Tarakki_Times_English_February_2020

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS Professional Views MUMBAI | FEBRUARY 2020 | PAGES 12 Pg. 2 BUDGET 2020 Not a single default or delay in debt repayment, says ICICI One for the middle class Prudential chief Hindu BusinessLine | January 06, 2020 ICICI Prudential AMC invests `334 crore in credit risk fund in Q3 Business Standard | January 10, 2020 Nimesh Shah MD & CEO ICICI Prudential Mutual Fund Pg. 3 Hindu BusinessLine | February 02, 2020 Follow-up to corp tax cut needs follow-up beyond budget The Economic Times | February 02, 2020 Investors should shift to value Nimesh Shah lopment, given the quantum of expensive while earnings remain stocks from overpriced names MD & CEO funds worldwide, which are patchy. One has to be cognizant ICICI Prudential Mutual Fund currently yielding zero to of the fact that in 2019, globally, The Economic Times | January 07, 2020 negative interest rates. So, for a central bank policies, by way of The Budget 2020 can be best patient investor, infra as a theme, keeping the interest rates lower, Pg. 4 described as the budget for the has become attractive. ensured the global markets did Indian middle class. The govern- well despite fledging growth Time to look at debt MFs in a ment fixed two anomalies thro- Overall, the Budget continued rates. Given all of these factors, big way ugh various announcements. with the thrust on agriculture and we believe it is best to approach rural economy, infra, social the market through asset- Mint | February 10, 2020 First, by introducing alternate welfare, healthcare, education, allocation schemes. personal income- tax slabs, it improvement in ease-of- living, S Naren ensured that individuals with better governance through Another area, which we believe lower saving ability pay less tax, leveraging technology and tax continues to be attractive, is the ED & CIO unlike in the previous tax slabs. simplification. accrual schemes. Second, the dividend distribution ICICI Prudential Mutual Fund tax is now as per one’s tax slab The Indian equity market has Our framework signals that unlike the previous flat rate, been resilient even at a time accrual schemes, including Tarakki Corner which was burdening to those at when the global equity markets credit- risk funds and medium- Pg. 5 the lower tax levels. slumped on fears surrounding term bond funds, have remained Ashwin Vajani the economic impact of the in the ‘buy’ territory with These measures should be seen coronavirus outbreak. So, a attractive valuations (spread Ashwin Vajani Advisory in tandem with the announce- correction was very likely for the between repo rate) and negative ment made in September 2019, Indian equities and we believe sentiments (NBFC liquidity Pg. 6 when the Finance Minister some of it already played out on crunch). announced corporate tax cuts, the Budget day. Paresh A. Shah that proved to be a sentiment We believe accrual as a space is booster for the capital market. Going forward, too, we believe currently providing good entry Fund Review volatility is likely to persist due to points for investors. Pg. 7 The other major positive was the a host of global and domestic steps taken by the government factors such as the US elections, The writer is MD and CEO, ICICI ICICI MF at top again in debt segment to encourage sovereign wealth the US-China trade deal, pace of Prudential AMC funds to invest in Indian government reforms and conta- IACICI Mutual Fund walks the talk, infrastructure. gion effect of credit concern. The iAnvests in own fund other factor is that the mega-cap This could be a landmark deve- valuation continues to be Pg. 8 ICICI Prudential Long-Term Bond Fund Pg. 9 ICICI Prudential Mid-cap Fund Pg. 10 ICICI Prudential All Seasons Bond Fund Healthy returns with moderate risks Pg. 11 List of ICICI Prudential Funds in Mint ETW Funds 100 Measures ensure that those in the lower income bracket are left with more money. Pg. 12 List of ICICI Prudential Funds in Star Track Mutual Fund

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. 2 TARAKKI TIMES, FEBRUARY 2020 Interview Not a single default or delay in debt repayment, says ICICI Prudential chief Hindu BusinessLine | January 06, 2020 Nimesh Shah higher yields and followed an and debt fund, he said. equity returns expectation as MD & CEO independent assessment of there are lot of uncertainties that ICICI Prudential Mutual Fund credit risk. ICICI MF debt AUM (excluding is clouding the growth. liquid and overnight) has grown ICICI Mutual Fund plays it safe, For debt fund investors, safety 35 per cent while that of the MF Small-caps’ time avoid debt crisis must be paramount, followed by industry decreased 15.5 per liquidity and then returns. cent. The biggest issues with The ongoing US-Iran stand-off Notwithstanding the series of some mutual funds impacted by can drag down Indian equities corporate debts, ICICI Mutual In the case of DHFL, which had the recent credit defaults was and the geopolitical issues are Fund has advised investors to defaulted on debt repayment, their reliance on external rating very difficult to predict. Given the consider debt mutual fund Shah said ICICI MF has decided agencies and higher yield-to- concentrated rally in the stock schemes as it feels the current to keep away from the debt maturity (YTM) than ICICI MF market, the fund house has crisis is an individual case and papers of the company just by schemes, he said. termed the top 15 stocks of Nifty not systemic failure of the entire glancing at its balance sheet. as mega-caps and expects these mutual fund industry. The credit risk portfolio of ICICI stocks to become overpriced. “The alarm bell rang when we MF is well diversified across 85 Speaking to media, Nimesh saw its equity base of ₹8,000 securities to mitigate risk. After two years of underper- Shah, Managing Director, ICICI crore and a debt of ₹1-lakh formance, small-caps are Prudential AMC, said it managed crore,” he said. The performance of debt funds expected to play a dominant role volatility and contained risk in in the last one to two years can in wealth creation in the next recent times by not chasing In fact, Shah said in