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ICIC

I S

ecurit

ies –

Retail R

esearch

Monthly

Report

May 22, 2019

Mutual Fund Review

Equity Market

Update

After trading in a narrow range in April 2019, Indian equity markets turned

extremely volatile in May on expectations of the general election results.

After correcting almost 2000 points on the S&P BSE Sensex in the first half

of May, markets recovered almost all of its gains post exit poll outcome

predicting majority to the incumbent government.

Expectation of a favourable general election outcome in terms of the

incumbent party in government getting a simple majority already seems to

have been discounted by the market. Any disappointment in terms of lower-

than-expected seats for the incumbent party may lead to disappointment

along with some market correction.

Statistically, Indian markets have not outperformed global peers while the

recent rally is indeed just a catch up activity with global peers wherein global

equities gained smartly in January-February with domestic equities catching

up to it in the last three months. It was supported by strong FPI inflows who

were otherwise net sellers in CY18.

Structurally, domestic investors have stayed put in equities with the monthly

SIP run rate continuing to remain above | 8,000 crore. Domestic markets

were also buoyed by the resolution of stressed assets in the banking space

and expectations on corporate earnings witnessing a high double digit

recovery in FY19-21E.

Outlook

Earnings growth, which is key to market performance, is likely to remain

robust over the next two years. The same provides us comfort in remaining

constructive on the markets. We expect the earnings momentum to

continue, going forward. A stable currency amid an increase in crude price,

softening system interest rates (controlled inflation) and resolution of

stressed asset is expected to lead to healthy 20%+ earnings CAGR in FY19-

21E. Earnings growth at the index level may be led by the index heavyweight

banking & NBFC space, which is expected to report earnings CAGR of 36.1%

in FY19-21E. Accordingly, we maintain our positive stance on banking and

diversified funds while being overweight on the banking sector.

The global macro set-up (dovish outlook by Fed, range bound crude) as well

as domestic macroeconomic indicators such as RBI rate cut (possibility of

further rate cuts), driven by benign inflation and stable currency levels, are

key drivers of our positive outlook on markets. With uncertainty around

elections results behind, a majority government is likely to bode well for

equity investment.

Going ahead, underlying macroeconomic growth coupled with corporate

earnings growth momentum is likely to remain a key catalyst for market

movement in the next three to five years. The resilient corporate earnings

growth across most pockets is a positive.

Volatility is expected to remain elevated in the near term as expectations of

a strong and stable government already seem to have been discounted by

the market. Therefore, investors are advised to invest in a systematic and

staggered manner over the next few months. Also, any small correction

should be used as a lumpsum investment opportunity as we do not foresee

any major correction in the near term.

Markets back to all-time highs post exit poll

prediction

Source: Bloomberg

Research Analyst

Sachin Jain

[email protected]

9000

9500

10000

10500

11000

11500

12000

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

ICIC

I S

ecurit

ies –

Retail R

esearch

Monthly

Report

Debt Market

Update

Since the start of calendar year 2019, the Indian debt market has been range

bound. This is particularly true for G-Sec yields that are trading in a narrow

range, at ~7.3-7.4% on a 10 year paper despite a 50 bps rate cut by the RBI

in two tranches, inflation remaining under control and benign global yields.

Higher government borrowing and ongoing liquidity crises is preventing the

favourable fundamentals factors from lowering bond yields.

The credit environment continues to remain weak. NBFCs who raised money

through structures like loan against share or subsidiaries whose parent is

facing liquidity deficit are finding it difficult to roll over their deposits.

Accordingly, they have seen credit being downgraded to default rating. The

mark to market on these investments is leading to specific debt schemes

delivering negative returns.

We have been cautious on the credit environment and evaluating individual

investment in all debt schemes. We are avoiding all companies related to a

corporate house whose individual as well as consolidated debt levels seems

unsustainable basis future business outlook.

