IPRU InsightsNewsletter Oct 2014

8/10/2019 IPRU InsightsNewsletter Oct 2014

1/18

Understanding whenand why asset classesperform is a homeworkdone well............................. Pg.3

Why chasing returnsis detrimental to yourportfolio............................. Pg.5

How to score morefinancial goals............................. Pg.7

IPRU

October 2014InsightsInsights


2/18

W e are pleased to present the issue ofour newsletter. It is designed to helpyou understand the finer nuances ofmutual funds, to assist you in becoming aninformed mutual fund investor and aim toget the advantage out of investing inmutual funds.

These are heartening times to be a mutualfund investor, and for me to be your AssetManagement Company CEO. The stockmarket has been posting gains everymonth since the beginning of this year, andfor all those investors who have stayedinvested, returns have been reasonable. Inthe past few months, some investors havebeen redeeming their holdings from equitymutual funds at a time when investorsshould ideally remain invested. Theeconomy is at the cusp of growth.

The 2014-15 Budget brought in no

unpleasant surprises for the markets. Infact, the budget seems to have met themarket expectations, as we witnessed thebroader indices giving thumbs up to thebudget. The budget 2014 is also likely tolook at many ways to boost economicgrowth and manufacturing activity in thecountry. The budget could pave the way toa healthier balance sheet of the countryand more investing opportunities forinvestors.

As opposed to so many of the economicsignposts coming in the recent past,

currently, the improving industrialproduction along with reducing inflationand current account deficit(CAD) suggeststhat the economy is on the way to recoveryfrom around the five per cent GrossDomestic Product (GDP) growth rate it hasbeen seeing in lately. Sure, there is a lot of

work still left and the recovery may begradual, but there is no doubt that theIndian economy can live up to its truegrowth potential in the coming years.

I have never doubted that the Indianeconomy can rebound sooner or later, andthat the Indian companies can deliver goodgrowth rates in the coming years. In fact,some time back the markets were sodeeply discounted that it presented one ofthe preferred opportunities for investors toget into equity as an asset class and bagsome good investments at discountedprices.

In fact, we launched a series of Value Fundsthat garnered an average AUM of ` 1671.3crore as on 30 June 2014 from newinvestors. We are encouraged by theinvestor response when we believedthe markets presented a discounted

opportunity for investors.Speaking of opportunities, the Indianeconomy and many companies areexpected to deliver growth in the comingyears. The economy is on the mend, andeven a small debottlenecking inmanufacturing process can see somereasonable value accretion for Indiancompanies. Over time, new capacities andan increase in market penetration could offerhigher growth opportunities for Indiancompanies. India is also likely to be amanufacturing export hub once again.

Everywhere you look, whether it isinfrastructure, banking or exports, there is alot of growth potential, which can be tappedby Indian companies in the coming years.

I can really go on and on about the growthopportunities and why one should invest in

growth now, but let me take thisopportunity to talk a little about whats inour first newsletter.

I want to highlight a common mistake that Isee many mutual fund investors commitvery often the cardinal sin of chasingreturns. Very often investors are drawn into believing that investing in a fund that hasdone well in the past is the way to make aquick gain from mutual funds. This returnchasing behaviour can be dangerous forfinancial health and more often than notbelies expectations.

If you are looking at the past performanceand investing in funds, I would suggest donot invest in mutual funds. It is not the wayto invest in mutual funds. I would urge youto read and understand more about thisissue on page five, and even share it withyour friends and family members.

Recently, we saw the season of footballpass by, with the worlds biggest singlesporting event underway in Brazil- the timeto score goals. I would like to once againmake a suggestion to you of looking againat your financial goals so you are able toachieve financial success from yourinvestments. One thing I can tell you off thebat: once you identify and set your goals,stay disciplined. Have a look at the articleon pages seven and eight on financialgoals.

We also have some more articles that willbe of interest to you. Let me sign off byreminding you to look at growthopportunities for the long haul. We hopeyou enjoy this issue and look forward tohearing from many of you.

Happy investing!

Return chasingbehaviour

can be dangerousfor financial healthand more oftenthan not beliesexpectations.

LETTER FROM THE CEO

2 IPRU Insights | October 2014


3/18


4/18

Evaluating real estate

Understanding internationalfunds

A look at when gold fundsdo well

In real estate, look at the differencebetween mortgage rate and rental yield. Ifthere is a difference of less than 5 percent,then real estate may be an attractiveproposition. If the difference is above 7percent, then real estate tends to become

unattractive.

