Tarakki Times English Oct-Nov 2018

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS Professional Views MUMBAI | OCT - NOV 2018 | PAGES 13Pg. 2Valuation No Longer Investors must be patient.The Problem For Here's whyIndia StocksRemain positive on Hindustan Times | November 06, 2018banks due to NBFC crisis Nimesh Shah ment is close to zero. digit returns. Stretch the invest- S Naren, ED & CIO MD & CEO ment horizon to 10 years, then ICICI Prudential Mutual Fund ICICI Prudential Mutual Fund FOUR YEARS PAY OFF MORE the SIP investor has a 77% An up-trending market is every chance of making over 10%Pg. 3 Over the last four years, retail investor's dream, given the gains. investors who have come into double digit return expectationNBFCs faced asset- equity through systematic but volatility is the by-word in the STAY INVESTED ACROSSliability mismatch, investment plans (SIPs) and market. If you are thinking of the MARKET CYCLESgetting corrected by otherwise have had a good run. return profile you can expect Time in the market is morebanks’ lending to them But off late, markets have turned from long-term investing, the important than timing the volatile and many of these following numbers can be market. As per the VR findings, Nimesh Shah, MD & CEO investors are having second ICICI Prudential Mutual Fund thoughts about their invest- ments. After all, the only thingPg. 4 that dissuades us from invest- ment is the idea of negativeIn 2019, invest in a returns. Last year, Value Re-systematic manner search (VR), an independentand accumulate mutual fund research house, did an analysis of SIP performance S Naren, ED & CIO of diversified equity funds based ICICI Prudential Mutual Fund on actual returns from 1992 to 2017. During this period, there Tarakki Insights were two major bear markets inPg. 5 2001 (dot com bubble) and 2008Past performance is no guarantee (global financial crisis), andof future results multiple bull markets in 1999-Shweta Jain, Founder & CEO 2000, 2004-2007 and 2014-2016. The analysis put forth interestingInvestography Pvt. Ltd. observations regarding SIP investment. Tarakki CornerPg. 6 REWARD OF BEING PATIENT considered as indicative in investors who initiated their SIP Whenever a conversation around nature. In the VR analysis, to investment at the peak of 2007,Ajay Bakshi mutual fund comes up, market understand the chances of mak- found that 60% of the SIPs made experts and financial advisors ing double digit return, they had broken even at the end ofAdvisory, Secura Finvest tend to point out the virtues of filtered SIPs across time periods two years. Further, by 2011, 99% long-term investing and being that delivered a minimum of 10% of the investors would have Fund Review patient through the investment return. The research found that if earned from their investments journey. The reason for this, as you continue SIP for four years made at the peak of the market.Pg. 7 shown by VR's number crun- and more, there is at least a 62% This clearly shows that one need ching, is that SIPS across diver- occurrence of making double- not worry about market volatilityICICI Prudential Midcap Fund sified equity funds over a 10-yearBetter downside protection period yielded negative returns Contd. on page 4 in just 0.3% of the cases. Further,Pg. 8 if one is ready to stay invested for four plus years, there is at least aICICI Prudential Short Term Fund 90% chance of positive return. IfA stable short-term fund, with the SIP investment were tofocus on liquidity continue for a decade, chances of being in a loss-making invest-Pg. 9ICICI Prudential Regular SavingsFundConservative in risk, consistentin returnsPg. 10Just A Handful Of Fund HousesShow Consistent Top QuartilePerformanceThe Mutual Fund ShowThis Asset Manager ToppedCrisil’s Ranking And How…Pg. 11List of ICICI Prudential Fundsin MintSIP Top UPPg. 12ETW Funds 100Systematic Investment PlansPg. 13List of ICICI Prudential Fundsin Star Track Mutual Fund

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.2 TARAKKI TIMES, OCT-NOV 2018 Interview Valuation No Longer The Problem For India Stocks Bloomberg | Quint | October 30, 2018S Naren investors flocked to the nation’s when you can be massively due to a sovereign decision orED & CIO securities, attracted by the overweight on equities.” consumption reducing becauseICICI Prudential Mutual Fund fastest growth among major of higher costs, he said. economies. However, surging oil Naren said small caps offer “Corporate-focused banks willA couple of months back prices, a plunging rupee and better reward among equities, do better because we have had ainvestors had a tough time growing financial concerns albeit at higher risks and with period where retail lending hasdeciding whether to invest in about non-bank lenders have no clear recovery timelines. done well.”Indian stocks trading at rich soured sentiment in the last However, the risks are lower thanvaluations. That problem no couple of months. what they were a year ago. The non-banking financial sector,longer exists, according to Moreover, barring a few stocks, according to Naren, has a hugeIndia's largest asset manager. According to Naren, India the valuations too look a lot more scope to correct. “Some of the requires a meaningful correction reasonable. NBFCs have grown over 30\"Today the problem is outlook, in U.S. stocks, which would percent for the last 5-6 years andnot valuations,\" said S Naren, trigger an emerging market rally. Naren said the consumption for them to raise resources toexecutive director, and chief Without a turn of sentiment in sector will experience a slow- continue growing at 30-40investment officer at ICICI the U.S., he said, a bulk of the down in the near term as India’s percent will be a challenge,” hePrudential Asset Management money would go there. “A lot of trade deficit rises. “When you said. That's not all. “Unless theCompany Ltd., which oversees money has found its way to the (India) have a trade deficit of $15 U.S. starts easing, which couldabout $42 billion. U.S. and … market participants billion per month, you must happen only over the next three there must believe the Fed is reduce your imports, which years, the constraints on localIndian stocks have been Asia’s done with rate hikes.” means you end up slowing con- liquidity