•

•

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

Back Bone for any economy – beneficiary and catalyst of economic recovery

Improvement in key macro variables which influences the sector – Fiscal deficit and CAD improving, Strengthening balance of payments, increase in government spending

Government empowering RBI to resolve the bad loans problem

RBI – aiding banks with tools like 5/25 scheme, S4A and some corrective action plans for selected public sector banks

Leveraged corporate in the process of deleveraging by selling assets and strengthening balance sheet

Banking Business is available at very favorable risk-reward

Source: RBI, Govt of India, Bloomberg

Macro Data points improving – Fiscal deficit under control, GDP growth,

Inflation trending down, Higher govt spending, falling interest rate

Customer is King – with mindset change (convenience/service oriented)

, Avg age of borrowers changing

Source: RBI, Govt of India, Bloomberg

Source: RBI, Govt of India, Bloomberg

Inflation under control Core sector sees a recovery in its recent trend (YoY%)

Yield curve trending downwards – near term stabilized CD ratio at 72% - capacity built up well for growth

Source: Spark Research, CGA, GOI, RMF Internal Research

Stress asset recognition – largely done

Pace of downgrades from rating agency slowing

Premium as a % GDP as of fiscal 2015

Households are moving towards financial savings

Source: Spark Research, CGA, GOI, RMF Internal Research

Investment Objective Reliance ETF Bank BeES

The investment objective of Reliance ETF Bank BeES is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty Bank Index. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Positioning – Reliance ETF Bank BeES

• Reliance ETF Bank BeES is an Exchange Traded Fund (ETF) listed on NSE, and invests in stocks of Nifty Bank Index in the same proportion as the underlying Index

• Reliance ETF Bank BeES is less expensive than investing in individual securities of the Nifty Bank Index.

• It provides an opportunity to investors for passively investing in a well-expanded portfolio of top banks as per free float market capitalization, as approximately represented by Nifty Bank Index

• Well Defined Portfolio: Reliance ETF Bank BeES investment strategy & stock selection is clearly defined; it would replicate the Nifty Bank Index & invest only in companies forming the index in the same proportion as the underlying

• Diversification: Buying a single unit currently offers diversification of 12 stocks in the banking sector

• Transparency: Nifty Bank Index constituents are made available in public domain on a daily basis by NSE

• Liquidity: ETF units are traded on exchanges & can be easily liquidated during trading hours (subject to availability of buyer/Seller). Authorised Participants / Large Investors also have the option of coming to the AMC for procurement/sale of units in creation unit sizes (1000 units with 1 unit equivalent to 1/10 of Nifty Bank Index)

• Hedging option available: Reliance ETF Bank BeES allows one to take exposure to the banking sector with relatively less stock specific risk, as risk gets diversified among basket of stocks

• Index track Record: Launched in Sep-2003, base date 1-Jan-2000 the index has a track record of 13 years

NIFTY Bank Index is an index comprised of the most liquid and large capitalised Indian Banking stocks. The index has 12 stocks from the banking sector which trade on the NSE. The Index is computed using free float market capitalization method with base date of Jan 1, 2000 indexed to base value of 1000

Market Representation

The Index represent about 17% of the free float market capitalization of the stocks listed on NSE and 93% of the free float market capitalization of the stocks forming part of the Banking sector universe as on March 31, 2017

Selection Criteria

• Companies ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data are considered eligible

• The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE

• Company's trading frequency should be at least 90% in the last six months

• A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfils the normal eligibility criteria for the index for a 3 month period instead of a 6 month period

Source : NSE Website

Scheme Features

Benchmark Index Nifty Bank Index

Pricing 1/10th of Nifty Bank Index

Fund Manager Payal Kaipunjal (Managing Since May 2014)

Load Structure * Entry & Exit Load : NIL

Minimum application amount

(during ongoing offer period)

Directly with the Mutual Fund: Create / Redeem in exchange of Portfolio Deposit and cash component in Creation Unit Size of 1000 units of the Scheme.

On the Exchange:

1 (one) Unit and in multiples

thereof.

Plans Growth

Listing

Scheme is listed on NSE

(a) The AMC reserves the right to list the Units of the Scheme on any other

exchange

*Please refer to Section IV(D) (Load Structure) of SID for details on Exit Loads applicable on Redemption of Units lesser than Creation Unit Size directly with the Mutual Fund.

12

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

During Ongoing Offer

Note: Data as on 30 April 2017

Sl No. Stock Weightage

1 HDFC Bank Limited 32.59%

2 ICICI Bank Limited 16.91%

3 Kotak Mahindra Bank Limited 11.25%

4 State Bank of India 9.62%

5 Axis Bank Limited 9.02%

6 IndusInd Bank Limited 7.57%

7 Yes Bank Limited 6.21%

8 The Federal Bank Limited 1.93%

9 Bank of Baroda 1.85%

10 Punjab National Bank 1.31%

11 IDFC Bank Limited 0.91%

12 Canara Bank 0.76%

Cash & Other Receivables 0.07%

Total 100.00%

• 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.

• 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 Reliance Nippon Life Asset Management Limited (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.