Tarakki Times English September-October 2021

\"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 | SEPTEMBER-OCTOBER 2021 | PAGES 12 Pg. 2 Should learn from 1999, 2007 experiences, be careful when Floating rate funds can markets are at all-time high cushion interest rate volatility CNBC-TV18 | September 28, 2021 Business Standard | October 17, 2021 Sankaran Naren can be very aggressive equity. but that investors have to ED & CIO And this is our learning,” Naren recognize that they should do Rahul Goswami ICICI Prudential Mutual Fund said in an interview to CNBC- asset allocation from here and TV18. not recognize that they should CIO, Fixed Income S Naren, ED & CIO of ICICI do only equities from here,” said Prudential AMC, on Tuesday, said According to him, it’s difficult to Naren. Pg. 3 that investors need to be careful predict the ultimate top of this when markets are at an all-time bull market. “We are not saying that the Don’t be greedy; high. markets are going to go down dig deep and bet on from 60,000 or anything like that the healing economy “We have had bad experiences in “From my learnings, I believe that because we also don't know 2007, 1999; so we have to learn it is impossible to predict the that,” he said. Economic Times | September 22, 2021 from those bad experiences that ultimate top or predict the investors, at an all-time high, ultimate bottom and no one Anand Shah have to be more careful. The knows the ultimate top; the biggest mistakes do not happen ultimate top maybe 80,000, Head - PMS & AIF Investments when the markets are low; there maybe 70,000, maybe 60,000 Pg. 5 S Naren's View Special Situation Funds gaining • Long-term view on equity remains positive • Valuations have moved up; Prudent to ground exercise caution • Medium-term view cautious due to Hindu BusinessLine | October 20, 2021 valuations moving higher • Book partial profits if you are Overweight equities Good place to park rally gains • Broad market valuations are not cheap • Overweight investors should move partial Economic Times | October 07, 2021 • Few pockets across sectors are still profits to hybrid schemes reasonably valued Pg. 6 • Investors with balanced exposure should • Positive on oil & gas, construction, banks, remain invested Decoding ICICI Prudential Alpha autos, pharma, PSUs Low Vol 30 ETF FoF • Balanced investors should continue investing • Continue to monitor US 10-year treasury yield in hybrid schemes The Money Show | September 16, 2021 • Keeping an eye on US Fed roadmap for • Balanced investors should continue investing Distributor Insights withdrawal of stimulus in fund of fund schemes Pg. 7 • Sentiment remains high; Is euphoric in The ABC of Investing certain areas Outlook Money | August 2021 Pg. 8 Take a shot at target maturity funds The Hindu | October 24, 2021 Tarakki Corner Pg. 9 Chetan Upadhyay Mutual Fund Distributor Fund Review Pg. 10 List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 11 List of ICICI Prudential Funds in Star Track Mutual Fund Pg. 12 First Edition Striving Success Stories

\"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, SEPTEMBER-OCTOBER 2021 Interview Floating rate funds can cushion interest rate volatility Business Standard | October 17, 2021 Rahul Goswami repo (VRRR) with an outlining job in accumulating foreign What are the key risks facing CIO, Fixed Income option for 28-day VRRRs. currency worth $700 billion the debt market today? ICICI Prudential Mutual Fund (adjusting for forwards position) The RBI also mentioned that it and creating a good safety The key risk to the debt market is Rising commodity and energy would move away from passive cushion. how the commodity and energy prices are the biggest risk in the liquidity management, which prices behave in the medium medium term, says Rahul means that absorption of term Given that Indian macros are in term. As India is a large importer Goswami, Chief Investment banking liquidity may happen great shape, we believe that of crude oil, any large spike there Officer (C10)-fixed income at based on determined auctions. India will largely remain insulated can change the trade balance ICICI Prudential Mutual Fund. In We believe the next step after from steps like tapering of bond and current account balance, an interview with Chirag Madia, the normalisation of liquidity will purchases by the US Fed. We apart from the impact on Goswami says the case for be to narrow the policy rate continue to remain watchful of inflation. Another risk is the normalisation of monetary corridor closer to the pre- the trade balance and the current upward pressure on interest conditions is starting to pick up pandemic level, all of which is account data. rates as it will impact the pace, and the next step will be to likely to pan out over the next two profitability of companies that narrow the policy rate corridor to three quarters. What strategy should investors are saddled with debt and also closer to the pre-pandemic level, adopt at this point? delay the pace of recovery, all of which is likely to pan out What are the key reasons for especially of those companies over the next two to three the recent spike in the yields? We believe that we are at the that are just coming off from the quarters. Edited excerpts: start of the interest rate-rise pandemic impact. Yields have been largely tracking cycle and in the current phase What's your view on the debt global developments which where growth and inflation Do you foresee any kind of markets, given the Reserve include the oil prices rising to $85 dynamics are evolving, a rela- downgrade of defaults from Bank of India (RBI) has embar- a barrel and US yields moving to tively nimble and active duration Indian Inc? If yes, in which ked on liquidity normalisation? 