“A Perspective on Gold”

Gold - A Distinct & Unique Asset Class

1
Upside Potential owing to Safe Haven during Economic
inherent demand Distress

Hedge against Inflation & Benefits from Rupee

Store of
3
Value Depreciation

Offers 4Portfolio Low/Negative Correlation

Diversification with other Asset classes

5 that adding between 6% and 17% in gold to a hypothetical Indian pension fund average
“Our analysis illustrates
portfolio over the past decade would have resulted in higher risk-adjusted returns1“
- Source: World Gold Council Report “The relevance of gold as a strategic asset Indian edition
 Historical Performance of Gold vs Debt & Equity
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
Gold has
2016
Gold Debt Equity outperformed other
10.1 9.8 5.0 asset classes in 5
Debt Equity Gold out of 10 calendar
2015 years highlighting
8.7 -2.0 -6.6
the importance of
Equity Debt Gold
2014
34.2 10.5 -6.0
having Gold as part
of one’s portfolio.
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

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
 Gold price tend to rise during & post Economic crisis

Gold vs Nifty during 2008 GFC

18000
1 5000

16000
4000

14000 2
3000
12000

10000 3 2000
13-Oct-08

27-Oct-08

05-Jan-09

19-Jan-09

02-Mar-09

16-Mar-09

30-Mar-09
15-Sep-08
01-Sep-08

29-Sep-08

10-Nov-08

24-Nov-08

08-Dec-08

22-Dec-08

02-Feb-09

16-Feb-09
Period Nifty Gold
Sep-08 to Mar-09 -33% 32%
Sep-08 to Dec-11 10% 154%
Gold (Rs/10 gm) (LHS) Nifty (RHS)
4
While Equities witnessed sharp correction during the 2008 Global Financial Crisis, Gold witnessed a
significant upsurge during the period owing to heightened Risk off sentiment highlighting the
importance of Gold as a safe haven asset.
5
Note: Gold(INR) price is arrived based on London AM Fix (Price In $) and RBI INR/USD reference rate
Source: LBMA, FBIL
 Offers Portfolio Diversification
Weak Correlation with Equity & Debt

Correlation Matrix Equity Debt

Gold -0.30 -0.29

Adding gold over the past decade would have increased risk-adjusted returns of a hypothetical Indian
average pension fund portfolio.

Note: Based on performance between 31 December 2009 and 31 December 2019. The hypothetical Indian average pension fund portfolio is based on the allocation to
various assets as per SBI Pension Fund for Central Government Scheme as of December 2019. Allocation is based on the investment guidelines of the Pension Fund
Regulatory and Development Authority (PFRDA). It includes 11% allocation to stocks (BSE Sensex), 49% allocation to India Government Bond (S&P BSE India
Government Bond Index), 37% allocation to corporate bond (CRISIL Corporate Bond Index) and 3% to cash (Bloomberg Barclays 1-3 year Indian Treasury Unhedged
Index). The allocation to gold comes from proportionally reducing all assets. Risk-adjusted returns are calculated as the annualised return/annualised volatility.

Correlation has been arrived based on 1-yr rolling return for last 10 yrs (2009-2019) rolled on a daily basis. 1) For Equity, Nifty returns are considered; 2) For Debt,
CRISIL Short Term Bond Fund Index returns are considered; 3) Gold(INR) price is arrived based on London AM Fix (Price In $) and RBI INR/USD reference rate.
Source: LBMA, FBIL, MFI Explorer, Bloomberg, CRISIL, World Gold Council Report “The relevance of gold as a strategic asset Indian edition
 Rupee Depreciation & Inflation - Favorable for Gold Prices

Rupee has depreciated against USD over long term Gold acts as a Hedge against Inflation
USD/INR Movement 600

500

400

300

200

100
Inflation Gold Rebased Values
0

Dec-09

May-19
Oct-10

Apr-12

Oct-17
Jan-06

Jun-15
Nov-06
Aug-07
Jun-08
Mar-09

Nov-13

Mar-16
Jan-17
Jul-11

Feb-13

Sep-14

Jul-18

Feb-20
Note: 1) Gold(INR) price is arrived based on London AM Fix (Price In $) and RBI INR/USD reference rate 2) For Inflation, India Consumer Price Index for Industrial
Workers with Base Year 2001 has been taken.
Source: LBMA, FBIL , Bloomberg, http://labourbureau.gov.in, MFI Explorer.
 Gold prices depicting a trend similar to 2008 GFC

