Vol. No. 9 Issue No. 7. January 2012

Transcription

1 Vol. No. 9 Issue No. 7 January 2012

2 Market Review - January 2012 Equity market update After an extremely challenging year, in which the Indian market was amongst the worst performing markets globally, 2012 started off on a positive note. For the month, the Sensex and Nifty were up 11.2% and 12.4% respectively led by capital goods, metals and banks. Midcap stocks outperformed and the CNX Midcap Index rose 16.2%. FII flows were positive at close to $1.5b and the Rupee appreciated by around 7.45%. Markets across the globe rallied during the month. In the US, the Dow and S&P 500 were up 3.6% while the NASDAQ rose 7.9%. Encouraging US economic data and the Fed s forecast of low rates till 2014 buoyed sentiment there. European markets also fared well with most markets up 2-5% with the exception of the German DAX, which was up more than 10%. At the same time, bond yields dropped across Europe as concerns on the credit crises saw some fatigue. The story was similar in Asia with markets up 4-10%. As risk appetite returned, commodities also staged a smart rally. Copper, aluminum, zinc and lead were up 11-16% while oil was up about 3.7%. In the near future, the market attention is likely to be on the upcoming state elections, the third quarter results and the Union Budget. Moreover, international developments, particularly in Europe, will also shape market sentiment. So far, results have been more or less in line with expectations but a clearer picture will emerge once more results have been announced. On the political front, we are hopeful that the pace of decision making will pick up post the elections regardless of the outcome. Despite strong economic growth and reasonable corporate performance in the last five years, the Sensex has hardly changed over that period. As a result valuations have come down sharply from a PE of 25x at the beginning of 2007 to 13x currently as compared to 10x at the bottom of early The 10-year average multiple for the Sensex is 15x. Thus, current valuations are below their long term average and for investors with a long term perspective and tolerance for volatility there lies an opportunity to capture not only earnings growth but also an improvement in valuations over time. Debt market update During the month of January 2012, the yield on 10-year Government benchmark bond ended lower at 8.28% as against 8.56% in December 2011 (source: Bloomberg). The average LAF during the month was negative ` 1,28,965 crs as compared to negative ` 1,15,430 crs in December The NSE overnight MIBOR ended at 8.39%, lower than the rate seen in end December (8.99%). The annual rate of inflation, based on monthly WPI, stood at 7.47% (Provisional) for the month of December 2011 as compared to 9.11% (Provisional) for the previous month and 9.45% during the corresponding month of the previous year. The INR appreciated to against the US dollar as compared to at the end of previous month, a rise of 7.45% for the month. The net FII investments in equities & debt was an inflow of USD million in January 2012 as compared to an inflow of USD million in December In the Third Quarter Monetary Policy Review of January 2012 RBI cut the cash reserve ratio (CRR) of banks by 50 bps to 5.5%, while maintaining all other policy rates. RBI has revised downward its GDP growth forecast for to 7% from 7.6%. It has kept its inflation forecast unchanged at 7% for end-march 2012 despite downward revision to growth on account of INR depreciation feeding into core and suppressed inflation in petroleum product and coal prices. More importantly, RBI has stated that the balance of the policy stance has shifted to growth. However, RBI has cautioned that in the absence of credible fiscal consolidation, it may be constrained from lowering the policy rates. The declining trend of inflation, slowing growth and expected fiscal consolidation in the forthcoming budget in March 2012, may lead RBI to begin the rate cutting cycle. The liquidity infusion measures and lower policy rates going forward may result in both long term and short-term yields falling over the next few months. 2 January 2012 Intouchmutually

3 Win-win, for all Car-pooling services are catching on in Indian cities T alk to office-goers, and it s obvious that one of their most stressful experiences is the twice-daily commute to and from office by car on congested big-city roads. And with the price of petrol being what it is, it s also a big drain on family budgets. That s why car-pooling services which involve the shared use of a car, usually for commuting, so that more than one person travels in a car have sprung up in a number of Indian cities. Car-pooling arrangements are most suitable for groups of office-goers or commuters who live nearby and have a common destination. They cut costs, particularly for those commuters who travel long distances from their residence to office every day. It is also a boon for individuals who have limited access to public and private transportation. At today s petrol prices, an office-goer who covers 60 km a day while commuting to office spends about ` 300 daily. Annual expenditure could amount to a mind-boggling ` 90,000 for covering 18,000 km. Carpooling can drastically reduce this spending and yield substantial savings. Car-pooling services on any major scale began in India in the early years of the last decade, but have taken off recently in half a dozen cities due to big increases in the price of petrol. In the US however, car-pooling first became prominent as a rationing tactic during World War II, and returned in the 1970s due to the oil crisis of that decade. Recently, the internet and mobile phones have further facilitated its growth in the US, as in India by enabling people to offer and find rides more easily, and easily contact each other to arrange them. Car-pooling has strict rules. Prospective users begin by registering with the service, which then conducts an identity verification process for security that includes a home visit and presentation of residential proof, driving license and citizenship ID. Prospective members also fill out a questionnaire with details about their regular travel habits and preferences in a travelling companion, including gender and whether or not they smoke. (No personal details are ever revealed to others sharing a car, and some services even have a women s club for all-female rides.) Members are then given a smart card with ID code, and a GPS device is installed in their car. Next, information about members routine trips such as daily commutes to work are fed into a computer for matching with members looking for rides; ride-seekers without cars of their own can become members only if referred by one who owns a car. Matches can be made for both routine and ad hoc trips; either way, each time a car-owning member provides a lift, the distance travelled (in km) is recorded by the GPS. These distances are translated into credits, which are added to the driver s smart card account and can later be used for free rides with another driver. Despite picking up in India s cities, carpooling nevertheless faces challenges. First is the effort to be flexible enough to accommodate en-route stops or changes to working times and patterns. To counter this, some schemes offer services with later running options, or a guaranteed ride home arrangement with a local taxi company. Second, if a car-pooling network lacks a critical mass of participants, it may be difficult to make certain trips. In addition, the parties may not necessarily turn up for the agreed-upon ride. Car-pooling schemes are addressing this concern by implementing systems for identifying irresponsible users. Car-pool service operators in India also lament that there are no incentives to encourage more people to turn to car-pooling. They point out that many Western countries, in an effort to reduce traffic and encourage car-pooling, have introduced high-occupancy vehicle lanes in which only vehicles with two or more passengers are allowed to drive. In some countries it is also common to find parking spaces that are reserved especially for car-poolers. Such practices, if introduced in India, could give a big boost to car-pooling and create a winwin situation for all. B S REPORTER This article is issued in general investor interest. Please refer Page No. 43 for disclaimer. Intouchmutually January

