HDFC Index Funds – NIFTY 50 Plan & Sensex Plan

“The best way to own common stocks is through an index fund.” Warren Buffet, Chairman of Berkshire Hathaway

April 2021

1 What does Index Fund mean ?

 An Index Fund is a mutual fund scheme that endeavors to track/replicate the constituents of its target benchmark index (such as S&P BSE SENSEX, NIFTY 50).

 An Index Fund aims to maintain a portfolio of investments that is weighted the same as its benchmark index in order to mirror its performance.

 Index Funds are passively managed funds :

 There is no active selection of stocks by the Fund Manager

 The portfolio is rebalanced periodically only when companies enter/exit the index

 The expense ratio of index funds are generally lower than than actively managed equity funds

 Index funds in India, generally track the two major broad based indices i.e NIFTY 50 & S&P BSE Sensex Indices

2 Benefits of Investing in Index Funds

 Index Funds are an easy and convenient way to invest in an index

 Exact Exposure to the markets as per the underlying benchmark index, subject to tracking error

 Index funds aims to minimize unsystematic risk(risk pertaining to companies, sectors etc) in the investor’s portfolio

 Diversification – Generally tracks broad based indices thus reducing the impact of decline in value of any one stock or industry, sector

 Low Costs – Since index funds are passively managed, cost are kept relatively low

 Transparency – As indices are pre-defined, investors know the securities and proportion in which their money will be invested

3 3 Presenting

HDFC Index Funds

HDFC Index Fund - NIFTY 50 Plan HDFC Index Fund – Sensex Plan An open ended scheme replicating/tracking S&P BSE SENSEX Index An open ended scheme replicating/tracking NIFTY 50 Index

Name of Scheme This product is suitable for investors who are seeking* Riskometer

• Returns that are commensurate with the performance of the NIFTY 50, HDFC Index Fund - NIFTY 50 Plan subject to tracking errors over long term • Investment in equity securities covered by the NIFTY 50

• Returns that are commensurate with the performance of the S&P BSE HDFC Index Fund - SENSEX Plan SENSEX, subject to tracking errors over long term • Investment in equity securities covered by the S&P BSE SENSEX

Investors understand that their principal will be at moderately high risk

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. For latest riskometers, kindly refer www.hdfcfund.com 4 HDFC Index Fund – NIFTY 50 plan

Investment Objective : The investment objective of the Scheme is to generate returns that are commensurate with the performance of the NIFTY 50 Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.

Product Features

 The scheme has NIFTY 50 Total Return Index as the underlying Benchmark Index

 The scheme invests 95% to 100% of its total assets in constituents of NIFTY50 Index in the same proportion as their weights in the index.

 The fund has low expense ratio as compared to other actively managed equity funds

 Ideal for those investors who would like to participate in the India growth story by investing in well-diversified portfolio of well known large cap companies comprising the index

5 About the Benchmark index : NIFTY 50 Index

 The NIFTY 50 index is a well-diversified 50 companies index accounting for 13 broad sectors of the economy, reflecting overall market conditions. NIFTY 50 Index is computed using free float market capitalization method.

 The NIFTY 50 Index represents about 66.8% of the free float market capitalization of the stocks listed on NSE as on March 29, 2019.

 The total traded value of NIFTY 50 index constituents for the last six months ending March 2019 is approximately 53.4% of the traded value of all stocks on the NSE.

 Impact cost^ of the NIFTY 50 for a portfolio size of Rs.50 lakhs is 0.02% for the month March 2019. Eligibility Criteria for Selection of Constituent Stocks:

i. For a stock to qualify for possible inclusion into the NIFTY50, have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations, for the basket size of Rs. 100 Million.

ii. The company should have a listing history of 6 months.

iii. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.

iv. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

Index Re-Balancing: Index is re-balanced on semi-annual basis. ^Impact cost represents the cost of executing a transaction in a given stock, for a specific predefined order size, at any given point of time. Source : www.nseindia.com 6 Why to Invest in NIFTY 50 Index

 NIFTY 50 Index is one of the best market representatives of Indian Markets: Largest traded index in India and among the top 5 traded indices in the world

 Diversification: Buying a single unit currently offers diversification of 50 stocks across 13 broad sectors

 Transparency: NIFTY 50 Index constituents are made available in public domain on a daily basis by NSE

 Hedging option available: The Index has a derivative listed on NSE called “NIFTY” which can be utilized to hedge the investment during extreme volatility

 Index track Record: Base date Nov 1995, the index has a track record of over 24 years, NIFTY 50 index consist of the 50 most liquid stocks traded on the National Stock Exchange

7 Product Features – NIFTY 50 Plan

Type of Scheme An open ended scheme replicating/tracking NIFTY 50 Index Inception Date July 17, 2002 Mr. Krishan Kumar Daga (Since October 19, 2015) and Arun Agrawal (Since August 24, 2020) Fund Manager

