mutual fund reviewcontent.icicidirect.com/mailimages/idirect_monthlymf...foreign portfolio investors...

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 May 21, 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

May 21, 2018


Page 2

Equity Markets

Update

Indian equity markets gained in of April, May and regained almost all of

the losses incurred in February, March amid expectations of an

earnings pickup and positive global equities

Midcap, small cap indices have been underperforming since start of

2018. However, the recent underperformance should be looked at along

with a significant outperformance in the last three to four years

Over the last couple of quarters, various lead indicators have been

pointing towards traction being gained in fundamentals. 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, will have a

multiplier effect on the growth of core sectors and GDP growth

Inflows into domestic mutual funds continue to remain strong with

inflows through SIP amount during April 2018 at around | 6700 crore. A

sustained increase in SIP inflows is a structural positive in terms of

flows into the equity market

Outlook

Structurally, the overall bias remains positive as the broader

consolidation would make markets healthy by cooling off the

overbought situation and gradually forming a higher base that would

set the stage to move higher

Concerns over rising global crude oil prices, a depreciating rupee and

trade war threats did not have any major impact on global equity

markets. However, any further escalation over these concerns may

have a negative impact on the markets. Volatility may further increase

over Karnataka election outcome and fear of rising interest rates by RBI

In the past, Sensex earnings have looked suppressed mainly due to

higher provisioning by banks, which impacted their profitability. Thus,

in the last two years, Sensex earnings (ex-banking) has been up 9.6%

YoY, nearly ~2x that of Sensex earnings (including banks - that

accounts 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. Hence, 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

The recent reclassification of funds as per new Sebi guidelines lends

large cap and midcap category funds limited scope of outperformance

over the medium term due to limited stock universe. Multicap funds are

best placed with no restriction and flexibility for the fund manager and

should form a majority of equity allocation

Nifty 50: Markets near highs

7500

8000

8500

9000

9500

10000

10500

11000

11500

12000

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

May-18

Source: Bloomberg

Midcap and smallcaps come off …

3.2

1.1

0.7

0.3

-3.0

-4.2

-8

-6

-4

-2

0

2

4

6

Sensex

BS

E 1

00

BS

E 2

00

BS

E 5

00

BS

E S

mall cap

BS

E M

idcap

Source: Bloomberg

One month returns till May 16, 2018

FMCG and IT sectors do well …

6

5

3

0

0

-1

-1

-3

-4

-8

-6

-4

-2

0

2

4

6

FM

CG IT

Bankin

g

Real Estate

Metals

Oil n G

as

CG

Auto

Healthcare

Source: Bloomberg

One month returns till May 16, 2018

Research Analyst

Sachin Jain

[email protected]

Jaimin Desai

[email protected]


Page 3

Debt Markets

Update

The fixed income markets have been on a roller coaster ride since last

year. After having been under severe pressure, the fixed income market

witnessed a sigh of relief starting with the announcement of a lower

H1FY19 borrowing calendar and lower-than-expected hawkishness by

the RBI in its monetary policy meeting. However, yields again rose

sharply as rising crude oil prices and higher state government

borrowing dented investors sentiments again

The 10-year benchmark G-Sec yield has been trading in a wide range of

7.0-7.9% with sharp volatility in this range

The demand supply dynamics, which looked positive after the central

government announced a lower-than-expected H1FY19 borrowings,

turned negative with higher state government borrowings and absence

of PSU banks buying, which are reeling under mark to market losses.

PSU banks are major buyers of government securities. Without their

presence, the demands supply dynamics will remain unfavourable

The Reserve Bank of India (RBI) has revised its rules for investments by

foreign portfolio investors (FPIs) in Indian bonds, including reduction of

residual maturity, withdrawal of the auction mechanism and revision of

the cap on aggregate FPI investments in a single security. The new

measures are likely to boost foreign fund flows into Indian debt, once

sentiments improve. One of the noteworthy changes is the scrapping of

the auction mechanism wherein FPIs were required to purchase

investment limits once the limit utilisation breached 90% of the

permitted quota. Although FPIs only paid a negligible amount to

purchase these limits, what matters here is the fact that foreign

investors will not have to worry about participating in the limit auctions

to accumulate limits even during times when their preference would be

to wait for the release of an important economic data before making

investment decisions

Outlook

The yield on corporate bonds have also risen tracking movement in G-

sec yield. Gross YTMs of most accrual or credit funds have risen more

than 30 bps last month. Net YTMs of a few credit funds with a good mix

of AAA and AA rated papers is upwards of 8.0% and makes them an

ideal investment option

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

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 more than 250 bps will narrow down once negative sentiments fade.

