Creative What are Overnight Funds? Overnight Funds are open ended - PowerPoint PPT Presentation

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What are Overnight Funds? • Overnight Funds are open ended debt schemes investing in debt and money market instruments with overnight maturity. • Overnight Funds predominantly invests in - - Tri-party Repos (TREPS) - Overnight reverse repos - Fixed income securities/instruments with overnight maturity • Some of the key features of Overnight Funds are: - Lower credit risk compared to other mutual fund categories - High liquidity - No exit load/lock-in period Refer the last slide for disclaimers. 2

Positioning of Overnight Funds Long Duration Medium Funds Duration RETURN Short Funds Duration Low Funds Duration Ultra Funds Short Liquid Term Funds Overnight Funds Funds RISK (Maturity)  Lowest risk among Mutual Funds categories  Ideal for parking surplus money pending deployment or for meeting contingencies *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Refer the last slide for disclaimers. 3

Overnight Funds – NAV applicability* NAV applicability for overnight funds is different from that for other funds: Subscriptions: • For subscription applications received up to 1:30 pm^, along with availability of funds for utilisation by the scheme before 1:30 pm^ – the closing NAV of the immediately preceding day is applicable • For subscription application received after 1:30 pm^, along with availability of funds for utilisation by the scheme on the same day – the closing NAV of the day immediately preceding the next business day is applicable • Where are funds are not available for utilisation before 1:30pm^/on the same business day – the closing NAV of the day immediately preceding the day on which funds are available for utilisation is applicable Redemptions: • For applications received up to 3 pm, the closing NAV of the same business day is applicable • For applications received up to 3 pm, where next day is a non-business day, the closing NAV of the day immediately preceding the next business day is applicable • For applications received after 3 pm, the closing NAV of the next business day is applicable ^Amended w.e.f. October 20, 2019, vide SEBI Circular Number SEBI/HO/IMD/DF2/CIR/P/2019/101 dated September 20, 2019. *For complete details on cut off timings and NAV applicability, refer SID/KIM and addendum dated October 17, 2019. Refer last slide for disclaimers. 4

Overnight Funds offer high liquidity*  T+1 redemption – Under normal circumstances, HDFC Mutual fund endeavours to credit redemption proceeds within 1 business day from the acceptance of the redemption request  The only type of fund (besides Liquid Funds) to announce NAVs on all days including public holidays (but excluding Saturdays). This enables the execution of transactions at the NAV of the day preceding the next business day: – For example, if redemption applications are received on a Friday up to 3pm, the NAV on the following Sunday (the day immediately preceding Monday, which is the next business day) is applicable*. – HDFC Mutual fund endeavours to credit funds on Monday under normal circumstances  The only category of funds (besides Liquid Funds) where it is possible to purchase units at the preceding day’s NAV, and redeem them on the same day at that day’s NAV, with the mutual fund endeavouring the credit of redemption proceeds on the next business day (under normal circumstances) *For complete details on cut off timings, NAV applicability and payout requirements, refer SID/KIM and addendum dated October 17, 2019. Refer last slide for disclaimers. 5

Suitability • HDFC Overnight Fund is suitable for investors – Having a short investment horizon (1 day to 3 months) – Desiring a high degree of liquidity and no interest rate risk – Using it as a channel to transfer funds systematically to other schemes such as diversified equity funds – Parking surplus money pending deployment • HDFC Overnight Fund can also be used to maintain a corpus for contingency purposes *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Past performance may or may not be sustained in the future. Returns are not assured. Refer the last slide for disclaimers. 6

