Reliance Regular Saving Fund (RRSF)-

Balanced Option (An open ended Scheme)

June 2016

Reliance Regular Savings Fund – Balanced Option is

suitable for investors who are seeking

• long term capital growth

• investment in equity and equity related instruments

and fixed income instrument

*Investors should consult their financial advisors if in

doubt about whether the product is suitable for them.

2

Why Invest in a Balanced Fund?

Power of diversification

Participates in equity markets with lower downside risk

Disciplined re-balancing

Tax benefit*

* Tax benefit subject to existing tax laws

3

Ideal for Investors with a requirement of

Growth (Equity) & stability (Debt) over the long term

40

54

-52

76

18

-25

28

7

31

-4

5

25

37

-34

49

14

-14

21

6

25

054 7 9

4 5 7 94

149 5

-60

-40

-20

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD June 2016

Equity Balanced Debt

Power of diversification

4

Past performance may or may not be sustained in future.

Source: MFIExplorer, AMFI. Equity refers to CNX Nifty, Debt refers to Crisil Composite Bond Fund Index & Balanced refers to Crisil Balanced Fund

Index. Returns are absolute. The above chart is an illustration explaining the concept of balanced funds.

Equity has been a good long term wealth creator, However, in 2008,

exposure to debt would have helped in restraining the fall

Diversification across asset class insulates a balanced fund from wide

market swings. Balanced fund participates in equity markets with lower

volatility

50

55

60

65

70

75

80

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Sep

-09

Feb

-10

Jul-1

0

Dec

-10

Apr

-11

Sep

-11

Feb

-12

Jul-1

2

Nov

-12

Apr

-13

Sep

-13

Jan-

14

Jun-

14

Nov

-14

Apr

-15

Aug

-15

Jan-

16

Jun-

16

Eq

uit

y A

lloca

tuin

in R

RS

F -

Bal

ance

d (

%)

CN

X N

ifty

Equity allocation in the last 5 years

CNX Nifty Index (LHS)Equity Allocation (%) (RHS)

Disciplined re-balancing

5

On an average equity allocation in RRSF - Balanced Fund has been

between 70 – 75%

Rebalancing is done based on market conditions & asset allocation

limits*

Saves the hassle & operational cost of individually rebalancing a

portfolio of various individual schemes

Source: MFI Explorer. Period: Mar’10 – Mar’16* Asset allocation limits are provided in the Scheme Information Document of the fund.

Automatic

rebalancing

happens

when equity

allocation

reaches 75%

& fund

manager

books profits

Tax advantage

6

**Balanced funds qualify as equity oriented funds

Short term capital gains of 15%*^

Long term capital gains are exempt*^

** Balanced funds qualify as equity oriented funds subject to 65% of the corpus is invested in domestic equity shares

*The tax rates would be increased by applicable surcharge and education cess. On sale of units of equity oriented funds to the mutual fund, Securities

Transaction Tax (STT) is leviable at the rate of 0.001%”. Short Term Capital Gain would mean gain on sale/redemption/repurchase of mutual fund units held

for not more than 12 months and Long term Capital Gain would mean gain other than Short Term Capital Gain.

^The above taxation is provided the fund is classified as an “equity oriented fund” under section 10(38) of the Indian Income Tax Act, 1961 i.e., (i) where the

investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund;

and (ii) which has been set up under a scheme of a Mutual Fund specified under clause (23D) provided that the percentage of equity shareholding of the fund

shall be computed with reference to the annual average of the monthly averages of the opening and closing figures. In case the fund doesn’t comply with the

above condition it will be subject to taxation applicable to “Other than Equity Oriented Funds”. Please refer to SID of respective scheme for further details.

Disclaimer - Investors are advised to refer to financial advisor / tax advisor independently before investment. The tax benefits above are as per the

current Income Tax laws & rules and any other law for the time being in force

RRSF – Balanced

7

RRSF – Balanced: Investment Style

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

Fine Blend of

large & midcaps

Alpha Creation

from sector &

stock deviations

Moderate

duration

• Equity Level around 70 – 75% of the portfolio

• Large caps at 65% - 75% of the equity portion

• Avoid cyclical/ commodities in midcaps

•Track divergence in valuation between large & midcaps in the

same sector & also across sectors

• Active sector calls

• High Conviction investments – 30 to 35 stocks

• Stock selection within a sector to create differential returns –

benefit from exclusion strategy

•Contrarian view taken for stocks & sectors

• Strong Sell discipline

• Moderate duration strategy (1 to 4 years)

• Maintains quality portfolio (AAA oriented)

• Returns from accrual and capital gains through moderate

duration

RRSF – Balanced: Positioning

9

Aggressive sector calls; conservative stock selection with bias toward large caps

Bottom up stock selection

Alpha generation from key sector over weights/ under weights

No. of stocks: 40 – 45; Top 10 holding 40 – 45%

Large cap biased with tactical Mid Cap allocation:

