Tarakki Times English Feb-March 2023

\"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 Professional Views MUMBAI | FEB-MARCH 2023 | PAGES 13 Pg. 2 Consider 2023 as a year Large Cap to invest for long term Striving to do a little better every year Sankaran Naren Business Standard | April 10, 2023 dynamic-duration schemes. Business Standard | March 14, 2023 ED & CIO ICICI Prudential Mutual Fund attributable to strong corporate We are structurally big believers Anish Tawakley and bank balance sheets, the in debt allocation. Consequently, Markets have entered 2023-24 central government’s focus on investors can consider investing Deputy CIO Equity & Head of Research (FY24) on a cautious note. building long-term infrastructure in categories like equity savings, Sankaran Naren, executive that is likely to have a multiplier multi-asset allocation funds, Pg. 3 director and chief investment effect, and policies to help aggressive hybrid funds, and Short- and medium officer at ICICI Prudential Asset invigorate India’s manufacturing balanced advantage funds as a duration Management Company, in dream. way of investing partially in debt. Active play pays conversation with Puneet dividends Wadhwa, says that leadership - These measures bode well for What is the road ahead for Business Standard | March 14, 2023 in case markets rally from here domestic markets. Hence, we flows into equity markets? on out - will emerge from areas are of the view that markets are Manish Banthia outside retailing and consumer in better shape for the long term. Foreign institutional investor (FII) staples, as these pockets Investors should consider 2023 inflows will pick up meaningfully Senior Fund Manager - Fixed Income continue to remain expensive in the year to invest for the long when the US Federal Reserve terms of valuations. Edited term, without worrying about the shifts towards a pause on rate Pg. 4 excerpts: near-term outlook. hikes and takes a more dovish This ICICI Pru's Rs 7,000- tilt. crore money manager Are markets - global and Which sectors are you bullish explains why next domestic - yet again in a March on? Furthermore, if the economy 12 months will be better 2022-like situation where they does well, there is no reason why for stocks than FY23 see a sharp correction and We believe leadership - in case FIIs will not invest in a delivering Business Today | March 29, 2023 give investors a one-time markets rally from here on out - economy like India. opportunity to buy for the long will emerge from areas outside Anand Shah term? retailing and consumer staples, In the last financial year, while as these pockets continue to FIIs sold out of Indian markets, Head - PMS & AIF Investments By and large, the Indian equity remain expensive in terms of domestic institutional investors market is in a better position than valuations. went on a buying spree, thereby Pg. 6 it was in March 2022. Valuations offsetting most of the selling are much more reasonable now In most other areas, valuations pressure. The Morningstar India Fund and supported by robust have corrected meaningfully. Awards 2023 domestic macros in the form of a Except for select pockets in mid- In terms of domestic flows, the lower current account deficit. and small-caps, this space, too, systematic investment plan book Pg. 7 Much of the rate-hiking cycle, appears reasonably valued. has held steady above Rs 13,000 TMF: Best way to lock too, is behind us, even though crore, in the face of market in yields at the end of market levels are where they What’s your view on invest- volatility - a trend we believe is rate cycle were 18 months ago. ment in the debt segment after likely to persist. Deccan Herald | March 26, 2023 the recent developments? How long do you expect Which type of debt funds do Is the rise in Covid cases a non- Chintan Haria markets to remain range- you see investors latching on event for markets? bound? to? Head - Product Development & Strategy If the number of cases was to While global uncertainty prevails, Debt as an asset class has a rise and consequently physical Distributor Insights on the domestic front, India is prominent role to play in every movement restricted, it would relatively well-placed. This is portfolio. Investors can opt for Pg. 8 short-duration schemes and How to plan effectively for long-term goals Outlook Business | February 2023 Pg. 9 Where can investors find value in fixed income? Outlook Money | March 2023 Tarakki Corner Pg.10 Prasad Dharmadhikari Kolhapur, Mutual Fund Distributor Pg.11 Pratikkumar Ashokbhai Shah Vapi, Mutual Fund Distributor Fund Review Pg.12 List of ICICI Prudential Funds in Star Track Mutual Fund Pg.13 List of ICICI Prudential Funds in Mint ETW Funds 100

\"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, FEB-MARCH 2023 Interview influence economic activity. earnings growth? likely to be about 15 per cent. We manufactured goods exports. Consequently, markets, too, are particularly upbeat about would feel the impact. If the We believe that corporate banks, especially corporate How should investors caseload is controllable, earnings growth will be robust banks. The existing books have approach the consumption hospitalisation low, mortality and will not be a source of worry been stress-tested incremen- space - fast-moving consumer minimal, and the health care in the foreseeable future. The tally. Asset quality and credit goods, consumer durables, etc system is not overwhelmed, worst of the margin pressures costs of corporate banks will be - amid inflation fears and the markets may consider it a non- are behind us as input price more benign than they were probability of an El Niño event. pressures are abating. these past few years. The sector weather pattern? will also be a beneficiary of a What’s your view on corporate The earnings growth for FY24 is revival in manufacturing and We will have to wait for El Niño and accordingly assess its The earnings growth for 2023-24 is likely to accompanying risks. Moreover, be about 15%. the margins of companies in these sectors were unsus- tainably high and are likely to disappoint. Large Cap Striving to do a little better every year ICICI Prudential Bluechip Fund has generated higher returns than its benchmark over the one- and three-year periods by minimising risk and focusing on steady performance Business Standard | March 14, 2023 Anish Tawakley Prudential Bluechip Fund gene- says. His outlook for Indian longer have an incentive for Deputy CIO Equity & Head of rated returns nearly two percen- markets is positive. He believes holding on to land, because the Research tage points higher over the one- that housing could be a key stock market no longer values it. ICICI Prudential Mutual Fund year period ended December 31, trigger for the recovery. India 2022, than its benchmark under may finally be coming out Tawakley believes that a surge Legendary investor Howard Tawakley's stewardship, even as cleaner after a tumultuous 20 in