Rytvae Financial Consultant - NFO Presentation HDFC manufacturing-fund

HDFC Mutual funds launched new Manufacturing fund closing on 10th May 2024, Hurry up and allocate, NIFTY manufacturing performing with more than 14% and performed better than other index. Look at long term horizon for expected returns. For more information, Pls contact M/s Rytvae Financial Consultant. www.Rytvae.com

1. MANUFACTURING FUND HDFC
STEP INTO THE AMRIT KAAL WITH
NFO PERIOD: 26
th
April to 10
th
May, 2024

2.
0202
All figures in USD bn
Source: PIB, UBS, Morgan Stanley Research
GDP -Gross Domestic Product
GVA- Gross value added
GCF - Gross Capital Formation
Nominal GDP
Manufacturing GVA
Overall exports
Merchandise exports
Overall capex, GCF
3,353
453
778
453
1,080
FY23
2X
2.8X
2X
2.6X
2X
7,000
1,281
1,552
1,198
2,112
FY30E
₹
The information herein is based on expectations and the actual results could vary materially. This is not indicating returns
from any investments. There is no assurance as regards to performance of any company, sector or investment.

3.











0203

4. Most Asian peers have higher share of manufacturing in GDP
Country
High growth
phase
Average Real GDP
growth in high
growth phase
Manuf acturi ng
share at start of
high growth phase
Manuf acturi ng share at
the end o f high
growth phas e
Thailand 1985-1991 9.3% 21.9% 28.2%
China 1990-2005 9.8% 9.1% 32%
Indonesi a 1983-1996 6.3% 13.4% 24.1
Vietnam 2010-2022 6.1% 19.2% 25.8%
India 2023-2030 ?? 15% ??

0204
Source: UBS Research
India’s Manufacturing share in GVA targeted to grow
from ~15% to 20% by 2030, when GDP could be US $7 trillion

5. ??
0205
Source: UBS Research, Morgan Stanley Research
Manufacturing leads to holistic growth and large-scale employment
~45% of India's labor force is employed in Agriculture 
China's journey to an upper-middle income country saw people moving from ‘farms’ to ‘factories’
71
297
332
0
50
100
150
200
250
300
350
Agriculture & alliedManufacturing Services
Level of labour productivity (during 2008-17), Rs '000
Manufacturing adds ~4x more value vs. Agriculture… .....Explaining China’s journey from Low to upper
middle income
Vietnam
Philippines
Indonesia
India
China
China (1990)
Bangladesh
0
5
10
15
20
25
30
35
40
45
50
200 2,2004,2006,2008,20010,20012,20014,200
Share of Agriculture in
Total Employment (%)
GDP per capita ($)

6. 
0206
CAB: Current Account Balance
Source: Morgan Stanley Research, UBS Research
India’s merchandise import (Excl. Oil & Gold) has been increasing
INR has depreciated 3.3% against USD (10Y CAGR) and median inflation has been ~5.2% 
Vietnam and China, with high manufacturing exports, have current account surpluses;
leading them to enjoy much lower currency depreciation* and hence lower inflation
Growth in consumption without commensurate
manufacturing growth leading to higher trade deficit
Current Account being in control is key for
macroeconomic resilience
Non-Oil Non-Gold Trade Deficit, USD mn
10Y Median ChinaVietnamIndia
Median Inflation (%) 1.9 3.2 5.2
Current account balance (US$ bn)236.0 5.8 -32.0
CAB as % of GDP 1.7 1.9 -1.2
Currency Depreciation* (%) 1.5 1.4 3.3
*against USD
   
9
6
-3
-10
-22
-32
-25
-4
-25
-39
-7
-23
-38
-31
-50
-54
-44-44
-103
-99
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2022
FY2023
FYTD2024
-120
-100
-80
-60
-40
-20
0
20

7.
0207
Convergence of Several Enablers to provide
Multi Decadal Growth
?????????
Large Consumer base
Large Export opportunity in the
Multipolar World
„ …†€
Large & skilled Labour pool 
Cost advantages vs peers
Improving infrastructure
Service ecosystem to support
high end manufacturing
?????????
Focus on Atmanirbharta
Low leverage + higher
capacity utilization
Macro-economic stability +
geopolitical factors
+ +

