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I. Highlights

Sponsor AIG Capital Corporation

Scheme Name AIG India Treasury Plus Fund

Type An Open Ended Income Scheme.

Investment Objective The primary investment objective of the Scheme is to seek to generate optimal returnscommensurate with low risk and a high liquidity, from a portfolio constituted of debt securitiesand money market securities.

However, there is no assurance that the objective of the Scheme will be realised and the Schemedoes not assure or guarantee any returns.

Purchase Price for New Rs.10/- per Unit.Fund Offer (NFO)

Purchase/ Redemption Price When the Scheme goes open ended after the closure of the NFO, the price for Purchases andduring Ongoing Offer Redemptions will be based on Applicable NAVs.

Asset Allocation Instrument Minimum Maximum Risk

Debt* Instruments including Government Securities, 50% 100% LowCorporate Debt, Other debt instruments and MoneyMarket Instruments with average maturity less thanor equal to 12 months or have put options within aperiod not exceeding 12 months

Debt* Instruments including Government Securities, 0 % 50 % Low toCorporate Debt and other debt Instruments with Mediumaverage maturity greater than 12 months

*Debt securities may include securitized debts upto 75% of the net assets

Net Asset Value Calculated on all business days.

Choice of Plans RetailInstitutionalSuper Institutional

Choice of Options Growth OptionBonus OptionDividend Option

Dividend Payout OptionMonthly - 25th of every monthQuarterly - 25th of every calendar quarter end

Dividend Reinvestment OptionDailyWeekly - Every MondayMonthly - 25th of every monthQuarterly - 25th of every calendar quarter end

In case of Monthly and Quarterly dividend options, if any of the day(s) mentioned is a non BusinessDay, the dividend will be declared on the next Business Day. The dividend will be declared subjectto availability and adequacy of distributable surplus.

Minimum Initial Application Retail: Rs. 10000Amount Institutional: Rs. 1 Cr

Super Institutional: Rs. 10 Crs

In the case of transactions through STP, the minimum installment amount shall be Rs. 1,000/-.

The minimum amount in case of inter/ intra scheme (inter plan/inter option) switches shall bethe minimum amount required in the respective transferee scheme/plan.

Minimum Additional Amount Retail: Rs. 1000/- and in multiples of Re 1 thereafterInstitutional: Rs 1 Lac and in multiples of Re 1 thereafterSuper Institutional: Rs 10 Lac and in multiples of Re 1 thereafter

Load Structure during NFO & Entry Load - NilOngoing Offer Period Exit Load - Nil

Contingent Deferred Sales Charge - NilInter–Scheme Switch - At the applicable loads in the respective schemes

Intra–Scheme Switch (Inter Plan/ Inter Option) - Nil

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Liquidity The Scheme will offer Units for Purchase and Redemption at NAV related prices on everyBusiness Day on an ongoing basis, commencing not later than 30 days from the closure of theNFO Period. The Mutual Fund will endeavor to dispatch the Redemption proceeds within 3Business Days but not later than 10 business days from the acceptance of the Redemption request.

Transparency The AMC will calculate and disclose the first NAV(s) of the Scheme within a period of 30 daysfrom the closure of the NFO Period. Subsequently, the NAVs will be calculated and disclosed onevery Business Day. The AMC shall update the NAVs on the website of the Fund -www.aiginvestments.co.in and of the Association of Mutual Funds in India - AMFI(www.amfiindia.com).

The AMC will disclose details of the portfolio of the Scheme every 6 months by either sending acomplete statement to all the Unit Holders or by publishing such statement, by way ofadvertisement, in two daily newspapers. The same shall also be displayed on the website of thefund.

Minimum Redemption Amount The minimum amount for redemption must be Rs. 1000/- or account balance whichever is less.

Expenses The expenses incurred during New Fund Offer shall be borne by the AMC.

Applicable NAV For all purchase, redemption and switch transactions - For valid applications accepted:

Upto 3:00 PM (cut-off time) on a Business Day - the NAV of such Business Day.

After 3:00 PM (cut-off time) on Business Day, the NAV of the following Business Day.

The above will be applicable only for cheques / drafts / payment instruments payable locally in thecity in which ISC is located. Outstation cheques / drafts will not be accepted.

Benchmark Index CRISIL Liquid Fund Index

II. Definitions and Abbreviations

A. Definitions

In this Offer Document the following terms will have the meanings indicated there against, unless the context suggests otherwise.

AIG Capital Corporation / AIGCC The Sponsor of AIG Global Investment Group Mutual Fund.

Application Form / Key A form to be used by an investor to open a folio and/ or Purchase Units in the Scheme.Information Memorandum

Asset Management Company / AIG Global Asset Management Company (India) Private Limited, an asset management companyAMC / Investment Manager set up under the Companies Act 1956, having its registered office at FCH House, Ground Floor,

Peninsula Corporate Park, G.K.Marg, Lower Parel, Mumbai 400 013 and authorised by SEBI toact as the Asset Management Company / Investment Manager to the schemes of the AIG GlobalInvestment Group Mutual Fund.

Business Day A day not being:(1) A Saturday or Sunday;(2) A day when the money markets are closed / not accessible;(3) A day on which both Bombay Stock Exchange and the National Stock Exchange of India

Limited are closed;(4) A day on which Purchase and Redemption of Units is suspended or a book closure period is

announced by the Trustee / AMC;(5) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes

or such other events as the AMC may specify from time to time;(6) A day on which banks in Mumbai or Reserve Bank of India (RBI) is closed; or(7) A day on which there is no RBI clearing or settlement of securities.Provided that the days when the banks in any location where the AMC’s Investor Service Centresare located are closed due to a local holiday, such days will be treated as non Business Days at suchcentres for the purposes of accepting fresh subscriptions. However, if the Investor ServiceCentre in such locations is open on such local holidays, then redemption and switch requests willbe accepted at those centres, provided it is a Business Day for the Scheme on an overall basis.Notwithstanding the above, the AMC reserves the right to change the definition of Business Dayand to declare any day as a Business Day or otherwise at any or all ISCs.

Contingent Deferred Sales A charge to the Unit Holder upon exiting (by way of Redemption) based on the period of holdingCharge / CDSC of Units. The Regulations provide that a CDSC may be charged only for a no-Load Scheme and

only for the first four years after the Purchase and caps the percentage of NAV that can be chargedin each year.

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Custodian Citibank, N.A, Mumbai registered under the SEBI (Custodian of Securities) Regulations, 1996, orany other custodian who is approved by the Trustee.

Cut-off time Cut off timing, in relation to an investor making an application to a mutual fund for purchase orsale of units, shall mean the outer limits of timings within a particular day as prescribed by SEBIwhich are relevant for determination of the NAV that is to be applied for the transaction.

Collection Bank(s) The bank(s) with which the AMC has entered into/may enter into an agreement, from time totime, to enable investors to deposit their applications for Units during the NFO.

Designated Collection Centres During the NFO: AMC ISCs and branches of Collection Bank(s) designated by the AMC wherethe applications shall be received.During Ongoing Offer: AMC ISCs designated by the AMC where the applications shall bereceived.The names and addresses of the Designated Collection Centres are mentioned in the ApplicationForm.

Entry Load A Load charged to an investor on Purchase of Units based on the amount of investment or anyother criteria decided by the AMC.

Exit Load A Load (other than CDSC) charged to the Unit Holder on exiting (by way of Redemption) basedon period of holding, amount of investment or any other criteria decided by the AMC.

Foreign Institutional Investors / An entity registered with SEBI under the Securities and Exchange Board of India (ForeignFII Institutional Investors) Regulations, 1995 as amended from time to time.

Fund of Funds / FOF A mutual fund scheme that invests primarily in other schemes of the same mutual fund or othermutual funds.

Fund / Mutual Fund AIG Global Investment Group Mutual Fund, a Trust settled by AIG Capital Corporation andregistered with SEBI under the Regulations, vide Registration No. MF/054/07/02 dated February9, 2007.

Investment Management The agreement dated December 15, 2006 entered into between AIG Trustee Company (India)Agreement / IMA Private Limited and the AIG Global Asset Management Company (India) Private Limited, as

amended from time to time.

Investor Service Centre / ISC Official points of acceptance of transaction / service requests from investors. These will bedesignated by the AMC from time to time.

Net Asset Value / NAV Net Asset Value of the Units of the Scheme (including options thereunder) calculated in themanner provided in this Offer Document or as may be prescribed by the Regulations from timeto time.

New Fund Offer / NFO The offer for Purchase of Units at the inception of the Scheme, available to the investors duringthe NFO Period.

New Fund Offer Period / The period being September 18, 2007 to September 20, 2007 subject to extension, if any.NFO Period

Non Resident Indian / NRI A person resident outside India who is a citizen of India or is a person of Indian origin as per themeaning assigned to the term under the Foreign Exchange Management (Investment in Firm orProprietary Concern in India) Regulations, 2000.

Offer Document This document issued by AIG Global Investment Group Mutual Fund offering Units of AIG IndiaTreasury Plus Fund for subscription. Any modifications to the Offer Document will be made byway of an addendum which will be attached to Offer Document. On issuance of an addendum, theOffer Document will be deemed to be updated by the addendum.

Ongoing Offer Offer of Units under the Scheme when it becomes open ended after the closure of the New FundOffer Period.

Ongoing Offer Period The period during which the Ongoing Offer for subscription to the Units of the Scheme is made.

Person of Indian Origin ‘Person of Indian Origin’ means a citizen of any country other than Bangladesh or Pakistan, if (a)he at any time held an Indian passport; or (b) he or either of his parents or any of his grand parentswas a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b).

Purchase / Subscription Purchase of / Subscription to Units by an investor from the Fund.

Purchase Price The price (being Applicable NAV plus Entry Load, if any) at which the Units can be purchased andcalculated in the manner provided in this Offer Document.

Registrar Computer Age Management Services Private Limited (“CAMS”), appointed as the registrar andtransfer agent for the Scheme, or any other registrar that may be appointed by the AMC.

Redemption Repurchase of Units by the Fund from a Unit Holder.

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Redemption Price The price (being Applicable NAV minus Exit Load / CDSC, if any ) at which the Units can beredeemed and calculated in the manner provided in this Offer Document.

Repo/ reverse Repo Sale/ Purchase of securities with a simultaneous agreement to repurchase/ sell them at a laterdate

Scheme AIG India Treasury Plus Fund, an open ended Income scheme (including as the context permits,the options thereunder).

SEBI Regulations / Regulations Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from timeto time, including by way of circulars or notifications issued by SEBI and the Government of India.

Sponsor AIGCC, being the Settlor of AIG Global Investment Group Mutual Fund.

Switch Sale of a unit in one Scheme/ Plan/ Option against purchase of a unit in another Scheme/ Plan/Option

Systematic Transfer Plan/ STP A plan enabling Unit Holders to transfer sums on a weekly/ fortnightly / monthly basis from theScheme to other schemes launched by the Fund from time to time by giving a single instruction.

Systematic Withdrawal Plan / A plan enabling Unit Holders to withdraw amounts from the Scheme on a monthly or quarterlySWP basis by giving a single instruction.

Transaction Slip A form meant to be used by Unit Holders seeking additional Purchase or Redemption of Units inthe Scheme, change in bank account details, switch-in or switch-out and such other facilitiesoffered by the AMC and mentioned in Transaction Slips.

Trustee / Trustee Company AIG Trustee Company (India) Private Limited, a company set up under the Companies Act 1956,to act as the Trustee to AIG Global Investment Group Mutual Fund.

Trust Deed The Trust Deed dated December 15, 2006 executed by and between the Sponsor and the Trusteeestablishing the AIG Global Investment Group Mutual Fund, as amended from time to time.

Trust Fund Amounts settled / contributed by the Sponsor towards the corpus of AIG Global InvestmentGroup Mutual Fund and additions / accretions thereto.

Unit The interest of an investor, which consists of one undivided share in the net assets of the Scheme.

Unit Holder A person holding Units of the Scheme of AIG Global Investment Group Mutual Fund offered underthis Offer Document.

Valuation Day Business Day

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B. Abbreviations

In this Offer Document the following abbreviations have beenused.

ADR American Depository Receipt

AIGCC AIG Capital Corporation, the Sponsor of AIGGlobal Investment Group Mutual Fund

AIGCI AIG Capital India Private Limited

AMC Asset Management Company

AMFI Association of Mutual Funds in India

AOP Association of Persons

BOI Body of Individuals

BSE Bombay Stock Exchange Limited

CBLO Collateralised Borrowing and Lending Obligation

CDSC Contingent Deferred Sales Charge

ECS Electronic Clearing System

EFT Electronic Funds Transfer

ETF Exchange Traded Fund

FII Foreign Institutional Investor

FOF Fund of Funds

GDR Global Depository Receipt

HUF Hindu Undivided Family

IMA Investment Management Agreement

ISC Investor Service Centre

NAV Net Asset Value

NFO New Fund Offer

NRI Non-Resident IndianNSE National Stock Exchange of India LimitedPIO Persons of Indian OriginPOA Power of AttorneyRBI Reserve Bank of IndiaRTGS Real Time Gross SettlementSEBI Securities and Exchange Board of India

established under the SEBI Act, 1992SEBI Act Securities and Exchange Board of India Act, 1992SEFT Special Electronic Funds TransferSI Standing InstructionsSTP Systematic Transfer PlanSWP Systematic Withdrawal Plan

C. Interpretation

For all purposes of this Offer Document, except as otherwiseexpressly provided or unless the context otherwise requires:

The terms defined in this Offer Document include theplural as well as the singular.Pronouns having a masculine or feminine gender shall bedeemed to include the other.All references to “US$” refer to United States Dollarsand “Rs.” refer to Indian Rupees. A “Crore” means “tenmillion” and a “Lakh” means a “hundred thousand”.References to times of day (i.e. a.m. or p.m.) are toMumbai (India) times and references to a day are to aCalendar day including non Business Day.

III. Risk Factors and Special Considerations

A. Standard Risk Factors

Mutual funds, like securities investments, are subject tomarket risks and there is no guarantee against loss in theScheme or that the Scheme’s objectives will be achieved.

As with any investment in securities, the NAV of theUnits issued under the Scheme can go up or downdepending on various factors and forces affecting thesecurities market.

Past performance of the Sponsor or mutual fundsmanaged by the Sponsor does not indicate the futureperformance of the Scheme.

Investors in the Scheme are not being offered aguaranteed or assured rate of return. The scheme doesnot guarantee or assure any dividend and also does notguarantee or assure that it will make any dividenddistribution, though it has every intention to make thesame. All dividend distributions are subject to theinvestment performance of the Scheme.

AIG India Treasury Plus Fund is the name of the Scheme,and this does not in any manner indicate the quality of theScheme, its future prospects or returns.

Scheme Specific Risk Factors

The Scheme and individual Plan(s) with a separateportfolio, if any, under the Scheme shall have a minimumof 20 investors and no single investor shall account formore than 25% of the corpus of the Scheme/Plan(s).However, if such a situation arises during the NFO of theScheme, in accordance with the SEBI Regulations, theScheme will endeavour to ensure that within a threemonths time period or the end of the succeeding calendarquarter from the close of the NFO of the Scheme,whichever is earlier, the Scheme complies with thesetwo conditions failing which the provisions of Regulation39 (2) (c) of the Regulations would become applicableautomatically without any reference from SEBI andaccordingly the Scheme / Plan(s) shall be wound up andthe units would be redeemed at applicable NAV. The twoconditions mentioned above shall also be complied withineach subsequent calendar quarter thereafter, on an averagebasis, as specified by SEBI.SEBI has provided furtherclarifications with respect to determining the breach ofthe 25% limit by an investor - The average net assets ofthe scheme would be calculated daily and any breach ofthe 25% holding limit by an investor would bedetermined. At the end of the quarter, the average ofdaily holding by each such investor will be computed todetermine whether that investor has breached the 25 %limit over the quarter. If there is a breach of limit by anyinvestor over the quarter, a rebalancing period of onemonth would be allowed and thereafter the investor whois in breach of the rule shall be given 15 days notice toredeem his exposure over the 25% limit. Failure on thepart of the said investor to redeem his exposure over the25% limit within the aforesaid 15 days would lead toautomatic redemption by the Fund on the applicable NetAsset Value on the 15th day of the notice period. TheScheme shall adhere to the requirements prescribed bySEBI from time to time in this regard.

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In case Scheme fails to assemble minimum 20 investorsat the time of allotment, the Scheme shall be wound up,by following the guidelines prescribed by SEBI and theinvestor's application money would be refunded. Further,at the time of allotment, no single investor should accountfor more than 25% of the corpus of such Scheme (i.e. atthe portfolio level), accordingly Fund is constrained toreject the application by a single unitholder havingexposure of more than 25% at the time of allotment,hence such unitholder could be allotted limited units tosuch extent.

In addition to the factors that affect the values of securities,the NAV of Units of the Scheme will fluctuate with themovement in the broader fixed income, money marketand derivatives market and may be influenced by factorsinfluencing such markets in general including but notlimited to economic conditions, changes in interest rates,price and volume volatility in the bond markets, changesin taxation, currency exchange rates, foreign investments,political, economic or other developments and closure ofthe stock exchanges.

Investments in different types of securities are subjectto different levels and kinds of risk. Accordingly, theSchemes’ risk may increase or decrease depending uponits investment pattern. For example, investments incorporate bonds carry a higher level of risk thaninvestments in Government securities. Further, evenamong corporate bonds, bonds which have a higher ratingare comparatively less risky than bonds which have alower rating.

Risk Factors Associated with Fixed Income and MoneyMarket Instruments

The performance of the Scheme may be affected by changes inGovernment policies, general levels of interest rates and risksassociated with trading volumes, liquidity and settlementsystems.

Interest rate risk:

As with all debt securities, changes in interest rates may affectthe NAV of the Scheme since the price of a fixed incomeinstrument falls when the interest rates move up and vice aversa. The effect is more prominent when the duration of theinstrument is higher. Hence the NAV movement of the Schemeconsisting of predominantly fixed income securities is likelyto have inverse correlation with the movement in interestrates. In case of a floating rate instrument, this risk is lower asa result of periodic reset of the coupon.

Spread risk:

Though the sovereign yield curve might remain constant,investments in corporate bonds are exposed to the risk ofspread widening between corporate bonds and gilts. Typically,if this spread widens, the prices of the corporate bonds tendto fall and so could the NAV of the Scheme. Similar risk prevailsfor the investments in the floating rate bonds, where thebenchmark might remain unchanged, but the spread over thebenchmark might vary. In such an event, if the spread widens,the price and the NAV could fall.

Credit risk or default risk:

This refers to inability of the issuer of the debt security tomake timely payments of principal and / or interest due. It isreflected in the credit rating of the issuer. Hence if the credit

rating of the issuer is downgraded, the price of the securitywill suffer a loss and the NAV will fall. Credit risk factorspertaining to lower rated securities also apply to lower ratedzero coupon and deferred interest kind bonds. Lower ratedzero coupon and deferred interest kind bonds carry an additionalrisk in that, unlike bonds that pay interest through the periodof maturity, the Scheme by investing in these bonds will realizeno cash till the cash payment date and if the issuer defaults,the Scheme may obtain no return on its investment. Separately,underlying assets in securitised debt may assume differentforms and the general types of receivables include auto finance,credit cards, home loans or any such receipts. Credit risksrelating to such receivables depend upon various factors,including macro-economic factors of these industries andeconomies. Specific factors like nature and adequacy ofproperty mortgaged against these borrowings, nature of loanagreement / mortgage deed in case of home loans, adequacy ofdocumentation in case of auto finance and home loans, capacityof a borrower to meet his obligations on borrowings in case ofcredit cards and intentions of the borrower influence the risksrelating to asset borrowings underlying securitised debt.

Liquidity risk:

This represents the possibility that the realised price fromselling the security might be lesser than the valuation price asa result of illiquid market. If a large outflow from the Schemeis funded by selling some of the illiquid securities, the NAVcould fall even if there is no change in interest rates. Illiquidsecurities are typically quoted at a higher yield than the liquidsecurities and have higher bid offer spreads. Investment inilliquid securities results in higher current yield for theportfolio. Liquidity risk is a characteristic of the Indian fixedincome market today. In addition, money market securities,while fairly liquid, lack a well-developed secondary market,which may restrict the selling ability of the Scheme and maylead to the Scheme incurring losses till the security is finallysold.

Reinvestment risk:

This is associated with the fact that the intermediate cashflows (coupons, prepayment of principal in case of securitisedtransactions or principal payment in case a security gets calledor repurchased) may not be reinvested at the same yield asassumed in the original calculations. In case of securitiseddebt, changes in market interest rates and pre- paymentsmay not change the absolute amount of receivables for theinvestors but may have an impact on the re-investment of theperiodic cash flows that an investor receives on securitised papers.

Settlement risk:

Different segments of Indian financial markets have differentsettlement periods and such periods may be extendedsignificantly by unforeseen circumstances. Delays or otherproblems in settlement of transactions could result intemporary periods when the assets of the Scheme areuninvested and no return is earned thereon. The inability ofthe Scheme to make intended securities purchases, due tosettlement problems, could cause the Scheme to miss certaininvestment opportunities. Similarly, the inability to sellsecurities held in the Schemes portfolio, due to the absenceof a well developed and liquid secondary market for debtsecurities, may result at times in potential losses to the Schemein the event of a subsequent decline in the value of securitiesheld in the Scheme’s portfolio.

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Market risk:

Lower rated or unrated securities are more likely to react todevelopments affecting the market and the credit risk thanthe highly rated securities which react primarily to movementsin the general level of interest rates. Lower rated or unratedsecurities also tend to be more sensitive to economicconditions than higher rated securities.

Pre-payment risk:

Asset securitization is a process whereby commercial orconsumer credits are packaged and sold in the form of financialinstruments. In the event of pre-payment of the underlyingdebt, investors may be exposed to changes in tenor and yield.

B. Risk Factors Associated with Derivatives

Derivative products are leveraged instruments and can providedisproportionate gains as well as disproportionate losses tothe investor. Execution of such strategies depends upon theability of the fund manager to identify such opportunities.Identification and execution of the strategies to be pursued bythe fund manager involve uncertainty and decision of fundmanager may not always be profitable. No assurance can begiven that the fund manager will be able to identify or executesuch strategies.

The risks associated with the use of derivatives are differentfrom or possibly greater than, the risks associated withinvesting directly in securities and other traditionalinvestments.

As and when the Scheme trades in derivative products, thereare risk factors and issues concerning the use of derivativesthat investors should understand. Derivatives require themaintenance of adequate controls to monitor the transactionsand the embedded market risks that a derivative adds to theportfolio. Besides the price of the underlying asset, the volatility,tenor and interest rates affect the pricing of derivatives.

Other risks in using derivatives include but are not limited to:

(a) Credit Risk – this occurs when a counterparty defaultson a transaction before settlement and therefore, theScheme is compelled to negotiate with another counterparty, at the then prevailing (possibly unfavorable) marketprice, in order to maintain the validity of the hedge. Forexchange traded derivatives, the risk is mitigated as theexchange provides a guaranteed settlement but one takesthe performance risk on the exchange.

(b) Market Liquidity risk where the derivatives cannot besold (unwound) at prices that reflect the underlying assets,rates and indices.

(c) Model Risk, the risk of mis–pricing or improper valuationof derivatives.

Trading in derivatives carry a high degree of risk although theyare traded at a relatively small amount of margin whichprovides the possibility of great profit or loss in comparisonwith the principal investment amount.

The Scheme may find it difficult or impossible to executederivative transactions in certain circumstances. For example,when there are insufficient bids or suspension of trading dueto price limit or circuit breakers, the Scheme may face aliquidity issue.

The Scheme bears a risk that it may not be able to correctlyforecast future market trends or the value of assets, indexes

or other financial or economic factors in establishing derivativepositions for the Scheme.

The derivatives market in India is nascent and does not havethe volumes that may be seen in other developed markets,which may result in volatility in the values.

Interest Rate Swaps (IRS) are highly specialized instrumentsthat require investment technique and risk analysis differentfrom those associated with equity shares and other traditionalsecurities. The use of a IRS requires not only an understandingof the referenced asset, reference rate, or index but also ofthe swap itself, without the benefit of observing theperformance of the swap under all possible market conditions.Swap agreements are also subject to liquidity risk, which existswhen a particular swap is difficult to purchase or sell. Swapagreements may be subject to pricing risk, which exists whena particular swap becomes extraordinarily expensive (or cheap)relative to historical prices or the prices of correspondingcash market instruments. IRS agreements are also subject tocounterparty risk on account of insolvency or bankruptcy orfailure of the counterparty to make required payments orotherwise comply with the terms of the agreement.

C. Risk Factors Associated with Scrip Lending

The risks in lending portfolio securities, as with otherextensions of credit, consist of the failure of anotherparty, in this case the approved intermediary, to complywith the terms of agreement entered into between thelender of securities i.e. the Scheme and the approvedintermediary. Such failure to comply can result in thepossible loss of rights in the collateral put up by theborrower of the securities, the inability of the approvedintermediary to return the securities deposited by thelender and the possible loss of any corporate benefitsaccruing to the lender from the securities deposited withthe approved intermediary. The Mutual Fund may not beable to sell such lent securities and this can lead totemporary illiquidity.

D. Risk Factors Associated with Overseas Investment

Subject to necessary approvals and within the investmentobjectives of the Scheme, the Scheme may invest inoverseas markets which carry risks related to fluctuationsin the foreign exchange rates, the nature of the securitiesmarket of the country, repatriation of capital due toexchange controls and political circumstances.

It is the AMC’s belief that investment in foreign securitiesoffer new investment and portfolio diversificationopportunities into multi-market and multi-currencyproducts. However, such investments also entailadditional risks. Such investment opportunities may bepursued by the AMC provided they are consideredappropriate in terms of the overall investment objectivesof the Scheme. Since the Scheme may invest only partiallyin overseas securities, there may not be readily availableand widely accepted benchmarks to measure performanceof the Scheme. To manage risks associated with foreigncurrency and interest rate exposure, the Fund may usederivatives for efficient portfolio management includinghedging and in accordance with conditions as may bestipulated under the Regulations or by the RBI from timeto time.

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Overseas investments will be made subject to any/allapprovals, conditions thereof as may be stipulated underthe Regulations or by RBI and provided such investmentsdo not result in expenses to the Fund in excess of theceiling on expenses prescribed by and consistent withcosts and expenses attendant to international investing.The Fund may, where necessary, appoint otherintermediaries of repute as advisors, custodian/sub-custodians etc. for managing and administering suchinvestments. The appointment of such intermediariesshall be in accordance with the applicable requirementsof SEBI and within the permissible ceilings of expenses.The fees and expenses would illustratively include,besides the investment management fees, custody feesand costs, fees of appointed advisors and sub-managers,transaction costs and overseas regulatory costs.

To the extent that the assets of the Scheme will beinvested in securities denominated in foreign currencies,the Indian Rupee equivalent of the net assets, distributionsand income may be adversely affected by changes in thevalue of certain foreign currencies relative to the IndianRupee. The repatriation of capital to India may also behampered by changes in regulations concerning exchangecontrols or political circumstances as well as theapplication to it of other restrictions on investment.

E. Special Considerations

The Sponsor is not responsible or liable for any lossresulting from the operation of the Scheme beyond theinitial contribution of an amount of Rs.1,00,000 (RupeesOne Lakh) collectively made by it towards setting up theFund or such other accretions and additions to the initialcorpus set up by the Sponsor.

Neither this Offer Document nor the Units have beenregistered in any jurisdiction. The distribution of thisOffer Document in certain jurisdictions may be restrictedor totally prohibited and accordingly, persons who comeinto possession of this Offer Document are required toinform themselves about, and to observe, any suchrestrictions. No person receiving a copy of this OfferDocument or any accompanying application form in suchjurisdiction may treat this Offer Document or suchapplication form as constituting an invitation to them tosubscribe for Units, nor should they in any event use anysuch application form, unless in the relevant jurisdictionsuch an invitation could lawfully be made to them andsuch application form could lawfully be used withoutcompliance of any registration or other legal requirements.

Prospective investors should review / study this OfferDocument carefully and in its entirety and shall notconstrue the contents hereof or regard the summariescontained herein as advice relating to legal, taxation, orfinancial / investment matters and are advised to consulttheir own professional advisor(s) as to the legal, tax,financial or any other requirements or restrictionsrelating to the subscription, gifting, acquisition, holding,disposal (by way of sale, switch or Redemption orconversion into money) of Units and to the treatment ofincome (if any), capitalisation, capital gains, anydistribution, and other tax consequences relevant to theirsubscription, acquisition, holding, capitalisation, disposal(by way of sale, transfer, switch or conversion into money)

of Units within their jurisdiction of nationality, residence,incorporation, domicile etc. or under the laws of anyjurisdiction to which they or any managed funds to beused to Purchase / gift Units are subject and also todetermine possible legal, tax, financial or otherconsequences of subscribing / gifting, purchasing orholding Units before making an application for Units.

AIG Global Investment Group Mutual Fund / the AMChave not authorised any person to give any information ormake any representations, either oral or written, notstated in this Offer Document in connection with issueof Units under the Scheme. Prospective investors areadvised not to rely upon any information orrepresentations not incorporated in this Offer Documentas the same have not been authorised by the Fund or theAMC. Any subscription, Purchase or sale made by anyperson on the basis of statements or representationswhich are not contained in this Offer Document or whichare inconsistent with the information contained hereinshall be solely at the risk of the investor.

From time to time and subject to the Regulations, fundsmanaged by the affiliates / associates of the Sponsor mayinvest either directly or indirectly in the Scheme. Thefunds managed by these affiliates/associates may acquirea substantial portion of the Scheme’s Units and collectivelyconstitute a major investment in the Scheme. Accordingly,Redemption of Units held by such funds may have anadverse impact on the value of the Units of the Schemebecause of the timing of any such Redemption and mayaffect the ability of other Unit Holders to redeem theirrespective Units.

As the liquidity of the Scheme’s investments maysometimes be restricted by trading volumes, settlementperiods and transfer procedures, the time taken by theScheme for Redemption of Units may be significant inthe event of an inordinately large number of Redemptionrequests or of a restructuring of the Scheme’s portfolio.In view of this, the Trustee has the right, in its solediscretion, to limit redemptions (including suspendredemptions) under certain circumstances - please refer tothe paragraph “Right to Limit Redemptions” in Chapter VII.

