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HDFC Equity Fund(An Open Ended Growth Scheme)
Positioned for earnings recovery
September 2017
RiskometerThis product is suitable for investors who are seeking*:
Capital appreciation over long term
Investment predominantly in equity and equity related instruments of medium to
large sized companies
*Investors should consult their financial advisers if in doubt about whether the product
is suitable for them.
**Past Performance may or may not be sustained in future. For detailed performance
please refer Slide 18 & 20
19.7% CAGR for
22 years**
Wealth has grown 59
times in 22 years**
Changing colour of profit growth
Source: Kotak Institutional Equities
Sharply changing performance across sectors, falling profits / growth in leaders of last cycle and sharp
earnings recovery in underperforming sectors can be witnessed in Q1FY18 results
2
Key Observations on Q1FY18 results
• Capital Goods ,Metals & Mining and Corporate banks reported
highest growth in profits across all sectors in Q1FY18
• Pharmaceuticals, Telecom reported sharp degrowth in profits
in Q1FY18
• FMCG profit growth slowed to 6% in Q1FY18 from 10% in
Q1FY17
• Auto sector de-growth is driven by fall in profits of Tata Motors
due to currency hedges and is not indicative of the sector
profits
• Oil & Gas results in Q1FY18 got impacted by inventory losses
and are not indicative of trend
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above stocks/sectors. The Fund may or may not have any present or future positions in the stocks/Sector/s. Sector classification in internal. Others includes Infra, Telecom and Media
Net profit growth of the Nifty-50 Index across sectors
Sector Q1FY17 Q1FY18
Autos -25 -25
Corporate Banks & Financials -47 20
Retail Banks & Financials 33 13
Cement 47 14
FMCG 10 6
Oil & Gas, Petchem 13 -30
Capital Goods 46 46
Metals & Mining -12 35
Pharmaceuticals 13 -56
Technology 9 -1
Utilities 17 12
Others 13 -17
New sectoral leadership emerging ?
Key Observations
March 12 - March 16
• Sectors with highest profits growth
Healthcare, Retail Banks, Technology
• Sectors with lowest profitability growth
Corporate Banks, Metals & Mining, Capital Goods
March 16 - March 19(E)
• Sectors with highest profits growth estimates
Corporate Banks, Metals & Mining, Capital
Goods
• Sectors with lowest profitability growth estimates
Healthcare, Technology, Utilities, FMCG Source: CLSA, based on CLSA coverage universe, E- CLSA estimates
Profits drive Stock prices
PAT CAGR %
(March 12 to March 16)
PAT CAGR %
(March 16 to March 19E)
Autos 6.9 12.8
Capital goods -22 36.2
FMCG 11.7 11.8
Cement -2.0 21.5
Corporate Banks & Financials -15.8 36.4
Retail Banks & Financials 20.5 19.2
Healthcare 20.1 4.9
Metals & Mining -12.5 39.2
Oil & Gas, Petchem 4.2 12.5
Utilities 11.6 9.6
Technology 18.1 6.5
Others 21.0 -6.4
3
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not guaranteeing
returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above sectors.
The Fund may or may not have any present or future positions in the Sector/s. Sector classification in internal, Healthcare includes hospitals, labs etc., Others include Infra,
Telecom, Media, Real Estate, Restaurants and Jewellery retail
What’s driving the change in fortunes across sectors ?
In the long term, equities are slaves of corporate earnings
2012 - 2016 2016 - 2019
Pharma
• Healthy product launches in US, stable pricing
• INR depreciation
• Healthy profit growth
• Price erosion led by faster approvals by US FDA
• INR appreciation
• Higher R&D cost
• Profitability likely to be under pressure
FMCG• Healthy volume growth and pricing growth
• Soft input prices from 2015
• Weak volume growth
• Subdued pricing growth due to low inflation
• Lower inputs price already in base
Metals
• Low prices in China and rest of World
• Low demand growth & large imports in India
• Falling profitability
• Higher prices led by MIP in steel and higher global prices across
metals
• Infra / Housing demand to improve volume growth
• Sharp improvement in profitability expected
Corporate
Banks &
Financials
• Significant increase in stress in steel, power & infra sectors
• Higher provisioning on NPAs impacted profitability sharply
• Lower slippages and resolution of stressed assets likely
• Provisioning costs expected to fall steadily over next 2-3 years
• Earnings likely to improve
Capital
Goods
• Weak capex in economy
• Stretched working capital cycle and high interest rates
• Low profitability
• Improving outlook for capex
• Reducing working capital cycle
• Improvement in profitability likely
4Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not
guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above sectors. The Fund may or may not have any present or future positions in the Sector/s.
