Bharti AXA Focused Infrastructure Fund

Here’s why you should participate in Bharti AXA Focused Infrastructure Fund

1. Core Infrastructure has been an outperformer

In order to analyze the performance of the focused infrastructure sectors as identified by us under Bharti AXA Focused Infrastructure Fund., we plotted the BSE 100 Index (broad diversified index) against an adjusted BSE 100 Index after removing all the companies that belong to non infrastructure sectors (identified by us as the sectors that Bharti AXA Focused Infrastructure Fund will not invest in). The results show that the core infrastructure sectors have returned a CAGR of 29% over the period Jan 1, 07 to Jan 4, 10 as compared to a CAGR of 10% for the BSE 100 over the same period. During this period, the Top 5 infrastructure funds (as shown in the graph), have given a CAGR of 13%.

History shows that focusing on core infrastructure has paid handsome dividends in the past. We believe this trend will continue in the coming years given the impetus on infrastructure investment both from the government as well as public-private partnerships.

Past Performance may or may not be sustained in the future. The above graph is for illustrative purposes only and in no way indicates or is providing any assurance of the possible returns from Bharti AXA Focused Infrastructure Fund.
# BSE 100 Index (adjusted for infra related sectors) is depiction of BSE 100 returns after removing the sectors in which Bharti AXA Focused Infrastructure Fund will not invest (as detailed in the page overleaf).
$ The portfolio composition and the benchmarks of the Top 5 Infrastructure Funds – shown in graph - may vary from that of Bharti AXA Focused Infrastructure Fund. The Top 5 Infrastructure funds have been selected on the basis of returns given by open-ended infrastructure funds for the period Jan 1,'07 to Jan 4,'10.

2. Going to school has never been more difficult

It takes really long to reach your destination everyday with Indian infrastructure lagging behind other countries. The adjacent table is just a proof of this fact. Morgan Stanley estimates that India has invested US $ 67.6 billion in FY 2009 (5.8% of the GDP) as against China’s estimated spend of US$ 389.6 billion (9% of the GDP).

3. The Government is committed towards Infrastructure Investments

The Indian Government has committed additional resources in the past few years. Between 11^th five year plan and 10^th five year plan, the growth for infrastructure development has grown by 145%, as shown in the adjacent table. Also, the Government is allowing foreign investments in many projects like energy, petroleum, telecommunications, transportation etc. This should help infrastructure investments to increase upto 9.22% of GDP by FY 2012.

4. Bharti AXA Focused Infrastructure Fund – A “Truly Focused” Infrastructure Fund

Bharti AXA Focused Infrastructure Fund has a clear mandate to invest only in specific sectors (as defined by AMFI) that are primarily engaged in infrastructure and related activities. As a result the fund will only invest across 8 sectors as defined below:

1. Cement & Cement Products
2. Construction
3. Energy
4. Industrial Manufacturing
5. Metals
6. Services (Only Infrastructure related services e.g. Transportation)
7. Telecommunication
8. Financial Services (only those primarily engaged in financing infrastructure projects)

Furthermore, the fund has gone a step further and also laid out the sectors that it will not invest in, namely the following:

1. Automobiles
2. Banks & other Financial Services companies (other than those covered in above list)
3. Services (Other than Infrastructure related)
4. Chemicals
5. Consumer Goods
6. Fertilizers & Pesticides
7. Information Technology
8. Paper
9. Pharmaceuticals
10. Textiles

Thus Bharti AXA Infrastructure Fund is truly focused only on core infrastructure.

5. Experienced Fund Manager with a proven track record

Prateek Agrawal is currently the Fund Manager of Bharti AXA Equity Fund & Bharti AXA Tax Advantage Fund and heads Equity Investments at Bharti AXA Investment Managers since October, 2007. Prateek is a PGDM from XIM-B and is experienced both on the sell and buy side during his career spanning 15 years. He started his career in research with SBI capital where he spent 10 years. He moved to ABN AMRO AMC in 2004 where he set up the research function. He then moved to fund management in 2005, and became Head - Equity in June 2006.

Fund Details:

Minimum Application Amount/ Number of Units

Investments may be made in multiples of Re.1/- (subject to minimum amount)

Investments through SIP / STP