Anti Money Laundering and Know Your Customer(KYC): In terms of the Prevention of Money LaunderingAct, 2002 ("PMLA") the rules issued there under and theguidelines / circulars issued by SEBI regarding the AntiMoney Laundering (AML) Laws, all intermediaries,including Mutual Funds, are required to formulate andimplement a client identification programme, and to verifyand maintain the record of identity and address(es) ofinvestors.

Know Your Client (KYC)

The need to "Know Your Customer" is vital for theprevention of money laundering. The AMC may seekinformation or obtain and retain documentation used toestablish identity either on its own or through anotheragency. It may re-verify identity and obtain any missing oradditional information for this purpose.

The AMC, under powers delegated by the Trustee, shallhave absolute discretion to reject any application, preventfurther transactions by a Unit Holder, delay in processingredemption as per applicable laws or regulations if

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(i) after due diligence, the investor / Unit Holder / aperson making the payment on behalf of the investordoes not fulfill the requirements of the "Know YourCustomer" or the AMC believes that the transaction issuspicious in nature as regards money laundering. In thisbehalf the AMC reserves the right to reject any applicationand effect a mandatory Redemption of Units allotted atany time prior to the expiry of 30 Business Days from thedate of the application.

(ii) The AMC determines in its sole discretion that theapplication does not or will not comply with any applicablelaws or regulations.

If the payment for Purchase of Units are made by a thirdparty (e.g. a power of attorney holder, a financing agency,a relative, etc.), the Unit Holder may be required to givesuch details of such transaction so as to satisfy the AMCof the source and/or consideration underlying thetransaction.

The Mutual Fund Industry is currently in discussions withan independent agency, CDSL Ventures Limited (to beknown as 'Central Agency) inorder to entrust them withthe responsibility of collection of documents relating toidentity and address and record keeping. As a token ofhaving verified the identity and address and for efficientretrieval of records, the Central Agency will issue anacknowledgement to each investor who submits anapplication and the prescribed documents to the CentralAgency. Investors who have obtained an acknowledgementcan invest in the schemes of the mutual fund by referringto /submitting the acknowledgement in lieu of submittinginformation and documents required under AML Laws.Investors who wish to obtain an acknowledgement haveto submit a completed Application Form ('the Form')along with all the prescribed documents listed in theForm, at any of the Point of Service ('POS'). The Form isavailable at our website (www.aiginvestments.co.in) andAMFI website (www.amfiindia.com). POS are thedesignated centers appointed by the Central Agency forreceiving the Forms, processing data and providing theacknowledgement. List of and location of POS are availableat www.amfiindia.com. On submission of application,documents and information to the satisfaction of the POS,the investor will be given an acknowledgement acrossthe counter. Subsequently, the Central Agency willscrutinize the information and documents submitted bythe investor. In case of any deficiency in the document /information, the form will be rejected.

PERMANENT ACCOUNT NUMBER (PAN)

As per the Securities and Exchange Board of India (SEBI)circular dated April 27, 2007, with effect from July 02,2007, Permanent Account Number (PAN) issued by theIncome Tax Authorities has been made the soleidentification number for all participants transacting inthe securities market including mutual funds, irrespectiveof the amount of transaction.

SEBI has further clarified vide letter dated June 25, 2007,that existing and potential investors, who do not havePAN should apply for PAN immediately and applicationsfor investment should be accompanied with the evidenceof having applied for PAN until December 31, 2007.

Thus, with effect from July 02, 2007 until December 31,2007:

1. All fresh investment applications (irrespective ofthe amount) have to be enclosed with a certifiedcopy of the PAN card.

The certification can be done by any of the following:

a. The distributor/broker through whomtransaction is done or

b. The office of AIG Global Investment GroupMutual Fund or

c. Investor Service Centers of CAMS (Registrar)or

d. Bank Manager attestation or

e. Notary

Please note that the original PAN card should be furnishedto any of the above for certification.

2. Investment applications without a certified copy ofPAN should enclose:

a. For amount less than Rs. 50,000 - A copy of theevidence of having applied for PAN(acknowledged copy of Form 49A) until PAN isreceived.

b. For amount Rs. 50,000 or more - A copy of theevidence of having applied for PAN(acknowledged copy of Form 49A) and acompleted Form 60/Form 61 along withaddress proof, until PAN is received

Applications which do not comply with any of the aboverequirements are liable to be rejected.

Further, with effect January 01, 2008, submitting a copyof the evidence of having applied for PAN / Form 60/Form61 will not be valid and it will be mandatory for allinvestors to provide a certified copy (as aforesaid) of thePAN card for all investments in the schemes of AIG GlobalInvestment Group Mutual Fund.

Suspicious Transaction Reporting: If after duediligence, the AMC believes that the transaction issuspicious in nature as regards money laundering, theAMC shall report any suspicious transactions tocompetent authorities under the PMLA and rules /guidelines issued there under by SEBI and RBI, furnishany such information in connection therewith to suchauthorities and take any other actions as may be requiredfor the purposes of fulfilling its obligations under thePMLA without obtaining the prior approval of the investor/ Unit Holder / a person making the payment on behalf ofthe investor.

Investor Protection: As the Scheme is a short termincome scheme, it is designed to offer investors liquidityand the Fund anticipates that investors will come in andout of the Scheme frequently. Such frequent purchasesand redemptions by investors can reduce the returns tolong term investors by increasing expenses of the Schemeand can also disrupt portfolio management strategies.Therefore, the Scheme is proposed to be managed withthese risks in mind.

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Though the Scheme has no limit on the number ofpurchases and redemptions by any investor, the AMCreserves the right, under powers delegated by theTrustee, to reject any application, prevent furthertransactions by a Unit Holder, or redeem the Units heldby the Unit Holder at any time prior to the expiry of 30Business Days from the date of submission of theapplication if, in the AMC's opinion, a Unit Holder hasbeen indulging in excessively frequent trading or if histrading has been or may be disruptive for the Scheme.

Investors are urged to study the terms of the Offer carefullybefore investing in the Scheme and to retain this OfferDocument for future reference.

DUE DILIGENCE CERTIFICATE

It is confirmed that:

1. The draft Offer Document forwarded to SEBI is in accordancewith the SEBI (Mutual Funds) Regulations, 1996 and theguidelines and directives issued by SEBI from time to time.

2. All legal requirements connected with the launching of theScheme and also the guidelines, instructions, etc. issued bythe Government of India and any other competent authority inthis behalf, have been duly complied with.

3. The disclosures made in the Offer Document are true, fairand adequate to enable the investors to make a well informeddecision regarding investment in the proposed Scheme.

4. All the intermediaries named in the Offer Document areregistered with SEBI and till date such registration is valid.

For AIG Global Asset ManagementCompany (India) Private Limited

Date : May 31, 2007 Signature : Sd/-

Place : Mumbai Name : Sonal Barot

Designation : Head - Compliance & Company Secretary

Note: The aforesaid Due Diligence Certificate dated May 31, 2007was submitted to Securities and Exchange Board of India on June 1,2007.

IV. Constitution of the Fund

A. The Fund

The AIG Global Investment Group Mutual Fund has beenconstituted as a Trust in accordance with the provisions of theIndian Trusts Act, 1882 (2 of 1882) vide a Trust Deed datedDecember 15, 2006. The Fund was registered with SEBI videregistration number MF/054/07/02 dated February 9, 2007.

The office of the Mutual Fund is at FCH House, Ground Floor,Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai400 013, India.

The objective of the Fund is to raise monies through the saleof units to the public or a section of the public under one ormore schemes for investing in securities.

B. The Sponsor

The sponsor of the AIG Global Investment Group Mutual Fundis AIG Capital Corporation (AIGCC), a company incorporatedunder the laws of Delaware, United States of America, havingits registered office at Corporation Services Center, 2711Centerville Road, Suite 400, Wilmington Delaware, USA 19808and its principal office at 70 Pine Street, 17th Floor, NewYork, New York, USA 10270.

AIGCC is 100% owned by American International Group, Inc.("AIG"), which was also incorporated in the State of Delaware,on June 9, 1967, as a successor to a business that was initiallystarted in 1919 in Shanghai, China. AIG is a holding companywhich, through its subsidiaries, is engaged in a broad range ofinsurance and insurance-related activities in the United Statesand abroad. AIG's primary activities include both generalinsurance and life insurance and retirement servicesoperations. Other significant activities include financial servicesand asset management. AIG's common stock is listed in theU.S. on the New York Stock Exchange as well as the stockexchanges in London, Paris, Switzerland and Tokyo.

AIGCC was incorporated mainly to consolidate all the non-insurance financial services businesses of AIG under onecompany. Many of AIGCC's direct and indirect subsidiariesare companies engaged in asset management, consumer financeand other non-banking finance activities. These companiesare located in the United States and around the world,including the United Kingdom, Ireland, Japan, Hong Kong,Thailand, Brazil and Canada, among other locations. Thefinancial statements of the direct and indirect subsidiaries ofAIGCC are consolidated in the audited consolidated financialstatements of AIG.

AIG Investments and the Sponsor.

AIG Investments comprises a group of international companieswhich provide investment advice and market assetmanagement products and services to clients around the world.

AIG Investments is headquartered in New York and has a totalof 44 investment offices employing over 2,000 employees asof 30 June 2007. Each of its member companies has thecapability to provide investment services to clients worldwide.Additionally, the extensive network and resources of the AIGcompanies, which operate in 130 countries and jurisdictions,complement AIG Investments network.

AIG Investments offers a wide range of investment capabilitiesdivided into five major groups - Equity, Fixed Income, RealEstate, Private Equity, Hedge funds and Other Alternate assetclasses. AIG Investments managed approximately USD 711billion in assets as of 30 June 2007. There are 44 officesoperating in regional centers in North America, Europe, SouthAmerica, Africa and Asia and employing over 1,900 persons.

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Given below is a brief summary of the Sponsor's (AIG Capital Corporation) unaudited financial information:(Amount in US $)

Description December 31, 2006 December 31, 2005 December 31, 2004

Total Revenue 6,340,947,389 5,310,449,043 4,273,468,908

Profit Before Tax 1,443,568,223 1,338,988,162 1,064,206,129 a

Profit After Tax 1,154,060,083 958,244,887 802,456,424 a

Free Reserves 6,372,035,079 5,751,618,693 4,849,187,815

Net Worth 5,580,997,280 5,159,686,714 4,300,388,754

Earnings per Share 45,103 54,223 52,766 b

Book Value per Share 637,205 575,163 484,920

Dividend (%) 305 150 110

Paid Up Capital (Equity) 2,666,402,330 2,393,943,066 1,928,900,306

Share Capital Suspense – – – c

Paid Up Capital (Preference) 5,000 5,000 5,000

a This amount represents income before equity in earnings(loss) of affiliated companies and minority interest.(Amount in US $)

December 31, 2006 December 31, 2005 December 31, 2004

Profit Before Tax 1,443,568,223 1,338,988,162 1,064,206,129

Taxes 289,508,140 380,743,275 261,749,705

Profit After Taxes 1,154,060,083 958,244,887 802,456,424

Equity in Earnings (loss) of Affiliated Companies 86,622,942 28,012,158 87,699,575

Minority Interest 789,649,218 444,022,964 362,496,344

Net Income 451,033,807 542,234,081 527,659,655

b Earnings per Share is calculated as follows: Net Income divided by Number of Shares - Common Stock. All common stock is ownedby AIG, Inc.

c. There is no additional amount subscribed but not issued. As such subscribed capital and issued capital are the same.

Definitions of Financial Terms used above under US GenerallyAccepted Accounting Principles:

Free Reserves is Retained Earnings plus Additional Paid inCapital ("APIC") for Common Stock excluding amounts paidabove par for Preferred Stock.Net worth is Common Stock plus APIC plus Retained Earningsless any Deferred Expenses and Intangible Asset, excludingPreferred Stock.Book Value per Share is the sum of Common Stock at par andFree Reserves divided by the number of shares of CommonStock, excluding Preferred Stock.Dividends are required only for Common Stock.Paid Up Capital (Equity) is Common Stock plus APIC.Share Capital Suspense is the additional amount subscribedbut not issued if subscribed capital and issued capital are notthe same.

Paid Up Capital (Preference) is Preferred Stock at par plusthe amount paid above par value for Preferred Stock.

Value of Preferred Stock is the amount paid at par plus theamount paid above par value for Preferred Stock.

Surplus in the Profit and Loss Account is Retained Earnings.

C. The Trustee Company (The Trustee)

AIG Trustee Company (India) Private Limited (the "Trustee"), acompany incorporated under the Companies Act, 1956 on October30, 2006 vide registration number U 93090 MH 2006 PTC 165286,has been appointed as the Trustee to the AIG Global InvestmentGroup Mutual Fund vide Trust Deed dated December 15, 2006.

The Registered Office of the Trustee is situated at FCH House,Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel,Mumbai 400 013.

I. Directors of the Trustee

The directors of the Trustee are:

Names, addresses and occupations of the directors Other Directorships of the directors

*Mr. Sunil Mehta 1. Tata AIG Life Insurance Company LimitedSorrento, Flat No. 6, Mount Pleasant Road, 2. Tata AIG General Insurance Company LimitedMalabar Hill, Mumbai 400 006, India, 3. AIG Systems Solutions Private Limited

4. AIG Capital India Private LimitedOccupation: Service 5. Kendall Holdings Limited

6. RMZ Properties Private Limited7. Vivek Hire Purchase and Leasing Limited8. Mellennia Infrastructure Private Limited

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Names, addresses and occupations of the directors Other Directorships of the directors

Mr. N. Rangachary 1. Central Warehousing Cold Chain Private LimitedBungalow No.8, Minister's Bungalow, Kundanbagh, 2. MTAR Technologies Private LimitedBegumpet, Hyderabad, India, 3. Max India Limited

4. Roots Multi Clean LimitedOccupation: Retired Government Servant 5. RT Exports Limited

Mr. Sunil Behari Mathur 1. Havells India LimitedA-20, Geetanjali Enclave (Ground Floor), 2. ITC LimitedNew Delhi 110 017, India 3. Grasim Industries Limited

4. EID Parry (I) LimitedOccupation: Advisor 5. UTI Bank Limited

6. IL&FS Limited7. Housing Development and Infrastructure Limited8. Indian Railway Catering & Tourism Corporation Limited9. UTI Technology Services Limited10. UTI Infrastructure & Services Limited11. National Stock Exchange Limited12. National Collateral Management Services Limited13. Munich Re India Services Private Limited14. EMD Locomotive Technologies Private Limited15. Administrator of the Specified Undertaking of the Unit Trust of India16. National Investment Fund17. SASF, IDBI18. Management Development Institute, Gurgaon19. Indian Institute of Capital Markets20. IDFC Trustee Co. Limited21. Universal Sompo General Insurance Company Limited22. Subiksha Trading Services Limited

Mr. Amal Ganguli 1. Hughes Communications India LimitedJ-6/7, DLF Phase-II, Gurgaon - 122 002, India 2. Tube Investments of India Limited

3. HCL Technologies LimitedOccupation: Chartered Accountant 4. New Delhi Television Limited

5. Videsh Sanchar Nigam Limited6. ML Infomap Private Limited7. Century Textiles and Industries Limited8. AVTEC Limited9. ICRA Limited10. Maruti Udyog Limited11. Aricent Technologies (Holdings) Limited12. ASCENDAS India Trust

* Mr. Sunil Mehta is a director associated with the Sponsor.

Mr. Sunil Mehta graduated from University of Delhi with Honoursin Bachelor of Commerce. He is a Fellow Member from the Instituteof Chartered Accountants of India. He is an alumnus of The WhartonSchool of Management, University of Pennsylvania, where hecompleted the Advanced Management Program (AMP).

Mr. N. Rangachary is a member of the three professional bodiesestablished in India, namely: (i) The Institute of CharteredAccountants of India; (ii) The Institute of Cost and Works Accountantsof India; and (iii) The Institute of Company Secretaries' of India. Heis an Honorary Fellow of the Actuarial Society of India. He joinedthe Indian Revenue Service in 1960 and retired as the Chairman ofthe Central Board of Direct Taxes in July, 1996. On 1st August,1996, he took over as the first Chairman of the Insurance Regulatoryand Development Authority and on its conversion into a statutorybody in April, 2000, became its first Chairman and retired on 9thJune, 2003. Presently, he is an advisor to the Finance Departmentof Government of Andhra Pradesh. He is also an advisor to variousother organisations engaged in trade, commerce and profession.

Mr. Sunil Behari Mathur - The Government of India has appointedMr. Mathur as the 'Administrator' of the Specified Undertaking ofthe Unit Trust of India (SUUTI).

A qualified Chartered Accountant and Cost Accountant, Mr. Mathurretired from Life Insurance Corporation of India (LIC) in October2004 as its Chairman, having joined the organization as the directrecruit in 1967. Mr. Mathur took charge as Chairman of LIC at atime when the Insurance Sector had just opened up. He has asuccessful track record of introducing new products in the InsuranceSector in a competitive environment.

Mr. Amal Ganguli - Mr. Amal Ganguli was educated at St Joseph'sCollege, North Point, Darjeeling and is a Fellow of the Institute ofChartered Accountants in England & Wales. He is an alumnus ofthe International Management Institute, Geneva and a Member ofthe New Delhi Chapter of Institute of Internal Auditors, Florida.

Mr. Ganguli was a manager at Price Waterhouse London/Calcuttabetween 1963 and 1969. In 1969, he was made partner Price

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Waterhouse/PricewaterhouseCoopers India and handled variousassignments (including Partner in charge, New Delhi office 1973-1996 and Chairman and Senior Partner -1996-2003) till he retiredin 2003. His areas of expertise include audit, investigations, mergersand acquisitions, tax and international tax. His clients companiesinclude reputed names such as the Thapar Group, the Birla Group,the DCM Group, IBM, Gillette, Alcatel, the HCL Group, WorldBank, SmithKline Beecham, Carrier, Hewlett Packard, Corningand several others.

II. Summary of the Substantive Provisions of the Trust Deed

Pursuant to the Trust Deed dated December 15, 2006 constitutingthe Fund and in terms of the SEBI Regulations, the rights andobligations of the Trustee, inter alia, are as under:

1. The Trustee Company has exclusive ownership of the assetsof the Schemes of the Fund (Trust Property) and holds thesame in trust and for the benefit of the Unit Holders.

2. The Trustee shall ensure that:

(a) the liability of a particular scheme of the Fund shall bemet out of the assets of the same scheme and shall in noway attach to or become a liability of any other scheme ofthe Fund; and

(b) proper and separate accounts and records are maintainedfor each of the schemes of the Fund.

3. The Trustee Company has the authority to appoint one ormore bodies corporate to act as an asset management companyand to enter into an investment management agreement withthem to float, promote and operate schemes of the Fundapproved by the Trustee and SEBI and to manage the fundsmobilised under various schemes of the Fund in accordancewith the provisions of the Trust Deed and the Regulations andsubject to supervision of the Trustee.

4. The Trustee Company is responsible for the management ofthe Fund and for providing information to the Unit Holders,the Sponsor, SEBI, and any other regulatory body and to ensurecompliance by the Mutual Fund /AMC of all statutory formalities.

5. The Trustee Company, through the AMC is, inter alia,empowered and entitled to:

(i) frame one or more Schemes for the issue of Units andframe such rules and regulations for the issue as it may inits absolute discretion deem fit;

(ii) acquire, hold, manage, trade, lend and dispose of stocksand securities of all kinds, subject to RBI approval;

(iii) acquire or enter into or deal in any derivative, option,hedging, swap or other contract of a similar nature,repurchase agreement transactions and to enter intosecurities lending and borrowing transactions,underwriting and sub underwriting contracts and placings;

(iv) calculate the offer, repurchase and Redemption prices ofUnits including inter alia the allowance to be made incomputing these prices for contingent liabilities;

(v) keep the capital and moneys of the Fund in call orrepurchase options or deposit with banks or otherfinancial institutions or companies or any other financialinstruments as may be permitted under the Regulations;

(vi) enter into agency arrangements with one or more personsfor the purposes of mobilizing collections for variousschemes of the Fund and displaying the advertisementsand other marketing materials;

(vii) enter into agreements or arrangements includingagreements/arrangements by way of tie-ups,collaborations, joint ventures with mutual funds, assetmanagement companies, financial institutions, investmentcompanies, banks and other institutions;

(viii) do any other kind of business connected with mobilisationof savings and investments;

(ix) accept contributions, grants, and donations;

(x) collect, get in and receive the profit, interest, dividendand income of the Trust Property from time to time asand when the same becomes due and receivable;

(xi) pay all costs, charges, expenses and outgoings of andincidental to the administration and execution of theTrust and the management and maintenance of theTrust Property and incurred for the same in accordancewith and subject to the limits under the Regulations asmay be stipulated from time to time;

(xii) appoint brokers, sub-brokers, agents, custodial agents,registrars, share transfer agents for the purpose ofpurchase and sale of securities, investment under theschemes of the Fund and to pay their charges;

(xiii) appoint and engage advocates, solicitors, valuers,chartered accountants, credit rating agencies, and othersuch advisers and experts for the purpose of the Schemeand to pay their remuneration and charges;

(xiv) do all such acts, deeds and things and exercise suchpowers and sign and execute all such documents, UnitCertificates, transfer forms, declarations, affidavits,indemnities as it may in its absolute discretion deem fit;

(xv) open one or more bank accounts, securities account/swith RBI and other banks (if permitted) and operatethe same;

(xvi) deal with all matters arising from the Fund/AMC, onthe one hand and Unit Holders on the other, and tosettle disputes, if any, with Unit Holders;

(xvii) generally to exercise all such powers as it may berequired to be exercised under the Regulations forthe time being in force and do all such matters andthings as may promote the Fund or as may be incidentalto or consequential upon the discharge of its functionsand the exercise and enforcement of all or any of thepowers and rights under the Trust Deed;

(xviii) pay out of the income of the Trust Property afterdeducting all expenses the interest and dividend inaccordance with the scheme and the Offer Documentapplicable to each scheme of the Fund;

(xix) conduct spot checks on the Asset ManagementCompany at such frequency and in such manner as itmay deem fit to ensure compliance with the provisionsof the Regulations including but not limited to provisionsgoverning pricing of units, payments into and out of theTrust Property, proper accounting of the income of theTrust and charging of expenses as permitted;

(xviii) subject to the provisions of the Regulations and theTrust Deed, exercise all powers and rights of a trusteeunder the Indian Trusts Act, 1882 to achieve the objectsof this Trust and protect the interests of the UnitHolders;

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(xix) invest in real estate or immovable property of anynature or to acquire any right, title and interest inimmovable property of any nature;

(xx) subscribe to any bonds or debenture or securitiesissued by institutions or bodies engaged in housingfinance;

(xxi) set up or constitute or manage or advise any offshorefund or scheme and to contribute to any corpus inrespect thereof or subscribe to any scheme framed bysuch offshore fund and to do all acts, deeds, mattersand things incidental thereto including operatingaccounts abroad, entering into an agency agreementwith a bank incorporated outside India;

(xxii) carry on activity of venture capital finance and ifnecessary for that purpose to frame any special Schemeor Schemes whether in India or abroad;

(xxiii) invest in the securities or in units of all other mutualfunds including offshore funds (subject to the guidelinesstipulated by SEBI from time to time);

(xxiv) keep deposits or to make advances to any company orbody corporate;

(xxv) institute/defend, conduct, compound or abandon anylegal proceedings for or on behalf of or in the name ofthe Trust or the Trustee or its officers or concerningthe affairs of the Trust and also to compound and allowtime for payment or satisfaction of any debts due andof any claims or demands by or against the Trust and torefer any differences to arbitration and observe andperform any awards thereof;

(xxvi) make and give receipts, releases and other dischargesfor moneys payable to the Trust and for the claims anddemands of the Trust;

(xxvii) appoint and at its discretion remove agents, todetermine their duties, to fix their emoluments andto acquire security in such instances and of such amountas it may think fit;

(xxviii)ascertain, appropriate and distribute the surplusgenerally or under various Schemes or under anyScheme to allocate unit capital to any new Scheme, todetermine and allocate income, profits and gains andexpenses in respect of any Scheme, to carry forward,reinvest or otherwise deal with any surplus and totransfer such sums as the Board may deem fit to oneor more reserve funds which may be established atthe discretion of the Board;

(xxix) enter into any contract with any Corporation or anyother organisation for the purpose of securing suchinsurance cover or such other benefits for the UnitHolders as may be given by the Corporation or otherorganisation;

(xxx) get the Units under any Scheme listed in one or morestock exchanges;

(xxxi) have the Trust registered or recognised by any stockexchange in India in its name or otherwise and to act asbrokers or sub-brokers;

(xxxii) act as underwriters or sub-underwriters in any issueof securities and to give bridge finance assistance againstany underwriting arrangements;

(xxxiii) procure the Trust or any such Scheme made by it to beregistered or recognised in any foreign country or place

for its activities and for such purpose, make suchinvestments and deposits as may be required by thelaws of such country or place;

(xxxiv)open one or more bank accounts for the purposes ofthe Trust, to deposit and withdraw money and fullyoperate the same; and

(xxxv) borrow funds, including for a temporary period, subjectto applicable provisions of the Regulations in force forthe time being.

6. The Trustee Company is responsible for supervising thecollection of all income due to be paid to the Scheme and forclaiming any repayment of tax and holding any income receivedin trust for the Unit Holders in accordance with the TrustDeed and the Regulations.

7. The Trustee shall act at all times in the interest of Unit Holdersand provide all such information to Unit Holders and SEBI asmay be specified by SEBI.

8. The Trustee Company shall inter alia:

(i) at no time acquire any asset out of the Trust Property,which involves the assumption of any liability which isunlimited or results in the encumbrance of the TrustProperty in any way, except to the extent permitted bythe Regulations;

(ii) not make or grant loans or guarantee loans except withthe prior approval of the Trustee and if so required, fromSEBI, in writing nor carry out at any time any activity incontravention of the Regulations;

(iii) take reasonable care to ensure that the schemes floatedand managed by the AMC are operated in accordancewith the Trust Deed, the offer document and theRegulations;

(iv) cause the AMC to ensure that the manner of calculatingthe offer, repurchase and Redemption prices of Units,including inter alia the allowance to be made in computingthese prices for contingent liabilities, would be inaccordance with the Regulations and any guidelines issuedby SEBI from time to time; and

(v) be bound to discharge all obligations, duties andresponsibilities entrusted to them under the Regulations.

9. The Trustee shall exercise due diligence as under:

General Due Diligence:

(i) The Trustee shall be discerning in the appointment of thekey personnel of the AMC;

(ii) The Trustee shall review the desirability or continuanceof the AMC if substantial irregularities are observed inany of the schemes and shall not allow the AMC to floatnew schemes;

(iii) The Trustee shall ensure that the Trust Property isproperly protected, held and administered by properpersons and by a proper number of such persons;

(iv) The Trustee shall ensure that all service providers holdappropriate registrations from SEBI or concernedregulatory authorities; and

(v) The Trustee shall report to SEBI of any specialdevelopments in the Fund.

Special Due Diligence:(i) The Trustee shall arrange for test checks of service

contracts at such frequency and in such manner as it shalldeem appropriate from time to time;

15

(ii) The Trustee shall obtain internal audit reports at regularintervals from independent auditors appointed by theTrustee;

(iii) The Trustee shall obtain compliance certificates at regularintervals from the AMC;

(iv) The Trustee shall hold meetings of the Board of Directorsof the Trustee regularly and frequently;

(v) The Trustee shall consider the reports of the independentauditor and compliance reports of the AMC at the meetingsof the Board of Directors of the Trustee for appropriateaction;

(vi) The Trustee shall maintain minutes of the meetings ofthe Board of Directors of the Trustee;

(vii) The Trustee shall prescribe and adhere to a code of ethicsby the Trustee, AMC and its personnel;

(viii) The Trustee shall communicate in writing with the AMCregarding any deficiencies and checking on the rectificationof deficiencies;

(ix) The Trustee shall ensure that the accounts maintained bythe AMC follow the accounting policies prescribed bySEBI or any other relevant authority and shall be in theprescribed format and have the prescribed contents;

(x) The Trustee shall procure that all necessary statementsin respect of the Fund and the Trust Property are preparedin the manner required by Regulations and make or causeto be made all reports, publications, notices and filingswith respect to the Fund required by Indian law;

(xi) The Trustee shall cause the balance sheet and accounts ofthe Trust to be prepared and submitted to the Sponsorfor the accounting year as soon as may be after the end ofeach accounting year;

(xii) The Trustee shall cause the affairs of the various schemesof the Trust in respect of every accounting year to beaudited by one or more auditors qualified to act as auditorsunder the law for the time being and obtain their reportand submit the same to SEBI or any other GovernmentAuthority, if required by the law in force. The auditorshall be appointed by the Trustee and the Trustee may inits discretion, determine out of what part or parts of theTrust Property or the income thereof, the cost of suchaudit shall be defrayed and may make such apportionmentof such costs as it thinks desirable. Such auditor shall notbe the same as the auditor appointed for the AMC.

10. The Trustee shall segregate the assets of the Trust from allother assets held by them whether beneficially or as trusteeof some other trust and shall also segregate and maintainseparate assets pertaining to each Scheme.

11. The Trustee shall be entitled to pay out of the Trust Propertyall costs, charges, expenses for preservation and protection ofthe Trust Property including costs, charges and expenses forinstituting any suits or defending any claims.

12. The Trustee may amend the Trust Deed with the prior approvalof SEBI and the Unit Holders where it affects the interest ofUnit Holders.

13. The Trustee Company may, subject to the Regulations, acquire,hold, develop, deal with and dispose of any movable orimmovable property either on ownership, rental or otherbasis whatsoever, with power to let or sublet the same withor without charging any compensation fee or rent as theTrustee may in its absolute discretion deem fit. However, no

investment shall be made in immovable property from theresources mobilised for the Scheme.

III. Trustee - Fees and Expenses

Pursuant to the Trust Deed, the Trustee, in addition to thereimbursement of all costs, charges and expenses incurred inor about the administration and execution of the Fund, isentitled to receive a fee from and out of the Trust Property. Asper the Trust Deed, the Trustee’s fee can be determined foreach Scheme separately. The fee for the Scheme will be0.001% per annum of the average daily net assets of theScheme. The Trustee fees shall be accrued on a daily basis butthe payment shall be made on a monthly basis.

IV. Trustee - Supervisory Role

The supervisory role of the Trustees will be discharged byreviewing the information and the operations of the Fundbased on the reports submitted at the meetings of the Trustees,by reviewing the reports submitted by the Internal Auditorand the bi-monthly and half yearly compliance reports.Presently, the Board of Trustees are required to hold a meetingat least once in 2 calendar months and at least 6 such meetingsare required to be held every year. During the current financialyear 3 meetings of the Board of Directors of the Trustee wereheld. The Audit Committee, comprising of all the directors onthe board of the Trustee with an independent director as itschairman, has been constituted pursuant to the SEBI circularMFD/CIR/010/024/2000 dated January 17, 2000 to, inter alia,review internal audit systems and reports from internal andstatutory auditors.

