Tarakki Times English October 2017

A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS MUMBAI | OCTOBER 2017 | PAGES 12 Professional Views Second-level thinking and smart investmentPg. 2 decisionsEquity markets arealready up. Is theremore room togrow? S Naren, ED & CIO ICICI Prudential Mutual FundPg. 3Betting on the India storyFund ReviewsPg. 5ICICI Prudential Focused Bluechip The Economic Times | September 15, 2017Equity Fund Nimesh Shah to be improved by being uncon- virtues of second-level thinkingA top large-cap offering MD & CEO ventional.\" But moving on from which is multifaceted andPg. 6 ICICI Prudential Mutual Fund being a first-level thinker to the complicated. Howard Marks has second-level requires a lot of hard highlighted 'sixteen potentialICICI Prudential Value Discovery What's the difference between work and thinking. misconception' about markets,Fund 'ordinary' and 'extraordinary', or which have to be understood what's that separates a 'leader' Importance of second-level judiciously only through second-Prudent choice from a 'follower'? - It's the Second- thinking level thinking when considering Level Thinking, a rudimentary investment decisions, as first-Pg. 7 credence that's applicable When it comes to Second-Level level thinking can bamboozle in universally, including stock Thinking, investors need a wealth most cases.ICICI Prudential Balanced Fund market investing. First level of experience and thoughtful thinkers are the people who look contemplation for making appro- • The market is 'efficient,' mea-Diversified portfolio, for things that are simple and priate investment decisions. As ning asset prices reflect allconsistent outperformance defendable, whereas the second- Charlie Munger, said, \"It's not available information, and thus level thinkers push harder and supposed to be easy. Anyone pro vide accurate intrinsic value.Pg. 8 don't accept the first conclusion. who thinks it's easy, isn't thinking.\" • Because people are risk-averse,ICICI Prudential Long Term Plan According to legendary investor, First-level thinkers only perceive risky deals are discouraged. Howard Marks to think and and realise what's on the surfaceSafe choice for the risk-averse perform better than others in and respond to it simplistically, • Hence, market awards app- equity market investing is what is and consequently buy or sell ropriate risk premiums asOne Fund Review called Second-Level Thinking. based on market reactions. compensation for incremental However, one critical process of risk.ICICI Prudential Dynamic Plan In Second-Level Thinking, an making superior decisions is to investor's objective is to perform look at longer-term impact of the • Risky investments producePg. 9 better than average. Howard decision taken. high returns.One Fund Review Marks has highlighted two primary elements in superior Howard Marks have best • Adding risky assets to portfolioICICI Prudential Focused Bluechip investing. explained through numerous makes it risker.Equity Fund examples: First-level thinker: \"It's • Seeing value in investment as a good company; let's buy the • It's desirable that everything inICICI Prudential Balanced Fund set, which others don't see stock.\" Second-level thinker: \"It's a well-diversified portfolio per appreciate; and is not reflected good company, but everyone forms well.ICICI Prudential Long Term Equity in price. thinks it's a great company, but it'sFund (Tax Saving) not. So the stock's overrated and • Understanding the science of • Having accurate investment overpriced; let's sell.\" economics will enable you toPg. 10 decision, or accepted by safely harness the macroList of ICICI Prudential market. Complexity in second-level future.Funds in Mint thinkingSIP Top UP John Maynard Keynes, one of the • Sometimes the outlook is most influential British economist Second-level thinking is deep, clear, and sometimes it'sPg. 11 of the 20th century, commented complex and convoluted. It's complicated.ETW Funds 100 \"Conventional thinking and important to have desiredSystematic Investment Plans behavior is safe, but it guarantees competency to exercise second- • You have to be careful when it's mediocrity. You need to know level thinking, while imparting on the latter. Tarakki Corner when your performance is likely Pg. 12 Contd. on page 2 Pankaj Ladha ARN - 63097 KotaThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

