SUNDARAM MONTHLY INCOME PLAN

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N. Sundaram Select Debt-5 year asset plan (Amount, Rs.) HISTORICAL PER UNIT STATISTICS 04-09-02 to 31-03-03 01-04-03 to 31-10-03 1. Date of allotment 04.09.2002 04.09-2002 Div. Grth. Qtly. Hf-yr. Ann. 2. NAV at the beginning (Rs.) 10.00 10.06 10.09 10.09 10.09 3. Transfer to reserves – – – – – 4. Dividend 0.04 0.058 – – – Div. Grth. Div. Grth. Qtly. Hf-yr. Ann. Qtly. Hf-yr Ann. 5. NAV at the end (Rs.) 10.06 10.09 10.09 10.09 – – – – 6. Absolute Return since inception) 0.90% – 7. Benchmark returns (Crisil Composite Bond Fund Index) 5.67% – 8. Net Assets at the end of the period (Rs. in crores) 0.001 – 9. Ratio of recurring expenses to Average Net Assets 0.20% – 10. Net income (per unit) 0.13 – O. Sundaram Select Debt-3 year asset plan (Amount, Rs.) HISTORICAL PER UNIT STATISTICS 04-09-02 to 31-03-03 01-04-03 to 31-10-03 1. Date of allotment 04.09.2002 04.09.2002 Div. Grth. Qtly. Hf-yr. Ann. 2. NAV at the beginning (Rs.) 10.00 10.17 10.30 10.30 10.30 3. Transfer to reserves – – – – – 4. Dividend 0.12 0.3 – 0.22 – Div. Grth. Div. Grth. Qtly. Hf-yr. Ann. Qtly. Hf-yr Ann. 5. NAV at the end (Rs.) 10.17 10.30 10.30 10.30 10.0979 – 10.3111 10.5686 6. Absolute Return (since inception) 3.01% 5.36% 7. Benchmark returns (Cirsil Liquid Fund Index) 2.85% 5.24% 8. Net Assets at the end of the period (Rs. in crores) 3.19 3.03 9. Ratio of recurring expenses to Average Net Assets 0.38% 0.51% 10. Net income(per unit) 0.30 0.27 P. Sundaram Select Debt- Short-term asset plan (Amount, Rs.) HISTORICAL PER UNIT STATISTICS 04-09-02 to 31-03-03 01-04-03 to 31-10-03 1. Date of allotment 04.09.2002 04.09.2002 Div. Grth. Wkly. Qtly. Hf-yr. Ann. 2. NAV at the beginning (Rs.) 10.00 – 10.24 10.44 10.44 10.44 3. Transfer to reserves – – – – – – 4. Dividend 0.20 0.2205 0.50 0.70 0.35 – Div. Grth. Div Grth. Qtly. Hf-yr. Ann. Wkly. Qtly. Hf-yr Ann. 5. NAV at the end (Rs.) 10.24 10.44 10.44 10.44 10.2603 10.1124 10.0951 10.4920 10.8984 6. Absolute Return (since inception) 4.48% 8.16% 7. Benchmark returns (Crisil Liquid Fund Index) 2.85% 4.97% 8. Net Assets at the end of the period (Rs. in crores) 18.39 113.74 9. Ratio of recurring expenses to Average Net Assets 0.71% 0.53% 10. Net income (per unit) 2.03 0.27 V. UNITS AND OFFER (a) Initial Offer of Units The initial offer period for the scheme will commence from 3rd December 2003 and close on 23rd December 2003. The Board of Trustees, however, reserves the right to extend or advance the closing date subject to the conditions that initial offer shall not be kept open for more than 30 days. During the initial offer period, units are offered at Rs.10/- and the entire amount is payable on application. The minimum targeted amount is Rs 1 crore. In accordance with SEBI Regulations, if the scheme fails to collect the minimum subscription amount of Rs.1 crore, the Fund shall be liable to refund the money to the applicants within six weeks from the date of closure of subscription list, by Registered A.D and by cheque or demand draft marked "A/c payee". Allotment of units in the scheme would be after the approval of the Board of Trustees. Allotment is assured to eligible applicants provided the applications are complete in all respects and in order. Allotment of units shall be completed not later than 30 days after the close of the Initial Offer Period. The despatch of certificates / account statements/ refund warrants (if any) will be made within six weeks from the date of closure of subscription list. The Account Statement shall be non-transferable and is a conclusive proof of the unit holder’s investment in the scheme. (b) Minimum Investment The minimum investment is Rs.5,000 /- and Re.1/- thereafter. (c) Who can Invest The following persons may apply for subscribing to the units of Sundaram Monthly Income Plan (subject, wherever appropriate, to subscription to units of mutual funds being permitted under relevant statutory regulations and their respective constitutions): 1. Resident Adult Individuals – (a) Singly or jointly (not exceeding three) (b) minors through their parents/ guardians 2. Non resident Indians (NRIs) on Non repatriation basis and Repatriation basis subject to RBI Regulations. 