Tarakki Times English October 2018

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWSProfessional Views MUMBAI | OCTOBER 2018 | PAGES 13Pg. 3 Nimesh Shah elected as AMFI chairmanDebt + multi-assetfund + STP will bea good combinationover next two years S Naren, ED & CIO ICICI Prudential Mutual FundPg. 4Top 5 managers of multi capmutual funds in 2018Pg. 5Returns on debtfunds decoded Nimesh Shah, MD & CEO Economictimes.com | October 16, 2018 ICICI Prudential Mutual Fund Nimesh Shah Shah joined mutual fund industry transparency and disclosures Tarakki Talk Series MD & CEO in July 2007 having being besides sticking to basics. ThisPg. 6 ICICI Prudential Mutual Fund appointed as MD & CEO of ICICI has helped the company toTarakki Talk Prudential AMC. As on establish itself as a credible andGajendra Kothari Nimesh Shah , MD & CEO of ICICI September end, ICICI Prudential trust worthy brand. Prudential Asset Management manages assets worth 3,10,257Managing Director Company, was on Friday elected crores. ICICI Pru AMC is the For his remarkable contribution,Etica Wealth Management Pvt Ltd the chairperson of the fund largest AMC on the basis of Shah was conferred with the industry trade body AMFI. assets under management. India Asset Management CEO of Tarakki Insights Kailash Kulkarni, CEO, L&T the Year – 2014 by Asia AssetPg. 7 Mutual Fund continues to be the The company has achieved Management. Recently, GlobalHow to Sell without Selling Vice Chairperson. As per AMFI leadership position in the Indian Banking & Finance reviewShweta Jain data, the Indian mutual fund Mutual Fund industry in his honored him with the Best Asset industry manages nearly 21 lakh tenure. His focus has been Management CEO India – 2017.Founder & CEO crore of assets (Average AUM always on being investor-centric,Investography Pvt. Ltd. July-Sept 2018) maintaining high levels of Tarakki Corner Risk return wise, debt is a good asset class for next three yearsPg. 8Kishan Jakhotia The Economic Times | September 24, 2018Director, ReliaBull Wealth Equity markets can change high modes. It was not but debt markets are the same.Managers Pvt Ltd because of sentiments, debt aggressive at all and sometimes market is always logical, Nimesh we joke that are we talking about Given that there was a tran- Fund Review Shah, MD & CEO, ICICI Pru AMC , the same markets? Are my equity saction which happened at tells ET Now. fund managers and debt fund 11% plus, the fear in the marketPg. 9 managers operating in the same is that the liquidity crunch isICICI Prudential Technology What happened on Friday? country? Equity markets can around the corner and thereFund review: change because of sentiments, could be redemptionCould be the best bet given It was business as usual. We debt market is always logical. pressures. There could berupee weakness managed `3 lakh crores of liquidity crisis for the system money, out of which half was Debt market always saw that oil per se. Is it all hogwash?Pg. 10 equity and half debt. If you see prices are going up. If oil pricesICICI Prudential Bluechip Fund objectively, nothing new are going up, interest rates are A particular transaction has been happened on Friday as far as going to go up etc. The whole blown out of proportion. We doPg. 11 debt market is concerned. There thing is always priced in not know what was the back-List of ICICI Prudential Funds were swings in the equity beautifully in the debt markets. ground in which that particularin Mint markets of certain scrip. transaction happened, maybe One has to always look at debt that particular fund, not the fundSIP Top UP Nothing has changed in the debt markets. Our view on equities house, that particular fund had to market because debt market has also change with what are the build in liquidity, I do not knowPg. 12 always been logical. We macros of the country and what what is the contours of that fund.ETW Funds 100 compare the equity markets and do we expect in debt markets. I People are getting too much intoSystematic Investment Plans the debt markets. In the NBFC do not think anything changed in one particular transaction. space or any other space, equity the debt markets. There was a lotPg. 13 markets were going into all-time of action in the equity markets First, people are questioning theList of ICICI Prudential Fundsin Star Track Mutual Fund

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.2 TARAKKI TIMES, OCTOBER 2018 Interviewcompany under which that book ratios of those companies talk so much about equity? A risk fund with a lower YTM than atransaction happened. You all can get corrected. mutual fund is not only equity, a higher YTM because the incre-have talked to that particular very important asset class in mental risk is lesser.fund house also and they have One can look at smallcaps after mutual funds is debt. And thiscome on online and clarified that the corrections have happened year for us is promoting retail to Because in debt you lose thethis is an isolated transaction. and that also only through a SIP get into debt mutual funds big entire...They were building up liquidity or route. We still believe that way. In the future, Rs 110 lakhwhatever they have been doing largecaps are better risk return crore of bank deposits are There are lots of ways of struc-or were trying to see the right wise vis-à-vis midcap and possible. As the economy turing. Even if you see theside of the interest rate curve. smallcaps. In a rising interest rate develops, the depositor will instrument, if you only look at the scenario, midcaps are more become an investor. YTM and look at the quality ofAs a fund house -- because affected with the increase in papers, there are various AAAs inSeptember 30th is approaching - interest costs than largecaps are Mutual Funds Sahin Hai, Mutual this country. They are priced- and I was talking to a lot of because a lot of largecaps do not Funds Sahin Hai, is going to differently. Why is it so? Thepeople in the weekend. The inter borrow to that extent but continue over a period of time so different AAAs in this country arefinancial services was working. midcaps essentially borrow. We the product is becoming better priced differently and the marketThis whole week, people are have to see the scenario, we by the day. The way it is prices them differently becausesufficiently liquid because have see the oil prices, we have regulated, we have got a brilliant the perception of risk is differentSeptember 30th is approaching. to see what