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Company Profile HDFC

Housing Development Finance Corporation Ltd is India's premier housing finance company.
The Corporation's main business is to provide loans for the purchase or construction of
residential houses. Their distribution network spans 289 outlets, which include 71 offices of the
wholly owned distribution company, HDFC Sales Pvt Ltd. In addition, they cover over 2,400
locations through outreach programmes. The company also has offices in Dubai, London and
Singapore and service associates in the Middle East region, to provide housing loans and
property advisory services to non-resident Indians (NRIs) and persons of Indian origin (PIOs).
HDFC's product range includes loans for purchase and construction of a residential unit,
purchase of land, home improvement loans, home extension loans, non-residential premises
loans for professionals and loan against property, while its flexible repayment options include
Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP). The
company's subsidiaries include HDFC Developers Ltd, HDFC Investments Ltd, HDFC
Holdings Ltd, HDFC Trustee Company Ltd, HDFC Realty Ltd, HDFC Property Ventures Ltd,
HDFC Sales Pvt Ltd, HDFC Ventures Trustee Company Ltd, HDFC Venture Capital Ltd,
HDFC Ergo General Insurance Company Ltd, HDFC Standard Life Insurance Company Ltd,
GRUH Finance Ltd, HDFC Asset Management Company Ltd and HDFC Bank Ltd. Housing
Development Finance Corporation Ltd was incorporated in the year 1977. The Corporation is
established with the primary objective of meeting a social need that of promoting home
ownership by providing long-term finance to households for their housing needs. The company
was promoted with an initial share capital of Rs 100 million. In the year 1979, the Corporation
introduced HDFC Certificate of Deposit Scheme. In the year 1981, they introduced their first
retail Deposit Product. They promoted a wholly owned subsidiary, HDFC Developers during
the year. In the year 1982, the Corporation introduced the Line of Credit Product (LOC) for
employee owned housing. In the year 1985, the Corporation introduced the Home Savings Plan
based on the 'Bausparkassen' model, West Germany and the 'Step-up Repayment Facility'. In
the year 1988, the Corporation in with India's leading financial institutions and commercial
banks promoted Gujarat Rural Housing Finance Corporation Ltd (GRUH Finance), Housing
Promotion and Finance Corporation Ltd (now SBI Home Finance), Can Fin Homes Ltd and
Infrastructure Leasing and Financial Services (IL&FS), and the Credit Rating Information
Services of India Ltd (CRISIL). They introduced Telescopic Loan Plan and Short Term
Bridging Loan products. In the year 1989, the Corporation introduced two new products,
namely Home Improvement loans & Home Extension loans. In the year 1990, the Corporation
in association with the United Nations Centre for Human Settlements promoted the Coalition of
Housing Finance Institutions in Asia. In the year 1991, they re-launched their retail fixed
deposit products. In the year 1993, the company made a joint venture with General Electric
Capital Corporation of US to promote Countrywide Consumer Financial Services Ltd for
consumer finance. In the year 1994, the Corporation introduced Non-Residential Premises
Loans for Individuals. In the year 1995, the Corporation made a Strategic alliance with

