Presenting

HDFC Short Term Plan

(An Open - Ended Income Scheme)
 Table of Contents

Product Rationale and Positioning

Investment Strategy

Portfolio Composition

Product Features and Assert Allocation Pattern

Fund Suitability and Rating

Disclaimer
 Product Rationale

Structured as an open-ended income scheme with the objective to generate

regular income through investments in debt securities and money market
instruments with short to medium term maturity

Positioned between the liquid fund and the income fund with respect to the risk
return matrix
 Positioning of the Short Term Plan

Gilt Funds
RETURN

Income Funds

Short Term Plans

Ultra Short Term Funds

Liquid Funds

RISK
Investment Strategy
 Investment Strategy

Focus would be on current yield with an average maturity of approx. 12 to 30

months

Predominantly invest in high quality corporate bonds which have a lower market
volatility

Investment in floating rate securities would be considered in order to mitigate

interest rate risks

Leverage on credit pricing inefficiencies between high credit bonds / securitised

assets

Controlled exposure to G–Secs

Maintaining a high quality portfolio

Portfolio Composition
(As on December 31, 2009)
 Portfolio Composition
(As on December 31, 2009)

Portfolio Classification by Asset Class (%)

Government Securities 1.06

Commercial Papers (CP) / Certificate of Deposit (CD) 31.55

Credit Exposures 58.10

Cash, Cash Equivalents and Net Current Assets 9.29

Average Portfolio Maturity – 1.24 Years

Modified Duration: 1.06
Net Assets (Rs. In crores) – 2,639.59
 Portfolio Composition
(As on December 31, 2009)

Portfolio Classification by Rating Class (%)

Sovereign 1.06

AAA / AAA(SO) / P1+ / P1+(SO) & Equivalent 88.65

AA+ / LAA+ & Below 5.88

Cash, Cash Equivalents and Net Current Assets 4.41

 Product Features
Type of Scheme An Open-ended Income Scheme

Inception Date February 28, 2002

Investment Objective To generate regular income through investments in Debt Securities and Money Market Instruments

Investment Plan / Options Growth Option and Dividend Option (Monthly*)

Dividend Option offers Payout and Reinvestment facility.
*25th of every month (or immediately succeeding Business Day if that day is not a Business Day)

Minimum Application Amount Purchase:

Rs. 5,000 and any amount thereafter
Additional Purchase:
Rs. 1,000 and any amount thereafter

Load Structure Entry Load: Not Applicable

Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will
be charged by the Scheme to the investor. 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.
Exit Load
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.

Fund Manager $ Anil Bamboli (since January 13, 2004)

Benchmark CRISIL Short Term Bond Fund Index

$ Dedicated Fund Manager for Overseas Investments: Anand Laddha

 Fund Manager’s Profile
Name and Designation Mr. Anil Bamboli – Senior Fund Manager - Fixed Income

Educational Qualifications B. Com

Grad CWA
MMS (Finance)
CFA – CFA Institute USA

Experience Collectively over 14 year of experience in Fund Management and Research

Assignments Held July 25, 2003 till Date

HDFC Asset Management Company Limited
May 1994 – July 2003
SBI Funds Management Pvt. Ltd.
Last Position Held – Asst. Vice President
 Asset Allocation Pattern
Under normal circumstances, the asset allocation (% of net assets) of the Scheme’s portfolio will be as
follows:

Types of Instruments Normal Allocation Normal Deviation Risk Profile

(% of Net Assets)

Debt Securities 60 Upto 33.33 Low to Medium

Money Market Instruments 40 Upto 50 Low

It is the intention of the scheme that the investments in securitised debts will not, normally, exceed 60% of the Net Assets of the
Scheme.
In addition to the securities stated in the table above, the scheme may enter into repos / reverse repos in the securities that it will
invest in as may be permitted by the RBI.
The scheme may seek investment opportunity in Foreign Debt Securities (max. 50% of net assets) subject to SEBI (Mutual Funds)
Regulations, 1996. The scheme may use derivatives mainly for the purpose of hedging and portfolio balancing (max. 50% of net
assets) based on the opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.
 Tax benefits / consequences
HDFC Short Term Plan (the “Scheme”) is classified as an ‘Income Scheme’ and
hence is not impacted by the increase in DDT applicable for ‘Liquid Schemes /
Money Market Mutual Funds’