Liquidity deficit increased to more than | 70000 crore in April from | 57000

crore in March. Money market rates hardened as a result with the two

months CD levels rising 50 bps while one year CD rates went up 30 bps

approximately. Given the tight liquidity conditions, the RBI announced open

market operations (OMO) auctions of | 25000 crore in May and another

dollar swap auction by US$5 billion to further inject liquidity.

Outlook

Given the benign global yield backdrop and favourable inflation-growth

dynamics, there is room for a further rate cut by the RBI. The RBI is also

increasingly focusing to ensuring liquidity deficit improves through forex

swap programme and OMO auctions. The same is likely to supply durable

liquidity and improve transmission, going ahead. The current lower

government spending is also set to improve post election results.

The growth –inflation dynamic favours more rate cuts from the Reserve Bank

of India. CPI has been below 4% for nine months now while core CPI, which

peaked at ~6-6.25% in October, has now trended down. It is now at around

4.5%. At the same time, almost all high frequency data like auto sales,

consumer sector related volume growth, IIP, tight liquidity in NBFC sector,

all indicate at a slowdown in economic activity. We expect more than one

rate cut from RBI during the current calendar year 2019.

Structurally, we continue to remain positive on the Indian debt market. Good

quality short-term funds and corporate bond fund category are best placed

for long term fixed income allocation. It is better to continue to avoid the

credit risk fund category.

Once the liquidity tightness abates and supply concerns are addressed, we

expect bond yields, both sovereign and corporate bond, to trend lower from

current levels over a period of time.

Short-term debt funds or lower duration funds are better placed over the

next few months. We maintain our cautious stance on credit risk funds or

funds with higher credit risk. The corporate bond fund category is best

placed for long term debt allocation.

G-Sec yield trading around the lower end of its

recent range at 7.3%

Source: Bloomberg

7.0

7.2

7.4

7.6

7.8

8.0

8.2

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Yie

ld (

%)

ICICI Securities | Retail Research 2

ICICI Direct Research

Monthly Report | Mutual Fund Review

Industry Synopsis

The MF industry AUM rose 4.0% in April to ~| 24.8 lakh crore on the back

of inflows into debt funds.

While liquid fund inflows were dominant in the debt fund category, other

category of funds like ultra short term funds, money market funds and

corporate bond funds category also witnessed inflows during April 2019.

In the equity funds category, multicap funds witnessed highest inflows

followed by small cap funds. Aggressive hybrid funds continued to witness

outflows for a fourth consecutive month.

Exhibit 1: HDFC MF retains top spot in terms of total AUM

Source: ACE MF

Exhibit 2: Multicap funds record highest inflows, hybrid funds

continue to witness outflows

Source: AMFI

Exhibit 3: Corporate bond funds witness inflows apart from

short maturity funds. Credit funds witness outflows

Source: AMFI

42%

38%

53%

34%

47%

43%

36% 40%

45%

27%

54%

54%

44%

60%

47% 5

1%

57%

54%

51

%

69%

4%

8%

3% 6

%

6%

5% 7%

6%

4%

4%

347190

330751

297350

250206

225419

157723

153185

125646

99168

78508

0

50000

100000

150000

200000

250000

300000

350000

400000

0%

20%

40%

60%

80%

HD

FC

ICIC

I

SB

I

Adit

ya B

irla

Reliance

UTI

Kotak

Franklin

Axis

IDFC

| c

rore

Equity % Debt% Others% AUM

Equity Oriented Category Inflow/(Outflow) during April 2019

Multi Cap Fund 1,873

Aggressive Hybrid Fund (2,121)

Large Cap Fund 48

Balanced Advantage 155

ELSS 459

Mid Cap Fund 491

Sectoral/Thematic Funds 567

Value Fund/Contra Fund 40

Large & Mid Cap Fund (21)

Small Cap Fund 956

Focused Fund 228

Equity Savings (708)

Dividend Yield Fund (32)