1.65 per cent levels. As a result, management strategy is recom- sector? yields had started hardening mended as it may benefit from The case for normalisation of even before the monetary policy high-term premium (difference in We are positive on the debt monetary conditions is starting committee (MPC) meeting. the yield between the long and cycle, given that leverage is very to pick up pace with the number the short ends of the curve) low and that most of the of daily Covid cases declining, an On the domestic front, the RBI in and to manage portfolios from corporations have deleveraged. aggressive vaccination rate, its latest MPC meeting has expected high-interest rate Hence, we like the corporate economic activity leading to communicated its intention of sensitivity. sector from the overall cycle growth picking up, the US Fed withdrawing from the G-SAP perspective. Currently, the risk of hinting at a taper, and higher programme, even as it continues It may be an opportune time to defaults/ downgrades has commodity prices. to support the government invest in a floating rate fund decreased significantly as the borrowing programme, inclu- that can cushion interest rate pandemic induced restrictions The policy normalisation process ding steps like open market volatility. An investor can also have been relaxed. began in earnest with the RBI not operations (OMO) or operation consider investing in an all committing further to G-sec twist. All these factors have led seasons bond fund, wherein the According to a recent Crisil Acquisition Programme (G-SAP) to a spike in yields. Due to the fund manager has the flexibility analysis, the credit ratio (ratio of operations and taking a stagg- RBI's policy normalisation to invest across the curve and upgrades to downgrades in ered approach of increasing the process, we believe the short- make the most of the evolving credit ratings) - which is an quantum of variable rate reverse term rates may move higher, market conditions. indicator of the financial health of leading to the easing of the corporations - registered an steepness of the yield curve. There is room for accrual stra- increase to 2.96 between April tegy to play out, as well since and September of this financial Do you think there will be an better spread premium remains year. It was 0.54 in the corres- impact of US tapering on the prevalent between spread ponding period last year, thereby Indian bond markets? assets and AAA and money indicating an improvement in the market instruments. A savvy credit profile of the issuers. The Indian government and the investor can consider investing RBI have done a commendable in a credit-risk fund, as well. We believe that India will largely remain insulated from steps like tapering of bond purchases by the US Fed.

\"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, SEPTEMBER-OCTOBER 2021 Don’t be greedy; dig deep and bet on the healing economy Economic Times | September 22, 2021 We are finding that there is a coming through. In that part of seeing pockets where we can Anand Shah room to go a little deeper into the the market, it looks like people invest in the market. The Head - PMS & AIF Investments economy, deeper into the are getting a little greedy or there manufacturing sector has been markets and see where the is some sort of euphoric valua- struggling for most of the last ICICI Prudential Mutual Fund valuations are still reasonable tions in the consumer facing or decade. They had problems of and growth prospects are services businesses and the tech high debt or of deflation being facturing and a little bit more improving. That is what we have companies that we are looking exported out of China where infra in the portfolio than been doing in our portfolios also, at. Having said that, this is also an overcapacities left most manu- otherwise we would have had. says Anand Shah, Head, PMS opportunity to do a little bit facturers with very low profits Also within services, we are and AIF Investments, ICICI of bottom-up stock picking and lower return on equities. So, looking at services which are Prudential AMC. because as the economy is that sector has almost got off the more dependent on recovery like healing, pockets of the economy radar of the investors. Infras- banking. Within banking, we are The outperformance of the will emerge and get better. tructure is another space, where looking at more corporate Indian markets is extraordinary. the government has been con- oriented banks which are What is leading to this outper- We are coming out of very tinuously spending and private dependent on recovery and formance? Are markets now difficult times for the economy. sector capex was almost absent profitability of corporates. getting slightly carried away Not only the last two years, but in the last 10 years. because of complacency and or even in the last four-five years, You are talking about the do you think the outper- we had one shock after another Today, manufacturing is doing comeback of the capex cycle formance is here