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Tarakki Times English Nov 2020 - Jan 2021

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\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS MUMBAI | NOV 2020 - JAN 2021| PAGES 17 Professional Views Market rally may become Pg. 2 more broad-based Diversify to Protect Pg. 3 It is a good time to look at non-US, global equity investing S Naren's investing roadmap for 2021 Pg. 4 Equity investors can consider funds that are based on economic macros Pg. 6 Business cycle investing will be the dominant style for next 10 years, but warns it's not for everyone Pg. 7 Times of India | January 01, 2021 Contrarian investing: A smart strategy Nimesh Shah tion and added that investment surpasses 2%, the surplus liqui- to lift your mutual fund returns MD & CEO in debt instruments could be dity with the RBI comes off ICICI Prudential Mutual Fund looked at through a mix of sharply, global money market Pg. 8 dynamic asset allocation and assets under management fall arbitrage and accrual funds. sharply or even if there is some Investors have rewarded funds with ICICI Prudential Mutual Fund MD unforeseen geopolitical risk.\" better risk management and CEO Nimesh Shah on Many see debt to be a safe bet, Thursday said that the market given the sharp rise in stock He suggested that retail inves- Fund Review rally could become more broad- markets across the board, driven tors should watch out for any Pg. 9 based in the coming months as by aggressive rate cuts by change in the US Federal growth picks up. He added that central banks to boost economic Reserve's stance, which can Should you invest in ICICI Pru the current rise is driven by large activity. Shah said that the impact markets negatively. Balanced Advantage? flows from the developed current rally is expected to con- markets, such as the US, which tinue for some more time as the Asked about the reasons for Pg. 10 have low interest rates. US Fed pumps in trillions of outflows from equity funds, the dollars to revive the economy. fund house boss said that inves- Three reasons to invest in BAF now tors had turned cautious after the Shah said, \"As long as such flows steep fall in stock markets in Pg. 11 While he suggested that valua- continue, the chances of a major 2020 and some of them have tions were high, Shah also said correction in the equity market opted to book profits as a Five mutual funds that make the most that it needed to be looked at in remain diminished. That said, we precautionary measure. \"But this of bull runs and cushion downside the context of low interest rates. usually review our calls based on may not last long. We are likely to Apart from value picks, he said, macro-economic developments. see flows again. There has been Tarakki Corner small and mid -caps stand to This time, we would review our a healthy addition of fresh SIP Pg. 12 benefit as they have under- call if crude oil crosses $60 per accounts in the past couple of performed in the last few months barrel, inflation comes back in months as well,\" he added. Banita Jain, Deepak Jain besides getting access to capital the Western world and sustains, Ashvvy Investments Pvt. Ltd. at lower cost. Further, he said the US 10-year (treasury yield) that companies will see an Pg. 13 improvement in profitability, Indian equity markets are helping boost their stock price. amidst the 'developed Sugandh Goenka world's central bank-driven Stay Wealthy Investment Services \"...if an investor is ready to stay bull market'. It is very likely put for the next five years, one that the current trend may Distributor Insights can consider investing in equity continue in the near to funds, but through the syste- medium term on the back of a Pg. 14 matic investment plan route. The steady stream of FII inflows. other investment which inves- The Art Of Investing Through SIPs tors could consider is funds which take a call based on macro Pg. 15 factors or business cycle funds. For those looking for oppor- Asset Allocation: The Evergreen tunities to invest in international Strategy markets, one can opt for non-US Equity funds or Fund-of-Funds,\" Fund Review Shah told TOI. Pg. 16 List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 17 List of ICICI Prudential Funds in At the same time, he said that it Star Track Mutual Fund was important to adhere to the principles of sound asset alloca-

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 2 TARAKKI TIMES, NOV 2020 - JAN 2021 Interview Diversify to Protect The ultimate guide to investing in the new normal: Asset Allocation Forbes India | January 04, 2021 Nimesh Shah Value-themed funds ment, small- and mid-cap looking to invest into the US MD & CEO companies stand to benefit the market. We believe the US ICICI Prudential Mutual Fund Given that equity as an asset most on account of low cost of market is heading to a bubble class has rallied continuously, capital. zone and a correction could play The year 2020 will go down in the one has to be cautious. At such out anytime in the future. So, one history books as a year of global times, adhering to asset alloca- In the quarters ahead, it is very could consider investing into public health crisis which led to tion is of absolute importance. likely that the profitability of non-US, global equity. One can an unprecedented worldwide Spread investments across fundamentally strong com- opt for funds or Fund of Funds response, driving equity markets equity, debt, gold etc. rather than panies in the broader markets is which invest across different to their lifetime highs. The Indian going overboard on any one likely to improve and soon international markets and across equity market saw one of the particular asset class. This will enough the same will be reflec- different geographies. shortest bear markets in its ensure that whenever there is ted in their stock price as well. recorded history followed by the any correction, the portfolio is So, if an investor is ready to stay Low probability of rate cuts sharpest recovery, a rally which not adversely impacted. One can put for the next five years, one still continues, albeit some also achieve this through inves- can consider investing into Thus far in calendar year 2020, volatility basis news and fund ting in asset allocation schemes diversified funds, but through we have seen RBI cutting rates flows. The rallies have been which tend to gain from market the SIP route. aggressively by 115 basis points. largely possible thanks to the volatility by participating in the This has been coupled with massive fiscal stimulus rolled out rally through equity allocations The other investment which various measures with an aim to by developed market central while the presence of debt limits investors can consider is funds support growth and ease the banks along with the sentiment downside to the portfolio. which take a call based on the liquidity situation. Going for- booster which came in the form economic macros. This is where ward, we assign low probability of positive news in terms of For those looking to invest in the Business Cycle Fund comes for rate cuts due to a change in vaccine development. equity schemes, one can in. Here, the objective is to invest growth and inflation dynamics. The road ahead For those looking to invest in The surplus liquidity in the equity schemes, one can system has found its way to the At this juncture, it is important to consider investing in funds credit markets with yields across grasp the fact that Indian equity with a value bias. We believe the interest rate curve cooling off markets are in the midst of a the divergence between considerably. As a result, the ‘developed world central bank- value and growth stocks still effective return at the shorter driven bull market’. It is very likely continues to prevail, though end of the curve does not look that the current market trend it has reduced with time. very encouraging. However, we may continue in the near-to- believe the non-AAA corporate medium term as the markets consider investing in funds with across two to five sectors which bond space may have some may continue to see a steady a value bias. We believe the we believe will stand to gain pockets that offer better carry stream in terms of FII inflows, divergence between value and based on where they are placed and margin of safety relative to thanks to the Fed continuing to growth stocks still continues to in terms of their respective AAA and money market rates. pump in trillions of dollars into prevail, though it has reduced business cycles. the financial system. As long as with time. Value as a theme still Going forward, accrual income flows continue, the chances of a continues to be relatively attrac- At a time when the economy is shall be a significant component major correction in equity tive. We believe there are still growing at a faster pace, the aim of the return of bond investors markets remains diminished. pockets of opportunities in the of the fund will be to invest in and returns from capital appre- What can dent the market in the value space providing good sectors that are closely related to ciation may take a back seat. Due meanwhile, especially in the dividend yield and that have the economy and when there are to better term premium and Indian context, is the rise in crude better earnings visibility. Hence, times of economic slump, the favourable credit spread, we are oil prices. That said, this view is we recommend investors to take portfolio will be positioned to positive on schemes which can subject to review if any of the exposure to schemes with value move towards the defensives as actively manage duration to following plays out: Crude oil bias. a means to limit portfolio benefit from the steepness in the crosses $60/barrel, US 10-year downside. yield curve and schemes which yield surpasses 1.5 percent, Meanwhile, mid and small caps can take exposure into spread surplus liquidity with the Reserve have underperformed large caps For those looking for oppor- assets (AA corporate bonds), Bank of India (RBI) comes off in the last couple of years and tunities to invest in international which may benefit from better sharply or in case of global that trend is expected to reverse. markets, it is time to strike a accrual income. money market funds seeing their In a low interest rate environ- cautious note, especially if one is asset size reduce sharply. We continue to remain positive on the credit risk space as valuations remain attractive. The elevated yields in the accrual space with high spread over repo provides a good margin of safety. •The writer is managing director and CEO, ICICI Prudential AMC.