Absolute Absolute

Freedom Portfolio Freedom Portfolio

Fact Sheet April 2011
Investment Strategy:
The investment strategy endeavours to create a diversified Key Highlights as on 31st March 2011 Investment Structure
portfolio spread across market capitalizations. The portfolio will Portfolio Nifty Minimum Investment : Rs. 50 Lacs
generally aim to hold around 25 stocks. This would ensure
meaningful positions in majority of the holdings. The top 10 Price / Earnings* 11.4 14.9 Suitable Investment Horizon : 3 years
holdings would generally comprise 50% of the portfolio value. The Earnings Growth^ 17.2% 16% Mode of Inflow:
intent is to identify, businesses having sustainable competitive
Risk Adjusted Returns@ 4.1% 3.3%  Domestic Investors: Cheque should be drawn in clients name only. Investors will also have the option to transfer their
advantage, scalability, ability to generate cash, high operating
margins, good return ratios, quality management, low debt to Debt / Equity~ 0.6 0.9 portfolio holding subject to review.
equity ratio and are available at low valuations, relative to their
No. of Stocks 18 50  NRI Investors: A separate PIS account shall be opened in the name of the investor and cheque should be drawn in
historical valuations and peer group sectors. The portfolio would
normally have low churn ratio. Cash/derivatives may be tactically Market Capitalization$ Rs. 45,513 Crs favor of the account holder.
used as a defensive/hedging tool at points in time.

Portfolio & Market Highlights:

Fund Manager Siddhartha Bhaiya
S&P CNX Nifty rose by around 9% during the month. Foreign
Institutional Investors (FII's) turned out to be net buyers to the
tune of approximately USD 1 billion, reversing the trend
Market Cap Classification as on 31st March 2011
witnessed in the previous 2 months when they were net sellers.
IIP numbers were low in the previous months due to high base. Classification# Investment
However, PMI numbers, tax collections, exports and credit Large Cap 44.3%
growth numbers suggest that growth momentum continues. Auto
numbers released during the month continue to be robust. Mid Cap 17.5%

