HDFC Net asset allocator booklet

1Refer disclaimers on page 29.

��HDFC Asset Allocator Fund of Funds

Contact your Mutual Fund Distributor or Registered Investment Adviser today,or give a missed call on 7397412345.

• Investment predominantly in equity oriented, debt oriented and Gold ETF schemes.

• Capital appreciation over long term

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

# The product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. For latest Riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

HDFC Asset Allocator Fund of Funds (An open ended Fund of Funds scheme investing in equity oriented, debt oriented and gold ETFs schemes) is suitable for investors who are seeking*

Riskometer #

��NFO Period :

April 16,2021 to

April 30,2021NFO Period :

April 16,2021 to

April 30,2021

Why Asset Allocation ?

On an average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by Asset Allocation

- Roger Ibbotson

2

Refer disclaimers on page 29.

3

Source:- MFI, Data from 1st April 1998 to 31st March 2021.

NIFTY 50 - Wealth Creation Journey

0

2000

4000

6000

8000

10000

12000

14000

16000

Apr-

98M

ar-9

9Fe

b-00

Jan-

01De

c-01

Nov

-02

Oct

-03

Sep-

04Au

g-05

Jul-0

6Ju

n-07

May

-08

Apr-

09M

ar-1

0Fe

b-11

Jan-

12De

c-12

Nov

-13

Oct

-14

Sep-

15Au

g-16

Jul-1

7Ju

n-18

May

-19

Apr-

20M

ar-2

1

CAGR Returns ~ 12%

Equity : Offers Returns with Volatility


Equities create Long Term Wealth but the journey is volatile

Asset Class winners change over time

Source:- Bloomberg, World Gold Council, Data from 1st April 1998 to 31st March 2021. *Upto 14th January 2020. All returns are CAGR %, unless specified otherwise. $ Absolute Returns used asperiod less than a year. COVID-19 Correction considered from 14th January 2020 to 23rd March 2020 as market bottomed that day & Post Correction Rally from 23rd March 2020 to 31st March 2021. Classification of periods as per internal HDFC AMC classification. Data used for asset classes: Equity -NIFTY50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 GramsThe Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes.

4

Market Events


14%

-14%

37%

7% 8%11%

-38%

93%

16% 20%

5% 5%8% 5% 3% 5%

0%

10%

19% 20%

4%

11%7% 6%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Equity Debt Gold

FY 98-00(Tech Bubble)

FY 00-03(Tech bubblemeltdown)

FY 03-08(Economic

Boom)

FY 08-11 (Sub-Prime Crisis/Eurozone crisis)

FY 11-17(Post Crisis)

FY 17-20*(Market

Recovery)

COVID-19Correction$

Post-CorrectionRally $

Ret

urns

%

5

Even within Equities –Different Market Caps perform at different times

Out of 16 Fiscal years since FY06, Small cap has been the best performing category in7 0ut of 16 instances. Large cap and Mid cap have been the best performing asset classes in 6 and 3 years respectively.

Source: MFI 1st April 2005 to 31st March 2021. Data used for asset classes: Large Cap – NIFTY 100 TRI, Mid Cap - NIFTY 150 TRI , Small Cap – NIFTY Small Cap 250 TRI

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

Period Large Cap Mid Cap Small Cap

65.1%

13.5%

23.9%

-36.6%

84.9%

11.4%

-7.8%

8.8%

19.9%

30.8%

-6.9%

22.6%

12.2%

14.0%

-24.9%

71.2%

74.8%

-1.1%

21.5%

-48.5%

135.8%

4.7%

-4.6%

4.5%

18.0%

59.7%

-1.7%

37.2%

16.7%

-0.6%

-30.1%

101.6%

78.7%

11.8%

31.3%

-54.9%

141.4%

0.9%

-8.6%

-5.3%

22.9%

62.8%

-5.9%

40.6%

12.9%

-12.4%

-40.2%

118.7%

6

3

7

Large Cap

Mid Cap

Small Cap

3

10

3

7

3

6

Rank 1 Rank 2 Rank 3


6

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

Small Cap

Equity Gold Debt

Risk (Annualized Standard Deviation %)

