          5.88%                8.87%                    1.20%         N.A
since inception till end of the
year/period
Returns on Benchmark index            5.08%                1.62%                    2.65%         N.A
since inception till end of the
year/period
Net Assets at end of the             190.28                242.84                  132.64         N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           0.13%                0.12%                    0.12%         N.A
to net assets
Date of Allotment                                                August 31, 2004.
Benchmark Index                                               Crisil Liquid Fund Index




                                                                                                                          17
                                    Birla Fixed Maturity Plan Annual Series 1
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                 April 1, 2006 to        2005-06                  2004-05       2003-04
                                October 31, 2006
NAV at the beginning of the 10.2734 10.8547          10.2842 10.2842 N.A                 N.A N.A       N.A
year/period
Net Income per unit                    0.25                2.12                     0.31         N.A
Dividends P.U                   0.6158         -    0.5621          -         Nil         -  N.A       N.A
Transfer to reserves (if any)           Nil                2.51                     2.24         N.A
(Rs. Crs.)
NAV at the end of the 10.0396 11.2607              10.2734 10.8547 10.2842 10.2842           N.A       N.A
year/period
Annualised / absolute return          5.78%               5.52%                    2.84%         N.A
since inception till end of the
year/period
Returns on Benchmark index            5.11%               4.70%                    2.49%         N.A
since inception till end of the
year/period
Net Assets at end of the              23.28               12.90                    80.88         N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           0.22%               0.22%                    0.20%         N.A
to net assets
Date of Allotment                                              September 20, 2004.
Benchmark Index                                              Crisil Liquid Fund Index


                                               Birla Dynamic Bond Fund
HISTORICAL PER UNIT Quaterly Growth Quaterly Growth Quaterly Growth Quaterly Growth
STATISTICS                      Dividend              Dividend              Dividend               Dividend
                                   April 1, 2006 to          2005-06                2004-05              2003-04
                                  October 31, 2006
NAV at the beginning of the 10.1262 10.7578            10.1617 10.2360          N.A         N.A       N.A       N.A
year/period
Net Income per unit                      0.34                  2.47                   1.08                 N.A
Dividends P.U                     0.3800        -       0.5484         -        0.08           -      N.A       N.A
Transfer to reserves (if any)             Nil                  0.18                   0.32                 N.A
(Rs. Crs.)
NAV at the end of the 10.1419 11.1855                  10.1262 10.7578 10.1617             10.2360    N.A       N.A
year/period
Annualised / absolute return           5.50%                  4.97%                  2.36%                 N.A
since inception till end of the
year/period
Returns on Benchmark index             4.03%                  3.38%                  1.71%                 N.A
since inception till end of the
year/period
Net Assets at end of the                 5.27                  4.51                  18.22                 N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses            0.75%                  0.75%                  0.78%                 N.A
to net assets
Date of Allotment                                                  September 27, 2004.
Benchmark Index                                           CRISIL Composite Bond Fund Index




                                                                                                                      18
                            Birla Fixed Maturity Plan Annual Series 3
HISTORICAL      PER Dividend Growth Dividend Growth Dividend Growth                              Dividend         Growth
UNIT STATISTICS
                         2006-07            2005-06            2004-05                                     2003-04

NAV at the beginning of 10.2093 10.9225        10.2280     10.2280        N.A           N.A          N.A             N.A
the year/period
Net Income per unit                  0.39            0.47                       0.23                        N.A
Dividends P.U                   Nil        -   0.6097         -           Nil            -           N.A             N.A
Transfer to reserves (if              Nil            4.09                       1.32                        N.A
any)                       (Rs.
Crs.)
NAV at the end of the 10.5757 11.3145          10.2093     10.9225       10.2280    10.2280          N.A             N.A
year/period
Annualised       /     absolute     6.46%           6.57%                       2.28%                       N.A
return since inception till
end of the year/period
Returns on Benchmark                5.24%           4.84%                       1.90%                       N.A
index since inception till
end of the year/period
Net Assets at end of the            100.08          96.61                       58.51                       N.A
year/period       (Rs. Crs.)
Ratio       of       Recurring      0.25%           0.25%                       0.24%                       N.A
Expenses to net assets
Date of Allotment                                             November 10, 2004.
Benchmark Index                                              Crisil Liquid Fund Index


                        Birla Fixed Term Debt Series 1 Plan 18 months
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                       April 1, 2006 to        2005-06              2004-05 2003-04
                      October 31, 2006
NAV at the beginning of the 10.3390 10.3390         N.A             N.A            N.A         N.A         N.A         N.A
year/period
Net Income per unit                   0.47                  0.34                         N.A                     N.A
Dividends P.U                   Nil        -         Nil             -             N.A         N.A         N.A         N.A
Transfer to reserves (if any)         Nil                   0.34                         N.A                     N.A
(Rs. Crs.)
NAV at the end of the 10.8536 10.8536              10.3390        10.3390          N.A         N.A         N.A         N.A
year/period
Annualised / absolute return         5.89%                 3.39%                         N.A                     N.A
since inception till end of the
year/period
Returns on Benchmark index           4.18%                 2.63%                         N.A                     N.A
since inception till end of the
year/period
Net Assets at end of the              8.46                  10.38                        N.A                     N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses         -0.05%                 0.60%                         N.A                     N.A
to net assets
Date of Allotment                                             May 27, 2005.
Benchmark Index                                      CRISIL Composite Bond Fund Index




                                                                                                                             19
                         Birla Fixed Term Debt Series 1 Plan 36 months
HISTORICAL      PER Dividend     Growth Dividend Growth Dividend Growth                         Dividend      Growth
UNIT STATISTICS
                       April 1, 2006 to        2005-06              2004-05                          2003-04
                      October 31, 2006
NAV at the beginning of 10.2333            10.2333    N.A             N.A     N.A         N.A     N.A          N.A
the year/period
Net Income per unit                   0.44                   0.24                   N.A                 N.A
Dividends P.U                   Nil           -       Nil              -      N.A         N.A     N.A          N.A
Transfer to reserves (if any)          Nil                   0.31                   N.A                 N.A
(Rs. Crs.)
NAV at the end of the 10.7686              10.7686   10.2333      10.2333     N.A         N.A     N.A          N.A
year/period
Annualised / absolute return         5.31%                  2.33%                   N.A                 N.A
since inception till end of
the year/period
Returns      on     Benchmark        4.18%                  2.63%                   N.A                 N.A
index since inception till
end of the year/period
Net Assets at end of the             13.45                   13.24                  N.A                 N.A
year/period      (Rs. Crs.)
Ratio        of       Recurring     -0.36%                  0.70%                   N.A                 N.A
Expenses to net assets
Date of Allotment                                               May 27, 2005.
Benchmark Index                                        CRISIL Composite Bond Fund Index



                        Birla Fixed Term Debt Series 2 Plan 18 months
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                       April 1, 2006 to        2005-06              2004-05 2003-04
                      October 31, 2006
NAV at the beginning of the 10.4040 10.4040            N.A            N.A     N.A         N.A     N.A          N.A
year/period
Net Income per unit                  0.46                      0.40                 N.A                 N.A
Dividends P.U                   Nil       -            Nil                    N.A         N.A     N.A          N.A
Transfer to reserves (if any)        Nil                       4.25                 N.A                 N.A
(Rs. Crs.)
NAV at the end of the 10.8121 10.8121                10.4040        10.4040   N.A         N.A     N.A          N.A
year/period
Annualised / absolute return        5.93%                    4.04%                  N.A                 N.A
since inception till end of the
year/period
Returns on Benchmark index          3.84%                    1.86%                  N.A                 N.A
since inception till end of the
year/period
Net Assets at end of the            42.70                    110.22                 N.A                 N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses         0.37%                    0.30%                  N.A                 N.A
to net assets
Date of Allotment                                                June 23, 2005.
Benchmark Index                                         CRISIL Composite Bond Fund Index




                                                                                                                       20
                                             Birla India GenNext Fund
HISTORICAL PER UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                April 1, 2006 to           2005-06                2004-05      2003-04
                                October 31, 2006
NAV at the beginning of the     14.05       14.05      N.A         N.A         N.A      N.A N.A       N.A
year/period
Net Income per unit                    3.04                  2.05                   N.A         N.A
Dividends P.U                    Nil          -          -           -         N.A      N.A N.A       N.A
Transfer to reserves (if any)           Nil                  43.90                  N.A         N.A
(Rs. Crs.)
NAV at the end of the 14.59                 14.59      14.05       14.05       N.A      N.A N.A       N.A
year/period
Annualised / absolute return         35.67%                40.50%                   N.A         N.A
since inception till end of the
year/period
Returns on Benchmark index           45.10%                44.10%                   N.A         N.A
since inception till end of the
year/period
Net Assets at end of the             204.57                 370.28                  N.A         N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses           2.34%                 2.31%                   N.A         N.A
to net assets
Date of Allotment                                                  August 05, 2005.
Benchmark Index                                                  S&P CNX NIFTY



                        Birla Fixed Term Debt Series 3 Plan 18 months
HISTORICAL PER UNIT Dividend Growth Divi dend Growth Dividend Growth Dividend Growth
STATISTICS
                       April 1, 2006 to        2005-06              2004-05 2003-04
                      October 31, 2006
NAV at the beginning of the 10.2164 10.2164       N.A           N.A   N.A         N.A    N.A         N.A
year/period
Net Income per unit                   0.57              0.22                N.A                N.A
Dividends P.U                   Nil        -      Nil            -    N.A         N.A    N.A         N.A
Transfer to reserves (if any)         Nil               0.07                N.A                N.A
(Rs. Crs.)
NAV at the end of the 10.7162 10.7162           10.2164     10.2164   N.A         N.A    N.A         N.A
year/period
Annualised / absolute return         5.72%              2.16%               N.A                N.A
since inception till end of the
year/period
Returns on Benchmark index           3.74%              1.32%               N.A                N.A
since inception till end of the
year/period
Net Assets at end of the              3.58              3.44                N.A                N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses         -0.33%              0.30%               N.A                N.A
to net assets
Date of Allotment                                         August 03, 2005.
Benchmark Index                                   CRISIL Composite Bond Fund Index




                                                                                                            21
                             Birla Fixed Term Debt Series 3 Plan 36 months
HISTORICAL         PER      UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                    April 1, 2006 to          2005-06           2004-05           2003-04
                                    October 31, 2006
NAV at the beginning of the 10.0585 10.0585            N.A       N.A       N.A     N.A          N.A         N.A
year/period
Net Income per unit                          0.49           0.06               N.A                    N.A
Dividends P.U                           Nil       -     Nil       -        N.A     N.A          N.A         N.A
Transfer to reserves (if any)                Nil            0.01               N.A                    N.A
(Rs. Crs.)
NAV at the end of the year/period     10.5677 10.5677 10.0585 10.0585 N.A          N.A          N.A         N.A
Annualised / absolute return since          4.54%          0.59%               N.A                    N.A
inception till end of the year/period
Returns on Benchmark index since            3.74%          1.32%               N.A                    N.A
inception till end of the year/period
Net Assets at end of the year/period         2.42           2.31               N.A                    N.A
(Rs. Crs.)
Ratio of Recurring Expenses to net         -0.44%          0.60%               N.A                    N.A
assets
Date of Allotment                                               August 03, 2005.
Benchmark Index                                       CRISIL Composite Bond Fund Index



                                         Birla TOP 100 Fund
HISTORICAL      PER    UNIT Dividend Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                               April 1, 2006 to             2005-06              2004-05              2003-04
                               October 31, 2006
NAV at the beginning of the 14.2947 14.2952            N.A            N.A     N.A         N.A    N.A          N.A
year/period
Net Income per unit                  1.53                    1.27                   N.A                N.A
Dividends P.U                   Nil        -            -              -      N.A         N.A    N.A          N.A
Transfer to reserves (if any)         Nil                    50.02                  N.A                N.A
(Rs. Crs.)
NAV at the end of the 15.1362 15.1362              14.2947          14.2952   N.A         N.A    N.A          N.A
year/period
Annualised / absolute return       50.19%                   42.94%                  N.A                N.A
since inception till end of the
year/period
Returns on Benchmark index         55.03%                   42.07%                  N.A                N.A
since inception till end of the
year/period
Net Assets at end of the            525.94                   604.64                 N.A                N.A
year/period    (Rs. Crs.)
Ratio of Recurring Expenses         2.24%                    2.25%                  N.A                N.A
to net assets
Date of Allotment                                                 October 24, 2005.
Benchmark Index                                                  S&P CNX NIFTY




                                                                                                                    22
                                           Birla Fixed Term Plan Series D
HISTORICAL       PER     UNIT Dividend      Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                  April 1, 2006 to            2005-06                 2004-05          2003-04
                                  October 31, 2006
NAV at the beginning of the       N.A       10.0847        N.A             N.A     N.A         N.A   N.A         N.A
year/period
Net Income per unit                      0.39                     0.08                   N.A               N.A
Dividends P.U                      Nil            -         Nil             -      N.A         N.A   N.A         N.A
Transfer to reserves (if any)             Nil                     0.55                   N.A               N.A
(Rs. Crs.)
NAV at the end of the             N.A           10.5712    N.A           10.0847   N.A         N.A   N.A         N.A
year/period
Annualised / absolute return             5.71%                    2.19%                  N.A               N.A
since inception till end of the
year/period
Returns on Benchmark index               5.62%                    5.18%                  N.A               N.A
since inception till end of the
year/period
Net Assets at end of the                 68.62                    65.67                  N.A               N.A
year/period    (Rs. Crs.)
Ratio of Recurring Expenses              0.25%                    0.25%                  N.A               N.A
to net assets
Date of Allotment                                                     November 09, 2005.
Benchmark Index                                                     CRISIL Liquid Fund Index



                                            Birla Fixed Term Plan Series E
HISTORICAL       PER     UNIT Dividend       Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                April 1, 2006 to              2005-06                 2004-05          2003-04
                                October 31, 2006
NAV at the beginning of the 10.0387 10.0387                N.A             N.A     N.A         N.A   N.A         N.A
year/period
Net Income per unit                   0.43                        0.04                   N.A               N.A
Dividends P.U                    Nil          -             Nil             -      N.A         N.A   N.A         N.A
Transfer to reserves (if any)          Nil                        0.51                   N.A               N.A
(Rs. Crs.)
NAV at the end of the 10.5169 10.5169                     10.0387        10.0387   N.A         N.A   N.A         N.A
year/period
Annualised / absolute return         5.17%                        2.19%                  N.A               N.A
since inception till end of the
year/period
Returns on Benchmark index           4.54%                        5.43%                  N.A               N.A
since inception till end of the
year/period
Net Assets at end of the             138.15                       131.86                 N.A               N.A
year/period    (Rs. Crs.)
Ratio of Recurring Expenses          0.20%                        0.20%                  N.A               N.A
to net assets
Date of Allotment                                                      January 25, 2006.
Benchmark Index                                                     CRISIL Liquid Fund Index




                                                                                                                       23
                                       Birla Fixed Term Plan Series F
HISTORICAL      PER    UNIT Dividend    Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                April 1, 2006 to       2005-06                 2004-05          2003-04
                                October 31, 2006
NAV at the beginning of the 10.0511 10.0511         N.A             N.A     N.A         N.A   N.A         N.A
year/period
Net Income per unit                   0.44                 0.04                   N.A               N.A
Dividends P.U                    Nil          -      Nil             -      N.A         N.A   N.A         N.A
Transfer to reserves (if any)          Nil                 0.56                   N.A               N.A
(Rs. Crs.)
NAV at the end of the 10.5242 10.5242              10.0511        10.0511   N.A         N.A   N.A         N.A
year/period
Annualised / absolute return         5.24%                 5.16%                  N.A               N.A
since inception till end of the
year/period
Returns on Benchmark index           4.16%                 5.87%                  N.A               N.A
since inception till end of the
year/period
Net Assets at end of the             126.10                126.21                 N.A               N.A
year/period    (Rs. Crs.)
Ratio of Recurring Expenses          0.15%                 0.15%                  N.A               N.A
to net assets
Date of Allotment                                               February 22, 2006.
Benchmark Index                                              CRISIL Liquid Fund Index



                                                Birla Infrastructure Fund
HISTORICAL                PER Dividend Growth Dividend Growth Dividend Growth Dividend Growth
UNIT STATISTICS
                                 April 1, 2006 to             2005-06                2004-05       2003-04
                                October 31, 2006
NAV at the beginning of 10.49               10.49        N.A          N.A        N.A        N.A N.A       N.A
the year/period
Net Income per unit                    0.29                     -0.18                 N.A           N.A
Dividends P.U                     Nil          -          Nil           -        N.A        N.A N.A       N.A
Transfer to reserves (if any)           Nil                    -10.73                 N.A           N.A
(Rs. Crs.)
NAV at the end of the 11.23                 11.23        10.49        10.49      N.A        N.A N.A       N.A
year/period
Annualised / absolute return          12.30%                   4.90%                  N.A           N.A
since inception till end of
the year/period
Returns      on     Benchmark         15.77%                   5.21%                  N.A           N.A
index since inception till
end of the year/period
Net Assets at end of the              533.53                   609.77                 N.A           N.A
year/period      (Rs. Crs.)
Ratio        of       Recurring       2.22%                    2.32%                  N.A           N.A
Expenses to net assets
Date of Allotment                                                     March 17, 2006.
Benchmark Index                                                     S&P CNX NIFTY




                                                                                                                24
                                             Birla Fixed Term Plan Series H
HISTORICAL PER UNIT Quaterly Growth Quaterly Growth Quaterly Growth Quaterly Growth
STATISTICS                      Dividend               Dividend             Dividend          Dividend
                                   April 1, 2006 to           2005-06               2004-05         2003-04
                                   October 31, 2006
NAV at the beginning of the 10.0075           10.0075     N.A         N.A       N.A       N.A    N.A       N.A
year/period
Net Income per unit                      0.53                   0.01                 N.A              N.A
Dividends P.U                      Nil            -        Nil         -        N.A       N.A    N.A       N.A
Transfer to reserves (if any)             Nil                   0.51                 N.A              N.A
(Rs. Crs.)
NAV at the end of the 10.5196                10.5196     10.0075 10.0075        N.A       N.A    N.A       N.A
year/period
Annualised / absolute return            5.20%                  0.08%                 N.A              N.A
since inception till end of the
year/period
Returns on Benchmark index              3.62%                  0.07%                 N.A              N.A
since inception till end of the
year/period
Net Assets at end of the               718.32                  684.53                N.A              N.A
year/period     (Rs. Crs.)
Ratio of Recurring Expenses             0.20%                  0.20%                 N.A              N.A
to net assets
Date of Allotment                                                    March 28, 2006.
Benchmark Index                                                 CRISIL Liquid Fund Index



                                            Birla Fixed Term Plan Series G
HISTORICAL       PER     UNIT Dividend       Growth Dividend Growth Dividend Growth Dividend Growth
STATISTICS
                                  April 1, 2006 to          2005-06                2004-05           2003-04
                                  October 31, 2006
NAV at the beginning of the       N.A       10.0051       N.A            N.A     N.A         N.A   N.A         N.A
year/period
Net Income per unit                      0.49                   0.01                   N.A               N.A
Dividends P.U                      Nil            -       Nil             -      N.A               N.A
Transfer to reserves (if any)             Nil                   0.41                   N.A               N.A
(Rs. Crs.)
NAV at the end of the             N.A           10.4978   N.A          10.0051   N.A         N.A   N.A         N.A
year/period
Annualised / absolute return             4.98%                  0.00%                  N.A               N.A
since inception till end of the
year/period
Returns on Benchmark index               3.56%                  0.00%                  N.A               N.A
since inception till end of the
year/period
Net Assets at end of the                 833.96                 794.83                 N.A               N.A
year/period    (Rs. Crs.)
Ratio of Recurring Expenses              0.23%                  0.00%                  N.A               N.A
to net assets
Date of Allotment                                                   March 31, 2006.
Benchmark Index                                                  CRISIL Liquid Fund Index




                                                                                                                     25
                              Birla Fixed Term Plan Series L
HISTORICAL PER UNIT STATISTICS                  Dividend                         Growth
                                                       April 1, 2006 to October 31, 2006

NAV at the beginning of the year/period               N.A                   N.A
Net Income per unit                                                               0.18
Dividends P.U                                                   Nil                                -
Transfer to reserves (if any)             (Rs. Crs.)                               Nil
NAV at the end of the year/period                            10.1837               10.1837
Annualised / absolute return since inception till end                          1.84%
of the year/period
Returns on Benchmark index since inception till end                            1.36%
of the year/period
Net Assets at end of the year/period      (Rs. Crs.)                              5.52
Ratio of Recurring Expenses to net assets                                        0.15%
Date of Allotment                                                           August 5, 2006
Benchmark Index                                                        Crisil Liquid Fund Index


                             Birla Long Term Advantage Fund.
HISTORICAL PER UNIT STATISTICS     Dividend             Growth
                                                    April 1, 2006 to October 31, 2006

NAV at the beginning of the year/period                N.A                                 N.A
Net Income per unit                                                          0.02
Dividends P.U                                          Nil                                  -
Transfer to reserves (if any)             (Rs.                               Nil
Crs.)
NAV at the end of the year/period                    10.4231                             10.4231
Annualised / absolute return since inception                                4.20%
till end of the year/period
Returns on Benchmark index since inception                                  4.84%
till end of the year/period
Net Assets at end of the year/period      (Rs.                              420.25
Crs.)
Ratio of Recurring Expenses to net assets                                   2.37%
Date of Allotment                                                      October 10, 2006.
Benchmark Index                                                          BSE Sensex

NOTES:
1. Annualised Returns for the Schemes have been calculated on Compounded Annualised basis for Growth Plan from
the Date of Allotment, EXCEPT, For Schemes not having Growth Plan, the same have been calculated for Dividend Plan
after considering dividend reinvestment.
2. For Schemes having period of operation less than a year from the date of allotment, Absolute Returns have been
calculated.
3.     The per Unit NAV on the date of allotment is taken as Rs. 10 for computation of returns

1.5   Borrowing by the Mutual Fund
As on date, the Mutual Fund does not have any borrowing.




                                                                                                               26
1.6 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended Investments made by the schemes of Birla Mutual Fund in Companies or their
subsidiaries that have invested more than 5% of the net assets of any scheme.


As on September 30, 2006
Company            Schemes         Investment made by         Aggregated for the     Outstanding as at
Name              invested by    schemes of Birla Sun Life      period under        September 30, 2006
                 the Company        Mutual fund in the        Regulation 25(11)       At Market / Fair
                                   company /subsidiary            As cost                 Value
                                                              (Rupees in Lakhs)        (Rupees in Lakhs)

Bank of Baroda BBP              ADVG                         103.06                                 NIL
                                BBP                          137.14                                 NIL
                                BSLFEF                       68.70                                  NIL
                                BTO P100                     114.49                                 NIL
                                CASH                         506.88                                 NIL
                                EXCEL                        1,520.46
                                                                                   1,899.96
                                GENNEXT                      114.49                                 NIL
                                IAF                          137.41                                 NIL
                                TAX99                        22.91                                  NIL

Bank Of India   BSLCM           ADVG                         786.28                                 NIL
                                BBAL                         533.74                                 NIL
                                BBP                          4,515.75                               NIL
                                BDYP                         2,242.76                               NIL
                                BINFRA                       826.06
                                                                                   972.90
                                BSLR96                       106.26                                 NIL
                                EXCEL                        603.27                                 NIL
                                GENNEXT                      175.98                                 NIL
                                IAF                          1,264.78                               NIL
                                MIDCAP                       115.43                                 NIL
                                MIP                          201.24                                 NIL
                                MIP25                        402.48                                 NIL
                                MIP5                         4.66                                   NIL
                                TAX98                        38.44                                  NIL
                                TAX99                        412.66                                 NIL

Bharti Airtel   BBP             ADVG                         2,903.86
Ltd.                                                                               3,063.40
                                BBAL                         2,301.62
                                                                                   528.49
                                BINFRA                       2,429.80
                                                                                   2,119.20
                                BLTA                         515.72
                                                                                   539.18
                                BSL95F                       179.13
                                                                                   532.23
                                BSLBUYI                      1,217.19
                                                                                   820.49
                                BSLEQTY                      1,088.16
                                                                                   537.32
                                BSLFEF                       386.74
                                                                                   231.38
                                BSLMI                        202.80
                                                                                   140.66
                                BSLNMF                       1,187.27
                                                                                                           27
                                                 1,091.42
                            BSLR96       13.78              Nil
                            BTOP100   3,521.38
                                                 2,883.43
                            EXCEL     2,804.67
                                                 5,206.98
                            GENNEXT   4,142.09
                                                 1,172.13
                            IAF       2,292.14
                                                 3,914.90
                            MIDCAP    262.20                Nil
                            MIP       879.98
                                                 210.98
                            MIP25     675.19
                                                 90.39
                            MIP5      8.88
                                                 3.38
                            MNC       1,608.74
                                                 1,172.13
                            NIFTY     104.23
                                                 13.91
                            TAX98     46.06                 Nil
                            TAX99     220.92                Nil

Corporation       BBP       CASH      2,483.13              Nil
Bank

Geometric         CASHDIV   BSLFEF    20.65                 Nil
Software
Solution Ltd.
                            BSLNMF    258.82
                                                 278.09
                            EXCEL     45.86                 Nil
                            MIDCAP    614.29                Nil
                            TAX99     23.31                 Nil

Hindalco          BBP       BBP       1,568.32              Nil
Industries Ltd.
                  BSLSTF    BINFRA    1,606.45
                                                 271.50
                  CASH      BSLBIND   305.31
                                                 317.00
                            BSLCM     1,003.51              Nil
                            BSLEQTY   2,193.98
                                                 393.37
                            BSLFEF    204.32                Nil
                            BSLR96    44.68                 Nil
                            CASH      2,008.57              Nil
                            FTD3P36   24.95
                                                 24.35
                            FTPC      521.36                Nil
                            MIP       995.21
                                                 974.10
                            MIP25     497.61
                                                 462.70
                            NIFTY     24.04
                                                 3.11
                            PLUS      1,184.16
                                                 1,395.17
                            TAX99     296.67                Nil


                                                                  28
                          1
Indian                        PLUS      132.35                Nil
Aluminium Co.
     1
Ltd.
( Subsidiary of
Hindalco
Industries Ltd.)

HCL                PLUS       ADVG      1,474.11              Nil
Technologies
Ltd.
                              BDYP      8,361.85
                                                   1,799.74
                              BSL95F    164.56                Nil
                              BSLEQTY   670.93                Nil
                              BSLFEF    148.96                Nil
                              BSLMI     42.07                 Nil
                              BSLNMF    1,536.95
                                                   451.41
                              BSLR96    112.24                Nil
                              BTOP100   2,394.32              Nil
                              IAF       890.11                Nil
                              MIP25     45.96                 Nil
                              NIFTY     20.57
                                                   2.79
                              TAX98                           Nil
                                        28.45
                              TAX99                           Nil
                                        331.33

I T C Ltd.         BBP        ADVG
                                        2,375.09   1,986.09
                   BFS        BBAL
                                        702.17     281.48
                              BLTA
                                        184.79     187.65
                              BSL95F
                                        247.09     281.48
                              BSLBUYI
                                        1,236.17   469.13
                              BSLEQTY
                                        534.09     848.18
                              BSLFEF
                                        472.09     281.66
                              BSLR96                          Nil
                                        37.85
                              BTOP100
                                        1,945.93   1,876.50
                              EXCEL
                                        1,356.30   2,040.13
                              GENNEXT
                                        3,171.14   656.78
                              IAF
                                        2,402.87   2,319.17
                              MIDCAP                          Nil
                                        404.81
                              MIP
                                        254.25     93.83
                              MIP25
                                        100.54     75.06
                              MNC
                                        1,152.79   938.25

                                                                    29
                       NIFTY
                                 65.39        11.02
                       TAX99                              Nil
                                 271.66

ICICI Bank Ltd. CASH   ADVG
                                 1,615.74     1,306.79
                       BBAL                               Nil
                                 2,688.26
                       BBP                                Nil
                                 16,062.66
                       BDB
                                 1,301.68     239.60
                       BDYP                               Nil
                                 2,011.00
                       BFL
                                 13,605.51    1,502.32
                       BFS
                                 21,086.25    3,780.65
                       BFTPQS2                            Nil
                                 9,586.52
                       BINFRA                             Nil
                                 1,439.54
                       BLTA
                                 245.30       279.62
                       BSL95F                             Nil
                                 92.65
                       BSLBIND
                                 638.54       363.57
                       BSLCM                              Nil
                                 5,830.41
                       BSLEQTY                            Nil
                                 755.87
                       BSLFEF
                                 1,033.88     349.53
                       BSLMI                              Nil
                                 127.99
                       BSLR96
                                 124.73       139.81
                       BSLSTF
                                 3,027.11     359.40
                       BTOP100
                                 1,234.81     1,258.29
                       CASH
                                 315,381.91   65,031.07
                       CASHDIV                            Nil
                                 2,072.77
                       EXCEL
                                 1,478.24     1,816.01
                       FMPAS2                             Nil
                                 329.49
                       FMPAS3                             Nil
                                 212.83
                       FMPQS2                             Nil
                                 5,793.07
                       FMPQS3                             Nil
                                 2,868.15
                       FMPY14                             Nil
                                 341.22
                       FMPYS1
                                 1,341.83     959.90
                       FTPA                               Nil
                                                                30
                                     52,875.70
                           FTPC                              Nil
                                     2,459.25
                           FTPE
                                     844.57      856.64
                           FTPF
                                     945.44      958.41
                           FTPG
                                     15,985.12   9,505.25
                           FTPH
                                     51,859.91   45,458.26
                           GENNEXT
                                     6,004.13    699.05
                           IAF
                                     2,555.44    1,607.82
                           MIDCAP                            Nil
                                     57.32
                           MIP                               Nil
                                     3,134.73
                           MIP25                             Nil
                                     531.32
                           MIP5
                                     586.17      100.00
                           NIFTY
                                     95.98       9.77
                           PLUS
                                     10,809.16   1,706.70
                           TAX98
                                     34.90       34.95
                           TAX99
                                     212.29      174.76

                       2
ICICI Securities           ADVG                              Nil
     2
Ltd.                                 500.00
(Subsidiary of             BBP                               Nil
ICICI Bank                           500.00
Ltd.)
                           BFL                               Nil
                                     2,400.07
                           BFS                               Nil
                                     9,901.16
                           BINFRA                            Nil
                                     500.00
                           BSLFEF                            Nil
                                     500.00
                           CASH
                                     60,973.58   500.00
                           CASHDIV                           Nil
                                     500.00
                           FMPQS3                            Nil
                                     902.59
                           FMPYS1                            Nil
                                     100.29
                           FTD2P18                           Nil
                                     1,500.00

Indian         BSLCM       ADVG                              Nil
Petrochemicals                       1,921.67
Corporation
Ltd.
                           BBAL                              Nil
                                     545.99
                                                                   31
                     BSL95F                        Nil
                               272.44
                     BSLBIND
                               491.09     276.71
                     BSLEQTY                       Nil
                               1,140.00
                     BSLFEF                        Nil
                               258.38
                     BSLMI                         Nil
                               102.39
                     BSLR96                        Nil
                               120.27
                     BTOP100                       Nil
                               3,062.62
                     EXCEL                         Nil
                               1,286.05
                     IAF                           Nil
                               2,144.93
                     MIP                           Nil
                               152.60
                     MIP25                         Nil
                               104.10
                     NIFTY
                               7.75       1.19
                     TAX98                         Nil
                               30.96
                     TAX99                         Nil
                               342.36

Jagran         BBP   CASH
Prakashan Ltd.                 983.33     989.56


Jammu &        BBP   BBAL                          Nil
Kashmir Bank                   2,889.54
Ltd.
                     BBP                           Nil
                               2,407.26
                     BDYP                          Nil
                               675.33
                     BFL                           Nil
                               2,361.42
                     BFS                           Nil
                               7,344.89
                     BSL95F                        Nil
                               582.38
                     BSLBIND                       Nil
                               2,983.27
                     BSLBUYI                       Nil
                               1,571.66
                     BSLCM                         Nil
                               2,705.80
                     BSLEQTY                       Nil
                               1,374.27
                     BSLFEF                        Nil
                               1,466.83
                     BSLIF                         Nil
                               288.32
                     BSLMI                         Nil
                               356.00
                     BSLR96                        Nil
                               10.49
                                                         32
                        BSLSTF                           Nil
                                  265.26
                        BTOP100                          Nil
                                  2,447.35
                        CASH
                                  68,033.31   6,887.32
                        CASHDIV                          Nil
                                  1,189.87
                        FMPQS2                           Nil
                                  23,924.63
                        FTPA                             Nil
                                  718.05
                        FTPC                             Nil
                                  24.64
                        GENNEXT                          Nil
                                  2,729.56
                        MIDCAP
                                  1,159.23    224.08
                        MIP                              Nil
                                  812.29
                        MIP25                            Nil
                                  668.94
                        MNC                              Nil
                                  1,565.43
                        PLUS                             Nil
                                  4,042.13

Larsen &      BTOP100   ADVG
Toubro Ltd.                       1,657.38    883.50
              PLUS      BBAL                             Nil
                                  565.49
              BSLBIND   BFL                              Nil
                                  4,000.00
                        BFS                              Nil
                                  15,500.00
                        BINFRA
                                  4,266.30    345.07
                        BLTA
                                  123.95      127.31
                        BSL95F                           Nil
                                  379.04
                        BSLBIND
                                  261.76      267.34
                        BSLEQTY                          Nil
                                  1,744.86
                        BSLFEF
                                  648.81      157.60
                        BSLMI                            Nil
                                  85.19
                        BSLR96                           Nil
                                  38.62
                        BTOP100
                                  2,781.73    1,018.44
                        CASH                             Nil
                                  9,000.00
                        EXCEL
                                  1,094.41    1,527.66
                        IAF
                                  2,061.26    1,145.75
                        MIP                              Nil
                                  183.27
                        MIP25                            Nil
                                                               33
                                       51.94
                             NIFTY
                                       30.12       5.57

                         3
L&T                          CASH                             Nil
Infrastructure                         4,001.54
Devp Projects
Ltd.3
(Subsidiary of               FTD1P36                          Nil
Larsen &                               205.34
Toubro Ltd.)
                             MIP                              Nil
                                       1,537.82
                             PLUS                             Nil
                                       1,519.19

                         3
L&T Finance                  BSLCM                            Nil
Ltd. 3                                 900.00
(Subsidiary of               BTOP100                          Nil
Larsen &                               1,982.81
Toubro Ltd.)
                             CASH                             Nil
                                       31,445.06
                             FTPC                             Nil
                                       2,500.00

                         3
India                        BSL95F                           Nil
Infrastructure                         63.16
Developers Ltd.
3

(Subsidiary of               BSLIF
Larsen &                               465.93      254.41
Toubro Ltd.)
                             BSLMI
                                       825.39      457.94
                             FTD3P18
                                       51.44       30.53
                             FTD3P36
                                       34.07       20.35

Marico            CASHDIV    BSLBUYI
Industries Ltd.                        510.39      520.00
                             MIDCAP
                                       217.81      260.00

Reliance          CASH       ADVG
Industries Ltd.                        3,223.63    1,194.47
                             BBAL
                                       1,142.39    562.10
                             BBP
                                       5,490.36    438.59
                             BDYP                             Nil
                                       3,646.52
                             BFL                              Nil
                                       4,581.96
                             BINFRA
                                       4,006.10    1,229.60
                             BLTA
                                       223.18      234.21
                             BSL95F
                                       663.29      585.53
                             BSLBIND
                                                                    34
                                 1,340.28   585.53
                       BSLCM                           Nil
                                 502.79
                       BSLEQTY
                                 2,376.59   644.08
                       BSLFEF
                                 1,622.67   292.76
                       BSLMI                           Nil
                                 695.16
                       BSLR96                          Nil
                                 129.26
                       BTOP100
                                 3,866.21   2,693.42
                       CASH                            Nil
                                 1,218.96
                       EXCEL
                                 3,872.63   2,604.70
                       FTD3P18
                                 51.88      50.24
                       FTPC                            Nil
                                 5,626.32
                       IAF
                                 3,571.48   1,440.39
                       MIDCAP                          Nil
                                 208.92
                       MIP
                                 2,986.43   236.55
                       MIP25
                                 646.72     93.68
                       MIP5                            Nil
                                 4.97
                       NIFTY
                                 157.61     25.53
                       PLUS
                                 1,502.70   1,315.78
                       TAX98                           Nil
                                 57.85
                       TAX99                           Nil
                                 750.15

                   4
Reliance               ADVG                            Nil
Petroleum Ltd.                   129.61
4

(Subsidiary of         BBAL                            Nil
Reliance                         31.80
Industries Ltd.)
                       BINFRA                          Nil
                                 148.70
                       BSL95F                          Nil
                                 29.60
                       BSLBIND                         Nil
                                 34.54
                       BSLEQTY                         Nil
                                 97.93
                       BSLFEF                          Nil
                                 13.34
                       BSLMI                           Nil
                                 32.85
                       BSLR96                          Nil
                                 5.36
                       BTOP100                         Nil
                                 142.10
                                                             35
                        EXCEL                             Nil
                                  174.45
                        IAF                               Nil
                                  159.97
                        MIDCAP                            Nil
                                  39.83
                        MIP                               Nil
                                  52.96
                        MIP25                             Nil
                                  18.98
                        MIP5                              Nil
                                  1.06
                        TAX98                             Nil
                                  1.79
                        TAX99                             Nil
                                  19.88

State Bank of   BSLCM   BFS
Hyderabad                         1,889.93    1,900.34
                        CASH
                                  26,419.63   17,102.34

Sterlite        BBP     BFL                               Nil
Industries                        11,400.00
(India) Ltd.
                        BFS                               Nil
                                  11,000.00
                        BINFRA                            Nil
                                  1,328.37
                        BSL95F                            Nil
                                  1,500.00
                        BSLBIND                           Nil
                                  238.16
                        BSLEQTY                           Nil
                                  1,745.02
                        BSLIF                             Nil
                                  500.00
                        BSLMI                             Nil
                                  2,500.00
                        BSLNMF                            Nil
                                  500.00
                        BSLR96                            Nil
                                  59.50
                        CASH                              Nil
                                  38,500.00
                        CASHDIV                           Nil
                                  1,000.00
                        MIDCAP                            Nil
                                  339.38
                        TAX98                             Nil
                                  25.50
                        TAX99                             Nil
                                  255.02

Tata            BBP     ADVG
Consultancy                       2,302.99    1,152.10
Services Ltd.
                        BBAL                              Nil
                                  785.13
                        BLTA
                                  198.53      204.32
                        BSL95F                            Nil
                                                                36
                                      352.35
                            BSLEQTY
                                      2,181.45   653.82
                            BSLFEF
                                      537.98     220.44
                            BSLMI                           Nil
                                      95.44
                            BSLNMF
                                      1,676.31   739.64
                            BTOP100
                                      2,685.15   1,441.80
                            EXCEL
                                      1,825.02   2,185.32
                            IAF
                                      2,209.56   1,471.10
                            ITF
                                      766.16     568.28
                            MIDCAP                          Nil
                                      62.70
                            MIP                             Nil
                                      119.31
                            MIP25                           Nil
                                      155.48
                            NIFTY
                                      80.43      15.64
                            TAX98                           Nil
                                      14.31
                            TAX99                           Nil
                                      212.70

           5            5
CMC Ltd.                    ADVG                            Nil
                                      1,180.45
                            BBAL                            Nil
                                      100.07
                            BFL                             Nil
                                      493.35
                            BFS                             Nil
                                      494.82
                            BFTPQS2                         Nil
                                      489.39
                            BSLCM                           Nil
                                      998.52
                            BSLMI                           Nil
                                      495.49
                            BTOP100                         Nil
                                      995.40
                            CASH
                                      4,440.15   989.54
                            EXCEL                           Nil
                                      60.39
                            IAF                             Nil
                                      57.57
                            ITF                             Nil
                                      311.10
                            MIDCAP                          Nil
                                      139.48
                            MIP                             Nil
                                      82.50
                            TAX98                           Nil
                                      2.88

Union Bank of   BSLCM       ADVG                            Nil
                                                                  37
India                          1,192.09
                     BBAL                              Nil
                               56.62
                     BBP                               Nil
                               984.56
                     BDYP
                               4,237.35    2,345.75
                     BSLBIND
                               335.58      272.70
                     BSLCM
                               3,358.45    962.71
                     BSLEQTY                           Nil
                               68.83
                     BSLFEF                            Nil
                               166.91
                     BSLR96                            Nil
                               91.61
                     BSLSTF                            Nil
                               1,532.27
                     CASH
                               36,313.74   14,037.16
                     EXCEL                             Nil
                               279.97
                     FTD2P18                           Nil
                               500.00
                     GENNEXT                           Nil
                               1,311.58
                     IAF                               Nil
                               531.79
                     MIDCAP
                               475.43      275.43
                     MIP                               Nil
                               29.86
                     MIP25                             Nil
                               99.43
                     MIP5                              Nil
                               3.66
                     TAX98
                               55.07       25.77
                     TAX99                             Nil
                               522.68

Videsh Sanchar BBP   BINFRA                            Nil
Nigam Ltd.                     820.31
                     NIFTY
                               12.20       1.77

Wipro Ltd.    BBP    BSLEQTY                           Nil
                               1,735.00
                     BSLFEF
                               367.00      164.29
                     BSLNMF
                               711.34      479.77
                     BSLR96                            Nil
                               103.97
                     EXCEL                             Nil
                               430.91
                     IAF                               Nil
                               416.62
                     ITF
                               1,231.91    420.08
                     MIDCAP                            Nil
                                                             38
                                                                     127.67
                                       MIP                                                                      Nil
                                                                     127.36
                                       MIP25                                                                    Nil
                                                                     97.34
                                       NIFTY
                                                                     129.38                 11.77
                                       TAX98                                                                    Nil
                                                                     15.32
                                       TAX99                                                                    Nil
                                                                     400.59


Notes:
1
    Indian Aluminium Company Ltd. is a subsidiary of Hindalco Industries Ltd.

