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Mutual FundReview
October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund
November 19, 2009 | Mutual Fund Mutual Fund Review
November 20, 2017
ICICI Securities Ltd. | Retail MF Research
Note: Whenever, returns for the scheme are shown in the report, they are for the growth option of the scheme.
Mutual Fund Review
Equity Markets .................................................................................................... 2
Debt Markets ....................................................................................................... 3
MF industry synopsis .......................................................................................... 4
MF Category Analysis ......................................................................................... 5
Equity funds..................................................................................................... 5
Equity diversified funds ...................................................................................... 6
Equity infrastructure funds ................................................................................. 7
Equity banking funds .......................................................................................... 7
Equity FMCG Funds ............................................................................................ 7
Equity Pharma funds ........................................................................................... 8
Equity Technology Funds .................................................................................... 8
Exchange Traded Funds (ETF) ......................................................................... 9
Balanced funds ............................................................................................. 10
Monthly Income Plans (MIP) ........................................................................ 11
Arbitrage Funds ............................................................................................. 11
Debt funds ..................................................................................................... 12
Liquid Funds 13
Income funds .................................................................................................... 14
Gilt Funds 15
Gold: Outlook anchored to geopolitical worries, Fed movement ..................... 16
Model Portfolios ................................................................................................ 17
Equity funds model portfolio ......................................................................... 17
Debt funds model portfolio ............................................................................ 18
Top Picks ........................................................................................................... 19
ICICI Securities Ltd. | Retail MF Research
Page 2
Equity Markets
Update
Indian equity markets continued their uptrend and made new highs.
However, market witnessed some minor profit booking after making
fresh all-time highs in the first week of November 2017
Unlike the previous few quarters, which were marred by earnings
downgrades, corporate earnings, thus far, in Q2FY18 have not belied
expectations and have led consensus EPS for FY18 and FY19 to remain
stable. Retail consumer focused sectors like automobiles, consumer
durables, fast moving consumer goods (FMCG), media & entertainment,
hospitality and retail posted strong double digit sales growth indicating
a revival in consumer demand. Sectors such as cement also reported
better-than-expected volume growth
Incremental macroeconomic indicators have been stable to positive
with India improving its rank in ‘ease of dong business’ to 100 by
jumping 30 places. Core sector growth was stable at 5.2% in
September 2017 while fiscal deficit for H1FY18 was at 91.3% of full-year
target, down from 96% by the end of August 2017. PSU bank
recapitalisation was a major policy boost from the government, which
lifted market sentiments. The government also announced huge
infrastructure spending on roads and housing
The current up move is backed by broad based participation with
sectoral heavyweight Nifty Bank along with beaten down sectors like
telecom, infra and pharma witnessing strong participation. The
persistent outperformance of broader markets also highlights the
positive sentiment across larger section of the market and augurs well
for continuance of the up move, going forward
Mutual funds have been dominant buyers in CY17 as they pumped in
more than 1 lakh core in 2017 till November. Investment by mutual
funds is backed by consistent strong inflows by retail investors. Equity
oriented funds witness ~18300 crore of inflows in 2017 till October
Outlook
The disruption from the implementation of GST and demonetisation
seems to be over now with companies now. The benefit of both these
events is likely to be witnessed in the medium-term, going forward
The recent quarterly results were overall in line with expectations and
indicate that the recovery in earnings, going forward, could be far better
than widely expected
While some profit booking was witnessed in many stocks that had run
up, buying interest was also witnessed at lower levels. The same
indicates strong appetite for quality stocks at every lower level
The Government of India has announced a major recapitalisation plan
for PSU banks entailing a capital infusion of | 211000 crore in the next
two years. The government outlined the thrust being put on
infrastructure development as a matter of policy, with roads, railways,
housing, power and digital infrastructure key focus areas involving
capital expenditure. The same is likely to keep investors interest upbeat
The overall bias remains positive. However, given the sharp rally in
recent months, it is better to avoid lumpsum investment and continue
with the staggered buying approach
Nifty 50: Markets remain near all-time highs
7500
8000
8500
9000
9500
10000
10500
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Source: Bloomberg, ICICIdirect.com Research
Smallcap, midcap indices remain outperformer
1.8
1.7
0.4
-0.1
-0.4
-0.6
-1
0
1
2
BS
E S
mall cap
BS
E M
idcap
Sensex
BS
E 5
00
BS
E 2
00
BS
E 1
00
Source: Bloomberg
One month returns till November 15, 2017
Real estate, capital goods bounce back, healthcare,
metals drag
4
4
3
2
-1
-1
-1
-5
-6-6
-4
-2
0
2
4
6
Real Estate
CG
Bankin
g IT
Oil n G
as
Auto
FM
CG
Healthcare
Metals
Source: Bloomberg
One month returns till November 15, 2017
Research Analyst
Sachin Jain
Jaimin Desai
ICICI Securities Ltd. | Retail MF Research
Page 3
Debt Markets
Update
The Indian fixed income market was under pressure especially longer
dated securities with G-Sec yields moving sharply higher due to
concerns arising over fear of fiscal slippage, rising international crude
oil prices, higher US bond yields and continuing OMO sales by RBI
The yield on 10-year benchmark G-Sec is currently trading above 7.0%.
