August 2012

Why Small and Midcap Companies

Superior Growth
Presence in generally new & faster growing segments Ability to gain share due to new technology, better products / services etc. Small base

Growth

MATURITY DECLINE GROWTH INCEPTION Time

Focus on Small and Mid Caps here

Small in size, big on stature!

Did you know Indias. Company Market Cap. (INR crore) 10,910 Category

Largest Batteries Company

Exide Industries Ltd.

Mid Cap

Largest AC and Commercial Refrigeration Company Market leader in specialty ceramics and refractory products Largest manufacture & exporter of Explosives in India One of Indias largest ceramics and abrasives manufacturers
Source: NSE ( www.nseindia.com)

Blue Star Ltd.

1,715

Mid Cap

Vesuvius India Ltd.

717

Mid Cap

Solar Industries India Ltd

1,615

Mid Cap

Carborundum Universal Ltd.

2,835

Mid Cap

Exide Industries Ltd: Largest power storage solutions company in India. Company website www.exideindustries.com Blue 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.com Solar Industries Limited. company website www.solarexplosives.com Carborundum Universal Ltd. company website www.cumi-murugappa.com Market capitalization as on July 31, 2012 (NSE India). Stocks referred above are purely illustrative and are not recommended by HDFC Mutual Fund/ HDFC Asset Management Company Ltd. The Fund may or may not have any present or future positions in these stocks.

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 for their inherently greater volatility relative to large-caps (represented by S&P CNX Nifty).

S&P CNX Nifty: 13.11% CAGR

CNX Midcap Return: 17.13 % CAGR

Source: National Stock Exchange All 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

Presenting HDFC Mid Cap Opportunities Fund

(An Open-Ended Equity Scheme)

Product Rationale
Provide investors with exposure to a portfolio constituted primarily of small and mid cap companies Such a portfolio offers a higher return potential than one comprising primarily large cap companies but also carries relatively higher risk, particularly over the short and medium term Small and mid cap companies offer the potential of higher returns due to the following 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

Market Capitalization Breakup

(As on July 31, 2012)
HDFC Mid Cap Opportunities Fund offers investors greater exposure to small and mid caps relative to broad based market indices.

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Large Cap
S & P CNX 500

88.5% 54.33% 49.56% 50.09%

45.67%

0.0%

0.35%

0.00%

5.5%

Mid Cap
BSE 200 Index

Small Cap
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 have market 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.

Industry Allocation - % of Net Assets

(As at July 31, 2012)
Banks Industrial Products Pharmaceuticals Consumer Non Durables Software Auto Ancillaries Chemicals Consumer Durables Construction Media & Entertainment Petroleum Products Industrial Capital Goods Others Oil Finance 2.22 1.83 1.16 1.15 3.14 2.94 4.61 4.56 3.99 8.38 7.51 7.14 15.42 14.97 14.96

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

Portfolio Composition
(As at July 31, 2012)
% to Net Assets Total Equity & Equity Related Holdings Cash, Cash Equivalents and net Current Assets Grand Total Average AUM for the quarter ended June 30, 2012 (` in Lakhs) Average Market Capitalization (INR Crore) Market Capitalization of Largest Company (INR Crore) Market Capitalization of Smallest Company (INR Crore) 93.98 6.02 100.00 2,021.09 6,714 43,226 105

Risk Management
Small and Mid Cap companies may carry higher risk than large cap companies, particularly over the short and medium term The Scheme endeavors to control risk by adopting the following investment strategy:
Aims to maintain a well diversified portfolio (70 stocks as on July 31, 2012) Scheme Top 5 Stocks Top 10 Stocks 16.25 28.21 CNX Midcap # S&P CNX Nifty ## 19.69 31.01 33.09 51.50

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 Debt and Money Market Instruments up to 25% of the net assets
Portfolio concentration (%) as on July 31, 2012. # Benchmark index ## Additional Benchmark index

