Tarakki Times English January 2022

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS Professional Views MUMBAI | JANUARY 2022 | PAGES 11 Pg. 2 Investors should cut down on risk, I'm a patient investor follow multi-asset strategies Business Standard | December 22, 2021 Anish Tawakley Senior Fund Manager Pg. 3 Sense of déjà vu Business Standard | December 22, 2021 Economic Times | January 03, 2022 Manish Banthia Sankaran Naren Cycle: Business cycle in India areas where investors could Senior Fund Manager - Fixed Income ED & CIO has turned favourable, which is a have a negative experience is ICICI Prudential Mutual Fund major positive at this point of opting for IPOs without earnings, Pg. 4 time. Corporates have deleve- high leverage through deriva- Over the last decade, we have raged, the government's fiscal tives segment and ignoring asset Best debt fund managers witnessed easy liquidity condi- deficit is under control and the allocation by investing in equities tions and rate cuts by global non-performing loans cycle of only (ignoring debt, gold and Fortune India | January 10, 2022 central banks which in general the financial sector too are under cash). If your portfolio is over- created a conducive environ- control. The announcement of invested in risky assets, then it Pg. 5 ment for equity markets. More various government initiatives, appears a good time to cut that specifically, over the last one pertaining to infrastructure de- risk. Rather than focusing on a ICICI Prudential Corporate Bond year, owing to the abundant velopment and other areas, single asset class, opt for Fund Conservative approach, liquidity released by global indicate a clear intent by the strategies that allow to take consistent performance economies to tackle pandemic- government to support growth. exposure to multiple asset led growth challenges, most of Corporate earnings growth, too, classes. If you are considering Business Standard | January 10, 2022 the emerging and advanced has revived in a sustainable equity related investment, opt economies today are increa- manner since the later part of the for scheme categories that have Pg. 6 singly witnessing a shift from last fiscal year. the flexibility to invest across deflation to reflation. In a bid to market capitalisations and Balanced Advantage Funds Cut tame rising inflation resulting Triggers: The quantum and pace themes. Equity Allocation as Valuations from ample liquidity, central of the US Fed rate hike, trajectory Surge banks and governments have of the US 10-year Treasury Yields We are overweight on domestic- hinted towards a gradual with- and impact and severity of new facing sectors such as autos, Economic Times | January 20, 2022 drawal of excess liquidity from Covid variants are the major banks, telecom and some markets, a move which is likely to triggers to watch out for. defensive sectors that have Pg. 7 impact markets including India. corrected like pharma and ICICI Prudential new fund offer In this setting, when we look at Sentiments: Over the course of healthcare. We are underweight a passive core portfolio the Indian markets from a the last six months, investors on consumer non-durables as Economic Times | December 28, 2021 Valuations, Cycle, Triggers and have been investing in IPOs, we believe the cash flow of the Sentiment (VCTS) framework, including the aggressively priced lower strata of population is Distributor Insights India appears to be on a strong ones, which is worrying from a scarred due to the after-effects footing. sentiment angle. of the pandemic. For an investor Pg. 8 with a long-term view, we believe Get better equity allocation with Valuations: Valuations across Market View 2022 is the time for active balanced advantage funds asset classes remain elevated Equity markets may do well over management, long short stra- Outlook Money | November 2021 when compared to their res- the long term but we remain tegies, multi asset/asset alloca- pective long-term averages. cautious over medium-term tion strategies. Investors who Pg. 9 Whenever any asset class is fully prospects. Given the dynamic are likely to make money over the Asset Allocation: The key to sound valued, it tends to become environment, we believe that the year will be those who are sleep volatile. Our Equity Valuation current scenario sets the stage focused on asset allocation, Dalal Street Investment Journal Index highlights that valuations for active investment manage- invest in profitable companies January 13, 2022 are not cheap and recommends ment and multi-asset strategies, and invest across all asset equity investing only with a long- which is likely to provide better classes with liquidity after consi- Fund Review term perspective while strictly outcomes for investors in the dering risk and not ignoring it. adhering to asset allocation near term. Over the next year, the Pg. 10 framework. List of ICICI Prudential Funds in Mint ETW Funds 100 Pg. 11 List of ICICI Prudential Funds in Star Track Mutual Fund