The yield on 10-year AAA corporate bonds ended the month at 7.60%
against 7.47% at the end of September 2017. Thus, corporate bond
spreads during the month narrowed to 62 bps against 72 bps in the
previous month
The government announced a | 2.11 lakh crore recapitalisation plan for
public sector banks involving issue of recapitalisation bonds worth
| 1.35 lakh crores and | 0.76 lakh crore through market and budgetary
sources. The exact nature and fiscal impact, if any, of the
recapitalisation bonds would be known over the next few months
CPI inflation for October was at 3.58%, a seven-month high. Inflation
over the last few months has been moving upwards mainly due to
volatile vegetables and other food items. A sharp rise in crude oil prices
has also started to have an adverse impact. A consistent rise above 4%
level (RBI’s medium term target) may have some negative impact on
long bond yields
In its monetary meeting at the start of October, RBI acknowledged that
food prices are likely to remain largely stable but outlined building up of
pricing pressures in fuel (largely from crude oil). It mentioned that
upside risks to the inflation trajectory could arise from fiscal slippages
due to farm loan waivers and state’s implementation of salary and
allowances. Factors like increased likelihood of US Fed rate hike later in
the year and quantitative easing (QE) retreat relatively soon could have
prevented a rate cut or change of policy stance
Almost all industrial commodity prices have risen sharply around 30-
50% over the last few months. Crude oil prices have risen sharply in the
last three months from around US$50 per barrel to above US$60 per
barrel. Although not a major cause of concern, a further rise in
commodity prices may lead inflationary concerns to re-surface
Outlook
Foreign portfolio investors (FPI), after having invested ~US$20 billion
since February 2017, have exhausted their investment limit. Absence of
further investment from FPI is also putting some pressure on G-Sec
yields
Although the overall view on the Indian debt market remains positive,
any sharp rally in G-Sec is not expected. Corporate bonds remain a
preferred investment option in the absence of expectation of any major
significant capital gains in government securities
Short-term accrual debt funds with mix of AAA/AA/A rated papers and
low expense ratio offer a better investment option
G-sec yields break above 7% after 14 months
5.5
5.8
6.0
6.3
6.5
6.8
7.0
7.3
7.5
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Source: Bloomberg
G-sec yield curve: Yields steepen across
maturities
6.14
6.41
6.67
6.74
6.20
6.59
6.887.05
6.0
6.2
6.4
6.6
6.8
7.0
7.2
1yr 3yr 5yr 10yr
Yie
ld (%
)
14-Nov-17 13-Oct-17
Source: Bloomberg, ICICIdirect.com Research
AAA corporate bond yield curve steepens across
maturities
6.88
7.19 7.09
7.67
6.99
7.30 7.33
7.90
6.4
6.8
7.2
7.6
8.0
1yr 3yr 5yr 10 yr
Yie
ld (%
)
14-Nov-17 13-Oct-17
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 4
MF industry synopsis
Mutual fund assets have shown remarkable growth over the last three
years, driven by record inflows into equity schemes and strong
performance. Total assets managed by mutual funds touched a fresh
record high of | 21.41 lakh crore in October 2017, up ~4.9% over the
September figure of | 20.40 lakh crore. This represents a ~31.44%
increase YoY and an ~30% increase from December 2016. Of the total
MF corpus, ~40% was held by income funds and ~33% by equity and
ELSS funds
According to AMFI data, systematic investment plans (SIPs) inflows for
October were at ~| 5600 crore, up from ~| 5500 crore previously. SIP
inflows averaged ~ | 3600 crore per month in FY17
In the trailing 12 months, the mutual fund industry saw a net inflow of
| 3.29 lakh crore. Out of the total net inflow, | 1.35 lakh crore came into
equity and ELSS funds, about 42%
Despite volatility in equity markets, inflows in equity mutual funds have
remained steady. October saw a net inflow of ~| 21805 crore in equity
and equity-oriented funds, which is in line with the monthly average
thus far in FY18. This trend reflects the increasing participation of
investors in mutual funds
Exhibit 1: Equity, equity-oriented funds receiving twice as much net
monthly inflows in FY18 as in FY17
1000000
1200000
1400000
1600000
1800000
2000000
2200000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Total AUM
Source: AMFI
Exhibit 2: AUM of Top 10 AMCs
288,827
283,632
244,179
239,601
202,652
153,854
117,419
99,539
85,828
72,567
50000
100000
150000
200000
250000
300000
350000
AUM
Source: ACE MF
Exhibit 3: Fraklin Templeton has highest proportion of equity AUM as
percentage of its AUM, SBI a close second
48%
47%
43%
41%
36%
36%
34%
34%
32%
29%
0%
20%
40%
60%
80%
Equity % Debt% Others%
Source: ACE MF. Data as of October 2017
Exhibit 4: Within retail category, equity funds witness significant inflows
in FY17…
-2000
4000
10000
16000
22000
28000
34000
40000
46000
52000
58000
EQ
UITY
BA
LA
NC
ED
OTH
ER
ETFs
ELS
S -
EQ
UITY
GO
LD
ETFs
GILT
FY16
Source: ACE MF. Data as on March 2017
ICICI Securities Ltd. | Retail MF Research
Page 5
MF Category Analysis
Equity funds
Infrastructure funds emerged as the best performing category of equity
funds for a third consecutive month. This category along with banking
as well as FMCG funds continued to outperform information technology
(IT) and pharma funds by wide margins. Pharma funds were in the red
to the tune of ~5.8%
In terms of market cap-based funds, midcap funds continued their
dominance over large cap funds. Overall, midcap funds were among
the best performing equity fund categories on a one year basis
Structural industrywide problems continue to plague pharma and
technology funds. Pharma stocks delivered a muted performance in