to stay? which set back the economy. very well, profitability is picking after almost a lost decade. Are There is an opportunity to do up and on top of it, they have you doing it indirectly whether There is a saying that either you some stock picking here. announced capacity expansions. in manufacturing by investing can get good news or good price So, we are seeing some green in steel companies or indirectly and very clearly we have seen Most of the mutual funds shoots as far as private sector playing real estate surge? both sides in a matter of 18 normally run a mandate that by capex is concerned. months. In March 2020, we did and large they want to be Some of the manufacturing is not have an iota of good news. invested; the cash levels may Construction, real estate are also benefiting from global We actually had the bluest of be 5-6%. In this market, how always a big driver of jobs and a macros and to that extent our blue chips available at a are you ensuring that you avoid big driver of the economy, given large weightages are in the reasonable price but a lot of the greed and yet are able to that a lot of indirect employment sectors which are benefiting market was available cheap. generate positive returns? comes from construction. Real from global macros as well as Today the economy is healing. estate is picking up, especially local macros and steel is part of Things are getting better. We take equity and debt calls the residential real estate in it. while allocating assets. At this pockets of the market as jobs Some of the sectors actually point of time, we would have have come back. IT salaries are Textiles is another area where we surprised us significantly in lower equity and higher fixed going up. are benefitting from India’s terms of profitability and cash income. In the equity funds, the competitiveness while China is flows even in the Covid year and mandate is to stay invested We are finding that there is a withdrawing from the exports net-net, the impact of the because the asset allocation is room to go a little deeper into the market, particularly in steel. We pandemic on the strong busi- done by investors or the advisor economy, deeper into the nesses was not as much and to of the investors. When investors markets and see where the that extent, the market is going give money into our equity funds, valuations are still reasonable to the other side of the spectrum the mandate for us is to stay and growth prospects are which is definitely expensive. invested. Secondly, all is not improving. That is what we have gloom and doom. been doing in our portfolios also. We are also worried about the pricings at which IPOs are To be very honest, today we are Today we have more manu- Today, manufacturing is doing very well, profitability is picking up and on top of it, they have announced capacity expansions. So, we are seeing some green shoots as far as private sector capex is concerned.

\"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, SEPTEMBER-OCTOBER 2021 Interview do like residential real estate and is not attractive at this point of deploy at this point of time, given also demonetisation, GST that is part of the portfolio. time. they still would have another implementation led disruption or three to four to five years of the NBFC crisis led consumption We are also very keenly looking Is there any pocket where you negative free cash flows and slowdown - almost four to five at private sector capex drivers. worry about the valuations to a more equity is in the offing. years of disruption and slow- We have more consumables in higher degree besides down. Given that a huge fiscal the private sector and some of consumer stocks? Is there any So that is another space where stimulus has come through last the capital goods play in our pocket where you feel there is a again we are not fully comfor- year and this year we feel fairly portfolio. bubble in the making? table yet but we are still confident that the economy is evaluating that sector. recovering well with the help of So yes, it is fairly early. It is too More than sectors, I find the global China plus one strategy early to call for a complete revival prices at which the IPOs are Have you completely missed and with PLI related manu- for private sector capex. There coming in a little worrying. To be out on the new age tech IPOs facturing capex coming back, the are still green shoots and we are very honest, even in the IPOs in which have caught the market growth can be sustained for a watching that space. There are the old economy sector, if I frenzy? while. valuation issues but it is in the compare the listed space with pocket, it is in the B2C consumer the unlisted, we are finding that I would not say missed out. We When there is good news, facing businesses. Part of the at times the valuations are far have avoided and as I said, the maybe the valuations are a services industries consist of more expensive in IPOs which key philosophy that we follow is challenge, one needs to look high return on equity, low capital otherwise should have been at a identifying strong businesses through them. Valuation problem intensive businesses. This has discount, give that the company which have a lot of moat, is a lesser problem to have than a been the mantra in the market for does not have a history and a sustainable and competitive business problem. I think the the last