Gold vs Nifty
44000
1
13000
42000

40000 11000
2
38000
9000
36000

34000
3 7000
16-Mar-20

23-Mar-20

30-Mar-20

13-Apr-20

20-Apr-20

27-Apr-20
3-Feb-20

2-Mar-20

9-Mar-20

6-Apr-20
10-Feb-20

17-Feb-20

24-Feb-20

Period Nifty Gold

Feb-20 to Apr-20 -21% 16%
Feb-20 to Apr-23 ? ?

4 Gold (Rs/10 gm) (LHS) Nifty (RHS)

Gold prices rebounded sharply after witnessing a short correction during mid of March. Whereas Equity
market witnessed sharp correction since February when Covid-19 concerns began in India.

5
Note: Gold(INR) price is arrived based on London AM Fix (Price In $) and RBI INR/USD reference rate
Source: LBMA, FBIL
Key Triggers for Gold

Rupee Depreciation

Store of Value

Lower Bond Yields

Key Drivers
for Gold
Investor Demand (ETF, Central
Banks, etc.) Prices
Central Banks’ B/S Expansion
(QE/Money Printing)

Global Uncertainties
COVID-19: Its Impact & Measures taken so far
• Covid-19 driven contraction in economic activity will lead to sharp recession
1 As per IMF, the global recession is likely to be at least as bad
across the World.
as 2008 GFC.

• 1HCY19 is expected
2 to witness double digit decline in economic growth in
many parts of the World.

3
• To mitigate the impact of Corona Virus, global policymakers are responding
with unprecedented level of monetary easing (money printing).

4
• Also Governments of various countries have announced unprecedented level
of fiscal stimulus to address the likely economic slowdown.

5
Gold poised for a multi year uptrend
• Gold is considered a safe haven during heightened risk-off sentiment & flight to safety.
Gold prices are reflecting
1 similar trend as during 2008 GFC.

• Governments of most countries are resorting to unprecedented fiscal measures which

can lead to fiscal slippages & higher debt to GDP ratio eventually leading to confidence
crisis or even possible sovereign rating downgrade.
2
• Record low/negative interest rates across the globe favorable for Gold as an asset class.

• As Central Banks3 embark on unprecedented level of monetary easing, their allocation to

Gold is expected to rise over the long term.

• Inflation is expected to rise owing to fiscal & monetary measures taken by governments
& central banks 4of most countries.

• Potential Rupee depreciation will also benefit domestic Gold prices.

• Risk Factor – Gold

5 is a volatile asset class & is subject to volatility over the short to
medium term.
Performance of Nippon India Gold Savings Fund
Nippon India Gold Savings Fund
NAV as on Apr 1
30, 2020: Rs 20.0306
CAGR %
Particulars
1 Year 3 Years 5 Years Since Inception
Nippon India Gold Savings Fund 50.62 16.61 10.57 7.88
B:Domestic Prices of Gold 47.09 16.95 11.28 8.95
AB:NA 2 N.A. N.A. N.A. N.A.
Value of Rs. 10,000 Invested
Nippon India Gold Savings Fund 15,079 15,876 16,537 20,031
B:Domestic Prices of Gold 14,725 16,016 17,076 21,924
AB:NA N.A. N.A. N.A. N.A.
3
Inception Date : Mar 7, 2011
Fund Manager : Mehul Dama (Since Nov 2018)

Different plans shall have a different expense structure. The performance details provided herein are of Growth Plan (Regular Plan).

