Mutual Fund Review - ICICI...

ICIC

I S

ecurit

ies –

Retail R

esearch

Monthly

Report

June 21, 2019

Mutual Fund Review

Equity Market

Update

Indian equity markets regained their previous all-time highs and continued

to make fresh all-time highs in the later part of May 2019 post the outcome

of the general election. Bulls got rejuvenated as the NDA government

surpassed and secured a higher number of seats and vote share compared

to market expectation and exit poll predictions.

The key positive takeaway is consistency in economic governance

framework for the next five years. Most importantly, a comfortable majority

also ensures no impediments of coalition pressures in case of tough

decisions for long term growth. Therefore, the attention shifts to areas of

focus for the next five years, which can be gauged in the manifesto of the

BJP. The broader takeaway is that the manifesto envisages inclusive growth

spanning infrastructure, rural/agri population, industries and basic

necessities such as housing and healthcare that could be catalysts for a

decade of robust economic growth ahead.

Overall growth targets have been anchored on areas such as agriculture

(doubling of farm income by 2022), infrastructure (focus on railway, road &

air connectivity), housing (pucca housing for every family by 2022),

manufacturing (industrial policy, ease of doing business, MSME boost) and

healthcare (building infrastructure and improving accessibility). The

abovementioned intent throws up a huge opportunity across sectors like

infrastructure, capital goods, cement, healthcare, agri product as well as

major pockets of consumption, going ahead.

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

run rate continuing to remain past | 8,000 crore. Domestic markets were

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

expectations over corporate earnings witnessing a high double digit

recovery in FY19-21E.

Outlook

Going ahead, we expect the dual theme of interest rate sensitive and

rural/consumption theme to take a front seat with increased spending of the

government. Among sectors, we remain positive on the consumption space

such as FMCG/consumer discretionary/two-wheelers, which would receive

a boost from demand pull both on government spending and owing to

interest rate relief. Furthermore, we like corporate banks (peaked out NPA

cycle, asset resolution), capital goods (strong execution & order inflows) and

commercial real estate players (listing of REITS). In general, we are negative

on the auto space and believe the best of volume growth is behind them and

are possible candidates for a de-rating. We are neutral on the metals, oil &

gas, telecom and pharmaceutical sectors.

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

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

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

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

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

equity investment.

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

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

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

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

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

any major correction in the near term.

Markets consolidating after scling new highs post

election results

Source: Bloomberg

Research Analyst

Sachin Jain

[email protected]

9000

9500

10000

10500

11000

11500

12000

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

ICICI Securities | Retail Research 2

ICICI Direct Research

Monthly Report | Mutual Fund Review

Industry Synopsis

The MF industry AUM rose 5.0% in May to ~| 25.9 lakh crore on the back

of inflows into liquid funds.

Credit risk funds continue to witness outflows for a second consecutive

month amid rising risk aversion as investors shied away from taking any

credit risk. Other category of funds like short term, low duration and medium

duration funds also witnessed outflows as few of the funds in these category

had some credit exposure, which led investors to shift out their money. The

corporate bond fund category is witnessing inflows due to a better credit

quality profile.

In the equity funds category, multicap funds witnessed highest inflows

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

outflows for a fourth consecutive month.

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

Source: ACE MF

Exhibit 2: Midcap, small cap funds witness highest inflows

during May 2019

Source: AMFI

Exhibit 3: Safer categories like banking & PSU funds,

overnight funds, corporate bond funds see inflows while

credit risk funds, low duration, medium duration category see

outflows

Source: AMFI

42%

38%

53%

34%

47%

43%

36% 40%

45%

27%

54%

54%

44%

60%

47% 5

1%

57%

54%

51

%

69%

4%

8%

3% 6

%

6%

5% 7%

6%

4%

4%

347190

330751

297350

250206

225419

157723

153185

125646

99168

78508

0

50000

100000

150000

200000

250000

300000

350000

400000

0%

20%

40%

60%

80%

HD

FC

ICIC

I

SB

I

Adit

ya B

irla

Reliance

UTI

Kotak

Franklin

Axis

IDFC

| c

rore

Equity % Debt% Others% AUM

Equity Oriented Category Inflow/(Outflow) during May 2019

Small Cap Fund 1,416

Mid Cap Fund 1,273

Focused Fund 1,200

Multi Cap Fund 648

ELSS 516

Balanced Advantage 341

Large & Mid Cap Fund 279

Sectoral/Thematic Funds 61

Large Cap Fund 53

Value Fund/Contra Fund (9)

