AIG India Equity Fund

July 2007

Presented by

AIG Global Asset Management

Company (India) Private Limited

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 I. Plan for your future

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 Believe it or not ……… After 20 years
After 20 years…. “Once upon a time”

Your today’s monthly grocery bill of Rs 35,000 Rs. 92,800/-

will become…..

An IIM degree for your child which costs Rs. 10 Rs. 26.5 lakhs
lakhs today will cost……

Your dream home which costs Rs 50 lakhs Rs. 1.33 Crores

today will be more dearer to you

Assuming inflation @ 5% p.a

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Life will never be the same again…

“Affordable today” is “Unaffordable tomorrow” “Worthy today” becomes “Worthless tomorrow”

Amount required to maintain Worth of Rs. 100,000 after

the same lifestyle as today 20 years
1 2 0 ,0 0 0
after 20 years
1 0 0 ,0 0 0
1 0 0 ,0 0 0
1 0 00 0 0 92 ,86 5 7 8 ,3 5 3
9 00 0 0 8 0 ,0 0 0
8 00 0 0 7 2 ,7 62 6 1 ,3 9 1
7 00 0 0 6 0 ,0 0 0
5 7,0 11 4 8 ,1 0 2
6 00 0 0
5 00 0 0 4 4 ,67 0 3 7 ,6 8 9
35 ,0 00 4 0 ,0 0 0
4 00 0 0
3 00 0 0
2 0 ,0 0 0
2 00 0 0
1 00 0 0
-
0
Tod ay 5 10 15 20 To d a y 5 10 15 20

Because somebody is continuously

Prepare yourself to spend more on your
eroding the value your money, without
favorite items in future…
letting you know
Assuming inflation @ 5% p.a
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Therefore you need to save for….

 Capital Assets- House, Car

 Medical emergency

 Child’s education / Marriage

 Other family obligations

 Post Retirement expenses- To maintain at least present standard

of living
Every individual has one or more of the above
goals

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Time and Tide waits for none…. Everybody has limited time to Save

Time to Save
Earnings

Consumption

Savings

22 yrs 38 yrs 10- 20 yrs

Education Earning Years Post Retirement Years
Age- 22 yrs Age- 60 yrs

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 Have you planned for your future

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 Some people work for money

While Some make money work for them!!!

Which category would you prefer

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9
Rule is “Early to bed, Early to rise makes a person Healthy, Wealthy
& Wise”

You Your Friend

Age : 25 years Age : 25 years
Start: Today Start : at age 40
Invest : 5 years Invest : 20 years
Amount : Rs 5000 p.a. Amount : Rs 5,000 p.a.

So why are your investments an exception to this rule

14.00
11.76
12.00

10.00
Value of Investment

8.00
(Rs. Lakh)

6.00
You start investing Your Friend starts4.53
investing
4.00 3.15
You stop investing1.75
2.00 0.88
0.05 0.34 0.05
0.00
25 30 40 50 60

Age (in years)

Note- Returns are assumed to be 10% p.a.

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Because Time is ticking & every second counts.. Delays affect Wealth
Creation….
It Always Pays To Start Early & Save For Your Retirement

Just 5 years of
delay reduces
the wealth by
45.0 half!!!
38.3
40.0

35.0
(Rs. Lakhs)

30.0

25.0 22.8
20.0
13.4
15.0

10.0 7.7
4.2
5.0 2.1
0.0
25 30 35 40 45 50

If you start investing when you are (years)

Investment Gains from Investment

Rs. 1000 invested p.m. @ 10% p.a. till the age of 60 yrs

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Invest Regularly – Let the 8th Wonder work in your favor

70 lakhs

“Compound
Interest is the Most
23 lakhs Powerful force in
the Universe” …
Albert Einstein
8 lakhs

5% 10% 15%
Rs.1000 invested every month for 30 years

Even small amounts invested regularly can grow

substantially

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And please don’t predict the “Unforeseen”

“Predicting the market a folly”

19.11% 17.19%
17.13%

Hope that
you get it
right
more
often than
not!

Fixed investment at Fixed investment at

Fixed investment on
highest sensex value lowest sensex value
1st day of every month
every year – Worst day every year – Best day to
to buy buy
Investing in the BSE Sensex – 26 years

“Time in the market” is more important that

“Timing the market”…
Source: ICRA MFIE
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14
15
Is India an attractive destination?