decade, where if a track record in the listed space. I advantage and a very good path economy of me and my team is company has a high return on think that is a little aberration. of growth. looking good, businesses can do equity and low capital intensity, well, the environment is right; people have given it 50-60-70-80 So one part of the market that we So we are continuously looking within that, it’s the job of me and PEs. Some of them are not have been looking through a fine for opportunities in growth and my team to identify stocks that making money and still they are lens and have avoided most are high moat businesses. We are are reasonably priced. getting very high valuations. IPOs. That is something which fully invested. We have been retail investors should be participating in these markets So, while there is an issue of But these are the so-called old valuations in pocket of the economy companies but they More than sectors, I find the markets, we have been evalua- are coming out of a lost decade prices at which the IPOs are ting or avoiding the cyclicals. I as China reduces its focus on coming in a little worrying call it high moat manufacturing manufacturing and it reduces the and that includes in the businesses. Even within manu- deflation it has been exporting IPOs in the old economy facturing, you can have com- into manufacturing industry sectors as well. panies with very strong fran- globally. chises and strong sustainable conscious of before they look at very well. This is one area competitive advantage. When you talk about wage it as a flip opportunity. because we are not able to inflation, how will the IT understand the valuations at this We are looking at steel and sector’s fantastic growth and Second is new tech companies. point of time we have not textiles being two sectors where consumption be reflected in the We keep on talking about the participated consciously. India has a right to win and we portfolio? In 2018 you had disruptors. Again, these are the have leading companies in these taken Asian Paints. But if I were businesses which do not have At the start of this interview sectors in our portfolio where the to look at your top 10 stocks, cash flows but nevertheless they you said one cannot get good valuations are reasonable. discretionary consumption is have built a lot of consumer prices and good news together. absent? franchises for themselves. This We were also discussing how So as I said, there is good news is another segment of the market this is perhaps not the time to at the macro level and to that Indeed. We have been very which we are trying to under- be greedy. In a sense does that extent we have valuations issue clearly avoiding both discre- stand more. also mean it is going to become at the micro level but that is when tionary and non-discretionary the return of the cyclicals a the expertise of looking deep consumption stocks in our We are trying to see how to safer bet? into various sectors, identifying contra portfolio. It is basically evaluate them as the traditional companies and finding out priced to perfection and at times valuation metrics like free cash We are in an economy, which is something which is having good we are finding it too expensive. flows, the discounted cash flow healing not only from the Covid-1 growth prospects, have sus- No doubt the prospects are methodology are very difficult to and Covid-2 wave shocks but tainable growth prospects and at good, no doubt the per capita the same time are reasonably income in India will continue to priced comes in. I think we have rise and to that extent, some of been able to do it so far. the consumption parts of the economy will continue to do Do we need to raise a lot of cash well. and find new ideas in the market? That is not a problem today, we We are also seeing consolidation are finding enough and more in some of those areas. I am not ideas to participate in this saying that the prospects for the healing economy. consumption sector and the consumer nondurables is not great, it is just that the valuation

\"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, SEPTEMBER-OCTOBER 2021 Special Situation Funds gaining ground ICICI Pru India Opportunities Fund posts 112% return in the last year Hindu BusinessLine | October 20, 2021 Thanks to the relentless rally in and 39 per cent since inception. invests in companies that pro- out this strategy and tends to the market, the Special Situation The AUM of these funds stands vide investment opportunities deliver robust returns in the Funds under the thematic cate- at `679 crore and `2,478 crore due to temporary crisis in a medium term. “The pandemic gory has been gaining ground respectively. company, economy, government brought about several special and worked well for investors action, regulatory changes, or situation opportunities which who are willing to take a cal- Fund performance even due to global events or were well capitalised,” he added. culated risk. However, there are uncertainties. In these times of only three special situation funds The ICICI Pru India Opportunities uncertainty, the fund invests in Kaustubh Belapurkar, Director, from ICICI Prudential MF, Axis MF fund has generated an alpha of fundamentally strong com- Morningstar, said shares of and Aditya Birla MF. 45 per cent over its benchmark, panies which face temporary fundamentally strong com- Nifty 500 TRI. Launched