Dividend Yield Fund (28)

Equity Savings (814)

Aggressive Hybrid Fund (2,481)

Debt Oriented Category Inflow/(Outflow) during May 2019

Liquid Fund 68,583

Money Market Fund 3,896

Banking and PSU Fund 3,382

Overnight Fund 2,347

Corporate Bond Fund 1,430

Ultra Short Duration Fund 1,191

Floater Fund 233

Long Duration Fund 90

Gilt Fund (45)

Gilt Fund with 10 year constant duration (61)

Medium to Long Duration Fund (387)

Dynamic Bond Fund (651)

Short Duration Fund (1,316)

Medium Duration Fund (2,063)

Low Duration Fund (2,353)

Credit Risk Fund (4,156)




Category Analysis

Equity Funds

Indian markets witnessed a turnaround in performance since March 2019.

After remaining subdued since the start of CY18, markets have regained

momentum since March 2019 and are back near all-time highs.

Sector rotation is being seen with banking, infrastructure funds significantly

outperforming in the recent uptrend. After the initial outperformance,

midcaps/small caps have been under pressure. The pharma sector

continues to underperform.

We have been recommending infrastructure and banking funds since the

start of CY19 as we believe that underperformance coupled with improved

earnings growth outlook over the next two years make it well positioned to

deliver a superior performance.

Exhibit 4: Banking, infrastructure funds outperform post general elections. After brief outperformance, midcap/small caps

under pressure

Source: CRISIL. Category average annualised returns as on June 19, 2019

Exhibit 5: Category wise asset under management

Source: AMFI

10.6

7.1

6.0

3.3

1.2

0.5

-0.2

-0.6

-2.1

-5.1

-6.3

17.0

12.1

11.2

11.8

11.2

10.9

11.4

9.5 1

0.7

8.6

-2.8

8.5

14.1

12.2

10.2

11.6

11.8

10.8

11.3

8.0

11.2

11.9

5.6

12.5

-10

-5

0

5

10

15

20

25

30

Bankin

g

Technolo

gy

Large C

ap

Focused

Large &

Mid

cap

Mult

i cap

ELS

S

Infr

astructure

Valu

e/C

ontra

Mid

cap

Pharm

a

Sm

all C

ap

Returns (

%)

1 year 3 Year 5 year

Equity Oriented Category AUM

Aggressive Hybrid Fund 146,885

Multi Cap Fund 144,264

Large Cap Fund 141,348

Balanced Advantage 94,997

ELSS 94,499

Mid Cap Fund 77,830

Sectoral/Thematic Funds 63,234

Value Fund/Contra Fund 59,090

Large & Mid Cap Fund 52,724

Small Cap Fund 46,442

Focused Fund 39,812

Equity Savings 18,141

Dividend Yield Fund 4,793




Equity Diversified funds

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

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

midcap and small cap stocks had significantly outperformed prior to the

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

good investment opportunity, particularly in a stable government

environment. Investors may consider investing lumpsum amount in

midcap/small cap funds from a long term perspective.

Multicap funds offer fund managers flexibility to allocate funds across all

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

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

investor’s equity allocation.

Exhibit 6: Multicap oriented funds remain largest category in terms of AUM

Source: ACE MF

Infrastructure funds – In focus

The re-election of the incumbent government with absolute majority

provides confidence in consistency in the economic governance framework

for the next five years.

The BJP’s manifesto envisages inclusive growth spanning infrastructure,

rural/agri population, industries and basic necessities such as housing and

healthcare that could be a catalyst for a decade of robust economic growth

ahead

The government has planned for overall infrastructure investment to the

tune of | 100 lakh crore by 2022, implying annual investment of | 20 lakh

crore. To meet this, we believe the government will have to step up

tendering & awarding activity exponentially from | 9.6 lakh crore & | 3.3 lakh

crore, respectively, in FY19. This could offer huge opportunities to EPC

players and could see a doubling of the order book from the current level

over the next three years

All these augur well for efficient and well managed companies operating in

infrastructure and allied activities. We believe the infrastructure sector may

outperform and lead the next market rally.