2 TARAKKI TIMES, OCTOBER 2017 Interview Equity markets are already up. Is there more room to grow? The Economic Times | September 18, 2017 Besides equity, value-oriented schemes, large-cap plans & financial schemes are the right options to park your moneyS Naren basis, but, on price-to-book and ment, the pockets of value asset allocation. This means thatED & CIO market cap-to-GDP basis, we are are pharma and information investors who are investing inICICI Prudential Mutual Fund just above long-term averages. technology (IT). One has to be pure equity schemes should also So, on the valuation parameter, mindful of the fact that there are consider investing in debt fundsIndian equity markets are on an the market is neither cheap nor near term headwinds in each of like dynamic duration schemesuptrend with the benchmark extremely expensive. these spaces but they offer or accrual schemes.indices steadily climbing higher, relatively attractive long-termthanks to the liquidity flooding From a cyclical perspective, the possibilities. When it comes to other twothe markets by way of domestic market is not at the top as thematic options, banking &investment (invested `15,695.51 capacity utilisation, capex cycle Pharma currently is under cloud finance and infrastructure arecrore in August). This is at a time and credit growth are all due to FDA issues and lower two pockets that are likely to bewhen foreign institutional in- languishing. growth in US generics, while IT is in spotlight from a medium-termvestors have been net sellers in reeling under the on-going digital perspective. However, when itAugust (outflow of approximate Earnings growth too is strained, disruption phase. For those comes to investing in themes it's`15,000 crore). So, on the market as can be seen from the last investors who are looking to important to know when to makesentiment front, it's a unique quarter earnings, and this invest in pure equities and who a timely exit, before the sectorsituation wherein the domestic situation is likely to remain over can handle asset allocation loses its shine.participants are optimistic about the next couple of quarters, wisely may consider any of themarket prospects while foreign as India Inc gets completely four options - value-oriented And for those who wish to makeinvestors are less optimistic. formalised with the GST schemes (long-term SIPs), pure the most of the potential volatile implementation. Based on these large cap schemes, banking and times ahead and want to deploySo, one of the often talked about parameters, it can be concluded financial schemes or infra- fresh cash into equities, we havepoint today is - Is there more that the market is in a mid-cycle. structure schemes. been recommending balancedroom for market upside given advantage dynamic asset alloca-that earnings are yet to catch up? Historically, it has been seen that Pure large caps because when tion category of schemes. markets tend to top-out once the market moves from mid toThe answer to this question is earnings come by. However, as end phase of the market cycle, The reason being that investingmultidimensional. On the valua- of today, we are awaiting that benchmark-oriented schemes into this category ensures thattions front, the market is clearly trigger to materialise. We are of tend to do well, as was the case the investments made are notexpensive on price-to-earnings the view that earnings are likely seen in 2006-2008, and provide only into equities but also into to increase over the next two relatively higher margin of safety debt, thereby striking a balance years. than any theme. on the asset allocation front. Investment opportunities One of the lessons of the last liquidity boom from 1994-1996 In the current market environ- was the importance of followingSecond-level thinking and smart investment decisions Contd. from page 1• Correct forecasts lead to • Assets with greater liquidity are situations second-level thinking aspects to check if the invest-investment gains. safer. comes handy. ments made in the present market will hold good once the• A forecast has to be correct in • The level of risk in a portfolio We have often seen even good bull phase is over. or der to be profitable. can be kept low by applying a companies can become simple formulaic process. overpriced, making them risky As Howard Marks puts it aptly• The earning of a profit proves from an investment perspective, \"Experience is what you got, that investor has made good Going against the grain isn't easy, while bad companies can also when you didn't get what you decision. and same applies when it's about become underpriced to the point, wanted.\" taking investment views that are where investment risk is low.• A low price makes for an contrary to consensus. Therefore, Making a superior investment attractive investment. investing requires lot of hard work But, the real investment return decision never comes easy and and deliberate thinking. isn't made in buying what other even great investors acknow-• Assets that are appreciating, de people like; but buying what ledge that. It is a process of serve your attention. ANIRBAN Relevance in current market others underestimate or mis- constant improvement and BORA Contrarianism will bring environment calculate and the importance of learning, one which is very consistent success. this cannot be overstated in the enriching and rewarding. Indian stock markets are on an current times.