abridged annual report for f.y. 2017-2018 hdfc... · 2018-08-02 · hdfc fmp 1128d march 2015 (1) -...

HDFC FMP 1128D March 2015 (1) - Series 331

ABRIDGED ANNUAL REPORT FOR F.Y. 2017-2018HDFC MUTUAL FUND

HDFC House, 2nd Floor, H. T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020.TEL: (022) 6631 6333 l FAX : (022) 2282 1144 l WEBSITE: www.hdfcfund.com

SPONSORSHousing Development Finance Corporation LimitedRegistered Office:Ramon House, H. T. Parekh Marg,169, Backbay Reclamation,Churchgate, Mumbai - 400 020.

Standard Life Investments LimitedRegistered Office:1 George Street, Edinburgh, EH2 2LL,United Kingdom.

TRUSTEEHDFC Trustee Company LimitedRegistered Office:HDFC House, 2nd Floor, H. T. Parekh Marg,165-166, Backbay Reclamation, Churchgate,Mumbai - 400 020.CIN : U65991MH1999PLC123026

ASSET MANAGEMENT COMPAN YHDFC Asset Management Company LimitedA Joint Venture with Standard Life InvestmentsRegistered Office:HDFC House, 2nd Floor, H. T. Parekh Marg,165-166, Backbay Reclamation, Churchgate,Mumbai - 400 020.CIN : U65991MH1999PLC123027

CUSTODIANHDFC Bank LimitedCustody Services,Lodha - I Think Techno Campus Office, Floor 8, Next to Kanjurmarg Railway Station, Kanjurmarg (East),Mumbai - 400 042.

STATUTOR Y AUDITORSS.R.Batliboi & Co. LLPChartered Accountants12th Floor, The Ruby,29 Senapati Bapat Marg,Dadar (West), Mumbai - 400 028

REGISTRAR AND TRANSFER AGENTComputer Age Management Services Pvt. LimitedNew No. 10, Old No. 178,M.G.R. Salai, Nungambakkam,Chennai - 600 034.

BOARD OF DIRECTORS(As at March 31, 2018)

HDFC Trustee Company LimitedMr. Anil Kumar Hirjee - ChairmanMr. V. Srinivasa RanganMr. Ranjan SanghiMr. Vimal Bhandari

BOARD OF DIRECTORS(As at March 31, 2018)

HDFC Asset Management Company LimitedMr. Deepak S. Parekh - ChairmanMr. N. Keith SkeochMr. Keki M. MistryMr. James AirdMr. P. M. ThampiMr. Humayun DhanrajgirDr. Deepak B. PhatakMr. Hoshang S. BillimoriaMr. Rajeshwar Raj BajaajMr. Vijay MerchantMs. Renu S. KarnadMr. Milind Barve - Managing Director

HDFC FMP 1128D MARCH 2015 (1) - HDFC FIXED MATURITY PLANS - SERIES - 33A CLOSE-ENDED INCOME SCHEME

TRUSTEE REPORTHDFC Trustee Company Limited (the “Trustee”) is pleased to present its 18th report and the audited financial statements of the Schemes of HDFC Mutual Fund (the “Fund”), for the year ended March 31, 2018.The Fund continues to be one of the largest Mutual Funds in India by Assets under Management (AUM). The AUM as at March 31, 2018 was ` 2,92,192.87 crore as against ` 2,32,829.65 crore as at March 31, 2017, representing an increase of 25.50%. The equity schemes’ assets constitute 28.51% of the total assets under management of the Fund as at March 31, 2018.

A. SCHEME CATEGORIZATION AND RATIONALIZATION:In order to bring uniformity across the Mutual Funds industry as regards the characteristics of similar type of schemes launched by various Mutual Funds, Securities and Exchange Board of India (“SEBI”) had released circulars dated October 6, 2017 and December 4, 2017 (“Circulars”). These Circulars mandated Mutual Funds to analyze each of the existing schemes in light of the categories stated in the Circulars and submit the proposals for restructuring their Schemes to SEBI on or before December 5, 2017. In accordance with the Circulars, all open ended Schemes of the Fund were reviewed and a proposal for restructuring / merger of the Schemes, approved by the Board of Directors of HDFC Asset Management Company Limited (“the AMC”) and HDFC Trustee Company Limited was filed with SEBI. After SEBI conveyed its no objection, the following changes to the Schemes were carried out (“the Scheme Categorization exercise”) after issuing public notice and after completion of 30 days exit option period provided to existing unitholders to exit without charging any exit load in case they were not agreeable to the said changes:Old Scheme Name and Type Type of Change New Scheme Name and Type Category Effective DateHDFC Corporate Debt Opportunities Fund (Open-ended Income Scheme)

l Change in Fundamental Attributes and other changes to HDFC Corporate Debt Opportunities Fund

• Change in Scheme Name• Change in Type of Scheme

HDFC Credit Risk Debt Fund [An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds)]

Credit Risk Fund Close of business hours on May 8, 2018

HDFC Regular Savings Fund (Open-ended Income Scheme)

Merger with HDFC Credit Risk Debt Fund (erstwhile HDFC Corporate Debt Opportunities Fund)

-

HDFC Cash Management Fund- Treasury Advantage Plan (Open-ended Income Scheme)

• Change in Fundamental Attributes and other changes


HDFC Low Duration Fund(An open ended low duration debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 6 months and 12 months)

Low Duration Fund

May 16, 2018


Old Scheme Name and Type Type of Change New Scheme Name and Type Category Effective DateHDFC Medium Term Opportunities Fund (Open-ended Income Scheme)

• Change in Fundamental Attributes and other changes to HDFC Medium Term Opportunities Fund


HDFC Corporate Bond Fund (An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds)

Corporate Bond Fund

Close of business hours on May 8, 2018

HDFC Floating Rate Income Fund - Long Term Plan (Open-ended Income Scheme)

Merger with HDFC Corporate Bond Fund (erstwhile HDFC Medium Term Opportunities Fund)

-

HDFC Gilt Fund - Short Term Plan(Open-ended Income Scheme)

-

HDFC Liquid Fund(Open-ended Liquid Income Scheme)


• Change in Type of Scheme

HDFC Liquid Fund(An Open ended Liquid scheme)

Liquid Fund May 16, 2018

HDFC Short Term Opportunities Fund(Open-ended Income Scheme)



HDFC Short Term Debt Fund(An open ended short term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 1 year and 3 years).

