Tarakki Times English May-June 2022

\"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 | MAY-JUNE 2022 | PAGES 18 Professional Views Invest in mid and small caps through SIPs, not lumpsum Pg. 2 Prioritizing asset allocation led to positive investment experience The Economic Times | May 04, 2022 Pg. 3 ICICI Prudential AMC's S Naren on his investment mantra and more Business Standard | May 25, 2022 S Naren, ED & CIO Sankaran Naren ET Wealth | May 23, 2022 small- and mid-cap space. We ED & CIO think that the next few years Pg. 4 ICICI Prudential Mutual Fund of the weakening rupee and would mark volatility in stocks in Fixed income may become rising cost inflation for India the segment. Hence, it merits a attractive in 3-6 months Equity markets in India will Inc? Do you expect sharp systematic approach like SIPs Outlook Money | May 2022 continue to remain volatile till the earnings downgrades? rather than lump sum at this Pg. 6 US Fed decides that it is time to point in time. Floating rate bonds stand to gain step away from fighting inflation, We believe that while some in current market scenario Sankaran Naren tells Sanket commodity oriented companies What are the big calls you're Financial Express | May 05, 2022 Dhanorkar are likely to benefit from this making in your equity and asset trend, others are going to get allocation funds amid the How to invest in rising interest What is your perception of the hurt. So there will be areas where current market correction? rate scenario market sell off? Do you expect there would be earnings upgrade more pain ahead or a quick and in other areas we could Since the market touched 60,000 Fortune India | May 27, 2022 rebound? witness earnings downgrades. level in September 2021, our call We believe that export oriented has been that we are in for a Pg. 7 The US Federal Reserve Chair companies in some cases would period of volatility. We believe How Anand Shah of ICICI Jerome Powell believes that be beneficiaries of the weak- that this period of volatility will Prudential uses BMV methodology fighting inflation is the most ening rupee at this point of time. end once the US Federal Reserve to pick potential wealth creators important thing at this point of We recommend funds, which decides to stop tackling inflation The Economic Times | May 09, 2022 time. Consequently, we believe are focused on exports and and focuses on growth like they Pg. 8 that equity markets will continue services, considering that in did in December 2018. Disappointment in corporate to remain volatile till the US Fed India, services sector is less hurt earnings is likely decides that it is time to step by increasing cost inflation and So we are big believers in asset Business Standard | May 31, 2022 away from fighting inflation. But also benefits due to this trend. allocation and in volatility in this does not rule out possi- equities and in debt markets. Pg. 9 bilities of periodical relief rallies. Is this likely to put a halt to the Consequently, we think that a Why Gold ETFs should be in your recent uptick in the value systematic approach, along with portfolio this Akshaya Tritiya RBI has finally kick-started the segment of the market? following asset allocation tech- Deccan Herald | May 02, 2022 rate hike cycle. How do you niques and investing in asset Pg. 10 expect the interest rate trajec- Usually, it is globally believed allocation funds / multi asset tory to play out and its impact? that a sharp increase in interest strategies which involves inves- ICICI Pruential Value Discovery Fund rate aids the value segment in ting across categories is the best We believe that short-term the market as compared to the way to navigate the current Long-term performer interest rates are likely to con- growth segment. So we are volatile markets. We believe that tinue to go up significantly / have still believers in the near term investors who have not bothered Hindu BusinessLine | May 21, 2022 much more scope to increase out-performance of the value to focus on risk management are from where we are at this point segment relative to the growth likely to get hurt in this period of Pg. 11 of time. The longer term curve segment. Yes, the segment has the market. Mother's Day Special has already become higher, fared well in recent times. We Pg. 12 while we don't discount the also believe that this trend will What is your take on the rout in possibility of it going further up. likely continue in the near term. the big tech names globally? S Naren hails PIFAA for its illustrious At least the longer term curve What is the best approach for efforts in popularising mutual fund; reflects higher rates even now, Is the mid- and small-cap space investors in global funds? launches PIFAA Striving Success unlike the shorter term curve. ripe for bargain hunting now? Series Book We believe that investors who What is your take on the impact We don't believe that it is yet time Tarakki Corner for big lump sum investments in Pg. 13 B Giri Babu Mutual Fund Distributor Pg. 14 Bhushan Wani Mutual Fund Distributor Distributor Insights Pg. 15 Start the new financial year with the right asset allocation Outlook Money | May 2022 Pg. 16 Choose the right mutual fund DSIJ | May 2022 Fund Review Pg. 17 List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 18 List of ICICI Prudential Funds in Star Track Mutual Fund Contd. on page 3

\"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, MAY-JUNE 2022 Interview Prioritizing asset allocation led to positive investment experience The Economic Times | May 04, 2022 Sankaran Naren Did you start your journey in a So, we launched ICICI Prudential steady learners, learning more ED & CIO bull or bear market? When and Asset Allocator in the Fund of from our mistakes. With expe- ICICI Prudential Mutual Fund how did you start your tryst Fund structure. Both these rience, we have learnt that at with value investing? concept products stood the test times we never realise what is S Naren - most mutual fund of March 2020. So, unlike 2008 the mistake in equity investing at investors know him as a value- I began my journey in the bull when investors lost money, in the time of investing. In retro- conscious investor. This is market of the early 90s which I 2020 investors who invested in spect, certain decisions turned particularly true of investors who had ironically misread. Since the these products had a positive out to be outstanding successes identify him with ICICI Prudential beginning of my investment investment experience. while some decisions turned out Value Discovery Fund. For some journey, the orientation was to be mistakes. investors, Naren is a contrarian always value based. One of the What, according to you, led to investor. Whatever your take on reasons for this could be that the being a Contrarian? Looking back, there was a time in him, you can’t deny his calm only investing book available in the initial part of the career, when presence in the mutual fund my early days (1980s) were Managing other people's money I was overconfident about the space. either by Warren Buffer or taught us that money will come market. But over time you realise Benjamin Graham - both in at a time when investors want that the market is bigger than you That is why we thought of exponents of value investing. to invest and most often this and when you are working for a reaching out to him and finding happens in an up trending mutual fund, you are managing out how he deals with many ups Which was the first bad phase market. other people's money. So this and downs in the market. How in the market that you combination of markets being he tackles volatile and uncertain remember clearly? What were When you are a contrarian and bigger than you and you being phases in the market. We believe the mistakes made then and invest in a counter cyclical man- responsible for other people’s regular mutual fund investors how did you navigate the ner, you invest in asset classes money makes you realise that can learn valuable lessons from market? What were your which are cheaper irrespective of you have to be very careful most Naren’s journey in the stock learnings from this phase? the time you get the money. The of the time. So, never be market. advantage is equity, debt, gold all overconfident as you will never The market correction of 1997- peak and bottom-out at different be always right. This resulted in When did you start your 1998 was a period of great points of time. As a result, we our looking at check-lists, as journey in the stock market? learning. But from an investment popularised multi asset inves- checklists aids in reduc-ing the How were your initial years in management perspective, 2007 ting. Here, an investor gets the number of mistakes. the market? was the stand-out year. All the benefit of counter cyclical inves- funds managed by me in that ting which over long term works If there is one thing that you My journey in the stock market year (2007) underperformed the well for the investors. So, in 2007 would want young investors to started as a teenager. It started benchmark as my belief was that and 2017 when infrastructure learn from your experience, along with my father who in the market was overvalued. Owing and small caps were overvalued what would it be? 80s actively participated in the to this stance, I was overweight and inflows surged, being IPOs of multinational companies quality names - a call which failed counter cyclical would have Over the last one year, investors which were getting listed in India miserably. helped and having a multi asset have been investing in IPOs as a consequence of FERA dri- approach aided in delivering a including aggressively priced ven dilutions. The major decision However, these very calls be- better risk adjusted investment IPOs, which is worrying from a making parameter for me then came the game-changer during experience. sentiment angle. We would want was to see whether the com- 2009 as they generated huge retail investors to be circums- pany had a good product and returns. Based on this expe- Looking back, what is your pect and more cautious when it customer base. At that point, I rience, I realised that both top overall assessment of your own comes to investing in IPOs. Look was not aware of metrics like down and bottom up are equally journey? How do you see for factors like trailing price-to- Price-to-Earning or Earnings per important. today's market in that context? earnings, trailing price-to-book, share etc. dividend yield and ROE of What is the one investment My career in finance was due to the companies that they are It was during the two years at IIM decision you are proud of? my passion for stock investing. investing into. Kolkata that I was exposed to the We at ICICI Prudential have been finer aspects of the world of Based on the learnings from finance - from reading annual 2008, we at ICICI Prudential An investor gets the report to analysing stock ratios Mutual Fund introspected and benefit of counter cyclical and prices. Consequently, I enco- thought about what can be done investing which over uraged my father to move from differently in the future. We long term works well for primary to secondary markets. realised the optimal approach the investors. will be to popularise asset allocation and consequently we launched ICICI Prudential Balanced Advantage Fund. Later, we realised that in addition to equity, debt, and arbitrage, investors also wanted gold as a part of the asset allocation mix.