• It's important to do what feels upswing and this has made some right. investors jittery, while others Therefore, while investing one enthusiastic. It is in such should look into the variousThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Interview 3TARAKKI TIMES, OCTOBER 2017Betting on the India storyOutlook Money | October 2017The launch of Bharat 22 ETF will benefit several investors, especially those who are looking for stable returns,by Narayan KrishnamurthyThe CGO complex in Delhi, next was created by Asia Index Private from cyclical nature of the managing the financial aspectsto Jawaharlal Nehru Stadium off Limited, which is a joint venture economy. of CPSUs such as capitalLodhi road, houses several between the BSE and S&P restructuring, leveraging ofcentral government and some Global. The composition of Further, the caps on allocation to assets, bonus policy, dividendPSU offices. The complex can bepretty intimidating.So, when I visited Neeraj KumarGupta, secretary, Department ofInvestment and Public AssetManagement (DIPAM) tounderstand the thinking behindthe much awaited Bharat 22 ETF,it took a while to reach his officeon a floor which was beingrenovated. Thankfully, theinteraction was smooth and hewas very candid about his takeon this new offering.\"The broad divestment policy islooking to achieve divestmenttarget through minority stakesale, strategic sale, listing ofCPSEs, consolidation of oilsector, and listing of insurancecompanies;' he said.Having tasted success with the Bharat 22 is very different from sectors and companies means, policy, and capital expenditure.CPSE, this route for strategic the earlier CPSE ETF. there is very little room for \"My department views alldisinvestment was favoured by discretion in allocation. aspects of our actions from anthe government for several \"Bharat 22 is well-diversified with investor's perspective.reasons, but primarily to engage investments across six sectors- Moreover, the fund will beretail investors to take part in this basic materials, energy, finance, balanced annually in March, Our aim is to provide investorsinvestment opportunity that was FMCG, industrials, and utilities:' which is again favourable for so with the opportunity from thebeing offered to them. \"ETF says Gupta. The focus on consti- that the basic allocation mix is value unlocking of PSUs frommanagement costs are low, tuting this ETF has been done somewhat maintained. \"We have such a strategic route,\" explainsrelatively less risky, the taking into account the retail looked at creating an avenue for Gupta.investments are transparent, one investor need for stable return on investors to take advantage ofcan trade in real time, and there investment in companies that some of the best companies With near 90 per cent of the S&Pis liquidity,\" he explained. have a proven track record, with where the government operates BSE Bharat 22 constituents a long history of existence. with grown potential,\" adds dominated by large-cap stocks,The ETF will be managed by ICICI Gupta. there is little room for slacknessPrudential AMC and the index The mix of allocation across in the performance. If one digs sectors is such that it takes into In all fairness, the thought gone deeper into the performance of Upside of Bharat 22 account safe, cyclical, and into creating this product is the index, in terms of dividend growth prospects. So, FMCG sound and convincing. The role yield, the S&P BSE Bharat 22 The index is based on takes care of the safety net, of DIPAM is also clearly stated, index scores over the BSE extensive research and energy and metals will benefit as the department will help in Sensex over different time back tested data Performance indicator The portfolio is rebalanced once a year in March Return (%) The cost and expenses of Index Name managing this fund is low 1-Year 3-Year 5-Year 10-Year The portfolio is well diversified across sectors S&P BSE Bharat 22 index 15 10 14 13 and stocks S&P BSE Sensex 13 7 14 9 One can trade in real time and the fund is highly Nifty 50 14 9 15 10 liquid Source: Data as on Aug 31, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

4 TARAKKI TIMES, OCTOBER 2017 InterviewReform Impact Sector Weight (%)Reforms Companies to benefit Energy 5.3Financial Sector (digital 4.4economy, insolvency and Axis Bank, BoB, Indian Bank, SBI Oil & Natural Gas 4.4bankruptcy code) Corp 3.3Tax reforms (GST) All the companies of Bharat 22 Indian Oil Corp 17.5Infrastructure Larsen & Toubro, NBCC (India) and NALCO Bharat Petroleum 4.4FDI Liberalisation Banks, Bharat Electronics Corp 4.4Make in India ITC, Larsen & Toubro and NALCOOil & Gas BPCL, GAIL and ONGC Coal India BPCL, Coal India, NTPC, NHPC, Power Grid,Energy Sector Power Finance Corporation, SJVN and Total - Energy (%) Rural Electrification Corporation National Aluminium Co Total - Basic Materials (%) FMCGperiods based on historical data. investors and for now that is the branding gurus, Al Ries and Jack ITC 15.2 focus:' By the time you read this, Trout, there is a lot that an Total - FMCG (%) 15.2Likewise, if you look at the 22 the fund offering must be on or investor could gain by investingcompanies that form the index, a would have just got over. in this ETF which has been made Utilities 7.9majority of them are those in from 22 magic companies. 