INDIAN MUTUAL FUNDS

Dear Friends

INDIA, OUR BELOVED MOTHERLAND - often known as the largest democracy and the second most populous country in the world is much more, being 4th ranking country in terms of Purchasing Power Parity & Gross Domestic Product and 3rd most preferred investment destination - indeed an economic power in the making.

Like Indian fellowmen, NRIs too can participate in the promising future of India, being permitted to undertake almost all kinds of businesses by investing in shares of companies, partnership or running sole proprietorship in India and also investing in immovable properties and shares & securities in India.

The robust economic growth is reflected in the Indian stock markets too. The Indian Equities have risen handsomely outperforming global indices in foreign currency terms too - the BSE has gained 111.36% ( 3125 to 6605 ) against FTSE100 Index Loss of (-) 2.81 ( 5085 to 4942 ) & minimal gain of Dow Jones at 6.25% ( 9946 to 10568 ) between April 2002 to March 2005, as reflected in the chart herein.

Index	APR. 2002	MAR. 2005	Gain in %
BSE	3125	6605	111.36%
FTSE	5085	4942	-2.80%
Dow Jones	9946	10568	6.25%

We offers attractive investment schemes ;

I. " Twin Currency Plan [ TCMF ] for investment in Indian MFs in $, £, € :

II. NRE & NRO to Floating Rate Funds :

I. " Twin Currency Plan [ TCMF ] for investment in Indian MFs in $, £, € :

We at nribanks.com offer advisory services and facilitate Mutual Fund investments in various Equity, Hybrid, Arbitrage and Debt schemes offered by leading most Mutuall Fund Houses in India. The charts herein show robust performance resulting in excellent gains for NRIs being consistently posted by Mutual Funds over last 3 years. It may be noted that the said investments can be undertaken in Indian Rupees and can also be planned in foreign currency i.e. $, £, and € .

For the investors, who do not wish to take the risk of foreign currency fluctuation and want their investment to continue in foreign currency and simultaneously participate in various investment schemes of Mutual Fund, we have structured TCMF - a unique Twin Currency Mutual Fund Investment plan for NRI participation in Equity schemes of Indian Mutual Funds. The TCMF facilities continuity of foreign currency deposit and simultaneous Mutual Fund investment in Indian rupees.

Excellent performance of some of the leading MF Diversified Equity Schemes under STP / SIP * and MF gains beating the Bombay, FTSE and Dow Jones indices are shown herein :

Best Annualised Gains of Diversified Equity MFs - STP / SIP *
FUND NAME	STP 3 Yrs. Gains		SIP 3 Yrs. Gains
FUND NAME	Total %	Annualised %	Total %	Annualised %
RELIANCE GROWTH	169.58 %	56.53 %	336.62 %	112.21 %
FRANKLIN TEMPLETON PRIMA	161.27 %	53.76 %	297.22 %	99.07 %
RELIANCE VISION	138.33 %	46.11 %	273.99 %	91.33 %
TATA PURE EQUITY	124.62 %	41.54 %	235.64 %	78.55 %
DSP MERRILL LYNCH EQUITY	74.44 %	24.81 %	126.97 %	42.32 %
BSE SENSEX	64.63 %	21.54 %	109.86 %	36.62 %
FTSE 100 INDEX - £	23.00 %	7.67 %	28.84 %	9.61 %
DOW JONES - $	20.01 %	6.67 %	23.03 %	7.68 %
FUND NAME	STP 2 Yrs. Gains		SIP 2 Yrs. Gains
RELIANCE GROWTH	87.44 %	43.72 %	184.95 %	92.47 %
RELIANCE VISION	70.77 %	35.39 %	144.41 %	72.20 %
FRANKLIN TEMPLETON PRIMA	79.63 %	39.81 %	143.01 %	71.51 %
TATA PURE EQUITY	63.66 %	31.83 %	113.09 %	56.54 %
DSP MERRILL LYNCH EQUITY	40.27 %	20.13 %	67.88 %	33.94 %
BSE SENSEX	34.71 %	17.35 %	55.98 %	27.99 %
FTSE 100 INDEX - £	16.44 %	8.22 %	20.92 %	10.46 %
DOW JONES - $	11.71 %	5.86 %	11.84 %	5.92 %
FUND NAME	STP 1 Yr. Gains		SIP 1 Yr. Gains
RELIANCE GROWTH	-	34.75 %	-	69.62 %
RELIANCE VISION	-	29.42 %	-	55.48 %
FRANKLIN TEMPLETON PRIMA	-	35.31 %	-	53.48 %
DSP MERRILL LYNCH EQUITY	-	25.41 %	-	48.82 %
TATA PURE EQUITY	-	23.45 %	-	39.53 %
BSE SENSEX	-	17.23 %	-	28.44 %
FTSE 100 INDEX - £	-	7.95 %	-	11.32 %
DOW JONES - $	-	4.00 %	-	4.01 %
* Disclaimer - past performance may or may not be sustained in the future

