Edelweiss Fund Insight: March 2010

Large-cap funds: Cash balances move downAbsolute cash balances with the large-cap fundsreduced by ~INR 1.7 bn over the previous month;currently at ~INR 7.95 bn against ~INR 9.68 bn inJanuary.With redemptions remaining muted, the decline in cashbalances can be attributed to fresh allocations that weremade during the month. Large-cap funds haveincreased their exposure considerably in the bankingspace over the previous month.Absolute cash balances account for ~6.2% of the totalcorpus of INR 128.50 bn.INR bn14121086Absolute cash balances and percentage cash221215191610119 916871376 10574Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Absolute Cash % Cash(%)Average cash percentage levels in the past six monthshave been ~7%.Large-cap funds currently hold ~6.20% of its corpus in cash compared with the past one-year average of 9.60%.AUM Cash & EquivalentScheme(INR bn) Feb-10 Jan-10Franklin India Bluechip 28 4% 6%DSPBR Top 100 Equity 25 7% 6%Reliance Equity-Ret 21 11% 13%Birla SL Frontline Equity-A 18 6% 13%Note: Large-cap fund universe comprises nine equity schemes (growth option)13