Tarakki Times English October 2020

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS MUMBAI | OCTOBER 2020 | PAGES 13 Professional Views Over the past 22 years, there have been Pg. 2 no defaults in our debt-fund holdings 5 books that influenced ICICI Pru. Mutual Fund's S Naren in life CNBC-TV18 | October 29, 2020 Pg. 3 US equity market is currently overvalued, says Mrinal Singh of ICICI Pru AMC Mint | October 16, 2020 Pg. 4 Shunning debt funds may not be in the best interest of investors in long run Hindu BusineeLine | October 11, 2020 Pg. 5 Mutual Fund Insight | November 2020 Money Guru Zee Business Nimesh Shah mically managed asset alloca- record of more than two decades MD & CEO tion schemes come in. in managing debt investments. Pg. 6 ICICI Prudential Mutual Fund Over the last 22 years, there have Going forward, we believe the been no defaults, nor has there Smart Beta ETFs balanced advantage category been any delay in interest Are They The Best Of Two Worlds? has the potential to reach the payments in our debt-fund hold- scale of the present equity AUM ings. We successfully navigated Bloomberg | Quint | October 25, 2020 Business priorities and prod- of the industry. The other set of the credit space as we were one products we are positive on is of the early movers having ucts becoming mainstream solution-oriented offerings. The instituted an in-house inde- This festive season, should you take idea here is to help people invest pendent risk-management team and consequently manage cash- entrusted with overseeing credit- the gold ETF route to invest in gold? Business priorities, especially in flow requirements for their long- evaluation and approval term goals, such as retirement, processes. Economic Times | October 23, 2020 terms of investment manage- in a planned manner. This team is independent of the Pg. 7 ment, continue to remain the Impact of COVID-19 investment team. The decision same for the short and long to onboard a credit is taken after For the past few years one of our detailed due diligence and in ESG Investing: How to invest in terms: to deliver better invest- key thrust areas has been accordance with our Debt digitisation. While no one could Investment Policy. ESG companies – Here’s all you ment performance for our have envisaged a pandemic and the resultant shuttering of Furthermore, our fixed-income wanted to know partners and investors and take businesses, our focus on going schemes did not have any digital has helped ensure that exposure to names which have Financial Express | October 06, 2020 them closer to achieving their business goes on as usual. been under stress over the past goals. Furthermore, our business two years. Our focus is on client Tarakki Insight continues to grow withoutany selection, keeping away from further investment in physical concentration risk, using our Pg. 8 In terms of products, we believe infrastructure. All investor-facing own due diligence instead of and have been talking about the activities, like on boarding relying only on credit rating as investors, continue to remain the selection tool, managing Want to buy good stocks at a hybrid/asset-allocation category. seamless through a paperless liquidity risk and not chasing interface. yield-to -maturity. All these discount? Invest in Value Funds We are of the view that asset- factors have helped our credit- Risk review of debt funds risk fund to deliver a positive Outlook Money | November 2020 allocation techniques should be investment experience. ICICI Prudential has a solid track Pg. 9 one’s mainstay as they are the only way to protect capital How to set up SWP and protect relative to the market at all points against capital erosion in time. The common beha- vioural pattern seen among Outlook Money | November 2020 investors is to invest in equities when the market rallies, even at Tarakki Corner Pg. 10 higher valuations, and stop/ Jainendra Singh Nahar pause investing when the market Mutual Fund Distributor corrects. Pg. 11 This tends to hurt an investor in the long run and minimises the Praveen Kumar Jain returns. During such times, it Volatility Coach pays to have a counter-cyclical approach. This is where dyna- Fund Review Pg. 12 List of ICICI Prudential Funds We believe the balanced advantage category in Mint ETW Funds 100 has the potential to reach the scale of the present equity AUM of the industry. Pg. 13 List of ICICI Prudential Funds in Star Track Mutual Fund

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 2 TARAKKI TIMES, OCTOBER 2020 Interview 5 books that influenced ICICI Prudential Mutual Fund's S Naren in life CNBC-TV18 | October 29, 2020 S Naren intuitive and the importance of an American surgeon, and public for stocks under different styles ED & CIO developing second-order think- health researcher details how a and what type of questions does ICICI Prudential Mutual Fund ing, as a means to outdo the checklist approach to complex the newbie investor needs to ask competition. The other aspect activities will help you avoid during the stock selection Through the series Bookmark, the book talks about is the mistakes which could have process. leading voices in the world of concept of market cycles across serious consequences other- finance and business talk about various sectors-a factor which is wise. The author lays out the How Will You Measure Your the books that influenced them most dependable in the world of dos and don’ts such that the Life? by Clayton Christensen in their professional journey, and investing. checklist once made will be in some cases, also touched helpful to whoever decides to The author Clayton Christensen them at a personal level. The Little Book on Value follow it. One of the key aspects is a Harvard Business School Investing, by James Montier when going through the pre- Professor and is considered In this episode, S Naren, ED & paration is to ensure that the among the world's most