Fund Facts Category of Scheme Overnight Fund Type of scheme An open ended debt scheme investing in overnight securities Inception Date February 6, 2002 (Date of allotment) To generate returns by investing in debt and money market instruments with overnight maturity. There Investment Objective is no assurance that the investment objective of the scheme will be realized. Fund Manager $ Anil Bamboli (since July 25, 2012) Regular plan and Direct Plan. Under both the Plans: Growth & Dividend Option. The Dividend Option is Plan & Options a Daily Dividend Option (Reinvestment facility only) Purchase: Under growth option : Rs. 5,000 and any amount thereafter; Under Daily Dividend Option : Minimum Application Rs. 10,000 and any amount thereafter Amount. Additional Purchase: Under Growth Option : Rs. 1,000 and any amount thereafter; Under Daily (Under Each Plan/Option) Dividend Option : Rs. 5,000 and any amount thereafter Entry Load: Not Applicable Load Structure Exit Load: Nil CRISIL Overnight Index Benchmark Additional Benchmark CRISIL 1 Year T-Bill Index * $ Dedicated Fund Manager for Overseas Investments: Mr. Chirag Dagli For further details, please refer to the Scheme Information Document available at Investor Service Centres of HDFC Mutual Fund and on our website www.hdfcfund.com. Refer last slide for disclaimers 7

Scheme Performance (HDFC Overnight Fund) Value of Rs. 10,000 invested Scheme Benchmark Additional Additional Period Returns Returns Benchmark Scheme (Rs) Benchmark #(Rs) Benchmark (Rs) (%) (%)# Returns ##(%) ## Last 7 days 4.49 4.61 6.24 10,009 10,009 10,012 Last 15 days 4.59 4.76 4.58 10,019 10,020 10,019 Last 1 Month 4.59 4.78 3.52 10,040 10,042 10,031 Last 1 Year 5.55 5.76 7.56 10,555 10,576 10,756 Last 3 Years 5.85 5.96 6.75 11,862 11,898 12,168 Last 5 Years 6.25 6.38 7.15 13,543 13,626 14,126 Since Inception* 6.17 NA 6.11 29,237 NA 28,923 Past performance may or may not be sustained in the future. Returns less than 1 year period are simple annualized and greater than 1 year are compounded annualized (CAGR). Load is not taken into consideration for computation of above performance(s).The above returns are of regular plan – growth option. Performance of dividend option under the scheme for the investors would be net of distribution tax as applicable. Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged in the Regular Plan. *Inception date of the scheme 6 th February, 2002. The scheme has been managed by Anil Bamboli since July 25, 2012 . # CRISIL Overnight Index ## CRISIL 1 year T-Bill Index. Data as on December 31, 2019. N.A.: Not Available. 8 Refer last slide for disclaimers.

Performance Summary (Other schemes managed by the fund manager) Scheme Scheme managing since 3 years 5 years 1 year (%) CAGR (%) CAGR (%) Anil Bamboli manages 41 other schemes in existence for more than 1 year Performance of Top 3 schemes managed by Anil Bamboli HDFC FMP 1218D December 2016 Jan 12, 17 9.76 NA NA CRISIL Composite Bond Fund Index 10.72 NA NA HDFC FMP 1302D September 2016 Sept 28, 16 9.33 8.35 NA CRISIL Composite Bond Fund Index 10.72 7.08 NA HDFC FMP 1309D September 2016 Sept 20, 16 9.29 8.34 NA CRISIL Composite Bond Fund Index 10.72 7.08 NA Performance of Bottom 3 schemes managed by Anil Bamboli HDFC DAF - III - 1224D November 2016 Dec 7, 16 7.44 6.08 NA NIFTY 50 Hybrid Short Duration Debt 25:75 Index 10.34 9.54 NA HDFC DAF - III - 1267D October 2016 Oct 25, 16 7.46 6.07 NA NIFTY 50 Hybrid Short Duration Debt 40:60 Index 11.02 10.81 NA HDFC FMP 1146D April 2018 May 10, 18 5.44 NA NA CRISIL Composite Bond Fund Index 10.72 NA NA Past performance may or may not be sustained in the future. The above returns are of Regular Plan – Growth Option. Load is not taken into consideration for computation of performance. On account of difference in the type of the Scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. Performance of close-ended schemes is not strictly comparable with that of open-ended schemes since the investment strategy for close-ended schemes is primarily buy-and-hold whereas open-ended schemes are actively managed. Top 3 and bottom 3 schemes managed by the Fund Manager have been derived on the basis of returns since inception vis-à-vis the benchmark. In case the benchmark is not available on the Scheme’s inception date, the returns for the concerned scheme is considered from the date the benchmark is available. Returns as on 31 st December, 2019. Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses/ commission charged in the Regular Plan. NA – Not 9 Available. Refer last slide for disclaimers.