\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" A COMPILATION OF ICICI PRUDENTIAL AMC MEDIA VIEWS MUMBAI | OCTOBER 2022 | PAGES 19 Professional Views 3 things to light up your investments Pg. 2 We will have product offerings across the board Mutual Fund Insight | November 01, 2022 Nimesh Shah MD & CEO Pg. 3 High yields make debt alluring ET Wealth | October 31, 2022 Pg. 4 S Naren shares insights on the current market structure The Economic Times | October 07, 2022 Sankaran Naren The Times of India | October 21, 2022 ED & CIO Pg. 6 ICICI Prudential Multi Asset Fund Nimesh Shah the developed world goes in a portfolio and should not be completes 20 years MD & CEO through a recession. In fact, a ignored. ICICI Prudential Mutual Fund developed world recession The Economic Times | November 04, 2022 could significantly reduce some 2. Benefit from Solution oriented of India’s challenges, including offerings that mutual funds offer Pg. 7 high oil prices, concerns over current account deficit, and We anticipate market volatility to Transportation & Logistics theme Over the past year, equity inflation. While equity markets persist till the time the US Fed appears ripe for outperformance markets have remained volatile may correct, we should not be remains committed to using all both in India and globally. Due to overly worried because India available tools to combat infla- The Times of India | October 14, 2022 quantitative tightening and rate remains one of the most struc- tion. Hence, investors should increases to combat persistent tural markets in the world. exercise caution, especially in Pg. 8 inflation, global central banks Additionally, there is a potential India. Over the coming year, ICICI Prudential Value Discovery element of geopolitical uncer- investors should ideally invest tainty. Since the Russia-Ukraine through SIPs with a time horizon Fund appear to be controlling the conflict, Europe and Asia too has of three to five years. witnessed geopolitical challen- Outlook Money | November 2022 market once more. Despite ges. The market thus far has not From an equity investment pers- factored in any such develop- pective, for lump sum invest- Pg. 9 these challenges and a volatile ment. Therefore, we have to be ment, investors can consider watchful of how geopolitical asset allocation strategies such Equity SIPs 'Timing' entry via external environment, there is a developments unfold. as the balanced advantage or the multi-asset category. One can valuations may be a better bet positive: India is enjoying a As an individual investor, it is also consider features such as important to pay attention to the B o o s t e r S I P, B o o s t e r S T P, The Economic Times | October 24, 2022 stable economy. India has been a three factors listed below: Freedom SIP or Freedom SWP to standout among major markets, achieve various financial goals in Pg.10 outperforming almost all emerg- 1. Invest in Debt Mutual Funds; a planned, disciplined and has become very attractive systematic manner. Optimising Systematic Transfer Plan ing markets on a one-year or Given the higher yields across 3. Invest in Gold & Silver ETFs / Outlook Money | October 2022 five-year basis by a significant duration, one asset class-debt- FoFs that hitherto has been unpopular Pg.11 margin. As a result, the correc- (for the last 18-20 months) is A diversified portfolio across 4 fund aces up your sleeve tion in Indian markets has been looking attractive again. We asset classes will ensure any Hindu BusinessLine | October 30, 2022 relatively well-contained, owing expect repo rate hikes in the concentration risk stands miti- to which Indian equity valuations upcoming meetings, due to high gated. Given the uncertainty, Distributor Insights are still elevated when compared consumer prices, a challenging commodities such as gold and global economy and inflation silver present an interesting Pg.13 Equity Market Outlook to their long-term average and that is persisting above the RBI’s investment case. They serve as a global peers. The Indian Central comfort level. Therefore, going hedge not only against inflation, Business World | November 05, 2022 forward, higher accrual schemes but also against currency depre- and dynamic duration schemes ciation. Investors can consider Pg.14 Two lenses to look at the Bank, Indian Government and are recommended. We believe investing via ETFs in this space. stock market Corporates, all have handled the one type of debt that is likely to For those without a demat situation very well so far. Despite outperform is floating-rate bonds account, a gold or silver fund of Outlook Money | October 2022 that it is prudent, to be conscious (FRBs). Investors should be funds is an investment option. of the risks since market valua- mindful that debt mutual funds Tarakki Corner tions are not cheap. have a very important role to play Pg.15 Rajan Nagpal Panipat, Mutual Fund Distributor Pg.16 Deepak Goyal Today the world is much more interconnected than before and Rajpura, Mutual Fund Distributor if there are problems that Fund Review Pg.17 emerge in the world, the ride for List of ICICI Prudential Funds equity investors in India cannot in Star Track Mutual Fund be that smooth either. It is our belief when US Fed declares that Pg.18 they are done with tightening, it List of ICICI Prudential Funds would be a turning point for in Mint equities to emerge as a great asset class. We don’t know when ETW Funds 100 that happens and until then we Pg.19 expect markets to remain ICICI Prudential Freedom SIP volatile. We think that India won’t be significantly affected even if
\"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, OCTOBER 2022 Interview We will have product offerings across the board Mutual Fund Insight | November 01, 2022 decade. Hence. by 2032 mutual should be able to meet their funds industry assets can be investment requirements expected to be at least one third through our product offerings. of total bank deposits. This business is all about Evolution of investors' views investor interest and trust. Any about mutual funds manufacturer who keeps investor interest as part of its Largely, our investors are happy core philosophy will grow and about the various solution- anybody doing otherwise will not oriented offerings, including succeed. asset-allocation strategies, fund of funds and innovative product Rapid-fire questions features, such as Booster SIP, Booster STP, Freedom SIP and • One AMC (other than your Freedom SWP. own) that you admire the most: What investors are unhappy 100 per cent of my mutual fund about is their inability to deploy investments are with ICICI more when the markets correct Prudential Mutual Fund and I or during times of panic. For have never felt the need to example, when value as a explore other fund-house strategy underperformed, inves- offerings. tors were reluctant towards making an allocation to a value • Key advice to your younger fund. self: Nimesh Shah As of August 2022. the mutual To help investors counter this Start investing early and allow MD & CEO fund assets grew to `39.53 lakh b e h a v i o u r, w e l a u n c h e d a the power of compounding to ICICI Prudential Mutual Fund crore, at a CAGR of 18 per cent dynamically managed asset- play out. and making them 23 per cent of allocation fund or a balanced- Indian mutual fund industry in the total bank deposits (about advantage category fund which • One investing mantra that 2042 `170 lakh crore). is countercyclical in nature. We you never ditch: are happy through such a During the past few years, the We can conservatively assume strategy we could help investors Asset allocation, buy low, sell mutual fund industry has that the mutual fund industry overcome this challenge. high and staying invested with a emerged as one of the fastest- assets over the next decade will long-term view growing segments in the grow in line with bank deposits AMCs' strategy towards financial system. A decade back, growth, as witnessed in past passives • Your personal asset allocation: the mutual fund industry assets (about `7.5 lakh crore) were 11 As a leading manufacturer, we When markets are expensive, my per cent of the overall bank will have product offerings allocations favour conservative deposits (about `70 lakh crore). across the board. There were multi-asset fund and debt funds: some gaps on the passive side and when markets turn cheap, and we are working towards the larger allocation is towards launching a suite of passive aggressive thematic advantage offerings. The aim is that every fund. category of investor profile This business is all about investor interest and trust. Any manufacturer who keeps investor interest as part of its core philosophy will grow and anybody doing otherwise will not succeed.
