Tarakki Times English January 2018

A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS MUMBAI | JANUARY 2018 | PAGES 10 Professional Views India’s largest mutual fund says time to focus onPg. 2 risk and volatilityMarkets in midstof liquidity boom;time to be cautious S Naren, ED & CIO ICICI Prudential Mutual FundPg. 3Large-caps willreport bigger gainswhen earningsimprove S Naren, ED & CIO ICICI Prudential Mutual FundPg. 4 Bloomberg Quint | January 01, 2018New investors should get in via Nimesh Shah For new and old investors, real estate is dead and gold isSIP route MD & CEO would it be prudent to assume not what it used to be. ICICI Prudential Mutual Fund that volatility will be a big Fund Reviews factor in 2018, something that I am a firm believer in asset The time is right to bring the has been absent in almost all of allocation. I don’t think thePg. 5 conversation about risk and 2017. purpose is very different as volatility back on the discussion everyone is interested in wealthICICI Prudential Value Discovery Fund table, according to the head of While we say that there are many protection. There is a India’s largest mutual fund by investors coming in, 80 percent psychological barrier of 7Stellar long-term track record assets. of our assets under management percent. When the interest rate (AUMs), or our new sales come on a three-year deposit hoveredPg. 6 Investors seem to have all but in from existing customers. So, around 7 percent and went forgotten about them and are in terms of customer acquisition below that, I have not been ableICICI Prudential Balanced Advantage relying on the TINA (there is no we have a long way to go. People to explain that today’s 7 percentFund alternative) factor in equity have forgotten that equity is is better than the 9 percent investing - be it via mutual funds volatile. We have been trying to because when you were gettingMake market dynamics work or direct investment in stocks, educate people on a continuous the latter from the bank FD,for you Nimesh Shah, managing director basis that it cannot be a one-way inflation was 11 percent. But and chief executive officer at street. today inflation is 4 percent.ICICI Prudential Dynamic Plan ICICI Prudential Mutual Fund, said on Bloomberg Quint’s The Do you think mutual fund If I can request you to tell us theCautious stance provides Mutual Fund Show. These investors should be wary of nature of the balancecomfort factors become more pertinent valuations and be prepared for advantage fund. Would it as the market goes higher, he a different kind of asset invest a certain corpus strictlyPg. 7 cautioned. “The market is allocation strategy, if possible? into equity, certain portions expensive, even if it’s not in the strictly into debt, and does itICICI Prudential Value Discovery Fund bubble territory.” One basic thing is till 2016, the still satisfy the tax advantage markets were relatively fairly an equity fund gives?Size matters, valuation more so Shah advocates investing money valued. 2017 onwards, in balanced funds which provide valuations have gone up. We Taxation law in the country saysICICI Prudential Focused Bluechip a mix of equity and debt and sees have an internal valuation index that if 65 percent is invested inEquity Fund investments in the category that considers the price-to-book equity or equity related becoming a trend in the coming ratio and various other factors of instrument, then it becomes anOne Fund Review three years. Here are edited the market at that point of time. equity fund. Firstly, we excerpts from the conversation. Whenever you buy into fundamentally decide based onPg. 8 expensive stuff, we have seen the valuation level, what shouldList of ICICI Prudential While 2017 has been a great the three years return. When the be the equity levels. In FebruaryFunds in Mint year, there’s always a index is where it is today, in the 2016, when the market was low,SIP Top UP possibility that 2018 might not next 3-5 years the returns will be at 23000, the equity levels of this be as great as 2017. There is moderate because people are fund was as high as 77 or 78Pg. 9 always a possibility of looking at 25-30 percent returns p e r c e n t . To d a y w h e n t h eETW Funds 100 downside, so people must keep in the last one year. They cannot markets are at this level, theSystematic Investment Plans this in mind before investing? extrapolate it further, despite equity levels are only 37 percent profitability. in this fund. But to qualify for a Tarakki Corner We are getting into an expensive taxation advantage, I need to Pg. 10 market, it’s not a cheap market Shouldn’t mutual fund have 65 percent into equity anymore. So, 2018 will be a time investors have a different related instruments. But the Pankaj Ladha of investing, when the markets thought process, as compared remainder is invested in equity ARN - 63097 are relatively expensive. We at to pure play equity investors, today, 30 percent is invested in Kota ICICI Prudential