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Mutual FundReview

October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund October 20 2009 | Mutual Fund

November 19, 2009 | Mutual Fund Mutual Fund Review

May 20, 2015

ICICI Securities Ltd. | Retail MF Research

Note: Whenever, returns for the scheme are shown in the report, they are for the growth option of the scheme.

Mutual Fund Review

Equity Markets ....................................................................................... 2 Debt Markets.......................................................................................... 3 MF industry synopsis ............................................................................ 4 MF Category Analysis............................................................................ 5

Equity funds...................................................................................... 5

Equity diversified funds....................................................................... 6 Equity Infrastructure fund.................................................................... 7 Equity Banking Funds.......................................................................... 7 Equity FMCG........................................................................................ 8 Equity Pharma Funds .......................................................................... 8 Equity Technology Funds.................................................................... 9

Exchange Traded Funds (ETF) ....................................................... 10 Balanced funds ............................................................................... 11 Monthly Income Plans (MIP) .......................................................... 11 Arbitrage Funds .............................................................................. 12 Debt funds ...................................................................................... 13

Liquid Funds ...................................................................................... 14 Income funds..................................................................................... 15 Gilt Funds ........................................................................................ 16 Gold ETFs: Medium term outlook benign......................................... 17 Model Portfolios .................................................................................. 18

Equity funds model portfolio.......................................................... 18 Debt funds model portfolio ............................................................ 19

Top Picks.............................................................................................. 20

May 20, 2015


Page 2

Equity Markets Update

Indian equity markets were extremely volatile during April. They witnessed a sharp correction on lower-than-expected Q4 results, concerns over weak monsoons, uncertainty surrounding applicability of minimum alternative tax (MAT) on FIIs, a sharp rise in global commodity prices, particularly crude oil and weak global markets

Expectations in domestic markets were running high. Therefore, some profit was expected. However, the fall was aided by global weakness

The results declared so far continue to remain subdued with lower-than-expected results from IT, cement and a few of the PSU banks. However, private sector bank results announced so far have shown a healthy performance with reduced concerns over asset quality

Indian markets have been underperforming other global markets in the last few month after being among the best performing markets in 2014 as investors looked to book some profit

Overall, inflation continues to trend down with both latest CPI and WPI data prints coming in below market expectations. CPI April 2015 came in at 4.87% while WPI softened to -2.65%. Prices of vegetables have been declining in the last few months. The same coupled with a high base led food inflation to ease to 5.1%

The recent market correction has been led by a sell-off from FIIs, who sold off equities worth | 16000 crore in the recent correction, a change in the recent trend

Outlook

Although earnings growth may remain muted in the next couple of quarter, it is expected to improve significantly in FY17 and FY18 on the back of an improvement in sales growth, decline in interest rates and reduced input cost of commodities. The same may keep market sentiments upbeat

The structural medium to long term outlook for the Indian equity market remains positive on lower commodity prices, particularly crude oil, expectations of further rate cuts by the RBI and policy announcements by the government to spur investments and, consequently, overall growth

We believe price wise correction is approaching maturity as benchmarks have already corrected over 10% from recent life-time highs (30024, 9119) and are poised near the key medium-term value area of 27000-26300, 8185-8000, which is also the confluence of many technical support areas

We expect markets to remain in consolidation mode and undergo a base building process in the coming month while stock specific activity will dominate trade as the result season peters out

Long term investors should utilise the recent correction to start accumulating and put money systematically at current levels as well as on any sharp correction in the near future

CNX Nifty: Volatility increases in the last few months

6500

7000

7500

8000

8500

9000

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Source: Bloomberg, ICICIdirect.com Research

Negative returns across indices…

-3.9

-4.7 -4.9

-5.0

-6.4

-7.0-6.0-5.0-4.0-3.0-2.0-1.00.0

BSEMidcap

BSESensex

BSE 500 BSE 100 BSESmallCap

Retu

rn (%

)

Source: Bloomberg, ICICIdirect.com Research Returns : April 16, 2015– May 15, 2015

…Reality and Cap goods witness largest fall

-1.3

-2.5

-5.3 -4

.7

-4.7

-6.2

-6.8

-10.

3

-1.3

-7.2

-7.5

-7.5

-12

-10

-8

-6

-4

-2

0

Met

al

Auto

Bank

ing

Oil &

Gas

PSU

Sens

ex

FMCG

Con.

Dura IT

Heal

thca

re

Cap.

