History & key information of HDFC AMC. The vision, Milestone & major events of HDFC AMC

1. 1
HDFC Asset Management Company
Limited
Ujjwal Dey 66
Parth Gosalia 74
Amit Gulve 76
Ashish Kabra 79
Siddhart Runwal 102
Aman shah 108
Presented by

2. History & Key Information
Setup Date- Jun-30-2000
Incorporation Date- Dec-10-1999
Sponsor- HDFC & Standard Life Investments Ltd.
Trustee- HDFC Trustee Company Limited
Chairman- Deepak Parekh
CEO MD- Mr. Milind Barve
CIO- Mr. Prashant Jain
Deepak Parekh

3. Assets Under
Management(1)
₹ 3,575 bn
US$ 47 bn
Equity-Oriented
39%
₹ 1,408 bn
US$ 18 bn
₹ 2,167 bn
US$ 29 bn
61%
Non-Equity
Oriented
HDFC AMC at a glance
₹ 94 bn
PMS & SMAAUM
9.4mm
Live Accounts
221 Branches 65k+
Empaneled
Distribution Partners
1,192 Employees
4
Equity-oriented
schemes- 28
Debt schemes- 91
Liquid schemes- 3
Other schemes- 5

4. VISION
To be a dominant player in the Indian mutual fund space recognized
for its high levels of ethical and professional conduct and a
commitment towards enhancing investor interests. Our CSR
initiatives will be aligned with the same principles to serve a social
purpose, sustainable development of the society and the
environment in which it operates.

5. • June 2003
Acquired Zurich Asset Management Company Limited having an AUM of Rs.34 billion,
pursuant to which the Company achieved a combined AUM of Rs.118 billion
• March 2011
HDFC Mutual Fund becomes #1 for Equity AUM
• June 2014
Acquired Morgan Stanley Mutual Fund schemes, having an AUM of Rs.19 billion
• March 2016
HDFC Mutual Fund becomes #2 for total AUM
• April 2017
The Company’s Equity AUM crossed Rs.1 trillion
• December 2017
The Company’s AUM crossed Rs.3 trillion
Milestones & Major Events

6. Most Preferred Choice of Individual Investors
14.6%
13.5%
12.0%
7.8% 6.9%
HDFC ICICIPru
MF MF
SBI ABSL MF Nippon
MF MF
Individual Assets Market Share(Jun-20)
9

7. Pestle Analysis
Political
-Transition of Government and Changes in Policy
- Role Local Governments Play
Economic
-Demand Shifts from Goods Economy to Service Economy
-Employment Rate
Social
-Age
-Standard of Living

8. Technological
-Mobile App
-Acceptance of mobile payments and fintech
services
Legal
-Regulated by SEBI(Mutual Fund)
Regulation,1996
Environmental
-CSR

9. Strengths:
• Consistent market leadership
position.
• Trusted brand and strong
parentage
• Superior and diversified product
mix
• Multi channel distribution
network.
• Consistent profitable growth
Opportunities:
• Low financial literacy
• Competition from another
financial instrument
• Retail expansion
• New product offerings
Weaknesses:
• Promoter decreasing their
shareholding.
• Accelerated customer redemptions
• Emerging markets
• Advisory fees
THREATS:
• Adverse market fluctuations
• Underperformace of investment
products
• Unavailability of appropriate
investment opportunities
• Failure to continue with existing
distribution relationships
SWOT Analysis

10. Porter Five Forces Analysis
S
Supplier
• Nature of supplier
• SEBI rules
• Traders
• Premium for
retention
C
Competitor
Total 41 players
• HDFC MF
• ICICI Pru MF
• Reliance MF
• Aditya Birla
Sun Life MF
• SBI MF
B
Buyer
• Large no. of
alternatives
• Low switching cost
• Individual buyers
• Institutional buyers
• Banks and National
distributors
S
Substitution
• Life insurance
• Bank fixed
deposit
• Self-investment
in equity
N
New Entry
• SEBI Regulatory
requirements
• Low start up cost
• AMU dependency

11. Multi-channel Distribution Network
TotalAUM (Jun-20)
Equity-oriented AUM (Jun-20)
HDFC Bank 5.2%
Banks, 9.9%
IFAs 23.4%
National Distributors
17.8%
Direct 49.0%
HDFC Bank 9.6%
Banks, 15.3%
IFAs 40.7%National Distributors
24.8%
Direct 19.3%
Well diversified distribution channels
12

13. What differentiates HDFC AMC?
• High quality product mix
• Strong retail presence
• Efficient cost management
• High dividend payout ratio

14. Finance strategy
• Presently HDC AMC is the second largest AMC in India
• Market share of 14% of MF industry
• Consistent dividend distribution policy
• Revenue target of 3000 crores by FY 24
• Reduce cost and margin expansion by use of digital platform
Marketing strategy
• Capitalizing the scope of MF industry in India
• Strategy of product communication and Awareness
‘Kya plan hai ' campaign
• CSR initiative and partnering with ICS
• Cross selling of products through HDFC Ltd and HDFC Bank

15. Digital Initiatives - Enhanced
WhatsApp for Investors
for ease in communication
hdfcfund.com
Investors & Partners: Quick links for easy
online transactions, website landing page
assisting with digital transactions etc.
$
Videos to help investors and
partners in their Digital journey
Facility for internal employees to create
transactions on behalf of partners
Video KYC (E-KYC) ensuring
convenience and efficiency
Digital Marketing Education Series IFA
Webinars & personalizedwebsites
10,000 + Partner Coverage 90,000 + total participants
120+ programmes
organized
24 YouTubeVideos
3,000 + views
15

16. Operations strategy
• The main operations of the company is providing Mutual Fund
services and PMS services.
• Total AUM of 3.79 lakh crores
• Key personnel of HDFC AMC
• 221 branches PAN India and 65000 Distribution partners
• HDFC MF online and Mobile application
HR Strategy
• HDFC AMC has 1150 employees
• Competitive compensation , Rewarding culture , Good working
environment
• Lower customer complaints
• LEAP initiative

17. SBI MF, 21.0%
HDFC MF,
11.7%
ICICI Pru MF, 11.4%
ABSL, 8.6%
UTI MF,
8.5%
Others, 38.8%
#2 Player in B-30 Markets
Geographic Spread
Network of 221 branches with 145 in B-30 cities(2)
65k+ empaneled distribution partners
B 30,
12.6%
T 30,
87.4%
TotalAUM by T30 and B30 cities
13

18. Thank You
23