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 2 TARAKKI TIMES, JANUARY 2022 Interview I'm a patient investor Business Standard | December 22, 2021 Steering clear of mediocre companies, even when available at a discount, has yielded rich dividends for Anish Tawakley A truism in tennis is that the needs to do is be patient,\" adds his portfolio in September 2021, Anish Tawakley winners are often the ones who Tawakley. compared to 6.24 per cent a year Senior Fund Manager make the least unforced errors. ago. The idea is that banking ICICI Prudential Mutual Fund Most players lose points to the Some of his patience is reflected growth will mirror the country's mistakes they make themselves in his turnover ratio of 0.19 as of economic resurgence. Banks Fund Manager of the Year rather than their opponents. ICICI September 2021. This means may not have been as valuable Prudential Asset Management that only `19 out of every `100 in when liquidity was ample. This LARGE-CAP EQUITY Company fund manager Anish investments are traded during situation will not persist inde- Tawakley's investment philo- the year. Put another way, the finitely. Banks that have a lot of across the market. Some of the sophy seems to mirror this average holding period of his money deposited with them will cyclical sectors - financials, sentiment. portfolio would be around five find the situation easier when capital goods...should see good years. Some of this is based on there isn't as much money earnings growth in a recovering An investor can do very well by making conviction bets on floating around as is the case economy,\" he says. avoiding the bottom one-third of winners. currently. Deposit franchises stocks by performance even if he become more valuable as or she doesn't necessarily hold Tawakley doesn't believe in the liquidity tightens. the top 10 per cent, says the fund investment strategy of finding manager for the ICICI Prudential growth at a reasonable price The pandemic was a challenging Bluechip Fund. His stewardship (GARP). He looks for a demon- time for picking stocks when won him the Business Standard strated track record of profi- businesses were affected across Fund Manager of the Year award tability, a top three market the board. Many companies for the Large-Cap category in a position and future compo- weren't making money. The way difficult pandemic year. He did unding ability in picking his to distinguish between busi- this while investing for a fund stocks. Going for the GARP nesses was to look at which of whose average assets under approach often excludes the top them had managed their debt, management was `27,097 crore two or three companies because other liabilities and assets well in the one-year period ending of high valuations. One is left enough to survive Covid-19. September 30, 2021. with middling companies, which Balance sheet strength became one buys only because they offer more important when there was \"I am not saying that I do not try to a more reasonable valuation. little visibility on earnings, says pick the companies that will end This also often translates into the fund manager who started up in the top 10...(per cent). I do mediocre returns, he suggests. out as a consultant in the 1990s, try to do that. The point is that advising large groups on the among the many strong com- A business that has grown large businesses they should retain panies that exist, it is difficult to enough to get listed is one in and the sub-scale ones they predict which ones will end up which scale matters. It makes should exit in a liberalised near the top in any given period,\" sense, therefore, to invest in economy. he says. scale; rather than smaller com- panies only because they are His advice to investors is to \"However, one can identify wea- available at a slight discount. If expect moderate returns in the ker companies or companies the companies are too expen- days ahead. \"However, we that are delivering unsustainably sive, then it may make sense to expect a significant divergence strong performance with a skip the sector entirely than buy greater degree of confidence. the laggards at discount, accor- And avoiding these companies ding to him. can make a significant contri- bution to fund performance. Tawakley's latest buys include a Eventually, the weaker com- big bet on the banking sector. It panies are exposed - all one accounted for 25.6 per cent of We expect a significant divergence across the market. Some of the cyclical sectors - financials, capital goods...should see good earnings growth in a recovering economy.

