Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (April 2021)
15 slides from Hdfc Asset Management's investor presentation, April 2021
Slide 1: HDFC Arbitrage Fund: An Income Generating Equity Investment
HDFC Arbitrage Fund (An open ended scheme investing in arbitrage opportunities) An Income Generating Equity Investment This product is suitable for investors who are seeking* • Income over short term. • Income through arbitrage opportunities between cash and derivative market and arbitrage opportuni
Slide 2: Arbitrage – The Concept
Arbitrage – The Concept The arbitrage concept works off on mispricing of assets across different markets due to the underlying inefficiencies in market pricing. The illustration alongside gives a general idea of how the arbitrage fund takes advantage of such mis-pricing. All positions are completely
Slide 3: Capturing The Difference between Future & Spot
Capturing The Difference between Future & Spot Arbitrage trade is unwound at parity The above simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any r
Slide 4: Product Rationale & Positioning
Product Rationale & Positioning Generate income through arbitrage opportunities arising out of pricing mismatch in a security between different markets or as a result of special situations. Risk Long Term Debt Completely hedged positions, neutralizes market risk Medium Term Debt Funds (volatilit
Slide 5: Investment Strategy
Investment Strategy Derive returns from the implied cost of carry between the underlying and the derivatives market. This provides an opportunity to provide returns, possibly higher than the short-term interest rate without taking the market risk. Implied cost of carry and mis-pricing across t
Slide 6: Why Arbitrage funds?
Why Arbitrage funds? For Individual/HUF For Domestic Companies Particulars Arbitrage Fund Liquid Funds Particulars Arbitrage Fund Liquid Funds Investment `1,00,000 ` 1,00,000 Investment `1,00,000 ` 1,00,000 A comparison of Liquid Return over 6 months ` 3,000 ` 3,000 Return over 6 months ` 3,000 ` 3,
Slide 7: Equity Taxation – What works for Arbitrage?
Equity Taxation – What works for Arbitrage? For Resident Individuals/HUF$ Liquid Funds/ Taxes Applicable Arbitrage Funds Debt Funds 30% + Surcharge as Applicable+4% Cess 30% + Surcharge as Applicable+4% Cess Dividend Taxation& 42.744%/39%/35.88%/34.32% 42.744%/39%/35.88%/34.32% 15% + Surcharge as Ap
Slide 8: Equity Taxation – What works for Arbitrage?
Equity Taxation – What works for Arbitrage? For Domestic Companies$ Liquid Funds/ Taxes Applicable Arbitrage Funds Debt Funds 30% + Appl.SC $ + 4% Cess - 34.944%/33.384% 30% + Appl.SC $ + 4% Cess - 34.944%/33.384% ^25% + Appl.SC $ + 4% Cess - 29.120%/27.820% ^25% + Appl.SC $ + 4% Cess - 29.120%/27.8
Slide 9: Fund Suitability
Fund Suitability Completely hedged positions enables investors to earn the spread between the spot and future markets, indifferent to market movements Tax efficiency of an equity oriented scheme. For those who do not want any directional exposure Ideal investment horizon 3 – 6 months. In vie
Slide 10: Portfolio Facts & Composition
Portfolio Facts & Composition Cash, Cash Equvalent and Net Current Assets 15% Particulars Amount AUM 5,904.90 Cr. T Bills Outstanding Derivative 13% 4,171.12 Cr. Exposure Credit Exposure Hedged Equity 2% 70% Data as on March 31st 2021. For Complete portfolio details please refer to the fund website
Slide 11: Product Features
Product Features Type of Scheme An open ended scheme investing in arbitrage opportunities Inception Date October 23, 2007 (Date of allotment) To generate income through arbitrage opportunities and debt & money market instruments. There is no assurance that the investment Investment Objective objecti
Slide 12: Asset Allocation Pattern
Asset Allocation Pattern Under normal circumstances, the asset allocation of the scheme’s portfolio will be as follows: Minimum Allocation Maximum Allocation (% of Types of Instruments Risk Profile (% of Total Assets) Total Assets) Equity and Equity related 65 90 Medium to High instruments Derivativ
Slide 13: Asset Allocation Pattern (contd.)
Asset Allocation Pattern … (contd. From previous page) In defensive circumstances the asset allocation will be as per the below table: Minimum Allocation Maximum Allocation (% of Types of Instruments Risk Profile (% of Total Assets) Total Assets) Equity and Equity related 0 65 Medium to High instrum
Slide 14: Disclaimer & Risk Factors
Disclaimer & Risk Factors This presentation, dated 30th April 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 on
Slide 15: Thank You
Thank You
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