Tarakki Times English May-June 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 MUMBAI | MAY-JUNE 2021 | PAGES 20 Professional Views Makes sense to remain constructive on equities Pg. 2 A $57 billion manager is betting big on cyclical stocks in India Bloomberg | June 09, 2021 Pg. 3 We continue to believe value investing will prevail, says S Naren Economic Times | May 05, 2021 Pg. 4 Investors should ideally stay invested with 2-3 year perspective in IT funds Economic Times | May 27, 2021 S. Naren, ED & CIO Pg. 5 A large part of the economy Business Standard | June 18, 2021 tends to be cyclical in nature Wealth Insight | May 2021 Anish Tawakley, Senior Fund Manager Nimesh Shah stipulated on investment from a equity allocation can opt for Pg. 7 MD & CEO single investor. This philosophy categories such as flexicap ICICI Prudential Mutual Fund announces ICICI Prudential Mutual Fund has enabled us to deliver wherein the corpus can be the launch of NFO for flexi-cap fund superior investment experience allocated across the market cap Assets under management: ICICI Mutual Intermittent volatility cannot be to our investors. spectrum, value, business cycle displaces HDFC MF from second spot ruled out but one should remain or special situation category of Pg. 8 constructive on equities, says Q. Given the current environ- funds. Bold calls drive this fund Nimesh Shah, MD and CEO at ment, how should one go about back to top quartile ICICI Prudential Mutual Fund. In investing in Mfs? Q. Exchange-traded funds an interview with Chirag Madia, (ETFs) are stealing a march over Wealth Forum | May 11, 2021 Shah says India remains attrac- Over the past one year, the active-funds. Why? And will tive as corporates have deleve- markets have been steadily this continue? Prakash Goel, Senior Fund Manager raged, credit growth is very low, raising due to which on a trailing Pg. 9 capex cycle is yet to revive and valuation basis it may not look Passive fund growth in India is profit-to-GDP ratio is low too. cheap. However, from a busi- predominantly led by larger ICICI Pru Balanced Advantage Fund Edited excerpts: ness cycle perspective, India institutional investors. Majority Pg. 10 remains attractive as corporates of retail and high net worth Value funds shine as ‘growth’ trade fizzles have deleveraged, credit growth individuals (HNIs) investors are is very low, capex cycle is yet to still investing in active funds and Pg. 11 Q. How difficult was last fiscal revive and profit-to-GDP ratio too we expect this trend to continue. given the crisis in the debt is low. Globally, all risk assets The narrow rally since January ICICI Pruential Long Term Equity Fund funds and what are the lessons including equities and commo- 2018 with top 10 Nifty stocks (Tax Saving) learnt from it? dities are seeing a big boom. dominating made it difficult for Going forward, we believe diversified active funds to beat Tarakki Corner recovery in the business cycle the benchmarks. Now with easy can help in improving corporate central Bank liquidity led inflation Pg. 12 Compared to 2020, we believe earnings and profitability. and earnings growth, we expect Manu Mehrotra 2017-18 was a much more Keeping in view all of these the market rally in the days ahead developments, it is prudent to to become much more broad- Pg. 13 difficult period when there was a remain constructive on equities. based. The early signs of this Furthermore, with financia- have been visible since October Ajay Kumar Singh rush for yields without factoring lisation of savings, a surge in 2020, where the Nifty50 Index investments is likely leading to gained 37 per cent while midcap Distributor Insights the risks involved. We had higher domestic flows. Inter- and small cap logged in gains to consciously maintained the mittent volatility cannot be ruled the tune of 52 per cent and 62 per Pg. 14 decision-making process based out given the evolving develop- cent respectively. As rally ments around pandemic situa- becomes broad based, we are Allocate your assets to sail through on our analysis of the risk-return tion and global growth recovery. seeing a trend of increasing high tides trade-off. This discipline had As a means to make the best out allocation towards active funds probably resulted in our losing of a probable volatile market, an continuing Pg. 15 optimal approach for a retail investor would be to invest in a Q. Sebi has been tightening MF Zero in on focused funds for higher returns out on many investments made balanced advantage or dynamic regulations. What is your take asset allocation category of on this, particularly on the new Fund Review by other market participants, but funds where the allocation to compensation norms? equities is dynamically Pg. 16 it helped us avoid credit events managed. For those considering Despite the tightening regula- List of ICICI Prudential Funds in Mint seen last year. Some of these ETW Funds 100 risks may have relatively lower Pg. 17 probability of incidence, but if List of ICICI Prudential Funds in Star they happen, the resultant Track Mutual Fund impact may be detrimental to the performance of the credit Awards investment. The event risk by nature is difficult to forecast. The Pg. 18 Lipper Fund Awards 2021 adverse impact of event risk can Pg. 19 be mitigated only through Outlook Money Awards 2020 avoiding concentration in investments. In ICICI Prudential Credit Risk Fund, we have a limit

\"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, MAY-JUNE 2021 Interview tions, the industry has only top AMCs? What steps have management capabilities owing experience have been success- grown bigger as investors are you taken to reach there? to the good investment perfor- ful in growing their businesses. increasingly realizing that mutual mance we have delivered over funds as an investment product The AMC business is all about the last two decades. Q. We have had few fund are very transparent in nature. investment performance and houses go public the past few We welcome the recent guide- delivering a positive investment Q. Many new players are enter- years. Do you plan to join your lines. For more than a decade, as experience. Today, we have a ing the MF space specifically on peers in going public in the near a policy, a significant portion of formidable presence across the fintech side. Is that a threat future? the variable pay of our senior equity, debt and hybrid cate- to established players? management and fund gories of funds. We are the The increase in the choice of manager’s bonus every year gets pioneers when it comes to the We welcome the new age listed asset management invested in ICICI Prudential asset allocation category of fintech players who are partici- companies is a positive both schemes. Also, most of our schemes. Over the last 22 years, pating in mutual fund distribution from an investment and a employees have the majority of there has never been a default or and AMC business, as it will player ’s point of view. The their investments in our delay in payment of interest in further enable penetration of decision to go public depends schemes only. So, for us, this is any of our debt schemes. In mutual funds in India. While upon the shareholders and hardly any change. terms of equity as well, we have fintech is the delivery mode shareholder’s prerogative and strategies across the board. We which most AMCs have focused hence, I would not like to Q. ICICI Prudential has believe asset growth is a sign of upon, the AMCs which have comment on that. consistently been amongst the investor confidence in our fund delivered a positive investment A $57 billion manager is betting big on cyclical stocks in India Bloomberg | June 09, 2021 Sankaran Naren staples and high-quality names is very low, the capex cycle is yet traded in India recently rose ED & CIO gain, the current environment is to revive and profit-to-GDP ratio above $3 trillion for the first time, ICICI Prudential Mutual Fund best placed for cyclicals to do is low too,” according to Naren. burnishing its status as the well.” In comparison, the ratio for U.S. world’s eighth-largest stock Shares of some lenders, telecom companies “is high and the market. The benchmark S&P BSE firms and utilities are among the Stocks in India have climbed to country has pursued extremely Sensex is trading at 21.7 times its top picks for India’s second- record levels even as it grappled aggressive fiscal and monetary 12-month forward earnings largest asset manager, as it bets with the worst of the health policy,” he wrote. estimates, versus a five-year on the economy to gradually crisis, as investors continued to average multiple of 18.5 times, emerge from the world’s worst snap up shares on optimism over New Fund data compiled by Bloomberg Covid-19 outbreak. the economy’s long-term growth show. potential and central bank While the immediate focus for With India sticking to localized stimulus. The Reserve Bank of investors is the pace of India’s The gauge was down 0.6% as of curbs instead of a nationwide India this month expanded its vaccine rollouts and its recovery 3:15 p.m. in Mumbai, while the lockdown amid the deadlier version of quantitative easing from the pandemic, Naren said MSCI Asia Pacific Index fell second coronavirus wave re- and said it expects gross that one of the biggest risks to 0.4%. The Sensex has outper- cently, the impact on economic domestic product to grow 9.5% local stocks could come when formed the regional mea-sure by activity and businesses has in the current fiscal year. global central banks take steps about four percentage points been much lower, according to taper their buying program this year. ICICI Prudential Asset to Sankaran Naren, Chief Focusing on cyclical and value significantly. “At that point, we Management is preparing to Investment Officer at ICICI shares has already shown results expect to see a meaningful launch a “flexicap” fund by the Prudential Asset Management for the money manager. The ICICI correction in asset prices and end of this month, which Naren Co. The firm oversees about 4.1 Prudential Opportunities Fund economy,” he said. “One needs said will give it the freedom to trillion rupees ($56.6 billion) in directly managed by Naren has to be cognizant of the fact that deploy money across large-, assets. returned 36% year-to-date, Indian equity valuation is no medium- and small-size beating 96% of its peers, data longer like what it was in March companies in the initial year, “India is yet to see a cyclical compiled by Bloomberg show. 2020.” when the market is likely to be economic recovery and the Wireless operator Bharti Airtel volatile. business cycle is not as elevated Ltd., power-generation firm The combined value of all shares as we see in some of the NTPC Ltd. and Axis Bank Ltd. developed world,” Naren wrote were three of the fund’s top five in an email interview. “Unlike in a holdings at the end of April, the deflationary economy during data show. which sectors like consumer Meanwhile, infection rates in India are now falling. New daily cases on Tuesday fell below 100,000 for the first time in two months, down from a peak of more than 400,000 in May. “The Indian business cycle is attractive given that corporates have deleveraged, credit growth