housing driven by these Marks, Oaktree Capital’s co- assets crossed the `35,000 years in housing which started structural changes can also have chairman and co-founder, wrote crore-mark. with the Sarfaesi Act (Securiti- a positive impact on manu- a memo to his clients in 1990, sation and Reconstruction of facturing. The number of manu- where he talked about two fund Even on a three-year basis, his Financial Assets and Enforce- factured goods depends on the managers. One had done very fund's net asset value (NAV) grew ment of Security Interest Act, size of one's house - whether its poorly recently, and said that at a compounded annual rate of 2002). This legislation allowed fixtures, air conditioners and being a top performer also 16.14 per cent, higher than the banks to freely lend for homes, other durables, or even textiles, requires taking risks that can take benchmark's 15.48 per cent. In a since they had a tool for recover- where the size of your wardrobe you to the bottom. The other market where algorithms buy ing their money, creating unpre- can determine the number of fund manager noted that he and sell stocks in under a cedented housing demand. clothes or shoes you buy. preferred to avoid taking the second, his average holding risk of underperformance and period is over three years. Around the same time, stock \"We can get a sustained recovery instead only strove to do a little markets began to value real driven by housing and cons- better every year, stating that this Tawakley's risk management is estate companies not on the truction. If housing starts off, eventually makes one a top per- thorough but the approach basis of the houses they built, then that will create domestic former. Marks said he preferred helped him avoid other fund but the land they owned. A demand for manufactured the second approach. managers' mistakes - like the lot of unfinished houses later, goods,\" he says. meltdown in start-up and the bankruptcy code and the So does Anish Tawakley, Deputy technology stocks. He believes establishment of real-estate Tawakley is also positive on Chief Investment Officer that not every company is like regulators has made builders domestic cyclicals like capital (equity), and Head of Research Amazon, which was famously more accountable. This has goods, some financial-sector at ICICI Prudential Asset unprofitable for years before cleaned up the supply side of companies and cement firms. Management Company, who becoming a mammoth profit housing, similar to how Sarfaesi was influenced by Marks’s letter. machine. \"One Amazon is used cleaned up the demand side, to justify...a thousand sins,\" he says Tawakley. Builders no Ensuring steady performance helped him win the Business Fund Name Fund Return (%) AUM (`crore) Standard Fund Manager of the Year 2022 award in the Equity - ICICI Pru Bluechip Fund 1-year 3-year Large Cap category. The ICICI Source: Morningstar India 6.85 16.14 35,049 Data as on December 31, 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.\" Interview 3TARAKKI TIMES, FEB-MARCH 2023 Short- and medium duration Active play pays dividends ICICI Prudential's short-term and medium-duration funds outperformed on the back of timely shifts in strategies Business Standard | March 14, 2023 Managing a short-term debt fund period, during which he de- was raising the policy rate, fixed- Manish Banthia might appear to be an easier job ployed different strategies rate bonds were set to take a hit, Senior Fund Manager - in the fund management space, almost every year to tide over so the schemes increased since the mandate allows little interest-rate uncertainties. exposure towards floating-rate Fixed Income room to take duration or credit bonds. ICICI Prudential Mutual Fund risk. However, ICICI Prudential For example, he used the barbell Mutual Fund's Manish Banthia strategy in 2022 to benefit from \"Then you can change the get used to it,\" says Banthia. has consistently found ways to the rise in 10-year yields. \"The portfolio depending on which derive the best out of the limited curve was very steep. While the segment among AAA corporate, According to him, the solution management scope available in longer- duration bonds were SDLs (state development loans) also lies in taking both those these funds. attractive, the shorter end of the and government securities looks within the organisation as well as curve was expensive. So, we cheaper,\" says Banthia. investors into confidence. He \"I may not trade on an everyday bought 14-year papers and kept therefore lays a lot of emphasis basis but my portfolios look very cash in the portfolio instead of However, things may not be as on communicating his thought different at different points of low-to-medium duration papers,\" easy as they look. Deploying the processes regularly to win time,\" says Banthia, winner of Banthia explains. right strategy at the right time investors' trust. But even the best the Business Standard Fund can only happen if one has a of frameworks and processes Manager of the Year 2022 award The strategy not only benefited robust framework to analyse the cannot always help make the in the Debt - short- to medium- the schemes by way of higher market situation, and fund right decision, he believes. duration category. yields from longer-term papers, managers can save themselves but also shielded them from from falling prey to \"sentiments \"Finally, luck plays a big part and it Two of the funds managed by interest-rate hits when the yields or attractions and distractions has been on my side,\" Banthia Banthia - ICICI Prudential Short started to go up at the shorter from the market\". admits with a smile. Te r m a n d I C I C I Pr u d e n t i a l end of the curve. M e d i u m Te r m - b e a t t h e This is where the challenge lies: benchmark in both one-year and Apart from the tenure, fund Going against the tide in the three-year periods, and were managers can strategise through market. \"When your decisions the best performers in their different kinds of bonds. In 2022, are not in line with the market, it respective categories, data from when the Reserve Bank of India creates stress. But with time you Morningstar shows. To give some numbers, the Short Term Fund Name Fund Return (%) AUM (`crore) Fund delivered 4.66 per cent and 6.35 per cent in the one-year and ICICI Pru Short Term Fund 1-year 3-year 15,528 three-year periods, respectively, 4.66 6.35 while the benchmark index delivered 3.75 per cent and 5.95 per cent (see Table). The three-year performance ICICI Pru Medium Term Bond Fund 4.17 6.66 6,255 shows that Banthia's mantra of Source: Morningstar India Data as on December 31, 2022 actively managing the funds paid dividends in the post-Covid-19 Deploying the right strategy at the right time can only happen if one has a robust framework to analyse the market situation, and fund managers can save themselves from falling prey to \"sentiments or attractions and distractions from the market\".