Investment Plans Regular Plan & Direct Plan Investment Options Each Plan offers Growth option only

Minimum Application Amount Purchase: Rs. 5,000 and any amount thereafter (Under Each Plan/Option) Additional Purchase: Rs. 1,000 and any amount thereafter

Total Expense Ratio Regular: 0.30% (As on Mar 31, 2021) Direct: 0.10%

Tracking Error 0.09% (Annualised tracking error is calculated based on daily rolling returns for the last 12 months) (As on Mar 31, 2021)

• In respect of each purchase / switch-in of units, an exit load of 0.25% is payable if units are redeemed / switched – out within 3 days from the date of allotment • No exit load is payable if units are redeemed / switched – out after 3 days from the date of allotment • In respect of systematic transactions such as SIP , STP etc exit load prevailing on the date of registration/enrolment shall be levied. Exit Load No Entry/ Exit Load shall be levied on bonus units and units allotted on dividend reinvestment.

For further details on load structure, please refer to the Scheme Information Document.

Benchmark NIFTY 50 Total Return Index

For further details refer Scheme Information Document/Key Information Memorandum available on our website www.hdfcfund.com 8 Top 10 Stocks & Sectors – NIFTY50 Plan

Name Of the Instrument Industry % to NAV HDFC Bank Ltd. Banks 10.38 Reliance Industries Ltd. Petroleum Products 10.33 Infosys Limited Software 8.09 Housing Development Fin. Corp. Ltd.£ Finance 7.18 ICICI Bank Ltd. Banks 6.42 Tata Consultancy Services Ltd. Software 5.25 Kotak Mahindra Bank Limited Banks 4.10 Hindustan Unilever Ltd. Consumer Non Durables 3.46 ITC Ltd. Consumer Non Durables 3.05 Axis Bank Ltd. Banks 2.80

$ Sponsor For complete portfolio details refer www.hdfcfund.com. The portfolio composition as on March 31, 2021 . Industry Classification as recommended by AMFI, Data is as of Dec 31, 2020 unless otherwise specified. 9 HDFC Index Fund – Sensex plan

Investment Objective : The investment objective of the Scheme is to generate returns that are commensurate with the performance of the S&P BSE SENSEX Index, subject to tracking errors There is no assurance that the investment objective of the Scheme will be realized.

Product Rationale

 The scheme has S&P BSE Sensex Total Return Index as the underlying Benchmark Index

 The scheme invest 95% to 100% of its total assets in constituents of S&P BSE Sensex Index in the same proportion as their weights in the index.

 The fund has low expense ratio as compared to other actively managed equity funds

 Ideal for those investors who would like to participate in the India growth story by investing in well-diversified portfolio of well known large cap companies comprising S&P BSE Index

10 About the Benchmark index : S&P BSE Sensex Index

 The S&P BSE Sensex index is designed to measure the performance of the 30 largest, most liquid and financially sound companies across key sectors of the Indian economy that are listed at BSE

 The Index represents the large-cap companies and is calculated on a float-adjusted market-cap-weighted methodology.

 The S&P BSE Sensex index has a long history of more than 34 years and cover more than 40% of total market cap of the listed universe at BSE Ltd.

 The index generally attempts to maintain index sector weights that are broadly line with the overall market

Eligibility Criteria for Selection of Constituent Stocks:

Eligible Universe. The index is derived from the constituents of the S&P BSE 100. The inclusion of DVRs in the index will result in more than 30 stocks in the index. However, the number of companies in the index remains fixed at 30. Stocks in the eligible universe must satisfy the following eligibility factors in order to be considered for index inclusion:

i. Listing History. Stocks must have a listing history of at least six months at BSE. ii. Trading Days. The stock must have traded on every trading day at BSE during the six month reference period. iii. Multiple Share Classes. DVRs satisfying the above eligibility criteria are aggregated with the company’s common stock and index construction is done based on the aggregated company data as detailed below.

Index Re-Balancing: Index is re-balanced on semi-annual basis. Source : www.bseindia.com 11 Why to Invest in S&P BSE Sensex Index

 Index History: Launched in January 1986, the S&P BSE SENSEX is the oldest and one of the most prominent broad based benchmark in India

 Diversification: Buying a single unit currently offers diversification of 30 stocks across broad sectors

 Transparency: S&P BSE Sensex Index constituents are made available in public domain on a daily basis by BSE

 Hedging option available: The Index has a derivative listed on NSE called “S&P BSE SENSEX® Futures” which can be utilized to hedge the investment during extreme volatility

12 Product Features – Sensex Plan

Type of Scheme An open-ended scheme replicating/ tracking S&P BSE SENSEX Index Inception Date July 17, 2002 Fund Manager $ Mr. Krishan Kumar Daga (Since October 19, 2015) and Arun Agrawal (Since August 24, 2020) Investment Plans Regular Plan & Direct Plan Investment Options Each Plan offers Growth option only

Minimum Application Amount Purchase: Rs. 5,000 and any amount thereafter (Under Each Plan/Option) Additional Purchase: Rs. 1,000 and any amount thereafter

Total Expense Ratio Regular: 0.30% (As on Mar 31, 2021) Direct: 0.10% Tracking Error 0.08% (Annualised tracking error is calculated based on daily rolling returns for the last 12 months) (As on Mar 31, 2021)

For further details on load structure, please refer to the Scheme Information Document.

