HDFC Balanced Advantage Fund -Presentation
17.79% CAGR for 27 Wealth has grown over 86 times in 27 years** Years (Since inception Feb,1, 1994) ** HDFC Balanced Advantage Fund (An open-ended Balanced Advantage Fund) Balance is not something you find, it’s something you create – Jana Kingsford This product is suitable for investors who are seeking*: To generate long-term capital appreciation/income Investments in a mix of equity and debt instruments *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 future. For detailed performance please refer Slides 22-23 Effective close of business hours of June 1, 2018, HDFC Prudence Fund merged with HDFC Growth Fund (HDFC Balanced Advantage Fund after changes in fundamental attributes). As the portfolio characteristics and the broad investment strategy of HDFC Balanced Advantage Fund is similar to that of erstwhile HDFC Prudence Fund, the track record (i.e. since inception date, dividend history, etc.) / past performance of erstwhile HDFC Prudence Fund have been considered, in line with SEBI circular on Performance disclosure post consolidation/ merger of scheme dated April 12, 2018.). Refer disclaimers on slide 24 May 2021 1
HDFC Balanced Advantage Fund – Ideal for long term Investments HDFC Balanced Advantage Fund has delivered more than 10% CAGR over 10 year periods in 96% instances, since inception in 1994 CAGR (%) 1 Year 3 Years 5 Years 10 Years 15 Year more than 15 50% 57% 71% 77% 92% more than 10 59% 77% 92% 96% 100% more than 5 68% 86% 98% 100% 100% more than 0 77% 95% 100% 100% 100% Less than 0 23% 5% - - - It can be clearly seen, that as the holding period increases, return profile improves. This is consistent with the belief that equities are a long term asset class and that risk generally reduces as holding period increases. HDFC Balanced Advantage Fund maintains significant exposure to equities (At least 65% of Total Assets) and is therefore suited for long term investors with investment horizon of 5 years or more. Usain Bolt won 8 gold medals in 3 Olympics, and he only ran for less than 115 seconds on . But for those 2 minutes, he trained for 20 years. That’s Investment, Think long term, patience pays Source :MFI Explorer. As of 30th April 21. Above returns are calculated on daily rolling basis. Past Performance may not be sustained in future. HDFC Mutual Fund/AMC is not guaranteeing any returns. For detailed performance, refer slides 22 and 23. 2 Refer disclaimers on slide 24
HDFC Balanced Advantage Fund – A fund that has performed across market cycles, crises, market bubbles etc. ! COVID-19 led correction 10,000 Sensex down 35% within a month 9,000 HDFC Balanced Advantage Fund - Reg - Growth(Adjusted-NAV) NIFTY 50 Hybrid Composite Debt 65:35 Index* Value of Rs 100 invested in 1994 8,000 7,000 6,000 5,000 4,000 3,000 2,000 NIFTY 50 TRI Lehman crisis, GFC Sensex down 52%, Real Estate Index down 88%, Power, Capital Goods indices down 60-65%, Crude down 48% Tech Bubble, 9/11 Sensex down 46%, IT Index down 83% 1,000 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 HDFC Balanced Advantage Fund has navigated through market cycles, crises, market excesses etc. with its disciplined approach to investing, focus on long term & effective portfolio diversification. It has generated a CAGR return of 18% vs NIFTY 50 TRI return of 11% since inception of the scheme (i.e. February 1, 1994). HDFC Balanced Advantage Fund NAV is up 86 times since inception in Feb 94’ vs NIFTY 50 TRI which is up 16 times in the same period. (As of 30th April 2021) * Since Sep’01 (Inception date of NIFTY 50 Hybrid Composite 65:35 Index) , HDFC Balanced Advantage Fund NAV is up 36 times vs 13 times for benchmark (NIFTY 50 Hybrid Composite 65:35 Index) during the same period. Returns as on 30th Apr 21 of regular plan - growth option. Past Performance may or may not be sustained in the future. For complete performance details refer slides 22-23 3 Refer disclaimers on slide 24
