Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (June 2025)
45 slides from Hdfc Asset Management's investor presentation, June 2025
Slide 1: HDFC Innovation Fund - Investing in the future today
DEFENCE PHARMACEUTICAL BUSINESS MODEL STARTUP INNOVATION TOKENISATION TRANSFORMATION EV RADICAL INDIA POWERED DIGITAL PLATFORMS QUICK COMMERCE DISRUPTIVE DISCOVERY INVENTION TECHNOLOGY DESIGN BY INNOVATION GREEN INNOVATION ENERGY SOLAR ARTIFICIAL INTELLIGENCE FINTECH UPI BREAKTHROUGH COST INNOVATION
Slide 2: Innovation can be of Different Types
Innovation can be of Different Types What is Innovation? Process of introducing new ideas, services, or products – or improve existing ones – to create value, solve problems, and maintain a competitive edge Product Innovation Process Innovation Business Model Innovation Radical* Notable change from
Slide 3: Innovation in Indian Context
Innovation in Indian Context From Tradition to Transformation For disclaimer refer slide 44 03/45
Slide 4: Financial Services – Innovation increasing Access
Financial Services – Innovation increasing Access Combined Share of Active Clients of top 2 Fintech Broking THEN NOW Platforms increased by ~2x between Dec-20 and Apr-25 Market Share of Top 2 Fintech Broking Platforms 45% 42.3% 40% 35% 30% 25% 20.9% 20% 15% Dec-20 Apr-25 No. of Policies sold online
Slide 5: Financial Services – UPI has been Transformational
Financial Services – UPI has been Transformational THEN NOW Share of Transactions through Physical Channel for a Leading Increasing Adoption of UPI* transforming the way wetransact Public Sector Bank has reduced 25% 23.2% 10% 9.1% 90% 8.2% 85% 8% 6.7% 80% 20% 6% 4.8% 75% 15% 70% 4% 2.9% 65% 2% 60% 1
Slide 6: Quick Commerce – Business Model Innovation in Retail
Quick Commerce – Business Model Innovation in Retail THEN NOW Quick Commerce GMV* expected to grow by ~6x by FY27 20 *Gross Merchandise Value in US$ billion 18 17.5 16 14 12 10 8 6 4 3.3 2 0.2 0 FY20 FY24 FY27E Source: Morgan Stanley For disclaimer refer slide 44 06/45
Slide 7: Autos – Design Innovation leading to Market Share Gains
Autos – Design Innovation leading to Market Share Gains THEN NOW Design Innovation of Leading Indian Auto Manufacturer leading to Gains in PV* Market Share Pickup in Innovative 14% Strategies leading to increase in 12.7% Market Share 12% 10.9% 10% 9.2% 8% 7.6% 7.5% 7.4% 6.8% 6% 5.8% 4% 2% 0% 2018 20
Slide 8: Defence – A Sector evolving through Cost Innovation
Defence – A Sector evolving through Cost Innovation India’s Defence Capital Expenditure as a % of Total Defence Budget has risen Defence Capital Expenditure (As % of Total Defence Budget) Key Parameters of US’s Apache Key Parameters of India’s Light Combat Helicopter 48% 45.0% 44.1% Service Ceiling
Slide 9: Staying Ahead of the Curve
Staying Ahead of the Curve Innovation important for Economic Prosperity and Market Leadership For disclaimer refer slide 44 09/45
Slide 10: Historically, Innovation has had a Positive Impact on Economic Growth
Historically, Innovation has had a Positive Impact on Economic Growth Countries that adopted innovative strategies in different sectors / segments have witnessed a multiplier effect on Real GDP growth in different periods High Growth Real GDP Sectors / Segments contributing Countries Innovations in
Slide 11: Decreasing Length of Cycles of Innovation making Adaptation important
Decreasing Length of Cycles of Innovation making Adaptation important Average lifespan of a Average lifespan of a Average lifespan of a US S&P 500 company US S&P 500 company US S&P 500 company Innovative strategies that drove a company / in late 1970s between 2000 and 2020 by 2028 sector yesterday m
Slide 12: Lower Cost driving Higher Adoption of New Technologies
Lower Cost driving Higher Adoption of New Technologies Price of Lithium-ion Batteries have been on the decline Lower Battery Costs to continue to increase the adoption rate of EVs in China 700 600 48% 222 50% 43% 500 39% 40% 35% 400 31% 27% 300 30% 22% 25% 200 470 20% 59 33 20% 32 25 23 13% 100 20 1
Slide 13: Higher Contribution to Profit Pool led Innovators to be Wealth Generators
Higher Contribution to Profit Pool led Innovators to be “Wealth Generators” across countries Sectors that have contributed to the overall profit pool of the broad equity market index curve have witnessed an increase in weightage over time compared to the laggards EPS* of the Magnificent 7 has grown at
Slide 14: Innovation can happen not just in Technology!