2
    ICICI Securities Ltd. is a subsidiary of ICICI Bank.

3                                            ,               .
  L & T Infrastructure Devp. Projects Ltd. L&T Finance Ltd and India Infrastructure Developers Ltd.
Projects Ltd.are subsidiaries of Larsen & Toubro Ltd. Birla Sun Life Mutual Fund schemes have invested
in the said securities as shown above.
4
    Reliance Petroleum Ltd. is a subsidiary of Reliance Industries Ltd.

5
    CMC Ltd is a subsidiary of Tata Consultancy Services Ltd.

Scheme Name                                  Abbreviation   Scheme Name                                Abbreviatio
                                                                                                       n
Birla Advantage Fund                         ADVG           Birla Balance                              BBAL
Birla Dividend Yield Plus                    BDYP           Birla Sun Life 95 Fund                     BSL95F
Birla Infrastucture Fund                     BINFRA         Birla Floating Rate - Long Term            BFL
Birla Sun Life Basic Industries Fund         BSLBIND        Birla Floating Rate - Short Term           BFS
Birla Sun Life Buy India Fund                BSLBUYI        Birla Cash Plus                             CASH
Birla Sun Life Equity Fund                   BSLEQTY        Birla Cash Plus - Sweep Plan (div)         CASHDIV
Birla Sun Life Frontline Equity Fund         BSLFEF         Birla Sun Life Cash Manager                BSLCM
Birla Sun Life New Millenium Fund            BSLNMF         Birla FMP Quarterly Series 1               FMPQS1
Birla Sun Life Relief 96                     BSLR96         Birla FMP Quarterly Series 2               FMPQS2
Birla Top 100                                BTOP100        Birla FMP Quarterly Series 3               FMPQS3
Birla Gennext Fund                           GENNEXT        Birla FMP Yearly Series 1                  FMPYS1
India Opportunities Fund                     ITF            Birla FMP Annual Series 2                  FMPAS2
Birla Midcap Fund                            MIDCAP         Birla FMP Annual Series 3                  FMPAS3
Birla MNC Fund                               MNC            Birla FMP Yearly Series 14                 FMPY14
Birla Index Fund                             NIFTY          Birla Fixed Term Plan A                    FTPA
Birla Tax Plan 98                            TAX98          Birla Fixed Term Plan C                     FTPC
Birla Equity Plan                            TAX99          Birla Fixed Term Plan D                     FTPD
Birla Bond Plus                              BBP            Birla Fixed Term Plan E                    FTPE
Birla Dynamic Bond Fund                      BDB            Birla Fixed Term Plan F                    FTPF
Birla Sun Life Income Fund                   BSLIF          Birla Fixed Term Plan G                    FTPG
Birla Sun Life Short Te rm Fund              BSLSTF         Birla Fixed Term Plan H                     FTPH
Birla Bond Index Fund                        BBIF           Birla Fixed Term Debt SR 1 18 month        FTD1P18
Birla Income Plus                            PLUS           Birla Fixed Term Debt SR 1 36 month        FTD1P36
Birla MIP                                    MIP            Birla Fixed Term Debt SR 2 18 month        FTD2P18
Birla MIP Wealth 25 Plan                     MIP25          Birla Fixed Term Debt SR 3 18 month        FTD3P18
Birla MIP Saving 5 Plan                      MIP5           Birla Fixed Term Debt SR 3 36 month        FTD3P36
Birla Sun Life Monthly Income Plan           BSLMI          Birla Fixed Terp Plan Quarterly Series 1   BFTPQS1
India Excel (Offshore) Fund                  EXCEL          Birla Fixed Terp Plan Quarterly Series 2   BFTPQS2
India Advantage (Offshore) Fund              IAF            Birla Fixed Terp Plan Quarterly Series 3   BFTPQS3




                                                                                                                      39
2.   CONSTITUTION OF THE MUTUAL FUND
BACKGROUND OF THE ASSET MANAGEMENT COMPANY’S PROMOTERS

The Aditya Birla Group

The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the
Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion
conglomerate, with a market capitalisation of US$ 14 billion, it is anchored by an extraordinary force of 72,000
employees belonging to over 20 different nationalities. Over 30 per cent of its revenues flow from its operations
across the world. The Group's products and services offer distinctive customer solutions. Its 72, state-of-the-art
manufacturing units and sectoral services, span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada,
Australia and China.
A premium conglomerate, the Aditya Birla Group is a dominant player in all the sectors in which it operates, such as
viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals,
fertilisers, sponge iron, insulators and financial services.

Sun Life Financial Inc.
Sun Life Financial is a leading international financial services organization providing a diverse range of wealth
accumulation and protection products and services to individuals and corporate customers. Chartered in 1865, Sun
Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States,
the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

As of December 31, 2005, the Sun Life Financial Inc. group of companies had total assets under management of CDN
$ 387 billion.

Fund Organisation And Management
Birla Mutual Fund has been constituted as a trust under the provisions of the Indian Trusts Act, 1882 (2 of 1882) and
registered with SEBI bearing registration no. MF/020/94/8 dated December 23, 1994. The objective of the Mutual
Fund is to offer to the public and other eligible investors units in one or more schemes of the Mutual Fund for making
group or collective investments p  rimarily in Indian Securities in accordance with and as permitted under the directions
and guidelines issued from time to time by SEBI. The Corporate Office of the Mutual Fund is at Ahura Centre, Tower
A, 2nd Floor, 96 A/D Mahakali Caves Road, Andheri (East), Mumbai - 400 093.

The Sponsors
The sponsors of Birla Mutual Fund are Birla Global Finance Ltd. (since merged with Aditya Birla Nuvo Limited) and Sun Life (India)
AMC Investments Inc. (a company governed by the laws of Canada), which is a wholly-owned subsidiary of Sun Life Financial Inc.
Sun Life (India) AMC Investments Inc. is a deemed sponsor under the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996.
Financial Summary of Birla Global Finance Ltd. (Since merged with Aditya Birla Nuvo Ltd.)
                                                        In Indian Rupees (Lakhs)
Particulars                               Year ended           Year ended 31.03.2005        Year ended 31.03.2004
                                          31.03.2006


Total Income                                     6515                              7211                     5681
Profit after tax                                 1909                              3097                       312
Equity Capital                                   2575                              2575                     1575
Reserves                                         8106                              6197                     4316
Net Worth                                       10681                              8772                     5891
Earning per share                                7.41                              14.26                     0.44




                                                                                                                              40
Financial Summary of Sun Life Financial Inc.
                                                                             Figures in Millions of Canadian Dollars
Particulars                                        Year ended                       Year ended       Year ended 31.12.2003
                                                   31.12.2005                       31.12.2004
Total Income (Revenues)                                  21,918                         21, 730                        22,056
Profit after tax (Shareholders net                        1,843                          1,680                         1,307
income)
Equity Capital (Share Capital &                           7,239                          7,308                         7,365
Contributed Surplus)
Reserves (Retained Earnings)                              9,095                          8,204                         7,288
Net Worth (Total Equity)                                 15,546                         14,415                         13,980
Earning per share                                           3.14                          2.81                           2.15

The Trustee Company
Birla Sun Life Trustee Company Private Ltd. (BSLTC) is a company incorporated with limited liability under the
                                                                                                    s
Companies Act, 1956. Under the Trust Deed dated December 16, 1994 BSLTC has been appointed a the Trustee for
Birla Mutual Fund with Birla Global Finance Ltd (since merged with Aditya Birla Nuvo Ltd.) as the Settlor. BSLTC is a
joint venture between the Aditya Birla Group and the Sun Life Financial Services of Canada Inc. (through its wholly-
owned subsidiary Sun Life (India) AMC Investments Inc.). Both the joint venture partners hold 50% of the equity
capital of BSLTC. Summary of substantive provisions of the trust deed, which may be of material interest to the
Unitholders.

General Power Of The Trustee

It is hereby declared that the Trustee shall have and shall be deemed to have the legal ownership of the Trust Fund
and that the general superintendence, direction and management of the affairs of the Trust and all powers,
authorities and discretions appurtenant to or incidental to the purpose of the trust shall absolutely vest in the Trustee,
subject nevertheless to the provisions of the Trust Deed. Subject to the aforesaid, the Trustee shall as regards all
trusts, powers, authorities and discretions hereby vested in them, have absolute and uncontrolled discretion as to the
exercise thereof in relation to the mode and time for exercise thereof.
Trustee To Act Efficiently

The Trustee shall manage affairs of the Trust with utmost economy consistent with the maintenance of efficiency of
administration and act in interests of the Unitholders.
Responsibilities Of The Trustees And Its Directors

I. The Trustee and its Directors shall maintain arms’ length relationship with other companies, or institutions or
financial intermediaries or any body corporate with which the Trustee may be associated.

II. The Directors of theTrustee shall not participate in any decision-making process/resolutions of its Board Meetings
for any investment in which they may be interested.
Amendments to the Trust Deed shall not be carried out without prior approval of SEBI and Unitholders approval would
be obtained where it affects the interest of Unitholder.
The Directors of BSLTC are:
Mr. B.N. Puranmalka *                          Other Directorships:
Aditya Birla Centre,                           Birla Sun Life Distribution Co. Ltd.
S.K. Ahire Marg,                               India Advantage Fund Ltd., (Mauritius)
Mumbai 400 022                                 Birla Sun Life Insurance Co. Ltd.
Corporate Executive                            Birla Global Asset Finance Co. Ltd.
                                               Birla Insurance Advisory Services Ltd.
                                               Bina Power Supply Co. Ltd.




                                                                                                                                41
Mr. Gurcharan Das             Gurcharan Das Consultancy (P) Ltd.
124 Jor Bagh,                 Crest Animation Studio Ltd.
New Delhi.                    Ankar Capital Pvt. Ltd.
Consultant                    Fortis Healthcare Ltd.
                              Berger Paints (I) Ltd.
                              Mastek Ltd.
                              Ranbaxy Laboratories Ltd
                              SKS Microfinance Pvt Ltd
                              IDBI Capital Market Services Ltd.
Dr. V. Arunachalam            Tasty Bites Preffered Foods India Ltd.
547, 9th Cross, J.P. Nagar,   Centre for Study of Science Technology & Policy
Phase III,
Bangalore 560 078
Professor
Mr. Prafull Anubhai           Unichem Laboratories Ltd.,
Brij House, 1st Floor,        Gruh Finance Ltd.,
Opp High Court,               Torrent Cables Ltd.,
Stadium Road,                 The EMSAF - Mauritius
Ahmedabad 380 014             The H.K. Finechem Ltd.
Businessman                   Mahavir Spinning Mills Ltd.
                              Soma Textiles and Industries Ltd.
                              M/s Niche Generics Ltd., London
                              Management Structure & Systems Pvt Ltd.
                              Bakers Oil Tools(India) Pvt Ltd.
                              Center for Science, Technology & Policy
Mr. Suresh Talwar*            PZ Cussons India Private Limited
10, Shiv Shanti Bhuvan,       Armstrong World Industries (India) Pvt. Ltd.
146 Maharshi Karve Road,      Moly Colloids Pvt. Ltd.
Churchgate Reclamation,       Merck Ltd.
Mumbai 400 020.               Romil Finance & Investments Ltd.
Solicitor & Advocate          Sidham Finance & Investments Ltd.
                              20th Century Fox Corpn (I) Pvt Ltd
                              Aon Global Insurance Services Private Limited
                              Biocon Limited
                              Birla Sun Life Insurance Company Ltd
                              Blue Star Limited
                              Blue Star Infotech Limited
                              Cadbury India Limited
                              Carborundum Universal Limited
                              Cholamandalam MS General Insurance Co. Ltd.
                              Chowgule & Company Limited
                              Decagon Investments Pvt. Ltd.
                              Emerson Process Management(India) Pvt Ltd
                              Epitome Global Services Pvt Ltd
                              Esab India Ltd
                              Greaves Citton Ltd.
                              India Value Fund Trustee Company Pvt Ltd.
                              IVF (Mauritius) PCC
                              IVF (Mauritius) Ltd.
                              JM Morgan Stanley Securities Pvt Ltd
                              John Fowler (India) Pvt Ltd.
                              Larsen & Tourbo Ltd.
                              Man Financial (India) Pvt Ltd.
                              Renfro India Pvt Ltd.
                              Refco (India) Pvt Ltd.
                              Rediffusion- Dentsu, Young & Rubicam Pvt Ltd.
                              Sandvik Asia Ltd.
                              Shrenuj & Co Ltd.
                              Solvay Pharma India Ltd.
                              Snowcem Paints Pvt Ltd.
                              Swiss Re Shared Services (India) Pvt Ltd.
                              Showdiff Worldwide Pvt Ltd.
                              Sonata Software Ltd.
                              Warner Bros Pictures (India) Pvt Ltd.
                              Albright & Wilson Chemicals India Ltd.

                                                                                42
                                            Benk India Ltd.
                                            FCI OEN Connectors Ltd.
                                            Garware- Wall Ropes Ltd.
                                            Johnson & Johnson Ltd.
                                            Schanectady Herdillia Ltd.
                                            Schanectady (India) Holding Pvt Ltd.
                                            Trans Warranty Finance Ltd.
                                            Uhde India Ltd.
                                            Wyeth Ltd.
                                            RAKEEN Development PJSc
* The Directors are associated with sponsors.
Trustee Meetings
The Trustee have met six times in the previous year (2005-06). The performances of all the schemes are placed
before the Trustee at such meetings. The report on statutory compliance and investor servicing are also regularly
placed at such meetings by AMC. Audit committee of the Trustee has been constituted to review the internal audit
systems and the recommendation of the internal and statutory audit reports and to ensure that the rectification as
suggested by internal and external auditors are acted upon. An independent Trustee chairs the Audit Committee.
Trusteeship Fe es
The Birla Sun Life Trustee Company Private Limited shall be entitled to a fee of Rs. 5 lacs per annum apportioned over
all the schemes of Birla Mutual Fund .


Rights and Obligations of the Trustee
Pursuant to the Trust Deed constituting the Mutual Fund and SEBI (Mutual Funds) Regulations, 1996 the Trustee has
several rights and obligations.
1. The Trustee and the Asset Management Company shall with prior approval of SEBI enter into an investment
   management agreement.
2. The investment management agreement shall contain such clauses as are mentioned in the Fourth Schedule and
   other such clauses as are necessary for the purpose of making investments.
3. The Trustee shall have a right to obtain from the Asset Management Company such information as is considered
   necessary by the Trustee.
4. The Trustee shall ensure before the launch of any scheme that the Asset Management Company has: -
     a) systems in place for its back office, dealing room and accounting;
     b) appointed all key personnel including fund manager(s) for the scheme(s) and submitted their bio-data which
        shall contain the educational qualifications, past experience in the securities market to the Trustees, within
        fifteen days of their appointment;
     c)   appointed auditors to audit its accounts;
     d) appoint ed a compliance officer to comply with regulatory requirement and to redress investor grievances;
     e) appointed registrars and laid down parameters for their supervision;
     f)   prepared a compliance manual and designed internal control mechanisms including int ernal audit systems;
     g) specified norms for empanelment of brokers and marketing agents.
5. The Trustee shall ensure that the Asset Management Company has been diligent in empanelling the brokers and
   avoiding undue concentration of business with any broker.
6. The Trustee shall ensure that the Asset Management Company has not given any undue or unfair advantage to
   any associate or dealt with any of the associates of the Asset Management Company in any manner detrimental to
   the interest of the Unit holders.
7. The Trustee shall ensure that the transactions entered into by the Asset Management Company are in accordance
   with the SEBI Regulations, and the scheme.
8.   The Trustee shall ensure that the Asset Management Company has been managing the mutual fund schemes
     independently of other activities and have taken adequate steps to ensure that the interest of investors of one
     scheme are not compromised with those of any other scheme or of other activities of the asset management
     company.
9.   The Trustee shall ensure that all the activities of the Asset Management Company are in accordance with the
     provisions of SEBI Regulations.




                                                                                                                     43
10. Where the Trustee has reason to believe that the conduct of the business of the mutual fund is not in accordance
    with the Regulations and the scheme they shall forthwith take such remedial steps as are necessary and shall
    immediately inform SEBI of the violation and the action taken.
                                                                                                         uarterly basis
11. The Directors of the Trustee Company shall file the details of their transactions in securities on a q
    with the Trustee Company.
12. The Trustee shall be accountable for and be the custodian of the property of the respective schemes and shall
    hold the same in trust for the benefit of the Unit holders in accordance with the SEBI Regulations, and the
    provisions of the Trust Deed.
13. The Trustee shall take steps to ensure that the transactions of the mutual fund are in accordance with the
    provisions of the Trust Deed.
14. The Trustee shall be responsible for the calculation of any income due to be paid to the mutual fund and also of
    any income received in the mutual fund for the holders of the units of any scheme in accordance with the
    Regulations and the Trust Deed.
15. The Trustee shall obtain the consent of the unit holders of the Scheme:
    a)   When the Trustee is required to do so by SEBI in the interests of the unit holders; or
    b) Upon the request of three-fourths of the unit holders of any Scheme under the Mutual Fund; or
    c)   If a majority of the directors of the Trustee Company decide to wind up the Scheme or prematurely redeem
         the units
16. The Trustee shall ensure that no change in the fundamental attributes of any scheme or the trust or fees and
    expenses payable or any other change which would modify the scheme and affects the interest of unitholders,
    shall be carried out unless, -
    I. 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
    II. The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.
17. The Trustee shall call for the details of transactions in securities by the key personnel of the Asset Management
    Company in his/her own name or on behalf of the Asset Management Company and shall report to SEBI, as and
    when required.
18. The Trustee shall quarterly review all transactions carried out between the mutual fund, Asset Management
    Company and its associates.
19. The Trustee shall quarterly review the networth of the Asset Management Company and in case of any shortfall
    ensure that the Asset Management Company make up for the shortfall per clause (f) of sub regulation (1) of SEBI
    Regulations.
20. The Trustee shall periodically review all service contracts such as custody arrangements, transfer agency of the
    securities and satisfy itself that such contracts are executed in the interest of the unit holders.
21. The Trustee shall ensure that there is no conflict of interest between the manner of deployment of its networth by
    the Asset Management Company and the interest of the unit holders.
22. The Trustee shall periodically review the investor complaints received and the redressal of the same by the Asset
    Management Company.
23. The Trustee shall abide by the code of conduct as specified in the fifth schedule of SEBI Regulations.
24. The Trustee shall furnish to SEBI on a half yearly basis: -
    a) a report on the activities of the mutual fund;
    b) a certificate stating that the Trustees have satisfied themselves that there have been no instances of self
        dealing or front running by any of the Trustees, directors and key personnel of the Asset Management
        Company;
    c) certificate to the effect that the Asset Management Company has been managing the schemes independently
        of any other activities and in case any activities of the nature referred to in regulation 24(2) of the SEBI
                                                                nd
        Regulations have been undertaken by the AMC Co. a has taken adequate steps to ensure that the interest
        of the unit holders are protected.
25. The independent trustees shall give their comments on the report received from the Asset Management Company
    regarding the investments by the mutual fund in the securities of group companies of the sponsor.
26. Trustee shall exercise due diligence as under:
    General Due Diligence
    a)   The Trustee shall be discerning in the appointment of the Board of Directors of the AMC.
    b) The Trustee shall review the desirability of the continuance of AMC if substantial irregularities are observed in
       any scheme and shall not allow the AMC to float new schemes.
                                                                                                                     44
c) The Trustee shall ensure that the trust property is properly protected, held and administered by proper persons
and by a proper number of such persons.
d) The Trustee shall ensure that all service providers are holding appropriate registrations from SEBI or concerned
regulatory authority.
e) The Trustees shall arrange for test checks of service contracts.
f)   Trustees shall immediately report to SEBI of any special developments in the mutual fund
     Specific Due Diligence
The Trustee shall
a) Obtain internal audit reports at regular intervals from independent auditors appointed by the Trustees.
b) Obtain compliance certificates at regular intervals from the AMC.
c) Hold meetings of Trustees more frequently.
d) Consider the reports of the independent auditor and compliance reports of AMC at the meetings of Trustees for
appropriate action.
e) Maintain records of the decisions of the Trustees, AMC and its personnel.
f)   Prescribe and adhere to a code of ethics by the Trustees, AMC and its personnel.
g) Communicate in writing to the AMC of the deficiencies and checking the reduction of deficiencies.
27. Notwithstanding anything contained in sub-regulations (1) to (25) of the Regulations, the Trustees shall not be
held liable for acts done in good faith if they have exercised adequate Due Diligence honestly.
28. The independent Directors of the Trustees shall pay specific attention to the following, as may be applicable,
namely-
a) The Investment Management Agreement and the compensation paid under the agreement.
b) Service contracts with affiliates whether the AMC has charged higher fees than outside contractors for the same
services.
c) Selection of the independent Directors.
d) Securities transactions involving affiliates to the extent such transactions are permitted.
e) Selecting and nominating individuals to fill independent director vacancies.
f) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in
connection with personal securities transactions.
g) The reasonableness of the fees paid to the sponsors, AMC and any others for services provided.
h) Principal underwriting contracts and the renewals.
i)   Any service contract with the associates of the AMC.

The Asset Management Company
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the Investment Manager of Birla Mutual Fund, is a joint
venture between the Aditya Birla Group and the Sun Life Assurance Company of Canada (through its wholly-owned
subsidiary Sun Life (India) AMC Investments Inc.). Both the joint venture partners hold 50% of the equity capital of
BSLAMC. BSLAMC is acting as the Investment Manager for the schemes of Birla Mutual Fund vide the Investment
Management Agreement dated December 16, 1994.
The Directors of BSLAMC are:

Dr. K.M. Birla*, Chairman

Industrialist

Aditya Birla Centre, S. K. Ahire Marg, Mumbai 400 018.
Mr. Donald Stewart*, Chief Executive Officer

Sun Life Financial Inc, 150 King Street West, 6th Floor, Toronto, ON M5H 1J9 Canada

Mr. S.K. Mitra*, Director - Financial Services
Adtiya Birla Group

Apeejay, Second Floor, Shahid Bhagatsingh Marg, Mumbai 400 023

Mr. Ashok Goenka, Educationist
                                                                                                                 45
H-1539 C.R. Park, New Delhi 110 019.
Mr. S. S. Raman, Director

304 Cypress, Marigold Premises, Kalyani Nagar, Pune - 411014

Mr. N. N. Jambusaria, Actuary
401,Bakers Field, A22, Shastri Nagar, Near Lokhadwala Complex, Andheri (W), Mumbai-400 053.

Mr. N.C. Singhal, Director

D-107, Poornima, 23, Peddar Road, Mumbai - 400 026.
Mr. Stephan Rajotte, Actuary*

Flat A, 43/ F, Branksome Crest, 3A Tregunter Path, Mid Levels, Hong Kong

*Director(s) is/are associated with the sponsor or its associates

The Auditors of BSLAMC are:
M/s RSM & Co.
Chartered Accountants
Ambit RSM House
449, Senapati Bapat Marg

Lower Parel, Mumbai 400 013

Key Personnel of the Investment Manager
Mr. Gary Comerford, age 56 years, has been appointed as the Chief Executive Officer on deputation effective from
August 30, 2006, as the head of BSLAMC. He has done his Master in Business Administration from University of
Western Ontario (Canada) after completing Bachelors degree of Arts,. He has over 30 years of experience in the
financial services industry. Mr. Comerford joined Sun Life Financial, Canda in the year 1986 and presently is the Vice
President, Intenrational & General Manager, India, and Corporate Office. Prior to joining Sun Life Financial, he was
Vice President Marketing, Permanent Trust Company (TC Canada Trust).

The details of key personnel of BSLAMC and their experience are as under: -


Name                   Age      Designati        Educational         Business Experience
                                on               Qualificatio
                                                 ns
 A.                    38       Chief            B.Sc                Overall experience of 15 years in the Financial
Balasubramanian                 Investment       (Mathematics),      Industry. Working with the AMC for the last 10
                                Officer          Diploma        in   years. Previously worked with GIC Mutual Fund.
                                                 Financial
                                                 Management
Ravi Sharma            45       National         B.Com, PGDM         Has been with the AMC for over 6 years. During
                                Head - Sales                         his overall experience of 22 years, he has held
                                and                                  important portfolios with National Panasonic,
                                Distribution                         Videocon and Hawkins.
Sanjay Parikh          35       Chief            B.Com, C.A. &       Has held various positions over the past 11
                                Financial        C.F.A.              years in the Aditya Birla Group and its joint
                                Officer      &                       ventures, including that of Head of Product
                                Manager                              Development and Head of Accounts at Birla Sun
                                                                     Life Insurance Company Limited and Executive
                                                                     Assistant to Chairman, Aditya Birla Group. Has
                                                                     worked with M/s. Arthur Andersen, as Sr.
                                                                     Consultant for 4 years.
Raghvendra Nath        37       Vice             B. E. MBA           Over 13 years experience in Financial Services,
                                President-                           working with the AMC for 10 years, prior to this
                                Strategy    &                        worked with Spic Group
                                Business
                                Development

                                                                                                                        46
Sharmila Ranade         37     Senior Legal        B.Com,      LL.M,   Has worked for Legal & Secretarial function of
                               Manager and         PGDSL               Central Depository Services (India) Ltd., for
                               Compliance                              eight years. Prior to this assignment she has
                               Officer                                 worked for ten years at Bhabha Atomic
                                                                       Research Centre.
Hariharan Iyer          37     Head -              B.Com &             Has worked for over 12 years in the area of
                               Investor                                customer service and process management in
                                                   M.M.M
                               Services                                ING Vysya Mutual Fund and Zurich India Mutual
                                                                       Fund.

Details of Fund Management Team:

The Investment Team comprises of fund managers, equity and debt research analyst and dealers having relevant
experience in their field. A brief profile of these personnel is given below:


 Name             Age        Portfolio        Educational          Experience
                                              Qualificatio
                                              ns
 Navneet          35         Chief            M.Com,     CA,       He has been associated with the Birla Group
 Munot                       Investment       CFA                  Financial Services business for over 12 years and
                             Officer    –                          has worked in various areas of financial markets -
                             Fixed                                 Equity,    fixed  income,   foreign exchange   and
                             I ncome                               derivatives.
 Satyabrata       34         Fund             B.Com, C.A.          Over 6 years of experience in Finance and
 Mohanty                     Manage r                              Research. Previously worked in Birla Management
                                                                   Corporation Ltd.
 Ajay Garg        35         Dealer           B.E.                 Working with the AMC since Jan., 2003. Prior to th is
                             Equities &       (Electronics),       worked with Birla Sun Life Securities Ltd. Total
                             Equity           MBA                  Work Experience of around 11 years in Equity
                             Derivatives      (Finance).           Dealing.
Jayesh Gandhi     37         Fund             CA, CFA, Master Over 11 years of experience. He has been with
                             Manager          of    International BSLAMC since September 2004 as a Portfolio
                                              Management          Manager for Portfolio Management Services of
                                                                  BSLAMC. Prior to joining BSLAMC, he has worked
                                                                  with Zacks Investment Research, Chicago, USA,
                                                                  Think Values, Salt Lake City, USA, J V Gokal Finance
                                                                  & Investments Private Limited, J M Shares and Stock
                                                                  Brokers and Dalal Street Communication
Mahesh Patil      37         Fund              B.E.               Over 13 years experience. Prior to joining BSLAMC,
                             Manager           (Electrical),      he has worked with Reliance Infocom Ltd. in
                                               MMS                Business Strategy, and as a Senior Research
                                               (Finance),         Analyst with Motilal Oswal Securities and Parag
                                               CFA (ICFAI,        Parikh Financial Advisory Services Ltd.
                                               Hyderabad)

Ajay Argal        37         Fund              B. Tech (IIT       Over 12 years experience. Prior to joining BSLAMC,
                             Manager           Mumbai),           he has worked with UTI AMC and had handled
                                               PGDM (IIM          various    aspects     of   the   Investments       Function
                                               Bangalore)         including managing offshore funds, equity funds,
                                                                  balanced funds, equity research and equity dealing.

                  27                                              Over 6 years of experience in Equity Research.
Ankit Sancheti                Fund             B.Com, CA          Previously worked with Development Credit Bank and
                              Manager                             Anand Rathi Securities.
                                                                  Over 2 years with the Aditya Birla Group
Sharad             25         Fund             B.Chem. Engg,
Ramnarayanan                  Manager          MBA (Finance)
Fund Managers:




                                                                                                                                 47
NAME OF THE SCHEME                                                        FUND MANAGER

Birla Sun Life Basic Industries Fund                                       Ank it Sancheti
Birla Sun Life New Millenium Fund                                           Mahesh Patil
Birla Sun Life Buy India Fund                                              Jayesh Gandhi
Birla Sun Life Equity Fund                                                  Mahesh Patil
Birla Sun Life Tax Relief ' 96                                               Ajay Garg
Birla Sun Life Frontline Equity Fund                                        Mahesh Patil
Birla Sun Life Monthly Income                                             Navneet Munot
Birla Sun Life ' 95 Fund                                                  Navneet Munot
Birla Sun Life Income Fund                                                Navneet Munot
Birla Sun Life Government Securities Fund                               Navneet Munot
Birla Sun Life Short Term Fund                                            Navneet Munot
Birla Sun Life Cash Manager                                               Navneet Munot

Other Activities of BSLAMC

BSLAMC acts as investment advisor to two offshore funds, namely, India Advantage (Offshore) Fund and India Excel
(Offshore) Fund. The AMC is also registered with SEBI as a Portfolio Manager (Registration No. INP000000597) dated
January 22, 2002. This registration has been renewed for a period of 3 years upto January 31, 2008. This activity is
being undertaken in compliance with the provisions of Regulation 24(2) of SEBI (Mutual Funds) Regulations and there
is no conflict of interest.


Obligations of the Asset Management Company

1. The Asset Management Company shall take all reasonable steps and exercise due diligence to ensure that the
investment of funds pertaining to any scheme is not contrary to the provisions of the Regulations and the Trust Deed.

2. The Asset Management Company shall exercise due diligence and care in all its investment decisions as would be
exercised by other persons engaged in the same business.
3. The Asset Management Company shall be responsible for the acts of commissions or omissions by its employees
or the persons whose services have been procured by the Asset Management Company.
4.   The Asset Management Company shall submit to the trustees Quarterly reports of each year on its activities and
     the compliance with the Regulations.
5.   The Trustees at the request of the Asset Management Company may terminate the assignment of the Asset
     Management Company at any time. Provided that such termination shall become effective only after the Trustees
     have accepted the termination of assignment and communicated their decision in writing to the Asset
     Management Company. Notwithstanding anything contained in any contract or agreement or termination, the
     Asset Management Company or its directors or other officers shall not be absolved of liability to the mutual fund
     for their acts of commission or omissions, while holding such position or office.
6.   An Asset Management Company shall not through any broker associated with the sponsor, purchase or sell
     securities, which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual
     fund in all its schemes. Provided that for the purpose of this sub-regulation, aggregate purchase and sale of
     securities shall exclude sale and distribution of units issued by the mutual fund. Provided further that the
     aforesaid limit of 5% shall apply for a block of any three months.
7.   The Asset Management Company shall not purchase or sell securities through any broker [other than a broker
     referred to in clause 6 above] which is average of 5% or more of the aggregate purchases and sale of securities
     made by the mutual fund in all its schemes, unless the Asset Management Company has recorded in writing the
     justification for exceeding the limit of 5% and reports of all such investments are sent to the Trustees on a
     quarterly basis. Provided that the aforesaid limit of 5% shall apply for a block of three months.
8.   The Asset Management Company shall not utilise the services of the sponsor or any of its associates, employees
     or their relatives, for the purpose of any securities transaction and distribution and sale of securities. Provided
     that an Asset Management Company may utilise such services if disclosure to that effect is made to the unit
     holders and the brokerage or commission paid is also disclosed in the half yearly annual accounts of the mutual
     fund.
     Provided further that the mutual funds shall disclose at the time of declaring half-yearly and yearly results
     a. any underwriting obligations undertaken by the schemes of the mutual funds with respect to the issue of
         securities of associate companies

                                                                                                                     48
     b.   devolvement, if any
     c.   subscription by the schemes in the issues lead managed by associate companies
     d.   subscription to any issue of equity or debt on private placement basis where the sponsor or any of its
          associate companies has acted as arranger or manager.
9.   The Asset Management Company shall file with the Trustees the details of transactions in securities by the key
     personnel of the Asset Man agement Company in their own name or on behalf of the Asset Management Company
     and shall also report to SEBI, as and when required by SEBI.
10. In case the Asset Management Company enters into any securities transactions with any of its associates a report
    to that effect shall be sent to the Trustees at its next meeting.
11. In case any company has invested more than 5 per cent of the net asset value of a scheme, the investment made
    by that scheme or by any other scheme of the same mutual fund in that company or its subsidiaries shall be
    brought to the notice of the Trustees by the Asset Management Company and be disclosed in the half yearly and
    annual accounts of the respective schemes with justification for such investment. Provided the latter investment
    has been made within one year of the date of the former investment calculated on either side.
12. The Asset Management Company shall file with the Trustees and SEBI -
    a. detailed bio-data of all its Directors alongwith their interest in other companies within fifteen days of their
        appointment; and
    b. Any change in the interests of Directors every six months.
    c. A quarterly report to the Trustees giving details and adequate justification about the purchase and sale of the
        securities of the group companies of the sponsor or the Asset Management Company as the case may be, by
        the mutual fund during the said quarter.
13.Each Director of the Asset Management Company shall file the details of his transactions of dealing in securities
   with the Trustees on a quarterly basis in accordance with guidelines issued by SEBI
14. The Asset Management Company shall not appoint any person as key personnel who has been found guilty of any
    economic offence or involved in violation of securities laws.
15. The Asset Management Company shall appoint registrars and share transfer agents who are registered with the
    SEBI.
     16. The Asset Management Company shall abide by the Code of Conduct as specified in the Fifth Schedule of the
         SEBI Regulations.