Q2FY18 amid persistent pressure over pricing, compliance issues and a
fear of shrinking growth in the large US market. Challenges to
traditional services, H1B visa issues and US government action fears
persisted on overhangs over technology stocks and consequently,
technology funds
Exhibit 5: Infrastructure funds continue to outperform other categories with pharma funds still
under pressure (returns as on November 15, 2017)
S
35.6
34.8
33.8
29.9
28.6
25.9
19.1
-5.8
13.1 1
7.5
13.6
12.6
12.2
9.3
3.5
1.4
16.8
24.9
14.9
15.0
18.2
15.3
16.9
14.9
-10
-5
0
5
10
15
20
25
30
35
40
Infrastructure Mid cap FMCG Banking Multi cap Large Cap Technology Pharma
Returns (%
)
1 year 3 Year 5 year
Source: Crisil, ICICIdirect.com Research ; Returns over one year are compounded annualised returns
Exhibit 6: Strong inflows continue into equity and ELSS schemes
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Oct-
16
Nov-1
6
Dec-1
6
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Net In
flow
( |
Cr )
Equity + ELSS
Source: AMFI, ICICIdirect.com Research
Exhibit 7: Robust inflow in equity funds pushes up AUM to cross | 7.0
lakh crore
400000
450000
500000
550000
600000
650000
700000
750000
Oct-
16
Nov-1
6
Dec-1
6
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
| lakh C
rore
Equity +ELSS
Source: AMFI, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 6
Equity diversified funds
Equity diversified funds witnessed robust growth over the last three
years, with AUM within each sub-category rising substantially. In the
last three years in FY14-17, the AUM of large cap funds rose 129%,
multi cap funds AUM rose 105% while midcap funds AUM rose 206%
Over this period, while all three sub-categories have delivered a strong
performance (Exhibit 8), midcap funds have done exceedingly well and
outperformed. This is reflected in the trend of broader indices
outperforming bellwether indices over this time frame. However, large
cap funds have reversed that trend at some points during the past few
months
Multicap funds are relatively more market cap agnostic and hold
positions in a wider range of companies than pure large cap funds or
pure midcap/small cap funds. Multicap funds generally hold around 50-
60% of their portfolio in large cap stocks and 30-40% in midcap stocks.
They have benefited by capturing a part of the midcap rally during this
period and, thus, outperformed pure large cap funds
In the present market scenario, bottom up stock picking across the
market segment is more important than allocation to a particular
segment or sub sector. Multicap funds offer fund managers flexibility to
allocate funds across all market segment and are, therefore, relatively
better placed
Exhibit 8: Robust AUM growth across all equity diversified fund sub-categories from 2014
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
|crs
Large Caps Multi Caps Mid Caps
Source: ACE MF
Recommended funds
Large cap
Birla Sunlife Frontline Equity
ICICI Prudential Focused Bluechip Equity
SBI Bluechip Fund
Multi cap
Franklin India Prima Plus Fund
Kotak Select Focus Fund
Motilal Oswal MOSt Focused Multicap 35 Fund
Midcap
HDFC Mid-Cap Opportunities Fund
Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund
(Refer to www.icicidirect.com for details of the fund)
View
Short term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 7
Equity infrastructure funds
The government recently announced its historic road building
programme to construct 83677 km of roads over the next five years at a
total outlay of | 6.92 lakh crore. This also includes the phase 1 of
Bharatmala project, which includes construction of 34800 km of roads
at an investment of | 5.35 lakh crore in the next five years. Government
spending and focused push towards sectors such as roads, railways,
housing and power could lead to greater opportunities to infrastructure
players, apart from the benefit of increased transparency in the system
A number of infrastructure related government schemes and the
introduction of new regulatory measures are expected to help
organised players in the infrastructure space over the medium to long
term, placing infrastructure and ancillary stocks on an attractive footing
Preferred Picks
Aditya Birla SL Infrastructure Fund Refer
www.icicidirect.com for
details of the fund
L&T Infrastructure Fund
Reliance Diversified Power Sector Fund
Equity banking funds
Q2FY18 results provided good news on the asset quality front as most
PSU banks reported lower slippages compared to the previous quarter.
Operating earnings of the banking system grew at a healthy rate of
12.2% YoY but higher provisions during the quarter impacted profits. A
key monitorable, going forward, would be the resolution of accounts
referred to NCLT in ensuing quarters
We remain optimistic on the banking sector keeping in mind the
anticipated pick-up in credit offtake. Steady margins and peaking out of
the NPA cycle is expected to further aid profitability
From a long term point of view, the recently announced PSU bank
recapitalisation programme is a structural positive for the sector. The
continued government push on financial inclusion, reduction in the
black economy, enhanced awareness and increased usage of digital or
electronic payments will be positives for the banking industry from an
operating cost perspective
Preferred Picks
ICICI Prudential Banking & Financial Services Refer to
www.icicidirect.com for
details of the fund
Reliance Banking Fund
UTI Banking Sector Fund
Equity FMCG Funds
Several FMCG companies enjoyed strong volume growth on the back
of restocking by trade channels in Q2FY18. Most companies witnessed
stong pre-festive demand along with healthy rural growth spurred by
good monsoon. Many companies are aggressively focussing on digitial
advertisement to reach larger audiences at a reduced spend.
