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
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)
ICICI Securities | Retail Research 3
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Monthly Report | Mutual Fund Review
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
ICICI Securities | Retail Research 4
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Monthly Report | Mutual Fund Review
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
ICICI Securities | Retail Research 5
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Monthly Report | Mutual Fund Review
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
ICICI Securities | Retail Research 6
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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
ICICI Securities | Retail Research 7
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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
ICICI Securities | Retail Research 8
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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
ICICI Securities | Retail Research 9
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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
Source: ICICI Direct Research
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
ICICI Securities | Retail Research 10
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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
Source: ICICI Direct Research
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
ICICI Securities | Retail Research 11
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Monthly Report | Mutual Fund Review
Mutual Fund Recommendation
Exhibit 19: Equity Oriented Funds
Source: ICICI Direct Research
Exhibit 20: Debt Funds
Source: ICICI Direct Research
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
ICICI Securities | Retail Research 12
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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, 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:
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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.