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Mutual FundReview
Mutual Fund Review
December 21, 2017
ICICI Securities Ltd. | Retail MF Research
Note: Whenever, returns for the scheme are shown in the report, they are for the growth option of the scheme.
Mutual Fund Review
Equity Markets ...................................................................................................... 2 Debt Markets ........................................................................................................ 3 MF industry synopsis ............................................................................................ 4 MF Category Analysis ........................................................................................... 5
Equity funds ....................................................................................................... 5 Equity diversified funds ......................................................................................... 6 Equity infrastructure funds ................................................................................... 7 Equity banking funds ............................................................................................. 7 Equity FMCG Funds ............................................................................................... 7 Equity Pharma funds ............................................................................................. 8 Equity Technology Funds ...................................................................................... 8
Exchange Traded Funds (ETF) ........................................................................... 9 Balanced funds ................................................................................................ 10 Monthly Income Plans (MIP) .......................................................................... 11 Arbitrage Funds ............................................................................................... 11 Debt funds ........................................................................................................ 12
Liquid Funds 13 Income funds ....................................................................................................... 14 Gilt Funds 15 Gold: Outlook anchored to geopolitical worries, Fed movement ...................... 16 Model Portfolios .................................................................................................. 17
Equity funds model portfolio ........................................................................... 17 Debt funds model portfolio .............................................................................. 18
Top Picks ............................................................................................................. 19
December 21, 2017
ICICI Securities Ltd. | Retail MF Research
Page 2
Equity Markets
Update
Indian headline benchmarks have been trading in a narrow range near
all-time levels in the last two months since November 2017. However,
broader indices, as represented by midcaps and small caps, continued
their upwards trajectory and made new highs almost on a daily basis in
December as well
The year 2017 has been an extremely rewarding one for retail mutual
fund investors. The category average return of large cap funds, multi
cap funds and mid & small cap funds in 2017 is around 30%, 32% and
41%, respectively
Global equity markets have also witnessed a positive momentum in the
last year with most major markets delivering returns in the range of 15-
30%. The same has also supported markets while the market
performance of India is in sync with its global peers
The equity market performance in 2017 has been more widespread with
most sectors except IT (~7%) and pharma (~-4%), which
underperformed while real estate (88%) outperformed delivering
returns in the range of 30-40%
Unlike the previous few quarters, which were marred by earnings
downgrades, corporate earnings, thus far, in Q2FY18 have not belied
expectations and have led consensus EPS for FY18 and FY19 to remain
stable. Retail consumer focused sectors like automobiles, consumer
durables, fast moving consumer goods (FMCG), media and
entertainment, hospitality and retail posted strong double digit sales
growth indicating a revival in consumer demand. Sectors such as
cement also reported better-than-expected volume growth
Domestic mutual funds were dominant buyers in the CY17, pumping in
more than | 1 lakh crore in 2017 till November. Investment by mutual
funds is backed by consistent strong inflows by retail investors. Equity
oriented funds witnessed ~| 18300 crore of inflows in 2017 till October
Outlook
The outlook for the market continues to remain positive. Recent
quarterly results were in line with expectations and indicate earnings
recovery, going forward, could be far better as is widely expected
GST implementation, demonetisation impact and the medium term
benefit of both these events is likely to be witnessed, going forward
Relative unattractiveness of other asset classes is likely to continue to
attract inflows into equity market
Investors who continued their SIP or systematic investment approach
benefitted the most from the market rally in 2017. Year 2016 was very
volatile and saw sharp market movements dominated by global markets
and demonetisation. Investors who continued their investment during
this period accumulated funds at lower levels and later benefitted from
the rally in recent months. Time and again it has been witnessed that
volatility is a blessing in disguise for long term investors
The overall bias remains positive. However, given the sharp rally in
recent months, it is better to avoid lumpsum investment and continue
with the staggered buying approach
Nifty 50: Markets remain near all-time highs
7500
8000
8500
9000
9500
10000
10500
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Source: Bloomberg, ICICIdirect.com Research
Smallcap, midcap indices remain outperformer
3.7
2.6
1.4
1.3
1.0
0.8
0
1
2
3
4
BS
E S
mall cap
BS
E M
idcap
BS
E 5
00
BS
E 2
00
BS
E 1
00
Sensex
Source: Bloomberg
One month returns till November 15, 2017
Real estate, capital goods bounce back, healthcare,
metals drag
4
3 3 3
2
1
1
-1
-1
-6
-4
-2
0
2
4
6
Oil n G
as
Auto
Healthcare
FM
CG IT
CG
Real Estate
Metals
Bankin
g
Source: Bloomberg
One month returns till November 15, 2017
Research Analyst
Sachin Jain
Jaimin Desai
ICICI Securities Ltd. | Retail MF Research
Page 3
Debt Markets
Update
The Indian fixed income market remained under pressure especially
longer dated securities with G-sec yields continuing to inch upwards
due to concerns arising from rising inflation, fear of fiscal slippage,
rising international crude oil prices and higher global bond yields
The yield on the 10-year benchmark crossed 7.0% in November and
rose to 7.1% before the monetary policy meeting in the first week of
December 2017. The yield on 10-year AAA corporate bonds moved in
tandem with G-sec yields and rose close to 7.9%
RBI in its monetary policy maintained status quo on the repo rate at
6.0%, as per expectations. The monetary policy decision was favoured
by five of the six committee members, with the solitary dissent (Mr
Dholakia) in favour of a policy rate reduction of at least 25 bps
RBI retained its neutral policy stance, with GVA projections at 6.7%.
