hdfc multi asset fund...this presentation dated 6th october 2020 has been prepared by hdfc asset...

HDFC Multi Asset Fund (An open ended scheme investing in equity and equity related instruments, debt and money market instruments and Gold related instruments) is suitable for investors who are seeking*:

Riskometer

To generate long term capital appreciation/incomeInvestments in a diversified portfolio of equity & equity related instruments, debt & money market instruments and Gold related instruments.

Investment Opportunity in a VUCA^* world

HDFC Multi Asset Fund

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

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

* In a dynamic world, financial markets are subject to uncertainties and different asset classes react differently to such uncertainties. As the scheme invests in 3 asset classes, the portfolio could mitigate volatility of returns arising from such uncertainties.Erstwhile HDFC Multiple Yield Fund-Plan 2005. Effective May 23, 2018 the fundamental attributes of the Scheme have been modified and the Scheme has been renamed HDFC Multi Asset Fund and shall follow the investment strategy mentioned on page 20. Please refer to the Addendum dated April 12, 2018 available on our website / at our ISCs for details on the changes.

^ Volatile, Uncertain, Complex, Ambiguous

Table of Contents

2

3

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8

9

10

11

12

13

14

15

16

17

20-24

27-28

Why Equity ?......................................................................................................................................................

Why Debt ?.........................................................................................................................................................

Why Gold ?.........................................................................................................................................................

Gold and Low Interest Rates...........................................................................................................................

Gold as a hedge against currency depreciation..........................................................................................

Different asset classes outperform at different times................................................................................

Asset Class winners change over time..........................................................................................................

Different Asset classes have different risk profiles.....................................................................................

Correlation and diversification......................................................................................................................

What is asset allocation and why is it needed ?..........................................................................................

Power of asset allocation................................................................................................................................

Why Multi –Asset Fund?..................................................................................................................................

HDFC Multi Asset Fund : Strategy and Portfolio Statistics................................................................

Performance Disclosure...........................................................................................................................

3

Equities, while being volatile over short periods of time, tend to be a prudent investment over longer time horizons

Over the long run, equity returns tend to track underlying fundamentals and are determined by the following factors:

Long term growth of the economy

Growth in corporate earnings

These components explain nearly all of the stock market returns over extended holding periods.

Stable financial & regulatory framework

Why Equity?

Source : MFI Explorer, Aug-00 to Aug-20

Return Range % CAGR 1 Year 3 Years 5 Years 10 Years

<0%

0 to 5%

5% to 10%

10% to 15%

15% to 20%

>20%

29%

9%

9%

11%

8%

33%

11%

15%

25%

19%

8%

22%

6%

18%

24%

25%

10%

17%

0%

11%

27%

33%

28%

1%

Daily Rolling Returns of NIFTY 50 (% CAGR)

As can be seen from the table below, variability of equity returns reduces as time horizon increases. In the below table, daily rolling returns of NIFTY 50 over the past 2 decades have been considered. Based on past outcomes - for an investment horizon of 1 year, probability of negative returns is 29%; however if investment horizon increases to 10 years – probability of negative returns drops to 0.

Markets recovered sharply in 2QCY20 led by sharp recovery in FPI inflows & increased participation by retail investors / HNIs. Domestic mutual fund inflows decelerate.

FY21 P/E is less relevant due to significant dislocation of profits expected in several sectors. NIFTY 50 (~11,400 level, 31-Aug-20) is trading at FY22 P/E of 18.6 times

(Source: Kotak Insti Equities)

Price / Book Value, Marketcap / GDP are better measures in current situation. Prevailing Price / Book Value , Marketcap / GDP are near long term averages (refer adjacent chart 1 & chart 2)

Low interest rates, reversion to normalcy, FPI inflows are supportive of a positive outlook

4

Equity Markets Update : Valuations near long term averages

Chart 1 India market cap to GDP ratio, calendar year-ends, 2000-21E (%)

35 26 30

48 55

69

88

149

56

99 98

61 72

65

81 75 71

92

78 77 82

73

0

5

10

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25

30

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20

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60

80

100

120

140

160

200

0

200

1

200

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8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

E

2021

E

Mcap/GDP (%) P/E (X)

Chart 2

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Aug-05

Aug-06

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19

Aug-20

P/B (X) Avg.

