HDFC Mid-Cap Opportunities Fund An open ended equity scheme predominantly investing in mid cap stocks

Transcription

1 HDFC id-cap Opportunities Fund An open ended equity scheme predominantly investing in mid cap stocks THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOETER to generate long-term capital appreciation / income investments predominantly in id-cap companies oderately Low oderate oderately High Low High LOW Investors understand that their principal will be at moderately high risk HIGH *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Sponsors : Housing Development Finance Corporation Limited Registered Office : Ramon House, H. T. Parekh arg, 169, Backbay Reclamation, Churchgate, umbai Standard Life Investments Limited Registered Office : 1 George Street, Edinburgh, EH2 2LL United Kingdom. Asset anagement Company : HDFC Asset anagement Company Limited A Joint Venture with Standard Life Investments Registered Office : HDFC House, 2nd Floor, H.T. Parekh arg, , Backbay Reclamation, Churchgate, umbai CIN: U65991H1999PLC12027 Trustee : HDFC Trustee Company Limited Registered Office : HDFC House, 2nd Floor, H.T. Parekh arg, , Backbay Reclamation, Churchgate, umbai CIN: U65991H1999PLC12026 This Key Information emorandum (KI) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme / utual Fund, due diligence certificate by the AC, Key Personnel, investors' rights & services, risk factors, penalties & pending litigations, etc. investors should, before investment, refer to the Scheme Information Document(s) (SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centres or distributors or from the website The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (utual Funds) Regulations, 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KI. The date of this Key Information emorandum is ay 2, 2018.

2 TABLE OF CONTENTS Page No. Scheme Details Application Form Instructions to Application Form FATCA, CRS & Ultimate Beneficial Ownership (UBO) Self Certification Form For Non-individuals Aadhaar Updation Form for Non-Individuals Third Party Payment Declaration Form Application Form for SIP/ Flex SIP [(For Investments through NACH/ ECS (Debit Clearing) / Direct Debit Facility / Standing Instruction)] Systematic Withdrawal Advantage Plan Form (SWAP Form) Official Points of Acceptance

3 Name of Scheme Category of Scheme Type of Scheme Investment Objective Asset Allocation Pattern of the Scheme HDFC id-cap Opportunities Fund (HCOF)^ ^ The Scheme has undergone changes in fundamental attributes w.e.f. ay 2, id Cap Fund An open ended equity scheme predominantly investing in mid cap stocks To provide long-term capital appreciation/income by investing predominantly in id-cap companies. There is no assurance that the investment objective of the Scheme will be realized. Under normal circumstances the asset allocation will be as follows: Type of Instruments inimum Allocation aximum Allocation Risk Profile (% of Total Assets) (% of Total Assets) Equity and Equity Related Instruments of id Cap companies** High Equity and Equity Related Instruments other than above 0 5 High Debt Securities (including securitised debt) and money market 0 5 Low to edium instruments. Units issued by REITs and InvITs 0 10 edium to High Non-convertible preference shares 0 10 Low to edium ** Investment universe of id Cap : The investment universe of id Cap shall comprise companies as defined by SEBI from time to time. In terms of SEBI circular (SEBI / HO/ ID/ DF/ CIR/ P/ 2017/ 114) dated October 6, 2017, the universe of id Cap shall consist of 101st to 250th company in terms of full market capitalization and that the Scheme will be required to adhere the following: - The list of stocks of id Cap companies prepared by AFI in this regard will be adopted. - The said list would be uploaded on the AFI website and would be updated every six months based on the data as on the end of June and December of each year or periodically as specified by SEBI. - Subsequent to any updation in the said list as uploaded by AFI, the portfolio of the Scheme will be rebalanced within a period of one month. The Scheme may invest in the schemes of utual Funds in accordance with the applicable extant SEBI (utual Funds) Regulations as amended from time to time. The Scheme may invest upto a maximum 5% of the total assets in Foreign Securities and upto 100% of its total assets in Derivatives. The Scheme may undertake (i) repo / reverse repo transactions in Corporate Debt Securities; (ii) Credit Default Swaps; (iii) Short Selling and such other transactions in accordance with guidelines issued by SEBI from time to time. Comparison of Existing Schemes, Investment Strategy & Risk itigation Strategy Risk Profile of the Scheme For comparison of Existing Schemes, Investment Strategy and Risk itigation Strategy, please refer to pages 8 to 18 for details. Please refer to pages 6 to 7 for details. Plans/ Options Plans Options under each Plan Regular Plan Growth Direct Plan Dividend (with Payout and Reinvestment facility) (Portfolio will be common for the above Plans). Default Plan Investors should indicate the Plan (viz Direct Plan/ Regular plan) for which the subscription is made by indicating the choice in the appropriate box provided for this purpose in the application form. In case of valid applications received without indicating any choice of Plan, the application will be processed for the Plan as under: Scenario ARN Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan Not mentioned Regular Direct Plan 4 entioned Direct Direct Plan 5 Direct Not entioned Direct Plan 6 Direct Regular Direct Plan 7 entioned Regular Regular Plan 8 entioned Not entioned Regular Plan In cases of wrong/ invalid/ incomplete ARN codes are mentioned on the application