SALES

HANDBOOK
for Partners
 PREFACE

Knowledge empowers an individual. A famous quote of Albert Einstein goes like

“Everything I know is but a drop in the ocean of knowledge” underscores the fact that
what we know is only a tiny bit in a vast ocean. As far as knowledge is concerned with
respect to mutual fund industry, a lot has been done in the direction of investor
education by the industry participants.

The distribution community has been playing an important role in raising awareness
amongst investors. On this front, we believe, it would help make the conversation more
meaningful if we get empirical data to reinforce our message to give the big picture. This
handbook ventures into the area of financial knowledge and attempts to add another
drop in the vast ocean of knowledge.

This handbook is also a testament of our gratitude to the unflinching support we receive
from our esteemed partners through thick and thin of market cycles. We believe, this
book will create an impact in easing out the complexities surrounding investing and
sincerely hope, that this work forms part of your folder, every time, when you walk out for
that important meeting.

Happy Investing!

2
INDEX
Why Mutual Funds? 4
Why Invest In Equities? 5,6
Understanding Markets 7
Decadal Growth Rates Of India 8
Power Of Compounding 9, 10
Difficulty In Timing The Market 11
Understanding Inflation 12
Real Returns In Fixed Deposits 13
Guidelines For New Earners 14
Small Sacrifices Can Make A Huge Difference! 15
SIP vs SIP Top Up 16
Starting Early And Cost Of Delay 17
Repay Your Home Loan Smartly 18, 19
SIP And SIP Top Up Ready Reckoner 20, 21
Guidelines For A Married Investor With Kids 22
ELSS – Comparison With Other Investments Eligible For Tax Deductions 23
Traditional Tax Saving Avenues v/s ELSS (Category Average) 24
Asset Allocation 25, 26
Equity Allocation And Risk Appetite 27
Equity Schemes - Our Offerings 27
Hybrid Schemes – Our Offerings 28
Equity And Debt Cycles 29
Guidelines For An Investor At Pre-Retirement Stage 30
SWP vs Dividends 30
SWP 31, 32, 33
Debt Schemes – Our Offerings 34
Comparison - Liquid Funds vs Savings Account 34
How To Mitigate Risk In A Portfolio? 35
Tax Reckoner 36, 37
Product Labeling 40, 41, 42, 43

3
Investing in various asset classes like Gold, Debt and Equity with the help
of mutual funds can help eliminate many drawbacks of investing through
other routes.

Asset Classes
Gold Debt Equity
Routes of Physical Gold/ Fixed Deposits/ Direct Equity
investment Gold Bonds Corporate Bonds

Drawbacks Physical Gold – Medium to Low Requires time and

Safety and purity liquidity expertise

Gold Bonds – Inefficient taxation Relatively riskier

Buying limits, lock-in in FDs
of 5 years, low
liquidity Penalty for premature
withdrawal

Here’s how mutual fund route can help overcome the above drawbacks

Mutual Gold Exchange Debt Mutual Fund Equity Mutual Fund

Fund Route Traded Fund (ETF) &
Gold Fund

Benefits of Buying limits – Different schemes Professional

investing in Min.1 unit through for different management
mutual funds stock exchange and investment horizon
no upper limit Diversification/robust
High liquidity risk management
High liquidity
Tax efficient returns High liquidity
No lock-in if held for 3 years
and above

Questions on every investor’s mind -

• What are the different avenues for investing?
• What are the drawbacks in different investing avenues?
• How are equity mutual funds better than direct stocks?
• How can mutual funds overcome these drawbacks?

4
It is normally seen that entrepreneurs create
wealth for themselves and their shareholders
by running good, growing businesses.

How can a common man benefit from these

business stalwarts?

By either starting a business (which may not

be as easy to scale up)
Or, by investing in an established growing
business

Long Term Wealth Creation

Investing in stock markets could help you create
wealth over the long term

Become a Part-Owner
When you buy a stock of a company, you become a
part owner and make money as the company’s
profit increases

Real Returns
Investing in equities helps you beat inflation as it
generates positive real returns over the long term
E.g. Let us assume the rate of return on an investment is 12% and inflation is 4%.
The real return in this case is 8% (12% - 4%).

"How many millionaires do you know who have become

wealthy by investing in savings accounts? I rest my case."
- Robert G. Allen

5
 EQUITIES –
A long term asset for wealth creation
Equity markets do not move up in a linear fashion. Various news and events, both
domestic and global, drive the market in the short run. However, in the long term,
returns are in line with the growth of the underlying economy.
As shown in Chart 1 below, markets have given positive returns in some years and
negative in others. However, if you observe Chart 2, in the long term S&P BSE
SENSEX has delivered 15.95% CAGR between Mar’79 and Dec’18; which is almost
9% higher than the average inflation rate during that period.

Chart 1

Equity returns

81%
74%
67%

42%

24% 27%
15% 18% 19%
12% 11% 10%
7%

-3% -2%
-13% -9% -9%
-25%
-36%

FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Asian crisis Ketan General elections Sub-prime crisis Euro Crisis Demonetization &
Parekh Scam US Elections

Chart 2

Equity 15.95%
(S&P BSE SENSEX)
Despite the risk and volatility in
Gold 10.11%
the short term, over the long
term, equity as an asset class has
Bank FD 8.30%
outperformed others.
7.02%
It has beaten inflation by the
Avg Inflation^
highest margin.
0% 5% 10% 15% 20%

Questions on every investor’s mind -

Why are equities volatile?
Have equities given positive real returns over the long run?
How have equities performed compared to other asset classes?

CAGR – Compounded Annual Growth Rate

Returns for Chart 2 are considered from March 31, 1979 to December 31, 2018
Source: Bloomberg, RBI Handbook of statistics on Indian Economy, MFI, World Gold Council. ^Average inflation is shown for
comparison with returns from various asset classes. As TRI data is not available since Mar 31, 1979 the performance is
calculated using composite CAGR of S&P BSE SENSEX PRI values from Mar 31, 1979 to Aug 18, 1996 and TRI values since
Aug 19, 1996. Returns from above asset classes are not strictly comparable due to different risks faced by each asset class.
Above chart is for illustrative purpose only. Past performance may or may not be sustained in the future.

6
Understanding MARKETS
ROLLING 1 YR ROLLING 3 YR ROLLING 5 YR ROLLING 10 YR ROLLING 15 YR ROLLING 20 YR
YEAR END (1) SENSEX (2) GROWTH (3) GROWTH (4) GROWTH (5) GROWTH (6) GROWTH (7) GROWTH (8)
Mar-79 100
Mar-80 129 29%
Mar-81 173 35%
Mar-82 218 26% 30%
Mar-83 212 -3% 18%
Mar-84 245 16% 12% 20%
Mar-85 354 44% 18% 22%
Mar-86 574 62% 39% 27%
Mar-87 510 -11% 28% 19%
Mar-88 398 -22% 4% 13%
Mar-89 714 79% 8% 24% 22%
Mar-90 781 9% 15% 17% 20%
Mar-91 1168 50% 43% 15% 21%
Mar-92 4285 267% 82% 53% 35%
Mar-93 2281 -47% 43% 42% 27%
Mar-94 3779 66% 48% 40% 31% 27%
Mar-95 3261 -14% -9% 33% 25% 24%
Mar-96 3367 3% 14% 24% 19% 22%
Mar-97 3361 0% -4% -5% 21% 20%
Mar-98 3893 16% 6% 11% 26% 21%
Mar-99 3740 -4% 4% 0% 18% 20% 20%
Mar-00 5001 34% 14% 9% 20% 19% 20%
Mar-01 3604 -28% -3% 1% 12% 13% 16%
Mar-02 3469 -4% -2% 1% -2% 14% 15%
Mar-03 3049 -12% -15% -5% 3% 15% 14%
Mar-04 5591 83% 16% 8% 4% 15% 17%
Mar-05 6493 16% 23% 5% 7% 15% 16%
Mar-06 11280 74% 55% 26% 13% 16% 16%
Mar-07 13072 16% 33% 30% 15% 8% 18%
Mar-08 15644 20% 34% 39% 15% 14% 20%
Mar-09 9709 -38% -5% 12% 10% 6% 14%
Mar-10 17528 81% 10% 22% 13% 12% 17%
Mar-11 19445 11% 8% 12% 18% 12% 15%
Mar-12 17404 -10% 21% 6% 18% 12% 7%
Mar-13 18836 8% 2% 4% 20% 11% 11%
Mar-14 22386 19% 5% 18% 15% 13% 9%
Mar-15 27957 25% 17% 10% 16% 12% 11%
Mar-16 25342 -9% 10% 5% 8% 14% 11%
Mar-17 29621 17% 10% 11% 9% 15% 11%
Mar-18 32969 11% 6% 12% 8% 17% 11%
Probability 26/39 31/37 32/35 29/30 25/25 20/20
Of Gain

Markets are volatile in the short term.

As the investment horizon increases, probability of loss reduces. E.g. the table shows that, in the last 39 years of SENSEX,
the likelihood of losing money for periods of 15 years or more has been NIL.
From Mar 1979 to Dec 2018, markets have given a CAGR of 15.95%. Equity returns have been more than the nominal GDP.
SENSEX has compounded wealth at 15.95% over the long run. At this rate, an investment in the stock market has
historically doubled approximately every 4 to 4.5 years.

Questions on every investor’s mind -

Are equity markets volatile in the short term?
What is the probability of gain from equities in the long run?