HDFC Equity Fund – Right place, Right time
HDFC Equity Fund’s portfolio is well aligned to the current environment
• Corporate Banks, Capex / Industrials, Metals etc. are expected to have faster profit growth over next few years
• FMCG, Pharma etc. are expected to have slower growth
Source: HDFC AMC, For latest scheme portfolio visit our website www.hdfcfund.com
5
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is
not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above sectors. The Fund may or may not have any present or future positions in the Sector/s.
Key changes in the environment
• Metal prices up sharply –
• Substantial progress in NPA resolution expected by Mar 18
• INR has an appreciating bias
% Movement 1year to Aug 17
Steel 50
Zinc 36
Aluminium 31
Lead 26
HDFC Equity Fund – Ideal for SIP Investments
Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualised (CAGR). For detailed performance refer slide
no. 18 & 20 and slide 19 for detailed SIP returns. HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. In view of the individual
circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme.
Track Record 22 years
Outperformance vs. Benchmark 19 out of 22 years
Alpha generation~9.7% CAGR
(19.7% scheme CAGR vs 10.0% benchmark CAGR)
Wealth creation 59 times vs 9 times in benchmark
SIP of Rs 10,000 since inception has become Rs 6.39 crores at a CAGR of 23.06%
Dividends21 Dividends in 18 years since 1999,
Average yield ~10.7%
Annual Portfolio Turnover Ratio 26.43% as on August 2017
Weighted average portfolio Market capitalization
~Rs 1,58,000 crores (Source: Bloomberg)
Large cap exposure 76%
Top 20 stocks 73% (Focused portfolio)
Other Attributes Part of HDFC Group, stable Fund management team at HDFC AMC
6
For dividend history refer slide 9. There is no assurance or guarantee to Unit holders as to rate/quantum of dividend distribution nor that the dividends will be paid regularly.
All dividends are on face value of Rs. 10 per Unit. After payment of the dividend, the per Unit NAV falls to the extent of the pay-out and statutory levy, if any. Please log on
to www.hdfcfund.com for Record Date-wise listing of dividends declared.
HDFC Equity Fund – Correct positioning in each of 3 different cycle over 22 years
1995- 2000 : IT lead the market, Infosys/ Wipro up 96 times, old economy stocks out of flavor; L&T down 20% !
HDFC Equity Fund stance – The Fund was an early investor in IT, NAV up 1.9 times vs. 0.9 times of benchmark
•Outperformance vis-a-vis benchmark. Past Performance may or may not be sustained in the future. In view of the individual circumstances and risk profile, each
investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Historical performance indications and financial market
scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme
and/or should not be construed as an advice for investing in the above stocks/sectors. The Fund may or may not have any present or future positions in the
Stocks/Sectors. For detailed performance please refer Slide 18 & 20.
2001- 2007 : Capex / Banking / Commodities lead the market, BHEL up 32 times. L&T up 28 times; HUL flat over this cycle !
HDFC Equity Fund stance – The Fund was overweight in old economy stocks, NAV up 11.8 times vs. 5.9 times of benchmark
2008- 2015 : Pharma / FMCG stocks lead the market. HUL, ITC up 4 times, Lupin up 12 times; Tata Steel, Reliance etc. down !
HDFC Equity Fund stance – The Fund was an early investor in Pharma / FMCG, NAV up 2 times vs. 1.3 times of benchmark
Different cycles, changing leadership, consistent outperformance
7
Cycle 1 CY 1995 - 2000 Cycle 2 CY 2000 - 2007 Cycle 3 CY 2008 - 2015
CY 2016 - till
Aug 17
Total 1995 - Aug 17
(22 years)Leading sectors IT stocks Leading sectors
Auto / Capex /
Banking /
Commodities
Leading sectors
Auto /
Pharma /
FMCG
(x) times (x) times (x) times (x) times (x) times
NIFTY 500 0.9 NIFTY 500 5.9 NIFTY 500 1.3 1.3 8.7
HDFC Equity Fund 1.9 HDFC Equity Fund 11.8 HDFC Equity Fund 2.0 1.3 58.8
HDFC Equity Fund – Adding value in each cycle
Rs 10,000 invested in HDFC
Equity Fund at inception has
grown to ~Rs 5.9 lacs at a
CAGR 19.7%
Rs 10,000 invested in NIFTY
500 at the same time would
have grown to ~Rs 0.87 lacs
at a CAGR 10.0%
Usage of logarithmic scale :
When using a logarithmic scale,
the vertical distance between
the values in the scale is equal
when the percent change
between the values is the same.