\"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, MAY-JUNE 2021 We continue to believe value investing will prevail, says S Naren Economic Times | May 05, 2021 Sankaran Naren metals have limited intrinsic under control through vaccina- gory of schemes. These cate- ED & CIO value whereas we believed tions, we expect the recovery to gories of funds are well placed to ICICI Prudential Mutual Fund otherwise. The last one year gather momentum. We believe take advantage of market showed that metal too has there will be a period of cyclical volatility and such products have Value funds have staged a strong intrinsic value. So, as long as you economic recovery as the the flexibility to move assets comeback in the last few have a fair understanding of what accommodative stance of the US between equity and debt based months. \"Over the past 17 years, intrinsic value is in the new Federal Reserve is likely to on their relative attractiveness. value investing has emerged as a world, value investing has not continue for some time. The real good long-term investing changed. risk to the market, apart from the Several sectors are doing well. strategy, especially through the pandemic induced challenges, Which are the sectors that are SIP- route for long-term equity Value Discovery Fund also will emerge when the US Fed looking promising at the investors,\" says S Naren of ICICI benefited from the rally. The turns hawkish or raises rates or moment? Prudential Mutual Fund. Edited scheme has offered over 70% rolls back quantitative easing. interview returns in the last one year. Do Any of these developments has We think most of the cyclical you feel vindicated? the potential to bring down US sectors represent good value till Everyone is talking about value and other global markets the central banks tighten mone- these days in the market. As a We have been believers in value significantly. So, essentially from tary policy. Within defensive well-known value investor, investing through the years and here on, we believe that the sectors, pharma and IT represent how do you view the scenario? launched our value fund in 2004. room for volatility is very high. relatively better value compared Over the past 17 years, value The only way an investor can to consumer sectors. There is good scope for return to investing has emerged as a good address this risk is by adhering to be made from value investing. long-term investing strategy, asset allocation discipline. What is your advice to new Even today there are many especially through the SIP- route investors getting into the sectors where valuations are for long-term equity investors. At Do you think Indian economic market? attractive. Many of these the same time there have been activity can justify the current pockets have not delivered periods such as 2006-2007 and market? Investors should be aware that returns in the period after 2008. 2017-2018 when investors part of the reason for good When it comes to equity inves- doubted the idea of value We are not at the peak of the returns in equity market is signifi- ting, value-oriented approach is investing. economic cycle when we look at cantly due to the role played by something we would actively parameters such as credit the global central banks in recommend long-term investors While past returns are no growth, capacity utilisation and keeping asset prices elevated by to consider. However, we have to indication of the future possi- capex cycle. Consequently, we pumping in record amount of remember that globally due to bilities, the Rs 10 NAV of 2004, think there is scope for improve- money. This will be called to the central banks pumping in despite all the volatility in the ment in economic cycle and that question at some point in time record amount of money there market has grown to 192.63 as of would lead to a positive impact over the next three to five years has been a distortion in asset 31 March 2021; a CAGR of on equities. and that would be a source of prices. Due to this there are risks 19.46% against 15.72% posted volatility for asset prices. We to assets' prices which may play by Nifty 50 TRI. We continue to You often call the market right. have been continuously com- out at some point of time in the believe that value investing will Do you think investors should municating that global central next four to five years, not just for prevail, but risks do exist for both get in equity or increase banks is the main reason why US value, growth or quality investors equity investing and for value allocation to debt? stock market has been contin- but for investors in every asset investing. Nevertheless, we are uously rallying since 2012. With class since the long -term impact intrinsic believers in value For investors looking to take inflation in most commodities of central bank's action is investing. exposure to equities can consi- rearing its head, it is very likely unknown. der investing through the SIP that going forward global central The current market levels and route with a long term (10-year) banks will be responsible for a There is a general view that Covid situation are making investment horizon. Those probable market correction. The value investing has changed in existing investors, including within an investment horizon room for volatility in equities the last few years. Do you seasoned investors, a bit lesser than 5 years, should remains high. The only way an agree? nervous. How do you view the consider investing in a scheme investor can address this risk is market? which is hybrid in nature such as by adhering to asset allocation Value investing is buying a stock the asset allocation scheme or discipline. below its intrinsic value. But how The Indian equity market has the balanced advantage cate- intrinsic value is calculated in a been under pressure off late with disruptive world is open to the rampant spread of Corona- There is good scope for interpretation. A year before virus across the country. Given return to be made from value several investors believed that that this is an evolving situation, investing. Even today there the near- term equity market are many sectors where sentiment remains weak. Since valuations are attractive. we went through a similar situation a year back, we believe both the corporates and inves- tors are better prepared to face the challenges that could possibly come our way. Once the pandemic is brought