NatWest Markets (UK) and promoted the HDFC Bank. They made a joint venture with IL&FS
and Colliers Jardine Asia Pacific Ltd and promoted Colliers Jardine India Property Services
Ltd. Also, they signed an MoU with Standard Life Assurance Co. of UK for life insurance. In
the year 1997, the Corporation promoted the first private sector housing finance company,
namely Delta Brac Housing Finance Corporation Ltd in Bangladesh. In the year 1998, the
Corporation in partnership with a South-based NGO launched the Indian Association for
Savings & Credit (IASC), a pioneering micro-finance institution operating in the states of
Tamil Nadu and Kerala. Also, they introduced Home Equity Loans and Corporate Employees
Group Finance Arrangement. In the year 1999, the Corporation invested in a new Housing
Finance company in Sri Lanka. They launched the Corporation website www.hdfcindia.com
(now hdfc.com). Also, they introduced the Adjustable Rate Home Loans and became the first
housing finance institution to do so. In the year 2000, the Corporation inaugurated a new
HDFC Standard Life office in Mumbai. They launched their first Property Fair and they issued
their first Mortgage Backed Securities. The Corporation made a joint venture with Mahindra &
Mahindra group and promoted propertymartindia.com, a website for providing a range of real
estate services. During the year, the Corporation acquired the entire shareholding of Hometrust
Housing Finance Company Ltd. Also, GRUH became a subsidiary of the Corporation. They
made a joint venture with TCS and promoted Intelenet Global Services Limited for IT enabled
services. Also, they entered into joint venture with Standard Life Investments for promoting the
HDFC Mutual Fund. In the year 2001, the Corporation in association with State Bank of India,
Dun & Bradstreet and Trans Union International Inc. (TU) promoted Credit Information
Bureau (India) Ltd. They opened their 100th office at Amristar. In the year 2002, the company
made a joint venture with Chubb Corporation, USA and promoted HDFC-Chubb General
Insurance Company Ltd for non-life insurance. In June 2003, they singed a USD 200 million
loan agreement with International Finance Corporation (IFC), Washington. In May 2003, the
Corporation signed a Technical Service Contract with Egyptian American Bank for providing
technical assistance for setting up Egypt's first private sector led mortgage finance company.
Egyptian Housing Finance Company. In February 2005, the Corporation entered into an
implementation agreement with NHB and Asian Development Bank for technical assistance for
a study on the development of an agency/ secondary mortgage institution to facilitate issuance
of residential mortgage backed securities along similar lines as Fannie Mae in USA. During the
year 2006-07, the Corporation approved 8 schemes in the area of low-income housing and
micro-enterprise financing by way of financial intermediation to partner non-government
organisations and micro-finance institutions. They divested their equity holding in HDFC-SL in
favour of Standard Life Assurance Company, UK for a consideration of Rs 5.66 crore. During
the year 2007-08, the Corporation approved 16 new schemes under the KfW Entsicklungsbank
lines in the area of low-income housing and micro-finance by way of financial intermediation
to partner non-government organisations across India. They launched two major advertising
campaigns, namely 'Asset Plus' and 'Empowerment'. 'Asset Plus' was launched primarily to
create awareness about home equity loans. 'Empowerment' highlighted the fact that the
Corporation's employees are empowered to deploy all resources available to them to provide
professional services to customers. During the year, the Corporation acquired the entire 26% of
the equity of HDFC Chubb General Insurance Company Ltd from Chubb Global Financial
Service Corporation, USA, consequent to which the company became a wholly owned
subsidiary of the Corporation. In June 2007, consequent to a preferential offer by HDFC Bank

Ltd, the Corporation acquired 13,582,000 shares of HDFC Bank for a consideration of Rs
1,390.11 crore. In October 2007, the Corporation and Standard Life Investments realigned their
shareholding in HDFC Asset Management Company Ltd. Accordingly, the Corporation
increased their stake to 60% in HDFC-AMC by acquiring 9.9% from Standard Life
Investments. Also, the Corporation and ERGO International AG (ERGO), the primary
insurance entity of Munich Re Group (Germany) entered into a joint venture, where by HDFC
sold a 26% equity stake of the company to ERGO. As a result of this new joint venture, the
company was named HDFC ERGO General. During the year, the Corporation divested 7.15%
of its equity holding in HDFC-SL in favour of Standard Life Assurance Company, UK for a
profit of Rs120.94 crore. Also, they divested their entire shareholding in Intelenet Global
Service Pvt Ltd for a profit of Rs 313.25 crore. As a result, Intelenet Global Service Pvt Ltd
ceased to be an associate of the Corporation. During the year 2008-09, the Corporation
approved 12 new schemes under the KfW Entsicklungsbank lines in the area of low-income
housing and micro-finance by way of bulk loans to partner Non-Government Organisations and
micro-finance institutions. During the year 2009-10, the Corporation introduced 'HDFC
Systematic Savings Plan', which is a monthly savings plan offering a variable rate of interest.
They launched a key brand campaign - 'HDFC - because every family needs a home'. The
objective of the campaign was to connect with HDFC's existing customers as well as
prospective customers, making the HDFC brand synonymous with a home. In April 2010, the
company launched a special home loan product at a fixed rate of 8.25% per annum up to March
31, 2011, 9% for the period between April 4, 2011 and March 31, 2012 and the applicable
floating rate for the balance term. This is a flexible product with dual rates. They also relaunched their product loan against property to assist customers. During the year 2010-11,
HDFC Real Estate Destination (HDFC RED), an on-line real estate portal was launched with
the key objective of providing a single destination to potential home buyers to search and shortlist desired properties that suit their requirements. During the year 2011-12, the Corporation
incorporated a new wholly owned subsidiary, namely HDFC Education And Development
Services Pvt Ltd.