8. ??
0208
What ailed Manufacturing
over the years?
Steps taken to address these
issues
Outcomes
Introduction of labour code
Investments in roads, power
and railways
National Logistics Policy -
Road and Rail infrastructure
Consolidation of 44 laws into 4 codesComplex labour laws
Poor infrastructure
High logistics costs
Low ease of doing business
Lack of government focus
Focus on improving ease of
doing business
Manufacturing share in GVA targeted to
touch 20% by 2030 (from 15% currently)
Non-Tariff barriers
Unfavourable FTAs
Road construction 3 kms per day in 2013 to 30 kms
per day in 2023, 4901 km expressways(FY23), DFC, etc.
Rank improved from 142 to 63 in World Bank's
Ease of Doing Business Ranking 2020
Introduction of PLIs, Phased Manufacturing
Program, etc.
BIS quality certification, import licenses, etc.
Rank improved from 54 (in 2014) to 38 (in 2023) in
World Bank's Logistics Performance Index
Source: PIB and other publicly available information.
DFC: Dedicated Freight Corridor

9. †Š
0209
With consumption growth highest amongst peers,
India is now among the Top 3 / 5 markets for key products globally
India is Fastest Growing Consumer Market ..providing sufficient scale to support local manufacturing
% x
4%
4.4
3.3
8.5
1.6
3.5
7.2
3.15
4.78
13.7
14.6
CY13
6 1 5 2 4 4 6 310 10
CY23 CY13 CY23 CY13 CY23 CY13 CY23 CY13 CY23
12%
5%
12%
2%
5%
2%
5%
7%
11%
Smart Phone
India Share in World (Ex China)
Volumes (million units)
India’s Rank in the World (Ex China) demand
Room ACs Referigerators CarsFully Automatic
Washing Machine
Source: Morgan Stanley, UBS, BoFA research
China
India
Malaysia
Indonesia
Philippines
Vietnam
SingaporeUS
20%
30%
40%
50%
60%
70%
80%
90%
3% 4% 5% 6% 7% 8% 9% 10%11% 12%
Consumption, % of GDP
Consumption, YoY% 5 yr avg (nominal)
Trend in Consumption
The size of the bubble is
consumption in US$bn

10. ˆ‹Œ­„
0210
Source: BCG Analysis, Sep 2023
The shift away from China has accelerated post Covid pandemic
China’s share in US Goods imports has declined from 21% in 2018 to 13% in 2023
Source: Bloomberg, U.S. International Trade Commission
China** includes US Code §301 tariffs on Chinese imports chart displays
maximum value of 25%.
Share in US Goods Imports % BCG Global Manufacturing Cost Competitiveness Index
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
VietnamThailandIndia Taiwan
2018 2023
0%
5%
10%
15%
20%
25%
China
121
113
110
100
979796
92
85
8281
60
70
80
90
100
110
120
130
China**Western
Europe
AustraliaUS &
Canada
Easter
Europe
Japan &
S.Korea
ChinaSouth
America
IndiaSoutheast
Asia
Mexico
2022 landed cost—including manufacturing cost, logistics, and tariffs
Manufacturing a product in India is on an average 15%
cheaper relative to US, and should lead to increasing
exports over time
India, Vietnam, Taiwan and Thailand have seen rising
share in US Goods imports
1.9%
1.3%
1.80%
2.1%
2.70%
1.8%
2.70% 21%
13%
3.50%

11. ‹€ Ž€ˆ
0211
India’s merchandise export market share to increase from 1.8% to 3.5% by 2031 implying CAGR of ~11%
Merchandise exports is expected to grow faster than services
0.5%
1.8%
3.5%
0.6%
4.4%
6.4%
0.5%
2.4%
4.5%
0%
1%
2%
3%
4%
5%
6%
7%
1991
2001
2011
2021
2022
2031E
1991
2001
2011
2021
2022
2031E
1991
2001
2011
2021
2022
2031E
Merchandise Services Total
453
1198309
683
0
500
1,000
1,500
2,000
1991 2001 2011 2021 2022 2031E
Merchandise Exports Service Exports
11%
9%
India Exports (US$ bn) India Shar e in World Exports
Source: Morgan Stanley
The information herein is based on expectations and the actual results could vary materially.
This is not indicating returns from any investments. There is no assurance as
regards to performance of any company, sector or investment.

