One of my favourite Fund, a fund managed by Shri Prashant Jain who has brought laurels to HDFC AMC and himself. The dividend yield consistency is so good that we have started recommending this fund as a pension fund. A fund which all investor should have in their portfolio.

1. HHDDFFCC PPRRUUDDEENNCCEE FFUUNNDD
(Open ended Balanced Scheme)
The Fund that has seen it all
Celebrating 20
years*of Prudent
1
investing
October 16, 2014
This product is suitable for investors who are seeking*:
Capital appreciation over long term
Investment predominantly in equity and equity related instruments of medium
to large sized companies
• High risk (BROWN)
* Investors should consult their financial advisers if in doubt about whether
the product is suitable for them. Fund Inception date: February 1, 1994
Note: Risk is represented as:
(BLUE) investors understand that their principal will be at low risk
(YELLOW) investors understand that their principal will be at medium risk
(BROWN) investors understand that their principal will be at high risk

2. The journey so far…
• Launched as Centurion Prudence Fund in January 1994, it was renamed as Zurich India Prudence Fund
and finally HDFC Prudence Fund in June 2003.
*
balanced Fund in India with a AUM of ~ INR 7000 crores as
• HDFC Prudence Fund is today the largest
on 30th September, 2014 and ~ 3 lac investors
• In this journey of over 20 years, Rs 10,000 has become ~Rs 4.5 lacs (~45 times) at CAGR of ~20.3%
* *
• Our sincere thanks to all investors, distributors, well wishers etc. in making this possible
• A special thanks to 2,500 investors who have stayed with us right through this 20 year journey
2
2
“Compound interest is the eighth wonder of the world.
He who understands it, earns it ... he who doesn't ... pays it.” – Albert Einstein
* Source: AMFI - Average AUM : Rs 7,058 crs (July – Sep 2014), ** Past performance may or may not be sustained in Future, Refer Slide No. 16

3. The Fund that has seen it all.
Crises, bubbles, events, market cycles… HDFC Prudence Fund has seen it all
3
3
A disciplined approach to investing with a long term focus has enabled HDFC Prudence Fund
to weather all of the above and generate ~20.3%* CAGR over 20 years
* Past performance may or may not be sustained in Future, Refer Slide No 16

4. The Fund that has seen it all
4.5 lacs
Sensex Levels ~4,000 ~5,000 ~10,000 ~20,000 ~9,000 ~20,000 ~27,000
0.67 lacs
0.49 lacs
Reference made to SENSEX in this slide is only for easy understanding of market movement. The Benchmark for this FUND
is CRISIL Balanced Fund Index. * Past performance may or may not be sustained in Future, Refer Slide No 16
4

5. Salient Features of HDFC Prudence Fund
• Prudence being a balanced fund, invests in both equities and in debt
• Asset Allocation between equities/debt is a function of valuations, growth outlook, interest
rates etc.
• Equity strategy
Clear long term focus
Multi cap strategy, flexibility to invest in large / mid / small cap stocks
Preference for high quality companies
Effective diversification of portfolio to reduce risk
• Debt Strategy
5
Portfolio duration is actively managed based on outlook for interest rates with a 2-3 year view
Strong preference for good credit quality
5
One Fund that offers the best of both asset classes
For details on ‘Investment Strategy’ refer Scheme Information Document available on www.hdfcfund.com

6. Consistent dividends
• The Fund has paid dividends in each of last 15 years
• Total dividends paid in last 15 years aggregate to Rs 50.9 per unit
• Double digit dividend yield in each of last 10 years
In last 15 years 1999 2000 2001 2002 2003 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Dividend per unit (Rs) (A) 2.0 1.5 0.9 1.0 2.0 3.0 1.5 5.0 5.0 5.0 5.0 2.5 3.5 3.5 3.5 3.0 3.0
NAV (Record Date) (B) 17.7 15.2 12.7 13.9 18.7 23.7 20.2 25.3 30.5 32.5 33.5 17.4 31.2 31.3 29.5 27.5 25.7
Dividend Yield (%) ( A / B ) 11 10 7 7 11 13 7 20 16 15 15 14 11 11 12 11 12
6
^ Past performance may or may not be sustained in the future. There is no assurance or guarantee to Unit holders as to rate/quantum of dividend distribution nor that the
dividends will be paid regularly
All dividends are on face value of Rs. 10 per Unit. After payment of the dividend, the per Unit NAV falls to the extent of the payout and statutory levy, if any. Please log on to
www.hdfcfund.com for Record Date-wise listing of dividends declared.