Investors may invest in infrastructure funds as part of their thematic

allocation with an investment horizon of more than two to three years.

256,077

141,348

77,830

46,442

-

50,000

100,000

150,000

200,000

250,000

300,000

Multi Caps (Multicap + Large & Midcap

+ Value/Contra)

Large Caps Mid Caps Small Caps

Recommended Funds

Sundaram Infra Advantage Fund

Tata Infrastructure Fund

UTI Infrastructure Fund




Exchange traded funds (ETFs)

Exhibit 7: ETF AUM rises significantly in last few years on

back of institutional money from EPFO into Sensex/Nifty ETF

Source: AMFI

Exhibit 8: Flows into ETFs remain volatile with May seeing

inflows after CPSE related outflows in April

Source: AMFI

Exhibit 9: Around 15 categories of ETFs available

Source: ACE MF

60000

80000

100000

120000

140000

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

| C

rore

Equity ETFs

2694

8313

-3982

178524092820

1634

10878

721

5234

10540

-4241

2432

-10000

-5000

0

5000

10000

15000

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Net Inflow

( |

Cr )

Equity ETFs

Nos. Types of ETFs Name of ETF

I Largecap oriented ETFs

1 Nifty 50 ETF Most AMCs

2 Sensex ETF Most AMCs

3 BSE 100 ETF SBI-ETF BSE 100

4 Nifty 100 ETF ICICI Pru Nifty 100 ETF

LIC MF ETF-Nifty 100

Reliance ETF Nifty 100

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

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

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

ICICI Pru Nifty Next 50 ETF

SBI-ETF Nifty Next 50

UTI-Nifty Next 50 ETF

8 Sensex Next 50 ETF SBI-ETF Sensex Next 50

UTI S&P BSE Sensex Next 50 ETF

9 NV 20 ETF ICICI Pru NV20 ETF

Kotak NV 20 ETF

Reliance ETF NV20

II Midcap Oriented ETFs

10 Midcap 100 ETF Motilal Oswal Midcap 100 ETF

11 Nifty Midcap 150 Reliance ETF Nifty Midcap 150

12 Midcap Select ETF ICICI Prudential Midcap Select ETF

III ETF in Multicap segment

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

IV ETFs based on sectors/Themes

14 Banking ETF Edelweiss ETF - Nifty Bank

Kotak Banking ETF

SBI-ETF Nifty Bank

15 PSU Bank ETF Kotak PSU Bank ETF

Reliance ETF PSU Bank BeES

ETFs, as a category, are gaining popularity. Apart

from Sensex or Nifty ETFs, many other equity

oriented ETFs are now available tracking various

indices across market cap and sectors




Hybrid funds

Inflows into aggressive hybrid funds have shown a consistent decline over

the last few months. May 2019 witnessed a fifth consecutive month of

outflow at | 2481 crore. The aggressive hybrid category has witnessed more

than | 10000 crore of outflow in the last five months since the start of

calendar year 2019.

Volatile equity markets resulted in negative returns for the category while

imposition of dividend distribution tax (DDT) on equity mutual funds in the

last Budget dampened investor sentiments considerably in balanced funds.

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

aggressive hybrid funds (erstwhile balanced funds) continue to be the

largest category, dynamic asset allocation funds have also grown

significantly in the last few years.