in setbacks due to special panies may decline due to a With the largest asset under January 2019, the net asset value situations. particular development but they management of `4,042 crore, of the fund has grown to `18.95 bounce back as these challenges ICICI Prudential India Oppor- from `10 last year, while that of S Naren, Chief Investment get addressed over time. tunities Fund has posted a return Aditya Birla Sun Life Special Officer, ICICI Prudential MF, and “Investors who want to invest for of 112 per cent in the last year. Opportunity and Axis Special the Fund Manager of India 5-7 years can consider special Similar funds of Birla MF and Axis Situation Fund was at `16.70 and Opportunities Fund, said that situation funds,” he added. MF, which were launched last `14, respectively. while near-term performance October and December, have volatility cannot be ruled out, the delivered returns of 67 per cent The special situations fund high conviction calls start playing Good place to park rally gains Economic Times | October 07, 2021 ICICI Prudential Equity Savings Funds - Conservative allocation to stocks can shield bear phases; returns higher than bank FDs with equity taxation: Advisers Investors looking to reallocate bution at GEPL Capital. Compared to ICICI Prudential after the sharp rally could their money from equity after the Equity Savings Fund's 15-16 per allocate to such a fund, with a recent bull run to safer products The fund deploys 15-16 per cent cent pure equity allocations, time frame of one year,\" said could consider ICICI Prudential of the corpus in equity and a others in the category put Nasser Salim, managing partner, Mutual Fund's Equity Savings maximum of 4.5 per cent in between 30 per cent and 45 per Flexi Capital LLP, a boutique Fund. covered call options. Around 80 cent into stocks. investment services firm. per cent of the money is put in Financial planners said the mix of arbitrage strategies and bonds. The conservative strategy would Distributors said the fund safer asset allocation in this fund help it outperform if the bullish category hasn't gained popularity could help it generate better The equity and arbitrage portion momentum reverses. as equity allocation by many fund returns than fixed income pro- always exceeds 65 per cent to schemes is high, making it unsui- ducts, while its equity-oriented give equity taxation to investors. After the near one-way move in table for conservative investors investments reduce the tax The fund, which manages assets the stock markets post-March and leaving little differ-entiation outgo. of Rs 3,412 crore, has returned 2020, many investors have seen between this and balanced 17.28 per cent over the last year. their equity allocations rise. advantage funds. \"Conservative investors looking Wealth managers are asking to earn 100-200 basis points over The category average returns are them to take some money off the fixed deposits, with equity 21.61 per cent. The under- table. taxation, and time frame of a year performance could be because can consider this fund,\" said its peers are more aggressively \"Investors looking to rebalance Rupesh Bhansali, head-distri- managed. and reduce their equity allocation Investors looking to reallocate their money from equity after the recent bull run to safer products could consider ICICI Prudential Mutual Fund's Equity Savings Fund.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 6 TARAKKI TIMES, SEPTEMBER-OCTOBER 2021 Interview Decoding ICICI Prudential Alpha Low Vol 30 ETF FoF The Money Show | September 16, 2021 ICICI PRUDENTIAL ALPHA LOW VOL 30 ETF FoF • New fund offer open for subscription till Sept 15 • Net equity levels of 65-75% • Counter Cyclical Approach • May buy REITs, InVITs & cover call option to enhance portfolio yield • Multi-style factor based investing • FoF that tracks Nifty Alpha Low Volatility 30 Index • Index of 30 stocks that have Alpha & Low Volatility from Nifty 100 & Nifty Midcap 50 Portfolio Composition Dabur India 4.8% Mindtree 3.9% Colgate Palmolive (India) 4.5% Pidilite Industries 3.8% Marico 4.1% Wipro 3.8% Hindustan Unilever 4.0% Nestle India 3.8% Infosys 3.9% Britannia Industries 3.7%

\"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 7TARAKKI TIMES, SEPTEMBER-OCTOBER 2021 Distributor Insights The ABC of Investing Once you have fought the fear and inertia of investing, you are good to go Outlook Money | August 2021 Gurmeet Singh flicting opinions. The most basic goals or reach a goal faster. It is Takeaway questions that come to mind are- always up to you. Head - Wealth Management, how to start, how much to invest Financial markets are highly Divitas Capital Pvt. Ltd. and where to invest. Some people make a very costly developed and liquid and regu- mistake when they don’t con- lations are tighter now, to benefit If you have ever thought about The answer is that the best time tinue with their SIP invest-ments investor protection. Instead of building wealth but haven’t got to start is now, and it has little to in a market downturn and sell making decisions based on around doing anything about it do with how much money you their accumulations. This is the history, fear or short-term yet, this article is for you. have. There are many ways to mistake of ‘buying high’ and thinking and emotions, investors begin investing in markets; ‘selling low’. should have a financial plan that