Good

s

Real

ity

Retu

rn (%

)

Source: Bloomberg, ICICIdirect.com Research Returns : April 16, 2015– May 15, 2015

Research Analyst

Sachin Jain [email protected] Sheetal Ashar [email protected]


Page 3

Debt Markets Update

Globally, debt markets witnessed a sharp sell-off last month as market sentiments turned sharply negative after comments from the US Federal Reserve Chair Janet Yellen warning of high valuations in both global debt as well as equity markets. A sharp rise in crude oil prices by more than 40% in the last three months from US$45/barrel to US$64/barrel also raised concerns over inflation and the impact on the global economy

The sharp fall in global debt market benchmark yields was also on the back of a sustained unprecedented rally in the last few years. German 10 year G-Sec yields, which rallied from 1.9% in January 2014 to 0.07% in April 2015, witnessed a correction to 0.6% in the last few days. Similar was the case with many other European nations

Indian bond yields were always under pressure as they touched 8% again on concerns over the impact of unseasonal rains and as rising concerns over below normal monsoons added to concerns on a sharp rise in crude oil prices and its impact on inflation. No further hike in the FII debt limit in government securities by the government also weighed on sentiments

Credit spreads, however, remain more stable while AAA spreads remain at around 50 bps

CPI inflation for March 2015 was at 5.17% with WPI at -2.3%. Both moderated faster-than-expected on easing food inflation. Markets had widely expected food inflation to inch up as a consequence of the crop damage caused by unseasonal rains. On the contrary, CFPI moderated from 6.8% to 6.1%, which also dragged the headline CPI lower. Going forward, we expect CPI to average close to 5% in FY16E partly on account of the base effect

Outlook

The interest rate outlook in the next year or two remains promising with expectations of a downward shift in system interest rates and the yield curve across duration. The RBI’s 4% CPI inflation target, progressive reform oriented government, extremely benign global interest rate environment, stable global commodities and stable currency will eventually allow RBI to resort to multiple rate cuts over the next one or two years

We remain positive on the Indian debt markets as it is well placed to benefit from the structural improvement in macroeconomic data and expect the positive undertone of the debt market to sustain, going forward

The recent sell-off in yields of government securities provide an investment opportunity for aggressive investors to add duration funds with a one or two year investment horizon

Credit opportunities funds remain better placed for stable returns and lower volatility

G-Sec yields turned volatile after having rallied significantly in the last one year

7.6

8.0

8.4

8.8

9.2

9.6

Apr-1

4M

ay-1

4M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Sep-

14Oc

t-14

Nov

-14

Dec-

14Ja

n-15

Feb-

15M

ar-1

5Ap

r-15

Yiel

d (%

)


Fiscal roadmap Fiscal Deficit as % of GDP TargetFY15 (Revised Estimates) 4.1FY16 3.9FY17 3.5FY18 3.0

Source: RBI, ICICIdirect.com Research

G-sec yield curve moves up

8.0 7.9 8.0 7.97.9

7.8 7.8 7.8

7.4

7.6

7.8

8.0

1yr 3yr 5yr 10yr

Yiel

d (%

)

15-May-15 16-Apr-15


Corporate bond yield curve flattish

8.58.5 8.6 8.5

8.4 8.3 8.38.4

8.2

8.3

8.4

8.5

8.6

1yr 3yr 5yr 10 yr

Yiel

d (%

)

15-May-15 16-Apr-15



Page 4

MF industry synopsis In April 2015, assets under management (AUM) grew 25% YoY to

| 1186364 crore with share of equity oriented funds at 29% from 20% in April 2014

Net inflows in MF schemes were to the tune of | 110569 crore in April 2015. Money market funds garnered | 101592 crore as compared to outflow of | 112810 crore in March 2015

Exhibit 1: Equity AUM pick-up pushes AUM growth

1011

102

9747

15

1006

452

1012

824

9594

15

1095

653

1090

309

1181

356

1202

196

1082

807

9453

21

1051

343

1186

364

15%16%

20%

32% 32%29%

31%

23%

27%31% 31% 31%

25%

0%

5%

10%

15%

20%

25%

30%

35%

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

0

200000

400000

600000

800000

1000000

1200000

1400000

Total AUM (RHS) Growth (YoY)

Source: AMFI, ICICIdirect.com Research Exhibit 2: Share of equity oriented funds at 29%

AUM

Equity, 345129, 29%

Balanced, 27015, 2%

Other ETFs, 8822, 1%

FOF(Overseas), 2491, 0%

Income, 514628, 44%

Money Market, 266722, 22%

Gilt, 14739, 1%

Gold ETFs , 6818, 1%

Source: AMFI, ICICIdirect.com Research

Exhibit 3: HDFC AMC maintain top position, Franklin Templeton record highest YoY growth

