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Prudent Corporate Advisory Services — DSP BlackRock Dual Advantage Fund – Series 5 – 36M — Investor Presentation (July 2012)

9 slides from Prudent Corporate Advisory Services's investor presentation, Jul 2, 2012

1. Slide 1: DSP BlackRock Dual Advantage Fund – Series 5 – 36M

   DSP BlackRock Dual Advantage Fund – Series 5 – 36M NFO Period: July 02, 2012 – July 16, 2012 FOR PROFESSIONAL INTERMEDIARIES ONLY

2. Slide 2: The question on the investor's mind

   The question on the investor’s mind Markets are volatile Global uncertainty still prevails Inflation playing spoilsport What do I do with my money? FOR PROFESSIONAL INTERMEDIARIES ONLY 2

3. Slide 3: Where are we now?

   Where are we now? Equity Fixed Income  We expect economic growth to remain subdued for the first half  RBI initiated repo rate and CRR cuts in April to combat signs of (till September) of the financial year (FY2013) due to the lack of weakening growth, but is focusing now in inflationary pressures

4. Slide 4: DSP BlackRock Dual Advantage Fund – Series 5 – 36M (Scheme)

   DSP BlackRock Dual Advantage Fund – Series 5 – 36M (Scheme) What is this Scheme?  An income scheme that seeks to offer stability of fixed income while combining the likely upside potential of equity markets  Equity allocation to be invested in long-dated index options in order to benefit from the

5. Slide 5: How does it work?

   How does it work? The Scheme is a hybrid portfolio whose investment allocation is as follows  Debt – Debt allocation to be invested in instruments that could provide superior risk-adjusted returns – The maturity of the underlying securities will be on or before the maturity date of the Scheme in or

6. Slide 6: How is it different from other hybrid funds?

   How is it different from other hybrid funds? DSP BlackRock Dual Monthly Income Fixed Maturity Plans Balanced Funds Advantage Fund Plans (MIP) (FMP) Type Close-ended Open-ended Open-ended Close-ended Debt exposure Equity participation1 NA Equity downside risk2 NA Interest rate risk Legend - Low - Hig

7. Slide 7: How does a hybrid strategy using options work?

   How does a hybrid strategy using options work?  Option specifications – Type: Long-dated equity index call option – Expiry: The Scheme will invest in long-dated options whose expiry is closest (but earlier) to the maturity date of the Scheme – Strike price: The strike price of these options will be

8. Slide 8: Illustration of returns for a hybrid equity strategy using options

   Illustration of returns for a hybrid equity strategy using options Scenario 1 Scenario 2 Scenario 3 Initial portfolio value (A) 100 100 100 Debt allocation (B) 80 80 80 Yield on debt portfolio (indicative) 9.4% 9.4% 9.4% Returns from debt allocation (C) 24.8 24.8 24.8 Equity allocation* (E = A – B –

9. Slide 9: Disclaimers

   Disclaimers Investment Objective: The primary investment objective of DSP BlackRock Dual Advantage Fund – Series 5 – 36M (DSPBRDAF – S5 – 36M) is to generate returns and seek capital appreciation by investing in a portfolio of debt and money market securities. The scheme also seeks to invest a porti

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