Classification - Internal

No. 1 in Mass
Best Private Best Bank Best for wealth
Affluent Category
Bank in India in India transfer - succession
Euromoney Private
PWM Global Euromoney planning in India 2021:
Banking and Wealth
Private Banking Awards for Asia money Private
Management Survey
Awards 2021 Excellence 2021 Banking Awards
2022

Ashutosh Mohanty
Classification - Internal
 Classif ication -
Internal

OUR BANK & ACCOLADES

Our Presence HDFC Bank Wealth – Overview

Total Assets under Management* – 4,00,000 Crores+

6,499 Branches *Includes: Mutual Funds, PMS, AIF and Demat. Data as on 31st December 2022

Team of experts to partner for all your financial needs

Wealth Office Presence in 216 Cities / Towns

Open architecture & non-proprietary framework to evaluate and

curate products that keep customer interests in focus

Dedicated Team of 650+ Relationship Managers,

Support RM’s and Investment Analysts
Bespoke solutions with prudent asset allocation to optimize risk
adjusted returns

Bank’s Presence in 3,188 Cities / Towns Institutionalized approach to investing, reviewing and
monitoring

Wealth
 Classif
Classif U ou make informed investment decisions
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PRODUCT OFFERINGS – OPEN ARCHITECTURE

One Stop Shop for your Banking and Investment Needs

Mutual Funds Alternates Insurance Others

 Tie-ups with 36 AMC’s to offer funds  Sophisticated products such as PMS,  Tie-ups with 9 insurance companies to  Tie-ups for offshore investments,
across equity, debt and hybrid AIF, Bonds and Structures through offer multiple solutions across life, succession and tax planning
categories referral arrangement with HSL health & general insurance for your
 Well researched insights and curated list protection needs
of recommended funds
Large Cap Small Cap Portfolio Management Services( PMS) Alternate Investment Funds Wealth Transfer & Succession Planning
Funds Funds Annuity and Protection Plans

Mid Cap Funds Flexi Cap Funds

Bonds and Structured Products Offshore deposits & investments

Large and Thematic Funds
Midcap Funds

Debt Funds – Across durations

rid Funds – Balanced Advantage, Savings, Aggressive and Conservative Hybrid

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BESPOKE SOLUTIONS WITH PRUDENT ASSET ALLOCATION
Risk Profiling
 Understand Your Goals
 Assess Your risk-taking Ability And
Appetite
 Categorize into Moderate,
Aggressive and Conservative
Quantify Financial Goals
Wealt
Classification -
Asset Allocation
 Define Asset Allocation
 Rule Based Investment Mandates
 Curated allocation in equity & fixed
income basis risk profile and client
suitability
 Review Calendar
Portfolio Recommendations
 Products To Invest In Based On
Quantitative & Qualitative Research
 Create Portfolio As Per Financial Goals
& Guidelines
 Ensuring Suitability as per risk appetite
and capacity
Monitoring & Review
 Consolidated Exposure, Performance
And Detailed Analytics Reporting
 Customized Reports on Portfolio
Observations & Actionable
 Plan for Rebalancing
4
 Classification -

RISK PROFILING – MARKETS GO THROUGH CYCLES

Asset Classes show major variances in drawdowns and returns - Investors are better served if they invest as per their risk profile
Performance of S&P BSE Sensex
70,500
US Sub-prime crisis, Global economic
59,750 Increase in global inflation, Lehman Bros. bankruptcy slowdown
US raised interest rates, Euro Zone Debt crisis Corona Virus Pandemic
& Prices of LME crash, Index fell - 21%
49,000 prices of LME crash, Index fell - 22% Index fell - 37%
Index fell - 60%
38,250 Index fell - 23% Yr - 2015-16 Yr - 2022-23
27,500 Yr - 2008-09 Yr - 2010-12

16,750
Yr - 2006 Global inflation, Russia- Ukraine war,
Fear of interest rate hike - globally
6,000 Index fell - 13%
Dec-05 Mar-07 Jun-08 Aug-09 Nov-10 Jan-12 Apr-13 Jun-14 Sep-15 Nov-16 Feb-18 May-19 Jul-20 Oct-21 Dec-22

