6th

quarter
consecutive

For The

April 30, 2008

Investment Strategy
Focus on companies and sectors that are likely to prosper from growth related to economic reforms and infrastructure investment, since these are likely to be the key drivers of economic growth and corporate profitability in India going forward. India is the world's 10th largest economy in absolute GDP terms and the second fastest growing economy in the world. (Source: ML Research) Main drivers for growth: Infrastructure investment: The growing services sector & higher infrastructure investment are likely to sustain high growth. Corporate restructuring: Indian corporations have benefited from substantial restructuring & cost reduction in the past few years. Consumption: low interest rates & easier availability of credit are contributing to rising consumerism.

Active Allocation Analysis

Sector allocation comparison of DSPMLITF vs. BSE 100.
Cash / Fixed Income / F&O

Current Portfolio
Asset size: Rs. 4,216.66 crore as on April 30, 2008

Textiles Telecom Services Pharma Metals Media & Entertainment IT Industrial Manufacturing Financial Services Fertilisers & Pesticides Energy Consumer Goods Construction Cement & Cement Products Automobile
-15.00% -10.00% -5.00% 0.00% 5.00% 10.00%

Top 10 Stocks
Reliance Industries Bharat Heavy Electricals State Bank of India Jaiprakash Associates Larsen & Toubro ICICI Bank The Great Eastern Shipping Co. IVRCL Infrastructures & Projects Reliance Infrastructure IDFC 6.59% 3.66% 3.49% 3.37% 3.26% 2.83% 2.48% 2.35% 2.27% 2.27%

Top 10 Sectors
Energy 24.26% Financial Services 16.06% Industrial Manufacturing 12.84% Construction 10.79% Metals 9.13% Services 4.67% Telecom 3.98% Cement & Cement Products 2.05% Media & Entertainment 1.16% Pharma 1.01%

15.00%

Sector Outlook
Energy:
In order to sustain growth at 8%- 9% levels through 2031- 32, huge investments are expected in oil exploration as well as power generation The investment in augmenting Power Infrastructure as per the PMs Committee on Infrastructure is approx. US$200 billion. Record high oil prices in the international markets will impact positively the earnings of companies in oil & gas production besides helping the refiners with higher gross refining margins. We believe valuations are still reasonable given potential growth & current low NPA levels. With interest rate cycle peaking, any reduction in rates will add to the Net Interest Margins.

Industrial Manufacturing:
Infrastructure projects and the revival of the CAPEX cycle will likely continue to fuel growth. We expect infrastructure & capital expenditure to be around US$250 billion over the next 3 years Performance & earnings visibility is very strong due to a record order backlog.

Financial Services:
The benefits of high GDP growth on account of consumption growth will continue to accrue benefits to the financial services sector. The sector will open up for M&A after 2009, creating higher demand and richer valuations for the financial services sector

Comparative Performance
68 64 60 56 52 48 44 40 36 32 28 24 20 16 12 8 11-Jun-04 30-Apr-08

DSP Merrill Lynch India T.I.G.E.R. Fund NAV (Growth Option) BSE 100 Index (Normalised)

CAGR (%) Period Last 1 year Last 3 years Since inception*** DSPML India T.I.G.E.R. Fund - Regular Plan (Growth Option*) 29.99% 47.83% 46.72% BSE 100** 30.71% 40.46% 38.76%

* The Returns shown do not take into account the entry load. Hence, actual Returns would be lower than those shown. ** BSE 100 Index as of April 30, 2008 was 9,199.46. *** Note : As per the SEBI standards for performance reporting, the since inception returns are calculated on Rs. 10/- invested at inception. For this purpose the inception date is deemed to be the date of allotment, i.e. 11-Jun-04. NAV as on April 30, 2008 was Rs. 44.3900 (Growth). Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

DSP Merrill Lynch India T.I.G.E.R. Fund has consistently outperformed its benchmark BSE 100.

Dividend History (Regular Plan)

Record Date 22-Feb-08 21-Mar-07 27-Feb-06 11-Apr-05 Dividend per unit (Rs.) 5.00 4.50 4.50 1.50 NAV (Rs.) 26.965 21.964 21.72 13.85

Features
Minimum investment and minimum additional purchase - Regular Plan: Rs. 5,000/- and Rs. 1,000/- thereafter. - Institutional Plan: Rs. 5 crore and Rs. 5 lakh thereafter. Options available (for both plans) Growth Dividend - Payout Dividend - Reinvest Dividend Entry load: - Regular Plan For investments < Rs. 5.0 cr: 2.25% For investments >= Rs 5.0 cr: Nil - Institutional Plan: Nil For SIP Investments: 1% Exit load: - Regular Plan For holding period < 6 months: 1% For holding period >= 6 months but <12months: 0.50% For holding period >= 12 months: Nil - Institutional Plan: Nil - For SIP Investments (Regular Plan only): Holding period < 2 years: 1.25 % Holding period >= 2 years: Nil

Dividend payout is on a face value of Rs. 10/Post declaration of the dividend, the NAV of the scheme will fall to the extent of the dividend pay out statutory levy, if any.

The criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAV's over the 2 year period ending December 2007, Concentration and Liquidity of the schemes. The methodology does not take into account the entry and exit loads levied by the scheme. The composite performance of DSP Merrill Lynch India T.I.G.E.R. Fund in the Open End Equity Category ranks within the top 10% of the73 schemes ranked in this category. The CRISIL CPR is no indication of the performance that can be expected from the schemes in the future. These rankings are not accompanied by rankings by the same agency based on time period shorter and longer than 2 years, since CRISIL publishes Composite Performance ranking for only 2 year period. Ranking Source: CRISIL Fund Service. CRISIL. Past performance is no guarantee of future results. DSPML India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) (DSPMLITF) is an open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector. Asset Allocation: Equity & equity related securities: 90-100%. Debt, securitised debt & money market securities 0%-10%. ADR, GDR & foreign securities: 0-25%. Features: Declaration of NAV on all Business Days. Sale and redemption of units on all Business Days at Purchase Price and Redemption Price. Statutory Details: DSP Merrill Lynch Mutual Fund was set up as a Trust by the settlors, DSP Merrill Lynch Ltd. (DSPML) and Merrill Lynch Investment Managers LP, USA. Sponsors: DSPML, DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. (collectively) (Liability restricted to Rs. 1 lakh). Trustee: DSP Merrill Lynch Trustee Company Pvt. Ltd. Investment Manager: DSP Merrill Lynch Fund Managers Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Schemes objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up or down depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investors holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. DSPML India T.I.G.E.R. Fund is the name of the Scheme and does not in any manner indicate the quality of the Scheme, future prospects or returns. For risk factors related to trading in derivatives and overseas investments, and other scheme specific risk factors, please refer the Offer Document. For more details, please refer the Key Information Memorandum cum Application Form, which is available at the ISC/Distributor. Please read the Offer Document before investing.

Ahmedabad Bangalore Chandigarh Chennai Cochin

: : : : :

3002 2855 6691 2855 305 2855 3918 2855 444 2855

Coimbatore Goa Hyderabad Indore Jaipur

: : : : :

653 2855 664 2855 3058 2855 301 2855 403 2103

Kolkota Lucknow Mumbai Nagpur New Delhi

: : : : :

3058 2855 404 9711 6671 8000 324 2855 3041 2855

Pune Surat Vadodara Vashi

: : : :

3022 2855 398 2855 308 2855 3918 2855

For more information

Call our toll free number 1800-345-4499 or Visit our website : www.dspmlmutualfund.com