Exhibit 10: Aggressive hybrid funds continue to see outflows

for fifth consecutive month

Source: AMFI

Exhibit 11: Almost all hybrid funds category witness outflows

in April

Source: AMFI

Debt Funds

Exhibit 12: Fall in G-sec yields leads to duration/gilt funds outperforming in last six month. Credit funds average shift lower

due to negative return in few funds

Source: CRISIL. Category average annualised returns as on June 19, 2019

-4000

-2000

0

2000

4000

6000

8000

10000

May-17

Aug-17

Nov-17

Feb-18

May-18

Aug-18

Nov-18

Feb-19

May-19

Net Inflow

( |

Cr )

Balanced

Hybrid CategoryInflow/(Outflow) during

Mayl 2019

AUM

Balanced Hybrid Fund/Aggressive Hybrid Fund (2,481) 146,885

Dynamic Asset Allocation/Balanced Advantage 341 94,997

Arbitrage Fund 4,554 54,633

Equity Savings (814) 18,141

Conservative Hybrid Fund (316) 15,143

Multi Asset Allocation (19) 12,738

16.3

11.7

9.7

7.8

7.4 6.9

6.9

6.0

5.3

2.9

1.4

-1.2

-1.4

-4.1

14.8

12.9

9.3

7.3

8.8

8.5

6.9

6.1

5.5

5.1

3.9

1.9

3.0

1.5

9.5

8.4

7.6

7.0

6.7 7.0

6.8

6.0 6.5

6.1

5.6

5.4

5.7

5.1

-7

-2

3

8

13

18

Long D

uratio

n

Gilt F

unds

Bankin

g a

nd P

SU

Money M

arket

Mediu

m t

o L

ong D

uratio

n

Dynam

ic B

ond

Liq

uid

Overnig

ht

Ult

ra S

hort D

uratio

n

Short D

uratio

n

Corporate B

ond

Credit

Ris

k

Low

Duratio

n

Mediu

m D

uratio

n

Returns (

%)

6 months 1 year 3year




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

year)

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

relatively better investment opportunity.

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

park money temporarily compared to overnight or liquid fund categories.

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

of corporate bonds and commercial papers compared to overnight/liquid

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

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

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

quality perspective, particularly for conservative investors. However, the

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

categories.

Long term debt allocation (investment horizon of more than a

year)

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

relatively better investment opportunity based on risk profile of investors.

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

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

and credit risk categories due to higher credit quality.

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

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

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

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

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

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

years).

Categorisation of debt funds

Exhibit 13: Ultra short/low duration for short-term, corporate bond for long term

should in general be preferred category

Category Comment

Investment Horizon: Less than one year

Overnight funds Maturity up to 1 day

Liquid funds Maturity up to 91 days

Ultra short funds Maturity between 3-6 months

Low duration funds Maturity between 6-12 months

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

Investment Horizon: More than one year

Short duration Maturity between 1-3 years

Medium duration Maturity between 1-4 years

Medium to long duration Maturity between 4-7 years

Long duration Maturity of more than 7 years

Dynamic bond funds Across duration

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

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

Gilt funds G-Secs across maturity

Source: ICICI Direct Research

Ultra short term funds and low duration funds with

optimal mix of credit quality are better options to

invest for investment horizon of less than a year

Credit funds should be avoided in a current weak

credit environment. Corporate bond fund category is

best suited for long term debt allocation




Gold: Consolidation to continue…avoid for absolute return

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

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

global prices have been extremely range bound.

Gold prices have been trading range bound despite news flows surrounding

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

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

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

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

environment. The same should have supported higher gold prices as

interest rates have inverse correlation with gold prices.

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

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

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

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

some interest with the holding increasing.

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

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

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

ideal long term asset class.

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

prices corrected sharply and then underwent a long consolidation phase of

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

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

years.

Exhibit 14: Historical gold price performance extremely not linear

Source: Bloomberg

100

500

900

1300

1700

May-74

May-78

May-82

May-86

May-90

May-94

May-98

May-02

May-06

May-10

May-14

May-18

Global prices ($/ounce)

