BSL EqLinked FMP Presentation

The Great India Story…
30‐Jun‐08
Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing. Page 1
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Birla Sun Life Mutual Fund
Presents…
Presents
Birla Sun Life Equity Linked FMP

(A Closed End Structured Debt Scheme)
Mutual Fund investments are subject to market risk. Please read the Scheme Information Document carefully before investing.
Equity Linked Debenture
Principal
Bond
P t ti
Protection
Equity Linked
Debentures
(ELD)
Equity
Call Option
Participation
9 Equity linked debentures are non convertible debentures

9 Coupon or returns are linked to the movement of any specific equity index
such as S&P CNX Nifty or any/group of equity shares
9 Bond: Provides for Principal Protection
9 Call Option: Provides the Exposure to Equity Index / Stock
Risk-Return Profile
Returns
Equity
ELD
FMP
Risk
Market Linked Returns @

Controlled Level of Risk
The Advantage
Traffic rules have changed for your investments vehicle…

A new lane for accelerated growth with controlled risk levels
Market Goes Up
You Profit with Index Linked Returns
Stable Market
Index Linked Returns with NO Downside Risk*
Market Goes Down

You Don’t Lose Your Initial Corpus*
* Subject to the credit risk of the issuers of equity linked debentures

Typical Payoff Scenario
Return of Capital* Return of Capital + Equity Upside
if underlying index is below the starting level if underlying index is above the starting level
Nifty ELD
Conventional FMP
Starting Index Level
Profit / Loss
* Subject to the credit risk of the issuers of equity linked debentures ; The hypothetical illustration assumes 100% participation in the upside of the equity index
Typical Payout & Returns Analysis
Hypothetical Illustration
S&P CNX Nifty Return on Investment Total Payout Return on

Level S&P CNX Nifty (In Rs.) (In Rs.) ELD
7,500 50% 5,000 7,500 50%
7,000 40% 5,000 7,000 40% Upside
U id
Linked to
6,500 30% 5,000 6,500 30%
Equity
6,000 20% 5,000 6,000 20% Index
5,500 10% 5,000 5,500 10%
5,000 0% 5,000 5,000 0%
4,500 -10% 5,000 5,000 0%
4,000 -20% 5,000 5,000 0% You Don
Don’tt
Lose Your
3,500 -30% 5,000 5,000 0%
Initial
3,000 -40% 5,000 5,000 0% Corpus*
2 500
2,500 -50%
50% 5 000
5,000 5 000
5,000 0%
* Subject to the credit risk of the issuers of equity linked debentures; The hypothetical illustration assumes 100% participation in the upside of the S&P CNX Nifty
Concept of ELD…
• Participation Ratio:
• Participation ratio is the ratio at which ELD participates in the appreciation of the underlying equity index. Eg.
participation
ti i ti ratioti off 100% implies
i li that
th t a 10% increase
i i the
in th underlying
d l i equityit will
ill resultlt in
i a fifinall equity-linked
it li k d
coupon of 10%
• Knock Out Event / Level:
• Knock Out Event occurs if, any time during the duration of scheme, the index level has increased, as compared to
the index starting level, by more than the percentage as mentioned at the time of issuing of the ELD. Eg. If Knock
Out Level mentioned at the time of issue is 100% and Nifty starting level is 5,000. Then Event of Knock Out will
happen, if any time during the tenor of scheme Nifty rises by 100% to 10,000 level.
• Knock Out Coupon:
• Knock Out Coupon is a fixed coupon paid in the event of underlying index hitting the Knock Out Level. Eg. Knock
out level is 100% & knock out coupon is 50% then if the index hits the knock out level of 100%, investors would be
paid a fixed coupon of 50%
• Closing Value:
• Nifty Returns calculated based on the average of last 3 months. Eg. If tenor of the scheme is 36 months then the
Closing Value = (M34 + M35 + M 36)/3; where M34 = Closing Nifty Value at the end of 34th month, M35 = Closing
Nift Value
Nifty V l att the
th endd off 35th month
th & M36 = Closing
Cl i Nifty
Nift Value
V l att the
th endd off 36th month.
th
• All observations to be aligned to futures expiry date of the respective months in which the observations are made
BSL Equity Linked FMP
• Investment Strategy:
• Scheme will invest upto 100% of net assets in Equity Linked Debentures (ELDs) &
other Debt Instruments
• These debentures will be of investment grade and rated by an accredited rating agency
• Scheme will mature in line with the maturity of the debentures
• Scheme may also invest upto 30% of net assets in Options maturing in line with
maturity of the Plan.
• Overall strategy would be to Buy & Hold these instruments
• BSL Equity Linked FMP has flexible investment plans structured to match the
i
investors’
t ’ risk-reward
i k d objectives
bj ti
Series A – Aviator Plan (36 months plan)…
Jet Setting Upside of Equity Market#~ &

