HDFC Asset Management Co. Ltd. · NSE:HDFCAMC
HDFC Asset Management — Investor Presentation (February 2022)
25 slides from HDFC Asset Management's investor presentation, February 2022
Slide 1: Why settle for a Century when you can score a Double!
Why settle for a NFO : Century when you r i o d P e 2022 to can score a Double! th F e b 1 1 2 th f e b 2 0 2 18 Presenting HDFC NIFTY 100 Index Fund and HDFC NIFTY100 Equal Weight Index Fund 01 Refer disclaimers on page 24
Slide 2: Two of a Kind, Yet Different
Two of a Kind, Yet Different NIFTY 100 Index NIFTY100 Equal Weight Index Largest 100 companies based on Comprises same constituents as Construct full market capitalisation* NIFTY 100 Index. Impact of companies Companies with a larger market cap All companies contribute equally; with higher market ca
Slide 3: NIFTY 100 Index Universe
NIFTY 100 Index Universe Covers 68% of the Indian listed space Market Capitalization NIFTY 100 Index INR 176 Tn NIFTY 50 Index INR 138 Tn India Listed Cos Total INR 258 Tn 68% NIFTY 100 Index NIFTY 50 Index 53% 01 Higher coverage of Indian listed space Exposure to sectors which are not covered in th
Slide 4: NIFTY 100 or NIFTY100 Equal Weight Index?
NIFTY 100 or NIFTY100 Equal Weight Index? NIFTY 100 Index NIFTY100 Equal Weight Index Larger companies (by market cap) All companies have equal weights have higher weights Tends to outperform during periods Outperforms in broad based rallies of polarisation* Removes momentum bias and bets on Acts as
Slide 5: NIFTY 100 vs NIFTY100 Equal Weight Index - same companies, different weights
NIFTY 100 Index vs NIFTY100 Equal Weight Index - same companies, different weights Top 10 Stocks Bottom 10 Stocks Weightage (%) Weightage (%) Security Name NIFTY 100 NIFTY100 Security Name NIFTY 100 NIFTY100 Index Equal Weight Index Equal Weight Index Index Reliance Industries 9.2 1.0 Muthoot Financ
Slide 6: Diversified Sector Allocation
Diversified Sector Allocation But with different mix NIFTY100 NIFTY100 Equal Sector Weights NIFTY 100 NIFTY 100 Index Equal Weight Weight Index Financial Services 33.3 23.1 Top 3 weights 63% 51% IT 16.7 6.0 Higher weights, Financial services, IT Consumption, Consumer goods and services 13.2 18.1 rel
Slide 7: Performance Journey: NIFTY 100 and NIFTY100 Equal Weight
Performance Journey: NIFTY 100 and NIFTY100 Equal Weight 3500 INR 100 invested in both indices at the start of Jan 2003 Returns CAGR returns over the NIFTY 100 NIFTY100 Equal Weight 19.2% past NIFTY 100 TRI NIFTY100 Equal 3000 Weight TRI (28 times*) 19 Years 18.0% 19.2% 2500 15 Years 12.1% 12.9% 18.
Slide 8: Similar performance, yet a different journey
Similar performance, yet a different journey NIFTY 100 NIFTY100 EW Difference FY04 97% 134% 37% Summary of FY performance FY05 19% 27% 8% NIFTY100 FY06 68% 60% -8% Particulars NIFTY 100 Equal Weight FY07 14% 6% -8% Number of FY 19 19 FY08 24% 22% -2% FY09 -37% -39% -3% Positive return years 15 15 FY
Slide 9: Broad based / narrow market movements
Broad based / narrow market movements Sum of top 10 weights - NIFTY 100 index 56 54 Above average weight signifies 52 polarized market 50 (weights) 48 46 44 42 Below average weight signifies broad market 40 Polarised markets favor market cap weighted indices. Broad based markets favor equal weight i
Slide 10: Make your own combo of NIFTY 100 strategies
Make your own combo of NIFTY 100 strategies Holding 10 year 5 year 3 year Periods No. of obs 2,228 observations 3,467 observations 3,966 observations NIFTY100 NIFTY100 NIFTY100 NIFTY 100 50-50* NIFTY 100 50-50 NIFTY 100 50-50 Equal Weight Equal Weight Equal Weight Average 13.5% 14.2% 13.8% 14.3% 14.