in- CIO, ICICI Prudential MF, shares As the title of the book suggests, checklist made is short, clear, fluential business thinkers. the list of the books that have the text here helps a reader and focused on the essentials. To Through this book, he highlights had a big influence on his life. recognise various behavioral conclude, the book highlights the importance of working with a biases that tend to fog an through various examples, how purpose. What is often missed The Most Important Thing: investors’ minds. Some of the checklists seemingly enable to out is that human life, in the Uncommon Sense for the traits discussed here are self- defend the user, even the ex- context of society, is short. So, Thoughtful Investor, by attribution bias, confirmatory perienced, against failure across working with a purpose makes Howard Marks biases, overconfidence, and a variety of tasks. much more sense. He forces the empathy gap. As a means to reader to reflect on one's value In this book, Howard Marks, catch oneself from falling into The Manual of Ideas: The system, relationships and work Chairman and Co-Founder of any of these traps, the book Proven Framework for Finding engaged in. The book draws Oaktree Capital Management, recommends the importance of the Best Value Investments, by various theories and examples describes his investment maintaining an investment diary John Mihaljevic from the world of business to process. He stresses the need as a means to overcoming these present the parallels in our and benefits of being counter- biases. This book can be considered as a everyday life, families and career. must-read for beginners who are The Checklist Manifesto: How looking forward to exploring the to Get Things Right, by Atul world of value investing. Over Gawande 300-odd pages, the book takes the reader through nine different Unlike the earlier mentioned styles of value investing. It books, this is not an investment- details how they are used, why oriented one. Here, the author, they work, how one can screen

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 3TARAKKI TIMES, OCTOBER 2020 US equity market is currently overvalued, says Mrinal Singh of ICICI Pru AMC Mint | October 16, 2020 Mrinal Singh What is your take on this? flows, management quality and within the category? Who Deputy CIO - Equities the margin of safety it offers to should invest in focused funds? ICICI Prudential Mutual Fund While value and growth are two an investor. These are the traits What should be the return different investment strategies required for a good business. expectation? Do focused funds Investors are divided over the but they complement each other. And if investors are ready to be suffer from the cap on the performance of value-oriented Both of these styles have their patient then we believe it maximum number of stocks? mutual funds and value stocks own set of strengths and weak- will offer a much rewarding Or, is it an advantage? amid low growth scenario nesses. Typically, from a market experience. created by covid pandemic. bottom, value tends to perform Return diversion is a phenomena Some believe there is little hope well; followed by growth What kind of performance can visible across equity fund for value names to outperform outperformance. From a long we expect from value funds? categories. In case of focused and thus, value is good as dead term perspective, both the Do you see the consumption category, this diversion could be and other set believes that post strategies tend to perform well boost in terms of announce- higher in the short run, because US Presidential elections, value as can be seen from historical ments made by the Finance of the higher concentration bets stocks are poised to crush data. While value may have Minister further helping value taken, which is also a category growth stocks. Mrinal Singh, phases of underperformance, it stocks to outperform? feature. An investor when Deputy CIO - Equities, ICICI would be incorrect to make considering focused category Prudential AMC believes, \"value assumptions that write off this Given the current pandemic should understand that invest- and growth are two different strategy. Historically, value has situation, we have a lot of moving ments here require longer investment strategies but they been one of the most rewarding parts. Longer the prevailing commitment and higher appetite complement each other. Both of investing styles for making extra- situation continues, higher will for near term volatility when these styles have their own set of ordinary returns over extended be the impact on businesses, compared to other diversified strengths and weaknesses.\" period of time. For example in particularly the ones which are categories. It is important to Mrinal Singh also shares his our case, ICICI Prudential Value leveraged. However, there will be gauge what is the right strategy favorable sectors for investors to Discovery Fund has posted a set of businesses, even though which fulfills an investor’s go for in the current scenario. He 18.16% CAGR since its inception weighed down by current financial goals. This is because wrapped up the interview with in 2004. constraints, will emerge stron- there will be phases of out- his views on international ger. This is where we would like performance or under perfor- equities. Other set of commentators to be positioned. mance based on the investment suggest that post US Presi- bets taken. ICICI Prudential manages dential elections, value stocks Going ahead, if income growth India’s largest value fund, ICICI are poised to crush growth makes a comeback or GDP Just like every other category, Prudential Value Discovery stocks and invariably value growth improves, then there is a focused has its advantages and Fund with assets under fund investors will have a joy case for consumption emerging disadvantages. Here, it is very management of nearly `16,000 