HDFC Children’s Gift Fund

Empower and strengthen your child’s future, today. Don’t let �nances get in the way of your child’s dream!

Please refer page 20 for product labelling

An open ended fund for investment for children having a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier)

October, 2020

2

“Education is not preparation for life, education is life itself.” - John Dewey

3Higher education is not the privilege of the elite. Do you agree?

How Much Will It Cost You Tomorrow?

Source: Indian Institute of Management – Ahmedabad, IIT – Bombay, Manipal University – Mangalore.Costs depicted based on the education costs for the Post Graduate Programme in Management at Indian Institute of Management – Ahmedabad, B. Tech 4 year programme at IIT – Bombay (Fees extrapolated for 4 year course) & MBBS program at Manipal University - Mangalore. 2035 �gures based on in�ation assumed at 10% p.a. Monthly investment needed to build such corpus by 2035 calculated based on a 15 Year SIP investment returning 12% p.a. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital.

MBA 28 Lakh 116.9 Lakh

Engineering 9.5 Lakh 39.6 Lakh

Medical 64.4 Lakh 2.69 Crore

Rs. 23,412

Rs. 7,943

Rs. 53,890

2020 2035 Monthly savings needed for professional education in 2035

The above �gures are rounded off to the nearest hundred.

4“The roots of education are bitter, but the fruit is sweet” - Aristotle

How Much is Enough?¦ With rising education costs across all professional degrees,

saving for education becomes even more imperative

¦ Child care costs also include additional costs of housing, transportation, clothing, food, health care, etc.

¦ Long term equity investing is a suitable medium to combat ever increasing costs

The above chart is only an illustrative example to show rising cost of education and not based on actual data.

Cost of Education is rising much faster than in�ation

Cost of education

Inflation

5What If your Child Aspires To Go To Harvard? Are You Prepared?

Prepare For The Best¦ The best professional degree courses in India cost up to

Rs. 28 lakh*

¦ Similar courses abroad can cost signi�cantly more

¦ Premium institutes have the pricing power and in�ation will take these numbers higher year after year

¦ The cost of education should not come as a surprise to you

¦ So, prepare for the best, though you may have options to choose from!

¦ Save regularly with a goal in mind

¦ Finances should not get in the way of your child’s dreams

* Fees for a 2 year (2020) program in IIM Ahmedabad. Source : IIM Ahmedabad

Source: Internal CalculationThe above is an illustration using assumed rate of return of 12% p.a. (monthly compounding) only to explain the concept of Power of Compounding. It does not forecast or guarantee the returns in any mutual fund scheme.

The road to Rs. 50 Lakhs!

¦ Anirvan starts early and saves Rs. 10,008/month for 15 years

¦ Nicole and Sachin are late starters and will have to contribute a higher amount on a monthly basis to accumulate the same amount as Anirvan

¡ Nicole: Rs. 21,735/month for 10 years

¡ Sachin: Rs. 61,222/month for 5 years

The later you start, the less your money works for you!

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The Cost of Procrastination - Don’t delay the inevitable

Anirvan

Nicole

Sachin

` 36,73,334 ` 13,26,666

` 26,08,257 ` 23,91,743

` 18,01,513 ` 31,98,487

Contributions Earnings

Goal Based Investing

¦ Targets a speci�c amount of corpus for your child’s education

¦ Money is earmarked for a speci�c purpose. For instance, investors do not touch PF corpus for buying a car (as the money is earmarked for retirement)

¦ Investors tend to rationalize their spending on other personal / social requirements

¦ Investing with a goal brings discipline

¦ Balances your current aspirations vs future requirements. A sizeable corpus can be built over time

¦ Mental Accounting is involved, ensuring long-term holding of investments

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Goal based Investing towards Child’s Education

Build a corpus meant for your Child’s Education!

Investing without a Goal

¦ Savings are kept in a “common savings pool” without any goal in mind

¦ Money gets withdrawn from the “common savings pool” for all �nancial requirements

¦ Tend to overspend on other commitments

¦ What is left after spending gets saved

¦ What is left out of the “common savings pool” may not be adequate to tackle speci�c goals like children’s education

¦ Investors can get irrational in allocation of funds for various purposes and may resort to premature withdrawals

¦ “Mental Accounting” is an economic concept as per which investors divide their current and future savings into separate, non-transferable portions affecting their consumption decisions and other behaviours

¦ Mental accounting leads to long term thinking and �nancial discipline

¦ Since children`s education expenses are substantial and important, a corpus meant for the same needs to be saved separately

¦ Such investments are to be withdrawn only when nearing the goal

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Mental Accounting

Parents want their children to have a better life than theirs; Education is the foundation for a better life.