Building wealth has little to do however, mutual funds are the reflects their return require- with your income bracket, but a easiest, most convenient and When it comes to making good ments, liquidity needs and risk lot to do with how you behave simplest to understand. Mutual with SIPs, see your SIPs through profile. Having a plan means once you decide to start inves- funds offer various options for a complete down cycle no having a specific set of goals. ting. Making your money work investment, based on an inves- matter how long it lasts; it is the The goals then help you decide for you means taking control of tor’s needs in terms of return, only way to succeed with your what type of investment is best your finances. risk appetite and liquidity. investments in the long run. for you. Once a plan is made, it is prudent to stick to it so that one A few years ago, my colleagues One can choose between debt A look back into the past will is less likely to fall victim to short- and I decided to conduct a small and equity mutual funds based show you that stock markets term trends/volatility of the survey among our group of on one’s requirements. Equity have recovered from all major markets. friends. Most of them are succ- mutual funds invest in stocks of crashes. As SIPs help you invest essful professionals-senior different companies and are with regularity, you can buy the In conclusion, with the changing engineers, executives and mid- among the most tax-efficient dips when markets are tumbling. needs of investors, the mutual level managers at reputed com- investments, offer diversifi- Bear markets are not easy to deal fund industry has indeed evolved panies. Despite being virtually at cation, hedge against inflation with, but they are great times to to offer investors a good invest- the top of their respective career and are highly liquid. On the accumulate stocks. ment experience. Investors sho- pyramids, they had little idea other hand, debt mutual funds uld continue and stay through about finance and were invested invest in money and bond For the same quantum of invest- market cycles to achieve various only in traditional products such markets. ment, SIPs add more mutual- long-term financial goals. It will as real estate, PPFs and Fds. fund units every time the market be advisable to go for long-term If you are in the early stages of tumbles. The more the market SIPs in equity mutual funds with On scrutiny, we noticed that the your career, it doesn’t matter falls, the better it is for your SIPs, specific financial goals in mind. main reasons for such behavior how much your initial investment because you can buy more were investment habits passed amount is. Systematic Invest stocks and units. down from parents and family. Plans (SIPs) are today the Society advocates risk-aversion, preferred way for small and big Mutual fund is the easiest, and lack of information or busy investors, for the convenience most convenient and simplest schedules to research plausible this route brings: monthly way to begin investing in investment options adds to it. saving, rupee-cost averaging, markets, offering various optimal risk-reward balance and options based on your needs. Investing seems complicated as superior wealth creation Of these, SIPs are the most we are bombarded with con- potential. preferred route for small and big investors because of their The SIP way of investing allows convenience. you to automate saving and investing for life. SIPs are simple to maintain. Over an extended period, SIPs can deliver great returns. Plus, there are ways to obtain a much steadier per- formance and build wealth at the same time using the SIP route. As your income rises, you can boost your monthly SIP or do a top-up SIP to plan for bigger

\"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, SEPTEMBER-OCTOBER 2021 Channel Partners Distributor Insights Take a shot at target maturity funds The portfolio credit quality of this relatively new genre of debt funds is commendable The Hindu | October 24, 2021 The fundamental approach to Typical debt fund investors can space out your investments. TMFs is top notch. To under- building one’s investment expect visibility on returns, like The other aspect of TMFs to stand this, we have to see the portfolio is to have an appro- with a bank fixed deposit. understand is how these funds available classes of debt secu- priate allocation to equity, debt are structured. An Index Fund is rities. The best instrument is the and any other asset you may The other concern among inves- one that follows an index, and one issued by the Government of want to have, for example gold. tors is about the credit quality; the fund manager does not play India, popularly known as G- The basic premise is that the the incidents of credit defaults an active role in fund mana- Secs. A more-or-less similar different investments i.e. equity, that happened earlier are avoi- gement. An Index Fund could be category, is the one issued by debt and gold have different dable. In this backdrop, is it an equity fund based on, say, the State Governments, called SDLs. profiles of variability in returns; in possible to have a debt fund that Nifty or the Sensex. In debt SDL stands for State Deve- other words, volatility is a given. cushions against volatility risk TMFs, the index is custom-built lopment Loans. Then, we have By making appropriate allo- when