Source: Kotak Insti Equities, CY20 & CY21 ratio based on current Market cap and GDP estimates of CY20 & CY21

5

Significant impact on corporate profits in FY21 likely; however, minimal impact expected on intrinsic values of most businesses.

Markets recovered sharply in 2QCY20 led by sharp recovery in FPI flows & increased participation by retail investors / HNIs.

Prevailing Price / Book Value , Marketcap / GDP are near long term averages

Historically, sharp corrections in Indian markets triggered by global events were followed by good returns over medium to long term.

10 year NIFTY returns are ~7.7% CAGR as of 31-Aug-20. Historically NIFTY returns below 10% CAGR for a 10 year period have been followed by good returns over next 3, 5 and 10 years

Significant increase in Covid-19 cases in India & across the world, sharp rise in oil prices, sharp escalation in border dispute with China, etc. are key risks in near term

Refer Disclaimer on Page 29

Equity Markets Summary :Opportunity in adversity

56

Why Debt?

While Equities aim to provide capital appreciation over a longer time horizon, Debt aims to provide better stability to a portfolio

Equities do generate higher returns than Debt over the long term. However, Debt is less volatile as compared to Equities (Refer chart below)

Standard Deviation % of Daily returns considered.Proxies used for asset classes :Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec

7

7.5

8

8.5

9

9.5

10

10.5

11

Equity Debt

Returns % CAGR (Apr’98 to Aug’20)

0

5

10

15

20

25

Equity Debt

Risk -Annualized Standard Deviation%(Apr’98 to Aug’20)

Why Debt? DEBT

57Refer Disclaimer on Page 29

Interest Rates Outlook

RBI and major Central banks likely to continue with accommodative stance and low rates

Uncertainty over global growth outlook remains due to disruption and risk of second wave of COVID-19 infections

Commodity prices likely to be range bound given the weak growth outlook in near term

Unconventional tools used by RBI to improve transmission of rate cuts (Operation TWIST, LTROs, Targeted LTROs)

Muted credit growth vs. deposit growth; Ample global and domestic liquidity

Excess SLR securities holding of PSU banks

Large supply of dated securities by Central and State Governments

Near term inflation likely to remain above RBI’s target of 4%

Economic activity showing sign of recovery and likely to improve sequentially

Schemes with short to medium duration offer better risk adjusted returns, in our judgement

Factors supporting lower yields Factors opposing lower yields

8

Tool to effectively diversify portfolio.

Considered a hedge against currency devaluation

Low /Negative correlation with other asset classes.

Considered a hedge against inflation

01 02

03 04

Why Gold ?

9

Source: Bloomberg. BIS For 2020, Central Bank policy rates as of 31st August 20 have been consideredThe scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

Chart 1

Chart 2

1000

1200

1400

1600

1800

2000

2200

0

2

4

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8

10

12

14

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18

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

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Aug-18

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Aug-19

Feb-2

0

Aug-20

Go

ld P

rice

(US

D /

Tro

y O

un

ce)

Mar

ket

Val

ue

(US

D T

rn)

Barclays Negative Yielding Debt (Market Value-USD Trn) (LHS)

Gold Price (USD/Troy Ounce) (RHS)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Rate Cut No Change Rate Hike

Gold and Low Interest Rates

Economic fallout of COVID-19 has hampered growth prospects globally

To stimulate economic growth, Central banks around the world have further reduced policy rates ,from already subdued levels

As can be seen from the chart 1, 87% of Major central Banks (covered by BIS) have cut policy rates in 2020 – the highest level since global financial crisis

Chart 2 indicates that increase in negative yielding debt globally has increased the popularity of Gold .

Global economic slowdown and low interest rates increase the popularity of Gold as a safe haven asset.

Data from 1st April 1998 to 31st August 2020 Source : Bloomberg, World Gold Council. To ensure that return are comparable, prices of Gold , excluding taxes/duties have been consideredThe scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

Gold as a hedge against currency depreciation

11.7%

0%

2%

4%

6%

8%

10%

12%

Gold USD Gold INR

Gold Returns CAGR % (Apr'98 to Aug'20)

Difference in returns due to

INR Depreciation = ~3.1% CAGR

Returns from Gold in domestic currency terms(INR) are a function of :

Gold acts not only as a safe haven asset, but also as a hedge against currency depreciation and inflation.

