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Tarakki Times English July-August 2021

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\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS MUMBAI | JULY-AUGUST 2021 | PAGES 22 Professional Views For value to deliver, interest rates have to go up Pg. 3 Mint | September 08, 2021 Be dynamic Telegraph | July 12, 2021 Sankaran Naren In the time from World War II till we can state with confidence is Pg. 4 ED & CIO 2008, central banks stayed away that practising asset allocation 30 years of liberalization: ICICI Prudential Mutual Fund from printing and pumping of will work favourably in such S Naren on wading through money into the global financial times. irrational markets and foreign Mint spoke with S. Naren, system. Hence, we do not know investor frenzy of the 90s Executive Director and Chief the likely long-term side-effects There are a number of IPOs Moneycontrol | July 25, 2021 I n v e s t m e n t O f f i c e r, I C I C I of quantitative easing worth $25 coming to the market. Is that a S. Naren, ED & CIO Prudential AMC, on markets, trillion thus far. Unfortunately, sign of the market topping out? Pg. 5 valuations and lessons for first- there is very little economic Metal story not over, look time investors. Edited excerpts literature which helps us At this point, we believe it is very for opportunities in from the interview: understand this aspect. important for investors to manufacturing sector practice asset allocation and that ET | July 16, 2021 At the start of 2021, given the Probably two decades later, we we should make choices based market outlook, you suggested will be in a much better position on earnings connected to 2021 Anand Shah, Head - PMS & AIF Investments asset allocation funds. Since to understand the impact of or 2022, invest in names which then, there has been a rally in these decisions. Till then, from a have steady operating cash Pg. 6 equity. So, do you think this rise mutual fund point of view, we are flows, dividend yield, etc. is unjustified? committed to believing in asset Flexicap funds help balance risks, returns allocation and that while valua- The key learning from 2007 is Mint | July 13, 2021 Today, the global equity market is tions expand due to factors that investors who invested in largely driven by central bankers, which are difficult to guess, at IPOs based on 2014 earnings Pg. 7 given that central banks have some point in future, they will were in for a disappointment. flooded the market with money; revert causing potential losses to There is a fair amount of froth in Flexicap Fund is an interesting first from 2008, and later in a lot investors who don’t remain many parts of the markets, proposition for long-term more aggressive manner from disciplined. particularly in new-age areas. investors March 2020. If this trend Unlike Asia which has seen FE | July 11, 2021 continues, market valuation is While it is impossible to predict periodic market corrections, bound to expand. At the same w h e n t h i s w i l l o c c u r, t h e since 2012, US equities have Rajat Chandak, Senior Fund Manager time, policymakers have kept possibility remains it could play barely witnessed a meaningful debt interest rates very low. out when central banks decide to correction. Pg. 8 tighten monetary policy. What ICICI Prudential Value Discovery Fund As a result, these are challenging AUM reaches Rs. 21,195 crore; but interesting times for fund The key learning from delivers 20% CAGR in 17 years managers both in India and 2007 is that investors who globally. The exception to this is invested in IPOs based on Rs 10,000/month SIP in this Mutual Fund China where markets have 2014 earnings were in for would have given you Rs. 1.08 crore in witnessed a reasonable correc- a disappointment. 17 years! tion post some of the stringent measures announced by their Pg. 9 government and ex-China we Where to invest amid divergence of have seen a situation where market indices globally markets have been only Pg. 10 going up. Should you consider ICICI Prudential's Booster STP feature? As an asset manager, is it possible to predict what central ICICI Prudential Flexicap has a record banks will do? mop-up Pg. 11 Talking Point with Anand Shah Pg. 12 Money 9 Pg. 13 ICICI Prudential Midcap Fund Good pick up in past one year Pg. 14 ICICI Prudential Large & Midcap Fund Pg. 15 ICICI Prudential Short Term Fund Distributor Insights Pg. 16 Flexicap your mutual funds through choppy waters Pg. 17 Financial freedom through SIP & SWP Tarakki Corner Pg. 18 Shrey Mehta Fund Review Pg. 19 List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 20 List of ICICI Prudential Funds in Star Track Mutual Fund

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 2 TARAKKI TIMES, JULY-AUGUST 2021 Interview Today the number of loss-making resulted in many auto stock board has come down. From You recently completed a Rs. new age companies trading at companies shutting down in here, do you see the economy 10,000 crore new fund offer stretched valuations is very high September and all this is a recovering and therefore credit (NFO). A lot of investors who in the US compared with reflection of covid creating risk delivering good returns? came into that NFO and others dividend-paying, cash flow- supply shocks. probably have never seen a generating old economy orien- We believe credit is one of bear market. What do you say ted companies. The supply shock, along with the most interesting but often to them? accommodative monetary misunderstood categories. The other outlook that you policy, has led to a significant rise Investors during 2019-20 realized We launched a flexi-cap fund mentioned was a potential shift in prices. We will know whether the risk associated with credit because it has the ability to from growth to value at the inflation or supply shock is the risk category. Currently the YTM invest across market capita- start of 2021, a call which has only problem over the next six is low in credit risk funds from a lizations. i.e. large, mid and played out. Do you see this months to one year. historical perspective and given small. So, within the equity continuing? Or are growth and the market situation, investors space, flexi-cap has the potential value stocks more or less The relative valuations of large- can also consider categories to invest in any segment that equally attractive? versus mid- and small-cap such as arbitrage and equity appears reasonable. Investors companies, at the end of 2019, savings as YTMs have fallen. who came into the market after For value to deliver, at some marked a high point for large- 2011 have not seen a sustained point, interest rates have to go cap stocks. Since the However, we believe the risk in correction. up. If interest rates remain at zero pandemic, mid- and small-cap credit risk funds is lower now globally, we believe that growth have recovered quite a bit; is since many of the riskier names I personally have the benefit of may make a comeback. One of that significant? have managed to raise capital. witnessing major falls which the reasons for value to work of occurred in 1992, 1996 to 1998, late was on account of a phase Small- and mid-caps tend to In the current market, it seems and 2001-02. It is why we have where investors felt that liquidity deliver high returns over 10 or 20 IT stocks have led the rally and been constantly trying to popu- could be withdrawn sooner than years, but the risk associated have done spectacularly well. larize categories such as balan- later. with them is also much higher Will IT continue to have ced advantage or asset alloca- relative to large-caps. If an leadership? tion category, equity savings and So, if there is no normalization of investor is ready to stay invested multi asset which will help monetary policy anytime during for such long time frames, then Being a practitioner of the moderate negative experience 2021 or 2022, growth will be they should definitely consider contrarian and value investing during market correction in back in spotlight. Having said small- and mid-caps. style, IT sector currently appears equity. that, incipient inflation is fully valued to me. But my increasingly becoming visible However, the reality is that colleagues who practise growth Investors must remember that across many areas as can be investors often are guided by investing believe that IT is equity is not a risk-free asset seen through prices of commo- past returns and tend to ignore currently one of the most class, but the categories we have dities (energy, metals, agricul- the risks associated when favourable growth sectors and popularized are definitely more tural commodity, US homes, making investment decisions. can even uplift the Indian defensive than equity. etc), all of which have seen a On shorter time frames, large- economy, like in the year 2000. sharp spike. However, the Fed caps are better placed as those Besides reminding ourselves, believes this is due to transient companies are fundamentally According to them, IT is one of we keep telling prominent media reasons. robust, are cash rich, and can the sectors showing all the houses that it is wiser to withstand economic problems indicators of phenomenal popularize asset allocation and On the other hand, sustained rise much more comfortably than growth. The only challenge that defensive categories than aggre- in prices mean that interest rates small- and mid-caps. the sector is currently facing is ssive categories when markets have to go up, and that generally that of attrition, rather than are high. is supportive of value stocks. What is happening to credit risk anything business related. So, IT And you can see that today, for funds since April 2020 is a right now fits a growth portfolio example, there is a shortage of tendency to be cautious. Yield than a value portfolio. semiconductors, which has to maturity (YTM) across the Besides reminding ourselves, we keep telling prominent media houses that it is wiser to popularize asset allocation and defensive categories than aggressive categories when markets are high.