Fundamentals still in place

By 2032, India will be world’s third largest economy, next only to the U.S. and China

Large pool of English speaking skilled labor available leading to MNCs setting facilities, generating
employment

Significant rise in the income levels continuing India on the consumption led growth trajectory

India remains attractive to Foreign Investors as indicated by strong FII flows

Inflow of Domestic savings to further drive the markets as equities continue to enjoy tax benefits

Indian corporates increasingly target world market – exploiting low cost base

Largest section of population in the age bracket of 20 – 60 yrs , which is the largest consumer group

Structural shifts in the population pattern will lead to India’s growth inline with global trends

Source : Brics Report

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 Only an Investor Understands Another

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 II. AIG India Equity Fund- An open ended equity
scheme

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 AIG India Equity Fund

Investment Objective

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified
portfolio of predominantly equity and equity-related securities including equity derivatives.

Asset Allocation Pattern

Instrument Range of Risk Profile

Allocation (% of
net assets)
Equity and equity related securities 80% to 100% High
Debt & money market 0% to 20% Low to Medium
securities/instruments/funds

Benchmark Index

BSE 100

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AIG India Equity Fund - Investment Strategy

 The Scheme follows an actively managed approach allowing it the flexibility to

pursue

opportunities across the entire market capitalization spectrum

 It has no biases towards any particular style, sector or market cap

 It continuously looks across the value and growth spectrum to keep a balance in

the

portfolio so as to maintain its performance over various market cycles.

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Key Drivers of our Investment Strategy: The India Story
Domestic Consumption
Infrastructure Investments
`KEY DRIVERS’
Outsourcing
Global Linkages Driving Efficiency
Rising Penetration of Financial Sector
Source: Goldman Sachs – Global Economics Paper No 152
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A generation “ free from the guilt of
consumption” is driving consumption
Rising affordability due to rising
incomes
Rising penetration of retail lending
Projected spend on infrastructure over
next 5 years – US$ 350 billion
Public- private partnerships mooted to
build physical infrastructure
BPO in IT and Pharma industries now
well established
Knowledge Process Outsourcing in
high end functions in finance and bio-
technology
Fall in trade barriers has increased
competition
Indian corporates have improved
efficiency to attain global
competitiveness
Financial services sector is
channelizing savings into investment
opportunities
Banking sector one of the strongest in
the region
Investment Process- “The EPIC way”
 Index and appropriate non-index ideas
 A filter is applied based on:
Total Investment Universe  Liquidity
 Quantitative screening
 Idea generation

 Exceptional Growth
 Stable Growth
Growth Category Analysis
 Cyclical Growth
 Mature

AIGGIG’s Research

 Buy/sell catalysts specific to growth

Fundamental Analysis category
 Ranking (1-5) by % to fair value
Global Sector
Brainpools

 Portfolio Construction:
Portfolio  Stock rating and percentage to
target
price
 Liquidity
 Risk monitoring/control

 Portfolio Monitoring:
India Team currently covers 84% of BSE-500 Index by  Target price, earnings revision

Market Capitalization alerts

 Periodic review
 Timely follow-up research
Data as of 15 April 2007.
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Our Value Proposition in India – Replicating AIGGIG’s Global Standards
RIGOROUS RESEARCH
 EPIC - Globally Integrated Equity
Research Platform
 Brainpools, MAGIC, GAAC, FIAAT
More than 500 investment
professionals with Over 100 Equity
professionals located across 20
cities worldwide
GLOBAL PERSPECTIVE
EPIC enables worldwide knowledge
sharing
and global comparisons
Investing from 44 asset
management
offices located across the globe
Using Local insight & knowledge to
drive investments
Only An Investor Understands Another.
Data as of 31 March 2007.
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ALIGNMENT
 As investors ourselves with
capital devoted to our own
investment products, we
share investment
objectives, responsibilities
and successes with our
clients.
EXPERIENCE
 AIG founded in 1919 in Asia
 Over 86 years of experience
in managing money
 Over 86 years insight and
understanding of Asia
RISK MANAGEMENT
 Given the heritage of our parent
company’s insurance businesses,
our sensitivity to risk is
embedded in exhaustive due
diligence and systematic
portfolio controls, which aim to
expose the most profitable risks
for our portfolios
 Senior Management committee
overseas all investments
Who are we?

AIG Investments - An Overview

 US $687.5 billion in assets under management

 More than 2,000 employees worldwide with over Equities

 Global, Country and
500 investment professionals with: Regional
 Large, Mid and Small
Cap
 Over 100 equity professionals located across  Emerging Markets
Fixed Income  Indexed
Private Equity
20 major cities worldwide  Global, Country and
Regional  Funds-of-Funds
 Investment Grade  LBO, Mezzanine, Secondary
 More than 235 Investment professionals for  Emerging Markets  Sponsored Funds
 Municipal Bond  Private Finance
Fixed Income
 High Yield/Leveraged
Loans
 200 Private Equity professionals located in  Private Placement Real Estate
Hedge Funds
Structured Products
  Global, Country and
24 locations across the globe  Hedge Funds-of-
Regional
Funds  Acquisition, Development
 Relative Value
and Redevelopment
 Real Estate operations in 30 offices  Long/ Short
 Core Plus, Value Added
 Macro/Commodity
worldwide with 500+ professionals and Opportunistic
Trading Advisor  Office, Retail, Residential
and Industrial

Data as of 31 March 2007.