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SCHEME PERFORMANCE SUMMARY

HDFC Mid-Cap Opportunities Fund- Growth Option NAV as at June 29, 2012 ` 16.104 A. Cumulative Performance Value of Investment of `10,000@ CNX S & P CNX NAV Scheme CNX S & P CNX Per Returns Midcap NIFTY (%) Scheme Midcap NIFTY (`) (%) # ## (`) # ## Unit (`) (%) ^ (`) 16.129 14.187 9.074 10.000 -0.16 6.53 21.05 9.96 -7.72 -4.70 9.67 4.74 -5.74 0.22 6.33 4.37 9,985 11,351 17,747 16,104 9,228 9,081 13,195 12,617 9,426 10,043 12,022 12,394

Date 29-Jun-11 29-Jun-10 29-Jun-09 25-Jun-07

Period Last 1 Year Last 2 Years Last 3 Years Since Inception

B. Discrete 12 Month Returns (%) Scheme CNX S & P CNX Period ^ Midcap # NIFTY ## Jun 29, 11 to Jun 29, 12 -0.16 -7.72 -5.74 Jun 29, 10 to Jun 29, 11 13.69 -1.60 6.55 Jun 29, 09 to Jun 29, 10 56.35 45.31 19.70

^ 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.

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SCHEME PERFORMANCE SUMMARY

Of other schemes managed by Chirag Setalvad
HDFC Balanced Fund- Gr owth Option NAV as at June 29, 2012 ` 58.211 A. Cumulative Performance Value of Investment of `10,000@ CRISIL CRISIL Scheme Balanced Balanced S & P CNX S & P CNX NAV Returns Fund Index NIFTY (%) Scheme Fund Index NIFTY (`) Per Date Period (%) # ## (`) # ## Unit (`) (%) ^ * (`) B. Discrete 12 Month Returns (% ) CRISIL Balanced Scheme Fund Index S & P CNX 29-Jun-11 Last 1 Year 57.405 1.40 -0.44 -5.74 10,140 9,956 9,426 Period ^* # NIFTY ## 29-Jun-10 Last 2 Years 50.541 7.31 2.82 0.22 11,518 10,574 10,043 Jun 29, 11 to Jun 29, 12 1.40 -0.44 -5.74 29-Jun-09 Last 3 Years 36.395 16.93 6.68 6.33 15,994 12,144 12,022 Jun 29, 10 to Jun 29, 11 13.58 6.21 6.55 11-Sep-00 Since Inception 10.000 16.09 N.A. 11.53 58,211 N.A. 36,247 Jun 29, 09 to Jun 29, 10 38.87 14.86 19.70

HDFC Capital Builder Fund- Growth Option A. Cumulative Performance

NAV as at June 29, 2012 Value of Investment of `10,000@

` 105.226

Date 29-Jun-11 29-Jun-10 29-Jun-09 01-Feb-94

Period Last 1 Year Last 2 Years Last 3 Years Since Inception

S & P CNX S & P CNX NAV Scheme Returns S & P CNX NIFTY (%) Scheme S & P CNX NIFTY (`) Per 500 (%) # ## 500 (`) # ## (`) Unit (`) (%) ^ 111.599 102.907 70.422 10.000 -5.71 1.12 14.31 13.63 -7.16 -2.46 5.46 7.70 -5.74 0.22 6.33 8.23 9,429 10,225 14,942 105,226 9,284 9,514 11,731 39,242 9,426 10,043 12,022 42,920

B. Discrete 12 Month Returns (% ) Scheme S & P CNX S & P CNX Period ^ 500 # NIFTY ## Jun 29, 11 to Jun 29, 12 -5.71 -7.16 -5.74 Jun 29, 10 to Jun 29, 11 8.45 2.48 6.55 Jun 29, 09 to Jun 29, 10 46.13 23.30 19.70