Corporate bond spreads are also likely to be at historic low levels as

investors search for higher accrual in a stable interest rate environment

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 close to 8% mark

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.8

8.0

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

May-18

Yie

ld (%

)

Source: Bloomberg

G-sec yield curve: Yields rise across maturities

6.85

7.75

7.977.89

6.48

7.17

7.45 7.44

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.8

8.0

1yr 3yr 5yr 10yr

Yie

ld (%

)

15-May-18 16-Apr-18

Source: Bloomberg

AAA corporate bond yield curve

8.02

8.34

8.618.70

7.51

7.75

7.92

8.29

7.2

7.6

8.0

8.4

8.8

1yr 3yr 5yr 10 yr

Yie

ld (%

)

15-May-18 16-Apr-18

Source: Bloomberg


Page 4

MF industry synopsis

MF industry AUM grew ~8.9% in April to ~| 23.2 lakh crore driven by

good inflows into liquid funds and an excellent month for equity

markets. Of the total AUM, ~34% was held by income funds, ~48% by

equity and equity-oriented funds and ~20% by liquid funds

According to Amfi data, SIP inflows for April came in at ~| 6700 crore,

down marginally from the all time high of ~| 7100 crore in the previous

month. SIP inflows averaged ~| 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 2.15 crore in April

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, equity oriented flows in FY18 were

averaging ~| 21000 crore per month, more than double that in FY17

Exhibit 1: Monthly inflows into equity-oriented funds averaged ~| 21500

crore in FY18

1000000

1200000

1400000

1600000

1800000

2000000

2200000

2400000

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

Total AUM

Source: Amfi

Exhibit 2: AUM of Top 10 AMCs

317,582

305,759

248,196

239,942

231,382

154,949

125,734

105,550

89,064

79,729

50000

100000

150000

200000

250000

300000

350000

400000

ICICI

HD

FC

Aditya

Birla

Reliance

SB

I

UTI

Kotak

Franklin

DS

P

Axis

AUM

Source: ACE MF

Exhibit 3: SBI has highest proportion of equity AUM as percentage of its

AUM

50%

48%

45%

44%

40%

38%

37%

37%

34%

33%

0%

20%

40%

60%

80%

SB

I

Fra

nklin

DS

P

HD

FC

Axis

UTI

Reliance

ICIC

I

Kota

k

Adit

ya B

irla

Equity % Debt% Others%

Source: ACE MF. Data as of April 2018

Exhibit 4: Equity funds witness significant inflows in FY18…

-10000

10000

30000

50000

70000

90000

110000

130000

150000

170000

EQ

UIT

Y

BA

LA

NCED

OTH

ER

ETFs

ELS

S -

EQ

UIT

Y

GO

LD

ETFs

GIL

T

|cro

re

Source: ACE MF. Data as of March 2018


Page 5

MF Category Analysis

Equity funds

Technology funds remained the best performing category of sector

funds. This category, along with FMCG and infrastructure,

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 -4.4% on a one-year basis

In terms of market cap-based funds, midcap funds continued their

dominance over large cap funds on a one year basis. However, on a

more recent timeframe of three months, midcap and small cap

funds have underperformed large cap funds

Structural industrywide problems continued to plague pharma

funds. Pharma stocks remain 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 May 16, 2018)

S

34.7

23.3

10.1

9.2

8.8

6.5

2.9

-4.4

11.3 1

6.7

15.0

9.5 11.6

11.8

10.2

-2.5

20.6

16.4

25.5

14.4

17.8

17.2

11.6

11.7

-10

-5

0

5

10

15

20

25

30

35

40

Technology FMCG Mid cap Large Cap Multi cap Infrastructure Banking Pharma

Returns (%

)

1 year 3 Year 5 year

Source: Crisil, ICICI Direct 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

Apr-18

Net Inflo

w ( | C

r )

Equity + ELSS + ETF

Source: Amfi, ICICI Direct Research

Exhibit 7: Robust inflow in equity funds push up AUM

350000

400000

450000

500000

550000

600000

650000

700000

750000

800000

850000

900000

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

| lakh C

rore

Equity +ELSS



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

FY14-17, AUM of large cap funds rose 155%, multi cap funds AUM

rose 95% while midcap funds AUM rose 163%

Over this period, while all three sub-categories delivered a strong

performance, midcap funds have done exceedingly well and

outperformed. This reflects in the trend of broader indices

outperforming bellwether indices in 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 in 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