\"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, OCTOBER 2022 High yields make debt alluring ET Wealth | October 31, 2022 Amidst high inflation and rising corporates have all handled deficits are likely to remain Sankaran Naren interest rates, add debt funds to the situation very well so far. elevated. ED & CIO your portfolio, says Sankaran Although equity markets con- Naren tinue to be volatile, India is still Credit growth more than ICICI Prudential Mutual Fund one of the most structural mar- deposit growth: After many After allowing nearly zero kets in the world, so we need not years, there is a scenario where interest rates, as coupons are interest rates and easy liquidity be overly concerned. credit growth in the financial reset periodically. This would for an extended period of time system (greater than 15%) is translate into higher pay-outs for since 2008, central banks in the Debt funds look appealing right higher than deposit growth, investors. majority of developed countries now because of their higher which indicates the possibility began to tighten their belts as yields provided by the environ- that higher rates would persist. Focus on low duration funds inflation began to hurt starting ment's high inflation and rising In general, low duration funds November 2021. Previously, the interest rates. Now might be a Yield curve position lacklustre: are better positioned when easy access to capital meant that good time to think about inves- The yield on the 10-year g-sec interest rates are rising and may, equity inflows continued unaba- ting in debt funds because has increased only 57 basis therefore, potentially perform tedly, resulting in a significant their prospects seem promising. points from March to September better for investors. market rally over the previous Against this reality, this article of this year, whereas the yield on decade or so. The Russia- sheds light on how you can make the 1-year g-sec increased by Emphasize on accrual strategy Ukraine conflict has also wor- the most of your debt funds. 242 basis points. However, this and spread assets sened the situation and caused situation may change in the Spread assets or bonds with an energy crisis, apart from High interest rates to stay future. ratings of AA, AA- or lower will adding to global inflation. have higher spreads or interest Before reflecting on how debt Strategies to follow now rates than AAA securities. As a result, the US Federal funds can be used at this time, Investor returns are likely to Reserve and many of the let's note some factors that The RBI will perhaps increase increase as a result of this. developed market central banks suggest that elevated inflation rates, given the persistent began raising rates, and and interest rates may persist at inflation and challenging global The author is Executive Director concurrently, the Reserve Bank least for the next few years. economic environment. In this and CIO, ICICI Prudential Mutual of India (RBI) raised its repo rate scenario of rising rates, you can Fund. by 190 basis points from May of Inflation uncomfortable: The use a few strategies mentioned this year to 5.9% at the present RBI's tolerance band of 2-6% below to make the most out of time as a result of a sharp inflation rate has been exceeded your debt funds. A combination increase in inflation in India. due to the CPI being over 7% and of these steps and a focus on Despite a year of flat returns, the the WPI consistently reporting active duration management Indian equity markets have been double-digit inflation rates. may lead to better payoffs yet for among the most expensively investors: valued markets in the world. Twin deficits remain high: India's Since market valuations are not fiscal and current account de- Invest in funds holding floating low, it is prudent to be aware of ficits are both still substantial. -rate instruments the risks even though the RBI, Given that India imports the Floating rate bonds would the Indian government, and majority of its oil needs, these benefit from any increase in
\"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, OCTOBER 2022 Interview S Naren shares insights on the current market structure The Economic Times | October 07, 2022 Sankaran Naren manager, the Fed, is stressing ended this category to everyone that categories like balanced ED & CIO that it wants to crush inflation so we could think about, because it advantage should be consi- ICICI Prudential Mutual Fund the markets keep coming down. is the only category in debt dered. Now, we tell people not to where increasing interest rates is only consider categories like \"The real problem that India has India has displayed much lower a big benefit. We continue to balanced advantage or asset faced is arising out of higher volatility because neither India’s think that within asset allocation allocation, they should also crude prices because of this central bank nor the Government and within that in debt floating, consider debt because it is very entire Ukraine issue. We are of India indulged in so much interest becomes one of the important that investors carry a connected-capital markets, so till excesses. So, we are definitely biggest categories to benefit. good experience about the the time the Fed changes its much lower beta than the global There is no sign at this point in mutual fund industry. For that stance to ‘do not want to crush markets. Having said that, I think time that interest rates would not you need to invest in debt mutual inflation’, we are going to have the real problem that our country keep going up. Cash of course is funds and in asset allocation volatile markets. Because India has faced is arising out of higher attractive, but you will benefit categories to have a good has handled that macro better, crude prices out of this entire from increasing interest rates experience of the mutual fund we have a situation where Indian Ukraine issue. everywhere in the world. So you industry. valuations are one of the highest choose that category and that is in the world and that represents a Otherwise, India did not indulge what we have made, we have That is a very relevant point but risk for people who are oriented in those excesses, so it has been been trying to tell investors to I do not blame investors also towards valuations,\" says S a lower beta market. Still, we are look at that category. because from the start of the Naren, CIO, ICICI Prudential connected-capital markets, so till pandemic till now things have Mutual Fund. Edited excerpts. the time the Fed changes its Surprisingly, in the first three just so reversed in terms of stance to ‘do not want to crush months of recommending the what the futures for debt and While it is a welcome change, inflation’, we are going to have category, it did not do well. equities are looking like. So sometimes you want these flat volatile markets. Today, because But that has changed. ICICI sometimes I guess everyone is no-go kind of trading sessions. India has handled that macro prudential is one of the most puzzled out there but I want to But, I wanted to understand better, we have a situation where interesting categories as long as talk about your new NFO as what are you making of the Indian valuations are one of the interest rates are headed well. Tell us a little bit more market structure right now highest in the world and that upward, which seems to be the about it? because there are just so many represents a risk for people who case at this point in time. moving parts which continue are oriented towards valuations. Broadly, debt, particularly on the As a framework, we look at to impact us – inflation, dollar shorter duration side, is another themes that have under- index. Which way are the global Very interesting that you are category within asset allocation performed and, in 2018-2019, it markets going to move – will it recommending a safe strategy which people have not looked used to be commodities and be a hard or a soft landing? Is for your clients which includes at for a long period because pharma. In recent times, we the US going into a recession? SIP, asset allocation, fixed interest rates had come too low found that housing, PSUs, and Having said that we have done income portfolio. But after Covid-19. auto had underperformed. So we a lot better than many of our specifically with respect to said there is a good scope for western or Asian counterparts asset allocation, how has that I think it becomes something transportation and logistics and but are we still fragile? changed for you? Because we which people have to look at for these are all base needs, housing are hearing from global experts investing globally. It is cash, but is a base need. PSUs had See, post 2020, we have realised now that cash is no longer in India even short-duration leads underperformed for a decade that the biggest fund managers trash, that is a word coming in to interest rates whether ultra- despite profits being high. are the Fed, they have $8 trillion, from Ray Dalio. Jefferies has short, dynamic bonds like all what they do, besides what increased its cash allocation by seasons or short-term. Any of How long can the two-wheeler happens to the markets. So, 3%. How has your ideal asset these kinds of categories also industry give growth? And the when the economy was in very allocation changed? lead to a very interesting invest- car industry has hardly grown for bad shape in 2020, we saw the ing experience because India is almost a decade. We felt that markets going up because of Fed Three to six months ago, we did a not a zero-interest country and logistics as a sector has to keep actions at that point in time. lot of brainstorming within a has never been so. growing in a country like India Jerome Powell kept saying they company and realised that the because we cannot afford to want to create inflation, and that only product geared up for So these kinds of areas of be very small in exports and resulted in a very bullish market. increasing interest rates was the turnout are very interesting for imports. Now the Fed and their governors floating interest category. investors. India has become an are saying they want to crush Actually, we made a lot of effort equity country where people So, we always look for themes inflation. So we are in a global in that area to recommend inves- think that only equity leads to which have not done well over a market where the biggest fund tors to invest in the category returns. Thanks to the Fed, we long period of time and we because it is the only category have never had setbacks in approached the regulator to give which gains out of increasing equities. So we have a situation us permission to launch thematic interest rates. where people not only think funds like the transportation equities are the only asset class, and logistics fund. There we It was very clear that we are but they do deliver negative observed an opportunity for a going to have increasing interest returns. long-term investment. After all, rates not just in the world but India should have many more also in India on a persistent We had spent quite some time two-wheelers, cars and comm- basis. So we actually recomm- 10 years ago trying to tell people ercial vehicles on the road. It has
