Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (May 2020)
31 slides from Hdfc Asset Management's investor presentation, May 30, 2020
Slide 1: Invest today to retire in style
Invest today to SFE = Avro retire in style. Presenting HDFC Retirement Savings Fund’. Sinvesting in the Scheme shall be eligible for tax benefits U/s 80C of the Income-tax Act, 1961. MUTUAL FUNDS Sahi Hai. yes BHAROSA APNO KA
Slide 2: HDFC Retirement Savings Fund
HDFC Retirement Savings Fund$ A notified tax savings pension scheme (An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age, whichever is earlier) Now, Retire in Style $Investing in the Scheme shall be eligible for tax benefits U/s 80C of the Income-tax
Slide 3: Table of Contents
Table of Contents 1 Introduction 2 Increasing life expectancy and need For Retirement Planning 3 Inflation – Hidden Enemy of Your Wealth! 4 Power Of Compounding 5 Starting Early Makes A Difference 6 The Saving Habit 7 Presenting HDFC Retirement Savings Fund 8 Bye-bye Tension! Welcome Pension! 9 Disc
Slide 4: Did You Know?
Did You Know? You are likely to live longer, healthier as compared to your previous generation Life expectancy at birth (in years) Life expectancy has increased significantly 69.42 due to better living conditions and medicines. 70 Consequently, retirement life has gotten 65 longer, thereby creating
Slide 5: Need for Retirement Planning
Need for Retirement Planning Longer life-spans mean longer retirement Monthly expenses of Rs.50,000/- 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 for your RETI
Slide 6: 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, More Frequent Job Changes, Career
Slide 7: Inflation – Hidden Enemy of Your Wealth!
Inflation – Hidden Enemy of Your Wealth! Average Inflation Over the Decades* Inflation sinks your purchasing power Inflation* over the decades Today’s money will not buy you the same things 10 tomorrow 9.07 9.49 9 Over the last 5 decades CPI Inflation in India has averaged at 7.74% per year.* 8 A fe
Slide 8: Protect Against Inflation
Protect Against Inflation • Retirement planning should be done keeping the ‘Real Rate of Return’ in mind • Real return = Return from investment – Inflation rate • For instance, if my return from investment is 8% and my inflation is 7%, then my real rate of return is 1%. Because, what I can buy with
Slide 9: 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 • Current monthly expenses assumed – Rs.40,000 6 • Returns as
Slide 10: Power of Compounding
Power of Compounding The longer the investment Also, higher the rate of The illustration below horizon, the greater the returns, the more you can highlights this “Power of compounding and hence you accumulate. Compounding”. The table have time working to your below shows how a advantage. Rs. 1 lakh
Slide 11: Equities Help Create Wealth Over Long-Term
Equities Help Create Wealth Over Long-Term CAGR Return (FY1980 to FY2020) Equity 14.60% Gold 8.80% Bank FD 8.20% Avg Inflation 7.40% 0% 2% 4% 6% 8% 10% 12% 14% 16% Source: Bloomberg, RBI Handbook of statistics on Indian Economy, World Gold Council #Average Inflation is shown for comparison with retu
Slide 12: Invest With a Goal Towards Retirement
Invest With a Goal Towards Retirement Goal Based Investing Investing without a Goal × Savings are kept in a “common savings pool” through Targets a specific amount of corpus for your retirement “product buying” Money is earmarked only for retirement. For instance, × Money gets withdrawn from the
Slide 13: 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 14: 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 ? The amount you need to invest is a result month? 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 Th
Slide 15: 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 years are increasing • Plan for at least 30 years of comfortable retired life. Start early. • Get into the h
Slide 16: To Conclude…
To Conclude… Retirement Planning is a necessity as: • Your Parents Are Not Your Emergency Fund. • Your Children Are Not Your Retirement Fund. So, Build Your Own Wealth and Retire in Style! Approaching retirement without planning is like appearing for an exam without preparation and hoping to score g
Slide 17: Presenting HDFC Retirement Savings Fund
Presenting HDFC Retirement Savings Fund • Long term investment vehicle targeting retirement corpus for YOU! • Choice of 3 plans – Depending on age and risk profiles ‒ Equity Plan ‒ Hybrid Equity Plan ‒ Hybrid Debt Plan • Investments in the scheme qualify for benefits U/s 80 C of the Income tax Act,
Slide 18: HDFC Retirement Savings Fund asset allocation
HDFC Retirement Savings Fund Under normal circumstances the asset allocation will be as follows: Type of Instruments Equity Plan Hybrid-Equity Risk Hybrid-Debt Risk Risk Profile Profile Profile % of Total Assets: Min Max Min Max Min Max Equity & Equity related 80 100 High 65 80 High 5 30 High instru
Slide 19: Asset Allocation is Key to Financial Success
Asset Allocation is Key to Financial Success • Each asset class has a different Return-Risk-Liquidity profile • Diversification is needed to achieve optimal balance between rewards and risks • Asset allocation decision is the most important factor for long-term wealth building • There is no “one siz
Slide 20: 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 capa
Slide 21: Which Plan to Invest?
