GIPS – Application in India

Example 1: Mutual Fund1 Company (MF 1 Growth & Tax Savings Composite) Composite Name: MF 1 Growth & Tax Savings Composite Composite Definition: MF 1 Growth & Tax Savings Composite includes all accounts that have an objective to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index or open-ended diversified equity schemes of mutual funds registered with SEBI. 2

Example : Mutual Fund1 Company (MF 1 Growth & Tax Savings Composite) Comparative Benchmark: NIFTY 200 Index Account (Fund) Calculations: Daily valuations based on published NAV returns. Composite Calculations: Monthly valuations based on asset weighting the fund returns using their beginning period weighting. 3

Example 1: Mutual Fund1 Company (MF 1 Growth & Tax Savings Composite) Annual GIPS Compliant Presentation Annual Performance Results Composite   Year End Firm Assets (Rs. Crores) Composite Assets # of Accts. Gross Net/Net Nifty 200 Index Composite Dispersion Composite 3 Yr St. Dev. Benchmark 3 Yr 3/31/2016 - 12/31/2016 867 689 3 16.09% 15.04% 8.62% 0.58% 14.89% 14.67% 2016 653 521 1.25% 0.00% -6.70% 0.37% 15.67% 15.76% 2015 602.78 455 29.55% 27.99% 33.36% 1.94% 13.94% 14.99% 2014 396.85 270 25.24% 23.72% 19.75% 15.87% 18.08% 2013 293.57 178 10.27% 8.89% 7.76% 0.62% N.A.1 2012 200.77 118 -0.17% -1.61% -8.86% 0.71% N.A.1 - The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36- month period. The three-year annualized standard deviation is not presented for 2012 through 2013 due to less than 36 months of composite and benchmark data. MF 1 Growth & Tax Savings Composite (“Composite”) includes all accounts that have an objective to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index or open-ended diversified equity schemes of mutual funds registered with SEBI. For comparative purposes, the Composite is measured against the Nifty 200 Index. The NIFTY 200 Index is designed to reflect the behavior and performance of large and mid-market capitalization companies. NIFTY 200 includes all companies forming part of NIFTY 100 and NIFTY Full Midcap 100 index. The Composite was created February 1, 2016. Mutual Fund1 Company (“MF 1”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. MF 1 has not been independently verified. MF 1 is a registered mutual fund. The firm’s list of composite descriptions is available upon request. Results are based on fully discretionary funds under management, including those funds that have closed or merged. Past performance is not indicative of future results. The Indian Rupee (Rs.) is the currency used to express performance. Returns are presented gross and net of all expenses, including management fees, custodian fees, other administrative charges, and net of transaction costs. Returns include the reinvestment of all income. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The investment management fee schedule for the composite is 1.25%. Total Firm Assets – end of financial year firm level assets Composite Assets - end of financial year composite level assets – sum of all fund NAVs at the end of the year Number of Accounts – number of accounts present in the composite at the end of financial year Composite Net/Net – monthly composite returns are calculated by beginning asset weighting the monthly NAV returns of the direct plans of the mutual funds in the composite for the month. Direct plans are taken as proxy return while the AUM is based on the total scheme level AUM. Annual composite returns are calculated by geometrically linking the monthly composite level returns. Composite Gross - monthly fund gross returns are calculated by adding back year end all expense ratio of the funds to the Net/Net return of the fund. monthly composite returns are calculated by taking beginning asset weighting these monthly fund gross returns. Annual composite returns are calculated by geometrically linking the monthly composite level returns. Benchmark return represents the total return of the index Composite Dispersion – The annual composite dispersion presented is an asset- weighted standard deviation using the net/net returns calculated for the accounts in the composite the entire year. Composite 3 year std. dev. – this is the composite level standard deviation calculated by taking the standard deviation population measure of 36 months of net/net composite level returns. Benchmark 3 year std. dev. - this is the benchmark level standard deviation calculated by taking the standard deviation population measure of 36 months of net/net composite level returns. 4