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Interview 5TARAKKI TIMES, OCTOBER 2022 a beautiful manufacturing base have earnings as well coming No. At the defensive sectors of holdings. It is a sector with huge for auto ancillary. Again, the up? What exactly is it that you the economy, one of the themes long-term potential and also logistics must keep improving are working with? that we have at this point in time benefits out of a depreciating because over a period of time, is recession-free exporters. rupee. India and every other country is Credit growth was good 10 years There is a possibility of recession talking about China plus one and ago, but at that point in time you in the western world and you But, in the near term, it is hurt by now Europe plus one. Both China had a huge non-performing loan know what the rupee is today the global outlook for growth. plus one and Europe plus one issue. Today, you have high credit and how the rupee is moving. So, But the long-term outlook looks mean that logistics have to grow growth and no non-performing we said we have to bet on very good. It is a sector we over the next decade or the next loan issue. You have a very recession-free exporters and should be betting in, rather than few decades. pristine balance sheet for most that is the reason why we have cutting our holdings at this point top banks in the country and been positive on pharma as a in time. I don’t think it is a sector So we were looking for such a virtually very low NPLs. Margins sector. It is a recession-free in which we could cut our theme and we approached the will expand because the credit to sector. People will consume holdings if it suddenly does well regulator to give us permission deposit ratio is zooming. medicines and that will be the due to the rupee movement. But, to launch such a scheme. We last thing they can economise as such, we would be looking to feel that there is an interesting If you look at the data, which on. invest in the sector. theme to invest in and in the came out yesterday, the incre- near- term, we are in a phase of mental credit to deposit ratio is That is the reason why we are Where do you stand when it market volatility. zooming at this point in time, positive on pharma. If you look at comes to the entire consumer which will help the banks. So we the power sector, our weight- discretionary space in the light So, we have the combination of are in a very interesting period for ages have been much higher of what we are seeing? What is being able to invest into that banks. I must say that borrowers than the benchmark, almost all your outlook on the inflationary market volatility and a long-term are not going to be in the best of the funds in ICICI Prudential. We concerns? theme, which looks interesting. shape because interest rates will would still be one of the largest That is why we have laun- continue to go up, which is the investors in the power sector and You have seen some of the ched the ICICI Prudential reason floating rate products are some amount of profit-booking quarterly updates which have Transportation and Logistics. It is good for investment. is always necessary for us as come, with the value head that I coming at a time when the investors. We are of the opinion have in my team, I find it more market volatility is not going to Today, most bank loans are that periodically we have to book difficult to buy because many of be low and that is something floating rates. So, banks are profits in stocks we invested in. the valuations are not cheap at investors have to think about. going to benefit at the expense That is one of the principles of all. Some quarterly updates have That is good because if you are of borrowers over the next two- investing that we have learned clearly shown that this is one of doing it when the market is non- to-three years, which is why we over a period of time because the sectors which is doing volatile, it is better to invest in an think that within the financial markets are always volatile and extremely well. existing scheme because the services space banking is in a sometimes it becomes a existing scheme gets invested very good position, particularly, problem if you don’t book any So, I believe it is tough for a on Day Zero. Whereas now is banks with a very good CASA profit. value-oriented fund manager in time to build the portfolio and franchise. our team. The theme is doing invest. In some sectors where we have extremely well and currently the That has been our framework for large positions, we always tend consumer discretionary space is So, we think, this is coming at a over the last two years. And that to book small amounts of profit one of the few pockets which is time when market volatility will is one of the reasons why we because it helps us actually doing extremely well, especially be pretty high over the next three have a rea-sonable weightage in reduce the average cost of our in the festive season. But, it is months due to what the Fed, the the sector at this point in time. holdings in some stocks as well. meant for growth -oriented ECB, and the BoJ are doing. investors. Value-oriented inves- As a value investor, you were Are you also tempted to reduce tors will consider valuations, that Let us also talk about the quite positive about the likes of exposure to IT? is a given at this point in time. largest allocation in ICICI power stocks earlier. But I see Growth-oriented investors in the Prudential Life AMC, financials one of the recent sales includes IT is a sector where at some point team really like the sector at this of course makes that list. Walk names like NTPC. What has in time we have to look at point in time. us through the outlook that you changed and the addition increasing our holdings in some see in terms of overall credit seems to be on the side of Sun funds where we are under- What about the consumption growth picking up. How are Pharma, Alkem Labs, are you weight. As the US recession space? There is a dichotomy you looking at it, particularly in now seeing value in the pharma develops, I believe that we will there. The discretionary part of the light of the fact that we sector? have to look at increasing our it, in terms of the malls and the We have the combination of being able to invest into that market volatility and a long-term theme, which looks interesting. That is why we have launched the ICICI Prudential Transportation and Logistics. Contd. on page 6
\"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, OCTOBER 2022 Interview ICICI Prudential Multi Asset Fund completes 20 years The Economic Times | November 04, 2022 ICICI Prudential Multi Asset Fund Prudential Multi-Asset Fund is a comes to investing, no one can ting in equity, debt and Exchange has completed 20 years. The testament to the thesis that predict which asset class will Traded Commodity Derivatives/ scheme manages an AUM of Rs prudent allocation across asset outperform at any point in time. units of Gold ETFs/units of REITs 14,227.24 crore, which accounts classes works well over time. We As can be seen from the (Real Estate Investment Trusts) & for nearly 68% of the total AUM are happy that customers who performance of various asset InvITs (Infrastructure Investment in the multi asset category, said a came on board at varying points classes over the past decade and Trusts)/Preference shares. press release. in this wealth creation journey more, every other year, the could experience the positive winning asset class keeps on The scheme invests across A lump sum investment of Rs 10 investment experience.” “At ICICI changing. The only way to make market capitalizations and vari- lakh at the time of inception Prudential Mutual Fund, there is the most in such a situation is ous asset classes with aim to (October 31, 2002), would have a specialist team which decides by spreading one’s allocation generate absolute returns over been worth around Rs 4.6 crore on the asset allocation to be across asset classes, such that longer time frames. It invests a (a CAGR of 21.2%) as of October carried out. The team consists of on an aggregate basis the port- minimum of 10 percent of its 31, 2022. A similar investment in fund managers from equity, debt folio can tap into the potential assets in three or more asset Nifty 50 would have yielded a and commodities space who benefits and gains that each classes. The net equity (net CAGR of 17.4% or Rs 2.5 crore. jointly decide on the allocation to asset class renders. Across equity exposure is calculated net be made. As a result, the scheme market cycles, such an approach of stocks futures and options) In terms of SIP performance, a benefits from the expertise of has aided in delivering a better can range between 10-80 per- monthly investment of Rs 10,000 the fund managers across asset risk adjusted investment experi- cent. The scheme follows a via SIP since the inception, which classes.” ence. Furthermore, multi-asset counter cyclical approach in would amount to a total invest- investing can aid in curbing port- investing and may take sector ment of Rs 24.1 lakh, would have Speaking about the fund stra- folio volatility and over longer deviations against the bench- grown to Rs 1.8 crore as of tegy, S Naren, ED & CIO, ICICI time horizons the importance of mark. The scheme may take October 31, 2022 i.e. a CAGR of Prudential AMC, said, “The de-risking the portfolio cannot be exposure to REITs, InvITs and 17.4%. advantage of multi-asset inves- overstated.” Covered call options with an aim ting is that equity, debt, gold, to enhance portfolio yield. Nimesh Shah, MD & CEO of ICICI may peak and bottom-out at ICICI Prudential Multi Asset Fund Prudential AMC, said, “ICICI different points of time. When it is an open ended scheme inves- A lump sum investment of Rs 10 lakh at the time of inception (October 31, 2002), would have been worth around Rs 4.6 crore (a CAGR of 21.2%) as of October 31, 2022. A similar investment in Nifty 50 would have yielded a CAGR of 17.4% or Rs 2.5 crore. S Naren shares insights on the current market structure Contd. from page 5 sales you are seeing from the seeing. Maybe, we will get the which never de-rates. So we quality banks which got de-rated. likes of Trent, Shoppers Stop, opportunity over the course of keep on looking for opportunities In different years, you will get etc, are quite solid. On the six or nine months, but the moats to de-rate but it never happens different opportunities and that other hand, there is Dabur of many of these companies are and that is where the challenge is the interesting aspect of active talking about margin pressure, pretty strong. So, I believe that lies for investors like us. management which we can use GCPL did not report a great set the opportunity may come in the this year. Who would have of numbers. How should we near-term. But, clearly at this In the case of other sectors, for expected in the last one year that really look at this entire space? point in time the discretionary example the two-wheeler US stocks will underperform? space is doing extremely well, industry has done pretty badly Global markets will continue to The valuations of the staple but the staple space is perfor- but it is a sector which has de- be volatile till the entire global names have never been cheap ming badly on a relative basis. rated significantly in the last five inflation comes under control over the last five years. years. and the Fed says everything Hopefully, we will get an entry If we take the next five-year is normal. point with the kind of lower outlook, I think the staple space So you get opportunities. This growth numbers that we are has good scope but it is a sector year there have been some