Investment Management Fees
The Investment management fees charged by BSLAMC shall be 1.25 percent of the average weekly net assets for
assets upto Rs.100 crores and 1.00 percent of the average weekly net assets on the balance amount above Rs. 100
crores.

Modifications to the Schemes
The Trustee may from time to time, prescribe such terms and make such rules for the purpose of giving effect           to the
provisions of the Schemes with power to the Investment Manager to add to, alter or amend all or any of the              terms
and rules that may be framed from time to time. However, the Trustee shall ensure that no change                       in the
fundamental attributes of any schemes or the trust or fees and expenses payable or any other change which              would
modify the scheme and affects the interest of unitholders, shall be carried out unless,
I. 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
II. The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.
                                                                                                         ot
If any difficulty arises in giving effect to the provisions of the Schemes, the Trustee may do anything n inconsistent
with such provisions, which appear to them to be necessary, desirable or expedient, for the purpose of removing such
difficulty.
In case of amendments made by SEBI to the Regulations, and changes effected in the Income Tax Act, 1961 or the
rules thereof, the same will be applicable to the Schemes.
The Registrar
BSLAMC has appointed Computer Age Management Services Pvt. Ltd. (CAMS) to act as Registrar and Transfer Agents
(“The Registrar”) to the Scheme. The Registrar is registered with SEBI under registration number INR 000002813.
BSLAMC and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that the
Registrar is able to provide the services required and has adequate facilities, including systems facilities and back up,
to process applications and despatch Account Statements/Unit certificates to Unit holders within the time limits
prescribed in the Regulations and also sufficient capacity to handle investor complaints.

                                                                                                                          49
The Custodian
J.P. Morgan Chase Bank, located at Mafatlal Centre, 9th Floor, Nariman Point, Mumbai-400 021, has been appointed
as the custodian of the securities that are bought and sold under the Schemes. The custodian is registered with SEBI
under registration number IN/CUS/014. The responsibilities of the custodian include:
•    Keeping in safe custody the securities and such other instruments belonging to the Schemes.
•    Use of reasonable care in performing its obligations
•    Responsibility for loss due to negligence or fraud
•    Ensuring the smooth inflow / outflow of securities and such other instruments as and when necessary in the best
     interests of the investors.
•    Ensuring that the benefits due to the holdings are recovered.
•    Provide detailed information and other reports as required by the AMC.
•    Maintain confidentiality of the transactions.


5.       BIRLA MUTUAL FUND- INVESTMENT OBJECTIVES, POLICIES &LIMITATIONS OF THE SCHEMES

DEBT SCHEMES:
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
     •     Fixed Coupon Debentures
                                                                                                                 50
      •   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 but are not limited to,
•     Overnight Call
•     Repo / Reverse Repo Agreements
•     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. PSU / DFI / Corporate paper with a residual
    maturity of < 1 year, are actively traded and offer a viable investment option.
The following table gives approximate yields prevailing in August 2006 on some instruments. These yields are
   indicative and do not indicate yields that may be obtained in future as interest rates keep changing consequent to
   changes in the macro economic conditions and RBI Policies.


Instrument                                             Yield Range (% per annum)
Interbank Call Money                                   6.00% - 6.10%
91 Day Treasury Bill                                   6.50% - 6.60%
P1 + Commercial Paper 90 Days                          6.90% - 7.00%
Generally, for instruments issued by a non-Government entity (corporate/PSU bonds), the yield is higher than the
yield on a Government Security wit h corresponding maturity. The difference, known as credit spread, depends on
various factors including the credit rating of the entity
5.1     Birla sun Life MONTHLY INCOME
(Monthly income is not assured and is subject to availability of distributable surplus. )
The scheme offers investors Monthly Dividend, Quarterly Dividend and Growth Plans. The Trustee reserves the right
to add further Schemes with differing Plans / options / sub-products to Birla Sun Life Monthly Income at a later date
subject to obtaining requisite SEBI approvals and to add to / alter the existing Investment Plans in Birla Sun Life
Monthly Income
5.1.1     Birla Sun Life Monthly Income - Asset Allocation Pattern
    Asset Class                 Maximum      Risk
                                Exposure     Profile
    Government of India Securities 90%       Sovereign
    Call Money and Treasury Bills 60%        Low
    Corporate Debt                 75%       Medium – High
    State Government Bonds         50%       Low
    Commercial Paper               50%       Medium – High
    Certificates of Deposit        50%       Low – Medium
    Discounted Trade Bills         50%       Low – Medium
    Asset Backed Securities        50%       Low – Medium
    Government Guaranteed Bonds50%           Low
    Public Sector Undertaking Bonds50%       Medium
    Financial Institution &
    Banking Sector Bonds           50%       Low – Medium
    Equity Securities              15%       High

The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance
them within 30 days to conform to the above limits.
Investment Objectives & Policies
The primary investment objective of the Scheme is to generate regular income so as to make monthly and quarterly
distributions to Unitholders and the secondary objective is growth of capital. Income may be generated through
                                                                                                                  51
receipt of coupon payments, amortization of the discount on debt instruments, receipt of dividends or purchase and
sale of securities in the underlying portfolio. The Scheme will, under normal market conditions, invest its net assets
primarily in fixed income securities, money market instruments, cash and cash equivalents. The Scheme will maintain
a small exposure to the equity market. All money market investments taken together shall not exceed 60% of the
total net assets of Birla Sun Life Monthly Income. Fixed-income and money market securities includes but is not
limited to Treasury bills, Government of India securities, corporate debt, state and government -guaranteed bonds,
public sector bonds, convertible securities, commercial paper, certificates of deposit, discounted trade bills, asset-
backed securities, financial institution and banking sector bonds and call money. Investments in debt and money
market instruments will be made in securities rated as investment grade by at least one recognised rating agency.
Investments in unrated securities will be made with the prior approval of the Boards of Directors of the Trustee
Company and the Asset Management Company or a committee thereof. From time to time it is possible that the
portfolio may hold cash. The Scheme may also enter into repurchase and reverse repurchase obligations in all
securities held by it as per the guidelines and regulations applicable to such transactions. Further, the Scheme intends
to participate in securities lending as permitted under the SEBI (MF) Regulations, 1996.
For purpose of this Offer Document equity securities include debt securities convertible into shares and rights or
warrants to purchase shares.
It is the intention of the Scheme to trade in the derivatives market in compliance with SEBI (MF) Regulations, 1996.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as
secondary market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The
Mutual Fund under this Scheme may invest in non-publicly offered debt securities (including convertible securities).
The investments may have tenors that could be short-term (i.e. less than one year) or long-term (i.e. greater than
one year).
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, interest rates, liquidity and other relevant considerations, including the risks associated with each
investment. The Scheme will, in order to reduce the risks associated with any one security, utilize a variety of
investments. Performance will depend on the Asset Management Company's ability to assess accurately and react to
changing market conditions. While it is the intention of the Scheme to maintain the maximum exposure guidelines
provided in the table above there may be instances when these percentages may be exceeded. Typically, this may
occur while the corpus is small thereby causing diversification issues.
No more than 5% of the net assets of Birla Sun Life Monthly Income may be invested in equity and equity-related
securities that are not listed on any stock exchange (including the OTCEI). Any such investments will only be made if
the Asset Management Company believes that such securities may be listed within a two year period. This policy,
however, is not applicable to the Scheme's acquisition of equity and equity related securities in initial public offerings
that at the time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of
such initial public offering will be so listed.
The Mutual Fund under this Scheme will not invest more than 15% of its net assets in the debt (including non-publicly
offered debt securities) and money market securities of any one issuer, excluding call money. The Scheme will not
invest more than 25% of its net assets in the debt and money market securities of any one industry. The 25%
industry exposure limit will apply to investments made in securities under the following classes: Corporate Debt, PSU
Bonds, Commercial Paper and Asset Backed Securities. The Trustee has the right, in its sole discretion, to limit
redemptions under certain circumstances, see section 7.8, Right to limit Redemptions.
The Scheme reserves the right to invest in newer investment products including foreign securities (i.e. offshore
investments) subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations.
5.2 BIRLA SUN LIFE IN C O M E F U N D

The investment objective of the Scheme is to generate income and capital appreciation by investing 100% of the
corpus in a diversified portfolio of debt and money market securities. Under normal market conditions, the Scheme's
maximum exposure as a percentage of its net assets to different debt and money market securities is set out below :

 Securities/         Maximum Risk             Tenor
 Instruments         Exposure Profile
 Dated Fixed Income Securities
 Treasury Bills           100%     Sovereign Short
 Government of            100%     Sovereign Short to
 India Securities                            Medium
 Corporate Debt             80%    Medium    Medium
                                   to High   to Long


                                                                                                                       52
 State Government           50% Low         Medium
 Bonds, Government
 Guaranteed Bonds,
 PSU Bonds, Call Money, Commercial Paper,
 Discounted Trade Bills. CD’s
 Asset-Backed               30%
 Securities
 Financial Institution      25%
 & Banking Sector bonds
The Fund Manager will review the portfolio for adherence with the above asset allocation pattern and rebalance the
same within 30 days to conform to the above limits.
Investment objectives of the Scheme are proposed to be achieved by investing, under normal market conditions,
100% of the corpus in a diversified portfolio of debt (fixed income) and money market securities. The Scheme retains
the flexibility to invest across all of the various securities and other instruments in the debt and money markets. From
time to time it is possible that the portfolio may hold cash.
Investment policies of the Scheme comply with the rules, regulations and guidelines laid out in the SEBI (MF)
Regulations 1996, specifically the Seventh Schedule.
All of the Scheme's assets will be invested in transferable securities. The corpus of the Scheme shall not in any
manner be used in option trading, short selling or carry forward transactions as stipulated in SEBI (MF) Regulations
and amended from time to time.
The Mutual Fund under the Scheme will not invest more than 15% of its net assets in the debt and money market
securities of any one issuer excluding Call Money. A 25% industry exposure limit will apply only to investments made
by the Scheme in securities under the following classes: Corporate Debt, PSU Bonds, Commercial Paper and Asset -
Backed Securities.
Investments in debt and money market instruments will be made in securities rated as investment grade by atleast
one recognised rating agency. Investments in unrated securities will be made with the prior approval of the Boards of
Directors of the Trustee Company and the Asset Management Company or a committee thereof.
The Scheme reserves the right to invest in newer investment products including foreign debt (i.e. offshore
investments) subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations.
Under normal market conditions, the Scheme will be managed so as to maintain a Rupee weighted average duration
                                                                        l
not exceeding five years. Individual investments may have maturity ess than, equal to or greater than five years. The
portfolios are expected to generate returns by prudently investing in sectors and issues in the debt and money
markets, which provide consistently superior yields at low levels of risk. The Trustee has the right, in its sole
discretion, to limit redemptions under certain circumstances, see section 7.8, Right to limit Redemptions.
Due consideration will be given to the liquidity of the Scheme's investments keeping in mind that the Scheme is open-
ended. Liquidity will be provided through investment allocation, staggering maturities and investing in structured
securities. Liquidity will also be managed by opportunistically investing in the call money market when call money
yields are attractive relative to other money market yields and by laddering coupon payments and maturities within
the Scheme's investments. Additional liquidity will also be provided through borrowing to meet redemptions in
accordance with the SEBI (MF) Regulations, 1996. See section 5.21, Bo rrowing by the Mutual Fund.
Investments may be made in listed or unlisted instruments. Securities may be listed on any of the recognised Indian
stock exchanges including the National Stock Exchange and the Over the Counter Exchange of India. Investments
may be made as secondary market purchases, initial public offers, private placements, negotiated investments, rights
offers, etc.
The Scheme may enter into securities lending as allowed under the SEBI (MF) Amendment Regulations, 1998.
5.3 BIRLA SUN LIFE GOVERNMENT SECURITIES FUND

Birla Sun Life Government Securities fund seeks to provide investors current income consistent with a portfolio
invested in securities issued by the Government of India (GSecs) or the State Governments. A portfolio invested in
GSecs or state government securities is normally associated with an investment strategy in the debt markets that is
free of credit risk (i.e. the risk of default by the issuer). Investments may also be made in the call market or in an
alternative investment to the call market as may be directed by the RBI. Income may be generated through the
receipt of coupon payments, the amortization of the discount on debt instruments or the purchase and sale of
securities in the underlying portfolio. The secondary objective of the Scheme is capital appreciation.
The Scheme offers investors two separate investment plans (i.e. Short Term Plan and Long Term Plan) representing
investments made and held in two separate investment portfolios. The portfolios may differ in the portfolio allocation
to a particular asset class and the issue held as well as in the duration of each portfolio. The Short Term Plan will be
managed to a maximum rupee weighted duration of three years while the Long Term Plan will be managed to a
                                                                                                                     53
maximum rupee weighted duration of seven years. Each of these investment plans will, under normal market
conditions, invest its net assets as per the asset allocation hereunder.
 Asset Class                      Maximum Credit Risk
                                  Exposure Profile
 Government of India Dated Securities100% Sovereign
 State Governments Dated Securities100%     Low
 Government of India Treasury Bills 100%  Sovereign
The Fund Manager will review the portfolio for adherence with the above rupee weighted duration norms and
rebalance the same within 30 days to conform to the above limits.
The Short Term Plan and the Long Term Plan are not Money Market Mutual Funds schemes as defined by the RBI. It
is the intention of the Scheme to avail itself of the liquidity support from the RBI extended to mutual funds dedicated
to investments in government securities via circular IDMC.No.2741/03.01.00/95-96 dated April 20, 1996 as amended
from time to time. Further, non-Government Provident Funds, Superannuation Funds, Gratuity Funds and Pension
Funds through its investments in government securities may invest in the Scheme.
In addition to the securities stated in the table above, the Scheme may enter into repos/reverse repos in the
securities that it will invest in or as may be permitted by the RBI. From time to time the Scheme may hold cash. A
part of the net assets may be invested in the call money market or in an alternative investment for the call money
market as may be provided by the RBI to meet the liquidity requirements. The Scheme will trade in the derivatives
market in compliance with the relevant SEBI guidelines. The Scheme reserves the right to invest in newer investment
products subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations.
Investments may be made as primary market offers, auctions, secondary market purchases, private placements or
negotiated investments. Individual investments may have tenors that vary from short-term (i.e. less than one year) to
long-term (i.e. ten years or more). The Trustee has the right, in its sole discretion, to limit redemptions under certain
circumstances, see section 7.8, Right to limit Redemptions.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, interest rates, liquidity an d other relevant considerations, including the risks associated with each
investment. Performance will depend on the Asset Management Company's ability to assess accurately and react to
changing market conditions.
5.4 BIRLA SUN LIFE CASH MANAGER

The investment objective of the Scheme is to provide current income which is consistent with a portfolio that offers
investors superior liquidity. This objective is proposed to be achieved by investing, under normal market conditions,
100% of the corpus in a diversified portfolio of debt (fixed income) and money market securities. The Scheme retains
the flexibility to invest across all of the various securities and other instruments in the debt and money markets. From
time to time it is possible that the portfolio may hold cash. Under normal market conditions, the Scheme's maximum
exposure as a percentage of its net assets to different debt and money market securities is set out below.
 Securities/         Maximum Risk
 Instruments         Exposure Profile         Tenor
 Dated Fixed Income Secu rities
 Central Government        75%    Sovereign           Short to Medium
 Dated Securities
 Private Sector Corporate 75%     Medium Medium to Long
 Debt                             to High
 State Government          30%    Low         Medium to Long
 Dated Securities
 Bonds Guaranteed by the 30% Low              Medium to Long
 Central/State Government
 Public Sector Undertaking 75% Medium Medium to Long
 (PSU) Bonds
 Asset-Backed Securities 75%      Low to Short to Medium
                                  Medium
 Financial Institution &   75%    Low to Medium to Long
 Banking Sector Bonds             Medium
 Money Market Securities
 Call Money                100%   Low         Short
 Treasury Bills            100%   Sovereign           Short
                                                                                                                      54
 Commercial Paper            75%     Medium Short
                                     to High
 Certificates of Deposit     75%     Low to Short
                                     Medium
 Discounted Trade Bills      50%     Low to Short
                                     Medium
In cases where there is a drastic reduction in the corpus of the scheme due to large redemptions, the fund manager
would be required to rebalance the portfolio in order to conform to the above limits within a period of 30 days.
In accordance with SEBI Circular No. SEBI/IMD/CIR No.11/78450, dated October 11, 2006 Birla Sun life Cash
Manager shall have the following characteristics with regard to its portfolio :
A) the mark-to-market component of the fund on a weekly average basis is less than 10%;

B) the repricing tenor is not more than 1 year, reckoned as under –

(i) for a fixed rate asset, the remaining tenor is 1 year or less;
(ii) for a floating rate asset, the interest reset frequency is 1 year or less;
(iii) for a fixed rate or floating rate asset where the principal is paid in a staggered and/or on amortizing basis (e.g.
      securitized papers), the average maturity of such an asset is 1 year or less;
(iv) for a portfolio using interest rate swaps,
      a. the composite floating rate asset (underlying fixed rate asset and interest rate swap, paying fixed and
          receiving floating) has interest reset frequency upto 1 year;
      b. if interest rate swaps (receiving fixed and paying floating), have been used to convert a floating rate asset
          into a fixed rate asset, the fixed leg of the interest rate swap having remaining tenor upto 1 year;

(v) for a portfolio using forward rate agreements, the summation of the beginning and end dates of the period
covered is 1 year or less;

         and

C) if there are positions in interest rate futures and bond futures, the repricing risk is 1 year or less

 2.     For the purpose of sub-clause (A) of clause 1, mark to market shall mean the valuation of an asset (e.g.
marketable securities, derivatives and other financial contracts) using a traded price or a derived price from the
corresponding yield curve. Further, it is clarified that for the purpose of calculating the mark to market component of
the portfolio of the liquid scheme(s)/plan(s), money market instruments shall be excluded.

 3.   For the purpose of sub-clause (B) of clause 1, it is clarified that the repricing tenor of each of the securities
included in the portfolio of the liquid scheme(s)/ plan(s) shall be 1 year or less.

The investment policies of the Scheme comply with the rules, regulations and guidelines laid out in the SEBI (MF)
Regulations 1996, specifically the Seventh Schedule.
All of the Scheme's assets will be invested in transferable securities. The corpus of the Scheme shall not in any
manner be used in option trading, short selling or carry forward transactions.
The Scheme has received and intends to maintain a AAAf rating from The Credit Rating Information Services of India
Limited ("CRISIL"). Under the CRISIL Rating Agreement, the Scheme can invest in Government of India securities and
securities that have been rated by CRISIL without prior approval. The Scheme shall maintain the credit score
applicable for the rating at all times. In case the Scheme intends to invest in securities not rated by CRISIL, the fund
shall seek CRISIL's view prior to investment. In the event any security held by the Scheme is downgraded, the credit
factor applicable on the security would be based on the revised rating. In case the credit factor revision results in the
credit score of the fund exceeding the limit applicable for the fund's rating, the fund shall be given a curing period of
30 days from the date of downgrade to bring back the credit score within the limits applicable to its rating. Call money
lending will be only to CRISIL approved counterparties. The Scheme will not engage in bill discounting activity but
rediscounting of bills is permitted with CRISIL approved counterparties. All transactions will be carried out on a
delivery versus payment basis.
The rating of CRISIL is not an opinion on the Asset Management Company's willingness or ability to make timely
payment to the investor. The rating is also not an opinion on the stability of the NAV of the scheme, which could vary
with market developments.

                                                                                                                      55
Under normal market conditions, the Scheme will be managed so as to maintain a Rupee weighted average maturity
not exceeding 1.5 years. No individual investment will have a maturity greater than three years. The portfolio is
expected to generate its return by prudently investing in sectors and issues in the debt and money markets, which
provide consistently superior yields at low levels of risk. The Trustee has the right, in its sole discretion, to limit
redemptions under certain circumstances, see section 7.8, Right to limit Redemptions.
Due consideration will be given to the liquidity of the Scheme's investments keeping in mind that the Scheme is open-
ended and aimed at providing a high degree of liquidity. Liquidity generally will be provided through:
l     Investment allocation by primarily choosing to invest a substantial portion of the Scheme's assets in the most
      liquid part of the fixed income market, i.e. call money, Treasury Bills, Government of India and State Government
      securities, in which there are relatively significant traded volumes.
l     Laddering maturities and coupons and
l     Investing in specially structured securities, especially where the security has been structured to offer the buyer
      the option to liquidate prior to the final maturity.
l     Liquidity may also be provided through borrowing to meet redemptions in accordance with the SEBI (MF)
      Regulations, 1996. See section 5.21, Borrowing by the Mutual Fund.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the Over the Counter Exchange of India.
Investments may be made as secondary market purchases, initial public offers, private placements, negotiated
investments, rights offers, etc.
The Scheme may enter into repurchase / reverse repurchase obligations (as and when applicable regulations permit)
in order to manage liquidity as also for investment purposes. The amount of repurchase obligations shall be in
compliance with the applicable SEBI Regulations.
The Scheme may enter into securities lending as allowed under the SEBI (MF) Amendment Regulations, 1998.
5.5 BIRLA SUN LIFE SHORT TERM FUND

The investment objective of the Scheme is to generate income and capital appreciation by investing 100% of the
corpus in a diversified portfolio of debt and money market securities with relatively low levels of interest rate risk. The
portfolio is expected to generate returns by prudently investing in sectors and issues in the debt and money markets
which provide consistently superior yields at low levels of risk. In order to achieve the objective of lower interest rate
risk the Scheme will typically invest 70-80% of its funds in fixed rate debt instruments having maturity less than one
year. Reduced interest rate risk may also be achieved by investing the corpus of the fund in floating rate assets. In
tune with the investment objectives of the Scheme, the assets will be invested primarily in money market securities
and short-term bonds and debentures. Under normal market conditions, the Scheme's maximum exposure as a
percentage of its net assets to different debt and money market securities is set out below :
    Securities/        Maximum Risk
    Instruments        Exposure Profile     Tenor
    Dated Fixed Income Securities
    Treasury Bills       100% Sovereign       Short
    Government of India 100% Sovereign        Short to Medium
    Securities
    Corporate Debt       100% Medium Medium to Long
                                 to High
    State Government Bonds 50% Low       Medium to Long
    Government Guaranteed 50% Low           Medium to Long
    Bonds
    Public Sector Undertaking 100% Medium   Medium to Long
    (PSU) Bonds
    Asset-Backed Securities 75% Low to      Short to Medium
                                   Medium
    Financial Institution &  75% Low to     Medium to Long
    Banking Sector Bonds           Medium
    Money Market Securities
    Call Money          100%       Low      Short
    Commercial Paper       100%    Medium Short
                                   to High


                                                                                                                        56
 Certificates of Deposit   100%   Low to Short
                                  Medium
 Discounted Trade Bills    75%    Low to Short
                                  Medium

The Fund manager may also make investments in Term/Fixed deposits from time to time. The Fund Manager will
review the portfolio for adherence with the above asset allocation pattern and rebalance the same within 30 days to
conform to the above limits.
Investment objectives of the Scheme are proposed to be achieved by investing, under normal market conditions,
100% of the corpus in a diversified portfolio of debt (fixed income) and money market securities. The Scheme retains
the flexibility to invest across all of the various securities in the debt and money markets. From time to time it is
possible that the portfolio may hold cash. The Scheme reserves the right to invest its entire allocation in any one or
more of the debt security classes to the extent stated hereinabove. For instance, 75% of the entire asset allocation,
may be invested in asset-backed securities.
Investment policies of the Scheme comply with the rules, regulations and guidelines laid out in the SEBI (MF)
Regulations 1996, specifically the Seventh Schedule.
All of the Scheme's assets will be invested in transferable securities. The corpus of the Scheme shall not in any
manner be used in option trading, short selling or carry forward transactions as stipulated in SEBI (MF) Regulations
and amended from time to time.
Investments in debt and money market instruments will be made in securities rated as investment grade by atleast
one recognised rating agency. Investments in unrated securities will be made with the prior approval of the Boards of
Directors of the Trustee Company and the Asset Management Company or a committee thereof.
The Scheme reserves the right to invest in newer investment products at a future date subject to approval of the
Trustee Company and in accordance with any applicable SEBI and / or RBI guidelines that may be issued in this
regard, and after making the required disclosures prescribed under SEBI (MF) Regulations or by any other regulatory
body.
However, such investments also entail additional risks. Such investment opportunities may be pursued by the Scheme
provided they are considered appropriate in terms of the overall investment objectives of the Scheme.
It is the intention of the Scheme to use fixed income derivatives to achieve investment objectives in compliance with
SEBI (MF) Regulations, 1996.
The Scheme proposes to invest in fixed income and money market securities. The liquidity of certain of these
                                                                                                   f
investments may be restricted by trading volumes and settlement periods. Different segments o the Indian financial
markets have settlements ranging from one-to-fourteen days, and such periods may be extended significantly by
unforeseen circumstances. Investment in unlisted and / or unrated securities too may become realisable only upon
maturity of the securities. In addition, the Trustee has the right, in its sole discretion, to limit redemptions under
certain circumstances, see section 7.8, Right to limit Redemptions.
Due consideration will be given to the liquidity of the Scheme's investments keeping in mind that the Scheme is open-
ended. Liquidity will be provided through investment allocation, staggering maturities and investing in structured
securities. Liquidity will also be managed by opportunistically investing in the call money market when call money
yields are attractive relative to other money market yields and by laddering coupon payments and maturities within
the Scheme's investments. Additional liquidity will also be provided through borrowing to meet redemptions in
accordance with the SEBI (MF) Regulations, 1996. See section 5.21, Borrowing by the Mutual Fund.
Investments may be made in listed or unlisted instruments. Securities may be listed on any of the recognised Indian
stock exchanges including the National Stock Exchange and the Over the Counter Exchange of India. Investments
may be made as secondary market purchases, initial public offers, private placements, negotiated investments, rights
offers, etc.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, interest rates, liquidity and other relevant considerations, including the risks associated with each
investment. The Scheme will, in order to reduce the risks associated with any one security, utilize a variety of
investments. Performance will depend on the Asset Management Company's ability to assess accurately and react to
changing market conditions. While it is the intention of the Scheme to maintain the maximum exposure guidelines
provided in the table above there may be instances when these percentages may be exceeded. Typically, this may
occur when the net assets of the scheme fall below Rs. 30 Crores.
The Scheme may enter into securities lending as allowed under the SEBI (MF) Amendment Regulations, 1998.
EQU I T Y S C H E M E S
5.6 THE BIRLA SUN LIF E S E C T O R S E L E C T S E RI E S



                                                                                                                   57
The Birla Sun Life Sector Select Series is a family of three Schemes each managed to a separate investment theme.
Each Scheme will be managed through a separate investment portfolio. Each Scheme will offer Unitholders a Growth
and a Dividend Plan. The investment themes for each Scheme are as follows:
5.6.1 BIRLA SUN LIFE BUY INDIA FUND

The scheme will be focused on investing in businesses that are driven by India's large population and inherent
consumption patterns. The focus of the scheme will be in the consumer and health care sectors. The consumer sector
would include companies that derive a large percentage of their revenue from products or services supplied to other
consumer companies. Consumer businesses would include food, beverages, tobacco, personal care, appliances,
apparel/accessories, retailing, media, hotels and other businesses that involve either (a) an obvious or pronounced
element of branding and/or (b) a mass point of purchase patronage. Health care businesses would include
pharmaceuticals, OTC medicine, ayurveda/herbal products, hospitals, drug intermediaries, fine chemicals and
agrochemicals.
5.6.2 BIRLA SUN LIFE NEW MILLENNIUM FUND

This scheme will focus on investing in technology and technology dependent companies. Hardware, peripherals and
components, Software (products and services), telecom, telecommunications and media, internet and E-commerce,
and other technology enabled companies (e.g. transaction processing and call centers). These sectors are often
characterised as being largely insulated from economic cycles but the companies in which the fund invests could be
adversely affected by technological change and obsolescence or by a lack of commercial acceptance of their new
product or process.
5.6.3 BIRLA SUN LIFE BASIC INDUSTRIES FU ND

This scheme will focus on investing in companies sensitive to economic cycles and commodity pricing cycles. The
investments made by the scheme will be in companies which are often referred to as cyclical companies. The sector
universe would include, but not be limited to, automobiles and auto ancillaries, engineering, banking, cement,
construction, metals, mining, transportation, steel, and paper.
Common Investment Objectives & Policies
The primary investment objective of the Schemes under BSLSS is to generate long term growth of capital and the
secondary objective is income generation and the distribution of dividend. The Schemes will, under normal market
conditions, attempt to remain fully invested in the equity market focusing on the investment theme of each Scheme.
The following table provides an indicative asset allocation of each Scheme's portfolio.

 Portfolio Asset Allocation Target           Allocation
                          Allocation          Range
 Equity & Equity Related        100%        80% - 100%
 Debt & Money Markets            0%          0% - 20%

The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance
them within 30 days to conform to the above limits.
For purposes of this Offer Document, equity securities include debt securities convertible into shares and rights or
warrants to purchase shares. Fixed-income and money market securities include but is not limited to Treasury bills,
Government of India securities, corporate debt, state and government-guaranteed bonds, public sector bonds,
convertible securities, commercial paper, certificates of deposit, discounted trade bills, securitised debt, financial
institution and banking sector bonds and call money. Each Scheme reserves the right to invest its entire allocation to
debt in any one of the debt security classes stated herein. For instance the entire allocation to debt, if any, may be
invested in asset-backed securities. Investments in debt and money market instruments will be made in securities
         s
rated a investment grade by at least one recognised rating agency. Investments in unrated securities will be made
with the prior approval of the Boards of Directors of the Trustee Company and the Asset Management Company or a
Committee thereof. From time to time it is possible that the portfolios may hold cash.
The Schemes may also enter into repurchase and reverse repurchase obligations in all securities held by them as per
the guidelines and regulations applicable to such transactions. Further, the Schemes intend to participate in securities
lending as permitted under the SEBI (MF) Regulations, 1996. It is the intention of each Scheme to trade in the
derivatives market as and when the SEBI (MF) Regulations, 1996 permit mutual funds to participate in the derivatives
market. Each Scheme also intends to invest in foreign equity and debt securities (i.e. offshore investments) as and
when permitted by SEBI and in accordance with the regulations then prevailing. The Schemes also reserve the right
to invest in newer investment products subject to approval of the Trustee Company and in compliance with the
applicable SEBI Regulations.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as
                                                                                                                     58
secondary market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The
Mutual Fund under each Scheme may invest in non-publicly offered debt securities (including convertible securities).
The portion of each Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, the general level of stock prices, interest rates and other relevant considerations, including the risks
associated with each investment. The Scheme will, in order to reduce the risks associated with any one security,
utilise a variety of investments, performance will depend on the Asset Management Company's ability to assess
accurately and react to changing market conditions.
Not more than 5% of the net assets of each Scheme may be invested in equity and equity-related securities that are
not listed on any stock exchange (including the OTCEI). Any such investments will only be m              ade if the Asset
Management Company believes that such securities may be listed within a two-year period. This policy, however, is
not applicable to each Scheme's acquisition of equity and equity-related securities in initial public offerings that at the
time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial
public offering will be so listed. The Mutual Fund under each Scheme, will not invest more than 10% of its net assets
in the debt (including non publicly offered debt securities) and money market securities of any one issuer excluding
call money.
Upto 5% of the net assets of each scheme may be invested in unlisted equity and equity-related securities as stated
in the previous paragraph. Fu rther, since a significant section of the debt market consists of non-publicly offered debt
securities, each Scheme could invest upto 20% of its net assets (i.e. its entire allocation to debt and money market
securities) in non-publicly offered debt securities. In the event investments made in unlisted equity and equity-related
securities and non-publicly offered debt securities affect the ability of each Scheme to make redemption payments
within the stipulated time frame set forth herein then redemption payments will be made in accordance with section
7.8, Right to Limit Redemptions. In addition, the Trustee has the right, in its sole discretion, to limit redemptions
under certain circumstances, see section 7.8, Right to limit Redemptions.
5.7 BIRLA SUN LIF E EQUITY FUND

The investment objective of the Scheme is to generate long term growth of capital. The Scheme will, under normal
market conditions, invest approximately 90% of its net assets in equity and equity related securities, with the balance
10% being invested in fixed income securities, money market instruments, cash and cash equivalents, though these
percentages may vary. The following table provides the asset allocation of the Scheme's portfolio.

 Portfolio Asset Allocation Target            Allocation
                          Allocat ion          Range
 Equity & Equity Related         90%         80% - 100%
 Debt & Money Market             10%           0% - 20%

The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance
them within 30 days to conform to the above limits.
For purposes of this Offer Document equity securities include debt securities convertible into shares and rights or
warrants to purchase shares. Fixed-income and money market securities includes but is not limited to Treasury bills,
Government of India securities, corporate debt, state and government-guaranteed bonds, public sector bonds,
convertible securities, commercial paper, certificates of deposit, discounted trade bills, asset-backed securities,
financial institution and banking sector bonds and call money. The Scheme reserves the right to invest its entire
allocation to debt in any one of the debt security classes stated herein. For instance the entire allocation to debt, if
any, may be invested in asset-backed securities. Investments in debt and money market instruments will be made in
securities rated as investment grade by at least one recognised rating agency. Investments in unrated securities will
be made with the prior approval of the Boards of Directors of the Trustee Company and the Asset Management
Company or a committee thereof. From time to time it is possible that the portfolio may hold cash.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as
secondary market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The
Mutual Fund under this Scheme may invest in non-publicly offered debt securities (including convertible securities).
The investments may have tenors that could be short-term (i.e. less than one year) or long-term (i.e. greater than
one year). The Scheme reserves the right to invest in newer investment products including foreign securities (i.e.
offshore investments) subject to approval of the Trustee Company and in compliance with the applicable SEBI
Regulations.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, the general level of stock prices, interest rates and other relevant considerations, including the risks
associated with each investment. The Scheme will, in order to reduce the risks associated with any one security,


                                                                                                                        59
utilize a variety of investments and performance will depend on the Asset Management Company's ability to assess
accurately and react to changing market conditions.
Not more than 5% of the net assets of the Scheme may be invested in equity and equity-related securities that are
not listed on any stock exchange (including the OTCEI). Any such investments will only be made if the Asset
Management Company believes that such securities may be listed within a two-year period. This policy, however, is
not applicable to the Scheme's acquisition of equity and equity-related securities in initial public offerings that at the
time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial
public offering will be so listed. The Mutual Fund under this Scheme, will not invest more than 10% of its net assets in
the debt (including non-publicly offered debt securities) and money market securities of any one issuer excluding call
money.
Upto 5% of the Scheme’s net assets may be invested in unlisted equity and equity-related securities as stated in the
previous paragraph. Further, since a significant section of the debt market consists of non-publicly offered debt
securities, the Scheme could invest upto 20% of its net assets (i.e. its entire allocation to d ebt and money market
securities) in non-publicly offered debt securities. In the event investments made in unlisted equity and equity-related
securities and non-publicly offered debt securities affect the ability of the Scheme to make redemption payments
within the stipulated time frame set forth herein then redemption payments will be made in accordance with section
7.8, Right to Limit Redemptions. In addition, the Trustee has the right, in its sole discretion, to limit redemptions
under certain circumstan ces, see section 7.8, Right to limit Redemptions.

5.8 BIRLA SUN LIFE TA X R E L I E F ' 9 6
The investment objective of the Scheme is to generate long term growth of capital. The Scheme will, under normal
market conditions, invest approximately 80% of its net assets in equity and equity related securities, with the balance
20% being invested in fixed income securities, money market instruments, cash and cash equivalents, though these
percentages may vary. The following table provides the asset allocation of the Scheme's portfolio.

