Mutual FundReview
October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund
Mutual Fund Review April 20, 2018
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 ............................................................................................ 8
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 and Gilt funds ............................................................................. 14
Gold: Outlook anchored to Fed movement ....................................................... 15
Model Portfolios ................................................................................................ 16
Equity funds model portfolio ......................................................................... 16
Debt funds model portfolio ............................................................................ 17
Top Picks ........................................................................................................... 18
April 20, 2018
ICICI Securities Ltd. | Retail MF Research
Page 2
Equity Markets
Update
Indian equity markets have been extremely volatile since the start of
2018. After making new highs in January 2018, markets corrected
sharply by around 10% in February and March. However, the market
again rebounded sharply in April making good for most losses
Structurally, markets are witnessing a healthy consolidation with buying
demand emerging at lower levels. With the Q4 earnings season set to
start, the focus will now shift to stock specific action amid ongoing
consolidation in the broader range of 10000-10500. Any correction from
current levels to the 10000-10100 region should be used as an
incremental buying opportunity
Over the last couple of quarters, various lead indicators have been
pointing towards fundamentals gaining traction. This is expected to
translate to a strong earnings trajectory from FY19E onwards. The same
is reiterated by the growth rate (FY18) of core sectors like auto (14.5%
YoY), cement (up 5.7% YoY), steel (~6% YoY) and power (5.2% YoY),
amid the impact of GST from Q1FY18. In turn, this is all pointing
towards a sharp up-tick in ensuing economic activity. Similarly,
tendering activity across key infrastructure segments like roads (up
23%), railways (up 13.1%), real estate (96.1%) and irrigation (55% YoY)
have started resulting in strong ordering trends. In our view, this has
gradually kick started the capex cycle. This, in turn, is expected to have
a multiplier effect on growth of core sectors and GDP growth
Inflows into domestic mutual funds continue to remain strong with
inflows through SIP amount during March 2018 crossing | 7100 crore. A
sustained increase in SIP inflows is a structural positive in terms of
flows into equity markets
Outlook
The earnings trend of the banking sector, marred by higher
provisioning, has kept the earnings trajectory volatile and unfathomable
in the short-term. However, current developments in NCLT resolutions
have been quite encouraging as a good number of cases have seen
substantial interest from potential suitors for the assets of these
companies. This may lead to lower-than-expected haircuts and a
resultant reversal of provisions. The recent bond yield correction and
spreading of bond portfolio losses over the next four quarters will
provide some cushion to banking sector earnings. In our view, we may
revert to a normalised earnings trajectory for banks in H2FY19. This, in
turn, will help earnings register CAGR of 21% in FY18E-21E
In the past, Sensex earnings have looked suppressed mainly due to
higher provisioning by banks, which impacted their profitability. Thus,
over the last two years, Sensex earnings (ex-banking) have been up
9.6% YoY, nearly ~2x that of Sensex earnings (including banks - that
account for ~40% of weights and is dragging overall profitability)
Going forward, we expect the index to enter a base formation phase as
the price wise correction is approaching maturity. Therefore, we believe
any sharp correction is a good opportunity for investors with a long
term horizon to start building a portfolio of quality stocks to ride the
next phase of the larger uptrend
Nifty 50: Markets recover after dip
7500
8000
8500
9000
9500
10000
10500
11000
11500
12000