20.2

14.7

0

5

10

15

20

25

4.9

Source:- Bloomberg. World Gold Council Data for last 23 fiscal years. 1st April 1998 to March 31, 2021. Data used for asset classes: Equity -NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Standard Deviation % of Daily returns considered. The Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes

Different Asset Classes have different risk profile


Hence….. Asset Allocation

Asset Allocation may lead to better risk- adjusted returns

- Michael LeBoeuf

The most important key to successful investing can be summed up in just two words – Asset Allocation

7


Asset Allocation and its Benefits

Each asset class behaves differently across different economic cyclesIt reduces dependency on a single asset class to generate returns.Mitigates volatility of portfolio returns

Determine financial goalsAscertain risk appetite Determine optimal asset allocationInvest in different asset classes directly and rebalance portfolio periodically

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

01

Why Asset allocation is crucial?

How can investors implement asset allocation?

8


Invest in an Asset Allocation mutual fund

or

The difference between success and failure is not which stock you buy or which piece of real estate you buy, its asset allocation- Tony Robbins

Correlation and diversification

Source:- Bloomberg. Data for last 23 fiscal years. April 1998 to March 2021Data used for asset classes: Equity-NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams)The Scheme proposes to invest in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purposes.

Combining assets with low correlation, could help investors in reducing risk and may offer benefits of optimal returns.

Since April 1998Asset correlation is a measure of how asset classes move in relation to one another over a period of time. Correlation coefficient can range from -1 to +1. When assets move in the same direction at the same time, they are considered to be positively correlated. When one asset tends to move up and when the another goes down, the two assets are considered to be negatively correlated.

Daily 1 year rolling returns since April 1998 exhibit negative correlation between Equity, Debt and Gold.

Low/negative correlation between these asset classes creates a strong case for diversification and thereby reduce risk in the portfolio.

1

-0.25

-0.05

Equity

Debt

Gold

-0.25

1

-0.09

-0.05

-0.09

1

Equity GoldDebt

9


Asset Class winners change over timePower of Asset Allocation

FPI Flows Rs crsLets consider the CAGR growth of an investment from 1st April 1998 to 31st March 2021, along with the volatility of returns over that period

Gold and Equity performed better than Debt in terms of returns while debt had the lowest volatility.

Source:- Bloomberg. Data for last 23 fiscal years. April 1998 to March 2021. Returns are CAGR. Data used for asset classes: Equity - NIFTY 50, Debt-NIFTY 10 year benchmark G Sec, Gold-Spot Rate INR/10 Grams. Monthly portfolio rebalancing assumed. Standard Deviation % of Daily returns considered. The above analysis is based on backtesting of the above mentioned asset classes. HDFC Mutual Fund/AMC is not guaranteeing future returns of these asset classes. The Scheme proposes to invests in gold ETF schemes and hence is impacted by the price of gold. Comparison with Gold has been given solely for the purpose of understanding and illustrative purpose. The above combinations are for illustrative purpose. Investors are requested to take professional advise while making investment decisions.

Outcome of the investment over ~2 decades?

Individual Asset Classes

11.61%

8.61%10.71%

20.2%

4.9%

14.7%

0%

5%

10%

15%

20%

25%

Equity Debt Gold

CAGR Returns % Volatility %

Yes, a combination of Equity, Debt and Gold (60%,30%,10% respectively) would have yielded returns slightly lower than equity returns but with much lower volatility , thereby underlining the importance of asset class diversification.

10


Asset AllocationCAGR Returns % Volatility %

10.9% 11.5%11.9%

8.7%

12.3%

16.2%

0%

5%

10%

15%

20%

25%

40E+50D+10G 60E+30D+10G 80E+10D+10G

However, could you have got a better deal for your investments?

How the numbers stack up?

Asset Allocation by Investors not alwaysdetermined by valuations

MF Industry Equity Sales based on AMFI Returns Based on NIFTY 50 Index. Returns are CAGR as return period shown are more than 1 year. Data as on February 26, 2021

Investments made without considering valuation may lead to suboptimal future returns.