3. Hindu Undivided Family (HUF), in the name of the Karta; 4. An association of persons or a body of individuals whether incorporated or not. 5. Companies/Bodies Corporate/Public Sector Undertakings registered in India; 6. Banks and Financial Institutions 7. Charitable or Religious Trusts/ Wakf Boards or endowments and Registered societies (including registered co-operative societies) and private trusts, authorised to invest in units; 8. Army/Airforce/Navy/Para-military funds and other eligible institutions; 9. Scientific and/or Industrial Research Organisations authorised to invest in units; 10. Other associations, Institutions, Bodies etc., authorised to invest in the units It is expressly understood that the investor has the necessary legal authority/complied with applicable procedures for subscribing/redeeming the units. The AMC/trustee will not be responsible in case any transaction made by an investor is ultravires the relevant constitution /internal procedures. (d) How to apply during Initial Public Offering Application forms are available with all offices of Sundaram Asset Management Company Limited, Sundaram Finance Limited, Brokers, Agents, Investor Service Centres of CAMS and at all bank collection centres. Application forms complete in all respects, accompanied by the amount of investment by means of a cheque/demand draft are to be submitted at the specified collection centres before closure of the scheme. Complete list of collection centres is enclosed elsewhere. As per the directives issued by SEBI, it is mandatory for Applicants to mention their bank account numbers in their applications for purchase of units. Kindly retain the acknowledgement slip initialed/stamped by the collecting authority. (e) Subscription to the Units of the Scheme on ongoing basis with effect from 12th January 2004: All valid applications for purchase of units of this scheme received before 3.30 PM on any Working Day shall be valued based on the applicable sale price. Requests received after 3.30 PM will be treated as having been received on the next Working Day. Sale Price = Applicable NAV *(1+entry load) For example: NAV : Rs. 11.00 Entry Load : Nil (At present) Sale Price : 11* (1+0%) = Rs.11.00. Allotment is assured to all eligible applicants provided the applications are complete in all respects and are in order. However, the allotment of such units would be at the discretion of the Board of Trustees. The AMC/Mutual Fund reserves its right to accept or to reject in whole or in part any application not in accordance with the terms of the scheme, without assigning any reason. A fresh Account Statement will be despatched reflecting the updated holding of the unit holder after every transaction. Under normal circumstances, the Account Statement will be despatched within ten working days from the date of the transaction. (f) Mode of Payment The payment may be made by any of the following modes: (i) by a cheque payable locally and drawn on any bank which is a member of the bankers clearing house located at the place where the application form is submitted; or (ii) by demand draft payable at the place where the application form is submitted, from applicants residing at places where there is no collection centres for this scheme. (iii) In case of NRIs, Overseas Corporate Bodies and Persons of Indian Origin residing abroad payment may be made by Indian Rupee Drafts payable at Chennai, purchased abroad or by cheque/DD payable at Chennai, drawn on Non-resident (External) account, FCNR account maintained with the banks authorised to deal in Foreign Exchange in India. All cheques/ demand drafts should be drawn in favour of ‘Sundaram Monthly Income Plan’ and crossed ‘Account Payee only’. Please note that Cash, Stock Invest, outstation cheques/drafts, money orders and postal orders will not be accepted. (g) Refunds In accordance with the Regulations, if the scheme fails to collect the minimum subscription amount of Rs.1 crore, during the initial offer period the Fund shall be liable to refund the money to the applicants. Further, refund of application money to applicants whose applications are invalid for any reason whatsoever, will commence immediately after the allotment is completed. Refunds will be completed within six weeks of the close of the Initial Offer Period. If the Fund refunds the amount after six weeks, interest @ 15% per annum shall be paid by the AMC. Refund orders will be marked 'Account Payee Only' and drawn in the name of the sole/first applicant. All refund cheques will be sent by Registered Post A.D. It is mandatory for applicants to provide their bank name, branch name and account number in their application for purchase/redemption of units. (h) Repurchase of Units The units can be offered to Sundaram Mutual Fund for repurchase on any Working Day at NAV related prices with effect from 12th January 2004. The repurchase requests can be sent to specified investor service centres or to the corporate office of the AMC or to the Registrar. Unit holders have the option to exercise repurchase for a minimum of Rs.500 /- and any amount thereafter. All repurchase requests received before 3.30 PM on any working day at the notified centres will be valued on the applicable repurchase price, subject to the repurchase requests being complete in all respects. Requests received after the cut off time will be treated as having been received on the next