Log scale charts reflect
movement on percent basis and
not on absolute basis as shown
in a linear chart.
Disclaimer:
Past Performance may or may not be sustained in the future. Returns as on 31st August 17. For detailed performance please refer Slide 18 & 20. The above returns are of regular plan - growth
option. HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult
his / her professional advisor before making a decision to invest in the Scheme. Historical performance indications and financial market scenarios are not the reliable indicator for current orfuture performance. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the abovestocks/sectors. The Fund may or may not have any present or future positions in the Stocks/Sectors. .
8
A track record of consistent dividends
“It's not what we do once in a while that shapes our lives. It's what we do consistently.”
― Anthony Robbins
Good years, bad years, 21 Dividends in 18 years since 1999
All dividends are on face value of Rs 10 per unit. After payment of the dividend, the per Unit NAV falls to the extent of the payout and statutory levy (if applicable). There is
no assurance or guarantee to Unit holders as to rate/quantum of dividend distribution or that the dividends will be paid regularly.
NAV of the Regular Plan - Dividend Option Dividend was declared twice in year 2000 (March and December), 2003 (July and September) and 2004 (March and November)9
For complete dividend history details visit www.hdfcfund.com
CY (Since 1999) 2010 2011 2012 2013 2014 2015 2016 2017
Dividend Per Unit (Rs) (A) 4.0 4.0 4.0 4.0 4.0 5.5 4.5 5.0
NAV (Record Date) (B) 46.9 49.0 44.0 41.4 43.8 59.8 41.9 54.9
Dividend Yield (%) (A/B) 8.5 8.2 9.1 9.7 9.1 9.2 10.7 9.1
CY (Since 1999) 1999 1999 2000 2000 2002 2003 2003 2004 2004 2006 2007 2008 2009
Dividend Per Unit (Rs) (A) 1.6 2.0 3.0 1.7 1.2 2.0 2.5 1.5 3.0 5.0 5.0 5.5 3.0
NAV (Record Date) (B) 16.0 19.1 21.5 12.7 13.5 17.1 18.8 20.8 23.1 41.9 40.4 45.4 23.3
Dividend Yield (%) (A/B) 10.0 10.5 14.0 13.4 8.9 11.7 13.3 7.2 13.0 11.9 12.4 12.1 12.9
• Preference for strong & growing companies - Strong companies not only survive, but emerge
stronger in challenging times, reducing permanent losses
• A predominantly large cap portfolio with dynamic allocation to mid caps
• Effective diversification of portfolio – The portfolio always remains diversified across key sectors and
economic variables to reduce risk
• Low portfolio turnover – a result of the Fund’s long term approach to investing
The current investment strategy is subject to change without prior notification. For latest scheme portfolio visit our website www.hdfcfund.com
Investment Philosophy of HDFC Equity Fund
Portfolio Turnover (%)
FY11 FY12 FY13 FY14 FY15 FY16 FY17
44 29 32 37 39 37 23
Steadfast adherence to few principles has worked well for HDFC Equity Fund over medium to long periods
* Past Performance may or may not be sustained in the future. For detailed performance please refer Slide 18 & 20. HDFC Mutual Fund/AMC is not guaranteeing any
returns on investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before
making a decision to invest in the Scheme.
10
• Focus on value : The Fund avoids excessively valued sectors, HDFC Equity Fund has successfully
navigated IT and Power / Infra etc. meltdowns in the past
• Consistent Focus on quality : HDFC Equity Fund has sailed through bubbles in Real estate sector, TMT
(Tech-Media-Telecom), Infra etc.