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 3TARAKKI TIMES, NOV 2020 - JAN 2021 It is a good time to look at non-US, global equity investing Business Standard | December 01, 2020 As the economy rebounds from believe that value as a theme is trend picking up? Nimesh Shah the effects of the pandemic- better placed than growth. MD & CEO induced lockdown, Nimesh In the past few years, investors Shah, managing director and ICICI Prudential had been have warmed up to investing in ICICI Prudential Mutual Fund chief executive officer at ICICI positive on cyclicals. What's developed markets through Prudential AMC tells Puneet your strategy? equity mutual funds. From an tory environment have resulted Wadhwa in an interview that investor's perspective, the target in weak earnings and stretched investor sentiment should We have been positive on market has largely been the US, balance sheets. This, coupled improve going ahead and pave sectors, such as power, telecom, where technology names are with an easy monetary policy the way for fresh inflows into and metals & mining, for some driving the indices to new highs. stance of the central banks, may equity mutual fund schemes. time now. Many frontline com- But relative to domestic equi- create the base for the next panies in each of these pockets ties, the interest has not been commodity upcycle in India. What is your view of how the were available at prices below sizeable, although the past markets have played out over their intrinsic value. As the performance of such funds has What could be a fixed-income the last few weeks? economy recovers, a number of been encouraging. Investors strategy? these companies are poised to should be mindful of the fact the The markets may look over- do well. We are also positive on US market is heading to bubble Over three years, we have been valued on the surface given the banks from a five-year view, zone and a correction remains bullish on the fixed income excess liquidity that is leading to since the competition posed by imminent. For the US rally to segment. The quantum of rate a price rallt in growth stocks. NBFCs has come down and, dust sustain, growth needs to pickup. cuts may come down as During 1992-1994, 2003-2008 will likely settle over the next six It is a good time to look at non- compared to what we have seen and 2014-2017, a similar trend months on moratorium-related US, global equity investing. in the past couple of years. had played out. The divergence issues. The other opportunity is Hence, an accrual strategy is between growth and value, to invest in good dividend-paying Can the rally in metals sustain? best placed. taken on a calender year-to-date firms, which are not leveraged at (CYTD) performance spread this point, or even in a mutual Neither the consumer durables basis is the largest ever and fund scheme, which focuses on nor the auto industry can grow exceeds that seen in the run-up having a high div-idend yield without metals, where most to the 2000 dotcom bubble. This from stable firms. companies are trading at single- makes value as a theme relatively digit price-to-earnings (PE) attractive to growth. Moreover, Investors are also looking at multiples. For nearly a decade, the dollar may depreciate further foreign markets for weak demand, weak global due to ample liquidity. We diversification. Do you see this prices, and a restrictive regula- S Naren's investing roadmap for 2021 ET Market | January 06, 2021 S Naren highs. Thankfully, most investors navigated many bull and bear B) Share price, valuation and ED & CIO made money! And like all markets in his investing journey value investing: there have been ICICI Prudential Mutual Fund adversity, this year too taught us this far, and who is always super- points of time when circum- some hard lessons in the market resilient in times good or bad. stances have made us wonder if Calendar 2020 was a year of place. As we hopefully look into Asset allocation, diversification & the old definitions of these roller coaster ride for Dalal the New Year to lift the cloud of balanced investing are the kinds concepts have ceased to work. Street, with many sharp plunges the pandemic from above our of expressions one tends to Do you still remain in the old and rapid climbs that lifted the head, the market place is looking associate with him. school, or have your thoughts benchmarks to new record riskier, the path ahead for the evolved? And how? economies looks more challen- So, let's hear out how he visuali- ging, and options for wealth ses the year ahead, what are his Thank you Mr Naren, that was creation more difficult. new learnings from a challenging indeed an insightful conver- year and what would be his sation. That’s it in our New Year So we did what we do best at guidance for investors to tread special podcast. You can check every crossroads: turn to the the path ahead. out our regular podcasts on the veterans and experienced for equity market twice every wisdom and guidance. We begin A) Calendar 2020 taught some weekday. by talking to one of Dalal hard lessons to investors across Street's most seasoned money the spectrum. What are your key managers, S Naren, who has takeaways?

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 4 TARAKKI TIMES, NOV 2020 - JAN 2021 Interview Equity investors can consider funds that are based on economic macros Moneycontrol | January 04, 2021 S Naren of ICICI Prudential US Fed will continue pumping that take a call based on the S Naren Mutual Fund, who has over 30 trillions of dollars into the economic macros. This is where ED & CIO years of experience in the capital financial system. the ICICI Prudential Business ICICI Prudential Mutual Fund market, is of the view that the US Cycle Fund comes in. market is heading to a bubble As long as this stance continues, the new growth engines. zone and a correction could play the chance of a major correction Here, the objective is to invest out anytime in the future. in the equity market looks across three to five sectors that With the consolidation of India’s unlikely. What can dent the mar- we believe will stand to gains Telecom industry largely com- Naren, who is ED & CIO at ICICI ket in the meanwhile, especially based on where they are placed plete, the wireless industry’s Pru MF, is of the view that one in the Indian context, is the in terms of their respective revenue is expected to double to could consider investing into substantial rise in crude oil business cycles. ~INR 2,600bn by FY25E. non-US, global equity, and one prices. can even opt for funds or Fund- In line with our framework of Metals & Mining: For nearly a of-Funds which invest across From an investor perspective, in reviewing calls based on macro- decade, metals have witnessed different international markets a boom phase, investing requires economic developments, we weak demand. Apart from this, and across different geogra- absolute care. Given that equity would review our call if crude oil weak global prices, the restric- phies, he said in an interview as an asset class has rallied crosses $60, US 10-yr surpasses tive regulatory environ-ment has with Moneycontrol’s Kshitij continuously, one has to be 2%, surplus liquidity with RBI resulted in weak earnings and Anand. cautious. At such times, adhe- comes off sharply, in case if stretched balance sheets. ring to asset allocation is of global money market asset Edited excerpts: absolute importance. under management falls sharply This coupled with an easy or in the event of some unfore- monetary policy stance of Q) Market seems to be steadily Spread investments across seen geopolitical risk. Central Banks may create the climbing higher. It looks like we equity, debt, gold etc., rather base for the next commodity up- could head higher towards than going overboard on any one Q) What are your contra bets or cycle in India. 