\"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, JANUARY 2022 Sense of déjà vu Business Standard | December 22, 2021 Keeping a cool head during a crisis has helped Manish Banthia outperform his peers Manish Banthia of the Infrastructure Leasing & Banthia and his team spotted an fund. It was 16.13 per cent in Senior Fund Manager - Financial Services (IL&FS) crisis. opportunity after tiding over the March 2020. This had risen to Fixed Income The collapse of the financing initial crisis. They began to add 34.09 per cent in September ICICI Prudential Mutual Fund company had affected the credit assets, essentially higher- 2020. It was at 14.78 per cent as mutual fund industry, which held risk bonds, in April and May of September 2021. Cash Fund Manager of the Year IL&FS group securities. This time 2020. The process by which positions went up in September MEDIUM- TO LONG-TERM it was Covid-19. The unprece- these decisions were made was 2021 to build defensive posi- DEBT dented shutting down of some to put people in a room and tions, he says. debt funds because of the debate so that all points of view Outperforming peers following a pandemic had put the industry in were processed. This was harder \"Normally, one can do it (build a crisis in the debt markets is an crisis mode. More than a year to do when people couldn't come defensive position) by buying act that ICICI Prudential Asset later, Banthia's outperformance to the office, but they managed. shorter maturity bonds. Howe- Management Company fund of his peers has won him another ver, the curve was so steep that manager Manish Banthia has award in the Short- to Medium- \"The idea of conducting huddles shorter maturity bonds were managed to pull off more than Duration category. is to force thinking before taking trading at extremely low yields once. actions. The IT (information and instead of providing defence He won the Business Standard He manages both the ICICI technology) infrastructure was could have resulted in higher Fund Manager of the Year award - Prudential Medium Term Bond set up in a manner that made risks for the fund. Hence, the Medium- to Long-term Debt Fund and the ICIC1 Prudential communication seamless. In a only way to create (a) defensive category in 2019 in the aftermath Short Term Fund. They had couple of days time, everyone.. position was to go overweight average assets under mana- (in)...the team was able to cash in the funds. Since then, the gement of `28,443 crore dur- adjust,\" he says. fear of Omicron has introduced ing the 12 months ending uncertainty in monetary policy September 30, 2021. There were regular meetings actions and therefore cash levels with the investment and the risk have been reduced In the fund,\" While the award is for the 12 management teams during this he says. months ending September 2021, challenging time. Things had it is essential to look at the started to cool down by October Banthia had said in 2019 that it events that preceded this period, 2020. pays off to be greedy when especially January-August 2020. others are fearful and vice versa. - The spreads remained normal in This has been a favourite maxim During the early part of 2020, March 2021. The second wave of stock market legend Warren when the pandemic struck and had no implications on credit. Buffett. Appropriate perhaps, the industry saw six debt Companies had already reduced that in addition to his fixed schemes shut down, the focus their debt to manageable levels. income responsibilities, Banthia initially was to ensure that there This was a period of relative started co-managing the ICICI was sufficient liquidity. This was calm. The volatility of the times Prudential Business Cycle Fund, a challenging time when the and the amount of active mana- an equity scheme in January lockdown was in effect. People, gement involved can perhaps be 2021. including Banthia and his team, seen in the level of government were working from home. One securities held in short-term way to gauge the fear in the market is by the difference in the yields for different bonds, and it had spiked significantly in those early days. \"...people were so scared... spreads were almost at their highest: he recalls. It pays off to be greedy when others are fearful and vice versa. This has been a favourite maxim of stock market legend Warren Buffett.

\"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, JANUARY 2022 Interview Best debt fund managers Fortune India | January 10, 2022 These fund managers focused on risk management to deliver in a low interest rate year Debt fund managers have had a three-year fixed deposit rate of He is the lead fund manager for process than creating alpha in a tough time navigating through a 6.8 per cent three years ago. nine schemes with assets of day because the fund’s life is low interest rate regime for the around `1,24,000 crore. Key debt more than the longevity of fund last couple of years. Amid the Banthia says the 2020 perfor- schemes that he manages have managers. A long-term approach tough times, Manish Banthia, mance was aided by AA-rated delivered 6.07-8.11% over last that meets the fund’s investment senior fund manager, fixed papers trading at 10-11%; these three years. requirement is needed,” says income, ICICI Prudential Mutual usually trade at 5-6%. “2021 was Goswami. Fund, has grabbed the top slot a challenging year. Against “Our investment philosophy is among debt fund managers in expectations, RBI could not raise around safety, liquidity and the Fortune India-Morningstar rates due to Covid-19. It has returns. We focus more on the study. resulted in a lot of liquidity. So, spreads are down,” he explains. Banthia manages over `70,000 crore across nine schemes, ICICI Prudential AMC has also mostly from the debt category. grabbed the second spot in the The prominent debt schemes debt fund category with Rahul that he handles have delivered Goswami, chief investment 6.47-9.19% returns over the last officer (CIO), fixed income, ICICI three years compared with SBI’s Prudential Mutual Fund. 2021 was a challenging year. RBI could not raise rates. It has resulted in a lot of liquidity.

