Tarakki Times English March-April 2022

\"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 | MARCH-APRIL 2022 | PAGES 16 Professional Views Pg. 2 Market volatility: What should investors do? The Mutual Fund Show: Why Asset Allocation Funds are a Good Bet for Fy23 Bloomberg Quint | April 02, 2022 Nimesh Shah, MD & CEO Pg. 5 Market correction a good opportunity for long-term investors to enter Moneycontrol | March 09, 2022 Pg. 6 Even as FIIs flee in hoards, S Naren Nimesh Shah Times of India | March 07, 2022 growth outlook, CASA and sees value opportunity in India MD & CEO resilient portfolio stands to gain. stocks ICICI Prudential Mutual Fund be on a mend. India corporate Also, gross NPAs have been profit to GDP had fallen from 8% largely contained for large The Economic Times | March 11, 2022 Off late the Indian equity market in 2008 to 2% in 2021. In the days private banks. Over FY19 to in line with global markets have ahead, with the growing FY21, certain private banks have Powell or Putin? turned volatile. Markets have economy and rising inflation registered double digit loan S Naren's theory of 3 Ps been on edge due to geo- trajectory, we believe corporate growth, which is higher than the on who might drag Nifty political tension coupled with the earnings will improve over the industry growth and have down US Fed and other global central coming quarters. Despite the improved their market share as banks embarking on a tapering rise in input costs, India Inc’s well. The Economic Times | March 17, 2022 and probable rate hike journey. third-quarter performance data shows that consolidated net Autos, we believe is a space S Naren, ED & CIO However, when looked at from a profit of Nifty companies (ex- which currently offers value as it domestic perspective, India BFSI) jumped nearly 30 per cent is available at reasonable price. Pg. 7 seems to be on a strong footing. year-on-year (YoY). Gross sales The sector has been under stress Realty upcycle will help housing This has been largely possible too increased 29 per cent YoY due to pandemic induced stocks deliver alpha in long run because the Government has during the same period. It is lockdowns but there are The Economic Times | April 06, 2022 already set the ground for a estimated that the Nifty50 companies here which enjoy strong economic growth over corporate earnings are expected strong balance sheet and good Pg. 8 the next decade through to rise by 30% in FY22 and corporate governance. Among passage of bold reforms such as another 15% in FY23. Given the defensives, pharma holds Invest in thematic funds with a R E R A , G S T, I n s o l v e n c y & India’s growth prospects, the the potential to render stability to long-term view Bankruptcy Code, China + 1 FY23 valuation which is currently portfolio while providing strategy, reduction in corporate trading at around 20 times looks reasonable upside. Financial Express | April 07, 2022 tax rate etc. to name a few. This reasonable. was further bolstered through Another aspect in favour of Pg. 9 Budget 2022, wherein the In terms of sectors, we are Indian equities is that unlike the Best Short Duration Fund 2022: Government with its stable tax optimistic on manufacturing United States, India is far from ICICI Prudential Short Term Fund policy, focused on programmes theme. Since 2018, China is peak both in terms of corporate Morningstar | March 25, 2022 to encourage capex in infra- becoming increasingly non- profits and valuations in terms of structure (multiplier effect), competitive in manufacturing market cycle. In effect, the long Pg. 10 focus on new age, sunrise due to pollution control norms, term outlook looks promising. ICICI Prudential Value Discovery sectors, all of which was very rise in labour costs etc. This Fund offers 34% returns in one year. well accepted by the market. augurs well for manufacturing What should an investor do? Should you invest? across rest of the world and The Economic Times | April 12, 2022 Thus far, the macroeconomic gives Indian manufactures the Keeping in view all of the Investors upbeat on realty may handling of the economy. since opportunity to improve their scenarios, at a time when equity consider ICICI Pru's new fund the onset of the pandemic period profits and gain global market as an asset class is no longer The Economic Times | March 29, 2022 has been exceptional along with share. cheap, it is prudent for investors the support of the RBI through its to take a calibrated approach. Tarakki Corner monetary policy measures. As a Another sector we are result, Indian economy has been constructive on is the banking The easiest way to navigate Pg. 11 Abhijeet Mukharjee a resilient one. sector, especially large corporate through such uncertain times is banks. As the economy by adopting an active Mutual Fund Distributor Keeping pace with the economy, recovers, large corporate banks management approach and corporate earnings too appear to which are reasonably positioned Pg. 12 Ashish Modani in terms of net stressed loans, Mutual Fund Distributor Distributor Insights Pg. 13 Ways to invest during special situations Outlook Money | April 2022 Pg. 14 How to optimise post-retirement regular income Outlook Money | January 2022 Fund Review Pg. 15 List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 16 List of ICICI Prudential Funds in Star Track Mutual Fund Contd. on page 4

\"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, MARCH-APRIL 2022 Interview The Mutual Fund Show: Why Asset Allocation Funds are a Good Bet for FY23 Bloomberg Quint | April 02, 2022 Amid geopolitical challenges normal year; we got anything invests in mutual funds, what Nimesh Shah ranging from the Russia-Ukraine but a normal year. As a mutual was your key learning for FY22? MD & CEO conflict to rising oil prices, fund manager and investor, volatility may persist in this fiscal what are the key learnings for Nimesh Shah: Over the last 10 ICICI Prudential Mutual Fund as well. In such a situation, you? years, I have been talking about mutual fund investors can opt for volatility and how mutual funds that volatility, then it can be a very asset allocation funds that span Nimesh Shah: Actually, mutual should gain from it. I'm happy good instrument. investments across categories, fund investors should be super that the whole market is talking according to veteran fund happy this year. I'm saying that about it. Is that how you foresee FY23? manager Nimesh Shah. not only because of the growth of the market, but also because Even 10 years ago, I would talk Nimesh Shah: The next 12 to 18 The next 12 to 18 months will be of the broadening of the market. about Balance Advantage Funds. months will be extremely volatile extremely volatile for Indian If you see its performance, it is so because of various global markets due to global turmoil, Exactly a year ago, I was trying to satisfying that after taking sub- reasons - whatever is happening Shah, managing director and explain that the rally in the stantially lesser risks, the fund in the Ukraine-Russia front or in chief executive officer at ICICI markets is quite a narrow rally. has given a good customer the U.S. Because of the external Prudential Asset Management There are 10 stocks, and those experience; it’s way beyond our world, there is going to be a lot of Co., told BloombergQuint’s Niraj stocks have given so much expectation. volatility in Indian markets, and Shah. return as compared to the rest of we need to learn. The last six the stocks, and the rest of the The success of Balance Advan- months have been unpre- But heightened volatility could market is lagging behind. tage Fund in the last one year or cedented. benefit mutual fund investors as the years before that clearly certain schemes can time the This year has been a year of shows that a mutual fund has to If somebody would have told you highs and lows better, and market broadening and there’s a be alert to what is happening in that in six months’ time, FIIs are provide gains as well as tax broad rally across stocks. Mid the market. You cannot have going to sell Rs 2,40,000 crore of benefits, he said. caps have done better than large stagnant equity allocation, equity, and we will still be at caps; small caps have done even irrespective of what is happening 58,000, you would have said I Unlike FY22, this fiscal is starting better. in the market. have lost my mind. on the back of a “market broadening”, which should So, those quality names which In the last two months, when the Even in this month, if you see the provide fund managers oppor- were doing well earlier, say in markets corrected to 53,000, the kind of flows that are coming, tunities to outperform, said 2018-2019 and 2020, have not asset allocation in equity should mutual funds have withstood all Shah. “In a broad rally, mutual done well in 2021-22, and the have gone up and debt com- the selling of the FIIs. I think it's funds always do well.” rest of the market has really ponent should have come down. only DII vs FII which is going on in picked up. Mutual funds and When markets approach 58,000, the market. According to Shah, asset their investors would be very then the equity allocation has to allocation funds are the best happy. go down. That principle is At the levels at which we are right option for FY23, as it factors in established. now, there is no issue in India. the volatility and enables port- Mutual funds are diversified India is doing well. Overall, with folio diversification. instruments by nature, so in a I am happy that the mutual fund the oil prices at (the level) which narrow rally, they never do well. industry has gotten into Balance they are, I don't see a serious Instead of bracketing stocks as In a broad rally, mutual funds Advantage Funds. Earlier, I was issue. large caps, mid caps and small always do well. That's the beauty the only guy talking about it. caps, Shah prefers to focus on of this year. Now, whichever advertisement There will be adjustments, some value stocks irrespective of you see or mutual fund house, companies will not make money market cap, though he admits to For mutual fund investors, this it's satisfying that the industry is or make less money, or grow less being slightly biased towards would be a much better year than talking about it. This category will than envisaged. That will be large-cap stocks given the the years before because their become bigger than the equity internal. But macrowise, even “better risk-return reward”. funds would have done better. category in mutual funds. after oil prices at current levels, Broadening of the market is the Indian macros are not extremely Shah is upbeat on the Indian single-most important theme Volatility is expected to only hassled. economy, which he considers to that I will talk about for 2021-22. increase from here. This cate- be well-placed to manage gory will become very big. The That's a positive trend. We are challenges, including currency Volatility, as I said last year, has levels at which the markets are comfortably placed as far as India fluctuation and higher oil prices, just started. Volatility in the already, it might be that you can is concerned, but volatility will as we are less vulnerable in Indian markets will only increase make money out of volatility and come from the external world and terms of revenues and forex the levels at which we are today, not necessarily money out of it can come in a big way. reserves. the levels at which the rest of the holding. Just because you hold world is, and what is happening some stocks, it is not necessary Here are the edited excerpts in the rest of the world is going to that you make money. from the interview: bring in a lot of volatility. But if you have a tax-efficient At the end of FY21, many The standout feature of FY22 structure like a mutual fund, and thought that the volatility was was the broadening of the there is volatility and your over and FY22 might be a market. But for you, who also scheme is supposed to trade in

