Nippon India Multi Asset Fund (An open ended scheme investing in - PowerPoint PPT Presentation

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

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 Gold Debt Equity 2016 10.1 9.8 5.0 Top Performers: Different Asset Debt Equity Gold 2015 Classes 8.7 -2.0 -6.6 • Gold* - 5 years outperform in Equity Debt Gold • Equity – 3 years 2014 34.2 10.5 -6.0 different years. • Debt – 2 years 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. The above data is for last 10 years. 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 of the Scheme. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.

And even within asset classes 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Large Cap Large Cap Small Cap Mid Cap Mid Cap Small Cap Large Cap Mid Cap Large Cap Mid Cap 10.9 2.6 61.0 9.3 8.7 71.1 7.6 40.4 -24.8 17.7 Equity Mid Cap Mid Cap Mid Cap Large Cap Small Cap Mid Cap Mid Cap Small Cap Midcap Small Cap -2.1 -12.5 50.0 5.0 7.7 56.9 -4.0 34.8 -33.3 17.3 Even within Small Cap Small Cap Large Cap Small Cap Large Cap Large Cap Small Cap Large Cap Small Cap Large Cap -5.9 -22.8 33.4 2.7 -2.0 34.2 -9.7 32.0 -41.7 17.2 asset classes there is 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 significant Long Term Short Term Short Term Long Term Short Term Long Term Short Term Long Term Short Term Short Term variation in Debt Debt Debt Debt Debt Debt Debt Debt Debt Debt returns. 10.5 6.7 6.0 14.9 8.7 14.1 8.3 10.6 7.9 4.7 Debt Short Term Long Term Long Term Short Term Long Term Short Term Long Term Short Term Long Term Long 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 Equities : 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.

Asset Class Returns can be diverse Asset Class Returns in 2011 Asset Class Returns in 2013 8.3 32.5 7.6 7.9 Hence, staying -7.9 -24.8 Gold Equity Debt Gold Equity Debt invested across Asset classes is Asset Class Returns in 2014 Asset Class Returns in 2017 quintessential. 34.2 33.4 10.5 6.3 6.0 -6.0 Gold Equity Debt Gold Equity Debt 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 of the Scheme. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.

Asset Allocation is considered to be the Key to Long term wealth creation It is the asset allocation that makes the difference in the long-term Stock Selection & Others 10% Asset Allocation 90% More than 90% of the portfolio returns are based on asset allocation decisions.* *Source: “Does Asset Allocation Policy Explain 40%, 90% or 100% of Performance? “ According to a Study in 2001

Benefits of Asset Allocation Asset classes follow different cycles over different 1 time periods It is difficult to predict which Asset class will 2 outperform Asset allocation is the key driver of portfolio 3 returns Helps in Portfolio Diversification 4 5 Leads to Optimal Returns

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 Market Commodities* securities (including Instruments overseas securities) *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 mark to market movement.

Investment Strategy & Probable Allocation - Bottom up stock selection approach across market caps and sectors. - Blended investment approach Equity (50%) - Focus on the scalability of the business model - Equity investments across geographies. Overseas Equities - MSCI World Index will be the investment universe. It tracks performance of (20%) stocks/sectors across 23 developed markets. - Flexibility to invest in various Commodities @ to provide diversification even within commodities. Commodities (15%) - Investment in ETCDs of Metals, Energy and Indices as permitted by SEBI from time to time. Debt & Money - Will primarily focus at the short-term accrual space with allocation to high grade instruments. Market Instruments (15%) @ as permitted by SEBI from time to time The above exposure is subject to change within the limits of SID depending on fund managers views and the market conditions.

Model Portfolio vs Individual Asset Class - PTP Returns Calendar Year Returns for last 10 yrs (2010-2019) Model Portfolio vs Individual Asset Class Movement Average Standard 400.0 Asset Class Return (%) Deviation (%) Model Portfolio 11.6 11.0 350.0 Domestic Equity 11.6 18.5 300.0 International Equity 14.9 13.1 Debt 8.1 1.8 250.0 Gold 9.7 14.1 200.0 PTP Returns as on 30th June 2020 150.0 Asset Class 1-Yr 3-Yr 5-Yr 10-Yr Model Portfolio 1.2% 6.4% 7.8% 10.5% 100.0 Domestic Equity -12.1% 3.1% 5.4% 8.3% 50.0 International Equity 12.0% 12.4% 10.6% 15.4% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD* Debt 11.5% 8.4% 8.6% 8.5% Portfolio Gold International Equity Debt Domestic 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 Domestic Equity, S&P BSE 100 TRI returns are considered; For International Equity, MSCI World Net Return Index returns (in INR terms) 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.