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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Nippon India Multi Asset Fund

NFO Open Date: 7th August 2020 | NFO Close Date: 21st August 2020

This product is suitable for investors who are seeking* Long term capital growth Investment in equity and equity related securities, debt & money market

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.

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

Contact your financial advisor I Visit www.nipponindiamf.com

International Equity Domestic EquityDebtGold*

Re

bas

ed

Val

ue

s (i

n R

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Gold Debt Domestic Equity International Equity

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

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.

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.*Gold Futures prices from MCX.

Aim to have a Portfolio Suited for all Market Conditions

Over the last decade we have seen divergent returns among Asset classes

Winners keep changing among Asset classes

Different Asset Classes outperform in different years.

Top Performers:

*Gold - 5 years | Equity – 3 years | Debt – 2 years

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.

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.

Even within asset classes there is significant variation in returns

Hence, staying invested across Asset classes is quintessential.

Top Performers in Equity:

Large Caps - 4 years

Mid Caps – 4 years

Small Caps – 2 years

Top Performers in Debt:

Short Term Debt - 6 years

Long Term Debt – 4 years

2019Gold

24.6%Equity 10.9%

Debt 9.5%

2018Gold 7.6%

Debt 6.7%

Equity 2.6%

2017Equity 33.4%

Gold 6.3%

Debt 6.0%

2016Gold

10.1%Debt 9.8%

Equity 5.0%

2015Debt8.7%

Equity -2.0%

Gold -6.6%

2014Equity 34.2%

Debt 10.5%

Gold -6.0%

2013Debt 8.3%

Equity 7.6%

Gold -7.9%

2012Equity 32.0%

Gold 12.4%

Debt 9.1%

2011Gold

32.5%Debt 7.9%

Equity -24.8%

2010Gold

24.2%Equity 17.2%

Debt 4.7%

Data for last 10 yrs

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Large Cap

10.9%

Large Cap

2.6%

Small Cap

61.0%

Mid Cap9.3%

Mid Cap

8.7%

Small Cap

71.1%

Large Cap

7.6%

MidCap

40.4%

Large Cap

-24.8%

MidCap

17.7%

Mid Cap

-2.1%

Mid Cap

-12.5%

Mid Cap

50.0%

Large Cap

5.0%

Small Cap

7.7%

Mid Cap

56.9%

Mid Cap

-4.0%

Small Cap

34.8%

Midcap

-33.3%

Small Cap

17.3%

Small Cap

-5.9%

Small Cap

-22.8%

Large Cap

33.4%

Small Cap

2.7%

Large Cap

-2.0%

Large Cap

34.2%

Small Cap

-9.7%

Large Cap

32.0%

Small Cap

-41.7%

Large Cap

17.2%

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Long Term Debt

10.5%

Short Term Debt6.7%

Short Term Debt6.0%

Long Term Debt

14.9%

Short Term Debt8.7%

Long Term Debt

14.1%

Short Term Debt8.3%

Long Term Debt

10.6%

Short Term Debt7.9%

Short Term Debt4.7%

Short Term Debt9.5%

Long Term Debt6.0%

Long Term Debt0.0%

Short Term Debt9.8%

Long Term Debt7.4%

Short Term Debt

10.5%

Long Term Debt-0.7%

Short Term Debt9.1%

Long Term Debt1.9%

Long Term Debt3.1%

Equity

Debt

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

Investment Objective & Asset Allocation

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

Allocation 90%

Stock Selection& Others 10%

#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

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

*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.

INDICATIVE ASSET ALLOCATION

50 – 80%

Equity & Equity related

securities (including Overseas

Securities/Overseas ETF)

10 – 20%

Debt & Money

Market Instruments

10 – 30%

Commodities*

1. Indian Equity Investment (50%)

Multi Cap investment

strategy

Bottom Up selection approach

Stock selection based on gap between fair

value and market price

No bias towards growth or value

stocks

Focus on the scalability of the business model

PortfolioConstruct

Large Caps: 50-70%; Rest predominantly in Mid Caps;

of Equity portfolio

Terminal Value &Business scalability

–key criteria

Alpha creation through stock

selection

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

Investment Strategy & Probable Allocation

2. Overseas Equity Investment (20%)

Investment across geographies based on prevailing view/tactical opportunity

MSCI World Index will be the investment universe. It tracks performance of stocks/sectors across 23 developed markets.

