Reliance Capital Builder Fund III – Series A (A Close Ended Equity Oriented Scheme) Offer for Sale of Units at Rs.10/- per unit during the new fund offer period

Tenure – 3 years from the date of allotment of units

NFO Opens – June 10, 2015

NFO Closes – June 24, 2015

Slide 2

Reliance Capital Builder Fund III – Series A is suitable for investors who are seeking*:

· Long term capital growth

· Investment in diversified portfolio of equity & equity related instruments with small exposure to fixed income

securities

· High risk. (BROWN)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk is represented as:

(BLUE) investors understand

that their principal will be at

low risk

(YELLOW) investors

understand that their principal

will be at medium risk

(BROWN) investors

understand that their principal

will be at high risk

Slide

Market Outlook

3

Slide

Linear growth, exponential opportunity

4

India can double GDP size in <7 years @ mere 12% nominal GDP growth

It took over 50 years for the Indian economy to reach $1 trillion plus, however the next

$1trn could be in less than ~5 years

India’s GDP growth

Source: RMF Internal Research

Slide

Indian Economy … The BIG Picture

5

9th largest economy in the world $2 trillion Nominal GDP as per World Bank

Potential Rapid Growth India took 50 years+ to get to a $1trn economy, however even at mere 13%

nominal GDP growth, it could be a $4trn + economy in 5 yrs

Least vulnerable to External Global Shocks Debt / GDP ratio @ ~120% vs average of 220% for developed/developing

economies

Foreign holdings as a %age of total domestic debt @ 1.5% vs average of 25% of

major large economies

Multi-decade mega trends under development Acceleration in urbanization and urban transport, Transformational digitization, All

round structural governance reforms, preparing for manufacturing renaissance

Source: World Bank, Bloomberg

Slide

Sentiments

Valuations

Fundamentals

The Equity Machinery at Work..

6

Slide

Macro economic trends continue to be positive

7

Source: Bloomberg, CSO

PMI refers to HSBC/Markit manufacturing purchasing managers' index. * Old series considered for GDP Growth

Crude Oil ($/bbl) 109 63

THEN

(June 2014)

NOW

(June 2015)

CPI Inflation 8.6% 4.9%

GDP Growth* 4.7% 5.3%

Foreign Reserves

(USD billion) 265 330

Fiscal Deficit 4.6% 3.99%

PMI 51 53

Slide 8

Rapid Growth around the Corner on account of Reforms:

The Fundamental Story

Financial Inclusion

~100% of eligible India under UIDAI (Unique Identification Authority of India) to lead to

(Direct Benefit Transfer) DBT of all social sector schemes

Project Monitoring Group

clearing high impact projects: projects worth ~ $100 billion cleared so far

All-round Business-easy reforms

Establishing NITI Establishing National Institution for Transforming India – leading to

substantial reduction in bureaucracy

Agriculture reforms

Restructuring FCI (Food Corporation of India), APMC (Agricultural Product Market

Committee) reforms, Soil health cards, Farmer insurance, proposal for National

Irrigation scheme, Easing supply side bottle necks

Housing for all

Affordable housing mission aims for housing for all by 2022

Ambitious foreign trade policy

to grow exports from $466bn in FY14 to $900bn in 2020

Source: Bloomberg, indiabudget.nic.in

Slide 9

Subsidy savings and innovative revenues give Government financial

muscle to spend on the economy

The Fundamental Story

Coal and spectrum auctions have been highly successful (Auction and allotment of 67

blocks has unlocked over $55bn (335k crs ) for states / Telecom spectrum auctions raised

$17.6bn - Over 1 lac crs)

Disinvestments : CY15 targeting to raise Rs. 55k crs i.e $9bn (Several other big

ticket disinvestments in pipeline – Hind. Zinc, SUUTI (Specified Undertaking of the Unit

Trust of India), Coal India, ONGC etc with cumulative potential of $20bn+)

Banks allowed to raise funding for infrastructure with minimum SLR / CRR

requirement

Fuel Reforms has reduced the budgeted fuel subsidy bill by Rs. 30,000 Crs, a drop of