form, the application shall be processed under Regular Plan. The AC shall contact and obtain the correct ARN code within 0 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 0 calendar days, the AC shall reprocess the transaction under Direct Plan from the date of application without any exit load. Applicable NAV A] Applications for amount less than Rs. 2 lakh For Purchase (including switch-in): In respect of valid applications received upto.00 p.m. on a Business Day by the Fund along with a local cheque or a demand draft payable at par at the Official Point(s) of Acceptance where the application is received, the closing NAV of the day on which application is received shall be applicable. In respect of valid applications received after.00 p.m. on a Business Day by the Fund along with a local cheque or a demand draft payable at par at the Official Point(s) of Acceptance where the application is received, the closing NAV of the next Business Day shall be applicable However, in respect of valid applications, with outstation cheques / demand drafts not payable at par at the Official Point(s) of Acceptance where the application is received, closing NAV of the day on which the cheque / demand draft is credited shall be applicable. B] Applications for amount equal to or greater than Rs. 2 lakh i) For Purchases: In respect of valid applications received for an amount equal to or more than Rs. 2 lakh upto.00 p.m. at the Official Point(s) of Acceptance and where the funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the Scheme before the cut-off time i.e. available for utilization before the cut-off time - the closing NAV of the day shall be applicable. HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2,

4 Applicable NAV In respect of valid applications received for an amount equal to or more than Rs. 2 lakh after.00 p.m. at the Official Point(s) of Acceptance and where the funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the Scheme before the cut-off time of the next Business Day i.e. available for utilization before the cut-off time of the next Business Day - the closing NAV of the next Business Day shall be applicable. Irrespective of the time of receipt of applications for an amount equal to or more than Rs. 2 lakh at the Official Point(s) of Acceptance, where the funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the Scheme before the cut-off time on any subsequent Business Day i.e. available for utilization before the cut-off time on any subsequent Business Day - the closing NAV of such subsequent Business Day shall be applicable. ii) For Switch-ins: For determining the applicable NAV, the following shall be ensured: Application for switch-in is received before the applicable cut-off time. Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank account of the Scheme before the cut-off time. The funds are available for utilization before the cut-off time. Where application is received after the cut-off time on a day but the funds are cleared on the same day, the closing NAV of the next Business Day shall be applicable. For investments of an amount equal to or more than Rs. 2 lakh through systematic investment routes such as Systematic Investment Plans (SIP), Flex Systematic Investment Plan (Flex SIP), Systematic Transfer Plans (STP), Flex-STP, Swing STP, FLEXINDEX Plan, the units will be allotted as per the closing NAV of the day on which the funds are available for utilization by the Target Scheme. All multiple applications for investment at the Unit holders PAN and holding pattern level in a Scheme (irrespective of amount or the plan/option/sub-option) received on the same Business Day, will be aggregated to ascertain whether the total amount equals to Rs. 2 lakh or more and to determine the applicable Net Asset Value. Transactions in the name of minor received through guardian will not be aggregated with the transaction in the name of same guardian. The AC may have additional criteria for aggregation of multiple transactions. The criteria for aggregation of multiple transactions shall be as decided by the AC at its sole discretion from time to time. C] For Redemption (including switch-out) applications: In respect of valid applications received upto.00 p.m. on a Business Day by the Fund, same day's closing NAV shall be applicable. In respect of valid applications received after.00 p.m. on a Business Day by the Fund, the closing NAV of the next Business Day shall be applicable. Transactions through online facilities / electronic modes: The time of transaction done through various online facilities / electronic modes offered by the AC, for the purpose of determining the applicability of NAV, would be the time when the request for purchase / sale / switch of units is received in the servers of AC/RTA. In case of transactions through online facilities / electronic modes, there may be a time lag of upto 5-7 banking days between the amount of subscription being debited to investor s bank account and the subsequent credit into the respective Scheme s bank account. This lag may impact the applicability of NAV for transactions where NAV is to be applied based on actual realization of funds by the Scheme. Under no circumstances will HDFC Asset anagement Company Limited or its bankers or its service providers be liable for any lag / delay in realization of funds and consequent pricing of units. The AC has the right to amend cut off timings subject to SEBI (F) Regulations for the smooth and efficient functioning of the Scheme. inimum Application Amount / Number of Units Despatch of Repurchase (Redemption) Request Benchmark Index NIFT idcap 100 Dividend Policy Purchase Additional Purchase Repurchase Rs. 5,000 and any amount thereafter. Rs. 1,000 and any amount