Equity Oriented CategoryInflow/(Outflow) during

April 2019

AUM

Liquid Fund 89,778 477,843

Low Duration Fund 4,913 89,822

Ultra Short Duration Fund 11,037 87,145

Short Duration Fund 2,771 80,721

Credit Risk Fund (1,253) 79,644

Corporate Bond Fund 3,874 61,329

Money Market Fund 6,419 59,018

Medium Duration Fund (531) 36,556

Banking and PSU Fund 2,792 35,682

Floater Fund 348 30,058

Dynamic Bond Fund 412 19,861

Overnight Fund 96 11,310

Medium to Long Duration Fund 264 10,128

Gilt Fund (41) 7,546

Long Duration Fund 8 1,130

Gilt Fund with 10 year constant duration 33 548




Category Analysis

Equity Funds

Indian markets witnessed a turnaround in performance in the last three

month since February 2019. After remaining subdued since the start of

CY18, markets have regained momentum since March 2019 and are back

near all-time high levels.

Sector rotation is being seen with banking, infrastructure funds significantly

outperforming in the recent uptrend while the IT sector, which the best

performing sector since January 2018, underperformed significantly.

We have been recommending banking funds since the start of CY19 as we

believe that underperformance coupled with improved earnings growth

outlook over the next two years make it well positioned to deliver a superior

performance.

Exhibit 4: IT remains best performing category over last year but shift in sector performance seen since February 2019 as

banking, infra outperform in recent rally

Source: CRISIL. Category average annualised returns as on May 20, 2019

Exhibit 5: Equity market witnesses sharp reduction in inflows

in equity oriented funds

Source: ACE MF

Exhibit 6: Multicap funds have highest AUM within all

category of funds

Source: ACE MF

12.3

9.3

7.2

4.1

2.1

1.0

0.8

-0.5

-1.5

-5.6

-6.3

20.3

11.9

13.3

13.8

-2.0

13.1

12

.8

13.2

13.0

11.6

10.5

10.3

14.6

13.7

11.3 13.1

8.3

13.5

12

.3

12.9

13.1

9.4

14.1

15.3

-10

-5

0

5

10

15

20

25

30

Bankin

g

Technolo

gy

Large C

ap

Focused

Pharm

a

Large &

Mid

cap

Mult

i cap

ELS

S

Valu

e/C

ontra

Infr

astructure

Mid

cap

Sm

all C

ap

Returns (

%)

1 year 3 Year 5 year

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

Nov-18

May-19

Net In

flo

w ( |

C

r )

Equity + ELSS + Balance

Equity Oriented Category AUM

Multi Cap Fund 152,056

Aggressive Hybrid Fund 146,292

Large Cap Fund 126,596

Balanced Advantage 92,833

ELSS 92,044

Mid Cap Fund 75,058

Sectoral/Thematic Funds 62,082

Value Fund/Contra Fund 58,196

Large & Mid Cap Fund 51,427

Small Cap Fund 43,872

Focused Fund 37,393

Equity Savings 18,749

Dividend Yield Fund 4,826




Equity Diversified funds

Midcap and small caps corrected significantly since the start of calendar year

2018, offering an investment opportunity in select stocks. However, many

midcaps and small cap stocks had significantly outperformed prior to the

recent correction. In general, many midcap/small cap stocks are offering a

good investment opportunity, particularly in a stable government

environment. Investors may consider investing lumpsum amount in

midcap/small cap funds from a long term perspective.

Multicap funds offer fund managers flexibility to allocate funds across all

market segments. Therefore, they are relatively better placed from a long

term perspective. Multicap funds should form the major portion of an

investor’s equity allocation.

Exhibit 7: Multicap oriented funds remain largest category in terms of AUM

Source: ACE MF

Banking funds – In focus

The banking sector is poised to benefit from multiple tailwinds in the form

of a revival in credit growth, softness in bond yields and clarity over the PCA

framework. Also, earnings growth over the next two years for the banking

sector is largely to be significantly higher at around 36%. The same is likely

to drive the sector performance.