believe that it’s who come on air and speak arbitrary funds. an expensive market but not a about how there is no bubble market. alternative to equities, becauseThe 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, JANUARY 2018 Interview Markets in midst of liquidity boom; time to be cautious India has been one of the best-performing equity markets across the globe, with a rally of over 25 per cent in 2017. S Naren, Executive Director and Chief Investment Officer of ICICI Prudential Mutual Fund, tells Puneet Wadhwa the country will remain an attractive market for foreign investors despite the rich valuations. Business Standard | December 10, 2017S Naren positive on the Indian market, over the next 18 months, a structure. The power sector isED & CIO and the upgrade will aid in marked improvement in going through low capacityICICI Prudential Mutual Fund strengthening one's conviction corporate profitability is likely, utilisation. With an uptick in the on the India story. with pick-up in capacity capex (capital expenditure)How will India fare in 2018? utilisation across sectors. Over cycle, we believe it could register Mutual fund (MF) flows into the the next two years, we expect higher top line growth andWe are in the midst of a liquidity equity segment has crossed `1 nearly 30 per cent growth in earnings. Also, governmentboom, with huge inflow into lakh crore in 2017. What is the earnings. Banks, capital goods, initiatives such as 'Power for All'equities from both, domestic outlook for next year? p o w e r, t e c h n o l o g y a n d by 2018 and scaling up of windand foreign investors. While pharmaceuticals are likely to lead power capacity additions in thethese are no longer cheap, we The trend will continue in 2018, this revival. future could benefit.are positive on the markets, as with retail investors preferringwe believe corporate earnings financial assets over physical Your sector preferences at the Banks and finance (barringwill catch pace over the next 18 assets. With increased current levels? Any contrarian corporate lending banks),months. That said, liquidity is awareness around MFs as a bets? automobiles and consumer non-likely to remain one of the key product, investors are likely to durables are the underweightdrivers for the rally. approach the capital markets Pharmaceutical and health care pockets, due to expensive valu- through systematic investment services, transportation and ations. In automobiles, theIndian markets are in fine fettle sector earnings growth is likelycompared to other emerging Over the next two years, to moderate from the currentones, given the structural we expect nearly 30 levels, while in fast-movingchanges underway, positive for per cent growth in consumer goods (FMCG), thethe economy. India will remain an earnings. Banks capital margins could be fairly range-attractive market for foreign goods, power, technology bound due to explicit price hikesinvestors, despite the rich and pharmaceuticals are and modest cost inflation.valuations. likely to lead this revival. Pharma and information technology are our contrarianHow do you see policy action plans. Geopolitical tensions and power are the pockets we are bets.by various global central banks crude oil above $65 a barrel could overweight on. When it comes toover the next year? Are the dent the sentiment. pharma, at this juncture, we Your advice to investors at thismarkets pricing this in? believe the sector multiples are stage? Key takeaways from the at an all-time bottom and we seeThe liquidity fuelled by global September quarter earnings a case for both earnings potential The market is in a mid-cycle andcentral banks is likely to come off season? and re-rating opportunity in two one cannot invest blindly atover the next year. This could to three years. current levels, as valuations aretighten the money markets, The transient effects of demone- no longer cheap. This is a time tothough in a limited manner. It is tisation and goods & services tax In transportation, ports and the exercise caution and adhere todifficult to assess if the capital (GST) implementation were aviation industry are poised to asset allocation. Over the pastmar-kets are factoring in such a visible. The earnings cycle is yet witness expansion, due to the two-three years, the marketspossibility, as markets across to play out in India. However, government thrust on infra- have been on an uptrend andregions have been consistently investors who came in then havegoing up. not yet seen a down-cycle. This could see them go overboard onHas Moody's been over- equities, owing to the belief thatoptimistic about pick-up in equity is a riskless asset class,economic growth? which is worrying.India is one of the best long-term Investors should now considerstories, over the next 20-30 balanced advantage/dynamicyears. So, yes, Moody's is right asset allocation categorythat India is one of the best schemes for incrementalstructural stories. On foreign allocation. Pure large-capinvestments, FM (foreign benchmarked funds are anotherinstitutional investors) have been category one could consider.