Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (October 2024)
25 slides from Hdfc Asset Management's investor presentation, October 2024
Slide 1: Add momentum to your goals
rusted Add momentum to your goals HDFC NIFTY200 Momentum 30 Index Fund An open ended scheme replicating/tracking NIFTY200 Momentum 30 Index (TRI) HDFC Asset Management Company Limited has been managing equity Index Solutions for over 20 years. For disclaimers refer slide 24
Slide 2: Why Smart Beta Investing?
Why Smart Beta Investing? Endeavors to provide better Rules based & transparent Backed by extensive empirical risk-adjusted returns than Stock selection and weightage research by academic market cap weighted indices determined by index methodology researchers and index providers^ 16.7% CAGR Popular
Slide 3: Introduction
Introduction Momentum-based Smart Beta investing involves stock selection and weighting based on the Momentum factor, rather than size (market cap) which is used for commonly followed indices like NIFTY 50 NIFTY200 Momentum 30 Index selects top 30 stocks from the NIFTY 200 based on their Normalized
Slide 4: Understanding the Momentum Factor & Index Methodology
Understanding the Momentum Factor & Index Methodology* Momentum NIFTY200 Momentum 30 Index selects top 30 stocks from the NIFTY 200 based on their Normalized What? Momentum Score (NMS) Momentum index adapts to changing market conditions as stock market winners keep changing Why? The strategy has his
Slide 5: Simplified Illustration: Choosing high Momentum Stocks
Simplified Illustration: Choosing high Momentum Stocks Returns Momentum Ratio (MR) Std. Deviation of Daily Stock Selection Returns (12 month) 50% 6 month + 6 month 12 month 6 month 12 month 50% 12 month MR A 30% 60% 17% 1.8 3.5 2.6 Yes B 20% 30% 25% 0.8 1.2 1.0 Yes C -15% 45% 21% -0.7 2.1 0.7 No D 1
Slide 6: Index adapts to changing market conditions (1)
NIFTY200 Momentum 30 Index adapts to changing market conditions as stock market winners keep changing(1) Sector comparison – in %, by calendar year 100.0 Inf Power Te orm Capital Goods 90.0 16.5 ch a n o t io lo g n 4.9 Hea Oil Gas & Consumable Fuels 7.8 He 30.7 lt h c a lt y are Automobile and Auto
Slide 7: Index adapts to changing market conditions (2)
NIFTY200 Momentum 30 Index adapts to changing market conditions as stock market winners keep changing(2) Momentum in Action – Some examples Period Sector Index 6 month return 12 month return Impact on NIFTY200 Momentum 30 Index Dec-20 NIFTY IT Index 50.5% 37.2% Increased weight to IT stocks Dec-20 N
Slide 8: About the NIFTY200 Momentum 30 Index
About the NIFTY200 Momentum 30 Index Top 10 constituents of NIFTY200 Momentum 30 Index The parent NIFTY 200 Index contains the largest* 100 Company Name Weightage (%) largecaps and 100 midcaps by market cap Trent Ltd. 6.61 The NIFTY200 Momentum 30 Index aims to track the Bajaj Auto Ltd. 5.96 perform
Slide 9: Providing exposure to largecaps and midcaps
NIFTY200 Momentum 30 Index – Providing exposure to largecaps and midcaps S.No. Company Name Large/ Midcap S.No. Company Name Large/ Midcap 1 ABB India Ltd. Large Cap 16 REC Ltd. Large Cap 2 Adani Ports and Special Economic Zone Ltd. Large Cap 17 Siemens Ltd. Large Cap 3 Bajaj Auto Ltd. Large Cap 18
Slide 10: Comparative Sector Distribution
NIFTY200 Momentum 30 Index – Comparative Sector Distribution Sector NIFTY200 Momentum 30 (%) NIFTY 200 (%) Differences vs Benchmark (%) Capital Goods 21.9 4.3 17.6 Automobile and Auto Components 22.9 7.6 15.3 Power 9.6 4.3 5.3 Telecommunication 7.3 3.3 4.0 Services 4.6 1.6 3.0 Consumer Services 6.6
Slide 11: Performance since inception
NIFTY200 Momentum 30, NIFTY 200 and NIFTY 50 TRI – Performance since inception CAGR* as on Sep 30, 2024 50000 Return Periods NIFTY200 45000 NIFTY 200 NIFTY 50 Momentum 30 40000 NIFTY200 Momentum 30 TRI (21.8% CAGR*) TRI TRI TRI 35000 NIFTY 200 TRI (15.4% CAGR*) 1 year 63.6% 40.4% 33.0% 30000 NIFTY 5
Slide 12: FY Performance
NIFTY200 Momentum 30, NIFTY 200 and NIFTY 50 TRI – FY Performance NIFTY200 NIFTY 200 TRI NIFTY 50 TRI Market Situation Momentum 30 TRI FY06 79.7% 63.7% 67.4% Market peak before Heatmap Key Rank 1 Rank 2 Rank 3 FY07 4.7% 11.0% 14.3% Global Financial Crisis FY08 40.9% 23.5% 25.1% FY09 -34.9% -38.5% -3
Slide 13: Rolling Returns
NIFTY200 Momentum 30, NIFTY 200 and NIFTY 50 TRI – Rolling Returns Average Rolling Returns Std. Deviation of Rolling Returns Return-Risk Ratio Return Periods NIFTY200 NIFTY200 NIFTY200 Momentum 30 NIFTY 200 NIFTY 50 Momentum 30 NIFTY 200 NIFTY 50 Momentum 30 NIFTY 200 NIFTY 50 TRI TRI TRI TRI TRI TR
Slide 14: Presenting HDFC NIFTY200 Momentum 30 Index Fund
Presenting HDFC NIFTY200 Momentum 30 Index Fund An Open-ended scheme replicating/tracking the NIFTY200 Momentum 30 (TRI) For disclaimers For disclaimers refer refer slide slide 22 24 14/25
Slide 15: Why invest in HDFC NIFTY200 Momentum 30 Index Fund?
