BRAND MUTUAL FUND UPDATED ADVERTISING BRIEF

1. CONTEXT (GENERAL BACKGROUND, RECENT TRENDS, OPPORTUNITIES) The Indian Asset Management business is at the cusp of defining change. In fact, mutual funds could stand at the forefront of Indias financial services, if industry growth is as rapid and robust as Indias own economic growth. The industry currently enjoys a cumulative growth rate of 29%, which is amongst the highest in the world. Mutual funds are sold by various distribution channels IFAs or independent financial advisers, national and regional distributors, banks and post offices. Right now, IFA sales are substantial. You can also invest in a mutual fund at an AMCs Investor Service Centre and via their website on a small scale. In the top eight cities, the middle class has begun to invest in mutual funds, increasing affluence is attracting a wave of customers from the next tire towns and new players are launching operations. So, what is the problem? Our mutual fund investor base is just over 6.7 million customers while an earner population of over 321 million remains untapped! This audience is pre-disposed to saving as a habit and therein lies huge opportunity. And why dont people invest? Basically, the biggest barrier is low financial literacy and lack of knowledge - everything about mutual funds is unknown - how to invest, why to invest, which fund to invest in, etc. Also, a deterrent to understanding mutual funds is the jargon that comes attached in a small font size and with a legal tone! Here is a brief picture of some issues facing the Indian mutual fund industry:

Over two-thirds of the Indian salaried work force do not know that mutual funds provide higher returns than bank deposits over the long term or that you can invest as little as Rs. 50 a month in a mutual fund via a SIP. For every 100 people who have invested either in a bank or postal deposit or life insurance, less than 3 people have also invested in mutual funds. Low household participation suggests a skew of savings being invested in low-returns channels. In the top eight cities, penetration is less than 15%. A perception of high risk surrounds mutual funds there could be instances where mutual fund investments have been used more as trading instruments (short term focus) rather than saving instruments (long term focus). Tax saving through mutual funds is still at a nascent stage. Just over 7% of mutual fund investors say tax savings is their main motive. There is a lack of innovation in mutual fund products. A top 20-city distribution focus, low profitability, negligible investment in market development activities such as advertising and investor education and low after-sales customer engagement characterize the business. With existing investors, key information sought during the investment process comprises: what are average returns, what is the past performance of the fund and what are the tax benefits. The good news is that 72% of first time investors buy on their own initiative. And advertising has a huge influence!

In summary, low customer awareness = low familiarity = low levels of comprehension = low knowledge of the benefits mutual funds = low levels of persuasion = low perception = low penetration.

2. WHAT ARE AMFIS OBJECTIVES AND STRATEGIC GOALS FOR THE INDUSTRY? AMFI or the Association of Mutual Funds in India was incorporated in August, 1995 as the apex body for Asset Management Companies (AMCs) registered with SEBI. A non-profit organization, AMFI functions under the supervision and guidelines of its Board of Directors and follows the principles of both protecting and promoting the interests of mutual fund companies as well as their unit holders. AMFIs strategic long term goal is Conversion. Its aim is to increase the investor base and create an investor pipeline that leads to a mutual fund investor in every household by:

Nurturing a culture of long term savings and wealth planning within the broader population by increasing the visibility of mutual funds and portraying their benefits. Building an infrastructure beyond the top-20 to the next-30 locations and beyond to enable distribution and servicing of customers. Building skill-sets amongst distributors to build higher customer engagement and customer loyalty. Conducting1000 investor education seminars across the country over the next six months covering 100,000 investors. (This effort has commenced and is well on track). Reduce risk perception of Mutual funds from the current 12% levels. Increasing penetration of mutual funds at least in urban households by 25% year-on-year.

3. WHAT IS THE KEY TASK AND EXPECTATIONS FROM THE AGENCY? 1. The key requirement is to develop high impact, mass market TV communication (a single commercial or a campaign) that creates an interest in mutual funds and a desire to consider investing in them. This kick-off stage of AMFIs category building effort is scheduled for November 2010. A PR calendar will also begin simultaneously. 2. Ongoing Advertising Strategy and Communications Plan: Mass media can include Print, Radio, the Internet (Digital advertising as well as Search and Social networking, etc to multiply the message online) and innovations. Media recommendations can also be made in brief though detailed media planning will be undertaken after the Creative pitch. 4. WHO ARE WE TALKING TO? (TARGET PERSON) Our advertising will talk to retail investors only and we are targeting Indias vast middle class: Our target person is a first time investor, a salaried earner who saves in bank deposits and other fixed rate savings. Male, SEC AB in the top 50 cities. Age Band: 25 55 years Here are some relevant points: 25 million of the urban workforce earns an annual income of over Rs 1 lakh. Less than 15% have invested in mutual funds whereas 82% have a life insurance policy Even with high income individuals with an annual income over Rs 5 lakhs - 77.4% of all investible surplus goes into bank and post office deposits.