49500-50000 on the Sensex and particular asset class. This will themes for the year 2021? about 14500-14700 on the Nifty. ensure that whenever there is a Over the next 10 years, India’s What is your outlook on the correction, the portfolio is not A) Sector-wise, power, telecom, structural demand should markets for the year 2021? adversely impacted. metal, and mining are our contra increase by 4-5% CAGR driven What are you recommending bets. by India’s increasing urbani- investors to do? One can also achieve this zation, which at ~35% sits through investing in asset Power: The relaxation of lock- among the lowest in the large A) Indian equity markets are in allocation schemes. By staying down measures has improved economies. the midst of a developed world’s invested in such schemes, one power demand and capacity Central Bank driven bull market. can gain from market volatility by utilization at plants has also seen Q) Mid & Small-caps seems to Market sentiment too is robust participating in the rally through improvement. This may help in be the talk of the town because on account of the revival in the exposure to equities while the improving the margins of power broader markets are outper- economy as can be seen through presence of debt ensures generation companies in the forming in this rally. What is the various high-frequency data downside protection to the quarters ahead. fuelling optimism in the points, the decline in interest portfolio. broader market space, and will rates, pickup in credit growth, Telecom: Tariff hikes in the future the momentum continue in the decline in COVID infection For those looking to invest in look likely. This could be either 2021? What is your recommen- numbers etc. equity schemes, one can regulator-driven or market-driven dation to investors for this consider investing in funds with in order to improve the Average space? All of these have ensured that the a value bias. This is because Revenue per User (ARPUs) and rally seen in recent times is much growth and quality has signifi- the financial health of the more broad-based in nature. cantly rallied but the value is yet industry. to catch up. We believe we are in It is very likely that the current the early stages of value playing Higher Data usage post-Covid-19 market trend is likely to continue catch-up. and Fibre-to-the-Home (FTTH) in the near to medium term and Enterprise connectivity because of the global liquidity The other investment which businesses, which are still at a factor. It remains to be seen if the investors can consider is funds nascent stage, could become From an investor perspective, in a boom phase, investing requires absolute care. Given that equity as an asset class has rallied continuously, one has to be cautious.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 5TARAKKI TIMES, NOV 2020 - JAN 2021 A) Mid and small caps have We believe there are still yield and have better earnings underperformed large caps in pockets of opportunities in visibility. Hence, we recommend the last couple of years and that the value space providing investors to take exposure to trend is expected to reverse. In a good dividend yield and have schemes with a Value bias. low-interest rate environment, better earnings visibility. small and mid-cap companies Hence, we recommend Q) How is ICICI Prudential stand to benefit the most. investors to take exposure to Business Cycle Fund different schemes with a Value bias. from other schemes? In the quarters ahead, it is very likely that the profitability of in non-US, global equity. One can was the increase in exposure to A) Calendar 2020 was the year fundamentally strong com- opt for funds or Fund-of-Funds companies that may benefit where we saw several sectors panies in the broader markets is which invest across different from disruption due to the outperform in a small span as the likely to improve and soon international markets and across COVID-19 impact or which can pandemic raged across the enough the same will be different geographies. tide over the dislocation of the globe. Towards the middle of the reflected in the stock price as supply chain. year, there was a sectoral change well. Q) Several of your equity in leadership, all of which schemes have logged in sharp In such schemes, the exposure occurred very swiftly. So, if an investor is ready to stay gains over the past few towards rural economy-oriented put for the next five years, one m o n t h s . To w h a t d o y o u companies benefited given the Historically, it is opportunities can consider investing into attribute this turnaround? sustained demand from these such as these which open doors broader markets, but through the pockets. for wealth creation opportunities SIP route. A) Most of the portfolios, across as the business cycle shifts. equity schemes, consisted of Q) Do you reckon there is room Q) International investing is names including PSUs, espe- for value investors at a time For tapping into such oppor- another area that has garnered cially those which offered value when momentum has been tunities one requires a compre- investor interest over the last in terms of business funda- fuelling the current market hensive understanding of mar- couple of years. What is your mentals and viability. rally? ket/business cycles, analysing view on global markets since policy responses, and taking most of them have rallied Economic recovery as a theme A) We believe the divergence exposure to the right sectors at significantly this year? was at the core such that between Value and Growth the right time. sectors/ themes which perform stocks continues to prevail, A) Over the last few years, the well during periods on economic though it has reduced with time. Through this fund, our endea- investor interest in schemes that turnaround were built into the Value as a theme still continues vour is to invest based on macro invest across different geogra- portfolio. to be relatively attractive to trends. At a time when the phies, especially the United growth. economy is growing at a faster States has gathered pace. The idea here was to concentrate pace, the aim of the fund will be on future potential gainers/ We believe there are still pockets to invest in sectors that are This trend could largely be on leaders. Another factor that of opportunities in the value closely related to the economy account of the robust return benefited some of the portfolios space providing good dividend and when there are times of profile these funds posted over economic slump, the portfolio the past years. Nevertheless, it is will be positioned to move time for investors to strike a towards the defensives as cautious note especially for a means to limit portfolio those looking to invest in the US downside. market. We believe the US market is heading to a bubble zone and a correction could play out anytime in the future. So, one could consider investing At a time when the economy is growing at a faster pace, the aim of the fund will be to invest in sectors that are closely related to the economy and when there are times of economic slump, the portfolio will be positioned to move towards the defensives as a means to limit portfolio downside.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 6 TARAKKI TIMES, NOV 2020 - JAN 2021 Interview Business cycle investing will be the dominant style for next 10 years, says S Naren, but warns it's not for everyone CNBC TV-18 | December 28, 2020 The unpredictable onset of the also growth, but mainly inflation means that business cycle S Naren COVID-19 pandemic, and the – getting out of hand. oriented funds, which focus on ED & CIO resulting market collapse in macro-oriented thinking will be ICICI Prudential Mutual Fund March, caught many investors What does this mean for the best way to look at inves- on the wrong foot, but what was markets? ting,” he said. “Metals, corporate banks, infra- equally surprising was the structure and metal stocks could sudden bounce back in stock “This is a developed world The importance of top-down do well,” he said. markets globally. central bank bull market,” Naren investing emerged over the past said in an interview with CNBC- two decades as a global liquidity But the fact that these trends are So with several economies still in TV18. “This means that till boom lifted most stock markets linked to broader macro cycles dislocation and various sectors inflation starts rising in the US, around the world between 2003- mean that they make the job of ravaged by the pandemic, many and the Fed chief wants to 2007, and the global financial investing that much more markets are sitting at all-time withdraw liquidity, valuations will crisis caused equities to crash. difficult for the average investor. highs. remain elevated.” In India, too, the government’s So what should retail investors S Naren, ED and CIO of ICICI Since macro developments are response to the 2008 crisis do? Prudential AMC, believes there is notoriously difficult to predict, resulted in a short-term boom till only one factor largely respon- especially by way of timing when 2012, till it caused high inflation “Have an asset allocation plan,” sible for this: global central a particular event could happen, and currency deprecation, and Naren said, talking about the banks. it makes it that much difficult for loose lending practices caused principle where investors should investors to say how they will the NPA cycle, which took outline a mix of investments In response to the economic play out when it comes to several years to wind down. between asset classes such as crisis caused by COVID-19, markets. stocks, bonds, property and gold central banks (and governments) This means that fund managers decided by their goals, age and globally, and especially in deve- Towards that end, Naren’s AMC who identified the top-down risk appetite. loped countries such as US, recently launched the ICICI trend that India would be in a launched stimulus programmes Prudential Business Cycle