Gold prices in USD

Currency fluctuation of INR vs USD(INR Depreciation increases Returns from Gold and vice versa)

8.6%

10

11

Historical returns tend to bias investors towards the asset class that has performed well recently.

Recency bias could result in investors chasing momentum and picking an asset class at an inopportune time.

Over the last 23 fiscal years equity, debt and gold have outperformed each other at different times.

Source:-Bloomberg. World Gold Council 1st Apr ‘98 to 31st August 20. * Up to 31st August 2020 (Absolute) Data used for asset classes :Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 GramsThe scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

FY 1999 -8% 13% -2% 3 1 2FY 2000 42% 19% 2% 1 2 3FY 2001 -25% 13% 0% 3 1 2FY 2002 -2% 29% 22% 3 1 2FY 2003 -13% 17% 8% 3 1 2FY 2004 81% 13% 16% 1 3 2FY 2005 15% -5% 1% 1 3 2FY 2006 67% 2% 39% 1 3 2FY 2007 12% 6% 11% 1 3 2FY 2008 24% 8% 30% 2 3 1FY 2009 -36% 10% 24% 3 2 1FY 2010 74% 0% 8% 1 3 2FY 2011 11% 5% 28% 2 3 1FY 2012 -9% 3% 32% 3 2 1FY 2013 7% 11% 3% 2 1 3FY 2014 18% -1% -11% 1 2 3FY 2015 27% 15% -4% 1 2 3FY 2016 -9% 8% 10% 3 2 1FY 2017 19% 12% -1% 1 2 3FY 2018 10% 0% 7% 1 3 2FY 2019

Returns Asset Class RankFiscal Year Equity Debt Gold Equity Debt Gold

15% 6% 4% 1 2 3FY 2020 -26% 14% 36% 3 2 1FY 2021* 32% 1% 18% 1 3 2

Rank 1 Rank 2 Rank 3

Equity 12 3 8

Debt 5 9 9

Gold 6 11 6

Out of 23 Fiscal years since FY99, Equity has been the best performing asset class in 12 years. Debt and Gold have been the best performing asset classes in 5 and 6 years respectively.

Different Asset Classes outperform at different times

12

Asset Class winners change over time

Source:-Bloomberg, World Gold Council, Data from 1st Apr ‘98 to 31st August 2020. * Upto 14th Jan 2020. All returns are CAGR %, unless specified otherwise. $ Absolute Returns used as period less than a year. COVID-19 Correction considered from 14th Jan’20 to 23rd Mar’20 & Post Correction Rally from 23rd March 20 to 31st August 20

Data used for asset classes : Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 GramsThe scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

14%

-14%

37%

7%

11%

-38%

50%

16% 20%

5% 5%8% 8%

5% 3% 2%

0%

10%

19% 20%

4%

11%

7%

23%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

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-19 Correction$

Post-Correction Rally$

Equity Debt Gold

Source:-Bloomberg. World Gold Council Data for last 22 fiscal years. Apr ‘98 to Aug ’20 Data used for asset classes :Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Standard Deviation % of Daily returns considered. The scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

13

Different Asset Classes have differentrisk profile

20.2

14.7

4.9

0

5

10

15

20

25

Equity Gold Debt

Risk (Annualized Standard Deviation %)

Equity returns are relatively more volatile vis-à-vis debt and gold.

Debt is less volatile than both, Equity and Gold

14

Correlation and diversification

Asset 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 when the another goes down, the two assets are considered to be negatively correlated.

Daily 1 year rolling returns since Apr’98 exhibit negative correlation between Equity, Debt and Gold.

Low/negative correlation between these asset classes creates a strong case for diversification.

Source:-Bloomberg. World Gold Council Data for last 22 fiscal years. Apr ‘98 to Aug ’ 20 Data used for asset classes :Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Standard Deviation % of Daily returns considered. The scheme invests in gold related instruments and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

Equity Debt Gold

Equity 1 -0.25 -0.04

Debt -0.25 1 -0.09

Gold -0.04 -0.09 1

By combining negatively correlated assets,investors can reduce risk significantly without compromising on returns.