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 3TARAKKI TIMES, JULY-AUGUST 2021 Be dynamic Investing in a bullish equity market needs some fine balancing and proper asset allocation Telegraph | July 12, 2021 Sankaran Naren monetary policies. So, the risk of trend is likely to continue in the stocks through mutual fund ED & CIO a global business cycle con- near term. categories such as the flexicap. ICICI Prudential Mutual Fund traction exists but the Indian business cycle is in its initial More caution than last year Here, the fund manager has the Stock markets globally and in stages. flexibility to invest across large, India have been supported by Investing at an all-time high mid and small cap names. This liquidity unleashed by the global After the 2018 market fall, the requires much more caution than approach will help mitigate the central banks. As a result, Indian market rally was concentrated what was required while risks associated with investing in and global equity markets are and led by growth stocks. investing in March 2020, a time a narrow set of stocks. For those steadily marching to new However, after October 2020, we when the market was steadily opting to invest in an equity highs and are trading at steep have seen a broader based rally correcting. oriented scheme can consider valuations. and going forward we expect investing from a long-term this rally to continue as the When considering the previous perspective through the SIP Liquidity support coupled with economy further opens up. all-time highs of the market seen route. near-zero cost of capital in most during 1999, 2007 and 2017, the parts of the world have played a From a macro perspective, common feature is that investors Risk factors to watch out for big role in ensuring that equity inflation should not be seen as a fail to practice asset allocation, markets remain resilient. major risk. We believe going which means investing across The US Fed rate hike is likely to forward inflation is likely to be debt, equity and other asset be the biggest risks for the The Indian business cycle is stable. Historically, it has been classes. domestic market over the next attractive given that corporate observed that when inflation is at two years. While Fed chairman houses have deleveraged, credit manageable levels, it gives a An investor today can opt for Jerome Powell lowered rate hike growth is very low, the capex boost to economic activity. balanced advantage or dyna- concerns, he acknowledged that cycle is yet to revive and the During such times, businesses mically managed asset alloca- the Fed was considering profit-to-GDP ratio too is low. are able to sell goods at a faster tion schemes to achieve this tapering its bond-buying $120 pace and the recent uptick in real objective. billion a month programme, Economic recovery seems to estate sales is a case in point. which includes $80 billion in have been delayed because of In such a fund, the corpus is treasury securities and $40 the second wave of the pan- In terms of sectors, we are deployed across equity and debt billion in mortgage-backed debt. demic, but we believe the optimistic about select private asset classes based on their recovery is well on track given sector banks, power, telecom, relative attractiveness. While This development has the the fairly resilient domestic metals and software. The IT equity provides the growth potential to derail the global and economic indicators, favourable sector has been one of the element, the debt allocation US markets. As we live in a world macro environment, govern- biggest beneficiaries of the work cushions the impact of high which is much more intertwined ment policies and supportive RBI from home culture during the volatility in equities. Given the than earlier, a global develop- measures. pandemic. As a result, the sector active management of asset ment of this magnitude is sure to has gone through substantial allocation, such a scheme can be impact domestic market as well. On the other hand, US corporate valuation re-rating. a part of one’s core portfolio. Needless to say, this could keep profit-to-GDP ratio is high and volatility at elevated levels as and the country has pursued Commodity companies are The other mistake that investors when it plays out. Another extremely aggressive fiscal and another pocket we are posi- make is to go for stocks where source of uncertainty for the tive about as this space has sizeable gains are being made. In market is the evolving pandemic witnessed significant under- 1999, the investor favourite situation in the light of new Delta investment over the past several theme was TMT - technology, variant. years. Supply may not be able to media and telecom stocks, while catch up with demand, thus in 2007, it was infrastructure and The writer is ED and CIO, ICICI driving metal prices higher. This in 2017, it was smallcap. This Prudential AMC thesis on the metal played out challenge can be addressed by very well in FY2020-21 and this investing across a diverse set of Investing at an all-time high requires much more caution than what was required while investing in March 2020, a time when the market was steadily correcting.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 4 TARAKKI TIMES, JULY-AUGUST 2021 Interview 30 years of liberalization: S Naren on wading through irrational markets and foreign investor frenzy of the 90s Moneycontrol | July 25, 2021 The ED & CIO of ICICI Mutual Fund recalls that most of the IPOs back then were just Rs 3 crore in size. Sankaran Naren, ED & CIO, ICICI Satyam Computers. “I didn’t Stock markets of yore Sankaran Naren Prudential Mutual Fund (MF), has underwrite Satyam Computers ED & CIO been with the house for 17 years. because they had an associate As every stock transfer involved Naren was in the investment company that didn’t do well,” he paperwork back then; forgery, ICICI Prudential Mutual Fund banking division of HSBC in the says. mismatch of signatures on the early 90s, when the economic transfer deeds, or other irregu- diaries,” Naren says. reforms were initiated. He later The stock of Satyam Computers larities would cause bad de- moved to the broking business in did very well till 2008. In 2008, liveries. The issuer also had the Similarities in investment 1994. Around this time, the stock the global financial crisis hit right to refuse the transfer of a behaviour markets opened up to foreign stock markets and the Satyam security. institutional investors. After 10 scam came to the fore in 2009. Naren laments that people still years in broking, he realised his “Those were the days of bad make the same mistakes when dream of becoming an equity Foreign investor frenzy of the deliveries. There used to be a investing. “In 2007, investors fund manager at ICICI MF. He 1990s centralised system where all bought infrastructure-themed talks about his experiences from those bad deliveries used to get stocks despite expensive the early 90s and how the stock In 1994, Naren left investment settled. The bad deliveries used valuations. In 2017, when small- markets have changed over the banking and got into broking. He to take 6-9 months to get caps were at expensive valua- years. remembers this as the beginning settled,” he says. tions, investors bought those,” of one of the biggest bull he points out. A small IPO market markets in India’s stock market Most of the mutual funds in history. “Almost every penny 1998-99 were close-ended sche- He says while information is Naren recalls that most of the stock went up, driven by foreign mes, Naren recalls. Schemes easily available today through IPOs back then were just Rs 3 institutional investors, who had such as CanBonus and Morgan the internet, greed and fear-led crore of size, which was also entered India for the first time. It Stanley Growth Fund would get behaviour of investors remains minimum issue size. was the most irrational boom in listed on the stock exchanges, the same. stocks market history,” Naren and were available at more than “Today, such small IPOs can’t be says. 40 percent discount to their net According to Naren, as trading imagined, as we have IPOs in the asset values and made for quite has become easy, many inves- range of Rs 9,000 - Rs 10,000 The Harshad Mehta bubble burst attractive investments. tors have stopped being long- crore. Those days, IPOs were in 1992, but Naren says by 1994 term in their approach. “This getting valued at price-to- people had forgotten about it. But analysing companies was gives genuine long-term inves- earnings of 7-8 times. Now, we “Big foreign brokerages came in tough. He says that back in the tors opportunities to create have IPOs that can’t be valued and set up their research opera- 90s, he used to source com- wealth, compared to short-term using the P/E ratio as they are yet tions in India. So, the 1994-95 pany’s annual reports from scrap investors,” he says. to make any earnings. Around 95 market boom was led by foreign paper dealers. “Today, annual percent of the IPOs that hit the investments,” he says. reports come immediately,” he “Global central banks today are market between 1990 and 1994, says. Reporting of profit and loss playing an important role in failed. Those companies don’t Only when that boom burst in numbers was also as per olden keeping bear markets at bay. exist anymore,” he says. 1995 amid the Asian financial style. “There was no requirement However, it is quite likely that crisis, did domestic investors for companies to give proper some central bank’s action could One of the companies that Naren realise that even foreigners can details for every subsidiary. We cause the next bear market, in didn’t underwrite back then was get it wrong, Naren says. had to analyse each of the subsi- the future. Easy availability of information accentuates greed Trading has become easy, many investors and fear behaviour of investors, have stopped being long-term in their which gives more scope for approach. This gives genuine long-term strategies such as asset alloca- investors opportunities to create wealth, tion that can gain from these compared to short-term investors. biases,” he adds. So, investing today requires much more discipline. “The possibility of disruptions is so much more today than in the past,” he says.