discover the true value before the world does. - … capi… · unproven business models usually do...
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^IMPORTANT NOTE: Effective May 23, 2018 the fundamental attributes of HDFC Capital Builder Fund have been modified and the Scheme has been renamed as HDFC Capital Builder Value Fund and shall follow the investment strategy mentioned on page 3. For details refer SID/KIM available on our website www.hdfcfund.com
May, 2018
Presenting HDFC Capital Builder Value Fund^
Please refer page 22 for product labelling
Discover the true value, before the world does.
(An open ended equity scheme following a value investment strategy)
The Scheme’s approach is opportunity dependent, primarily buying value stocks.
Focus on undervalued stocks that are trading below intrinsic value, as measured by potential earnings or asset values, and/or future cash flow growth.
Does not consciously seek to be contrarian. However, many opportunities would require a contrarian view. The Scheme may own good businesses going through a temporary difficult period as they usually present an attractive entry point.
Seeks to buy companies with strong track record. As a result, unproven business models usually do not enter the portfolio.
Avoids companies where management quality is poor and there is history of corporate governance issues.
Overall preference is to buy companies with good cash flows and strong management and own them for an extended period of time.
Investment philosophy and approach
For complete existing scheme related details kindly refer Key Information Memorandum / Scheme Information Document
2
HDFC CAPITAL BUILDER VALUE FUND
A Value Investment Strategy
No Sector bias
Well diversified across sectors-with a bias towards attractive companies in each sector (Refer page 6).
Value Bias
The Scheme will generally maintain a minimum of 50% of the equity portfolio in stocks where
- Trailing P/E (Price/Earnings) or trailing P/B (Price /Book Value) Ratio is less than Median P/E or P/B of stocks in
the NSE 500 Index (Refer page 4).
No Market cap bias
Being a multi-cap fund benchmarked to the NIFTY 500 there is an attempt to have good representation across market
capitalizations based on opportunity and risk-reward .
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.
3
GUIDING PRINCIPLES FOR PORTFOLIO CREATION
Focus on buying value stocksBottom-up stock picking within sectorSectoral diversificationEnsuring consistency of risk adjusted returns44
HDFC CAPITAL BUILDER VALUE FUND
What has worked ?
• Bottom-up value stock picking across sectors has generated alpha over benchmark in 19 out of 24 financial years.
(Refer page 9)
• The fund has maintained a value bias and there is no material change in strategy post the scheme re-categorization
as a value fund w.e.f. May 23, 2018.
Value biased
What has worked in the past (value bias) to continue going forward
4
HDFC CAPITAL BUILDER VALUE FUND
Consistent approach to diversification
Average Top 10 Holding (%) since March 2015 = 41%
Average Number of stocks since March 2015 = 54
Risk Management through portfolio diversification
Low portfolio concentration
5
HDFC CAPITAL BUILDER VALUE FUND
The Scheme has maintained exposure to at least 13 sectors in the benchmark (NIFTY 500) over last 4 fiscal years.
Outperformance generated over benchmark (Refer page 9) without excessive risk owing to sectoral tilts.
Risk management through wide sectoral diversification
Source: Bloomberg - Sector classification as per IISL
Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these stocks/sectors.
The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.