12. †„‘Š†
0212
Note: Countries considered for this exercise: China, Vietnam, Indonesia, Philippines and Thailand
India scores high against peer Asian manufacturing nations
Country Labour cost ($ per hour) Working Age population STEM graduates English speaki ng graduates
India's Rank
India to become the largest pool of Labor supply…. ...with lowest labour cost globally
Average Monthly Earnings of Employees in Manufacturing Sector
Source: ILO, UBSSource: UN, Jefferies
Addition in 30-60 age cohorts by 2045
200
152
13
3 2 1 1
-3 -4
-11
-45
-119
(mn people)
Increase/Decrease in age (30-60) population by 2045
150
100
50
0
-50
-100
-150
India
Brazil
Taiwan
Japan
Europe
China
Thailand
Australia
Viet Nam
US
UK
5058
364435493467
2687
1000
605
458
323278198189
0
1000
2000
3000
4000
5000
6000
US
Singapore
Korea
UK
Japan
China
Malaysia
Thailand
Vietnam
Philippines
India
Indonesia
US$
2 1 1 1

13. Œ
0213
Source: Bain analysis
Chemical ~$110 - $130
~$45 - $50
~$70 - $75
~$120 - $145
~$45 - $55
~$95 - $110
Pharma
Industrial machinery
Electrical & electronics
Automotive
Textile & apparel
19% - 23%
Projected exports CAGR (FY22-28)
16% - 18%
18% - 20%
35% - 40%
15% - 18%
13% - 16%
The information herein is based on expectations and the actual results could vary materially. This is not indicating returns from
any investments. There is no assurance as regards to performance of any company, sector or investment.
FY28 Projected exports (US$ bn)

14. „€„€
0214
Production cost per unit to manufacture a Fan
China vs India
Cost benefit for India vs Peer Manufacturing Nations
  China India
Cost of Goods Sold 4.25 4.67
Labour cost 0.83 0.34
Other cost (electricity and depreciation) 0.03 0.03
Annual Production costs per unit 5.12 5.03
     
Freight cost (assum ing 50/50 revenue split EU/US) 1.88 1.67
     
Average cost (assum ing 50/50 revenue split EU/US) 7.00 6.70
US$ Cost assuming To tal Production per year - 8,254,615
Source: UBS Research
12.5
9.6
8.7
7.1 7 6.9 6.9
6.7
5
6
7
8
9
10
11
12
13
US KoreaPolandThailandChinaIndonesiaVietnam India
Estimated Cost for producing a fan in US$
Lower labour cost is already helping India become
lowest cost producer
As scale increases, India could see further
cost advantages

15.
0215
Source: PIB, Company data
MTPA: Million Tonnes per annum
TAT - Turnaround Time
? ? ? ?
1.76x in 2023 vs. 2014
Average TAT improved
from ~82hrs (FY17) to
48hrs (FY23)
DFC – Rail has increased
from 72hrs (FY18) to 24hrs
(FY23)
Road avg kms/truck/day
increased from 190 (FY15)
to 250 (FY23)
2.5x Rail Network Electrified
in last 10 years
2x in last 10 years 2.5x in 2023 vs 2015,
…’‘
(1,535 vs. 871 MTPA)
(85% vs. 33%)
(1.5 lakh km highway network)
Peak power shortage of 17%
(FY13) to almost NIL (FY23)
Target 500 GW by 2030

16.   ‰
0216
India has significant presence in the services segment of the high value manufacturing supply chain
Advanced manufacturing is also on the horizon underpinned by high-end service economy
20% of global chip design engineers are in India 
Qualcomm- one of the largest chip supplier has 35% of its employees designing high end chips in India



20% chip designers &
engineers based in India
Entails chip sizing, layout
& transistor linking
India needs Foundry & OSAT to realize
full localization
Pattern wafers with
designed layouts
Package individual IC
chips & conduct testing
Assemble packaged
IC chips onto PCB
Integrate PCBA with
other modules
US$18bn of investment approved for OSAT and
foundry to be commissioned in phases
over CY25- 28
Over last 3Y India has emerged as fastest
growing manufacturer in these verticals

