Presenting

HDFC MF Monthly Income Plan

- Long Term Plan
(HDFC MF MIP – LTP)

(An Open-Ended Income Scheme)

(Monthly Income is not assured and is subject to availability
of distributable surplus)
(December 2012)

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 Table of Contents

Product Positioning and Rationale

Investment Strategy

Portfolio Composition

Product Features, Asset Allocation Pattern and Fund Manager Profile

Fund Suitability

Disclaimer

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 Positioning of Monthly Income Plans

Sectoral Funds

Equity Funds
RETURN

Index Funds

Balanced Funds

Monthly Income Plans

Gilt Funds

Income Funds

Liquid Funds

RISK

3
 Product Rationale

Targets returns higher than debt schemes with volatility lower than equity
schemes

The main driver for probable excess returns over nominal low risk fixed income
returns, in the long run is primarily the allocation to equities

Targeted at conservative investors as a large portion of the corpus is invested in

fixed income securities with the balance portion invested into equities and equity
related instruments

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Investment Strategy

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 Investment Strategy (Equities)

Maintains an effectively diversified portfolio

No cap / style bias

Focus is on:

Sound quality companies

Companies / businesses with superior growth prospects available at a reasonable price

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 Investment Strategy (Debt)

The fixed income portion of the net assets is predominantly invested in

corporate debentures to take advantage of the higher yields

Investments in bonds and debentures are predominantly in high quality

investment grade instruments

The maturity profile of debt instruments will be selected in accordance with the
outlook on current market conditions, interest rate outlook and the stability of
ratings

Twin objective of risk adjusted returns and capital preservation in all interest
rate scenarios

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Portfolio Composition
(As on November 30, 2012)

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 Portfolio Composition
(As on November 30, 2012)

Portfolio Classification by Asset Class (%)

Sovereign Securities 11.99

Equities 24.86

Commercial Papers (CP) / Certificate of Deposit (CD) 2.60

Credit Exposures 54.78

Cash, Cash Equivalents and Net Current Assets 5.77

Average Portfolio Maturity*: 5.25 years (other than equity investments)

Modified Duration (other than equity investments)*: 3.27 years
Yield to Maturity*: 9.14%
Net Assets (` in Cr): 5,382.54**

** Average AUM for the quarter ended September 30, 2012

* Computed on the invested amount

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 Product Features, Asset
Allocation Pattern and Fund
Manager Profile

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 Product Features
Type of Scheme Open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus

Inception Date (Date of allotment) December 26, 2003

Investment Objective The primary objective of scheme is to generate regular returns through investment primarily in Debt and Money Market
Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion
of the Scheme’s assets in equity and equity related instruments

Fund Manager $ Prashant Jain (Equities), Shobhit Mehrotra (Debt)

Options Growth, Monthly Dividend & Quarterly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment
facility

Minimum Application Amount Purchase:

(Under Each Option) Growth and Quarterly Dividend Option – ` 5,000 and any amount thereafter under each option
Monthly Dividend Option – ` 25,000 and any amount thereafter
Additional Purchase: ` 1,000 and any amount thereafter

Load Structure Entry Load: Not Applicable

Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based
on the investors’ assessment of various factors including the service rendered by the ARN Holder.
Exit Load:
In respect of each purchase / switch-in of units, an exit load of 1% is payable if units are redeemed /
switched-out within 1 year from the date of allotment.
No exit load is payable if units are redeemed / switched-out after 1 year from the date of allotment.

Benchmark Crisil MIP Blended Index

$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas since May 10, 2012.

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 Asset Allocation Pattern
Under normal circumstances, the asset allocation of the scheme’s portfolio will be as follows:

Types of Instruments Normal Allocation Deviation Risk Profile

(% of Net Assets)

Debt instruments 75 100 Low to Medium

(including securitised
debt) & Money Market
instruments (including
cash / CBLO/ Reverse
Repo)

Equities & Equity related 25 100 Medium to High

instruments

The investment in central and state government securities will not exceed 75% of the net assets of the plan.
It is the intention of the Scheme that the investments in securitised debt will not, normally exceed 75% of the net assets of the plan.
The scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 25% of net assets in ADR
/ GDR and Foreign Equity Securities and max. 50% of net assets in Foreign Debt Securities) subject to SEBI (Mutual Funds)
Regulations, 1996. The scheme may use derivatives mainly for the purpose of hedging and portfolio balancing based on the
opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.
The value of derivative contracts outstanding will be limited to 60% of the allocation of equity and debt instruments each under the
Plan
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 Fund Managers Profile $
Name and Designation Mr. Prashant Jain – Executive Director and Chief Mr. Shobhit Mehrotra – Senior Fund Manager – Fixed
Investment Officer Income and Head of Credit

Educational Qualifications CFA – CFA Institute B. Text

PGDM – IIM, Bangalore M.S. MBA (Clemson University, SC, USA)
B.Tech – IIT, Kanpur

Experience Collectively over 21 years of experience in fund Collectively over 19 years of work experience in Fixed
management and research in the Mutual Fund Industry Income Markets, credit rating etc.

Assignments Held June 20, 2003 till date Feb 16, 2004 till date
HDFC Asset Management Company Limited HDFC Asset Management Company Ltd.
July 1993 to June 19, 2003 Feb 1997 to Feb 2004
Zurich Asset Management Company (India) Templeton Asset Management (India) Pvt.
Private Limited Ltd.
Last Position Held – Chief Investment Officer Last Position Held – AVP and Portfolio
1991 to June 1993 Manager (Fixed Income)
SBI Mutual Fund July 1992 to January 1997
Last Position Held – Fund In Charge ICRA Ltd.
Last Position Held – Business / Investmnet
Analyst, Member Executive Rating Committee

$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas since May 10, 2012.

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Fund Suitability

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 Why HDFC MF MIP – Long Term
Plan?
Targets returns greater than debt schemes with lower volatility than equity
schemes

Aims to provide steady returns over medium term time frames

Aims to counterbalance the risks associated with each individual asset class

Cheaper and tax efficient alternative to maintain constant asset allocation

Helps investors maintain their asset allocation discipline at all times and not get
carried away by the cycle of fear and greed as a result of market swings

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HDFC MF MIP – Long Term Plan is
suitable for investors:
As an entry product for equities

With a conservative and risk averse nature tolerant towards controlled equity
exposure

Desiring a mixture of regular income and capital appreciation to overcome the

impact of inflation

Looking for a diversified portfolio across asset classes

Who are nearing retirement / retired

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 Disclaimer & Risk Factors

DISCLAIMER: This presentation has been prepared by HDFC Asset Management Company Limited (“HDFC AMC”) on the basis of internal data,
publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only. The
document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives,
financial situation and the particular needs of any specific person who may receive this document. The information/ data herein alone are not
sufficient and should not be used for the development or implementation of an investment strategy. The same should not be construed as
investment advice to any party. Neither HDFC AMC and HDFC Mutual Fund (the Fund) nor any person connected with them, accepts any liability
arising from the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek
appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED
DOCUMENTS CAREFULLY.

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Thank You

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