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Mutual FundReview
October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund
November 19, 2009 | Mutual Fund Mutual Fund Review 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
ICICI Securities Ltd. | Retail MF Research
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
Jaimin Desai
ICICI Securities Ltd. | Retail MF Research
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
ICICI Securities Ltd. | Retail MF Research
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
ICICI Securities Ltd. | Retail MF Research
Page 5
MF Category Analysis
Equity funds
Technology funds remained the best performing category of sector
funds. This category, along with FMCG 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
Source: Amfi, ICICI Direct Research
ICICI Securities Ltd. | Retail MF Research
Page 6
Equity diversified funds
Equity diversified funds witnessed robust growth in the last three
years, with AUM within each sub-category rising substantially. In
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
ICICI Securities Ltd. | Retail MF Research
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
ICICI Securities Ltd. | Retail MF Research
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
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 9
Exchange Traded Funds (ETF)
In India, three kinds of ETFs are available: Equity index ETFs, liquid
ETFs and gold ETFs. An equity index ETF tracks a particular equity
index such as the BSE Sensex, NSE Nifty, Nifty Junior, etc.
An equity index ETF scores higher than index funds on several grounds.
The expense of investing in ETFs is relatively less by 0.50-0.75% in
comparison to an index fund. The expense ratio for equity ETFs is in the
range of 0.05-0.25% while for index funds the expense ratio varies in
the range of 0.50-1.25%. However, brokerage (which varies) is
applicable on ETFs while there are no entry loads now on index funds.
Tracking error, which explains extent of deviation of returns from the
underlying index, is usually low in ETFs as it tracks the equity index on
a real time basis whereas it is done only once in a day for index funds.
ETFs also provide liquidity as they are traded on stock exchanges and
investors may subscribe or redeem them even on an intra-day basis.
This is unavailable in index funds, which are subscribed/redeemed only
on a closing NAV basis.
In August 2015, the Labour Ministry decided to invest 5% of
Employees’ Provident Fund Organisation’s (EPFO) incremental corpus
in ETFs. The investment in equities is split between the Nifty ETF (75%)
and Sensex ETFs (25%). EPFO chose two ETF schemes of SBI Mutual
Fund — SBI ETF Nifty and SBI Sensex ETF
In 2016, EPFO hiked the limit from 5% to 10% of its incremental corpus
of investment in equities, which was further increased to 15% of its
incremental corpus in May 2017. This is a positive move since
retirement savings, which are long term in nature, will be invested in
equities that have the potential to generate higher returns. So far, EPFO
has invested a total of ~| 22,000 crore in exchange traded funds as of
April 2017. Over 400 ETFs are traded globally. ETFs are transparent and
cost efficient. The decision on which ETF to buy should be largely
governed by the decision on getting exposure to that asset class
Exhibit 9: ETFs 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 )
Source: Amfi, ICICI Direct Research
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
Source: Amfi, ICICI Direct Research
Traded volumes should be the major criterion that is used
while deciding on investment in ETFs. Higher volumes
ensure lower spread and better pricing to investors...
Tracking error, though it should be considered, is not the
deciding factor as variation among funds is not huge...
..traded volume should be the major criteria to be
considered while deciding on investment in ETFs.
Higher volumes ensure lower spread and better
pricing to investors...
..tracking error though should be considered but is
not the deciding factors as variation among funds
is not huge...