We believe the banking sector may outperform and lead the next market

rally, particularly with expectation of a stable government returning post

general elections. Investors may invest in banking funds as part of their

thematic allocation with an investment horizon of more than two to three

years.

Expectations of a recovery in profit for large corporate banks, led by

moderation in provision resulted in the recent rally in large private banks

and public sector banks.

In our opinion, as challenges surrounding growth and asset quality have

receded, we expect large banks to continue to benefit disproportionately on

growth and thereby operating profit.

We believe the banking sector will outperform and continue to lead the

market rally over the next few quarters. Investors may invest in banking

funds as part of their thematic allocation with an investment horizon of more

than two to three years.

261679

126596

75058

43872

0

50000

100000

150000

200000

250000

300000

Multi Caps (Multicap + Large & Midcap

+ Value/Contra)

Large Caps Mid Caps Small Caps

Recommended Funds

ICICI Pru Banking & Fin Services Fund

Reliance Banking Fund




Exchange Traded Funds (ETFs)

Exhibit 8: ETF AUM rises significantly in last few years on

back of institutional money from EPFO into Sensex/Nifty ETF

Source: AMFI

Exhibit 9: April sees outflows as tactical CPSE investors who

invested in March booked profits in April

Source: AMFI

Exhibit 10: There are around 15 categories of ETFs available

Source: ACE MF

60000

80000

100000

120000

140000

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

| C

rore

Equity ETFs

305

2694

8313

-3982

178524092820

1634

10878

721

5234

10540

-4241

-10000

-5000

0

5000

10000

15000

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

Net Inflow

( |

Cr )

Equity ETFs

Nos. Types of ETFs Name of ETF

I Largecap oriented ETFs

1 Nifty 50 ETF Most AMCs

2 Sensex ETF Most AMCs

3 BSE 100 ETF SBI-ETF BSE 100

4 Nifty 100 ETF ICICI Pru Nifty 100 ETF

LIC MF ETF-Nifty 100

Reliance ETF Nifty 100

5 Nifty 100 Quality 30 ETF Edelweiss ETF - Nifty 100 Quality 30

6 Nifty Low Vol 30 ETF ICICI Pru Nifty Low Vol 30 ETF

7 Nifty Next 50 ETF Aditya Birla SL Nifty Next 50 ETF

ICICI Pru Nifty Next 50 ETF

SBI-ETF Nifty Next 50

UTI-Nifty Next 50 ETF

8 Sensex Next 50 ETF SBI-ETF Sensex Next 50

UTI S&P BSE Sensex Next 50 ETF

9 NV 20 ETF ICICI Pru NV20 ETF

Kotak NV 20 ETF

Reliance ETF NV20

II Midcap Oriented ETFs

10 Midcap 100 ETF Motilal Oswal Midcap 100 ETF

11 Nifty Midcap 150 Reliance ETF Nifty Midcap 150

12 Midcap Select ETF ICICI Prudential Midcap Select ETF

III ETF in Multicap segment

13 S&P BSE 500 ETF ICICI Pru S&P BSE 500 ETF

IV ETFs based on sectors/Themes

14 Banking ETF Edelweiss ETF - Nifty Bank

Kotak Banking ETF

SBI-ETF Nifty Bank

15 PSU Bank ETF Kotak PSU Bank ETF

Reliance ETF PSU Bank BeES

ETFs as a category are gaining popularity. Apart

from Sensex or Nifty ETFs, many other equity

oriented ETFs are now available tracking various

indices across market cap and sectors




Hybrid funds

Inflows into aggressive hybrid funds have shown a consistent decline over

the last few months. April 2019 witnessed a fourth consecutive outflow at

~| 2121 crore. Volatile equity markets resulting in negative returns for the

category while imposition of dividend distribution tax (DDT) on equity

mutual funds in the last Budget have dampened investor sentiments

considerably in balanced funds.

