Tarakki Times English February 2018

A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS MUMBAI | FEBRUARY 2018 | PAGES 10 Professional Views A balanced approach to a buoyant stock marketPg. 2There is need forincentives for debtinvestors S Naren, ED & CIO ICICI Prudential Mutual FundPg. 3Great timefor lumpsuminvestmentsin this category Raghav Iyengar, EVP & Head - Retail & Morningstar | January 31, 2018 Institutional Sales Nimesh Shah As investors second-guess themselves before investing in equity, ICICI Prudential Mutual Fund MD & CEO Nimesh Shah, MD and CEO of ICICI Prudential Asset Management,Pg. 5 ICICI Prudential Mutual Fund has a suggestion.Open vs closed The Indian equity market has returns that can be lower than Price of crudeended ELSS: witnessed unprecedented inflation?which one is better domestic flows despite high Oil prices have touched a two-for investors? valuations and tepid corporate Not necessarily. Today, the year high and have risen by about earnings growth. The domestic investor has the option of opting 20% just over last 1-month (Data Raghav Iyengar, EVP & Head - Retail & institutional investors, or DIIs, for balanced advantage category as on January 23, 2018). The Institutional Sales have ploughed a record amount of funds that offers exposure to markets are concerned about of money into equities in 2017, stocks while limiting risk by rising crude prices which could ICICI Prudential Mutual Fund more than double of what they investing substantial money into have adverse macro implications invested in all of the previous debt securities as well. These and challenge India’s economic Fund Reviews year. funds aim to buy stocks at lower recovery over coming quarters. valuations and sell at higher The ascending oil prices mayPg. 6 The local insurance companies, levels, and gain from market have serious implications on pension funds and mutual funds volatility over the long term. inflation, currency, currentICICI Prudential Focused Bluechip together were net buyers of account deficit (CAD) and fiscalFund shares worth Rs 74,728 crore till Currently, Indians are under- deficit. Some estimates suggest about mid-November 2017, invested in equities relative to that with every $10 per barrel riseThinking Large, Thinking against Rs 35,526 crore in all of gold and real-estate. The lack of in crude prices, India’s fiscalContrarian 2016, according to data from the alternative investment balance may worsen by 0.1% Bombay Stock Exchange. opportunities in other asset and current account balance byICICI Prudential Balanced Fund classes and low yields in real 0.4% of GDP. However, amidst all these estate and commodities has ledOne Fund Review positives, there is a chance that a to massive migration amongst GSTPg. 7 new market entrant may not domestic investors to consider recognize the complete risk of equities. The systematic The challenging macroeconomicICICI Prudential MIP 25 equity as an asset class. As investment plans or SIPs, which landscape along with some Warren Buffett aptly describes - has been the preferred route for transient glitches with the goodsRiding higher on equities Be fearful when others are retail investors witnessed and services tax (GST) could greedy and greedy when others monthly collections growing to pose some concerns to thePg. 8 are fearful. Rs 5,621 crore in October 2017 current rally in equity markets.List of ICICI Prudential from Rs 3,434 crore in OctoberFunds in Mint With Indian shares trading near 2016. The number of investor ValuationsSIP Top UP life-time highs, the valuation folios also rose to a record 6.20 have turned rich, calling for crore at the end of September Corporate earnings are currentlyPg. 9 prudence when investing at 2017 from 5.53 crore in March- not in-sync with stock marketETW Funds 100 current levels. Investors are end, a gain of 66.5 lakh, performance, leading to richSystematic Investment Plans advised to exercise cautious according to data from the valuations. The benchmark, S&P approach in these market Securities and Exchange Board BSE Sensex’s price to earnings Tarakki Corner conditions while participating in of India (SEBI). (PE) multiple is trading above 24 Pg. 10 equity as an asset class. times, making Indian markets Taking a cautious stance on the one of the most expensive Mohit Handoo Should investors keep away equity market among all major global markets. ARN - 100424 from equities and risk earning The market valuations appear Indore