Working Day. (i) Repurchase Price The Repurchase Price will be at the Net Asset Value per unit on the Valuation Date and reduced by Exit Load, if any. For example, Applicable NAV : Rs. 11.00 Less : Exit Load (subject to revision) : 0.50% Repurchase price (Applicable NAV * (100- exit Load)/100 : Rs.10.945 (j) Listing As the fund stands ready to buy back the units of this scheme on any working day, it is not proposed to list the units of this scheme on any stock exchange. (k) Transfer The units of Sundaram Monthly Income Plan are freely transferable by act of parties or by operation of law. For effecting a transfer the applicable transfer form(s) shall be duly stamped and signed by all the unit holders and submitted along with the relevant unit certificate(s). The Asset Management Company shall on production of instrument of transfer together with the relevant unit certificates, register the transfer and return the unit certificates to the transferee within thirty days from the date of lodgement of transfer request at the office of the Registrar. (l) Transmission Units under the scheme may be transmitted, after completion of the necessary formalities in the name(s) of the person(s) becoming entitled to the holdings in the event of the death of the unit holder(s). However, the Asset Management Company shall have the right to waive the fulfillment of any or all of the formalities relating to transmission. (m) Switching Unit holders will have an option to switch all or part of their investments in the scheme to any other scheme of Sundaram Mutual Fund, which is available for investment at that time. The switch will be effected by way of a repurchase of units and a reinvestment of the proceeds in another scheme(s). Accordingly, to be effective, the switch must comply with the repurchase rules of this scheme and the issue rules of the other scheme (e.g as to the minimum number of units that may be repurchased or issued, load etc.) The price at which the units will be switched out of the scheme will be based on the prevailing repurchase price and the proceeds will be invested in another scheme(s) at the prevailing public offering price for units in that scheme. 6
(n) Suspension of Sale/ Repurchase of units: The sale/repurchase of the units of the scheme may be suspended temporarily or indefinitely under any of the following circumstances: • During the period of Book closure, if any • Stock markets stop functioning or trading is restricted • Periods of extreme volatility in the stock markets, which in the opinion of the Investment Manager is prejudicial to the interest of the unit holders. • A complete breakdown or dislocation of business in the major financial markets • Natural calamities • Declaration of war or occurrence of insurrection, civic commotion or any other serious or sustained financial, political or industrial emergency or disturbance. • SEBI, by order, so directs. In the above circumstances, the time limits indicated, for processing requests for purchase and repurchase of units will not be applicable. Suspension or restriction of repurchase / redemption facility shall be made applicable only after the approval from the Board of Directors and the Trustees. The approval from the AMC Board and the Trustees giving details of circumstances and justification for the proposed action shall also be informed to SEBI in advance. (o) Nomination Facility In terms of Regulation 29A of SEBI Mutual Fund Regulations, the AMC will provide an option to investors, being individuals, to nominate a person in whom the units will vest upon the death of the investor. Joint holders may together nominate a person as a nominee. It must be understood that by providing this facility, the AMC is not declaring the nominee as the person entitled to the units upon the death of unit holder nor does the AMC purport to confer or grant any rights other than those available under law to the nominee. The nominee receives the units (subject to the rights of any subsisting charge holder) only as an agent/ trustee of the person who is entitled to them under law. Where nominee is a minor, the details of parent/ guardian need to be furnished. Only an individual provided he/ she is otherwise not disqualified to own the units could be a nominee. Transmission of units (subject to the rights of any charge holder) to the nominee will constitute full discharge of the obligations of the AMC/ trustee, towards the estate / legal heirs / successors of the deceased unit holder, The nomination facility is subject to applicable laws. Investors are requested to comply with the prescribed procedures to avail this facility, the details of which are available with the R&T agent. (p) Duration of the scheme Sundaram Monthly Income Plan is an open-ended scheme (with no assured returns), and as such it would have a perpetual