\"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, MARCH-APRIL 2022 Are you comfortable with the it flexi cap category – mutual debt, commodities, and maybe Do you reckon that 50% into dollar at 110, because some funds have that option. even global equities – equities, and out of the people believe it will cause presuming that at some point, remaining 50%, some into debt India to either overshoot the Within that, I prefer large caps as you will be allowed to start and some into commodities is a fisc or compromise on the right now, it looks like a better investing in it again? good allocation? capex? risk-return reward. Always give flexibility to the fund manager Nimesh Shah: We have Nimesh Shah: (We have Nimesh Shah: I'm not saying that when the world changes, launched a Passive Multi Asset invested in) International equity that I am comfortable. Of course, they are able to change with that. Fund. I have the choice of because of the state at which it is an effect. I'm saying that investing in Indian equity, foreign Indian markets are. Indian India has the strength to I prefer giving flexibility to the equity, debt, etc. There is a lot of markets are at an 80% premium withstand that, unlike earlier fund manager across capita- flexibility across asset classes, to MSCI. So, the rest of the when we used to get worried lisation. Don't restrict them into and I invest in those ETFs. emerging market is quite cheap; with our forex reserves, our schemes which have got a fixed the rest of Asia is quite cheap. If ability to generate tax revenues, capital. Always go for flexi cap in It gives a tremendous amount of our forward PE is at 20, for MSCI, increasing GST revenue, and that category. There are a lot of flexibility based on the levels of the forward PE is 11. increasing direct access possibilities within that. the market. revenue. Today, it is about diversifying Value funds can also be flexi We have invested around 50% across countries. Why should we Both on the fiscal as well as funds. Say, there is a value fund between equity and international put the entire money into India current account side, we have whose stocks have not done well markets – around 30% plus is in itself when other countries are the strength to withstand the over the last five years, but over equity markets in India, and available relatively cheaper? dollar at 110, unlike what had the last one year, they have done around 20% internationally. My happened in earlier rounds very well. numbers are somewhat less That is why I feel that the Passive where we were vulnerable. We accurate, but around 50% is in Multi Asset Fund is a very good are no longer vulnerable to that We have a value fund which was Indian and foreign equity, and category. During the year, we extent. not doing well till 2019- 2020, but 38% is in debt. Some part of it have created a series of products which is doing exceedingly well would have gone to gold. where you can do asset alloca- Definitely, it will affect us as a in the last two years since Covid- tion in a tax-friendly manner. country, but not to the extent that 19. That is the segment that has It is time to give flexibility to the it would have had it happened come alive again. So, even in a fund manager over the next two Investors should understand three or five or 10 years ago. value category, you can go to three years to invest across fund of funds categories. It will across market capitalisation. asset classes. That flexibility is require basic common sense. If volatility is going to be the also available within fund of You don't have to be a financial name of the game for the next ICICI Prudential is focused funds. So, fund of funds are a wizard. You will see where the 18 months, and if the towards large cap than mid cap very important category. fund manager is allocating the broadening of the market has and small cap, because some of monies. already started, Balanced the valuations have run up. But Earlier, we used to toggle in a Advantage Funds might be the again, it is a stock picker’s thing like the asset allocator fund Interest rates are rising, so debt primary criteria. But if one is market. between equity and debt. Now, markets are not very easy to looking at a pure equity fund we have the choice of toggling invest in. When people want to and a simple bifurcation Within industries, there are a lot between international equity, park money for a shorter period between large cap, mid cap, of value picks available. I am Indian equity, gold and debt. It also, we say floater interest rate small cap – I can throw in a flexi moving towards value rather gives complete flexibility to the is the best possible. In a rising cap as well – what do you than being fixated over which fund manager where they want interest rates. reckon is a better bet for an market cap to go for. to allocate and it is very clear in investor who's willing to bet our passive asset management In debt funds, we have a scheme right now and hold it for the If you were to make a fund. called the ICICI Prudential next three to five years? bifurcation between asset Floating Interest Rates. That is classes, and if somebody is not The fact sheet will be out very interesting in the scenario Nimesh Shah: Actually, mutual putting money in a multi asset tomorrow and the disclosures. that we are in today, and it might funds have got a huge category – fund but choosing to allocate Yo u c a n s e e h o w w e a r e be the right place to invest. whether you call it large and mid- individually, what is the right distributed among various asset cap category or whether you call allocation between equities, classes. In the debt category, one has to Interest rates are rising, so debt markets are not very easy to invest in. When people want to park money for a shorter period also, we say floater interest rate is the best possible. In a rising interest rates.