1616

34

1485

59

1371

24

1197

52

9275

1

7494

2

7044

4

5171

5

4137

8

3783

8

1129

63

1068

22

1035

42

8905

1

7423

3

6549

9

4540

4

4134

9

3307

9

3163

1

2500050000

75000100000

125000150000

175000200000

HDFC

MF

Ipru

MF

Relia

nce

MF

Birla

Sunl

ife M

F

UTI M

F

SBI M

F

Fran

klin

Tem

pelto

n

IDFC

MF

Kota

kM

ahin

dra

DSP

Blac

kRoc

k

| Cr

Mar- 15 Mar- 14

Exhibit 4: HDFC, ICICI Pru highest contributors to increase in AAUM

HDFC MF17%

Reliance MF12%

Ipru MF15%

Birla Sunlife MF11%UTI MF

7%

SBI MF3%

Franklin Tempelton MF

9%

Kotak Mahindra MF3%

DSP BlackRock MF2%

IDFC MF4%

Others17%



Page 5

MF Category Analysis

Equity funds Midcap funds have significantly outperformed large cap funds in the

last one year Among sector funds, pharma funds delivered highest returns in the last

one year Exhibit 5: Midcap clear winners (returns as on May 15, 2015)

58.8

58.4

35.4

34.2

26.2

25.7

25.3

22.8

33.2 35.1

24.3

20.5

22.2

22.2 24

.7

21.3

18.7 24

.1

13.5

6.1 12

.2

11.7 14

.3

24.3

0

10

20

30

40

50

60

70

Mid cap Pharma Diversified Infrastructure Large Cap Banking Technology FMCG

Retu

rns

(%)

1year 3 Year 5year

Source: Crisil Fund Analyser, ICICIdirect.com Research ; Returns over one year are compounded annualised returns

Exhibit 6: Inflow into equity funds at near record high levels

-1935-160

2022

7153

10845

5364

794656004963

665163245840

848110584

-4500-2500

-50015003500550075009500

1150013500

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)

Net inflow (Equity + ELSS)


Exhibit 7: Equity AUM soars led by record inflows and market rally

1911

97

1922

46

2172

34

2410

24

2516

30

2667

42

2803

97

2971

60

3146

84

3194

78

3409

36

3457

39

3451

39

3451

29

150000200000250000300000350000400000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

Equity +ELSS


Exhibit 8: \Deployment of equity funds

Allocation Banks Software Pharma Auto FinanceConsumer

Durables

Industrial Capital Goods

ConstructionIndustrial Products

Petroleum

| crore 74810 34100 27587 24544 22425 18221 15625 15239 14044 13472

% of total 20.7 9.4 7.6 6.8 6.2 5.0 4.3 4.2 3.9 3.7

Source: Sebi, ICICIdirect.com Research, Sector Classification (as per Amfi)

Midcap funds gained on multiple re-rating as sentiments improved on growth prospects post formation of the new stable government at the centre

Exposure to banks and finance stocks together account for the highest proportion with 21% of equity assets followed by technology and pharma


Page 6

Equity diversified funds

Equity diversified funds delivered healthy returns in the last one year. Midcap funds were outperformers with 59% one year average return followed by multicap funds with one year average return of 35% and then large caps with 26% return against BSE Sensex return of 14%

Indian equity markets were extremely volatile during April and May 2015. It witnessed a sharp correction on lower-than-expected Q4 results, concerns over weak monsoons, uncertainty surrounding applicability of minimum alternative tax (MAT) on FIIs, a sharp rise in global commodity prices, particularly crude oil and weak global markets

Although earnings growth may remain muted in the next couple of quarters, it is expected to improve significantly in FY17 and FY18. The same may keep market sentiments upbeat

The structural medium to long term outlook for Indian equity markets remains positive on lower commodity prices, particularly crude oil, expectations of further rate cuts by RBI and policy announcements by the government to spur investments and, consequently, overall growth

Volatility, however, in the near term is likely to increase on global cues, especially at current higher levels where the Sensex is trading at 16.6x FY16E EPS of | 1674 and 14x FY17E EPS of | 1972. Investors should avoid investing lumpsum amounts at current levels. However, any sharp correction should be utilised to accumulate following a buy on dips strategy

Caution is required in midcap and small cap mutual funds as they have significantly outperformed large caps in the current market rally since September 2013. Therefore, if the overall market volatility increases, midcap and small caps may underperform

Recommended funds Large cap

Axis Equity Birla Sunlife Frontline Equity ICICI Prudential Focused Bluechip Equity UTI Opportunities Fund

Diversified

Franklin India Prima Plus Fund ICICI Prudential Dynamic Plan Reliance Equity Opportunities

Midcap

HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund Franklin India Smaller Companies Fund SBI Magnum Global Fund

(Refer to www.icicidirect.com for details of the fund)

View Short term: Neutral Long-term: Positive


Page 7

Equity Infrastructure fund After a clear mandate, the government unveiled its 10-year agenda to

focus on infrastructure, especially in road & railways like the dedicated freight corridor (US$80 billion), Diamond Quadrilateral (Mumbai Ahmedabad bullet train preliminary cost pegged at | 65,000 crore) and Sagar Mala project (| 1 lakh crore project). This lends comfort there will be tangible opportunities in the long run for infrastructure players

Secondly, the government’s progress towards speeding up the decision making process towards low hanging fruits/stuck project worth | 25 lakh crore would not only lead to better execution but also improve the liquidity of various infrastructure projects