\"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, JANUARY 2022 ICICI Prudential Corporate Bond Fund Conservative approach, consistent performance Business Standard | January 10, 2022 ICICI Prudential Corporate Bond safety and liquidity. has maintained modified dura- The fund has maintained a con- Fund, launched on April 5, 2011, tion in the range of 1.25 years to servative credit profile in the past has featured in the top 30 Good show 2.94 years averaging 2.09 years three years by predominantly percentile of the corporate bond in comparison with 2.37 years for investing in the highest rated funds category of CRISIL Mutual The fund has consistently out- the peers. After declining across debt securities. Allocation to Fund Ranking (CMFR) for three performed its peers (funds 2019 and 2020, yields of govern- AA+ and above rated securities consecutive quarters through ranked under the corporate bond ment securities have seen a averaged 75.09 per cent in the September 2021. The scheme funds category in CMFR in rising trend since December past three years. The average managed by Rahul Goswami, September 2021) over the past 6 2020 and the fund has main- exposure to highest rated debt Chandni Gupta and Anuj Tagra months, 1-, 2-, 3-, 5-, 7-, and 10- tained duration below 3 years to securities (including AA+ and since October 2017, August year trailing periods. reduce interest rate risk. above and sovereign) was 94.82 2016, and March 2020, res- per cent for the fund as com- pectively, has seen month- A sum of `10,000 invested in the Portfolio analysis pared with 89.38 per cent for the end assets under management fund on April 05, 2011 (inception category peers. (AUM) increase to `19,656 crore of the fund) would have grown to During the past three years, the in November 2021 from `3,428 `23,467 (8.25 per cent CAGR) on fund has predominantly invested The fund did not take exposure to crore in December 2018. January 6, 2022, compared with in non-convertible debentures securities rated below AA+ `23,050 (8.07 per cent CAGR) for (NCDs) and sovereign securities. during the period of analysis, The investment objective of the the peer group during the same The allocation to NCDs averaged while the category exposure to scheme is to generate income period. 72.81 per cent, while exposure to below AA+ rated securities through investing predominantly sovereign securities averaged averaged 3.31 per cent. in AA+ and above rated cor- Duration management 19.72 per cent in the same porate bonds, while maintaining period. the optimum balance of yield, Over the past 3 years, the fund The investment objective of the scheme is to generate income through investing predominantly in AA+ and above rated corporate bonds, while maintaining the optimum balance of yield, safety and liquidity.

