IPRU Insights - Issue 1, 2023

AN INVESTOR EDUCATION INITIATIVE BY InIPRsUi ghts Issue 1, 2023 DIVERSIFICATION: A POWERFUL INVESTMENT TOOL Stocks Commodities Bonds Cash FwPolwelalFPwwosolwew.eilclawvouisciw.ssiieicpotuivrcnuusii:sspmoiartnuftu.:mcsofma.ctom https://www.facebook.com/iciciprumf https://twitter.com/iciciprumf Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

DISCLAIMER INDEX CEO LETTER: Be Mindful of Asset Allocation at All Times 2 3 CIO LETTER: Strategy for Uncertain Times 4 5 CHECKLIST: New Year Financial Resolution 7 8 INFOGRAPH: Asset Classes for Optimal Diversification 9 10 FUNDACLEAR: Importance of Diversification 12 13 TAX CORNER: How to Calculate Capital Gains in MFs? 14 16 QUIZ: Are You Ready to Test 17 GUEST COLUMN: Why You Need a Multi-Asset Portfolio 19 20 STORYBOARD: Why Diversification Is Necessary 21 22 GUEST COLUMN: How to Teach Your Child the Value of Money? Travel: WAYANAD: A Hidden Tourist Gem RECIPE: Peas, Purple Yam and Potato Pattice Recipe FITNESS: Healthy Habits to Incorporate in 2023 BOOK: Atomic Habits REVIEW: Avatar : The Way of water WORD PLAY DISCLAIMER

CEO Letter Be mindful of asset allocation at all times when investing MR. NIMESH SHAH, MD & CEO, ICICI Prudential AMC Changing weather and climate conditions exposes all of us to some form of health risk or the other. Yet, no two such risks are alike. For instance, in the summers, the extreme heat could cause a heat stroke or rashes com- pared to say the monsoons, when chances of malaria or dengue goes up. The risks involved with investing are somewhat similar and how these risks play out, impact the returns potential of a specific asset class. Asset allocation helps investors to lessen the impact of risk their portfolio is exposed to as each asset class has a differ- ent correlation to one another. Asset allocation plays a crucial role when creating a portfolio to achieve a financial goal. By distributing your investments across different asset types, asset allocation aims to balance risk. Just the way you protect yourself with different types of clothes to suit different weather conditions, you need to be mind- ful about the asset allocation you will have for different financial goals and at different stages in life. Typical asset classes include equity, fixed income, cash and cash equivalents besides real estate and commodities. A combination of these are suitable based on the risk profile of the investor and the goal one is investing for. Ideally every investor would love to have an all-weather portfolio – one that is easy to create and maintain for their lifetime. But, practically, such a portfolio is hard to create given the frequent changes in the economy and markets. It is thus advis- able to have a watch over the asset allocation that one follows to know what changes to make to it and in what proportion for it to remain suitable for the financial goal one has. A closer look into all-weather portfolios will tell you that the allocation in such portfolios typically follows a wide or narrow range. Likewise, even with the right risk management tool against the weather; you may get wet because of the intensity of the downpour or because of a hole in the raincoat. Portfolio returns often get impacted despite the most suitable asset allocation, which is why you need to be careful and watchful of the asset allocation you follow. For instance, on days when the rains are very heavy; an umbrella may not protect you at all and you may have to consider not stepping out in the rain at all or travel in vehicles that can keep you protected from the rain. Being mindful about asset allocation when investing is important to ensure you achieve the financial goal for which you are investing. It is a quite a challenge for investors to predict the direction in which an asset class would move at any given point of time. So, it becomes imperative to allocate investments in a mix of asset classes. This is done so that if one set of asset classes or funds underperforms, the other asset classes will balance the underperformance. As an investor, if your wealth is spread across asset classes, they tend to make better returns. It is like having the appropri- ate clothes for all seasons and to know the changing weather conditions to accordingly wear the right clothes to protect oneself. 2 IPRU Insights

CIO Letter Strategy for uncertain times MR. S. NAREN, ED & CIO, ICICI Prudential AMC Stock market swings can leave even the best experienced investors on the edge. It is not easy to stomach volatil- ity, especially during times of wild falls in portfolio values when the markets enter a correction phase, especially for a prolonged period. At such times, the confidence of seasoned investors is tested. A natural reaction of many investors is to exit their investments just because of their inability to cope with market swings. On the contrary, when the markets are on an upswing, it takes a great deal to make sure investors do not get carried away and go overboard by allocating more to an up-trending asset class. Too much of anything is not good. Just the way, one should not overdo investments when the markets go up, one need not be anxious to exit when the market turns volatile during uncertain times. At such instances, the role of multi-asset strategy comes in handy. Multi-asset strategy involves investing in multiple asset classes, such as stocks, bonds, and alternatives – like real estate, gold and cash and cash equivalents. The allocation to each of these asset classes in a portfolio depends on one’s risk taking ability, the time horizon of the investment and the financial goal. Investors, especially those who have experienced losses understand the importance of downside protection. In uncertain times, downside protection is equally important as capital appreciation. The role of a multi-asset strategy is to aim and generate returns by way of proper asset allocation and dynamically moving between asset classes to generate a good in- vestment experience, while maintaining low investment risk. This strategy allows investors to sit back and stay calm during market uncertainties, while the strategy does its work of realising growth and minimising risk. It is not just the broad asset allocation principle that is followed; in case of multi-asset strategy the portfolio is well diversi- fied with the right mix of assets basis the prevailing market condition. The reason for stressing on asset allocation is be- cause any asset could outperform or underperform the others at any given time. Having a diverse multi-asset portfolio can protect investments from volatility and major market swings, which are common occurrence during uncertain times. This is achieved by dynamically moving across asset classes and diversifying within them as well. Investors can best let the experts handle this strategy, as it calls for a lot of expertise and real time experience in managing portfolios. Moreover, they are less biased when it comes to making decisions on which asset to move from and how much to diversify within assets. There are certain mutual funds in which this strategy is followed and over long term, the experience rendered is superior, especially during uncertain times, making them a favourable investment option to consider. These funds dynamically adjust their exposure to take advantage of short-term opportunities for more potential return or to avoid unnecessary risk. This way, the multi-asset approach aims to provide smoother positive returns over time. While strategic asset allocation plays an important role in long-term portfolio creation; in the short run, a dynamic portfolio al- location which adapts to changing market conditions through tactical positioning can not only navigate uncertain times, it can also achieve favourable gains. While what’s happening in the stock market is largely out of our control. By investing in funds that follow multi-asset strategy; investors can realise long-term stability from their portfolio returns. 3 IPRU Insights