\"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, FEB-MARCH 2023 Interview This ICICI Pru's Rs 7,000-crore money manager explains why next 12 months will be better for stocks than FY23 Business Today | March 29, 2023 Anand Shah kept sentiment jittery on Dalal panies with a potential for long- ness and competent manage- Head - PMS & AIF Investments Street in the last one year. So, term growth. Through this ment may not always come ICICI Prudential Mutual Fund what strategy of yours helped framework, we aim to identify cheap. If the business has a moat to achieve robust returns in the strong companies with compe- and steady cash flow, we might Select portfolio management medium to long term? tent management that are trad- consider paying a reasonable schemes (PMS) run by ICICI ing at reasonable valuations. premium. But good business Prudential AMC delivered robust Anand Shah: In the past two and good management at any alpha to their high net-worth years, we were overweight Under the business filter, we aim price is not our approach. If the clients in the past 12-36 months. industrials, capital goods, to identify strong businesses valuation is not right, we are Data available with PMS AIF banking and manufacturing as a that have the potential to grow at ready to let go of some good World showed that ICICI theme. At the same time, we a healthy pace, wherein we businesses as well. Thus, we aim Prudential PIPE Strategy deli- were underweight IT, pharma- identify industries that can to buy good businesses run by vered 28.80 per cent annualised ceutical and FMCG. This app- potentially grow faster than the fairly competent management at return to investors in the past roach across our PMS portfolios GDP and companies that can acceptable valuations. three years till February 28, 2023, helped generate outperfor- potentially grow earnings faster whereas Contra, Largecap, Value mance over the benchmark in than competitors in those Business Today: Can you tell and Flexicap schemes also grew the medium to long term. industries. us more about your PMS at the rate of 25 per cent, 22.10 strategies? Which strategy of per cent, 21.50 per cent and 15.8 B u s i n e s s To d a y : I C I C I The second focus is to try and yours suits aggressive, per cent annually during the Prudential MF is the second identify companies with an conservative and risk-averse same period. biggest player in terms of enduring moat, or companies investors? assets under management. with a sustainable competitive On the other hand, the bench- How big is ICICI PMS as advantage. And, lastly, we prefer Anand Shah: Contra, PIPE and mark equity index BSE Sensex compared with the total AUM industries that are consolidating Flexicap are our top PMS delivered an annualised return of of the PMS industry? over those that are fragmenting. strategies. Contra as the name 15 per cent since February 2020. These steps are important suggests has a contrarian In an interaction with Business Anand Shah: Overall, in the because we look at investing approach to investing. Here, we Today, Anand Shah, Head-PMS alternate space, we manage from a 5-to-10-year perspective. invest in a business with high and AIF Investments, ICICI around Rs 12,000 crore. This If we do not like a business, entry barriers but is going Prudential AMC, explained what includes long-short AIF and we do not proceed further in through challenging times due to worked for PMS schemes and credit opportunities AIF on the evaluating its management and an unfavourable business cycle also shared his insights for the fixed-income side. On the long- valuation. or a special situation or due to financial year 2024. Edited only investment side, we are industry consolidation. excerpts: around Rs 7,000 crore, which is Once potential businesses have again a mix of AIF and PMS. We been identified and deemed When it comes to flexicap Business Today: A couple of have seen encouraging growth appealing, we aim to focus on strategy, the portfolio has a ‘core’ headwinds including rising in both the PMS and AIF space their management teams, who and ‘satellite’ element. The core interest rates, sustained out- over the past two years. have a solid track record in terms portfolio could be 60 per cent-70 flows by foreign institutional of corporate governance stan- per cent and is predominantly investors and the ongoing war Business Today: How do you dards, competency, and engage- targeted towards sectors which between Russia and Ukraine select stocks from the universe ment with stakeholders. If the are valued on an absolute and of listed companies? management does not pass relative basis. The satellite these filters, we do not go ahead. portfolio will be a blend of Anand Shah: We have an in- investment strategies that are house Business-Management- If we like business potential and aimed to be in line with the GARP Valuation (BMV) framework that management quality, the last (Growth at Reasonable Price) aims to identify resilient com- step is valuation. A good busi- philosophy. This bucket will be The PIPE strategy predominantly invests in mid and small cap companies which have the potential to grow meaningfully over the next 4-5 years and become large businesses.