FinancialYear

Net Investments into Equity MFs

12 M Trailing PE

Next 2 Years Returns

17.96%-11.09%5.29%38.96%0.44%-1.30%12.52%22.24%7.44%3.94%14.32%12.56%-7.80%11.91%

FY: 05-06FY: 06-07FY: 07-08FY: 08-09FY: 09-10FY: 10-11FY: 11-12FY: 12-13FY: 13-14FY: 14-15FY: 15-16FY: 16-17FY: 17-18FY: 18-19FY: 19-20FY: 20-21*

50,88028,71649,3604,0841,181(11,795)504(14,371)(11,254)80,79385,08693,502240,311118,72367,035(75,088)

20.2618.4020.6314.2922.3322.1418.7117.5718.8622.7020.8923.2624.6629.0119.3840.10

FinancialYear

Net Investments into Equity MFs

12 M Trailing PE

Next 2 Years Returns

17.96%-11.09%5.29%38.96%0.44%-1.30%12.52%22.24%7.44%3.94%14.32%12.56%-7.80%12.42%

FY: 05-06FY: 06-07FY: 07-08FY: 08-09FY: 09-10FY: 10-11FY: 11-12FY: 12-13FY: 13-14FY: 14-15FY: 15-16FY: 16-17FY: 17-18FY: 18-19FY: 19-20FY: 20-21*

50,88028,71649,3604,0841,181(11,795)504(14,371)(11,254)80,79385,08693,502240,311118,72367,035(75,088)

20.2618.4020.6314.2922.3322.1418.7117.5718.8622.7020.8923.2624.6629.0119.3840.10

FinancialYear

Net Investmentsinto Equity MFs

12 M Trailing PE

Next 2 YearsReturns

ValuationRange

PE<20

PE>20

7,679

708,041

14.01%

6.43%

Cumulative Net Investmentsinto Equity MFs

Average Next 2 years returns

11


*

So what is the solution ?

Systematic & Process Driven Asset Allocation

Equity, Debt or Gold ?

Large cap, Mid Cap or Small Cap ?

Frequency of Rebalancing ?

Whether Asset Allocationis Tax Efficient ?

Simple solution to all these investment questions

12


Presenting

HDFC Asset AllocatorFund of FundsA Systematic & Process driven approach to Asset Allocation

13

HDFC Asset Allocator Fund of Funds - Asset Allocation

Equity Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. Debt Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. HDFC Gold ETF and/or other schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. For complete details, please refer to Scheme Information Document

Units of DomesticMutual Funds

Schemes

95%-100%

Equity Oriented Schemes* (40-80%)

Gold ETF Schemes*** (10-30%)

Debt Oriented Schemes** (10-50%)

14


* *****

Equity Allocation: Model driven asset allocation

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. TTM- Trailing 12 Months, PE – Price/ Earnings, PB – Price/ Book Value, Earnings Yield = Trailing 12 M Earnings per share/ Market price per share, G Sec Yield = 10 Yr G Sec. Depending on the market and other conditions, the asset allocation may or may not be based on the model.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

Dec-05

Aug-06

May-07

Feb-08

Oct-08

Jul-09

Apr-10

Jan-11

Sep-11

Jun-12

Mar-13

Dec-13

Aug-14

May-15

Feb-16

Nov-16

Jul-17

Apr-18

Jan-19

Oct-19

Jun-20

Mar-21

NIF

TY 5

0 Le

vels

% o

f Net

Ass

ets

Alloca�on to Equity (% of Net Assets) (LHS) NIFTY 50 (RHS)

Factors considered by the model include 1) TTM PE, 2) 1 Year Forward PE, 3)TTM PB 4) Earnings Yield/ G-Sec Yield

Model will indicate the % of equity allocation on the basis of back testing results

Portfolio will be rebalanced on a monthly basis

15

Historical Asset Allocation range indicated by the model

Post GFC trough

Pre GFC peak

COVID led correc�on


Equity Allocation % indicated by model during key market events

GFC – Global Financial Crisis Period upto 31 March, 2021. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. The above data is just to indicate the key market events and resultantly higher and lower end of the equity allocation indicated by the model. For illustrative purposes only.