Contd. on page 2The 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, FEBRUARY 2018 Interview There is need for incentives for debt investors Economic Times | February 01, 2018S Naren how much they are able to get And that is the key talking point increase infrastructureED & CIO money into debt because it is because we have seen a very investment. Is there a big push toICICI Prudential Mutual Fund extremely imperative that powerful rally in the markets ensure that interest rates either interest rates do not shoot up. ahead of this budget. Of course, go down or stay static? Is there aThe backdrop this time is it is in tandem with what the push to make ease of doingdifferent. Last year, the It is very important that debt rest of the globe is doing, we business so that we create morechallenge was how will Indian investors are incentivised. At this are amidst a strong global capacities in every industry?economy recover from point of time, the way the market market rally as well but it has These are the things which reallydemonetisation which was a operates, equity investors are been focussed on large caps. It matter and whether jobs arehuge headwind. But right now. incentivised and we are getting a is almost like a catch up there being created and if the ruralwe have a tailwind in the global lot of money in debt from the rest because midcaps and small- sector is in a better shape than iteconomy growing at 3% and of the world. It is imperative that caps had outperformed all of has been in the last five years.the earnings cycle has started local investors continue to invest last year and they are These are the only things whichas well. What according to you in debt. If you look at how correcting a bit. What do you the government is going to becan be called a good budget or interest rates are moving, that is think the Budget could mean bothered about. In the next two-a bad budget? What do you a problem and unfortunately, for the markets in general? three days and for all of us inthink will make the markets everyone is watching only what equity market, what happens tohappy or force a correction in is happening in equity market as So, I would say over the next two taxation is pretty important but ifthe markets? it has been very buoyant. It is to three days, the equity market you are going to have only helping to raise money and that is clearly going to respond to equities go up and interest ratesThe market is very, very equity is a positive. But the continuous taxation changes if they are keep going up, you are not goingoriented and we have seen a rise in small and mid-caps as negative for the equity market. to have any big capex cycle, thatfairly large increase in interest what we have seen recently is But in the long run, what is going is my worry.rates on the debt side over the not healthy for the long term. to matter is the big push tolast one year. People seem tothink that it is only equity market The market is very, very equitywhich matters but if you look at oriented and we have seen athe situation today, if you are fairly large increase in interestgoing to have continuous rates on the debt side over theincrease in interest rates, then last one year.that is an equally negativedevelopment and I wouldactually watch the Budget to seeA balanced approach to a buoyant stock market Contd. from page 1elevated even when compared Investors often hear about how fund industry offers a solution in an income stream and temperingto historical values. Bloomberg asset allocation is the the form of dynamic asset portfolio volatility. Hence, ashows that S&P BSE Sensex cornerstone of long-term wealth allocation/balanced advantage conservative investor looking tofirms’ consensus earnings per creation. All major financial category of funds, which will invest money for long-termshare (EPS) forecast for the assets invariably exhibit a certain help address this dilemma. By financial goals can considercurrent financial year has been degree of volatility in due course investing in such a fund, one gets investing in balanced advantagereduced by 5.8% since April of time. One should always exposure to both equity and debt category of funds that aims to2017, and by 10.97% for the next reminisce that no asset class is asset classes, all within a single gain from market volatility overyear. In the light of these, the designed or programmed to portfolio. Such funds are geared the long term.current valuations suggest that move in one