HDFC Short Term Plan

8/8/2019 HDFC Short Term Plan

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PresentingHDFC Short Term Plan

(An Open - Ended Income Scheme)


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Table of Contents

Product Rationale and Positioning

Investment Strategy

Portfolio Composition

Product Features and Assert Allocation Pattern

Fund Suitability and Rating

Disclaimer


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Product Rationale

Structured as an open-ended income scheme with the objective to generateregular income through investments in debt securities and money marketinstruments with short to medium term maturity

Positioned between the liquid fund and the income fund with respect to the riskreturn matrix


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Positioning of the Short Term Plan

RISK

R

ETURN

Liquid Funds

Short Term Plans

Income Funds

Gilt Funds

Ultra Short Term Funds


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Investment Strategy


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Investment Strategy

Focus would be on current yield with an average maturity of approx. 12 to 30months

Predominantly invest in high quality corporate bonds which have a lower marketvolatility

Investment in floating rate securities would be considered in order to mitigateinterest rate risks

Leverage on credit pricing inefficiencies between high credit bonds / securitisedassets

Controlled exposure to GSecs

Maintaining a high quality portfolio


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Portfolio Composition(As on December 31, 2009)


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1.06Government Securities

9.29Cash, Cash Equivalents and Net Current Assets

Average Portfolio Maturity 1.24 Years

Modified Duration: 1.06

Net Assets (Rs. In crores) 2,639.59

58.10Credit Exposures

31.55Commercial Papers (CP) / Certificate of Deposit (CD)

Portfolio Classification by Asset Class (%)


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1.06Sovereign

4.41Cash, Cash Equivalents and Net Current Assets

5.88AA+ / LAA+ & Below

88.65AAA / AAA(SO) / P1+ / P1+(SO) & Equivalent

Portfolio Classification by Rating Class (%)


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Product Features

Growth Option and Dividend Option (Monthly*)

Dividend Option offers Payout and Reinvestment facility.

*25th of every month (or immediately succeeding Business Day if that day is not a Business Day)

Investment Plan / Options

Purchase:

Rs. 5,000 and any amount thereafter

Additional Purchase:

Rs. 1,000 and any amount thereafter

Minimum Application Amount

To generate regular income through investments in Debt Securities and Money Market InstrumentsInvestment Objective

Entry Load: Not Applicable

Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load willbe charged by the Scheme to the investor. Upfront commission shall be paid directly by the investor tothe ARN Holder (AMFI registered Distributor) based on the investors assessment of various factorsincluding the service rendered by the ARN Holder.

Exit Load

In respect of each purchase / switch-in of units, an exit load of 0.50% is payable if units are redeemed/ switched-out within 3 months from the date of allotment.

No exit load is payable if units are redeemed / switched-out after 3 months from the date of allotment.

Load Structure

CRISIL Short Term Bond Fund IndexBenchmark

Anil Bamboli (since January 13, 2004)Fund Manager $

February 28, 2002Inception Date

An Open-ended Income SchemeType of Scheme

$ Dedicated Fund Manager for Overseas Investments: Anand Laddha


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Fund Managers Profile

July 25, 2003 till Date

HDFC Asset Management Company Limited

May 1994 July 2003

SBI Funds Management Pvt. Ltd.

Last Position Held Asst. Vice President

Assignments Held

Collectively over 14 year of experience in Fund Management and ResearchExperience

B. Com

Grad CWA

MMS (Finance)

CFA CFA Institute USA

Educational Qualifications

Mr. Anil Bamboli Senior Fund Manager - Fixed IncomeName and Designation


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Asset Allocation Pattern

LowUpto 5040Money Market Instruments

Low to MediumUpto 33.3360Debt Securities

Risk ProfileNormal DeviationNormal Allocation

(% of Net Assets)

Types of Instruments

It is the intention of the scheme that the investments in securitised debts will not, normally, exceed 60% of the Net Assets of theScheme.In addition to the securities stated in the table above, the scheme may enter into repos / reverse repos in the securities that it will

invest in as may be permitted by the RBI.The scheme may seek investment opportunity in Foreign Debt Securities (max. 50% 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. 50% of netassets) based on the opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.

Under normal circumstances, the asset allocation (% of net assets) of the Schemes portfolio will be asfollows:


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Tax benefits / consequences

HDFC Short Term Plan (the Scheme) is classified as an Income Scheme andhence is not impacted by the increase in DDT applicable for Liquid Schemes /Money Market Mutual Funds

Income distributed by the Scheme will be exempt from Income-tax in the handsof investors

On income distribution if any made by the Scheme, additional income tax ispayable under section 115 R of the Income tax Act, 1961, at the following rates:

Dividend Distribution Tax (%) $Category of Investors

14.1625Individuals / HUF

22.66Others

$ Inclusive of surcharge @ 10%, education cess @ 2% and secondary and higher education cess @ 1%Investors should be aware that the fiscal rules / tax laws may be changed and there can be no guarantee that the

current tax position may continue indefinatelyIn view of the individual nature of tax consequences, each investor is advised to consult his / her professional tax advisor


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Fund Suitability

and Rating


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Why HDFC Short Term Plan?

Ideal investment vehicle in a less volatile interest rate environment

Maintains a high quality portfolio

Moderate MTM and interest rate risk

Emphasis on Risk adjusted returns


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HDFC Short Term Plan is suitable forinvestors:

With an investment horizon of short to medium term

Willing to tolerate moderate MTM and interest rate risk in return for potentiallyhigher returns in comparison to liquid funds


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Fund Rating

HDFC Short Term Plan has been assigned Credit Risk Rating mfAAA by ICRALimited Highest credit-quality rating assigned by ICRA to debt funds

Past performance is no guarantee of future results.Please refer to the last slide on rating methodology.


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DISCLAIMER: This presentation has been prepared and issued on the basis of internal data, publiclyavailable information and other sources believed to be reliable. The information contained in this documentis for general purposes only and not a complete disclosure of every material fact and terms and conditionsand features of HDFC Short Term Plan. The information/ data herein alone is not sufficient and shouldnt

be used for the development or implementation of an investment strategy. It should not be construed asinvestment advice to any party. The statements contained herein may include statements of futureexpectations and other forward-looking statements that are based on our current views and assumptionsand involve known and unknown risks and uncertainties that could cause actual results, performance orevents to differ materially from those expressed or implied in such statements. The recipient alone shall befully responsible / liable for any decision taken on the basis of this presentation. The content of thispresentation is confidential and intended solely for the use of the addressee. If you are not the addressee,or the person responsible for delivering it to the addressee, any disclosure, copying, distribution or anyaction taken or omitted to be taken in reliance on it is prohibited and may be unlawful. No part of thisdocument may be duplicated in whole or in part in any form and/or redistributed without prior writtenconsent of the HDFC Mutual Fund/ HDFC Asset Management Company Limited. The recipient(s) shouldbefore investing in the Scheme(s) make his/their own investigation and seek appropriate professionaladvice.


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THANK YOU

HDFC Short Term Plan

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