\"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, MAY-JUNE 2021 Interview Investors should ideally stay invested with 2-3 year perspective in IT funds Economic Times | May 27, 2021 ICICI Prudential Technology Fund CAGR has been 15-17% per higher spending on IT. How Sankaran Naren has offered around 125% returns annum, but was fraught with ups long do you think the trend will ED & CIO in the last one year. Shivani Bazaz and downs which were largely benefit the sector? of ETMutualFunds.com spoke to stock specific in nature. We ICICI Prudential Mutual Fund S Naren, Ed and CIO and also the believe this trend is likely to The pandemic has accelerated fund manager, to find out what's sustain and technology com- the adoption of digital and cloud What would be the advice in store for this fund. panies could continue to see 7- technologies by at least 3-5 you would give to IT fund 8% dollar growth and an EPS years. We believe this trend is investors? ICICI Prudential Technology growth of 11-12% in the medium likely to continue and say over Fund has given over 125% term. Hence, we expect funds the next five years, IT industry Investors who wish to invest in returns in the last year. Its way operating in this space to could see better growth rates as technology fund should ideally above the category average. generate compounding returns compared to pre-covid growth stay invested with a minimum 2- How did you manage this broadly in a similar range. levels. 3 year perspective. This is superlative performance? because digital as a theme is Is IT sector becoming an The global economy may do likely to fuel growth in the near Over the last one year, the evergreen sector? better than the Indian economy term which is a positive for performance of ICICI Prudential due to covid situation. Are IT the sector. Technology Fund has been made Our dependence on IT for basic funds well positioned to possible by the robust returns necessities of life is constantly benefit from it? In terms of ICICI Prudential generated by mid and small cap growing and everlasting. Digital Technology Fund, we invest technology companies. technology adoption is be- In case of ICICI Prudential largely in high quality companies, coming pervasive in almost Technology Fund, 85-90% of with an aim to provide steady The portfolio had a significant every sector. Disruptive techno- the portfolio holdings' are returns from a medium term exposure to names from these logies such as cloud computing businesses that have significant perspective. pockets. Most of these port- and data analytics are offering exposure to the US and Euro- folio companies gained due to new windows of opportunities pean markets. Hence, the fund is increased demand for digital for Indian companies. well positioned to capture this. services as work from home began. As a result, IT sector is likely to be What are the challenges likely on a growth path from a near to to be faced by the industry in Technology funds had a great medium term perspective as the near future? run in the last few years. 2016 technology spends would con- was the only year when these tinue to gain share for every The key challenges in the near funds gave negative return. corporate. term for IT companies are likely How do you view this record? to be excessive wage inflation Investors have been bullish on and Covid related delivery The last 7-8 years, the sector the IT sector due to Covid and challenges. IT sector is likely to be on a growth path from a near to medium term perspective as technology spends would continue to gain share for every corporate.

\"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, MAY-JUNE 2021 A large part of the economy tends to be cyclical in nature Wealth Insight | May 2021 Anish Tawakley place. Demand-driven slumps point of the cycle. growth indicators: Credit Senior Fund Manager happen when households and growth, business confidence, ICICI Prudential Mutual Fund businesses become cautious or Do all businesses undergo consumer confidence, new risk-averse, leading to a red- cycles or are there any specific project announcements, Business cycles are an important uction in both consumption and businesses that are subject to demand growth in industries element of investing. Under- investment spending. House- them? such as auto, cement, steel, etc. standing them can help you holds cut back on their discre- invest in companies that are best tionary spending like holidays, There are some businesses (4) Global growth outlook positioned at a point in time. We eating out, etc. On the business which are cyclical in nature, speak to Anish Tawakley, Senior side, corporates may decide to while some others tend to be The risk of going wrong is Fund Manager, ICICI Prudential cut back on investments. But, less cyclical. For example, minimised by having exposure to AMC about business cycles. He ironically, one person's spending healthcare is not a cyclical three to five different sectors at also tells us if the business cycle is another person's income. So, business but capital goods, any point in time, with diversi- for cyclicals, such as metal, when spending falls, income automobiles, financials are fication within these sectors built realty, capital goods, etc., is falls further, and that leads to the cyclical businesses. So, a large in. The sectors chosen are based reversing. Tawakley co-manages spending weakening further. So, part of the economy tends to be on their appropriateness for a ICICI Prudential Business Cycle it's a vicious cycle. cyclical in nature. given point in cycle. Based on a Fund, which has assets of over continuous assessment of the Rs 4,600 crore as of March 2021. Booms happen when consu- What are the key indicators evolving economic conditions mers and businesses are feeling that help you read a business and the policy response being You run a business-cycle fund. very optimistic and are spending cycle and its reversal? How do tailored, the sectors are bound to Please tell our readers what a freely. As demand is strong, you minimise the risk of going change dramatically when business cycle is, what causes capacity utilisation is high and wrong with reading a cycle? needed. For example, if the it and why it is important as an profitability too is strong. Here, economy is going through a investment theme. businesses are feeling confident We look at a very large set of slump phase, it is very likely that of investing and are also giving indicators. These can broadly be the central bank could embark on We know that economies go wage hikes as a means to attract grouped into the following: monetary-policy easing, which is through periods of booms and employees. a trigger that can change our slumps. These could occur either (1) Macro-stability indicators: view substantially. because of demand or supply The duration and severity of an These include current account shocks. An example of a supply economic cycle depends on deficit, inflation, balance-of- After a long period of lull, shock is the one seen during the what is causing it, the policy payments situation and capital sectors such as metals, realty, onset of the pandemic when response to it (monetary and flows, banking-sector capital power and infrastructure, have production activity could not take fiscal). The fact here is that at adequacy, corporate and started performing well. different stages in a cycle, household leverage, etc. What's going on in them? Is the different sectors tend do well cycle reversing for them or is it and it is this logic which is (2) Economic slack (capacity just high liquidity taking the applied when it comes to utilisation) indicators: Capacity stock prices up? managing a business-cycle fund. utilisation in capex-intensive Depending on where we are industries, like steel, cement, For many of these sectors the placed in an economic cycle, we power, etc. cycle has reverted. When it invest in sectors which are better comes to metals, the spreads, placed to make gains at that (3) Demand and investment i.e., EBITA per tonne have almost