\"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, MAY-JUNE 2022 ICICI Prudential AMC's S Naren on his investment mantra and more Business Standard | May 25, 2022 Soaring inflation, global central bank policies and the Ukraine war have dampened sentiment across global financial markets. What does S Naren, of ICICI Prudential AMC think of the developments? It seems that the markets have caution creeping in? Or, when • A further correction will make Sankaran Naren been shaken and stirred by do you think they’ll become markets more attractive; ED & CIO the recent economic develop- cautious and throw in the towel investors should realise this ments. Have they finally put all as well? ICICI Prudential Mutual Fund the negative news behind? • Good time to start systematic •Worried as regards retail investment plans (SIPs) • Corporate earnings are not a •Narrative of global central investors’ participation if problem banks has changed markets continue to fall Is this a flash correction within a structural bull-run like we • In an inflationary market (2002- • Markets likely to remain volatile • If retail investors were bulling at saw in 2020, or is there more 2008), corporate earnings is 17,000/18,000 (Nifty), they to it? never a problem •US Fed is focusing on should remain bullish now as managing inflation well • V-shaped movement in 2020; a •Financial system in much similar movement is ruled out better shape now (compared to To what extent are the markets • Foreign institutional investor for now 2017-18); can absorb shocks discounting the possibility of selling was unbelievable the Reserve Bank of India being • Synchronized liquidity support •Challenges were only on very aggressive with the rate • Large-caps have more safety from global central banks in market valuation and not hikes over the next three to six margin compared to mid, 2020 supported markets earnings months? small-caps • No sharp rallies in the near- Where do you think the • The AMC is comfortable with But at 17,000/18,000 (Nifty), a term. India, however, remains a leadership will emerge from in the possibility that RBI will have number of investors were good story for investors case the markets were to stage to increase rates ignorant and had a laid back a recovery? attitude about what the US Fed • India more attractive from a •Difficult to say whether the may do. The caution, or worry, long-term perspective than • Banks and autos likely to lead markets are factoring this in has only crept in now. Isn’t that most emerging markets a scary sign for the road ahead • Capex-related sectors, stocks • Not surprised with the recent for the markets? A lot of heavy lifting was to be of public sector enterprises out-of-turn rate hike, and likely done by the growth in hikes in June and August •We have been cautioning corporate earnings. Do you against the likely headwinds think this is another setback A lot of support has been lent to waiting to happen for the the markets by the domestic •Markets more attractively markets as India Inc copes with institutions and the retail valued now than three to six rising input costs amid wage investors. Do you see a sense of months back pressures? Invest in mid and small caps through SIPs, not lumpsum Contd. from page 1 are invested in global funds Some of these listings corrected We hope, therefore, that issuers priate products in the debt should not redeem at this point substantially. Since most of the and investors are likely to be mutual funds. But we believe of time and invest in category like New Age and Internet busi- more reasonable in valuation that floating interest category is a passive multi-assets for inves- nesses have not been listed, techniques that they adopt in very interesting category which ting in global funds because the we are happy as a mutual fund future instances. benefits out of such an environ- global stocks have corrected industry that as and when they ment. And unlike decades ago, much more than Indian stocks. list in future, they will be at more What is the ideal approach to we are in a position to benefit out reasonable valuations. We will debt fund investing today? of increasing interest rate regime How do you perceive value in get the benefit of more reason- but only if investors choose to some of the new age Internet able valuation given that the first People believe very often that in invest in this category. businesses that listed amid few listings in this segment have periods of increasing interest fanfare recently? seen losses for many investors. rates, it's difficult to find appro-

\"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, MAY-JUNE 2022 Interview Fixed income may become attractive in 3-6 months Outlook Money | May 2022 The debt fund market has come a time, we thought we should not Typically, investors look at Manish Banthia long way since the IL&FS-led look at YTM but risk in the higher returns, which comes Senior Fund Manager - crisis of 2018, followed by the portfolio. It was a difficult period with a higher degree of risk in Covid disruption. for us as we had to justify lower debt funds. What is your take Fixed Income YTMs in the portfolio compared on this? ICICI Prudential Mutual Fund Manish Banthia, senior fund to our peers. manager-fixed income, ICICI If you are looking for extra- years. For instance, we created Prudential Mutual Fund, has When the tide turned, investors ordinary returns from a debt an investment risk department been through all the challenges started to understand that risk is fund, then, of course, you will many years ago. We also created and is successfully managing 24 as important as return. This went have to take very high risk. If your many macroeconomic schemes that total `1.47 lakh on till 2020 when investors only benchmark return is, say, 6 or 7 frameworks, which have helped crore in assets under manage- talked about risk on credit; they per cent, you don’t need to take us take decisions in terms of ment (AUM), the second-highest did not understand then that too much risk to get 8-9 per cent. duration risk, and when it should in the industry, either there was a lot of money to be But if you are aiming for 12-13 be higher or lower. We have independently or along with co- made. per cent, then the risk will be come up with a framework for fund managers. much higher. So, effectively, risk debt valuation risk too. Investors were bothered about and return go together. Six of his funds have made it to risk though it had come down What is the investment the OLM 50 list under hybrid and substantially after the Reserve However, there are cycles when strategy for the ICICI Prudential debt categories. He shares his Bank of India (RBI) cut rates and riskfree returns are higher, and All Seasons Bond Fund? insights with Outlook Money’s infused liquidity. Risk had vice-versa. In debt, unlike in Kundan Kishore on the funds he This is a unique fund where we manages. Edited excerpts: There are cycles when run a lot of strategies, which are risk-free returns are outputs of the framework rather The broad idea for investment higher, and viceversa. In than being based on individual is to get risk-adjusted returns. debt, unlike in equity, fund managers’ decisions. How can one assess risk, these cycles come after especially in the debt space? long periods but do not Some of these have helped last long. achieve consistency. They help Every market will have periods us maintain a balance even when when risk levels are very high. reduced significantly even equity, these cycles come after things are wrong. The name itself But there are times when risk globally, given ample fiscal long periods but do not last long. suggests that there is no need to levels may seem high but are stimulus. That was the period The IL&FS crisis happened in time the market. The idea to not. when risk could be taken on the 2018 but it was a smooth ride six launch this fund came from the credit side. to eight years before that. balanced advantage fund (BAF) For example, from the equity category as investors need not perspective, in April 2020, risk There are periods when you All the funds you are managing time the market in those seemed very high, but it wasn’t. need to be in the first gear, and have done well. How do you schemes. Similarly, during periods like periods when you need to shift to decide on duration and 2007 or 2018, it seemed there second, third or fourth gears. allocation when it comes to What we have realised is that was no risk (but that was not the portfolio construction? investors may choose the right case). Even now, people think Most people make mistakes on fund but don’t know the right there is no risk in equity, but the this aspect when it comes to You have to be opportunistic in time to invest. If you look at past actual level of risk is high. investing. If you do this exercise the market. By that I mean you returns, it may look very healthy properly, your risk-adjusted need to have the right framework in a plain-vanilla long-only fund; There are points in time when returns would be better than and thought process. We have the challenge is that the fund people become complacent and benchmark returns and that of created a lot of processes for may generate returns but think that risks are low, but the peers. many things in the last eight to 10 investors may not. underlying aspects are probably changing and, therefore, you The All Seasons Bond Fund is need to assess the risk extremely flexible. It can have accordingly. (securities with) a duration as low as five years or as high as 10 The IL&FS crisis was a big years. Further, it can completely lesson for investors. How can move to government securities, investors avoid falling into such situations? Before the IL&FS crisis, investors and distributors were looking only at (higher) yield-to-maturity (YTM), without questioning the portfolio quality. At that point of

