October 2019 1 What are Mid-caps Stock Universe Market Cap Range # - PowerPoint PPT Presentation

Riskometer This product is suitable for investors who are seeking* • to generate long-term capital appreciation / income • investment predominantly in Mid-Cap companies *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note : The scheme has undergone change in fundamental attribute w.e.f May 23, 2018. Please refer to scheme Information document available on www.hdfcfund.com / ISCs for further details. October 2019 1

What are Mid-caps Stock Universe – Market Cap Range # >Rs. 28,920 Cr Large Caps – 100 Companies Rs.27,454 to Rs. 8,858 Cr Mid Caps 150 Companies Rs 8,858 crores Small Caps* < Rs. 8,858Cr 1,204 Companies Source: As compiled by AMFI – As on 30 th June 2019.#Classification as per SEBI circular (SEBI / HO/ IMD/ DF3/ CIR/ P/ 2017/ 114) dated October 6, 2017, the universe of “Mid Cap” shall consist of 101 st to 250 th company in terms of full market capitalization. *Stock cut off – Market Cap above Rs 150 Cr . Historical performance indications and financial market scenarios are not reliable indicator of current or future performance 2

Nifty 50 TRI Vs Nifty Midcap 100 TRI Sharpe Ratio # Annualized Returns & Volatility (1 year, 3 year, 5 year & 10 Years ( Jan 01, 03 – Sep 30, 19) NIFTY Midcap TRI NIFTY 50 TRI 1 Year 2.77 Returns 25% 20% Volatility 38% 26% 1.94 NIFTY Midcap TRI NIFTY 50 TRI 3 Years 1.14 Returns 19% 16% 1.01 0.83 0.78 Volatility 16% 13% 0.53 0.51 NIFTY Midcap TRI NIFTY 50 TRI 5 Year 1 Year 3 Years 5 Years 10 Years Returns 17% 14% NIFTY Midcap 100 TRI NIFTY 50 TRI Volatility 10% 8% NIFTY Midcap TRI NIFTY 50 TRI 10 Year Higher long term risk adjusted returns Returns 16% 14% Volatility 4% 4% Source : IISL Returns based on Average Returns calculated on daily rolling for respective Period . Volatility based on standard deviation calculated on daily rolling for respective Period. Assumed 6.0% Risk Free rate for the above simulation #The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Generally, the greater the value of the Sharpe ratio , the more attractive the risk-adjusted return. Data since inception date of NIFTY Midcap 100 TRI i. e January 01, 2003. 3

Relative Index Performance 5,000 NIFTY Midcap 100 4,500 Period TRI NIFTY 50 TRI Last 1 Year -5.6% 6.3% 4,000 Last 3 Years 2.4% 11.5% 3,500 Last 5 Years 8.2% 8.9% Last 10 Years 10.4% 9.8% 3,000 Since June 25, 2007* 10.0% 9.7% 2,500 2,000 1,500 1,000 500 0 Jun-07 Mar-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Nov-12 Aug-13 May-14 Feb-15 Nov-15 Sep-16 Jun-17 Mar-18 Dec-18 Sep-19 Nifty Midcap 100 TRI Nifty 50 TRI As a result of recent corrections in Mid-cap segment, Mid-caps returns have converged with large cap returns Source: IISL. Returns are of September 30, 2019. The NIFTY 50 TRI is indexed to a base unit of 1000 .Past Performance may or may not be sustained in the future. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. *Data since inception date of HDFC Midcap Opportunities Fund i. e June 25, 2007. Mid-caps are considered riskier than Large-caps. 4

Midcaps Ahead Convergence of Large cap and Midcap Indices and valuations Midcap index premium/(discount) to Nifty 40 % 30 20 10 0 (10) (20) (30) (40) Jun-07 Feb-08 Oct-08 Jun-09 Jan-10 Sep-10 May-11 Dec-11 Aug-12 Apr-13 Dec-13 Jul-14 Mar-15 Nov-15 Jul-16 Feb-17 Oct-17 Jun-18 Jan-19 Sep-19 • Midcaps have corrected in last 1.5 year • Absolute and relative valuations of midcaps have moderated Source: CLSA, Bloomberg, Midcap refers to NIFTY Midcap 100 . Largecap refers to NIFTY 50, data updated till Sept, 2019 since inception of HDFC Midcap Opportunities Fund – June 25, 2007. Based on 1 Yr forward PE Historical performance indications and financial market scenarios are not reliable indicator of current or future performance. 5