\"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, MAY-JUNE 2021 Interview doubled. For real estate, we are seemed to be getting back on The type of stocks in the early stages of a reversal as its feet, a revival in COVID picked for the portfolio can be seen through the uptick in cases has cast a shadow. What will depend on the sales volume. In real estate, we portfolio adjustments are you nature of the shock and are hoping that activity volumes making to counter this the policy response remain strong and price growth renewed uncertainty? both in terms of both remains moderate. Strong real- fiscal and monetary. estate volumes are a positive for Since this is an ongoing deve- the overall economic activity. In lopment, we are closely moni- terms of the power sector, it is toring the evolving situation. Our too early to talk about reversal as view at the moment is that we do power demand is yet to pick up not expect a prolonged hit to the meaningfully. In terms of infras- economic activity. Earnings for a tructure, government support quarter or so could, of course, has been a major factor for take a hit. The recovery should revival here. again start gathering momentum after this period. So, we want to How exactly do you pick stocks be sure that companies we are for your fund? When do you exit holding have the balance sheet them? to withstand a weak quarter without having to raise capital. While we use a lot of quantitative inputs, there is a fair amount of How is understanding business forward-looking judgement cycles useful for a long-term involved as well. Every cycle is stock investor, who just wants different as the challenges faced to pick a few good companies by the economy will differ from and hold them for the long time to time and hence the shape term? of the cycle. As a result, the type of stocks picked for the portfolio As we have discussed, cyclical will depend on the nature of the sectors comprise a very large shock and the policy response part of the economy. Even the both in terms of both fiscal and highest-quality companies in monetary. these sectors are affected by these cycles. Some of the When it comes to making an exit companies that have fared decision, we look at individual poorly over the last decade or so - sectors, based on parameters particularly in the capital-goods such as capacity utilisation, sector - are, in fact, very strong profitability, amongst several companies. It was just that the others. If the stock appears to be economy went through a very fully valued or the profitability is prolonged slump and these at its zenith, then we choose to sectors did not do well. Had exit that name. economic growth been stronger over the last decade, many of the Which sectors or themes are companies in these sectors you betting on currently and would have fared much better. why? Which ones would you So, you can have situations avoid and why? where an investor identifies the best company in the sector, but We are positive on deposit-rich then the sector goes through a banks, capital goods, metals and prolonged downcycle and even are avoiding consumer goods, this company delivers mediocre FMCG and non-deposit based returns. unsecured retail lenders. Just when the economy We do not expect a prolonged hit to the economic activity. Earnings for a quarter or so could, of course, take a hit. The recovery should again start gathering momentum after this period.

\"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, MAY-JUNE 2021 ICICI Prudential Mutual Fund announces the launch of NFO for flexi-cap fund Mint | June 11, 2021 ICICI Prudential Mutual Fund has among the equity schemes that related instruments of large-cap, their corpus in equity, but announced the launch of a flexi- is the most flexible among the mid-cap and small-cap without any restrictions on cap fund. It is an open-ended equity scheme offerings,\" said companies; 0-35% in other whether they can invest in large-, equity scheme that aims to Nimesh Shah, managing director equity and equity-related instru- mid- or small-cap stocks. provide capital appreciation by and chief executive officer, ICICI ments; 0-35% in debt instru- investing in equity and equity- Prudential Asset Management ments, units of debt mutual fund This came after the markets related securities across market Company. schemes and money market regulator in September had capitalization based on an in- instruments and 0-10% each in introduced new norms for asset house market capitalization “We will be guided by our in- preference shares and units allocation rules for multi-cap allocation model. house market cap allocation issued by real estate investment funds, mandating a minimum model to provide direction and trusts (Reits) and infrastructure 25% allocation each in large-, The new fund offer (NFO) will help ascertain the right allocation investment trusts (InvITs). mid- and small-cap stocks. open on 28 June and close on 12 to various market caps,\" he July. The flexi-cap fund will added. Melvin Joseph, a Sebi-registered Following the changes in rules, follow a mix of top-down and investment adviser and founder most funds moved to the flexi- bottom-up approach to identify The scheme will be managed by of Finvin Financial Planners-who cap category. oppor-tunities in large-, mid- and senior fund manager Rajat doesn’t recommend new fund small-cap spaces. Chandak. The overseas offers-said that from an According to a recent report by investments will be managed by investor’s point of view, there’s Morningstar India, total assets According to the asset manage- Priyanka Khandelwal. no shortage of any funds, managed by mutual funds under ment company (AMC), the including flexi-cap funds, in the the newly created flexi-cap investment universe considered Other funds managed by market. category stood at `1.59 trillion as will be the S&P BSE 500 and the Chandak at ICICI Prudential AMC of March-end. stock selection can be based on include regular savings, Bharat New Category multiple parameters such as consumption, blue-chip and The felxi-cap category cons- company fundamentals and balanced advantage. In November, the Securities and tituting 16% of the overall assets valuations, among others. Exchange Board of India (Sebi) of open-ended equity funds, Investment Plan had launched a flexi-cap second only to large-cap funds. Flexible Offering category for mutual funds, The flexi-cap scheme will invest requiring funds under this “Flexi-cap is one category 65-100% in equity and equity- category to invest at least 65% of Assets under management: ICICI Mutual displaces HDFC MF from second spot Hindu BusinessLine | May 13, 2021 At `5.04 lakh crore, SBI MF occupies top position ICICI Prudential Mutual Fund has helped ICICI MF regain its registered in March. Director, Morningstar India, said regained its second spot in the position. the volatility and intermittent list of asset under management Akhil Chaturvedi, Head of Sales corrections in the markets on the as of April-end toppling HDFC In fact, the fund house came and Distribution, Motilal Oswal back of concerns over the MF. Interestingly, SBI Mutual unscathed in the recent debt Asset Management Company, intense second wave of Covid Fund with AUM of `5.04 lakh crisis that had rattled the mutual said the trend in equity market pandemic and its possible crore retained its numero uno fund industry last year, said NS last month was interesting with impact on the economy provided position. ICICI Pru MF recorded Satish, a Mumbai-based fund foreign institutional investors investors a good entry point in an AUM of `4.13 lakh crore while d i s t r i b u t o r. A l s o t h e d e b t turning net sellers and domestic April. HDFC MF’s stood at `4.08 lakh strategy to opt for AA-rated institution investors buying. crore last month. Previously, the papers over AAA has helped in difference between ICICI Mutual delivering positive investment Domestic investors showing Fund and HDFC Mutual was just experience for debt investors, he faith in Indian equities in such `1,000 crore. Aditya Biral Sun said. times would benefit from Life Mutual Fund, which is allocations at attractive gearing up to get listed on the Industry expands valuations, he added. stock exchange, has occupied Overall asset under mana- the fourth position with an AUM gement of mutual funds increa- Inflows to hybrid funds of `2.66 lakh crore while Kotak sed to `32.38 lakh crore last Interestingly, hybrid funds have MF ranked fifth. month against `31.42 lakh crore logged an overall inflow of logged in March. Recording the `8,640 crore with the arbitrage All-round focus helps ICICI second consecutive month of funds getting the highest inflow The focus on safe bets across positive inflow, mutual funds of `7,245 crore. debt, equity and hybrid schemes recorded a net inflow of `3,437 over the past one year has crore against `9,115 crore Himanshu Srivastava, Associate