Fund. deflationary period between “Don’t overleverage on equity measuring trillions of dollars, 2013 and 2020 -- as banks and (thinking that stocks will con- through asset purchases, liqui- As opposed to bottom-up funds, companies unwound their tinue to remain in a bull market dity injections and other means. where fund managers focus balance sheets -- would have for a long time). You will pay if Interest rates were slashed to on identifying individual stocks tempered their approach you don’t have an asset alloca- near zero. with the highest prospects for accordingly. tion plan. Whether you will pay in growth, business cycle funds 2021 or 2024 is difficult to say,” The unprecedented money- follow a top-down approach, Following the COVID-19 crisis, he said. printing exercises have the identifying how broader eco- the immediate outlook is that intention of reviving growth as nomic cycles will affect markets, earnings are set to bounce back well as healthy inflation to the sectors and stocks. strongly, and depressed sectors, point that it is reflective of high such as cyclicals could see their demand and a vibrant economy. “For the next 10 years, central stock prices rise. But they carry a risk of things – banks will drive markets. This For the next 10 years, central banks will drive markets. This means that business cycle oriented funds, which focus on macro- oriented thinking will be the best way to look at investing.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 7TARAKKI TIMES, NOV 2020 - JAN 2021 Contrarian investing: A smart strategy to lift your mutual fund returns Moneycontrol | November 04, 2020 However, a bit of contrarian scheme. they gave 7 percent and 11 thinking can help you in identi- It is quite common to look at past percent return on an average, fying themes that may rally later returns of a category or product, outperforming most categories, on. and invest accordingly. as yields started to cool-off. S Naren Look at past returns carefully “Retail investors prefer invest- Fund managers say that when ED & CIO ment ideas that are already yields are on the higher side, it is ICICI Prudential Mutual Fund Says Naren, “If an asset class has over-crowded as most funds actually the right time for you to done well over the last ten years, are flowing there,” says Anup build positions in these funds. If you were one of those investors should switch out of Bhaiya, founder of Money Honey When yields are low, which is the investors that got into gold funds that asset class and look at Financial Services. present case, it is better to avoid and international schemes entering another asset class that or exit gilt funds. “In a low focused on US equities or even has been out-of-favour for a “When it comes to making fresh interest-rate environment, it is pharma stocks over the last similar time-frame.” investment decisions, investors better to avoid entering gilt couple of years, you would be should be a bit contrarian and funds. However, when g-sec called a momentum investor. You Such an approach can help you avoid relying upon past returns yields are closer to eight percent, went with the flow and invested to take profits when your of any particular market segment an investor can take position in in segments that were already investments in an asset class or sector. For instance, mid-cap these funds,” says Marzban Irani, doing well. have seen strong outperfor- funds that did extremely well in chief investment officer-fixed mance. 2017 have under-performed for income, LIC MF. But what if someone took a the last two years,” says Amol contrarian view of the markets Naren explains that being con- Joshi, founder of Plan Rupee Contrarian investing can be and did not quite rush behind trarian means buying low and Investment Services. risky momentum picks. selling high. “By 2013, real- estate had done extremely well In 2017, mid-cap funds gave If someone advises you to invest Sankaran Naren, chief for ten years, and small-cap average returns of 43 per cent, in credit risk funds right now, it is I n v e s t m e n t O f f i c e r, I C I C I equity had done badly for seven outperforming most categories. quite likely that you might Prudential mutual fund is famous years. So, to have bought small- However, returns were -12 shudder at the idea. The winding- for looking away from crowded cap equity and sold real-estate percent in the next year and a up of Franklin Templeton’s debt investment avenues. He is one of would have been a contrarian little over two per cent in the schemes, which took risky credit the Indian mutual fund’s most strategy,” he says. following one. calls, must be still fresh in your prolific contrarian investors. memory. Towards the end of 2013, his In the current environment, he How to spot a contrarian idea? fund house started rolling out says a contrarian approach However, a contrarian view closed-end funds as it antici- would be to look at PSU, metal, Look out for sectors and seg- would be that the yield to pated a change in government in power and special situation ments that investors are scared maturity (YTM) of these funds is May 2014. stocks. “Several of these have to invest in. Take the case of gilt at elevated levels and factors all not delivered returns for the last funds. Over the past three-year the potential risks from further ICICI Pru was one of the few fund 10-14 years. Even high dividend period. They have given close to credit defaults and rating houses that rolled out schemes yield stocks can be considered, nine percent return. But that has downgrades. that invested in mid and small- as these offer yields higher than largely come due to the fall in cap stocks during the time, in the rate at which they are interest rates in 2018 and 2019. As mentioned earlier, higher fact 28 closed-end schemes till borrowing money,” Naren points The 10-year benchmark govern- yields can offer investment 2016. It got the start of the grand out. ment security’s yield went up opportunities. So, a contrarian equity rally right. from about 6.3 percent in investor would look for well- He says the Nasdaq index looks January 2018 to 8.15 percent in managed credit risk funds at this In 2017, just months after overheated as it has done well October 2018. Bond prices and point. demonetisation and the gush of for the last eight years. interest rates move in opposite inflows into equities, Naren direction. To be sure, credit risk funds may cautioned investors that though Within ICICI MF’s funds, this still be risky propositions, as we the markets had gone up, contrarian approach is followed In 2017 when yields were rising, don’t know with certainty if the earnings weren’t healthy in the value discovery fund, as gilt funds gave just two percent worst is over yet. enough. well as the focused equity return. But in 2018 and 2019, Many investors prefer to invest in Higher yields can offer investment opportunities. rising markets and hot themes. So, a contrarian investor would look for well- Fund houses are only too happy managed credit risk funds at this point. to roll out new fund offers. Gold, international equities and pharmaceutical sector are some of these themes in recent times.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 8 TARAKKI TIMES, NOV 2020 - JAN 2021 Interview Investors have rewarded funds with better risk management ET Wealth | November 23, 2020 Has the interest rate down differential between the longer due to their exposure to spread Rahul Goswami cycle reached its last legs or can and shorter end of the yield assets. CIO, Fixed Income we expect more softening? curve) on different segments of ICICI Prudential Mutual Fund the yield curve are likely to Perception about debt funds After the Covid development, we provide some cushion to bond has taken a knock with recent authorised to on-board any have not only seen RBI cutting investors. This provides inves- credit episodes. Are recently investment. The decision to rates aggressively but also tors with an opportunity to invest introduced safeguards enough invest in any debt instrument is announcing positive steps for in short to medium duration to restore confidence among taken after in-depth credit easing liquidity and supporting schemes and to add spread investors? review. In this process, credit growth. The down cycle on assets like AA Corporate bonds rating is one of the inputs used interest rates seems to be to benefit from higher accrual. The developments in the early and is not considered as a sole behind us. The next phase of rate part of the year brought forth the determinant. Focus on credit cycle could most likely be a Corporate bond funds and importance of having robust risk selection and avoiding concen- pause or consolidation, till the Banking and PSU debt funds management process. Since tration are the two pillars of our time the economy recovers, have emerged investor then, the mutual fund industry as credit decision-making. Ensuring leading the RBI to change its favourites with the AAA quality a whole has become conscious strict compliance with these stance. Now the focus is likely to 3-5 year bonds seeing sharp of the need for stringent risk processes has helped us to shift towards liquidity and gains. What lies ahead? management. We at ICICI deliver superior investment financial stability. Prudential were among the early experience. The AAA rated funds such as ones to institute an in-house, How can bond investors corporate bond funds and independent risk management The importance of diversifi- generate