\"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, FEB-MARCH 2023 used opportunistically to book Today, even if a recession were metals have been under goods, banks and auto ancillaries profit and increase weight of the to play out in the US, the Fed has pressure for the last one year, we with a large cap bias. In our PIPE core portfolio. On the other hand, significant room to help the believe the worst is behind and strategy portfolio, 52 per cent the PIPE strategy predominantly economy. Separately, any valuation-wise, this space is allocation is towards small caps invests in mid and small cap slowdown in the US will benefit fairly valued. and 44 per cent midcaps and the companies which have the India by way of lower commodity portfolio is overweight banks, potential to grow meaningfully prices and lower interest rates. Business Today: How do you transportations and metals. over the next 4-5 years and Having said that, we still believe see beaten-down IT stocks? Do become large businesses. markets will remain volatile and you think this is the right time Business Today: How many uncertain in the first half of FY24 to pick quality stocks from the stocks do you prefer to keep in An aggressive investor may before it stabilises, and thus one sector? a PMS portfolio? Why? consider contra and PIPE should use the volatility and strategy while a conservative invest in a staggered way over Anand Shah: While IT Anand Shah: We prefer to investor can consider flexicap the next six months. companies’ valuations have manage a 25-35 stock portfolio strategy. For risk-averse inves- corrected from the recent peak, of high-conviction ideas. tors, they may need to evaluate a Business Today: Which sectors the valuations are still above Multiple studies over the years hybrid or fixed-income product do you think may throw big long-term averages. We believe have shown that the benefits of or our ICICI Prudential PMS gainers and why? over the next 2-3 quarters we will diversification starts diminishing Multi-Manager Strategy which is have better visibility of growth once the number of companies a bouquet of equity and hybrid Anand Shah: Manufacturing as risks emerging out of recent in the portfolio starts crossing equity mutual Fund schemes. a theme looks attractive. This is weakness in the US economy 35-40 names. At the same time, a We select around 4 to 7 of our one space which has been under and individual company’s highly concentrated portfolio ICICI Prudential Mutual Fund pressure for over one decade commentary around the same. with very few companies too are schemes product suite and and despite the gains seen over Thus, we believe, that would be not healthy. these are handpicked based the past two years, there is still time to reevaluate our view on on our various internal research a lack of investor interest the IT underweight position we Business Today: Can you tell us on asset allocation models, in manufacturing and allied are running. more about yourself? sector allocation and valua- themes. As manufacturing tion frameworks. improves allied industries like Business Today: How investors Anand Shah: metals, auto ancillaries, can make money in this tepid Businessv Today: Coming to engineering goods, textile yarns, market? What is your advice? a) Your hobbies – I am an avid the domestic equity market, capital goods, industrial sportsperson and a health freak. how do you see the movement products, logistics and utilities Anand Shah: Irrespective of the At present, I regularly play of Sensex and Nifty going stand to gain. Another sector market conditions, there are two cricket, badminton and occa- ahead? which looks promising is things an investor should always sionally do gym workouts. banking, especially corporate be mindful of. First, invest with a Anand Shah: From the external banks. long-term horizon. If you are b) What works as a stress buster macro front, we believe the next investing in equity markets under for you? – A good workout 12 months will be better than the Owing to the developments of the current market condition, it session or a good game of last 12 months. This is because the past few years, the existing should be with a mindset of at cricket/badminton. we are just stepping out of a time book has been stress tested and least five years if not more. when external macros were thus banks had to provide Second, to keep short-term c) How much money do you challenging, there was a China significantly for the past NPAs. volatility under check, always manage at ICICI Pru PMS?- lockdown, fears of an energy Incrementally, we believe asset use STP as a route to invest. Around Rs 7,000 crore crisis leading to a slowdown in quality and thus credit costs for Europe and one of the fastest the corporate banks will be more Business Today: What are the d) Your age: 48 years rate hikes in US history. As a benign than last few years. On top holdings of ICICI PMS? result, we had significant dollar the contrary, we have seen How you have diversified e) How a day of money manager strengthening, leading to out- recoveries and we may see across the market cap? looks like? – The day starts with flows from all the emerging some more recoveries from their reading, followed by morning markets, including India. past NPAs due to resolution Anand Shah: In our contra meetings, followed by more under IBC or otherwise. portfolio, our largest allocation is reading and again more discu- From here, we are moving onto a towards large caps and sector- ssions around micro and macro. stage where China's growth will We believe banking can also be wise we are overweight metals, All of this acts as an input come back to an extent, energy one of the beneficiaries of the transportation and telecom. for a clear interpretation of the price in Europe has softened, revival in manufacturing and When it comes to flexicap economy and companies and and the fears of a Europe rece- manufactured goods exports. portfolio, we are overweight this cycle continues. ssion has abated significantly. Within manufacturing, while industrial products and capital As manufacturing improves allied industries like metals, auto ancillaries, engineering goods, textile yarns, capital goods, industrial products, logistics and utilities stand to gain.

\"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, FEB-MARCH 2023 Awards The Morningstar India Fund Awards 2023 ICICI Prudential AMC won three awards out of the seven that were performance on a sustained basis over the longer term. Apart from announced on 16th March 2023 at the Morningstar India Fund Awards this, there are critical qualitative checks to cover factors such as 2023 event held at Trident-BKC. While ICICI Prudential Bluechip Fund stability in the investment team, fund adherence to the investment and ICICI Prudential Short Term Fund won the awards for Best Large mandate etc. Cap Equity Fund and Best Short Duration Fund respectively, the fund house was also won the Morningstar Best Debt Fund House award. At the award ceremony, while announcing the award, it was highlighted how ICICI Prudential Bluechip Fund has benefited The Morningstar India Fund Awards 2023 recognize funds that have immensely from ICICI Prudential's distinctive research approach and added the most value for investors within the context of their relevant thoughtful decision making skills of its experienced investment peer group in 2022 and also takes into account 3-year and 5-year managers. performance. In their rigorous short-listing process, while calculating the quantitative scores, they assign 80% weightage to returns and ICICI Prudential Short Term Fund won special appreciation for being 20% to risk. Within the 80% return score, 30% is based on 1-year managed by a skilful and experienced investment manager and for its return percentile rank and 50% is based on 3-year and 5-year return ability to outperform its category across time frames with a strong percentile rank within the category. research based investment approach. While announcing the Morningstar Best Debt Fund House Award amidst cheers and loud To ensure consistency in performance, the fund needs to have applause, ICICI Prudential AMC was congratulated for having made a outperformed its category median, not only in the last year, but also in name for itself on the debt and credit side. They especially noted that at least three out of five calendar years. The weights are designed to ICICI Prudential's debt funds have delivered consistently across emphasise on the most recent year performance, but are also meant market cycles attributing it to the robust investment process. to favour those funds that have delivered risk-adjusted out-