Short Duration Fund

HDFC High Interest Fund - Short Term Plan(Open-ended Income Scheme)



HDFC Medium Term Debt Fund(An open ended medium term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 3 years and 4 years)

Medium Duration Fund

HDFC Income Fund(Open-ended Income Scheme)



HDFC Income Fund(An open ended medium term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 4 years and 7 years)

Medium to Long Duration Fund

HDFC High Interest Fund - Dynamic Plan(Open-ended Income Scheme)



HDFC Dynamic Debt Fund(An open ended dynamic debt Scheme investing across duration)

Dynamic Bond Fund

HDFC Banking and PSU Debt Fund(Open-ended Income Scheme)



HDFC Banking and PSU Debt Fund(An open ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds)

Banking and PSU Fund

HDFC Gilt Fund - Long Term Plan(Open-ended Income Scheme)



HDFC Gilt Fund(An open ended debt scheme investing in government securities across maturity)

Gilt Fund

HDFC Floating Rate Income Fund - Short Term Plan(Open-ended Income Scheme)



HDFC Floating Rate Debt Fund[An open ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives)]

Floater Fund

HDFC Gold Exchange Traded Fund (Open ended Exchange Traded Fund)



HDFC Gold Exchange Traded Fund (An open ended scheme replicating / tracking performance of Gold)

Exchange Traded Fund (Gold)

HDFC Gold Fund (Open ended Fund of Fund scheme investing in HDFC Gold Exchange Traded Fund)


No Change Fund of Funds (Gold)

HDFC Equity Fund(Open-ended Growth Fund)



HDFC Equity Fund(An open ended equity scheme investing across large cap, mid cap & small cap stocks)

Multi Cap Fund May 23, 2018

HDFC Top 200 Fund(Open - ended Growth Fund)



HDFC Top 100 Fund(An open ended equity scheme predominantly investing in large cap stocks)

Large Cap Fund

HDFC Mid-Cap Opportunities Fund(Open-ended Equity Scheme)



HDFC Mid-Cap Opportunities Fund(An open ended equity scheme predominantly investing in mid cap stocks)

Mid Cap Fund

HDFC Small Cap Fund(Open-ended Equity Scheme)



HDFC Small Cap Fund(An open ended equity scheme predominantly investing in small cap stocks)

Small Cap Fund

HDFC Capital Builder Fund(Open-ended growth Scheme)



HDFC Capital Builder Value Fund(An open ended equity scheme following a value investment strategy)

Value Fund

HDFC Infrastructure Fund(Open-ended Equity Scheme)



HDFC Infrastructure Fund(An open-ended equity scheme following infrastructure theme)

Thematic Fund (Infrastructure)


Old Scheme Name and Type Type of Change New Scheme Name and Type Category Effective DateHDFC TaxSaver(An open-ended Equity Linked Savings Scheme with a lock-in period of 3 years)



HDFC TaxSaver(An Open-ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax benefit)

ELSS (Equity Linked Savings Fund)

May 23, 2018

HDFC Large Cap Fund(Open-ended Equity Scheme)



HDFC Growth Opportunities Fund(An open ended equity scheme investing in both large cap and mid cap stocks)

Large & Mid Cap Fund

HDFC Core & Satellite Fund(Open-ended Growth Scheme)


• Change in Scheme Name • Change in Type of Scheme

HDFC Focused 30 Fund(An open ended equity scheme investing in maximum 30 stocks in large-cap, mid-cap and small-cap category (i.e. Multi-Cap))

Focused Fund

HDFC Index Fund-NIFTY Plan(Open-ended Index Linked Scheme)



HDFC Index Fund-NIFTY 50 Plan(An open ended scheme replicating/tracking NIFTY 50 Index)

Index Fund (tracking NIFTY 50 Index)

HDFC NIFTY ETF(An open -ended Index Exchange Traded Fund [Rajiv Gandhi Equity Savings Scheme (RGESS) Qualified Scheme])



HDFC NIFTY 50 ETF(An open ended scheme replicating/ tracking NIFTY 50 Index)

Exchange Traded Fund (tracking NIFTY 50 Index)

HDFC SENSEX ETF(An open - ended Exchange Traded Fund)



HDFC SENSEX ETF(An open ended scheme replicating/ tracking S&P BSE SENSEX Index)

Exchange Traded Fund (tracking S&P BSE SENSEX Index)

HDFC Equity Savings Fund(Open-ended Equity Scheme)



HDFC Equity Savings Fund(An open ended scheme investing in equity, arbitrage and debt)

Equity Savings Fund

HDFC Children’s Gift Fund(Open-ended Balanced Scheme)



HDFC Children’s Gift Fund(An open ended fund for investment for children having a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier))

Children’s Fund

HDFC Arbitrage Fund(Open-ended Equity Scheme)



HDFC Arbitrage Fund(An open ended scheme investing in arbitrage opportunities)

Arbitrage Fund

HDFC Multiple Yield Fund - Plan 2005(Open-ended Income Scheme)



HDFC Multi-Asset Fund (An open ended scheme investing in Equity and Equity related instruments, Debt & Money Market Instruments and Gold)

Multi Asset Allocation Fund

HDFC Cash Management Fund - Savings Plan(Open-ended High Liquidity Income Scheme)



HDFC Money Market Fund(An open ended debt scheme investing in money market instruments)

Money Market Fund

Close of business hours on May 25, 2018

HDFC MF Monthly Income Plan - Long Term Plan #(Open-ended Income Scheme)



HDFC Hybrid Debt Fund(An open-ended hybrid scheme investing predominantly in debt instruments)

ConservativeHybrid Fund

HDFC MF Monthly Income Plan - Short Term Plan # (Open-ended Income Scheme)

Merger with HDFC Hybrid Debt Fund (erstwhile HDFC MF Monthly Income Plan - Long Term Plan)

-

HDFC Index Fund - SENSEX Plan(Open-ended index linked Fund)



HDFC Index Fund - SENSEX Plan (An open ended scheme replicating / tracking S&P BSE SENSEX Index)

Index Fund (tracking S&P BSE SENSEX Index)

HDFC Index Fund - SENSEX Plus Plan(Open-ended index linked Fund)

Merger with HDFC Index Fund - SENSEX Plan

-

HDFC Cash Management Fund - Call Plan(Open-ended High Liquidity Income Scheme)



HDFC Overnight Fund (An open ended debt scheme investing in overnight securities)

Overnight Fund Close of business hours on June 1, 2018

HDFC Retirement Savings Fund (An open ended notified Tax Savings Cum Pension Scheme with no assured returns)



HDFC Retirement Savings Fund [An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)]

Retirement Fund

HDFC Growth Fund(Open ended Growth Fund)



