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October 2019

Table of Contents

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• What is Value?

• Multi-Cap Investment strategy

• Diversification

• Consistent performer

• Resilient performance across cycles

• PE Expansion

• Earnings yield minus 10 year G-Sec

• Portfolio Composition

• Scheme Facts & Asset Allocation

• Scheme Performance

• Disclaimer & Risk Factors

• The Scheme’s approach is opportunity dependent, primarily buying value stocks.

• Focus on undervalued stocks that are trading below intrinsic value, as measured by potential earnings or asset values, and/or future cash flow growth.

• Does not consciously seek to be contrarian. However, many opportunities would require a contrarian view. The Scheme may own good businesses going through a temporary difficult period as they usually present an attractive entry point.

What is Value ?

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A Multi-Cap Investment Strategy

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• No Market cap bias

Being a multi-cap fund benchmarked to the Nifty 500 there is an attempt to have good representationacross market capitalizations based on opportunity and risk-reward .

• No Sector bias

Well diversified across sectors-with a bias towards attractive companies in each sector (Refer slide 5).

• Value Bias

- The Scheme will generally maintain a minimum of 50% of the equity portfolio in stocks where

- Trailing P/E (Price/Earnings) or trailing P/B (Price /Book Value) Ratio is less than Median P/E or P/Bof stocks in the NSE 500 Index

• 4 Guiding principles for portfolio creation

1. Focus on buying value stocks

2. Bottom-up stock picking within sector

3. Sectoral diversification

4. Ensuring consistency of risk adjusted returns

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending onthe market conditions.

Risk management through wide sectoral diversification

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The Scheme has maintained exposure to at least 16 sectors in the benchmark (Nifty 500) over last 4 quarters.

Outperformance generated over benchmark (Refer slide 9) without excessive risk owing to sectoral tilts.

Effective diversification across wide array of sectors to manage risk

Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in thesestocks/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 therespective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.

Alpha generation with diversification similar to benchmark

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Average Deviation from benchmark less than +/- 2% in 12 out 18 sectors over last 16 quarters .

Sorted descending as per Sep-19 Overweight/ Underweight

Sectoral presence similar to benchmark, coupled with bottom up stock picking has generated consistent alpha over the years(Refer slide 9) Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in thesestocks/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 respectivesector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.

Risk Management through portfolio diversification

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Average Top 10 Holding (%) since Jun 2015 = 42%

Average Number of stocks since Jun 2015 = 56

Consistent approach to diversification

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A Consistent Performer

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Internal study of peer set #

• 3 & 5 year CAGR rolling returns on a daily basisanalysed for the past 5 years for each day fallingduring the period 30th September 2014 to 30th

September 2019

• Category median 3 & 5 year CAGR observed for eachday over the said 5 year.

• HDFC Capital Builder Value Fund outperformedthe category median in 99.8% instances for 3 yearand 5 year investment horizon.

HDFC Capital Builder Value Fund

No of Funds in Category

No of Observations

% times > Median

Average CAGR of fund over the

period

Average CAGR of median returns over the period

3 Year Rolling Returns 51 1226 99.8 18.1% 16.5%

5 Year Rolling Returns 50 1226 99.8 16.5% 14.8%

Why look at Consistency?

• A fund having large outperformance in a particular financial year may not sustain the same year after year. Hence, trying topredict which fund will top the chart in the next one year may not be possible.

• While choosing funds, one needs forward looking analysis that does not focus only on funds with strong recent performance.

• Consistent funds may not be the highest in terms of quantum of returns delivered, but would have delivered above medianreturns during most points in time.

