hdfc net asset allocator booklet
TRANSCRIPT
1Refer disclaimers on page 29.
���������������������������HDFC Asset Allocator Fund of Funds
Contact your Mutual Fund Distributor or Registered Investment Adviser today,or give a missed call on 7397412345.
• Investment predominantly in equity oriented, debt oriented and Gold ETF schemes.
• Capital appreciation over long term
*Investors should consult their financial advisers, if in doubt about whether the product is suitable for them.
# The product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. For latest Riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com
HDFC Asset Allocator Fund of Funds (An open ended Fund of Funds scheme investing in equity oriented, debt oriented and gold ETFs schemes) is suitable for investors who are seeking*
Riskometer #
�������������NFO Period :
April 16,2021 to
April 30,2021NFO Period :
April 16,2021 to
April 30,2021
Why Asset Allocation ?
On an average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by Asset Allocation
- Roger Ibbotson
2
Refer disclaimers on page 29.
3
Source:- MFI, Data from 1st April 1998 to 31st March 2021.
NIFTY 50 - Wealth Creation Journey
0
2000
4000
6000
8000
10000
12000
14000
16000
Apr-
98M
ar-9
9Fe
b-00
Jan-
01De
c-01
Nov
-02
Oct
-03
Sep-
04Au
g-05
Jul-0
6Ju
n-07
May
-08
Apr-
09M
ar-1
0Fe
b-11
Jan-
12De
c-12
Nov
-13
Oct
-14
Sep-
15Au
g-16
Jul-1
7Ju
n-18
May
-19
Apr-
20M
ar-2
1
CAGR Returns ~ 12%
Equity : Offers Returns with Volatility
Refer disclaimers on page 29.
Equities create Long Term Wealth but the journey is volatile
Asset Class winners change over time
Source:- Bloomberg, World Gold Council, Data from 1st April 1998 to 31st March 2021. *Upto 14th January 2020. All returns are CAGR %, unless specified otherwise. $ Absolute Returns used asperiod less than a year. COVID-19 Correction considered from 14th January 2020 to 23rd March 2020 as market bottomed that day & Post Correction Rally from 23rd March 2020 to 31st March 2021. Classification of periods as per internal HDFC AMC classification. Data used for asset classes: Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 GramsThe Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes.
4
Market Events
Refer disclaimers on page 29.
14%
-14%
37%
7% 8%11%
-38%
93%
16% 20%
5% 5%8% 5% 3% 5%
0%
10%
19% 20%
4%
11%7% 6%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equity Debt Gold
FY 98-00(Tech Bubble)
FY 00-03(Tech bubblemeltdown)
FY 03-08(Economic
Boom)
FY 08-11 (Sub-Prime Crisis/Eurozone crisis)
FY 11-17(Post Crisis)
FY 17-20*(Market
Recovery)
COVID-19Correction$
Post-CorrectionRally $
Ret
urns
%
5
Even within Equities –Different Market Caps perform at different times
Out of 16 Fiscal years since FY06, Small cap has been the best performing category in7 0ut of 16 instances. Large cap and Mid cap have been the best performing asset classes in 6 and 3 years respectively.
Source: MFI 1st April 2005 to 31st March 2021. Data used for asset classes: Large Cap – NIFTY 100 TRI, Mid Cap - NIFTY 150 TRI , Small Cap – NIFTY Small Cap 250 TRI
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
Period Large Cap Mid Cap Small Cap
65.1%
13.5%
23.9%
-36.6%
84.9%
11.4%
-7.8%
8.8%
19.9%
30.8%
-6.9%
22.6%
12.2%
14.0%
-24.9%
71.2%
74.8%
-1.1%
21.5%
-48.5%
135.8%
4.7%
-4.6%
4.5%
18.0%
59.7%
-1.7%
37.2%
16.7%
-0.6%
-30.1%
101.6%
78.7%
11.8%
31.3%
-54.9%
141.4%
0.9%
-8.6%
-5.3%
22.9%
62.8%
-5.9%
40.6%
12.9%
-12.4%
-40.2%
118.7%
6
3
7
Large Cap
Mid Cap
Small Cap
3
10
3
7
3
6
Rank 1 Rank 2 Rank 3
Refer disclaimers on page 29.
6
Equity returns are relatively more volatile vis-à-vis debt and gold.