Also, increase in allocation to road sector & ports, rationalisation of capital tax gains regime for sponsors & tax pass through status for infrastructure investment trusts (InvITs) and establishment of National Investment and Infrastructure Fund (NIIF) with initial annual outflow of | 20,000 crore in the recent Union Budget would pave the way for greater opportunities for various infrastructure players

Thirdly, the dovish tone from the RBI towards interest rate would also lead to better liquidity and savings on interest outgo for infrastructure

Fourthly, with the RBI's recent action allowing banks to issue long term bonds for infrastructure with benefits such as relaxation of CRR & SLR norms and longer duration of bonds, we believe the pressure to fund infrastructure projects on developers would ease. Hence, cost of funds and strain on cash flow are likely to reduce, going ahead

While valuations for the infrastructure sector have moved from distressed to reasonable, we still see a significant scope for a re-rating of the sector

Infrastructure funds, therefore, can yield alpha over the next two to three years time horizon

Recommended funds

Franklin Build India Fund HDFC Infrastructure Fund ICICI Prudential Infrastructure Fund

Refer to www.icicidirect.com for

details of the fund

Equity Banking Funds In the last two or three quarters, excluding the recent fall in banking

stocks, private banks have performed better on the bourses compared to their PSU peers. Private banks have managed their asset quality and operational performance well despite the economy failing to provide much cheer. This is owing to their focus on the retail segment of the business, which has provided private banks with growth and healthy RoEs. PSU banks, on the other hand, continue to reel under asset quality pressure, thus impacting their P&L performance heavily

We believe that, going ahead, asset quality woes and, consequently,

growth concerns for PSU banks will continue for a bulk of FY16E. Hence, one should consider PSU bank stocks for at least a two-year horizon. Though private bank multiples have got re-rated upwards, a steady operational performance ahead should provide investors with healthy return opportunities for the next two or three years at the CMP. The expected turnaround in the economy, going ahead, should augur well for the banking sector, as a whole. Hence, we remain positive on the sector on a long term basis

View Short-term: Positive Long-term: Positive

View Short-term: Neutral Long-term: Positive

Recommended funds

ICICI Prudential Banking & Financial Services Reliance Banking Fund UTI Thematic - Banking Sector Fund


details of the fund


Page 8

Equity FMCG Volume growth for FMCG remained dismal as a recovery in urban

demand remained slows. Simultaneously, rural demand has also been impacted due to unseasonal rains. With the aggressive price cuts by FMCG companies, sales growth is expected to remain muted. However, considering the sharp decline in commodity prices, most companies would continue to witness a 100-300 bps improvement in operating margins along with an increase in A&P spend over the next few quarters

With the expected implementation of GST by FY17E, the sector would be the biggest beneficiary

Recommended funds

ICICI Prudential FMCG Fund SBI FMCG Fund

Refer to www.icicidirect.com

for details of the fund

Equity Pharma Funds

Strong visibility on the back of a good product basket and a reasonable base business growth continue to attract buying interest in the pharma sector despite premium valuations

US and Indian formulations remain the main growth drivers for the sector on the back of a strong pipeline and incremental product launches. Healthy operating margins, relatively low leverage and strong return ratios are some of the other attributes for most pharma players

Recommended funds

Reliance Pharma Fund SBI Pharma Fund UTI-Pharma & Healthcare

Refer to www.icicidirect.com

for details of the fund


View Short-term: Neutral Long-term: Neutral


Page 9

Equity Technology Funds

Tier-I IT companies reported weak Q4FY15 earnings as constant currency revenues grew 1.3% QoQ vs. 3.8% in Q3 and 1.7% in Q4FY14. Company specific headwinds (select verticals and clients) coupled with cross currency headwinds dragged overall revenue growth. However, the management commentary on FY16E growth was upbeat led by healthy deal signings and order backlog

Operationally, Europe continues to see demand uptick in cost-optimisation deals while discretionary spending remains healthy in the US. Insurance, telecom and oil & gas verticals are structurally challenged and seeing a reduction in capex and discretionary spends

Upsides could be in line with earnings upgrades given blended valuations are at ~15.5x FY17E. However, sharp sell-offs should be used to accumulate given longer-term growth prospects

Recommended funds

ICICI Prudential Technology Fund DSPBR Technology fund


details of the fund



Page 10

Exchange Traded Funds (ETF) In India, three kinds of ETFs are available: Equity Index ETFs, liquid

ETFs and gold ETFs

An equity index ETF tracks a particular equity index such as the BSE Sensex, NSE Nifty, Nifty Junior, etc

An equity index ETF scores higher than index funds on several grounds. The expense of investing in ETFs is relatively less by 0.50-1.00% in comparison to an index fund. The expense ratio for ETFs is in the range of 0.50-0.75% excluding brokerage while for index funds the expense ratio varies in the range of 1.0-1.5%. However, brokerage (which varies) is applicable on ETFs while there are no entry loads now on index funds