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 5TARAKKI TIMES, JULY-AUGUST 2021 Metal story not over, look for opportunities in manufacturing sector Economic Times | July 16, 2021 Anand Shah, the head of PMS at why we look large cap focussed. and we continue to watch this Anand Shah ICICI Prudential AMC, is a firm Otherwise, we have been space. This sector is coming out Head - PMS & AIF Investments believer in the India story and maintaining approximately 65% of a significant long bear market. expects the newfound zeal in the large cap and 35% midcap and Structurally, if companies con- ICICI Prudential Mutual Fund manufacturing sector to gene- small cap as our normal tinue to grow in the next decade, rate many opportunities to make coverage. This is more of a then this sector has more legs. The challenge remains how to money. Though he doesn’t see bottom up market and I see value a company. Traditional the market surging rapidly from significant opportunities in Inflation is one issue that is techniques like a discounted here, stocks from real estate, textiles, chemicals, banking and going to be key in a few cash flow methodology where telecom, chemical and textile financial services. months. Do you see a rate hike you project their cash flows or PE sectors are on his radar. Edited and if yes, what would be your multiple or a price to book are not excerpts: Telecom has lagged in this strategy to deal with it? an option. So that is a challenge market rally. You own Bharti for investors. The second cha- Currently the market is trading Airtel in all your funds. Do you Do we see a rate hike both in the llenge is that given that it is an in a range. Do you expect a see that the market is missing US and in India, over 12 months emerging sector, there is no correction or a breakout on something that you can see? to 18 months? I think yes. We are reason to believe that you will not upside? better off believing that two have new players coming in. To I do not think the market is things are going to happen -- the that extent, those unknowns There is no reason for the market missing anything. The benefits of rate hike and that would coincide have to be dealt with. to break out. We believe the consolidations in the sector have with the negative impact of market can continue to inch up not come through. Ideally, in any Covid going away. Internally, we are evaluating all on the back of every quarter’s sector, if such a consolidation the businesses in the form of earnings growth and more covid happens, the outcome would be Inflation will come only when the how they can deal with com- vaccinations. As a fund house, higher pricing power but we have negative impact of the pandemic petition; if they have an enduring we remain constructive on the not seen that yet. is behind us, and growth comes mode that is sustainable com- market and are looking for back. From an equity pers- petitive advantage, so that even opportunities where the valua- We are down to three players pective, the first leg of inflation, if new players with deep pockets tions are reasonable and ear- and I do not see any reason why which is on the back of a growth come into your industry, you can nings growth is good. our mobile bills should remain as and recovery, will boost earnings survive. Those are the questions low as they are. But we believe significantly. At the same time, if we will have to answer before we Many money managers are that such a large consolidation you are extremely leveraged, the can come to any conclusion. sitting on cash. Are you one of will eventually lead to higher rising interest rate is not good for them? pricing power. Equity investment you. Cement and real estate has is a long-term game and in this gained a lot of traction in the Not so much of cash but we are country we have all the ingre- We are looking at which of the market. Are you underweight cognisant of the pockets of the dients for telecom companies to companies we hold will get or overweight? market where the valuations are do well in future. negatively impacted by higher quite steep and we are avoiding interest rates and which will be In the last five years, prices of very extensive stocks. There are Is the metal story over and is it positively impacted by higher residential properties have gone industries where there is a good time to sell? growth and then saying I want to nowhere. But in those five to six tailwind of earnings, and at the be in those businesses that are years, wages and the purchasing same time valuations are fairly You have to see where the higher going to benefit from the power of the individual house- reasonable. profitability is coming from, and economic recovery and vice holds have gone up and so the answer is China’s focus to versa. affordability has increased. So rather than taking a cash call, decarbonise. That country is the we are more overweight on largest producer of steel. Now Zomato is a loss-making Secondly, with rapid fall in the those businesses in manu- that it has gone on record saying company. How would a fund interest rates and home loan facturing, banking and financial it wants to reduce overall pro- manager value such a rates, EMIs have come down. services where the valuations duction, China will be exporting company? For long-term Now this combination with the are reasonable and earnings much less. investors like you, are such need for a larger house given that support is significant. companies worth investing in? the work-from-home environ- Moreover, unlike Chinese firms, ment is there to some extent for Mid and smallcaps are in a Indian steel companies have These companies have created a multiple quarters to come, are dream run but most of your access to a far cheaper iron ore. completely new service-- the emerging needs of house- funds are large cap focussed. Is Multiple factors are coming delivery of food at home. Not that holds. We are seeing signs of it right to be focussed on large together and that makes one it did not exist, but it was unique real estate sales picking up. caps right now? believe that steel companies not for a particular restaurant but only have good profitability today now this has been democ- Contd. on page 11 I do not think we have a pre- but can also more or less ratised. Today I am not restricted ference for large cap over mid- maintain it. to one or two restaurants. The cap or small cap. In our contra second big positive is there are a portfolio also, there are a couple The export numbers for steel fairly limited number of players of stocks which became large from India for the last three years participating in this industry. cap from midcaps and that is has been consistently going up

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 6 TARAKKI TIMES, JULY-AUGUST 2021 Interview Flexicap funds help balance risks, returns Mint | July 13, 2021 Notwithstanding the fierce by growth stocks. However, post stability and liquidity. Usually, Rajat Chandak second wave of covid-19, Indian October 2020, we have seen a these investments are driven by Senior Fund Manager equity markets have continued broader rally and going forward it changes in global and domestic ICICI Prudential Mutual Fund their rally upward. Benchmark may continue as the economy macroeconomic indicators such indices such as the BSE Sensex opens up further. In the interim, as inflation and interest rates, of a third wave looming on the and Nifty have doubled since the markets are likely to be choppy business cycle changes, valua- sidelines are added risks to nationwide lockdown imposed and volatility poses a risk to tions and future earnings po- economies returning to nor- at the end of March 2020. Stock investor returns. tential of companies. Hence, it malcy. While India is on the path markets globally, too, have been is a top-down investment to economic recovery, inflation on a strong footing, trading at Therefore, it is time for investors approach. and an increase in interest rates high valuations, supported by to revisit their portfolios and over the medium term could be liquidity unleashed by global broad-base allocations, even Small- and mid-caps, however, dampeners. Against this back- central banks. Besides liquidity within equity, to minimize risk. give the opportunity to invest in drop, large-caps limit downsides support, the fact that the cost of Flexicap mutual fund schemes unexplored ideas. Therefore, and provide liquidity to the capital is close to zero in most offer this opportunity on a platter. they are stock-specific invest- portfolio. Flexibility in allocation parts of the world has played a The surge in investor funds into ments, often sector-agnostic and makes it possible to switch, if big role in ensuring that equity this category has taken