Tarakki Times English August 2020

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. A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS Professional Views MUMBAI | AUGUST 2020 | PAGES 13 Pg. 2 Dynamically Manage Your Asset Return potential of AA-rated Allocations For Smarter Returns papers may be better than that of AAA ones Outlook Money | August 13, 2020 S Naren ED & CIO Fund Review Pg. 3 ICICI Credit Risk Fund Beats Sector Blues, Logs 10.34% Return Economic Times | August 12, 2020 Pg. 4 S Naren Mint | August 27, 2020 been prompt in their payments in ED & CIO the past five months. Moreover, Have Credit Risk Funds Turned ICICI Prudential Mutual Fund investment in this space. moratorium is available to bank Riskier? Or It is an Opportunity customers. Most of the top Sankaran Naren, Chief Invest- On the debt side, how do you banks in the country have raised Economic Times | September 03, 2020 ment Officer of ICICI Prudential see credit risk now? capital on the equity side over Asset Management Co. Ltd, the last 45 days. So, they are well Pg. 5 talks about his calls on credit risk, We have always been disciplined capitalized to tide over any market valuation and the relative with the credit process. This has potential uncertainty over the ICICI Prudential Alpha Low Vol 30 attractiveness of the US markets ensured that in our 22-year next six months. ETF NFO compared with India. Edited history, we received the invest- New kid on the smart-beta block excerpts: ment principal and interest on Turning now to duration, in the debt investments without any recent outlook, you have asked Hindu BusinessLine | August 07, 2020 delays. We believe that from the investors to add duration and investor experience point of earn carry. Can you elaborate Pg. 6 view, the return potential of on this? investing in AA-rated papers at ICICI Prudential Nifty Next 50 this point is likely to be better Currently, there is only one major Index Fund than investing in AAA-rated borrower in the country-the papers. government of India and every- Hindu BusinessLine | August 17, 2020 one else is a saver. This has led When compared to the low to massive surplus with the Tarakki Advisor Insight In January this year, you gave a return in overnight funds, there Reserve Bank of India (RBI), Pg. 7 call on small- and mid-cap is scope for much higher re- because of the excess saving of Broke SIP for poor MF return? This stocks. Do you continue with turns in categories like moderate both individuals and corporates. is why you may regret it these calls? duration and credit risk, which We believe this trend will reverse will tend to have considerable over time as the government has Economic Times | August 12, 2020 Over the past three months, exposure to AA papers. Today to reduce its borrowing rate. The Indian equities across market there is reasonably high margin CPI has been higher mainly Pg. 8 capitalization have rallied. The of safety in these categories. because of categories such as rally in mid- and small-cap comes recreation even though not many Why you must have an SIP in debt after years of underperformance, In 2017, investors were eager to are stepping out of their homes. funds too which started in 2018. This take on risk, a phase when we Housing is another sector where broad-based rally was primarily chose to adopt a cautious stance we don’t see prices going up. At Outlook Money | August 2020 due to the steep cut in interest compared to the street. As a the same time, WPI is in the rates in India and, globally, result, the YTM (yield-to- negative. So, we believe that Tarakki Corner coupled with the US Federal maturity) on our debt funds was monetary policy should be Reserve pumping trillions of much lower than the peer group. looked at considering both WPI Pg. 9 dollars to improve liquidity. But and CPI. we are not sure how long the The moratorium will end in Anjali Patel liquidity will sustain, when the August. There is a restructuring Nifty is trading at 31 times FinFreedom33 Wealth Management vaccine comes and when scheme on the cards. How does earnings on a trailing basis. India LLP economic activity will normalize that change the scenario for What’s your view on valuations globally. companies that have some and future corporate earnings? Pg. 10 level of credit stress? Going forward, owing to the We think the current year’s Rushabh Kapadia recent rally, investments should There is no moratorium involved earnings is not a justification of Independent Financial Advisor be done in a staggered manner in any of the debt papers that we with at least a five-year horizon. are invested in. The issuers have Contd. on page 3 Fund Review From a three-five years’ pers- pective, small- and mid-caps are Pg. 11 well-placed. In the event of a List of ICICI Prudential Funds domestic market correction in Mint (owing to any correction in US equities), in the interim, investors ETW Funds 100 can consider stepping up their Pg. 12 List of ICICI Prudential Funds in Star Track Mutual 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. 