Which Plan to Invest? Hybrid Equity Hybrid Debt Factors Equity Plan Plan Plan Investors above 50 Investors younger than Investors between 40 to Age years of age or nearing 40 years of age 50 years of age retirement Highly conservative Investors who Investors with moderate investors who are not Risk
Slide 22: 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 ‒ SIP Plan (SWAP) • Do not touch the retirement corpus till ‒ Identify a reasonable standard of living you act
Slide 23: Ideal Investment Pattern for Youngsters
Ideal Investment Pattern for Youngsters Upon retirement start a Set up a Systematic SWAP to earn regular income Investment Plan (SIP) * with a through withdrawal reasonable goal in mind Continue your topped up Ensure that this SIP amount is SIP’s till retirement. Add topped up regularly as your lump
Slide 24: Ideal Investment Pattern for Those Who are Nearing Retirement
Ideal Investment Pattern for Those Who are Nearing Retirement Upon retirement start a Set up a SIP * with a SWAP to earn regular income reasonable goal in mind through withdrawal Ensure that this SIP amount is Continue SIPs until topped up with regular lump retirement sum investments to build your c
Slide 25: Why HDFC Mutual Fund?
Why HDFC Mutual Fund? • Experienced fund management and research team with experience of managing assets across market cycles. • Over 17 years of fund management experience. • Product offerings across asset and risk categories enabling investors to invest in line with their investment objectives and
Slide 26: 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 $ Chirag Set
Slide 27: Fund Facts
Fund Facts Lock In Period 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 of Units under the Scheme. Fresh inves
Slide 28: Scheme Performance Summary
Scheme Performance Summary Value of Rs 10,000 invested Additional Scheme Benchmark Additional Plan Period Benchmark Scheme Benchmark Returns (%) Returns (%) Benchmark Returns (%) (Rs.) (Rs.) (Rs.) Last 1 Year -15.80 -15.93 -14.88 8,420 8,407 8,512 Equity Plan Last 3 years -1.15 0.42 3.33 9,658 10,12
Slide 29: Performance (Other schemes managed by fund manager)
Performance (Other schemes managed by fund manager) Scheme Managing scheme since 3 year 5 year 1 year CAGR (in %) CAGR (in %) Performance of 6 other schemes managed by Chirag Setalvad HDFC Small Cap Fund 2-Apr-2007 -32.88 -7.01 2.76 Nifty Small Cap 100 TRI -35.91 -17.21 -4.64 HDFC Long Term Advantag
Slide 30: Performance (Other schemes managed by fund manager)
Performance (Other schemes managed by fund manager) Scheme Managing scheme since 3 year 5 year 1 year CAGR (in %) CAGR (in %) Shobhit Mehrotra manages 19 other schemes that have completed 1 year Performance of Top 3 schemes managed by Shobhit Mehrotra HDFC Hybrid Debt Fund# 26-Dec-2003 -0.94 2.36 5.
Slide 31: Disclaimer
Disclaimer This presentation dated May 30, 2020, 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 only, which you must
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