For the first time, Amfi has given category wise flows and AUM data. While

Aggressive hybrid funds (erstwhile balanced funds) continue to be largest

category, dynamic asset allocation funds have also grown significantly in the

last few years.

Most hybrid funds witnessed outflows during April as investors earlier got

attracted due to higher returns as equity markets did well leading most

hybrid funds returning good returns. However, as equity markets have

started doing well, hybrid funds are likely to attract inflows again.

Exhibit 11: Aggressive hybrid funds see outflows for fourth

consecutive month

Source: AMFI

Exhibit 12: Almost all hybrid funds category witness outflows

in April

Source: AMFI

Debt Funds

Exhibit 13: Fall in G-sec yields lead to duration/gilt funds outperforming in last six month. Credit funds average shift lower due

to negative return in few funds

Source: CRISIL. Category average annualised returns as on May 20, 2019

-4000

-2000

0

2000

4000

6000

8000

10000

Apr-17

Jul-17

Oct-17

Jan-18

Apr-18

Jul-18

Oct-18

Jan-19

Apr-19

Net Inflow

( |

Cr )

Balanced

Hybrid Category

Inflow/(Outflo

w) during

April 2019

AUM

Balanced Hybrid Fund/Aggressive Hybrid Fund(2,121) 146,292

Dynamic Asset Allocation/Balanced Advantage155 92,833

Arbitrage Fund 1,529 50,495

Equity Savings (708) 18,749

Conservative Hybrid Fund (239) 15,228

Multi Asset Allocation (230) 12,610

14.9

11.5

9.2

8.9

8.8

8.6

8.2

8.0

7.0

6.9

6.4 6.0

5.2

10.6

9.6

7.7

7.6

7.7

7.5

7.5 7.8

6.9

6.4

6.2

6.1

5.0

8.2

7.4

7.0

6.4 6.9

7.0

7.1 7.4

6.8

6.8 7.0

6.1 6

.7

0

2

4

6

8

10

12

14

16

18

Long D

uratio

n

Gilt F

unds

Corporate B

ond

Mediu

m t

o L

ong

Duratio

n

Dynam

ic B

ond

Short D

uratio

n

Money M

arket

Low

Duratio

n

Liq

uid

Ult

ra S

hort D

uratio

n

Mediu

m D

uratio

n

Overnig

ht

Credit

Ris

k

Returns (

%)

6 months 1 year 3year




Short-term debt allocation (investment horizon of less than a

year)

We believe ultra-short term funds and low duration fund categories offer a

relatively better investment opportunity.

Ultra short-term bond funds and low duration funds are an ideal option to

park money temporarily compared to overnight or liquid fund categories.

They offer higher return potential by investing a higher proportion in a mix

of corporate bonds and commercial papers compared to overnight/liquid

funds. At the same time, most funds in these categories do not have exit

load restrictions, thereby making them liquid from an investors’ perspective.

Money market funds are also a worthwhile option from a liquidity and credit

quality perspective, particularly for conservative investors. However, the

return potential may be lower compared to ultra-short/low duration

categories.

Long term debt allocation (investment horizon of more than a

year)

We believe medium duration funds and credit risk funds categories offer a

relatively better investment opportunity based on risk profile of investors.

Short-term funds are also a worthwhile option for conservative investors.

However, the return potential may be lower compared to medium duration

and credit risk categories due to higher credit quality.

In the medium duration category, many funds offer an optimum mix of credit

quality along with higher return potential. Credit quality in this category is

lower than short duration funds but higher than credit risk category.

We are cautious on credit risk funds as a category, especially in the current

weak credit environment. Credit risk fund category is only suitable for

aggressive investors who want to invest for long term (more than three

years).

