Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (January 2025)
25 slides from Hdfc Asset Management's investor presentation, Jan 31, 2025
Slide 1: A quality-first approach for your Investments
rusted A quality-first approach for your Investments HDFC NIFTY100 QUALITY 30 INDEX FUND NFO Period: January 31, 2025 to February 14, 2025 Quality investing selects resilient, stable businesses with strong balance sheets which could offer relative stability during market stress. For more information,
Slide 2: What is Quality investing?
What is Quality investing? Quality refers to the level of excellence of goods & services compared to similar items Imagine you are going on a safari deep into the jungle. It is likely you will choose a well-reputed and high quality jeep and safety equipment, as these will be reliable during difficult
Slide 3: How is Quality quantified?
How is Quality quantified? Parameter to measure Quality Metric used How well the company uses its Efficiency Return on Equity equity capital to generate profits Indicates less sensitivity to Earnings per share (EPS) growth Stability business cycle ups and downs variability over last 5 years Less debt
Slide 4: Understanding the Quality factor & Index Methodology
Understanding the Quality factor & Index Methodology* Parameter Nifty100 Quality 30 Index Passively managed strategy Universe / Parent Index Nifty 100 Index Nifty100 Quality 30 Index selects Eligibility criteria for the Index Stocks with F&O and listing history > 1y are eligible top 30 stocks from t
Slide 5: Historical performance during market stress
Historical performance during market stress Nifty100 Quality 30 TRI has historically performed better or in-line with the Nifty 100 and 50 TRI during market stress 15.0% 12.3% Nifty100 Quality 30 TRI Nifty 100 TRI Nifty 50 TRI 10.0% 5.0% 0.0% Returns -5.0% -3.3% -4.0% -3.5% -10.0% -9.5% -15.0% -10.1
Slide 6: Capturing upside, while falling less on the downside
Capturing upside, while falling less on the downside Nifty100 Quality 30 TRI Nifty 100 TRI Avg. Performance during Nifty 100 up years@ 22.2% 22.9% Avg. Performance during Nifty 100 down years@ -5.8% -10.3% While falling less on the downside, the Nifty100 Quality 30 TRI has historically performed in
Slide 7: Why invest in the Quality factor now?
Why invest in the Quality factor now? Winners keep changing among factors Nifty100 Quality Nifty50 Value 20 Nifty Growth Nifty200 Nifty100 Low FY 30 TRI TRI Sectors 15 TRI Momentum 30 TRI Volatility 30 TRI 2011 16.9% 21.3% 25.0% 14.1% 16.3% Heatmap Key 2012 2.2% -5.6% 9.6% -0.3% 4.9% 2013 11.5% 11.5
Slide 8: Why does Quality often trade at a premium?
Why does Quality often trade at a premium? Quality items cost more because they often deliver more utility to users than regular items For example, we are willing to pay more for a dinner at a popular restaurant than for street food. This is because the popular restaurant will likely offer better qu
Slide 9: About the Nifty100 Quality 30 Index
About the Nifty100 Quality 30 Index The Nifty100 Quality 30 Index includes top 30 companies from Top 10 constituents of Nifty100 Quality 30 Index its parent Nifty 100 Index, selected based on their ‘quality’ scores Company Name Weightage (%) The quality score for each company is determined based on
Slide 10: Index constituents
Index constituents Nifty100 Quality 30 Index S.No. Company Name Sector S.No. Company Name Sector 1 ABB India Ltd. Capital Goods 16 HDFC Bank Ltd. Financial Services 2 Asian Paints Ltd. Consumer Durables 17 Hero MotoCorp Ltd. Automobile and Auto Components 3 Bajaj Auto Ltd. Automobile and Auto Compon
Slide 11: Comparative sector distribution
Comparative sector distribution Difference in sector weights vs. Sector Nifty100 Quality 30 Index (%) Nifty 100 Index (%) Nifty 100 Index (%) Fast Moving Consumer Goods 24.9 8.1 16.8 Information Technology 23.0 11.8 11.2 Automobile and Auto Components 14.9 7.0 7.9 Capital Goods 9.2 2.4 6.9 Consumer
Slide 12: Performance since inception
Performance since inception^ CAGR* as on Dec 31, 2024 9000 Indices rebased to 1000 Return Periods Nifty 100 Nifty 100 Nifty 50 8000 Quality 30 TRI TRI TRI 7000 Nifty100 Quality 30 TRI (13.6% CAGR*) 1 year 11.3% 13.0% 10.1% 6000 Nifty 100 TRI (12.4% CAGR*) Nifty 50 TRI (11.9% CAGR*) 3 year 13.3% 12.8
Slide 13: FY performance
FY performance Heatmap FY Nifty100 Quality 30 TRI Nifty 100 TRI Nifty 50 TRI Key Rank 1 Rank 2 Rank 3 FY10 2.5% 5.2% 3.5% Nifty100 FY11 16.9% 11.4% 12.4% Quality 30 TRI FY12 2.2% -7.8% -8.2% Number of Financial FY13 11.5% 8.8% 8.7% 15 Years* FY14 28.1% 19.9% 19.5% Years of FY15 36.4% 30.8% 28.2% out
Slide 14: Rolling returns
Rolling returns Average Rolling Returns Std. Deviation of Rolling Returns Return-Risk Ratio Return Nifty100 Nifty100 Nifty100 Nifty 100 Nifty 50 Nifty 100 Nifty 50 Nifty 100 Nifty 50 Periods Quality 30 Quality 30 Quality 30 TRI TRI TRI TRI TRI TRI TRI TRI TRI 1 year 15.4% 14.1% 13.6% 15.0% 17.2% 16.