the the result of a bottom-up and when needed, to mid- and markets remain resilient. overall assets under manage- approach in investing. They are small-caps, which are better ment to around Rs. 1.6 trillion as deep-dive value bets and have positioned to capture potential The Indian business cycle of end-May. the potential to turn into multi- upside from the expected remains attractive given that baggers, when the Street economic recovery. corporates have deleveraged, Flexicap funds are dynamic with recognizes their worth. In a credit growth is very low, capex no prescribed formula by the growth phase, they can lead to Besides, the diversified portfolio cycle is yet to revive and the market regulator on asset allo- capital appreciation. ensures balance between risk profit-to-GDP ratio, too, is low. cation across market capitali- and return. This is why flexicap Economic recovery seems to zation categories. So, in a Straddling these realms based funds are capable of delivering have been delayed by the flexicap fund, it is the fund on the state of the economy and steady returns across market second wave; but recovery is manager’s discretion to plan the markets is possible in flexicap cycles. well on track, given the fairly portfolio allocation across funds. The idea is to build a resilient domestic economic industry sectors and categories balanced portfolio compared Rajat Chandak is senior fund indicators, favourable macro such as large-, mid- and small- with large-, mid-, small- and or manager at ICICI Prudential environment, government poli- cap. The onus is on the fund even multi-cap funds, which are AMC. cies and supportive measures manager to adapt faster to straitjacketed. taken by the Reserve Bank of changing business cycles, take India. advantage of sector rotation in The right time to invest in the markets, absorb market flexicap funds: It is very likely However, US corporate-profit-to- volatility and minimize downside that markets could remain GDP ratio is high and the country risks. volatile in the near term owing to has pursued an extremely various uncertainties prevailing aggressive fiscal and monetary Reasons to buy flexicap funds: across global economies. The policy. So, the risk of a global Usually, flexicap funds are liked US Federal Reserve’s decision business cycle contraction for their diversified approach, on tapering stimulus could exists, but the Indian business with a neat blend of stock- impact investor flows in various cycle is in its initial stages. Post picking strategies. Large-cap asset classes, especially into the fall of the market in 2018, its stocks are driven by earnings emerging markets. Besides, the rally was concentrated and led growth and have the benefits of pace of vaccination and the fear Metal story not over, look for opportunities in manufacturing sector Contd. from page 10 Very clearly, cement benefits not resurgence of manufacturing. increasing for them. So, over the pens and that creates a lot of only from residential uptick but Manufacturing sector, in general, last three years, there has been a jobs. We are very clearly seeing also from infrastructure spen- has suffered from extra capacity shift of manufacturing from the resurgence of the manu- ding that has been happening that existed in China and their China towards Vietnam, facturing sector after remaining and there is more stress than ability to sell it cheap. Because of Cambodia, Southeast Asia, on the sidelines for more than a ever before. That is another that, the profitability was sub- Bangladesh and others. decade. We will see a lot of sector we are constructive on. dued in these segments of private sector capex in textiles, We are overweight on both market for a very long period of We did not benefit much from metals, mining, chemicals and residential real estate and time. that but-Make in India, PLI, lower engineering goods. We will see a cement. tax rates for the new capex, further expansion in cement What has changed in the last few lower corporate tax rate and now capacities as well. Their valua- Anything you like to add… years is China’s need for employ- low interest rates along with tions are reasonable, they are not ment in the manufacturing dedicated freight corridors very expensive and the growth is I want to highlight one very sector is reducing due to rising ensures that there is a significant significantly picking up there. important aspect which is not per capita income. The cost of government focus on making really well covered and that is the manpower in manufacturing is sure that manufacturing hap-

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 7TARAKKI TIMES, JULY-AUGUST 2021 Flexicap Fund is an interesting proposition for long-term investors Financial Express | July 11, 2021 Rajat Chandak Do you see this trend we believe flexicap is an tunities for reasonable risk- Senior Fund Manager continuing? interesting proposition for a long- adjusted return from a medium ICICI Prudential Mutual Fund term investor. to long-term timeframe. The Indian markets in line with In an exclusive interview with FE the global markets have been How is IPRU Flexicap different What are some of the key risks Online, Rajat Chandak of ICICI supported by liquidity unleashed from the other funds in this that can derail the current rally? Prudential AMC shares his views by the global central banks. This category? on the stock markets and their coupled with nearly zero cost of Rising inflation is one of the newly-launched Flexicap Fund. capital in most parts of the world The differentiation factor in case risk factors to be mindful of. has played a big role in ensuring of the ICICI Prudential Flexicap Historically, while manageable Among the various equity mutual that equity markets remain Fund is the model-based inflation tends to be a positive for fund categories, flexicap is the resilient. From a business cycle approach when it comes to equities (supports nominal most flexible which allows the perspective, the Indian markets deciding on allocation to various growth in GDP and earnings), it corpus to be deployed across remain attractive as corporates market capitalisations. The could also lead to higher interest large, mid and small caps based have deleveraged, capex cycle is scheme will be relying on an in- rates which could derail the pace on the relative attractiveness of yet to revive, and both credit house market-cap model and of economic recovery. Currently, these individual pockets. The growth and profit to GDP ratio is other economic indicators. This most of the global central banks large cap exposure provides low. So, compared to global model will be relied upon for seem to be taking higher inflation defence during turbulence business cycle, the risk of portfolio re-balancing as well. levels in their stride. The other times, while mid and small caps business cycle contraction in significant risk is how the pan- help in generating better returns India is very low. However, This model comprises of para- demic is likely to pan out. Given a over the long term. The balance equity valuation is no longer meters such as market cap significant portion of the popu- between the risk and reward inexpensive as it was in March weight as a percentage of total lation is likely to be vaccinated, makes it a very reasonable 2020. market cap, valuation differential the disruption potential appears investment avenue for equity of midcap and small cap over to be muted. investing, says Rajat Chandak, ICICI Prudential has launched large cap and Relative Strength Senior Fund Manager, ICICI the ICICI Prudential Flexicap Index (RSI). RSI gauges whether Which sectors are you over and Prudential AMC. Fund. Why do you think this the particular market cap is in underweight on? category is relevant in the overbought or oversold zone. In an exclusive interview with current market environment? The fund manager would further We believe there is potential Sanjeev Sinha of FE Online, look into the business cycle or across various sectors, on a Chandak shares his views on the Among the various equity mutual macro-economic indicators to bottom up basis, to deliver good stock markets and their newly- fund categories, flexicap is the fine-tune the model allocation. earnings growth. We see launched Flexicap Fund. most flexible which allows the opportunities particularly in large Excerpts: corpus to be deployed across If the market continues to private banking space, auto- large, mid and small caps based remain elevated, what would motive industry, retail, construc- The Indian stock markets have on the relative attractiveness of be the portfolio like for this tion and telecom. been largely resilient thus far. these individual pockets. The fund? large cap exposure provides When it comes to sectors which defence during turbulence While the market valuation is are expensive, FMCG (consumer times, while mid and small caps rich, the outlook on earnings staples) is one such sector. help in generating better returns growth remains positive. The Technology is another pocket over the long term. The balance deployment phase will be which has undergone a re-rating between the risk and reward gradual in nature and more over the past 15 months. makes it a very reasonable importantly will be done judi- investment avenue for equity ciously by selecting sectors and investing. Given this framework, stocks where we see oppor- Among the various equity mutual fund categories, flexicap is the most flexible which allows the corpus to be deployed across large, mid and small caps based on the relative attractiveness of these individual pockets.