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Our Parentage- American International Group, Inc. (AIG)

 One of the largest, most financially strong and stable financial

services groups in the world with USD 979 bn in own assets

 Started its operations in 1919 in Shanghai, China

 Ranked 9th in terms of Revenues in the 2006 list of Fortune 5001

companies

 Global businesses include General Insurance, Life Insurance &

Retirement Services, Asset Management and Financial Services

 Headquartered in New York

 Market capitalization of USD 181.80 Bn (NYSE) as on 06 July 2007

 Over 106,000 employees across member companies operating from

over 130 countries and jurisdictions

AIG’s unrivaled ability to combine local expertise with global networking capabilities
creates unique opportunities for our more than 65 million customers worldwide.

1 Fortune 500 is an annual ranking of America’s largest corporations published from the April 17, 2006 issue.
Data as of 31 March 2007 unless specified otherwise.

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 Investment Awards- Equities
AIG Japan Small Companies “Y” UCITS Fund AIG Japan Small Companies Fund plc

• Standard & Poor’s UK Fund Awards 2007- Awarded 1st • Standard & Poor’s Investment Fund Awards – Taiwan
place in the
Smaller Companies Japan Sector over One Year (out of 25 (2006, 2004) –
funds) Smaller Companies Japan in 3, 5, 10 years

AIG Global Emerging Markets “Y” UCITS Fund • Lipper Fund Award – Taiwan (2006, 2005) – Equity Japan
Small and Mid
• Standard & Poor’s UK Fund Awards 2007- Awarded 1st Caps in 3 years
place in the
Equity Global Emerging Mkts Sector over Five Years (out of
47 funds) • Standard & Poor’s Investment Fund Awards – Taiwan
(2005) –
AIG Asia Balanced Fund
Smaller Companies Japan in 3, 5, 10 years
• Lipper Funds Award Hong Kong (2006) – Mixed Asset
USD Aggressive • Lipper/ Banque de Luxembourg Wort Fund Award (2005)-
in 3, 5 years Japan Small
and Mid Caps in 3,5,10 years
AIG International Funds – Acorns of Asia Balanced Fund
• The Edge/Lipper Singapore Unit Trust Fund Awards AIG Europe Small Companies Fund plc
(2006, 2004) –
Mixed Asset Singapore Dollar Balanced in 3 years
• Lipper Fund Award – Taiwan (2005) – Equity Europe Small and
• The Edge/Lipper Singapore Unit Trust Fund Awards Mid Caps
(2003) – Mixed in 3 years
Asset Asia Pacific in 1 year
AIG International Funds – Japan Large Cap Equity Fund • SCMP/Standard & Poor’s Fund Manager of the Year Awards
(2003) –
• Benchmark/Lipper Fund of the Year Awards (2003) – Smaller Companies Europe in 5 years
Equity Japan
in 3 years
AIG Latin America Fund plc
AIG International Funds – Singapore Equity
• South China Morning Post Fund Manager of the Year Award
• AsianInvestor Achievement Awards (2006) – 10 year (2004) –
risk-adjusted
performance Equity Latin America in 3 years

AIG26Small Cap Canadian Equity AIG South East Asia Fund plc
• API Assessed Performance Money Manager Award
• AsianInvestor Achievement Awards (2003) – Asia ex-Japan
 Lets Invest In India.Together.

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 i. Disclosure
Name of the scheme: AIG India Equity Fund

Scheme Classification: An open-ended equity scheme.

Investment objective: The primary objective of the scheme is to generate long-term capital appreciation from a diversified portfolio
of predominantly equity and equity-related securities including equity derivatives.

Asset Allocation Pattern: Equities and equity related securities: 80%-100%; Debt and money market securities / instruments / funds:
0%-20%.
Terms of issue: Units of Rs. 10 per unit plus applicable entry load during the New Fund Offer (NFO) and at applicable NAV plus
applicable entry load thereafter. Offer document, Key Information Memorandum and Application Forms / Transaction Slips
available at the ISCs / distributors.
Load Structure:

Regular Plan: Entry load: 2.25% for purchase of units less than Rs. 5 crore; Nil for purchase of units equal to or greater than Rs. 5
crore; Exit load: For investments less than Rs. 5 crore - 1.00%, if redeemed within 1 year from the date of allotment; For
investments of Rs. 5 crore and above - 0.50% if redeemed within 6 months from date of allotment.

