Reliance Mutual Fund - presents

Reliance Mutual Fund - presents

Reliance Mutual Fund presents presents Confidential Slide First gold fund of fund in India An Open Ended Fund of Fund Scheme An Open Ended Fund of Fund Scheme

Reliance Mutual Fund - presents

India’s First Fund with SIP in gold NFO Opening Date : 14 February,2011 NFO Opening Date : 14 February,2011 NFO Closing Date : 28 February,2011 Confidential Slide 2

Reliance Mutual Fund - presents

I d Index ‰ Where do Indians invest? Index ‰ A journey through India’s fascination for Gold ‰ Why do we love gold so much? – It has fundamental strength ‰ Why do we love gold so much? It has fundamental strength ‰ Why Buy Gold now? ‰ Problems with investing in gold in India ‰ Introducing Reliance Gold Savings Fund g g ‰ Takeaways

Reliance Mutual Fund - presents

Where do Indians invest? Where do Indians invest?

Wh d l th i ? Real Estate, 5 Chit fund/NBFC 9 4 Where do people save their money? Mutual Fund, 1.2 Equity market, 1.1 , Chit fund/NBFC, 9.4 Gold, 5.8 Banks, 44.9 Life insurance, 32.8 , Postal Savings, 11.6 ‰ Nearly 5 times more household savings is invested in Gold y g than in Equities or Mutual Funds Source: Invest India Incomes and Savings Survey 2007

C k t tf li iti Mutual Fund Mutual Fund Gold Gold Cross market portfolio composition Banks Banks 2.6 2.6 8.0 8.0 Post Post 2.9 2.9 11.7 11.7 Life insurance Life insurance 3.3 3.3 9.3 9.3 100 100 21 6 21 6 Mutual Fund Mutual Fund 100 100 21.6 21.6 Equity market Equity market 32.1 32.1 24.2 24.2 Real Estate Real Estate 3.4 3.4 12.2 12.2 Informal sector Informal sector Informal sector Informal sector 0.7 0.7 8.8 8.8 Gold Gold 4.4 4.4 100 100 ‰ Market penetration in Gold is less by Capital market investors (MFs and equity) y) ‰ Only 21.6% MF investors invest in Gold & only 4.4% Gold investors invest in MFs Source: Invest India Incomes and Savings Survey 2007

A journey through India’s j y g fascination for Gold

Indians Passion for Gold starts before birth It is an Indians Passion for Gold starts before birth – It is an integral part of our Culture ‰ Gold is ancestral and passed down ‰ Gold is ancestral and passed down from generation to generation ‰ Most of the Gold collection generally begins in an Indian family from the "Godbharai" ceremony itself, to getting bracelet & anklet of black & white colored beads to protect the child against the evil eyes ‰ It is common for parents of a child to start collecting gold jewellery for the to start collecting gold jewellery for the child’s security, exigency & marriage

Si ifi f J ll i th Lif f W i I di ‰ Gold possession is embedded in the Significance of Jewellery in the Life of Women in India customs and the traditions that carry significant importance to women ‰ Ornaments such as mangalsutra nath ‰ Ornaments, such as mangalsutra, nath (nose ring) and toe rings, quintessential for married Indian women J ll ift d t t th ti f ‰ Jewellery gifted to women at the time of her marriage is called 'stridhan' i.e. wealth of women, which in short is symbol of wealth, power and femininity

G ld h T diti l V l Gold has Traditional Values ‰ It is believed that buying & wearing new gold jewellery on Akshaya Tritiya Gudi Padwa & Dhanteras, brings prosperity & success to an individual & his family ‰ The festival redefines Gold in all its facets from jewellery adornment to its facets from jewellery adornment to portfolio diversification ‰ Indians consider occasion as an apt time to buy, wear and celebrate gold