No Downside Risks* in case the Markets Go Down
# S&P CNX Nifty Index; ~ Subject to Terms & Conditions; * Subject to the credit risk of the issuers of equity linked debentures.
Series B – Gladiator Plan (21 months plan)…
Accelerated Upside of Equity Market#~ &

No Downside Risks* in case the Markets Go Down
# S&P CNX Nifty Index; ~ Subject to Terms & Conditions; * Subject to the credit risk of the issuers of equity linked debentures
Aviator Plan - Scheme Snapshot
Aviator Plan: Payoff Scenario
For jet setting upside of the equity markets#
• An Equity Linked FMP with maturity of 36 175%
months ELP
150%
• Participation Ratio of 140% - 145% 125% Nifty
• For instance, if Nifty rises by 10%, than you 100%
will get a coupon of 14% to 14.50% 75%
• K k t Level
Knockout L l off 190% to
t 200% & Knock
K k 50%
Knock Out Level
Out Coupon of 57% to 65% 25%
Knock Out Coupon @ 57%
• For instance, during the observation period Index Levels
-25%
5%
Starting Index Level
(monthly) if Nifty rises by 90% & above, than
-50%
you will get a fixed coupon of 57% only,

irrespective of the closing level of Nifty at the Profit / Loss / Coupon
end of the tenor of the scheme

# S&P CNX Nifty Index Please refer slide no. 16, 24, 26, 27
Key Features of ELD
Aviator Plan – Series A
M t it period:
•Maturity i d 36 months;
th Coupon
C (P ff) based
(Payoff) b d on movementt off Nifty.
Nift
•Indicative Payoff conditions#:
•Participation Ratio (PR): 140% to 145% of the Nifty Returns
•If Niftyy Returns are negative:
g
•Coupon = NIL
•If Nifty Returns are positive:
•Coupon = PR * Nifty Returns[(Closing Value – Initial Value) / Initial Value]
•Initial value: Nifty Level as on the date of investment in ELD
•Closing value: (M34 + M35 + M36) / 3
• Average of the closing Nifty value as on the last Thursday of 34M, 35M, and 36M
•Knockout Level: 190% to 200% of the Initial value
•Observation Dates for knockout: As on the last Thursday of each month start from the date of
allotment
•Coupon on Knockout: 57% to 65%
•All observations to be aligned to futures expiry of the respective months in which the observations
are made.
# Refer slide no. 27
Scenario Analysis – Aviator Plan
Calculations are based on the assumption that Initial Value of Nifty is 5,000.
Closing Value of Nifty Returns Knock Out Coupon

Nifty (%) Event Occurred
3,500 -30% NO NIL
4,500 -10% NO NIL
5,000 0% NO NIL
6,000 20% NO 28.00%
7,500 50% NO 70.00%
9 400
9,400 88% NO 123 20%
123.20%
10,500 110% YES 57%
Variable Coupon = [(Nifty Closing / Nifty Initial) - 1] X 140%
The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances. Past performance
including such scenarios may not reflect future performance. Source (Nifty Data) – www.nseindia.com; Computations – Internal.
Back-Testing – Aviator Plan
Structure vs. Nifty
300%
(Monthly 3 Years Rolling Returns – 179 Instances)
250%
Structure Outperforms Nifty 64%