We maintain our positive outlook on the FMCG sector backed by the
rural consumption revival led by largely normal monsoons and the
government’s focus on increasing farm incomes. We also expect GST
implementation to eventually provide a big boost to FMCG companies,
particularly those present in personal care and household categories
Preferred Picks
ICICI Prudential FMCG Fund Refer
www.icicidirect.com for
details of the fund
SBI FMCG Fund
View
Short-term: Positive
Long-term: Positive
View
Short-term: Positive
Long-term: Positive
View
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 8
Equity Pharma funds
Pharmaceutical companies reported a muted Q2FY18 performance as
expected. Q1FY18 was also quite poor for the sector. A challenging
environment in the US outweighed domestic formulations recovery
post GST implementation. Leading players in the US market continue to
be bogged down by price erosion borne out of intense competition and
client consolidation. Pharma, being a largely export-oriented sector,
faces additional pressure from emergence of a stronger rupee
However, despite these apprehensions, in the long term, we remain
optimistic about the sector’s prospects on the back of attractive
valuations and earnings momentum pick-up led by incremental product
launches in the US besides normalising Indian formulations growth
Preferred Picks
Reliance Pharma Fund Refer to
www.icicidirect.com
for details of the fund
SBI Pharma Fund
UTI-Pharma & Healthcare
Equity Technology Funds
Technology companies report muted results as expected, with cross
currency tailwinds helping Tier-I IT companies post 2.8% sequentially
higher dollar revenue growth in Q2FY18. Subdued corporate results
demonstrate the shifting business environment in the technology
sector. Future expectations would be centred around management
guidance. In the short-term, rupee appreciation, increased local hiring
and demand for investments in digital would need monitoring from a
margins perspective
We maintain our neutral stance on the sector as the industry faces
challenges related to US immigration rules and growing protectionism
around the world leading to marginal IT spending by companies. The
industry would continue to witness pricing pressure in its traditional
business, which is currently unable to offset newer revenue streams
from digital areas that enjoys higher margins
Preferred Picks
ICICI Prudential Technology Fund Refer to
www.icicidirect.com for
details of the fund
DSPBR Technology fund
View
Short-term: Neutral
Long-term: Neutral
View
Short-term: Neutral
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 9
Exchange Traded Funds (ETF)
In India, three kinds of ETFs are available: Equity index ETFs, liquid
ETFs and gold ETFs
An equity index ETF tracks a particular equity index such as the BSE
Sensex, NSE Nifty, Nifty Junior, etc
An equity index ETF scores higher than index funds on several grounds.
The expense of investing in ETFs is relatively less by 0.50-0.75% in
comparison to an index fund. The expense ratio for equity ETFs is in the
range of 0.05-0.25% while for index funds the expense ratio varies in
the range of 0.50-1.25%. However, brokerage (which varies) is
applicable on ETFs while there are no entry loads now on index funds
Tracking error, which explains extent of deviation of returns from the
underlying index, is usually low in ETFs as it tracks the equity index on
a real time basis whereas it is done only once in a day for index funds
ETFs also provide liquidity as they are traded on stock exchanges and
investors may subscribe or redeem them even on an intra-day basis.
This is unavailable in index funds, which are subscribed/redeemed only
on a closing NAV basis
In August 2015, the Labour Ministry decided to invest 5% of
Employees’ Provident Fund Organisation’s (EPFO) incremental corpus
in ETFs. The investment in equities is split between the Nifty ETF (75%)
and Sensex ETFs 25%. EPFO chose two ETF schemes of SBI Mutual
Fund—SBI ETF Nifty and SBI Sensex ETF
In 2016, the EPFO hiked the limit from 5% to 10% of its incremental
corpus of investment in equities, which was further increased to 15% of
its incremental corpus in May 2017. This is a positive move since
retirement savings, which are long term in nature, will be invested in
equities that have the potential to generate higher returns. So far, EPFO
has invested a total of ~| 22,000 crore in exchange traded funds as of
April 2017
Over 400 ETFs are traded globally. ETFs are transparent and cost
efficient. The decision on which ETF to buy should be largely governed
by the decision on getting exposure to that asset class
Exhibit 9: Sensex/Nifty ETFs receiving consistently higher inflows…
940
2830
4349
6748
930
3599
456 584
13651753
1513
19681675
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 10: …leading to consistent increase in AUM
23943
25211
28834
37412
40147
44436
45899
47584
48359
52823
53734
55166
60107
0
10000
20000
30000
40000
50000
60000
70000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
| C
rore
Other ETFs
Source: AMFI, ICICIdirect.com Research
Traded volumes should be the major criterion that is used
while deciding on investment in ETFs. Higher volumes
ensure lower spread and better pricing to investors...
Tracking error, though it should be considered, is not the
deciding factor as variation among funds is not huge...
..traded volume should be the major criteria to be
considered while deciding on investment in ETFs.
Higher volumes ensure lower spread and better
pricing to investors...
..tracking error though should be considered but is
not the deciding factors as variation among funds
is not huge...