HDFC Equity Fund

Investment Objective | Scheme Information & NAV | Investment Pattern & Strategy | Portfolio |
Returns and benchmarks | Systematic Investment Plan (SIP) Details | Fund Manager | Offer
Document / Scheme Information Document (SID) | Application Form
This product is suitable for investors who are seeking*:

capital appreciation over long term.

investment predominantly in equity and equity related instruments of medium to large sized companies

high risk.

(BROWN)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Note: Risk is represented as:
(BLUE) investors
understand that their
principal will be at low risk

(YELLOW)) investors
understand that their
principal will be at medium
risk

(BROWN) investors
understand that their
principal will be at high risk

Investment Objective
The investment objective of the Scheme is to achieve capital appreciation.
Basic Scheme Information
Nature of Scheme
Inception Date

Open Ended Growth Scheme

January 01, 1995
HDFC Equity Fund
HDFC Equity Fund Direct Plan

Option/Plan

Each Plan offers Growth Option and Dividend Option.

Dividend Option offers Payout and Reinvestment Facilities.
Direct Plan is for investors who purchase /subscribe Units in a
Scheme directly with the Fund and is not available for
investors who route their investments through a Distributor.

Entry Load
(For Lumpsum Purchases and
investments through SIP/STP)

NIL
Unfront 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.
Please click here to go through the addendum.

Exit Load
(as a % of the Applicable NAV)

In respect of each purchase / switch-in of units, an

Exit Load of 1.00% 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.

(i) No exit load shall be levied for switching between

Options under the same Plan within a Scheme.
(ii) Switch of investments to Direct Plan within the
same Scheme shall be subject to applicable exit load,
unless the investments were made without any
distributor code.
(iii) No exit load shall be levied for switch-out from
Direct Plan to other Plan within the same Scheme.
However, any subsequent switch-out or redemption of
such investment from the other Plan shall be subject to
exit load based on the original date of investment in
the Direct Plan.
(iv) Switch of investments between Plans under a
Scheme having separate portfolios, will be subject to
applicable exit load.
(v) No exit load will be levied on Bonus Units and
Units allotted on Dividend Re-investment.

For new investors :Rs.5000 and any amount thereafter .

For existing investors : Rs. 1000 and any amount thereafter.
Minimum Application Amount

For Monthly frequency, minimum SIP installment Rs. 500.

For Quarterly frequency, minimum SIP installment Rs. 1500.

Lock-In-Period
Net Asset Value Periodicity
Redemption Proceeds
Tax Benefits
(As per present Laws)

Nil
Every Business Day.
Normally dispatched within 3-4 Business days
Please click for details
On the first 100 crores daily net assets 2.50%
On the next 300 crores daily net assets 2.25%
On the next 300 crores daily net assets 2.00%
On the balance of the net assets 1.75%

Current Expense Ratio (#)

(Effective Date 01st October 2012)

In addition to the above a charge of 20 bps on the daily net assets plus a
proportionate charge in respect sales beyond T-15 cities subject to
maximum of 30 bps on daily net assets.