6.7which several established Going by the past experience Power Grid Corp of 3.7mutual funds are already with the initial launch of the CPSE The biggest advantage of India 1.2investing, which validates their ETF, there is chance for the investing in a basket of PSUs is NTPC 0.3presence in this ETF as well. government to throw in a that you will not be in for Gail India 0.2 discount to market price of the surprises, because these are NHPC 20As we were winding up the underlying stocks and loyalty businesses that focus on areas in NLC Indiadiscussion, I asked Gupta if he bonus to retail investors. which they operate, with little SJVNsaw room for more such ETF room for divergence into new Total - Utilities (%)offerings and he replied with a I don't know where the idea of areas or segments.smile: \"let us take one step at a Bharat 22 came from, but if one Industrialstime. Bharat 22 offers good has read The 22 Immutable Lawsopportunity and prospects to of Marketing by marketing and Larsen & Toubro 17.1 Bharat Electronics 3.3 Engineers India 1.5 NBCC (India) 0.6 Total - Industrials (%) 22.6 Finance State Bank of India 8.6 Axis Bank 7.7 Bank of Baroda 1.4 Rural Electrification 1.3 Corp Power Finance Corp 1 Indian Bank 0.2 20.3 Total - Finance (%)The content mentioned in this mailer is published by Outlook Money. ICICI Prudential Asset Management Company Limited (the AMC) takes no responsibility for any data/informationmentioned in this material. The AMC (including its affiliates), ICICI Prudential Mutual Fund (the Fund), ICICI Prudential Trust Limited (the Trust) and any of its officers, directors, personnel andemployees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any wayarising from the use of this material in any manner.Nothing contained in this document shall be construed to be an investment advise or an assurance of the benefits of investing in the any of the Schemes of the Fund. Recipient alone shall befully responsible for any decision taken on the basis of this document. The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Interview 5TARAKKI TIMES, OCTOBER 2017 ICICI Prudential Focused Bluechip Equity Fund A top large-cap offeringET Wealth | August 07, 2017 ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.HOW HAS THE FUND PERFORMED? BASIC WHERE DOES THE FACTSWith a 7-year return of 14%, the fund has outperformed the FUND INVEST?category (average return: 10.99%) and the benchmark (9.46%) DATE OF LAUNCHby a wide margin. Portfolio asset Fund style 23 May 2008 allocation boxGrowth of `10,000 vis-a-vis category and benchmark CATEGORY Debt & cash Equity 2.61% Fund TYPE Growth Blend Value `25,020 Large Cap 4.65% Small Medium Large Category AVERAGE AUM MID CAP CAPITALISATION `20,751 `13,497.24 cr`10,000 BENCHMARK 95.35% Nifty 50 Index Equity LARGE CAP INVESTMENT STYLE WHAT IT 97.39% COSTS Index I The fund is a true-blue large-cap offering with NAVs* more than 95% of its investment in large-caps. `18,825 GROWTH OPTIONJuly 2010 July 2012 July 2014 July 2016 July 2017 `38.01I The fund has comfortably beaten its peers As on 2 August, 2017 DIVIDEND OPTlON Top 5 sectors in portfolio (%) and the benchmark over the last seven years. `23.92 Financial 34.42 AutomobileAnnualised performance (%) Fund MINIMUM INVESTMENT 12.66 Index Energy 10.71 Category average `5,000 Technology 7.61 7.45 MINIMUM SIP AMOUNT Healthcare 19.79 18.87 18.60 `500 I The fund portfolio is heavily invested in financials. 16.22 EXPENSE RATIO (%)16.38 16.04 16.60 17.11 14.05 2.10 14.50 13.07 EXIT LOAD Top 5 stocks in portfolio (%) 1% for redemption 9.97 within 365 days *As on 31 July , 2017 HDFC Bank 7.35 ICICI Bank 7.20 1 year 3 year 5 year 4.88 As on 2 August, 2017 State Bank of India 4.19 ITC 4.04 Maruti Suzuki India6 monthI The fund has outperformed across I The fund portfolio is well diversified with a most time frames. healthy exposure in its top bets. HOW RISKY IS IT?Yearly performance (%) Fund Category Index 13.19 13.61 13.4241.10 31.39 35.21 23.49 23.56 24.58 Standard Deviation (%) 0.72 0.60 0.39 2017 Sharpe Ratio 13.96 12.66 9.78 Mean Return (%) 7.74 3.01 4.46 FUND Based on 3-year performance. As on 31 July 2017 2016 MANAGER2014 -0.21 -4.06 -1.84 I The fund’s risk-return profile remains 2015 Sankaran Naren superior to many of its peersI The fund's return profile has been As on 2 August, 2017 TENURE: JUST TOOK OVER healthy in recent years. Education: B.Tech, MBA Wherever not specified, data as on 30 Jun 2017. Source: Value ResearchSHOULD This true-to-label large-cap fund has space for past few years, but this extend beyond 5% of its portfolio. While its fund manager recentlyYOU an impressive track record. Several fund has stuck to its mandate. The The skew towards financials space is moved on, investors can takeBUY? peers in the large-cap category have fund prefers a high alignment with an outcome of this approach. The comfort that the reins have been been found dipping into the mid-cap the benchmark index-cash calls and portfolio remains well diversified taken over by a highly skilled veteran. segment to ride the uptick in that sector deviations from index do not with healthy exposure to top bets. It remains a top large-cap fund.The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