\"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, JANUARY 2022 Interview Balanced Advantage Funds Cut Equity Allocation as Valuations Surge Economic Times | January 20, 2022 ICICI Prudential Balanced Advantage has trimmed it to 40-mth low of 31.5% in Dec, Kotak Balanced Advantage to 38% and DSP Dynamic Asset Allocation to 30% ICICI Prudential Balanced Fund managers decide equity has held an average equity 2020 when Nifty 50 hit a low of Advantage Fund, the second- valuations based on the trailing allocation of 54.2% since incep- 7610, leading to sharp increase largest dynamic asset allocation price-to-earnings (PE) ratio of tion. The fund had increased its in valuations. Nifty 50's PE ratio, scheme with assets of `38,000 Nifty 50/S&P BSE 100 and use equity allocation to 74% in which was at 17.15 times on crore, has reduced its equity other ratios like price-to-book March 2020 when the markets March 23, 2020, has risen to allocation to 31.5% in December, (PB) and dividend yield to decide tumbled after the pandemic first 24.76 times. In the same period, the lowest in the past 40 months, equity allocation. struck. The fund had an average the price-to-book value (PB), as equity valuations soared. allocation of 60% to equities in another important valuation Other popular funds in the space, calendar year 2020. However, in matrix which fund managers \"Our Equity Valuation Index too, have reduced their equity 2021, as equities soared and consider, has surged from 2.17 highlights that valuations are not allocations in line with rising valuations turned expensive, the times to 4.52. cheap,\" says Sankaran Naren, valuations. Kotak Balanced average equity allocation came chief investment officer, ICICI Advantage now has 38% in down to 37%. In the past one \"After 22 months of high returns Prudential Mutual Fund. \"The equities, while DSP Dynamic year, the fund has returned from equities, the markets could quantum and pace of the US Fed Asset Allocation has 30%. 16.41% and 13.94% in the past be volatile in the coming year. It is rate hike, trajectory of the US 10- Edelweiss Balanced Advantage three years. important for investors to protect year Treasury Yields and severity Fund, which follows a pro- downside, not to take high risks of new Covid variants are the cyclical approach, has a higher Naren said investors who focus and a balanced advantage cate- major triggers to watch out for\". equity component of 55%. on asset allocation, invest in gory works well in such a sce- profitable companies and across nario,\" said Viral Bhatt, founder, Balanced advantage funds invest The lowest equity allocation in all asset classes, will make Money Mantra. Bhatt said in a mix of debt and equity. ICICI Prudential Balanced money in 2022. investors could allocate 30-40 % Typically, they allocate less to Advantage Fund's history since of their portfolio to the balanced equities when market valuations its launch in March 2010 was Nifty has gained 136% in the advantage fund category. appear expensive and vice-versa. 30.13% in August 2018. The fund past 22 months since March 23, Nifty 50's PE ratio, which was at 17.15x on March 23, 2020, has risen to 24.76 times; PB has surged from 2.17x to 4.52x. ICICI Prudential Balanced Advantage Fund 85.0 56.0 Net Equity Exposure (%) 70.0 31.5 55.0 40.0 25.0 DEC 31, 2021 MAR 30, 2010

\"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, JANUARY 2022 ICICI Prudential new fund offer a passive core portfolio Economic Times | December 28, 2021 Multi Asset FoF invests across asset classes, but fund manager can choose to take dynamic calls Retail investors often face the correspond to the total return of Advisors. Dhawan believes innovative and low-cost global challenge of deciding how much the benchmark CRISIL Hybrid investors should not make a E T F, \" s a i d N a s s e r S a l i m , and when they should allocate to 50+50- Moderate Index (80% small allocation here as it would managing partner, Flexi Capital, a an asset and managing the weightage) + S&P Global 1200 not be meaningful and would boutique investment services allocation dynamically. Such Index (15%) + Domestic Gold defeat the purpose of asset firm. investors looking for a ready- Price (5%). allocation. \"Savvy investors made solution to build a low- capable of taking their own Financial planners say the fund, cost core portfolio holding can The FoF will use the VTT decision can allocate separately though passively managed, is consider the ICICI Prudential (valuations, triggers, technical) to each asset class and not use exposed to fund manager risk Passive Multi Asset Fund of approach to build the portfolio. this single fund.