Excluding Service Tax on Investment Management Fees, if any.

Direct Plan shall have a lower expense ratio by 0.67%.

(#) Any change in the expense ratio will be updated within two working days.

Plan Name
Dividend Option
Growth Option
Direct Plan - Dividend Option
Direct Plan - Growth Option
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NAV Date
11 May 2014
11 May 2014
11 May 2014
11 May 2014

NAV Amount
-

Investment Pattern

The asset allocation under the Scheme will be as follows :

Sr.No.
1
2

Asset Type
Equities and Equity Related Instruments
Debt & Money Market Instruments*

(% of Portfolio)
80 - 100
0 - 20

Risk Profile
Medium to High
Low to Medium

*Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the
scheme.
The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such as Futures
& Options and such other derivative instruments as may be introduced from time to time for the
purpose of hedging and portfolio balancing and other uses as may be permitted under the
Regulations.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas
markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual funds
and such other instruments as may be allowed under the Regulations from time to time.
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock
Lending activities. Also refer to Section on Stock Lending by the Fund in the SID.
If the investment in equities and related instruments falls below 70% of the portfolio of the
Scheme at any point in time, it would be endeavoured to review and rebalance the composition.

Notwithstanding anything stated above, subject to the regulations, the asset allocation pattern
indicated above may change from time to time, keeping in view market conditions, market
opportunities, applicable regulations and political and economic factors. It may be clearly
understood that the percentages stated above are only indicative and are not absolute and that
they can vary substantially depending upon the perception of the AMC, the intention being at all
times to seek to protect the NAV of the scheme. Such changes will be for short term and
defensive considerations. Provided further and subject to the above, any change in the asset
allocation affecting the investment profile of the Scheme and amounting to a change in the
Fundamental Attributes of the Scheme shall be effected in accordance with sub-regulation (15A)
of regulation 18 of SEBI regulations.
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Investment Strategy
In order to provide long term capital appreciation, the Scheme will invest predominantly in
growth companies. Companies selected under this portfolio would as far as practicable consist of
medium to large sized companies which:

are likely to achieve above average growth than the industry;

enjoy distinct competitive advantages, and

have superior financial strengths.

The aim will be to build a portfolio, which represents a crosssection of the strong growth
companies in the prevailing market. In order to reduce the risk of volatility, the Scheme will
diversify across major industries and economic sectors. A part of the funds may be invested in
debt and money market instruments. The Scheme will retain the flexibility to invest in the entire
range of debt instruments and money market instruments.
Investment in Debt securities (including securitised debt) and Money Market Instruments will be
as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid
under SEBI (MF) Regulations.
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Systematic Investment Plan (SIP) Details
Minimum
Application Entry Load
Amount(Rs.)
HDFC Equity
Rs.500 for
NIL
Fund Monthly &
Dividend/Growth*Rs.1500 for
Quarterly

Serial
Scheme Name
No.
1

Exit Load

In respect of each purchase /

switch-in of units, an Exit Load of
1.00% 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.

Systematic Investment Plan (SIP)

HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount you
choose is invested in a mutual fund scheme of your choice. The dates currently available for SIPs
are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. Youll be amazed to learn about the
many benefits of investing through HDFC MF SIP.
Click Here for Scheme Wise Details for SIP
Benefit 1
Become A Disciplined Investor
Being disciplined - Its the key to investing success. With the HDFC MF Systematic Investment
Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples of Rs. 100
thereof*) to be invested every month in one of our schemes.
Think of each SIP payment as laying a brick. One by one, youll see them transform into a
building. Youll see your investments accrue month after month. Its as simple as giving at least 6
postdated monthly cheques to us for a fixed amount in a scheme of your choice. Its the perfect
solution for irregular investors.
*Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment Form for details.
Benefit 2
Reach Your Financial Goal
Imagine you want to buy a car a year from now, but you dont know where the down-payment
will come from. HDFC MF SIP is a perfect tool for people who have a specific, future financial
requirement. By investing an amount of your choice every month, you can plan for and meet
financial goals, like funds for a childs education, a marriage in the family or a comfortable
postretirement life. The table below illustrates how a little every month can go a long way.
Monthly Savings - What your savings may generate
Savings per month
(for 15 years)