Possible to leverage this
talent pool
More large-scale investments in foundries
and OSAT are likely to be announced
Indian production expected to grow
3x and
exports by 8x in next 4-5 years
Design
Semicon
Manufacturing
(Foundry)
Assembly and
Testing (OSAT)
PCB assembly
(PCBA)
System level
assembly
(ODM, EMS)
OSAT: Outsourced Semiconductor Assembly and Test, PCBA: Printed Circuit Board Assembly, ODM: Original Design Manufacturer, IC Chips: Integrated Circuit Chips
Source: PIB

17. Œ€
0217
Focus on Atmanirbharta implies Manufacturing growth could be > GDP growth
Snapshot of PLI schemes and their impactBase Corporate Tax Rate in Asian Economies
Indian Defence Production (US$ bn)
Indian Defence production could grow
4x by 2030
India has very competitive tax rates for corporate sector, and has even lower rates for new manufacturing companies
that commenced operations before March 2024
Did you know?
Source: Morgan Stanley, PIB Source: IBEF, Invest India, Expert Interviews, BCG Analysis
Number of sectors:
Actual Investment
till FY23
Key Sectors - Large-scale electronics
manufacturing, pharmaceuticals, telecom
and networking products, food processing
and white goods.
Rs 62,500 Crore
Incremental
Production till FY23
Rs 6,74,000 Crore
Exports boost
till FY23
Rs 2,56,000 Crore
Employee
Generation till FY23
3,25,000
14
Domestic
Exports
+5.7%
11
1
10
2
11
10
33
13
43
FY20 FY23 FY30
+18.6%
0%
5%
10%
15%
20%
25%
30%
Philippines
Sri Lanka
Bangaldesh
China
Indonesia
Korea
Malaysia
Japan
India
Cambodia
Taiwan
Thailand
Veitnam
Singapore
India*
15%
22%
Source: World Bank, Morgan Stanley Research
* for new manufacturing companies with operations
commencing before Mar-24

18. ????
0218
Source: Jefferies
0.99
0.57
0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24e
Gross D/E ratio for large listed companies
(x)
Corporate leverage
at ~15 year lows
60
65
70
75
80
85
Sep-09
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
Sep-23
Capacity Utilisation (Tr-4Q moving average)
(%)
Current : 74.6%
Low Leverage within Listed Companies Improvement in Capacity Utilisation Levels

19. Š‹†
0219
MNC - Multi National Companies
Source: Jefferies
Share of Manufacturing Sector in New Company
Registrations
Manufacturing FDI (3 year rolling avg) (US$bn)
MNCs led large part of China’s manufacturing export boom of 2000s, with a share in exports of 58% in 2005.
Over time local champions become large and now MNCs contribute ~34% of Chinese exports
18%
20%
22%
24%
26%
28%
30%
21%
2015
22%
2018
28%
2022
8.0
8.3
10.3
10.7
12.312.3
13.0
13.7
13.0
13.7
13.0
12.7
15.0
15.3
5
7
9
11
13
15
17
FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23
Source: CMIE
Did you know?

20. „
 
0220

21. ‹ 
0221
Source: JM Financial
Mobile phones were a large import item with import mix of 78%
Over time local manufacturing ecosystem developed supported by PLI
Value of production has increased ~7x and exports by 60x since FY16
India’s rank in global mobile phone exports has improved from 178 in FY16 to 5 in FY23
189
540
900
1,320
1,810
2,140
2,200
2,750
3,500
-
1,000
2,000
3,000
4,000
FY15FY16FY17FY18FY19FY20FY21FY22FY23
151114
114
272
229
450
900
-
200
400
600
800
1,000
FY16FY17FY18FY19FY20FY21FY22FY23
Exports
Rank:
178
78%
56%
30%
19%
6%4%
8%
5%4%
0%
20%
40%
60%
80%
100%
FY15FY16FY17FY18FY19FY20FY21FY22FY23
Imports as a % of Total Market Value
239 19 19 89 95
Exports from India (INR bn)Production in India (INR bn)

