Accelerate your investments automatically during market lows.

ENROL WITH THE

FLEX STP
A systematic transfer plan that accelerates investments automatically during market lows.
Toll Free: 1 800 233 6767
When the market is bullish, there is no need to worry about your investments. But what happens when the market is down? Presenting HDFC Flex STP. It automatically accelerates your investments on the date of transfer in the chosen equity oriented fund when the markets are down. This means that you can now take advantage of both bullish and bearish markets. Registered Office: Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai 400 020. Tel: 022-6631 6333. Fax.: 022-2282 1144. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Schemes objectives will be achieved and the NAV of the Scheme may go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Investors in the Scheme are not being offered any guaranteed / assured returns. The NAV of the units issued under the Scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. Please read the Scheme Information Document and Statement of Additional Information before investing. HDFC Flex STP in any manner whatsoever is not an assurance or promise or guarantee on part of HDFC Mutual Fund/HDFC Asset Management Company Limited to the Unit holders in terms of returns or capital appreciation or minimization of loss of capital or otherwise. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of ` 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFC Asset Management Company Limited as the Investment Manager.

HDFC Flex STP

STP is a facility wherein unit holder(s) of designated open-ended scheme(s) of a Mutual Fund can opt to transfer a fixed amount at regular intervals to another designated open-ended scheme(s) of the same Mutual Fund, available for investment at that time. Normally, the amount is invested in a debt-oriented scheme from where the amount is transferred to an equity-oriented scheme. STP is suitable under various conditions. For investors, who have a lump sum investible surplus say, receipts from bonus, legacy, sale of residential property, etc. but would not like to invest the same in an equity fund at one go, this is an ideal investment tool. Also, when the equity markets are volatile one would like to invest a certain amount of money, STP offers a chance to the investor to invest in the equity markets in a phased manner. STPs are also useful when the investor prefers to have the consistency of debt returns while slowly investing in equities to generate higher returns.

What is Systematic Transfer Plan (STP) and when is it suitable?

Benefits of HDFC Flex STP

1. HDFC Flex STP allows investors to take advantage of bearish phases in the market 2. At the same time, continue with regular STP and benefit from the power of compounding 3. Removes emotions from the decision making process 4. Initial investments in select debt/liquid funds enhance total returns 5. Take advantage of the market movements without hassles 6. Investments in schemes with a long term track record

What are the salient features of HDFC Flex STP (Flex STP)?
HDFC Mutual Fund offers HDFC Flex STP with wide flexibility in order for the investor to plan his investments according to his financial goals. The following are the salient features: 1. Presently, Minimum Amount of Transfer is ` 500 for Daily Flex STP, ` 1,000 for Weekly & Monthly Flex STP and ` 3,000 for Quarterly Flex STP. 2. Frequency of transfer under Flex STP: Daily Weekly Monthly Quarterly
3. Dates available for transfer

Under the Flex STP, unit holders will be eligible to transfer {fixed amount to be transferred per installment or the amount as determined by the following formula [(fixed amount to be transferred per installment X number of installments including the current installment) - market value of the investments through Flex STP in the Transferee Scheme on the date of transfer] whichever is higher} on the date of transfer. Invest more when the markets are down - Accelerated investments on the date of transfer in the chosen equity oriented fund when markets are down In a bullish market, continue with normal STP - Aids in keeping the power of compounding on your side in the long term Automatic tactical asset allocation - Advantage of investing more at lower levels Active management of the investment portfolio

Presenting HDFC Flex STP How it is different from regular STP?

Frequency Daily of Flex STP

Dates available

Weekly

Monthly
1st, 5th, 10th, 15th, 20th and 25th of every month*

Quarterly
1st, 5th, 10th, 15th, 20th and 25th of the first month of every quarter*

All Every Friday * Business Days

It helps investors to transfer their money from select debt/liquid schemes to growth option of select equity schemes of HDFC Mutual Fund similar to normal STPs. In case of falling markets, the investor is able to benefit by automatically transferring more money on the date of transfer from debt/liquid funds to equity schemes as chosen and this offers an automated route for tactical asset allocation.

