Reliance Tax Saver (ELSS) Fund - InvestmentKit Docs · Investors can consider investing through SIP in an ELSS plan Source: Bloomberg 6 Only for illustration, past performance may

Reliance Tax Saver (ELSS) Fund

Open Ended Equity Linked Savings Scheme

December 2012

Confidential Slide

Why Invest in ELSS?Reliance Tax Saver (ELSS)Fund-Understanding the Fund

Reliance Tax Saver (ELSS) Fund- Fund Features

Reliance Tax Saver (ELSS) Fund- Risks & Prospects

Reliance Tax Saver (ELSS) Fund – Fund Facts

2

Confidential Slide

“…in this world nothing can be said to be

certain, except death and taxes”

- Benjamin Franklin (1789)

3

Confidential Slide

Comparing Tax Saving Instruments

In ELSS both capital gains and dividend are tax free

4

InstrumentInvestable

PeriodReturns

Investment Limit

Tax Benefits Risk Profile

PPF 15 Years 8% P.ARs.

1,00,000

Max upto Rs. 1,00,000 U/s 80c in a Financial Year, Interest Income Tax free U/s 10(11).

LOW

NSC 6 Years

8% (Compounded

Semi Annually)

No LimitMax upto Rs. 1,00,000 in a Financial Year. Income received taxable

LOW

ELSSUnlimited (3 Year Lock-In)

Not Assured No Limit

Max upto Rs. 1,00,000 in a financial Year. Dividend tax free U/s 10(35) and Long term capital gains tax U/s 10(38)

HIGH

The tax benefits are as per the current Income Tax laws & rules and any other law for the time being in force. Investors are advised to consult their tax advisors

before investing in the scheme.

Confidential Slide

Understanding Section 80(C)

Section 80C of the Income Tax Act, 1961 provides tax payers a deduction from

taxable income of up to Rs 1 lakh per year on investments made in specified tax-

saving instruments, like Equity Linked Saving Schemes of notified mutual funds.

Finance Bill 2009 allows the entire Rs 1 lakh investment in equity linked saving

schemes to get a deduction.

This deduction is available for any individual or HUF irrespective of the income

levels.

5

Case 1 Case 2TOTAL INCOME 1,000,000 1,000,000

DEDUCTION U/S 80 C 100,000 -

TAXABLE INCOME 900,000 1,000,000

TAX AMOUNT 124,000 154,000

CESS on Tax amount @3% 127,720 158,620 Saving (Rs.) 30,900 -

The tax benefits are as per the current Income Tax laws & rules and any other law for the time being in force. Investors are advised to consult their tax advisors

before investing in the scheme.

Confidential Slide

BSE-100 31-Mar AverageRange

Min Max

FY07 3,786 3,821 3,122 4,145

FY08 4,775 3,821 4,079 6,469

FY09 2,867 3,649 2,620 5,336

FY10 5,394 4,813 3,366 5,394

FY11 5,856 5,713 5,244 6,192

FY12 5,315 5,283 4,598 5,795

End of the Financial year may not always be the best time to invest

Note - Average denotes the average computed by taking the index level of

BSE-100 (benchmark) for each month of the Financial year

Timing the market might not work for all investors

Also, towards the end of the Financial year the investor might have

other commitments

Investors can consider investing through SIP in an ELSS plan

Source: Bloomberg

6

Only for illustration, past performance may or may not sustain in future

Confidential Slide

Why Invest in ELSS?

Reliance Tax Saver (ELSS) Fund-Understanding

the FundReliance Tax Saver (ELSS) Fund- Fund Features



7

Confidential Slide

Understanding Reliance Tax Saver (ELSS) Fund

8

Large Domestic Companies

• ~49% of the portfolio

• Levered to Indian Capex & consumption

• SBI, ICICI Bank Ltd., Divis Labs, Madras Cements, TVS Motors

MNC stocks


• High quality businesses with sustained growth

• Maruti Suzuki, Siemens, ABB, Alstom T&D, Sanofi, Cummins, Eicher, Schneider etc.