• Controlled exposure to midcaps : Depending on attractiveness (currently HDFC Equity Fund has only
~24% exposure to midcaps)
• Diversified yet focussed approach to investing : HDFC Equity Fund while maintaining effective
diversification maintains a focussed portfolio. Top 20 stocks comprise 74% of Fund currently. This aids higher
alpha generation over the medium to long term
The current investment strategy is subject to change without prior notification. For latest scheme portfolio visit our website www.hdfcfund.com
Investment discipline – The key to success over cycles of HDFC Equity Fund
* Past Performance may or may not be sustained in the future. For detailed performance please refer Slide 18 & 20. HDFC Mutual Fund/AMC is not guaranteeing any returns on
investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision
to invest in the Scheme.
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. The Fund may or may not have any present
or future positions in the Stocks/Sectors.
% of AUM Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Aug 17
Top 20 Holdings 67 65 65 76 76 77 75 73
11
Indian Economy : Improving outlook
FY13 FY14 FY15 FY16 FY17 FY18E
GDP at market price (%YoY) 5.5 6.4 7.5 8.0 7.1 6.7
Centre's fiscal deficit (% GDP) 4.9 4.5 4.1 3.9 3.5 3.2
Current Account Deficit (CAD) (% GDP) 4.7 1.7 1.3 1.1 0.7 1.2
Net FDI (% of GDP) 1.1 1.2 1.5 1.7 1.6 1.6*
Consumer Price Inflation (CPI) (Avg) 10.2 9.5 6.0 4.9 4.5 3.2
India 10 year Gsec Yield (at yearend) 8.0 8.8 7.7 7.5 6.6- Aug 31 Na
Source: CEIC, CSO, RBI, Morgan Stanley Research ; Economic Survey, E-Estimates, * HDFC AMC estimates
• FY17 and FY18 growth has been adversely impacted due to
demonetisation and GST reforms
• Economy should experience steadily increasing growth rates in FY19 and
FY20
• This should be led by improving capex
• Industrial capex is likely to improve in a year
• Steel, Fertilizer, Refineries, Auto etc.
12Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not
guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above sectors. The Fund may or may not have
any present or future positions in the Sector/s.
Source: Kotak Institutional Equities, E- Kotak Institutional Equities estimates
Good progress in Non Performing Assets (NPA) resolution
• Banking system’s Gross NPA’s on Mar 17 stood at ~10% of advances (excl. foreign banks) with provision coverage of 44%
• Banks have referred 12 large NPA’s to NCLT for resolution under Insolvency & Bankruptcy code (IBC). These NPA
constitutes ~32% of the system gross NPA
• RBI has directed banks to resolve another 30-40 large NPA in a time bound manner, using all the restructuring options
which are available to banks, else, referred the same to NCLT under IBC for resolution
• IBC stipulates resolution in a time bound manner of 180 days (can be extended by additional 90 days)
Gross NPAs and provision costs expected to decline meaningfully in FY19 and FY20
Corporate banks should witness steady increase in RoA / RoE in FY19 & FY20
13Source: RBI
Equity Markets – Marketcap to GDP near lows
• S&P BSE SENSEX EBITDA margins are stable / improving
• Improving EBITDA margins, lower interest rates should lead to improved EPS / Profit growth in coming years
Source : BofAML, Note – EBITDA margins calculated above are excluding financial stocks/companies in S&P BSE SENSEX
S&P BSE SENSEX 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18
EBITDA Margin (%) 17.4 17.0 17.0 16.8 18.2 18.0 18.3 18.7 18.3 18.1 17.8 19.1 17.9
14
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not
guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above sectors.
The Fund may or may not have any present or future positions in the Sector/s.
Equity Markets Outlook
• Forward P/E is a better parameter to evaluate markets compared to trailing P/E, especially when earnings are recovering
• Earnings outlook is improving with improvement in operating margins, lower interest rates, peaking NPA’s and higher metal prices
• In few months, markets will focus on FY19.
Markets are trading at FY19(e) p/e of ~17x and FY20(e) p/e of ~15x, which is reasonable, especially given the low interest rates
• Any volatility in the short term driven by bunching of new issuances in September / October or by international events should be
used to their advantage by long term investors
PE for FY17 FY18E FY19E FY20E
as on Aug 31 23.3 20.6 16.5 14.5
(Bloomberg consensus)
15
Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not guaranteeing
any returns on investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme.