\"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, MARCH-APRIL 2022 Interview be alert and only (opt for) floating manage NIIs well. They have got invests in themes, and we will industries that benefit from interest rate type instruments. a huge market to be taken from decide the entry and exit point. housing growth in India, and the overall banking system in the As fund managers, we have banks which do great business You have consistently come up country. created some internal models. from lending. with thematic funds – a couple of years before they caught So, if we believe that, then there I like the banking sector today; it Overall, it's quite well-diversified everyone’s fancy – and they've will be a huge allocation in has corrected a lot. Auto is because you get banking, steel given good returns in the past. Thematic Advantage in banking another place which has not companies, and various sectors As a fund house, what are the funds itself. Suppose banking done well in the last two years including cement which is themes or sectoral funds where does very well over the next two and is another sector that we expected to do well. All those you believe people should months, I can decrease the like. We also like housing and sectors are present in the fund. It actively look at investing in, weightage of the banking fund. believe that real estate is going is a great opportunity. We whether in the form of SIP or to do very well. launched the fund yesterday. For lump sum? Themewise, we like our pharma the next 14-15 days, the NFO is fund. We came up with the For seven to eight years, real out to offer ICICI Prudential Nimesh Shah: Why do we come pharma fund after four years of estate has not done well. In the Housing Fund. with so many thematic funds? underperformance. Pharma had last one-year, real estate has We believe that mutual funds or not done well from 2016 to 2019. started picking up. Inventory in What is your key advice for fund of funds are a great way of Then, we came up with this fund the country has gone down big mutual fund investors for Fy23? investing in thematic funds. I and it has done well. After a bad time. Unsold inventory is at an all- have launched something called cycle of commodities for four to time low. We like everything after Nimesh Shah: Asset Allocation a Thematic Advantage Fund. It five years, we came up with the underperformance. Funds, Asset Allocation Funds, has a good track record. commodities fund, which has Asset Allocation Funds. That's given amazing returns in the last Either you go and invest on your the message. This has not Suppose you have a view on a two years. own in houses, but if you don't changed in the last so many sector that it should do well, want to do so, you can invest in years, and that continues perhaps the banking sector. The For an aggressive investor who the ICICI Prudential Housing especially for the year going investor has to take the decision wants to invest in equity and Fund. It will not only invest in real forward because markets are not of entry and exit. And when he themes, there is nothing better estate companies, but also in expensive. We are sitting on a exits, suppose he invests in two than the Thematic Advantage whatever goes into housing – forward PE of 20, with a lot of months’ time, the returns come Fund. It's a fund of fund which including cement, steel, various uncertainties around the world. in two-three months’ time and you will have to pay full capital Banking is a good space India is doing well. There's gains tax on it. Short-term capital to invest in because nothing wrong with India. But gains will have to be paid on that. private sector banks are there are too many uncertainties beautifully placed. Their around the world and India is at a We have launched a Thematic balance sheets are clean substantial premium to the rest Fund of Funds where we will and the credit cycle will of the world. So, it is better to go decide which themes to invest come round. for a series. Whether you take a in. We will invest in those Balanced Advantage Fund, Asset categories that are within the Allocation Fund, Passive Multi company. So, I have all the Asset Fund, or a Multi Asset themes in the company. Fund. We have created a whole category of funds which have Banking is a good space to invest various allocations to equity. in because private sector banks Take your pick from that. But are beautifully placed. Their Asset Allocation Funds should balance sheets are clean and the be the mantra. credit cycle will come round. Even if interest rates rise, private sector banks will be able to Market volatility: What should investors do? Contd. from page 1 recommend schemes which where scheme category such as to mitigate potential risks and access to various asset classes have the flexibility to invest the multi-asset comes in. provides tactical allocation to a within a single fund, investors across different asset classes, particular sector. Most often can consider this category for market cap and themes. By investing in a multi asset fund, such funds have exposure to lump sum investor in the current an investor gets exposure to equity (in some cases even market environment. Here, an Historically, data shows that several asset classes within a international equities), debt, gold investor does not face any tax winners keep changing every single offering. Here, depending and other asset classes. The impact when the portfolio is other year. For example: While on the market situations and basic premise is equity provides rebalanced, making it a win-win equity was the chart topper over various other factors, the fund the growth element through for the investor. the last two years, gold led the manager has the flexibility to capital appreciation while debt returns chart in 2018 and 2019 by make the most of the investment renders the much need stability (Nimesh Shah, MD & CEO, ICICI delivering returns to the tune of opportunities across sectors. to the portfolio. Gold, meanwhile Prudential Mutual Fund) 24.6%. Similarly, debt too had its Also, a fund manager will be provides hedge against inflation. years of outperformance. This is monitoring the portfolio regularly Given that an investor gets

\"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, MARCH-APRIL 2022 Market correction a good opportunity for long-term investors to enter Moneycontrol | March 09, 2022 The veteran asset manager believes Russia’s invasion of Ukraine is different from geopolitical crises of the past. The current market mayhem is opportunity to buy in the past there is a problem with the Sankaran Naren presenting a good opportunity but do you feel this time it’s business cycle at this point in ED & CIO for long-term investors to different and if not, is this the time. The challenge currently is systematically start investing perfect time to dive into mainly in the form of higher ICICI Prudential Mutual Fund over the next 12-18 months, equities once again? commodity prices. Sankaran Naren, Chief You have a 10% exposure to Investment Officer at ICICI You used the magic words: this So far inflation has not been a gold in your Multi-asset fund, Prudential Asset Management time is different. The reality is, major headache for the RBI but which did come down by 100 Company told Moneycontrol in and I was just telling my one gets a sense that what has bps in January from the an interview. colleagues this that after spend- happened to crude oil it will December level. Going ahead, ing 18 years at ICICI Prudential eventually become a big do you expect to be increasing The veteran asset manager luckily, I had not seen war. concern. Your thoughts. your exposure to the yellow believes Russia’s invasion of Unfortunately, I'm seeing one metal? Ukraine is different from geo- now and it's very depressing. A massive rise in the oil prices political crises of the past, which which has happened is negative We will do whatever is logical has made the near-term outlook So the reality is that it is a very for India. In the past, oil price from an investor's point of view, for equities “very difficult to complicated situation. Hence the increases resulted in oil subsi- and the framework of the fund. predict”. outlook for the near term dies between 2011-13 which led We try to see what we can do becomes very difficult to predict. to an increase in the current from a risk-adjusted return point Naren also sheds light on a However, for the market to account deficit and Rupee of view at all periods of time. difficult situation for the Reserve deliver returns, the Ukraine spiraling. Inflation too edged Bank of India because of soaring conflict has to resolve. higher. Coming back to the macro oil prices and gives his thought picture, one of the collateral on where the currency may go in So the near-term market However, commodity prices damages of the current Ukraine the current scenario. prospect is totally dependent on going up is a challenge for the crisis has been the rupee. Do the outcome of the Ukraine RBI and the Indian economy. you do see further risk for the Edited Excerpts: issue. If the issue escalates, currency given that we are further correction cannot be If you're sitting in the RBI’s chair, seeing a widening of the Tables have turned very quickly ruled out. In case the conflict is it is a very big challenge today to current account deficit? on the bulls. Three months ago resolved, there is a possibility of decide how much of the inflation things looked hunky-dory and a sharp trading rally. is transitory if one of the world's The Reserve Bank of India has now we are worried about a biggest providers of sunflower managed Rupee brilliantly. Last third World War. How exposed The lesson that we have learned oil goes away, aluminum and year, they accumulated $150 do you feel investors are even over the years is to practice asset steel prices shoot up. billion of foreign exchange though we have had about 15% allocation at such uncertain reserves. correction from the top? times. For a long-term investor, From the point of view of an the current market correction investor like us, we can find So, Rupee is not in any way a I think investors are exposed offers a very good opportunity to products like floating rate bonds brittle or fragile currency. Having because if you look at supply and invest systematically over the that are very attractive because said that, with the tide of oil demand dynamics, over the last next 12 to 18 months as we we don't need to worry about prices turning, trade deficits will four months, while foreigners remain positive on India’s long- anything there. go up. I think the phase of rupee have been the sellers, local term structural story. appreciation is over and how investors have been buyers. Would you expect the RBI to much it depreciates depends on Also, there was retail euphoria We urge investors to adhere to now take more cognizance of what happens to crude oil prices which was evident in IPO their asset allocation with inflation and probably quicken and various other parameters. I oversubscriptions. systematic investing both in the pace of normalization that would still say that things are equity and debt funds. probably would have not stable but not as good as 2020 The continuous one-way move happened if this situation had and 2021. I think we are headed from April 2020 till Nov. 2021 The external sector is obviously not occurred? for a more volatile period on the made investors believe that now the biggest threat but in currency, but India is not fragile. there are no risks in equity light of recent domestic data, Since there is a time gap On the deficit side, the situation markets. Both valuation and are you readjusting your between the two MPC meetings is not as comfortable as in 2020 investor exuberance was a expectations from the so, if the situation in Ukraine and 2021. problem which is why we domestic economy, especially does not normalize till the next recommended asset allocation on the consumption and capex MPC they will have absolutely no and debt funds. side? choice but to normalize because the oil will be so high till then that Geopolitical tensions have There is no problem with Indian if they don't normalize, we would always been a good economic recovery. I don't think have a real inflation shock.