34225

35399

54332

65860

93355 138634

68847

71677 1

21426

134091

183064 237264

18543

20876

48162

56642

89647

126823

0

30000

60000

90000

120000

150000

180000

210000

240000

270000

300000

Apr 13

Apr 14

Apr 15

Apr 16

Apr 17

Apr 18

|crs

Large Caps Multi Caps Mid Caps

Source: ACE MF

Recommended funds

Large cap

Reliance Large Cap Fund

ICICI Prudential Focused Bluechip Equity

SBI Bluechip Fund

IDFC Classic Equity Fund

Multi cap

L&T India Value Fund

Aditya Birla SL Advantage Fund

Kotak Standard Multicap Fund

Motilal Oswal Multicap 35 Fund

Midcap

HDFC Mid-Cap Opportunities Fund

Franklin India Smaller Companies Fund

L&T Emerging Businesses Fund

Reliance Small Cap Fund

(Refer to www.icicidirect.com for details of the fund)

View

Short term: Positive

Long-term: Positive

http://content.icicidirect.com/newsiteContent/Research/MutualFunds.asp


Page 7

Equity infrastructure funds

Rollout of the e-way bill from April, 2018 and revival in affordable

housing segment bode 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 the

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 the 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. Q4 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. This has adversely

impacted the profitability of banks, especially those with substantial

exposure to corporates. Further, a delay in resolution of large NCLT

cases referred earlier (especially in steel accounts) has pushed

anticipated respite further down the road

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




Page 8

Equity FMCG Funds

Thus far, Q4FY18 results of many FMCG companies delivered good

volume growth. Companies in the broader consumption space such as

paints, consumer finance, consumer durables also maintained a decent

growth trajectory

In the long term, we expect consumption/FMCG segment to continue to

remain the backbone of India’s growth story. 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

Although our outlook remains positive on the sector, given the

valuation premium commanded by the consumption space, investors

would be better off adopting a SIP approach in FMCG funds

Equity Pharma funds

The US generic space was impacted by weak undercurrents. Most

US focused companies are expected to suffer from a subdued

performance due to lack of meaningful launches and pricing

pressure on the base business. Domestic companies are expected

to be on track post GST implementation. Strong growth in the

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 reported mixed results. Mild dollar

revenue growth supported by cross currency tailwinds were seen in

several large cap IT names. Higher contribution from the digital

space and improving deal pipeline were a positive. FY19

management guidance for several marquee companies was muted

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 Consumption Opportunities Fund

View

Short-term: Neutral

Long-term: Neutral

View

Short-term: Neutral

Long-term: Neutral

View


Long-term: Positive





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 inflows intact

456 5841365 1753 1513

1968 1675

12447

-1604-2234

953

5082

305

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

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

Net Inflo

w ( | C

r )


Exhibit 10: ETF AUMs remain strong

45899

47584

48359

52823

53734

55166

60107

70041

70353

72879

69848

72888

77501

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

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

| C

rore

Other ETFs


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...


Page 10

Balanced funds

The balanced funds category continued to receive significant flows,

with average net monthly inflow in 2017 of ~ | 7000 crore. In April,

however, inflows into the category slowed substantially to | 3500

crore. Imposition of dividend distribution tax (DDT) on equity

mutual funds and re-introduction of LTCG tax is expected to impact

balanced funds negatively.

AUM of balanced funds witnessed a stellar increase during this

period, more than doubling to | 181306 crore in April 2018 from

| 93530 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 will be 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 fall sharply in April

7,136

7,663

7,458

7,864

8,783

8,141

5,897

7,614

9,756

7,665

5,026

6,754

3,500

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

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

Net Inflo

w ( | C

r )


Exhibit 12: YoY 93% growth in AUM of balanced funds

93530

102156

109513

121243

128320

134868

147460

155105

167385

176087

174468

172151

181306

13000

33000

53000

73000

93000

113000

133000

153000

173000

193000

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

| C

rore

Balanced


Preferred Picks

ICICI Prudential Balanced Fund

HDFC Balanced Fund

DSP Blackrock Balanced Fund

Reliance Equity Hybrid 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


Long-term: Positive



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


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




Page 12

Debt funds

Exhibit 13: Category average returns

6.5

6.4 6

.9

5.0 6

.0

7.4

2.9

5.0

7.3

-0.3

2.9

6.9

-2.1

1.3

7.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

6 months 1 year 3year%

Liquid Income Ultra Short Term Income Short Term Income Long Term Gilt

Source: Crisil, ICICI Direct Research

Note : Returns as on May 17, 2018; All returns are compounded annualised

Exhibit 14: G-sec yield curve

6.85

7.75

7.977.89

6.48

7.17

7.45 7.44

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

7.8

8.0

1yr 3yr 5yr 10yr

Yie

ld (%

)

