Tarakki Times English July-August 2019

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 MUTUAL FUND MEDIA VIEWS MUMBAI | JULY - AUGUST 2019 | PAGES 15 Professional Views The NBFC crisis is an isolated Pg. 2 company event and doesn’t Big bull markets are pose systemic risks built on low land, capital costs Mint | June 17, 2019 S Naren, ED & CIO Nimesh Shah index Nifty, which generated clearly pointing towards the ICICI Prudential Mutual Fund MD & CEO 9.74% over the last one year. We growing divergence between ICICI Prudential Mutual Fund have always believed that credit the credit standing as sugg- Tarakki Insights rating is one of the inputs in ested by the ratings provided Pg. 3 The liquidity crisis faced by non- investment decision, but not the by the rating agencies and the Shweta Jain, Founder & CEO banking financial companies sole determinant. market perception. Thanks to (NBFCs) is an isolated event and the rating downgrade, some Investography Pvt. Ltd. does not pose any systemic Two key tenets of our credit of these anomalies have got threat, Nimesh Shah, chief decision-making have been the addressed. Tarakki Corner executive officer of ICICI focus on client selection and Pg. 4 Prudential Mutual Fund said. avoiding concentration. This • Lack of transparency and/or Labhesh Vadhvani India’s ₹25.93 trillion mutual fund discipline has helped us not to adequate disclosure for industry which has lent to NBFCs overly rely on credit rating and groups with complex group Manigram Financial Services has received particular attention has helped us avoid potential structures created challenges in the crisis, with questions problems, considering that, till in assessment of credit profile Pg. 5 being raised on the safety of recently, many of the credits of the issuers. ₹13.24 trillion of assets under currently under stress, carried Amit Rathi management (AUM) of debt the highest safety rating. Do you think these credit Amit Rathi Consultancy funds. According to Shah, the events have settled down biggest outcome of the crisis is What is your view on the recent now? How have mutual funds Pg. 6 the focus on risk management credit events, downgrades, adapted to these? And what and diversification. Edited defaults and delays in sort of an impact the so-called Daxesh Kothari excerpts from an interview: repayments by NBFCs? NBFC crisis has had on debt Ashutosh Financial Services funds? Pvt. Ltd. The debt mutual fund story has If we look at some of the recent taken a hit in the past one year credit events, they had the We have seen that systemically, Pg. 7 after the IL&FS crisis, where following broad characteristics: some of the credit issues have funds have been questioned on been addressed or (are) under Shobhit Gupta credit risk and valuation. How • Borrowers had relied upon the process of being addressed. Moneygain Consultants Private do you view the current loss of short-term market borrowings We believe the panic phase has Limited credibility? to finance long-term use of run its course. Most of the AAwards funds which resulted in headlines have been negative We are of the view that NBFC liquidity mismatch, thereby around debt mutual funds and so APg. 8 crisis is an isolated, individual exposing them to increased the sentiment around investing company event and does not refinancing risk. Increasingly, into debt mutual funds has Lipper awards pose any systemic risk. It is the borrowers are taking turned negative. important to note that the measures to address these Fund Review concerns pertaining to each of issues through diversification The biggest outcome of these Pg. 9 the debt papers under question of their liability mix and developments has been the is confined/limited to specific reducing excessive reliance focus on risk management and ICICI Prudential Balanced schemes within select fund on shorter term sources of portfolio diversification in debt Advantage Fund houses and are not at an funding. funds. These events have also Conservative exposure to equity industry-wide level, as it is being highlighted that just as volatility largely perceived. This can also • Credit spreads on the bonds is an integral part of equity Pg. 10 be gauged from the fact that issued by some of the issuers investments, rating upgrades financial index as on 13 June has were significantly higher than and downgrades are part and ICICI Prudential Equity & Debt Fund delivered 16.26% and has similar rated papers. This was parcel of credit investments. Juggling deftly between debt and outperformed the benchmark equity Contd. on page 2 Pg. 11 ICICI Prudential Equity & Debt Fund Seeking value Pg. 12 ICICI Prudential Bluechip Fund Good in bull runs, even better in bear ones Pg. 13 List of ICICI Prudential Funds in Mint SIP Top UP Pg. 14 ETW Funds 100 Systematic Investment Plans Pg. 15 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, JULY-AUGUST 2019 Interview Big bull markets are built on low land, capital costs The BusinessLine | June 21, 2019 S Naren ption, which was strong over the 1991, liberalisation sharply Many of the PSU stocks are at 10- ED & CIO past five years. brought down the capital costs. 