Categorisation of debt funds

Exhibit 14: Ultra short/low duration for short-term and corporate bond for long term

should in general be preferred category

Category Comment

Investment Horizon: Less than one year

Overnight funds Maturity up to 1 day

Liquid funds Maturity up to 91 days

Ultra short funds Maturity between 3-6 months

Low duration funds Maturity between 6-12 months

Money market funds Money market securities with maturity up to 1 year

Investment Horizon: More than one year

Short duration Maturity between 1-3 years

Medium duration Maturity between 1-4 years

Medium to long duration Maturity between 4-7 years

Long duration Maturity of more than 7 years

Dynamic bond funds Across duration

Corporate bond funds High rated instruments (AA+ and AAA)

Credit risk funds Below high rated instruments (below AA+)

Gilt funds G-Secs across maturity

Source: ICICI Direct Research

Ultra short term funds and low duration funds with

optimal mix of credit quality are better options to

invest for investment horizon of less than a year

Credit funds should be avoided in a current weak

credit environment. Corporate bond fund category is

best suited for long term debt allocation




Gold: Consolidation to continue… avoid for absolute return

Global gold prices have been trading in a range since the start of CY19. After

having rallied briefly during December 2018 and January/February 2019,

global prices have been extremely range bound.

Gold prices have been trading range bound despite news flows surrounding

US-China trade war, geopolitical tension surrounding Middle East region

particularly Iran’s US sanction and rising global capital market volatility.

One of the major factors viz. US Federal Reserve interest rate trajectory, also

seems to be benign now compared to earlier expectation of rising rate

environment. The same should have supported higher gold prices as

interest rates have inverse correlation with gold prices.

The risk on trade globally since the later part of February with equity markets

rising and bond yields rising, led investors to shy away from safe haven gold.

Many central bankers have bought gold in the last few months including the

Reserve Bank of India. Investor demand in global gold ETF is also witnessing

some interest with the holding increasing.

Historically, the performance of gold is not structural. Generally, it performs

in specific short periods of time, especially during capital market meltdown

or global recession or geopolitical tension, etc. Therefore, it may not be an

ideal long term asset class.

After having rallied sharply from US$100 in 1976 to US$850 in 1980, gold

prices corrected sharply and then underwent a long consolidation phase of

20 years. From a longer term perspective, global gold prices have been

trading in a broad range between US$1100 and US$1400 in the last five

years.

Exhibit 15: Historical gold price performance extremely not linear

Source: Bloomberg

100

500

900

1300

1700

May-74

May-78

May-82

May-86

May-90

May-94

May-98

May-02

May-06

May-10

May-14

May-18

Global prices ($/ounce)

20 year long Consolidation

Consolidation underway

since last 5 years

Gold prices in the near term may find support due to

concerns on trade war and higher volatility in capital

markets. The medium term outlook, however,

remains benign given the rising global interest rate

trajectory and reducing monetary stimulus




Model Portfolio: Equity

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, viz. 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 16: Equity Model Portfolio


Exhibit 17: Model portfolio performance

Source: ACE MF. Since inception (May 2009) CAGR return as on April 30, 2019

Particulars Aggressive Moderate Conservative

Risk ReturnHigh Risk- High

Return

Medium Risk -

Medium Return

Low Risk - Low

Return

Funds Allocation

Mirae Asset Largecap Fund 20 20 20

HDFC Equity Fund - 20 20

Principal Emerging Bluechip Fund - 20 20

ICICI Prudential Midcap Fund 20 20 -

HDFC Smallcap Fund 20 20 -

Franklin India Focused Equity Fund 20 - -

L&T India Value Fund 20 - -

Reliance Largecap Fund - 20

IDFC Core Equity Fund - - 20

Total 100 100 100

% Allocation

16.5%

15.2% 15.0%14.3%

0.0%

5.0%

10.0%

15.0%

20.0%

Aggressive Moderate Conservative BSE 100 TRI

%

Aggressive Moderate Conservative BSE 100 TRI

What’s in... What’s Out

ICICI Pru Midcap Fund L&T Midcap Fund

IDFC Core Equity Fund ICICI Pru Bluechip Fund

Moderate

HDFC Equity Fund ICICI Pru Bluechip Fund

ICICI Pru Midcap Fund L&T Midcap Fund

Aggressive

Conservative




Model Portfolio: Debt

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, viz. 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 18: Equity Model Portfolio