\"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, MAY-JUNE 2022 it can have AAA corporate bonds, We have a meeting every 15 days enemies as far as markets are is more of a solution for and a large proportion of AA to review and take a call concerned. When the market is investors. corporate bonds. according to the changing nature expensive, there is a lot of greed of the market. We have been around; when it is cheap, there is What would be your advice for Does such flexibility increase successfully tiding over market a lot of fear. investors in the current the risk factor? volatility in the last seven to eight economic scenario? years. Considering that, it is difficult for The framework for the fund gives individuals to do that (move This is the year of asset us a perspective of where the How is ICICI Prudential differently from the market) on allocation. We are almost at the opportunities lie, and we assign Balanced Advantage Fund their own. end of the recovery phase and assets accordingly. We do not different from others in the getting into the expansion phase enter the market when there is same category? There is a general perception of the economy. There are momentum, but when there is that only the equity component headwinds, such as economic deep value and margin of safety The last 10 years of managing adds to the returns in a BAF and cycles, especially in the US, available. the BAF has given us a lot of the debt component just commodity prices are higher confidence. There were many provides a cushion. Is that true? than what they should be and For example, in 2020, when the instances when the market view higher leveraged market spread expanded, investors and the way the BAF was Though it appears that the debt valuations compared to the were worried. The risk managed was different. It is very component in BAFs is only 20-25 earning cycles. Given this perception was that one should difficult to run a large fund per cent, there are times when scenario, asset allocation is the invest only in AAA-rated differently from what the broad equity goes down to that level. key for investors. securities. The market was market view is. So, at that point, the returns completely dislocated but the come from debt. It is important As far as fixed income is framework told us to increase Before Covid, BAFs had very low to understand that BAF is a concerned, the low interest rate the AA-rated allocation to the equity allocation and the general hybrid fund. regime is about to shift, as RBI fund in March to June 2020. perception was that the market is has already indicated. In the next likely to move up. Post Covid, The good part is that investors in three to six months, rates will Similarly, in 2017-18, the model nobody was willing to take equity BAF never ask questions. adjust, and fixed income will pushed us towards high-duration risk but could increase equity Whatever time you enter, the become attractive. This is a rising securities as interest rates were exposure without making too returns are pretty much interest rate environment and headed south and so we ran a much noise. Suddenly, BAFs’ consistent. one should invest in floating rate duration of seven-eight years. exposure to equity went up. It bond funds. was the framework that helped If you look at long only equity Considering the dynamic us do this; individuals couldn’t funds, the tendency is to invest nature of the market, how have done that. more when the markets are hot. frequently do you review the So, when the markets go down, framework? Fear and greed are the biggest the experience is really bad. BAF There are headwinds such as economic cycles, high commodity prices and higher leveraged market valuations compared to the earning cycles. 6 `39,478.67 cr The number of schemes in Scheme’s Assets Under Management OLM 50. Flagship fund: ICICI Prudential Balanced Advantage Fund 12.31% 3-year returns (CAGR)

\"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, MAY-JUNE 2022 Interview Floating rate bonds stand to gain in current market scenario Financial Express | May 05, 2022 Floating rate bonds have a the normalisation journey. floating rate bonds in many of Manish Banthia positive correlation with rising our schemes. Senior Fund Manager - interest rates and, therefore, The debt market in India has returns on these bonds are been very volatile. Do you For an investor looking to Fixed Income positively aligned to rising rate expect this trend to continue? invest amidst the prevailing ICICI Prudential Mutual Fund scenarios. uncertainties, which category We expect volatility to be high on of debt funds would you floating rate is a category which Given the current market the shorter end of the curve recommend? stands to gain in the current context, the optimal way to given that the curve is very steep. market scenario. generate returns from fixed However, the longer end of the We would recommend investors income is by investing in floating curve will remain more defensive to consider floating rate What is your take on credit rate securities, says Manish as the curve flattens out. securities as it is linked to market assets? Banthia, Senior Fund Manager, benchmark rates. It could be ICICI Prudential AMC. ICICI Prudential has increased either a three-month T-bill, a six- We are and have been positive exposure to floating rate bonds month T-bill, or the Mibor rate on the credit cycle since 2020 In an exclusive interview with in most of its schemes. What is (overnight rate) and they offer a due to the deleveraging cycle the Sanjeev Sinha, Mr Banthia the reason? spread over and above that. economy has been through over shares his views on why ICICI the past couple of years. Prudential has increased its Given the prevailing conditions, As the Reserve Bank of India exposure to floating rate bonds we are of the view that the increases interest rates, the Having said that, however, in most of its schemes, and optimal way to invest is through market benchmarks also move spreads today are tighter than which category of debt funds is floating rate securities. This is up. Here, along with a change in what they were two years back. more suitable for investors in the because of their inherent nature market benchmark, your coupon So, there is a possibility that current market scenario. to adjust to rising interest rates too changes at periodic intervals. spreads will normalise post Excerpts: and coupons which accrue to which credit assets will look investors keep rising as the For instance, government very attractive. India as an economy has crossed benchmark or overall RBI rates securities which are linked to six- the recovery phase and has move higher. month T-bill rates are issued in moved into an expansionary different maturities – five years, phase. This means RBI will have Also, floating rate bonds have a 10 years and 11 years. When the to make rates more neutral and positive correlation with rising RBI increases interest rates, the normal as the rates were in line interest rates and, therefore, three month and six-month T-bill with the crisis policy stance. returns on floating rate bonds are rates move higher. So, every six With the RBI hiking rates by 40 positively aligned to rising rate months, your coupon is being bps, we believe this is the start of scenarios. Hence, we added reset higher. Hence, we believe How to invest in rising interest rate scenario Fortune India | May 27, 2022 Negative or abysmally low rates are to be blamed for dis- In a rising interest rate scenario, From valuations perspective, he returns by most debt mutual appointing returns in the debt says Banthia, products like adds, these instruments are fund schemes in the last six- schemes. floating rate funds make a lot of trading at very cheap valuations month, one-year and three-year sense as they are defensive. as compared to other instru- periods have spooked investors. Manish Banthia, Senior Fund These funds also provide you ments like corporate bonds, Manager, ICICI Prudential AMC upside as the interest rates move fixed interest government Consequently, debt mutual explains what to expect from the up. securities and are hence suitable funds have witnessed a 13% fall bond market in near term and its in the current market context. in assets under management impact on the debt fund returns. “Till the time we see the Reserve (AUM) y-o-y to `9.10 crore. He also elaborates the Bank of India (RBI) getting into Month-on-month, the AUM is investment strategy for debt interest rate cut scenario again, down by 2.3%. High inflation, fund investors to benefit from floating rate instruments will suit rising bond yields and interest the current bond market. investors,” says Manish Banthia.