good returns in an Banking and PSU funds in the team in the Indian mutual fund cation, in terms of asset as well environment of rising inflation past benefited due to RBI cutting industry. This team is inde- as the liability has also come in but low interest rates? interest rates massively. We pendent of the investment team the spotlight. While the asset believe that from the investor and works without any return (investment) side of mutual Inflation in very recent times has experience point of view, the targets. The decision to on-board funds has been under scrutiny, it been elevated due to supply side return potential of investing in a credit is taken only after all the is equally important to maintain disruptions. We believe as the AA-rated papers at this point is due diligence work is carried out granularity in liability (AUM) side unlocking of the Indian economy likely to be better than investing in accordance with the corner- as well. Focus needs to be on continues, these disruptions will in AAA-rated papers. stone of our Debt Investment ensuring adequate diversi- recede, which may help the Policy-SLR (Safety, Liquidity and fication. This ensures that even headline inflation print to What will be a safe place for Return). under the event wherein liquidity decrease. This will open up room bond fund investors if interest of a particular instrument gets for the RBI to continue with its rate cycle turns? What returns During its existence of more than adversely impacted, the overall accommodative stance till can they expect? two decades, ICICI Prudential scheme level liquidity does not growth recovers. AMC has seen no defaults, nor come under stress. As can be RBI may continue its stance of has there been any delay in seen from the monthly data, In terms of investment, currently, \"Whatever it takes\" until the interest payments in our debt investors have re-warded the the curve is very steep. The very economy recovers, hence, investments. Our fixed-income funds with better risk manage- short end of the curve is trading reversal of stance is unlikely to schemes did not have any ment practices. below the RBI's inflation band of take place in the near term. exposure to issuers, which have 4-6%. As a result, the effective Having said that, we believe been under major stress over the Your stance remains that credit return at the shorter end of the accrual strategy is likely to be past two years. This is a risk space remains a good curve does not look very more rewarding compared to testimony to the investment opportunity? What does your encouraging. However, the capital appreciation strategy. So, processes followed by ICICI conviction stem from? spread assets (AA & A papers, it is prudent to take exposure to Prudential AMC. which trade at a rate higher than schemes which can provide We continue to remain positive AAA) and term premiums (rate higher carry (yield to maturity) Your fund house has managed on credit risk space as valuations to guide its debt funds through remain attractive. The elevated The return potential of this storm with no major yields in the accrual space with investing in AA-rated hiccups. How do you ensure high spread over repo provides papers at this point is likely portfolio integrity amid deter- good margin of safety. to be better than investing iorating credit environment? in AAA-rated papers. As a fund house, we have always been conscious of the nature of risks debt funds face. We have put in measures which help mitigate these risks. The approval of a debt investment follows a 'four-eyes' concept wherein no single person is

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 9TARAKKI TIMES, NOV 2020 - JAN 2021 Should you invest in ICICI Prudential Balanced Advantage? Moneycontrol | November 17, 2020 ICICI Prudential Balanced Advantage fund is the second largest fund in this category with assets of over Rs 26,000 crore. It is also one of the oldest schemes in this category Typically, when equity markets portfolio defensive. In other exit points. We took the Each fund follows an in-house rise, we tend to invest more in words, it brings down its pure scheme’s three-year rolling valuation model to determine its equity. When markets decline, (net) equity allocation in rising returns over a total time period of equity allocation. Valuation investors typically hold on and markets. 10 years. Here, IBAF gave 11.8 metrics such as price-to- refuse to sell. percent returns, as opposed to a earnings (P/E), price-to-book S Naren, chief investment officer, return of 9 percent from the (P/B) and dividend yield are To overcome this problematic ICICI Prudential Mutual Fund category average. The Nifty 50 typically used. approach, an asset allocation says, “Balanced advantage total returns index gave 11.7 fund may be of help. Balanced funds, by construct, are defen- percent returns in the same In the risk-return pyramid, the Advantage or dynamic asset sive in nature since they buy period. balanced advantage category is allocation funds decide on equity when it is cheap and sell it placed below aggressive hybrid equity-debt allocation based on when markets are at a high. Portfolio holding schemes but above multi-asset internal models that they follow. Hence, such products tend to IBAF invests in companies allocation and equity savings At present, there are 23 funds underperform the aggressive across market capitalisation. But funds. You cannot compare in this category. The re - hybrid funds when there is a bull it also manages its debt side balanced advantage funds with categorisation of mutual funds market. But in periods of volatility actively. It takes calls on interest aggressive hybrid schemes as was done in mid-2018. But seven such as in 2020 and 2018 after rates as well as a bit of credit the latter follow a static alloca- funds, including ICICI Prudential the IL&FS crisis, and across a full strategy and identifies securities tion strategy in equities that Balanced Advantage, have been market cycle, these funds tend to with slightly lower credit rating of ranges from 65-80 per cent following this strategy for more generate relatively higher return well-managed companies that (unhedged). than seven years. Here, we as compared to the equity are expected to see a rating review the ICICI Prudential oriented funds.” upgrade. At present, the Should you invest in IBAF? Balanced Advantage fund (IBAF). scheme’s average maturity is 2.9 Investors who wish to participate For instance, when the market years. in equity markets with a relatively What is the scheme about? traded new highs in January conservative approach can With assets of Rs 26,123 crore, 2015, January 2018 and January On account of its large size, the consider this category. S Naren IBAF is the second largest 2020, the fund increased its portfolio is fairly diversified. As says, “This fund is suitable for scheme in its category. It hedged position to 30-36 percent per Value Research, its top 10 most investors and particularly switches between equity and and brought down its net equity holdings account for 35.41 those who wish to book profits in debt dynamically by using an in- exposure to around 34, 32 and 50 percent of its portfolio. Its top a disciplined manner when the house model that is based on the percent, respectively. That acted three equity holdings are markets are up and also inves- price-to-book value (P/BV) ratio. as a buffer to the fund in the Reliance Industries (six percent), tors who intend to participate in The fund also looks at other overheated market. Currently (as ICICI Bank (4.69 percent) and the equity market when markets metrics and factors, including of September 2020), the net HDFC Bank (4.47 percent). Ihab are trading at high valuations. It is interest rate movements and equity exposure of the fund Dalwai and Manish Banthia are the category you can invest a global financial conditions. stands at 62 percent. the fund managers of this lump-sum in at any point of time, scheme. given that the asset allocation is The scheme has maintained Category beating returns structured accordingly and allocation to equities (net equity The scheme has done well over a Typically, balanced advantage aimed at providing better and arbitrage positions) at 69-79 long period of time. Over the last funds invest across equity, debt investor experience.” Ideally, percent over the past three three-year and five-year time and arbitrage. The equity plus have a minimum of five years’ years, to give investors the periods, the scheme has given arbitrage portion of the portfolio duration in mind if you wish to equity taxation advantage. In 7.04 percent and 9.39 percent is typically maintained at over 65 invest in IBAF. rising equity markets, the fund returns, respectively. But rolling per cent. Hence, they are treated manager has gone short returns are a better way to as equity funds for tax purposes. (derivative position) on most of assess a fund’s performance as the equity exposures to make the they covers multiple entry and

