Reliance Mutual Fund presents - First gold fund of fund in India An Open Ended Fund of Fund Scheme
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Reliance Mutual Fund
presents
An Open Ended Fund of Fund Scheme
First gold fund of fund in India
Confidential Slide
India’s First Fund with SIP in gold NFO Opening Date : 14 February,2011 NFO Closing Date : 28 February,2011 Confidential Slide 2
I d
Index
Index
Where do Indians invest?
A journey through India’s fascination for Gold
Why do we love gold so much? – It has fundamental strength
Why Buy Gold now?
Problems with investing in gold in India
Introducing
g Reliance Gold Savings
g Fund
Takeaways
Where do Indians invest?
Wh
Where d l save th
do people i money?
their ?
Real Estate,, 5 Chit fund/NBFC,
fund/NBFC 9.4
94
Equity market, 1.1
Gold, 5.8
Mutual Fund, 1.2
Life insurance, 32.8
Banks,, 44.9
Postal Savings, 11.6
Nearlyy 5 times more household savings
g is invested in Gold
than in Equities or Mutual Funds
Source: Invest India Incomes and Savings Survey 2007C
Cross market
k t portfolio
tf li composition
iti
Mutual Fund Gold
Banks 2.6 8.0
Post 2.9 11.7
Life insurance 3.3 9.3
M t l Fund
Mutual F d 100 21.6
21 6
Equity market 32.1 24.2
Real Estate 3.4 12.2
Informal sector 07
0.7 88
8.8
Gold 4.4 100
Market p
penetration in Gold is less byy Capital
p market investors ((MFs and equity)
q y)
Only 21.6% MF investors invest in Gold & only 4.4% Gold investors invest in MFs
Source: Invest India Incomes and Savings Survey 2007A jjourneyy through
g India’s
fascination for GoldIndians Passion for Gold starts before birth – It is an
integral part of our Culture
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
child’s security, exigency & marriageSi ifi
Significance off Jewellery
J ll i the
in th Life
Lif off Women
W i India
in I di
Gold possession is embedded in the
customs and the traditions that carry
significant importance to women
Ornaments such as mangalsutra,
Ornaments, mangalsutra nath
(nose ring) and toe rings, quintessential
for married Indian women
J
Jewellery
ll gifted
ift d to
t women att the
th time
ti off
her marriage is called 'stridhan' i.e.
wealth of women, which in short is
symbol of wealth, power and femininityG ld has
Gold h Traditional
T diti l Values
V l
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
portfolio diversification
Indians consider occasion as an
apt time to buy, wear and
celebrate goldI di ’ Gold
India’s G ld Offering
Off i to t God
G d
Tirumala is the richest
religious shrine in the world
The Golden Temple
with an annual revenue of
Rs.1,200 crore and gold main dome is gilded
reserves of almost 250kg that with 100 kg of pure
are made up of small gold
ornaments thrown in the
Source:
hundi. On an average, the http://www.amritsar.com/
temple receives about 2kg of harmandirsahib.shtml
gold in the hundi every day
Source: Telegraph India (nov 2010),
Shirdi’s Sai Baba's Gold Lalbuag cha Raja
Crown Worth Rs.12.5 collected a record
Lakhs. He resides on a Gold offerings from
throne of gold weighing d
devotees
t i 2010
in
94 kgs
Source: Mumbai Mirror, Sept ‘10
Source: liveindia.com, Dec ‘07C
Commercial
i l Usage
U off Gold
G ld
The undying fascination towards the yellow
metal is evident in its use currently for
making watches, medals, shoes, cufflinks, tie
pins, pens cars, saries, buttons and so on
Collectingg watches is one of the most
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 ResearchG ld is
Gold i stored
t d allll over the
th world…
ld
Gold was not selected arbitrarily by
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
desirable monetary medium
Gold is stored all over the world in
various formsG ld has
Gold h Edible
Edibl and
d Medicinal
M di i l Values
V l
Ayurveda gifted us Suvarnaprashan to
improve immunity of Child.