 Portfolio Asset Allocation Target           Allocation
                           Allocation          Range
 Equity & Equity Related         80%        80% - 100%
 Debt & Money Market             20%         0% - 20%

The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance
them within 30 days to conform to the above limits.
For purposes of this Offer Document equity securities include debt securities convertible into shares and rights or
warrants to purchase shares. Fixed-income and money market securities includes but is not limited to Treasury bills,
Government of India securities, corporate debt, state and government-guaranteed bonds, public sector bonds,
convertible securities, commercial paper, certificates of deposit, discounted trade bills, asset-backed securit ies,
financial institution and banking sector bonds and call money. The Scheme reserves the right to invest its entire
allocation to debt in any one of the debt security classes stated herein. For instance the entire allocation to debt, if
any, may be inve sted in asset-backed securities. Investments in debt and money market instruments will be made in
securities rated as investment grade by at least one recognised rating agency. Investments in unrated securities will
be made with the prior approval of the Boards of Directors of the Trustee Company and the Asset Management
Company or a committee thereof. From time to time it is possible that the portfolio may hold cash. The Scheme may
also enter into repurchase and reverse repurchase obligations in all securities held by it as per the guidelines and
regulations applicable to such transactions. Further the Scheme intends to participate in securities lending as
permitted under the SEBI (MF) Regulations, 1996.
Investments may be made in listed or unlisted instruments. Securities may be listed on any of the recognised Indian
stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as secondary
market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The Mutual Fund
under this Scheme may invest in non-publicly offered debt securities (including convertible securities). The
investments may have tenors that could be short-term (i.e. less than one year) or long-term (i.e. greater than one
year). The Scheme reserves the right to invest in newer investment products including foreign securities (i.e. offshore
investments) subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, the general level of stock prices, interest rates and other relevant considerations, including the risks
                                                       i
associated with each investment. The Scheme will, n order to reduce the risks associated with any one security,
utilize a variety of investments and performance will depend on the Asset Management Company's ability to assess
accurately and react to changing market conditions.
Not more than 5% of the net a  ssets of the Scheme may be invested in equity and equity-related securities that are
not listed on any stock exchange (including the OTCEI). Any such investments will only be made if the Asset
                                                                                                                       60
Management Company believes that such securities may be listed within a two-year period. This policy, however, is
not applicable to the Scheme's acquisition of equity and equity related securities in initial public offerings that at the
time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial
public offering will be so listed. The Mutual Fund under this Scheme, will not invest more than 10% of its net assets in
the debt (including non publicly offered debt securities) and money market securities of any one issuer excluding call
money.
Upto 5% of the Scheme’s net assets may be invested in unlisted equity and equity-related securities as stated in the
previous paragraph. Further, since a significant section of the debt market consists of non-publicly offered debt
securities, the Scheme could invest upto 20% of its net assets (i.e. its entire allocation to debt and money market
securities) in non-publicly offered debt securities. In the event investments made in unlisted equity and equity-related
securities and non-publicly offered debt securities affect the ability of the Scheme to make redemption payments
within the stipulated time frame set forth herein then redemption payments will be made in accordance with section
7.8, Right to Limit Redemptions. In addition, the Trustee has the right, in its sole discretion, to limit redemptions
under certain circumstances, see section 7.8, Right to limit Redemptions.
5.9     T H E B I R L A S U N L IFE '95 FUND
                                                                                  f
The investment objectives of the Scheme are to generate long term growth o capital and current income from a
portfolio of equity and fixed-income securities. The Scheme will, under normal market conditions, invest
approximately 60% of its net assets in equity and equity related instruments, with the balance 40% being invested in
fixed income securities, money market instruments, cash and cash equivalents, though these percentages may vary.
The Fund Manager will review the portfolio for adherence with the asset allocation patterns and rebalance them
within 30 days to conform to the limits indicated below. The following table provides the asset allocation of the
Scheme's portfolio.

 Portfolio Asset Allocation Target            Allocation
                           Allocation          Range
 Equity & Equity Related         60%          50%-75%
 Debt & Money Market             40%          25%-50%
The portfolio asset a llocation policy indicated above is consistent with the policy that the Scheme has followed since
inception and which has been disclosed to Unitholders through the Mutual Fund's newsletter.
Under normal market conditions the Scheme attempts to achieve long-term growth of capital by investing in common
stock and other equity-type instruments. It will try to achieve a competitive level of current income and capital
appreciation through investments in debt securities and a high level of current income through investments in money
market instruments.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with            economic
conditions, the general level of stock prices, interest rates and other relevant considerations, including       the risks
associated with each investment. The Scheme will, in order to reduce the risks associated with any one           security,
utilize a variety of investments and performance will depend on the Asset Management Company's ability          to assess
accurately and react to changing market conditions.
For purposes of this Offer Document equity securities include debt securities convertible into shares and rights or
warrants to purchase shares. Fixed-income and money market securities includes but is not limited to Treasury bills,
Government of India securities, corporate debt, state and government-guaranteed bonds, public sector bonds,
convertible securities, commercial paper, certificates of deposit, discounted trade bills, asset-backed securities,
financial institution and banking sector bonds and call money. Investments in debt and money market instruments will
be made in securities rated as investment grade by at least one recognised rating agency. Investments in unrated
securities will be made with the prior approval of the Boards of Directors of the Trustee Company and the Asset
Management Company or a committee thereof. From time to time it is possible that the portfolio may hold cash.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the Over-the-Counter Exchange of India
("OTCEI"). Investments may be made as secondary market purchases, initial public offers, private placements,
negotiated investments, rights offers, etc. The Mutual Fund under this Scheme may invest in non-publicly offered debt
securities (including convertible securities). The investments may have tenors that could be short-term (i.e. less than
one year) or long-term (i.e. greater than one year). The Scheme reserves the right to invest in newer investment
products including foreign securities (i.e. offshore investments) subject to approval of the Trustee Company and in
compliance with the applicable SEBI Regulations.
Not more than 5% of the net assets of the Scheme may be invested in equity and equity-related securities that are
not listed on any stock exchange (including the OTCEI). Any such investments will only be made if the Asset
Management Company believes that such securities may be listed within a two-year period. This policy, however, is
not applicable to the Scheme's acquisition of equity and equity related securities in initial public offerings that at the
                                                                                                                       61
time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial
public offering will be so listed. The Mutual Fund under this Scheme, will not invest more than 10% of its net assets in
the debt (including non publicly offered debt securities) and money market securities of any one issuer excluding call
money.
Upto 5% of the Scheme's net assets may be invested in unlisted equity and equity-related securities as stated in the
previous paragraph. Further, since a significant section of the debt market consists of non-publicly offered debt
securities, the Scheme could invest upto 25% of its net assets in non publicly offered debt securities. In the event
investments made in unlisted equity and equity-related securities and non-publicly offered debt securities af fect the
ability of the Scheme to make redemption payments within the stipulated time frame set forth herein then redemption
payments will be made in accordance with section 7.8, Right to Limit Redemptions. In addition, the Trustee has
the right, in its sole discretion, to limit redemptions under certain circumstances, see section 7.8, Right to limit
Redemptions.
5.10    BIRLA SUN LIFE FRONTLINE EQUITY FUND
5.10.1 Investment Objectives & Policies
The primary investment objective of the Scheme is to generate long term growth of capital and the secondary
objective is income generation and distribution of dividend. The Scheme will, under normal market conditions,
attempt to remain fully invested in the equity markets while focusing on its investment theme.
5.10.2 Investment theme
The Scheme will aim at being as diversified across various industries and / or sectors as its chosen benchmark index.
It will target the same sectoral weights within its equity portfolio as the benchmark index on a designated day subject
to some predetermined flexibility. However, the Scheme shall have the flexibility of selecting stocks within a particular
sector from a wider investment universe. So while the equity component of the Scheme's portfolio will track sectoral
weights of the chosen benchmark index, the stocks making up those sectoral weights in the Scheme's portfolio could
be different from those comprising the relevant sectoral weights in the index. However, such stocks will be from the
same sectors although they may differ from the index constituents on account of the Scheme's investment universe
being wider than index stocks.
The sectoral weights will be computed by aggregating market values of individual stocks sectorwise, as a percentage
of the total market value of the equity component in the Scheme's portfolio. The Scheme will have the flexibility of
varying the sectoral weights by ± 25% of the sectoral weights in the index on the designated day, or by an absolute
figure of ± 3%, whichever is higher. For example, if the sect or weight in the index on the designated day is 15%, the
± 25% rule will apply and the Scheme will maintain a weight between 11.25% and 18.75%. For a sector comprising
10% of the index, the Scheme could have an exposure of between 7% - 13% to that sector in the equity component
in its portfolio since in this situation, the ± 3% rule will become applicable. This implies that sectors with less than 3%
weights in the index on the designated day may be ignored. The Scheme's equity portfolio will attain the sect oral
diversification of the index on the designated day computed in the above manner, by the month-end after the
designated day. The Scheme may invest up to 25% of its net assets in cash, government securities, debt and money
market instruments. This limit may not be exceeded for a continuous period of 30 days without the approval of /
ratification by the Trustee.
The Scheme has currently chosen BSE 200 as its benchmark index. The designated day shall be the 23rd of every
month. If 23rd is a non-Business Day, the immediately preceding Business Day shall be the designated day for that
month. The equity portfolio of the Scheme will match the sectoral diversification of the benchmark index on the
                                                                 i
designated day, by the last calendar day of each month or if it s a non-Business Day, by the first Business Day of the
next month. The Scheme will typically attain the sectoral weights of the benchmark index by the last Business Day of
each month.
The Scheme's investment universe shall comprise all listed and / or unlisted stocks. The Scheme will endeavour to
invest in 'frontline' stocks i.e. stocks which in the opinion of its Fund Manager, provide superior growth opportunities.
The stocks will be categorised into the sectors making up the benchmark index by the Trustee.
5.10.3 Benchmark Index
BSE 200 : The BSE 200 is a broad -based index which reflects the present market trends effectively and provides a
better representation of the increased equity stocks, market capitalisation as also the newly emerged industry groups.
It was launched on May 27, 1994.
The equity shares of 200 selected companies have been considered for inclusion in the BSE-200. The selection of
companies is primarily on the basis of current market capitalisation of the listed scrips on The Stock Exchange,
Mumbai. Besides market capitalisation, the market activity of the companies as reflected by the volumes of turnover
and certain fundamental factors have also been considered by the Exchange while selecting the 200 companies. The
constituents of sectors included in BSE 200 are updated based on market capitialisation of the companies and the list
of the constituents of BSE 200 can be obtained from the web site - www.bseindia.com.


                                                                                                                        62
The Exchange has chosen financial year 1989-90 as the base year on account of inter-alia the price stability exhibited
during that year.
The Trustee reserves the right to change the benchmark index and the designated day for reckoning
sectoral weights of the index in the future depending upon changing investor preferences and market
developments.
5.10.4 Asset Allocation Pattern
The following table provides an indicative asset allocation of the Scheme's portfolio.

 Portfolio Asset Allocation Target               Allocation
                           Allocation             Range
 Equity & Equity Related           100%         75% - 100%
 Debt & Money Markets               0%           0% - 25%

The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance
within 30 days to conform to the above limits.
For purposes of this Offer Document equity securities include debt securities convertible into shares and rights or
warrants to purchase shares. Fixed-income and money market securities include but are not limited to Treasury bills,
Government of India securities, corporate debt, state and government-guaranteed bonds, public sector bonds,
convertible securities, commercial paper, certificates of deposit, discounted trade bills, asset-backed securities,
financial institution and banking sector bonds and call money. The Scheme reserves the right to invest its entire
                        ny
allocation to debt in a one of the debt security classes stated herein. For instance, the entire allocation to debt, if
any, may be invested in asset-backed securities. Investments in debt and money market instruments will be made in
securities rated as investment grade by at least one recognised rating agency. Investments in unrated securities will
be made with the prior approval of the Boards of Directors of the Trustee Company and the Asset Management
Company or a committee thereof. From time to time it is possible that the portfolio may hold cash.
Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised
Indian stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as
secondary market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The
Mutual Fund under this Scheme may invest in non-publicly offered debt securities (including convertible securities).
The investments may have tenors that could be short-term (i.e. less than one year) or long-term (i.e. greater than
one year). The government securities the scheme may invest in could be supported by the ability to borrow from the
Treasury, supported only by sovereign guarantee or that of the State government or could be supported by the
Government of India/State government in some way. The Scheme reserves the right to invest in newer investment
products subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations.
The portion of the Scheme's portfolio invested in each type of security will vary in accordance with economic
conditions, the general level of stock prices, interest rates and other relevant considerations, including the risks
associated with each investment. The Scheme will, in order to reduce the risks associated with any one security,
utilize a variety of investments and performance will depend on the Asset Management Company's ability to assess
accurately and react to changing market conditions.
Not more than 5% of the net assets of the Scheme may be invested in equity and equity-related securities that are
not listed on any stock exchange (including the OTCEI). Any such investments will only be made if the Asset
Management Company believes that such securities may be listed within a two-year period. This policy, however, is
not applicable to the Scheme's acquisition of equity and equity related securities in initial public offerings that at the
time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial
public offering will be so listed. The Mutual Fund under this Scheme, will not invest more than 10% of its net assets in
the debt (including non-publicly offered debt securities) and money market securities of any one issuer excluding call
money.
Up to 5% of the Scheme's net assets may be invested in unlisted equity and equity-related securities as stated in the
previous paragraph. Further, since a significant section of the debt market consists of non-publicly offered debt
securities, the Scheme could invest up to 25% of its net assets (i.e. its entire allocation to debt and money market
securities) in non-publicly offered debt securities. In the event investments made in unlisted equity and equity-related
securities and non-publicly offered debt securities affect the ability of the Scheme to make redemption payments
within the stipulated time frame set forth herein then redemption payments will be made in accordance with section
7.8, Right to Limit Redemptions. In addition, the Trustee has the right, in its sole discretion, to limit redemptions
under certain circumstances, see section 7.8, Right to limit Redemptions.
5.11 Derivatives Trading




                                                                                                                       63
SEBI has permitted Mutual Funds to participate in derivatives trading subject to observance of guidelines issued by it
in this behalf. Accordingly, Mutual Funds may use various derivative products from time to time, as would be available
and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders' interest.
The scheme intends to use derivatives instruments like options on stocks and stock indices, interest rate swaps,
forward rate agreements or such other derivative instruments as may be introduced from time to time for the purpose
of hedging, portfolio balancing and other permitted usages as provided under the regulations and guidelines . The
value of derivative contracts outstanding will be limited to 50% of net assets of the scheme.

RBI has permitted Mutual Funds to participate in Interest Rate Swaps and Forward Rate Agreements. SEBI has also
permitted trading of interest rate derivatives through stock exchanges. The scheme may also trade in these
instruments.
Interest Rate Swaps (IRS)
An IRS is an agreement between two parties to exchange stated interest obligations for an agreed period in respect of
a notional principal amount. The most common form is a fixed to floating rate swap where one party receives a fixed
(pre-determined) rate of interest while other receives a floating (variable) rate of interest.
Forward Rate Agreement (FRA)
An FRA is basically a forward starting IRS. It is an agreement between two parties to pay or receive the difference
between an agreed fixed rate (the FRA rate) and the interest rate (reference rate) prevailing on a stipulated future
date, based on a notional principal amount for an agreed period. The only cash flow is the difference between the
FRA rate and the reference rate. As is the case with IRS, the notional amounts are not exchanged in FRAs.


5.11.1 Trading in derivatives in debt component of the portfolios of BSLIF, BSLGSF, BSLCM, BSLMI and
BSLSTF
The Debt Schemes viz. BIRLA SUN LIFE Income Fund (BSLIF), Birla Sun Life Government Securities Fund (BSLGSF),
Birla Sun Life Cash Manager (BSLCM), Birla Sun Life Monthly Income (BSLMI) and Birla Sun Life Short Term Fund
(BSLSTF) may participate in derivatives trading within their debt portfolios in accordance with guidelines issued under
SEBI (MF) Regulations from time to time.
An example of a derivatives transaction (an interest rate swap) is given below.
Basic Structure of a Swap
X has a 6 month Rs. 5 crore liability which is currently being deployed in overnight "call" money markets. Y has a Rs.
5 crore 6 month asset which is being funded through call. Both X and Y are running an interest rate risk. To hedge
this interest rate risk, they can enter into a 6 month MIBOR (Mumbai Inter Bank Offered Rate) swap. Through this
swap X will receive a fixed preagreed rate (say 12%) and pay NSE MIBOR ("the benchmark rate"). His paying at "call"
on the benchmark rate will neutralize the interest rate risk of lending in call. Y will pay 12% and receive interest at
the benchmark rate. His receiving of interest on the benchmark rate will neutralize his interest rate risk arising from
his call borrowing.
The mechanism is as follows :
     Assume the swap is for Rs.5 crore 1 March, 2006 to 1 September, 2006. X is a fixed rate receiver at 12% and Y is
     a floating rate receiver at the overnight compounded rate.
     On 1 March, 2006 X and Y will exchange only an agreement of having entered this swap. This documentation
     would be as per International Securities Dealers Association (ISDA).
     On a daily basis, the benchmark rate fixed by NSE will be tracked by them.
     On 1 September, 2000 they will calculate the following :
         X is entitled to receive interest on Rs.5 crore at 12% i.e. Rs.30.25 lakh, (this amount is known at the time the
         swap was concluded) and will pay the compounded benchmark rate.
         Y is entitled to receive daily compounded call rate for 184 days and pay 12% fixed.
     On 1 September, 2006, if the total interest on the daily overnight compounded benchmark rate is higher than
     Rs.30.25 lakhs, X will pay Y the difference. If the daily compounded benchmark rate is lower, then Y will pay the
     difference.
Risks associated with Derivatives Trading
a) Credit Risk : The credit risk is the risk that the counterparty will default on its obligations and is generally
    negligible as there is no exchange of principal amounts in a derivative transaction.
b) Market risk : Derivatives carry the risk of adverse changes in the market price.
c)   Liquidity risk : The risk that a derivative cannot be sold or purchased quickly enough at a fair price, due to lack
     of liquidity in the market.
                                                                                                                         64
d) The risk is to the extent that returns are limited for the investor in case of extreme movement in call rates.
e) Derivatives transaction involves payment of benchmark rate (viz. NSE MIBOR in the above example). In practice
   however there can be a difference in the actual rate at which money is lent in the call market and the benchmark
   which is used.
It may be mentioned here that the guidelines issued by Reserve Bank of India from time to time for forward rate
agreements and interest rate swaps and other derivatives products may require to be adhered to. The mutual fund
may utilise up to 100% of the Scheme's net assets for trading in derivatives.
Advantage to the Schemes from derivative transactions
1.   A mutual fund holding floating rate assets (i.e. in call or call linked products) can lock into higher rates on the
     entire or part of the floating rate asset portfolio, without compromising significantly on liquidity, through a swap
     whereby a floating rate of interest is paid to the counterparty and a fixed rate of interest is received from him.
2.   A mutual fund holding fixed rate assets (e.g. Government Securities/Corporate bonds) can, if it feels rates will
     trend upwards, execute its view through swaps, without liquidating the bonds. This can be d one by entering into
     a swap deal in which the mutual fund pays fixed interest rates and receives floating interest rates. The fund is
     thus able to hedge out fully or partly the interest rate risk.
The example pertains to an interest rate swap, a derivative which is currently permitted to be used. The Scheme(s)
would be allowed to enter into derivative contracts of all other types such as credit swaps etc. as and when they are
permitted.
5.11.2 Trading in derivatives in the equity component of the Schemes BS L '95, BSLEF, BSLCTR, BSLSS,
BSLMI and BSLFEF
The Schemes viz. The Birla Sun Life '95 (BSLLL '95), Birla Sun Life Capital Tax Relief'96 (BSLCTR), Birla Sun Life
Monthly Income (BSLMI), Birla Sun Life Equity Fund (BSLEF), Birla Sun Life Buy India Fund (BSLBI), Birla Sun Life
Basic Industries Fund (BSLBAS), Birla Sun Life New Millennium Fund (BSLNM) and Birla Sun Life Frontline Equity Fund
(BSLFEF) also intend to participate in derivatives trading within the equity component of their portfolios.
The Schemes may use derivatives instruments such as Stock Index Futures, Options on indices or such other
derivative instruments as may be introduced / permitted, from time to time. To illustrate, an example of a Stock Index
Future is given below :
Basic Structure of an Equity Derivative Instrument:
A Stock Index Future
The Stock Index Future is an instrument designed to give exposure to equity market indices. The Stock Exchange,
Mumbai and The National Stock Exchange have recently started trading in index futures of 1, 2 and 3 month
maturities. Pricing of an index future is a function of the underlying index and short term interest rates.
Assumptions:
1 month BSE 30 Future
Spot Index: 3800
Future Price on day 1 : 3820
Fund buys 10,000 futures
Future price = Closing spot price = 3850
Profits for the Fund = (3850 - 3820) x 10000 = Rs. 300,000
The net impact for the Scheme(s) will be in terms of the difference between the closing price of the index and cost
price (ignoring margins for the sake of simplicity). Thus, profit or loss for the Scheme(s) will be the difference
between the closing price (which can be higher or lower than the purchase price) and the purchase price.
Advantages of Equity Derivatives :
Volatility in the Indian equity markets has increased over the last few months. Derivatives provide much needed
flexibility to hedge against this volatility. Some of the advantages of specific derivatives products are given below:
l    Stock Index Futures can give exposure to the index. Appreciation in Index stocks can be effectively captured
     through investment in Stock Index Futures without buying individual stocks which make up the index.
l    The Scheme can sell futures to hedge against market movements without actually selling the underlying stocks it
     holds.
l    By buying call options on the index one can participate in the rise in the market, without actually buying individual
     stocks.
l    By buying put options on the index the Scheme can insulate the portfolio (assuming a perfect co-relation between
     portfolio and index - which may not be the case) from the downside risk at a small cost.

                                                                                                                       65
5.12 Investment in ADR and GDRs of Indian companies by BSL'95, BSLCTR, BSLEF, BSLSS and BSLFEF

                                                                                                            un
Birla Sun Life Equity Fund, The Birla Sun Life '95 Fund, Birla Sun Life New Millennium Fund, Birla S Life Basic
Industries Fund, Birla Sun Life Buy India Fund, Birla Sun Life Capital Tax Relief '96 and Birla Sun Life Frontline Equity
Fund are eligible to invest in ADR/GDRs.
American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) are s           ecurities representing ownership of
underlying stock in a certain ratio. These securities are denominated in a foreign currency (e.g. US Dollars etc.) and
are listed on a foreign stock exchange (NASDAQ, NYSE, London, Luxembourg etc.). These securities are issued in
order to tap investors in foreign capital markets who wish to invest in Indian companies but want to avoid the
currency, settlement and regulatory issues involved with investing in the Indian Stock Markets.
SEBI has currently allowed mutual funds registered with it, to invest in ADR/GDRs of Indian companies. This is subject
to a limit based on the net assets of the Mutual Fund in accordance with SEBI Guidelines issued from time to time,
with an overall cap of USD 100 million per fund.
The Mutual F  und intends to invest so as to work in the interest of unit holders. Investments in ADR / GDRs by these
Schemes would be made in accordance with their respective investment objectives and in accordance with approvals
received from the Reserve Bank of India (RBI) and SEBI. All investments made would be subject to terms and
conditions specified by the regulatory authorities.
The advantages of investing in ADR/GDRs of Indian companies are :
l  There is a significant trend of companies accessing the ADR/GDR markets rather than the local Indian market.
   This is because the valuations at which they can issue stock in these markets are higher due to the existence of
   deeper markets. It is felt that at many times these companies may offer attractive investment opportunities.
   However as these companies are not listed on the Indian Stock Exchanges, the Fund would not be able to profit
   by investing in these companies unless the Fund is allowed to invest in ADR/GDRs.
l  In many cases, newly offered ADRs/GDRs are priced attractively and it might be more attractive to hold the
   ADRs/GDRs of a company rather than shares of the same company in India.
l  Investing in ADRs and GDRs allows diversification across currencies by allowing the fund to gain exposure to
   currencies other than Indian Rupees.
5.13 Investment in foreign debt securities by BSLIF, BSLCM, BSLMI and BSLSTF
The Finance Minister of India has allowed mutual funds to invest in rated debt securities in countries with fully
convertible currencies. Accordingly SEBI has come out with the following guidelines:
Mutual Funds can now invest in foreign debt securities in countries with fully convertible currencies; in short term as
well as long term debt instruments with highest rating (foreign currency credit rating) by accredited/registered credit
rating agencies say A-1/AAA by Standard & Poor, P-1/AAA by Moody's, F1/AAA by Fitch IBCA, etc. They may also
invest in government securities where the countries are AAA rated.
Each mutual fund is permitted to invest in foreign securities up to a limit based on the net assets on the date
designated by SEBI subject to a maximum of US$ 100 million dollars.
Accordingly, the Scheme(s) intend to invest in foreign debt securities. Investments will be made in the manner and to
the extent permitted by SEBI Regulations, as amended from time to time.
Investment avenues for these schemes would include:
l   Sovereign papers issued by AAA rated countries like United States of America, United Kingdom, etc.
l   Supra-National Bonds : These are bonds (debt instruments) issued by development financial institutions like the
    World Bank, Asian Development Bank, International Finance Corporation, the European Bank for Reconstruction
    and Development, etc..
l   Bonds (debt instruments) issued by United States (US) Agencies. US Agencies are companies or associations
    founded by a Charter from the US Federal Government. These agencies have been established to finance
    activities like home ownership, farming, education, etc. These issuers are able to borrow at favourable rates due
    to their government sponsored status.
l   AAA rated corporates from developed countries like GE Capital Corporation, American International Group, etc.
Advantages offered to the investor and thereby resulting in furthering of investment objectives of the
respective schemes are:
l   Foreign investments have the potential to offer a superior risk return equation given the normal trend in the
    Indian Rupee - US Dollar exchange rate.
l   Given the limited number of AAA/AA+ companies in India, this investment avenue increases the universe of
    investment options.


                                                                                                                          66
l   By investing in securities of different countries, interest rate risks can be diversified and relatively favourable
    interest rate moves in different countries can be taken advantage of.
Risks involved in investments in foreign debt are:
l   Interest rate risk: Investments will be subject to interest rates movements in the countries where such
    investments are made. By investing across countries, this risk can be diversified and mitigated to a certain extent.
    Further, interest rate risk can also be reduced by going in for interest rate swaps (a type of fixed income
    derivative), which will convert a fixed rate of interest on a foreign debt security to a floating rate (typically the six
    month Libor - London Interbank Offered Rate).
l   Currency risk: Since investments will be made in instruments which will be denominated in a foreign currency,
    the movement in the value of that currency vis a vis the Indian Rupee will have an impact on returns. This risk
    can be hedged out by going in for currency or asset swaps which convert all cash flows from a security
    denominated in foreign currency, into Indian Rupees at predetermined rates.
l   Liquidity risk: In general, debt markets of developed countries are much more liquid than the Indian debt
    markets, with narrower bid-ask spreads and a significant number of market players. Therefore the liquidity risk in
    these investments is generally lower than the liquidity risk in domestic investments. There may however be some
    liquidity risk associated with the underlying currency swaps. This risk is lower if investments are of short to
    medium tenors, where the number of market players in the currency swap markets are more and hence the bid-
    ask spreads are quite narrow.
l   Credit risk: Negligible, given the fact that mutual funds can only invest in debt instruments, with highest foreign
    currency credit rating or in government securities of AAA rated countries.
Investment made shall be consistent with the investment objectives of the Schemes. The Trustee will take reasonable
steps to ensure that the AMC possesses adequate expertise and infrastructure for making such investments. The
investments shall be in accordance with the Trustee approval and in compliance with SEBI and other regulatory
guidelines and permissions, as applicable. Other prudent guidelines issued by SEBI will also be adhered to.
The maximum exposure of a Scheme to foreign debt investments shall be 25% of the Scheme's net assets subject to
the overall cap as specified by SEBI. The 25% limit per Scheme will be monitored and adhered to in the same manner
in which the mutual fund complies with various investment restrictions laid down in Schedule VII to the SEBI (Mutual
Funds) Regulations unless specified otherwise by the Regulator(s).
5.14 General and Scheme Specific Risk Factors
Investing in the Schemes involves certain risks and considerations associated generally with making investments in
                                                                                        i
securities. Past performance of mutual funds managed by the Sponsor and its affiliates s not necessarily indicative of
future performance of the Schemes. There can be no assurance that the Schemes will achieve their objectives.
Liquidity of the Schemes' investments may be restricted by trading volumes and settlement periods. Different
segments of the Indian financial markets have settlement periods ranging from one day to seven days, and such
periods may be extended significantly by unforeseen circumstances (see section 7.8, Right to Limit
Redemptions).
The risks generally associated with investments in securities are discussed herein and are common to the schemes of
Birla Mutual Fund. These risks include but are not restricted to the following:


5.14.1 Risks Associated With Investing in the Fixed Income and Money Markets
l   Interest Rate Risk: As with all debt securities, changes in interest rates will affect the Scheme's Net Asset Value
    as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise.
    Prices of longer-term securities generally fluctuate more in response to interest rate changes than do shorter-term
    securities. Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large
                                                                               nd
    price movements up or down in debt and money market securities a thereby to possibly large movements in
    the NAV.
l   Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near its true
    value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a
    dealer. Liquidity risk is characteristic of the Indian fixed income market.
l   Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed income security may default (i.e.,
    will be unable to make timely principal and interest payments on the security). Because of this risk debentures are
    sold at a yield spread above those offered on Treasury securities which are sovereign obligations and generally
    considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon
    the actual changes in the perceived level of credit risk as well as the actual event of default. This risk exists in
    assets issued by all entities other than the Government of India.



                                                                                                                         67
l    Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in
     the Scheme or from maturities in the Scheme are reinvested. The additional income from reinvestment is the
     "interest on interest" component. The risk is that the rate at which interim cash flows can be reinvested will fall.
The above are some of the common risks associated with investments in fixed and money market securities including
derivatives. There can be no assurance that a Scheme's investment objectives will be achieved, or that there will be
no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis.
For the Scheme Birla Sun Life Monthly Income Scheme, monthly income is not assured and is subject to
availability of distributable surplus.
5.14.2 Risks Associated With Investing in the Equity Market
The value of the Schemes' investments may be affected by factors affecting capital markets generally, such as price
and volume volatility in the stock markets, interest rates, currency exchange rates, foreign investment, changes in
government policy, political, economic or other developments and closure of the stock exchanges. Consequently, the
Net Asset Value of the Schemes may fluctuate, and the value of the Schemes' units may go up or down.
Investment made in unlisted equity or equity-related securities may only be realisable upon listing of these securities.
For Birla Sun Life Buy India Fund
1.   Change in Tax rates/structure : Most companies in this universe are in                high/highest corporate tax brackets.
     Moreover, India being a price sensitive market, any change in excise structure        would impact selling price, demand
     and/or company margins. Also, increases in personal taxes correspondingly             reduce disposable income, thereby
     reducing consumption. Hence any modification to existing tax rate or                   structure would impact business
     performance.
2.   Government Regulation : The universe is exposed to various regulatory issues such as DPCO, IPR, 100%
     subsidiary allowance (in case of MNCs), Royalty payments, Indian sourcing and relevant tariffs. The manner and
     extent of allowance/disallowance of all the above would have a bearing on company strategy and business focus.
3.   Political Uncertainty : The universe is to a great extent dependent on strong consumer spending, to be able to
     deliver strong performance. Political uncertainty creates a weaker consumer environment, as individuals defer
     purchases until discerning a more secure, stable environment (often referred to as the "feel good factor").
4.   Competition from spurious/smuggled goods : This has become a problem of increasing magnitude in recent
     times. However, individual companies are well aware of such practices, and have sensitised regulatory authorities
     to the same.


For Birla Sun Life New Millennium Fund
1. Loss of Key Professionals : In technology industries the ability to recruit and retain professionals with the
    necessary technical skills can be crucial to the ongoing success of the organisation. Qualified IT professionals are
    a limited resource and there is a worldwide demand for professionals from the Indian sub-continent. Failure to be
    able to retain key professionals can negatively impact the prospects of a company.
2.   Failure to adapt business to the rapid technological change : Companies in the IT industry may be
     adversely affected by rapid technological changes, product innovations and obsolescence, changing standards and
     client preferences. All or one of these issues may impact the business prospects of a company.
3.   Changes to Tax Benefits in India : The Government of India has given the information technology sector
     favourable tax benefits. If these tax benefits are removed or amended then it is possible that the changes may
     have a material adverse impact on a company's revenue and earnings.
4.   Exchange Rates : A number of companies in the technology sector generate revenue in foreign currencies and
     may even have investments or expenses denominated in foreign currencies. Changes in exchange rates may
     therefore have a positive or negative impact on a company's bottom line.
For Birla Sun Life Basic Industries Fund
1. Political Uncertainty : Political uncertainty impacts infrastructure spending of both the government and the
    private sector thereby impacting the demand for commodities. Besides, consumers tend to defer purchases and
    investment decisions in times of political uncertainty further impacting demand.
2.   Downtrend in International Commodity Prices : With the continuous lowering of custom tariffs (as per the
     requirement of the WTO), the Indian industry is now getting increasingly integrated with global markets. Any
     downturn in international prices of commodities will impact the domestic pricing environment and therefore the
     profitability of companies in these sectors.
3.   Poor monsoon : The performance of the Indian economy is closely related to the performance of the monsoon.
     It directly impacts agricultural production and therefore rural incomes which is an important determinant of
     consumer demand. Industrial growth is also therefore indirectly dependent on the monsoon.

                                                                                                                            68
Further, as and when a 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 analyses different from those associated with stocks and bonds. The use of a
derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without the
benefit of observing the performance of the derivative under all possible market conditions. 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 the
possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to
as the "counterparty") 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.
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 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 Sponsors will not be liable to make good or otherwise be responsible for any loss or shortfall resulting from
operations of the Schemes, beyond the initial contribution of Rs. 1 lakh made by them to the corpus of the mutual
fund.
Investors are advised to study the terms of offer carefully before investing in the Schemes, and to retain this offer
document for future reference. Updates to this Offer Document are available as Addenda posted on the website of the
AMC.
5.14.3 Minimum number of investors and minimum holding by single investor:
   As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No. 10/22701/03, each scheme and individual
   plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more
   than 25% of the corpus of such scheme/plan(s). In case of non-fulfillment with either of the above two conditions
   in a three months time period or the end of succeeding calendar quarter, whichever is earlier, from the close of
   the New Fund Offer (NFO) or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound
   up by following the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV.

   SEBI has, vide its Circular No. SEBI/IMD/CIR No.1/42529/05 dated June 14, 2005, further clarified that the
   foresaid Circular would be applicable at the Portfolio level. For determining the holding by single investor above
   25% limit, the average of daily holding by each such investor over the quarter would be considered. If the holding
   by such investor exceeds 25% limit over the quarter, rebalancing period of one month would be allowed and
   thereafter 15 days notice shall be given to the investor to redeem his exposure over the 25% limit within 15 days.
   In case, if the investor fails to redeem his exposure over 25%, it would lead to automatic redemption by the
   Mutual Fund on the applicable NAV on the 15th day of the notice period.
5.15 AMC investment in Birla Sun Life Cash Manager
The AMC may invest in units of Birla Sun Life Cash Manager (BSLCM), an open-end scheme short term debt scheme
launched by it, on an on going basis up to such limits as may be prescribed by SEBI from time to time. As per current
regulations, the AMC cannot charge fees on its investment in ACM. If permitted in future, the AMC may charge fees
on such investments up to the limits prescribed by SEBI.
5.16 Temporary Defensive Measures
Notwithstanding the foregoing investment policies for each of the schemes described herein, for temporary defensive
purposes (e.g., during periods in which the Asset Management Company believes changes in the securities markets or
economic or other conditions warrant), the schemes may invest in Indian Government T-Bills and hold cash or cash
equivalents and other money market instruments. The Trustee of the Mutual fund may from time to time alter these
                                                                         nd
limitations in conformity with the SEBI (Mutual Funds) Regulations, 1996 a any other guidelines or notifications that
may be issued by SEBI.


5.17 Investment decisions



                                                                                                                        69
The investment policies of the schemes of are decided by the investment committee which presently comprises of the
CEO, AMC Director, Head of Equities and Head of Fixed Income and Vice President (Asia) of Sun Life. The committee
has put in place detailed investment guidelines defining the prudential and concentration limits for the portfolio. The
investment management team is allowed full discretion to make sale and purchase decisions within the limits
established. The responsibility for the investment decisions is with the portfolio managers and the CEO of the AMC
does not have any role in the day to day decision making process. All the decisions will be recorded alongwith their
justifications. The performance of the scheme will be reviewed by the AMC and Trustee in their Board meetings. The
performance would be compared with the performance of the benchmark index and with peer group in the industry.

