1

May 2019

Table of Contents

2

• Market Outlook

• What is Value?

• Value bias

• Multi-Cap Investment strategy

• Diversification

• Resilient performance across cycles

• Portfolio Composition

• Scheme Facts & Asset Allocation

• Scheme Performance

• Disclaimer & Risk Factors

3

Market Outlook

Global Economic Growth

GDP Growth % Inflation%

2018 f 2019 f 2020 f 2018 f 2019 f 2020 f

World 2.9 2.4 2.4 2.9 2.7 2.8

Developed 2.1 1.6 1.4 2.0 1.4 1.8

Emerging 4.5 4.3 4.6 3.6 3.6 3.6

Eurozone 1.8 1.0 1.3 1.8 1.2 1.5

US 2.9 2.4 1.8 2.4 1.7 2.1

China 6.6 6.6 6.5 2.1 1.8 2.0

Japan 0.8 0.9 -0.2 1.0 0.6 1.1

India 7.0 7.2 7.3 3.4 3.5 4.0

UK 1.4 1.2 1.4 2.5 1.7 1.9

Russia 2.3 1.3 1.9 2.9 5.0 4.1

Brazil 1.1 2.6 3.0 3.7 3.8 4.2

F-Forecast Source :HSBC forecasts ,(India data :2018=Apr’19 to Mar’20).

Slow Global Growth expected due to slow down in developed economies

4

Global Liquidity-Background of Quantitative Easing

Since 2010, combined balance sheet of these 3 Central banks increased by ~USD 8 trillion, which

supported global growth. This phase is now ending and may impact growth

US Federal Reserve (US Fed) European Central Bank (ECB)

Bank of Japan (BoJ)

Post Global Financial Crisis (GFC) in 2008, US Fed embarked on Quantitative Easing (QE) to support economic growth.

ECB embarked on asset purchase program in March 2015.

Commenced asset purchase program in 2012.

Over 2010-15, US Fed Balance sheet grew by ~USD 3.0 trillion.

ECB purchased bonds worth ~EUR 2.6 trillion .

BoJ is estimated to have bought bonds worth USD 3 trillion.

With US economy strengthening, US Fed began unwinding its Balance sheet in 2017 and is likely to continue in 2019.

Though bond purchases have ended in 2018, rollover of bonds on maturity is likely.

Likely to continue this program in 2019, though pace might reduce.

5

Indian Economy-Breaking into top 5 economies Indian Economy-Breaking into top 5 economies

Ranks in terms of size of economy*

United States

China

Japan

Germany

India

France*

United Kingdom

20,494 bn

13,407 bn

4,873 bn

4,000 bn

2,716 bn

2,775 bn

2,829 bn

2018 GDP USD

1

3

5

7

9

11

2007 2010 2013 2016 2019 2022

India’s rank to jump from 11th to 5th largest economy in just 12 years

*IMF estimates Source: IMF, *From 2019 onwards figures are IMF estimates

6

Steady economic growth, stable macro economic parameters Steady economic growth, stable macro economic parameters

Source: CEIC, Kotak Institutional Equities; Economic Survey, E-Estimates, ̂ as of 24th ’May19. na – not available

* Calculated by assuming crude prices at USD 70.0 per barrel. With oil at USD 60 / barrel, CAD is estimated to be ~1.7% of GDP

Key Reforms / Initiatives taken over past 4 years have created a favourable economic environment

• Introduction of Goods & Services Tax (GST)

• Introduction of Indian Bankruptcy Code (IBC)

• RERA and Housing for all

• Liberalisation of FDI in various sectors including railways, defense, coal mining, construction, aviation, pharma etc.

• Direct Benefit Transfer (DBT), UJJAWALA – LPG for poor households

• Power - Focus on Transmission and Distribution, Target 24*7 electricity, Saubhagya scheme

• Make in India - Focus on domestic manufacturing and design

• Transparent auctioning of natural resources

Improving macros FY15 FY16 FY17 FY18 FY19E FY20E Real GDP at market price (% YoY) 7.4 8 8.2 7.2 6.8 6.8 Centre's fiscal deficit (% GDP) 4.1 3.9 3.5 3.5 3.4 3.7 Current Account Deficit (CAD) (% GDP) 1.3 1.1 0.7 1.8 2.2 2.1* Balance of Payment 3 0.9 0.9 1.6 0.0 0.6 Net FDI (% of GDP) 1.5 1.7 1.6 1.1 1.2 1.2 Consumer Price Inflation (CPI) (Average) 6 4.9 4.5 3.6 3.4 3.7 India 10 year Gsec Yield % (at yearend) 7.7 7.5 6.8 7.4 7.5 na Foreign Exchange Reserves (USD bn) 341.4 359.8 370 424.4 411.9 420.0^

Revival in capex to support growth

Source: CMIE, RBI, SA: Seasonally Adjusted

8

Revival in capex to support growth

• Consumption expenditure grew faster than capex in FY16 & FY17

• Capex grew faster than consumption in FY18

- It further accelerated in FY19

- This should be positive for economic growth

• Infrastructure capex has improved over last few years led by roads etc.