GAINS in $, £, € :
Even if this MF schemes had yielded returns of only 12% p.a., the net yield under the TCMF would have been :
$ 8.00% to 9.00%p.a. ; £ 11.00% to 12.00% p.a. & in € 6.50% to 7.50% p.a..

Basic features :

1. NRI places FCNR deposits in £ ,Euro or $ deposit for 3 years .
2. Bank grants Rupee loan to the NRI against security of said FCNR deposits.
3. The rupee funds are invested in Equity Schemes of Mutual Funds under a Systematic Investment Plan [ SIP].

4. Before maturity, Equity Schemes are sold and NRO loan is to be repaid.

5. Upon repayment of loan, FCNR Deposit will be available for remittance abroad or renewal. Capital gains are repatriable subject to payment of tax and compliance of necessary formalities.

ADVANTAGES :

TCMF Plan has an advantage of foreign exchange risk coverage and leverage coupled with arbitrage opportunities. The Plan ensures continuity of foreign currency deposit and simultaneously facilitates Mutual Fund investment in Indian rupees.

1. The investment will continue in Foreign Currency by way of FCNR Deposit. Thus Foreign Exchange risk coverage is provided.

2. Leverage facility is available as an investment of say FCNR US $ 100,000 is enhanced by additional Rupee investment equivalent to US $85,000 totaling to investment of US $ 185,000.

3. Arbitrage opportunity is also facilitated by investment option of possibly higher yield in Equities of funds borrowed at lower cost of (Re.) 4.50% p.a.

II. NRE & NRO to Floating Rate Funds :

We suggest investment of NRE & NRO balance in Savings & transfer of maturity amounts of Fixed Deposits to Floating Rate / Liquid Funds For incremental tax - free income & Liquidity.

1. Liquid / Floating rate funds are best alternative to balances held in NRE and / or NRO one year deposits and balances held in Savings Accounts. Mutual Funds' Floating rate / liquid fund schemes' objective is to generate regular income through investment in comparative investment options.

2. The investment port-folio consists of Government Securities , Bank deposits, deposits with Public Sector and Private Sector companies, which provides regular income and high security.

3. Under the dividend option, the investors' income by way of dividend remains tax free as the Mutual Fund is required to pay dividend distribution tax - presently, at app. 13%. The floating rate fund also offer unique option of daily dividend reinvestment plan.

ISSUE	FLOATING RATE	NRO A/c.	NRE
Security	Secured investment in Govt.securities, Bank Deposits & Corp.Debt	Also secured.	Also secured.
Security Insurance	Nil	Rs.1 lakh per person	Rs.1 lakh per person
Yield/Return	App. 4.50% to 5.00%	Savings-3.50% F.D.3-year Deposit 5.25%	Savings-3.50% F.D.3-year Deposit 4.25%
Tax	Dividend tax-free	Interest taxable	Dividend tax-free
TDS	Nil	30.60%	Nil
Premature Withdrawal for Penalty / Liquidity	N.A. - Daily Dividend / Total liquidity	As Applicable / subject to loss of interest	As Applicable / subject to loss of interest
Investment Objective	Stable income with low risk	Profit-making with medium risk	Profit-making with medium risk
Incremental Return	Possible - rising Interest conditions.	Not Possible- Fixed return	Not Possible- Fixed return

Hope this is found useful and interesting. Please feel free to ask or otherwise inform your option, whereupon we will send documents for necessary action.

With regards,
Sincerely,

RAJESH H DHRUVA
Chief Executive
nribanks.com

Tel. No. : 0091 281 2464099 / 2463367
Cell : 0091 98240 49944

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* Disclaimer - past performance may or may not be sustained in the future.