HDFC Mid Cap Opportunities Fund 300812

8/12/2019 HDFC Mid Cap Opportunities Fund 300812

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1

August 2012


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Superior Growth

Presence in generally new

& faster growing segments

Ability to gain share due to

new technology, better

MATURITY

DECLINE

Growth

Why Small and Midcap Companies

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products / services etc.

Small base

Time

Focus on Small and Mid Caps here

INCEPTION


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Small in size, big on stature!

Did you know Indias. Company Market Cap.

(INR crore)

Category

Largest Batteries Company Exide Industries Ltd. 10,910 Mid Cap

Largest AC and CommercialRefrigeration Company

Blue Star Ltd. 1,715 Mid Cap

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and refractory products

.

Largest manufacture & exporter ofExplosives in India

Solar Industries India Ltd 1,615 Mid Cap

One of Indias largest ceramics and

abrasives manufacturers

Carborundum Universal

Ltd.

2,835 Mid Cap

Exide Industries Ltd: Largest power storage solutions company in India. Company website www.exideindustries.comBlue Star Ltd: India's largest air conditioning and commercial refrigeration company. Company website www.bluestarindia.com

Vesuvius is a world wide leader in developing, manufacturing and marketing high performance specialty ceramics and refractory

supplier. Company website-www.vesuvius.comSolar Industries Limited. company website www.solarexplosives.comCarborundum Universal Ltd. company website www.cumi-murugappa.comMarket capitalization as on July 31, 2012 (NSE India).Stocks referred above are purely illustrative and are not recommended by HDFC Mutual Fund/ HDFC AssetManagement Company Ltd. The Fund may or may not have any present or future positions in these stocks.

Source: NSE ( www.nseindia.com)


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Relative Index Performance(January 1, 2001 July 31, 2012)

Over a longer period of time, the performance of mid-caps (represented by CNX Midcap) compensates fortheir inherently greater volatility relative to large-caps (represented by S&P CNX Nifty).

S&P CNX Nifty:13.11% CAGR

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Source: National Stock ExchangeAll returns are calculated by HDFC Asset Management Company Ltd.

Returns are of July 31, 2012.Past Performance may or may not be sustained in the future

CNX Midcap Return:

17.13 % CAGR


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PresentingHDFC Mid Cap

5

(An Open-Ended Equity Scheme)


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Product Rationale

Provide investors with exposure to a portfolio constituted primarily of small andmid cap companies

Such a portfolio offers a higher return potential than one comprising primarilylarge cap companies but also carries relatively higher risk, particularly over theshort and medium term

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Small and mid cap companies offer the potential of higher returns due to thefollowing reasons:

Relatively less known by market participants / price discovery by market is not full

Better growth prospects due to presence in a new segment / area that is growing at a faster pace

Ability to gain market share due to new technology / better product / service etc.Room for P/E multiples to expand if the company transitions from a small / mid cap to a large cap


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Market Capitalization Breakup(As on July 31, 2012)

60.00%

70.00%

80.00%

90.00%

49.56% 50.09%

54.33%45.67%

88.5%

HDFC Mid Cap Opportunities Fund offers investors greater exposure to small and mid caps relative to broadbased market indices.

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0.00%

10.00%

20.00%

30.00%

40.00%

.

Large Cap Mid Cap Small Cap

0.35% 0.00%0.0%5.5%

S & P CNX 500 BSE 200 Index HDFC Mid - Cap Opportunities Fund

Source:NSE (www..nseindia.com.) & BSE Ltd (www.bseindia.com)

Mid Cap Companies: Those companies that are either a constituent of CNX Midcap Index or companies that havemarket capitalization of `500 crore or more but do not exceed the market capitalization of the largest constituent of the

CNX Midcap Index.Small Cap Companies: Those companies whose market capitalization is lower than `500 crore.

Large Cap Companies: All stocks other than the above two categories.


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Industry Allocation - % of Net Assets(As at July 31, 2012)

Consumer Durables

Chemicals

Auto Ancillaries

Software

Consumer Non Durables

Pharmaceuticals

Industrial Products

Banks

4.56

4.61

7.14

7.51

8.38

14.96

14.97

15.42

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Others include: Construction Project (0.59%), Telecom - Services (0.49%), Power (0.38%),Textile Products (0.23%), Ferrous Metals (0.14%)

Finance

Oil

Others

Industrial Capital Goods

Petroleum Products

Media & Entertainment

Construction

1.15

1.16

1.83

2.22

2.94

3.14

3.99


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Portfolio Composition(As at July 31, 2012)

% to Net Assets

Total Equity & Equity Related Holdings 93.98

Cash, Cash Equivalents and net Current Assets 6.02

Grand Total 100.00

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, , .