Small Cap
Equity Gold Debt
Risk (Annualized Standard Deviation %)
20.2
14.7
0
5
10
15
20
25
4.9
Source:- Bloomberg. World Gold Council Data for last 23 fiscal years. 1st April 1998 to March 31, 2021. Data used for asset classes: Equity -NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Standard Deviation % of Daily returns considered. The Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes
Different Asset Classes have different risk profile
Refer disclaimers on page 29.
Hence….. Asset Allocation
Asset Allocation may lead to better risk- adjusted returns
- Michael LeBoeuf
The most important key to successful investing can be summed up in just two words – Asset Allocation
7
Refer disclaimers on page 29.
Asset Allocation and its Benefits
Each asset class behaves differently across different economic cyclesIt reduces dependency on a single asset class to generate returns.Mitigates volatility of portfolio returns
Determine financial goalsAscertain risk appetite Determine optimal asset allocationInvest in different asset classes directly and rebalance portfolio periodically
Asset Allocation refers to distributing your investible surplus across various asset classes according to risk tolerance, risk appetite and investment time frame.
01
Why Asset allocation is crucial?
How can investors implement asset allocation?
8
Refer disclaimers on page 29.
Invest in an Asset Allocation mutual fund
or
The difference between success and failure is not which stock you buy or which piece of real estate you buy, its asset allocation- Tony Robbins
Correlation and diversification
Source:- Bloomberg. Data for last 23 fiscal years. April 1998 to March 2021Data used for asset classes: Equity-NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams)The Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes.
Combining assets with low correlation, could help investors in reducing risk and may offer benefits of optimal returns.
Since April 1998Asset correlation is a measure of how asset classes move in relation to one another over a period of time. Correlation coefficient can range from -1 to +1. When assets move in the same direction at the same time, they are considered to be positively correlated. When one asset tends to move up and when the another goes down, the two assets are considered to be negatively correlated.
Daily 1 year rolling returns since April 1998 exhibit negative correlation between Equity, Debt and Gold.
Low/negative correlation between these asset classes creates a strong case for diversification and thereby reduce risk in the portfolio.
1
-0.25
-0.05
Equity
Debt
Gold
-0.25
1
-0.09
-0.05
-0.09
1
Equity GoldDebt
9
Refer disclaimers on page 29.
Asset Class winners change over timePower of Asset Allocation
FPI Flows Rs crsLets consider the CAGR growth of an investment from 1st April 1998 to 31st March 2021, along with the volatility of returns over that period
Gold and Equity performed better than Debt in terms of returns while debt had the lowest volatility.
Source:- Bloomberg. Data for last 23 fiscal years. April 1998 to March 2021. Returns are CAGR. Data used for asset classes: Equity - NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Monthly portfolio rebalancing assumed. Standard Deviation % of Daily returns considered. The above analysis is based on backtesting of the above mentioned asset classes. HDFC Mutual Fund/AMC is not guaranteeing future returns of these asset classes. The Scheme proposes to invests in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purpose. The above combinations are for illustrative purpose. Investors are requested to take professional advise while making investment decisions.
Outcome of the investment over ~2 decades?
Individual Asset Classes
11.61%
8.61%10.71%
20.2%
4.9%
14.7%
0%
5%
10%
15%
20%
25%
Equity Debt Gold
CAGR Returns % Volatility %
Yes, a combination of Equity, Debt and Gold (60%,30%,10% respectively) would have yielded returns slightly lower than equity returns but with much lower volatility , thereby underlining the importance of asset class diversification.
10
Refer disclaimers on page 29.
Asset AllocationCAGR Returns % Volatility %
10.9% 11.5%11.9%
8.7%
12.3%
16.2%
0%
5%
10%
15%
20%
25%
40E+50D+10G 60E+30D+10G 80E+10D+10G
However, could you have got a better deal for your investments?
How the numbers stack up?
Asset Allocation by Investors not alwaysdetermined by valuations
MF Industry Equity Sales based on AMFI Returns Based on NIFTY 50 Index. Returns are CAGR as return period shown are more than 1 year. Data as on February 26, 2021
Investments made without considering valuation may lead to suboptimal future returns.