Covid-19 correction played right! Covid-19 caused untold pain to individuals, families and economy. However, it also provided an opportunity to improve long term returns to discerning investors by staying invested / increasing equity exposure However only few made the best out of this opportunity as headlines made them fearful. Investment decisions were driven by emotions / short term thinking instead of rationality / long term thinking S&P BSE Sensex TRI (SENSEX TRI) has compounded at 15% CAGR vs average inflation of 6% over last 20 years. Rs 100 invested in 1999 has become Rs 1650 in nominal terms & Rs 560 in real terms (Source: BSE, RBI). To achieve this patience and tolerance for volatility through events like 9/11, GFC, Eurozone crises, Brexit, Covid-19 etc. was the key SENSEX has witnessed occasional deep corrections. Investments made around these times delivered higher CAGR returns. This is one way to improve long term returns (refer adjacent table) Event SENSEX TRI Level ** Tech Bubble, 9/11 3,253 Lehman crisis, 11,270 GFC COVID19 41,773 Since Inception 100 SENSEX TRI CAGR (as at Remarks Level (30th 30th April. 2021) April, 2021) 72,199 17.2% Sensex down 46% 72,199 16.6% Sensex down 52% 72,199 64.6% Sensex down 35% 72,199 16.9% ** SENSEX TRI Levels post corrections but 10% up from bottom HDFC Balanced Advantage Fund with its long term approach to investing, maintained higher exposure to equities in this difficult period. This led to brief period of underperformance but has paid off handsomely as things normalized. 4 Refer disclaimers on slide 24
Equity Market Outlook Markets bounce back has to be seen in the context of : Indian market capitalization despite the recent rally, is currently 90% of GDP (based on CY 2022 GDP), At its bottom in March 20, it had fallen close to 46% (based on CY 2021 GDP) Despite the sharp rise, NIFTY 50 returns over the past 10 years and 15 years are 11% CAGR, largely in line with nominal GDP growth. Corporate earnings in Q2FY21 & Q3FY21 have been better than expected and resulted in broad based earnings upgrades FY2021-22 Budget with its focus on growth & capex augurs well for new investment cycle and earnings growth NIFTY 50 is trading near 21x FY22E and 18x FY23E price to earnings ratio. NIFTY50 FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY23E EPS 384 439 449 480 453 525 712 813 2% 7% -6% 16% 35% 14% 20.8 18.2 % growth 14% P/E In our view, these are reasonable multiples, especially given the low interest rate environment and improving growth outlook Positive outlook over the long term driven by growth focused budget, low cost of capital, reasonable valuations and strong earnings outlook Source : Kotak Institutional Equities – data as on 11th May, 2021. Bloomberg, Market cap to GDP as on 30th April, 2021 . 5 Refer disclaimers on slide 24
Profit growth : Signs of revival in 2QFY21 & 3QFY21 results 31.2 40.0 20.0 0.0 -20.0 NIFTY50 FY19 FY20 FY21E FY22E FY23E EPS 480 453 525 712 813 20.8 18.2 P/E Sales growth YoY (%) -40.0 PAT Growth YoY (%) Source : Kotak Institutional Equities, 11th May, 2021. Dec 20 Sep 20 Jun 20 Mar 20 Dec 19 Jun 19 Sep 19 Mar 19 Dec 18 Jun 18 Sep 18 Mar 18 Dec 17 Sep 17 Jun 17 Mar 17 Dec 16 Jun 16 Sep 16 Mar 16 Dec 15 Jun 15 Sep 15 Mar 15 Dec 14 Sep 14 -60.0 Source: MOFSL, Universe 193 companies covered by MOFSL Corporate earnings in Q2FY21 & Q3FY21 have been better than expected and resulted in broad based earnings upgrades Q3FY21 turned out to be one of the best earning seasons in last 6 years (since Sep 14) so far with PAT growth of 31% despite de-growth in revenue Profit growth has been driven by : Banks Lower Provisioning IT Lower costs FMCG Steady growth Capital Goods Improving execution Healthcare Steady growth, operating leverage Metals Higher spreads Utilities Steady growth Telecom Higher ARPUs, operating leverage Cement Good pricing, lower costs HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s . In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Sectors referred above are illustrative and are not 6 recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these sectors. Refer disclaimers on slide 24 7 6