ride with their investments. as a larger theme. But what clear that the portfolio will crore. One set of market How do you see this play out? would be far more important is consist only of maximum 30 commentators build assump- investment for which the key names, which we believe is a tions that in a low growth Historical evidence clearly driver could be Government or reasonable number. So, this world, there lies little hope for suggests that portfolio mode- private sector. From the current category is best suited for an value names to outperform and lling done on the basis of an economic phase, investment investor looking at concentrated thus, value is good as dead. electoral outcome hasn't paid off could be a key lever in post strategies. investors. Value portfolios when pandemic resolution. being constructed do not take Your NFO on ESG collected into account transient develop- Moving to another category, more than `1,400 crore. How ments such as election as they there are some select focussed different is this fund from the have limited impact on the funds which have done much other funds that you manage? nature of returns over long term. better than most other funds in What we do consider is the price, the category. Why is there such As a mutual fund, we have just profit generating potential, cash a diversion in investor returns embarked on an ESG journey and Going ahead, if income growth makes a comeback or GDP growth improves, then there is a case for consumption emerging as a larger theme. But what would be far more important is investment for which the key driver could be Government or private sector. Contd. on page 4

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 4 TARAKKI TIMES, OCTOBER 2020 Interview Shunning debt funds may not be in the best interest of investors in long run Hindu BusineeLine | October 11, 2020 Amit Bhosle Management, ICICI Prudential impact debt funds such as interest rate call goes right the Head - Risk Management Asset Management Company. interest rate and credit spread. potential future return is the YTM ICICI Prudential Mutual Fund All investments in a fund’s multiplied by rate of change in Like amoeba in biology, invest- portfolio have to be valued on a interest. But once credit risk is The series of debt defaults by ment risk always changes shape. daily basis (impacting the NAV). injected into this then the new large corporates in last 18 Half the problem will be solved if While this more dynamic in set of challenges as credit and months has suddenly made one understands investment nature it also presents challen- liquidity risks are asymmetric in investors shy away from debt risk, he added, while speaking at ges,” adds Bhosle. nature. In credit risk, if the call mutual funds, even as expec- the Smart Investor webinar titled goes wrong possibility of losing tations of a fall in interest rate ‘Risk Management in Debt Safety, liquidity and return - that the principal is high,” explains could benefit certain categories Mutual Funds’, jointly presented is the investment philosophy that Bhosle. Hence, reducing the of debt funds. by BusinessLine and ICICI we have been advocating -which entire investment construct in Prudential Mutual Fund. He was finds root in the construct of the debt mutual funds to just YTM Not all debt funds were impacted in conversation with Radhika mutual funds itself, explains may not be in the interest of and, investors consequently M e r w i n , A s s o c i a t e E d i t o r, Bhosle. investor. One must look at risk avoiding debt funds completely BusinessLine. adjusted returns. can be detrimental in the long Risk and return are two sides of run, said Amit Bhosle, Head, Risk Mutual funds deploy reputation the same coin, and investors No super heroes as capital. Once they deliver a cannot expect to generate bad experience, investors are unlimited returns without There are no super heroes in wary to park money again in exposing oneself to comm- debt funds. If one relies on an mutual funds. While financial ensurate risk. individual fund manager to capital can be regained, repu- rescue an investment, then that tation cannot be earned once it is While investing in debt mutual itself is a recipe for disaster. lost, said Bhosle. funds, the entire narrative is Investors can choose appro- often built around the concept of priate categories of debt funds “There are various changes that YTM (yield-to-maturity). “If the for investments, depending on their risk appetite. SEBI’s recent Risk and return are two sides of the same coin, guidelines for evaluating the risk and investors cannot expect to generate levels of a scheme – taking into unlimited returns without exposing oneself to account credit, interest rate and commensurate risk. liquidity risk in case of debt funds - which is accordingly depicted by the risk-o-meter, will increase the level of disclosure for the entire industry. US equity market is currently overvalued, says Mrinal Singh of Contd. from page 3 ICICI Pru AMC fication, continued deal wins and we are quite upbeat on its future stocks that we will like to be in. lot of money for investors who good earnings visibility are all prospects. We believe in the Incrementally this space and could time the entry and exit factors which are favourable for future ESG will be engrained evaluation criteria will evolve. right on the past few months. this sector. across mandates and will not be Do you favor any of these relegated to one fund alone as Which are the most favored sectors and why? Can investors When it comes to international awareness, acceptance and sectors at this time? expect them to continue their equities, US equity market has demand for this strategy in- current performance? seen a continuous rally from creases. The data too is su- From a domestic economic 2012 to 2020 and is currently pportive with the ESG index viewpoint, we are positive on We are positive on pharma