4 Features of our select schemes Nature of Scheme HDFC Growth Fund Open-ended Growth Scheme HDFC Equity Fund Open-ended Growth Scheme HDFC Top 200 Fund Open-ended Growth Scheme HDFC Capital Builder Fund Open-ended Growth Scheme HDFC Core & Satellite Open-ended Growth Scheme HDFC Premier Multi-Cap Fund Open-ended Growth Scheme HDFC Mid-Cap Opportunities Fund Open-ended Equity Scheme Investment Objective To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. To achieve capital appreciation. To generate long To achieve capital term capital appreciation in the appreciation from a long term. portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index. To generate capital To generate capital appreciation through appreciation in the equity investment in long term through companies whose equity investments shares are quoting by investing in a at prices below their diversified portfolio true value. of Mid Cap & Large Cap blue chip companies. To generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies Fund Manager Srinivas Rao Ravuri (since Apr 3, 06)# Prashant Jain (since Jun 19, 03)*# Prashant Jain (since Jun19, 03)*# Chirag Setalvad (since Apr 2, 07)# Vinay Kulkarni (since Nov 21, 06)# Vinay Kulkarni (since Nov 21, 06)# Chirag Setalvad (Since June 25, 07) # Inception Date (Date of Allotment) September 11, 2000 January 1, 1995 October 11, 1996 February 1, 1994 September 17, 2004 April 6, 2005 June 25, 2007 Entry / Sales Load Exit Load Not Applicable. Upfront 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% 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. No Entry / Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. Investment Plan / Options Growth & Dividend Growth & Dividend Growth & Dividend Growth & Dividend Growth & Dividend The Dividend Option offers Dividend Payout and Reinvestment facility. Growth & Dividend Growth and Dividend Minimum Application Amount (Under each Plan) Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Lock-in Period Net Asset Value (NAV) Redemption Proceeds Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 9 * Date of migration from Zurich India Mutual Fund # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) 4 January 2012 Intouchmutually

5 Features of our select schemes HDFC Long Term Equity Fund Open-ended Equity Scheme HDFC Infrastructure Fund HDFC Arbitrage Fund HDFC Index Fund Nature of Scheme Open-ended Equity Scheme Open ended Equity Fund Open-ended Index Linked Scheme Investment Objective To achieve long-term capital appreciation To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments. Nifty Plan : To generate returns that are commensurate with the performance of the Nifty, subject to tracking errors. SENSEX Plan : To generate returns that are commensurate with the performance of the SENSEX, subject to tracking errors. SENSEX Plus Plan : To invest 80 to 90% of the net assets of the Plan in companies whose securities are included in SENSEX and between 10% & 20% of the net assets in companies whose securities are not included in the SENSEX. Fund Manager Srinivas Rao Ravuri (Since February 10, 06) # Prashant Jain and Srinivas Rao Ravuri (Since March 10, 08) # Anil Bamboli (since Oct 23, 07)# Vinay Kulkarni (since Dec 29, 06) Inception Date (Date of Allotment) February 10, 2006 March 10, 2008 October 23, 2007 July 17, 2002 Entry / Sales Load Exit Load Not Applicable. Upfront 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% 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. Retail Plan & Wholesale Plan In respect of each purchase / switch-in of Units, an Exit Load of 0.50% is payable if units are redeemed / switched-out within 6 months from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 6 months year from the date of allotment. No Entry / Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. No Entry / Exit Load shall be levied on bonus units. Investment Plan / Options Growth and Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility. Wholesale Plan and Retail Plan Both Plan offers Growth and Dividend Option. Dividend Option offers Quarterly Dividend Option with Payout and Reinvestment Facility. Nifty Plan, SENSEX Plan and SENSEX Plus Plan At present, each Plan offers Growth Option only. Minimum Application Amount (Under each Plan) Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Wholesale Plan: Purchase / Additional Purchase : `1 Crore and any amount thereafter. Retail Plan: Purchase / Additional Purchase : `5,000 and any amount thereafter. Purchase : ` 5,000 and any amount thereafter. $ Additional Purchase : ` 1,000 and any amount thereafter. $ Lock-in Period Net Asset Value (NAV) Redemption Proceeds Normally despatched within 3-4 Business days Normally despatched within 3-4 Business days Normally despatched within 3-4 Business days. Normally despatched within 3-4 Business Days. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 9 # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) $ All applications for purchase of units including additional purchases for an amount of ` Five Lakhs and above will be accepted with payment mode only as Real Time Gross Settlement (RTGS) /National Electronic Funds Transfer (NEFT)/Funds Transfer Letter/ Transfer Cheque of a bank where the Scheme has a collection account. Any application for an amount of ` Five Lakhs and above with payment mode other than the above will be rejected. Intouchmutually January

6 Features of our select schemes Nature of Scheme HDFC Balanced Fund Open-ended Balanced Scheme HDFC Prudence Fund Open-ended Balanced Scheme HDFC Children s Gift Fund^@ Open-ended Balanced Scheme HDFC Long Term Advantage Fund Open-ended Equity Linked Savings Scheme with a lock-in period of 3 years HDFC TaxSaver Open-ended Equity Linked Savings Scheme with a lock-in period of 3 years Investment Objective Fund Managers Inception Date (Date of Allotment) To generate capital appreciation along with current income from a combined portfolio of equity & equity-related and debt & money market instruments. Chirag Setalvad (since April 2, 07)# September 11, 2000 To provide periodic returns and capital appreciation over a long period of time from a judicious mix of equity and debt investments with an aim to prevent / minimise any capital erosion. Prashant Jain (since Jun 19, 03)*# February 1, 1994 The primary objective of both the Plans viz. Investment Plan & Savings Plan under the Scheme is to generate long term capital appreciation. Chirag Setalvad (since April 2, 07)# March 2, 2001 To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity-related instruments. Chirag Setalvad (since April 2, 07)# January 2, 2001 To achieve long term growth of capital. Vinay Kulkarni (since Nov 21, 06)# March 31, 1996 Entry / Sales Load Exit Load Not Applicable. Upfront 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% 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 / switchedout after 1 year from the date of allotment. No Entry/Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. For Units subject to Lock-in Period: NIL For Units not subject to Lock-in Period: 3% if the Units are redeemed / switched-out within one year from the date of allotment; 2% if the Units are redeemed / switched-out between the first and second year of the date of allotment; 1% if Units are redeemed / switched-out between the second and third year of the date of allotment; if the Units are redeemed / switched -out after third year from the date of allotment. No Entry/Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. Investment Plan / Options Minimum Application Amount Lock-in Period Net Asset Value (NAV) Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility. Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. No Entry / Exit Load shall be levied on bonus units Investment Plan (Equity Oriented) Savings Plan (Debt Oriented) If opted : Until the Unit holder (being the beneficiary child) attains the age of 18 years or until completion of 3 years from date of allotment, whichever is later. Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility For Purchase & Additional Purchase : ` 500 and in multiples of ` 500 thereafter. 3 years from the date of allotment of the respective Units (including Units allotted under dividend reinvestment) 3 years from the date of allotment of the respective Units (including Units allotted under dividend reinvestment) Redemption Proceeds Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days (Redemption is subject to completion of Lock-in Period, if opted). Normally despatched within 3-4 Business Days (Redemption is subject to completion of Lock-in Period, if applicable). Normally despatched within 3-4 Business Days (Redemption is subject to completion of Lock-in Period, if applicable). ^ Eligibility (of Unit holder) : Children less than 18 years of age as on the date of investment by the Investor / Applicant are eligible as Unit holders in the Personal Accident Insurance Cover for Parent / Legal Guardian (upto the age of 80 years) of the Unit holder, equivalent to 10 times the cost value of the outstanding Units held by the Unit holder under all the applications / account statements / folios, subject to a maximum amount of ` 10 lakhs per Unit holder. The insurance premium in respect of the personal accident insurance cover will be borne by the AMC. This accident insurance cover is subject to conditions of the group personal accident insurance policy. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 9 * Date of migration from Zurich India Mutual Fund # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) 6 January 2012 Intouchmutually