50%

GST implementation will result in improved tax collection, and is expected to add to the

GDP growth

Source: Bloomberg, indiabudget.nic.in

Slide 10

Huge investments totaling Rs. 24 Lakh Crs envisaged over the next few

years

The Fundamental Story

Railways to invest over ~600,000 crores over next 5years on expansion & up

gradation

Digital India - ~1,13,000 crores (Over next 5 yrs)

Roads ~5,00,000 crores (Over next 5 yrs)

Healthcare (National Health Assurance Mission): ~1,60,000 Crore (Over next 4

yrs)

Swacch Bharat Mission : ~2,00,000 crore (Over next 4 yrs)

National Rural Housing Mission: ~3,45,000 crores (by 2022, next 7 yrs)

Solar ( Renewable Energy ) : ~6,00,000 crore ( In next 7 yrs for 100,000 MW )

Source: Bloomberg, indiabudget.nic.in

Slide 11

Combination of low interest rate and economic recovery will lead to

Higher Profit Growth for Indian companies

The Fundamental Story

India is one of the few countries in the world, which could afford to cut interest rates

meaningfully – already 3 rate cuts since Jan-15

Continuing fiscal prudence, disinflationary trends and benign liquidity scenario would

result in lowering of interest rates

Corporate India’s earnings have been subdued in the past due to lower capacity

utilization and higher interest rate scenario

We expect this to turn around, and corporate earnings to grow meaningfully on the

back of operating leverage and financial leverage

Source: Bloomberg, RBI, RMF Internal Research

Slide 12

Reasonable Valuations

The Valuations Story

With the recent market correction, with S&P Sensex trading around 27,000 and

Nifty trading around 8200, valuations are quite reasonable.

India’s market cap / GDP is ~75%. During the peak of 2008, it was over 100%

Based on cyclical low past earnings and our expectation of high growth, markets

are reasonable at ~19x trailing PE

We expect Earnings to pick up in the near term, and markets to capture the

growth in earnings through commensurate returns over the next 3 years

Source: Bloomberg, RMF Internal Research

Slide

SENSEX PE(x) at 16.8x 1yr & 13.6x 2yr forward earnings: still reasonable

Earnings to be a Big Driver!!!

Source : MOSL Estimates.

13

Slide

At ~16.8x 1yr Fwd & ~13.6x 2yr Fwd PE

( Valuations still tad above long-term average on cyclical low earnings )

14

SENSEX – 26,769 ( As on 05-Jun-15 )

FY 15 FY 16E FY 17E

Sensex EPS 1,355 1,605 1,980

Sensex P/E ( Long-term avg. of fwd

multiples - ~15x )

19.9x 16.8x 13.6x

Source : MOSL Estimates., BSE

Valuations remain reasonable

Slide

Can growth surprise..!!!

15

In the previous growth cycle, Earnings became ~3 times in less than 6

years….. Sensex grew 6 times.

Source: Bloomberg, BSE, MOSL Estimates

Previous

Growth Cycle 31st March 2003 8th Jan 2008 Times(x) CAGR

S&P BSE Sensex

EPS 272 833 3.1x 26%

S&P BSE Sensex

Index Level 3,049 20,600 6.7x 49%

Today India is at the cusp of the biggest transformation it’ll

undergo!!

Current S&P BSE Sensex EPS S&P BSE Sensex Index Level

June 5,

2015 1,355 26,769

Past performance may or may not be sustained in future

Slide 16

Brand India has never been more vibrant and appealing than now,

which will augur very well in attracting foreign flows, both FIIs and FDI

The Sentiment Story

Nearly 20 foreign trips have been made by the PM (5 of these for multi-lateral

meetings like BRICS, G-20, SAARC )

USA & China support India's bid for permanent UNSC seat

$35bn investment by Japan over 5 years & expertise in high speed trains

Australia for supplying Nuclear Power fuel - ~500 tns of uranium

Canada agrees to supply 3,000mt of uranium to power Indian atomic reactors

CXO’s of global corporations for investment in India: Satya Nadella (Microsoft),

Indra Nooyi (Pepsico), Mark Zuckerberg & Sheryl Sandberg (Facebook), Jeff

Bezos (Amazon)

$20 billion investment from China

Source: Bloomberg, Economic Times, Hindu Business Line

Slide

Summary

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Building blocks in place. Rapid growth round the corner

Significant improvement in macro parameters

Subsidy savings and innovative revenues give Government financial muscle

to spend on the economy.