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
Source: Bloomberg, ICICIdirect.com Research
Secular bounce back across indices …
3.8
3.7
3.6
3.6
3.5
3.2
-2
0
2
4
6
BS
E 2
00
Sensex
BS
E 1
00
BS
E 5
00
BS
E M
idcap
BS
E S
mall cap
Source: Bloomberg
One month returns till April 17, 2018
Real estate and Oil & Gas in the red …
5 5
4
3
3
2
2
-1
-2
-4
-2
0
2
4
6
FM
CG
Auto
CG
Bankin
g IT
Healthcare
Metals
Real Estate
Oil n G
as
Source: Bloomberg
One month returns till April 17, 2018
Research Analyst
Sachin Jain
Jaimin Desai
ICICI Securities Ltd. | Retail MF Research Page 3
Debt Markets
Update
The fixed income market has been extremely volatile over six months
with yields under pressure on concerns arising from rising inflation, fear
of fiscal slippage, rising global crude oil prices and higher global bond
yields. A lower H1FY19 borrowing calendar and lower-than-expected
hawkishness by the RBI in its monetary policy meeting led to some
relief. However, the rally was short-lived as higher state government
borrowing, further oil price rise dampened sentiments again
The 10-year benchmark G-Sec yield, after having declined around 50
bps from 7.62% to 7.15%, again rose back to around 7.5% levels
The government has announced a reduction in the gross borrowing
programme announced in the Budget for | 6,06,000 crore by a | 50,000
crore by reducing the intended buyback by | 25,000 crore and relying
on small savings for an additional | 25,000 crore. Further, the
government announced it would borrow only 52% in the first half
against 60-65% that it normally borrows. Also, supply in the 10-14 years
bucket has been cut to less than 30% of the auction. Instead, the
longest end has been slightly increased whereas a new bucket for one
to four years has been created for around 8% of the auction
In its monetary policy meeting, while the RBI maintained status quo, the
lowering of inflation forecast cheered market participants with
expectation of rate hike in the near term being rules out. Inflation
projection to 4.4-4.7% in H1FY19 and 4.4% in H2FY19, which is just
slightly above its medium term target of 4%. The RBI seems to be
focusing on durable inflation target by looking through impact of one-
off events such as HRA and GST implementation. If realised, the lower
inflation trajectory would allow the RBI to maintain a less hawkish
stance. This would, in turn, comfort the markets
However, RBI cited upside risks to inflation noting factors like revised
formula for MSP, impact of HRA revision by state governments, further
deviation from revised fiscal consolidation path & volatile crude prices
Outlook
We do not expect a reversal in the interest rate cycle, going ahead. We
expect RBI to keep repo rates unchanged at 6%, at least in near term
A higher supply of government securities, particularly from state
governments, along with a further rise in crude oil prices, is a cause for
concern in the near term. However, expectation of normal monsoon
and lower global bond yields may provide support
Historically, 10-year G-Sec yield spread over repo ranges between 50
bps and 150 bps for most of the period. We believe the current spread
of 250 bps will narrow down once negative sentiments fades. Corporate
bond spreads are also likely to be at historic low levels as investors
search for higher accrual in a stable interest rate environment
Corporate bond yields over the last six months have been far more
stable than G-Sec yield. The yield curve, after the recent fall, has
become flattish making the shorter end of the yield more attractive both
in the G-Sec as well as corporate bond segment. Short-term debt funds
remain better placed due to lower volatility and higher bond spread
Short-term accrual debt funds with mix of AAA/AA/A rated papers and
low expense ratio continue to offer a better investment option
G-sec yields dip slightly back towards 7.50%
6.0
6.4
6.8
7.2
7.6
8.0
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Yie
ld (%
)
Source: Bloomberg
G-sec yield curve: Yields dip for longer maturities
6.50
7.16
7.40
7.44
6.63
7.21
7.53 7.66
6.0
6.2
6.4
6.6
6.8
7.0
7.2
7.4
7.6
7.8
1 2 3 4
Yie
ld (%
)
Series1 Series2
Source: Bloomberg, ICICIdirect.com Research
AAA corporate bond yield curve flattens for longer
durations