10-year G-sec Yield Curve for past 20 years

10.00 Yr - 2013
Yr - 2008 9.47 9.24
9.00 8.97 Yr - 2018
Yr -
8.16
8.00 7.44
Yields (in

7.00
7.33
7.11
6.00

5.00 6.22 5.78

4.95 5.24
4.00
May-

Mar-

Jan-

Jun-

Nov-

Apr-

Feb-

Jul-

May-

Mar-

Jan-

Jun-

Nov-

Apr-

Feb-

Jul-
03
Oct-
03

04
Aug-
04

05

05

05

06
Sep-
06

07

07
Dec-
07

08
Oct-
08

09
Aug-
09

10

10

10

11
Sep-
11

12

12
Dec-
12
Dec-
02

Source: ICRA

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RISK PROFILER BASED ASSET ALLOCATION STRATEGY

Conservative Moderate Aggressive

Gold 5% Gold Gold 5%

5%
Equity 25% Debt 20%
Debt 40%

Equity 55%
Debt 70% Equity 75%

Low Duration Fund, Short Duration Funds, Corporate Bond Funds,

Short
Banking
Duration
& Funds,
PSU Funds,
Corporate
RBI Bonds,
Bond Funds,
DirectBanking
Bonds & PSU Funds, Direct Bonds
Short Duration Funds, Direct Bonds

Large & Mid Cap Funds, Multi/Flexi Cap Large & Mid Cap Funds, Multi/Flexi Cap Funds, Mid Cap/ Small
Multi/Flexi
Cap Funds,
Cap
Balanced
Funds, Large
Advantage
& Mid Cap, Mid Cap/Small Cap Fu
Funds, Balanced Advantage Fund

Sovereign Gold Bonds, Gold Funds

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IMPORTANCE OF ASSET ALLOCATION

Calendar Year Returns of various Asset Classes (in %)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
International Small-Cap Credit Risk G-Sec Small-Cap Gold International Small- Cap Small- Cap Gold
29 63 10 15 60 8 27 31 63 11
Large-Cap Mid-Cap Corporate Bond Corporate Bond Mid-Cap G-Sec Gold Gold Mid-Cap Credit Risk
9 55 9 12 48 8 18 27 39 5
Real Estate Large- Cap Mid-Cap Credit Risk Large- Cap Large-Cap Large- Cap Mid-Cap International Large- Cap
7 30 7 12 28 6 13 19 29 3
Credit Risk G-Sec G-Sec Gold International Corporate Bond G-Sec International Large-Cap Corporate Bond
7 17 7 11 19 5 12 15 22 3
Corporate Bond Credit Risk Small- Cap Real Estate Credit Risk Credit Risk Corporate Bond Large-Cap Credit Risk T-Bill
6 14 6 10 8 5 10 15 9 3
T-Bill Corporate Bond T-Bill International Corporate Bond Real Estate Credit Risk G-Sec Corporate Bond G –Sec
6 13 5 10 7 5 8 13 5 2
G-Sec Real Estate Real Estate Mid-Cap Real Estate T-Bill T-Bill Corporate Bond Real Estate Real Estate
2 12 5 8 6 4 4 12 3 2
Mid-Cap International International T-Bill Gold International Real Estate Credit Risk G-Sec Mid-Cap
-6 11 -1 5 6 6 4 11 2 -2.2
Small-Cap T-Bill Large-Cap Large-Cap T-Bill Mid-Cap Mid-Cap T-Bill T-Bill Small-Cap
-10 6 -5 2 4 -13 -4 3 2 -7.5
Gold Gold Gold Small-Cap G-Sec Small-Cap Small-Cap Real Estate Gold International
-18 2 -8 2 2 -24 -9 1 -3 -10

International Large-Cap Mid-Cap Small-Cap Credit Risk Real Estate Corporate Bond Gold G-Sec T-Bill

Winners keep rotating  Every year each asset class behaves differently  Important to diversify across asset categories
T-Bill treasury bills; G-secs government securities. For large-cap, we have used S&P BSE Sensex data; For mid-cap S&P BSE Midcap data; For small-cap, S&P BSE Smallcap data; For T-Bills, CCIL T-Bill Liquidity Weight data; For G-secs, CCIL, All Sovereign
Bond Index Data; For corporate bonds; Crisil Corporate Bond Composite Index data; For credit risk, Crisil Composite Credit Risk Data; For international S&P 500 in USD; For gold, prices as per World Gold Council; For real estate, RBI House Price Index

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available only up to Q2 of FY2022-23(9 –month return). Returns as of 23 Dec 2022.
Classification -

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INSTITUTIONALIZED APPROACH TO WEALTH MANAGEMENT

Product Selection Framework Service First Approach

• Screening Mutual Funds on quantitative and qualitative
parameters basis our in-house FAMA Model
• Wealth Product Approval Committee (WPAC) – Third
Party audited model framework for Alternate product
selection
 Focus on building dedicated service team to cater to all
financial needs
 Quarterly Portfolio Reviews by Wealth Relationship Managers for
regular interventions according to market movements and
customer’s requirements

