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CPSE EXCHANGE TRADED

SCHEME (CPSE ETF)

(An Open-ended Index Exchange Traded Scheme)

(Rajiv Gandhi Equity Savings Scheme (RGESS) Qualified Scheme)

CPSE ETF

Managed by Goldman Sachs Asset Management (India) Private Limited

(An Open-ended Index Exchange Traded Scheme)

(Rajiv Gandhi Equity Savings Scheme (RGESS) Qualified Scheme)

This product is suitable for investors who are seeking* :

• long-term capital appreciation.

• investment in securities covered by CPSE Index.

• high risk. (BROWN)

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

Note: Risk may be 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

1

I. Introduction to Exchange Traded Funds (ETFs)

II. Development of international and India ETFs market

III. Advantages of ETF

IV. Disinvestment through an ETF

V. CPSE Index

VI. CPSE Exchange Traded Scheme

Appendix

Table of Contents

2

I. Introduction to Exchange Traded Funds (ETFs)

3 3

Introduction to Exchange Traded Funds (ETFs)

An Exchange Traded Fund (ETF) is primarily a mutual fund scheme which is listed and traded

on a stock exchange. An ETF can invest in:

Equities – replicating the composition and performance of an equity index (e.g. CNX Nifty, CNX

Junior Nifty)

Commodities – tracking the actual price of a commodity (e.g. Gold)

Money market instruments – which include short-term government securities and call money

4

II. Development of international and India ETFs market

5

Growth of ETFs Internationally

• - AUM in USD Billion. Source: ETFGI Monthly Newsletter Year End 2013.

• This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or

investment advice. Please see additional disclosures.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

AUM* 74 105 142 212 310 417 580 807 716 1041 1313 1355 1754 2254

No. of ETFs 94 208 283 288 334 450 724 1184 1613 1961 2474 3025 3337 3594

0

400

800

1200

1600

2000

2400

2800

3200

3600

4000

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

No

. of E

TF

s A

UM

$ B

illio

n

6

Growth of ETFs in India

Source : Based on data collated from AMFI website i.e. www.amfiindia.com

* - Average AUM for the Quarter. (For other periods amount is Average AUM for Month)

This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or

investment advice. Please see additional disclosures.

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10* Dec-11* Dec-12* Dec -13*

Avg. AUM 7 168 568 2920 7811 7142 2671 2410 4981 10852 13380 10959

No of ETFs 1 5 6 6 6 12 16 18 26 33 34 39

0

5

10

15

20

25

30

35

40

45

0

2000

4000

6000

8000

10000

12000

14000

No

. of E

TF

s

Av

g.

AU

M (

Rs. in

Cro

res)

7

III. Advantages of ETF

8

Familiar ground – best of both worlds

Like a stock…

Trading flexibility intraday on the exchange

Real time price

Put limit orders

Minimum trading lot is just 1 unit

Delivery into your Demat account

ETF

Index fund Stocks

Like a fund…

Constructed to track an index

Open ended mutual fund

Lower expense ratio generally as compared to

an active equity fund

Lower turnover

More transparent

9

Why invest via an ETF?

Liquidity Components of an index have more liquidity

ETF liquidity enhanced via direct creation and redemption

Increased transparency Investors can generally see an ETF composition at any given time

Transaction and management cost

Increased trading

flexibility

Continuous pricing on the exchange throughout market hours

Minimum transaction size (1 unit)

Return potential Likely to capture market average return at low cost

Lower expenses Benefit from lower expense ratios due to lower portfolio management,

trading and operational expenses

10

IV. Disinvestment through an ETF

11

Disinvestment through an ETF - potential benefits

Ability to participate in the long-term development of India, by purchasing stocks in Infrastructure and

Natural Resources arena

Provides small retail and HNI investors with the ability to diversify exposure across a number of Public

Sector companies through a single instrument

Ease and flexibility of trading given ETFs can be transacted on terminals across the country