\"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, MARCH-APRIL 2022 Interview Even as FIIs flee in hoards, S Naren sees value opportunity in India stocks The Economic Times | March 11, 2022 Sankaran Naren Three months back, “both valua- helped Indian stocks avoid a expecting a sharp rally in equities ED & CIO tion and investor exuberance sharp rout as the surge in oil if the Ukraine invasion is ICICI Prudential Mutual Fund were a problem, which is why we prices raised concerns of an resolved. After that, the market recommended asset allocation inflation shock in the energy- will refocus on Fed tightening, One of the largest local Indian and debt funds,” said Sankaran importing nation. which could lead to another bout funds is turning bullish on the Naren, Mumbai-based chief of volatility, and offer buying country’s equities just as foreign investment officer at ICICI The S&P BSE Sensex this week opportunities, Naren said. investors are exiting Indian Prudential Asset Management climbed more than 2%, snapping stocks at a record pace. Co. its longest run of weekly declines ICICI’s Multi-Asset Fund, which since April 2020. Foreigners sold invests in stocks, bonds and But now, “value opportunity in nearly $3 billion worth of Indian gold, has beaten 98 percentile of stocks is more and we think over stocks last week, the biggest peers over last three years while the next 2-3 years, the weekly outflow ever. its Value Discovery Fund opportunity will continue to outperformed 93 percentile of exist.” Though the near-term outlook funds in the similar category remains “complicated,” the fund during the same period. Sustained buying by domestic manager, with $64 billion of investors like ICICI Prudential has assets under management, is Powell or Putin? S Naren's theory of 3 Ps on who might drag Nifty down The Economic Times | March 17, 2022 Describing Federal Reserve's Powell has increased interest “We have always believed in a more interesting period where rate hike plan as a risk for equity rates by 25 basis points in a bid to asset allocation. Ever since the investors have to be more dis- investors in the medium-term, fight inflation. Signalling rate central bank-led bull market ciplined. Everyone thinks that it is Dalal Street's veteran fund hikes at all remaining six meet- ended in November 2021, we too easy to make money in the manager S Naren believes that ings this year, the US central have been stating it very clearly,\" market. It is not the case. One there are three Ps - (Fed Chair bank has projected its policy rate Naren said. has to be disciplined and that's Jerome) Powell, (Russian would hit a range between 1.75 the reason why mutual funds President Vladimir) Putin and the per cent and 2 per cent by year’s When asked about how should exist,\" Naren said. potential of India - that will affect end. one go about restructuring the investors in the days to come. portfolio in current times, he ICICI Prudential Value Discovery Naren, who handles assets cited his ABCDEF framework - Fund, which is managed by him, \"I think the near term risk is worth $64 billion, said the asset allocation, booster STP has delivered an impressive clearly war. In the medium term, solution for investors during the (systematic transfer plan), cons- return of 25 per cent in the last it is the Fed and the long term current phase of the market is ervative investing, debt mutual one year despite all the volatility (opportunity) is the Indian nothing but asset allocation and funds for capital protection, around. structural story. There is Putin, systematic investment plans equity arbitrage and fund of Powell and the potential of India. (SIPs). \"Nothing else helps you in funds (FoF). “We believe that value is in a very I call it the three Ps,\" Naren, the long run and protects you in interesting framework over the Chief Investment Officer, ICICI the near term,\" the money \"We are not in an easy position at long term but you should not Prudential AMC, told manager said, asking investors this point in time given the look at a one-year framework ETMarkets.com in an interview. to bet on the potential of India in elevated equity market valua- while evaluating value. Over the the long term but to not forget tions and the Fed being in a last 18 years that the fund has In the first such hike since 2018, risk. tightening mode. I think we are at been in operation, there have been periods like the ones in We have always believed in asset allocation. 2007 and 2017, when the fund Ever since the central bank-led bull market did not do well. But if you look at ended in November 2021, we have been stating it it over a longer period of time, very clearly. value is a very interesting cate- gory because we try to look for areas which the markets are ignoring and where there is a big intrinsic value.\"

\"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, MARCH-APRIL 2022 Realty upcycle will help housing stocks deliver alpha in long run The Economic Times | April 06, 2022 Anand Sharma When it comes to a fund like impact on real estate and was segment picks up the entire Fund Manager ICICI Prudential Housing instrumental in reducing over- ecosystem including consumer ICICI Prudential Mutual Fund Opportunities, the fund manager supply and bringing down real electronics, appliances, real has the flexibility to toggle estate inventory to a comfortable estate developers all end up With low interest rates and between various sectors and level. performing well. liquidity glut leading to a stay invested in those sectors/ strong pick-up in demand, the stocks which are likely to do well. Historically, some amount of We believe the entire housing residential real estate market rising interest rates have not ecosystem seems well-placed appears to be on the cusp of an Can you explain how you go impacted the housing eco- and has the potential to deliver upcycle. While one category of about deciding on the system adversely. The bigger alpha. investors are betting on real allocation part? aspect which needs to be estate stocks, others are more considered is affordability. While What are the risks that an bullish on proxy plays like paints, The allocation towards sectors selling prices across most micro investor must keep in mind tiles and sanitary ware, home and stocks will be a mix of top markets remained stagnated, while betting on the housing appliances, etc. down and bottom up stock income levels have inched theme? picking. The aim is to have a upwards. Fund manager Anand Sharma, good mix of large, mid and Apart from the general equity who is going to manage the smallcap names which can have Data shows that the ratio of EMI related risks, since the fund is newly-launched ICICI Prudential good earnings potential over the to net income of a household in thematic in nature there could be Housing Opportunities Fund next few years and are available top cities has gradually reduced periods of sharp up and down along with S Naren, says that the at reasonable valuations. over the last decade. This shows cycles. While the theme looks entire housing ecosystem that we are fairly comfortable on comfortably placed over the next seems to well-placed and has We will be taking active bets in the affordability aspect for the five years, if the real estate the potential to deliver alpha. the portfolio on various stocks next few years. segment goes into a down cycle, and sectors from time to time. some of the names in the In this interview, he argues that The portfolio can go overweight When it comes to inflation, in the portfolio could be affected. amid increasing urbanisation or underweight based on the near term, real estate developers Hence, invest in thematic funds rate in India, sectors like con- comfort we have in various could hike home prices as a with a long term view. It is sumer electronics, appliances, sectors and the individual stocks means to pass on some of the advisable to consult your finan- paints and sanitary ware are a in that particular sector. impact of the rising raw material, cial advisor to know the suita- structural story given their robust labour, finished product price bility aspect. demand outlook over the next You have a lot of sectoral rise. few years. Edited excerpts: diversity within the theme - Do you see segments like right from banks and metals to However, over the long term we paints, consumer electronics, Given the cyclical nature of consumer goods. How do you believe steady demand, overall appliance and sanitary ware as cement, steel and power, how make sure that you don't end affordability and demand-supply a structural story in India, given would your housing oppor- up over diversifying? equilibrium will help determine the demography and rising tunities fund protect investors the profitability of the industry. urbanisation? during down cycles? Would the There is a good amount of Hence, organized players are focus of the fund shift towards sectoral diversity in this theme. better placed to handle some of The urbanization rate in India has segments like consumer elec- When the housing industry does the inflationary pressures which been very sharp over the last one tronics, sanitary ware, home well, the entire ecosystem could eventually aid in them decade with urban population appliances, etc. during the around housing such as banks, gaining market share from some growing by more than 3x the down cycle? NBFCs, housing finance com- of the un-organized players. growth rate of rural population. panies, cement, metals, real We believe this trend is likely to Every sector has its own cycle, estate, construction, power, For someone looking to continue in the future as India based on its individual industry consumer durables and building generate alpha, do you think slowly catches up with the world dynamics. At any point in time, materials all end up benefiting. betting on consumer with respect to urbanization rate. our allocation will be based on So, our focus is to judiciously electronics, appliances, etc are At the same time, a larger the comfort we have on cycle, invest in only those names with a better proxy bet than real working population will lead to earnings growth potential and robust earnings potential and estate developers? rising household income. valuations of a particular sector valuations across the available and consequently individual universe such that investors The sectors that are a part of this All of this will benefit sectors like names from that sector. have a good long term theme are all sectors which are a consumer electronics, app- experience. part of the housing eco-system liances, paints, sanitary ware which includes the realty sector which are now a matter of While there are clear signs of an stocks as well. comfort and upgraded lifestyle. upcycle in the housing theme, We expect these to be a struc- do you think inflationary Typically, consumer electronics, tural story given their robust environment and rising interest appliances have some element demand outlook over the next rates can play spoilsport? of replacement and fresh de- few years. mand in the existing house-holds Low interest rate had a positive as well but when housing as a