Benchmark S&P BSE SENSEX TR Index

For further details refer Scheme Information Document/Key Information Memorandum available on our website www.hdfcfund.com 13 Top 10 Stocks & Sectors – Sensex Plan

Name Of the Instrument Industry % to NAV Reliance Industries Ltd. Petroleum Products 12.01 HDFC Bank Ltd. Banks 11.29 Infosys Limited Software 9.29 Housing Development Fin. Corp. Ltd.£ Finance 8.35 ICICI Bank Ltd. Banks 7.45 Tata Consultancy Services Ltd. Software 6.10 Kotak Mahindra Bank Limited Banks 4.25 Hindustan Unilever Ltd. Consumer Non Durables 4.02 ITC Ltd. Consumer Non Durables 3.54 Axis Bank Ltd. Banks 3.41

 Opportunity to invest in a diversified portfolio of most liquid and Large cap companies representing the broad economy

 Minimize unsystematic risk(risk pertaining to companies, sectors etc) of an investor’s portfolio to a certain extent

 Less expensive as compared to actively managed funds – Lower transaction costs and expense ratio

 One of the most experienced fund management and research teams in the country with a track record of managing equity assets across market cycles

 One of the established index funds in category with a track record of over 16 years.

 Strong emphasis on timely and efficient replication of the benchmark index , so as to minimize the tracking error

HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending on the market conditions. 15 Scheme Performance Summary : HDFC Index Fund – NIFTY50 Plan

Value of Rs 10,000 invested

Additional Additional Scheme Returns Benchmark Benchmark Benchmark Scheme Benchmark (%) Returns (%) # (Rs)# Returns (%) ## (Rs)##

Last 1 year 71.54 72.54 69.82 17,154 17,254 16,982

Last 3 years 13.91 14.58 15.81 14,800 15,064 15,559

Last 5 years 14.48 15.12 15.73 19,669 20,228 20,773 Since inception 14.70 16.85 17.48 130,350 184,446 203,945 (July 17, 2002)

Past performance may or may not be sustained in the future. The above returns are of Regular plan - growth option. Returns greater than 1 year period are compounded annualized (CAGR). Since inception returns are calculated on Rs. 10.3260 (allotment price). Load is not taken into consideration for computation of performance. # Benchmark Index: NIFTY 50 (Total Returns Index), ## Additional Benchmark Index : S&P BSE Sensex (Total Returns Index). 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. Returns as Mar 31, 2021. The Scheme is managed by Krishan Kumar Daga since Oct 19, 2015 and Arun Agarwal since Aug 24, 2020. Returns greater than 1 year period are compounded annualized (CAGR). 16 SIP: Performance as on March 31, 2021 HDFC Index Fund – NIFTY50 Plan

Particulars 1 year 3 Years 5 Years 10 Years 15 Years Since Inception$

Total Amount Invested (` 1000 ) 120 360 600 1,200 1,800 2,250

Mkt Value As on Mar 31, 2021 (` 1000) 157 474 872 2,344 4,409 8,385

Returns (Annualised) (%) 61.70% 18.80% 14.96% 12.85% 11.10% 12.59% Benchmark Returns (Annualised) (%) # 62.50% 19.52% 15.60% 13.45% 12.18% 14.40%

Addl. Benchmark Ret. (Annualised) (%) ## 59.92% 19.75% 16.37% 13.85% 12.45% 14.90%

HDFC Index Fund – NIFTY50 Plan – Assuming Investment of `10,000 invested systematically on the first Business Day of every Month over a period of time.

Past performance may or may not be sustained in the future. Returns are XIRR. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. 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. The Scheme is managed by Krishan Kumar Daga since Oct 19, 2015 2015 and Arun Agarwal since Aug 24, 2020. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. # Benchmark Index: NIFTY 50 (Total Returns Index), ## Additional Benchmark Index : S&P BSE Sensex (Total Returns Index). $ Scheme Inception Date : October 19, 2015. Returns greater than 1 year period are compounded annualized (CAGR).