They marginally raised H2FY18 CPI estimates at 4.3-4.7%. Upside
inflationary risks are from higher oil prices, state’s HRA impact, fiscal
slippages, rising inflation expectations and higher input costs
From a significant surplus, domestic liquidity has continued to decline
on the back of currency leakage, open market sales and MSS. In the
post policy conference, RBI noted that it expects system liquidity to be
neutral by H1FY19. The clarity provided on RBI’s liquidity operations is
welcome. It seems OMO actions would be undertaken in response to
forex flows while OMO sale would not happen to drain liquidity
Outlook
We do not expect a reversal in the interest rate cycle in the near future
and expect RBI to keep repo rate unchanged at 6.0% during CY18
The recent up move in G-Sec yield with 10-year yield moving to around
7.15% is more of a retracement of bullish positioning as investors
adjust from declining rate cycle to a prolonged status quo phase in
benchmark rates
Historically, 10-year G-Sec yield spread over repo ranges between 40
bps and 120bps for most of the period. We believe the current spread
of 115 bps will narrow down once negative sentiments fades. Corporate
bond spread is 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 offer a better investment option
G-sec yields break above 7% after 14 months
6.0
6.4
6.8
7.2
7.6
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Yie
ld (%
)
Source: Bloomberg
G-sec yield curve: Yields steepen across
maturities
6.14
6.59
6.88
7.05
6.28
6.62
6.99
7.20
6.0
6.2
6.4
6.6
6.8
7.0
7.2
1yr 3yr 5yr 10yr
Yie
ld (%
)
13-Dec-17 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
AAA corporate bond yield curve steepens across
maturities
6.99
7.307.33
7.90
7.03
7.40
7.57
7.96
6.4
6.8
7.2
7.6
8.0
1yr 3yr 5yr 10 yr
Yie
ld (%
)
13-Dec-17 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 4
MF industry synopsis
Total assets managed by mutual funds touched a fresh record high of
~| 22.8 lakh crore in November 2017, up ~6.4% over the October
figure of | 21.4 lakh crore. This represents a ~38.1% increase YoY. Of
the total MF corpus, ~38% was held by income funds and ~32% by
equity and ELSS funds
According to AMFI data, systematic investment plans (SIPs) inflows for
November were at ~| 5900 crore, up from ~| 5600 crore previously.
SIP inflows average ~| 5000 crore per month in FY18 against ~| 3600
crore per month in FY17, a rise of 39%. The trend of rise in SIP inflows
is a welcome one. However, SIP flows as a percentage of inflows into
equity and equity-oriented funds has reduced from ~36% in FY17 to
~25% in FY18. This suggests that while more and more investors are
turning to SIPs as a preferred investment mode (the number of SIP
folios has zoomed 33% in FY18), the majority of equity inflows are
lumpsum in nature
In the trailing 12 months, the mutual fund industry saw a net inflow of
| 4.55 lakh crore. Out of the total net inflow, | 1.35 lakh crore came into
equity and ELSS funds, about 32%
Thus far, inflows into equity and equity oriented flows in FY18 are
averaging ~| 20000 crore per month, nearly double that in FY17.
November saw a net inflow of ~| 38085 crore in equity and equity-
oriented funds, of which | 12447 crore was in ETFs, aided by Bharat 22
ETF issue
Exhibit 1: Equity, equity-oriented funds receiving ~|20,000 crore per
month on average, thus far in FY18…
1000000
1200000
1400000
1600000
1800000
2000000
2200000
2400000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Total AUM
Source: AMFI
Exhibit 2: AUM of Top 10 AMCs 304,940
289,786
247,201
243,758
206,522
156,446
124,358
102,579
90,099
77,486
50000
100000
150000
200000
250000
300000
350000
ICICI
HD
FC
Reliance
Aditya
Birla SB
I
UTI
Kotak
Franklin
DS
P
Axis
AUM
Source: ACE MF
Exhibit 3: Franklin Templeton has highest proportion of equity AUM as
percentage of its AUM, SBI a close second
48%
47%
43%
39%
39%
35%
34%
34%
32%
30%
0%
20%
40%
60%
80%
Franklin
SB
I
HD
FC
ICICI
DS
P
Axis
Reliance
UTI
Kotak
Aditya B
irla
Equity % Debt% Others%
Source: ACE MF. Data as of October 2017
Exhibit 4: Within retail category, equity funds witness significant inflows
in FY17…
-2000
4000
10000
16000
22000
28000
34000
40000
46000
52000
58000
EQ
UITY
BA
LA
NC
ED
OTH
ER
ETFs
ELS
S -
EQ
UITY
GO
LD
ETFs
GILT
FY16
Source: ACE MF. Data as on March 2017
ICICI Securities Ltd. | Retail MF Research
Page 5
MF Category Analysis
Equity funds
FMCG funds emerged as the best performing category of equity funds.