\"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, OCTOBER 2022 Transportation & Logistics theme appears ripe for outperformance The Times of India | October 14, 2022 India is the world’s fastest peripheral sectors. The up- ding necessary ecosystems will Harish Bihani growing economy and is likely to coming unfolding story is likely contribute in making India an Senior Fund Manager be the third largest one by 2030. to make the theme of trans- auto hub for manufacturing – a ICICI Prudential Mutual Fund portation and logistics a great boost for the allied sectors. Rising per capita income and an investment opportunity. $1540 and US’ $4860. Moreover, expected steep rise in wages The Logistics Space the average warehouse size is a over the next few years would Transportation and Logistics can fourth of China and a tenth of the push the households’ disposable broadly be classified into three With rising demand for goods US. income higher – giving a boost to key sectors - Auto Sector Original and buyers' preference to consumption. Amid this, the Equipment Manufacturers or get anything, anytime and If one looks at the average truck government’s continuous focus OEMs, Auto Ancillaries and anywhere; logistics come to play size for logistics, India is at 24-32 on improving infrastructure for Logistics. With luxuries fast quite a supporting role. Ordering feet while US and China stand at faster and efficient connectivity becoming necessities, more and your products online using your over 45 feet while average daily across the length and breadth of more people would be buying mobile phone does look easy commute distance of trucks is the country via roads, highways, vehicles - motorcycles and cars. and convenient, but the supply 325 km compared with more railways and flights will further Currently, there are only 24 chain mechanism which works than 500 km in the US. All these stoke the economic growth. cars per 1000 persons in India. behind the scene to make your factors clearly point out that the When compared to countries like purchasing experience happy growth potential of India’s A country’s economy can’t be Indonesia (40), China (110), clearly depends on the logistics logistics sector is yet to unfold sustainably strong if trans- Korea (330), USA (340) and other facilities right from procurement and upcoming years look portation and logistics - the western countries, India still has in bulk through shipping, road promising. economic growth engine - do a long way to go in terms of auto and rail route to sorting and not support it. Mobility is an penetration. Thus auto manu- processing in smaller packages In a nutshell, if you are an important contributing factor in facturers are likely to emerge as before being delivered to your investor ready to stay invested economic growth. With the rapid a beneficiary. Moreover, every doorstep. This whole supply with a three to five-year horizon, changes in India’s economic vehicle has a wide range of chain process will be a driving transportation and logistics status, automobiles, branded ancillaries embedded in it. In force for the growth of the theme, which is currently in an and exclusive products be it fact, auto is incomplete without logistics industry. evolving stage, may make for a mobile phones, electronic ancillaries. This paves the way good investment proposition. gadgets, clothes, household for wide scope growth for the Logistics in India is a long items, which were once con- ancillaries’ industry. structural growth story with e- sidered luxuries, are becoming a Commerce as the key driver. day-to-day requirement. With the latest technology like Currently, India’s logistics market Electric Vehicle (EV) being is estimated at $216 billion which Further, internet penetration has adopted by the manufacturers is dominated by unorganised led to a tremendous surge in e- and customers’ rising interest in players. Organised players commerce businesses which EVs, the auto sector is likely to contribute only 3.5%. But the has increased the importance see a new trend with preference expected disruptions will shift and relevance of transportation for premium technologies. This the market share in the favour of and logistics. However, this is augurs well for the auto sector as organised players. Compared just the beginning; immense a whole. On top of it, the with the global peers, India’s per growth is expected in these government's focus with capita logistics spend is much sectors along with the assistant various incentives while provi- below at $ 280 against China’s If you are an investor ready to stay invested with a three to five-year horizon, transportation and logistics theme, which is currently in an evolving stage, may make for a good investment proposition.
\"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, OCTOBER 2022 Fund Review ICICI Prudential Value Discovery Fund Outlook Money | November 2022 Naren, one of the most seasoned fund He is known for his value style of investing, managers in the Indian mutual fund industry. which bodes well for the fund, given its The fund has a long legacy of superior objective. This fund is a decent choice for performance, and the huge corpus it has ICICI Value Discovery Fund investors looking for capital appreciation by created for investors over the years is is one of the largest and investing primarily in a well-diversified testimony to that. It is one of the largest and best performing funds in portfolio of value stocks. The fund adopts a best performing funds in its category. its category. “bottomup” strategy to invest in assest based on parameters such as price to The fund invests in value stocks across earning, price to book value and dividend market capitalisations and sectors. The fund yield. conserves cash in the absence of value opportunity in the market. ICICI Value Discovery Fund is managed by Sankaran
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 9TARAKKI TIMES, OCTOBER 2022 Equity SIPs 'Timing' entry via valuations may be a better bet The Economic Times | October 24, 2022 Financial planners are asking methodology of a fund house transfer up to a maximum of `1 (0.5x) of the base SIP amount. equity mutual fund investors to that uses market valuations, the lakh that month to the chosen The valuations are decided using opt for systematic investment full amount of `10,000 is first equity fund. a combination of the adjusted plans (SIPs) that use market invested in a chosen scheme, trailing price-to-earnings ratio valuations as a tool to allocate to namely a liquid fund, ultra short- If valuations are expensive using (P/E ratio), and trend as well as stocks, instead of plain vanilla term fund or equity savings fund. ICICI's model, it will transfer a sentiment data. SIPs. Over the long term, this minimum of `1,000 per month to methodology will generate Then, based on the model that the equity fund chosen by the Samco MF, a new entrant in the higher alpha of 1-3% per year the fund house follows for investor, with the balance industry, uses a tool that deter- compared with plain vanilla SIPs, valuations, it decides the amount amount continuing to be accu- mines the right time to invest according to them. to be invested in the targeted mulated in the liquid fund. This more or less in equities, with the equity mutual fund scheme on process will continue every help of a proprietary Equity \"Sophisticated investors who the next day. month. Margin of Safety Index (EMOSI) want to allocate more money indicator. when valuations are low and less For example, an investor can However, when valuations turn when they are high, and like a start a booster SIP in ICICI cheap as per the model, ICICI can H o w e v e r, s o m e f i n a n c i a l process-driven approach, use Prudential Equity Savings Fund transfer up to 10x the base planners say investing lumpsum this method for investing,\" said S or ICICI Liquid Fund of `10,000 month, which in this case could when markets dip sharply could Shankar, CFP, Credo Capital. per month. On the date of the SIP be `1 lakh, to the equity fund. work even better. Shankar said investors can investment, using the ICICI allocate money for near-term valuations model, it can transfer A study by ICICI AMC shows that “A marginal increase or decrease goals, which are less than five anywhere between 0.1 times if an investor held a normal SIP in in averaging does not make years away, using this method. and 10 times the base target the Nifty 50 from April 2005 to much difference to returns,\" Many fund houses and distri- amount. April 2022, the CAGR return said Vidya Bala, cofounder, butors have started offering would be 11.6%, compared with Primeinvestor.in, a retail research these products as a way of So, if valuations are expensive as 12.7% if the booster method that platform. \"Investors are better off differentiating themselves. they are currently, the fund invests based on valuations is deploying lumpsums in addition house is transferring just `1,000 used. to simple SIPs in market falls.\" In a plain vanilla SIP, if you choose to the equity fund, with the to invest `10,000 every month on balance accumulating under Many other mutual fund houses the 10th of the month, the entire ICICI Prudential Liquid Fund. have launched variants of SIP for money is invested in the chosen investments using valuations. scheme, irrespective of market If valuations turn cheap, in valuations. subsequent months the fund Kotak Mutual Fund decides house could increase the whether equity valuations are However, when an investor amount to 10x of the base 'cheap, neutral or expensive', the chooses to invest based on a amount, which means it could default SIP instalment will be half Some advisers say investors may be better off doing lumpsum allocations when markets fall in addition to a plain vanilla SIP.