S&P BSE SENSEX valuations
16
"I think the potential for India is incredible“
Warren Buffett, CEO, Berkshire Hathaway
“We’re really happy with how that’s going”. “And so we’re
bringing all of our energies to bear there...And so I’m very,
very bullish and very, very optimistic about India
Tim Cook, CEO, Apple Inc.
"India is pushing towards digitisation in a big way. The scale
of the country means that once India gets there, the amount of
digital innovation here will be greater than anywhere else in
the world“ Bill Gates, Founder, Microsoft
How are global CEOs looking at India
"I find India on the progressive side. I think they approach it
the right way. The emphasis is on encouraging innovation,
building infrastructure and taking it to as many people as
possible. Sundar Pichai, CEO Google
“India has the best opportunity" given the democratic form of
governance, huge population base and rapid pace of adoption
of new technologies.Masayoshi Son, Chairman & CEO, Softbank
"India is creating an environment that is congenial for its
entrepreneurs to do business"
Jeff Immelt, Outgoing CEO, General Electric
Source: Publicly available information
In Summary
HDFC Equity Fund has delivered CAGR of 19.7% vs 10.0% CAGR of benchmark across three market cycles in 22 years
.NAV of the Fund is up 59 times vs 9 times in benchmark between 1995-2017 YTD
The Fund is now well positioned for improving economic outlook and changing outlook of sectoral profits (refer slides 4, 5)
• Healthy pace of reforms continues, outlook for Indian economy improving steadily
• Domestic institutional flows continue to be strong
• Improving EBITDA margins, lower interest rates should lead to improved EPS / profit growth of more than 15% in coming years
• Sectoral outlook of profit growth is changing rapidly (refer slide 2, 3, 4)
• Markets are trading at low Marketcap to GDP and at reasonable P/Es (refer slide 14)
• Any volatility in the short term driven by bunching of new issuances in September / October or by international events should be
used to their advantage by long term investors
* Past Performance may or may not be sustained in the future. For detailed performance please refer Slide 18 & 20. HDFC Mutual Fund/AMC is not guaranteeing
any returns on investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional
advisor before making a decision to invest in the Scheme. 17
Scheme Performance Summary
1818
Scheme Returns
(%)$$
Benchmark
Returns (%) #
Additional
Benchmark
Returns (%) ##
Scheme $$ Benchmark Additional
Benchmark
Last 1 year 17.89 16.08 12.88 11,789 11,608 11,288
Last 3 years 10.33 10.94 7.60 13,446 13,670 12,469
Last 5 years 18.88 16.05 13.52 23,752 21,054 18,861
Since inception 19.68 10.01 NA 588,317 86,950 NA
Value of Rs 10,000 invested
Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized (CAGR). Load is not
taken into consideration for computation of performance. # NIFTY 500 ## NIFTY 50. $$ All dividends declared prior to the splitting of the Scheme into
Dividend & Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-dividend NAV). Different plans
viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of
the distribution expenses / commission charged in the Regular Plan. Returns as on 31st August 2017. Inception date of the scheme is 1st Jan 1995
SIP Returns – HDFC Equity Fund
19
Past performance may or may not be sustained in the future. # Nifty 500 Index ## NIFTY 50 Index. Assuming Rs. 10,000 invested systematically on the first BusinessDay of every month over a period of time. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return)for Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. The above investment simulation is for illustrative purposesonly and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecastingany returns. Inception date of the scheme is 1st January 1995 19
SIP Investments Since Inception 20 year SIP 15 year SIP 10 year SIP 5 year SIP 3 year SIP
Total Amount Invested (Rs.) 2,720,000 2,400,000 1,800,000 1,200,000 600,000 360,000
Market Value as on August 31, 2017 (Rs.)
63,866,411 37,194,550 9,471,444 2,718,376 925,595 445,500
Returns Annualised)*(%) 23.06% 23.21% 19.89% 15.61% 17.37% 14.34%
Market Value of SIP in Benchmark# (Rs).
16,425,866 12,528,247 5,759,048 2,258,648 879,335 442,876
Benchmark Returns (Annualised)(%)#
13.74% 14.53% 14.21% 12.15% 15.28% 13.93%
Market Value of SIP in Additional Benchmark# # (Rs).