\"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, MAY-JUNE 2022 How Anand Shah of ICICI Prudential uses BMV methodology to pick potential wealth creators The Economic Times | May 09, 2022 Anand Shah more aggressively than antici- interest rates in the coming survive any difficult times but Head - PMS & AIF Investments pated. Given these develop- quarters? may also survive an influx of ICICI Prudential Mutual Fund ments, it would be prudent for competition. investors to focus on asset Volatility in broader markets is We follow a BMV (Business, allocation which would in turn aid likely to continue given the rise in f)Also, in good times such Management and Valuation) in mitigating the overall portfolio inflation and interest rates. As a companies tend to thrive. Once framework, which aims to volatility to an extent. result, an investor looking to potential businesses are identify resilient companies with invest in mid and smallcaps identified, we aim to focus on potential for long-term growth, Investors looking to allocate should be mindful of the management quality, corporate says Anand Shah, Head - PMS money towards equity for the fundamentals and gauge if the governance standards, and and AIF Investments at ICICI long term, can consider investing company has the wherewithal to ESG parameters to name a few. Prudential AMC Ltd. systematically. withstand the changes under- way and reach an investment g)The next step is valuation. In an interview with ETMarkets, What is your call on the decision accordingly. Good business and competent Shah who has over 2 decades of earnings which have come so management may not always experience in fund management far? Any sector which has What is your mantra when it come cheap. Thus, we aim to said: “Through this framework, disappointed you? comes to picking stocks? buy good businesses run by we aim to identify prominent competent management, at businesses, with competent The corporate earnings for the Here are a few rules that we reasonable valuations. How- management, at reasonable March 2022 quarter have been follow - ever, we would avoid buying a valuations.” Edited excerpts: encouraging and has been company at any price. largely undeterred by the Russia- a)We believe the key is to find Do you think the age-old adage Ukraine conflict. companies with potential for Inflation is likely to emerge as of ‘Sell in May and Go Away’ superior and sustainable the biggest threat to equity will come true in 2022? We have seen an uptick in earnings growth. markets and India Inc. Any earnings growth among retail sectors that could be impacted Equity markets across the globe banks, power utilities, indus- b)It is the delta in long-term the most and why. and in India may continue to trials, materials and IT services earnings growth on which we remain volatile owing to persis- companies compared to pre- are focused, which we believe The impact on demand due to tent geopolitical issues in the Covid times. may result in a rerating of a price hikes or impending price month of May. company. hikes is something to watch out PAT growth of certain manu- for over the next few quarters. Rising commodity prices are facturing-oriented sectors have c)We follow a BMV (Business, Margin guidance provided by expected to impact the Indian surprised positively. However, Management and Valuation) corporates will be a key aspect to macros, with crude oil prices margins for India Inc. have come framework, which aims to monitor. rising to a 14-year high. There are under pressure due to rising identify resilient companies fears that the rising food and fuel input prices. with potential for long-term Do you think investors will be prices could adversely impact growth. better off going underweight global growth. Owing to this consumer dis- on stocks that are likely to get cretionary sector has been Through this framework, we impacted from rise in inflation, Then there is the risk of the US negatively impacted largely on aim to identify prominent interest rates, etc. Fed tightening the policy rate expected lines due to rising businesses, with competent prices, weak consumer demand management, at reasonable We believe a much closer and rural slowdown. valuations. analysis is required before reaching a decision. This is How are you looking at broader e)With resilient growth and because price volatility is a given markets in the current sustainable competitive when it comes to equities. But, scenario? Do you see some advantage, a business may the important aspect here is that volatility amid a likely hike in have the potential not only to prices of good businesses may The impact on demand due to price hikes or impending price hikes is something to watch out for over the next few quarters. Margin guidance provided by corporates will be a key aspect to monitor. Contd. on page 8

\"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, MAY-JUNE 2022 Interview Disappointment in corporate earnings is likely Business Standard | May 31, 2022 As markets grapple with the RBI and the US Fed hike import substitution, thereby Anand Shah domestic and global headwinds, rates again? emerging as a key manufac- Head - PMS & AIF Investments ANAND SHAH, head-PMS and turing destination. AIF Investments at ICICI There will be a series of rate ICICI Prudential Mutual Fund Prudential AMC, tells Puneet hikes but the pace and quantum Further, the government's PLI Wadhwa in an interview that the will depend on how the economy scheme has helped improve the What's the ideal portfolio market is pricing in a rate hike not in the US and the rest of the manufacturing setup in India. construct you are suggesting to only in June, but up to December. world behave. Early signs of a Despite all the ingredients to do your clients? Edited excerpts: slowdown are already visible - in well in select manufacturing both Indian and global markets. industries, we never got all the We are proponents of asset Do you think the markets can So, the market is pricing in much pieces of the puzzle right. That allocation. So, based on one's now see a time-wise more than a rate hike - not only in seems to be changing now. analysis of assets and liabilities, correction, after the sharp price June but up to December. This is risk appetite and return expec- correction? already reflected in bonds and to Your sector preferences at the tations, one will have to decide an extent in the equity market. current juncture? on asset allocation. There is no Sectors with strong global one-size-fits-all approach here. linkages, like information tech- Now, if the economy slows down We like banks. After the But having decided on asset nology (IT), have already seen significantly, particularly in the significant clean-up since 2015, allocation, for equity allocation, some corrections. To some ex- US, a lot of these rate hikes may growth will pick up in the we have been offering our clients tent metals, too, have corrected not happen, or they could get quarters ahead and net non- a differentiated portfolio, which after the recent move in terms of pushed back further into 2023-24 performing assets (NPAs) are is overweight on manufacturing export duty cuts. Similarly, (Fy24). If that is the case, both unlikely to be high as slippages and underweight on consump- several foreign institutional equity and bond markets shall will be lower than recoveries. So, tion. This is contrary to what we investor (FII)- owned sectors benefit in the short term. So, a lot we are seeing a very benign have seen over the past few have also seen a sizable depends on how consumption environment for banks to im- years, wherein consumption did correction. Going forward, India- will be impacted after rate hikes. prove their earnings and ROE much better than manufacturing. oriented companies may come structurally from hereon. We are The risk-reward is more favou- under pressure due to the Your recent note sounds bullish positive on telecom, as the rable in select manufacturing slowdown in consumption on manufacturing as a theme. sector stands to benefit from companies now versus the owing to pressure from rising What is driving your competition consolidation and overall market. costs of both fuel and food. conviction? sticky consumption. So, some disappointment in corporate earnings is likely. The current geopolitical turmoil We selectively like real estate as However, prices in these pockets has accelerated the push for there has been a meaningful rise are yet to reflect the impact of a business leaders to rethink their in the purchasing power among domestic slowdown, which is supply chain strategies, espe- those who are a part of the likely to play out over the next cially their manufacturing hubs. organised sector. Both resi- few quarters. Global industries have been dential and commercial spaces looking to broad-base supply look attractive from a bottom-up Do you think there can be sources away from China, and perspective, especially in metros another round of selling once India has been focused on and other emerging markets. How Anand Shah of ICICI Prudential uses BMV methodology to pick Contd. from page 8 potential wealth creators good enough reason to reduce fall due to market factors, but half of 2022? the ongoing results season and an investor’s exposure in a eventually will tend to recover. geopolitical factors will have an particular company. A) Over the March 2022 quarter, influence on the direction of So, the need here is to identify we saw foreign portfolio inves- flows of FPIs and domestic When buying a business, businesses that have been tors increasing exposure to institutional investors. investors should maintain a long- resilient in tough market situa- metals & mining, food & beve- term view. One may consider tions and has the capacity to rages, telecom, and utilities, by FIIs remain net sellers in Indian selling if the investment thesis mitigate the impact of rising cutting exposure in software, markets for some time now. drawn at the time of investing inflation and interest rates. financial services, and consumer Does it make sense for has altered due to external products. investors to lighten up factors thereby creating a The caveat being demand may positions in FII-owned stocks negative long-term implication. get impacted over the short They continue to remain under- where foreign investors have a term. Thus, investors should weight in discretionary and double-digit stake? In the case of our portfolio maintain a long-term focus, and staples as compared to the names, if a company continues continue to hold on to good sector weights in the BSE 500 We believe FII selling is one of to meet all the parameters under businesses. index. the many data points available. our BMV framework, we will There will always be some continue to hold that name. Where do you think smart Going ahead, the guidance buying and selling activity going money is moving in the first provided by corporate India in on. So, just FIIs selling is not a

