Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (November 2024)
36 slides from Hdfc Asset Management's investor presentation, Nov 22, 2024
Slide 1: HDFC Nifty India Digital Index Fund
rusted HDFC Nifty India Digital Index Fund Power your portfolio with the Trillion* Dollar digital opportunity! NFO Period: November 22nd - December 6th, 2024 The companies displayed above form part of the constituents of the Nifty India Digital Index (TRI) as on October 31, 2024. *Refer slide 05 For
Slide 2: Increasing Tech Intensity: A Secular Trend
Increasing Tech Intensity A Secular Trend For disclaimers refer slide 35 02/36
Slide 3: Technology - Changing the way we live… (1/2)
Technology - Changing the way we live… (1/2) Before After Before After Banking Payments Bank Branches Digital Banking Cash, Cheque/DD UPI, online transfer, e-Rupi Retail Education Purchasing physically from stores E-Commerce Schools / colleges Online Classes Capital Markets Manufacturing Physical sh
Slide 4: Technology - Changing the way we live… (2/2)
Technology - Changing the way we live… (2/2) Before After Before After Government Healthcare People standing in queue for Government subsidies Direct Benefit Transfer Hospitals Robotic Surgeries Advertising Meetings Billboards Digital Ads In-person meetings Online web conferencing For disclaimers ref
Slide 5: Digital economy growth expected to outpace GDP growth
Digital economy growth expected to outpace GDP growth Growth over 2022-2030E India’s technology sector 4.5x GDP 2.1x Internet economy’s share of GDP 2010 $8B-10B $50B-60B 0.5% 2022 $155B-175B $320B-350B 4-5% 2030E $900B-1,000B $1,450B-1,550B 12-13% Internet economy Technology sector 1 Note: Absolue
Slide 6: India's Digital Sector: A multi-decade opportunity
India’s Digital Sector: A multi-decade opportunity Indian Digital Landscape: What does it offer? India’s new age companies leveraged India’s IT Services champions leveraged to domestic consumption to AI and global tech spending Local drivers Global drivers Beneficiaries Top of 100 companies by marke
Slide 7: Digitalization in India: Long Runway for Growth
Digitalization in India Long Runway for Growth For disclaimers refer slide 35 07/36
Slide 8: Increasing Internet and Smartphone penetration to create next generation of online commerce users
Increasing Internet and Smartphone penetration to create next generation of online commerce users A large section of people with access to internet India’s internet penetration has a long way to go are still untapped by online businesses Internet penetration (%) 80% 75% 660-690 70% 2020 63% 280-310
Slide 9: E-commerce boom to continue with long runway ahead
E-commerce boom to continue with long runway ahead Indian E-commerce Market (US$ billion) E-commerce is now >20% of total retail sales in US and China E-commerce penetration in total retail sales 30% 400 25% 25% 325 21% 20% 15% 200 10% 8% 163 145 123 102 5% 84 67 0% India US China 0 2021 2022 2023 2
Slide 10: Food and Quick Commerce delivery at an inflection point
Food and Quick Commerce delivery at an inflection point Food delivery business has been growing steadily Quick Commerce still has ample room for growth Food delivery business GMV (Rs bn) Share of total food & grocery market (%) 600 569 100.0 94.0 90.0 478 80.0 500 70.0 398 60.0 400 50.0 40.0 300 30.
Slide 11: InsurTech & digital lending to grow as India's digitized payments infrastructure expands
InsurTech & digital lending to grow as India’s digitized payments infrastructure expands Share of digital insurance premia to rise Digital lending has increased rapidly Digital premium as % of total industry premiums Lending by FinTechs Registered as NBFC-ICCs 12,000 10,995 6.0% 5.7% 10,492 10,000 5
Slide 12: Case Study: New-age company swings to positive operational cash flow
Case Study: New-age company swings to positive operational cash flow Leading listed player in Food Delivery and Quick Commerce segment Adjusted Revenue Net cash generated from / (used in) operating activities 800 15000 400 Rs. Cr. Rs. Cr. 10000 0 -400 5000 -800 0 -1200 FY21 FY22 FY23 FY24 FY21 FY22
Slide 13: Telecom: Rising ARPU post sector consolidation
Telecom: Rising ARPU post sector consolidation FY14 FY24 Number of Telecom Players in India 13 4 Industry ARPU (Rs. / user) 190 170 156 168 150 156 150 153 130 133 135 124 110 109 107 90 97 70 50 F14 F15 F16 F17 F18 F19 F20 F21 F22 F23 F24 Source: BofA Global Research Average Revenue Per User (ARPU)
Slide 14: IT Services: Primed to Benefit from Increase in Tech Spends
IT Services Primed to Benefit from Increase in Tech Spends For disclaimers refer slide 35 14/36
Slide 15: From humble beginnings, the IT sector is now a vital pillar of the economy
From humble beginnings, the IT sector is now a vital pillar of the economy EXPORTS EMPLOYMENT INNOVATION In FY2024, Indian IT sector IT sector has a total employee 650,000 employees are being exports totaled $199bn base of 5.43 million people trained in generative AI skills IT Industry revenue has g
Slide 16: Exports of India's global facing IT companies have consistently outgrown global spending
Exports of India’s global facing IT companies have consistently outgrown global spending Geographic Breakup of IT Revenues (%) - FY24 40% Indian IT exports (% YoY) 35% Global IT Services spending (% YoY) 30% 10% 25% 20% 15% 28% 10% 62% 5% Americas 0% Europe -5% FY24E FY04 FY06 FY08 FY10 FY12 FY14 FY
Slide 17: Indian IT has evolved stronger through Technology Cycles
Indian IT has evolved stronger through Technology Cycles AI, Data and Cloud Cloud / Digital, Automation Did you know? Growth Top 3 large Indian IT Services Drivers Remote Infrastructure management firms have USD 1 bn+ revenues Services, BPO# each from software products & platforms Offshoring, Applic