Since April’ 98

15

Asset Allocation refers to distributing your investible surplus across various asset classes according to risk tolerance, risk appetite and investment time frame.

Each asset class behaves differently across different economic cycles (Refer Page Number 12)

It reduces dependency on a single asset class to generate returns.

Mitigates volatility of returns of portfolio (Refer Page Number 16)

What is Asset Allocation and why is it needed?

Why Asset allocation is crucial ?

Determine financial goals

Ascertain risk appetite

Determine optimal asset allocation

Invest in different asset classes directly (or) Invest in a hybrid mutual fund

Rebalance the portfolio periodically

How can investors implement asset allocation?

16

Power of Asset Allocation

How the numbers stack up?Gold and Equity performed better than Debt in terms of returns while debt had the lowest volatility

Yes, a combination of Equity, Debt and Gold (65%,10%,25% respectively) would have yielded returns higher than individual asset class returns and that too, with lower volatility, thereby underlining the importance of asset class diversification.

Let’s consider growth of an investment of Rs 1,00,000 from 1st April 1998 to 31st August 2020, along with the volatility of returns over that period

Source:-Bloomberg. Data for last 22 fiscal years. Apr ‘98 to Aug’ 20. Data used for asset classes :Equity -NIFTY50, 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 invests in gold related instruments 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 consult their financial advisors /tax advisors before investing.

However, could you have got a better deal foryour investments ?

Chart 1

9.7

6.5

11.920.2%

4.9%

14.7%

0%

5%

10%

15%

20%

25%

6

7

8

9

10

11

12

13

14

Equity Debt Gold

Vo

lati

lity

%

Inve

stm

en

t V

alu

e (R

s L

akh

s)

Investment Value (Rs Lakhs) (LHS) Volatility % (RHS)

Outcome of the investment over ~2 decades?

Individual Asset Classes

Chart 2

0%

5%

10%

15%

20%

25%

6

7

8

9

10

11

12

13

14

Vo

lati

lity

%

Inve

stm

en

t V

alu

e (R

s L

akh

s)

Investment Value (Rs Lakhs) (LHS) Volatility % (RHS)

10.7

12.1

10.913.3% 13.5%

16.2%

65E+25D+10G 65E+10D+25G 80E+10D+10G

Asset Allocation

17

Why Multi Asset Fund ?

Investors exhibit a recency bias and invest in recent outperformers

Lack of diversification leads to higher volatility of returns

Asset class returns vary over economic cycles

Timing the market for various asset classes is difficult

01 02

03 04

Multi Asset Fund could be considered as an option to meet diversified asset allocation needs of investors.

Combining negatively correlated/ less correlated asset classes reduces portfolio risk

05 06

You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold- Ray Dalio

PresentingHDFC Multi-Asset Fund

19


HDFC Multi-Asset Fund aims to generate long term capital appreciation/income by investing in a diversified portfolio of equity & equity related instruments, debt & money market instruments and Gold Related instruments.

Erstwhile HDFC Multiple Yield Fund-Plan 2005. Effective May 23, 2018 the fundamental attributes of the Scheme have been modified and the Scheme has been renamed HDFC Multi Asset Fund and shall follow the investment strategy mentioned on Page Number 20. Please refer to the Addendum dated April 12, 2018 available on our website / at our ISCs for details on the changes. For detailed asset allocation as per scheme information document.

Gold Relatedinstruments

Hedge against market uncertainties and inflation

Allocation: 10%-30% of total assets

Long term GrowthAllocation:

65%-80% of total assetsEnsuring tax efficiency of

equity schemes

Debt

Stability to portfolio

Allocation :

10%-30% of total assets


Equity

HDFC Multi Asset Fund : Current Investment Strategy

20

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.

Equity Strategy

Diversified Portfolio.