the expectation on regulator which has been quite for them.On September 30th, a lot of AUM interest rates are. proactive and ahead of the curve.anyway goes away. So we are The product is getting better and It is not fully priced in. It is a veryprepared for that liquidity We believe interest rates can go better for the final investor. interesting journey as we doscenario. up in this country and that is why I more and more debt talk. The am more liquid. I do not want to I believe there will be a huge whole ICICI Prudential marketsAlso next week, the credit policy run for long durations in most of uptake and we are working very are at 37,000. We are focussedis expected where people expect my funds. We have a very lower hard for uptake on the debt side on promoting debt as a categorya certain movement of interest band of the duration and so we in mutual funds which is risk within mutual funds. We haverates because of which also are that much more liquid today adjusted. If I take the analogy of made dynamic asset allocationpeople have not invested because we do not have a cricket, you don’t always go for or balanced advantage as abecause we believe a lot of positive view on interest rates. fours and sixes, there are lot of category. We want to makepeople will remove money even Our view on equity market is also times when singles are okay. If credit risk and Rs 110 lakh croreon that day. We are fully prepared linked to our view on the you are getting on a risk adjusted of bank deposits which isin case people feel uncertain and macroeconomics. While we basis 8%, 8% plus, 9% on the available which will slowly getwant to remove money. expect interest rates to go up this debt side over the next three into mutual fund space so that is year, oil prices are already years, then why won’t you be on where we are focussed on as aI have been talking to various uncomfortably high and there is the debt side rather than taking company.peers in the industry and people political uncertainty as well with these four uncertainties that Iare extremely comfortable on the US still to react. These four talked to you on the equity side? I always say at that debt talk isthe liquidity angle., What people factors put together we should not dead talk. It may soundexpected to happen on be conservative. We believe risk We had promoted the hybrid very boring but that is what ISeptember 30th and October 6th return wise, debt is a good asset funds in a big way. The balanced always say. Do you think in onewould have happened on Friday class to be for the next three advantage now has become a year, FDs will start competingor this week. People are pre- years. category. Similarly, I believe that with mutual funds?poning it by four days, that is all. we will promote debt. The way Last time when this scenario we have made this into a If somebody wants a fixed returnWhat could crush the debt happened, we had a chat and category, we are very clear that and an assured return, then FD ismarkets? The sense that I have you came out and said buy my retail investors can invest in the best instrument. It isgot from you and from mid and smallcap funds. We credit risk funds. They are promising to pay you something.everyone else was that let us had this chat and that was a worded appropriately by Sebi We are market driven animals.not talk about Friday, what good call in 2013 but the now. It is called credit risk funds. We believe that there is a taxhappened on Friday was not an difference now is that while oil advantage if you hold on for threeaccident but was an isolated is costlier and interest rates are A huge education is going on years and I would recommendcase. Whether it is the IL&FS moving higher, mid and among mutual fund investors come into debt funds only if youissue or it is something smallcap stocks are expensive, from our side. People have are going to hold on for threehappening to emerging market FMCG stocks are expensive, started understanding YTM. years. Otherwise, there is nocurrencies -- can that crush the cyclicals have seen a run up. Higher YTM is supposed to be need to come into credit riskbond market? Frankly. for an equity investor good. I always say that take a funds as a category. Then short- the news may be bad but credit fund where the YTM is term funds are also available.A significant portion of our valuations are not bad at all? lower. In India, the credit risk isinvestments would be in NBFCs. not always priced fully. When If you have got a horizon of threeOur view on NBFC space is that Last time in 2013, when I told you you go from below AA minus years because taxation wise, inthe equity side on the NBFCs that we should invest in midcap towards A plus the risk increases three years, net of tax the returnwas slightly overvalued. So and small caps, at that time they a lot but the yield is only 0.5%. So on debt funds is better thanmaybe in the next 15 days, there were available at a PE ratio of 4. for an incremental 0.5 or 0.75, do traditional instruments. Peoplecan be correction in the NBFC Today they are not available at a you want the risk that you are have to understand it bettervaluation space. There can be PE ratio of 4. getting on your portfolio to be because people some-wheresome corrections in equity much more than the incremental understand that mutual fund isvaluations. In a rising interest What is available cheap right return? So, incremental versus not only equity, mutual fund isenvironment if prices get now because the combination incremental return is what one also debt that we need to take tocorrected that is not abnormal. In of bad news has come together, should look at. the retail space.a leveraged business NBFC are high oil, high interest rates?leveraged business when the So in that scenario, I would be There is a viewpoint which isinterest rates go up, the price to Whenever we talk, why do we rather comfortable with a credit coming from the regulator and Contd. on page 5