\"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, FEB-MARCH 2023 TMF: Best way to lock in yields at the end of rate cycle Deccan Herald | March 26, 2023 There is a general consensus opportunity to lock in your benefit on the tax front as well, Chintan Haria that we may be heading towards returns at the present high rate of when compared to traditional Head - Product Development the end of a rate hike cycle. With interest. This is possible because investment avenues, because the economic cycle advancing TMFs invest in bonds with the TMFs are taxed at 20% after & Strategy from slowdown to growth, it is intention of holding them till indexation, as long as your ICICI Prudential Mutual Fund very likely that the Reserve Bank maturity. So, when you invest in a investment has a tenure which is of India would pause before 10-year TMF, you place your greater than 3 years. Further, investors will have a fair idea of moving on to a rate cut phase. As investment in a scheme which TMFs only invest in sovereign or their likely returns. This tends to investors, what should you do to invests in bonds with 10-year quasi- sovereign bonds, hence be helpful for those who are benefit from this scenario? maturity, which will continue to the credit risk on these planning to tag this investment enjoy the prevailing coupon rate, investment is negligible. with a specific goal. Target maturity fund - an even when the rates turn lower optimal solution down the years. Should you invest in a TMF? Now that you know why this is an opportune time to make TMFs a One of the easiest ways to lock- The structure of these funds An investment in TMF, in the part of your portfolio, find a in investments at the prevailing works on decreasing residual current scenario, works out on scheme which is most aligned higher yields is through a target maturity, which means that, each three fronts: locks in the yield with your investment horizon maturity fund (TMF). TMFs are passing year, the maturity of that can be received on maturity, and lock in the high returns. passively managed debt mutual the underlying bonds keeps brings down your duration risk funds which replicate the reducing. In this way, the and offers you the indexation composition of the underlying duration risk keeps going down, benefit as long as your target debt index and their maturities. while the maturity date remains maturity is beyond three years. They can be in the form of an ETF the same, making the returns Further, the expense ratio or an index fund. The portfolio from the offering predictable. For associated is comparatively typically consists of government example, an investment in a TMF lower, given that TMFs follow a securities, PSU bonds, corporate of ICICI Prudential PSU Bond passive strategy of buy and hold. bonds and state development Plus SDL 40:60 Index Fund- Given these are passively loans. September 2027, with a leftover managed, you can view the index maturity period of 4 years, will constituents and know where As the name suggests, TMFs typically have a lower duration your money is being invested. have a fixed maturity date and, if risk. your investment horizon aligns Since a TMF is designed to with this date, then you have the In addition to this, you will mature at a specific date, One of the easiest ways to lock-in investments at the prevailing higher yields is through a target maturity fund (TMF). TMFs are passively managed debt mutual funds which replicate the composition of the underlying debt index and their maturities.

\"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, FEB-MARCH 2023 Channel Partners Distributor Insights How to plan effectively for long-term goals Outlook Business | February 2023 Ajay Menon & Pankaj So, what needs to be done? goals, it is important to under- create long-term wealth. Small Kumar Srivastava stand one’s risk taking ability or but regular investments through Understanding the Present the risk profile. Basically, it is the SIP in the long-term tremen- Partner risk you are capable of taking to dously helps investors average Ethical Financial Services The first step is to understand achieve a goal. One’s risk profile out their costs and are able to your present financial situation. is primarily based on the age and tide over the market volatility. The raging popularity of SIPs You need to impartially assess investment horizon. Any invest- (systematic investment plan) for your monthly income and ment decision should be made We at Ethical Financial Services investing in mutual funds can be expenditure. Once you know only after understanding one’s strongly believe that investors seen from the fact that over Rs this, identify your financial goals. risk tolerance as various asset should invest as per his or her 13,000 crore are ploughed via This helps in knowing the total classes have their distinct inhe- financial goals. Though SIPs are this route every month. While corpus needed for various goals rent underlying risks. the best way to attain any SIPs are great means of investing in different time horizons. financial goal, use of top-up in mutual funds, especially One investment option which feature in SIPs are a great way to equity schemes, they can be Create an Emergency Fund can be considered by individuals achieve the desired goals. A made even more potent when across the risk profile spectrum Step-Up in SIPs ensures directed towards specifically One may cut unnecessary is Mutual Funds. These are investments are in proportion planned financial goals. expenses to increase savings. schemes which aim to diversify with the increasing cash flows For instance, nowadays several the risk by spreading your with time. Financial planning is immensely of the subscriptions are auto- investments. Mutual Funds can important when it comes to renewed. There could be a high be broadly classified into equity, Planning for Retirement fulfilling long-term goals succe- probability that one may not be debt and hybrid funds. You may ssfully. It is an art which involves using those platforms any pick the most suitable ones as Being a serious financial goal, it a pre-calculation task, based on longer. Thus, every penny saved per your risk tolerance and is important to estimate the distinct parameters, and thereby can be re-directed towards investment horizon. monthly retirement expenses. taking financial actions accor- creating an emergency fund. One may use online retirement dingly. It’s a process which For instance, debt funds are calculators for the same. While effectively takes into consi- An emergency fund should be suitable for a time frame of up to doing so, one should also factor deration various aspects of life adequate enough to take care of three years. If the time horizon in the increased medical expen- while determining what needs to your expenses for 6-12 months, stretches up to 7 years, hybrid or ses as health insurance will not be done to achieve various goals. in case you face an unexpected equity schemes suit the most. cover diagnostics and medicine financial emergency like a job Further, for goals which are at costs. Thus, one can calculate For instance, an individual in his loss. It offers you a buffer and least 7 years away or more, one the monthly SIP amount to or her mid-twenties may not take helps maintain your standard of can consider equity mutual take care of one’s retired life. retirement planning seriously as living. One may consider parking funds. However, if you are Further, investment features like retirement is decades away. This the emergency fund in a fixed unsure, it is best to seek the help Freedom SIP, which offer a is quite an erroneous approach. deposit, liquid fund or a short- of a financial advisor. combination of SIP and Syste- A delay in retirement planning, at term debt fund. This ensures the matic Withdrawal Plan (SWP), times, does damages which are investment not only is readily Investing for your Goals can well be chosen to derive a beyond repair. Time flies and the accessible, but also grows with stream of steady income on a menace of creeping inflation time. Basically there are two modes of monthly basis. will dwarf the value of savings investing in mutual funds - Lump amid a lack of early investment Investing in your goals sum and Systematic Monthly To conclude, financial planning planning. Investment. Regular monthly should be an indispensable part Now, it is time to plan for your investment, known as Syste- of one’s life. The earlier one plans financial goals. But before matic Investment Plan (SIP), the better will be the outcome. creating a portfolio for various should be the preferred way to Financial planning should be an indispensable part of one’s life. The earlier one plans the better will be the outcome.

