MY GOLD PLAN Product Presentation
Gold Consumption Drivers in India • Considered a symbol of security and sign of prosperity • Gold is ancestral and passed down from generation to generation • Most of the Gold collection generally begins in an Indian family from the "Godbharai” ceremony, to getting bracelet & anklet of black & white colored beads to protect the child against the evil eyes • It is common for parents of a child to start collecting gold in jewellery for the child’s security, exigency, marriage, etc
Wedding ceremony confidential
"Godbharai” ceremony
Festivals
Offerings to Gods
Significance of Gold in Indian Household
20,000 tonnes Gold held by Indian Households
Gold is a culturally embedded asset class
Source: Handbook of statistics on Indian economy, published by RBI, 2009-10 World Gold Council
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Challenges in the Indian Physical Gold market
UNORGANIZED MARKET
ORGANIZED MARKET
Lack of Transparency and concerns on purity of the gold sold
No plan which allows systematic accumulation of physical gold
Concerns around credit worthiness of the unorganized market participant
Banks offering Gold Coins have a differential pricing
No Standard market pricing for Gold offered in the Unorganized market
Issues of accessibility
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Presenting My Gold Plan
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How My Gold Plan works?
Option to Renew
Admin Charge
15 year
1.5%
3 year 2 year
Lock-in Period 6 months
1 year
Pre-Termination Fee
Partial Fulfillment
2.5% (only upto 1 year)
Top-up anytime
Subscribe Rs. 1000 and multiples of Rs. 100
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No Monthly Commitment If minimum 12000 subscribed.
Choose Daily Averaging or One Time Allotment
Benefit of Daily Averaging
Average Price
Initial Payment
Monthly Payment
Rs. 1000
Rs. 50
Rs. 50
Rs. 50
………………………………
Daily Price Averaging confidential
Rs. 50
WGC & My Gold Plan
WGC runs such program with various partners across the globe These partners are generally the financial front runners of the country To name a few:
China
WGC has signed up with Industrial and Commercial Bank of China (ICBC) ICBC is the largest and most profitable commercial bank in the world It serves over 215 million individual and corporate clients globally Since the programs inception in March 2010, over one million accounts have already been opened
Japan WGC has signed up with 2 of the biggest Japanese financial entities
Mitsubishi Corporation & Mitsubishi UFJ Trust and Banking Corporation Mitsubishi Corporation is the largest general trading house in Japan It runs the largest gold trading team in Japan
Tanaka Kikinzoku Kogyo K.K. Group (TKK)
Tanaka is the largest bullion house in Japan WGC has been running GAPs with the TKK group since 30 years
In India WGC has an exclusive tie up with Reliance Money
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Structure of RMGP Trustee RMPM
Investor
Distributor
Reputed Back Office Provider
Specialized Safe Keeper Fulfilment Partner
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Structure of RMGP Trustee
Safe Keeper
Product Manager
IDBI Trusteeship Services Ltd. Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001 Maharashtra Tel. No. - +91 22 40807000, Fax No. - +91 22 66311776 Website: http://www.idbitrustee.co.in
Lemuir Secure Logistics Pvt. Ltd. Oricon House, 12, K. Dubash Marg, Mumbai – 400 023 Maharashtra Website: http://www.lemuirexpress.com
Reliance Money Precious Metals 11h Floor, R-Tech Park, Nirlon Compound, Western Express Highway, Mumbai – 400063. Maharashtra. Landmark – Near Hub, Behind Oracle Building Goregaon (East), Website: www.mygoldplan.co.in
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Benefits of RMGP SYSTEMATIC GOLD ACCUMULATION ACCESSIBILITY
• A disciplined accumulation methodology under which you accumulate gold grams by making small but regular subscriptions • Low entry level with a minimum payment of Rs. 1000/- and in multiples of Rs. 100/- thereafter
PLANNING FOR SPECIAL EVENTS
• Plan for a large Gold purchase in the future for special events like daughter’s wedding, your wedding anniversary, etc
DAILY COST AVERAGING
• All subscriptions made will be split into 20 daily purchases thus reducing the risk of timing the markets
ZERO DEFAULT RISK
• An Independent trustee manages the bank accounts, ensures safekeeping of Gold and delivery of Gold to the end customers
ASSURED PURITY ASSOCIATION confidential
• 24 Karat Gold of 995 fineness or more credited to the customer’s account up to 4 decimals • Partnered with World Gold Council, globally recognised organisation of the gold industry, including global mining companies
R-MGP verses other prevailing products Reliance My Gold Plan
Gold ETF
Gold Savings Fund
Jeweller
Yes
Yes
No
No
Gold Coins/Jewellery*
Cash
Cash
Own Jewellery only
Allotment
Price of Gold at each Subscription
Net Asset Value
Net Asset Value
Price of Gold at the end of the tenure
Mode of Subscription
Cheque / DD / ECS / Cash/Direct Debit
Stock Exchanges
ECS / Cheque / DD
Cash
Average Pricing Methodology
Yes
No
No
No
Impurity Risk
No
Not Applicable
Not Applicable
Yes
Default Risk
No
No
No
Yes
Flexibility to buy gold from other Jewellers
Yes
Not Applicable
Not Applicable
No
Across India
Not Applicable
Not Applicable
At his outlet
Features Backed by Physical Gold Fulfilment Mode
Fulfilment Centres
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3 Simple Steps – Subscribe, Pay and Fulfill 1
2
SUBSCRIBE
Online Application
3
PAY
FULFILL
Cheque/DD/ PDC ECS/ Direct Debit/Net Banking
Physical Application Form
Credit/Debit/ Prepaid Card
Branches Distributors Call Centre
Walk-in to Outlet
Cash
Fulfillment in Jewellery
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Fulfilment partner
Bullion Trader & Custodian
Back Office Provider
Customer / Distributor/ POS
Process Flow
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•A/C Opening Form •KYC Documents •Initial Subscription •Subsequent Subscription
•Monthly Statement t of Holding on a monthly basis to Customer •Other Communication
RMPM book gold gram with Bullion trader
Verifies information and enters in Online Portal and banking of Instrument
Allocate Subscription into 20 equal parts and inform RMPM 1/20th part daily for purchase of Gold
Scan and submit relevant document to Back office Service Provider
Fund Credit Identification and reconciliation
Store Gold with Safe Keeper
•Customer Adoption •Creation of Customer ID •Dispatch of Welcome Kit
On Redemption instructions of RMPM gold grams to be released
Gold Coin
Jewellery
Sample Statement of Holding
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Sample Statement of Holding
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Disclaimer R-MGP is neither a financial product nor a deposit but a method of purchasing gold through periodic accumulations for the personal needs of the customer. Neither RMPM nor World Gold Council (WGC), or any of their associates, offers any investment advice or promises /forecasts any assured return through R-MGP while promoting the product.
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Reliance Money – Whenever it’s a question of your money