Checklist New Year Financial Resolution It is a brand new year again, and it’s the time of the year when everybody is making year-end resolutions. But for all, the one important resolution should be to get a firmer handle on your finances. Here’s how to go about it MAKE A BUDGET The first step you should take toward disciplined spending and investment is to create a budget. It enables you to take charge of your finances and make future plans. You may track your spending and make investment decisions by creating a budget. DEFINE YOUR FINANCIAL GOAL Define your short- and long-term financial goals that you wish to achieve. Setting invest- ment goals should be your first step when it comes to investing. It can keep you motivated for investing and make it simpler to gauge your progress. DIVERSIFY YOUR PORTFOLIO Make sure your portfolio is diversified among various assets. Investing in different asset classes are always a wise move rather than concentrating on one asset. By doing this, you may significantly lower the risk and optimise returns. INVEST IN AUTOPILOT MODE All you have to do is put your investment plan on autopilot. These days it’s so very easy due to technology. Systemic investment plan (SIP) is the most suitable way to start this. This will ensure little less in your pocket to splurge, but your money will be directed towards investment to revisit your financial future. SET BILL PAYMENT ALERTS One of the big causes of losing money is late payments in credit cards, electricity bills, and so on. Look closer, the monthly interest payments amount to about 3 percent a month on credit cards. If you miss your payment, it not only increases the interest burden on you, the late fees, and other charges add up to a significant sum. 4 IPRU Insights

Infograph Diversification A smart investment strategy to achieve long-term financial goals and reduce portfolio risk A way to reduce risk WHAT IS IT? Spreading your investments across different assets classes Stocks Bonds Commodities Cash HOW DOES IT WORK? The goal of diversification is to reduce risk Single investment Don’t put all your eggs in one basket Stocks Diversified portfolio You still have a good portfolio because of diversification Stocks Commodities Bonds Cash 5 IPRU Insights

Navigate Through the Volatility with Diversification Diversify your portfolio in different assets because each asset has distinct characteristics HERE IS HOW YOU CAN BUILD A GOOD PORTFOLIO Equity Bond Commodity Cash & Risk: High Risk: Moderate Risk: High Equivalent Return: High Return: Moderate Return: Moderate Risk: Low Return: Low The above is based on general risks level associated with the given asset class based on its characteristics. The same are subject to change basis the market conditions and regulatory updates from time to time. How asset allocation helps REDUCES PORTFOLIO RISK Diversifying your asset across different asset classes mini- mizes the risk of loss from investing in one asset class WORKS AS LEVER AGAINST HIGH VOLATILITY Having many asset classes enhances your options to respond dynamically to a highly volatile period by tweaking the asset mix BOOST LONG TERM GOAL ACHIEVEMENTS A good asset mix based on long term reliable return helps in planning and staying on course accommodating gradual changes with time and changing risk appetite PROVIDES OPTIMUM ASSET GROWTH Many assets complement each other with negative correlation which is if one is underperforming other one outperforms so this provides stability to overall portfolio in uncertain environment 6 IPRU Insights

Fundaclear Importance of Diversification Diversification is the tool of spreading your investments across asset classes and financial instruments so that your expo- sure to any one type of asset is limited. This helps lessen the volatility of your portfolio and optimise returns. PROVIDES CONSISTENCY IN RETURNS Equity as an asset class is volatile. So, just investing in equity cannot give you con- sistent returns on your investment. Safe assets like fixed income come with lower returns. But if you invest in different asset classes, the chances of getting higher and consistent return increases. PROVIDES HIGHER LIQUIDITY Some asset classes have lower liquidity even if they are secure. Therefore, you will be stuck if you attempt to cash in on these during an emergency. Portfolio diver- sification helps you combine such assets with a few liquid ones, enabling you to access cash fast whenever you need it. REDUCES PORTFOLIO RISK Different asset class perform differently in varied market conditions. One of the big- gest mistakes investors make is that they are too heavily invested in one asset class. The best thing in such a scenario is to diversify. TAP OPPORTUNITIES FROM DIFFERENT SECTORS With portfolio diversification, you invest in a variety of different sectors. It is difficult to predict when one of these sectors will start to perform remarkably well and pro- vide you with big profits. 7 IPRU Insights