200%
times & during underperformance
investors get fixed coupon @ 57%*
150%
100%
50%
ELD Nifty
0%
Jul-90
Jan-91
Jul-91
Jan-92
Jul-92
Jan-93
Jul-93
Jan-94
Jul-94
Jan-95
Jul-95
Jan-96
Jul-96
Jan-97
Jul-97
Jan-98
Jul-98
Jan-99
Jul-99
Jan-00
Jul-00
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
including such scenarios may not reflect future performance. * Fixed coupon may vary from 57% to 65%.
Source (Nifty Data) – www.nseindia.com; Computations – Internal.
Gladiator Plan - Scheme Snapshot
Gladiator Plan:
For accelerated upside of the equity markets #
Payoff Scenario
•An Equity Linked FMP with maturity of 21 months

•Participation Ratio (PR) of 97% to 100% 60%
ELP
• For instance, if Nifty rises by 10%, then you will get a 50% Nifty
coupon of 10% 40%
• Minimum coupon of 12.25% i.e. investor will earn a 30%
maximum of 12.25% or PR * Nifty; whichever is 20%

Knock Out Level
higher. 10%
12.25% Knock Out Coupon @ 17%
•Knockout Level of 140% to 145% & Knock Out Coupon Index Level
-10%
of 17% to 19% Starting Index Level
-20%
• For instance, during the observation period (monthly) if Nifty
rises by 45% & above, then you will get a fixed coupon of
Profit / Loss / Coupon
17% only, irrespective of closing level of Nifty at the end of
the tenor of the scheme
# S&P CNX Nifty Index Please Refer to Slide No. 20, 24, 26, 27
Key Features of ELD
Gladiator Plan – Series B

M t it period:
•Maturity i d 21 months;
th Coupon
C (P ff) based
(Payoff) b d on movementt off Nifty.
Nift
•Indicative Payoff conditions#:
•Minimum Coupon: 12.25% absolute
•Participation Ratio (PR): 97% to 100% of the Nifty Returns
•IfIf Nifty
Nift Returns
R t are negative:
ti
•Coupon = 12.25%
•If Nifty Returns are positive:
•Coupon = MAX {12.25%, PR X Nifty Returns[(Closing Value – Initial Value) / Initial Value]}
Initial value:
•Initial al e Average
A erage of 4 observations
obser ations i.e.
i e Start Level
Le el (i.e.
(i e Nifty
Nift on the date of investment
in estment in ELD) and Nifty
Nift
level on the last Thursday of 1 , 2 and 3 month, with each reading floored at 95% of the start level.
st nd rd
•Closing value: (M16 + M17 + M18) / 3

• Average of the Nifty Index as on the last Thursday of 16M, 17M, and 18M
Knockout Level: 140% to 145% of the Initial value
•Knockout
•Observation Dates for knockout: As on the last Thursday of each month starting from the 4th month onwards
•Coupon on Knockout: 17% to 19%
•All observations to be aligned to futures expiry of the respective months in which the observations are made.
# Refer slide no. 27
Scenario Analysis – Gladiator Plan
Calculations are based on the assumption that Initial Value of Nifty is 5,000.
Closing Value of Nifty Returns Knock Out Coupon

Nifty (%) Event Occurred
3,500 -30% NO 12.25%
4,500 -10% NO 12.25%
5,000 0% NO 12.25%
5,500 10% NO 12.25%
6,000 20% NO 20.00%
6 900
6,900 38% YES 17%
7,500 50% YES 17%
Variable Coupon = [(Nifty Closing / Nifty Initial) - 1] X 100%
including such scenarios may not reflect future performance. Source (Nifty Data) – www.nseindia.com; Computations – Internal.
Back-Testing – Gladiator Plan
Structure vs. Nifty
250%
(Monthly 21 months Rolling Returns – 179 Instances)
200%
Structure Outperforms Nifty 57% times