Child ‘Suvarna’
Suvarna
means ‘Gold’ & ‘Prashan’ means ‘to lick’
Lasers incorporating gold coatings are
makingg dramatic progress
g in the
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
chocolates, wine, fruits etc
Source: RCAM ResearchG ld is
Gold i more than
th an Asset
A t – It’s
It’ a Standard
St d d
Great achievements are often rewarded
with gold – Olympic Gold
Best periods of Prosperity of Civilizations
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
footballerWhy
y do we love g
gold so much? – It has
fundamental strengthG ld - A Parallel
Gold P ll l Economy
E i India
in I di
India runs a parallel Gold economy (gold economy vs. real economy)
• India’s gold holdings accounts for 11% of • India’s GDP accounts for 2.1%^ of global
above-ground
b d stock
t k off gold
ld in
i the
th World
W ld GDP ini nominal
i l dollars
d ll
• Household bank deposits and equity
• Valued at $800bn, our gold holdings
holdings valued at $625bn and 315bn,
valued at nearly 50% of GDP
respectively
ti l
• India's share* in global gold demand is
• India's economy is ~1/4th^ the size that of
1.5X that of China, the second largest gold
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 Parallel
Gold P ll l Economy
E i India
in I di
Indian household’s fetish for gold is:
S
Structural:- Average Annual 10 year growth rates in India
(2000-2009)(%)
Considered a symbol of security and sign
20.00%
of prosperity
15.00%
Recognized as a form of a tradable liquid
asset 10.00%
A hedge against – inflation, rupee 5.00%
depreciation, and social insecurity
0.00%
Lack of basic banking facilities, especially Population
( mn)
Inflation
(%)
Real GDP
(%)
Gold
demand
Gold Price Gold
(Rs/oz) imports (Rs
in backward areas (Rs bn) bn)
Cyclical:-
Lo real interest rates
Low
High market/economic uncertainty Source: Morgan Stanley, World Gold Council, CMIE, RMF estimatesAsset 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 Q on Q returns of various indices
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%
0.63% 2 41%
2.41% 7 00%
7.00% 1 97%
1.97% 1 22%
1.22% 1 69%
1.69% 2 16%
2.16% 1 02%
1.02% Past Performance may or may not be sustained in future. future The
above table and graph gives an illustration of the performance of
-0.54% 2.33% 0.90% 1.48% 1.15% 1.33% 1.39% 0.31% Gold on the basis of historical data, if invested directly. The same
should not be construed as an indication, promise, guarantee or a
-8.62% 1.39% 0.67% 1.30% 0.91% 0.98% 0.95% -5% forecast of any returns. The details may not necessarily provide a
basis for comparison with any other investment avenues. Readers
-11.85% -3.72% 0.14% 0.67% 0.36% 0.05% 0.83% -7.05% 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 indicesDi
Diversification
ifi ti
Gold is an ideal portfolio diversifier
5 Year weekly return correlation on key asset
classes and gold Gold has very low/negative
-0.435 DOLLAR INDEX
-0.179 YEN correlation with other asset class
-0.035 DJIA
0.002 S&P 500
offering diversification benefit
0.172 BSE 500
to investors
0.179 BSE SENSEX
0.209 NSE S&P CNX NIFTY Adding gold to your portfolio may
0.329 CRUDE OIL
potentially lower overall portfolio risk
0.402 S&P GSCI
0.425 EURO and aims to preserve wealth
-1 -0.5 0 0.5 1 Source: Bloomberg, Period ending 31st Dec 2010G ld Hedge
Gold: H d against
i t Inflation
I fl ti
Keeps purchasing power intact
350
300 Gold over centuries has
250
200
maintained its value against
150
inflation
100
50
It preserves the purchasing power
0
Apr-05
Apr-06
Apr-07
Apr-08
Apr-09
Apr-10
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Aug-05
Aug-06
Aug-07
Aug-08
Aug-09
Aug-10
and in fact even increases it
I fl ti
Inflation G ld
Gold
gradually
Source: Bloomberg. Normalized to 100, Gold (USD/OZ)G ld A less
Gold: l V l til Asset
Volatile A t
40% Over 1,
1 3 and 5 year period Gold
30% has been less volatile than all
20% major equity indices
10%
Gold is less volatile than
equity as an asset class and
0%
Gold Sensex BSE 500 BSE 200 BSE 100
1 year 3 year 5 year
thereby helps to stabilize
Source: World Gold Council, Gold=Gold(Rs/oz). Volatility (annualised) to portfolio returns
end of September,2010Gold - A decade of sparkling glitter
Gold continues to breach its high (YOY) since 2001 till date
1600
1431.25
The graph shows the
1400
1226.56 open, close high and low for a ten
1200
1032.7
year period.
i d The
Th figure
fi i the
in th
1000
845.84
730.4
graph indicates the high level of
800
600 541 gold prices for each year
456.89
417.75
354.25 Past Performance may or may not be sustained in future.
400 298.5 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
200 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
0 at an informed investment decision before making any
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 investments.
Source: Bloomberg, Gold (USD/OZ)Performance
Gold - an “asset class apart” proven as a pure performer
35.00 Gold has been a
30.00
29.52 % consistent performer and
25.00 has given over 17% return
18.29 % 17.41 %
20.00
17.68% 17.04 %
across time period for the
15.00 given time period
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
5.00 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
0.00 are advised to seek independent professional advice and arrive at
an informed investment decision before making any investments.