thereafter. Rs. 500 and in multiples of Rs. 1/- thereafter. There will be no minimum redemption criterion for Unit based redemption. Within 10 Business Days of the receipt of valid redemption request at the Official Points of Acceptance of HDFC utual Fund. It is proposed to declare dividends subject to availability of distributable surplus, as computed in accordance with SEBI (utual Funds) Regulations, Dividends, if declared, will be paid (subject of deduction of tax at source, if any) to those Unitholders / Beneficial Owners whose names appear in the Register of Unit holders maintained by the utual Fund/ statement of beneficial ownership maintained by the Depositories, as applicable, under the Dividend option as on the Record Date. The Dividend Warrants shall be despatched within 0 days of the declaration of the dividend. In the event of failure of dispatch of dividend within the stipulated 0 day period, the AC shall be liable to pay 15 per cent per annum to the unit holders. The AC reserves the right to change the record date from time to time. However, it must be distinctly understood that the actual declaration of dividend and the frequency thereof will inter alia, depend on the availability of distributable surplus as computed in accordance with SEBI (utual Funds) Regulations,1996. The decision of the Trustee in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. On payment of dividends, the NAV will stand reduced by the amount of dividend and dividend tax (if applicable) paid. Name of the Fund anager and tenure of managing the scheme (As on April 0, 2018) Name of the Trustee Company Performance of the Scheme (as at April 0, 2018) (Benchmarked to the Total Returns Index (TRI) Variant of the Index) r. Chirag Setalvad (Tenure: 10 years & 10 months) r. Rakesh Vyas (Dedicated Fund anager for Overseas Investments) (Tenure: 5 years & 11 months) HDFC Trustee Company Limited HCOF - Regular Plan - Growth Option Period Returns Benchmark (%)^ Returns (%)# Last 1 ear Last ears Last 5 ears Since Inception* ^ Past performance may or may not be sustained in the future Returns greater than one year are compounded annualized (CAGR). *Inception Date: June 25, 07 # NIFT idcap 100 Since inception returns are calculated on Rs. 10 (allotment price) Returns Absolute Returns for each Financial ear for last 5 years^ 70.00% 60.00% 50.00% 40.00% 0.00% 20.00% 10.00% 0.00% % HCOF - Regular Plan - Growth Option NIFT idcap % 18.% 6.6% 52.51% -1.6% -0.58% Financial ear 7.7% 6.46% 11.7% 10.25% 2 HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2, 2018

5 Performance of the Scheme (as at April 0, 2018) (Benchmarked to the Total Returns Index (TRI) Variant of the Index) Portfolio Details (as on April 0, 2018) HPCF - Direct Plan - Growth Option Period Returns Benchmark (%)^ Returns (%)# Last 1 ear Last ears Last 5 ears Since Inception* ^ Past performance may or may not be sustained in the future Returns greater than one year are compounded annualized (CAGR). *Inception Date: January 01, 1 # NIFT idcap 100 Since inception returns are calculated on Rs (allotment price) Note: The Scheme has undergone changes in fundamental attributes w.e.f. ay 2, Portfolio - Top 10 holdings (issuer - wise) Issuer % to NAV Cholamandalam Investment & Finance 4.41 Returns Absolute Returns for each Financial ear for last 5 years^ 70.00% 60.00% 50.00% 40.00% 0.00% 20.00% 10.00% 0.00% % Issuer HCOF - Direct Plan - Growth Option NIFT idcap % 18.% 64.67% 52.51% -0.4% -0.58% Financial ear 8.66% 6.46% 12.49% 10.25% % to NAV City Union Bank Ltd Sundram Fasteners Ltd Balkrishna Industries Ltd..90 Voltas Ltd..20 Hexaware Technologies Ltd TI Financial Holdings Ltd RBL Bank Ltd Exide Industries Ltd Grand Total 0.89 Aarti Industries Ltd Sector Allocation (% of Net Assets) Sector Allocation % to NAV Financial Services Automobile Consumer Goods Industrial anufacturing 9.78 Construction 8.21 Pharma 6.47 IT 6.07 Chemicals 5.07 Sector Allocation % to NAV Services 4.52 edia & Entertainment 2.46 Textiles 2.06 Others 1.65 etals 1.64 Energy 0.72 Fertilisers & Pesticides 0.42 Grand Total Portfolio Turnover Ratio - Last 1 year: 61.2% Aggregate of equity securities and debt instruments held by the Scheme at issuer level/sectors are as of the date indicated. Top 10 holdings disclosure do not include cash & cash equivalents (excluding reverse repo), fixed deposits and/or exposure in derivative instruments, if any. Others under sector disclosure include cash & cash equivalents. For complete details and latest monthly portfolio, investors are requested to visit portfolio Note: The Scheme has undergone changes in fundamental attributes w.e.f. ay 2, Expenses of the Scheme (i) Load Structure Continuous Offer Period Entry Load: Not Applicable Upfront commission shall be paid directly by the investor to the ARN Holder (AFI registered Distributor) based on the investors assessment of various factors including the service rendered by the ARN Holder. 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. No exit load shall be levied for switching between Options under the same Plan within a Scheme. Switch of investments to Direct Plan within the same Scheme shall be subject to applicable exit load, unless the investment was made directly i.e. without any distributor code. However, any subsequent switch-out or redemption of such investments from the Direct Plan will not be subject to any exit load. No exit load shall be levied for switch-out from Direct Plan to the Regular Plan within the same Scheme. However, any subsequent switch-out or redemption of such investment from the Regular Plan shall be subject to exit load based on the original date of investment in the Direct Plan. Switch of investments between Plans under a Scheme having separate portfolios, will be subject to applicable exit load. No exit load will be levied on Bonus Units and Units allotted on Dividend Re-investment. No exit load will be levied on Units allotted in the Target Scheme under the Dividend Transfer Plan. In respect of Systematic Transactions such as SIP, GSIP, Flex SIP, STP, Flex STP, Swing STP, Flexindex, Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. The Trustee reserves the right to change / modify the load structure from a prospective date. HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2, 2018

