HDFC Top200 Fund April 302011

8/4/2019 HDFC Top200 Fund April 302011

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PresentingHDFC Top 200 Fund

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(An Open-Ended Growth Scheme)As on April 30, 2011


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Table of Contents

Product Rationale and Investment Strategy

Portfolio Composition

Product Features and Asset Allocation Pattern

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,

Fund Suitability

Disclaimer


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Investment Styles

Active Management: Refers to the use of a human element, such as a singlemanager, co-managers or a team of managers, to actively manage a fundsportfolio. They rely on analytical research, forecasts and their own judgement

and experience in making investment decisions. They believe it is possible toprofit from the stock market through any number of strategies that aim toidentify mispriced securities

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ass ve anagement: n nvest ng strategy t at m rrors a mar et n ex andoes not attempt to beat the market


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Product Rationale

In the nature of an Index + Fund (active + passive); internal guidelines ofmatched positions with the index (refer slides 7&8)

Focus on GARP (growth at reasonable price) for active positions

Limited exposure to mid-caps; avoids large individual positions in mid-caps

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Offers portfolio diversification comparable to market indices


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Investment Strategy

The investment portfolio for equity and equity linked instruments will beprimarily drawn from the companies in the BSE 200 Index

The fund may also invest in listed companies that would qualify to be in the top200 by market capitalisation on the BSE even though they may not be listed onthe BSE

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This includes participation in large IPOs wherein the market capitalisation of thecompany based on issue price would make the company a part of the top 200companies listed on the BSE based on market capitalisation


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Investment Strategy

The fund seeks to invest in higher quality, competitive, sustainable businessesby primarily restricting the equity portfolio to the BSE 200 Index scrips; this isintended to reduce risks while maintaining steady growth

Focuses on secular growth companies compared to cyclicals; this strategyreduces risk on one hand and improves chances of positive returns over thelong term

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Investment Strategy(Matching Principle)

There are primarily two sources of returns for a fund Index returns andreturns from active management; over periods of time, index returns areexpected to form a large portion of total returns

The fund targets to capture a large part of index returns by maintaining around60% of the portfolio in matched positions with the BSE 200 index; positions arenot matched on a stock-to-stock basis but on an aggregate level

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Active management in the scheme is done on two level:Selection of matched postions

Selection of the balanced portfolio

Selection of the matched positions with the index and the selection of other

active positions are aimed to deliver returns above the BSE 200 index withoutincreasing the risk to the levels of active managed funds


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Matching Explained(An illustration)

Name of the Company Weight in BSE 200 (%) % of NAV Matched Weight (%)

ONGC 2.70 1.86 1.86

HDFC 3.56 3.25 3.25

SBI 3.16 4.57 3.16

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. . .

|

|

|

200

|

|

|

~ 50

~ 60%

Stocks referred to in the pictorial above are purely illustrative and are not recommended by HDFC Mutual Fund / HDFCAsset Management Company Ltd. The Fund may or may not have any present or future position in these stocks.


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Portfolio Composition

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,


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Minerals/Mining

Power

Oil

Auto

Pharmaceuticals

Petroleum Products

Software

Consumer Non Durables

Banks

3.25

4.00

4.25

5.24

7.40

8.15

10.24

10.42

22.65

Industry Allocation - % of Net Assets(As at April 30, 2011)

Non - Ferrous Metals

Ferrous Metals

Telecom - Services

Construction Project

Finance

Gas

Industrial Capital Goods

Others

1.91

2.27

2.32

2.65

2.92

2.94

3.053.20

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Others include: Media & Entertainment (1.25%), Construction(0.96%), Transportation( 0.53%), Hardware(0.46%).


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Portfolio Composition(As at April 30, 2011)

% to Net Assets

Top 10 equity holdings 43.76

Total Equity & Equity Related Holdings 96.86

Cash margin 0.17

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Ot er Cas , Cas Equiva ents an Net Current Assets 2.97

Grand Total 100.00

Net Assets (` In crore) 10,529.02

No. of companies in the portfolio 67


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Product Features

Type of Scheme Open-ended Growth Scheme

Inception Date (Date of allotment) October 11, 1996

Investment Objective To generate long term capital appreciation from a portfolio of equity and equity-linked instrumentsprimarily drawn from the companies in the BSE 200 index

Fund Manager $ Prashant Jain (since June 19, 2003)*

Options Growth and Dividend The Dividend Option offers Dividend 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

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Load Structure Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the ARNHolder (AMFI registered Distributor) based on the investors assessment of various factors includingthe 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 of

allotment

Benchmark BSE 200

*Date of migration from Zurich India Mutual Fund.$ Dedicated Fund Manager for Overseas Investments: Miten Lathia


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Asset Allocation Pattern

Types of Instruments Normal Allocation

(% of Net Assets)

Risk Profile

Equity & Equity linked Upto 100% (including use of derivatives for hedging andother uses as permitted by prevailing SEBI Regulations)

Medium to High

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

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Debt and moneymarket instruments*

Balance in debt and money market instruments Low to medium

*Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the Scheme.The scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 40% of net

assets) subject to SEBI (Mutual Funds) Regulations, 1996. The scheme may use derivatives mainly for the purpose ofhedging and portfolio balancing (max 25% of net assets) based on the opportunities available subject to SEBI (MutualFunds) Regulations, 1996.