Past performance may or may not be sustained in the future. The above is just an illustration. SENSEX returns are
computed for 1 ,3, 5, 10, 15 & 20 years from the date of investment. Source: BSE Ltd, Returns for 1 year are absolute and
above 1 year CAGR. CAGR – Compounded Annual Growth Rate: The rate at which an investment grows annually over a
specified period of time. Column 2: shows the value of S&P BSE SENSEX at the end of month of the respective period.
Probability of gains is the number of times the investor would have made positive returns. Column 3 to 8: Represents
the return earned on the investment for the referred period. For e.g. If you invested in Mar-79 when SENSEX Index was
100, then 1 year returns (in Mar-80) would have been 29%, 3 years returns (in Mar-82) would have been 30%, 5 years
returns (in Mar-84) would have been 20%, 10 year returns (in Mar-89) would have been 22%, 15 year returns (in Mar-94)
would have been 27%, and 20 year returns (in Mar-99) would have been 20%.

7
Decadal GROWTH
RATES of India
16.0
14.2 14.7 13.8
13.9
14.0
12.0
6.4 7.0
10.0 8.6 9.1

8.0
6.0
4.0 7.5 6.8
5.6 5.6
2.0
-
CY: 1981-1990 CY: 1991-2000 CY: 2001-2010 CY: 2011-2017

Decadal Real GDP Growth Inflation

1981-90 1991-00 2001-10 2011-18

• Indira Gandhi Assassination • Global Oil Crisis - Gulf War • Violence in Gujarat post Godhra • Coal, 2G etc, scandals
• Rajiv Gandhi Government • BoP Crisis, Reforms commence • 9/11, Dotcom Bubble • QE Tapering, PIGS, Greece
• Birth of IT Industry • Asian Crisis, Era of coalitions • Growth of Indian Generics Cos. • High FD & CAD, high inflation
• Rise of BJP in Indian Politics • 1st BJP govt., Kargil Conflict • 10 year Congress rule • BJP Government with full majority
• Advent of TV, Maruti Car • Growth of IT, Satellite TV, Mobiles • Lehmann Crisis, QE • Demonetisation, GST,
Make in India
• Crude Oil
• Currency Crisis
• Rate hike by Fed
The graph depicts the growth of the Indian economy over the past decades.
The nominal growth of the economy (real growth plus inflation) is a good proxy
for the average growth in businesses of a country.

Equities over time grow in line with the growth of underlying businesses/economy.
This is evident in the fact that the Indian economy has grown at a nominal growth
of ~ 14% p.a., while SENSEX has grown at a CAGR of 15.95% which is more than the
nominal GDP growth.

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take
$800 and go to Las Vegas." - Paul Samuelson

Source: World Bank; CAGR – Compounded Annual Growth Rate, GDP - Gross Domestic Product

8
How big an impact can power of
compounding have?
If you want to walk towards the moon, and start with 1 step on the first day and double
the steps every day, How long do you think it will take to reach the moon? 2 years? 20?
Let’s find out!

Within 31 days, you will cover over 6.5 lakh km. and cross the moon.
Yes, it will just take 31 days.

But what if you delay by 15 days? You will cover only 10 km.

That’s the Power of Compounding.

POWER OF COMPOUNDING –
can make a huge difference to your wealth
The graph depicts how much an amount of ₹25,000 would grow to
if invested each year, at various rates of return across time.

8% 12% 16%
1,80,00,000.00
1,60,00,000.00 ₹1.53cr
1,40,00,000.00
1,20,00,000.00
1,00,00,000.00
80,00,000.00 ₹0.67cr
60,00,000.00
40,00,000.00 ₹0.30cr
20,00,000.00
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Assumptions: Asset Class 1 returns: 8%; Asset Class 2 returns: 12%; Asset Class 3 returns: 16%

The difference in the rate of returns between Asset class 3 and 2 is only 4%. However,
when invested over the long term, the difference in terms of value is huge.
E.g., at the end of 30 years the amount of money accumulated from Asset Class 2 is just
₹67 Lakhs, while that of Asset Class 3 is more than double - ₹1.53 Crore.

Questions on every investor’s mind.

Does 1% or 2% difference in returns really make a huge difference in the long term?

Disclaimer: This is just an illustration with assumed rates to explain the power of compounding.
Returns are neither indicative nor guaranteed.

9
POWER OF
COMPOUNDING –
How it works
Let's see how much money can be accumulated through an SIP investment of ₹1000/month.

Tenure Investment Amount (in ₹) Appreciation (in ₹) Market Value (in ₹)

3 years 36,000 7,508 43,508
5 years 60,000 22,487 82,487
10 years 1,20,000 1,12,340 2,32,340
15 years 1,80,000 3,24,576 5,04,576
20 years 2,40,000 7,59,148 9,99,148
25 years 3,00,000 15,97,636 18,97,636

20,00,000
18,00,000
Appreciation Investment Amount
16,00,000
(in ₹) (in ₹)
14,00,000
12,00,000
10,00,000
8,00,000
6,00,000
4,00,000
2,00,000
0
3 years 5 years 10 years 15 years 20 years 25 years

Assuming an SIP amount of ₹1000 growing at 12% CAGR. This is just an illustration with assumed rates to explain the power of compounding.

It is evident from the graph that as the number of years increase, the money compounds
at a much higher rate.
Even though the original investment is very low, the capital appreciation is much higher.

This is the Power of Compounding.

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't
... pays it. - Albert Einstein

SIP - Systematic Investment Plan

10
Difficulty in
TIMING THE MARKET

CAGR
15% 14.11%

12%
10.23%

9% 7.61%

5.42%
6%
3.64%
3%

0%
All days Missed 10 Missed 20 Missed 30 Missed 40
invested best days best days best days best days

Daily returns from January 1, 1990 to December 31, 2018

Source: Internal calculations based on data procured from www.bseindia.com

The above chart shows that if you had stayed fully invested in stocks (as measured by the
S&P BSE Sensex) from January 1, 1990 to December 31, 2018, you would have earned
compounded annual returns of 14.11%.

However, if you had tried to time the ups and downs of the market, you would have risked
missing out on days that registered some of the biggest gains, and the CAGR would have
dropped drastically: 10.23% if you missed 10 best days, 7.61% if you missed 20 best
days, 5.42% if you missed 30 best days and 3.64% if you missed 40 best days during
this period.

"It's not how much money you make, but how much money you keep, how hard it works for you, and
how many generations you keep it for." - Robert Kiyosaki

Best days means the days on which the markets have given highest returns.
Daily returns are considered for determining best days.

11
UNDERSTANDING
INFLATION
Inflation erodes purchasing power of money
120.00
100.00 100.00

80.00
60.00
Value at
40.00 the end of
30 years
20.00 11.34
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Real Value of ₹100 will become ₹11.34 in 30 years at inflation of 7% p.a.

1990 2018
80
70
60
50
40
30
20
10
0
1 Litre of Petrol 1 Litre of Milk Atta (1 Kg in 1993)

Source: Petrol costs as on 15th November, 1990 and 31st December, 2018 in Mumbai - from Indian oil Corporation’s website. The price of milk is that
of the Mumbai metropolitan region as on 31st December, 2018. Atta prices as of 31st December, 2018 from a leading online distributor.

Inflation reduces your purchasing power.

Hence, today’s money will not buy you the same things tomorrow.
E.g. 1 Litre of milk which used to cost ₹6 in 1990, costs ₹46 today (2018).
Over the last 5 decades CPI Inflation in India has averaged at 7.96% per year.*
A few specific examples above show how small increases over time end up
increasing costs dramatically.

Investing in equities can help you beat inflation better than other asset
classes and provides positive real returns over the long term.#

Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of
groceries. Today, a five-year-old can do it. - Henny Youngman.

Questions on every investor’s mind -

How does inflation affect your day-to-day life?

CPI - Consumer Price Index

*Source: RBI;
#Investments must be tailored to investor’s individual situation and objectives and therefore, investors should consult
their financial advisors to ascertain whether the products are suitable for them.
12
Real Returns in
Fixed Deposits
(FDs)

The graph illustrates how much real returns

you can get by putting your money in FDs.

8.00 7.50
7.00

6.00

5.00 4.50
4.00

3.00 2.55

2.00

1.00 0.45
0.00
Interest Inflation Tax on Interest Real Return

Assuming a tax bracket of 30.9% and a FD Rate of 7.5%.

Even though FDs offer guaranteed returns, after deduction of inflation

and tax, the real returns amount to hardly 0.45% of your principal.

Equity mutual funds, on the other hand, have the potential to

beat inflation and give higher returns over the long term.*

Questions on every investor's mind -

Why should I not invest in a Fixed Deposit when it is giving me guaranteed returns?

* Long term capital gains upto ₹1 lakh p.a. are tax exempt. Long-term capital gains tax applicable for gains above
₹1 lakh p.a. at 10% + surcharge (as applicable) + 4% cess, if units are redeemed after a year, as per prevailing tax
laws, which are subject to change from time to time. In view of individual nature of tax consequences, please
consult your tax advisor.

13
Term Insurance
Buy a Term Insurance policy as the premium
is low when you are in your early 20s. Sum
assured should ideally be 10x of your initial
annual salary.
(Please consult your financial advisor before investing)

Tax Savings
Investors can save tax and create wealth by
investing in Equity Linked Savings Scheme
(ELSS) and Notified Retirement Funds.

