HDFC Growth Fund

(An Open Ended Growth Scheme)

Growing With Confidence#

Riskometer
This product is suitable for investors who are seeking*:
Capital appreciation over long term
Investment predominantly in equity and equity related instruments

*Investors should consult their financial advisers if in doubt about whether

the product is suitable for them.
#

The fund has given a CAGR return of 19.04% since inception. For complete details refer slide 13

September 2015

Table of Contents

Growing Staying Patient Is the Key

Investment Philosophy

Current Investment Strategy

Equity Portfolio Composition

Portfolio Facts

Equity Market Outlook

Dividend History

Why HDFC Growth Fund

Asset Allocation Pattern

Product Features & Scheme Performance

Disclaimer
2

Growing Staying Patient Is the Key

140

125.22

120

Staying invested & patient is key to long

term wealth creation

100

80

60
60.30
40

Inception
Sept 11th
2000

20

0
Sep-00

Sep-01

Sep-02

Sep-03

Sep-04

Sep-05

Sep-06

Sep-07

HDFC Growth Fund

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

Sep-14

Aug-15

S&P BSE SENSEX

Source: BSE
Internal data computation
Values are of August 31, 2015.
Past Performance may or may not be sustained in the future. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme.
Fund Inception date September 11 , 2000. BSE SENSEX values indexed to Rs 10 from scheme inception date. NAV on inception date was Rs 10. For
3
further details on performance refer slide 13.

Investment Philosophy

Focus On
the Long
Term

The scheme intends invest in sectors/companies that would

benefit from a growing Indian economy.
Growth in the Indian economy is driven by :
Growing investments to build infrastructure and
manufacturing capacities
Growing knowledge intensive industries like IT and
Pharma
Increasing consumption levels

Approach

The scheme would endeavor to purchase stocks that

represent a discount to its value, in an effort to preserve
capital and generate superior growth.

The investment portfolio would be regularly monitored

to understand the impact of changes in business and
economic trend as well as investor sentiment.

The decision to sell a holding would be based on the

fund managers perception of the market with an aim to
generate superior returns.

Maintain A
margin of
safety

Investments
Confer
proportionate
ownership

Maintain A
balanced
outlook on
the Market

Disciplined
Approach
to Selling

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change
depending on the market conditions

Current Investment Strategy

Capitalize on growing Indian Economy by investing in companies that offer superior risk adjusted
returns across sectors with a large cap bias.

Among three themes (Investment, consumption and knowledge intensive), the scheme would
generally invest between 70-90% in large-caps comprises (companies drawn from the S&P BSE SENSEX
or companies with a market cap larger than the smallest company in the S&P BSE SENSEX) and the
remaining corpus in mid and small-caps.

Strategy is to have about 70-90% exposure to Large cap companies:

Available at relatively attractive valuations.
High quality companies with strong earnings growth
Sustainable business models

Invest remaining in mid and small caps offering:

Deep value
Strong earnings visibility
Value unlocking potential
Long term bets

Currently over weight on Energy and Industrials. Under weight on FMCG, Auto, IT and Pharma Neutral
on Financials

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change
depending on the market conditions. Stocks/sectors referred above are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have 5
any present or future positions in these sectors.

Equity Portfolio Composition

25.2

11.3

Banks

Software

Petroleum Products

Auto

Pharmaceuticals

Construction

Capital Goods

Power

Finance

Chemicals

Others (13 Sectors)

19.2

10.3
6.7

5.9
4.6

4.1

3.8

3.1

2.9

Portfolio as on 31st August 2015. For complete portfolio details visit www.hdfcfund.com
6

Portfolio Facts

Total Equity & Equity Related Holdings

97%

Cash, Cash Equivalents and net Current Assets

3%

Average AUM** (Rs. in crores)

1,187.23

Total Number of stocks in the Portfolio

44

Top 10 Holdings
(As a % Of Total Holdings)

50.9

Top 15 Holdings
(As a % Of Total Holdings)

64.0

Portfolio Turnover Ratio (%)

25.6

Portfolio as on 31st August 2015. For complete portfolio details visit www.hdfcfund.com. ** Average AUM for the quarter ended June 30th , 2015
7

Equity Market Outlook

India is one of the biggest beneficiaries of
lower commodity prices especially crude oil.

In our opinion therefore, there is merit in

increasing allocation to equities (for those
with a medium to long term view) in a phased
manner and to stay invested.

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

Aug 15

Aug 13

Aug 11

Aug 09

Aug 07

Aug 05

Aug 03

Aug 01

Aug 99

Aug 97

Aug 95

Improving margin outlook of corporates,

likely lower interest rates, softening
commodity prices and reasonable valuations
lead to a positive outlook for equity markets
over the medium to long term.

Roll PE (LHS)

Aug 93

Further, low inflation, improving CAD and

fiscal outlook and rising order backlogs in
some key infrastructure related industries
point to a steadily improving growth
prospects of the economy, especially of the
capex cycle.