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Effective diversification across wide array of sectors to manage risk
SECTOR JUN.14 SEP.14 DEC.14 MAR.15 JUN.15 SEP.15 DEC.15 MAR.16 JUN.16 SEP.16 DEC.16 MAR.17 JUN.17 SEP.17 DEC.17 MAR.18
Financial Services 28.4 27.4 30.9 28.4 27.2 28.2 24.3 22.9 25.1 27.0 27.8 28.0 29.4 30.2 29.7 31.3
Energy 12.1 11.4 11.5 12.1 12.1 11.6 13.3 11.3 9.6 9.8 9.1 10.9 10.1 11.0 12.0 14.2
Consumer Goods 7.1 8.4 7.5 7.1 7.4 7.7 9.0 9.6 7.3 7.9 7.6 10.1 11.1 9.3 9.5 9.4
Construction 8.2 5.5 6.5 8.2 9.3 8.6 10.1 9.2 9.3 10.0 10.5 10.6 10.7 10.3 10.3 8.1
IT 11.4 15.0 13.9 11.4 11.3 11.7 10.9 9.7 11.3 8.9 9.4 8.4 8.6 7.5 6.8 7.5
Pharma 9.0 9.5 8.9 9.0 9.5 9.9 9.3 6.8 8.2 9.1 9.1 6.8 7.9 8.0 7.3 6.6
Metals 0.9 1.0 - 0.9 1.6 1.4 1.4 1.2 1.8 0.9 1.2 1.3 3.3 6.3 5.7 5.2
Services 1.1 1.2 1.2 1.1 1.0 1.2 1.6 2.4 3.4 4.2 4.0 4.7 4.4 4.5 5.4 5.0
Industrial Manufacturing 3.1 3.9 3.8 3.1 2.8 3.6 4.1 2.2 2.0 1.5 1.7 1.8 1.7 2.7 2.9 2.9
Automobile 6.2 5.5 5.5 6.2 4.9 4.4 5.9 6.2 6.7 6.1 6.0 5.5 5.2 4.6 3.1 2.7
Media & Entertainment 1.7 2.0 1.6 1.7 2.5 3.2 4.5 4.3 4.4 4.5 4.0 3.6 3.6 3.3 3.6 2.7
Cement & Cement Products 3.9 1.5 2.0 3.9 4.0 3.7 5.4 4.2 4.7 3.7 3.5 - - 0.8 0.9 1.6
Chemicals 5.6 5.7 5.0 5.6 5.4 2.6 2.6 2.1 1.8 1.7 1.9 1.9 1.9 2.0 2.0 1.6
Telecom 1.4 2.2 1.8 1.4 1.3 2.2 2.8 3.3 4.4 4.2 4.0 3.7 2.6 0.6 0.2 1.1
HDFC CAPITAL BUILDER VALUE FUND
Average Deviation from benchmark less than +/- 2% in 13 out 18 sectors over last 16 quarters .
Heat Map :- Sector Overweight/ Underweight vis-à-vis benchmark.
Diversification similar to the benchmark
Source: Bloomberg - Sector classification as per IISL
Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these stocks/sectors.
The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.
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Sectors Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18
+/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- +/- Average
Construction 3.31 0.86 1.94 3.31 4.35 4.20 5.94 5.17 4.97 5.93 6.50 6.45 6.42 6.04 5.87 3.58 4.68
Services -1.22 -0.95 -1.06 -1.22 -0.84 -1.06 -0.29 0.60 1.64 2.23 2.17 2.65 2.53 2.61 3.40 3.07 0.89
Energy 2.68 -0.04 1.18 2.68 2.17 2.32 2.89 0.61 -0.64 -0.90 -2.38 -0.58 -0.87 -0.75 -0.02 2.56 0.68
Pharma 1.60 2.51 2.36 1.60 1.48 1.11 1.14 -0.82 0.94 1.97 2.22 0.56 2.35 2.88 2.26 1.91 1.63
Media & Entertainment 0.75 1.07 0.59 0.75 1.54 2.22 3.41 3.28 3.30 3.34 2.92 2.42 2.50 2.25 2.51 1.60 2.15
Metals -2.70 -3.16 -3.71 -2.70 -2.02 -1.37 -1.47 -1.78 -1.25 -2.29 -2.29 -2.27 -0.44 1.99 1.39 1.04 -1.44
Chemicals 4.96 5.11 4.33 4.96 4.77 1.92 1.87 1.47 1.14 1.03 1.22 1.06 1.06 1.04 0.96 0.54 2.34
Industrial Manufacturing -0.35 0.90 0.52 -0.35 -0.59 0.35 0.89 -0.75 -0.97 -1.39 -1.24 -1.23 -1.23 -0.04 0.08 0.24 -0.32
Paper -0.02 -0.03 -0.03 -0.02 -0.03 -0.03 -0.05 -0.04 -0.05 -0.05 -0.05 -0.04 -0.04 -0.04 -0.04 -0.03 -0.04
Healthcare Services -0.30 -0.26 -0.25 -0.30 -0.29 -0.32 -0.33 -0.31 -0.28 -0.31 -0.32 -0.34 -0.39 -0.35 -0.37 -0.26 -0.31
Cement & Cement Products 1.14 -1.28 -0.62 1.14 1.33 1.10 2.69 1.23 1.46 0.37 0.58 -3.03 -2.39 -1.65 -1.54 -0.68 -0.01
Textiles -0.47 -0.51 -0.54 -0.47 -0.58 -0.59 -0.72 -0.67 -0.70 -0.67 -0.70 -0.68 -0.65 -0.66 -0.75 -0.69 -0.63