FinancialYear
Net Investments into Equity MFs
12 M Trailing PE
Next 2 Years Returns
17.96%-11.09%5.29%38.96%0.44%-1.30%12.52%22.24%7.44%3.94%14.32%12.56%-7.80%11.91%
FY: 05-06FY: 06-07FY: 07-08FY: 08-09FY: 09-10FY: 10-11FY: 11-12FY: 12-13FY: 13-14FY: 14-15FY: 15-16FY: 16-17FY: 17-18FY: 18-19FY: 19-20FY: 20-21*
50,88028,71649,3604,0841,181(11,795)504(14,371)(11,254)80,79385,08693,502240,311118,72367,035(75,088)
20.2618.4020.6314.2922.3322.1418.7117.5718.8622.7020.8923.2624.6629.0119.3840.10
FinancialYear
Net Investments into Equity MFs
12 M Trailing PE
Next 2 Years Returns
17.96%-11.09%5.29%38.96%0.44%-1.30%12.52%22.24%7.44%3.94%14.32%12.56%-7.80%12.42%
FY: 05-06FY: 06-07FY: 07-08FY: 08-09FY: 09-10FY: 10-11FY: 11-12FY: 12-13FY: 13-14FY: 14-15FY: 15-16FY: 16-17FY: 17-18FY: 18-19FY: 19-20FY: 20-21*
50,88028,71649,3604,0841,181(11,795)504(14,371)(11,254)80,79385,08693,502240,311118,72367,035(75,088)
20.2618.4020.6314.2922.3322.1418.7117.5718.8622.7020.8923.2624.6629.0119.3840.10
FinancialYear
Net Investmentsinto Equity MFs
12 M Trailing PE
Next 2 YearsReturns
ValuationRange
PE<20
PE>20
7,679
708,041
14.01%
6.43%
Cumulative Net Investmentsinto Equity MFs
Average Next 2 years returns
11
Refer disclaimers on page 29.
*
So what is the solution ?
Systematic & Process Driven Asset Allocation
Equity, Debt or Gold ?
Large cap, Mid Cap or Small Cap ?
Frequency of Rebalancing ?
Whether Asset Allocationis Tax Efficient ?
Simple solution to all these investment questions
12
Refer disclaimers on page 29.
Presenting
HDFC Asset AllocatorFund of FundsA Systematic & Process driven approach to Asset Allocation
13
HDFC Asset Allocator Fund of Funds - Asset Allocation
Equity Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. Debt Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. HDFC Gold ETF and/or other schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. For complete details, please refer to Scheme Information Document
Units of DomesticMutual Funds
Schemes
95%-100%
Equity Oriented Schemes* (40-80%)
Gold ETF Schemes*** (10-30%)
Debt Oriented Schemes** (10-50%)
14
Refer disclaimers on page 29.
* *****
Equity Allocation: Model driven asset allocation
HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. TTM- Trailing 12 Months, PE – Price/ Earnings, PB – Price/ Book Value, Earnings Yield = Trailing 12 M Earnings per share/ Market price per share, G Sec Yield = 10 Yr G Sec. Depending on the market and other conditions, the asset allocation may or may not be based on the model.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
Dec-05
Aug-06
May-07
Feb-08
Oct-08
Jul-09
Apr-10
Jan-11
Sep-11
Jun-12
Mar-13
Dec-13
Aug-14
May-15
Feb-16
Nov-16
Jul-17
Apr-18
Jan-19
Oct-19
Jun-20
Mar-21
NIF
TY 5
0 Le
vels
% o
f Net
Ass
ets
Alloca�on to Equity (% of Net Assets) (LHS) NIFTY 50 (RHS)
Factors considered by the model include 1) TTM PE, 2) 1 Year Forward PE, 3)TTM PB 4) Earnings Yield/ G-Sec Yield
Model will indicate the % of equity allocation on the basis of back testing results
Portfolio will be rebalanced on a monthly basis
15
Historical Asset Allocation range indicated by the model
Post GFC trough
Pre GFC peak
COVID led correc�on
Refer disclaimers on page 29.
Equity Allocation % indicated by model during key market events
GFC – Global Financial Crisis Period upto 31 March, 2021. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. The above data is just to indicate the key market events and resultantly higher and lower end of the equity allocation indicated by the model. For illustrative purposes only.
Based on valuations, the financial model indicated an reasonably optimal equity allocation during key events as under:
Pre GFC peak
Post GFC trough
Post GFC recovery
Eurozone Debt Crisis
Mid and Small Cap Rally
COVID-19 led correction
Nov’07
Oct’08
Oct’09
Sep’11
Sep’18
Apr’20
5763
2886
4712
4943
10930
9860
47%
80%
46%
80%
46%
78%
-52%
63%
28%
15%
5%
49%*
Events Month endNIFTY 50
Level Equity
Allocation % Next 1 Year
NIFTY Returns
16
Refer disclaimers on page 29.