The scheme is co-managed by Chirag Setalvad and Miten Lathia @@ ^ 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. N.A : Not Availalble Performance of dividend option under the schemes for the investors would be net of distribution tax applicable. 12 @shows the current value of `10,000/- invested at the beginning of a given period. * 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 schemes investments are made in debt instruments.@@ Miten Lathia since May 10, 2012

SCHEME PERFORMANCE SUMMARY

Of other schemes managed by Chirag Setalvad
HDFC Long Term Advantage Fund- Growth Option @@ NAV as at June 29, 2012 A. Cumulative Performance Value of Investment of `10,000@ NAV Scheme Returns Per Unit (`) (%) ^ 138.862 125.950 91.729 10.000 -5.30 2.18 12.75 25.12 S & P CNX SENSEX NIFTY (%) Scheme (%) # ## (`) -6.76 -0.30 5.63 13.61 -5.74 0.22 6.33 13.18 9,470 10,441 14,337 131,509 S & P CNX SENSEX NIFTY(`) (`) # ## 9,324 9,941 11,788 43,370 9,426 10,043 12,022 41,507 ` 131.509

Date 29-Jun-11 29-Jun-10 29-Jun-09 02-Jan-01

Period Last 1 Year Last 2 Years Last 3 Years Since Inception

B. Discrete 12 Month Returns (%) Scheme S & P CNX Period ^ SENSEX # NIFTY ## Jun 29, 11 to Jun 29, 12 -5.30 -6.76 -5.74 Jun 29, 10 to Jun 29, 11 10.25 6.61 6.55 Jun 29, 09 to Jun 29, 10 37.31 18.59 19.70
` 45.228

HDFC CHILDREN'S GIFT FUND - INVESTMENT PLAN NAV as at June 29, 2012 A. Cumulative Performance Value of Investment of `10,000@ Crisil S& P CNX Crisil S& P CNX NAV Scheme Returns Balanced Nifty (%) Scheme Balanced Nifty (`) Per (%) ^ $ * Fund (%) # ## Fund (`) # ## Unit (`) (`)

Date

Period

29-Jun-11 29-Jun-10 29-Jun-09 02-Mar-01

Last 1 Year Last 2 Years Last 3 Years Since Inception

44.646 37.140 26.931 10.000

1.30 10.34 18.85 16.92

-0.44 2.82 6.68 N.A

-5.74 0.22 6.33 13.11

10,130 12,178 16,794 58,796

9,956 10,574 12,144 N.A.

9,426 10,043 12,022 40,410

B. Discrete 12 Month Returns (% ) Crisil Scheme Balanced S& P CNX ^$* Fund # Nifty ## Period Jun 29, 11 to Jun 29, 12 1.30 -0.44 -5.74 Jun 29, 10 to Jun 29, 11 20.21 6.21 6.55 Jun 29, 09 to Jun 29, 10 37.91 14.86 19.70

^ 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. $ Adjusted for bonus units declared under 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. 13 *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 schemes investments are made in debt instruments @@ Open Ended Equity Linked Savings Scheme with a lock-in period of 3 years

SCHEME PERFORMANCE SUMMARY

Of other schemes managed by Chirag Setalvad
HDFC CHILDREN'S GIFT FUND- SAVINGS PLAN A. Cumulative Performance Value of Investment of Crisl 10 Scheme CRISL MIP Year Gilt CRISL MIP NAV Returns Blended Index (%) Scheme Blended Per Date Period (%) ^ $ ** Index (%) # ## Index (`) # Unit (`) (`) NAV as at June 29, 2012 ` 25.100 `10,000@ Crisl 10 Year Gilt Index (`) ## B. Discrete 12 Month Returns (% ) CRISL MIP Crisil 10 year Gilt Scheme Blended Index ## ^ $ ** Index # 10,683 Period 10,919 Jun 29, 11 to Jun 29, 12 7.63 6.69 6.83 11,266 Jun 29, 10 to Jun 29, 11 9.66 5.08 2.20 N.A Jun 29, 09 to Jun 29, 10 18.26 7.24 3.18

29-Jun-11 29-Jun-10 29-Jun-09 02-Mar-01

Last 1 Year Last 2 Years Last 3 Years Since Inception

23.321 21.267 17.984 10.000

7.63 8.63 11.74 11.00

6.69 5.87 6.33 N.A

6.83 4.49 4.05 N.A

10,763 11,802 13,957 32,630

10,669 11,211 12,023 N.A.