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 10 TARAKKI TIMES, NOV 2020 - JAN 2021 Fund Review Three reasons to invest in BAF now Wealth Forum | November 19, 2020 Over the last decade and more, many of you, our esteemed partners, 2) Exceptional Volatility Management Skill have been with us through the journey of popularising dynamically managed asset allocation schemes such as ICICI Prudential Balanced While there are opportunities in the market, there is a heightened Advantage Fund, among the investors, pan India. During Scheme re- element of risk as well, owing to various global developments which categorisation, it was heartening experience to see market regulator could lead to market volatility. So, we believe it is important to strike a SEBI recognise it as a separate category of hybrid schemes, thereby balance which a product like balanced advantage offers. Here, ICICI marking the importance of having such an offering. Today, most of the Prudential is best placed to take advantage of such situations because fund houses have this product in its offering and are attracting more of its counter cyclical approach. and more investors into the fold of asset allocation schemes. We are happy to share that thanks to your efforts, several of the investors Within this category there is a wide variation in the asset allocation associated with ICICI Prudential Balanced Advantage Fund could be at practices followed by various fund houses. Some fund house may ease even during the most tumultuous times seen in the equity follow market metrics such as price-to-earnings (P/E) ratio, while some market, during the year 2020. others may use a combination of P/E and price-to-book (PB) or trailing P/E of a particular index or in-house propriety model which helps Over the past two years, during the Diwali time, we communicated on decide on the allocation to equity and debt. In case of ICICI Prudential, an investment idea – SIP- with our partners and investors. For this year, the allocation is model based which is predominantly based on P/B the theme we have decided on is Yeh Diwali BAF Wali. The idea is model. As a result, the performance of the schemes too will vary. The primarily driven by the fact that markets shall remain volatile given model which ICICI Prudential relies on is that of a time tested one, where we stand today in terms of market valuations, the overall across market cycles, and has clocked in over a decade. economic environment prevailing on account of Covid situation, the very low interest rates across the globe and the backdrop of one of the best bull rallies that we have witnessed since 2009 which is liquidity driven. As you all would already know, ICICI Prudential Balanced Advantage Fund is considered as a pioneer in its category. The fund enjoys the distinction of being one of the few funds which has seen multiple market cycle. In fact, the model on which the equity allocation is made complete a decade of its existence. Among the various reasons why an investor should invest into balanced advantage category, presented below are the three compelling reasons why we strongly believe investors must consider this theme now. 1) Time for a counter cyclical approach Through the above table, it can be seen that ICICI Prudential Balanced Advantage Fund was able to perform what American investor and The core idea of this balanced advantage category of scheme is to be endowment fund manager, David Swensen, said, \"Establishing and counter cyclical in nature. This is the exact opposite of what investors maintaining an unconventional investment profile requires often tend to do. Generally, retail investors are comfortable investing acceptance of uncomfortably idiosyncratic portfolios, which into equities when the market rallies. This effectively means that an frequently appear downright imprudent in the eyes of conventional investor is buying at expensive valuations. As a result they end up wisdom.\" buying high and selling low, which is the exact reverse of what needs to be done. All of this translates into less that optimal investment The best example of this was seen during the markets correction seen experience. during March 2020. It presented one of the best opportunities to take exposure to Indian equities. However, investors were fearful and By investing in an ICICI Prudential Balanced Advantage Fund, one can avoided investing. At such a time, a balanced advantage fund being be rest assured that the fund will alter equity allocation between 30% counter cyclical increased their equity exposure and make gains for and 80%, depending on market valuations, as can be seen in the chart the investors in the months ahead. below. For this purpose, metrics such as price-to-book ratio among others is used. The fund will increase its equity allocation when the During the COVID-19 led market corrections, the equity allocation of valuations are reasonable and park the remaining in debt and when the the scheme rose from 46% in December 2019 to 74% in March market rallies i.e. when valuations become expensive, such a fund will 2020.Therafter, as the market recovered, equity allocation has been increase its allocation to debt. As a result, an investor finally gets to reduced to 62%. As a result, even though the benchmark indices are buy low and sell high through this fund. Keeping in view the long term still in red on a year-to-date basis, as of October 2020, several of the benefits, this product is well placed across risk profiles. balanced advantage funds are in the green, making gains for their investors. We believe it is important to strike a balance which a product like balanced advantage offers. Source: NSE India & MFIE, As on 30th October 2020. The in-house valuation model starts from March 2010 onwards.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 11TARAKKI TIMES, NOV 2020 - JAN 2021 3) Better Risk Reward In effect what ICICI Prudential Balanced Advantage Fund helps an investor with is through generating wealth by capturing some of the Owing to 'buy-low, sell-high' strategy, the fund has managed to market upside in an up trending market and ensuring downside generate decent volatility-adjusted returns in the past. The scheme protection during instances of market correction. has delivered 11.3% returns vs. 9.5% returns of Nifty 50 Index with average equity allocations close to 56% since March-2010. Over the last decade, when the market had witnessed several roller coaster rides, on an absolute basis, the fund has managed to In effect, the fund has managed to deliver equity like returns even with outperform Nifty 50 TRI, even with reduced equity exposure. reduced equity exposure. If an investor would have initiated a monthly SIP of Rs. 10,000 into this fund a decade back, then an investment of Rs. 12,00,000 would be worth Rs. 20,28,936 today. Source: MFIE, Period: 2nd March 2010 to 30th October 2020. Returns (%) are CAGR. Past Source: MFIE, Past performance may or may not be sustained in future. The performance of the performance may or may not be sustained in future. The performance of the scheme is scheme is benchmarked to the Total Return variant of the Index. ^FYTD = Financial Year Till Date benchmarked to the Total Return variant of the Index. The in-house valuation model starts from March 2010 onwards. IPRU BAF = ICICI Prudential Balanced Advantage Fund – Growth. Riskometer DYNAMIC ASSET ALLOCATION FUNDS BALANCE THEIR EXPOSURES BETWEEN EQUITY AND DEBT Five mutual funds that make the most of bull runs and cushion downside Economic Times| November 27, 2020 Investors confused about the globe and the backdrop of one of ICICI Prudential Balanced Advantage Fund direction of the stock market in the best bull rallies we have the wake of its record-breaking witnessed since 2009 which is Asset under management: `26,123 crore run could consider balanced liquidity driven,” said Sankaran advantage funds, which invest in Narem, Chief Investment Officer, Fund Manager: Ihab Dalwal / Manish Banthia / a mix of debt and equity. These ICICI Prudential Mutual Fund. He Rajat Chandak / Sankaran Naren funds allocate less to equities believes it is apt to make lump when market valuations appear sum investments in such Top 3 equity holding: Reliance, ICICI Bank, HDFC Bank expensive, and vice versa. The products now. These funds equity component varies from enable investors to do away with 3-year/5-year return (%): 8.28/10.49 30% to 70-80% depending on timing the markets as this market conditions. strategy has built-in profit The largest fund by assets under management in this category, the scheme booking at higher equity adjusts its equity allocation based on the price-to-book-value ratio of the market, “Markets shall remain volatile valuations. ET takes a look at five with rebalancing done daily. Given the sharp rise in the markets, the current given where we stand today in dynamic asset allocation funds equity allocation is at 58.5%. The fund's equity exposure can range anywhere terms of valuations, the overall based on recommendations by between 30% and 80%, with debt making up the rest. The equity portion is economic environment financial advisors. mainly invested in large-cap stocks while the debt portfolio is actively managed prevailing due to Covid-19, very with the fund manager taking both duration calls as well as investing in below low interest rates across the AAA-rated paper to earn higher accruals.