5.18 Investment Limitations pursuant to Seventh Schedule
All investments by the Scheme and the Mutual Fund, will always be within the investment restrictions as specified in
the SEBI Regulations. Pursuant to the Regulations, the following investment and other restrictions are presently
applicable to the scheme:
•       The 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 authorised to carry out such activity under the SEBI
Act, 1992. Such investment limit may be extended to 20% of the NAV of the Scheme with the prior approval of the
Board of Trustees and the Board of the AMC. Provided that, such limit shall not be applicable for investments in
government securit ies and money market instruments. Provided further that investment within such limit can be made
in mortgage backed securitised debt which are rated not below investment grade by a credit rating agency registered
with SEBI.
•         The scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer
and the total investment in such instruments shall not exceed 25% of the NAV of the Scheme. All such investments
shall be made with the prior approval of the Board of Trustees and the Board of the AMC or a Committee constituted
in this behalf.
•       Transfer of investments from one scheme to another scheme in the Mutual Fund is permitted provided:
         -        Such transfers are done at the prevailing market price for quoted instruments on spot basis (spot
basis shall have the same meaning as specified by a Stock Exchange for spot transactions); and
        -        The securities so transferred shall be in conformity with the investment objective of the Scheme to
which such transfer has been made.
•       The scheme may invest in other schemes under the same AMC or any other Mutual Fund without charging
any fees, provided the aggregate inter-scheme investment made by all the Schemes under the same management or
in schemes under management of any other Asset Management Company shall not exceed 5% of the Net Asset Value
of the Fund. No investment management fees shall be charged for investing in other schemes of the fund or in the
schemes of any other Mutual Fund.
•       The initial issue expenses in respect of any scheme may not exceed 6% of the funds raised under that
scheme.
•       The 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 a long-term nature.
•                          uy
          The fund may b 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 will not make any short sales or engage in carry
forward transaction or badla finance. Provided that the Mutual Fund shall enter into derivative transactions on a
recognised stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines
issued by SEBI.
•      Pending deployment of funds of a Scheme in securities in terms of the investment objectives of the Scheme,
the AMC can invest the funds of the Scheme in short term deposits of scheduled commercial banks or in call deposits.
•       The scheme shall not make any investment in:
        -        Any unlisted security of an associate or group company of the Sponsor; or
        -        Any security issued by way of private placement by an associate or group company of the Sponsor; or
         -      The listed securities of group companies of the Sponsor, which is in excess of 25% of the net assets
of the Scheme of the Mutual Fund.
•       The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of
repurchase / redemption of Units or payment of interest and dividend to the Unitholders.
Provided that the Fund shall not borrow more than 20% of the net assets of any individual Scheme and the duration
of the borrowing shall not exceed a period of 6 months.



                                                                                                                         70
•        The entire Scheme’s investments will be in transferable securities (whether in capital markets or money
markets) or in privately placed debentures or securitised debt, or bank deposits (pending deployment in securities in
line with the investment objectives of the scheme) or in money at call.
•         Debentures, irrespective of any residual maturity period (above or below 1 year), shall attract the investment
restrictions as applicable for debt instruments as specified under Clause 1 and 1A of the Seventh Schedule to the
Regulations or as may be specified by SEBI from time to time.
•       No loans for any purpose shall be advanced by the Scheme.
•       The Fund may lend securities in accordance with the stock lending scheme of SEBI.
•       The Scheme shall not invest in a fund of funds scheme.
•        The Scheme will comply with any other regulations applicable to the investments of mutual funds from time
to time.
The Trustees may alter the above restrictions from time to time to the extent that changes in the Regulations may
allow and as deemed fit in the general interest of the unit holders.
These investment restrictions shall in the ordinary course apply as at the date of the most recent transaction or
commitment to invest, and changes do not have to be effected merely because, owing to appreciations or
depreciations in value, or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any
schemes of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or
other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded
for reasons beyond its control, BSLAMC shall as soon as possible take appropriate corrective action, taking into
account the interests of the Unitholders.
In addition, certain investment parameters (like limits on exposure to Sectors, Industries, Companies, etc.) may be
adopted internally by BSLAMC, and amended from time to time, to ensure appropriate diversification / security for the
Fund. The Trustee Company / BSLAMC may alter these above stated limitations from time to time, and also to the
extent the SEBI (Mutual Funds) Regulations, 1996 change, so as to permit the Schemes to make its investments in
the full s pectrum of permitted investments for Mutual Fundss to achieve its investment objective. As such all
investments of the Schemes will be made in accordance with SEBI (Mutual Funds) Regulations, 1996, including
Schedule VII thereof.

5.19 Fundamental Attributes
Notwithstanding the above, when any change in the fundamental attributes of the Schemes or the Trust or fees and
expenses payable or any other change which would modify the Schemes or affects the interest of the Unitholders, is
proposed to be carried out, the Trustees shall ensure that such changes are made on fulfillment of parameters laid
down by SEBI (Mutual Funds) Regulations, 1996.
For the purposes of this section, as per the current Regulations, “Fundamental Attributes” of the schemes shall mean:
•   Type of scheme i.e. Open ended schemes
•   Investment Objectives & Policies
•   Terms of Issue:
Sale and Redemption of units as defined in Section named ‘“Units and Offer” of this Offer Document. Fees and
expenses as specified in the Section named “Loads and Recurring Expenses” of this Offer Document/ as permitted by
the Regulations.
Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board of Directors of the
Asset Management Company, made in order to conduct the business of the Trust, the Scheme or the Asset
Management Company, where such business is in the nature of discharging the duties and responsibilities with which
they have been charged. Nor will it include changes to the Scheme made in order to comply with changes in
regulation with which the Scheme has been required to comply.
In accordance with Regulation 18(15A) of the SEBI Regulations, the Trustees shall ensure that no change in the
fundamental attributes of the scheme and the Plan / Options thereunder or the trust or fee and expenses payable or
any other change which would modify the scheme and the Plan / Options thereunder and affect the interests of unit
holders 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 unit holders are given an option to exit at the prevailing Net Asset Value without any exit load.

                                                                                                                        71
Unitholders are requested to note that no prior intimation/indication shall be given to the investors when there is a
change in the composition/asset allocation pattern under the scheme.

5.20 Portfolio Turnover
The scheme has no explicit constraints either to maintain or limit the portfolio turnover. Portfolio turnover will depend
upon the circumstances prevalent at any time and would also depend on the extent of volatility in the market and
inflows/outflows in the scheme. The Fund Manager will however endeavour to maintain a low portfolio turnover rate.

                           l
5.21 Borrowing by the Mutua Fund
In accordance with the SEBI (MF) Regulations, 1996 the Mutual Fund may borrow up to an amount equal to 20% of
the net assets of the Scheme for the purpose of meeting temporary liquidity needs due to repurchase or redemption
of Units or payment of interest or dividend to the Unitholders. Any such borrowing by the Mutual Fund shall be for a
period not exceeding six months. The Mutual Fund shall not advance any loans for any purpose. The risk to
Unitholders arising out of borrowing is that borrowing cost may be higher than the portfolio yield.

5.22 Underwriting by the Scheme
Subject to SEBI Regulations, the Scheme may enter into underwriting agreements after the Mutual Fund obtains a
certificate of registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and Securities
and Exchange Board of India (Underwriters) Regulations, 1993 authorising it to carry on activities as underwriters.
The capital adequacy norms for the purpose of underwriting shall be the net assets of the respective Plans and the
underwriting obligation of the respective Plans shall not at any time exceed the total net asset value of the respective
Plans.

5.23 Inter-Scheme Transfers
The Schemes shall carry out inter-scheme transfer of investments in accordance with SEBI (MF) Regulations.
Currently the regulations stipulate that inter-scheme transfers may be done provided:
(a) such transfers are done at the prevailing market price for quoted instruments on spot basis; where "spot basis"
    shall have the 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 has been made.
The Schemes may enter into inter-scheme transfers to meet redemption requirements. Liquidity will be managed by
selling inter-scheme when other schemes have investible funds and the AMC believes that the investments are good
investments to retain. Inter-scheme transfers may be resorted to for bringing the Scheme port folios in line with their
respective target allocation. At times inter-scheme transfers may be done to generate distributable surplus by
converting unrealised profits into booked profits.
5.24    Stock Lending
Subject to the Regulations and the applicable guidelines issued by SEBI from time to time, the Trustee may permit the
Fund to engage in stock lending. The Fund can temporarily lend stocks held with the Custodian to reputed
counterparties, for a fee, subject to prudent limits and controls for enhancing re turns. The Fund is allowed to lend
securities subject to a maximum of 25%, in aggregate, of the net assets of each scheme and 5% in the case of a
single intermediary
5.25 Unclaimed Redemption and Dividend Amounts
The unclaimed redemption amount and dividend amounts may be deployed by the Mutual Fund in call money market
or money market instruments only and the investors who claim these amounts during a period of three years from the
due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred
to a pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income
earned on such funds will be used for the purpose of investor education. The AMC will make a continuous effort to
remind the investors through letters to take their unclaimed amounts. Further, the investment management fee
charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.
5.26 Transactions with Associates
Business given to associates of BSLAMC and Payments made to sponsor and its associates during the last 3 financial
years and from April 1, 2006 to September 30, 2006 is given below:


                                      April 1, 2006- 2005 -06                2004-05            2003 -0 4
                                      September 30,
Name                                  2006

                                                                                                                            72
Birla Sun Life Distribution Co. Ltd.    3402290.76          29,045,647,51   45,870,325.14     2,144,713.04

Birla Global Finance        Ltd. (since 15875397.76         3,533,688.21    11,106,737.84     14,275,449.08
merged with Aditya          Birla Nuvo
Ltd.)


Investments in Group companies of BSLAMC


BSLA MC does not have any separate policy for investment in securities of the group companies. If at any time such
investments are made, it will be done on pure commercial consideration for the benefit of the Fund. No investment
will be made in any unlisted security of an associate or group company of the Sponsor and in any security issued by
way of private placement by an associate or group company of the Sponsor. Further, investments in listed securities
of the group company of the Sponsor will not exceed 25% of the net assets of each scheme of the Fund. Investment
in group companies will be done only in the interest of the Fund and as per the SEBI Regulations.
As on September 30, 2006 investments made in the securities of Group Companies of the sponsor stood as follows:

                                                                 Security                           % of Net
         Scheme                Name of the Security              Category       Amount              Assets
                                                                              (Rs. in Lacs)     of the Scheme

Birla Advantage Fund         Grasim Industries Ltd.       Equity                   907.07      1.90

Birla Balance Fund           Aditya Birla N uvo Limited   Equity                   173.66      1.38

Birla Bond Plus              Aditya Birla Nuvo Limited    Debt                   5,167.38      9.98

Birla Infrastructure Fund    Grasim Industries Ltd.       Equity                 1,948.45      3.42

                             Hindalco Industries Ltd.     Equity                   271.50      0.48

                             Ultra Tech Cement Ltd        Equity                   450.03      0.79
Birla Sun Life Basic
Industries Fund              Grasim Industries Ltd.       Equity                   511.49      2.80

                             Hindalco Industries Ltd.     Equity                   317.00      1.73
Birla Sun Life Buy India
Fund                         Aditya Birla Nuvo Limited    Equity                   538.00      3.73
Birla Sunlife Equity
Fund                         Grasim Industries Ltd.       Equity                 1,100.94      2.71

                             Hindalco Industries Ltd.     Equity                   393.37      0.97
Birla Sun Life Frontline
Equity Fund                  Ultra Tech Cement Ltd        Equity                   427.75      4.07
Birla Sun Life Tax Relief
'96                          Aditya Birla Nuvo Limited    Equity                   124.68      4.96

                             Grasim Industries Ltd.       Equity                   118.42      4.71

Birla Top 100 Fund           Grasim Industries Ltd.       Equity                 1,184.24      2.06

Birla Cash Plus              Aditya Birla Nuvo Limited    Debt                   5,217.68      0.83
India Excel (Offshore)
Fund                         Grasim Industries Ltd.       Equity                 1,688.17      2.00
Birla Fixed Term Debt -
Sr 3 36 Month                Hindalco Industries Ltd.     Debt                       24.35     10.12
India Advantage
(Offshore) Fund              Grasim Industries Ltd.       Equity                 1,058.25      1.71

Birla Midcap Fund            Aditya Birla Nuvo Limited    Equity                   402.97      2.53
                             Ultra Tech Cement Ltd        Equity                   387.12

                                                                                                                  73
                                                                                              2.43

Birla Mip                 H indalco Industries Ltd.   Debt                      974.10        4.73
 Birla Mip Wealth 25
Plan                      Hindalco Industries Ltd.    Debt                      462.70        4.97

Birla Income Plus         Aditya Birla Nuvo Limited   Debt                    1,399.22        5.41

                          Hindalco Industries Ltd.    Debt                    1,344.68        5.20

Birla Tax Plan 98         Aditya Birla Nuvo Limited   Equity                     34.73        4.98

                          Grasim Industries Ltd.      Equity                     42.83        6.14

Birla Equity Plan         Aditya Birla Nuvo Limited   Equity                    303.91        3.38

                          Grasim Industries Ltd.      Equity                    453.54        5.05

Birla Index Fund          Grasim Industries Ltd.      Equity                       3.61       1.01

                          Hindalco Industries Ltd.    Equity                              3.11 0.87
The above investments constitute 1.70% of the total net assets of the Fund as on September 30, 2006. The above
investments were considered sound. Before making an investment, the AMC evaluated the same on merits and on
arm’s length basis and in accordance with the objective of the scheme.
Business dealings / transactions with associates of BSLAMC
BSLAMC utlises the services of Birla Sun Life Distribution Company Ltd., and Birla Global Finance Ltd. (since merged
with Aditya Birla Nuvo Ltd.) for marketing and distribution of the units of various schemes.
The AMC may utilise the services of Sponsor, group companies and any other subsidiary or associate company of the
Sponsor established or to be established a later date, in case such a company (including their employees or relatives)
in a position to provide the requisite services to the AMC. The AMC will conduct its business with the aforesaid
companies (including their employees or relatives) on commercial terms and on arms-length basis and at mutually
agreed terms and conditions to the extent permitted under the SEBI Regulations, after evaluation of the
competitiveness of the pricing offered by the Sponsor, associate companies (including their employees or relatives)
and the services to be provided by them.
Underwriting Obligations with respect to issues of Associate Companies -
The AMC has, till date not entered into any Underwriting contracts in respect of any public issue made by any of its
associate companies.

Subscription in issues lead managed by the Sponsor or any of its associates-
Details of subscription in issues where Birla Global Finance Lim ited (since merged with Aditya Birla Nuvo Ltd.) the
sponsor was the arranger:


Name of the            Security Description                                                 Amount in Rs
Scheme
BIRLA CASH PLUS        6.50% PUNJAB TRACTORS LTD. (01-OCT-2003)                             200,000,000.00
BIRLA CASH PLUS        6.75% SWARAJ ENGINES LTD. (29-SEP-2003)                               50,000,000.00
BIRLA CASH PLUS        6.15% SWARAJ ENGINES (01-AUG-2003)                                    50,000,000.00
BIRLA CASH PLUS        6.15% SWARAJ ENGINES LTD. (21-AUG-2003)                               50,000,000.00
BIRLA CASH PLUS        SUN PHARMA - MIBOR+15BPS (15-SEP-2003)                               100,000,000.00
BIRLA BOND PLUS        SUN PHARMA - MIBOR+15BPS (15-SEP-2003)                               100,000,000.00
BIRLA CASH PLUS        SUN PHARMA - MIBOR+15BPS (16-SEP-2003)                               300,000,000.00
BIRLA CASH PLUS        CENTURY TEXTILES - MIBOR+10BPS (11-NOV-2003)                          50,000,000.00
BIRLA CASH PLUS        5.50% SWARAJ ENGINES LTD (19-NOV-2003)                                50,000,000.00
BIRLA CASH PLUS        CENTURY TEXTILES - MIBOR+10BPS (21-NOV-2003)                         100,000,000.00
BIRLA INCOME PLUS      CENTURY TEXTILES - MIBOR+10BPS (21-NOV-2003)                         100,000,000.00
BIRLA CASH PLUS        5.7% SWARAJ ENGINES NCD (19 DEC. 2003)                                50,000,000.00
BIRLA CASH PLUS        5.7% SWARAJ ENGINES NCD (26 DEC. 2003)                                50,000,000.00
BIRLA CASH PLUS        NSEMIBOR plus10bps Century Text 89dys NCD Red29Mar04                 150,000,000.00
                       PHYLOA
                                                                                                                   74
BIRLA CASH PLUS         NSEMibor plus10bps Cent Text 89dysUnsec NCDRed 6Apr04          50,000,000.00
                        PHYLOA
BIRLA CASH PLUS         4.98pc Punjab Tractors 72Days UnsecNCD Red25Mar04DMTLOA        150,000,000.00
BIRLA FLOATING RATE     1yrGSEC 130bpsResetSemiAnnuIDBI OMNI                           100,000,000.00
FUND - SHORT TERM       Bonds2004DRed9Mar09DMT
PLAN
BIRLA CASH PLUS         5.65pcGarden Silk Mill UnsecUnrtd63DaysNCD Red29Jun04DMTLOA    150,000,000.00
BIRLA BOND PLUS         NM Plus5Bp Indian Oiltanking 89DaysNCD Red 26Jul2004 Phy Loa    50,000,000.00
BIRLA CASH PLUS         NM Plus 5 BpsCentText ltd 89Days SecNcd Red 28Jul04 PHY LOA    200,000,000.00
BIRLA CASH PLUS         5.65pc Swaraj Engines 89Days UnsecNCD Red28Jul04 PHYLOA         50,000,000.00
BIRLA CASH PLUS         5.65pcGarden Silk Mill UnsecUnrtd48DaysNCD Red28Jun04DMTLOA    100,000,000.00
BIRLA CASH PLUS         NM Plus 0 BpsCentText ltd 88Days SecNcd Red 20Aug04 PHY LOA    200,000,000.00
BIRLA CASH PLUS         NM Plus0Bps IndianOiltanking 87DaysNCD Red 20Aug2004 Phy Loa    50,000,000.00
BIRLA CASH PLUS         5.65pc Swaraj Mazda Ltd 78 Days Unsec NCD Red 29Sep04 PhyLoa    50,000,000.00
BIRLA CASH PLUS         NSE MIBOR Cent Tex and Ind 87Days SecNCD Red11Oct04PHYLOA      100,000,000.00
BIRLA CASH PLUS         5.65pc Swaraj Engines Urtd Unsec 89DaysNCD Red13Oct04DmtLOA     50,000,000.00
BIRLA CASH PLUS         NM 0Bps IndianOiltanking 88DaysNCD Red 22Oct2004 Phy Loa        50,000,000.00
BIRLA CASH PLUS         NM plus 0bps Century Textiles 89Days Sec NCDRed25Oct04PHYLOA   200,000,000.00
BIRLA CASH PLUS         5.65pc Swaraj Engines Urtd Unsec 60DaysNCD Red28Sep04DmtLOA     50,000,000.00
BIRLA CASH PLUS         6pc Swaraj Mazda Ltd 85 Days Unsec NCD Red 10Nov04 PHYLOA       50,000,000.00
BIRLA SUN LIFE          4.90pc Punjab Tractors 89Days UnsecNCD Red30Nov04DMTLOA        100,000,000.00
TRUSTEE COMPANY
PVT LIMITED A/C BIRLA
FIXED MATURITY PLAN-
QUARTERLY SERIES 2
BIRLA CASH PLUS         NMplus 0bps Century Text 89Days SecNCD Red 1Dec04 PHYLOA               450,000,000.00
BIRLA CASH PLUS         5.65pc Swaraj Engines Urtd Unsec NCD Red 3 Dec 04 Dmt LOA               50,000,000.00
BIRLA CASH PLUS         5.75pc Swaraj Mazda Ltd 84 Days Unsec NCD Red 22Dec04 PHYLOA            50,000,000.00
BIRLA DYNAMIC BOND      NM Cent Tex and Ind 89Days SecNCD Red27Dec04PHYLOA                     200,000,000.00
FUND
BIRLA CASH PLUS         5.75pc Swaraj Eng 84Days UnrtdUnsecNCD Red24Dec04 DMTLOA                50,000,000.00
BIRLA CASH PLUS         5.90pc Swaraj Eng 76Days UnrtdUnsecNCD Red 30Dec04 DMTLOA               50,000,000.00
BIRLA FLOATING RATE     NM plus10bps Cent Tex and Ind 89Days SecNCDRed                         200,000,000.00
FUND - SHORT TERM       2Feb05PHYLOA
PLAN
BIRLA FLOATING RATE     NM plus10bps Cent Tex and Ind 88Days SecNCDRed 4Feb05PhyLoa            200,000,000.00
FUND - SHORT TERM
PLAN
BIRLA CASH PLUS         6.40pc Swaraj Mazda Ltd 84 Days UnsecNCD Red 2Feb2005                   50,000,000.00
                        PHYLOA
BIRLA CASH PLUS         NM plus 0bps Century Text. 87Days Secu NCD Red11Mar05 PHYLOA           200,000,000.00
BIRLA FLOATING RATE     NM plus 0bps Century Text. 87Days Secu NCD Red11Mar05 PHYLOA           200,000,000.00
FUND - SHORT TERM
PLAN
BIRLA FLOATING RATE     NSE Mibor Century Text. 86Days Secu NCD Red18Mar05 PHYLOA              100,000,000.00
FUND - LONG TERM
PLAN
BIRLA FLOATING RATE     NSE Mibor Century Text. 86Days Secu NCD Red18Mar05 PHYLOA              100,000,000.00
FUND - SHORT TERM
PLAN
BIRLA CASH PLUS         6.50pc Swaraj Eng 82Days UnrtdUnsecNCD Red 15Mar05 PHYLOA               50,000,000.00
BIRLA FLOATING RATE     NM plus15bps Century Text. 89Days Secu NCD Red29Mar05                  200,000,000.00
FUND - SHORT TERM       PHYLOA
PLAN
BIRLA CASH PLUS         6.40pc Swaraj Eng 77Days UnrtdUnsecNCD Red 24Mar05 DMTLOA               50,000,000.00
BIRLA CASH PLUS         6.40pc Swaraj Eng 63Days UnrtdUnsecN CD Red 10Mar05 DMTLOA              50,000,000.00
BIRLA CASH PLUS         NM plus 5bps ACC Ltd 83Days Sec NCD Red 31Mar05 PHYLOA                 150,000,000.00
BIRLA CASH PLUS         NM plus 5bps Century Text 87Days Secu NCD Red15Apr05 PHYLOA            200,000,000.00
BIRLA CASH PLUS                          zda
                        6.60pc Swaraj Ma Ltd 89Days UnsecNCD Red 20Jun2005                     100,000,000.00
                        PHYLOA
BIRLA CASH PLUS         NMPlus20bps MothersonSumi Unsec30Days NCD Red 13May05                   50,000,000.00

                                                                                                                75
                         PhyLoa
BIRLA CASH PLUS          6.50pc Swaraj Eng 80Days UnrtdUnsecNCD Red 8Jul05 DMTLOA               50,000,000.00
BIRLA CASH PLUS          6.5pc Swaraj Eng 87Days UnrtdUnsecNCD Red 15Jul05 DMTLOA               50,000,000.00
BIRLA CASH PLUS          NM plus 30bps Century Text 89Days Secu NCD Red 4Oct05 PHYLOA          300,000,000.00
BIRLA CASH PLUS          6.45pc Swaraj MazdaLtd 71Days                                         100,000,000.00
                         UnsecUnratedNCDRed29Sep2005PH Y
BIRLA CASH PLUS          NM plus 25bps Century Text 84Days Secu NCD Red28Oct05 PHYLOA          200,000,000.00
BIRLA CASH PLUS          6.40pc Swaraj Eng 89Days UnrtdUnsecNCD Red 8Nov05 PHYLOA               50,000,000.00
BIRLA CASH PLUS          6.40pc Swaraj Eng 80Days UnrtdUn secNCD Red 8Dec05 PHYLOA              50,000,000.00
BIRLA CASH PLUS          6.40pc Swaraj MazdaLtd 86Days                                          50,000,000.00
                         UnsecUnratedNCDRed14Dec2005PHY
BIRLA CASH PLUS          6.6pc Swaraj MazdaLtd 71Days                                          100,000,000.00
                         UnsecUnratedNCDRed30Dec2005PHY
BIRLA FLOATING RATE      5.90pc Punjab Tractors 45Days UnsecNCD Red9Dec05 DMT LOA              250,000,000.00
FU ND - SHORT TERM
PLAN
BIRLA CASH PLUS          6.75pc Swaraj MazdaLtd 48Days                                          50,000,000.00
                         UnsecUnratedNCDRed29Dec2005PHY
BIRLA CASH PLUS          7pc Swaraj Eng 88Days UnrtdUnsecNCD Red 7Mar2006 PHYLOA                50,000,000.00
BIRLA CASH PLUS          6.50pc Punjab Tractors 84Days UnsecNCD Red3Mar2006 DMTLOA             250,000,000.00
BIRLA CASH PLUS          6.50pc Punjab Tractors UnsecNCD DOA10Jan06 Red24Mar06                 200,000,000.00
                         DMTLOA
BIRLA CASH PLUS          NM plus30bps Century Text NCD DOA 20Jan06 Red19Apr06 LOA              100,000,000.00
                         PHY
BIRLA CASH PLUS          7.9pc Swaraj Mazda Ltd UnsNCD DOA7Feb06 Red 24Mar06 PHYLOA             50,000,000.00
BIRLA CASH PLUS          NM plus 20bps Finoex Cables 87DaysUnsecNCDRed13Jul06                  200,000,000.00
                         PHYLOA
6.BMF SCHEMES' FEATURES AND INFORMA TION RELATING TO THE U N I T S O N
OFFER
DEBT SCHEMES
6.1 BIRLA SUN LIFE MONTHLY INCOME

(Monthly income is not assured and is subject to availability if distributable surplus.)
Birla Sun Life Monthly Income (BSLMI) was launched on June 25, 1    999. The initial offer period for the scheme closed
on July 14, 1999. BSLMI has been open for ongoing sales and redemptions since August 10, 1999. Minimum amount
for initial investment whether by way of a purchase or switch-in is Rs. 25,000/- under monthly and quarterly dividend
plans and Rs. 5000/- under growth plan. Additional purchases or switch-ins should be atleast Rs. 5,000/- under
monthly and quarterly dividend plans and 1,000/- under growth plan.
6.1.1 Investment Plans (i.e. Unit Classes)
Birla Sun Life Monthly Income offers investors three investment plans, (i) Monthly Dividend Plan, (ii) Quarterly
Dividend Plan and (iii) Growth Plan. Unitholders in the Monthly and Quarterly Dividend Plans of the Schemes will have
an option to reinvest their dividend. Birla Sun Life Monthly Income - Growth Plan will make no dividend distributions.
Investors are requested to indicate their preference while investing in the Scheme. If an investor in Birla Sun Life
Monthly Income fails to specify his plan, it would be a             ssumed that he has opted to elect the Growth
Plan. If an investor in Birla Sun Life Monthly Income fails to specify his option under Monthly Dividend
& Quarterly Dividend Plans, it would be assumed that he has opted to elect the Dividend Reinvestment
option. The Scheme intends to make regular monthly and quarterly dividend payments to investors of record in the
Monthly and Quarterly Dividend Plans. The record date for purpose of declaration of dividend for units under Monthly
Dividend Plan will be the last Business Day of each month. See section 10, Dividends.
6.2 BIRLA SUN LIFE INCOME FUND

BSLIF was launched on February 11, 1997. The initial offer period for the Scheme ended on March 3, 1997. The
Scheme has been open for ongoing sales and redemptions since March 27, 1997. Minimum amount for initial
investment whether by way of a purchase or switch-in is Rs. 5,000/-. Additional purchases or switch-ins should be
atleast Rs. 1,000/- in value.
6.2.1 Investment Plans (i.e. Unit Classes)
The Scheme offers investors three investment plans, (i) Growth Plan (ii) Half-yearly Dividend Plan; and (iii) Quarterly
Dividend Plan. Unitholders in the Half -yearly and Quarterly Dividend Plans of the Schemes will have an option to
reinvest their dividend. Investors are requested to tick the appropriate box on the Application Form indicating their
                                                                                                                    76
preference. If an investor in Birla Sun Life Income fund fails to specify his preference, it would be
assumed that he has opted to elect the Dividend Reinvestment Plan.
6.2.2 Growth Plan
Investors who would prefer capital appreciation can opt for the Growth Plan. The Scheme will not declare dividends
under the Growth Plan. Unitholders who opt for this Plan will not receive any income from the Scheme. Instead the
income earned on their units will remain invested within the Scheme and will be reflected in the Net Asset Value.
6.2.3 Half-yearly Dividend Plan
Investors who wish to receive regular income in the form of dividends, half -yearly, can opt for the Half-yearly
Dividend Plan. Under this Plan the Trustee intends to declare six-monthly dividends. Unitholders may elect to reinvest
their Dividend in additional units of the scheme.
6.2.4 Quarterly Dividend Plan
Investors who wish to receive regular income in the form of dividends, quarterly, can opt for the Quarterly Dividend
Plan. Under this Plan the Trustee intends to declare quarterly dividends. Unitholders may elect to reinvest their
Dividend in additional units of the scheme.
6.3 BIRLA SUN LIFE GO V E R N M E N T S E C U R I T I E S FUND

BSLGSF was lau nched on October 15, 1999 and the initial offer closed on October 28, 1999. The scheme reopened for
ongoing sales and redemption on November 5, 1999. Minimum amount for initial investment whether by way of a
purchase or switch-in is Rs. 5,000/-. Additional purchases or switch-ins should be atleast Rs. 1,000/- in value.
6.3.1 Investment Plans (i.e. Unit Classes)
The Scheme offers investors two investment plans, (i) Short Term Plan and (ii) Long Term Plan. The investment plans
are managed as separate investment portfolios. Each investment plan will offer both a growth and a dividend option.
In other words, there will be two separate investment portfolios each with two net asset values (i.e. one for the
growth option another for the dividend option). All four NAVs will be calculated for each Business Day. For Unitholders
who choose the dividend option in either plan there is the option to reinvest the dividend. The growth option in either
plan will make no dividend distributions. In case the investor fails to sp ecify his preference for an investment
plan / options, it would be assumed that the investor has opted to elect the Growth Option. The face
value of one unit under each Unit Class shall be Rs. 10/-.
6.3.2 Short Term Plan
This investment plan is suitable for investors whose investment holding period is expected to be from three months
to one year. The Short Term Plan portfolio will be managed so that the maximum rupee weighted duration of the
portfolio will be no longer than three years. The plan will offer both a growth and a dividend option. The Plan
intends to make quarterly dividend payments to investors in the dividend option. Quarterly dividend payments will be
made for the quarters ending March, June, September and December, see section 10, Dividends.
6.3.3 Long Term Plan
This investment plan is suitable for investors whose investment holding period is expected to be greater than one
year. The Long Term Plan portfolio will be managed so that the maximum rupee weighted duration of the portfolio
will be no longer than seven years. The plan will offer both a growth and a dividend option. This Plan intends to
make six-monthly dividend payments to investors in the dividend option. Six-monthly dividend payments will be made
for the half-years ending March and September, see section 10, Dividends.

6.4 BIRLA SUN LIFE CASH MANAGER

BSLCM was launched on May 12, 1998. The initial offer period for the Scheme ended on May 14, 1998. BSLCM has
been open for ongoing sales and redemptions since May 18, 1998.
Minimum Subscription
Minimum amount for initial investment whether by way of a purchase or switch-in is Rs. 10,000/- for growth and
dividend plans. Additional purchases or switch-ins for growth and dividend plans should be atleast 1,000/- in value.
                        i
Minimum amount for nitial investment whether by way of a purchase or switch-in is Rs. 10,000,000/- for institutional
plan. Additional purchases or switch-ins for institutional plan should be atleast 1,00,000/- in value. The face value of
one unit under all the plans of the scheme shall be Rs. 10/-.
6.4.1 Investment Plan (i.e. Unit Classes) :
The Scheme offers investors three investment plans, (i) Growth (ii) Dividend and (iii) Institutional. See Section 6.4.3
for details of Institutional Plan. In case an investor fails to spe  cify his preference, he shall be deemed to
have opted the Dividend Plan. The Scheme intends to declare weekly dividends in the Dividend Plan on each
Wednesday. If Wednesday is not a Business Day, dividend would be declared on the next Business Day. Dividends
when declared shall be compulsorily reinvested in the Scheme.
6.4.2 Institutional Plan


                                                                                                                     77
An Institutional Plan was launched under Birla Sun Life Cash Manager on April 16, 2003. The face value of each unit
under this Plan is Rs. 10/-. Investments in Instit utional Plan shall be entitled to a lower recurring expense ratio set out
under BSLCM - IP in Section 1.3 BMF - Annual Recurring Expenses (As % of Average Daily Net Assets). The
Plan offers three investment options, (i) Growth (ii) Weekly Dividend (iii) Daily Dividend. In case an investor in this
Plan fails to specify his preference, he shall be deemed to have opted to elect the Daily Dividend Option.
The Plan intends to declare weekly dividends in the Weekly Dividend Option on each Wednesday. If Wednesday is not
a Business Day, dividend would be declared on the next Business Day. Under the Daily Dividend Option, the Plan
intends to declare dividend each day on which Net Asset Value (NAV) is calculated for the Plan. Dividends when
declared shall be compulsorily reinvested.
Eligible investors (see Section 6.12 Who can apply for Units of BMF Schemes?) will need to make a positive
election every time they invest, for their investments to be categorised under the Institutional Plan. To invest in the
Institutional Plan, an eligible investor will have to make an initial investment whether through fresh purchase or
switch-in, of Rs. 1 crore or more. Subsequent investments in that folio where the said initial investment was directed,
whether by way of additional purchase or switch-in should be atleast Rs. 1,00,000/- in value. Amounts less than Rs. 1
crore cannot be invested in Institutional Plan under any other folio by such investor unless he has, or at any time in
the past had, Institutional Plan investment(s) in those folios.
6.5 BIRLA SUN LIFE SHORT TERM FUND

BSLSTF was launched on April 18, 2002. The initial offer period for the Scheme ended on April 19, 2002. BSLSTF
opened for ongoing sales and redemptions on April 25, 2002.
Minimum Subscription
Minimum amount for initial investment whether by way of a purchase or switch-in is Rs. 10,000/-. Additional
purchases or switch-ins should be atleast Rs. 1,000/- in value.
6.5.1 Investment Plan (i.e. Unit Classes)
The Scheme offers investors two investment plans, (i) Growth Plan (ii) Dividend Plan. In case an investor fails to
specify his preference, he shall be deemed to have opted to elect the Dividend Reinvestment Plan. The
Scheme intends to declare monthly dividends in the Dividend Plan on the last business day of each month. Dividends
when declared shall be compulsorily reinvested in the Scheme. The face value of one unit under each unit class shall
be Rs.10/-.
EQUITY SCHEMES
6.6 THE BIRLA SUN LIF E S E C T O R S E L E C T S E RI E S

                                 -
BSLSS, a family of three multi sector equity schemes, was launched on December 15, 1999. The initial offer closed on
January 15, 2000. The schemes under BSLSS, which are Birla Sun Life New Millennium Fund, Birla Sun Life Buy India
Fund and Birla Sun Life Basic Industries Fund, re-opened for ongoing subscription on February 28, 2000. Minimum
amount for initial investment whether by way of a purchase or switch-in is Rs. 5,000/-. Additional purchases or
switch-ins should be atleast Rs. 1,000/- in value.
6.6.1 Investment Plans (i.e. Unit Classes)
Each Scheme offers investors two investment plans, Growth Plan and Dividend Plan. Investors are requested to tick
the appropriate box on the Application Form indicating their preference. In case the investor fails to specify his
preference, it would be assumed that the investor has opted to elect the Dividend Reinvestment Plan.
6.6.2 Growth Plan
Investors who would prefer capital appreciation can opt for the Growth Plan. The Scheme will not declare dividends
                                                                   ot
under the Growth Plan. Unitholders who opt for this plan will n receive any income from the Scheme. Instead the
income earned on their Units will remain invested within the Scheme and will be reflected in the Net Asset Value.
6.6.3 Dividend Plan
Investors who wish to receive income in the form of dividends can opt for the Dividend Plan. Under this plan the
Trustee intends to declare annual dividends. Unitholders may elect to reinvest their Dividend in Additional units of the
scheme.

6.7 BIRLA SUN LIFE EQUITY FUND
The initial public offer of BSLEF took place between August 17, 1998 - August 27, 1998. BSLEF reopened for ongoing
sale and redemption effective September 21, 1998. Minimum amount for initial investment whether by way of a
purchase or switch-in is Rs. 5,000/-. Additional purchases or switch-ins should be atleast Rs. 1,000/- in value.