2 TARAKKI TIMES, AUGUST 2020 Interview Dynamically Manage Your Asset Allocations For Smarter Returns Outlook Money | August 13, 2020 It is essential to consider the risk to investors that it was the right too. Fund houses which have a Please share your views on why appetite and liquidity needs of time to invest in equity. Due to demonstrated track record of not the proportionate share of the investor. S Naren, Executive the ample liquidity provided by facing any defaults or portfolio debt-oriented schemes has Director and Chief Investment the global central banks, over the separation would be an ideal risen in recent times despite Officer of ICICI Prudential past few months, equity markets choice for investments. the liquidity crisis? Mutual Fund, says that the best globally witnessed one of its approach in these uncertain sharpest rallies. What are the upcoming trends Investors, based on their invest- times is to focus on dynamically in terms of investing in the ment duration and risk appetite, managed asset allocation Owing to the pandemic, while mutual fund industry? can consider investing in a schemes or balanced advantage there is uncertainty in the near to variety of debt funds. At a time category of schemes. In conver- medium term, we believe that With the increased awareness when the interest rates are on a sation with Saibal Dasgupta. over time economies will around mutual funds and the decline, debt mutual funds have recover. importance of asset allocation caught the investor attention Given the heightened volatility, for long-term wealth creation. with robust performance. how are you managing the So, the optimal approach to We believe asset allocation or risks associated with equity navigate these uncertain times is balanced advantage category of Over the past two years, even funds? Why has the propor- through dynamically managed funds stands to attract larger though there were instances of tionate share of equity- asset allocation schemes or investor interest. This category, several debt papers of certain oriented schemes slipped in balanced advantage category of we believe, has the potential to schemes going bad, investors recent times? schemes. These funds will help reach the scale of the present have realised that the trouble in make the most of such challeng- equity Assets Under Manage- debt markets is not systemic in Both in India and globally, ing times by tapping into oppor- ment (AUM) of the industry. nature. It is business as usual for selected stocks have so far tunities present across equity fund houses with quality debt delivered bulk of the returns. and debt asset classes. At the Please discuss your investment paper holdings. Going forward, Cyclically, these stocks appear to same time, it is heartening to strategy for different kind of this is one trend we would like to be in end cycle, while the rest of note that the fundamental of funds. see continuing as it is important the market is not. So when it India continues to remain strong for investors to have debt mutual comes to portfolio construction, as the rural economy is robust We have funds, which cater to a funds as a part of their asset we have a value bias as several even amidst the present wide range of investors through allocation practice as it is a stable such stocks are available at circumstances. varied investment styles and asset class. inexpensive valuations, provi- strategies. All of the funds are ding good dividend yield and So, for an investor who is managed as per the mandate We are of the view that currently reasonable earnings visibility. investing in equity for a long-term listed out in the Scheme both duration and credit offers financial goal, it is important to Information Document (SID). attractive investment oppor- We believe the drop in equity continue with their Systematic tunities. Since the yield curve assets is marginal and is largely Investment Plans (SIPs). Every As an AMC, we are believers of continues to remain steep due to on account of coronavirus- correction is an opportunity for a asset allocation funds and offer a high risk aversion, short and related developments. Further, long-term investor to accumulate range of asset allocation pro- medium duration funds present absence of physical infra- more units at a reduced cost, so ducts, which are model based an interesting investment oppor- structure over the past three that over a complete market with varied level of net equity tunity. For those who are looking months due to nationwide cycle, the investor has the exposure. Contra and value to invest with a longer term lockdown is another aspect, opportunity to make outsized segments are the categories we investment horizon can consider which has hampered invest- gains. believe in. investing in dynamic duration ments, especially from those schemes. investors who preferred using In terms of debt as an asset We also have the largest value traditional means. class, we believe debt mutual fund in the mutual fund industry. Investors with higher risk appe- funds have an important role to When it comes to debt, we tite can consider investing in As you know, markets go play in a portfolio. Foregoing this follow the principal of Safety, credit space. This space remains through cycles of boom and asset class, could prove to be an Liquidity and Return (SLR). This attractive due to valuation com- bust. Would you advise long- expensive mistake as debt is the approach is aimed at optimising fort owing to the high spread term and medium-term retail asset class which brings stability risk adjusted returns by investing between accrual schemes and investors to take advantage of to a portfolio. While choosing in high grade credits, efficiently repo, which further provides a a major dip or correction? schemes, it would be advisable managing duration rate-risk good margin of safety for to consider the risk appetite and without compromising on investments made. In March, we had communicated liquidity needs of the investor liquidity risk. Investor with a higher risk appetite can consider investing in credit space.