duration. However, in terms of the SEBI regulations, this scheme may be wound up earlier after repaying the amount due to the unit holders: 1. If on the happening of any event which, in the opinion of the Board of Trustees, requires this scheme to be wound up; or 2. If 75% of the unit holders of this scheme pass a resolution that the scheme be wound up; or 3. SEBI so directs in the interest of the unit holders of this scheme. When the scheme is to be wound up, the Board of Trustees shall give notice of the circumstances leading to the winding up of the scheme: (i) to SEBI and (ii) to the unit holders of this scheme by publication in the newspaper(s) as per prevailing guidelines. On and from the date of the publications of notice of winding up, the Board of Trustees or the Investment Manager, as the case may be, shall: 1. cease to carry on any business activities in respect of the scheme so wound up 2. cease to create or cancel units in the scheme 3. cease to issue or redeem units in the scheme VI. DETAILS OF PLANS OFFERED UNDER THE SCHEME 1. Options and Investment Plans offered under the scheme The scheme offers the investors the following investment options. a. Dividend Option i. Monthly ii. Quarterly iii. Half-Yearly b. Growth Option Re-investment of dividends is also available a) Dividend Option Under the dividend option dividends will be declared out of the distributable surplus as per SEBI regulations and paid to the investors holding the units on the record date fixed for this purpose. It is to be noted that while it is the intention of the trustee to pay out dividends at monthly/ quarterly/half-yearly periodicities, there is no assurance / guarantee with respect to the quantum or frequency or certainty of dividend distribution, which will depend on the performance of the scheme and availability of distributable surplus. The dividend pay out may also vary from month to month. The decision of the Trustees will be final in this regard. Unit holders opting for the dividend option of the fund will only receive dividends. All those unit holders whose names appear in the Register of Sundaram Monthly Income Plan, under the dividend option - monthly, quarterly and half - yearly as the case may be, as on the Record Date, will be entitled to the dividend. The record dates for the said options will be as follows: Options Record Date Monthly the last working day of each month or such other date as may be decided by the Trustees. Quarterly the last working day of March, June, September and December or such other date as may be decided by the Trustees. Half- yearly the last working day of March and September or such other date as may be decided by the Trustees. As per the Regulations, the Fund shall despatch to the unit holders, the dividend warrants within 30 days of declaration of dividend. dividends will be payable to those unit holders whose name appear in the Register of unit holders on the Record Date. The cheques/warrants will be drawn in the name of the sole/first holder and will be posted/mailed to the address as indicated in the application form. As per SEBI guidelines and in the interest of the investors to safeguard from loss or theft of dividend cheques/warrants, investors are requested provide the name of the bank, branch and account number in the application form. Such information would be incorporated in the cheque/warrants. Investors can also opt to receive dividend through the ‘Direct Credit Facility’ in specified branches of ABN Amro Bank, ICICI Bank, HDFC Bank, Standard Chartered Bank and IDBI Bank. The dividend payout will again be subject to the distribution tax payable by the Mutual fund as per the Income Tax Act or other Laws. The NAV of the dividend plans will stand reduced/adjusted to the extent of dividend distributed including dividend/distribution tax, if any, and other statutory charges as on the record date. The NAV of the growth plan shall remain unaffected. SHUT-OUT PERIOD After the closure of the Initial Offer Period, on an ongoing basis, investors should note that the AMC reserves the right to declare Shut-out period or closure period not exceeding 5 days at the end of each month / quarter / halfyear as the case may be, for the investors opting for payment of dividend under the respective dividend options. The declaration of the shut-out period is envisaged to facilitate the AMC to determine the units of the unit holders eligible for receipt of dividend under the various dividend options. Further, the shut-out period will also help in quick processing and despatch of dividend warrants. The AMC shall arrange to display at all investor service centres at least 10 days before the introduction. The shut-out period will be applicable for making investments in the scheme. During the shut-out period the trustees may stop/restrict any