                                                                                                                         78
6.7.1 Investment Plans (i.e. Unit Classes)
The Scheme offers investors two investment plans. Investors are requested to tick the appropriate box on the
Application Form indicating their preference. In case the investor fails to specify his preference, it would be
assumed that the investor has opted to elect the Dividend Reinvestment Plan.
6.7.2 Growth Plan
Investors who would prefer capital appreciation can opt for the Growth Plan. The Scheme will not declare dividends
under the Growth Plan. Unitholders who opt for this plan will not receive any income from the Scheme. Instead the
income earned on their Units will remain invested within the Scheme and will be reflected in the Net Asset Value.
6.7.3 Dividend Plan
Investors who wish to receive income in the form of dividends can opt for the Dividend Plan. Under this plan the
Trustee intends to declare dividends on record dates announced by the Trustee from time to time. Unitholders may
elect to reinvest their Dividend in additional units of the scheme.
6.8 BIRLA SUN LIFE TA X R E L I E F ' 9 6

BSLTR’96, an Equity Linked Savings Scheme under Section 88 of the Income Tax Act, 1961, was launched in
December 30, 1995. The initial offer period for the scheme ended on March 31, 1996. After the 3 year lock-in period
elapsed, the scheme opened for repurchase on April 1, 1999. BSLTR’96 has been open for ongoing subscription from
July 1, 1999. Subscriptions as well as subsequent purchases / switch-ins shall be Rs. 500/- or multiples thereof.
6.8.1 Investment Plan (i.e. Unit Class)
The Scheme offers investors a single investment plan, a Growth Plan with tax saving option under Section 88 (3 year
lock-in). The investment objective of the Scheme is to provide immediate tax relief and long term growth of capital.
All income earned by the Scheme will accrue to the Net Asset Value of the Units of the Scheme. The Trustee reserves
the right to declare a dividend within the purview of the tax and other laws in force at that particular point in time.
Unitholders m ay redeem their Units, subject to terms of the lock-in, to realise the return on their investment.

6.9 BIRLA SUN LIFE '95 FUND

ALL '95 was launched on January 19, 1995. The initial offer period for the Scheme ended on February 11, 1995. BSL
'95 has been open for ongoing sales and redemptions since March 27, 1995. Minimum amount for initial investment
whether by way of a purchase or switch-in is Rs. 5,000/-. Additional purchases or switch-ins should be atleast Rs.
1,000/- in value.
6.9.1 Investment Plans (i. e. Unit Classes)
The Scheme offers investors two investment plans. Investors are requested to tick the appropriate box on the
Application Form indicating their preference. In case the investor fails to specify his preference, it would be
assumed that the investor has opted to elect the Dividend Reinvestment Plan.
6.9.2 Growth Plan
Investors who would prefer capital appreciation can opt for the Growth Plan. The Scheme will not declare dividends
under the Growth Plan. Unitholders who opt for this plan will not receive any income from the Scheme. Instead the
income earned on their Units will remain invested within the Scheme and will be reflected in the Net Asset Value.
6.9.3 Dividend Plan
Investors who wish to receive income in the form of dividends can opt for the Dividend Plan. Under this plan
dividends will be declared on record dates announced by the Trustee. Unitholders may elect to reinvest their Dividend
in additional units of the scheme.
6.10 BIRLA SUN LIFE FRONTLINE EQUITY FUND

BSLFEF was launched on August 12, 2002. The initial offer period for the Scheme ended on August 30, 2002. BSLFEF
has been open for ongoing sales and redemptions on September 27, 2002. Minimum amount for initial investment
whether by way of a purchase or switch-in is Rs. 5,000/-. Additional purchases or switch-ins should be atleast
Rs.1,000/- in value.
6.10.1 Investment Plans (i.e. Unit Classes)
The Scheme offers investors two investment plans, (i) a Growth Plan (ii) a Dividend Plan. Investors are requested to
tick the appropriate box on the Application Form indicating their preference. In case an investor fails to specify
his preference, he shall be deemed to have opted to elect the Dividend Reinvestment Plan.
6.10.2 Growth Plan
                                                          pt
Investors who would prefer capital appreciation can o for the Growth Plan. The Scheme will not declare dividends
under the Growth Plan. Unitholders who opt for this plan will not receive any income from the Scheme. Instead the
income earned on their Units will remain invested within the Scheme and will be reflected in the Net Asset Value.

                                                                                                                    79
6.10.3 Dividend Plan
Investors who wish to receive income in the form of dividends can opt for the Dividend Plan. Under this plan the
Trustee intends to make annual dividend distributions. Unitholders may elect to reinvest their Dividend in additional
units of the scheme.
6.11 Duration Of The Schemes/ Winding Up
Being open ended, all the Schemes have a perpetual life. However, in terms of the SEBI Regulations, the Scheme may
be wound up after repaying the amount due to the Unitholders:
•     on the happening of any event which, in the opinion of the Trustee, requires the Scheme to be wound up; or
•     if seventy five percent of the Unitholders of the Scheme pass a resolution that the Scheme be wound up; or
•     if SEBI directs the Scheme to be wound up in the interest of the Unitholders.
Where a Scheme is to be wound up pursuant to the above SEBI Regulations, the Trustee shall give notice of the
circumstances leading to the winding up of the Scheme:
1.    to SEBI; and
2.    in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating at the
place where the head office of the Mutual Fund is situated.
6.11.1     EFFECT OF WINDING UP
On and from the date of the publication of the notice as stated above, the Trustee or the AMC as the case maybe,
shall
(a)   cease to carry on any business activities in respect of the Scheme so wound up;
(b) cease to create or cancel Units in the Scheme;
(c) cease to issue or redeem Units in the Scheme.

6.11.2      PROCEDURE AND MAN          NER OF WINDING UP
1.    The Trustee shall call a meeting of the Unitholders of the Scheme to consider and pass necessary resolutions by
simple majority of Unitholders present and voting at the meeting for authorising the Trustee or any other person /
agency to take the steps for winding up of the Scheme provided that the meeting of unitholders shall not be
necessary if the scheme is wound up at the end of its maturity period.
(a)   The Trustee or the person authorised as above, shall dispose the assets of the Scheme concerned in the best
interests of the Unitholders of the Scheme.
(b) The proceeds of the sale made in pursuance of the above, shall in the first instance be utilised towards
discharge of such liabilities as are properly due under the Scheme and after making appropriate provision for meeting
the expenses connected with such winding up, the balance shall be paid to the Unitholders in proportion to their
respective interests in the assets of the Scheme as on the date when the decision for the winding up was
taken.
2.     On the completion of the winding up, the Trustee shall forward to SEBI and the Unitholders, a report on the
winding up containing particulars such as circumstances leading to the winding up, the steps taken for disposal of
assets of the Scheme before winding up, expenses of the Scheme for winding up, net assets available for distribution
to the Unitholders and a certificate from the Auditors of the Mutual Fund.
3.     Notwithstanding anything contained herein, the application of the provisions of the SEBI Regulations in respect
of disclosures of half-yearly reports and annual reports shall continue to be applicable until the winding up is
completed or the Scheme ceases to exist.
4.    After the receipt of the report on the winding up referred to the above, if SEBI is satisfied that all measures for
winding up of the Scheme have been complied with, the Scheme shall cease to exist.
6.12 Who can apply for Units of BMF Schemes ?
Applications for Units can be made by any investor or group of investors qualified or authorised to purchase the Units
in accordance with the procedures described herein including, but not limited to the following:
(i) Adult individuals (or minors holding through their parents or guardians) holding singly or jointly (not exceeding
    three in all);
(ii) Hindu Undivided Families through their respective Kartas;
(iii) Companies, corporate bodies, public sector undertakings, financial institutions, banks, partnerships, associations
      of persons or bodies of individuals, religious and charitable trusts and other societies registered under the
      Societies Registration Act, 1860 (so long as the purchase of Units is permitted under their respective constituent
      documents);
(iv) Religious and Charitable Public Trusts and Private Trusts, subject to receipt of necessary approvals as "Public
     Securities", where required.


                                                                                                                         80
(v) Non-resident Indians or Persons of Indian Origin (PIO) residing abroad (collectively, "NRIs") on a full
     repatriation basis (section 6.15, Applications by NRIs, PIOs and FIIs) or non-repatriation basis on the same
     terms described in (i) above, provided that the Units may be lawfully offered or sold to such NRIs in the
     jurisdiction where they reside and such NRIs can properly establish their status as such;
(vi) Foreign Institutional Investors registered with SEBI and the Reserve Bank of India, on a full repatriation basis.
(vii) Only non-individuals shall be eligible to invest in Institutional Plans of Birla Sun Life Cash Manager and Birla Sun
      Life Short Term Fund.
(viii)   Others who are permitted to invest in the schemes as per their respective constitutions.
6.13 How to Purchase Units of BMF Schemes
Existing Unitholders and new investors may purchase Units / additional units by completing an Application Form or the
Transaction Slip in their Account Statement. Application Forms and copies of this Offer Document will be available at
CAMS ISCs, distributors appointed by Birla Mutual Fund and/or at the offices of the Asset Management Company.
Fully completed applications for Units, accompanied by the total subscription amount, shall be accepted at official
points of acceptance of transactions within the prescribed cut-off times. See Section 9.12 Official Points of
Acceptance of Transactions.
6.14 Applications by Company/Corporate Body etc.
In case of an application under a Power of Attorney or by a limited company or a body corporate or a registered
society, or a trust, or a partnership or an association of persons or body of individuals, the relevant Power of Attorney
or the relevant resolution or the authority to make the application specifying the mode of operation or the partnership
deed and letter / authority given by all partners specifying mode of operation as the case may be, or duly certified
copy thereof, along with a certified copy of the memorandum and articles of association, incorporation / constitution
documents and/or bye-laws / certificate of registration must be lodged at the Registrar's office within seven days of
the subscription. In case of HUF, a list of all coparceners together with their dates of birth and specimen signatures
must be lodged at the Registrar's office within seven days of the subscription.
6.15 Applications by NRIs, PIOs and FIIs
(a) Repatriation Basis – NRIs, PIOs
In terms of Schedule 5 of notification no. F       EMA 20 / 2000 dated May 3, 2000 issued under the Foreign Exchange
Management Act, the RBI has granted a general permission to mutual funds, as referred to in Clause (23D) of Section
10 of the Act to issue and repurchase units of their schemes which are approved by SEBI to NRIs/ PIOs subject to
conditions set out in the aforesaid notification. Further, general permission is also granted to send such units to NRIs/
PIOs to their place of residence or location as the case may be.
NRI applications on a repatriation basis will be made by submitting payment by demand drafts purchased from /
cheques drawn on FCNR / NRE bank accounts payable at a city where CAMS ISC is located. Such applicants would
have to subsequently arrange to provide a debit certificate from their bankers confirming that the amount has been
paid by debiting a NRE / FCNR account.
(b) Non-Repatriation Basis - NRIs, PIOs
In case of NRIs/ PIOs seeking to apply for Units on a non-repatriation basis, payments may be made by cheque/draft
drawn out of Non Resident Ordinary Accounts (NRO) / Non-Resident (Special) Rupee Account (NRSR).
(c) FIIs
FIIs may pay their subscription amounts by direct remittance from abroad or out of their special Non-Resident Rupee
Accounts maintained with a designated bank in India. The RBI has granted mutual funds as referred to in Clause
(23D) of Section 10 of the Act general permission to issue units of SEBI approved schemes, to send such units out of
India to their global custodians and to repurchase units from FIIs and make payment therefor in terms of Schedule 5
of notification no. FEMA 20 / 2000 dated May 3, 2000 issued under the Foreign Exchange Management Act.
The Application Form must provide the FII's Special Non-Resident Rupee Account details maintained with any one of
the RBI designated banks. All applications made under a Power of Attorney by any of the above mentioned categories
require that the Power of Attorney or a duly certified copy thereof be lodged at the Registrar's office.
6.16 Ongoing Sales Price for all open-end BMF Schemes
The sales price per Unit, i.e. the price at which an investor can buy the Units, is called the public offer price and is
calculated as follows:
On going sales price = Net Asset Value X (1+Sales Load)
In the formula above the sales load will be as indicated below. As per SEBI (MF) Regulations, 1996 while determining
the prices of the Unit the Mutual Fund shall ensure that the repurchase (i.e. redemption) price is not lower than 93%
of the Net Asset Value and the On going sales price is not higher than 107% of the Net Asset Value. Provided further
that the difference between the repurchase and the ongoing sales price of the Unit shall not exceed 7% of the
ongoing sales price.

                                                                                                                       81
6.17 Entry Load for all the Equity Schemes
Please refer Section 1 of this offer document for Load structure.
6.18 Entry Load for all Debt Schemes
Please refer Section 1 of this offer document for Load structure.
The Mutual Fund reserves the right to change the sales load at any time subject to the condition that the Mutual Fund
shall ensure that the repurchase (i.e. redemption) price is not lower than 93% of the Net Asset Value and the sale
price is not higher than 107% of the Net Asset Value as per the SEBI (MF) Regulations, 1996 (see section 7.2,
Procedure for change in load structure). Provided that the repurchase price of units of a closed-end scheme shall
not be lower than 95% of the Net Asset Value. Any change in a sales load will only be applicable to Units
purchased by investors after the new sales load goes into effect . All loads including CDSC for each Scheme
shall be maintained in a separate account and may be utilised towards meeting selling and distribution expenses. Any
surplus in the account may be credited to the Scheme, whenever felt appropriate by the A MC.


6.19 Applicable NAV for subscriptions / purchases to Units of all Other Schemes / Plans of all open-end
BMF Scheme Units except BSLCM

a) In respect of valid applications, received upto 3.00 pm with a local cheque or demand draft payable at par at the
Official Points Acceptance, closing NAV of the day of receipt of application;
b) In respect of valid applications, received after 3.00 pm with a local cheque or demand draft payable at par the
Official Points Acceptance, closing NAV of the next business day; and
c) In respect of valid applications, received with an outstation cheque or demand draft which is not payable on par at
the Official Points Acceptance, closing NAV of day on which the cheque or demand draft is credited.

6.20 Applicable NAV for subscriptions / purchases including switch -in of Units Birla Sun Life Cash
Manager
a) In respect of valid applications, received upto 12.00 noon on a day at the Official Points of Acceptance and the
funds are available for utilization on the same day, the closing NAV of the day immediately preceding the day of
receipt of application shall be applicable;
b) In respect of valid applications, received after 12.00 noon on a day at the Official Points of Acceptance and the
funds are available for utilization on the same day, the closing NAV of the day immediately preceding the next
business day shall be applicable; 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
shall be applicable.

6.21 Payment Procedure for Purchase of BMF Schemes
6.21.1 For Resident Investors
Payment may be made by MICR cheques only or bank draft drawn on any bank, which is situated at and is a member
of the Bankers’ Clearing House, located at the place where the application is submitted. No Cash, Money Orders,
                                                                                                 lan
Outstation Cheques, Post Dated Cheques (except for application under) Systematic Investment P (SIP), Non MICR
Cheques, Postal Orders will be accepted. Bank charges for Outstation Demand Drafts for all schemes except for Birla
Cash Plus will be borne by the schemes and will be limited to the bank charges stipulated by the State Bank of India.
Outstation Demand Draft has been defined as a demand draft issued by a bank in place where there is no ISC
available for investors. Applicants should enclose the remittance net of Demand Draft Charges. Demand Draft charges
deducted should be specifically stated in the application form. The AMC will not accept any request for refund of
demand draft charges.
6.21.2 For NRIs/ FIIS
Repatriation Basis
-   In the case of NRIs, payment may be made either by inward remittance through normal banking channels or out
    of funds held in their Non - Resident (External) Rupee Account (NRE) / Foreign Currency (Non-Resident) Account
    (FCNR).
-   FIIs shall pay their subscription either by inward remittance through normal banking channels or out of funds held
    in Foreign Currency Account or Non-Resident Rupee Account maintained by the FII with a designated branch of
    an authorised dealer.
Non Repatriation Basis
- In the case of NRIs, payment may be made either by inward remittance through normal banking channels or out
   of funds held in their NRE / FCNR / Non-Resident Ordinary Rupee Account (NRO) / Non-Resident (Special) Rupee
   Account (NRSR).

                                                                                                                             82
6.24   Trustee's Absolute Discretion to Accept or Reject Applications
Any application for a transaction may be accepted or rejected in the sole and a bsolute discretion of the Trustee. An
application to invest in a Scheme is not binding on and may be rejected by the Trustee, the Asset Management
Company or their respective agents, until it has been confirmed in writing by the Asset Management Company or its
agents and payment has been received. The AMC may reject certain transactions or take such similar action (e.g.
send written warning, etc.) where in the opinion of the AMC such action is essential to protect the interests of the
investors at large.

6.25 Allotment
Allotment of Units in the Schemes would be at the discretion of the Trustee. Allotment is assured to all applicants
provided the applications are complete in all respects and are in order. The allotment date shall, under normal
circumstances, be the same date as the applicable NAV date as described in sections 6.19 and 6.20 above.

6.26 Unit Certificates
Normally no Unit certificates will be issued. However, if the applicant so desires, the AMC shall issue a non-
transferable Unit certificate to the applicant within 30 days of the receipt of request for the certificate. Unit certificate
if issued must be duly discharged by the Unit holder(s) and surrendered alongwith the request for Redemption/
Switch or any other transaction of Units covered therein.


6.27 Fractional Units
Fractional Units will be computed and accounted for up to three decimal places and they will in no way affect an
investors ability to redeem units.

6.28 Despatch of Account Statements
An Account Statement reflecting the number of Units allotted will be despatched within 10 Business Days to the Unit
holder after every financial transaction is effected. The Account Statement shall not be construed as a proof of title
and is only a computer generated statement indicating the details of transactions under the Scheme and is a non-
transferable document. The Account Statement will be issued in lieu of Unit Certificates.

6.29 Sytematic Investment Plan (SIP)
SIP is available to investors in BSLMI, BSLIF, BSLGSF, BSLEF, BSLNMF, BSLBI, BSLBAS, BSLFEF, BSL’95, BSLTR and
BSLSTF
SIP allows investors to invest small amounts of money in schemes of Birla Mutual Fund on a regular basis. Applicants
can avail of SIP facility by filing up the relevant application form available at branch offices. Given below are the
salient features of SIP:
1.        Investors have the option of:
          i.       Monthly Systematic Investment Plan
          ii.      Quarterly Systematic Investment Plan
2.        Minimum Application Amount:
          i.       Monthly Systematic Investment Plan (for all schemes except Birla Sun Life Tax Relief ’96): Investors
are required to submit minimum 8 postdated cheques of Rs. 1000/- and above each. For Birla Sun Life Tax Relief ’96
– Minimum 8 cheques of Rs.500 and above each.
          ii.      Quarterly Systematic Investment Plan (for all schemes except Birla Sun Life Tax Relief ’96: Investors
are required to submit minimum 4 postdated cheques of Rs. 2000/- each and above. For Birla Sun Life Tax Relief ’96
Minimum 8 cheques of Rs.500 and above each
3.        Investment Dates:
          i.       Monthly Systematic Investment Plan: Cheques can be of the following dates:
1st and/or 7th and/or 10th and/or 14th and/or 20th and/or 21st and/or 28th of every month.
Investors can also opt for multiple dates within a month and in this case. Investors may choose maximum upto 4
dates from the following dates: 1st and/or 7th and/or 10th and/or 14th and/or 20th and/or 21st and/or 28th of
each month. This is subject to the investor issuing the minimum number of cheques as specified in 2(i) above.
(Default date: If the investment frequency is not selected or in case of any ambiguity, the SIP date will be 7th of each
month/ quarter. In case where more than 4 dates are specified, default dates will be 7th, 14th, 21st and 28th of each
month.
4.        All cheques should be for the same amount and same date(s) of each month/quarter over the SIP tenure.
5.        Load Structure: Entry Load: aas applicable to the respective schemes. Exit Load: as applicable to the
respective schemes. For applicable load structure please refer to section 1.
6.        The AMC reserves the right to discontinue the SIP in case of cheque return and debit the cheque return
charges to the investor’s account.

                                                                                                                           83
7.         Schemes available under SIP - Birla Advantage Fund / Birla Asset Allocation Fund / Birla Balance / Birla Bond
Plus / Birla Dynamic Bond Fund / Birla Dividend Yield Plus / Birla Equity Plan / Birla Gilt Plus / Birla India Opportunities
Fund / Birla Index Fund / Birla Income Plus / Birla Midcap Fund / Birla MNC Fund / Birla MIP* / Birla MIP II* / Birla
Sun Life Monthly Income* / Birla Sun Life Income Fund / Birla Sun Life Government Securities Fund / Birla Sun Life
Equity Fund / Birla India GenNext Fund / Birla Sun Life New Millennium Fund / Birla Sun Life Buy India Fund / Birla
Sun Life Basic Industries Fund / Birla Sun Life Fro ntline Equity Fund / Birla Sun Life Short Term Fund/ Birla Sun Life
‘95 Fund / Birla Sun Life Tax Relief 96 / Birla India GenNext Fund / Birla Top 100 Fund / Birla Infrastructure Fund.
2. Systematic Transfer Plan (STP)
STP, formerly known as Systematic Transfers to Earn Equity Returns (STEER), allows the Investors to invest by
transfer of a fixed amount from debt funds to equity funds. Since the amount is fixed per month the investor gets the
benefit of Rupee Cost Averaging.
1.   Investors have the option of:
     i. Monthly Systematic Transfer Plan
     ii. Quarterly Systematic Transfer Plan
2.   Minimum Balance in the scheme at the time of enrollment for STP facility should be Rs. 6,000/-
3.  Minimum Transfer Amount
    i.Monthly Systematic Transfer Plan: Investors are required to instruct for minimum 8 transfers of Rs. 1000/- each
and above.
    ii. Quarterly Systematic Transfer Plan:
    Investors are required to instruct for minimum 4 transfers of Rs. 2000/- and above each.
4.   Transfer dates:
     i. Monthly Systematic Transfer Plan:
     The transfer can be instructed on 1st and / or 7th and/or 10th and / or 14th and/or 20th and/or 21st and/or
     28th of each month for minimum 8 transfers.
     ii. Quarterly Systematic Transfer Plan:
     The transfer can be instructed on 1st or 7th or 10th or 14th or 20th or 21st or 28th of each quarter for
     minimum 4 quarters.

5.   Load Structure:
     Entry load at the time of transfer into equity scheme: Entry load as applicable to the respective schemes. Exit load
     at the time of transfer out of Debt Scheme- Nil. Exit load at the time of redemption/repurchase: Exit load as
     applicable to respective schemes.
6. This facility is not available for investments under lock-in period.
7. Schemes available under STP - Can transfer “OUT” investment from the following Schemes: Birla Bond Plus / Birla
   Bond Index Fund / Birla Cash Plus / Birla Dynamic Bond Fund / Birla Floating Rate Fund / Birla Gilt Plus / Birla
   Income Plus / Birla MIP* / Birla MIP II* / Birla Sun Life Monthly Income / Birla Sun Life Government Securities /
   Birla Sun Life Cash Manager / Birla Sun Life Short Term Fund / Birla Sun Life Income Fund
    Can transfer “IN” investment in the following Schemes: Birla Advantage Fund / Birla Balance / Birla Dividend Yield
    Plus / Birla Equity Plan / Birla India Opportunities Fund / Birla MNC Fund / Birla Midcap Fund / Birla India GenNext
    Fund / Birla Sun Life Equity Fund / Birla Sun Life Sector Select Series / Birla Sun Life New Millennium Fund / Birla
                                                                                        ife
    Sun Life Buy India Fund / Birla Sun Life Basic Industries Fund / Birla Sun L Frontline Equity Fund / Birla Sun Life
    Tax Relief ‘96 / Birla Sun Life ‘95 Fund / Birla Top 100 Fund / Birla Infrastructure Fund.
3. Systematic Withdrawal Plan (SWP)
Investors can fulfill their regular income needs by giving standing instructions about the amount to be withdrawn
every month or quarter. While a fixed sum will be paid on request and the remaining part of the investment will
continue to earn returns. The withdrawal amount can be modified or the investor can terminate the SWP by giving
one month notice.
SWP, formerly known as Gain Regularly on Withdrawals, allows the investors an option to withdraw at regular
intervals.


1    Investors have the option of:
     i. Fixed Withdrawal
     ii. Appreciation Withdrawal

      Fixed Withdrawal                                          Appreciation Withdrawal
      Investors can withdraw fixed amount                 of    Investors can withdraw appreciation of Rs.1000 and
      Rs.1000 each and above at regular iintervals.             above at regular intervals. If the appreciation

                                                                                                                               84
                                                                 amount is less than Rs. 1000 or the specified
                                                                                       o
                                                                 amount there will be n SWP in that month/qarter.
                                                                 The Cumulative appreciation of this period and the
                                                                 immediately succeeding period shall be paid out
                                                                 subject to it being a minimum of Rs.1000 or the
                                                                 specified amount.
      Defualt dates: In case of ambiguity in selection of withdrawal frequency, the SWP date will be 7th of each month
      in case of Fixed withdrawal facility.
2     Withdrawal Frequency:
      For Fixed Withdrawal Option:
      Investors can withdraw fixed amount on 1st or 7th or 10th or 14th or 20th or 21st or 28th of each month/
      quarter for minimum 8 months/ 4 quarters.
      For Fixed Appreciation Withdrawal Option: Investors can withdraw appreciation on the 1st of each month/quarter
      for minimum 8 months/ 4 quarters.
3     Load Structure: Exit Load: If applicable to the Scheme shall be charged at the time of redemption/ withdrawal.
4     Schemes available under SWP - Birla Bond Plus / Birla Dynamic Bond Fund / Birla Gilt Plus / Income Plus / Birla
      MIP* / Birla MIP II* / Birla Sun Life Monthly Income * / Birla Sun Life Government Securitities Fund / Birla Sunlife
      Income Fund
5     This facility is not available for investments under lock-in period.
6 SWP enrollment form should be submitted before the 25th of the month where the SWP commences from the 1st
  of the following month.
7 The redemptions warrants will be sent at the requested frequency. The investor can also opt for Direct credit of
  the redemption proceeds to their bank accounts (wherever the AMC has tied up with the bank for offering this
  facility).
8                                                            i
           In case of fixed withdrawals, if the amount of nstallment 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 case of
      appreciation withdrawal, the appreciation will be calculated on the units available for redemption at the time of
      SWP installment. Investors opting for appreciation withdrawal in the event of there being no appreciation in a
      particular month, no withdrawal/payment will be effected in that month.
9          Withdrawal under SWP will be treated as redemption and equivalent units will be redeemed at the NAV
      related prices of the first business day of the month.
10        The investor has a right to modify or discontinue grow at any time he/she so desires, by sending a written
      request to any of the offices of Birla Mutual Fund or its authorised collection centres. Requests for
      modification/termination of grow should reach at least 5 days in advance.


6.30 Single Folio Facility
As an investor friendly measure, unless otherwise requested by the Unit holder, one Folio Number will be assigned
for one unit holder having holdings in different schemes of the Mutual Fund. In such a case, one consolidated Account
Statement will be provided. The number of Units allotted/redeemed will be reflected in his or her account a a    nd
statement to this effect will be issued to the Unit holder. The AMC reserves the right to assign the existing Folio
Number against multiple applications and / or subsequent purchases under a new application form by an existing
holder, with identical mode of holding and address

7. REDEMPTION AND SWITCH ( i.e . LIQUIDITY PROVISIO N S )
On any Business Day investors may redeem their Units and the Scheme(s) will buy back the Units at the applicable
Net Asset Value per Unit. Alternately, the investor can switch over to other open-end schemes specified and operated
by the Mutual Fund at the prevailing terms of those scheme(s) (see section 7.10, Interscheme Switching
Option). As mutual fund units are fungible (i.e. units & a particular Scheme/Plan/Option in the same folio can not be
distinguished from one another), redemption and switch-out requests within a folio will be considered on FIFO (first in
first out) basis. Hence earliest investments would be considered for redemption / switching-out, first.


7.1     How to Redeem Units
Notice for redemption can be sent to the Mutual Fund through the CAMS ISCs listed in Section 14. Redemption of
Units of all open-ended BMF Schemes will be made on any Business Day at the redemption price per unit (as
explained below) based on the Net Asset Value per Unit.
The Mutual Fund may however limit the right to make redemptions (see section 7.8, Right to limit
Redemptions).
                                                                                                                             85
In order to redeem Units, investors must submit a redemption request in the proper form to the CAMS ISCs.
Redemption requests may only be made at a CAMS ISC or by mail at those locations using pre-printed forms provided
to investors or blank forms available at the CAMS ISCs. All redemption request forms must contain the Investors' Folio
Number and be duly signed by all the Unitholders of record. Bank account details should also be provided in cases
where they are not available with the AMC/CAMS and/or where they have been changed. Redemption requests by
telephone, telegram, fax or other means that lack valid signatures will not be accepted unless confirmed by the AMC
in a manner that it deems fit.
The units issued under BSLTR have a mandatory lock-in-period which is three years each for Section 88 and Section
54EA investments, and seven years for Section 54EB investments. Section 54EA and 54EB investments made on or
before September 30, 2000 under any scheme have a mandatory three and seven year lock-in period respectively. On
                                                                                                 ent
completion of the three or seven year lock-in, as the case may be, notice for redemption can be s to the Mutual
Fund through the CAMS ISCs. No notice for redemption/switch will be entertained by the Mutual Fund
during the lock-in period.
In the event that a redemption load is applied the repurchase price per Unit will be as follows :
Redemption Price Per Unit = Net Asset Value X (1 - Redemption Load)

Example of calculation of Redemption Price
If the Applicable NAV is Rs. 10.00; Exit / Redemption Load is 2 percent, then the Redemption Price will be calculated
as follows :
= Rs. 10.00 * (1-0.02)
= Rs. 10.00 * (0.98)
= Rs. 9.80
All loads including CDSC for each Scheme shall be maintained in a separate account and may be utilised towards
meeting selling and distribution expenses. Any surplus in the account may be credited to the Scheme, whenever felt
appropriate by the AMC.
7.2   Procedure for change in load structure
The AMC reserves the sole and unconditional right to modify / change the Load structure if it so deems fit. The AMC
reserves the right to introduce an Entry Load and / or Exit Load with prosp ective effect depending upon the
circumstances prevailing at that time. The Load may also be changed from time to time and in the case of an
Exit/Redemption Load this may be linked to the period of holding. The AMC may charge a Load for Switch of Units
between the various Plans of the Scheme(s) and this Load may be different from the Sales Load charged for Sale of
new Units. The Load charged could also be different for different Plans of the Scheme(s) at the same time. All Loads
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(s), whenever felt appropriate by the AMC.
The Redemption Price however, will not be lower than 93% of he NAV, and the Sale Price will not be higher than
107% of the NAV, provided that the difference between the Redemption 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.
Any imposition or enhancement of Load in future shall be applicable on prospective investments only. At the time of
changing the Load Structure :
(i) The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The
    addendum will be circulated to all the distributors / brokers so that the same can be attached to all Offer
    Documents and Abridged Offer Documents already in stock. The addendum will be sent alongwith the newsletter
    sent to the Unit holders immediately after the changes.
(ii) Arrangements will be made to display the changes / modifications in the Offer Document in the form of a notice in
     all the Investor Service Centres and distributors / brokers office.
(iii)   The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slip issued to
the investors on submission of the application form and will also be disclosed in the Account Statement or in the
covering letter issued to the Unit holders after the introduction of such Load.

7.3   Redemption Amount
A Unitholder may request the redemption of a certain specified Rupee amount or of a certain number of Units. If a
redemption request is for both a specified Rupee amount and a certain number of Units, the s   pecified number of Units
will be considered the definitive request. In the case where a Rupee amount is specified or deemed to be specified for
redemption, the number of Units redeemed will be the amount redeemed divided by the appropriate day's
Redemption Price (see section 7.1, How to Redeem Units and section 7.6, Payment of Redemption Proceeds).
Redemption requests will be honoured to the extent permitted by the credit balance in the Unitholder's Account. If
only the Redemption amount is specified by the Unit holder, the AMC will divide the Redemption amount so specified
                                                                                                                    86
by the Redemption Price to arrive at the number of Units. The request for Redemption of Units could also be in
                                                                                        e
fractions, upto three decimal places. The minimum amount of Redemption may b changed in future by the AMC. If
the balance in the account of the Unit holder does not cover the amount of Redemption request, then the Mutual
Fund is authorised to close the account of the Unit holder and send the entire such (lesser) balance to the Unit holder.

7.4 Applicable NAV for redemptions / repurchases including switch-out from Units of all Schemes /
Plans except Birla Sun Life Cash Manager.
a)In respect of applications received at the Official Points of Acceptance upto 3.00 pm, closing NAV of the day of
receipt of application shall be applicable; and

b) In respect of applications received at the Official Points of Acceptance after 3.00 pm, closing NAV of the next
business day shall be applicable.

Applicable NAV for redemptions / repurchases including switch-out from Units of Birla Sun Life Cash
Manager
a) In respect of valid applications received at the Official Points of Acceptance upto 3.00 pm, the closing NAV of the
day immediately preceding the next business day shall be applicable; and

b) In respect of valid applications received at the Official Points of Acceptance after 3.00 pm, the closing NAV of the
next business day shall be applicable.

7.5 Effect of Redemptions
The corpus of the Schemes will stand reduced by an amount equivalent to the product of the number of Units
redeemed and the applicable Net Asset Value as on the date of redemption. The cash outflow from the Schemes will
be equal to the product of the number of Units redeemed and the applicable Net Asset Value. If a redemption load or
CDSC is charged the cash flow will be at a Net Asset Value as determined by the formula in the section titled section
7.1, How to Redeem Units.
7.6   Payment of Redemption Proceeds
(a) For Investors having a bank account with a bank with whom the AMC would have an arrangement from time to
    time.
    Unit holders having a bank account with certain banks with whom the Mutual Fund would have an arrangement
    from time to time may avail the facility of Direct Credit to their account for Redemption of the Unit s of the
    Scheme(s). In such cases the Mutual Fund will under normal circumstances endeavour to credit the first/sole Unit
    holders account with the Redemption proceeds within one Business Day of the acceptance of Redemption request.
(b) For other Investors not covered by (a) above and for other schemes :
    Redemption proceeds will be paid by cheque and payments will be made in favour of the Unit holders registered
    name and bank account number.
Please note that it is mandatory for the investors to provide their complete account details.
Redemption cheques will be sent to the Unit holders address (or, if there is more than one holder on record, the
address of the first-named holder). All Redemption payments will be made in favour of the registered holder of the
Units or, if there is more than one registered holder, to the first registered holder).
As per SEBI Regulations, the Mutual Fund shall despatch Redemption proceeds within 10 Business Days of receiving
the Redemption request. However, under normal circumstances, the Mutual Fund will endeavor to despatch the
Redemption cheque within 3 Business Days of the acceptance of the Redemption request.
It is compulsory for investors to quote their Permanent Account         Number (PAN) while making an application for
Purchase of Units, amounting to Rs. 50,000/- or more along with documentary proof of PAN. Investors can submit
Photocopy of the PAN card issued by the Income Tax Department quoting the investor’s PAN in support to the PAN.
In case of joint applicants, PAN details of all holders should be submitted. In case the person making the application
is a minor, PAN details of the Guardian must be submitted. In case a person does not have a PAN and makes an
application for purchase of units in a mutual fund, the said investor should make a declaration in Form 60/Form 61
giving therein the particulars of the transaction. Applications where the PAN is not quoted or the declaration is not
provided in Form 60/ Form 61 would be rejected by the Mutual Fund without any reference to the investor.

7.7   Redemptions by NRIs / FIIs
Credit balances in the account of an NRI / FII Unit holder, may be redeemed by such Unit holder in accordance with
the procedure described above and subject to any procedures laid down by the RBI, if any.


                                                                                                                          87
Payment to NRI / FII Unit holders will be subject to the relevant laws / guidelines of the RBI as are applicable from
time to time (subject to deduction of tax at source as applicable).
In the case of NRIs :
(i) Credited only to NRSR account of the NRI investor where the payment for purchase of Units redeemed was made
out of funds held in NRSR account or
(ii) Credited, at the NRI investor’s option, to his / her NRO or NRSR account, where the payment for the purchase of
the Units redeemed was made out of funds held in NRO account or
(iii) Remitted abroad or at the NRI investor’s option, credited to his / its NRE / FCNR / NRO / NRSR account, where
the Units were purchased on repatriation basis and the payment for the purchase of Units redeemed was made by
inward remittance through normal banking channels or out of funds held in NRE / FCNR account.
In the case of FIIs
Credit the net amount of redemption proceeds of such Units to the foreign currency account or Non-Resident Rupee
Account of the FII investor. Pursuant to Government of India Notification No. GSR (381) E dated May 3, 2000,
transactions which are not specifically prohibited under the Foreign Exchange Management (Current Account
Transactions) Rules, 2000 or which are not included in Schedule II (transactions specified in this Schedule require
prior approval of the Government of India) or Schedule III (transactions specified in this Schedule require prior
approval of Reserve Bank of India) may be permitted by authorised dealers without any monetary / percent age
ceilings subject to compliance with the provisions of Section 10(5) of the Foreign Exchange Management Act, 1999.

7.8     Right to Limit Redemptions
The Trustee may, in its sole discretion in response to unforeseen circumstances or unusual market conditions
including, but not limited to, extreme volatility of the stock, fixed income and money markets, extended suspension of
trading on the stock exchanges, natural calamities and communication breakdowns, 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. In addition, the Trustee
reserves the right, in its sole discretion, to limit Redemptions with respect to any single account to an amount of Rs. 2 crore on a single Business
Day.). Any Units which by virtue of this limitation, are not redeemed on a particular Business Day will be carried
forward for redemption on the next following Business Day in order of receipt and will be made at the Net Asset Value
in effect on the subsequent Business Day(s) on which the redemption request is fulfilled. To the extent multiple
applications are being satisfied in a single day under these circumstances, redemption cheques may be mailed out to
investors within a reasonable period of time and will not be subject to the normal response time of three Business
Days.


