(Formerly Reliance Mutual Fund)

Aim to have a Portfolio

Suited for all Market Conditions
Gold Debt Domestic Equity International Equity

350.5

300.5

250.5
Rebased Values

200.5

150.5

100.5

50.5
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
International Equity Gold Debt Domestic Equity

Past performance may or may not be sustained in future and the same may not necessarily
provide the basis for comparison with other investment.
Source: Bloomberg.

Nippon India Multi Asset Fund

(An open ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETF)

A Multi Asset Fund which invests in a combination of Equity, Debt, International Equity and Gold ETF/
Exchange Traded Commodity Derivatives (ETCD) and other ETCDs as permitted by SEBI from time to time.
These asset classes are weakly/ negatively co-related and tend to perform at different periods of time.
Aim to benefit from portfolio diversification.
*Gold Futures prices from MCX

NFO Open Date: 7th August 2020 | NFO Close Date: 21st August 2020
Contact your financial advisor I Visit www.nipponindiamf.com
This product is suitable for investors who are seeking*
 Long term capital growth
 Investment in equity and equity related securities, debt & money market
Charges applicable.

instruments and Exchange Traded Commodity Derivatives and Gold ETF

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

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
 Over the last decade we have seen divergent returns among Asset classes

Winners keep changing among Asset classes

Gold Equity Debt

2019
24.6% 10.9% 9.5%
Gold Debt Equity
2018
7.6% 6.7% 2.6%
Equity Gold Debt
2017
33.4% 6.3% 6.0% Top Performers:
Gold Debt Equity
2016 *Gold - 5 years | Equity – 3 years | Debt – 2 years
10.1% 9.8% 5.0%
Debt Equity Gold
2015
8.7% -2.0% -6.6% Different Asset Classes outperform in different years.
Equity Debt Gold
2014
34.2% 10.5% -6.0%
Debt Equity Gold
2013
8.3% 7.6% -7.9%
Equity Gold Debt
2012
32.0% 12.4% 9.1%
Gold Debt Equity
2011
32.5% 7.9% -24.8%
Gold Equity Debt
2010
24.2% 17.2% 4.7%
Data for last 10 yrs
Note: 1) *Gold Futures prices from MCX; 2) For Equity, S&P BSE 100 TRI returns are considered; 3) For Debt, CRISIL Short Term Bond
Fund Index returns are considered; 4) Source: Bloomberg, MFI Explorer
The scheme will invest in Gold ETF/ETCD/Sovereign Gold Bonds. Investors are requested to note that investment into physical Gold is
neither envisaged nor is part of the core investment strategy in the scheme.

Even within asset classes there is significant variation in returns

Equity
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Large Large Small Mid Mid Small Large Mid Large Mid
Cap Cap Cap Cap Cap Cap Cap Cap Cap Cap
10.9% 2.6% 61.0% 9.3% 8.7% 71.1% 7.6% 40.4% -24.8% 17.7%
Mid Mid Mid Large Small Mid Mid Small Mid Small
Cap Cap Cap Cap Cap Cap Cap Cap cap Cap
-2.1% -12.5% 50.0% 5.0% 7.7% 56.9% -4.0% 34.8% -33.3% 17.3%
Small Small Large Small Large Large Small Large Small Large
Cap Cap Cap Cap Cap Cap Cap Cap Cap Cap Hence, staying
-5.9% -22.8% 33.4% 2.7% -2.0% 34.2% -9.7% 32.0% -41.7% 17.2%
invested across
Debt Asset classes is
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 quintessential.
Long Short Short Long Short Long Short Long Short Short
Term Term Term Term Term Term Term Term Term Term
Debt Debt Debt Debt Debt Debt Debt Debt Debt Debt
10.5% 6.7% 6.0% 14.9% 8.7% 14.1% 8.3% 10.6% 7.9% 4.7%
Short Long Long Short Long Short Long Short Long Long
Term Term Term Term Term Term Term Term Term Term
Debt Debt Debt Debt Debt Debt Debt Debt Debt Debt
9.5% 6.0% 0.0% 9.8% 7.4% 10.5% -0.7% 9.1% 1.9% 3.1%

Top Performers in Equity:

Top Performers in Debt:
 Large Caps - 4 years
 Short Term Debt - 6 years
 Mid Caps – 4 years
 Long Term Debt – 4 years
 Small Caps – 2 years
Note: 1) For Large Cap, S&P BSE 100 TRI returns are considered; 3) For Mid Cap, S&P BSE Mid Cap TRI returns are considered; 4) For Small Cap,
S&P BSE Small Cap TRI returns are considered; 5) For Short Term Debt, Crisil Short Term Bond Fund Index returns are considered; 6) For Long
Term Debt, Crisil 10 yr Gilt Index returns are considered; 7) Source: MFI Explorer.
Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other
investment.
How does Asset Allocation help?