Enables large investment in blue chip Public Sector enterprises without the constraint of market liquidity

on the underlying individual stock

Efficient cost structure for investors given lower expense ratios than mutual funds, lower transaction costs

due to low STT(Securities Transaction Tax), and eligibility under the RGESS scheme

High transparency allowing investors to make informed decisions

12

V. CPSE Index

13

CPSE Index

CPSE Index is constructed in order to facilitate GOI’s (Government of India) initiative to dis-invest some of its

stake in selected CPSEs through the ETF route. The index values are to be calculated on free float market

capitalization methodology. The index has base date of 01-Jan-2009 and base value of 1000. Weights of

index constituent shall be re-aligned (i.e. capped at 25%) every quarter effective 2nd Monday of February,

May, August and November.

Stock selection criteria’s for the CPSE Index:

Included in the list of CPSEs published by the Department of Public Enterprise.

Listed at National Stock Exchange of India Ltd. (NSE).

Having more than 55% government holding (stake via Govt. of India or President of India) under promoter

category.

Companies having average free float market capitalization of more than 1,000 crore for six month period

ending June 2013 are selected.

Have paid dividend of not less than four per cent including bonus for the seven years immediately

preceding or for at least seven out of the eight or nine years immediately preceding, are considered as

eligible companies as on cut-off date i.e. 28-Jun-2013.

14

CPSE Index - Constituents

Data as on 7th March 2014

Index will undergo review (Exclusion or replacement) in case of corporate actions such as merger, de-merger, spinoff etc. Or upon formal request received from the ETF issuer AMC

Industry allocation as per AMFI classification

Company Name AMFI Sector Weightage (%)

Oil & Natural Gas Corporation Ltd. Energy 26.72

GAIL (India) Ltd. Energy 18.48

Coal India Ltd. Metals 17.75

Rural Electrification Corporation Ltd. Financial Services 7.16

Oil India Ltd. Energy 7.04

Indian Oil Corporation Ltd. Energy 6.82

Power Finance Corporation Ltd. Financial Services 6.49

Container Corporation of India Ltd. Services 6.40

Bharat Electronics Ltd. Industrial Manufacturing 2.00

Engineers India Ltd. Construction 1.13

15

CPSE Index – Sector allocation

Data as 7th March 2014.

Total allocation may not add to 100% due to rounding. Industry allocation as per AMFI classification

Construction 1%

Energy 59%

Financial Services 14%

Industrial Manufacturing

2%

Metals 18%

Services 6%

16

CPSE Index – analysis

Index Name P/E Ratio P/B Ratio Dividend Yield

CPSE Index 9.8 1.8 3.77

CNX Nifty Index 17.67 2.97 1.49

CNX Nifty Junior Index 15.49 2.22 1.45

CNX 100 Index 17.31 2.83 1.49

CNX 500 Index 17.93 2.44 1.52

S&P BSE SENSEX 17.21 2.55 1.45

Data as 28th February 2014.

Source : www.nseindia.com, www.bseinida.com

17

VI. CPSE Exchange Traded Scheme

18

CPSE Exchange Traded Scheme (CPSE ETF)

Investment objective

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

the total returns of the Securities as represented by the CPSE Index, by investing in the Securities which

are constituents of the CPSE Index in the same proportion as in the Index. However the performance of

the Scheme may differ from that of underlying index due to tracking error

Investment pattern

The above stated percentages are indicative and not absolute.

There is no guarantee that these objectives will be met.

Instruments

Indicative Allocation

(% of net assets) Risk Profile Minimum Maximum

Securities covered by CPSE Index 95% 100% Medium to High

Money Market Instruments (with maturity not exceeding 91

days), including CBLO, cash & cash equivalents. 0% 5% Low to Medium

19

CPSE Exchange Traded Scheme (CPSE ETF)

Type of scheme

An Open Ended Index Scheme, listed on the Exchanges in the form of an Exchange Traded Fund (ETF)

tracking CPSE Index.