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 3TARAKKI TIMES, AUGUST 2020 ICICI Credit Risk Fund Beats Sector Blues, Logs 10.34% Return Economic Times | August 12, 2020 Ownership in credit risk funds delaying payments once the much the fund can invest in a C F P, P l a n A h e a d W e a l t h was a must to be counted among moratorium on loans is lifted. company based on risks, it also Advisors. the D-Street elite- at least until does not allow a single investor about a couple of years ago. FOG ON THE WINDSHIELD to put in more than `50 crore in In the past couple of years, Then came an avalanche of the portfolio. several debt scheme categories, defaults, seemingly burying for \"We are in the midst of a pande- including credit risk funds, have good the new-found adven- mic with a lot of uncertainty. Before the Franklin fiasco, in gone out of favour because of turism in India's debt market There is no clarity on how things March, ICICI Credit Risk had 80 downgrades and defaults by where capital protection had will pan out once the moratorium securities and its average highly indebted companies. always been taken for granted. is lifted. Even though returns exposure to a security was Next to follow was Franklin may be high in the credit risk 1.25%. Post-Franklin, in May, \"I think it is important that inves- Templeton's decision to wind up category, investors must not ICICI Credit Risk scheme held 55 tors need to ask themselves an six schemes. That unprece- chase it without understanding securities and the average important question: Do I have dented move a month into the the risks,\" said S Shankar, CFP, exposure to a security was the wherewithal to withstand lockdown announced to the Credo Capital. 1.71% . According to its latest defaults and downgrades in world that credit risk funds factsheet, it holds 81 securities credit risks funds?\" said weren't for the fainthearted. Over the past one year, in the and the average exposure to a Kaustubh Belapurkar, head - fund credit risk funds category, ICICI security has fallen to 1.2%. research, Morningstar India. But ICICI Prudential Mutual Fund Prudential Credit Risk Fund has is convinced that D-Street isn't maintained its top position. THE RISK-REWARD BALANCE \"One must bear in mind that facing a dearth of brave-hearts. Managed by Manish Banthia and credit risk funds cannot be the So, India's third-largest mutual Akhil Kakkar, the fund has On the face of it, ICICI Prudential core part of your portfolio. fund is giving a big push to a debt delivered 10.34% return in the may have reduced risks, but Investors need to appreciate the product that predominantly past one year even as many analysts said investors need to risks associated with credit risks invests in illiquid and lower-rated schemes struggled with side consider many more aspects funds and not make investment papers. Its pitch to investors is pocketing and downgrades, before putting money into such a decisions by merely looking at built around the likelihood of risk- losing investor capital. The credit product. past returns.\" adtjusted returns that are risk category's average return in significantly higher than those at this period was negative 0.74% . \"In the present context, when the Dhawan said that credit risk competing schemes. Debt schemes other than credit credit cycle will not play out well, funds must only be a small risk funds fetch returns in the it may result in suboptimal component of an investor's To be sure, this philosophy may range of 3-5%. Also, fixed returns for credit risk funds. portfolio. Shankar of Credo have helped the fund house tide deposits yield 4-5%. Investors need to understand Capital recommends a maxi- over the recent crisis, but that extra yield to maturity mum 5-10% exposure to credit investment advisors and ana- ICICI Prudential said it owes its returns which credit risk funds risk funds for only informed and lysts still believe the credit risk outperfor mance to thorough fetch over other debt schemes savvy investors. category is far from safe for all scrutiny of investment ideas at must not be the key reason to classes of investors as there is a multiple levels, factoring in invest in credit risk schemes. It growing possibility of lower- interest rates, risks and liquidity. has to be a well-thoughtout rated companies defaulting or While there are limits on how decision,\" said Vishal Dhawan, Return potential of AA-rated papers may be better than that of AAA ones Contd. from page 1 how one looks at earnings. including yours, have increased is the way to invest for a decade like March, where equity fell Currently, the most expensive credit exposure? How’ll this or two. 20%. market, globally, is the US. As the play out in terms of risk and economy improves over the next reward? There are concerns on the How do Indian markets match three years, valuation is likely to credit quality of the papers on up against global markets like be more reasonable. Over the past one year, returns the debt side of such funds. the S&P 500? Funds tracking US generated by the balanced markets have outperformed Even today, if we consider the advantage category (which sells Over the last 22 years of our domestic equity funds in the sector valuation of, say, power equity as market rallies and vice- existence, we