• Signs of private capex recovery with capacity utilisation increasing

• Cement and Steel majors have announced significant capex

Source: CMIE, RBI, SA: Seasonally Adjusted

8

70.0

72.0

74.0

76.0

78.0

80.0

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Sep

-14

Mar

-15

Sep

-15

Mar

-16

Sep

-16

Mar

-17

Sep

-17

Mar

-18

Sep

-18

Mar

-19

% Rising capacity utilisation driving capex recovery

Capacity Utilisation

Capacity Utilisation (SA)

Long term Average

• Over the past 4 years, average inflation has been ~ 4.2% as compared to 9.4% in 5 earlier years

– Food inflation has fallen significantly to 3.1% from 9.7%

– Driven by high agriculture growth in India and low global food prices (refer slide 11) , food inflation in India has

been low over past 4 years as compared to previous10 years

• Average non-food inflation over past 4 years has been ~5%, significantly lower than ~ 9% in earlier 5 years

Sustained low inflation led by benign food prices

Source: CMIE, Bloomberg, World Bank

Low food inflation has adversely impacted farmers incomes

% 2000 - 2004

2005 – 2009*

2010 – 2014

2015 – 04/2019

Headline CPI 3.9 6.3 9.4 4.2

Non -Food CPI* 4.8 5.6 9.3 5.0

Food CPI* 2.6 9.4 9.7 3.0

Real Agriculture growth 1.7 3.2 4.1 4.0

*details of 2006 not available. Hence Food and non-food CPI is calculated using average of 2005, 2007-09. - CPI-IW is used for the period before 2012

9

-5.0

0.0

5.0

10.0

15.0

20.0

Apr/11 Apr/13 Apr/15 Apr/17 Apr/19

% Average CPI at historical low

Food CPI

Headline CPI

Average Headline CPI

Oil- Changing demand supply dynamics

US, on the back of increase in shale oil production, has become largest oil producer in the world

Source: ^British Petroleum (BP), above chart Includes crude oil, shale oil, oil sands and NGLs (natural gas liquids)

7

8

9

10

11

12

13

14

2009 2010 2011 2012 2013 2014 2015 2016 2017

US Russian Federation Saudi Arabia

Mill

ion

barr

els

per d

ay

Oil demand to peak by 2030 as per BP^ US becomes largest oil producer

• Demand has peaked in developed markets like the US, EU and Japan

• EV push, slowing demand growth in India / China should lead to global

oil demand peaking by 2030

Rising shale oil production, peaking global demand driven by EVs indicates moderate long term trends for oil prices. Positive for India

Million Barrels Per Day

United States EU China India World

1990 17 14 2 1 66 1995 18 14 3 2 70 2000 20 15 5 2 77 2005 21 15 7 3 84 2010 18 14 9 3 87 2016 19 13 12 4 94 2020 19 12 14 5 99 2025 18 11 16 6 103 2030 18 10 16 8 106 2035 16 9 17 9 106 2040 15 8 16 10 105

1990-2016 (CAGR) 0.3% -0.4% 6.7% 5.2% 1.4%

2016-2040 (CAGR) -0.8% -1.9% 1.0% 3.5% 0.5%

10

0

2

4

6

8

10

May

/05

May

/06

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/07

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May

/17

May

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/19 M

illio

n ba

rrel

s pe

r da

y

OPEC Spare Capacity

Changing Macros

11

Source: BIS Monthly REER (61 countries). Data available up to 30-Apr-19

INR close to fair value, adjustment mostly done

80

85

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95

100

105

110

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INR-Real Effective Exchange Rate

• Real Yields in India at historical high • CPI outlook remains benign led by food inflation

• Healthy Differential with US Real yields

• Outlook on headline inflation remains benign • RBI estimates Headline CPI to be below targeted

4% in FY20

• Susceptible to increase in vegetable prices, which have been unusually weak

• US Federal Governor’s comment that Fed will be “patient” in raising rates indicates benign outlook for rise in Fed rates

– US 10Y yields have come off materially from the high made in Nov’18

– Low probability of rate hike in 2019

Real Yields = Month-end 10Y GSec Yield and CPI; Updated till 30th April 19. CPI-IW is used to calculate real yields for period before 2012

Source: CMIE, Bloomberg, RBI, Kotak Institutional research.