11x trailing PEs with a 5 per cent ICICI Prudential Mutual Fund Between 1998 and 2003, both dividend yield, which is a good Does the election mandate land prices and interest rates fell bottom in India. But whether Sankaran Naren, Executive matter, when the economy sharply. However, land prices these names turn out to be good Director and CIO of ICICI seems to be slowing down and interest rates shot up sharply value-picks or not depends on Prudential Mutual Fund, spoke to sharply? between 2003 and 2013. Since the decisions taken by the BusinessLine on what has then, interest rates have corre- government. We can only hope changed for markets post- The answer to this lies in the cted, but land prices continue to that the government recognises elections, and the pockets of reasoning for the slowdown. Pre- remain high. the underlying value of these opportunity. Excerpts: IL&FS, several corporates that businesses. were not credit-worthy got We believe that for a healthy and What’s your view on the stock access to funds easily, which is strong economic growth, the How do you think the NBFC market, with valuations being not the case currently. This cost of land and capital has to be crisis will play out for the so high? causes a slowdown, which is not low; labour costs in India are markets? necessarily unhealthy. The other already reasonable. This could To d a y, m o s t f a c t o r s a r e factor was that companies were be one of the triggers for the next The NBFC crisis is a well-known supportive; however, valuations using collateral to borrow at a big bull market, akin to the rally and widely discussed problem. remain a concern with India’s time when their financials were between 1991 and 2003. We are of the view that the equity markets. For those steadily deteriorating. In such trouble is probably smaller for investing with a three- to five- circumstances, the prudent In the past few months, we the markets than the general year view, now is a good time to approach would be to dele- have seen a bounce-back in consensus because the aggre- start SIPs. Prior to the elections, verage, rather than to further add cyclical stocks. What is this gate size of the problem is we were cautious on equities, to borrowings. Therefore, non- driven by? insignificant when compared to but not any more, given the availability of funds to such GDP. fantastic mandate the govern- borrowers is also not a negative. One of the primary reasons was ment has garnered. In our entire consumption stocks being too In the past, inflexion points for investing careers, we have We are of the view that for the expensive along with worries Indian market corrections have always factored in unstable economy to do well, in the long around a consumption slow- always come from global coalitions but never ten years of run, lower land prices are a down. This led to reallocation of factors. Do you see global risks a single-party rule with a strong triggering a correction this time majority. Prior to the elctions, we were cautious on around? equities, but not any more, given the We are not worried about fantastic mandate the govermnet has If the global risks were to aggregate earnings as we are in garnered. escalate today, we believe India the early stages of recovery will emerge as a relative safe taking shape this year. We necessity. Despite the real estate capital from expensive haven. In a trade-war scenario, believe this year the markets will sector being over-leveraged, consumption stocks to beaten- while other Asian markets be supported by corporate land prices are yet to correct. If down cyclicals, mainly domestic reacted negatively, India has earnings from domestic cyclicals the government’s policy-making cyclicals. In fact, except global been relatively insulted. and financials (larger weightages in the next one year results in cyclicals, most other cyclicals in indices), rather than consum- lower land prices, we believe it have gone up. In fact, India stands to gain from could lead to a material pick-up in the trade-war situation. But the the economy. I see many PSU stocks figuring same cannot be said in case across ICICI Prudential equity there is an oil war or if oil prices Historically, in India, land and portfolios. They are a much- shoot up. A stable oil price is capital prices move in tandem. In hated set of stocks to own... critical for India. The NBFC crisis is an isolated company event and doesn’t Contd. from page 1 pose systemic risks There is a need to differentiate to relatively high safety grade. ₹100 crore stipulated on scheme level liquidity does not between various ratings investment from single investor. come under stress. There has downgrades. A downgrade in While the asset (investment) side been a flight to better managed credit rating from “AAA\" to “AA\" of the mutual funds has been Focus needs to be on ensuring funds. As can be seen from the has entirely different conno- under scrutiny thanks to recent adequate diversification. This monthly data, investors have tation than that from “BBB\" to events, what is important is to ensures that even under the moved on to funds with better “BB\". We need to appreciate that maintain granularity in liability event wherein liquidity of a risk management practices. despite the downgrade, a AA side e.g. in ICICI Prudential Credit particular instrument gets rated credit continues to belong Risk Fund, we have a limit of adversely impacted, the overall

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 Insights 3TARAKKI TIMES, JULY-AUGUST 2019 Nobody likes being sold something to. A seller is a thing of the past. But, we need to run our business and bring in business. So how do we do that without selling? Shweta Jain Founder & CEO Investography Pvt. Ltd.

