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

This product is suitable for investors who are seeking*:

• Income over short term.

• to generate income/ capital appreciation by investing in money market instruments

Riskometer

*Investors should consult their financial advisers if in doubt about whether the product is suitable for

them.

^Refer slide 2-4 for run down strategy

1

A portfolio with run down maturity^

Investment Strategy

1. Currently, the fund intends to follow the investment strategy of buying money market instruments

with maturity upto 1 year and adopting a buy and hold (run down) strategy, thereby, allowing the

maturity to reduce over time.

2. This strategy is to be initiated in January-March quarter (rebalancing period), i.e., the portfolio

maturity shall generally be rebalanced in this period every year.

3. The fund may, during the financial year, invest up to 35% of the portfolio in papers maturing

beyond the next rebalancing period (i.e., up to June-July) to take advantage of steepness in the

yield curve, if any.

4. Consequently, scheme returns are expected to be closely aligned to the prevailing YTM,

irrespective of the movement in interest rates over the run down tenor of the strategy.*

The current investment strategy is subject to change as per fund manager’s outlook. Run down strategy is subject to the risks arising on account of

portfolio adjustments made due to inflows/outflows. Further, all debt portfolios are subject to markets risks, interest rate risks and credit risks. For full

details, read Scheme related documents.

*Subject to rebalancing of portfolio as mentioned in point no. 3 above

HDFC Mutual Fund/AMC is not guaranteeing /offering/communicating any returns/indicative yields on investments made in the said Scheme.

2

Jan-March, Year 1(Rebalancing period)

Mat

uri

ty

Jan-March, Year 2(Rebalancing period)

Maturity is rebalanced whenPortfolio Maturity is minimal; resetof maturity will be done with theobjective of optimizing returnsover the target duration

3

Run down Portfolio Strategy – Graphical representation

The current investment strategy is subject to change as per the fund manager’s outlook. Run down strategy is subject to the risks arising on

account of portfolio adjustments made due to inflows/outflows. HDFC Mutual Fund/AMC is not guaranteeing /offering/communicating any

returns/indicative yields on investments made in the said Scheme.

Jan-March, Year 3(Rebalancing period)

Up to 35% of the portfolio may beinvested in papers maturing inJune/July of year 2, i.e., beyondnext rebalancing period. However,these papers may get rebalancedalong with the rest of the portfolioat the next rebalancing period.

June-July, Year 2

How does Run down Portfolio work?

4

ScenarioInvestment

Date

Portfolio Yieldat the time of

Investment

RedemptionDate

Portfolio Yieldat the time of redemption

Portfolio Return ^(Annualised)

Remarks

When investor redeemed during rebalancing period

1 1-Mar-15 7% 1-Mar-16 * ~7% It can be seen that the portfolio return approximately matched the portfolio yield available at the time of investment

2 1-Aug-15 6% 1-Mar-16 * ~6%

3 1-Nov-15 8% 1-Mar-16 * ~8%

When investor redeemed before rebalancing period

4 1-Mar-15 7% 1-Aug-15 6% >~7%As the portfolio yield is lower than that of Mar-15, there would be valuation Gains

5 1-Mar-15 7% 1-Nov-15 8% <~7%As the portfolio yield is higher than that of Mar-15, there would be valuation Losses

Scenario Analysis of Run Down Portfolio Strategy assuming the rebalancing is done on 1st March every year$

Disclaimer: Above illustration is purely to explain the concept of run down portfolio strategy. Run down strategy is subject to the risks arising on account of portfolio adjustments made due to

inflows/outflows. The rate of return/yields shown are assumed figures and should not be construed as actual returns and/or indicative returns. Expenses / charges have not been considered in the

calculations. HDFC Mutual Fund/AMC is not guaranteeing/offering/communicating any returns/indicative yields on investments made in this Fund. The recipient should understand that the

information provided above may not contain all the material aspects relevant for making an investment decision. 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.

The current investment strategy is subject to change as per the fund manager’s outlook.

* Yield at the time of redemption would not be relevant for HTM portfolio. HTM: Held To Maturity

$ The illustration assumes the option of investing up to 35% of the portfolio in papers maturing beyond the next rebalancing period

is not exercised. If the option is exercised, the returns may not be closely aligned with the YTM at the time of investment,

depending on market factors at the time of exercising the option.

Interest rate/reinvestment risk would be lesser when redemption occurs during rebalancing period

Why HDFC Money Market Fund?

Term spreads are reasonable (refer slide 8)

Steep yield curve (refer slide 9)

Relatively low interest rate risk

Yield to Maturity likely to be higher than liquid funds

No lock-in, no entry / exit load

Currently, the fund holds highest rated instruments^

5

^Refer slide no. 11. As on 29th February, 2020.

HDFC Mutual Fund/AMC is not guaranteeing /offering/communicating any returns/ indicative yields 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.

What are Money Market Instruments?

Money Market Instrument Includes:

• Commercial papers

• Commercial bills

• Treasury bills

• Government securities (having an unexpired maturity upto one year)

• Call or notice money

• Certificate of deposit,

• Usance bills and

• Any other like instruments as specified by the RBI / SEBI from time to time.

