KEY FEATURES DOCUMENT (For Resident Indian and NRI customers of the Hongkong and Shanghai Banking Corporation Limited, India (HSBC India)) Product Reliance Gold Savings Fund from Reliance Capital Asset Management Limited General Information Full name of the investment product Name of the issuing Company. Contact address and phone number, and details of its regulatory status and licences of the company Reliance Gold Savings Fund (RGSF) The above will be referred to as scheme Reliance Capital Asset Management Limited (RCAML or AMC) Corporate Office: 11th floor & 12th floor, One Indiabulls Centre, Tower 1 Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013 Tel No. 022 30994600 SEBI Registration Number MF/022/95/1 Aim and nature of the product RGSF is an open ended Fund of Fund Scheme with an investment objective to provide returns that closely correspond to returns provided by Reliance Gold Exchange Traded Fund (RGETF). Under normal circumstances, the asset allocation of the scheme will be as follows: Instruments Indicative allocation (as a % of assets) Min Max Units of RGETF 95% 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% 5% The scheme s performance will be benchmarked against the price of physical gold Please read the relevant Scheme Information Page 1 of 7
Statements or regular reports issued during the investment period Any cooling off period (right to cancel investment post sale) Details of charges associated with cancellation during the cooling off period Investment Conditions Minimum and maximum initial investment in the product Permissible frequency and amount(s) of subsequent investments Minimum and maximum term for investment Product Particulars Any guarantee or protection on the capital or income from the investment in this product Details of the organisation providing the guarantee or protection Details of any situations in which the protection or guarantee may not apply Charges levied on the customer either initially or during the product life document (SID) for more details on asset allocation and investment pattern of the scheme available on the AMC website. The AMC shall issue to the investor whose application (other than SIP) has been accepted, an account statement specifying the number of units allotted within a maximum of five working days from the date of Allotment or may be prescribed by the Regulations from time to time. No Minimum investment amount is INR 5,000. There is no limit on the maximum initial investment in the product.. The product is an open ended fund and as such customers can exit from the product subject to applicable exit loads. This fund is not capital protected or capital guaranteed and therefore the value of the investment will fluctuate and may be more or less than the original investment. The investors in the Scheme will be charged a maximum of 1.5% of the daily or average weekly net assets of RGSF including the expenses charged in its underlying investments in RGETF. The scheme would charge an exit load of 2% if redeemed or switched out on or before completion of 1 Page 2 of 7
Performance fee mechanism if applicable The frequency and basis of calculation for interest / returns payable Any component funds which make up the investment product How can the customer find out the current worth of their investment? Does the customer have voting rights in any underlying stock Law applicable to the investment contract Legal and regulatory status of the product provider (Portfolio Manager) Methodology for calculating returns for tracker (indexed) products, year from the date of allotment of units. There is no exit load after the completion of 1 year from the date of allotment of units. There is no entry load. The scheme may invest in open ended liquid schemes registered with SEBI or schemes that invest predominantly in money market instruments / securities. The AMC will calculate and disclose the first NAV within five business days of allotment. Subsequently, the NAV will be calculated and disclosed at the close of every Business Day which shall be published in at least two daily newspapers and also uploaded on the AMFI site www.amfiindia.com and www.reliancemutual.com by 10.00 a.m. on the following business day Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 The Asset Management Company is an unlisted public limited company incorporated under the Companies Act, 1956 on February 24, 1995. Early Withdrawal Is it possible to withdraw some or all investment funds? Details of charges or penalties incurred through early withdrawal Procedure for making an early withdrawal Page 3 of 7 Being an open ended scheme, the customer can make withdrawals in full or in part subject to applicable penalties called exit loads. The scheme charges an exit load of 2% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. There is no exit load after the completion of 1 year from the date of allotment of units. The redemption requests can be made by providing specific instruction to the AMC, through the Bank.