\" given the fund manager will take Fund. Valuation will ascertain whether a dynamic call on when to add or an asset class is expensive or \"The Passive Multi Asset FoF will subtract from an asset class and The fund of funds (FoF) will cheap based on various indi- be monitored by experts and will hence investors must come with invest in exchange-traded funds cators. provide tactical allocations to a a five-year horizon. (ETFs) or index funds through particualr sector through select, schemes that invest in equity, In terms of triggers, the FoF fixed income, gold, and tracks macro parameters, international equities. It can investment indicators, business allocate 25-65% to domestic and consumer sentiment and equity ETFs or index funds, 25- global factors, using which the 65% to domestic debt ETFs or fund manager will decide and index funds, up to 15% to gold identify the asset class and how ETFs and 10-30% to overseas much is to be allocated. Tech- ETFs and index funds. nicals help to select ETFs/Index funds based on their relative The new fund offer (NFO) is pen performance. and closes on January 10, 2022. Investors can make lump sum \"The fund can be a core portfolio investments of `1,000 or those holding for investors who do not looking to invest regularly can have the knowledge or skills to use a systematic investment individually allocate to each plan (SIP). The scheme will asset class,\" said Vishal Dhawan, provide returns that closely founder, Plan Ahead Wealth The Passive Multi Asset FoF will be monitored by experts and will provide tactical allocations to a particualr sector through select, innovative and low-cost global ETF,

\"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, JANUARY 2022 Channel Partners Distributor Insights Get better equity allocation with balanced advantage funds Within the balanced advantage fund universe, conservatively managed funds work well for a wide spectrum of investors Outlook Money | November 2021 or otherwise, one should con- with its tapering exercise. So, we However, the true test of the sider the balanced advantage could be in for some testing offering can be only gauged category of funds. Balanced times. across a complete market cycle. advantage funds (BAFs) are a Shalab Gupta Bibhab type of hybrid fund category that At a time when equity valuation is If you are an investor who is diversifies your investment expensive, it is best to take a looking for asset allocation, then Founder between equity and debt as per conservative approach to alloca- the prudent choice would be to Bibhab Capital the market valuations. tion. As a result, if you have consider BAFs that are conser- invested in a BAF which tends to vatively managed. In such a fund, Conservative investors are in a Through this offering, an investor have high allocation to equities, the equity allocation reduces as difficult situation. Low returns gets the opportunity to get a one could be in a tough spot the market valuation becomes may be fine, but nobody wants taste of the equity flavour while, when the market changes gear. expensive. This is done by book- negative returns. In a low interest at the same time, the downside Also, it does not hurt to be a bit ing profits in equity and deploy- rate regime, when the fixed is protected due to the presence prepared for any eventuality. ing the same in debt. deposit rates are hovering of debt in the Hence, it is best to opt for a BAF around 5 per cent and the portfolio. which is dynamically managed in Owing to this approach, an inflation rate is higher, con- a conservative manner. investor gets to truly ‘buy low’ versative investors are essen- Almost every fund house today and ‘sell high’. Also, such an tially losing their money as the has a BAF offering. Each fund There are several offerings approach ensures that your real rate of return is negative. house has its own unique within the BAF category and portfolio volatility is minimal This is at a time when most approach in terms of portfolio each is unique in the way it is even in case if the equity markets people are boasting of their creation and asset allocation. managed. Some of the conser- were to face a correction or there stock market returns. Some funds have aggressive vative funds follow a model is a spike in volatility. equity allocation while some based approach when it comes As investors, we often fall prey to others are conservative in to deciding on the asset class to To conclude, if you wish to invest our own behavioural biases. At a nature. Furthermore, many of invest into, while some others in the existing market scenario, time when the stock market is these offerings are model based are momentum based or largely opt for investing in a balanced steadily rallying, it is close to in an attempt to get the fund static in nature. In an up-trending advantage fund with lower net impossible to trim equity manager bias out of the way. In market like the one currently, equity level. allocation because the investor order for these schemes to have BAFs that have higher equity fears on missing out potential an equity taxation benefit, fund allocation seem to be better gains if the market rally managers rely upon derivatives placed in terms of performance. continues. and arbitrage strategies as a part of equity allocation. When equity valuation is Conversely, if any investment expensive, it is best to take a calls for booking losses, that WHICH TYPE OF BAF TO conservative approach to again turns out to be challenging INVEST IN? allocation. As a result, if you as one hopes that there will be a have invested in a BAF which change in fortune in the near Over the last one year, the Indian tends to have high allocation future. Because of our inability to equity markets have steadily to equities, one could be in a take decisions at such times our climbed every wall of worry on tough spot when the market portfolios tend to underperform their way and have broken new changes gear. in the long run. ground in terms of market highs. However, no one can be too sure So, be it a conservative investor of the road ahead. While the economy is on a mend, the persistent rise of inflation, along with the crude prices hardening, there could be some testing times ahead. Also, one does not know how the markets will react to any act of the US Federal Reserve starting