Asset Allocation Philosophy

• Curated asset allocation basis client's risk profile and
Holistic Offering across Segments
client suitability  Relationship Manager led Wealth Offering along with Digital
platform for Super Affluent & Ultra HNI Customers
• Dynamic review of overall asset allocation and product
 State-of-the-art Digital Platform for Mass Affluent
suitability basis changes in client's risk profile and/or
Customers to be rolled out by Q1 FY’24
financial goals

8
 Classification -

INVESTMENT PROPOSAL

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Portfolio Allocation

Allocation % Performance as on

Asset Class Category Scheme Names (Rs. Lakhs) Weight Returns as on 14/03/2023

1Y 2Y 3Y 5Y
Large & Mid Cap Fund HDFC Large and Mid Cap Fund 60 10% 7.5 12.5 26.8 11.8
Large Cap Fund Kotak Bluechip Fund 60 10% 3.2 6.8 19.9 10.7
Large Cap Fund ICICI Prudential Bluechip Fund 90 15% 4.3 9.7 22.1 10.9
Multi Cap Fund Nippon India Multi Cap Fund 60 10% 12.6 16.9 26.2 11.8
Equi

75%
ty

Portfolio Management Scheme ICICI Pru Contra PMS 60 10% 8.2 17.73 25.03 -
Focussed Fund HDFC Focussed 30 Fund 30 5% 16.1 19.3 28.3 10.2
Contra Fund SBI Contra Fund 60 10% 15.3 19.9 37.3 14.2
Dynamic Asset Allocation Tata Balanced Advantage Fund 30 5% 4.44 6.82 13.82 -
Ultra Short Duration Fund Aditya Birla Sun Life Corporate Bond Fund 30 5% 4.84 4.97 6.58 7.31

Index Funds Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund 30 5% 2.87 - - -
Debt
20%

Fixed Deposit HDFC Bank Fixed Deposit 30 5% - - - -

Fixed Deposit HDFC Bank Fixed Deposit 30 5% - - - -
Gold
5%

FoF - Domestic Kotak Gold Fund 30 5% 12.39 12.77 10.14 12.83

Total Investment 600 100% 8.3 12.8 21.6 11.2

ICICI Pru Contra PMS Returns are as on 28th Feb 2023.

Wealth Classification - 10
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MARKET UPDATE

Wealth
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Classification - Internal
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EQUITY OUTLOOK
• Indian equities ended the month of January 2023 on a negative note. S&P BSE Sensex index and Nifty 50 index closed lower by 2.1% MoM and 2.5% MoM, respectively.
The S&P BSE Midcap index and S&P BSE Small cap index witnessed a dip by 2.7% MoM and 2.5% MoM, respectively.
• On the BSE sectoral indices front, Auto, IT and Industrials indices ended the month on a positive note. In contrast, Utilities, Power and Energy witnessed the steepest
declines.S&P BSE Sensex is trading at 22x of FY23E Bloomberg consensus EPS. Despite the cuts in the earnings estimates, the key large cap indices have hit all time highs,
pushing the valuations higher.
• During the month, Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 68 bn, whereas Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 180
bn.

Equity Indices Performance – Dec 2022 BSE Sensex Price Earning (PE) 1 year forward

Nifty 50 forward Estimate Trend

Trend for Equity Investments by FPIs and DIIs (Rs
Bn)

• We expect the return expectations over 2-3 year period to be in line with earnings growth. However, with slowing global growth, future earnings potential would remain a key
monitorable. We continue to maintain an investment deployment strategy of 50% lumpsum and rest 50% to be staggered over the next 3-4 months. Investors should focus on their
Asset allocation and any positive skewness toward equity markets needs to be corrected, given the richness in the valuations. Investors could focus on Large Cap, Large & Midcap,
Multicap, Value, Hybrid Equity funds as portfolio core, in line with their risk profile and product suitability.

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FIXED INCOME OUTLOOK

• The Budget proposals have come in as a shot in the arm for the bond market. With Fiscal deficit projections for FY24BE at 5.9% which was in line with market expectations. The
market borrowing numbers were also marginally lower than estimates as fund raising from small savings has been moved up due to recent up move in the small savings rate.
• G-sec Yield Curve shifted lower & steepened marginally a few points, which led to narrowing of Term Spreads in some tenors.
• Despite of growth slowdown and possibility to further impact on economic growth due to tight monetary policies, major global central banks have shown strong intent of decisively
bringing the elevated inflation down to their respective target range. Thus, while the rate hike pace could be smaller, interest rates globally are likely to remain elevated for the global
central banks to control the inflation expectations.