\"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 9TARAKKI TIMES, MAY-JUNE 2022 Why Gold ETFs should be in your portfolio this Akshaya Tritiya Deccan Herald | May 02, 2022 Chintan Haria the largest consumer of gold Apart from cultural reasons, gold short-term or long-term, Head - Product Development globally with Indian households has an important role to play in depending on the holding period. & Strategy owning over 11% of the world’s one’s portfolio as that of a One can borrow against gold ICICI Prudential Mutual Fund total gold. diversifier and a hedge against ETFs, too, as the units are treated inflation. as the units are treated as Gold has been an integral part of However, this Akshaya Tritiya, collateral. Indian culture for ages, with instead of buying physical gold, Reasons to buy gold ETF occasions like Akshaya Tritiya you have the option to buy gold The beauty of gold ETF is that an considered very auspicious for in the form of an Exchange Affordability: The cost of buying investor can start investing even buying gold. Traded Fund (ETF). There are gold ETF is very low when with very small sums, unlike some distinct advantages of compared to buying physical physical gold where one needs a Since time immemorial, it is investing in gold ETF along with gold. Here, there are no storage sizeable corpus. Also, one can believed that buying gold on the benefits of investing in gold. or insurance costs attached. plan to invest smaller sums at Akshaya Tritiya, which is Also, there are no leakages like regular intervals as a means to celebrated as a festival of wealth, Gold ETF is a fund that invests in making charges, too. accumulate a significant number brings good fortune and pros- gold bullion of very high purity, so of units of gold ETF over a period perity to the household. Be it it’s as good as investing in Convenience: ETF can be of time. rural or urban, Indians across the physical gold. But the difference bought like an equity share country have an affinity for here is that it is held in electronic through your trading account. International gold prices are owning gold for reasons such as form in your Demat account. You can buy or sell your gold coming out of a 10-year conso- store of value, corollary to wealth ETFs whenever and wherever lidation. High inflation amidst and also due to it being linked to The ETF units are listed on you want. Unlike bars/coins/ financial uncertainties due to many festivals and rituals. exchanges and can be bought jewellery that can’t be sold in rising global interest rates and and sold during market hours parts, you can sell gold ETF units geopolitical tensions are likely to All of these reasons have played from the comfort of your home in multiples of 1 unit. support gold prices going ahead a key role in making the country or office through an Asset as a safe haven investment. Management Company (AMC) Security: Gold ETFs buy gold Hence, investors can consider a website/app or your stockbroker. bullion of only 99.5% purity or 10%-15% allocation to gold above, which takes away the through gold ETFs and gold ETF Investors can also invest in gold purity concerns. FoF in their portfolio. ETF Fund of Funds (FoF) which does not require a demat/trading Efficiency: It is a tax-efficient The writer is the Head of Product account i.e. the approach is way of owning gold as income Development & Strategy at ICICI similar to investing in any other earned from gold ETF is treated Prudential AMC. mutual fund scheme. as capital gains, which can be Gold ETF is a fund that invests in gold bullion of very high purity, so it’s as good as investing in physical gold. But the difference here is that it is held in electronic form in your Demat account.

\"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, MAY-JUNE 2022 Fund Review ICICI Pruential Value Discovery Fund Long-term performer Hindu BusinessLine | May 21, 2022 Value-oriented funds tend to be better at containing losses during prolonged market corrections With rising interest rates, surging inflation Sticking to its mandate 15 years now average a 16-17 per cent CAGR and a global slowdown creating a wall of Not all equity funds that describe them- against the benchmark Nifty500 TRI's 13-14 worry for stock markets to climb, Indian selves as 'value' funds actually give a high per cent. equities have been correcting quite sharply weight to valuations in their stock-picking. in recent weeks. This presents a good The kind of stocks making up a fund's Though the fund remains heavily large-cap opportunity for long-term investors to add to portfolio are usually a good indicator on tilted with an 82 per cent allocation to large- their equity holdings, provided they have the whether a fund is truly value-oriented or caps in April 2022 compared to 65 per cent stomach for interim losses and can hold on chases momentum. for the category, this can work to the fund's for six or seven years. advantage in a correction where small and Compared to the value category, ICICI Pru mid-caps may suffer disproportionate The correction may take some time to play Value Discovery has been consistently damage. out, and any future bull market may be led by underweight in financials (19 per cent a completely different set of sectors. weight), mainly holding corporate banks and Negatives Therefore, it is important to make your fund overweight in energy (17 per cent weight), The fund's large size (over `23,500 crore choices carefully now. telecom (12 per cent) and pharma (11 per compared to under `9,000 crore for most cent) which tend to be much smaller peers) takes a significant toll on portfolio ICICI Pru Value Discovery Fund, an 18-year- weights in the peer funds. Four of the top manoeuvrability. The fund may find it old fund that adheres stringently to the value five holdings of ONGC, Sun Pharma, NTPC, difficult to build meaningful positions in mid mandate, may be a good bet for equity SIPs. Bharti Airtel and ICICI Bank are non- and small-cap stocks that offer value. Since 2021, the fund has pulled out of the consensus holdings. Should its sector or stock calls go wrong, extended patch of poor performance that unwinding and rebuilding po-sitions will take weighed it down between 2016 and 2020. Value funds face a challenge in walking the considerable time, dragging performance. Three factors make a case for buying this thin line between buying cheap stocks fund now. which may turn out to be value traps and Fundas to know stocks with promise that trade below Time for value funds intrinsic value. After struggling with this • One-year rolling returns with an average of 22 Value-oriented funds tend to be better at balance between 2016 and 2018, it seems to per cent containing losses than growth funds during have cracked the code lately. Between April deep or prolonged market corrections. They 2021 and April 2022, the fund has cut • Fund had 82 per cent allocation to large-caps in also tend to be better at participating in the exposure in sectors such as software, April 2022 early stages of a new bull market. metals, automobiles and cement, while adding to positions in corporate banks, oil • Large-size fund at over ` 23,500 crore vs under This has been tested in the last two market and power. ` 9,000 crore for most peers cycles. In the last leg of the dot-com bull run from end-1996 to end-1999, the MSCI India The value style also needs a seasoned FUND FACTS Growth index was up over 200 per cent, manager at the helm, who can hold on to his while the MSCI India Value Index delivered conviction in a momentum-driven market. Assets as on just a 10 per cent absolute gain. But when ICICI Pru Value Discovery is managed by Apr 30, 2022 the markets went into free fall from early Sankaran Naren, a seasoned value style 2000, the value index began to outperform manager along with Dharmesh Kakkad. `23,527 cr and continued to do so in the new bull market from 2003. Improving performance Between end-1999 and end-2006, the MSCI ICICI Pru Value Discovery went through a Financial Services (%) Value Index more than trebled, while the bad patch between 2016 and 2020, when its Energy 18.9 Growth Index managed to just double. The performance significantly lagged both peers Telecom 16.9 MSCI India Growth Index again outdid the and the equity category. The weak Healthcare 12.4 Value Index in the bull run from 2005 to mid- performance during that period appears Technology 11.6 2007. But as the global financial crisis hit, it attributable to the fund's investments in Others corrected and the MSCI Value index began deep value stocks that failed to re-rate, its 7.2 to pull sharply ahead, outperforming until large-cap focus (peers had higher mid and 33.0 2011. small-cap allocations) and the market's strong growth leanings. Rolling returns (%) In an entrenched bull market, the growth style usually outperforms the value style But with the deep correction of March 2020 ICICI Pru Value Discovery because investors become less sensitive to shifting the market mood, ICICI Pru Value valuations and chase after stocks that are Discovery's performance has also charted a Nifty 500 TRI delivering on business growth and visibility. recovery. In the last three years, the fund's But when the drivers of the bull market get one-year rolling returns have been ahead of 16.6 17.3 17.8 challenged, those very stocks can get its category about 68 per cent of the times, 13.2 15.2 15.6 swiftly de-rated. In such cases, stocks with a with average returns of 22 per cent against higher margin of safety (value stocks) tend the category's 20 per cent. This has helped 3 years 5 years 10 years to better contain losses and prepare your lift its long-term record. Its three-year, five- portfolio for future pullbacks. year and seven-year rolling returns in the last As of May 20, 2022 Source: Aceequity Based on daily rolling data from May 2007 to May 2022