SIP for Wealth Creation

Start an SIP when you are young as it is
rightly said that an early bird catches the
worm.

“Invest in yourself or no one else will.”

- Anonymous

SIP – Systematic Investment Plan

14
 Can you give up 1 cigarette per day?
Can you drink one pint of beer less over the weekend?
Can you spend less on movies / dinner?

A small sacrifice Skip 1 cigarette Skip 1 beer over Spend less on

per day i.e., 365 weekend i.e., 52 movies / dinner
cigarettes in a year beers over a year

Cost of 1 cigarette - Cost of 1 pint - Spend ₹1500 less

Cost ₹15 ₹200 on movies / dinner
every month

Amount Saved
5,475 10,400 18,000
per year (in ₹)

Invest the amount saved annually for next 35 years

Assumed Rate of
15% 15% 15%
Return (%)

Accumulated
amount at the end 55 Lakhs 1.05 Crore 1.82 Crore
of 35 years (in ₹)

“Do not save what is left after spending but spend what is left after saving.” - Warren Buffet

Returns are assumed only to show the power of compounding and neither guaranteed nor indicative of any mutual fund
scheme / other asset class.

15
 SIP vs SIP TOP UP
As per study done on behavioral finance by researchers
Shlomo Benartzi and Richard Thaler, it is difficult to convince
people to cut their spending now and save more, and instead
simply encourage them to save more tomorrow. You can read
about this concept in detail in the book Save More Tomorrow
by Shlomo Benartzi. This concept can be smartly used with
the help of SIP Top Up.

SIP
SIP per month ₹10,000
Assumed Rate of Return 12%
Period of Investment 30 Years
Total Amount Invested ₹36 Lakhs
Corpus at the end of 30 years ₹3.53 Crores

SIP Top Up
SIP per month ₹10,000, increased
by 10% per year

Assumed Rate of Return 12%

Period of Investment 30 Years
Total Amount Invested ₹1.97 Crore
Corpus at the end of 30 years ₹8.83 Crore

Topping up / increasing a ₹10,000 SIP by just 10% every

year increases the corpus at the end of 30 years by 150%.

Advantages of SIP Top Up

Adapt your investments / savings to your rising income levels

Reach your financial goals faster
Fight inflation
Ease of transacting on digital platforms

SIP - Systematic Investment Pan

Returns are assumed only to show the power of compounding and neither
guaranteed nor indicative of any mutual fund scheme / other asset class.

16
STARTING EARLY AND
COST OF DELAY
Mr. A started investing ₹10,000
every month at the age of 25; while
Mr. B started investing ₹15,000
every month at the age of 35. Both
invested ₹36 lakhs till the age of 55.
Mr. A Mr. B

Starts investing at the age of (in years) 25 35

Monthly SIP instalment (in ₹) 10,000 15,000

Assumed rate of return (p. a.) 15% 15%

Investment till the age of (in years) 55 55

Total Investment (₹ in Lakhs) 36 36

Accumulated value at the end (₹ in Crs) 7.01 2.27

At the end of the investment period, Mr. A’s investments grew to ₹7.01 Cr; while that of
Mr. B grew to ₹2.27 Cr - a difference of almost ₹5 Cr.
This is what starting to invest early in your life can do to your wealth.

Monthly Instalment required for

Mr. B to catch up with Mr. A
₹46,240

If Mr.B wants to accumulate similar wealth as Mr. A, he will have to invest ₹46,240 every
month, i.e. more than 4 times the monthly instalment amount of Mr. A.
So, start early and avoid the cost of delay.

Questions on every investor’s mind -

Why is starting to invest early so critical?
What will be the cost of delaying investment by few years?

This is only an illustration to explain the concept of power of compounding and

not indicative / assuring of returns by any asset class.

17
REPAY YOUR HOME
LOAN SMARTLY!!
Assume you have taken a home loan of ₹25 lakh at the rate of 9.60%^. The EMI payable
for 20 year period would be ₹23,467. However, if you extend the loan period to 30 years,
the same EMI would reduce to ₹21,204.
So rather than taking a shorter loan period, opt for 30 year loan period and start an SIP of
the differential amount i.e. ₹2,263 in an Equity Mutual Fund scheme of your choice.

Who is smarter at
repaying a home loan
of ₹25 Lakhs? Mr. X Mr. Y
Loan repayment term 20 years 30 years
EMI per month* (in ₹) 23,466.78 (A) 21,204.00 (B)
SIP per month (in ₹) - 2,262.78 (A-B)
After 17 years
Total EMI paid (in ₹) 47,87,222 43,25,616
Total SIP Investment NIL 4,61,606
Total Outflow 47,87,222 47,87,222
Principal outstanding (in ₹) 7,31,514 18,85,811
Total SIP Corpus (in ₹) #
- 21,27,253
SIP corpus left after paying 2,41,442
O/S principal (in ₹) (21,27,253 - 18,85,811)
#Assumed rate of return for SIP - 15% CAGR

Mr. X continues to pay his EMI till the end of the loan repayment term (for 3 more years).
while Mr. Y repays his loan from his returns from SIP.
Total savings of Mr. Y
EMI for remaining 3 years SIP corpus left after paying Total Savings (in ₹)
(in ₹) (A) O/S principal (in ₹) (B) (A+B)

8,44,804 (23,466.78 x 36) 2,41,442 10,86,246

Effects of taxation have not been considered in the above illustration.
*Calculation - https://www.hdfc.com/home-loan-emi-calculator. Calculations are for illustrative purposes only.
Mutual fund investments are subject to market risks and returns are not guaranteed or assured.
^9.60% is an assumed median floating rate of interest over the tenure of the loan. The actual rate of interest might move up or
down throughout the tenure of the loan due to the floating nature of interest rates, and thereby changing the overall calculations.

18
Alternatively, if you cannot opt
for a 30 year home loan due to
any reason, you can start an SIP
separately to recover the
interest on loan.

Principal (in ₹) 25,00,000

EMI (in ₹) 23,467*
Total EMI to be paid over 20 years (in ₹) 56,32,026
Hence, total interest to be paid (in ₹) 31,32,026

Start an SIP which is 0.1 % of loan amount

Minimum monthly SIP investment required (in ₹) 2,500

(which is 0.1% of the principal)

Total SIP investment over 20 years (in ₹) 6,00,000

Final value of SIP after 20 years (in ₹) 37,43,099#
Capital Appreciation (in ₹)
(greater than the interest component of home loan) 31,43,099

Effects of taxation have not been considered in the above illustration.

*Calculation - https://www.hdfc.com/home-loan-emi-calculator
#Assumed rate of return on the SIP - 15% p.a. Calculations are for illustrative purposes only.
Mutual fund investments are subject to market risks and returns are not guaranteed or assured.

19
SYSTEMATIC INVESTMENT PLAN -
Ready Reckoner

Monthly SIP amount based on assumed rate of return on investment and

corresponding tenure in years
^Example - To accumulate ₹1 Crore in 10 years time, a monthly SIP of ₹45,700 is required, if the assumed rate of return is 11% p.a.

All the above figures are rounded off to the nearest 100.

Estimated investment value (₹ in Lacs) based on assumed rate of return

on investment and corresponding tenure in years

*Example - A monthly SIP of ₹10,000 for 15 years will accumulate to ₹45.9 Lakhs, if the assumed rate of return is 11% p.a.
All the above figures are rounded off to the nearest Lac.

The above investment simulations, based on assumed rate of return(s) is for illustration purposes only and should not be
construed as a promise/forecast on minimum returns and safeguard of capital. Loads & expenses have not been considered
in the calculations. For the purpose of calculations, we have assumed monthly compounding convention for the tenure of the
SIP at the assumed rate of return.

20
SIP Top Up - Ready Reckoner
SIP with 10% annual Top Up

Monthly SIP amount (rounded off to the nearest 100s) based on assumed
rate of return on investment and corresponding tenure in years

*Illustration
Initial installment of ₹11,500 will increase over the tenure (say 5 years)
@10% p.a. (as illustrated alongside) to accumulate ₹10 Lacs in 5 years, if the
assumed rate of return is 7% p.a.

(Amount in Rs. Lakhs)

Estimated investment value (rounded off to the nearest 10,000s) based on assumed
rate of return on investment and corresponding tenure in years.
^Illustration
Initial installment of ₹1,000 will increase over the tenure (say 5 years) @10%
p.a. (as illustrated alongside) to accumulate ₹1 Lac in 5 years, if the assumed
rate of return is 11% p.a.
The above investment simulation, based on assumed rate of return(s) is for
illustration purposes only and should not be construed as a promise/forecast
on minimum returns and safeguard of capital. Loads & expenses have not
been considered in the calculations. For the purpose of calculations, we have
assumed monthly compounding convention for the tenure of the SIP at the
assumed rate of return.
SIP - Systematic Investment Plan

21
Guidelines for
a MARRIED
INVESTOR WITH
KIDS
Term Insurance and Mediclaim
Buy a Term Insurance policy that may help
the surviving family members in case of an
eventuality. Buy a Medical Floater Policy to
cover medical expenses for the entire
family.

Goal Based Investments through

Lumpsum or SIP
Start investing for your Children's
Education and your own Retirement
through Goal Based Funds. These funds
create wealth and also maintain discipline.
You should also consider Topping up your
existing SIPs.

Contingency fund
Invest a reasonable amount in Liquid fund
for any near-term contingencies (should
ideally be 3-4x of Monthly Income).