6 TARAKKI TIMES, OCTOBER 2017 Fund Review ICICI Prudential Value Discovery Fund Prudent choiceMutual Fund Insight | October 2017 Among the most popular funds in We keep away from stocks which this category, this fund climbed Launch to a four-star rating way back in offer a low-valuation illusion. July 2004 2009 and steadfastly held onto a four- or five-star rating before slipping to three Companies with a history of Fund manager stars lately. Mrinal Singh mistreating minority shareholders Despite its label, the fund doesn't hunt for deep-value stocks but for stocks that are another category we stay away have growth potential and are trading at REGULAR DIRECT a discount to their intrinsic value. The from. MRINAL SINGH parameters used are price-to-book ratioExpense ratio (%) 2.15 1.05 and relative market capitalisation.Top-five sectors (%) The fund is market-cap agnostic and its relative performance seeing a blip in the multi-cap nature. From a high mid-cap last one year. The fund's three- and five-10.43 5.46 exposure a year ago, the fund has year returns are 1-7 percentage points10.71 6.43 sharply increased its overweight ahead of the benchmark returns but only positions in large caps in the last one marginally ahead of the peers. The10.71 11.48 year, taking the large-cap exposure to 83 fund's sig-nificant underperformance of per cent, probably on account of more the benchmark and category on a 8.85 attractive valuations in this space. Mid- trailing one-year basis bears watching. cap bets have been moderated from16.61 above 40 per cent to 15 per cent now. 31.29 Popularity has seen its asset size burgeon to over `17,000 crore and this21.30 seems to have led to a large-cap preference, too. The fund's multi-cap Fund S&P BSE 500 approach ensures that it doesn't have to dilute its contrarian mandate in order toFinancial Technology Energy manage a larger fund size.Construction HealthcareMarket capitalisation (%) The fund consistently beat the index and A fund with the ability to go against the peers every year since 2009, with tide to spot winners.Small caps Large caps 1.44 83.02Mid caps SIP Value (`) 6 lakh ` 4.17 lakh15.54 4 lakhAssets ` 17,568 cr as on July 31, 2017 2 lakhTrailing returns (%) 0 `10,000 invested monthly for 3 years (`3.6 lakh) Amount invested September 2014 August 2017 Fund S&P BSE 5001-Year 7.74 Fund history 16.28 Year 11.82 2011 2012 2013 2014 2015 2016 2017 10.84 Rating3-Year Quartile ranking* 2 3 4 Fund return (%) -23.73 4.61 14.005-Year 22.21 1 1 2 1 15.71 46.01 8.31 73.76 5.44Recent 41.28 Category return (%) -23.41 30.92 5.31 48.07 2.34 5.09 25.28 rally 24.95 S&P BSE500 (%) -27.41 31.20 3.25 36.96 -0.82 3.78 24.70Recent crash -16.14 Investment style Capitalisation -19.93 Growth Blend Value Large Medium SmallRecent rally: Dec 20, 2011 - Mar 03, 2015 Fund style *Quartile ranking means the quartile in which the fund appears when all the funds in the category are arrangedRecent crash: Mar 04, 2015 - Feb 11, 2016 in a descending order of returns.Data as on August 31, ‘17.Portfolio-related data as on July 31, ‘17.The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 7TARAKKI TIMES, OCTOBER 2017 ICICI Prudential Balanced FundDiversified portfolio, consistent outperformanceBusiness Standard | September 22, 2017 WELL BALANCED PERFORMANCESLaunched in November 1999, ICICI ICICI Prudential Balanced Fund Category Benchmark Prudential Balanced Fund is classified under the balanced schemes of 20CRISIL Mutual Fund Ranking. It has featuredin the top 30 percentile (CRISIL Fund Rank 1 16.19 16or 2) in the three consecutive quarters ended 15.50June 2017. The fund's quarterly average 13.32 12 Returns (%)assets under management (AUM) tallied at 13.28`11,734 crore in June 2017. The primary 12.48 8investment objective of the scheme is to 9.02generate long term capital appreciation and 4current income from a portfolio that is 19.02 0invested in equity and equity related 17.18securities as well as in fixed income 11.76securities. The fund is jointly managed by 15.01Sankaran Naren, Atul Patel and Manish 12.16Banthia. 8.67 12.50Performance 12.27 8.98The fund has managed to consistentlyoutperform the benchmark (CRISIL 1 Year 3 Years 5 Years 7 Years 10 YearsBalanced Fund - Aggressive Index) and itscategory (funds ranked under the balanced SIP Returns Total Amt ICICI Prudential Benchmarkcategory in June 2017 CRISIL Mutual Fund (in `) Invested Balanced FundRanking) in all the periods under analysis. (Principal `)Given the fund's extensive track record, ithas experienced various market phases, and Market Returns Market Returnshas outperformed the benchmark across all Value (%)phases under analysis and its peers in three Value (%)phases. 