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 2010Gold – Considered a safe haven asset
Event Period Gold Returns(%) Equity Returns (%)
Subprime Mortgage Crisis October 2007-March 2009 15.74 -59.07*
Dotcom Bubble/September 11,2001
March 2000 - October , 2002 14.18 -51.43*
terrorist attack
Asian financial crisis July 1997-
1997 September, 1998 -15.79
15.79 -59.06**
59.06
Bursting of the Japanese stock and
December 1989 - April 2003 -17.77 -76.86***
real estate bubble
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^
Source: Bloomberg, *Equity Returns refers to returns of MSCI World Index. ** Returns for
During uncertain turbulent MSCI Asia Pacific Ex Japan Index, *** Returns of Nikkei 225 stock average ^Returns of Dow
J
Jones I d t i l Average
Industrial A Past Performance may or may not be sustained in future. The above table and
times gold affirmed its graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same
position as an insurance for 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
investment portfolios independent professional advice and arrive at an informed investment decision before making any investments.Why buy gold now?
Fundamental Drivers
Global Gold Holdings Total Gold mined till date is valued at
Value @ 1421$/Oz
around USD 7.2 trillion
Particulars Tones % bn USD
Gold consumed in jewellry and industry
Jewellery 83700 51% 3,823 rarely flow into investment market
(~63%)
Industrial 19800 12% 904 Official Sector (For eg:central banks)
Above are now being the game changers for
Investments 29600 18% 1,352
ground the demand & supply dynamics – they
official
reserves have become net buyers of gold after
sector 28900 17% 1,320
being sellers for decades
Misc 3600 2% 164 Gold held in investment is only worth
USD 1.3 trillion - a small component of
Total 165600 7,564
global financial asset
Under ground reserves 22000 1,005 Gold availability remains limited and
supply increase by only ~1.6% annually
Total 187600 8,569 Source: World Gold Council, RMF EstimatesGold Imports in India: Surprise on the Upside
25000 160
Tons (RHS) Price (Rs/10 grams) 140
20000
120
15000 100
80
10000 60
40
5000
20
0 0
Jan-06
Sep-06
Jan-07
Sep-07
Jan-08
Sep-08
Jan-09
Sep-09
Jan-10
Sep-10
Nov-05
Nov-06
Nov-07
Nov-08
Nov-09
Mar-06
Jul-06
Mar-07
Jul-07
Mar-08
Jul-08
Mar-09
Jul-09
Mar-10
Jul-10
May-06
May-07
May-08
May-09
May-10
IIndia
di is
i world’s
ld’ largest
l t gold
ld consumer accounting
ti for
f 15% off global
l b l gold
ld market
k t in
i 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 prices- a major bull driver Source: Business Beacon
Past Performance may or may not be sustained in future. The above table
andd graph h gives
i an illustration
ill t ti off the
th performance
f off Gold
G ld on the
th basis
b i off
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
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
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 EstimatesG ld View
Gold Vi
Sovereign debt concerns
¾ Risingg debt levels in western economies increases the risk of sovereign g defaults, increase
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
¾ These central banks need to diversify into gold to safeguard against falling currency value
Increasing importance of portfolio diversification
¾ Limited Supply
pp y - Onlyy $7.2 trillion worth of g
gold mined till date and Less than $ 1.3 trillion
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
¾ Geo political uncertainty increase the safe haven appeal of gold
Source: RMF EstimatesRisks
F t to impacting
Factors igold rally
ti gold
ld rally
ll
Recycled gold coming to market at higher price levels may limit
upside
Quick and strong US recovery
High interest rates
Lower inflation
Optimistic expectation of global growth
New technologyProblems with investing in gold in India
1 Purity and Quality
1.
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
Telegraph2. Storage and Safety Source: TimesofIndia, Dec 13, 2008
3 Trust and faith on Jeweller 3. Source: paperarticles.com/2009, 30 Jan , 2009. TimesofIndia, Aug 30 2008
4 Demat required for gold investment in secure form
4.
As on October 2010 there are only 1.8
crore demat accounts.
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
demat account
Total size of the Gold ETF industry is
Rs 3350 crores.
Rs.3350 crores growing at 92% p.a
pa
mainly to rise in price rise
Facilities like Systemtic investments
Plans (SIPs) are not available for
investment in Gold ETFs Source: Hindu Business LineG ld Devaluation
Gold D l ti Cycle
C l
Buy Gold Coins
from Jewellers/
Gold coins re- Redesigning of
Banks Sale of Jewellery
molded to J
Jewellery
ll due
d tot
( 10 Gms Gold due to monetary
Jewellery fashion changes
Price+ Vat+ needs
Making Charges)
At everyy stage
g cycle
y yyou incur a cost for making
g charge
g and it may y lead to loss
in the quantity and purity of gold leading to devaluation to the total gold holdingsIntroducing Reliance Gold Savings Fund
First gold fund of fund in IndiaP iti i off the
Positioning th Fund
F d
Introducing the first fund of fund in India which enables you to reap the returns of
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
costt effective
ff ti andd convenient
i t wayBenefits of Reliance Gold Savings Fund
• Subsc p o a
Subscription d redemption
and ede p o a a ab e through
available oug
Open Door for Non physical mode
Demat a/c holders • No need to open demat account
• The fund has add on facilities like Systematic
Systematic Transfer Plan/ Systematic Withdrawal Plan etc.
