Reliance gold saving fund presentationPresentation Transcript
Reliance Mutual Fund presents An Open Ended Fund of Fund Scheme First gold fund of fund in IndiaConfidential Slide
India’s First Fund with SIP in goldNFO Opening Date : 14 February,2011NFO Closing Date : 28 February,2011Confidential Slide 2
Index I dIndex 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 Reliance Gold Savings Fund g g Takeaways
Where do Indians invest?
WhWhere d people save th i money? do l their ? Real Estate, 5 , Chit fund/NBFC, 9.4 fund/NBFC 9 4 Equity market, 1.1 Gold, 5.8 Mutual Fund, 1.2 Life insurance, 32.8 , Banks, 44.9 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
Cross market portfolio compositionC k t tf li iti Mutual Fund Gold Banks 2.6 8.0 Post 2.9 11.7 Life insurance 3.3 9.3 Mutual F d M t l Fund 100 21.6 21 6 Equity market 32.1 24.2 Real Estate 3.4 12.2 Informal sector 0.7 07 8.8 88 Gold 4.4 100 Market penetration in Gold is less by Capital market investors (MFs and equity) p y p ( 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 2007
A journey through India’s j y g fascination for Gold
Indians Passion for Gold starts before birth – It is anintegral 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 & marriage
Significance of JSi ifi f Jewellery i th Lif of W ll in the Life f Women i I di in India Gold possession is embedded in the customs and the traditions that carry significant importance to women Ornaments, Ornaments such as mangalsutra nath mangalsutra, (nose ring) and toe rings, quintessential for married Indian women Jewellery gifted t women at th ti J ll ift d to t the time of f her marriage is called stridhan i.e. wealth of women, which in short is symbol of wealth, power and femininity
Gold has Traditional V lG ld h T diti l ValuesIt is believed that buying &wearing new gold jewellery onAkshaya Tritiya Gudi Padwa &Dhanteras, brings prosperity &success to an individual & his familyThe festival redefines Gold in allits facets from jewellery adornment toportfolio diversificationIndians consider occasion as anapt time to buy, wear andcelebrate gold
India’s Gold Offering to God I di ’ G ld Off i t 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 daySource: Telegraph India (nov 2010), Shirdi’s Sai Babas Gold Lalbuag cha Raja Crown Worth Rs.12.5 collected a record Lakhs. He resides on a Gold offerings from throne of gold weighing devotees i 2010 d t in 94 kgs Source: liveindia.com, Dec ‘07
Commercial UC i l Usage of G ld f Gold 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 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
Gold is t d llG ld i stored all over th world… the 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 forms
Gold has Edible d Medicinal ValuesG ld h Edibl and M di i l V l Ayurveda gifted us Suvarnaprashan to improve immunity of Child ‘Suvarna’ Child. 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 Research
Gold isG ld i more th an A than Asset – It’ a St d d t It’s Standard 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 footballer
Why do we love g y gold so much? – It has fundamental strength
GoldG ld - A P ll l E Parallel Economy i I di in India 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 stock of gold i th W ld b d t k f ld in the World GDP i nominal d ll in i l dollars • 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 • Indias share* in global gold demand is • Indias 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.
GoldG ld - A P ll l E Parallel Economy i I di in IndiaIndian household’s fetish for gold is: Structural:- S 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:- Low Lo real interest rates High market/economic uncertainty Source: Morgan Stanley, World Gold Council, CMIE, RMF estimates
Asset AllocationAsset 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% 0 99% 1.71% % 17.39% 39% 11.86% 86% 1.77% % 19.47% 9 % 17.72% % 29.00% 9 00% 1.80% 80% 1.77% % 2.15% 5% 4.97% 9 % 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% 18.73% -2.57% 2.57% 1.11% -7.25% 7.25% -7.18% 7.18% 1.44% 1.63% -39.22% 39.22% -16.20% 16.20% -16.78% 16.78% -33.96% 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% Past Performance may or may not be sustained in future The future. 0.63% 2.41% 7.00% 1.97% 1.22% 1.69% 2.16% 1.02% above table and graph gives an illustration of the performance of Gold on the basis of historical data, if invested directly. The same -0.54% 2.33% 0.90% 1.48% 1.15% 1.33% 1.39% 0.31% should not be construed as an indication, promise, guarantee or a -8.62% 1.39% 0.67% 1.30% 0.95% forecast of any returns. The details may not necessarily provide a 0.91% 0.98% -5% 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 Returns of Gold has been the best on 8 quarters out of the last 20 quarters
DiversificationDi 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 2010
Gold: HedgeG ld H d against I fl ti i t InflationKeeps purchasing power intact350300 Gold over centuries has250200 maintained its value against150 inflation100 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 Inflation I fl ti Gold G ld graduallySource: Bloomberg. Normalized to 100, Gold (USD/OZ)
Gold: less V l til AG ld A l Volatile Asset t40% Over 1 3 and 5 year period Gold 1,30% has been less volatile than all20% major equity indices10% 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,2010
Gold - A decade of sparkling glitter Gold continues to breach its high (YOY) since 2001 till date1600 1431.25 The graph shows the1400 1226.56 open, close high and low for a ten1200 1032.7 year period. Th fi i d The figure i th in the1000 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 performer35.00 Gold has been a30.00 29.52 % consistent performer and25.00 has given over 17% return 18.29 % 17.41 %20.00 17.68% 17.04 % across time period for the15.00 given time period10.00 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 2010
Gold – 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- September, 1998 1997 -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 Jones I d t i l A J Industrial Average 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 officialreserves 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 assetUnder 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 Estimates