and overvalued when compared to outperforming the broader investment oriented sectors. software companies. Pharma as any other global market. So we market at large. While infrastructure and rural a sector may do well due to its have been very cautious on the themes have the potentially to critical nature post COVID-19, US equities. Those looking to We are happy that we were able deliver returns, we believe there high earnings visibility coupled take international exposure can to on board a large set of is a sizeable runway of business with its defensive nature in times consider investing across global investors who are keen to parti- prospects for healthcare, tech- of volatility. When it comes to markets and not just the US cipate in the market in the ESG nology and telecom. software, valuations are largely markets. way. We look forward to doing comfortable. Given its strong justice to them. In general, ESG International equities, pharma- balance sheet, sizeable cash is a very different product with a ceuticals and IT companies reserves to survive disruption, defined strategy and a set of have done quite well making a global presence, better diversi-

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 5TARAKKI TIMES, OCTOBER 2020 माट बीटा फं ड या है? Ø एि टव, पैिसव और बीटा फं ड तीन का जायका शािमल है Ø पोटफोिलयो म िकसी एक इडं े स क ही कं पिनयां शािमल होती है Ø कं पिनय का चयन िनधा रत िवि य मापदडं के आधार पर है Ø फं ड मैनेजर इडं े स आधा रत रणनीित को फॉलो करता है Ø िफलोसॉफ पैिसव तो इ वे टमट टायल िनयम आधा रत होता है माट बीटा फं ड: कै से करते है काम? Ø बीटा इडं े स क माकट वोलेटैिलटी को िदखाता है Ø अ छे र क- रवॉड रे यो के िलए बदलाव माट बीटा है Ø इडं े स म बदलाव को फै टर इ वेि टंग भी कहते है Ø माट बीटा म तीन चीज - लो वोलैिटिलटी: ाइस म कम वै रएशन, वै यू: स ते टॉ स, वॉिलटी: बेहतर ोथ भारत म माट बीटा फं ड Ø भारत के िलए माट बीटा फं ड अभी काफ नया है Ø िपछले 3 साल से पैिसव िनवेश म बढ़ोतरी िदखी है Ø 1 साल म पैिसव फं ड म Rs. 70,773Cr का इन लो रहा: AMFI Ø पैिसव फं ड का कु ल AUM अग त 2020 तक Rs. 2.19 लाख करोड़ था Ø भारत म माट बीटा फं ड फै टर टाइल पर आधा रत है Ø इसका सबसे बड़ा उदाहरण है वै यू माट बीटा फं ड

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 6 TARAKKI TIMES, OCTOBER 2020 Interview Smart Beta ETFs Are They The Best Of Two Worlds? Bloomberg | Quint | October 25, 2020 Investors, often having seen 100 in a Nifty ETF, nearly Rs 15 of a new category of mutual fund than their peers. fund managers of actively would go into Reliance Indus- schemes—a blend of passive managed mutual fund schemes tries Ltd. and active strategies. They are On this BQ Big Decisions fail to beat the benchmark, are called smart beta ETFs. podcast, BloombergQuint asking why they shouldn’t have a Those in favour of active fund speaks to Chintan Haria, head higher percentage of their funds management say it’s unfair to These ETFs are comprised of a product development and stra- parked in passive mutual fund judge the performance of list of stocks that are selected tegy at ICICI Prudential Asset schemes. actively managed funds based based on criteria that is deter- Management, about the types of on the past two years. The mined when they are launched. smart beta ETFs, and how they Passive schemes are either passive investment camp, on the The criteria is often a factor or a compare with active and passive exchange traded funds or index other hand, points to the lower combination of factors like low mutual fund schemes. funds that mirror a benchmark. costs involved in investing in volatility, value, quality or For example, a Nifty ETF would these schemes, which leads to momentum. For example, a Nifty deploy funds into the 50 stocks long-term benefits. Smart Beta ETF with a focus on of the index in proportion to their low volatility would comprise of weight. So, at the start of The increased interest in passive stocks within the 50-stock index October, if you were to put Rs investing has led to the creation that are relatively less volatile This festive season, should you take the gold ETF route to invest in gold? Economic Times | October 23, 2020 In this podcast, Chitan Haria of ICICI Prudential Asset Management talks about why gold is giving better returns as compared to shares and debt in 2020, why people are taking the ETF route and what are the risks involved in investing in ETFs. Hi everyone and welcome to This is podcast is about investing Fund houses continue to remain 2020, why people are taking the episode 92 of the ET Wealth in gold.. especially using the ETF bullish about gold ETFs. They say ETF route and what are the risks Wisdom podcast route that this trend is likely to continue involved in investing in ETFs as ETFs are a hassle-free way of I am Tania Jaleel A recent Economic Times news owning gold Let us listen in report stated that those The festive season is here millennials who are looking for a Now, should you invest in gold So there you have it.. make sure calibrated entry into gold are ETF and how much gold should that gold does not take up a Along with going crazy over the leaning towards gold ETFs and you have in your portfolio disproportionate amount of many many deals thrown at us sovereign gold bonds space in your portfolios, maintain shoppers, it is also a time us To find out I spoke to Chitan Haria your asset allocation. Indians love to buy gold According to data from AMFI, the of ICICI Prudential Asset number of folios in gold ETFs Management Many buy it for personal increased by 111.19% last consumption and then there are month compared with We spoke about why gold is those that use it as an September 2019 giving better returns as investment compared to shares and debt in