RGESS

The Scheme is in compliance with the provisions of Rajiv Gandhi Equity Savings Scheme, 2013

(‘RGESS’)

20

CPSE ETF

Scheme Features For Non Anchor Investors For Anchor Investors

NFO Opens on 19th March 2014 18th March 2014

NFO Closes on 21st March 2014 18th March 2014

Benchmark Index CPSE Index

Pricing 1/100th of CPSE Index

Fund Manager Payal Kaipunjal For the performance of other schemes managed by the same fund manager please refer to slide 31

Load Structure Entry & Exit Load : NIL* (Refer Note # 1 on slide 27)

Category of Investors

(during NFO) (Refer note # 2 on slide 27)

• Retail Individual Investor

• Qualified Institutional Buyer or (QIB)

• Non Institutional Investors

• Anchor Investors

Minimum application amount

(during NFO)

Retail Individual Investor:

Min amt. of Rs 5,000 and in

multiples of Rs. 1 thereafter

Non Institutional Investors /

QlB

Min amt. of Rs. 2,00,001/- and

in multiples of Rs 1/- thereafter.

For Anchor Investor:

Min amt. of Rs.10 Crores and

in multiples of Rs. 1 thereafter

(Refer note # 3 on slide 27)

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 1 lakh units of the Scheme.

On the Exchange:

1 (one) Unit and in multiples thereof.

Plans Growth

Listing Scheme will be listed on or before 11th April 2014 on NSE and BSE(a) (a) The AMC reserves the right to list the Units of the Scheme on any other exchange

Maximum Amount to be Raised during NFO Rs. 3000 crores (Refer Note # 4 on slide 27)

*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.

21

CPSE ETF – Discount offered by GOI

Discount during NFO

Discount of 5% on the “Reference Market Price” of the underlying CPSE Index shares shall be offered to

CPSE ETF by GOI to all investors during NFO.

Reference Market Price

It is the price determined based on the average of full day volume weighted average price on the NSE

during the Non Anchor Investor NFO Period (inclusive of Non Anchor Investor NFO Period open as well

as close date) for each of the index constituents of the CPSE Index.

Note - the above mentioned discount on the ‘Reference Market Price’ may not be a discount to the

closing market price of the underlying shares of CPSE Index on the Allotment Date. (Refer

illustration on next slide)

22

CPSE ETF – Discount offered by GOI

Illustration of “Reference Market Price”– assuming 5% discount offered by GOI

Full day volume weighted average price (VWAP) on the NSE will be considered during the Non Anchor Investor NFO Period for

each of the constituents of the Index, namely stock A, stock B and stock C :

Non Anchor NFO Period Full day VWAP

Stock A (Rs.)

Full day VWAP

Stock B (Rs.)

Full day VWAP

Stock C (Rs.)

Day 1 (NFO Opens) 10 21 50

Day 2 11 24 53

Day 3 12 26 52

Day 4 12 25 54

Day 5 (NFO Closes) 11 24 55

Average of full day VWAP (Rs.) for the above period 11.2 24 52.8

Discount offered by GOI to the Scheme on the average

of full day VWAP 5% 5% 5%

Discounted price at which the Scheme would purchase

the stocks from the GOI out of the NFO proceeds 10.64 22.8 50.16

Closing market price of the relevant stock on the NSE

on the Allotment Date 9 24 45

23

CPSE ETF – Additional loyalty units

Additional loyalty units will be offered only to the eligible Retail Individual Investor that invests during the

NFO Period

One Loyalty Unit will be allocated for every 15 (fifteen) Units held continuously from the Allotment Date to

the Loyalty Unit Record Date, which will be 1 year from the NFO allotment date.