Investing Small regular investments as low as Rs 100 per
month.
• Direct purchase and sale of the units at the AMC
Liquidity
• Uniform purchase and sale price at the NAVSIP in
i Gold-
G ldInvesting
Systematic A edge
An d tot wealth
lth creation
ti
SIP Return as on Dec 30, 2010 Nearly 84
Period 1 Year 3 Year 5 Year 10 Years modern
tola in 10
SIP Start Date 04/01/2010 02/01/2008 03/01/2006 02/01/2001 years
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
Total Amount Invested in Rs.
60,000 1. 80 lacs 3 lac 6 lacs
(Monthly SIP of Rs.5000)
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 closelyy correspond
p to returns p
provided byy Reliance Gold Exchange
g Traded
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
unitsP d Allocation
Product
Asset t Features
F t Pattern
Asset Allocation
I t
Instruments
t IIndicative
di ti assett allocation
ll ti Ri k Profile
Risk P fil
(% of total assets)
Minimum Maximum
Units of Reliance Gold Exchange
g Traded 95 100 Medium to High
Fund
Reverse repo and /or CBLO and/or short- 0 5 Low to Medium
term fixed deposits and/or Schemes which
invest ppredominantlyy in the money
y market
securities or Liquid Schemes*
*The Fund Manager may invest in Liquid Schemes of Reliance Mutual Fund. However, the Fund
g may
Manager y invest in anyy other scheme of a mutual fund registered
g 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 procedureP d t Features
Product F t
Mi i
Minimum A li ti
Application A
Amount:
t Rs.
R 5,000
5 000 and
d in
i multiples
lti l off Re.
R 1 thereafter
th ft
Additional Purchase Amount : Rs 1000 (plus in the multiple of Re.1)
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/- p
per month and in multiples
p of Re. 1/- thereafter for minimum 6 months
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 quartersT
Taxation
ti Benefits
Taxation
Reliance Gold
Type of Taxation Gold ETF Jewellers Banks
Savings Fund
Wealth Tax Nil Nil Applicable Applicable
Short T
Sh Term Capital
C i l Applicable
A li bl b before
f 1 Applicable
A li bl b before
f A li bl b
Applicable before
f 3 Applicable
A li bl b before
f
gains Tax year 1 year years 3 years
Long Term capital Applicable after 1 Applicable after 1 Applicable after 3 Applicable after 3
gains tax year year years 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
investmentsSummary
Reliance Gold Savings Fund provides an easy and a convenient way for
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
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
costFor all the Gold Lovers in India
Reliance Gold Savings Fund
An Open Ended Fund of Fund Scheme
Benefits Wahi, Tension NahiFor all the Gold Lovers in India
Reliance Gold Savings Fund
An Open Ended Fund of Fund Scheme
Benefits Wahi, Tension NahiFor all the Gold Lovers in India
Reliance Gold Savings Fund
An Open Ended Fund of Fund Scheme
Benefits Wahi, Tension NahiFor all the Gold Lovers in India
R li
Reliance G ld S
Gold Savings
i F d
Fund
An Open Ended Fund of Fund Scheme
Benefits Wahi, Tension NahiDi l i
Disclaimer
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
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
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
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
Disclaimer
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,
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,
time have long or short positions in,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 g Traded Fund ((RGETF). ) Asset allocation Pattern: Units of RGETF – 95 to 100%, Reverse
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. 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
Switch-out
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
www amfiindia com and Reliance Mutual Fund site i.e. ie
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).
time) However,
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 & Exit
Load E it Load
L d – Nil.
Nil Terms
T off Issue
I - As
A the
th units
it off the
th scheme
h are listed
li t d on the
th Exchange,
E h subsequent
b t
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 Plaza,
Pla a Off.
Off C.G.
C G Road,
Road Ahmedabad 380 006). 006) The Sponsor,
Sponsor the Trustee
Tr stee and the Investment
In estment 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.
achieved As with any investment in securities,
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
g it has everyy intention of doingg so. All dividend distributions are subject
j to the availabilityy of distributable surplus
p 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
Document t and
d Statement
St t t off Additional
Additi l Information
I f ti carefully
f ll before
b f i
investing.
tiThank you
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