\"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, MAY-JUNE 2021 Interview Bold calls drive this fund back to top quartile Wealth Forum | May 11, 2021 WF: Your fund has bounced and now talks of an inevitable the preferred set of names Prakash Gaurav Goel back into top quartile over the third wave? because of inconsistent, un- Senior Fund Manager last 1 year - is this attributable predictable performance and to value beginning to Prakash: Our bottom-up stock lack of moat. However, we have a ICICI Prudential Mutual Fund outperform growth - a factor selection approach helps us to different view here. If we that has benefited many of your ignore noise and focus on long juxtapose the slow economic decent allocation to cyclicals, fund house’s equity schemes? term intrinsic value. Today, it may growth seen over the past 5-6 service providers to metal sector, seem that value lies in healthcare years, then the performance of all of which are expected to Prakash: The factor which has names while sectors such as mid-size financials is explainable. benefit with a lag due to recovery aided fund performance over the hotels are value traps. However, seen in the metal sector. past one year is to spot mega we are of the view that today we Furthermore, when we see opportunities in pockets which have an opportunity to invest into recovery in metal and real estate WF: Over the next 2-3 years, are often ignored by the market great brands where assets are sector, the credit cost and NPA of which sectors within midcaps and by not getting carried away trading closer to its replacement banking sector tends to go do you see offering the best by the prevailing trend. Our stock value. In our process that’s a down. Hence, we have some of wealth creation opportunities? selection approach is bottom-up clear opportunity and the same is the best franchise in midcap and we are vigilant around theme reflected in our portfolio. financials in our portfolio. Each of Prakash: When it comes to concentration in order to reduce these names is trading at very wealth creation, entry and exit portfolio level risk. Mall operators in India have a attractive valuation. points in terms of investment, is unique moat which is reflected in of great importance. The blended approach driven by the resilience of their business We believe the concerns relating bottom-up research analysis model and we believe only to COVID impact are already Sectors like chemicals which in starts with identifying great strong companies can survive reflected in the valuations and as line with consensus assess- businesses to own that have through these turbulent times. the vaccination drive gathers ment, we believe has a bright reasonable valuations, growth pace the impact of covid on future, but in terms of initiating longevity and strong corporate Experts believe that a reasonable economic activity will be limited. an investment today, the space is governance standards. At the portion of the Indian population no longer attractive in terms of same time not ignoring stocks will be vaccinated by mid- WF: You are underweight in valuation. which could be temporarily out September and we believe metals and agri - two sectors of flavor (value opportunities), 2HFY22 and FY2023 will be year that are currently doing very We believe industries which is likely to aid in delivering when sectors such as con- well in the market. What is your have survived tough times suc- performance. sumption, mall-operators, hotels thinking on these sectors? cessfully tend to be more robust. and multiplexes with strong Hence we favour spaces such as As a result of this approach, we brand and balance-sheet may Prakash: We earlier had hotel, malls, multiplexes and have been thus far successful in emerge as the clear winners. reasonable exposure to agri financials, all of which has been tapping into opportunities, space but when valuations got affected by the pandemic. especially those with growth WF: Your exposure to banks stretched, we moved weights longevity and have proven to be and financial services to pockets which we believe Insurance is another sector wealth compounders. companies is significantly had a better upside potential. where we are positive as it is one larger than your peers. Is the Currently, we continue to have an of the very few pockets where WF: Some of your larger BFSI space now vulnerable indirect exposure to agri- we expect sustained long term holdings are in the hotels and considering the pandemic economy through lenders and high growth supported by low malls spaces - has the situation? tractor players. penetration, improvement in investment case for these market share gains supported by diminished with the advent of a Prakash: Traditionally, financials In terms of exposure to metal the recovery in overall economy. ferocious second covid wave in midcap space is not among companies, our portfolio has

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 9TARAKKI TIMES, MAY-JUNE 2021 ICICI Prudential Balanced Advantage Fund Armour against wild swings Hindu BusinessLine | May 02, 2021 If you are wary of taking the pure effective equity invest-ment level equity fund route amid the above 65 per cent with the current bout of market volatility judicious use of deriva-tives, but would like some equity ensuring tax treatment for the exposure, you can invest in a fund is akin to equity funds. hybrid product that takes a dynamic asset allocation app- Performance roach. The 14-year old ICICI Prudential Balanced Advantage The fund has outperformed is an ideal candidate because of Sensex in the 15 worst months its track record of riding out for the market since the fund's market volatility by maintaining inception. equity allocation levels based on valuations. In March 2020 when the index fell 23 per cent, in October 2008 Thus, investors can expect the when the index tanked nearly 24 fund to have a soft-landing even per cent, or January 2011 when it if the markets plummet. declined 11 per cent, the fund contained losses well. When to enter, when to add or cut exposure and when to exit In flat markets too, the fund has the equity market is easier said performed. When the index than done. To tide over this, the hovered around 30,000 levels fund uses a Price/Book Value between January 29, 2015 and (P/BV) model (from March 2010) April 7, 2017, the fund gained that allows 'buying low and sell- 8.75 per cent CAGR. ing high' while keeping human emotions aside. Between September 21, 2010 to January 30, 2013 when the The stock selection is a blend of benchmark Sensex was near large-and mid-cap stocks, with 20,000 levels, the fund gave 10 net equity level in the 30-80 per per cent CAGR. cent range based on the P/BV model. Derivative exposure is Even in years when the markets done for hedging/portfolio have risen, the fund has not rebalancing. In March 2021-end, failed to capture some upside. the fund had a net equity ex- posure of 38 per cent, compared to 74 per cent a year ago. Over the long-term, the fund's Fundas strategy has led to it losing less, which means winning more. The • Equity exposure fund has a 10-year CAGR of 12.23 based on per cent versus 11.25 per cent of valuations Nifty 50 TRI. • Derivatives for Besides, the fund boasts of a hedging/portfolio better show than like-sized cate- rebalncing gory peers in key risk metrics. The three-year monthly standard • Contains losses deviation of ICICI Prudential better Balanced Advantage (4.1) is close to category average and lower than peers such as HDFC Balanced Advantage (6.1) as per ACE MF. The fund's downside capture ratio at 54.2 is lower than category average of 57. This promises a relatively smoother investing experience. Besides, the fund has main-tained an

\"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, MAY-JUNE 2021 Fund Review Value funds shine as ‘growth’ trade fizzles Business Standard | May 05, 2021 A broad-based rally in the Indian extremely disciplined process. invariably over time leads to valuations are attractive. equity markets have helped strengthening of a case for a “We believe most of the cyclical value-focused funds deliver “Value fund like ours perform stock or sector. A long period of sectors represent good value till superior returns in the last one well when risk is adequately negativity creates the right the central banks tighten mone- year. Value funds were out of priced. In a macro setting where conditions for a sector or stock to tary policy. Within defensive favour as investors piled on to there is broad based economic outperform. sectors, pharma and IT represent ‘growth’ stocks even at lofty recovery and normal interest rate relatively better value compared valuations in the pre-pandemic environment, the equity returns Despite Sensex gaining by 43 per to consumer sectors,” said world, leading to sharp pola- are driven by earnings upgrade cent in the last one year and fund Naren. risation in the stock market cycles and not just liquidity managers believe even today returns. (flows). In such an environment, there are many sectors where stocks react to fundamental But in the last one year, value triggers and value funds tend to The data from MF Explorer funds have started delivering do better,” said Sorbh Gupta, shows that maximum returns as investors have shifted Fund Manager- Equity at returns generated by the their stocks away from growth Quantum AMC. value funds in the last one stocks to ones that are available year is 96 per cent and at attractive valuations. O v e r t h e p a s t y e a r, I C I C I average returns is 59 per Prudential Value Discovery Fund cent. Mutual fund (MF) industry pla- and Quantum Long Term Equity yers believe that even now there Value Fund have given returns of is enough value in the market. 61.2 per cent and 56 per cent, respectively. “We believe value is in the early stages of playing catch-up with According to the market partici- growth and quality which has pants, in the stock market, value significantly rallied over the past typically tends to emerge when few years. Also, several stocks investors fail to pay attention to public sector undertakings positives for a long time, which (PSUs) and others which have been beaten down names over the past several years, have caught investor attention due to their deep value have started rallying. All of this put together, has helped value funds gain traction,” said S Naren, ED & CIO, ICICI Prudential AMC. The data from MF Explorer shows that maximum returns generated by the value funds in the last one year is 96 per cent and average returns is 59 per cent. Value investing is largely investments in stocks that are undervalued and possibly ignored by investors but have room for appreciation in future. However, investing through value style differs from one fund house to another. In ICICI Prudential Value Discovery Fund the portfolio consists of stocks which have the potential for reasonable upside but are currently available at a discount to its fair/intrinsic value. While Quantum Long Term Equity Value follows a bottom- portfolio construction process. Their approach to investing is based on the principles of long- term value, detailed and an

