Investment Objective

To seek long-term capital appreciation by investing predominantly in equity and equity related securities of
companies engaged in or expected to benefit from growth and development of infrastructure.

Basic Scheme Information

Nature of Scheme Close Ended Equity Scheme with a maturity period of 3 years from the date
of allotment with automatic conversion into an open-ended scheme upon
maturity of the Scheme.
Inception Date March 10, 2008
Option/Plan Dividend Option, Growth Option. Dividend Option currently offers with
payout facility only
Entry Load NIL

Exit Load Nil.

(as a % of the Applicable NAV)
(Other than Systematic Investment
Plan (SIP)/ Systematic Transfer Plan
(STP))
• Initial Issue Expenses not exceeding 6.00% incurred by the
Mutual Fund will be charged to the Scheme and will be amortised
over a period of three years.
• Actual expenses incurred in respect of Initial Issue Expenses in
excess of 6% as indicated above shall be borne by the AMC / the
Trustee Company.
• Pursuant to SEBI Circular Ref. SEBI / MFD / CIR No. 1/64057/06
dated April 4, 2006, the balance proportionate unamortised issue
expenses will be recovered from the Unitholder if an Unitholder
exits the scheme before the amortisation of NFO expenses is
completed.

No Exit Load shall be levied on bonus units and units allotted on

Specified Redemption Period
Minimum Application Amount
(Other than Systematic Investment
Plan (SIP)/ Systematic Transfer Plan
(STP))
Lock-In-Period
Net Asset Value Periodicity
Redemption Proceeds
Tax Benefits
(As per present Laws)
Current Expense Ratio (#)
(Effective Date 22nd May 2009)
(#) Any change in the expense ratio will be updated within two working days.
dividend reinvestment.
The Scheme will offer for redemption/switch-out of units on an ongoing
basis during the Specified Redemption Period. Presently, the Specified
Redemption Period is the first two Business Days of each calendar month.
Currently no purchases/ switch-ins are allowed into this scheme.
Nil.
Every Business Day.
Within 10 working days.
Please click for details
On the first 100 crores average weekly net assets 2.50%
On the next 300 crores average weekly net assets 2.25%
On the next 300 crores average weekly net assets 2.00%
On the balance of the assets 1.75%

Plan Name NAV Date NAV Amount

Growth Option 31 Jan 2010 -
Dividend Option 31 Jan 2010 -
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Investment Pattern
The asset allocation under the respective Plans will be as follows:
Type of Instruments Minimum Allocation (% Maximum Allocation(% Risk Profile of the Instrument
of Net Assets) of Net Assets)
Equity and Equity Related 65% 100% Medium to High
Instruments of infrastructure /
infrastructure related companies
Equity and Equity Related 0% 35% Medium to High
Instruments of companies other than
mentioned above
Debt Securities and Money Market 0% 35% Low to Medium
Instruments* and Fixed Income
Derivative ;

* Investments in securitised debt shall not normally exceed 30% of the net assets of the Scheme. The Scheme
may seek investment opportunity in Foreign Securities (max. 35% of net assets). The Scheme may take
derivatives position for hedging, portfolio balancing or to undertake any other strategy as permitted under SEBI
Regulations from time to time (max. 20% of the net assets) based on the opportunities available subject to SEBI
Regulations.
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Investment Strategy
The Scheme shall invest predominantly in equity and equity related securities of companies engaged in or
expected to benefit from the growth and development of infrastructure.
The Scheme shall invest in the following indicative list of sectors/industries:

• Airports
• Banking and Financial Services
• Cement and Cement Products
• Construction and related industries
• Electrical and Electronic Components
• Energy
• Engineering
• Metals/Mining/Minerals
• Housing and related industries
• Industrial Capital Goods
• Industrial Products
• Oil & Gas and allied industries
• Petroleum and related industries
• Ports
• Power and Power Equipment
• Telecom
• Urban Infrastructure including Transportation, Water, etc.

The Scheme shall invest across the above-mentioned sectors or other areas of infrastructure as identified by the
Fund Manager.

Please note that the above list is only indicative and not exhaustive and this could undergo changes based on the
future reforms and developments. The Fund Manager may add such other sector/group of industries which broadly
satisfy the category of services and infrastructure industries.

The scheme may also invest upto 35% of the fund in noninfrastructure related companies. The Scheme shall
invest across all market capitalization.
The balance, if any, will be invested in Debt or Money Market Instruments and Fixed Income Derivative, including
securitised debt.

Though every endeavor will be made to achieve the objectives of the Scheme, the AMC/Sponsors/Trustees
do not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are
being offered under the Scheme.

The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds,
provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI
Regulations. As per the SEBI Regulations, no investment management fees will be charged for such investments
and the aggregate inter scheme investment made by all the schemes of HDFC Mutual Fund or in the schemes of
other mutual funds shall not exceed 5% of the net asset value of the HDFC Mutual Fund.

The Scheme may also invest in suitable investment avenues in overseas financial markets for the purpose of
diversification, commensurate with the Scheme objectives and subject to necessary stipulations by SEBI / RBI.
Towards this end, the Mutual Fund may also appoint overseas investment advisors and other service providers, as
and when permissible under the regulations.

• Debt Investments

The Scheme will retain the flexibility to invest in the entire range of debt securities and money market
instruments. These instruments are more specifically highlighted below: Debt securities (in the form of
non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds,
floating rate bond / notes, securitised debt, pass through certificates, asset backed securities, mortgage
backed securities and any other domestic fixed income securities including structured obligations etc.)
include, but are not limited to:

o Debt obligations of the Government of India, State and local Governments, Government
Agencies and statutory bodies (which may or may not carry a state / central government
guarantee),
o Securities that have been guaranteed by Government of India and State Governments,
o Securities issued by Corporate Entities (Public / Private sector undertakings),
o Securities issued by Public / Private sector banks and development financial institutions.