For middle and lower income groups, this figure is as high as 87%.

As positive fallout of the advertising over the short term, the saliency that is built for the industry should bolster the confidence of current investors and distributors. .

5. ABOUT MUTUAL FUNDS IN BRIEF What is a mutual fund? Simply put, a mutual fund is nothing more than a coming together of a group of customers who pool in their savings to make up a large sum, which is then invested by the fund manager in the capital markets in stocks, debentures, treasury bills or other securities, depending on the mandate of a fund. As an investor, you are issued units in proportion to the money you have invested and your earnings are proportionate to the number of units you own. Is it really this simple? Yes, thats the long and short of mutual funds! Whats even more heartening to know is that the analysis and strategic thinking that goes into investing is not your worry. Thats what a fund manager does for you! Why invest in mutual funds and what are the different fund types? A mutual fund makes your money work harder to make more money for you. They help you create, protect and manage your wealth. There are different kinds of mutual funds, each with their own investment objectives and goals and so they can invest in different asset classes including gold, real estate, currencies and more, but there are four major fund types that we can distinguish:

Cash or money market funds: An appealing alternative to bank deposits because they offer slightly higher interest rates, liquidity or easy access to your money, and capital preservation. The fund manager invests in cash assets such as treasury bills and commercial paper. These funds are popular with corporate investors and individuals who wish to park their surplus money in a fund for a short period sometimes even a day! Debt funds: The aim of debt or income funds is to provide regular income. Debit funds generally invest in fixed income securities such as bonds, corporate debentures and gilts or government securities. Equity funds: Equity funds aim to provide capital growth by investing in the shares of companies. They are higher risk than cash debt funds but they offer higher returns as well and could be a good investment if you have a long-term perspective and can stay invested for at least three to five years. Balanced funds: As the name suggests, these funds invest in equities as well as debt securities to offer the best of both the worlds. The debt element acts as the safety net during dynamic periods in the market, while equities provide the potential for capital appreciation. Balanced funds could be suitable for investors who are looking for moderate capital appreciation.

(There are other sub-categories such as sector funds, etc., but it is not important to know them in detail at this stage. Please refer to the AMFI site if you want to know more). There are three important steps to choosing a fund: Define your investment objective: Pinpoint exactly what you are investing for. Define how long you can stay invested: If you need your money back in three months, an equity fund is probably inappropriate as equity funds offer the best potential for returns over the long term. Define your risk tolerance level: Select funds with an investment objective that mirrors your risk appetite and your financial goals. What are some benefits of mutual funds? Diversified risk: Mutual funds are diversification in action your money is spread across various companies or securities and so you do not have to rely on the performance of a single entity.

More for less: If you were investing independently in the debt or stock market, your money could probably afford just a few securities or stocks. When you invest in a mutual fund, your money affords a spread! Affordable and easy investing: You can invest in a mutual fund with as little as Rs 50 every month via a SIP or Systematic Investment Plan. Low transaction costs: A mutual funds total charges are very reasonable whereas as an individual, the cost of investing in different securities directly could get expensive. An expert on your side: When you invest in a mutual fund, the analysis and strategic thinking that goes into investing in the stock market is not your worry. Thats what a fund manager does for you. Convenient: You can invest directly with a mutual fund house via an adviser, at the companys Investor Service Centre or online at its website. Quick access to your money: Should you need your money at short notice, you can usually get it in two - four working days. Transparency: As an investor, you get regular updates on the value of your units or money - information on specific investments made by the mutual fund and the fund manager's strategy and outlook. Tax benefits: Over the years, tax policies on mutual funds have been favorable to investors. Investor protection: A mutual fund in India is registered with The Securities and Exchange Board of India or SEBI, which also monitors the operations of mutual funds to protect your interests.

6. BUDGET AND MEASUREMENT

The outlay for the kick-off TV advertising campaign is about 3 - 5 crores. Consumer research will measure the impact, effectiveness and results of advertising and so will the increase in retail sales.

7. PITCH PRESENTATIONS

The Pitch presentations will take place on 5th and 6th October 2010. The presentation should be strictly timed to 60 minutes: A company snapshot can take about 5 minutes followed by the presentation through about 45 minutes and a discussion of about 10 minutes. Company credentials in detail can be submitted in a CD and a hard copy on the day of the presentation. The TV Break of the Commercial will be November 2010.

8. APPENDICES 1. Power Point presentation sent earlier. 2. Agency Presentation Time Table.