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 8 TARAKKI TIMES, JULY-AUGUST 2021 Fund Review ICICI Prudential Value Discovery Fund AUM reaches Rs. 21,195 crore; delivers 20% CAGR in 17 years Economic Times | August 28, 2021 ICICI Prudential Mutual Fund on (CAGR) of 20.03 per cent. the case even during 1988-89 the time central banks tighten Friday said its value discovery and 2007-2008. In value style, we monetary policy.\" fund has witnessed significant In the same time-frame, the Nifty have seen that investments investor interest over the years 50 TRI (additional benchmark) made in 1999 did very well With value investing being and has emerged as the largest has delivered a CAGR of 15.91 because at that point in time suited for long-term investing, scheme in the value category per cent and the corresponding markets were largely focused on systematic investment plan (SIP) with a total asset base of Rs worth of investment would be Rs technology stocks. Similar was emerges as the ideal investment 21,195 crore as of July 2021. 12.24 lakh. the case in 2007 when infra- pathway. In terms of SIP per- Moreover, the scheme - ICICI structure was in focus,\" he formance, a monthly investment Prudential Value Discovery Fund - The scheme follows a value added. of Rs 10,000 through the route - which completed 17 years in investment style by investing in since the inception, which would existence accounted for nearly diversified portfolio of stocks According to him, value investing amount to a total investment of 30 per cent of the total asset that have attractive valuations at a time when market are Rs 20.4 lakh, would have grown under management (AUM) in the but are quoting at a discount to elevated tends to do well as to Rs 1.08 crore as of July 31, value category, the fund house their intrinsic value. value focuses on investing in 2021 i.e. a CAGR of 17.5 per cent. said in a statement. sectors which are out of favour S Naren, ED and CIO at ICICI but offer long-term potential. A similar investment in Nifty 50 The fund house said that if an Prudential AMC, said global would have yielded a CAGR of investor had invested a lumpsum experience has always been that \"Even in current times, there are 13.22 per cent for the same of Rs 1 lakh at the time of value as a strategy will not work select sectors where valuations period. inception (August 16, 2004), as all the time but tends to deliver are attractive and many of such of July 31, 2021, that investment sizeable returns in the long run. pockets are yet to deliver returns would have been worth Rs 22.13 since 2008. Most of the sectors lakh, translating into a com- \"Until September 2020, value which are cyclical in nature, we pound annual growth rate was out of favour which was also believe, present good value till Rs 10,000/month SIP in this Mutual Fund would have given you Rs. 1.08 crore in 17 years! Financial Express | August 28, 2021 ICICI Prudential Value Discovery Fund has completed 17 years in existence. ICICI Prudential Value Discovery been worth Rs. 22.13 lakh i.e. a 13.22% for the same period. The value as a strategy will not work Fund has completed 17 years in CAGR of 20.03%. In the same returns are calculated by XIRR all the time but tends to deliver existence. The scheme witne- time frame, the Nifty 50 TRI approach assuming investment sizeable returns in the long run. ssed significant investor interest (Additional benchmark) delivered of Rs 10000 on the 1st working Until September 2020, value was over the years, emerging as one a CAGR of 15.91% and the day of every month. XIRR helps out of favour which was also the of the largest schemes in the corresponding worth of invest- in calculating return on invest- case even during 1988-89 and value category, with a total asset ment would be Rs. 12.24 lakhs. ments given an initial and final 2007-2008. under management (AUM) of Rs (As the scheme was launched value and a series of cash inflows 21,195 crore (as of 31st July, before the launch of the bench- and outflows with the correct “In value style, we have seen that 2021). mark index, benchmark index allowance for the time impact of investments made in 1999 did figures since inception or the transactions. very well because at that point This fund follows a value invest- the required period are not in time markets were largely ment style by investing in a available). Commenting on the 17 years focused on technology stocks. diversified portfolio of stocks completion, Nimesh Shah, MD & Similar was the case in 2007 that have attractive valuations In terms of SIP performance, a CEO of ICICI Prudential AMC said when infrastructure was in but are quoting at a discount to monthly investment of Rs 10,000 in a statement, “We are happy focus. Hence, we believe that their intrinsic value. via SIP since the inception, (total that through our product offering value investing at a time when investment of Rs 20.4 lakh), we have been able to contribute market are elevated tends to do The scheme has returned a would have grown to Rs 1.08 to favourable investment well as value focuses on CAGR of little over 20 percent in crore as of July 31, 2021 i.e. a outcomes of wealth creation for investing in sectors which are 17 years. If an investor had CAGR of 17.5%, said ICICI our investors over a long term.” out of favour but offer long term invested a lumpsum of Rs. 1 lakh Prudential in the statement. potential,” said Naren. at the time of inception (August S Naren, ED & CIO, ICICI 16, 2004), as of July 31, 2021, A similar investment in Nifty 50 Prudential AMC said the global that investment would have would have yielded a CAGR of experience has always been that

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 9TARAKKI TIMES, JULY-AUGUST 2021 Where to invest amid divergence of market indices The Indian Express - Explained | August 20, 2021 Where to invest amid divergence this month. Through its stimulus, How does an STP work? or hybrid funds. One can do a of market indices it is currently buying bonds worth weekly STP where Rs 1 lakh can $120 billion each month. An STP allows an investor to give be put in a debt fund and it can The Sensex and the Nifty are consent to a mutual fund to get invested into equity scheme trading at all-time highs, and So, while investors can continue periodically transfer a certain over 50 weekly instalments. It there is still enthusiasm among with their existing investments, amount from one scheme to provides a good rupee avera- retail investors about partici- they would be wise to not put another at fixed intervals. This ging,” said Bhatia. pating in equity markets. But the lump-sum investments and can facility allows deployment of free ride may be over, and instead opt for arrangements funds in a staggered manner What are the various types of everything that one invests may such as a systematic transfer and helps the investor take STPs? not rise. In fact, August has seen plan (STP). advantage of a correction in the a clear divergence in per- market. Apart from the plain vanilla STPs, formance across various indices. Where should you invest? mutual fund houses offer While the benchmark Sensex For example: If an investor innovative variants such as Flex has risen 5.8% in August to trade While the market rally is driven wishes to deploy Rs 10 lakh into STP, formula-based STP and at over 55,500, the mid-cap index more by liquidity, and it is getting equities, instead of investing it all booster STP. Under Flex STP, an has risen just 0.1% and the small more and more expensive with together at one go, he/she can investor can park money in a cap index is down 2%. Investors every rise, an unexpected hiccup invest a lump-sum of Rs 10 lakh debt fund which is then trans- moving from mid- and small- can lead to a correction and may in a debt mutual fund and ferred to an equity fund based on caps to blue chip companies first impact the companies in the thereafter set up an STP of a the P/E (Price to Earnings) band amid high valuations is an mid- and small-caps segment. certain amount in an equity fund. of the Nifty 50 Index. In case of indication of caution in the formula-based STP, as the name market, and is a signal for retail Experts say that in this un- The investor needs to select a suggests, the STP amount is investors to follow a proper comfortable zone in terms of fund from which the transfer decided based on a formula. strategy. As investors weigh their valuation and the fear of losing should take place and a fund to There are several fund houses options between waiting for a out on a rally, it is time to get into which it is taking place. Transfers that offer either of these variants correction and missing out on a large caps funds or companies. can be made weekly, monthly or of STPs. possible rally, experts say they While they provide better pro- quarterly depending upon the would do well to follow a tection in times of correction, STP chosen and the options Booster STP is a newer option, strategy of a systematic transfer investors can also look at com- available with the asset manage- recently introduced by ICICI plan instead of a lump-sum panies that have significant ment company. Prudential Mutual Fund. This investment, and go for large-cap businesses focused outside allows an investor to invest funds or funds in the diversified India. In a volatile situation while an variable sums into equity funds or hybrid category. STP provides protection to the based on market valuation. While “One must avoid small-caps and part of the investment that the investor is required to pro- What should an investor even mid-caps at this time. remains parked in a debt fund, it vide a base instalment amount consider? Investors should either go for also helps investors average out (amount intended to be trans- large-caps, flexi-caps or hybrid the