R*Shares Gold ETF An Open Ended Gold Exchange Traded Fund that tracks the domestic prices of gold through investments in physical gold PRODUCT LABEL This product is suitable for investors who are seeking*: long term capital growth Returns that are commensurate with the returns provided by physical gold through investment in physical gold and gold related securities as permitted by regulators from time to time *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 1
Index Positioning of the Fund...3 Investment Philosophy 3 Benefits of Investing in R* Shares ETF.....3 Portfolio & Scheme Features.. 4 How to invest.. 5 Risk Factors & Disclaimers. 5 2
Positioning of the Fund R*Shares Gold ETF is a passively managed exchange traded fund which endeavors to track and provide similar returns to its benchmark- the domestic prices of gold, through investment in physical gold and money market instruments. Investment Philosophy A smart, and easy way to invest in Gold in a demat form. An Investment Opportunity which enables an investor to allocate gold which helps to diversify a portfolio. Open-ended exchange traded fund entry & exit through the stock exchange (NSE/BSE). Invests exclusively in physical gold which shall be of fineness( or purity) of 995 parts per 1000 ( 99.5 % ) or higher Portfolio focused on providing returns that closely correspond to the returns provided by physical gold. Benefits of Investing in R*Shares Gold ETF Low cost : When you buy R*Shares Gold ETF you have to pay brokerage charges, which is usually much lower than paying for markup charges while buying physical gold. Transparency: R*Shares Gold ETF, the rates are transparent as they are traded like a share on the National Stock Exchange / Bombay Stock Exchange and therefore it provides the ability to buy and sell them quickly at the ruling market price and therefore highly liquid. There is no consistency when you buy and sell physical gold across jewelers or banks Security: Unlike physical gold no concerns about security, theft. Safeguard in the form of electronic mode in the case of unforeseen circumstances. Collateral for trading on NSE: R*Shares Gold ETF is accepted as collateral for trading on National Stock Exchange of India Ltd. Ability to buy in small units: R*SHARES GOLD ETF one unit is approximately equal to one gram of gold which can be directly bought through the trading terminals. No securities transaction tax for trading R*SHARES GOLD ETF Feasibility: R*SHARES GOLD ETF units are available on NSE and BSE which provides feasibility to the investor to buy and sell the units during trading hours of the exchange subject to availability of buyer & Seller. It enables to limit orders as well as permits intraday trading. 3
Portfolio & Scheme Features As on 30 th September, 2016 Asset Allocation as on 30 th September, 2016 GOLD 995 1KG BAR 99.81% Sub Total of Gold 99.81% Cash and Other Receivables 0.19% Grand Total 100% Scheme Features Investment Objective Inception Date November 21, 2007 Minimum Investment Load Structure Purity of Gold Benchmark 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, performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. However, there can be no assurance that the investment objective of the scheme will be achieved. On the Exchange: Any investor eligible to trade on the exchange can buy minimum one unit of R*Shares Gold ETF which is approximately equal to 1 gram of gold on NSE/BSE. Minimum investment in ETF in secondary markets is one unit representing approximately one gram of gold in the beginning and the weight of gold representing 1 unit keeps reducing to the extent of expenses. Through the AMC: Purchases directly from the Mutual Fund is restricted to Authorized Participants as appointed by the AMC provided the value of units to be purchased is in creation unit size of 1000 units and cash component if any. In addition to authorized participant(s) Reliance Gold Savings Fund can also buy / sell the units from the fund in Creation Unit Size. Entry Load*: Not Applicable *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor Exit Load: Nil All gold bullion held in the scheme's allocated account with the custodian shall be of fineness (or purity) of 995 parts per 1000 (99.5%) or higher As there are no indices catering to the gold sector/securities linked to Gold, currently R*Shares Gold ETF is benchmarked against the price of Gold Fund Manager Omprakash Kuckian (w.e.f 01/09/2015) Month End AUM 1347 Cr.(as on 30 September, 2016) 4
How to invest The units of the fund are currently available on National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE). An investor can directly buy and sell the units of scheme through the broker associated with NSE/BSE and he would receive the units in his demat account on a T+2 rolling settlement NSE Code/BSE Scrip Id RELGOLD BSE Scrip 533891 Pricing (per unit) Minimum Investment One unit= Approx one gram of gold On the Exchange: One unit Through the AMC(only for Authorised Participants as appointed by the AMC) : 1000 units Risk Factors & Disclaimers Scheme Specific Risk Factors: Trading volumes and settlement periods may restrict liquidity in gold/god Deposit Scheme (GDS)/Debt Instruments and Gold Monetisation Scheme (GMS). Investment in gold is subject to price risk. Investment in GDS & GMS is subject to credit risk of the bank. The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The NAV may also be subjected to risk associated with tracking error, investment in derivatives or script lending as may be permissible by the Scheme Information Document. The other risk factors relating to ETF are market risks, tracking error risks, liquidity risk and risk of ETF getting traded at discount/premium to the NAV (Net Asset Value). BSE Disclaimer: It is to be distinctly understood that the permission given by BSE Ltd. should not in any ways be deemed or construed that the SID has been cleared or approved by BSE Ltd. nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Ltd. NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE Disclaimers: The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since Reliance Nippon Life Asset Management 5
Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RNLAM does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNLAM s views or opinions, which in turn may have been formed on the basis of such data or information. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 6