Ensure Disciplined Spending and

maintain Asset Allocation by diversifying
your investments.

SIP – Systematic Investment Plan

22
Equity Linked Savings Scheme (ELSS) –
Comparison with other investments eligible
for tax deductions

ELSS

Invests Lowest Tax efficient Deduction

primarily in lock-in period returns under Income-tax
equities of 3 years Act,1961

Investment Options Minimum Lock-in Returns Tax

under Sec 80C Investment (in ₹) years (%) Treatment

Public Provident Fund (PPF) 500 15 8% Interest

tax free
National Saving 100 5 8% Interest
Certificate (NSC) income taxable
Interest
Bank FD 1000 5 6.85% income taxable

Equity-Linked Saving Market Dividend and

500 3 capital gains
Scheme (ELSS) Linked taxed at 10%^

Past performance may or may not be sustained in the future. Returns are not assured or guaranteed. Information
herein is as per prevailing tax laws, which are subject to change. In view of individual nature of circumstances, please
consult your professional tax / financial advisors before taking any investment decisions.

^Plus applicable surcharge and cess. ₹1 lakh exemption available for capital gains.
Source: www.sbi.co.in, www.indiapost.gov.in, as on Date 3-Jan-2019.

23
Traditional
Tax Saving Avenues
v/s
ELSS (Category Average)
Let’s see how an annual investment of ₹10,000 in March every year
since 1996 would have performed till date.

Investment NIFTY 50 Investment Investment

Period Amount PPF Interest
value in ELSS
invested (₹) Rates Value in PPF @ TRI Level value in NIFTY 50
Ended (Category
Average)
Mar-96 10,000 12.00% 10,000 1,042 10,000 10,000
Mar-97 10,000 12.00% 21,200 1,024 19,827 19,058
Mar-98 10,000 12.00% 33,744 1,181 32,870 32,972
Mar-99 10,000 12.00% 47,793 1,140 41,727 63,339
Mar-00 10,000 12.00% 63,429 1,624 69,404 158,061
Mar-01 10,000 12.00% 80,309 1,230 62,603 101,465
Mar-02 10,000 12.00% 97,884 1,229 72,525 124,424
Mar-03 10,000 9.50% 116,589 1,085 74,008 129,599
Mar-04 10,000 9.50% 135,916 2,020 147,848 283,209
Mar-05 10,000 9.50% 156,790 2,370 183,421 437,353
Mar-06 10,000 8.50% 179,333 4,029 321,843 780,719
Mar-07 10,000 8.50% 203,680 4,606 377,942 798,380
Mar-08 10,000 8.50% 229,974 5,763 482,880 977,884
Mar-09 10,000 8.50% 258,372 3,721 321,747 613,922
Mar-10 10,000 8.50% 289,042 6,522 573,979 1,177,661
Mar-11 10,000 9.50% 322,165 7,328 654,942 1,284,542
Mar-12 10,000 8.60% 358,508 6,728 611,372 1,231,081
Mar-13 10,000 8.80% 400,057 7,315 674,699 1,331,852
Mar-14 10,000 8.70% 444,862 8,740 816,086 1,637,399
Mar-15 10,000 8.70% 493,565 11,202 1,055,982 2,437,492
Mar-16 10,000 8.70% 536,505 10,326 983,358 2,280,237
Mar-17 10,000 8.10% 590,963 12,407 1,191,562 2,865,381
Mar-18 10,000 7.60% 646,910 15,066 1,456,950 3,247,466

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do
things differently.” - Warren Buffet

ELSS - Equity Linked Savings Scheme

Past performance may or may not be sustained in the future.
The above simulation is for illustration purpose only. @ Year end balance has been arrived at by adding interest at the
rates notified by the Competent authorities from time to time. Unlike PPF , investments in Mutual Funds are subject to
market risks. Hence, the performances are not strictly comparable. As NIFTY 50 TRI data is not available since 31st March
1996, performance is calculated using composite CAGR of NIFTY 50 PRI values from Mar 29, 96 (Data for March 31, 96 is
not available) to Jun 29, 99 and TRI values since Jun 30, 99.

24
Asset Allocation –
Winners Rotate
Why diversification across asset classes is important?
You can see from table below, different asset classes have
performed differently in different financial years.

Returns Asset Class Rank

Fiscal Year Equity Debt Gold Equity Debt Gold

FY 1999 -3% 13% -2% 3 1 2

FY 2000 42% 19% 2% 1 2 3 Historical returns tend

FY 2001 -25% 13% 0% 3 1 2
to bias investors
towards the asset class
FY 2002 -2% 29% 22% 3 1 2 which has performed
FY 2003 -13% 17% 8% 3 1 2 well in the recent past.
FY 2004 81% 13% 16% 1 3 2
However, this recency
FY 2005 15% -5% 1% 1 3 2 bias could result in
FY 2006 67% 2% 39% 1 3 2
investors chasing
momentum and
FY 2007 12% 6% 11% 1 3 2 picking an asset class at
FY 2008 24% 8% 30% 2 3 1 an inopportune time.
FY 2009 -36% 10% 24% 3 2 1
Over the last 20 fiscal
FY 2010 74% 0% 8% 1 3 2 years, different asset
FY 2011 11% 5% 28% 2 3 1 classes like equity, debt
and gold have
FY 2012 -9% 3% 32% 3 2 1
outperformed each
FY 2013 7% 11% 3% 2 1 3 other at different times.
FY 2014 18% -1%
Hence, the rank 1 asset
-11% 1 2 3
class in terms of
FY 2015 27% 15% -4% 1 2 3 returns keeps rotating.
FY 2016 -9% 8% 10% 3 2 1

FY 2017 19% 12% -1% 1 2 3

FY 2018 10% 0% 8% 1 3 2
CAGR as on
Diversification helps
11.37% 8.74% 10.4%
31-03-2018 reduce such risks in
Value of
₹1 Lakh
₹8.62 L ₹5.34 L ₹7.19 L your portfolio.

Source: Bloomberg. Data for last 20 fiscal years. Mar ‘98 to Mar’ 18.
Proxies used for asset classes: Equity - NIFTY 50, Debt - NIFTY 10 year benchmark G Sec, Gold - Spot Rate ₹/10 Grams

25
Focus on
Asset Allocation
5 investors (A, B, C, D and E) have different asset allocations in
their investment portfolios. Let's see how their portfolios
perform in different market scenarios.

Asset Allocation A B C D E
Equity (%) 10 40 50 60 90
Debt (%) 90 60 50 40 10

Scenario 1 (Rising Market)

Assumed current SENSEX level - 33000
Assumed SENSEX level after 5 years - 66000

A B C D E
Equity 20.0 80.0 100.0 120.0 180.0
Debt* 132.2 88.2 73.5 58.8 14.7
Networth (Valuation at the end of 5 years) 152.2 168.2 173.5 178.8 194.7

Scenario 2 (Falling market)

Assumed current SENSEX level - 33000
Assumed SENSEX level after 5 years -16500

A B C D E
Equity 5.0 20.0 25.0 30.0 45.0
Debt* 132.2 88.2 73.5 58.8 14.7
Networth (Valuation at the end of 5 years) 137.2 108.2 98.5 88.8 59.7

What is going to be more crucial at the end of 5 years?

1 Timing the market +/- 10% at the time of entry, or,
2 Asset Allocation

For a rising market, more equity allocation is beneficial; while for a falling market, more debt allocation is
beneficial. But it is difficult to predict these market movements.

Yet, 90% of investors' time is spent wastefully in timing the market.

Instead, investors should spend more time on deciding their asset allocation basis their risk appetites.

Question on every investor's mind -

• Crude Prices are volatile • US interest rates rising
• Growth Coming back • Currency is volatile
• Inflation benign
Should I invest now? OR, wait for the Markets to correct?

*The rate of return for debt investments is assumed to be 8%.

The above figures are only illustrative to explain the concept that wealth creation depends largely on the
investor's asset allocation.

26
Equity Allocation and
Risk Appetite
How much equity exposure should an individual investor have?

As much as one does not need for a long term (minimum 5 to 7 years)

As much investment wherein one can digest a temporary erosion to

the tune of 25% to 30%

As much equity which keeps one financially and emotionally stable (if
one is temperamentally weak and gets disturbed with any short term
volatility then one needs to have commensurate exposure to equity)
Once an investor is convinced of these points, he/she can start investing based on his/her
asset allocation, irrespective of market valuation.
Investments must be tailored to investor’s individual situation and objectives and therefore, investors should consult their financial advisors to
ascertain whether the products are suitable for them.

EQUITY SCHEMES – Our Offerings

Equity

Active (9 schemes) Passive (4 schemes)

Thematic ELSS
Diversified HDFC Infrastructure Fund HDFC TaxSaver

Market Cap Biased Non Market Cap Biased

Large Cap Multi Cap

HDFC Top 100 Fund HDFC Equity Fund

Mid Cap Value

HDFC Mid Cap Opportunities Fund HDFC Capital BuilderValue Fund
Small Cap Focused
HDFC Small Cap Fund HDFC Focused 30 Fund
Large & Mid Cap
HDFC Growth Opportunities Fund
Index ETFs
HDFC Index Fund HDFC NIFTY 50 ETF
• NIFTY 50 Plan HDFC SENSEX ETF
• SENSEX Plan

27
HYBRID SCHEMES – Our Offerings
Expected Risk

Multi-Asset
Fund
Balanced HDFC Multi Asset
Advantage Fund Fund
Aggressive HDFC Balanced
Hybrid Fund Advantage Fund
Equity
HDFC Hybrid
Savings Fund
Equity Fund
Conservative HDFC Equity
Hybrid Fund Savings Fund
Arbitrage HDFC Hybrid
Fund Debt Fund
HDFC Arbitrage
Fund

Expected Return
Equity Oriented Hybrid Scheme Debt Oriented Hybrid Scheme

HYBRID FUNDS
Investor 1 invests ₹100 in equity and debt separately, with 25% of his capital in equity
and rest 75% in debt. Investor 2, on the other hand, invests ₹100 in a Hybrid Debt Fund
which has the same asset allocation. Let’s see what happens in 2 years.