Objective of HDFC Flex STP

E xample of HDFC Flex STP - Monthly Interval

Flex STP Month NAV per Unit (Rs.) 1 10 12 11 9 7 8 10 12 13 14 15 13 Market Value (Rs.) 2 0.00 6,000.00 10,083.33 12,340.91 15,555.56 28,571.43 41,964.29 56,357.14 66,470.24 76,967.95 87,822.80 78,623.36 Amount Invested* (Rs.) 3 5,000 5,000 5,000 7,659 9,444 5,000 5,000 5,000 5,000 5,000 2,896 Cumulative Amount Invested (Rs.) 4 5,000 10,000 15,000 22,659 32,104 37,104 42,104 47,104 52,104 57,104 60,000 Units Bought

* Next Business Day, in case the date of transfer falls on a non-Business Day. 4. Minimum amount of unit holders balance or minimum amount of application at the time of Flex STP enrolment in the Transferor Scheme: ` 12,000. 5. Minimum number of installments for enrolment under Daily Flex STP : Minimum of 12 installments where instalment amount is less than ` 1,000/-. Minimum of 6 installments where instalment amount is equal to or greater than ` 1,000/-. Minimum of 6 installments for enrolment under Weekly and Monthly Flex STP and 2 installments for Quarterly Flex STP. Note: For terms and conditions, refer to HDFC Flex STP Enrolment Form available with the ISCs/ broker/ distributors. The form is also available on HDFC Mutual Fund website i.e. www.hdfcfund.com. Please read the terms and conditions of HDFC Flex STP carefully before enrolment.
Regular STP Amount Invested (Rs.) 8 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Cumulative Amount Invested (Rs.) 9 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 Units Bought Cumulative Units Bought 11 500.00 916.67 1,371.21 1,926.77 2,641.05 3,266.05 3,766.05 4,182.72 4,567.34 4,924.48 5,257.81 5,642.43 Net Average Cost per Unit (Rs.) 12 = 9/11 10.00 10.91 10.94 10.38 9.47 9.19 9.29 9.56 9.85 10.15 10.46 10.63 Market Value (Rs.) 13 = 11*1 5,000.00 11,000.00 15,083.33 17,340.91 18,487.37 26,128.43 37,660.53 50,192.64 59,375.36 68,942.70 78867.17 73,351.55

Net Cumulative Average Units Cost per Bought Unit (Rs.) 6 500.00 916.67 1,371.21 2,222.22 3,571.43 4,196.43 4,696.43 5,113.10 5,497.71 5,854.85 6,047.95 7 10.00 10.91 10.94 10.20 8.99 8.84 8.97 9.21 9.48 9.75 9.92

January-09 February-09 March-09 April-09 May-09 June-09 July-09 August-09 September-09 October-09 November-09 December-09

5 500.00 416.67 454.55 851.01 1,349.21 625.00 500.00 416.67 384.62 357.14 193.10

10 = 8/1 500.00 416.67 454.55 555.56 714.29 625.00 500.00 416.67 384.62 357.14 333.33 384.62

Total Units Purchased Total Amount Invested (Rs.) Final Market Value (Rs.) Net Average Cost Per Unit (Rs.)

6,047.95 60,000.00 78,623.36 9.92

5,642.43 60,000.00 73,351.55 10.63

* Amount Invested in Flex STP is higher of the fixed amount to be transferred per installment or the amount as determined by the following formula [(fixed amount to be transferred per installment X number of installments including the current installment) - market value of the investments through Flex STP in the Transferee Scheme on the date of transfer]. As seen in the above Example by investing through HDFC Flex STP, you end up buying More Units with Higher Final Market Value and Lower Net Average Cost Per Unit !! Disclaimer : This is just an illustration explaining the concept of Flex STP using assumed fiqures. The above illustration is merely indicative in nature and should not be construed as an investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual Fund Scheme(s).

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