\"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 9TARAKKI TIMES, FEB-MARCH 2023 Distributor Insights Where can investors find value in fixed income? Outlook Money | March 2023 Investors can consider short-duration schemes such as ultra-short and short-term funds. For parking funds, one may consider a liquid fund. Abhimanyu Sharma sustained demand for fixed consider short duration scheme management, they have the income securities. such as ultra-short and short potential to offer better returns at Founder term funds. For parking fund, one various points of the interest rate Swarn Wealth The Indian Perspective may consider a liquid fund. cycle. But an investor has to be mindful that they must stay As global investors deal with The Reserve Bank of India’s Investors can also consider invested for at least three years continued volatility amid nega- Monetary Policy Commission taking exposure to dynamic and preferably more if investing tive cues, including sticky infla- has maintained a hawk-like duration schemes. Investing in in this category to make gains of tion and rising interest rates, the stance and attempted to bring this category fund will make it the investment calls taken. equity market has been witness- down inflation via consistent rate easier for you to navigate ing severe volatility. Capital is hikes, with the repo rate through uncertain times with Savvy investors can also fleeing from the risky asset to currently at 6.5%. While the ease and will help you to benefit consider investing in categories safer shores such as fixed market had little to cheer, given from volatility as well. The such as the credit risk as yields income, in the search of stable the huge losses sustained by the scheme will invest across on bonds rated AA and below yet robust returns and the debt benchmark indices, the slowing durations in accordance with the have remained high or have market has been delivering on pace of rate hikes has offered interest rate scenario, in order to increased due to the hike in repo these demands. As an investor, investors slight respite. Consu- maximise the investment rate. The increased yield offers a how should you evaluate this mer price index-based inflation returns. Thus, they aim to benefit good opportunity to invest in evolving paradigm and where eased to 5.72% on-year in from interest rate volatility. Also, credit spread assets, as one can should you park your corpus? December 2022, compared to this category funds have the benefit from capital appreciation 5.88% in November 2022 and flexibility to invest in a variety of and high accruals. Global Macro Environment the rupee rose 1% to settle at Rs short-term and long-term debt 81.92 on January 31, 2023 and money market instruments, To conclude, fixed income yields The US Federal Reserve’s compared with Rs 82.73 on including corporate bonds and are now above inflation rate, chosen measure of inflation has December 30, 2022, indicating government securities. Further, delivering a positive real rate of dropped from almost 7% in June India’s strength on a global scale. these funds are not constrained return making it a good year for to 5% in December which, while by limitations on the duration or debt investment. being well above the central Debt Market Outlook maturities of the securities they bank’s target of 2%, is still a invest in. Due to the dynamic strong indicator of disinflation. Given that the RBI is now content This has prompted the Fed, a with inflation hovering around Investors can also consider frontrunner in global rate hikes, 6%, unlike the previous target of taking exposure to to slow its aggressive pace and 4%, the Indian central bank is not dynamic duration schemes temper its campaign against likely to reduce rates any time that make it easier to high inflation. However, market soon. With the economic cycle navigate through uncertain players still expect the central advancing from slowdown to times and help you benefit bank to continue its battle growth, and no sight of rate cuts from volatility. against rising prices, till the in the near term, credit spreads number is near the target. are expected to expand further, Meanwhile, crude oil prices too making accruals a dominant have been hovering around the source of returns in debt $85 per barrel. These triggers schemes. Bond yields have have led to sharp volatility in continued to rise on account of global equities, as well as a the ongoing tighter liquidity conditions and strong credit growth. Currently, the one- to two-year portion of the curve, which is the shorter end of the curve appears to be fairly priced. This means that investors adding duration through the long end of the curve may not see the desirable results. In such an environment, investors can

\"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, FEB-MARCH 2023 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Prasad Dharmadhikari Kolhapur, Mutual Fund Distributor Prasad Dharmadhikari, 46, a Kolhapur-based MFD and founder of Dhanvardhan Weealth Private Ltd, has an AUM of ` 160 crore with a SIP book of ` 90 lakhs of 3000 clients - mostly retail. Prasad started his career in 1998 in the insurance sector and later in 2007 entered the mutual fund industry. Hailing from a very humble family background, Prasad was entrusted with family responsibilities from an early age. But all throughout he harboured an inclination towards having a business to call his own. As he grew older, the realisation set in that customers were not getting what they wanted from insurance products. \"I was exploring various financial products and wanted a good investment avenue. My first impression about mutual fund was that it can fulfil every financial need of a customer which was the reason I was attracted to it,\" recalls Prasad. But he admits that when he started selling mutual funds, he did not foresee it as a business avenue. As his mutual fund distribution took off, his knowledge and understanding improved. It was a clear, transparent and flexible product with no hidden charges, he says. \"I was able to decide whether this product should be given to a customer or not; it felt good,\" explains Prasad. Slowly and steadily, he grew stronger as his understanding about mutual funds improved. \"I had a strong feeling that what I was doing was good,\" says Prasad. However, he faced several challenges along the way. Lack of customer trust was a major hiccup. \"In the initial days, no way was writing big cheques. So, I concentrated on SIP which eventually helped me grow,\" reminisces Prasad. This was not much of a bother as Prasad knew that with time and continuous client service will help build and sustain trust. \"Even today when customers give me money for investment, I am always doubtful about how long the money will remain invested,\" he