Repo rate and Reverse Repo rate were raised by 25 bps to 6.75% Small Cap 15.4%
and 5.75% in order to contain demand side inflationary pressures Cash & Cash Equivalent 22.9%
while minimizing risks to growth. Fuel and manufactured product
prices may remain under pressure in the near term, as domestic
fuel prices are yet to adjust fully to global prices.
Top 5 Sectoral Holdings as on 31st March 2011
Several leading Indian corporates have paid more advance tax in *Portfolio P/E is based on FY12 RCAM estimates and is calculated based on weighted average harmonic mean. Nifty P/E FY12 estimates source Bloomberg consensus estimates.
Q4 FY11 as compared to the year-ago, indicating healthy 30%
27%
^Earnings growth for the portfolio is based on FY12 RCAM internal estimates, and Nifty growth is based on Bloomberg consensus estimates
financial performances. Aggregate revenue and net profit of Nifty @Risk adjusted return is from 1st April 2011 to 31st March 2011 and is calculated using the Sharpe Ratio where risk free rate of return is the G-Sec maturing in 2012 (7.45%).
25%
50 companies are expected to grow in double digits for the sixth 22% ~Portfolio Companies debt to equity is based on latest debt to equity ratio available on Capital Line.
consecutive quarter, according to ET Intelligence Group's 20% $Market Capitalization of the portfolio is the weighted average market capitalization as on 31thMarch 2011.
earnings forecast. A sample of Nifty companies shows that 14% 15% 14%
# Market Cap Classification of portfolio companies is as per MSCI Barra
15%
revenue is expected to grow by 21.2% during the March quarter The information mentioned in the portfolio and market highlights section is collated from www.sebi.gov.in,
10% 10%
from the year ago period. 10% 8%
7% Disclaimers & Risk Factors
The Nifty index is currently trading at 14.9 times FY12 earnings. 5% 3% The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the readers. This
During the month, no significant changes (in terms of purchase or information is meant for general reading purpose only and is not meant to serve as a professional guide for the readers. This document has been prepared
0%
sell of stocks) were done. The overall large cap exposure in the Oil E&P & BFSI Pharma Engineering IT
on the basis of publicly available information, internally developed data and other sources believed to be reliable. The Sponsor, The Investment Manager,
portfolio is 44% and with equity markets being extremely volatile, Refining
The Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy,
Nifty Portfolio completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has
large caps would provide adequate cushion to the portfolio. We been taken to ensure that the facts are accurate and opinions given fair and reasonable. This information is not intended to be an offer or solicitation for
have 23% cash in the portfolio and will look to deploy the same at the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own
an opportune time. investigations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.
None of The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct,
Portfolio Performance as on 31st March 2011 Top 10 Portfolio Holdings as on 31st March 2011 indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this
material. The Sponsor, The Investment Manager, The Trustee, any of their respective directors, employees including the fund managers, affiliates,
Period Portfolio Nifty Holdings Allocation representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or
Pfizer 7.6% sell the securities thereof, of company(ies) / specific economic sectors mentioned herein.
1 month 5.6% 9.4%
Absolute Freedom Option: A highly flexible investment option, which offers a diversified investment portfolio across both large cap and mid cap stocks.
Tata Consultancy Services 7.1% This option follows an aggressive approach to portfolio construction with focus on highly active money management, using cash as an investment tool;
3 month -3.7% -4.9%
HDFC Bank 6.9% and derivatives as a hedging tool.
6 month -8.8% -3.3% Investments in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of the Products will be achieved.
HDFC Limited 5.9% The investments may not be suited to all categories of investors. The value of the Portfolios can go up or down depending on various market factors. Past
1 year 9.9% 11.1% performance of the Portfolio Manager does not indicate the future performance of the Products or any other future Products of the Portfolio Manager.
Oil India 5.6%
Investors are not being offered any guaranteed or indicative returns through any of the Products. The names of the Products do not in any manner indicate
2 year 38.4% 39.0% their prospects or returns. The performance of the Products may be adversely affected by the performance of individual companies, changes in the market
Cairn India 5.5%
conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk.
3 year 7.5% 7.2% Bharat Electronics 4.8% Derivative/future and options products are affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk,
basis risk and other risk. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. In the case of stock
Inception 2nd Dec 2004 18.7% 18.8% Venkys India 4.3% lending, risks relate to the defaults from counterparties with regard to securities lent and the corporate benefits accruing thereon, inadequacy of the
collateral and settlement risks. The portfolio Manager is not responsible or liable for any loss resulting from the operations of the Products/ Portfolios. Each
Oil & Natural Gas Corp 4.2% portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non-Diversified Portfolio
Past performance may not be sustained in future. Returns of 1 year and above are
compounded annualized and less than 1 year is absolute returns. Individual client HPCL 4.0% tends to be more volatile than diversified portfolio. Please read the Disclosure Document before investing. Reliance Capital Asset Management
portfolios may differ from the performance displayed above. Returns mentioned Limited is registered with Securities & Exchange Board of India as a Portfolio Manager vide Registration Number PM/INP000000423 having
below are before expenses. registered office at “Reliance House” Nr. Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006
 Absolute Absolute
Freedom Portfolio Freedom Portfolio
Fact Sheet April 2011
Investment Strategy:
The investment strategy endeavours to create a diversified Key Highlights as on 31st March 2011 Investment Structure
portfolio spread across market capitalizations. The portfolio will Portfolio Nifty Minimum Investment : Rs. 50 Lacs
generally aim to hold around 25 stocks. This would ensure
meaningful positions in majority of the holdings. The top 10 Price / Earnings* 11.4 14.9 Suitable Investment Horizon : 3 years
holdings would generally comprise 50% of the portfolio value. The Earnings Growth^ 17.2% 16% Mode of Inflow:
intent is to identify, businesses having sustainable competitive
Risk Adjusted Returns@ 4.1% 3.3%  Domestic Investors: Cheque should be drawn in clients name only. Investors will also have the option to transfer their
advantage, scalability, ability to generate cash, high operating
margins, good return ratios, quality management, low debt to Debt / Equity~ 0.6 0.9 portfolio holding subject to review.
equity ratio and are available at low valuations, relative to their
No. of Stocks 18 50  NRI Investors: A separate PIS account shall be opened in the name of the investor and cheque should be drawn in
historical valuations and peer group sectors. The portfolio would
normally have low churn ratio. Cash/derivatives may be tactically Market Capitalization$ Rs. 45,513 Crs favor of the account holder.
used as a defensive/hedging tool at points in time.

Portfolio & Market Highlights:

Fund Manager Siddhartha Bhaiya
S&P CNX Nifty rose by around 9% during the month. Foreign
Institutional Investors (FII's) turned out to be net buyers to the
tune of approximately USD 1 billion, reversing the trend
Market Cap Classification as on 31st March 2011
witnessed in the previous 2 months when they were net sellers.
IIP numbers were low in the previous months due to high base. Classification# Investment
However, PMI numbers, tax collections, exports and credit Large Cap 44.3%
growth numbers suggest that growth momentum continues. Auto
numbers released during the month continue to be robust. Mid Cap 17.5%