Tax Corner How to calculate capital gains in MFs? BALWANT JAIN A s an investor, it is important to understand OTHER THAN EQUITY SCHEMES how profits on sale or redemption of mutual fund investments are taxed. This is because This category includes all the other schemes which do not the applicable tax rate is different depend- satisfy the test of an equity oriented scheme. These in- ing on your holding period and type of mu- clude debt mutual fund, gold/silver schemes, schemes of tual fund schemes you have invested in. These provisions foreign mutual funds as well as schemes of Indian mutual apply to mutual funds units bought from the fund house funds investing in shares listed on overseas exchanges as well as all ETFs (Exchange Traded Funds) bought and either directly or indirectly through feeder funds. Here, sold on stock exchanges. Let us understand how capital for an investment to be classified as long term, the hold- gains are computed: ing period should be more than 36 months. Any profits made on such investments are taxed at a flat rate of 20% EQUITY ORIENTED SCHEMES after applying the cost inflation index to your actual cost of acquisition. In case the investments are sold within 36 An equity oriented mutual fund scheme predominantly months, the profits are short term capital gains and are invests in equities listed on the Indian exchanges. As per treated like your regular income. Such short term capital the SEBI Regulations, an equity mutual fund scheme must gains are taxed at the slab rate applicable to you. invest at least 65% of the scheme’s assets in equities and equity related instruments. In case of Fund of Funds (FoF), COMPUTING CAPITAL GAINS an equity-oriented FoF has to maintain a minimum of 90% of the scheme’s assets in funds which too invest 90% of In case of lumpsum/one-time investment, capital gains its assets in Indian listed equities. computation is fairly simple as the holding period starts Any equity oriented investment held for more than 12 from the date of purchase and the cost is the NAV of the months is classified as long term. The profits made on scheme on the date of purchase. However, if the invest- such investments are taxed as long term capital gains at ment is made over period through SIP or STP or through a flat rate of 10% after the initial Rs. 1 lakh of long term irregular investments, you have to follow the FIFO (first in, capital gains of listed shares and equity oriented schemes first out) method. This implies that the units bought earli- taken together in one financial year. The initial one lakh est is deemed to have been redeemed first and holding of such long term capital gains is taxed at zero rate, ef- period and cost of purchase is ascertained accordingly. In fectively making them tax-free. Please note no indexation case you have more than one folio, the computation will benefit is available while computing the long term capital be made with respect to each of the folio separately. gains for equity oriented schemes. For investments in equity schemes made prior to 1st Feb- On the other hand, if the holding period is less than 12 ruary 2018, the cost of acquisition of such units will be months, the gains are taxed as short term capital gains at the NAV (Net Asset Value) of the scheme as on 31st Janu- a flat rate of 15%. ary 2018 for computing long term capital gains. The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC. IPRU Insights 8

Tax Corner EXEMPTION AND REBATES able in respect of short term capital gains tax under the income tax laws. In case you earn long term capital gains on any mutual In case your net taxable income (including one lakh of fund schemes, you can claim exemption from payment of long term capital gains on equity products on which no tax tax on such long term capital gains if you invest the sale is payable) does not exceed Rs.5 lakhs, you are eligible to proceeds to buy a residential house property within pre- claim a tax rebate of upto Rs. 12,500/- under Section 87A scribed time period and subject to compliance of certain against all your tax liability except the long term capital conditions. Please note that there is no exemption avail- gains on equity oriented schemes and listed shares. The author is tax and investment expert and can be reached at [email protected] and @jainbalwant on twitter The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC. Quiz ARE YOU READY TO TEST YOUR SELF Q1. Target maturity fund is a type of index fund Q7. A mutual fund is required to be registered with the a True capital market regulator before it can collect funds from b False the investors. a True Q2. The NAV of each scheme needs to be updated on b False AMFI’s website every month a True Q8. In India, a mutual fund is set up in the form of a pri- b False vate limited company a True Q3. Interest rate has nothing to do with a long-term debt b False mutual fund scheme a True Q9. The higher net worth of a sponsor go not guarantee b False for better performance of schemes a True Q4. There is a maximum investment limit in equity linked b False saving schemes for an individual investor a True Q10. A mutual fund scheme can invest up to 30 per cent b False of its assets in unlisted companies a True Q5. In Year 1956, Government allowed public sector b False banks and institutions to set up mutual funds? a True b False Q6. An index funds is not managed by a fund manager a True b False 9 IPRU Insights