6 (ii) Recurring Expenses (% p.a. of daily Net Assets) Waiver of Load for Direct Applications Tax treatment for the Investors (Unit holders) Daily Net Asset Value (NAV) Publication For Investor Grievances, Please contact Unit holder s Information Actual expenses (inclusive of GST on anagement fees and additional TER) for the previous financial year ended arch 1, 2018 (Unaudited) : Regular Plan : 2.6% p.a. Direct Plan : 1.4% p.a. At least 5% of the Total Expense Ratio (TER) will be charged towards distribution expenses/ commission in the Regular Plan The TER of the Direct Plan will be lower to the extent of the above mentioned distribution expenses/ commission (at least 5% of TER) which is charged in the Regular Plan. For example, in the event that the TER of the Regular Plan is 1% p.a., the TER of the Direct Plan would not exceed 0.95% p.a. In addition to the recurring expenses specified for the Scheme(s), the following expenses may also be charged under the Scheme(s)- (a) Expenses in respect of inflows from beyond top 0 cities - a maximum charge of 0.0% on the daily net assets computed as per the guidelines issued by SEBI for meeting distribution expenses incurred for bringing inflows from such cities; (b) Expenses not exceeding 0.20% p.a. of daily net assets towards Investment anagement and Advisory Fees and the various sub-heads of recurring expenses mentioned under Regulation 52 (2) and (4) of SEBI (F) Regulations respectively; In terms of SEBI Circular No SEBI/ HO/ ID/ DF2/ CIR/ P/ 2018/ 15 dated February 02, 2018, in case exit load is not levied / not applicable, the AC shall not charge the said additional expenses. (c) Brokerage and transaction costs not exceeding 0.12% of the value of trades in case of cash market transactions and 0.05% of the value of trades in case of derivatives transactions; and (d) GST on Investment anagement and Advisory Fees. Pursuant to SEBI circular no. SEBI/ID/CIR No.4/ 16820/09 dated June 0, 2009 no entry load shall be charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications is no longer applicable. Investors are advised to refer to the Section on Taxation on investing in utual Funds in the Statement of Additional Information and to consult their own tax advisors with respect to the specific amount of tax and other implications arising out of their participation in the Scheme. The AC will calculate NAV on daily basis and disclose the NAV, Sale and Repurchase price at the close of every Business Day and as may be required, send for publication to atleast 2 daily newspapers. NAV can also be viewed on the website of the utual Fund ( and on the website of Association of utual Funds in India - AFI ( Investors may also contact any of the Investor Service Centres (ISCs) of HDFC utual Fund for the same. Investors may contact any of the Investor Service Centres (ISCs) of the AC for any queries / clarifications at telephone number / (toll free), Fax number. (022) , cliser@hdfcfund.com. Investors can also post their grievances/feedback/suggestions on our website under the section 'Feedback or Queries'. The Head Office of the AC will follow up with the respective ISCs to ensure timely redressal and prompt investor services. r. John athews, Head - Client Services can be contacted at HDFC House, rd Floor, H.T. Parekh arg, , Backbay Reclamation, Churchgate, umbai at telephone number (Direct) (022) or telephone number (Board) (022) His contact is: jmathews@hdfcfund.com Registrar and Transfer Agent : Computer Age anagement Services Pvt. Ltd., Unit: HDFC utual Fund 5th Floor, Rayala Tower, 158, Anna Salai, Chennai Telephone No: Fax No: enq_h@camsonline.com Account Statements 1. The AC shall send an allotment confirmation specifying the units allotted by way of and/or SS within 5 Business Days of receipt of valid application/transaction to the Unit holders registered address and/ or mobile number (whether units are held in demat mode or in account statement form). 2. The holding(s) of the beneficiary account holder for units held in demat mode will be shown in the statement issued by respective Depository Participants (DPs) periodically.. A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by mail or on or before 10th of the succeeding month. 4. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ arch) on or before 10th day of succeeding month, to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable. 5. Half yearly CAS will not be sent to those Unit holders who do not have any holdings in the schemes of mutual fund and where no commission against their investment has been paid to distributors, during the concerned half-year period. 6. The periodical CAS will be sent by the Depositories to investors holding demat accounts (whether or not units are held in demat form) referred to as SCAS and by utual Fund Industry to other investors referred to as F-CAS. 7. The periodical CAS are issued on the basis of Permanent Account Number (PAN). Thus, CAS shall not be received by the Unit holders for the folios not updated with PAN and / or KC details. Unit holders are therefore requested to ensure that the folios are updated with their PAN / KC details. 