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 7TARAKKI TIMES, OCTOBER 2020 ESG Investing: How to invest in ESG companies - Here’s all you wanted to know Financial Express | October 06, 2020 Even though the idea of investing address this problem effectively Good deeds are rewarded ESG parameters - Quantum India on the ESG parameter is at a by way of use of renewable sooner than later, a rule which is ESG Equity Fund, SBI Magnum nascent stage in India, it is very energy, promoting plantation, relevant to both business and Equity ESG Fund and Axis ESG likely to catch up soon due to better waste management and investing. Investing in a company Equity Fund. ICICI Prudential increasing awareness about pollution treatment. following all the three para- Mutual Fund too has joined the such important aspects. meters of ESG is called ESG band wagon with its New Fund Apart from individuals, cor- investing. If a company adheres Offering which opened on As individuals, we all need to porates too have an important to ESG requirements, it invaria- September 21, 2020 and closed save and invest to meet our role to play as they draw bly results in higher profits as it on October 5, 2020. various financial needs. At such resources, both natural and helps a company in all aspects, times it is desirable that as a human, from the places they including brand building and How can one identify ESG responsible citizen we should operate. So, corporates are customer patronage. The initia- companies? evaluate our target investments expected to take up measures tive of providing some rooms in not only on the basis of financial of social responsibility. The their Taj Hotel by Tata for medical These fund houses draw their parameters but also on certain Companies Act, 2013 mandates staff working for treatment of companies, generally, from the good non-financial parameters. corporates to spend 2% of patients as well as serving food SEBI mandated list of top 1,000 A good starting point for non- net profits towards social to the medical staff at their listed companies, which are financial parameters can be ESG responsibility causes. Some workplace, has helped Tata build required to prepare a business (Environment Empathy, Social corporations are following this in a huge reputation. I myself have responsibility report (BRR) every Responsibility and Corporate word and spirit while others are vowed to give preference to Tata year. The BRR has extensive Governance). trying just for the compliance products over other products. disclosures about the level of sake. Like me, there must be many adoption of responsible busi- Even though the idea of investing more individuals who were ness practices. The fund houses on the ESG parameter is at a A good corporate governance influenced by their generosity. All have their internal criteria and nascent stage in India, it is very practice is the single most of these will ultimately result in systems to assign weights to likely to catch up soon due to important aspect directly affec- better profits over long term due companies based on multiple increasing awareness about ting investors’ wealth creation to customer brand loyalty. criteria. The companies are then such important aspects. Let us ability in the long run. SEBI has Because of these parameters, given an aggregate score and if it discuss all about ESG investing. been actively attempting to investing in ESG is also called is above a certain threshold, then enforce good corporate gover- sustainable investing due to the that company qualifies to be What is ESG investing? nance by listed companies. inherent sustainability of considered for investment. Here also there are some which companies following ESG. The tangible and visible signs are complying with it in letter and However, there are certain com- (melting glaciers, rise in average spirit whereas others are doing it How can we invest in ESG panies whose businesses are temperature) of global warming in letter only. companies? perceived as harmful from a can no longer be ignored. The social perspective, such as spike in air, water pollution In effect, ESG investing is about It is very difficult for an individual tobacco, liquor and gambling, coupled with ever-reducing investing responsibly where the investor to identify and invest which get excluded. Likewise forests cover for the past few management is very proactive based on ESG criteria in the companies with higher carbon years all point to our neglect of about all the three factors and absence of any readily available footprint, or which draw on water the environment. This has led to thus enhance shareholders value data. So, the best approach heavily (bottling plants) or which erratic rainfall, droughts and in the long run. would be to look for mutual fund pollute the air or water are given floods at the same time in schemes which follow ESG as a negative weights and some- different parts of the country. Why ESG + financial criteria mandate. As of September 2020, times altogether excluded. However, all is not lost as yet. makes more sense than finan- there are three mutual fund Companies with dubious cor- There are ways and means to cials alone? schemes investing based on porate governance records too are excluded from portfolio ESG investing is all about investing ethically consideration. for one’s own financial well being in the long run. To conclude, ESG investing is all about investing ethically for one’s own financial well being in the long run.