\"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, MARCH-APRIL 2022 Interview Invest in thematic funds with a long-term view Financial Express | April 07, 2022 The real estate space has affordability and lower home can be seen from the housing Chintan Haria gone through a time correction loan interest rates are creating demand and supply numbers in Head-Product Development starting from 2013 and is a conducive environment for the top 7 cities in India. This is attractively priced currently. housing and allied themes. likely to lead to less pressure in & Strategy Also, the oversupply of 2008- real estate prices which will ICICI Prudential Mutual Fund 2012 appears to be digested as Moreover, the government has ultimately help the housing can be seen from the housing been trying to stimulate activity theme to perform better. cycles. Hence, invest in thematic demand and supply numbers in in the sector through various funds with a long-term view. the top 7 cities in India. This is supportive measures such as When it comes to portfolio However, the theme looks likely to lead to less pressure in affordable housing, affordable construction, which are the comfortably placed over the next real estate prices which will rental housing complex (ARCH) sectors the fund will be taking five years. It is advisable to ultimately help the housing scheme, increase in capex, exposure to? consult your financial advisor to theme to perform better, says stamp duty cuts, 100% FDI for know the suitability aspect. Chintan Haria, Head-Product townships and settlements The scheme has the flexibility to Development & Strategy, ICICI development projects, to name a invest in basic eligible sectors Should investors opt for Prudential AMC. few. India being one of the that form part of the Nifty lumpsum or SIP in this fund? fastest-growing economies Housing Index. Some of the In an exclusive interview with should see strong demand for sectors which the fund can Investors should look at their Sanjeev Sinha, Mr Haria talks housing as was seen historically invest in include real estate overall asset allocation and plan about their recently-launched in other developed economies. developers, financial services their investments after con- housing theme-based fund and providing housing finance, sulting their investment advisor. shares his views on what makes Real estate has gone through a cement and cement products, During the NFO period (up to him bullish on the housing down cycle for nearly a decade. consumer electronics, paints, April 11, 2022), the minimum theme. Excerpts: Do you think the correction is steel, home appliances, and application amount is Rs 5000. finally over? sanitary ware, to name a few. ICICI Prudential AMC has launched a housing theme- The real estate space has gone What should investors keep in based fund. What makes you through a time correction mind while investing in a bullish on the housing theme? starting from 2013, a phase thematic fund like Housing when the gains from both lands Opportunities Fund? We believe housing is at the cusp and buildings were muted. As a of a strong cycle. India’s result, we believe the segment is Apart from the general equity- favorable demographics, grow- attractively priced currently. related risks, since the fund is ing middle class population, Also, the oversupply of 2008- thematic in nature, there could increased urbanization, better 2012 appears to be digested as be periods of up and down India being one of the fastest-growing economies should see strong demand for housing as was seen historically in other developed economies.

\"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 9TARAKKI TIMES, MARCH-APRIL 2022 Best Short Duration Fund 2022: ICICI Prudential Short Term Fund Morningstar | March 25, 2022 ICICI Prudential Short Term Fund Can you take us through your concept for approval of credit disruption in supply chains and won the Morningstar Fund credit selection strategy as investments with the decision to heightened risk premiums in Award 2022 under the Short your fund house has been invest in any debt instrument financial markets. Duration category. Manish relatively immune to the credit being taken after in-depth credit Banthia, Senior Fund Manager - events witnessed by the review and not based on the sole So, from that perspective, risk Fixed Income, ICICI Prudential industry in the past? judgment of the fund manager. management becomes para- AMC, takes us through how the This helps in mitigating individual mount in terms of portfolio fund house has remained It helped that we were probably biases and makes the decision- management. Compared to past immune to credit events and one of the early movers among making more reliant on credit years, the room for mano- how he is striking a balance the fund houses having insti- processes. euvrability for the Reserve Bank between liquidity, safety and tuted an in-house independent of India too has substantially return. risk management team en- This philosophy has enabled us reduced. This calls for a certain trusted with overseeing credit to deliver a superior investment degree of caution. From a During November 2009- evaluation and approval experience to our investors. historical standpoint, Indian fixed December 2021, the fund processes. income remains expensive so outperformed most of its How are you striking a balance there is no point in being overly category peers. What worked The risk management team is between liquidity, safety, and aggressive in terms of investing. in your favour? independent of the investment return to ensure investors have team and does not have any a better experience with the In such an environment, invest- Apart from active duration return targets. fund? ors can consider investing in management based on a view on Floating Rate Bonds as this interest rates, the fund has used We have always believed that There is a basic framework on product benefits from interest a complete breadth of strategies credit rating is one of the inputs which every fund operates. Here, rate hikes. ranging from State Development in investment decisions, but not the fund predominantly invests Loans (SDLs), Overnight Indexed the sole determinant. The deci- in AAA-rated and government How do you plan to sustain the Swap (OIS) spreads, investing in sion to onboard a credit is taken securities. performance of the fund going Bank Perpetual Bonds, AA-rated after detailed due diligence. ahead? corporate bonds, Floating Rate So, liquidity is not a concern. Bonds, positioning on yield curve As part of the credit due dili- From a credit selection point of We will continue to work on the etc. to generate alpha returns. gence, we consider various view, the process earlier dis- framework and strategies follo- The approach while deploying aspects such as financial and cussed helps in the right asset wed thus far. The fund will not these strategies has always been operating parameters, manage- selection. In effect, a balanced shy away from taking a differen- to choose the ones which ment profile, industry outlook, approach between safety and tiated stance on the market provide high margins of safety competitive positioning, key liquidity aids in consistency and compared to its benchmark or taking benefit of market dis- risks, mitigants, etc. This dis- continuity of return. peer group. locations or extremes. cipline has helped us to avoid potential problems. How has been the impact of the The fund has always followed Ukraine-Russia war on the discipline and risk management The two key tenets of our credit Indian fixed income market and frameworks while using these decision-making have been the how are you tackling it? differentiated strategies. The focus on client selection and approach has been akin to avoiding concentration. The Ukraine-Russia conflict value-based investing in equity indirectly impacts India by way of markets. We follow the “four-eyes” increased commodity prices, From a credit selection point of view, the process earlier discussed helps in the right asset selection. In effect, a balanced approach between safety and liquidity aids in consistency and continuity of return.