4
B: Benchmark, AB: Additional Benchmark

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Performance
of the schemes (wherever provided) are calculated basis CAGR for the past 1 year, 3 years, 5 years and since inception. In case, the start/end date of the concerned
period is non-business day (NBD), the NAV of the previous date is considered for computation of returns.
For performance of other funds managed by the Fund Manager, please refer slide 13

5
Source : MFI Explorer, As on April 30, 2020
Product Label
(Nippon India Gold Savings Fund - An open ended Fund of Fund Scheme)

PRODUCT LABEL
Nippon India Gold Savings Fund is suitable for investors who are
seeking*:

• Long term capital growth

• Returns that are commensurate with the performance of
Nippon India ETF Gold BeES through investment in securities
of Nippon India ETF Gold BeES

*Investors should consult their financial advisors if in doubt about

whether the product is suitable for them.
Performance of other funds managed by the same Fund Manager
CAGR %
Scheme Name 1 Year Return 3 Years Return 5 Years Return
Scheme Benchmark Scheme Benchmark Scheme Benchmark
Top 3
Nippon India ETF Gold BeES* 45.69 47.09 15.74 16.95 10.27 11.28
Nippon India ETF Consumption* -5.08 -4.97 4.30 4.44 7.74 7.77
Nippon India ETF Shariah BeES* -6.70 -5.81 3.80 5.03 6.35 7.54
Bottom 3
Nippon India ETF Nifty Midcap 150 -17.57 -17.16 N.A. N.A. N.A. N.A.
Nippon India ETF Dividend Opportunities* -17.87 -18.27 -0.05 -0.07 4.63 4.57
Nippon India ETF PSU Bank BeES* -56.70 -56.51 -28.85 -28.48 -17.45 -17.07
Mr. Mehul Dama has been managing Nippon India ETF Shariah BeES since Nov 2018
Mr. Mehul Dama has been managing Nippon India ETF Consumption since Nov 2018
Mr. Mehul Dama has been managing Nippon India ETF Dividend Opportunities since Nov 2018
Mr. Mehul Dama has been managing Nippon India ETF Gold BeES since Nov 2018
Mr. Mehul Dama has been managing Nippon India ETF PSU Bank BeES since Nov 2018
Mr. Mehul Dama has been managing Nippon India ETF Nifty Midcap 150 since Jan 2019
Note:
a. Mr. Mehul Dama manages 15 open-ended schemes of Nippon India Mutual Fund .
b. In case the number of schemes managed by a fund manager is more than six, in the performance data of other schemes, the top 3 and bottom 3
schemes managed by fund manager has been provided herein are on the basis of 1 Year CAGR returns
c. Period for which scheme’s performance has been provided is computed basis last day of the month-end preceding the date of advertisement
d. Different schemes shall have a different expense structure.
*The Scheme does not offer any Plans/Options. The performance details are provided at Scheme level using Dividend Reinvestment NAV’s.
Since Nippon India ETF Nifty Midcap 150 has not completed 3 years, returns are provided only for 1 year
Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other Investment.
Dividends (if any) are assumed to be reinvested at the prevailing NAV. Performance of the scheme would be Net of Dividend distribution tax, if any. Face
Value of Nippon India ETF Gold BeES and Nippon India ETF PSU Bank BeES is Re.1/- per unit. Face Value of other schemes is Rs.10/- per unit. In case, the
start/end date of the concerned period is non-business day (NBD), the NAV of the previous date is considered for computation of returns.

Source : MFI Explorer, As on April 30, 2020

Product Labels
Name of Scheme
Nippon India ETF Dividend
Opportunities
(An Open Ended Index Exchange
Traded Fund)
Nippon India ETF PSU Bank BeES
(An Open Ended Index Exchange
Traded Fund)
Nippon India ETF Consumption
(An Open Ended Index Exchange
Traded Fund)
Nippon India ETF Shariah BeES
(An Open Ended Index Exchange
Traded Fund)
Nippon India ETF Gold BeES (An
Open Ended Gold Exchange
Traded Scheme)
Nippon India ETF Nifty Midcap
150 (An Open Ended Index
Exchange Traded Fund)
This product is suitable for investors who are seeking*:
• Long term capital growth
• Investment in equity and equity related securities and
portfolios replicating the
composition of Nifty Dividend Opportunities 50 Index,
subject to tracking errors.
• Long term capital appreciation
• Investment in Securities covered by Nifty Infrastructure
Index
• Long term capital growth
• Investment in equity and equity related securities and
portfolios replicating the composition of Nifty India
Consumption Index, subject to tracking errors
• Long term capital appreciation
• Investment in Securities covered by Nifty50 Shariah
Index
• Portfolio diversification through asset allocation
• Investment in physical gold
• Long term capital growth
• Investment in equity and equity related securities and
portfolios replicating the composition of Nifty Midcap
150 Index, subject to tracking errors
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 India’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.
Thank you for your time!