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Equities - A Powerful tool against In�ation

¦ Equities have delivered higher returns than other Asset Classes! ¦ Aren’t equities risky? Having a short term view or investing directly in equities without adequate knowledge can be risky. Volatility reduces with time in equity. Hence choose the right mutual fund scheme.

¦ Should I put all my money in equities? Not entirely. When you have a lot of time to achieve your goals, invest predominantly into equities. As you near your goals, you need to shift gradually to lesser volatile asset class like debt.

¦ How do I invest in equities? Lumpsum investments or Sytematic Investment Plan with a Mutual Fund. As your income increases, do a SIP Top Up.

¦ Have equities beaten in�ation? Equities have beaten in�ation and have compounded faster than other major asset classes over the last 20 years.

Returns from March 31,1980 to September 30, 2020.

Source: Bloomberg, RBI Handbook of statistics on Indian Economy, MFI, World Gold Council. #Average in�ation is shown for comparison with returns from various asset classes.

Above asset classes are not strictly comparable. Above chart is for illustrative purpose only.Past performance may or may not be sustained in the future.

(% CAGR Returns)

4.0 8.0 12.0 16.0

Equity (S&P BSE SENSEX)

Gold

-

Bank FD

Avg Inflation#

2.0 6.0 10.0 14.0

15.1

9.0

8.2

7.8

Professional Fund Management

¡ Expert fund management

¡ In depth research

¡ Conscious portfolio management to optimize returns

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How Mutual Funds help?

Long term �nancial goal planning

¡ Meet �nancial goals by investing in products catering to a wide array of investment goals

¡ Options to invest regularly in small doses or lump sum

Other bene�ts

¡ Diversi�cation even with a small investment

¡ Liquidity

¡ Tax bene�ts

SIP

¦ Investments at a prede�ned monthly or quarterly frequency

¦ For a salaried individual, the income is monthly and so should be the savings

¦ Ideal way to develop a savings habit

¦ As the income increases, do SIP Top Up

¦ This would inculcate discipline as to spending what is left after saving

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SIP or Lump Sum?

Can there be a better gift to your child than investing very early on in their lives?

Lump Sum

¦ Lump sum when you receive large �ows like a bonus

¦ Ad hoc investments on special occasions like festivals or your child’s birthday

¦ Have a target corpus in mind

¦ Start early and invest regularly toward the goal - Keep time on your side!

¦ Focus long-term and stay invested

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Strategy to Smart Investing

Children grow fast; Make sure your Savings do too!

Presenting...

HDFC Children’s Gift FundAn open ended fund for investment for children having a lock-in for at least 5 years

or till the child attains age of majority (whichever is earlier)

^

^with effect from May 23, 2018, the Scheme has undergone changes in fundamental attributes and other changes.

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HDFC Children’s Gift Fund - Weathered it all

Source: Publicly available informationstData as on 30 September 2020. ̂ The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices (Equity Assets).

*NIFTY 50 Hybrid Composite Debt 65:35 Index is available from September 01, 2001.Note - Values for the HDFC Children's Gift Fund and additional benchmark, i.e., NIFTY 50 TRI, have been rebased to Rs. 10 since March 02, 2001, i.e., the inception of the fund. The benchmark, NIFTY 50 Hybrid Composite Debt 65:35 index has been rebased to 10.07 since its inception (September 1, 2001), which is the rebased value of the fund as on that date.

HDFC Children’s Gift Fund - Through the Tough Times

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QE3 Taper Worry US Rate Hike, Slowdown in

US & Commodity crash

COVID-19 Pandemic

Demonetization, GST, Brexit,

Trump as US President

Clear majority for BJP

2G Scam, Coal Scam, etc.

nd2 Term for UPA

Lehman Crises,

Satyam Scam

BJP Loses

9/11, KP Scam

HDFC Children's Gift Fund

Rs. 1,63,348

NIFTY 50 TRI

Rs. 1,13,692

NIFTY 50 Hybrid Composite

Debt 65:35 Index

Rs. 1,06,457

40

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100

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¦ Meant for all children below the age of 18 years

¦ Healthy allocation towards equities which is an ideal long-term asset class coupled with debt allocation which provides stable returns

¦ Personal accident insurance for parent/guardian of up to Rs 10 lakhs*

¦ Investments can be made on a lump sum or SIP basis and there is no limit to the number of transactions in any given year. No maximum limit on investment

¦ Easy hassle free withdrawal options

¦ Bene�t from the long term potential of equity while maintaining the stability of debt

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HDFC Children’s Gift Fund

“Education is the most powerful weapon which you can use to change the world” - Nelson Mandela

*Subject to the terms and conditions of the Scheme & the Group Personal Accident Insurance Policy.