150% & during underperformance investors
get fixed coupon @ 17%*
100%
50%
0%
ELD Nifty
-50%
Jul-90
Jan-91
Jul-91
Jan-92
Jul-92
Jan-93
Jul-93
Jan-94
Jul-94
Jan-95
Jul-95
Jan-96
Jul-96
Jan-97
Jul-97
Jan-98
Jul-98
Jan-99
Jul-99
Jan-00
Jul-00
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
including such scenarios may not reflect t future performance. * Returns may vary from 19% to 19.50%.
Source (Nifty Data) – www.nseindia.com; Computations – Internal.
Equity Linked FMP vs. other Instruments
Gladiator Conventional Fixed

Features Aviator Plan Equity#
Plan 3 Year FMP Deposits
Tenor 36 Months 21 Months 36 Months 36 Months 36 Months

Equity Participation Yes Yes Yes No No
140% to
t
Participation Ratio 97% to 100% - - -
145%
Nature of Return LTCG LTCG LTCG Income Income

Liquidity** Quarterly Quarterly Any Time Any Time Any Time
Pre Tax Net Indicative Yield
- Minimum 0 00%
0.00% 12 25%
12.25% NA
N.A. 9 50%*
9.50%* 8 85%^
8.85%^
- Average 36.63%`` 15.39%`` 30.20% 9.50%* 8.85%^
`` Based on back testing results for the period July 1990 to March 2005
# Returns are based on average g pperformance of equity
q y diversified schemes as defined byy value research as on 31st Mayy 08.
* Current 3 Year FMP yields; ^ Current 3 Year FD Rates as offered by State Bank of India
** Subject to Exit Load/Charges
The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances.
Key Risk Factors
• Credit Risk – ELDs are issued by NBFCs & are subject to their credit risks
• Liquidity Risk – Liquidity in ELD is very limited & may not be marketable
• Interest Rate Risk – If the interest rates move up, investor may be subject to
significant price risk
• Market Risk – Payoff on ELD is linked to return from underlying equity index. If index
does not appreciate, returns to investor may be negligible.
Scheme Features
Type of Scheme A Close ended Structured Debt Scheme
Investment Objective The Scheme seeks to invest in short and medium term debt instruments with fixed and/or floating payouts linked to equity indices.
The Scheme may also undertake to invest in derivative contracts. These instruments will normally mature in line with the time profile
of the Scheme. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme
does not guarantee/indicate any returns
Asset Allocation
Debt instruments, Money Market 70% to 100%
Instruments and Securitized Debt
Derivative Options 0% to 30%
New Fund Offer Price Rs. 10 per unit
Date of opening of NFO Thursday, June 26th , 2008
Date of Closing of NFO Wednesday, July 23, 2008
Load Structure
Entry Load Retail Plan: Series A Series B
(NIL for direct applications) For Purchase / Switch-in of units less than Rs. 5 crores in value 2.25% 1.50%
For Purchase / Switch-in of units equal to / greater than Rs. 5 crores in value: NIL NIL
Institutional Plan:
For Purchase / Switch-in of units: NIL NIL NIL
Exit Load For Retail & Institutional Plan:
If repurchased on or before 365th day from the date of allotment: 2%
If repurchased after 365th day from the date of allotment, but before maturity date: 1%; If repurchased on maturity date: NIL
B h k Index
Benchmark I d CRISIL B
Balanced
l dFFundd IIndex
d
NAV Disclosure Once a week; Every Wednesday and on 1st business day of each calendar quarter.
Liquidity 1st Business Day of each calendar quarter (subject to applicable load)
Statutory Details
Statutory Details: Constitution: Birla Sun Life Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Aditya Birla
Nuvo Limited & Sun Life (India) AMC Investments Inc [liability restricted to seed corpus of Rs. 1 Lac]. Trustee: Birla Sun Life Trustee Company Pvt.
Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd.
Risk Factors: Mutual Funds & securities investments are subject to market risks & there can be no assurance or guarantee that the objectives of
the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme may go up or down depending
on the various factors & forces affecting capital markets & money markets. Past performance of the Sponsor / Investment Manager / Mutual Fund
does not indicate the future performance of the Scheme & may not necessarily provide a basis of comparison with other investments. Birla Sun
Lif Equity
Life E it Linked
Li k d FMP is
i only
l the
th name off the
th Scheme
S h & does
d not,t in
i any manner, indicate
i di t either
ith the
th quality
lit off the
th Scheme
S h or its
it future
f t prospectst
or returns. Scheme Specific Risk Factors: The Scheme should have a minimum of 20 investors & no single investor should account for more than
25% of its corpus as per SEBI guidelines. The Scheme is subject to credit risk, liquidity risk, interest rate risk & market risks. For further Scheme
Specific Risk Factors & other details please read the Scheme Information Document (SID) carefully before investing.
Disclaimers
*The back testing results in the previous slides are based on certain features of the structure of Equity Linked Debenture and assumptions. For details of
the same, please refer to slide no.16 & 20. Past performance including such scenarios may not reflect future performance. The back testing results are for
reference onlyy and a varietyy of market factors and assumptions
p mayy affect the results and the same do not reflect all ppossible scenarios. There is no
certainty that the parameters and assumptions used in the analysis can be duplicated with actual trades. Any reference rates or prices, which appear is
these results are not necessarily indicative of reference rates or prices. Although this information is obtained from sources we consider reliable, we do not
represent that it is accurate or complete.
Key features / Payoff conditions are indicative and are subject to change depending on change in market conditions and the issuers’ terms. The back
testing results are calculated based on the term sheets received from various issuers / potential issuers. For some reason, if the issuers / potential issuers
cannot issue the Equity Linked Debentures as per the term sheets received from them, the investment allocation, the return payoff or actual results could
be significantly different from the ones mentioned. The results could also vary significantly if there are not adequate number of issuers / instruments in the
market to subscribe to. Key assumptions: 96% investment in equity linked debentures in Series A and 97% in series B. The Fund returns are calculated
net of all expenses.
This document is meant for private circulation only and should not at any point of time be construed to be an invitation to the public for subscribing to the
units of Birla Sun Life Mutual Fund. Birla Sun Life Mutual Fund does not solicit any action based on the information contained in the document and does
not recommend any action based on the same. The information/graphs/charts contained in this document are based on certain assumptions and have
been compiled from sources, which Birla Sun Life Asset Management Company Limited (BSLAMC) believes to be reliable, but cannot guarantee its
accuracyy or completeness.
p Opinions
p expressed
p and facts referred to in this document are subject
j to change g without notice and BSLAMC is under no
obligation to update the same. Please read the SID carefully for scheme specific risk factors and other details before investing.
Thank You