20 year long Consolidation

Consolidation underway

since last 5 years

Gold prices in the near term may find support due to

concerns on trade war and higher volatility in capital

markets. The medium term outlook, however,

remains benign given the rising global interest rate

trajectory and reducing monetary stimulus




Model Portfolio: Equity

Investors who are wary of investing directly into equities can still get returns

almost as good as equity markets through the mutual fund route. We have

designed three mutual fund model portfolios, viz. conservative, moderate

and aggressive mutual fund portfolios. These portfolios have been designed

keeping in mind various key parameters like investment horizon, investment

objective, scheme ratings, and fund management

Exhibit 15: Equity Model Portfolio


Exhibit 16: Model portfolio performance

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

Particulars Aggressive Moderate Conservative

Risk ReturnHigh Risk- High

Return

Medium Risk -

Medium Return

Low Risk - Low

Return

Funds Allocation

Mirae Asset Largecap Fund 20 20 20

HDFC Equity Fund - 20 20

Principal Emerging Bluechip Fund - 20 20

ICICI Prudential Midcap Fund 20 20 -

HDFC Smallcap Fund 20 20 -

Franklin India Focused Equity Fund 20 - -

L&T India Value Fund 20 - -

Reliance Largecap Fund - 20

IDFC Core Equity Fund - - 20

Total 100 100 100

% Allocation

16.6%

15.3% 15.2%14.4%

0.0%

5.0%

10.0%

15.0%

20.0%

Aggressive Moderate Conservative BSE 100 TRI

%

Aggressive Moderate Conservative BSE 100 TRI




Model Portfolio: Debt

Investors who are wary of investing directly into equities can still get returns

almost as good as equity markets through the mutual fund route. We have

designed three mutual fund model portfolios, viz. conservative, moderate

and aggressive mutual fund portfolios. These portfolios have been designed

keeping in mind various key parameters like investment horizon, investment

objective, scheme ratings, and fund management

Exhibit 17: Equity Model Portfolio


Exhibit 18: Model portfolio performance

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

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

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

Objective LiquidityLiquidity with

moderate return

Above FD

Funds Allocation

SBI Mag Ultra Short Duration 20 20

ICICI Pru Savings Plan 20

Kotak Savings Fund 20

HDFC Medium Term Fund 20 20

IDFC Low Duration Fund 20 20 20

IDFC Corporate Bond Fund 20 20

L&T Ultra Short Term Fund 20 20

HDFC Corporate Bond Fund 20

Aditya Birla SL Corporate Bond Fund 20

Total 100 100 100

% Allocation

8.1% 8.0%8.2%

7.6%7.8%

8.1%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

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

%

Portfolio Index




Mutual Fund Recommendation

Exhibit 19: Equity Oriented Funds


Exhibit 20: Debt Funds


Largecaps IDFC Large Cap Fund

Mirae Asset Largecap Fund

Reliance Large Cap Fund

Large and Midcaps IDFC Core Equity Fund

Principal Emerging Bluechip Fund

SBI Large and Midcap Fund

Multicaps HDFC Equity Fund

L&T India Equity Fund

UTI Equity Fund

Midcaps ICICI Prudential Midcap Fund

Kotak Emerging Equity Fund

L&T Midcap Fund

Smallcaps HDFC Small Cap Fund

L&T Emerging Businesses Fund

Reliance Small Cap Fund

Focused Franklin India Focused Equity Fund

ICICI Pru Focused Equity Fund

Reliance Focused Equity Fund

ELSS Aditya Birla Tax Relief 96 Fund

DSP Blackrock Tax Saver Fund

IDFC Tax Advantage Fund

Aggressive Hybrid HDFC Hybrid Equity Fund

ICICI Pru Equity & Debt Fund

Mirae Asset Hybrid Equity Fund

Category wise top picks

Category Fund Category Comment

Overnight / Liquid / Ultra Short Term Kotak Savings Fund Volatility - low

L&T Ultra Short Term Fund Investment horizon - 0-6m

SBI Magnum Ultra Short Duration Fund

Low Duration / Money Market ICICI Prudential Savings Fund Volatility - low

IDFC Low Duration Fund Investment horizon - 0-12m

SBI Low Duration Fund UTI Treasury Advantage Fund

Short Term HDFC Short Term Debt Fund Volatility - low

IDFC Bond Fund - Short Term Investment horizon - more than 1 year

L&T Short Term Bond Fund Credit risk - low

Medium Term HDFC Medium Term Debt Fund Volatility - medium

IDFC Bond Fund - Medium Term Plan Investment horizon - more than 1 year

SBI Magnum Medium Duration Fund Credit risk - medium

Medium to Long Term / Long Term Aditya Birla SL Income Fund Volatility - high

ICICI Pru Bond Fund Investment horizon - more than 1 year

Reliance Income Fund Credit risk - low

Dynamic Bond Fund ICICI Pru All Seasons Bond Fund Volatility - high

IDFC Dynamic Bond Fund Investment horizon - more than 1 year

Kotak Dynamic Bond Fund Credit risk - medium

Corporate Bond Aditya Birla SL Corporate Bond Fund Volatility - low

HDFC Corporate Bond Fund Investment horizon - more than 1 year

IDFC Corporate Bond Fund Credit risk - low

Credit Risk Axis Credit Risk Fund Volatility - medium

IDFC Credit Risk Fund Investment horizon - more than 1 year

SBI Credit Risk Fund Credit risk - high

Gilt IDFC G-Sec Fund - Investment Plan Volatility - high