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Interview 3TARAKKI TIMES, OCTOBER 2018 Debt + multi-asset fund + STP will be a good combination over next two years Economictimes.com | October 25, 2018S Naren experience as a fund house? Prudential Focused Equity export oriented sectors likeED & CIO Also, what would you tell these Fund have not fallen as much pharma and technology haveICICI Prudential Mutual Fund investors? its peers in their respective helped the portfolio. categories. Both these“The current volatility is a great We do not see any such trend schemes are toppers in their A lot uncertainties are hauntingopportunity for long term inves- playing out. SIP flows have category. What investment the market. The next year istors to accumulate units at lower been steady with the industry strategy helped you manage also going to be troublesomelevels,” says S Naren, ED & CIO, attracting `7,727 crore during this feat? because of the general election.ICICI Prudential AMC in an inter- September 2018 (source AMFI). What would be your advice toview with ET Mutual Funds.com. We believe stopping SIPs Besides long and medium term, equity mutual fund investors? because of market volatility is the investment outcome forThe market has become one step which hampers an investors across our schemes For a long term investor, marketextremely volatile since the last investor’s long term wealth during the last one year has been volatility should be considered asfew months. What is your view creation objective. good. We had a cautious stance opportunities to buy more at aon the market? on the market and chose to cheaper price. Therefore, one Do you think the current invest in stocks which are should remain invested throu-Market valuations have corr- volatility is a great opportunity reasonably valued. As a result, ghout the cycle and make theected but the global macro for investors? If so, how should we avoided sectors like NBFCs, most of the market oppor-environment over the next two they use it? which over the course of last few tunities. For those looking toyears could ensure that markets weeks witnessed sharp correc- invest into the equity market forremain volatile. So, we believe The current volatility is a great tion. Along with this, we kept the first time or is looking forover the course of this period opportunity for long term inves- away from costly names in making lumpsum investment,there will be multiple oppor- tors, to accumulate units at consumer discretionary space. such an investor can considertunities for long term investors to lower levels. It is best to make On the other hand, some of the balanced advantage, equitymake investments through staggered investments as mar- sectors which have positively savings or multi asset categorySIP/STP route. ket volatility could remain in the aided the fund performance are of funds. More importantly, near term. US Fed pausing its pharmaceuticals, power utilities, when investing one should notMany mutual fund advisors say rate hike stance and crude oil select oil stocks etc. keep away from debt funds. Ainvestors are nervous and price tapering to $60-$70 a barrel, good combination investmentcontemplating stopping their are twin factors which can put an ICICI Prudential Value Dis- would be debt + multi-assetSIPs due to the current market end to market volatility. covery Fund had topped the fund+ STP over next two years.conditions. What has been your performance chart in the last NSE Nifty 50 index has fallen by one year, six-, three- and one- 9 per cent and BSE Midcap month periods among the index has fallen by 12 per cent value-oriented funds. What is in the last one month. Most of the reason behind the strong the mutual fund schemes have performance? taken a hit, but two of your schemes ICICI Prudential Large Lower exposure to small and and Midcap Fund and ICICI midcap names and more ofBesides long and medium term, the investment outcome forinvestors across our schemes during the last one year hasbeen good. We had a cautious stance on the market andchose to invest in stocks which are reasonably valued. As aresult, we avoided sectors like NBFCs, which over the courseof last few weeks witnessed sharp correction.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.4 TARAKKI TIMES, OCTOBER 2018 InterviewTop 5 managers of multi cap mutual funds in 2018ET Wealth | September 11, 2018ET Wealth together with few years. funds that have seen such a reason for investors to exit theMorningstar India have selected visible shift in mandate, the scheme.and ranked India's best equity Has your fund manager entire track record built pre-fund managers, across cate- changed focus? viously has effectively become In such cases, it would be a goodgories, based on their five-year irrelevant. idea to treat the revamped fundrisk-adjusted returns. Here are After the recent scheme recate- as a fresh offering and allow thethe top 5 in the multi cap gorisation exercise, several By extension, the performance fund manager to build a trackcategory. These managers have funds have changed colours. of the fund manager handling the record under the revised stra-proved their mettle while dealing While some have shifted their scheme will have to be viewed tegy. Track his performancewith stock market volatility and market segment focus-from differently. The new positioning closely over the coming year.have delivered consistent large-cap to multi-cap or mid-cap may require the fund manager to This is particularly required forreturns over the years. Read to large and mid-cap, etc.-others adopt a different approach, so schemes under the newlyabout each of these managers, have altered their investing style, his past performance with the defined largecap or mid-captheir top stock and sector picks such as taking on a focused same fund may not be a suffi- categories, as they gear up forand what they think is the stance or value bias from the cient guide for his future generating alpha without somepromising theme for the next earlier diversified approach. For performance. However, this is no of the earlier flexibility. Mrinal Singh 5-Year asset weighted return Deputy CIO ICICI Prudential Mutual Fund 22.49% Age: 39 Years Average 5-year AUM Education: BE and PGDM `11,189 Cr. Experience: 14+ yearsProfile Quick TakeMrinal Singh’s value investing tilt longer periods to allow his a) On evolving market adhering to. We expect thehas often been at odds with the investments to unlock value. As market volatility to remainmarket in the past few years, yet investor sentiments have veered “Recent structural legislations elevated. On valuation basis, wehe has remained steadfast in his from one segment of the market like the Insolvency and Bank- prefer large-caps over mid- andapproach. Even as prices and to another, he has deftly re- ruptcy Code and National Com- small-caps.”investor sentiments have aligned the portfolio to capture pany Law Tribunal along withchanged rapidly, Singh has the emerging value. Singh has GST are likely to do well