Contrarian Investments


• Stocks that can benefit from policy changes

• HPCL

Emerging sectors


• Retail – Trent, Shopper‟s Stop

• Internet – Info Edge

Name of the companies are only for Illustration purposes and may or may not be part of portfolio of the scheme going forward. (as on 30th November 2012)

Confidential Slide

Investment Philosophy

High focus on alpha generation

Invest in companies with potential of high growth prospects over

medium term (2-3 years)

Endeavours to generate high return over a longer duration, although

returns can be lumpy

Normally have equal weight between BSE-100 and mid cap

companies; around 40% to 60% in each

Time frame of investments in the Reliance Tax Saver Fund is

longer

Look at investments with a 2 to 3 year time-frame

3 year lock-in helps. Incremental inflows can be invested in longer

term opportunities

9

Confidential Slide

Investment Style

Generally, the Fund has two or three sector calls at a time. They are mostly in-line of emerging market trends

Significant percent of outstanding equity of the company is invested in high conviction mid-cap companies Bottom-up investing in mid-cap companies

Small percentage of portfolio is invested in contrarian bets

Source: Fund Fact Sheet., RMF.

10

Tax Savers Fund FY10 FY11 FY12 Nov-12

Domestic Theme 26% 42% 47% 49%

Consumer 22% 29% 26% 31%

Defensive 8% 13% 12% 9%

Contra 0% 4% 5% 3%

Confidential Slide

Why Invest in ELSS?

Reliance Tax Saver (ELSS) Fund-Understanding the Fund

Reliance Tax Saver (ELSS) Fund- Fund FeaturesReliance Tax Saver (ELSS) Fund- Risks & Prospects


11

Confidential Slide

Investment in MNC‟s Technology/Brand

Leadership

Quality Management Ensures global understanding

India has a very important place in overall global portfolio India as one of the growth

drivers for the parent

Parent Company‟s focus on Indian operations Indian operations are

domestic focused rather than a low cost manufacturing location

Source: Fund Fact Sheet, Name of the companies are only for Illustration purposes and may or may not be part of portfolio of the scheme going forward.

12

*Volvo‟s JV (VECV) is a large part of the business

Company Name Nov-12

EICHER MOTORS LTD. 6.27

MARUTI SUZUKI INDIA LTD. 5.00

Alstom T&D India Ltd 3.50

Sanofi India Ltd.* 3.34

ABB LTD 2.59

CUMMINS INDIA LTD. 3.17

SML ISUZU LTD 2.78

FEDERAL MOGAL GOETZE LTD. 2.29

SKF INDIA LTD. 1.74

Schneider Electric Infrastructure Ltd 3.24

KSB PUMPS LTD. 1.55

*AVENTIS PHARMA LTD.

Confidential Slide

Significant Investment in High Conviction Stocks

Portfolio investments

are with a 2 to 3 year

timeframe

As the investments

mature alpha may be

generated.

Overall portfolio

balance is achieved

by investments in

defensives and

contrarian stocks

13

Name of the companies are only for

Illustration purposes and may or may not

be part of portfolio of the scheme going

forward.

*RTSF : Reliance Tax Saver (ELSS) FundSource: Fund Fact Sheet , Bloomberg. Weights are as on 30th November 2012

Company NameAs a % of

RTSFAs a % of Co

Swaraj Engines Ltd 2% 9%

SML ISUZU Ltd 3% 9%

Federal-Mogul Goetze India Ltd 2% 4%

Eicher Motors Ltd 6% 2%

Confidential Slide

Portfolio Classification on a macro basis

Note - The total does not add to 100% as only the weights given in Fact

Sheet are considered. This excludes Holding „s less than1% of the fund

as well as Cash and Equivalents

Attempt to have a balanced portfolio on a macro basis

Domestic Theme – Domestic Capex cycle

Consumption Theme – Stocks dependent on consumer spending

Defensives – Healthcare, FMCG and IT Services sectors

Contrarian Investments – Out of favor and deep value stocks

14

Source: Fund Fact Sheet

Tax Savers Fund Nov-12

Domestic Theme 49%

Consumer 31%

Defensive 9%

Contra 3%

Confidential Slide

Investment in Benchmark Stocks

Around 40% invested in the

benchmark

Philosophy is “Benchmark

aware but not Benchmark

constrained”

Even within the benchmark

focus on research and invest

Focus in stocks within the

benchmark is to generate

superior returns and not

allocate a part of the corpus

Ensure portfolio liquidity

Source: Fund Fact Sheet , Bloomberg. BSE weights are as on 30th Nov 2012 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.

