choose a goal and stick to it! -...

Everything else falls in place

Choose a goaland stick to it! Choose a goaland stick to it!

SPARE A THOUGHT OVER YOUR INVESTMENT DECISIONS

Are your investments aligned to any of your short term or long

term investment needs?

Do they typically reflect your choice or opinion at that

particular point of time?

Do you plunge into an investment if you find the crowd rooting for it or because it out-performed its peer

group over the last one year?

Are you tempted to give up on your investments and redeem

every time you witness volatility in the market?

Ad-hoc investing is a major trap, which might lead you to a lop-sided portfolio.

PERFORMANCE TRACKING IS NOT ONLY ABOUT MEASURING RETURNSAsk the question about whether your investments are on trackto achieve your goals. You’ll probably hear how your mutual fund has performed.

While it is possible that your investment may be successful in beating the market, but you might not be able to save enough for your retirement, send your kids abroad for education, start your own business, or make the down-payment for a new home.

That’s what really matters to you!

Does this tell you whether you will meet your goals at the end of your horizon?

Meeting your goals is the ultimate way of judging how well your investments performed.

GOALS AND ENVELOPESThings have gotten a little bit more sophisticated over time, but the time-honored ‘envelope system’ is the same idea behind the growing trend of goals-based investing.

Each goal, because it has a unique time horizon, must have its own asset allocation and risk profile.

Similarly, each of your financial goals are funded and invested independently.

Every payday, you peel off a little cash and deposit it in your envelopes, slowly contributing to your goals.

The idea is to save for your goals using a series of envelopes.

A down payment for a home

Your retirement corpus

Your children’s higher education

Start your own business

UNIQUE GOALS REQUIRE UNIQUE INVESTMENT APPROACH

Goal-based investment approach matches your time horizon to your asset allocation, which means you take on the optimum amount of risk.

When you misallocate, it can mean saving too much or too little, missing out on returns with too conservative a setting, or missing your

goal if you take on too much risk.

Your portfolio should not be governed by market movements, but by asset allocation.

Each portfolio can differ from the others, based on the type of goal you want to achieve and the time to goal.

WE TARGET GETTING TO YOUR GOALS(GOAL-BASED SOLUTIONS)

HDFC Mutual Fund understands that specific needs require specific solutions and therefore offers the following goal-based solutions:

HDFC Retirement Savings FundGenerate a corpus to provide for pension in the form of income after the age of 60 years.

HDFC Children’s Gift FundSave for your child’s needs (wedding, higher education) as he/she grows up.

Choose from Savings Plan and Investment Plan depending on the time you have and your risk tolerance

Personal accident cover for the parent of value upto Rs.10 lakh

1

2

HDFC Mutual Fund is aware of your two most important life goals – saving for children and for your retirement – and has solutions for both.

Tax benefit u/s 80C

Choose from three plans: Equity, Hybrid - Equity, Hybrid - Debt depending on your age and risk tolerance

HDFC CHILDREN’S GIFT FUNDSavings Plan has a higher proportion of debt. It is suitable if your child is older and in other words, you have a shorter investment horizon. You

cannot afford to take the risk of volatility in your portfolio.

A small equity exposure keeps your portfolio value stable while ensuring that your returns are not affected by inflation.

HDFC Children’s Gift Fund allows you to choose a professionally-managed plan depending upon your investment horizon.

Investment plan has a higher proportion of equity. It is suitable if your child is younger, which means you have a longer investment horizon. This merits a higher

exposure to equity, which allows your investment to grow over the long term.

20%

75%

EQUITY DEBT

HDFC RETIREMENT SAVINGS FUNDHDFC Retirement Savings Fund offers three different plans to suit

investors of different age groups and risk profiles:

After completion of the lock-in period, you may switch from one plan to another without any exit loads. This takes care of your

changing risk profile as you grow older.

HDFC Retirement Savings Fund provides you the option to save for your retirement in a professionally managed portfolio, depending upon your risk appetite.

Max. Allocation to Equity Debt

EQUITY PLAN

100%

HYBRID-EQUITY PLAN

80%20%

HYBRID-DEBT PLAN 30%

70%

AN SIP FOR EACH GOAL

By combining systematic and goal-based investing, you get to invest bit by bit directly towards your stated goals, with discipline and commitment.

So you do agree that you must plan your investments with a goal in mind, but are wondering how you should execute it. You may be getting intimidated as you unravel those big goal amounts. Well, the

solution is quite simple really. All you need is to get started with SIPs (Systematic Investment Plan). This might do the trick for you!

Set aside small amounts every month by setting up SIPs for your respective goals. The sooner you start, the better. You not only get to save more, but also get more time for your money to grow.

If you are wondering what kind of corpus you can accumulate by investing small amounts every month, see this:

Value of Rs. 1000 invested every month for 30 yrs

1,60,00,000

1,40,00,000

1,20,00,000

1,00,00,000

80,00,000

60,00,000

40,00,000

20,00,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

If you got a return of 20% p.a.



Rs. 21 lakh

Rs. 56 lakh

Rs. 1.57 cr

No. of Years

The above are assumed rates of return showing approximate values only to explain the concept of Power of Compounding. They do not depict, forecast or guarantee the returns given by any mutual fund scheme.

You can also achieve your goal earlier by using SIP-Top up facility.As your income increases - Increase your SIP amount.

TARGET GOALS AND NOT RETURNS

When you can attach a real outcome to the purpose of your saving, you’re more likely to work towards that goal rather than blind saving. Absolute

returns or even comparison to a benchmark does not matter. Instead, tracking your progress towards your goal is far more relevant.

