Best positioned for Economic Recovery & Make in India initiative

This product is suitable for investors who are seeking*:

Capital appreciation over long term
Investment predominantly in equity and equity related
securities of companies engaged in or expected to
benefit from growth and development of
infrastructure.
* Investors should consult their financial advisers if in
doubt about whether the product is suitable for them.

Riskometer

Ideally suited for SIP

Refer slide no 13

August 2015

HDFC Infrastructure Fund One Fund, Two themes

HDCF Infrastructure Fund is ideally positioned to benefit from :

Infrastructure thrust in India

Power
Road
Railways

Make in India initiative

Clear government focus

Land & Mining laws tweaked, Labour laws changes likely
Localisation of Defence procurement
Softening of interest rates to benefit manufacturing & capex sectors

Infrastructure Several positive developments in Power, Roads & Railways

Power Target 24x7 Power for all by 2019
Coal mining through auctions. Target to double coal production by 2019
Power generation output to double by 2019 by addressing fuel and transmission network
constraints
Approved Rs 720 bn spending over next five years on T&D
Roads Target 30 km per day
4000 km EPC projects to be awarded in FY15
Premium restructuring approved for stalled BOT projects
Started rebidding of surrendered BOT projects
Railways
Increased passenger fares by 14% after 16 years
100% FDI in certain areas
Focus on modernization & upgradation of Railways
$19 bn worth Metro projects to be awarded during FY15-17
Rs 1 lakh-crore orders soon for power, mining equipment Power Minister
Source: Publicly available information, *Economic Times Article dated 10th January, 2015

Infrastructure sector Improving policy framework

Effective leadership in Power, Transport, Railways and Defence ministries

Coal mines auction process commenced; Telecom spectrum auction announced

Cabinet hikes FDI limit from 26% to 49% in insurance and defence

Cabinet clears Digital India programme

Mining issues resolved through MMDR Amendment Ordinance 2015

Easing norms and online approvals for Environment & Forest clearances

Projects below Rs 10 bn do not require CCEA approval now

MOU between Road and Railway minister for faster clearances

Funding: Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries

RBI permits use of 5-25 rule for loan restructuring of existing projects as well

Source: Publicly available information.

Make in India Initiative

The features :

Clear government focus

Land & Mining laws tweaked, Labour law changes likely, Mining laws amended

Focus on localization of Defence procurement

Simplification of rules Goal to be among top 50 countries in Ease of Doing Business ranking

GST should lead to tax simplification, unifying market

The India Advantage :

The country is expected to rank amongst the worlds top three growth economies and amongst
the top three manufacturing destinations by 2020

Favorable demographic dividends for the next 2-3 decades. Sustained availability of quality
workforce

The cost of manpower is relatively low as compared to other countries

Strong technical and engineering capabilities backed by top-notch scientific and technical
institutes

Source: Publicly available information.

Infrastructure & Manufacturing Closely linked to each other

Improving Infrastructure supports manufacturing and vice versa
Financiers
Banks
NBFC`s
Infra Financiers
etc.
Asset Owners
Airports, Ports, Road
Oil & Gas
Telecom
Utilities
Minerals etc.

Asset Creators
Construction
Engineering
Project Mgmt.
Etc.
Manufacturing
Auto
Auto Ancillaries
Chemicals
Cement
Defence Etc.

HDFC Infrastructure Fund invests in the entire ecosystem

6

The Defence opportunity

Large opportunity available for domestic players
DPP 2013 emphasizes local sourcing
FDI increased to 49% and de-licensing of manufacturing

DPP 2013: Priority Of Sourcing Arrangement

Buy (Indian)
Buy & Make (Indian)
Make
Buy & Make with ToT

India is likely to award projects worth USD 50bn over

Buy Global

next five years.

USD 19bn worth projects cleared in last 6 months

6 submarines likely to be made in India
Purchase of Artillery Guns cleared after 15 years
Transport aircraft (Avro) replacement program
Source: BAML and Edelweiss

Increasing competitiveness of India vs China

China is 9.5% & India is 1.6% of global exports

INR has depreciated by ~43% in last 5 years

Wage inflation in China is higher than in India

185% increase in productivity adjusted labour costs
(China Productivity adjusted manufacturing wages (US$)
14

12.5

12
10

185%

8
6
4

4.4

2
0

CY 2004

CY 2014

Increasing wage inflation in China, is beneficial for India

Source: Bloomberg, Kotak

India Probably the best placed economy in the world

Best demographics

Demographic - 2014

US

Europe

Japan

China

India

Brazil

40.1

37.3

31.8

42.8

51.5

49.6

US

Europe

Japan

China

India

Brazil

87.4

86.2

90.6

49.3

18

57.6

2013

US

Europe

Japan

China

India

Brazil

Oil Imports (% of GDP)

1.5

2.2

3.2

2.4

0.7

July 2015

US

Europe

Japan*

China

India

Brazil

CPI

0.2

0.2

0.4

1.6

3.8

9.6

Current (July 2015)

US

Europe

Japan

China

India

Brazil

0.25

0.05

0.0

4.6

7.25

14.2

% Population (Age 10-40)

Very low market penetration

(Internet)

Major beneficiary of oil fall

Deflation not a concern

One of the few with peak rates

2014
Internet Penetration (%)

Bank Rates

Source: Kotak, Bloomberg, JP Morgan, UN Comtrade, World Economic Outlook, PPAC.

