MY GOLD PLAN. Product Presentation

MY GOLD PLAN Product Presentation Gold Consumption Drivers in India • Considered a symbol of security and sign of prosperity • Gold is ancestral and...
Author: Vincent Kelley
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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    

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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   

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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