22. ????
0222
iPhone Production ramping up in India Samsung led a large push in exports from Vietnam, and
today accounts for >US$65bn of goods exports
Source: UBS Research, Department of Vietnam CustomsSource: Apple, Ministry of Commerce, Jefferies66
0%
5%
10%
15%
20%
25%
30%
0
10
20
30
40
50
60
70
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Samsung's Vietnam subsidiaries' exports, US$ bn
as % of Vietnam's merchandise exports, RHS
US$ bn
India contributes ~12% of Apple’s iPhone supply and it is expected to increase to ~25% in 2-3 years
Did you know?
Year Models Global Shipment Share (%)
2017 iPhone SE (1st Gen)
iPhone 6S
iPhone 12
iPhone 13 & 14
iPhone 15
iPhone 7 & XR
iPhone 11, SE ( 2nd Gen)
2018
2019
2020
2021
2022
2023
<1%
<1%
~1%
<2%
3%
7%
10%

23. ‹„Ž 
0223
Indian pharma manufacturing has been a major success
story, with formulations and biologicals exports growing
at 8% CAGR vs 5% for the global market
Indian companies have gained large share in generics
segment in the US
32%
34% 42% 45% 45% 46% 48%
0%
20%
40%
60%
80%
100%
FY17 FY18 FY19 FY20 FY21 FY22 FY23
US Generics Volume Share by Country %India Auto Parts Trade Balance has improved
USIndiaEUOthers
India is now the one of the largest manufacturer of 3Ws
and tractors (first), two-wheelers (second), heavy trucks
(third), and cars (fourth) in the world and is a significant
producer of auto parts
Did you know?
Source: ACMA, Elara Securities Research
(2.5) (2.5)
(0.9)
(0.5)
0.7
(0.2)
(3.0)
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
-
0.5
1.0
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Net Exports (USD bn)

24. ‹ 
0224
Value of imports for AC and its components
has nearly halved, and Import content per
unit has declined by ~60%
Toys exports have started to increase
gradually & imports are declining fast
EMS Industry could mimic this success
story, with expectations of 25% CAGR
in exports
EMS - Electronic Manufacturing Services
Source: JM Financial, Nirmal Bang Research
Import Value ($mn) India's Toys and Gaming Trade ($mn)
203
239 239
327 326
372
344
178
110
159
100
150
200
250
300
350
400
FY19 FY20 FY21 FY22 FY23
Exports Imports
8.12
6.38
1.15
13.46
19.40
8.08
10.6%
24.9%
47.8%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
0
5
10
15
20
25
30
ConsumptionProduction Exports
INR Lakh crores
FY22 FY27E 5 year CAGR
Finished AC + Components Import Content/AC
837
1,329
727
234
204
77
-
50
100
150
200
250
0
200
400
600
800
1,000
1,200
1,400
CY14CY15CY16CY17CY18CY19CY20CY21CY22CY23

25. ‹
0225
MSM: Million Square Metres
Source: ICICI Securities, HSBC Research
Tiles market – India gaining an edge Cables and Wires –
Exports have nearly doubled in 5 years
891
1,133
1,003
1,274
1,717
400
600
800
1,000
1,200
1,400
1,600
1,800
2,018 2,019 2,020 2,021 2,022
US$ mn
India' C&W Exports
Total Export
-
200
400
600
800
1,000
1,200
CY14CY15CY16CY17CY18CY19CY20CY21CY22CY23
China Tile Exports volume (MSM)
India Tile Exports volume (MSM)

26. ”„
0226

27. ?
0227
Core of the portfolio
(at least 80%) will be
invested in stocks that
represent the diverse
sectors of manufacturing
Stock selection will be
based on bottom-up
research ideas which are
expected to have long
runway for growth
Reasonably well
diversified portfolio
Flexible across market
capitalisation
HDFC Mutual Fund / AMC is not guaranteeing returns on investments made in the scheme.
The current investment strategy is subject to change depending on the market conditions.
Core Portfolio Portfolio
Concentration
Investment Style /
Stock Selection
Market Cap