Why invest in HDFC NIFTY200 Momentum 30 Index Fund? Growth Potential Rules based Dynamic Strategy Lower Cost & transparent NIFTY200 Momentum Ideal vehicle for Endeavors to provide better risk-adjusted Stock selection and 30 Index adapts to long-term investment returns than market cap weightage deter
Slide 16: Who should invest? What are the key risks?
Who should invest? What are the key risks? The HDFC NIFTY200 Momentum 30 Index Fund could be suitable for investors who: Prefer low-cost index exposure to the Momentum factor, which endeavors to outperform broad market indices Have a high volatility tolerance Key Risks Index constituents are selecte
Slide 17: HDFC AMC: Key Strengths in Passives
HDFC AMC: Key Strengths in Passives Trusted for 20 in Wide Product Range One of the largest funds Index Solutions across several categories: 19 ETFs, 21 Index Funds & HDFC AMC has been a trusted fund 3 FoFs including: Market-cap based Index Funds manager in Index Solutions for Market-cap based– 7 ET
Slide 18: Fund Facts: HDFC NIFTY200 Momentum 30 Index Fund
Fund Facts: HDFC NIFTY200 Momentum 30 Index Fund HDFC NIFTY200 Momentum 30 Index Fund Type of Scheme An open ended scheme replicating/tracking NIFTY200 Momentum 30 Index (TRI) To generate returns that are commensurate (before fees and expenses) with the performance of the Investment NIFTY200 Momentu
Slide 19: Asset Allocation Tables
Asset Allocation Tables – HDFC NIFTY200 Momentum 30 Index Fund Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme’s portfolio will be as follows: Minimum Allocation Maximum Allocation Types of Instruments Risk Profile (% of Total Assets) (% of Total Assets) Securities co
Slide 20: Product Labeling and Riskometer
Product Labeling and Riskometer This product is suitable for investors who are seeking*: Riskometer# • Returns that are commensurate (before fees and expenses) with the performance of the NIFTY200 Momentum 30 Index (TRI), over long term, subject to tracking error. • Investment in equity securities c
Slide 21: Appendix - NIFTY200 Momentum 30 Index Methodology
Appendix - NIFTY200 Momentum 30 Index Methodology* Parameter NIFTY200 Momentum 30 Index Universe / Parent Index NIFTY 200 Eligibility criteria for the Index Stocks with F&O and listing history > 1y are eligible 12 month Momentum Ratio (MR12) = 12 month Price return / σp Metrics used to define factor
Slide 22: Appendix – Simplified Illustration: Choosing high Momentum Stocks
Appendix – Simplified Illustration: Choosing high Momentum Stocks Returns Momentum Ratio (MR) Z-Score Std. Deviation Normalized Stock of Daily Returns Momentum Selection 6 12 6 12 Combined 6 12 Weighted (12 month) Score month month month month 6 & 12 month month Avg. month MR Z-Score A 30% 60% 17% 1
Slide 23: Appendix - Stylized Illustration: Portfolio of high momentum stocks
Appendix - Stylized Illustration: Choosing a portfolio of high momentum stocks with less volatility Downtrend Volatile uptrend Less volatile uptrend The above is an illustration for educative purposes only. HDFC AMC is not guaranteeing or forecasting stock selection. For detailed methodology, please
Slide 24: Disclaimer
Disclaimer The views expressed herein are as of October 18, 2024 and are 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
Slide 25: Thank You
Thank You
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