have never faced a past decade. Will this continue? utilities, which we are positive versa) outshone other equity single day’s delay in payment on, there are stocks which are categories, delivering excep- on our debt investments, on The US market has seen con- trading at six or seven times tional investment experience account of robust risk manage- tinuous rally from 2012 to 2020. earnings. So there are pockets of even during turbulent times. ment and superior credit selec- It’s currently more overvalued value which are very cheap even tion process. That said the future than almost any other global though market valuation in Even over the next three to five is not equal to past. market. We have been very general has turned expensive. years, we believe this category cautious on US equities. In fact, will perform well amid volatility, The excess returns that debt we’ve created a global advan- Your fund house is among the especially in a market which is investors enjoyed over risk-free tage fund of fund, which invests biggest believers in the asset largely propped up by the global rate has been remarkable on across global markets and not allocation or hybrid category of central banks. For the bulk of one- and three-year basis. just the US markets. funds. Some of the AMCs, Indian investors, asset allocation Compare this to a single month

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. 4 TARAKKI TIMES, AUGUST 2020 Fund Review Have Credit Risk Funds Turned Riskier? Or It is an Opportunity Economic Times | September 03, 2020 Perceptions about credit risk funds may have taken a hit due to certain recent events, but they offer a good opportunity to the savvy investor After a spate of credit defaults credit crisis in the bond market is Not All Credit Risk Funds and downgrades, perceptions far from over. The pandemic will Are Bad about credit risk funds have only exacerbate issues in exis- soured. A sharp fall in the net ting stressed balance sheets, so Scheme AUM 1 yr asset values of a handful of credit it will be prudent to avoid taking ICICI Pru Credit Risk (`cr) rate (%) risk funds and abrupt closure of risks.\" HDFC Credit Risk 6,556 six managed credit schemes by a Invesco India Credit Risk 6,258 9.9 prominent fund house have led Nippon India AMC CIO-fixed SBI Credit Risk 147 9.2 to large outflows from this income Amit Tripathi said: \"We Axis Credit Risk 3,848 8.4 category. But are all credit risk continue to favour risk in terms of 613 8.4 funds unworthy? term spreads vis-a-vis credit 7.9 spreads. Apart from specific For the most part, the risks in the issuers, the general clarity on Scheme AUM 1 yr credit space have only exacer- corporate and retail balance BOI AXA Credit Risk (`cr) rate (%) bated. The big businesses have sheets remains uncertain.\" UTI Credit Risk 68 shown a fair degree of resilience IDBI Credit Risk -45.2 to the disruption caused by the The aggregate figures for this Nippon India Credit Risk pandemic. However, many segment indeed make for a bad Franklin India Credit Risk 383 -32.8 second-and third-rung bond reading. This category has Data as on 1 Sept issuers remain vulnerable if the yielded a negative 0.58% return 38 -9.2 economic activity does not pick over the past year - the lowest up meaningfully. The credit among all debt fund categories. 1,541 -8.2 quality of the rated entities measured by CARE Rating's However, the figures reveal only 3,343 -6.3 'modified credit ratio' declined to one side of the story. If you dig a 26-quarter low in the April-June deeper, it is clear that the returns Source: Value Research period. have been dragged down by 4-5 credit funds, which have been hit Credit Risk Fund and Axis Credit The elevated yield on lower-rated The moratorium on loan repay- by credit events. Some of the Risk Fund have all fetched 8% or bonds suggests prices of these ments offered a temporary funds had taken concentrated higher returns over the past year. bonds have been beaten down. reprieve to many of these exposure in issuers that defaul- Several others have yielded 7- This offers potential for high businesses. But now that this ted. Some credit funds have 8%. returns in coming years, for window has closed, the actual seen stressed issuers assume a those with risk appetite. stress on company balance higher proportion of their assets Experts say this is infact a good sheets may come to light now. after large redemptions forced time for savvy investors to consi- More companies could find it the fund manager to sell more der good quality credit risk funds. difficult to repay debt. Credit- liquid investments. oriented funds that lend money to lower-rated issuers in return However, there are several credit for higher yields are particularly risk funds, with more diversified vulnerable. portfolios, which have actually delivered impressive returns. Arvind Chari, head of fixed ICICI Prudential Credit Risk Fund, income at Quantum Advisors, HDFC Credit Risk Fund, SBI recommended caution. \"The Credit Risk Fund, Invesco India This is infact a good time for savvy investors to consider good quality credit risk funds. The elevated yield on lower-rated bonds suggests prices of these bonds have been beaten down. This offers potential for high returns in coming years, for those with risk appetite.