D. The Asset Management Company

I. Constitution

AIG Global Asset Management Company (India) PrivateLimited (the Investment Manager or the AMC), is a companyincorporated under the Companies Act, 1956 on October 30,2006 vide registration number U 74140 MH 2006 PTC 165284and having its registered office at FCH House, Ground Floor,Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai400 013.

In terms of the Investment Management Agreement (IMA)dated December 15, 2006 entered into between the Trusteeand the AMC, the AMC has been appointed as the InvestmentManager to the Fund.

The Investment Manager was approved by SEBI to act as theAMC for the Fund vide SEBI letter no. IMD/PM/86202/2007dated February 12, 2007. The AMC manages the Scheme /options of the Fund in accordance with the provisions of theInvestment Management Agreement, the Trust Deed, theRegulations and the objectives of each Scheme / option. TheAMC can be removed by the Trustee subject to the Regulations.

In accordance with the Regulations, an asset managementcompany, subject to certain conditions, is also permitted toundertake activities in the nature of portfolio managementservices, management and advisory services to offshore funds,pension funds, provident funds, venture capital funds,management of insurance funds, financial consultancy andexchange of research on commercial basis and such otheractivities as may be permitted by SEBI from time to time.Subject to these activities being assessed as desirable andeconomically viable and further subject to the approval of SEBI,the AMC may undertake any or all of these activities aftersatisfying itself that there is no potential conflict of interest.

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II. Board of Directors of the AMC

Names, Addresses and Occupations of the Directors Other Directorships of the directors

Dr. Isher Judge Ahluwalia 1. Berger Paints India Limited32, Aurangzeb Road, New Delhi 110 011, India

Occupation: Economist

Mr. Nanoo G. Pamnani 1. Bajaj Auto Limited21, EL Cid, 13A, Ridge Road, Malabar Hill, 2. Citibank Savings Incorporated, PhilippinesMumbai- 400006, India 3. Bajaj Auto Finance Limited

Occupation: Retired

Mr. Avinder Singh Bindra 1. J. J. Buildwell Private LimitedCourt Green 3, Ground Floor A, 2. Arx Analytics & Advisory Private LimitedLaburnum Complex, Sushant Lok,Gurgaon, Haryana - 122001 India

Occupation: Company Executive

*Ms. Tse Koon Hang Ada 1. AIG Asian Opportunity GP, LLC2/F, 25 South Bay Road, Hong Kong 2. AIG Asian Opportunity II GP Ltd.

3. AIG Asian Opportunity II, Ltd.Occupation: Service 4. AIG Indian Equity Advisors LLC

5. AIG Indian Sectoral Equity Fund LLC6. AIG Global Investment Corporation (Asia) Ltd.7. AIG Global Investment Corporation (Hongkong) Ltd.8. Firepro Systems Pvt. Ltd.9. Maini Precision Products Pvt. Ltd.10. Metropolitan Land Company Limited11. President Chain Store Corpation (Supervisor)12. Rustan Supercentres Inc.13. Seacliff Limited14. Yageo Corporation (Observer)

*Mr. Steven Guterman 1. AIG Capital India Private Limited75 Columbia Heights, Brooklyn, New York 11201 2. AIG Japan Securities, Inc

3. AIG Strategic Hedge Fund of FundsOccupation: Senior Managing Director 4. AIG Global Investment Fund Management Limited

5. Central Park Group, LLC6. Brooklyn Children's Museum (not-for-profit organization)

*Mr. Ravi Mehrotra 1. Ranbaxy Laboratories LimitedApartment No. 303, Taj Wellington Mews, 33, 2. The Philam Asset Management, IncNathalal Parekh Marg, Mumbai - 400 001, India 3. AIG Global Asset Management Corporation (Taiwan) Limited

4. AIG Capital India Private LimitedOccupation: Service

*Mr. Saurabh Sonthalia 1. AIG Capital India Private Limited (Alternate to Mr. Steven Guterman)(Alternate to Mr. Steven Guterman)Flat No. 17, 9th Floor, Lalit Building, 37,Nathalal Parekh Marg, Mumbai - 400 001, India

Occupation: Service

*Mr. Santosh Senapati 1. Owens Corning India Limited(Alternate to Ms. Tse Koon Hang Ada) 2. Maini Precision Products Private Limited1402, Taj President, 90, Cuffe Parade, 3. Firepro Systems Private LimitedMumbai- 400005, India

Occupation: Service

* Ms. Tse Koon Hang Ada, Mr. Steven Guterman, Mr. Ravi Mehrotra, Mr. Saurabh Sonthalia and Mr. Santosh Senapati are directorsassociated with the Sponsor.

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Dr. Isher Judge Ahluwalia: Mrs. Ahluwalia is Board Chair, IndianCouncil for Research on International Economic Relations (ICRIER),Member, National Manufacturing Competitive Council (NMCC)and Vice-Chairperson, Planning Board, Punjab. She served asDirector and Chief Executive of ICRIER from 1997 to 2001. DrAhluwalia received her Ph.D. from the Massachusetts Institute ofTechnology in 1976. Her book, 'Industrial Growth in India: Stagnationsince the Mid-Sixties', received the Batheja Memorial Award forthe best book on the Indian economy in 1987. Her book (co-editedwith Prof. I.M.D Little), ' India's Economic Reforms andDevelopment: Essays for Manmohan Singh', received wide acclaim.

Mr. Nanoo Pamnani began his career with Citibank India as aManagement Associate in 1967. He occupied various positions withCitigroup during his tenure such as Chairman - India, CitigroupCountry Officer - India, Head of Operations & Technology Director,London and Director - Strategic Technology, Operations & SpecialProjects.

Mr. Pamnani retired from Citigroup on December 31, 2006.

Mr. Pamnani is a B.A (Hons) and B.Sc. (Economics) from LondonSchool of Economics

Mr. Avinder Singh Bindra: Mr. Bindra spent 26 years withCitigroup and 4 years with HSBC in Hong Kong and Singapore.While at Citigroup, he was Managing Director of CiticorpInternational Ltd and later, at Salomon Smith Barney. He joined asHSBC in January 2001 as Co-Head Investment Banking, Asia-Pacificwith his last assignment there being Head of Financing & RiskAdvisory Group, Asia Pacific.

Mr. Bindra has a MBA from the Southern Methodist University atDallas, Texas and a Masters in International Management from theThunderbird, The Gavin School of International Management atGlendale, Arizona. His undergraduate degree is in Commerce fromthe Punjab University at Chandigarh, India

Ms. Tse Koon Hang Ada - Ms. Tse is President and CEO of AIGGlobal Investment Corporation (Asia) Ltd. (AIGGIC (Asia)) andheads AIG Investments Asian private equity practice. She serves asthe CEO of AIG Asian Opportunity Funds I and II. Prior to joiningAIGGIC (Asia) in 1996, she was engaged in financial advisory servicesand equity capital markets work at Morgan Stanley in New Yorkand Hong Kong. Before that, she was an attorney with Sullivan &Cromwell in New York. Ms. Tse received a BA in AppliedMathematics from Harvard University and a JD from Harvard LawSchool. She is an alumnus of the Stanford Business School ExecutiveProgram. Ms. Tse was appointed by the Hong Kong Government tothe Advisory Committee of the Hong Kong Securities and FuturesCommission. Additionally, she was recently selected by the AsiaSociety as one of 25 "Young Leaders" from the Asia-Pacific region.

Mr. Steven Guterman - Mr. Guterman is the Senior ManagingDirector, Head of Business Development of AIG Investments andis responsible for the Group's global institutional asset managementeffort, which includes new business development, marketing, clientservice and RFPs. He is also a Vice President of AIG Inc. Mr.Guterman joined AIG Investments through the acquisition ofAmerican General Investment Management (AGIM) in 2001. AtAGIM, Mr. Guterman held a similar position as Executive VicePresident and Head of Institutional Asset Management. Prior tojoining AGIM in 1998, he was a Managing Director and Head of U.S.Fixed Income Portfolio Management with Salomon Brothers AssetManagement. Mr. Guterman joined Salomon in 1983 as a researchanalyst where he pioneered the development of many of the firm'sproprietary quantitative models used for analyzing mortgage-backed

securities (MBS) including prepayment, option-adjusted spread(OAS) and asset/liability models. Mr. Guterman began his financialcareer in 1980 with Chase Manhattan Bank. He began hisprofessional career as a Principal Investigator at Brookhaven NationalLaboratory. Mr. Guterman earned a BS in applied mathematicsfrom the State University of New York at Stony Brook and an MBAin quantitative analysis from Long Island University.

Mr. Ravi Mehrotra: Mr. Mehrotra has completed his PGDBMfrom XLRI, Jamshedpur. He started his career in May 1985 withBank of America NT & SA in Kolkata. He subsequently moved toMumbai as a member of the Investment Banking and Treasurygroup and was responsible for managing the Bank's proprietaryGovernment Securities and Bond portfolios. In 1991, he left Bankof America and co-founded Prime Securities before joining KothariPioneer in 1993 as the Chief Investment Officer.

Prior to joining AIG, Ravi was President of Franklin TempletonAsset Management Company (July 2002-February 2006), which isone of the largest mutual funds in India with assets of approximatelyUS$ 4 Billion.

Mr. Saurabh Sonthalia (Alternate to Mr. Steven Guterman):Mr. Sonthalia is a member of The Institute of Chartered Accountantsof India and an alumnus of the Indian Institute of Management,Ahmedabad.

Prior to joining AIG, Mr. Saurabh Sonthalia was the Executive VicePresident and Head of Strategy & Business Development for DSPMerrill Lynch Fund Managers Limited based in Mumbai. Mr.Sonthalia began his career at DSP Merrill Lynch in investmentbanking and, in a career spanning over sixteen years, has extensiveexperience in investment banking, private equity and asset management.

Mr. Santosh Senapati (Alternate to Ms. Tse Koon Hang Ada):Mr. Senapati joined AIG in India in August 1997, where he is aManaging Director and is leading a team of professionals in AIG'sprivate equity business franchise in India. Prior to this he was withJardine Fleming India Securities Ltd. for about 2 years where hewas responsible for project finance and cross border advisoryservices. Prior to Flemings, Santosh spent four years with ABNAmro Bank and was responsible for the corporate and structuredfinance activities of the Bank in India. In addition Mr. Senapati hasworked for five years in the Projects Group of Oil India Ltd., an oilexploration and development company.

Mr. Senapati has a Bachelor's Degree in Mining Machinery fromthe Indian School of Mines, Dhanbad, and an MBA Degree from theIndian Institute of Management, Ahmedabad.

III. Duties and Responsibilities of the AMC and the materialprovisions of the Investment Management Agreement

The duties and responsibilities of the AMC shall be consistent withthe Regulations and the Investment Management Agreement. TheAMC shall discharge such duties and responsibilities as providedfor under the Regulations and the Investment ManagementAgreement. The AMC shall, in the course of managing the affairs ofthe Fund, inter alia:1) provide management, advisory and administrative services

for the Trust in accordance with the provisions of the IMA andany resolution of the Trustee Board from time to time;

2) formulate and devise various Schemes and invest the TrustFund in accordance with the objects/provisions of the TrustDeed, the Regulations, or circulars issued by SEBI from timeto time;

3) manage the Schemes of the Fund in accordance with therelevant rules and regulations applicable to them (including

18

the provisions of the relevant Offer Document applicable toeach Scheme) subject to directions from SEBI;

4) be responsible for the day-to-day management of the TrustProperty and the various Schemes of the Fund;

5) be responsible for floating and issuing Schemes for the Fundafter approval of the same by the Trustee Board and SEBI, aswell as investing and managing the funds raised under thevarious Schemes, in accordance with the provisions of theTrust Deed and the Regulations;

6) ensure that no Offer Document of a Scheme, key informationmemorandum, abridged half yearly results and annual resultsare issued or published without the prior approval of theTrustee Board or the Board of the AMC in writing, and alsoensure that such documents do not contain any statements ormatter extraneous to the Trust Deed or particulars stated inthe Offer Document for the Scheme approved by the TrusteeBoard and SEBI;

7) disclose the Repurchase Price and NAV of the various Schemesof the Fund to the investors, at such intervals as may be specifiedby the Trustee Board and in accordance with the Regulationsissued from time to time;

8) maintain books and records about the operation of variousSchemes of the Fund to ensure compliance with theRegulations, and submit a quarterly report on the functioningof each of the various Schemes of the Fund to the Trustee or atsuch intervals and in such manner as may be required orcalled for by the Trustee or by SEBI;

9) send periodical reports, as required under the Regulations, inaddition to any other reports called for by the Trustee or SEBIfrom time to time;

10) instruct the Auditors to examine the Trust's annual Statementof Accounts and to report on their correctness and authorisethe auditors to communicate directly with the Trustee at any time;

11) publish by public advertisement in newspapers and, if so thoughtfit, in any other manner, the un-audited half-yearly accountsand audited annual accounts of the various Schemes as requiredunder the Regulations;

12) at all times, ensure that the Trust Fund is segregated fromassets of the AMC and assets of any other funds for which theAMC is responsible;

13) exercise all due diligence and vigilance in carrying out its dutiesand in protecting the rights and interests of the Unit Holders.

IV. Investment Management Fees

The AMC is entitled to charge an investment managementand advisory fee at the rate of 1.25% per annum of the averagedaily net assets of the Scheme(s) outstanding in each financialyear for the net assets up to Rs. 100 Crores and at the rate of1.00% per annum of the average daily net assets outstandingin each financial year for the net assets in excess of Rs.100Crores.

V. Shareholding Pattern of the AMC

AIG Global Asset Management Company India Private Limited,incorporated on 30 October 2006, is 100% (except 1 share)owned by AIG Capital India Private Limited (AIGCI). AIG Capital

India is in turn 100% owned (except 1 share) by AIG CapitalCorporation.

AIG Capital Corporation ("AIGCC") is a holding companyincorporated in the State of Delaware on June 28, 2001, havingits registered office at Corporation Services Center, 2711Centerville Road, Suite 400, Wilmington Delaware, USA 19808and its principal office at 70 Pine Street, 17th Floor, NewYork, USA 10270. It is 100% owned by AIG.

* American International Group, Inc.

Shareholding Pattern of the AMC:

Name of the Shareholder Type of HoldingsHoldings

AIG Capital India Private Limited Equity Shares 99.99%

AIG Capital Corporation Equity Shares 0.01%

For details in relation to the activities of AIG Capital Corporation,please refer to the paragraph "The Sponsor" above.

VI. Other Activities of the AMC - Non-binding advisoryservices under Regulation 24(2) of SEBI (Mutual Funds)Regulations, 1996.

The AMC vide its letter dated May 31, 2007 and June 25, 2007had made an application to Securities and Exchange Board ofIndia under Regulation 24(2) of SEBI (Mutual Funds)Regulations, 1996 for providing non binding advisory servicesto:

1. AIG Global Investment Corporation (Asia) Limited whois Investment Manager for Irish domiciled AIG GlobalFunds - AIG India Equity Fund

and

2. Foreign Institutional Investors (FII) / Sub Accounts of FIIs/ Other Offshore entities (FIIS) who may be interestedin receiving advise on Indian markets in future.

SEBI has granted its no objection to the above activitiesproposed by the AMC vide its letter reference IMD/PM/98790/07 dated July 16, 2007.

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VII. Key Employees of the AMC and relevant experience

Name of the Designation Age Qualifications Total no. Assignments held Period From - ToEmployee of years of during last 10 years

Experience

Deepak Joshi Senior Manager- 36 B.Com 14 Principal PNB Asset Management Company September, 2004 - January, 2007Dealing- Equities Private Limited

Emkay Shares and Stocks Private Limited December, 2003 - September, 2004Swift Securities Limited January, 2000 - December, 2003VAR Shares and Stocks Private Limited January, 1992 - December, 1999

Huzaifa Husain Fund Manager- 32 PGDM 9 TATA AIG Life Insurance Co. Ltd. May, 2004 - Dec, 2006Equities B.Tech Principal PNB Asset Management Company August, 2000 - May, 2004

Private LimitedSBI Funds Management Private Limited May, 1997 - August, 2000

Manish Mehta National Head- 34 M.M.S 11 Kotak Mahindra Asset Management Company Limited July, 1999 - October, 2006Intermediary Channel B.Com GIO Sanmar Gilts Limited November, 1998 - June, 1999

Investmart India limited August, 1997 - October, 1998

Prateek Jain Head- Finance and 34 FCA 10 Howden Insurance Brokers India Private Limited April, 2004 - February, 2007Risk Management ACS ICICI Lombard General Insurance Company Limited April, 2001 - March, 2004

ICWA Oman National Investment Corporation Holding October, 1998 - July, 2000B.Com A.F. Ferguson and Co. March 1997 - September 1,998

Rajiv Maniar National Head- 35 M.M.S 10 Kotak Mahindra Bank Limited February, 2005 - January, 2007Institutional Sales B.E. ING Investment Management (India) Private Limited June, 2003 - February, 2005

Zurich Asset Management Company India December, 1999 - June, 2003Private LimitedITC Threadneedle Asset Management Company Limited June, 1997 - December, 1999Godrej GE Appliances Private Limited August, 1994 - August, 1995

Ruchi Malhotra Equities Analyst 24 PGDM 2 JP Morgan Services India Private Limited January, 2005 - February, 2007B.Com ICICI Bank June, 2004 - January, 2005

Ruchir N. Parekh Assistant Vice 35 MBA 10 HDFC Asset Management Company Limited February, 2003 - April, 2007President - Fixed B.Com Bear Stearns & Co., NY October, 2000 - March, 2002Income Moody's Investors Service, NY June, 1997 - October, 2000

Sandeep Bagla Chief Investment 38 PGDM 13 Principal PNB Asset Management Company Private Ltd. November, 2004 - July, 2007Officer- Fixed Income B.Sc. (Economics) Reliance Capital Asset Management Company Limited January, 2003 - November, 2004

ABN AMRO Securities May, 2000 - January, 2003ICICI Limited March, 1998 - May, 2000ITC Classic Finance May, 1994 - March, 1998

Sarju Simaria Head- Operations 39 ACA 14 HDFC Asset Management Company Limited June, 2004 - September, 2005B.Com Sun F&C Asset Management Company March, 2000 - June, 2004

Canbank Mutual Fund April, 1996 - March, 2000

Saurabh Sonthalia Chief Executive 41 PGDM 16 DSP Merrill Lynch Fund Managers Ltd. May, 2001 - July, 2006Officer ACA iNestor Advisors Private Limited 2000 - 2001

B.Com BNP Prime Peregrine India 1999 - 2000DSP Merrill Lynch 1994 - 1999

Siddhartha Singh Head- Product 30 M.M.S 7 Reliance Capital Asset Management Company Limited July, 2004 - November, 2006Development B.Sc. ABN AMRO Bank October, 2002 - July, 2004

IDBI Bank Limited January, 2000 - October, 2002

Sonal Barot Head- Compliance 40 F.C.S 19 HDFC Asset Management Company Limited December, 2003 - July, 2005and Company B.Com SBI Funds Management Private Limited August, 2001 - November, 2003Secretary Chrysalis Capital September, 2000 - July, 2001

Walchand Cricketnext.com Limited April, 2000 - September, 2000Kothari Global Limited November, 1992 - March, 2000

Tushar Pradhan Chief Investment 39 MBA 14 HDFC Asset Management Company Limited July, 2000 - December, 2006Officer- Equities B.Com HDFC Limited April, 1995 - June, 2000

Usha Mallya Assistant Vice 36 MBA 13 Principal PNB Asset Management Company April, 2002 - August, 2006President- Customer BA Private LimitedService Proactive Communications May, 1997 - March, 2001

Direm Marketing Services Private Limited May, 1996 - May, 1997DHL Worldwide Express August, 1993- May, 1996

Vikram Duggal Head- Human 32 PGDPM&IR 9 ICICI Prudential Life Insurance Co. Limited February, 2005 - July, 2006Resources B.Sc Hindustan Lever Limited May, 1997 - February, 2005

Vikram Saha Senior Manager- 34 PGPM 9 Franklin Templeton Asset Management (India) May, 2004 - December, 2006Marketing B.Com Private Limited

Birla Sun Life Asset Management Company Limited June, 2003 - May, 2004Zurich Asset Management Company India Private Limited July, 2000 - June, 2003ANZ Grindlays Bank April, 1995 - May, 1998

Vikrant Mehta Senior Manager- 36 CFA 12 NVS Brokerage Private Limited April, 2003 - December, 2006Dealing- Fixed M.S. JM Morgan Stanley Fixed Income Securities Private July, 2000 - April, 2003Income Limited

Mata Securities India Private Limited November, 1994 - July, 2000

Vinay Sharma Equities Analyst 28 PGDCM 2 JP Morgan Services India Private Limited December, 2004 - February, 2007B.Arch UTI Bank June, 2004 - December, 2004

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VIII.Fund Manager

Mr. Sandeep Bagla is the fund manager who will manage theinvestments of the Scheme. Details of his experience andqualifications have been provided in the table of key employeesabove.

IX. Compliance Officer

The Compliance Officer of the Fund is Ms. Sonal Barot.

X. Investors Relations Officer

The Investor Relations Officer of the Fund is Ms. Usha Mallyaand she may be contacted at the corporate office of the AMCat FCH House, Ground Floor, Peninsula Corporate Park, G.K. Marg, Lower Parel, Mumbai - 400 013.

E. The Registrar and Transfer Agent

Computer Age Management Services Private Limited("CAMS") has been appointed to act as registrar and transferagent to the Scheme in accordance with the Registrar andTransfer Agent Agreement dated February 15, 2007. CAMS isregistered with SEBI under the SEBI (Registrar and TransferAgents) Regulations, 1993 vide registration no. INR000002813.As registrar to the Scheme, CAMS will handle the processingof all Unit Holders' Purchase / Redemption transactions,maintenance of their folio details, processing of dividends /commission payments, handling of investor servicing etc. Theboards of the Trustee and the AMC have satisfied themselvesthat CAMS can provide the service required and has adequatefacilities and systems capabilities. CAMS will be paid fees inaccordance with the agreed terms and conditions and asestimated in the table pertaining to the recurring expenses inrespect of the Scheme. Accordingly, the recurring expenseswill be borne by the Unit Holders of the Scheme. The Fund(acting through the Trustee) has the right to change theRegistrar in certain circumstances.

F. The Custodian

Citibank, NA, Mumbai (the "Custodian") has been appointedas custodian of the Scheme. The Custodian is registered withSEBI under the SEBI (Custodians of Securities) Regulations,1996 vide registration number IN/CUS/004 dated April 07,1998. The Fund has entered into a Direct Custodial ServicesAgreement dated February 15, 2007 with the Custodian(Custody Agreement), whose principal responsibilities underthe said Agreement are to:

provide custodial service to the Fund;

ensure that benefits due on the holdings are received;

ensure segregation of assets between different schemesof the Fund;

provide detailed information and other reports asrequired by the AMC;

maintain confidentiality of the transactions; and

be responsible for any loss or damage to the assetsbelonging to the Scheme due to its negligence, willfulmisconduct, fraud or breach of the Custody Agreementor the negligence, willful misconduct or fraud of its agents/nominees or any branch or subsidiary.

The Custodian shall not assign, transfer, hypothecate, pledge,lend, use or otherwise dispose of any assets or property ofthe Fund, except pursuant to instruction from the Trustee /AMC or under the express provisions of the Custody Agreement.

The Custodian will be entitled to remuneration for its servicesin accordance with the terms of the Custody Agreement andas estimated in the table pertaining to the recurring expensesin respect of the Scheme. Accordingly, the recurring expenseswill be borne by the Unit Holders of the Scheme. The Trusteehas the right to change the Custodian in certain circumstances.

The AMC and the Trustee have satisfied themselves that noneof the intermediaries have been prohibited by SEBI fromcarrying on their respective activities.

G. The Fund Accountant

Citibank, NA, Mumbai has been appointed as the fundaccountant for the Scheme. Citibank, NA provides fundaccounting, NAV calculation and other related services inaccordance with a Funds Administration Services Agreementdated February 15, 2007 executed between the AMC andCitibank, NA.

Citibank, N.A. is entitled to remuneration for its services inaccordance with the terms of the Funds AdministrationServices Agreement and such remuneration will be borne bythe AMC and not by the Unit Holders of the Scheme. TheAMC has the right to change the fund accountant in certaincircumstances.

H. The Auditors

S. R. Batliboi & Co., Chartered Accountants having their officesat 6th Floor, Express Towers, Nariman Point, Mumbai - 400021 have been appointed as the auditors of the Fund in termsof the Regulations. The audit fees for the Scheme will beborne by the Unit Holders as part of the recurring expensesof the Scheme. The Trustee has the right to change the Auditors.

I. The Collection Banks

The Collection Banks to the NFO will be HDFC Bank Ltd. andsuch other banks as may be appointed by the AMC andregistered with SEBI and authorised to act as collection banks.Applications for the NFO will be accepted at DesignatedCollection Centres. The details are mentioned at the end ofthis Offer Document. Any charges levied by the bank(s) willbe borne by the investors in the NFO.

V. Investment Objective, Investment Strategy,Investment Pattern and Risk Profile And

Limitations of The Scheme

A. AIG India Treasury Plus Fund

1. Type of SchemeAn open ended Income Fund with three Plans – Retail Plan,Institutional Plan and Super Institutional Plan

AIG India Treasury Plus Fund – Retail Plan: This Planis for investors seeking to make a first time purchase ofRs. 10,000/- and above.AIG India Treasury Plus Fund – Institutional Plan:This Plan is for institutional investors seeking to make afirst time purchase of Rs. 1 crore and above.AIG India Treasury Plus Fund – Super InstitutionalPlan: This Plan is for institutional investors seeking tomake a first time purchase of Rs. 10 crore and above.

All the above plans will have a common portfolio. However,the returns under each Plan are expected to vary having regardto the specified expense ratio under the relevant Plan.

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2. Investment Objective

The primary investment objective of the Scheme is to seek togenerate optimal returns commensurate with low risk and ahigh liquidity, from a portfolio constituted of debt securitiesand money market securities.

There is no assurance that the objective of the Scheme will berealised and the Scheme does not assure or guarantee anyreturns.

3. Investment Strategy

This scheme is meant for investors to deploy their funds for ashort period of time. The fund will be managed according tothe investment objective, thereby seek to generate reasonablereturns commensurate with low risk. The scheme will investin money market and other debt securities and shall maintainmoderate to high liquidity for the purpose of meeting theliquidity requirements of the investors.

The investment team of the AMC will take an active view onthe key drivers affecting short term interest rate scenario aswell as liquidity. This will include various parameters of theIndian economy, as well as developments in global markets.Investment views / decisions will be a combination of creditanalysis of individual exposures, analysis of macroeconomicfactors and other relevant factors to estimate the direction ofinterest rates and level of liquidity, in an attempt to optimizethe risk adjusted returns on the portfolio.

The credit quality of the portfolio will be maintained andmonitored using in-house research capabilities as well as inputsfrom external sources such as independent credit ratingagencies. The investment team will primarily use a bottom upapproach to assess the quality of the security / instrument(including the financial health of the issuer) as well as theliquidity of the security.

Investments in debt instruments carry various risks such asinterest rate risk, liquidity risk, default risk, reinvestmentrisk etc. Whilst such risks cannot be eliminated, they may beminimized through diversification and effective use of hedgingtechniques (explained later).

4. Investment Pattern and Risk Profile

The Scheme will invest the entire corpus in debt and moneymarket securities. There will be no investment in equity andequity related products. Under normal circumstances, it isanticipated that the asset allocation shall be as follows:Instrument Minimum Maximum Risk

Debt* Instruments including 50% 100% LowGovernment Securities,Corporate Debt, Other debtinstruments and Money MarketInstruments with averagematurity less than equal to12 months or have putoptions within a period notexceeding 12 months

Debt* Instruments including 0 % 50% Low toGovernment Securities, MediumCorporate Debt and otherdebt Instruments withaverage maturity greaterthan 12 months

*Debt securities may include securitized debts upto 75% ofthe net assets

The Scheme may invest in derivatives up to 100% of the netassets of the Scheme for the purpose of hedging and portfoliobalancing purposes. The Scheme may also invest in permittedoffshore instruments for diversification.

Money market securities include, but are not limited to,Treasury Bills, Commercial Paper of Public SectorUndertakings and Private Sector Corporate Entities, InterBank Call and Term Money*, CBLO, Certificates of Deposit ofScheduled Commercial Banks, Financial Institutions andDevelopment Financial Institutions, Bills of Exchange/Promissory Notes of Public Sector and Private SectorCorporate Entities (co-accepted by banks), Governmentsecurities with unexpired maturity of one year or less andother Money Market securities as may be permitted by SEBI/RBI from time to time and in the manner prescribed underthe Regulations.

* At present Mutual Funds are not permitted to participate inInter Bank Calls. The Scheme will participate in Inter Bank Callsonly when Mutual Funds are permitted to do so.

Debt securities include, but are not limited to, Debt Obligationsof the Government of India, State and Local Governments,Government Agencies, Statutory Bodies, Public SectorUndertakings, Public Sector Banks or Private Sector Banks orany other Banks, Financial Institutions, Development FinancialInstitutions, and Corporate Entities.

The Debt Securities (including money market instruments)referred to above could be fixed rate or floating rate, listed,unlisted, privately placed or securitised debt securities, amongothers, transacted on an outright or repo / reverse reposbasis, as permitted by regulation.

The scheme may also invest in deposits of ScheduledCommercial Banks as permitted under Regulations /Guidelines.

The Investment Manager will invest only in those debtsecurities that are rated investment grade by a domestic creditrating agency authorised to carry out such activity, such asCRISIL, ICRA, CARE, FITCH, etc. or in unrated debt securities,which the Investment Manager believes to be of equivalentquality. Where investment in unrated debt securities is soughtto be made, the specific approval of the Board of Directors ofthe AMC and Trustee shall be obtained prior to investment.

5. Benchmark Index

The Benchmark for the Scheme is CRISIL Liquid Fund Index.Performance comparisons will be made vis-à-vis thebenchmark.

6. Underwriting

The Scheme does not propose to underwrite securities ofother issuers.