HDFC Balanced Advantage Fund(erstwhile HDFC Prudence Fund and HDFC Growth Fund)(An open ended Balanced Advantage Fund)

Balanced Advantage Fund

HDFC Prudence Fund(Open ended Balanced Scheme)

Merger into HDFC Balanced Advantage Fund


Old Scheme Name and Type Type of Change New Scheme Name and Type Category Effective DateHDFC Premier Multi-Cap Fund(Open-ended Growth Scheme)



HDFC Hybrid Equity Fund(erstwhile HDFC Balanced Fund and HDFC Premier Multi-Cap Fund)(An open ended hybrid scheme investing predominantly in equity and equity related instruments)

Aggressive Hybrid Fund

Close of business hourson June 1, 2018

HDFC Balanced Fund(Open ended Balanced Scheme)

Merger into HDFC Hybrid Equity Fund

HDFC Dynamic PE Ratio Fund of Funds (Open-ended Fund of Funds Scheme)



HDFC Dynamic PE Ratio Fund of Funds (An open ended Fund of Fund scheme investing in equity and debt schemes of HDFC Mutual Fund)

Fund of Funds

B. OTHER SCHEME MERGERS /CHANGES IN FUNDAMENTAL ATTRIBUTES:

HDFC Children’s Gift Fund was launched in March 2001 with two Plans viz. Investment Plan (Equity Oriented) and Savings Plan (Debt Oriented). It was observed that the Savings Plan was not able to generate much investor interest since its inception as compared to the Investment Plan. Hence, it was decided to merge the Savings Plan under the Scheme into the Investment Plan of the Scheme. Accordingly, the Savings Plan was merged into Investment Plan w.e.f. October 18, 2017 after completing necessary formalities.

C. LAUNCH OF NEW SCHEMES/ PLANS During the year, the Fund continued to launch simple and innovative

products / facilities for the investors as under:

HDFC Equity Opportunities Fund – Series II (Two Plans) Two Plans were launched under the close-ended equity scheme series with

maturity of over 3 years in the months of May and June of 2018. The Plans follow a strategy to benefit from the overall economic recovery by investing in a diversified portfolio of equity stocks, while also taking exposure to NIFTY 50 put options to limit downside, if any, from the equity markets.

The Two Plans mobilized assets of ̀ 1,134 crore and ̀ 721 crore respectively, during the New Fund Offer.

HDFC Housing Opportunities Fund - Series I In the month of November 2017, the Fund launched HDFC Housing

Opportunities Fund – Series I, a first of its kind close-ended thematic equity scheme, focusing on equities of companies in housing and its allied business activities. The Fund invests a minimum of 80% in equities and upto 20% in debt and money market instruments.

The Fund aims to benefit from the expected growth in housing and allied businesses owing to the government push towards affordable housing that is likely to impact a host of sectors / industries thereby providing an investment opportunity. The Scheme mobilized assets of worth ` 3,389 crore during the New Fund Offer.

In addition to the above, the Fund has launched various Schemes under Fixed Maturity Plans Series - 38 and Series - 39.

HDFC Mutual Fund did not launch any open ended mutual fund schemes during the year as we focused on growing the existing funds. We would continue to be selective when it comes to launching of new fund offerings.

As at March 31, 2018, the Fund offered 133 schemes (portfolios) across asset classes to meet the varying investment needs of investors.

D. INVESTOR SERVICE INITIATIVES The Fund has a strong retail focus with over 80 lac investors being serviced

by the Fund. During the year, almost 15 lac new Systematic Investment Plans (SIPs) and over 1.30 lac new Systematic Transfer Plans (STPs) were registered by the Fund. The Fund continued to introduce new facilities for Unit holders with its primary focus on promoting electronic transactions.

As AMFI put its weight behind Mutual Funds with ad campaigns in all media, the Fund thought it was time to move from communicating the benefits of Mutual Funds to try to convince investors about SIP. SIP is arguably the best mode of investing in Mutual Funds.

A multi-media campaign was run in TV, Print, Digital, Outdoor with ‘SIP-a healthy habit’ as the theme. While the TV, Print and Outdoor campaigns were done in two phases, an ‘always-on’ approach was followed on digital. A micro-site dedicated to Children’s Education was launched. It has more than 25 articles and will be leveraged in running digital campaigns on the same theme. Two 20sec videos, one on jogging and the other on yoga, were made with just this medium in mind and were run as you-tube pre-rolls, on hotstar, etc. An SIP New Year Resolution campaign was run on twitter.

With changing media consumption habits, people are spending large amount of time on WhatsApp and reading less. Many videos on concepts like SIP Top Up, Financial Planning, etc. were made. A large number of infographics were also made especially for this medium.

Engagement with kids and their parents was enabled through Pratham Books Money series. This series takes kids through the story of money, right from its invention, its journey, use and its management. A tie-up with Crossword Bookstore’s painting competition also helped engage with kids and their parents in various cities.

E. DIVIDENDS: Dividends were declared under various schemes as per the provisions

contained in the respective Scheme Information Documents, after considering the distributable surplus available under the respective Schemes. Details of dividends declared can be viewed on website viz. www.hdfcfund.com.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS The Fund continues its focus on delivering long-term returns. Scheme specific

comments on performance are provided hereinafter.

A. SCHEME PERFORMANCE AND OPERATIONS

v HDFC Fixed Maturity Plans - Close-ended Income Schemes During the year under review, the Fund managed HDFC Fixed Maturity Plans, closed-ended income schemes, comprising several investment Plans that seek to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s).Each Plan is managed as a separate portfolio.The Scheme has performed in line with the yields prevailing for the relevant tenures at the time of launch.Please refer Annexure 1 for the performance/ returns as at March 31, 2018 / Date of Maturity.

B. FUTURE OUTLOOK

Fund OutlookWe aim to offer need-based and customer-centric products that address the core needs of our diversified customer base. We typically exercise discipline in launching new funds and prefer to focus on growing our existing funds. However, we continuously seek feedback from our investment team, distributor network and customers to cater to customer demands and market trends, which we utilize to adjust existing products or launch new products. Our deep experience has provided us with significant know-how to develop and provide investment products across various customer segments, economic conditions and market cycles. As part of our product development strategy, we intend to continue developing products for our customers based on investment opportunities identified by our investment team and which complement our existing product suite. For example, in Fiscal 2018, we launched three equity-oriented schemes, HDFC Equity Opportunities Fund (two series) and HDFC Housing Opportunities Fund, each of which has distinct investment strategies aimed at catering to potential market opportunities we had identified.At the close of FY 18, the process of SEBI’s categorization and rationalization mutual fund schemes was underway. Post implementation of these changes, we will be selective when it comes to launching of new strategies. Our focus will be to build on the existing strategies with an effort to deepen customer engagement through our various channels of distribution. Through our diverse range of product offerings, we are equipped to provide solutions to a variety of customer requirements and risk profiles and we believe that we are well positioned to continue to cater to new and existing customers.