specific direction, toward investors who are lookingmedium term market returns say, in a straight ascending line. for safety, income and capital As Warren Buffett said,form equities are likely to remain However, an average investor appreciation for their “Successful investing takesmoderate. finds it difficult to implement this investments and tax efficiency. time, discipline and patience. No strategy in their personal matter how great the talent orHave a 'balanced’ approach to investments. The debt component of balanced effort, some things just takeasset allocation advantage category of fund time.” For such an investor, the mutual serves multi purposes – creatingThe 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, FEBRUARY 2018Great time for lumpsum investmentsin this categoryWealthForum | February 12, 2018Raghav Iyengar believes this is a WF: What are some of the implications of volatility in US Raghav Iyengargreat time for lumpsum recent policy initiatives around bond markets be for global EVP & Head - Retail &investments in low duration deepening the corporate bond bond markets in general andaccrual oriented corporate bond market and how will this our bond market in particular? Institutional Salesfunds, like the ICICI Prudential influence accrual strategy ICICI Prudential Mutual FundRegular Savings Fund. A oriented debt funds? Raghav: It is still too early to takerelatively less noticed aspect a call as to the 30-year bull The scheme believes in staticfrom the Budget is specific Raghav: There are three recent market is over or not. But duration management. In the lastmeasures to boost the corporate developments which has been definitely the environment in the one year from January 31, 2017bond market, which Raghav favourable for accrual strategy Indian bond market is volatile. to January 31, 2018, the durationbelieves will not only deepen it, oriented debt Schemes. With this perspective, it makes has been in the range of 1.5 tobut will also help soften yields sense to remain invested in low 2.5 years. As of January 31, 2018from the current elevated levels - 1) In a bid to support growth, the duration Schemes. modified duration for thethus offering a great Government in Union Budget scheme is 1.67 years.combination of high YTM and 2018, has set itself on an WF: How have you positionedpotential capital appreciation expansionary path which caused your Regular Savings Fund indown the line. the fiscal deficit to slip to 3.5% in terms of duration and credit FY18, as opposed to the profile?WF: What is your take on RBI’s previous target of 3.2%. And, therecent policy statement and fiscal deficit estimates for FY19 Raghav:how does this impact your have also been revised to 3.3%.view on fixed income markets 2) Most regulators permit bonds In terms of Durationgoing forward?Raghav: In the recent Policy, with the ‘AA’ rating only as At present, the portfolio of ICICI Considering the marketReserve Bank of Indian (RBI) was eligible for investment. In Prudential Regular Savings Fund conditions, the carry rate isa bit dovish in its H2FY19 Budget 2018, it has been has high Yield to Maturity of higher at this point of time andprojection with inflation proposed to move from 'AA' to 'A' 9.81% as on January 31, 2018 in hence, it may be a good time toexpected to be around ~4.5%. grade ratings for investment comparison to an average 1-year invest now and capture theHowever, we expect inflation in purposes. YTM of 9% from January 31, yields at prevailing levels of YTM.first half of the fiscal to average 3) RBI has issued guidelines to 2017 to January 31, 2018. In terms of Credit Profilearound 5.5% with mild upside nudge Corporates access bond The scheme portfolio is well-risk. Consequently, worries market. The Regulator can diversified across a large numberrelating to rate hike have consider mandating, beginning of securities which reduces risksubsided for now which makes with large Corporates, to meet pertaining to high exposure in athe shorter end of the yield curve about one-fourth of their single bond.reasonably attractive. The last financing needs from the bondquarter seasonality, owing to the market. The scheme is well diversifiedtight liquidity conditions, further and invests predominantlystrengthens the case for short The above changes are likely to across various credit ratingsduration schemes. help broaden the credit market ranging between AAA to A with and can provide much needed an aim to maintain a