Based on valuations, the financial model indicated an reasonably optimal equity allocation during key events as under:

Pre GFC peak

Post GFC trough

Post GFC recovery

Eurozone Debt Crisis

Mid and Small Cap Rally

COVID-19 led correction

Nov’07

Oct’08

Oct’09

Sep’11

Sep’18

Apr’20

5763

2886

4712

4943

10930

9860

47%

80%

46%

80%

46%

78%

-52%

63%

28%

15%

5%

49%*

Events Month endNIFTY 50

Level Equity

Allocation % Next 1 Year

NIFTY Returns

16


*

Debt Allocation Strategy

17


Debt portfolio aims to play the role of reducing volatility while generating reasonable returns

Background:

To invest, predominantly, in schemes with exposure, mostly, to issuers with high credit quality

Controlled interest rate risk

Generally debt portfolio duration would be in the range of 1 - 3 years

However, in case the interest rates are very low or very high in the judgement of the fund manager, then the duration may be beyond this range

Strategy:

Of the Debt allocation. #Debt Oriented schemes of HDFC Mutual Fund. For complete details, please refer to Scheme Information Document. The proposed investment strategy is subject to change depending on the market conditions.

Overnight, Liquid, Ultra Short, Low Duration, Short Duration, Medium duration, Medium to long duration, Long Duration categories of MF Schemes

Duration based allocation (75%-100%)*#

All other categories of Debt oriented MF Schemes

Sectoral/Thematic allocation (0-25%)*#

*

Interest Rate Outlook

18


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

Continued intervention by RBI through unconventional tools like Operation TWIST, LTROs, Targeted LTROs, increasing HTM limit, OMOs for State Development Loans, etc.

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

Risk of 2nd / 3rd wave of Covid-19 which can impact the economic recovery

Factors supporting lower yields

Large supply of dated securities by Central and State Governments

Excess SLR securities holding of PSU banks

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

Improvement in global growth outlook and rise in commodity prices

Domestic economic activity has improved significantly and outlook remains optimistic

Factors opposing lower yields

Long end yields are likely to remain range-bound in the near term while yields at short end could rise over time

Gold Allocation to act as hedge

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

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

Taxes & duties as levied by government

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

19


The Scheme will invest in Gold ETFs, which invest in gold.

Allocation within Equities

Equity Oriented schemes of HDFC Mutual Fund. #of the Equity Allocation. $Market Cap Based. For complete details, please refer to Scheme Information Document. The proposed investment strategy is subject to change depending on the market conditions.

Equity Oriented Schemes* (40%-80%)

Base Allocation#$

75%-100%

Large Cap, Mid Cap, Small cap and Flexi Cap categories of MF Schemes

Tactical Allocation#

0-25%

All other categories of MF Schemes

20


*

Base Allocation within Equity : Model driven asset allocation

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. TTM- Trailing 12 Months, PE – Price/ Earnings. Depending on the market and other conditions, the asset allocation may or may not be based on the model.

Factors considered by the model include 1) TTM PE, 2) 1 Year Forward PE

Model will indicate the % of Midcap & Smallcap allocation, devised on the basis of back testing results

Portfolio will be rebalanced on a quarterly basis (In Respect of Market Cap)

Historical Asset Allocation range indicated by the model

0

5,000

10,000

15,000

20,000

25,000

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Dec-

11M

ar-1

2Ju

n-12

Sep-

12De

c-12

Mar

-13

Jun-

13Se

p-13

Dec-

13M

ar-1

4Ju

n-14

Sep-

14De

c-14

Mar

-15

Jun-

15Se

p-15

Dec-

15M

ar-1

6Ju

n-16

Sep-

16De

c-16

Mar

-17

Jun-

17Se

p-17

Dec-

17M

ar-1

8Ju

n-18

Sep-

18De

c-18

Mar

-19

Jun-

19Se

p-19

Dec-

19M

ar-2

0Ju

n-20

Sep-

20De

c-20

Mar

-21

NIF

TY M

idca

p Le

vels

% o

f Net

Ass

ets

Alloca�on to Midcap & Smallcap (% of Net Assets) (LHS) NIFTY Midcap (RHS)

21

COVID led correc�on

Midcap & Smallcap Rally

Post GFC Recovery


Base Equity Allocation % indicated by model during key market events

GFC – Global Financial Crisis Period upto 31 March 2021. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending on the market conditions. The above data is just to indicate the key market events and resultantly higher and lower end of the base allocation indicated by the model. For illustrative purposes only.