Interest Rates Outlook:Forces favouring lower Interest rates

12

-10.0 -8.0 -6.0 -4.0 -2.0

- 2.0 4.0 6.0

Apr/03 Apr/07 Apr/11 Apr/15 Apr/19

%

India's Real Yields at near historic high

-12.0 -10.0

-8.0 -6.0 -4.0 -2.0

- 2.0 4.0 6.0 8.0

10.0

Apr/03 Apr/07 Apr/11 Apr/15 Apr/19

%

Spread between US and India Real Yields

2.00

2.25

2.50

2.75

3.00

3.25

May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19

% US 10 Year Yield

-1.00

1.00

3.00

5.00

7.00

Mar/15 Oct/15 May/16 Dec/16 Jul/17 Feb/18 Sep/18 Apr/19 Nov/19

%

Inflation outlook remains benign

Data beyond April 2019 are RBI estimates as per Monetary Policy Report – April 2019

Global Equity Markets deliver negative returns in 2018

Major equity markets delivered negative returns

• Impact of high base given the strong returns of past 2 years

• Escalation of Trade war between China and US

• Emerging markets faced capital outflows on strong USD and unwinding of QE

* Global Market Cap to GDP ratio is calculated using world market cap from bloomberg and GDP from world bank. For 2018, current market cap is divided by world bank’s estimated global GDP.

^Returns for Calendar year 2018; Returns as on 31st Dec 2018. All returns are calculated in local currency. Source: Bloomberg, World Bank, MFI;; LTA – Long term average

India’s equity market (Nifty 50) significantly outperformed despite delivering low returns

-7.1

-9.8

-12.0

-12.1

-12.4

-18.3

S&P 500 (US)

Strait Times (Singapore)

CAC 40 Index (France)

Nikkei (Japan)

FTSE (UK)

DAX (Germany)

%

Developed Markets^

15.0

3.1

-2.5

-5.9

-8.6

-13.5

-17.3

-24.7

Ibovespa Sao Paulo Index (Brazil)

Nifty 50 (India)

Jakarta Composite Index (Indonesia)

KLSE (Malaysia)

Taiwan Weighted (Taiwan)

HangSeng (Hong Kong)

Kospi (South Korea)

SSE Composite (China)

%

Emerging Markets^

50.0

60.0

70.0

80.0

90.0

100.0

110.0

2018E 2015 2012 2009 2006 2003

% Global market Cap to GDP Ratio

corrected sharply in 2018*

World Market Cap to GDP Ratio

LTA

13

2018 - A watershed year for Indian Equity Markets

• Strong domestic flows reduced impact of FII selling and thus volatility

• Since Jan 17, FII were net sellers (greater than USD 2.5 bn on 90 days cumulative basis) on three occasions but unlike

in the past, Indian equity markets held up well on each of these three occasions as seen in table below

• This was due to sustained domestic flows into equity funds – currently (Rs 10,000 crs a month)^

90 Days Period ending

FII Outflows (In USD Bn)*

Indian Market capitalization (USD bn)

FII outflows as % of Market cap

Fall in Sensex #

03-Apr-08 -4.5 1,270 0.4% -10.9%

03-Dec-08 -5.7 543 1.1% -43.6%

24-Oct-11 -2.5 1,208 0.2% -13.5%

04-Sep-13 -3.9 917 0.4% -5.7%

22-Jan-16 -3.1 1,362 0.2% -13.1%

05-Jan-17 -5.1 1,589 0.3% -1.2%

24-Oct-17 -4.2 2,154 0.2% 8.9%

14-Nov-18 -5.6 1,956 0.3% -0.7%

A shift in power in capital markets from offshore players to domestic individual investors !

Source: AMFI; ^considering the average flows in past 6 months ending Dec’ 18

Source: Bloomberg * Maximum outflow on a 90 days rolling period and greater than USD 2.5 Bn.