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 8 TARAKKI TIMES, OCTOBER 2020 Channel Partners Tarakki Insight Want to buy good stocks at a discount? Invest in Value Funds Outlook Money | November 2020 Salil Kothari outsized gains. This is because Margin of Safety long periods of time. you get an opportunity to buy a Founder & CEO good company at a price which is Value oriented equity mutual Global studies have shown that Cyclo Investments less than the intrinsic value of a funds look for stocks which offer famous value investors have company. In other word, you get ‘value’ at the price it is quoting. underperformed the markets Be it the neighborhood store or a good bargain which many in The stocks in a value portfolio during roughly one-third of their ultra-modern retail outlet, the Street may be looking away would be names which are investing career. Just because a bargaining often leads to getting from those pockets. available at a discount to its fund manager has built a great best deals. The premise here is intrinsic value. But, how much value portfolio does not mean it that the seller is not quoting a However, spotting such oppor- should be the discount? This is will start delivering superb price that is favourable to the tunities for a retail investor may where ‘margin of safety’ comes returns right away. Often waiting buyer. Hence, negotiations prove to be a tough and time in. Like it sounds, margin of time leads to temporary under- happen. Investing in stock consuming task. Furthermore, safety indicates the difference performance before delivering market is no different. The only one may not have the resources between intrinsic value of a stock long-term outperformance. point of difference here is that to find out the true value of a and market value. Higher the things are online and it is a bit stock. This is where mutual fund difference between intrinsic Why Now tough to negotiate with poten- comes to the rescue. value and market price, higher is tially thousands of faceless the margin of safety for an As the market recovered from investors sitting around the Investors who are looking for investor. Why would a stock March lows, it was not quality country trading by ‘ticks’. such opportunities can opt for worth Rs 10 be selling for Rs 4-5? but value which led the recovery. the value category schemes It is very common that value In the times ahead, there is a For a seasoned investor there are where one gets an opportunity to picks, for a variety of reasons, are good probability that value will always pockets of bargain availa- own stocks which are thoroughly perceived in a negative light make a strong comeback, as ble in the market. They often vetted by market experts but are initially which is why they are quality fatigue sets in. Also, there happen to be spaces which are available at a bargain. undervalued to begin with. But are several pockets in the overlooked, avoided and unloved with time, markets discover the markets which even though is by the crowd at large. However, Finding Value true value of the stock and expensive in general, provides a for a long term investor therein rewards it richly only later. good opportunity for invest- lays the opportunity to make Warren Buffett is one of the ments with its attractive valua- famous value investors the world Means to Identify Value tions, healthy dividend yield and of finance has seen yet. His take earnings comfort. on value is best summarized in There are various ways in which a this quote - ‘Price is what you value stock can be identified. It To conclude, being invested in pay; value is what you get.’ Is the could be with the help of value category of equity funds market price of a stock its true financial metrics such as the need patience. At times of a value? Not necessarily. Price to Book Value (P/B) or Price runaway rally there could be to Earnings (P/E) ratio, to name a short term pain, but the returns Without understanding the few. One the stock becomes a generated over long term very intrinsic value of any object, you part of the portfolio, the waiting well compensates for the test of will be susceptible to deals begins. The aspect one has to patience an investor had to which are only good for the remember while waiting is that endure. sellers. markets can remain irrational for Margin of safety indicates the difference between intrinsic value of a stock and market value. Higher the difference between intrinsic value and market price, higher is the margin of safety for an investor.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Channel Partners 9TARAKKI TIMES, OCTOBER 2020 Tarakki Insight How to set up Systematic Withdrawal Plan and protect against capital erosion Outlook Money | November 2020 Venkateswaran Mutual Fund schemes allow an SWP strategy in equity funds. Rebalancing at regular intervals: Muthukrishnan investor to withdraw a pre- determined amount from the When investing lump sum, After creating an investment Founder accumulated corpus at periodic watch out for valuation levels: portfolio comprising of equity Acuwealth Advisors) intervals (monthly, quarterly, half- and debt, it is important to re- yearly or annually) to meet his When making lump sum invest- balance at periodic intervals. By Planning for regular cash flows cashflow needs. ment for setting up SWP, it is way of periodic re-balancing, one from investments is one of the necessary to time the entry point can book profits when equity major requirements of all The key advantages of SWPs as appropriately using valuation valuations are expensive and investors, particularly retirees. compared to insurance annuity metrics, for optimal investment shift to debt funds. This effec- Tw o o f t h e m o s t p o p u l a r payouts are as follows: experience. As the strategy is tively helps in portfolio pro- cash flow generation options • Tax efficient returns designed to provide regular tection and lengthens the period generally seen are buying an • Flexibility to decide timeframe cashflows for long periods of of cashflows generated from the immediate annuity plan from an and amount of withdrawals time, we have to go back in time corpus available. insurance company or setting up • Corpus liquidity at all points in to understand the impact of systematic withdrawals from time valuation levels on the portfolio. Investing through Dynamic mutual fund investments. • Ability of the corpus to participate in equity market gains To illustrate the point, an investor Asset Allocation funds: Off late, The Immediate Annuity plan Ashok retired on 31st December, dynamically managed asset from