cost of investment. ferred) and the frequency of Both fund managers and invest- funds and the better way to do is transfer - which can be weekly, ment advisers see the current through STPs instead of inves- “A conservative investor can go monthly or quarterly - booster market situation as a tricky one: ting lump-sum amount,” said for a 12-24-month STP where the STP gives the flexibility to the While there is concern over Surya Bhatia, founder, AM fund can be diverted from debt to fund house to vary the instal- valuation, there is also a possi- Unicorm Professional. equity funds - large-cap, flexi-cap ment amount from 0.1x to 5x the bility of a further rise in markets base amount, and that is based in the wake of the ongoing high on the fund house’s equity liquidity and hopes of an uptick in valuation index. This means that economic activity. So, while when market valuations are very valuations may not look very expensive, the STP instalment attractive, there is no major amount would go down to 0.1x, foreseeable reason for a correc- and when the valuations are tion either. Besides, corporate attractive, they can go up to 5x. earnings too have been So on a base instalment of Rs supportive. While risks exist in 10,000, the investment amount the form of the US Federal can vary between Rs 1,000 and Reserve announcing a tapering- Rs 50,000. off of its monetary stimulus programme, along with the So, compared to a traditional STP, probability of a third wave of the in a booster STP the instalment pandemic, market experts say amount and the periodicity of that most of these are known transfer is variable and is decided factors and largely factored into by the fund house in line with the price. investment opportunity it sees. The US Fed is set to meet for its annual August policy retreat later

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 10 TARAKKI TIMES, JULY-AUGUST 2021 Fund Review Should you consider ICICI Prudential's Booster STP feature? Economic Times | August 10, 2021 ICICI Prudential Mutual Fund has come up with an interesting concept of STPs. This new idea is called the booster Systematic Transfer Plan (Booster STP). \"ICICI Prudential Mutual Fund has mutual fund advisors also use ICICI Prudential AMC. benefit will be that at lower come up with an interesting this asset allocation model to market valuations, the investor concept of STPs. This new idea is increase and decrease the Mutual fund experts believe that will effectively invest more and called the booster Systematic investment amount as per the investors who want to use timing vice versa. This will enhance Transfer Plan (Booster STP). market movement. Through this and asset allocation to earn rupee cost averaging,” says Booster STP is an enhanced form booster STP feature, a very small better returns can consider this Joydeep Sen, author and cor- of Systematic Transfer Plans amount of base installment is option. “This is a good idea. porate trainer. wherein unit holders can opt to invested when equity valuation is Earlier, in the MF industry, we transfer some amount of their considered expensive. On the had the concept of trigger exit Investors who believe in allo- investment from a debt scheme other hand, when the valuation is i.e. on the market reaching a cation to equity and the India to a designated target equity considered cheap, the invest- particular level, a certain per- growth story, but are in two scheme at defined intervals in ment will be higher. centage of the portfolio will be minds about the quantum or the market. The unit holder is exited - the concept of profit timing of allocation can take up required to provide a base “Booster STP leverages rupee booking. As of today, there are this option. However, if you don’t installment amount that is inten- cost averaging and value avera- certain advisers that have the want to rely on the in-house ded to be transferred to the ging by staggering investment concept of model based (market models for increasing and target scheme. through dynamic installment and valuation based) allocation to decreasing STPs or if you have a dynamic tenure. Market val- equity and debt funds. The plan and strategy in place and are The fund house has said that the uation based on which the concept of booster STP will taking help from a seasoned booster STP can vary installment installment amount is decided is modulate the quantum of STP financial planner, you can totally amount from 0.1x to 5x of base based on Equity Valuation from the debt / money market skip the new STP.\" installment amount based on the Index,” said Chintan Haria, Head- fund to the target equity fund, equity valuation Index. Many Product Development & Strategy, based on market valuations. The Booster STP is an enhanced form of Systematic Transfer Plans wherein unit holders can opt to transfer some amount of their investment from a debt scheme to a designated target equity scheme at defined intervals in the market. ICICI Prudential Flexicap has a record mop-up The Economic Times | July 14, 2021 The new fund offer (NFO) of ICICI ting is positive. The fund house ABSL Multicap Fund that one year. Many distributors and Prudential Flexicap, which ended has a good track record of garnered Rs. 2,112 crore in May banks are known to churn on July 12, has mopped up Rs. managing funds across the 2021 and Axis Special Situations investors' money out of old 9,700 crore, making this the spectrum,\" says Kaustubh Fund, which raised Rs. 2,169 mutual fund schemes to allocate highest mobilisation by an B e l a p u r k a r, d i r e c t o r ( f u n d crore in December 2020. to a new fund offer. \"Top Indian actively managed 'open-ended research), Morningstar India. private sector banks and their equity fund. The fund has the Private sector banks have been wealth management teams have flexibility to invest in a mix of Earlier in January, ICICI very aggressive in selling equity sold this NFO to their investor large, mid and small cap stocks Prudential Business Cycle Fund mutual funds to their rich clients, base as they like the track record without any market cap bias. raised Rs. 4,198 crore. Among say distributors, given the high of the fund house,\" says a CEO at other NFOs that drew big returns investors earned in a domestic fund house. \"Sentiment towards equity inves- amount of funds recently were equity mutual funds over the last

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 11TARAKKI TIMES, JULY-AUGUST 2021 IS TIME RIPE TO INVEST IN TRADITIONAL MANUFACTURING AND INFRASTRUCTURE THEME GIVEN THE GOVERNMENT'S PLI PUSH? INVESTING IN MANUFACTURING • TAILWINDS FOR INDIA'S MANUFACTURING SECTOR • MANUFACTURING: THE VALUATION PICTURE • KEEP AN EYE ON METALS, TEXTILES, ETC.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 12 TARAKKI TIMES, JULY-AUGUST 2021 Interview How to use Systematic Transfer Plan in your Mutual Fund investments?

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 13TARAKKI TIMES, JULY-AUGUST 2021 ICICI Prudential Midcap Fund Good pick up in past one year Economic Times | August 09, 2021 ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision. HOW HAS THE FUND PERFORMED? BASIC Top 5 sectors in portfolio (%) FACTS Point To Point Return (%) Financials 27.40 DATE OF LAUNCH Healthcare 11.38 FUND BENCHMARK CATEGORY AVERAGE Services 11.34 23 OCTOBER 2004 Automobile 8.50 82.76 85.36 77.24 Technology 7.56 CATEGORY 16.44 17.31 17.11 16.09 18.29 16.01 The fund has sizeable presence in financials EQUITY I TYPE with large positions in healthcare and services. MID CAP 1-YEAR 3-YEAR 5-YEAR Top 5 stocks in portfolio (%) AUM* The fund has fared well relative to peers over AS ON 3 AUGUST2021 Max Financial 5.82 `2,839 crore Services I BENCHMARK the past year but struggled over 3 years. NIFTY MIDCAP 150 Rolling Return (%) TOTAL RETURN INDEX The Indian 3.69 Hotels Company FUND BENCHMARK Metropolis Healthcare 3.54 1-YEAR 17.30 WHAT IT The Federal 3.51 16.02 COSTS Bank 3.17 Persistent Systems 3-YEAR 14.91 NAV** The fund portfolio is fairly diversified with 14.14 GROWTH OPTION I `155.64 modest positions in top bets. IDCW 13.49 Recent portfolio changes `30.95 5-YEAR New Entrants MINIMUM INVESTMENT 16.20 EPL, ICICI Bank, HCL Technologies, Indian Bank, `5,000 JK Lakshmi Cement, Kei Industries, Krishna Its long term track record indicates struggles AS ON 3 AUGUST2021 Institute of Medical Sciences, Steel Authority MINIMUM SIP AMOUNT of India. I `100 Complete Exits to outperform over longer times frames. EXPENSE RATIO*** (%) Craftsman Automation, Natco Pharma, PI Note: Different benchmark (S&P BSE 150 Midcap TRI) is used due to non availability of Industries, SRF, Atul, Chalet Hotels, ICICI Bank, stated benchmark data. The above figures denote daily average rolling return over last 2.29 Orient Electric, UTI AMC. 10 years for different time frames. EXIT LOAD Increasing allocation WHERE DOES THE FUND INVEST? 1% for redemption Zee Entertainment Enterprises, Phoenix Mills, Portfolio asset Fund within 365 days Voltas, Alkem Laboratories, EPL, Tata allocation style box Communications, TVS Motor Company, INOX *AS ON 30 JUNE 2021 Leisure, Zydus Wellness, Cummins India. Equity 96.04% Growth Blend Value **AS ON 3 AUGUST 2021 Large-cap Small Medium Large ***AS ON 30 JUNE 2021 How risky is it? 6.32% INVESTMENT STYLE Mid-cap CAPITALISATION FUND Fund Category Index 79.95% MANAGERS 24.47 26.76 Small-cap Standard Deviation 26.15 13.73% PRAKASH GAURAV GOEL Debt & Cash Sharpe Ratio 0.56 0.61 0.58 3.96% TENURE: 1 YEAR, 2 MONTHS Mean Return 18.70 19.06 19.70 BASED ON 3-YEAR PERFORMANCE. I The fund maintains mid-cap focus with slight The fund has shown higher volatility presence in both large- and small-caps. I compared to its category average. SOURCE: VALUE RESEARCH. SHOULD This fund lays emphasis on from trimming positions where value dislocation. While fund over past year. However, with YOU delivering superior risk-adjusted valuation appears stretched. The manager is benchmark aware, he the new fund manager running BUY? return. The fund manager prefers focus is on companies that offer prefers a bottom-up approach. The a fund independently for the first not to be tried to any investing strong compounding opportunity fund performance has been time, needs time to prove style, but favours growth. At the or potential for re-rating, while also inconsistent for many years execution capabilities over long same time, he doesn’t hesitate eyeing stocks with temporary but has shown strong pick-up haul.