Guest Column Why you need a multi-asset portfolio AARATI KRISHNAN Ever since we decided to manage our fi- average gold exchange traded fund in the same 10-year nances separately, I and my husband rarely period managed close to a 5 per cent CAGR. The average have any money-related arguments. But the gilt fund investing in the 10-year g-sec (constant maturity) recent long Pongal holiday was an excep- managed over 8.5 per cent. tion. As we idled and ate Sakkarai Pongal Prima facie, this would seem to prove the argument that and discussed investing, we got into a heated debate an equity-only portfolio can outpace all others if you give about the best portfolio structure for a 21-year-old. it sufficient time. But for the investor who actually owned My husband, an ardent believer in the power of equities, that 100 per cent equity portfolio, the journey to that 12 was convinced that anyone in her twenties ought to go per cent return would not have been easy. whole-hog on equities. He vehemently (and convincingly) First, to get to that point-to-point CAGR of 12 per cent, that argued for a 100 per cent equity portfolio for young folks investor would have had to invest in the Nifty50 in Janu- because, if these youngsters are saving for their long-term ary 2013, when equities were coming off a 5-year spell of goals that would come up 10 years later, what asset can sub-par returns, with memories of the 2008 crash fresh in deliver better returns than equities? Even if the Nifty gives the minds of investors. Two, in the ten calendar years from you a 10 per cent CAGR for the next decade he pointed out, 2013 to 2023, the investor would have had to stay invest- why would you allocate to a debt fund or a FD giving you a ed through 4 years (2015, 2016, 2018 and 2022), when lower 7 or 8 per cent? the index fund struggled even to get to a 6 per cent. Three, Being a staunch believer in asset allocation though, I to come this far, the investor should also have had the un- couldn’t agree with this view. Given the uncertainty about shaken conviction to stay invested fully in equities, when equities getting to a 10 per cent CAGR, why not allocate the index crashed 37 per cent in a matter of four months some money, when market yields were attractive, to debt between December 2019 and March 2020. That’s when investments that could deliver predictable compounding the first wave of Covid was sweeping the world, govern- at 7 or 8 per cent? What if the world economy sinks into ments were imposing lock-downs and there was pervasive a prolonged recession, wouldn’t gold be a good hedge fear of the loss of lives and livelihoods across the world. against a crumbling stock market? As is usual with argu- It would be quite difficult for any twenty-year old investing ments with one’s better half, we didn’t get to any conclu- in equities for the first time, not to have panicked at these sion. We parted with a bet on where the Nifty would be 10 events and to have held on to earn the 12 per cent CAGR years hence. that came after this hair-raising journey. I may lose this bet. But this Pongal interlude got me think- For investors looking at an equity-only portfolio today, the ing more seriously about why anyone belonging to any age- challenges ahead may be much more severe. The global group, would need a multi-asset portfolio. The answer really zero rate and easy money policies that were so supportive lies in how different assets generate returns over time and of stock markets in the last decade, are now behind us. how their behaviour affects our own investment journey. For investors who enter markets today, the starting valua- tions on the Nifty50, at over 21 times are high compared Equities to long-term averages and geo-political tensions and rising If you use a Nifty50 index fund as a simple proxy for Indi- macro risks around the world are contributing to higher an stock market performance and refer to Value Research equity market volatility too. All this makes it quite difficult for returns, you find that, as of January 24 2023, a Nifty50 to assert that equities in the next ten years, will match index fund has delivered about a 12 per cent CAGR over their performance of the past decade. the previous ten years. That double-digit return would not have beaten inflation quite handsomely, it would have out- Debt performed other asset classes such as debt and gold. The Let’s take stock of how an investor with a 100 per cent 10 IPRU Insights

Guest Column debt portfolio would have fared. The 10-year government year basis, gold has made a positive return for Indian in- security is the benchmark for market investments in In- vestors in 6 of the last 10 years. dian debt. Being a central government backed instrument, Gold enjoys a couple of tailwinds when things turn dicey funds that invest in this security also carry minimal credit for other assets. During period of high inflation, which are risk. So let’s take the return record of the largest 10-year usually negative for both equities and debt, gold tends to constant maturity debt fund in the past decade. be favoured as a hard asset that serves as a better store Now, Value Research data tells us that this fund (as on of value than ‘paper’ money. For Indian investors, gold January 24 2023) managed a very respectable CAGR of returns get propped up every time the Rupee depreciates about 8.5 per cent. If that looks like a pretty good deal against the dollar. Gold has therefore tended to perform from a fund that invests only in ‘safe’, government-backed well in India during periods of global turmoil when foreign bonds, the investor in this fund has suffered through investors are busy pulling out of both debt and equities in quite a few ups and downs too. In the years from 2013 to emerging markets. 2020, the investor in the 10-year g-sec fund had a good This goes to show that while a gold-only portfolio would ride because interest rates in the economy were heading have left investors with a poor return in the long run, hav- mostly South. (When rates fall, bond prices rise, helping ing some gold allocation can help them tide over the most NAVs of long-dated gilts). fearful periods for financial markets, with a better return But as interest rates reversed gear from mid-2020 and outcome. began to rise, returns on this fund began to suffer. After The above data-based analysis tells us why asset alloca- managing annual returns of 10 to 12 per cent between tion has such as important role to play in our long-term 2018 and 2020, the returns on this fund would have wealth creation plans. If equity exposure gives us a shot at dwindled to the 2-3 per cent range in 2021 and 2022. high returns in the long run, a debt component contributes During its bad spell (March to June 2022 quarter), for in- to steady compounding during corrective phases in the stance, the NAV of this fund fell by over 3 per cent, some- equity market. A limited allocation to gold acts as a safety thing you would usually not expect from a debt fund. That net for your portfolio when both equities and debt are in was on account of duration risks impacting gilt prices as the midst of big turbulence. market rates spiked. In the analysis above, we’ve discovered the different roles Now, investors who chose a debt-only portfolio and sold all played in one’s portfolio by just three major asset classes. their equity exposures at the beginning of the pandemic But one can imagine room for many more. Within debt, would have had good reason to kick themselves, because liquid or money market funds can act as a temporary equity funds thoroughly trounced debt funds between and safe parking ground for your cash, when you switch 2020 and 2023. But with the yield on 10-year g-secs now between equity, debt and gold, while rebalancing your at nearly 7.4 per cent, the next few years could prove bet- portfolio. Similarly, investors seeking regular cash flows ter for debt investors than the last three years. from debt may like to park a part of their debt allocation in accrual-based products such as corporate bond funds or Gold credit risk funds (if one has the risk appetite), or plain old Despite its reputation as a safe haven, gold hasn’t done small savings schemes and bank FDs. Real estate can act much over the last decade, including the pandemic period as a good inflation hedge, with not just property prices but (when one would have expected investors to rush to safe also rental income usually rising in step with inflation. havens). But the modest CAGR on gold hides some spells So, even if we believe that long-term wealth creation is of really good performance. In 2019 and 2020, which our only goal (in real life, most folks have multiple finan- were pretty bad years for the economy, gold managed a cial goals over varied time horizons), there are many ways 23 and 26 per cent gain, supporting investors through a to bell the cat. Relying on multiple assets, while fully un- period of high uncertainty. Gold has also delivered about a derstanding their risk-return characteristics may not just 15 per cent return to Indian investors in the past one year, get you to your goal but also help you with a smoother a tough period for both equities and debt. On a calendar- journey while you are at it. The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC. IPRU Insights 11

