Reliance Mutual Fund

R*Shares ETF offerings

March 2016

Confidential Slide

What is an Exchange Traded Fund (ETF)?

An ETF is a MF Scheme or security that endeavor to replicate the

value of an underlying i.e index or a commodity

2

Confidential Slide

ETFs are Mutual Fund schemes and listed & traded on the

exchange like stocks

An ETF represents a basket of stocks that reflect an index

An ETF helps you to achieve portfolio diversification, risk

management & cash equitization at a relatively low cost

About Exchange Traded Funds (ETFs)

Basket of asset instead

of a single stock

Can be traded like a

stock

Bought and sold on a

stock exchange

3

Confidential Slide

Advantages of Investing in Equity ETFs

ETFs are simple to understand and are transparent to track

Can be bought / sold like any other stock on the exchange (Where the scheme is listed ) through terminals

Generally less expensive than investing in multiple individual securities.

Can be bought / sold anytime during market hours real-time prices instead of end-of-day prices

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Confidential Slide

Applications of ETFs in Various Strategies

#Subject to the market condition and availability of spread and liquidity.

ETFs can be used for a given percentage of each asset class to provide a liquidity buffer across the asset allocation.#

Liquidity Management

ETFs allow investors to gain exposure to an asset class that may be underrepresented in the asset allocation of investors portfolio.

Portfolio Completion

ETFs assist in remaining fully invested while maintaining liquidity, thus minimizing the cash drag effect on the portfolio.

Cash Equitization

Since ETFs are passive funds which may help to maintain market exposure while there are changes in sector/stock allocations in a portfolio, it avoids the risk of missing any market movement.

Portfolio Transitions

5

Confidential Slide

Exchange Traded Funds (ETFs)

Global and Indian Scenario

6

Confidential Slide 7

Globally ETFs have witnessed strong growth across markets

Source: ETFGI, Feb 2016 As per latest available data Note: Past performance may or may not be sustained in the future.

Globally ETFs have witnessed strong

Confidential Slide 8

Overview of Equity ETF market in India

Source: MFI

Note: The data in the above table excludes Gold ETFs and CPSE ETF & Debt ETF. Upon including the Gold

ETFs and CPSE ETF, the total corpus is Rs. 22,412 crs.

Reliance Share in ETF Market: 8.04% Note: Data as on Mar 31, 2016.

728

31315 702

34642776

403 702

19761131 913 959

4856

13149

1 23 4 4

46

10

1216

18

21

22

30

42

0

5

10

15

20

25

30

35

40

45

0

2000

4000

6000

8000

10000

12000

14000

Total Corpus (in Crs) Number of Schemes

Phase 1

FIIs restriction

Phase 2

No FIIs restriction

Confidential Slide 9

Working Mechanism of ETFs in India

Primary Market Secondary

Market

Authorized

Participants /

Financial Institutions Stock Exchange

Fund Buyer

Seller

Buy / Sell

Market making /

arbitrage

Cash ETF units

Cash ETF units Subscription /

redemption

in-kind

Confidential Slide 10

Equity

Our equity offerings cater to all type of investors risk profile

Investment style approach varies from conservative, moderate, aggressive to very aggressive

Our products include :

Market - Cap Based Large Cap, Mid & Small Cap, Multi Cap

Sector Focus Banking, Power, Pharma, Media & Entertainment

Theme Based Infrastructure, Natural Resources (partly investing in overseas securities)

Index Linked & Exchange Traded Funds

Our portfolio comprises of well diversified , high quality fixed income papers which aims to deliver relatively stable returns

Our products are present across the yield curve:

Liquid Nil mark to market component & low volatility

UltraShort Term & Short Term - Short to medium term horizon with medium risk appetite

Long Term - Credit specific & gilt funds

Hybrid - Stability of Debt + Power of Equity

Fixed Income

Gold

Gold portfolio consists of Exchange Traded Fund & Fund of Fund which enable to reap the returns of gold in non-physical

form in a relatively cost effective & convenient way

Our Product Portfol io

Confidential Slide

To be a significant player in the ETF segment

RCAM is committed towards increasing its number of products, AAUM and market share over the

next few years.

To offer a bouquet of ETFs including Generic, Thematic, Sector Specific

and Active ETFs.