reasonableFor medium term, we continue to liquidity and depth. portfoliomaintain a neutral stance on The portfolio is invested acrossyields and would continue to WF: The recent global sell-offevaluate the movement in crude seems to trace its origins tooil prices, impact of MSP upheavals in the US bondincrease on inflation and global market, where most believebond yields movement. We that a 30 year bull market hasrecommend investors accrual finally ended. What wouldschemes such as ICICI PrudentialRegular Savings Fund as theseschemes offer healthy yield-to-maturity at current levels.Given that bond yields could bevolatile owing to concernsarising out of higher inflation, werecommend investors to stick toshort duration schemes. But forthose investors who look tobenefit from such volatility caninvest in ICICI Prudential LongTerm Plan.The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

4 TARAKKI TIMES, FEBRUARY 2018 Interview77 different securities with Growth of Rs. 100 invested in ICICI Prudential Savings Fund for Three Years (Post Tax)average exposure of around1.23% to each individual issuer, 130 ICICI Prudential Traditional 124.2highest exposure to single issuer 118.2being limited at 4.03%. This 125 Regular Savings Fund Investment Avenueensures that portfolio is welldiversified and has limited 120concentration risk. 115As on January 31, 2018, theportfolio comprises of 110investment of ~86.04% A &Equivalent and above securities 105and ~5.14% in CBLO & CurrentAssets. 100Disclaimer: The portfolio of the Jan-15scheme is subject to changes Mar-15within the provisions of the May-15Scheme Information document Jul-15of the scheme. Please refer to Sep-15the SID for investment pattern, Nov-15strategy and risk factors. Jan-16 Mar-16Recent Portfolio Credit Rating May-16Upgrades Jul-16 Sep-16The scheme portfolio is well- Nov-16diversified across a large number Jan-17of securities which reduces risk Mar-17pertaining to high exposure in a May-17single bond. Jul-17 Sep-17 Nov-17 Jan-18 ICICI Prudential Regular Savings Fund Traditional Investment Avenue Data as of January 31, 2018. Returns are calculated on an absolute basis. Growth of Rs. 100 invested in ICICI Prudential Regular Savings Fund is calculated by rebasing monthly net asset value to 100 and considering Indexation benefits (6% Inflation). Growth of Rs. 100 invested in fixed return instrument Avenue rate is considered at 8.5% p.a. Past performance may or may not be sustained on future. Traditional Investment Avenue has the highest safety for principal invested, there is no assurance or guarantee of future performance of ICICI Prudential Regular Savings Fund. Past performance is no guarantee of future returns. It is necessary to consult tax/financial advisor before making investments in mutual funds, This information is only for distributors and advisors of ICICI Prudential Mutual Fund. The information contained herein is solely for private circulation for reading/understaning of registered Advisors/Distributors and should not be circulated to investors/prospective investors. here are the post-tax Tax-Efficient Return performance. WF: What is the key investment argument for your RSF now? Raghav: The recent announcements in Budget 2018 (listed above) can help broaden the credit market by way of yields are at elevated levels, we Raghav: Yes, the facility is believe it is a good opportunity to available for this Scheme. One invest lump sum and at the can use this to generate current levels of YTM. consistent cash flows.WF: For investors with a 3 year improved depth and liquidity. WF: Can one opt for Automatichorizon, what kind of This can lead to softening of Withdrawal Plan in thisperformance history has this yields, due to increased supply. Scheme?fund demonstrated? Hence, we recommend investors to invest at the currentRaghav: On a three year basis, elevated levels in schemes likethe Fund has delivered ICICI Prudential Regular Savingsreasonably steady returns, as Fund which has Yield-to-Maturitycan be seen from the tables (YTM) of 9.81% (Data as on 31below. The returns presented January, 2018). Considering thatThe information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Interview 5TARAKKI TIMES, FEBRUARY 2018 Open vs closed ended ELSS: which one is better for investors? WealthForum | January 22, 2018Raghav Iyengar Raghav: Both open and close followed by ICICI Prudential particularly from domesticEVP & Head - Retail & ended ELSS scheme provides tax L o