Based on valuations, the financial model has indicated an optimal equity allocation during key events as under:

Post GFC Recovery

Mid and Small Cap Rally

COVID-19 led correction*

Dec’11

Apr’17

Apr’20

80%

20%

80%

4.6%

-15.7%

38.2%*

Events Month end Midcap & SmallcapAllocation %

Outperformance of average returns of Midcap & Smallcap over

NIFTY 50 in Next 3 Years

22


*

Protection during Market Corrections

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The proposed investment strategy is subject to change depending on the market conditions. Period of cumulative 3 months with negative returns of less than -5% for NIFTY 50 has been considered to show the downward protection via proposed asset allocation model. Returns are absolute

23

Whenever 3 month cumulative returns of NIFTY 50 corrected more than 5%, model based returns fall in most of the instances was lower. Out of 18 downward periods under consideration, the asset allocation model in 16 instances managed to offer protection.

May-12Aug-13Apr-15May-15Aug-15Oct-15Jan-16Feb-16Nov-16Dec-16Oct-18Nov-18Jul-19Aug-19Feb-20Mar-20Apr-20May-20

-5.7%-10.4%-2.8%-1.3%-2.3%-1.2%-3.6%-7.9%-4.3%-5.3%-2.0%-3.0%0.0%-0.2%1.3%

-20.0%-11.4%-10.2%

-8.7%-8.8%-7.2%-5.2%-5.4%-5.4%-6.3%

-12.3%-6.5%-5.0%-8.5%-6.7%-5.3%-7.7%-7.1%

-31.3%-14.9%-11.4%

3.1%-1.5%4.4%3.9%3.1%4.2%2.7%4.4%2.1%-0.3%6.5%3.7%5.3%7.4%8.5%11.3%3.5%1.2%

65%118%39%25%42%23%58%64%67%106%23%45%1%3%NA

64%77%90%

Nifty (B) Difference(A-B)

3 Month Cumulative ReturnsDownside

Capture Ratio(A/B)

Model based Asset Allocation (A)

Month End


Based on valuations, the financial model indicated a reasonably optimal asset allocation

Resultantly during periods of market correction, downside was protected.

Why HDFC Asset Allocator Fund of Funds ?

Timing the market for various asset classes is difficult

Lack of diversification leads to higher volatility of returns

Combining negatively correlated/ less correlated asset classes reduces portfolio risk

HDFC Asset Allocator Fund of Funds could be considered as an option to meet diversified asset allocation needs of investors

Active asset allocation with periodic review and rebalancing

Aims to generate better risk adjusted returns

Debt taxation with indexation benefits

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

24


Note: Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which Fund of Funds scheme makes investment (subject to regulatory limits). For complete risk factors and Scheme details, refer Scheme Information Document

Macroeconomic Update: Recovery on track

25

FPI Flows Rs crsGrowth Outlook remains positive

GDP likely to improve sequentially

Strong Global economic recovery should support exports

FY22^ likely to register double digit real growth due to low base and fast pace normalisation of economic activity

Outlook on External sector comfortable supported by large foreign exchange reserves and likely stable capital flows given ample global liquidity


-24.4%

-7.3%

0.4%

-1.4%

10.5%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Q1FY21 Q2FY21 Q3FY21 Q4FY21E FY22E

Real GDP to contract by ~8% in FY21

Trade deficit

As % of GDP

Invisibles (net)

Current Account

As % of GDP

Capital Account

Balance of Payment

Foreign Exchange Reserves

-158

-5.5%

133

-25

-0.9%

84

59

476

-101

-3.8%

123

22

0.8%

67

89

580

-157

-5.2%

129

-28

-0.9%

76

48

NA

USD bn FY20 FY21E FY22E

Source: Kotak Institutional Equities

The information here in is based on the assumption that disruption due to Covid-19, if any, will be limited in FY22. However, if impact of Covid-19 is significant in FY22 also, various scenarios presented in this slide may not hold good.

^

26

Macroeconomic Update: Recovery on track

FPI Flows Rs crsUnion Budget 2021-22 announced slew of measures to support growth

Sharp increase in the capital and revenue spending

Setting up Development Financial Institution to fund infrastructure

Setting up of “Bad Bank”, push for privatization, etc.