¦ Investment will be made in the name of a minor

¦ Parent/Guardian will operate the folio till the child attains majority

¦ No limit on investment

¦ Investment can be made as many times till the minor turns 18

¦ In-built Personal Accident cover up to Rs. 10 lakhs!*

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Key Features

“Education gives you wings to �y” - APJ Abdul Kalam

Who can invest?

Ÿ ParentsŸ Grand ParentsŸ FriendsŸ Other Relatives

*Subject to the terms and conditions of the Scheme & the Group Personal Accident Insurance Policy.

¦ Covers the Parent / Legal Guardian (up to the age of 80 years) of the Unit holder

¦ Cover equivalent to 10 times the cost value of the outstanding units subject to a maximum of Rs.10 lakh per parent / legal guardian across all folios

¦ Valid from the date of allotment of units till the unit holder attains 18 years of age or date of redemption whichever is earlier

¦ Insurance premium will be borne by HDFC Asset Management Co. Ltd.

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Free Personal Accident Insurance Cover of up to Rs. 10 Lakh*

For further details on the terms and conditions of the policy, please refer to Scheme Information Document.*Subject to the terms and conditions of the Scheme & the Group Personal Accident Insurance Policy.

Perf

orm

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Period Scheme Returns (%) $ Benchmark Returns (%)#Additional Benchmark

Returns (%)##

Value of investment of ` 10,000

Scheme (`) $ Benchmark (`) #Additional Benchmark

(`)##

Last 1 Year 3.86 4.84 -0.97 10,386 10,484 9,903

Last 3 Years 5.25 7.59 6.02 11,662 12,458 11,921

Last 5 Years 8.86 9.10 8.53 15,292 15,466 15,064

Since Inception* 15.32 N.A. 13.21 1,63,348 N.A. 1,13,692

Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of balanced nature of the scheme where a portion of scheme’s investments are made in debt instruments. Adjusted for $

Bonus units declared under the Scheme. Inception Date: March 02, 2001. The Scheme is managed by Mr. Chirag Setalvad since April 02,2007. Benchmark Index: NIFTY 50 Hybrid Composite Debt 65:35 Index.* #

## Additional Benchmark Index: NIFTY 50 TRI.

~ Open Ended Equity Linked Savings Scheme with a lock-in period of 3 years. The Scheme does not accept any further subscriptions. The above returns are of Regular Plan - Growth Option. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the basis of since inception returns vis-à-vis the benchmark. In case the benchmark is not available on the Scheme’s inception date, the returns for the concerned scheme is considered from the date the benchmark is available. 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. The Scheme is co-managed by Mr.Chirag Setalvad (Equities) & Mr. Shobhit Mehrotra (Debt).^

Performance of other funds managed by Chirag Setalvad, Fund Manager of HDFC Children’s Gift Fund

(who manages total 8 schemes which have completed one year)

Performance of Top 3 schemes managed by Chirag Setalvad

Managing Scheme since Last 1 Year (%) Last 3 Years (%) Last 5 Years (%)

HDFC Small Cap Fund 28 June 2014 -2.24 0.11 8.17

Benchmark - NIFTY Smallcap 100 TRI 5.20 -7.49 3.17

HDFC Long Term Advantage Fund ~ 2 April, 2007 -5.72 2.46 8.35

Benchmark - S&P BSE SENSEX TRI -0.44 8.00 9.15

HDFC Mid-Cap Opportunities Fund 25 June, 2007 5.48 0.84 7.80

Benchmark - NIFTY Midcap 100 TRI 6.91 -1.16 6.64

Performance of Bottom 3 schemes managed by Chirag Setalvad

Managing Scheme since Last 1 Year (%) Last 3 Years (%) Last 5 Years (%)

HDFC Retirement Savings Fund - Hybrid- Equity Plan ^ 25 Feb, 2016 2.41 4.64 N.A.

Benchmark - NIFTY 50 Hybrid Composite Debt 65:35 Index 4.84 7.59 N.A.

HDFC Retirement Savings Fund - Equity Plan ^ 25 Feb, 2016 0.91 2.61 N.A.

Benchmark - NIFTY 500 TRI 1.02 3.97 N.A.

HDFC Retirement Savings Fund - Hybrid-Debt Plan ^ 26 Feb, 2016 6.27 5.05 N.A.

Benchmark - NIFTY 50 Hybrid Composite Debt 15:85 Index 10.27 8.43 N.A.

Common notes for all the above tables:

Past performance may or may not be sustained in the future. TRI - Total Returns Index. N.A. - Not Applicable. Returns as on September 30, 2020. Different plans viz. Regular Plan and Direct Plan have different expense structure. The expenses of the Direct Plan under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. Returns greater than 1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of above performance(s). Performance of dividend option under the schemes for the investors would be net of Distribution Tax, if any .