Exhibit 19: Model portfolio performance

Source: ACE MF. Since inception (May 2009) CAGR return as on April 30, 2019

Note: 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 Bond Fund Index; Above 1 year: Crisil Short Term Bond Fund Index

Objective LiquidityLiquidity with

moderate return

Above FD

Funds Allocation

SBI Mag Ultra Short Duration 20 20

ICICI Pru Savings Plan 20

Kotak Savings Fund 20

HDFC Medium Term Fund 20 20

IDFC Low Duration Fund 20 20 20

IDFC Corporate Bond Fund 20 20

L&T Ultra Short Term Fund 20 20

HDFC Corporate Bond Fund 20

Aditya Birla SL Corporate Bond Fund 20

Total 100 100 100

% Allocation

8.0% 7.9%8.1%

7.6%7.8%

7.9%

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




Mutual Fund Recommendation

Exhibit 20: Equity Oriented Funds


Exhibit 21: Debt Funds


Largecaps IDFC Large Cap Fund

Mirae Asset Largecap Fund

Reliance Large Cap Fund

Large and Midcaps IDFC Core Equity Fund

Principal Emerging Bluechip Fund

SBI Large and Midcap Fund

Multicaps HDFC Equity Fund

L&T India Equity Fund

UTI Equity Fund

Midcaps ICICI Prudential Midcap Fund

Kotak Emerging Equity Fund

L&T Midcap Fund

Smallcaps HDFC Small Cap Fund

L&T Emerging Businesses Fund

Reliance Small Cap Fund

Focused Franklin India Focused Equity Fund

ICICI Pru Focused Equity Fund

Reliance Focused Equity Fund

ELSS Aditya Birla Tax Relief 96 Fund

DSP Blackrock Tax Saver Fund

IDFC Tax Advantage Fund

Aggressive Hybrid HDFC Hybrid Equity Fund

ICICI Pru Equity & Debt Fund

Mirae Asset Hybrid Equity Fund

Category wise top picks

Category Fund

Overnight / Liquid / Ultra Short Term Kotak Savings Fund

L&T Ultra Short Term Fund

SBI Magnum Ultra Short Duration Fund

Low Duration / Money Market ICICI Prudential Savings Fund

IDFC Low Duration Fund

Axis Treasury Advantage Fund

Short Term HDFC Short Term Debt Fund

IDFC Bond Fund - Short Term

L&T Short Term Bond Fund

Medium Term HDFC Medium Term Debt Fund

IDFC Bond Fund - Medium Term Plan

SBI Magnum Medium Duration Fund

Medium to Long Term / Long Term Aditya Birla SL Income Fund

ICICI Pru Bond Fund

Reliance Income Fund

Dynamic Bond Fund ICICI Pru All Seasons Bond Fund

IDFC Dynamic Bond Fund

Kotak Dynamic Bond Fund

Corporate Bond Aditya Birla SL Corporate Bond Fund

HDFC Corporate Bond Fund

IDFC Corporate Bond Fund

Credit Risk Axis Credit Risk Fund

IDFC Credit Risk Fund

SBI Credit Risk Fund

Gilt IDFC G-Sec Fund - Investment Plan

Reliance Gilt Securities Fund

UTI Gilt Fund

Category wise top picks




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, Research Analyst, author and the name 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 Registration. No.: ARN-0845. Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India. ICICI

Securities Limited is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a 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, 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.

It is confirmed that Sachin Jain, 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.

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