Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (October 2022)
28 slides from Hdfc Asset Management's investor presentation, Oct 21, 2022
Slide 1: Give your portfolio the Silver Edge
rusted Give your portfolio the Silver Edge NFO Period: 7 - 21st October, 2022 th Refer disclaimers on slide 27 01
Slide 2: Quick Facts about Silver
Quick Facts about Silver As a precious metal used in jewellery, silverware As an industrial commodity, it has large industrial use – from electrical switches to solar to chemical producing catalysts. (Refer slide 5) Considered as an auspicious metal in most parts of the country – bought especially a
Slide 3: Why consider investing in Silver?
Why consider investing in Silver? As an Industrial Commodity As a Precious Metal Play on industrial recovery – with heavy Hedge against usage in portable devices, industrial currency depreciation + equipment Improving demand outlook on account of Diversification higher adoption in new age and green t
Slide 4: As an Industrial Commodity
As an Industrial Commodity 04
Slide 5: Key properties of silver makes it a unique metal
Key properties of silver makes it a unique metal Easy to give shape (malleable and ductile) + has a brilliant shine – making it great for jewellery and silverware One of the best conductors of electricity, making it useful in electronic components (wires, switches and printed circuit boards), especi
Slide 6: Silver – A Key Component in Solar Energy Generation
Silver – A Key Component in Solar Energy Generation Increasing Solar Power Demand = Increasing Silver Demand 5,000 4,548 4,500 Demand for Silver for Solar Energy Generation (in tons) 4,000 3,500 3,267 3,000 2,809 Did you know? 2,500 Each solar cell uses approximately 2,000 100mg of silver 1,500 1,00
Slide 7: Silver being actively adopted in EVs
Silver being actively adopted in EVs* Increasing share of EVs in the automobile market is expected to increase demand of Silver as EVs use almost twice the silver used in the traditional Internal Combustion Engine (ICE) car. Charging stations also expected to increase the demand for silver Demand of
Slide 8: Focus on Green Tech expected to boost Silver Demand
Focus on Green Tech expected to boost Silver Demand Silver demand outlook (2030 Est vs 2020, million ounces) 200 2020 2030 +85% 150 100 +7% 50 Mobility, energy production & +1,362% +1,481% +207% telecom Focus areas 0 expected to boost silver ICE BEV PHEV Solar 5G demand Note: ICE - Internal Combusti
Slide 9: As a Precious Metal
|HDFC MF | INDEX SOLUTIONS Asa Precious Metal
Slide 10: Hedge against Currency depreciation Risk
Hedge against Currency depreciation Risk Rupee depreciation against the dollar Being a globally priced 90 metal, it acts as a hedge against currency 80 depreciation USD / INR rate 70 60 50 40 30 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Slide 11: Silver is a Voluminous Metal
Investing in Silver Silver is a Voluminous Metal Investing INR 10 lakh involves buying ~15kg of silver Density of silver is 10g/cm3; roughly half of gold Storing silver physically in a safe manner could be difficult for an individual 11
Slide 12: Other Notable Attributes of Silver
Other Notable Attributes of Silver 12
Slide 13: Key demand trends
Key demand trends Silver Demand Breakup: 2021 6% Silver demand is roughly split Industrial applications 50% between industrial applications and jewellery + Jewellery 25% investment demand Average 2011-20 49% Silverware ETFs have had a meaningful 4% Physical investment - share in total demand for sil
Slide 14: Silver Demand Growth expected to exceed Supply Growth
Silver Demand Growth expected to exceed Supply Growth Silver (in Tons) 2012-2020 2021 2022-25 (Expected, Forecast vs (average) 4 year Average) present Mine production 26,442 25,587 25,787 Total Supply 31,647 31,017 31,369 1% Industrial applications 14,589 15,807 17,382 10% Of which: Automotive 1,988
Slide 15: Silver Mining is well spread geographically
Silver Mining is well spread geographically Top 14 Countries (in Million Ounces) 2020 2021 Increase (%) Mexico 180.2 196.7 9% China 109.5 112.9 3% Peru 101.6 107.9 6% Australia 43 42.9 0% Poland 39.4 42 7% Bolivia 29.9 41.5 39% Chile 47.4 41.2 -13% Russia 42.5 39 -8% United States 31.7 32.5 3% Argen
Slide 16: Silver tends to outperform during High Macroeconomic Uncertainty
Silver tends to outperform during periods of High Macroeconomic Uncertainty One year performance of Silver vs other asset classes 200% 1 year performance of asset classes (%) 150% 100% 50% 0% -50% -100% Silver Rate (INR/gram) NIFTY 50 (TRI) Debt Gold Source: Bloomberg, Data as on September 30, 2022.