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 5TARAKKI TIMES, AUGUST 2020 ICICI Prudential Alpha Low Vol 30 ETF NFO New kid on the smart-beta block Hindu BusinessLine | August 07, 2020 Investors seeking rule-based, low-cost investing can consider this first-of-a-kind multi-factor fund For now, smart-beta inves- Vol 30 ETF (exchnage-traded factor strategy can have extreme long run. It also did relatively well ting is a small space in fund) - has now been launched, outcomes at times - doing very on a risk-adjusted returns and India with little investor its new fund offer (NFO) open well when the factor is preferred five-year rolling return basis. interest. But it could grow big in from August 3 to August 10. It is by the market and languishing the coming years. Its selling a multi-factor scheme unlike the when it is out of favour. A multi- Note though that past perfor- proposition - a combination of others in the market that are factor strategy has an automatic mance is not an indicator of passive and active investing - single-factor funds. So, ICICI hedging mechanism, lower future performance. Also, as could potentially deliver the best Prudential Alpha Low Vol 30 ETF performance swings, and can with all index funds and ETFs, of both - good returns at low will track the Nifty Alpha Low avoid extremes. there will be some difference cost. Volatility 30 Index and provide (tracking error) in the returns of exposure to a portfolio of stocks The Nifty Alpha Low Volatility 30 the index and the scheme. A smart-beta fund is a form of selected based on a combination Index has equal weights (50 per passive fund that mirrors a of two factors - alpha and low cent each) to Jensen’s alpha and The fund manager, Kayzad curated smart-beta index. A volatility. to low-volatility factors. So, a Eghlim, also manages the two smart-beta index, developed by fund that draws on this index is a other smart-beta funds from the index providers such as NSE, The Nifty Alpha Low Volatility 30 bet on a top combination of fund house - ICICI Prudential chooses stocks from a parent Index consists of 30 stocks growth and stable stocks from Nifty Low Vol 30 ETF and ICICI index based on pre-defined selected from the Nifty 100 and various sectors. Prudential NV20 ETF. Like other parameters. For instance, the the Nifty Midcap 50. So, the ETFs, the units of the NFO will be Nifty100 Low Volatility 30 TRI fund, too, will consist of these 30 As of June 30, 2020, the Nifty listed on NSE and BSE where chooses 30 low-volatility stocks curated stocks from a list of 150, Apha Low Volatility 30 Index has investors can buy or sell. from the Nifty 100 index. based on their alpha-generation top allocation to the consumer and low-volatility metrics over a goods and pharma sectors, Often, low liquidity on the The curation of the index using one-year period. with Nestlé India, Dr. Reddy’s exchanges results in the quoted pre-defined parameters such as Laboratories, Divi’s Laboratories, prices of an ETF being at variance alpha, value, quality, low volatility While alpha generally is under- Dabur India and Colgate with the fund’s net asset value and equal weights also gives it an stood as the excess returns of a Palmolive (India) being the top (NAV). Haria says the fund has active hue. Smart-beta investing stock/fund over the market or stock holdings. There is a 5 per appointed authorised partici- is also called factor-investing as benchmark, in this case, the cent cap on exposure to a single pants to provide liquidity on the the index is filtered on the basis alpha is Jensen’s alpha - that stock in the fund, reducing exchanges, and based on rules, of factors - one (single-factor) or takes into account the excess concentration risk. investors can approach the fund more (multi-factor). return relative to the risk taken. house, too, if need be, for Standard deviation is used as the Back-testing results liquidity. Currently, there are nine smart- measure of volatility. The index is beta funds with a total corpus of re-balanced every six months; As per back-tested data by the The fund seems different from just about ₹325 crore. Most of the fund will also follow this. fund house, the Nifty Alpha Low the existing products in the the schemes have a limited track Volatility TRI outperformed market. Investors seeking a rule- record, and their performance is The new scheme, with two indices such as the Nifty 100 TRI, based, low-cost approach to a mixed bag. factors, intends to counter the the S&P BSE 500 TRI and the investing in stocks that could cyclicality of the single-factor Nifty 50 TRI in eight out of the 10 offer alpha-plus-low volatility can Multi-factor differentiator index strategy. Chintan Haria, years until 2019, and over the consider buying the fund. The Head - Product Development and expense ratio of the fund is A new, open-ended smart beta Strategy at ICICI Prudential expected to be 40 basis points fund - ICICI Prudential Alpha Low Mutual Fund, says the single- (0.4 percentage points). It is imperative though that investors have a long-term horizon and an understanding of the product. It may be a good idea to start small and test the waters on the liquidity aspect before committing more money. Since it is an ETF, investors will need a demat account to transact.

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, AUGUST 2020 Fund Review ICICI Prudential Nifty Next 50 Index Fund Hindu BusinessLine | August 17, 2020 Kayzad Eghlim Fund Manager ICICI Prudential AMC ICICI Prudential Nifty Next 50 Index Fund is one of the six passively managed index schemes that track the Nifty Next 50 Index. The index represents 50 companies from the Nifty 100 after excluding the Nifty 50 companies. Currently, growth stocks with a defensive bias appear to be carrying a higher weight in the Nifty Next 50 than in the Nifty 50. The Nifty Next 50 also offers exposure to the otherwise untapped insurance sector which is not part of the Nifty 50. Index funds are a good option for investors wanting index-linked returns. Investors new to the equity market can also consider the index funds route. Source: ACE MF *Calculated from the last 15 years’ index values. **Efficacy of index funds is measured through Tracking Error, which shows how closely an index fund tracks its chosen index. Index funds with a lower TE are preferred. TE is calculated from the NAV history of the previous one year.