8. For folios of the Fund not included in the CAS (due to non-availability of PAN), the AC shall issue the necessary account statements within prescribed timeline by mail or In the event the account has more than one registered holder, the first named Unit holder shall receive the CAS/ account statement. 10. The Unit holder may request for a physical account statement without any charges by writing to/calling the AC/ISC/RTA. The utual Fund/ AC shall despatch an account statement within 5 Business Days from the date of the receipt of request from the Unit holder. Pursuant to SEBI Circular No. SEBI/HO/ID/DF2/CIR/P/2016/89 dated September 20, 2016, the following additional disclosures will be provided in the CAS issued to the investors: Each CAS/SCAS shall also provide the total purchase value / cost of investment in each scheme. CAS/SCAS issued for the half-year (ended September / arch) shall also provide (i) the amount of actual commission paid by the AC/ Fund to distributors (in absolute terms) during the half-year period, and (ii) the scheme s average Total Expense Ratio (in percentage terms) for the half-year period for the scheme s applicable Option (regular or direct or both) where the concerned investor has actually invested in. The term commission refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by the AC/Fund to distributors. The commission disclosed is gross commission and does not exclude costs incurred by distributors such as GST (wherever applicable, as per existing rates), operating expenses, etc. Further information pertaining to SCAS sent by Depositories: In case an investor does not wish to receive SCAS, an option shall be given by the Depository to indicate negative consent. 4 HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2, 2018

7 In case an investor does not wish to receive SCAS through , an option shall be given by the Depository to receive SCAS in physical. Investor(s) having multiple demat accounts across the Depositories shall have an option to choose the Depository through which the SCAS will be received. The half yearly SCAS will be sent by mail/ as per the mode of receipt opted by the investors to receive monthly SCAS. In case of demat accounts with NIL balance and no transactions in mutual fund folios and in securities, the depository shall send physical statement to investor(s) in terms of regulations applicable to Depositories. Periodic Disclosure onthly Portfolio Disclosures: Portfolio of the Scheme(s) as on the last day of the month shall be disclosed on or before the tenth day of the succeeding month on the website of the utual Fund viz. in the prescribed format. onthly Average Asset under anagement (onthly AAU) Disclosure: The utual Fund shall disclose the onthly AAU under different categories of Schemes as specified by SEBI in the prescribed format on a monthly basis on its website viz. ww.hdfcfund.com and forward to AFI within 7 working days from the end of the month. Half early Portfolio Disclosure: Full portfolio in the prescribed format shall be disclosed either by publishing it in one national English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the utual Fund is situated or by sending it to the Unit Holders within one month from the end of each half-year, that is as on arch 1 and September 0. It is also displayed on the website of the utual Fund on and Association of utual Funds in India (AFI) on Half early Results: Half yearly Unaudited Financial Results shall be hosted in the prescribed format on the website of the utual Fund on within one month from the close of each half year i.e. on arch 1 and on September 0 and an advertisement in this regard shall be published in at least one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the utual Fund is situated. A link for the half yearly Unaudited Financial Results shall also be provided on website of Association of utual Funds in India (AFI) on Annual Report: The Scheme wise annual report or an abridged summary thereof shall be sent: (i) by to the Unit holders whose address is available with the Fund, (ii) in physical form to the Unit holders whose address is not registered with the Fund and/or those Unit holders who have opted / requested for the same. The scheme wise annual report or an abridged summary thereof shall be sent by mail/ not later than four months from the date of closure of the relevant accounting year (i.e. 1st arch each year). The physical copy of the scheme wise annual report or abridged summary thereof shall be made available to the investors at the registered office of the AC. A link of the scheme annual report or abridged summary thereof shall be displayed prominently on the website of the Fund and shall also be displayed on the website of Association of utual Funds in India (AFI). HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2,

8 Risk Profile of the Scheme Scheme Specific Risk Factors utual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme Information Document of the Scheme carefully for details on risk factors before investment. Scheme specific Risk Factors include but are not limited to the following: While Small & id-cap stocks gives one an opportunity to go beyond the usual large blue chip stocks and present possible higher capital appreciation, it is important to note that Small & id-cap stocks can be riskier and more volatile on a relative basis. Therefore, the risk levels of investing in Small & id-cap stocks are more than investing in stocks of large well-established companies. It should be noted that over a period of time, Small, id and Large cap stocks have demonstrated different levels of volatility and investment returns. And it is important to note that generally, no one class consistently outperforms the others. Risk factors associated with investing in equities and equity related instruments Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. Investments in equity shares and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risks. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges. Investment in such securities may lead to increase in the scheme portfolio risk. While securities that are listed on the stock exchange carry lower liquidity risk, the ability to sell these investments is limited by the overall trading volume on the stock exchanges and may lead to the Scheme incurring losses till the security is finally sold. Risk factors associated with investing in Fixed Income Securities The Net Asset Value (NAV) of the Scheme, to the extent invested in Debt and oney arket instruments, will be affected by changes in the general level of interest rates. The NAV of the Scheme is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates. oney market instruments, while fairly liquid, lack a well developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. Investments in money market instruments involve credit risk commensurate with short term rating of the issuers. Investment in Debt instruments are subject to varying degree of credit risk or default (i.e. the risk of an issuer's inability to meet interest or principal payments on its obligations) or any other issues, which may have their credit ratings downgraded. Changes in financial conditions of an issuer, changes in economic and political conditions in general, or changes in economic or and political conditions specific to an issuer, all of which are factors that may have an adverse impact on an issuer's credit quality and security values. The Investment anager will endeavour to manage credit risk through in-house credit analysis. This may increase the risk of the portfolio. The Investment anager will endeavour to manage credit risk through inhouse credit analysis. Government securities where a fixed return is offered run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. The new level of interest rate is determined by the rates at which government raises new money and/or the price levels at which the market is already dealing in existing securities. The price-risk is not unique to Government Securities. It exists for all fixed income securities. However, Government Securities are unique in the sense that their credit risk generally remains zero. Therefore, their prices are influenced only by movement in interest rates in the financial system. Different types of fixed income securities in which the Scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly, the Scheme risk may increase or decrease depending upon its investment pattern. e.g. corporate bonds carry a higher level of risk than Government securities. Further even among corporate bonds, AAA rated bonds are comparatively less risky than AA rated bonds. The AC may, considering the overall level of risk of the portfolio, invest in lower rated / unrated securities offering higher yields as well as zero coupon securities that offer attractive yields. This may increase the absolute level of risk of the portfolio. As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rates and are subject to issuer default risk. Therefore, the interest rate risk of zero coupon securities is higher. The AC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio. Zero coupon or deep discount bonds are debt obligations that do not entitle the holder to any periodic payment of interest prior to maturity or a specified date when the securities begin paying current interest and therefore, are generally issued and traded at a discount to their face values. The discount depends on the time remaining until maturity or the date when securities begin paying current interest. It also varies depending on the prevailing interest rates, liquidity of the security and the perceived credit risk of the Issuer. The market prices of zero coupon securities are generally more volatile than the market prices of securities that pay interest periodically. Scheme's performance may differ from the benchmark index to the extent of the investments held in the debt segment, as per the investment pattern indicated under normal circumstances. Prepayment Risk: Certain fixed income securities give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the Scheme to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the Scheme. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the "interest on interest" component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed. Settlement risk: Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are uninvested and no return is earned thereon. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme's portfolio, due to the absence of a well developed and liquid secondary market for debt securities, may result at times in potential losses to the Scheme in the event of a subsequent decline in the value of securities held in the Scheme's portfolio. The Scheme at times may receive large number of redemption requests, leading to an asset-liability mismatch and therefore, requiring the investment manager to make a distress sale of the securities leading to realignment of the portfolio and consequently resulting in investment in lower yield instruments. General Risk factors Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The NAV of the Units of the Scheme can go up or down because of various factors that affect the capital markets in general. As the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and settlement periods, the time taken by the utual Fund for redemption of Units may be significant in the event of an inordinately large number of redemption requests or restructuring of the Scheme. In view of the above, the Trustee has the right, in its sole discretion, to limit redemptions (including suspending redemptions) under certain circumstances, as described under SID 'Right to Restrict Redemption and / or Suspend Redemption of the units' mentioned in SID. At times, due to the forces and factors affecting the capital market, the Scheme may not be able to invest in securities falling within its investment objective resulting in holding the monies collected by it in cash or cash equivalent or invest the same in other permissible securities / investments amounting to substantial reduction in the earning capability of the Scheme. The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity requirements. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. The AC may choose to invest in unlisted securities that offer attractive returns. This may increase the risk of the portfolio. Investment strategy to be adopted by the Scheme may carry the risk of significant variance between the portfolio allocation of the Scheme and the Benchmark particularly over a short to medium term period. Performance of the Scheme may be affected by political, social, and economic developments, which may include changes in government policies, diplomatic conditions, and taxation policies. Risk factors associated with investing in Foreign Securities Currency Risk: oving from Indian Rupee (INR) to any other currency entails currency risk. To the extent that the assets of the Scheme(s) will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. Interest Rate Risk: The pace and movement of interest rate cycles of various countries, though loosely co-related, can differ significantly. Hence by investing in securities of countries other than India, the Scheme(s) stand exposed to their interest rate cycles. Credit Risk: Investment in Foreign Debt Securities are subject to the risk of an issuer s inability to meet interest and principal payments on its obligations and market perception of the creditworthiness of the issuer. This is substantially reduced since the SEBI (F) Regulations stipulate investments only in debt instruments with rating not below investment grade by accredited/registered credit rating agency. Taxation Risk: In addition to the disclosure related to taxation mentioned under section Special Consideration in the SID, Investment in Foreign Securities poses additional challenges based on the tax laws of each respective country or jurisdiction. The scheme may be subject to a higher level of taxes than originally anticipated and or dual taxation. The Scheme may be subject to withholding or other taxes on income and/or gains arising from its investment portfolio. Further, such investments are exposed to risks associated with the changing / evolving tax / regulatory regimes of all the countries where the Scheme invests. All these may entail a higher outgo to the Scheme by way of taxes, transaction costs, fees etc. thus adversely impacting its NAV; resulting in lower returns to an Investor. Legal and Regulatory Risk: Legal and regulatory changes could occur during the term of the Scheme which may adversely affect it. If any of the laws and regulations currently in effect should change 6 HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2, 2018

9 or any new laws or regulations should be enacted, the legal requirements to which the Scheme and the investors may be subject could differ materially from current requirements and may materially and adversely affect the Scheme and the investors. Legislation/ Regulatory guidelines could also be imposed retrospectively. Country Risk: The Country risk arises from the inability of a country, to meet its financial obligations. It is the risk encompassing economic, social and political conditions in a foreign country, which might adversely affect foreign investors financial interests. In addition, country risks would include events such as introduction of extraordinary exchange controls, economic deterioration, bi-lateral conflict leading to immobilisation of the overseas financial assets and the prevalent tax laws of the respective jurisdiction for execution of trades or otherwise. To manage risks associated with foreign currency and interest rate exposure, the utual Fund may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be stipulated by SEBI/ RBI from time to time. Risk factors associated with investing in Derivatives The AC, on behalf of the Scheme may use various derivative products, from time to time, in an attempt to protect the value of the portfolio and enhance Unit holders' interest. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Credit Risk: The credit risk in derivative transaction is the risk that the counter party will default on its obligations and is generally low, as there is no exchange of principal amounts in a derivative transaction. arket Risk: arket movements may adversely affect the pricing and settlement of derivatives. Illiquidity risk: This is the risk that a derivative cannot be sold or purchased quickly enough at a fair price, due to lack of liquidity in the market. Additional Risk viz. Basis Risk associated with imperfect hedging using Interest Rate Futures (IRF): The imperfect correlation between the prices of securities in the portfolio and the IRF contract used to hedge part of the portfolio leads to basis risk. Thus, the loss on the portfolio may not exactly match the gain from the hedge position entered using the IRF. Risk factors associated with Securities Lending As with other modes of extensions of credit, there are risks inherent to securities lending, including the risk of failure of the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. Risk factors associated with investing in Securitised Debt The Risks involved in Securitised Papers described below are the principal