Telecom -1.00 -0.39 -0.50 -1.00 -1.41 -0.12 0.38 1.06 2.35 2.53 2.23 1.96 0.71 -1.25 -1.89 -0.72 0.18
Fertilisers & Pesticides -0.67 -0.68 -0.64 -0.67 -0.73 -0.65 -0.64 -0.68 -0.80 -0.82 -0.97 -0.95 -1.02 -0.95 -0.93 -0.90 -0.79
Financial Services 0.50 1.63 1.91 0.50 -0.66 0.87 -2.69 -3.32 -1.99 -1.65 -0.22 -1.37 -1.32 -1.39 -0.28 -1.43 -0.68
IT -1.24 2.03 1.73 -1.24 -0.39 -1.58 -1.62 -3.95 -0.93 -1.57 -1.60 -1.39 -0.46 -1.19 -2.16 -2.37 -1.12
Consumer Goods -4.31 -3.22 -3.76 -4.31 -4.04 -4.18 -3.19 -2.71 -5.24 -4.09 -4.36 -2.12 -1.85 -2.92 -2.68 -3.16 -3.51
Automobile -2.64 -3.60 -3.43 -2.64 -4.06 -4.18 -3.21 -3.07 -2.85 -4.16 -3.92 -3.37 -4.45 -4.85 -6.37 -6.36 -3.98
Sectoral presence similar to benchmark, coupled with bottom up stock picking
has generated consistent alpha over the years (Refer page 9)
HDFC CAPITAL BUILDER VALUE FUND
A Consistent Performer*
Source: ICRA Online. Schemes included are Multicap Funds based on Icraonline categorization as on 30th April 2018. Category median refers to the mid-point of therange of CAGR returns for each day of observation for the Schemes under the category. * Past performance may or may not be sustained in the future. The study cited above is for general information and illustrative purposes to explain the concept of consistent performance and should not be construed as an investment adviceon minimum returns or guarantee of returns. Due to personal nature of investments and financial planning, investors are advised to consult their financial advisor. *Multi-Cap universe considered for illustrative purpose only.
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HDFC CAPITAL BUILDER VALUE FUND
• 3 year and 5 year CAGR rolling returns on a daily basis analysed for the past 5 years for each day falling during the period 30th Apr 2013 to 30th Apr 2018• Category median 3 and 5 year CAGR observed for each day over the said 5 year period amounts to 1230 number of observations• HDFC Capital Builder Value Fund outperformed the
category median on all 1230 observations.
Why look at Consistency?• A fund having large outperformance in a particular financial year may not sustain the same year after year. Hence, trying to predict whichfund will top the chart in the next one year may not be possible.• While choosing funds, one needs forward looking analysis that does not focus only on funds with strong recent performance.• Consistent funds may not be the highest in terms of quantum of returns delivered, but would have delivered above median returns duringmost points in time.
For complete performance details, refer pages 20 to 21
HDFC Capital Builder Value Fund No of Funds in Category No of Observa�ons % �mes > Median Average CAGR of 1230 observa�ons
3 Year Rolling Returns 70 1230 100% 16.6%
5 Year Rolling Returns 66 1230 100% 16.7%
Internal study of Multi-Cap Funds*
HDFC Capital Builder Value Fund - Growth
Returns are for Regular Plan Growth Option. Benchmark - NIFTY 500 TRI. As on March 28th 2018*Scheme taken over from Zurich India Mutual Fund with effect June 20th 2003 .Past performance may or may not be sustained in the future. HDFC AMC is not guaranteeing returns on any investments made in this Scheme. For complete performance details refer page 20.