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. Tarakki Advisor Insight 7TARAKKI TIMES, AUGUST 2020 Tarakki Advisor Insight Broke SIP for poor MF return? This is why you may regret it By Harsh Gahlaut Economic Times | August 12, 2020 Founder & CEO, FinEdge What is money, if not a means to haven of fixed deposits and would have been had you never opportunity loss of not having an end? While you may be quick bonds if we intend to counter started. The day you decided to invested in a low risk asset, to dismiss this rhetorical ques- inflation and build an adequate set a financial goal and start pause for a moment and tion as banal and philosophical, corpus for our long-term goals. saving for it with a structured consider why you chose a the past two decades in this action plan, you went ahead of growth asset in the first place. industry has taught me one thing Unfortunately, disappointing 99 per cent of the pack. When Congratulate yourself for how far - your personal understanding of market cycles such as the the time comes, you will need to you have come from when you this rather modest concept will extended one that we have borrow less, your interest outgo started. The moment you start affect your long-term investing witnessed since 2018 tend to will be lower, you won’t have to framing the situation in this success a lot more than you can chip away at our initial pers- break your retirement savings to manner and measuring your imagine. pective. We forget why we pay for a decent education for success in terms of your per- decided to commit our long-term your child, and you will have centage accumulation towards The moment money no longer savings into growth assets, and exponentially lowered financial your goals instead of percentage remains a means to an end – say, all sorts of behavioural biases stress than your goalless returns on your investments, a way to fund a comfortable start coming to the fore. Should I counterpart. you’ll have made a quantum leap retirement, or a ticket to a stellar remain invested or exit? Should I in the direction of being a more education for your child; it wait for the Covid crisis to pass That brings me to my second successful investor. becomes a scoring mechanism before getting back into risky point. History tells us with and a proxy measure of your assets? Should I stop my SIPs for absolute certainty that if there is In tough market conditions, the overall happiness. And that is now and restart them when the one constant in financial mar- resilience to continue on your when it all begins to go awry for economy gets better? Would I kets, it is mean reversion. In journey to financial freedom you, because notional profits and have just been better off in a other words, what goes up, comes from acknowledging how notional losses will keep you on a bank fixed deposit? These are comes down - and what goes far you have come. Unfortu- perennial seesaw of emotions just a few of the niggling down, comes up. The only nately, this becomes impossible that will drive your day to day questions that begin to trouble dampener in the equation is this - without a financial plan and a investment decisions. even the most patient and it is quite impossible to predict goal-based investing approach. rational of investors. when exogenous shocks such as I say this in the context of the Covid-19 will unsettle the bulls or Here is a concluding thought. It tried and tested concept of I’d like to offer you a different when illogical, liquidity-fuelled takes just one good year to wash financial plan-led, goal-based perspective that you can use to market rises will befuddle the away several poor ones. Re- investing. When we begin to plan reframe the situation at hand. bears. member, the last thing you would our future goals, we often come Perhaps you have patiently want to be doing when that face to face with the big bad wolf ploughed in money for your So, while it is frustrating to see happens is sitting on the fence. called inflation for the first time. future goals through SIPs since growthless years roll by, it would And that is also when we truly 2018, only to be sitting on flat or be a terrible folly to take your The best thing you can do in begin to comprehend the futility negative absolute returns after eyes off the ball and exit your low-return phases is to keep of riskless long-term investing three long years. Undoubtedly, investments when your goals are accumulating investments with and its corollary; the inescapable this is an unenviable situation to still years – or decades – away. It discipline. Good times will most need for adding growth assets to be in. But you must understand can be said with an extremely certainly come; and when they our portfolios. two things: first, ‘savings high degree of confidence that in do, you must ensure that you success’ does not equal ‘returns the journey towards your long- earn returns on a large corpus Many of us start off our mutual generation’. Even if you have put term goals, many more such and not a small one. That will fund SIPs with the theoretical away Rs 5 lakh towards your downcycles will appear, and will make all the difference towards acceptance of the volatility that is child’s higher studies over these be followed by equally furious the achievement of your financia intrinsic to equities as an asset three years, and your fund value rises. goals. class, and of the fact that we is Rs 4.9 lakh now, you are still cannot simply escape to the infinitely better off than what you Instead of calculating the Good times will most certainly come; and when they do, you must ensure that you earn returns on a large corpus and not a small one.