This category along with infrastructure as well as banking funds
continued to outperform information technology (IT) and pharma funds
by wide margins. Pharma funds were once again in the red, returning
~(2.1)%
In terms of market cap-based funds, midcap funds continued their
dominance over large cap funds. Overall, midcap funds were among
the best performing equity fund categories on a one-year basis
Structural industrywide problems continue to plague pharma and
technology funds. Pharma stocks delivered a muted performance in
Q2FY18 amid persistent pressure over pricing, compliance issues and a
fear of shrinking growth in the large US market. Challenges to
traditional services, H1B visa issues and US government action fears
persisted on overhangs over technology stocks and consequently,
technology funds
Exhibit 5: FMCG funds outperform other categories on a one year basis with pharma funds still
under pressure (returns as on December 18, 2017)
S
45.0
41.0
39.9
36.9
32.8
29.7
15.5
-2.1
15.2
19.1
15.2
11.6
13.7
11.1
6.2
3.5
15.4
25.1
16.8
13.4 18.0
14.9
18.0
15.0
-10
0
10
20
30
40
50
FMCG Mid cap Infrastructure Banking Multi cap Large Cap Technology Pharma
Returns (%
)
1 year 3 Year 5 year
Source: Crisil, ICICIdirect.com Research ; Returns over one year are compounded annualised returns
Exhibit 6: Strong inflows continue into equity and ELSS schemes
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
22000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Net Inflo
w ( | C
r )
Equity + ELSS
Source: AMFI, ICICIdirect.com Research
Exhibit 7: Robust inflow in equity funds push up AUM to cross | 7 lakh
crore
350000
400000
450000
500000
550000
600000
650000
700000
750000
800000
Nov-1
6
Dec-1
6
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
| lakh C
rore
Equity +ELSS
Source: AMFI, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 6
Equity diversified funds
Equity diversified funds witnessed robust growth over the last three
years, with AUM within each sub-category rising substantially. In the
last three years in FY14-17, the AUM of large cap funds rose 119%,
multi cap funds AUM rose 100% while midcap funds AUM rose 198%
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 some points during the past few
months
Multicap funds are relatively more market cap agnostic and hold
positions in a wider range of companies than pure large cap funds or
pure midcap/small cap funds. Multicap funds generally hold around 50-
60% of their portfolio in large cap stocks and 30-40% in midcap stocks.
They have benefited by capturing a part of the midcap rally during this
period and, thus, outperformed pure large cap funds
In the present market scenario, bottom up stock picking across the
market segment is more important than allocation to a particular
segment or sub sector. Multicap funds offer fund managers flexibility to
allocate funds across all market segment and are, therefore, relatively
better placed
Exhibit 8: Blistering AUM growth across all equity diversified fund sub-categories from 2014
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
Nov 12
Nov 13
Nov 14
Nov 15
Nov 16
Nov 17
|crs
Large Caps Multi Caps Mid Caps
Source: ACE MF
Recommended funds
Large cap
Birla Sunlife Frontline Equity
ICICI Prudential Focused Bluechip Equity
SBI Bluechip Fund
Multi cap
Franklin India Prima Plus Fund
Kotak Select Focus Fund
Motilal Oswal MOSt Focused Multicap 35 Fund
Midcap
HDFC Mid-Cap Opportunities Fund
Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund
(Refer to www.icicidirect.com for details of the fund)
View
Short term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 7
Equity infrastructure funds
The government recently announced its historic road building
programme to construct 83677 km of roads over the next five years at a
total outlay of | 6.92 lakh crore. This also includes phase 1 of
Bharatmala project, which includes construction of 34800 km of roads
at an investment of | 5.35 lakh crore in the next five years. Government
spending and focused push towards sectors such as roads, railways,
housing and power could lead to greater opportunities to infrastructure
players, apart from the benefit of increased transparency in the system
A number of infrastructure related government schemes and the
introduction of new regulatory measures are expected to help
organised players in the infrastructure space over the medium to long
term, placing infrastructure and ancillary stocks on an attractive footing
Preferred Picks
Aditya Birla SL Infrastructure Fund Refer
www.icicidirect.com for
details of the fund
L&T Infrastructure Fund
Reliance Diversified Power Sector Fund
Equity banking funds
There was some good news on the asset quality front as PSU banks
reported lower slippages in Q2FY18 than in the previous quarter.