ICICI Securities Ltd. | Retail MF Research
Page 10
Balanced funds
The balanced funds category continued to receive significant flows,
with average net monthly inflow in 2017 of ~ | 7000 crore. 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 )
Source: Amfi, ICICI Direct Research
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
Source: Amfi, ICICI Direct Research
Preferred Picks
ICICI Prudential Balanced Fund
HDFC Balanced Fund
DSP Blackrock Balanced Fund
Reliance Equity Hybrid Fund
(Refer to www.icicidirect.com for details of the fund)
Investors with a limited investible surplus and a lower risk
appetite but with a willingness to invest in equities can
look to invest in these funds
View
Short-term: Positive
Long-term: Positive
ICICI Securities Ltd. | Retail MF Research
Page 11
Monthly Income Plans (MIP)
An MIP offers investors the option to invest in debt with some
participation in equity, ~10-25% of the portfolio. They are suitable
for investors who seek higher returns from a debt portfolio and are
comfortable taking nominal risk. The debt corpus of the portfolio
provides regular income while the equity portion of the fund
provides alpha. However, returns can also get eroded by a fall in
equities
MIPs can be classified into aggressive MIP and conservative MIP
based on its equity allocation. Risk averse investors should invest in
MIPs with lower equity allocation to avoid capital erosion
The change in taxation announced in the Union Budget 2014, shall
be applicable to MIP funds (refer debt funds section for details)
Preferred Picks
Aditya Birla Sun Life MIP II - Wealth 25 Plan
ICICI Prudential MIP 25
SBI Magnum MIP Fund
SBI Magnum MIP Floater Fund
(Refer www.icicidirect.com for details of the fund)
Arbitrage Funds
Arbitrage funds seek to exploit market inefficiencies that get
manifested as mispricing in the cash (stock) and derivative markets
Availability of arbitrage positions depends very much on the market
scenario. A directional movement in the broader index attracts
speculators in the market while cost of funding makes futures
positions biased
Arbitrage funds are classified as equity funds as they invest into
equity share and equity derivative instruments. Since these are
classified as equity funds for taxation, dividends declared by the
funds are taxed at 10%. Capital gains tax will be applicable at 10% if
they are sold after a year
These funds can be looked upon as an alternative to liquid funds.
However, for these funds, returns totally depend on arbitrage
opportunities available at a particular point of time and investors
should consider reviewing the same before investing. Returns of
arbitrage funds are non-linear and, therefore, unsuitable for
investors who want consistent return across time period
Arbitrage funds should be used as a liquid investment and should
not be a major part of the investor’s portfolio. A range bound
market does not give ample room to create arbitrage positions
Preferred Picks
ICICI Prudential Equity - Arbitrage Fund – Regular
IDFC Arbitrage Fund - (Regular)
Kotak Equity Arbitrage Fund
SBI Arbitrage Opportunities Fund
(Refer to www.icicidirect.com for details of the fund)
View
Short-term: Neutral
Long-term: Positive
View
Short-term: Neutral
Long-term: Neutral
MIP should be a preferred debt investment for funds that
need to be parked for over two years
ICICI Securities Ltd. | Retail MF Research
Page 12
Debt funds
Exhibit 13: Category average returns
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
ICICI Securities Ltd. | Retail MF Research
Page 13
Liquid Funds
Yields on money market instruments viz. less than one year CDs
and CPs in which liquid fund predominantly invest, have spiked
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 )
Source: Amfi, ICICI Direct Research
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
Source: Amfi, ICICI Direct Research
Preferred Picks
HDFC Cash Management Fund - Savings Plan
SBI Magnum InstaCash
Reliance Liquid Fund - Treasury Plan
(Refer to www.icicidirect.com for details of the fund)
View
Neutral
ICICI Securities Ltd. | Retail MF Research
Page 14
Income funds and Gilt funds
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)
Source: Amfi, ICICI Direct Research
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
Source: Amfi, ICICI Direct Research
Recommended funds
Allocation to pure G-Sec or duration funds should be
avoided given their historical outperformance and G-sec
yield trading at the lower end of its historical range. Crisil
10-year Gilt index has delivered 38% return in the last
three years. It is likely the return will be significantly
decline, going forward
Ultra Short Term Funds
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
(Refer www.icicidirect.com for details of the fund)
View
Ultra-short term Income: Neutral
Short-term Income : Positive
Long-term Income: Neutral
Short-term Gilt : Neutral
Long –term Gilt : Neutral
ICICI Securities Ltd. | Retail MF Research
Page 15
Gold: Outlook anchored to Fed movement
Gold prices continued 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
ICICI Securities Ltd. | Retail MF Research
Page 16
Model Portfolios
Equity funds model portfolio
Investors who are wary of investing directly into equities can still get
returns almost as good as equity markets through the mutual fund route.