^Outperformance in 19 out of 24 financial years with consistent outperformance in last 11 years*
Consistent^ Alpha generation and dividend declaration
14 Year Dividend Track Record
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Dividend per unit (Rs) 5.0 5.0 5.0 3.0 3.5 2.0 2.3 2.5 2.5 2.5 2.5 3.0 2.8 3.0 3.5
NAV (Record Date) 19.5 22.6 26.6 26.4 30.9 12.9 24.0 24.8 22.6 22.4 21.8 31.4 23.4 28.8 31.8
Dividend Yield (%) 25.6 22.1 18.8 11.4 11.3 15.5 9.4 10.1 11.1 11.2 11.5 9.6 11.7 10.4 11.0
Date Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16Mar-17Mar-18
HDFC Capital Builder Value Fund (A)
15.2% -29.7% -23.0% 23.7% 65.6% 7.9% -21.8% 8.0% -9.5% 129.1% 56.3% 68.3% 0.2% 26.0% -38.7% 108.6% 14.9% -5.5% 6.9% 23.4% 43.2% -2.5% 27.8% 14.57%
Benchmark (B) -15.2% -13.8% -9.8% 13.3% 6.0% 74.5% -43.0% 2.8% -9.6% 107.8% 21.6% 64.2% 8.1% 21.6% -40.0% 88.0% 7.3% -8.7% 5.1% 17.7% 33.6% -7.5% 23.9% 12.87%
Outperformance (A – B)
30.4% -15.8% -13.2% 10.4% 59.6% -66.5% 21.2% 5.2% 0.0% 21.3% 34.7% 4.2% -7.9% 4.3% 1.4% 20.6% 7.7% 3.2% 1.8% 5.7% 9.6% 5.0% 3.9% 1.7%
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 any. There is no assurance or guarantee to unit holders as to rate/quantum of dividend distribution nor that the dividends will be paid regularly. Dividend payout is subject to availability of distributable surplus. Please log on to www.hdfcfund.com for Record Date-wise listing of dividends declared.As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of NIFTY 500 PRI values from Feb 01, 94 to Dec 31, 94 and TRI values since Jan 01, 95.
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HDFC CAPITAL BUILDER VALUE FUND
Returns CAGR(%)
1 Year 3 Years 5 Years 10 Years 15 Years
More than 20 43 42 33 53 46
More than 15 51 52 52 75 88
More than 10 59 67 74 94 100
More than 0 72 82 100 100 100
More than -10 80 93 100 100 100
More than -20 88 99 100 100 100
Consistently delivering positive returns over long term horizon
Example: Over a 5 year horizon, investment in HDFC Capital Builder Value Fundhas always yielded positive returns. Further, in 74% instances, investors have earned returns exceeding 10% and so on.
% of instances across return ranges
As on March 31st 2018. Daily Rolling returns since inception date of the scheme (1st Feb ’94)Past performance may or may not be sustained in the future. HDFC AMC is not guaranteeing returns on any investments made in this scheme. For complete performance details refer page 20.