Operating earnings of the banking system grew at a healthy rate of
12.2% YoY but higher provisions during the quarter impacted profits. A
key monitorable, going forward, would be the resolution of accounts
referred to NCLT in ensuing quarters. On the credit growth front,
incremental loan demand, going forward, is expected to arise from
capex revival against working capital and retail loans this past year
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 for the sector. Finer details about the
recapitalisation bonds are awaited. The continued government push on
financial inclusion, reduction in the black economy, enhanced
awareness and increased usage of digital or electronic payments will be
positives for the banking industry from an operating cost perspective
Preferred Picks
ICICI Prudential Banking & Financial Services Refer to
www.icicidirect.com for
details of the fund
Reliance Banking Fund
UTI Banking Sector Fund
Equity FMCG Funds
Several FMCG companies enjoyed strong volume growth on the back
of restocking by trade channels in Q2FY18. Most companies witnessed
strong pre-festive demand along with healthy rural growth spurred by
good monsoons. Many companies are aggressively focusing on digital
advertisement to reach larger audiences at a reduced spend
We maintain our positive outlook on the FMCG sector backed by the
rural consumption revival led by largely normal monsoons and the
government’s focus on increasing farm incomes. We also expect GST
implementation to eventually provide a big boost to FMCG companies,
particularly those present in personal care and household categories
Preferred Picks
ICICI Prudential FMCG Fund Referwww.icicidirect.com
for details of the fund SBI FMCG Fund
View
Short-term: Positive
Long-term: Positive
View
Short-term: Positive
Long-term: Positive
View
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 8
Equity Pharma funds
Pharmaceutical companies reported a muted Q2FY18 performance as
expected. Q1FY18 was also quite poor for the sector. Relief on the US
front is unlikely despite faster clearances for plants. A challenging
environment in the US outweighed domestic formulations recovery
post GST implementation. Leading players in the US market continue to
be bogged down by price erosion borne out of intense competition and
client consolidation. Pharma, being a largely export-oriented sector,
faces additional pressure from emergence of a stronger rupee
However, despite these apprehensions, in the long term, we remain
optimistic about the sector’s prospects on the back of attractive
valuations and earnings momentum pick-up led by incremental product
launches in the US besides normalising Indian formulations growth
Preferred Picks
Reliance Pharma Fund Refer to
www.icicidirect.com
for details of the fund
SBI Pharma Fund
UTI-Pharma & Healthcare
Equity Technology Funds
Technology companies reported muted results, as expected, with cross
currency tailwinds helping Tier-I IT companies post 2.8% sequentially
higher dollar revenue growth in Q2FY18. Subdued corporate results
demonstrate the shifting business environment in the technology
sector. Future expectations would be centred around management
guidance. In the short-term, rupee appreciation, increased local hiring
and demand for investments in digital would need monitoring, from a
margins perspective
We maintain our neutral stance on the sector as the industry faces
challenges related to US immigration rules and growing protectionism
around the world leading to marginal IT spending by companies. The
industry would continue to witness pricing pressure in its traditional
business, which is currently unable to offset newer revenue streams
from digital areas that enjoys higher margins
Preferred Picks
ICICI Prudential Technology Fund Refer to
www.icicidirect.com for
details of the fund
DSPBR Technology fund
View
Short-term: Neutral
Long-term: Neutral
View
Short-term: Neutral
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 9
Exchange Traded Funds (ETF)
In India, three kinds of ETFs are available: Equity index ETFs, liquid
ETFs and gold ETFs
An equity index ETF tracks a particular equity index such as the BSE
Sensex, NSE Nifty, Nifty Junior, etc
An equity index ETF scores higher than index funds on several grounds.
The expense of investing in ETFs is relatively less by 0.50-0.75% in
comparison to an index fund. The expense ratio for equity ETFs is in the
range of 0.05-0.25% while for index funds the expense ratio varies in
the range of 0.50-1.25%. However, brokerage (which varies) is
applicable on ETFs while there are no entry loads now on index funds
Tracking error, which explains extent of deviation of returns from the
underlying index, is usually low in ETFs as it tracks the equity index on
a real time basis whereas it is done only once in a day for index funds
ETFs also provide liquidity as they are traded on stock exchanges and
investors may subscribe or redeem them even on an intra-day basis.
This is unavailable in index funds, which are subscribed/redeemed only
on a closing NAV basis
In August 2015, the Labour Ministry decided to invest 5% of
Employees’ Provident Fund Organisation’s (EPFO) incremental corpus
in ETFs. The investment in equities is split between the Nifty ETF (75%)
and Sensex ETFs 25%. EPFO chose two ETF schemes of SBI Mutual
Fund — SBI ETF Nifty and SBI Sensex ETF
In 2016, the EPFO hiked the limit from 5% to 10% of its incremental
corpus of investment in equities, which was further increased to 15% of
its incremental corpus in May 2017. This is a positive move since
retirement savings, which are long term in nature, will be invested in
equities that have the potential to generate higher returns. So far, EPFO
has invested a total of ~| 22,000 crore in exchange traded funds as of
April 2017
Over 400 ETFs are traded globally. ETFs are transparent and cost
efficient. The decision on which ETF to buy should be largely governed
by the decision on getting exposure to that asset class
Exhibit 9: Sensex/Nifty ETFs receiving consistently higher inflows…
2830
4349
6748
930
3599
456 5841365
1753 15131968 1675
12447
-2000
0
2000
4000
6000
8000
10000
12000
14000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 10: …leading to consistent increase in AUM
25211
28834
37412
40147
44436
45899
47584
48359
52823
53734
55166
60107
70041
0
10000
20000
30000
40000
50000
60000
70000
80000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
| C
rore
Other ETFs
Source: AMFI, ICICIdirect.com Research
Traded volumes should be the major criterion that is used
while deciding on investment in ETFs. Higher volumes
ensure lower spread and better pricing to investors...
