Mutual Fund Review December 21, 2017
Mutual Fund Review
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
Note: Whenever, returns for the scheme are shown in the report, they are for the growth option of the scheme.
ICICI Securities Ltd. | Retail MF Research
Equity Markets Nifty 50: Markets remain near all-time highs
Update
10500
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 1530%. 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
10000
9500 9000
8500 8000 Dec-17
Oct-17
Nov-17
Sep-17
Jul-17
Aug-17
Jun-17
Apr-17
May-17
Feb-17 Mar-17
Jan-17
Dec-16
7500
Source: Bloomberg, ICICIdirect.com Research
3.7
Smallcap, midcap indices remain outperformer
0.8
2
1.3
1.4
3
1.0
2.6
4
1
Sensex
BSE 100
BSE 200
BSE 500
BSE Midcap
BSE Small cap
0
Source: Bloomberg One month returns till November 15, 2017
1
1
2
3
3
3
6 4 2
4
Real estate, capital goods bounce back, healthcare, metals drag
-1
-4 -6
-1
0 -2
Outlook
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
Banking
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
Metals
Real Estate
Research Analyst
CG
Relative unattractiveness of other asset classes is likely to continue to attract inflows into equity market
IT
FMCG
Source: Bloomberg One month returns till November 15, 2017
GST implementation, demonetisation impact and the medium term benefit of both these events is likely to be witnessed, going forward
Healthcare
Auto
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
Oil n Gas
Sachin Jain
[email protected] Jaimin Desai
[email protected]
ICICI Securities Ltd. | Retail MF Research
Page 2
Debt Markets
G-sec yields break above 7% after 14 months
Update
Yield (%)
7.6
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
7.2 6.8 6.4 Dec-17
Oct-17
Aug-17
Jun-17
Apr-17
Feb-17
Dec-16
6.0
Source: Bloomberg
Yield (%)
G-sec yield curve: Yields steepen across maturities 7.2 7.0 6.8 6.6 6.4 6.2 6.0
7.20
6.99 6.62
6.28
7.05 6.88
6.59
6.14 1yr
3yr
5yr
13-Dec-17
10yr 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
AAA corporate bond yield curve steepens across maturities 8.0
7.57
Yield (%)
7.6
7.40
7.2
7.03
6.8
6.99
7.30
7.96 7.90
7.33
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
6.4 1yr
3yr
13-Dec-17
5yr
10 yr
14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 3
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 equityoriented funds, of which | 12447 crore was in ETFs, aided by Bharat 22 ETF issue
90,099
77,486 Axis
Franklin
AUM
Kotak
Total AUM
UTI
50000
SBI
Nov-17
Oct-17
Sep-17
Jul-17
Aug-17
Jun-17
May-17
Apr-17
Feb-17
Mar-17
Jan-17
Dec-16
Nov-16
100000
DSP
102,579
150000
124,358
200000
156,446
206,522
250000
243,758
300000
247,201
350000
Aditya Birla
2400000 2200000 2000000 1800000 1600000 1400000 1200000 1000000
Exhibit 2: AUM of Top 10 AMCs
Reliance
Exhibit 1: Equity, equity-oriented funds receiving ~|20,000 crore per month on average, thus far in FY18…
289,786
HDFC
304,940
ICICI
Source: AMFI
Source: ACE MF
Exhibit 3: Franklin Templeton has highest proportion of equity AUM as percentage of its AUM, SBI a close second
Exhibit 4: Within retail category, equity funds witness significant inflows in FY17…
Source: ACE MF. Data as of October 2017
ICICI Securities Ltd. | Retail MF Research
GILT
GOLD ETFs
Aditya Birla
Kotak
UTI
Reliance
Axis
Others%
ELSS - EQUITY
Debt%
OTHER ETFs
Equity %
DSP
ICICI
HDFC
SBI
Franklin
0%
FY16
BALANCED
20%
58000 52000 46000 40000 34000 28000 22000 16000 10000 4000 -2000
EQUITY
30%
32%
34%
34%
35%
39%
40%
39%
43%
47%
60%
48%
80%
Source: ACE MF. Data as on March 2017
Page 4
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
3.5
10
15.0
15.5
6.2
18.0
29.7
13.7 18.0 Multi cap