interest rates move up, as these funds do not follow an bonds issued by PSUs that have cations, you bring about balance have a very high portfolio credit existing index but have a the highest credit rating, which is in your investment portfolio, also quality and also provide some particular mandate. ‘AAA’. known as ‘optimising’. visibility on returns? There is a relatively new genre of debt The indices for TMFs are run, in In the Index Fund format, for The appeal of debt mutual funds funds called Target Maturity most cases, by the NSE, and example, ICICI Prudential AMC in the overall picture is that it is Funds (TMFs). sometimes by Crisil. has come out with an NFO called relatively less volatile than equity, PSU Bond plus SDL 40:60 Index but yields lower returns in ‘Hold till maturity’ The other structure on which a Fund - Sep 2027. The portfolio comparison. In other words, the TMF can be built i.e. other than comprises 40% AAA-rated PSUs relatively more stable com- There is only one minor condition the Index Fund format, is the and 60% SDLs. We have IDFC ponent of your portfolio is debt. - you have to hold the fund till Exchange Traded Fund (ETF). In Gilt 2027 Index Fund and Gilt In India, it is known as debt maturity. But do not worry about this structure also there is an 2028 Index Fund, portfolio investments, but abroad it is this condition - there are multiple index to be replicated. The comprising G-Secs. Maturities of called fixed income investments funds available with various difference is, units of ETFs are these funds are 6-7 years from as there is a fixed coupon or maturity dates. If you require listed on the exchanges. You now, and you can redeem easily interest on the instruments. liquidity prior to maturity, that is cannot purchase from or redeem if you require liquidity earlier. available. with the AMC, which you can do ‘Volatility concerns’ with other funds, including Index The portfolio yield of ICICI is a Let us understand the concept of Funds. little higher than IDFC as G-Secs To be noted, in fixed income TMFs. As the name suggests, carry rates that are slightly lower mutual funds, returns are not there is a target or a stated date You can purchase/sell ETF units than SDLs or PSU bonds. In the fixed as such as it moves along on which the fund would mature. on the exchange, similar to how ETF format, there are Bharat with the market, but it sees Upon maturity, money flows you transact in equity stocks. Bond ETFs of various maturities - lesser volatility than equities. back to the investors. TMFs are Liquidity is generally there in April 2023, April 2025, April 2030 similar to fixed maturity plans ETFs; at least it is better than and April 2031; portfolios On debt funds, there are two (FMPs), in that they mature like a with FMPs. The condition here is comprise AAA-rated PSU bonds. concerns that people have. One, bond or a bank fixed deposit. similar to trading in equity what if interest rates move up? shares: you need to have a (The writer is a corporate trainer Mind you, interest rates moving However, TMFs are significantly demat account and an account and author) up is not the same as equity better than FMPs. The drawback with a stock broker. stock prices moving up. of FMPs is that though it is listed on the exchanges, there is no Not a tough ask, but some like When bond interest rates move liquidity. If you intend to sell prior senior citizens or people who are up in the secondary market, to maturity, you may not get a not used to it may prefer TMFs bond prices come down, and buyer. Moreover, the usual structured as Index Funds. In consequently the NAV of your maturity of FMPs is three years. Index Funds, you can transact in debt mutual funds are impacted. This means that the choice of the units in the normal course Somewhere down the line, the investors is limited to a one time with the AMC, like you do in other RBI will have to raise interest horizon. funds. rates from the very low levels of today, which would rather be rate We will mention in a while, the ‘Different shades of value’ normalisation than increases in various TMFs available and their the usual sense of the term. maturity dates. Accordingly, you The portfolio credit quality of

\"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 9TARAKKI TIMES, SEPTEMBER-OCTOBER 2021 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Chetan Upadhyay Mutual Fund Distributor In 2050, 70 crore Indians will be above the age of 60, with a retirement savings void worth $85 trillion, and that's why we need retirement planners like Chetan Upadhyay. Chetan Upadhyay runs a firm titled Carefree Retirement and is based in Ahmedabad for the last 21 years now! A graduate in M. Com, for the first 10 years of his career, he worked in a job handling high profile client accounts. He now looks back and recalls how a job was never the right fit! He tried and he tried for 10 years, but it eventually came to a point, where he knew that he wasn't meant for a job, after all. His clients and colleagues all saw in him a leader, and that's where he got his motivation to start his own financial advisory. But, as the beginning of most glorious journeys is difficult, so was his. Though he never saw the struggle as a challenge, he saw it as a learning curve. He used this time to train himself and acquaint his customers with investments and financial planning. While most