Tracking error, though it should be considered, is not the
deciding factor as variation among funds is not huge...
..traded volume should be the major criteria to be
considered while deciding on investment in ETFs.
Higher volumes ensure lower spread and better
pricing to investors...
..tracking error though should be considered but is
not the deciding factors as variation among funds
is not huge...
ICICI Securities Ltd. | Retail MF Research
Page 10
Balanced funds
The balanced funds category continued to receive significant flows,
with the average monthly inflow (net) for 12 months to November 2017
amounting to ~ | 6500 crore
The AUM of balanced funds has witnessed a stellar increase during this
period, more than doubling to | 155105 crore in November 2017 from
| 62907 crore in the year ago period
Over the last two or three years, the balanced space has emerged as
one of the fastest growing equity categories and offers an ideal gateway
for first time retail equity investors. In FY17, balanced funds AUM
growth outpaced all other categories bar non-gold ETFs
Balanced funds are hybrid funds. More than 65% of the overall portfolio
is invested in equities. Hence, as per provisions of the Income Tax Act,
1961, any capital gains over a year become tax free. Also, dividends
declared by funds are tax free in the hands of the investor
In case one separately invests 35% of one’s investible corpus in a debt
fund, the same will be subject to higher taxation. However, if the whole
corpus is invested in balanced funds, 100% shall have lower taxation
applicable as mentioned above. Thus, balanced funds offer the benefit
of equity taxation on debt component
After a sharp rally in equity markets, the funds can be a preferred
investment avenue as the debt proportion serves to protect on
intermediate relief rallies or the downturn while providing minimum
65% participation on further upsides
Exhibit 11: Inflows into balanced funds bounce back after some
moderation in the previous two months
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 12: YoY 147% growth in AUM of balanced funds
62907
64954
71021
77126
84763
93530
102156
109513
121243
128320
134868
147460
155105
13000
33000
53000
73000
93000
113000
133000
153000
173000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
| C
rore
Balanced
Source: AMFI, ICICIdirect.com Research
Preferred Picks
ICICI Prudential Balanced Fund
HDFC Balanced Fund
Birla Sun Life Balanced 95 Fund
DSP Blackrock Balanced Fund
L&T India Prudence Fund
(Refer to www.icicidirect.com for details of the fund)
Investors with a limited investible surplus and a lower risk
appetite but with a willingness to invest in equities can
look to invest in these funds
View
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 11
Monthly Income Plans (MIP)
An MIP offers investors the option to invest in debt with some
participation in equity, ~10-25% of the portfolio. They are suitable for
investors who seek higher returns from a debt portfolio and are
comfortable taking nominal risk. The debt corpus of the portfolio
provides regular income while the equity portion of the fund provides
alpha. However, returns can also get eroded by a fall in equities
MIPs can be classified into aggressive MIP and conservative MIP based
on its equity allocation. Risk averse investors should invest in MIPs with
lower equity allocation to avoid capital erosion
The change in taxation announced in the Union Budget 2014, shall be
applicable to MIP funds (refer debt funds section for details)
Preferred Picks
Aditya Birla Sun Life MIP II - Wealth 25 Plan
ICICI Prudential MIP 25
SBI Magnum MIP Fund
SBI Magnum MIP Floater Fund
(Refer www.icicidirect.com for details of the fund)
Arbitrage Funds
Arbitrage funds seek to exploit market inefficiencies that get manifested
as mispricing in the cash (stock) and derivative markets
Availability of arbitrage positions depends very much on the market
scenario. A directional movement in the broader index attracts
speculators in the market while cost of funding makes futures positions
biased
Arbitrage funds are classified as equity funds as they invest into equity
share and equity derivative instruments. Since these are classified as
equity funds for taxation, dividends declared by the funds are tax free.
No capital gains tax will be applicable if they are sold after a year
These funds can be looked upon as an alternative to liquid funds.