7.647.78
7.83
8.06
7.78
7.97
8.088.40
6.4
6.8
7.2
7.6
8.0
8.4
8.8
1yr 3yr 5yr 10 yr
Yie
ld (%
)
13-Apr-18 13-Mar-18
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 4
MF industry synopsis
MF industry AUM declined marginally by ~3.8% in March 2018 to
~| 21.3 lakh crore. Total ~37% was held by income funds, ~46% by
equity and equity-oriented funds and ~16% by money market funds
According to Amfi data, systematic investment plans (SIPs) inflows for
March were at a record high of ~| 7100 crore, up from ~| 6400 crore in
the previous month. SIP inflows average ~| 5600 crore per month in
FY18 against ~| 3600 crore per month in FY17, a rise of ~52%. The
number of SIP folios has increased from 1.35 crore in March 2017 to
2.11 crore in March 2018
In 2017, the MF industry recorded net inflow of | 2.44 lakh crore, of
which | 2.42 lakh crore came into equity and equity-oriented funds
Till March 2018, inflows into equity and equity oriented flows in FY18
were averaging ~| 21000 crore per month, more than double that in
FY17. March saw a net inflow of ~| 16000 crore in such funds
Exhibit 1: Monthly inflows into equity-oriented funds average ~| 21500
crore in FY18
1000000
1200000
1400000
1600000
1800000
2000000
2200000
2400000
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan-1
8
Feb-1
8
Mar-
18
Total AUM
Source: AMFI
Exhibit 2: AUM of Top 10 AMCs
293,078
292,225
230,414
228,212
206,973
138,756
116,111
100,309
82,395
66,996
50000
100000
150000
200000
250000
300000
350000
400000
ICICI
HD
FC
Aditya
Birla
Reliance
SB
I
UTI
Kotak
Franklin
DS
PB
R
Axis
AUM
Source: ACE MF
Exhibit 3: SBI has highest proportion of equity AUM as percentage of its
AUM
51%
48%
45%
44%
43%
40%
39%
36%
34%
33%
0%
20%
40%
60%
80%
SB
I
Fra
nklin
DS
PB
R
Axis
HD
FC
UTI
ICIC
I
Reliance
Kota
k
Adit
ya B
irla
Equity % Debt% Others%
Source: ACE MF. Data as of March 2018
Exhibit 4: Equity funds witness significant inflows in FY18…
-2000
4000
10000
16000
22000
28000
34000
40000
46000
52000
58000
64000
EQ
UIT
Y
BA
LA
NCED
OTH
ER
ETFs
ELS
S - E
QU
ITY
GO
LD
ETFs
GIL
T
Source: ACE MF. Data as on January 2018
ICICI Securities Ltd. | Retail MF Research
Page 5
MF Category Analysis
Equity funds
Technology funds remained the best performing category of sector
funds. This category along with FMCG, infrastructure as well as
banking funds continued to outperform pharma funds by wide
margins. IT funds have staged a comeback over the last six months
but pharma funds dragged once again, returning -5.4% on a one-
year basis
In terms of market cap-based funds, midcap funds continued their
dominance over large cap funds. Overall, midcap funds were
among best performing equity fund categories on a one-year basis
Structural industrywide problems continue to plague pharma funds.
Pharma stocks are under pressure due to erosion of pricing power
in the US, which is one of the largest markets for most Indian
companies. The growth trajectory for US-focused companies has
shifted lower, resulting in lower valuation multiples than those
commanded previously
Exhibit 5: IT funds continue to outperform other categories on one year basis while pharma funds
continue to be under pressure (returns as on April 17, 2018)
S
36.0
25.9
17.3
14.4
13.9
13.5
9.4
-5.4
8.1
14.0
14.4
10.7
8.5 10.9
9.9
-3.1
19.9
17.7
27.6
19.5
16.1
19.0
13.7
14.0
-10
-5
0
5
10
15
20
25
30
35
40
Technology FMCG Mid cap Multi cap Large Cap Infrastructure Banking 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, ELSS schemes
0
4000
8000
12000
16000
20000
24000
28000
32000
36000
40000
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Net Inflo
w ( | C
r )
Equity + ELSS + ETF
Source: Amfi, ICICIdirect.com Research
Exhibit 7: Robust inflow in equity funds push up AUM
350000
400000
450000
500000
550000
600000
650000
700000
750000
800000
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan-1
8
Feb-1
8
Mar-
18
| 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 in the last three
years, with AUM within each sub-category rising substantially. In
the last three years in FY14-17, AUM of large cap funds rose 114%,
multi cap funds AUM rose 91% while midcap funds AUM rose
135%
Over this period, while all three sub-categories 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 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 segments and are,