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. 8 TARAKKI TIMES, AUGUST 2020 Tarakki Advisor Insight Tarakki Advisor Insight Why you must have an SIP in debt funds too Outlook Money | August 2020 Harish Kotian will try to understand how the debt mutual funds. As the situation. Also, look at it in latter set was able to do that. The numbers highlighted above another way. If you face an Investment Navigator, answer lies in asset allocation, established, it makes absolute emergency when the market is at Way2Alpha and SIPs. sense to do that. multi-year lows, you will not want to withdraw your funds at a loss, Wealth Services Being smart with your assets How can a debt fund SIP help or would be forced to do so. If you? you have an allocation to debt, This year has been a roller- Asset allocation refers to inves- the negative impact on your coaster ride for equity investors. ting your money in different cate- Let us assume you have been finances could be significantly From the euphoric beginning of gories of investments, assuming continuing with an equity mutual curbed, as you will be able to use the year when market reached that the different categories will fund SIP for several years, and that amount as a contingency it’s all time high, to a multi-year behave differently in any given the corpus has now reached a fund. low in March, and then a steep situation. For instance, year to decent level. Then a global event rally again in the past few weeks date till mid-July, the Nifty 50 takes place and markets fall Where to invest? inching towards the lost glory. index, which is among the sharply. If you are someone in This ride has brought many most tracked benchmark equity category one mentioned above, While equity investments are surprises for different types of indices in India, gave negative you would sell-off in panic and commonly discussed, it could be investors. return of almost 12%. During the turn the notional losses in to real slightly daunting to understand same period, the Nifty 15 year losses. If you are in the second which fund or category of funds One category of investors exited and Above G-Sec Index gave a category of investors mentioned to choose for your debt fund SIP. the market when the market was return of over 12%. Accordingly, above, you would be thinking of It is important to answer this in deep red in March fearing it makes sense to invest in both ways to buy at low levels, but due question basis factors like your further fall. Then there is one asset classes from time to time, to lack of funds, won’t be able to risk appetite and financial goals. category that wanted to buy so that you are not caught off- do that. However, one option could be when the market was at a low guard when one of the two asset dynamic bond funds. These level, but could not do so due to classes goes in to a tailspin. Now, the third category of funds are like aggressive debt lack of liquidity at their end. At people is the ones who made the funds where the fund mana- the same time, there are also The SIP way most of this situation. How? gers can change the underlying investors who were able to make They were regularly investing in assets from time to time. the most of this bumpy ride. We While Systematic Investment debt even when equity was Experienced fund managers Plans are among the preferred reaching new peaks. typically use this freedom to ways to make investments in effectively deal with credit and mutual funds, it is mostly Eventually, when equity went in interest rate risks. synonymous with equity invest- to a free-fall, their debt inves- ments. This is also due to the low tments were not hampered. Effectively, as an investor you level of attention that asset When equity reached at multi- must not ignore debt invest- allocation gets in retail and DIY year lows, they were in a position ments. In fact, just like you have ‘Do It Yourself ’ investors to liquidate their debt assets and an equity mutual fund SIP; it is discussions. But the fact is that shift that money in to equity important for you to have a debt you can do an SIP not just in investments, thereby taking fund SIP as well. equity mutual funds, but also in complete advantage of the As an investor you must not ignore debt investments. In fact, just like you have an equity mutual fund SIP; it is important for you to have a debt fund SIP as well.

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. Tarakki Corner 9TARAKKI TIMES, AUGUST 2020 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Anjali Patel FinFreedom33 Wealth Management India LLP, Ahmedabad Taking advisory business to the next level on her own terms Anjali Nitin Patel is who we can call a next Generation IFA, working towards making the process of financial planning seamless with her own ways. Her father has been a key element in getting her into financial advisory. For someone who grew up watching him work, she feels it is in her blood. What brings her happiness is looking at how clients feel a sense of financial freedom through their services. She started off working at the firm part-time at the age of 18 and eventually, she was inspired to take this up full-time. After she graduated in MBA and started full-time, she acquired the knowledge to sail through the business. While it was difficult for her to create an identity away from the shadow of her father, regular meetings and networking eventually helped her to develop her own clientele. Currently, she manages nearly `500 crores worth of assets in mutual funds. She also on boarded, a risk management firm including term life insurance and mediclaim. She says'' The first two steps of financial planning are - firstly, getting a person secure and secondly, planning their financial goals including retirement, child education, child marriage, and a dream house. And that has been my approach.'' Her focus is to find liquidity value of people and then help them to earn a security for themselves. Hence, she directs her clients towards getting passive income while also ensuring financial security. With the belief that the mentality everywhere in terms of retirement plans is the same, as people end up runing into liabilities and not building assets; she tries to educate them on financial planning. She credits her key to success in not missing any opportunity to network while carrying forward her learning from her father to make the clients happy. Overlooking commissions from companies, the focus on quality and giving customers the right product without any bias. Given the volatile times that we have been in due to COVID-19, she understands that people might get scared, and she often asks her clients to hold tight. Her analogy is, ''If you are in a plane and there is turbulence, you don't jump off because you will die, but you sit through and wait to reach your destination calmly. This is just a momentary flag and that is it.'' ARN - 144870