NIFTY50 Profit growth : Finally back on track ? PAT Growth CAGR % Sector Consumer Discretionary Consumer Staples Corporate Banks & Financials Energy Health Care Industrials Information Technology Materials Retail Banks & Financials Telecommunication Services Tobacco Utilities 2014-20 (13) 12 (2) (1) (2) 15 8 8 22 n.a. 9 6 2020-23E 50 17 53 17 25 15 13 35 13 n.a. 5 13 Source: Kotak Institutional Equities, E – Kotak Institutional Equities estimates Last few years NIFTY50 profit growth got impacted due to : Profit growth to be driven by : Higher provisioning on NPAs due to significant stress in steel, power & infra sectors by Corporate Banks With falling slippages and increasing resolution of NPAs provisioning costs are expected to fall significantly resulting in increase in profitability of Corporate Banks Provisioning for AGR (Adjusted Gross Revenue) dues by Telecom companies Extraordinary write-offs by one large auto company Healthcare companies to benefit from new launches & stability in pricing in the US Energy companies got impacted by inventory write-offs in FY20 Rise in commodity prices Healthcare companies got impacted by weak pricing cycle in the US Lower interest rates, Recovery in demand & Cost control post Covid-19 first wave No large extraordinary provisioning / write-offs expected HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s . In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these sectors. 7 Refer disclaimers on slide 24 7 7
Sector Valuations Sector Valuations P/E# Valuation multiple 10Y Average Valuations Premium / (discount) Auto Consumer Consumer Discretiona Oil and gas staples* ry Cement IT services Pharma Private Metals and Banks P/B mining Tobacco PSU Banks P/B Electric utilities 21.1 53.1 61.5 14.6 31.0 24.7 27.0 2.6 9.7 15.3 0.9 7.6 16.4 40.9 44.6 11.2 22.9 17.8 22.6 2.5 10.2 24.2 1.1 10.7 29% 30% 38% 30% 35% 39% 20% 2% -5% -37% -17% -29% Source: Kotak Insti Equities. Data as on 30th April. 2021 Stocks are stocks part of Kotak Inst Equities universe. Oil & Gas valuations are high due to one company. Excluding of these, the multiples are 7.1x for vs 10 year average multiple of 9x. *Consumer staples ex tabacco. There is significant divergence in valuations across sectors (refer table above). 16.0 14.0 Divergence in sector valuations as reflected in standard deviation has been rising and is now at a decadal high (refer adjacent chart) 12.0 11.2 10.0 8.2 8.0 The Fund positioning aims to take advantage of this market anomaly by 6.0 having overweight positions in the undervalued sectors and vice versa. 4.0 (refer slide 16 and 17) 13.9 Sector Valuation Divergence (annual standard deviation ) 8.9 10.4 12.2 12.3 9.4 6.8 5.6 2011 2013 2015 2017 2019 Universe excluding Financials. Source: Kotak Institutional Equities HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s . In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these sectors. 8 Refer disclaimers on slide 24
C for Covid-19, C for Cost of Capital ! Many are confused with the bounce back in the Equities, despite weak economic conditions. The answer to this partly lies in Covid-19 induced lower cost of capital. Lower cost of capital reduces the discounting rate & thus increases the present value of future cash flows, i.e., DCF (Discounted Cash Flow) The impact of lower Cost of Capital on DCF is higher than the impact of lower cash flow of one year (refer illustrative below table) Assumed Future Cash Flows FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Terminal Value @ Cost of 10xFY34 FY34 Capital Cash Flow S1 10.0 11.0 12.1 13.3 14.6 16.1 17.7 19.5 21.4 23.6 25.9 28.5 31.4 34.5 38.0 12.0% 380 126 87 213 S2 10.0 5.0 12.1 13.3 14.6 16.1 17.7 19.5 21.4 23.6 25.9 28.5 31.4 34.5 38.0 10.0% 380 143 110 253 19% S3 10.0 5.0 12.1 13.3 14.6 16.1 17.7 19.5 21.4 23.6 25.9 28.5 31.4 34.5 38.0 9.0% 380 153 124 276 30% PV of Future Cash Flows PV of % Terminal Fair Value Change (from S1) Value S1: Scenario 1 Assuming No Covid-19. 10% CAGR growth in Cash flow in FY21 & thereafter. Cost of Capital at 12%. S2 : Scenario 2 Assuming Covid-19. 50% degrowth in Cash flow in FY21 & no change in cash flows after FY21. Cost of Capital is lower at 10%. Fair value is higher by 19% in this scenario vs Scenario 1 S3 – Scenario 2 Assuming Covid-19. 50% degrowth in Cash flow in FY21 & no change in cash flows after FY21. Cost of Capital is even lower at 9%. Fair value is higher by 30% in this scenario vs Scenario 1 It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow – Ray Dalio Interest rates are like gravity in valuation. If interest rates are nothing, values can be almost infinite. If interest rates are extremely high, that's a huge gravitational pull on value – Warren Buffet Sources : Calculations are internal & illustrative in nature, PV – Present Value 9 Refer disclaimers on slide 24