Example 2: Mutual Fund Company 2 (MF 2 Active Domestic Equity Composite) Composite Name: MF 2 Active Domestic Equity Composite Composite Definition: MF 2 Active Domestic Equity Composite includes all accounts that have an objective to achieve long-term capital appreciation from a diversified portfolio of predominantly domestic equity and equity related instruments. 5

Example 2: Mutual Fund Company 2 (MF 2 Active Domestic Equity Composite) Comparative Benchmark: NIFTY 200 Index Account (Fund) Calculations: Daily valuations based on published NAV returns. Composite Calculations: Monthly valuations based on asset weighting the fund returns using their beginning period weighting. 6

Example 2: Mutual Fund Company 2 ( Active Domestic Equity Composite) Annual GIPS Compliant Presentation Annual Performance Results Composite   Year End Firm Assets (Rs. Crores) Composite Assets # of Accts. Gross Net/Net Nifty 200 Index Composite Dispersion Composite 3 Yr St. Dev. Benchmark 3 Yr 3/31/2016 - 12/31/2016 7,022** 6,351 4 16.53% 15.12% 8.62% 1.38% 14.93% 14.67% 2016 5,664 4,714 -1.06% -2.23% -6.70% 2.39% N.A.2 2015 2,469 2,095 68.89% 66.73% 33.36% 15.00% 2014* 583 186 2 15.85% 14.59% 12.79% N.A.1 *Composite and benchmark performance are for the period June 1, 2013 through March 31, 2014. **Firm assets are as of September 30, 2016. N.A.1 - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. N.A.2 - The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36- month period. The three-year annualized standard deviation is not presented for 2012 through 2013 due to less than 36 months of composite and benchmark data. MF 2 Active Domestic Equity Composite (“Composite”) includes all accounts that have an objective to achieve long-term capital appreciation from a diversified portfolio of predominantly domestic equity and equity related instruments. For comparative purposes, the Composite is measured against the Nifty 200 Index. The NIFTY 200 Index is designed to reflect the behavior and performance of large and mid-market capitalization companies . NIFTY 200 includes all companies forming part of NIFTY 100 and NIFTY Full Midcap 100 index. The Composite was created February 1, 2016. Mutual Fund Company 1 (“MF 2”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. MF 2 has not been independently verified. MF 2 is an independent registered investment adviser. The firm’s list of composite descriptions is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The Indian Rupee (Rs.) is the currency used to express performance. Returns are presented gross and net of all expenses, including management fees, custodian fees, other administrative charges, and net of transaction costs. Returns include the reinvestment of all income. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The investment management fee schedule for the composite is 2%. Actual investment advisory fees incurred by clients may vary. 7

Comparability MF 1 Growth & Tax Savings Composite Annual Performance Results Composite   Year End Firm Assets (Rs. Crores) Composite Assets # of Accts. Gross Net/Net Nifty 200 Index Composite Dispersion Composite 3 Yr St. Dev. Benchmark 3 Yr 3/31/2016 - 12/31/2016 867 689 3 16.09% 15.04% 8.62% 0.58% 14.89% 14.67% 2016 653 521 1.25% 0.00% -6.70% 0.37% 15.67% 15.76% 2015 602.78 455 29.55% 27.99% 33.36% 1.94% 13.94% 14.99% 2014 396.85 270 25.24% 23.72% 19.75% 15.87% 18.08% 2013 293.57 178 10.27% 8.89% 7.76% 0.62% N.A.1 2012 200.77 118 -0.17% -1.61% -8.86% 0.71% MF 2 Active Domestic Equity Composite Annual Performance Results Composite   Year End Firm Assets (Rs. Crores) Composite Assets # of Accts. Gross Net/Net Nifty 200 Index Composite Dispersion Composite 3 Yr St. Dev. Benchmark 3 Yr 3/31/2016 - 12/31/2016 7,022 6,351 4 16.53% 15.12% 8.62% 1.38% 14.93% 14.67% 2016 5,664 4,714 -1.06% -2.23% -6.70% 2.39% N.A.2 2015 2,469 2,095 68.89% 66.73% 33.36% 15.00% 2014* 583 186 2 15.85% 14.59% 12.79% N.A.1 8