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. 10 TARAKKI TIMES, AUGUST 2020 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Rushabh Kapadia Independent Financial Advisor, Bhavnagar Enabling investors to achieve a sense of financial freedom A computer engineer turned financial advisor, Rushabh Kapadia, an engineer has been into this business for the past 7 years now. Having a family business already, he put his technology skills to use by bringing about digitization to their business. He joined the firm immediately post completion of his engineering degree, and the initial days were tough because he was made to do cold calling (sales lead generation calls), however, that made him more aware of the questions that people ask, while he also understood how many rejections does he may have to face. The first challenge for him was not being fundamentally sound in business and in order to educate himself, he pursued CFP and completed it in 2018. Apart from that, he also became a part of investor meetups and once he built up a sound rapport with new clients, he began to grow as an individual. Factors like family background and acquisition of right knowledge helped him in garnering clients with ease. Currently, he manages assets worth `100 to 150 crores and offers services like mutual funds in equity (and others), LIC insurance, corporate FDs, and going ahead, he plans to also offer loans. For most of their customers, via referrals or otherwise, his approach is to work out a goal-based financial plan. He says, ''Any investment that they do, we attach it to a goal so that we are the one helping them achieve it. We try to reduce the risks in the financial planning as goals keep changing with evolving times. Hence, I offer only mildly aggressive funds with little to no risk involved, after studying the pattern.'’ With the digitalization that they have brought about as a firm, it has, in fact, lead to more awareness and happy clients while also assuring investment discipline in such volatile times of COVID-19. In fact, he has managed to keep the clients happy as well as invested. He feels that the lockdown has been fruitful in bringing about a betterment of their clients. ARN - 97654

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 11TARAKKI TIMES, AUGUST 2020 mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | August 2020 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 2.70 6.56 10.33 22,881 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 7.00 6.49 NA 87 ICICI Prudential US Bluechip Equity Fund 17.01 13.15 NA 692 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 11.48 8.51 8.67 15,799 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | August 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 6.82 ICICI Prudential Equity Savings Fund 26.50 -5.05 4.13 4.06 7.10 HYBRID: CONSERVATIVE 8.70 ICICI Prudential Regular Savings Fund 11.81 -2.49 3.95 5.23 8.59 DEBT: MEDIUM- TO LONG-TERM 7.94 ICICI Prudential Bond Fund 8.75 2.92 9.92 7.71 9.61 DEBT: MEDIUM-TERM 8.58 ICICI Prudential Medium Term Bond Fund 3.39 5.78 11.85 7.94 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 3.72 3.68 10.39 7.09 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 3.26 5.64 11.96 7.96 3.54 5.81 10.95 8.35

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. 12 TARAKKI TIMES, AUGUST 2020 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | August 2020 Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR ICICI Prudential Bluechip Fund -6.2 3.0 3.3 8.5 ICICI Prudential Large & Mid Cap Fund -8.3 -0.7 -0.2 7.0 ICICI Prudential Multicap Fund -11.4 -4.0 0.9 6.0 ICICI Prudential Midcap Fund -3.9 3.6 -1.2 5.7 ICICI Prudential Smallcap Fund -3.7 4.7 -1.7 5.2 ICICI Prudential Focused Equity Fund 5.3 7.0 4.1 7.6 ICICI Prudential Value Discovery Fund 2.8 6.1 2.5 5.8 ICICI Prudential Long Term Equity Fund -7.9 1.3 3.8 6.7 (Tax Saving) -7.0 -4.6 -4.3 4.8 ICICI Prudential Dividend Yield Equity Fund ICICI Prudential FMCG Fund -3.0 1.7 5.2 9.6 ICICI Prudential Infrastructure Fund -16.1 -11.9 -5.5 1.6 ICICI Prudential Banking & Financial Services -26.7 -15.7 -5.3 7.8 ICICI Prudential Technology Fund 27.6 21.4 22.6 12.3 ICICI Prudential P.H.D Fund 46.0 55.1 - - ICICI Prudential Equity & Debt Fund 7.7 -7.8 0.0 2.3 ICICI Prudential Equity Savings Fund -1.7 3.2 5.0 7.5 ICICI Prudential Ultra Short Term Fund 4.9 7.3 7.4 8.0 ICICI Prudential Savings Fund 6.1 8.5 7.9 8.2 ICICI Prudential Money Market Fund 4.9 6.9 7.5 7.4 ICICI Prudential Short Term Fund 7.6 10.2 7.8 8.5 ICICI Prudential Medium Term Bond Fund 6.6 10.1 7.1 8.0 ICICI Prudential Bond Fund 8.6 11.1 7.9 8.6 ICICI Prudential Long Term Bond Fund 8.3 9.5 8.5 9.6 ICICI Prudential All Seasons Bond Fund 8.6 11.2 7.9 9.6 ICICI Prudential Corporate Bond Fund 7.7 10.2 8.2 8.5 ICICI Prudential Credit Risk Fund 6.5 9.8 7.8 8.3 ICICI Prudential Banking & PSU Debt Fund 6.5 9.0 7.4 8.6 ICICI Prudential Gilt Fund 9.7 11.3 8.0 9.6 ICICI Prudential Regular Savings Fund 4.8 9.7 7.0 9.1 ICICI Prudential Balanced Advantage Fund 0.2 7.6 5.9 8.4 ICICI Prudential Child Care Fund (Gift Plan) -6.8 -0.6 2.9 6.7 Source: NAV India; NAV for the growth option as on 10-09-2020. 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.

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 13TARAKKI TIMES, AUGUST 2020