7. Scrip Lending by the Fund

If permitted by SEBI under extant Regulations / guidelines,the Scheme may also engage in scrip lending. The AMC shallcomply with all reporting requirements and the Trustee shallcarry out periodic review as required by SEBI guidelines. Scriplending means the lending of stock to another person or entityfor a fixed period of time, at a negotiated compensation. Thesecurities lent will be returned by the borrower on expiry ofthe stipulated period.

The AMC will apply the following limits, should it desire toengage in scrip lending:

22

1. Not more than 20% of the net assets of the Scheme cangenerally be deployed in scrip lending; and

2. Not more than 5% of the net assets of the Scheme cangenerally be deployed in scrip lending to any singlecounter-party.

Various risks associated with scrip lending, such as counter-party risks, liquidity and other market risks, are described inChapter I of this Offer Document.

B. Investment in Overseas Financial AssetsThe Scheme may invest in the securities (including MutualFund Units) in overseas markets in accordance with guidelinesstipulated in this regard by SEBI and RBI from time to time.Investing in overseas markets could be both rewarding aswell as challenging. Under normal circumstances, the Schemeshall not have an exposure of more than 25% of its net assetsin such securities, subject to regulatory limits.

Since the Scheme will invest only a portion of its Net Assets inoverseas securities, there may not be readily available andwidely accepted benchmarks to measure the performance ofthe Scheme's investments to the extent of exposure tooverseas securities.

Easy access, transparent regulations and a breadth of varietyin terms of classes of investors have contributed to investorconfidence in the stability and functioning of global markets.Besides, better access to information on the financial health ofmany foreign companies helps fund managers make informedinvestment decisions.

Although these benefits are very attractive, one must not losesight of the fact that risks also exist with regard to investmentsin foreign markets. These include fluctuating currency prices,relevant regulations of exchanges/countries, restrictions onrepatriation of investments/profits, financial reportingstandards, liquidity and political instability, among others.

The AMC may invest in foreign debt securities, as deemedappropriate and in accordance with guidelines stipulated inthis regard by SEBI and RBI from time to time. The AMCendeavors to manage such risks through the use of appropriatecredit analysis.

C. Investments in DerivativesThe Scheme may invest in various derivatives instrumentsincluding interest rate swaps and forward contracts which areavailable for investment in Indian Markets from time to timeand which are permissible under the Regulations and by theRBI from time to time. Investment in such instruments willbe made in accordance with the investment objective and thestrategy of the Scheme to protect the value of the portfolio.The investments shall also be subject to the internal limits asmay be laid down from time to time and such limits andrestrictions as may be prescribed by the Regulations or anyother regulatory body.

Concepts and Examples (for illustrative purpose only):

Derivatives are financial contracts of pre-determined fixedduration, whose values are derived from the value of anunderlying primary financial instrument, commodity or index,such as: interest rates, exchange rates, commodities, andequities.

Interest Rate Swaps

Interest Rate Swaps is an agreement between two parties(counterparties) to exchange payments at specified dates on

the basis of a specific amount with reference to a specifiedreference rate. Swap Agreements provide for period paymentdates for both parties where payments are netted and onlythe net amount is paid to the counterparty entitled to receivethe net payment. Consequently, the Scheme’s currentobligations (or rights) under a swap agreement will generallybe equal only to the net amount to be paid or received underthe agreement, based on the relative values of the possessionheld by each counterparty.

Example of a swap transaction:

Assume that the Scheme has a Rs. 50 crore floating rateinvestment linked to MIBOR (Mumbai Inter Bank OfferedRate). Thus, the Scheme has a potential interest rate risk andstands to incur a loss if the interest rate moves down. Tohedge this interest rate risk, the Scheme can enter into a 6month MIBOR swap on July 1, 2007 for 6 months that is uptoJanuary 1, 2008. Through this swap, the Scheme will receive afixed determined rate (assume 8%) and pays the ‘benchmarkrate’ (MIBOR), which is fixed by an intermediary who runs abook and matches deals between various counterparties, suchintermediary could be the NSE or the Reuters. This swapwould effectively lock in the interest rate of 8% for the next6 months, eliminating the daily interest rate risk.

On January 1, 2008 the Scheme is entitled to receive intereston Rs. 50 crore at 8% for 180 days i.e., Rs. 2 crores (thisamount is known at the time the swap is concluded) and willpay the compounded benchmark rate. The counterparty isentitled to receive the daily compounded call rate for 180 daysand pay 8% fixed rate. On January 1, 2008, if the total intereston the daily overnight compounded benchmark rate is higherthan Rs. 2 crore, the Scheme will pay the difference to thecounterparty. If the daily compounded benchmark rate is lower,then the counterparty will pay the Scheme the difference.

Effectively, the Scheme earns interest at the rate of 8% p.a.for 6 months without lending money for 6 months fixed, whilstthe counterparty pays interest @ 8% p.a. for 6 months onRs. 50 crores without borrowing for 6 months fixed.

Forward Rate Agreement

Forward rate agreement is a transaction in which thecounterparties agree to pay or receive the difference betweenan agreed fixed rate and the interest rate prevailing on astipulated future date, based on a notional amount, for anagreed period. As the interest rate is fixed now for a futureperiod, the only payment is the difference between the agreedfixed rate and the reference rate in the future. As in the caseof interest rate swaps, only notional amounts are exchanged.

Assume that on June 30, 2007, the 90 day commercial paper(CP) rate is 8.75% and the Scheme has an investment in a CPof face value Rs. 25 crores which is going to mature onSeptember 30, 2007. If the interest rates are likely to remainstable or decline after September 2007, and if the fundmanager,who wants to re-deploy the maturity proceeds for 3more months, does not want to take the risk of interest ratesgoing down, he can then enter into a following forward rateagreement (FRA) say as on June 30, 2007 :

He can receive 3 X 6 FRA on June 30, 2007 at 8.75% (FRA ratefor 3 months lending in 3 months time) on the notional amountof Rs. 25 crores, with a reference rate of 90 day CP benchmark.If the CP benchmark on the settlement date i.e. September30, 2007 falls to 8.5%, then the Scheme receives the difference

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8.75 - 8.5 i.e. 25 basis points on the notional amount Rs. 25crores for 3 months. The maturity proceeds are thenreinvested at say 8.5% (close to the benchmark). The scheme,however, would have locked in the rate prevailing on June 30,2007 (8.75%) as it would have received 25 basis points moreas settlement amount from FRA. Thus the fund manager canuse FRA to mitigate the reinvestment risk.

In this example, if the rates move up by 25 basis points to 9%on the settlement date (September 30, 2007), the Schemeloses 25 basis points but since the reinvestment will thenhappen at 9%, effective returns for the Scheme is unchangedat 8.75%, which is the prevailing rate on June 30, 2007.

Forward Contracts:

Forward contract is a transaction in which the buyer and theseller agree upon the delivery of a specified quality (ifcommodity) and quantity of underlying asset at apredetermined rate on a specified future date.

Assume that on June 30, 2007, the scheme has invested 1million dollars in a US treasury security. Fund manager expectsthat the yields in the US will come down in the next 6 monthsand plans to sell the asset on December 31, 2007 to book thegain. Rupee is trading at Rs. 44 to a US Dollar on June 30,2007. If rupee appreciates compared to the Dollar in these 6months to say Rs. 43.50 per Dollar, the Scheme will earnlower returns in Rupee terms when the fund manager sellsthe investments on December 31, 2007 and converts theproceeds into Rupees. He can mitigate this exchange rate riskby entering into a forward contract to sell 1 million dollars onJune 30, 2007 for value December 31, 2007 (6 month forward)and receive the prevailing premium of say 40 paise per Dollari.e. he has locked in a rate of Rs. 44.40 per US Dollar fordelivery on December 31, 2007. With this the Scheme is notexposed to the loss of Rupee appreciation or profit from Rupeedepreciation.

Please note that the above examples are based onassumptions and are used only for illustrative purposes.

The AMC retains the right to enter into such derivativetransactions as may be permitted by the SEBI regulationsfrom time to time.

D. Fundamental Attributes

In terms of the Regulations and SEBI’s circular dated February4, 1998, “Fundamental Attributes” referred above shall mean:

1. Type of Scheme, i.e. an Open Ended Income Scheme

2. Investment Objectives and change in InvestmentPattern while retaining the option to alter the assetallocation for a short term period on defensiveconsiderations, the intention at all times being to protectthe interests of the Unit Holders.

3. Terms of Issue relating to Liquidity provisions suchas Repurchase/ Redemption, aggregate fees,expenses charged to the scheme

In accordance with Regulation 18(15A) of the Regulations,the Trustee shall ensure that no change in the fundamentalattributes of the Scheme or the Fund or the fees andexpenses payable or any other change which wouldmodify the Scheme and affect the interest of the UnitHolders, will be carried out unless:

1. a written communication about the proposed changeis sent to each Unit Holder and an advertisement is

given in one English daily newspaper havingnationwide circulation as well as in a Marathi dailynewspaper with wide circulation published inMumbai (as the head office of the Fund is situatedthere); and

2. the Unit Holders are given an option to exit at theprevailing NAV without any Exit Load.

E. Borrowing Powers

Under the Regulations, the Fund is allowed to borrow tomeet the temporary liquidity needs of the Scheme for thepurpose of repurchase, Redemption of Units or payment ofinterest or dividend to the Unit Holders. Further, as perRegulations, the Fund shall not borrow more than 20% of thenet assets of the Scheme and the duration of such borrowingshall not exceed a period of 6 months.

The Fund may enter into necessary arrangements with banks/ financial institutions for borrowing purposes. The Schememay bear the interest charged on such borrowings.

F. Investment in the Scheme by the AMC, Sponsor or theirAffiliates

Subject to the Regulations, the AMC, the Sponsor, the Trusteeand/or their associates or affiliates, may invest either directlyor indirectly in the Scheme during the NFO and / or OngoingOffer Period. However, AMC shall not charge any investmentmanagement and advisory services fee on its own investmentin the Scheme.

G. Procedure and Recording of Investment Decisions

All investment decisions relating to the Scheme will beundertaken by the AMC in accordance with the Regulationsand the investment objectives specified in this OfferDocument. All investment decisions taken by the AMC inrelation to the corpus of the Scheme shall be recorded.

With regard to investments in debt instruments, individualscrip wise reasons shall be recorded by the Fund Manager atthe time of placing individual orders on the dealing desk. Adetailed report will be made before taking any decision toinvest in a new company. Performance of the Scheme willperiodically be tabled before the Boards of the AMC and theTrustee respectively. Performance of the Scheme vis-à-visbenchmark indices would be monitored by the Boards of theTrustee and the AMC periodically. Further, the Boards of theTrustee and the AMC will also review the performance of theScheme in the light of performance of the mutual fund industryas published from time to time by independent researchagencies and financial newspapers and journals.

The AMC has appointed an Investment Committee comprisingthe Chief Executive Officer, the Chief Investment Officer -Equities, Chief Investment Officer - Fixed Income, Head -Compliance and Head - Finance and Risk Management. TheCommittee's role is to lay down the broad investment policyfor the Scheme, review the policy and to review the portfolioand performance of the Scheme periodically. However theday to day investment management decision will solely be ofthe Fund Manager of the Scheme.

H. Portfolio Turnover

The Scheme being an open ended Scheme, it is expected thatthere would be a number of subscriptions and Redemptionson a daily basis. Consequently, it is difficult to estimate withany reasonable measure of accuracy, the likely turnover in theportfolio.

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I. Overview of Debt Markets

Indian fixed income market, one of the largest and mostdeveloped in South Asia, is now well integrated with the globalfinancial markets. Increase in the limit of foreign institutionalinvestors’ investment in the domestic fixed income marketto 4.7 billion dollars and a road map for the convertibility ofRupee will certainly result in attracting global investors to theIndian Market. Screen based order matching system developedby the Reserve Bank of India (RBI) for trading in governmentsecurities, straight through settlement system for the same,settlements guaranteed by the Clearing Corporation of Indiaand innovative instruments like CBLO have contributed inreducing the settlement risk and increasing the confidencelevel of the market participants.

The RBI reviews the monetary policy four times a year givingthe guidance to the market on direction of interest ratemovement, liquidity and credit expansion. The central bankhas been operating as an independent authority, formulatingthe policies to maintain price stability and adequate liquidity.Bonds are traded in dematerialised form and institutionalinvestors’ preference for listed instruments has resulted inmost of the bonds getting listed. This has improved thedisclosure standards by the issuers. Credit rating agencieshave been playing an important role in the market and are animportant source of information to manage the credit risk.

Government (Central and State) is the largest issuer of debtin the market. Public sector enterprises, quasi governmentbodies and private sector companies are other issuers.Insurance companies, provident funds, banks, mutual funds,financial institutions, corporates and FIIs are major investorsin the market. Government loans are available up to 30 yearsmaturity. Variety of instruments available for investmentsincluding plain vanilla bonds, floating rate bonds, money marketinstruments, structured obligations and interest ratederivatives make it possible to manage the interest rate riskeffectively. Daily average turnover in the market ranges fromRs. 500 crores to Rs. 10,000 crores. 80 to 90% of it is in gilts.The securities available are listed or unlisted, secured orunsecured, public issue or private placements.

Indicative levels of the instruments currently trading are as follows:

Instrument Maturity Tenure Yield Liquidity

CBLO / Repo Short Overnight 5.75 - 6.25 VeryHigh

CP/CD/T Bills Short 3 months CP 8.00 - 8.25 High3 months CD 8.00 - 8.2591D TB 6.90 - 7.10364D TB 7.30 - 7.50

Securitised Short/ 6 m – 15 m 9.50 - 10.75 LowDebt Medium

PSU/ Medium 3- 5 years 9.65 - 9.85 MediumCorporateBonds

Central/ State Low to 10 Y 7.85 - 8.00/ HighGovermnet High 8.15 - 8.25Securities

These are only indicative levels in August 2007 and are likelyto change depending upon the prevailing market conditions.

J. Investment Restrictions

As per the Trust Deed read with the Regulations, the followinginvestment restrictions apply in respect of the Scheme at the

time of making investments. However, all investments by theScheme will be made in accordance with the investmentobjective, investment strategy and investment patterndescribed previously.

1) The Scheme shall not invest more than 15% of its netassets in debt instruments (irrespective of residualmaturity) issued by a single issuer which are rated notbelow investment grade by a credit rating agencyauthorised to carry out such activity under the Act. Suchinvestment limit may be extended to 20% of the netassets of the Scheme with the prior approval of the Boardof Trustees and the Board of the AMC.

Provided that such limit shall not be applicable forinvestments in government securities and money marketinstruments.

Provided further that investments in debt securitiesissued by public bodies / institutions such as electricityboards, municipal corporations, state transportcorporations etc. guaranteed by the State or Centralgovernment would be included within the aforesaid limit.

Provided further that investment within such limit canbe made in securitised debt which are rated not belowinvestment grade by a credit rating agency registeredwith SEBI.

2) The Scheme shall not invest more than 10% of its netassets in unrated debt instruments (irrespective ofresidual maturity) issued by a single issuer and the totalinvestment in such instruments shall not exceed 25% ofthe net assets of the Scheme. All such investments shallbe made with the prior approval of the Board of Trusteesand the Board of the AMC.

3) Transfers of investments from one scheme to anotherscheme in the Fund shall be made only if,-

a) such transfers are done at the prevailing marketprice for quoted instruments on spot basis.

Explanation - “spot basis” shall have the samemeaning as specified by stock exchange for spottransactions.

b) the securities so transferred shall be in conformitywith the investment objective of the scheme towhich such transfer has been made.

4) The Scheme may invest in another scheme under thesame AMC or any other mutual fund without chargingany fees, provided that aggregate inter-schemeinvestment made by all schemes under the samemanagement or in schemes under the management ofany other asset management company shall not exceed5% of the net asset value of the Fund.

5) The Scheme shall buy and sell securities on the basis ofdeliveries and shall in all cases of purchases, take deliveryof relative securities and in all cases of sale, deliver thesecurities and shall in no case put itself in a positionwhereby it has to make short sale or carry forwardtransaction or engage in badla finance.

Provided that the Fund may enter into derivativestransactions including for the purpose of hedging andportfolio balancing in accordance with the guidelinesissued by SEBI in an attempt to protect the value of theportfolio

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6) The Fund shall, get the securities purchased ortransferred in the name of the Fund on account of theScheme, wherever investments are intended to be oflong term nature.

7) Pending deployment of funds of the Scheme in securitiesin terms of investment objectives of the Scheme, theScheme can invest the funds of the Scheme in short termdeposits of scheduled commercial banks.

8) The Scheme shall not make any investment in;

a) any unlisted security of an associate or group companyof the Sponsor; or

b) any security issued by way of private placement byan associate or group company of the Sponsor; or

c) the listed securities of group companies of theSponsor which is in excess of 25% of the net assets.

9) The Scheme shall not make any investment in any fund offunds scheme.

10) No term loans for any purpose may be advanced by theFund and the Fund shall not borrow except to meettemporary liquidity needs of the Scheme for the purposeof repurchase, redemption of Units or payment of interestor dividends to Unit Holders, provided that the Fundshall not borrow more than 20% of the net assets of theScheme and the duration of such a borrowing shall notexceed a period of six months.

11) Debentures, irrespective of any residual maturity period(above or below 1 year), shall attract the investmentrestrictions as applicable for debt instruments as specifiedunder Clause 1 and 1A of the Seventh Schedule to theRegulations or as may be specified by SEBI from time totime.

12) The Scheme will comply with any other Regulationapplicable to the investments of Mutual Funds from timeto time.

Apart from the investment restrictions prescribed underthe Regulations, internal risk parameters for limitingexposure to a particular scrip or sector may be prescribedfrom time to time to respond to the dynamic marketconditions and market opportunities.

The Trustee Company/AMC may alter these above statedlimitations from time to time, and also to the extent theRegulations change, so as to permit the Scheme to makeits investments in the full spectrum of permittedinvestments in order to achieve its investment objective.

K. Investment of Subscription Money

The Scheme may invest subscription money received fromthe investing public in money market instruments in additionto any other permissible form of investment, before finalisationof the allotment of Units. The AMC, on being satisfied of thereceipt of the minimum subscription amount, can commenceinvestment out of the funds received in accordance with theinvestment objective of the Scheme and as per existingRegulations. The income earned out of such investments wouldbe merged with the income of the Scheme on completion ofthe allotment of the Units.

L. Computation of Net Asset Value

The Net Asset Value of the Units of a Scheme will be computedby dividing the net assets of the Scheme by the number of

Units outstanding on the valuation date. The Fund shall valueits investments according to the valuation norms, as specifiedin Schedule VIII of the Regulations or such norms as may beprescribed by SEBI from time to time.

The broad valuation norms pertaining to the Scheme aredetailed below.

1. Traded Securities

(i) Traded securities shall be valued at the closing priceon The Principal Stock Exchange on the valuationday i.e. National Stock Exchange of India Ltd.(NSE).However, if the securities are not listed on NSE,the securities shall be valued at the price quoted onthe stock exchange where they are principally traded.

(ii) When on a particular valuation day, a security hasnot been traded on NSE but has been traded onanother stock exchange, the value at which it istraded on that stock exchange shall be used.

(iii) When a debt security (other than Governmentsecurities) is not traded on any stock exchange on aparticular valuation day, the value at which it wastraded on the principal stock exchange or any otherstock exchange, as the case may be, on the earliestprevious day may be used provided such date is notmore than fifteen days prior to valuation date.

(iv) When a debt security (other than GovernmentSecurities) is purchased by way of private placement,the value at which it was bought may be used for aperiod of fifteen days beginning from the date ofpurchase.

2. Thinly traded/Non-Traded Debt securities

Thinly Traded Debt Securities

A debt security (other than Government Securities) shallbe considered as a thinly traded if on the valuation date,there are no individual trades in that security inmarketable lots (currently Rs. 5 crore) on the PrincipalStock Exchange (NSE WDM) or any other stock exchange.A thinly traded debt security as defined above would bevalued as per the norms set for non-traded debt security.

Thinly Traded / Non-Traded Debt Securities (other thanGovernment Securities) will be valued “in good faith” bythe AMC on the basis of the valuation principles laiddown below:

a. Non-traded / Thinly Traded Debt securities Upto182 days to Maturity

Non-traded / Thinly Traded Debt securitiespurchased with residual maturity period upto 182days are to be valued at cost (including accruedinterest till the beginning of the day) plus thedifference between the redemption value (inclusiveof interest) and the cost spread uniformly over theremaining maturity period of the instrument. In caseof a debt security with maturity greater than 182days at the time of purchase, the last valuation priceplus accrued interest should be used instead ofpurchase cost. All other non-traded Non-Government debt instruments shall be valued usingthe method suggested below.

b. Non-traded / Thinly Traded Debt securities over182 days to Maturity

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Non-traded / Thinly Traded Debt Securities over182 days of maturity would be classified into“Investment Grade” and “Non-Investment Grade”securities based on their credit ratings. The noninvestment grade securities would further beclassified as “Performing” and “Non-Performing”assets.

In case the security is not rated by an external agencythen it would be rated internally by the fund managerunder the guidelines laid down by the valuationcommittee.

An asset would be classified as non performing whenthe interest/principal amount have not beenreceived or remained outstanding for one quarterfrom the day it has fallen due.

Valuation of Investment Grade and performingsecurity.

These will be valued on yield to maturity basis using theCRISIL Bond Valuer (CBV) application. The CBV in turnuses the risk free benchmark yield of governmentsecurities and the matrix of spreads (for different durationand rating) for marking up the benchmark yields, as sentby CRISIL to find out the resultant yield which would beused for valuation.

The yields as calculated above may be marked up/downfor illiquidity risk, promoter background, finance companyrisk and issuer class risk at the discretion of the fundmanager. However the mark up/mark down would berestricted as follows.

In case the security is rated by an external agency thediscretionary mark-up/mark down can not exceed-

+100 /- 50 basis points i.e. +1% / - 0.5% for securitieshaving a duration of up to 2 years.

+75 /- 25 basis points i.e. + 0.75% / - 0.25%for securitieshaving a duration over 2 years.

In case the security is internally rated the discretionarymark-up can not exceed

+ 50 basis points i.e.0.50% over and above the mandatorydiscount of 0.50% for securities having duration of up to2 years

+ 50 basis points i.e.0.50% over and above the mandatorydiscount of 0.25% for securities having duration of over 2years

Valuation of Non Investment Grade and performingsecurity

These will be valued at a discount of 25 % to the facevalue.

Valuation of Non Investment Grade and nonperforming securities

Valuation in respect Non Investment grade and nonperforming securities will be done based on theprovisioning norms prescribed by the Regulation.

c. Valuation of Securities with Put/Call Options

Securities with single call option

The securities with call option will be valued at the lower ofthe following:

Value as obtained by valuing the security to final maturity

Valuing the security to call option

Securities with multiple call options

The securities with multiple call option will be valued at thelower of the following:

Value as obtained by valuing the security to final maturity

Value the security to various call options

Securities with single put option

The securities with a single put option will be valued at thehighest of the following:

Value as obtained by valuing the security to final maturity

Valuing the security to put option

Securities with multiple put options

The securities with a single put option will be valued at thehighest of the following:

Value as obtained by valuing the security to final maturity

Valuing the security to various put option

Securities with both Put and Call option on the sameday

The securities with both put and call option on the same daywill be deemed to mature on the Put/Call day and will bevalued accordingly

Government Securities:

Government Securities are valued at the prices released by CRISIL,which is currently the only approved agency suggested byAssociation of Mutual Funds in India (AMFI).

Money Market Securities:

Investments in call money, bills purchased under rediscountingscheme and short term deposits with banks shall be valued at costplus accrual; other money market instruments are valued on thebasis of amortization i.e. cost plus accrued interest till the beginningof the day plus the difference between the redemption value andthe cost spread uniformly over the remaining maturity period ofthe instrument. Money Market instruments which are traded shallbe valued at the yield at which they are currently traded on theNational Stock Exchange Wholesale Debt Market (NSEWDM) or,in absence of such information, the traded price taken from RBINDS platform, if available and where these instruments are nottraded subsequently, shall be valued at the last traded price plusamortization on the basis of the last traded price.

Repo:

Where instruments have been bought on ‘repo’ basis, the instrumentmust be valued at the resale price after deduction of applicableinterest upto date of resale. Where an instrument has been sold ona ‘repo’ basis, adjustment must be made for the difference betweenthe repurchase price (after deduction of applicable interest uptodate of repurchase) and the value of the instrument. If therepurchase price exceeds the value, the depreciation must beprovided for and if the repurchase price is lower than the value,credit must be taken for the appreciation.

Derivative Products:

a. The traded derivatives shall be valued at market price inconfirmity with the stipulations of sub clauses (i) to (v) ofclause 1 of the Eighth Schedule to the SEBI Regulations, asamended from time to time.

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b. The valuation of untraded derivatives shall be done inaccordance with the valuation method for untradedinvestments prescribed in sub clauses (i) and (ii) of clause 2 ofthe Eighth Schedule to the SEBI Regulations, as amended fromtime to time.

The valuation guidelines as outlined above are as per the regulationsprevailing at present and are subject to change from time to time,in conformity with changes made by SEBI. All other guidelines notcovered above and as specified in the Mutual Fund Regulations, aswell as any additions/modifications thereto as may be specified bySEBI from time to time, shall be adhered to for the purpose ofvaluation.

M. Accrual of Expenses and Income

All expenses and incomes accrued upto the valuationdate shall be considered for computation of net assetvalue. For this purpose, while major expenses likemanagement fees and other periodic expenses should beaccrued on a day to day basis, other minor expenses andincome need not be so accrued, provided the non-accrualdoes not affect the NAV calculations by more than 1%.

Any changes in securities and in the number of units willbe recorded in the books not later than the first valuationdate following the date of transaction. If this is not possiblegiven the frequency of the NAV disclosure, the recordingmay be delayed upto a period of seven days following thedate of the transaction, provided that as a result of thenon-recording, the NAV calculations shall not be affectedby more than 1%.

In case the NAV of a scheme differs by more than 1% dueto non - recording of the transactions, the investors orscheme/s as the case may be, shall be paid the differencein amount as follows:-

(1) If the investors are allotted units at a price higherthan NAV or are given a price lower than NAV at thetime of sale of their units, they shall be paid thedifference in amount by the Scheme.

(2) If the investors are charged lower NAV at the timeof purchase of their units or are given higher NAV atthe time of sale of their units, the AMC shall pay thedifference in amount to the Scheme. The AMC mayrecover the difference from the investors. Suchrecovery may also be done by debiting/ redeemingthe unit balances, if any, of such investors with thefund.

N. Pricing of Units

The units will be sold / redeemed at the Applicable NAV,subject to entry / exit load/ CDSC.

As per the Regulations, the AMC will ensure that theRedemption Price is not lower than 93% of the NAV andthe Purchase Price is not higher than 107% of the NAV,provided that the difference between the RedemptionPrice and Purchase Price of the Unit shall not exceed thepermissible limit of 7% of the Purchase Price asprescribed under the Regulations.

The valuation guidelines outlined above are within theparameters of the Regulations and are subject to changes fromtime to time by the AMC and / or the Trustee. All such changeswill be in conformity with the Regulations.

O. Calculation of NAV

NAV is the actual value of a Unit on any Business Day and shallbe calculated by either of the following methods shown below:

Market or Fair Value of the Scheme’sInvestments (+) Current Assets (-)Current Liabilities and Provisions

NAV (Rs.) = ----------------------------------------------------------------Number of Units Outstanding at the endof the day

Unit Capital + Reserves and SurplusNAV (Rs.) = ----------------------------------------------------------------

Number of Units Outstanding at the endof the day

The NAV will be calculated for up to four decimal places forthe Scheme.

The NAV will be calculated on all days of the year. The valuationof the Scheme’s assets and calculation of the Scheme’s NAVshall be subject to audit on an annual basis and such regulationsas may be prescribed by SEBI from time to time.

The first NAV will be calculated and announced within a periodof 30 days after the close of the NFO Period. Subsequently,the NAV shall be calculated and announced on all Business Days.

P. Accounting Policies and Standards

Significant Accounting Policies

In accordance with Regulation 50 read with the Ninth Scheduleto the SEBI Regulations, the Scheme shall follow the accountingpolicies and standards stated below:

All investments will be marked to market and will becarried in the balance sheet at market value. However,since the unrealised gain arising out of appreciation oninvestments cannot be distributed, provision will be madefor exclusion of this item when arriving at distributableincome.

In respect of all interest-bearing investments, incomewill be accrued on a day to day basis as it is earned.Therefore when such investments are purchased,interest paid for the period from the last interest duedate upto the date of purchase shall not be treated as acost of purchase but shall be debited to InterestRecoverable Account. Similarly, interest received at thetime of sale for the period from the last interest due dateupto the date of sale shall not be treated as an addition tosale value but shall be credited to Interest RecoverableAccount.

In determining the holding cost of investments and thegains or loss on sale of investments, the “average cost”method shall be followed.

Transactions for purchase or sale of investments will berecognised as of the trade date and not as of thesettlement date, so that the effect of all Investmentstraded during a financial year are recorded and reflectedin the financial statements for that year. When investmenttransactions take place outside the stock market, forexample, acquisitions through private placement orpurchases or sales through private treaty, the transactionwill be recorded, in the event of a purchase, as of thedate on which the Scheme obtains an enforceable obligationto pay the price or, in the event of a sale, when the

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Scheme obtains an enforceable right to collect theproceeds of sale or an enforceable obligation to deliverthe instruments sold.

An ‘asset’ shall be classified as non performing, if theinterest and / or principal amount have not been receivedor remained outstanding for one quarter from the daysuch income / installment has fallen due. After the expiryof the 1st quarter from the date the income has fallendue, there will be no further interest accrual on theasset. In short, from the beginning of the 2nd quarterthere will be no further accrual on income. Whereincome/principal receivable on investments has accruedbut has not been received for the period specified in theguidelines issued by SEBI, provision shall be made bydebiting to the revenue account, the income so accruedin the manner specified by the guidelines issued by SEBI.

When Units are sold, the difference between the Saleprice and the face value of the Unit, if positive shall becredited to reserves and if negative, will be debited toreserves, the face value being credited to Capital Account.Similarly, when Units are Redeemed, the differencebetween the Purchase Price and face value of the Unit, ifpositive, shall be debited to reserves, and, if negative,shall be credited to reserves, the face value being debitedto the Capital Account.