The tracking error, which explains the 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

There are over 400 ETFs 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 in that asset class

Volumes are higher only in the Goldman Sachs Benchmark ETFs and tracking error is also lowest at 0.01%. Therefore, it is our top pick for investors wanting Nifty-linked returns

CPSE ETF is a new entry in the Goldman Sachs ETF offering. The ETF invests in selective 10 PSU stocks and has been listed on the exchange since April. It has delivered healthy 45% return since its launch. Also, bonus units at the end of the year will also provide additional benefit

Exhibit 9: CPSE ETF leads higher inflows

3087

-1213

576

-133

211 51

-439

429 492773

128

752 623

-579-1500-1000

-5000

500100015002000250030003500

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)


Exhibit 10: AUM also sees jump

4528

3704 48

29

5048

5083

5239

4737 54

65 5997 67

02

7056 77

95

8060

7404

0

2000

4000

6000

8000

10000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

Other ETFs


Traded volumes should be the major criterion that is used while deciding on investment in ETFs. Higher volumes ensure lower spread and better pricing to investors...

Tracking error, though it should be considered, is not the deciding factor as variation among funds is not huge...


Page 11

Balanced funds 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 one year become tax free. Also, dividends declared by funds are tax free

In case you separately invest 35% of your 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

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 65% participation on further upsides

Exhibit 11: Strong inflow…

-402-108

732

20751789

12351491

1183

-83

185

348 448879

835

-1000

-500

0

500

1000

1500

2000

2500

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)


Exhibit 12: …leads to AUM growth

1679

3

1337

0

1472

8

1591

4

1621

7

1729

3

1827

7 2108

0

2276

9

2449

0

2579

2

2650

7

2636

8

2701

5

13000

18000

23000

28000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

Balanced


Recommended funds

ICICI Prudential Balanced - Advantage Fund

HDFC Balanced Fund

Tata Balanced Fund


Monthly Income Plans (MIP) An MIP offers investors an option to invest in debt with some

participation in equity, ~10-25% of the portfolio. They are suitable for investors who seek higher return 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 to debt funds section for details)

Recommended funds

Birla Sun Life MIP II - Savings 5 Plan

ICICI Prudential MIP 25

DSPBR MIP Fund


Investors with a limited investible surplus and a lower risk appetite but with a willingness to invest in equities can look to invest in these funds

View Short-term: Positive Long-term: Neutral


MIP should be a preferred debt investment for funds that need to be parked for over two years


Page 12

Arbitrage Funds Arbitrage funds seek to exploit market inefficiencies that get manifested

as mispricing in the cash (stock) and derivative markets

Availability of arbitrage positions depends very much on the market scenario. A directional movement in the broader index attracts speculators in the market and 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 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

Availability of arbitrage positions depends very much on the market scenario. Directional movement in the broader index attracts speculators in the market while cost of funding makes future positions biased

In case of positive movement, long build-up in futures puts pricing in an upward bias and creates a window for direct arbitrage positions

On the other hand, negative bias attracts fresh sellers in the market and speculators try to sell the stock much cheaper than theoretical prices. In such situations, reverse arbitrage opportunities arise

On the other hand, a range bound market does not give ample room to create arbitrage positions

Recommended funds

ICICI Prudential Equity - Arbitrage Fund – Regular IDFC Arbitrage Fund - (Regular) Kotak Equity Arbitrage Fund SBI Arbitrage Opportunities Fund


View Short-term: Positive Long-term: Positive


Page 13

Debt funds Exhibit 13: Category average returns

8.2 8.7

8.8

8.6 9.

7

9.19.6

11.5

9.010

.1

12.6

9.1

8.3 8.6 8.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

6 months 1 year 3year%

Income UST Income ST Income LT Gilt Funds Liquid

Source: ACE MF, ICICIdirect.com Research Note : Returns as on May 15, 2015; Returns over one year are compounded annualised returns

Exhibit 14: Deployment of funds: April 2015

CP Bank CD

Bank CD

Bank CD

Corporate Debt

0

5000

0

1000

00

1500

00

2000

00

2500

00

3000

00

3500

00

4000

00

4500

00

Less than 90 days

90 days to 182days

182 days to 1 year

1 year and above

Government Securities

CP

Bank CD

Treasury Bills

CBLO

Other Money MarketInvestmentsCorporate Debt

PSU Bonds

Securitised Debt

Bank FD

Source: SEBI, ICICIdirect.com Research Note : Holding as percentage of total AUM

Exhibit 15: G-Sec yield curve

8.07.9

8.0 7.97.9

7.8 7.8 7.8

7.5

7.7

7.9

8.1

1yr 3yr 5yr 10yr

Yiel

d (%

)

15-May-15 16-Apr-15


Exhibit 16: Corporate bond curve

8.5

8.5 8.68.5

8.48.3 8.3

8.4

8.28.38.38.48.48.58.58.68.6

1yr 3yr 5yr 10 yr

Yiel

d (%

)