insurance companies Because of these benefits, 2007, with a corpus of `10 lakhs. allocation funds have gained suffers from shortcomings like SWPs have become popular He wants a cash flow of `10,000 popularity which does the re- annuity not being able to match among the retirees. per month for foreseeable balancing on its own based inflation, lack of corpus liquidity, future. He has two options in on pre-determined valuation poor tax efficiency, lack of Though it is possible to set up front of him. models. These valuation models transparency etc. This is where SWPs in debt and equity are time tested and tend to be Systematic Withdrawal Plan schemes, investors tend to set Option 1: Go ahead and invest in very robust. As there is no (SWPs) offered by mutual funds up this feature in equity oriented equity mutual funds and set up investor interference, such funds trumps. funds. SWPs immediately remove behavioral biases such as greed and fear which further What is Systematic With- Risks associated with SWPs in Option 2: Look at the valuation helps to optimize returns. drawal Plan (SWPs)? Equity Funds: metrics of that time and decide if it is the right time to enter To sum up, by adopting a com- While there are inherent merits in equities bination of valuation based equity fund SWP such as its investments, periodic re-balan- ability to generate inflation The PE ratio of the market as on cing or opting for time-tested beating returns; there are some 03rd January 2008 was around dynamic asset allocation fund, downside risks as well like 27.3 times. an investor can use SWP to their capital erosion which impacts advantage not only to protect the corpus available. This could Each of the option produces their capital but also to generate cause an investor to run out of starkly different results. The fund reliable cash flow over long money well before the target under consideration existed in periods of time. date. Therefore, it is imperative 2008 and now with no change in to fine-tune this strategy to investing mandate. extract maximum benefit out of Option 1: The investor faces negative sequence of returns during initial days of investments which resulted in complete capital erosion over the next 12 years. Option 2: The investor opted to wait patiently for an opportune time to deploy the corpus. By deferring investment based on market valuation, the investor could change the sequence of portfolio returns.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 10 TARAKKI TIMES, OCTOBER 2020 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Jainendra Singh Nahar Mutual Fund Distributor, Varanasi Ensuring safety while upholding his responsibility Jainendra Singh Nahar, started off his journey as an IFA from scratch and with the sheer idea to provide safety. He feels that safety is the biggest aspect for any person, much like how we see how strong the roof of our house is, he thought he would also work towards ensuring safety for those in the society and do the right thing with suitable advice. It started with his understanding of the need of trust, and that drove him into taking this up as a full-time career. Recalling his early days, he says, ''I used to walk over 3-4kms every day to go to office and while the initial phase was very hard, it was when I gradually saw things turning positive that I earned internal strength and the confidence to achieve what I set out for.'' Despite being shunned from companies and places, he took it upon himself as a life-long learning to make something of him and that served as an inspiration for him. Much like the present day business, it was through connections and references that he started his journey and acquired the clients. In fact, he first put up a canopy at 'rath yatra' in Varanasi, and fills out forms. It was the data base that started from there that he built up by adding more people to the same. Currently, he offers mutual funds only, and has assets worth 90 cr under his advisory. An advice that he always gives all his clients is to get a term plan and Mediclaim as these two are necessities in current day. He asserts his biggest learning to offering clarity and visibility, which in turn, enables him to keep up with the trust of the investors. He says, ''You keep your customers happy and they will keep you in business. Excellence is my initial, I do what I can beyond that as well. We can't think that our job is over once they have invested, that is when the responsibilities increase.'' He also recalls how he was once told by a client that his money is handled better than he would of his own money, and thereby, ensure, that he upholds the responsibility he has been given. The long term investments that are made by the investors, he ensures that the clients are ready to see their investments turn negative in equity, and given the nature of the market, it will keep going up and down, and that is what has enabled him to ensure that investment discipline is followed during these volatile times. ARN - 59632

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Tarakki Corner 11TARAKKI TIMES, OCTOBER 2020 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Praveen Kumar Jain Volatility Coach Enabling others to achieve their goals through efficiency and smart work Praveen Kumar Jain hails from a commerce background, and while he has always enjoyed reading as a part of his hobby, he has upscaled himself through various means and methods, attending workshops being one of them. Through his journey spanning years, what started from New India Insurance, later culminated into something big as his will to do something on his own lead him to become a financial advisor. With the sheer goal to enable his clients to achieve their dreams instead of completing targets at a 9 to 5 job, he has made it big, on his own. He believes, ''Financial Distribution Business is beyond sales, it is about managing emotions, aspirations & mindset. You should help others achieve the goals of the other person.'' During his journey, he had faced all kinds of people, but there was nothing that deterred him from doing what was right by him, and that is what he has done. He is a firm believer in adding value to himself so as to bring value to the client. During his initial days, he had to keep up with people of various kinds, and at the beginning of his career, when he received his first cheque worth over ` 805, he felt bad about getting this after all those days of running around. With learning from his father to respect the money he has received, and that is something he has carried forward. He says, ''Nothing is a problem in life, it is always a challenge. The only difference is that when you work on a problem, you lose energy and it takes time, but if you consider it as a challenge, it works out sooner.'’ Acquiring clients has primarily involved working with cold calls, along with those who come via common contacts. However, Praveen feels that the contacts that one builds on their own give more value to you as a Family & Volatility Coach than the rest. He has quite a few anecdotes to share and that is when he reveals, ''Something that always irked me was how people gave importance to those who have money, someone who walks in in a big luxury car than someone with a relatively smaller car, but eventually, people began to understand things clearer. Permanent work only comes one's way based on relationships and realizations not on the basis of showing off.'' That has been his journey of working hard in the beginning and eventually converting it to smart work. He attributes his biggest learning as a Financial Distributor is his belief of how investors have been sent to do good for people. He has learned during his journey as a Family Happiness Coach that everything takes time, so as to bring all possible permutations and combinations and find the right fit for the client. During the volatile times that have gone through, he has successfully managed his clients and made them follow the required discipline. He has had no redemption of the investors since Corona crisis and has set record of investors who started off in 1992 and continue to be with him, even now. ARN - 9887

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 12 TARAKKI TIMES, OCTOBER 2020 Fund Review mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | October 2020 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 3.37 7.65 9.18 24,365 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 4.98 6.42 NA 91 ICICI Prudential US Bluechip Equity Fund 15.49 14.54 NA 811 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 10.28 8.33 8.43 16,162 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | October 2020 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Bluechip Fund 3-month 3-year 5-year HYBRID: EQUITY SAVINGS 8.22 ICICI Prudential Equity Savings Fund 9.31 26.28 1.67 3.16 6.61 HYBRID: CONSERVATIVE 8.91 ICICI Prudential Regular Savings Fund 2.65 9.72 1.56 4.45 8.48 DEBT: MEDIUM- TO LONG-TERM 8.08 ICICI Prudential Bond Fund 4.56 10.89 9.99 7.43 8.44 DEBT: MEDIUM-TERM 9.38 ICICI Prudential Medium Term Bond Fund 1.33 8.62 12.21 8.32 8.53 DEBT: SHORT-TERM ICICI Prudential Short Term Fund 2.68 7.02 11.45 7.62 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 1.57 7.51 10.97 8.17 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 1.73 7.72 12.76 8.56 1.40 7.37 10.87 8.52

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 13TARAKKI TIMES, OCTOBER 2020 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | October 2020 Scheme Name BL Rating YTD Absolute Trailling Returns (%) 5 Year CAGR -5.3 1 Year CAGR 3 Year CAGR 7.6 ICICI Prudential Bluechip Fund -9.6 5.4 ICICI Prudential Large & Mid Cap Fund -11.7 -0.5 2.6 4.9 ICICI Prudential Multicap Fund -2.6 -4.0 -1.8 5.4 ICICI Prudential Midcap Fund 0.0 -6.1 0.1 4.9 ICICI Prudential Smallcap Fund 3.0 3.2 -1.7 5.8 ICICI Prudential Focused Equity Fund 3.4 6.4 -1.2 5.0 ICICI Prudential Value Discovery Fund -7.6 4.8 2.2 5.9 ICICI Prudential Long Term Equity Fund 6.6 1.8 (Tax Saving) -8.0 -0.2 3.1 3.5 ICICI Prudential Dividend Yield Equity Fund -6.4 7.2 ICICI Prudential FMCG Fund -21.1 -5.3 -5.8 -0.8 ICICI Prudential Infrastructure Fund -25.7 -6.9 3.2 7.1 ICICI Prudential Banking & Financial Services 45.7 -17.1 -8.1 15.1 ICICI Prudential Technology Fund 54.8 -16.2 -4.8 - ICICI Prudential P.H.D Fund -11.5 44.3 26.2 6.0 ICICI Prudential Equity & Debt Fund -2.7 68.3 - 6.4 ICICI Prudential Equity Savings Fund 5.6 -5.7 -0.1 7.9 ICICI Prudential Ultra Short Term Fund 6.9 0.9 4.2 8.1 ICICI Prudential Savings Fund 5.4 7.2 7.5 7.4 ICICI Prudential Money Market Fund 8.9 8.6 8.0 8.4 ICICI Prudential Short Term Fund 8.6 6.7 7.5 8.1 ICICI Prudential Medium Term Bond Fund 10.0 10.9 8.2 8.5 ICICI Prudential Bond Fund 9.4 11.4 7.6 9.3 ICICI Prudential Long Term Bond Fund 9.9 12.2 8.3 9.4 ICICI Prudential All Seasons Bond Fund 8.9 11.6 9.0 8.5 ICICI Prudential Corporate Bond Fund 7.8 12.5 8.5 8.3 ICICI Prudential Credit Risk Fund 7.6 10.8 8.5 8.5 ICICI Prudential Banking & PSU Debt Fund 10.2 8.1 9.8 7.7 ICICI Prudential Gilt Fund 10.8 12.7 8.7 9.3 ICICI Prudential Regular Savings Fund 6.1 9.3 7.3 8.8 ICICI Prudential Balanced Advantage Fund 0.8 5.4 5.8 7.8 ICICI Prudential Child Care Fund (Gift Plan) -5.3 0.5 2.9 6.2 Source: NAV India; NAV for the growth option as on 16-10-2020. Past performance may or may not sustain in the future. It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given 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 ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/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 takes no responsibility of updating any data/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. The sector(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 these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.