\"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, OCTOBER 2022 Fund Review Optimising Systematic Transfer Plan Outlook Money | October 2022 You may increase the instalment amount when market levels are lower, and vice-versa, to maximise returns from STP. You could do this yourself or through mutual funds. With the equity market behaving higher instalment than usual model based on valuation ratios The source and target funds are the way it is, many investors are when market levels are relatively (PE, PB, yield gap), trend ratios the same as in the prior instance. in a dilemma about whether to lower, and vice-versa. (linear momentum, momentum The base amount of STP is the invest fresh money or not, and reversal), volatility ratios, etc. The same as earlier. The multiplier on how much and when. A syste- If you do this yourself, you will be multiplier range is 0.2 to 5 times. the base amount in the Booster matic transfer plan (STP) can tempted to time the market. For STP mechanism is 0.1 to 5 times solve the dilemma. Historical example, during a correction, Effectiveness Of STP the base amount, based on the data shows discipline helps in you may want to wait a bit longer market movement. As of June systematic, phased-out inves- before increasing your instal- As mentioned earlier, disciplined 30, 2022, the value would have ting. That's because at relatively ment. But mutual funds can also investment is better than been `21.46 lakh, a CAGR of lower market levels, you end up provide a solution. investing a lump sum. Let us look 18.07 per cent, as per back- buying more with the same at an example. Suppose `12 lakh tested data. The reason for this quantum of money. For example, ICIC1 Prudential was invested in a source fund robust alpha-18.07 per cent over Booster STP, launched in August (Crisil Short Term Fund Index) in 10 per cent or 11.17 per cent-is The concept of systematic 2021, which has multiple debt January 2019, and an STP of `1 that in 2019, the STP amount was investment plan (SIP) is similar to funds as source funds and lakh per month was opened. The lower than `1 lakh a month, giving post-dated cheques for multiple equity funds as target target fund was the Nifty 50 driven by their internal index. In future payments. Unlike in an SIP, funds. Under the Booster STP Index Fund. As on June 30, 2022, early 2020, the STP amount was STP is where you have the method, they cut the instalment this value would have become over `1 lakh per month due to the money today, which you can park significantly at higher market `17.38 Iakh a compounded steep market correction. in a defensive (liquid or debt) levels and raise it manifold on annual growth rate (CAGR) of mutual fund (MF) scheme and market corrections. They have an 11.17 per cent. To gauge the Conclusion invest it systematically. Here, the internal Equity Valuation Index efficiency of the STP system, let You may invest a lump sum if you post-dated cheques are pegged for taking this decision. The ICICI us take the mid-point of 2019 as have a long-term horizon, say, 10 not to your future earnings but to Equity Valuation Index is calcu- the start date of the Nifty 50 years or 20 years. But, if you have the corpus in the defensive fund, lated by giving equal weights to calculations. As on July 1, 2019, a medium-term horizon, say, 5 or called the source fund. From the price-to-earnings (PE), price-to- Nifty was at 11,865 points, and 7 years, an STP may be a better source fund, equated amounts book (PB), government secu- on June 30, 2022, it was a option to help optimise your are moved to the target fund, rities-to-PE, and market cap- to- 15,780, a CAGR of 10 per cent. returns. which is, typically, an equity fund. GDP ratio. The STP amount is Here the alpha or extra return of It can help control the urge to variable, and the range is 0.1 to 5 the STP mechanism over lump The writer is a Corporate Trainer time the market. times the base or usual amount. sum investment is 11.17 per cent and Author over 10 per cent CAGR. Optimising STP Another example is Aditya Birla Sun Life Asset Management As against a regular STP, let us One approach to using an STP Company's recently launched say `12 lakh was invested could be that, as against lump Turbo STP. It follows an in-house through the ICICI Prudential sum investment, you invest a Equity Valuation Multiplier (EVM) Booster STP in January 2019. Under the booster STP method, the fund reduces the instalment at elevated market levels and increases it on market corrections, by using an internal equity valuation index method.
\"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, OCTOBER 2022 4 fund aces up your sleeve Hindu BusinessLine | October 30, 2022 Winning Hand. Here are 4 promising themes to play via the MF route, highlighted by Kumar Shankar Roy Stock markets around the world Year to date, Nifty 50 and Sensex India to grow at 7 per cent in turing, infrastructure, financial have turned volatile this year are up over 2 per cent when FY23. This places the Indian services and transportation/ amidst fears of monetary policy China (Hang Seng) is down 36 economy, the 5th largest now logistics. tightening. The US Fed has per cent, US (Nasdaq) is down 29 after overtaking the UK, on track aggressively hiked rates there to per cent, Germany (DAX), down to pip Germany in 2027 and All these investment plays are tame inflation. Higher interest 17 per cent and France (CAC 40) Japan by 2029 at the current rate multi-year opportunities, given rates have dampened bullish down 12 per cent. of growth, as per an SBI research the anticipated growth in the sentiment towards riskier ass- report. In this backdrop, inves- Indian economy. We highlight for ets, as central banks elsewhere India appears to be relatively tors in India today have an you the best-in-class offerings in the world had to follow well-placed, like a steady ship in opportunity to dig their heels available in the MF route to through. However, Indian equi- choppy waters, given stronger deep and increase exposure to capitalise on these attractive ties have been an outlier of sorts macro fundamentals compared four select themes to bet on the thematic opportunities. amidst this gloom and doom. to many peers. The RBI projects domestic economy - manufac- Manufacturing Indian manufacturing sector, demand, Government’s drive to Banking and finance thanks to phased manufacturing encourage manufacturing, and a India missed the manufacturing programmes, ‘Make in India’ distinct demographic edge. The banking and financial bus in the eighties. Now, focus, Production Linked services sector serves as a proxy with China+1 becoming a Incentive (PLI) scheme, 100 per The manufacturing sector could to India’s growing economy. This geopolitical imperative, it is an cent automatic foreign direct outpace overall GDP growth by broad universe appears well- opportune time for India to investment in sectors, tax cuts, approximately 4 per cent, leading placed for meaningful growth, expand the manufacturing single-window clearance sys- to an incremental contribution with tailwinds such as improving sector. Real manufacturing gross tem, import duty protection, etc. opportunity of $300-$500 billion credit growth (nine-year high of fixed capital formation is to the economy in 2030, as per 16 per cent yoy in September expected to rise from 5.5 per What might favour today is the Mirae Asset. 2022), adequately capitalised cent to 7 per cent levels of GDP potential for significant domestic balance sheets, clean-up of by FY27. This is expected on the Funds: Given the short time NPAs, etc. The Government back of a renaissance in the period that the theme has been thrust on infrastructure and in focus, go for options with manufacturing is expected to some track record. The funds provide impetus to the credit that fit the bill here are ABSL demand. Retail credit has been Manufacturing Equity and ICICI increasing at a steady pace over Pru Manufacturing. The latter has the last few years and is done better in terms of beating expected to grow, given the benchmarks. under-penetration of retail credit in India. Auto stocks are a big bet for both funds but while ABSL’s top Over the past decade, India’s preferences are consumer non- financial services sector has durables and pharma, the ICICI been hammered by demone- Pru offering favours petroleum tisation, IL&FS crisis, YES Bank’s products and cement . collapse, etc. But, investing in high-quality financial stocks has Cost-conscious investors can proven to be rewarding. Not just use Navi Nifty India Manu- banks, NBFCs, insurers, asset facturing Index Fund (direct plan: managers and brokers have a expense ratio of 12 bps) or Mirae massive opportunity to conso- Asset Nifty India Manufacturing lidate market shares. Nifty Bank ETF (36 bps). While the S&P index is expected to show 30 per BSE Manufacturing Index has cent earnings growth over CY21- outperformed S&P BSE 100 in 23, as per Bloomberg consensus the last one year, there is a expectations. tactical opportunity for the manufacturing sector, given its Funds: We prefer at least 5-year under-performance in 3- and 5- track record funds that have year periods. balanced exposure to financials across domains such as banks, finance and insurance - for