ICICI Securities Ltd. | Retail MF Research
Page 10
Balanced funds
The balanced funds category continued to receive significant flows,
with the average monthly inflow (net) for 12 months to October 2017
amounting to ~ | 6200 crore
The AUM of balanced funds has witnessed a stellar increase during this
period, more than doubling to | 147460 crore in October 2017 from
| 61107 crore in the year ago period
Over the last two or three years, the balanced space has emerged as
one of the fastest growing equity categories and offers an ideal gateway
for first time retail equity investors. In FY17, balanced funds AUM
growth outpaced all other categories bar non-gold ETFs
Balanced funds are hybrid funds. More than 65% of the overall portfolio
is invested in equities. Hence, as per provisions of the Income Tax Act,
1961, any capital gains over a year become tax free. Also, dividends
declared by funds are tax free in the hands of the investor
In case one separately invests 35% of one’s investible corpus in a debt
fund, the same will be subject to higher taxation. However, if the whole
corpus is invested in balanced funds, 100% shall have lower taxation
applicable as mentioned above. Thus, balanced funds offer the benefit
of equity taxation on debt component
After a sharp rally in equity markets, the funds can be a preferred
investment avenue as the debt proportion serves to protect on
intermediate relief rallies or the downturn while providing minimum
65% participation on further upsides
Exhibit 11: Despite some moderation in the last 2 months, inflow into
balanced funds remain strong
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 12: YoY 141% growth in AUM of balanced funds
61107
62907
64954
71021
77126
84763
93530
102156
109513
121243
128320
134868
147460
13000
33000
53000
73000
93000
113000
133000
153000
173000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
| C
rore
Balanced
Source: AMFI, ICICIdirect.com Research
Preferred Picks
ICICI Prudential Balanced Fund
HDFC Balanced Fund
Birla Sun Life Balanced 95 Fund
DSP Blackrock Balanced Fund
L&T India Prudence Fund
(Refer to www.icicidirect.com for details of the fund)
Investors with a limited investible surplus and a lower risk
appetite but with a willingness to invest in equities can
look to invest in these funds
View
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 11
Monthly Income Plans (MIP)
An MIP offers investors the option to invest in debt with some
participation in equity, ~10-25% of the portfolio. They are suitable for
investors who seek higher returns from a debt portfolio and are
comfortable taking nominal risk. The debt corpus of the portfolio
provides regular income while the equity portion of the fund provides
alpha. However, returns can also get eroded by a fall in equities
MIPs can be classified into aggressive MIP and conservative MIP based
on its equity allocation. Risk averse investors should invest in MIPs with
lower equity allocation to avoid capital erosion
The change in taxation announced in the Union Budget 2014, shall be
applicable to MIP funds (refer debt funds section for details)
Preferred Picks
Aditya Birla Sun Life MIP II - Wealth 25 Plan
ICICI Prudential MIP 25
SBI Magnum MIP Fund
SBI Magnum MIP Floater Fund
(Refer www.icicidirect.com for details of the fund)
Arbitrage Funds
Arbitrage funds seek to exploit market inefficiencies that get manifested
as mispricing in the cash (stock) and derivative markets
Availability of arbitrage positions depends very much on the market
scenario. A directional movement in the broader index attracts
speculators in the market while cost of funding makes futures positions
biased
Arbitrage funds are classified as equity funds as they invest into equity
share and equity derivative instruments. Since these are classified as
equity funds for taxation, dividends declared by the funds are tax free.
No capital gains tax will be applicable if they are sold after a year
These funds can be looked upon as an alternative to liquid funds.
However, for these funds, returns totally depend on arbitrage
opportunities available at a particular point of time and investors should
consider reviewing the same before investing. Returns of arbitrage
funds are non-linear and, therefore, unsuitable for investors who want
consistent return across time period
Arbitrage funds should be used as a liquid investment and should not
be a major part of the investor’s portfolio. A range bound market does
not give ample room to create arbitrage positions
Preferred Picks
ICICI Prudential Equity - Arbitrage Fund – Regular
IDFC Arbitrage Fund - (Regular)
Kotak Equity Arbitrage Fund
SBI Arbitrage Opportunities Fund
(Refer to www.icicidirect.com for details of the fund)
View
Short-term: Neutral
Long-term: Positive
View
Short-term: Neutral
Long-term: Neutral
MIP should be a preferred debt investment for funds that
need to be parked for over two years
ICICI Securities Ltd. | Retail MF Research
Page 12
Debt funds
Exhibit 13: Category average returns
4.5
3.9
9.2
6.1
4.9
8.5
7.2
6.5
8.3
7.0
6.6
7.9
6.2
6.2 7
.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
6 months 1 year 3year
%
Gilt Funds Income LT Income ST Income UST Liquid
Source: ACE MF, ICICIdirect.com Research
Note : Returns as on November 15, 2017; All returns are compounded annualised
Exhibit 14: G-sec yield curve
6.14
6.41
6.67
6.74
6.20
6.59
6.887.05
6.0
6.2
6.4
6.6
6.8
7.0
7.2
1yr 3yr 5yr 10yr
Yie
ld (%
)
14-Nov-17 13-Oct-17
Source: Bloomberg, ICICIdirect.com Research
Exhibit 15: Corporate bond curve
6.88
7.19 7.09
7.67
6.99
7.30 7.33
7.90
6.4
6.8
7.2
7.6
8.0
1yr 3yr 5yr 10 yr
Yie
ld (%
)
14-Nov-17 13-Oct-17
Source: Bloomberg, ICICIdirect.com Research
Benchmark 10 year G-Sec has witnessed yields
softening by ~20 bps since the end of April
Interest rates moved up on the longer end of the G-Sec and
corporate bond category
ICICI Securities Ltd. | Retail MF Research
Page 13
Liquid Funds
Yields on money market instruments viz. less than one year CDs and
CPs in which liquid fund predominantly invest, remain stable at lower
levels due to ample liquidity
In an uncertain environment, liquid funds remain well placed to park
money with low volatility
For less than a year, individuals in the higher tax bracket should opt for
dividend option as the dividend distribution tax @ 28.325% is
marginally lower. Also, though the tax arbitrage has reduced, they still
earn better pre-tax returns over bank savings (3-4%) and current
accounts (0-3%)
Changes in taxation rules announced in Union Budget 2014 are also
applicable to liquid funds, as post tax returns in less than a three-year
period get reduced for individuals in the higher tax bracket (30% tax
slab) and for corporate
Exhibit 16: Call rates below repo rate
5
5.4
5.8
6.2
6.6
7
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
%
Call rate
Source: Bloomberg, ICICIdirect.com Research
Exhibit 17: CP/CD yields
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
%3M CD 3M CP
Source: Bloomberg, ICICIdirect.com Research
Exhibit 18: Flows into liquid funds remain volatile on institutional activity
-34,813
1,350
26,943
10,541
8,227
-15,147
99,403
-64,692 -12,739
-19,511
21,352
4,833
-13,261
-200,000
-160,000
-120,000
-80,000
-40,000
0
40,000
80,000
120,000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 19: AUM remains healthy
402671
405662
384350
354642
386403
399775
415087
428212
450533
467418
468022
484802
468668
300000
400000
500000
600000
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
| la
kh C
rore
Money Market
Source: AMFI, ICICIdirect.com Research
Preferred Picks
HDFC Cash Management Fund - Savings Plan
SBI Magnum InstaCash
Reliance Liquid Fund - Treasury Plan
(Refer to www.icicidirect.com for details of the fund)
View
Neutral
ICICI Securities Ltd. | Retail MF Research
Page 14
Income funds
A two year high in crude oil prices, higher inflation data, large quantum
of bond sales by RBI, uncertainty surrounding the nature of bank
recapitalisation bonds and fears of fiscal slippage helped drive
benchmark 10 year G-Sec yield above the 7% mark for the first time in
14 months in early November. October’s pick up in CPI inflation to a
seven month high of 3.58% followed consecutively higher inflation
readings in July (2.36% YoY) and August (3.28% YoY) than the series-
low June headline CPI print of 1.54%. The October MPC policy
document outlined aspects such as rebound in core & fuel inflation and
the possibility of fiscal slippages as some factors influencing its decision
to maintain status quo on rates. Food prices rose in October on the
back of spike in vegetables and milk while the percolation effects of
HRA implementation for government employees and crude-led spurts
in the fuel basket were also apparent. Core inflation remained sticky.
