(An open ended hybrid scheme investing predominantly in

equity and equity related instruments)

About the facility

SMART SWAP facility: SMART SWAP is a facility wherein investors can realize regular cash flow in a
tax efficient manner. SMART SWAP allows investors to withdraw a specific percentage of a decided
corpus at regular intervals, subject to the terms and conditions of SMART SWAP.

The investors have to decide on the following for registering SMART SWAP:-

(a) Specified Amount;

(b) Frequency & Tenure; and

(c) Percentage of Withdrawal per annum

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To decide on 3 Things

• “Specified Amount” is the amount specified by the investor on which the

Specified Amount “Percentage of Withdrawal per annum” will be applied. The Specified
Amount shall not be less than Rs.1 lakh.

• SMART SWAP amount per annum will be fixed at 7%, 8% or 9% of the

Specified Amount as indicated by the investor.
Percentage of
Withdrawal (p.a) • In case percentage of withdrawal per annum is not selected/not
legible/not clear, 8% p.a will be default percentage of withdrawal per
annum.

• Under this facility investors can opt to withdraw their investments

systematically on a Monthly/Quarterly basis.
Frequency & Tenure
• In case frequency of withdrawal is not selected/not legible/not clear,
monthly frequency will be default frequency of withdrawal.

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Advantages of opting for SMART SWAP:

$ Information given herein is as per prevailing tax laws, which may change from time time. In view of individual nature of circumstances, investors are advised to consult
their professional advisors.

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Sample Form

Enter Investors Details

Select Preferred
Option - a

Enter Details

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SMART SWAP vs. Dividend Distribution

Dividend distribution is subject to availability of distributable surplus whereas specified amount can
be withdrawn under SMART SWAP.

The amount of dividend may fluctuate as per the quantum of distributable surplus. Whereas, in the
SMART SWAP, as the frequency and percentage of the withdrawal is pre-determined, the investor will
get a defined cash flow periodically.

This will help in efficient financial planning and tax efficient way.

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Illustration of how SMART SWAP works in HDFC Hybrid Equity Fund

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Tax efficient option

SMART SWAP – A Tax Efficient

Option
SMART SWAP After The First Year
SMART SWAP In The First Year Of
Of Investment
Investment
Long Term Capital Gains (LTCG) tax @
Short Term Capital Gains (STCG) gains 10% plus applicable
tax at 15%
cess and surcharge only on the gains
plus applicable cess and surcharge made, subject to
only on the
exemption# of Rs. 1 lakh for the
gains made. financial year.

# Exemption of Rs. 1 lakh includes LTCG on transfer of equity share in a company or a unit of an equity oriented fund or a unit of a business trust.
$ Information given herein is as per prevailing tax laws, which may change from time time. In view of individual nature of circumstances, investors are
advised to consult their professional advisors.
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SMART SWAP in HDFC Hybrid Equity Fund

• HDFC Hybrid Equity Fund targets returns greater than debt schemes with lower
volatility than equity schemes.

• The scheme has exposure ranging between 65% and 80% in equities and the rest in
debt.

• It provides growth of equity with stability of debt.

• It is suitable for investors with investment horizon of 3 or more years.

If you decide to opt for this facility, you should be aware of the possibility that you could erode your capital.
Refer to the terms and conditions of this facility in the SMART SWAP Form available on the website www.hdfcfund.com

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Disclaimer & Risk Factors

This presentation dated 7th October, 2019 has been prepared by HDFC Asset Management Company Limited (HDFC
AMC) 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. 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 above are illustrative and not recommended by
HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these sectors. The above
has been prepared on the basis of information which is already available in publicly accessible media. The above should
not be construed as an investment advice or a research report or a recommendation by HDFC Mutual Fund/HDFC AMC
to buy or sell the stock or any other security covered under the respective sector/s. Past performance may or may not
be sustained in future. Neither HDFC AMC and HDFC Mutual 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. For complete portfolio/details refer to our
website www.hdfcfund.com

Mutual fund investments are subject to market risks, read all scheme
related documents carefully.

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Thank You

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