India’s

First

Funds

10 10

in your portfolioGet the Power of 10

Presenting

Motilal Oswal MOSt 10 Year Gilt Fund(An open ended Gilt Scheme)

stOpens: 21 Nov 2011thCloses: 5 Dec 2011NFO

1

Factors impacting interest rate

?Commodity price movement

?Currency movement

InflationEconomic Growth

?GDP

?Balance of Payment

Liquidity

?Fiscal deficit

?Investment outlook

0

2

4

6

8

10

12

9/1

/2009

11/1

/2009

1/1

/2010

3/1

/2010

5/1

/2010

7/1

/2010

9/1

/2010

11/1

/2010

1/1

/2011

3/1

/2011

5/1

/2011

7/1

/2011

9/1

/2011

WPI

(in P

erc

enta

ge)

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

7/1

0/2

000

7/1

0/2

001

7/1

0/2

002

7/1

0/2

003

7/1

0/2

004

7/1

0/2

005

7/1

0/2

006

7/1

0/2

007

7/1

0/2

008

7/1

0/2

009

7/1

0/2

010

7/1

0/2

011

Current Scenario

2

Source : CGA, Ministry of Finance, CIRA

Slowing Growth

GPD

Gro

wth

10

9

8

7

6

5

9.6

9.3

6.8

88.5

7.6

FY07

FY08

FY09

FY10

FY11

FY12

E

Source: MOSL Research

Liq

uid

ity A

dju

stm

ent

Faci

lity

(R

s B

n)

Tight Systemic Liquidity

Source : Bloomberg

Inflation close to double digit

Source : Bloomberg

As a result, interest rates have increased significantly in recent months

12/1

2/2

008

2/1

2/2

009

4/1

2/2

009

6/1

2/2

009

8/1

2/2

009

10/1

2/2

009

12/1

2/2

009

2/1

2/2

010

4/1

2/2

010

6/1

2/2

010

8/1

2/2

010

10/1

2/2

010

12/1

2/2

010

2/1

2/2

011

4/1

2/2

011

6/1

2/2

011

8/1

2/2

011

10/1

2/2

011

in U

SD

MSCI EM Commodity Index9,288

6,9448.78

9.67

8.24

7.84

8.43 8.37

7.82

7.53

4.34 4.22

4.40

3.96

4.46 4.54 4.51

4.00

3.00

3.20

3.40

3.60

3.80

4.00

4.20

4.40

4.60

4.80

5.00

7.00

7.50

8.00

8.50

9.00

9.50

10.00

1-A

pr-

10

1-M

ay-1

0

1-J

un-1

0

1-J

ul-

10

1-A

ug-1

0

1-S

ep-1

0

1-O

ct-1

0

1-N

ov-

10

1-D

ec-

10

1-J

an-1

1

1-F

eb-1

1

1-M

ar-1

1

1-A

pr-

11

1-M

ay-1

1

1-J

un-1

1

1-J

ul-

11

1-A

ug-1

1

1-S

ep-1

1

Worl

d G

DP G

row

th (

in P

erc

enta

ge)

India

n G

DP G

row

th (

in P

erc

enta

ge)

India 2011 India 2012 World 2011 World2012

Interest Rate Outlook

3

Source : IMF Data Source : Bloomberg

?Systemic liquidity expected to improve as capital investments are decelerating and high interest rates are

leading to strong deposit growth

Inflation momentum turning negative & expected to ease?

Source: MOAMC Internal Analysis.

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on

external current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance

or events to differ materially from those expressed or implied in such statements. Please refer to the scheme information document for

further information.

Interest rates expected to decline

Case for Investment 10 Year G-Sec

4

Interest rates nearing its 9 year peak

?Provides an opportunity to play the interest rate cycle.

?Long duration bonds are a good way to play it.

Government securities (G-Sec)

?Provides access to liquid and Credit-Risk free investment

?Low risk premium - sovereign guarantee

?Low illiquidity premium – G-Secs are most liquid part of bond market

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on external

current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to

differ materially from those expressed or implied in such statements. Please refer to the scheme information document for further information.

Source: MOAMC Internal Analysis.

Interest Rates (Yields) Nearing Peak

5

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on external

current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to

differ materially from those expressed or implied in such statements. Please refer to the scheme information document for further information.

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

90

95

100

105

110

115

120

125

130

135

140 2

1-A

ug-0

7

21-O

ct-0

7

21

-Dec-

07

21

-Feb-0

8

21

-Apr-

08

21

-Jun-0

8

21

-Aug-0

8

21

-Oct

-08

21

-Dec-

08

21-F

eb

-09

21

-Apr-

09

21

-Jun-0

9

21

-Aug-0

9

21

-Oct

-09

21

-Dec-

09

21

-Feb-1

0

21

-Apr-

10

21

-Jun-1

0

21

-Aug-1

0

21

-Oct

-10

21

-Dec-

10

21

-Feb-1

1

21

-Apr-

11

21

-Jun-1

1

21

-Aug-1

1

Yie

ld (

in P

erc

enta

ge)

Inve

stm

ent

Val

ue (

in R

s)

Yields Near Peak

Investment Value Yield

Source: RBI NDS OM data as on 31.10.2011 Investment value calculated using clean price & paid coupon