13,071 18.21 1-year 12,000 13,096 18.64An investment of `1,000 in the fund onMarch 30, 2002 (since inception of the 3-year 36,000 45,176 15.66 42,737 11.72benchmark) would have grown to `13,203on September 18, 2017 at an annualised rate 5-year 60,000 94,327 18.38 80,895 12.06of 18.14 per cent against the benchmark 2,82,586 16.43 2,06,826 10.56which would have grown to `6,397 (12.73 10-year 1,20,000per cent). Returns as on September 18, 2017A systematic investment plan (SIP) is a Returns up to one year are absolute, rest annualisedmode of investment offered by mutualfunds to retail investors through which one Banks, power and finance were the top held consistently which indicates activecan invest a certain amount at a regular contributors to the fund's returns. churn by the fund manager. The consistentlyinterval. ICICI Prudential Balanced Fund has Performance in the banking space was led by held stocks were ICICI Bank, Federal Bankoutpaced its benchmark in all the periods ICICI Bank, HDFC Bank and City Union Bank; and Sanofi India, of which two outperformedwith significant margin over the longer while Power Grid, CESC and NPTC were the fund's benchmark.periods. power sector contributors. Within the finance sector, Bajaj Finserv returned The debt portion of the portfolio, comprisingPortfolio analysis handsomely (more than five times) in three sovereign and corporate debt securities, has years. Some of the other contributors were seen a shift in allocation from sovereign toIn the past three years, the fund has taken Britannia Industries (more than tripled), Tata corporate debt to benefit from higher yieldsaverage 72.82 per cent exposure to equity. Chemicals, Bharat Electronics and Maruti offered by corporate securities.The top five sectors constituted average Suzuki.51.88 per cent of the fund's equity portfolio. Exposure to corporate debt and governmentThe highest exposure was to banking (18.87 The fund maintained a diversified portfolio of securities averaged 6.98 per cent and 15.77per cent), followed by software (10.41 per around 70 stocks recently compared to 48 per cent, respectively, in the past threecent), pharmaceuticals (9.11 per cent), stocks held, on average, in the past three years.power (6.96 per cent) and consumer non- years. The fund took exposure to 139 stocksdurables (6.75 per cent). during this period, of which only three wereThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

8 TARAKKI TIMES, OCTOBER 2017 Fund Review ICICI Prudential Long Term PlanSafe choice for the risk-averseThe Hindu Business Line | August 07, 2017The fund scores across rate cycles through active management of durationAfter holding rates through four the fund has delivered 12-12.5 per cent per cent return that year. The fund has also policies, the RBI finally cut the repo return, outperforming the category by 2-3 made the best of rallies. In the 2014 bond rate by 25 basis points last week. But percentage points. rally, for instance, the fund delivered a strongthe G-Sec yield, that fell by 70 bps over the 19 per cent return, by taking the duration allpast year, has not moved much. It continues Active calls the way up to seven years.to hover in the 6.4-6.5 per cent range. This isbecause, bond markets have already The NAV on debt funds rises or falls along While retaining a high duration hurt itsfactored in the rate cut and possibility of with the underlying bond prices. One of the returns in 2015, the fund managed to beatfurther cuts remain uncertain. While the factors that impact bond prices is the the category by 3 percentage points in 2016,recent data has forced the RBI’s hands, the interest rate movements in the economy. If delivering around 17 per cent return. So farcentral bank continues to retain its neutral interest rates move up, bond prices fall. This in 2017, the fund has delivered 5.9 per centstance (it had changed its stance from is because investors flock to newer bonds return, beating the category’s 4.2 per centaccommodative to neutral in February this that offer higher rates. This reduces the return.year). attractiveness of older bonds and henceHow the monsoon pans out, HRA increase their prices decline. While active calls on duration help the fundunder the Seventh Pay Commission, manage the rate risk well, investments inadverse impact of base effect, and fiscal The reverse holds true under a falling rate mainly high-rated bonds and governmentrisks emanating from state farm loan scenario; bond prices move up. Thus rates securities mitigate the credit risk as well.waivers - that can still exert upside pressure and bond prices have an inverseon inflation in the second half of this fiscal - relationship. This is where ‘duration’ comes Portfolioleave little headroom for further rate cut. into play. As longer duration bonds are moreGiven the uncertainty over rates, investors sensitive to interest rates, the fund manager Currently (as of June 2017) the fund holds 68averse to taking risk could consider dynamic increases duration to cash in on the rally in per cent in government securities, 18.6 perbond funds that have the flexibility to switch bonds in a falling rate scenario. In a rising cent in AAA rated bonds and 10.6 per cent inbetween short-term and long-term debt rate environment, the fund manager AA rated securities. It has a duration of 6.9instruments. reduces the duration of the fund, to cap years. This can help it cash in on the rally if losses. bond yields move lower.ICICI Prudential Long Term Plan is one such Active duration has helped ICICI Prudential Given the RBI’s recent cut and uncertainityfund that has