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, JANUARY 2018Large-caps will report bigger gainswhen earnings improveCNBC TV-18 | December 08, 2017Exports are likely to be a big Just to come back to the point investors are only looking at S Narentheme over the next three years, you were raising that we equities and as though there is ED & CIOled by technology and touched 10,000 on July 26 and no other asset class to invest ICICI Prudential Mutual Fundhealthcare, according to if you look at it from that point, into? Would that mean that youS. Naren, Executive Director and clearly not too much of gains would recommend investing in Getting back to equities. LastChief Investment Officer of ICICI have been notched up. debt funds as well in 2018? year your big call was telecom.Prudential Asset Management However, at this moment You are a contra buyer and weCo. Ltd. The asset manager is where would you enter then? Is What worries me at this point of have seen a huge rally in Bhartialso upbeat on telecom, its big it a churn? Is it say a movement time is that having been in Airtel. Are you still playing thatcall last year, for the next three from non-banking financial equities for 28 years, I have seen theme?years. companies (NBFCS) to public downs in the market. sector banks or something like We are big believers in thatIn an interview, Naren said the that you recommend? Eighty percent of mutual fund theme for the next three yearsinteresting thing to note about investors have not seen a 10% because in my opinion mostthe market is that the six-month If I look at it from a scheme point correction in equities. So they people in this generation do notreturn of Nifty is just 4%, while of view, we have always been in consequently think equities as care whether they hold a purse;most people would say it should favour of categories like an asset class will either give they are happy as long as theybe in double-digits. So, he said, balanced advantage fund for plus 10 or plus 7 or plus 4 have a mobile phone with them.while the feeling is that of a bull quite some time now. From a because they have not seenmarket, in the last six-months the capitalization point of view, we 2011 or 2008 or earlier bear So consequently I believe thatlarge-cap index return has not have always believed in large- markets. telecom as a sector is a verybeen commensurate with the caps, but as you know, the last good sector to own. Having saidmood of the market. one-one-and-a-half year, while So my thesis has been that that, is the sector as cheap as it we have believed in large-caps investors should not invest in was one year back? Is there fearNaren said in the last 12-18 over mid-caps and small-caps, debt for the sake of debt returns. in the sector as it was one yearmonths, small and mid-caps continuously mid and small-caps back? The answer is no, becausehave been outperforming large- have been outperforming large- I do not think there is a big return the few consolidated players,caps continuously. However, he caps. expected from debt funds, if you people are very confident aboutbelieves when the cycle of invest today but there is a and so it is no longer a bigearnings improves, large-caps So, that is the reality and I would necessity to invest in debt contrarian play. Is it a structuralwould report bigger gains. still tend to believe that when the because it is certainly a much play for the next three-five years?Edited excerpts: cycle for earnings improves, I more capital protection product I seem to think so. think large-caps have a much compared to equity and theWhat are your thoughts on bigger way to go. reason for investing in debt Give me a monosyllabicwhat has happened of late, I funds is not return but capital answer-what is the nextthink the last time when you Part of the reason for midcaps protection because you are not contrarian bet?were here, you told us that the doing well is that while the local likely to see minus 10 or minustime is right to maybe shift to investors have been very 15 in debt. I think people tend to believe thathybrid funds and not for pure exuberant, the foreign investors we can create a big boom onlyequity funds? have hardly been exuberant in So at the most you will get lower out of consumption. My view is 2017. returns but not negative returns that I do not know whether thereFrom a market point of view, we over medium period of time. is 2018 call but over the nexthave believed that while the If you look at flows in 2017, they three years exports has to be amarket is not in end cycle, the are very small compared to what So what we have been trying to good theme because you cannotvaluations and sentiment we used to see in 20102013. So tell people that you either invest keep buying mobile phonesindicators were no longer very we still believe in large-caps, and in equity and debt