for the c) Promising theme for next 3-5prioritised valuation, and has maintained a strict focus on long-term health of the economy yearsbeen tightfisted. He is optimistic bottom-up stock selection, while and the industry. Also, there are “Value investing and highabout earnings growth and has taking higher deviations relative green shoots of growth in the dividend yield are the twochosen to stay invested for to the index. domestic economy, particularly investment styles we believe will in rural and investments-related serve for long-term investors Top 3 stock picks Top 3 sector bets segments.” well.”11.20% Sun Pharma Industries 15.15% Technology b) Navigating current Note: Top stocks and sectors6.36% Infosys 13.19% Healthcare environment data is for the largest fund5.79% Wipro 10.61% Consumer cyclical managed by the fund manager in “Bottom-up stock picking with the respective category. Top Funds managed adherence to superior stocks, sectors and returns management quality, strong across categories as on 31 July balance sheet and reasonable 2018. valuations are what we will be Recent structural legislations like the Insolvency and Bank-ruptcy Code and National Com-pany Law Tribunal along with GST are likely to do well for the long-term health of the economy and the industry.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Interview 5TARAKKI TIMES, OCTOBER 2018 Returns on debt funds decoded HT | October 01, 2018Nimesh Shah coupon, payable on the principal taking higher risk to show a offering higher returns. RatingMD & CEO amount). The price appreciation higher yield. Let me explain this composition of the fund (asICICI Prudential Mutual Fund in debt securities is sensitive to by an analogy. Most of us enjoy depicted in the fund’s fact sheet) movement in interest rate. When driving on the expressway. could be a fair indicator of itsMany investors are unfamiliar as interest rates increase, the credit quality. But, one must alsoto how debt funds generate prices of debt securities Just because the car is able to understand that credit rating is areturns. Corporates need to raise decrease and vice versa. Any run at a speed of 200 kmph, does matter of opinion. As is the casedebt to finance various require- debt investment is exposed to not mean that one has to drive at with opinions, there can bements such as working capital various risks, prominent ones that speed. It is common know- variation in ratings issued byand capital expenditure. These being credit risk and interest rate ledge that the probability of different rating agencies.needs can be met by borrowing risk. Credit risk is the risk of a accidents increases substan-from a bank through loan or decline in credit worthiness of tially if a vehicle is being driven at In some cases, investors may beraising resources from debt the borrower or his default and higher speed. Same is the case compromising on the securitycapital market. Debt securities interest rate risk is the change in with debt investments. In order available for the debt instru-such as commercial papers prices of the debt security on to generate higher returns on ments in return for the increase(Cps), non-convertible deben- account of the increase in investments, investors may yield available. In many cases,tures (NCDs) and bonds are interest-rates. With this in mind, invest in riskier assets (a the security available enhancesissued by corporates to raise here are the factors an investor phenomenon referred to as the credit profile of theresources from debt capital must consider prior to investing “yield chasing”), only to find that transaction.market. in a debt fund. The relationship their investments have been between rate of interest on jeopardised. In many cases, the Investors must also find out ifThe government too raises principal amount and the market incremental addition to portfolio there are significant concen-resources from debt capital price of the debt security is returns is insignificant when trations in the fund-issuer, groupmarket by issuing instruments captured by a metric called the compared to incremental risk or sector level. The way to avoidreferred to as treasury bills or yield. A higher yielding investors are exposed to. adverse impact on the fund is togovernment securities. There are investment has a potential to ensure adequate diversification.two components of debt fund generate more return, but let’s Looking at it differently, a lower To summarise, a well-run debtreturns – price appreciation and not forget it is exposed to higher yielding investment could offer fund would have investmentsrate of interest on the investment risk. better risk-adjusted returns. As diversified assets across sectors(commonly referred to as the great Warren Buffet says, the and issuers, focus will be on Many investors get attracted to a first rule of investing is don’t lose building a quality portfolio, fund offering a higher yield. It money. There is indeed a case, offering better risk adjusted should be noted that yield is not where 0.5% lesser return can returns. the all-encompassing statistic actually be more on a risk- for debt funds. Judging the adjusted basis. Investors must Nimesh Shah is the managing expected return of a credit fund try to understand how the fund director at ICICI Prudential Asset from its yield may be misleading has derived its returns. It is Management Co. Ltd as there may be a significant possible that the fund may have amount of credit risk involved. increased its investments in One should evaluate if the fund is lower credit quality papers,Risk return wise, debt is a good asset class for next three years Contd. from page 2also some very smart indivi- the things that one has to Otherwise, how does a retail three years, do you invest in theduals that Indian inves-tors are understand is that it is a prescri- distributor work? They come to midcaps now? Based on thesmart now, they should avoid ption product. Is mutual fund a our office. They have seen how analysis, you will do that becausethe distributor. More tools are prescription product or an OTC we actually manage money. We that is the only analysis peopleavailable now. Where does this product is the comparison I focus a lot on how each of our do whereas a mutual fundneed for a distributor kick in always make. products is positioned, in which distributor over the last 10 yearsbecause the direct plan gives environment which product will have on served us, they know ouryou better savings but