Dominant businesses with strong balance sheets

Gold Related Instruments Strategy

Can invest in Gold ETFs and Sovereign Gold Bonds

Debt Strategy

Investment in Debt securities (including securitized debt) and money market instruments Maturity profile depends on interest rate outlook

21

As of 31st August 2020 Source MFI Explorer*Includes cash, cash equivalents and net current assetsThe current investment strategy is subject to change depending on the market conditions. For complete portfolio, please refer our website www.hdfcfund.com

As of 31st August 2020, portfolio had unhedged equity exposure of ~65% of Net Assets. Exposure to Gold ETF and Debt was 16% and 19%* of Net Assets respectively

Asset Allocation

65

Equity Gold ETF Debt *

% o

f N

et A

sset

s

0

10

20

30

40

50

60

70

1619

Asset Allocation (% of Net Assets)

As of 31st August 2020. GICS Sectors. Scheme Benchmark is 90% NIFTY 50 Hybrid Composite. Debt 65:35 Index +10% Domestic Price of Gold. The NIFTY 50 Hybrid Composite Debt 65:35 Index is designed to measure the performance of hybrid portfolio having 65% exposure to NIFTY 50 and 35% exposure to NIFTY Composite Debt Index. Consequently Equity exposure of HDFC Multi Asset Fund has been rebased to 100% and compared with NIFTY 50 for above comparison. 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. For complete portfolio, please refer our website www.hdfcfund.com

22

Sector-Wise Overweight/Underweight

4.2

1.6 1.4 1.30.4 0.2

(0.6)(1.4)

(2.4)

(4.7)-6

-5

-4

-3

-2

-1

0

1

2

3

4

5

% o

f N

et

Ass

ets

OW/(UW) % of Net Assets

ConsumerStaples

CommunicationServices

ConsumerDiscretionary

Utilities Industrials Materials HealthCare

Energy FinancialsInformationTechnology

23

Large/Mid/Small Cap breakup

83

8 9

0

10

20

30

40

50

60

70

80

90

Large Cap Mid Cap Small Cap

% o

f N

et

Ass

ets

Market Cap breakup

As of 31st August 2020. Source MFI ExplorerEquity exposure of the Scheme rebased to 100% for computation of Large/Mid/Small Cap breakupThe current portfolio and strategy is based on current market conditions and is subject to change

The Scheme currently has a Large Cap bias

As of Aug’20, the Scheme has ~80% of its equity assets in Large Cap companies

01

02

24

Portfolio Statistics

Data is As of 31st August 2020For complete portfolio, please refer www.hdfcfund.comSource MFI Explorer.£ SponsorThe 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 .

Top 10 Equity Holdings (Aug’ 20) Portfolio Statistics

Rating Classification of debt component (% of Net Assets)

Reliance Industries Ltd.

HDFC Bank Ltd.

Infosys Limited

ICICI Bank Ltd.

Housing Development Fin. Corp. Ltd.£

Bharti Airtel Ltd.

Hindustan Unilever Ltd.

SBI Cards and Payment Services Ltd

ITC Ltd.

Tata Consumer Products Limited

7.71

6.84

6.03

5.66

3.75

3.17

2.66

1.85

1.76

1.54

Company Name % to NAV Top 5 Holding % (Equity)

Top 10 Holding %. (Equity)

AUM (₹ Cr.)

Portfolio Turnover Ratio (Last 1 Year)

29.99%

40.97%

288.91

50.46%

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

AA/AA-

A+ and below

Cash, Cash Equivalents and Net Current Assets

5.76%

5.01%

1.73%

6.74%

25

Fund Facts

90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold

An open ended scheme investing in equity and equity related instruments, debt and money market instruments and gold related instrumentsType of Scheme

Inception Date(Date of allotment)

Investment Objective

Plans

Options

Load Structure

Benchmark Index

Minimum Application Amount(Under Each Plan/Option)

Fund Manager $

August 17, 2005

The objective of the scheme is to generate long term capital appreciation/income by investing in a diversified portfolio of equity and equity related instruments, debt and money market instruments and Gold related instruments

Direct PlanRegular Plan

Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.

Purchase: Rs 5,000 and any amount thereafterAdditional Purchase: Rs 1,000 and any amount thereafter

Mr. Amit Ganatra (Equities), Mr Anil Bamboli (Debt), Mr Krishan Kumar Daga (Gold Related instruments) , Mr Arun Agarwal (Arbitrage), Dedicated Fund Manager for Overseas Investments: Mr Chirag Dagli

Entry Load

Exit Load

In respect of each purchase / switch-in of Units, 15% of the units (“the limit”) may be redeemed 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 12 months from the date of allotment.