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Performance &

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(As on April 29, 2011)


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Relative PerformanceHDFC Top 200 Fund (Growth Option)

(As on April 29, 2011)

Period Returns (%) $$ BSE 200 Returns (%) #

Last 1 Year (365 Days) 15.52 6.62

Last 3 Years (1095 Days) 14.56 2.94

The fund has outperformed its benchmark in all of the following time periods^

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Last 5 Years (1827 Days) 16.89 9.89

Last 10 Years (3654 Days) 31.57 20.92

Since Inception (5313 Days) 25.17 14.89

^ Past performance may or may not be sustained in the futurePerformance of the Dividend Option for the investor would be net of Distribution Tax as applicable.

Above returns are compounded annualized (CAGR.)# Benchmark Index$$ All dividends declared prior to the splitting of the Scheme into Dividend & Growth Options are assumed to be reinvested in theunits of the Scheme at the then prevailing NAV (ex- dividend NAV).Inception Date October 11, 1996


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Systematic Investment Plan Returns(As on April 29, 2011)

SIP Investments

SinceInception $

SIP

10 Year

SIP

5 Year

SIP

3 Year

SIP

1 Year

SIP

Total AmountInvested (`)(`)(`)(`)

175,000 120,000 60,000 36,000 12,000

This is how your investments would have grown if you had invested say ```1,000 systematically on the firstbusiness day of every month over a period of time.

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, , , , , , ,

Returns (annualised)(%) *$$

27.04 31.15 19.91 27.41 7.24

Benchmark Returns(annualised) (%) # 17.09 20.43 11.77 18.85 1.36

Past Performance may or may not be sustained in the future.# BSE 200 $ Inception Date: October 11, 1996 *Load is not taken into consideration and the Returns are of Growth Option. Investors are advisedto refer to Relative Performance table on slide 15 for Non SIP Returns

$$ All dividends declared prior to the splitting of the Scheme into Dividend & Growth Options are assumed to be reinvested in the units of theScheme at the then prevailing NAV (ex- dividend NAV).Disclaimer: The above investment simulation is for illustration purpose only and should not be construed as a promise on Minimum returns andsafeguard of capital. HDFC Mutual Fund / HDFC Asset Management Company Ltd. is not guaranteeing Or promising or forecasting any returns.SIP does not assure a profit or guarantee protection against loss in a declining market. Entry / Exit Load is not taken into consideration in the aboveinvestment simulation. Please refer SIP enrolment form or contact nearest ISC for SIP load structure.


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Dividend History(Since 2000)

Record Date Cum Dividend NAV per Unit (`)(`)(`)(`) Dividend ^Per Unit (`)(`)(`)(`)

January 7, 2000 25.810 2.50

March 24, 2000 24.810 2.50

August 25, 2000 16.030 2.10

February 23, 2001 13.840 2.00

March 15, 2002 12.440 1.20

July 15, 2003 16.272 2.00

October 31, 2003 19.899 2.50

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arc , . .

December 15, 2004 24.066 3.00

February 17, 2006 36.409 4.50

February 7, 2007 42.968 5.00

February 7, 2008 48.129 5.00

March 5, 2009 23.364 3.00

March 11, 2010 46.578 4.00

March 10, 2011 48.000 4.00

^Past performance may or may not be sustained in the future.All dividends are on face value of`10 per unit. After payment of the dividend, the per Unit NAV falls to the extent of the

payout and Statutory levy (if applicable)


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Fund Rating

HDFC Top 200 Fund- Growth Option has been assigned Elite Qualitative

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Elite Rating: These funds represent Morningstar analysts highest conviction picks. Morningstar awards therating to funds that it believes are capable of outperforming their peers over the long term. To earn this rating, afund must be significantly better than its peers in most key respects.

#Past performance is no guarantee of future results.Please refer to the slides: 24 & 25 on Award /Ranking / Rating methodology.


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Fund Rating

HDFC Top 200 Fund Growth Option was assignedCRISIL Mutual Fund Rank 1 #in the Open End Large Cap Oriented Equity SchemesCategory (out of 34 schemes) forthe 2 year period ending March 31, 2011 by CRISIL.