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HDFC CAPITAL BUILDER VALUE FUND
P1- Mid 90s Crash:-01-Feb-94 to 22-Nov-96 P8- Eurozone debt crisis:-09-Nov-10 to 30-Jan-12P2- Tech Bubble peak:-22-Nov-96 to 11-Feb-00, P9-Policy paralysis:-30-Jan-12 to 31-Aug-13P3- Tech bubble meltdown -11-Feb-00 to 21-Sep-01, P10-Oil Price correction:-31-Aug-13 to 31-Mar-15P4- US Fed monetary policy easing:-21-Sep-01 to 14-Jan-04, P11-ECB easing and global growth stabilisation: 31-Mar-15 to 31-Jan-18P5- India discovery/Emerging market rally:-14-Jan-04 to 08-Jan-08, P12-LTCG on equities:-31-Jan-18 to 31-Mar-18P6- Global Financial Crisis Lows:-08-Jan-08 to 09-Mar-09,P7- Post Crisis Recovery:-09-Mar-09 to 09-Nov-10,
Resilient performance across market volatility periods
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 HDFC Capital Builder Value Fund -17% 35% -30% 59% 45% -57% 94% -18% 5% 50% 17% -8%
NIFTY 500 TRI # -19% 16% -46% 65% 38% -58% 81% -19% 4% 37% 14% -8%
NIFTY 50 TRI ## -12% 12% -35% 47% 36% -53% 73% -15% 6% 31% 11% -8%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
HDFC Capital Builder Value Fund NIFTY 500 TRI # NIFTY 50 TRI ##
Outperformed NIFTY 500
Underperformed NIFTY 500
Outperformed Benchmark index (NIFTY 500) in 11 out of 12 periods.
*Data since scheme inception date (1st Feb 1994). # NIFTY 500-As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of NIFTY 500 PRI values from Feb 01, 94 to Dec 31, 94 and TRI values since Jan 01, 95. ## NIFTY 50 - As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from Feb 01, 94 to June 29, 99 and TRI values since June 30, 99. Returns are compounded and annualized for more than one year period. Past performance may or may not be sustained in future. Scheme returns are for Regular Plan-Growth Option. For complete performance details refer page 20 . Source:- Publicly available information.
11
HDFC CAPITAL BUILDER VALUE FUND
Indian Economy : Strong fundamentals, improving growth outlook
Source: CEIC, CSO, RBI, Morgan Stanley Research ; Economic Survey, E-Morgan Stanley estimates
Source: Macquarie research
IIP above 7% for 4 consecutive months, first time since 2013
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RBI estimates growth outlook to improve. Expects GDP growth of 7.4% and 7.7% in FY19 and FY20
respectively vs 6.6% in FY18
Sustained IIP growth in last few months led by improvement in manufacturing activity and pick up
in capital goods, Infra & construction
Pickup in credit growth, sharp increase in NHAI awarding activity, large industrial projects pipeline are positive
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
GDP at market price (% YoY) 5.5 6.4 7.5 8.0 7.1 6.7 7.2 7.6
Centre's fiscal deficit (% GDP) 4.9 4.5 4.1 3.9 3.5 3.5 3.4 3.1
Current Account Deficit (CAD) (% GDP) 4.7 1.7 1.3 1.1 0.7 1.2 1.7 1.9
Net FDI (% of GDP) 1.1 1.2 1.5 1.7 1.6 1.6 1.5 NA
Consumer Price Inflation (CPI) (Average) 10.2 9.5 6.0 4.9 4.5 3.4 4.6 4.3
India 10 year Gsec Yield % (at year end) 8.0 8.8 7.7 7.5 6.7 7.55 NA NA
HDFC CAPITAL BUILDER VALUE FUND
Equity Markets Outlook – Strong earnings growth ahead
Data Source: Kotak Institutional Equities, Morgan Stanley, updated till 31st March, 2018, Market Cap to GDP for 2018E and 2019E are based on current market cap to GDP and GDP estimate by Kotak Institutional Equities. Year is Calendar year
Past performance may or may not be sustained in future
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Earnings outlook is improving with improvement in operating margins, peaking NPA’s and higher metal prices
Successful resolution in NCLT will positively impact banks, private capex and steel etc.
Markets are trading at CY19(e) p/e of ~14.9x, which is reasonable, especially given improving growth and earning outlook
Global developments, US rates, elections, setback to NCLT etc. can lead to increased volatility
Marketcap to GDP ratio at
70%, specially at ~2.3% Corporate
profit to GDP is attractive
HDFC CAPITAL BUILDER VALUE FUND
P/E Expansion
Blended Forward PE Average
Blended Forward P/E Average since Mar’05 = 14.5
Source: BloombergData as on March 31st 2018
HDFC AMC/MF is not guaranteeing/offering/communicating any indicative yield on investments made in the schemes.