Reliance Gilt Securities Fund Investment horizon - more than 1 year

UTI Gilt Fund Credit risk - low

Category wise top picks




Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No. 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]

Disclaimer

ANALYST CERTIFICATION

We, Sachin Jain, CA, Research Analyst, author and the name subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject

issuer(s) or Funds. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) AMFI Registration. No.: ARN-0845. Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India. ICICI

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

ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund

management, etc. (“associates”), the details in respect of which are available on www.icicibank.com.

ICICI Securities is one of the leading distributors of Mutual Funds and participate in distribution of Mutual Fund Schemes of almost all AMCs in India.

The selection of the Mutual Funds for the purpose of including in the indicative portfolio does not in any way constitute any recommendation by ICICI Securities Limited (hereinafter referred to as ICICI

Securities) with respect to the prospects or performance of these Mutual Funds. The investor has the discretion to buy all or any of the Mutual Fund units forming part of any of the indicative portfolios on

icicidirect.com. Before placing an order to buy the funds forming part of the indicative portfolio, the investor has the discretion to deselect any of the units, which he does not wish to buy. Nothing in the

indicative portfolio constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific circumstances.

The details included in the indicative portfolio are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy

or completeness guaranteed. The funds included in the indicative portfolio may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,

financial positions and needs.

This may not be taken in substitution for the exercise of independent judgement by any investor. The investor should independently evaluate the investment risks. ICICI Securities and affiliates accept no

liabilities for any loss or damage of any kind arising out of the use of this indicative portfolio.

Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. ICICI Securities may be holding all or any of the units included in

the indicative portfolio from time to time as part of our treasury management. ICICI Securities Limited is not providing the service of Portfolio Management Services (Discretionary or Non Discretionary) to

its clients.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Kindly note that such research recommended funds in indicative portfolio are not based on individual risk profile of each customer unless a customer has opted for a paid Investment Advisory Service offered

by I-Sec. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other

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

as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in preparing this mail, I-Sec and affiliates

accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon. This mail/report is not directed or intended

for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be

contrary to law, regulation or which would subject I-SEC and affiliates to any registration or licensing requirement within such jurisdiction.

ICICI Securities and/or its associates receive compensation/ commission for distribution of Mutual Funds from various Asset Management Companies (AMCs). ICICI Securities host the details of the

commission rates earned by ICICI Securities from Mutual Fund houses on our website www.icicidirect.com. Hence, ICICI Securities or its associates may have received compensation from AMCs whose

funds are mentioned in the report during the period preceding twelve months from the date of this report for distribution of Mutual Funds or for providing marketing advertising support to these AMCs. ICICI

Securities also provides stock broking services to institutional clients including AMCs. Hence, ICICI Securities may have received brokerage for security transactions done by any of the above AMCs during

the period preceding twelve months from the date of this report.

It is confirmed that Sachin Jain, CA, Research Analysts of this report have not received any compensation from the Mutual Funds house whose funds are mentioned in the report in the preceding twelve

months.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or is associates may be holding all or any of the units included in the indicative portfolio from time to time as part of our treasury management. Hence, ICICI Securities or its associates may

own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the research report.

Research Analysts or their relatives of this report do not own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the research

report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies/ AMCs including the AMCs whose

funds are mentioned in this report or may have invested in the funds mentioned in this report.

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