*
Debt Allocation Strategy
17
Refer disclaimers on page 29.
Debt portfolio aims to play the role of reducing volatility while generating reasonable returns
Background:
To invest, predominantly, in schemes with exposure, mostly, to issuers with high credit quality
Controlled interest rate risk
Generally debt portfolio duration would be in the range of 1 - 3 years
However, in case the interest rates are very low or very high in the judgement of the fund manager, then the duration may be beyond this range
Strategy:
Of the Debt allocation. #Debt Oriented schemes of HDFC Mutual Fund. For complete details, please refer to Scheme Information Document. The proposed investment strategy is subject to change depending on the market conditions.
Overnight, Liquid, Ultra Short, Low Duration, Short Duration, Medium duration, Medium to long duration, Long Duration categories of MF Schemes
Duration based allocation (75%-100%)*#
All other categories of Debt oriented MF Schemes
Sectoral/Thematic allocation (0-25%)*#
*
Interest Rate Outlook
18
Refer disclaimers on page 29.
RBI and major Central banks likely to continue with accommodative stance and low rates
Continued intervention by RBI through unconventional tools like Operation TWIST, LTROs, Targeted LTROs, increasing HTM limit, OMOs for State Development Loans, etc.
Muted credit growth vs. deposits growth; Ample global and domestic liquidity
Risk of 2nd / 3rd wave of Covid-19 which can impact the economic recovery
Factors supporting lower yields
Large supply of dated securities by Central and State Governments
Excess SLR securities holding of PSU banks
Average inflation likely to remain above RBI’s target of 4%
Improvement in global growth outlook and rise in commodity prices
Domestic economic activity has improved significantly and outlook remains optimistic
Factors opposing lower yields
Long end yields are likely to remain range-bound in the near term while yields at short end could rise over time
Gold Allocation to act as hedge
Returns from Gold in domestic currency terms (INR)are a function of :
Gold prices in USD Currency fluctuation of INR vs USD (INR Depreciation increases Returns from Gold and vice versa)
Taxes & duties as levied by government
Gold acts not only as a safe haven asset, but also as a hedge against currency depreciation and inflation.
19
Refer disclaimers on page 29.
The Scheme will invest in Gold ETFs, which invest in gold.
Allocation within Equities
Equity Oriented schemes of HDFC Mutual Fund. #of the Equity Allocation. $Market Cap Based. For complete details, please refer to Scheme Information Document. The proposed investment strategy is subject to change depending on the market conditions.
Equity Oriented Schemes* (40%-80%)
Base Allocation#$
75%-100%
Large Cap, Mid Cap, Small cap and Flexi Cap categories of MF Schemes
Tactical Allocation#
0-25%
All other categories of MF Schemes
20
Refer disclaimers on page 29.
*
Base Allocation within Equity : Model driven asset allocation
HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. TTM- Trailing 12 Months, PE – Price/ Earnings. Depending on the market and other conditions, the asset allocation may or may not be based on the model.
Factors considered by the model include 1) TTM PE, 2) 1 Year Forward PE
Model will indicate the % of Midcap & Smallcap allocation, devised on the basis of back testing results
Portfolio will be rebalanced on a quarterly basis (In Respect of Market Cap)
Historical Asset Allocation range indicated by the model
0
5,000
10,000
15,000
20,000
25,000
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Dec-
11M
ar-1
2Ju
n-12
Sep-
12De
c-12
Mar
-13
Jun-
13Se
p-13
Dec-
13M
ar-1
4Ju
n-14
Sep-
14De
c-14
Mar
-15
Jun-
15Se
p-15
Dec-
15M
ar-1
6Ju
n-16
Sep-
16De
c-16
Mar
-17
Jun-
17Se
p-17
Dec-
17M
ar-1
8Ju
n-18
Sep-
18De
c-18
Mar
-19
Jun-
19Se
p-19
Dec-
19M
ar-2
0Ju
n-20
Sep-
20De
c-20
Mar
-21
NIF
TY M
idca
p Le
vels
% o
f Net
Ass
ets
Alloca�on to Midcap & Smallcap (% of Net Assets) (LHS) NIFTY Midcap (RHS)
21
COVID led correc�on
Midcap & Smallcap Rally
Post GFC Recovery
Refer disclaimers on page 29.