\"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.\" Mother’s Day Special 11TARAKKI TIMES, MAY-JUNE 2022 Every day of our lives is an ode to our Mothers.. They're Shining, Thriving & Winning Everyday At Life! ICICI Prudential Mutual Fund in association with Humans of Bombay initiated a one-of-its-kind Mother's Day Campaign. The key idea was to encourage mothers to invest and attain financial independence over the long term through messages from fellow mothers' of ICICI Prudential Mutual Fund (IPRU). IPRU moms shared their investment journey they embarked on for themselves and their child/children. A post in its typical Humans of Bombay carousel form, advised mothers and every other woman out there to invest for their child's future, invest for themselves with an aim to financially secure their own and kid(s) future. The mothers at IPRU encouraged readers to invest through SIP in mutual funds, but with a long term view. The posts successfully triggered a conversation among audience about the need for every mother to be financially secure, independent and why it is important for every woman to invest. As a response to the post, audiences shared their personal journey about how they resonated with these mothers' stories and how they were motivated and inspired to take necessary measures towards achieving financial independence. Speaking about the campaign, Abhijit Shah, Head – Marketing, Digital & Customer Experience, ICICI Prudential AMC said, \"Through the mom's at ICICI Prudential AMC, our aim was to share their experience with other mothers towards achieving financial freedom. We invited others mothers' too to share their experiences by interacting through the post, which made the entire Mother's Day experience more enriching.\" Overall Impact of the Campaign 6,61,524 2,79,699 26,168 Total Reach Total Impressions Total Engagement

\"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, MAY-JUNE 2022 Striving Success Stories S Naren hails PIFAA for its illustrious efforts in popularising mutual fund; launches PIFAA Striving Success Series Book Pune Investment and Financial Ambassadors Association popularly known as PIFAA hosted an engaging evening for its members yesterday. The aim was to recognise the achievers among its fraternity members. Making the event more special was the launch of the book Striving Success Stories by veteran fund manager S Naren, ED & CIO of ICICI Prudential AMC. In the investment universe, PIFAA is one of the most well-known Association of MFDs in the country. Their initiatives to empower investors and MFDs have been exemplary and well recognized by the industry. For more than a decade they have worked diligently towards developing skills and technical development of MFDs. Consequently, the investors have received a more comprehensive interaction and guidance for their money matters. The book launched chronicles the journey of Bharat Phatak and Amit Bivalkar along with 35 other illustrious achievers. Apart from reflecting on their journey, the book serves as a guiding light for future financial advisors as these learned members have generously shared their learnings with the readers. The book is packed with real-life stories of members who triumphed over various odds to reach the pinnacle of success in their advisory and distribution business. At the event S Naren shared insights on the equity markets and hailed PIFAA for its illustrious efforts among the masses in popularising mutual fund as an investment product. Further Naren said, “Equity market is likely to remain volatile till the time the US Fed is focused on managing inflation.” Since this is the first major correction post the pandemic times, he observed that it remains to be seen how retail investors behaviour will pan out in the times ahead. Speaking on investments he added that largecaps have more safety margin compared to mid and small-caps. Speaking at the event, Mr.Harshavardhan Bhusari, Former President of PIFAA said, “My congratulations to all the partners this evening. PIFAA takes pride in your achievements and wish that many more are inspired and encouraged by your success. We are also happy that we could bring out the stories of leaders in MFD fraternity at Pune with the help of ICICI Prudential Mutual Fund in the form of this book. We thank them for their support and backing along the journey of publishing this book.” Speaking about the making of the book Mr. Gaurav Jajoo - Regional Head, Retail Sales & Distribution, ROMG, ICICI Prudential AMC said, “It was a privilege working with PIFAA members. Several of them have been associated with the mutual fund industry right from the beginning and have evolved with the various changes in the ecosystem. We believe documenting their journey will be a beacon for the future members of the fraternity.”

\"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 13TARAKKI TIMES, MAY-JUNE 2022 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY B Giri Babu Mutual Fund Distributor B Giri Babu, 40, a Hyderabad-based mutual fund distributor, has an AUM of ` 84 crore with a monthly SIP book of ` 90 lakh. With a focus on adding SIPs daily, he believes mutual funds can offer solutions for life's every financial goal. He believes proper financial planning for clients and continuous engagement with them is the approach that has helped him succeed. Babu, a Civil Service aspirant, was at a crossroads in 2005 after five years of continuous preparation. \"I could not crack the Civil Service. I wanted to pursue my career but did not know what to do,\" he reminisces. His friend suggested he join a financial firm. Since he was strong in theory, Babu passed the interview and thus entered financial sector in 2006.He was mainly selling insurance. Never satisfied, he kept changing firms until 2014 when he met Brijesh Dalmia, a Kolkata-based successful distributor and founder of Master Stroke, who empowers distributors. \"I attended his session in November 2014. He changed my perception about distribution and shed light on how to be a successful distributor,\" says Babu with excitement. Babu immediately resigned from his job and started on his own in 2015. He earlier thought that having a ` 20 crore AUM should be his lifetime goal, but the Dalmia meeting changed his thought process. Right from the start, he aimed for a target of ` 100 crore and has never looked back since. \"I did not even collect my relieving letter from my last employer as I knew I would never need it any longer,\" he quips. Babu remembers that the early days were not an easy one. Income generated through MF business was not enough to run his house. It was a slow but steady start. He was clear that this field requires a mix of hard and smart work, with clients' benefits placed at the top. Over the next two years, he created an asset base of ` 6 crore. By 2016, Babu tapped into the power of digitalisation and moved completely online for transactions. \"The demonetisation move was a big kick. It was a challenging phase,\" he recalls. Markets were in doldrums, but Babu focused on SIP and created an SIP book of ` 10 lakh by then. The journey from ` 5 crore to ` 84 crore AUM in the last five years has been on account of his consistent engagement efforts with existing and prospective clients. He proudly says that all his clients are reference-based. \"When I visit clients, I try to understand his psychology towards money and investment, his existing investments and liabilities. I don't talk about mutual funds, but present to them the solutions MFs offer,\" says Babu. A passionate Babu says he is in the business of earning investor trust. \"I don't think I will ever retire. I will sustain my passion till my last breath. Challenges will keep coming, so will opportunities,\" says Babu confidently. He expects to touch an AUM of ` 100 crore this financial year and an SIP book of ` 1 crore. \"My SIP book should be at least 1% of my total AUM at any point in time,\" he outlines his strategy. Summing up his success mantra, Babu, says, \"Success is not an overnight journey. Here, one has to take steps instead of elevator if you wish to enjoy the trust of your investors. Work hard and always remain focused on your clients' benefits.\"

