Professional Documents
Culture Documents
Riskometer
December 2015
Small & Midcap stocks are often under-owned, under-researched and misunderstood.
Stock picking with a long term fundamental view is a tough skill to master especially in
the midcap and small-cap space.
Volatility in the short term can be high but a long term perspective helps to buy on
dips.
Increased familiarity, larger size, changing fundamentals and better disclosures can
result in a re-rating of the business.
Several examples in the past give us confidence that these secrets can be found Again.
A Stable Agri-chemicals
Provider
Attractively valued
Niche Players.
Common Characteristics
of good Small cap stocks.
Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions
in these stocks.
3
High quality.
Market Leaders.
Significant
improvements
in
operations management through
effective technology usage.
Expected
to
grow
while
maintaining good profitability.
Common Characteristics
of good midcap stocks.
Good Growth
Prospects.
High Return ratios.
Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have
any present or future positions in these stocks.
4
FY 13
FY 14
FY 15
FY 16E
FY 17E
CPI (Avg %)
10.2
9.5
5.9
5.0
4.8
WPI (Avg %)
7.5
5.9
2.1
-0.5
2.0
GDP Growth
(%)
5.1
6.9
7.3
7.5
7.8
Fiscal Deficit (%
GDP)
4.8
4.6
4.1
3.9
3.6
CAD (% GDP)
-4.8
-1.7
-1.4
-1.0
-1.3
Roll PE (LHS)
40
35,000
average (LHS)
30,000
BSE (RHS)
35
25,000
30
25
20,000
20
15,000
15
10,000
10
5,000
Oct 15
Oct 13
Oct 11
Oct 09
Oct 07
Oct 05
Oct 03
Oct 01
Oct 99
Oct 97
Oct 95
Oct 93
Oct 91
Source: CLSA
Presenting
Investment Philosophy
Growth Investing Growth at a reasonable price
Focus on well managed small & midcap companies operating in a niche environment
and those that are relatively at an early stage in their life-cycle.
Investments are made in companies valued lower than their intrinsic worth with the
hope of growth in intrinsic value and a narrowing of the gap to intrinsic value.
Investments are typically made in growth companies with expanding businesses and
profitability.
Limited
Selective
Good
Institutional
Ownership
Low
Selective
High
For further details on investment strategy refer Scheme Information Document/Key Information Memorandum
Risk
Mitigants
Business quality
Suitable for specific market phases
The current investment strategy is subject to change depending on the market conditions
10
Disclaimer: SIP does not assure a profit or guarantee protection against a loss in a declining market. HDFC Asset Management Company Limited/ HDFC Mutual
Fund/ are not liable for any financial decisions arising out of the use of this calculator and also they do not take the responsibility, liability, for any error or
omission or inaccuracy or for any losses suffered nor undertake the authenticity of the figures calculated on the basis of calculator. The user before acting on
any information herein should make his/her/their own investigation and seek appropriate professional advice and shall along liable for any decision taken on
the basis of information contained herein. In view of individual nature of tax consequences each investor is advised to consult his/her own professional tax
advisor.
11
Fund Facts
Type of Scheme
Inception Date
(Date of allotment)
April 3, 2008
Investment Objective
To provide long-term capital appreciation by investing predominantly in Small-Cap and Mid-Cap companies
Fund Manager $
Plans
HDFC Small and Mid Cap Fund Direct Plan, HDFC Small and Mid Cap Fund Regular Plan
Options
Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.
Load Structure
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.
Benchmark Index
12
12
Minimum Allocation
(% of Net Assets)
Maximum Allocation
(% of Net Assets)
75
100
High
Small-Cap companies
Mid-Cap companies
50
25
75
50
25
Medium to High
25
Low to Medium
Securities
*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 Securities (max. 30% of net assets) &
Foreign Securities (max 20% of net assets) subject to SEBI (Mutual Funds) Regulations, 1996. The scheme may use
derivatives (max 50% of net assets). Refer Disclaimer on Slide 18.
13
Performance
Scheme
HDFC Small and Mid Cap Fund# *
NAV as
30 Sep 2014 to
on 30
30 Sep 2015
Sept 2015
25.785
11.06
5.87
Value of investment of
Discrete Returns in %
30 Sep 2013 to 30 28 Sep 2012 to 30 Since Inception
Rs. 10,000 Since
Sep 2014
Sep 2013
CAGR (in %)
Inception (Rs.)
55.38
0.87
13.47
25,785
80.47
-20.54
4.77
14,180
Nifty 50 Index
-0.20
38.87
Other Funds Managed by Chirag Setalvad, Fund Manager of HDFC Small & Midcap Fund
HDFC Balanced Fund @
107.414
11.65
60.86
0.56
7.05
16,659
-3.66
17.07
1,07,414
4.38
28.89
1.86
NA
NA
Nifty 50 Index 2
HDFC Mid- Cap Opportunities Fund
-0.20
17.32
38.87
91.44
0.56
-6.26
11.93
17.29
54,581
37,403
13.72
63.17
-10.69
10.17
22,283
193.804
-0.20
7.59
38.87
61.63
0.56
-2.21
7.83
14.66
18,662
1,93,804
3.59
46.08
-2.48
8.83
62,533
Nifty 50 Index 2
HDFC Long Term Advantage Fund @@
225.068
-0.20
-0.93
38.87
61.80
0.56
-0.73
8.99
23.50
64,629
2,25,068
-1.79
37.41
3.27
13.54
65,080
Nifty 50 Index 2
HDFC Children's Gift Fund - Investment Plan $ @
82.166
-0.20
7.71
38.87
51.81
0.56
3.45
13.23
17.63
62,501
1,06,816
4.38
28.89
1.86
NA
NA
Nifty 50 Index 2
HDFC Children's Gift Fund - Savings Plan $ ^
36.275
-0.20
10.59
38.87
24.74
0.56
1.23
13.18
11.22
60,848
47,157
10.72
15.45
3.20
NA
NA
13.76
6.31
6.85
22.93
2.43
3.33
NA
9.54
NA
25,168
37.403
Nifty 50 Index
HDFC Capital Builder Fund#
25.168
Glossary
ROCE
OEM
R&D
PPAC
G Sec
Government Securities
Smallcap
Companies whose market cap is equal to or lower than that of the stock with the
largest market cap in the Nifty Smallcap 100.
Midcap
Companies having a market capitalization equal to or lower than that of the stock
with the largest market cap in the Nifty Midcap 100.
P/E
Price to Earnings
EBIDTA
CPI
Disclaimer
The presentation is dated 10th December 2015 and 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 and is not an offer to sell or a solicitation to buy/sell any mutual fund units/securities. 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. 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. Neither
HDFC Asset Management Company (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.
16 16
Thank You