n g -Te r m We a l t h - investors in the last few years.Institutional Sales benefit to an investor by way of Enhancement Fund? However, we expect the inflowsICICI Prudential Mutual Fund deduction up to the limits (Rs. 1.5 to continue because of the lakh) as specified under section Raghav: ICICI Prudential Long- structural changes in IndianRaghav believes that a 10 year 80C of Income Tax Act, 1961. Term Wealth-Enhancement Fund macro-economics. For one, realclosed ended ELSS fund structure While investing in a close ended will have a.. interest rates are high, which leadwith an exit option after 3 years fund, one of the factors that plays investors to invest more inoffers fund managers an out to an investor's advantage is Highly concentrated portfolio with financial assets. We are not in aopportunity to go further in the fund manager's ability to take high conviction bets: The top 7-8 high-inflation environment, whichquest for alpha, thus enabling investment calls with a 10-year companies will comprise about means demand for physicalthem to deliver strong view, which allows the underlying half the size of a portfolio. In this assets will be low.performance. Also, staying investment to achieve its true strategy, the fund manager takesinvested for 10 years enables potential, as well as benefit from high-conviction bets based on a In the course of time, earningsinvestors to reap the true rewards the effects of compounding. It thorough bottom-up stock-picking growth of Indian companies willof long term capital appreciation. helps investors achieve a superior strategy, which looks at the full pick up and we are already seeingRead on as Raghav takes us investment experience. potential of scaling up the green-shoots in many sectors.through the investment case for business. Some of the big structuralthe 10 year version of ELSS funds Besides, they allow fund reforms are in place, and it is nowin general and the portfolio managers to venture into under- Strategy followed - Growth: only a matter of time beforestrategy of the new ICICI valued areas of the market that Enables a fund manager to seek corporate earnings revive, whichPrudential Long Term Wealth are not a part of the front-line companies that can command a would take place in a year or two.Enhancement Fund. benchmarks. This provides the higher proportion of their markets Driven by this, there's no reason to leeway for fund managers to seek or that are category growth believe that foreign investors willWF: What factors should undervalued investments in leaders, where the benefits of not invest in a larger way in Indianinvestors consider when undiscovered areas of the market economies of scale combined markets. Note, also, that foreignchoosing between an open-end where value-unlocking can be with operational efficiencies investors have been marginalELSS fund with a three-year achieved. This makes the fund particularly play out. sellers in the Indian market morelock-in vs. a 10-year closed-end structure more advantageous to because of the potentialfund which provides an exit investors. Flexi-cap approach: The scheme opportunities elsewhere. But,after the three-year lock-in? will be market-cap agnostic, once Indian earnings haveWhat are the advantages of the The same can be inferred from providing a healthy mix of small- revived, foreign investors are likelylatter and for what kind of the performance of ICICI and mid-cap stocks. to be attracted by the betterinvestors would the latter be a Prudential R.I.G.H.T. Fund which a Indian fundamentals.better option? 10-year close-ended scheme. WF: Markets are continuing to post new highs even as WF: What is your market An investment of Rs. 100 has valuations look overstretched. Is outlook for 2018, and how do grown to Rs. ~437 vs Rs. 211 in this just a case of TINA-driven you see factors such as oil Nifty 50 Index in approximately 8 domestic liquidity coming into prices, fiscal slippages and rising years. The Scheme has delivered markets or do you see robust FII interest rates impacting our 20% in CAGR terms. inflows too in our equity equity markets in 2018? markets? WF: What will be the portfolio- Raghav: From a valuation strategy and investment-style Raghav: True, the Indian markets perspective, stock prices have run are seeing robust inflows, up significantly and valuations are hovering around their past averages. Having said that, the outlook for 2018 is fairly robust, driven by three fundamental shifts happening