HDFC Growth Fund - September 2015.pdf

8/17/2019 HDFC Growth Fund - September 2015.pdf

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This product is suitable for investors who are seeking*:

• Capital appreciation over long term

• Investment predominantly in equity and equity related instruments

*Investors should consult their financial advisers if in doubt about whether

the product is suitable for them. September 2015

Riskometer

HDFC Growth Fund(An Open Ended Growth Scheme)

Growing With Confidence#

# The fund has given a CAGR return of 19.04% since inception. For complete details refer slide 13


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Table of Contents

• Growing – Staying Patient Is the Key

• Investment Philosophy

• Current Investment Strategy

• Equity Portfolio Composition

• Portfolio Facts

• Equity Market Outlook

• Dividend History

• Why HDFC Growth Fund

• Asset Allocation Pattern

• Product Features & Scheme Performance

• Disclaimer

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Growing – Staying Patient Is the Key

3

125.22

60.30

0

20

40

60

80

100

120

140

Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14

HDFC Growth Fund S&P BSE SENSEX

Inception

Sept 11th

2000

Aug-15

Staying invested & patient is key to long

term wealth creation

Source: BSE

Internal data computation

Values are of August 31, 2015.

Past Performance may or may not be sustained in the future. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme.Fund Inception date September 11 , 2000. BSE SENSEX values indexed to Rs 10 from scheme inception date. NAV on inception date was Rs 10. For

further details on performance refer slide 13.


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Investment Philosophy Focus On

the LongTerm

Maintain Amargin of

safety

InvestmentsConfer

proportionateownership

Maintain Abalanced

outlook onthe Market

DisciplinedApproachto Selling

4

The scheme intends invest in sectors/companies that would

benefit from a growing Indian economy.

• Growth in the Indian economy is driven by :

• Growing investments to build infrastructure and

manufacturing capacities

• Growing knowledge intensive industries like IT and

Pharma

• Increasing consumption levels

Approach

• The scheme would endeavor to purchase stocks that

represent a discount to its value, in an effort to preserve

capital and generate superior growth.

• The investment portfolio would be regularly monitored

to understand the impact of changes in business and

economic trend as well as investor sentiment.

• The decision to sell a holding would be based on the

fund managers perception of the market with an aim to

generate superior returns.

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


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Current Investment Strategy

•

Capitalize on growing Indian Economy by investing in companies that offer superior risk adjustedreturns across sectors with a large cap bias.

• Among three themes (Investment, consumption and knowledge intensive), the scheme would

generally invest between 70-90% in large-caps comprises (companies drawn from the S&P BSE SENSEX

or companies with a market cap larger than the smallest company in the S&P BSE SENSEX) and the

remaining corpus in mid and small-caps.

• Strategy is to have about 70-90% exposure to Large cap companies:

• Available at relatively attractive valuations.

• High quality companies with strong earnings growth

• Sustainable business models

• Invest remaining in mid and small caps offering:

• Deep value

• Strong earnings visibility

• Value unlocking potential

• Long term bets

• Currently over weight on Energy and Industrials. Under weight on FMCG, Auto, IT and Pharma Neutral

on Financials

5HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to changedepending on the market conditions. Stocks/sectors referred above are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have

any present or future positions in these sectors.


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Equity Portfolio Composition

25.2

11.310.3

6.75.9

4.6 4.1 3.83.1 2.9

19.2

Banks Software Petroleum Products

Auto Pharmaceuticals Construction

Capital Goods Power Finance

Chemicals Others (13 Sectors)

Portfolio as on 31st August 2015. For complete portfolio details visit www.hdfcfund.com

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http://www.hdfcfund.com/http://www.hdfcfund.com/


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Portfolio Facts

Portfolio as on 31st August 2015. For complete portfolio details visit www.hdfcfund.com. ** Average AUM for the quarter ended June 30th , 2015

Total Equity & Equity Related Holdings 97%

Cash, Cash Equivalents and net Current Assets 3%

Average AUM** (Rs. in crores) 1,187.23

Total Number of stocks in the Portfolio 44

Top 10 Holdings

(As a % Of Total Holdings) 50.9

Top 15 Holdings

(As a % Of Total Holdings)

64.0

Portfolio Turnover Ratio (%) 25.6

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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

5

10

15

20

25

30

35

40

45

A u g

9 1

A u g

9 3

A u g

9 5

A u g

9 7

A u g

9 9

A u g

0 1

A u g

0 3

A u g

0 5

A u g

0 7

A u g

0 9

A u g

1 1

A u g

1 3

A u g

1 5

Roll PE (LHS) Average (LHS)

BSE (RHS)

Equity Market Outlook

Markets continue to remain reasonably valued and

make for a compelling investment opportunity for

long term investors

8

• India is one of the biggest beneficiaries of lower commodity prices especially crude oil.India has saved around USD 55bn in crude imports

alone in the 12 months ended July 2015.

• Further, low inflation, improving CAD and

fiscal outlook and rising order backlogs in

some key infrastructure related industries

point to a steadily improving growth

prospects of the economy, especially of the

capex cycle.

• Improving margin outlook of corporates,

likely lower interest rates, softening

commodity prices and reasonable valuations

lead to a positive outlook for equity marketsover the medium to long term.

• In our opinion therefore, there is merit in

increasing allocation to equities (for those

with a medium to long term view) in a phased

manner and to stay invested.

Source: CSO, CLSA

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme.


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Dividend History

^Past performance may or may not be sustained in the future. 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 applicable.). There is no assurance or guarantee to unit holders as to therate/quantum of dividend distribution nor that the dividends will be paid regularly.