financial advisors even today stick to jargons and pitching the product, Chetan has always taken his sweet time helping clients get a holistic view of what they are signing up for. He takes them through microscopic personal financial behaviors and how they can be the ones driving their own wealth. It is this unique approach which has reaped gold in the last 10 years of his career as an independent advisor. When he started out in 2000, leads were few and conversions were fewer. Today, Chetan manages 125+ happy Indian families with an order book of over INR 150 Crores in total managed financial assets. He conducts various workshops to educate masses at large on how to plan their finances and move towards more stables lives. Chetan has also written two books: A guide to happy retirement and 10 key issues of wealth management. He fondly recalls his initial phase as the time he truly learnt. Especially till 2005, in his own words, he learnt how to survive. He faced issues when customers were hesitant to share data or didn't have the time to talk in detail on products. They found it rather odd that he wasn't adamant on making a sale! And today, he is Ahmedabad's famous “retirement planner”. Although Chetan helps his clients with financial planning and other aspects of their finance too, he is largely known and recognized for his retirement planning endeavors. We can take it that he does a good job at it since 70% of his impressive customer list is just references! ARN - 33074

\"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, SEPTEMBER-OCTOBER 2021 Fund Review mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | October 2021 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 17.85 14.88 16.09 30,089 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 7.58 9.00 NA 107 ICICI Prudential US Bluechip Equity Fund 17.46 18.81 NA 1,809 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 5.84 8.72 7.65 20,383 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | October 2021 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Sensex Index Fund 3-month 3-year 5-year - 11.79 15.87 52.42 15.66 16.59 54.17 14.92 14.54 ICICI Prudential Nifty Index Fund 10.68 12.47 EQUITY: VALUE ORIENTED 7.26 17.87 59.02 14.31 9.24 ICICI Prudential Value Discovery Fund 3.5 7.38 HYBRID: CONSERVATIVE (DEBT ORIENTED) 1.19 5.99 14.29 10.15 7.66 ICICI Prudential Regular Savings Fund 1.62 7.61 DEBT: MEDIUM- TO LONG-TERM 1.26 3.84 5.05 9.23 8.25 ICICI Prudential Bond Fund 1.44 7.74 DEBT: MEDIUM-TERM 1.44 4.33 8.19 8.63 ICICI Prudential Medium Term Bond Fund DEBT: SHORT-TERM 3.15 5.88 8.61 ICICI Prudential Short Term Fund DEBT: DYNAMIC BOND 3.63 6.64 9.41 ICICI Prudential All Seasons Bond Fund DEBT: CORPORATE BOND 3.25 5.81 8.66 ICICI Prudential Corporate Bond Fund

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 11TARAKKI TIMES, SEPTEMBER-OCTOBER 2021 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | October 2021 Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR ICICI Prudential Bluechip Fund 26.1 54.3 14.0 14.2 ICICI Prudential Large & Mid Cap Fund 34.4 64.5 14.7 13.1 ICICI Prudential Multicap Fund 34.1 66.1 12.8 13.1 ICICI Prudential Midcap Fund 39.0 73.4 16.7 14.8 ICICI Prudential Smallcap Fund 52.2 96.1 23.1 16.2 ICICI Prudential Focused Equity Fund 32.3 57.4 14.3 13.1 ICICI Prudential Value Discovery Fund 33.3 60.2 14.5 12.7 31.2 62.8 14.6 13.8 ICICI Prudential Long Term Equity Fund (Tax Saving) 36.9 69.4 11.9 12.0 ICICI Prudential Dividend Yield Equity Fund ICICI Prudential FMCG Fund 18.9 35.0 9.1 12.2 ICICI Prudential Infrastructure Fund 47.2 82.6 14.5 12.5 ICICI Prudential Banking & Financial Services 29.3 68.9 10.9 12.9 ICICI Prudential Technology Fund 56.4 111.5 35.1 32.1 ICICI Prudential P.H.D Fund 20.9 42.5 24.8 - ICICI Prudential Equity & Debt Fund 33.8 58.5 15.5 14.0 ICICI Prudential Equity Savings Fund 7.9 15.7 8.0 7.5 ICICI Prudential Ultra Short Term Fund 3.3 4.2 6.7 6.8 ICICI Prudential Savings Fund 3.6 5.1 7.6 7.3 ICICI Prudential Money Market Fund 3.0 3.7 6.2 6.5 ICICI Prudential Short Term Fund 3.4 4.9 8.5 7.4 ICICI Prudential Medium Term Bond Fund 4.8 6.4 8.7 7.5 ICICI Prudential Bond Fund 2.3 3.5 9.1 7.1 ICICI Prudential Long Term Bond Fund -0.3 1.0 9.2 7.1 ICICI Prudential All Seasons Bond Fund 3.8 5.5 9.4 7.9 ICICI Prudential Corporate Bond Fund 3.5 4.8 8.5 7.6 ICICI Prudential Credit Risk Fund 5.3 7.0 8.8 7.9 ICICI Prudential Banking & PSU Debt Fund 3.6 5.1 8.2 7.2 ICICI Prudential Gilt Fund 3.4 4.9 9.7 7.6 ICICI Prudential Regular Savings Fund 9.9 14.7 11.3 9.4 ICICI Prudential Balanced Advantage Fund 15.7 27.1 14.6 11.0 ICICI Prudential Child Care Fund (Gift Plan) 23.3 38.8 14.8 10.5 Source: NAV India; NAV for the growth option as on 22-10-2021. Past performance may or may not sustain in the future. It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

\"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, SEPTEMBER-OCTOBER 2021 Striving Success Stories FIRST EDITION Striving Success Stories Abhijeet Mukharjee Ashish Modani B Giri Babu Bhushan Wani Jharkhand Jaipur Hyderabad Crescent Mutual Fund Distributors Bipin Bihari Sinha Deepesh Mehta Gurmeet Singh Hari Ghanshyam Chadha & Kamat SSS Distributors Pvt. Ltd. Happy Investor Finserv LLP Kshitiz Mahajan Goa Complete Circle Capital Pvt. Ltd. Mehul Mahendrabhai Pratik Arvindbhai Rajan Nagpal Ravani Shah Panipat Rajkot Bharuch Watch this space for more!!