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 12 TARAKKI TIMES, NOV 2020 - JAN 2021 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Regular Investing is the key to Wealth Creation! Banita Jain Deepak Jain Ashvvy Investments Pvt. Ltd. Banita Jain, Director, Ashvvy InvestmentsPvt. Ltd., had her humble beginning in the advisory space when she registered as an agent to the Govt. Small Savings Schemes in the year 2000. The entry coincided with her younger daughter's birth, as her uncle, an insurance agent himself, advised her to venture into this space as an additional income source. While Banita was reluctant initially, she found support in her husband, Deepak Jain, who was then in Govt. service. As the small savings schemes enjoyed the investors' trust in terms of safety and guarantee of returns, it was easier for him to convince relatives, neighbors, and other social circles to invest in different schemes. With the passage of time and as her experience grew in the financial space, Banita realized the need to diversify into mutual funds to increase her offering. She started with being a sub-broker of one of the leading broking firms in 2005 and then got her own ARN code in 2007 after passing the necessary exams. Banita shares her initial times into mutual fund advisory as 'enriching' as she was heartily guided and supported by the mutual fund houses' staff. As her mutual fund advisory business grew, she surrendered the agency business of small savings schemes in 2010 with an intent to focus on mutual fund business solely. Her husband also took voluntary retirement from his Govt. job in 2017 and is now helping her provide value-addition to the clients' investment portfolios. Talking about her journey, Banita adds, \"my earlier experience in Govt. Small Savings Scheme was helpful, as the clients were habitual of regularly saving Post Office Recurring Deposits. Convincing them to save regularly was easy, and all I had to do was to help them understand the utility of investing through mutual funds.\" As of date, Ashvvy InvestmentsPvt. Ltd. manages AUM (Assets Under Management) of around Rs. 100 crores, with a SIP book of around Rs. 1 crore. The Covid-19 pandemic outbreak in March 2020 induced a heavy correction in the equity markets in March 2020, and her clients were affected too. However, regular discussions with the clients helped prevent most of the SIP discontinuations. Banita shares, \"we interacted with our clients more often than ever during those times. While some of our clients were facing genuine cash flow issues, we advised them to pause the SIP instead of discontinuing the SIP. This helped them automatically restart their investing journey post the pause period. We have been regularly following up with the clients who discontinued their SIPs. More than 60% of such SIPs have already restarted.\" The firm is a keen believer inregular investing across asset classes and market cycles, and the firm encourages its staff to help their clients adopt this habit. Banita shares, \"The focus stays on helping the clients save regular incomes every month. Consistent investing helps a lot, especially for the middle-income segment, as small becomes bigger with consistent savings. I generally tend to discuss the financial strategies with my clients with their spouses. I have experienced that investment plans made with mutual discussions are often harder to leave mid-way.\" Value-added services like regular discussions for financial matters, hand-holding for financial goals, periodic portfolio review, etc., have also helped build the firm's client network. The firm makes appropriate use of digital technology to monitor their clients' portfolios and ensuring that their clients stay aligned with their financial strategies. Social media marketing and print advertising have also helped them garner business, but as per Banita, client referrals have worked the best for them. She shares, \"when a client has a pleasant investment experience, they don't hesitate from referring their friends and family for investment with Ashvvy.\" From humble beginnings to being an inspiration amongst her social circles, Banita has always advocated the importance of consistent efforts and regular savings. This success mantra of consistent investing continues to stay universal across the financial plans. Happy Investing! ARN - 172057

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Tarakki Corner 13TARAKKI TIMES, NOV 2020 - JAN 2021 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Sugandh Goenka Stay Wealthy Investment Services Ensuring his clients are informed while always working towards their goals Based in Lucknow, when Sugandh Goenka was first asked to move to Noida, he decided to start his own business given the customer base he enjoyed. On a trial basis, he decided to give the business a start, and spent over 8 years working in the city. With the business of 60-70 families, he wished to build upon that going forward, and so he did. Slowly and steadily, while ensuring that the existing customers are well-informed and updated, it was a challenge to shift them, but it was the trust that enabled him to rightly do so. Another challenge that he found was to juggle between Lucknow and Kanpur for initially, he did not have staff to do so, but it has now evolved. Not a newbie in the field, he acquired clients by non-traditional methods and not sticking to cold-calling, among other things. He developed an identified user-base of 150 clients, and targeted those families, of which most became a part of his business which eventually lead to more business via reference. He feels, ''Existing clients are the biggest source of business. Because I handle HNIs, I did not opt for cold-calling and hiring RMs, because I feel that doesn't work out.'’ Currently, he handles assets worth 185 crores under mutual funds. As a company, they don't just look into financial advisory but also deal with the client's income and expenses, cash flow, finding out the net worth and asking them to keep a control on expenses if needed, among other things. They also try to find out the risk profile of the clients, advising them the right instrument to invest in as not everyone has a profile that fits high risks, but depends on the financial situation, while keeping in mind the end goal. He credits his biggest learning to never taking the clients lightly and work in the right director. He says, ''When you are proving yourself, you can never fail in your life. I work very hard with the client and provide them satisfactory help, and that is one reason when I work as an entrepreneur, 50- 60 families were ready to come hands on with me. If I did not do that, they wouldn't have come with me when I started on my own.'' While doing all of this, he also ensures that the asset allocation is taken care of which are in line with their goals. In volatile times, it is the virtual aspect of their business that has enable him to keep up with the clients, in addition to the dedicated mobile application. While he understands that the COVID period was a challenge, they could work through the screens while keeping the clients informed about the market situation. ARN - 102841

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 14 TARAKKI TIMES, NOV 2020 - JAN 2021 Channel Partners Distributor Insights The Art Of Investing Through SIPs Outlook Money | December 2020 Rajesh Bansal beneficial over a complete desired product at market price? opportunity to make any money market cycle. from their investment. Managing Director Most people will answer “a”. The Midas FinServe Pvt. Ltd. The very objective of SIP reason being, they are getting Looking ahead Investment is to reap gains from what they wanted at a discount. Several investors, off late, have Rupee Cost Averaging. When They are paying much less than India and the world at large is been grumbling about the poor equity market turns range bound the original MRP of the product. going through testing time due performance of their equity or enters a phase of market to the rampant spread of the investments especially through correction, investor end up Negative return generating Coronavirus pandemic. Growth mutual funds, even over a three accumulating more unit of the SIPs: A boon across the globe has crashed to year time frame. Many of them same scheme, without any multi decadal lows and the would have been investing increase in outgo. On an emotional level, the outlook too remains challenging. through SIP as well. At a time statement made here may seem What needs to be remembered when the benchmark indices There is an old Wall Street joke blasé. However, data suggests at such times is that India such as the Sensex and Nifty where a newcomer asks a otherwise. The recent CRISIL- continues to remain one of the have been generating solid veteran, “How do I make money AMFI report indicates that the few bright spots globally in terms returns, the fund performance on the stock market?” The old probability of generating more of a solid domestic base. may have been not much to veteran replies, “That’s the than 10% return is 97.5% over a speak about. But worry not. I simplest thing, Buy low, sell 10-year time frame. In fact there In the light of this, the best would say investors have high.” So the young man presses are funds which have generated approach is to continue with reasons to be happy if SIP is not further, “Yes, but how do I do over 26% returns in 10 years. one’s existing SIPs. There is generating returns. This is that?” The reply comes, “That’s absolutely no point in stopping because an investor often very difficult. It takes a lifetime to If the cause of low/negative regular investment because of forgets that in volatile markets, learn.” Now, that not a great joke, returns is the overall market valuation concerns or fearing one gets the opportunity to but it is a fact. The most common sentiment, or underperformance market correction such as the accumulate equities at lower interpretation of ‘buy low, sell in some of the fund’s holdings, ones seen in mid and small caps levels, which proves to be very high’ is to buy when the markets then the sanest approach is to in 2019. have fallen. wait for the storm to pass i.e. to wait for the market to stabilise, The current market is providing So to understand this better let before making any hasty long term investors the occasion us just ask ourselves a question, decision. In the meanwhile, fund to accumulate units at lower when do you buy more? manager too will be moving their prices and thereby, benefit from allocation in order to reduce rupee cost averaging. In fact, a) When you get your favourite or losses. investors with investible sur- desired product at discounted pluses should top-up their price? For example: SIPs invested existing SIPs with lump sum during the period January 2010 investments during steep market b) When you get your favourite or to August 2013 (~3 years) corrections. This will help them generated negative returns. achieve their financial goals However, if the investor would sooner. To conclude, it is impor- have held on to their investment tant to stay focused on the long for two more years, then the term, for as market cycles go, portfolio would have generated this too shall pass. Happy double digit returns. investing! This shows that investors who (Author is Managing Director, lost patience in 2013 and Midas FinServe Pvt. Ltd) redeemed made their losses permanent and lost out on the

