“The desire for gold is the most universal and deeply rooted commercial instinct of

the human race” - Gerald M. Loeb

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Gerald Loeb (1899 - April 13, 1974) was a founding partner of E.F. Hutton & Co., a renowned Wall Street trader, and the author of the books The Battle For Investment Survival and The Battle For Stock Market Profits. Loeb promoted a view of the market as too risky to

hold stocks for the long term in contrast to well known value investors. He also created the Gerald Loeb Award, given annually for excellence in various categories of financial journalism.

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Case for Gold Investment

The Value of Gold

• Gold: A perceived safe haven asset• Low correlations

• Store of value: Hedge against inflation

• Currency: Medium of exchange • Evolved in the marketplace

over the last 5,000 years.• Unique Demand: • Consumption

product, especially in markets like India and China

• Demand for weddings and religious occasions

Some Current Trends

• Quantitative Easing leading to increase in the price of Gold

• Gold’s Investment demand on the rise• Globally hedge funds, ETFs

and mutual funds are driving up investment demand for Gold

• Central Banks increasing Gold reserves aggressively

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Low Correlations with other Asset Classes

Asset Class Gold SENSEXCNX

MIDCAP INDEX

CRISIL COMPOSITE

BONDNIFTY

Gold 1.00SENSEX 0.16 1.00

CNX MIDCAP INDEX 0.12 0.85 1.00CRISIL COMPOSITE

BOND -0.03 0.15 0.21 1.00

NIFTY 0.18 0.99 0.86 0.16 1.00

Gold is an Effective Diversifier - Helps to contain Portfolio Risk. Low correlation with major asset classesPast Correlations may or may not be observed in future.Source: Bloomberg as on 15th Feb 2012. All figures in local currency

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Unique Dual Demand Dynamics

The desire of gold jewellery adds an interesting “consumption” paradigm to this asset class, especially in markets like India

(& China)

Gold investing therefore has a dual dynamic – Investment and Consumption

Significant physical demand: Gold Demand for Jewellery is almost twice that of

investment demand

Source: GFMS,World Gold Council . * Includes Identifiable and non-identifiable investment

Investment 31%

Industrial12%

Jewellery57%

World Gold Demand flows 5yr Avg (Q4 '05 to Q3 '10)

Investment Industrial Jewellery

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Gold in India

18000 tonnes worth just under USD 1 trillion or 11% of global stock Represents approx. 15 gms gold per capita holding ETF Holdings currently just at USD 2.7 bn or approx 0.27% of

national gold holdings Almost all gold is held as bullion or jewelry Significant demand for investment gold destined for consumption

Source: GFMS, World Gold Council and internal analysis . Data as on 17th May, 2011

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on external current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Please refer to the Scheme Information Document for further information.

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MOSt GOLD SHARES - Do we need one more?

Make the MOSt of your GOLD! Get gold at a lower price!

Motilal Oswal MOSt Shares Gold ETF• For the 1st time ever, directly buy from AMC in 10 gram lots

OR • Buy Gold ETFs from stock exchange terminal (1 gm i.e. 1 unit or

higher)• For the 1st time ever, redeem ETF Units for physical Gold bars as low

as 10gms • Get pure imported gold- fineness or purity of 99.5% or higher• At a price lower than other options in the market• Delivery centers across 22 cities in India• Pass through price benefit to consumers!!!

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MOSt GOLD SHARES – Get gold at a lower price

• Get gold at a lower price:– MOSt Gold Shares opens up

the Spot Gold price to retail investors for the 1st time

• Cost effective:– Investors buy & accumulate

ETF units– True gold accumulation

– Redeem for cash, physical gold bars at better rates than any other Banks/ Jeweller

• Best of both worlds:– MOSt Gold Shares marries the

investment benefits of Gold with its Consumption –seamlessly

Other avenues in the market

Premium over spot prices

Banks 6% - 17%

Jewellers 6% - 7%

The above premium over spot prices may differ from bank to bank and jeweller to jeweller

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MOSt GOLD SHARES – Guaranteed Purity

India’s first GOLD ETF to…• Break down from 1 Kg to 10 Gms creation unit lots• Designated delivery locations across India

Pure Imported Gold …• Certified by one of five 'Approved Good Delivery Referees' of the London

Bullion Market Association (LBMA), • Responsible for the testing of samples, the provision of reference

samples, and other functions in support of the 'Good Delivery' system.

The 10 gm bar…• Individually registered and sealed in protective Certicard packaging• Official Assay Certificate that guarantees fine gold content and weight

*Guaranteed Purity - Imported gold of finesse 995 or higher

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MOSt GOLD SHARES Gold collection centers across 22 locations

For details of gold collection, please refer out websites & Scheme Information Document (SID) of MOSt Gold Shares

*Ahmedabad*BangaloreBhubaneswarChennai*HyderabadJaipurKolkataDelhiCoimbatoreKochiKanpur

LucknowMadurai*MumbaiSuratVisakhapatnamVijayawadaThrissurSalemIndoreTrichyTrivandrum

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Buying Physical GoldParameter MOSt Gold Shares Other GOLD ETF’s Jeweller Bank

Physical Lots 10 gms or multiples 1 Kg. or multiples N.A. N.A.

Gold Collection Centres

22 Locations across India

Only Mumbai N.A. N.A.

Mode of Holding

Demat Demat Physical (Bars / Coins) Physical (Bars / Coins)

Pricing Spot Gold prices Spot Gold prices Differs from one to another. Neither

transparent nor standard.