could last.”top performers until recently as sumption.” The ICICI Prudential The silver lining, according to AMC, he said, is focusing on Naren said that a major Naren, is that volatility is a better sectors that cater to import correction in the rupee has taken time for investing. “We’re not in substitution and exports. place, which will see an uptick 2008,” he told BloombergQuint only “if we’re able to see a in an interaction, referring to the This would likely benefit the slowdown in imports and if oil global economic crisis. “We manufacturing and financial keeps correcting”. Despite being won’t have a big vertical fall, but sectors. India can’t have such a positive on the IT and markets can remain undervalued high trade deficit and the pharmaceutical sectors, he said for some time. Hence, this isn’t slowdown will happen-either valuation concerns persist due to which it’s difficult to see a huge upside in these sectors. However, he was contrarian in his views on public-sector undertakings, as many such organisations have come down to “good valuations and deserve a look at”. The telecom and metals sectors and corporate-facing banks with decent deposit franchises, according to him, were good bets. “There has been no new capacity for metals and they serve as great import substi- tutes. The sector benefits from the dollar-rupee move.”Remain positive on banks due to NBFC crisisCNBC TV18 | October 31, 2018S Naren, executive director and He further added that he was nor is it cheap, said Naren. was not easy to make money onCIO of ICICI Prudential AMC, on reasonably positive on IT sector a big way but people whoWednesday said that he was as well. Talking at length about market, invested in the market in 2011-13positive on banks even as the Naren said, “We are in 2011-13 phase actually made most of thenon-banking financial companies We are in-between zone where kind of phase in market; if you money.”(NBFCs) continued to struggle. neither is the market expensive look at that zone in the market, it

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Interview 3TARAKKI TIMES, OCT-NOV 2018NBFCs faced asset-liability mismatch,getting corrected by banks’ lendingto themBusiness Standard | November 05, 2018In an interview to Indian Express, Nimesh Shah, who manages assets worth over ` 3,10,000 crorespoke about a host of issues relating to mutual funds, markets and the economy.NIMESH SHAH, Managing like in any other sector from time owing to quarter end. In the Nimesh ShahDirector & CEO of India’s largest to time. month of October, it is likely that MD & CEOfund house, ICICI Prudential there will be sizeable inflows intoAsset Management Company, What should be the strategy of this category of schemes once ICICI Prudential Mutual Fundsays some NBFCs faced an investors during periods of again.asset-liability mismatch which is high market volatility? which can help investors navi-getting corrected by banks’ What is your take on the recent gate volatile times with ease. Onlending to them. In an interview For novice investors, the best changes in the total expense the liquidity front, the MF regu-to GEORGE MATHEW, Shah, strategy is to invest in balanced ratio? How are your distri- latory framework is very robustwho manages assets worth over advantage category of funds butors taking it and what and there has been no majorRs 3,10,000 crore spoke about a during volatile times. Whatever changes are you planning at issues pertaining to liquidityhost of issues relating to be the market levels, such funds your end in terms of product since 2008.mutual funds, markets and the would invest across equity and structuring and designing?economy. Excerpts: debt, based on their relative How do you read the global and market valuations of the asset We believe the recent reduction domestic economy, especiallyHow do you see the current class. For example, in the case of in total expense ratio is a positive the impact of high crude pricescrisis of liquidity for NBFCs and balanced advantage fund, during development for the investor. and weak rupee?HFCs? While it was initially February 2016, when the Sensex Over the years, we have seenseen as a short-term issue, the was at 23,000, the equity that any development, in which On the global front, higher oilliquidity issue continues to roil exposure in this scheme was at the investor stands to benefit, prices, rising trade protec-the markets and there are 76 per cent. On the other hand, has proven to be beneficial for tionism, and unwinding ofconcerns that if the situation when the markets rallied and the the industry in the longer run. quantitative easing by centraldoes not improve, some of Sensex had touched a peak of When expenses reduce, we banks remain the top concerns.them may find it hard to 38,920, the equity exposure was expect the volumes to increase Domestically, commitmentsustain. How is it hurting the as low as 30.13 per cent, thus manifold. towards fiscal discipline andinvestment fraternity? effectively cushioning the consolidation in an election year investor in the ensuing market The focus has to move from are all factors which the marketsThere is no fundamental issue. correction. margins to being a volume will be closely following. In termsSome NBFCs faced an ALM business. Here, distribution has of the impact of high crude oilmismatch which is getting Now when the market has seen a key role to play given that price, India meets over 80% of itscorrected by banks’ lending to some correction, the equity mutual fund remains a push oil requirements via imports.them; a conversion of short term allocation has gone up slightly. product. Therefore, for thedebt raised by mutual funds to So, this strategy of managing manifold growth of industry, a According to experts, for everylong term debt with the banks. risks on either side of market strong and vibrant distribution $1 rise in crude oil price, theNBFCs have over past 3-4 years excess has helped our investors. community is imperative. corresponding impact on currentwitnessed significant growth For investors who wish to invest account deficit is to the extent ofand when anything grows at in debt only, credit risk fund is the Do you think the MF industry $1 bn. So, any surge in crude oilsuch a fast pace, there is a category