Storyboard Why Diversification Is Necessary Rajesh and Sahil are You look very happy, I have invested all my savings in an discussing investments. Rajesh. What’s so special? equity fund and it is steadily rising. Rajesh is jubilant. The market is buoyant and I can foresee good profits ahead. What? You invested in a single Obviously not! Why That’s not diversification, Rajesh. fund? You did not diversify your should I when I am Diversification means you diversify into investments? That’s very risky. getting a good return? different asset classes, such as equity, debt and so on, according to your risk profile. Different asset classes behave differently in This can help that the loss from Oh! I never realised this. Thanks different market scenarios. one asset class to be duly set off Sahil. I will immediately diversify By diversifying your mutual fund by the other during volatility. my investments. investments into equity and debt, you will be able to manage market volatility. This is just for illustration purpose IPRU Insights 12

Parenting & Money How to teach your child the value of money? LISA PALLAVI BARBORA A 12-year-old boy was sent by his grandmother to the gro- When children see their parents producing all this ‘stuff’, with ease, cery store located on the ground floor of her apartment it’s hard for them to grasp the idea that ‘stuff’ costs money and building, to buy 250 gms of walnuts. Despite being money is not a free commodity; there is a logical sequence of work- aware of the running monthly credit system she had ing, earning, saving and spending behind how money grows. with the store, he paid for the walnuts with his pocket money. The next day, he went to the store again to get his daily quota of How to help your child value money? vacation junk food; this time he had identified a new flavour of It’s not just good that your child learns the value of money early in crisps. However, his mother realized that instead of the new flavour life, it’s critical. The objective is to help them make independent he had returned with his regular junk menu pack of crisps. On being decisions about money. The starting point is letting them handle asked why, his simple response was that the new pack was double actual money, coins and currency, at an age as early as 2 or 3 the cost. That double price was a mere Rs 20. Now compare this years. This will help them understand the presence of money and with the Rs 400 odd which the child spent on walnuts. Why was he then slowly you can transition into showing them how to pay for say, okay to spend a seemingly large amount from his pocket money on a chocolate bar with some lose change. By the time they are 5-6 walnuts, while at the same time he was extremely conscious about years old, they will understand that the things they use cost money. overspending a small amount for a bag of crisps? Giving your child pocket money will surely help them develop a keen Perhaps, the former was for his grandmother and that made a dif- sense of what money is worth. Encourage them to make their own ference. Maybe, the crisps, he realized, are a whimsical purchase spending decisions. Be it books, gadgets, toys or some other indul- to begin with and didn’t deserve perhaps the original Rs 10; in his gence, let them do the ground work on cost and let them use the head, he was already spending too much. limited money they have or what they can afford to buy and what Did this 12-year-old at a young age, unknowingly, acknowledge the they need to save up for. value of money? As a parent, you have to gingerly navigate your child’s wants and demands, with the objective of ensuring that they do not get used to Are you raising materialistic children? the idea of instant gratification. When as an earning adult you seek Ever tried to get your child’s attention with their favourite chocolate this instant gratification, the result can often be a disproportion- bar or celebrated their achievement with an expensive meal at the ate reliance on debt or continued dependence on parents. This is city’s finest restaurant? This is not unusual or uncommon. However, neither a healthy nor a productive relationship with money. by doing so, you are signaling to your child that they can get a mate- Children will almost never consistently follow your verbal instruc- rial reward when they do simple things well enough. tions, but will quickly grasp the unspoken signs and signals you The next tantrum in a toy store will only be settled when you buy send out. Never saying no to expensive toys or buying them one just them what they desire or at least give them something new. In to pacify a tantrum is only sending them the signal that money can that moment when the tantrum is at the peak, the child is mak- be taken for granted and that one doesn’t have to work too hard to ing a quick choice – be quiet and get a ‘material’ gift or go empty get what they want. handed. In the bargain though, you may be depriving your child of While teaching your child about money, you must also decide where the skills required to be a prudent thinker, spender and the ability to you as a parent draw the line and start to really show them that manage money with outcomes that allow for growth. money should be valued. The content of this page does not form part of the Investor awareness initiative. IPRU Insights 13 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Travel WAYANAD: A hidden tourist gem By Arunima Hoskote The tranquil Wayanad district is located in the north east- the authorised routes of the plantations or hop on to a ern part of Kerala, “God’s own country.” This area, which bicycle, let go of your worries and let beauty take over. is tucked away in the lush Western Ghats, will shortly cel- There are numerous coffee plantations in the area as well. ebrate 40 years of having its status as a district recog- Perhaps the best way to take in the splendour is to book nised by the government. But the history of this area goes a home stay or a small resort that is located in the middle all the way back to the Neolithic period, which was 6,000 of the plantation and literally soak in your tea or coffee. years ago. Wayanad is every bit a traveller’s paradise Now, who can refuse that offer? with its fascinating history, tribes, plantations, rivers, and Wayanad is a sanctuary for hikers because it is located in beautiful settings. the ghats. There are many hiking destinations, so whether The most distinctive experience that can be had in Way- you’re a novice or an experienced hiker, you may discover anad is touring the Edakkal caves, which house engrav- a thrilling hike to suit your skill level. ings on rock from the Neolithic age. An hour-long trek on The Chembra trek is a short, four-hour hike that is well the Ambukutty Mala hill will take you to the Edakkal caves. worth the effort. The vista, the fresh air, and the green- The rock engravings depict scenes from ancient human ery reward and relax the weary body and mind. Pakshipa- life, which suddenly make the visitor feel like a tiny dot in thalam is a must-do if you’re an aspiring naturalist, an the grand scheme of things and the passage of time. experienced ornithologist, or a photographer. You pass Wayanad is home to some sprawling tea estates that through meadows, woodlands, and grasslands on this produce fantastic blends. You can go for walks through fairly challenging hike, where you can see hundreds of dif- 14 IPRU Insights