\"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, MARCH-APRIL 2022 Interview ICICI Prudential Value Discovery Fund offers 34% returns in one year. Should you invest? The Economic Times | April 12, 2022 ICICI Prudential Value Discovery aided in the strong performance Klarman because of the bad the performance of the fund Fund, a favourite of many mutual of the fund. Furthermore, we investment years they had,” says regained its pace and again fund investors and managers, is believe adherence to a stable, Naren. started delivering returns for its back with a bang. After offering time- tested investment process investors. Value funds can go muted returns for more than two and framework as a team helped Mutual fund advisors maintain through a period of under- years in a row, the scheme is now the fund in delivering a positive that value investing is for performance when compared to back on track. investment experience,” says S investors who understand its Growth Funds as the way both Naren, CIO, ICICI Prudential principles. There could be long these funds are managed is Many value investing fans are Mutual Fund. periods of underperformance different. Value funds may rejoiced. The scheme is offering followed by great outper- underperform growth funds in 34% returns in one year, and Many mutual fund investors formance. If you can’t stomach overvalued market conditions. 6.17% returns in three months. were anxious about the fund’s the volatility, you might make the They can also help in lesser The fund has regained the underperformance till last year. wrong decision of selling your capital erosion during a market number one spot on the return investment in loss. correction. From an investment chart in 2022 (YTD). Some investors kept asking in perspective, you may have an various mutual fund forums “The fund did underperform for allocation of 15-20% in value The performance of the scheme whether they should stop quite some time before the funds if you wish to diversify had taken a serious hit in 2019. investing in the fund. “I am of the market correction due to Covid- across styles of fund mana- Before that the scheme went on view that if customers are taught 19. The market correction at the gement,” says Harshad and off the grid from 2017-2019. what value investing stands for, beginning of 2020 impacted the Chetanwala, Founder, My Wealth The scheme returns were down then they will be patient valuation of most of the stocks Growth, a wealth management 31% in the period from 22 March investors. This is because in the and this worked as a good firm based in Mumbai. 2019 - 23 March 2020. long run, value investing works. opportunity for value-oriented No one left Warren Buffet or Seth funds. It is from this stage that However, the scheme has turned around since April 2020 as value Returns 6-month 1-year 3-year 5-year investing was back in fashion in ICICI Pru Value Discovery Fund 6.15 34.32 22.43 15.58 the uncertain market. S&P BSE 100 TRI 0.60 22.02 17.02 15.24 Value category 1.07 25.79 18.21 13.83 “Our overweight stance in sec- tors like auto, telecom and pharma along with select holdings in metals and oil & gas Investors upbeat on realty may consider ICICI Pru's new fund The Economic Times | March 29, 2022 Savvy investors looking to bet on Sankaran Naren and Anand and buildings since 2013 leading 2017, has delivered CAGR the housing and real estate Sharma, and will be bench- to time correction of physical returns of 5.43% since its theme after a long time- marked against the Nifty assets, the segment is attrac- inception in December 2017. correction can consider a small Housing Index. tively valued. The oversupply of allocation to the new fund offer 2008-12 appears to be over and Financial planners point out that of ICICI Prudential Housing \"The housing sector in a country will lead to less pressure in real it is important to time entry and Opportunities Fund. Since it is like India is bound to do well over estate prices and help the exit in sectoral funds to generate important to time entry and exit the medium term due to housing theme to perform better. alpha. into thematic bets to generate favourable demographics, rising alpha, financial planners believe middle-class population, \"Current dynamics suggest that \"With the sector having gone first-time investors should stay increased urbanisation, better the demand is gradually sur- through years of pain, aggressive away. affordability and reasonable passing the incremental supply investors can look at partici- interest rates,\" said Deepak of new houses in India and pating in the NFO for a 3 to 5 The new fund offer of ICICI Jasani, head of retail research, higher urbanisation would mean years horizon,\" said Vij. He Prudential Housing Oppor- HDFC Securities. He believes higher demand for real estate,\" believes it will be a good idea to tunities Fund is currently open over a five-year period, there is a said Vishal Vij, founder, Nestegg exit and book profits once the and closes on April 11. Investors good chance that this fund will Wealth. market starts factoring in over- can start with a minimum outperform the Nifty. optimism in this space. amount of `5,000, and for This is the second offering in the redemptions within a month, an Analysts believe that oversupply housing opportunities space. exit load of 1% is applicable. The in the real estate space is over, HDFC Housing Opportunities fund will be managed by and with muted gains from lands Fund, launched in December

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Tarakki Corner 11TARAKKI TIMES, MARCH-APRIL 2022 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Abhijeet Mukharjee Mutual Fund Distributor Abhijeet Mukharjee, 34, a Hazaribagh-based mutual fund distributor manages asset worth ` 32 crore and serves nearly 1,900 clients. With a monthly SIP book of ` 31.5 lakh, Mukharjee, who is quite passionate about MFs, aims to help his clients create serious wealth in life. A little over four years into the MF distribution business, he believes there are no shortcuts to hard work. Operating in a small town, Mukharjee is confident that coming years will see his clients and him grow further. After passing out from college in 2007, young Mukherjee started his career in the insurance industry. He was good at bringing in sales. \"Through working in insurance distribution, I had an experience in how to approach clients and convince them. I thought I was a good salesperson,\" says Mukharjee. It was in mid-2016 when blessed with a daughter; he embarked on a journey of self-introspection and questioned himself if he could keep doing work like this! “I thought I need to do something different for me, my family, and my kid. But I didn't know what to do,\" Mukharjee reminisces. During the time he was into insurance distribution, he had got a hang of mutual funds. \"I had an idea that mutual funds help create enormous wealth over the long-term,\" he says. It is this thought that led him to consider MF distribution. Within a year of becoming a father, he quit his insurance job and started his own distribution business in 2017. He set up his office, Aadya Yojna under his daughter's name, Aadya. After two years, he changed it to 'The Investor's Store'. Coming from an insurance background, the road ahead was not an easy one for Mukharjee. The impact of demonetisation was everywhere. \"My relationship manager suggested selling small-cap funds, which I did. But in 2018, when small caps went into a tailspin, I had an unpleasant experience,\" he says. He read investment-related books to enhance his knowledge. Meanwhile, DHFL and IL&FS crisis unfolded and Mukharjee learned more about financial investments and the risks involved. It was then that he got to know about the debt side of mutual fund. Mukharjee, good at playing cricket, observes that, for overall team performance, players like Dravid and Sehwag are a must. He learned that concentration of a similar kind of schemes in clients' portfolios could be perilous. \"So, I began diversifying the portfolio and opted for categories like the balanced advantage wherein investors can get the best of both asset classes - equity and debt,\" explains Mukharjee, who is continuously learning daily. Through this journey, he realised the benefits of asset allocation. A firm believer in India's growth story, Mukharjee always tries to encourage his clients to invest from a long-term perspective. He firmly believes that understanding the importance of financial planning is of paramount importance, he says. “I tell clients that the products they use like motorcycles, soaps, aata are mostly made by the companies from the listed universe. If you invest in them, over time you will surely create wealth,\" explains Mukharjee his strategy. Though Mukharjee is new to the MF business, he is ambitious and is looking forward to expanding his reach. \"In the next two years, my vision is to open 5-7 offices away from my current location and reach an asset base of ` 100 crore,\" he says passionately. \"The day when my client walks in with his/her kids and recognises me as the person who helped him/her achieves financial freedom, it would be a happy moment for me. I am working towards that goal,\" Mukherjee sums up with conviction.