the last 20 be a good indicator for investors three-five years. years ICICI Mutual Fund did not to decide on their investments, have even a single default or he added. The only issue in the small-cap delay in payment of interest in space is lack of liquidity which is any of its schemes. Currently, Given the concentrated rally in slowly getting resolved, he said. corporates are constrained by equity markets, S Naren, Chief credit availability and this is the I n v e s t m e n t O f f i c e r, s a i d best time to invest in credit risk investors have to moderate their ICICI Prudential AMC invests `334 crore in credit risk fund in Q3 Business Standard | January 10, 2020 Prudential Asset Management “At ICICI Prudential, we convey a Joydeep Sen, founder of own money on the line. Company on Thursday said it lot about our values and beliefs wiseinvestor.in, said, “It pays to invested ` 334 crore in its credit that are ingrained in the risk invest with managers who invest Earlier in March 2016, Sebi made risk fund in the December 2019 management practices and in their funds. Investors want to it mandatory for asset manage- q u a r t e r, a m o v e t h a t m a y investment process that we use. know whether fund manager ment companies (AMCs) to encourage investors to put in Simply put, we walk the talk,” eats their own cooking. So, if disclose in their Scheme their money in the fund. ICICI Prudential AMC MD and anybody does it, it is a good Information Documents the CEO Nimesh Shah said in a indicator of future success and aggregate investments made by The fund house has invested statement. alignment of objectives. This AMC board of directors, fund ` 256 crore in December and ` 78 way, fund houses can clearly managers and other key crore in October. “Speaking on behalf of the demonstrate their conviction to personnel. stakeholders, I can confidently investors and distributors.” Credit risk funds invest mainly in say that we do eat our own Industry experts said it is Kotak Mahindra AMC in 2015 corporate bonds that are below cooking and invest side by side encouraging for investors to see took a stance that made it the highest rating assigned by with our investors,” he added. that fund managers believe mandatory for its employees to credit rating agencies. enough in the fund to put their invest in their schemes. In March 2019, DSP AMC followed. At ICICI Prudential, we convey a lot about our values and beliefs that are ingrained in the risk management Credit risk fund was in news in practices and investment process that we use. Simply 2019 after a series of defaults put, we walk the talk. and downgrades shook up the NBFC space. But, these incidents affected only those fund houses that had exposure to those select papers.

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, FEBRUARY 2020 Follow-up to corp tax cut needs follow-up beyond budget The Economic Times | February 02, 2020 This year's budget was primarily was largely imminent. At a time achieved cannot be solely S Naren focused towards rationalising when most of the global markets through budget announce- ED & CIO the tax burden of middle income corrected on account of the ments. Moreover, the price of ICICI Prudential Mutual Fund taxpayers. Furthermore, the outbreak of coronavirus, Indian real estate in many urban areas announcements should be seen markets were resilient and continues to be elevated, long-term investor. as a follow-up to the corporate continued to trade at all-time thereby making it unaffordable tax cut announced in September highs. As a result, the valuations when compared to the income The sectors we are positive on 2019. So, from an incentive of megacaps were largely levels prevalent in the metros. include power, pharma, health- perspective, the significant part stretched. Also, our asset care and PSUs. Small caps is was already executed. So far, allocation models were showing For a mutual fund investor there another area which is attractive individuals with lower income, that equities as an asset class are three themes to look at - but one needs to have an whose ability to save was was not undervalued. Globally, asset allocation, long-term SIPs investment horizon of at least minimal, were placed at a higher 2019 was a year when the central through goal-based investing five years-plus. tax level when compared to banks ensured that the markets and investing in accrual debt individuals with higher ability to did well by bringing down rates, funds, especially credit funds We believe that accrual has the save. This anomaly has been despite the economy being and moderate duration funds. potential to emerge as an addressed through the new under pressure. We expect Each of these themes remains interesting investment pocket personal income tax slabs. volatility in equity markets to unaffected by the budget over the next three years despite continue due to elevated global announcements. the negative news flow in this Similarly, even in case of equity valuations, coupled with s p a c e o v e r t h e l a s t y e a r. Dividend Distribution Tax (DDT), geopolitical developments. TOP SECTOR PICKS Currently, accrual carries suffi- rationalisation has occurred. The steps taken by the govern- cient margin of safety. Earlier, DDT was the same for There is a need for more support ment to encourage sovereign individuals at the lowest and the for the SME sector and problems wealth funds to invest in Indian highest tax brackets but now that in the real estate sector. While it infrastructure are positive. It inequity has been removed. We is necessary to find solutions for could be a path-breaking step, believe both these measures are both SMEs and real estate, the given the quantum of funds a very healthy development. underlying problem of high real globally, which are currently estate prices has to be addre- yielding zero to negative interest We are of the view that the ssed. But the steps through rates. So, infra theme has correction seen in the market which these are likely to be become attractive for a patient Investors should shift to value stocks from overpriced names The Economic Times | January 07, 2020 It is tough to predict how the It is tough to predict