13,727,728 10,571,606 5,268,231 2,078,638 814,230 424,278
Additional Benchmark Returns (Annualised)(%)# #
12.48% 13.14% 13.18% 10.59% 12.16% 10.96%
A SIP of Rs. 10,000 in HDFC Equity Fund since inception has grown to Rs 6.39 Cr
Scheme Performance Summary
2020
Performance of other schemes managed by Prashant Jain
3 year 5 year
CAGR (in %) CAGR (in %)
HDFC Top 200 19-Jun-03 16.95 10.08 17.37
S&P BSE 200 Index 15.02 10.22 15.32
HDFC Prudence Fund 19-Jun-03 16.78 11.61 18.42
CRISIL Balanced Fund –
Aggressive Index11.78 9.02 12.38
HDFC MF Monthly Income
Plan - LTP# 26-Dec-0310.33 10.68 11.96
CRISIL MIP Blended Index 9.93 10.63 10.30
Prashant Jain manages 4 schemes
Past performance may or may not be sustained in the future. Returns greater than 1 year period are
compounded annualised (CAGR). The above returns are of Regular plan -growth option. #The Scheme is co -
managed by Prashant Jain(Equities) and Shobhit Mehrotra (Debt). Load is not taken into consideration for
computation of performance. On account of difference in the type of the Scheme, asset allocation,
investment strategy, inception dates, the performance of these schemes is strictly not comparable. Returns
as on 31st August 2017
Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the
Direct Plan under the Scheme will be lower to the extent of the distribution expenses/ commission charged
in the Regular Plan
Scheme
Tenure for
managing the
scheme
Cumulative Performance
1 year
Type of Scheme Open-ended Growth Scheme
Inception Date
(Date of allotment)January 1, 1995
Investment Objective To achieve capital appreciation
Fund Manager $ Prashant Jain
Plans Direct Plan, Regular Plan
Options Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.
Minimum Application Amount Purchase: Rs 5000 and any amount thereafter
Additional Purchase: Rs1,000 and any amount thereafter
Load Structure
Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI
registered Distributor) based on the investors’ assessment of various factors including the servicerendered by the ARN Holder.
Exit Load:
In respect of each purchase / switch – in of units, an exit load of 1.00% is payable if units areredeemed / switched – out within 1 year from the date of allotment.
No exit load is payable if units are redeemed / switched out after 1 year from the date of allotmentIncase of Systematic Transactions such as SIP, GSIP, STP, Flex STP, Swing STP, Flexindex; Exit Load, if any,prevailing on the date of registration / enrolment shall be levied.
For further details on load structure, please refer to the Scheme Information Document / Key Information
Memorandum of the Scheme.
Benchmark Nifty 500 Index
$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas.
Scheme Facts
21
Asset Allocation Pattern
*Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the Scheme.
The scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 40% of net assets) subject to SEBI (Mutual Funds)
Regulations, 1996. The scheme may use derivatives mainly for the purpose of hedging and portfolio balancing (max 25% of net assets) based on the
opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.
Under normal circumstances, the asset allocation of the scheme’s portfolio will be as follows
Types of Instruments Normal Allocation
(% of Net Assets)
Risk Profile
Equities & Equity related instruments 80 - 100 Medium to High
Debt and money market instruments* 0 – 20 Low to medium
2722
Disclaimer
The presentation is dated 27th Sep 2017 and has been prepared by HDFC Asset Management
Company Limited (HDFC AMC) based on internal data, publicly available information and other
sources believed to be reliable. Any calculations made are approximations, meant as guidelines
only, which you must confirm before relying on them. The information contained in this document
is for general purposes only. The document is given in summary form and does not purport to be
complete. The document does not have regard to specific investment objectives, financial
situation and the particular needs of any specific person who may receive this document. The
information/ data herein alone are not sufficient and should not be used for the development or
implementation of an investment strategy. The statements contained herein are based on our
current views and involve known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those expressed or implied in such
statements. Past performance may or may not be sustained in future. Neither HDFC AMC and
HDFC Mutual Fund nor any person connected with them, accepts any liability arising from the
use of this document. The recipient(s) before acting on any information herein should make
his/her/their own investigation and seek appropriate professional advice and shall alone be fully
responsible / liable for any decision taken on the basis of information contained herein.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME
RELATED DOCUMENTS CAREFULLY.
2323
Thank You