\"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, MARCH-APRIL 2022 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Ashish Modani Mutual Fund Distributor Ashish Modani, 41, a Jaipur-based mutual fund distributor manages assets worth ` 1,100 crore. A certified financial planner, Modani has over 4,000 active clients and a 35-member team in his company - SLA Finserv. A self-made man from a humble family background, Modani's 17-year journey into the mutual fund distribution business has been quite a roller coaster ride. But his desire for betterment of people's financial life made him a successful entrepreneur in the mutual fund distribution arena. It was in 2002 when Modani started searching for jobs after completing his CA. Post a few months of struggle, Modani, then 23, joined the general insurance division of a financial firm in Delhi. However, within a year-and-a-half, he was called back home as his family's financial condition deteriorated. \"My father informed we had fallen into financially challenging times and must get out of it. The only problem - I did not know what to do. Neither had I the money nor any guidance on what I should get into,\" recalls Modani. It was then that his father suggested starting a mutual fund distribution, since this business needed no seed capital. \"But the challenge was, I knew nothing about mutual funds. All I knew was that I am extremely good storyteller,\" he chuckles. March 2004 marked Modani's entry into mutual fund distribution, which he terms as 'accidental' given that the step was out of a compulsion, he says. Markets then were doing great as the bull run had just set in. Soon, another personal tragedy hit Modani - he lost his father in 2006. It was a major setback, but he remained focused on distribution. He was barely 5 years into the business and his assets touched ` 30 crore in 2008. Still in his 20s, Modani thought he was too smart a person, as he didn't face any upheavals in business. “The markets did absolutely great between 2004 and 2007. I developed a notion that I am the one who is intelligent and tuned into a super-optimistic and over-confident person,\" he admits. Then came the 2008 crisis - wiping two-thirds of the wealth within a year. \"I had a real torturous time during 2008-14. I even thought of getting out of the business, but soon realisation set in. On introspection, it was clear that I lack knowledge and am probably not doing the right set of things,\" says Modani. He soon realised that his actual work was not to manage numbers but investors' behaviour. The hard phase made him learn about managing investors' behaviour. \"Today, with no hesitation, I can say that those tumultuous 6 years made me what I am today,\" he explains. The positive impact of the journey he embarked on was very much visible. When the country's mutual fund industry's total assets were static, Modani reached an asset size of 210 crore by the start of 2014 - a sevenfold increase since the start of 2008. His hard work had paid off. According to him, most investors are in for the long-term as long as the markets are doing great. The actual role of an advisor is to deal with an investors' irrational behaviour with money, he says. Modani firmly believes that a successful distributor is the one who walks along with his investors till the time they meet their financial goals. Along with that, one needs to keep investing in business as well. He emphatically says that mutual fund distributors are blessed with perennial employment. My only advice to my fellow distributors is Lage Raho (keep working). The way we advise SIPs to investors, distributors need to have long-term SIP as efforts to be successful,\" Modani outlines his mantra for success.

\"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 13TARAKKI TIMES, MARCH-APRIL 2022 Distributor Insights Ways to invest during special situations Emotions might dictate you to stay away from risky assets like stocks, but strategic investment in equities always has the potential to create wealth in the long term Outlook Money | April 2022 Suresh Sharma Vishal Mahajn manager who can interpret the regulatory changes, companies implications of that opportunity. going through temporary unique Partner Partner This style of investing is a challenges, and other similar Sixth Element Capital Sixth Element Capital bottom-up stock picking style instances. because the core of its invest- The ongoing global conflicts and India is a country with a horde of ment strategy is identifying As an investor, it is important to the pandemic have wreaked fundamentally strong com- companies in special situations. understand that a special situa- havoc across the world and have panies, and at any given time, This requires rigorous, 360- tion can arise at any point in time affected each one of us in many some of them may be facing degree stock research, some- for a company. So, to capture several ways. In addition to the turbulence or going through thing best left to the experts. We such opportunities, as an inves- enormous loss of life and temporary downturns. These have to be savvy enough to tor, it is better to take a staggered livelihood, the calamities have temporary challenges act as differentiate between uncer- approach to investing in such a had other more insidious effects, special situations that can tainty and risk, and know which fund through systematic invest- including a sharp surge in crude become inflection points for the side to pick. ment plan (SIP) with a long-term oil prices, along with a plunge in company. view. In this way, an investor stock prices. As the world Getting The Most Out Of can maintain a disciplined and eagerly awaits a solution to this Potential Opportunities Uncertainty regular way of investing, which ongoing crisis, people are ultimately will aid in the invest- wondering how they can What are some of the situations Most investors prefer investing ment generating relatively better safeguard their future and which can be turned into oppor- after they have achieved some returns. Another aspect an inves- wealth. tunities? Special situations clarity over how events pan out. tor should be mindful of should arising out of a temporary crisis However, history is proof that be to remain invested in such During unexpected scenarios, it in the company, sector, eco- greater uncertainty can lead to funds for at least three-to-five is imperative that along with nomy, or government actions, higher rewards. In line with this years, such that the turnaround helping those in need, one regulatory policies, global events view, and with the vision of stories can play out. should also focus on building a or uncertainties-all these can be offering investors an opportunity nest egg which can stand in considered as opportunities. to make the most of the So, while there is generally a good stead during times of crisis History indicates that the best of uncertain times, several fund great deal of fear and risk such as these. This is where sectors, from automobile to real houses are offering special associated with uncertainty, mutual fund investing for special estate and telecom, have gone situation-based mutual fund investors should realise that situations comes in. through their fair share of offering. uncertainty is often temporary, trouble, only to emerge stronger and those who can optimally While emotions might dictate in the long run. In addition to the These funds aim to generate identify the opportunity in that you should keep miles away ongoing sector issues, we are longterm capital appreciation by uncertainty, stand to benefit over from riskier assets like stocks, also faced with the broader investing in opportunities the long term. and turn towards safe havens macro challenges of high crude presented by special situations, like gold and silver, it is important oil prices, new Covid-19 vari- such as corporate restructuring, to not give in to fear. You must ants, rising interest rates, and government policy and/or look towards strategic oppor- supply chain bottlenecks and tunities in equity, as it could shortages. Several fund houses are potentially help you turn a crisis offering situation-based into an opportunity for long-term These situations present an mutual funds, which invest in wealth creation. investment opportunity to a fund opportunities, such as corporate restructuring, government policy, to create wealth.