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, JULY-AUGUST 2019 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY JULY-AUGUST 2019 Labhesh Vadhvani Manigram Financial Services Wealth Expert of the East Labhesh Vadhvani started out as an MBA graduate. A well-paid job in the banking sector, a young career ahead of him - however, this was not the plan. After his years of working for other institutions, the time had come for Labhesh to take the plunge. This milestone was always in the making because Labhesh never felt content with the limited services he could provide while working under a bigger label. He always felt restricted by the limited number of options he could offer to his clients. He had always aimed to offer countless and the very best products to his clients, and for that, he had to take a step in an independent direction. Thus in the year 2018, he started out with his own wealth management firm Manigram Financial Services. He recalls that in the initial days of his business, there were some challenges. It was difficult to convert clients who had been dealing with institutions for years now. Moreover, a new guy in the market would always have a tough time gaining trust. However, Labhesh was determined and thus began his grit to not give up. He would pitch to two new clients daily with no desperation of converting them. His meetings were solely aimed at educating the clients on every tiny and behemoth detail about the financial jargons. Undoubtedly, his pitches did make a mark. After all, it isn't every day you find someone who is only aiming to add value and nothing else. However, the results weren't visible soon after. It took those clients months, but they realized what Labhesh was offering was indeed rare. Even today, he continues to meet two new and two old clients daily, with the same old intention of helping people get financially smarter and more independent. And as it seems, it has all reaped sweet benefits for Labhesh, as today his brand label manages a whooping net worth of 50 Crores of assets. His services include providing Distribution of Bond, Mutual Fund, Forex Advisory, Direct Equity, Offshore products, Insurance Planning, Retirement Planning, and of course, financial knowledge enrichment for his clients. His success is a story of consistency and hard work. Labhesh also believes that in the financial aspects, patience is a key player. Whether you are aiming to become an independent financial advisor yourself or it is just a mutual fund investment that you want to start with, patience keeps your wealth management healthy. He places high importance on conducting good research before narrowing down your options. However, once you have made a choice, you must stick to it. Even in the most volatile times of the market, Labhesh recommends his readers to not lose their calm. ARN - 144116 Location - Ahmedabad

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 5TARAKKI TIMES, JULY-AUGUST 2019 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY JULY-AUGUST 2019 Amit Rathi Amit Rathi Consultancy A Financial Solutions Expert! An established certified financial planner based out of Kolkata, Amit Rathi has more than 12 years of marketing experience. His journey into investing began with entry into the stockbroking business in 2006. Following the Lehman crisis which affected the financial markets, he decided to pursue a different line. On the recommendation of a friend, he started the mutual fund advisory in the year 2013. With the help of ICICI Prudential Mutual Fund Business team, he was able to understand the various nuances of the industry. Ever committed to his clients, Amit continued to support his stock market investors to help them average out their losses during those trying times. Gradually he was able to build a strong client base by rendering good advice. They gradually sought him out for other areas like health insurance, life insurance, pension management etc. Astute and responsive, Amit was immediately able to seize the opportunity and established tie-ups with various companies. Eager to learn about his field, he completed his Certified Financial Planning certification and, gained more expertise and started offering wealth management services. Through referrals from existing clients, he was able to grow his business. To exclusively focus on these services, he started a wealth planning consultancy firm in 2017. The main office is in Kolkata and with plans to expand further, the firm has recently opened its second office in Siliguri. From simple beginnings, Amit Rathi has come a long way. The biggest learning from his early days in the business is that it is important to only think of the client's goals. Many a time, clients are not aware of what they want and here the finesse of the financial advisor comes handy. During turbulent times, an advisor is expected to calm their fears and help them focus on the goals. He and his team go the extra mile to explain the importance of staying committed in an investment. The key to becoming a successful wealth planner, he says is to always guide clients by delivering the best financial solution tailored to suit their needs and objectives. \"Sell Solutions, not Products\" is the mantra. Investors no longer have to deal with the hassles of investing by going to Amit Rathi, who brings in professional expertise to the whole process. He recommends SIPs as a way of investing for long-term wealth creation. He believes that financial planning is a journey and focus is required to achieve the financial goals at every stage of life. ARN - 86389 Location - Kolkata

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, JULY-AUGUST 2019 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY JULY-AUGUST 2019 Daxesh Kothari Ashutosh Financial Services Pvt. Ltd. Wealth Expert of the East After a much coveted career in a Tax & Allied Laws Advisory, Daxesh Kothari finally decided to take a leap. Over the years, he has invested himself into serving his clients at his best capacity, and that paid off as he started his own venture Ashutosh Financial Services Pvt. Ltd. Although he had the skill set and the contacts to serve his clients to the fullest, the initial days of anything new are quite a challenge. His clients trusted him with his Tax practices, however, to establish and use that credibility for the skills required in wealth management, he had to go an extra mile. “So we had to prove ourselves as truly financial advisory professionals and not just Tax Professionals who are trying to encash on the relationship built out of Tax Advisory.”, he recalls. And this was made possible by perseverance and well-placed team, which eased him into the transition from an employee to a capable CEO. As his company grew, the journey got easier. “The first set of clients came because of the relationships from the Tax Advisory practice. The second set of clients came when we demonstrated ourselves as a capable team in financial services. The third set of clients came as references from the existing client group. The forth set of clients came when we started offering all the broad based financial services offered from one roof. The fifth and the latest client acquisition is picking up from our vibrant NRI Services division.”, Daxesh further elaborates. As at 31st July 2019, Ashutosh Financial Services Pvt. Ltd. is managing over 250 crores of assets, with the major pool of 180 crores being placed in Equity Funds and the rest being in Hybrid/Debt funds. The pool of services being offered under Ashutosh's label are namely - Investment Advisory, Capital Advisory, Insurance Advisory, Income Tax and Succession Planning, and NRI Services. The team comprises Chartered Accountants, Lawyers, CFP, Management graduates, and other highly qualified bright advisors, who are then compartmentalized into one of the three departments: Research & Analysis Department, Relationship Department, and Operations Department. After his long stint as a financial advisor, he firmly believes that sky is the limit in this sector for those who have the right ethics and the right execution. “Financial Advisory is a proxy of 'India Growth Story', hence it has an assured potential for at least another 25 years.” he believes the climb to success is built with steps towards customer satisfaction. He has made his business model in a way that it is convenient and credible for the client, as he further adds “Selling right products to the right clients in accordance with their risk profile and explaining them the risk beforehand so that they can withstand volatile times - that is my main job.” He believes there are no quick recipes to cooking success. Leveraging teamwork and trust, you must continue to grow. Adding to that, investing offers all rounded solutions that truly benefit all and you have the mantra to success. “This being said, you should always keep on investing in making your presentation skills sharper, your team could get more updated, your business could get more efficient. You must regularly invest in your business - both time and money.”, he concludes. ARN - 0189 Location - Rajkot

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 7TARAKKI TIMES, JULY-AUGUST 2019 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY JULY-AUGUST 2019 Shobhit Gupta Moneygain Consultants Private Limited Wealth Expert of the East Let's start from the beginning: How was the idea behind trading. However, we always keep reminding ourselves, that this is just Moneygain conceived? the beginning, and we have higher skies to be reached. In pursuit of The idea of being an entrepreneur had always been in the back of my the same, our offerings are in for ambitious additions since we have mind, as I had been keen to be able to touch others' lives with my also started to offer products such as Mortgages, Business loans, actions. This finally took the shape of reality around three years back, Insurance, Primary and Secondary Real Estate Advisory, Primary and when I got in touch with Sachin Jain, our co-founder and the partner Secondary Debt Offerings, IPO Listing and International Debt, to name who always strived for excellence. Together we started the journey of a few. Moneygain Consultants Private Limited, a wealth management firm, where we both shared the love for serving our clients with the best Apart from the products being offered, what are the values that financial assets. However, as it is said, 'team work makes the dream Moneygain associates itself with? work,' we continued to build our team to bring in more expertise and Being ex-bankers ourselves, we were inclined to take other bankers on opinions on the table. Steadily over time, Moneygain has emerged as a board, as we wanted like-minded individuals to create synergies platform innovated by two bankers for other like-minded people to hop between themselves and work towards creating prosperity for their on, with a clear and sincere intent to build a better financial future for clients. As an IFA, we continue to bring new offerings on the table for the general public. our clients and stay relevant in the ever-changing and dynamic investing ecosystem. The experience of our team, coupled with well- What sets Moneygain apart from everyone? researched investment advisory services, has often come in handy for There is a healthy mix of enthusiasm as well as experience in our team. our clients at volatile market times. Beyond the products, Moneygain At Moneygain, you get to be a part of a dynamic and growing team of has earned the trust of its clients based on utmost transparency in its motivated professionals, without sacrificing the independence of your advisory operations, a reliable service, and the “customer first” decision-making ability. The cumulative experience of our team adds approach. up to 120 years in the financial services industry. This much experience banks in credibility from our clients, and the services we offer live up to What is it that helped Moneygain grow at this exponential rate? their expectations. We also give enough freedom in ideas and Henry Ford once said, \"if everyone is moving forward together, then execution to our partners and associates, so that we could leverage success takes care of itself.” We invest time and money in our people the power of bright minds into ideation. This has helped us create and believe in staying committed towards the common cause of some innovative offerings and products for our clients. financial prosperity. We know the dire consequences our clients may have to incur if it were for an unreliable person handling their portfolio. How is the journey looking for the label so far? This is exactly why our closed network comprises only the choicest Moneygain has ambitiously spread itself across five regions, namely: advisors, who are in for years of fulfilling association. On top of that, Delhi, Chandigarh, Punjab, Haryana and Himachal Pradesh in just a we offer only the hand-picked products, which we truly believe will short span of little more than two years. We take pride in being one of serve our clients well. Our commitment to serve whoever has trusted the biggest and fastest growing Wealth Management Firms in North us is the simple mantra behind our success. India. As a group, Moneygain manages 1000+ crores of AUM; out of which about 800 crores are invested in mutual funds, around 80 crore ARN - 113968 is in PMS and AIF; and about 150 crore comes through direct equity Location - New Delhi

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, JULY-AUGUST 2019 Awards Lipper Awards

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 9TARAKKI TIMES, JULY-AUGUST 2019 ICICI Prudential Balanced Advantage Fund Conservative exposure to equity The Hindu Business Line | June 22, 2019 The fund has outperformed its category over one-, three- five- and seven-year time-frames Funds under the balanced advantage they are treated as equity funds for tax risk of its portfolio. It juggles its equity category (also called dynamic asset purposes. portion dynamically by using an in-house allocation funds) aim to generate model that is based on a long-term historical returns by managing their equity exposure Most of these funds follow a hedging mean price-to-book value (P/BV). dynamically, depending on the market strategy by taking equity derivative positions conditions. when the equity market valuation appears The scheme has maintained a long (buy) high. This helps limit the downside while position in equity stocks for 65-69 per cent These funds increase their allocation to maintaining the equity allocation at above 65 of the portfolio over the past five years. equities when the equity markets look per cent. The allocation to equity (unhedged) When the equity market has moved up, the under-priced, and vice-versa. is 30-80 per cent in most of the funds. fund manager has gone short (derivative However, their participation in equity rallies position) on most of the equity exposures to In-house models is limited. Investors who wish to participate make the portfolio defensive. in equity markets with a relatively Currently, there are 19 funds under the conservative approach can invest in this For instance, in January 2015 and January category. Each fund follows an in-house category of funds. 2018, the fund increased its hedged position valuation model to determine their equity to 34-36 per cent and brought down its net allocation. These valuation metrics use Performance, as measured by three-year equity exposure to around 30 per cent. That various quantitative criteria such as price-to- rolling returns, shows that the top- acted as a buffer to the fund in the earnings (P/E), price-to-book (P/B) or performing funds under this category — overheated market. Currently (as of May 31), dividend yields. such as L&T Dynamic Equity, ICICI Prudential the net equity exposure of the fund stands at Balanced Advantage, HDFC Balanced 42 per cent. The equity portion of the portfolio is always Advantage and Invesco India Dynamic maintained at above 65 per cent; hence, Equity — have delivered 13-14 per cent Investment approach CAGR returns over the past seven-year Currently, the fund period. The Nifty 50 TRI index posted 11 per On the equity side, the fund follows a multi- follows the accrual cent in the same period. cap approach, though tilting towards large- strategy with a cap stocks. On its fixed income portfolio, the portfolio average In the risk-return pyramid, the balanced scheme uses both the accrual and duration maturity of 2.5 years, advantage category is placed between strategies, based on the market conditions. and has higher equity savings and aggressive hybrid funds. Currently, the fund follows the accrual exposure to good One cannot compare balanced advantage strategy with a portfolio average maturity of credit quality funds with aggressive hybrid funds as the 2.5 years, and has higher exposure to good instruments. latter allocates 65-90 per cent to equity credit quality instruments. (unhedged). ICICI Pru Balanced Advantage has outperformed its category over one-, three- five- and seven-year time-frames. The fund invests predominantly in equities and uses derivatives to hedge the downside Fund facts Annual returns (%) Fundas Assets as of May 31, 2019: `29,105 crore ICICI Prudential Balanced Advantage Fund Manages equity exposure Category average dynamically 42% Net equity 9.8 7.8 10.0 Equity portfolio: 33% Debt and cash 8.1 multi-cap approach with large-cap tilt 6.5 3.3 Fixed-income portfolio: Accrual as well as duration 25% Hedged equity 1 year 3 years 5 years strategy

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, JULY-AUGUST 2019 Fund Review ICICI Prudential Equity & Debt Fund Juggling deftly between debt and equity The Hindu Business Line | July 14, 2019 Sound calls across market cycles have helped the fund deliver handsome returns The many tax tweaks and other has been a steady long-term performer in fund increased its exposure to large-caps to measures announced in the Budget this category. Over three- and five-year around 85-87 per cent (of total equity). have elicited mixed reaction in the horizons, the fund delivered around 11 and market. While tax on buybacks by listed 12 per cent returns, respectively; over a Over the past one year, the fund has companies and measures to increase public much longer 7- and 10-year time period, it increased exposure to SBI, Infosys, and float augur well for investors over the long raked in a tidy 15 per cent return. ICICI Bank which paid off well, as these run, short-term jitters on higher surcharge stocks rallied handsomely. Exiting stocks on the super-rich and more tax burden on Portfolio moves such as Tata Motors, Thomas Cook and FPIs, are likely to keep markets volatile. Hindustan Zinc, appear to have helped cut Sound calls across market cycles have losses, as these stocks plummeted over the Hybrid funds that invest a portion of assets helped the fund deliver handsomely. In the past year. in equity and debt are ideal in such fickle 2014 rally, for instance, the fund upped its markets. For investors with a horizon of over equity exposure to 68-70 per cent. In the so- As of May, the fund’s top sectoral holdings five years, taking notable exposure to equity so market of 2018, the fund kept its equity include private sector banks, power (chunk can help build wealth over the long run. exposure to 65-67 per cent through most of in NTPC), and software. Investments in Aggressive hybrid funds - categorised by the year. Its active churn of portfolio stock such as ICICI Bank, SBI and L&T, SEBI as having 65-80 per cent investment in between mid- and large-caps also boosted should pay off over the next year, if growth in equity - are a good option. The higher returns. the economy picks up. The fund’s allocation to equity helps deliver superior investments in sturdy companies such as returns while also offering the tax benefit In the 2014 rally, the fund had split its equity Titan, ITC, Infosys, ONGC etc, should help it available to equity funds. The 20-35 per cent assets equally between large-caps and mid- weather interim gyrations in the stock debt exposure helps cap losses in iffy and small-cap stocks, which helped it cash market better. The fund holds about 85 per markets. in on the rally. With markets losing steam in cent of its equity in large-caps, which offers 2015, the fund started increasing its comfort. ICICI Prudential Equity & Debt Fund - exposure to large-caps. Since the start of erstwhile ICICI Prudential Balanced Fund - 2018, as mid-caps started to overheat, the On the debt side too, the fund has juggled deftly between longterm government For investors with a horizon of over securities and other debentures, depending five years, taking notable exposure to on the interest rate movement in the equity can help build wealth over the economy. In the lacklustre 2017 and 2018 long run. markets, the fund reduced exposure to G- Secs; in most of 2018, the fund’s investments in G-Secs have been 6-7 per cent and under. The average maturity of the debt portfolio has been one to two years since the beginning of 2018. Fund facts Annual returns (%) Fundas Assets as of June 30, 2019: `25,616 crore ICICI Prudential Equity & Debt Fund Top quartile performer Category across periods 70.9% Equity Deft asset allocation 25.0% Debt 12.1 calls 2.8% Cash 10.7 10.1 1.3% Others 8.0 8.2 Active debt churn based on rate movements 2.1 1 year 3 years 5 years

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, JULY-AUGUST 2019 ICICI Prudential Equity & Debt Fund Seeking value Mutual Fund Insight | August 2019 Earlier known as ICICI Prudential based on whether credit or duration Balanced Fund, this fund has appears attractive. The latest portfolio Launch been consistently rated four-star. shows that the equity portion has a November 1999 high 85 per cent allocation to large-cap The scheme’s equity exposure swings stocks, higher than that of the category. Fund manager in a broad range between 65 and 80 per The debt portion is mainly in AAA, A1+ Sankaran Naren, cent, while its debt exposure is and sovereign instruments. Manish Banthia, maintained between 20 and 35 per Atul Patel cent. The fund makes tactical On a three- and five-year basis, this allocations within this range based on fund has outpaced its benchmark by 1- The issuer level the relative valuations in equity and 2 percentage points and its category by concentration is debt markets. 2-3 percentage points. It has managed normally maintained a 14.3 per cent CAGR since inception. below 3 per cent. In Its stock-selection approach is value- The track record suggests that the fund certain situation, the oriented. For stock picking, it looks for substantially beat its benchmark in the limit may be extended stocks with long-term growth big bull years of 2012, 2014 and 2017 prospects, currently trading at modest but fell slightly more than it in bear to 5 per cent. relative valuations. The fund is sector- years like 2015 and 2018. The value agnostic. orientation and tactical calls, however, MANISH BANTHIA position the fund well during corrective On debt, the investment is managed phases. Expense ratio (%) DIRECT 1.04 1.05 MAX MIN MEDIAN FUND 0.32 1.88 SIP value (`) `7.75 lakh 2.26 REGULAR 8.0 lakh MEDIAN MAX 1.77 8.4 lakh MIN FUND 1.33 2.73 4.8 lakh Trailing returns (%) 3.2 lakh Fund VR Balanced Index 1.6 lakh 1-Year 10.25 0 Amount invested 11.19 July 2014 June 2019 `10,000 invested monthly for five years (`6 lakh) 3-Year 12.13 Fund history 12.74 Year 2013 2014 2015 2016 2017 2018 YTD 11.98 10.08 Rating 5-Year Quartile ranking* 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 16.45 Fund return (%) 11.18 45.56 2.10 13.66 24.78 -1.90 7.01 16.97 Recent Category return (%) 6.37 40.92 3.10 6.41 26.93 -2.82 4.73 rally VR Balanced (%) 7.58 28.68 -1.29 5.42 25.27 4.96 8.48 Recent -12.63 Credit quality AAA AAA AAA AAA AAA AAA AAA crash -16.71 Investment style Growth Blend Value Fund style Recent rally: Feb 11, 2016 - May 31, 2019 Capitalisation *Quartile ranking means the quartile in which the fund appears when all the funds in the Recent crash: Mar 04, 2015 - Feb 11, 2016 category are arranged in a descending order of returns. Year-to-date data as on June 30, Data as on June 30, ‘19. Large Medium Small 2019. Credit quality and style box Year-to-date data as on May 31, 2019. Portfolio-related data as on May 31, ‘19.

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, JULY-AUGUST 2019 Fund Review ICICI Prudential Bluechip Fund Good in bull runs, even better in bear ones Mutual Fund Insight | September 2019 Launch After beating both the The scheme seeks to invest in May 2008 category and benchmark in large-cap companies with a proven eight of the nine years since track record, quality management Fund manager launch, this fund has just about and good growth potential. While Anish Tawakley, matched its benchmark in the last looking for quality businesses, the Rajat Chandak one year. But its performance is still fund tends to be valuation- superior to a majority of its peers. conscious and doesn’t overpay. The recent performance It’s four-star rating has therefore was largely aided by the been upgraded to five stars in the On a three- and five-year basis, the underweight stance in past year. fund is now neck and neck with the finance, banks, benchmark, but it has outper- consumer non-durables, The fund has traditionally had a formed the category by about 1 software and petroleum higher-than-category allocation to percentage point. The year-wise products. large caps. Its mandate earlier track record shows that the fund called for a concentrated portfolio, has been good at bull-market ANISH TAWAKLEY with the stock picks drawn from the participation in 2009 and 2014 but top 200 stocks by market cap. Post even better at containing losses in Expense ratio (%) MAX the SEBI reclassification, the fund bear years such as 2011 or 2015. remains a large-cap fund, which will But the only limitation is that it DIRECT maintain a minimum 80 per cent hasn’t seen a serious bear market. exposure to the the top 100 stocks A solid performer for conservative 0.71 1.21 by market cap. investors. MIN MEDIAN FUND 0.01 2.47 15 lakh SIP value (`) `7.30 lakh 1.83 12 lakh REGULAR FUND MAX 9 lakh 0.90 6 lakh MIN MEDIAN 0.01 2.67 Trailing returns (%) Fund S&P BSE Sensex TRI 1-Year -2.11 3 lakh 3-Year 0.93 5-Year 0 `10,000 invested monthly for five years (`6 lakh) Amount invested Recent 8.76 Sep 2014 2014 2015 2016 2017 Jul 2019 11.49 rally Fund history 2018 2019 (YTD) Recent 9.78 9.09 Year 2013 crash Rating 16.70 19.61 Quartile ranking* 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 -18.63 Fund return (%) 10.21 41.10 -0.21 7.74 32.75 -0.80 0.69 -20.85 Category return (%) 6.95 36.18 -1.06 3.71 30.92 1.10 1.35 4.81 S&P BSE Sensex 10.70 31.87 -3.68 3.47 29.56 7.18 TRI (%) Fund style Investment style Growth Blend Value Recent rally: Feb 11, 2016 - May 31, 2019 Capitalisation *Quartile ranking means the quartile in which the fund appears when all the funds in the Recent crash: Mar 04, 2015 - Feb 11, 2016 category are arranged in a descending order of returns. YTD as on July 31, ‘19. Data as on July 31, ‘19. Large Medium Small Portfolio-related data as on June 30, ‘19. The ratings of direct and regular plans have been calculated separately in relation to their respective regular and direct peers. Hence, they can be different.

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, JULY-AUGUST 2019 mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | August 2019 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 8.56 8.94 12.91 21,125 AGGRESSIVE HYBRID ICICI Prudential Equity & Debt Fund 7.22 9.58 13.60 24,312 CONSERVATIVE HYBRID 7.94 9.68 9.52 1,642 ICICI Prudential Regular Savings Fund INTERNATIONAL 5.34 7.37 NA 84 ICICI Prudential Global Stable Equity Fund 12.57 10.38 NA 299 ICICI Prudential US Bluechip Equity Fund 1-year return (%) 3-year return (%) 5-year return (%) Corpus (Rs cr) FUND CORE DEBT-ORIENTED 9.70 7.59 8.36 7,771 SHORT DURATION ICICI Prudential Corporate Bond Fund SIP Top Up A monthly Systematic Investment Plan (SIP) of Rs.10,000 with an annual Top Up of 10% in these schemes has generated returns as stated below. Scheme Name 5 Years 10 Years ICICI Prudential Total Amount Invested (`) 7,32,612 19,12,491 Midcap Fund Return (%) 8,03,501 33,57,418 Return (%) ICICI Prudential 3.94 12.58 Bluechip Fund 8,79,157 32,07,545 7.81 11.60 ICICI Prudential Equity Return (%) 8,87,237 33,82,089 & Debt Fund Return (%) 8.20 12.74 ICICI Prudential 8,26,102 29,53,970 Large & Mid Cap Fund 5.13 9.81 ICICI Prudential Return (%) 8,83,947 32,07,091 Multi Asset Fund Return (%) 9.47 11.59 ICICI Prudential 8,71,024 32,55,927 Multicap Fund 7.41 11.92 ICICI Prudential Balanced Return (%) 8,75,210 31,30,149 Advantage Fund Return (%) 7.61 11.07 Return (%) ICICI Prudential Return (%) 8,25,886 28,53,653 Focused Equity Fund 5.12 9.05 ICICI Prudential 8,07,180 33,59,893 Value Discovery Fund 4.14 12.60 ICICI Prudential Long Term 8,60,702 32,69,211 Equity Fund (Tax Saving) 6.89 12.01 Data in XIRR (%) terms and as of July 31, 2019 Past performance may or may not sustain in the future.

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. 14 TARAKKI TIMES, JULY-AUGUST 2019 Fund Review ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | August 2019 FUND Value Research Returns (%) Fund Rating EQUITY: LARGE CAP ICICI Prudential Bluechip Fund 3-month 6-month 1-year 3-year 5-year EQUITY: MULTI-CAP 8.77 ICICI Prudential Multicap Fund -5.53 1.86 -6.31 7.82 9.17 HYBRID: EQUITY SAVINGS ICICI Prudential Equity Savings Fund -7.62 0.28 -10.04 5.59 - HYBRID: AGGRESIVE 9.45 ICICI Prudential Equity & Debt Fund 0.29 4.52 5.8 6.59 9.6 HYBRID: CONSERVATIVE -4.94 2.31 -2.9 6.97 9.93 ICICI Prudential Regular Savings Fund DEBT: DYNAMIC BOND 0.6 3.99 5.93 7.86 ICICI Prudential All Seasons Bond Fund 3.62 6.3 9.91 7.85 Systematic Investment Plans A monthly Systematic Investment Plan (SIP) of Rs. 10,000 in these schemes has generated returns as stated below Scheme Name 3 Years 5 Years 7 Years 10 Years 3,60,000 6,00,000 8,40,000 12,00,000 ICICI Prudential Midcap Fund Total Amount Invested (`) 3,53,335 6,71,672 13,12,924 23,72,792 Return (%) (An open ended equity scheme predominantly -1.21 4.46 12.55 13.08 investing in midcap stocks) 3,90,547 7,34,758 12,50,650 22,28,384 ICICI Prudential Bluechip Fund Return (%) 5.37 8.04 11.18 11.90 3,90,514 7,41,998 12,89,825 23,74,654 (An open ended equity scheme predominantly investing in large cap stocks) 5.37 8.44 12.05 13.09 3,68,003 6,88,654 11,60,024 20,39,084 ICICI Prudential Equity & Debt Fund Return (%) Return (%) 1.44 5.46 9.08 10.23 (An open ended hybrid scheme investing predominantly Return (%) 3,91,470 7,38,226 12,57,289 22,22,899 in equity and equity related instruments) Return (%) 5.53 8.23 11.33 11.86 ICICI Prudential Large & 3,83,560 7,28,648 12,84,134 22,63,311 Mid Cap Fund 4.17 7.71 11.92 12.19 (An open ended equity scheme investing in both 3,94,658 7,29,407 12,09,078 21,67,679 large cap and mid cap stocks) 6.07 7.75 10.24 11.38 ICICI Prudential Multi Asset Fund 3,74,590 6,86,855 11,41,785 19,49,899 (An open ended scheme investing in Equity, Debt, Gold/Gold ETF/units of REITs & InvITs and such other 2.60 5.35 8.63 9.39 asset classes as may be permitted from time to time) 3,66,106 6,71,555 12,51,002 23,91,075 ICICI Prudential Multicap Fund 1.10 4.46 11.26 13.22 3,86,721 7,17,692 12,65,718 22,84,626 (An open ended equity scheme investing across large cap, mid cap and small cap stocks) 4.71 7.10 11.52 12.37 ICICI Prudential Balanced Return (%) Advantage Fund (An open ended dynamic asset allocation fund) ICICI Prudential Return (%) Focused Equity Fund Return (%) Return (%) (An open ended equity scheme investing in maximum 30 stocks across market-capitalisation i.e. focus on multicap) ICICI Prudential Value Discovery Fund (An open ended equity scheme following a value investment strategy) ICICI Prudential Long Term Equity Fund (Tax Saving) (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Data in XIRR (%) terms and as of July 31, 2019 Past performance may or may not sustain in the future.

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 15TARAKKI TIMES, JULY-AUGUST 2019 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | August 2019 Scheme Name BL Rating Trailling Returns (%) YTD Absolute 1 Year CAGR 3 Year CAGR 5 Year CAGR -2.0 8.5 ICICI Prudential Bluechip Fund -5.0 -6.9 7.8 6.0 ICICI Prudential Large & Mid Cap Fund -4.8 8.9 ICICI Prudential Multicap Fund -10.0 -8.0 4.4 8.0 ICICI Prudential Midcap Fund -2.8 4.8 ICICI Prudential Smallcap Fund -3.3 -10.8 5.5 5.5 ICICI Prudential Focused Equity Fund -5.0 6.8 ICICI Prudential Value Discovery Fund -3.7 -13.4 4.6 7.3 ICICI Prudential Long Term Equity Fund (Tax Saving) -3.1 -12.3 1.2 11.6 ICICI Prudential FMCG Fund -2.6 13.8 ICICI Prudential Banking & Financial Services 5.1 -10.8 4.2 10.3 ICICI Prudential Technology Fund -5.0 ICICI Prudential P.H.D Fund -1.3 -11.9 2.8 - ICICI Prudential Equity & Debt Fund 4.0 9.3 ICICI Prudential Equity Savings Fund 5.5 -9.1 5.4 - ICICI Prudential Ultra Short Term Fund 5.9 9.1 ICICI Prudential Savings Fund 5.4 -9.7 8.4 8.3 ICICI Prudential Money Market Fund 6.6 -7.0 10.1 7.8 ICICI Prudential Short Term Fund 5.3 -0.2 14.6 8.5 ICICI Prudential Medium Term Bond Fund 7.8 -12.1 8.2 ICICI Prudential Bond Fund 10.6 -3.2 - 8.9 ICICI Prudential Long Term Bond Fund 7.0 5.5 6.9 10.2 ICICI Prudential All Seasons Bond Fund 6.9 8.5 6.5 10.0 ICICI Prudential Corporate Bond Fund 5.7 8.7 7.8 8.4 ICICI Prudential Credit Risk Fund 7.1 8.4 7.8 8.4 ICICI Prudential Banking & PSU Debt Fund 8.4 9.4 7.4 8.8 ICICI Prudential Gilt Fund 4.1 7.2 7.4 10.0 ICICI Prudential Regular Savings Fund 1.4 10.9 6.8 9.6 ICICI Prudential Balanced Advantage Fund -0.4 16.8 7.1 8.6 ICICI Prudential Child Care Fund (Gift Plan) 10.0 8.8 6.8 9.6 8.0 8.1 7.6 9.5 7.6 12.0 7.6 6.0 7.6 1.8 8.0 -4.3 7.0 4.8 Source : NAV India; NAV for the growth option as on 23-08-2019. 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.