14
Market P/E has witnessed expansion over the past 4 fiscal years on account
of stronger macro economic fundamentals and favourable global cues.
HDFC CAPITAL BUILDER VALUE FUND
Earnings Yield Minus 10 Year G-Sec
EARNINGS YIELD MINUS 10 YR G-SEC IS BELOW LONG TERM AVERAGES
Earnings Yield - 10 Yr G-Sec Average
Source: Bloomberg .Calculation reflects the difference between the estimated earnings yield and the prevailing 10 year G-Sec benchmark. For the purpose of estimating the earnings yield, the estimated forward P/E of the NIFTY 500 Index has been used. Data as on March 31st 2018.
HDFC AMC/MF is not guaranteeing/offering/communicating any indicative yield on investments made in the schemes.
15
Although earnings yield to 10 Year G-Sec Yield spread is below long term average, the spread has reduced recently owing to reduction in bond yields in the backdrop of first half borrowings by the Government.
Earnings growth needs to improve
HDFC CAPITAL BUILDER VALUE FUND
Data as on 30 April 2018
@Since inception (Feb 01,1994), ^ Assuming Rs 10,000 invested systematically on the first business day of every month over a period of time. Returns as of Apr 30, 2018. Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices. # NIFTY 500-As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of NIFTY 500 PRI values from Feb 01, 94 to Dec 31, 94 and TRI values since Jan 01, 95. ## NIFTY 50 - As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from Feb 01, 94 to June 29, 99 and TRI values since June 30, 99. 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. Different Plans viz. Regular Plan and Direct Plan have a different expense structure. The above investment simulation is for illustrative purposes only. The AMC / mutual fund is not guaranteeing or promising or forecasting any returns.
A SIP of Rs 10,000@ in HDFC Capital Builder Value Fund= Rs 4.47 cr^
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Total Amount Invested (Rs.’000) 2,910.00 1,800.00 1,200.00 600.00 360.00 120.00
Market Value as on April 30, 2018 (Rs.’000) 44,658.18 8,374.95 3,086.72 976.06 477.14 130.17
Returns (Annualised)(%) 18.74 18.50 17.98 19.58 19.23 16.21
Benchmark Returns (Annualised)(%)# 15.01 14.80 14.38 16.46 17.32 14.14
Additional Benchmark Returns (Annualised)(%)# # 13.53 13.91 12.74 13.58 15.02 13.71
SIP InvestmentsSince Inception
15 year SIP 10 year SIP 5 year SIP 3 year SIP 1 year SIP
HDFC CAPITAL BUILDER VALUE FUND
Portfolio CompositionAs on April 30, 2018
* Average AUM for the Month ended April 30, 2018 ** Risk Free Rate 9.39% (Source FIMMDA, MIBOR) For complete portfolio details please visit www.hdfcfund.com
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Top 10 Equity And Equity Related Holdings 39.57%
Total Equity & Equity Related Holdings 95.27%
Cash, Cash Equivalents And Net Current Assets 4.73%
Average Assets Under Management (Rs. In Crore)* 2,916.09
Standard Deviation** 4.583%
Beta** 1.048
Sharpe Ratio** 0.171
Particulars % To Net Assets
HDFC CAPITAL BUILDER VALUE FUND
Scheme Facts
For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and atInvestor Service Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Rakesh Vyas.
18
Type of Scheme An open ended equity scheme following a value investment strategy
Inception Date (Date of allotment) February 01, 1994
Investment Objective To achieve capital appreciation/income in the long term by primarily investing in undervalued stocks. There is no assurance that the investment objective of the Scheme will be realized.
Fund Manager $ Mr. Miten Lathia
Plans Direct Plan Regular Plan
Benchmark Index NIFTY 500
Sub-Options Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.
Minimum Application Amount Purchase: Rs. 5,000 and any amount thereafter Additional Purchase: Rs. 1,000 and any amount thereafter(Under Each Plan/Option)
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 service rendered 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 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 respect of Systematic Transactions such as SIP, Flex SIP, GSIP, STP, Flex STP, Swing STP, Flex index, etc - Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.