Gold 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 India is I di i world’s l ld’ largest gold consumer accounting f 15% of global gold market i 2009 t ld ti for f l b l ld k t in 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 and graph gives an ill t ti d h i illustration of th performance of G ld on th b i of f the f f Gold the basis f 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 Per capital consumption of gold in India and China is much lower than developed nations Rising purchasing power of middle class in India and China may lead to higher gold demand Fundamental weakness in US dollar Near Zero interest rates, high trade deficit and fear of higher inflation Gold tends to benefit from depreciating dollar Fear of Inflation Bailouts and quantitative easing along with lower interest rate will likely increase the risk of inflation Higher commodity prices leads to cost push inflation Gold is good hedge against inflation and tends to benefit during higher inflationary environment Source: RMF Estimates
Gold ViewG ld Vi Sovereign debt concerns Rising debt levels in western economies increases the risk of sovereign defaults, increase g g risk aversion and benefits gold Central banks buying spur 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 These central banks need to diversify into gold to safeguard against falling currency value Increasing importance of portfolio diversification 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 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 Geo political uncertainty increase the safe haven appeal of gold Source: RMF Estimates
Risks to igold rally gold rallyFactors impacting ld llF t ti 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 technology
Problems with investing in gold in India
1.1 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 SafetySource: TimesofIndia, Dec 13, 2008
3.3 Trust and faith on JewellerSource: paperarticles.com/2009, 30 Jan , 2009. TimesofIndia, Aug 30 2008
4.4 Demat required for gold investment in secure form As on October 2010 there are only 1.8 crore demat accounts It is estimated that accounts. 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 p.a mainly to rise in price rise Facilities like Systemtic investments Plans (SIPs) are not available for investment in Gold ETFs Source: Hindu Business Line
Gold Devaluation C lG ld D l ti CycleBuy Gold Coinsfrom Jewellers/ Gold coins re- Redesigning of Banks Sale of Jewellery molded to Jewellery due to J ll d t ( 10 Gms Gold due to monetary Jewellery fashion changes Price+ Vat+ needsMaking Charges) At every stage cycle y incur a cost for making charge and it may lead to loss y g y you g g yin 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
Positioning f the FundP iti i of th 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 cost effective and convenient way t ff ti d i t
Benefits of Reliance Gold Savings Fund Subsc p o a d ede p o a a ab e oug • Subscription and redemption available through 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. Investment Plan 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 NAV
Systematic Investing t wealth creation SIP i G ld A edge to in Gold- An d lth ti SIP Return as on Dec 30, 2010 84 Period 1 Year 3 Year 5 Year 10 Years modern tola in t l i 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 goldPast 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 monthlysubscriptions 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 thefirst 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 ofSIP. 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 theillustrated 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 indeclining 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 y p p y g 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: 2%- If redeemed or switched out on or before completion of 1 year from the date of allotment of units Nil - If redeemed or switched out after the completion of 1 year from the date of allotment of units
Product FeaturesP d tF tAsset Allocation Pattern Asset Allocation Instruments I t t Indicative I di ti asset allocation t ll ti Risk P fil Ri k Profile (% of total assets) Minimum Maximum Units of Reliance Gold Exchange Traded g 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 predominantly in the money market 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 g y y g , 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
Product FeaturesP d tF t Minimum A li ti Mi i Application A Amount: R 5 000 and i multiples of R 1 th t Rs. 5,000 d in lti l f Re. thereafter ft Additional Purchase Amount : Rs 1000 (plus in the multiple of Re.1) Minimum Purchase Amount through SIP: Rs.100/- per month and in multiples of Re. 1/- thereafter for minimum 60 months Rs.500/- per month and in multiples of Re. 1/- thereafter for minimum 12 months Rs.1000/- per month and in multiples of Re. 1/- thereafter for minimum 6 months p p Rs.500/- per quarter and in multiples of Re. 1/- thereafter for minimum 12 quarters Rs.1500/- per quarter and in multiples of Re. 1/- thereafter for minimum 4 quarters
TaxationT tiTaxation Benefits Reliance Gold Type of Taxation Gold ETF Jewellers Banks Savings Fund Wealth Tax Nil Nil Applicable Applicable Short Term Capital Sh T C i l Applicable before 1 A li bl b f Applicable before A li bl b f A li bl b f Applicable before 3 A li bl b f Applicable before 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 investments
Summary 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 cost
For all the Gold Lovers in India Reliance Gold Savings Fund Benefits Wahi, Tension Nahi
DisclaimerDi 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 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.
DisclaimerDi 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, 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 time, in, 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 - Nil. 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 Switch out 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 www.amfiindia.com 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 time). However, 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 Load Exit Load Nil. Terms of I L d & E it L d – Nil T f Issue - A th units of th scheme are li t d on th E h As the it f the h listed the Exchange, 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.
DisclaimerDisclaim 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 Plaza, Off. C.G. Road, 006). Sponsor, Trustee Investment 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 achieved. securities, 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 g y g j y p 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 Document and St t D t d Statement of Additi t f Additional I f l Information carefully b f ti f ll before iinvesting. ti