No Exit Load is payable if units are redeemed / switched out after 12 months from the date of allotment.

Not Applicable.

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.

26

Asset Allocation

Under normal circumstance, the asset allocation of the scheme’s portfolio will be as follows

Type of InstrumentsEquity and equity related instruments

Debt Securities (including securitized debt)and money market instruments

Gold related instruments*

Units issued by REITs and InvITs Non-convertible preference shares

65

10

10

0

0

80

30

30

10

10

Type of InstrumentsMinimum Allocation(% of Total Assets)

Maximum Allocation(% of Total Assets)

Risk Profile of the Instrument

* Includes Gold ETFs and other Gold related instruments^ which may be permitted by Regulator from time to time. ^ The Scheme may invest in Gold Monetization Scheme of banks notified by RBI as per SEBI vide Circular No. CIR/IMD/DF/11/2015 dated December 31, 2015 subject to the guidelines provided by SEBI, which may be amended from time to time.The Scheme may invest up to 100% of its total assets in Derivatives.The Scheme may invest up to 50% of its total assets in foreign securities. For complete details, please refer to our website www.hdfcfund.com

High

Low to Medium

Medium to High

Medium to High

Low to Medium

27

Performance Disclosure

Performance of HDFC Multi Asset Fund – Regular Plan – Growth Option

Value of `10,000 invested

Scheme PeriodReturns (%)

Benchmark Returns (%) # Benchmark

Returns (%) ##Scheme

(`)Benchmark

(`)# Benchmark (`)##

Last 1 year 10,431

11,915

15,214

57,073

Last 3 years

Last 5 yearsSince Inception

13.92

6.04

7.24

8.80

10.71

8.95

9.99

N.A.

4.31

6.01

8.75

12.27

11,392

11,925

14,190

35,563

11,071

12,936

16,108

N.A.

Performance Summary of other schemes managed by Mr. Amit Ganatra, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 6 schemes, which have completed 1 year)

Scheme

Managing schemesince

Last 1 year (%)

Last 3 years (%)

Last 5 years (%)

May 21, 2020 7.54

8.25

0.10

5.40

-1.26

5.40

-7.93

4.31

-11.83

4.31

3.99

7.52

0.09

3.72

-2.15

3.72

-3.65

6.01

-5.54

6.01

7.71

9.32

6.21

8.32

4.48

8.32

N.A.

N.A.

N.A.

N.A.

Benchmark - NIFTY 50 Hybrid Composite Debt 65:35 Index

May 21, 2020

HDFC Dynamic PE Ratio Fund of Funds^

Benchmark – NIFTY 500 Total Returns Index

August 24, 2020

May 21, 2020

May 21, 2020

HDFC TaxSaver

HDFC Capital Builder Value Fund


HDFC EOF - II - 1126D May 2017 (1)Benchmark - NIFTY 50 Total Returns Index

HDFC EOF - II - 1100D June 2017 (1)Benchmark - NIFTY 50 Total Returns Index

# 90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold. ## NIFTY 50 (Total Returns Index). Past performance may or may not be sustained in the future. Returns greater than 1-year period are compounded annualized (CAGR). Performance of dividend option under the schemes for the investors would be net of distribution tax, if any. N.A. Not Available. The Scheme formerly, a debt oriented hybrid fund, has undergone change in Fundamental attributes w.e.f. May 23, 2018 and become a multi asset fund investing in equities, debt and gold related instruments. Accordingly, the Scheme’s benchmark has also changed. Hence, the performance of the Scheme from inception till May 22, 2018 may not strictly be comparable with those of the new benchmark and the additional benchmark. Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of hybrid nature of the scheme where a portion of scheme’s investments are made in debt instruments and gold related instruments. 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. Load is not taken into consideration for computation of performance. The scheme is co-managed by Mr. Amit Ganatra (Equities) since June 12, 2020, Mr. Anil Bamboli (Debt) since August 17, 2005, Mr. Krishan Kumar Daga (Gold) since May 23, 2018 and Mr. Arun Agarwal (Arbitrage) since August 24, 2020. NAV as on August 31, 2020: Rs. 35.563

Past performance may or may not be sustained in the future. Returns greater than 1-year period are compounded annualized (CAGR). Performance of dividend option under the schemes for the investors would be net of distribution tax, if any. N.A. Not Available. ̂ The scheme is co-managed by Mr. Amit Ganatra from May 21, 2020 & Mr. Anil Bamboli from June 28, 2014. On account of difference in type of scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. Performance of close-ended Schemes is not strictly comparable with that of open-ended schemes since the investment strategy for close-ended schemes is primarily buy andhold whereas open ended schemes are actively managed. 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. Load is not taken into consideration for computation of performance. The above returns are of Regular Plan - Growth Option as on August 31, 2020.