15-May-15 16-Apr-15


Short-term (credit opportunities) funds deliver better returns over a longer period and are more consistent performers while a drop in yields to 7.70% led gilt funds to outperform

Mutual fund investments into money market instrument increased. They were especially major lenders under the CBLO


Page 14

Liquid Funds Liquid fund returns moderated to 8.3-8.7% pre tax from over 9% earned

in the previous year The Reserve Bank’s pro-active liquidity management operations

ensured that Call rates stayed range bound around the policy rate (7.5%), reducing day-to-day volatility. The CBLO rates also hovered in the 8-7.5% range. With an improvement in liquidity conditions, the certificate of deposit and commercial paper rates in the three month bracket also eased by 80 bps to the 8.3-8.7% range from 9.1-9.3%. This led to a moderation in liquid fund returns

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, which may make them vulnerable to redemption pressures, as post tax returns in less than a three-year period get reduced for individuals falling in the higher tax bracket (30% tax slab) and corporate and returns may, to that extent, be lower

Exhibit 17: Call rates near repo rate

6

7

8

9

10

11

12

Apr-1

4M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Sep-

14Oc

t-14

Nov

-14

Dec-

14Ja

n-15

Feb-

15M

ar-1

5Ap

r-15

May

-15

%

Call rate


Exhibit 18: …CP/CD yields again increases

8.0

8.5

9.0

9.5

10.0

Apr-1

4M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Sep-

14Oc

t-14

Nov

-14

Dec-

14Ja

n-15

Feb-

15M

ar-1

5Ap

r-15

May

-15

%

3M CD 3M CP


Exhibit 19: Redemption may take place on increase in holding period

1238

75

2201

0

-676

97

25,5

89

-5,8

64

-67,

318

100,

611

-52,

460

-50,

786

85,8

48

101,

592

-117

354

8,78

4

-112

,810

-200000-160000-120000

-80000-40000

040000

80000120000160000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)


Exhibit 20: AUM increases in April

1332

80

2593

10

2827

00

2159

95

2442

20

2450

35

1845

25

2788

07

2281

49

1784

91

2653

58

2760

70

1625

62

2667

22

80000

130000

180000

230000

280000

330000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

Money Market


Recommended funds

HDFC Cash Management Fund - Savings Plan SBI Magnum InstaCash Reliance Liquid Fund - Treasury Plan


View Neutral


Page 15

Income funds In the income funds category, long term debt funds outperformed

delivering 12% absolute return in last one year (as on May 15, 2015)

We continue to remain positive on the Indian debt markets as they are well placed to benefit from a structural improvement in macroeconomic data and expect the positive undertone of the debt market to sustain

The corporate bond market segment continues to be attractive over the medium term, especially with expectations of an improvement in corporate profitability and an improved economic outlook. The credit opportunities funds are better placed due to stable returns and a change in taxation warranting a minimum holding period of three years to avail indexation benefits.

We prefer credit opportunities fund in the income funds category as a flat corporate bond curve offers an opportunity in the one to three year corporate bonds segment

The recent sell-off in yields of government securities provide an investment opportunity for aggressive investors to add duration funds with a one or two year investment horizon

Exhibit 21: Outflow indicates profit booking

-992

7

1009

6

1307

-10,

080

-12,

696

-10,

567

15,4

46 19,8

44

-1,6

32

12,1

63

-152

-8,9

27

-2,5

10

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

ws

(| .C

r)


Exhibit 22: AUM steady

4606

71

4580

09

4738

87

4789

82

4716

51

4611

14

4544

95

4759

68

5005

95

5021

54

5202

34

5223

66

5146

28

5157

73

300000350000400000450000500000550000

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

| Cr

ore

Income


Recommended funds

Ultra Short Term Funds Birla Sun Life Savings Fund Franklin India Ultra Short Term Bond Fund ICICI Prudential Flexible income

Short Term Funds Birla Sunlife short term fund HDFC Short Term Opportunities Fund ICICI Pru Short Term Plan

Short Term Funds – Credit opportunities Birla Sunlife Medium term Franklin India Short term Plan HDFC Corporate debt opportunities ICICI Prudential Regular Savings

Long term/Dynamic Birla Sunlife income plus ICICI Prudential Dynamic Bond Fund IDFC dynamic bond fund


View Ultra-short term: Positive

Short-term: Positive Long-term: Positive

Ultra-short-term fund returns are attractive on risk adjusted basis Short-term funds will benefit as the bond curve reverts to an upward slopping curve. Credit opportunities funds earn the highest accrual and are the best in the category Dynamic bond funds are suitable for all types of investors and for longer duration. They can take exposure to all durations as per the interest rate outlook and switch between G secs and corporate bonds