28. Š„
0228
Manufacturing covers ~37% of the overall market cap, and is well diversified amongst sectors and market capitalisation
Market Cap (Rs lac cr)%
154.34 100%
25.89
25.02
24.19
18.48
13.45
12.62
11.88
10.71
8.82
2.25
1.02
17%
16%
16%
12%
9%
8%
8%
7%
6%
1%
0%
85.55
33.42
35.38
55%
22%
23%
Number of companies
691
190
12
72
77
72
63
27
95
28
35
20
43
76
572
By Sector
Capital Goods
Oil, Gas & Consumable Fuels
Automobile and Auto Components
Healthcare
Consumer Durables
Fast Moving Consumer Goods*
Metals & Mining
Chemicals
Construction Materials
Textiles
Others
By Market cap classification
Large Cap
Mid Cap
Small Cap
Manufacturing Universe (Mcap >1000cr)
* excluding Diversified FMCG and Personal Products
Source: Capitaline, AMFI, Bloomberg. Data as of February 29, 2024
Above list is for illustration purpose only. Please refer to Scheme Information Document for more information.
The Fund shall invest in companies:
that are engaged in manufacturing
activity,
that may benefit from Government’s
Make in India initiatives,
that are positioned to substitute
India’s imports by manufacturing
locally,
that export goods manufactured in
India and have the potential to
increase employment in India

29. ??8??
0229
NIFTY India Manufacturing Index has outperformed broader Indian Equity Markets in the long term
Period CAGR returns   Volatility 
 
Return-risk 
 
NIFTY India
Manufacturing
NIFTY 500 NIFTY 50
NIFTY India
Manufacturing
NIFTY 500 NIFTY 50
NIFTY India
Manufacturing
NIFTY 500 NIFTY 50
Since Inception 15.6% 14.9% 14.7% 21.4% 20.7% 21.4% 0.73 0.72 0.69
15 years 18.4% 16.9% 15.6% 18.6% 17.5% 18.0% 0.99 0.97 0.87
10 years 16.2% 15.8% 14.2% 17.5% 16.2% 16.5% 0.93 0.97 0.86
5 years 21.2% 17.2% 15.3% 18.9% 18.4% 19.0% 1.12 0.93 0.80
3 years 25.4% 19.3% 16.3% 14.7% 13.8% 13.7% 1.73 1.40 1.20
1 year 55.0% 40.5% 30.1% 10.9% 10.0% 9.7% 5.03 4.03 3.11
Past performance may or may not be sustained in the future and is not a guarantee of any future returns.
Data as on 28 March 2024
Source: MFI Explorer

30. ??
0230
Risks Mitigants
Slowdown in domestic and/or global
growth could impact revenue and
profit growth
With India emerging as the largest source of cost
effective labor supply its manufacturing value
proposition should allow it to be able to grow faster
than rest of the world
Pace of reforms and implementation of
policy initiatives could slow down or
turn adverse
Indian government policies for manufacturing
sector are favourable to the industry
Geopolitical developments impacting
the availability of raw materials
Continued focus on diversification of supply chain
and efforts toward localisation should help over time
Risks around meeting ESG
requirements
Bottom up analysis of ESG risks for investee companies
Impact of Automation and AI
Automation and/or AI could lead to slower job creation,
however, it is likely to bring overall cost down there by
increasing affordability across goods and services

31. ??? ?
0231
‘‹
ˆ‰
Growing consumption, investments and exports
Changing geopolitical dynamics (China + 1)
Emergence of India as a manufacturing powerhouse
Government’s push for self-reliance (Atmanirbhar Bharat) by way
of reforms and incentives
Supportive macroeconomic environment with rising capex, low leverage
and high levels of capacity utilisation
Emergence of India as the largest pool of cost-effective labor supply
Global realignment of supply chains
High value-add manufacturing should accelerate, supported by
dominance of a strong high end service economy 

32.
0232
Rakesh Sethia is a Fund Manager and Senior Equity Analyst and has collectively over 19 years of
experience, of which 17 years in Equity research and 2 years in other corporate roles. In the
current role, he covers Energy, Telecom, Logistics and Transportation and Consumer durables.
He joined HDFC Asset Management Company Ltd in May-2020. Prior to that, he worked 11 years at
Morgan Stanley group and 2 years at HSBC Securities and Capital Markets where he was leading
equity research of Oil & Gas and telecom sectors.
Rakesh has done MBA in Finance from NMIMS, Mumbai in 2007. Rakesh is also a CFA Charterholder
and certified FRM.

