HDFC Mid-cap Opportunities Fund

Investment Strategy
Fundamentally Strong Businesses
• Invest in Fundamentally strong businesses having predictable cash flows and sustainable long-term competitive advantages
• Create a portfolio of ‘growth’ and ‘value’ based on their discount to intrinsic or private market value

Risk Management
Small and Mid-Cap companies carry higher risk than large cap companies, particularly over the short and medium term. The Scheme endeavours to control risk by adopting following investment strategy:
• Maximum exposure to single small and mid-cap company to be restricted to 10% of net assets
• Number of stocks in the portfolio to be at least 25
• The investment in Small Cap to be restricted to 15% of net assets
• The Scheme permits investments in companies other than small and mid-cap companies up to 25% of net assets
• Due diligence – regular company visits and financial analysis

WHY CLOSE – ENDED FUND?
• Mid and Small-Cap companies may take time to mature, therefore there is a need to remain invested for a longer period of time
• Flexibility to develop core portfolio with longer time horizon to reap full benefits of investments as there is no pressure to invest/divest in hurry
• Helps take advantage of volatility

PRODUCT FEATURES
• Liquidity – The Scheme will offer for redemption/switch out of units on an ongoing basis at quarterly intervals at NAV based prices. The Redemption/Switch-out will be available only during the specified Redemption Period i.e. 15th day (or immediately succeeding business day if that day is not a business day) immediately after end of each calendar quarter
• Options – Growth and Dividend (with Payout and reinvestment) options. Dividend reinvestment facility will be available only after the scheme is converted into an open-ended scheme
• Application Amount – Minimum of Rs 5,000 and in multiples of Rs 1,000 thereafter