Slide 17: Performance Journey over the last 25+ years
Performance Journey over the last 25+ years Silver Price Movement CAGR* Returns (%)^ 80 Period Silver Silver 70 (INR/gm) (USD/kg) Silver price in INR / gram 60 50 20 Years 10% 7% 40 15 Years 7% 2% 30 10 Years -2% -6% 20 5 Years 7% 2% 10 0 3 Years 8% 3% Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-0
Slide 18: Risk-Return Matrix
Risk-Return Matrix Average Rolling Returns Standard Deviation Rolling Period Count Silver NIFTY 50 Debt Gold Silver NIFTY 50 Debt Gold 1 year 5,619 11% 15% 7% 12% 11% 9% 3% 8% 3 year 5,116 11% 15% 8% 13% 15% 13% 5% 9% 5 year 4,608 13% 16% 8% 13% 29% 27% 8% 15% Although Silver has tended to be more v
Slide 19: Presenting HDFC Silver ETF Fund of Fund
Presenting HDFC Silver ETF Fund of Fund An open ended Fund of Fund scheme investing in HDFC Silver ETF Give your portfolio the Silver Edge 19
Slide 20: Benefits of investing via HDFC Silver ETF Fund of Fund
Benefits of investing via HDFC Silver ETF Fund of Fund Available for Smart investment Ease of investing Cost effective investment for all options available Investing in Silver Investing in Silver via No requirement of Systematic through HDFC Silver HDFC Silver ETF FoF is demat account to transaction
Slide 21: Multiple reasons for investing in HDFC Index Solutions
Multiple reasons for investing in HDFC Index Solutions Processes Values Client Focus and Experience comes with Investor first approach a highly disciplined and robust Investment and of HDFC Mutual Fund Risk Management policies and processes Experience Outcome 20 years of continuous Tighter benchmark
Slide 22: About HDFC Silver ETF Fund of Fund
About HDFC Silver ETF Fund of Fund Particulars HDFC Silver ETF Fund of Fund To seek capital appreciation by investing in units of Investment objective HDFC Silver ETF (HSETF) Units of HDFC Silver ETF (more than 95%) and upto 5% in Debt and Investment Universe Money Market Instruments The Scheme shal
Slide 23: Fund Facts
Fund Facts Particulars HDFC Silver ETF Fund of Fund Type of scheme An Open-ended Fund of Fund Scheme investing in HDFC Silver ETF Investment objective To seek capital appreciation by investing in units of HDFC Silver ETF. There is no assurance that the investment objective of the Scheme will be real
Slide 24: Why invest in HDFC Silver ETF Fund of Fund?
Why invest in HDFC Silver ETF Fund of Fund? Hedge against currency risk An opportunity to leverage on the greater adoption of Silver for new age technologies – solar power, electric vehicles, and others Digital way to invest in silver, eliminating the need to store Silver physically. No need for a t
Slide 25: Asset Allocation
Asset Allocation Under normal circumstances, the asset allocation of the scheme’s portfolio will be as follows: Types of Instruments Minimum Allocation Maximum Allocation Risk Profile (% of Total Assets) (% of Total Assets) Units of HDFC Silver ETF 95 100 High to Very High Debt Securities & Money Mar
Slide 26: Scheme riskometer
Scheme riskometer Name of Scheme This product is suitable for investors Riskometer# who are seeking*: HDFC SILVER ETF Capital appreciation over long term. FUND OF FUND Investment in Units of HDFC Silver ETF (An open ended Fund of (HSETF). HSETF invests in Silver and Fund scheme investing Silver rela
Slide 27: Disclaimer
Disclaimer The views expressed herein are as of October 04, 2022 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 informatio
Slide 28: Thank You
Thank You
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