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 12 TARAKKI TIMES, OCTOBER 2022 Fund Review Logistics and transportation Rapid urbanisation is acce- In case of logistics and trans- lerating growth in personal portation, enablers such as mobility requirements. Addi- increased cashless payments, tionally, powerful enablers such regulatory changes/policies such as strong demand-led recovery as National Logistics Policy (NLP) cycle and margin improvement and PM Gati Shakti, techno- provide visibility for strong logical advancement and export earnings growth for the auto/ potential are positive. transportation and logistics sector. After a hiatus starting well For logistics service providers, before the pandemic, the auto factors such as e-commerce, cycle is finally looking up now, rise in foreign trade, unorganised with utility vehicle (UV) and to organised market shifts post commercial vehicle (CV) sales GST and improving infrastruc- leading the pack. Replacement ture are boosting fortunes. demand, order backlog and lower inventory are key drivers Funds: Those who have a high here, apart from long-term ones appetite for risk can consider UTI such as the shift to electric Transportation and Logistics. vehicles. Nifty Auto is expected Choose Nifty Auto ETFs (Nippon to show multifold growth in India and ICICI Pru) and the index earnings over CY21-23 period, as fund from IPru to track the per Bloomberg consensus underlying basket at a low cost estimates (direct plan: 20 bps). instance, ABSL Banking & funds show that Nifty Bank total Financial Services (60:29:6), return index has been hard to ICICI Pru Banking & Financial beat, for the majority. Services (55:29:10) and Nippon India Banking & Financial So, passive funds may be a Services (60:31:5). SBI Banking & better way to play this theme. Financial Services is the only Edelweiss ETF-Nifty Bank (5 bps) offering that has beaten and Navi Nifty Bank Index Fund benchmark on 1-, 3- and 5-year (10 bps) are the cheapest in the returns. respective sub-segments. In terms of lowest one-year Three-year and 5-year rolling tracking error, ICICI Pru Nifty returns based on last 10 years of Private Bank ETF and SBI Nifty the biggest actively-managed Private Bank ETF are alternatives. Infrastructure infrastructure theme can go show double-digit CAGR growth diversification in terms of top through extended periods of over CY21-23, as per Bloomberg sectoral and top stocks concen- With India aiming to be a $5- under-performance as it did in consensus estimates. tration. Across infra funds as a trillion economy, the focus on 2018 and 2019. Note infra category, Industrial Products, infrastructure development has projects are long-gestation in Funds: About half of infra- Construction Projects, Industrial deepened in many ways over the nature and there is a long wait structure-oriented thematic MFs Capital Goods, Power, Cement last few years. Investments in involved. Nifty Infrastructure have beaten relevant bench- and Banks are top choices and infra have a snowballing effect index earnings are anticipated to marks in 1-, 3- and 5-year periods, this plays out for the recomm- on growth in several supply and while half a dozen have also ended funds. Tata and Kotak d e m a n d - s i d e c h a n n e l s . To outshined category average offerings are more mid- and achieve GDP of $5 trillion, India returns. We prefer Kotak Infra & small-cap oriented but ICICI Pru needs to spend about $1.4 trillion Eco Reform, ICICI Pru Infra- appears to have preferred large- (over `100 lakh crore) on structure and Tata Infrastructure caps more. infrastructure, according to on account of better portfolio government calculations (Eco Survey 2020). It is a multi-sector opportunity spanning asset owners (roads, railways, ports, power and telecom), asset financiers (lenders) and asset creators (construction, cement). Infrastructure as a theme came into vogue in 2004 and picked up pace till 2008 before the global financial crisis spooked markets. Due to concentrated exposure,
\"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 13TARAKKI TIMES, OCTOBER 2022 Distributor Insights Equity Market Outlook Business World | November 05, 2022 Rajesh Kumar on the Indian economy as well. Here, one can consider dynamic Here, the portfolio can hold a The Indian Rupee has depre- asset allocation or balanced maximum of only 30 different Managing Partner, ciated by over 10% in the current advantage category of scheme if stocks. Truegain Advisory Services LLP calendar year so far. India being the allocation required is across heavily reliant on fuel imports, equity and debt. If an investor is Unlike the two aggressive equity As of early October 2022, the the Rupee depreciation adds to looking for allocation to gold and allocation mentioned above, if Indian equity markets are in the the coun-try’s import bill. other asset classes, along with you are an investor looking for a middle of another round of equity and debt, then they may relatively conservative equity volatility. After reaching a peak in Further as the Foreign Insti- consider multi-asset category. exposure, then dividend yield October 2021, the benchmark tutional Investors reallocating fund can be an option. In such a Nifty 50 index has witnessed their funds outside India, in Equity allocation fund, the portfolio will consist three rounds of corrections and favour of the US Dollar, is another of names which are known to advances of over 10%. This factor weighing on the Rupee. For equity allocation in a port- declare high dividends in a includes a steep correction of Owing to all these, both the RBI folio, if the investment horizon is steady manner. 15% in June, and then a sharp and the World Bank have cut long-term in nature, then one rise of 18% between June and India’s GDP growth forecast for may consider value investing All indicators like tax collec- August. When compared to the ongoing financial year. through value fund, especially at tions, demand for automobiles, global markets, the performance a time when valuation is not investments in infrastructure, of Indian equities paints a better While it is clear that the Indian cheap any longer. Here, the fund government’s push on economic picture with the Nifty 50 correc- economy is in a much better manager will opt for names reforms and a large share of ting a modest 2.6% in the last shape than global peers, vola- which are under-valued but is young population point to a one year as compared to the US tility in the markets is a reality and likely to gain over time given their bright economic future for the market (S&P 500) which was must be taken into account for strong fundamentals. country. down 15%. In other words, the investment decisions. Indian market outperformed the Another option an investor can The launch of 5G telecom US markets by a huge margin. Balanced approach is key consider is that of a business connectivity is also expected cycle fund. Here, basis the eco- to unleash another wave of During the same period, the Maintaining the right balance in nomic trend, the fund manager internet-fuelled economic Indian economy has witnessed a investments has become more will invest in a set of sectors growth. Given the combination sharp revival from the effects of important than ever. The Indian which are likely to gain from at of current volatility and future the Covid-19 pandemic. The equity markets have comm- that stage of the cycle. promise of Indian economy, Indian GDP for April-June 2022 anded a higher valuation when investing via Systematic Invest- saw a growth of 13.5%, which compared to global markets, and As a result, the portfolio may be ment Plans emerges as an ideal even though below expec- this is likely to continue. In such concentrated in terms of sector choice. It helps in tackling some tations, was the highest among an environment, it is important to but will be well diversified within of the risks of greed and fear trap the G-20 economies. spread one’s investments across a particular sector. by staying disciplined with one’s asset classes like debt, gold and investments and accumulating Other developments in recent not stay confined into equities On the other hand, if the investor assets in a staggered manner. past like the Russia-Ukraine alone. For this purpose, investors is looking to take exposure to the conflict, global inflationary press- can consider investing into just top companies, then a ures and the resultant interest hybrid funds. focused fund can be an option. rate increase is now taking a toll It is important to spread one’s investments across asset classes like debt, gold and not stay confined into equities alone. For this purpose, investors can consider investing into hybrid funds.