Eligibility criteria for additional loyalty units

the Units must have been held as per the records of Registrar in the name of the same Unit holder

continuously from the NFO Allotment Date* to the Loyalty Unit Record Date

for calculation of the Loyalty Units, the lowest Unit balance held by the Unit holder at any point of time

in between the NFO Allotment Date to the Loyalty Unit Record Date (both days included), which is at

par or below the number of Units allotted to the Unit holder on the Allotment Date will be considered for

determining the Loyalty Units.

.

*Allotment date is the date when units are allotted to investor post NFO and is mentioned in account statement.

.

24

CPSE ETF – Tap structure

Tap structure will allow Investors/ Unit holders to subscribe for Units of the Scheme at a predetermined

discount during the ongoing offer period

The maximum number of Units available for subscription during calendar quarter under the Tap Structure -

“Tap Issue Limit”, will be announced at least 5 Working Days before the commencement of that quarter

Investors can purchase units in creation unit size of 1 lakh units only in cash with the Scheme and in

multiples thereof.

If the “Tap Issue Limit is reached at any particular time on any particular working day during the quarter,

the Tap Structure shall be immediately stopped for that particular quarter.

A discount of specified percentage (%) on the “Tap Structure Reference Market Price” of the underlying

shares of CPSE Index shall be offered by GOI to the Scheme.

This discount would be announced at least 5 Working Days before the opening of Tap Structure for each

quarter and will be published by way of notice every quarter and displayed on the Mutual Fund website

(www.gsam.in) / Investor Service Centres.

Discount on the underlying shares of CPSE Index will be calculated on the basis of full day volume

weighted average price (VWAP) on the NSE on the subscription day.

Please refer to Section III(B) (Ongiong offer details) of SID for further details on Tap Structure.

25

CPSE ETF – Mechanism

All Investors Goldman Sachs

Mutual Fund Government of India

Cash Cash

Basket of

Stocks CPSE ETF

Units

During New Fund Offer

During Tap Structure

Authorised Participant /

Large Investors

Goldman Sachs

Mutual Fund Government of India

Cash Cash

Basket of

Stocks CPSE ETF

Units

26

CPSE ETF – Mechanism during on going offer except tap structure

Secondary market

Seller

Stock Exchange

CPSE ETF Cash

Cash CPSE ETF

Primary market

Authorized

participants /

financial

institutions

Subscription/

redemption

in-kind

Buy / sell

Market making /

arbitrage

Buyer Fund

27

CPSE ETF – Notes

1) Payment of Transaction Charges – For applications received during the NFO Period, the AMC/ Mutual Fund may deduct transaction

charges of Rs. 150 (for first time investors across mutual funds) or Rs. 100 (for existing investors across mutual funds) from the Subscription

amount, which would be paid to the empanelled AMFI registered Distributor / agent of the Investor (in case the empanelled AMFI registered

Distributor / agent has “opted in” to receive the transaction charge for this type of product) and the balance amount shall be invested in the

Scheme. Please refer to Section IV (C) (Transaction Charges) of SID for further details.

2) Retail Individual Investors (including HUFs applying through their Karta’s and NRIs) who have applied for CPSE ETF Units for an amount not

exceeding Rs 2,00,000 (Rupees Two lakhs). Non Institutional Investor - All investors who are not Qualified Institutional Buyers or Retail

Individual Investors and who have applied for the Units for an amount more than Rs 2,00,000 (Rupees Two Lakhs). Qualified Institutional

Buyer - Qualified Institutional Buyer as defined under Regulation 2(1)(zd) of the SEBI (Issue of Capital and Disclosure Requirements)

Regulations, 2009, as amended. Anchor Investor - A Qualified Institutional Buyer, applying under the Anchor Investor Portion, with a minimum

application amount of Rs. 10 Crores (Rupees Ten Crores). Refer to Multiple Applications by Same Investor under Section IIII(A) of SID.

3.) Anchor Investor Portion – This portion shall not exceed 30% (Thirty percent) of the Maximum Amount to be Raised.

