AIG Investments is a global leader in asset management with extensive capabilities in equities, fixed income, hedge, private equity and real estate investments. Member companies of AIG Investments manage nearly USD 753 billion in assets (including approximately USD 622 billion of AIG-affiliated assets) and employ over 2,000 professionals in 45 offices around the world as of 31 December, 2007. AIG Investments is the asset management arm of American International Group, Inc.

AIG Short Term Fund

Key Facts about the New Fund Offer

AIG Investments is a group of international companies that provide investment advice and market asset management products and services to clients around the world. AIG Investments is a service mark of American International Group, Inc. (AIG). Services and products are provided by one or more affiliates of AIG.

Any opinions expressed in this document may be subject to change without notice. In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved. Parts of this content may be based on information received from sources we consider reliable. We do not represent that all of this information is accurate or complete, however, and it may not be relied upon as such.

Scheme Classification: An open ended income scheme. Investment objective: The primary investment objective of the Scheme is to seek to generate income from a portfolio constituted of short to medium term debt and money market securities. Asset Allocation Pattern: Debt* and money market securities with average maturity less than equal to 370 days or have put options within a period not exceeding 370 days - 40% to 100%; Debt* Instruments including Government Securities, Corporate debt and other debt Instruments with average maturity greater than 370 days - 0 % to 60 %. *Debt securities may include securitized debts upto 75% of the net assets. Terms of issue: Units of Rs. 1000 per unit during the New Fund Offer (NFO) and at applicable NAV thereafter. Offer document, Key Information Memorandum and Application Forms / Transaction Slips available at the ISCs / distributors. Load Structure: Entry load: Nil; Exit load: 0.25% if redeemed within 15 days under retail and institutional plan. General Services: Investors can contact any of the ISCs at its toll-free number 1800-425- 3444 (MTNL/ BSNL); 60003444(Others). NAVs will be calculated on all Business days.

Risk Factors: Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme's objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting the securities markets. Past performance of the Sponsor or mutual funds managed by the Sponsor or its affiliates does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. The Scheme does not guarantee or assure any dividend and also does not guarantee or assure that it will make any dividend distribution, though it has every intention to make the same. All dividend distributions are subject to the investment performance of the Scheme. AIG Short Term Fund is the name of the Scheme and does not, in any manner, indicate the quality of the Scheme, its future prospects or returns. Investments in the Scheme will be affected by trading volumes, settlement periods, volatility, price fluctuations, inability to sell securities, disinvestment of holdings of any unlisted stocks prior to target date of disinvestment, credit risk and interest rate risk. The Scheme and individual Plan(s) with a separate portfolio, if any, under the Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). In case of non – fulfillment with either of the above two conditions, specified SEBI Guidelines in this regard would be complied with. Please read the Offer Document before investing.

Statutory Details: AIG Global Investment Group Mutual Fund (‘the Fund’) has been established as a trust under the Indian Trusts Act, 1882, sponsored by AIG Capital Corporation (liability restricted to Rs. 1 lakh). AIG Trustee Company (India) Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. AIG Global Asset Management Company (India) Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Investment Manager to the Fund.

Rating methodology: ICRA has assigned ‘mfAAA’ to AIG Short Term Fund. The rating indicates highest-credit-quality rating assigned by ICRA to debt funds. The rated debt fund carries the lowest credit risk, similar to that associated with long-term debt obligations rated in the highest-credit-quality category. The rating should, however, not be construed as an indication of the prospective performance of the Mutual Fund scheme or of volatility in its returns. ICRA’s mutual fund rating methodology is based on evaluating the inherent credit quality of the funds portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA uses the concept of “credit scores”. These scores are based on ICRA’s estimates of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund’s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month’s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality.

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