GIPS vs Regulations

GIPS Benefits GIPS Requirements SEBI Regulations Benefits This helps standardizing the calculation and presentation of performance across ALL asset classes and investment vehicles. GIPS Requirements SEBI Regulations Benefits Firms MUST NOT present performance or performance-related information that is false or misleading Similar to GIPS Reinstates the importance of fairness in presenting performance related information Changes in a firm’s organization must not lead to alteration of historical composite performance. No current regulations governing investment performance presentation for schemes which have closed/merged or whose ownership has changed. Provides clarity and transparency at the firm level Books and records must be maintained for all performance periods presented on the GIPS compliant presentation Every AMC shall maintain and preserve for a period of 8 years its books of account, records and documents. Maintaining books for the entire history lends more credibility and transparency to the performance with less ways to show incorrect performance information All similarly managed accounts/funds have to be grouped together in a composite When the performance of a particular Mutual Fund scheme is advertised, the advertisement shall also include the performance data of all the other schemes managed by the fund manager of that particular scheme. By combining all accounts into one composite, an investor gets a better picture of how the entire strategy if being managed vs. a single account/fund.

GIPS Benefits GIPS Requirements SEBI Regulations Benefits Terminated portfolios must be included in the historical performance of the composite Terminated funds performances are not required to be disclosed This eliminates survivorship bias Portfolios must not be switched from one composite to another unless documented changes to a portfolio’s investment mandate, objective, or strategy or the redefinition of the composite makes it appropriate. The historical performance of the portfolio must remain with the original composite. SEBI requires the performance of the funds managed by the Fund Manager to be shown, however, when the manager manages more than six schemes, it requires only the top three and bottom three performing schemes performance to be shown.  Here again GIPS gives a better transparency into performance presentation and calculation. However, SEBI wants Investors to know how the other schemes managed by the same fund manager have performed which a composite will not be able to provide as it has funds which have the same or similar investment strategy and not necessarily the same fund manager GIPS requires a time weighted return adjusted for cash flows on investments to be shown. SEBI has NAV calculation requirements This helps standardizing the calculation methodology across all investment vehicles

GIPS Benefits GIPS Required Stats & Disclosures Current MF Factsheet Consistent methodology and standardized disclosures to calculate and present composite returns SEBI does not has a concept of composites currently This helps standardizing the calculation and presentation methodology across all investment vehicles Requires annual returns to be shown Requires CAGR for schemes in existence for more than 3 years in addition to three year annual returns By showing annual returns, the investor sees the volatility of the returns, rather than just one return leading the investor to believe that the scheme has generated a constant return Requires benchmark returns to be shown for all time periods presented for the composite return Requires benchmark returns to be shown similar to fund returns as above By presenting the benchmark returns against the composite returns for each period shown helps the investor compare the performances more efficiently Requires benchmark and composite standard deviation to be presented SEBI does not requires any risk measures to be show. However, AMFI requires fund standard deviation along with other risk measures to be displayed By showing benchmark risk measures alongside composite risk helps an investor understand the volatility that the manager has had vs. the market. This way an investor can better gage the fund’s risk Benchmark description is required, unless the benchmark is widely recognized Benchmark description is not required Helps an investor better understand what the universe that the fund is measures against represents

GIPS Benefits GIPS Required Stats & Disclosures Current MF Factsheet Requires disclosure of benchmark changes, if any Benchmarks can be changed by the AMC by following an internal process Prevents selecting and changing benchmarks in a way that benefits the manager Requires disclosures of treatment of fees in the returns along with what are the constituents of the fees Investment performance presentation does not require any presentation of fees and expenses. However, the half yearly and annual financial statements require disclosure of fees and expenses Helps an investor understand the various fees a composite charges along with how it is reflected in the return calculations Requires disclosures pertaining to the use to leverage, derivatives, and/or short positions, if material Disclosure requirements for derivatives is required in half yearly and annual reports Helps an investor understand the risk in investing such a composite better