• Money Market Instruments include

o Commercial papers
o Commercial bills
o Treasury bills
o Government securities having an unexpired maturity upto one year
o Collaterlised Borrowing & Lending Obligation (CBLO)
o Certificate of deposit
o Usance bills
o Permitted securities under a repo / reverse repo agreement
o Any other like instruments as may be permitted by RBI / SEBI from time to time

Investments will be made through secondary market purchases, initial public offers, other public offers, placements
and right offers (including renunciation). The securities could be listed, unlisted, privately placed, secured /
unsecured, rated / unrated of any maturity.

The AMC retains the flexibility to invest across all the securities / instruments in debt and money market.
Investment in debt securities will usually be in instruments which have been assessed as .high investment grade.
by at least one credit rating agency authorised to carry out such activity under the applicable regulations. Pursuant
to SEBI Circular No. MFD/ CIR/9/120/2000 dated November 24, 2000, the AMC may constitute committee(s) to
approve proposals for investments in unrated debt instruments. The AMC Board and the Trustee shall approve the
detailed parameters for such investments. The details of such investments would be communicated by the AMC to
the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have
been complied with. However, in case any unrated debt security does not fall under the parameters, the prior
approval of Board of AMC and Trustee shall be sought. Investment in debt instruments shall generally have a low
risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of
debt instruments will be selected in accordance with the AMC.s view regarding current market conditions, interest
rate outlook and the stability of ratings.

RISK CONTROL
Investments made from the net assets of the Scheme would be in accordance with the investment objective of the
Scheme and the provisions of the SEBI Regulations. The AMC will strive to achieve the investment objective by
way of a judicious portfolio mix comprising of Debt Securities and Money Market Instruments and equity / equity
related instruments. Every investment opportunity in Debt Securities and Money Market Instruments would be
assessed with regard to credit risk, interest rate risk and liquidity risk.

Credit Risk
A detailed credit evaluation of each investment opportunity will be undertaken. The AMC will utilise ratings of
recognised rating agencies as an input in the decision making process. Investments in Debt Securities and Money
Market Instruments will usually be in instruments that have been assigned high investment grade ratings by a
recognised rating agency. In line with SEBI Circular No. MFD/CIR/9/120/ 2000 dated November 24, 2000, the
AMC may constitute committee(s) to approve proposals for investments in unrated instruments. The AMC Board
and the Trustee shall approve the detailed parameters for such investments. The details of such investments
would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in
the reports, how the parameters have been complied with. However, in case any security does not fall under the
parameters, the prior approval of Board of AMC and Trustee shall be sought.

Interest Rate Risk

An interest rate scenario analysis would be performed on an on-going basis, considering the impact of the
developments on the macro-economic front and the demand and supply of funds. Based on the above analysis,
the AMC would manage the investments of the Scheme on a dynamic basis to exploit emerging opportunities in
the investment universe and manage risks at all points in time.

Liquidity Risk
The AMC will attempt to reduce liquidity risk by investing in securities that would result in a staggered maturity
profile of the portfolio, investment in structured securities that provide easy liquidity and securities that have
reasonable secondary market activity. In the event of a requirement to liquidate all or a substantial part of these
investments in a very short duration of time, the AMC may not be able to realize the full value of these securities to
an adverse impact on the Net Asset Value of the Scheme. Please refer to clauses on "Right to Limit Redemption"
on Page 55 and "Suspension of Sale / Redemption / Switching Options of the Units", on Page 56.
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Fund Manager
Mr. Prashant Jain
Mr Srinivas Rao Ravuri
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Portfolio - Holdings (as on December 31, 2009)
Company / Issuer Industry+ % to NAV
EQUITY & EQUITY RELATED
State Bank of India Banks 9.27
ICICI Bank Ltd. Banks 7.66
IRB Infrastructure Developers Ltd. Transportation 7.34
Oil & Natural Gas Corporation Ltd. Oil 4.96
Crompton Greaves Ltd. Industrial Capital Goods 4.91
LIC Housing Finance Ltd. Finance 4.26
Bank of Baroda Banks 4.09
KEC International Ltd. Power 3.80
Sadbhav Engineering Ltd. Construction 3.25
Punj Lloyd Ltd. Construction Project 3.19
Total of Top Ten Equity Holdings 52.73
Total Equity & Equity Related Holdings 97.29
Total Money Market Instrument & Other Credit Exposures (aggregated 0.00
holdings in a single issuer)
Cash, Cash Equivalents and Net Current Assets 2.71
Grand Total 100.00
Net Assets (Rs. In Lakhs) 160280.30
Note : $ Sponsor
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Returns
HDFC Infrastructure (NAV as at evaluation date 31-December-09 , Rs. 11.049 Per unit)
Fund
Date Period NAV Per Unit (Rs.) Returns (%) ^Benchmark Returns (%) #
March 30, 2007 Last 1007 days N.A N.A. 12.28**
June 30, 2009 Last Six months (184 8.62 28.18* 24.77*
days)
December 31, 2008 Last 1 Year (365 days) 5.648 95.63*~ 88.57*~
December 29, 2006 Last 3 Years (1098 days) N.A N.A. 9.5**
December 31, 2004 Last 5 Years (1826 days) N.A N.A. 19.11**
December 30, 1999 Last 10 Years (3654 days) N.A N.A. 13.63**
March 10, 2008 Since Inception (661 days) 10.000 5.66** 5.52**

* Absolute Returns ** Compounded Annualised Returns

# S&P CNX 500
^ Past performance may or may not be sustained in the future