Overseas Equity investment could act as an effective diversification tool as well as benefit from any currency depreciation

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

Domestic Equity - Investment Framework

Overseas Equity - Investment Framework

Active Share <50 Deviation from Benchmark in the Top Sectors Banks & Financials – not more than 25% Energy, IT and FMCG – not more than 40%

*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.

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

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

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

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

Stock Concentration* Not more than 4% in any C rated stocks Cumulative exposure to C rated stocks: 35% (in line with index) Cumulative exposure to D rated stocks < 3%

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

Commodities – A Distinct & Unique Asset Class

Asset Allocation beyond Equity & Debt:Commodity an important tool for Diversification

Upside Potential owing to inherent demand

Offers Portfolio Diversification

Considered as Safe Haven during Economic Distress

Hedge against Curren-cy Depreciation

Diversification within commodities – Metals, Energy & Indices as

permitted by SEBI from time to time

Hedge against Inflation

1 2 3

Flexibility to invest in various Commodities@ to

provide diversification even within commodities

Investment in Exchange Traded Commodity

Derivatives (ETCDs) of Metals, Energy and

Indices as permitted by SEBI from time to time

Gold$ will be a key diversifier given low

correlation to Equity & Debt

Commodity Investment Framework

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.

Flexibility to invest in various Commodities to provide diversification

even within commodities

Investment will be predominantly into Gold

ETF/ETCD.

Gold$ will be a key diversifier given low

correlation to Equity & Debt

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

@as permitted by SEBI from time to time

$The scheme will invest in Gold ETF/ETCD/Sovereign Gold Bonds. Investors are requested to note that investment into physical Gold isneither envisaged nor is part of the core investment strategy in the scheme.

Investment Rationale

Fund seeks to provide

diversification across asset

classes with an aim to provide superior risk

adjusted returns

Fund also offers diversification

under respective asset classes

Benefit from Tax efficiency through

rebalancing within the Fund

A one stop solution which

may help to reap benefit of

Growth of Equity, Stability of Debt & Diversification

from Commodities

Correlation between Asset classes

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 (August 2010 - July 2020) rolled on a daily basis.Source: Bloomberg, MFI Explorer.

Weak or negative correlation between asset classes helps in Portfolio Diversification

Model Portfolio vs Individual Asset Class Returns - PTP Returns

*July 2020

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.

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.

Predominantly invest in Good credit quality assets Issuer: LT rating min 85% AAA, rest AA+ & AAInstrument: AAA/ A1+ >=85%, short term not below A1+

CorrelationDomestic

EquityOverseas

EquityDebt Commodity

Domestic Equity 1.00 0.19 0.10 -0.01

Overseas Equity 1.00 -0.06 0.46

Debt 1.00 -0.61

Commodities 1.00

Calendar Year Returns for last 10 yrs (2010-2019)

Asset ClassAverage

Return (%)Standard Deviation

(%)

Model Portfolio 11.6 11.0

Domestic Equity 11.6 18.5

Overseas Equity 14.9 13.1

Debt 8.1 1.8

Gold 9.7 14.1

PTP Returns as on 31st July 2020

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

Model Portfolio 11.1% 6.9% 8.8% 10.6%

Domestic Equity 2.0% 3.5% 6.6% 8.6%

Overseas Equity 17.4% 13.1% 11.0% 14.8%

Debt 11.1% 8.4% 8.6% 8.6%

Gold 54.2% 23.7% 16.7% 11.7%

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Model Portfolio vs Individual Asset Class Movement

Portfolio Gold International Equity Debt Domestic EquityYTD*

Model Portfolio vs Individual Asset Class - Rolling Returns

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.

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 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.

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 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) Returns & Standard Deviation are calculated based on 3-year rolling returns rolled on a daily basis for the period between August 2010 - July 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.

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

Portfolio Gold^ DebtDomestic

EquityOverseas

Equity

Average 12.0% 4.4% 8.5% 12.0% 14.8%

Minimum -1.8% -8.3% 6.9% -6.4% 2.4%

Maximum 19.5% 22.0% 10.2% 24.7% 29.4%

Standard Deviation 3.4% 6.6% 0.8% 5.6% 5.9%

Negative Instances (%) 0.2% 27.3% 0.0% 3.8% 0.0%

Above 8% 90% 25% 65% 83% 92%

Above 10% 79% 21% 1% 72% 76%

Above 12% 49% 16% 0% 52% 60%