Further, persistent stickiness could lead the RBI to maintain a prolonged
pause on rates. The RBI revised upwards its inflation projection for
H2FY18 to 4.2-4.6% from 3.5-4.5%
Dynamic bond funds or short-term funds with some dynamic allocation
to G-Sec should be preferred over pure G-Sec funds or long-term
duration funds
Short-term debt funds remain a stable performing category, especially
in the current volatile environment. Credit funds with reasonable credit
quality should be preferred over an aggressive credit fund
Exhibit 20: Income funds see significant inflow in October
52,1
25
18,3
06
-33,1
82
28,5
88
10,8
64
-56,2
47
34,6
47
5,1
24
-20,6
85
60,0
84
8,3
90
-50,0
90
40,8
45
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
60,000
80,000
Oct-
16
Dec-1
6
Feb-1
7
Apr-
17
Jun-1
7
Aug-1
7
Oct-
17
Net In
flow
s
(| .
Cr)
Source: AMFI, ICICIdirect.com Research
Exhibit 21: AUM remains stable on consistent inflows
698418
754662
784305
748071
783778
794679
743783
780797
792734
778266
845484
858188
809965
400000
500000
600000
700000
800000
900000
Oct-
16
Nov-1
6
Dec-1
6
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
| C
rore
Income
Source: AMFI, ICICIdirect.com Research
Recommended funds
Ultra Short Term Funds
Birla Sun Life Savings Fund
ICICI Prudential Flexible income
Short Term Funds
Birla Sunlife short term fund
HDFC Short Term Fund
ICICI Pru Short Term Plan
Short Term Funds – Credit opportunities
Axis Regular Savings Fund
Aditya Birla Sunlife Medium Term Plan
L&T Short Term Fund
Long term/Dynamic
Birla Sunlife income plus
ICICI Prudential Dynamic Bond Fund
IDFC dynamic bond fund
(Refer www.icicidirect.com for details of the fund)
View
Ultra-short term: Neutral
Short-term: Positive
Long-term: Neutral
ICICI Securities Ltd. | Retail MF Research
Page 15
Gilt Funds
Yield on the benchmark 10 year government bond hardened
appreciably in late October and early November owing to a variety of
reasons. Softer than expected inflation prints in April, May and June
combined with strong institutional flows into debt markets combined to
push down benchmark 10 year G-sec yield by ~45-50 points in the
period from May-July. The markets were not enthused by the widely
expected rate cut in August and the lower-than-expected dovish RBI
commenatry in October. A significant rebound in July-October CPI
readings was followed by a rise in yields by ~25 bps from ~6.50%
(end-June) to 7.02% (November 15). The yield is up ~52 bps YTD. It
previously briefly briefly tested the 7%% in April without breaching it
RBI held status quo on policy rates and maintained neutral stance in its
October 4 policy meet. October’s pick-up in CPI inflation to a seven
month high of 3.58% followed consecutively higher inflation readings in
July (2.36% YoY) and August (3.28% YoY). The October MPC policy
document outlined aspects such as rebound in core & fuel inflation and
the possibility of fiscal slippages as some factors influencing its decision
to maintain status quo on rates. Food prices rose in October on the
back of spike in vegetables and milk while the percolation effects of
HRA implementation for government employees and crude-led spurts
in the fuel basket were also apparent. Core inflation rose remained
sticky. Further persistent stickiness could lead the RBI to maintain a
prolonged pause on rates. The RBI revised upwards its inflation
projection for H2FY18 to 4.2-4.6% from 3.5-4.5%
Given how inflation seems to be edging higher post June driven by
higher fuel prices, GST, HRA implementation, unfavourable base effect
in vegetable prices, and increasing likelihood of a third 2017 rate hike by
the Fed in December, there appears quite limited scope for yields to
soften. Allocation to pure G-Sec or duration funds should be avoided
given their historical outperformance and G-sec yield trading at the
lower end of its historical range. Historically, it has been observed that
years of good returns in G-sec are followed by lower returns
Exhibit 22: Historical trend in return from G-Sec indicates, going forward, returns likely to be lower
-15
-10
-5
0
5
10
15
20
25
30
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017 YTD
Crisil 10 Yr Gilt Index
%
Source: ACE MF
Preferred Picks
Aditya Birla Sun Life Gilt Plus – PF Plan
ICICI Pru LT Gilt Fund – PF Option
(Refer to www.icicidirect.com for details of the fund)
Allocation to pure G-Sec or duration funds should be
avoided given their historical outperformance and G-sec
yield trading at the lower end of its historical range. Crisil
10 year Gilt index has delivered 38% return in the last
three years. It is likely the return will be significantly
lower, going forward
View
Short-term: Neutral
Long-term: Neutral
ICICI Securities Ltd. | Retail MF Research
Page 16
Gold: Outlook anchored to Fed movement
Global prices were rangebound in October. Starting from a base of
~US$1271 per ounce, prices gained smartly towards ~US$1304 per
ounce (October 13) before a sharp decline, ending the month with no
price gains. The metal has remained within a narrow range thereafter in
the first two weeks of November (~US$1271 per ounce on November
15). This represents a ~3.0% YTD return
Rupee depreciation over late October-early November has helped
deliver better price gains in Indian gold prices compared to global
prices for the first time in 2017. Domestic rise amounted to ~6.2% YTD
as of November 15
De-escalation of geopolitical tensions after early September have led to
cooling off of investment demand in gold. Earlier, the safe haven status
of the yellow metal had sparked buying interest as concerns
surrounding North Korea escalated in August. With all quiet on this
front, gold direction would continue to draw upon expectations for the
US Fed’s interest rate trajectory
There are strong expectations surrounding a Fed rate hike in December.