7.9     Suspension of Sale or Redemption of Units
The Mutual Fund at its sole discretion reserves the right to withdraw Sale and/or Redemption or Switching of the
Units in the Scheme(s) (including an y one of the Plan of any of the Scheme) temporarily or indefinitely, if in the
opinion of the AMC the general market conditions are not favourable and/or suitable investment opportunities are not
available for deployment of funds. However, the suspension of Sale/Redemption/Switch either temporarily or
indefinitely will be with the approval of the Trustee.
The Sale, Redemption and Switching of the Units may be temporarily suspended under the following conditions:
1.    When one or more stock exchanges or markets, which provide basis for valuation for a substantial portion of the
      assets of the Scheme are closed otherwise than for ordinary holidays.
2.    When, as a result of political, economic or monetary events or any circumstances outside the control of the
      Trust ee and the AMC, the disposal of the assets of the Scheme(s) are not reasonable, or would not reasonably be
      practicable without being detrimental to the interests of the Unit holders.
3.    In the event of breakdown in the means of communication used for the valuation of investments of the
      Scheme(s), without which the value of the securities of the Scheme(s) cannot be accurately calculated.
4.    During periods of extreme volatility of markets, which in the opinion of the AMC are prejudicial to the interests of
      the Unit holders of the Scheme.
5.    In case of natural calamities, strikes, riots and bandhs.
6.        In the event of any force majeure or disaster that affects the normal functioning of the AMC or the ISC.
7.        During the period of Book Closure.
8.        If so directed by SEBI.
The AMC reserves the right in its sole discretion to withdraw the facility of Sale and Switching option of Units into and
out of the Scheme(s) [including any one Plan of the Scheme(s)], temporarily or indefinitely, if AMC views that
changing the size of the corpus further may prove detrimental to the existing Unit holders of the Scheme(s).
Suspension or restriction of Redemption facility shall be made applicable only after the approval of the Board of
                                                                                                                                                88
Directors of the AMC and the Trustee. The approval from the AMC Board and the Trustee giving details of
circumstances and justification for the proposed action shall also be informed to SEBI in advance.

7.10 Web Based Transactions
The Mutual Fund may allow subscriptions / Redemption of Units by electro nic mode through the various web -sites
with whom the AMC would have an arrangement from time to time. Normally, the subscription proceeds, when
invested through this mode, are by way of direct credit to the designated bank collection account of the Scheme. The
Redemption proceeds, (subject to deduction of tax at source, if any) through this mode, are directly credited to the
bank account of the Investors who have an account at the designated banks with whom the AMC has made
arrangements from time to time. The intermediary will aggregate the data and forward the same to the AMC / ISC for
processing. Unit holders may request for change of address / bank account etc. through this mode provided, such
web-site(s) provide for this facility. The Fund, the AMC, the Trustee, alongwith its directors, employees and
representatives shall not be liable for any damages or injuries arising out of or in connection with the use of the web-
site or its non-use including non-availability or failure of performance, loss or corruption of data, loss of or damage to
property (including
profit and goodwill), work stoppage, computer failure or malfunctioning or interruption of business; error, omission,
interruption, deletion, defect, delay in operation or transmission, computer virus, communication line failure,
unauthorised access or use of information. The Fund may introduce a facility for distributors to transact on the web
on behalf of their clients, provided the client has authorised the distributors to do so by executing a Power of Attorney
in favour of the distributor for this purpose. In such event, the Power of Attorney should be submitted to the Fund. It
shall be the responsibility of the distributor, to ensure that the Power of Attorney is valid and subsisting to carry out
the transaction.

8. INVESTORS' RIGHTS A N D S E R V I C E S
8.1 Rights of Unitholders
(i) Unitholders under the Scheme have a proportionate right in beneficial ownership of the assets of and to the
     dividend declared by the Mutual Fund under the Scheme. All units in Birla Sun Life Term Plans in a particular
     investment option rank pari passu as to assets, earnings and receipt of dividends or distributions, if any, that may
     be declared by the Trustees.
(ii) The Unitholders have the right to ask the Trustee about any in formation which may have an adverse bearing on
     their investments and the Trustee shall be bound to disclose such information to the Unitholders.
(iii) The Unitholders are entitled to receive dividend warrants within 30 days of the date of declaration of the dividend
      and redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase.
(iv) The appointment of an Asset Management Company for the Mutual Fund can be terminated by 75% of the
     Unitholders or by a majority of the Trustees.
(v) Unitholders have the right to inspect all the documents listed under the heading see section 8.3, Documents
     Available for Inspection.
(vi) No change in fundamental attributes or a change which would modify the Scheme and affect the interest of
     Unitholders can be carried out unless a written communication has been issued to investors about the proposed
     change, an advertisement has been released in one English National Daily and 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 to exit at the prevailing NAV without any exit load.
8.2 Investor Service
The Mutual Fund intends to promptly follow up with the CAMS Investor Service Centres on all complaints and
enquiries received from investors regarding the Scheme and the issue of Units with a view to resolving them quickly.
For further assistance in this regard, investors are urged to contact the Mutual Fund's Customer Service Officer,
Attention: Mr. Harih aran Iyer of the Asset Management Company. Mr. Hariharan Iyer may be reached during normal
business hours at Ahura Centre, 2nd Floor, Tower A, 96/A-D, Mahakali Caves Road, Andheri - (East) Mumbai 400093.
at Telephone nos. (022) 66928000 Fax no. (022) 66928111.

The following is a history of all Complaints Redressal during the period April 1999 - June 2006.

Investor Complaints
Given below is the status of Investor Complaints received directly by the mutual fund and forwarded by SEBI.

Complaints Redressal Statistics April 1999 - October 2006
                                            Complaints                Complaints               Complaints
Scheme                                      Received                  Redressed                Pending
Birla Advantage Fund                                           8996                     8996                0
Birla Asset Allocation Fund                                     353                      353                0

                                                                                                                       89
Birla Balance                                                   6836              6835                 1
Birla Bond Index Fund                                             30                30                 0
Birla Bond Plus                                                   62                62                 0
Birla Cash Plus                                                  736               736                 0
Birla Dividend Yield Plus                                       1525              1515                10
Birla Dynamic Bond                                                 6                 6                 0
Birla Equity Plan                                               2667              2664                 3
Birla Floating Rate Fund                                          37                37                 0
Birla FMP                                                          8                 8                 0
Birla Gilt Plus                                                  441               441                 0
Birla Income Plus                                               8756              8754                 2
Birla Index Fund                                                  23                23                 0
Birla India GenNext Fund                                         119               118                 1
Birla India Opportunities Fund                                 10020             10018                 2
Birla Midcap                                                     236               235                 1
Birla MIP                                                       1116              1116                 0
Birla MIP II Saving 05                                            64                64                 0
Birla MIP II Wealth 25                                           300               298                 2
Birla MNC Fund                                                  9748              9747                 1
Birla Sun Life Equity Fund                                        91                91                 0
Birla Sun Life Monthly Income                                     76                74                 2
Birla Sun Life New Millennium Fund                               160               159                 1
Birla Sunlife '95                                                 76                75                 1
Birla Sun Life Income Fund                                        17                17                 0
Birla Sun Life Basic Industries Fund                              77                77                 0
Birla Sun Capital Tax Relief-96                                   47                47                 0
Birla Sun Buy India Fund                                         105               104                 1
Birla Sun Life Frontline Equity Fund                              61                60                 1
Birla Sun Life Govt. Securities                                    2                 2                 0
Birla Taxplan'98                                                  58                58                 0
Birla Top 100 Fund                                               355               350                 5
Birla Infrastructure Fund                                        142               139                 3
Birla Fixed Maturity Plan                                          3                 3                 0
Birla Cash Mana ger                                                3                 3                 0
Birla Long Term Advantage Fund                                     1                 1                 0
General                                                          240               219                21
TOTAL                                                          53593             53535                58

8.3       Documents Available For Inspection
Copies of the following documents may be inspected from 10am to 12noon on any Business Day at the registered
office of the AMC.
• Trust Deed;
• Investment Management Agreement;
•     Custodian Agreement;
•     Registrars Agreement;
•     Memorandum and Articles of Association of the Trustee and AMC;
•     Securities and Exchange Board of India (Mutual Funds) Regulations, 1996;
•     Indian Trusts Act, 1882;
•     Registration Certificate for the Mutual Fund granted by SEBI.
•     Annual Report of the Asset Management Company.



8.4     NAV Information
The NAV of the respective Plans will be calculated and announced by the AMC at the close of each Business Day.
Information regarding NAV can be obtained by the Unit holders / Investors by calling or visiting the nearest ISC. The
NAVs of the respective Plans shall be published atleast in two daily newspapers on a daily basis in accordance with
SEBI Regulations; NAVs will also be displayed on the Website of the Mutual Fund.
                                                                                                                  90
AMC shall update the NAVs on the website of Association of Mutual Funds in India - AMFI (www.amfiindia.com) by
9.00 p.m. every day. In case of any delay, the reasons for such delay would be explained to AMFI & reported in
Compliance Test Report. If the NAVs are not available before commencement of business hours on the following day
due to any reason, Mutual Fund shall issue a press release providing reasons and explaining when the Mutual Fund
would be able to publish the NAVs. The Sale and Redemption price of Units shall be published in a daily newspaper on
a daily basis in accordance with SEBI Regulations.

9.    UNITHOLDER INFORMATION
9.1 Folio Number
Every investor will be identified by a Folio Number. Please quote your folio number in all communications with the
Mutual Fund or the CAMS ISCs.
9.2    Issuance of Units
The Trustee is entitled, in its sole and absolute discretion, to reject any application for Units. Upon issue, a non-
transferable Account Statement (or, if requested, a non-transferable Unit Certificate) will be sent to each Unitholder.
The Account Statement or Unit certificate will be confirmation of the Units purchased.
9.3    Account Statements
Account Statement reflecting the new or additional subscription as well as Redemption / Switch of Units shall be
despatched to the Unit holder within 30 days from the date of receipt of the request from the Unit holder. However,
under normal circumstances, the Mutual Fund shall endeavour to dispatch the Account Statement within 10 Business
Days from the date of receipt of the request.
9.4 Nomination Facility
Pursuant to Regulation 29A of the SEBI Regulations, the AMC is providing an option to the Unit holder to nominate (in
the manner prescribed under the SEBI Regulations), a person in whom the Units held by him/her shall vest in the
event of his/her death. Where the Units are held by more than one person jointly, the joint Unit holders may together
nominate a person in whom all the rights in the Units s          hall vest in the event of death of all the joint Unit holders. By
provision of this facility the AMC is not in any way attempting to grant any rights other than those granted by law to
the nominee. A nomination in respect of the Units does not create an interest in the property after the death of the
Unit holder. The nominee shall receive the Units only as an agent and trustee for the legal heirs or legatees as the
case may be. It is, hereby, clarified that the nominees under the nomination facility provided herein shall not
necessarily acquire any title or beneficial interest in the property by virtue of this nomination.
Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, holder of
Power of Attorney cannot nominate. The Nominee shall not be a trust other than a religious or charitable trust,
society, body corporate, partnership firm, Karta of Hindu Undivided Family or a Power of Attorney holder. A minor can
be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the
unit holder. Nomination can also be in favour of the Central Government, State Government, a local authority, any
person designated by virtue these office or a religious or charitable trust. A non-resident Indian can be a Nominee
subject to the exchange controls in force from time to time. Nomination in respect of the Units stands rescinded upon
the Redemption of Units. Cancellation of nomination can be made only by those individuals who hold Units on their
own behalf singly or jointly and who made the original nomination. On cancellation of the nomination the nomination
shall stand rescinded and the Mutual Fund / AMC shall not be under any obligation to transfer the Units in favour of
the nominee. The nomination facility extended under the Scheme is subject to existing laws. The AMC shall, subject to
production of such evidence which in their opinion is sufficient, proceed to effect the payment to the Nominee.
                                o
Transfer of Units / payment t the nominee of the sums shall discharge the Mutual Fund / AMC of all liability towards
the estate of the deceased Unit holder and his/her/their successors/legal heirs.
9.5 Transfer / Transmission Facility
The Mutual Fund will be repurchasing Units on an ongoing basis and hence the transfer facility is found redundant.
However, if a transferee becomes a holder of the Units by operation of law or upon enforcement of a pledge, the AMC
                                                                         ufficient, proceed to effect the transfer, if the
shall, subject to production of such evidence, which in their opinion is s
intended transferee is otherwise eligible to hold the Units.Transmission of units / payment of sums standing to the
credit of the deceased Unitholder in favour of the surviving Unitholders shall discharge the mutual fund and the Asset
Management Company of all liability towards the estate of the deceased Unitholder and his / her successors and legal
heirs. Further, if either the mutual fund or the Asset Management Company incur any loss whatsoever arising out of
any litigation or harm that it may suffer in relation to the transmission, they will be entitled to be indemnified
absolutely from the deceased Unitholder's estate.
9.6 Pledging Units
The Units under the respective Scheme(s) may be offered as security by way of a pledge / charge in favour of scheduled banks, financial
institutions, non-banking finance companies (NBFC’s), or any other body. The AMC and / or the ISC will note and record such Pledged Units. A
standard form for this purpose is available on request from any of the ISCs. The AMC shall mark a lien only upon receiving the duly completed


                                                                                                                                         91
form and documents as it may require. Disbursement of such loans will be at the entire discretion of the bank / financial institution / NBFC or any
other body concerned and the Mutual Fund assumes no responsibility thereof.
The Pledgor will not be able to redeem Units that are pledged until the entity to which the Units are pledged provides written authorisation to the
Mutual Fund that the pledge / lien charge may be removed.
9.7 Mode of Holding
The mode of holding may be "Single", "Joint" or "Anyone or Survivor".
In case the Units are held in the names of more than one Unit holder, where mode of holding is specified as “Joint”,
                                     e
Redemption requests will have to b signed by all the joint holders. However, in cases of holding specified as ‘Anyone
or Survivor’, any of the Unit holders will have the power to make Redemption request, without it being necessary for
all the Unit holders to sign. However, in all cases, the Redemption proceeds will be paid only to the first named
holder.
9.8 Half yearly Reports
The Asset Management Company will mail to Unitholders, portfolio information regarding the holdings in the Schemes'
portfolios as well as information on the Schemes' performance. Before the expiry of one month from the close of each
half-year that is on 31/3 and 30/9, the Fund will publish Scheme portfolios in the format, in one national English daily
newspaper and in a newspaper in the language of the region where the Head Office of the Fund is situated or send a
copy to all Unitholders. The half-yearly portfolios will also be disclosed on the AMC's website within one month from
the expiry of each half-year.
9.9    Financial Reports
The Mutual Fund will make all disclosures required by the SEBI (MF) Regulations, 1996. An abridged scheme wise
annual report of the Mutual Fund shall be mailed to all Unitholders on a householding basis (i.e. one copy shall be
sent where more than one Unitholder have the same address and where the same Unitholder has multiple folios) not
later than six months from the date of closure of the relevant fiscal year and the full annual report shall be available
for inspection at the head office of the Mutual Fund and a copy shall be made available to the Unitholders on request.
Scheme wise annual report shall also be displayed on the AMC's website (www.birlasunlife.com) and it shall be linked
with the AMFI website (www.amfiindia.com). As required by the SEBI (MF) Regulations, 1996 the Mutual Fund shall
before the expiry of one month from the closure of each half year that is on 31st March and on 30th September,
publish its unaudited financial results in one English language daily newspaper circulating in the whole of India and in
a newspaper published in the language of the region where the head office of the Mutual Fund is situated. Audited
annual accounts published before the expiry of one month from the end of the fiscal year i.e. March 31st, may
substitute for publication of the unaudited financials for the period ending March 31st. Unaudited financials published
in the above manner should also be displayed on the AMFI website and AMC's website before the expiry of one month
from the close of each half-year.
9.10 Consent of Unitholders
The Trustee shall obtain the consent of the Unitholders of the Scheme in the following circumstances:
(i) When the Trustee are required to do so by SEBI in the interest of the Unitholders;
(ii) Upon the request of three-fourths of the Unitholders of the Scheme under the Mutual Fund;
(iii) If a majority of the Trustee decide to wind-up the Scheme or prematurely redeem the Units;
Unitholders are entitled to one vote per Unit held on all matters to be voted upon by Unitholders.


9.11 Prevention of Money Laundering and Know Your Customer

Prevention of Money Laundering Act, 2002 (hereinafter referred to as the PMLA) came into effect from July 1, 2005
vide Notification No. GSR 436(E) dated July 1, 2005 issued by Department of Revenue, Ministry of Finance,
Government of India. Also, SEBI vide its circular no. ISD/CIR/RR/AML/1/06 dated January 18, 2006 mandated that all
intermediaries including Mutual Funds should formulate and implement a proper policy framework as per the
guidelines on anti money laundering measures and also to adopt a Know Your Customer (KYC) policy. The
intermediaries may, according to their requirements specify additional disclosures to be made by clients for the
purpose of identifying, monitoring and reporting incidents of money laundering and suspicious transactions
undertaken by clients. Further SEBI vide its circular no. ISD/CIR/RR/AML/2/06, dated March 20, 2006, advised all
intermediaries to take necessary steps to ensure compliance with the requirement of section 12 of the PMLA Act inter-
alia maintenance and preservation of records and reporting of information relating to cash and suspicious transactions
to Financial Intelligence Unit -India (FIU-IND), New Delhi.

The investor(s) should ensure that the amount invested in the scheme is through legitimate sources only and does
not involve and is not designated for the purpose of any contravention or evasion of the provisions of the Income Tax
Act, Prevention of Money Laundering Act, Prevention of Corruption Act and / or any other applicable law in force and
also any laws enacted by the Government of India from time to time or any rules, regulations, notifications or

                                                                                                                                               92
directions issued thereunder. To ensure appropriate identification of the investor(s) under its KYC policy and with a
view to monitor transactions for the prevention of money laundering, Birla Sun Life Asset Management Company
Limited (“BSLAMC”) investment manager of Birla Mutual Fund reserves the right to seek information, record investor’s
telephonic calls and / or obtain and retain documentation for establishing the identity of the investor, proof of
residence, source of funds, etc. It may re-verify identity and obtain any incomplete or additional information for this
purpose.

The investor(s) and their attorney, if any, shall produce reliable, independent source documents such as photographs,
certified copies of ration card/ passport/ driving license/PAN card, etc. and/or such documents or produce such
information as may be required from time to time for verification of the identity, residential address and financial
information of the investor(s) by BSLAMC. If the investor(s) or the person making payment on behalf of the
investor(s), refuses / fails to provide the required documents/ information within the period specified in the
communication(s) sent by BSLAMC to the investor(s), and after applying appropriate due diligence measures, BSLAMC
believes that the transaction is suspicious in nature within the purview of the Act and SEBI circulars issued from time
to time and/or on account of deficiencies in the documentation, BSLAMC shall have absolute discretion to report
suspicious transactions to FIU -IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment
of units and effect mandatory redemption of unit holdings of the investor(s) at the applicable NAV subject to payment
of exit load, if any, in terms of the said communication sent by the AMC to the investor(s) in this regard.

The Birla Mutual Fund, Birla Sun Life Asset Management Company Limited, Birla Sun Life Trustee Company Private
Limited and their Directors, employees and agents shall not be liable in any manner for any claims arising whatsoever
on account of freezing the folios / rejection of any application / allotment of units or mandatory redemption of units
due to non-compliance with the provisions of the PMLA, SEBI circular(s) and KYC policy and / or where the AMC
believes that transaction is suspicious in nature within the purview of the Act and SEBI circular(s) and reporting the
same to FIU-IND.

The KYC documentation shall also be mandatorily complied with by the unitholders entering the Register of Members
by virtue of operation of law e.g. transmission, etc

9.12 Official Points of Acceptance of Transactions
The official points of acceptance of transactions of all schemes of BMF will be as specuified on the back side of the
cover page. The AMC reserves the right to change the list of official points of acceptance of transactions from time to
time.

10. DIVIDENDS
10.1 Dividend Plan
Dividends will be paid to investors of record i.e. Unitholders whose names appear on the Unitholders' register on the
record date. Provided that that an investor of record for the purpose of dividend distributions shall be a Unitholder
who has been allocated units representing receipt of clear funds by the respective scheme. All dividend payments will
be made subject to availability of distributable profits.
Under BSLSS and BSLFEF, the Trustee intends to declare annual dividends. BSL'95 and BSLEF will declare dividends
on record dates announced by the Trustee from time to time. Interim dividends may be declared at the sole discretion
of the Trustee.
BSLTR’96 may declare dividend or make any other distributions to other Unitholders as may be deemed fit by the
Trustee from time to time. This shall be done keeping in view the tax and other applicable laws in force at that point
in time. The Trustee reserves the right to introduce a dividend paying class of units at a later date.
In BSLSTF it is intended to declare monthly dividends in the Dividend Plan on the last business day of each month.
Dividends when declared shall be compulsorily reinvested in the Scheme.
Dividend under the, Weekly Dividend Option in Institutional Plan and Dividend Plan of BSLCM, will be declared and
distributed on weekly dividends on each Wednesday subject to availability of distributable profits. If Wednesday is not
a Business Day, dividend will be declared on the next Business Day. The Daily Dividend Option under BSLCM -
Institutional Plan will declare dividends each day, on which Net Asset Value (NAV) is calculated for the Plan subject to
availability of distributable profits. In case of BSLSTF and BSLCM, all dividends will be compulsorily reinvested in the
Scheme under the respective Dividend Plan / Option at the ex-dividend NAV of the day on which dividend is declared.
The dividends so reinvested shall be constructive payment of dividends to the Unitholders and constructive receipt of
the same amount from each Unitholder for reinvestment in Units. On reinvestment of dividends, the number of units
to the credit of the Unitholder will increase to the extent of the dividend reinvested divided by the NAV applicable as
explained above. There will be no dividend payouts.


                                                                                                                        93
Under Scheme BSLMI the Trustee intends to declare monthly and quarterly dividends under Monthly and Quarterly
Plans. Under the Scheme BSLIF the Trustee intends to declare quarterly and Half -yearly dividends under the Quarterly
and Half-yearly Dividend plans. Under the Scheme BSLGSF the Trustee intends to declare quarterly dividend under
Short Term Plan and half yearly dividends under Long term Plan. Interim dividends may be declared at the sole
discretion of the Trustee. BSLMI shall make dividend payments at each month. Dividends will be paid to Unitholders
of record as of the last Business Day of the month. Quarterly dividends will be paid for quarters ending June,
September, December and March. Half Yearly dividends will be paid for half years ending September and March.
However, the schemes may declare dividend at the discretion of the Trustees, subject to availability of distributable
surplus. The mutual fund reserves the right to alter, modify or amend in any manner one or more or all features of a
Dividend Plan, discontinue one or more or all existing features and/or add new features therein subject to prior
approval of the Trustee.

Nothwithstanding anything contained hereinabove for declaration of dividends having frequency exceeding
monthly distribution the following Dividend Distribution Procedure shall be adhered to-
The salient features with respect to. the dividend distribution, in accordance with SEBI circular no. SEBI/IMD/CIR
No.1/64057/06, dated April 4, 2006, are as follows:

•   Quantum of Dividend and Record date shall be fixed by the trustees.
•   AMC shall issue a notice to the public communicating the decision about dividend including the record date, within
    one calendar day of the decision made by the trustees in their meeting.

Record date shall be the date that will be considered for the purpose of determining the eligibility of
investors whose name appear on the register of unit holders. Record date shall be five calendar days
from the issue of notice.

10.2 Dividend Reinvestment
Dividend reinvestment option is available to Unitholders under schemes BSLIF, BSLMI, BSLL '95, BSLEF, BSLGSF,
BSLSS, BSLSTF, BSLCM and BSLFEF. Dividends are reinvested at the ex-dividend NAV and the Unitholder is allotted
additional units in the scheme.
10.3 Payment of Dividends
Unitholders are entitled to receive dividend warrants within 30 days of the date of declaration of the dividend.
However, the mutual fund will endeavour to make dividend payments sooner. The Mutual Fund has arranged with
selected banks to allow for a direct credit of the dividend payment under BSLMI to the bank account of the Unitholder
at the specified bank. To facilitate this effort Unitholders should ensure that they provide the Mutual Fund with their
bank account details in the Application Form. The Mutual Fund on a best efforts basis and after scrutinising the names
of the banks where Unitholders have their accounts will negotiate with select banks to allow direct credit to
Unitholders' bank accounts.
For all other Unitholders, the Mutual Fund may make dividend payments by payable at par cheques or demand draft
and the cheques or demand drafts will be mailed by post or couriered as per the applicable rules to the Unitholders'
address of record. The Mutual Fund and the Asset Management Company shall not be liable for any loss that an
investor may suffer on account of loss in transit / fraudulent encashment of dividend cheques / warrants.
10.4 Effect of Dividends
As with the redemption of Units, when dividends are declared and paid with respect to the Schemes, the net assets
attributable to Unitholders in the respective Dividend Plan will stand reduced by an amount equivalent to the product
of the number of Units outstanding and the dividend amount per Unit declared on the record date. The NAV of
Unitholders in the Growth Plan will remain unaffected by the payment of dividends.

11. TAX BENEFITS
(As per tax laws currently in force.)
The following summary outlines the key tax implications applicable to unit holders based on the relevant provisions
under the Income-tax Act, 1961 (‘Act’) an d Wealth-tax Act, 1957 (collectively called ‘the relevant provisions’) and
subsequent to the amendments made by the Finance Act, 2006.


THE FOLLOWING INFORMATION IS PROVIDED FOR GENERAL INFORMATION ONLY. HOWEVER, IN VIEW OF THE
INDIVIDUAL NATURE OF THE IMPLICATIONS, EACH INVESTOR IS ADVISED TO CONSULT WITH HIS OR HER OWN
TAX ADVISORS/AUTHORISED DEALERS WITH RESPECT TO THE SPECIFIC TAX AND OTHER IMPLICATIONS ARISING
OUT OF HIS OR HER PARTICIPATION IN THE SCHEME.



                                                                                                                         94
TAX IMPLICATIONS ON MUTUAL FUND

Birla Mutual Fund is registered with SEBI and as such, the entire income of the Fund is exempt from income tax under
Section 10(23D) of the Act. In view of the provisions of Section 196(iv) of the Act, no income tax is deductible at
source on the income earned by the mutual fund.


Distribution tax
The Mutual Fund is required to pay dividend distribution tax for dividend declared as follows:
1.    Open Ended & Closed Ended Equity Oriented Schemes – Nil.
2.    Other than Equity Oriented Schemes -
    a) @ 14.025 % (including a surcharge of 10% and an additional surcharge by way of education cess of 2
percent on the amount of tax plus surcharge) on dividend distributed to individuals and HUFs; and
    b) @ 22.44% (including a surcharge of 10% and an additional surcharge by way of education cess of 2 percent
on the amount of tax plus surcharge) on dividend distributed to persons other than individuals and HUFs.
(Equity Oriented Fund - Fund where the investible funds are invested by way of equity shares in domestic companies
to the extent of more than 65% of the total proceeds of such fund.)


Securities Transaction Tax
As per Chapter VII of the Finance (No. 2) Act, 2004 pertaining to STT, the STT shall be payable, wherever applicable,
as follows:
Sr.     Taxable Securities Transaction                                                Rate with effect Payable by
No.                                                                                   from 1/6/2006

1       Purchase of an equity share in a company or a unit of an equity oriented 0.125 per cent Purchaser
        fund, where (a) the transaction of such purchase is entered into in a
        recognized stock exchange; and (b) the contract for purchase of such
        share or unit is settled by the actual delivery or transfer of such share
        or unit.
2       Sale of an equity share in a company or a unit of an equity oriented 0.125 per cent Seller
        fund, where (a) the transaction of such sale is entered into in a
        recognized stock exchange; and the contract for sale of such share or
        unit is settled by the actual delivery or transfer of such share or unit.

3       Sale of an equity share in a company or a unit of an equity oriented 0.025 per cent Seller
        fund, where (a) the transaction of such sale is entered into in a
        recognized stock exchange; and (b) the contract for sale of such share
        or unit is settled otherwise than by the actual delivery or transfer of
        such share or unit.
4      Sale of a derivative, where the transaction of such sale is entered into in 0.017 per cent Seller
       a recognized stock exchange.
5      Sale of a unit of an equity oriented fund to the Mutual Fund.               0.25 per cent Seller
TAX IMPLICATIONS TO UNITHOLDERS
Exemption u/s 10(35)
As per the provisions of Section 10(35) of the Act, dividend income received in respect of units of a mutual fund
specified under Section 10(23D) of the Act is exempt from income tax in the hands of the recipient unitholders.

Long Term Capital Gains
Long-term capital gains in respect of Units, held for a period of more than twelve months, will be chargeable under
Section 112 of the Act, at concessional rate of tax, at 20% (plus applicable surcharge and education cess) (subject to
the exemption of long-term capital gains provided for in Section 10(38) of the Act, discussed elsewhere in this
Statement)
The following amounts would be deductible from the full value of consideration, to arrive at the amount of capital
gains:
-       Cost of acquisition of Units (as adjusted by Cost Inflation Index notified by the Central Government in case of
        long term capital gain) and
-       Expenditure incurred wholly and exclusively in connection with such transfer (excluding any sum paid
on account of STT)
                                                                                                                    95
Income tax on long-term capital gains on transfer of units shall, be limited to 10 per cent (plus applicable surcharge
and education cess) of the gains computed without the benefit of cost of indexation.

In case of resident individuals and Hindu Undivided Families, where taxable income as reduced by long-term capital
gains, is below the basic exemption limit, the long-term capital gains will be reduced to the extent of the shortfall and
only the balance long-term capital gains will be subjected to the flat rate of income-tax (plus applicable surcharge and
education cess).

As per Section 10(38) of the Act, any long-term capital gains arising from the sale of units of an equity-oriented fund
where such transaction of sale is chargeable to STT, shall be exempt from tax.

With effect from Assessment year 2007-2008, income by way of long term capital gain of a company shall be taken
into account in computing the Book profit and income-tax payable under Section 115JB (Minimum Alternate
Tax)[MAT].

Short Term Capital Gains
As per Section 111A of the Act, short-term capital gains on sale of units of an equity oriented fund where such
transaction of sale is chargeable to STT the short term capital gains shall be subject to tax at a rate of 10 per cent
(plus applicable surcharge and education cess). Further in case of resident individuals and HUFs where taxable income
as reduced by short -term capital gains, is below the basic exemption limit, the short-term capital gains will be reduced
to the extent of the shortfall and only the balance short term capital gains will be subjected to the flat rate of income-
tax (plus applicable surcharge and education cess).

LOSSESS ARISING ON S ALE OF UNITS
Under the provisions of Section 94(7) of the Act, loss arising on sale of Units, which are bought within 3 months prior
to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of the Unit holders to
receive income or additional units without any consideration, as the case may be) and sold within 9 months after the
record date, sh all be ignored for the purpose of computing income chargeable to tax to the extent of exempt income
received or receivable on such Units. Under the provisions of Section 94(8) of the Act, where any person purchases
units (‘original units’) within a period of 3 months prior to the record date, who is allotted additional units without any
payment and sells all or any of the original units within a period of 9 months after the record date, while continuing to
hold all or any of the additional units, then any loss arising on sale of the original units shall be ignored for the
purpose of computing income chargeable to tax. The amount of loss so ignored shall be deemed to be the cost of
purchase of the additional units as are held on the date of such sale.

Tax Deduction at Source
No income-tax is deductible at source, on any income distribution by the Mutual Fund under the provisions of Section
194K and 196A of the Act.
No income-tax is deductible at source from income by way of capital gains under the present provisions of the Act in
case of residents. However, the provisions of section 195 of the Act may apply to non-residents (other than Foreign
Institutional Investors and long-term capital gains exempt under section 10(38) of the Act).
                               ay
Accordingly income tax m have to be deducted at source in the case of a non- resident (other than foreign
companies) at the rate of 10% (plus applicable surcharge and education cess) on short-term capital gains referred to
in section 111A and at the rate of 30% (plus applicable surcharge and education cess) in case of short-term capital
gains (other than under section 111A), unless a lower withholding tax certificate is obtained from the tax authorities,
and at the rate of 20% (plus applicable surcharge and education cess) in case of long-term capital gains, unless a
lower withholding tax certificate is obtained from the tax authorities.
In the case of foreign companies the rate of tax to be deducted at source on short-term capital gains referred to in
section 111A would be 10% (         plus applicable surcharge and education cess) and at the rate of 40% (plus applicable
surcharge and education cess) in case of short-term capital gains (other than under section 111A), unless a lower
withholding tax certificate is obtained from the tax aut horities, and at the rate of 20% (plus applicable surcharge and
education cess) in case of long term capital gains, unless a lower withholding tax certificate is obtained from the tax
authorities.

Securities Transaction Tax
As per Chapter VII of the Finan ce (No. 2) Act, 2004 pertaining to STT, the STT shall be payable, wherever applicable,
as follows:
Sr.      Taxable Securities Transaction                                Rate with effect Payable by
No.                                                                    from 1/6/2006
1       Sale of a unit of an equity oriented fund to the Mutual Fund.  0.25 per cent Seller


                                                                                                                        96
Deduction under section 80C
As per section 80C, and subject to the provisions, an individual/HUF is entitled to a deduction from Gross Total
Income upto Rs. 1.00 lac (along with other prescribed investments) for amounts invested in any units of a mutual
fund referred to in section 10(23D) of the Act, under any plan formulated in accordance with such scheme as the
Central Government may notify.
TAX TREATY BENEFITS
An investor has an option to be governed by the provisions of the Act or the provisions of a Tax Treaty that India has
entered into with another country of which the investor is a tax resident, whichever is more beneficial.
i. Wealth -tax
Units of the Mutual Fund are not treated as assets as defined under Section 2(ea) of the Wealth-tax Act, 1957 and
therefore would not be liable to wealth-tax.
ii. Gift-tax
The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units of the Mutual
Fund would therefore, be exempt from gift-tax.


The above Statement of Possible Direct Tax Benefits / Consequences sets out the provisions of law in a summary
manner only and is not a complete analysis or listing of all potential tax consequences of the purchase, ownership and
disposal of mutual fund units. Investors/Unit Holders are advised to consult their tax advisors with respect to the tax
consequences of the purchase, ownership and disposal of mutual fund units.

Valuation Of Assets And Determination Of Net Asset Value (NAV)
1. Traded Securities

    •    Traded securitie s are valued at the last quoted closing price on The Stock Exchange, Mumbai (BSE).

    •    When the Securities are traded on more than one recognised stock exchange, the Securities shall be valued at
         the last quoted closing price on the stock exchange where the security is principally traded. The AMC will
         select the appropriate stock exchange, but the reasons for the selection would be recorded in writing. All
         scrips may be valued at the prices quoted on the stock exchange where a majority in value of the investments
         are principally traded.

    •    Once a Stock Exchange has been selected for valuation of a particular security, reasons for change of the
         exchange shall be recorded in writing by the AMC.

    •    When a security (other than debt securities) is not traded on any stock exchange on a particular valuation
         day, the value at which it was traded on the selected stock exchange, as the case may be, on the earliest
         previous day is used provided such date is not more than 30 days prior to valuation date.

2. Thinly Traded Securities

    •    Thinly Traded Equity / Equity related securities are those securities whose trade in a month, are both less
         than Rs 5 lakhs and the total volume is less than 50,000 shares. Non-Traded / Thinly Traded Equity Securities
         will be fair valued as per procedures determined by the AMC and approved by Trustee of Birla Mutual Fund, in
         accordance with the SEBI Regulations and related circulars.
    •
    •    A debt security (other than Government Securities) is considered as a thinly traded security if on the valuation
         date, there are no individual trades in that security in marketable lots (presently Rs 5 crore) on the principal
         stock exchange or any other stock exchange.
    •
3. Non-Traded Securities

    •    Non-traded Equity / Equity related securities are those securities when it is not traded on any stock exchange
         for a period of thirty days prior to the valuation date. Non-traded Equity Securities will be fair valued as per
         procedures determined by the AMC and approved by Trustee of Birla Mutual Fund in accordance with the
         SEBI Regulations and related circulars.

    •    When a debt security (other than Government Securities) is not traded on any stock exchange on a particular
         valuation day, the security is considered as 'Non Traded Security'. The value at which it was traded on the
         principal stock exchange or any other stock exchange, as the case may be, on the earliest previous day is
         used provided such date is not more than 15 days prior to valuation date. When a debt security (other than
                                                                                                                      97
         Government Securities) is purchased by way of private placement, the value at which it was bought is used
         for a period of 15 days from the date of purchase.