\"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, MARCH-APRIL 2022 Channel Partners Distributor Insights How to optimise post-retirement regular income Conservative hybrid funds not only help you beat inflation but also ensure higher returns thanks to the tinge of equity flavour Outlook Money | January 2022 Pratibha Boppana way that it earns more than 6 per earlier) when you invest in a systemic withdrawal plans cent while you are withdrawing conservative hybrid fund. This (SWPs). Relaxing on an armchair at your regular income from the same on ensures that you don’t deviate dream place, listening to a monthly or a quarterly basis. It from the investment goal. Since inflation will reduce the favourite music and taking a sip is easier to beat inflation at a purchasing power of rupee, your of tea – in utmost comfort. This is young age when you can invest a More Tax-Efficient withdrawals have to grow by how one pictures life post- large part of your portfolio in some amount year-on-year. retirement. But do you know equities. Since the bulk of the portfolio is how to get there? Real comfort invested in debt instruments, The challenge with common comes with financial comfort. But investing in direct stocks or these funds follow the tax SWPs is the withdrawal amount You have earned, saved, and equity mutual funds is not structure of a debt fund. remains constant over the years. invested enough all through your advisable after you turn 60. You need a pay-out that keeps life. Senior citizens should rather So, the capital gains (when you growing as years go by. invest in different kinds of debt withdraw) are taxed depending Now it is time to deploy that mutual funds or consider inves- on how long the investment was So, a feature like Freedom SWP capital efficiently to enjoy the ting in the lesser-known product held by you. comes in handy. You have the fruits of your wealth accu- category called conservative flexibility to top-up your with- mulation. Most senior citizens hybrid funds. If units are withdrawn within drawal amount by some per- put their retirement corpus in three years, then it is termed as centage, which will help take fixed deposits, debt mutual What Is A Conservative Hybrid shortterm capital gains (STCG). care of rising inflation. funds, or senior citizens’ savings Fund? These gains/ profits are added to schemes. But there is a better your income and are taxed As you step into the sunset years way to manage your investments Hybrid funds lie somewhere according to the income tax slab of your life, figure out how much post-retirement, which not only between equity and debt funds. you fall in. monthly regular income you beats inflation but ensures There are various types of hybrid require post-retirement. higher returns with a tinge of funds. Depending upon the type If the units were held for over equity flavour – conservative of hybrid fund chosen, their three years, the gains are Accordingly, accumulate a retire- hybrid funds. investment universe ranges classified as long-term capital ment corpus. Keep a portion of it across equities, debt, gold, real gains (LTCG) and taxed at 20 per in a conservative hybrid fund and Beating Inflation estate investment trusts (REITs), cent along with indexation opt for Freedom SWP. infrastructure investment trusts benefits. The most important aspect of (InvITs), etc. investing for old age is yield on Planning Withdrawals investment. It should beat Conservative hybrid funds invest inflation. For example, if the 75-90 per cent of their total Investment is just a single step in inflation in the economy is 6 per assets in debt instruments, and post-retirement life. You need to cent, then your retirement the rest 10-25 per cent in equity. manage withdrawals too in an corpus should be deployed in a This is why they are called appropriate manner for regular conservative because a major income. Here comes the role of part of the portfolio is invested in debt instruments, which have Conservative hybrid funds the potential to cushion any invest 75-90 per cent of their downfall in the portfolio. total assets in debt instruments, and the rest 10- The equity exposure ensures 25 per cent in equity. that you earn more than what you would otherwise earn on fixed deposits, pure debt mutual funds or senior citizens’ savings schemes. Some asset management com- panies put a lock-in of 5 years or till retirement age (whichever is

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 15TARAKKI TIMES, MARCH-APRIL 2022 mint List of ICICI Prudential Funds in Mint 20BEST FUNDS Mint | March 2022 HYBRID 3-year return (%) 5-year return (%) Corpus (Rs cr) BALANCED ADVANTAGE ICICI Prudential Balanced Advantage Fund 12.27 10.40 39,479 DEBT Corpus (Rs cr) DCREBEDT-IOTRRIIESNKTED 1-year return (%) 3-year return (%) ICICI Prudential Credit Risk Fund 6.22 8.04 8,333 ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | March 2022 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Sensex Index Fund 3-month 3-year 5-year HYBRID: AGGRESSIVE (EQUITY ORIENTED) 0.07 - ICICI Prudential Equity & Debt Fund 5.31 0.78 21.74 16.11 HYBRID: CONSERVATIVE (DEBT ORIENTED) 0.99 15.16 ICICI Prudential Regular Savings Fund 0.13 7.61 35.70 19.81 9.04 DEBT: MEDIUM- TO LONG-TERM 0.87 6.74 ICICI Prudential Bond Fund 0.74 2.38 10.13 9.65 7.12 DEBT: MEDIUM-TERM 0.66 7.00 ICICI Prudential Medium Term Bond Fund 0.77 0.17 2.81 7.28 7.53 DEBT: SHORT-TERM 7.18 ICICI Prudential Short Term Fund 1.57 5.02 7.84 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 1.28 3.98 7.29 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 1.00 4.06 8.02 1.31 4.03 7.32

\"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, MARCH-APRIL 2022 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | March 2022 Scheme Name BL Rating YTD Absolute Trailling Returns (%) 5 Year CAGR 1.6 1 Year CAGR 3 Year CAGR 14.0 ICICI Prudential Bluechip Fund 2.8 13.1 ICICI Prudential Large & Mid Cap Fund -0.4 22.0 16.0 11.7 ICICI Prudential Multicap Fund -2.1 30.2 18.3 13.0 ICICI Prudential Midcap Fund 0.3 22.7 14.3 15.8 ICICI Prudential Smallcap Fund 0.1 24.6 18.1 13.3 ICICI Prudential Focused Equity Fund 6.2 39.9 26.8 14.4 ICICI Prudential Value Discovery Fund 0.6 22.9 17.2 13.1 ICICI Prudential Long Term Equity Fund 31.2 20.4 (Tax Saving) 3.7 23.0 16.3 12.5 ICICI Prudential Dividend Yield Equity Fund 2.1 11.8 ICICI Prudential FMCG Fund 8.3 36.6 17.7 12.4 ICICI Prudential Infrastructure Fund 1.4 18.3 11.3 9.8 ICICI Prudential Banking & Financial Services -6.3 36.3 17.3 32.2 ICICI Prudential Technology Fund -6.0 12.9 7.8 ICICI Prudential P.H.D Fund 5.7 47.4 39.3 - ICICI Prudential Equity & Debt Fund 2.4 12.6 24.6 14.9 ICICI Prudential Equity Savings Fund 1.0 32.5 19.1 7.4 ICICI Prudential Ultra Short Term Fund 0.8 8.1 7.8 6.5 ICICI Prudential Savings Fund 1.0 4.0 5.9 6.8 ICICI Prudential Money Market Fund 0.7 4.2 6.5 6.3 ICICI Prudential Short Term Fund 0.8 3.8 5.5 7.0 ICICI Prudential Medium Term Bond Fund 0.0 4.2 7.3 7.1 ICICI Prudential Bond Fund -0.5 5.4 7.9 6.7 ICICI Prudential Long Term Bond Fund 0.5 3.3 7.4 6.6 ICICI Prudential All Seasons Bond Fund 0.7 1.9 6.8 7.4 ICICI Prudential Corporate Bond Fund 0.5 4.4 8.1 7.2 ICICI Prudential Floating Interest Fund 1.5 4.3 7.4 6.6 ICICI Prudential Credit Risk Fund 0.6 4.0 6.6 7.7 ICICI Prudential Banking & PSU Debt Fund 6.7 8.2 6.9 4.6 7.2 ICICI Prudential Gilt Fund -0.2 4.0 8.1 7.3 ICICI Prudential Regular Savings Fund 1.0 9.4 9.5 8.9 ICICI Prudential Balanced Advantage Fund 1.7 12.1 12.0 10.5 ICICI Prudential Child Care Fund (Gift Plan) -1.0 17.4 11.2 9.2 Source: NAV India; NAV for the growth option as on 01-04-2022. 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.