funds without an export story also. Soattractive. From that point of we still think that if people have individually or you invest in a my bet is exports, led byview, we would want more to invest for the long term, you category like balanced technology and healthcare. But Ivolatility and luckily there has either choose a category like advantage fund because debt am not too sure whether it is abeen a bout of volatility in the balanced advantage fund or a doesn’t appear bubblish. one year call or a three year call.recent past. What was very theme like largecaps at this point In fact, no one is interested ininteresting to me is that the six- of time. This has been our debt fund at this point of time,month return in Nifty is just 4% consistent view and I would say whereas in equity the kind ofand if you asked, most people in while the volatility part has been flows as most of you know, I dothe market, they would tell you working recently, I don’t think the not think anyone would havethat the six-month return should large-cap versus mid-cap and expected that the local mutualbe double digit. small-cap has been. fund industry will get Rs20,000 crore per month, which is theSo, while the feeling is that of a I want your views on debt as current run rate which showsbull market, the last six months well because I was reading one that local investors are exuberantlarge-cap index return is not of your recent interviews in equities and lukewarmcommensurate with the mood of where you said that you are towards debt.the market. quite worried about howThe 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, JANUARY 2018 InterviewNew investors should get in via SIP routeET Wealth | December 29, 2017The banking fund category had a sub-sectors combined with Also, considering valuations are these issues will soon be behindgreat year in 2017. ICICI strong bottom-up rigor led the stretched across some of the us. Credit growth is likely toPrudential Banking and Financial fund to perform well. sub-sectors, one should invest improve, now that inflation isServices Fund tops the chart with only with a long-term view and inching up and economic outlook53 per cent returns in one year . The entire banking fund should refrain from investing is improving. Similarly, theET.com Mutual Funds spoke to category had a great year. What solely based on the past government and the RBI areVinay Sharma, fund manager of is your outlook for 2018? What performance. entirely focused on NPLs. Overthe scheme, to find out his is your advice to the new the next three to four quarters,outlook on the sector. Edited investors entering banking Sector schemes are generally we could see these issuesinterview. funds at this time? not recommended to regular improving. investors. Are banking fundsICICI Prudential Banking and Indian banking sector, especially any different? Have you started betting onFinancial Services Fund has the large-scale banks, went PSBs? Will recapitalization takebeen the top performer in the through a phase of NPA-related Sector schemes are basically care of the NPA issuesbanking fund category. At 53 challenges over the last couple recommended whenever the completely?per cent, the returns have been of years. Now, this phase is outlook on a particular sector isexceptional. What was your about to peak out. Once this positive. However, when it We have started taking collectivestrategy? phase is through, the large-scale comes to banking and bets on PSBs considering their banks could do well in the infrastructure, these two attractive valuations comparedThe Indian banking sector is a medium term. While there are pockets are largely diversified in to some of the other sub-sectorsmix of various sub sectors like few pockets in BFSI where nature. Banking as a theme has in the banking and financiallarge universal banks, retail valuations are stretched, been diversified across various space. These banks are comingbanks, different NBFCs focused particularly, retail- oriented new sub-sectors emerging such from a depressed earnings cycleon housing, retail and rural NBFCs, but when it comes to as exchanges, insurance and and, as the cycle turns, earningssector, insurance companies and large banks the valuations are asset management companies could surprise positively.other wealth management reasonable. which are now getting listed.companies. Our approach for Bank recapitalization effectivelythis fund is to invest in a mix of We believe the cycle is just about Going forward, we could see helps in identifying the problemsall, depending on the sub-sector to turn and so, we believe possibilities of fin-tech and creating sufficientoutlook. As banking is outlook is promising. For new companies to getting listed. As provisioning comfort to banks.dependent on macro economy, investors entering the banking we see more sub-sectors Earlier banks did not havewe try and identify which sub- fund, we would recommend emerge, the volatility in the sufficient capital to grow