7 Features of our select schemes HDFC MF Monthly Income Plan (HDFC MF MIP) HDFC Multiple Yield Fund HDFC Multiple Yield Fund Plan 2005 HDFC Income Fund Nature of Scheme An open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus Open-ended Income Scheme Open-ended Income Scheme Open-ended Income Scheme Investment Objective The primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme s assets in equity and equity related instruments. To generate positive returns over medium time frame with low risk of capital loss over medium time frame. To generate positive returns over medium time frame with low risk of capital loss over medium time frame. To optimise returns while maintaining a balance of safety, yield and liquidity. Fund Managers LTP Prashant Jain (Equities) (since Dec 26, 03), Shobhit Mehrotra (Debt) (since Sep 1, 07)#, STP Vinay Kulkarni (Equities) (since Nov 21, 06), Shobhit Mehrotra (Debt) (since Feb 16, 04)# Vinay Kulkarni (Equities), (since Nov 21, 06) Anil Bamboli (Debt) (since Sep 17, 04)# Chirag Setalvad (Equities), (since April 2, 07) Anil Bamboli (Debt) (since Aug 17, 05)# Shobhit Mehrotra (since Sep 1, 07)# Inception Date (Date of Allotment) December 26, 2003 September 17, 2004 August 17, 2005 September 11, 2000 Entry / Sales Load Exit Load Not Applicable. Upfront 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. For Short-Term Plan (STP) & Long-Term Plan (LTP) In respect of each purchase / switch-in of Units, an Exit Load of 1% 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% 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. In respect of each purchase / switch-in of Units, an Exit Load of 1% is payable if units are redeemed / switched-out within 15 months from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 15 months from the date of allotment. No Entry/Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. In respect of each purchase / switch-in of Units, an Exit Load of 0.5% is payable if units are redeemed / switched-out within 6 months from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 6 months from the date of allotment. Investment Plan / Options STP & LTP. Each Plan offers Growth, Monthly Dividend & Quarterly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment facility. Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility. Minimum Application Amount STP : Purchase : (Growth & Quarterly Dividend Option) ` 5,000 and any amount thereafter under each Option. (Monthly Dividend Option) ` 25,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. LTP : Purchase : (Growth & Quarterly Dividend Option) ` 5,000 and any amount thereafter under each Option. (Monthly Dividend Option) ` 25,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Lock-in Period Net Asset Value (NAV) Redemption Proceeds Normally despatched within 3-4 Business Days. Normally depatched within 3-4 Business Days. Normally depatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 9 # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) Intouchmutually January

8 Features of our select schemes HDFC High Interest Fund (HHIF) HDFC Short Term Plan (STP) HDFC Liquid Fund (HLF) HDFC Cash Management Fund Nature of Scheme Open-ended Income Scheme Open-ended Income Scheme Open-ended Liquid Income Scheme Savings & Call Plan: Open-ended High Liquidity Income Scheme. Treasury Advantage Plan: Open-ended Income Scheme. Investment Objective To generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximise income while maintaining the optimum balance of yield, safety and liquidity. Anil Bamboli (HHIF) (since Feb 16, 04)#, Shobhit Mehrotra STP (since Sep 1, 07)# To generate regular income through To enhance income consistent with a high investment in Debt Securities and Money level of liquidity, through a judicious portfolio Market Instruments. mix comprising of money market and debt instruments. Savings & Call Plan: To generate optimal returns while maintaining safety and high liquidity. Treasury Advantage Plan: To generate regular income through investment in debt securities and money market instruments. Fund Managers Anil Bamboli (since Jan 13, 04)# Shobhit Mehrotra (since Feb 16, 04)# Treasury Advantage Plan Anil Bamboli (since Sep 1, 07)# Call Plan Bharat Pareek (since May 23, 08)#, Savings Plan Bharat Pareek (w.e.f. Oct 1, 09)# Inception Date (Date of Allotment) HHIF : April 28, 1997 HHIF-STP : February 6, 2002 February 28, 2002 HLF : October 17, 2000 HLF Premium Plan & HLF Premium Plus Plan : February 24, 2003 Savings & Treasury Advantage Plan (Retail Option): November 18, 1999 Treasury Advantage Plan (Wholesale Option): April 23, 2007 Call Plan : February 6, 2002 Entry / Sales Load Exit Load Investment Plan / Options Not Applicable. Upfront 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. HHIF : In respect of each purchase / switch-in of Units, an Exit Load of 0.50% is payable if units are redeemed / switched-out within 3 months from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 3 months from the date of allotment. HHIF - STP : In respect of each purchase / switch-in of units, an Exit Load of 0.25% is payable if units are redeemed / switched-out within 1 month from the date of allotment. HHIF : Growth, Quarterly, Half Yearly and Yearly Dividend Options. HHIF-STP : Growth & Dividend Option All Dividend Options offer Dividend Payout and Reinvestment facility. In respect of each purchase / switch-in of Units, an Exit Load of 0.50% is payable if units are redeemed / switched-out within 6 months from the date of allotment. No Exit Load is payable if Units areredeemed / switched-out after 6 months from the date of allotment. Growth & Dividend (Dividend Option offers Payout and Reinvestment facility). No Entry/Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. HLF, HLF Premium Plan & HLF Premium Plus Plan. Each Plan offers Growth & Dividend Option. HLF The Dividend Option offers Daily Dividend Option (Reinvestment facility only) and Weekly and Monthly Dividend Option (with Payout and Reinvestment facility). HLF Premium Plan The Dividend Option offers Daily Dividend Option (with Reinvestment facility only) and Weekly Dividend Option (with Payout and Reinvestment facility). HLF Premium Plus Plan The Dividend Option offers Weekly Dividend Option (with Payout and Reinvestment facility). Savings, Treasury Advantage & Call Plan : Savings Plan & Call Plan : Growth Option & Daily Dividend Option (with Reinvestment facility only). Savings Plan also offers Weekly Dividend Option (with Payout and Reinvestment facility). Treasury Advantage Plan : (Retail and Wholesale Option) Growth and Dividend Option. Dividend Option offers Daily Dividend Option with Reinvestment facility only and Weekly and Monthly Dividend Option with Payout and Reinvestment facility. Minimum Application Amount (Under each Plan) Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. HLF : Purchase ` 10,000 and any amount thereafter; Additional Purchase ` 5,000 and any amount thereafter. HLF Premium Plan (Purchase) : ` 5,00,00,000 and any amount thereafter for opening an account / folio HLF Premium Plus Plan (Purchase) : ` 20,00,00,000 and any amount thereafter for opening an account / folio HLF Premium Plan & HLF Premium Plus Plan (Additional Purchase) : ` 1 and and any amount thereafter. Savings Plan & Call Plan : Purchase ` 10,000 and any amount thereafter; Additional Purchase ` 5,000 and any amount thereafter. Treasury Advantage Plan Retail Option Growth, Weekly and Monthly Dividend Option : Purchase ` 5,000 and any amount thereafter. Additional Purchase: ` 1,000 and any amount thereafter. Daily Dividend Option : Purchase ` 10,000 and any amount thereafter; Additional Purchase ` 5,000 and any amount thereafter. Treasury Advantage Plan Wholesale Option Purchase : ` 1 Crore and any amount thereafter. Additional Purchase : ` 1 and any amount thereafter. Lock-in Period All Year Round Net Asset Value (NAV) Savings & Call Plan: All Year Round Treasury Advantage Plan: Redemption Proceeds Normally despatched within 3-4 Business Days. Normally despatched within 3-4 Business Days. Normally despatched within 1 Business Day. Savings & Call Plan : Normally despatched within 1 Business Day. Treasury Advantage Plan: Normally despatched within 3-4 Business Days. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. For Tax Benefits / Consequences, Please refer to page 9 # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) 8 January 2012 Intouchmutually