dynamically managed duration Long Term Plan tide over various rate cycles. over rate action, the fund manager mayacross rate cycles to deliver category- When the RBI hiked rates abruptly in 2013, decide to lower the duration to cap losses.beating returns across rate cycles and the fund managed to deliver a return of 9.6tenures. Over the last three and five years, Steady run Annual returns (in %) FundasAssets as on June 30, 2017: ` 2,337 crore ICICI Prudential Long Term Plan Category-beating returns 68.0% Government securities Category Mainly invests in G-Secs and AAA rated bonds 18.6% AAA rated bonds 12.0 12.5 12.1 9.2 10.5 9.3 Consistent performance 10.7% AA rated bonds across cycles 1 year 3 years 5 years 2.7% Cash and equivalent ICICI Prudential Dynamic Plan One Fund ReviewMint | September 2017 Return mint How ` 10,000 has grown 50BEST Mint 50 is a curated list of 50 2,50,000 2,39,790 FUNDS investment-worthy funds. 1,02,719 ICICI Prudential Dynamic PlanICICI Prudential Dynamic Plan 3 Oct 2017 2,00,000 Source: Value ResearchCorpus (` cr) (as on 31 Aug 2017) 7382.3 Nifty 50 Index 1,50,000NAV (as on 3 Oct 2017) 241.05 1,00,000Expense ratio (as on 31 Aug 2017) 2.29Category average expense ratio 2.41 50,000(as on 31 Aug 2017) 0Minimum Investment ` 5,000 12 Nov 2002 Base value taken as 10,000The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 9TARAKKI TIMES, OCTOBER 2017 One Fund Review ICICI Prudential Focused Bluechip Equity FundMint | September 2017mint Return50BEST Mint 50 is a curated list of 50 How ` 10,000 has grownFUNDS investment-worthy funds.ICICI Prudential Focused Bluechip 40,000 ICICI Prudential Focused Bluechip Equity Fund 38,483Equity Fund 35,000 Nifty 50 Index 20,827 30,000Corpus (` cr) (as on 31 Aug 2017) 14,336.63 25,000 26 May 2008 18 Sep 2017 38.56 20,000NAV (as on 18 Sep 2017) 2.09 15,000Expense ratio (as on 31 Aug 2017) 10,000Category average expense ratio 2.02(as on 31 Aug 2017) 5,000Minimum Investment ` 5,000 Base value taken as 10,000 Source: Value Research ICICI Prudential Balanced FundMint | August 2017mint Return50BEST Mint 50 is a curated list of 50 How ` 10,000 has grownFUNDS investment-worthy funds. 1,30,000ICICI Prudential Balanced Fund 1,10,000 ICICI Prudential Balanced Fund 1,22,898 Hybrid: Equity-oriented 90,000 1,06,472Corpus (` cr) (as on 31 Jul 2017) 16,393.78 120.43 70,000 18 Aug 2017NAV (as on 23 Aug 2017) 2.25Expense ratio (as on 31 Jul 2017) 50,000 Source: Value ResearchCategory average expense ratio 2.38(as on 31 Jul 2017) 30,000Minimum Investment ` 5,000 10,000 19 Nov 1999 Base value taken as 10,000 ICICI Prudential Long Term Equity Fund (Tax Saving)Mint | August 2017 Mint 50 is a curated list of 50 Return investment-worthy funds. mint How ` 10,000 has grown 50BEST FUNDSICICI Prudential Long Term Equity Fund 3,60,000 ICICI Prudential Long Term Equity Fund (Tax Saving)(Tax Saving) 3,10,000 Nifty 500 Index 2,60,000Corpus (` cr) (as on 31 Jul 2017) 4502.68 2,10,000 1,60,000NAV (as on 11 Aug 2017) 316.13 3,16,130Expense ratio (as on 30 Jun 2017) 2.32 1,10,000Category average expense ratio 60,000(as on 30 Jun 2017) 2.47 10,000 87,574 19 Aug 1999 11 Aug 2017Minimum Investment ` 500 Base value taken as 10,000 Source: Value ResearchThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

10 TARAKKI TIMES, OCTOBER 2017 Fund Reviewmint List of ICICI Prudential Funds in Mint50BESTFUNDSMint | September 2017FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr) 14,336.63LARGE CAPICICI Prudential Focused Bluechip Equity Fund 11.14 16.66 NAMULTI CAP 10.23 16.62 12.36 7,382.30ICICI Prudential Dynamic Plan 17.36 21.13 NA 89.45ICICI Prudential Nifty Next 50 Index Fund 10.29 21.08 16.66 17,137.39ICICI Prudential Value Discovery FundTAX PLANNING 8.59 17.20 12.60 4,440.18ICICI Prudential Long Term Equity Fund 12.81 18.41 11.89 18,096.78(Tax Saving)EQUITY-ORIENTEDICICI Prudential Balanced FundFUND CORE 3-month return (%) 6-month return (%) 1-year return (%) Fund size (Rs cr)DEBT-ORIENTEDSHORT TERM 1.50 4.31 8.20 12,216.01ICICI Prudential Short Term PlanSIP Top UpA monthly Systematic Investment Plan (SIP) of Rs. 10,000 with an annual Top Up of 10% in these schemes has generated returns as stated belowScheme Name 5 Years 10 YearsICICI Prudential Return (%) 12,72,241 48,20,074 Midcap Fund 24.34 18.67 ICICI Prudential Return (%) 10,65,780 --Focused Bluechip Equity Fund 16.22 --ICICI Prudential Return (%) 10,94,490 41,84,161Balanced Fund 17.49 16.03ICICI Prudential Return (%) 10,51,825 38,49,972 Top 100 Fund 18.42 14.27ICICI Prudential Return (%) 10,65,259 38,36,085 Dynamic Plan 16.25 15.16ICICI Prudential Return (%) 10,83,815 39,83,943Multicap Fund 17.16 14.95ICICI Prudential Balanced Return (%) 10,03,891 37,38,403 Advantage Fund 13.7 13.78 ICICI Prudential Return (%) 9,72,569 --Select Large Cap Fund 12.39 -- ICICI Prudential Return (%) 11,08,375 48,67,833Value Discovery Fund 18.42 19.71ICICI Prudential Long Term Return (%) 10,37,608 39,15,506 Equity Fund (Tax Saving) 15.38 15.78Data in XIRR (%) terms and as of September 29, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 11TARAKKI TIMES, OCTOBER 