When Units are sold, an appropriate part of the Saleproceeds shall be credited to an Equalisation Accountand when Units are redeemed, an appropriate amountwould be debited to Equalisation Account. The net balanceon this account shall be credited or debited to the RevenueAccount. The balance on the Equalisation Account debitedor credited to the Revenue Account shall not decrease orincrease the net income of the Scheme but is only anadjustment to the distributable surplus. It shall thereforebe reflected in the Revenue Account only after the netincome of the Scheme is determined.

The cost of investments acquired or purchased wouldinclude, brokerage, stamp charges and any chargecustomarily included in the broker’s bought note. Inrespect of privately placed debt instruments, any front-end discount offered shall be reduced from the cost ofthe investment.

The accounting policies and standards outlined above are consistentwith the current Regulations and are subject to changes made fromtime to time by the AMC and/or Trustee. However, such changesmust be in conformity with the Regulations.

VI. Load and Fees and Expenses

A. Load Structure of the Scheme

During the NFO and Ongoing Offer: The following Entry andExit Loads will be applicable to an investor:

Entry Load: Nil

Exit Load: Nil

If the AMC introduces an Entry Load, a switch-in ortransfer under STP may also attract the applicable EntryLoad like any Purchase.

If the AMC introduces an Exit Load, a switch-out or awithdrawal under SWP or transfer under STP may alsoattract the applicable Exit Load like any Redemption.

No Entry / Exit Loads / CDSC will be chargeable in caseof switches made between different options of the Scheme.

If the AMC introduces an entry load then each purchasetransaction made into the Scheme/relevant Plan/Optionof the Scheme will be tracked separately.

All Loads / CDSC are intended to enable the AMC to recoverexpenses incurred for promotion or distribution and sales ofthe Units of the Scheme. All Loads including CDSC will beretained in the Scheme in a separate account and will beutilised to meet the distribution and marketing expenses.Any surplus amounts in this account may be credited to theScheme as per SEBI Regulations.

The Trustee retains the right to change / impose an Entry /Exit Load / CDSC, subject to the provisions below.

1. Any such changes / impositions would be chargeable onlyfor prospective Purchases and Redemptions from suchprospective Purchases (applying First in First Out basis).

2. The AMC shall arrange to display a notice in all the ISCsbefore changing the prevalent Load structure. Anaddendum detailing the changes in Load structure will beattached to Offer Documents and Application Forms.Unit Holders / Prospective investors will be informed ofchanged / prevailing Load structures through variousmeans of communication such as public notice and / ordisplay at ISCs / Distibutors’ offices, on account statements,acknowledgements, investor newsletters, etc.

3. The Redemption Price will not be lower than 93% of theApplicable NAV and the Purchase Price will not be higherthan 107% of the Applicable NAV, provided that thedifference between the Redemption Price and thePurchase Price at any point in time shall not exceed thepermitted limit as prescribed by SEBI from time to time,which is currently 7% calculated on the Purchase Price.

B. Fees and Expenses of the Scheme

As per the Regulations, the following fees and expenses canbe charged to the Scheme:

1. New Fund Offer Expenses

As per SEBI circular SEBI/IMD/CIR No. /6 057/06 datedApril, 2006, open ended schemes are not permitted tocharge New Fund Offer Expenses to the scheme. In thisScheme as no Entry Load is being charged by the Scheme,such expenses shall be borne by the AMC. Thus for everyRs. 100 contributed by the investor the entire Rs. 100will be available to the Scheme for investment.

2. Investment Management Fee

The AMC is entitled to an investment management fee atthe rate of 1.25% per annum of the daily average netassets of the Scheme(s) outstanding in each financial yearfor the net assets up to Rs. 100 Crores and at the rate of1.00% per annum of the daily average net assets of theScheme(s) outstanding in each financial year for the netassets in excess of Rs. 100 Crores.

3. Recurring Expenses

The ongoing fees and expenses of operating the Schemeon an annual basis, and which shall be charged to theScheme, are estimated to be as follows (each as apercentage per annum of the daily average net assets):

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Nature of Retail Institutional SuperExpense Plan Plan Institutional

(%) (%) Plan (%)

Investment 1.00 1.00 1.00Managementand advisoryFees

Custodian Fee 0.005 0.005 0.005

Trustee Fee 0.001 0.001 0.001and expenses

Registrars &Transfer agent fee 0.07 0.07 0.07

Audit Fee 0.001 0.001 0.001

Marketing andSelling expensesincluding agents’commission 0.60 0.55 0.50

Costs related toinvestorcommunications/providing AccountStatements anddividend/redem-ption Cheques andwarrants 0.168 0.118 0.068

Other costs*including costs ofstatutoryadvertisements 0.005 0.005 0.005

TOTALRECURRINGEXPENSES 1.85 1.75 1.65

* Other expenses: Any other expenses which are directlyattributable to the Scheme, may be charged within the overalllimits as specified in the Regulations except those expenseswhich are specifically prohibited.

The purpose of the above table is to assist the investor inunderstanding the various costs and expenses that the investorin the Scheme will bear directly or indirectly.

The above estimates for recurring expenses for the Schemeare based on the corpus size of Rs. 100 Crores, and maychange to the extent assets are lower or higher.

These estimates have been made in good faith as per theinformation available to the AMC at the time of preparation ofthe offer document, and the AMC reserves the right to changethe estimates, both inter se or in total, subject to prevailingRegulations.

The AMC may incur actual expenses which may be more orless than those estimated above under any head and / or intotal. The AMC will charge the Scheme such actual expensesincurred, subject to the statutory limit prescribed in Regulation52 of the Regulations, as given below. Any excess over theselimits will be borne by the AMC.

Maximum Recurring Expenses:

Average daily net assetsMaximum, as a % of

average daily net assets

First 100 Crores 2.25%

Next 300 Crores 2.00%

Next 300 Crores 1.75%

Balance assets 1.50%

Maximum Management Fee to be charged by the AMC:

Average daily net assetsMaximum, as a % of

average daily net assets

First 100 Crores 1.25%

Balance assets 1.00%

However, an additional Management Fee of up to 1% may becharged in case of a No-Load scheme.

C. New Fund Offer Expenses of Existing / Past Schemes

AIG India Equity Fund - The scheme was launched on May 02,2007. Actual amount mobilized - Rs. 1103.63 Crores, ActualInitial Issue Expenses - 3.2% of the amount mobilized. Asmentioned in the Offer Document of the scheme, actual initialissue expenses were debited to the scheme to the extent ofentry load collected and the balance in excess of that wasborne by the AMC.

D. Condensed Financial Information

Historical Per Unit Statistics AIG India Equity Fund

Regular InstitutionalPlan Plan

Date of Launch May 03, 2007

Date of Allotment June 22, 2007

Beginning of the year /Allotment Date June 22, 2007

End of year / period August 28, 2007

NAV at the beginning of the year/Date of Allotment

Growth Option 10.000 10.000

Dividend Option 10.000 10.000

Net Income per unit 0.02

Dividend per unit - -

Transfer to Reserves (if any) - -

NAV at the end of the period

Growth Option 10.064 10.072

Dividend Option 10.064 10.072

Annualized Returns(Since Date of Allotment) $ 0.64% 0.72%

Benchmark Absolute returns(BSE 100 Index) 2.17% 2.17%

Net assets at the end ofperiod (Rs. Crores) 976.90 133.26

Ratio of Recurring Expensesto Net Assets# 2.06% 1.59%

# The ratio of expenses to Daily Average Net Assets isannualized.

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Notes:

1) Returns

- Returns calculated since the date of allotement of units onthe face value of units i.e. Rs 10.000

- NAVs of of the Growth Options of the respective plans of theScheme have been used to compute the Returns.

- $ Returns are in absolute terms and are not annualised orcompounded since the Scheme has not completed one year.

2) Net Income includes income accruals, profit & loss on saleof investments less expenses but excludes appreciation/depreciation.

E. Borrowing by the Mutual Fund

During the period ending August 28, 2007, there has been noborrowings by the schemes of the Fund.

VII. Units and the Offer

A. Units on Offer during the New Fund Offer (NFO)

1. Minimum Subscription Amount

The Fund seeks to collect a minimum subscription amount ofRs. One Crore under the Scheme during the NFO Period. Inthe event this amount is not raised during the NFO Period,the amount collected under the Scheme will be refunded tothe applicants as mentioned in paragraph “Processing ofApplication Forms during the NFO Period - Refunds”.

There is no upper limit on the total amount to be collectedunder the Scheme during the NFO Period.

2. New Fund Offer Price

The Units can be purchased at Rs. 10/- per Unit, during theNFO Period.

3. NFO Period

The NFO Period for the Scheme will be from thecommencement of banking hours on September 18, 2007 tothe close of banking hours on September 20, 2007.

4. Extension of the NFO Period

The Trustee reserves the right to extend the closing date ofthe NFO Period, subject to the condition that the initial offershall not be kept open for more than 30 days. Any suchextension shall be announced by way of a notice in one nationalnewspaper.

5. Expenses of New Fund Offer

In respect of the Scheme, Initial Issue Expenses shall be borneby the AMC.

B. Units on Offer - General Information

1. Minimum Amount for applying in the Scheme

For all first time purchases, the minimum amount proposedunder each of the plans is as follows:

AIG India Treasury Plus Fund – Retail Plan: This Planis for investors seeking to make a first time purchase ofRs. 10,000/- and above.

AIG India Treasury Plus Fund – Institutional Plan:This Plan is for institutional investors seeking to make afirst time purchase of Rs. 1 crore and above.

AIG India Treasury Plus Fund – Super InstitutionalPlan: This Plan is for institutional investors seeking tomake a first time purchase of Rs. 10 crore and above.

Additional application for purchase of Units under theScheme must be as follows:

Retail: Rs. 1000/- and in multiples of Re 1 thereafter

Institutional: Rs 1 Lac and in multiples of Re 1 thereafter

Super Institutional: Rs 10 Lac and in multiples of Re 1thereafter

The minimum amount in case of inter/ intra schemeswitches shall be the minimum amount required in therespective transferee scheme/plan.

2. Plans available under the Scheme

The Scheme offers three plans –

(a) Retail Plan;

(b) Institutional Plan; and

(c) Super Institutional Plan.

Though the portfolio of all the aforesaid plans and the optionsthereunder will be same, the annual recurring expenseschargeable to the investors in the plans will be different. Dueto difference in the annual recurring expenses chargeable tothe plans and the rate of dividend that might be declaredunder the options of the plans, the NAVs of each of optionsunder the plan will be different.

3. Options available under the Scheme

The Scheme offers three options - Growth option, Bonusoption and Dividend option. The Dividend option offersDividend Payout and Dividend Reinvestment facilities. TheUnits, for the purpose of reinvestment, will be created andcredited to the Unitholder’s account at the first ex-dividendNAV.

Growth option: under this option no dividend will be declared.

Bonus option: under this option the Fund may issue bonusunits out of the accumulated reserves and surplus includingthe surplus by realised profit, dividend and interest, net oflosses, expenses and taxes, if any, to unit holders, if suchsurplus is available and adequate for distribution in the opinionof Trustees.

Eligibility and Treatment of Bonus Units: Bonus units, as andwhen issued, will be in proportion to the holdings of theunitholder under the concerned plan as on the record date, tobe fixed for the purpose of Bonus declaration.

The AMC may accordingly make appropriations andapplications of the sum decided by it to be so capitalised byallotment and issue of fully paid-up units as bonus units, andgenerally do all such acts and things required to give effectthereto.

The Bonus Units so allotted and issued as aforesaid will asregards rights and entitlements rank pari passu with the unitsin existence on the record date in respect of which they areallotted and issued.

Interest created / options exercised by a member on the unitsunder a folio by way of nomination, if any, will automaticallyapply to the bonus units.

Please note that pursuant to allotment of Bonus Units, theNAV of the scheme would fall in proportion to the bonus unitsallotted. As a result, the total value of units held by theunitholder would remain the same.

For eg. 1) Value of investors unitholding of 100 units prior-toissuance of bonus units at NAV of Rs. 20 per unit = Rs. 2,000.

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If the Scheme declares a bonus of say 1:1 (i.e. one bonus unitfor every one unit held in the option on the record date), thevalue of the investors unitholding post issuance of bonus units= NAV of Rs. 10 * 200 units = Rs. 2,000

2) Value of investors unitholding of 100 units prior-to issuanceof bonus units at NAV of Rs. 20 per unit = Rs. 2,000. If theScheme declares a bonus of say 4:1 (i.e. one bonus unit forevery four units held in the option on the record date), thevalue of the investors unitholding post issuance of bonus units= NAV of Rs. 16 * 125 units = Rs. 2,000.

(The statistics given above in the examples are only forunderstanding the logic of issuance of bonus units and shouldnot be considered as indicative of any bonus likely to be issuedunder the Plan)

“Unit” means and includes, where the context so requires, aunit issued as fully paid-up bonus unit by capitalising a part ofthe amount standing to the credit of the account of the reservesformed or otherwise in respect of this scheme.

Allotment & Despatch Of Account Statement: The Bonus unitswill be added to the existing folio. An Account statementreflecting the accretion to the unitholders through issuance ofbonus units will be despatched to the unitholders within tenworking days or within SEBI prescribed limits from the dateof allotment of the bonus units.

Dividend option: under this option, a dividend may be declaredby the Trustee, at its discretion, from time to time (subject tothe availability of distributable surplus as calculated inaccordance with the Regulations).

If the investor does not clearly specify the choice of option atthe time of investing, it will be treated as a Growth Option.If the investor does not clearly specify the choice of Payout orReinvestment options within the Dividend option, it will betreated as a Re-investment Option.

4. Dividend Frequency (all Plans)Dividend Payout Option

Monthly - 25th of every monthQuarterly - 25th of every calendar quarter end

Dividend Reinvestment OptionDailyWeekly - Every MondayMonthly - 25th of every monthQuarterly - 25th of every calendar quarter end

In case of Monthly and Quarterly dividend options, if any of theday(s) mentioned is a non Business Day, the dividend will bedeclared on the next Business Day. The dividend will bedeclared subject to availability and adequacy of distributablesurplus.

If the investor does not clearly indicate the dividend frequency,it will be treated as monthly frequency in case of dividendpayout as well as reinvestment facility.

5. Cut-off time and Applicable NAVFor purpose of all purchase, redemption and switchtransactions, the Applicable NAV is as follows:For valid applications accepted:Upto 3:00 PM (cut-off time) on a Business Day, the NAV ofsuch Business Day.After 3:00 PM (cut-off time) on Business Day, the NAV offollowing Business Day.

The above will be applicable only for cheques / drafts / paymentinstruments payable locally in the city in which ISC is located.For Switches:Valid applications for 'switch-out' shall be treated as applicationsfor Redemption and valid applications for 'switch-in' shall betreated as applications for Purchase and the provisions of theCut-off time and the Applicable NAV mentioned in the OfferDocument as applicable to Purchase and Redemption shall beapplied respectively to the 'switch-in' and 'switch-out'applications.

6. Minimum Number of investors and maximum holdingby an investor

The Scheme and individual Plan(s) with a separate portfolio, ifany, under the Scheme shall have a minimum of 20 investorsand no single investor shall account for more than 25% of thecorpus of the Scheme/Plan(s). However, if such a situationarises during the NFO of the Scheme, in accordance with theSEBI Regulations, the Scheme will endeavour to ensure thatwithin a three months time period or the end of the succeedingcalendar quarter from the close of the NFO of the Scheme,whichever is earlier, the Scheme complies with these twoconditions failing which the provisions of Regulation 39 (2) (c)of the Regulations would become applicable automaticallywithout any reference from SEBI and accordingly the Scheme/ Plan(s) shall be wound up and the units would be redeemedat applicable NAV. The two conditions mentioned above shallalso be complied within each subsequent calendar quarterthereafter, on an average basis, as specified by SEBI.SEBI hasprovided further clarifications with respect to determiningthe breach of the 25% limit by an investor - The average netassets of the scheme would be calculated daily and any breachof the 25% holding limit by an investor would be determined.At the end of the quarter, the average of daily holding by eachsuch investor will be computed to determine whether thatinvestor has breached the 25 % limit over the quarter. Ifthere is a breach of limit by any investor over the quarter, arebalancing period of one month would be allowed andthereafter the investor who is in breach of the rule shall begiven 15 days notice to redeem his exposure over the 25%limit. Failure on the part of the said investor to redeem hisexposure over the 25% limit within the aforesaid 15 dayswould lead to automatic redemption by the Fund on theapplicable Net Asset Value on the 15th day of the notice period.The Scheme shall adhere to the requirements prescribed bySEBI from time to time in this regard.

In case Scheme fails to assemble minimum 20 investors at thetime of allotment, the Scheme shall be wound up, by followingthe guidelines prescribed by SEBI and the investor's applicationmoney would be refunded. Further, at the time of allotment,no single investor should account for more than 25% of thecorpus of such Scheme (i.e. at the portfolio level), accordinglyFund is constrained to reject the application by a singleunitholder having exposure of more than 25% at the time ofallotment, hence such unitholder could be allotted limitedunits to such extent.

C. Purchase of Units

1. Who can invest

Prospective investors are advised to satisfy themselves thatthey are not prohibited by any law governing them and anyIndian law from investing in the Scheme and are authorised to

32

purchase units of mutual funds as per their respectiveconstitutions, charter documents, corporate / otherauthorizations and relevant statutory provisions. The followingis an indicative list of persons who are generally eligible andmay apply for subscription to the Units of the Scheme:

Resident Indian adult individuals, either singly or jointly(not exceeding three);

Minor through parent / lawful guardian; (please see thenote below);

Companies, bodies corporate, public sector undertakings,association of persons or bodies of individuals andsocieties registered under the Societies Registration Act,1860;

Religious and Charitable Trusts, Wakfs or endowmentsof private trusts (subject to receipt of necessary approvalsas required) and Private Trusts authorised to invest inmutual fund schemes under their trust deeds;

Partnership Firms constituted under the Partnership Act,1932;

A Hindu Undivided Family (HUF) through its Karta;

Banks (including Co-operative Banks and Regional RuralBanks) and Financial Institutions;

Non-Resident Indians (NRIs) / Persons of Indian Origin(PIO) on full repatriation basis or on non-repatriationbasis;

Foreign Institutional Investors (FIIs) registered with SEBIon full repatriation basis;

Army, Air Force, Navy and other para-military funds andeligible institutions;

Scientific and Industrial Research Organisations;

Provident / Pension / Gratuity and such other Funds asand when permitted to invest;

International Multilateral Agencies approved by theGovernment of India / RBI;

The Trustee, AMC or Sponsor or their associates(if eligible and permitted under prevailing laws); and

A mutual fund through its schemes, including fund offunds schemes.

Note: A minor Unit Holder, on attaining majority, may informthe Registrar about attaining majority and provide his/herspecimen signature duly authenticated by his/her banker aswell as details of his/her bank account and PAN (if required) toenable the Registrar to update their records and allow him/her to operate the Account in his/her own right.

Other schemes of the AIG Global Investment Group MutualFund may, subject to the conditions and limits prescribed inthe Regulations and/or by the Trustee, AMC or Sponsor,subscribe to Units under the Scheme.

The Fund reserves the right to include / exclude new / existingcategories of investors to invest in the Scheme from time totime subject to the Regulations and other prevailing statutoryregulations, if any.

Subject to the Regulations, any application for Units may beaccepted or rejected in the sole and absolute discretion of theTrustee. For example, the Trustee may reject any applicationfor the Purchase of Units if the application is invalid orincomplete or if, in its opinion, increasing the size of any or all

of the Scheme’s Unit capital is not in the general interest ofthe Unit Holders, or if the Trustee for any other reason doesnot believe that it would be in the best interest of the Schemeor its Unit Holders to accept such an application.

The AMC / Trustee may need to obtain from the investor,verification of identity or such other details relating to asubscription for Units as may be required under any applicablelaw, which may result in delay in processing the application.

2. Who cannot invest

IT SHOULD BE NOTED THAT THE FOLLOWINGENTITIES CANNOT INVEST IN THE SCHEME:

Any individual who is a Foreign National or any otherentity that is not an Indian resident (other than PIO andOverseas Corporate Bodies) under the Foreign ExchangeManagement Act, 1999, except where registered withSEBI as a FII or FII sub account.

Non-Resident Indians residing in the United States ofAmerica and Canada.

The Fund reserves the right to include / exclude new / existingcategories of investors to invest in the Scheme from time totime, subject to SEBI Regulations and other prevailing statutoryregulations, if any.

Subject to the Regulations, any application for Units may beaccepted or rejected in the sole and absolute discretion of theTrustee.

The AMC / Trustee may need to obtain from the investorverification of identity or such other details relating to asubscription for Units as may be required under any applicablelaw, which may result in delay in processing the application.

3. Purchase PriceThe Purchase Price of the Units is the price at which aninvestor can Purchase Units of the Scheme. It will be calculatedas described below:Purchase Price = Applicable NAV x (1 + Entry Load)Purchase Price will be calculated for up to four decimal placesfor the SchemeFor example, if the Applicable NAV of the Scheme is Rs.10,and it has a 2% Entry Load, the Purchase Price will becalculated as follows:Purchase Price = 10 x (1 + 2%) i.e. 10 x 1.0200 =10.200If the Scheme has no Entry Load, the Purchase Price will beequal to the Applicable NAV.For details on Load structure for the Scheme, please referChapter - LOAD AND FEES AND EXPENSES.

4. How to Apply

Application Forms / Transaction Slips for the Purchase of Unitsof the Scheme will be available at the ISCs / distributors.Applications filled up and duly signed by all joint investorsshould be submitted along with the cheque /draft / otherpayment instrument to a Designated Collection Centre. Pleaserefer to the paragraph "How to pay" below for details ofpayment.

Applications should be made in adherence to the minimumamount requirements as mentioned in paragraph "MinimumAmount for applying in the Scheme".

It is mandatory for every applicant to provide the name of thebank, branch, address, account type and number as per SEBI

33

requirements and any Application Form without these detailswill be treated as incomplete. Such incomplete applicationswill be rejected. The Registrar / AMC may ask the investor toprovide a blank cancelled cheque or its photocopy for thepurpose of verifying the bank account number.

The applicant or in the case of application in joint names, eachof the applicants, should mention his / her permanent accountnumber (PAN) allotted under the Income Tax Act, 1961 andalso submit an attested photocopy of the PAN card(s) or acommunication from the Income Tax authority indicatingallotment of PAN ("PAN Communication") along with theapplication for the purpose of verification of the number.

Investors who do not have PAN are required to provide a copyof the evidence of having applied for PAN (acknowledged copyof Form 49A) until PAN is received. For amount of Rs. 50,000/-and above, a completed Form 60/Form 61 alongwith addressproof is also required to be submitted alongwith the application.

An application will be treated as incomplete and rejected if:

the PAN is not mentioned;

the PAN is mentioned but not supported by an attestedphotocopy of the PAN card or PAN Communication; or

in cases where investors donot have the PAN, a copy ofthe evidence of having applied for PAN (acknowledgedcopy of Form 49A) is not provided. For amount of Rs.50,000/- and above, a completed Form 60/Form 61alongwith address proof is also not provided.

Applications incomplete in any respect will be liable tobe rejected.

In order to protect investors from frauds, it is advised that theApplication Form number / folio number and name of the firstinvestor should be written overleaf the cheque / draft, beforethey are handed over to any courier / messenger / distributor/ ISC.

In order to protect investors from fraudulentencashment of cheques, the Regulations require thatcheques for Redemption of Units specify the name of theUnit Holder and the bank name and account numberwhere payments are to be credited. Hence, all applicantsfor Purchase of Units must provide a bank name, bankaccount number, branch address, and account type inthe Application Form.

5. How to pay

All cheques / drafts must be drawn favouring "AIG IndiaTreasuryPlus Fund". They should be crossed "Account Payee only". Aseparate cheque or bank draft must accompany eachapplication. Each application should be accompanied with onlya single cheque and not multiple cheques.

Payment can be made by any of the following modes:

Cheque;

Draft (i.e. demand draft or bank draft); or

a payment instrument (such as pay order, bankers' chequeetc.).

payment may be made through EFT / SEFT / RTGS / WireTransfer or in any manner acceptable to the AMC, and isevidenced by receipt of credit in the bank account of theFund

The cheque should be payable at a bank's branch, which issituated at and is a member of the Banker's Clearing House /

Zone in the city where the application is submitted to aDesignated Collection Centre.

An investor may invest through a distributor with whom theAMC has made an arrangement.

The following modes of payment are not valid, and applicationsaccompanied by such payments are liable to be rejected.

Outstation cheques or outstation demand drafts;Cash, money orders or postal orders;Post dated cheques; andMultiple cheques with a single application.

If the applicant is resident of a city, the banking clearing circle ofwhich is different from that of any Investor Service Centre asdesignated by the AMC from time to time, the AMC shall bear thebank charges (to the extent of the limit as prescribed in the SBI DDcharge list) for demand draft(s) borne by the AMC. The AMC shallnot refund any demand draft charges.

Applications accompanied by cheques / drafts not fulfillingthe above criteria are liable to be rejected.

Returned cheques will not be re-presented for collection andthe accompanying application will be rejected.

Note: The Trustee, at its discretion at a later date, may choose toalter or add other modes of payment.

Payment by NRIs, FIIs/PIOs

In terms of Schedule 5 of Notification No. FEMA 20/2000 datedMay, 2000, the RBI has granted general permission to NRIs topurchase, on a repatriation basis, units of domestic mutual funds.Further, the general permission is also granted to NRIs to sell theUnits to the mutual funds for repurchase or for the payment ofmaturity proceeds provided that the Units have been purchased inaccordance with the conditions set out in the aforesaid notification.

For the purpose of this section, the term "mutual funds" is asreferred to in Clause (23 D) of Section 10 of the Income-Tax Act 1961.

However, NRI investors, if they so desire, also have the option tomake their investment on a non-repatriable basis.

Mode of Payment on Repatriation basis:

In the case of NRIs and Persons of Indian Origin residingabroad, payment may be made by way of Indian Rupee draftspurchased abroad or by way of cheques drawn on Non-Resident (External) (NRE) Accounts payable at par at Mumbai.Payments can also be made by means of Indian Rupee draftspayable at Mumbai and purchased out of funds held in NREAccounts/FCNR Accounts.

In case Indian Rupee drafts are purchased abroad or fromFCNR/ NRE accounts, an account debit certificate from thebank issuing the draft confirming the debit shall also beenclosed. NRIs shall also be required to furnish such otherdocuments as may be necessary and as desired by the Fund inconnection with the investment in the Scheme.

Mode of Payment on Non-Repatriation basis:

In the case of NRIs/Persons of Indian Origin seeking to applyfor Units on a non-repatriation basis, payments may be madeby cheques/demand drafts drawn out of Non-Resident Ordinary(NRO) accounts/Non-Resident Special Rupee (NRSR) accountsand Non Resident Non-Repatriable (NRNR) accounts payableat the city where the Application Form is accepted. Payments,whether on a Repatriation or a Non Repatriation basis shall bemade by cheques/demand drafts crossed "Account Payee Only"and made out in favour of "AIG India Treasury Plus Fund".

34

FII Investors

In terms of Schedule 5 of Notification No. FEMA 20/2000 datedMay, 2000, the RBI has granted general permission to registeredFIIs to purchase, on a repatriation basis, units of domestic mutualfunds subject to the conditions set out in the aforesaid notification.Further, general permission has also been granted to FIIs to sellthe units to the mutual fund for repurchase or for the payment ofmaturity proceeds, provided that the units have been purchased inaccordance with the conditions set out in the aforesaid notification.

For the purpose of this section, the term "mutual funds" is asreferred to in Clause (23 D) of Section 10 of the Income Tax Act1961.

Mode of Payment on Repatriation basis:

FIIs may pay their subscription amounts either by way of inwardremittance through normal banking channels or out of fundsheld in a Foreign Currency Account or a Non-resident RupeeAccount maintained by the FII with a designated branch of anauthorized dealer with the approval of the RBI subject to theterms and conditions set out in the aforesaid notification.

In case Indian rupee drafts are purchased abroad or fromForeign Currency Accounts or Non-resident Rupee Accounts,an account debit certificate from the bank issuing the draftconfirming the debit shall also be enclosed. Payments shall bemade by cheques/demand drafts crossed "Account Payee Only"and made out in favour of "AIG India Treasury Plus Fund".

6. Application under Power of Attorney

In case of an application under a Power of Attorney or by alimited company, body corporate, registered society, trust orpartnership etc., the relevant Power of Attorney duly notarizedor the relevant resolution or authority to make the applicationas the case may be or a duly certified copy thereof, along withthe memorandum and articles of association/bye-laws mustbe lodged along with the Application Form at an InvestorService Centre or at the Collection Centres. Further, theAMC may require that a certified copy of the Trust Deed orthe Partnership Deed be lodged at the Investor Service Centreor at the Collection Centre.

7. Application by a non-Individual Investor

In case of an application by a company, body corporate, society,mutual fund, trust or any other organisation not being anindividual, a duly certified copy of the relevant resolution or adocument providing evidence of the authority to theorganisation to invest in units of mutual fund(s), along with theupdated Specimen Signature list of Authorised Signatoriesmust be lodged within 7 Business Days along with theApplication Form / Transaction Slip at a Designated CollectionCentre. Further, the AMC may require that a copy of theincorporation deeds / constitutive documents (e.g.Memorandum and Articles of Association) also be submittedto the Registrar.

8. Mode of Holding

An application can be made by up to a maximum of threeapplicants. Applicants must specify the 'mode of holding' in theApplication Form.

If an Account has more than one holder, only the first-namedholder (as determined by the records of the Registrar) willreceive all notices and correspondence with respect to theAccount. Such Unit Holder will receive the proceeds of anyredemption requests or dividends or other distributions. In

addition, such holder will have the voting rights, as permitted,associated with such Units.

In case of mode of operations specified as 'jointly', all requestshave to be signed by all the joint holders. However, in the caseof holdings specified as 'any one or survivor', any one of thejoint holders may sign such requests.

In case the mode of holding is not ticked, then it will be takenas Joint for individual investors, proprietary firms or Minors.For others it will be marked as N.A. irrespective of whateveris ticked on the application.

The names of holders cannot be changed and names cannot beadded or deleted as joint holders after the submission of anapplication.

Investors should carefully study the paragraphs "Transmissionof Units" and "Nomination Facility" below "Facilities Offeredto Investors under the Scheme" before ticking the relevantbox pertaining to the mode of holding in the Application Form.

9. Processing of Application Forms during the NFO Period

(a) Allotment

Subject to the receipt of the specified minimumsubscription amount, full allotment of Units applied forwill be made within 30 days from the date of closure ofthe NFO Period for all valid applications received duringthe NFO Period.