Debt Markets OutlookIn the backdrop of demonetisation and implementation of Goods & Service Tax (GST), India’s GDP growth in first half of FY18 was subdued at 6.1%. In the second half of FY18, on the back of improved manufacturing and healthy credit growth, GDP growth revived to 7.4%.The huge liquidity surplus built up post demonetization reduced substantially during FY18 (Exhibit 1). As against INR 3.13 lac crores of surplus liquidity absorbed by RBI at the beginning of FY18, about INR 0.60 lac crores of liquidity


was injected by RBI at the end of FY18. After remaining depressed for a year, resurgence in credit (Exhibit 2) was observed in second half of FY18 with off-take being led by retail credit demand. During the same period, deposit growth (Exhibit 2) was muted on account of cash withdrawals and lower deposit rates.Exhibit 1:

Source: RBI

Exhibit 2:

Source: RBIOn the back of higher oil import bill (Exhibit 4) and elevated commodity prices (Exhibit 5), current account deficit (CAD, as % of GDP) deteriorated to 1.9% in FY18 and is expected to further worsen to nearly 2.5% in FY19 (as per Macquarie Research). Further, external capital flows, especially debt FII inflows (USD 18.5bn), which supported the Balance of Payments (BoP) in FY18 (Exhibit 3), are likely to partially reverse and may turn BoP into deficit in FY19.

Exhibit 3: Net FII Inflows / (-) Outflows

USD BnAnnual Recent trend

FY16 FY17 FY18 9MFY18 Jan'18 Feb'18 Mar'18 Apr'18 May'18 June'18*Debt -0.5 -0.9 18.5 18.6 1.3 -0.0 -1.4 -1.5 -2.9 -1.4

Equity -2.0 8.5 4.0 1.8 2.2 -1.8 1.8 -0.8 -1.5 -0.6Total -2.50 7.5 22.5 20.4 3.5 -1.8 0.4 -2.4 -4.4 -2.0

Source: NSDL, * updated till 25th Jun’18Thus, the outlook for BoP in FY19 is a difficult one and rising US yields (Exhibit 6) creates a depreciating bias for INR. However, healthy foreign exchange reserves and support from RBI should moderate the decline of INR.

Exhibit 4:

Exhibit 5:

Source: Bloomberg*CRY index stands for Thomson Reuters/Core Commodity CRB Commodity Index. It acts as a representative indicator of global commodity markets and measures the aggregated price direction of various commodity sectors.

Exhibit 6:

Source: BloombergThe Indian Meteorological Department (IMD) expects a low likelihood of El Nino and has predicted a normal monsoon for FY19, which should boost agricultural production and rural demand. As announced in the FY19 Union budget, government plans to keep Minimum Support Prices (MSPs) of kharif crops at a minimum of 1.5 times the production cost. This could result in MSPs for key crops like rice, maize etc. to rise materially, pushing inflation higher.Headline and core Consumer Price Index (CPI) (Exhibit 7) has been inching up on the back of broad based price rise and partly due to base effect. In our opinion, given the rising global commodity and oil prices, likely increase in MSPs, salary revision by state governments and strengthening demand, CPI is likely to show a firming trend in H1FY19. Headline CPI is expected to moderate in the second half but may still overshoot RBI estimate of 4.7% for H2FY19. Exhibit 7:

Source: CMIE; *Core CPI = CPI ex food, fuel, housing and transportation


2. BRIEF BACKGROUND OF SPONSORS, TRUST, TRUSTEE COMPANY AND ASSET MANAGEMENT COMPANY

a. SPONSORS HDFC Mutual Fund is sponsored by Housing Development Finance

Corporation Limited and Standard Life Investments Limited. The Co-Sponsors are the Settlors of the Mutual Fund Trust. The Co-Sponsors have entrusted a sum of ` 1 lakh each to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC provides financial assistance to individuals, corporates and developers for the purchase or construction of residential housing. HDFC has a client base of over 2.70 million borrowers, over 0.65 million depositors, over 0.24 million shareholders and over 43,653 deposit agents, as at March 31, 2018.

As at March 31, 2018, HDFC had mortgage loan assets of ` 3,594 billion. Since inception, HDFC has financed over 6.3 million housing units. Over 76% of shareholders in HDFC are foreign investors. HDFC’s market capitalisation as at March 31, 2018 stood at around ` 3,060 billion.

HDFC‘s borrowings consists of, domestic term loans from banks and insurance companies, bonds and retail deposits. HDFC has received the highest rating for its bonds and deposits program for Twenty-three years in succession.

As part of HDFC’s diversification initiatives, the company has set up institutions in various fields including Banking, Insurance, life and General, Asset Management, Real Estate Venture Fund, Real Estate and Education Finance. It had also set up companies for Credit Rating, Consumer Finance, Securities Trading and IT-enabled services which it has exited.

Over the years, the HDFC group has emerged as a strong financial conglomerate in the Indian capital markets with a presence in banking, life and general insurance, asset management and venture capital. HDFC’s key associate and subsidiary companies include HDFC Bank Limited, HDFC Standard Life Insurance Company Limited, HDFC Ergo General Insurance Company Limited, HDFC Asset Management Company Limited, GRUH Finance Limited, HDFC Venture Capital Limited, HDFC Sales Private Limited and HDFC Credila Financial Services Private Limited. For more information log on to www.hdfc.com

STANDARD LIFE INVESTMENTS LIMITED Standard Life Assurance Company (“Standard Life”) was, founded in 1825

and present in the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. Standard Life re-entered the Indian market in 1995, launching an insurance joint venture with HDFC.

In 1998, Standard Life Investments launched as a separate company, rapidly becoming a leading global asset manager. In 2017, Standard Life merged with Aberdeen Asset Management forming the Standard Life Aberdeen Group.

Standard Life Aberdeen is one of the world’s largest investment companies, dedicated to creating long-term value for clients and shareholders.

On completion of the merger, Standard Life Investments Limited remains a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life Aberdeen plc, the ultimate parent of the Standard Life Aberdeen Group.