of choice. As the name will be able to sustain the price is bound to adversely affectlikelihood of some issues to suggests, these schemes look at growth in the wake of market India’s twin deficits - fiscal andarise. the financial papers in the debt volatility and liquidity crunch? current - along with currency. All market, typically corporate of these will ultimately impactMFs have high exposure to bonds, and invest predominantly The future of MF industry interest rate environment andNBFCs and HFCs and the sharp in AA and below rated corporate remains promising because consequently capital markets.decline in their share prices bonds. For those looking to mutual fund as an investmenthas pulled down the MF invest into equities with a time product continues to remainperformance significantly. How horizon of 5 years and plus, can under-penetrated among Indiando you plan to tackle this consider SIP in mid and small- households. Increasingly, thesituation? cap schemes. industry is going the digital way thereby improving efficiency inAs a fund house, we had an Liquid funds witnessed an terms of both time and costunderweight stance on this outflow of ` 2.11 lakh crore last involved, and over time the fundsector. This is because over the month. Can you explain how it houses have proved its ability tolast three years the players in this happened? manage large pool of money.segment had witnessed a sharprally and many of the names The net outflows are largely on From time to time, as per thewere in the expensive zone. The expected lines as in the month of evolving needs of the Indiancurrent correction playing out in September there are advance tax investors, the industry has craf-this space is a normal correction payments and banks also ted products such as balancedseen in an expensive pocket, just liquidate their liquid fund holding advantage category of funds

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.4 TARAKKI TIMES, OCT-NOV 2018 Interview In 2019, invest in a systematic manner and accumulate ET Wealth | December 03, 2018S Naren systematic manner and accu- better for investors to go for savings of roughly `2 lakh croreED & CIO mulate through products like accumulation using SIPs and in our import bill. This will bringICICI Prudential Mutual Fund SIPs and STPs as those models STPs in 2019. They can also down inflation, reduce pressure work better in volatile years. invest through categories like on the currency and supportHistorically, election years are balanced advantage and equity financial stability.volatile for Indian markets. What is the second important savings funds. If crude prices coming down isSystematic investment plans factor? good for the economy, why isand systematic transfer plans What are your segmental views the current situation not sowork better for investors in such Continued rate increase by the now? positive?situations, Sankaran Naren tells US Fed is the next big headwind.ET Wealth. We are now in a phase where Our earlier large-cap bias helped When oil goes up significantly, oil both the US and Europe have us because the recent correction exporting nations start investingYou were cautious on the stock stopped printing money. With US was largely in mid- and small- in emerging markets like India.market earlier. What is your rates going up, money will keep caps. As a result, the worry about On the other hand, when oilstance now? going to the US and conse- overvaluation in mid- and small- prices slump these nations quently there may not be much caps has also come down. withdraw money from theWe have shifted from being allocations to emerging markets Across market cap segments, on markets like India by selling theircautious to cautiously optimistic. like India. That is why we are an average, valuations remain stocks.But we are still not in a thumping keeping our near-term outlook as slightly above average. Just likethe table bullish mode. neutral to mildly positive. the large-cap space, we see Some PSU banks are still opportunity in the mid- and reporting losses. Will theThe market mood has changed Your base case view is that US small-cap spaces now as there corporate NPA issues dragsignificantly in the last few will keep on increasing rates? are pockets that are cheap while further?months. What are the factors some continue to remainstill forcing you to be cau- Yes, and if that changes, you can expensive. In other words, we We are of the view the NPA cycletiously optimistic? turn clearly positive on Indian have shifted from a large-cap has bottomed out. We have equities. If the US Fed states that bias to a multicap bias now. more of corporate facing banksI agreed that there is a significant rate hike is over in its next in our portfolios now. Regardingchange in the market mood. In meeting, then emerging markets If all segment valuations are the losses, lot of it is because ofSeptember, we feared quite a including India are likely to head not cheap, what kind of returns NPA provisioning recognisedfew things, but most of those towards a bull market. However, should one expect in 2019? earlier. The operating profits offears are gone. However, two this situation is unlikely as per corporate banks are steadilymajor factors are still loaded our assessment. Since the US We are in a middle territory improving.against our market now. economy is doing well, they because the current valuation is need higher interest rates. slightly above its long term What is your debt marketIs the upcoming elections the High valuation was one reason average. It means that the outlook?first one? for your earlier caution. Where downside risk has abated, but is the market placed in terms of the immediate upside potential We have been positive on debtHistorically election year in India valuations? is not very high in percentage and continue to remain so. Theis volatile. If you look at the last terms either. So, an investor returns of all the moderatethree general elections, all were Our valuation-based caution and should invest in 2019 with near- duration funds are good. Thevery volatile years for the market. keeping higher cash component term moderate return expec- yield differential between G-SecSo we see 2019 as a year where helped us to buy during Sep- tation but with a clear three-year and AAA is