11.1 14.9
11.6 13.4
Mid cap Infrastructure Banking
15.2 16.8
20
19.1 25.1
30
15.2 15.4
Returns (%)
40
32.8
36.9
39.9
50
41.0
45.0
Exhibit 5: FMCG funds outperform other categories on a one year basis with pharma funds still under pressure (returns as on December 18, 2017)
-2.1
0 -10 FMCG
1 year
3 Year
Large Cap Technology
Pharma
5 year
S
Source: Crisil, ICICIdirect.com Research ; Returns over one year are compounded annualised returns
Exhibit 7: Robust inflow in equity funds push up AUM to cross | 7 lakh crore
22000 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0
800000 750000 700000
| lakh Crore
650000 600000 550000 500000
Equity +ELSS
Source: AMFI, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Source: AMFI, ICICIdirect.com Research
Page 5
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
350000
Dec-16
Nov-17
Oct-17
Sep-17
400000
Nov-16
Equity + ELSS
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
450000 Nov-16
Net Inflow ( | Cr )
Exhibit 6: Strong inflows continue into equity and ELSS schemes
Equity diversified funds View Short term: Positive Long-term: Positive
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 5060% 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
Large Caps
Multi Caps
Nov 17
Nov 16
Nov 15
Nov 14
Nov 13
200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Nov 12
| crs
Exhibit 8: Blistering AUM growth across all equity diversified fund sub-categories from 2014
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)
ICICI Securities Ltd. | Retail MF Research
Page 6
Equity infrastructure funds View Short-term: Positive Long-term: Positive
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
View Short-term: Positive Long-term: Positive
Aditya Birla SL Infrastructure Fund L&T Infrastructure Fund Reliance Diversified Power Sector Fund
Refer www.icicidirect.com for details of the 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 Reliance Banking Fund UTI Banking Sector Fund
Refer to www.icicidirect.com for details of the fund
Equity FMCG Funds View Short-term: Positive Long-term: Positive
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 Securities Ltd. | Retail MF Research
ICICI Prudential FMCG Fund SBI FMCG Fund
Referwww.icicidirect.com for details of the fund
Page 7
Equity Pharma funds View Short-term: Neutral Long-term: Positive
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 SBI Pharma Fund UTI-Pharma & Healthcare
Refer to www.icicidirect.com for details of the fund
Equity Technology Funds View Short-term: Neutral Long-term: Neutral
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 Securities Ltd. | Retail MF Research
ICICI Prudential Technology Fund DSPBR Technology fund
Refer to www.icicidirect.com for details of the fund
Page 8
Exchange Traded Funds (ETF)
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
70041 Nov-17
60107
55166
Oct-17
48359 Jun-17
Sep-17
47584 May-17
53734
45899 Apr-17
Aug-17
44436 Mar-17
52823
40147 Feb-17
Jul-17
37412 Jan-17
28834 Dec-16
80000 70000 60000 50000 40000 30000 20000 10000 0
25211
Exhibit 10: …leading to consistent increase in AUM
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
14000 12447 12000 10000 6748 8000 6000 4349 3599 4000 2830 1365 1753 1513 1968 1675 930 2000 456 584 0 -2000 Nov-16
Net Inflow ( | Cr )
Exhibit 9: Sensex/Nifty ETFs receiving consistently higher inflows…
Nov-16
Tracking error, though it should be considered, is not the deciding factor as variation among funds is not huge...
In India, three kinds of ETFs are available: Equity index ETFs, liquid ETFs and gold ETFs
| Crore
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...