I di ’ G ld Off i t G d India’s Gold Offering to God Tirumala is the richest religious shrine in the world The Golden Temple with an annual revenue of Rs.1,200 crore and gold reserves of almost 250kg that are made up of small ornaments thrown in the The Golden Temple main dome is gilded with 100 kg of pure gold Source: Telegraph India (nov 2010), ornaments thrown in the hundi. On an average, the temple receives about 2kg of gold in the hundi every day Source: http://www.amritsar.com/ harmandirsahib.shtml Shirdi’s Sai Baba's Gold Crown Worth Rs.12.5 Lakhs. He resides on a throne of gold weighing Lalbuag cha Raja collected a record Gold offerings from d t i 2010 throne of gold weighing 94 kgs devotees in 2010 Source: liveindia.com, Dec ‘07 Source: Mumbai Mirror, Sept ‘10

C ld ‰ The undying fascination towards the yellow metal is evident in its use currently for Commercial Usage of Gold metal is evident in its use currently for making watches, medals, shoes, cufflinks, tie pins, pens cars, saries, buttons and so on ‰ Collecting watches is one of the most g costly hobbies in the world but very interesting and sometimes really profitable. Currently, the fascination is towards real gold diamond studded watches ‰ Around 8,000 sq m of 22-carat gold leaf have been used in the decor of the lobby and the restaurants of Burj Al Arab ‰ GoldPlus TATA Nano – India’s first Pure Gold Jewellery Car on the way Source: RCAM Research

G ld i t d ll th ld ‰ Gold was not selected arbitrarily by Gold is stored all over the world... Coins, Bars, Jewellery governments to be the monetary standard ‰ Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and providing the most stable and desirable monetary medium ‰ Gold is stored all over the world in various forms

G ld h Edibl d M di Ayurveda gifted us Suvarnaprashan to improve immunity of Child ‘Suvarna’ Gold has Edible and Medicinal Values improve immunity of Child. Suvarna means ‘Gold’ & ‘Prashan’ means ‘to lick’ ‰ Lasers incorporating gold coatings are making dramatic progress in the g g treatment of cancers, sealing battlefield wounds in the field, emergency injury treatments in hospitals & previously inoperable heart conditions & tumors ‰ Today gold flakes and gold dust can be found in many confectioneries and dessert items throughout the world.

Gold can be consumed in the form of can be consumed in the form of chocolates, wine, fruits etc Source: RCAM Research

G ld i th A t It’ St d d ‰ Great achievements are often rewarded Gold is more than an Asset – It’s a Standard with gold – Olympic Gold ‰ Best periods of Prosperity of Civilizations around the world are referred to as Golden around the world are referred to as Golden Age ‰ Best among equals gets Gold – Golden Bat for best batsman, Golden Ball for best Bowler and Golden Boot for the best footballer

Why do we love gold so much? – It has y g fundamental strength

  • G ld A P ll l E i I di Gold - A Parallel Economy in India India runs a parallel Gold economy (gold economy vs. real economy)
  • India’s gold holdings accounts for 11% of ld i th W ld
  • India’s GDP accounts for 2.1%^ of global GDP i i l d ll above-ground stock of gold in the World GDP in nominal dollars
  • Valued at $800bn, our gold holdings valued at nearly 50% of GDP
  • Household bank deposits and equity holdings valued at $625bn and 315bn, ti l valued at nearly 50% of GDP respectively
  • India's share* in global gold demand is 1.5X that of China, the second largest gold consumer
  • India's economy is ~1/4th^ the size that of China in nominal dollars consumer Source: Morgan Stanley, World Gold Council, CMIE, RMF estimates *21% yoy as at end Sept 2010, ^ As at end 2009.

G ld A P ll l E i I di Indian household’s fetish for gold is: S Gold - A Parallel Economy in India Structural:- ‰ Considered a symbol of security and sign of prosperity ‰ Recognized as a form of a tradable liquid 15.00% 20.00% Average Annual 10 year growth rates in India (2000-2009)(%) ‰ Recognized as a form of a tradable liquid asset ‰ A hedge against – inflation, rupee depreciation, and social insecurity 0.00% 5.00% 10.00% ‰ Lack of basic banking facilities, especially in backward areas Cyclical:- Lo real interest rates Population ( mn) Inflation (%) Real GDP (%) Gold demand (Rs bn) Gold Price (Rs/oz) Gold imports (Rs bn) ‰ Low real interest rates ‰ High market/economic uncertainty Source: Morgan Stanley, World Gold Council, CMIE, RMF estimates