The Fed had last hiked rates twice thus far in 2017. Persistent
undershooting of inflation prints from the targeted level could impact
this stated trajectory. The US Fed meeting is scheduled to take place on
December 13.
Fresh strength in gold prices till mid October was caused by weaker
than expected US inflation data, which cast some doubts on the Fed’s
interest hike trajectory. Further, geoplotical worries from Iraq also lent
support during this time.
US bond yields hardened in the latter half of October towards the 2.4%
mark. Higher yield on bonds could impact demand for gold, which is a
non interest bearing investment. Additionally, the US Dollar Index
rallied to three month highs in October, impacting prices of the dollar
denominated yellow metal
Gold has historically been looked at as a relatively risk-free asset. Its
price movement both in India and globally, is impacted by any actual or
perceived risk build-up on economic, political or natural fronts
Exhibit 23: Gold prices range bound in October
1100
1200
1300
1400
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Price ($/ounce)
Source: Bloomberg, ICICIdirect.com Research
Exhibit 24: Indian price rise outpaces global gold price rise on YTD basis
26000
28000
30000
32000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Price (|/10 grams)
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 17
Model Portfolios
Equity funds model portfolio
Investors who are wary of investing directly into equities can still get
returns almost as good as equity markets through the mutual fund route.
We have designed three mutual fund model portfolios, namely,
conservative, moderate and aggressive mutual fund portfolios. These
portfolios have been designed keeping in mind various key parameters like
investment horizon, investment objective, scheme ratings, and fund
management.
Exhibit 25: Equity model portfolio
Particulars Aggressive Moderate Conservative
Review Interval Monthly Monthly Quarterly
Risk Return High Risk- High
Return
Medium Risk -
Medium Return
Low Risk - Low
Return
Funds Allocation % Allocation
Franklin India Prima Plus 20 20 20
Birla Sunlife Frontline Equity - 20 20
ICICI Prudential Dynamic Plan - - 20
SBI Bluechip Fund 20 20 20
Kotak Select Focus Fund 20 20 -
HDFC Midcap Opportunities 20 10 -
Franklin India High Growth Companies Fund 20 - -
Birla SL Dynamic Bond Fund - 10 20
Total 100 100 100
Source: ICICIdirect.com Research
Exhibit 26: Model portfolio performance: One year performance (as on October 31, 2017)
18.7%
15.9%15.5%
21.6%
10%
12%
14%
16%
18%
20%
22%
Aggressive Moderate Conservative BSE 100
%
Aggressive Moderate Conservative BSE 100
Source: Crisil Fund Analyser, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 18
Debt funds model portfolio
We have designed three different mutual fund model portfolios for different
investment duration viz. less than six months, six months to one year and
above one year. These portfolios have been designed keeping in mind
various key parameters like investment horizon, interest rate scenarios,
credit quality of the portfolio and fund management, etc.