Scheme


Last 1 year (%)

Last 3 years (%)

Last 5 years (%)

June 25, 2010 10.64

10.20

10.32

10.11

6.95

6.84

8.57

8.26

8.16

7.70

N.A.

N.A.

8.58

8.48

8.69

8.12

N.A.

N.A.

Benchmark - CRISIL Short-Term Bond Fund Index.

March 26, 2014

HDFC Short Term Debt Fund

Benchmark – NIFTY Banking & PSU Debt Index

September 25, 2018HDFC Ultra Short Term Fund

HDFC Banking & PSU Debt Fund

Benchmark – CRISIL Ultra Short Term Debt Index

Performance of Top 3 schemes managed by Mr. Anil Bamboli, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 35 schemes, which have completed 1 year)

Performance of Bottom 3 schemes managed by Mr. Anil Bamboli, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 35 schemes, which have completed 1 year)

Scheme


Last 1 year (%)

Last 3 years (%)

Last 5 years (%)

June 28, 2014 10.64

10.20

10.32

10.11

6.95

6.84

8.57

8.26

8.16

7.70

N.A.

N.A.

8.58

8.48

8.69

8.12

N.A.

N.A.

Benchmark - NIFTY 50 Hybrid Composite Debt 65:35 Index

October 24, 2018

HDFC Dynamic PE Ratio Fund of Funds^

Benchmark - CRISIL Composite Bond Fund Index

May 10, 2018HDFC FMP 1146D April 2018 (1) (40)

HDFC FMP 1344D October 2018 (1) (43)

Benchmark - CRISIL Composite Bond Fund Index

Past performance may or may not be sustained in the future. Returns greater than 1-year period are compounded annualized (CAGR). Performance of dividend option under the schemes for the investors would be net of distribution tax, if any. N.A. Not Available. ̂ The scheme is co-managed by Mr. Amit Ganatra from May 21, 2020 & Mr. Anil Bamboli from June 28, 2014. On account of difference in type of scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the basis of since inception returns vis-à-vis the benchmark. In case the benchmark is not available on the Scheme’s inception date, the returns for the concerned scheme is considered from the date the benchmark is available. 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. 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. Load is not taken into consideration for computation of performance. The above returns are of Regular Plan - Growth Option as on August 31, 2020.

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Performance Disclosure

Performance of Top 3 schemes managed by Mr. Krishan Kumar Daga, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 9 schemes, which have completed 1 year)

Scheme


Last 1 year (%)

Last 3 years (%)

September 10, 2015 4.15

2.98

2.88

6.60

4.41

4.58

5.27

4.65

3.20

6.62

7.95

8.03

Last 5 years (%)

5.66

5.06

7.45

7.55

N.A.

N.A.

Benchmark - NIFTY 50 Arbitrage IndexJanuary 8, 2016

HDFC Arbitrage Fund#

Benchmark – 40% NIFTY 50 Arbitrage Index + 30% CRISIL Short Term Bond Fund Index + 30% NIFTY 50 Total Returns Index

December 9, 2015HDFC SENSEX ETF@

HDFC Equity Savings Fund^

Benchmark – S&P BSE SENSEX Total Returns Index

Performance of Top 3 schemes managed by Mr. Arun Agarwal, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 7 schemes, which have completed 1 year)

Scheme


Last 1 year (%)

Last 3 years (%)

August 24, 2020 4.15

2.98

2.88

6.60

4.41

4.58

5.27

4.65

3.20

6.62

7.95

8.03

5.66

5.06

7.45

7.55

N.A.

N.A.