Asset Allocation Asset Allocation Asset Allocation Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 22.16% 8.90% 17.51% 12.76% 1.94% 21.23% 18.02% 41.77% 13.94% 6.87% 3.79% 7.86% 20.99% 1.71% 17.39% 11.86% 1.77% 19.47% 17.72% 29.00% 1.80% 1.77% 2.15% 4.97% 12.46% 1.60% 15.02% 10.70% 0.91% 12.07% 13.72% 16.86% 1.78% 0.98% 1.64% 2.55% 11.96% 1.03% 1.84% 1.74% -0.16% 2.63% 11.75% 11.02% 1.23% -1.14% 1.22% 2.01% 1.37% -5.95% 1.70% 1.44% -5.18% 2.48% 2.56% 2.41% -22.58% -13.95% -4.47% -24.98% 0.72% -18.09% 1.41% 1.11% -6.12% 1.82% 2.23% 1.91% -32.87% -14.53% -10.92% -32.58% 0.06% -18.73% -2.57% 1.11% -7.25% -7.18% 1.44% 1.63% -39.22% -16.20% -16.78% -33.96% Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 9.73% 76.80% 32.23% 10.11% 1.67% 14.55% 14.62% 7.93% 2.06% 71.72% 24.58% 6.22% 1.48% 4.22% 13.52% 1.69% 1.90% 49.29% 18.17% 5.65% 1.32% 4.13% 12.82% 1.07% 0 63% 2 41% 7 00% 1 97% 1 22% 1 69% 2 16% 1 02% Q on Q returns of various indices Past Performance may or may not be sustained in future The Source: World Gold Council; MFI Explorer 0.63% 2.41% 7.00% 1.97% 1.22% 1.69% 2.16% 1.02% -0.54% 2.33% 0.90% 1.48% 1.15% 1.33% 1.39% 0.31% -8.62% 1.39% 0.67% 1.30% 0.91% 0.98% 0.95% -5% -11.85% -3.72% 0.14% 0.67% 0.36% 0.05% 0.83% -7.05% Past Performance may or may not be sustained in future.

The above table and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same should not be construed as an indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a basis for comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. Source: World Gold Council; MFI Explorer ‰ Gold provides an opportunity to enhance portfolio returns over a period and acts as perfect diversifier for one’s investment portfolio ‰ Gold has outperformed in 8 quarters out of 20 quarters with respect to other given indices

Di ifi ti Diversification 5 Year weekly return correlation on key asset ‰ Gold is an ideal portfolio diversifier ‰ Gold has very low/negative correlation with other asset class -0.035 -0.179 -0.435 DJIA YEN DOLLAR INDEX 5 Year weekly return correlation on key asset classes and gold offering diversification benefit to investors 0.179 0.172 0.002 BSE SENSEX BSE 500 S&P 500 ‰ Adding gold to your portfolio may potentially lower overall portfolio risk 0.402 0.329 0.209 S&P GSCI CRUDE OIL NSE S&P CNX NIFTY and aims to preserve wealth 0.425 -1 -0.5 0 0.5 1 EURO Source: Bloomberg, Period ending 31st Dec 2010

G ld fl ti 350 ‰ Keeps purchasing power intact Gold: Hedge against Inflation ‰ Gold over centuries has maintained its value against 200 250 300 350 inflation ‰ It preserves the purchasing power 50 100 150 200 ‰ It preserves the purchasing power and in fact even increases it Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 I fl ti G ld gradually Inflation Gold Source: Bloomberg. Normalized to 100, Gold (USD/OZ)

G ld A l V l til A t ‰ Over 1 3 and 5 year period Gold 40% Gold: A less Volatile Asset ‰ Over 1, 3 and 5 year period Gold has been less volatile than all 30% 40% major equity indices ‰ Gold is less volatile than 10% 20% equity as an asset class and thereby helps to stabilize 0% Gold Sensex BSE 500 BSE 200 BSE 100 1 year 3 year 5 year portfolio returns 1 year 3 year 5 year Source: World Gold Council, Gold=Gold(Rs/oz).