Fiscal deficit set to widen, partly due to transfer of FCI’s liability on government books

RBI to maintain liquidity at adequate levels to keep easy financial conditions; should provide fillip to growth and limit significant rise in yields


-200,000

-

200,000

400,000

600,000

800,000

Ap

r/19

May

/19

Jun

/19

Jul/1

9

Au

g/1

9

Sep

/19

Oct

/19

No

v/19

Dec

/19

Jan

/20

Feb

/20

Mar

/20

Ap

r/20

May

/20

Jun

/20

Jul/2

0

Au

g/2

0

Sep

/20

Oct

/20

No

v/20

Dec

/20

Jan

/21

Feb

/21

Mar

/21

Interbank Liquidity (INR Cr)

Centre's Fiscal deficit as % of GDP

4.1 3.9 3.5 3.5 3.4

4.6

9.5

6.8

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

FY15FY16

FY17FY18

FY19FY20

FY21RE

FY22BE

Fund Facts

Investment Objective

Type of Scheme An open ended Fund of Funds scheme investing in equity oriented, debt oriented and gold ETF schemes

To seek capital appreciation by managing the asset allocation between equity oriented, debt oriented and gold ETF schemes.There is no assurance that the investment objective of the Scheme will be realized.

Mr. Amit Ganatra (Equity oriented schemes), Mr Anil Bamboli (Debt oriented Schemes), Mr Krishan Kumar Daga (Gold ETFs)

Direct PlanRegular Plan

Under Each Plan: Growth & Payout of Income Distribution Cum Capital Withdrawal (IDCW) option and Re-investment of Income Distribution Cum Capital Withdrawal (IDCW) Option

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

90% NIFTY 50 Hybrid Composite Debt 65:35 TR Index + 10% Domestic Price of Gold arrived at based on London Bullion Market Association's (LBMA) AM fixing price

Fund Manager

Plans

Options

Minimum ApplicationAmount (Under Each Plan/Option)

Load Structure

Benchmark Index

Entry Load

Exit Load

In respect of each purchase / switch-in of Units, 15% of the units (“the limit”) may beredeemed without any Exit Load from the date of allotment.

Any redemption in excess of the above limit shall be subject to the following exit load:

Exit Load of 1.00% is payable if units are redeemed / switched out within 1 year from the date of allotment.

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

In case of Systematic Transactions such as SIP, GSIP, STP, Flex STP, Swing STP, Flex index; Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.

Not Applicable.

During NFO - Purchase: Rs 5,000 and any amount thereafterDuring continuous offer period (after scheme re-opens for repurchase and sale):

27

Units of domestic Mutual Fund Schemes as under:

Equity Oriented Schemes*

Debt Oriented Schemes**

Gold ETF Schemes***

Debt Securities & Money Market Instruments

95

40

10

10

0

100

80

50

30

5

Low to High

Low to Medium

Medium to High

Low to Medium

Type of InstrumentsMinimum Allocation(% of Total Assets)

Maximum Allocation(% of Total Assets)

Risk Profile ofthe Instrument

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

Equity Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. Debt Oriented schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributes. HDFC Gold ETF and/or other schemes of HDFC Mutual Fund or other Domestic Mutual Funds having similar objectives, strategy, asset allocation and other attributesFor complete details, please refer to Scheme Information Document

******

28

Asset Allocation


This presentation dated 9th April 2021 has been prepared by HDFC Asset Management Company Limited (HDFC AMC) based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. The information contained in this document is for general purposes only and not an investment advice. The document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information/ data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The information herein is based on the assumption that disruption due to Covid-19, if any, will be limited in FY22. However, if impact of Covid-19 is significant in FY22 also, various scenarios presented in this slide may not hold good. Past performance may or may not be sustained in future. Stocks/Sectors referred in the presentation are illustrative and should not be construed as an investment advice or a research report or a recommended by HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these sectors. HDFC Mutual Fund/AMC is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. Neither HDFC AMC and HDFC Mutual Fund nor any person connected with them, accepts any liability arising from the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

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

Disclaimer & Risk Factors

29

Thankyou

Documents

HDFC Net asset allocator booklet