Total amount invested

(Rs. in Lacs)

5000
4000
3000
2000
1000

9.0
7.2
5.4
3.6
1.8

Rate of return
6.0%
8.0%
10.0%
(rupees in lacs, 15 years later)*
14.6
17.4
20.9
11.7
13.9
16.7
8.8
10.4
12.5
5.8
7.0
8.3
2.9
3.5
4.2

*Monthly instalments, compounded monthly, for a 15-year period.

Disclaimer: The illustration above is merely indicative in nature and should not be construed as
investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual
Fund Scheme(s). Please read Risk Factors.
Benefit 3
Take Advantage of Rupee Cost Averaging
Most investors want to buy stocks when the prices are low and sell them when prices are high.
But timing the market is timeconsuming and risky. A more successful investment strategy is to
adopt the method called Rupee Cost Averaging. To illustrate this well compare investing the
identical amounts through a SIP and in one lump sum.
Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in
January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The
following table illustrate how their respective investments would have performed from Jan to
Dec:
Month
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04

NAV
9.345
9.399
8.123
8.750
8.012
8.925
9.102
8.310
7.568
6.462
6.931
7.600

Sureshs Investment
Amount
Units
1000
107.0091
1000
106.3943
1000
123.1072
1000
114.2857
1000
124.8128
1000
112.0448
1000
109.8660
1000
120.3369
1000
132.1353
1000
154.7509
1000
144.2793
1000
131.5789

Rajeshs Investment
Amount
Units
12000
1284.1091

*NAV as on the 10th every month. These are assumed NAVs in a volatile market
Disclaimer: The illustration above is merely indicative in nature and should not be construed as
investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual
Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you from
making a loss in declining markets. Pleaseread Risk Factors.
As seen in the table, by investing through SIP, you end up buying more units when the price is
low and fewer units when the price is high. However, over a period of time these market
fluctuations are generally averaged. And the average cost of your investment is often reduced.

At the end of the 12 months, Suresh has more units than Rajesh, even though they invested the
same amount. Thats because the average cost of Sureshs units is much lower than that of
Rajesh. Rajesh made only one investment and that too when the per-unit price was high.
Sureshs average unit price = 12000/1480.6012 = Rs. 8.105
Rajeshs average unit price = Rs. 9.345

Benefit 4
Grow Your Investment With Compounded Benefits

It is far better to invest a small amount of money regularly, rather than save up to make one large
investment. This is because while you are saving the lump sum, your savings may not earn much
interest.
With HDFC MF SIP, each amount you invest grows through compounding benefits as well. That
is, the interest earned on your investment also earns interest. The following example illustrates
this.
Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.
5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3 lakhs.Arjun
also starts working when he is 20 years old. But he doesnt invest monthly. He gets a large bonus
of Rs. 3 lakhs at 25 and decides to invest the entire amount.
Both of them decide not to withdraw these investments till they turn 50. At 50, Nehas
Investments have grown to Rs. 46,68,273* whereas Arjuns investments have grown to Rs.
36,17,084*. Nehas small contributions to a SIP and her decision to start investing earlier than
Arjun have made her wealthier by over Rs. 10 lakhs.
*Figures based on 10% p.a. interest compounded monthly.
Disclaimer: TheThe illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s). Please read Risk Factors.
Benefit 5
Do All This Effortlessly
Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an
Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and in
multiples of Rs. 100 thereof*) and well invest the money every month in a fund of your choice.
The plans are completely flexible. You can invest for a minimum of six months, or for as long as
you want. You can also decide to invest quarterly and will need to invest for a minimum of two
quarters.
All you have to do after that is sit back and watch your investments accumulate.
Please refer to the SIP Enrolment Form for terms and conditions before enrolment.
*Minimum amounts may differ for each Scheme.