Volatility (annualised) to end of September,2010

Gold A decade of sparkling glitter ‰ Gold continues to breach its high (YOY) since 2001 till date 1600 Gold - A decade of sparkling glitter 1032.7 1226.56 1431.25 1200 1400 ‰ The graph shows the open, close high and low for a ten i d Th fi i th 541 730.4 845.84 600 800 1000 year period. The figure in the graph indicates the high level of gold prices for each year 298.5 354.25 417.75 456.89 541 200 400 600 gold prices for each year Past Performance may or may not be sustained in future. The above table and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly.

The same should not be construed as an indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a basis for 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Bloomberg, Gold (USD/OZ) comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.

Performance ‰ Gold - an “asset class apart” proven as a pure performer Performance 29.52 % 30.00 35.00 ‰ Gold has been a consistent performer and has given over 17% return 17.68% 18.29 % 17.41 % 17.04 % 15.00 20.00 25.00 has given over 17% return across time period for the given time period 5.00 10.00 Past Performance may or may not be sustained in future. The above table and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same should not be construed as an indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a 0.00 10 year 7 years 5 year 3 year 1 year Source : Bloomberg; The above graph shows CAGR performance of Gold (USD/OZ) Data as on 31st Dec 2010 forecast of any returns.

The details may not necessarily provide a basis for comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.

Gold Considered a safe haven asset Event Period Gold Returns(%) Equity Returns (%) Gold – Considered a safe haven asset Subprime Mortgage Crisis October 2007-March 2009 15.74 -59.07* Dotcom Bubble/September 11,2001 terrorist attack March 2000 - October , 2002 14.18 -51.43* Asian financial crisis July 1997- September, 1998 -15.79 -59.06** Asian financial crisis July 1997 September, 1998 15.79 59.06 Bursting of the Japanese stock and real estate bubble December 1989 - April 2003 -17.77 -76.86*** Arab oil embargo January 1973- December 1974 182.24 -38.31^ World War 2 September 1939 - April 1942 -1.66 -37.49^ The Great Depression August 1929- June 1932 0.29 -88.74^ ‰ During uncertain turbulent Source: Bloomberg, *Equity Returns refers to returns of MSCI World Index.

Returns for MSCI Asia Pacific Ex Japan Index * Returns of Nikkei 225 stock average ^Returns of Dow times gold affirmed its position as an insurance for investment portfolios Jones Industrial Average Past Performance may or may not be sustained in future. The above table and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same should not be construed as an indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a basis for comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.

Why buy gold now?

Fundamental Drivers Value @ 1421$/Oz Particulars Tones % bn USD ‰ Total Gold mined till date is valued at around USD 7.2 trillion ‰ Global Gold Holdings Fundamental Drivers Particulars Tones % bn USD Jewellery 83700 51% 3,823 Industrial 19800 12% 904 ‰ Gold consumed in jewellry and industry rarely flow into investment market (~63%) ‰ Official Sector (For eg:central banks) Above ground reserves Investments 29600 18% 1,352 official sector 28900 17% 1,320 ‰ Official Sector (For eg:central banks) are now being the game changers for the demand & supply dynamics – they have become net buyers of gold after being sellers for decades Misc 3600 2% 164 Total 165600 7,564 being sellers for decades ‰ Gold held in investment is only worth USD 1.3 trillion - a small component of global financial asset Under ground reserves 22000 1,005 Total 187600 8,569 Source: World Gold Council, RMF Estimates ‰ Gold availability remains limited and supply increase by only ~1.6% annually

Gold Imports in India: Surprise on the Upside Gold Imports in India: Surprise on the Upside 120 140 160 20000 25000 Tons (RHS) Price (Rs/10 grams) 40 60 80 100 120 5000 10000 15000 I di i ld’ l t ld ti f 15% f l b l ld k t i 2009 20 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 ‰ India is world’s largest gold consumer accounting for 15% of global gold market in 2009 ‰ Imports in India influences gold prices - Spike in Indian gold imports is usually followed by rise in gold prices ‰ Price sensitive Indian investors have been waiting on the sideline for prices to correct since last few year ‰ Hence whenever prices will correct, Indian imports will increase and thereby limit/cap the downside for gold pricesa major bull driver Source: Business Beacon Past Performance may or may not be sustained in future.