Investors may directly access the AMC as well Page 4 of 7 Liquidity considerations in the event of early withdrawal Risk Factors Whether the investment value, or income arising, can rise as well as fall? Whether the customer could get back less than their original investment? Risks associated with investing in Fund of Funds Redemption request can be given on any business day. The liquidity of the Scheme s investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. In the event of an inordinately large number of redemption requests, or of a re structuring of the Scheme s investment portfolio, these periods may become significant. Yes Yes. It is possible that the market value of the portfolio maybe below the amount originally invested. 1. The investors of the scheme will bear dual recurring expenses and possibly dual loads, viz, those of the Scheme and those of the underlying Schemes. 2. The changes in asset allocation in the scheme may result in higher transaction costs. 3. The scheme assets are predominantly invested in RGETF and valued at the market price of the said units on the principal exchange. The same may be at a variance to the underlying NAV of the scheme, due to market expectations, demand supply of the units, etc. To that extent the performance of scheme shall be at variance with that of the underlying ETF. 4. Although the units of RGETF are listed on the National Stock Exchange of India Limited, there can be no assurance that an active secondary market will develop or be maintained 5. The value (price) of gold may fluctuate for several reasons and all such fluctuations will result in changes in the NAV of units under the scheme. 6. The endevaour of the AMC as per their SID, would always be to get cash on redemptions from the underlying fund. However, in case the
underlying fund is unable to sell for any reason, and delivers physical gold, there could be delay in payment of redemptions proceeds pending such realization. In addition to the above, please read the relevant Scheme Information document (SID) for more details on risks factors of the scheme and also the risks associated with RGETF. Possibility of any currency risk What would happen if the underlying fund provider were to become insolvent? Impact of the investment on the customer s overall tax position Investors funds are invested into exchange traded fund and the investments and the portfolio value are denominated in Indian Rupee (INR). As such, there is no currency risk arising either on account of transactions or conversions. The insolvency of the Portfolio Manager may not have an impact on the value of the investments as the investor s investments are held in a trust by a custodian and the Investment Manager may not have any right or authority to use the investor s funds to meet the latter s financial obligations or liabilities. However, the Investment Manager s ability to manage funds effectively may be significantly impaired in the eventuality of insolvency. Investors are advised to seek independent tax opinion. Important Information HSBC India is merely facilitating your investments into MF products that are independently managed by the respective product providers. Mutual Fund investments are subject to market risks, please read all scheme related documents carefully before investing. Page 5 of 7
Confirmation I/ We hereby declare the following: 1. I/We have read and understood this Key Features Document and have fully understood all the features and associated risks of and have agreed to invest in, after understanding the Indian equity markets and Fund of Funds. 2. I/We understand and agree that investment of monies in shall be exclusively at my/our own risk and HSBC India shall not be responsible for any loss, costs or damages that I/we may incur in relation to such investment of monies. 3. I/We also understand and agree that HSBC India does not in any manner warrant, certify or endorse or its features. Signature: Customer s Name: Date: The Hongkong and Shanghai Banking Corporation Limited, India 2006 52/60 Mahatma Gandhi Road, Mumbai 400 001 This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC India) in India, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe for any investment. The information herein is derived from publicly available sources that HSBC India considers reliable but which has not been independently verified. Whilst every care has been taken in compiling the information, HSBC makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of HSBC India only and are subject to change without notice. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this publication and should understand that the views regarding future prospects may or may not be realized. Past performance is not indicative of future results. This document is for HSBC customers only. HSBC makes no representations that the products or services mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the products discussed will not afford the protection offered by the local regulatory regime in any other country. HSBC India or its affiliates or their officers, directors and employees may have investments in any of the products mentioned in this publication (or in any Page 6 of 7
related products) and may from time to time, add to or dispose off any such investment. Please read the Scheme Information Document provided by the Investment Manager/AMC carefully before investing. For private circulation only. The information contained herein is confidential to the recipients thereof and may not be reproduced or otherwise disseminated. Page 7 of 7