NFO: Reliance Index Fund

1. A R C

2. T bl Of Contents
Table C t t
India Opportunity
What are Index Funds
Why Invest in Index Funds
S&P CNX Nifty – Best Representative of India Growth Story
Performance of S&P CNX Nifty
Reliance Index Fund – Nifty Plan
Positioning
Product Features

3. I di – Th Next Trillion D ll O
India The N t T illi Dollar Opportunity
t it
INDIA’S GDP IN USD TRILLION
India took 60 years to get to its first USD 1 Trillion GDP in FY08 but the move to USD 2
FY08,
Trillion GDP will be in next 5-6 years, similar to that of China
Due to the huge consumption and savings/investment boom, USD 2 Trillion GDP is not a
destination, but a milestone in India’s ongoing journey towards USD 4 Trillion GDP in the
g gj y
subsequent 5-7 years, and so on
Estimated for 2010-2014
Source: CMIE, MOSL, RCAM Estimates

4. I di M i T
India Moving Towards Hi h G
d Higher Growth T j t
th Trajectory
...despite concerns of coalition politics, bureaucracy & poor infrastructure
Estimated for 2009-2011
Source: CIEC, RCAM Estimates

5. E
Emerging M k t To Attract Higher Inflows
i Markets T Att t Hi h I fl
Period 1995-99 2000-04 2005-09 2009 Growing size of EM economy and
Avg. World GDP $Bn
Avg 30,292
30 292 35,291
35 291 53,583
53 583 57,228
57 228
g
fading distinction between EM and
Proportion of the World Average GDP level (%) DM economies should lead to
DM countries 80.4 79.5 72.2 69.3 increased capital allocation to EM
US 27.6 30.5 25.7 24.9 economies
UK 4.4
44 4.9
49 4.6
46 3.8
38
Euro area 23.2 21.4 22.1 21.5 Period 1995-99 2000-04 2005-09 2009
Japan 14.8 12.2 8.7 8.8 Avg.World M-Cap 14,047,039 17,734,308 25,689,296 24,630,640
EM countries 19.6 20.5 27.8 30.7 Proportion of the Average World M-Cap (%)
DM markets 94.1 95.3 90.1 86.8
Brazil 2.6 1.7 2.4 2.6
United States 46.6 51.9 44.3 42.5
Russia 1.0 1.1 2.2 2.2
United Kingdom 9.7 10.4 9.6 9.0
India 2.2 1.5 1.9 2.2
Europe (ex-EM) 30.0 29.1 29.0 27.3
China 3.1 4.3 6.5 8.3
Japan 13.8 9.0 9.5 8.6
South Africa 0.5 0.4 0.5 0.5
EM markets 5.9
59 4.7
47 9.9
99 13.2
13 2
Brazil 0.7 0.4 1.3 2.2
Presently, EM economies hold over 30%
Russia 0.2 0.2 0.8 0.8
share in Global GDP, while their share in
India 0.4 0.3 0.7 1.0
Global market cap is only 13% China 0.0 0.3 1.5 2.4
Korea 0.6 0.8 1.4 1.7
MSCI Indices used as proxy for market-cap data (Units: USD million)
Source: IMF GDP data, MSCI m-cap data, RCAM Estimates, DM : Developed Markets, EM: Emerging Markets

6. I
Investments Will Fl
t t T I di
Flow To India
USD (Trillion) CY2008 CY2014
BRIC
GDP 8.29 16.36
Market Cap 5.61 16.36
FII Investments* 1.00 ??
US
GDP 14.20 16.47
Market Cap 12.09 16.47
FII Investments* 10.64 ??
In 2014 BRIC’s combined GDP will be equal to US GDP
2014, BRIC s
At Market Cap GDP ratio of 1, BRIC countries will have a market cap of USD 16.36
Trillion
Significant FII money will flow into the BRIC markets – India will gets its share of
investments
Source - RCAM Estimates, *FII numbers are approximations, BRIC – Brazil, Russia, India, China

7. G
Growth Drivers I Pl
th D i In Place F Th N t D d
For The Next Decade
India has emerged stronger from the global slump and is back on track to grow in excess
of 7-8% per annum
For a sustained long term growth, the 3 growth drivers are in place:
Savings – Domestic savings are the highest in the world
Consumption – Set to explode
Investments – At 34% of the GDP, again among the highest in the world
India’s unique position :
A domestic story – Relatively low dependence on global economy
Scale
From a global investor’s perspective, India is one of the large growing economies