the I believe that mutual fund is a do well, when to get into small long term performance, theydirect plan does not give you a prescription product because cap, midcap, when to get into know our thinking, they knowguidance. I always say this people need to understand and largecap etc. Otherwise, what that a one year underperfor-example that when a baby is our education to our distributors does a retail investor do? He mance say ICICI Prudentialborn, you need a paediatrician is quite regular. We try to explain goes on some sites and sorts out Discovery Fund did not do wellbefore the baby becomes an various parameters. If they can the past returns. Based on past for 1.5-2 years, a smart distri-adult. Do you think distributor add that much value, even if you returns he will go and invest. butor would have recommendedis that paediatrician you should get a lesser return because of Now that has done well in the that fund at that point of timeneed? coming through a distributor, if past. because it is available a lower PE they get a right advice, it makes ratio.85% of our business happens sense. If midcaps have given a verythrough distributors and one of good return in the last one or

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.6 TARAKKI TIMES, OCTOBER 2018 Tarakki Talk Series Tarakki Talk Morningstar | September 18, 2018 Gajendra Kothari general lack of quality with time to be patient with them will Fund AUM of `450 crores as on MBA, CFA, CAIA, ICFA advisors who did not work lead to a high conversion ratio. September 2018in just 8 years. Managing Director towards client's interest. He And his firm has offices in Etica Wealth Management organized his first Investor And as a Registered Investment Assam, Mumbai, New Delhi and Pvt Ltd Awareness Programin Jorhat, Advisor for SEBI, he is not afraid Kolkata. His mantra for business his hometown. On seeing the to talk about fees even during the growth is investing in your ownGajendra Kothari is well-known in amazing response, Gajendra initial client meeting. His business. Investing in people isthe financial advisory circles, started conducting customized suggestion to financial advisors equally important. Gajendrawith more than a decade ex- IAPs for a varied group of is that clients are willing to pay asserts that building the rightperience in both Indian and professionals and corporates. fees, but one should be clear and infrastructure and good team gooverseas capital markets. His The twin goal of investor upfront about the amount and hand in hand. With already foursuccessful career took him up to education and generation of the method. He wistful hopes for offices in operation, he hasthe rank of vice president and prospects gave him the impetus some mechanism for auto-debit started plans for expansion tohead of products in portfolio to train his staff to conduct such facilities for clients. He is a Surat, Bengaluru and many othermanagement division at UTI programs all over the country. technocrat and has made the locations in Mumbai. TheMutual Funds. He was also the Gajendra and his team have utmost use of technology for his ambience is also important as ithead of business develop- conducted more than 200 business. He aims to convert his give clients the confidence andment in the UK and European training sessions in the areas of office to 100% paperless and assurance of commitment whenmarkets for UTI International. A finance, mutual funds, insurance has even begun investing a they see an office which exudeswell-qualified and experienced etc. His team now conducts portion of his net profit annually safety and comfort. Visualizationpractitioner of investment and around ten such workshops towards the same. Since 2014, is important for inspiration.financial planning; floated his every month. he has been actively using BSEadvisory firm in 2010 called Etica Star MF and NSE MF II to So saying he has displayed aWealth management private He is also the face of the execute transactions. He was model of Rolls-Royce in his cabinlimited. 'Etica' means ethics in organization and is prominent of able to source clients and scale and is not afraid to state that thisSpanish and Portuguese, the TV and social media. Articulate up rapidly. And 100% of his client is his goal before he reaches 50DNA of the firm encompasses and enterprising, Gajendra transactions are online. along with a corpus of `100 croreEthics before everything. recommends financial advisors for his retirement by investing in to start a blog and promote the Gajendra advises IFAs to use and mutual funds!! Looking forward,A potential fund manager in the same. Brand building exercise, collaborate with technology Gajendra believes the nextmaking, Gajendra, however, client outreach methods and providers to provide the best for decade is very important for IFA.decided to take diversion when creating online personal portals clients rather than developing Being a golden period a lot ofhe came across many stories of are many ways to establish long- proprietary tools. And he is not changes as well as challengesmis-selling insurance-cum- term relationships. And for perturbed about robo advisors lay ahead combined withinvestment products as well as converting prospects to clients, and confidently believes that immense opportunities. he is eager to share his secret human touch is always required sauce. Explaining concepts, in this business. With all these understanding client and taking tools, he has built up MutualThe twin goal of investor education and generation ofprospects gave him the impetus to train his staff to conductsuch programs all over the country. Gajendra and his teamhave conducted more than 200 training sessions in theareas of personal finance, mutual funds, insurance. Data has been given to you - Published by Morningstar India.