HDFC Balanced Advantage Fund – Portfolio strategy / Asset Allocation 55,000 90.0 SENSEX Equity % of NAV (RHS) 12 6.9 India 10 Year 88.0 YTM % (RHS) 6.7 50,000 i ii iii 45,000 40,000 10 86.0 84.0 6.5 82.0 6.3 80.0 6.1 8 6 4 78.0 5.9 35,000 76.0 74.0 30,000 72.0 2 5.7 0 5.5 70.0 25,000 HDFC Balanced Advantage Fund tactically managed the equity exposure in three phases as highlighted in chart above: i. Markets corrected considerably - Fund increased its allocation to equities ii. Markets recovering – Fund maintained its allocation to equities iii. Markets above Pre Covid-19 levels – Fund reducing its allocation to equities While the Fund has reduced the equity allocation with rising markets, it continues to remain overweight equity led by a positive outlook for equities over medium term In the fixed income portfolio, the Fund duration has been reduced as interest rates moved down Going forward, the long term asset allocation will be driven by equity valuations & outlook for earnings growth, interest rates etc. For latest scheme portfolio visit our website – www.hdfcfund.com; Portfolio as on Apr’21 10 Refer disclaimers on slide 24
HDFC Balanced Advantage Fund – Equity Positioning NIFTY 50 Earnings CAGR Sector Corporate Banks & Financials Valuations Positioning Remarks FY19-23E P/E – FY23E P/B – FY23E HDFC Balanced Advantage Fund 76% 12.7 1.5 Overweight With falling slippages and increasing resolution of NPAs provisioning costs are expected to fall sharply resulting in sharp increase in profitability of Corporate Banks Health Care 21% 23.2 3.7 Overweight API pricing cycle remains strong, with significant benefit in FY21 from Covid-19 related disruptions. Price erosion is stabilizing in the US for base business products. Starting FY21, Indian generics are entering a wave of major product launches in the US after a gap of six years. Retail Banks & Financials 18% 23.4 3.7 Underweight As Fund is overweight Corporate Banks & Financials led by higher earnings growth potential, exposure to Retail & Financials has been maintained at lower end to control sector exposure to Banking Consumer Staples ex Tobacco 16% 49.6 12.0 Underweight Revenue growth is likely to be 10% as penetration in larger categories is high. Margins are at all-time high & higher compared to global peers . There is a risk of valuation de-rating on normalization of discount rates / cost of capital. Consumer Discretionary 17% 17.3 3.1 Underweight Adversely impacted by prevailing environment Proposed capex of 2.5% of GDP in FY22 Budget (average spend was 1.8% in past 5 years) would act as enabler for capex growth & NIP pipeline of USD 1.8 trillion over FY2019-25 should aid growth in infrastructure spending Industrials 14% 14.8 2.6 Overweight Government’s Production Linked Incentive (PLI) Scheme should provide much needed impetus to manufacturing in India and can aid multi-year uptick in capex cycle. HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s . In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these sectors. For Compete portfolio please visit www.hdfcfund.com 11 Refer disclaimers on slide 24
HDFC Balanced Advantage Fund – Equity Positioning NIFTY 50 Earnings CAGR Valuations Positioning Remarks FY19-23E P/E – FY23E P/B – FY23E HDFC Balanced Advantage Fund Materials 16% 16.0 2.4 Underweight The Fund was an investor earlier in the cycle and has reduced exposure as valuations have increased & fall in commodity prices is a risk Information Technology 11% 21.7 5.9 Underweight The Fund was an investor earlier in the cycle and has reduced exposure recently as valuations have become steeper after sharp outperformance by the sector. Tobacco 7% 15.4 3.7 Overweight Attractive valuations Utilities 11% 6.7 0.9 Overweight Attractive valuations and high single digit Dividend Yields Energy 1.2% 15.1 1.2 Overweight Energy valuations appear high due to one company. Excluding of these, the multiples are close to 7x and Dividend Yields of high single digit to low double digit Telecommunication Services n.a. 27.3 4.4 Overweight In FY19, Companies in Telecom sector had reported loss hence EPS CAGR is not relevant 15% 18.2 2.7 Sector Total Source: Kotak Institutional Equities estimates, Data as on 11th May, 2021 HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s . In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these sectors. For Compete portfolio please visit www.hdfcfund.com 12 Refer disclaimers on slide 24