33.
0233
Type of Scheme An open ended equity scheme following manufacturing theme
Particulars HDFC Manufacturing Fund
Investment Objective
Fund Manager $
Benchmark Index
Investment Plans
Mr. Rakesh Sethia
Nifty India Manufacturing Index (TRI)
Investment Options
Minimum
Application Amount
Load Structure
Entry Load : Nil
Exit Load : In respect of each purchase/switch-in of units, an Exit load of 1% is payable if units are redeemed/switched-out within
1 month from the date of allotment.
No Exit Load is payable if units are redeemed / switched-out after 1 month from the date of allotment.
No Entry / Exit Load shall be levied on bonus units and Units allotted on Re-investment of Income Distribution cum Capital Withdrawal.
In respect of Systematic Transactions such as SIP, Flex SIP, STP, Flex STP, Swing STP, Exit Load, if any, prevailing on the date of registration
/ enrolment shall be levied.
• Direct Plan
• Regular Plan
Under Each Plan: Growth, Income Distribution cum Capital Withdrawal – Payout and Reinvestment of IDCW
For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at Investor
Service Centres of HDFC Mutual Fund.
$Dedicated fund manager for overseas investments Mr. Dhruv Muchhal
To provide long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in the
manufacturing activity. There is no assurance that the investment objective of the Scheme will be realized.
During NFO Period
Purchase / Switches: Rs. 100/- and any amount thereafter
During continuous offer period (after scheme re-opens for repurchase and sale):
Purchase / Additional Purchase / Switch:
Rs. 100/- and any amount thereafter

34.
0234
Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows
@ The Scheme may invest in the schemes of Mutual Funds in accordance with the applicable extant SEBI (Mutual Funds) Regulations as amended from time to time.
* including securitised debt, other structured obligations (SO), credit enhanced debt (CE), debt instruments with special features such as subordination to equity
(absorbs losses before equity capital) and /or convertible to equity upon trigger of a prespecified event for loss absorption (also referred to as “perpetual debt instruments”).
Minimum Allocation Maximum Allocation
(% of Net Assets)(% of Net Assets)
Risk Profile
80 100 Very High
0 20 Very High
Units of REITs and InvITs 0 10 Medium to High
0 20 Low to Medium
Units of Mutual Fund @ 0 20 Low to High
Types of Instruments
Equity and Equity related instruments of companies
in engaged in manufacturing theme
Equity and Equity related instruments of companies
other than above
Debt securities*, money market instruments
and Fixed Income Derivatives

35.  †Ž­Š
0235

• Investment predominantly in equity & equity related securities of
companies engaged in the manufacturing theme.
• To generate long-term capital appreciation
*Investors should consult their financial advisers, if in doubt about
whether the product is suitable for them.
#The product labeling assigned during the NFO is based on internal
assessment of the scheme characteristics or model portfolio and the
same may vary post NFO when the actual investments are made.
For latest riskometer, investors may refer to the Monthly Portfolios
disclosed on the website of the Fund viz. www.hdfcfund.com.
This product is suitable for investors who are seeking*: Riskometer#
The Scheme being thematic in nature carries higher risks versus diversified equity mutual funds on account of concentration and
sector specific risks.

36.
0236
The views expressed herein are as of 8
th
April, 2024 and are based on 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 not an investment advice. 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 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. Stocks/Sectors referred are illustrative and should not be construed as an investment advice
or a research report or a recommendation by HDFC Mutual Fund (“the Fund”) / HDFC AMC to buy or sell the stock or any other security covered
under the respective sector/s. The Fund may or may not have any present or future positions in these sectors. Past performance may or may
not be sustained in future and is not a guarantee of any future returns. HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering /
communicating any indicative yield on investments made in the scheme(s). Neither 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.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

37. €” ƒ‚