International funds may tend to do wellwhen inflation and the Current AccountDeficit (CAD) are high. In the year 2009,inflation and the Current Account Deficit(CAD) had risen. When inflation and CADrises, it is relatively a good time to invest ininternational funds, and vice versa. Nobodyat that point of time was willing to invest ininternational funds since they hadsignificantly under-performed.

Gold funds tend to perform well wheninflation is high. They also tend to do wellwhen the difference between internationalgold prices and Brent crude oil price isbelow 10 percent. On other occasions,when every asset class is doing well, it is agood time to invest in gold.

Grasping the intricacies ofdebt funds

How these guiding principlescan serve you

Debt does well when the one-year bankFixed Deposit rate is higher than inflation.One has to look at both the wholesale andconsumer price indices to arrive at theattractiveness of debt. Look at whether the

one-year bank fixed deposit rate is higherthan the Wholesale Price Index and alsothe Consumer price Index. The sum total ofboth the above ratios should be equal to ormore than two for debt to becomeattractive. If the sum is below two, thenfixed income becomes unattractive.

These thumb rules could have helpedinvestors in the past. Investors could haveavoided technology funds in 2000. During

1997-2000, all technology stocks gave200% returns. Because of the past highreturns, one could have stayed away fromsuch funds.Investors could have invested in equityfunds in 2002. Over the past 6-7 years,return on equity was 0%. This was anindicator that equity could offer potentialreturns going ahead.Again, investors could have avoided

investing in infrastructure funds in 2007.Returns dur ing that t ime of a l linfrastructure funds were 70-80% and over2 years, 100-130% returns. These highreturns were the indicator to stay awayfrom this sector.Post the Lehman crisis, investors couldhave looked at equity funds in Oct 2008.The stock market had given a -40% returnin 2008, and it was the first sign that equityhad potential to deliver returns goingforward.Income funds had become a big no-no inJune 2013. The year before that incomefunds had delivered reasonable returns anindicator that debt funds had becomeunattractive.Right now, income funds are givingreasonable returns, while equities are fairlyvalued. Debt as an asset class is showingsigns of attractiveness that investors couldlook for the long-term.



5/18

Why chasing returnsis detrimental to your portfolio

Time and again investors are making an avoidablemistake of going after past performance.It is time now to change that.

FIRST UP

Let us say you are a new investor intomutual funds, and you want to knowhow they fared in the past year. You havealways been a careful investor in bankdeposits earlier and do a thoroughevaluation before making an investment orparting with your hard-earned money. Youlook up the newspapers and find out thatsome of the preferred performing mutualfunds have given returns in excess of 50percent in the past year.You gulp. Soon you are lured into thepromise of superior returns, and beforeyou know it, you pull out your cheque bookand sign a princely sum chasing the sky-high returns. You reason that even if thefund manages to do half as well in the

future, or even one-fourth of its pastperformance, you could still end up withdecent returns.Hang on! The next time, you are tempted tochase past performance, hold on to yourhorses; thats not the way to invest inmutual funds. No fair-minded mutual fundinvestor chases past performance. If youare lured or even thinking - mistakenly - thereturns of the past can be matched in thefuture, think again.That default thinking stems from the factthat investors are psychologically attuned

to looking at assets such as bank depositsthat show their rates of investments.Investors do not seem to remember thatreturns from mutual funds can be verydifferent as against the past. Unlike bankdeposits that offer a predictable rate,

returns from mutual funds vary dependingon market conditions, asset selection andso on.In fact, even when mutual funds clearlystate that mutual fund investments aresubject to market risks, investors still lookat past performance. The writing is veryclear and when all the mutual funds put outa disclaimer that past performance may ormay not be sustained in future investorsare looking time and again chasing onefund to another trying to get higher returns.In the end, a fund investor just ends upchurning his fund portfolio, incurringhigher costs, and finding that the end-result is nowhere as expected.Fund investors should, instead, focus on

the future. Many gurus of investing havepointed time and again that one should notdrive a car by looking at the rear-view mirror(read past performance). One shouldinstead focus on the road ahead, and use

the rear-view mirror to navigate yourvehicle.Past performance matters to an extent. Ithelps individuals assess how the fundmanager has done in various marketconditions, how consistent a fundmanager has been in his ability to deployhis corpus in the market, and whether afund manager is being able to beat and stayahead of the benchmarks. Pastperformance provides vital cues to themind of fund managers and a fund house.Past performance helps in analyticalevaluation.But they are never an indication of what thefuture market conditions will be like, orhow each mutual fund portfolio will

perform. If you look at past performancefor evaluation and study current marketconditions and look for good undervaluedopportunities, you will see that you canavoid chasing returns, and instead investwith an understanding of the market.