Page 16

Gilt Funds In April 2015, gilt funds delivered 13% absolute return in the last year,

the highest among debt funds. We believe the odds remain in favour of the government securities yield trending down over the next one or two years. However, gilt funds will be less attractive due to the longer holding period (more than three years) due to lower accrual income will neutralise the impact of moderate capital gains in the near term

The front loaded rate cuts by the RBI can push overall interest rates down depending on how soon banks transit it into the system by re-pricing their assets and liabilities lower

The central government has signed a memorandum with the RBI setting out a clear inflation objective to bring the inflation rate to the mid-point of the band of 4 +/- 2%. CPI, as per our assessment, should average close to 5% for FY16 (on assumption of normal monsoon and a stable currency).The government’s commitment towards controlling price shocks and steps taken to improve the supply chain are commendable. Also, global prices that have corrected sharply are supportive be they crude, metal or food prices. Hence, inflation should likely stay on the intended path. This creates room for the RBI to cut rates by another 25 bps to earn a real return of 2%

On the supply front, the Budget has pegged the market borrowing for FY16 at | 6 lakh crore on a gross basis and | 4.56 lakh crore on a net basis. Both gross and net market borrowings were close to market expectations. Borrowings related concern is expected to come down, given the government’s commitment towards reducing the fiscal deficit to 3% of GDP by FY17

Aggressive investor can invest in gilt funds with an investment horizon of one or two years

Recommended funds

Birla Sun Life Gilt Plus - PF Plan - Regular ICICI Prudential LT Gilt Fund - PF Option - Regular

(Refer to www.icicidirect.com for details of the fund) Exhibit 23: Outflows in Gilt funds in April indicates profit booking

-377

-373 -318 -211

110

-209

132 36

7

814

2090

1813 20

58

1439

164

-1000

-500

0

500

1000

1500

2000

2500

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)


View Short-term: Neutral Long-term: Neutral


Page 17

Gold ETFs: Medium term outlook benign Global gold prices traded in a narrow range in recent months despite

volatility in other asset classes. Global gold prices hovered around US$1200 per ounce during April 2015. However, it moved up in May towards US$1225 per ounce. Indian prices tracked global prices and were also range bound during April 2015 around | 26800 per 10 gram before inching up towards | 27500 per 10 gram

The investment demand for gold is largely governed by the broader economic climate. One of the major determinants of the investment demand is inflationary concerns. With a low global economic growth environment adding to deflationary pressure, inflationary demand factor for gold remains absent in the near term

Another major determinant for global gold prices is real interest rates. With the US Federal Reserve likely to raise interest rates, going forward, the opportunity cost of holding gold will increase while the same is likely to put pressure on gold prices from a medium-term perspective

Technically, after the multiyear bull phase during 2004-12, gold prices corrected significantly. The violation of the long term trend line highlights the breach of a decade long trend of outperformance. This breach of long term up trend support, signals a period of medium-term consolidation

Exhibit 24: International gold price benign…

1100

1150

1200

1250

1300

1350

1400

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Price ($/Ounce)

Source: Company, ICICIdirect.com Research

Exhibit 25: …domestic prices follows global trend

25000

26000

27000

28000

29000

30000

31000

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

May

-15

Price (|/10 grams)

Source: Company, ICICIdirect.com Research

Exhibit 26: Outflows for second year….

-149

-146

-341

-227

-105

-112

-47 -38 -32

-111

-131

-74

-111

-69

-400

-200

0

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Net

Inflo

w (

| Cr

)

Two years of outflow



Page 18

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. We have changed the mutual funds portfolio in July, to include midcap funds as we believe an improvement in the growth scenario may generate better alpha in midcap stocks over large cap stocks Exhibit 27: Equity model portfolio Particulars Aggressive Moderate ConservativeReview Interval Monthly Monthly QuarterlyRisk Return High Risk- High Return Medium Risk -

Medium ReturnLow Risk - Low Return

Funds Allocation % AllocationFranklin India Prima Plus 20 20 20Birla Sunlife Frontline Equity 20 20 20ICICI Prudential Dynamic Plan - - 20UTI Opportunites Fund - 20 20Reliance Long term Equity 20 - -ICICI Prudential Value Discovery 20 20 20HDFC Midcap Opportunities 20 20Grand Total(a+b) 100 100 100

Source: ICICIdirect.com Research

Exhibit 28: Model portfolio performance : FY15

48%45%

41%

28%

0%

10%

20%

30%

40%

50%

60%

Aggressive Moderate Conservative BSE 100

%

Aggressive Moderate Conservative BSE 100

Source: Crisil Fund Analyser, ICICIdirect.com Research Portfolio inception date : April 15, 2009


Page 19

Debt funds model portfolio We have designed three different mutual fund model portfolios for different investment duration namely 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 29: Debt funds model portfolio