how the stocks ranked 251 and below, the oriented names. geopolitical situation will pan geopolitical situation will pan market capitalisation has fallen out, but higher crude oil prices out. However, crude oil going up by 52%. Incidentally, in 2007, What has changed in the could be negative for India, said is negative for India. If the investors believed that roads smallcap space? S Naren, executive director, ICICI situation deteriorates further were a requirement and cars Prudential Asset Management. from here, it will impact equity were not essential. That era is In mid- December, our market In a press meet on Monday, markets, the rupee and also the known as the infrastructure cap model has suggested that Naren said investors can make fixed income markets. boom days. Currently, investors the share of smallcaps in the lump sum investments in believe that cars are a overall market cap has fallen to smallcaps, which are In 2019, only the top 10-15 requirement but roads are not, 8%, which is similar to 2013 undervalued after the recent sell- stocks rose, while midcaps and which again may prove to be a levels. This is after having risen off. Edited excerpts: smallcaps remained weak. Will folly in the days ahead. As an to as high as 18% in 2017. this continue? investor, it is important to Smallcaps are currently offering How will the geopolitical remember that the current rally is a better margin of safety in terms tensions between Iran and US For the top 10 stocks, the market very narrow in nature. The Indian of risk spread over large caps. impact India? cap has risen 43% from February economy and the resultant Our models are decisively 2018 to December 2019 while for market is more than the top 10 turning more positive on companies which currently smallcaps. Smallcaps are currently offering a better seem to be shouldering the up- margin of safety in terms of risk spread move. It is suggesting lump sum as well over large caps. Our models are as staggered investments in decisively turning more positive on Historically, it has been seen that smallcap funds with a 3-4 year smallcaps. with time such concentrated rally view. In the last two years, moves become broad-based in a smallcaps have corrected by gradual manner. So, it is essential 40% and have underperformed for investors to look beyond the significantly compared to overpriced quality names and largecaps. I look at economic over a period, shift to value- cycles. Today, credit growth is at Contd. on page 4

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 2020 Interview Time to look at debt MFs in a big way Mint | February 10, 2020 S Naren in India is very much; of course it money and that’s why I believe I think there has been superb ED & CIO is there only for survivors and I that credit continues to be an countercyclical investing in ICICI Prudential Mutual Fund would want to believe that we interesting asset class even equity by most investors. We should have 3 survivors and it today and I believe that one need to see that same The recent policy that the would be good that a big country should look at the asset class countercyclical big lump sum Reserve Bank of India (RBI) has like India has 3 survivors and all and take weak positions in, large investment in debt and come up with of giving term the 3 should have a superb notwithstanding whatever has credit from investors – that is still repo, may act as a trigger outlook for the next decade or happened in the last few years. missing and we are hoping that because any bank that has two. That is the way I look at it. investors start that starting today surplus government securities What is the mood in terms of and because that opportunity gets access to very cheap money The other pet theme of yours flows into mutual funds? they are missing. to do onward lending, says S. has been that now people Naren, executive director and should start buying credit Investors in India have been If you look at the kind of returns chief investment officer, ICICI funds. Does that actually get a behaving brilliantly. I believe that that debt mutual funds have Prudential AMC. Edited excerpts leg up now after the policy? if you want to make money in any delivered in the last one year in of an interview: asset class you have to be many of the ICICI Prudential In my framework of valuation countercyclical. schemes, not that past returns is One of the big contra calls that cycle, sentiment and trigger a function of future, clearly many you had 2 years ago was on there is an important role for So whenever markets go up the of them have missed the telecom. That has played out trigger and the recent policy that flows drop and whenever opportunity of investing one year phenomenally well. Of course the RBI has come up with of markets go down flows go up; back in very big way but I would now only two stocks are listed giving term repo, maybe that will what more do you need as a recommend investors to look at there but do you reckon this act as a trigger because any bank mutual fund and I would say, on debt mutual funds in a big way. could continue? which has surplus government the equity side of the business securities gets access to very we have had a phenomenal Somehow the ‘mutual fund sahi Our view is that as long as we are cheap money to do onward period over the last 3-4 years hai’ campaign has resulted in a dependent on telecom, the few lending. with very countercyclical flows. lot of SIP flows in equity but has survivors should do better not resulted in big flows into debt because the amount of money So maybe that will act as a trigger So whenever market goes up mutual funds and I look forward that we spend on telecom each to bring down rates and maybe significantly we see a slowdown to big flows and debt mutual month, it’s the best value. that was the most innovative in non-SIP flows and whenever funds because they are also transmission mechanism that the market corrects significantly equally very important part of When you go to any other RBI could have thought of and we see pickup in nonSIP flows. every investors’ asset allocation. country and look at the quantum maybe that will act as route to of money you spend on telecom