in the Indian economy. First, the first leg of heavy economic reforms is now behind and it's only a matter of time for earnings to pick up. Second, with the capacity utilisation levels are at multi-year low, a pick-up is likely in this space as utilisation improves. Third, inflation and macro-economic parameters are expected to pick-up in reasonable limits. Hence, markets are likely to remain buoyant.Source: MFI; CAGR - Compounded annual growth rate; Data as on Dec 19, 2017 Rebased to 100. Past performance WF: When you cast the initialmay or may not be sustained in future. The information herein is solely for private circulation and for portfolio of this fund, whichreading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective sectors and themes are youinvestors. likely to be overweight and why? Raghav: While clearly there will Contd. on page 6The 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, FEBRUARY 2018 Fund Review ICICI Prudential Focused Bluechip Fund Thinking Large, Thinking ContrarianThe Economic Times | January 30, 2018For long-term retail investors, it makes The scheme invests close to 90% of its managers - S Naren and Rajat Chandak - sense to be with schemes with focus portfolio in large companies, while the have bought companies which represent a on large-sized companies that have remaining is invested in mid-sized contrarian theme. The companies have ashown relatively better resilience in their companies. In the past three-year and five- high earnings growth visibility in the nextfinancial performance in the December 2017 year periods (annualised returns), the two to three years given their dominantquarter. One such scheme that has scheme has given 11% and 17% returns, market share, robust business model, goodperformed well in the past three-year and while its benchmark, the Nifty 50, has given dividend-paying record and high cash flowsfive-year periods with respect to its 7% and 12% returns during the same from operations. These companies arebenchmark (Nifty 50) is ICICI Pru Focused period. Eicher Motors, HDFC, ONGC and AsianBluechip. Paints. In the past six months, the scheme's fundPORTFOLIO CHANGE (PAST 6 MONTHS) RETURNS (in %) EQUITY DIVERSIFIED LARGECAP-AVGNew Entrants Complete Exits Increase In Allocation PERIOD CAGR RETURN SIP CAGR RETURN ANNUALISED RETURNICICI Lombard General Insurance BPCL Eicher Motors 1 Year 30.62 31.07 28.92Idea Cellular Castrol India Asian Paints 3 Year 11.44 22.04 12.37JSW Steel Coal India ONGC 5 Year 17.23 20.74 22.50RETURNS PEER COMPARISON (in %) Expert Take Kaustubh Belapurkar, Director (Fund Research), Morningstar India 1-YEAR 3-YEAR 5-YEARInvesco India Dynamic Equity Fund 22.43 11.22 15.55 Despite the exit of lead manager Manish Gunwani last year, the coreJM Core 11 Fund 30.21 13.51 17.97 strategy of the fund remains unchanged under S Naren. ICICIJM Multi Strategy Fund 27.93 12.53 18.75 Focussed Bluechip is a large cap fund with a quality and growth bias when picking stocks. It uses competitive analysis and followsSource: Accord Fintech, Compiled by ETIG Database qualitative filters to identify best picks within each induastry. ICICI Prudential Balanced Fund One Fund ReviewMint | January 2018 Return How ` 10,000 has grown mint 1,50,000 ICICI Prudential Balanced Fund 1,34,357 1,30,000 Hybrid: Equity-oriented 50BEST Mint 50 is a curated list of 50 1,14,762 FUNDS investment-worthy funds. 12 Jan 2018ICICI Prudential Balanced Fund 1,10,000 Source: Value ResearchCorpus (` cr) (as on 31 Dec 2017) 25,956.87 90,000NAV (as on 15 Jan 2018) 132.03 70,000 2.21Expense ratio (as on 31 Dec 2017) 2.31 50,000Category average expense ratio ` 5,000 30,000(as on 31 Dec 2017) 10,000Minimum Investment 19 Nov 1999 Base value taken as 10,000Open vs closed ended ELSS: which one is better for investors? Contd. from page 5be no over-arching theme that will position to expand in the coming of the funds, ICICI Prudential out of funds prematurely, therebydominate the portfolio, there are decade. We believe these sectors R.I.G.H.T (Rewards of Investing losing out on the benefits ofmany sectors with sufficient will be particularly advantageous and Generation of Healthy Tax scaling up, growth andpotential for scaling-up and to investors in the long run. Savings) Fund has grown by a compounding, which play outexpanding their balance sheets. strong 4.37 times since over the years. However, weSome of the sectors that appear WF: What has been your September 2009. By comparison, believe