While retaining distinct investment philosophies and processes, Standard Life Investments and Aberdeen Asset Management share a set of common investment beliefs. The combined investment business has a substantial global presence with clients across 80 countries and £575.7 bn assets under management*. It manages a diverse portfolio covering all major markets world-wide, including a range of private and public equities, government and company bonds, property investments and various derivative instruments. For more information log on to www.aberdeenstandard.com

*AUM of Aberdeen Standard Investments based on a pro-forma basis as at 31 December 2017.

b. HDFC MUTUAL FUND HDFC Mutual Fund (the “Fund”) has been constituted as a trust in accordance

with the provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 and deeds of variation dated June 11, 2003 and June 19, 2003 respectively (“Trust Deed”), with Housing Development Finance Corporation Limited (“HDFC”) and Standard Life Investments Limited as the Co-Sponsors / Settlors and HDFC Trustee Company Limited, as the Trustee.

The Trust Deed has been registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated June 8, 2000 with HDFC Asset Management Company Ltd. to function as the Investment Manager for all the Schemes of the Fund. The Fund was registered with SEBI on June 30, 2000.

c. HDFC TRUSTEE COMPANY LIMITED HDFC Trustee Company Limited (the “Trustee”) is the exclusive owner of the

Trust Fund and holds the same in trust for the benefit of the Unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 (the “Regulations”) and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated thereunder are managed by HDFC Asset Management Company Limited in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

As at March 31, 2018, HDFC holds 100% of the paid-up equity share capital of HDFC Trustee Company Limited.

During the year under review, Mr. Shishir Diwanji resigned as a Director and Mr. Vimal Bhandari was appointed as an Additional (Independent) Director on the Board of HDFC Trustee Company Limited with effect from May 27, 2017.

d. HDFC ASSET MANAGEMENT COMPANY LIMITED HDFC Asset Management Company Limited (“HDFC AMC”) is a public

limited company incorporated under the Companies Act, 1956 on December 10, 1999. HDFC AMC has been appointed as the Asset Management Company of HDFC Mutual Fund by the Trustee vide Investment Management Agreement (“IMA”) dated June 8, 2000, and executed between HDFC Trustee Company Limited and HDFC AMC. HDFC AMC was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. HDFC AMC is also registered with SEBI as a Portfolio Manager. Further, HDFC AMC shall also act as investment manager for HDFC AMC AIF - II (“AIF Fund”), a Category II Alternative Investment Fund.

Further, HDFC AMC offers management and/or advisory services to (a) Category I foreign portfolio investors; and/or (b) Category II foreign portfolio investors which are appropriately regulated broad based funds investing in India through fund manager(s) managing the schemes of the Fund (“Business Activity”) as permitted under Regulation 24(b) of the SEBI (Mutual Funds) Regulations, 1996, as amended from time to time (“the Regulations”). The services provided by HDFC AMC for the said Business Activity inter-alia includes India focused research, statistical and analytical information, investment management and non-binding investment advice.

During the year under review, there has been no change in the composition of the Board of Directors of HDFC AMC.

Shareholding Pattern During the year under review, there has been a change in the equity

shareholding pattern of HDFC AMC. The equity shareholding pattern as at March 31, 2018 of HDFC AMC is as follows:

Name of the Equity Shareholders % of the paid-up equity capital

Housing Development Finance Corporation Limited (HDFC) 57.36

Standard Life Investments Limited (SLI) 38.24Other Shareholders (shares issued on exercise of stock options) 4.40

3. INVESTMENT OBJECTIVE OF THE SCHEME

Name of the Scheme Investment ObjectiveHDFC Fixed Maturity Plan To generate income through investments

in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the Plan.

4. SIGNIFICANT ACCOUNTING POLICIES The Significant Accounting Policies form part of the Notes to the Accounts

annexed to the Balance Sheet of the Schemes in the Full Annual Report. The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, 1996.


5. UNCLAIMED DIVIDENDS & REDEMPTIONSSummary of No. of Investors & Corresponding unclaimed amounts as at March 31, 2018:Name of the Scheme Unclaimed Redemption Unclaimed Dividend

Amount (`)

Count of instruments

Amount (`)

Count of instruments


- - - -

6. STATUTORY INFORMATION a. Housing Development Finance Corporation Limited and Standard Life

Investments Limited (the Co-Sponsors) are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution of ` 1 lakh each for setting up the Fund, and such other accretions / additions to the same.

b. The price and redemption value of the Units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments.

c. Full Annual Report shall be disclosed on the website (www.hdfcfund.com) and shall be available for inspection at the Head Office of HDFC Mutual Fund. On written request, present and prospective Unitholder can obtain copy of the trust deed, the full Annual Report of the Fund / HDFC AMC at a price and the text of the relevant scheme.

7. ACKNOWLEDGEMENTS The Trustee thanks SEBI, AMFI, Exchange(s), Depositories, the investors,

Investor Service Centres, distributors, key partners, service providers, HDFC AMC and its employees for their commitment and looks forward to their continued support.

For and on behalf of the Board of Directors HDFC Trustee Company Limited

Place : Mumbai Vimal BhandariDate : June 27, 2018 Director

ANNEXURE 1 - PERFORMANCE / RETURNS OF HDFC FIXED MATURITY PLANS AS AT MARCH 31, 2018 / DATE OF MATURITYReturns (%)^* AUM as on March 31,

2018 / Date of Maturity(` in crore)

Scheme/ Plan Name Date of Allotment/Inception

Date ofMaturity

1 Year 3 Years SinceInception

HDFC FMP 1128D March 2015 (1) - Regular Plan 26-Mar-15 26-Apr-18 83.69Growth Option 6.82 8.04 8.08HDFC FMP 1128D March 2015 (1) - Direct PlanGrowth Option 7.14 8.37 8.40CRISIL Composite Bond Fund Index # 5.06 8.12 8.23

^ Past Performance may or may not be sustained in future* Returns greater than 1 year are coumpounded annualized (CAGR). Returns less than 1 year are absolute.In case of Plans matured, the returns are calculated from the date of allotment till the date of maturity.# Benchmark IndexFace Value: ` 10 per unitN.A. – Not Available / Not Applicable


To the Trustees of HDFC Mutual Fund - HDFC Fixed Maturity Plan - 1128D March 2015 (1) - Series 33

Report on the Financial Statements

We have audited the accompanying financial statements of HDFC Fixed Maturity Plan - 1128D March 2015 (1) - Series 33 (“the Scheme”), which comprise the Balance Sheet as at 31 March 2018, the Revenue Account and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management of HDFC Asset Management Company Limited, the scheme’s asset manager, is responsible for the preparation of the financial statements that give a true and fair view of the financial position, financial performance and cash flow of the Scheme in accordance with accounting principles generally accepted in India, including the accounting policies and standards specified in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (‘the Regulations’). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Scheme’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the SEBI Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the balance sheet, of the state of affairs of the Scheme as at 31 March 2018;

(b) in the case of the revenue account, of the Surplus of the Scheme for the year ended on that date; and

(c) in the case of the cash flow statement, of the cash flows of the Scheme for the year ended on that date.