chuckles. Having complete faith in SIP, Prasad believes that money which comes little by little but regularly is the one which stays longer which is also the right way of investment too. Things were going smoothly for Prasad for a year-and-a-half until the market lost ground in 2008. Those were extremely challenging times for him. Since he did not have a lot of assets then, this turbulent period became a training time for Prasad. The crisis helped him understand the importance of asset allocation, educating clients and creating informed customers. \"Whatever I am today is all because of those tough learnings from 2008 to 2013. I was lucky to go through that phase at the beginning of my career in mutual fund as I matured faster,\" he elaborates. As the market was stabilising in 2009, a major regulatory change rocked the mutual fund distribution ecosystem in the form of entry load ban. \"Too many things were happening in the industry then. Since I was new in the sector, abolition of entry load did not bother me much,\" Prasad explains. Irrespective of the market movement, he pressed on with selling SIPs. Despite all the changes in the mutual fund industry, Prasad was convinced that mutual fund is an optimal investment vehicle for creating long term wealth. However, in 2018, when the upfront commission ban was implemented, it turned out to be a bit difficult for Prasad. But his persistence continued. \"It was tough but there was no question of leaving the mutual fund business since I had consciously chosen this profession,\" he asserts. His determination paid off well. Two years later, fall in markets during 2020 posed a major challenge to Prasad. Keeping up with SIPs was a challenge for several investors, he says. The phase demanded tremendous client handholding which Prasad did. \"I managed to convince investors that if they could stay for two more years, they would make money despite the correction,\" he says with confidence. There was no doubt that learnings from the 2008 crisis came in handy when it came to helping investors navigate through the Covid crisis. Outlining his success mantra, Prasad observes that apart from passion, sustenance of passion despite challenges is the key. \"There is nothing in this business apart from gaining investor trust, without which you can't survive for long,\" he signs off.

\"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, FEB-MARCH 2023 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Pratikkumar Ashokbhai Shah Vapi, Mutual Fund Distributor Pratikkumar Shah, 32, a Vapi-based MFD has investors' assets worth ` 450 crore. He serves 4000 families - mostly retail and HNIs; and commands an SIP book of ` 1.7 crore. His father was into financial distribution since 1984, so the platform was almost ready for him. However, the mutual funds segment was a very insignificant part of the business then. When Shah joined the family's distribution business in 2008, the mutual fund asset base of the business then was a mere ` 11 crore. He was clear from a very young age that for wealth creation there cannot be a better product than mutual fund. \"I was very bullish that my clients will be highly benefit with mutual funds and hence began my journey with a focus on mutual funds,\" he says. Shah considers his father as his Guru as the latter helped him learn about financial distribution quite early in life. But he, 21-year-old then, faced the brunt at the very beginning. \"Initial challenge was people's resistance to invest on the back of the big market crash of 2008. Forget fresh investments; existing SIPs were getting closed as there was panic all around,\" reminisces Shah of his early years. He realised that no one had seen such a deep crisis and there was an acute shortage of awareness about equity investing among investors. \"I concentrated on educating clients as to why mutual funds were the best place to be in to create wealth,\" he explains. Though it was a time consuming work, the continuous awareness exercise started bearing fruits. Shah began to see traction as consumers' confidence in him and mutual funds increased. \"Initially it was really a very challenging and painful task, probably because of the 2008 crisis,\" says Shah. His father had told him that challenges would remain in the business and that they need to be accepted and adapted to without losing focus on MF business. Shah, who always had his family support, was barely a year into the mutual fund business when entry load abolition came into being in 2009. He could see the writing on the wall that trail-driven business is the future. If sustained well with volumes, the future will be attractive. \"We wasted no time and started working on references and concentrated efforts on increasing our client base,\" says Shah, who considers himself fortunate to see the challenging times right at the start of his journey. Direct schemes caused some worries, but the experience garnered thus far made him recognise that clients' need personal touch and consistent service. \"With direct schemes in, we did not deviate from our customer-centric approach,\" explains Shah. He understands that mutual fund business is long-term and one should not go for quick benefits by selling inappropriate schemes to customers. \"That's not ethical and the business benefit thus generated, is temporary which may derail the long-term relationship journey,\" Shah elaborates. By 2016, he had touched an AUM of ` 100 crore. His commitment for mutual funds did not dither despite upfront ban in 2018. His father reminded him that accepting challenges and finding suitable solution is a part of the journey. \"I did not lose hope and continued my focus on my clients. I can't afford a vacuum between me and my clients as it may lead to losing your customers,\" says Shah for whom making and sustaining relationship is the key for growth in mutual fund business. Tough phase during Covid in 2020 pushed his AUM down to ` 170 crore from ` 215 crore. Shah admits he panicked a bit but his 2008 crisis experience came in handy. He was 'better prepared to handle similar situations and help investors navigate through crisis times'. During lockdown, Shah substantially increased his engagement with clients and encouraged investors to do additional purchases as markets cracked. \"Our approach ensured that clients do not panic and owing to this experience their confidence and trust in me strengthened manifold,\" says a confident Shah. He says his success mantra is very basic. \"Be in the mutual fund business for the long-term with unshakable commitment and discipline. The distribution business scope is massive. Ethics should not be compromised with, else one would lose out on long-term benefits with short-term temporary gains,\" he observes, providing a gist of his success story.