Slide 18: Indian IT services companies have strong fundamentals
Indian IT services companies have strong fundamentals IT Services companies are more efficient IT Services companies have strong balance sheets viz. than the broader Nifty 50 less debt than the broader Nifty 50 Return on Common Equity (%) Leverage - Total debt to total equity (%) IT Services compani
Slide 19: India has good quality of tech talent available in addition to a large talent pool
India has good quality of tech talent available in addition to a large talent pool Indian Workforce highly skilled One of the top in terms of Large AI/ML* Business Development Increased supply of Al skills penetration Assessment talent pool, globally Cloud professionals. Country-wise Tech Talent Dis
Slide 20: About the Nifty India Digital Index
About the Nifty India Digital Index For disclaimers refer slide 35 20/36
Slide 21: Nifty India Digital Index – Methodology
Nifty India Digital Index – Methodology 50% to Software, IT Enabled Services etc. ~(Export focused) Nifty India Digital Index = + 50% to E-Commerce, Fintech etc. ~(Domestic focused) Parameter Nifty India Digital Index Universe Nifty 500 Stock selection process 30 Largest stocks from eligible basic i
Slide 22: About the Nifty India Digital Index
About the Nifty India Digital Index Index aims to track the performance of portfolio of Top 10 constituents of Nifty India Digital Index stocks that broadly represent the India Digital theme Company Name Weightage (%) 30 stocks from eligible basic industries including HCL Technologies Ltd. 7.9% Soft
Slide 23: Constituents by basic industry
Constituents by basic industry Sub Sector / Basic Industry Sub Sector / Basic Industry Company Name Company Name Basic Industry weight (%) Basic Industry weight (%) HCL TECHNOLOGIES LTD. Financial Technology PB FINTECH LTD. (Fintech) 11.91 TATA CONSULTANCY SERVICES LTD. ONE 97 COMMUNICATIONS LTD. IN
Slide 24: Sector, basic industry and size segment distribution
Sector, basic industry and size segment distribution Sector Weights (%) Basic Industry Weights (%) Information Technology 51.27 Computers - Software & Consulting 46.84 Consumer Services 23.22 Telecom - Cellular & Fixed line services 13.60 Telecommunication 13.60 E-Retail/ E-Commerce 10.65 Financial
Slide 25: Performance since inception
Performance since inception CAGR* as on Oct 31, 2024 Indices rebased to 1000 20000 Return Periods Nifty 500 Nifty 50 Nifty India Digital TRI TRI TRI Nifty India Digital TRI (13.3% CAGR*) 15000 1 year 44.4% 36.3% 28.4% Nifty 500 TRI (15.2% CAGR*) 3 year 11.7% 15.7% 12.3% Nifty 50 TRI (14.8% CAGR*) 5
Slide 26: FY Performance
FY Performance FY Nifty India Digital TRI Nifty 500 TRI Nifty 50 TRI Heatmap Rank 1 Rank 2 Rank 3 Key FY06 66.3% 64.3% 67.4% FY07 15.9% 10.0% 14.3% Nifty India FY08 -10.0% 22.9% 25.1% Digital TRI FY09 -34.1% -39.1% -35.4% FY10 97.5% 90.0% 75.3% Number of Financial 19 Years* FY11 -2.6% 8.4% 12.4% FY1
Slide 27: Presenting HDFC Nifty India Digital Index Fund
Presenting HDFC Nifty India Digital Index Fund An open-ended scheme replicating/tracking the Nifty India Digital Index (TRI) For disclaimers refer slide 35 27/36
Slide 28: Why invest in HDFC Nifty India Digital Index Fund?
Why invest in HDFC Nifty India Digital Index Fund? Benefit from the Diversified Exposure to Lower Cost growth of exposure to the local and global companies driving digital theme beneficiaries of the Suitable vehicle for secular rise of long-term investment the tech through stocks due to lower expens
Slide 29: What are the key risks and mitigants?
What are the key risks and mitigants?� Key Risks Mitigants Competitive intensity and / or technological disruption faced Relatively strong moats such as long customer relationships, investments by the sector in (re)skilling talent should aid competitiveness and adaptability to technological evolutio
Slide 30: 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, 22 Index Funds & 3 FoFs including: HDFC AMC has been a trusted Market-cap based – Market-cap based Index Funds fund manager in Index Solutions 7 ETFs
Slide 31: Fund Facts
Fund Facts HDFC Nifty India Digital Index Fund Scheme Type An open ended scheme replicating/tracking Nifty India Digital Index (TRI) Investment To generate returns that are commensurate (before fees and expenses) with the performance of the Nifty India Digital Objective (TRI), subject to tracking er
Slide 32: Asset Allocation Table
Asset Allocation Table Indicative allocations (% of total assets) Instruments Minimum Maximum Securities covered by 95 100 Nifty India Digital Index (TRI) Debt Securities & Money Market Instruments, units of 0 5 Debt Schemes of Mutual Funds@ @ investments will be made Cash or cash equivalents i.e. G
Slide 33: Appendix: List of eligible Basic Industries for inclusion in Index
Appendix : List of eligible Basic Industries for inclusion in Nifty India Digital Index List of eligible Basic Industries Computers - Software & Consulting IT Enabled Services Computers Hardware & Equipments Other Telecom Services Digital Entertainment Software Products E-Learning Telecom - Cellular
Slide 34: 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 Nifty India Digital Index (TRI) over long term, subject to tracking error. • Investment in equity securities cov
Slide 35: Disclaimer
Disclaimer The views expressed herein are as of Nov 14, 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 co
Slide 36: Thank You
Thank You
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