give good return to credit funds. SIPs have been stable. It’s only We have been successful in and the kind of value that they on credit and debt side of the getting money in asset allocator, get, it is ridiculously high for the However, in my investment business that we have not seen fund of fund and categories like same value that they get there. philosophy if valuations are that countercyclical flows and balanced advantage but we have attractive, cycle is attractive we have been appealing to not been successful in getting So I believe that the opportunity given that there have been so investors that there also we need mega flows into pure debt many negative credit events over to see countercyclical flows and mutual funds and we think that the last 2 years and sentiment is we need to see mega flows at there is a scope there which is also extremely attractive that this point of time and the asset bigger and even bigger than people are not willing to look at class is so interesting and we equity mutual funds. Somehow the asset class in a big way. never stop telling every investor we are not succeeding. that they should consider I believe that you should not investing in a structural asset bother about triggers; class called debt and credit and automatically one day a trigger we never miss the opportunity to will come and then you will make tell them. Investors should shift to value stocks from overpriced names Contd. from page 3 the bottom. When credit growth investors? tensions, all of which tend to be Valuations of several PSU is at a bottom that is the time to unpredictable and are factors stocks are low. Is there value in take risk. You take risk in an Earnings growth has not come in which can further cause markets these set of stocks? undervalued asset class. An a big way in the last five years. to remain volatile. Given this undervalued asset class is the Quality and mega-caps are two setting, for a retail investor, it is While valuations of several PSU smallcap segment. So, you are asset classes that have peaked. imperative to be mindful of asset stocks are attractive, they have investing in an undervalued Further, given that the recovery in allocation. While in the short run not recovered because there is a asset class at the bottom of the domestic macros is likely to be the benefits of asset allocation fear of disinvestment in the economic cycle. Over 3-5 years, protracted it is very likely that the may not be visible, it is only over March quarter. If that does not we feel that smallcaps would markets may tend to be volatile the long term that one tends to happen, PSUs could turn outperform large caps. in the interim. Add to this mix, appreciate the impact asset attractive. global factors such as the rise in allocation has on portfolio gains. What are you telling your crude oil prices, geopolitical

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 Corner 5TARAKKI TIMES, FEBRUARY 2020 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Ashwin Vajani Ashwin Vajani Advisory, Mumbai Asset Allocation for Long Term Wealth Creation Venturing into financial advisory in 1990, Ashwin Vajani has spent more than half of his life advising his clients for a prosperous financial future. He entered in this space at the age of 18 years, as setting up an advisory firm called for zero or insignificant capital to start with. With control over his expenses and staying financially responsible, Ashwin has been profitable in his advisory from the very first month of his professional career. Ashwin started with an agency for public sector mutual funds in 1990, and since then, he has been advising his clients to invest in mutual funds only. While it might seem a single investment product, a wide range of schemes available to invest in making it more relevant as an investment product, suiting different financial goals and risk profiles. \"I was fortunate to conceive my business during the beginning of a bull run period in early 90s. It was the time when the markets were rising consistently, and everyone wanted to invest in stock markets.\" Ashwin recalled his earlier days. Such euphoric atmosphere for investing in equity markets helped him gain easy business. During those times, even the mutual funds were allowed to offer guaranteed returns, and thus, could be seen as a proxy to the fixed deposits. Ashwin added, \"Few of the schemes then could offer 15%+ assured returns, with firm allotment. The investment experience of clients got pleasant when such schemes could generate a 20 to 30% return in two to three months.\" However, just like every market cycle, the bull run was followed by the lengthy correction cycle. Post the market scam got unearthed in 1992, the markets remained range-bound for the next 5-6 years. This was the time Ashwin focused on building debt portfolios for his clients. Govt. policies were another breather for Ashwin, as indexation benefit was announced for debt mutual funds. While the mutual funds were not as popular an investment product during the late 1990s, Ashwin's strategy to focus on debt funds reaped excellent benefits for him. \"While everyone focused on building equity portfolio for their clients due to potential of higher returns, I focused on debt funds during the times of correction. As the expectations of debt investors tend to be moderate, they reflect more patience and continue to stay invested for longer term.\" Ashwin quipped while sharing his experiences. A pleasant investment experience encourages his clients to share their references with Ashwin. Man is a learner every single day, and Ashwin is no exception. He sincerely accepts some of the investing mistakes he and his clients made during the early stages of his career, just like the early- stage investments in one of the marquee mutual fund schemes during the NFO in the year 1995. While he could collect around ` 2 crores as NFO application for that fund, all of his clients and he too redeemed within the first 4-5 years of the investment. Ashwin shares, \"Me and my clients redeemed even when there was no genuine need of the funds, and we missed the rally by miles. Had we stayed invested till today, the initial investment of` 2 crores in 1995 would have been around ` 216 crores by Oct. 2019. This is precisely the power of equities over long term.\" Advocating asset allocation as the vital ingredient for long term wealth creation, he advises his clients to stay invested across asset classes and encourages them to stay invested across the market cycles. Such investments over the long term increase the probability of positive experiences for the clients, and as it is always said, word-of-mouth publicity is the best publicity one can get. Happy Investing! ARN - 2224