HDFC MULTIPLE YIELD FUND- PLAN 2005 - Growth Option NAV as at June 29, 2012 ` 18.0659 A. Cumulative Performance Value of Investment of `10,000@ Crisil 1 Crisil 1 Scheme CRISL MIP Year T-bill CRISIL MIP Year T-bill NAV Returns Blended Index (%) Scheme Blended Index (`) Per Index (`) # ## Date Period ## Unit (`) (%) ^ ** Index (%) # (`) B. Discrete 12 Month Returns (% )
CRISIL MIP Crisil 1 Scheme Blended Year T-bill Index ## ^** Index #

29-Jun-11 29-Jun-10 29-Jun-09 17-Aug-05

Last 1 Year Last 2 Years Last 3 Years Since Inception

16.7409 15.6065 13.2446 10.0000

7.91 7.58 10.89 8.99

6.69 5.87 6.33 7.40

7.75 5.96 4.68 5.36

10,791 11,576 13,640 18,066

10,669 11,211 12,023 16,327

10,775 11,230 11,472 14,313

Period Jun 29, 11 to Jun 29, 12 Jun 29, 10 to Jun 29, 11 Jun 29, 09 to Jun 29, 10

7.91 7.27 17.83

6.69 5.08 7.24

7.75 4.22 2.16

The Scheme is co-managed by Chirag Setalvad (Equities) and Anil Bamboli (Debt).
^ Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualised (CAGR). N.A: Not Available # Benchmark of the Scheme. ## Additional Benchmark of the Scheme. $ Adjusted for bonus units declared under the scheme. @shows the current value of ` 10,000/- invested at the beginning of a given period. 14 Performance of dividend option under the schemes for the investors would be net of distribution tax applicable. ** Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of hybrid nature of the scheme where a portion of schemes investments are made in equity instruments..

Why HDFC Mid Cap Opportunities Fund?

Opportunity to invest in a diversified portfolio of small and mid sized companies with faster growth potential Provides diversification to an investors overall equity mutual fund portfolio Attractive valuations of small and mid cap companies One of the most experienced fund management and research teams in the country with a track record of managing equity assets across market cycles Strong emphasis on risk management to mitigate the inherently greater volatility of a portfolio dominated by small and mid cap companies

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Product Features
Type of Scheme Inception Date (Date of allotment) Investment Objective Fund Manager $ Options Minimum Application Amount (Under Each Option) Load Structure Open-ended Equity Scheme June 25, 2007 To generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small and mid cap companies Mr. Chirag Setalvad (since June 25, 2007) Growth and Dividend. Dividend option offers payout and reinvestment facility. Purchase: ` 5,000 and any amount thereafter Additional Purchase: ` 1,000 and any amount thereafter 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 No Entry/ Exit Load shall be levied on bonus units and units allotted on dividend reinvestment CNX Midcap Index S&P CNX Nifty

Benchmark Additional Benchmark

$ 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) Maximum Allocation (% of Net Assets) Risk Profile of the Instrument

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

75 0 75

100 15 100

High

Equity and equity related securities other than above

25

High

Debt and Money Market Securities

25

Low to Medium

The investment in Securitised Debt will not normally exceed 25% of the net assets of the Scheme The 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 of hedging and portfolio balancing (max. 20% of net assets) based on the opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.

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Disclaimer & Risk Factors

DISCLAIMER: This presentation has been prepared by HDFC Asset Management Company Limited (HDFC AMC) on the basis of internal data, publicly available information and other sources believed to be reliable. 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 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 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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