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Tarakki Insights 7TARAKKI TIMES, OCTOBER 2018 How to Sell without SellingShweta Jain We, as financial advisors, are not in here to offer what suits them best, the business of selling a mutual sometimes it may even not be recognizedFounder & CEO fund, but instead making an by them as a goal but they definitely “need”Investography Pvt. Ltd. impact into their lives. Just imagine, the next it and it is our job to ensure that they are time you reach out to your client saying, “I taking the right step forward.A Certified Financial Planner with 15 years in have something wonderful to offer to thethe financial service space across world and if they don't get their hands on it, Since we constantly interact with differentfinancial planning, research and client they will be at a huge disadvantage.” Will it clients in various stages of their lives,service. She is passionate about financial make a difference? different professions etc., we are in a muchliteracy and has been conducting Definitely, it will. better position to be able to talk about howworkshops for the last 7+ years, conducting people like them have taken decisions andover200 workshops for more than 10,000 We might not feel like a salesperson, but we how it has impacted them - these could be aindividuals and advisors for corporates like definitely sell dreams to our clients, their few years old or a few months old. OurGoogle, HP, Accenture, JP Morgan, J C dreams, their aspirations that are associated clients are certainly in for getting assuredPenney, Accenture, HPCL etc. She has also with their financial goals. But as their about the right way to go and if they can seeconducted sessions on behalf of SEBI financial advisor, I always make sure that I that the advisor is giving them an advise(Securities and Exchange Board of India). am listening to the customers' needs before without an ulterior motive, they know they offering a solution to them. The need may are in good hands.She has done courses on wealth mana- also be unsaid sometimes, but it is indeedgement and behavioral finance from IIM our job to diagnose, isn't it? We are indeedBand IIM A respectively. You can find variousarticles by her www.moneycontrol.com and Outlook Money. She is featuredand oft quoted in print(Money Today,Economic Times, Mint) and on television. Handholding Clients want to be led, not managed. the Clients Help them navigate through various life stages, goals and market cycles. Assuring Educating Clients need assurance that their investments are not unreasonably riskythe Clients the Clients Risk-reward ratio must be tilted for the benefit of the clients Mutual fund investments are tax-efficient than traditional investment avenues Traditional investment avenues may offer guaranteed but lower returns Focusing on how the money is losing its purchasing power if not invested smartlyHere is how the purchasing power of rupee is slowly decreasingWhile you could have filled your We must work with our clients to help them and building trust is the last. You don't close engine tank with 23 litres of petrol build a portfolio that they would not only be a deal with signed application forms and with ` 1,000 10 years back, it can comfortable with but also something that cheques, you close a deal every time thenow be refilled with 11 litres with the same works to address their need of ensuring client asks you to be his trusted friend,amount of money. This is how the their purchasing power throughout their advisor, the voice of reason who he knowspurchasing power of money decreases over lifetime. will always act in his best interest.time. Building credibility is the first step to selling

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.8 TARAKKI TIMES, OCTOBER 2018 Tarakki CornerYour YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY OCTOBER 2018 Kishan Jakhotia Director, ReliaBull Wealth Managers Pvt Ltd A Product Specialist!A thorough professional and well-versed in investment products, Kishan Jakhotia, began his journey into the financial services industryimmediately after his post-graduation. Being MBA in finance and marketing, Kishan was high achieving Branch Manager in a financial advisoryfirm and was soon promoted to head Institutional Treasury sales division. With a keen interest in learning, he felt the need to specialize in theproduct and acquire skills in financial advisory. He soon joined a private wealth management setup and with his continued dedication andpassion, he was able to become a product specialist.He wanted to focus on investor awareness and education. This impetus grew from the realization that in India, people generally invest ontraditional avenues like fixed deposits, real estate etc, rather in professionally investment avenues. As the business grew, he was able to bank onhis earlier connections to source clients. However he felt that to scale up a new initiative was required to reach a wider base of investors. Thiswas his first challenge. Kishan was able to create a comprehensive set of coordinated marketing and business development activities includingemail marketing, creating good content and product writing. He firmly believes in maximum reach through any method.And the second challenge was providing good research and client portfolio reporting. He was able to design a model portfolio structure whichwas most useful to the clients. And once a good technology partner was on boarded, the reporting issue was quickly sorted. Using technologyto enhance experience, cross selling efforts and even newspaper flyers, every effort was rightly timed and Kishan was able to secure goodbusiness.Presently, as on September 2018, his firm is managing Mutual Fund AUM to the tune of `80 crores Total assets under advisory includingproducts like PMS, NCD and AIF etc., are growing and has crossed `145 crores as on September 2018. The business model being followed nowinvolves two distinct focus areas namely High Net worth Individuals network creation and SIP focus for salaried professionals. The rationale forthese two niche target segments is that the rich potential risk taking ability, possibility cross sell and for future reference based marketing.To keep these segments engaged and satisfied additional free services are offered by his firm like MF review exercise and multiple reports andstudies etc. Yet, financial advisory business is tough and challenging, contends Kishan. Given this scenario the key to success is a combinationof adapting to the changing clients' needs, an effective redressal system, and developing a strong personal rapport with the client throughformal and informal exchanges. As times are tough and highly unpredictable, Kishan's advice to his clients is to use asset allocation anddiversification based according to their risk profile. A man with many ideas, Kishan Jakhotia is the one of the best guide in the volatileinvestment market.ARN-88227Location: MumbaiWebsite: www.reliabullwealth.com