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The Great India Story…

…Structured Products combining

Birla Sun Life Equity Linked FMP

9 Equity linked debentures are non convertible debentures

Market Linked Returns @

Traffic rules have changed for your investments vehicle…

Market Goes Down

* Subject to the credit risk of the issuers of equity linked debentures

Starting Index Level

S&P CNX Nifty Return on Investment Total Payout Return on

Jet Setting Upside of Equity Market#~ &

Accelerated Upside of Equity Market#~ &

• An Equity Linked FMP with maturity of 36 175%

• Participation Ratio of 140% - 145% 125% Nifty

• For instance, if Nifty rises by 10%, than you 100%

will get a coupon of 14% to 14.50% 75%

you will get a fixed coupon of 57% only,

end of the tenor of the scheme

Closing Value of Nifty Returns Knock Out Coupon

Structure Outperforms Nifty 64%

•An Equity Linked FMP with maturity of 21 months

coupon of 10% 40%

• Minimum coupon of 12.25% i.e. investor will earn a 30%

maximum of 12.25% or PR * Nifty; whichever is 20%

Gladiator Plan – Series B

•Closing value: (M16 + M17 + M18) / 3

# Refer slide no. 27

Closing Value of Nifty Returns Knock Out Coupon

Structure Outperforms Nifty 57% times

Gladiator Conventional Fixed

Tenor 36 Months 21 Months 36 Months 36 Months 36 Months

Nature of Return LTCG LTCG LTCG Income Income

Pre Tax Net Indicative Yield

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