The above table d h i ill t ti f th f f G ld th b i f and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same should not be construed as an indication, promise, guarantee or a forecast of any returns. The details may not necessarily provide a basis for comparison with any other investment avenues. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.

Gold View ‰ Strong investment demand in major consumption nations - India and China ¾ Per capital consumption of gold in India and China is much lower than developed nations Gold View ¾ Per capital consumption of gold in India and China is much lower than developed nations ¾ Rising purchasing power of middle class in India and China may lead to higher gold demand ‰ Fundamental weakness in US dollar ¾ Near Zero interest rates, high trade deficit and fear of higher inflation ¾ Gold tends to benefit from depreciating dollar ‰ Fear of Inflation ¾ Bailouts and quantitative easing along with lower interest rate will likely increase the risk ¾ Bailouts and quantitative easing along with lower interest rate will likely increase the risk of inflation ¾ Higher commodity prices leads to cost push inflation ¾ Gold is good hedge against inflation and tends to benefit during higher inflationary environment Source: RMF Estimates

G ld Vi ‰ Sovereign debt concerns ¾ Rising debt levels in western economies increases the risk of sovereign defaults, increase Gold View g g risk aversion and benefits gold ‰ Central banks buying spur ¾ Countries with highest forex reserves have less than 2% of their reserves in gold as compared to many developed nations who have more than 60% of their reserves in gold compared to many developed nations who have more than 60% of their reserves in gold ¾ These central banks need to diversify into gold to safeguard against falling currency value ‰ Increasing importance of portfolio diversification ¾ Limited Supply - Only $7.2 trillion worth of gold mined till date and Less than $ 1.3 trillion pp y y g held in private investment is available for investment ¾ Percentage allocation in Gold is quite small against recommendation of 6 to 10% and increasing in allocation will lead to higher gold prices ‰ Geopolitical uncertainties ‰ Geopolitical uncertainties ¾ Geo political uncertainty increase the safe haven appeal of gold Source: RMF Estimates

Risks to gold rally F t i ti ld ll Risks to gold rally ‰ Recycled gold coming to market at higher price levels may limit Factors impacting gold rally upside ‰ Quick and strong US recovery ‰ High interest rates ‰ Lower inflation ‰ Lower inflation ‰ Optimistic expectation of global growth ‰ New technology

Problems with investing in gold in India Problems with investing in gold in India

1 Purity and Quality 1. Purity and Quality The average purity of the gold sold in the market is 19.43 karat as opposed to 22 karat claimed by most jewellers.

Source: TimesofIndia, June 20 , 2006, March 21, 2008. The Telegraph

2. Storage and Safety Source: TimesofIndia, Dec 13, 2008

3 Trust and faith on Jeweller 3. Trust and faith on Jeweller Source: paperarticles.com/2009, 30 Jan , 2009. TimesofIndia, Aug 30 2008

4 Demat required for gold investment in secure form 4. Demat required for gold investment in secure form ‰ As on October 2010 there are only 1.8 crore demat accounts It is estimated that crore demat accounts. It is estimated that only 40% are active ‰ Gold in one of its purest form is sold in paper form Gold ETFs which require paper form – Gold ETFs which require demat account ‰ Total size of the Gold ETF industry is Rs 3350 crores growing at 92% p a Rs.3350 crores.

growing at 92% p.a mainly to rise in price rise ‰ Facilities like Systemtic investments Plans (SIPs) are not available for Plans (SIPs) are not available for investment in Gold ETFs Source: Hindu Business Line

G ld D l ti C l Gold Devaluation Cycle Buy Gold Coins from Jewellers/ Banks Gold coins reRedesigning of J ll d t Sale of Jewellery ( 10 Gms Gold Price+ Vat+ Making Charges) molded to Jewellery Jewellery due to fashion changes Sale of Jewellery due to monetary needs ‰ At every stage cycle you incur a cost for making charge and it may lead to loss in the quantity and purity of gold leading to devaluation to the total gold holdings