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 9TARAKKI TIMES, OCTOBER 2018ICICI Prudential Technology Fund review:Could be the best bet given rupee weaknessMoney Control | September 10, 2018During bull phase, thematic funds will performwell and give strong returns. However, whenmarkets enter into bear phase and things turnbad, these funds register heavy losses.The information technology market, this sector will be able tosector has been rallying in last generate good value buys.one year, it has seen steepupward movement which helped Fund Managerto erase some of the weakness /slowdown seen in 2016-17. Ashwin Jain is managing this fund since October 2016 andThe S&P BSE IT index has gained Sankaran Naren since July 2017.28.25% so far this year and Together they even manage ICICI58.45% in last one year. This Prudential Exports and Servicesrecovery has helped erase some Fund and ICICI Prudential Growthof the pronounced weakness it Fund - Series 3.saw earlier. Ashwin Jain and Sankaran NarenICICI Prudential Technology Fund have over 9 years and 26 years ofis one of the thematic fund which experience respectively in equityseems well-poised to gain from research and fund management.recovery in the sector. Thisscheme was launched on March, Portfolio composition3, 2000. The AUM of the schemeas on July 31, 2018 is `422.29 Majority share of the assets arecrores. invested in software, technology and related stocks in theThe investment objective of the portfolio. The fund also carefullyscheme is to invest in equity and invests in companies outside theequity-related securities in the ones listed on the S&P BSEinformation technology sector. Information Technology IndexThe scheme is best fit for (benchmark) when it senses aninvestors searching for good opportunity of growth and stocksinvestment avenues in tech- available at attractive valuations.nology sector for a longerinvestment horizon. The fund is allocating 93.75% of the total corpus to largecap,The general thought process 2.97% to midcap and 3.28% toabout the fund is that if there is smallcap as on 31st July, 2018.an overvaluation of the broader

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.10 TARAKKI TIMES, OCTOBER 2018 Fund ReviewHigh portfolio turnover ratio compare to peers Should you invest now? IT sector will benefit from a weaker currency so it’s goodA higher portfolio turnover ratio suggests fund manager did quite a bit Vijay Kuppa, CBO and COO, time to invest.of buying and selling of stocks in the portfolio compare to peers in last Orowealth said, “The infor-one year. mation technology sector is Expert takeaway projected to have a strong growth over the next couple of Kuppa said, “The broad indices years. There is sharp spike in the are reaching its all-time high and digital usage coupled with new creating new records. So, marketNew entrants and exits from the portfolio The information technology sector is projected to have aDetails on the stocks entered and exited during Feb 1, 2018 to July 31, strong growth over the next2018. couple of years.Caution: Investing in information technology thematic funds could technological advancements capitalisation is now stretched inturn bad decision such as Blockchain and AI which terms of valuation and thus the are expected to propel the IT fund managers are now inclinedDuring bull phase, thematic funds will perform well and gives strong sector. The allocation of `3,073 towards buying IT sector stocksreturns. However, when markets enter into bear phase and things turn crore for Digital India Program in the dip.”bad, these funds register heavy losses. For instance, during sub-prime and INR 10,000 Cr for newcrisis i.e. FY08 and FY09 thematic funds in technology sector suffered telecom infrastructure is expec- He added, “The above factorsheavy losses. ted to create huge opportunities makes this scheme an ideal in the sector. In addition to this, investment for investors with a increasing exposure of DIIs is moderate to high risk profile. critical for the growth of the However, the investment horizon industry.” needs to be long-term in order to enjoy full benefits of the scheme. The rupee has fallen more than There are some good value buys 12 percent year-to-date and it hit by the fund managers of this a record low of 72.45 against scheme.” USD (on 10th Sep, 2018). Analysts on Dalal Street believes ICICI Prudential Bluechip FundThe Economic Times | September 18, 2018 Prudential Bluechip focuses on bluechip while its benchmark index Nifty 100 TRI has companies. Launched in 2008, the scheme given 10% and 13.7% returns. In the past sixRemaining invested with schemes that suits well for conservative investors who months, the scheme's fund managers have a focused approach in selecting have reasonable expec-tations in returns. Priyanka Khandelwal, Rajat Chandak and large-sized companies is one way to Besides consistency in its performance, the Anish Tawakley have enhanced exposure indeal with the heightened volatility in scheme is known to protect the downside in large-cap stocks across sectors which havemarkets. A key reason for this approach is bear cycles over the past 10 years. This is reasonably good visibility of revenues andthat large-sized companies that have a long largely due to keen focus on quality tumed attractive in the recent fall in markets.operational history have experienced companies. A few prominent stocks in the scheme are:differing demand and market cycles, which HDFC, Vedanta, and SBI Life Insurance.are better placed to contain the downside In the past three-year and five-year periods,for investors. the scheme has given 10% and 15% returns - Rajesh Naidu/ET Intelligence GroupAmong the large-cap schemes, ICICIPORTFOLIO CHANGE (PAST 6 MONTHS) RETURNS PEER COMPARISON (in %) 1-YEAR 3-YEAR 5-YEARNew Entrants Complete Exits Increase In Allocation ICICI Prudential Bluechip Fund Vodafone Idea Axis Bluechip FundBharti Airtel Yes Bank HDFC, Bharti Airtel Invesco India Largecap Fund 1.06 10.63 14.92 TVS Motor Company 4.75 10.23 14.35Mangalore Refining & Petro IndusInd Bank Source: Accord Fintech, Compiled by ETIG DatabaseSBI Life Insurance 0.73 8.25 14.22Titan CompanyRETURNS (in %) DIVERSIFIED LARGECAP- Expert Take RUPESH BHANSALI, AVG CAGR Head-Mutual Fund, GEPL CapitalPERIOD CAGR RETURN SIP CAGR RETURN -1.551 Year 0.54 -7.56 8.19 The scheme's managers use competitive analysis and qualitative3 Year 10.80 10.00 14.10 filters to identify the best picks within each sector and industry.5 Year 14.87 11.34 The strategy favours companies with robust business models, strong entry barriers, and the ability to scale up without erodingSource: Accord Fintech, Compiled by ETIG Database profit margins. The fund has been a steady performer and is an excellent choice for investors looking for large cap exposure with steady performance across market cycles.