Source: ICRA Online. # Includes Multi-Cap, Value, Focused, Dividend Yield, Contra and Large & Mid Cap Funds as per SEBI categorization with AUM above Rs 100 crores.Excludes funds which had a small/mid cap bias prior to scheme re-categorization (Source: B&K Securities). Data as on 30th September 2019. Category median refers to themid-point of the range of CAGR returns for each day of observation for the Schemes under the category. * Past performance may or may not be sustained in the future.The study cited above is for general information and illustrative purposes to explain the concept of consistent performance and should not be construed as an investmentadvice on minimum returns or guarantee of returns. Due to personal nature of investments and financial planning, investors are advised to consult their financial advisor.

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HDFC Capital Builder Value Fund - Growth Median

Risk Management through portfolio diversification

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All dividends are on face value of Rs. 10 per Unit. After payment of the dividend, the per Unit NAV falls to the extent of the payout and statutory levy, if any. Thereis no assurance or guarantee to unit holders as to rate/quantum of dividend distribution nor that the dividends will be paid regularly. Dividend payout is subject toavailability of distributable surplus. Please log on to www.hdfcfund.com for Record Date-wise listing of dividends declared.

Outperformance in 18 out of 24 financial years*

14 Year Dividend

Track Record2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividend per unit (Rs)

5.0 5.0 5.0 3.0 3.5 2.0 2.3 2.5 2.5 2.5 2.5 3.0 2.8 3.0 3.5 2.8

NAV (Record Date)

19.5 22.6 26.6 26.4 30.9 12.9 24.0 24.8 22.6 22.4 21.8 31.4 23.4 28.8 31.8 26.7

Dividend Yield (%)

25.6 22.1 18.8 11.4 11.3 15.5 9.4 10.1 11.1 11.2 11.5 9.6 11.7 10.4 11.0 10.3

Date Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Mar-18Mar -

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HDFC Capital Builder Fund (A) (29.8) (22.9) 23.7 65.6 7.9 (21.8) 8.1 (9.4) 128.6 56.3 68.3 0.2 25.8 (38.7) 108.6 14.9 (5.5) 6.9 23.2 43.2 (2.5) 27.8 14.7 6.3

Benchmark (B)(12.21) (7.96) 15.53 8.16 76.94 (42.60) 5.75 (6.51)

113.93

24.68 67.27 10.03 22.75 (39.11) 90.02 8.35 (7.75) 6.43 19.02 34.94 (6.53) 25.53 12.97 9.70

Outperformance (A – B)

(17.54) (14.89) 8.20 57.46 (69.03) 20.78 2.33 (2.93) 14.64 31.66 1.06 (9.81) 3.08 0.45 18.57 6.59 2.22 0.51 4.22 8.27 3.99 2.23 1.72 (3.36)

Returns are for Regular Plan Growth Option. Benchmark-NIFTY 500. As on March 31st 2019* Scheme taken over from Zurich India Mutual Fund with effect June 20th 2003 .Past performance may or may not be sustained in the future. HDFC AMC is not guaranteeing returns on any investments made in this Scheme. Forcomplete performance details refer slide 16.

Resilient performance across market volatility periods

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P1-Mid 90s Crash:-01-Feb-94 to 22-Nov-96 P8- Eurozone debt crisis:-09-Nov-10 to 30-Jan-12P2- Tech Bubble peak:-22-Nov-96 to 11-Feb-00, P9-Policy paralysis:-30-Jan-12 to 31-Aug-13P3- Tech bubble meltdown -11-Feb-00 to 21-Sep-01, P10-Oil Price correction:-31-Aug-13 to 31-Mar-15P4- US Fed monetary policy easing:-21-Sep-01 to 14-Jan-04, P11-ECB easing and global growth stabilisation: 31-Mar-15 to 31-Jan-18P5- India discovery/Emerging market rally:-14-Jan-04 to 08-Jan-08, P12-Since Jan’18:-31-Jan-18 to 30-Sep-19P6- Global Financial Crisis Lows:-08-Jan-08 to 09-Mar-09, P7- Post Crisis Recovery:-09-Mar-09 to 09-Nov-10,

*Data since scheme inception date (1st Feb 1994). # NIFTY 500-As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of Nifty 500 PRI values from Feb 01, 94 to Dec 31, 94 and TRI values since Jan 01, 95. ## NIFTY 50 - As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of Nifty 50 PRI values from Feb 01, 94 to June 29, 99 and TRI values since June 30, 99. Returns are compounded and annualized for more than one year period. Past performance may or may not be sustained in future. Scheme returns are for Regular Plan-Growth Option. For complete performance details refer slide 16. Source:- Publicly available information.