* CPI As on June 2015. All figures are calendar year end figures unless specified.

Equity Markets A Positive Outlook

Reasonable Price to Earnings (P/Es) despite
markets run up
45

Roll PE (LHS)

40

35,000

Average (LHS)

30,000

BSE (RHS)

35

EBITDA margins at cyclical lows

25,000

30
25

20,000

20

15,000

15

10,000

10

5,000

5
0

Source : CLSA

Aug 15

Aug 13

Aug 11

Aug 09

Aug 07

Aug 05

Aug 03

Aug 01

Aug 99

Aug 97

Aug 95

Aug 93

Aug 91

FY
Source : BAML
EBIDTA Earnings before interest taxes depreciation and amortization

Reasonable P/Es at cyclically low margins leads to positive outlook for equities

Reference made to S&P BSE SENSEX in this presentation is only for easy understanding of market movement and must not be construed as
future performance of S&P BSE SENSEX. The Benchmark for this FUND is CNX 500.

10

Rapidly falling inflation & Positive Real rates indicate lower interest rates

Real Rates +Ve Supportive Of Lower Yields*

Inflation drivers are moderating

3
2

INR depreciation

Stable INR

Strong Consumer
demand

Slowdown in Consumer
demand

-1

High wage inflation

Moderation in wage growth

-2

High increase in MSP's

Low growth in MSP's

Sharply rising Diesel

prices

Stable prices

1.4

-3
-4

-1.8
-3.0

Jul-15

Apr-15

Jan-15

Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

0
Apr-13

Lower/Stable commodity
prices

4.0

3.7

Jan-13

High commodity prices

Oct-12

Future

Jul-12

Past

-2.4

Companies engaged in manufacturing & capex likely to benefit from lower rates
Source: Bloomberg, BAML
*HDFC Mutual Fund/AMC is not guaranteeing/offering/communicating any indicative yields or guaranteed returns on investments made in this scheme.

11

HDFC Infrastructure Fund A play on infrastructure & manufacturing

Manufacturing
Sectors

% of Net Assets

Financiers

Asset Creators

Asset Owners

Others

Auto, Auto
Airports, Ports,
Construction,
Ancillaires,
Banks, NBFC`s,
Roads,Oil & Gas,
Engineering,
Chemicals,
Infra Financiers
Telecom, utilities,
Project
Cement, Defence
etc.
Management etc. minerals etc
etc.
16%

24%

44%

11%

5%

95% of assets of HDFC Infrastructure Fund are in Infra, manufacturing and related sectors

Positioned for revival in Infrastructure & manufacturing sectors

*Based on internal computation and classification. For detailed monthly portfolio as on July 31, 2015 please visit our website www.hdfcfund.com

12

12

SIP in HDFC Infrastructure Fund Key advantages

An open ended Fund with a 6 year track record & well defined portfolio strategy

This Fund has higher volatility (Beta of 1.69*) due to higher exposure to related sectors

While the Fund offers a good risk reward proposition in the medium to long term, short
term volatility is high

Investing through SIP reduces short term volatility

SIP is thus an ideal way to invest in HDFC Infrastructure Fund

* Beta as on 31st July 2015. 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.

13

HDFC Infrastructure Fund Favorable Risk Reward Proposition

Risk

Portfolio is concentrated in a few sectors, hence carries higher risk

In view of the higher risk, exposure to this Fund should be controlled*

Not suitable for Risk averse investors

Risk reward proposition

With attractive valuations and prospects of economic recovery, we feel risk reward is
favorable for the scheme*

* In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision
to invest. ,

14

14

Product Features
Type of Scheme

An Open Ended Equity Scheme

Investment Objective

To seek long term capital appreciation by investing predominantly in equity and equity related
securities of companies engaged in or expected to benefit from the growth and development of
infrastructure

Plans/Options

The plans viz. HDFC Infrastructure Fund and HDFC Infrastructure Fund Direct Plan offers investors
following options:

Growth Option

Dividend Option with payout and re-investment facility

Application Amount
(Under Each Plan/Option)

Minimum Rs. 5,000/- and any amount thereafter.