In case of under Subscription in this category, the under subscribed portion will be available for spill-over from the Non Anchor Investor Portion at

the discretion of the AMC

Anchor Investors shall pay a margin of at least 25% (Twenty Five percent) of the Subscription amount during the Anchor Investor NFO period,

with the balance to be paid on or before the closure of the Non Anchor Investor NFO Period.

If the Anchor Investor does not pay the balance amount before the closure of the Non Anchor Investor NFO Period, then the margin amount paid

by the Anchor Investor shall be forfeited and credited to the Scheme.

The Anchor Investor will not be able to withdraw / modify its application once submitted to the AMC.

Units allotted to Anchor Investors during the NFO period shall be locked-in for a period of 30 days from the Allotment Date.

4.) Maximum Amount to be Raised during NFO –

Rs. 3000 Crores ,subject to maximum of 3% of the paid up share capital of each of the constituents of the CPSE Index.

28

Appendix

29

GSAM ETF Basket – GS BeES

GS BeES

Fixed Income Equity Commodity

GS Liquid BeES GS Gold BeES

International

GS Nifty BeES

GS Junior BeES

GS Bank BeES

GS PSU Bank BeES

GS Shariah BeES

GS Infra BeES

GS Hang Seng BeES

All GS BeES are traded on capital market segment of NSE & BSE

Domestic

30

GS BeES – Product label

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

(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

Note: Risk may be represented as:

Product This product is suitable for

investors who are seeking*:

Product This product is suitable for

investors who are seeking*:

GS Nifty BeES

long-term capital appreciation.

investment in securities covered by CNX

Nifty Index.

high risk. (BROWN)

GS Shariah BeES


investment in securities covered by CNX Nifty

Shariah Index.

high risk. (BROWN)

GS Junior BeES



Nifty Junior Index.

high risk. (BROWN)

GS Hang Seng BeES


investment in securities covered by Hang

Seng Index.

high risk. (BROWN)

GS Bank BeES



Bank Index.

high risk. (BROWN)

GS Infra BeES



Infrastructure Index.

high risk. (BROWN)

GS PSU Bank BeES



PSU Bank Index.

high risk. (BROWN)

GS Liquid BeES

current income with high degree of liquidity.

investment in Money Market and Debt

Instruments.

low risk. (BLUE)

GS Gold BeES

portfolio diversification through asset

allocation.

investment in Physical Gold.

high risk. (BROWN)

31

Performance of Funds managed by Fund Manager

Returns for one year and less than one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at the prevailing NAV.

Distribution taxes are excluded while calculating the returns. Bonus declared has been adjusted. Incase, the start/end date of the concerned period is non business date (NBD), the NAV of

the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000 made at the beginning of 12 month period as at

the end of that period scheme performance. Additional benchmark for equity schemes - source : National Stock Exchange of India. Additional benchmark for Debt scheme - source : Crisil.

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Fund manager: Payal Kaipunjal (Incase of GS Hang Seng BeES, for debt securities)

Particulars

Absolute

Returns (%)

PTP Returns

(INR)

Absolute

Returns (%)

PTP Returns

(INR)

Absolute

Returns (%)

PTP Returns

(INR)

CAGR

Returns (%)

PTP Returns

(INR)

GS Junior BeES 5.13 10513 48.80 14880 -31.64 6836 22.89 93905 21-Feb-03

CNX Nifty Junior Index (Benchmark) 4.81 10481 48.08 14808 -31.87 6813 22.71 92400

CNX Nifty Junior Total Returns Index 6.03 10603 49.84 14984 -31.11 6889 24.41 107345

CNX Nifty Index (Additional Benchmark) 6.76 10676 27.70 12770 -24.62 7538 17.77 59129