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 14 TARAKKI TIMES, JULY-AUGUST 2021 Fund Review ICICI Prudential Large & Midcap Fund Outlook Money | February 2021 Manager Biography And Fund Strategy The two-decade-old fund, ICICI having a slight growth tilt. Considering Prudential Top 100, adopted its Naren's style of investing, it isn't new name in 2018 and has seen a uncommon for him to trade aggre- gradual shift from being a pure large- ssively and buy/ sell stocks from the cap fund to a large- and mid-cap. The same sector based on relative valua- fund is jointly managed by Sankaran tions. With the fund's countercyclical Naren and Prakash Goel. Naren looks approach, he looks to safer stocks after the large-cap space, while Goel during the turmoil, and as the sector manages the mid-cap portion. The outlook improves, he moves into riskier investment team is remarkably large stocks. Given that Prakash Goel and collaborative, comprising 12 manages a significant allocation to research analysts and 11 portfolio mid-cap stocks, which are relatively managers (including head of research). risky, it could witness big declines in returns if not picked up carefully. The managers follow a disciplined investment process with a mix of value Taking cash calls is not a part of the and growth styles. With mostly a large- investment strategy. With the cap bias, they evaluate sectors from a increased exposure to mid-caps, the top-down perspective, favouring those manages have been maintaining a with attractive fundamentals and diversified portfolio of 60-65 stocks. shifting away from ones where they think valuations are stretched. Within the sectors, they use relative valuation parameters to invest in stocks that are attractively priced relative to their growth prospects. Companies favoured by the investment process typically display quality management, strong financial strength, and growth prospects. The resulting investment style can be best characterised as

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 15TARAKKI TIMES, JULY-AUGUST 2021 ICICI Prudential Short Term Fund Outlook Money | July 2021 borrowings, and fisca/monetary policy. Before implementing any trades, final Investment Strategy qualitative research and quantitative analysis are performed to understand ICICI Prudential Short Term Fund's and monitor risk in the portfolios. key strengths are its experienced team and well executed investment Spread analysis is the key feature of process. Portfolio manager Manish this portfolio, which helps to determine Banthia has been managing the fund the allocation to various segments since 2009 and has 14 years of such as corporate bonds, gilts, and experience, having previously worked cash. Execution has been good with as a credit analyst and in the product 60%-65%, which reflects his medium- function at ICICI Prudential. He counts term view, while the remaining 35%- on the support from his fixed-income 40% of the portfolio is managed team, one of the largest in the industry. tactically to take advantage of short- term rate movements. The credit The fund employs an investment profile of the fund is skewed to a process with a focus on safety, superior credit quality and investments liquidity, and returns. A comprehensive in lower-rated paper are restricted to in-house investment approach is driven companies where Bhantia has by a seasoned group of investment and confidence in the management and risk-management professional. The financials. investment process integrates quanti- tative and fundamental analysis following a disciplined and value-based approach. Top-down macro themes outline the overall strategy and provide a framework for their bottom-up security selection. The call on duration and interest-rate direction is deter- mined by conducting a detailed analysis of various influencing factors such as inflation, gross domestic product growth, trade deficit, money supply, private sector and government @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 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 Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 16 TARAKKI TIMES, JULY-AUGUST 2021 Channel Partners Distributor Insights Flexicap your mutual funds through choppy waters With a robust plan, limit your losses with large-caps while reaping in benefits with strong mid- and small- cap Outlook Money | July 2021 Vidit Bhura & equity mutual fund was intro- compared to mid and small caps in select opportunities and this is Nitish Purohit duced only in November 2020. funds. what a flexicap fund does. The This was following the rule that idea here is that if negative Partners multi cap funds have to Best category in existing triggers play out, large caps will JNV Financial Services mandatorily invest at least 25 per situation help limit downside as well cent each in large, mid and established large companies can When deciding to invest into smallcap stocks. This minimum With the Indian equity markets weather market challenges more equities through mutual fund, investment rule impacted the hovering around all-time highs, easily than mid and small caps. one is faced with a plethora of flexibility fund managers had the valuations have turned On the other hand, if positive choices. The challenge ahead is when it comes to invest as per expensive for most stocks triggers make their way, funda- to decide which is the category the changing market conditions. across market capitalisation. mentally strong mid and small of fund to invest into. Should it be Flexicap as a category was Reflecting on the prevailing cap companies can have good large cap, large and midcap, introduced to address this situation, even the Reserve Bank re-rating potential and can lead multi cap, midcap or small cap. If deficiency. Here, the fund of India in its annual report to better capital appreciation. large cap fund gives you stable manager had no restrictions mentioned that a bubble seems Because of this flexibility, having returns, then mid and small cap whatsoever in terms of allocation to be building in the stock exposure to this category can be funds presents higher growth and is free to invest across market, but ‘two-way price helpful especially when it comes potential. Amidst all these if you market capitalisations. movements’ are possible. Given to meet long term financial are wondering for an option the evolving developments goals. which can be considered best of The investment call in a flexicap around pandemic situation and both the worlds, then fund is largely based on valua- global growth recovery, it is very Takeaway you are looking for a flexicap tions and earnings potential. If likely markets may remain fund. large caps are cheaper, the fund volatile in the near term. The To conclude, just as a sturdy ship will have higher exposure in markets is faced with positive navigates across different wea- What are flexicap funds? them and if mid and small cap triggers such as economic ther conditions, a flexicap fund offer higher valuation comfort, recovery and earnings growth, with a robust model aims to work Flexicap fund, as a category of then the portfolio will be tilted while negative triggers such as across all market conditions. towards them. As a result of this rising US 10-year treasury yields Just the way a ship’s captain will flexibility, the fund provides the and inflation holds the potential assess risk factors, speed and fund manager a wide canvas to cast a long shadow on the time; a flexicap fund manager when it comes to making invest- market. will constantly analyse macro- ment choices. This dynamic economic factors to allocate nature to navigate across market Given these uncertain times, it appropriately between Large/ capitalisation makes tends to aid makes sense to invest into a Mid/Smallcaps. For those look- in delivering encouraging returns product which offers flexibility in ing to make an investment in this across market cycles. terms of investment. Even while category can consider a stagge- the equity markets have rallied, red investment approach in the Thus, flexicaps can act as good there are a few pockets where current market environment. compounders over long-term valuations continue to be rea- with relatively lower risk when sonable. This is the time to invest Even while the equity markets have rallied, there are a few pockets where valuations continue to be reasonable. This is the time to invest in select opportunities and this is what a flexicap fund does.