However, for these funds, returns totally depend on arbitrage
opportunities available at a particular point of time and investors should
consider reviewing the same before investing. Returns of arbitrage
funds are non-linear and, therefore, unsuitable for investors who want
consistent return across time period
Arbitrage funds should be used as a liquid investment and should not
be a major part of the investor’s portfolio. A range bound market does
not give ample room to create arbitrage positions
Preferred Picks
ICICI Prudential Equity - Arbitrage Fund – Regular
IDFC Arbitrage Fund - (Regular)
Kotak Equity Arbitrage Fund
SBI Arbitrage Opportunities Fund
(Refer to www.icicidirect.com for details of the fund)
View
Short-term: Neutral
Long-term: Positive
View
Short-term: Neutral
Long-term: Neutral
MIP should be a preferred debt investment for funds that
need to be parked for over two years
ICICI Securities Ltd. | Retail MF Research
Page 12
Debt funds
Exhibit 13: Category average returns
6.1
6.5
7.8
5.2 6
.2
8.0
6.2
6.2 7
.2
2.6
4.6
7.8
-0.4
3.3
8.2
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
6 months 1 year 3year
%
Gilt Funds Income LT Income ST Income UST Liquid
Source: ACE MF, ICICIdirect.com Research
Note : Returns as on December 18, 2017; All returns are compounded annualised
Exhibit 14: G-sec yield curve
6.14
6.59
6.88
7.05
6.28
6.62
6.99
7.20
6.0
6.2
6.4
6.6
6.8
7.0
7.2
1yr 3yr 5yr 10yr
Yie
ld (%
)
13-Dec-17 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
Exhibit 15: Corporate bond curve
6.99
7.307.33
7.90
7.03
7.40
7.57
7.96
6.4
6.8
7.2
7.6
8.0
1yr 3yr 5yr 10 yr
Yie
ld (%
)
13-Dec-17 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
Benchmark 10 year G-Sec has witnessed yields
hardening to 15 month highs in December
Interest rates moved up secularly 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, remain stable at lower
levels due to ample liquidity
In an uncertain environment, liquid funds remain well placed to park
money with low volatility
For less than a year, individuals in the higher tax bracket should opt for
dividend option as the dividend distribution tax @ 28.325% is
marginally lower. Also, though the tax arbitrage has reduced, they still
earn better pre-tax returns over bank savings (3-4%) and current
accounts (0-3%)
Changes in taxation rules announced in Union Budget 2014 are also
applicable to liquid funds, as post tax returns in less than a three-year
period get reduced for individuals in the higher tax bracket (30% tax
slab) and for corporate
Exhibit 16: Call rates below repo rate
5
5.4
5.8
6.2
6.6
7
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
%
Call rate
Source: Bloomberg, ICICIdirect.com Research
Exhibit 17: CP/CD yields
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
%
3M CD 3M CP
Source: Bloomberg, ICICIdirect.com Research
Exhibit 18: Flows into liquid funds remain volatile on institutional activity
1,350
26,943
10,541
8,227
-15,147
99,403
-64,692
-12,739
-19,511
21,352
4,833
-13,261
77,408
-200,000
-160,000
-120,000
-80,000
-40,000
0
40,000
80,000
120,000
160,000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Net Inflo
w ( | C
r )
Source: AMFI, ICICIdirect.com Research
Exhibit 19: AUM remains healthy
468668
469675
496696
520020
543541
568770
583557
591377
629456
643926
659182
707989
733166
300000
400000
500000
600000
700000
800000
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
| 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
Continued rise in crude oil prices, higher inflation data than expected
and fears of fiscal slippage helped drive benchmark 10-year G-Sec yield
towards 7.2% mark. November’s pick up in CPI inflation to a 15 month
high of 4.88% was above expectations. It followed consecutively higher
inflation readings from July to October. The December MPC policy
document outlined aspects such as persistence in core & fuel inflation,
HRA implementation by the central government and the uncertainty
surrounding fiscal discipline as some factors influencing its decision to
maintain status quo on rates. Food prices rose in November on the back
of a spike in vegetables and eggs while the percolation effects of HRA
implementation for government employees and crude-led spurts in the
fuel basket were also apparent. All segments constituting core inflation
also rose. The RBI marginally revised upwards its inflation projection for
H2FY18 by 10 bps to 4.3-4.7%
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
18,3
06
-33,1
82
28,5
88
10,8
64
-56,2
47
34,6
47
5,1
24
-20,6
85
60,0
84
8,3
90
-50,0
90
40,8
45
9,3
74
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
60,000
80,000
Nov-1
6
Jan-1
7
Mar-
17
May-1
7
Jul-17
Sep-1
7
Nov-1
7
Net In
flow
s
(| .
Cr)
Source: AMFI, ICICIdirect.com Research
Exhibit 21: AUM remains stable on consistent inflows
784305
748071
783778
794679
743783
780797
792734
778266
845484
858188
809965
855478
867736
400000
500000
600000
700000
800000
900000
Nov-1
6
Dec-1
6
Jan-1
7
Feb-1
7
Mar-
17
Apr-
17
May-1
7
Jun-1
7
Jul-17
Aug-1
7
Sep-1
7
Oct-
17
Nov-1
7
| C
rore
Income
Source: AMFI, ICICIdirect.com Research
Recommended funds
Ultra Short Term Funds
Birla Sun Life Savings Fund
ICICI Prudential Flexible income
Short Term Funds
Birla Sunlife short term fund
HDFC Short Term Fund
ICICI Pru Short Term Plan
Short Term Funds – Credit opportunities
Axis Regular Savings Fund
Aditya Birla Sunlife Medium Term Plan
L&T Short Term Fund
Long term/Dynamic
Birla Sunlife income plus
ICICI Prudential Dynamic Bond Fund
IDFC dynamic bond fund
(Refer www.icicidirect.com for details of the fund)
View
Ultra-short term: Neutral
Short-term: Positive
Long-term: Neutral
ICICI Securities Ltd. | Retail MF Research
Page 15
Gilt Funds
Yield on the benchmark 10-year government bond hardened
appreciably in early December towards the 7.2% mark, a 15 month
high. Soft inflation combined with strong institutional flows into debt
markets helped push down benchmark 10-year G-sec yield by ~45-50
points in May-July. The markets were not enthused by the widely
expected rate cut in August and lower-than-expected dovish RBI
commentary in October. A significant rebound in July-November CPI
readings was followed by a rise in yields by ~25 bps from ~6.50%
(early September) to 7.02% (December 13)
RBI held status quo on policy rates and maintained a neutral stance in
its December 6 policy meet as expected. November’s pick-up in CPI
inflation to a 15 month high of 4.88% was above expectations. It
followed consecutively higher inflation readings from July to October.