Innovation can happen not just in Technology! Transition from Fossil Fuel-based Cars to Electric Vehicles has led Increased usage of Online Streaming Platforms has led Tesla to outperform the Auto Index by ~30x! Netflix to outperform Traditional Media and Entertainment 70,000 Channels by 213x! 50,000
Slide 15: Even in India, Sunrise Sectors have grown disproportionately
Even in India, Sunrise Sectors have grown disproportionately Rise in Weight of Rise in Weight of Information Weight of New Age Telecommunications in Technology in NIFTY 50 Index Companies in NIFTY 500 NIFTY 50 Index between between FY95 and FY24 Index has increased FY00 and FY07 14% 13.2% 15% 2.0% 1
Slide 16: Innovation in India bridging Potential & Progress
Innovation in India bridging Potential & Progress Innovation remains key to India’s Growth Ambitions For disclaimer refer slide 44 16/45
Slide 17: Key Pillars supporting the Rise of Innovation in India
Key Pillars supporting the Rise of Innovation in India 01 02 03 Strong Entrepreneurial High Talent Availability and Improved Funding Culture improving India’s Lower Salary Gaps Environment Global Innovation Rankings 04 05 06 Strong Digital Public Supportive Government Increasing Adoption of Infrastr
Slide 18: India climbing up the Global Innovation Rankings
India climbing up the Global Innovation Rankings Despite India being well-placed against other countries in the Global Innovation Index, India ranks 3rd in Number of Unicorns globally its GDP per capita is lower than countries like Brazil and Indonesia → Signals that there 700 656 is significant head
Slide 19: Large Talent Pool, Lower Salary Gaps and Improving Innovation Ecosystem
Large Talent Pool, Lower Salary Gaps and Improving Innovation Ecosystem – India’s Case for Talent Retention Indian Workforce highly skilled India’s Case for Higher Retention of Talent 1 Geopolitical challenges creating uncertainty One of the top in terms of 2nd largest in terms of AI/ML** 3rd global
Slide 20: Improved Funding Environment indicating Confidence in Upcoming Innovation
Improved Funding Environment indicating Confidence in Upcoming Innovation India’s Venture Capital (VC) Investments and Seed Funding has improved with greater than US$3 million rounds seed funding accounting for 50.4% of the funding in 2024, compared to 9.4% in 2017 → Indication of a shift from tradit
Slide 21: Healthy Exit Environment – Increasing Investable Opportunities
Healthy Exit Environment – Increasing Investable Opportunities VC-Funded IPOs have been healthy with a ~2x rise in number and market cap of IPOs since 2021 Exit Environment of VC-Funded Companies Strength of VC-backed IPOs has see a notable rise has been healthy (market cap) 180 157 90 80 160 80 Num
Slide 22: Digital Public Infrastructure – Key for Startups Growth
Digital Public Infrastructure – Key for Startups Growth ~9x Increase in UPI Transaction Volume since the Pandemic Key Digital Infrastructure Initiatives 200 172.2 Aadhar Co-WIN In billion 150 1382 mn users in 1190 mn 2024 users in 100 2023 50 18.9 ONDC 0 700k sellers 150 mn 2017 2018 2019 2020 2021
Slide 23: Government Initiatives supporting Innovation Ecosystem
Government Initiatives supporting Innovation Ecosystem Major Initiatives by the Government for supporting Innovation 10,000 Atal Tinkering Labs (1.1 crore+ Students 72 Atal Incubation Centres actively engaged) (32,000+ Jobs created) ASPIRE (A Scheme for Promotion of Credit Guarantee Atal Innovation
Slide 24: Sectors – Key Trends in Innovation
Sectors Key Trends in Innovation For disclaimer refer slide 44 24/45
Slide 25: Autos – Rising Adoption of Electric Vehicles
Autos – Rising Adoption of Electric Vehicles Penetration of BEV and Hybrids in US expected to increase BEV Penetration in India to witness an Accelerating 35% Adoption Rate 20% 20% 30% 30% 18% 16% 25% 14% 20% 12% 20% 10% 15% Hybrids 8% 10% 7% (MHEV + 6% FHEV + 4% 5% PHEV)** 2% 0% 2% 0% 0% BEV* CY20
Slide 26: Autos – Innovations to address Current Challenges
Autos – Innovations to address Current Challenges Challenges with Current Automotive Model Under-utilized Polluting Time-consuming Dangerous <4% Utilization on a 20 billion hours spent 1.5 lakh traffic-related ~30% Air Pollution 24-hour day on operating a vehicle fatalities in India Innovation happen
Slide 27: Autos – Developing EV Battery Ecosystem in India
Autos – Developing EV Battery Ecosystem in India Cumulative Capacity Commercial Investment Company Customer Tie-ups Technology Support Tie-ups and Ramp-up Production (in ₹ billion@) Leading Indian Auto Tie-ups with Key Universities and 20 GWh** in 2 years 2026 130 Largely internal Manufacturer (Grou
Slide 28: Electronics Manufacturing Services – A Key Priority for Indian Government
Electronics Manufacturing Services – A Key Priority for Indian Government India’s Share in Global Electronics Manufacturing India EMS has potential to grow 10x in next 7-10 years 600 500 China 350 300 400 22.0% USA 210 200 107 64.2 150 2.2% Europe 14.74 30 46.7% 0 6.6% SEA -200 -49.46 -180 -150 Indi
