Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (October 2021)
28 slides from Hdfc Asset Management's investor presentation, October 2021
Slide 1: It's All About the 'Next' NIFTY 50!
IT’S ALL ABOUT THE ‘NEXT’ NIFTY 50! NFO Period: 2 2 nd O c t , 2 0 2 1 t o 2 9 th O C t , 2021 HDFC NIFTY NEXT 50 INDEX FUND An open ended scheme replicating/tracking NIFTY Next 50 Index (TRI)
Slide 2: Market Capitalization
Market Capitalization NIFTY 50 Index Weighted Average Market NIFTY Next 50 Index Weighted Average capitalization – Rs. 5,84,121 Cr Market capitalization – Rs. 86,918 Cr In Rs Crore In Rs Crore Total Market Cap Free Float Market Total Market Cap Free Float Market Largest 1,597,064 814,503 Largest 275
Slide 3: About NIFTY Next 50 Index
About NIFTY Next 50 Index Represents 50 companies from Cumulative weight of index constituents 01 NIFTY 100 after excluding the 02 that are not available for trading in F&O constituents of NIFTY 50. segment (Non F&O stocks) is capped at 15% on quarterly rebalance dates*. Weightages of non F&O stocks
Slide 4: Why NIFTY Next 50 Index Fund?
Why NIFTY Next 50 Index Fund ? 04
Slide 5: Reasons to invest in NIFTY Next 50 Index
Reasons to invest in NIFTY Next 50 Index 01 02 03 04 Offers Offers higher Provides Could Diversification potential for Exposure generate Benefit at growth with to unique better Risk stocks and next league businesses Adjusted sector Level of probable Returns in Blue Chips Long Term Refer page 6 & 8 R
Slide 6: NIFTY Next 50: Diversified with a different flavour
NIFTY Next 50 : Diversified with a different flavour 40.0 37.2 35.0 30.0 27.7 25.0 19.9 20.0 17.4 15.0 12.3 10.7 11.1 10.2 10.4 10.0 8.3 5.4 5.4 5.0 3.6 3.4 3.9 3.7 2.9 1.7 2.5 2.1 0.0 Financial Consumer Metals Pharma Oil & Gas Power Cement Healthcare Chemicals IT Others Services Goods & & Cement Se
Slide 7: NIFTY Next 50: More themes on your plate
NIFTY Next 50 : More themes on your plate Financial Services Consumer Goods Sectors NIFTY Next 50 NIFTY 50 Sectors NIFTY Next 50 NIFTY 50 Bank 4.7 25.1 PERSONAL CARE 10.97 3.16 NBFC 4.5 2.7 CIGARETTES & RELATED PRODUCTS 2.70 Insurance 5.4 3.0 PAINTS 1.59 1.91 Other Financial Services 4.0 GEMS JEWELL
Slide 8: NIFTY Next 50: Offers balanced allocation
NIFTY Next 50 : Offers balanced allocation 40.78 Top 5 Stocks 18.04 58.30 Top 10 Stocks 32.89 76.91 Top 20 Stocks 56.66 Bottom 10 Stocks 5.37 11.06 0 10 20 30 40 50 60 70 80 90 NIFTY 50 Index NIFTY Next 50 Index Details as on Sept 30, 2021. Source : www.niftyindices.com NIFTY Next 50 Index median st
Slide 9: NIFTY Next 50: Basket of tomorrow's NIFTY 50 Companies
NIFTY Next 50 : Basket of tomorrows NIFTY 50 Companies In Last 19 years, majority of inclusion in the NIFTY 50 Yearly Details of Stock Movement to NIFTY 50 from NIFTY Next 50 Index are from NIFTY Next 50 Index Year Stock Name Year Stock Name Sun Pharmaceutical Industries Ltd. 2013 IndusInd Bank Ltd.