All allotments will be provisional, subject to realizationof payment instrument and subject to the AMC havingbeen reasonably satisfied that the Mutual Fund hasreceived clear funds.

(b) Account Statements

An account statement stating the number of Unitspurchased will be sent by ordinary post and/or electronicmail to each Unit Holder not later than 30 days from theclose of the New Fund Offer Period. The AccountStatement shall be non-transferable. Despatch of accountstatements to NRIs/FIIs will be subject to RBI approval, ifrequired.

Any discrepancy in the Account Statement / UnitCertificate should be brought to the notice of the Fund/AMC immediately. Contents of the Account Statement /Unit Certificate will be deemed to be correct if no erroris reported within 30 days from the date of AccountStatement / Unit Certificate.

(c) Refunds

If the Scheme fails to collect the minimum subscriptionamount of Rs. 1 crore, the Fund shall be liable to refundthe money to the applicants.

In addition to the above, the refund of subscription moneyto the applicants whose applications are treated as invalidor rejected for any other reason whatsoever willcommence immediately after the allotment process iscompleted. Refunds will be completed within 6 weeks ofthe closure of the NFO Period. If the Fund refunds theamount after such 6 week period, the AMC shall be liableto pay interest at 15% per annum. Refund orders will bemarked "A/c Payee only" and drawn in the name of theapplicant (in the case of a sole applicant) and in the nameof the first applicant in all other cases. All refund chequeswill be mailed by registered post or as per the applicableRegulations.

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10. Processing of applications during the Ongoing Offer Period

(a) Allotment

New investors may apply for Units by filling up anApplication Form. Existing investors can apply for Unitsusing a Transaction Slip or a common transaction form.All valid and complete applications will be allotted Unitsat the Applicable NAV for the application amount.

All allotments will be provisional, subject to realizationof payment instrument and subject to the AMC havingbeen reasonably satisfied that the Mutual Fund hasreceived clear funds.

(b) Account Statements

An account statement will be sent by ordinary post /courier/ electronic mail to each Unit Holder, stating thenumber of Units purchased/ redeemed, generally within3 Business Days, but not later than 30 days from date ofacceptance of the application.

Any discrepancy in the Account Statement / UnitCertificate should be brought to the notice of the Fund/AMC immediately. The processing of the transaction andcontents of the Account Statement / Unit Certificate willbe deemed to be correct if no error is reported within30 days from the date of Account Statement / UnitCertificate.

D. Note on Anti Money Laundering, Know-Your-Customerand Investor Protection

Anti Money Laundering and Know Your Customer (KYC):In terms of the Prevention of Money Laundering Act, 2002("PMLA") the rules issued there under and the guidelines /circulars issued by SEBI regarding the Anti Money Laundering(AML) Laws, all intermediaries, including Mutual Funds, arerequired to formulate and implement a client identificationprogramme, and to verify and maintain the record of identityand address(es) of investors.

Know Your Client (KYC)

The need to "Know Your Customer" is vital for theprevention of money laundering. The AMC may seekinformation or obtain and retain documentation used toestablish identity either on its own or through anotheragency. It may re-verify identity and obtain any missing oradditional information for this purpose.

The AMC, under powers delegated by the Trustee, shallhave absolute discretion to reject any application, preventfurther transactions by a Unit Holder, delay in processingredemption as per applicable laws or regulations if

(i) after due diligence, the investor / Unit Holder / aperson making the payment on behalf of the investordoes not fulfill the requirements of the "Know YourCustomer" or the AMC believes that the transaction issuspicious in nature as regards money laundering. In thisbehalf the AMC reserves the right to reject any applicationand effect a mandatory Redemption of Units allotted atany time prior to the expiry of 30 Business Days from thedate of the application.

(ii) The AMC determines in its sole discretion that theapplication does not or will not comply with any applicablelaws or regulations.

If the payment for Purchase of Units are made by a thirdparty (e.g. a power of attorney holder, a financing agency, a

relative, etc.), the Unit Holder may be required to givesuch details of such transaction so as to satisfy the AMC ofthe source and/or consideration underlying the transaction.

The Mutual Fund Industry is currently in discussions withan independent agency, CDSL Ventures Limited (to beknown as 'Central Agency) inorder to entrust them withthe responsibility of collection of documents relating toidentity and address and record keeping. As a token ofhaving verified the identity and address and for efficientretrieval of records, the Central Agency will issue anacknowledgement to each investor who submits anapplication and the prescribed documents to the CentralAgency. Investors who have obtained an acknowledgementcan invest in the schemes of the mutual fund by referringto /submitting the acknowledgement in lieu of submittinginformation and documents required under AML Laws.Investors who wish to obtain an acknowledgement haveto submit a completed Application Form ('the Form')along with all the prescribed documents listed in theForm, at any of the Point of Service ('POS'). The Form isavailable at our website (www.aiginvestments.co.in) andAMFI website (www.amfiindia.com). POS are thedesignated centers appointed by the Central Agency forreceiving the Forms, processing data and providing theacknowledgement. List of and location of POS are availableat www.amfiindia.com. On submission of application,documents and information to the satisfaction of the POS,the investor will be given an acknowledgement acrossthe counter. Subsequently, the Central Agency willscrutinize the information and documents submitted bythe investor. In case of any deficiency in the document /information, the form will be rejected.

PERMANENT ACCOUNT NUMBER (PAN)

As per the Securities and Exchange Board of India (SEBI)circular dated April 27, 2007, with effect from July 02,2007, Permanent Account Number (PAN) issued by theIncome Tax Authorities has been made the soleidentification number for all participants transacting inthe securities market including mutual funds, irrespectiveof the amount of transaction.

SEBI has further clarified vide letter dated June 25, 2007,that existing and potential investors, who do not havePAN should apply for PAN immediately and applicationsfor investment should be accompanied with the evidenceof having applied for PAN until December 31, 2007.

Thus, with effect from July 02, 2007 until December 31,2007:

1. All fresh investment applications (irrespective ofthe amount) have to be enclosed with a certifiedcopy of the PAN card.

The certification can be done by any of the following:

a. The distributor/broker through whomtransaction is done or

b. The office of AIG Global Investment GroupMutual Fund or

c. Investor Service Centers of CAMS (Registrar)or

d. Bank Manager attestation or

e. Notary

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Please note that the original PAN card should be furnishedto any of the above for certification.

2. Investment applications without a certified copy ofPAN should enclose:

a. For amount less than Rs. 50,000 - A copy of theevidence of having applied for PAN(acknowledged copy of Form 49A) until PAN isreceived.

b. For amount Rs. 50,000 or more - A copy of theevidence of having applied for PAN(acknowledged copy of Form 49A) and acompleted Form 60/Form 61 along withaddress proof, until PAN is received

Applications which do not comply with any of the aboverequirements are liable to be rejected.

Further, with effect January 01, 2008, submitting a copyof the evidence of having applied for PAN / Form 60/Form61 will not be valid and it will be mandatory for allinvestors to provide a certified copy (as aforesaid) of thePAN card for all investments in the schemes of AIG GlobalInvestment Group Mutual Fund.

Suspicious Transaction Reporting: If after duediligence, the AMC believes that the transaction issuspicious in nature as regards money laundering, theAMC shall report any suspicious transactions tocompetent authorities under the PMLA and rules /guidelines issued there under by SEBI and RBI, furnishany such information in connection therewith to suchauthorities and take any other actions as may be requiredfor the purposes of fulfilling its obligations under thePMLA without obtaining the prior approval of the investor/ Unit Holder / a person making the payment on behalf ofthe investor.

Investor Protection: As the Scheme is a short termincome scheme, it is designed to offer investors liquidityand the Fund anticipates that investors will come in andout of the Scheme frequently. Such frequent purchasesand redemptions by investors can reduce the returns tolong term investors by increasing expenses of the Schemeand can also disrupt portfolio management strategies.Therefore, the Scheme is proposed to be managed withthese risks in mind.

Though the Scheme has no limit on the number ofpurchases and redemptions by any investor, the AMCreserves the right, under powers delegated by theTrustee, to reject any application, prevent furthertransactions by a Unit Holder, or redeem the Units heldby the Unit Holder at any time prior to the expiry of 30Business Days from the date of submission of theapplication if, in the AMC's opinion, a Unit Holder hasbeen indulging in excessively frequent trading or if histrading has been or may be disruptive for the Scheme.

Investors are urged to study the terms of the Offer carefullybefore investing in the Scheme and to retain this OfferDocument for future reference.

Signature mismatches

If the AMC / Registrar finds a signature mismatch while processinga Redemption / switch out request, then the AMC/ Registrarreserves the right to reject or keep the request in abeyance and

process the Redemption only on the basis of supporting documentsconfirming the identity of the investor(s). The list of such documentsrequired in this behalf shall be notified by AMC from time to time.

E. Investor's Personal Information

The AMC may share investors' personal information with thefollowing third parties:

Registrar, Banks and / or authorised external third partieswho are involved in transaction processing, despatchesetc. of investors' investment in the Scheme;

Distributors or Sub-brokers through whom applicationsof investors are received for the Scheme; or

Any other organisations for compliance with any legal orregulatory requirements or to verify the identity ofinvestors for complying with anti-money launderingrequirements.

F. Facilities Offered to Investors under the Scheme

1. Systematic Withdrawal Plan (SWP)

This facility enables the Unitholders to withdraw sums fromtheir Unit accounts in the Scheme at periodic intervals througha one-time request. The withdrawals can be made on Monthlybasis on 1st, 7th, 14th or 21st of every month. This facility isavailable in two options to the Unitholders:

Fixed Option:

Under this option, the Unitholder can seek redemption of afixed amount of not less than Rs. 1000 from his Unit account.In this option the withdrawals will commence from the StartDate (being one of the dates indicated above) mentioned bythe Unitholder in the Application Form for the facility. TheUnits will be redeemed at the Applicable NAV of the respectivedates on which such withdrawals are sought. In case the dayon which the withdrawal is sought is a non-business day forthe Scheme, the same will be processed on the immediatelyfollowing business day.

Appreciation Option:

Under this option, the Unitholder can seek redemption of anamount equal to a periodic appreciation on the investment.The Unitholder redeems only such number of Units, whichwhen multiplied by the Applicable NAV is, in amount termsequal to the appreciation in his investment over the last monthprovided the appreciation is atleast Rs. 1000. In the absence ofany appreciation or appreciation less than Rs. 1000 asmentioned above, the withdrawal under this option will notbe made for that month. The investor would need to indicatein his systematic withdrawal request, the commencement /start date from which the appreciation in investment valueshould be computed. The withdrawal will commence afterone month from the commencement / start date mentionedby the Unitholder in the application Form and can, at theinvestor's discretion be on 1st, 7th, 14th or 21st of the month.The Units will be redeemed at the Applicable NAV of therespective dates on which such withdrawals are sought. Incase the day on which the withdrawal is sought is a non-business day for the Scheme, the same will be processed onthe immediately following business day .In case the investorpurchases additional Units, the withdrawal amount wouldinclude the appreciation generated on such Units as well. Inthe absence of any appreciation or appreciation less than Rs.1000, the redemption under this option will not be made.

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This facility is explained by way of an illustration below:

Date Amount Amount Assumed** Units Unit Value afterInvested (Rs.) Withdrawn NAV per Unit redeemed Balance* SWP

under SWP (Rs.) (Rs.)(Rs.)

April 15, 2006 1,000,000 10.00 – 100,000.00 1,000,000

May 10, 2006 – 7,000.00 10.071 695.065 99304.935 1,000,100.00

June 10, 2006 – 7000.00 10.142 690.199 98614.736 1,000,150.65

July 10, 2006 – 7000.00 10.214 685.334 97929.402 1,000,250.91

August 10, 2006 – 7000.00 10.286 680.537 97248.865 1,000,301.83

September 10, 2006 – 7000.00 10.359 675.741 96573.124 1,000,400.99

October 10, 2006 – 7000.00 10.432 671.012 95902.112 1,000,450.83

November 10, 2006 – 7000.00 10.506 666.286 95235.826 1,000,547.59

December 10, 2006 – 7000.00 10.580 661.626 94574.200 1,000,595.04

January 10, 2007 – 7000.00 10.655 656.969 93917.231 1,000,688.10

February 10, 2007 – 7000.00 10.730 652.377 93264.854 1,000,731.88

March 10, 2007 – 7000.00 10.806 647.788 92617.066 1,000,820.02

April 10, 2007 – 7000.00 10.883 643.205 91973.861 1,000,951.53

May 10, 2007 – 7000.00 10.960 638.686 91335.175 1,001,033.52

** The NAVs in the table above are purely illustrative and should not be understood or construed as assured or guaranteed returns. Entryand Exit Loads are assumed to be NIL for the purpose of the illustration.

* Previous Balance less Units redeemed.

For applicable load on Redemptions through SWP, please refer to the Chapter - LOAD AND FEES AND EXPENSES.

2. Systematic Transfer Plan (STP)

This facility enables the unitholders to switch an amount fromtheir existing investments in a Scheme/Plan/Option of theFund, which is available for investment at that time at periodicintervals through a one time request. The switch can be madeeither weekly, fortnightly or monthly. Under this facility theswitch by the unit holders should be within the same account/folio number. The unitholder has to fulfill the following criteriain order to avail of the Systematic Transfer Plan -

a) A Unit Holder has to have a minimum balance of Rs.25,000/- in a Liquid scheme or

b) Rs 10000 in a non-liquid scheme (in a particular folio) or

c) the minimum amount as stated in the offer document ofthe respective transferor scheme, whichever is higher

d) A minimum of 6 such transfers has to be submitted forthe STP

The transfer will be effected by way of a switch, i.e. redemptionof Units from one Scheme and investment of the proceedsthereof, in the other Scheme at the then prevailing terms ofboth Schemes. All transactions by way of STP shall, however,be subject to the terms (other than minimum applicationamount) of the target Scheme. A Unit Holder who opts for anSTP has the choice of switching (i) a fixed amount or (ii) anamount equal to the periodic appreciation on his/her/itsinvestment in the Scheme from which the transfer is sought,as detailed below:

Fixed Amount

Under this alternative, a Unit Holder may switch a fixed amountof at least Rs. 1,000/- per transaction and the 'STP Date' forthe switch will be as under.

a) where a weekly STP is opted for, the STP Date shall be

the 1st, 7th, 14th or 21st, as the case may be, for theperiod concerned

b) where a fortnightly STP is opted for, the STP Date shallbe the 1st, 7th, 14th or 21st, as the case may be. Forexample if the investor selects 1st then the next datecould be 14th or if he selects 7th then the next date couldbe 21st of the month

c) where a monthly STP is opted for, the STP Date shall bethe 1st, 7th, 14th or 21st, as the case may be, of themonth concerned.

The Units in the Scheme/Plan/Option from which the switch- out is sought will be redeemed at the Applicable NAV of theScheme/Plan/Option on the respective dates on which suchswitches are sought and the new Units in the Scheme/ Plan/Option to which the switch - in is sought will be created at theApplicable NAV of such Scheme/Plan/Option on the respectivedates. In case the day on which the transfer is sought is a non-business day for the Scheme, the same will be processed onthe immediately following business day.

Appreciation:

Under this option, the Unitholder can seek switch of an amountequal to the periodic appreciation on the investment. Thisfacility is available only under monthly frequency. Under thisoption the Unit holder switches only proportionate numberof Units, which when multiplied by the applicable NAV is, inamount terms equal to the appreciation in the investmentover the last month.

The investor has to mention a "Start Date". The 'STP Date'available under this alternative are 1st, 7th, 14th or 21st of themonth. The first switch will happen after one month from thestart date. In case the investor purchases additional Units, theamount to be switched would be equal to the appreciation

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generated on such Units, provided the appreciation is atleastRs. 1000. In the absence of any appreciation or appreciationless than Rs. 1000 as mentioned above, the switch under thisoption will not be made for that month. The Units in theScheme/Plan/Option from which the switch - out is soughtwill be redeemed at the Applicable NAV of the Scheme/Plan/Option on the respective dates on which such switches aresought and the new Units in the Scheme/Plan/ Option to whichthe switch - in is sought will be allotted at the Applicable NAVof such Scheme/Plan/Option on the respective dates. In casethe day on which the transfer is sought is a non-business dayfor the Scheme, the same will be processed on theimmediately following business day.

Note : Investors who avail of either the SWP or STP facilitycan at any time opt out of the facilities or can purchase, redeemor switch outside these facilities at their convenience.

3. Switching

(i) Inter-Scheme Switching

The Transaction Slip can be used by investors to makeinter-Scheme switches within the Fund. All validapplications for switch-out shall be treated as Redemptionand for switch-in as Purchases with the respectiveApplicable NAVs of the Scheme / option.

(ii) Intra-Scheme Switching

Investors can switch between different options underthe Scheme at the Applicable NAV. All valid applicationsfor switch-out shall be treated as Redemption and forswitch-in as Purchases with the respective ApplicableNAVs of the option. As per current Load structure, noEntry or Exit Loads will be charged for intra-schemeswitching. However, AMC may change the Loadsprospectively as indicated in the paragraph on LoadStructure of the Scheme in this Offer Document.

Note: For tax implications on switching please see Chapter onTAX BENEFITS OF INVESTING IN THE FUND

4. Lien on Units for Loans

In conformity with the guidelines and notifications issued bySEBI / Government of India / any other regulatory body fromtime to time, Units under the Scheme may be offered assecurity by way of a lien / charge in favour of scheduled banks,financial institutions, non-banking finance companies (NBFCs)or any other body. The Registrar will note and record the lienagainst such Units. A standard request letter for this purposeis available on request with the Registrar or the AMC.

The Unit Holder will not be able to redeem / switch Unitsunder lien until the Lien Holder provides written authorisationto the Fund that the lien / charge may be vacated. As long asUnits are under lien, the Lien Holder will have completeauthority to exercise the lien, thereby redeeming such Unitsand receiving payment proceeds. In such instance, the UnitHolder will be informed by the Registrar through an accountstatement. In no case will the Units be transferred from theUnit Holder to the Lien Holder. Dividends declared on Unitsunder Lien will be paid / re-invested to the credit of the UnitHolder and not the Lien Holder unless specified otherwise inthe lien letter.

5. Listing and Transfer of Units

The Scheme being open ended, the Units are not proposed tobe listed on any stock exchange and no transfer facility is

provided. However, the Fund may at its sole discretion listthe Units on one or more stock exchanges at a later date.

The Fund will offer and redeem the Units on a continuousbasis after the NFO Period. If a person becomes a Unit Holderin the Scheme consequent to operation of law, the Fund will,subject to production of satisfactory evidence, effect thetransfer, if the transferee is otherwise eligible to hold theUnits. Similarly, in cases of transfers taking place consequentto death or insolvency, the transferee's name will be recordedby the Fund subject to production of satisfactory evidence andif the transferee is otherwise eligible to hold the Units. In allsuch cases, if the transferee is not eligible to hold the Units,the Units will be redeemed and the proceeds will be disbursedto the transferee if such transferee is entitled to the same.

6. Transmission of Units

In case of death of the Unit Holder (individual), Units shall betransmitted in favour of the second-named joint holder ornominee or legal heir/successor, as the case may be, onproduction of a death certificate or any other document to thesatisfaction of the AMC/Registrar. This facility is subject to thelaw applicable to such succession.

7. Nomination Facility

If an application for purchase of Units is made in the name ofa single holder, the Unit Holder may nominate a successor toreceive the Units upon his/her death, subject to the prescribedformalities. Where the Units are held by more than one personjointly, the joint holders may together nominate a person inwhom all the rights in the Units shall vest in the event of thedeath of all the joint Unit Holders.

This facility is subject to the law applicable to such succession.

Only the following categories of Indian residents may benominated: (a) individuals; (b) minors through parent / legalguardian (whose name and address must be provided); and (c)religious or charitable trusts.

A nomination in respect of Units will be treated as rescindedupon the Redemption of the Units. Cancellation of a nominationcan be made only by the Unit Holders who made the originalnomination and must be notified in writing. On receipt of avalid cancellation, the nomination shall be treated as rescindedand the AMC / Fund shall not be under any obligation to transferthe Units in favour of the nominee.

The transfer of Units / payment to the nominee of theRedemption proceeds shall be valid and effectual against anydemand made upon the Fund / AMC / Trustee and shalldischarge the Fund / AMC / Trustee of all liability towards theestate of the deceased Unit Holder and his / her legal personalrepresentative or other successors.

The Fund, the AMC and the Trustee are entitled to beindemnified from the deceased Unit Holder's estate againstany liabilities whatsoever that any of them may suffer or incurin connection with a nomination.

8. Folio Number/Account Number

Unless otherwise requested by the Unit Holder, a single folionumber may be assigned if an investor invests in differentschemes of the Fund, and a consolidated account statementwill then be provided for investments in all the schemes.

9. Fractional Units

Since a request for Purchase or Redemption is generally made

39

in rupee amounts and not in terms of a fixed number of Unitsof the Scheme, an investor may be left with fractional Units.Fractional Units will be computed and accounted for up tofour decimal places for the Scheme. However, fractional Unitswill in no way affect the investor's ability to redeem the Units,either in part or in full, standing to the Unit Holder's credit.

G. Redemption of Units

The Unit Holder has the option to request for Redemptioneither in amount in rupees or in number of Units.

Units purchased by cheque may not be redeemed until afterrealization of the cheque. In case the investor mentions thenumber of Units as well as the amount, then the amount willbe considered for processing the Redemption request. In casethe investor mentions the number of units or the amount inwords and figures, then the value in words will be taken forprocessing the Redemption request.

If the redemption request amount exceeds the balance lyingto the credit of the Unitholder's said account, then the fundshall redeem the entire amount lying to the credit of theUnitholder's account in that Scheme/Plan/Option

If an investor has purchased Units on more than one WorkingDay, the Units purchased prior in time (i.e. those Units whichhave been held for the longest period of time), are deemed tohave been redeemed first, i.e. on a First In First Out Basisexcept when the Unitholder specifically requests redemptionof Units purchased on specific date(s).

The minimum amount in rupees for Redemption shall be Rs.1,000/- or account balance which ever is less.

Units can be redeemed (sold back to the Fund) at theRedemption Price during the Ongoing Offer Period. If aninvestor has purchased Units of a Scheme on more than one

Business Day the Units will be redeemed on a first-in-first-out basis. If multiple Purchases are made on the same day, thePurchase appearing earliest in the account statement will beredeemed first.

1. Redemption Price

The Redemption Price of the Units is the price at which aUnit Holder can redeem Units of a scheme. It will be calculatedas described below:

Redemption Price = Applicable NAV x (1 - Exit Load* orCDSC*)

* Either Exit Load or CDSC, whichever is applicable, will becharged.

Redemption Price will be calculated for up to four decimalplaces for the Scheme.

For example, if the Applicable NAV of a Scheme is Rs.10/- andit has a 2% Exit Load, the Redemption Price will be calculatedas follows:

Redemption Price = Rs. 10 x (1 - 2.00%) i.e. Rs. 10 x 0.98 =Rs. 9.8/-

If the Scheme has no Exit Load and no CDSC, the RedemptionPrice will be equal to the Applicable NAV.

The Securities Transaction Tax levied under the Income TaxAct, 1961 at the rate of 0.25% (or such other applicable rate)on the amount of redemption will be reduced from the amountof redemption. To illustrate:

If a Redemption of 1,000 units is sought by the Unit Holder ata Redemption Price of Rs. 9.80/- (as calculated above), the

Redemption amount is Rs. 9,800/-. This will be further reducedby Rs. 25/- (i.e. Rs. 9,800 x 0.25%, rounded of to the nearestrupee), making the net Redemption amount Rs. 9,775/-.

If a Redemption of Rs. 10,000/- is sought by the Unit Holder ata Redemption Price of Rs. 9.80/- (as calculated above), theeffective Redemption amount will be grossed up to Rs. 10,025/-(i.e. 10,000 ÷ (1-0.25%)) and 1022.959 units (10,025 ÷ 9.80)will be redeemed. This is to ensure that the Unit Holderreceives the net amount of Rs. 10,000/- as desired.

Investors may note that the Trustee has a right to modify theexisting Load structure in any manner or introduce an EntryLoad or Exit Load or CDSC or a combination of Entry Loadand / or Exit Load and / or CDSC and / or any other Loadsubject to a maximum as prescribed under the Regulationsand with prospective effect only.

Please refer to the Chapter LOAD AND FEES ANDEXPENSES for more details.

2. How to Redeem

A Transaction Slip or Common Transaction Form (CTF) can beused by the Unit Holder to request for a Redemption. Therequisite details should be entered in the Transaction Slip orForm and submitted at an ISC. Transaction Slips or the CTFcan be obtained from any of the ISCs.

3. Payment of Proceeds

Resident Investors

Redemption proceeds will be paid by cheques, marked "A/cPayee only" and drawn in the name of the sole holder / firstnamed holder (as determined by the records of the Registrar)or Direct Credit to a set of banks with which the AMC has atie up.

The bank name and bank account number, as given by the unitholder, will be mentioned in the cheque. The cheque will bepayable at par at all the cities having ISCs. If the Unit Holderresides in any other city, he will be paid by a demand draftpayable at the city of his residence and the demand draft chargesshall be borne by the AMC.

Direct Credit

The fund offers a Direct facility through which the investor'sbank account is credited with the Redemption proceeds. It isclarified that in the event of any non credit by the bank and/orwrongful credit due to incorrect bank account details providedby the unit holder, the AMC / Registrar will not be liable. Inthe interest of the investors, it is advised that due care istaken while providing the bank details to the Fund. The DirectCredit facility is available for specific banks with whom AMChave a tie up from time to time. Investors need to check withthe AMC for an updated list of the Direct Credit Banks.Investors having bank mandates where the AMC has a DirectCredit facility will receive redemption/dividend proceeds byway of Direct Credit only and not cheques.

The Fund will endeavour to despatch the Redemption proceedswithin 3 Business Days from the acceptance of the Redemptionrequest, but not beyond 10 Business Days from the date ofRedemption. If the payment is not made within the periodstipulated in the Regulations, the Unit Holder shall be paidinterest as per the SEBI regulations.

Note: The Trustee, at its discretion at a later date, may chooseto alter or add other modes of payment.

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The Redemption proceeds will be sent by courier or (if theaddressee city is not serviced by the courier) by registeredpost. The despatch for the purpose of delivery through thecourier / postal department, as the case may be, shall betreated as delivery to the investor. The AMC / Registrar arenot responsible for any delayed delivery or non-delivery orany consequences thereof, if the despatch has been madecorrectly as stated in this paragraph.

Non-Resident Investors

For NRIs, Redemption proceeds will be remitted dependingupon the source of investment as follows:

(i) Repatriation Basis

When Units have been purchased through remittance inforeign exchange from abroad or by cheque / draft issuedfrom proceeds of the Unit Holder's FCNR deposit orfrom funds held in the Unit Holder's Non Resident(External) account kept in India, the proceeds can beremitted to the Unit Holder in foreign currency (anyexchange rate fluctuation will be borne by the UnitHolder). The proceeds can also be sent to his Indianaddress for crediting to his NRE / FCNR / Non-Resident(Ordinary) Account, if desired by the Unit Holder.

(ii) Non Repatriation Basis

When Units have been purchased from funds held in theUnit Holder's Non-Resident (Ordinary) Account, theproceeds will be sent to the Unit Holder's Indian addressfor crediting to the Unit Holder's Non-Resident(Ordinary) account.

For FIIs, the designated branch of the authorised dealermay allow remittance of net sale / maturity proceeds(after payment of taxes) or credit the amount to theForeign Currency account or Non-resident Rupee accountof the FII maintained in accordance with the approvalgranted to it by the RBI.

The Fund will not be liable for any delays or for any losson account of any exchange fluctuations while convertingthe Rupee amount in foreign exchange in the case oftransactions with NRIs / FIIs.

The proceeds may be paid by way of direct credit throughwhich the investor's bank account specified in theRegistrar's records is credited with the Redemptionproceeds. The Direct Credit facility is available forspecific banks with whom AMC have a tie up from timeto time. Investors need to check with the AMC for anupdated list of the Direct Credit Banks. Investors havingbank mandates where the AMC has a Direct Credit facilitywill receive redemption/dividend proceeds by way ofDirect Credit only and not cheques.

The Fund may make other arrangements for effectingpayment of Redemption proceeds in future.

4. Effect of Redemptions

The number of Units held by the Unit Holder in his folio willstand reduced by the number of Units Redeemed. Units onceredeemed will be extinguished and will not be reissued.

5. Unclaimed Redemptions and Dividends

As per circular no. MFD/CIR/9/120/2000 dated November 24,2000 issued by SEBI, the unclaimed Redemption and dividendamounts shall be deployed by the Fund in call money market

or money market instruments only. The investmentmanagement fee charged by the AMC for managing suchunclaimed amounts shall not exceed 50 basis points. Thecircular also specifies that investors who claim these amountsduring a period of three years from the due date shall be paidat the prevailing NAV. Thus, after a period of three years, thisamount can be transferred to a pool account and the investorscan claim the said amounts at the NAV prevailing at the end ofthe third year. In terms of the circular, the onus is on the AMCto make a continuous effort to remind investors through lettersto take their unclaimed amounts. The details of such unclaimedamounts shall be disclosed in the annual report sent to theUnit Holders.

There is no unclaimed Redemption or dividend amount.

H. Suspension of the Purchase and Redemption of Units

Subject to the approval of the Boards of the AMC and of theTrustee, and subject also to necessary communication of thesame to SEBI, the determination of the NAV of the Units ofthe Scheme, and consequently of the Purchase, Redemptionand switching of Units, may be temporarily suspended in anyof the conditions described below:a) When one or more stock exchanges or markets which

provide the basis of valuation for a substantial portion ofthe assets of the Scheme is closed otherwise than forordinary holidays;

b) When, as a result of political, economic or monetaryevents or any other circumstances outside the control ofthe Trustee and the AMC, the disposal of the assets of theScheme is not considered to be reasonably practicable ormight otherwise be detrimental to the interests of theUnit Holders;

c) In the event of breakdown in the means of communicationused for the valuation of investments of the Scheme, sothat the value of the securities of the Scheme cannot beaccurately or reliably arrived at;

d) If, in the opinion of the AMC, extreme volatility of marketscauses or might cause, prejudice to the interests of theUnit Holders of the Scheme;

e) In case of natural calamities, war, strikes, riots, and bandhs;f) In case of any other event of force majeure or disaster

that in the opinion of the AMC affects the normalfunctioning of the AMC or the Registrar; or

g) If so directed by SEBI.