We have designed three mutual fund model portfolios, namely,
conservative, moderate and aggressive mutual fund portfolios. These
portfolios have been designed keeping in mind various key parameters like
investment horizon, investment objective, scheme ratings, and fund
management.
Exhibit 24: Equity model portfolio
Particulars Aggressive Moderate Conservative
Review Interval Monthly Monthly Quarterly
Risk Return High Risk- High
Return
Medium Risk -
Medium Return
Low Risk - Low
Return
Funds Allocation % Allocation
L&T India Value 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
Reliance Small Cap Fund
Moderate
Aditya Birla SL Advantage Fund
Conservative
Aditya Birla SL Advantage Fund
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.)
ICICI Securities Ltd. | Retail MF Research
Page 17
Debt funds model portfolio
We have designed three different mutual fund model portfolios for different
investment duration viz. less than six months, six months to one year and
above one year. These portfolios have been designed keeping in mind
various key parameters like investment horizon, interest rate scenarios,
credit quality of the portfolio and fund management, etc.
Exhibit 26: Debt funds model portfolio
Particulars
0 – 6 months 6months - 1 Year Above 1 Year
Objective Liquidity
Liquidity with
moderate return Above FD
Review Interval Monthly Monthly Quarterly
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.)
ICICI Securities Ltd. | Retail MF Research
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
Reliance Small Cap 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
(Refer www.icicidirect.com for details of the fund)
ICICI Securities Ltd. | Retail MF Research
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
Disclaimer
ANALYST CERTIFICATION
We, Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect
our views about the subject issuer(s) or Funds. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) AMFI Regn. No.: ARN-0845. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990.Registered office of I-
Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate,Mumbai - 400020, India. ICICI Securities is a full-service, integrated investment banking and is, inter alia, engaged in the
business of stock broking and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries
engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, distribution of financial products etc. (“associates”), the details in
respect of which are available on www.icicibank.com.
ICICI Securities is one of the leading distributors of Mutual Funds and participate in distribution of Mutual Fund Schemes of almost all AMCs in India.
The selection of the Mutual Funds for the purpose of including in the indicative portfolio does not in any way constitute any recommendation by ICICI Securities Limited (hereinafter referred to as ICICI
Securities) with respect to the prospects or performance of these Mutual Funds. The investor has the discretion to buy all or any of the Mutual Fund units forming part of any of the indicative portfolios
on icicidirect.com. Before placing an order to buy the funds forming part of the indicative portfolio, the investor has the discretion to deselect any of the units, which he does not wish to buy. Nothing in
the indicative portfolio constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific circumstances.
The details included in the indicative portfolio are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its
accuracy or completeness guaranteed. The funds included in the indicative portfolio may not be suitable for all investors, who must make their own investment decisions, based on their own
investment objectives, financial positions and needs.
This may not be taken in substitution for the exercise of independent judgement by any investor. The investor should independently evaluate the investment risks. ICICI Securities and affiliates accept
no liabilities for any loss or damage of any kind arising out of the use of this indicative portfolio.
Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. ICICI Securities may be holding all or any of the units included
in the indicative portfolio from time to time as part of our treasury management. ICICI Securities Limited is not providing the service of Portfolio Management Services (Discretionary or Non
Discretionary) to its clients.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Kindly note that such research recommended funds in indicative portfolio are not based on individual risk profile of each customer unless a customer has opted for a paid Investment Advisory Service
offered by I-Sec.
Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any
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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
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inform themselves of and to observe such restriction.