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• The yield curve has steepened marginally in the 3-7 year segment, after post budget rally in the bond market. Going forward, liquidity conditions could have implication on the yield
curve. If the liquidity conditions continue to remain tight, the yield curve could again flatten, albeit at lower yield levels. However tightening liquidity conditions could also lead to
elevated corporate bond spreads.
• Given the gradual steepening that we have witnessed post the budget, one can remain invested across the yield curve depending on their investment horizons.

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INVESTMENT STRATEGY
We continue to maintain an investment deployment strategy of 50% lumpsum and rest 50% to be staggered over the next 3-4 months. Investors should focus on their Asset allocation
Equity Strategy Investors could focus on Large Cap, Large & Midcap, Multicap, Value, Hybrid Equity funds as portfolio core.

• Given the gradual steepening that we have witnessed post the budget, one can remain invested across the yield curve depending on their investment horizons. Thus,
investors can look at Short Duration Funds for a horizon of 12 months and above.
• Given the rise in corporate bond spreads, investors can also start looking at Corporate Bond Funds and Banking and PSU Funds for a horizon of 15 months and above. For
investors looking for accrual strategies, they can consider Target Maturity Index Funds with maturities from 3-10 years, that invest in a mix of better quality bonds with
Fixed Income investment horizons matching the maturity of the funds
Strategy • Investors who are comfortable with volatility and have a longer investment horizon could look at Dynamic Bonds for a horizon of 24 months and above.
• For a horizon of 3 months and above Arbitrage can be considered. Whereas, for a horizon of up to 3 months investors can consider Overnight Funds and Liquid Funds.
• Investors should invest in line with their risk profile and product suitability.

Recommended Categories – Fixed Income Recommended Categories – Equity

>24 months >15 months > 12 months > 3 months Up to 3 months

Core Portfolio (50%) Investment via SIP / STP (50%)

Short Duration Funds / Money Market Funds / Ultra Short Duration / Low Duration Funds
c Bond Funds,Corporate
Target Maturity
Bond Funds
Index/ Funds
Banking & PSU Debt Funds
Overnight Funds / Liquid Funds Large Cap / Large & Mid Cap / Multi Cap / Value / Hybrid Equity
Arbitrage Funds

Investors could focus on these categories with the horizon for 2-3 years, in line with
their risk profile and product suitability in equities.

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 Classification -

GLOBAL INVESTING

The benefits of investing in global assets are : Global investing platform offers:

Diversification : Investments in developed markets insulates an investor Simplified and digital on boarding
from India-specific shocks (political and economic) and acts as a hedging
tool against by combining asset classes that are less correlated Investment intelligence from sources such as analyst reports, regulatory
filings and social media
Currency Movement : Benefit from domestic currency depreciation as an
$ appreciating dollar would further increase fund returns to global investors. Insurance protection of the securities and cash in your account up to $ 500,000
The INR has depreciated 4.2% on average against the dollar over the past
decade. Thematic investments

Massive Opportunity: India’s equity market capitalisation is barely 3 per Fractional share purchases
cent of the world equity market and it ranks seventh in size. The US market,
on the other hand, accounts for 38.7 per cent of global equity market No minimum investment restrictions
capitalisation.

Access to Themes : Investing abroad will give Indian investors the

opportunity to not only invest in the stocks of a large number of
multinational giants but also themes and sectors that are not listed in India

Kindly note: HDFC Securities has tied up with Stockal Inc to offer global investing on purely referral
arrangement and no direct advise will be provided on selection of the securities / portfolio by HDFC
Team. Further, no stock specific advice is given w.r.t US securities

Note: These products are offered via referral through our Group entity - HDFC Securities Limited. None of the above should be construed as advise. The details are being shared
W eofathe
on the specific request l t investor and the decision to invest solely lies with the investor. 1
 Classification -