In any of the above eventualities, the time limits for processingrequests for subscription and Redemption of Units will not beapplicable. All types of subscription and Redemption of Unitswill be processed on the basis of the immediately nextApplicable NAV after the resumption of dealings in Units.

I. Right to Limit Redemptions

The Trustee may, in the general interest of the Unit Holdersof the Scheme and when considered appropriate to do sobased on unforeseen circumstances / unusual marketconditions, limit the total number of Units which may beredeemed on any Business Day to 5% of the total number ofUnits then in issue under the Scheme and option(s) thereofor such other percentage as the Trustee may determine. AnyUnits which consequently are not redeemed on a particularBusiness Day will be carried forward for Redemption to thenext Business Day, in order of receipt. Redemptions so carried

41

forward will be priced on the basis of the Applicable NAV(subject to the prevailing Load) of the Business Day on whichRedemption is made. Under such circumstances, to the extentmultiple Redemption requests are received at the same timeon a single Business Day, redemptions will be made on a pro-rata basis based on the size of each Redemption request, thebalance amount being carried forward for Redemption to thenext Business Day. In addition, the Trustee reserves the right,in its sole discretion, to limit redemptions with respect to anysingle account to an amount of Rs. 1,00,000 in a single day.

VIII. Unit Holders’ Rights and Services

A. Unit Holders’ Rights

i. Unit Holders of the Scheme(s) have a proportionate rightin the beneficial ownership of the assets of the Scheme(s).

ii. If the Fund declares a dividend under the Scheme, it isbound to despatch the dividend warrants within 30 daysfrom the date of declaration of the dividend.

iii. The Trustee is bound to disclose to the Unit Holders, anyimportant information known to the Trustee which mayhave a material adverse bearing on their investments.

iv. The appointment of the AMC for the Fund may beterminated by the Trustee or by 75% of the Unit Holdersof the Scheme and any change in the appointment of theAMC will be subject to the prior approval of SEBI and theUnit Holders.

v. The Trustee is obliged to convene a meeting on arequisition of 75% of the Unit Holders of the Scheme /options.

vi. 75% of the Unit Holders can pass a resolution to wind upthe relevant Scheme.

vii. Unit Holders have the right to inspect all the documentslisted under the paragraph "Documents Available forInspection" in the Offer Document.

viii. The Trustees shall ensure that no change in thefundamental attributes of any scheme or the trust or feesand expenses payable or any other change which wouldmodify the scheme and affects the interest of unitholders,shall be carried out unless, -

(a) a written communication about the proposed changeis sent to each unitholder and an advertisement isgiven in one English daily newspaper havingnationwide circulation as well as in a newspaperpublished in the language of the region where theHead Office of the mutual fund is situated; and

(b) the unitholders are given an option to exit at theprevailing Net Asset Value without any exit load.

ix. The Trustee shall obtain the consent of the Unit Holders:

a) whenever required to do so by the Regulations orotherwise by SEBI, in the interest of Unit Holders;

b) whenever required to do so on a requisition made by75% of the Unit Holders of the relevant Scheme; and

c) if the Trustee decides to propose the winding-up ofthe Fund or of the relevant scheme.

In circumstances requiring the approval of Unit Holders,the AMC shall be guided by the directions issued by SEBIand / or the Trustee, under the Regulations about themanner of obtaining such approval.

B. Voting Rights of the Unit Holders

Subject to the provisions of the Regulations as amended fromtime to time, the consent of the Unit Holders shall be obtained,entirely at the option of the Trustee, either at a meeting of theUnit Holders or through postal ballot. Only one Unit Holderin respect of each folio or account representing a holding shallvote and he shall have one vote in respect of each resolution tobe passed.

C. Account Statements and Unit Certificates

Full allotment of the initial Units of the Scheme will be madeto all valid applications within 30 days from the date of closureof the NFO Period. An account statement will be sent byordinary post / courier / electronic mail to each Unit Holder,stating the number of Units purchased, not later than 30 daysfrom the close of the NFO Period.

In the Ongoing Offer period, the account statement will besent by ordinary post /courier/ electronic mail to each UnitHolder, stating the number of Units purchased/ redeemed,generally within 3 Business Days, but not later than 30 daysfrom date of acceptance of the valid application.

Account statements to be issued in lieu of Unit Certificatesunder the Scheme shall be nontransferable. The accountstatement shall not be construed as a proof of title.

A non-transferable Unit Certificate will be sent to the UnitHolder within 6 weeks following the receipt of a writtenrequest.

Units are non-transferable. The Trustee reserves the right tomake the Units transferable at a later date, subject to theRegulations.

All Units will rank pari passu, among Units within the sameoption in the Scheme, as to assets and earnings.

D. NAV Information

The NAVs of the Scheme will be calculated by the Fund on allBusiness Days and details may be obtained by calling theinvestor care number "1800 425 3444 (MTNL/BSNL)/60003444(Others)" of the AMC. The Fund will publish on a daily basisthe NAVs, Purchase Price and Redemption Price of the Schemein at least two daily newspapers. The NAV of the Scheme willalso be updated on the website of the AMC i.e.www.aiginvestments.co.in and on the AMFI website i.e.www.amfiindia.com.

E. Disclosure of Information under the Regulations

An annual report of the Scheme will be prepared as at the endof each financial year (March 31st) and copies of the report oran abridged summary thereof will be mailed to all Unit Holdersas soon as possible but not later than 6 months from theclosure of the relevant financial year. If the report is mailed ina summary form, the full report will be available for inspectionat the registered office of the Trustee and a copy thereof onrequest to the Unit Holders on payment of a nominal fee.

In addition, the Fund shall before the expiry of one monthfrom the close of each half year (March 31st and September30th) publish its unaudited financial results in one nationalEnglish daily newspaper circulating in the whole of India and ina Marathi daily newspaper. These shall also be displayed onthe website of the AMC and that of AMFI.

Full portfolio details, in the prescribed format, shall also bedisclosed either by publishing it in the newspapers or by

42

sending to the Unit Holders within one month from the endof each half-year and it shall also be displayed on the websiteof the AMC.

F. Duration of the SchemeThe duration of the Scheme is perpetual. However, inaccordance with the Regulations, the Scheme may be woundup, after repaying the amount due to the Unit Holders:a) on the happening of any event which, in the opinion of the

Trustee, requires the Scheme to be wound up;b) if 75% of the Unit Holders of the Scheme pass a

resolution that the Scheme be wound up;c) if SEBI so directs in the interests of Unit Holders; ord) in case of non-fulfillment of two conditions prescribed in

terms of minimum number of investors vide SEBI circularNo. SEBI/IMD/CIR No. 10/22701/03 dated December 12,2003 (including amendments thereto from time to time).

If the Scheme is so wound up, the Trustee shall give notice ofthe circumstances leading to the winding up of the Scheme:a) to SEBI; andb) in two daily newspapers having a circulation all over India

and in a vernacular newspaper with circulation in Mumbai.On and from the date of the publication of notice of windingup, the Trustee or the AMC, as the case may be, shall:a) cease to carry on any business activities in respect of the

Scheme so wound up;b) cease to create or cancel Units in the Scheme; andc) cease to issue or redeem Units in the Scheme.

G. Procedure and Manner of Winding Up

The Trustee shall call a meeting of the Unit Holders to approve,by simple majority of the Unit Holders present and voting atthe meeting, a resolution authorising the Trustee or any otherperson to take steps for winding up of the Scheme.

The Trustee, or other person authorised as above, shall disposeof the assets of the Scheme concerned in the best interest ofUnit Holders of the Scheme. The proceeds of sale shall befirst utilised towards discharge of such liabilities as are dueand payable under the Scheme, and, after meeting theexpenses connected with the winding up, the balance shall bepaid to the Unit Holders in proportion to their respectiveinterests in the assets of the Scheme, as on the date when thedecision for winding up was taken.

On completion of the winding up, the Trustee shall forward toSEBI and the Unit Holders, a report on the winding up detailingthe circumstances leading to the winding up, the steps takenfor disposal of the assets of the Scheme before winding up,net assets available for distribution to the Unit Holders and acertificate from the Auditors of the Fund.

Notwithstanding anything contained herein above, theprovisions of the SEBI Regulations in respect of disclosures ofhalf-yearly reports and annual reports shall continue to beapplicable until winding up is completed or the Scheme ceasesto exist.

After the receipt of the Trustee's report referred to above, ifSEBI is satisfied that all measures for winding up of the Schemehave been complied with, the Scheme shall cease to exist.

On and from the date of the publication of the notice of windingup as stated above, the Trustee or the AMC as the case maybe,shall:

(a) cease to carry on any business activities in respect of theScheme so wound up;

(b) cease to create or cancel Units in the Scheme; and

(c) cease to issue or redeem Units in the Scheme.

H. Services to Unit Holders

Investor Services

Investors can enquire about NAVs, Unit Holdings, Valuation,Dividends, etc or lodge any service request at "1800 425 3444(MTNL/BSNL)/60003444 (Others)". Alternately, the investorcan call at the AMC branch office as well for any information.In order to protect confidentiality of information, the servicerepresentatives may require personal information of theinvestor for verification of his / her identity. The AMC will atall times endeavour to handle transactions efficiently and toresolve any investor grievances promptly.

Investor grievances should be addressed to Investor Servicesat the AMC branch offices, or CAMS Investor Service Centres.All grievances will then be forwarded to the Registrar, ifrequired, for necessary action. The complaints will closely befollowed up with the Registrar and the AMC to ensure timelyredressal and prompt investor service.

Investors can also address their queries to the InvestorRelations officer, Ms Usha Mallya, FCH House, Ground Floor,Peninsula Park, G. K. Marg, Lower Parel, Mumbai - 400013.Investors may also send their complaints by email toinvestorcare@aig.com

Receiving Account Statement/Correspondence by email

The Fund will encourage the investors to provide their emailaddresses for all correspondence. The AMC's website mayfacilitate request for Account Statement by Unit Holders. TheFund will endeavour to send Account Statements and any othercorrespondence, including Annual Reports, using e-mail asthe mode for communication as may be decided from time totime.

The Unit Holder will be required to download and print theAccount Statement after receiving the e-mail from the Fund.Should the Unit Holder experience any difficulty in accessingthe electronically delivered Account Statement, he/she shallpromptly inform the Fund in order to enable the Fund tomake the delivery through alternate means. Failure to advisethe Fund of such difficulty within 24 hours after receiving thee-mail will serve as an affirmation regarding the acceptance bythe Unit Holder of the Account Statement.

It is deemed that the Unit Holder is aware of all security risksincluding possible third party interception of the AccountStatements and content of the Account Statements becomingknown to third parties.

Under no circumstances, including negligence, shall the Fund oranyone involved in creating, producing, delivering or managing theAccount Statements of the Unit Holders, be liable for any direct,indirect, incidental, special or consequential damages that mayresult from the use of or inability to use the service or out of thebreach of any warranty. The use and storage of any informationincluding, without limitation, the password, account information,transaction activity, account balances and any other informationavailable on the Unit Holder's personal computer is at the risk andsole responsibility of the Unit Holder.

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Use of Intermediaries

The investor is aware that the Fund and/or AMC need to useintermediaries such as post office, local and international couriers,banks and other intermediaries for correspondence with theinvestor and for making payments to the investor by cheques,drafts, warrants, through Electronic Clearing Services (ECS) etc.The investor expressly agrees and authorises the Fund and AMC(including their agents) to correspond with the investor or makepayments through intermediaries including but not limited to postoffice, local and international couriers and banks. The investorclearly understands that the Fund and AMC use such intermediariesfor convenience of the investor and such intermediaries are agentsof the investor and not the Fund or AMC. The Fund and/or AMC ortheir agents are not responsible in any manner whatsoever fordelayed receipt or non-receipt of any correspondence or paymentthrough such intermediaries.

Information Dissemination

The AMC will disclose the first NAV of the Scheme not later than30 days from the closure of New Fund Offer Period. Subsequently,the NAV will be disclosed at the close of all Business Days.Information regarding NAV can be obtained by the Unit Holders /Investors by calling or visiting the nearest ISC.

The NAVs of the Scheme shall be published at least in two dailynewspapers on a daily basis in accordance with the SEBI Regulations.NAVs will also be displayed on the Website of the AMCwww.aiginvestments.co.in

The AMC shall update the NAVs on the website of Association ofMutual Funds in India - AMFI (www.amfiindia.com) and the websiteof the AMC by 9.00 p.m. everyday. In case of any delay, the reasonsfor such delay would be explained to AMFI and SEBI by the nextday. If the NAVs are not available before commencement of businesshours on the following day due to any reason, the AMC shall issuea press release providing reasons and explaining when theAMCwould be able to publish the NAVs.

The Redemption price of Units shall be published in a dailynewspaper on a daily basis in accordance with the SEBI Regulations.

The AMC may display the newsletters on the website of the AMCwww.aiginvestments.co.in. Investors / Unit Holders, on writtenrequest can obtain (post/e-mail) a copy of the Newsletter or contactany of the Investor Service Centres.

An abridged scheme-wise annual report shall be mailed to all UnitHolders not later than six months from the date of closure of therelevant accounting year and the full annual report shall be availablefor inspection at the head office of the Fund and a copy shall bemade available to the Unit Holders on request and on payment ofnominal fees, if any. These results shall also be displayed on thewebsite of the AMC (www.aiginvestments.co.in) and that of AMFI(www.amfiindia.com).

Before expiry of one month from the close of each half year that ison March 31 and September 30, the Fund shall publish its unauditedfinancial results in one national English daily newspaper and in anewspaper in the language of the region where the Head Office ofthe Fund is situated, as per the format prescribed by SEBI. Theseresults shall also be displayed on the website of the AMC(www.aiginvestments.co.in) and that of AMFI (www.amfiindia.com).

The Fund shall, before the expiry of one month from the close ofeach half year i.e. March 31 and September 30, send to all UnitHolders a complete statement of its Scheme's portfolio. Providedthat the statement of Scheme's portfolio may not be sent to the

Unit Holders if the statement is published, by way of anadvertisement, in one English daily Newspaper circulating in thewhole of India and in a newspaper published in the language of theregion where the Head Office of the Fund is situated. The statementof the Scheme's Portfolio shall also be displayed on the website ofthe Mutual Fund (www.aiginvestments.co.in). The statement ofthe Scheme's Portfolio shall be in the format as prescribed bySEBI.

The Fund shall disclose large unit holdings in the Scheme which areover 25% of the NAV. The information on the number of suchinvestors and total holdings by them in percentage terms shall bedisclosed in the allotment letters after the New Fund Offer Periodand also in the annual and the half-yearly results.

The annual report containing accounts of the AMC shall be displayedon the website of the AMC (www.aiginvestments.co.in).Unitholders, if they so desire, may request for the annual report ofthe AMC.

History of Investor Complaints

Details of Queries and Complaints received and resolved during28/6/07 to 28/08/07.

Description No of Resolved PendingQueries

ReceivedChange of Address 173 173 –Change of Bank Details 121 121 –SEBI Referal Nil NIl –Client Referal Nil Nil –Stock Exchange Referal Nil Nil –Agent Queries Nil Nil –Non Receipt of Dividend Nil Nil –Revalidation of Dividend Nil Nil –Non Receipt of A/c statement 19 19 –Non Receipt of Redemptionwarrant Nil Nil –Revalidation of RedemptionWarrant Nil Nil –Non encashment ofRedemption warrant Nil Nil –Miscellaneous 570 570 –Total 883 883 –

Note: Miscellaneous includes:

1. Request for Nominations

2. Request for procedures of Redemption/switch etc

3. Addition and deletion of Joint holders/Nominees

4. Change of Name due to marriage/divorce etc / Transmission

5. Change of Dividend Option

6. Pledge / Lein

7. Consolidation of accounts.

8. Email, Date of Birth, PAN, Circle, Bank Details, Contact Person,Mailer, Tax status and Mode of Holding.

IX. Tax Benefits of Investing in the Scheme

The information furnished below outlines briefly the key taximplications applicable to the Fund and the Unit Holders in theFund. It is based on the relevant provisions of the Income Tax

44

Act, 1961 (the “Act”) and Wealth Tax Act, 1957 (collectivelyreferred to as ‘the relevant provisions’) as on September 5, 2007.For this purpose, we have considered the current provisions of theAct as well as the Finance Act, 2007. Since the information below isbased on the relevant provisions as on September 5, 2007, anysubsequent changes in the said provisions could impact the overalltax considerations for the Fund and the Unit Holders in the Fund.

THE FOLLOWING INFORMATION IS PROVIDED FORGENERAL INFORMATION PURPOSES ONLY. IT APPLIESTO THE FUND AND THE UNIT HOLDERS IN THE FUND.PROSPECTIVE UNIT HOLDERS SHOULD MAKE THEIROWN INVESTIGATION OF THE TAX CONSEQUENCESOF SUCH INVESTMENT. EACH PROSPECTIVE UNITHOLDER IS ADVISED TO CONSULT ITS OWN TAXADVISOR WITH RESPECT TO THE SPECIFIC TAXCONSEQUENCES OF BEING A UNIT HOLDER IN THEFUND. THE FUND IS NOT MAKING ANYREPRESENTATION OR WARRANTY TO ANY UNITHOLDER REGARDING ANY LEGAL INTERPRETATIONSAND TAX CONSEQUENCES TO THE FUND AND THEUNIT HOLDERS IN THE FUND.

TAXABILITY OF THE FUND

Income Tax Act, 1961

As a fund set-up under a scheme of a SEBI-registered mutual fund,the taxability of the Fund will be governed by the provisions ofSection 10(23D) and Chapter XII-E of the Act.

Under Section 10(23D) of the Act, any income of a fund set upunder a scheme of a SEBI-registered mutual fund is exempt fromtax.

Under Chapter XII-E of the Act, any income distributed by a mutualfund (other than a money market mutual fund or a liquid fund) to itsunit holders shall be chargeable to tax and the mutual fund will beliable to pay additional tax on the income distributed to its unitholders at the rate of:

(i) 12.5% (plus applicable surcharge of 10% and education cessof 3%) on income distributed by the mutual fund to its unitholders who are individuals or HUFs; and

(ii) 20% (plus applicable surcharge of 10% and education cess of3%) on income distributed by the mutual fund to all othercategories of unit holders

The cumulative effect of Section 10(23D) and Chapter XII-E is thatthe Fund will be exempt from tax on its income earned, but will beliable to pay distribution tax on income distributed to its UnitHolders in the manner described above.

TAXABILITY OF THE UNIT HOLDERS IN THE FUND

1. Income Tax Act, 1961

a. Income from Units

As per Section 10(35) of the Act, any distribution of incomemade by a fund, set up under a scheme of SEBI-registeredmutual fund, to its unit holders is exempt from tax in thehands of the unit holders.

Hence, income distributions by the Fund to its Unit Holderswill be exempt from tax in the hands of the Unit Holders.

b. Taxability on transfer

Unit Holders may realize a gain or a loss on transfer of Units

of the Fund. Redemptions of Units would be regarded as atransfer.

Switching from one Scheme / Option to another Scheme /Option will be effected by way of redemption of Units of therelevant Scheme / Option and reinvestment of the redemptionproceeds in units of the other Scheme / Option selected bythe Unit Holder. Hence, switching will attract the sameimplications as applicable on transfer of such Units.

Under the Act, the gain or loss realized on transfer of Units ofthe Fund may be characterized, based on facts andcircumstances applicable to each investor, as either being inthe nature of capital gains or as business profits.

Capital gains:

Capital gains are liable to tax based on:

(i) the duration for which the Units of the Fund are held prior totransfer; and

(ii) the manner in which the transfer / switch is effected

Gains realised on transfer of Units held for a period in excessof 12 months are classified as long term capital gains; in anyother case, the gains are classified as short term capital gains.The period of holding for additional Units issued under the‘Reinvest Dividend Option’ available in various schemes wouldcommence from the date of allotment of additional Units undersuch option.

Long term capital gains

As per Sections 48 and 112 of the Act, long term capital gainsrealised on transfer of Units are taxable at the rate of 20%(plus applicable surcharge and education cess) after claimingindexation benefit.

Alternatively, the Unit Holder may offer the long term capitalgains realised on transfer of Units to tax at the rate of 10%(plus applicable surcharge and education cess), without claimingany indexation benefit.

In case of an individual or a HUF, being a resident, where thetotal income as reduced by such long term capital gains isbelow the maximum amount, which is not chargeable toincome tax, then, such long term capital gain shall be reducedby the amount by which the total income as so reduced fallsshort of the maximum amount which is not chargeable toincome tax and the tax on the balance of such long term capitalgains shall be computed at the rate of 20% (plus applicablesurcharge and education cess) after claiming indexation benefit.

As per Section 115AD of the Act, long term capital gains realisedby FIIs/sub-accounts on transfer of Units are taxable at therate of 10% (plus applicable surcharge and education cess),and the FIIs / sub-accounts will not be permitted to claimindexation benefit.

Short term capital gains

Short term capital gains realised on transfer of Units are taxableat the normal rates applicable to the Unit Holders. Surchargeand education cess would apply separately.

As per Section 115AD of the Act, short-term capital gainsrealised by FIIs/sub-accounts on transfer of Units are taxableat the rate of 30% (plus applicable surcharge and educationcess).

45

Business profits:

Business profits are liable to tax at the normal rates applicableto the Unit Holders. Surcharge and education cess wouldapply separately.

Tax treaty benefits

Section 90 of the Act provides that taxation of non-residentinvestors would be governed by the provisions of the Act, orthose of a Double Taxation Avoidance Agreement (‘DTAA’)that the Government of India has entered into with theGovernment of any other country of which the non-residentinvestors are tax resident. The provisions of the DTAA prevailover those of the Act if they are more beneficial to the taxpayer.Hence, the above rates are subject to applicable DTAA benefits,if applicable.

c. Special provisions

As per Section 94(7) of the Act, where a person acquires anyunits within a period of 3 months prior to the record date andredeems such units within 9 months after the record date andthe income distributed on such units, within this period, isexempt from income tax, then the loss suffered by such personon transfer of the units, to the extent of the income distributedon the units, shall be ignored while computing incomechargeable to tax.

Section 94(8) of the Act provides that where any person whoacquires any units within a period of 3 months prior to therecord date is allotted additional units without consideration(i.e. bonus units) based on the original holding, any subsequentloss on sale of the original units within a period of 9 monthsfrom the record date shall be ignored for computing incomechargeable to tax. The loss so ignored will be deemed to bethe cost of acquisition of bonus units (held at such time) whenthese bonus units are subsequently sold.

d. Tax deducted at source (‘TDS’)

On income from Units:

No tax is to be deducted from any income credited or paid toUnit Holders in respect of Units of the Fund.

On transfer:

Resident Investors:

No tax is required to be deducted at source from capital gains/ business profits arising at the time of transfer of the Units.

Non-Resident Investors:

Tax is required to be deducted at source under Section 195 ofthe Act on payments made to non-resident investors.

In case of long term capital gains realised from transfer ofUnits in the Fund, tax is required to be deducted at source atthe rate of 20% (plus applicable surcharge and education cess)after considering indexation benefit.

In case of short term capital gains realised from transfer ofUnits in the Fund, tax is required to be deducted at source atthe normal rates applicable to the Unit Holders. Surchargeand education cess would apply separately.

No tax is deductible at source from capital gains realised byFIIs / sub-accounts on transfer of their Units in the Fund inaccordance with the provisions of Section 196D(2) of the Act.

The Central Board of Direct Taxes in its circular no 728, datedOctober 30, 1995, has clarified that in case of payments to anon-resident who is tax resident of a country with which aDTAA is in force, the tax should be deducted at the rate providedin the Finance Act of the relevant year or at the rate providedin the DTAA, whichever is more beneficial to the taxpayer. Inorder for the Unit Holder to obtain the benefit of a lower rateor nil rate, available under a DTAA, the Unit Holder will berequired to provide the Fund with a certificate obtained fromits Assessing Officer confirming the Unit Holder’s eligibilityfor the lower rate or nil rate.

e. Surcharge and education cess

Nature of person Surcharge

Individuals, HUFs, body of 10% surcharge on taxindividuals and association payable if the total taxableof persons income exceeds Rs 10,00,000

Artificial juridical persons 10% surcharge on taxpayable

Firms and resident **10% surcharge on taxcorporate taxpayers payable

Non-resident corporate **2.5% surcharge on taxtax payers payable

Co-operative societies No surcharge is applicableand local authorities

** The surcharge will be applicable to only those firms andcorporate taxpayers having a total taxable income exceedingRs 1,00,00,000.

An education cess of 3% is levied on all taxpayers - theeducation cess is to be paid on the tax payable, plus surcharge.Accordingly, the rates of tax and TDS rates mentioned abovewill be increased by the applicable surcharge and educationcess.

f. Religious and Charitable Trusts

Investment in Units of the Fund by Religious and CharitableTrusts is an eligible investment under Section 11(5) of the Actread with Rule 17C of the Income Tax Rules, 1962.

2. Wealth Tax Act, 1957

Units in the Fund are not treated as ‘assets’ as defined insection 2(ea) of the Wealth Tax Act, 1957. Hence, they wouldnot be liable to wealth tax.

Please note:

1. The tax incidence to Unit Holders could vary materially basedon characterization of income (ie capital gains versus businessprofits) accruing to them in the Fund.

2. In the context of international investors, there can be noassurance that tax treaty provisions, even if more favourable,will apply in determining their liability to tax in India.

3. Tax rates in India may change from time to time. Any suchchanges may adversely affect the taxation of the Fund and / orthe Unit Holders in the Fund.

4. In view of the particularized nature of tax consequences, eachinvestor is advised to consult its own tax advisor with respectto specific tax consequences of being a Unit Holder in theFund.

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X. Other Matters

A. Transactions with the Sponsor / Associates

The Fund was registered on February 9, 2007 and has not hadany transactions with the Sponsor or any of the Sponsor'sassociates from the date of registration till the date of thisOffer Document.

The AMC may however, for purposes of providing certainservices utilise the services of Sponsor, group companies andany other subsidiary or associate company of the Sponsorestablished or to be established at a later date, who is in aposition to provide the requisite services to the AMC.

The AMC, on behalf of the Fund, shall conduct its businesswith the aforesaid companies (including their employees orrelatives) on commercial terms and on arms-length basis andat mutually agreed terms and conditions to the extentpermitted under the SEBI Regulations.

B. Policy on Offshore Investments by the Scheme

Since 1999, mutual funds have been permitted to invest inADRs /GDRs issued by Indian Companies within certain limits.

Since 2002, mutual funds have also been permitted to investin foreign debt securities in countries with full convertiblecurrencies, short term as well as long term debt instrumentswith highest rating (foreign currency credit rating) by accredited/registered credit rating agencies including A-1/AAA by Standardand Poor, P-1/AAA by Moody's, and F1/AAA by Fitch. Mutualfunds are also permitted to invest in government securitieswhere the countries are AAA rated.

Mutual funds can also invest in equity of overseas companieslisted on recognized stock exchanges overseas and units/securities issued by overseas mutual funds or unit trusts whichinvest in the aforesaid securities or are rated as mentionedabove and are registered with overseas regulators.

The aggregate ceiling for the mutual fund industry to invest inADRs/GDRs issued by Indian companies, equity of overseascompanies listed on recognized stock exchanges overseas andrated debt securities (subsequently referred to as "foreignsecurities") has been raised from US $ 3 billion to US $ 4billion vide A.P. (DIR Series) Circular No. 53 dated May 8,2007 issued by the RBI.

SEBI vide circular SEBI/IMD/CIR No.3/9333/07 dated May 14,2007, has permitted mutual funds to invest in ADRs/GDRs/Foreign Securities within overall limit of US$ 4 billion with asub-ceiling for individual mutual funds which should not exceed10% of the net assets managed by them as on March 31st ofeach relevant year, subject to a maximum of US $200 millionper mutual fund.

SEBI vide circular SEBI/IMD/CIR No.7/73202/06 dated August02, 2006 ("ETF Circular") has permitted mutual funds to investin overseas exchange traded funds ("ETFs") within overalllimit of US$ 1 billion with a sub-ceiling for individual mutualfunds which should not exceed 10% of the net assets managedby them as on March 31 of each relevant year subject to amaximum of US $ 50 million per mutual fund.

The Finance Bill for the year 2006-2007 permits a limitednumber of qualified Indian mutual funds to invest, cumulativelyup to $ 1 billion, in overseas ETFs.

To be eligible to invest in overseas ETFs, either of the twoconditions shall be satisfied:

a) The mutual fund shall be in existence for a minimumperiod of 10 years as on December 31, 2006 and managingschemes; or

b) The mutual fund or its sponsor(s) shall have experience,to be certified by the trustees, of investing in foreignsecurities, and an appropriate disclosure regarding thenature of experience shall be made in the offer document.

The ETF Circular also requires mutual funds to appoint adedicated fund manager for making investments in ADRs/GDRs/Foreign Securities and overseas ETFs.

It is the Investment Manager's belief that overseas securitiesoffer new investment and portfolio diversification opportunitiesinto multi-market and multi-currency products. However, suchinvestments also entail additional risks. Such investmentopportunities may be pursued by the Investment Managerprovided they are considered appropriate in terms of theoverall investment objectives of the Scheme. The Schememay then, if necessary, seek applicable permission from SEBIto invest abroad in accordance with the investment objectivesof the Scheme and in accordance with any guidelines (includingin relation to fees and expenses) issued by SEBI, RBI or anyother regulatory agency from time to time. The details ofcalculation for charging such expenses shall be reported tothe Boards of AMC and Trustees and shall also be disclosed inthe Annual Report of the Scheme.

C. Dividends and Distributions

The Trustee may decide to distribute dividend subject to theavailability of distributable surplus as calculated in accordancewith the Regulations and if such distributable surplus is adequatefor distribution in the opinion of the Trustee. The Trustee'sdecision with regard to availability and adequacy, rate, timingand frequency of distribution shall be final. The dividend willbe due to only those Unit Holders whose names appear in theRegister of Unit Holders in the Dividend option of the Schemeon the record date which will be announced in advance. TheUnit Holders have the option of receiving the dividend orreinvesting the same. The dividend will be reinvested at thefirst ex-dividend NAV.

The AMC shall despatch to the Unit Holders, the dividendwarrants within 30 days of the date of declaration of dividend.

D. Inter-Scheme TransfersTransfers of investments from one Scheme to another Schememay be made only if:(a) such transfer is done at the prevailing market price for

quoted instruments on spot basis; and(b) the security(ies) so transferred is / are in conformity

with the investment objective of the scheme to whichsuch transfer has been made.