Introducing Reliance Gold Savings Fund First gold fund of fund in India

P iti i f th F d ‰ Introducing the first fund of fund in India which enables you to reap the returns of Positioning of the Fund gold as an asset class in a paper form without the need of a demat account ‰ This fund would facilitate you to accumulate gold returns from a long term perspective through lump sum and systematic regular investments ‰ The fund seeks to provide returns that closely correspond to the returns provided by Reliance Gold Exchange Traded Fund, which in turn invest in physical gold ‰ It aims to give investors the opportunity to participate in the bullion market in a relatively t ff ti d i t cost effective and convenient way

  • Benefits of Reliance Gold Savings Fund
  • Subscription and redemption available through Open Door for Non Benefits of Reliance Gold Savings Fund Subsc p o a d ede p o a a ab e oug physical mode
  • No need to open demat account Open Door for Non Demat a/c holders
  • The fund has add on facilities like Systematic Transfer Plan/ Systematic Withdrawal Plan etc. Small regular investments as low as Rs 100 per month. Systematic Investing
  • Direct purchase and sale of the units at the AMC Liquidity
  • Uniform purchase and sale price at the NAV Liquidity

SIP i G ld A d t lth ti Systematic Investing SIP in GoldAn edge to wealth creation SIP Return as on Dec 30, 2010 Period 1 Year 3 Year 5 Year 10 Years Nearly 84 modern SIP Start Date 04/01/2010 02/01/2008 03/01/2006 02/01/2001 Gold Price (Rs/Gm) (As on 30/12/2010) 2031.42 2031.42 2031.42 2031.42 Total No. of gms accumulated 34 124 258 839 tola in 10 years Total Amount Invested in Rs. (Monthly SIP of Rs.5000) 60,000 1. 80 lacs 3 lac 6 lacs Market Value if invested in Gold in Rs. 68,590 2.52 lacs 5.24 lacs 17.03 lacs Return on SIP in Gold 27.92% 23.28% 22.51% 20.16% ‰ A long term disciplined investment technique which allows you to accumulate gold in small amounts regularly from a long term perspective ‰ Reliance Gold Savings Fund endeavors to inculcate this habit to your investments to enable you to accumulate the returns of gold Past Performance may or may not be sustained in future.

Assumptions : Returns on SIP of Gold are annualized and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on “Excel” spreadsheet function known as XIRR. It is assumed that a SIP of Rs. 5000/- each executed on 2nd of every month has been taken into consideration including the first installment. Disclaimers The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. This illustration should not be construed as a promise, guarantee on or a forecast of any minimum returns.

The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.

Product Features ‰ Investment Objective : The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance Gold Exchange Traded Product Features Fund ‰ Benchmark: The Scheme’s performance will be benchmarked against the price of physical gold. ‰ Fund Manager : Hiren Chandaria ‰ Entry Load: Nil * * In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase / additional purchase / switch-in accepted by the Fund with effect from August 01, 2009.

Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund with effect from August 01, 2009 ‰ Exit Load: ¾ 2%- If redeemed or switched out on or before completion of 1 year from the date of allotment of units ¾ Nil - If redeemed or switched out after the completion of 1 year from the date of allotment of units

P d t F t Asset Allocation Pattern I t t I di ti t ll ti Ri k P fil Product Features ‰ Asset Allocation Instruments Indicative asset allocation (% of total assets) Risk Profile Minimum Maximum Units of Reliance Gold Exchange Traded 95 100 Medium to High g Fund 95 100 Medium to High Reverse repo and /or CBLO and/or shortterm fixed deposits and/or Schemes which invest predominantly in the money market 0 5 Low to Medium p y y securities or Liquid Schemes* *The Fund Manager may invest in Liquid Schemes of Reliance Mutual Fund. However, the Fund Manager may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities The deviation from the underlying ETF may occur mainly on account of the receipt of cash flows which on an average takes 5 days given the existing operational procedure