9 Features of our select schemes Nature of Scheme Investment Objective Fund Manager Inception Date (Date of Allotment) HDFC Floating Rate Income Fund Open-ended Income Scheme. To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments. Shobhit Mehrotra (since Feb 16, 04)# Long Term Plan & Short Term Plan (Retail Option): January 16, 2003 Short Term Plan (Wholesale Option): October 23, 2007 HDFC Gilt Fund Open-ended Income Scheme. To generate credit risk-free returns through investments in sovereign securities issued by the Central Government and / or a State Government. Anil Bamboli (since Sep 1, 07) July 25, 2001 Entry / Sales Load Exit Load Investment Plan / Options Not Applicable. Upfront 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. Short Term Plan : Long Term Plan : In respect of each purchase / switch-in of Units, an Exit Load of 2% is payable if units are redeemed / switched-out within 12 months from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 12 months from the date of allotment. Short Term Plan : For investors who wish to invest for short time period. Long Term Plan : For investors who wish to invest for relatively longer time period. Short Term Plan Wholesale & Retail Option : Growth and Dividend Option. The Dividend Option offers Daily Dividend Option (with Reinvestment facility only) and Weekly and Monthly Dividend Option (with Payout and Reinvestment facility). Long Term Plan : Growth and Weekly Dividend Option (with Reinvestment facility only). Short Term Plan : Long Term Plan : 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 months from the date of allotment. No exit load is payable if units are redeemed / switched - out after 3 months from the date of allotment. No Entry / Exit Load shall be levied on bonus units and units allotted on dividend reinvestment. Short Term Plan : For investors who wish to invest for short time period. Long Term Plan : For investors who wish to invest for relatively longer time period. Each Plan offers Growth and Dividend Options. The Dividend Option offers Dividend Payout and Reinvestment facility. Minimum Application Amount Lock-in Period Net Asset Value (NAV) Redemption Proceeds Short Term Plan Retail Option : (Growth Option, Weekly Dividend Option & Monthly Dividend Option) Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. (Daily Dividend Option) Purchase ` 10,000 and any amount thereafter; Additional Purchase ` 5,000 and any amount thereafter. Short Term Plan Wholesale Option : (Growth Option, Daily Dividend Option, Weekly Dividend Option & Monthly Dividend Option) Purchase : ` 10 lakh and any amount thereafter. Additional Purchase : ` 1 and and any amount thereafter. Long Term Plan : For Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Normally despatched within 3-4 Business Days. (Under each Plan / Option) Purchase : ` 5,000 and any amount thereafter. Additional Purchase : ` 1,000 and any amount thereafter. Normally despatched within 3-4 Business Days. Investors are advised to consult their tax advisors with respect to the tax consequences of the purchase, ownership and disposal of mutual fund units. # Miten Lathia (Dedicated Fund Manager for Overseas Investments since August 5, 2010) Tax Benefits / Consequences : Income distributed by the Scheme (s) are free from Income tax in the hands of Investors. With effect from June 1, 2011, the additional income-tax on distribution of income by a money market mutual fund or a liquid fund to an individual / HUF shall be payable by the mutual fund at the rate of %* and at the rate of %* on distribution of income to any other investor. The additional income-tax on distribution of income by any other fund to an individual/ HUF shall be payable at the rate of %* and at the rate of %* on distribution of income to any other investor. Units of the Scheme(s) are not subject to Wealth-tax and Gift-tax. Unit holders are required to pay Securities Transaction Tax (STT) at the rate of 0.25% at the time of redemption / switch-out of units of an equity-oriented fund. * including applicable surcharge, education cess and secondary and higher education cess Gift of Units : With effect from , as per the provisions of section 56(2)(vii) of the Income-tax Act, 1961, certain specified property transferred, without consideration / adequate consideration, exceeding specified limits, are taxable in the hands of the recipient individual / HUF (subject to certain exceptions). The term property includes shares and securities. Units of a mutual fund could fall within the purview of the term securities. As per the Act, property would refer to capital assets only. Investors should be aware that the fiscal rules / tax laws may change and there can be no guarantee that the current tax position may continue indefinitely. In view of individual nature of tax consequences, each investor is advised to consult his / her own professional tax advisor. Fund Manager Total Experience Fund Manager Total Experience Prashant Jain Over 20 years Shobhit Mehrotra Over 18 years Vinay Kulkarni Over 22 years Anil Bamboli Over 16 years Srinivas Rao Ravuri Over 16 years Miten Lathia Over 11 years Chirag Setalvad Over 14 years Bharat Pareek Over 10 years Intouchmutually January