therefore, relatively better placed
Exhibit 8: Blistering AUM growth across all equity diversified fund sub-categories from 2014
35878
40268
66085
75637
103155
141430
64189
69009 1
19829
127071
173056 228617
18988
21377
53340
59369
92584
125541
0
30000
60000
90000
120000
150000
180000
210000
240000
270000
300000
Mar 13
Mar 14
Mar 15
Mar 16
Mar 17
Mar 18
|crs
Large Caps Multi Caps Mid Caps
Source: ACE MF
Recommended funds
Large cap
Aditya Birla Sunlife Frontline Equity
ICICI Prudential Focused Bluechip Equity
SBI Bluechip Fund
Multi cap
L&T India Value 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
Rollout of e-way bill from April, 2018 and revival in affordable housing
segment bodes well for the building material sector for a revival in the
demand environment in FY19E. GST rollout coupled with e-way bill
implementation would enable faster movement from unorganised to
organised players as the latter would now come under the tax ambit
Q4FY18E has been a strong quarter with regard to order wins for capital
goods EPC space. Awarding has happened across all key segments like
roads, power T&D, railways, irrigation and hydrocarbons. There were
few orders in power generation equipment segment
Cement demand has been witnessing a gradual improvement mainly
led by increased government spending in infrastructure activities. This
is supported by the fact that project tendering has increased 29.5% YoY
to | 2.2 lakh crore in January-February 2018 vs. 8.6% YoY last year.
Within overall project tendering, road tendering has seen a strong pick-
up, growing at 62% YoY to 1.4 lakh crore in January-February 2018.
Further, better sand availability in Uttar Pradesh, Bihar and Tamil Nadu,
pick-up in infra projects in Maharashtra, Andhra Pradesh & Telangana
and improved demand in low cost housing are expected to be key
catalysts for cement demand
Infrastructure funds focusing on specific companies capitalising on
growth potential in the sector are offering a good investment option to
investors. Aggressive investors may consider investing in the
recommended infrastructure funds as a part of their thematic allocation
Preferred Picks
L&T Infrastructure Fund Refer www.icicidirect.com
for details of the fund Reliance Diversified Power Sector Fund
Equity banking funds
Q4FY18 has been an eventful quarter for the banking sector, which saw
it being inflicted with further NPA pain and higher provisioning cost.
These events include ~| 14500 crore letter of undertaking (LoU) fraud
relating to the gems & jewellery sector, new NPA framework introduced
by RBI (discarding past restructuring formats) and a large telecom
account (~| 25000 crore exposure of Indian banks) slipping into NPA
owing to failure of its SDR before quarter end. Further, absence of any
resolution in large NCLT cases referred earlier (especially in steel
accounts) has also escalated provisioning pressure in Q4FY18
However, in the long term, 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 are expected to further aid
profitability. From a long term point of view, the PSU bank
recapitalisation programme is a structural positive. The continued
government push on financial inclusion, 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
www.icicidirect.com for
details of the fund
Reliance Banking Fund
UTI Banking Sector Fund
View
Short-term: Positive
Long-term: Positive
View
Short-term: Neutral
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research Page 8
Equity FMCG Funds
The FMCG space saw various headwinds in 9MFY18 such as absence of
price hike due to GST implementation difficulties, which disrupted trade
channels, particularly the wholesale channel. FMCG companies are
expected to witness muted sales growth as a result of having passed on
GST rate cuts. However, a demand revival is expected to be driven by
normalcy in trade channels & demand recovery in rural regions
considering expected normal monsoon in 2018
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
Equity Pharma funds
For Q4FY18 results, select US focused companies are expected to
post subdued performance due to adverse currency movement,
lack of meaningful launches and pricing pressure on base business.