placed now at 90 bpsinvestors should invest in a tember-October when major view. Sizeable returns will be for both three-year and five-year indices corrected by around made only when the US interest buckets and the gap is much 15%. The broader market rate cycle finally turns. more for AA and A papers. I think valuation too has corrected and What about the recent cut in the debt risk is overblown in is now close to its long-term crude oil prices? Will it not many of the sectors and the high average, so you can term it as improve market outlook? risk spread prevalent now may moderate valuation. If the come down in coming months. valuation was cheap, you could The fall in crude price is an have a larger allocation to extremely positive development equities. Since it is moderate, it is for India as it will translate into aInvestors must be patient. Here's why Contd. from page 1if the investment is made with a financial advisor. This is because mance and can add thrust to your benefit from the power oflong-term horizon. What is an advisor is best placed to overall portfolio gains. To con- compounding and averaging. Toimportant is to stay invested access your financial needs and clude, the simple act of invest- top it all off, you cultivateacross market cycles and make it recommend a product that can ing through SIPs over long discipline.work to your advantage. match your requirements. The durations can do wonders as it journey does not end there. forces you to invest small Nimesh Shah is the managingINVEST BUT WITH GUIDANCE Reviewing one's investment amounts in a disciplined manner. director and chief executiveAs an investor, if you are not well decisions at periodic intervals is Little drops of water make theversed with the various invest- another activity which is equally mighty ocean. In the same officer (CEO) of ICICI Prudentialment products available, it is important. A good scheme will manner, long wealth can be Asset Management Co Ltd.best to seek the guidance of a provide a top quartile perfor- created SIP by SIP. In effect, you

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Tarakki Insights 5TARAKKI TIMES, OCT-NOV 2018Shweta Jain \"Past performance is no guarantee of future results”Founder & CEO This is a disclaimer you and we haveInvestography Pvt. Ltd. not only seen, but also have told our investors, our clients whilst still showing the past track record. Why is this a bad idea to recommend products based on their past track record. Because we may be exposing our clients to the risk of under- performance. By showing them high returns, in their head they visualize the same rosy picture of what they can expect irrespective of whatever we say. The visual numbers matter much more than what we say as disclaimer or warning or even to set expectation.So, then how should we recommend products?What do we talk about? Well, we don't claim to have all the you. Once you understand him/her, you answers to that one, but we talk about the can then remove the relevant gear from style of the fund manager, the strategy of your armory and show them why you the fund, the strength of the fund house, recommend what you do, it also clarifies the process, the discussions with the your understanding of them and the fund manager and to whom we re- clarity of why you recommended what commend this scheme and to whom I you did helps them immensely. This one wouldn't. quality instills the much needed confi- dence, that will help them stay invested Such discussions intend to convey to our in the markets when times go bad (and clients that we understand the product, they will). the risks involved, their financial goals and the relevance of the schemes with We also talk to them about how much risk the financial goals of the clients. It also they are undertaking by investing in it in shows how in case we see any action is the short term, but why the taking the required to be taken by them on their volatility risk is worth it in the long term. portfolio, we are the ones reaching out to We also talk about how we have aligned them. We show here that we understand sending reports once in a quarter or our product, the market and most having a meeting once a year so that we importantly, we understand the custo- actually talk about things that matter mer. Because we also talk about who this rather than where I think the market will product suits and who it doesn't, it gives be at the end of the month. them the much needed confidence that they need to build in an advisor who will We also admit that more meetings lead to help them navigate this area of their life more action on the portfolio, which isn't a that they know very little about; that if good thing. The more we see the something goes amiss here, their whole portfolio, the tendency is do something; life could go upside down. because we want to be in control (though we are not) and because we don't want to Recommendation of the schemes must stay put. We mistake movement for be made only after having discussion progress and building trust is our last with them in this regard. This is helpful priority. You don't close a deal with because you both can understand each signed application forms and cheques, other's mindset and point of view too. If you close a deal every time the client you go armed with recommendation asks you to be his trusted friend, advisor, before you even know/ understand the voice of reason who he knows will him/her, how would that help either of always act in his best interest.