6

Typically, tenure of money market instruments ranges from 1 day to 1 year

Liquid Funds

Ultra Short Term Funds

Money Market FundsLow

Duration Funds

Short Duration Funds

Medium Duration Funds

Medium to Long Duration Funds

Positioning (Debt Funds)

7

RISK (Maturity)

RET

UR

N

Upto 91 days$ 3 -6 months^ 6-12 months^ Up to 1 year$ 1-3 years^3-4 years^

(1-4 years in adverse

situation)

4-7 years^(1-7 years in adverse

situation)

$ - Maximum maturity of a security

^ - Portfolio Macaulay Duration

Macaulay Duration (Duration) measures the price volatility of fixed income securities. It is often used in the comparison of interest rate risk between

securities with different coupons and different maturities. It is defined as the weighted average time to cash flows of a bond where the weights are nothing

but the present value of the cash flows themselves. It is expressed in years. The duration of a fixed income security is always shorter than its term to

maturity, except in the case of zero coupon securities where they are the same.

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.

Reasonable term spreads

8

Spre

ad (

%)

CD: Certificate of Deposit

Source: Bloomberg (Derivium)

The graph shows daily spreads from February 1, 2017 to February 29, 2020.

Historical performance indicators and financial market scenarios are not reliable indicators of current or future performance. HDFC Mutual Fund/AMC

is not guaranteeing/offering/communicating any returns/ indicative yields on investments made in any scheme. The above should not be construed as

an investment advice or a recommendation by HDFC Mutual Fund/HDFC AMC. The above graph is for general information and illustrative purpose

only.

Spreads between 1 year-CD and Repo

0.00

0.50

1.00

1.50

2.00

2.50

1Y CD - Repo

9

Spre

ad (

%)

CD: Certificate of DepositSource: Bloomberg (Derivium)

The graph shows daily spreads from February 1, 2017 to February 29, 2020.

Historical performance indicators and financial market scenarios are not reliable indicators of current or future performance. HDFC Mutual Fund/AMC

is not guaranteeing/offering/communicating any returns/ indicative yields on investments made in any scheme. The above should not be construed as

an investment advice or a recommendation by HDFC Mutual Fund/HDFC AMC. The above graph is for general information and illustrative purpose

only.

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Fe

b-1

7

Ma

r-1

7

Ap

r-17

Ma

y-1

7

Jun

-17

Jul-

17

Au

g-1

7

Se

p-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan

-18

Fe

b-1

8

Ma

r-1

8

Ap

r-18

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

Se

p-1

8

Oct-

18

Nov-1

8

Dec-1

8

Jan

-19

Fe

b-1

9

Ma

r-1

9

Ap

r-19

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Se

p-1

9

Oct-

19

Nov-1

9

Dec-1

9

Jan

-20

Fe

b-2

0

12m CD - 6m CD 12m CD - 3m CD

Steep Yield Curve

Suitability

HDFC Money Market Fund is suitable for investors:

Seeking returns closer to the prevailing yields*

Who have an investment horizon upto 1 year

Who want to minimize interest rate risk

With a need to park short term surpluses

10

*Run down strategy is subject to the risks arising on account of portfolio adjustments made due to inflows/outflows. The strategy is also

subject to rebalancing of up to 35% of the portfolio, as explained in point 3 of slide 2.

HDFC Mutual Fund/AMC is not guaranteeing/offering/communicating any returns/ indicative yields on investments made in the said Scheme.

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.

Portfolio Characteristics

11

Portfolio Classification by Rating Class (%) *

AAA/AAA(SO)/A1+/A1+(SO) & Equivalent

92.17

Sovereign 1.4

Cash, Cash Equivalents and Net Current Assets

6.43

AUM (In Rs. Cr.) 9,651

Portfolio Classification by Asset Class (%) *

State Development Loans 1.4

Commercial Papers 38.89

Certificate of Deposits 53.28

Cash, Cash Equivalents and Net Current Assets

6.43

For complete portfolio details refer www.hdfcfund.com. Portfolio details provided as on February 29, 2020

* Computed on invested amount.

Type of Scheme An open ended debt scheme investing in money market instruments

Category of Scheme Money Market Fund

Inception Date 18th November, 1999

Investment ObjectiveTo generate income / capital appreciation by investing in money market instruments. There is no

assurance that the investment objective of the Scheme will be realized.

Fund Manager $ Anil Bamboli (since July 25th, 2012)

Investment Plan Regular Plan & Direct Plan

Investment Options

Options under each plan: Growth and Dividend. Dividend Option offers Daily (Reinvestment) and Weekly

(Payout and Reinvestment facility)

Minimum Application Amount.

Purchase: Under Growth Option and Weekly Dividend Option : Rs. 5,000 and any amount thereafter.

Under Daily Dividend Option : Rs. 10,000 and any amount thereafter

Additional Purchase: Under Growth Option and Weekly Dividend Option : Rs. 1,000 and any amount

thereafter. Under Daily Dividend Option : Rs. 5,000 and any amount thereafter

Benchmark Index NIFTY Money Market Index

Fund Facts

12

$ Dedicated Fund Manager for Overseas Investments: Mr Chirag Dagli

For further details, please refer to the Scheme Information Document.

Disclaimer & Risk Factors

This presentation dated March 16, 2020 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 current investment strategies are subject to change depending

on market conditions. 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 may include

statements of future expectations and other forward-looking statements that 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.For

complete portfolio/details refer to our website www.hdfcfund.com

Mutual fund investments are subject to market risks, read all scheme related

documents carefully.

13

Thank You

14