Domestic companies are expected to be on track post GST
implementation. Strong growth in branded market (India, Russia,
Latin America, etc) is likely to mitigate the US base business decline
We have a neutral view on the sector. The US front continues to
face intense competition owing to client consolidation and faster
approval of products. Revenues, margins and profitability could
remain subdued in the near to medium term leading to a cautious
undercurrent for the sector
Preferred Picks
Reliance Pharma Fund Refer to
www.icicidirect.com
for details of the fund
SBI Pharma Fund
UTI-Pharma & Healthcare
Equity Technology Funds
In Q4FY18, IT companies are expected to report mild dollar revenue
growth QoQ supported by cross currency tailwinds. Dollar revenue
growth is expected to be healthier for midcap companies against
tier I companies due to a better deal pipeline and increasing
contribution from the digital space. FY19 management guidance for
these companies would be a key monitorable
We maintain our neutral stance on the sector as the industry faces
challenges related to US immigration rules and growing
protectionism around the world. 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
Preferred Picks
ICICI Prudential FMCG Fund Referwww.icicidirect.com
for details of the fund SBI FMCG Fund
View
Short-term: Neutral
Long-term: Neutral
View
Short-term: Neutral
Long-term: Neutral
View
Short-term: Positive
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, 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: ETFs record inflows in February after two months of outflows
456 5841365 1753 1513
1968 1675
12447
-1604-2234
953
5082
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Net Inflo
w ( | C
r )
Source: Amfi, ICICIdirect.com Research
Exhibit 10: ETF AUMs remain strong
44436
45899
47584
48359
52823
53734
55166
60107
70041
70353
72879
69848
72888
0
10000
20000
30000
40000
50000
60000
70000
80000
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
| 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 average net monthly inflow in 2017 of ~ | 7000 crore
AUM of balanced funds witnessed a stellar increase during this
period, more than doubling to | 172151 crore in March 2018 from
| 84763 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 are taxed at
10%. Also, dividends declared by funds are taxed at 10%
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: Inflows into balanced funds rebound from February dip
7,1367,6637,458
7,864
8,783
8,141
5,897
7,614
9,756
7,665
5,026
6,754
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Net Inflo
w ( | C
r )
Source: Amfi, ICICIdirect.com Research
Exhibit 12: YoY 104% growth in AUM of balanced funds 84763
93530
102156
109513
121243
128320
134868
147460
155105
167385
176087
174468
172151
13000
33000
53000
73000
93000
113000
133000
153000
173000
193000
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
| 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 taxed at 10%. Capital gains tax will be applicable at 10% 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
5.9 6
.6
7.5
6.4
6.4 7.0
4.7
6.3
7.6
1.7
4.8
7.1
-0.8
3.4
7.2
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
6 months 1 year 3year
%Income Ultra Short Term Liquid Income Short Term Income Long Term Gilt
Source: Crisil, ICICIdirect.com Research
Note : Returns as on April 17, 2018; All returns are compounded annualised
Exhibit 14: G-sec yield curve
6.50
7.16
7.40
7.44
6.63
7.21
7.53 7.66
6.0
6.2
6.4
6.6
6.8
7.0
7.2
7.4
7.6
7.8
1 2 3 4
Yie
ld (%
)
Series1 Series2
Source: Bloomberg, ICICIdirect.com Research
Exhibit 15: Corporate bond curve
7.647.78
7.83
8.06
7.78
7.97
8.088.40
6.4
6.8
7.2
7.6
8.0
8.4
8.8
1yr 3yr 5yr 10 yr
Yie
ld (%
)13-Apr-18 13-Mar-18
Source: Bloomberg, ICICIdirect.com Research
Benchmark 10 year G-Sec has witnessed yields
coming off its highs in March
Interest rates flattened sharply for longer durations across
G-Sec and corporate bond categories
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, have spiked
over the last three months in the face of reducing 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)
Exhibit 16: Call rates below repo rate
5.6
5.8
6
6.2
6.4
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
%
Call rate
Source: Bloomberg, ICICIdirect.com Research