RCAM is committed towards bringing out ETFs across various categories.

To focus on product innovation

RCAM is focused on innovating its product offerings and is exploring opportunities like Sector

ETFs, Commodity ETFs, Derivative ETFs, Style ETFs, Bond/Liquid ETFs, Inverse ETFs,

Leveraged ETFs, Synthetic ETFs.

To create a market through substantial education & awareness

As the Indian ETF market is at a nascent stage, RCAM is committed towards the growth of the

market by means of education and awareness.

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RCAM Objective

Confidential Slide

R*Shares positioning: Having a foresight into the growth of the segment, at Reliance Mutual Fund, the ETF offerings were re-branded as R*Shares to create a distinct identity

between passively managed listed products and actively managed offerings. R*Shares series

of ETFs give choice to the investors to participate in the equity markets at low cost as they are

generally less expensive than investing in multiple individual securities.

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Reliance Mutual Fund: ETF Offerings

We presently offer 8 ETFs: Reliance Market Share: 8.04%

Source: MFI. Data as on Mar 31, 2016

R*Shares Nifty ETF

R*Shares Sensex ETF

R*Shares Banking ETF

R*Shares NV20 ETF

R*Shares CNX 100 ETF

R*Shares Consumption ETF

R*Shares Dividend Opportunities ETF

R*Shares Gold ETF

RCAM8.04% CPSE

8.55%

Other AMCs83.41%

Confidential Slide

R*Shares Nifty ETF

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(An Open Ended Index Exchange Traded Fund)

[Rajiv Gandhi Equity Savings Scheme (RGESS) qualified scheme]

Confidential Slide 14

Investment Objective

The investment objective of the scheme is to provide investment returns that, before expenses, closely

correspond to the total returns of the securities as represented by the Nifty 50 index, subject to tracking

errors. However, there can be no assurance or guarantee that the investment objective of the Scheme

will be achieved.

About the Benchmark: Nifty 50 Index

The Nifty 50 is a well-diversified 50 stock index accurately reflecting overall market conditions. The

reward-to-risk ratio of Nifty 50 is higher than other leading indices, making it a more attractive portfolio

hence offering similar returns, but at lesser risk.

R*Shares Nifty ETF

Confidential Slide 15

R*Shares Nifty ETF

Top 10 Stocks Top 10 Sectors

Note: The sectors mentioned in the table is not a recommendation to buy/sell in the said sectors. The scheme currently holding investments in the said

sectors and may or may not have future position in the same. The stocks mentioned forms a part of the portfolio of the scheme and may or may not form a

part of the portfolio in future. Please read Scheme Information Document carefully for more details and risk factors. Source: RMF Website

Stock Allocation (%)

INFOSYS LIMITED 8.55

HDFC BANK LIMITED 7.41

ITC LIMITED 6.48

HDFC LIMITED 6.13

RELIANCE INDUSTRIES LIMITED 6.06

ICICI BANK LIMITED 4.83

TATA CONSULTANCY SERVICES 4.71

SUN PHARMACEUTICALS INDUSTRIES LIMITED3.12

TATA MOTORS LIMITED 2.63

Sector Allocation (%)

Banks 22.54

Software 17.17

Auto 10.12

Consumer Non Durables 10.04

Pharmaceuticals 7.31

Petroleum Products 6.89

Finance 6.13

Cement 3.11

Power 2.60

Confidential Slide 16

Key Fund Details

R*Shares Nifty ETF

Source: RMF Website, MFI

Note: Data as on March 31, 2016. Live Prices (NAV) with the basket is available on Bloomberg page RITE

for reference. Ratios on the basis of 1 year rolling period

Other Key Details

Creation Unit Size: 50,000

NAV per unit: Rs. 79.8379

Approximate Basket Value: Rs. 39.92 lacs

NSE/BSE Symbol: RELNIFTY

Bloomberg Ticker: RELNIFTY:IN

Expense: 0.08%

Total Return Tracking Error

( Apr 2015 to Mar 2016): 0.18%

Index Characteristics

Index Level: 7738.4

Price/Earning: 20.89

Price/Book Value: 3.1

Dividend Yield: 1.49

Portfolio Characteristics

Beta: 0.99

Standard Deviation: 2.60

R Squared: 1.00

Sharpe Ratio: -