45

Aug 91

India has saved around USD 55bn in crude imports

alone in the 12 months ended July 2015.

Markets continue to remain reasonably valued and

make for a compelling investment opportunity for
long term investors

Source: CSO, CLSA

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme.

Dividend History
The scheme has a consistent dividend track record for the last 12 years
Record Date

NAV per Unit (Rs.)

Cum Dividend

Dividend
Per Unit (Rs.) ^

Dividend Yield

Sep 01, 2003

13.071

1.50

11.5%

Feb 27, 2004

16.122

2.00

12.4%

2004-05

Dec 15, 2004

17.711

2.00

11.3%

2005-06

Dec 30, 2005

23.123

2.50

10.8%

2006-07

Dec 28, 2006

29.681

3.50

11.8%

2007-08

Dec 27, 2007

42.928

4.00

9.3%

2008-09

Feb 26, 2009

17.949

2.25

12.5%

2009-10

Feb 25, 2010

30.043

2.75

9.2%

2010-11

Feb 24, 2011

31.392

3.00

9.6%

2011-12

Feb 23, 2012

30.629

3.00

9.8%

2012-13

Feb 21, 2013

29.331

3.00

10.2%

2013-14

Feb 13, 2014

25.019

3.00

12.0%

2014-15

Feb 12, 2015

33.959

3.50

10.3%

Financial Year
2003-04

^Past performance may or may not be sustained in the future. All dividends are on face value of Rs. 10 per unit. After payment of the dividend,
the per Unit NAV falls to the extent of the payout and statutory levy (if applicable.). There is no assurance or guarantee to unit holders as to the
rate/quantum of dividend distribution nor that the dividends will be paid regularly.
9

Why HDFC Growth Fund?

A well diversified portfolio
Capitalize on India Growth story by investing in companies that offer superior risk-reward
proposition
Bottom up approach with focus on undervalued companies, and companies with sustainable
earnings power

Large cap bias offering stability and liquidity. Controlled exposure to mid caps
Avoids growth at any cost thereby mitigating portfolio risk; strong emphasis on price of purchase
Ideal for investors looking to build long term wealth

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending
on the market conditions
10

Asset Allocation Pattern

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

Types of Instruments

Normal Allocation
(% of Net Assets)

Risk Profile

Equity & Equity related instruments

80 100

Medium to High

Debt Securities, Money Market instruments &

Cash (including CBLO/ Reverse Repo)

0 - 20

Low to medium

The scheme may seek investment opportunity in the Foreign Securities (max. 20% 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 including cash) based on the opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.
The scheme will not invest in Foreign Securitized Debt.

11

Product Features
Type of Scheme

Open-ended Growth Scheme

Inception Date (Date of allotment)

September 11, 2000

Investment Objective

To generate long term capital appreciation from a portfolio that is invested predominantly in equity
and equity related investments

Fund Manager $

Mr. Srinivas Rao Ravuri

Plans

HDFC Growth Fund, HDFC Growth Fund- Direct Plan

Options

Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment
facility.

Minimum Application Amount

(Under Each Option)

Purchase: Rs. 5,000 and any amount thereafter

Additional Purchase: Rs. 1,000 and any amount thereafter

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

S&P BSE SENSEX

$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas

For further details please refer to the Scheme Information Document / Key Information Memorandum of the Scheme available at ISC`s and at
www.hdfcfund.com
12

Scheme Performance Summary

Scheme
HDFC Growth Fund

Discrete Returns in %
Value of investment of
Rs. 10,000 Since
NAV as on 30 30 Jun 2014 to 30 28 Jun 2013 to 30 29 Jun 2012 to 28 Since Inception
Jun
2015
Jun
2014
Jun
2013
CAGR
(in
%)
Inception (Rs.)
Jun 2015
132.127
9.04
41.22
1.95
19.04
1,32,127

S&P BSE SENSEX 1

CNX Nifty Index

9.31

30.83

11.28

9.95
30.09
10.67
Other funds managed by Srinivas Rao Ravuri Fund Manager of HDFC Growth Fund
HDFC Infrastructure Fund #
15.857
6.50
71.19
-12.09
CNX 500 Index

1
2

CNX Nifty Index

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
S&P BSE 100 1
S&P BSE SENSEX

13.814

12.75

59,151

12.53

57,462

6.51

15,857

11.71

36.64

8.16

8.01

17,560

9.95
7.72

30.09
41.50

10.67
NA

7.90
21.19

17,433
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

9.31

NA

NA

20.53

12,738

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. #The Scheme is co-managed by Prashant Jain and Srinivas Rao Ravuri. 1. Benchmark 2. Additional Benchmark
13

Disclaimer & Risk Factors

This presentation dated 10th September 2015 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. 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 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. Past performance may or may not be
sustained in future. Neither HDFC AMC and HDFC Mutual 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.

14

Thank You