\"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, FEB-MARCH 2023 Fund Review List of ICICI Prudential Funds in Star Track Mutual Fund HBL | March 2023 Scheme Name BL Rating Trailling Returns (%) 10 Year CAGR 1 Year CAGR 3 Year CAGR 5 Year CAGR 14.8 14.8 ICICI Prudential Bluechip Fund 2.2 31.5 11.6 15.3 ICICI Prudential Large & Mid Cap Fund 4.0 37.4 12.7 17.9 ICICI Prudential Multicap Fund 1.4 32.6 10.7 16.6 ICICI Prudential Midcap Fund -2.9 36.9 9.1 13.9 ICICI Prudential Smallcap Fund 2.9 45.5 13.5 17.9 ICICI Prudential Focused Equity Fund 3.4 32.4 12.6 ICICI Prudential Value Discovery Fund 5.4 39.1 14.3 15.0 ICICI Prudential Long Term Equity Fund -3.4 30.2 10.5 - (Tax Saving) 14.5 15.5 ICICI Prudential Dividend Yield Equity Fund 4.9 38.7 10.9 15.7 ICICI Prudential FMCG Fund 20.1 ICICI Prudential Infrastructure Fund 16.7 24.4 12.1 16.2 ICICI Prudential Banking & Financial Services 12.4 ICICI Prudential Technology Fund 16.5 48.1 14.3 10.0 ICICI Prudential Equity & Debt Fund 13.1 ICICI Prudential Balanced Advantage Fund 3.9 32.1 8.2 ICICI Prudential Regular Savings Fund - ICICI Prudential Nifty Next 50 Index Fund -17.7 44.7 21.1 - ICICI Prudential Nifty Private Bank ETF Fund - ICICI Prudential Midcap Select ETF Fund 3.7 32.7 13.7 - ICICI Prudential Nifty 100 Low Vol 30 ETF Fund - ICICI Prudential Alpha Low Vol 30 ETF Fund 5.6 21.8 9.5 - ICICI Prudential Silver ETF Fund 15.3 ICICI Prudential Global Stable Equity Fund (FOF) 4.1 10.8 8.0 12.8 ICICI Prudential US Bluechip Equity Fund 1 Year CAGR ICICI Prudential Child Care Fund (Gift Plan) -11.1 22.9 4.9 5.7 5.2 ICICI Prudential Liquid Fund 10.0 31.6 - 5 Year CAGR ICICI Prudential Equity-Arbitrage Fund 6.1 -12.9 28.0 5.1 6.5 ICICI Prudential Ultra Short Term Fund 6.1 ICICI Prudential Savings Fund 1.7 26.4 11.5 6.9 ICICI Prudential Money Market Fund 6.8 ICICI Prudential Short Term Fund -0.8 - - 6.6 ICICI Prudential Medium Term Bond Fund 6.1 ICICI Prudential Bond Fund 11.1 - - 7.3 ICICI Prudential Long Term Bond Fund 7.0 ICICI Prudential All Seasons Bond Fund 6.6 17.3 10.5 7.3 ICICI Prudential Corporate Bond Fund 6.6 ICICI Prudential Credit Risk Fund 6.0 20.2 16.3 7.9 ICICI Prudential Banking & PSU Debt Fund 7.3 ICICI Prudential Constant Maturity Gilt Fund -0.2 22.2 7.8 6.4 ICICI Prudential Gilt Fund ICICI Prudential Floating Interest Fund 1 Month Absolute 3 Month Absolute 6 Month Absolute 8.1 6.9 6.6 7.8 7.0 6.4 1 Year CAGR 2 Year CAGR 3 Year CAGR 5.4 4.7 5.1 5.7 4.9 5.7 5.7 4.7 5.0 6.0 5.0 6.4 5.4 5.2 6.4 5.5 4.1 5.5 4.7 2.8 3.9 6.2 5.1 6.6 5.9 5.0 6.4 5.4 6.0 6.9 5.7 5.1 6.1 4.7 3.9 5.5 6.3 4.9 6.3 5.7 4.8 5.9 Source: NAV India; NAV for the growth option as on 06-04-2022. Past performance may or may not sustain in the future.

\"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, FEB-MARCH 2023 mint List of ICICI Prudential Funds in Mint 20BEST FUNDS Mint | March 2023 HYBRID 3-year return (%) 5-year return (%) Corpus (Rs cr) BALANCED ADVANTAGE ICICI Prudential Balanced Advantage Fund 11.73 9.54 44,513 DEBT Corpus (Rs cr) DCREBEDT-IOTRRIIESNKTED 1-year return (%)* 3-year return (%) ICICI Prudential Credit Risk Fund 7,741 4.55 6.43 *Absolute Returns ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | March 2023 FUND* Value Research Returns (%) Fund Rating 6-month 1-year 3-month 3-year 5-year EQUITY: LARGE CAP -1.75 3.17 1.53 31.46 11.64 ICICI Prudential Bluechip Fund -2.44 11.76 ICICI Prudential Nifty 50 Index Fund -1.11 1.65 -1.51 30.01 12.87 ICICI Prudential S&P BSE Sensex Index Fund -4.54 2.90 0.04 29.86 - EQUITY: FLEXI CAP -2.31 12.51 ICICI Prudential Retirement Fund -1.23 -2.94 -4.49 33.15 -0.39 2.75 2.51 32.33 14.30 ICICI Prudential Focused Equity Fund 0.27 13.69 EQUITY: VALUE ORIENTED 1.65 5.80 5.36 39.05 7.95 ICICI Prudential Value Discovery Fund 1.70 6.73 HYBRID: AGGRESSIVE (EQUITY ORIENTED) 1.76 3.70 3.79 32.62 6.84 ICICI Prudential Equity & Debt Fund 1.73 7.21 HYBRID: CONSERVATIVE (DEBT ORIENTED) 1.98 3.93 10.77 6.94 ICICI Prudential Regular Savings Fund DEBT: MEDIUM-TERM 3.33 5.21 6.36 ICICI Prudential Medium Term Bond Fund DEBT: SHORT-TERM 3.35 5.83 6.30 ICICI Prudential Short Term Fund DEBT: DYNAMIC BOND 3.42 5.99 6.51 ICICI Prudential All Seasons Bond Fund DEBT: CORPORATE BOND 3.29 5.73 6.31 ICICI Prudential Corporate Bond Fund *Expense as on before 31 March 2023. 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.