7. India Economic Outlook : on the recovery path
• GDP growth, CAD, Fiscal deficit (FD), IIP, CPI, WPI are showing eennccoouurraaggiinngg ttrreenndd
• A strong, pro economy, pro business government bodes well for economy and for businesses
• Recent sharp fall in crude oil prices, should lead to sharply lower CAD, FD and inflation
Source : Citi Research, Internal estimates, Colored rows refer to yearly data; other represent quarterly data 7

8. Equity Markets : A positive outlook
*
despite markets
Low P/E’s
* *
EBITDA margins at cyclical lows run up
24.0
22.0
20.0
18.0
16.0
14.0FY
% SP BSE Sensex EBITDA margin (%)
93 95 97 99 01 03 05 07 09 11 13
45
40
35
30
25
20
15
10
5
0
Roll PE (LHS) Average (LHS) 30,000
91 93 95 97 99 01 03 05 07 09 11 13
25,000
20,000
15,000
10,000
5,000
0
SENSEX (RHS) **
*
Source : CLSA
Reasonable P/E’s at cyclically low margins leads to positive outlook for equities
Source : BAML
Reference made to SP BSE SENSEX in this presentation is only for easy understanding of market movement and must not be construed as future performance of 8
SP BSE SENSEX. The Benchmark for this fund is Crisil Balanced Fund Index. Refer Disclaimer / Risk Factors on Slide 20

9. Interest rates : Headed lower
• Falling fiscal deficit, low CAD, falling inflation and likely further fall in inflation should lead to
Inflation drivers are moderating
Past Future
lower rates
High commodity prices Lower/Stable Commodity prices
INR depreciation Stable INR
Strong Consumer demand Slowdown in Consumer demand
High wage inflation Moderation in wage growth
High increase in MSP's Low growth in MSP's
Sharply rising Diesel prices Stable prices
9

10. HDFC Prudence Fund - Positive Outlook
• Economic outlook for India is improving
• Equity valuations are attractive
SENSEX @ 26,630 is trading at 15.6x FY15E; earnings upgrades are being witnessed (Source : CLSA)
• Cyclically low margins aid profit growth outlook
• Interest rates are near peak and are likely to come down in medium term
• In view of above, outlook for both equities and bonds is positive
• HDFC Prudence Fund, offers a simple solution to benefit from both eeqquuiittiieess aanndd bboonnddss
10
“Simplicity is the ultimate sophistication” - Leonardo da Vinci
Sensex value as on 30th Sep, 2014

11. Asset Allocation is the key to wealth creation – An illustration
You earn on what you invest
Debt, Equity allocation makes a
bigger difference to wealth over
long periods, than timing.
Initial investment of Rs 100 Value at Year
Equity % Debt %
10
CAGR (%)
100 0 404 15.0
80 20 367 13.9
60 40 328 12.6
40 60 291 11.3
20 80 253 9.7
0 100 216 8.0
For illustration purposes only. For calculation purpose CAGR returns for equities has been taken as 15% CAGR and for debt as 8% CAGR.
In India, household allocation to equity funds is minimal, there is a strong case to increase it.
11 11

12. The benefits of long term investing
Study based on return distribution of HDFC Prudence Fund over 20 years
Following table represents monthly rolling returns over last 20 years of HDFC Prudence Fund distributed over different
holding periods and return brackets, e.g., returns have been more than 15% p.a. iinn ~~5577%% ooff 11 yyeeaarr hhoollddiinngg
periods, more than 15% p.a. in ~63% of 3 year holding periods, more than 15% p.a. in ~81% 5 year holding periods
and more than 15% p.a. in ~100% of 10, 15 and 20 years holding periods
CAGR (%) 1 Year 3 Years 5 Years 10 Years 15 Years 20 Years
more than 20 49 46 55 83 94 56
more than 15 57 63 81 100 100 100
more than 10 65 75 96 100 100 100
more than 0 76 96 100 100 100 100
more than -10 89 100 100 100 100 100
more than -20 96 100 100 100 100 100
less than -20 4 0 0 0 0 0
• It can be clearly seen, that as the holding period increases, return profile improves
• This is consistent with the belief that equities are a long term asset class and that risk reduces as holding
period increases
12
“Time spent in markets is more important than timing the markets”
12
Performance data computed till September, 2014
^ Past performance may or may not be sustained in the future.

13. Fund Selection - Lane Changing does not work !
RANK 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 H H G H E D D E H G
2 D D A B G H E C A A
3 F G B A J F F J D J
4 E F I I F A C B F C
5 B I C F B J G G J F
6 C E H D C E J A G D
7 A B F J A C A F B B
8 I A D C D I H D E E
9 G C E E I G B H I I
10 J J J G H B I I C H
• The above data illustrates the calendar year performance of 10 largest diversified Equity /
Balanced funds as on Dec 31, 2013 for last 10 years
• It is evident that flavor of the season investing does not work. There is merit in sticking
with funds that have a disciplined approach to investments and have performed
across cycles
“If investing is entertaining, if you're having fun, you're probably not making any money”.
Data compiled by HDFC Mutual Fund
– George Soros
13 ^ Past performance may or may not be sustained in the future.