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 11TARAKKI TIMES, OCTOBER 2018mint List of ICICI Prudential Funds in Mint30BESTFUNDSMint | October 2018FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr)EQUITY-LARGE CAPICICI Prudential Bluechip Fund 10.70 15.06 17.70 18,966.30ICICI Prudential Nifty Next 50 Index Fund 10.47 17.69 NA 277.09ELSSICICI Prudential Long Term Equity Fund 8.93 17.36 18.58 5,386.01(Tax Saving)AGGRESSIVE HYBRID 10.52 16.59 17.07 27,341.81 Fund size (Rs cr)ICICI Prudential Equity & Debt Fund 1-year return (%) 2-year return (%) 3-year return (%)FUND CORE 1.27 1.83 3.95 7,582.36DEBT-ORIENTEDSHORT DURATIONICICI Prudential Short Term FundSIP 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 (%) 9,71,506 40,38,094 Midcap Fund 12.79 16.9ICICI Prudential Return (%) 9,79,843 37,00,450Bluechip Fund 12.73 15.03ICICI Prudential Equity Return (%) 9,73,295 37,53,868 & Debt Fund 12.53 15.33 ICICI Prudential Return (%) 9,17,676 33,61,618Large & Mid Cap Fund 9.95 12.99ICICI Prudential Return (%) 9,59,252 36,01,164Multi-Asset Fund 11.76 14.42ICICI Prudential Return (%) 10,02,527 37,66,047Multicap Fund 13.79 15.23ICICI Prudential Balanced Return (%) 9,14,619 33,42,716 Advantage Fund 9.76 12.88 ICICI Prudential Return (%) 9,63,002 --Focused Equity Fund 11.84 -- ICICI Prudential Return (%) 9,79,496 43,42,513Value Discovery Fund 12.9 18.68ICICI Prudential Long Term Return (%) 9,61,184 38,10,304 Equity Fund (Tax Saving) 11.95 15.79Data in XIRR (%) terms and as of September 28, 2018Past performance may or may not sustain in the future.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.12 TARAKKI TIMES, OCTOBER 2018 Fund ReviewETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | October 2018FUND Value Research Returns (%) Fund RatingEQUITY: LARGE CAPICICI Prudential Bluechip Fund 3-month 6-month 1-year 3-year 5-yearICICI Prudential Nifty Next 50 Index Fund 15.15HYBRID: AGGRESIVE -2.38 -3.23 0.26 10.26 17.62ICICI Prudential Equity & Debt Fund -5.6 -12.64 -8.45 10.1 16.62HYBRID: CONSERVATIVE 11.39ICICI Prudential Regular Savings Fund 0.36 -2.65 -0.05 10.25 8.45DEBT: MEDIUM- TO LONG-TERMICICI Prudential Bond Fund -0.2 0.33 3.15 8.28 10.41DEBT: DYNAMIC BOND 0.81 0.64 1.53 6.24 8.1ICICI Prudential All Seasons Bond FundDEBT: CORPORATE BOND 1.03 1.5 3.06 8.01ICICI Prudential Corporate Bond Fund 1.35 2.19 4.82 7.28Systematic 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 Years 398,555 823,767 1,552,050 2,898,850ICICI Prudential Return (%) 12.79 Midcap Fund 6.86 822,641 17.37 16.90 433,337 12.73 1,397,285 2,623,477ICICI Prudential Return (%) 12.68 818,555Bluechip Fund 420,702 12.53 14.40 15.03 10.61 768,349 1,419,785 2,665,053ICICI Prudential Equity Return (%) 408,026 & Debt Fund 9.95 14.85 15.33 8.48 803,423 1,304,173 2,352,822 ICICI Prudential Return (%) 425,630 11.76Large & Mid Cap Fund 11.42 844,166 12.45 12.99 430,300 13.79 1,377,221 2,538,814ICICI Prudential Return (%) 12.19 764,739Multi-Asset Fund 406,061 13.99 14.42 9.76 1,470,558 2,651,830ICICI Prudential Return (%) 8.15 804,806Multicap Fund 435,252 11.84 15.84 15.23 13.00 825,993 1,281,906 2,339,554ICICI Prudential Balanced Return (%) 414,770 12.90 Advantage Fund 807,140 11.97 12.88 9.62 11.95 1,341,245 -- ICICI Prudential Return (%) 419,162 --Focused Equity Fund 10.35 13.24 1,531,139 3,190,325 ICICI Prudential Return (%) 18.68Value Discovery Fund 16.98 1,421,493 2,731,798ICICI Prudential Long Term Return (%) 15.79 Equity Fund (Tax Saving) 14.89Data in XIRR (%) terms and as of September 28, 2018Past performance may or may not sustain in the future.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 13TARAKKI TIMES, OCTOBER 2018 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | October 2018Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR 14.9 13.6ICICI Prudential Bluechip Fund -4.7 1.1 10.6 17.7 23.6ICICI Prudential Large & Mid Cap Fund -9.6 -3.2 9.8 12.0 13.5ICICI Prudential Multicap Fund -3.4 3.8 9.8 20.7 17.2ICICI Prudential Midcap Fund -16.6 -8.4 7.8 -ICICI Prudential Smallcap Fund -26.2 -15.6 3.3 13.6 14.0ICICI Prudential Focused Equity Fund -2.1 4.7 9.4 22.2 16.5ICICI Prudential Value Discovery Fund -4.1 2.2 7.4 -ICICI Prudential Long Term Equity Fund -3.5 5.0 8.7 16.4(Tax Saving) -ICICI Prudential Dividend Yield Equity Fund -14.0 -8.0 9.4 9.3 8.4ICICI Prudential FMCG Fund 0.6 6.2 11.3 7.9 8.3ICICI Prudential Infrastructure Fund -19.3 -8.8 4.2 8.4 8.4ICICI Prudential Banking & Financial Services -10.9 -8.6 13.9 8.4 10.4ICICI Prudential Technology Fund 21.7 38.8 11.0 8.1 8.5ICICI Prudential P.H.D Fund --- 8.6 9.2ICICI Prudential Equity & Debt Fund -5.0 0.9 10.4 11.3 12.8ICICI Prudential Equity Savings Fund 1.2 3.7 7.7 16.9ICICI Prudential Ultra Short Term 5.5 6.4 7.9ICICI Prudential Savings Fund 5.3 6.4 7.7ICICI Prudential Money Market Fund 5.8 7.2 7.3ICICI Prudential Short Term Fund 3.7 4.0 7.2ICICI Prudential Medium Term Bond Fund 3.3 3.5 7.0ICICI Prudential Bond Fund 1.8 1.6 6.3ICICI Prudential Long Term Bond Fund 1.3 0.5 6.5ICICI Prudential All Seasons Bond Fund 3.5 3.2 8.1ICICI Prudential Corporate Bond Fund 4.3 4.8 7.3ICICI Prudential Credit Risk Fund 4.5 5.1 7.4ICICI Prudential Banking & PSU Debt Fund 3.7 3.8 7.6ICICI Prudential Gilt Fund 4.1 2.6 7.5ICICI Prudential Regular Savings Fund 1.8 3.4 8.4ICICI Prudential Balanced Advantage Fund -1.8 2.0 7.9ICICI Prudential Child Care Fund (Gift Plan) -5.4 2.7 8.6Source : NAV India; NAV for the growth option as on 12-10-2018. Past performance may or may not sustain in the future.It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certainSchemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please referto notices and addendums available on our website in this regard.The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy andrisk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerptsof publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (theFund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not berelevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, TheTrust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential,as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICIPrudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material.Mutual Fund investments are subject to market risks, read all scheme related documents carefully.