P d t F t Mi i A li ti A t R 5 000 d i lti l f R 1 th ft Product Features ‰ Minimum Application Amount: Rs. 5,000 and in multiples of Re. 1 thereafter ‰ Additional Purchase Amount : Rs 1000 (plus in the multiple of Re.1) ‰ Minimum Purchase Amount through SIP: Minimum Purchase Amount through SIP: ¾ Rs.100/- per month and in multiples of Re. 1/- thereafter for minimum 60 months ¾ Rs.500/- per month and in multiples of Re. 1/- thereafter for minimum 12 months ¾ Rs.1000/- per month and in multiples of Re. 1/- thereafter for minimum 6 months p p ¾ Rs.500/- per quarter and in multiples of Re. 1/- thereafter for minimum 12 quarters ¾ Rs.1500/- per quarter and in multiples of Re.

1/- thereafter for minimum 4 quarters

T ti Taxation Benefits Type of Taxation Reliance Gold Savings Fund Gold ETF Jewellers Banks Taxation Savings Fund Wealth Tax Nil Nil Applicable Applicable Sh li bl b f 1 A li bl b f A li bl b f 3 A li bl b f Short Term Capital gains Tax Applicable before 1 year Applicable before 1 year Applicable before 3 years Applicable before 3 years Long Term capital gains tax Applicable after 1 year Applicable after 1 year Applicable after 3 years Applicable after 3 years The fund avails similar taxation as applicable to debt mutual fund schemes ‰ Long Term Capital Gain Tax of 10 % or 20 % with indexation will be applicable ‰ Short Term Capital Gains applicable as per tax slab for the investor The tax benefits are as per the current Income Tax laws & rules and any other law for the time being in force.

Please refer to Statement of Additional Information for more details. Readers are advised to seek independent professional advice and consult their tax advisors and arrive at an informed investment decision before making any investments

S Summary ‰ Reliance Gold Savings Fund provides an easy and a convenient way for at least 10% allocation as Portfolio Diversification at least 10% allocation as Portfolio Diversification ‰ It endeavors to inculcate a regular savings habit to accumulate gold in small amounts through MICRO Systematic Investment Plan and Systematic Investment Plan ‰ Opens doors for non – demat account holders as it provides the facility to invest through the online medium and through physical application mode invest through the online medium and through physical application mode ‰ It enables you to avail long term taxation benefits from 1 year unlike physical gold wherein long term taxation can be availed after 3 years ‰ It relieves you from worrying about the purity of physical gold and storage cost

For all the Gold Lovers in India Reliance Gold Savings Fund An Open Ended Fund of Fund Scheme Benefits Wahi, Tension Nahi

For all the Gold Lovers in India Reliance Gold Savings Fund An Open Ended Fund of Fund Scheme Benefits Wahi, Tension Nahi

For all the Gold Lovers in India Reliance Gold Savings Fund An Open Ended Fund of Fund Scheme An Open Ended Fund of Fund Scheme Benefits Wahi, Tension Nahi

For all the Gold Lovers in India R li G ld S i F d Reliance Gold Savings Fund An Open Ended Fund of Fund Scheme Benefits Wahi, Tension Nahi

Di l i ‰ The views expressed herein constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. This information is meant for Disclaimer general reading purposes only and is not meant to serve as a professional guide for the readers. Certain factual and statistical (both historical and projected) industry and market data and other information was obtained by RCAM from independent, third-party sources that it deems to be reliable, some of which have been cited above. However, RCAM has not independently verified any of such data or other information, or the reasonableness of the assumptions upon which such data and other data or other information, or the reasonableness of the assumptions upon which such data and other information was based, and there can be no assurance as to the accuracy of such data and other information.

Further, many of the statements and assertions contained in these materials reflect the belief of RCAM, which belief may be based in whole or in part on such data and other information. ‰ The Sponsor, the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable.

This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice, verify the contents and arrive at an informed investment decision before making any investments.

Di l i ‰ None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, Disclaimer punitive or exemplary damages, including lost profits arising in any way from the information contained in this material. ‰ The Sponsor, the Investment Manager, the Trustee, any of their respective directors, employees including the fund managers, affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time have long or short positions in and buy or sell the issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic sectors mentioned herein.