    •    Non-Traded / Thinly Traded Debt securities/ asset backed securities purchased with residual maturity of upto
         182 days are valued at cost (including accrued interest till the beginning of the day) plus the difference
         between the redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity
         period of the instrument. Non Traded / Thinly Traded Debt securities/ asset backed securities purchased with
         maturity greater than 182 days at the time of purchase, the last valuation price plus accrued interest is used
         instead of purchase cost.
    •
    •    Non-Traded/Thinly Traded Securities/Asset Backed Securities of over 182 days to maturity are valued in good
         faith by the Investment Manager on the basis of valuation principles laid down by SEBI. The approach in
         valuation of Non-Traded Debt Securities is based on the concept of using spreads over the Government
         Securities to arrive at the yields for the pricing of the Non-Traded Debt Security.
    •
    •    Investments in Money market instruments are valued on the basis of amortization (cost plus accrued interest
         till the beginning of the day plus the difference between the redemption value and the cost spread uniformly
         over the remaining maturity period of the instruments).

    4. Derivative Products

    •    The traded derivative shall be valued at market price in conformity with the stipulations of sub clauses (i) to
         (v) of clause 1 of the Eighth Schedule to the SEBI Regulations.

    •    The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded
         investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the SEBI Regulations.
Valuation in respect of Non Performing Assets
Valuation in respect of Non Performing Assets (Debt Securities) is done in accordance with “SEBI guidelines for
identification and provisioning for NPAs” issued vide circular dated 18th September, 2000 bearing reference no.
MFD/CIR/8/92/2000 as modified by SEBI circulars both dated 28th March, 2001 bearing reference no.
MFD/CIR/13/087/2001 as well as MFD/CIR/14/088/2001 and will form a part of this valuation policy.

Guidelines For Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds are given
hereunder:
(A) Definition of a Non Performing Asset (NPA)
An ‘asset’ shall be classified as non performing, if the interest and/or principal amount have not been received or
remained outstanding for one quarter from the day such income / instalment has fallen due.

(B) Effective date for classification and provisioning of NPAs :
The definition of NPA may be applied after a quarter past due date of the interest. For e.g. if the due date for interest
is 30.06.2000, it will be classified as NPA from 01.10.2000.

(C) Treatment of income accrued on the NPA and further accruals
    After the expiry of the 1st quarter from the date the income has fallen due, there will be no further interest
    accrual on the asset i.e. if the due date for interest falls on 30.06.2000 and if the interest is not received, accrual
    will continue till 30.09.2000 after which there will be no further accrual of income. In short, taking the above
    example, from the beginning of the 2nd quart er there will be no further accrual on income.

    On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized
    in the books of accounts of the Fund till the date, should be provided for. For e.g if interest income falls due on
    30.06.2000, accrual will continue till 30.09.2000 even if the income as on 30.06.2000 has not been received.
    Further, no accrual will be done from 01.10.2000 onwards. Full provision will also be made for interest accrued
    and outstan ding as on 30.06.2000.

(D) Provision for NPAs – Debt Securities.
Both secured and unsecured investments once they are recognized as NPAs call for provisioning in the same manner
and where these are related to close ended scheme the phasing would be such that to ensure full provisioning prior to
the closure of the scheme or the scheduled phasing which ever is earlier.
The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will not
have discretion to extend the period of provisioning. The provisioning against the principal amount or instalments
should be made at the following rates irrespective of whether the principal is due for repayment or not.

                                                                                                                              98
10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3 months form
the date of classification of the asset as NPA.
20% of the book value of the asset should be provided for after 9 months past due date of interest i.e 6 months from
the date of classification of the asset as NPA.
Another 20% of the book value of the assets should be provided for after 12 months past due date of interest i.e 9
months form the date of classification of the asset as NPA.
Another 25% of the book value of the assets should be provided for after 15 months past due date of interest i.e. 12
months from the date of classification of the asset as NPA.
The balance 25% of the book value of the asset should be provided for after 18 months past due date of the interest
i.e 15 months form the date of classification of the assets as NPA.
Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the prescribed
valuation method.
This can be explained by an illustration :
Let us consider that interest income is due on a half yearly basis and the due date falls on 30.06.2000 and the
interest is not received till 1st quarter after due date i.e. 30.09.2000. This provisioning will be done in following
phased manner :

10% provision             01.01.2001     6 months past due date of interest i.e 3 months form
                                         the date of classification of asset as NPA (01.10.2000)
20% provision             01.04.2001
20% provision             01.07.2001
25% provision             01.10.2001
25% provision             01.01.2002

Thus, 1 1/2; years past the due date of income or 1 1/4; year from the date of classification of the ‘asset’ as an NPA,
the ‘asset’ will be fully provided for. If any instalment is fallen due, during the period of interest default, the amount
of provision should be instalment amount or above provision amount, whichever is higher.

(E) Reclassification of assets :
Upon reclassification of assets as ‘performing assets’ :
1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in full.
2. T he asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly serviced
over the next two quarters.
3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis would be
credited at the time of receipt.
4. The provision made for the principal amount can be written back in the following manner :-
100% of the asset provided for in the books will be written back at the end of the 2nd calendar quarter where the
provision of principal was made due to the interest defaults only.
50% of the asset provided for in the books will be written back at the end of the 2nd calendar quarter and 25% after
every subsequent quarter where both instalments and interest were in default earlier.
5. An asset is reclassified as 'standard asset' only when both overdue interest and overdue instalments are paid in full
and there is satisfactory performance for a subsequent period of 6 months.

(F) Receipt of past dues :
When the fund has received income/principal amount after their classifications as NPAs ;
For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The asset will be
continued to be classified as NPA for these two quarters.
During this period of two quarters although the asset is classified as NPA no provision needs to be made for the
principal if the same is not due and outstanding
If part payment is received towards principal, the asset continues to be classified as NPA and provisions are continued
as per the norms set at (D) above. Any excess provision will be written back.

(G) Classification of Deep Discount Bonds as NPAs:
Investments in Deep Discount Bonds can be classified as NPAs, if any two of the following conditions are satisfied:
If the rating of the Bond comes down to grade ‘BB’ or below.
If the company is defaulting in their commitments in respect of other assets, if available.
Full Net worth erosion.
Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA. Full provision
can be made if the rating comes down to grade ‘D’

(H) Reschedulement of an asset :
In case any company defaults either interest or principal amount and the fund has accepted a reschedulement of the
schedule of payments, then the following practice may be adhered to :
                                                                                                                              99
(i) In case it is a first reschedulement and only interest is in default, the status of the asset namely, ‘NPA’ may be
continued and existing provisions should not be written back. This practice should be continued for two quarters of
regular servicing of the debt. Thereafter, this be classified as ‘performing asset’ and the interest provided may be
written back.
(ii) If the reschedulement is done due to default in interest and principal amount, the asset should be continued as
non performing for a period of 4 quarters, even though the asset is continued to be serviced during these 4 quarters
regularly. Thereafter, this can be classified as ‘performing asset’ and all the interest provided till such date should be
written back.
(iii)If the reschedulement is done for a second/third time or thereafter, the characteristic of NPA should be continued
for eight quarters of regular servicing of the debt. The provision should be written back only after it is reclassified as
‘performing asset’.

(I) Disclosure in the Half Yearly Portfolio Reports:
The mutual funds shall make scripwise disclosures of NPAs on half yearly basis along with the half yearly portfolio
disclosure.
The total amount of pro visions made against the NPAs shall be disclosed in addition to the total quantum of NPAs and
their proportion of the assets of the mutual fund scheme. In the list of investments an asterisk mark shall be given
against such investments which are recognized as NPAs. Where the date of redemption of an investment has lapsed,
the amount not redeemed shall be shown as ‘Sundry Debtors’ and not investment provided that where an investment
is redeemable by instalments, that will be shown as an investment until all instalments have become overdue.
Accrual of Expenses & Income:
All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this
purpose, while major expenses like management fees and other periodic expenses would be accrued on a day to day
basis, the minor expenses and income need not be so accrued, provided the non accrual does not affect the NAV
calculations by more than 1%.
Changes in securities and in number of Units
Any changes in securities and in the number of Units will be recorded in the books not later than the first valuation
date following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording
may be delayed up to a period of 7 days following the date of the transaction, provided as a result of such non
recording, the NAV calculation shall not be affected by more than 1%.
In case the NAV of the Scheme differs by more than 1%, due to non - recording of transactions, the investors or
Scheme as the case may be, shall be paid the difference in amount as follows:-
If the investors are allotted units at a price higher than NAV or are given a price lower than NAV at the time of sale of
their Units, they shall be paid the difference in amount by the Scheme.
If the investors are charged lower NAV at the time of purchase of their Units or are given higher NAV at the time of
sale of their Units, the AMC shall pay the difference in amount to the Scheme. The AMC may recover the difference
from the investors.
           o
The valuati n guidelines as outlined above are as per the prevailing SEBI Regulations and are subject to change from
time to time in conformity with changes made by SEBI.

Computation Of Net Asset Value:
The Net Asset Value (NAV) per Unit of the scheme will be computed by dividing the net assets of the respective
scheme by the 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 VIII of the SEBI Regulat ions, or such norms as
may be specified by SEBI from time to time.
NAV of Units under the scheme shall be calculated as shown below:

                                         + Current
                         Market or Fair             -    Current       Liabilities
                                        Assets
                         Value of the              and                Provisions
                                        (including
                         scheme’s                  (including           accrued
                                        accrued
                         Investments               expenses)
                                        income)

NAV (Rs) per Unit =       ——————————————————

                         No. of Units outstanding under the scheme


.


                                                                                                                             100
Accounting Policies & Standards
In accordance with Regulation 50 read with the Ninth Schedule to the SEBI Regulations, the Scheme shall follow the
accounting policies and standards stated below:

All investments will be marked to market and will be carried in the balance sheet at market value. However, since the
unrealised gain arising out of appreciation on investments cannot be distributed, provision will be made for exclusion
of this item when arriving at distributable income.

Dividend income earned by the Scheme shall be recognised, not on the date the dividend is declared, but on the date
the share is quoted on an ex-dividend basis. For investments which are not quoted on the stock exchange, dividend
income shall be recognised on the date of declaration.

In respect of all interest-bearing investments, income will be accrued on a day to day basis as it is earned. Therefore
when such investments are purchased, interest paid for the period from the last interest due date upto the date of
purchase shall not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. Similarly,
interest received at the time of sale for the period from the last interest due date upto the date of sale shall not be
treated as an addition to sale value but shall be credited to Interest Recoverable Account.

In determining the holding cost of investments and the gains or loss on sale of investments, the “average cost”
method shall be followed.

Transactions for purchase or sale of investments would be recognised as of the trade date and not as of the
settlement date, so that the effect of all Investments traded during a financial year are recorded and reflected in the
financial statements for that year. When investment transactions take place outside the stock market, for example,
acquisitions through private placement or purchases or sales through private treaty, the transaction would be
recorded, in the event of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay
the price or, in the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an
enforceable obligation to deliver the instruments sold.

Bonus shares to which the Scheme becomes entitled shall be recognised only when the original shares on which the
bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights entitlements shall
be recognised only when the original shares on which the right entitlement accrues are traded on the stock exchange
on an ex-rights basis.

An ‘asset’ shall be classified as non performing, if the interest and / or principal amount have not been received or
remained outstanding for one quarter from the day such income / installment has fallen due. After the expiry of the
1st quarter from the date the income has fallen due, there will be no further interest accrual on the asset. In short,
from the beginning of the 2nd calendar quarter there will be no further accrual on income.

Where income receivable on investments has accrued but has not been received for the period specified in the
                                                   y
guidelines issued by SEBI, provision shall be made b debiting to the revenue account, the income so accrued in the
manner specified by the guidelines issued by SEBI.

In a close -ended scheme, which provides to the unit holders the option for an early redemption or repurchase their
own units, the par value of the units has to be debited to Capital account and the difference between the purchase
price and the par value, if positive should be credited to reserves and, if negative, should be debited to reserves. A
proportionate part of unamortised initial issue expenses will be transferred to the reserves so that the balance carried
on that account is proportionate to the number of units remaining outstanding.

When in case of open-ended scheme units are sold, the difference between the Sale price and the face value of the
Unit, if positive shall be credited to reserves and if negative will be debited to reserves, the face value being credited
to the Capital Account. Similarly, when Units are Redeemed, the difference between the purchase price and face value
of the unit, if positive, shall be debited to reserves, and, if negative, shall be credited to reserves, the face value being
debited to the Capital account.

In case of open-ended scheme when Units are sold, an appropriate part of the Sale proceeds shall be credited to an
Equalisation Account and when Units are redeemed, an appropriate amount would be debited to Equalisation Account.
The net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalisation
Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Mutual Fund
but is only an adjustment to the distributable surplus. It shall therefore, be reflected in the Revenue Account only
after the net income of the Mutual Fund is determined.


                                                                                                                        101
The cost of investments acquired or purchased would include, brokerage, stamp charges and any charge customarily
included in the broker’s bought note. In respect of privately placed debt instruments any front-end discount offered
shall be reduced from the cost of the investment.

Underwriting commission shall be recognised as revenue only when there is no devolvement on the Scheme. Where
there is devolvement on the Scheme, the full underwriting commission received and not merely the portion applicable
to the devolvement shall be reduced from the cost of the investment.

The accounting policies and standards as mentioned above are in accordance with the Ninth Schedule of the SEBI
                                                                i
Regulations and are subject to change as per any changes n the SEBIRegulations. All other policies and standards as
specified therein, as well as any additions / modifications thereto as may be specified by SEBI from time to time shall
be adhered to while preparing the books of accounts and financial statements of the Mutual Fund.

Following the issue of the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds
by the Institute of Chartered Accountants of India (pursuant to the
Eleventh Schedule of the SEBI Regulations), net unre alised gain or loss in the value of investments is determined
separately for each category of investments. Further, the change in net unrealised gain / (loss), if any, between two
balance sheet dates is recognised in the revenue account. However, unrealized appreciation is reduced from the
distributable income at the time of income distribution.

13. GENERAL INFORMATION
13.1 Jurisdiction
The jurisdiction for any matters arising out of this Scheme shall reside with the courts in India.
13.2 Power to Make Rules
Subject to the prior approval of SEBI where necessary, the Trustee may, from time to time, prescribe such terms and
make such rules for the purpose of giving effect to the provisions of this Scheme with power to the Asset
Management Company to add to, alter or amend all or any of the terms and rules that may be framed from time to
time.
13.3 Power to Remove Difficulties
If any difficulty arises in giving effect to the provisions of the Schemes, the Trustee may do anything not inconsistent
with such provisions, which appear to it to be necessary, desirable or expedient, for the purpose of removing such
difficulty.
13.4 Schemes to be binding on Unitholders
The Trustee may, at time to time, add to or otherwise vary or alter all or any of the features, investment plans and
terms of the Schemes after obtaining the prior approval of SEBI and the Unitholders if required, in accordance with
the SEBI (MF) Regulations 1996 and the same shall be binding on each Unitholder and any person or persons
claiming through or under it as if each Unitholder or such person expressly had agreed that such features, plans and
terms should be so binding.
13.5 Books and Records
The books and records of the Mutual Fund will be maintained at its Head Office. The fiscal year of the Mutual Fund
ends on 31st March in each year.
Penalties, Pending Litigation Or Proceedings, Findings Of Inspections Or Investigation For
Which Action May Have Been Taken Or Is In The Process Of Being Taken By Any Regulatory
Authority
1) All cases of penalties aw arded by SEBI under the SEBI Act or any of its regulations against the Sponsor of the
   Mutual Fund or any company associated with the Sponsor in any capacity including the Asset Management
   Company, Trustee Company/Board of Trustees, or any of the directors or key personnel (specifically the fund
   managers) of the Asset Management Company and Trustee Company. The nature of the penalty must be
   disclosed. For Sponsor and its associates, other than the penalties as mentioned above, the penalties awarded by
   any financial regulatory body, including stock exchanges, for defaults in respect of shareholders, debenture
   holders and depositors shall also be disclosed. Additionally, penalties awarded for any economic offence and
   violation of any securities laws shall be disclosed.
    SEBI has imposed a penalty of Rs. 75,000/- on Birla Mutual Fund for non-compliance of disclosure requirements
    under Regulation 7(1) and (2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997
    pursuant to the acquisition of 1,61,200 shares (representing 5.01%of the paid up capital) of Subex Systems Ltd.
    on October 18, 1999 by the schemes of Birla Mutual Fund.
    The details of penalties awarded by financial regulatory bodies on Sponsores and its associates are given below:


                                                                                                                   102
a) A fine of Rs. 25000/- was charged against Birla Sun Life Securities Ltd. by National Stock Exchange of India
Limited for following:
    i)        Non Execution of Member Constituent Agreement and Know Your Client Forms- A fine of Rs. 10,000/-
(Rupees Ten Thousand) was levied.
    ii)     Incomplete Know Your Client Forms- A fine of Rs. 5,000/- (Rupees Five Thousand) was levied.
    iii)    Margin Money not collected- A fine of Rs. 10,000/-(Rupees Ten Thousand) was levied.
b) As regards Sun Life Assurance Company of Canada (Sun Life Financial), on February 5, 2004, one of its
Mutual Funds subsidiaries, Massachusetts Financial Services Company (MFS) reached settlements with federal and
state regulators related to administrative proceedings against it alleging false and misleading information in
certain MFS fund prospectuses regarding market timing and related issues. Under the terms of the settlements,
MFS neither admitted nor denied wrongdoing. As part of the settlement with the United States Securities and
Exchange Commission (SEC), MFS agreed to pay US$225 million to compensate certain fund shareholders, of
which US$50 million is a penalty, and agreed with the New Hampshire Bureau of Securities Regulation to pay an
administrative fine in the amount of US$1 million. MFS further agreed with the Attorney General of the State of
New York (NYAG) to reduce fees on the funds it advises by approximately US$25 million annually over the next
five years. In addition to steps MFS had previously adopted to reinforce its frequent trading policies and
procedures, MFS agreed to undertake a number of other governance reforms, including retaining an independent
compliance consultant, creating an internal compliance controls committee, establishing a code of ethics oversight
committee, and hiring a corporate ombudsman.
c) In November 2003, the SEC and Morgan Stanley DW, Inc. (Morgan Stanley) settled an enforcement action
against Morgan Stanley relating to the receipt of fees from certain Mutual Funds companies in return for preferred
marketing of their funds. MFS was one of the 14 fund companies reported to be on Morgan Stanley’s preferred
list. As a result, MFS has been under investigation by the SEC relating to its directed brokerage and revenue-
sharing arrangements with various distributors of its products, including Morgan Stanley. MFS is cooperating with
the SEC’s investigation, which is ongoing, and is pursuing a possible settlement of these allegations. MFS believes
that any settlement could include MFS being sanctioned and MFS’ payment of compensation or other financial
penalties.
(d) In September 2003, the SEC issued an order instituting and settling an administrative proceeding against
MFS, alleging that MFS did not have adequate internal policies relating to the prevention of misuse of non-public
information.
(e) The SEC and other regulators have conducted or are conducting investigations and examinations of certain of
Sun Life Financial’s affiliates relating to various issues including market timing and late trading of mutual fund and
variable insurance products, directed brokerage, revenue-sharing and other arrangements with distributors.
(f) Sun Life Financial’s United Kingdom operations continue to be subject to regulatory overview in the United
Kingdom, including reviews of past business sold, and the Company has regularly engaged in discussions with
United Kingdom regulators with respect to these and other matters. Sun Life Financial’s United Kingdom
operations may be subject to censure if it fails to satisfy the Financial Services A      uthority as to the scope and
conduct of these reviews. Sun Life Financial’s past business sold includes a variety of endowment products in the
United Kingdom. Endowment policies are sometimes sold to provide customers with a method of repaying
mortgage debt at the end of a mortgage term. There can be no assurance that United Kingdom regulators will
not, in the future, require providers of endowment products to bear some or all of the additional costs required to
ensure that such policies meet their target mortgage debts.
No Penalties have been awarded for any Economic Offences in case of AMC, Sponsors andTrustee Company.
2)     Any pending material litigation proceedings incidental to the business of the Mutual Fund to which the
Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC,
Board of Trustees /Trustee Company or any of the directors or key personnel is a party. Any pending criminal
cases against the Sponsor or any company associated with the Sponsor in any capacity including the AMC, Board
of Trustees/Trustee Company or any of the directors or key personnel should also be disclosed separately.
    There are no pending material litigation proceedings incidental to the business of the Mutual Fund to which
the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the Asset
Management Company, Trustee Company or any of the directors or key personnel is a party.
(a) Certain of the arrangements in Sun Life Financial’s run-off reinsurance operations are subject to litigation or
arbitration. In particular, Sun Life Financial has been engaged in arbitration proceedings in the United States and
in England with certain of the companies that have contracts to provide reinsurance to Sun Life Financial. In late
2003, Sun Life Financial initiated arbitration proceedings against its largest retrocessionaire. Those companies are
disputing their obligation to provide retrocession cover to Sun Life Financial under their respective contracts of
reinsurance. Other reinsurers of Sun Life Financial may institute similar proceedings. The liabilities of Sun Life
Financial under these arrangements are subject to measurement uncertainty, and therefore uncertainty about the


                                                                                                                 103
ultimate level of liability, but they are not expected to have a material adverse effect on Sun Life Financial’s
consolidated financial position.
(b) Since December 2003, Sun Life Financial and MFS, along with certain MFS funds and Trustees who serve on
the Board of Trustees of these MFS funds, have been named as defendants in purported class action lawsuits filed
in the United States seeking damages of unspecified amounts. The lawsuits were purportedly filed on behalf of
people who purchased, owned and/or redeemed shares of MFS funds during specified periods. The suits allege
that certain defendants permitted market timing and late trading in the MFS funds which allegedly caused
financial injury to the funds’ shareholders. All of these lawsuits seek an unspecified amount of damages. The
defendants are reviewing the allegations and will respond appropriately. Additional lawsuits based upon similar
allegations may be filed in the future.
(c) Sun Life and its subsidiaries are engaged in litigation arising in the ordinary course of business worldwide,
none of which is expected to have a material adverse effect on the consolidated financial position of Sun Life
other than those mentioned elsewhere in this section.
     As regards Criminal Cases, there is a Criminal case pending against Mr. N.N. Jambusaria, director of the AMC,
in his capacity as a non-executive director of some companies, from which he has since resigned. The cases
include criminal complaints filed by Dept. of Company Affairs against DCM Ltd. and Premier Automobiles Lt d. for
non-payment of dividend under section 207 of the Companies Act and cases filed under section 138 of the
Negotiable Instruments Act against DCM Ltd. and Aldrich Pharmaceuticals Ltd. Also, there are 2 cases relating to
disputed share issue/transfer against Mr. K.M. Birla in his capacity as Chairman of Grasim Industries Ltd. and as
ex-director of MRPL Ltd., and other executives, and the respective companies are contesting the same.
(d) Case no 2339/02 is pending in the Court of the Metropolitan Magistrate, Kanpur against Mr. K.M. Birla and Mr.
S.K. Mitra in their capacity as Director of erstwhile Birla Global Finance Limited (now merged with the Aditya Birla
Nuvo Limited) (BGFL) under sections 417, 418, 419 and 420 of the Indian Penal Code in relation to a hire
purchase transaction entered by BGFL. The proceedings at the Court of the Metropolitan Magistrate, Kanpur were
stayed by High Court at Allahabad vide its order dated October 16, 2003 on petition by BGFL. The stay is still in
force and there are no further developments in the matter.
(e) The Enforcement Directorate, Government of India has issued show cause notices to the erstwhile BGFL and
its officials for alleged non-compliance of provision of section 7(4) read with section 6(4) and section 6(5) and
section 49 of Foreign Exchange Regulation Act, 1973 in relation to irregular issuance of foreign exchange of US$
1,16,200 and US$ 1,07,800 to M/s Jairam Exports and M/s Vikas Exports. BGFL has submitted, that the alleged
contraventions, if any had been committed by junior employees of the company for their own benefit without any
knowledge or neglect of the Company or its Directors and therefore the proceedings may be dropped against
them.
(f) A criminal complaint under section 138 of the Negotiable Instruments Act, 1881 has been filed in the Court of
the Metropolitan Magistrate, Karkadooma, Delhi against BGFL and Mr. S. K. Mitra. BGFL has filed criminal revision
                                                                                            f
petition under Section 397 read with Section 399 of Criminal Procedure Code in the Court o Additional Sessions
Judge, Karkardooma, Delhi for setting aside the impugned order for issue of process against the BGFL dated
February 28, 2005 passed by the Court of Metropolitan Magistrate, Karkardooma, Delhi and for staying the
proceedings before the trial court. The matter is currently pending.
(g) There are two income tax cases of Birla Sun Life Asset Management Company Ltd pending with Appellate
authorities for Assessment Year 2002-03 and Assessment Year 2003-04 for tax aggregating to Rs. 6.81 cro res.
(h) There are eight cases pending before various Consumer Redressal Forums filed against the BGFL. The value
of the amount disputed / claimed aggregates to Rs.0.3737 Crores.
(i) BGFL has filed criminal complaints against M/s. Ramniaranjan Kedia Tourism Serivces Pvt Ltd and its
Directors (RNK) under section 138 of Negotiable Instruments Act 1881 in connection with the payments towards
hire purchase and loan facilities extended by BGFL to RNK. RNK have subsequently made an application for
initiating proceedings for prosecution of respondent/original complainant i.e. BGFL and others for contempt under
section 195 of Criminal Procedure Code. The application is pending disposal.
3) Any deficiency in the systems and operations of the Sponsor of the Mutual Fund or any company associated
with the Sponsors in any capacity including the AMC or the Trustee Company which SEBI has specifically advised
to be disclosed in the offer document, or which has been notified by any other regulatory agency, shall be
disclosed.
     No such cases.
4) Any enquiry/adjudication proceedings under the SEBI Act and the Regulations made thereunder, that are in
progress against the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity
including the AMC, Board of Trustees/Trustee Company or any of the Directors or key personnel of the Asset
Management Company shall be disclosed.
No such cases.

                                                                                                               104
Notes:
    1. Further, any amendments / replacement / re-enactment of SEBI Regulations subsequent to the date of the
    Offer Document shall prevail over those specified in this Offer Document.
    2. Notwithstanding anything contained in the Offer Document, the provisions of Securities and Exchange Board
    of India (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.




                                                                        For and on behalf of the Board of Directors of
                                                                      Birla Sun Life Asset Management Company Ltd.

                                                                                                     Sharmila Ranade
                                                                                                   Compliance Officer
Place: Mumbai
Date: November 30, 2006




                                                                                                                 105
                                 OFFICIAL POINTS OF ACCEPTANCE - AMC OFFICES
 lAHMEDABAD : 505, Abhijeet 5th Floor, Mithakali Six Road, Navrang pura, Ahmedabad-380009. • Tel.: (079)–6403553/48 l
BANGALORE : G-011, HM Geneva House, 14,Cunningham House Road, Bangalore –560052. • Tel.: (080)-22389991/2/3 l
BARODA : 3/A Sun, Third Floor, Commercial Complex, Opp Race Course Tower, Next to Citibank, Gotri Road, Baroda -
390007 • Tel.: (D) (0265)- 5582984 / 2986 l BHUBANESWAR : 77, Janpath, Kharvel Nagar, Bhubaneswar - 751001 • Tel.: (D)
                                                                                                           -C,
2533016 / 2533826 • Tel. : (674)-531521/264 • Fax : 2531521 l CHANDIGARH : SCO : 149-150, Sector : 9 Chandhigarh -
160 017 • Tel.: (D) (0172)-749172 - 73 • Fax : (0172)-749173 l CHENNAI : Kubers Towers Old No-42, 1st Floor Pantheon
Road, Egmore, Chennai –600008. • Tel.: (044)-52045003/28191681 l COCHIN : Casa Blanca, 2nd Floor, M G Road, Opp ICICI
Bank, Cochin - 682035 • Tel.: (D) 366817 / 383969 • Tel.: (484)-366817 / 383969 • Fax : 2383969 l COIMBATORE : 2nd
Floor, Thirumalai Towers, 723 A & B Avinashi Road, Coimbatore - 641018 • Tel.: (422)-5350262 / 64 l GO A : G 3, Sesa Ghor,
Patod Plaza, Panjim, Goa - 403001 • Tel.: (D) (0832)-2437628 / 29 • Fax : 2437629 l GUWAHATI : Orion Towers, 7, 8 1st
Floor, G S Road Guwahati, Assam - 781 005 • Tel.: (D) 2595020 • Tel.: (361)-2598273 • Fax : (0361)-2599273 l INDORE :
405,City Center, 570, M G Road, Indore - 452 001 • Tel.: (D) 5046304 • Tel.: (731)-5046789 / 0496 • Fax: 246123 l JAIPUR :
205 2nd Floor, Ganapati Plaza, M I Road, Jaipur - 302 001 • Tel.: (D) 367882 /372935 • Tel.: (141)-2372935 / 2367882 • Fax :
2372935 l KANPUR : 302 & 303 Krishna Tower, 15/63 Civil Lines, Kanpur - 208 001 • Tel.: (512)-2331116 / 1121 • Fax :
2331116 l KOLKATA : J.K.Millennium Centre, 2nd Floor, 46 D, J.L. Nehru Road, Kolkata – 700071. • Tel.: (033)-2288 2592/
2594/2595 l LUCKNOW : 103-B 1st Floor, Shalimar Square, 126/31, B N Road, Lalbagh, Lucknow - 226 001 • Tel.: (D) (0522)-
2294110 • Tel.: (0522)-2294111 • Fax : (0522)-2294111 l LUDHIANA : SCO : 124 , 3rd Floor, Feroze Gandhi Market, Adjacent
to Hotel Grewalz, Ferozepur Road, Ludhiana - 141001 • Tel. : (D) 2771217 • Tel.: (161)-5088847 • Fax : 5088848 l MUMBAI
(SALES OFFICE) : Turner Morrison Building, 1st Floor, 16,Bank Street, Fort, Mumbai 400 023. • Tel.: (022)-56379999 l
MUMBAI (HEAD OFFICE) : Ahura Centre, 2nd FloorTower ‘A’ 96/A-D, Mahakali Caves Road, Andheri (E), Mumbai–400
093. • Tel.: (022)-56928000 l NEW-DELHI : 801& 802 Ashoka Estate, 24,Barakhamba Road, Connaught Place, New -Delhi -
110001. • Tel.: (011)-23358636/23320831 l PATNA : 425/426 Ashiana Harniwas Complex, Dak Bunglow Road, Patna - 800 001
• Tel.: (612)-2207022/23 l PUNE : Kapil Towers ‘A’ 2nd Floor, Dr. Ambedkar Road, Nr. Sangam Bridge, R.T.O., Pune–411001.
• Tel.: (9520)-56011865/1866/1867 l SECUNDRABAD : Mayfair Complex, 1st Floor, S P Road, Secundrabad–500 003. • Tel.:
(040)-55311052/3580 l SURAT : M-8 & M-9, Mezzanie Floor, Jolly Plaza, Athwa Gate, Surat - 395001 • Tel.: (D) (0261)-
5581707/1708 • Fax : 2462753.
OFFICIAL POINTS OF ACCEPTANCE - CAMS INVESTOR SERVICE CENTERS
l AHMEDABAD : 402-406, 4th Floor, Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge,
Ahmedabad – 380006 Tel.: (079) 2642 4940, 2646 4929I IAjmer: Shop No. S - 5, Second Floor, Swami
Complex, Ajmer – 305 001. Tel.: (0145) 329 2040 l BANGALORE : No 8 Kempe Gowda Road, Second Floor ,
Mahaveer Shopping Complex, Bangalore - 560009 • Tel.: (080) -2225 9491, 2220 3157 l BHUBANESWAR :
101/7, Janpath, Unit - III, Bhubaneswar - 751001 • Tel.: (0674)- 253 4909, 253 5395 l CHANDIGARH : SCO
154-155,1st Floor, Sector 17 -C, Chandigarh - 160017 • Tel.: (0172) -2706 651, 2711 325 l CHENNAI :
Ground Floor, A & B Lakshmi Bhawan, 609, Anna Salai, Chennai - 600006 • Tel.: (044)-2829 5163, 2829
1549 l COIMBATORE : 66, Lokamanya Street (West), R. S. Puram, Coimbatore - 641002 • Tel.: (0422)-
25369575/76 l lDURGAPUR : SN - 10, Ambedkar Sarani,City Centre, Durgapur - 713216 • Tel.: (0343)-254
8190 I ERODE:            199/1, Brough Road, Near Sivaranjani Hotel, Erode - 638 001. Tel.: (0424) 320 7730,
320 7733.lG O A : No.108, 1st Floot, Gurudutta Building, Above Weekender, M. G. Road, Panaji - 403001 •
Tel.: (0832) -5645787 / 2424527 lI Gorakhpur: Shop No. 3, 2nd Floor, Cross Road, The Mall, A. D. Chowk
Bank Road, Gorakhpur - 273 001 Tel.: (0551) 329 4771. I Gurgaon :           2319, Block 3, 1st Floor, Opp. Air
Force Golden Jubilee School, Sector 14, Delhi Road, Gurgaon - 122 001. Tel.: (0124) 326 3763, 326 3763.
INDORE : Dalal Chambers, 101, Sagarmatha Apartments, 1st Floor, 18 / 7 M G Road,Indore - 452003 • Tel.:
(0731) -252 8609, 252 9261 l JAIPUR : G -III, Park Saroj, Behind Ashok Nagar Police Station, R-7,
Yudhisthir Marg, C -Scheme, Jaipur - 302001 • Tel.: (0141) 2220948 / 951 l KANPUR : G-27/28, Ground
Floor, City Centre , 63/2, The Mall, Kanpur - 208001 • Tel.: (0512)-230 6668, 230 6685 l KOCHI : 41/1617,
Rock Hill, First Floor, Banerji Road (North) Kochi - 682018 • Tel.: (0484) -238 0443 l KOLKATA : Lords
Building, 7/1, Lord Sinha Road, Ground Floor, Kolkatta - 700071 • Tel.: (033)-230582297 / 85 /                l
LUCKNOW : No.3.First Floor, Saran Chambers 1, 5, Park Road, Lucknow - 226001 • Tel.: (0522)-237309 l
LUDHIANA : Shop No. 20 -21 (Ground Floor), Prince Market, Near Traffic Lights, Sarabha Nagar Pulli,
Pakhowal Road, P. O. Model Town, Ludhiana - 141002 • Tel.: (0161)-501 7502, 241 0279 l MANGALORE :
6. First Floor, West Gate Terminus, Falnir Road, Opp. Unity Health Complex, Highlands, Mangalore - 575002
• Tel.: (0824) -2436567 / 5252525 l MUMBAI : Rajabahdur Compound, Ground Floor, Opp Allahabad Bank,
Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai - 400023 • Tel.: (022)-22702 414, 22702415,
22702416, 22622903, 22622904 l NAGPUR : 145 Lendra Park, Behind Shabari, New Ramdaspeth, Nagpur -
440010 • Tel.: (0712)-253 2447, 253          l NEW DELHI : Kanchanjanga, 304-305 III Floor, 18, Barakhamba
Road, New Delhi - 110001 • Tel.: (011)-2335 3831, 2335 3832, 2335 l PATNA : Kamlalaye Shobha Plaza (1st
Floor), Behind RBI Near Ashiana Tower, Exhibition Road, Patna - 800001 • Tel.: (0612) -2322 206 l PUNE :
Nirmiti Eminence, Off No. 6, I Floor, Opp Abhishek Hotel Mehandale Garage Road, Erandawane, Pune -
411004 • Tel.: (020) - 2545 9439 / 2545 9440 I SAMBALPUR:           Opp    Town    High    School,    Sansarak,
Sambalpur - 768 001. l S ECUNDRABAD : 102, 1st Floor, Jade Arcade, Paradise Circle, Secundarabad -
500003 • Tel.: (040)-5532 1531 / 32 l SURAT : Niva Apartments , Above Sagrampura - Rudarpura Co-O p
Bank, Bhatia Street, Nanpura, Surat - 395001 • Tel.: (0261) -246 4887 / 246 4679 / 246 2531 l VADODARA :
                                                                                                                       106
109, Silver Line, Beside World Trade Centre, Sayajigunj, Vadodara - 390005 • Tel.: (0265)-2225146,
2362412 l VIJAYAWADA : 40-1-68, Rao & Ratnam, Complex, Near Chennupati Petrol Pump, M. G. Road,
Labbipet, Vijayawada -10. VISAKHAPATNAM : 47/ 9 / 17, 1st Floor,3rd Lane, Dwaraka Nagar,
Visakhapatnam - 530016 • Tel.: (0891)-2598 875, 2540 175. WARANGAL:        F13,  1st  Floor,   BVSS
Mayuri Complex, Opp. Public Garden, Lashkar Bazaar, Hanamkonda, Warangal - 506 001. Tel.: (0870) 320
2063, 320 9927.

CAMS AS THE OFFICIAL POINT OF ACCEPTANCE FOR ELECTRONIC TRANSACTIONS
Computer Age Management Services Pvt Ltd. (CAMS), Registrar & Transfer Agents to Birla Mutual Fund having its
office at Rayala Towers, 158, Anna Salai, Chennai - 600 002, is an official point of acceptance for electronic
transactions received from specified banks, financial institutions, etc. (mobilized on behalf of their clients) with whom
Birla Sun Life Asset Management Company Limited (AMC) has entered or may enter into specific arrangements for
purchase / sale / switch of units. Additionally, secure Internet sites operated by CAMS will also be official point of
acceptance.




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