that as investors warm upwell placed from a very long-term experience been with previous the Nifty has increased only 2.1 to the idea of long-termperspective are autos and the 10-year fund launches? What times in the same period. In terms compounding and the addedauto-ancillary sector, where proportion of investors stay of CAGR, the ICICI Prudential benefits of staying invested fordemand continues to be robust. beyond the mandatory lock-in R.I.G.H.T fund has delivered a long periods, we expect thatAs corporate and retail demand to truly enjoy the benefits of compounded healthy 20 percent, investors will change their stancefor credit picks up and as the long-term investing? showing that long-term and stay invested for the entirefinancialisation of savings plays compounding is highly desirable duration of a decade.out, the financial sector is Raghav: We have seen the for investors.particularly well placed. Besides, benefits of staying invested fortraditional consumer sectors such the long haul in similar funds. One Over the years, we have seen thatas FMCG and retail are in a strong sometimes investors tend to dropThe 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, FEBRUARY 2018 ICICI Prudential MIP 25 Riding higher on equitiesBusiness Standard | January 31, 2018 GOOD LONG-TERM RETUNSLaunched in March 2004, ICICI ICICI Prudential MIP 25 Category Prudential MIP 25 is classified under Benchmark the MIP aggressive category of CRISILMutual Fund Ranking. The fund has been Returns (%)consistently ranked in the top 30 percentile 12(CRISIL Fund Rank 1 or 2) over 12 quartersended December 2017. 2.88 10 2.71The fund's objective is to generate income 1.66 8through investments, primarily in debt andmoney market instruments. As a secondary 10.94 6objective, it also seeks to generate long- 9.04term capital appreciation from the portion of 7.09 4equity investments. The fund's quarterly 9.27average assets under management (AUM) 2stood at Rs 1,458 crore as of December 8.18 02017. 8.21 11.50Consistent outperformance 10.33 9.35The fund has consistently outdone its 10.83benchmark (CRISIL MIP Blended Index) and 9.87category (schemes defined under the MIP 8.99Aggressive category of CRISIL Mutual Fund 9.19Ranking) across all trailing periods under 8.91analysis. 7.93Over the past one year, the fund delivered 6 Months 1 Year 3 Years 5 Years 7 Years 10 Years10.94 per cent absolute returns comfortablyoutperforming its peers (9.04 per cent) and SIP Returns Total Amt ICICI Prudential Benchmarkthe benchmark (7.09 per cent). Invested MIP 25 (Principal `)An investment of Rs 1,000 in the fund at thetime of its launch would have grown to Rs 1-year 120,000 Market Returns Market Returns3,960 at a CAGR of 10.46 per cent, Value (`) (%) Value (`) (%)substantially higher than the benchmark'sRs 2,927 at 8.07 per cent and the category's 125,629 9.08 124,049 6.51Rs 3,533 at 9.55 per cent. 3-years 360,000 422,288 10.75 410,484 8.80A systematic investment plan (SIP) is amode of investment offered by MFs to retail 5-years 600,000 806,597 11.85 763,394 9.62investors through which one can invest a 10-years 1,200,000 2,133,728 11.11 1,912,992 9.04certain amount, at a regular interval. An SIP Inception 1,670,000 3,650,769 10.57 3,121,187 8.66of Rs 1,000 per month in the fund since itsinception has outperformed a similar Returns as on 25 January, 2018investment in its benchmark across periods. Returns up to one year are absolute, rest annualisedDuration management rose by about 81 bps over the past year, AAA/A1+ exposure below 9.00 per cent) higher duration dampened the fund's during this period, lower than that taken byOn average, the fund has maintained higher performance. its peers (13.55 per cent). Over the pastduration than peers over the past three years three years ended December 2017, the fundended December 2017. Portfolio analysis took higher exposure to equity (23.13 per cent), on average, compared with peersThe fund's duration calls have seen some In line with its objective, the fund's portfolio (22.27 per cent). Equity exposure in the pasthits and misses. It maintained higher constituted primarily of debt instruments year was higher at 24.76 per cent, whichduration relative to peers from April 2015 to (73.20 per cent), followed by equity (23.37 benefitted the fund owing to the rally in theApril 2016, when yields declined about 30 per cent) and cash. equity market, which returned 28.65 perbps. cent (Nifty 50) during the same period. The debt exposure was predominantly toThis was favourable for the fund owing to sovereign and high-rated corporatethe inverse relationship between yields and instruments (64 per cent on average). Thebond prices. Subsequently, when yields fund took minimal credit exposure (sub-The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