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HDFC Top 200 Fund was assigned CRISIL Mutual Fund Rank 1 # in the Open EndConsistent EquityCategory (out of 40 schemes) for the 5 year period ending March 31,2011 by CRISIL.

CRISIL Mutual Fund Rank 1means that the composite performance of the Scheme isVery Good performanceand ranks within the Top 10 percentile in the category.

# Past performance is no guarantee of future results.Please refer to the slide: 26 on Award /Ranking / Rating methodology.


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Fund Rating

HDFC Top 200 Fund Growth and Dividend Option has been rated 5 - Star by Morningstarin the Morningstar India Open Ended Large Cap category from amongst (266 schemes) forthe overall 3 5 10 ear- as a licable eriod endin A ril 30 2011#

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Five Stars indicate that the fund is in the top 10 percent of its category in terms of historical risk adjusted returns

Value Research Rating - * * * * * (Five Stars) in Equity Large and Mid Cap Category(from amongst 61 schemes) for the 3 and 5 year periods ending April 30, 2011#

Five stars indicate that fund is in the top 10 per cent of its category in terms of historical risk adjusted returns

#Past performance is no guarantee of future results.Please refer to the slides: 26 on Award /Ranking / Rating methodology.


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Fund Suitability

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Why HDFC Top 200 Fund?

The fund is by design well diversified, hence is a lower risk product compared toless diversified funds

Well defined investment universe primarily comprising BSE 200 companies andTop 200 capitalised companies ONLY supports good quality of portfolio, whichalso reduces risk

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Well established track record of over 13 years*

*Past performance may or may not be sustained in the futurePlease refer relative performance table on slide 15.

HDFC T 200 F d i i bl f


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HDFC Top 200 Fund is suitable forinvestors:

Looking for a large cap oriented, well diversified core holding within their mutualfund portfolio

Preferring a active + passive investment management approach

Preferring a fund with a disciplined investment strategy by mandate

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Planning for long term financial goals such as retirement, childrens educationand marriage etc.


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MORNINGSTAR QUALITATIVE RATINGTM:

Morningstar analysts assign a Morningstar Qualitative Rating to funds using a five-point scale ranging from Elite to Impaired.

Elite Rating: These funds represent Morningstar analysts highest conviction picks. Morningstar awards the rating to fundsthat it believes are capable of outperforming their peers over the long term. To earn this rating, a fund must be significantlybetter than its peers in most key respects.

Award/Ranking/Rating Methodology

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.Morningstar Qualitative Rating is as of December 2, 2010. The Rating of the Fund is subject to change by Morningstar based on evaluation

of the five key pillars People, Parent, Process, Performance and Price. For the latest Rating of the Fund, refer to the websitewww.morningstar.co.in

DISCLAIMER:

The Morningstar Qualitative Rating represents Morningstar analysts opinion of a funds relative investment merit. It is a forward lookingmeasure and identifies analyst conviction in a funds long-term performance prospects relative to a relevant pan-European & Asian peer group,which is usually but not always the funds Morningstar category. The Morningstar Qualitative Rating scale is Elite, Superior, Standard,

Inferior, and Impaired.

For detailed information on the Rating Methodology, refer to www.morningstar.co.in


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RATING METHODOLOGY AND DISCLAIMER FOR THE MORNINGSTAR QUALITATIVERATINGTM.

RATING METHODOLOGY:

Morningstar qualitative research provides forward-looking insight and assumptions into how a fund might behave under different market conditions, helpinginvestors to maintain realistic performance expectations and manage their portfolios more wisely.

Morningstars principles of qualitative research are Independence, Investors First, Relevant Coverage, Comprehensive scale and Local & Global Expertise.

Morningstar evaluates funds based on five key pillars People, Parent, Process, Performance and Price.

PROCESS

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Morningstar uses a detailed process to evaluate each fund receiving a research report and rating, including:

Acquire basic information via a Fund Company Questionnaire sent to all potential funds to be included in the research and ratings Analyse holdings and returns using Morningstar tools

Assess the five pillars systematically, using all available sources

Interview the fund manager, usually conducted face to face and with multiple analysts present

Consult Morningstars team of global analysts

Ensure the consistent application of standards through a ratings committee meeting, in which a group of senior analysts from across Europe review

the analysis and collectively decide upon the Morningstar Qualitative Rating

Construct a report with robust analytical content, as well as regularly updated risk and returns statistics, Morningstar proprietary holdings based

graphics, and data points

Issue reports through regional and global distribution channels

Track ratings systematically and continually review for consistency and unwanted bias.

Contd.


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Thank You

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HDFC Top200 Fund April 302011

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