ones and does not represent that the statement of risks set out hereunder is exhaustive. Limited Liquidity & Price Risk There is no assurance that a deep secondary market will develop for the Certificates. This could limit the ability of the investor to resell them. Limited Recourse, Delinquency and Credit Risk The Credit Enhancement stipulated represents a limited loss cover to the Investors. These Certificates represent an undivided beneficial interest in the underlying receivables and do not represent an obligation of either the Issuer or the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. No financial recourse is available to the Certificate Holders against the Investors' Representative. Delinquencies and credit losses may cause depletion of the amount available under the Credit Enhancement and thereby the Investor Payouts to the Certificate Holders may get affected if the amount available in the Credit Enhancement facility is not enough to cover the shortfall. On persistent default of a Obligor to repay his obligation, the Servicer may repossess and sell the Asset. However many factors may affect, delay or prevent the repossession of such Asset or the length of time required to realise the sale proceeds on such sales. In addition, the price at which such Asset may be sold may be lower than the amount due from that Obligor. Risks due to possible prepayments and Charge Offs In the event of prepayments, investors may be exposed to changes in tenor and yield. Also, any Charge Offs would result in the reduction in the tenor of the Pass Through Certificates (PTCs). Bankruptcy of the Swap Bank If the Swap Bank, becomes subject to bankruptcy proceedings then an Investor could experience losses or delays in the payments due under the Interest Rate Swap Agreement. Risk of Co-mingling With respect to the Certificates, the Servicer will deposit all payments received from the Obligors into the Collection Account. However, there could be a time gap between collection by a Servicer and depositing the same into the Collection account especially considering that some of the collections may be in the form of cash. In this interim period, collections from the Loan Agreements may not be segregated from other funds of originator. If originator in its capacity as Servicer fails to remit such funds due to Investors, the Investors may be exposed to a potential loss. Risks associated with processing of transactions through Stock Exchange echanism The trading mechanism introduced by the stock exchange(s) is configured to accept and process transactions for mutual fund units in both Physical and Demat Form. The allotment and/or redemption of Units through NSE and/or BSE or any other recognised stock exchange(s), on any Business Day will depend upon the modalities of processing viz. collection of application form, order processing/settlement, etc. upon which the Fund has no control. oreover, transactions conducted through the stock exchange mechanism shall be governed by the operating guidelines and directives issued by respective recognized stock exchange(s). Risk factors associated with REITs and InvITs: Price Risk: Securities/Instruments of REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. The extent of fall or rise in the prices is a fluctuation in general market conditions, factors and forces affecting capital market, Real Estate and Infrastructure sectors, level of interest rates, trading volumes, settlement periods and transfer procedures. Interest Rate Risk: Securities/Instruments of REITs and InvITs run interest rate risk. Generally, when interest rates rise, prices of units fall and when interest rates drop, such prices increase. Credit Risk: Credit risk means that the issuer of a REIT/InvIT security/ instrument may default on interest payment or even on paying back the principal amount on maturity. Securities/ Instruments of REITs and InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled. Liquidity Risk: This refers to the ease with which securities/instruments of REITs/InvITs can be sold. There is no assurance that an active secondary market will develop or be maintained. Hence there would be time when trading in the units could be infrequent. The subsequent valuation of illiquid units may reflect a discount from the market price of comparable securities/instruments for which a liquid market exists. As these products are new to the market they are likely to be exposed to liquidity risk. Reinvestment Risk: Investments in securities/instruments of REITs and InvITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or dividend pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. Legal and Regulatory Risk The regulatory framework governing investments in securities/instruments of REITs and InvITs comprises a relatively new set of regulations and is therefore untested, interpretation and enforcement by regulators and courts involves uncertainties. Presently, it is difficult to forecast as to how any new laws, regulations or standards or future amendments will affect the issuers of REITs/InvITs and the sector as a whole. Furthermore, no assurance can be given that the regulatory system will not change in a way that will impair the ability of the Issuers to comply with the regulations, conduct the business, compete effectively or make distributions. IPORTANT: Before investing, investors should also ascertain about any further changes pertaining to scheme such as features, load structure, etc. made to the Scheme Information Document/ Key Information emorandum by issue of addenda/ notice after the date of this Document from the AC/ utual Fund/ Investor Service Centres (ISCs)/ Website/ Distributors or Brokers. HDFC id-cap Opportunities Fund - Key Information emorandum Dated ay 2,