Report on Other Legal and Regulatory Requirements

• As required by Regulation 55(4) and clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that:

We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

In our opinion, the balance sheet and revenue account dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule to the Regulations.

The balance sheet, revenue account and cash flow statement, dealt with by this report are in agreement with the books of account of the Scheme.

• In our opinion, and on the basis of information and explanations given to us, the methods used to value non traded securities as at 31 March 2018 are in accordance with the Regulations and other guidelines issued by the Securities and Exchange Board of India and approved by the Board of Directors of HDFC Trustee Company Limited, and are fair and reasonable.

For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005

Sd/- per Jayesh Gandhi Partner Membership Number: 37924

Place: Mumbai Date: 27 June, 2018

INDEPENDENT AUDITOR’S REPORT


ABRIDGED BALANCE SHEET AS AT MARCH 31, 2018

` in LakhsAs at

Mar 31, 2018As at

Mar 31, 2017

LIABILITIESUnit Capital 6,588.87 6,588.87 Reserves & Surplus

Unit Premium Reserves - - Unrealised Appreciation Reserve - 56.97 Other Reserves 1,780.63 1,171.81

Loans & Borrowings - - Current Liabilities & Provisions

Provision for doubtful Income/Deposits - - Other Current Liabilities & Provisions 1.76 0.82

TOTAL 8,371.26 7,818.47

ASSETSInvestments

Gold - - Listed Securities:

Equity Shares - - Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds 4,726.31 7,312.15 Securitised Debt securities - -

Securities Awaited Listing:Equity Shares - - Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds - - Securitised Debt securities - -

Unlisted SecuritiesEquity Shares - - Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds - - Securitised Debt securities - -

Government Securities - - Treasury Bills - - Commercial Paper - - Certificate of Deposits 2,992.54 - Bill Rediscounting - - Units of Domestic Mutual Fund - - Foreign Securities - -Total Investments 7,718.85 7,312.15 Deposits - - Other Current Assets

Cash & Bank Balance 4.59 4.79 CBLO/Reverse Repo Lending 33.18 217.21 Others 614.64 284.32

Deferred Revenue Expenditure - - (to the extent not written off)

TOTAL 8,371.26 7,818.47

ABRIDGED REVENUE ACCOUNT FOR THE PERIOD APRIL 1, 2017 TO MARCH 31, 2018

` in LakhsCurrent

YearPrevious

Year

INCOMEDividend - -

Interest 659.91 616.38 Realised Gain/(Loss) on Foreign Exchange Transactions - -

Realised Gains/(Losses) on Interscheme sale of investments (27.09) -

Realised Gains/(Losses) on External sale/redemption of investments (3.58) -

Realised Gains/(Losses) on Derivative Transactions - -

Other Income (Refer Note 5) - 0.05

(A) 629.24 616.43

EXPENSES

Management fees 7.57 6.92

Service tax on Management fees 1.33 1.04

Transfer agents fees and expenses 0.61 0.67

Custodian fees 0.40 0.36

Trusteeship fees 0.07 0.08

Commission to Agents - -

Marketing & Distribution expenses - -

Audit fees 0.05 0.05

Interest on Borrowings - -

Transaction costs (Refer Note 7) 0.03 0.03

Investor Education and Awareness expenses 1.62 1.50

Other operating expenses* 0.01 0.21

(B) 11.70 10.87

NET REALISED GAINS/(LOSSES) FOR THE YEAR/PERIOD (A -B=C) 617.54 605.56

Change in Unrealised Depreciation in value of investments (D) 65.44 (46.49)

NET GAINS/(LOSSES) FOR THE YEAR/PERIOD (E=(C-D)) 552.10 652.05

Change in unrealised appreciation in the value of investments (F) - -

NET SURPLUS/(DEFICIT) FOR THE YEAR/PERIOD (E+F=G) 552.10 652.05

Add: Balance transfer from Unrealised Appreciation Reserve 56.97 10.48 Less: Balance transfer to Unrealised Appreciation Reserve - (56.97)Add/(Less): Equalisation - -

Total 609.07 605.56

Dividend appropriation

Income Distributed during the year/period 0.18 0.20 Tax on income distributed during the year/period 0.07 0.08

Retained Surplus/(Deficit) carried forward to Balance sheet 608.82 605.29

* Expenses recovered from Asset Management Company are included in other operating expenses.


Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2018

1 Investments:-

1.1. All investments of the scheme except Government Securities and Treasury Bills are registered in the name of the Trustees for the benefits of the Schemes Unitholders. All investments in Government Securities and Treasury Bills are held in an SGL account in the name of “HDFC Mutual Fund”.

1.2. Open Position of derivatives as at March 31, 2018 is ̀ Nil (as at March 31, 2017 was ` Nil).

1.3. Investments in Associates and Group Companies.

Refer Annexure III

1.4. There are no open position of securities borrowed and/or lent by the scheme as at March 31, 2018 and as at March 31, 2017.

1.5. Non Performing Assets as at March 31, 2018 is ` Nil (as at March 31, 2017 was ` Nil).

1.6. The Aggregate Unrealised Gain/(Loss) as at March 31, 2018 is ` (8.47) Lakhs (as at March 31, 2017 was ` 56.97 Lakhs) and as a percentage of net assets of the scheme as at March 31, 2018 is (0.10)% (as at March 31, 2017 was 0.73%).

1.7. The Aggregate value of investments purchased and sold (including matured) during the financial year and as a percentage of average weekly net assets are as under:

Purchase Value (` in Lakhs)

% Sales Value (` in Lakhs)

%

Current Year 4,506.19 55.67 4,176.58 51.60Previous Year 382.31 5.09 - -

1.8. The aggregate fair value of non-traded investments, valued in ‘good faith’ by the Investment Manager on the basis of the valuation principles laid down by SEBI as at March 31, 2018 is ` 7,718.86 Lakhs (as at March 31, 2017 was ̀ 6,988.95 Lakhs) and as a percentage of net assets of the scheme as at March 31, 2018 is 92.23% (as at March 31, 2017 was 89.4%).

2 Disclosure Under Regulation 25(8) of the SEBI Regulations and other applicable Regulations.

Refer Annexure IV

3 There are no Unit Holders holding over 25% of the Net Asset Value of the Scheme as at March 31, 2018 and as at March 31, 2017.