Other ETFs
Source: AMFI, ICICIdirect.com Research Source: AMFI, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Page 9
Balanced funds
147460
155105
134868 Sep-17
Oct-17
128320 Aug-17
Nov-17
121243
109513 Jun-17
Jul-17
102156
93530 Apr-17
May-17
173000 153000 133000 113000 93000 73000 53000 33000 13000
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Nov-16
| Crore
Net Inflow ( | Cr )
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
84763
Exhibit 12: YoY 147% growth in AUM of balanced funds
Mar-17
Exhibit 11: Inflows into balanced funds bounce back after some moderation in the previous two months
77126
71021
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
Feb-17
Jan-17
64954
62907
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
Dec-16
Nov-16
View Short-term: Positive Long-term: Positive
Balanced
Source: AMFI, ICICIdirect.com Research 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)
ICICI Securities Ltd. | Retail MF Research
Page 10
Monthly Income Plans (MIP) View Short-term: Neutral Long-term: Positive
MIP should be a preferred debt investment for funds that need to be parked for over two years
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 View Short-term: Neutral Long-term: Neutral
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)
ICICI Securities Ltd. | Retail MF Research
Page 11
Debt funds Exhibit 13: Category average returns 14.0
4.0
7.8
7.2
8.0
4.6
6.2
6.2
6.2 3.3
2.6
6.0
6.2
5.2
%
8.0
6.2
10.0
7.2
8.2
12.0
Benchmark 10 year G-Sec has witnessed yields hardening to 15 month highs in December
2.0 0.0 6 months
-0.4
-2.0
1 year
Gilt Funds
Income LT
Income ST
3year
Income UST
Liquid
Source: ACE MF, ICICIdirect.com Research Note : Returns as on December 18, 2017; All returns are compounded annualised
7.2 7.0 6.8 6.6 6.4 6.2 6.0
Exhibit 15: Corporate bond curve
6.99 6.62
6.28
7.05 6.88
6.59
6.14 1yr
7.96
7.57
7.6
7.40
7.2
7.03
6.8
6.99
7.30
7.90
7.33
6.4 3yr 13-Dec-17
5yr
10yr 14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
8.0
7.20 Yield (%)
Interest rates moved up secularly across G-Sec and corporate bond categories
Yield (%)
Exhibit 14: G-sec yield curve
1yr
3yr
13-Dec-17
5yr
10 yr
14-Nov-17
Source: Bloomberg, ICICIdirect.com Research
Page 12
Liquid Funds
View Neutral
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
Exhibit 17: CP/CD yields
7 6.6
%
%
6.2 5.8 5.4
8.0 7.5 7.0 6.5 6.0 5.5 5.0
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
5
3M CD
Call rate
3M CP
Source: Bloomberg, ICICIdirect.com Research
Source: Bloomberg, ICICIdirect.com Research
707989
733166 Nov-17
659182 Sep-17
Oct-17
643926 Aug-17
591377 Jun-17
629456
583557 May-17
Jul-17
568770
543541
520020
469675 Dec-16
496696
468668 Nov-16
| lakh Crore
500000
Apr-17
77,408
600000
-13,261
-19,511
-12,739
-64,692
700000
4,833
21,352
99,403 -15,147
Exhibit 19: AUM remains healthy 800000
8,227
26,943
10,541
1,350
400000
Mar-17
Feb-17
Jan-17
Nov-17
Oct-17
Sep-17
Jul-17
Aug-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
300000
Dec-16
160,000 120,000 80,000 40,000 0 -40,000 -80,000 -120,000 -160,000 -200,000
Nov-16
Net Inflow ( | Cr )
Exhibit 18: Flows into liquid funds remain volatile on institutional activity
Money Market
Source: AMFI, ICICIdirect.com Research 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)
ICICI Securities Ltd. | Retail MF Research
Page 13
Income funds
View Ultra-short term: Neutral Short-term: Positive Long-term: Neutral
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
855478
867736 Nov-17
809965
Oct-17
Sep-17
Jun-17
858188
792734
778266
May-17
845484
780797
794679 Feb-17
743783
783778 Jan-17
Apr-17
748071 Dec-16
Mar-17
784305 Nov-16
900000 800000 700000 600000 500000 400000
Nov-17
Sep-17
Jul-17
May-17
Mar-17
Jan-17
Nov-16
-80,000
| Crore
8,390 -50,090
-60,000
9,374
40,845
60,084
-56,247
-33,182
-40,000
-20,685
0
-20,000
5,124
20,000
10,864
28,588
18,306
Net Inflows (| .Cr)
40,000
34,647
60,000
Jul-17
Exhibit 21: AUM remains stable on consistent inflows
80,000
Aug-17
Exhibit 20: Income funds inflows
Income
Source: AMFI, ICICIdirect.com Research 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)
ICICI Securities Ltd. | Retail MF Research
Page 14
View Short-term: Neutral Long-term: Neutral
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 4.34.7%
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
2016
2015
2017 YTD
Crisil 10 Yr Gilt Index
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
30 25 20 15 10 %5 0 -5 -10 -15 2002
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
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)
ICICI Securities Ltd. | Retail MF Research
Page 15
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 midDecember. The closing price of ~US$1262 per ounce on December 18 represents a ~9.5% YTD return