whilesectors are likely to perform well them to invest via the SIP route. sector could reduce. This aspect simultaneously solving NPLin the medium term, and then sets banking, infra as a sector issues. Now they have sufficientcollaborate the sub-sector view Many new investors are apart from others. headroom to focus on both thewith bottom-up stock picking. investing in banking funds with aspects. With accelerating great return expectations. Banking sector has witnessed a growth, NPL issues willLa s t y e a r, w e w e r e q u i t e What is your advice to them? lot of disruptive changes. Are the increasingly look small inoptimistic on large universal bad days behind? percentage terms.banks and some financial One must understand that BFSIcompanies, which gained from is related to economic growth There were two key factors: NPLthe increased acceptance of and most of the companies can issues and credit growth whichfinancial assets over household only grow in line with nominal were dragging the sector, thussavings. So, our positive two GDP and other macro factors. far. We believe going forwardThe 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 5TARAKKI TIMES, JANUARY 2018 ICICI Prudential Value Discovery Fund Stellar long-term track recordET Wealth | December 25, 2017 ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.HOW HAS THE FUND PERFORMED? BASIC WHERE DOES THE FACTSWith a 10-year return of 15.26%, the fund has delivered twice FUND INVEST?the category average return (7.84%) and 25-times the benchmark DATE OF LAUNCHreturn (6.34%). Portfolio asset Fund style 16 Aug 2004 allocation boxGrowth of `10,000 vis-a-vis category and benchmark CATEGORY 1.25% Debt & cash Growth Blend Value Fund Equity SMALL CAP 4.10% `41,394 TYPE`10,000 Small Medium Large Large Cap Category 14.19% CAPITALISATION AVERAGE AUM 84.56% `21,262 MID CAP `17,187.61 cr LARGE CAP INVESTMENT STYLE Equity BENCHMARK 95.90% S&P BSE 500 Index Index I The fund currently takes a heavy large WHAT IT cap tilt, but is a multi-cap fund. `18,489 COSTSDec 2007 Dec 2009 Dec 2012 Dec 2015 Dec 2017 NAVs* GROWTH OPTIONI The fund has established a healthy As on 19 Dec, 2017 Top 5 sectors in portfolio (%) track record of outperformance. `145Annualised performance (%) Fund DIVIDEND OPTlON Financial 17.70 Nifty 50 Index Technology 15.34 Category average `34 12.49 Energy 12.02 MINIMUM INVESTMENT Healthcare 10.45 Construction `1,000 34.78 I The fund has diversified reasonably across different 30.59 MINIMUM SIP AMOUNT sectors, with a bias towards contrarian bets. 21.75 20.30 `500 14.24 14.38 11.19 11.90 10.84 EXPENSE RATIO (%) Top 5 stocks in portfolio (%)8.01 10.84 9.24 1 year 3 year 5 year 2.11 Sun Pharma 10.31 6 month Larsen & Toubro 9.17 EXIT LOAD 7.65 Wipro 6.16 1% for redemption HDFC Bank 5.26 within 365 days NTPC *As on 19 Dec, 2017I The fund has delivered strong outperformance As on 19 Dec, 2017 over longer time periods.Yearly performance (%) I The fund now runs a compact portfolio with large positions in high conviction funds.73.76 HOW RISKY IS IT? 36.96 35.21 5.44 -0.82 -1.84 4.61 3.78 4.46 21.57 34.12 29.76 Standard Deviation (%) Fund Category Index 2014 2015 2016 2017 Sharpe Ratio 13.61 13.62 13.74 0.48 0.36 0.43 FUND Mean Return (%) 10.52 9.26 10.28 MANAGER Based on 3-year performance.I The fund’s performance has been As on 19 Dec, 2017 fairly consistent over the years. Mrinal Singh I The fund’s risk-reward profile is TENURE: 6 YEARS AND 9 MONTHS better than many of its peers. Education: B.E., PGDM Wherever not specified, data as on 30 Nov 2017. Source: Value Research.SHOULD This value-driven fund has changed has cut down the portfolio size and a sharper focus on relative strict emphasis on value puts it atYOU colours considerably over the past from around 60 stocks in May 2015 valuations for picking stocks. Since odds with the momentum drivenBUY? few years. While retaining its multi- to just over 40 now, even as the fund opportunities in the large-cap space rally in the market. But its tracks cap approach, it has shifted from corpus has ballooned. This is in are comparatively limited, the record suggests that this approach focusing on the mid-cap segment response ti the stretched valuations portfolio has also contracted. The bears good results over the long to taking a heavy large-cap tilt. It in the small- and mid-cap space, fund has struggled recently as its term.