HDFC CAPITAL BUILDER VALUE FUND
Asset Allocation Pattern
Under normal circumstances, the asset allocation (% of net assets) of the Scheme’s portfolio will
be as follows, with effect from May 23, 2018:
The Scheme may invest in the schemes of Mutual Funds in accordance with the applicable extant SEBI (Mutual Funds)
Regulations as amended from time to time. The Scheme may invest up to 35% of its net assets in foreign securities.
The Scheme may invest upto 100% of its net assets in Derivatives.
Types of Instruments Total Assets (%) Risk Profile
Equity and Equity relatedinstruments
65-100 High
Debt Securities (includingsecuritised debt) and moneymarket instruments
0-35
Low to Medium
Units issued by REITs and InvITs 0-10 Medium to High
Non-convertible preferenceshares
0-10 Low to Medium
For complete asset allocation pattern table, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at Investor Service Centres of HDFC Mutual Fund
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HDFC CAPITAL BUILDER VALUE FUND
The above scheme has been managed by Miten Lathia, the fund manager since Mar 20,2017.
The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices.
Past performance may or may not be sustained in the future. The above returns are of Regular Plan – Growth Option. Returns greater than 1 year period are
compounded annualized (CAGR). Load is not taken into consideration for computation of performance. #NIFTY 500- As TRI data is not available since inception of
the scheme, benchmark performance is calculated using composite CAGR of NIFTY500 PRI values from Feb 01, 94 to Dec 31, 94 and TRI values since Jan 01, 95.
## NIFTY 50 -As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI
values from Feb 01, 94 to June 29, 99 and TRI values since June 30, 99. 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
30th April , 2018.
Scheme Performance Summary
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Value of Rs 10,000 invested
Scheme Returns (%)
Benchmark Returns (%) #
Addi�onal Benchmark
Returns (%) ##
Scheme Benchmark
(Rs)#
Addi�onal Benchmark
(Rs)##
Last 1 year 18.23 16.91 16.91 11,823 11,691 11,691
Last 3 years 15.16 13.40 10.89 15,279 14,586 13,640
Last 5 years 21.29 16.74 14.03 26,259 21,693 19,286
Since inception(Feb 01, 1994) 15.05 11.20 10.52 300,107 131,260 113,165
HDFC CAPITAL BUILDER VALUE FUND
Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of
the Indices. The above returns are of Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. # The scheme
is co managed by Miten Lathia (Equities) and Anil Bamboli (Debt). Returns as on 30th April, 2018. 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.
Other scheme(s) managed by the fund manager
Scheme
Managing scheme since
Cumulative Performance
1 year 3 year 5 year CAGR (in %) CAGR (in %)
Miten Lathia manages 2 schemes
HDFC Dynamic PE Ratio Fund of Funds # 27-Jun-14- 5.90 9.74 9.74 NIFTY 50 Hybrid Composite Debt 65:35
Index (Benchmark Index) 12.38 9.79 11.92
21
HDFC CAPITAL BUILDER VALUE FUND
Product Labelling
22
HDFC CAPITAL BUILDER VALUE FUND
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
This product is suitable for investors who are seeking*:
To generate long-term capital appreciation / income in the long term
Investment primarily in undervalued stocks
RISKOMETER
Disclaimer
23
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,
READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
The presentation dated 29th May 2018 has been prepared by HDFC Asset Management Company Limited (HDFC AMC) based
oninternal 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 given is for general
purposes only. Past performance may or may not be sustained in future. The statements are given in summary form and do not purport
to becomplete. The views / information provided do not have regard to specific investment objectives, financial situation and
theparticular needs of any specific person who may receive this information. The information/ data herein are not investment advice
and 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. Stocks/Sectors referred herein
are illustrative and not 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 returns on any investments. The data/statistics are given on the basis of
information which is already available in publicly accessible media to explain general market trends in the securities market. The same
should not be construed as any research report/research recommendation to buy or sell any security covered under the respective
sector/s. Neither the 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.
HDFC CAPITAL BUILDER VALUE FUND