\"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.\" 14 TARAKKI TIMES, MAY-JUNE 2022 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Bhushan Wani Mutual Fund Distributor Bhushan Wani, 39, a Pune-based mutual fund distributor, has ` 352 crore of investors' assets. Servicing 3,000 families with a SIP monthly book of ` 3.25 crore, he is backed by 18 years of experience in MF distribution. Fulfilling his clients' financial goals is his utmost priority. His satisfaction emanates from good investment experience rendered, which keeps him both energetic and passionate about MF distribution. Wani's mother was into distribution of small postal savings products since when he was just one-year-old. This was when his father became physically differently abled. \"We had a financial crisis to deal with. I would pick up collections and visit customers since when I was in 4th standard,\" recalls Wani, a computer teacher before joining MF distribution. Years later, in 2004, he joined his uncle's financial distribution business. Having an interest in mathematics and economics, Wani was excited about the financial sector. Market was on a growth trajectory then, which benefited him immensely. Initially, he faced little problems. “Everything was well till 2007. We had reached a SIP book of ` 1 crore before the 2008 crisis hit,\" says Wani. Within 9 months, his SIP book was reduced to ` 35 lakh - a decline of 65%. \"There was a massive crack in our business - a challenging situation,\" he says. \"We were definitely not experienced enough to handle the situation then and hence could not prevent redemptions and SIP termination,\" he remembers. It was an experience which made us learn about the business, he adds. As Wani's experience and learning grew, he started implementing the same in his business. \"We learned that though we have HNI clients, we can't rely on them alone. Rather, we need to increase retail participation,\" he observes. Lessons from the 2008 crisis ensured that Wani was better equipped to deal with investors when the pandemic struck. In March 2020, when markets plummeted amidst the Coronavirus, Wani and his team of 15 worked hard (first lockdown) and collected a SIP contribution of ` 48 lakh and a lump sum of ` 22 crore. \"Remarkably, there was no redemption during that phase,\" he quips. For clients' financial planning, Wani believes in his own research and analysis. Out of the hundreds of schemes offered by the mutual fund sector, Wani has filtered 48 schemes that he primarily recommends. \"I try to analyse the holdings of schemes and understand the business cycle of companies. I think investors should remain invested at least for 6 years to get the best experience,\" he explains. With fully digitalised operations, Wani strongly recommends averaging of investments since inception. A SIP of ` 5000, for instance, is divided into 5 parts and he makes sure investors get units on five different days. \"If the SIP amount is higher, I try to allocate it throughout the month so my investors get the best cost averaging,\" he says. Having his investors spread across the country and globe, the SIP amount ranges from ` 500 to over ` 60 lakh per month. He considers all investors equal, irrespective of their investment amount. According to him, investors mature. \"An informed and educated investor gets the best experience. I have learned, during all these years, that guidance and education is a continuous process. You need to keep handholding your clients,\" says Wani. Wani is amidst a business expansion mode right now and soon be opening offices in Chiplun and Nashik. He expects to reach an AUM of ` 2,000 crore in the next five years. \"My vision is to reach out to economically lower stratum of the society and encourage them to start a SIP of, say, ` 1,000-2,000. It's a phenomenal and emotionally enriching experience when you see your investors reach their financial goals. It is immensely satisfying, and that's the force which instils energy and keeps me passionate about my business,\" he says proudly. He expresses deep gratitude towards his uncle Mr. Dinesh Kothawade who brought him in this business & towards his mother who transformed him into an effective orator. Summing up his success mantra, he shares, - Change is the only constant and you have to follow the change to stay relevant and grounded.

\"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 15TARAKKI TIMES, MAY-JUNE 2022 Distributor Insights Start the new financial year with the right asset allocation Whether you invest in an individual asset class or instruments, follow an asset allocation appropriate for your unique requirements Outlook Money | May 2022 Mansi Kanade Common Investment Asset appropriate for your unique to be in a position where you can Classes requirements. take higher risks. At such a stage, Director, Portfolio Manager & if you are taking too little risk, Promoter Broadly speaking, there are three What is Asset Allocation? you might be missing out on the Fintegrity Wealth to four most common asset opportunity to earn a high return. classes. The first is fixed income/ Asset allocation is the act of With the beginning of the new debt, which means that you are spreading your investments However, if you are an individual financial year, chances are you likely to earn a fixed or assured across different asset classes close to retirement or already will be asked about your return on the investment you based on your risk appetite, retired, then you would like to investment plan for the year by make. financial goal, and investment take very little or no risk with your your employer or tax advisor. time frame. The idea is to have a investments. Here, if you are In other words, the risk of this balanced portfolio that has taking too much risk, there is the For some, this might appear too investment tends to be very low. neither too much risk nor too risk of your capital getting early to even think about tax This also means that the return little risk. It is important to eroded if something goes planning for the entire year you earn is typically lower when remember that different asset wrong. This shows that your ahead. For others, this is a compared to other products classes behave differently. asset allocation should change perfect opportunity to put some where the risk element is high. with time as and when your risk thought into their financial plans For example, in the initial days of appetite changes. by taking stock of their invest- The second broad category of the pandemic, while equity ments and the tax implication the asset class is equity. Equity markets faced a steep correc- Now is a good time to take stock those might have. stands for owning a stake in a tion, gold saw a sharp rally. In of your situation and focus on business. Typically, this happens effect, a portfolio that had your asset allocation. This This also becomes an oppor- when you invest in shares of a exposure to both of these practice would definitely pay tunity to analyze your invest- particular company or invest in asset classes suffered limited dividends in the long run, other ments from the asset-class lens. an equity mutual fund. This asset downside. than helping you with your tax It is a chance to sit back and class comes with the highest planning. evaluate if you are taking too level of risk exposure, and in the Deciding your Asset Allocation much risk on your investments or long term, also tends to give the too little risk. highest return. Your risk appetite plays a crucial role when it comes to deciding If you fall in either category, you Then there is real estate. Tradi- your asset allocation. If you are need to strike a balance and tionally this meant owning a plot young, have just started your first ensure that the risk in your of land, a constructed house or job, and have very few responsi- portfolio is in line with your apartment, or a commercial bilities at present, you are likely overall financial profile and goals. asset like a shop or office space. The very first step in that direc- These days, you can have Spread your investments tion is to understand different exposure to real estate through across different asset asset classes. financial instruments like Real classes based on your Estate Investment Trusts. risk appetite, financial goals, and investment Gold is probably the most time frame. common and the oldest asset class. You can now invest in the yellow metal in digital form via gold exchange-traded funds, mutual funds, or bonds, thereby eliminating the need to safe- keeping the physical gold. Whether you invest in an indi- vidual asset class or instruments like mutual funds, it is crucial that you follow an asset allocation