Differs from bank to bank. Not Standard.

Purity 99.5% or higher 99.5% or higher Can’t Say High

Risk of Theft No, Secured Vaults No, Secured Vaults Yes Yes

Wealth Tax No No Yes Yes

Long Term Capital Gains

Tax

Indexation benefit after one year

Indexation benefit after one year

Only after 3 years Only after 3 years

Liquidity High High Relatively at High Cost Low on Liquidity

For further details, please refer Scheme Information Document (SID) of MOSt Gold Shares

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MOSt GOLD SHARES – Key Features

For further details and delivery charges, please refer to the Scheme Information Document (SID)

• Investment objective: To provide return by

investing in Gold Bullion.

• Performance: Benchmarked to the Spot Gold

Price.

• The units of the Scheme bought or sold

– On Stock Exchanges (BSE/NSE) minimum

trading lots of one units (1gm)

– Directly with the Mutual Fund in creation

unit lot of 10 units and multiples

• Invests only in physical gold of 99.5 purity or

higher

• No Entry or Exit Load

• Minimum Investment during NFO: Rs. 10,000/-

and multiples of Re. 1/-

• Fund Manager: Mr. Rajnish Rastogi

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Cash Creation process

The above process flow is only for understanding purpose and may vary from case to case. For further details, please refer Scheme Information Document (SID) of MOSt Gold Shares

T•Creation request receivedbefore the cut-off time(3pm).

T•Cash credited into MF BankA/C•Amount of cash determinedfrom the CU file uploadeddaily on the AMC website

T•Receipt of Cash by Fund.•Fund purchases Gold frommarket on behalf of investor

T•AMC sends the Txn Slip toR&T agent

T+2•R&T to allot units on receiptof custodian confirmation ofreceipt of physical gold bythe Fund.

T+2•R&T agent credits the ETFunits into the investor`s DPA/C.

T+3•Units trade on exchange

13The above process flow is only for understanding purpose and may vary from case to case. For further details, please refer Scheme Information Document (SID) of MOSt Gold Shares

T•Request for redemption received by AMC from the investor by 3 pm •PAN Card and self attested copy of specified identity proofs received by AMC

T•Request time stamped at AMC •DP Instruction Copy•Acknowledgement delivered to investor along with copy of terms and conditions

T•Units confirmed received at AMC DP•Investor Transfers cash due if any to MF bank account

Physical Redemption process

T+5•Gold released for delivery after person/document verification at gold collection centre• Gold Delivered and Acknowledgement Accepted •R&T agent cancels the ETF units•AMC deposits the cash component if any into the bank

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Disclaimer: The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions and features of the Scheme. The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and data included in this document are as on date and are subject to change without notice. While utmost care has been exercised while preparing this document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this document. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the Motilal Oswal Mutual Fund/Motilal Oswal Asset Management Company Limited. Readers should before investing in the Scheme make their own investigation and seek appropriate professional advice.Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd. Scheme Name & Classification: Motilal Oswal MOSt Shares Gold ETF (MOSt Gold Shares), an open ended Exchange Traded Fund. Investment Objective: The investment objective of the Scheme is to provide return by investing in Gold Bullion. The performance of the fund will be benchmarked to the Spot Gold Price. However, the performance of scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme would be achieved. Asset Allocation: Gold Bullion: 95%-100%; Government Securities, Money Market Instruments and cash at call: 0-5%. Load: Entry Load: Nil Exit Load: Nil Terms of Issue: Minimum Application Amount: During NFO, Rs. 10,000/- and in multiples of Re. 1/- each. Ongoing Basis, On the Exchange: The units of the Scheme are proposed to be listed on the Capital Market Segment of National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE). On the Exchange, the units of the Scheme can be purchased/sold in minimum lot of 1 unit and in multiples thereafter. Directly with the Fund: Investors can buy/sell units of the Scheme in creation unit size of 10 units (10 gms) and multiples of 10 units (10 gms) thereof. The scheme offers only redemption in kind (physical delivery of gold) directly with the fund. Face Value & Issue Price: The units being offered will have a face value of Rs. 10/- each. Units will be issued at a premium equivalent to difference between allotment price and the face value of Rs. 10/-. Investor Benefits and General Services: During continuous offer, sale and redemption of units of the Scheme would be at NAV based prices on all business days. NAVs to be declared on all business days. Risk Factors: (1) All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme’s objectives will be achieved (2) As the price/value/interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of the Scheme may go up or down depending upon the factors and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provide a basis of comparison with other investments (4) Motilal Oswal MOSt Shares Gold ETF (MOSt Gold Shares ) is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) The present Scheme is not a guaranteed or assured return Scheme. (7) Investment in the scheme shall be subject to various other risk factors including but not limited to risk associated with investment in Gold, currency risk, exchange rate risk, tracking error risk, etc. Disclaimer of NSE: 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 Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. Disclaimer of BSE: It is to be distinctly understood that the permission given by Bombay Stock Exchange Ltd. should not in any way be deemed or construed that the SID has been cleared or approved by Bombay Stock Exchange Ltd. nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer Clause of the Bombay Stock Exchange Ltd. For further Scheme Specific Risk Factors & other details, Please read the Scheme Information Document (SID) & Statement of Additional Information (SAI) carefully before investing. A copy of SID, SAI and KIM alongwith the application form are available at the office of the AMC, R&T, Distributors, or can be downloaded from www.motilaloswal.com/assetmanagement and www.mostshares.com.