Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (January 2023)
42 slides from Hdfc Asset Management's investor presentation, Jan 18, 2023
Slide 1: Retirement Savings Fund: Invest Today to Retire in Style
RETIREMENT SAVINGS FUND A Notified Tax Savings Cum Pension Scheme (An Open-ended Retirement Solution Oriented Scheme Having A Lock-in Of 5 Years Or Till Retirement Age [Whichever Is Earlier]) INVEST TODAY TO RETIRE IN STYLE Presenting HDFC Retirement Savings Fund $ Investing in the Scheme shall be e
Slide 2: Table of Contents
Table of Contents 1. Need for Retirement Planning................................................................................................................................ 03 - Increasing Life Expectancy - Inflation – Hidden Enemy of Your Wealth! 2. Power of Compounding........................
Slide 3: Did You Know?
Did You Know? You are likely to live longer, healthier as compared to your previous generation 75 Life Expectancy at Birth (in years) 70 71 65 Life expectancy has increased 60 significantly due to better living conditions and medicines. Consequently, retirement life has gotten longer, thereby creati
Slide 4: Times Are Changing
Times Are Changing A Generation Ago Now Medical Technology Limited Improved by Leaps and Bounds But, Medical Costs … Were Expensive Have Become More Expensive Plans Post Retirement Pilgrimage, Settle Down Quietly Travel the World, Pursue Hobbies Higher Job Security, Join an Organization More Frequen
Slide 5: Inflation – Hidden Enemy of Your Wealth!
Inflation – Hidden Enemy of Your Wealth! Average Inflation Over the Decades* Inflation sinks your purchasing power Today’s money will not buy you the same things tomorrow Inflation Over The Decades Over the last 5 decades CPI Inflation in India has averaged at 20.0 7.71% per year.* 18.0 16.0 A few s
Slide 6: Protect Against Inflation
Protect Against Inflation Retirement planning should be done keeping the ‘Real Rate of Return’ in mind Key Takeaways Real return = Return from investment – Inflation rate For instance, if my return from investment is 8% and my inflation Plan your retirement with is 7%, then my real rate of return is
Slide 7: If I Were to Retire Today – How Much Corpus Do I Need?
If I Were to Retire Today – How Much Corpus Do I Need? While the power of compounding can work wonders for wealth creation, inflation can erode your corpus over the years. How Much Corpus Do I Need? Illustration if I was to Retire Today 7 6 Current monthly expenses assumed – Rs.40,000 5 Returns assu
Slide 8: Need for Retirement Planning
Need for Retirement Planning Monthly expenses of Rs.50,000/- Longer life-spans mean longer retirement today will grow to Rs.1,60,000/- Joint families giving way to nuclear families after 20 years at 6%* inflation rate. Lack of social security benefits in India Are you investing enough Maintain the s
Slide 9: Power of Compounding
Power of Compounding 01 02 03 The illustration below highlights The longer the investment Also, higher the rate of this “Power of Compounding”. horizon, the greater the returns, the more you The table below shows how a compounding and hence can accumulate. Rs. 1 lakh investment grows at you have tim
Slide 10: Equities Help Create Wealth Over Long-Term
Equities Help Create Wealth Over Long-Term Key Takeaways CAGR Return (FY1980 to FY2023YTD)* Equities have compounded Equity (S&P BSE SENSEX) 15.49% faster than other major financial asset classes over 8.75% the last 25 years. Gold Bank FD 8.10% Do Not Shy Away From Avg Inflation# 7.61% Equities! 0%
Slide 11: Starting Early Makes an impact!
Starting Early Makes an impact! The below illustration is to showcase how you need to invest larger sums as you delay your retirement saving and how much it costs you in the long run. The % change is reflected over the previous start age. The calculations are done assuming a rate of return of 12% p.