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.6 TARAKKI TIMES, OCT-NOV 2018 Tarakki CornerYour YTouar Tarraakkki CkorineCr orner TARAKKI SUCCESS STORY NOVEMBER 2018 Ajay Bakshi Advisory, Secura Finvest Quality Advisor of Tri-cityThe success of a man can be understood from the journey he undertakes during his lifetime. Ajay Bakshi, the founder of Secura Finvest, has had asuccessful career prior to starting his own venture. With 14 years of experience in hand, Ajay has worked in various corporates including Puma,McDowell, Coca Cola, Airtel, etc. A graduate of St.Xavier's Mumbai, Ajay went on to complete his post-graduation in marketing management fromthe prestigious Jamnalal Bajaj Institute, Mumbai.Although a sales and marketing professional, he was keening about investing. In 2004, he decided to venture out on his own and started aninvestment advisory firm along with his wife Devika, called Secura Finvest. Located out of Mohali, the Mumbaiker had targeted the tri-city areas ofChandigarh, Panchkula and Mohali based on the potential in these areas.With a focused approach, Ajay targeted doctors working in a nearby hospital. The first lump sum investment of ` 25 lacs from a client gave himimpetus to grow in this business. Initially aligned with Franklin Templeton Fund house, Ajay has marketed all of the mutual funds in India. He firmlybelieves in doing justice to his investor's portfolio and advises them accordingly. He never compromises on the quality of advice and aligns theschemes as per the client's goals and requirements. ICICI Solitaire distributor and FT Platinum distributor, he makes it a point to nevercompromise for sake of commission or targets.The secret of his success is two-fold. First is his ability to understand his customer and second to recommend the apt scheme. This, he says, isbased on his independent research and tracking of the various schemes which he recommends. Tracking gives him an added advantage ofpredicting the performance and thereby safeguarding his client's interest.Presently Secura Finvest has AUM of ` 45 crore which a target of reaching ` 200 crore within a span of 5 years. With a SIP book size of ` 36 lakhs,Ajay is working very hard to grow it to a robust ` 1 crore in the future.Most of his clients are retail investors and his advise to them it to invest regularly based on the risk appetite. And investing is a science so it is vitalto respect data. His honesty and hard work helps him to garner new business through references. Ajay is well-known in Mohali and with onlineinvesting, his customer base is expanding to cities all over India. A man who keeps in tune with the market and truly cares for his clients, he hasslowly started Health and Life insurance advisor. And having seen a decade in this field, he recommends direct investment only for the trulyinformed and veteran investor.ARN - 31528Location - ChandigarhEmail id - ajeybakshi@yahoo.co.in

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors. Fund Review 7TARAKKI TIMES, OCT-NOV 2018 ICICI Prudential Midcap Fund Better downside protectionThe Economic Times | October 22, 2018ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio andperformance to help you make an informed investment decision.HOW HAS THE FUND PERFORMED? BASIC WHERE DOES THE FACTS FUND INVEST?With a 10-year return of 18.17%, the fund has underperformed boththe benchmark index (19.47%) and the category average (19.44%).Growth of `10,000 vis-a-vis INDEX DATE OF LAUNCH Portfolio asset Fund stylecategory and benchmark allocation box `59,239 28 OCT 2004 CATEGORY CATEGORY Equity 66.05% Growth Blend ValueSmall Medium Large `59,078 EQUITY Large-cap INVESTMENT STYLE CAPITALISATION`10,000 FUND TYPE 11.89% `53,101 MID CAP Mid-cap AVERAGE AUM 69.23% `1,451.70 CR Small-cap BENCHMARK 18.88% NIFTY MIDCAP 150 Debt & Cash TOTAL RETURN INDEX 7.90% WHAT IT COSTS The fund small-cap exposure NAVs* I GROWTH OPTION is higher relative to peers. `91OCT 2008 OCT 2011 OCT 2014 16 OCT 2018 DIVIDEND OPTlON The fund has underperformed its category Top 5 sectors in portfolio (%) `23I Chemicals 13.66 MINIMUM INVESTMENT average and benchmark over the past decade. `5,000 Engineering 12.29 MINIMUM SIP AMOUNTAnnualised performance (%) Services 12.13 `1,000FUND INDEX CATEGORY AVERAGE Financial 10.48 EXPENSE RATIO** (%) Healthcare 8.25 2.36 24.09 22.73 22.49 The fund has taken sharp underweight EXIT LOAD 8.61 12.04 8.12 1% for redemption I within 365 days position in financials relative to index.-11.74 -12.00 -12.29 -6.60 -6.04 -7.76 *AS ON 16 OCT, 2018 Top 5 stocks in portfolio (%) **AS ON 31 AUG, 20186 MONTHS 1 YEAR 3 YEARS 5 YEARS Indian Hotels 5.95 AS ON 16 OCT, 2018 Tata Chemicals 5.17 The fund has contained downside slightly Exide Industries 5.04I better during the recent fall in the market. L&T Infotech 4.94 PI Industries 3.44Yearly performance (%) The fund takes healthy active I positions in its top bets.FUND INDEX CATEGORY AVERAGE 55.73 How risky is it? 42.90 43.15 Fund Category Index 17.55 18.91 Standard Deviation 16.39 9.70 8.76 6.53 4.80 -14.96 -16.59 -15.79 Sharpe Ratio 0.24 0.21 0.445.09 4.83 Mean Return 10.37 10.10 14.63 20182015 2016 2017 FUND BASED ON 3-YEAR PERFORMANCE. AS ON 16 OCT, 2018 MANAGERS The fund’s risk-return profile is slightly MRINAL SINGH (PICTURED) MITTUL KALAWADIA I TENURE: 7 YEARS AND 4 MONTHS / better than the category average. 2 YEARS AND 5 MONTHS The fund has been an average WHEREVER NOT SPECIFIED, DATA AS ON 30 SEP 2018. Education: B.E., PGDM / MCOM, CA SOURCE: VALUE RESEARCH.I performer in recent years.SHOULD This fund has realigned its portfolio However, it still retains higher growth business that also have outside the index. While the fundYOU significantly to fit the revised exposure to small-caps relative to room for value to unfold. It has underperformed in recentBUY? criteria for mid-cap funds. It has cut peers. It has also adopted a emphasises on management years, it provided better downside its earlier sizeable presence in different benchmark index to integrity. The fund manager takes protection during the recent small-cap sharply, while mid-cap better reflect the target universe. healthy active positions in top bets market fall-this may prove critical exposure has been beefed up. The fund remains focused on and is comfortable placing bets over the next few years.