# 6 months returns till date

14

P/E Expansion (NIFTY 500)

15

Source: Bloomberg Data as on May 31, 2019

Blended Forward P/E Average since Aug’05 = 14.7

• 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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5.0

10.0

15.0

20.0

25.0

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06

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-07

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07

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16

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Sep-

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18

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Sep-

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Jan-

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May

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NIFTY 500 Blended Forward P/E Average

14.7

Earnings Yield Minus 10 Year G-Sec

16

Source: Bloomberg . Calculation reflects the difference between the estimated earnings yield and the prevailing 10 year G-Sec benchmark. For the purpose of estimating the earnings yield, the estimated forward P/E of the NIFTY 500 Index has been used. Data as on May 31, 2019.

The gap between earnings yields and 10 year G Sec yield is now closer to 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 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00

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

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

Earnings Yield-10 Year G-Sec Average

Improving growth outlook

17

FY13 FY14 FY15 FY16 FY17 FY18

NIFTY EPS

CAGR 13-18

FY19E FY20E FY21E NIFTY EPS CAGR 18-

21E

NIFTY EPS 377 410 398 384 439 449

3.5 482 617 728

17.5 Growth % 8.8 -2.9 -3.5 14.4 2.0 7.3 28.0 18.0

NIFTY50 EPS growth: The worst is behind, strong improvement ahead

Source: Kotak Institutional Equities

NIFTY 50 PAT growth (CAGR %)

Sector Mar 18-21E

Consumer Discretionary 8.7

Consumer Staples 13.2 Corporate Banks & Financials 160.8

Energy 10.4

Health Care 24.4

Industrials 14.1

Information Technology 11.5

Materials 7.9 Retail Banks & Financials 18.8

Utilities 13.7

Communication Services -50.4

Total 17.5

Capital Goods

• Weak capex in economy

• Stretched working capital cycle and high interest rates

Corporate Banks & Financials

• Significant increase in stress in steel, power & infra sectors

• Higher provisioning on NPAs impacted profitability sharply

Healthcare

• New launches in the US scaling up & cost reduction

Corporate Banks & Financials

• Recognition phase of NPAs is largely over, GNPA provisioning is at 57% as on Dec 18

• With falling slippages and increasing resolution of NPAs provisioning costs are expected to fall sharply

Reasons for weak NIFTY Earnings growth in FY13-18

Earnings growth in FY18-21E expected to be driven by

18

HDFC Capital Builder Value Fund

• 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 ?

19

A Multi-Cap Investment Strategy

20

• No Market cap bias Being a multi-cap fund benchmarked to the Nifty 500 there is an attempt to have good representation

across 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 22).

• 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/B of stocks in the NSE 500 Index (Refer slide 21).

• 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 on the market conditions.

Value Biased

21

What has worked ?

• Bottom-up value stock picking across sectors has generated alpha over benchmark in 18 out of 24 financial years.

(Refer slide 26)

• The fund has maintained a value bias and there is no material change in strategy post the scheme re-categorization as

a Value fund w.e.f. May 23, 2018.

What has worked in the past (value bias) to continue going forward

0.00

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70.00

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90.00

Jun-

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Jun-

18

Sep-

18

Dec

-18

Mar

-19

% of portfolio below median PE or PB 50%

Risk management through wide sectoral diversification

22

The Scheme has maintained exposure to at least 13 sectors in the benchmark (Nifty 500) over last 4 fiscal years.

Outperformance generated over benchmark (Refer slide 26) 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 these stocks/sectors. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.

Alpha generation with diversification similar to benchmark

23

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

Sorted descending as per Mar-19 Overweight/ Underweight

Sectoral presence similar to benchmark, coupled with bottom up stock picking has generated consistent alpha over the years (Refer slide 26)

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 these stocks/sectors. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.

Risk Management through portfolio diversification

24

Average Top 10 Holding (%) since December 2015 = 41%

Average Number of stocks since December 2018 = 56

Consistent approach to diversification

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Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

num

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of s

tock

s

Top

10 h

oldi

ng (

%)

Top 10 holding (%) Number of stocks

A Consistent Performer

25

Internal study of peer set #

• 3 & 5 year CAGR rolling returns on a daily basis analysed for the past 5 years for each day falling during the period 31st May 2014 to 30th May 2019

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

• HDFC Capital Builder Value Fund outperformed the category median in 99.8% and 99.9% instances for 3 year and 5 year investment horizon respectively.