Exhibit 17: Short term CP/CD yields
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
%
3M CD 3M CP
Source: Bloomberg, ICICIdirect.com Research
Exhibit 18: Flows into liquid funds remain volatile on institutional activity
99,403
-64,692
-12,739
-19,511
21,352
4,833
-13,261
77,408
-127,597
96,552
1,223
-54,979
-300,000
-260,000
-220,000
-180,000
-140,000
-100,000
-60,000
-20,000
20,000
60,000
100,000
140,000
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Net Inflo
w ( | C
r )
Source: Amfi, ICICIdirect.com Research
Exhibit 19: AUM remains healthy
399775
415087
428212
450533
467418
468022
484802
468668
469675
496696
520020
543541
568770
300000
400000
500000
600000
700000
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
| 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 and Gilt funds
March and April were highly volatile months for bond markets. The
10 year yield was under pressure owing to demand-supply
mismatch and fears of fiscal slippage. Bond markets were hit by
weak sentiments owing to a confluence of these factors. However
positive newsflow in the form of lower and a backended central
government borrowing calendar, spreading out of borrowing
maturity buckets and a dovish RBI policy combined to alleviate
pressure on yields. The 7.17% 2028 10 year bond yield softened to
as low as 7.13% in early April. Subsequently, news of heavy first
half borrowings by state governments and rising crude oil prices
pushed yields back up towards 7.50% by mid April. Headline CPI for
March at 4.28% was subdued on the back of softer food inflation.
Earlier, the April MPC policy revised its inflation projection revised
downwards to 4.4-4.7% in H1FY19 and 4.4% in H2FY19
Short-term 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 inflows
34,6
47
5,1
24
-20,6
85
60,0
84
8,3
90
-50,0
90
40,8
45
9,3
74
-60,1
51
-9,8
71
-9,7
99
-13,7
19
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
60,000
80,000
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan-1
8
Feb-1
8
Mar-
18
Net In
flow
s
(| .
Cr)
Source: Amfi, ICICIdirect.com Research
Exhibit 21: AUM remains stable on consistent inflows
794679
743783
780797
792734
778266
845484
858188
809965
855478
867736
808252
801405
791494
400000
500000
600000
700000
800000
900000
Mar-
17
Apr-17
May-17
Jun-17
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-17
Dec-17
Jan-1
8
Feb-18
Mar-
18
| C
rore
Income
Source: Amfi, ICICIdirect.com Research
Recommended funds
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
decline, going forward
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
Gilt
ICICI Pru LT Gilt Fund – PF Option
Aditya Birla Sun Life Gilt Plus – PF Plan
(Refer www.icicidirect.com for details of the fund)
View
Ultra-short term Income: Neutral
Short-term Income : Positive
Long-term Income: Neutral
Short-term Gilt : Neutral
Long –term Gilt : Neutral
ICICI Securities Ltd. | Retail MF Research Page 15
Gold: Outlook anchored to Fed movement
Gold prices continued to trade in a narrow range during March
despite capital market volatility in the wake of news flows
surrounding trade sanctions by the US and China
Global prices continued to trade above US$1300 per ounce while
Indian prices are trading above | 31000 per 10 grams. Gold prices,
however, started 2018 on a good note with gains extending in
January
While trade war fears could have led to much larger gains in gold
prices, the indication of higher rate hikes by the US Federal Reserve
is keeping prices under check. The Fed, after raising rates thrice in
2017 and once in 2018 is pretty much on course for two more rate
hikes in this year
While the key inflation measure remains below the targeted mark of
2%, it has firmed up from earlier levels. As a result, US bond yields
hardened appreciably in recent months
US bond yields remained elevated in February ending the month at
2.7%. Rising US bond yields are sentimentally negative for gold as
it represents a higher opportunity cost of holding the metal, which
bears no interest
Weakness in the US dollar continues to provide support to gold
prices as the metal is denominated in that currency
Gold has historically been looked at as a relatively risk-free asset. Its
price movement both in India and globally, is impacted by any
actual or perceived risk build-up on economic, political or natural
fronts
