Birla India GenNext Fund IPO on 14 June 2005

Birla Mutual fund is launching Birla India GenNext Fund, a thematic fund targeting growth of capital by investing in equities of companies that are expected to benefit from the consumption habits of the young generation in India.

India has a unique demographic advantage due to a large cohort of young urban population, which is actively participating in the country's economic growth and benefiting from the employment opportunities thrown up by a growing services sector. The younger generation has markedly different habits, lifestyle and attitudes in comparison to other segments of the population. As a result of higher disposable incomes, there is a distinct shift towards high value consumption. The spending habit of the youth translates into a surge in demand for products and services of companies that are catering to this segment.

Birla India GenNext Fund is an open-ended diversified equity fund, which would focus its investments in companies that are directly catering to the consumers. The investments would be spread across a universe of industries - such as Automobiles, Travel and Tourism, Healthcare, Banking, Utilities, Retailing, Housing, Consumer Durables, etc. The products/services of the target companies would typically have a distinct brand identity. Focus would be on companies that are cash-generating, have a predictable growth in earnings and are quick to adapt themselves to the ever-changing needs of customers.

"This is a fund driven by the lives and aspirations of India's youth," said Mr. S.V. Prasad, CEO, Birla Mutual Fund. "The fund intends to take advantage of the large opportunity c;reated by the emergence of GenNext (The young generation) as the largest population cohort in the country and its lavish spending habits". The initial offer opens on 14 June 2005 and closes on 12 July 2005. The scheme offers a dividend and growth options and an investor can participate in the scheme with a minimum investment amount of Rs. 5,000.

Birla Sun Life Asset Management Company Ltd: (BSLAMC), the investment managers for Birla Mutual Fund is a joint venture between the Aditya Birla Group and Sun Life Financials Inc. of Canada. With total assets under management of over Rs.11,000 crore (including domestic assets, offshore assets), BSLAMC has consistently endeavoured to provide investors with superior risk adjusted returns in a family of funds, which include diversified and focused equity schemes, balanced and monthly income funds, and a wide range of investment schemes designed to cater to every need of the investor.

For more information kindly contact:
Mr. Ravi Sharma
Vice President - Marketing and Communications
Tel: 5692 8052 (Direct), 5692 8000 (Board)
Fax: 5692 8110 / 5692 8111