Base Equity Allocation % indicated by model during key market events
GFC – Global Financial Crisis Period upto 31 March 2021. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending on the market conditions. The above data is just to indicate the key market events and resultantly higher and lower end of the base allocation indicated by the model. For illustrative purposes only.
Based on valuations, the financial model has indicated an optimal equity allocation during key events as under:
Post GFC Recovery
Mid and Small Cap Rally
COVID-19 led correction*
Dec’11
Apr’17
Apr’20
80%
20%
80%
4.6%
-15.7%
38.2%*
Events Month end Midcap & SmallcapAllocation %
Outperformance of average returns of Midcap & Smallcap over
NIFTY 50 in Next 3 Years
22
Refer disclaimers on page 29.
*
Protection during Market Corrections
HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. Period of cumulative 3 months with negative returns of less than -5% for NIFTY 50 has been considered to show the downward protection via proposed asset allocation model. Returns are absolute
23
Whenever 3 month cumulative returns of NIFTY 50 corrected more than 5%, model based returns fall in most of the instances was lower. Out of 18 downward periods under consideration, the asset allocation model in 16 instances managed to offer protection.
May-12Aug-13Apr-15May-15Aug-15Oct-15Jan-16Feb-16Nov-16Dec-16Oct-18Nov-18Jul-19Aug-19Feb-20Mar-20Apr-20May-20
-5.7%-10.4%-2.8%-1.3%-2.3%-1.2%-3.6%-7.9%-4.3%-5.3%-2.0%-3.0%0.0%-0.2%1.3%
-20.0%-11.4%-10.2%
-8.7%-8.8%-7.2%-5.2%-5.4%-5.4%-6.3%
-12.3%-6.5%-5.0%-8.5%-6.7%-5.3%-7.7%-7.1%
-31.3%-14.9%-11.4%
3.1%-1.5%4.4%3.9%3.1%4.2%2.7%4.4%2.1%-0.3%6.5%3.7%5.3%7.4%8.5%11.3%3.5%1.2%
65%118%39%25%42%23%58%64%67%106%23%45%1%3%NA
64%77%90%
Nifty (B) Difference(A-B)
3 Month Cumulative ReturnsDownside
Capture Ratio(A/B)
Model based Asset Allocation (A)
Month End
Refer disclaimers on page 29.
Based on valuations, the financial model indicated a reasonably optimal asset allocation
Resultantly during periods of market correction, downside was protected.
Why HDFC Asset Allocator Fund of Funds ?
Timing the market for various asset classes is difficult
Lack of diversification leads to higher volatility of returns
Combining negatively correlated/ less correlated asset classes reduces portfolio risk
HDFC Asset Allocator Fund of Funds could be considered as an option to meet diversified asset allocation needs of investors
Active asset allocation with periodic review and rebalancing
Aims to generate better risk adjusted returns
Debt taxation with indexation benefits
You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold- Ray Dalio
24
Refer disclaimers on page 29.
Note: Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which Fund of Funds scheme makes investment (subject to regulatory limits). For complete risk factors and Scheme details, refer Scheme Information Document
Macroeconomic Update: Recovery on track
25
FPI Flows Rs crsGrowth Outlook remains positive
GDP likely to improve sequentially
Strong Global economic recovery should support exports
FY22^ likely to register double digit real growth due to low base and fast pace normalisation of economic activity
Outlook on External sector comfortable supported by large foreign exchange reserves and likely stable capital flows given ample global liquidity
Refer disclaimers on page 29.
-24.4%
-7.3%
0.4%
-1.4%
10.5%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Q1FY21 Q2FY21 Q3FY21 Q4FY21E FY22E
Real GDP to contract by ~8% in FY21
Trade deficit
As % of GDP
Invisibles (net)
Current Account
As % of GDP
Capital Account
Balance of Payment
Foreign Exchange Reserves
-158
-5.5%
133
-25
-0.9%
84
59
476
-101
-3.8%
123
22
0.8%
67
89
580
-157
-5.2%
129
-28
-0.9%
76
48
NA
USD bn FY20 FY21E FY22E
Source: Kotak Institutional Equities
The information here in is based on the assumption that disruption due to Covid-19, if any, will be limited in FY22. However, if impact of Covid-19 is significant in FY22 also, various scenarios presented in this slide may not hold good.