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 1228 99.8 18.7% 17.0%

5 Year Rolling Returns 50 1228 99.9 17.0% 15.2%

Why look at Consistency? • A fund having large outperformance in a particular financial year may not sustain the same year after year. Hence, trying to predict 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 median returns 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 as of 31-Jan-19. Excludes funds which had a small/mid cap bias prior to scheme re-categorization (Source: B&K Securities). Data as on 30th May 19 May 2019. Category median refers to the mid-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 investment advice 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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30

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5 Y

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Rol

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%

CA

GR

HDFC Capital Builder Value Fund - Growth Median

Risk Management through portfolio diversification

26

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. There is 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 to availability 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

Record 2004 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-17 Mar-18 Mar -19

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. For complete performance details refer slide 33.

Resilient performance across market volatility periods

27

P1-Mid 90s Crash:-01-Feb-94 to 22-Nov-96 P8- Eurozone debt crisis:-09-Nov-10 to 30-Jan-12 P2- Tech Bubble peak:-22-Nov-96 to 11-Feb-00, P9-Policy paralysis:-30-Jan-12 to 31-Aug-13 P3- Tech bubble meltdown -11-Feb-00 to 21-Sep-01, P10-Oil Price correction:-31-Aug-13 to 31-Mar-15 P4- 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-18 P5- India discovery/Emerging market rally:-14-Jan-04 to 08-Jan-08, P12-Since Jan’18:-31-Jan-18 to 31-May-19 P6- 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 33. 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 P12 Capital Builder Value -17% 35% -30% 59% 45% -57% 94% -18% 5% 50% 17% -2% NIFTY 500 TRI # -19% 16% -46% 65% 38% -58% 81% -19% 4% 37% 14% 2% NIFTY 50 TRI ## -12% 12% -35% 47% 36% -53% 73% -15% 6% 31% 11% 7%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

Capital Builder Value NIFTY 500 TRI # NIFTY 50 TRI ##

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Scheme Facts and Performance

Scheme Facts

29 29

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

Plans Direct Plan Regular Plan

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

Minimum Application Amount (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 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. 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 Investor Service Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Amar Kalkundrikar

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A SIP of Rs 10,000@ in HDFC Capital Builder Value Fund = Rs 4.16 cr today^

@ Assuming Rs 10,000 invested systematically on the first business day of every month since inception (Feb 01,1994). ^Returns as of Jan 31, 2019. Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. Different Plans viz. Regular Plan and Direct Plan have a different expense structure. The above investment simulation is for illustrative purposes only. The AMC / mutual fund is not guaranteeing or promising or forecasting any returns.

30

SIP Investments Since Inception 15 year SIP 10 year

SIP 5 year SIP 3 year SIP 1 year SIP

30

Portfolio Composition (As of May 31, 2019)

31 ** Risk Free Rate 6.00% (Source FIMMDA, MIBOR) For complete portfolio details please visit www.hdfcfund.com

Particulars % To Net Assets

Top 10 Equity And Equity Related Holdings 43.09%

Total Equity & Equity Related Holdings 96.30%

Cash, Cash Equivalents And Net Current Assets 3.70%

Assets Under Management (Rs. In Crore)* 4685.972

Standard Deviation** 3.908%

Beta** 0.697

Sharpe Ratio** 0.174

31 31

Asset Allocation Pattern

32 32

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

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 related instruments

65-100 High

Debt Securities (including securitised debt) and money market instruments

0-35

Low to Medium

Units issued by REITs and InvITs

0-10 Medium to High

Non-convertible preference 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 2.66 6.46 12.43 10,266 10,646 11,243

Last 3 Years 14.10 14.35 14.99 14,854 14,954 15,203

Last 5 Years 13.84 12.35 11.92 19,137 17,910 17,571

Since Inception 14.39 NA NA 301,458 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 to 19.03.17) 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 than 1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of performance. 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. Returns as on 31st May 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 year CAGR (in %) CAGR (in %)

Miten Lathia manages total 2 schemes

HDFC DYNAMIC PE RATIO FUND OF FUNDS 27-Jun-14 7.86 11.33

9.61

NIFTY 50 Hybrid Composite Debt 65:35 Index 11.95 12.54 10.97

Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices. The above returns are of Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. # The scheme is co managed by Miten Lathia (Equities) and Anil Bamboli (Debt). Returns as on 31st May, 2019. 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. 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.

34

Scheme Performance Summary

The presentation dated 14th June 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 relying on them. The information given is for general purposes only. Past performance may or may not be sustained in 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 the particular needs of any specific person who may receive this information. The information/ data herein are not investment advice and 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. Stocks/Sectors referred herein are illustrative and not 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 returns on any investments. The data/statistics are given on the basis of information which is already available in publicly accessible media to explain general market trends in the securities market. The same should not be construed as any research report/research recommendation to buy or sell any security covered under the respective sector/s. Neither the 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

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