8. St
Strong Fundamentals Lead T Strong Market Returns
F d t l L d To St M k tR t
Indian Economy & Markets (INR)
Real GDP growth
Year-end S&P CNX Nifty Returns (%yoy)
(%yoy)
Mar 03 3.8 -13.14
Mar 04 8.5 81.14
Mar05 7.5 14.89
Mar 06 9.5 67.15
Mar 07 9.7 12.31
Mar 08 9.0 23.88
Mar 09 6.7 -36.19
Mar-10 7.4 73.80
Mar-11E * 8.2 ?
Source: www.RBI.org.in, CMIE, Bloomberg, RCAM estimates *Estimated Figures

9. Why Invest In Index Funds ???

10. I d Funds – Wh t Does It Mean?
Index F d What D M ?
Index funds are mutual fund schemes that endeavors to track/replicate the constituents of
the target index
Index Funds generally hold securities in the same proportion as the target index
Index Funds are passively managed funds :
There is no active selection of stocks by the Fund Manager
The portfolio is rebalanced periodically only when companies enter/exit the index
The expense ratio of index funds are generally less than actively managed equity funds
Index funds in India, generally track S&P CNX Nifty & BSE Sensex Indices

11. Wh One Should I
Why O Sh ld Invest In Index Funds?
tI I d F d ?
Index funds are the simplest of the mutual fund products to understand, even for a
layman who just has a vague idea about the equity markets
Provides an opportunity to participate in India growth story by investing in well-diversified
portfolio of fundamentally strong, highly liquid, well known companies
Index funds aims to minimize unsystematic risk(risk pertaining to companies, sectors etc)
of an i
f investor’s portfolio t a certain extent
t ’ tf li to t i t t
Performance of the portfolio is generally in tune with the performance of the target index
Any variation in performance (known as tracking error) is generally due to the % of
cash allocation & expenses of the fund
Lower management fees & lower portfolio turnover makes it cost efficient

12. S&P CNX Nift – O of the Best Representative of India Growth Story
Nifty One f th B t R t ti f I di G th St
S&P CNX Nifty is a true representative of Indian Economy, since the constituents are
blue chip companies which are the most liquid, biggest & widely owned companies
S&P CNX Nifty is a well diversified 50 stock index accounting for 19 sectors of the
y g
economy & representing almost 62% of free float market cap of NSE
It is widely accepted among the Indian & Global Investors
It is professionally maintained & provides the time series data over a fairly long period of
p y p y gp
time, thus, capturing all heightened activities of bull & bear runs, in the most judicial
manner
Source: www.nseindia.com, 31st Aug 2010

13. P f f Nift
Performance of S&P CNX Nifty
Index values have been rebased at 100
Performance As On 31st August 2010 SIP Performance As On 31st August 2010
Absolute (%) CAGR(%) XIRR(%)
Indices 6 Months 1 Year 3 Years 5 Years 10 Years Indices 1 Year 3 Years 5 Years 10 Years
S&P CNX Nifty 9.75 15.88 6.56 17.76 14.50 S&P CNX
13.37 14.82 13.25 19.40
Nifty
Source: www.nseindia.com, Past Performance may or may not be sustained in future, The above table and graph gives an illustration of the performance of S & P CNX Nifty on the basis of
historical data, if invested directly or through Systematic Investment Plan. The same should not be construed as a 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. Please refer slide 21 for SIP disclaimers