Repo rate and Reverse Repo rate were raised by 25 bps to 6.75% Small Cap 15.4%
and 5.75% in order to contain demand side inflationary pressures Cash & Cash Equivalent 22.9%
while minimizing risks to growth. Fuel and manufactured product
prices may remain under pressure in the near term, as domestic
fuel prices are yet to adjust fully to global prices.
Top 5 Sectoral Holdings as on 31st March 2011
Several leading Indian corporates have paid more advance tax in *Portfolio P/E is based on FY12 RCAM estimates and is calculated based on weighted average harmonic mean. Nifty P/E FY12 estimates source Bloomberg consensus estimates.
Q4 FY11 as compared to the year-ago, indicating healthy 30%
27%
^Earnings growth for the portfolio is based on FY12 RCAM internal estimates, and Nifty growth is based on Bloomberg consensus estimates
financial performances. Aggregate revenue and net profit of Nifty @Risk adjusted return is from 1st April 2011 to 31st March 2011 and is calculated using the Sharpe Ratio where risk free rate of return is the G-Sec maturing in 2012 (7.45%).
25%
50 companies are expected to grow in double digits for the sixth 22% ~Portfolio Companies debt to equity is based on latest debt to equity ratio available on Capital Line.
consecutive quarter, according to ET Intelligence Group's 20% $Market Capitalization of the portfolio is the weighted average market capitalization as on 31thMarch 2011.
earnings forecast. A sample of Nifty companies shows that 14% 15% 14%
# Market Cap Classification of portfolio companies is as per MSCI Barra
15%
revenue is expected to grow by 21.2% during the March quarter The information mentioned in the portfolio and market highlights section is collated from www.sebi.gov.in,
10% 10%
from the year ago period. 10% 8%
7% Disclaimers & Risk Factors
The Nifty index is currently trading at 14.9 times FY12 earnings. 5% 3% The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the readers. This
During the month, no significant changes (in terms of purchase or information is meant for general reading purpose only and is not meant to serve as a professional guide for the readers. This document has been prepared
0%
sell of stocks) were done. The overall large cap exposure in the Oil E&P & BFSI Pharma Engineering IT
on the basis of publicly available information, internally developed data and other sources believed to be reliable. The Sponsor, The Investment Manager,
portfolio is 44% and with equity markets being extremely volatile, Refining
The Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy,
Nifty Portfolio completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has
large caps would provide adequate cushion to the portfolio. We been taken to ensure that the facts are accurate and opinions given fair and reasonable. This information is not intended to be an offer or solicitation for
have 23% cash in the portfolio and will look to deploy the same at the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own
an opportune time. investigations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments.
None of The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct,
Portfolio Performance as on 31st March 2011 Top 10 Portfolio Holdings as on 31st March 2011 indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this
material. The Sponsor, The Investment Manager, The Trustee, any of their respective directors, employees including the fund managers, affiliates,
Period Portfolio Nifty Holdings Allocation representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or
Pfizer 7.6% sell the securities thereof, of company(ies) / specific economic sectors mentioned herein.
1 month 5.6% 9.4%
Absolute Freedom Option: A highly flexible investment option, which offers a diversified investment portfolio across both large cap and mid cap stocks.
Tata Consultancy Services 7.1% This option follows an aggressive approach to portfolio construction with focus on highly active money management, using cash as an investment tool;
3 month -3.7% -4.9%
HDFC Bank 6.9% and derivatives as a hedging tool.
6 month -8.8% -3.3% Investments in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of the Products will be achieved.
HDFC Limited 5.9% The investments may not be suited to all categories of investors. The value of the Portfolios can go up or down depending on various market factors. Past
1 year 9.9% 11.1% performance of the Portfolio Manager does not indicate the future performance of the Products or any other future Products of the Portfolio Manager.
Oil India 5.6%
Investors are not being offered any guaranteed or indicative returns through any of the Products. The names of the Products do not in any manner indicate
2 year 38.4% 39.0% their prospects or returns. The performance of the Products may be adversely affected by the performance of individual companies, changes in the market
Cairn India 5.5%
conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk.
3 year 7.5% 7.2% Bharat Electronics 4.8% Derivative/future and options products are affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk,
basis risk and other risk. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. In the case of stock
Inception 2nd Dec 2004 18.7% 18.8% Venkys India 4.3% lending, risks relate to the defaults from counterparties with regard to securities lent and the corporate benefits accruing thereon, inadequacy of the
collateral and settlement risks. The portfolio Manager is not responsible or liable for any loss resulting from the operations of the Products/ Portfolios. Each
Oil & Natural Gas Corp 4.2% portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non-Diversified Portfolio
Past performance may not be sustained in future. Returns of 1 year and above are
compounded annualized and less than 1 year is absolute returns. Individual client HPCL 4.0% tends to be more volatile than diversified portfolio. Please read the Disclosure Document before investing. Reliance Capital Asset Management
portfolios may differ from the performance displayed above. Returns mentioned Limited is registered with Securities & Exchange Board of India as a Portfolio Manager vide Registration Number PM/INP000000423 having
below are before expenses. registered office at “Reliance House” Nr. Mardia Plaza, Off. C.G. Road, Ahmedabad 380 006