Particulars

0 – 6 months 6months - 1 Year Above 1 Year

Objective LiquidityLiquidity with

moderate return Above FDReview Interval Monthly Monthly Quarterly

Risk ReturnVery Low Risk - Nominal Return

Medium Risk - Medium Return

Low Risk - High Return

Funds AllocationUltra Short term FundsBirla SL Savings Fund 20Franklin India Ultra Short Bond Fund 20ICICI Pru Flexible Income Plan 20Short Term Debt FundsBirla Sunlife Medium Term Plan 20Birla Sunlife Short Term Fund 20 20Birla Sunlife Short Term Opportunites Fund 20Franklin India Short Term Income Fund 20HDFC Medium Term Opportunities Fund 20HDFC Short Term Opportunities Fund 20 20ICICI Prudential Regular Savings 20ICICI Prudential Short Term Fund 20IDFC SSI Short TermSundaram Select Debt 20UTI Short Term FundLong Term/Dynamic Debt FundsIDFC Dynamic Bond fund 20Total 100 100 100

Time Horizon

% Allocation

Source: ICICIdirect.com Research

Exhibit 30: Model portfolio performance : FY15

9.1710.19

11.72

8.6610.12

14.25

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

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

%

Portfolio Index

Source: Crisil Fund Analyser, , ICICIdirect.com Research

*Index: 0-6 month’s portfolio – Crisil Liquid Fund Index; 6 months-1 year – Crisil Short term Index Above 1 year: Crisil Composite Bond Index


Page 20

Top Picks Exhibit 31: Category wise top picks

Category Top Picks

Largecaps Axis Equity Fund

Birla Sunlife Frontline equity Fund

ICICI Pru Focussed Bluechip Equity Fund

UTI Opportunities Fund

Midcaps HDFC Midcap Opportunities Fund

ICICI Prudential Value Discovery Fund

Franklin India Smaller Companies Fund

SBI Magnum Global Fund

Diversified Franklin India Prima Plus

ICICI Prudential Dynamic Plan

Reliance Equity Opportunities

ELSS Axis Long Term Equity

ICICI Prudential Tax Plan

Franklin India Tax shield

Liquid Funds HDFC Cash Mgmnt Saving Plan

ICIC Pru Liquid Plan

Reliance Liquid Treasury PlanUltra Short Term Birla Sunlife Savings Fund

Franklin India Ultra Short Term Bond Fund

ICICI Pru Flexible Income Plan

Short Term Birla Sunlife Short Term FundHDFC Short Term Opportunities Fund

ICICI Pru Short Term Plan

Credit Opportunities Fund Birla Sunlife Medium Term Plan

Franklin India Short term Plan

ICICI Prudential Regular Savings

Income Funds ICICI Prudenti Dynamic Bond Fund

Birla Sun Life Income Plus - Regular Plan

IDFC Dynamic Bond Fund

Gilts Funds ICICI Pru Gilt Inv. PF Plan

Birla Sunlife Gilt Plus

MIP Birla Sunlife Savings 5

ICICI Prudential MIP 25

DSP Blackrock MIP

Debt

Equity

(Refer www.icicidirect.com for details of the fund)


Page 21

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 ICICI Securities Ltd. - AMFI Regn. No.: ARN-0845. Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, 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 same should also not be considered as solicitation of offer to buy or sell these securities/units. 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 securities/units forming part of the indicative portfolio, the investor has the discretion to deselect any of the securities/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 securities 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 securities/units included in the indicative portfolio from time to time. 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. 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.

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 Sheetal Ashar, 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. Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India. ICICI Securities is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock broking and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, distribution of financial products etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading distributors of Mutual Funds and participate in distribution of Mutual Fund Schemes of almost all AMCs in India. The selection of the Mutual Funds for the purpose of including in the indicative portfolio does not in any way constitute any recommendation by ICICI Securities Limited (hereinafter referred to as ICICI Securities) with respect to the prospects or performance of these Mutual Funds. The investor has the discretion to buy all or any of the Mutual Fund units forming part of any of the indicative portfolios on icicidirect.com. Before placing an order to buy the funds forming part of the indicative portfolio, the investor has the discretion to deselect any of the units, which he does not wish to buy. Nothing in the indicative portfolio constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the investor's specific circumstances. The details included in the indicative portfolio are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The funds included in the indicative portfolio may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs. This may not be taken in substitution for the exercise of independent judgement by any investor. The investor should independently evaluate the investment risks. ICICI Securities and affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this indicative portfolio. Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. ICICI Securities may be holding all or any of the units included in the indicative portfolio from time to time as part of our treasury management. ICICI Securities Limited is not providing the service of Portfolio Management Services (Discretionary or Non Discretionary) to its clients. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Kindly note that such research recommended funds in indicative portfolio are not based on individual risk profile of each customer unless a customer has opted for a paid Investment Advisory Service offered by I-Sec. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any 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

Documents

Mutual Fund Review - ICICI Directcontent.icicidirect.com › mailimages › IDirect_Monthly... · Mutual Fund Review ... 10 year G-Sec yields, which rallied from 1.9% in January 2014