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, FEBRUARY 2020 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Paresh A. Shah Shah Wealth Creators, Mumbai Driving the Road from being a Common Man to a High Net-worth Individual (HNI) Paresh A. Shah was living a happy life while he was working with a printing press in Mumbai, and had his wonderful plans for life. However, destiny does play a role in shaping one's future. His life turned upside down with a train accident while he was on his way to office once. Since his health did not allow him to travel, he had to quit his job. Consequently, he witnessed some hard times financially, as he was at home with no income for more than a year. This was the time when he realized the importance of having a cushion of financial savings for meeting the contingencies and achieving different financial goals. As he did not want anybody else to experience such hard times, he decided to step into the world of financial advisory and steer individuals towards insurance, fixed deposits, PPF, and other post office products and gradually Mutual funds. His initial clients were his acquaintances, colleagues, friends, family members, etc. At the same time, he also interacted with chaiwallahs, shoeshine boys on railway platforms, panwalas, auto-rickshaw drivers, watchmen, hawaldars, waiters, etc. with the intention of encouraging them to start saving steadily. His network of clients steadily grew with business people, professionals, entrepreneurs, etc. Paresh recalls, \"While Mutual funds have steadily been emerging as preferred investment product due to widespread promotional campaigns, things were not like that always. Initially, it used to be difficult to convince my clients to invest in Mutual funds.\" He understood the pulse of financial markets and that of his clients, which helped Paresh to establish a sense of trust with his clients, helping him lay a strong foundation for long-lasting relationships. Paresh now offers a broader spectrum of advisory services, including Financial planning, Insurance planning, Tax planning, Wealth planning, Retirement planning, Estate planning etc. and presently manages advisory portfolio of more than Rs. 225 crores for his clients. Paresh further shares, \"I want to be known as Manufacturer of HNIs, helping them create long term wealth.\" As a Financial Advisor of masses, he has learned to be patient with his clients and talks in the language which his client understands. While the world of financial planning can stay crowded with technical and financial jargon, he tries to simplify the conversations to the extent possible. He generally relates making lumpsum investments as similar to investing in bank FD, Systematic Investment Plan (SIP) as Recurring Deposits (RDs), and Equity Linked Savings Schemes (ELSS) as similar to PPF, etc. Having learned the financial lessons first hand, he describes patience as a blessing in the financial plans. He further adds, \"whether you are in business or profession, your success will generally be U-shaped and not V-shaped. One will have to go through many market cycles to be on top. Always remember that Rome was not built in a day.\" Just like the way drugs are tested in human clinical trials, Paresh also claims to invest in every scheme that he recommends to his clients. He adds, \"For the last 25 years, I have maintained this discipline of investing in schemes himself first and evaluating them for 6 to 12 months. Only once I am convinced about a particular scheme, I recommend these schemes to my clients.\" Trusting the potential of long term wealth creation through equity markets, he prefers to sell equity schemes to his clients with long term investment horizon. Helping his clients to steer through the volatile times, he advises them to continue to stay invested, instead of redeeming the investments and further continue to make additional investments in the markets for long term wealth creation. ARN - 0478

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. Fund Review 7TARAKKI TIMES, FEBRUARY 2020 ICICI MF at top again in debt segment Hindu BusinessLine | February 03, 2020 Fund houses HDFC, Aditya Birla claim next ranks Notwithstanding the series of (formerly Reliance MF) for the Revenue dues which entails an Independent financial advisor defaults by corporates last year fourth slot and Kotak MF outgo of over ₹1-lakh crore for Joydeep Sen of Wise Investors and more recently Vodafone captured the fifth position with the industry. Vodafone Idea alone said ICICI MF is well diversified Idea, ICICI Prudential Mutual an AUM of `68,670 crore had to pay `55,000 crore. on both the assets and liability Fund has managed to attract (`52,530 crore). sides. investment in debt schemes and As of December-end, mutual regain the top slot. The assets under debt fund of funds had a combined exposure For instance, in their credit risk the mutual fund industry jumped of `3,390 crore to Vodafone Idea. fund portfolio, their investment is ICICI Pru MF, which has not seen 18 per cent in the last one year to spread across 85 securities, a single default or delayed `7.92-lakh crore (`6.72-lakh In fact, debt investors of mutual making per security dependence payment of interest in any of its crore) as of last December. fund have been at the receiving of about 1.15 per cent. Hence, schemes, has managed to push end since 2018 with a series of even if there are any incidents, its overall debt fund (excluding Write-down blues defaults starting with DHFL and the diversification helps would liquid and overnight) market The age-old belief that debt IL&FS. protect the downside, he said. share to 