Equity Markets Outlook summary Post opening up, economic recovery has been strong and high frequency activity indicators are normalizing at a fast pace supported by unlocking, fiscal & monetary measures, pent up demand etc. Corporate earnings in Q2FY21 & Q3FY21 have been better than expected and resulted in broad based earnings upgrades FY2021-22 Budget with its focus on growth & capex augurs well for new investment cycle and earnings growth Currently, despite the recent rally, Indian market capitalization is 90% of GDP (based on CY 2022 GDP) & NIFTY 50 is trading at 18.2x FY23E price to earnings ratio, which is reasonable especially given the low interest rate environment and improving economic activity Though the rally is getting broad based, there are select pockets which are still undervalued compared to their long term averages NIFTY50 profits are expected to grow in FY21 ! Further, strong growth likely in FY22 / FY23 Positive outlook for Equities over the long term driven by growth focused budget, low cost of capital, reasonable valuations and strong earnings outlook Significant rise in spread of COVID-19, sharp rise in crude prices, higher than expected NPAs post the moratorium, sharp FPI outflows, sharp increase in US rates etc. are key risks in the near term The information herein is based on the assumption that COVID19 would be behind us by March 2022 and the economy would bounce back by FY23. However, if impact of COVID19 continues after March 2022, various scenarios presented in this document may not hold good 13 Refer disclaimers on slide 24
Covid 2nd Wave – Higher spread, economic impact likely to be temporary 120 The exponential rise in covid -19 cases has caught India off guard. Localised partial lockdowns and stringent restrictions have been imposed to curb the spread; ‒ Lockdown stringency index has inched up but is below the levels seen in April 2020 ‒ Mobility index indicates less people stepping out 100 Google Mobility Index 25 80 0 60 -25 40 -50 workplaces 20 -75 residential 0 -100 retail & recreation Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 50 Oxford Lockdown Stringency Index (India) Current Lockdown vs 2020 Lockdown ‒ More regionally concentrated vis-à-vis nation wide lockdown in 2020 ‒ Manufacturing firms are allowed to operate across most of the sectors 30,000 35.0 30.0 ‒ Firms, manufacturing units, etc. better prepared due to last year’s experience 25,000 ‒ Outstation travel is permitted and inter state / intra-state movement of goods also 20,000 25.0 Weekly Power Demand (Mn KwH) continues 15,000 Economic Activity Indicators have moderated but still significantly better than last year’s 30.0 lockdown 25.0 ‒ Power demand, average daily import duty collection and railway goods movement at healthy levels, while unemployment rate has increased in recent times 20.0 Total 15.0 Tonnage excluding food 10.0 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 ‒ Reverse migration happening at significantly lower pace Railway tonnage movement (mt) Unemployment rate (%) 20.0 15.0 10.0 5.0 Mar/21 May/21 Feb/21 Dec/20 Oct/20 Nov/20 Jul/20 Aug/20 Apr/20 May/20 Jan/20 Lockdown is likely to impact the pace of improvement in H1FY21 but on a full year basis Mar/20 0.0 the impact is not likely to be material assuming situation might improve going forward 2 Sources: CMIE, Icegate.gov.in, MOFSL, Raildrishti, Google mobility data 14 Refer disclaimers on slide 24