10 HDFC Growth Fund EQUITY - MULTI CAP CATEGORY (37 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended growth scheme HDFC Equity Fund EQUITY - MULTI CAP CATEGORY (37 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended growth scheme Growth Option Dividend Option Growth Option Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED Infosys Ltd. Software 8.23 ICICI Bank Ltd. Banks 6.62 Reliance Industries Ltd. Petroleum Products 6.31 ITC Ltd. Consumer Non Durables 5.96 Solar Industries India Ltd. Chemicals 5.66 Housing Development Finance Corporation Ltd. $ Finance 4.41 State Bank of India Banks 4.29 Bharat Petroleum Corporation Ltd. Petroleum Products 4.05 Divi s Laboratories Ltd. Pharmaceuticals 3.97 Bharti Airtel Ltd. Telecom - Services 3.90 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 4.39 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 122, Company Industry + % to NAV EQUITY & EQUITY RELATED State Bank of India Banks 8.54 ICICI Bank Ltd. Banks 5.82 Infosys Ltd. Software 5.41 Tata Consultancy Services Ltd. Software 4.52 Bharti Airtel Ltd. Telecom - Services 4.08 Reliance Industries Ltd. Petroleum Products 3.81 Tata Motors Ltd. DVR Auto 3.70 Bank of Baroda Banks 3.02 Tata Steel Ltd. Ferrous Metals 2.71 Crompton Greaves Ltd. Industrial Capital Goods 2.41 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 0.94 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 917, Portfolio Turnover Ratio (Last 1 Year) 35.03% + Industry Classification as recommended by AMFI, $ Sponsor Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Portfolio Turnover Ratio (Last 1 Year) 27.76% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Industry Allocation of Equity Holding (% of Net Assets) Banks Petroleum Products Software 9.43 Industrial Capital Goods 8.29 Pharmaceuticals 7.97 Consumer Non Durables 6.62 Chemicals 5.66 Oil 4.76 Construction 4.68 Finance 4.41 Telecom - Services 3.90 Auto 2.69 Textiles - Synthetic 1.94 Ferrous Metals 1.83 Power 1.79 Fertilisers 1.64 Gas 1.37 Media & Entertainment 1.17 Auto Ancillaries 1.13 Transportation 0.80 Paper 0.72 Minerals/Mining 0.51 Construction Project 0.37 Industry Allocation of Equity Holding (% of Net Assets) Banks Software Petroleum Products 8.24 Pharmaceuticals 6.47 Consumer Non Durables 5.33 Industrial Capital Goods 4.68 Finance 4.65 Telecom - Services 4.08 Media & Entertainment 4.03 Oil 3.88 Auto 3.70 Ferrous Metals 2.99 Power 2.73 Construction 2.43 Auto Ancillaries 2.16 Non - Ferrous Metals 2.03 Gas 2.01 Minerals/Mining 1.96 Hardware 1.80 Transportation 1.52 Textile Products 1.19 Industrial Products 1.02 Consumer Durables 0.68 Construction Project 0.54 Textiles - Synthetic 0.11 Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.30% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 8.40% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) 10 January 2012 Intouchmutually

11 HDFC Top 200 Fund EQUITY - LARGE & MID CAP CATEGORY (56 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended growth scheme HDFC Capital Builder Fund EQUITY - MULTI CAP CATEGORY (37 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended growth scheme Growth Option Dividend Option Growth Option Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED State Bank of India Banks 7.63 ICICI Bank Ltd. Banks 5.93 Infosys Ltd. Software 5.61 ITC Ltd. Consumer Non Durables 4.73 Reliance Industries Ltd. Petroleum Products 4.40 Tata Consultancy Services Ltd. Software 3.75 HDFC Bank Ltd. Banks 3.62 Bharti Airtel Ltd. Telecom - Services 3.56 Tata Motors Ltd. DVR Auto 3.38 Bank of Baroda Banks 2.91 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 0.62 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 1,053, Company Industry + / Rating % to NAV EQUITY & EQUITY RELATED IPCA Laboratories Ltd. Pharmaceuticals 6.03 Tata Consultancy Services Ltd. Software 5.93 Reliance Industries Ltd. Petroleum Products 5.82 State Bank of India Banks 5.79 Infosys Ltd. Software 5.75 Bank of Baroda Banks 5.53 Dr. Reddy s Laboratories Ltd. Pharmaceuticals 4.95 ITC Ltd. Consumer Non Durables 4.27 Bharat Petroleum Corporation Ltd. Petroleum Products 3.88 Bharti Airtel Ltd. Telecom - Services 3.83 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings CREDIT EXPOSURE Britannia Industries Ltd. CRISIL - AAA 0.24 Total Credit Exposure Holdings 0.24 Cash, Cash Equivalents and Net Current Assets 5.89 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 47, Portfolio Turnover Ratio (Last 1 Year) 16.86% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Portfolio Turnover Ratio (Last 1 Year) 7.69% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Industry Allocation of Equity Holding (% of Net Assets) Banks Software Consumer Non Durables 9.27 Petroleum Products 7.19 Pharmaceuticals 6.93 Ferrous Metals 4.56 Oil 4.35 Finance 4.19 Auto 4.07 Telecom - Services 3.56 Power 3.47 Industrial Capital Goods 2.55 Non - Ferrous Metals 2.46 Construction Project 2.21 Gas 1.91 Minerals/Mining 1.88 Construction 1.69 Media & Entertainment 1.67 Transportation 1.30 Hardware 0.38 Cement 0.30 Industry Allocation of Equity Holding (% of Net Assets) Banks Pharmaceuticals Software Consumer Non Durables Petroleum Products 9.70 Auto 4.08 Telecom - Services 3.83 Auto Ancillaries 3.20 Chemicals 2.38 Oil 2.33 Industrial Capital Goods 2.18 Media & Entertainment 2.14 Consumer Durables 1.74 Finance 1.33 Power 0.82 Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.80% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 6.70% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Intouchmutually January