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.8 TARAKKI TIMES, OCT-NOV 2018 Fund Review ICICI Prudential Short Term FundA stable short-term fund, with focus on liquidityDNA | October 29, 2018 between low to moderate duration and The moderate duration strategy provides focus on higher accrual income by protection from the volatility and alsoICICI Prudential Short Term Fund is maintaining a high credit profile of the benefits from the roll down perspective. managed by Manish Banthia. He took portfolio. He attempts to capture spreads over as the manager of this fund following between gilts and corporate bonds by The credit profile of the fund is skewed toin November 2009. Banthia joined the AMC studying historical spreads. superior credit quality fund. Banthia takes ain October 2005. Banthia has extensive tactical call through government securitiesunderstanding of the fixed income market The execution of this process has been good and State Development Loans (SDLs) mainlywith an overall experience of 13 years. with 60-65% that reflects his medium-term at the short end and invests in the most liquid view while the remaining 35-40% of the ones, thus aiming to keep liquidity risks low.Investment Strategy portfolio is managed tactically to take advantage of any short-term movement in While there is no restriction on maintaining aThe fund employs an investment process rates. Banthia manages the duration of the certain minimum allocation to G-Sec in thiswith a focus on safety, liquidity and returns. portfolio in the range of two to three years. strategy, the fund manager presently has aSpread analysis is integral to his investment preference for maintaining a higherapproach. Banthia runs the strategy allocation to G Secs, given his views on the interest rate cycle and credit off take cycle,ICICI Short Term Fund as well as to manage the liquidity of the portfolio.Morningstar Category India Fund Short DurationFund Size (INR bn) 75.8 The fund is an excellent option for investorsInception Date 10/25/2018 looking to invest into a stable and wellAnnual Report Net Expense Ratio 1.27 managed short-term fund.Morningstar Rating Overall ***** Portfolio composition Some of the companies the fund has invested in include Bharti Airtel, Tata Sons, Axis Bank, NABARD, Power Finance Corporation, SIDBI and ONGC Mangalore Petrochemicals.Manager Name Manish Banthia Minimum Investment 5000 There is no restriction Morningstar Analyst Rating Bronze on maintaining a certain minimumTrailing Returns allocation to G-Sec in this strategy, the ICICI Prudential Short Term Fund fund manager India Fund Short Duration presently has a3.39 preference for 2.66 maintaining a higher allocation to G Secs, 3.78 given his views on 3.18 the interest rate cycle and credit off take 7.19 cycle, as well as to 5.74 manage the liquidity of the portfolio. 8.50 6.86 8.59 6.90YTD 1-Year 3 Years 5 Years 10 Years

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 9TARAKKI TIMES, OCT-NOV 2018 ICICI Prudential Regular Savings Fund Conservative in risk, consistent in returnsBusiness Standard | November 18, 2018 September 2018 quarter. million) would have grown to `2.02 million, earning 10.09 per cent per annum as onThe fund was launched in March 2004 Good performance November 15, 2018. A similar investment in as ICICI Prudential MIP 25 Fund. the benchmark would have grown to around Subsequent to the re-categorisation of The fund has outperformed its benchmark `1.92 million at 9.12 per cent per annum.mutual funds by SEBI, it was renamed ICICI (CRISIL Hybrid 75+25 - Conservative Index)Prudential Regular Savings Fund. across the past 1, 2, 3, 5, 7 and 10 years Portfolio analysis trailing periods and peers (funds rankedThe fund has featured in the top 30 under the conservative hybrid category in During the past three years, the fund haspercentile in the con-servative hybrid funds CMFR - September 2018) across all trailing predominantly invested in debt and moneycategory of CRISIL Mutual Fund Rankings periods under analysis. market instruments (average 73.16 per cent(CMFR) for the two quarters ended of the portfolio); the remaining allocationSeptember 2018. A sum of `10,000 invested in the fund since was to equities and cash. The debt portfolio inception would have grown to `40,528 was largely composed of corporate bondsRajat Chandak and Manish Banthia have (10.03 per cent CAGR; compounded annual and government securities (G-secs) duringbeen managing the equity and debt growth rate) on November 15, 2018 this period. Corporate bonds had averagecomponents of the portfolio since February compared with `34,358 (8.80 per cent allocation of 40.97 per cent and G-secs 32.182015 and September 2013, respectively. The CAGR) for peers and `35,132 (8.96 per cent per cent during the period under analysis.fund's investment objective is to generate CAGR) for the benchmark.regular income through investments Exposure to the highest rated (AAA and A1+)predominantly in debt and money market A systematic investment plan (SIP) is a corporate bonds averaged 22.27 per centinstruments. The scheme also seeks to disciplined mode of investment offered by during the past three years. Exposure to AAgenerate long term capital appreciation from mutual funds to investors. A monthly SIP of category and A1 rated debt instrumentsthe portion of equity investments under the `10,000 over 10 years (an investment of `1.2 averaged 13.02 per cent, while exposure toscheme. It's quarterly average assets under A+/A2+ & below rated debt instrumentsmanagement was `16.32 billion in the averaged 5.68 per cent. The fund did not have exposure to the recently downgradedThe fund's investment objective is to debt instruments of IL&FS during the periodgenerate regular income through under analysis. With the rise in bond yieldsinvestments predominantly in debt and during the past one year, the fundmoney market instruments. The scheme substantially reduced its modified durationalso seeks to generate long term capital in order to reduce interest rate risk exposureappreciation from the portion of equity of the portfolio. The fund reduced itsinvestments under the scheme. modified duration from 5.66 years in October 2017 to 1.71 years in October 2018. Peers reduced their modified duration from 3.94 years to 1.87 years during the same period. CRISIL ResearchAHEAD IN MOST TIMEFRAMES Benchmark 12 10 ICICI Prudential Regular Savings Fund Category 8 6Returns (%) 41.4 2 0.2 0 2.4 4.0 0.7 3.2 8.1 4.9 7.1 8.9 6.8 8.6 11.4 9.5 10.6 10.7 9.2 9.8 11.6 9.7 10.36 Months 1 Year 2 Years 3 Years 5Years 7 Years 10 YearsReturns as on15 Nov 2018; Returns up to one year are absolute, rest annualised

