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Bharti AXA Focused Infrastructure Fund
An Open-ended Equity Scheme

Bharti AXA Focused Infrastructure Fund (BAFIF) has opened for ongoing purchases and redemptions at an NAV of 10.27 on March 10, 2010 (Face Value Rs.10/-).

We launched the fund, focused on “Core Infrastructure”, prior to the announcement of the Union Budget as we believed this sector would be a direct beneficiary of Budgetary reforms. In line with our expectations, one of the focus areas of the Budget was infrastructure development, which should enable the economy to return to and sustain its high GDP growth rate.

Some of the highlights of the Union Budget which we believe will be positive for BAFIF are as follows:

Planned allocation on infrastructure announced at Rs.1.74 trillion, 46% of the total plan outlay
Planned allocation for roads increased by 13.6%yoy to Rs.199 billion
Allocation for NHAI (National Highway Authority of India) increased by 10% to Rs.95 billion
Imposition of Clean Energy Cess of Rs.50/ton on coal (both domestic and imported)
Allocation for RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana focused on rural electrification) increased by 21% to Rs.55 billion
Allocation for power sector (excluding RGGVY) increased by 130% to Rs.51.3 billion
Government has budgeted receipts of approximately Rs.350 billion from 3G auctions

Some of the core infrastructure sectors that we are positive on:

Metals:	We are positive steel in particular and are focused on integrated players trading at cheap valuations or focused on players who offer operating leverage.
Realty:	We are positive real estate companies focused on Mumbai, Bangalore and Pune geographies and primarily focused on home segment. We are witnessing strong sales of housing in these markets and the momentum should sustain on account of buoyancy in IT and equity markets.
Contractors & Developers:	We are positive on port developers, companies that offer a play on coal as well as pure contractors and infrastructure developers. We believe that as markets open up for equity issuance and as external borrowing becomes easier, the space would see a re-rating in a scenario when the government tendering momentum is returning.

Portfolio Construct as on March 9, 2010

BAFIF is currently 90% invested (as on March 9, 2010) in equity and equity related securities. The allocation of the portfolio to core infrastru cture sectors is as follows:

BAFIF – A “Truly Focused” Infrastructure Fund

BAFIF 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:

Cement & Cement Products
Construction
Energy
Industrial Manufacturing
Metals
Services (Only Infrastructure related services e.g. Transportation)
Telecommunication
Financial Services (only those primarily engaged in financing infrastructure projects)

Automobiles
Banks & other Financial Services companies (other than those covered in above list)
Services (Other than Infrastructure related)
Chemicals
Consumer Goods
Fertilizers & Pesticides
Information Technology
Paper
Pharmaceuticals
Textiles

Scheme Features

Fund Name: Bharti AXA Focused Infrastructure Fund	Fund Type: An Open-ended Equity Scheme
Investment Objective: The Scheme seeks to generate long term capital appreciation through a portfolio of predominantly equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors. (However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme is not providing any assured or guaranteed returns.)	Fund Managers: Prateek Agrawal
Benchmark: BSE 100 Index	Plans / Options: Growth Option for capital appreciation Quarterly Dividend Option offering Dividend Re-investment and Dividend Pay-out facilities Regular Dividend Option offering Dividend Re-investment and Dividend Pay-out facilities
Current Expense Ratio (Effective date - February 15, 2010): 2.50%	Entry Load: Nil Exit Load: Nil
Special Features: --

Minimum Application Amount/ Number of Units

Minimum Investment	Minimum Investment Additional
Rs.5,000/-	Rs.1,000/-

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

Investments through SIP / STP

Daily SIP/STP	Minimum Installment Amount Rs.300/- and in multiples of Rs.100/- thereafter (e.g: Rs. 400/-, 500/-, 600/- etc)	Minimum Duration 1 month
Monthly SIP/STP	Rs.1,000/- and in multiples of Rs.100/- thereafter (e.g: Rs.1,100/-, 1,200/-, 1,300/- etc)	6 months

Statutory Details: Bharti AXA Mutual Fund has been set up as a Trust (under the Indian Trust Act, 1882) by AXA Investment Managers, Sponsor of the Fund. The Sponsor is not responsible for any loss resulting from the operations of the schemes beyond the contribution of an amount of Rs.1 lakh made by it towards setting up the Mutual Fund. Trustee: Bharti AXA Trustee Services Private Limited, a limited liability company. Investment Manager: Bharti AXA Investment Managers Private Limited, a limited liability company. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Scheme's objectives will be achieved and the NAV of the Plans under the Scheme may go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme(s) of the Mutual Fund. Investors in the Scheme are not being offered any guaranteed / assured returns. The name of the Scheme does not in any manner indicate either the quality of the Scheme, their future prospects or returns. Bharti AXA Focused Infrastructure Fund is an open-ended equity scheme. Investment Objective: The Scheme seeks to generate long term capital appreciation through a portfolio of predominantly equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors. (However, there can be no assurance that the investment objectives of the Scheme will be realized. Copies of the Scheme Information Document / Key Information Memorandum / Statement of Additional Information can be obtained at any of our Investor Service Centers or on AMC Website www.bhartiaxa-im.com. Mutual Funds Investments are subject to market risks. Investors are requested to read the Scheme Information Document / Statement of Additional Information / Addenda carefully before investing.

© Copyright Bharti AXA Investment Managers Private Limited, 2010. All rights reserved. Bharti AXA Investment Managers Private Limited, 51,
East wing, Kalpataru Synergy, Vakola, Santacruz (E), Mumbai - 400 055, E-mail: service@bhartiaxa-im.com

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