17 Scheme Performance Summary : HDFC Index Fund – Sensex Plan

Value of Rs 10,000 invested

Additional Additional Scheme Returns Benchmark Benchmark Benchmark Scheme Benchmark (%) Returns (%) # (Rs)# Returns (%) ## (Rs)##

Last 1 year 68.89 69.82 72.54 16,889 16,982 17,254

Last 3 years 15.12 15.81 14.58 15,279 15,559 15,064

Last 5 years 15.15 15.73 15.12 20,255 20,773 20,228 Since inception 15.03 17.48 16.85 137,494 203,945 184,446 (July 17, 2002)

Past performance may or may not be sustained in the future. The above returns are of Regular plan - growth option. Returns greater than 1 year period are compounded annualized (CAGR). Since inception returns are calculated on ` 32.1610 (allotment price). Load is not taken into consideration for computation of performance. # Benchmark Index S&P BSE Sensex (Total Returns Index), ## Additional Benchmark Index : NIFTY50 (Total Returns Index). 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. Returns as on Mar 31, 2021. The Scheme is managed by Krishan Kumar Daga since Oct 19, 2015 2015 and Arun Agarwal since Aug 24, 2020. Returns greater than 1 year period are compounded annualized (CAGR). 18 SIP: Performance as on March 31, 2021 HDFC Index Fund – Sensex Plan

Particulars 1 year 3 Years 5 Years 10 Years 15 Years Since Inception$

Total Amount Invested (` 1000 ) 120 360 600 1,200 1,800 2,250

Mkt Value As on March 31, 2021 (` 1000) 155 476 889 2,394 4,507 8,737

Returns (Annualised) (%) 59.12% 19.04% 15.72% 13.24% 11.36% 12.96% Benchmark Returns (Annualised) (%) # 59.92% 19.75% 16.37% 13.85% 12.45% 14.90%

Addl. Benchmark Ret. (Annualised) (%) ## 62.50% 19.52% 15.60% 13.45% 12.18% 14.40%

HDFC Index Fund – Sensex Plan – Assuming Investment of `10,000 invested systematically on the first Business Day of every Month over a period of time.

Past performance may or may not be sustained in the future. Returns are XIRR. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. 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. The Scheme is managed by Krishan Kumar Daga since Oct 19, 2015 2015 and Arun Agarwal since Aug 24, 2020. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. # Benchmark Index S&P BSE Sensex (Total Returns Index), ## Additional Benchmark Index : NIFTY50 (Total Returns Index). $ Scheme Inception Date : October 19, 2015. Returns greater than 1 year period are compounded annualized (CAGR).

19 Performance of Other Schemes managed by Krishan Kumar Daga & Arun Agarwal, Fund Manager of HDFC Index Fund - NIFTY 50 Plan & Sensex Plan

Performance Managing Scheme since Last 3 years Last 5 years Last 1 year (%) Scheme CAGR (in %) CAGR (in %) Krishan Kumar Daga manages 7 other schemes & Arun Agarwal manages 5 other schemes which have completed more than 1 year Performance of Top 3 schemes managed by Krishan Kumar Daga & Arun agarwal HDFC Equity Savings Fund ( Arbitrage Assets) $ January 08, 16 29.56 7.30 10.10 40% Nifty 50 Arbitrage Index + 30% CRISIL Short Term Bond Fund Index + 30% Nifty 50 TRI 22.25 9.18 9.20 HDFC Sensex ETF $ Dec 09, 15 69.46 15.71 15.64 S&P BSE Sensex TRI 69.82 15.81 15.73 HDFC Arbitrage Fund – Wholesale $ September 10, 15 3.10 4.85 5.31 NIFTY 50 Arbitrage Index 2.34 4.57 4.83 Performance of Bottom 3 schemes managed by Krishan Kumar Daga HDFC Gold Fund October 19, 15 -0.21 11.74 8.16 Domestic Prices of Physical Gold 0.41 12.50 8.67 HDFC Gold Exchange Fund October 19,15 0.03 11.43 7.57 Domestic Prices of Physical Gold 0.41 12.50 8.67 HDFC Multi - Asset Fund ( Krishan Daga -Gold Assets) & ( Arun Agarwal – Arbitrage Assets) May 23, 18 49.82 9.73 9.75 90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold 42.78 13.52 13.02 Performance of scheme co-managed by Arun Agarwal & Krishan Daga not forming of Top 3 & Bottom 3 Schemes HDFC NIFTY ETF $ Dec 09, 2015 72.35 14.39 14.91 NIFTY 50 TRI 72.54 14.58 15.12

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. 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/ Data as on Mar 31, 2021. 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 . Returns greater than 1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of above performance(s). $ Co-Managed with Krishan Kumar Daga since August 24, 2020 20 Disclaimer & Risk Factors

This presentation, dated 30th April 2021, has been prepared by HDFC Asset Management Company Limited (HDFC AMC) based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. 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. Past performance may or may not be sustained in future. Neither HDFC AMC and HDFC Mutual 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.