15.6 per cent last funds are safer than equity was December from 13.8 per cent in shattered with some of the Nimesh Shah, Managing Similarly, they have an investor December, 2018. mutual funds such as Franklin Director & CEO of ICICI Pru MF, concentration limit of `50 crore, Templeton, UTI, Aditya Birla and recently said the fund house’s which ensures that no single ICICI Pru MF debt fund AUM Nippon India taking write-downs decision to keep credit risk large investor can influence the jumped 33 per cent to top the on their investments in Vodafone management separate from fund investment or redemption industry at `1.24-lakh crore Idea, resulting in huge losses to management almost 10 years movement. (`93,164 crore) in the last one investors. ago helped protect its investors’ year while that of HDFC MF and money from defaults. Aditya Birla MF were at `1.08- The worry for mutual funds lakh crore (91,570 crore) and increased after the Supreme Many of the other MFs had `1.06-lakh crore (`94,325 crore). Court rejected the review higher yield-to-maturities (YTM) petition filed by telecom than ICICI MF debt schemes, but SBI MF with an AUM of `82,754 companies seeking a review of it believed in not chasing higher crore toppled Nippon India MF its judgment on Adjusted Gross yields, he said. ICICI Mutual Fund walks the talk, invests in own fund Hindu BusinessLine | January 10, 2020 Pumps in `334 crore in Credit Risk Fund Even as retail investors shudder it mandatory for its employees to an independent financial advisor stands at `3.4-lakh crore. to invest in credit risk fund due to invest in its schemes and DSP said it is heartening to see ICICI the series of corporate debt AMC followed in the footsteps of MF walking the talk and putting 10.14 % return defaults, ICICI Prudential Asset Kotak last year. its money where its mouth is. Over the last six months, ICICI Management Company has Prudential Credit Risk Fund has pumped in `334 crore in its own However, credit risk funds have Nimesh Shah, Managing posted 10.14 per cent return Credit Risk Fund in the last two been witnessing continuous Director & CEO, ICICI AMC, in a against peer group average months. Thus, it is following outflow in the last few months. recent media interaction said the return of 4.79 per cent. During what it is preaching. The redemptions have now recent defaults by a few the last one year, it has delivered slowed down a bit with a few corporates was due to 9.49 per cent against its peer The fund house had invested investors going against the tide overleveraging of those return of 4.83 per cent. `256 crore in December and `78 and starting to invest in these companies. crore in October from its funds. Joydeep Sen, Founder of networth. As of last September, There is no systematic risk in this wiseinvestor.in, said it pays to ICICI AMC’s networth stood at In December, the outflow from sector and investors should bet on managers who invest in `1,262 crore. credit risk funds slowed down to relook at this category of their funds own as it indicates `1,191 crore against `1,899 investment as the yields are very the future success and In March 2016, SEBI made it crore. The overall assets under attractive, he said. alignment of his objectives. This mandatory for AMCs to disclose management (AUM) of credit risk way, fund houses can clearly in the Scheme Information funds fell marginally last month ICICI Mutual Fund has not demonstrate their conviction to Document the aggregate to `62,705 crore from `63,755 suffered even a single default on investors and distributors, he investments made by the AMC’s crore in November. its debt investments and follows added. board of directors, fund a stiff due diligence process managers and other key ‘No systemic risk’ before investing in any corporate personnel. While ICICI Mutual Fund has bond, said Shah. been advising investors to bet on Kotak Mahindra AMC had made its credit risk fund, Santosh Pai, ICICI Prudential MF’s AUM

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 2020 Fund Review ICICI Prudential Long-Term Bond Fund Hindu BusinessLine | January 13, 2020 inflation, gross domestic product growth, Fixed-Income Statistics trade deficit, private sector and government Investment Strategy borrowings, monetary policy, and so on. Fixed Inc Style Box (Long) High Ltd. Before implementing any trades, final The team behind this offering remains qualitative research and quantitative Average Eff Duration - one of the largest fixed-income teams analysis is done to understand and moniter in the industry specialising in different risk in the portfolios. Banthia tries to exploit Average Eff Maturity 11.2 areas. Manager Manish Banthia plies an opportunities between AAA-rated bonds, G- active investment style and is driven by the secs, and SDLs. Average Coupon 8.0 quest for value with a contrarian bent. He is keenly attuned to market expectations and Taking lower-credit bets is not a major part of Average Price - developments while constructing the the strategy, despite the fund's mandate to portfolio. maintain a credit profile of 80:20 the sub- Fixed-Income Style Box AAA rated securities rarely account for more The fund uses an investment process with a than 10% of the portfolio. The managerhas High focus on safety, liquidity, and returns. It has a been avoiding investment in AA and below comprehensive in-house investment rated bonds. This aspect of the strategy is Med approach driven by a seasoned group of also influenced by the intent to keep the investment and risk-management portfolio liquid. However, Banthia takes Low professionals. The investment process tactical bets whenever he finds attractive Ltd Mod Ext integrates quantitative and fundamental opportunities. analysis following a disciplined and value- Top Holdings Portfolio based approach. Top-down macro themes Weighting outline the overall strategy and provide a Govt. Stock framework for bottom-up security selection. National Bank for Agriculture and (%) Calls on duration and interest-rate direction Rural Development are determined through a detailed analysis Housing and Urban Development 54.13 of various influencing factors such as Corporation The Great Eastern Shipping