Exhibit 27: Debt funds model portfolio
Particulars
0 – 6 months 6months - 1 Year Above 1 Year
Objective Liquidity
Liquidity with
moderate return Above FD
Review Interval Monthly Monthly Quarterly
Risk Return
Very Low Risk -
Nominal Return
Medium Risk -
Medium Return
Low Risk - High
Return
Funds Allocation
Ultra Short term Funds
Birla SL Savings Fund 20
ICICI Pru Flexible Income Plan 20
Short Term Debt Funds
Axis Regular Savings Fund 20
Birla Sunlife Short Term Fund 20 20
Birla Sunlife Short Term Opportunites Fund 20 20
Reliance Regular Savings Fund 20
HDFC Short Term Opportunities Fund 20 20
ICICI Prudential Regular Savings 20
ICICI Prudential Short Term Fund 20
IDFC SSI Short Term 20
UTI Short Term Income Fund 20
HDFC Corporate Debt opportunities fund 20
Total 100 100 100
Time Horizon
% Allocation
Source: ICICIdirect.com Research
Exhibit 32: Model portfolio performance: One year performance (as on October 31, 2017)
7.40
7.90
7.70
7.10
7.50
7.10
6.6
6.8
7.0
7.2
7.4
7.6
7.8
8.0
0-6 Months 6Months - 1Year Above 1yr
%
Portfolio Index
Source: Crisil Fund Analyser, ICICIdirect.com Research
*Index: 0-6 month’s portfolio – Crisil Liquid Fund Index; 6 months-1 year – Blended Index with 50% weight to Crisil
Liquid Index, 50% weight to Crisil Short Term Index; Above 1 year: Crisil Short Term Index
ICICI Securities Ltd. | Retail MF Research
Page 19
Top Picks
Exhibit 33: Category wise top picks
Largecaps Birla Sun life Frontline Equity Fund
ICICI Pru Focused Bluechip Fund
SBI Bluechip Fund
Midcaps HDFC Midcap Opportunities Fund
Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund
Multicaps Franklin India Prima Plus Fund
Kotak Select Focus Fund
Motilal Oswal MOSt Focussed Multicap 35 Fund
ELSS Axis Long Term Equity Fund
Reliance Tax Saver Fund
Franklin India Taxshield
Balanced HDFC Balanced Fund
ICICI Pru Balanced Fund
Birla Sun Life Balanced 95 Fund
DSP Blackrock Balanced Fund
L&T India Prudence Fund
Liquid HDFC Cash Mgmnt Saving Plan
ICICI Pru Liquid Plan
Reliance Liquid Treasury Plan
Ultra Short term Birla Sunlife Savings Fund
ICICI Pru Flexible Income Plan
UTI Treasury Advantage Fund-Inst
Short term Birla SL Short term Fund
HDFC Medium Term opportunities Fund
Kotak Banking and PSU Debt Fund
Credit Opportunities Axis Regular Savings Fund
Birla Sun Life Medium Term Plan
L&T Short Term Income Fund
Income Funds ICICI Pru Income Fund
Birla SL Income Plus - Regular Plan
Equity Funds & Equity-oriented Funds
Debt Funds
(Refer www.icicidirect.com for details of the fund)
ICICI Securities Ltd. | Retail MF Research
Page 20
Pankaj Pandey Head – Research [email protected]
ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st
Floor, Akruti Trade Centre,
Road No. 7, MIDC,
Andheri (East)
Mumbai – 400 093
Disclaimer
ANALYST CERTIFICATION
We, Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect
our views about the subject issuer(s) or Funds. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
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ICICI Securities Limited (ICICI Securities) AMFI Regn. No.: ARN-0845. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990.Registered office of I-
Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate,Mumbai - 400020, India. ICICI Securities is a full-service, integrated investment banking and is, inter alia, engaged in the
business of stock broking and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries
engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, distribution of financial products etc. (“associates”), the details in
respect of which are available on www.icicibank.com.
ICICI Securities is one of the leading distributors of Mutual Funds and participate in distribution of Mutual Fund Schemes of almost all AMCs in India.
The selection of the Mutual Funds for the purpose of including in the indicative portfolio does not in any way constitute any recommendation by ICICI Securities Limited (hereinafter referred to as ICICI
Securities) with respect to the prospects or performance of these Mutual Funds. The investor has the discretion to buy all or any of the Mutual Fund units forming part of any of the indicative portfolios
on icicidirect.com. Before placing an order to buy the funds forming part of the indicative portfolio, the investor has the discretion to deselect any of the units, which he does not wish to buy. Nothing in
the indicative portfolio constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific circumstances.
The details included in the indicative portfolio are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its
accuracy or completeness guaranteed. The funds included in the indicative portfolio may not be suitable for all investors, who must make their own investment decisions, based on their own
investment objectives, financial positions and needs.
This may not be taken in substitution for the exercise of independent judgement by any investor. The investor should independently evaluate the investment risks. ICICI Securities and affiliates accept
no liabilities for any loss or damage of any kind arising out of the use of this indicative portfolio.
Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. ICICI Securities may be holding all or any of the units included
in the indicative portfolio from time to time as part of our treasury management. ICICI Securities Limited is not providing the service of Portfolio Management Services (Discretionary or Non
Discretionary) to its clients.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Kindly note that such research recommended funds in indicative portfolio are not based on individual risk profile of each customer unless a customer has opted for a paid Investment Advisory Service
offered by I-Sec.
Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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ICICI Securities and/or its associates receive compensation/ commission for distribution of Mutual Funds from various Asset Management Companies (AMCs). ICICI Securities host the details of the
commission rates earned by ICICI Securities from Mutual Fund houses on our website www.icicidirect.com. Hence, ICICI Securities or its associates may have received compensation from AMCs
whose funds are mentioned in the report during the period preceding twelve months from the date of this report for distribution of Mutual Funds or for providing marketing advertising support to these
AMCs. ICICI Securities also provides stock broking services to institutional clients including AMCs. Hence, ICICI Securities may have received brokerage for security transactions done by any of the
above AMCs during the period preceding twelve months from the date of this report.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive
any compensation or other benefits from the AMCs whose funds are mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities
nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.
It is confirmed that Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts of this report have not received any compensation from the Mutual Funds house whose funds are mentioned in the report
in the preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or is associates may be holding all or any of the units included in the indicative portfolio from time to time as part of our treasury management. Hence, ICICI Securities or its associates
may own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the research report.
Research Analysts or their relatives of this report do not own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the
research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies/ AMCs including the AMCs
whose funds are mentioned in this report or may have invested in the funds mentioned in this report .
ICICI Securities also distributes Mutual Fund Schemes of ICICI Prudential Asset Management Company which is an ICICI Group Company, scheme details of which might also be appearing in the report
above. However, the transactions are executed at Client's sole discretion and Clients make their own investment decisions, based on their own investment objectives, financial positions and needs..
It is confirmed that Sachin Jain, Research Analysts do not serve as an officer, director or employee of the AMCs whose funds mentioned in the report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies/funds mentioned in the report.
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This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such
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described herein may or may not be eligible for subscription in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform
themselves of and to observe such restriction.