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 14 TARAKKI TIMES, OCTOBER 2022 Channel Partners Distributor Insights Two lenses to look at the stock market Outlook Money | October 2022 When it comes to equity investing, there is always a plurality attached to the investments. Each investor has a unique approach to the market. But broadly, investors either wear short-sighted or far- sighted lens. Abhishek Mohta Market’s Long-Term Returns”. behavior of the market over long years, and only 3% of the The compounded return of the term. Both earnings and Nifty population is old. This statistic CFP Nifty Index since the year 2000 levels are approximately up by 12 has a huge impact on our Founder & Partner, has been 11% annually. But it is times since the year 2000, and economy. The younger the Trustedarms Wealth only in 2 out of the last 22 years this is not at all coincidental. The population, more is the earning that the return has been blended values of the Nifty potential, ability to spend and Type 1 Investors anywhere between 10 - 12%! In companies always mirror their contribute to the Indian eco- all the other years, the market earnings. Don’t make the nomy. This growth fueled by the Investors wearing short-sighted was either much more or much mistake of reading past this too Indian demographic benefits the lens are those whose actions are less optimistic than the long- quickly, because you have just top Indian companies. You not mostly based on the latest term figure. discovered why stocks have only recognize the names of market environment, what are gone up so much over the last these companies, but you and the stock prices are right now or My observation for the short two decades. In the long run, it is your family use their products where is it expected to head in term is - the stock market always the corporate earnings that have and services regularly - some as the near future and the likes. overreacts, be it on the downside always driven the market. See often as daily. As these com- These participants track index or upside, and nobody can the below image which depicts panies make more and more minute to minute, day to day, predict where the movement will the market movement and profit, their shareholders find month to month, and quarter to be. John Kenneth Galbraith earnings. their investments not just grow- quarter, and their obvious quoted, “The only function of ing but compounding in value question always is “market kya economic forecasting is to make This brings us to another interes- over time. lagta hai” to which there is never astrology look respectable” ting aspect as to how the Indian a correct answer. But the reality Medium Term (4 to 7 years): The demographic has favored long- To conclude, the investor who is if one were to track the stock market mood swings moderate term investments in the equity looks at the stock market market behavior – it varies across somewhat, but it can still market. through the second lens is the short, medium, and long term. overreact. That is, somewhere one who will see their money along here you can reasonably India consumes what it pro- growing and compounding like a Short Term: Anywhere within a expect the stock market to be duces. The 141 crores consumer dream. year to 3 years, you can and edging toward some objectively population has always been should expect the stock market verifiable economic and/or bliss. Today, more than 50% of Happy Investing! to behave not just irrationally but financial reality. In India, during our population is below 25 years, extremely so - in response to the the global financial crisis, the 47% is in the age bracket 25-69 fear or fad of the moment. I call it, index fell from that time peak of “The Bumpy Road between 6,200 (Jan 11, 2008) to 2,620 Blue Line: Nifty movement graph, Brown Line: Earnings growth of Nifty Companies, (March 06, 2009). It took just 18 Source: nifty-pe-ratio.com Figure 1 months to recover from the lows and now it has grown six times from there. The market reacts in the medium term as well, but the probability of getting a negative return has been NIL on a rolling 7- year window. Type 2 Investors Now, coming to the investors wearing far-sighted lens. Such investors tend to reflect the
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Tarakki Corner 15TARAKKI TIMES, OCTOBER 2022 Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Rajan Nagpal Panipat, Mutual Fund Distributor Rajan Nagpal, 40, a Panipat-based mutual fund distributor for the last 8 years; manages an AUM of ` 100 crore. With a focus on retail, he currently services nearly 700 clients and has a monthly SIP book size of ` 70 lakh. His passion and firm belief, along with an absolute focus on client's benefits, has made him a success story. During his college days, Nagpal was fairly sure that he will continue his father's blanket business. However, tragedy struck in 2001 when his father passed away and Nagpal could not take the business forward. Just 20-year-old then, he did not know what to do. After passing out from college in 2002, he got into insurance distribution business and was introduced to the world of financial products. “By 2009, I realised that insurance distribution was not enough and there was a need to expand the product base,\" Nagpal explains. He devoted his time to read finance-related literature. In 2013, Nagpal stepped into MF distribution. It was quite a change for him, given his insurance background. \"It was challenging, as I had to learn on the go. Financial distribution is a business of trust, which comes only with time,\" he points out. Nagpal had to create a new market and thus started meeting people for investment in mutual funds. \"The question I was most often asked was-Why should I give you any business? To this my response was whether you trust me with your investment, I will keep meeting you regularly,\" he laughs. Over time, thanks to his work ethic, Nagpal won the potential investor trust and investment slowly followed along with referral businesses, adds Nagpal. According to him, \"In distribution business, referrals are very important. It is like creating a long chain. The client feels connected and is ready to trust you when you go through a reference.\" In the early phase of his career, Nagpal learned a distributor can't afford to stop meeting clients. \"The day I stop, the downfall begins,\" he says. Lack of asset allocation in investors' portfolios is something that worries Nagpal. He says people tend to have concentrated asset class exposure, which could be very dangerous. \"While doing financial planning, I educate investors about the benefits of SIP and why asset allocation is important. I can't afford to mis-sell to clients. It will backfire,\" says Nagpal. Since people in India are underweight on equity, it is an enormous challenge to explain why investments in equity products are important and how it can aid in wealth creation, he adds. In 2018, already five years into the MF business, Nagpal faced some challenging times. His investors started asking him about returns. \"I remember returns were 6-7% even after 5-6 years of investments. Many of the clients countered me saying that if they had done PPF or VPF, they would have generated far better returns,\" he recalls. It was here investor education kicked in. \"I kept explaining to my investors, showing the last 20 years' return record. I told them equities will perform, but you need to wait. Essentially, I was educating them on the patience part of investments. And it worked, 95% of my investors stayed put,\" says a confident Nagpal. All those investors are quite happy now as the markets did well in the last two years, pushing the compounded returns to beyond 15%. “This positive turn of events has aided in strengthening relationship with several of my clients. They understood I will always prioritise their benefits and thus their trust, confidence and willingness to remain with me has improved further,\" he adds. Nagpal does not believe in chasing AUM targets. \"I will be a salesperson then, which I am not,\" he says with a firm voice. With targets, you create expectations which may hamper business, work ethics, and my relations. It won't be good for anybody, he adds. Outlining his success mantra, Nagpal sums up, \"Keep working towards your clients' interest. AUM will follow. Ultimately, what is good for clients is good 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.\" 16 TARAKKI TIMES, OCTOBER 2022 Tarakki Corner Your YTouar TraarakkkikCoirnCer orner TARAKKI SUCCESS STORY Deepak Goyal Rajpura, Mutual Fund Distributor Deepak Goyal, 40, is a Rajpura (Patiala) based MFD with an investor asset base of ` 85 crore and a SIP book of ` 65 lakh. He serves 1,300 retail clients with a conviction that mutual fund is the path for wealth creation. Since financial distribution was a family business, Goyal had an inclination towards this profession. After a year in the job, he joined the insurance sector in 2004 but was not happy with the work ethics. He registered as an MFD in 2008 when the crisis hit the global financial market. With a value erosion of nearly two third in stock markets, Goyal had a tough start. He laughingly jokes, \"It was as if I got my head shaved and a hailstorm began.” Being a newcomer amid a crisis, it was difficult for him to build trust among investors. However, the events which unfolded during that phase helped Goyal learn the nuances of mutual fund distribution faster. For him, mutual funds offer a 'principle of equality' to all investors - big and small alike. Despite initial hiccups, Goyal was clear that he needed to make investors believe in India's growth story. He has a firm belief that mutual funds are not for months or few years; rather it is a long-term story. \"That's why, I categorically ask clients why they are investing.” He gives credit to his parents for the ethics and honesty he could bring in his business - with sole focus on goal and need-based investing for clients. \"Business means trust, I learnt it very young. I knew that challenges were part and parcel of any business and I should endeavour to remain relevant to my customers while adapting to changing times,\" he explains. According to him, a distributor needs to nurture the client like a kid for the first three years - a crucial period. Once this phase gets over, clients are like mature adults which helps build long-term relationships, he adds. The entry load ban in 2009 did not let Goyal deviate from mutual fund distribution. \"I work for my own satisfaction and fulfillment of clients' financial goals. Money is important but it is secondary. Honestly speaking, we are getting satisfactory payouts to maintain our quality services\" he says with a serious tone. The years post the financial crisis made Goyal a mature investment professional. Earlier he would anticipate that if markets did not do good for a year, it would do better the next year. “That perception changed during this phase as I saw markets behaving in a different way. Managing investors' behaviour gained more importance than simply managing their money,\" he reminisces. A longer than usual dull phase also helped Goyal learn the handholding aspect of financial product distribution, irrespective of the market conditions. He educated himself about asset allocation strategies while distributing mutual funds. As the upswings came in the market post 2013, Goyal's continuous hard work showed benefits. His conviction that mutual fund is a long-term business further strengthened. The Upfront Ban in 2018 briefly made Goyal rethink whether he could survive in this sector. \"But when I considered the other perspective, I could see a reduction in competition,\" he smiles. He stayed put and today \"people in Rajpura know Deepak Goyal as Mutual Fund,\" he says happily. He is proud that already over a dozen of his clients have turned millionaires. \"It's a great source of happiness when you groom your clients for years and see them achieve their financial goals,\" says an emotional Goyal. Despite being in the mutual fund business for nearly one-and-a-half decades, Goyal considers spreading awareness about financial products a big necessity. \"I can't find any alternative to mutual funds; there is still a great need for making people aware about it,\" he says. His advice for newcomers in mutual fund distribution: One should not think about earning for the first 5-7 years. Concentrate on learning and improve yourself on a daily basis while offering only need-based solutions through mutual funds. \"Focus on relationships, build trust and be honest. If you focus on payouts, this business is not for you,\" he pinpoints.