Company 9.29 Calendar Year Returns 15.7 16.9 National Highways Authority of India 13.2 14.7 Rural Electrification Corporation 8.50 Reliance Utilities and Power Private Calculation Benchmark: None Net Current Assets 6.80 Treps 6.39 10.3 9.2 Indian Railway Finance Corporation 6.25 10.0 4.50 2.88 Return 8.0 6.3 6.8 4.1 5.1 0.61 6.0 3.2 3.8 0.28 4.0 2017 2.0 0.0 2018 2016 2015 2014 YTD ICICI Pru Long Term Bond Gr India Fund Long Duration Fund Snapshot Trailing Returns Morningstar Category India Fund Long Duration Data Point: Return Calculation Benchmark: None Fund Size (`) Inception Date 8.2 billion YTD 1 Year 3 Years 5 Years 10 Years Annual Report Net Expense Ratio 9/7/1998 Morningstar Retail Overall ICICI Pru Long Term Bond Gr 10.26 10.72 7.00 8.42 7.88 Manager Name 1.76 Minimum Investment (`) - India Fund Long Duration 6.32 7.48 6.11 7.06 7.06 Morningstar Analyst Rating Manish Banthia 5,000 - @2017. All rights reserved. The Morningstar name and logo are registered marks of Morningstar.Inc. This report is issued by Morningstar Investment Adviser India (\"Morningstar\"), which is registered with SEBI (Registration number INA000001357) and provides investment advice and research. Please visit www.outlookindia.com/outlookmoney/invest/picking-the-right-mutual-fund-2542 and read important statutory disclosures, as mandated by SEBI, regarding the information, data, analyses and opinions given in this report.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. Fund Review 9TARAKKI TIMES, FEBRUARY 2020 ICICI Prudential Mid-cap Fund Manager Biography and Fund Strategy The fund is co-managed by Mrinal investing. Having said that, the strategy Equity Portfolio Date: Singh and Mittul Kalawadia. While does have an apparent growth bias. While Sectors 31/12/2019 Singh has been asssociated with this the bottom-up approach is evidently more fund since 2011, Kalawadia joined in 2016. prominent, the top-down isn't ignored. An Basic Materials % Naren is at the helm of the investment element of benchmark alignment has been Consumer Cyclical function and his contribution to the top- introduced by reducing the portfolio's Financial Services 18.7 down and sector views are a big postive. deviation from its benchmark. Real Estate 22.8 Consumer Defensive 22.7 The manager scout for companies with The fund is run as a true-to-label mid-cap Healthcare differentiating factors such as technological strategy. Emphasis is laid on constucting a Utilities 0.0 prowess, cost advantage, and strong pricing low risk portfolio. They are also particularly Communication Services 1.9 power among others that can give the wary of liquidity risk, which is inherent to the Energy 6.1 company a sustainable edge over peers. In strategy. Therefore, they take measures to Industrials 3.6 the case of smaller companies, managers minimise its impact on the portfolio with the Technology 38 will invest only if they are comfortable with help of large-cap and cash exposures. Total 0.7 their management. The highlight of this 15.0 strategy is the contrasting investment Top Holdings 4.6 styles, with which both the managers 100.0 construct the portfolio. Mrinal Singh prefers Indian Hotels buying stocks that are attractively priced and PI Industries Portfolio stay invested until they deliver. Mittul Tata Chemicals Weighting Kalawadia, on the other hand brings in his Muthoot Finance growth-oriented investment approach, Exide Industries (%) which compliments Mrinal'svalue style of LIC Housing Finance Fortis Healthcare 5.23 Calendar Year Returns Voltas The Federal Bank 4.92 Calculation Benchmark: S&P BSE Mid-Cap TR` Infosys Ltd 4.69 100 3.97 80 3.72 Return 60 42.9 49.9 3.51 40 3.21 20 3.9 4.4 -0.6 -2.1 -10.8 -12.5 4.8 9.3 5.1 8.7 0 2015 3.06 -20 YTD 2019 2018 2017 2016 2.85 ICICI Pru Mid-Cap Gr S& BSE Mid-Cap TR` 2.67 Trailing Returns Fund Snapshot India Fund Mid-Cap Data Point: Return Calculation Benchmark: S&P BSE Mid-Cap TR` Morningstar Category 19 billion YTD 1 Year 3 Years 5 Years 10 Years Fund Size (`) 28/10/2004 Inception Date 2.43 ICICI Pru Mid-Cap Gr 3.91 4.85 8.73 7.03 12.11 Annual Report Net Expense Ratio *** Morningstar Retail Overall S&P BSE Mid-Cap TR` 4.39 3.93 8.73 9.21 9.70 Manager Name Multiple Minimum Investment (`) 5,000 Morningstar Analyst Rating Bronze

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. 10 TARAKKI TIMES, FEBRUARY 2020 Fund Review ICICI Prudential All Seasons Bond Fund Healthy returns with moderate risks Hindu BusinessLine | January 13, 2020 The fund has delivered 10.4%, 6.9% and 8.8% returns over one-, three-, five-year periods The real GDP growth estimate for the For bond markets Hence dynamic bond funds that have the current fiscal, pegged at a 11-year low The 10-year government bond yield had flexibility to invest across duration are ideal by the Central Statistics Office (CSO) moved up sharply post the RBI policy in at this juncture, for those wanting some recently, has lent little comfort to investors. December (when it held rates contrary to piece-of-the-rate action. Given that the fund expectations of a rate cut), by around 30 bps manager’s call is important - active increase The sharp slowdown, implying weaker tax to 6.7-6.8 per cent levels. But it has come (to cash in on rallies) or decrease (cap collections, would add to the Centre’s fiscal down slightly, thanks to RBI’s intervention. downside) in duration of the portfolio - burden, implying a rocky road ahead for the investors should bet on funds with a long Indian bond market. In a bid to ease the interest rates on long- and consistent performance. term government bonds, the RBI has been A highly likely oversupply of government announcing simultaneous sale and Performance bonds in the last quarter of the fiscal, owing purchase of government bonds (operation ICICI Prudential All Seasons Bond Fund has to higher central government borrowings, twist), using proceeds from the sale of short- consistently delivered across rate cycles. will weigh in on the bond market. term securities to buy long-term government debt papers. For instance, while the fund delivered strong While the risk of the looming fiscal slippage returns of 16-19 per cent in the good years of and higher inflation