Exhibit 22: Global prices in March and April
1100
1200
1300
1400
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
Price ($/ounce)
Source: Bloomberg, ICICIdirect.com Research
Exhibit 23: Indian prices in March and April
26000
28000
30000
32000
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan-1
8
Feb-1
8
Mar-
18
Apr-
18
Price (|/10…
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research Page 16
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 24: 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
L&T India Value 20 - -
Aditya Birla Sunlife Frontline Equity - 20 20
Franklin India Smaller Companies Fund 20 20 -
SBI Bluechip Fund - - 20
Kotak Select Focus Fund 20 20 -
HDFC Midcap Opportunities Fund 20 20 -
Franklin India High Growth Companies Fund 20 - -
Motilal Oswal MOSt Focused Multicap 35 Fund - 20 20
ICICI Prudential Focused Bluechip Fund - - 20
Reliance Top 200 Fund - - 20
Total 100 100 100
Source: ICICIdirect.com Research
Exhibit 25: Model portfolio performance since inception
18.5%
16.7%
15.7%
12.7%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
Aggressive Moderate Conservative BSE 100
%
Aggressive Moderate Conservative BSE 100
Source: Crisil Fund Analyser, ICICIdirect.com Research; CAGR performance as on 31 Mar 2018
ICICI Securities Ltd. | Retail MF Research Page 17
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 26: 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
Aditya Birla SL Savings Fund 20
ICICI Pru Flexible Income Plan 20
Short Term Debt Funds
Axis Regular Savings Fund 20 20
Aditya Birla Sunlife Short Term Fund 20 20
Aditya Birla Sunlife Short Term Opportunites Fund 20 20
HDFC Short Term Opportunities Fund 20 20
ICICI Prudential Regular Savings 20
IDFC SSI Short Term 20
HDFC Corporate Debt opportunities fund 20
L&T Short Term Income Fund 20 20
Total 100 100 100
Time Horizon
% Allocation
Source: ICICIdirect.com Research
Exhibit 32: Model portfolio performance since inception
8.4% 8.5% 8.9%
7.8%8.1%
8.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
0-6 Months 6Months - 1Year Above 1yr
%
Portfolio Index
Source: Crisil Fund Analyser, ICICIdirect.com Research; CAGR performance as on 31 Mar 2018
*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 18
Top Picks
Exhibit 33: Category wise top picks
Largecaps Aditya Birla Sun life Frontline Equity Fund
ICICI Pru Focused Bluechip Fund
Kotak Select Focus Fund
SBI Bluechip Fund
Midcaps HDFC Midcap Opportunities Fund
Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund
Reliance Small Cap Fund
Multicaps DSP Blackrock Opportunities Fund
Franklin India High Growth Companies Fund
L&T India Value Fund
Motilal Oswal MOSt Focussed Multicap 35 Fund
ELSS Aditya Birla Tax Relief 96 Fund
DSP Blackrock Tax Saver Fund
L&T Tax Advantage Fund
Reliance Tax Saver Fund
Balanced HDFC Balanced Fund
ICICI Pru Balanced Fund
Aditya 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 Aditya Birla Sunlife Savings Fund
ICICI Pru Flexible Income Plan
UTI Treasury Advantage Fund-Inst
Short term Aditya Birla SL Short term Fund
HDFC Medium Term opportunities Fund
Kotak Banking and PSU Debt Fund
Credit Opportunities Axis Regular Savings Fund
Aditya Birla Sun Life Medium Term Plan
L&T Short Term Income Fund
Income Funds ICICI Pru Income Fund
Aditya Birla SL Income Plus - Regular Plan
IDFC Dynamic Bond Fund
MIP Aggressive Aditya Birla SL MIP II - Wealth 25 plan
ICICI Pru MIP 25
Equity Funds & Equity-oriented Funds
Debt Funds & Debt-oriented Funds
(Refer www.icicidirect.com for details of the fund)
ICICI Securities Ltd. | Retail MF Research Page 19
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.
Terms & conditions and other disclosures:
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.
The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any
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thereon. This mail/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 distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction.
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.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Research Analysis activities.
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
distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction.
The funds 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.