14. I d Constituents of S&P CNX Nifty
Index C tit t f Nift
Weightage in Weightage in
Constituents of S&P CNX NIFTY Constituents of S&P CNX NIFTY
Index (%) Index (%)
ABB INDIA 0.25
0 25 LARSEN & TOUBRO 6.17
6 17
ACC 0.55 MAHINDRA & MAHINDRA 1.65
AMBUJA CEMENTS 0.62 MARUTI SUZUKI INDIA 1.02
AXIS BANK 2.18 NTPC 1.55
BHARAT HEAVY ELECTRICALS 2.46 ONGC 2.69
BHARAT PETROLEUM CORP 0.62 POWER GRID CORP OF INDIA 0.37
BHARTI AIRTEL 2.47 PUNJAB NATIONAL BANK 0.99
CAIRN INDIA 0.96 RANBAXY LABORATORIES 0.47
CIPLA 1.01 RELIANCE CAPITAL 0.55
DLF 0.73 RELIANCE COMMUNICATIONS LTD 0.69
GAIL INDIA 1.28 RELIANCE INDUSTRIES 10.31
HCL TECHNOLOGIES 0.60
0 60 RELIANCE INFRASTRUCTURE 0.90
0 90
HDFC BANK 4.86 RELIANCE POWER 0.35
HERO HONDA MOTORS 1.13 SIEMENS INDIA 0.68
HINDALCO INDUSTRIES 1.37 STATE BANK OF INDIA 4.60
HINDUSTAN UNILEVER 1.77 STEEL AUTHORITY OF INDIA 0.70
HDFC BANK 5.04 STERLITE INDUSTRIES INDIA 1.51
ICICI BANK 7.00
7 00 SUN PHARMACEUTICAL INDUSTRIES 0.84
0 84
IDEA CELLULAR 0.34 SUZLON ENERGY 0.26
IDFC 1.34 TATA CONSULTANCY SERVICES 2.76
INFOSYS TECHNOLOGIES 8.35 TATA MOTORS 2.02
ITC 5.24 TATA POWER 1.30
JAIPRAKASH ASSOCIATES 0.85 TATA STEEL 1.96
JINDAL STEEL & POWER 1.70 UNITECH 0.70
KOTAK MAHINDRA BANK 0.93 WIPRO 1.28
Source: www.nseindia.com, 24th Aug 2010

15. I d t Classification of S&P CNX Nifty
Industry Cl ifi ti f Nift
Source: www.nseindia.com, 31st Aug 2010

16. Reliance Mutual Fund
Presents
Reliance Index Fund – Nifty Plan
Passively Managed Large Cap Oriented Fund
Which Aims To Provide Regular Income In Form Of Defined Dividend Frequency
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. Pursuant to payment of dividend the NAV of the scheme would fall to the extent of payout and statutory levy, if any.

17. P iti i of R li
Positioning f Reliance I d F d – Nift Pl
Index Fund Nifty Plan
A Conservative Large Cap Oriented Index Linked Fund which endeavors to provide
regular income in form of defined dividend frequency
The fund will aim to charge relatively low expense as compared to other actively managed
g y p p y g
equity funds
Investment Management Fee will not be charged for the first calendar quarter, once
the Scheme re opens for continuous sale & repurchase (i.e. till December 31, 2010)*
Passively managed funds which aims to mirror S&P CNX Nifty so as to commensurate
with the performance of the underlying Index, subject to tracking errors
Ideal for those investors who would like to participate in the India growth story by
investing in well diversified portfolio of well known large cap companies
well-diversified
*However for further periods, investors will be notified (through our website) about the Investment Management Fee that will be charged to the Scheme on a quarterly basis at
the beginning of the quarter in case of any change.

18. S h
Scheme F t
Features
The primary investment objective of the scheme is to replicate the
Investment Objective
j composition of the NIFTY, with a view to generate returns that are
commensurate with the performance of the NIFTY, subject to tracking errors
Nature of Scheme An Open Ended Index Linked Scheme
Benchmark S&P CNX NIFTY INDEX
For disclaimers please refer slide no 21
Equities
E iti & equity related securities covered b Nift - 95% 100%
it l t d iti d by Nifty 95%-100%
Cash/CBLO/Repo & Reverse Repo & Money Market instruments (CPs,CDs,
Proposed Asset Tbills, Mibor linked instruments with daily Put/Call options & overnight
Allocation Interest rate Reset Linked Instruments)but excluding Subscription and
Redemption Cash Flow # - 0%-5%
p
#Subscription Cash Flow is the subscription money in transit before deployment and Redemption Cash Flow is the money
kept aside for meeting redemptions.
Fund Manager Krishan Daga
New Fund Offer Price: Rs.10/- per unit