\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Channel Partners 9TARAKKI TIMES, JANUARY 2022 Distributor Insights Asset Allocation: The key to sound sleep Dalal Street Investment Journal | January 13, 2022 R.C.Rawal when all assets are performing will always aim to buy low and moving on, investors keep poorly. sell high. This means the fund holding on in the hope that Director manager will tend to increase the someday it will be a profitable Imperial International Pvt. Ltd. Combining these different equity exposure of the portfolio trade. assets ensures that the portfolio whenever there is a market When it comes to long-term created will complement the correction or at choppy times, Conversely, if there has been a wealth creation, it is a known fact strengths of these asset classes thereby aiding the buy low part. massive rally in a particular that optimal asset allocation is a while fixing the probable weak- As and when the market starts investment, investors find it very must. However, with greed and nesses as well. Furthermore, one recovering and when it rallies in hard to take profits off the table fear coming in the way of should consider debt and gold as the ensuing days, the fund for the fear of missing further successful investing, an investor a part of asset allocation as debt manager will sell some of the upsides. As the market tide often tends to go off the charted funds are the best option for an equity positions, thereby aiding turns, very often most of the path. One of the most important investor with a low risk appetite the sell high part and these gains gains tend to be wiped out in a steps to build a successful and the yellow metal is one of the are then allocated to debt. very short span of time, even portfolio is properly dividing best hedging asset classes and before investors could realise assets among different types of provides ample liquidity in Moreover, within equity the fund and make a move. investments. Because these adverse situations like periods of manager will allocate between investments perform differently economic crisis to bring stability small, mid and large-cap equity. Expert fund managers take a depending on economic condi- in a portfolio for diversification. Similarly, in debt the fund view by constantly evaluating tions, a good balance can help in manager will have his eye on allocation strategies, including, developing a strong portfolio As a means to address this government bonds, high-yield but not limited to, constant which can withstand a wide challenge, the Indian mutual bonds and the money market. weight asset allocation, tactical range of economic situations. fund industry introduced a hybrid Such an approach means that asset allocation, insured asset category fund known as dyna- while one gains from the equity allocation, dynamic asset Among the asset classes, equity mically managed asset alloca- market, the presence of debt allocation and lifecycle fund offers the best long-term growth tion scheme. ensures that the portfolio is well- asset allocation. prospects. Fixed income invest- cushioned to brace any bout of ments are a safer investment Making the Most of Market market volatility and limit port- Take Away with relatively lower returns Volatility folio downside. From an inves- while cash has a role to play tor’s perspective, one need not As an investor you should take It is a known fact that investors, worry about how much to allo- advantage of the availability of not only in India but also around cate to which asset class, when such a mutual fund scheme. This the globe, tend to get unnerved and what quantum to rebalance, will not just ensure that you have by market volatility. This leads etc. a reasonable asset allocation at investors to take decisions in a all times, but as a consequence, panicky state, which often are Addressing Emotional Biases will also result in optimal risk- disastrous to one’s own interest. adjusted returns for you. Further, Very often emotional biases such a fund can be considered as What is often forgotten is that impact investment decisions. an all seasons fund for investors. the ability to make dispro- For example, investors tend to portionate gains often stems hold to historical investment from such volatile times. The positions, causing them a loss. fund manager of such a scheme But instead of booking loses and As an investor you should take advantage of the availability of such a mutual fund scheme. This will not just ensure that you have a reasonable asset allocation at all times, but as a consequence, will also result in optimal risk-adjusted returns for you.