8 TARAKKI TIMES, FEBRUARY 2018 Fund Reviewmint List of ICICI Prudential Funds in Mint50BESTFUNDSMint | January 2018FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr)LARGE CAPICICI Prudential Focused Bluechip Equity Fund 9.05 16.35 NA 16,739.15MULTI CAP 9.92 17.39 12.68 10,814.79ICICI Prudential Dynamic Plan 14.45 19.66 NA 170.10ICICI Prudential Nifty Next 50 Index Fund 7.32 20.52 17.04 17,421.63ICICI Prudential Value Discovery FundTAX PLANNING 7.63 17.43 12.73 5,121.44ICICI Prudential Long Term Equity Fund 10.80 17.89 11.97 27,839.98(Tax Saving)EQUITY-ORIENTEDICICI Prudential Balanced FundFUND CORE 3-month return (%) 6-month return (%) 1-year return (%) Fund size (Rs cr)DEBT-ORIENTEDSHORT TERM 0.31 1.25 5.85 8,998.34ICICI 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 January 31, 2018The 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, FEBRUARY 2018ETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | January 2018FUND Value Research Returns (%) Fund Rating 3-month 6-month 1-year 3-year 5-year -1.05 16.72EQUITY: LARGE CAP 6.79 17.25 9.08ICICI Prudential Focused Bluechip Equity FundICICI Prudential Value Discovery Fund -0.36 6.83 10.65 7.13 20.71EQUITY: MULTI CAP -2.1 7.12 19.45 14.29 20.05ICICI Prudential Nifty Next 50 Index Fund -0.57 1.23 6.81 13.59 10.78 18.13HYBRID: EQUITY ORIENTEDICICI Prudential Balanced Fund 2.74 6.73 8.5 8.72HYBRID: DEBT-ORIENTED CONSERVATIVEICICI Prudential Regular Income Fund 0.25 0.88 6.13 8.62 8.98(An open ended income scheme. Income is not assured -0.43 -0.75 6.21 8.17 10.98and 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 January 31 , 2018The 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, FEBRUARY 2018 Tarakki CornerYour YToaur rTaarakkkki CiornCer ornerMohit Handoo The expanse of the financial world is such that a layman is constant up gradation and learning of market dynamics areARN - 100424 caught unaware most of the times as to how to invest part of his approach to portfolio building.Indore using the right tools at the right time and make money work for them instead of vice versa. When asked about client acquisition, answered Mohit, “We majorly acquire clients through references; conduct With almost a decade of experience in portfolio investor awareness sessions, AMC meets, and create construction and advisory, he has acted as a single point of awareness through our social interactions and networks” contact for Private Banking clients & catering to their The total assets under his advisory are nearly ` 250 Cr, and banking & investment requirements. His previous his SIP Book is worth ` 1.5 cr as on December 2017. experience included portfolio management of HNI clients, recommending investments in products such as Mutual He considers his role as a social responsibility considering funds, Portfolio Management, Insurance, Structured the lack of awareness concerning financial investments. Products, Real Estate Funds and property deals, He lays strong emphasis on educating investors to set Commodities, evolving & executing sales strategies to clear goals, stick to the predefined strategies and invest acquire HNW clients. His expertise lies in the areas of for a longer tenure, such that short term volatilities do not structured products, Private Equity, Mutual Funds and affect their portfolio. NCDs/Bonds. To all those wanting to venture out as future advisors, he Having completed his MBA, & relevant professional advises newbies to 'never to follow the herd.' certifications, Mohit has the knowledge, skill set, and understanding to his credit. He has worked with some of the best companies in the financial world. As on today, he stands proud as the founder of Wealth Engineers, that is catering to over 500 families which include retail investors, HNIs, UHNIs, NRIs and corporates. 'Wealth Engineers' follows a diligent process to understand client objectives and gauge risk profiles. Diagnosis of the financial health, understanding risk, and reward analytics, following asset allocation patterns,The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.Tarakki 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.