4 Unit Capital movement during the year ended March 31, 2018.

Refer Annexure II

5 Other Income, if any includes load credited to scheme, compensation and expense reimbursed by AMC.

6 Expenses other than management fee are inclusive of service tax wherever applicable.

7 Transaction costs represent, costs incurred from November 01, 2012 which are charged to the scheme and not considered for computation of the total expense ratio as per SEBI Notification dated September 26, 2012.

8 Prior year figures have been reclassified wherever necessary.

9 Contingent Liability as at March 31, 2018 is ̀ Nil (as at March 31, 2017 was ` Nil).

Annexure II - Unit Capital Movement(Figures in Lakhs)

Particulars March 31, 2018 March 31, 2017

Units ` Units `

(A) Growth OptionAt the beginning of the year 295.162 2,951.62 295.162 2,951.62Issued during the year - - - -

295.162 2,951.62 295.162 2,951.62Repurchased during the year - - - -At the end of the year (A) 295.162 2,951.62 295.162 2,951.62

(B) Dividend OptionAt the beginning of the year 0.260 2.60 0.260 2.60Issued during the year (including dividend reinvested) - - - -

0.260 2.60 0.260 2.60Repurchased during the year - - - -At the end of the year (B) 0.260 2.60 0.260 2.60

(C) Quarterly Dividend OptionAt the beginning of the year 0.307 3.07 0.307 3.07Issued during the year - - - -

0.307 3.07 0.307 3.07Repurchased during the year - - - -At the end of the year (C) 0.307 3.07 0.307 3.07

(D) Direct Plan - Growth OptionAt the beginning of the year 362.928 3,629.28 362.928 3,629.28Issued during the year - - - -

362.928 3,629.28 362.928 3,629.28Repurchased during the year - - - -At the end of the year (D) 362.928 3,629.28 362.928 3,629.28

(E) Direct Plan - Dividend OptionAt the beginning of the year 0.200 2.00 0.200 2.00Issued during the year (including dividend reinvested) - - - -

0.200 2.00 0.200 2.00Repurchased during the year - - - -At the end of the year (E) 0.200 2.00 0.200 2.00

(F) Direct Plan - Quarterly Dividend OptionAt the beginning of the year 0.030 0.30 0.030 0.30Issued during the year (including dividend reinvested) - - - -

0.030 0.30 0.030 0.30Repurchased during the year - - - -At the end of the year (F) 0.030 0.30 0.030 0.30TOTAL (A)+(B)+(C)+(D)+(E)+(F) 658.887 6,588.87 658.887 6,588.87

Face Value of units is ` 10/-.


Annexure III - Investment in Associates and Group Companies

Current Year (` in Lakhs)

Nature of instruments Commercial Paper Deep Discount Bonds Equity Shares NCD/Khokha Bills RediscountingName of the Issuer # Investment

by the scheme

Aggregate Investment

by all schemes

Investment by the scheme


by all schemes



by all schemes



by all schemes



by all schemes

ABB India Ltd. - - - - - 38,277.66 - - - -Bosch Ltd. - - - - - 3,326.63 - - - -Cadila Healthcare Ltd. - - - - - 5,700.37 - - - -Credila Financial Services Pvt. Ltd. - - - - - - - 32,581.16 - -HDFC Bank Ltd. - - - - - 322,632.73 - 208,785.49 - 98,101.10HDB Financial Services Ltd. - - - 42,231.52 - - - 173,131.53 - -HDFC Standard Life Insurance Co. Ltd. - - - - 19,604.86 - - - -Housing Development Finance Corporation Ltd. - - - 462,126.56 - 232,541.02 - 2,731,542.99 - -HCL Technologies Ltd. - - - - - 21,742.78 - - - -Indian Hotels Company Ltd. - - - - - 20,100.65 - - - -Mahindra & Mahindra Ltd. - - - - - 28,096.60 - - - -Maruti Suzuki India Ltd. - - - - 179,224.89 - - - -Network 18 Media & Investments Ltd. - - - - - 16,553.25 - - - -Siemens Ltd. - - - - - 24,308.68 - - - -Sun Pharmaceutical Industries Ltd. - - - - - 60,480.81 - - - -Torrent Power Ltd. - - - - 1,066.59 - - - -Total - - - 504,358.08 - 973,657.51 - 3,146,041.18 - 98,101.10

Previous Year (` in Lakhs)

Nature of instruments Commercial Paper Deep Discount Bonds Equity Shares NCD/Khokha Bills RediscountingName of the Issuer # Investment

by the scheme


by all schemes



by all schemes



by all schemes



by all schemes



by all schemes

ABB India Ltd. - - - - - 1,905.18 - - - -Bosch Ltd. - - - - - 7,403.15 - - - -Cadila Healthcare Ltd. - - - - - 2,102.12 - - - -Credila Financial Services Pvt. Ltd. - - - - - - - 2,513.71 - -HDFC Bank Ltd. - - - - - 266,452.81 - 22,489.22 - -HDB Financial Services Ltd. - 14,900.18 - 88,255.82 - - - 102,108.01 - -Housing Development Finance Corporation Ltd. - - - 290,458.17 - 52,946.10 - 1,538,371.59 - -HCL Technologies Ltd. - - - - - 51,444.66 - - - -Indian Hotels Company Ltd. - - - - - 34,452.93 - - - -Mahindra & Mahindra Ltd. - - - - - 18,927.21 - - - -Network 18 Media & Investments Ltd. - - - - - 3,147.65 - - - -Siemens Ltd. - - - - - 7,922.95 - - - -Strides Shasun Ltd. - - - - - 1,203.66 - - - -Sun Pharmaceutical Industries Ltd. - - - - - 44,259.10 - - - -Total - 14,900.18 - 378,713.99 - 492,167.53 - 1,665,482.52 - -

The above report includes summation of gross values of Purchase & sale of investments.# This disclosure has been made as Director(s) of the AMC is/are also a Director on the Board of the above Companies. The above investments were considered sound at the point of investment. Before making an investment, the same is evaluated on merits and on arm’s length basis and in accordance with the objective of the scheme. The investments under the respective Plans of HDFC Index Fund were made pursuant to their Investment Objectives.


Annexure IVDisclosure under Regulation 25 (8) of the SEBI Regulations as amended(i) Disclosure under Regulation 25(8) of the SEBI Regulation have been made in

respect of amount paid to parties associated with sponsors in which the Asset Management Company or its major shareholders have a substantial interest as in accordance with the requirements given in SEBI’s Circular No. SEBI/IMD/CIR No. 18/198647/2010 dated March 15, 2010.