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 17TARAKKI TIMES, OCTOBER 2022 List of ICICI Prudential Funds in Star Track Mutual Fund HBL | September 2022 Scheme Name BL Rating Trailling Returns (%) 10 Year CAGR 1 Year CAGR 3 Year CAGR 5 Year CAGR 14.7 14.9 ICICI Prudential Bluechip Fund 3.5 17.3 11.7 14.9 ICICI Prudential Large & Mid Cap Fund 6.4 21.9 12.1 17.7 ICICI Prudential Multicap Fund 1.8 17.3 11.3 16.9 ICICI Prudential Midcap Fund 2.7 22.3 10.9 13.7 ICICI Prudential Smallcap Fund 7.3 30.0 13.4 17.6 ICICI Prudential Focused Equity Fund 2.1 22.2 12.3 ICICI Prudential Value Discovery Fund 9.2 25.2 13.7 15.2 ICICI Prudential Long Term Equity Fund -0.1 18.0 12.4 - (Tax Saving) 13.9 13.8 ICICI Prudential Dividend Yield Equity Fund 8.4 23.0 9.7 15.6 ICICI Prudential FMCG Fund 21.6 ICICI Prudential Infrastructure Fund 17.6 14.2 12.4 16.4 ICICI Prudential Banking & Financial Services 12.4 ICICI Prudential Technology Fund 17.6 25.7 12.1 10.1 ICICI Prudential Equity & Debt Fund 14.4 ICICI Prudential Balanced Advantage Fund -1.3 10.9 7.7 ICICI Prudential Regular Savings Fund - ICICI Prudential Nifty Next 50 Index Fund -16.4 34.3 26.1 - ICICI Prudential Nifty Private Bank ETF Fund - ICICI Prudential Midcap Select ETF Fund 9.1 21.6 13.4 - ICICI Prudential Nifty 100 Low Vol 30 ETF Fund - ICICI Prudential Alpha Low Vol 30 ETF Fund 6.4 12.4 9.8 - ICICI Prudential Silver ETF Fund 14.9 ICICI Prudential Global Stable Equity Fund (FOF) 4.2 9.1 8.1 12.3 ICICI Prudential US Bluechip Equity Fund 1 Year CAGR ICICI Prudential Child Care Fund (Gift Plan) 1.2 14.4 7.5 4.2 3.7 ICICI Prudential Liquid Fund 3.6 8.6 - 5 Year CAGR ICICI Prudential Equity-Arbitrage Fund 6.1 -1.5 18.2 7.5 6.5 ICICI Prudential Ultra Short Term Fund 6.0 ICICI Prudential Savings Fund 0.6 15.1 12.2 6.7 ICICI Prudential Money Market Fund 6.5 ICICI Prudential Short Term Fund 1.6 - - 6.2 ICICI Prudential Medium Term Bond Fund 5.7 ICICI Prudential Bond Fund --- 7.0 ICICI Prudential Long Term Bond Fund 6.9 ICICI Prudential All Seasons Bond Fund -1.8 8.5 8.4 7.2 ICICI Prudential Corporate Bond Fund 6.4 ICICI Prudential Credit Risk Fund -9.5 11.6 13.6 7.2 ICICI Prudential Banking & PSU Debt Fund 6.9 ICICI Prudential Constant Maturity Gilt Fund 2.5 13.5 9.2 6.4 ICICI Prudential Gilt Fund 1 Month Absolute 3 Month Absolute 6 Month Absolute ICICI Prudential Floating Interest Fund 6.2 5.4 4.8 4.4 4.9 3.7 1 Year CAGR 2 Year CAGR 3 Year CAGR 4.0 4.1 5.1 3.6 4.3 5.7 4.2 3.9 4.8 3.8 4.3 6.4 3.4 4.9 6.9 2.2 2.7 5.8 0.1 0.5 4.3 3.6 4.4 7.1 3.9 4.3 6.4 4.6 5.8 7.2 3.7 4.3 6.1 -0.2 1.6 5.6 2.7 3.6 6.8 3.2 4.4 6.0 Source: NAV India; NAV for the growth option as on 28-10-2022. Past performance may or may not sustain in the future.
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" 18 TARAKKI TIMES, OCTOBER 2022 Fund Review mint List of ICICI Prudential Funds in Mint 20BEST FUNDS Mint | October 2022 HYBRID 3-year return (%) 5-year return (%) Corpus (Rs cr) BALANCED ADVANTAGE ICICI Prudential Balanced Advantage Fund 12.07 9.78 42,989 DEBT Corpus (Rs cr) CDREBEDT-IOTRRIIESNKTED 1-year return (%)* 3-year return (%) ICICI Prudential Credit Risk Fund 4.43 7.26 7,903 *Absolute Returns ETW Funds 100 List of ICICI Prudential Funds in the Economic Times Wealth ET Wealth | October 2022 FUND Value Research Returns (%) Fund Rating 6-month 1-year 3-month 3-year 5-year 7.39 11.65 EQUITY: LARGE CAP 6.88 6.40 1.49 17.12 13.16 ICICI Prudential Bluechip Fund 5.98 7.53 6.04 -1.52 15.95 - ICICI Prudential S&P BSE Sensex Index Fund 7.40 13.60 EQUITY: FLEXI CAP 2.90 4.26 8.36 19.67 13.38 ICICI Prudential Retirement Fund - Pure Equity Plan 1.56 8.07 EQUITY: VALUE ORIENTED 1.37 4.75 6.47 24.94 6.14 ICICI Prudential Value Discovery Fund 1.79 6.54 HYBRID: AGGRESSIVE (EQUITY ORIENTED) 2.07 5.24 7.13 21.38 6.65 ICICI Prudential Equity & Debt Fund 1.92 6.98 HYBRID: CONSERVATIVE (DEBT ORIENTED) 3.34 3.92 9.08 6.85 ICICI Prudential Regular Savings Fund DEBT: MEDIUM- TO LONG-TERM 1.90 2.09 5.78 ICICI Prudential Bond Fund DEBT: MEDIUM-TERM 2.10 3.41 6.91 ICICI Prudential Medium Term Bond Fund DEBT: SHORT-TERM 2.58 3.80 6.40 ICICI Prudential Short Term Fund DEBT: DYNAMIC BOND 2.70 3.64 7.07 ICICI Prudential All Seasons Bond Fund DEBT: CORPORATE BOND 2.56 3.83 6.40 ICICI Prudential Corporate Bond Fund It is requested to note that in accordance with SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, certain Schemes of ICICI Prudential Mutual Fund are undergoing Fundamental Attribute change and mergers, as applicable. These changes will be effective from May 28, 2018. For further information please refer to notices and addendums available on our website in this regard. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information Document (SID) of the respective schemes. Please refer to the SID for investment pattern, strategy and risk factors. Tarakki Times is compilation of articles published in various newspapers/magazines. Due credit is given by disclosing the source for such articles/publication. The articles covered are excerpts of publication by an independent agency and is circulated to the empanelled Advisors/Distributors of ICICI Prudential Asset Management Company Limited (the AMC). ICICI Prudential Mutual Fund (the Fund) does not warrant the accuracy, reasonableness and/or completeness of any information. All data/information used in the preparation of this material is specific to a time and may or may not be relevant in future post issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The AMC (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The recipient alone shall be fully responsible/are liable for any decision taken on this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
\"The information contained herein is solely for private circulation for reading/understanding of registered Mutual Fund Distributors and should not be circulated to investors/prospective investors.\" Fund Review 19TARAKKI TIMES, OCTOBER 2022