Slide 11: Key numbers - Current valuations
Key numbers - Current valuations Index NIFTY 100 NIFTY100 EW Valuations PE 24.08 19.25 Source: Niftyindices.com, PB 4.38 3.25 Data as of 31 Dec 2021 Dividend Yield 1.21 1.84 PE Ratio PB Ratio Dividend Yield ₹ The (P/E) ratio of an index is the weighted The price/book (P/B) ratio of an Index is the w
Slide 12: HDFC Mutual Fund – Index Solutions
HDFC Mutual Fund – Index Solutions From a fund house managing Index Funds for over 19 years Refer disclaimers on page 24 15 12
Slide 13: Index Investing driven by Values, Scale and Experience
Index Investing driven by Values, Scale and Experience Values ‘Investor first’ approach of HDFC Mutual Fund. Scale HDFC AMC is amongst the largest investment managers overall - and in the Index Fund category* as well. Our scale enables us to derive efficiency in terms of cost and deliver best in cla
Slide 14: Our approach: Index Selection
Our approach : Index Selection What we look for in an Index A rigorous process to screen, evaluate, and select Selection of indices with an aim to achieve a good 01 benchmarks 02 representation of target market segments Major, recognisable and transparent core indices Construction based on objective
Slide 15: Our Bouquet of Index Solutions
Our Bouquet of Index Solutions Existing solutions HDFC Index Fund - 01 NIFTY 50 Plan Index funds through this NFO HDFC NIFTY50 Equal HDFC NIFTY 100 02 01 Weight Index Fund Index Fund HDFC Index Fund - HDFC NIFTY100 Equal 03 02 SENSEX Plan Weight Index Fund HDFC NIFTY Next 50 04 Index Fund Refer disc
Slide 16: HDFC NIFTY 100 Index Fund and HDFC NIFTY100 Equal Weight Index Fund
Presenting HDFC NIFTY 100 Index Fund and HDFC NIFTY100 Equal Weight Index Fund Open ended schemes replicating / tracking the NIFTY 100 Index and NIFTY100 Equal Weight Index, respectively Proxy for Indian Large Caps Refer disclaimers on page 24 16
Slide 17: About the Funds
About the Funds About: About: HDFC NIFTY 100 Index Fund HDFC NIFTY100 Equal Weight Index Fund To generate returns that are commensurate To generate returns that are commensurate Investment (before fees and expenses) with the (before fees and expenses) with the Objective performance of the NIFTY 100
Slide 18: Summary
Summary HDFC MF Index Solutions - an experienced partner for passive funds: 19+ years of managing index solutions. HDFC MF Index Solutions has Scale and Size: It is a leading investment manager (in terms of AUM) in the index fund category* One of the lowest tracking error in the industry$ Two strate
Slide 19: Fund Facts
Fund Facts HDFC NIFTY 100 Index HDFC NIFTY100 Equal Weight Index An open ended scheme replicating/tracking An open ended scheme replicating/tracking NIFTY100 Type of Scheme NIFTY 100 Index (TRI) Equal Weight Index (TRI) The investment objective of the Scheme is to generate The investment objective o
Slide 20: Asset Allocation
Asset Allocation Under normal circumstance, the asset allocation of the scheme’s portfolio will be as follows: Type of Instruments Minimum Allocation Maximum Allocation Risk Profile (% of Total Assets)* (% of Total Assets)* Securities covered by 95 100 Very High Underlying Index# Debt Securities & M
Slide 21: Product Labelling
Product Labelling Name of Scheme This product is suitable for investors who are seeking* Riskometer# • Returns that are commensurate (before fees and expenses) with HDFC NIFTY 100 Index Fund the performance of the NIFTY 100 Index (TRI) over long term, subject to tracking error. • Investment in equit
Slide 22: Scheme Riskometers
Scheme Riskometers Name of Scheme Riskometer of the Scheme HDFC Index Fund - SENSEX Plan HDFC NIFTY50 Equal Weight Index Fund HDFC Index Fund - NIFTY 50 Plan Investors understand that their principal will be at very high risk HDFC NIFTY Next 50 Index Fund Refer disclaimers on page 24 22
Slide 23: Stock Liquidity Risk in the event of Circuit Filter
Stock Liquidity Risk in the event of Circuit Filter Liquidity of stocks which are available only in cash segment and not in F&O segment gets adversely impacted in the event of a circuit filter imposed by any of the stock exchanges. This would be dealt with in the manner described below. Transaction
Slide 24: Disclaimer
Disclaimer The views expressed herein are as of 3rd February, 2022 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 informat
Slide 25: Thank You
THANK YOU
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