ESTATE AND SUCCESSION PLANNING

• Estate and Succession
WhatPlanning essentially
is Estate and Succession • A lot of investors believeWays of Estate
that nomination andPlanning
joint ownership is a way of estate
means to decide how your estate will devolve planning. However, both these means are usually ineffective and legally disputable,
upon your loved ones post your demise. Create since both are superseded by succession laws.
Wealth
• Estate and Succession Planning is the framework Next • Important vehicles for effective estate planning are Wills and Trusts.
Asset
consisting of a formal investment vehicle and Generation Protection
governance structure through which a family’s
wealth is administered Wills Trusts
Transfer Preserve
• Crafting a strategic and effective wealth Wealth Wealth
• It is a legal document that comes into • A Trust is a legal fiduciary
preservation and transition plan will help
effect on demise of an individual. arrangement that allows you to set
ensure that the wealth creator’s vision Succession Planning
• It is the most convenient way to ensure up your assets to be held and managed
becomes a reality for current and future family
smooth transmission of wealth to the by a third party (Trustee).
members.
beneficiaries. • Trusts can be created anytime, provides
Importance of Estate Planning /Succession Planning different structures and lives alongside
• Will can be made by individuals and has
Why is Estate Planning necessary: no legal validity until their demise. an individual.
• Avoids any disputes within or outside the family • Will does not help manage individual's • Trusts can be arranged in various
• Avoids any transmission loss and provides liquidity upon demise assets when he/she is incapacitated, ways and can specify exactly how and
• Ring fence personal assets to avoid claims / litigations in the future owing to old age, illness or injury. when the assets pass to the
beneficiaries.
• Ensure smooth distribution of wealth as per your desires rather than any statutory • Will can be modified/revoked during the
disposition life time of an individual
• Safeguard interests of dependents and an opportunity to assign guardians for
minors and incapacitate beneficiaries Estate & Succession Planning is provided through Vistra ITCL (India) Ltd. Vistra ITCL (India) Ltd.
and is offered via referral through our Group entity - HDFC Securities Limited.
• Inheritance tax planning

Note: These products are offered via referral through our Group entity - HDFC Securities Limited. None of the above should be construed as advise. The details are being shared
W eofathe
on the specific request l t investor and the decision to invest solely lies with the investor. 1
 Classification -

DISCLAIMER

This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. HDFC Bank Limited ("HDFC Bank") does not warrant its
completeness and accuracy. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument / units of Mutual Fund. Recipients of this information should rely on their own
investigations and take their own professional advice. Neither HDFC Bank nor any of its employees shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including
lost profits arising in any way from the information contained in this material. HDFC Bank and its affiliates, officers, directors, key managerial persons and employees, including persons involved in the preparation or
issuance of this material may, from time to time, have investments / positions in Mutual Funds / schemes referred in the document. HDFC Bank may at any time solicit or provide commercial banking, credit or other
services to the Mutual Funds / AMCs referred to herein.

Accordingly, information may be available to HDFC Bank, which is not reflected in this material, and HDFC Bank may have acted upon or used the information prior to, or immediately following its publication. HDFC
Bank neither guarantees nor makes any representations or warranties, express or implied, with respect to the fairness, correctness, accuracy, adequacy, reasonableness, viability for any particular purpose or
completeness of the information and views. Further, HDFC Bank disclaims all liability in relation to use of data or information used in this report which is sourced from third parties.

HDFC Bank House, 1 st Floor, C.S. No. 6 \ 242, Senapati Bapat Marg, Lower Parel, Mumbai 400 013. Phone: (91)-22-66527100, ext 7111, Fax: (91)-22-24900983 \ 24900858

HDFC Bank is a AMFI-registered Mutual Fund Distributor & a Corporate Agent for Insurance products. PMS and AIF are non-distribution products which are offered on referral through
HDFC Securities Ltd.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.

HDFC Bank Limited (IRDAI Registration No: CA0010) is the Corporate Agent of the Insurance products and does not underwrite the risk or act as an insurer. HDFC Bank Limited, HDFC
Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013. Participation by the Bank’s clients in the Insurance products is purely on a voluntary basis. The contract of
Insurance is between the Insurance company and the Insured and not between HDFC Bank and the Insured. This policy is underwritten by respective Insurance companies.

This note has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure. Neither this note nor any of its contents maybe used for any other
purpose without the prior written consent of HDFC Bank Ltd. in preparing this note, we have relied upon and assumed, without any independent verification, the accuracy and completeness of all information available
from public sources or which was otherwise reviewed by us. This note contains certain assumptions, which HDFC Bank Ltd. considers reasonable at this time and our views as of this date and are accordingly subject to
change. Computations adopted in this note are indicative and are based on current prevailing market prices and general market sentiment. No representation or warranty is given by HDFC Bank Ltd. as to the
achievement or reasonableness or completeness of any idea and/or assumptions. This note does not purport to contain all the information that the recipient may require. Recipients should not construe any of the contents
herein as advice relating to business, financial, legal, taxation, or investment matters and are advised to consult their own business, financial, legal, taxation and other advisors concerning the company. This note does
not constitute an offer for sale, or an invitation to subscribe for, or purchase equity shares or other assets or securities of the company and the information contained herein shall not form the basis of any contract. It is
also not meant to be or to constitute any offer for any transaction.

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 Classification - Public

THANK YOU
Wealth