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, JANUARY 2018 Fund Review ICICI Prudential Balanced Advantage Fund Make market dynamics work for youThe Economic Times | December 05, 2017Many retail investors are entering the ICICI Prudential Balanced Advantage Fund, With valuations inching up, the fund has markets through the mutual fund the largest in the space with assets of Rs. trimmed its equity exposure to 37% as of route for the first time. In a scenario 22,465 crore under management, uses the October 2017. Over the past year, the fundwhere markets are trading close to their all- price-to-book-value ratio of the market, to has delivered a return of 16.08%, and it alsotime high and earnings growth has been flat decide its equity allocation. Rebalancing is uses derivatives to hedge against thefor the past four years, financial planners say done on a daily basis. Its equity exposure downside or generate arbitrage returns. Thethat instead of investing in pure equity can range anywhere between 30% and equity portion is mainly invested in large-capfunds, first-time investors making should 80%, with debt making up the rest. For stocks, while in the debt portfolio, the fundenter the equity market through dynamic example, when the Sensex was at 23,002 on does take some duration calls help make theasset allocation funds. These funds reduce February 29, 2016, with the price-to-book most of rate declines. It also has someor increase their exposure to equity in the value of the Nifty at 2.81, the fund had a 76% allocation to below-AAA corporate bonds forportfolio based on market valuations and are net equity exposure. higher accruals.less risky or volatile compared to pure equityfunds. RETURNS PEER COMPARISON (in %) 1-YEAR 3-YEAR 5-YEARPORTFOLIO CHANGE (PAST 6 MONTHS) Birla SL Balanced Advantage Fund (G) 14.30 10.34 13.17New Entrants Complete Exits Increase In Allocation Max Financial ServicesAegis Logistics BPCLAshok Leyland Jubilant FoodWorks IndusInd Bank IDFC Dynamic Equity Fund-Reg (G) 15.57 6.12 -Bank of Baroda GAIL (India) L&T Dynamic Equity Fund-Reg (G) 10.58 5.16 13.77 HYBRID ASSET MOSt Focused Dynamic Equity-Fund (G) 20.60 - - ALLOCATION-AVGRETURNS (in %) ANNUALISED RETURN Source: Accord Fintech, Compiled by ETIG DatabasePERIOD CAGR RETURN SIP CAGR RETURN Expert Take1 Year 16.99 15.31 14.01 AMOL JOSHI, founder, Plan Rupee3 Year 10.26 12.69 9.31 This fund is suitable at current market levels where valuations are a concern. It is a good bet for investors who do not want to time the5 Year 14.23 14.85 12.32 market, as it uses a model to do it.Source: Accord Fintech, Compiled by ETIG Database ICICI Prudential Dynamic Plan Cautious stance provides comfortThe Hindu Business Line | December 16, 2017 the fund has been on the defensive, holding space are ICICI Bank and SBI. only 65-75 per cent in equities.If the sharp rise in the equity markets in Portfolio 2017 is giving you sleepless nights, you Long-term performance In the last year, the fund increased exposure can consider investing ICICI Pru Dynamic Besides, even as many mid-and small-cap to the defensive consumer non-durablesFund. A conservative option among stocks (stocks with market capitalisation of space. ITC and GSK Consumer are some ofdiversified equity funds, Pru Dynamic helps less than ₹10,000 crore) continued to the stocks its holds here. Headwinds in ITcontain the downside in volatile and falling outperform over the last year, the fund has and pharma have seen the fund paremarkets by taking cash and debt calls. Even reduced its holdings in this segment from holdings in these segments by about 3in its equity holdings, the fund usually sports about 15 per cent early in the year to around percentage points. Pharma stocks that sawa large-cap bent. 9 per cent as per its latest portfolio. But over holdings pared include Cipla, Sun Pharma the long term, the fund’s moves have paid and IPCA Labs.These two features would come in handy in off. Over three- and five-year periods, thelimiting losses should the markets correct fund has outpaced its benchmark Nifty 50 by In the debt segment, the holdings includefrom here on. It is, hence, an appropriate 4-5 percentage points. NCDs of HDFC Bank (AA+) , Axis Bankchoice for investors who do not wish to take (AA+), Sadbhav Infrastructure (A+) andhigh risks at this point in time. This performance is better than peers such Arvind Lifestyle (AA). as Invesco India Dynamic Equity and L&TIn the last one year, the fund’s performance Dynamic Equity. Pru Dynamic has a well- It is also invested in foreign equities such ashas been a tad below its benchmark, the diversified basket of stocks, numbering over Honda Motor Co and Skechers.Nifty 50. A major reason for this is its 50 at any point in time. Banks always remaindecision to hold a good chunk of its assets in the top sector choice; top holdings in thisdebt/cash. Considering the rising marketsand burgeoning valuations in the last year,Steady over the long runAssets as on Sep 30, 2017: ` 16,744 crore Annual returns (in %) 19.1% Debt ICICI Prudential Dynamic Plan Nifty 50 13.3% Banks 7.2&% Consumer non-durables 24 25.3 17.5 Fundas 7.1% Power Large-cap tilt 11.9 11.7 Defensive asset allocation 7.6 6.9% Software 1 year 3 years 5 years Good sector churn 46.4% OthersThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 7TARAKKI TIMES, JANUARY 2018 ICICI Prudential Value Discovery Fund Size matters, valuation more soThe Economic Times | December 26, 2017 benchmark BSE 500 has delivered 14% and comparison with mid-sized companies. 