GS PSU Bank BeES -28.56 7144 44.20 14420 -41.07 5893 1.07 10680 25-Oct-07

CNX PSU Bank Index (Benchmark) -30.44 6956 40.63 14063 -41.82 5818 -0.46 9720

CNX PSU Bank Total Returns Index -28.71 7129 43.50 14350 -40.87 5913 1.55 10999


GS Hang Seng BeES 18.36 11836 30.33 13033 -2.60 9740 13.78 16368 9-Mar-10

Hang Seng Index (Benchmark) 2.87 10287 22.91 12291 -19.97 8003 2.50 10990

Hang Seng Total Returns Index (INR) 19.64 11964 31.87 13187 -1.88 9812 14.77 16916


Allotment Date

Dec 31, 2012 to Dec 31,

2013

Dec 31, 2011 to Dec 31,

2012

Dec 31, 2010 to Dec 31,

2011Since Inception

32

Disclaimers

For more details please refer the SID, SAI, Key Information Memorandum and Application Form which are available at the office of the AMC or can be downloaded from www.gsam.in

NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared

or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document . The investors are advised to refer to the Scheme

Information Document for the full text of the Disclaimer Clause of NSE.

Information gathered & material used in this document is believed to be from reliable sources. However, Goldman Sachs Asset Management (India) Private Limited does not warrant the

accuracy, reasonableness and/or completeness of any information.

Confidentiality

No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an

employee, officer, director, or authorized agent of the recipient.

THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR

UNLAWFUL TO DO SO.

Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without

independent verification, the accuracy and completeness of all information available from public sources.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current as of

the date of this presentation and may be subject to change, they should not be construed as investment advice.

The website links provided are for your convenience only and are not an endorsement or recommendation by GSAM of any of these websites or the products or services offered. GSAM is

not responsible for the accuracy and validity of the content of these websites.

Index Benchmarks

Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or expenses which would

reduce returns. Investors cannot invest directly in indices.

It is to be distinctly understood that the permission given by NSE/BSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved

by NSE/BSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information

Document for the full text of the ‘Disclaimer Clause of NSE’ and ‘Disclaimer Clause of BSE’

Mutual Fund Investments are subject to market risks,

read all scheme related documents carefully.

33

Disclaimers (cont’d)

The indices referenced herein have been selected because they are well known, easily recognized by investors, and reflect those indices that the Investment Manager believes, in part based

on industry practice, provide a suitable benchmark against which to evaluate the investment or broader market described herein. The exclusion of “failed” or closed hedge funds may mean

that each index overstates the performance of hedge funds generally.

References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only and do not imply that the portfolio

will achieve similar results. The index composition may not reflect the manner in which a portfolio is constructed. While an adviser seeks to design a portfolio which reflects appropriate risk

and return features, portfolio characteristics may deviate from those of the benchmark.

Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss

of principal may occur.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

This material has been prepared by GSAM and is not a product of Goldman Sachs Global Investment Research. The views and opinions expressed may differ from those of Goldman Sachs

Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their financial advisors before buying or selling any

securities. This information may not be current and GSAM has no obligation to provide any updates or changes.

Tracking Error (TE) is one possible measurement of the dispersion of a portfolio’s returns from its stated benchmark. More specifically, it is the standard deviation of such excess returns. TE

figures are representations of statistical expectations falling within “normal” distributions of return patterns. Normal stat istical distributions of returns suggests that approximately two thirds of

the time the annual gross returns of the accounts will lie in a range equal to the benchmark return plus or minus the TE if the market behaves in a manner suggested by historical returns.

Targeted TE therefore applies statistical probabilities (and the language of uncertainty) and so cannot be predictive of actual results. In addition, past tracking error is not indicative of future

TE and there can be no assurance that the TE actually reflected in your accounts will be at levels either specified in the investment objectives or suggested by our forecasts.

This material is issued in or from India by Goldman Sachs Asset Management (India) Private Limited (GSAM India)

© 2014 Goldman Sachs. All rights reserved.

123529.OSF.MED.OTU

Mutual Fund Investments are subject to market risks,

read all scheme related documents carefully.

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