1. Asset classes follow different cycles over different time periods

2. It is difficult to predict which Asset class will outperform
3. Asset allocation is considered to be the key driver of portfolio returns
4. Helps in Portfolio Diversification
5. Could lead to Optimal Returns

Asset Allocation is considered to be Key to Long term wealth creation

Stock Selection
& Others 10%
#
According to a Study in 2001 “More than
90% of the portfolio returns are based on
asset allocation decisions”. Asset
Allocation 90%

#
Source: Does Asset Allocation Policy Explain 40%, 90% or 100% of Performance?

Presenting
Nippon India Multi Asset Fund (NIMAF)
(An open ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETF)

A one stop solution which may help to reap benefit of Growth of Equity, Stability of
Debt & Diversification from Commodities

Investment Objective & Asset Allocation

The primary investment objective of Nippon India Multi Asset Fund is to seek long term capital
growth by investing in equity and equity related securities, debt & money market instruments
and Exchange Traded Commodity Derivatives and Gold ETF as permitted by SEBI from time to
time
INDICATIVE ASSET ALLOCATION

50 – 80% 10 – 20% 10 – 30%

Equity & Equity related Debt & Money Commodities*
securities (including Overseas Market Instruments
Securities/Overseas ETF)

*Includes Gold ETF and Exchange Traded Commodity Derivatives (ETCDs) where participation
will be limited to derivatives contracts in Metals, Energy and Indices as permitted by SEBI from
time to time.
Rebalancing will be done on a Quarterly basis to adjust for any deviation in asset
allocation due to any mark to market movement.
 Investment Strategy & Probable Allocation

1. Indian Equity Investment (50%)

Stock selection
Multi Cap Bottom Up based on gap No bias towards Focus on the
investment selection between fair growth or value scalability of the
strategy approach value and stocks business model
market price

Large Caps: 50-70%; Rest Terminal Value & Alpha creation

Portfolio predominantly in Mid Caps; Business scalability through stock
Construct of Equity portfolio –key criteria selection

The above exposure is subject to change within the limits of SID depending on the market conditions.

Domestic Equity - Investment Framework

 Active Share <50  Stock Concentration*
 Deviation from Benchmark in the Top Sectors  Not more than 4% in any C rated stocks
 Banks & Financials – not more than 25%  Cumulative exposure to C rated stocks: 35% (in line with index)
 Energy, IT and FMCG – not more than 40%  Cumulative exposure to D rated stocks < 3%

Actively managed with an attempt to generate consistent returns along with reasonable alpha.

*Based on Internal assessment of Business Risk, stocks have been classified under four rating buckets: A,B,C,D with A being the best and D being
the worst. While it may appear all the investments should be concentrated in the A or B bucket, the stocks may not be reasonably priced. At the
same time, stocks rated C or D may offer opportunities at reasonable valuations.
The above exposure is subject to change within the limits of SID depending on fund managers views and the market conditions.

2. Overseas Equity Investment (20%)

MSCI World Index will be the Overseas Equity investment could

Investment across geographies based on investment universe. It tracks act as an effective diversification
prevailing view/tactical opportunity performance of stocks/sectors tool as well as benefit from any
across 23 developed markets. currency depreciation

Source: www.msci.com, Data as of June 2020

Overseas Equity - Investment Framework

Investments with reference to MSCI World Index i.e. 65% weight to US, 20% to Japan & Europe including UK, and rest in Others

Fund would broadly keep the country exposures similar – especially to US and Europe

Fund would have approximately 25 stocks – 15 in US, 5 in Europe including UK and the rest in others

The above exposure is subject to change within the limits of SID depending on fund managers views and the market conditions.
 Asset Allocation beyond Equity & Debt:
Commodity an important tool for Diversification

3. Commodities – A Distinct & Unique Asset Class (15%)

Upside Potential owing to Considered as Safe Haven

inherent demand during Economic Distress

Hedge against Curren-

Hedge against Inflation
cy Depreciation

Diversification within commodities

Offers Portfolio – Metals, Energy & Indices as
Diversification permitted by SEBI from time to
time

Commodities – A Distinct & Unique Asset Class

1 2 3
Investment in Exchange
Flexibility to invest in Traded Commodity Gold$ will be a key
various Commodities@ to Derivatives (ETCDs) of diversifier given low
provide diversification Metals, Energy and correlation to Equity &
even within commodities Indices as permitted by Debt
SEBI from time to time
@
as permitted by SEBI from time to time

Commodity Investment Framework

Flexibility to invest in Gold$ will be a key

Investment will be
various Commodities to diversifier given low
predominantly into Gold
provide diversification correlation to Equity &
ETF/ETCD.
even within commodities Debt

 Minimum 10% exposure to Gold through ETF or ETCD route. Fund may also invest in Sovereign
Gold Bonds.

 5% allocation to other commodities: Silver, Energy, Commodity Indices & other commodities
through ETCDs as permitted by SEBI from time to time.

 In absence of any opportunities, Fund may follow arbitrage strategy in commodities.

$
The scheme will invest in Gold ETF/ETCD/Sovereign Gold Bonds. Investors are requested to note that investment into physical Gold is
neither envisaged nor is part of the core investment strategy in the scheme.
The above exposure is subject to change within the limits of SID depending on fund managers views and the market conditions.
 4. Fixed Income Investment (15%)

Debt portfolio will be managed with a moderate duration profile, following a duration range of
1.25 – 2.25 years.