Slide 10: Performance Journey: NIFTY 50 Vs NIFTY Next 50
Performance Journey : NIFTY 50 Vs NIFTY Next 50 45000 Value of Rs. 1 lac invested on Nov 08, 2002 22.0% NIFTY Next 50 Index TRI – Rs. 43.2 lacs 40000 NIFTY50 Index TRI – Rs. 23.8 lacs 35000 30000 25000 18.3% 20000 NIFTY Next 50 has 15000 generated excess 10000 return of 3.7% CAGR 5000 over last 19 y
Slide 11: Relative FY Performance: NIFTY50 and NIFTY Next 50
Relative FY Performance : NIFTY50 and NIFTY Next 50 Summary of FY Performance NIFTY 50 NIFTY Next NIFTY 50 NIFTY Next Period Period TRI 50 TRI TRI 50 TRI Particulars NIFTY 50 TRI NIFTY Next 50 TRI Mar-04 86.3% 176.4% Mar-14 19.5% 21.9% No. of FY 18 18 Mar-05 17.3% 28.8% Mar-15 28.2% 45.6% Positive R
Slide 12: Performance Across Market Cycles
Performance Across Market Cycles : NIFTY50 and NIFTY Next 50 P1- Global Financial Crisis Lows : 08-Jan-08 to 150% 09-Mar-09 P2 - Post Crisis Recovery : 09-Mar-09 to 09-Nov-10 100% P3 - Eurozone Debt Crisis : 09-Nov-11 to 30-Jan-12 50% P4 - P4-Policy paralysis : 30-Jan-12 to 31-Aug-13 P5 - Oil Price
Slide 13: Rolling Return Analysis
Rolling Return Analysis : NIFTY 50 and NIFTY Next 50 Average Rolling Returns Outperformance of Number of Period NIFTY Next 50 TRI Observations NIFTY Next 50 TRI NIFTY 50 TRI 1 Year 4,445 26.5 20.3 6.3 3 Years 3,942 18.2 15.7 2.4 5 Years 3,440 16.8 14.0 2.8 10 Years 2,200 15.9 13.0 3.0 15 Years 965 1
Slide 14: Return Risk Ratio: NIFTY Next 50 TRI Vs NIFTY 50 TRI
Return Risk Ratio : NIFTY Next 50 TRI Vs NIFTY 50 TRI CAGR Returns Annualised Volatility Return-Risk Ratio Periods NIFTY 50 TRI NIFTY Next 50 TRI NIFTY 50 TRI NIFTY Next 50 TRI NIFTY 50 TRI NIFTY Next 50 TRI 1 Year 58.5% 57.7% 15.4% 14.8% 3.81 3.89 3 Years 18.6% 16.9% 21.8% 20.2% 0.86 0.83 5 Years 1
Slide 15: HDFC Mutual Fund – Index Solutions
HDFC Mutual Fund – Index Solutions From the house that is managing index funds for over 19 years 15
Slide 16: 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 including-the index Fund category*. Our scale enables us to derive efficiency in terms of cost and deliver best in class performance.
Slide 17: 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 18: Presenting HDFC NIFTY Next 50 Index Fund
Presenting HDFC NIFTY Next 50 Index Fund An open ended scheme replicating/ tracking NIFTY Next 50 Index (TRI) 18
Slide 19: About: HDFC NIFTY Next 50 Index Fund
About : HDFC NIFTY Next 50 Index Fund Investment Objective To generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Next 50 Index TRI (Underlying Index), subject to tracking error. There is no assurance that the investment objective of the Scheme will be
Slide 20: Summary
Summary HDFC AMC has an experience of 19 years and is one of the oldest in the industry in managing passive funds. It is also a leading investment manager (in terms of AUM) in the index fund category. Track record of managing tracking error as one of the lowest in the industry$. HDFC NIFTY Next 50 I
Slide 21: Fund Facts
Fund Facts Type of Scheme An open ended scheme replicating/tracking NIFTY Next 50 Index (TRI) To generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Next 50 Index TRI Investment Objective (Underlying Index), subject to tracking error. There is no assur
Slide 22: Asset Allocation
Asset Allocation Under normal circumstance, the asset allocation of the scheme’s portfolio will be as follows: Minimum Allocation Maximum Allocation Risk Profile of the Type of Instruments (% of Total Assets)* (% of Total Assets)* Instrument Securities covered by 95 100 Very High NIFTY Next 50 Index
Slide 23: Annexure
Annexure 23
Slide 24: Constituent & Weight Details of NIFTY Next 50 Index
Constituent & Weight Details of NIFTY Next 50 Index Sl No. SECURITY_NAME Sector Weight % 1 INFO EDGE (INDIA) LTD. Consumer Services 4.03 2 AVENUE SUPERMARTS LTD. Consumer Services 3.80 3 APOLLO HOSPITALS ENTERPRISE LTD. Healthcare Services 3.66 4 ICICI LOMBARD GENERAL INSURANCE COMPANY LTD. Financia
Slide 25: Constituent & Weight Details of NIFTY Next 50 Index
Constituent & Weight Details of NIFTY Next 50 Index Sl No. SECURITY_NAME Sector Weight % 26 CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY Financial Services 1.80 27 AUROBINDO PHARMA LTD. Pharma 1.65 28 BERGER PAINTS INDIA LTD. Consumer Goods 1.59 29 INTERGLOBE AVIATION LTD. Services 1.58 30 HINDUSTAN
Slide 26: Current Index Valuations: NIFTY 50 Vs NIFTY Next 50
Current Index Valuations PE PE FWD : NIFTY PB ROE50 Vs Dividend Yield NIFTY NIFTY 50 Index Next NIFTY Next 50 Index 50 26.98 26.65 21.1 22.1 4.41 4.37 13.38 13.45 1.17 1.22 Index PE PE FWD PB ROE Dividend Yield NIFTY 50 Index 26.98 21.1 4.41 13.38 1.17 Details as on Sept 30, 2021. Source : www.nifty
Slide 27: 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 also impact the subscription and redemption of ETF units,
Slide 28: Disclaimer & Risk Factors
Disclaimer & Risk Factors This presentation dated October 13, 2021 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 onl
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