12 HDFC Core & Satellite Fund An open-ended growth scheme HDFC Premier Multi-Cap Fund An open-ended growth scheme Growth Option Dividend Option Growth Option Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED Tata Consultancy Services Ltd. Software 8.65 Infosys Ltd. Software 7.92 Cipla Ltd. Pharmaceuticals 6.57 Bank of Baroda Banks 6.30 NTPC Ltd. Power 4.68 Sadbhav Engineering Ltd. Construction Project 4.38 Emami Ltd. Consumer Non Durables 4.30 Bharat Electronics Ltd. Industrial Capital Goods 4.08 Sundram Fasteners Ltd. Auto Ancillaries 3.75 ITC Ltd. Consumer Non Durables 3.53 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 8.97 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 34, Company Industry + % to NAV EQUITY & EQUITY RELATED Tata Consultancy Services Ltd. Software 8.45 Infosys Ltd. Software 6.29 Emami Ltd. Consumer Non Durables 6.22 Bharti Airtel Ltd. Telecom - Services 5.46 ICICI Bank Ltd. Banks 4.49 SKF India Ltd. Industrial Products 4.16 Petronet LNG Ltd. Gas 4.10 Container Corporation of India Ltd. Transportation 3.63 Jagran Prakashan Ltd. Media & Entertainment 3.54 HT Media Ltd. Media & Entertainment 3.27 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 7.01 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 40, Portfolio Turnover Ratio (Last 1 Year) 38.89% + Industry Classification as recommended by AMFI Portfolio Turnover Ratio (Last 1 Year) 16.06% + Industry Classification as recommended by AMFI Segmentwise Break-up of Equity Holding (% of Net Assets) Large-Cap Mid-Cap Industry Allocation of Equity Holding (% of Net Assets) Software Industrial Products 2.27 Power Media & Entertainment 2.05 Consumer Non Durables Paper 2.01 Banks 9.52 Fertilisers 1.88 Pharmaceuticals 7.84 Consumer Durables 1.41 Industrial Capital Goods 7.50 Textiles - Synthetic 1.41 Construction Project 4.38 Chemicals 0.98 Auto Ancillaries 3.75 Construction 0.92 Petroleum Products 3.30 Transportation 0.83 Oil 3.04 Engineering Services 0.52 Industry Allocation of Equity Holding (% of Net Assets) Software Power 2.98 Consumer Non Durables Chemicals 2.81 Banks 9.18 Hardware 2.51 Gas 7.47 Oil 1.70 Media & Entertainment 6.81 Minerals/Mining 1.63 Telecom - Services 5.46 Paper 1.45 Industrial Products 4.16 Consumer Durables 1.30 Transportation 3.69 Auto Ancillaries 1.25 Industrial Capital Goods 3.62 Finance 1.02 Auto 3.17 Pharmaceuticals 0.99 Petroleum Products 3.00 Fertilisers 0.93 Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.90% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.80% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) 12 January 2012 Intouchmutually

13 HDFC Mid-Cap Opportunities Fund EQUITY - MID & SMALL CAP CATEGORY (49 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended equity scheme HDFC Long Term Equity Fund An open-ended equity scheme Growth Option Dividend Option Growth Option Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED Carborundum Universal Ltd. Industrial Products 4.25 IPCA Laboratories Ltd. Pharmaceuticals 3.73 Allahabad Bank Banks 3.24 Bank of Baroda Banks 3.22 Bata India Ltd. Consumer Non Durables 3.03 Indian Bank Banks 2.92 eclerx Services Ltd. Software 2.73 Solar Industries India Ltd. Chemicals 2.55 Lupin Ltd. Pharmaceuticals 2.54 Jaiprakash Associates Ltd. Construction 2.31 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash margin / Earmarked cash for Futures & Options 1.16 Other Cash, Cash Equivalents and Net Current Assets 6.46 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 170, Company Industry + % to NAV EQUITY & EQUITY RELATED ICICI Bank Ltd. Banks 8.80 Infosys Ltd. Software 7.87 State Bank of India Banks 7.17 ITC Ltd. Consumer Non Durables 6.36 Reliance Industries Ltd. Petroleum Products 6.36 Bharat Petroleum Corporation Ltd. Petroleum Products 4.73 Cipla Ltd. Pharmaceuticals 4.43 Bharti Airtel Ltd. Telecom - Services 4.04 Sadbhav Engineering Ltd. Construction Project 3.78 GAIL (India) Ltd. Gas 2.89 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 3.11 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 59, Portfolio Turnover Ratio (Last 1 Year) 14.94% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Total outstanding position (as at Jan 31,2012) in Derivative Instruments (Long Axis Bank Ltd. NSE Stock Futures Feb 2012 (Gross Notional) ` 2, lakhs. Portfolio Turnover Ratio (Last 1 Year) 48.76% + Industry Classification as recommended by AMFI Segmentwise Break-up of Equity Holding (% of Net Assets) Mid-Cap Small-Cap 5.70 Industry Allocation of Equity Holding (% of Net Assets) Banks Industrial Products Pharmaceuticals Consumer Non Durables 8.05 Software 5.91 Auto Ancillaries 5.48 Construction 4.15 Chemicals 3.60 Media & Entertainment 2.99 Industrial Capital Goods 2.82 Petroleum Products 2.31 Consumer Durables 2.14 Fertilisers 1.66 Finance 1.47 Oil 1.13 Pesticides 0.85 Construction Project 0.65 Power 0.44 Textile Products 0.36 Ferrous Metals 0.22 Industry Allocation of Equity Holding (% of Net Assets) Banks Petroleum Products Software 7.87 Pharmaceuticals 7.84 Construction Project 6.56 Consumer Non Durables 6.36 Construction 5.72 Oil 5.52 Power 5.35 Telecom - Services 4.04 Ferrous Metals 3.14 Gas 2.89 Auto 2.83 Minerals/Mining 2.44 Media & Entertainment 2.19 Industrial Capital Goods 1.98 Transportation 1.95 Cement 1.71 Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.20% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 7.40% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Intouchmutually January