\"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, MAY-JUNE 2021 ICICI Pruential Long Term Equity Fund (Tax Saving) Killing two birds with one stone Hindu BusinessLine | May 22, 2021 The ELSS fund helps investors meet the twin goals of tax saving and long-term wealth creation Investors following the old income tax predominately invests in large-cap stocks 5.9 per cent in it. It recently added sectors regime and having a moderately high risk and follows a mixture of growth and value such as insurance and entertainment to its appetite can invest in Equity Linked Savings investing. Currently, it has about 75 per cent portfolio while exiting media and services. Schemes (ELSS) to achieve the twin goals of of allocation to large-caps, 13.7 per cent to tax saving under Section 80C and wealth small-caps and 6.7 per cent to mid-caps. The The fund has been gradually increasing creation over the long term. These funds are dominant large-cap bias will act as a shield allocation to automobiles sector and also a good way to diversify your overall during intermittent bouts of market volatility. recently added Mahindra & Mahindra and equity allocation while their statutory lock-in Ashok Leyland to its kitty. Apart from these period of three years limits impulsive selling. The fund, while choosing stocks, focusses stocks, it has also added Dr Reddy’s on the fundamentals of the business, the Laboratories, SBI Cards & Payment Services With a portfolio biased towards large-caps, industry, the quality of management, and Bank of Baroda. One recent exit is ACC ICICI Prudential Long Term Equity Fund (Tax sensitivity to economic factors, the financial Ltd. Saving) has a good long-term track record. It strength of the company and the key has delivered 13.7 per cent annualised earnings drivers. It holds 62 stocks in the portfolio and the top returns over the past ten-year period, 10 stocks account for 43.5 per cent. Apart making it a suitable candidate for your The fund house continues to remain positive from the top four stocks, allocation towards portfolio. on sectors that are closely linked to the individual stocks is less than 3.5 per cent. economy — such as banks, capital goods, Top three sectors form 55 per cent of the Following a lacklustre performance in the infrastructure, metals and mining. Banking portfolio. Thus, the fund mitigates year 2018, ELSS as a category provided is the most preferred sector of the scheme, concentration risk reasonably well. average return of 8.2 per cent and 16.1 per followed by software. Private-sector lenders cent in the year 2019 and 2020 respectively. such as ICICI Bank, HDFC Bank and Axis Over the past year , the category has gained Bank have delivered good returns over the 70.8 per cent. This extraordinary return is past one year. due to sharp fall and subsequent recovery in 2020. The fund has slightly upped exposure in the pharmaceutical sector and currently holds Going forward, investors must moderate their near-term return expectations even though equity as an asset class is poised to deliver decent, inflation-beating returns over the medium to long term. ICICI Prudential Long Term Equity was launched in August 1999 and has delivered 19.6 per cent annualised returns since then. Over seven- and ten-year periods, it has delivered a CAGR of 12.8 and 13.7 per cent respectively, courtesy its growth investing approach. On a five-year daily rolling return basis since launch, the fund’s returns have been more than 12 per cent, about 75 per cent of the time. The average five-year rolling return of the scheme is 21.6 per cent. Since launch, the fund has outpaced its benchmark Nifty 500 TRI in terms of five- year daily rolling returns, about 82 per cent of the time. The fund has also contained downside well over the years. For instance, in 2018, it held the fort clocking marginal gains even as the category average return came in at a negative 6.3 per cent. Large-cap safety against volatility I C I C I Pr u d e n t i a l Lo n g Te r m E q u i t y

\"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, MAY-JUNE 2021 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Manu Mehrotra Mutual Fund Distributor Hand-holding the clients during volatile times is important! Manu Mehrotra had plans to join the Indian Army after completing his graduation from Delhi University in 1993. However, destiny had different plans for him. His father had been an advisor associated with UTI MF since 1970 and had once been the top UTI agent in Bihar then. With years of experience in various financial products, his father persuaded Manu to join his business. He wanted Manu to join his business to take care of the vast client base nurtured over the past five decades. While it was a tough call for Manu to let go of his dream to join the Armed Forces, he is satisfied and feels no regret for his decision now. Sharing his experience of the early days into the advisory space, Manu says, \"I had the privilege of learning marketing skills from my father. I also learned about interpersonal skills to help our clients understand money better and make better financial decisions. Since my father had a good client base, I did not face the challenge of acquiring new clients initially. He also taught me how to acquire new clients through references.\" Just like all the professionals, Manu did plan big for his advisory firm. He had witnessed his father's success as a Story from Rags to Riches, wherein he had to work day and night acquiring new clients, getting business, and providing after-sale service. Manu, however, made sure that while he aimed to grow his business, he would devote equal time to his family & my business. Manu acknowledges that while working with a relatively small set of clients, having a lesser income, he enjoys the biggest wealth of spending time with his family. At the same time, he ensures to work smartly to ensure that his financial goals are all achieved in time. In terms of providing client service, he prefers giving them advisory in their office/ residence and providing them with all services at their doorsteps, instead of calling them to the office. In addition, Manu shares, \"discussing their financial matters at the clients' place gives them enough comfort to share their concerns freely. This helps me to provide a suitable solution to their issues.\" From the very beginning, he had consciously decided not to market products of all/ many AMC's, which he continues till date. Manu recalls, \"I had made sure to be selective for mutual fund houses and schemes, for it allows me to review the schemes properly. As of date, almost 80% of my client AUM is with ICICI Prudential Mutual Fund.\" Manu feels the key to his success in the advisory space has been the quality of advice given to his clients. He also considers adding a personalized touch to the services keeping the clients' interest above his helps persuade them to continue to be his clients even for the next 20 years. While managing around Rs.120 crores of Assets Under Management (AUM), Manu has been a great advocate of dynamic asset allocation in the investment portfolio. He exclaims, \"A large part of my corpus is currently invested in Balanced Advantage Fund and Asset Allocator Funds, which takes care of prudent asset allocation for the clients without any manual intervention.\" Experiencing turbulent times during the market correction last year, Manu acknowledges that the most important function of the financial advisor is to hand-hold his clients during market rallies and market corrections alike. The client should not get overly exuberant and reckless about the higher returns from the equity markets in good times. In bad times, the client should not lose hope in the wealth creation potential of the markets. However, emotions often tend to take over during such times, as the investors tend to skew their investment portfolio to a particular asset class. During good times, they tend to prefer equities to chase higher returns, while debt is preferred during the bear markets in pursuit of safety. Manu regularly interacts with his clients, and the frequency of such interactions increases during volatile markets. Manu says, \"my main task is to talk to my clients, keep them motivated, show them a correct picture of what happened, why it happened, what to expect in future. I advise them with data in my hand, which gives them comfort and hope.\" ARN - 4924