Financial Year Record DateNAV per Unit (Rs.)

Cum Dividend

Dividend

Per Unit (Rs.) ^Dividend Yield

2003-04Sep 01, 2003 13.071 1.50 11.5%

Feb 27, 2004 16.122 2.00 12.4%

2004-05 Dec 15, 2004 17.711 2.00 11.3%

2005-06 Dec 30, 2005 23.123 2.50 10.8%

2006-07 Dec 28, 2006 29.681 3.50 11.8%

2007-08 Dec 27, 2007 42.928 4.00 9.3%

2008-09 Feb 26, 2009 17.949 2.25 12.5%

2009-10 Feb 25, 2010 30.043 2.75 9.2%

2010-11 Feb 24, 2011 31.392 3.00 9.6%2011-12 Feb 23, 2012 30.629 3.00 9.8%

2012-13 Feb 21, 2013 29.331 3.00 10.2%

2013-14 Feb 13, 2014 25.019 3.00 12.0%

2014-15 Feb 12, 2015 33.959 3.50 10.3%

The scheme has a consistent dividend track record for the last 12 years

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Why HDFC Growth Fund?

• A well diversified portfolio

• Capitalize on India Growth story by investing in companies that offer superior risk-reward

proposition

• Bottom up approach with focus on undervalued companies, and companies with sustainable

earnings power

• Large cap bias offering stability and liquidity. Controlled exposure to mid caps

• Avoids ‘growth at any cost’ thereby mitigating portfolio risk; strong emphasis on price of purchase

• Ideal for investors looking to build long term wealth

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

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Asset Allocation Pattern

The scheme may seek investment opportunity in the Foreign Securities (max. 20% of net assets) subject to SEBI (Mutual

Funds) Regulations, 1996. The scheme may use derivatives mainly for the purpose of hedging and portfolio balancing (max

20% of net assets including cash) based on the opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.

The scheme will not invest in Foreign Securitized Debt.

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

Types of InstrumentsNormal Allocation

(% of Net Assets)Risk Profile

Equity & Equity related instruments 80 – 100 Medium to High

Debt Securities, Money Market instruments &

Cash (including CBLO/ Reverse Repo) 0 - 20 Low to medium

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Product Features

Type of Scheme Open-ended Growth Scheme

Inception Date (Date of allotment) September 11, 2000

Investment Objective To generate long term capital appreciation from a portfolio that is invested predominantly in equity

and equity related investments

Fund Manager $ Mr. Srinivas Rao Ravuri

Plans HDFC Growth Fund, HDFC Growth Fund- Direct Plan

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

facility.

Minimum Application Amount

(Under Each 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 service rendered by the ARN Holder.

Exit Load:

• In respect of each purchase / switch – in of units, an exit load of 1.00% is payable if units are

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

• No exit load is payable if units are redeemed / switched – out after 1 year from the date of

allotment.

Benchmark S&P BSE SENSEX

$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas

For further details please refer to the Scheme Information Document / Key Information Memorandum of the Scheme available at ISC̀ s and at

www.hdfcfund.com

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Scheme Performance Summary

30 Jun 2014 to 30

Jun 2015

28 Jun 2013 to 30

Jun 2014

29 Jun 2012 to 28

Jun 2013

Since Inception

CAGR (in %)

HDFC Growth Fund 132.127 9.04 41.22 1.95 19.04 1,32,127

S&P BSE SENSEX1

9.31 30.83 11.28 12.75 59,151

CNX Nifty Index2

9.95 30.09 10.67 12.53 57,462

HDFC Infrastructure Fund # 15.857 6.50 71.19 -12.09 6.51 15,857

CNX 500 Index1

11.71 36.64 8.16 8.01 17,560

CNX Nifty Index2

9.95 30.09 10.67 7.90 17,433

HDFC Rajiv Gandhi Equity Savings Scheme - Series I 15.440 7.72 41.50 NA 21.19 15,482

S&P BSE 1001

9.32 33.23 NA 19.53 15,003

S&P BSE SENSEX2

9.31 30.83 NA 18.91 14,828

HDFC Rajiv Gandhi Equity Savings Scheme - Series II 13.814 8.33 NA NA 28.32 13,814

S&P BSE 1001

9.32 NA NA 23.08 13,087

S&P BSE SENSEX 2 9.31 NA NA 20.53 12,738

Scheme

NAV as on 30

Jun 2015

Discrete Returns in % Value of investment of

Rs. 10,000 Since

Inception (Rs.)

Other funds managed by Srini vas Rao Ravuri Fund Manager of HDFC Growth Fund

Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized (CAGR). The above

returns are of growth option. #The Scheme is co-managed by Prashant Jain and Srinivas Rao Ravuri. 1. Benchmark 2. Additional Benchmark

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Disclaimer & Risk Factors

This presentation dated 10th September 2015 has been prepared by HDFC Asset Management Company Limited

(HDFC AMC) based on internal data, publicly available information and other sources believed to be reliable. Any

calculations made are approximations, meant as guidelines only, which you must confirm before relying on

them. The information contained in this document is for general purposes only. The document is given in

summary form and does not purport to be complete. The document does not have regard to specific investment

objectives, financial situation and the particular needs of any specific person who may receive this document.

The information/ data herein alone are not sufficient and should not be used for the development or

implementation of an 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. Past performance may or may not be

sustained in future. 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.

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Thank You

Documents

HDFC Growth Fund - September 2015.pdf