Slide 15: Presenting HDFC Nifty100 Quality 30 Index Fund
Presenting HDFC NIFTY100 QUALITY 30 INDEX FUND An Open-ended scheme replicating/tracking the Nifty100 Quality 30 Index (TRI) For disclaimers refer slide 24 15/25
Slide 16: Why invest in HDFC Nifty100 Quality 30 Index Fund?
Why invest in HDFC Nifty100 Quality 30 Index Fund? Long-term growth potential Quality investing selects resilient businesses with strong balance sheets, enabling sustainable growth and compounding returns over the long run Performed well during market stress The Nifty100 Quality 30 Index has histori
Slide 17: Who should invest?
Who should invest? The HDFC Nifty100 Quality 30 Index Fund could be suitable for investors who: Prefer low-cost index exposure to the Quality factor through a portfolio of resilient, stable businesses with strong balance sheets Endeavor to outperform broad market indices on a risk-adjusted basis For
Slide 18: HDFC AMC: Key Strengths in Passives
HDFC AMC: Key Strengths in Passives Trusted for over 20 years Wide Product Range One of the largest funds in Index Solutions across several categories: 19 ETFs, 23 Index Funds & 3 FoFs including: HDFC AMC has been a trusted Market-cap based Index Funds Market-cap based – fund manager in Index 7 ETFs
Slide 19: Fund Facts
Fund Facts HDFC Nifty100 Quality 30 Index Fund Type of Scheme An open ended scheme replicating/tracking Nifty100 Quality 30 Index (TRI) Investment To generate returns that are commensurate (before fees and expenses) with the performance of the Nifty100 Quality 30 (TRI), subject to tracking error. Ob
Slide 20: Asset Allocation Table
Asset Allocation Table Indicative allocations (% of total assets) Instruments Minimum Maximum Securities covered by Nifty100 Quality 30 Index (TRI) 95 100 Debt Securities & Money Market Instruments, units of Debt Schemes 0 5 of Mutual Funds@ @ investments will be made Cash or cash equivalents i.e. G
Slide 21: 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 Nifty100 Quality 30 Index (TRI) over long term, subject to tracking error. • Investment in equity securities cov
Slide 22: Appendix - Nifty100 Quality 30 Index Methodology
Appendix - Nifty100 Quality 30 Index Methodology* Parameter Nifty100 Quality 30 Index Universe / Parent Index Nifty 100 Index Eligibility criteria for the Index Stocks with F&O and listing history > 1y are eligible Metrics used to define factor Return on Equity (ROE), Debt/ Equity ratio (D/E), 5y EPS
Slide 23: Why Smart Beta Investing?
Why Smart Beta Investing? Rules based & transparent Endeavors to provide better risk-adjusted returns than Stock selection and weightage market cap weighted indices determined by index methodology Popular globally Backed by extensive empirical research by academic researchers 2018 16.7% CAGR 2024 6
Slide 24: Disclaimer
Disclaimer The views expressed herein are as of Jan 20, 2025 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 con
Slide 25: Thank You
Thank You
HDFC Asset Management Company — Investor Presentation (January 2025) on 6ix