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Suggested Investment Avenues

Time Reference: October 9, 2001

1. Mutual Funds: Long Term Gilt Funds

- K-Gilt Investment Plan

- Templeton India G-Sec Fund
- Pru-ICICI Gilt Investment
- DSP Merrill Lynch G-Sec Fund
- JM G Sec- PF Plan

2. Mutual Funds: Index Funds

- Franklin India Index Fund

- Franklin India Index Tax Fund

- IDBI Principal Index Fund
- Pioneer ITI Index Fund

3. Mutual Funds: Income Funds

- Reliance Income Fund
- HDFC Income Fund
- Jardine Fleming India Bond Fund
- Chola Triple Ace
- Sundaram Bond Saver


Other good funds in this category includes Templeton India Income Fund, DSP Merrill Lynch Bond Fund, Pioneer ITI Income Builder Account and JM Income Fund.
4. ICICI safety bond (closes on October 16th)

Regular Income Bond:- Annual Income Plan (Option III)
Interest : 9.75% p.a. for 5 years
5. RBI Relief Bond (Option B-Cumulative)

Minimum Investment: Rs.1000 (and in multiples of Rs. 1000/-).
Lock-in-period- 5 years.

Interest: 8.5% per annual, compounded with half-yearly rests, is payable on maturity along with the principal amount by credit to the bank account of the holder at designated branch itself.

6. REC Bond (Option III)


Interest: Cumulative.
Coupon Rates (Up to 36 months) % per annum: 8.5%.
Repayment on Maturity: Rs.12,814. (on investment of Rs.10,000) along with accumulated annually compounded interest on Rs.12,814.
7. NHAI Bond (Option III)

Maturity: 7 yrs
Interest: Annual
Coupon Rates (Up to 36 months) % per annum: 9%*
Repayment on Maturity (per bond): Rs.10, 000(on investment of Rs.10, 000)

* At a discount of 1% at the end of 3 years if investor executes Put Option
8. Company FDs

Sundaram Home Finance Ltd- Cumulative Income Scheme
Minimum Deposit: Rs.10, 000
Term: 60 months
Rate p.a. at half-yearly rests: 10.25%
Annual Yield: 12.96%

Gujarat State Fertilizers & Chemicals Ltd.- Cumulative Scheme
Minimum Deposit: Rs.5000

Term: 3yrs
Approx. Yield: 15.07%
Maturity Value: Rs.7261 (on investment of Rs.5000)

9. Equities- Stable Set- Chances of further appreciation from present level over a period of time.

Scrips

Present Mkt Price

HLL

224.70

ITC

644.35

HDFC Ltd

652.30

HDFC Bank

233.20

SBI

183.00

VSNL

223.85


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