Investor 1 Investor 2
Equity Debt ₹100 invested in
Hybrid Debt Fund
Asset Allocation in 25% (₹25) 75% (₹75) (75% Debt and
the beginning 25% Equity)
Year 1 returns -5% 7% 4.00%
Investor decision Sells due Hold Hold
after year 1 to losses
Asset Allocation (77% Debt and
0% 100%
after Year1 23% Equity)
Year 2 Returns 30% 7% 12.75%
Year 1 + Year 2 Returns
(absolute) 23.5% 14.5% 16.74%
Value of ₹100 invested
after 2 years 111.28 116.74

Investors tend to evaluate each investment separately. Fear of loss leads to irrational
decisions. E.g. Investor 1 is tempted to sell his equity investment after year 1 due to losses.
Hybrid products have lower volatility and thereby reduces panic amongst investors.
Source:-Bloomberg. Data for last 20 fiscal years. Apr ‘98 to Mar’ 18.
Proxies used for asset classes :Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams
The returns mentioned in the above table are assumed and are purely for illustration purpose. For detailed investment
strategy refer SID. HDFC Mutual Fund/HDFC AMC is not guaranteeing returns on investments made in this scheme.

28
Equity and
Debt cycles

75%
70%

29% 28%
25%
19% 20%
17% 17% 15%
13% 14% 12% 12%
10% 11% 12%
8% 9% 8%
5% 6% 5% 3%
2% 0% 0%

0% -1%
-5%
-9% -8% -8%
-12%

-35%

NIFTY 10 yr G-Sec Index NIFTY 50 TRI

Dot- com bubble Equity Bull Run Sub -prime Post Crisis Recovery ECB easing & global
growth stabilization
Debt Cycle Equity Cycle G – Sec Index NIFTY 50 Index

It is difficult to predict market cycles – hybrid funds provide a solution

The above asset classes are not strictly comparable as different asset classes have different risk profile.

Over the years, it has been observed that performance of various asset
classes keep on changing and no single asset class continues to
outperform or underperform.

As hybrid funds invest in both, equity and debt, it can be an ideal

solution for a retail investor, with low to moderate risk appetite.

“Never test the depth of the river with both of your feet.” - Warren Buffet

29
 Guidelines for
an investor at
Pre-Retirement
stage
Move your investments into low risk asset
class like Debt and opt for Systematic
Withdrawal Plan that will provide you with
monthly cash flows post retirement in a tax
efficient manner.

Keep some investments in equities as it

may provide a hedge against longevity risk.

SWP vs Dividends
The below table shows the difference between withdrawing money regularly through
SWP and receiving dividends.

Systematic Withdrawal Plan Dividend

Withdrawals through SWP is subject to capital Dividend are subject to dividend distribution tax
gains tax

Tax is paid only when there is a gain Tax is paid irrespective of market movements

Exemption of ₹1 lakh available for LTCG No exemption

Monthly cash flow under SWP is assured Cash flow is subject to availability of
distributable surplus in the scheme

It is advisable to choose a SWP amount lower than the expected return. If we opt for a higher amount for
withdrawal, we may end up withdrawing our capital.
Retail investors are better off opting for SWP under Growth option over Dividend option, as it helps to
provide monthly cash flow in a tax efficient manner.

SWP - Systematic Withdrawal Plan, LTCG – Long Term Capital Gain

Above is as per prevailing tax law, which are subject to change. Always consult your tax advisor
before taking investment decisions.

30
A tax efficient option - SWP

SWP IN THE FIRST YEAR OF INVESTMENT

SWP IN Short term capital gains tax at 15% only on the
YOUR gains made.
EQUITY
MUTUAL SWP AFTER THE FIRST YEAR OF INVESTMENT
FUNDS LTCG tax @ 10% only on the gains made, subject to
exemption# of ₹1 lakh for the financial year.

SWP IN THE FIRST 3 YEARS OF INVESTMENT

SWP IN Short term capital gains tax at applicable tax slab of the

DEBT
investor only on the gains made.

MUTUAL SWP AFTER 3 YEARS OF INVESTMENT

FUNDS Long term capital gains tax @ 20% only on the gains
made, with indexation benefit.

A careful understanding of SWP brings out the tax efficiency of the facility.
It is important to see how SWP can be beneficial to a particular investor.

SWP - Systematic Withdrawal Plan, LTCG - Long Term Capital Gain

# Exemption of ₹1 lakh includes LTCG on transfer of equity share in a company or a unit of an equity oriented
fund or a unit of a business trust. The same will be taxed without indexation and without foreign currency
fluctuation benefit. Above is as per prevailing tax laws, which are subject to change. Always consult your tax
advisor before investing.

31
Tax impact explained
Mr. Sharma opts for SWP in the growth option of a equity oriented mutual fund. In SWP,
every withdrawal consists of principal component and gain component. Tax is applicable
only on the gain component. Gain component is smaller as compared to principal
component during initial withdrawals. Hence, tax is lower.
Over time, the principal component of the payout decreases giving way to the gain component.
Let us consider the example below:

Initial Investment: ₹ 1,00,000 SWP amount each month: ₹ 1,000

Total withdrawal over 12 months: ₹ 12,000 Tax Paid: ₹ 305

Taxes paid on gain as percentage of total 30% tax on interest bearing

withdrawal over 12 months : 2.55% VS traditional investments
Income

Refer the table below for detailed calculations:

Date NAV Number Units Units O/s Cashflow Gain Principal Capital Value of Investment
of Units Transacted (₹) Component Component Gains Tax @ in the Fund (₹)
(₹) (₹) 17.472% (₹)

01- 01-2017 40.97 - 2,440.82 2,440.82 1,00,000 1,00,000 1,00,000

01- 02-2017 43.71 2,440.82 (22.88) 2,417.94 (1,000) 62.65 937 11 1,05,683
01- 03-2017 44.23 2,417.94 (22.61) 2,395.33 (1,000) 73.74 926 13 1,05,949
01- 04-2017 45.77 2,395.33 (21.85) 2,373.49 (1,000) 104.88 895 18 1,08,634
01- 05-2017 46.93 2,373.49 (21.31) 2,352.18 (1,000) 127.04 873 22 1,10,393
01- 06-2017 47.66 2,352.18 (20.98) 2,331.20 (1,000) 140.36 860 25 1,11,103
01- 07-2017 47.41 2,331.20 (21.09) 2,310.11 (1,000) 135.90 864 24 1,09,530
01- 08-2017 49.63 2,310.11 (20.15) 2,289.96 (1,000) 174.49 826 30 1,13,650
01- 09-2017 48.76 2,289.96 (20.51) 2,269.45 (1,000) 159.82 840 28 1,10,665
01- 10-2017 47.78 2,269.45 (20.93) 2,248.52 (1,000) 142.46 858 25 1,07,425
01- 11-2017 51.90 2,248.52 (19.27) 2,229.25 (1,000) 210.64 789 37 1,15,704
01- 12-2017 51.22 2,229.25 (19.52) 2,209.73 (1,000) 200.18 800 35 1,13,191
01- 01-2018 52.27 2,209.73 (19.13) 2,190.60 (1,000) 216.14 784 38 1,14,495

Total Value Returned Total 305 1,26,495

Tax To Be Paid 305

Post Tax Return 1,26,190

Particulars SWAP Value Principal Taxable Income Tax to be Paid Tax as a % of Units Value of
(₹) Returned (₹) (₹) @ 17.472% (₹) SWAP (%) Outstanding Investment

Amount 12,000 10,252.00 1,748.00 305 2.55^ 2190.60 1,14,495.00

SWP works out to be a tax efficient solution to structuring regular payouts.

SWP - Systematic Withdrawal Plan

The above simulation is for illustration purposes only. HDFC Mutual Fund/AMC is not guaranteeing return on investments made in
the scheme. Investors should be aware that the fiscal rules/ tax laws may change and there can be no guarantee that the current
tax position may continue indefinitely. Short Term Capital Gains (STCG) at the rate of 15% plus applicable surcharge and cess.
Investors are advised to consult their tax advisers. As the units redeemed are less than 15% of the units allotted on 01.01.2017, NIL
exit load has been considered. ^This is for illustration purpose only, tax as a % of SWAP could be higher in subsequent years.