Slide 12: Targeting Retirement Savings of Rs.1 Crore
Targeting Retirement Savings of Rs.1 Crore What to do? How to Do? How Much do I need to Invest every month? The amount you need to invest is a result of the rate of return and time. Illustration: Monthly Investment Amount to Reach a target corpus of Rs.1 Crore at age of 60 Retirement Planning Rate o
Slide 13: The Saving Habit
The Saving Habit A Generation Ago Now Working Years (Age) 20 to 60 25 to 60 Decreasing Retirement Years(Age) 60 to 70/75 60 to 75/80 Increasing Working years are decreasing while retirement The Thumb Rule: years are increasing In your 20s – Save at least 20% of your income Plan for at least 30 years
Slide 14: Invest With a Goal Towards Retirement
Invest With a Goal Towards Retirement Goal Based Investing Investing without a Goal Targets a specific amount of corpus for your retirement Savings are kept in a “common savings pool” through “product buying” Money is earmarked only for retirement. For instance, investors do not touch PF corpus for
Slide 15: Avenues for Investment For Retirement
Avenues for Investment For Retirement Refer disclaimer on page 41 15
Slide 16: Comparison: NPS, PPF and HDFC Retirement Savings Fund
National Pension HDFC Retirement Criteria Public Provident Fund Scheme (Tier I) Savings Fund Account Holder Individuals Individuals Individuals Age Eligibility 18-70 years Above the age of 18 Above the age of 18 Authorized Points of Presence At banks or the Post Office, Any Investor Service Center of
Slide 17: Comparison: NPS, PPF and HDFC Retirement Savings Fund
National Pension Public Provident HDFC Retirement Criteria Scheme (Tier I) Fund Savings Fund Storage and safety risk Low Low Low After 15 financial years, excluding the financial year of account opening; Maturity Tenure Attainment of age 60 tenure can then be further extended in No limits blocks of 5
Slide 18: Comparison: NPS, PPF and HDFC Retirement Savings Fund
National Pension Public Provident HDFC Retirement Criteria Scheme (Tier I) Fund Savings Fund Liquidity Very low Low High, post completion of lock-in period Scheme E - 10.94%~ Equity Plan – 12.58%* 5 year CAGR^ Scheme C - 7.80%~ 7.77% Hybrid Equity Plan – 10.33%* Scheme G - 7.83%~ Hybrid Debt Plan –
Slide 19: To Conclude…
To Conclude… Retirement Planning is a necessity as: Approaching retirement without planning is like appearing for an Your Parents Are Not Your Emergency Fund. exam without preparation and Your Children Are Not Your Retirement Fund. hoping to score good marks! As mentioned by Alan Lakein – Failing to
Slide 20: Presenting HDFC Retirement Savings Fund
Long term investment vehicle targeting retirement corpus for YOU! Choice of 3 plans – Depending on age and risk profiles Presenting Equity Plan HDFC Retirement Hybrid Equity Plan Savings Fund Hybrid Debt Plan Investments in the scheme qualify for benefits U/s 80 C of the Income tax Act, 1961. Expert
Slide 21: HDFC Retirement Savings Fund: Asset Allocation
HDFC Retirement Savings Fund Under normal circumstances the asset allocation will be as follows: Hybrid Equity Hybrid Debt Type of Instruments Equity Plan Plan Plan Risk Profile Risk Profile Risk Profile % of Total Assets: Min Max Min Max Min Max Equity & Equity related instruments 80 100 High 65 80
Slide 22: Tax Benefits of HDFC Retirement Savings Fund
Tax Benefits of HDFC Retirement Savings Fund HDFC Retirement Savings Fund A Notified Pension Fund Example illustrating Tax Saving: as specified by the Central Government Assume Gross Total Rs. 12,00,000 03 Income for the year is 02 Provisions of Section 80 C Investment in HDFC Retirement Savings Rs
Slide 23: Asset Allocation is Key to Financial Success
Asset Allocation is Key to Financial Success Each asset class has Asset allocation decision a different Return-Risk- is the most important Liquidity profile factor for long-term wealth building Diversification is needed to There is no “one size achieve optimal balance fits all” formula for between r
Slide 24: Risk Profiling and Asset Allocation
Risk Profiling and Asset Allocation Your Risk Appetite is a Function of Factor Risk Appetite Age The younger you are higher is your risk taking capability Income stream A regular and predictable income means a higher risk appetite Capital Base Higher the capital base, higher will be risk taking capab
Slide 25: Bye-bye Tension! Welcome Pension!
Bye-bye Tension! Welcome Pension! Phase 1: Earn and Accumulate Phase 2: Distribute Accumulate till 60 through: Withdraw post 60 through SWAP Lump sum Systematic Withdrawal Advantage Plan (SWAP) SIP Identify a reasonable standard of living Do not touch the retirement corpus and the monthly costs asso
Slide 26: Investment Patterns For Different Age Groups
Investment Patterns For Different Age Groups Refer disclaimer on page 41 26
Slide 27: Which Plan to Invest?