15

Company% of

AUM

% of

BSE 100

(Free

Float)

State Bank of India 5.8 2.7

Maruti Suzuki India Ltd 5.0 0.9

Bharat Forge Ltd 3.3 0.2

Divi's Laboratories Ltd 3.9 0.3

ICICI Bank Ltd 4.1 5.5

ABB Ltd/India 2.6 0.2

Cummins India Ltd 3.2 0.3

Hindustan Petroleum Corp Ltd 2.9 0.2

Larsen & Toubro Ltd 2.2 4.0

Confidential Slide

Changes in Portfolio

Increased allocation in

Industrials, Financials,

and Healthcare from Oil

& Gas, and Metals &

Mining.

Investments are with a

view to capture the

capex cycle and increase

exposure to domestic

core sectors.

Source: Fund Fact Sheet, 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. Please read Scheme Information Document carefully for more details and risk factors.

16

Tax Saver Fund FY 10 FY 11 FY 12 Nov-12

Industrials 22% 24% 31% 33%

Financials 19% 19% 16% 13%

Auto Component 7% 8% 9% 9%

Healthcare 6% 5% 9% 7%

Oil & Gas 10% 7% 5% 3%

Auto 2% 2% 5% 9%

IT 7% 7% 3% 2%

Metals & Mining 6% 4% 1% 0%

Media 1% 1% 1% 2%

Misc. 1% 0% 2% 1%

Others 3% 14% 10% 13%

Confidential Slide

Why Invest in ELSS?



Reliance Tax Saver (ELSS) Fund- Risks & ProspectsReliance Tax Saver (ELSS) Fund – Fund Facts

17

Confidential Slide

Risk Profile

Low beta denotes a less volatile portfolio through which returns are generated, which implies that stock selection becomes key

Attempt is to outperform benchmark with lower volatility

Source: Fund Fact Sheet, Bloomberg. Beta is calculated Ex-Ante on weekly returns by Bloomberg

18

Year Beta

2007 0.94

2008 0.87

2009 0.71

2010 0.86

2011 0.86

2012 0.83

Nov-12 0.82

Confidential Slide

Going Forward

The portfolio is well poised with an aim to capture cyclical upswing in Indian Economy in the next 3 years.

Over the last one year investments in some of the mid-cap companies have given relatively sizable returns. Most of them may continue to do well and our long term investment thesis is intact.

Investments in the Industrials are not in generic company‟s but a play on capex cycle and on India‟s economic growth

Investments within Oil & Gas sector have been made with a view that reforms in this sector are inevitable in medium term. At the same time many of the stocks are trading at deep value and have excellent long term potential.

19

Confidential Slide

Why Invest in ELSS?





20

Confidential Slide

Investment ObjectiveThe primary objective of the scheme is to generate long term capitalappreciation from a portfolio that is invested predominantly in equityand equity related instruments

Equity & Equity Related Securities80%-100%

Debt & Money Market Instruments0-20%

Nature of Scheme An Open Ended Equity Linked Savings Scheme

Benchmark BSE 100

Proposed Asset Allocation

Inception Date 22nd September 2005

Fund Corpus Quarterly AAUM: Rs 1,994 Crores ( September 30th , 2012 )

Scheme Features

21Fund Manager : Mr. Ashwani Kumar. Asst Fund Manager: Viral Berawala

Confidential Slide

Load Structure

*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

Entry Load: Not Applicable*

Exit Load :

• 1% 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 completion of1 year

from the date of allotment of units

w.e.f October 01, 2012, Exit Load If charged to the

scheme shall be credited to the scheme immediately net of

service tax, if any.