Outperformed Benchmark index (NIFTY 500) in 10 out of 12 periods.

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12Capital Builder Value -17% 35% -30% 59% 45% -57% 94% -18% 5% 50% 17% -6%NIFTY 500 TRI # -19% 16% -46% 65% 38% -58% 81% -19% 4% 37% 14% -1%NIFTY 50 TRI ## -12% 12% -35% 47% 36% -53% 73% -15% 6% 31% 11% 4%

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P/E Expansion (NIFTY 500)

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Source: BloombergData as on September 30, 2019

Blended Forward P/E Average since Aug’05 = 14.8

• Market P/E has witnessed expansion over the past 4 fiscal years on account of stronger macro economic fundamentals and favorable global cues.

• The premium has shrunk recently.

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NIFTY 500 Blended Forward P/E Average

Earnings Yield Minus 10 Year G-Sec

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Source: Bloomberg .Calculation reflects the difference between the estimated earnings yield and the prevailing 10 year G-Sec benchmark. For the purpose of estimating theearnings yield, the estimated forward P/E of the NIFTY 500 Index has been used. Data as on Sep 30, 2019.

The gap between earnings yields and 10 year G Sec yield is now below long term average.

-3.50-3.25-3.00-2.75-2.50-2.25-2.00-1.75-1.50-1.25-1.00-0.75-0.50-0.250.000.250.500.751.001.251.501.752.00

Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19

Earnings Yield minus 10 year G-Sec is below long term averages

Earnings Yield-10 Year G-Sec Average

Scheme Facts

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Type of Scheme An open ended equity scheme following a value investment strategy

Inception Date

(Date of allotment)February 01, 1994

Investment Objective To achieve capital appreciation/ income in the long term by primarily investing in undervalued stocks

Fund Manager $ Mr Miten Lathia

PlansDirect PlanRegular Plan

Sub-OptionsUnder Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.

Minimum ApplicationAmount

(Under Each Plan/Option)

Purchase: Rs. 5,000 and any amount thereafter

Additional Purchase: Rs. 1,000 and any amount thereafter

Load Structure

Entry Load:• Not Applicable. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI

registered Distributor) based on the investors’ assessment of various factors including the servicerendered by the ARN Holder.

Exit Load:• In respect of each purchase / switch-in of Units, an Exit Load of 1.00% is payable if Units are

redeemed / switched-out within 1 year from the date of allotment.

• No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment.

In respect of Systematic Transactions such as SIP, Flex SIP, GSIP, STP, Flex STP, Swing STP, Flex index, etc - Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. For further details on load structure, please refer to the Scheme Information Document/Key information memorandum of the Scheme.

Benchmark Index NIFTY 500

For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at InvestorService Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Chirag Dagli

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Portfolio Composition (As of September 30, 2019)

14** Risk Free Rate 5.52% (Source FIMMDA, MIBOR)For complete portfolio details please visit www.hdfcfund.com

Particulars % To Net Assets

Top 10 Equity And Equity Related Holdings 48.47%

Total Equity & Equity Related Holdings 97.72%

Cash, Cash Equivalents And Net Current Assets 2.28%

Assets Under Management (Rs. In Crore)* 4,455.26

Standard Deviation** 4.212%

Beta** 1.034

Sharpe Ratio** 0.051

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Asset Allocation Pattern

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For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at InvestorService Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Chirag Dagli

Under normal circumstances, the asset allocation (% of net assets) of the Scheme’s portfolio will be as follows.