HDFC Mid-cap Opportunities Fund – Portfolio Strategy • Launched on June 25, 2007 as a mid-cap fund with the objective to generate Fund History returns by investing predominantly in mid cap companies. • Bottom up portfolio construction Investment Approach • Focus on well managed mid cap companies at acceptable valuations. • Invest predominantly in mid cap companies. • Maintains a diversified position Investment Strategy • Identifying companies with reasonable growth prospects. • Identify companies with sound financial strength and sustainable business models. The current investment strategy is subject to change depending on the market conditions. 6

HDFC Mid-cap Opportunities Fund – Portfolio Construct At least 65% in midcap companies and remaining in a mix of large & small companies $ . • Targets quality small and midcap companies with growth at reasonable valuations. • Well diversified portfolio across sectors at all times. Market Cap** ( In Rs. Crore) Weighted Average Market Cap** (in Rs Crore) HDFC Mid-cap Opportunities Fund NIFTY Midcap 100 HDFC Mid-cap Opportunities Fund NIFTY Midcap 100 70% 20,000.0 62% 17210 60% 15207 47% 50% 15,000.0 40% 28% 27% 30% 21% 10,000.0 20% 11% 10% 3% 0% 5,000.0 0% HDFC Mid-cap Opportunities NIFTY Midcap 100 Less than Rs. 10,000 - Rs. 20,000 - More Than Fund Rs. 10,000 Cr Rs. 20,000 Cr Rs. 30,000 Cr Rs. 30,000 Cr Portfolio as per 30 th Sep 2019. Full Market Cap data as on Sept 30, 2019 from Ace Equity. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. ** Weighted Average Market Cap as on Sept 30, 2019 (Source: Ace Equity). Unlisted Securities has not been considered. The current investment strategy is subject to change depending on the market conditions. Equity Exposure of Fund rebased to 100%. $ For complete asset allocation please refer page 18. 7

Portfolio re-aligning as per SEBI classification 90 77.1 80 68.9 67.8 70 65.5 65.4 65.2 64.7 64.1 63.5 59.9 60 50 40 30 20 10 0 Sep 17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Aug-19 Sep-19 LARGE CAP(%) MID CAP(%) SMALL CAP(%) Now, portfolio predominantly spread between Mid Caps & Small Caps The above Classification is as per SEBI circular (SEBI / HO/ IMD/ DF3/ CIR/ P/ 2017/ 114) dated October 6, 2017, the universe of “Large Cap” companies shall consist of first 100 companies, “Mid Cap” shall consist of 101 st to 250 th and “Small Cap” shall consist of companies below 250 th company in terms of full market capitalization. For portfolio till May 18, Compiled by AMFI - As on 31 st December 2017 for portfolio from June as complied by AMFI in respective half years ending June 18, Dec 18 and June 19. Unlisted securities has not been considered. Note: The portfolio while being realigned as per SEBI’s classification, continues to be within the existing SID norms. For further details on investment strategy/asset allocation refer Scheme Information Document/Key Information Memorandum 8

Well Diversified all along. AUM Movement Number of Stocks 25,000 22,025 78 76 19,532 76 20,000 17,917 73 73 In Rs. Crores 74 71 72 15,000 13,022 70 10,532 68 10,000 65 65 7,453 66 64 5,000 62 60 - 58 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 80 70 60 34 43 50 40 Average Portfolio 30 Turnover ratio : 24 20 29 17 4 10 18 0 Source: MFI, As on 30 th September 2019 • 9

More than 90% allocation to equities at all times 100% 80% 60% 40% 20% 0% Sep-09 Sep-10 Oct-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Others (%)* 9 5 6 5 3 5 5 4 6 6 9 Equity (%) 91 95 94 95 97 95 95 96 94 94 91 Source: MFI * Others includes exposure in debt instruments and cash & cash equivalents (including net current assets) For complete portfolio as on Sept 30, 2019 please refer www.hdfcfund.com 10