Allocation as on June 2016- Large cap: 78%; Mid & Small Cap: 22% (of Equity

portfolio)

Debt strategy – Accrual focused with moderate Duration & investments in high grade

instruments

*Gross YTM: 8.02%, Mod Duration: 1.99 yrs, AAA & Equivalent: 80% (of debt portfolio)

Current Asset Allocation: Equity: 71% Fixed Income: 29%

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

Source : Fund Fact Sheet – July 2016

*The weighted average YTM displayed above is for the invested amount of the portfolio ( i.e. excluding other receivables) For the entire portfolio weighted average YTM

Focus Themes

Domestic Revival &

Consumption Investment

Global Advantage*

(Domestic companies having

international exposure in

presence/business)

Private Banks (23%),

Auto / Ancillary (19%),

Media (6%),

Telecom (6%),

Oil & Gas (10%),

Capital Goods (8%)

IT (8%),

Healthcare (6%)

Sectors

RRSF Balanced - Sector Strategy

10

Allocation mentioned above is a percentage of Total Equity Allocation

Note: The current sector strategy may change in future depending on market conditions or fund manager’s views. Source : Fund Fact Sheet – July 2016

Key Differentiators

Focused Portfolio with low dilution

Concentrated bets in large cap with only 16 stocks in NIFTY with

a view to create alpha by exclusion as well

Higher large cap exposure:

Given the current low valuation gap of Large caps vs Mid cap,

the fund maintain higher larger cap.

Mid cap allocations will be increased at appropriate price levels

A fine blend of Aggression and Conservation:

Aggression on concentrated sector bets & stock weights and

conservation in entry price along with disciplined profit booking

11 Confidential: Not for Public Circulation

Summary

Fund maintains a quality portfolio while taking active sector calls &

maintaining price discipline in stock selection

Balanced funds endeavor to combine wealth creation with lower risk

Disciplined re-balancing with lower operational cost

*Tax efficiency

12

Past performance may or may not be sustained in future.

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

* Tax efficiency as subject to existing tax laws

Scheme Facts

13

Top Ten Holdings Top Sectors

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 : Fund Fact Sheet – July 2016

Portfolio of RRSF - Balanced

Holding Weightage (%)

Equities

HDFC BANK LIMITED 8.47

INFOSYS LIMITED 4.33

RELIANCE INDUSTRIES LIMITED 4.17

MARUTI SUZUKI INDIA LIMITED 3.89

TATA MOTORS LIMITED 3.50

ICICI BANK LIMITED 3.15

LARSEN & TOUBRO LIMITED 2.79

MOTHERSON SUMI SYSTEMS

LIMITED 2.72

IDEA CELLULAR LIMITED 2.69

ADITYA BIRLA NUVO LIMITED 2.59

14

Portfolio Details as of June 30, 2016

Sector Allocation Weightage (%)

Banks 16.42

Auto 7.40

Petroleum Products 7.01

Auto Ancillaries 5.79

Software 5.44

Consumer Non Durables 4.71

Pharmaceuticals 4.39

Telecom – Services 4.30

Media & Entertainment 3.98

Construction Project 3.35

Investment

Objective

The primary investment objective of this option is to generate consistent

returns and appreciation of capital by investing in a mix of securities

comprising of equity, equity related instruments & fixed income

instruments.

Equity & Equity Related Instruments

50%-75%

Debt & Money Market Instruments

25% - 50%

Nature of Scheme An Open Ended Scheme

Benchmark Crisil Balanced Fund Index

Asset Allocation

Inception Date 8th June 2005

Scheme Features

Fund Managers : Sanjay Parekh , Amit Tripathi & Jahnvee Shah (For Overseas Investments) 15

Load Structure

Entry Load: Nil*

Exit Load:

10% of the units allotted shall be redeemed without any exit

load, on or before completion of 12 months from the date of

allotment of units. Any redemption in excess of such limit in the

first 12 months from the date of allotment shall be subject to the

following exit load, Redemption of units would be done on First

in First out Basis (FIFO):

1% if redeemed or switched out on or before completion of 12

months from the date of allotment of units

Nil, if redeemed or switched out after completion of 12 months

from the date of allotment of units

*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.

Choice of Plans/Options

i. Growth Plan/ Direct Plan – Growth

Plan

ii. Dividend Plan/ Direct Plan –

Dividend Plan

• Dividend Payout Option

• Dividend Reinvestment Option

• Quarterly Dividend Payout

Option

• Quarterly Dividend Reinvestment

Option

Minimum Application Amount^

Rs 500/-and in multiples of Re. 1 thereafter

Scheme Features

Direct Plan : Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund (i.e. investments not routed through an AMFI

Registration Number (ARN) Holder) ^For additional data, please refer to SID.

16

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.

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 RNLAM 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; RNLAM 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 RNLAM’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 Sponsors, 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.

17

Thank You