6.4% returns, respectively, in the samePeak valuations in markets warrant periods. In the past six months, the fund manager attention to stocks which have has invested in companies which may look growth potential and are attractive on One of the key features that has been the contrarian (IT, Pharma) to the street'srelative valuation. Among the large-cap hallmark of the scheme is it is not tied down consensus but have the promise of stableschemes which not only look at companies to size of a company. The scheme's fund earnings, established market share, strongfrom growth potential but also on ratios manager Mrinal Singh is in constant search brand value and encouraging past financials.such as price-to-book value and relative of attractive valuations. Since the past one A few of the prominent companies whichmarket capitalisation is ICICI Prudential year, large-sized companies have been far reflect this line of thought are SunValue Discovery Fund. The scheme has more attractive than their mid-sized Pharmaceutical Industries, Indian Oilconsistently followed this style of investing counterparts, the scheme has enhanced Corporation, Bharat Forge, and lnfosys.and has rewarded investors by recording exposure to large-sized companies. Thiscommendable performance especially in ensures margin of safety and also to a largethe long-term. In the past five-year and ten- extent, predictability of earnings inyear periods, the scheme has delivered20.9% and 15.3% returns while itsPORTFOLIO CHANGE (PAST 6 MONTHS) RETURNS (in %) EQUITY DIVERSIFIED MULTICAP-AVGNew Entrants Complete Exits Increase In Allocation PERIOD CAGR RETURN SIP CAGR RETURN Exide Industries ANNUALISED RETURNITC Bajaj Finserv Sun Pharmaceutical 1 Year 25.30 20.64 Indian Oil Corporation 3 Year 11.31 14.28 39.76Bharti Airtel Birla Corporation 5 Year 20.95 21.71 16.29ONGC GMR Infrastructure 27.36RETURNS PEER COMPARISON (in %) Expert Take Harshvardhan Roongta, CFP, Roongta Securities 1-YEAR 3-YEAR 5-YEARAditya Birla Sun Life Top 100 Fund 33.75 11.94 18.05 It is important that an investor chooses a scheme with the objective ofFranklin India Flexi Cap Fund 33.12 11.85 18.63 cherry-picking companies at reasonable valuations. Since this is theKotak Classic Equity Regular Plan 38.78 11.99 16.25 core philosophy of the scheme, it works well for investors looking at stable returns without extreme volatility. In the coming quarters, thisSource: Accord Fintech, Compiled by ETIG Database scheme would be preferred on its consistent performance and portfolio quality. ICICI Prudential Focused Bluechip Equity Fund One Fund ReviewMint | December 2017 Return mint How ` 10,000 has grown 50BEST Mint 50 is a curated list of 50 45,000 FUNDS investment-worthy funds. 40,000 35,000ICICI Prudential Focused Bluechip Equity Fund 30,000 ICICI Prudential Focused Bluechip Equity Fund 39,990 Nifty 50 IndexCorpus (` cr) (as on 31 Oct 2017) 15444.93 25,000 21.254 40.07 20,000NAV (as on 29 Nov 2017) 2.11 15,000Expense ratio (as on 31 Oct 2017) 1.98 10,000Category average expense ratio ` 5,000 5,000 29 Nov 2017(as on 31 Oct 2017) 26 May 2008Minimum Investment Source: Value Research Base value taken as 10,000The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

8 TARAKKI TIMES, JANUARY 2018 Fund Reviewmint List of ICICI Prudential Funds in Mint50BESTFUNDSMint | December 2017FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr)LARGE CAPICICI Prudential Focused Bluechip Equity Fund 12.85 16.95 NA 16,538.75MULTI CAP 12.74 17.43 11.15 10,060.15ICICI Prudential Dynamic Plan 19.51 20.47 NA 157.42ICICI Prudential Nifty Next 50 Index Fund 11.26 20.38 15.12 17,622.35ICICI Prudential Value Discovery FundTAX PLANNING 11.07 17.53 10.94 5,023.31ICICI Prudential Long Term Equity Fund 13.19 18.13 10.90 25,956.87(Tax Saving)EQUITY-ORIENTEDICICI Prudential Balanced FundFUND CORE 3-month return (%) 6-month return (%) 1-year return (%) Fund size (Rs cr)DEBT-ORIENTEDSHORT TERM 0.44 1.94 5.32 9,085.99ICICI Prudential Short Term PlanSIP Top UpA monthly Systematic Investment Plan (SIP) of Rs.10,000 with an annual Top Up of 10% in these schemes has generated returns as stated below.Scheme Name 5 Years 10 YearsICICI Prudential Return (%) 1,510,835 5,615,417 Midcap Fund 27.84 20.93 ICICI Prudential Return (%) 1,212,549 --Focused Bluechip Equity Fund 18.17 --ICICI Prudential Return (%) 1,234,600 4,613,823Balanced Fund 18.97 17.13ICICI Prudential Return (%) 1,205,266 4,313,149 Top 100 Fund 17.92 15.68ICICI Prudential Return (%) 1,215,430 4,275,882 Dynamic Plan 18.28 16.41ICICI Prudential Return (%) 1,240,912 4,461,438Multicap Fund 19.29 16.38ICICI Prudential Balanced Return (%) 1,104,440 4,013,222 Advantage Fund 14.3 14.34 ICICI Prudential Return (%) 1,122,815 --Select Large Cap Fund 14.96 -- ICICI Prudential Return (%) 1,263,692 5,413,352Value Discovery Fund 20.1 20.82ICICI Prudential Long Term Return (%) 1,200,810 4,420,378 Equity Fund (Tax Saving) 17.87 17.27Data in XIRR (%) terms and as of December 29, 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Review 