Indian Economy : Covid 2nd wave a minor hiccup ? GDP has witnessed a V-shape recovery improve going forward and sequentially growth is likely to ― Private consumption is likely to see recovery as the confidence returns with vaccine rollout ― Investment should also see pick up with capacity utilisation inching up, government capex and impact of PLI schemes RBI estimates GDP to grow by 10.5% in FY22 Momentum of economic recovery remains strong and economic activity is normalizing at a fast pace. ― ― High frequency indicators points that Q4FY21 is likely to be better sequentially than Q3FY21; Select sectors still under pressure Surge in Covid-19 cases can impact the pace of revival, to a certain extent Metal prices witnessed a sharp rebound after easing of lockdowns—prices are now higher than Pre-Covid-19 levels for base metals / steel driven by: ‒ Rebound in demand post easing of lockdowns especially in China ‒ Supply disruptions in many countries ‒ Structural under-investment in supply in last decade (2008-2018) Source: UBS YoY Growth (%) Railway tonnage movement Feb-20 Mar-20 Apr-20 Sep-20 DecJan-21 Feb-21 Mar-21 Apr-21 20 NA NA -35.2 15.3 8.6 8.8 5.5 26.3 Power Demand (YOY) 11.5 -8.3 -24.0 4.6 5.0 4.8 3.4 22.8 70.4 40.2 Average E-Way bill generated 10.3 -26.0 -83.6 9.6 15.9 10.5 13.8 78.7 582.6 Credit growth 6.1 6.1 6.8 5.1 6.0 5.9 6.6 5.6 5.3 Manufacturing PMI 54.5 51.8 27.4 56.8 56.4 57.7 57.5 55.4 55.5 Services PMI 57.5 49.3 5.4 49.8 52.3 52.8 55.3 54.6 NA Gross GST collections 8.3 -8.4 -71.6 3.9 11.6 8.1 7.4 27.0 337.8 Unemployment 7.8 8.8 23.5 6.7 9.1 6.5 6.9 6.5 8.0 Retail E-transactions 70.7 31.9 -12.6 67.4 65.8 0.8 71.7 97.2 189.4 PV registration 11.0 -0.3 -90.2 31.9 35.0 4.1 20.2 36.4 875.8 2W registration 7.7 37.7 -75.9 -11.0 13.5 -7.8 -15.4 -35.5 171.6 Tractor registration 15.0 6.3 -84.2 88.1 42.3 16.2 30.2 39.6 571.2 MHCV registration -2.0 12.4 -86.2 -61.5 -15.6 -14.2 -19.7 -27.4 414.7 LCV registration 25.1 50.6 -73.9 -1.2 -4.7 -25.0 -29.9 -37.7 171.1 Metal prices rebound sharply in 2020 & cross Pre-covid levels Sources: MOSPI, JM Financials, Bloomberg, CEIC, vehicle sales-global passenger car and light truck sales For the purpose of the Pre-Covid-19 data, Dec 2019 data is taken is taken. Latest data is for month for which latest data is available as on 07 April 2021 3 15 Refer disclaimers on slide 24
Economic Recovery – An Uneven one? HH Income Distribution (FY20E) Economic impact of Covid-19 has been different across different categories of Households (HHs) India HH Income pyramid points that over 75% of Indian HH earn less than INR 4 lakhs per annum ‒ Large number of these are employed in unorganised segment / casual workers / self employed / services sector Sources: UBS Employment in Services Sector Services (including real estate), which are most impacted due to lockdowns employs over Employment by Sectors 54% of the labour force Contact intensive services like retail trade, travel tourism, personal services, etc. are impacted more ‒ These sectors employs 28% of the total labour force of India Sources: CMIE Survey ‒ Given the nature of jobs, the incomes and savings are not likely to be high for majority of this section We are in the same storm, but not in the same boat 4 Impact on higher income earning Households is less ‒ Recovery in lower income earning segments has been weaker 16 Refer disclaimers on slide 24
Indian Economic Outlook – Brighter than Pre-Covid-19 ? 150.0 Capital flows (USD bn) Low Interest rates and capital flows ‒ Low global yields improve access to long term and cheaper capital ‒ Cost of servicing existing stock of external debt falls Mar/21 Mar/20 Mar/19 Mar/18 Mar/17 Mar/16 Mar/15 Mar/14 Mar/13 Mar/12 Mar/11 Mar/10 Mar/09 Mar/08 Mar/07 Mar/06 Mar/05 Mar/04 Mar/03 ‒ a large domestic market & improving ease of doing business ‒ skilled human resources available at competitive costs ‒ concessional corporate tax rate (15%) for new manufacturing units set up Steps taken to boost domestic manufacturing PLI Schemes for select industries to promoter import substitutions and increase exports Raising duties under Phased Manufacturing Programme to strengthen domestic manufacturing and discourage imports Rationalization of Labour Laws before March 2023 Agriculture reforms to remove bottlenecks and improving market access India using tariff and non-tariff measures to aggressively support Opening up defence sector and banning imports of select items manufacturing in India Revision of MSME definition to incentivise scaling of operations Source: Morgan Stanley; Publicly available information Production linked incentive scheme (PLI) : Aptly timed To capitalize on large global manufacturing opportunity, Indian government for the first time is providing financial incentives to private enterprises through PLI scheme that should boost domestic manufacturing and