14 HDFC Infrastructure Fund EQUITY - INFRASTRUCTURE (18 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended equity scheme HDFC Arbitrage Fund RETAIL & WHOLESALE PLAN HYBRID - ARBITRAGE CATEGORY (14 schemes) for 18 month period ending January 31, 2012 An open-ended equity fund Growth Option Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED Bank of Baroda Banks 9.17 State Bank of India Banks 8.80 ICICI Bank Ltd. Banks 8.04 Federal Bank Ltd. Banks 5.35 Bharat Petroleum Corporation Ltd. Petroleum Products 5.29 Sadbhav Engineering Ltd. Construction Project 4.75 Punjab National Bank Banks 4.42 Oil & Natural Gas Corporation Ltd. Oil 4.20 Tata Motors Ltd. DVR Auto 3.96 Coal India Ltd. Minerals/Mining 3.69 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 1.47 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 73, Retail Plan Growth Option Dividend Option Quarterly Dividend Option Wholesale Plan Growth Option Dividend Option Quarterly Dividend Option Company Industry + % to NAV EQUITY & EQUITY RELATED (Quantity fully hedged using futures / options) Unitech Ltd. Construction 7.69 Pantaloon Retail (India) Ltd. Retailing 7.54 Cipla Ltd. Pharmaceuticals 7.53 Dr. Reddy s Laboratories Ltd. Pharmaceuticals 7.24 JSW Steel Ltd. Ferrous Metals 5.18 Sterlite Industries (India) Ltd. Non - Ferrous Metals 5.04 Tata Global Beverages Ltd. Consumer Non Durables 3.75 Reliance Capital Ltd. Finance 3.50 Reliance Communications Ltd. Telecom - Services 3.34 Tata Teleservices (Maharashtra) Ltd. Telecom - Services 3.13 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Short Term Deposits as margin for Futures & Options Other Cash, Cash Equivalents and Net Current Assets (1.81) Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 5, Portfolio Turnover Ratio (Last 1 Year) 40.73% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Industry Allocation of Equity Holding (% of Net Assets) Banks Construction Project Power 9.17 Construction 5.59 Petroleum Products 5.29 Media & Entertainment 4.82 Industrial Capital Goods 4.76 Oil 4.20 Auto 3.96 Minerals/Mining 3.69 Auto Ancillaries 2.23 Gas 2.20 Consumer Durables 1.27 Transportation 1.02 Non - Ferrous Metals 0.78 Std Deviation Beta Sharpe Ratio* Risk Ratio (for the 3-yr period ended January 31, 2012) 9.90% Monthly Figure Source : CRISIL Fund Analyser * Risk-free rate assumed to be 8.48% (364-day Treasury Bill yield on ) Portfolio Turnover Ratio (Last 1 Year) % + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Industry Allocation of Equity Holding (% of Net Assets) Pharmaceuticals Construction 7.81 Retailing 7.54 Consumer Non Durables 7.02 Ferrous Metals 6.52 Telecom - Services 6.47 Non - Ferrous Metals 5.98 Finance 3.82 Power 3.65 Chemicals 2.59 Minerals/Mining 2.15 Cement 2.11 Petroleum Products 1.54 Transportation January 2012 Intouchmutually

15 HDFC Index Fund An open-ended index linked scheme HDFC Index Fund An open-ended index linked scheme SENSEX Plan (Face Value per Unit: ` ) NIFTY Plan (Face Value per Unit: ` ) Growth Option Growth Option Company Industry + % to NAV EQUITY & EQUITY RELATED Reliance Industries Ltd. Petroleum Products Infosys Ltd. Software 9.36 ITC Ltd. Consumer Non Durables 7.82 ICICI Bank Ltd. Banks 7.25 Housing Development Finance Corporation Ltd. $ Finance 6.77 HDFC Bank Ltd. Banks 6.41 Larsen & Toubro Ltd. Construction Project 5.08 Tata Consultancy Services Ltd. Software 4.69 State Bank of India Banks 4.16 Bharti Airtel Ltd. Telecom - Services 3.47 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 0.11 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 4, Company Industry + % to NAV EQUITY & EQUITY RELATED Reliance Industries Ltd. Petroleum Products 7.48 Infosys Ltd. Software 7.14 ITC Ltd. Consumer Non Durables 5.83 ICICI Bank Ltd. Banks 5.60 Housing Development Finance Corporation Ltd. $ Finance 4.94 HDFC Bank Ltd. Banks 4.70 Larsen & Toubro Ltd. Construction Project 3.78 Tata Consultancy Services Ltd. Software 3.13 State Bank of India Banks 2.89 Bharti Airtel Ltd. Telecom - Services 2.38 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash margin / Earmarked cash for Futures & Options 1.60 Other Cash, Cash Equivalents and Net Current Assets Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 8, Portfolio Turnover Ratio (Last 1 Year) % + Industry Classification as recommended by AMFI, $ Sponsor Portfolio Turnover Ratio (Last 1 Year) % + Industry Classification as recommended by AMFI, $ Sponsor Total outstanding position (as at Jan 31,2012) in Derivative Instruments (Long NIFTY NSE Index Futures Feb 2012 (Gross Notional) ` lakhs. Industry Allocation of Equity Holding (% of Net Assets) Banks Oil 3.32 Software Power 3.21 Consumer Non Durables Pharmaceuticals 2.85 Petroleum Products Non - Ferrous Metals 2.64 Auto 9.62 Industrial Capital Goods 1.53 Finance 6.77 Minerals/Mining 1.40 Construction Project 5.08 Gas 1.04 Ferrous Metals 3.72 Construction 0.67 Telecom - Services 3.47 Industry Allocation of Equity Holding (% of Net Assets) Banks Ferrous Metals 3.08 Software Telecom - Services 2.74 Consumer Non Durables 7.94 Oil 2.74 Petroleum Products 7.88 Cement 2.24 Auto 6.95 Non - Ferrous Metals 1.93 Finance 5.76 Minerals/Mining 1.54 Construction Project 3.78 Industrial Capital Goods 1.44 Pharmaceuticals 3.62 Gas 0.91 Power 3.59 Construction 0.86 Tracking Error Since Inception (Annualised) 3.13% Tracking Error Since Inception (Annualised) 2.86% Intouchmutually January

16 HDFC Index Fund EQUITY - LARGE CAP CATEGORY (48 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended index linked scheme HDFC Gold Exchange Traded Fund An open-ended Exchange Traded Fund SENSEX Plus Plan (Face Value per Unit: ` ) Growth Option Company Industry + % to NAV EQUITY & EQUITY RELATED Infosys Ltd. Software 8.57 Reliance Industries Ltd. Petroleum Products 8.24 ITC Ltd. Consumer Non Durables 7.16 ICICI Bank Ltd. Banks 6.55 Housing Development Finance Corporation Ltd. $ Finance 6.17 HDFC Bank Ltd. Banks 5.57 Larsen & Toubro Ltd. Construction Project 4.46 Tata Consultancy Services Ltd. Software 4.16 State Bank of India Banks 4.13 Oil & Natural Gas Corporation Ltd. Oil 3.28 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings Cash, Cash Equivalents and Net Current Assets 1.28 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 7, (Face Value per unit: ` 100) HDFC Gold Exchange Traded Fund Portfolio (as at January 31, 2012) % to NAV Gold 995 (Fineness) 1 Kg Bars Cash, Cash Equivalents and Net Current Assets 0.17 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 48, Scheme Details HDFC Gold Exchange Traded Fund Nature of Scheme An Open-ended Exchange Traded Fund Portfolio Turnover Ratio (Last 1 Year) 20.30% + Industry Classification as recommended by AMFI, $ Sponsor Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Investment Objective Fund Manager & Experience Date of Allotment / Inception Benchmark Entry Load The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors. Anil Bamboli. Managing this Scheme since inception. Total experience - over 16 years August 13, 2010 Domestic Price of Physical Gold. Not Applicable. Upfront 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. Industry Allocation of Equity Holding (% of Net Assets) Banks Telecom - Services 3.07 Software Power 2.86 Consumer Non Durables Non - Ferrous Metals 2.33 Auto 8.61 Chemicals 1.56 Petroleum Products 8.24 Industrial Capital Goods 1.43 Finance 6.17 Minerals/Mining 1.39 Construction Project 4.46 Gas 1.30 Pharmaceuticals 4.00 Industrial Products 0.70 Ferrous Metals 3.58 Construction 0.59 Oil 3.28 Cement 0.09 Exit Load Listing Minimum Transaction Amount Pricing (per unit) For Creation Unit Size: No Exit load will be levied on redemptions made by Authorised Participants / Large Investors directly with the Fund in Creation Unit Size. For other than Creation Unit Size: Not Applicable. The Units of HGETF in other than Creation Unit Size cannot be directly redeemed with the Fund. These Units can be redeemed (sold) on a continuous basis on the NSE and BSE during the trading hours on all trading days. National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE). Directly with the Fund Subscription / Redemption in exchange of Portfolio Deposit and Cash Component in creation unit size of 1,000 units and in multiples thereafter. $ On the Exchange 1 unit and in multiples of 1 unit thereafter. Approximately equal to 1 (one) gram of Gold Tracking Error 2.35% (since inception) - Annualised $ For Large Investors, subscriptions shall only be allowed by payment of requisite Cash through RTGS/NEFT or Funds Transfer Letter/ Transfer Cheque of a bank where the Scheme has a collection account. 16 January 2012 Intouchmutually