SIP since inception of Rs.10,000 invested systematically on the first business day of every month (total investment ~` 23.50 lakh) in HDFC Children's Gift Fund would have grown to ~` 1.17 crore by September 30, 2020 *

(refer below table).

CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). The above investment simulation is for illustrative purposes only and should not be construed as a

promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan.

SIP Investments Since Inception* 15 Year SIP 10 Year SIP 5 Year SIP 3 Year SIP 1 Year SIP

Total Amount Invested ( in 000)` 2,350.00 1,800.00 1,200.00 600.00 360.00 120.00

Market Value as on September 30, 2020 ( in 000) ` $ 11,671.47 5,108.56 2,152.79 718.81 388.42 129.53

Returns (%) $ 14.44 12.82 11.25 7.16 5.00 15.09

Benchmark Returns (%) # N.A. 9.85 9.54 8.47 7.07 11.61

Additional Benchmark Returns (%) ## 13.10 9.72 9.12 7.00 3.74 10.15

SIP Performance - HDFC Children's Gift Fund - Regular Plan - Growth Option

HDFC Children's Gift Fund - Performance - Regular Plan - Growth Option NAV as on September 30, 2020 ` 125.652 (Per Unit)

$ Dedicated Fund Manager for Overseas Investments: Mr Chirag Dagli.For further details, please refer to the Scheme Information Document.

Fund FactsInvestment Objective To generate capital appreciation / income from a portfolio of equity & equity related instruments and debt and money market instruments.

There is no assurance that the investment objective of the Scheme will be realized.

Inception Date (Date of allotment) March 2, 2001

Fund Manager $ Mr. Chirag Setalvad

Investment Plan Regular Plan, Direct Plan.

Investment Options Growth Option

Minimum Application Amount Purchase : Rs. 5,000/- and any amount thereafter

Additional Purchase : Rs 1000/- and any amount thereafter

Load Structure Entry Load:

Exit Load:

- For investments until May 22, 2018

For Units subject to Lock-in Period: NIL

For Units not subject to Lock-in Period:

- For investments on or after May 23, 2018: NIL

Lock in Period Existing investments by investors including SIP/ SWAP registrations, etc (until May 22, 2018):

Lock-in period (if opted), shall be later of

- 3 Years from the date of allotment

- Until the Unit Holder (being the beneficiary child) attains the age of 18 years

Fresh investments by investors including SIP/ SWAP registrations, etc (effective May 23, 2018):

Lock-in period will be compulsory. Lock-in period shall be earlier of

- 5 Years from the date of allotment; or

- Until the Unit holder (being the beneficiary child) attains the age of majority (i.e. completion of 18 years)

Benchmark Index NIFTY 50 Hybrid Composite Debt 65:35 Index

3% if the Units are redeemed / switched-out within one year from the date of allotment, 2% if the Units are redeemed / switched-out between the

first and second year of the date of allotment, 1% if Units are redeemed /switched-out between the second and third year of the date of allotment.

Nil if the Units are redeemed / switched -out after third year from the date of allotment.

No Entry / Exit Load shall be levied on bonus units.

In case of Systematic Transactions such as Systematic Investment Plan (SIP), Systematic Withdrawal Advantage Plan (SWAP), etc.

Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.

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.

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HDFC Children’s Gift FundAn open ended fund for investment for children having a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier)

^

19

Asset Allocation

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.

For complete details please refer SID (Scheme Information Document)/KIM (Key Information Memorandum) available on the website www.hdfcfund.com or with Investor Service Centers (ISCs)/Distributors.

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

Type of Instruments

Minimum

Allocation

Maximum

Allocation

Risk Profile

(% of Total Assets)

Equities and Equity related

Instruments65 80 High

Debt Securities (including

securitised debt) and money

market instruments

20 35 Low to Medium

Units issued by REITs &

InvITs0 10 Medium to High

Non-convertible preference

shares

0 10 Low to Medium

1) The Scheme may invest up to 35% of its total assets in foreign securities.

2) The Scheme may invest upto 100% of its total assets in Derivatives.

^with effect from May 23, 2018, the Scheme has undergone changes in fundamental attributes and other changes.

Fund Facts (continued)

Product Labelling

20

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

HDFC Children’s Gift Fund is suitable for investors who are seeking*

Ÿ Capital appreciation over long term

Ÿ Investment in equity and equity related instruments as well as debt and

money market instruments

Riskometer

Disclaimer

21

thThe presentation dated 20 October 2020 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.