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Channel Partners 15TARAKKI TIMES, NOV 2020 - JAN 2021 Distributor Insights Asset Allocation: The Evergreen Strategy Outlook Money | December 2020 Deepak Pahwa all your requirements, you need order to achieve all your financial dering when to exit some of your to create a portfolio that has a goals, it is important to have equity positions and trying to Founder mix of multiple asset classes. varying assets in your portfolio time the market you simply need Deepak Investments This is called asset allocation. that can potentially generate a to adhere to your asset allocation range of returns. strategy. If the proportion of As an investor you would have Why Asset Allocation equities in your portfolio exceeds several goal and aspirations. 2. Mitigate portfolio risk: 60% then you must simply sell Each goal would have its own Asset allocation is an investment If you have only low risk assets in some equities to bring it back to unique time-frame and would be strategy that entails creating a your portfolio then you face the 60%. This way you will be able to dictated by your return require- portfolio that invests in multiple risk of not meeting your financial book profits as well. ments and risk profile. Take for asset classes in such a way that it goals. If you have only high-risk example, three goals. The first is meets your return requirements assets in your portfolio then you 4. Overcoming behavioural saving for retirement with a 35- while adhering to your risk face the risk of loss of capital. A biases: year time frame, the second is constraints. Different asset good way to mitigate overall We are often influenced by buying a house with a-5-year classes have different risk-return portfolio risk is by spreading behavioural biases that impact time frame, and the third is profiles, i.e., their return potential investments across multiple our ability to make optimal protecting your portfolio during and risk vary. At the same time, asset classes such that the investment decisions. However, adverse market conditions. Each most asset classes have little or overall risk of your portfolio gets adherence to a robust asset of these goals is unique and will no correlation with each other. balanced and is aligned with your allocation strategy that reflects thus require a different class of This means that they react risk profile. our risk-return requirements can investments. While equity differently to similar market help us minimize the impact of investments might meet your developments. This ensures that 3. No need to time the market: these behavioural biases on our retirement goals, your other adverse movements in any one Asset allocation entails investment decisions. Asset goals might be met with a asset class do not have a large spreading your investments allocation has always been an combination of asset classes impact on overall portfolio across several asset classes in a important part of portfolio such as say debt and gold. There returns. Asset allocation can help certain proportion or based on construction. is no single investment which you create a diversified portfolio certain weights. These weights will meet all the requirements of such that it can take advantage of determine how much money you However, in the backdrop of the growth, liquidity, regular income, positive market movements and must invest in a particular asset current environment it has capital protection and return or protect your portfolio in adverse class. They also dictate when assumed more importance. act as a one size fits all. To meet movements. you should sell certain invest- Covid has underscored the ments. For example, for the sake importance of risk management Four main benefits of Asset of simplicity lets assume that in life and in investment decision Allocation 60% of your portfolio is allocated making. Markets can be highly to equities and 40% is allocated unpredictable. In order to over- 1. Achieve the desired return: to debt. come market unpredictability The return potential of each and ensure that you portfolio is asset class would differ. While Now, in a market rally, the value prepared for all eventualities you some asset classes can of your equity investments is should considering creating a potentially generate above likely to increase. As equity well-diversified portfolio through average returns over the long- prices increase so will the asset allocation. term, there are others that proportion of equities in your generate average returns. In portfolio. Now instead of won- Margin of safety indicates the difference between intrinsic value of a stock and market value. Higher the difference between intrinsic value and market price, higher is the margin of safety for an investor.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 16 TARAKKI TIMES, NOV 2020 - JAN 2021 Fund Review mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | November 2020 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 5.06 10.15 11.07 23,486 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 8.08 7.39 NA 83 ICICI Prudential US Bluechip Equity Fund 19.44 15.39 NA 834 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 10.54 8.74 8.59 18,906 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | November 2020 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Bluechip Fund 3-month 3-year 5-year HYBRID: EQUITY SAVINGS 10.42 ICICI Prudential Equity Savings Fund 11.72 34.75 5.90 5.01 7.43 HYBRID: CONSERVATIVE 9.38 ICICI Prudential Regular Savings Fund 2.93 13.36 1.79 4.99 8.57 DEBT: MEDIUM- TO LONG-TERM 8.18 ICICI Prudential Bond Fund 4.25 12.28 9.41 7.68 8.53 DEBT: MEDIUM-TERM 9.62 ICICI Prudential Medium Term Bond Fund 2.01 6.57 11.90 8.55 8.54 DEBT: SHORT-TERM ICICI Prudential Short Term Fund 3.12 7.80 11.27 7.85 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 1.90 6.40 10.65 8.30 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 2.12 6.34 12.72 8.91 1.75 6.11 10.58 8.61

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 17TARAKKI TIMES, NOV 2020 - JAN 2021 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | November 2020 Scheme Name BL Rating YTD Absolute Trailling Returns (%) 5 Year CAGR 4.9 1 Year CAGR 3 Year CAGR 10.2 ICICI Prudential Bluechip Fund 4.1 8.4 ICICI Prudential Large & Mid Cap Fund 1.4 5.9 5.1 8.3 ICICI Prudential Multicap Fund 12.0 4.9 1.4 8.4 ICICI Prudential Midcap Fund 13.9 2.4 3.5 7.7 ICICI Prudential Smallcap Fund 15.1 11.9 1.2 8.7 ICICI Prudential Focused Equity Fund 14.1 17.3 0.0 7.0 ICICI Prudential Value Discovery Fund 4.8 14.4 4.7 8.5 ICICI Prudential Long Term Equity Fund 13.7 3.9 (Tax Saving) 4..4 6.5 5.6 6.2 ICICI Prudential Dividend Yield Equity Fund 1.7 9.2 ICICI Prudential FMCG Fund -6.5 5.6 -2.7 3.3 ICICI Prudential Infrastructure Fund -10.8 -0.1 5.3 11.7 ICICI Prudential Banking & Financial Services 51.5 -6.0 -5.6 16.4 ICICI Prudential Technology Fund 58.8 -9.8 0.4 - ICICI Prudential P.H.D Fund 0.5 55.7 25.0 8.9 ICICI Prudential Equity & Debt Fund 2.0 57.7 - 7.6 ICICI Prudential Equity Savings Fund 6.2 1.8 2.8 7.9 ICICI Prudential Ultra Short Term Fund 7.9 3.1 5.4 8.2 ICICI Prudential Savings Fund 5.9 6.8 7.5 7.3 ICICI Prudential Money Market Fund 10.2 8.4 8.1 8.6 ICICI Prudential Short Term Fund 10.1 6.4 7.4 8.3 ICICI Prudential Medium Term Bond Fund 11.2 10.6 8.5 8.7 ICICI Prudential Bond Fund 10.9 10.7 8.1 9.8 ICICI Prudential Long Term Bond Fund 11.4 11.5 8.8 9.8 ICICI Prudential All Seasons Bond Fund 10.0 11.6 9.7 8.6 ICICI Prudential Corporate Bond Fund 9.2 12.3 9.1 8.4 ICICI Prudential Credit Risk Fund 8.8 10.5 8.7 8.7 ICICI Prudential Banking & PSU Debt Fund 9.8 8.5 9.5 8.1 ICICI Prudential Gilt Fund 12.1 13.2 9.5 9.8 ICICI Prudential Regular Savings Fund 9.0 9.5 8.0 9.5 ICICI Prudential Balanced Advantage Fund 7.6 8.3 7.4 9.3 ICICI Prudential Child Care Fund (Gift Plan) 1.4 2.6 4.0 7.6 Source: NAV India; NAV for the growth option as on 27-11-2020. Past performance may or may not sustain in the future. It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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