14. Summary : Keep it simple
• Economic outlook in India is slowly but steadily improving
• Equity valuations are attractive and interest rates are likely to come down in medium term
• Outlook for both equity and bonds is thus positive
• HDFC Prudence Fund, a balanced fund with a track record of 20 years across several cycles,
across good and bad times, is well positioned to benefit from improving economic environment,
and from positive outlook of equities and bonds
“A wise companion is half the journey” – Russian Proverb
14

15. Performance
(As on September 30, 2014)
Refer Disclaimer / Risk Factors on
Slide: 22 Slide 15 15

16. SCHEME PERFORMANCE SUMMARY
Past performance may or may not be sustained in the future.
$All dividends declared prior to the splitting of the Scheme into Dividend Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV
(ex-dividend NAV). #The Scheme is co-managed by Prashant Jain and Srinivas Rao Ravuri. +The Scheme is co-managed by Prashant Jain (Equities) and Shobhit Mehrotra
(Debt). @Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of balanced nature of the scheme where a portion of scheme's
investments are made in debt instruments. ^Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of hybrid nature of the scheme
where a portion of scheme's investments are made in equity instruments. 1. Benchmark 2. Additional Benchmark
Refer Disclaimer / Risk Factors on Slide: 24
16

17. Product Features
Type of Scheme An Open-ended Balanced Scheme
Inception Date (Date of
allotment)
February 1, 1994
Investment Objective 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 aannyy ccaappiittaall eerroossiioonn
Fund Manager $ Prashant Jain (Since June 19, 2003)*
Investment Plan HDFC Prudence Fund, HDFC Prudence Fund - Direct Plan#
Investment Option Under Each Plan: Growth Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility.
MinimumApplication Amount
(Under Each Plan/Option)
Purchase: ` 5,000 and any amount thereafter
Additional Purchase: ` 1,000 and any amount thereafter
Load Structure Entry 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.
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 18 months from the date of allotment.
No exit load is payable if units are redeemed / switched out after 18 months from the date of
allotment.
For further details on load structure, please refer to the Scheme Information Document / Key Information
* Date of migration from Zurich India Mutual Fund.
$ Dedicated Fund Manager for Overseas Investments: Mr. Rakesh Vyas since May 10, 2012.
# Direct Plan is for investors who purchase/subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments
through a Distributor. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc and no commission for 17
distribution of Units
will be paid / charged under the Direct Plan.
Memorandum
of the Scheme.
Benchmark CRISIL Balanced Fund Index
17

18. Asset Allocation Pattern
Under normal circumstances, the asset allocation (% of the net assets) of the Scheme’s
portfolio will be as follows:
Type of the
Instruments
Minimum
Allocation
(% of Net Assets)
Maximum
Allocation
(% of Net Assets)
Risk Profile of the
Instrument
Equity Equity
linked instruments
40 75 High
Debt Securities
and money market
instruments*
25 60 Low to Medium
*Investment in Securitised debt, if undertaken, would not exceed 10% of the net assets of the Scheme.
The scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 40% 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 25% of net assets) based on the
opportunities available subject to SEBI (Mutual Funds) Regulations, 1996.
18
18

19. Glossary
CAD - Current Account Deficit
FD -- FFiissccaall DDeeffiicciitt
GDP - Gross Domestic Product
MSP - Minimum Selling Price
EBITDA - Earning before interest, taxes, depreciation amortization
19

20. Thank You
20 20

21. DISCLAIMER
The views expressed herein are based on the basis of internal data, publicly available information and other
sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which
you must confirm before relying on them. The information contained in this document is for general purposes
only and is not an offer to sell or a solicitation to buy/sell any mutual fund units/securities. The document is
given in summary form and does not purport to be complete. The document does not have regard to specific
investment objectives, financial situation and the particular needs of any specific person who may receive this
document. The information/ data herein alone are not sufficient and should not be used for the development or
implementation of an investment strategy. The same should not be construed as investment advice to any
party. The statements contained herein are based on our current views 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. Neither HDFC Asset Management Company (HDFC AMC) and
HDFC Mutual Fund (the Fund) nor any person connected with them, accepts any liability arising from the use
of this document. The recipient(s) before acting on any information herein should make his/her/their own
investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any
decision taken on the basis of information contained herein.
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME
RELATED DOCUMENTS CAREFULLY.
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