2017ETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | September 2017 Value Research Returns (%) FUND Fund Rating 3-month 6-month 1-year 3-year 5-year 5.01 16.26EQUITY: LARGE CAP 5.01 9.3 15.92 12.01 19.83ICICI Prudential Focused Bluechip Equity Fund 2.73 17.88EQUITY: MULTI CAP 1.79 10.78 19.01 18.14 11.85ICICI Prudential Nifty Next 50 Index Fund 8.9 5.72 13.33 13.19HYBRID: EQUITY ORIENTED 9.76ICICI Prudential Balanced Fund 5.67 9.98 11.66 11.74HYBRID: DEBT-ORIENTED CONSERVATIVEICICI Prudential MIP 25 (An open ended Incomescheme. Monthly income is not assured and is subjectto the availability of distributable surplus)ICICI Prudential Regular Income Fund 1.9 3.71 7.84 9.88(An open ended income scheme. Income is not assuredand is subject to the availability of distributable surplus)DEBT: INCOME 1.78 4.29 7.89 9.91ICICI Prudential Banking & PSU Debt Fund 1.36 4.98 8.63 11.88DEBT: DYNAMIC BONDICICI Prudential Long Term PlanSystematic Investment PlansA monthly Systematic Investment Plan (SIP) of Rs. 10,000 in these schemes has generated returns as stated belowScheme Name 3 Years 5 Years 7 Years 10 YearsICICI Prudential Return (%) 4,56,944 10,95,112 18,25,436 32,03,828 Midcap Fund 16.16 24.34 21.18 18.67 ICICI Prudential Return (%) 4,43,079 8,99,457 14,56,575 –Focused Bluechip Equity Fund 13.99 16.22 15.46 –ICICI Prudential Return (%) 4,44,325 9,27,765 15,46,438 27,79,346Balanced Fund 14.19 17.49 17.14 16.03ICICI Prudential Return (%) 4,40,233 9,49,055 14,38,642 25,27,841 Top 100 Fund 13.55 18.42 15.11 14.27ICICI Prudential Return (%) 4,42,631 9,00,084 14,55,824 26,52,437 Dynamic Plan 13.92 16.25 15.45 15.16ICICI Prudential Return (%) 4,33,299 9,20,223 14,95,535 26,22,393Multicap Fund 12.44 17.16 16.2 14.95ICICI Prudential Balanced Return (%) 4,25,443 8,45,281 13,89,426 24,63,518 Advantage Fund 11.18 13.7 14.14 13.78 ICICI Prudential Return (%) 4,10,631 8,18,435 12,99,513 –Select Large Cap Fund 8.76 12.39 13.06 – ICICI Prudential Return (%) 4,12,961 9,49,055 16,31,216 33,88,421Value Discovery Fund 9.14 18.42 18.64 19.71ICICI Prudential Long Term Return (%) 4,13,527 8,80,995 14,51,621 27,42,008 Equity Fund (Tax Saving) 9.24 15.38 15.36 15.78Data in XIRR (%) terms and as of September 29, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

12 TARAKKI TIMES, OCTOBER 2017 Tarakki CornerYour YToaur rTaarakkkki CiornCer ornerPankaj Ladha Knowledge can take you places. He who has knowledge well as the financial world.” He says Investor education isARN - 63097 will always find a right way. Pankaj Ladha hails from Kota, his passion and he does it for personal satisfaction. In theKota Rajasthan, India - the education City of India. He is a last one year, he has conducted over 60 financial literacy commerce graduate working in the financial markets since programs that was attended by over 10,000 people. His 1991. target is to financially educate 25,000 people by 2020. He is a stock broker since 1991 having over 3000 investors Even though the conversion ratio is comparatively low, he in broking as well as mutual funds. He has joined mutual has had people who have approached him after 9 to 10 fund industry since 2015. On this 15th August he was months. For him an educated investor is a win-win awarded by Rajasthan Government for spreading financial situation. education and educating people which helps them make informed financial decisions. As on today Pankaj manages over approximately ` 100 crores of financial assets. According to him, a good When he started out as a professional, he found that portfolio would include proper allocation of funds and investors had bad experiences due to lack of discipline and rebalancing backed with proper research. emotional quotient. So he went on to plan portfolios that would create a sense of discipline and empower them to To the aspirants of financial advisory and research, he manage their investment portfolios professionally. His advises to focus on learning, reading and interacting with focus always is on undertaking research and planning investors to exchange knowledge. “Learning should never properly. stop. The more learning takes place, the better is your business.” He concludes. Investors are a big source of inspiration for him. They've also supported and motivated him throughout his professional life of over 25 years as family does. That helps him derive business without aggressively taking up any marketing initiatives. He acquires new clients through references from existing investors. He believes a happy investor helps you grow. “We offer advise that broadens their horizon in the investment asThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit isgiven by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICIPrudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. Alldata/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC tak es no responsibility of updating anydata/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss,damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Thesector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in thesesector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material.