The December MPC policy document outlined aspects such as
persistence in core & fuel inflation, HRA implementation by the central
government and uncertainty surrounding fiscal discipline as some
factors influencing its decision to maintain status quo on rates. Food
prices rose in November on the back of a spike in vegetables and eggs
while the percolation effects of HRA implementation for government
employees and crude-led spurts in the fuel basket were also apparent.
All segments constituting core inflation also rose. The RBI marginally
revised upwards its inflation projection for H2FY18 by 10 bps to 4.3-
4.7%
Given how inflation seems to be edging higher post June driven by
higher fuel prices, GST, HRA implementation, unfavourable base effect
in vegetable prices and US Fed rate hike in December, there appears
quite limited scope for yields to soften. Allocation to pure G-sec or
duration funds should be avoided given their historical outperformance
and G-sec yields trading at the lower end of their historical range.
Historically, it has been observed that years of good returns in G-sec
are followed by lower returns
Exhibit 22: Historical trend in return from G-sec indicates, going forward, returns likely to be lower
-15
-10
-5
0
5
10
15
20
25
30
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017 YTD
Crisil 10 Yr Gilt Index
%
Source: ACE MF
Preferred Picks
Aditya Birla Sun Life Gilt Plus – PF Plan
ICICI Pru LT Gilt Fund – PF Option
(Refer to www.icicidirect.com for details of the fund)
Allocation to pure G-Sec or duration funds should be
avoided given their historical outperformance and G-sec
yield trading at the lower end of its historical range. Crisil
10-year Gilt index has delivered 38% return in the last
three years. It is likely the return will be significantly
decline, going forward
View
Short-term: Neutral
Long-term: Neutral
ICICI Securities Ltd. | Retail MF Research
Page 16
Gold: Outlook anchored to Fed movement
Global prices were rangebound in November and, thereafter, dropped
in the first two weeks of December. Starting from a base of ~US$1271
per ounce, prices remained within a narrow range of US$1275-1295 for
the month. They dipped lower towards ~US$1250 per ounce in mid-
December. The closing price of ~US$1262 per ounce on December 18
represents a ~9.5% YTD return
A sharp rupee appreciation in 2017 of ~5.8% against the US dollar has
curbed gains in domestic gold prices, limiting them to ~2.7% YTD as of
December 15
With geopolitical tensions on the backburner currently, Federal
Reserve’s movement on US interest rates has driven gold price outlook.
Earlier, the safe haven status of the yellow metal had sparked buying
interest as concerns surrounding North Korea escalated in August
The Fed hiked interest rates by 25 bps as expected in December. This
was the third hike in 2017 as per earlier outlined trajectory. US bond
yields and the US dollar both gained marginally in the days following
the hike decision. These movements could weigh on gold prices as the
metal is denominated in that currency (thus losing value when the
currency appreciates) and does not bear interest (thus suffering from a
higher opportunity cost)
US bond yields hardened towards the 2.4% mark in the run up to the
Fed meeting as expectations surrounding the rate hike gathered pace.
Additionally, the US Dollar Index rallied to three month highs in
October, impacting prices of the dollar denominated yellow metal
US inflation remains well below the targeted 2% mark but has seen a
marginal pick-up in recent months. Unemployment is at a multi-year
low. Three hikes are pencilled in for 2018 but decisions would be data
driven
Gold has historically been looked at as a relatively risk-free asset. Its
price movement both in India and globally, is impacted by any actual or
perceived risk build-up on economic, political or natural fronts
Exhibit 23: Gold prices dip in November
1100
1200
1300
1400
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Price ($/ounce)
Source: Bloomberg, ICICIdirect.com Research
Exhibit 24: Indian price rise more subdued on YTD basis
26000
28000
30000
32000
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-1
7
Oct-17
Nov-17
Dec-17
Price (|/10 grams)
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 17
Model Portfolios
Equity funds model portfolio
Investors who are wary of investing directly into equities can still get
returns almost as good as equity markets through the mutual fund route.