Which Plan to Invest? Factors Equity Plan Hybrid Equity Plan Hybrid Debt Plan Investors Investors between Investors above Age younger than 40 to 50 years 50 years of age or 40 years of age of age nearing retirement Investors who Investors with Highly conservative investors Risk understand moderate r
Slide 28: Ideal Investment Pattern for Youngsters
Ideal Investment Pattern for Youngsters Keep topping up your SIP amount with regular lump sum investments to build your corpus faster Start topping up your SIP amount Continue SIPs until with regular lump sum investments retirement to build your corpus faster Set up a SIP in a Equity Upon retirement
Slide 29: Ideal Investment Pattern for The Mid-Aged
Ideal Investment Pattern for The Mid-Aged Switch to a Hybrid Debt Plan** as you age and take on more responsibilities so as to reduce risk Ensure that this SIP amount is topped Continue your topped up SIPs up with regular lump sum investments till retirement. Add lump sums to build your corpus faste
Slide 30: Ideal Investment Pattern for Those Who are Nearing Retirement
Ideal Investment Pattern for Those Who are Nearing Retirement Keep topping up your SIP amount with regular lump sum investments to build your corpus faster Start topping up your SIP amount Continue SIPs until with regular lump sum investments retirement to build your corpus faster Set up a SIP in a
Slide 31: Fund Facts
Fund Facts Name of the Scheme HDFC Retirement Savings Fund A notified Tax Savings Cum Pension Scheme Category of Scheme Retirement Fund Type of Scheme An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier) Fund Manager$ Srinivasan
Slide 32: Fund Facts
Fund Facts Existing Investments by investors including SIP / STP registrations, etc. (until June 1, 2018): Units purchased cannot be assigned / transferred / pledged / redeemed / switched out until completion of 5 years from the date of allotment Lock In of Units under the Scheme. Period Fresh inves
Slide 33: Scheme Performance Summary - HDFC Retirement Savings Fund
Scheme Performance Summary - HDFC Retirement Savings Fund NAV as on December 30, 2022 Equity Plan `31.485 Hybrid Equity Plan `26.337 Hybrid Debt Plan `17.0930 Additional Value of ` 10,000 invested Scheme Benchmark Plan Period Benchmark Scheme Benchmark Additional Returns (%) Returns (%)# Returns (%)
Slide 34: Performance
Performance Performance of Other Funds Managed by Mr. Srinivasan Ramamurthy, Co-Fund Manager of HDFC Retirement Savings Fund (who manages total 9 schemes) Managing Scheme Returns (%) as on December 30, 2022 Scheme since Last 1 year (%) Last 3 years (%) Last 3 years (%) Performance of Top 3 schemes m
Slide 35: Performance
Performance Performance of Other Funds Managed by Mr. Shobhit Mehrotra, Co-Fund Manager of HDFC Retirement Savings Fund (who manages total 9 schemes) Managing Scheme Returns (%) as on December 30, 2022 Scheme since Last 1 year (%) Last 3 years (%) Last 3 years (%) Performance of Top 3 schemes manage
Slide 36: HDFC Retirement Savings Fund
HDFC Retirement Savings Fund $ A Notified Tax Savings Cum Pension Scheme (An Open-ended Retirement Solution Oriented Scheme having A Lock-in of 5 Years or till Retirement Age, whichever is earlier) $ Investing in the Scheme shall be eligible for tax benefits U/S 80C of the Income-Tax Act, 1961 Name of
Slide 37: Benchmark and Scheme Riskometers
Benchmark and Scheme Riskometers Name and Riskometer of Benchmark Name of Scheme Riskometer of the Scheme 90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold HDFC Multi-Asset Fund Investors understand that their principal will be at very high risk NIFTY Equity Savings Index H
Slide 38: Benchmark and Scheme Riskometers
Benchmark and Scheme Riskometers Name and Riskometer of Benchmark Name of Scheme Riskometer of the Scheme NIFTY 50 Hybrid Composite Debt 65:35 Index HDFC Dynamic PE Ratio Fund of Funds Investors understand that their principal will be at high risk NIFTY Low Duration Debt Index (Total Returns Index)
Slide 39: Benchmark and Scheme Riskometers
Benchmark and Scheme Riskometers Name and Riskometer of Benchmark Name of Scheme Riskometer of the Scheme NIFTY Medium to Long Duration Debt Index B-III HDFC Income Fund Investors understand that their principal will be at moderate risk NIFTY Credit Risk Bond Index C-III HDFC Credit Risk Debt Fund I
Slide 40: Benchmark and Scheme Riskometers
Benchmark and Scheme Riskometers Name and Riskometer of Benchmark Name of Scheme Riskometer of the Scheme NIFTY 50 Hybrid Composite Debt 50:50 Index HDFC Balanced Advantage Fund Investors understand that their principal will be at very high risk 90% Nifty 50 Hybrid Composite Debt 65:35 Index (Total
Slide 41: Disclaimer
Disclaimer The views expressed and data in the presentation are as on 18th January, 2023 and based on internal data, publicly available information and other sources believed to be reliable. The information given is for general purposes only. Past performance may or may not be sustained in future. T
Slide 42: Thank You
THANK YOU
HDFC Asset Management Company — Investor Presentation (January 2023) on 6ix