can attract large investments Stable & Resilient Consumption demand growing at a regular pace PLI Scheme approved for 13 key sectors (INR bn) Incentives Telecom & 410 122 Mobile phone Netwrkg. Prod. Drug Intermediaries, Textile: MMF 69 107 APIs segment/tech. 34 109 Medical Devices Food products Advance Chem./Cell HE Solar PV 181 45 Battery Modules Electronic/Technolog 50 62 White Goods y Prod. Automobiles & Auto 570 63 Speciality Steel Comp. Pharmaceuticals 150 1,973 Total drugs 5 Source: Ministry of Electronics and Information Technology, International Trade Center, Ministry of Finance, PIB 17 Refer disclaimers on slide 24 16.7 6 India could be a beneficiary of shift in manufacturing from China due to following reasons Import cover - TTM Average 11 50.0 - ‒ Comfortable Import cover 16 100.0 Sources: Bloomberg, JM Financials, Kotak Institutional Equities, CMIE Capital flows – sum of FPI, FDI, NRI deposit and ECB in each year 21
Interest Rate Outlook Factors supporting lower yields Factors opposing lower yields RBI and major Central banks likely to continue with accommodative stance and low rates Large supply of dated securities by Central and State Governments Continued intervention by RBI through unconventional tools like G-SAP*, Operation TWIST, LTROs, Targeted LTROs, increasing HTM limit, OMOs for State Development Loans, etc. Excess SLR securities holding of PSU banks Average inflatio
HDFC Balanced Advantage Fund is similar to that of erstwhile HDFC Prudence Fund, the track record (i.e. since inception date, dividend history, etc.) / past performance of erstwhile HDFC Prudence Fund have been considered, in line with SEBI circular on Performance disclosure post consolidation/ merger of scheme dated April 12, 2018.
CIBC Balanced Fund . CIBC Dividend Income Fund. 3. CIBC Dividend Growth Fund. 3. CIBC Canadian Equity Fund. 3. CIBC Canadian Equity Value Fund. 3. CIBC Canadian Small-Cap Fund . CIBC U.S. Equity Fund. 3 CIBC U.S. Small Companies Fund. 3. CIBC Global Equity Fund . CIBC International Equity Fund. 3. CIBC European Equity Fund. 3. CIBC Emerging .
Source: Annual Reports of SBI and HDFC of various years From the above table is observed that operating profit has a hiking trend for both SBI and HDFC over the years and mean of operating profit of SBI is higher than HDFC. Table-4:Net profit of SBI and HDFC Bank during the year 2013-14 to 2017-18 Rs. in Crore Particu lars 201 3-14 201 4-15
UC Pathway Income Fund UC Pathway Fund 2015 UC Pathway Fund 2020 UC Pathway Fund 2025 . UC Pathway Fund 2030 UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045 . UC Pathway Fund 2050 UC Pathway Fund 2055 UC Pathway Fund 2060 . CORE FUNDS - 13.7 billion Bond and Stock Investments . Bond Investments Short-Term UC Savings Fund
HDFC MUTUAL FUND Investors must read the Key Information Memorandum, the instructions and Product Labeling on cover page before completing this Form. The Application Form should be completed in English and in BLOCK LETTERS only. Application Form (Except for HDFC Gold Exchange Traded Fund and
UC Pathway Funds. UC Pathway Income Fund UC Pathway Fund 2020 UC Pathway Fund 2025. UC Pathway Fund 2030. UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045. UC Pathway Fund 2050. UC Pathway Fund 2055 UC Pathway Fund 2060. UC Pathway Fund 2065. CORE FUNDS - 17.0 billion Bond and Stock Investments
TARGET DATE FUNDS - 9.1 billion UC Pathway Funds UC Pathway Income Fund UC Pathway Fund 2020 UC Pathway Fund 2025 UC Pathway Fund 2030 UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045 UC Pathway Fund 2050 UC Pathway Fund 2055 UC Pathway Fund 2060 UC Pathway Fund 2065 CORE FUNDS - 12.9 billion Bond and Stock Investments Bond .
3 HIGHLIGHTS/SUMMARY OF THE SCHEME Name of the Scheme LIC MF Balanced Advantage Fund Category of Scheme Balanced Advantage Type of Scheme An open ended Dynamic Asset Allocation Fund Investment Objective The investment objective of the scheme is to provide capital appreciation/ income to the investors
accounting equation as shown above. The accounting equation is a simple expression of the fact that at any point in time the assets of the entity will be equal to its liabilities plus its equity. The transactions of a new business entity in its first five days are as follows: Required:
