Tarakki Times English December 2017

A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS Professional Views MUMBAI | DECEMBER 2017 | PAGES 10Pg. 2 A balancing actWe expect 30%growth in corporateearnings over thenext two years S Naren, ED & CIO ICICI Prudential Mutual FundPg. 3Value strategyICICI Prudential ValueDiscovery FundMrinal Singh, Deputy CIO Equities Mutual Fund Insight | November 2017 ICICI Prudential Mutual FundPg. 5 Nimesh Shah equities is on account of retail make investors aware that it’s MD & CEO investors moving from traditional time to be cautious.Dynamic Plan - a ICICI Prudential Mutual Fund investment avenues to financialwealth creator assets. Hence, it is important for Growing clout of domesticdelivers 23x in 15 The last year has been very the industry to note the lessons funds vis-a-vis FIIsyears @ 24 % CAGR encouraging for mutual fund from 2007, when sector funds industry as a whole, given the were the most sold product. That Over the last three years, the S Naren, ED & CIO improved participation of retail came back to hurt several industry SIP book has grown ICICI Prudential Mutual Fund investors in capital markets via investors in the years ahead and consistently, given the increased mutual funds. What’s heartening consequently the industry. participation of retail investors Fund Reviews this time around has been the across T-15 and B-15 cities. This growing SIP culture and tenacity Now in the last three years there has provided heft to domesticPg. 6 of investors to stay invested even has hardly been a meaningful institutional investors and has during volatile times. correction, which means helped act as a counterbalance toICICI Prudential Long Term Equity Fund investors who have recently foreign institutional investors.(Tax Saving) The increased participation of entered the market haven’t seen a investors from B-15 cities down cycle. In such a situation, Outlook for equity and debtOne Fund Review (growing at 30 per cent), when we have constantly highlighted compared to T-15 cities (growing the importance of asset allocation The markets have been buoyantPg. 7 at 27 per cent) and adoption of and not going overboard on but corporate earnings are yet to digital platforms have also been equities. We have advocated materialise. In such a situation,ICICI Prudential Value Discovery major developments. investors to opt for hybrid funds, we believe market returns haveFund especially balanced-advantage been front-ended, owing to which The industry witnessed the funds, which help an investor take we have turned cautions onBuoyed by large-cap slant, advent of eKYC, wherein all the exposure to both debt and equity market. From a one-year view,value picks details of the new investor are as debt provides the required debt remains an attractiveOne Fund Review captured from the Aadhaar cushioning during volatile times. investment opportunity but from database. ICICI Prudential AMC a three-year perspective, thePg. 8 launched biometric KYC, which is Risk controls return expectations from debt asList of ICICI Prudential a first in the Indian mutual fund an asset class have to beFunds in Mint space. This arrangement ensures The risk control is mainly in the moderated.SIP Top UP that the entire KYC procedure is form of constant communication completed within a few minutes. with investors and distributors toPg. 9ETW Funds 100 Amidst all this, the hallmark of the When it comes to incrementalSystematic Investment Plans year 2017 would be the rise of equity allocation, balanced- balanced-advantage funds. In fact advantage category of funds Tarakki Corner 57 per cent of the sales have been should be the first point of Pg. 10 in balance-advantage category for consideration. the AMC. In the years ahead, we Ajay Sipani expect the AUM of this category ARN - 2733 to surpass the collective AUM of Kolkata the equity category. Managing return expectations The increasing inflow intoThe 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, DECEMBER 2017 Interview We expect 30% growth in corporate earnings over the next two years The Hindu Business Line | November 10, 2017S Naren pick-up in earnings. Over the next banking and infrastructure are well. For instance, in 1998-99, aED & CIO two years, we expect nearly 30 the sectors that are likely to see number of technology, mediaICICI Prudential Mutual Fund per cent growth in corporate some traction. Within banking, and telecom stocks entered into earnings. we like financial supermarket Nifty and in 2006-07An improvement in capacity banks or lenders that offer a infrastructure and metal stocksutilisation could be the trigger for Among the large-cap stocks, variety of financial products such made their way to the index.a rebound in corporate earnings, which sectors are expected to as mutual funds and insurance.says S Naren, Chief Investment bounce back this fiscal? What This trend is currently playing outOfficer, ICICI Prudential Mutual sectors should investors avoid? In the infrastructure space, ports in the US as the markets thereFund. Excerpts: and aviation industry are poised are close to peaking. As a result, We expect earning to start to witness an expansion due to it has been difficult to beat theGiven the uncertainty over reviving next year in sectors such the government’s focus. The benchmark indices in the US thiseconomic growth and the as banks, capital goods, power, power sector is currently going year. After the bubble phase,recent run-up in the markets, technology, pharmaceuticals. through low capacity utilisation. there is generally a marketdo you think large-cap stocks We a r e p o s i t i v e o n I T, With an uptick in the capex cycle, correction. During that phase,are currently overvalued? pharmaceuticals from a three- we believe the sector will large-caps tend to outperform year point of view. In pharma, register higher topline growth mid- and small-caps as seenWhen compared to mid- and many companies are currently and earnings. from 2001 to 2008.small-cap companies, large-cap trading very cheap compared tocompanies are relatively better their inherent valuations. We Why should investors be So, we have a situation wherevalued, at this point in time. From believe a turnaround can happen looking at large-cap stocks at both on the upside and thea cyclical perspective, the market in the pharmaceuticals space this point in time? downside, large-caps tends tois yet to reach its peak as the with increased traction in key perform better. Hence large-capcapex cycle, credit growth, FDA approvals and strong R&D In last two instances of a market benchmark-oriented investing iscorporate earnings and capacity focus on complex generic boom, it was seen that the to be preferred over mid- andutilisation are yet to improve. products. participation of companies in the small-caps. growth narrowed towards theOwing to these factors, we When it comes to IT, growth is second half of the boom. This is What would be impact onbelieve that the equity market is stabilising after 24 months of the phase when markets start large-cap stocks if foreignon the verge of taking off. turbulence and is expected to peaking. Also, the few sectors portfolio investors pull out of pick up with the depreciation of that gained start becoming part the market? the rupee and margin expansion. of the benchmark. The large-cap From a near-term perspective, benchmark tends to perform There could be an impact, but How the funds performed Annual returns (in %)What Sensex and Nifty 22.0earnings do you expecti this 21.7fiscal compared to last year, 9.5and what are your expectations 19.5for the next two years? 13.1 22.8 11.4 11.2 13.8 10.8 11.9 18.2 17.9 19.5 15.2 18.0The earnings cycle is yet to play 1 year 3 years 5 yearsout in India. An improvement incapacity utilisation would be the AUM in ` crore (as of Sept 30, 2017) 7,798 Contd. on page 4trigger that could lead to a 2,672rebound in corporate earnings. ICICI Prudential Dynamic Plan 2,668As the capacity utilisation in ICICI Prudential Top 100 19,601sectors such as cement, power ICICI Prudential Equity Income Fund 21,581and several other sectors ICICI Prudential Balanced Fund 14,439improve, corporate profitability ICICI Prudential Balanced Advantage Fundtoo will start to grow. ICICI Prudential Focused Bluechip Equity FundWe believe it is only a matter oftime, before earnings start toplay out. Our view stems fromthe belief that the leveragingcycle can pick up, along withimproved capacity utilisation bycorporate, which can lead to a Returns as on Nov 3, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Interview 3TARAKKI TIMES, DECEMBER 2017ICICI Prudential Value Discovery Fund's fund manager,Mrinal Singh, fields questions about the fund andexplains why the fund is still promising.Mutual Fund Insights | December 2017What is the reason for the short w o r k s . Yo u w o u l d r e q u i r e a defined mandate in terms of Mrinal Singhterm underperformance of the patience because there are the market cap or buy along with Deputy CIO EquitiesValue Discovery fund? bouts of underperformance and the market. ICICI Prudential Mutual Fund stronger performance.In line with the value-investing Having said that, the number one done substantially better thanprinciples that we have practised Long-term returns are an challenge is not the size; it is the large caps and hence it’s time forfor almost 13 years, we give outcome of following this market itself because there can large caps to catch up.priority to valuations, earnings, strategy over prolonged periods be phases where the market is inbusiness quality and financial of time. a zone, in terms of valuation, We are in a phase where astrength of a company. where opportunities which fulfil substantial shift of domesticWhenever we find that there is a What challenges do you face the criteria of value investing are savings is happening fromdisconnect between price and with the sharp increase in not many. physical assets to financialvalue, we tend to become a bit AUM? Is it by any way assets.more choosy about what we contributing to the fund’s I don’t think that size is ainvest in. We always prefer underperformance? challenge as of now. We are still This has resulted in the marketbusinesses where the risk- able to manage pretty much the moving up, taking into account areward is favourable. A huge part of the AUM accretion money that we have. The issue is decent bit of expected earnings that you have seen in the last that the opportunities in the growth. But our choice of stocksIf you look back in the past, there seven years is courtesy current phase of the market has been predominantly in thehave been phases where the successful stock investing that seem to have contracted out-of-favour zone, where themarkets have run ahead of the we have done. The stocks substantially from the value- valuations are more comfortable.data, which typically are themselves have grown in value investing perspective. And in the last one-and-a-halfmomentum phases. In such and this reflects on the NAV. Net years or so we haven’t had aphases, we have phase where value unlocking hasunderperformed the market. But While evaluating a broadly happened in thatif you look at our historical fund’s performance, segment.performance, there is nothing to take into account theworry about because complete cycle, Also, we haven’t seen a full cyclesubsequently we more than which includes three- in the current phase. Whilemake up for our under- four market phases. evaluating a fund’s performance,performance and this is the one has to take into account thestrength of value investing. inflows have been a major The fund’s portfolio has complete cycle, which includes contributor in the last one-and- a- substantially shifted towards three-four phases that theWhy do value stocks half years. large caps. In the short term, market has to offer. That’s theunderperform in the the fund has also been reason why we tell investors tomomentum phase? The important point is that we underperforming the large-cap look at historical performance are not bound by market cap. category. Why is that so? while making their investmentMomentum basically means Neither do we choose to invest decisions.prices running ahead of the data. along with the market. We tend From a risk–reward perspective,Herein we generally see two to buy stocks when they are large caps are a better place to In comparison to thephases which follow: either the going through a difficult time. be in. The most important thing benchmark, you are currentlydata catch up or there could be is that a lot of our mid-cap overweight on technology.time correction of sorts. As value Our ability to scale up is far more investments have turned into Why are you so optimisticinvestors, we need to be very as compared to some other large caps as they gained in about it?conscious of the data. strategies which have to stick to value. Meanwhile, mid caps have If you look at our overweight When we filter through things, positions, they arethere is a set of stocks that come predominantly three sectors:up. Very often, we find our technology, pharma andcheckboxes ticked in a zone industrials. This is the outcomewhich has out-of-favour stocks of three specific stocks, one inor sectors. Such stocks have each sector, rather than thebouts of underperformance sector itself. But we pickperiodically but when their value businesses rather than sectors.is unlocked, the performance Obviously, businesses do belongimproves substantially. We have to a sector and when you create aseen in the past that it more thanmakes up for the short-termunderperformance.This is why we tend to stronglypush or propagate the idea ofhavinga long horizon becausethat is how value investingThe 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, DECEMBER 2017 Interviewposition because you like the would sustain. Is there any particular sector followed by us. For the revenuebusiness and the price, it creates where you see a lot of value stream that real-estatean overweight position in that In one of your earlier investment opportunity? What businesses deliver, you will seesector. interviews, in 2015, you sector would you like to avoid? that the profits are meagre. And regretted missing the rally in as equity investors, we are moreThere are challenges in the FMCG stocks. You are still We have consistently stayed concerned about profits.technology space. It is not that underweight on FMCG. What is away from real estate for a longthese companies are not capable your strategy this time? period of time. Industrials, along How would you reassureof meeting the challenges. The with power, still look like a good investors of your fund’sonly thing is that there is the If you look at the golden phase of place. The valuations are potential.traditional part of business which FMCG stocks in 2008-09 all the reasonable in power and the risk-is struggling for growth and it is a way till 2013, we didn’t have any reward is favourable in select For our customers, what isbig part of revenue. And the new FMCG company. For a brief pharma and tech stocks - more in important to see is if our strategypart of the business is galloping period of time, we had FMCG in pharma as of now. This is also has the capability to sail throughat a very fast pace but it is a small 2014 but between 2009 and reflected in ourportfolio this phase of underperformancepart of the business. 2013, we didn’t have any FMCG allocations. and, more than that, s t o c k . H o w e v e r, w e s t i l l compensate for it going ahead.We have evaluated the strategies managed to get very good What is the reason for staying This is where having a trackthat these individual companies returns. away from real estate? Is it record of 13 years throughare pursuing. Accordingly, we because of the new market phases is very helpful.have deployed investments in The key part of value investing regulations? We would urge our investors tozones where we think the philosophy is to focus on the consider looking at ourstrategies have the best price. We have managed to The issue with the real-estate performance data through thosepossibility of succeeding. invest in the best-performing sectoris that we have struggled phases and even across a very sectors and if they don’t fulfil our to make sense of a lot of balance long phase of flattish markets.Also, this has to couple with the valuation criteria, we have still sheets. In highly leveragedright price that we pay for our managed to get good returns by businesses, we, as equity I would also like investors toinvestments and the kinds of buying what we think is cheap investors, have also struggled to consider the SIP returns that wechecks that we would like to and doing that consistently. figure out what is there left for have generated for them over ahave. This framework applies not us. By nature, real-estate longer time horizon, say five oronly to technology but also to So, it’s not that we need to own a companies are highly leveraged 10 years, and then make anevery investment that we stock which we believe could be businesses and most of the informed decision about howpursue. steeply priced. Having said that, products that they manufacture they want to proceed with their that doesn’t mean that FMCG is and sell are mortgaged to investments.We have seen such phases when something which I won’t own at lenders.particular sectors have become all. Obviously, I would evaluateout of favour in the past. That is opportunities and if I find FMCG They have the first right followedthe case even now with a better opportunity, I would own by the government and thentechnology. We have to rightly it.pick the names which we believeWe expect 30% growth in corporate earnings over the next two years Contd. from page 2historically, it has been seen that better, I would like to use the cannot invest blindly in this to debt and equity is dynamicallyin a big decline in India, traffic signal analogy. We are phase. managed by well-informed fundinsurance companies step in and currently at the yellow light and managers. It allows investors togo on a buying spree. They are any switch to green would make As a result, we are of the view take an exposure to each assetmajor buyers in large-cap stocks. valuations expensive. When it that investors should consider class, based on their prospects. turns red, it means the market is balanced advantage andWhat would you like to advise heading toward a bubble, which dynamic asset allocationinvestors at this point in time? is very unlikely now. When in the category of schemes of mutual yellow zone, one has to look funds for incremental allocation.To make people understand around and be careful. One In such schemes, the allocation ICICI Prudential Dynamic Plan ICICI Prudential Top 100 ICICI Pru Foc Bluechip Equity FundThe earnings cycle Portfolio top 10 stocks % of assets Portfolio top 10 stocks % of assets Portfolio top 10 stocks % of assetsis yet to play out inIndia. Infosys 4.86 ICICI Bank 5.69 HDFC Bank 6.87The equity marketis on verge of ICICI Bank 4.30 Oil & Natural Gas Corpr. 4.55 ICICI Bank 6.62taking off. Larsen & Toubro 3.51 Infosys 4.47 Maruti Suzuki India 4.17 Tata Chemicals 3.33 Tata Chemicals 4.09 State Bank of India 3.78 State Bank of India 2.82 Bharti Airtel 3.95 ITC 3.73 Power Grid Corporation of India 2.74 Power Grid Corporation of India 3.82 Motherson Sumi Systems 3.68 Bharti Airtel 2.67 Tata Steel 3.62 Axis Bank 3.58 ITC 2.56 Axis Bank 3.43 Infosys 3.28 Oil & Natural Gas Corpr. 2.50 Larsen & Toubro 3.42 Bajaj Finserv 3.21 Cipla 2.42 State Bank of India 3.31 NTPC 3.15The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Interview 5TARAKKI TIMES, DECEMBER 2017Dynamic Plan - a wealth creator delivers23x in 15 years @ 24 % CAGRWealth Forum | November 27, 2017ICICI Pru Dynamic Plan extreme optimism and vice- classes moving, goingcompletes 15 great years of versa. The fact that ICICI forward?wealth creation - a period in Prudential Dynamic Plan has thewhich investor wealth grew by ability to turn both conservative Naren: It is difficult to predict S Naren23x, at a huge 24% CAGR. The and aggressive makes it a very how the ratios will move ED & CIObiggest lesson Naren says his interesting pick for long-term between various asset classes in ICICI Prudential Mutual Fundteam imbibed in this eventful 15 investing. the days ahead. However, it isyears journey, is that markets are possible that there may be timestruly dynamic - gyrating from The fund was launched at the when this fund will be veryextreme pessimism to extreme end of the biggest bear market in aggressive, or turn defensive,optimism and vice-versa. That's India. Thereafter, we have seen a depending on the prevailingwhere the dynamism of this fund complete market cycle market conditions. We believecomes handy - it can move from comprising a rally (2007),aggressive to conservative in its significant correction (2008) and Calendar ICICI Prudential Nifty 50 Outperformanceequity stance, even as it a recovery/rally (2009) followed Year Dynamic Plan - Growthsearches for value across other by a sideways movement (till 3% 9%asset classes including bonds, 2013). 2016 12% -4% 3%offshore equity and going 2015 -1% 31% 6%forward, REITs and InvITs. Consistent Performance 2014 37% 7% 9% 2013 16% 27% 3%WF: 23x over 15 years, ICICI Prudential Dynamic Plan 2012 30% -25% 4%averaging 24% annual returns has outperformed in each year 2011 -20% 18% 3%is a truly commendable 15 year except in 2007, when markets 2010 21% 76% 4%journey for I Pru Dynamic. What were in bubble territory 2009 80% -52% 7%would you say are the biggest 2008 -45% 54% -14%learnings for your investment WF: Though Dynamic is 2007 41% 40% 19%team in navigating this fund so positioned as a multi-asset 2006 58% 36% 22%successfully over the last 15 fund with an ability to invest in 2005 59% 11% 5%years? REITs/InvITs and offshore 2004 16% 72% 27% equity in addition to domestic 2003 98%Naren: The key lesson our equity, debt and cash, theinvestment team has learnt over proportion of offshore equity Past performance may or may not be sustained in future. Inception Date:the last fifteen years, is that (around 6%) and REIT/InvIT October31, 2002.markets are 'dynamic' and tend (0%) is rather low currently.to move in cycles, gyrating How do you see the ratios Source: MFI Explorer.between extreme pessimism to between the various asset 23x 7.4% Rs. 85 lakh such an approach to markets, average makes this fund an ideal lump growth in annual dividend yield Growth of Rs. 10,000 sum investment opportunity for scheme’s NAV since inception^ monthly SIP since the long-term, even though theresince inception# inception# may be phases of subdued performance owing to the 13/14* 24% 8% portfolio positioning. In effect, years of this is not a fund which can beoutperformance since compound annualised average alpha created compared to an equity return since inception# year-on-year since 2003 benchmark. 2002 WF: You take contrarian calls in 99% 23% 27% the equity space, which have paid off well historically - of the time since average average although as your presentationinception, 10-year 3-year return 1-year return suggests, investors need to bereturns have been since inception# since inception# patient for such calls to pay off, especially when you bet more than 12% against momentum. What are some of the contrarian calls youPast performance may or may not be sustained in future. Performance data refers to growth plan. #Inception date of are currently taking which yougrowth plan: October31, 2002. ^Inception of dividend plan: January 09, 2004. Source: MFI Explorer. Data as of Sep 30, believe will do well over the2017. next 3 years? Naren: Sectors like technology and health care is the contrarian call which we think may do wellThe 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, DECEMBER 2017Equity Investment Strategy: Fixed Income: Other Assets: Contrarian Calls Taken In PastFlexibility Credit Calls: The fund seeks The fund also seeks to take Calendar Year Contrarian Call Alpha Generated (%) Net AlphaIt is a full-invested fund that to invest in: opportunistic exposure in & Weightage (%) by the Schemecan increase or decrease other assets when equity 2016exposure to equity assets -Highly-rated fixed income markets are expensive. 2015 Power (8%) 2.3% 9.5%depending on market securities. 2014valuations -Securities that are expected -Foreign Equity: 2013 Cash (14%) 1.59% 2.7% to receive a rating upgrade. The Fund aims to invest in 2012Contrarian Calls foreign equities based on the 2011 Power (8%) 1.64% 5.7%The fund seeks to invest in -Duration Calls: The fund following parameters: 2010stocks and sectors that may aims to manage duration 2009 Telecom (6%) 2.07% 9.6%be currently unpopular and dynamically based on interest -The company should be aunder-owned, but could do rate scenarios. consumer brand with a Metals (2%) 2.34% 2.6%well over the long term. following in India -The company should have Cash (15%) 5.43% Interview4.3% robust business fundamentals and a longterm growth story Pharma & Healthcare (6%) 3.9% 3.3% Pharma & Healthcare (9%) 6.4% 14.9% -Commodities: The portfolio of the scheme is subject to changes within the provisions of the The fund aims to Scheme Information Document of the Scheme. Past performance may or may opportunistically invest in not be sustained in future. Source: MFI Explorer, Internal. REITs and InvITs.The portfolio of the scheme is subject to changes within the provisions of the Active Fixed Income AllocationScheme Information Document of the Scheme. REIT: Real Estate InvestmentTrust. InvITs: Infrastructure Investment Trusts. 8.0 7.8over the next three years. In the up. Currently, we have a low base 7.6 7recent past, one of our contrarian given the muted earnings thus 7.4 6calls, which were corporate far. 7.2 5banks, have already played out, 7.0 4delivering returns higher than the WF: What is your fixed income 6.8 3benchmark. strategy in this fund and how 6.6 2 are you positioning the fixed 6.4 1WF: Is taking cash call now a income portion of the fund in 6.2 0sensible contrarian bet to take? the current debt market 6.0How do you see markets environment?moving in the short to medium Jan-16term? Naren: We have a fairly large Feb-16 exposure to perpetual bonds (of Mar-16Naren: In this fund, when the fundamentally strong banks), Apr-16market turns expensive, profits which have high coupon and a May-16are booked and moved to other small allocation to accrual Jun--16asset class while when the securities. Jul-16markets become cheap, the Aug-16equity holding increases. It is in WF: For investors who are Sep-16light of this arrangement (based looking at making a choice Oct-16on valuation) that cash calls, if between your BAF and your Nov-16any, are taken. From a short-term Dynamic Fund, how would you Dec-16perspective, market is a function suggest they evaluate Jan-17of how the inflow momentum suitability to make an Feb-17pans out. In the medium-term, appropriate choice? Mar-17we believe as the capacity Apr-17utilisation of Corporate India Naren: We believe ICICI May-17improves, earnings too will go Prudential Balanced Advantage Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Duration (in years) 10 Yr G Sec The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. Source: Internal, Data as of Oct 30, 2017. Fund (BAF) is more compared to BAF but as and conservatively positioned and is when the equity cycle turns (is apt for conservative investors about to get over), we may take when compared to ICICI an equally conservative stance in Prudential Dynamic Plan. As of Dynamic Plan. Having said this, November 21, 2017, the net Dynamic Plan is more equity weightage in BAF was conservative than a pure equity 37.14% as against that of fund. Dynamic Plan at 74.10% . We believe Dynamic Plan is more aggressive in nature as ICICI Prudential Long Term Equity Fund (Tax Saving) One Fund ReviewMint | October 2017mint Return50BEST Mint 50 is a curated list of 50 How ` 10,000 has grownFUNDS investment-worthy funds. 3,60,000ICICI Prudential Long Term Equity Fund 3,10,000 ICICI Prudential Long Term 3,30,010(Tax Saving) 2,60,000 Equity Fund (Tax Saving) 2,10,000 93,457 Nifty 500 Index 24 Oct 2017Corpus (` cr) (as on 30 Sep 2017) 4460.17 1,60,000 330.01 Source: Value ResearchNAV (as on 24 Oct 2017) 2.32 1,10,000Expense ratio (as on 30 Sep 2017) 2.50 60,000Category average expense ratio ` 500(as on 30 Sep 2017) 10,000Minimum Investment 19 Aug 1999 Base value taken as 10,000The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 7TARAKKI TIMES, DECEMBER 2017 ICICI Prudential Value Discovery FundBuoyed by large-cap slant, value picksThe Hindu Business Line | October 29, 2017The fund has the flexibility to go for stocks across the market capitalisation spectrumA significantly higher exposure to significantly, to upwards of 60 per cent. The fund currently has 15.7 per cent large-cap stocks and value-based Missing the spectacular rally in mid-cap exposure to banking, which is the top investment strategy make ICICI stocks, the fund has lagged its peers in preferred sector. Barring SBI, the fund’sPrudential Value Discovery a good bet in performance over the past two years. portfolio consists mainly of private bankchoppy markets. However, it ranks in the top quartile over the stocks. The recent bank recap plan long run. announced by the Centre has led to aNotwithstanding its lacklustre performance spectacular run in PSU bank stocks.in recent times, the fund has delivered Also, given the present iffy market, thecategory beating returns over the long run. fund’s far higher exposure to large-cap While the fund has minimal exposure to PSUThe fund has been a top quartile fund within stocks when compared to peers lends bank stocks, the Centre’s plan is likely toits category over five, seven and 10-year comfort. The fund has kept its exposure to have a positive rub-off on the sector as aperiods. large-caps at 88-90 per cent over the past whole. year.Deft moves Software and pharma are the fund’s other Value picks top sector choices. While the headwinds inICICI Pru Value Discovery, being a multi-cap these sectors are far from over, these stocksfund, has been able to deftly juggle stocks Going by its mandate, the fund has also could be good value picks in the long run.across the market capitalisation spectrum. made some good value picks over the pastThis has helped the fund cash in on rallies couple of years that have paid off well. Risk mitigationand contain downside better in volatile Balkrishna Industries and Bajaj Finserv are amarkets. case in point. While the fund’s portfolio is diffused with a little over 40 stocks, it carries someFor instance, through most of 2013 and until There are some bets, however, that failed to concentrated bets such as L&T, HDFC Bankmid-2014, the fund had 50-60 per cent of its deliver. Picks in the pharma and IT space, for and Sun Pharmaceutical Industries at 7-9 perassets in mid- and small-cap stocks. This instance, have dragged the fund’s cent of portfolio. Considering that these arehelped it deliver chart-topping returns in the performance in the last two years. A few companies with sound fundamentals andbuoyant 2014 market. It subsequently private and public bank stocks too have dominant presence in their sector, the risk istrimmed its exposure to mid- and small-cap impacted the fund’s performance over the mitigated to a large extent.stocks. In fact, since then, the fund has past one to three years.upped its exposure to large-cap stocks Steady over the long run Annual returns (in %)Assets as on Sep 30, 2017: ` 16,744 crore ICICI Prudential Value Discovery Fund 15.7% Banks S&P BSE 500 21.0 Fundas 14.9% Software 19.1 Large-cap slant 11.4% Pharmaceuticals Top quartile over long run 10.4% Construction 10.0 11.7 11.5 14.5 Value Strategy 8.5% Auto & auto ancillary 39.1% Others 1 year 3 years 5 years ICICI Prudential Value Discovery Fund One Fund ReviewMint | October 2017 Return How ` 10,000 has grown mint 1,60,000 ICICI Prudential Value Discovery Fund 1,35,509 1,40,000 S&P BSE 500 Index 50BEST Mint 50 is a curated list of 50 1,20,000 FUNDS investment-worthy funds.ICICI Prudential Value Discovery Fund 1,00,000Corpus (` cr) (as on 31 Aug 2017) 17137.39 80,000 60,000NAV (as on 5 Oct 2017) 135.78 66,595Expense ratio (as on 31 Aug 2017) 0.81 40,000Category average expense ratio 2.13 20,000(as on 31 Aug 2017) 0 5 Oct 2017Minimum Investment ` 1,000 19 Aug 2004 Source: Value Research Base value taken as 10,000The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

8 TARAKKI TIMES, DECEMBER 2017 Fund Reviewmint List of ICICI Prudential Funds in Mint50BESTFUNDSMint | November 2017FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr) 15,444.93LARGE CAPICICI Prudential Focused Bluechip Equity Fund 10.50 16.65 NAMULTI CAP 10.92 17.56 11.76 8,640.96ICICI Prudential Dynamic Plan 17.19 20.41 NA 115.11ICICI Prudential Nifty Next 50 Index Fund 10.18 20.74 16.11 17,495.53ICICI Prudential Value Discovery FundTAX PLANNING 8.90 17.55 11.76 4,753.10ICICI Prudential Long Term Equity Fund 12.67 18.55 11.13 22,064.71(Tax Saving)EQUITY-ORIENTEDICICI Prudential Balanced FundFUND CORE 3-month return (%) 6-month return (%) 1-year return (%) Fund size (Rs cr)DEBT-ORIENTEDSHORT TERM 0.68 3.27 5.58 12,516.27ICICI Prudential Short Term PlanSIP Top UpA monthly Systematic Investment Plan (SIP) of Rs.10,000 with an annual Top Up of 10% in these schemes has generated returns as stated below.Scheme Name 5 Years 10 YearsICICI Prudential Return (%) 13,93,409 52,41,381 Midcap Fund 26.85 20.01 ICICI Prudential Return (%) 11,45,894 --Focused Bluechip Equity Fund 18.03 --ICICI Prudential Return (%) 11,75,722 44,57,095Balanced Fund 19.23 16.95ICICI Prudential Return (%) 11,45,924 41,59,099 Top 100 Fund 18.02 15.45ICICI Prudential Return (%) 10,65,259 38,61,982 Dynamic Plan 18.05 16.07ICICI Prudential Return (%) 11,65,444 42,48,979Multicap Fund 18.95 15.9ICICI Prudential Balanced Return (%) 10,50,926 38,78,586 Advantage Fund 14.42 14.2 ICICI Prudential Return (%) 10,52,753 --Select Large Cap Fund 14.48 -- ICICI Prudential Return (%) 11,85,649 51,60,145Value Discovery Fund 19.91 20.49ICICI Prudential Long Term Return (%) 11,14,357 41,68,585 Equity Fund (Tax Saving) 17.08 16.66Data in XIRR (%) terms and as of October 31, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 9TARAKKI TIMES, DECEMBER 2017ETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | November 2017 Value Research Returns (%) FUND Fund Rating 3-month 6-month 1-year 3-year 5-year 7.48 17.1EQUITY: LARGE CAP 6.98 12.59 30.27 10.95 