Additional Purchase : Rs 1,000/- and any amount thereafter

Entry / Exit Load*

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

CNX 500

Additional Benchmark Index

CNX NIFTY

*For further details, refer SID and KIM available on www.hdfcfund.com and at ISCs of HDFC Mutual Fund
15

Asset Allocation Pattern

Under normal circumstances, the asset allocation of the schemes portfolio will be as follows:
Minimum Allocation
(% of Net Assets)

Maximum Allocation
(% of Net Assets)

Risk Profile of the

Instrument

Equity
and
Equity
Related
Instruments of infrastructure /
infrastructure related companies

65

100

Medium to High

Equity
and
Equity
Related
Instruments of companies other than
mentioned above

35

Medium to High

Debt Securities and Money Market

Instruments* and Fixed Income
Derivatives

35

Low to Medium

Type of Instruments

*Investment in securitized debt shall not normally exceed 30% of the net assets of the scheme. Exposure to derivatives will not exceed
20% of net assets. Exposure to foreign securities will not exceed 35% of net assets.

*For further details, refer SID and KIM available on www.hdfcfund.com or at ISCs of HDFC Mutual Fund
16

Scheme Performance Summary

NAV as on 30
Jun 2015
15.857

Scheme
HDFC Infrastructure Fund #
CNX 500 Index 1

Discrete Returns in %
Value of investment of
30 Jun 2014 to 30 28 Jun 2013 to 30 29 Jun 2012 to 28 Since Inception
Rs. 10,000 Since
Jun 2015
Jun 2014
Jun 2013
CAGR (in %)
Inception (Rs.)
6.50
71.19
-12.09
6.51
15,857
11.71

36.64

8.16

CNX Nifty Index 2

30.09
10.67
9.95
Other funds managed by Srinivas Rao Ravuri Co-Fund Manager of HDFC Infrastructure Fund
HDFC Growth Fund
132.127
9.04
41.22
1.95
S&P BSE SENSEX

CNX Nifty Index 2

HDFC Rajiv Gandhi Equity Savings Scheme - Series I

15.440

S&P BSE 100 1

2

S&P BSE SENSEX

HDFC Rajiv Gandhi Equity Savings Scheme - Series II

13.814

S&P BSE 100 1

S&P BSE SENSEX 2
HDFC Equity Fund $
CNX 500 Index
CNX Nifty Index
HDFC Top 200 Fund $

8.01

17,560

7.90

17,433

19.04

1,32,127

9.31

30.83

11.28

12.75

59,151

9.95
7.72

30.09
41.50

10.67
NA

12.53
21.19

57,462
15,482

9.32

33.23

NA

19.53

15,003

9.31
8.33

30.83
NA

NA
NA

18.91
28.32

14,828
13,814

9.32

NA

NA

23.08

13,087

20.53

12,738

20.58
10.02
N.A.
21.94

464316
70820
N.A.
4,10,877

9.31
NA
NA
Other funds managed by Prashant Jain Co-Fund Manager of HDFC Infrastructure Fund
464.316
9.60
57.45
4.13
11.71
36.64
8.16
9.95
30.09
10.67
336.976
7.35
48.63
5.60

S&P BSE 2001

12.01

34.23

8.69

13.75

1,11,609

S&P BSE SENSEX2

HDFC Prudence Fund$@

9.31
8.94

30.83
51.39

11.28
4.22

12.31
19.76

87,900
4,76,051

CRISIL Balanced Fund Index 1

8.78

20.88

10.90

N.A.

N.A.

CNX Nifty Index 2

HDFC MIP Long Term Plan +^

9.95
9.36

30.09
18.15

10.67
8.75

9.36
11.36

68,040
34,535

368.326

34.535

CRISIL MIP Blended Fund Index 1

11.05

8.24

10.83

7.70

23,501

CNX Nifty Index 2

11.76

-2.46

12.10

4.92

17,386

Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized (CAGR). The above returns are of
growth option. $All dividends declared prior to the splitting of the Scheme into Dividend & Growth Options are assumed to be reinvested in the units of the Scheme
at the then prevailing NAV (ex-dividend NAV). #The Scheme is co-managed by Prashant Jain and Srinivas Rao Ravuri. +The Scheme is co-managed by Prashant Jain
(Equities) and Shobhit Mehrotra (Debt). @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 scheme's investments are made in debt instruments. ^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 scheme's investments are made in equity instruments. 1. Benchmark 2. Additional
17
Benchmark

DISCLAIMER / RISK FACTORS

This presentation is dated 29th August 2015. The views expressed herein are based on the basis of 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.

18

18

Glossary
SID

Scheme Information Document

KIM

Key Information Memorandum

ISCs

Investor Service Centres

T&D

Transmission and Distribution

BoT

Build Operate Transfer

MMDR

Mining and Minerals Development & Regulation

CCEA

Cabinet Committee on Economic Affairs

19

19

Thank You

20