Chasing returns usually makes an investoredgy if your fund does not match up to thepast and may set up an investor fordisappointment. Chasing returns hurtsmost when market conditions are not

conducive for a replication of similarperformance. A similar thing happened inthe past when investors chased techstocks back in 2001, when eyeballs and ICEinvesting (Information, Communication

RETURN CHASERS ARE NOT DOINGTHEIR HOMEWORK

and Entertainment) were the buzzwords,

If the past history wasall there was to the game,the richest peoplewould be librarians.

WarrenBuffett

05IPRU Insights | October 2014


6/18

only to see them crashing later. Coreeconomy stocks faced a similar situation in2 0 0 8 - 0 9 , w h i c h l e d t o a h u g edisappointment later for investors.Investors then were paying a huge price forsuch companies that still had some way togo to create earnings.It was then that retail investors moved outcompletely disillusioned by the markets.And they have not been big players in themarket since, which has seen them loseo u t o n s o m e g o o d i n v e s t m e n topportunities particularly in stayinginvested in good funds that managed toincrease their allocations to export-oriented growth companies and otherdefensive plays.When returns do not match expectations,investors tend to make the mistake of sellingtheir investments, pulling out, and endingup with losses. Investing gurus call it the

classical mistake of buying high and sellinglow, which should be avoided at all costs.C h a s i n g r e t u r n s a l w a y s b e l i e sexpectations. Let us take an example of thebroader index such as the Sensex. If youlook at the market performance of thebellwether Nifty every year end, in someyears you could see reasonable returns. Inother years, the market fell and the returnswere negative.

If you looked at the market performance incalendar year 2007, Nifty returns were 53percent. If you were chasing these returns ofthe past, the following year 2008 returns fromthe Niftys were -50 percent, burning asignificant hole in your pocket. (Source: NSE)Again if you looked at the returns ofcalendar year 2008, when the markets wasdormant, you could lose out on a goodinvesting opportunity the following year.That was the time to remain invested as thereturns in 2009 were a significant 72percent. This is an illustrative example foryou to understand and grasp the fact thatmarkets do not always perform as per thepast - market conditions change every year,and return-chasing of the past will moreoften see you making mistakes that youshouldnt make. (See chart for a clearerpicture of how market returns have been ineach calendar years).

Even in debt funds, investors have to be verycareful when looking at the past returns. Insome years, you may see superior returnsfrom debt funds, and may want to get intodebt funds. But, in fact, you might be gettinginto long-term debt funds when the ratecycle has bottomed out.However, one of the preferred times toinvest in debt funds is when debt fundshave not performed in the past year whentheir returns are miserably lower in lower

single digits. That is the time when the rate-cycle has peaked out. In fact, investorsmight not be able to grab the opportunity ofinvesting in debt funds if they look at thepast performance, and thus could lose outon the opportunity to make returns fromthe debt market.STICKING TO A PROCESS HELPS

Essentially, look at investing in mutualfunds from the point of view of how theroad ahead looks like and how the fundmanager is positioning his vehicle, andwhat his investment objectives are.Investors have to create a roadmap ofinvestment expectations, and the paththey can choose to reach to theirdestinations.Some questions to ask before investing-Whether prices of assets are cheap? Whatare the areas that are cheapest? What isthe fund manager largely going to investin? What is the growth potential of theeconomy? And so on. These are questionsthat can help you focus on where you areinvesting and can help you achieveefficiency in every rupee you invest.Never forget to look at the long-termbecause that is when returns can be made.Instead of looking at year on year returns ofthe Sensex as in the example above, look atthree-, five- or even 10-years performanceand remain invested. Returns from 2005-14, a 10-year window, have been 17 percent annualised. (Data source BSE) Your

investment aim should allow companies toexpand their businesses and scale up theiroperations, which can be more useful inincreasing your net worth.Focus on the process of investing thatinvolves buying into assets that are under-priced, investing regularly, and keeping along-term horizon. Instead of chasing fads,if you can stick to an investing road mapthat buys into investment opportunitieslooking at the future growth and currentvalue, chances are you could end up doingmuch better for yourself.

Past performance may or may not besustained in future. The above data isprovided only for information and to helpinvestors understand that there is nocertainty of returns from market. Investorscan also suffer entire loss of capital frominvesting in markets. Investors need tounderstand the various risks associated withmarkets before investing.

CNX Nifty

Years

80

60

40

20

0

-20

-40

-60

P e r

f o r m a n c e

( % )

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4



7/18

How to score morefinancial goalsNow is the time to learn a few personal goal-scoring

lessons from the beautiful game - football.