Earnings growth could lead to robust market

Combination of low interest rate and economic recovery will lead to higher

profit growth for Indian companies

Huge investments totaling Rs. 24 Lakh Crs envisaged.

Slide 18

Reliance Capital Builder

Fund III – Series A

Twin benefits of Alpha Generation & Higher Market Participation

PRESENTING

Slide

Investment Philosophy

19

Slide

Portfolio Philosophy

20

Twin benefits:

Alpha Generation through Active Fund Management

Higher Market Participation through Long Call Options

Note: The current fund philosophy may change in future depending on market conditions or fund manager’s views.

Diversified Portfolio

Strong track record of creating

alpha over benchmark for the

last 3 years

Call Options

Buy June 2018 Call Options

Direct Equity (80%) Options (20%)

Strategy

Slide

Multi-cap strategy with an aim to participate in investment opportunities

across all sectors and market capitalization

The Fund Manager keeps the discretion to change the mix between large cap

and mid caps

Sector concentration based on market conditions

Use of both top down and bottom up strategies

Top-down

– Focus on macro trends

– Broad sector calls

Bottom-up

– Invest in niche industries

– Invest in companies having potential of sustainable growth

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Equity Strategy

Slide

Call option gives the buyer the right to "call in" (buy) an asset at a specific

price on or before a certain date

The investor profits on a call when the underlying asset increases in price.

The upside is unlimited, whereas the downside is limited to the option

premium

Options can provide enhanced market participation

Investors can buy options just by paying premium instead of the cost of the shares

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Call Option for Higher Equity Participation

Unlimited

Upside

Limited

Downside

Slide

RMF Fund Management Expertise

23

Slide

RMF Fund Management Strength

Large & Experienced Team:

6 Fund Managers including CIO Equities supported by 15 member analyst

team.

Cumulative experience of over 350 years in Indian Equities of which

collectively over 100 years with RMF

Strong In House Research:

Active coverage of over 450 companies (> 1100 co’s tracked)

Analyst Team subdivided with specialists covering all key areas:

– Sectors & Companies

– Quantitative Analysis

– Economics & Macro

– Technical Analysis

Our research capability empowers the Fund Manager to be BOLD in identifying

high growth potential stocks & manage the RISK associated with it

(Past performance may or may not be sustained in future)

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Slide

Scheme Facts

25

Slide

Scheme Features

26

Investment

Objective

Plans & Options

Minimum

Application

Amount

The investment objective of the scheme is to provide capital appreciation to the

investors, which will be in line with their long term savings goal, by investing in a

diversified portfolio of equity & equity related instruments with small exposure to

fixed income securities. Although, the objective of the Fund is to generate optimal

returns, the objective may or may not be achieved.

Growth & Dividend Payout Option

Direct Plan – Growth & Dividend Payout Option

Rs 5,000 and in multiples of Re 1 thereafter

Benchmark S&P BSE 200 Index

Asset Allocation Diversified Equity & Equity Related Instruments: 80%-100%

Debt & Money Market Instruments: 0%-20%

Load Structure

Entry Load - Nil.

Exit Load: Nil Since the scheme shall be listed on BSE or any other recognised

Stock Exchange, Exit load shall not be applicable.

Fund Manager Omprakash Kuckian & Jahnvee Shah (Overseas Investments)

Slide

Scheme Specific Risk Factors: Trading volumes and settlement periods may restrict liquidity in equity and debt investments.

Investment in Debt is subject to price, credit, and interest rate risk. 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 investment in derivatives, foreign securities or script lending as may be permissible by the Scheme Information

Document.

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.

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 RCAM 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; RCAM 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 RCAM’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.

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Thank you