17 HDFC Balanced Fund HYBRID EQUITY - ORIENTED CATEGORY (23 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended balanced scheme HDFC Prudence Fund HYBRID EQUITY - ORIENTED CATEGORY (23 schemes) for 3 and 5 year periods ending January 31, 2012 An open-ended balanced scheme Growth Option Dividend Option Growth Option Dividend Option Company / Issuer Industry + / Rating % to NAV EQUITY & EQUITY RELATED Reliance Industries Ltd. Petroleum Products 3.27 Tata Consultancy Services Ltd. Software 2.78 ICICI Bank Ltd. Banks 2.63 Infosys Ltd. Software 2.50 Axis Bank Ltd. Banks 2.35 State Bank of India Banks 2.25 Carborundum Universal Ltd. Industrial Products 2.03 Tata Motors Ltd. DVR Auto 1.83 Allahabad Bank Banks 1.79 eclerx Services Ltd. Software 1.77 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings G-SEC, CD/CP, CREDIT EXPOSURE State Bank of Patiala CRISIL - A Tata Motors Ltd. (Guaranteed by SBI) CRISIL - AAA(SO) 3.16 Government Securities Sovereign 3.11 LIC Housing Finance Ltd. CRISIL - AAA 2.89 Cholamandalam Investment and Finance Co Ltd. ICRA - A Bajaj Finance Ltd. ICRA - AA Shriram Transport Finance Co. Ltd. CARE - AA+(SO) 0.55 Housing Development Finance Corporation Ltd. $ CRISIL - AAA 0.55 State Bank of India CRISIL - AAA 0.47 Bajaj Auto Ltd. CRISIL - AAA(SO) 0.16 Total of Top Ten G-Sec, CD/CP, Credit Exposure Total G-Sec, CD/CP, Credit Exposure (aggregated holdings in a single issuer) Cash, Cash Equivalents and Net Current Assets Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 50, Company / Issuer Industry + / Rating % to NAV EQUITY & EQUITY RELATED State Bank of India Banks 4.34 ICICI Bank Ltd. Banks 3.99 Infosys Ltd. Software 3.51 Page Industries Ltd. Textile Products 3.00 Tata Consultancy Services Ltd. Software 2.78 Tata Motors Ltd. DVR Auto 2.58 Bank of Baroda Banks 2.39 Tata Steel Ltd. Ferrous Metals 2.35 Bharti Airtel Ltd. Telecom - Services 2.32 Canara Bank Banks 1.58 Total of Top Ten Equity & Equity Related Holdings Total Equity & Equity Related Holdings G-SEC, CREDIT EXPOSURE Government Securities Sovereign National Bank for Agriculture & Rural Development CRISIL - AAA 2.19 State Bank of India CRISIL - AAA 1.84 Indian Railway Finance Corporation Ltd. CRISIL - AAA 1.67 LIC Housing Finance Ltd. CRISIL - AAA 1.59 Power Finance Corporation Ltd. CRISIL - AAA 0.90 Tata Power Co. Ltd. CRISIL - AA 0.85 Rural Electrification Corporation Ltd. CRISIL - AAA 0.47 Punjab National Bank CRISIL - AAA 0.34 State Bank of Indore CRISIL - AAA 0.25 Total of Top Ten G-Sec, Credit Exposure Total G-Sec, Credit Exposure (aggregated holdings in a single issuer) Short Term Deposits as margin for Futures & Options 0.80 Other Cash, Cash Equivalents and Net Current Assets 2.84 Average AUM for the quarter ended December 31, 2011 (` In Lakhs) 610, Portfolio Turnover Ratio (Last 1 Year) 10.58% + Industry Classification as recommended by AMFI, $ Sponsor Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Portfolio Turnover Ratio (Last 1 Year) 30.63% + Industry Classification as recommended by AMFI Past performance is no guarantee of future results. Please refer to page no 43 for details on the Rating Methodology Industry Allocation of Equity Holding (% of Net Assets) Industry Allocation of Equity Holding (% of Net Assets) Banks Construction 1.72 Banks Auto 1.83 Software 8.20 Finance 1.71 Pharmaceuticals 5.57 Chemicals 1.50 Software 9.64 Fertilisers 1.72 Consumer Non Durables 5.27 Power 1.10 Pharmaceuticals 6.87 Ferrous Metals 1.64 Textile Products 4.65 Minerals/Mining 1.04 Consumer Non Durables 5.67 Minerals/Mining 1.64 Industrial Products 3.39 Transportation 1.00 Industrial Products 5.21 Media & Entertainment 1.23 Petroleum Products 3.25 Paper 1.00 Media & Entertainment 3.06 Consumer Durables 0.65 Auto Ancillaries 4.57 Telecom - Services 1.20 Ferrous Metals 2.95 Non - Ferrous Metals 0.62 Petroleum Products 4.31 Chemicals 1.15 Auto 2.58 Cement 0.45 Oil 2.35 Retailing 0.12 Industrial Capital Goods 3.69 Power 1.15 Telecom - Services 2.32 Pesticides 0.07 Construction 2.09 Consumer Durables 0.88 Industrial Capital Goods 1.97 Textiles - Synthetic 0.07 Construction Project 1.99 Finance 0.28 Auto Ancillaries 1.87 Intouchmutually January