Predominantly invest in Good credit quality assets

Issuer: LT rating min 85% AAA, rest AA+ & AA
Instrument: AAA/ A1+ >=85%, short term not below A1+

Focused on Accrual Income and could outperform in a bull steepening environment

Endeavor to capture short end of the yield curve with a focus on stable returns with moderate
volatility.

Investment Rationale

Fund seeks to A one stop

provide solution which
diversification Benefit from Tax may help to reap
Fund also offers benefit of
across asset diversification efficiency
classes with an through Growth of Equity,
under respective Stability of Debt
aim to provide asset classes rebalancing
superior risk within the Fund & Diversification
adjusted returns from
Commodities

Correlation between Asset classes

Domestic Overseas Commodity
Correlation Debt
Equity Equity
Domestic Equity 1.00 0.19 0.10 -0.01
Overseas Equity 1.00 -0.05 0.46
Debt 1.00 -0.60
Commodities 1.00

Weak or negative correlation between asset classes helps in Portfolio Diversification

Note: 1) For Equity, S&P BSE 100 TRI returns are considered; 2) For Debt, CRISIL Short Term Bond Fund Index returns are considered; 3) For Overseas Equity, returns
of MSCI World Net Return Index (in INR terms) are considered; 4) For Commodities, returns of Thomson Reuters/CoreCommodity CRY Commodity Index (in INR
terms) are considered. Correlation has ben arrived based on 1-yr rolling return for last 10 yrs (July, 2010 – June, 2020) rolled on a daily basis.
Source: Bloomberg, MFI Explorer.

Model Portfolio vs Individual Asset Class Returns - PTP Returns

Model Por�olio vs Individual Asset Class Movement Calendar Year Returns for last 10 yrs (2010-2019)
300.0 Average Standard
Asset Class
Return (%) Deviation (%)
250.0 Model Portfolio 11.6 11.0
Equity 11.6 18.5
200.0 Debt 8.1 1.8
Gold 9.7 14.1
150.0
PTP Returns as on 30th June, 2020

100.0 Asset Class 1-Yr 3-Yr 5-Yr 10-Yr

Model Portfolio 1.2% 6.4% 7.8% 10.5%
50.0 Equity -12.1% 3.1% 5.4% 8.3%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YTD* Debt 11.5% 8.4% 8.6% 8.5%
Por�olio Gold Debt Equity
Gold 44.9% 19.7% 13.2% 10.2%
*June 2020
 Note: 1) Model Portfolio comprises of weighted allocation to S&P BSE 100 TRI (25%), S&P BSE Mid Cap TRI (25%), MSCI World Net Return Index (in INR terms)
(20%), Gold Futures prices from MCX (10%), Crude Oil prices (in INR terms) (5%) and CRISIL Short Term Bond Fund Index (15%); 2) For Equity, S&P BSE 100 TRI
returns are considered; For Debt, CRISIL Short Term Bond Fund Index returns are considered; 3) Average Returns & Standard Deviation are calculated based on
calendar year returns for last 10 years.
Source: Bloomberg, MFI Explorer.

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Model
Portfolio is for illustrative purpose only just to explain the concept of asset allocation and should not be construed as an investment advice or direct or indirect
solicitation for the scheme or the performance.

Model Portfolio vs Individual Asset Class - Rolling Returns

3-yr Rolling Returns for last 10 yrs (July 2010-June 2020)

Portfolio Gold Debt Equity
Average 12.1% 4.3% 8.5% 12.0%
Minimum -1.8% -8.3% 6.9% -6.4%
Maximum 19.5% 21.9% 10.2% 24.7%
Standard Deviation 3.3% 6.4% 0.8% 5.6%
Negative Instances (%) 0.2% 27.3% 0.0% 3.8%
Returns above 8% 92% 25% 63% 83%
Returns above 10% 79% 21% 1% 72%
Returns above 12% 49% 16% 0% 52%

Note: 1) Model Portfolio comprises of weighted allocation to S&P BSE 100 TRI (25%), S&P BSE Mid Cap TRI (25%), MSCI World Net Return Index (in INR terms)
(20%), Gold Futures prices from MCX (10%), Crude Oil prices (in INR terms) (5%) and CRISIL Short Term Bond Fund Index (15%); 2) For Equity, S&P BSE 100 TRI
returns are considered; For Debt, CRISIL Short Term Bond Fund Index returns are considered; 3) Returns & Standard Deviation are calculated based on 3-year
rolling returns rolled on a daily basis for the period between July 2010 to June 2020. Total No. of Instances: 1652
^
The scheme will invest in Gold ETF/ETCD/Sovereign Gold Bonds. Investors are requested to note that investment into physical Gold is neither envisaged nor is
part of the core investment strategy in the scheme.
Source: Bloomberg, MFI Explorer.

Disclaimer: 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 Nippon Life India Asset Management Limited (NAM India) (formerly known as
Reliance Nippon Life Asset Management Limited) 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 NAM India
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 NAM Indian’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.