\"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 13TARAKKI TIMES, MAY-JUNE 2021 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Ajay Kumar Singh Mutual Fund Distributor Ajay Kumar Singh, a Commerce graduate, had an inherent inclination to be in the advisory space. So he started working with some private companies and managing their accounts. Steadily, he started to gain more interest in financial advisory and took an insurance agency with the Life Insurance Corporation of India (LIC). Then, in a bid to diversify further into the financial space, he started his Mutual fund advisory. However, things were not simple then. There was a lack of financial awareness amongst people, and mutual funds were not popular. As such, convincing savers to turn into investors was indeed a tough task then. Ajay also had a tough time striking a balance between his job and gathering knowledge about his interest in advisory. However, with time and experience in the advisory space, things got much smooth for Ajay. His first clients came from his direct network, including his family, friends, and work circle. Their pleasant investment experience helped Ajay with word-of-mouth publicity from them, and his friends started referring him to their social network. He used to interact with his clients offline and inperson, allowing him to provide a personalized touch to financial advice. However, with the prevailing circumstances of social distancing and emerging preferences of the investors to have virtual interactions, Ajay is now using online tools to his advantage. Presently, Ajay is helping his clients with around Rs. 65 crores AUM (Assets Under Management) and makes them aware of financial markets and economic updates. Ajay shares, “I try to provide financial knowledge about current financial situations, availability of various investor-friendly initiatives like e-statements, etc., and spreading awareness about risk assessment. Investors are always interested when we talk about their interests and not ours.” Ajay feels the advisory space is a consistent learning journey, whereby one needs to constantly learn and evolve. Talking about his success journey, Ajay says, “I think there is no specific key to success in my case. Rather, I believe in constant knowledge gaining, sharing, and achieving every goal I set for me.” In volatile times, Ajay advises his clients to keep patience and continue investing with a positive mindset. ARN - 42500

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 14 TARAKKI TIMES, MAY-JUNE 2021 Channel Partners Distributor Insights Allocate your assets to sail through high tides A periodic review and rebalancing based on changing market conditions will help generate better risk adjusted returns Outlook Money | April 2021 Shashank Sekhar detrimental to one’s financial typed of asset class such as launched asset allocator funds Jalan health. As a means to keep equity, debt, gold, cash etc. The which take care of the asset investors keep away from such number of asset categories allocation needs. Such fund Jalan Financial Services action, asset allocation or asset selected for your portfolio and helps capture optimum alloca- allocation funds comes in handy. the percentage of portfolio you tion to debt and equity asset When it comes to creating long allocate to each asset class will classes based on the attrac- term wealth, one of the key Importance of Asset Allocation depend on a variety of factors tiveness of one asset class over factors aiding an investor in this such as investor’s tolerance for the other. Such schemes are journey is the principle of If one were to look at the risk, investment goals, how long actively managed by fund mana- maintaining asset allocation historical data of various asset one is planning to stay invested gers having expertise of equity discipline. Based on the principle classes, in terms of returns etc. and debt markets. In effect, such of diversification, asset alloca- generated, one can come to a fund addresses investors’ asset tion helps in limiting risks and generic conclusion that winners From a retail investor’s pers- allocation needs as per the reducing volatility in returns. (in terms of asset classes) have pective, getting all of these varying market conditions. kept on rotating over the years. aspects sorted and making An effective asset allocation can This is because various asset appropriate investments may The periodic review and re- be considered as one wherein classes perform based on not be an easy task. balancing which takes place appropriate allocation to the right market cycle, which is different from time-totime based on the asset class is made at a right for each asset class. Since determining an appro- changing market conditions will time. This is because in a market priate asset allocation is the help generate better risk adjus- cycle, at different points in time, For example, equity performs single most important invest- ted returns. different asset classes tends to well in expansionary economies ment decision because of its perform well. while G-Sec performs well in high impact nature, it is impor- At a time when the equity contracting economies. So, a tant to get this right. markets are volatile given the It is a known fact that investors judicious mix of asset classes or developments globally and in often tend to follow the herd a shift of allocation between For a lay investor not knowing domestic market and with the mentality. When the market is at asset classes holds the poten- much of any of these, the easiest pandemic raging in different a peak, looking at the stellar tial for a smoother investment approach is to consider investing parts of India and the world, for gains already made, investors journey. When this is consis- in asset allocator funds. Of not anyone looking to make lump- tend to rush into equities and tently followed over the years, for this option, seek the help of a sum investment, asset allocation when the market corrects and as the results can be astounding in financial planner who will help fund emerges as the go-to fear sets in, these very investors terms of the wealth generated. you reach the optimal asset option. Investors with a longer will start redeeming their invest- allocation as per your financial time horizon can also consider ment from the very same asset How to go about with asset goals. investing via SIP into these class they rushed into months/a allocation funds. year back. What is an Asset Allocation When constructing a portfolio, Fund? Such an action runs against the an investor has to ensure that the logic of equity investing of Buy portfolio consists of various Various mutual fund houses have Low, Sell High philosophy. Not only that the entire series of A judicious mix of asset classes or a shift of actions taken proves to be allocation between asset classes holds the potential for a smoother investment journey. When this is consistently followed over the years, the results can be astounding in terms of the wealth generated.

\"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 15TARAKKI TIMES, MAY-JUNE 2021 Distributor Insights Zero in on focused funds for higher returns A periodic review and rebalancing based on changing market conditions will help generate better risk adjusted returns Outlook Money | April 2021 Priyaanshu Agrawal financials, superior manage- stock holding. Diversified funds and large-cap companies. This ment, increasing product have lesser risks, but so do the provides the fund manager CA demands, sectoral re-ratings et return prospective. A focused flexibility to invest in undervalued cetera. fund is quite different from the companies across the whole The wisest investor of todays’ sectoral funds as well, as it is not market. times, Mr Warren Buffett, rightly That’s where the focused concentrated on one sector or said, “Wide diversification is only strategy comes in. Holding a theme. Further, the fund doesn’t have to required when investors do not smaller array of stocks is easier focus on a single sector for understand what they are to manage and track on a day- Sectoral funds have higher return investment. The fund manager doing.” Over diversification leads today basis and also challenging capability but risks are corres- skills and capability are brought to investing into all pockets of at the same time to select such pondingly higher too. Focused into sharp focus to identify the markets leading to average star stocks in this universe of funds can be called the middle sector ahead of the cycle, to returns rather than making equity markets. In the long term, ground between these two cate- generate outsized returns con- substantial allocation on the such categories out-perform due gories as it captures good sistently. This wide horizon for opportunities present. to their superior holdings and elements from both. Maintaining investment, lead to often the substantial initial stake in propor- an adequately diversified and yet fund having a low correlation to To gain above-average returns, tion to the portfolio size. In a way, concentrated with a certain limit. the markets. one must maintain a concen- this also reduces the opportunity trated portfolio of equities. cost of underallocating to good Given the cap of thirty stocks, the In the past year, focused funds Focusing on a few names, investment ideas. portfolio manager and his team have been able to outperform holding them with a clear sense of investment professional have with the average category of judgement and taking strong Connecting the dots, there are to undergo detailed study and returns have been above 70% bets, leading to the highest focused funds available for invest in stocks with high and as a result, it has caught the benefits. These selective investment. As per the SEBI conviction. They need to spend a attention of retail investor as companies have the potential to definition for the focused fund lot of time and efforts in picking well. One should remain careful deliver better returns than the category, the portfolio can have a the select stocks. These in-depth when investing in such funds as broader market and reward the maximum of 30 stocks. There- assessments, both on funda- the rise and fall can be sharp. shareholders due to their better fore, the fund manager has to mental and technical grounds, Hence, do check the consistency carefully select a few stocks, go a long way in ensuring only of the fund before investing and maintaining an optimal mix the best-ofthe- breed stocks while being invested in these across sectors and build a make it to the portfolio and in kinds of fund. portfolio that can perform well turn investors have chances to over time. It gives the fund earn better returns than the manager leeway to make a high broader stock market. allocation in high conviction names. As per SEBI’s directive, the fund manager is not bound by any A focused fund strategy differs particular size of the company. from a Diversified fund, which This no restriction means they has a larger and more varied can invest in small-cap, midcap In the past year, focused funds have been able to outperform with the average category returns have been above 70% and as a result, it has caught the attention of retail investor as well.