\"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.\" 16 TARAKKI TIMES, MAY-JUNE 2022 Channel Partners Distributor Insights Choose the right mutual fund Conservative hybrid funds not only help you beat inflation but also ensure higher returns thanks to the tinge of equity flavour Dalal Street Investment Journal | May 2022 Sunil Sawhney Investors with moderate risk depending on one’s individual advisable to opt for a systematic appetite may look at hybrid funds risk-taking capacity, investors withdrawal plan (SWP) over the Mutual Fund Distributor for their various financial goals of may choose equity-oriented dividend option from such different tenures. That said, hybrid schemes, debt-oriented schemes. This is because, as per Investments through mutual hybrid schemes are suitable for hybrid schemes or the dynamic the regulations, dividend can funds help one attain various any investors to meet their short asset allocation schemes also only be paid from the profit made financial goals. If planned well, to medium term goals. known as balanced advantage and not from the invested mutual fund schemes are not category of funds. If one’s risk capital. Therefore, if the NAV of only financial products but they Typically, a short-term tenure appetite is moderate, one may the fund is less than the NAV on are also solution providers, means 1-2 years while a medium opt for equity-oriented hybrid investment date, indicating bad irrespective of whatever cate- term may range from as low as funds while conservative fund performance, no dividend gory of an investor one may be. two years to seven years. investors can consider hybrid will be paid. Hence, if a mutual fund scheme Tenures over seven years plus funds with larger exposure to is well thought of and selected are generally classified as long debt assets. Hence, periodic payment is and invested with a disciplined term. solely dependent on fund perfor- approach with focus on financial However, if investors have mance. Another drawback is hat goals, the journey to attaining Hybrid mutual fund schemes, as moderate risk appetite but want the dividend received will attract one’s goals will be very smooth. the name suggests, are funds a dynamic asset allocation taxes as per the investor’s which offer investors an expo- strategy as a means to make the Income Tax slab. On the other However, the key here lies in sure to more than one asset most of equity and debt asset hand, SWP option proves to be selecting the right kind of mutual class. Having diversified asset classes, then consider balanced very tax-efficient. This is fund. In the process of choosing classes as underlying securities advantage fund. because, apart from benefitting the right mutual fund, factors ensures investment related risk from growth in investment, here such as risk-taking abilities, is not concentrated and they get Choose SWP over Dividend investors are subject to short or financial goals and tenures help the benefits of several asset Option long term capital gains depen- figure out which type of fund categories like equity and debt ding on the timeframe they opt. should an investor invest their with a balanced approach of Very often investors tend to rely One of the best strategies is to money in. investments. on dividends from their start SWP after a year from investments as a means to build investment date. This ensures Goals can be broadly classified Financial goals such as buying a a robust cash flow pipeline that the withdrawals are only into short-term, medium-term two-wheeler, a car, an interna- during, say, retirement years. For subject to long term capital gains and long-term. Given the tenure, tional holiday, home renovation such purposes hybrid categories in an aggressive hybrid scheme the types of schemes one should and down payment for buying a such as conservative hybrid or category. consider also differ. It essentially property, among others, are aggressive hybrid schemes can means that schemes which are normally treated as short-term to be considered. Here, it is suitable for the long term may mid-term goals. not be advisable if goals are to be If one’s risk appetite is met in the short to medium term. Since such goals have shorter moderate, one may opt Likewise, funds for meeting near tenure, conservation of capital is for equity-oriented to mid-term goals may not of prime importance and hybrid funds while be appropriate for long term inflation-beating returns on top conservative investors financial goals. of it helps create value and grow can consider hybrid funds the investments. Therefore, it is with larger exposure to advisable not to take undue debt assets. investment risks by choosing aggressive funds. Preferably, one should go for a balanced investment approach while limiting exposure to high risk asset classes from the short- term point of view. Else, one may run the risk of erosion in capital which thereby may not let the goals get fulfilled in the stipulated time. Here,

\"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 17TARAKKI TIMES, MAY-JUNE 2022 mint List of ICICI Prudential Funds in Mint 20BEST FUNDS Mint | May 2022 HYBRID 3-year return (%) 5-year return (%) Corpus (Rs cr) BALANCED ADVANTAGE ICICI Prudential Balanced Advantage Fund 10.97 9.96 39,761 DEBT Corpus (Rs cr) CDREBEDT-IOTRRIIESNKTED 1-year return (%) 3-year return (%) ICICI Prudential Credit Risk Fund 4.60 7.74 8,317 ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | May 2022 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Sensex Index Fund 3-month 3-year 5-year HYBRID: AGGRESSIVE (EQUITY ORIENTED) -1.16 - ICICI Prudential Equity & Debt Fund 0.44 -3.57 7.52 12.65 HYBRID: CONSERVATIVE (DEBT ORIENTED) 0.38 13.41 ICICI Prudential Regular Savings Fund -1.09 3.10 20.42 17.39 8.09 DEBT: MEDIUM- TO LONG-TERM -0.47 6.19 ICICI Prudential Bond Fund 0.21 0.49 6.29 8.62 6.67 DEBT: MEDIUM-TERM -0.47 6.66 ICICI Prudential Medium Term Bond Fund 0.32 -1.37 0.85 6.30 6.81 DEBT: SHORT-TERM 6.92 ICICI Prudential Short Term Fund 0.12 2.97 7.28 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 0.57 2.89 6.73 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund -0.33 2.28 7.11 0.61 3.23 6.82

\"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.\" 18 TARAKKI TIMES, MAY-JUNE 2022 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | May 2022 Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR ICICI Prudential Bluechip Fund -4.8 14.3 13.8 12.2 ICICI Prudential Large & Mid Cap Fund -2.2 22.2 16.9 11.8 ICICI Prudential Multicap Fund -6.5 15.0 12.5 10.2 ICICI Prudential Midcap Fund -8.1 14.9 16.8 10.8 ICICI Prudential Smallcap Fund -5.1 29.0 25.7 13.7 ICICI Prudential Focused Equity Fund -6.6 14.1 14.6 11.7 ICICI Prudential Value Discovery Fund 2.7 22.8 19.7 13.2 ICICI Prudential Long Term Equity Fund -7.3 13.9 13.3 11.3 (Tax Saving) -2.0 26.9 16.3 10.4 ICICI Prudential Dividend Yield Equity Fund ICICI Prudential FMCG Fund 2.3 21.1 11.5 11.7 ICICI Prudential Infrastructure Fund 7.2 33.0 18.4 11.4 ICICI Prudential Banking & Financial Services -5.2 5.8 5.6 5.8 ICICI Prudential Technology Fund -19.3 24.8 34.4 38.9 ICICI Prudential P.H.D Fund -10.6 -3.0 22.8 - ICICI Prudential Equity & Debt Fund 2.7 26.4 18.3 14.1 ICICI Prudential Equity Savings Fund 2.4 7.7 7.9 7.3 ICICI Prudential Ultra Short Term Fund 1.1 3.6 5.7 6.4 ICICI Prudential Savings Fund 0.8 3.7 6.3 6.7 ICICI Prudential Money Market Fund 1.1 3.5 5.4 6.2 ICICI Prudential Short Term Fund 0.1 2.8 7.1 6.8 ICICI Prudential Medium Term Bond Fund -0.5 2.9 7.5 6.8 ICICI Prudential Bond Fund -1.7 0.4 6.8 6.3 ICICI Prudential Long Term Bond Fund -3.7 -2.8 5.7 5.9 ICICI Prudential All Seasons Bond Fund -0.8 2.0 7.5 7.1 ICICI Prudential Corporate Bond Fund 0.2 3.1 7.1 7.0 ICICI Prudential Floating Interest Fund 0.4 3.6 6.4 6.5 ICICI Prudential Credit Risk Fund 0.9 5.1 7.9 7.5 ICICI Prudential Banking & PSU Debt Fund 0.3 3.5 7.0 6.7 ICICI Prudential Gilt Fund -0.8 2.5 7.9 7.3 ICICI Prudential Regular Savings Fund -0.6 6.9 8.9 8.3 ICICI Prudential Balanced Advantage Fund -0.2 9.5 11.3 9.9 ICICI Prudential Child Care Fund (Gift Plan) -6.5 10.3 9.5 8.4 Source: NAV India; NAV for the growth option as on 06-05-2022. 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.