9.51% 135.11

97.31

5%

Why MOSt 10 Year Gilt Fund

6

Access to 10 Year Benchmark G-Sec

Invest predominantly in the10 Year Benchmark G-Sec

Purest play on the interest rate cycle

No active duration management

10 year benchmark G-Sec is the most liquid segment of the market

Credit risk free returns

Indexation benefit

Markets and Volumes: Ample Liquidity

7

Source RBI on 31.10.2011

136,960 126,610

180,590

138,315

46%

47%

52%

52%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

42%

44%

46%

48%

50%

52%

54%

Jun-11 Jul-11 Aug-11 Sep-11

10 Year G - Sec Liquidity

Monthly G - sec Volume (Rs. Cr) % of 10 Yr Benchmark G-sec in Total volume (Rs. Cr)

Total Outstanding Government of India Securities Rs.2,387,333.47 Cr

Asset Allocation

8

Security

10 Year Benchmark G-Sec 90 – 100 % Low

Other Government Securities

(7 to 12 years), T-Bills, 0 – 10 % Medium- Low

Cash Management Bills,

CBLO & Repo

Investment Risk

For further details, please refer to the Scheme Information Document (SID)

The Motilal Oswal MOSt 10 Year Gilt Fund would primarily invest in

Government bonds:

Product Features

9

Type of the scheme : An Open Ended Gilt Scheme

Two Plans : Dividend & Growth

Total Expenses : 0.99%

Exit Load : 0.5% if redeemed within 3 months

Min Subscription : Rs.10000 & in multiples of Re. 1 thereafter

NFO Opens : 21st November 2011

NFO Closes : 5th December 2011

Fund Manager : Abhiroop Mukherjee

B.com (H), MBA 4yrs Experience in Trading Fixed Income Securities viz.

G-Sec, T-bills, Corporate Bonds CP, CD etc.

Earlier worked with PNB GILTS LTD. as WDM dealer for 2007-2011

For further details, please refer to the Scheme Information Document (SID)

10

DISCLAIMER: This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information

contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions and features of Motilal Oswal MOSt 10 Year Gilt Fund

(MOSt 10 Year Gilt Fund). The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be

construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice.

While utmost care has been exercised while preparing this document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information

and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-

looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to

differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this presentation. No part of this document

may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the Motilal Oswal Mutual Fund/Motilal Oswal Asset Management Company Limited.

Readers should before investing in the Scheme make their own investigation and seek appropriate professional advice.

Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment

Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd.

Scheme Classification : Motilal Oswal MOSt 10 Year Gilt Fund (MOSt 10 Year Gilt Fund), an open ended gilt scheme Investment Objective: The primary investment objective of the

Scheme is to generate credit risk-free returns by investing in a portfolio of securities issued by the Central Government and State Government. Asset Allocation: 10 yr Benchmark

Government Security: 90%-100%; Other Government Securities (7 to 12 years), T-Bills, Cash Management Bills, CBLO & Repo: 0-10%. Load: Entry Load: Nil Exit Load: 0.50% for exit

within 3 months Terms of Issue: Minimum Application Amount: During NFO& ongoing basis: Rs. 10,000/- and in multiples of Re. 1/-thereafter. Face Value & Issue Price: Offer of units

of Rs. 10/- per unit during the New Fund Offer and at NAV based prices on ongoing basis. Investor Benefits and General Services: During NFO, Investors can also subscribe to the units

through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual Fund Service System (MFSS) of NSE. The AMC will calculate and publish the

first NAV of the Scheme not later than 30 days from the closure of the NFO. Subsequently, the NAVs will be calculated and disclosed at the close of every Business Day. Risk Factors: (1) All

the Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme’s objectives will be achieved (2) As the price / value /

interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors

and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and

may not provide a basis of comparison with other investments (4) Motilal Oswal MOSt 10 Year Gilt Fund (MOSt 10 Year Gilt Fund )is the name of the Scheme and does not in any

manner indicate either the quality of the Scheme, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment

Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial

contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) The present Scheme is not a guaranteed or assured return Scheme. Scheme Specific

Risk Factors: The 10 yr Benchmark Government Bond is the most liquid security in the entire Government Bond market, presently it alone constitutes about 80%-90% of the entire

volume of the Government Bond market. The 10 yr Benchmark however changes every year as there is a new 10 yr Benchmark Government Bond issued by the RBI as the existing

one becomes a 9 yr residual maturity paper, hence the market exits from the existing paper and the focus shifts to the new 10 yr Benchmark Government Bond. For further Scheme

Specific Risk Factors & other details, Please read the Scheme Information Document (SID) & Statement of Additional Information (SAI) carefully before investing. A copy of SID, SAI

and KIM alongwith the application form are available at the office of the AMC, R&T, Distributors, or can be downloaded from www.motilaloswal.com/assetmanagement and

www.mostshares.com Investors can also contact us on our toll free number 1800-200-6626 or send email at mfservice@motilaloswal.com

FundsCall: 1800-200-6626 SMS: GILT to 575753

E-mail: mfservice@motilaloswal.comWebsite: www.motilaloswal.com/assetmanagement

Website: www.mostshares.com

I