32
ILLUSTRATION OF SWP -
RETIREMENT PLAN

SIP of "X" amount SIP of "X" amount SIP of "X" amount SIP of "X" amount
for 10 years and for 15 years and for 20 years and for 25 years and
SWP of "2X" for SWP of "4X" for SWP of "9X" for SWP of "18X" for
Illustration the next 20 years the next 20 years the next 20 years the next 20 years

Monthly SIP amount ₹5,000 ₹5,000 ₹5,000 ₹5,000

SIP tenure in years 10 15 20 25

Assumed annual 12% 12% 12% 12%

rate of return
Total amount invested ₹6,00,000 ₹9,00,000 ₹12,00,000 ₹15,00,000
through SIP

Value at the end of SIP ₹11,61,695 ₹25,22,880 ₹49,95,740 ₹94,88,175

SWP starts after the completion of SIP investment

Monthly SWP amount ₹10,000 ₹20,000 ₹45,000 ₹90,000

SWP tenure in Years 20 20 20 20

Total SWP amount (A) ₹24,00,000 ₹48,00,000 ₹1,08,00,000 ₹2,16,00,000

Value at the end ₹27,61,276 ₹76,95,498 ₹98,99,870 ₹1,43,17,477

of SWP years ( B)

Total amount received by

investor by the end of SIP ₹51,61,276 ₹1,24,95,498 ₹2,06,99,870 ₹3,59,17,477
and SWP (A+B)

SWP - Systematic Withdrawal Plan, SIP - Systematic Investment Plan

Disclaimer: This illustration is made available to you as a self help tool for your independent use. It is not guaranteeing or
promising or forecasting any returns. The illustration is not sufficient and should not be used for the development or
implementation of an investment strategy or does not have regard to specific investment objectives, financial situation and
the particular needs of any specific person who may use this illustration. Asset Management Company Limited/ Mutual
Fund/ Sponsors and their affiliates are not liable for any financial decisions arising out of the use of this illustration and also
they do not take the responsibility, liability, for any error/omission or inaccuracy or for any losses sufffered nor understake
the authenticity of the figures calculated on the basis of this illustration. The user before acting on any information herein
should make his/her/their own investigation and see appropriate professional advice and shall alone be fully
responsible/liable for any decision taken on the basis of information contained herein. In view of individual nature of tax
consequences each investor is advised to consult his/her own professional tax adviser.
Exit load and tax consequences have not been considered in the above illustration.

33
 Debt Schemes – Our Offerings
Debt Schemes

Duration Based Theme Based

HDFC Overnight Fund HDFC Gilt Fund

HDFC Liquid Fund HDFC Banking and PSU Debt Fund

HDFC Ultra Short Term Fund HDFC Corporate Bond Fund

HDFC Money Market Fund HDFC Floating Rate Debt Fund

HDFC Low Duration Fund HDFC Credit Risk Debt Fund

HDFC Short Term Debt Fund HDFC Dynamic Debt Fund

HDFC Medium Term Debt Fund

HDFC Income Fund

Comparison -
Liquid Funds vs Savings Account
16

14

12 Liquid funds can give better

10 returns than savings account.
8

6 They provide control over

clients funds.
4

2
Instant redemption facility is
0
also offered by certain liquid
May-15

Aug-15

Nov-15

Feb-16

May-16

Aug-16

Nov-16

Feb-17

May-17

Aug-17

Nov-17

Feb-18

schemes.
Liquid Fund - Growth Option (Regular Plan) Category Avg Saving Bank Interest

“The most important investment you can make is in yourself.” - Warren Buffet

7 day Rolling Return. Returns are not assured/guaranteed. Past performance may or may not be sustained in the future.

34
How to mitigate
risk in a portfolio?
Year 2000

Invest Lump sum -

₹10 lakhs

HDFC Liquid Fund – 2000 to 2018

weekly dividend option
Invest weekly dividends
in HDFC Equity Fund –
Growth option#

Year 2018 Year 2018

Value in Value in
HDFC Liquid Fund – HDFC Equity Fund
₹10.32 lakhs Growth option –
₹86.15 lakhs

Change in Asset allocation from 2000 to 2018

Year Equity (%) Debt (%)
2000 0% 100%
2003 15.32% 84.68%
2005 40.22% 59.78%
2010 73.98% 26.02%
2015 85.91% 14.09%
2018 89.30% 10.70%

This is only an illustration. Returns are not assured. Mutual Fund investments are subject to market risks.
# The equity component would always be at risk.
For complete performance disclosure of HDFC Liquid Fund and HDFC Equity Fund, refer pages 38 and 39.

Source: Internal computation based on NAVs

Values as on 31st December 2018; Start Date - 18th October 2000

35
Tax Reckoner for Investments in
Mutual Fund Schemes - FY 18-19

Dividend Distribution Tax applicable to Schemes other than equity oriented schemes (payable by the scheme) *
Resident Individual / HUF Domestic Corporates Non Resident Individual
25% + 12% Surcharge + 4% Cess = 29.12% 30% + 12% Surcharge + 4% Cess = 34.944% 25% + 12% Surcharge + 4% Cess = 29.12%

Capital Gain Taxation applicable to Schemes other than equity oriented schemes
Resident Individual / HUF $ Domestic Corporates @ Non Resident Individual $/#

Long Term Capital Gains [Units 20% with indexation + Surcharge as 20% with indexation + Surcharge as 20% with indexation + Surcharge as
held for more than 36 applicable + 4% Cess applicable + 4% Cess applicable + 4% Cess
months] (Listed Units) = 23.92% or 22.88% = 23.296% or 22.256% = 23.92% or 22.88%

Tax deducted at Source = NIL Tax deducted at Source = NIL Tax deducted at Source = 23.920% or 22.88%

Long Term Capital Gains [Units 20% with indexation + Surcharge as applicable 20% with indexation + Surcharge as 10% without indexation and foreign
held for more than 36 + 4% Cess applicable + 4% Cess currency fluctuation benefits + Surcharge
months] (Unlisted Units) = 23.92% or 22.88% = 23.296% or 22.256% as applicable + 4% Cess
= 11.96% or 11.44%

Tax deducted at Source = NIL Tax deducted at Source = NIL Tax deducted at Source = 11.960% or 11.44%

Short Term Capital Gains (Units 30%^ + Surcharge as applicable+ 4% Cess 30% + Surcharge as applicable + 4% Cess 30%^ + Surcharge as applicable + 4% Cess
held for less than 36 months) = 35.88% or 34.32% 25%^^^ + Surcharge as applicable + 4% Cess = 35.88% or 34.32%
= 34.944% or 33.384%
= 29.120% or 27.820%

Tax deducted at Source = NIL Tax deducted at Source = NIL Tax deducted at Source = 35.88% or 34.32%
(Listed and Unlisted)^

Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund
other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.
Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from
capital gains. The cost of acquisition of the units in the consolidated plan shall be the cost of units in consolidating plan of mutual fund scheme and
period of holding of the units of consolidated plan shall include the period of holding for which the units in consolidating plan of mutual fund
scheme were held.

* For the purpose of determining the tax payable, the amount of distributed income be increased to such amount as would, after reduction of tax
from such increased amount, be equal to the income distributed by the Mutual Fund. The impact of the same has not been reflected above.
$ - Surcharge at 15%, is applicable where income of Individual, HUF, AOP, BOI, Artificial juridical person being unit holders exceeds ₹1 crore and
surcharge at 10% is to be levied in case of Individual, HUF, AOP, BOI, Artificial juridical person being unit holders where income of such unit holders
exceeds ₹50 lakhs but does not exceed ₹1 crore.
@ - Surcharge at the rate of 7% is levied for domestic corporate unit holders where the income exceeds ₹1 crore but is less than ₹10 crores and at
the rate of 12%, where income exceeds ₹10 crores.
# - Short term/ long term capital gains tax will be deducted at the time of redemption of units in case of Non Resident Individual investors only.
^ - Assuming the investor falls into highest tax bracket.
^^^ - If total turnover or Gross receipts during the financial year 2016-17 does not exceed ₹250 crores.
Health and Education cess shall be applicable @ 4% on aggregate of base income tax plus surcharge.

DISCLAIMER: The information given here is as of 1st April, 2018 and is neither a complete disclosure of every material
fact of Income-tax Act 1961 nor does it constitute tax or legal advice. In view of the individual nature of the tax
consequences, each investor is advised to consult his/her own professional tax advisor. For further details, kindly refer to
the Tax Reckoner 2018 - 19 available under section “Investor Corner” on www.hdfcfund.com

36
Tax Reckoner for Investments in
Mutual Fund Schemes - FY 18-19

Dividend Distribution Tax applicable to Equity Oriented Schemes

Resident Individual / HUF Domestic Corporates Non Resident Individual
10% + 12% Surcharge + 4% Cess = 11.648% 10% + 12% Surcharge + 4% Cess = 11.648% 10% + 12% Surcharge + 4% Cess = 11.648%

Capital Gain Taxation applicable to Equity Oriented Schemes

Resident Individual / HUF $ Domestic Corporates @ Non Resident Individual $/#

Long Term Capital Gains## 10% without indexation + Surcharge as 10% without indexation + Surcharge as 10% without indexation+ Surcharge as
(Units held for more than applicable + 4% Cess applicable + 4% Cess applicable + 4% Cess
12 months) = 11.96% or 11.44% = 11.648% or 11.128% = 11.96% or 11.44%

Tax deducted at Source = NIL Tax deducted at Source = NIL Tax deducted at Source
= 11.96% or 11.44%

Short Term Capital Gains 15% + Surcharge as applicable + 4% Cess 15% + Surcharge as applicable + 4% Cess 15% + Surcharge as applicable + 4% Cess
(Units held for 12 months = 17.94% or 17.16% =17.472% or 16.692% = 17.94% or 17.16%
or less)
Tax deducted at Source = NIL Tax deducted at Source = NIL Tax deducted at Source
= 17.94% or 17.16%