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.10 TARAKKI TIMES, OCT-NOV 2018 Fund ReviewJust A Handful Of Fund Houses Show Consistent Top Quartile PerformanceBusiness World | November 16, 2018In overall equity AUMs, ICICI MF AMC tops the list owing to defensive investment bets that cushioned the downsideWhen it comes to overall equity and small-caps turning volatile since the The data analyses fund houses over a one performance of fund houses, less start of 2018. year period as on October 31, 2018. Value than half the fund houses showed Research looked at how the equity schemesa consistent top quartile ranking of their Says Pankaj Mathpal, CFP and managing of various fund houses were placed on aequity funds across their equity AUMs. In an director, Optima Money Managers: “Some quartile basis. For this analysis, all the equityaggregation of the past one-year AMCs are showing consistency in a schemes of a particular fund house wereperformance, fund houses that had a larger downturn. In any market, consistency is considered. Further, the percentage ofproportion of their equity AUMs in the top more important. Whenever there is a rally in equity assets in the top quartile for each fundquartile included ICICI Prudential MF, HDFC the market, many AMCs pick up stocks that houses has been assessed based on theMutual Fund and UTI Mutual Fund. help them make high returns only in a rally. percentage of funds in the top quartile. Not many fund houses position themselvesAmong the fund houses, ICICI Prudential for a downturn too.” The results show that few fund managersMutual Fund has 81.57 percent of its equity have successfully managed to navigateAUM featuring in the top quartile funds, A dip in the stock market that started with the volatile times in equity markets acrosswhile HDFC AMC has 56.78 per, and UTI MF mid- and small-caps correcting at the their equity funds.has about 52.23 percent of its equity funds beginning of the year snowballed into aamong the top funds, according to data major fall in the last few months. The Quartile performanceavailable from Value Research, an inde- analysis from Value Research shows thatpendent mutual fund research house. only about four fund houses have been able AMC Name AMC Name% of equity to show consistent performance across their assets in top quartileThe one-year performance measures as on schemes in a downturn, including RelianceOctober 31, 2018, look at the total equity MF, which has 47 percent of its total equity ICICI Prudential MF 81.57corpus of the fund house figuring in the top funds in top quartile funds.quartile funds. Mutual funds are categorised HDFC MF 56.78into four quartiles i.e. top quartile, upper- “As a fund manager, you should always takemiddle quartile, lower-middle quartile, and care that the downside is protected. Equity UTI 52.23bottom quartile. A quartile ranking indicates markets by nature is volatile. One should nothow well a fund has performed in its only position for a bull market but also see Reliance 47.24category. that people should not lose money in a bear market. ICICI MF has been consistent in the SBI MF 19.64At a time when the market has been volatile top quartile by a big margin, and they hadand investors are turning jittery about future taken a defensive position across their Franklin 16.09investments, it’s worth taking a look at how schemes, which has played out well,” saidthe Indian fund houses are placed in terms of Mathpal. Sundaram 8.60their investments. The last one year return of benchmark Motilal 7.83In the past one year, equity markets have indices has been listless with Nifty 50 atperformed marginally lower with the mid- 0.5% and S&P BSE Sensex at 3.7%. Tata MF 2.32 Kotak 1.71 DSP 0.66 Birla MF 0.09 IDFC 0 Source: Value Research, Data as on Oct 31, 2018 The Mutual Fund ShowThis Asset Manager Topped Crisil’s Ranking And How…Bloomberg | Quint | November 24, 2018 Fund ranked second. Here are the edited excerpts from the conversationIn a volatile year for equities, none of the This also comes in a year the market mutual fund schemes offered positive regulator decided to lower expenses paid by The ICICI Prudential Multicap Fund returns. While large cap funds dropped investors of equity mutual funds. It capped improved the ranking. What has worked inthe least, small caps performed better than the maximum total expense ratio for closed- this fund’s favor?their corresponding benchmarks. end equity schemes to 1.25 percent and other equity schemes to 1 percent. Vidyadharan: A combination of sectoral callsBased on their performance, Crisil ranked and stock selections. Some of the sectors462 funds as of September. Of this, 200 are The average assets under management rose which have worked for them are pharma, ITequity funds, 214 are debt and 48 are hybrid. to Rs 24.35 lakh crore in the September and FMCG. The companies which haveICICI Prudential Mutual Fund led the asset quarter. But a fall in debt-oriented funds AUM helped them in terms of performance ismanagers with its 11 schemes featuring in restricted a further rise in the period. exposure in Cipla, Alembic Pharma, Wiprothe top 30 percentile of the CRISIL Mutual and Infosys. These were overweight andFund Ranking. It was followed by Axis On BloombergQuint’s weekly series The helped them generate better performance inMutual Fund and L&T Mutual Fund. ICICI Mutual Fund Show, Jiju Vidyadharan, senior recent rankings.Prudential Mutual Fund topped the equity director of funds and fixed income at Crisilfunds as well with six schemes in the top 30 Research, speaks about how they arrived atpercentile, followed by Invesco Mutual the rankings.Fund. Among debt funds, the top slot wasoccupied by L&T Mutual Fund. Axis Mutual