\"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, JANUARY 2022 Fund Review mint List of ICICI Prudential Funds in Mint 20BEST FUNDS Mint | January 2022 HYBRID 3-year return (%) 5-year return (%) Corpus (Rs cr) BALANCED ADVANTAGE ICICI Prudential Balanced Advantage Fund 13.09 11.76 37,012 DEBT Corpus (Rs cr) CDOEBRTP-OORRAIETNETBEODND 1-year return (%) 3-year return (%) ICICI Prudential Credit Risk Fund 6.04 8.41 8,373 ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | January 2022 FUND Value Research Returns (%) Fund Rating 6-month 1-year EQUITY: LARGE CAP ICICI Prudential Sensex Index Fund 3-month 3-year 5-year HYBRID: AGGRESSIVE (EQUITY ORIENTED) 0.82 - ICICI Prudential Equity & Debt Fund 1.34 14.05 24.82 19.72 HYBRID: CONSERVATIVE (DEBT ORIENTED) 1.11 15.67 ICICI Prudential Regular Savings Fund 0.08 17.33 42.48 20.19 9.56 DEBT: MEDIUM- TO LONG-TERM 0.70 6.76 ICICI Prudential Bond Fund 0.54 6.21 10.04 10.44 7.19 DEBT: MEDIUM-TERM 0.34 7.02 ICICI Prudential Medium Term Bond Fund 0.53 1.72 2.35 8.25 7.21 DEBT: SHORT-TERM 7.27 ICICI Prudential Short Term Fund 2.42 5.19 8.26 DEBT: DYNAMIC BOND ICICI Prudential All Seasons Bond Fund 1.98 3.62 7.95 DEBT: CORPORATE BOND ICICI Prudential Corporate Bond Fund 2.00 3.89 8.64 2.11 3.84 8.03

\"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, JANUARY 2022 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | January 2022 Scheme Name BL Rating YTD Absolute Trailling Returns (%) 5 Year CAGR 4.9 1 Year CAGR 3 Year CAGR 16.6 ICICI Prudential Bluechip Fund 6.3 15.9 ICICI Prudential Large & Mid Cap Fund 4.5 28.3 19.5 15.5 ICICI Prudential Multicap Fund 4.3 41.5 21.7 17.3 ICICI Prudential Midcap Fund 4.6 35.5 18.4 19.4 ICICI Prudential Smallcap Fund 4.4 42.1 22.3 15.7 ICICI Prudential Focused Equity Fund 5.1 61.5 32.3 15.8 ICICI Prudential Value Discovery Fund 4.4 31.6 21.5 16.3 ICICI Prudential Long Term Equity Fund 34.5 22.0 (Tax Saving) 4.8 31.4 20.0 15.3 ICICI Prudential Dividend Yield Equity Fund 2.5 14.8 ICICI Prudential FMCG Fund 7.0 46.1 20.3 14.4 ICICI Prudential Infrastructure Fund 6.8 18.6 11.5 14.4 ICICI Prudential Banking & Financial Services 0.1 48.1 20.2 34.5 ICICI Prudential Technology Fund -0.9 24.2 12.3 ICICI Prudential P.H.D Fund 4.9 63.6 44.8 - ICICI Prudential Equity & Debt Fund 0.7 13.6 27.7 16.0 ICICI Prudential Equity Savings Fund 0.2 39.5 21.1 7.6 ICICI Prudential Ultra Short Term Fund 0.1 8.4 8.5 6.6 ICICI Prudential Savings Fund 0.2 4.1 6.2 7.0 ICICI Prudential Money Market Fund 0.0 3.8 6.9 6.4 ICICI Prudential Short Term Fund -0.1 3.8 5.8 7.0 ICICI Prudential Medium Term Bond Fund -0.4 3.8 7.9 7.2 ICICI Prudential Bond Fund -1.0 5.3 8.2 6.7 ICICI Prudential Long Term Bond Fund -0.2 2.5 8.0 6.4 ICICI Prudential All Seasons Bond Fund -0.1 -0.5 7.3 7.2 ICICI Prudential Corporate Bond Fund 0.0 4.0 8.5 7.2 ICICI Prudential Floating Interest Fund 0.3 3.9 7.9 7.0 ICICI Prudential Credit Risk Fund -0.2 4.1 7.8 7.7 ICICI Prudential Banking & PSU Debt Fund 6.3 8.4 6.7 3.9 7.6 ICICI Prudential Gilt Fund -0.9 2.7 8.6 6.7 ICICI Prudential Regular Savings Fund 1.5 10.6 10.6 9.7 ICICI Prudential Balanced Advantage Fund 1.9 14.8 13.4 11.7 ICICI Prudential Child Care Fund (Gift Plan) 2.6 21.2 14.5 12.6 Source: NAV India; NAV for the growth option as on 14-01-2022. Past performance may or may not sustain in the future. It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.