Reliance Gold Savings Fund (An Open Ended Fund of Fund Scheme): The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance Gold Exchange Traded Fund (RGETF). Asset allocation Pattern: Units of RGETF – 95 to 100%, Reverse g ( ) repo and /or CBLO and/or short-term fixed deposits and/or Schemes which invest predominantly in the money market securities or Liquid Schemes* - 0 to 5%. *The Fund Manager may invest in Liquid Schemes of Reliance Mutual Fund. However, the Fund Manager may invest in any other scheme of a mutual fund registered with SEBI, which invest predominantly in the money market securities.

Load Structure: (for investments made during NFO and Ongoing offer period) Entry Load Nil Exit Load Structure: (for investments made during NFO and Ongoing offer period) Entry Load - Nil. Exit Load - 2%- If redeemed or switched out on or before completion of 1 year from the date of allotment of units, Nil thereafter.

Disclaimer ‰ Terms of issue and mode of sale and redemption of units: The units are available at Rs. 10/- per unit during NFO & thereafter at applicable NAV based prices. The Scheme will offer for Subscription/ Switch-in and Redemption / Switch-out of Units on every Business Day on an ongoing basis, within five business days of Disclaimer Redemption / Switch out of Units on every Business Day on an ongoing basis, within five business days of allotment. The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 Business Days from the date of redemption or repurchase.

Investor benefits and general services offered: The Scheme offers Systematic Investment Plan, Auto Switch facility and Online Transactions during the NFO period. The NAV of Scheme shall be published on a daily basis by the Mutual Fund at least in two daily newspapers and will also uploaded on the AMFI site www amfiindia com and Reliance Mutual Fund site i e will also uploaded on the AMFI site www.amfiindia.com and Reliance Mutual Fund site i.e. www.reliancemutual.com.

Reliance Gold Exchange Traded Fund is an open-ended Gold Exchange Traded Fund that tracks the domestic prices of gold through investments in physical Gold.) The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold (and Gold related securities as permitted by Regulators from time to time) However the performance of the (and Gold related securities as permitted by Regulators from time to time). However, the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors.

Asset Allocation Pattern: Physical Gold or Gold Related Instruments as permitted by regulators from time to time - 90 to 100%, Money Market instruments, Bonds, Debentures, Government Securities including T-Bills, Securitised Debt & other debt securities as permitted by regulators from time to time – 0 to 10%. Load Structure – Entry L d & E it L d Nil T f I A th it f th h li t d th E h b t Load & Exit Load – Nil. Terms of Issue - As the units of the scheme are listed on the Exchange, subsequent buying or selling (trading) by Unit holders can be made from the secondary market on all trading days.

The minimum number of Units that can be bought or sold on the exchange is 1 (one) unit.

Disclaimer Disclaim ‰ Statutory Details: Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882. Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Company Limited. Investment Manager: Reliance Capital Asset Management Limited (Registered Office of Trustee & Investment Manager: “Reliance House” Nr. Mardia Pla a Off C G Road Ahmedabad 380 006) The Sponsor the Tr stee and the In estment Manager are incorporated Disclaimer Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006). The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus.

Risk Factors: Mutual Funds and securities investments are subject to market risks, and there is no assurance or guarantee that the objectives of the Scheme will be achieved As with any investment in securities the NAV of the Units issued under the the objectives of the Scheme 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 the factors and forces affecting the securities market. Reliance Gold Savings Fund and Reliance Gold Exchange Traded Fund are only the names of the Schemes and do not in any manner indicates either the quality of the Scheme; its future prospects or returns.

Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. The Mutual Fund is not assuring that it will make periodical dividend distributions, though it has every intention of doing so. All dividend distributions are subject to the availability of distributable surplus in the Scheme. The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. Being a Fund of Fund Scheme, it may be noted that the investors are bearing the risk and the recurring expenses of RGETF also.

For detailed risk factors, please refer to the Scheme Information Document & Key Information Memorandum, which is available at all the DISC, Distributors and www.reliancemutual.com. Investors can also call at our call centre 1800-300-11111 (toll free) for more details. Please read the Scheme Information D t d St t t f Additi l I f ti f ll b f i ti Document and Statement of Additional Information carefully before investing.

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