Choice of Plans/Options

Growth Plan

Growth & Bonus Option

Dividend Plan

Dividend Payout & Reinvestment Option

Minimum Application Amount

Rs.500/- & in multiples of Rs.500 thereafter

Scheme Features

22

Confidential Slide

Top 10 Holdings & Top 5 Sectors (November 30th , 2012)

Portfolio & Performance Insight

23

Portfolio of RELIANCE TAX SAVER FUND

As on 30/11/2012

Holding Weightage(%)

Equities

Eicher Motors Ltd 6.27

State Bank of India 5.80

Maruti Suzuki India Ltd 5.00

ICICI Bank Ltd 4.11

Divi's Laboratories Ltd 3.88

Madras Cements Ltd 3.87

Alstom T&D India Ltd 3.50

Bharat Forge Ltd 3.36

Sanofi India Ltd 3.34

Bajaj Finance Ltd 3.24

Sector Allocation

Auto 17.96%

Industrial Capital Goods 13.64%

Industrial Products 12.48%

Banks 10.71%

Pharmaceuticals 7.22%

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

sectors/stocks and may or may not have future position in the same. Please read Scheme Information Document carefully for more details and risk factors.

Confidential Slide

Performance of Reliance Tax Saver(ELSS)

Fund

For performance of the other schemes managed by the same Fund Manager, request you to refer slide no.56 to 58

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Since inception returns (wherever

provided) is computed on Compounded Annualized Growth Returns (CAGR) basis. For Scheme(s) which has completed more than 3 years, point to point returns for twelve month

periods for last 3 years is provided basis the last day of the calendar quarter and are computed on absolute basis. In case the scheme(s) which is in existence for more than 1 year but

less than 3 years, point to point returns is provided for as many period as possible, such period being counted from the last day of the calendar quarter and are computed on absolute

basis. Further (wherever applicable), Returns for 7 days, 15 days and 30 days are computed on a simple annualized basis. Performance of dividend option would be Net of Dividend

distribution tax, if any. Since inception returns are based on first declared NAV. Face of value of scheme is Rs. 10/- per unit. In case, the start/end date of the concerned period is non-

business day (NBD), the NAV of the previous date is considered for computation of returns.

Source : Fund Fact Sheet

24

NAV as at Sep 28, 2012 (Rs.) 23.2482

Performance of Tax Saver (ELSS)Fund - Growth Plan - Growth Option as on 28/09/2012

Date

NAV Per

Unit (Rs.)

Scheme

Returns

(%)

Benchmar

k Returns

# (%)

Additional

Benchmar

k Returns

# # (%)

Current Value of Standard

Investment of Rs 10000 in the

Scheme

(Rs)

Benchmark

#(Rs)

Additional

Benchmark

# # (Rs)

Since inception till Sep 28, 2012 9.9500 12.85 12.31 12.47 23,365 22,592 22,821

Sep 28, 2011 to Sep 28, 2012 19.4715 19.40 13.90 14.09

N.A.Sep 28, 2010 to Sep 28, 2011 23.3445 -16.59 -19.13 -18.20

Sep 29, 2010 to Sep 28, 2010 16.3506 42.77 21.22 19.30

Since Inception Date - 22/09/2005# Benchmark BSE 100

## Additional Benchmark BSE SENSEX

Confidential Slide

Performance of the other schemes

managed by Ashwani Kumar (please refer

slide no. 26 & 27)

25

Confidential Slide 26

NAV as at Sep 28, 2012 (Rs.) 9.6964

Performance of Reliance Natural Resources Fund - Retail Plan - Growth Option as on 28/09/2012

Date

NAV Per

Unit (Rs.)