transactions such as purchases, redemptions and switches under respective dividend options. b. Growth Option Investors who would prefer capital appreciation can opt for the growth option. The income earned on their units will remain invested in the scheme and will be reflected in the Net Asset Value. Under this option, ordinarily, there will be no dividend pay outs and the income earned will continue to remain invested/ deployed in the scheme and the movement in the NAV will reflect the growth. Investors are required to tick the appropriate box in the application form indicating their option. If they omit to excercise their option, the default option will be monthly dividend payout. Dividend reinvestment Investors opting for dividends may choose to reinvest the dividend due to them in the scheme, at the first ex dividend NAV, Such payment will be treated as a constructive payment of dividend to the investor and a constructive receipt of the same amount from the investor for investment into the scheme. The AMC has been advised that such reinvested dividends, being similar to dividend payment will be exempted from tax. 2. SYSTEMATIC INVESTMENT PLAN (SIP) Investors can also benefit by investing specified rupee amounts periodically for a continuous period. This concept is called Rupee cost Averaging. This savings programme allows investors to save a fixed amount every month by purchasing additional units of the scheme. Therefore, the average unit cost will always be less than average sale price per unit irrespective of the market rising, falling or fluctuating. Example 1: RISING MARKET Month Investment (Rs.) Offer Price (POP) Units purchased 1 1000 11 90.909 2 1000 12 83.333 3 1000 13 76.923 4 1000 14 71.429 5 1000 15 66.667 Total 5000 65 389.261 Average Price (per unit) per month = Rs.13.00 (i.e Rs.65/5 months) Average cost per unit = Rs.12.84 (i.e Rs.5000/ 389.261 units) Example 2: FLUCTUATING MARKET Month Investment (Rs.) Offer Price (POP) Units purchased 1 1000 12 83.333 2 1000 9 111.111 3 1000 15 66.667 4 1000 12 83.333 5 1000 13 76.923 Total 5000 61 421.367 Average Price (per unit) per month = Rs.12.20 (i.e Rs.61/5 months) Average cost per unit = Rs.11.87 (i.e Rs.5000/ 421.367 units) Example 3: FALLING MARKET Month Investment (Rs.) Offer Price (POP) Units purchased 1 1000 13 76.923 2 1000 12 83.333 3 1000 11 90.909 4 1000 10 100.000 5 1000 9 111.111 Total 5000 55 462.277 Average Price (per unit) per month = Rs.11.00 (i.e Rs.55/5 months) Average cost per unit = Rs.10.82 (i.e Rs.5000/ 462.277 units) By investing a fixed amount of rupees at regular intervals, investors can take advantage of the benefits of Rupee Cost Averaging. 3. SYSTEMATIC WITHDRAWL PLAN (SWP) Unit holders of the scheme, who wish to withdraw a specified sum of money each month or quarter, can opt for this plan. SWP is ideal for those seeking regular inflow of funds. The minimum amount, which the unit holder can withdraw, is Rs.500. The unit holder may avail this plan by sending a written request to the AMC or to the Registrar. Withdrawals through SWP are effected as of the first working day of each month or quarter. The amount thus withdrawn by this option, will be converted into units at the applicable repurchase price on that date and will be subtracted from the units balance to the credit of the unit holder. However Exit load is not applicable for monthly/quarterly, withdrawals made under the Systematic Withdrawal Plan. The Fund may close a unit holder’s account if the balance falls below Rs.500/-, unit holders may change the amount indicated in the SWP, subject to a minimum amount specified above. The unit holder of the scheme may terminate the SWP on the written notice and it will terminate automatically when all the units of the unit holder are liquidated or withdrawn from the account. The Asset Management Company reserves the right to amend the operational details of SWP options as may be deemed fit. Such amendments will have prospective effect. The trustee may launch new plans, in the scheme, within an existing option. In such a case, in relation to subscriptions received during the initial subscription period, under such plans the trustee reserve the right to make allotment at the NAV of an existing option, on grounds of expediency, cost and interest of investors The fund reserves the right to amend, add or withdraw any special features in the interest of investors 4. UNCLAIMED REDEMPTION / DIVIDEND AMOUNT 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. 7
Page 1 and 2: SUNDARAM MUTUAL FUND KEY INFORMATIO
Page 3 and 4: (f) Investment Manager Sundaram Ass
Page 5: D. Sundaram Tax Saver ’98 (Amount
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Page 11 and 12: Sundaram Monthly Income Plan SERIAL

SUNDARAM MONTHLY INCOME PLAN

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