Institutional Plan: Entry load: Nil; Exit load: 0.50% if redeemed within 6 months from date of allotment.

General Services: Investors can contact any of the ISCs at 1800 425 3444. NAVs will be calculated and published on all Business
days.

Risk Factors: * The AMC has no previous experience in managing a mutual fund in India and the Scheme being offered is the initial
Scheme launched under its management. * Mutual funds, like securities investments, are subject to market risks and there is no
guarantee against loss in the Scheme or that the Scheme's objectives will be achieved. *As with any investment in securities, the
NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting the securities
markets. * Past performance of the Sponsor or mutual funds managed by the Sponsor or its affiliates does not indicate the future
performance of the Scheme. * Investors in the Scheme are not being offered a guaranteed or assured rate of return. The Scheme
does not guarantee or assure any dividend and also does not guarantee or assure that it will make any dividend distribution,
though it has every intention to make the same. All dividend distributions are subject to the investment performance of the
Scheme. * AIG India Equity Fund is the name of the Scheme and does not, in any manner, indicate the quality of the Scheme, its
future prospects or returns. * Investments in the Scheme will be affected by trading volumes, settlement periods, volatility, price
fluctuations, inability to sell securities, disinvestment of holdings of any unlisted stocks prior to target date of disinvestment, credit
risk and interest rate risk. *The Scheme and individual Plan(s) with a separate portfolio, if any, under the Scheme shall have a
minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). In case of
non-fulfillment with either of the above two conditions, specified SEBI Guidelines in this regard would be complied with.* Please
read the Offer Document before investing.

Statutory Details: AIG Global Investment Group Mutual Fund (‘the Fund’) has been established as a trust under the Indian Trusts Act,
1882, sponsored by AIG Capital Corporation (liability restricted to Rs. 1 lakh). AIG Trustee Company (India) Private Limited, a
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company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. AIG Global Asset
Management Company (India) Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is
the Investment Manager to the Fund.
ii. Disclosure … (Contd.)

AIG Investments is a group of international companies that provide AIG Global Investment Corp. (Switzerland) Ltd. is a wholly owned subsidiary
investment advice and market asset management products and services to of AIG Private Bank Ltd.
clients around the world. 
In the UK this document is intended for Intermediate Customers only and has
AIG Investments is a service mark of American International Group, Inc. (AIG). been approved by AIG Global Investment Corp. (Europe) Ltd., authorized and
Services and products are provided by one or more affiliates of AIG. regulated by the Financial Services Authority.
Readership: This document is intended solely for the addressee(s). Its AIG Global Real Estate Investment (Europe) Ltd. is an Appointed
content may be legally privileged and/or confidential. Representative of AIG Global Investment Corp. (Europe) Ltd.
Opinions: Any opinions expressed in this document may be subject to change Approved by AIG Global Investment Corp. (Ireland) Ltd. and AIG Global
without notice. We are not soliciting or recommending any action based on Investment Fund Management Ltd., both authorized and regulated by the
this material. Irish Financial Services Regulatory Authority (“IFSRA”).
Risk Warning: Past performance is not indicative of future results. Our
investment management services relate to a variety of investments, each of
which can fluctuate in value. The value of portfolios we manage may fall as
well as rise, and the investor may not get back the full amount originally
invested. The investment risks vary between different types of instruments.
For example, for investments involving exposure to a currency other than that
in which the portfolio is denominated, changes in the rate of exchange may
cause the value of investments, and consequently the value of the portfolio,
to go up or down. In the case of a higher volatility portfolio the loss on
realization or cancellation may be very high (including total loss of
investment), as the value of such an investment may fall suddenly and
substantially.
In making an investment decision, prospective investors must rely on their
own examination of the merits and risks involved.
Unless otherwise noted, all information contained herein is sourced with AIG
and/or AIG Investments internal data.
The content included herein has been shared with various in-house
departments within the member companies of AIG Investments and/or AIG
Private Bank Ltd., in the ordinary course of completion. All AIG Investments
member companies comply with the confidentiality requirements of their
respective jurisdictions.
Parts of this presentation may be based on information received from sources
we consider reliable. We do not represent that all of this information is
accurate or complete, however, and it may not be relied upon as such.
AIG Investments Web Address: www. aiginvestments.com

Rev. 7/13/07

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 Thank You

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