When you save for a tangible outcome, you’re more likely to achieve each of your goals.

At the end of your life, saying “I beat the Sensex by 15%” may not mean anything!

But if you say,

NOW, THAT'S SOMETHING TO CHERISH!

“I invested well, I managed to retire comfortably and my kids

went to a good college”

ASSET ALLOCATION

Load Structure Lock-in period Units purchased cannot be assigned/transferred/pledged/redeemed/ switched out until completion of 5 years from the date of allotment of units under the Scheme. Upon completion of lock-in period, subsequent switches of units within the Scheme shall not be subject to a further lock-in period. The Trustee/AMC reserves the right to change, the lock-in period at a later date on a prospective basis. The same may affect the interest of unit holders and will tantamount to a change in the fundamental attributes of the Scheme.

Tax BenefitsThe investments made in the Scheme will be eligible for tax benefit under Section 80C of the Income-tax Act, 1961.

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 (Upon completion of lock-in period of 5 years):• In respect of each purchase / switch-in of units, an exit load of 1.00% is payable if units are redeemed / switched–out before completion of 60 years of age.• No exit load is payable if units are redeemed / switched–out after completion of 60 years of age.• Exit load will not be applicable for switches between investment plans and plans/option within the scheme post lock-in period.

Lock-in Period (if opted): Until the Unit holder (being the beneficiary child) attains the age of 18 years or until completion of 3 years from date of allotment, whichever is later.

Eligibility (of Unit holder):Children less than 18 years of age as on the date of investment by the Investor/Applicant.

Personal Accident Insurance Cover:Personal Accident Insurance Cover for Parent/Legal Guardian (up to the age of 80 years) of the Unit holder, equivalent to 10 times the cost value of the outstanding Units held by the Unit holder under all the applications/ account statements/folios, subject to a maximum amount of Rs.10 lakhs per Unit holder. The Insurance cover will commence from the date of allotment of Units till the Unit holder attains 18 years of age or till such date as the Units are redeemed in accordance with the terms and conditions stated in the Scheme Information Document, whichever is earlier.

For further details, please refer to the Scheme Information Document.

0 20 High

Minimum Allocation(% of net assets)

Maximum Allocation Risk Profile

80 100 Low to Medium

Instruments

Equity and Equity linked instruments

Debt securities and money market instruments (including cash/CBLO/Reverse Repo and securitised debt)

HDFC Children’s Gift Fund - Savings Plan (Debt Oriented) An Open-ended Balanced Scheme

HDFC Retirement Savings Fund - (An open-ended notified tax savings cum pension scheme with no assured returns) A fund with a 5 year lock-in

80 100 Medium to High

Minimum Allocation (% of net assets) Maximum Allocation (% of net assets) Risk Profile

0 20 Low to Medium

Types of Instruments#

Equity & equity-related instruments

Debt and money market instruments

Equity Plan

HDFC Children’s Gift Fund - Investment Plan (Equity Oriented) An Open-ended Balanced Scheme

40 75 High

Minimum Allocation(% of net assets)

Maximum Allocation Risk Profile

25 60 Low to Medium

Instruments

Equity and Equity linked instruments

Debt securities and money market instruments**Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the Scheme.

Load StructureEntry Load - Not Applicable.Exit Load • For Units subject to Lock-in Period: NIL• For Units not subject to Lock-in Period:

3% if the Units are redeemed/switched out within one year from the date of allotment2% if the Units are redeemed/switched out between the first and second year of the date of allotment1% if the Units are redeemed/switched out between the second and third year of the date of allotmentNil if the Units are redeemed/switched out after third year from the date of allotment

• No entry/exit load shall be levied on bonus units

Hybrid - Equity Plan

60 80 Medium to High

Minimum Allocation (% of net assets) Risk Profile

20 40 Low to Medium




Maximum Allocation (% of net assets)

Hybrid - Debt Plan

70 95 Low to Medium

Minimum Allocation (% of net assets) Risk Profile

5 30 Medium to High




Maximum Allocation (% of net assets)

# Plans intend to seek investment opportunity in ADRs/GDRs/Foreign Securities at a maximum of 35% of its net assets. The maximum derivative position will be restricted to 20% of the net assets (i.e. Net Assets including cash) of the respective investment plan(s). For further details, refer SID/KIM.

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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

HDFC Retirement Savings Fund – Equity Plan

HDFC Retirement Savings Fund – Hybrid-Equity Plan

HDFC Retirement Savings Fund – Hybrid-Debt Plan

A corpus to provide for pension in the form of income to the extent of the redemption value of their holding after the age of 60 years

Investment predominantly in equity and equity-relatedinstruments

Investment predominantlyin equity and equity-relatedinstruments with balance indebt and money marketinstruments

Investment predominantly indebt and money market instruments with balance inequity and equity-relatedinstruments

Name of Scheme/Investment Plan

This product is suitable for investors who are seeking*:

Riskometer

PRODUCT LABELLING

HDFC Children’s Gift Fund -Savings Plan (Debt Oriented)

Riskometer

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Capital appreciation over long term.

Investment in equity and equity-related instruments as well as debt and money market instruments.

Capital appreciation over medium to long term.

Investment in debt and money market instruments as well as equity and equity-related instruments

HDFC Children’s Gift Fund -Investment Plan (Equity Oriented)

This product is suitable for investors who are seeking*:Name of Scheme / Plan

For more details, please contact your Financial Advisor or give a missed call at 92218 12345.

choose a goal and stick to it! -...

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