^
26
Macroeconomic Update: Recovery on track
FPI Flows Rs crsUnion Budget 2021-22 announced slew of measures to support growth
Sharp increase in the capital and revenue spending
Setting up Development Financial Institution to fund infrastructure
Setting up of “Bad Bank”, push for privatization, etc.
Fiscal deficit set to widen, partly due to transfer of FCI’s liability on government books
RBI to maintain liquidity at adequate levels to keep easy financial conditions; should provide fillip to growth and limit significant rise in yields
Refer disclaimers on page 29.
-200,000
-
200,000
400,000
600,000
800,000
Ap
r/19
May
/19
Jun
/19
Jul/1
9
Au
g/1
9
Sep
/19
Oct
/19
No
v/19
Dec
/19
Jan
/20
Feb
/20
Mar
/20
Ap
r/20
May
/20
Jun
/20
Jul/2
0
Au
g/2
0
Sep
/20
Oct
/20
No
v/20
Dec
/20
Jan
/21
Feb
/21
Mar
/21
Interbank Liquidity (INR Cr)
Centre's Fiscal deficit as % of GDP
4.1 3.9 3.5 3.5 3.4
4.6
9.5
6.8
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
FY15FY16
FY17FY18
FY19FY20
FY21RE
FY22BE
Fund Facts
Investment Objective
Type of Scheme An open ended Fund of Funds scheme investing in equity oriented, debt oriented and gold ETF schemes
To seek capital appreciation by managing the asset allocation between equity oriented, debt oriented and gold ETF schemes.There is no assurance that the investment objective of the Scheme will be realized.
Mr. Amit Ganatra (Equity oriented schemes), Mr Anil Bamboli (Debt oriented Schemes), Mr Krishan Kumar Daga (Gold ETFs)
Direct PlanRegular Plan
Under Each Plan: Growth & Payout of Income Distribution Cum Capital Withdrawal (IDCW) option and Re-investment of Income Distribution Cum Capital Withdrawal (IDCW) Option
Purchase: Rs. 5,000/- and any amount thereafterAdditional Purchase: Rs 1,000 and any amount thereafter
90% NIFTY 50 Hybrid Composite Debt 65:35 TR Index + 10% Domestic Price of Gold arrived at based on London Bullion Market Association's (LBMA) AM fixing price
Fund Manager
Plans
Options
Minimum ApplicationAmount (Under Each Plan/Option)
Load Structure
Benchmark Index
Entry Load
Exit Load
In respect of each purchase / switch-in of Units, 15% of the units (“the limit”) may beredeemed without any Exit Load from the date of allotment.
Any redemption in excess of the above limit shall be subject to the following exit load:
Exit Load of 1.00% is payable if units are redeemed / 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 allotment.
In case of Systematic Transactions such as SIP, GSIP, STP, Flex STP, Swing STP, Flex index; Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.
Not Applicable.
During NFO - Purchase: Rs 5,000 and any amount thereafterDuring continuous offer period (after scheme re-opens for repurchase and sale):
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Units of domestic Mutual Fund Schemes as under:
Equity Oriented Schemes*
Debt Oriented Schemes**
Gold ETF Schemes***
Debt Securities & Money Market Instruments
95
40
10
10
0
100
80
50
30
5
Low to High
Low to Medium
Medium to High
Low to Medium
Type of InstrumentsMinimum Allocation(% of Total Assets)
Maximum Allocation(% of Total Assets)
Risk Profile ofthe Instrument
Under normal circumstance, the asset allocation of the scheme’s portfolio will be as follows
Equity Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. Debt Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. HDFC Gold ETF and/or other schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributesFor complete details, please refer to Scheme Information Document
******
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Asset Allocation
Refer disclaimers on page 29.
This presentation dated 9th April 2021 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 and not an investment advice. 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. The information herein is based on the assumption that disruption due to Covid-19, if any, will be limited in FY22. However, if impact of Covid-19 is significant in FY22 also, various scenarios presented in this slide may not hold good. Past performance may or may not be sustained in future. Stocks/Sectors referred in the presentation are illustrative and should not be construed as an investment advice or a research report or a recommended by HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these sectors. HDFC Mutual Fund/AMC is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. 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.
Disclaimer & Risk Factors
29
Thankyou