Travel ferent native and migratory bird species. lights are ignited inside of homes, the entire town is illu- The Kalladi forest trek is challenging and takes you minated by the cluster of sparkling wreaths on the wall of through cardamom forests. The Banasura trek reveals shaded area. the Kuruva island on the Kabini river. The island is only a short raft ride from the mainland and offers an experience What time to travel? you might not find elsewhere. With temperature drops of up to 10°C, the months of Wayanad has long been Kerala’s best-kept secret and only December through February are significantly colder than recently has it started to garner the adulation it so merits. the other months of the year. As a result, many visitors When planning your next vacation, try going straight into choose this time period as the ideal time to visit Wayanad. the lap of nature—head straight to Wayanad and soak In February, the weather in Wayanad is just suitable for your body, mind and senses. enjoying nature, and it is a great month to visit. It is nei- ther too hot nor too chilly. Festivals in Wayanad How to get there: Vishu: This is one of Wayanad’s most important festivals. By Road Typically, it is observed in April. According to the ancient Wayanad is well connected by road to different parts of traditional Malayalam calendar, it is the first day of the Kerala and Karnataka. The state transport busses plying New Year. “Kani- Kanal” is the name of the event’s pri- to Wayanad are available from Bangalore, Kochi, Chennai mary celebration. They prepare a particular dish called and Trivandrum. kani using Konna flowers, coconuts, fruits, and cereals. To By Rail prepare it, they place all of things in a sizable pot and set Due to the hilly terrain, Wayanad is not very well connect- a mirror and a decorated idol of Lord Krishna in front of it. ed by trains. The nearest railway station is at Kozhikode. A The head of the home gets a glimpse of the Kani early in number of trains connect Kozhikode with major towns and the morning on the auspicious Vishu, and then his family cities on a regular basis. Taxis and buses are available at members follow him one by one. To see the Kani, children the station to travel to Wayanad. are carried while wearing blindfolds. The family’s elders By Air bless the teenagers as they give them money. Calicut International Airport, located around 65 km away, Karthigai: It is a festival that is joyfully observed in Ma- is the nearest airport to Wayanad. One can find direct or layali homes. Each household holds a fiery torch made of stopover flights to Calicut from different parts of Kerala palm leaves at the bonfire of leftovers assembled by the and various parts of India. Local taxis can be hired to temples tucked away in remote communities. As lubricate travel to Wayanad. The content of this page does not form part of the Investor awareness initiative. IPRU Insights 15 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Recipe PEAS, PURPLE YAM AND POTATO PATTICE RECIPE (Vatana, Kand and Bateta Pattice) By Darshini Bhuta Servings: 10 INGREDIENTS This Pattice is a winter speciality. It is an irresistible recipe • 1.5 cups shelled peas that your kids & everyone will relish every bite of it. The pat- • 4 cups potatoes, boiled and mashed tice has an amazing texture which is crispy from out and • 4 cups purple yam, steamed and grated succulent from within. You can serve it with green chutney • 5-6 green chilies and it will be a real winner. You can deep fry the pattice or • 1 inch ginger shallow fry it. In the below recipe, I have shallow fried it. • 5-6 green garlic shoots, whites and greens • 4 tablespoons paneer, grated METHOD • 1/3 cup grated coconut, fresh 1. Coarsely grind the peas in a chopper or a food proces- • 1 cup coriander, finely chopped sor or a manual grinder. Take care that the peas remain • 1 tablespoon sesame seeds very coarse. • 1/2 teaspoon garam masala 2. Remove the peas and coarsely grind 2 green chillies, • 10-12 tablespoons corn flour ginger and all of the green garlic. • Salt to taste 3. Place a non-stick or heavy bottom on gentle heat. Add • 3 tablespoons oil for shallow fry 3 tablespoons of oil to it. Once the oil heats up add the sesame seeds. yam. Mix it well to a pretty smooth and homogenous mixture 4. Once the sesame seeds begin to splutter add the ground green chili, ginger and garlic mixture and saute; for 8. Once we have prepped up the ingredients for all both a minute. 5. Add the ground peas and cook them for 5-7 minutes on layers, we can now begin building the layered balls. very gentle heat. Add the garam masala and salt. Cook for a minute and turn off the heat. 9. Mix the potato and purple yam mixture 6. Once the mixture has come to a room temperature add the grated coconut, grated paneer, chopped coriander 10. Roll the peas mixture in even sized balls. 7. Now for the purple yam and potato layer. Add salt and paste of 1 green chili to the steamed and grated purple 11. Place the peas ball over the purple yam and potato disc and shape it in a ball so the that purple yam layer completely seals the peas ball. Shape it in a smooth ball/ flat pattice shape. Now you have the two layers ready. 12. Smoothen the edges of the ball. Dust it with a thin layer of corn flour. 13. In a deep sauce pan heat enough oil to shallow fry the pattice 14. Serve the pattice with green chutney Recipe is inspired by BetterButter.in website The content of this page does not form part of the Investor awareness initiative. IPRU Insights 16 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Fitness Healthy habits to incorporate in 2023 By Juhi Kapoor New year, new you! What better time to change your life by a 360 complete angle? While it’s always a good time to consider involving new and positive habits, why not start now! In this article, we are going to tell you 10 good habits, no, correction, 10 healthy habits that you need to kickstart your 2023 and end it on a healthy note all the way through. 1. Drink loads of water: There’s a reason we are starting alarm, call a friend and tell’em to remind, or just post a our list with it. In these extra cold winters, you may be sticky note. Try drinking water regularly and frequently for forgetting to hydrate. We don’t care how you do it, set an glowing skin and pure body. 2. Sleep on time: Late birds get no worms. Or the idiom goes a lot like this! Not only is it important that you sleep 8 hours a day, it’s important that you sleep on time because Melatonin is produced more naturally in the dark hours and the stress hormones (the good ones, the good ones, don’t worry!) are at their peak in the morning hours. This means those who sleep in the morning get a night of poor quality sleep. This also means that sleeping early means more rest, more freshness, and better, more you. The content of this page does not form part of the Investor awareness initiative. IPRU Insights 17 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Fitness 7. Meditate: If you don’t already, this might be the year that you start meditating. Make it so! 15 minutes a day can help with anxiety and you can slowly build it up to an hour. Plus, early morning meditation from 4 AM to 5 AM has been known to be transformative spiritually as well as health-ually. We know that’s not a word, but the word around town is the advantages are real. 3. Watch your food: No, seriously, be conscious of what 8. Journal: All the other items on the list work on your you eat because it has long-term repercussions on our body, this one and meditating together work on your bodies. Choose to eat fresh and healthy meals, with mental health. After all, mental health is an important occassional cheat meals, but do it to worship the body part of holistic health. Maintain a diary and try to write it you have. off to completion by the end of the year. This will help you keep a tab on your goals, thoughts, progress, feelings, 4. Sit straight: You sit at work, you sit on the bus, you and more. sit at lunch, and you sit in the comfort of your home at evenings. Too much sitting! The least we could learn to 9. Get outside: The last couple of years took away our do is sit in the right posture with our spine and shoulders freedom and now that we can go out, make it a point that straight. This will not only help you avoid creases on your you do. Socialize or just take a walk in a forest, the best neck and shoulder cramps, it will also keep you more way to live is to live in the moment in the present and focused. Every time you find yourself getting lousy and make the most of the present, outside of your home. dropping, call yourself out. 5. Limit screen time: We’re all guilty, the phone does take a 10. Don’t be too strict: Some days you’ll slip, and that’s lot of our time and in return it interferes with our sleep, our fine, you’re human. Be easy and start again the next day. lives, and our brains. Start by reducing 1 hour every day. 6. Indulge in light workout or yoga: Now, you don’t have to run the marathon just yet or swim an ocean of sweat. Try something light. Yoga is known to be easy-going and beneficial for the mind just as much as it for your shape. 18 IPRU Insights

