Dear Investor,   Subject: NFO of Reliance Infrastructure Fund (An Open Ended Equity Scheme) NFO Closes on 23 rd June 2009 We recommend you to make investments in this mutual fund given the following rationale and outlook of the Indian economy and Infrastructure sector.   Rationale Infrastructure spending has witnessed a sharp acceleration, riding on the back of the fourth consecutive year of 8%+ GDP growth, a balanced increase in the gross capital formation (GCF) in infrastructure as a proportion of GDP emerges as the most important key in sustaining high economic growth. Currently, the GCFI is at 5% of GDP. As per the Planning Commission, the CFI need to be increased to 9% of the GDP to sustain growth momentum in the economy. An ambitious reform programme initiative involving a shift from a controlled to an open market economy has opened doors for private sector / foreign investment in infrastructure projects such as energy, petroleum, telecommunications transportation sectors etc. And removal of regulatory and availability constraints on any product or service, has catalyzed investments, attracted competition and rationalized costs leading to a new growth trajectory. The infrastructure sector in the country is thus poised for accelerated growth in the coming years.   Infrastructure gaining momentum We observe a pick up of infrastructure spending in the economy, driven by strong political will and ease of project financing. An urgency to ensure commercial viability is now apparent across the board, and is being reflected across sectors. For instance, SEB losses are reducing, bottom-line of Indian Railways is improving and income of port authorities is rising. The momentum of private sector participation is also picking, with innovative financing concepts like ‘Public Private Partnerships' and ‘Viability Gap Funding'. According to a recent consultation paper, ‘Investment in Infrastructure' in the Eleventh Plan Period (FY07-12) issued by the Planning Commission, the total investment in infrastructure is expected to be Rs.20, 271 Billion ( USD 494 Billion ). The projected investment in infrastructure in the Eleventh Plan is 2.3x the amount in the Tenth Plan. Power (30%) form the biggest chunk of the planned expenditure while road, telecom and railways are the next big contributors. The largest inflection in investments is expected to be in ports, airports, railways, water supply and sanitation over the next five years.   Why invest in Reliance Infrastructure Fund? •  From India 's No 1 Mutual Fund with an AAUM of Rs 88,387.98 Crs* (as on 29th April 2009) •  Huge anticipated growth opportunity in the sector as reflected in the preceding paragraph. •  Market Valuations of Companies related to Infrastructure Sector attractive compared to potential growth. *Source : www.amfiindia.com   Investment Strategy The investment focus would be guided by the growth potential and other economic factors of the Country. The Fund intends to invest in companies related to infrastructure and in diversified companies, where a major portion of their revenues (primary activity) is derived from the infrastructure related activities. Infrastructure sector comprises of Energy, Power and Power Equipment, Oil & Gas and related industries, Petroleum and related industries, Coal, Mining, Aluminum and other Metal Industries, Steel and Steel Utilities, Engineering, Construction and Construction Related Industries, Cement, Transportation, Ports, Telecommunications, Housing, Banking and Financial Services and Healthcare and Related Industries. The Investment Manager may add such other sectors/ group of industries which broadly satisfy the category of being under Infrastructure Sector.   Product Features •  Type of Scheme : An Open-ended Equity Scheme •  New Fund Offer Price : Rs.10 plus applicable entry load •  Name of the Fund Manager : Sunil Singhania •  Minimum Application Amount: Rs 5,000/- •  Load Structure (New fund offer & SIP) Entry Load: 2.25% Exit Load: 1% if redeemed/switched on or before completion of 1 year from the date of allotment and Nil thereafter •  SIP : Minimum Additional Investment - Rs. 1,000 (plus in the multiple of Re.1) •  Investment Objective: The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and the secondary objective is to generate consistent returns by investing in debt and money market securities. •  Asset Allocation: Under normal circumstances, the proposed asset allocation would be: •  Plans Available: The scheme will have the following plans /options •  Growth Plan: Growth Option & Bonus Option •  Dividend Plan: Dividend Payout Option & Dividend Reinvestment Option •  Benchmark Index: BSE 100 Considering the investment in the fund made in equity /equity related securities of companies engaged in infrastructure sectors and infrastructure related sectors, BSE 100 is proposed as a benchmark since majority of the stocks relate to the sectors which would contribute to the infrastructure growth or to diversified companies, where a major portion of their revenues (primary activity) is derived from the infrastructure related activities. Members are requested to click here to place order via email for applying under power of attorney assigned to us. Non members are requested to Click here to download the form. Please send this duly filled form, PAN card copy and email it to us at mail@mideastportfolio.com or call us on 91-22-28240444 for placing an order or any other assistance required by you.   Thanks and Regards, PMS Team   .