15-May-18 16-Apr-18

Source: Bloomberg

Exhibit 15: Corporate bond curve

8.02

8.34

8.618.70

7.51

7.75

7.92

8.29

7.2

7.6

8.0

8.4

8.8

1yr 3yr 5yr 10 yr

Yie

ld (%

)

15-May-18 16-Apr-18

Source: Bloomberg

Benchmark 10 year G sec yield is near the 8% mark

Interest rates rose sharply across durations for G-Sec and

corporate bond categories


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

sharply 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

Sep-1

7

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

%

Call rate

Source: Bloomberg, ICICI Direct Research

Exhibit 17: Short term CP/CD yields

5.0

5.5

6.0

6.5

7.0

7.5

8.0

May-16

Aug-16

Nov-16

Feb-17

May-17

Aug-17

Nov-17

Feb-18

May-18

%3M CD 3M CP

Source: Bloomberg, ICICI Direct 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

116,486

-300,000

-260,000

-220,000

-180,000

-140,000

-100,000

-60,000

-20,000

20,000

60,000

100,000

140,000

180,000

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

Apr-18

Net Inflo

w ( | C

r )


Exhibit 19: AUM remains healthy

415087

428212

450533

467418

468022

484802

468668

469675

496696

520020

543541

568770

583557

300000

400000

500000

600000

700000

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

| la

kh C

rore

Money Market


Preferred Picks

HDFC Cash Management Fund - Savings Plan

SBI Magnum InstaCash

Reliance Liquid Fund - Treasury Plan


View

Neutral



Page 14

Income funds and Gilt funds

Bond markets have been highly volatile over the past few months.

The 10 year yield was under pressure owing to demand-supply

mismatch and fears of fiscal slippage, with these factors souring

sentiments. However positive newsflow in the form of lower as well

as 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,

hawkish RBI MPC minutes, news of heavy first half borrowings by

state governments and rising crude oil prices pushed yields back up

towards 7.50% by mid April. Sentiments remained weak despite

announcement of several measures aimed at easing FPI

investments in Indian bond markets. April CPI came in at 4.58% YoY

on the back of spike in core basket

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 5,2

20

-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

Apr-

18

Net In

flow

s

(| .

Cr)


Exhibit 21: AUM remains stable on consistent inflows

743783

780797

792734

778266

845484

858188

809965

855478

867736

808252

801405

791494

785553

400000

500000

600000

700000

800000

900000

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

Apr-18

| C

rore

Income


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

Aditya Birla Sun Life Savings Fund

ICICI Prudential Flexible income

Short Term Funds

Aditya 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


View

Ultra-short term Income: Neutral

Short-term Income : Positive

Long-term Income: Neutral

Short-term Gilt : Neutral

Long –term Gilt : Neutral



Page 15

Gold: Outlook anchored to Fed movement

Gold prices continued their recent trend of trading within a narrow

range. Global prices continue to trade above US$1300 per ounce in

April and May before dropping below that level over last week

Indian prices are trading at just below | 31000 during April and have

now moved above that mark

The intermittent good performance of gold since the turn of the

year would have been in some part due to trade war fears.

However, prices since then are perhaps being kept in check by the

possibility of further rate hikes by the US Fed later this year

The volatility in global equity markets is expected to be higher

compared to the previous year. Concerns over trade wars and

movement in currency market may also be higher. This may be

beneficial for gold prices in the near term Key inflation measure

remains below the targeted mark of 2%. US bond yields hardened

appreciably in recent months, breaching the 3% mark recently.

Elevated bond yields are sentimentally negative for gold as it

represents a higher opportunity cost of holding the metal, which

bears no interest

US dollar reversed its weakness against basket of major currencies

and is now trading higher over the last few days. A strong dollar is

negative for gold since 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 dip in May

1100

1200

1300

1400

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

May-18

Price ($/ounce)

Source: Bloomberg

Exhibit 23: Indian prices on stronger footing compared to global prices

26000

28000

30000

32000

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

May-18

Price (|/10 grams)