Book Review “Atomic Habits” Author: James Clear Review by Ashutosh Ranjan A WAY TO BUILD GOOD HABITS AND BREAK BAD ONES “Old habit die hard” this age-old adage essentially refers to a habit or rather a behaviour that becomes a trait that people do not like to let go off. The reasons could be many – they are comfortable in their habits, and breaking them would make them uncomfortable as it would take them out of their comfort zone. As far as forming good habits go, there are many motivational books and literature that one can look up to for guidance. But Atomic Habits by James Clear stands out among all others. Clear, who happens to be one of the world’s leading experts on habit formation, reveals practical strategies in Atomic Habits, right from forming the good habits to breaking the bad ones, and mostly, on mastering the tiny behaviours that lead to changes in the long run. What sets it apart from many other numerous books written on the subject is the actionable points laid out as dos and don’ts that go into making good habits, while discarding the redundant. Direct actionable advice has the potential to create that much impact on the mind of the reader towards breaking old and bad habits and creating or adopting the new ones. Another aspect that makes it a pleasure to read is the book’s informal tone – which makes it seem almost like you are reading a note by your friend or brother rather than a research paper by an academic. This makes reading that much more comforting and enjoyable and makes the books an absolute page-turner. One of the most important advice Clear has for his readers is on the importance of strengthening the foundations of one’s life in order to achieve his/her final goals. It is these small habits and behaviours that we pick up and develop and maintain throughout our lives that essentially makes us into who we are. But habits cannot be developed overnight. Things become a habit when it becomes a part of one’s daily life or routine, and that comes into play only when it is repeated time and again, daily, and for years on end. That brings about the change in our habits. Atomic Habits can be best used as a guide to help the reader develop good habits. But the onus to develop such habits lies with each individual. A book can be a guide at best. The change to develop habits has to come from within. Merely reading a book without putting into practice your own efforts towards creating habits will not bring about any change or create any habit. But if you are sincere about bringing in a positive change in your habits and way towards life, then you should probably give Atomic Habits a read. The content of this page does not form part of the Investor awareness initiative. IPRU Insights 19 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Movie Review AVATAR : THE WAY OF WATER Cast – Sam Worthington, Zoe Saldaña, Sigourney Weaver, Stephen Lang and Kate Winslet Rating – 3.5 out of 5 stars Emotions – Fiction, Fantasy Avatar: The Way of Water is a 2022 American epic science Technically, Avatar-The Way of Water is outstanding. Right fiction film directed and produced by James Cameron, who from VFX to graphics work everything looks captivating. co-wrote the screenplay with Rick Jaffa and Amanda Silver The 3D effects are stunning and they are not just for from a story the trio wrote with Josh Friedman and Shane the sack of publicity. Each 3D shot has proper research Salerno, distributed by 20th Century Studios. The sequel and reason. The Pandora world created is just amazing to Avatar (2009), it serves as the second installment in and is presented superbly deep underwater. Technical the Avatar film series. Sam Worthington, Zoe Saldaña, brilliance is visible in each and every shot throughout the Stephen Lang, Joel David Moore, CCH Pounder, Giovanni film. The background score composed by Simon Franglen Ribisi, Dileep Rao and Matt Gerald reprise the characters is arresting and elevates the mood of the film nicely. The from the original film, with Sigourney Weaver returning in photography work by Russell Carpenter is nice. His work an additional role and new cast members including Kate registers despite the film having more graphics. Winslet, Cliff Curtis, Edie Falco and Jemaine Clement. In the film, Na’vi Jake Sully (Worthington) and his family, The underlying theme of the film that showcases parents under renewed human threat, seek refuge with the protecting their children and vice versa is conveyed Metkayina clan of Pandora. beautifully during the ending portions. On the flip side, the main drawbacks of the film are the thin storyline and Sixteen years after the Na’vi repelled the RDA invasion lengthy runtime. All in all, Avatar: The Way of Water is an of Pandora, Jake Sully lives as chief of the Omatikaya undeniable technical achievement with its epic score, jaw- clan, and raises a family with Neytiri, which includes sons dropping scale & breathtaking visuals. Neteyam and Lo’ak, daughter Tuk, and adopted children Kiri (born from Grace Augustine’s inert avatar) and Spider, the Pandora-born human son of the late Colonel Miles Quaritch. To the Na’vi’s dismay, the RDA returns to colonize Pandora, as Earth is dying. Among the new arrivals are Recombinants—Na’vi avatars implanted with deceased human soldiers’ memories—with Quaritch’s recombinant serving as the leader. The first 2 hours are full of character development. Almost every age of characters were developed. But the Giant whale named Payakan is the most super character in chapter 2. Storytelling is long so you may feel impatient and boring but James cameron keeps distracting you with beautiful scenes. Whether its a pandora, or rain scene or underwater(Which looks like another new world) were mesmerizing. The content of this page does not form part of the Investor awareness initiative. IPRU Insights 20 The views expressed in this article are solely of the author and do not reflect the views of ICICI Prudential AMC.