would exert upward The spread between 10-year G-Secs and 2014 and 2016, it managed to deliver a 6 per pressure on the yields, there could be ad hoc two-year government securities - it had cent return in lacklustre 2018. In 2019, a short-term rallies owing to RBI’s intervention widened to 90-100 basis points - has come good year for gilt funds, the fund also (operation twist) and a possible rate cut in down sharply to 35 bps now (thanks to managed to cash in on the rally and deliver a the latter part of the year. another special OMO (open-market 10 per cent return. operation) by the RBI last week). While taking exposure to long-term gilt The scheme’s average maturity has been funds would be risky at this juncture (rates But there are still upside risks to long-term varying from 1.5 years to as high as 10 years nearly bottoming out), betting on dynamic bond yields that could hurt investors. over the past three years - the active bond funds that invest across durations may Remember, bond prices and yields are management helping it deliver category- be a good option. inversely related and longer-duration bonds beating returns. The fund has mostly are more sensitive to interest rates. invested a chunk of its assets in G-Secs and Dynamic bond funds essentially ride on rate high-rated (AA+ and above) bonds in the movements and the fund manager alters the The Centre’s fiscal deficit is already at 115 past. Recently, it has taken some exposure duration of the fund portfolio depending on per cent of the budgeted figure (according to AA rated bonds. These include well- the expectation of rate movements. to Controller General of Accounts as of known names such as TMF Holdings (a November 2019). subsidiary of Tata Motors), Torrent Power ICICI Prudential All Seasons Bond Fund is a and AU Small Finance Bank. consistent performer within the category The Centre had pegged its gross market and carries a five-star rating on BusinessLine borrowings at `7.1- lakh crore in the current The fund still holds a large portion in G-Secs Star Track Mutual Fund Ratings. fiscal (up from `5.71- lakh crore last year). A (35 per cent) and AAA rated bonds (20 per significant slip in fiscal deficit - as is widely cent), which mitigate the credit risk. The The fund has delivered 10.4 per cent, 6.9 per expected - will lead to an increase in the scheme carries an average maturity of 6.4 cent and 8.8 per cent returns over one-, supply of bonds in the last quarter of the years and a yield-to-maturity of 8.2 per cent. three- and five-year periods, beating fiscal. category returns by 2-2.5 percentage points. With inflation on the rise and unlikely to Investors with a moderate risk appetite and abate in the near term, the RBI may go in for a two- to three- year time horizon can invest a long pause, despite growth compulsions. in the fund. This will also cap the upside in bond prices.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. Fund Review 11TARAKKI TIMES, FEBRUARY 2020 mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | February 2020 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 9.22 7.37 12.39 25,025 AGGRESSIVE HYBRID ICICI Prudential Equity & Debt Fund 6.90 7.92 13.08 23,073 CONSERVATIVE HYBRID 8.16 8.54 9.81 1,710 ICICI Prudential Regular Savings Fund INTERNATIONAL 8.62 8.46 NA 95 ICICI Prudential Global Stable Equity Fund 16.12 13.56 NA 437 ICICI Prudential US Bluechip Equity Fund 1-year return (%) 3-year return (%) 5-year return (%) Corpus (Rs cr) FUND CORE DEBT-ORIENTED 10.21 7.44 8.23 11,339 CORPORATE BOND ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | February 2020 FUND Value Research Returns (%) Fund Rating 3-month 6-month 1-year 3-year 5-year 3.24 7.67 EQUITY: LARGE CAP 3.48 8.68 14.13 11.17 7.72 ICICI Prudential Bluechip Fund 3.85 8.36 HYBRID: EQUITY SAVINGS 2.53 6.37 12.4 7.79 8.45 ICICI Prudential Equity Savings Fund 2.09 6.16 12.31 8.53 7.77 HYBRID: AGGRESIVE 2.57 8.41 ICICI Prudential Equity & Debt Fund 2.03 5.76 10.57 8.51 8.2 HYBRID: CONSERVATIVE ICICI Prudential Regular Savings Fund 4.56 11.06 6.75 DEBT: MEDIUM- TO LONG-TERM ICICI Prudential Bond Fund 4.11 10.46 6.97 DEBT: DYNAMIC BOND 4.39 9.92 7.42 ICICI Prudential All Seasons Bond Fund DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. 12 TARAKKI TIMES, FEBRUARY 2020 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | February 2020 Scheme Name BL Rating YTD Absolute Trailling Returns (%) 5 Year CAGR 0.5 1 Year CAGR 3 Year CAGR 8.1 ICICI Prudential Bluechip Fund 2.2 6.5 ICICI Prudential Large & Mid Cap Fund 2.1 12.2 12.2 8.6 ICICI Prudential Multicap Fund 4.6 11.0 8.3 6.9 ICICI Prudential Midcap Fund 5.9 10.7 10.6 6.0 ICICI Prudential Smallcap Fund 3.2 7.4 8.9 4.2 ICICI Prudential Focused Equity Fund 2.8 20.2 7.6 5.2 ICICI Prudential Value Discovery Fund 1.5 6.2 6.7 7.6 ICICI Prudential Long Term Equity Fund 5.7 6.4 (Tax Saving) 2.2 12.6 11.0 4.6 ICICI Prudential Dividend Yield Equity Fund 2.9 9.8 ICICI Prudential FMCG Fund 2.9 2.4 5.7 3.6 ICICI Prudential Infrastructure Fund 1.0 9.0 14.3 12.3 ICICI Prudential Banking & Financial Services 5.8 9.9 6.5 7.6 ICICI Prudential Technology Fund 4.6 16.7 16.5 - ICICI Prudential P.H.D Fund 1.0 3.9 16.6 8.6 ICICI Prudential Equity & Debt Fund 1.3 8.9 - 7.8 ICICI Prudential Equity Savings Fund 0.5 12.1 9.5 8.3 ICICI Prudential Ultra Short Term Fund 0.5 12.0 8.2 8.2 ICICI Prudential Savings Fund 0.4 8.3 7.5 7.6 ICICI Prudential Money Market Fund 0.6 8.8 7.6 8.0 ICICI Prudential Short Term Fund 0.8 7.7 7.4 7.7 ICICI Prudential Medium Term Bond Fund 0.6 9.7 7.0 7.8 ICICI Prudential Bond Fund 0.3 9.6 6.9 8.3 ICICI Prudential Long Term Bond Fund 0.5 11.1 6.8 8.4 ICICI Prudential All Seasons Bond Fund 0.6 13.0 7.4 8.2 ICICI Prudential Corporate Bond Fund 0.7 10.5 7.0 8.2 ICICI Prudential Credit Risk Fund 0.6 9.9 7.4 8.4 ICICI Prudential Banking & PSU Debt Fund 0.4 9.7 7.6 8.1 ICICI Prudential Gilt Fund 0.5 10.2 7.0 8.5 ICICI Prudential Regular Savings Fund 0.8 11.1 6.2 8.8 ICICI Prudential Balanced Advantage Fund 1.5 10.0 8.7 7.3 ICICI Prudential Child Care Fund (Gift Plan) 12.5 10.2 10.5 9.5 Source: NAV India; NAV for the growth option as on 23-01-2020. 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.