Securities transaction tax (STT) will be deducted on equity oriented scheme at the time of redemption/ switch to the other schemes/ sale of units.
Mutual Fund would also pay securities transaction tax wherever applicable on the securities sold.
$ - Surcharge at 15%, is applicable where income of Individual, HUF, AOP, BOI, Artificial juridical person being unit holders exceeds ₹1 crore and
surcharge at 10% is to be levied in case of Individual, HUF, AOP, BOI, Artificial juridical person being unit holders where income of such unit holders
exceeds ₹50 lakhs but does not exceed ₹1 crore.
@ - Surcharge at the rate of 7% is levied for domestic corporate unit holders where the income exceeds ₹1 crore but less than ₹10 crores and at the
rate of 12% where income exceeds ₹10 crores.
# - Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of Non Resident Individual investors only.
## - The cost of acquisition of an asset acquired before 1 April 2001 shall be allowed to be taken as fair market value as on 1 April 2001.
Finance Act, 2018 terminates the exemption granted under section 10(38) to long term capital gains arising on transfer of listed shares or units of
equity oriented mutual funds or units of business trusts by introduction of section 112A to provide that long term capital gains arising from transfer of
a long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at 10%
without indexation and without foreign currency fluctuation benefit of such capital gains exceeding one lakh rupees. The concessional rate of 10%
shall be available only if securities transaction tax (STT) has been paid on both acquisition and transfer in case of equity shares and on transfer in case
of units of equity-oriented mutual funds or units of business trust. Further, the amendment to section 55 of the Act provides for a grandfathering
provision upto January 31, 2018.

(a) In the case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption
PERSONAL INCOME TAX STRUCTURE
For individuals, Hindu Undivided Family, limit is ₹300,000.
Association of Persons, Body of Individuals and (b) In case of a resident individual of age of 80 years or above, the basic exemption limit is ₹500,000.
Artificial Juridical Persons.
(c) A rebate of lower of actual tax liability or ₹2,500 in case of resident individuals having total income of less
Taxable Income Tax Rates (%) than ₹350,000.
Up to ₹2,50,000 (a) (b) (d) Health and Education cess shall be applicable @ 4% on aggregate of base income tax plus surcharge.
Nil
₹2,50,001 to ₹5,00,000 (c) (d) 5% (e) Surcharge at the rate of 15%, is applicable where income exceeds ₹1 crore and at the rate of 10% where
₹5,00,001 to ₹10,00,000 (d) 20% income exceeds ₹50 lakhs but does not exceed ₹1 crore. Marginal relief for such person is available.
₹10,00,001 and above (d) (e) 30%

DISCLAIMER: The information given here is as of 1st April, 2018 and is neither a complete disclosure of every material
fact of Income-tax Act 1961 nor does it constitute tax or legal advice. In view of the individual nature of the tax
consequences, each investor is advised to consult his/her own professional tax advisor. For further details, kindly refer to
the Tax Reckoner 2018 - 19 available under section “Investor Corner” on www.hdfcfund.com

37
 HDFC Equity Fund - Performance - Regular Plan - Growth Option

NAV as at Dec 31, 2018 ₹629.619 (per unit) Value of `10,000 invested
Period Scheme Benchmark Scheme Benchmark
Returns (%) Returns (%) # Benchmark Benchmark
Returns (%) ## (`) (`)# (`)##
Last 1 year -3.51 -2.12 4.61 9,649 9,788 10,461
Last 3 years 12.28 12.29 12.47 14,161 14,162 14,230
Last 5 years 15.62 14.60 12.89 20,668 19,771 18,342
Since Inception 18.83 11.48 N.A. 6,29,619 1,35,991 N.A.

Past performance may or may not be sustained in the future. Returns greater than 1 year period are Compounded Annualised (CAGR). Load is not
taken into consideration for computation of above performance. Inception date of the scheme is 1st January, 1995. The scheme is managed by Mr.
Prashant Jain since 20th June, 2003. Different plans viz. Regular Plan and Direct Plan have different expense structure. The expenses of the Direct Plan
under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. Returns as on 31st December, 2018.
#NIFTY 500 (Total Returns Index). ##NIFTY 50 (Total Returns Index), N.A.: Not Available

Performance of other funds managed by Prashant Jain, Fund Manager of HDFC Equity Fund

Managing scheme Returns (%) as on 31st December, 2018

Scheme since Last 1 year (%) Last 3 years (%) Last 5 years (%)
HDFC Top 100 Fund 20th Jun, 2003 0.13 12.75 14.55
Benchmark - NIFTY 100 (Total Returns Index) 2.55 12.68 13.76
HDFC Balanced Advantage Fund 20th Jun, 2003 -3.07 10.68 15.59
Benchmark - NIFTY 50 Hybrid Composite Debt 65:35 Index 5.26 10.92 11.67
HDFC Hybrid Debt Fund (Equity Assets) 26th Dec, 2003 0.59 7.98 10.30
Benchmark - NIFTY 50 Hybrid Composite Debt 15:85 Index 5.71 8.28 9.54

Past performance may or may not be sustained in the future. Returns greater than 1 year period are Compounded Annualised (CAGR). Load is not taken
into consideration for computation of above performance(s). Different plans viz. Regular Plan and Direct Plan have different expense structures. 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. The above
returns are of Regular Plan - Growth Option. 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.

Performance return of Category I - FPI Portfolio(s) managed by the Fund Manager (Mr. Prashant Jain)
Managing portfolio Returns (%) as on 31st December, 2018
Scheme since Last 1 year (%) Last 3 years (%) Last 5 years (%)
Category I - FPI Portfolio
(managed under a bilateral agreement under 22nd Mar, 2016 1.61 N.A. N.A.
Regulation 24(b) and subject to applicable laws)
Benchmark - MSCI India (Total Returns) 1.17 N.A. N.A.

Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualised (CAGR). Inception date is
March 22, 2016. The performance is not comparable with the performance of the aforementioned scheme(s) of HDFC Mutual Fund due to differing
investment objective/s and fundamental differences in asset allocation, investment strategy and the regulatory environment. The said disclosure is pursuant
to SEBI Circular no. Cir/IMD/DF/7/2012 dated February 28, 2012 pertaining to Regulation 24(b) of SEBI (Mutual Funds) Regulations, 1996. FPI - Foreign
Portfolio Investor. N.A.: Not Available

38
 HDFC Liquid Fund - Performance - Regular Plan - Growth Option

NAV as at Dec 31, 2018 ₹3596.3162 (per unit) Value of `10,000 invested
Period Scheme Benchmark Scheme Benchmark
Returns (%) Returns (%) # Benchmark Benchmark
Returns (%) ## (`) (`)# (`)##
Last 1 year 7.23 7.58 6.87 10,723 10,758 10,687
Last 3 years 7.11 7.24 6.66 12,290 12,334 12,136
Last 5 years 7.75 7.83 7.35 14,529 14,580 14,258
Since Inception 7.28 N.A. 6.38 35,963 N.A. 30,848

Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized (CAGR). Load is not
taken into consideration for computation of above performance(s). The above returns are of regular plan – growth option. Performance of dividend option
under the scheme for the investors would be net of distribution tax as applicable. 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. Inception date of the scheme 17th October,2000. The scheme is managed by Anupam Joshi since October 27, 2015 . # CRISIL Liquid
Fund Index ## CRISIL 1 year T-Bill Index. Data as on December 31, 2018. N.A.: Not Available

Performance of other funds managed by Anupam Joshi, Fund Manager of HDFC Liquid Fund
Anupam Joshi manages 13 other schemes which have completed 1 year.

Performance of Top 3 schemes managed by Anupam Joshi

Managing scheme Returns (%) as on 31st December, 2018

Scheme Last 1 year (%) Last 3 years (%) Last 5 years (%)
since
HDFC FMP 1190D March 2016 (1) Mar 23, 16 8.95 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.
HDFC FMP 1161D July 2016 (1) JuL 27, 16 8.21 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.
HDFC FMP 1128D June 2016 (1) Jun 29, 16 7.88 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.
Performance of Bottom 3 schemes managed by Anupam Joshi

Managing scheme Returns (%) as on 31st December, 2018

Scheme Last 1 year (%) Last 3 years (%) Last 5 years (%)
since
HDFC FMP 1107D March 2016 (1) Mar 29, 16 7.09 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.
HDFC FMP 1104D April 2016 (1) Apr 21, 16 7.07 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.
HDFC FMP 1120D March 2016 (1) Mar 16, 16 7.47 N.A. N.A.
Benchmark - CRISIL Composite Bond Fund Index 5.91 N.A. N.A.