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 11TARAKKI TIMES, OCT-NOV 2018mint List of ICICI Prudential Funds in Mint30BESTFUNDSMint | November 2018FUND CORE 3-year return (%) 5-year return (%) 10-year return (%) Fund size (Rs cr)EQUITY-LARGE CAPICICI Prudential Bluechip Fund 12.4 15.15 20.1 18,869.85ICICI Prudential Nifty Next 50 Index Fund 12.9 17.5 NA 300.68ELSSICICI Prudential Long Term Equity Fund 9.78 16.55 21.29 5,307.97(Tax Saving)AGGRESSIVE HYBRID 12.01 16.6 18.22 26,729.35 3-mth return (%) 6-mth return (%) 1-year return (%) Fund size (Rs cr)ICICI Prudential Equity & Debt Fund 1.45 3.29 4.54 7,036.85FUND COREDEBT-ORIENTEDSHORT DURATIONICICI Prudential Short Term FundSIP Top UpA monthly Systematic Investment Plan (SIP) of Rs.10,000 with an annual Top Up of 10% in these schemes has generated returns as stated below. Scheme Name Return (%) 5 Years 10 Years Return (%) 9,41,590 39,61,068 ICICI Prudential Return (%) Midcap Fund Return (%) 11.48 16.51 Return (%) 9,37,047 35,42,484 ICICI Prudential Return (%) Bluechip Fund Return (%) 10.83 14.12 Return (%) 9,46,395 36,61,385 ICICI Prudential Equity Return (%) & Debt Fund Return (%) 11.33 14.76 8,94,913 32,85,632 ICICI Prudential Large & Mid Cap Fund 8.91 12.5 9,38,061 35,29,118 ICICI Prudential Multi-Asset Fund 10.83 13.98 9,58,063 36,16,983 ICICI Prudential Multicap Fund 11.87 14.41 8,95,993 32,77,313ICICI Prudential Balanced Advantage Fund 8.88 12.44 9,11,397 -- ICICI Prudential -- Focused Equity Fund 9.53 9,31,152 41,41,274 ICICI Prudential 17.72 Value Discovery Fund 10.77 9,16,914 36,46,724ICICI Prudential Long Term 14.86 Equity Fund (Tax Saving) 9.98Data in XIRR (%) terms and as of October 31, 2018Past performance may or may not sustain in the future.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.12 TARAKKI TIMES, OCT-NOV 2018 Fund ReviewETW Funds 100List of ICICI Prudential Funds in the Economic Times WealthET Wealth | November 2018FUND Value Research Returns (%) Fund RatingEQUITY: LARGE CAPICICI Prudential Nifty Next 50 Index Fund 3-month 6-month 1-year 3-year 5-yearICICI Prudential Bluechip Fund 16.85HYBRID: AGGRESIVE -10.35 -13.19 -10.15 10.99 14.33ICICI Prudential Equity & Debt Fund -5.78 -3.16 -1.06 10.94 16.22HYBRID: CONSERVATIVE 11.15ICICI Prudential Regular Savings Fund -1.8 -1.84 -1.5 10.94 8.42DEBT: MEDIUM- TO LONG-TERMICICI Prudential Bond Fund -0.69 0.95 2.57 8.44 10.38DEBT: DYNAMIC BOND 0.85 2.06 1.85 6.27 8.05ICICI Prudential All Seasons Bond FundDEBT: CORPORATE BOND 0.98 2.42 3.42 8.17ICICI Prudential Corporate Bond Fund 1.27 2.95 4.85 7.24Systematic Investment PlansA monthly Systematic Investment Plan (SIP) of Rs. 10,000 in these schemes has generated returns as stated belowScheme Name 3 Years 5 Years 7 Years 10 Years 391,919 800,643 1,527,827 2,852,311ICICI Prudential Midcap Fund Return (%) 11.48 5.60 787,640 16.79 16.51 (An open ended equity scheme predominantly 415,540 10.83 1,342,590 2,508,964 investing in midcap stocks) 797,263 9.54 11.33 13.16 14.12ICICI Prudential Bluechip Fund Return (%) 411,140 751,025 1,388,789 2,597,570 (An open ended equity scheme predominantly 8.82 8.91 14.11 14.76 investing in large cap stocks) 398,819 787,712 1,276,559 2,300,644 10.83ICICI Prudential Equity & Debt Fund Return (%) 6.77 808,382 11.75 12.5 Return (%) 417,710 11.87 1,353,680 2,490,406 (An open ended hybrid scheme investing predominantly Return (%) 750,432 in equity and equity related instruments) Return (%) 9.90 13.39 13.98 413,161 8.88 1,415,494 2,549,163 ICICI Prudential Large & 762,650 Mid Cap Fund 9.15 14.64 14.41 399,092 9.53 1,260,185 2,293,210 (An open ended equity scheme investing in both 786,513 large cap and mid cap stocks) 6.81 10.77 11.39 12.44 413,037 771,155 1,275,412 --ICICI Prudential Multi-Asset Fund -- (An open ended scheme investing in Equity, Debt, 9.13 9.98 11.73 Gold/Gold ETF/units of REITs & InvITs and such other 398,437 1,468,707 3,045,547 asset classes as may be permitted from time to time) 17.72 6.70 15.68 ICICI Prudential Multicap Fund 402,247 1,365,402 2,611,504 14.86 (An open ended equity scheme investing across 7.34 13.64 large cap, mid cap and small cap stocks) ICICI Prudential Balanced Return (%) Advantage Fund Return (%) Return (%) (An open ended dynamic asset allocation fund) Return (%) ICICI Prudential Focused Equity Fund(An open ended equity scheme investing in maximum 30stocks across market-capitalisation i.e. focus on multicap) ICICI Prudential Value Discovery Fund (An open ended equity scheme following a value investment strategy) ICICI Prudential Long Term Equity Fund (Tax Saving) (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit)Data in XIRR (%) terms and as of October 31, 2018Past performance may or may not sustain in the future.

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.Fund Review 13TARAKKI TIMES, OCT-NOV 2018 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | November 2018Scheme Name BL Rating Trailling Returns (%) YTD Absolute 1 Year CAGR 3 Year CAGR 5 Year CAGR -4.7 14.9ICICI Prudential Bluechip Fund -9.6 1.1 10.6 13.6ICICI Prudential Large & Mid Cap Fund -3.4 17.7ICICI Prudential Multicap Fund -16.6 -3.2 9.8 23.6ICICI Prudential Midcap Fund -26.2 12.0ICICI Prudential Smallcap Fund -2.1 3.8 9.8 13.5ICICI Prudential Focused Equity Fund -4.1 20.7ICICI Prudential Value Discovery Fund -3.5 -8.4 7.8 17.2ICICI Prudential Long Term Equity Fund(Tax Saving) -14.0 -15.6 3.3 -ICICI Prudential Dividend Yield Equity Fund 0.6 13.6ICICI Prudential FMCG Fund -19.3 4.7 9.4 14.0ICICI Prudential Infrastructure Fund -10.9 22.2ICICI Prudential Banking & Financial Services 21.7 2.2 7.4 16.5ICICI Prudential Technology Fund -ICICI Prudential P.H.D Fund -5.0 5.0 8.7 -ICICI Prudential Equity & Debt Fund 1.2 16.4ICICI Prudential Equity Savings Fund 5.5 -8.0 9.4ICICI Prudential Ultra Short Term 5.3 6.2 11.3 -ICICI Prudential Savings Fund 5.8 -8.8 4.2 9.3ICICI Prudential Money Market Fund 3.7 -8.6 13.9 8.4ICICI Prudential Short Term Fund 3.3 38.8 11.0 7.9ICICI Prudential Medium Term Bond Fund 1.8 -- 8.3ICICI Prudential Bond Fund 1.3 0.9 10.4 8.4ICICI Prudential Long Term Bond Fund 3.5 3.7 7.7 8.4ICICI Prudential All Seasons Bond Fund 4.3 6.4 7.9 8.4ICICI Prudential Corporate Bond Fund 4.5 6.4 7.7 10.4ICICI Prudential Credit Risk Fund 3.7 7.2 7.3 8.1ICICI Prudential Banking & PSU Debt Fund 4.1 4.0 7.2 8.5ICICI Prudential Gilt Fund 1.8 3.5 7.0 8.6ICICI Prudential Regular Savings Fund -1.8 1.6 6.3 9.2ICICI Prudential Balanced Advantage Fund -5.4 0.5 6.5 11.3ICICI Prudential Child Care Fund (Gift Plan) 3.2 8.1 12.8 4.8 7.3 16.9 5.1 7.4 3.8 7.6 2.6 7.5 3.4 8.4 2.0 7.9 2.7 8.6Source : NAV India; NAV for the growth option as on 12-10-2018. 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, certainSchemes 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 tonotices 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 riskfactors. 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 ofpublication 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 infuture 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 anyof 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 lossof 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 MutualFund 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.