Slide 29: Healthcare – Trailblazer in Innovation
Healthcare – Trailblazer in Innovation ~60 60 8%-10% 10%-12% Healthcare Innovation Pharma services Pharma companies having a 40 8%-10% 30%-35% portfolio of New Chemical market is projected to 9%-11% ~30 Healthtech grow 2x to ~US$60 billion 7%-10% Vaccine and biotech Entity under different stages 13%
Slide 30: Energy Transition and Storage – Changing Paradigm
Energy Transition and Storage – Changing Paradigm Solar PV Demand – Exponential Rise in Demand Sharp Increase expected in Global Lithium-ion Battery Capacity Europe South Korea 800 Solar PV Demand by Country (GW*) 711 2023: 203 2023: 34 700 662 2026E: 168 2026E: 68 599 Sweden Canada Germany 600 2023
Slide 31: IT and Digital Platforms – A Long Runway for Growth
IT and Digital Platforms – A Long Runway for Growth Use of SaaS@ expected to increase with time Digital Ad Spends – Dominating the Total Ad Spends 12 Market Size (in US$ billion) 300 89% As a % of Total Ad Spends 100% 86% 10 250 70% In US$ billion In US$ billion 80% 67% 65% 8 200 57% 60% 51% 52% 6 1
Slide 32: Defence – Indigenization Success largely led by Heightened R&D Focus
Defence – Indigenization Success largely led by Heightened R&D Focus R&D Successes core to Indigenization besides Transfer India’s R&D Spends have increased to >US$3 billion led by of Technology DRDO and Private Companies Early successes in indigenization led by R&D and transfer of R&D Expenditure:
Slide 33: About HDFC Innovation Fund
About HDFC Innovation Fund For disclaimer refer slide 44 33/45
Slide 34: Investment Strategy
Investment Strategy Focus on Quality Valuation Discipline and Core Portfolio Portfolio Construction Companies Strategic Approach Aims to invest at least 80% Bottom-up approach to Companies who are Valuation looking from a of its net assets in equity stock selection targeting to grow higher medium to
Slide 35: Eligible Universe for HDFC Innovation Fund
Eligible Universe for HDFC Innovation Fund Scores 4 and 5 → Highest scores Scores assigned (Pure Play of Innovation) to Each Company Eligible Universe Number of Universe from 1 to 5 based (Score 3 and Companies with a Score 3 → Minimum Cut-off for a Company 2,596 on a to be part of the “Eligible Uni
Slide 36: High Growth commands a Valuation Premium
High Growth commands a Valuation Premium Growth run rate for Innovative Companies significantly ahead of the Traditional Peers → Commanding a Valuation Premium Ratio of Market Cap to Net 3-year CAGR Growth in Company Sales (March 2025) Net Sales (%), as of March 2025 One of the Leading Insurance Comp
Slide 37: Innovation Theme – Diversified across Sectors and Market Caps
Innovation Theme – Diversified across Sectors and Market Caps Investing in this Fund can provide an investor an exposure to industries across different market caps that are adopting innovative strategies Industries that can form part of the Universe* Auto and Auto Pharma & Energy (Power & Information
Slide 38: Key Takeaways
Key Takeaways Innovation → Process of introducing 3 Key Types of Innovation Multiple examples of innovation in new ideas, services, or products – or Product Indian context which has improve existing ones – to create transformed businesses in sectors value, solve problems, and maintain Process like F
Slide 39: Why invest in HDFC Innovation Fund?
Why invest in HDFC Innovation Fund? Exposure to companies that are adopting innovative strategies through the development of new products, processes or business models Opportunity to participate India’s next leg of economic growth led by companies who are innovators or early adopters of new technolo
Slide 40: Risks and Mitigants
Risks and Mitigants Risks Mitigants Slowdown in domestic economy and consumption → A large Drivers of Macroeconomic growth continue to be on a part of innovation ecosystem caters to the domestic economy strong footing which could get impacted in the event of an economic slowdown There has been a ste
Slide 41: Fund Facts
Fund Facts 1 Particulars HDFC Innovation Fund Type of Scheme An open-ended equity-oriented scheme following the innovation theme To generate long-term capital appreciation / income by investing in companies that are adopting innovative themes and Investment Objective strategies. There is no assuranc
Slide 42: Asset Allocation
Asset Allocation 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 (% of Net Assets) (% of Net Assets) Equity and Equity related instruments following 80 100 the innovation theme
Slide 43: Product Labelling and Riskometer
Product Labelling and Riskometer HDFC Innovation Fund (An open-ended equity-oriented Scheme Riskometer# scheme following the innovation theme) is suitable for investors who are seeking*: • Capital appreciation over long term • to invest in equity and equity related instruments of companies that are
Slide 44: Disclaimer
Disclaimer The views expressed herein are as of June 11, 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 co
Slide 45: Thank You
Thank You
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