Performance of close-ended schemes, being close-ended in nature, is not strictly comparable with that of open-ended schemes since the investment
strategy for close-ended schemes is primarily buy-and-hold whereas open-ended schemes are actively managed.
Past performance may or may not be sustained in the future. The above returns are of Regular Plan - Growth Option. Load is not taken into
consideration for computation of performance. On account of difference in the type of the Scheme, asset allocation, investment strategy, inception dates,
the performance of these schemes is strictly not comparable. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the
basis of since inception returns. 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. 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. Data as on
December 31, 2018. N.A.: Not Available

39
PRODUCT LABELING:
THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME RISKOMETER
INVESTORS WHO ARE SEEKING*

HDFC Overnight Fund • Regular income over short term that may
be in line with the overnight call rates
(An open ended debt scheme investing in • To generate returns by investing in debt
overnight securities)
and money market instruments with
overnight maturity

HDFC Liquid Fund • Regular income over short term

• To generate income through a portfolio
(An Open ended Liquid scheme) comprising money market and debt Investors understand that their principal will be at
low risk
instruments

HDFC Ultra Short Term Fund • Income over short term

• Income/capital appreciation through
(An open ended ultra-short term debt investment in debt securities and
scheme investing in instruments such that
the Macaulay Duration of the portfolio is money market instruments
between 3 months and 6 months)

HDFC Low Duration Fund • Income over short term

• To generate income/capital appreciation
(An open ended low duration debt scheme through investment in debt securities
investing in instruments such that the
Macaulay Duration of the portfolio is between and money market instruments
6 months and 12 months)

HDFC Money Market Fund • Income over short term

• To generate income/ capital appreciation
(An open-ended debt scheme investing in by investing in money market
money market instruments)
instruments

HDFC Short Term Debt Fund • Income over short term

• To generate income/capital appreciation
(An open ended short term debt scheme through investments in Debt and Money
investing in instruments such
that the Macaulay Duration of the portfolio is Market Instruments
between 1 year and 3 years)
Investors understand that their principal will be at
moderately low risk
HDFC Floating Rate Debt • Income over short term
Fund • To generate income/capital appreciation
through investment in a portfolio
[(An open ended debt scheme comprising substantially of floating rate
predominantly investing in floating rate
instruments (including fixed rate debt, fixed rate debt instruments swapped
instruments converted to floating rate for floating rate returns and money
exposures using swaps / derivatives)]
market instruments

HDFC Corporate Bond Fund • Income over short to medium term

• To generate income/capital appreciation
(An open ended debt scheme predominantly through investments predominantly in
investing in AA+ and above rated corporate
bonds) AA+ and above rated corporate bond

HDFC Arbitrage Fund • Income over short term

• Income through arbitrage opportunities
(An open ended scheme investing in between cash and derivative market and
arbitrage opportunities)
arbitrage opportunities within the
derivative segment

* I nve stor s s h oul d cons ul t their financial advisers if in doubt abo u t wh e t h e r t h e pro d u ct i s su i t able fo r t h e m.

40
 THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME RISKOMETER
INVESTORS WHO ARE SEEKING*

HDFC Banking and PSU • Income over short to medium term

Debt Fund • To generate income/capital appreciation
through investments in debt and money
(An open ended debt scheme market instruments consisting
predominantly investing in debt
instruments of banks, Public Sector predominantly of securities issued by
Undertakings, Public Financial entities such as Scheduled Commercial
Institutions and Municipal Bonds)
Banks (SCBs), Public Sector Undertakings
(PSUs), Public Financial Institutions
(PFIs), Municipal Corporations and such
other bodies

HDFC Gilt Fund • Credit risk free returns over medium to

long term
(An open ended debt scheme investing in • To generate credit risk-free returns
government securities across maturities)
through investments in sovereign
securities issued by the Central
Government and/or State Government

HDFC Credit Risk Debt • Income over short to medium term

Fund • To generate income/capital appreciation
by investing predominantly in AA and
(An open ended debt scheme below rated corporate debt (excluding AA+
predominantly investing in AA and below
rated corporate bonds [excluding AA+ rated rated corporate bonds)
corporate bonds])

HDFC Medium Term Debt • Income over medium term

Fund • To generate income/capital appreciation
[An open ended medium term debt scheme through investments in Debt and Money
investing in instruments such that the
Macaulay Duration of the portfolio is between Market Instruments Investors understand that their principal will be at
moderate risk
3 years and 4 years]

HDFC Income Fund • Income over medium to long term

• To generate income/capital appreciation
(An open ended medium term debt scheme through investments in debt and money
investing in instruments such that
the Macaulay Duration of the Portfolio is market instruments
between 4 years and 7 years)

HDFC Dynamic Debt Fund • Income over medium to long term

• To generate income/capital
(An open ended dynamic debt Scheme appreciation
investing across duration)
by investing in a range of debt and
money market instruments

HDFC Small Cap Fund • To generate long-term capital

(An open ended equity scheme
appreciation/income
predominantly investing in small cap stocks) • Investments predominantly in Small-Cap
companies

HDFC Capital Builder • To generate long-term capital

Value Fund appreciation/income in the long term
• Investment primarily in undervalued
(An open ended equity scheme
following a value investment strategy) stocks

* Inve s to rs sh oul d consul t their fi nancial advisers if in dou bt abo ut wh eth er th e pr o duc t i s sui tabl e fo r th em .

41
 THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME RISKOMETER
INVESTORS WHO ARE SEEKING*

HDFC TaxSaver • To generate long-term capital

(An Open-ended Equity Linked Savings
appreciation/ income
Scheme with a statutory lock in of 3 years and • Investment predominantly in equity &
tax benefit)
equity related instruments

HDFC Index Fund-NIFTY • Returns that are commensurate with the

50 Plan performance of the NIFTY 50, subject to
tracking errors over long term
(An open ended scheme replicating /
tracking NIFTY 50 Index) • Investment in equity securities covered
by the NIFTY 50

HDFC Index • Returns that are commensurate with the

Fund-SENSEX Plan performance of the S&P BSE SENSEX,
subject to tracking errors over long term
(An open-ended scheme replicating / • Investment in equity securities covered
tracking S&P BSE SENSEX Index)
by the S&P BSE SENSEX

HDFC NIFTY 50 ETF • Returns that are commensurate with the

performance of the NIFTY 50, subject to
(An open ended scheme replicating / tracking errors over long term
tracking NIFTY 50 Index)
• Investment in equity securities covered
by the NIFTY 50

HDFC SENSEX ETF • Returns that are commensurate with the

performance of the S&P BSE SENSEX,
(An open ended scheme replicating / subject to tracking errors over long term
tracking S&P BSE SENSEX Index)
• Investment in equity securities covered
by the S&P BSE SENSEX

HDFC Growth • To generate long-term capital

Opportunities Fund appreciation/income
• Investments in predominantly Large Cap
(An open ended equity scheme investing in
both large cap and mid cap stocks) and Mid Cap companies

HDFC Focused 30 Fund • To generate long-term capital

appreciation/income
An open ended equity scheme investing in
maximum 30 stocks in large-cap, mid-cap and • Investments in equity & equity related
small-cap category (i.e. Multi-Cap) instruments of up to 30 companies

HDFC Equity Fund • To generate long-term capital

(An open ended equity scheme investing
appreciation / income
across large cap, mid cap & small cap stocks) • Investment predominantly in equity &
equity related instruments

HDFC Top 100 Fund • To generate long-term capital

(An open ended equity scheme
appreciation/income
predominantly investing in large cap stocks) • Investment predominantly in Large-Cap
companies

HDFC Mid-Cap • To generate long-term capital

Opportunities Fund appreciation/income
• Investments predominantly in Mid-Cap
(An open ended equity scheme
predominantly investing in mid cap stocks) companies

*I nve s to r s should con sult their fi nanc ial ad v iser s if in d ou b t abo ut whet her t he pr o duc t is s uit able fo r t hem.

42
 THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME RISKOMETER
INVESTORS WHO ARE SEEKING*

HDFC Multi-Asset Fund • To generate long-term capital

appreciation/income
(An open ended scheme investing in Equity • Investments in a diversified portfolio of
and Equity related instruments, Debt &
Money Market Instruments and Gold) equity & equity related instruments, debt
& money market instruments and Gold

HDFC Equity Savings • Capital appreciation while generating

Fund income over medium to long term
• Provide capital appreciation and income
(An open ended scheme investing in distribution to the investors by using equity
equity, arbitrage and debt)
and equity related instruments, arbitrage
opportunities, and investments in debt and
money market instruments

HDFC Hybrid Debt Fund • To generate long-term income /capital

appreciation
(An open-ended hybrid scheme investing • Investments primarily in debt securities,
predominantly in debt
HDFC Hybrid Debt Fund instruments) money market instruments and moderate
exposure to equities

HDFC Hybrid Equity Fund • To generate long-term capital

appreciation / income
(An open ended hybrid scheme investing • Investments predominantly in equity &
predominantly in equity and equity related
instruments) equity related instruments. The scheme
will also invest in debt and money market
instruments

HDFC Balanced • To generate long-term capital

Advantage Fund appreciation / income
• Investments in a mix of equity and debt
(An open ended Balanced Advantage Fund) instruments

*I nve s to r s s h o u l d co n s u l t t h e i r fi n a n c i a l a d v i s e r s i f i n d o u b t a b o u t w h e t h e r t h e p r o du c t i s s u i t a b l e fo r t h e m .

Disclaimer
The information herein is based on internal data, publicly available information and other sources believed to be reliable and is
for general purposes only and not an investment advice. Any calculations made are approximations, meant as guidelines only,
which you must confirm before relying on them. Past performance may or may not be sustained in the future.

The information provided herein does not have regard to specific investment objectives, financial situation and the particular
needs of any specific person who may receive this information. The information/ data herein alone are not sufficient and should
not be used for the development or implementation of an investment strategy.

HDFC Mutual Fund/HDFC Asset Management Company Limited (HDFC AMC) is not guaranteeing any returns on investments
made in any Scheme. 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.

43
 HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166,
Backbay Reclamation, Churchgate, Mumbai - 400020.

Website: www.hdfcfund.com
Toll Free No: 1800 3010 6767 / 1800 419 7676

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