19. S h
Scheme F t
Features
Choice of Plans/Options Load Structure :
(a) Growth Plan
During New Fund Offer & Continuous Offer
(1) Growth Option including SIP Installments
(2) Bonus Option
(b) Dividend Plan
( y
(Payout Option & Reinvestment Option)) Entry Load: Nil
(1) Quarterly Dividend Option
(2) Half Yearly Dividend Option Exit Load:
(3) Annual Dividend Option
• 1% of the applicable NAV if redeemed or switched out on or before
Minimum Application Amount completion of 1 year from the date of allotment of units
Rs.5000 & in multiples of Re. 1 thereafter • There shall be no exit load after completion of 1 year from the date
Additional Purchase Amount of allotment of units
In
I accordance with th requirements specified b th SEBI circular no. SEBI/IMD/CIR
d ith the i t ifi d by the i l
Rs.1000 (plus in the multiple of Re.1) 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
SIP 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
Mode of Payment : Auto Debit/ECS/PDCs 01, 2009.

20. Ri k F t
Risk Factors
The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the readers. This information is
meant for general reading purpose only and is not meant to serve as a professional guide for the readers. This document has been prepared on the basis of publicly
available information, internally developed data and other sources believed to be reliable. The Sponsor, The Investment Manager, The Trustee or any of their respective
information reliable Sponsor Manager
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 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 and arrive at an informed investment decision
before making any investments. 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
y p q p p y g g p g y y
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 securities thereof, of company(ies) / specific
sectors mentioned herein.
Reliance Index Fund - Nifty Plan (An Open Ended Index Linked Scheme): The primary investment objective of the scheme is to replicate the composition of the Nifty,
with a view to generate returns that are commensurate with the performance of the Nifty, subject to tracking errors. Asset Allocation Pattern: Equities and equity related
securities covered by Nifty – 95% to 100% Cash/CBLO/Repo & Reverse Repo & Money Market instruments (CPs,CDs, Tbills, Mibor linked instruments with daily Put/Call
options & overnight Interest rate Reset Linked Instruments)but excluding Subscription and Redemption Cash Flow# – 0% to 5%. #Subscription Cash Flow is the subscription
money in transit before deployment and Redemption Cash Flow is the money kept aside for meeting redemptions.
Terms of issue and mode of sale and redemption of units: The units of Scheme 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
allotment. The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 Business Days from the date of redemption or repurchase.
Investor b
I t benefits and general services offered: Th S h
fit d l i ff d The Scheme offers S t
ff Systematic I
ti Investment Pl
t t Plan, A t S it h f ilit O li T
Auto Switch facility, Online Transactions and R li
ti d Reliance A Ti
Any Time M
Money
Card 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.reliancemutual.com.
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 Off C G Road Ahmedabad 380 006) The Sponsor the Trustee and the Investment Manager are incorporated
Reliance House Nr. Plaza, Off. C.G. Road, 006). Sponsor,
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.

21. Ri k F t
Risk Factors
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 Scheme can go up or down depending on the factors and forces
affecting the securities market. Reliance Index Fund – Nifty Plan is only the name of the Scheme and does 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. There are various risks associated with investing in Equities, Bonds, Derivatives, Securitised Debt and Short Selling & Securities Lending.
For Scheme specific 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
Statement of Additional Information carefully before investing.
SIP Disclaimers
Returns on SIP are annualised and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions on 1st of every month have been
worked out on excel spreadsheet function known as XIRR. It is assumed that a SIP of Rs. 1000/- each executed on 1st of every month has been taken into consideration
including the first installment. It may please be noted that load has not been taken into consideration. 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 i di ti of f t
t t il indicative f future results and may not necessarily provide a b i f comparison with other i
lt d t il id basis for i ith th investments. SIP d
t t does not guarantee or assure
t t
any protection against losses in declining market conditions.
S&P CNX Nifty Disclaimers : S&P®” and “Standard and Poor’s®” are trademarks of the “S&P”, and have been licensed for use by India Index Services & Products
Limited in connection with the S&P CNX Nifty Index. “The Product(s) are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or
Standard and Poor’s Financial Services LLC (“S&P”).. Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of the Product or any
member of the public regarding the advisability of investing in securities generally or in the Product Please read the full Disclaimers in relation to the S&P CNX Nifty Index
Product.
in the Scheme Information Document.

22. Thank you
y
A R C