21.29ICICI Prudential Focused Bluechip Equity Fund 8.44 8.71 19.71 10.55 20.77 7.23 18.81ICICI Prudential Value Discovery Fund 2.27 16.61 38.03 17.55 11.93EQUITY: MULTI CAP 2.07 15.19ICICI Prudential Nifty Next 50 Index Fund 1.41 9.89 23.02 12.96 8.77HYBRID: EQUITY ORIENTED 0.45 5.52 11.78 10.48 9.45ICICI Prudential Balanced Fund -0.53 11.42HYBRID: DEBT-ORIENTED CONSERVATIVE 4.81 10.2 11.58ICICI Prudential MIP 25 (An open ended Income 3.52 6.85 8.75scheme. Monthly income is not assured and is subject 3.43 5.25 9.24to the availability of distributable surplus) 2.95 4.1 10.05ICICI Prudential Child Care PlanICICI Prudential Regular Income Fund(An open ended income scheme. Income is not assuredand is subject to the availability of distributable surplus)DEBT: INCOMEICICI Prudential Banking & PSU Debt FundDEBT: DYNAMIC BONDICICI Prudential Long Term PlanSystematic Investment PlansA monthly Systematic Investment Plan (SIP) of Rs. 10,000 in these schemes has generated returns as stated belowScheme Name 3 Years 5 Years 7 Years 10 YearsICICI Prudential Return (%) 4,88,440 11,63,954 19,58,537 34,46,903 Midcap Fund 20.85 26.85 23.77 20.01 ICICI Prudential Return (%) 4,65,057 9,40,788 15,30,276 --Focused Bluechip Equity Fund Return (%) 17.35 18.03 16.83 -- Return (%) 29,21,360 ICICI Prudential Return (%) 4,65,654 9,68,629 16,20,558 16.95 Balanced Fund Return (%) 17.44 19.23 18.44 26,95,137 Return (%) 15.45 ICICI Prudential Return (%) 4,68,607 9,40,571 15,31,615 27,86,991 Top 100 Fund Return (%) 17.89 18.02 16.85 16.07 Return (%) 27,61,802 ICICI Prudential 4,64,941 9,41,048 15,29,201 15.9 Dynamic Plan 17.33 18.05 16.81 25,20,789 14.2 ICICI Prudential 4,54,584 9,62,044 15,73,346 -- Multicap Fund 15.75 18.95 17.61 -- 35,36,067 ICICI Prudential Balanced 4,34,622 8,60,949 14,18,390 20.49 Advantage Fund 12.62 14.42 14.7 28,76,917 16.66 ICICI Prudential 4,34,687 8,62,148 13,75,621 Select Large Cap Fund 12.63 14.48 13.84 ICICI Prudential 4,31,668 9,84,755 17,03,184 Value Discovery Fund 12.15 19.91 19.83 ICICI Prudential Long Term 4,34,152 9,19,167 15,23,198 Equity Fund (Tax Saving) 12.55 17.08 16.7Data in XIRR (%) terms and as of October 31, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

10 TARAKKI TIMES, DECEMBER 2017 Tarakki CornerYour YToaur rTaarakkkki CiornCer ornerAjay Sipani A graduate of Umesh Chandra College, Kolkata, Ajay conducts personal counselling sessions for theARN - 2733 started his career working as a manager in a attendees.Kolkata pharmaceutical company. After being in the healthcare space for five years, he moved to financial services in He opened close to 1000 Public Provident Fund the year 1997. The new role of advising blended with accounts in one year, which built a network of strong his personality and demeanour, as he enjoyed relationships with many reputed families of the city. travelling, engaging with people and influencing them. Today, he has more than 5000 customers. He utilizes the power of social media to engage clients on a His deep-seated knowledge about markets and regular basis apart from sending brochures, articles, financial products led most friends to seek his advice and greetings regularly. He received an award for Best on finances. Ajay realized that people in this country are Performing Individual - Financial Advisor in 2013, keen on investing in markets but lack the right awards held by a reputed financial news channel. investment guidance. Ajay decided to set up his financial advisory firm, so he can understand He is managing close to `160 Crore (out of which 90% challenges faced by the investor and provide are Equity Investments) with a SIP book of ` 1 Crore. He customised solutions based on a careful analysis of believes SIP is one of the best ways to stay invested in their needs. While Ajay started out in Kolkata, today he mutual funds, so his next goal is to double his SIP book has clients from across the globe. His initial client base in this financial year. He believes that the Mutual Fund included his friends and family members. Industry is set to grow. Due to the lack of financial literacy in India, one of his main challenges was to spread awareness about mutual funds in Kolkata. In 1998, he started organizing investor awareness programs over the weekends through which he acquired lots of clients. As on today, he meets more than 1500 new people every year through these weekly programmes. His team alsoThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit isgiven by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICIPrudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. Alldata/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC tak es no responsibility of updating anydata/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss,damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Thesector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in thesesector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material.