Word Play Time to train your brain Find the terms from the below word jumble: SSERCEION HLEWAT ZMORIONATIAT ROSTEVIN COMIEN DEIONPRECIAT ESTINTER ATIONSIFICDIVER ITYQUE PPREATACIE Take a picture of the solved crossword, and mail it to [email protected] to win a prize! You could also write to find out the correct answer The winners of this word search will receive a copy of an interesting bestseller! 21 IPRU Insights

Disclaimer KNOW YOUR CUSTOMER (KYC) To invest in Mutual Funds, you will need to complete your Know Your Customer (KYC) requirements. You can do so by visiting any AMC branch or nearest Point of Service and submitting the completed KYC Form along with all the required self-attested documents. Individual investors would be required to submit the following documents – • A recent passport sized Photograph • A Proof of identity – A copy of your PAN card • A Proof of Address – A copy of your Voter ID card, Passport or Driving License If you are already KYC Verified and would like to update any of your information, you can submit a completed KYC Details Change Form with the required self-attested documents at your nearest AMC branch or Point of Service. SEBI REGISTERED MUTUAL FUNDS We advise investors to make informed decisions and are cautioned to invest only with SEBI registered Mutual Funds. List of Registered Mutual Funds is available at https://www.sebi.gov.in/intermediaries.html COMPLAINT REDRESSAL For any queries, complaints & grievance redressal you can reach out to us at [email protected] or call us on 1800222999. If you are unsatisfied with the resolution or wish to escalate the matter, you may write to Investor Service Officer at [email protected]. For this purpose, Mr. Rajen Kotak is the Investor Relations Officer of the Mutual Fund. He can be contacted at 2nd Floor, Block B-2, Nirlon Knowledge Park, Western Express Highway, Goregaon (East), Mumbai – 400 063. Tel No.:022-2685 2000, FAX No.: 022 -2686 8313. In case the investor is not satisfied with the resolution given by AMC, he can approach SEBI by registering his complaint on SCORES (SEBI Complaints Redress System) through https://scores.gov.in/scores/Welcome.html Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 22 IPRU Insights