Income distributed by the Scheme will be exempt from Income-tax in the hands
of investors

On income distribution if any made by the Scheme, additional income tax is

payable under section 115 R of the Income tax Act, 1961, at the following rates:

Category of Investors Dividend Distribution Tax (%) $

Individuals / HUF 14.1625

Others 22.66

$ Inclusive of surcharge @ 10%, education cess @ 2% and secondary and higher education cess @ 1%
Investors should be aware that the fiscal rules / tax laws may be changed and there can be no guarantee that the
current tax position may continue indefinately
In view of the individual nature of tax consequences, each investor is advised to consult his / her professional tax advisor
Fund Suitability
and Rating
 Why HDFC Short Term Plan?

Ideal investment vehicle in a less volatile interest rate environment

Maintains a high quality portfolio

Moderate MTM and interest rate risk

Emphasis on ‘Risk adjusted returns’

HDFC Short Term Plan is suitable for
investors:
With an investment horizon of short to medium term

Willing to tolerate moderate MTM and interest rate risk in return for potentially
higher returns in comparison to liquid funds
 Fund Rating

HDFC Short Term Plan has been assigned ‘Credit Risk Rating mfAAA’ by ICRA
Limited – Highest credit-quality rating assigned by ICRA to debt funds

Past performance is no guarantee of future results.

Please refer to the last slide on rating methodology.
DISCLAIMER: This presentation has been prepared and issued on the basis of internal data, publicly
available information and other sources believed to be reliable. The information contained in this document
is for general purposes only and not a complete disclosure of every material fact and terms and conditions
and features of HDFC Short Term Plan. The information/ data herein alone is not sufficient and shouldn’t
be used for the development or implementation of an investment strategy. It should not be construed as
investment advice to any party. The statements contained herein may include statements of future
expectations and other forward-looking statements that are based on our current views and assumptions
and involve known and unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such statements. The recipient alone shall be
fully responsible / liable for any decision taken on the basis of this presentation. The content of this
presentation is confidential and intended solely for the use of the addressee. If you are not the addressee,
or the person responsible for delivering it to the addressee, any disclosure, copying, distribution or any
action taken or omitted to be taken in reliance on it is prohibited and may be unlawful. No part of this
document may be duplicated in whole or in part in any form and/or redistributed without prior written
consent of the HDFC Mutual Fund/ HDFC Asset Management Company Limited. The recipient(s) should
before investing in the Scheme(s) make his/their own investigation and seek appropriate professional
advice.
ICRA Rating Disclaimer: The rating assigned by ICRA Ltd. should not be treated as a recommendation to buy, sell or hold the
units issued by the Scheme. ICRA Ltd. does not assume any responsibility on its part, for any liability, that may arise consequent
to HDFC Mutual Fund not complying with any guidelines or directives issued by SEBI or any other mutual fund regulatory body.
The Rating should not be construed as an indication of the performance of the Scheme or of volatility of its return. ICRA
reserves the right to suspend, withdraw or revise the rating at any time on the basis of new information or unavailability of
information or such circumstances, which ICRA believes, may have an impact on the rating assigned to the Scheme.

Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no
assurance that the Scheme objectives will be achieved and the NAV of the Scheme may go up or down depending
upon the factors and forces affecting the securities market. Past performance of the Sponsors and their affiliates / AMC /
Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance
or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Investors in the
Scheme are not being offered any guaranteed / assured returns. The NAV of the units issued under the Scheme may be
affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of
individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. HDFC Short Term Plan,
(an open ended income scheme) is only the name of the Scheme and does not in any manner indicate either the
quality of the scheme, its future prospects and returns. Please read the Scheme Information Document and
Statement of Additional Information before investing. Investment Objective: The objective of the scheme is to
generate regular income through investment in debt securities and money market instruments. Asset Allocation: Debt
Securities: 60%. Money Market Instruments: 40%. Investment in Securitised Debt: Max. 60% of the net assets. Load
Structure: Entry Load: Not Applicable. Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no
entry load will be charged by the Scheme to the investor. 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. Exit Load: 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. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing
Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of Rs. 1
lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and
with HDFC Asset Management Company Limited as the Investment Manager.
THANK YOU