Types of Instruments Normal Allocation (%) Risk Profile

Equity and Equity relatedinstruments

65-100 High

Debt Securities (includingsecuritised debt) andmoney marketinstruments

0-35 Low to Medium

Units issued by REITs andInvITs

0-10 Medium to High

Non-convertiblepreference shares

0-10 Low to Medium

The Scheme may invest in the schemes of Mutual Funds in accordance with the applicable extant SEBI (Mutual Funds) Regulations as amended from time to time. The Scheme may invest up to 35% of its net assets in foreign securities. The Scheme may invest up to 100% of its net assets in Derivatives.

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Scheme Performance Summary – HDFC Capital Builder Value Fund

Value of Rs 10,000 invested

Scheme Returns (%)

Benchmark Returns (%)

Additional Benchmark Returns (%)

Scheme Benchmark

(Rs)

Additional Benchmark

(Rs)

Last 1 Year -3.29 3.69 6.31 9,671 10,369 10,631

Last 3 Years 7.28 9.44 11.49 12,346 13,109 13,858

Last 5 Years 8.92 9.07 8.93 15,331 15,436 15,344

Since Inception 13.80 NA NA 276,154 NA NA

The above scheme has been managed by Miten Lathia, the fund manager since May 10, 2012 (Co-managed with Mr Chirag Setalvad up to19.03.17)The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices.Past performance may or may not be sustained in the future. The above returns are of Regular Plan – Growth Option. Returns greater than1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of performance. Different Plansviz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to theextent of the distribution expenses / commission charged in the Regular Plan. Returns as on 30th September 2019.

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Performance Summary of other Scheme(s) managed by the Fund Manager

Scheme

Managing scheme since

Returns (%)

1 year 3 year 5 yearCAGR (in %) CAGR (in %)

Miten Lathia manages total 2 schemes

HDFC DYNAMIC PE RATIO FUND OF FUNDS 27-Jun-14 5.48 6.63 7.99

NIFTY 50 Hybrid Composite Debt 65:35 Index

9.03 10.15 9.13

Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the TotalReturn Index (TRI) Variant of the Indices. The above returns are of Regular Plan - Growth Option. Load is not taken intoconsideration for computation of performance. # The scheme is co managed by Miten Lathia (Equities) and Anil Bamboli(Debt). Returns as on 30th September, 2019. Different Plans viz. Regular Plan and Direct Plan have a different expensestructure. 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. On account of difference in the type of the Scheme, asset allocation, investmentstrategy, inception dates, the performance of these schemes is strictly not comparable.

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Scheme Performance SummaryThe presentation dated 14th October 2019 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 relyingon them. The information given is for general purposes only. Past performance may or may not be sustainedin future. The statements are given in summary form and do not purport to be complete. The views /information provided do not have regard to specific investment objectives, financial situation and theparticular needs of any specific person who may receive this information. The information/ data herein arenot investment advice and alone are not sufficient and should not be used for the development orimplementation of an investment strategy. The statements contained herein are based on our current viewsand involve known and unknown risks and uncertainties that could cause actual results, performance orevents to differ materially from those expressed or implied in such statements. Stocks/Sectors referredherein are illustrative and not recommended by HDFC Mutual Fund / AMC. The Fund may or may not haveany present or future positions in these sectors. HDFC Mutual Fund/AMC is not guaranteeing returns on anyinvestments. The data/statistics are given on the basis of information which is already available in publiclyaccessible media to explain general market trends in the securities market. The same should not beconstrued as any research report/research recommendation to buy or sell any security covered under therespective sector/s. Neither the AMC and HDFC Mutual Fund nor any person connected with them, acceptsany liability arising from the use of this document. The recipient(s) before acting on any information hereinshould make his/her/their own investigation and seek appropriate professional advice and shall alone befully 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.

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Thank You

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