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 16 TARAKKI TIMES, MAY-JUNE 2021 Fund Review mint List of ICICI Prudential Funds in Mint 50BEST FUNDS Mint | May 2021 FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Corpus (Rs cr) EQUITY-LARGE CAP ICICI Prudential Bluechip Fund 10.31 13.88 12.71 26,468 INTERNATIONAL ICICI Prudential Global Stable Equity Fund 11.77 9.09 NA 94 ICICI Prudential US Bluechip Equity Fund 22.68 18.22 NA 1,282 FUND CORE Corpus (Rs cr) DEBT-ORIENTED 1-year return (%) 3-year return (%) 5-year return (%) CORPORATE BOND 8.89 8.65 8.10 19,146 ICICI Prudential Corporate Bond Fund ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | May 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 ICICI Prudential Nifty Index Fund - HYBRID: CONSERVATIVE 5.96 24.30 55.26 13.11 ICICI Prudential Regular Savings Fund 7.57 26.68 58.56 12.05 13.98 DEBT: MEDIUM- TO LONG-TERM 10.01 ICICI Prudential Bond Fund 2.18 6.74 17.47 8.92 8.06 DEBT: MEDIUM-TERM 8.00 ICICI Prudential Medium Term Bond Fund 0.59 1.15 8.77 9.02 - 1.54 3.06 11.03 8.31 8.10 9.17 ICICI Prudential Retirement Fund 0.64 1.47 8.88 - 8.10 DEBT: SHORT-TERM 0.88 ICICI Prudential Short Term Fund 1.11 2.11 9.29 8.56 DEBT: DYNAMIC BOND 0.94 ICICI Prudential All Seasons Bond Fund 2.30 9.15 9.26 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 2.02 8.95 8.67

\"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 17TARAKKI TIMES, MAY-JUNE 2021 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | May 2021 Scheme Name BL Rating Trailling Returns (%) 5 Year CAGR YTD Absolute 1 Year CAGR 3 Year CAGR ICICI Prudential Bluechip Fund 6.5 48.4 9.8 13.6 ICICI Prudential Large & Mid Cap Fund 11.3 56.0 8.4 12.5 ICICI Prudential Multicap Fund 9.9 52.6 8.8 12.4 ICICI Prudential Midcap Fund 13.8 77.1 7.2 13.9 ICICI Prudential Smallcap Fund 13.7 93.7 8.4 13.9 ICICI Prudential Focused Equity Fund 9.4 52.5 10.6 12.6 ICICI Prudential Value Discovery Fund 13.0 60.9 10.6 11.9 7.8 52.6 9.8 12.7 ICICI Prudential Long Term Equity Fund (Tax Saving) 10.0 60.7 3.4 11.3 ICICI Prudential Dividend Yield Equity Fund ICICI Prudential FMCG Fund 0.1 23.4 5.5 11.5 ICICI Prudential Infrastructure Fund 18.1 67.1 4.8 10.7 ICICI Prudential Banking & Financial Services 8.6 55.6 5.9 15.4 ICICI Prudential Technology Fund 11.3 114.3 26.1 21.4 ICICI Prudential P.H.D Fund 6.3 56.0 - - ICICI Prudential Equity & Debt Fund 13.3 47.1 10.5 13.5 ICICI Prudential Equity Savings Fund 3.9 19.0 7.3 8.6 ICICI Prudential Ultra Short Term Fund 1.4 6.3 7.1 7.5 ICICI Prudential Savings Fund 0.8 7.7 7.7 7.7 ICICI Prudential Money Market Fund 1.3 5.4 6.9 6.9 ICICI Prudential Short Term Fund 1.0 9.2 8.6 8.1 ICICI Prudential Medium Term Bond Fund 1.8 11.2 8.3 8.0 ICICI Prudential Bond Fund 0.4 8.8 9.0 8.1 ICICI Prudential Long Term Bond Fund -0.9 4.8 9.7 8.7 ICICI Prudential All Seasons Bond Fund 1.3 9.3 9.3 9.2 ICICI Prudential Corporate Bond Fund 1.1 8.9 8.7 8.1 ICICI Prudential Credit Risk Fund 1.7 10.0 8.6 8.3 ICICI Prudential Banking & PSU Debt Fund 0.9 8.5 8.2 8.0 ICICI Prudential Gilt Fund 0.3 6.6 9.7 9.0 ICICI Prudential Regular Savings Fund 2.0 16.3 8.8 10.0 ICICI Prudential Balanced Advantage Fund 4.6 32.8 9.6 11.2 ICICI Prudential Child Care Fund (Gift Plan) 4.6 34.5 6.6 10.4 Source: NAV India; NAV for the growth option as on 30-04-2021. 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.\" 18 TARAKKI TIMES, MAY-JUNE 2021 Awards OUTLOOK MONEY AWARDS 2020 Equity Fund House of the Year SILVER AWARD The Year 2020 was one of the toughest ones in our investing history considering the sudden appearance of Covid and a very volatile March followed by one of the biggest rallies in equity investing ever. We continue to think that investing will not be easy in equity in such a volatile world. We continue to look for right ways to invest other people's money in equity and other asset classes. S Naren ED & CIO, ICICI Prudential AMC GOLD Editor's Choice Award AWARD Leadership in Credit Risk Management I am delighted to get this Outlook Money Award for the second time. This award is a recognitiom of our efforts towards the entire credit risk process that we have created over the years. Manish Banthia Senior Fund Manager, ICICI Prudential AMC Editor's Choice Award SILVER AWARD Innovative Approach to Investor Education We, at ICICI Prudential AMC, have always believed that investor-centrism is the core of our existence. We are of the view that investor education is the first building block towards sound financial planning and financial independence. Aniruddha Chaudhuri Head - Retail Sales, ICICI Prudential AMC

\"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.\" Awards 19TARAKKI TIMES, MAY-JUNE 2021 LIPPER FUND AWARDS 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.\" 20 TARAKKI TIMES, MAY-JUNE 2021 Fund Review