Source: Bloomberg


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 Fund 20 - -

Aditya Birla SL Advantage Fund - 20 20

Franklin India Smaller Companies Fund 20 20 -

SBI Bluechip Fund - - 20

Kotak Standard Multicap Fund 20 20 -

HDFC Midcap Opportunities Fund 20 20 -

Reliance Small Cap Fund 20 - -

Motilal Oswal Multicap 35 Fund - 20 20

ICICI Prudential Focused Bluechip Fund - - 20

Reliance Large Cap Fund - - 20

Total 100 100 100

Source: ICICI Direct Research

Exhibit 25: Model portfolio performance since inception

19.2%

17.5%

16.4%

13.5%

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, ICICI Direct Research; CAGR performance as on 30 Apr 2018

What’s In

Aggressive


Moderate


Conservative


What’s Out

Aggressive

Franklin India High Growth Companies Fund

Moderate

Aditya Birla SL Frontline Equity Fund

Conservative

Aditya Birla SL Frontline Equity Fund

(Note-The performance table alongside showcases

returns of the earlier portolios. Portfolio changes will be

reflected in the next month.)


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

Funds Allocation

Ultra Short term Funds

Aditya Birla SL Savings Fund 20 20

ICICI Pru Flexible Income Plan 20

Franklin India Ultra Short Bond Fund 20

Short Term Debt Funds

Axis Strategic Bond Fund 20 20

Aditya Birla Sunlife Short Term Fund 20 20

Aditya Birla SL Medium Term Fund 20

HDFC Short Term Debt Fund 20 20

ICICI Prudential Regular Savings 20

UTI Medium Term Fund 20

L&T Low Duration Fund 20 20

Total 100 100 100

Time Horizon

% Allocation

Source: ICICI Direct Research

Exhibit 32: Model portfolio performance since inception

8.4% 8.5%8.8%

7.9%8.2%

8.4%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0-6 Months 6Months - 1Year Above 1yr

%

Portfolio Index

Source: Crisil Fund Analyser, ICICI Direct Research; CAGR performance as on 30 Apr 2018

*Index: 0-6 month’s portfolio – Crisil Liquid Fund Index; six months-one year – Blended Index with 50% weight to

Crisil Liquid Index, 50% weight to Crisil Short Term Index; Above 1 year: Crisil Short Term Index

What’s In

0 – 6 months

Franklin India Ultra Short Bond Fund

6 months – 1 year

Aditya Birla SL Savings Fund

Above 1 year

Aditya Birla SL Medium Term Fund

UTI Medium Term Fund

What’s Out

0 – 6 months

IDFC SSI Short Term Fund

6 months – 1 year

Aditya Birla SL Short Term Opportunities Fund

Above 1 year

HDFC Corporate Debt Opportunities Fund

Aditya Birla SL Short Term Opportunities Fund

(Note-The performance table alongside showcases returns of

the earlier portolios. Portfolio changes will be reflected in the

next month.)


Page 18

Top Picks

Exhibit 33: Category wise top picks

Largecaps ICICI Pru Focused Bluechip Fund

Kotak Standard Multicap Fund

SBI Bluechip Fund

Reliance Large Cap Fund

HDFC Equity Fund

Midcaps HDFC Midcap Opportunities Fund

Franklin India Smaller Companies Fund

L&T Emerging Businesses Fund


Multicaps DSP Blackrock Equity Opportunities Fund

IDFC Classic Equity Fund

L&T India Value Fund

Motilal Oswal Multicap 35 Fund

Aditya Birla Sun Life Advantage Fund

ELSS Aditya Birla Tax Relief 96 Fund

DSP Blackrock Tax Saver Fund

IDFC Tax Advantage Fund

Reliance Tax Saver Fund

Balanced HDFC Balanced Fund

ICICI Pru Balanced Fund

Reliance Equity Hybrid Fund

DSP Equity and Bond Fund

Liquid HDFC Money Market Fund

ICICI Pru Liquid Fund

Reliance Liquid Fund

Ultra Short term Aditya Birla SL Savings Fund

ICICI Pru Savings Fund

IDFC Ultra Short Term Fund

Short term Aditya Birla SL Corporate Bond Fund

HDFC Corporate Bond Fund

L&T Low Duration Fund

Credit Opportunities Axis Strategic Bond Fund

Aditya Birla Sun Life Medium Term Plan

UTI Medium Term Fund

Income Funds ICICI Pru Long Term Bond 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




Page 19

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st

Floor, Akruti Trade Centre,

Road No. 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]

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

other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. The contents of this mail are solely for informational purpose and may not be used or

considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in

preparing this mail, I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance

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.

http://www.icicidirect.com/

mutual fund reviewcontent.icicidirect.com/mailimages/idirect_monthlymf...foreign portfolio investors...

Documents