(a) No brokerage on investments is paid to associates/related parties/group companies of sponsor/AMC during the current year and previous year.

(b) Commission on distribution of units to associates/related parties/group companies of sponsor/AMC.

Current YearNo commission is paid on distribution of units paid to associates/related parties/group companies of sponsor/AMC.

Previous YearNo commission is paid on distribution of units paid to associates/related parties/group companies of sponsor/AMC.

Pursuant to SEBI directives, no payment of commission has been made in respect of investments made by the Sponsor of the Mutual Fund.

The above amount represents payments made to associates and is netted for the amount borne by the AMC, if any.

(ii) The Scheme has made payments to its associates, for services rendered by them, during the year as under: -Entity Nature of

PaymentAmount

(` in Lakhs)% of equity capital

held by the sponsors & its subsidiary/

associatesCurrent

YearPrevious

YearMarch

31, 2018March

31, 2017HDFC Asset Management Company Ltd.

Investment Management and Advisory Fees 8.90 7.96 95.60*# 99.98*

HDFC Trustee Company Ltd.

Trusteeship Fees0.07 0.08 100** 100**

HDFC Bank Ltd. Custody Charges/Professional Clearing Charges ~ 0.40 0.36 20.93$ 21.20$

Computer Age Management Services Pvt. Ltd.

Registrar and Transfer Agent Fees 0.61 0.67 17.26@# 17.26@#

(iii) Amounts outstanding as at the Balance Sheet date :-Entity Nature of

PaymentAmount

(` in Lakhs)% of equity capital

held by the sponsors & its subsidiary/

associatesMarch

31, 2018March

31, 2017March

31, 2018March

31, 2017PayableHDFC Asset Management Company Ltd.

Investment Management and Advisory Fees 1.36 0.49 95.60*# 99.98*

HDFC Bank Ltd. Custody Charges/Professional Clearing Charges ~ 0.03 0.03 20.93$ 21.20$

Computer Age Management Services Pvt. Ltd.

Registrar and Transfer Agent Fees 0.04 0.05 17.26@# 17.26@#

The above amount represents payables to associates and is netted for the amount borne by the AMC, if any.*# Held by HDFC Ltd. - 57.36%; Standard Life Investments Ltd. - 38.24%* Held by HDFC Ltd. - 59.81%; Standard Life Investments Ltd. - 39.87%** Held by HDFC Ltd.$ Held by HDFC Ltd. (including through HDFC Investments Ltd. and HDFC

Holdings Ltd.)$$ Held by HDFC Bank Ltd.@# Held by HDFC Ltd. (11.09%) , HDFC Bank Ltd. (6.17%)~ Professional Clearing Charges has been included in Custodian fees in the

Abridged Revenue Account and in Other Current Liabilities & Provisions in Abridged Balance Sheet.

@@ Less than 0.01 Lakh@ Less than 0.01%


Current Year

Previous Year

1. NAV per unit (`):OpenGrowth Option 11.8263 10.8579Dividend Option 11.8263 10.8579Quarterly Dividend Option 10.0876 10.0212Direct Plan - Growth Option 11.8980 10.8910Direct Plan - Dividend Option 11.8980 10.8910Direct Plan - Quarterly Dividend Option 10.0880 10.0213HighGrowth Option 12.6332 11.8263Dividend Option 12.6332 11.8263Quarterly Dividend Option 10.2609 10.2921Direct Plan - Growth Option 12.7477 11.8980Direct Plan - Dividend Option 12.7477 11.8980Direct Plan - Quarterly Dividend Option 10.2686 10.2999LowGrowth Option 11.8351 10.8864Dividend Option 11.8351 10.8864Quarterly Dividend Option 10.0015 10.0289Direct Plan - Growth Option 11.9076 10.9200Direct Plan - Dividend Option 11.9076 10.9200Direct Plan - Quarterly Dividend Option 10.0017 10.0290EndGrowth Option 12.6405 11.8263Dividend Option 12.6405 11.8263Quarterly Dividend Option 10.0097 10.0876Direct Plan - Growth Option 12.7554 11.8980Direct Plan - Dividend Option 12.7554 11.8980Direct Plan - Quarterly Dividend Option 10.0104 10.0880

2. Closing Assets Under Management (` in Lakhs)

End 8,369.50 7,817.64Average (AAuM)4 8,094.81 7,511.42

3. Gross income as % of AAuM1 7.77 8.21

4. Expense Ratio5 : a. Total Expense as % of AAuM

(plan wise) Regular Plan 0.31 0.31 Direct Plan 0.01 0.01 b. Management Fee as % of AAuM

(plan wise) Regular Plan 0.09 0.09 Direct Plan 0.09 0.09

Current Year

Previous Year

5. Net Income as a percentage of AAuM2 7.63 8.06

6. Portfolio turnover ratio (%)3 NA NA

7. Total Dividend per unit distributed during the year (`)

Quarterly Dividend OptionIndividual 0.5431 0.5791Corporate 0.5031 0.5364

Direct Plan - Quarterly Dividend OptionIndividual 0.5648 0.6013Corporate 0.5234 0.5571

8. Returns (%) ^ : a. Last One Year Growth Option 6.82** 8.92** Direct Plan - Growth Option 7.14** 9.25** Benchmark # 5.06** 11.09** b. Since Inception Growth Option 8.08** 8.67** Direct Plan - Growth Option 8.40** 9.00** Benchmark # 8.23** 9.81**

** Compounded Annualised Returns# CRISIL Composite Bond Fund Index^ Past performance may or may not be sustained in the futureNA - Not Applicable1. Gross income = amount against (A) in the Revenue account i.e. Income.2. Net income = amount against (C) in the Revenue account i.e. NET REALISED

GAINS/(LOSSES) FOR THE YEAR/PERIOD.3. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM

for the year/period.4. AAuM = Average daily net assets.5. Expense Ratio = Planwise expense divided by Planwise Average AuM for

the year/period.

Auditors’ Report and Abridged Audited Results have been extracted from the Auditors’ Report, Audited Balance Sheet, Revenue Account and Notes to Accounts. Full Annual Report shall be disclosed on the website (www.hdfcfund.com) and shall be available for inspection at the Head Office of HDFC Mutual Fund. Unit holder can obtain a copy of the same at a price.

KEY STATISTICS FOR THE PERIOD APRIL 1, 2017 TO MARCH 31, 2018

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.


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Computer Age Management Services (P) Ltd.Unit : HDFC Mutual Fund“Rayala Towers”, Tower I, 6th Floor,158, Anna Salai, Chennai - 600 002.

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