A sharp rupee appreciation in 2017 of ~5.8% against the US dollar has curbed gains in domestic gold prices, limiting them to ~2.7% YTD as of December 15
With geopolitical tensions on the backburner currently, Federal Reserve’s movement on US interest rates has driven gold price outlook. Earlier, the safe haven status of the yellow metal had sparked buying interest as concerns surrounding North Korea escalated in August
The Fed hiked interest rates by 25 bps as expected in December. This was the third hike in 2017 as per earlier outlined trajectory. US bond yields and the US dollar both gained marginally in the days following the hike decision. These movements could weigh on gold prices as the metal is denominated in that currency (thus losing value when the currency appreciates) and does not bear interest (thus suffering from a higher opportunity cost)
US bond yields hardened towards the 2.4% mark in the run up to the Fed meeting as expectations surrounding the rate hike gathered pace. Additionally, the US Dollar Index rallied to three month highs in October, impacting prices of the dollar denominated yellow metal
US inflation remains well below the targeted 2% mark but has seen a marginal pick-up in recent months. Unemployment is at a multi-year low. Three hikes are pencilled in for 2018 but decisions would be data driven
Gold has historically been looked at as a relatively risk-free asset. Its price movement both in India and globally, is impacted by any actual or perceived risk build-up on economic, political or natural fronts
Exhibit 23: Gold prices dip in November
Exhibit 24: Indian price rise more subdued on YTD basis
1400
32000
1300
30000
1200
28000
Price (|/10 grams)
Price ($/ounce)
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail MF Research
Source: Bloomberg, ICICIdirect.com Research
Page 16
Dec-17
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-17
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Dec-16
26000
1100
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 Review Interval Risk Return
Aggressive Monthly High Risk- High Return % Allocation 20 20 20 20 20 100
Funds Allocation Franklin India Prima Plus Birla Sunlife Frontline Equity ICICI Prudential Dynamic Plan SBI Bluechip Fund Kotak Select Focus Fund HDFC Midcap Opportunities Franklin India High Growth Companies Fund Birla SL Dynamic Bond Fund Total
Moderate Monthly Medium Risk Medium Return
Conservative Quarterly Low Risk - Low Return
20 20 20 20 10 10 100
20 20 20 20 20 100
Source: ICICIdirect.com Research
Exhibit 26: Model portfolio performance: One year performance (as on November 30, 2017) Aggressive 28%
Moderate
Conservative
26.2%
BSE 100 26.9%
26% 24%
21.1%
%
22%
18.9%
20% 18% 16%
14% 12%
Aggressive
Moderate
Conservative
BSE 100
Source: Crisil Fund Analyser, ICICIdirect.com Research
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 27: Debt funds model portfolio Particulars
Time Horizon 0 – 6 months
Objective Review Interval
Liquidity Monthly Very Low Risk Nominal Return
Risk Return Funds Allocation Ultra Short term Funds Birla SL Savings Fund ICICI Pru Flexible Income Plan Short Term Debt Funds Axis Regular Savings Fund Birla Sunlife Short Term Fund Birla Sunlife Short Term Opportunites Fund Reliance Regular Savings Fund HDFC Short Term Opportunities Fund ICICI Prudential Regular Savings ICICI Prudential Short Term Fund IDFC SSI Short Term UTI Short Term Income Fund HDFC Corporate Debt opportunities fund Total
6months - 1 Year Liquidity with moderate return Monthly Medium Risk Medium Return
Above 1 Year Above FD Quarterly Low Risk - High Return
% Allocation 20 20 20 20
20 20
20
20 20
20 20 20
20 20 100
20 100
100
Source: ICICIdirect.com Research
Exhibit 32: Model portfolio performance: One year performance (as on November 30, 2017) 7.53
7.6 7.4 7.2
7.27 7.08
7.11
7.13
%
7.0 6.8
6.60
6.6 6.4
6.2 6.0 0-6 Months
6Months - 1Year Portfolio
Above 1yr
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 18
Top Picks Exhibit 33: Category wise top picks Equity Funds & Equity-oriented Funds 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 Debt Funds & Debt-oriented Funds
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
(Refer www.icicidirect.com for details of the fund)
ICICI Securities Ltd. | Retail MF Research
Page 19
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
[email protected] Disclaimer
ANALYST CERTIFICATION
We, Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or Funds. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) AMFI Regn. No.: ARN-0845. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990.Registered office of ISec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate,Mumbai - 400020, India. ICICI Securities is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock broking and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, distribution of financial products etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading distributors of Mutual Funds and participate in distribution of Mutual Fund Schemes of almost all AMCs in India. The selection of the Mutual Funds for the purpose of including in the indicative portfolio does not in any way constitute any recommendation by ICICI Securities Limited (hereinafter referred to as ICICI Securities) with respect to the prospects or performance of these Mutual Funds. The investor has the discretion to buy all or any of the Mutual Fund units forming part of any of the indicative portfolios on icicidirect.com. Before placing an order to buy the funds forming part of the indicative portfolio, the investor has the discretion to deselect any of the units, which he does not wish to buy. Nothing in the indicative portfolio constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific circumstances. The details included in the indicative portfolio are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The funds included in the indicative portfolio may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs. This may not be taken in substitution for the exercise of independent judgement by any investor. The investor should independently evaluate the investment risks. ICICI Securities and affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this indicative portfolio. Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. ICICI Securities may be holding all or any of the units included in the indicative portfolio from time to time as part of our treasury management. ICICI Securities Limited is not providing the service of Portfolio Management Services (Discretionary or Non Discretionary) to its clients. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Kindly note that such research recommended funds in indicative portfolio are not based on individual risk profile of each customer unless a customer has opted for a paid Investment Advisory Service offered by I-Sec. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. The contents of this mail are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in preparing this mail, I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon. This mail/report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction. ICICI Securities and/or its associates receive compensation/ commission for distribution of Mutual Funds from various Asset Management Companies (AMCs). ICICI Securities host the details of the commission rates earned by ICICI Securities from Mutual Fund houses on our website www.icicidirect.com. Hence, ICICI Securities or its associates may have received compensation from AMCs whose funds are mentioned in the report during the period preceding twelve months from the date of this report for distribution of Mutual Funds or for providing marketing advertising support to these AMCs. ICICI Securities also provides stock broking services to institutional clients including AMCs. Hence, ICICI Securities may have received brokerage for security transactions done by any of the above AMCs during the period preceding twelve months from the date of this report. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the AMCs whose funds are mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report. It is confirmed that Sachin Jain, CA, and Jaimin Desai, CA, Research Analysts of this report have not received any compensation from the Mutual Funds house whose funds are mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or is associates may be holding all or any of the units included in the indicative portfolio from time to time as part of our treasury management. Hence, ICICI Securities or its associates may own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the research report. Research Analysts or their relatives of this report do not own 1% or more of the units of the Mutual Funds mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies/ AMCs including the AMCs whose funds are mentioned in this report or may have invested in the funds mentioned in this report . ICICI Securities also distributes Mutual Fund Schemes of ICICI Prudential Asset Management Company which is an ICICI Group Company, scheme details of which might also be appearing in the report above. However, the transactions are executed at Client's sole discretion and Clients make their own investment decisions, based on their own investment objectives, financial positions and needs.. It is confirmed that Sachin Jain, Research Analysts do not serve as an officer, director or employee of the AMCs whose funds mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies/funds mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The funds described herein may or may not be eligible for subscription in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
ICICI Securities Ltd. | Retail MF Research
Page 20