Last 5 years (%)

Benchmark - NIFTY 50 Arbitrage IndexAugust 24, 2020

HDFC Arbitrage Fund $

Benchmark – 40% NIFTY 50 Arbitrage Index + 30% CRISIL Short Term Bond Fund Index + 30% NIFTY 50 Total Returns Index

August 24, 2020HDFC SENSEX ETF

HDFC Equity Savings Fund*


Performance of Bottom 3 schemes managed by Mr. Krishan Kumar Daga, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 9 schemes, which have completed 1 year)

Scheme


Last 1 year (%)

Last 3 years (%)

Last 5 years (%)

October 19, 2015 Benchmark - Domestic Price of Physical Gold

October 19, 2015

HDFC Gold Fund


October 19, 2015HDFC INDEX FUND - SENSEX Plan~

HDFC Index Fund - NIFTY 50 Plan~


Past performance may or may not be sustained in the future. Returns greater than 1-year period are compounded annualized (CAGR). Performance of dividend option under the schemes for the investors would be net of distribution tax, if any. N.A. Not Available. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the basis of since inception returns vis-à-vis the benchmark. In case the benchmark is not available on the Scheme’s inception date, the returns for the concerned scheme is considered from the date the benchmark is available. #The scheme is co-managed by Krishan Kumar Daga since September 10, 2015 and Arun Agarwal since August 24, 2020. ^The scheme is co-managed by Gopal Agrawal (Equities) since July 16, 2020, Krishan Kumar Daga (Arbitrage) since January 08, 2016, Arun Agarwal (Arbitrage) since August 24, 2020 and Anil Bamboli (Debt) since September 17, 2004. @The scheme is co-managed by Krishan Kumar Daga since December 09, 2015And Arun Agarwal since August 24, 2020. ~The scheme is co-managed by Krishan Kumar Daga since October 19, 2015 and Arun Agarwal since August 24, 2020. On account of difference in type of scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. 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. Load is not taken into consideration for computation of performance. The above returns are of Regular Plan - Growth Option as on August 31, 2020.

33.5331.503.364.313.714.58

19.3020.805.436.017.408.03

12.8614.628.138.758.869.38

Performance of Bottom 3 schemes managed by Mr. Arun Agarwal, Co-Fund Manager of HDFC Multi Asset Fund – Regular Plan (who manages total 7 schemes, which have completed 1 year)

Scheme


Last 1 year (%)

Last 3 years (%)

Last 5 years (%)

August 24, 2020 Benchmark – NIFTY 50 Total Returns Index

August 24, 2020

HDFC NIFTY 50 ETF


August 24, 2020HDFC INDEX FUND - SENSEX PLAN”

HDFC Index Fund - NIFTY 50 Plan”


Past performance may or may not be sustained in the future. Returns greater than 1-year period are compounded annualized (CAGR). Performance of dividend option under the schemes for the investors would be net of distribution tax, if any. N.A. Not Available. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the basis of since inception returns vis-à-vis the benchmark. In case the benchmark is not available on the Scheme’s inception date, the returns for the concerned scheme is considered from the date the benchmark is available. $The scheme is co-managed by Krishan Kumar Daga since September 10, 2015 and Arun Agarwal since August 24, 2020. +The scheme is co-managed by Krishan Kumar Daga since December 09, 2015 and Arun Agarwal since August 24, 2020. ”The scheme is co-managed by Krishan Kumar Daga since October 19, 2015 and Arun Agarwal since August 24, 2020. *The scheme is co-managed by Gopal Agrawal (Equities) since July 16, 2020, Krishan Kumar Daga (Arbitrage) since January 08, 2016, Arun Agarwal (Arbitrage) since August 24, 2020 and Anil Bamboli (Debt) since September 17, 2004. On account of difference in type of scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. 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. Load is not taken into consideration for computation of performance. The above returns are of Regular Plan - Growth Option as on August 31, 2020.

3.944.313.364.313.714.58

5.866.015.436.017.408.03

N.A.N.A.8.138.758.869.38

+

+

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

Disclaimer & Risk Factors

This presentation dated 6th October 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 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 invest-ment strategy. The statements contained herein may include statements of future expectations and other forward-looking statements that are 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. Stocks/Sectors referred in the presentation are illustrative and should not be construed as an investment advice or a research report or a recommendation 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 any returns 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 nor 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.

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