We have designed three mutual fund model portfolios, namely,
conservative, moderate and aggressive mutual fund portfolios. These
portfolios have been designed keeping in mind various key parameters like
investment horizon, investment objective, scheme ratings, and fund
management.
Exhibit 25: Equity model portfolio
Particulars Aggressive Moderate Conservative
Review Interval Monthly Monthly Quarterly
Risk Return High Risk- High
Return
Medium Risk -
Medium Return
Low Risk - Low
Return
Funds Allocation % Allocation
Franklin India Prima Plus 20 20 20
Birla Sunlife Frontline Equity - 20 20
ICICI Prudential Dynamic Plan - - 20
SBI Bluechip Fund 20 20 20
Kotak Select Focus Fund 20 20 -
HDFC Midcap Opportunities 20 10 -
Franklin India High Growth Companies Fund 20 - -
Birla SL Dynamic Bond Fund - 10 20
Total 100 100 100
Source: ICICIdirect.com Research
Exhibit 26: Model portfolio performance: One year performance (as on November 30, 2017)
26.2%
21.1%
18.9%
26.9%
12%
14%
16%
18%
20%
22%
24%
26%
28%
Aggressive Moderate Conservative BSE 100
%
Aggressive Moderate Conservative BSE 100
Source: Crisil Fund Analyser, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 18
Debt funds model portfolio
We have designed three different mutual fund model portfolios for different
investment duration viz. less than six months, six months to one year and
above one year. These portfolios have been designed keeping in mind
various key parameters like investment horizon, interest rate scenarios,
credit quality of the portfolio and fund management, etc.
Exhibit 27: Debt funds model portfolio
Particulars
0 – 6 months 6months - 1 Year Above 1 Year
Objective Liquidity
Liquidity with
moderate return Above FD
Review Interval Monthly Monthly Quarterly
Risk Return
Very Low Risk -
Nominal Return
Medium Risk -
Medium Return
Low Risk - High
Return
Funds Allocation
Ultra Short term Funds
Birla SL Savings Fund 20
ICICI Pru Flexible Income Plan 20
Short Term Debt Funds
Axis Regular Savings Fund 20
Birla Sunlife Short Term Fund 20 20
Birla Sunlife Short Term Opportunites Fund 20 20
Reliance Regular Savings Fund 20
HDFC Short Term Opportunities Fund 20 20
ICICI Prudential Regular Savings 20
ICICI Prudential Short Term Fund 20
IDFC SSI Short Term 20
UTI Short Term Income Fund 20
HDFC Corporate Debt opportunities fund 20
Total 100 100 100
Time Horizon
% Allocation
Source: ICICIdirect.com Research
Exhibit 32: Model portfolio performance: One year performance (as on November 30, 2017)
7.08
7.53
7.137.11
7.27
6.60
6.0
6.2
6.4
6.6
6.8
7.0
7.2
7.4
7.6
0-6 Months 6Months - 1Year Above 1yr
%
Portfolio Index
Source: Crisil Fund Analyser, ICICIdirect.com Research
*Index: 0-6 month’s portfolio – Crisil Liquid Fund Index; 6 months-1 year – Blended Index with 50% weight to Crisil
Liquid Index, 50% weight to Crisil Short Term Index; Above 1 year: Crisil Short Term Index
ICICI Securities Ltd. | Retail MF Research
Page 19
Top Picks
Exhibit 33: Category wise top picks
Largecaps Birla Sun life Frontline Equity Fund
ICICI Pru Focused Bluechip Fund
SBI Bluechip Fund
Midcaps HDFC Midcap Opportunities Fund
Franklin India Smaller Companies Fund
L&T Emerging Businesses Fund
Multicaps Franklin India Prima Plus Fund
Kotak Select Focus Fund
Motilal Oswal MOSt Focussed Multicap 35 Fund
ELSS Aditya Birla Tax Relief 96 Fund
Axis Long Term Equity Fund
Reliance Tax Saver Fund
Franklin India Taxshield
Balanced HDFC Balanced Fund
ICICI Pru Balanced Fund
Birla Sun Life Balanced 95 Fund
DSP Blackrock Balanced Fund
L&T India Prudence Fund
Liquid HDFC Cash Mgmnt Saving Plan
ICICI Pru Liquid Plan
Reliance Liquid Treasury Plan
Ultra Short term Birla Sunlife Savings Fund
ICICI Pru Flexible Income Plan
UTI Treasury Advantage Fund-Inst
Short term Birla SL Short term Fund
HDFC Medium Term opportunities Fund
Kotak Banking and PSU Debt Fund
Credit Opportunities Axis Regular Savings Fund
Birla Sun Life Medium Term Plan
L&T Short Term Income Fund
Income Funds ICICI Pru Income Fund
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 20
Pankaj Pandey Head – Research [email protected]
ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st
Floor, Akruti Trade Centre,
Road No. 7, MIDC,
Andheri (East)
Mumbai – 400 093
Disclaimer
ANALYST CERTIFICATION
We, Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect
our views about the subject issuer(s) or Funds. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
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.
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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.
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This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such
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described herein may or may not be eligible for subscription in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform
themselves of and to observe such restriction.