9TARAKKI TIMES, JANUARY 2018ETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | December 2017FUND Value Research Returns (%) Fund Rating 3-month 6-month 1-year 3-year 5-year 7.84 16.72EQUITY: LARGE CAP 12.84 31.15 11.93ICICI Prudential Focused Bluechip Equity FundICICI Prudential Value Discovery Fund 8.59 10.33 22.64 10.24 20.03EQUITY: MULTI CAP 11.02 16.21 43.3 18.06 19.77ICICI Prudential Nifty Next 50 Index Fund 7.83 10.43 23.83 12.85 18.09 1.21 3.17 6.88 8.63 8.63HYBRID: EQUITY ORIENTEDICICI Prudential Balanced Fund -0.02 1.97 5.15 8.91 9.2HYBRID: DEBT-ORIENTED CONSERVATIVEICICI Prudential Regular Income Fund -0.73 0.91 4.35 9.17 11.18(An open ended income scheme. Income is not assuredand is subject to the availability of distributable surplus)DEBT: INCOMEICICI Prudential Banking & PSU Debt FundDEBT: DYNAMIC BONDICICI Prudential Long Term PlanSystematic Investment PlansA monthly Systematic Investment Plan (SIP) of Rs. 10,000 in these schemes has generated returns as stated below Scheme Name 3 Years 5 Years 7 Years 10 Years ICICI Prudential Return (%) 506,194 1,190,105 2,038,484 3,618,557 Midcap Fund 23.51 27.84 24.93 20.93 ICICI Prudential Return (%) 470,817 943,184 1,548,218 --Focused Bluechip Equity Fund 18.28 18.17 17.18 -- ICICI Prudential Return (%) 466,670 961,769 1,621,691 2,947,652 Balanced Fund 17.65 18.97 18.48 17.13 ICICI Prudential Return (%) 471,891 937,408 1,540,022 2,726,303 Top 100 Fund 18.45 17.92 17.03 15.68 ICICI Prudential Return (%) 472,263 945,569 1,551,422 2,836,157 Dynamic Plan 18.5 18.28 17.23 16.41 ICICI Prudential Return (%) 462,310 969,314 1,604,783 2,831,612 Multicap Fund 16.99 19.29 18.19 16.38ICICI Prudential Balanced Return (%) 435,979 857,915 1,419,241 2,536,871 Advantage Fund 12.88 14.3 14.74 14.34 ICICI Prudential Return (%) 445,093 871,879 1,404,539 --Select Large Cap Fund 14.32 14.96 14.44 -- ICICI Prudential Return (%) 440,563 988,542 1,730,564 3,596,341Value Discovery Fund 13.61 20.10 20.31 20.82ICICI Prudential Long Term Return (%) 448,324 936,373 1,568,331 2,970,099 Equity Fund (Tax Saving) 14.83 17.87 17.54 17.27Data in XIRR (%) terms and as of December 29 , 2017The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

10 TARAKKI TIMES, JANUARY 2018 Tarakki CornerYour YToaur rTaarakkkki CiornCer ornerPankaj Ladha Knowledge can take you places. He who has knowledge well as the financial world.” He says Investor education isARN - 63097 will always find a right way. Pankaj Ladha hails from Kota, his passion and he does it for personal satisfaction. In theKota Rajasthan, India - the education City of India. He is a last one year, he has conducted over 60 financial literacy commerce graduate working in the financial markets since programs that was attended by over 10,000 people. His 1991. target is to financially educate 25,000 people by 2020. He is a stock broker since 1991 having over 3000 investors However, he has gained clients slowly and has had people in broking as well as mutual funds. He has joined mutual approach him either 9 or 10 Months after the initial fund industry since 2015. On this 15th August he was meeting. For him an educated investor is a win-win awarded by Rajasthan Government for spreading financial situation. education and educating people which helps them make informed financial decisions. As on today Pankaj manages over approximately ` 100 crores of financial assets. According to him, a good When he started out as a professional, he found that portfolio would include proper allocation of funds and investors had bad experiences due to lack of discipline and rebalancing backed with proper research. emotional quotient. So he went on to plan portfolios that would create a sense of discipline and empower them to To the aspirants of financial advisory and research, he manage their investment portfolios professionally. His advises to focus on learning, reading and interacting with focus always is on undertaking research and planning investors to exchange knowledge. “Learning should never properly. stop. The more learning takes place, the better is your business.” He concludes. Investors are a big source of inspiration for him. They've also supported and motivated him throughout his professional life of over 25 years as family does. That helps him derive business without aggressively taking up any marketing initiatives. He acquires new clients through references from existing investors. He believes a happy investor helps you grow. “We offer advise that broadens their horizon in the investment asThe 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 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 ofpublication 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 infuture 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 andany 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 anyloss 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 PrudentialMutual 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.