Scheme

Returns (%)

Benchmark

Returns #

(%)

Additional

Benchmark

Returns # #

(%)

Current Value of Standard Investment of

Rs 10000 in the

Scheme

(Rs)

Benchmark

#(Rs)

Additional

Benchmark #

# (Rs)

Since inception till Sep 28, 2012 10.1462 (0.98) (0.76) 1.15 9,557 9,655.76 10,537

Sep 28, 2011 to Sep 28, 2012 9.5111 1.95 14.64 14.09

N.A.Sep 28, 2010 to Sep 28, 2011 10.9061 -12.79 -12.64 -18.20

Sep 29, 2010 to Sep 28, 2010 9.8639 10.57 13.63 19.30

Since Inception Date - 26/02/2008# Benchmark Custom Benchmark *


*A custom benchmark created using the BSE-200 to the extent of 65% of portfolio and MSCI World Energy Index for balance 35% of the portfolio.

Confidential Slide 27

NAV as at June 30, 2011 (Rs.) 13.1065

Performance of Reliance Equity Advantage Fund - Retail Plan - Growth Option as on 30/06/2011

Date

NAV Per

Unit (Rs.)

Scheme

Returns (%)

Benchmark

Returns #

(%)

Additional

Benchmark

Returns # #

(%)


Rs 10000 in the

Scheme

(Rs)

Benchmark

#(Rs)

Additional

Benchmark #

# (Rs)

Since inception till June 30, 2011 9.7625 7.86 6.60 5.86 13,425 12,825 12,482

June 30, 2010 to June 30, 2011 12.3205 7.53 7.56 7.66

N.A.June 30, 2009 to June 30, 2010 9.7420 25.06 22.45 20.93

June 30, 2008 to June 30, 2009 8.8798 14.55 10.15 11.86

Since Inception Date - 09/08/2007

# Benchmark S&P CNX Nifty


NAV as at Sep 28, 2012 (Rs.) 13.7299

Performance of Reliance Top 200 Fund - Retail Plan - Growth Option as on 28/09/2012

Date

NAV Per

Unit (Rs.)

Scheme

Returns (%)

Benchmark

Returns #

(%)

Additional

Benchmark

Returns # #

(%)


Rs 10000 in the

Scheme

(Rs)

Benchmark

#(Rs)

Additional

Benchmark #

# (Rs)

Since inception till Sep 28, 2012 11.0256 22.22 15.88 16.70 12,453 11,748 11,839

Sep 28, 2011 to Sep 28, 2012 11.3703 20.75 13.48 14.09 N.A.

*Since Inception Date - 26/08/2011

# Benchmark BSE 200


Confidential Slide

COMMON DISCLAIMER FOR PERFORMANCE OF ABOVE SCHEMES:

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Since inception returns (wherever provided) is computed on Compounded Annualized Growth Returns (CAGR) basis. For Scheme(s) which has completed more than 3 years, point to point returns for twelve month periods for last 3 years is provided basis the last day of the calendar quarter and are computed on absolute basis. In case the scheme(s) which is in existence for more than 1 year but less than 3 years, point to point returns is provided for as many period as possible, such period being counted from the last day of the calendar quarter and are computed on absolute basis. Performance of dividend option would be Net of Dividend distribution tax, if any. Since inception returns are based on first declared NAV. Performance of dividend option would be net of dividend distribution tax, if any. Face of value of scheme is Rs. 10/- per unit. Face of Value of Reliance Money Manager Fund is Rs.1000/- per unit. Face value of Reliance Gold Exchange Traded Fund is Rs.100 per unit. Schemes which have not completed one year, performance details for the same are not provided. In case of Fixed Maturity Plan(s), the performance is not provided since these are close ended schemes and not comparable with other debt schemes. In case, the start/end date of the concerned period is non-business day (NBD), the NAV of the previous date is considered for computation of returns.

The tax benefits are as per the current Income Tax laws & rules and any other law for the time being in force. Investors are advised to consult their tax advisors before investing in the scheme.

Disclaimer & Risk Factors:

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 thestatements 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.

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 securities thereof, of company(ies) / specific economic sectors mentioned herein.

28

Confidential Slide

Mutual Fund Investments are subject to market risks, read

all scheme related documents carefully.

29

Thank you

December-2012

Documents

Reliance Tax Saver (ELSS) Fund - InvestmentKit Docs · Investors can consider investing through SIP in an ELSS plan Source: Bloomberg 6 Only for illustration, past performance may