Average Market Capitalization (INR Crore) 6,714

Market Capitalization of Largest Company (INR Crore) 43,226

Market Capitalization of Smallest Company (INR Crore) 105


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Risk Management

Small and Mid Cap companies may carry higher risk than large capcompanies, particularly over the short and medium term

The Scheme endeavors to control risk by adopting the following investmentstrategy:

Aims to maintain a well diversified portfolio (70 stocks as on July 31, 2012)

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The investment in small cap stocks to be restricted to 15% of net assets

The scheme permits investments in companies other than small and mid cap companies and in Debtand Money Market Instruments up to 25% of the net assets

Portfolio concentration (%) as on July 31, 2012.# Benchmark index

## Additional Benchmark index

Scheme CNX Midcap # S&P CNX Nifty ##

Top 5 Stocks 16.25 19.69 33.09

Top 10 Stocks 28.21 31.01 51.50


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SCHEME PERFORMANCE SUMMARY

Date Period

NAV

Per

Unit (`)

Scheme

Returns

(%) ^

CNX

Midcap

(%) #

S & P CNX

NIFTY (%)

##

Scheme

(`)

CNX

Midcap

(`) #

S & P CNX

NIFTY (`)

##

HDFC Mid-Cap Opportunities Fund- Growth Option NAV as at June 29, 2012 ` 16.104HDFC Mid-Cap Opportunities Fund- Growth Option NAV as at June 29, 2012 ` 16.104HDFC Mid-Cap Opportunities Fund- Growth Option NAV as at June 29, 2012 ` 16.104HDFC Mid-Cap Opportunities Fund- Growth Option NAV as at June 29, 2012 ` 16.104

A. Cumulative Performance Value of Investment of `10,000@

B. Discrete 12 Month Returns (%)

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

# Benchmark of the Scheme. ## Additional Benchmark of the Scheme.@shows the current value of `10,000/- invested at the beginning of a given period.

Performance of dividend option under the schemes for the investors would be net of distribution tax applicable.

29-Jun-11 Last 1 Year 16.129 -0.16 -7.72 -5.74 9,985 9,228 9,426 Period

^

Midcap #

NIFTY ##

29-Jun-10 Last 2 Years 14.187 6.53 -4.70 0.22 11,351 9,081 10,043 Jun 29, 11 to Jun 29, 12 -0.16 -7.72 -5.74

29-Jun-09 Last 3 Years 9.074 21.05 9.67 6.33 17,747 13,195 12,022 Jun 29, 10 to Jun 29, 11 13.69 -1.60 6.55

25-Jun-07 Since Inception 10.000 9.96 4.74 4.37 16,104 12,617 12,394 Jun 29, 09 to Jun 29, 10 56.35 45.31 19.70


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Why HDFC Mid CapOpportunities Fund?

Opportunity to invest in a diversified portfolio of small and mid sized companieswith faster growth potential

Provides diversification to an investors overall equity mutual fund portfolio

Attractive valuations of small and mid cap companies

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One of the most experienced fund management and research teams in thecountry with a track record of managing equity assets across market cycles

Strong emphasis on risk management to mitigate the inherently greater volatilityof a portfolio dominated by small and mid cap companies


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Product Features

Type of Scheme Open-ended Equity Scheme

Inception Date (Date of allotment) June 25, 2007

Investment Objective To generate long term capital appreciation from a portfolio that is substantially constituted of equityand equity related securities of small and mid cap companies

Fund Manager $ Mr. Chirag Setalvad (since June 25, 2007)

Options Growth and Dividend. Dividend option offers payout and reinvestment facility.

Minimum Application Amount

(Under Each Option)

Purchase: `5,000 and any amount thereafter

Additional Purchase: `1,000 and any amount thereafter

Load Structure Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the ARN

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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 areredeemed / 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 ofallotment

No Entry/ Exit Load shall be levied on bonus units and units allotted on dividend reinvestment

Benchmark CNX Midcap Index

Additional Benchmark S&P CNX Nifty

$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas since May 10, 2012.


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Asset Allocation Pattern

Under normal circumstances, the asset allocation of the schemes portfolio will be as follows:

Type of Instruments Minimum Allocation

(% of Net Assets)

MaximumAllocation

(% of Net Assets)

Risk Profile ofthe Instrument

Equity and equity related securities ofSmall and Mid-Cap companies of which

Small-Cap companies

Mid-Ca com anies

75

0

100

15 High

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The investment in Securitised Debt will not normally exceed 25% of the net assets of the SchemeThe Scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 25% of net

assets) subject to SEBI (Mutual Funds) Regulations, 1996. The Scheme may use derivatives mainly for the purpose ofhedging and portfolio balancing (max. 20% of net assets) based on the opportunities available subject to SEBI (MutualFunds) Regulations, 1996.

Equity and equity related securities otherthan above

0 25 High

Debt and Money Market Securities 0 25 Low to Medium


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DISCLAIMER: This presentation has been prepared by HDFC Asset Management Company Limited (HDFC AMC) on thebasis of internal data, publicly available information and other sources believed to be reliable. The information contained inthis 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 anyspecific person who may receive this document. The information/ data herein alone are not sufficient and should not beused for the development or implementation of an investment strategy. The same should not be construed as investment

advice to any party. Neither HDFC AMC and HDFC Mutual Fund (the Fund) nor any person connected with them, accepts anyliability arising from the use of this document. The recipient(s) before acting on any information herein should makehis/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for anydecision taken on the basis of information contained herein.

Disclaimer & Risk Factors

SCHEME RELATED DOCUMENTS CAREFULLY.

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Thank You

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HDFC Mid Cap Opportunities Fund 300812

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