E. Disclosure under Regulation 25(11)

During the period ending August 28, 2007, no scheme of theFund has invested in companies which have invested in excessof 5% of the net assets of any scheme of the Fund and hencethe requirement as per Regulation 25 (11) to disclose thedetails of investments by companies in excess of 5% of thenet assets of the scheme(s) of the Fund and by any scheme insuch companies is not applicable.

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F. General Information

1. Power to make Rules

Subject to the Regulations, the Trustee may, from time totime, prescribe terms and make rules for the purpose ofgiving effect to the Scheme and may authorise the AMC to addto, alter or amend all or any of such terms and rules.

2. Power to remove Difficulties

If any difficulties arise in giving effect to the provisions of theScheme, the Trustee may, subject to the Regulations, doanything not inconsistent with such provisions, which appearsto it to be necessary, desirable or expedient, for the purposeof removing such difficulty.

3. Penalties and Pending Litigation

1 Cases of penalties awarded by SEBI under Nonethe SEBI Act or any of its regulations againstthe Sponsor of the Mutual Fund or anycompany associated with the Sponsor in anycapacity including the Asset ManagementCompany, Trustee Company / Board ofTrustees, or any of the directors or keypersonnel (specifically the fund managers)of the Asset Management Company andTrustee Company.

For Sponsor and its associates, other than Pleasethe penalties as mentioned above, the See (A)penalties awarded by any financial regulatory belowbody, including stock exchanges, for defaultsin respect of shareholders,debentureholders and depositors.Additionally, penalties awarded for anyeconomic offence and violation of anysecurities laws. All disclosures on penaltiesand action taken against foreign entities maybe limited to the jurisdiction of the countrywhere the principal activities (in terms ofincome / revenue) of the sponsors / associatecompanies are carried out or the where theheadquarter is situated

2 Top 10 monetary penalties in case of foreign Pleaseentities and all monetary penalties in case see (B)of Indian entities, imposed against the AMC below/ Trustee Company / Sponsor or any associateof the sponsor (for irregularities / violationsin the financial services sector or for defaultsin respect of share holders / debentureholders and depositors) in jurisdictioncountry as determined in the above clause,by any financial regulatory body orgovernment authority or settlement arrivedwith any financial regulatory body during thelast five years and details thereof. Penaltiesawarded for economic offences may bedisclosed only in case of AMC, sponsor andTrustee Company.

3 Details of all cases of suspensions and Nonecancellation of certificate of registration (forirregularities / violations in financial servicessector or for defaults in respect of shareholders, debenture holders and depositors)of the AMC, Trustee Company and sponsor

or any associate of the sponsor shall bedisclosed for the last 10 years. (Mutual fundshaving associate companies abroad shallmake the above disclosures for foreign andIndian entities separately.)

4 Any pending material litigation proceedings Noneincidental to the business of the Mutual Fundto which the Sponsor of the Mutual Fund orany company associated with the Sponsor inany capacity including the AMC, Board ofTrustees /Trustee Company or any of thedirectors or key personnel is a party. Anypending criminal cases against the Sponsoror any company associated with the Sponsorin any capacity including the AMC, Board ofTrustees/Trustee Company or any of thedirectors or key personnel should also bedisclosed separately.

5 Any deficiency in the systems and operations None

of the Sponsor of the Mutual Fund or anycompany associated with the sponsor in anycapacity including the AMC or the TrusteeCompany which SEBI has specifically advisedto be disclosed in the offer document, orwhich has been notified by any otherregulatory agency, shall be disclosed.

6 Any enquiry/adjudication proceedings under Nonethe SEBI Act and the Regulations madethereunder, that are in progress against theSponsor of the Mutual Fund or any companyassociated with the Sponsor in any capacityincluding the AMC, Board of Trustees/Trustee Company or any of the Directors orkey personnel of the Asset ManagementCompany shall be disclosed.

A. In common with the insurance and financial services industriesin general, AIG and certain of its subsidiaries are subject tolitigation in the normal course of their business. AIG and certainof its subsidiaries have been the subject of regulatory scrutinyand litigation. AIG publicly discloses in its filings under theSecurities Exchange Act of 1934 on Form 10-K, 10-Q and 8-Kall material legal or regulatory actions to which AIG is subject.

This summary is not intended as an exhaustive description ofevery regulatory matter that involved AIG or its subsidiaries.Rather, it is a synopsis of material regulatory actions involvingAIG and its subsidiaries.

PNC Settlement

In November 2004, AIG and AIG Financial Products ("AIGFP")reached a final settlement with the Securities and ExchangeCommission ("SEC"), the Fraud Section of the United StatesDepartment of Justice ("DOJ") and the United States Attorneyfor the Southern District of Indiana with respect to issuesarising from certain structured transactions entered into withBrightpoint, Inc. and The PNC Financial Services Group, Inc.("PNC"), the marketing of transactions similar to the PNCtransactions and related matters.

As a result of the settlement, AIG disgorged $39,821,000 infees that it received in the PNC transactions, plus prejudgmentinterest of $6,545,000; and established a transaction review

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B. AIG and its member companies operate in over 130 countries and jurisdictions around the world, and while to our knowledge afterreasonable inquiry these are the largest penalties paid by any associate or group company of AIG Capital Corporation during the lastfive years, it is possible that a fine was paid by a foreign associate or group company that was not reported to U.S. Compliance.

Sr. Name of entity Relationship Amount of Reason forNo. with sponsor penalty penalty

1 American International Group, 100% owner of AIG $1.64 billion On February 9, 2006 AIG announced a resolution ofInc. (AIG) - 2006 Capital Corporation claims and matters under investigation with the United

States Department of Justice ("DOJ"), the Securities andExchange Commission ("SEC"), the Office of the NewYork Attorney General ("NYAG") and the New York StateDepartment of Insurance ("DOI"). The settlements resolveoutstanding litigation filed by the SEC, NYAG and DOIagainst AIG and conclude negotiations with these authoritiesand the DOJ in connection with the accounting, financialreporting and insurance brokerage practices of AIG andits subsidiaries, as well as claims, relating to theunderpayment of certain workers' compensation premiumtaxes and other assessments.

2 AIG Financial Products Corp - Associate Company $80 million The U.S. Department of Justice ruled that AIG Financial2004 Products Corp., acting through certain of its employees,

violated federal criminal law in connection with certaintransactions with PNC Financial Services Group, Inc. (PNC)and marketing of similar transaction structures to otherpotential counterparties. The transaction was intended toenable PNC to remove certain assets from its balancesheet.

3 American General Securities I Associate Company $1.1 million The National Association of Securities Dealers (NASD)ncorporated (AGSI) - 2006 fined AGSI $1.1 million for alleged violations of NASD

Conduct Rule 2830(k), which prohibits broker-dealersfrom accepting directed brokerage as part of a mutualfund distribution arrangement, and violation of rulesconcerning retention of e-mail messages and promptforwarding of customer checks. The alleged violationstook place from January 2002 through November 2003.At that time, AGSI took corrective action and stoppedaccepting fees in the form of directed brokerage.

4 Royal Alliance Associates, Associate Company $750,000 On February 27, 2007, the Connecticut BankingInc. 2007. Commissioner announced a settlement with Royal Alliance

Associates, Inc. in connection with a former representative'sfraudulent activities (which include misappropriating clientfunds and directing clients' investments toward securitiesin which the representative held a financial interest). Thesettlement includes a fine of $750,000.

committee to review the appropriateness of certain futuretransactions and retained an independent consultant toexamine certain historic transactions and review policies andprocedures of the transaction review committee. A separatesettlement with the DOJ resulted in an $80 million monetarypenalty and a deferred prosecution agreement. In November2005, the DOJ moved to have the court dismiss the complaintfiled by the DOJ; the motion was granted and the complaintdismissed.

Investigation of Insurance Brokerage Practices andInvestigation and Civil Complaint Concerning Non-Traditional Insurance Products and Other Transactions

On February 9, 2006 AIG announced a resolution of claimsand matters under investigation with the United StatesDepartment of Justice, the Securities and ExchangeCommission, the Office of the New York Attorney Generaland the New York State Department of Insurance. On

February 9, 2006 AIG announced a resolution of claims andmatters under investigation with the United StatesDepartment of Justice (“DOJ”), the Securities and ExchangeCommission (“SEC”), the Office of the New York AttorneyGeneral (“NYAG”) and the New York State Department ofInsurance (“DOI”). The settlements resolve outstandinglitigation filed by the SEC, NYAG and DOI against AIG andconclude negotiations with these authorities and the DOJ inconnection with the accounting, financial reporting andinsurance brokerage practices of AIG and its subsidiaries, aswell as claims, relating to the underpayment of certain workers’compensation premium taxes and other assessments

Details of Litigation against AIGCC in the last 3 years

To the best of our knowledge and on the basis of an internalverification exercise undertaken, we confirm that AIGCC hasnot been a defendant in any litigation in the past three years.

49

Sr. Name of entity Relationship Amount of Reason forNo. with sponsor penalty penalty

5 The penalty was split up among Associate Companies $518,360 The Massachusetts Division of Insurance questioned thecompanies, with $421,782 accuracy of data submitted by the various companiesallocated to American Home listed above to the Workmen's Compensation RatingAssurance Company, National and Inspection Bureau during the period 1990 toUnion Fire Insurance Company present.of Pittsburgh PA, The InsuranceCompany of the State ofPennsylvania, and NewHampshire Insurance Company,and $96,578 allocated to AIUInsurance Company - 2005

6 Domestic Brokerage Group Associate Companies $505,000 The State of Florida fined DBG for filing late data with(DBG) - 2006 the National Council on Compensation Insurance (NCCI)

relating to workers' compensation.

7 DBG Claims Services - 2005 Associate Companies $419,899 The California Workers Compensation Division conductedan audit of a claims office for the period 2002 through2004 and uncovered certain deficiencies.

8 American International Specialty Associate Company $400,000 The Alaska Division of Insurance concluded during aLines Insurance Company - 2005 financial exam that a Life Settlements Trust program was

not an insurance product and should not be accounted foras insurance.

9 DBG - 2007 Associate Companies $400,000 In February 2007, DBG paid a $400,000 forfeiture inOklahoma in connection with the company's priorconduct, not filing rate making data with the NationalCouncil on Compensation Insurance relating to workerscompensation.

10 American General Life and Associate Company $124,150 The North Carolina Department of Insurance'sAccident Insurance Company - examination resulted in violations including incomplete2005 files for terminated agents and customer files that had

incorrectly adverse underwriting decisions notices.

11 DBG Personal Lines. 2006. Associate Companies $108,200 The State of Connecticut fined DBG Personal Lines forlate filing of quarterly reports.

4. Scheme to be binding on the Unit Holders

Subject to the Regulations, the Trustee may, from time totime, add or otherwise vary or alter all or any of the featuresof investment options and terms of the Scheme if necessaryafter obtaining the prior permission of SEBI and Unit Holdersand the same shall be binding on all the Unit Holders of theScheme and any person or persons claiming through or underthem as if each Unit Holder or such person expressly hadagreed that such features and terms shall be so binding. Anyadditions /variations / alternations shall be done only inaccordance with the Regulations.

5. Lien/Set Off

The fund will have a first and paramount right of lien/set-offwith respect to every unit/dividend under any scheme of thefund for any money that may be owed by the unit holder, to it.

6. Register of the Scheme's Unit Holders

Registers of Unit Holders, containing necessary particulars,will be maintained at the registered office of the AMC atMumbai and at the office of the Registrar at Chennai and atsuch other places as the Trustee may decide.

7. Website

The website of the Fund / AMC (www.aiginvestments.co.in)is intended solely for the use of Resident Indians, NRIs, PIOsand FIIs registered with SEBI. It should not be regarded as asolicitation for business in any jurisdiction other than India. In

particular, the information is not for distribution and does notconstitute an offer to sell or the solicitation of an offer to buysecurities in any jurisdiction where such activity is prohibited,including the United States of America. Any persons residentoutside India who nevertheless intend to respond to thismaterial must first satisfy themselves that they are not subjectto any local requirements which restrict or prohibit themfrom so doing. Information other than that relating specificallyto the AMC / the Fund and its products, is for informationpurposes only and should not be relied upon as a basis forinvestment decisions. The AMC cannot be held responsiblefor any information contained in any website linked from thiswebsite.

8. Omnibus Clause

Besides the AMC, the Trustee / Sponsor may also absorbexpenditures in addition to the limits laid down underRegulation 52 of the Regulations.

Further, any amendment / clarification and guidelines includingin the form of notes or circulars issued from time to time bySEBI for the operation and management of mutual fund shallbe applicable.

9. Documents Available for Inspection

Copies of the following documents will be available forinspection on all Business Days during the NFO Period andafterwards, between 10:00 a.m. and 3:00 p.m. at the registered

50

Office of the AMC at FCH House, Ground Floor, PeninsulaCorporate Park, G. K. Marg, Lower Parel, Mumbai 400 013.

Copies of the Memorandum and Articles of Associationof the Trustee Company and of the AMC.

Copy of the Custodian Agreement dated February 15,2007 executed between the Trustee, AMC and CitibankN.A.

Copy of the Investment Management Agreement datedDecember 15, 2006 executed between the Trustee andthe AMC.

Copy of the Trust Deed dated December 15, 2006constituting the Fund.

Copy of the Fund Registration Certificate dated February9, 2007 issued by SEBI.

Copy of the Securities and Exchange Board of India (MutualFunds) Regulations, 1996.

Copy of Indian Trusts Act, 1882.

Copy of the Registrar and Transfer Agent Agreement datedFebruary 15, 2007 between the Trustee, AMC and CAMS.

Copy of letter of consent of Auditors.

NOTES:

NOTWITHSTANDING ANYTHING CONTAINED IN THISOFFER DOCUMENT, THE PROVISIONS OF THE SEBI(MUTUAL FUNDS) REGULATIONS, 1996 AND THEGUIDELINES THEREUNDER SHALL BE APPLICABLE.

THE TERMS OF THE SCHEME WERE APPROVED BY THETRUSTEES ON MAY 17, 2007.

THE TRUSTEE CONFIRMS THAT THE SCHEMEAPPROVED IS A NEW PRODUCT OFFERED BY THE AIGGLOBAL INVESTMENT GROUP MUTUAL FUND. THETRUSTEE ALSO CERTIFIES THAT THE AMC COMPLIESWITH THE REQUIREMENTS OF REGULATION 18(4) OFTHE SEBI (MUTUAL FUNDS) REGULATIONS, 1996.

For and on behalf of the Board of Directors of

AIG Global Asset Management Company (India) Private Limited

(Asset Management Company of the AIG Global Investment GroupMutual Fund)

Place : Mumbai Saurabh SonthaliaDate : September 5, 2007 Chief Executive Officer

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DESIGNATED COLLECTION CENTERS - DURING NFO PERIOD Mumbai: FCH House, Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai - 400 013. New Delhi: 7B, Vandana Building, 11 Tolstoy Marg, New Delhi - 110

001. Kolkata: ‘Lords Suite’ 5th Floor, Unit No. 503, 7/1 Lords Sinha Road, Kolkata - 700 071. Chennai: EL Heights, 3 CMM Street, Kodambakkam High Road, Nungambakkam,Chennai - 600 034. Bangalore: 32, 1st Floor, Imperial Court, Cunningham Road, Bangalore - 560 052. Ahmedabad: Cabin No. 6, 1st Floor, Broadway Business Center, SahjanandComplex, Opp. Citi Bank, C.G. Road, Ahmedabad - 380 006. Pune: Unit No. 305, 3rd Floor, Master Executive Centre Pvt. Ltd., City Point, Dhole Patil Road, Pune - 411 001.

OFFICIAL POINT OF ACCEPTANCE (DURING ONGOING OFFER PERIOD)AMC OFFICES

Mumbai: FCH House, Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai - 400 013. New Delhi: 7B, Vandana Building, 11 Tolstoy Marg, New Delhi - 110001. Kolkata: ‘Lords Suite’ 5th Floor, Unit No. 503, 7/1 Lords Sinha Road, Kolkata - 700 071. Chennai: EL Heights, 3 CMM Street, Kodambakkam High Road, Nungambakkam,Chennai - 600 034. Bangalore: 32, 1st Floor, Imperial Court, Cunningham Road, Bangalore - 560 052. Ahmedabad: Cabin No. 6, 1st Floor, Broadway Business Center, SahjanandComplex, Opp. Citi Bank, C.G. Road, Ahmedabad - 380 006. Pune: Unit No. 305, 3rd Floor, Master Executive Centre Pvt. Ltd., City Point, Dhole Patil Road, Pune - 411 001.

CAMS INVESTOR SERVICE CENTERS - DURING THE ONGOING OFFER PERIOD ONLY

Agra: F-39/203, Sky Tower, Sanjay Place,, Agra, 282002. Ahmedabad: 402-406, 4th Floor - Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge,, Ahmedabad, 380 006.Ajmer: Shop No.S-5, Second Floor, Swami Complex, Ajmer, 305001. Akola: Opp. RLT Science College, Civil Lines, Maharashtra, Akola, 444001. Aligarh: City Enclave, Opp. KumarNursing Home, Ramghat Road, U.P., Aligarh, 202001. Allahabad: No.7 Ist Floor, Bihari Bhawan, 3, S.P. Marg, Civil Lines, Allahabad, 211001. Alwar: 256A, Scheme No:1, Arya Nagar,Alwar, 301001. Amaravati: 81, Gulsham Tower, 2nd Floor, Near Panchsheel Talkies, Amaravati, 444601. Amritsar: 378-Majithia Complex, 1st Floor, M. M. Malviya Road, Amritsar,143001. Anand: 101, A.P. Tower, B/H, Sardhar Gunj, Next to Nathwani Chambers, Anand, 388001. Ankleshwar Bharuch: G-34, Ravi Complex,, Valia Char Rasta, G.I.D.C.,, Ankleshwar-Bharuch, 393 002 . Asansol: Block – G 1st Floor, P C Chatterjee Market Complex, Rambandhu Talab P O Ushagram, Asansol, 713303. Aurangabad: Office No. 1, 1st Floor, AmodiComplex, Juna Bazar, Aurangabad, 431001. Balasore: B C Sen Road,, Balasore, 756001. Bangalore: Trade Centre, 1st Floor, 45, Dikensen Road, ( Next to Manipal Centre ), Bangalore,560 042. Bareilly: F-62-63, Butler Plaza,, Civil Lines, Bareilly, U.P., Bareilly, 243001. Belgaum: Tanish Tower, CTS No. 192/A, Guruwar Peth, Tilakwadi, Belgaum, 590006. Bellary:No.18A, 1st Floor, Opp. Ganesh Petrol Pump, Parvathi Nagar Main Road, Bellary, 583103. Berhampur: First Floor, Upstairs of Aaroon Printers, Gandhi Nagar Main Road, GanjamDt,Orissa,, Berhampur, 760001. Bhagalpur: Dr R P Road, Khalifabag Chowk, Bihar, Bhagalpur, 812001. Bhavnagar: 305-306, Sterling Point, Waghawadi Road, OPP. HDFC BANK,Bhavnagar, 364002. Bhilai: 209, Khichariya Complex, Opp IDBI Bank, Nehru Nagar Square, Bhilai, 490020. Bhilwara: C/o Kodwani & Associates, F-20-21, Apsara Complex, Azad Market,Bhilwara, 311001. Bhopal: C-12, Near City Bank, Above Delhi Prakashan Agency, Zone-I, M.P.Nagar, Bhopal, 462011. Bhubaneswar: 101/ 5, Janpath, Unit – III, Near Hotel Swosti,Bhubaneswar, 751 001. Bhuj - Kutch: Data Solution, Office No:17, I st Floor, Municipal Building Opp Hotel Prince, Station Road,, Bhuj - Kutch, 370001. Bokaro: HC-3, Ist Floor,CityCentre, Sector-4, Bokaro Steel City, Bokaro, 827004. Burdwan: 399, G T Road, Opposite of Talk of the Town, Burdwan, 713101. Calicut: 17/28, H 1st Floor, Manama Building,Mavoor Road, Calicut, 673001. Chandigarh: Deepak Towers, SCO 154-155, 1st Floor, Sector 17-C, Chandigarh, 160 017. Chennai: Ground Floor No.178/10, Kodambakkam HighRoad, Opp. Hotel Palmgrove, Nungambakkam, Chennai, 600 034 . Cochin: 40 / 9633 D, Veekshanam Road, Near International hotel, Cochin, 682 035. Coimbatore: Old # 66 New# 86, Lokamanya Street (West), Ground Floor, R.S.Puram, Coimbatore, 641 002. Cuttack: Near Indian Overseas Bank, Cantonment Road, Cuttack, 753001. Dehradun: 204/121 NariShilp Mandir Marg, Old Connaught Place, Dehradun, 248001. Devengere: 13, Ist Floor, Akkamahadevi Samaj Complex, Church Road, P.J.Extension,, Devengere, 577002. Dhanbad:Urmila Towers, Room No: 111(1st Floor), Bank More, Dhanbad, 826001. Dhule: H. No. 1793 / A, J.B. Road, Near Tower Garden, Maharashtra, Dhule, 424 001. Durgapur: 4/2, BengalAmbuja Housing Development Ltd, Ground Floor, City Centre, Durgapur, 713 216 . Erode: 197, Seshaiyer Complex, Agraharam Street, Erode, 638001. Faridhabad: B-49, Ist Floor, NehruGround, Behind Anupam Sweet House, NIT,, Faridhabad, 121001. Gazhiabad: 113/6 I Floor, Navyug Market, Gazhiabad, 201001. Gorakhpur: Shop No. 3, Second Floor, The Mall,Cross Road, A.D. Chowk, Bank Road Gorakhpur, 273001. Guntur: Door No 5-38-44, 5/1 BRODIPET, Near Ravi Sankar Hotel, Guntur, 522002. Gurgoan: SCO - 17, 3rd Floor, Sector-14, Gurgoan, 122001. Guwahati: Old post office lane, A. K. Azad Lane, Rehabari, Guwahati, 781008. Gwalior: 1st Floor, Singhal Bhavan, Daji Vitthal Ka Bada, Old High Court Road,Gwalior, 474001. Hosur: Shop No.8 J D Plaza, OPP TNEB Office, Royakotta Road, Hosur, 635109. Hubli: 206 & 207. 1st Floor, ‘A’ Block, Kundagol Complex, Opp Court, Club road,Hubli, 580029. Indore: 101, Shalimar Corporate Centre, 8-B, South tukogunj, Opp.Greenpark, Indore, 452 001. Jabalpur: 975,Chouksey Chambers, Near Gitanjali School, 4th Bridge,Napier Town, Jabalpur, 482001. Jaipur: R-7, Yudhisthir Marg ,C-Scheme, Behind Ashok Nagar Police Station, Jaipur, 302 001. Jalandhar: 367/8, Central Town, Opp. Gurudwara DiwanAsthan, Jalandhar, 144001. Jalgaon: 70, Navipeth, Opp. Old Bus Stand, Jalgaon, 425001. Jammu: 660- Gandhi Nagar,, Jammu, 180004. Jamnagar: 217/218, Manek Centre, P.N. Marg,Jamnagar, 361001. Jamshedpur: Millennium Tower, Room No:15 First Floor,, Bistupur, Jamshedpur, 831001. Jhansi: Opp SBI Credit Branch, Babu Lal Kharkana Compound, Gwalior Road,Jhansi, 284001. Jodhpur: 1/5, Nirmal Tower, Ist Chopasani Road, Jodhpur, 342003. Junagadh: Circle Chowk,, Near Choksi Bazar Kaman,, Gujarat, Junagadh, 362001. Kalyani: A - 1/50, Block - A, Kalyani, 741235. Kanpur: I Floor 106 to 108, CITY CENTRE Phase II, 63/ 2, THE MALL, Kanpur, 208 001. Kestopur: AA 101, Prafulla Kanan, Sreeparna Appartment,Ground Floor, Kolkata,, Kestopur, 700101. Kolhapur: AMD Sofex Office No.7, 3rd Floor, Ayodhya Towers, Station Road, Kolhapur, 416001. Kolkata: “LORDS Building”, 7/1,Lord SinhaRoad, Ground Floor, Kolkata, 700 071. Kollam: Kochupilamoodu Junction, Near VLC, Beach Road, Kollam, 691001. Kota: B-33 ‘Kalyan Bhawan, Triangle Part ,Vallabh Nagar, Kota,324007. Kottayam: Door No. IX / 1276, Amboorans Building, Manorama Junction, Kottayam, 686001. Kumbakonam: Jailani Complex, 47, Mutt Street, Tamil Nadu, Kumbakonam,612001. Lucknow: Off # 4,1st Floor,Centre Court Building, 3/c, 5 - Park Road, Hazratganj, Lucknow, 226 001. Ludhiana: U/ GF, Prince Market, Green Field, Near Traffic Lights, SarabhaNagar Pulli, Pakhowal Road, Ludhiana, 141 002. Madurai: 86/71A, Tamilsangam Road,, Madurai, 625 001. Mangalore: No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank, Kadri MainRoad, Kadri, Mangalore, 575 003. Manipal: Academy Annex, First Floor, Opposite Corporation Bank, Upendra Nagar, Manipal, 576104. Mathura: 159/160 Vikas Bazar,, Mathura,281001. Meerut: 108 Ist Floor Shivam Plaza, Opposite Eves Cinema, Hapur Road, Meerut, 250002. Moradabad: B-612 ‘Sudhakar’, Lajpat Nagar, Moradabad, 244001. Mumbai:Rajabahdur Compound, Ground Floor, Opp Allahabad Bank, Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai, 400 023. Muzaffarpur: Brahman toli, Durga Asthan, GolaRoad, Muzaffarpur, 842001. Mysore: No.1, 1st Floor, CH.26 7th Main, 5th Cross, (Above Trishakthi Medicals), Saraswati Puram,, Mysore, 570009. Nagpur: 145 Lendra Park, BehindIndus Ind Bank, New Ramdaspeth, Nagpur, 440 010. Nasik: “Varsha Bungalow”, 1st Floor, Near Rungtha High School, 493, Ashok Stambh, Nasik, 422001. Navasari: Dinesh Vasani &Associates, 103 -Harekrishna Complex, above IDBI Bank, Nr. Vasant Talkies, Chimnabai Road,, Navasari, 396445. Nellore: 97/56, I Floor Immadisetty Towers, Ranganayakulapet Road,Santhapet, Nellore, 524001. New Delhi: 304-305 III Floor, Kanchenjunga Building, 18, Barakhamba Road, Cannaugt Place,, New Delhi, 110 001. Panaji (Goa): No.108, 1st Floor,Gurudutta Bldg, Above Weekender, M G Road, Panaji (Goa), 403 001. Panipat: 83, Devi Lal Shopping Complex, Opp ABN Amro Bank, G.T.Road, Panipat, 132103. Patiala: 35, Newlal Bagh Colony,, Patiala, 147001. Patna: Kamlalaye Shobha Plaza (1st Floor), Near Ashiana Tower, Exhibition Road, Patna, 800 001. Pondicherry: S-8, 100, Jawaharlal Nehru Street,(New Complex, Opp. Indian Coffee House), Pondicherry, 605001. Pune: Nirmiti Eminence, Off No. 6, I Floor, Opp Abhishek Hotel Mehandale Garage Road, Erandawane, Pune, 411 004.Raipur: C-24, Sector 1, Devendra Nagar, Raipur, 492004. Rajahmundry: Cabin 101 D.no 7-27-4, 1st Floor Krishna Complex, Baruvari Street, T Nagar,, Rajahmundry, 533101. Rajkot:111, Pooja Complex, Harihar Chowk, Near GPO Rajkot, 360001. Ranchi: 223,Tirath Mansion (Near Over Bridge),1st Floor, Main Road, Ranchi, 834001. Ratlam: Dafria & Co, 81, BajajKhanna, Ratlam, 457001. Rohtak: 205, 2ND Floor, Blg. No. 2, Munjal Complex, Delhi Road, Rohtak, 124001. Rourkela: 1st Floor, Mangal Bhawan, Phase II, Power House Road, Rourkela,769001. Salem: No.2, I Floor Vivekananda Street, New Fairlands, Salem, 636016. Sambalpur: C/o Raj Tibrewal & Associates, Opp.Town High School, Sansarak, Sambalpur, 768001.Satara: 117 / A / 3 / 22, Shukrawar Peth, Sargam Apartment, Maharashtra, Satara, 415002. Secunderabad: 102, First Floor, Jade Arcade, Paradise Circle, Secunderabad, 500 003.Siliguri: No 8, Swamiji Sarani, Ground Floor, Hakimpara, Siliguri, 734401. Solapur: 4, Lokhandwala Tower, 144, Sidheshwar Peth,, Near Z.P. Opp. Pangal High School, Solapur, 413001.Surat: Office No 2 Ahura -Mazda Complex, First Floor, Sadak Street, Timalyawad, Nanpura, Surat, 395 001. Thiruppur: 1(1), Binny Compound, II Street, Kumaran Road, Thiruppur,641601. Tirunelveli: III Floor, Nellai Plaza, 64-D, Madurai Road, Tirunelveli, 627001. Tirupathi: Shop No14, Boligala Complex, 1st Floor, Door No. 18-8-41B, Near Leela Mahal Circle,Tirumala Byepass Road,, Tirupathi, 517501. Trichur: Adam Bazar, Room no.49, Ground Floor, Rice Bazar (East) Trichur, 680001. Trichy: No 8, I Floor, 8th Cross West Extn, Thillainagar,Trichy, 620018. Trivandrum: R S Complex, Opposite of LIC Building, Pattom PO, Trivandrum, 695004. Udaipur: 32 Ahinsapuri, Fatehpura Circle, Udaipur, 313004. Vadodara: 109- Silver Line, Besides world Trade Centre, Sayajigunj, Vadodara, 390 005. Valsad: C/o. CAD HOUSE, Siddhivinayak Complex, Tithal Road, F-1, First Floor, Avenue Building, Near R.J.J.School,, Valsad, 396001. Varanasi: C 27/249 - 22A, Vivekanand Nagar Colony, Maldhaiya, Varanasi, 221002. Vashi: Mahaveer Center, Office No:17, Plot No:77, Sector 17, Vashi,400703. Vellore: No:54, Ist Floor, Pillaiyar Koil Street, Thotta Palayam, Vellore, 632004. Vijayawada: 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road,Labbipet, Vijayawada, 520 010. Visakhapatnam: 47/ 9 / 17, 1st Floor, 3rd Lane, Dwaraka Nagar, Visakhapatnam, 530 016. Warangal: F13, 1st Floor, BVSS Mayuri Complex, Opp.Public Garden, Lashkar Bazaar, Hanamkonda,, Warangal, 506001.