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Channel Partners 17TARAKKI TIMES, JULY-AUGUST 2021 Distributor Insights Financial freedom through SIP & SWP With a robust plan, limit your losses with large-caps while reaping in benefits with strong mid- and small- cap The Week | August 29, 2021 Makesh Sivasankar Second, on completion of the meet one’s increasing expenses. To conclude, financial freedom SIP tenure, units accumulated need not be an elusive dream. It Chief Consultant are transferred to a pre-selected Through this feature, investors can be a reality if one is ready to Samish Financial Services scheme which is mostly a hybrid can withdraw a fixed amount ie 6 invest patiently over the longer fund. This step ensures that per cent per annum from the time frames. IT IS A KNOWN fact that while the corpus generated over the investment corpus along with an financial freedom remains an years is not exposed to undue option of annual top up of either Sivasankar is the chief con- elusive goal for most of the risk which the equity market 3 per cent, 4 per cent or 5 per sultant at Samish Financial investors, investors miss their presents. cent. The point to note here is Services. goals by a wide margin often due that through this feature, inves- to lack of planning and some- Third, a systematic withdrawal tors can register for monthly Financial times discipline. This is where plan is activated after the withdrawals only. So, how does freedom products which automate sav- transfer. If a SIP is registered for this feature work? need not be ings and withdrawal at a time eight years, then the monthly an elusive when it is required gains SWP installment is 1x monthly Under Freedom SWP feature, dream. It can precedence. SIP Installment. In case of 10, 12 investors make a lump sum be a reality if and 15 years, the withdrawal is investment into any of the one is ready Freedom SIP and Freedom SWP 1.5x, 2x and 3x respectively. For eligible schemes, which are to invest (Systematic Withdrawal Plan), example: If initial SIP registered mostly from the hybrid category. patiently both by ICICI Prudential Mutual for tenure of 12 years is Rs10,000 These schemes aim to benefit over the Fund, are notable products in this per month, then SWP will be from volatility and manage equity longer time regard. Freedom SIP encourages Rs20,000 (2x Rs10,000). exposure based on valuations. frames. an investor to invest regularly in a Thereafter, one has to make two disciplined manner via SIP and In this manner, a disciplined choices-top up percentage and enjoy the benefits of regular cash investor can create a sizeable SWP start date. flows post completion of SIP corpus over the years and meet period. On the other hand, one’s long-term financial goals The SWP of 6 per cent per annum t h r o u g h Fr e e d o m S W P, a n comfortably. will be calculated on the basis of investor, say during retirement the lump sum invested. Through days, can generate a cash flow Freedom SWP this arrangement an investor can stream through withdrawals in a ensure that he/she can maintain systematic manner. One has to prepare for retire- a certain lifestyle in future. ment during the working years Freedom SIP itself. Through Freedom SWP For example: For an initial feature, an investor can manage investment of Rs10 lakh and an The journey to financial freedom his/her future growing expenses iinitial SWP of 6 per vent per through Freedom SIP comprises in a very simplified manner. This annum, the withdrawals over the of three steps. First, an investor feature is an innovation over the next 5 years will be as follows: should decide a monthly SIP traditional SWP and helps over- amount and choose a pre- come the shortcomings of Monthly Monthly SWP Monthly SWP Monthly SWP defined tenure of 8 years, 10 traditional SWP. Installments years, 12 years or 15 years. with 3% Top with 4% Top with 5% Top In case of a traditional SWP, while expenses increase over the Up (`) Up (`) Up (`) years due to inflation, the cashflow from SWP remains 1 to 12 5,000 5,000 5,000 constant, thereby resulting in a huge gap between expenses 13 to 24 5,150 5,200 5,250 vs cash flow as the time progresses. 25 to 36 5,305 5,408 5,513 However, when it comes to 37 to 48 5,464 5,624 5,788 Freedom SWP, the cash flow gradually increases with time to 49 to 60 5,628 5,849 6,078

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 18 TARAKKI TIMES, JULY-AUGUST 2021 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Shrey Mehta Mutual Fund Distributor Asset Allocation should be the core pillar of an investment portfolio Shrey Mehta, a Computer Engineer from VIT Vellore and post-graduate in Management from IIM Raipur, worked across the Corporate World before he found his calling in financial advisory. As Shrey shares, “being able to help clients figure out their finances and achieve their goals is extremely satisfying. There is something new to learn every day; that's what keeps it interesting and challenging.” With his educational background as Computer Engineer, Shrey realized that the growth and scaling must be led by adopting fintech. Sanjay Mehta Financial Services (SMFS) was one of the first few companies in the mutual fund industry to go completely digital, allowing the firm to scale quickly. Shrey shares, “Staying digital has also helped us greatly during the current situation. Covid-19 could have been a great challenge, but as 95% of our workflow was already digital, we were able to transition very smoothly.” From humble beginnings around ten years back, SMFS has grown steadily to currently manage around Rs. 100 crores of AUM. While the first set of clients came in through personal referrals, word-of-mouth publicity and references led to the growth in the clientele. SMFS has also added many products and services to their offerings to deliver holistic money management solutions, including financial planning, investment advisory, insurance advisory, retirement planning, and tax planning. Talking about his journey as a financial advisor and his learnings through the journey, Shrey further shares, “success is a guaranteed outcome if you focus on the client's needs. Always be very transparent and never lead them to expect extraordinary returns. Behavioral management is much more important than picking an exceptional product.” When it comes to financial advisory, it is about attracting fresh investments and managing the existing investments well. Shrey shares, “Covid-19 was a real test of our conviction. As the markets crashed, many clients reached out to redeem their investments and stop their SIPs. We held extensive discussions with them to manage their emotions and present them with our research and data.” SMFS continues to advise its clients to maintain an optimal asset allocation in their investment portfolio. ARN - 135866

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 19TARAKKI TIMES, JULY-AUGUST 2021 mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | August 2021 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 12.92 13.41 13.65 27,994 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 12.08 9.11 NA 104 ICICI Prudential US Bluechip Equity Fund 21.10 18.76 NA 1,662 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 4.91 8.48 7.77 20,276 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | August 2021 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Sensex Index Fund 3-month 3-year 5-year - 10.76 15.38 47.96 14.8 16.19 49.64 13.99 14.63 ICICI Prudential Nifty Index Fund 10.02 12.9 EQUITY: VALUE ORIENTED 9.35 20.29 55.16 14.15 9.32 ICICI Prudential Value Discovery Fund 3.57 7.41 HYBRID: CONSERVATIVE (DEBT ORIENTED) 1.16 5.87 13.41 9.86 7.68 ICICI Prudential Regular Savings Fund 1.68 7.65 DEBT: MEDIUM- TO LONG-TERM 1.37 3.54 4.42 9.04 8.29 ICICI Prudential Bond Fund 1.47 7.75 DEBT: MEDIUM-TERM 1.41 4.31 7.87 8.53 ICICI Prudential Medium Term Bond Fund DEBT: SHORT-TERM 3.05 5.53 8.55 ICICI Prudential Short Term Fund DEBT: DYNAMIC BOND 3.46 6.05 9.31 ICICI Prudential All Seasons Bond Fund DEBT: CORPORATE BOND 3.08 5.42 8.57 ICICI Prudential Corporate Bond Fund

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 20 TARAKKI TIMES, JULY-AUGUST 2021 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | August 2021 Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR ICICI Prudential Bluechip Fund 19.9 48.0 13.0 13.7 ICICI Prudential Large & Mid Cap Fund 29.7 62.7 14.5 13.1 ICICI Prudential Multicap Fund 29.9 63.0 13.1 13.4 ICICI Prudential Midcap Fund 36.3 76.8 15.9 15.4 ICICI Prudential Smallcap Fund 49.5 105.9 22.2 16.9 ICICI Prudential Focused Equity Fund 27.2 51.0 14.6 12.8 ICICI Prudential Value Discovery Fund 29.1 53.9 14.9 12.7 24.7 56.5 13.8 13.4 ICICI Prudential Long Term Equity Fund (Tax Saving) 33.1 64.9 11.5 12.8 ICICI Prudential Dividend Yield Equity Fund ICICI Prudential FMCG Fund 10.5 23.4 7.3 11.2 ICICI Prudential Infrastructure Fund 40.6 78.2 13.3 12.0 ICICI Prudential Banking & Financial Services 26.9 69.3 9.6 13.8 ICICI Prudential Technology Fund 43.6 102.2 35.6 28.6 ICICI Prudential P.H.D Fund 19.6 41.1 27.4 - ICICI Prudential Equity & Debt Fund 29.4 54.2 15.2 14.2 ICICI Prudential Equity Savings Fund 7.1 15.7 8.1 7.9 ICICI Prudential Ultra Short Term Fund 2.5 4.7 6.9 7.1 ICICI Prudential Savings Fund 2.4 5.3 7.6 7.5 ICICI Prudential Money Market Fund 2.2 3.9 6.5 6.7 ICICI Prudential Short Term Fund 2.2 5.1 8.4 7.7 ICICI Prudential Medium Term Bond Fund 3.4 7.5 8.4 7.7 ICICI Prudential Bond Fund 1.0 3.6 8.7 7.4 ICICI Prudential Long Term Bond Fund -1.5 0.6 8.9 7.5 ICICI Prudential All Seasons Bond Fund 2.3 5.4 9.1 8.3 ICICI Prudential Corporate Bond Fund 2.2 4.9 8.5 7.8 ICICI Prudential Credit Risk Fund 4.0 7.8 8.7 8.2 ICICI Prudential Banking & PSU Debt Fund 2.2 4.9 8.0 7.6 ICICI Prudential Gilt Fund 1.1 3.2 9.3 7.9 ICICI Prudential Regular Savings Fund 5.5 13.3 9.4 9.2 ICICI Prudential Balanced Advantage Fund 10.8 26.1 11.4 10.5 ICICI Prudential Child Care Fund (Gift Plan) 16.5 36.4 10.0 9.9 Source: NAV India; NAV for the growth option as on 06-08-2021. Past performance may or may not sustain in the future. It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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