TIPS TO GET AHEAD



8/18

W e had a great soccer seasonrecently. It was one of the biggestsporting events of recent times that waswatched and enjoyed by millions of peopleall across the world- the FIFA World Cup inBrazil. The month-long extravaganzaproduced abundance of goals. It has beenfun to watch the awe-inspiring skills on

display, and the even better ball-control inthe final stages of the beautiful game.Yet, if there is anything about soccer thatdecides the winning team, it is the teamthat scores more goals. Football remindsmany of us that to win a match, one has toscore as many goals as possible, higherthan the opponent team. As it is in football,so is it in personal life. We need to scoremore goals, and importantly more financialgoals. So now, since it is the time to talkabout goals, let us look at a few ways toscore more financial goals to win the

financial game.GOAL NUMBER 1 EARN YOURPRACTICE

On top priority in the list of goals that mostpeople have is one item earning moremoney. Without a proper approach andthe right road map, this is one of thosegoals that may continue to stay on that list,without you being able to fulfill it to yoursatisfaction.The important thing is to plan ways forearning more money earning secondary

income through an alternate career,investing more in mutual funds, creatingassets and building wealth for moreincome.

GOAL NUMBER 2 SWEAT YOURSAVINGS SOME MORE

This should probably be a very importantgoal. Most of us can spend a lot of moneyon simple joys of life such as going out tothe movies, or buying the next and latesthot gadget. It is not that you should not. Infact, you should give your-self some leg

room to spend.But sometimes the better thing to do is totell yourself to stop spending on things youdo not need, and instead channel thatmoney into mutual funds. If you imagine itas an expense account for example, youwill not find the need to track it, and thisway you can give it the time it needs tomature and grow in a good mutual fund.In the beginning, however, it is very criticalthat you save as you go. You have to makesavings a vital, must-do task on your list. Inthe beginning, you may not know where to

save (this can come later), but sockingsome money away is crucial. Maybe onecan begin by a liquid or short-term debtfund, or even sock the money under yourmattress, but saving regularly and slowlyincreasing your savings is important.

GOAL NUMBER 3 START SMALL, AIMHIGHER

When you want to score a financial victory,one can start small too. You can probablystart by making some small goals of as littleas ` 1000 a month, i.e. sock away ` 1000 in amutual fund.

As you gain in confidence, start to increasethe amount of investment you make everymonth. The important thing is to climb theladder and increase your investmentamounts to funds, which could be everyyear or every six months, i.e. take longershots at the goal such as ` 5000-10000every month. After a few years, when youlook back your small investments couldhave turned into a small fortune.

GOAL NUMBER 4 GET COACHING ANDTRAIN REGULARLY

All great football teams have excellentcoaches. The same goes with your need toscore more financial goals. Here you mayneed a financial coach. You can have afinancial planner who will give you thetechnical aspects of crafting an investmentstrategy that is suited to your strengths. Agood advisor will break-down your goalsinto short- and long-term goals, and createa roadmap for you to achieve them.It is equally important to get a hang ofinvestments by researching and readingsome more, and some more. There areplenty of good books available which canenable you to take steps towards yourfinancial goals better.

All the above goals are useless if you do not get on the field and startplaying. That is the only way you will start to score goals and successes inyour financial life. The moot point is that even if you do not know how todo the right thing, the important thing is to slowly start and build therequired expertise and the right financial muscle to be able to make theright financial moves to strike a goal.

If that is not-so-easy as it sounds for you, there are systems available thatcan help you automate some of your financial tasks. Sometimes, for afew of us taking the trouble to fill out a form can be a chore. Here is whenyou can take advantage of the systematic investment plan, whichautomatically sees money going out from your account into aninvestment of your choice. With a system of learning, practice andsavings in place you should be able to score more financial goals andsuccesses.

The winning goal - Get on the field



9/18

What is net asset value or NAV? And why investors should not mistake it with theconcept of par-value at all

FUNDACLEAR



10/18

t is the one of the most common termIyou will come across when dealing inmutual funds. It is also the most vital metricwhich every investor must knowthoroughly as it assesses the worth of yourmutual fund holdings. Since, investorsinvariably deal with it on a regular basis,perhaps even daily, if you are following the

newspapers price-listing columns, it isessential that you know what itscomponents are and how it is calculated.Net asset value, or the more often usednomenclature NAV, is the total value of allthe schemes assets and holdings such asinvestment in shares, warrants ordebentures, corporate bonds, and othersecurities, out of which any liabilities orpayables are reduced, and this is adjustedor divided by the number of mutual fundunits that are outstanding.Essentially, it is the value of a single unit of

a mutual fund scheme.Net asset value (NAV) is the price that youpay for a unit that is calculated on a dailybasis by asset management companiesand it provides the reference point on

which investors are able to transact (buy orsell) mutual fund units.

Sometimes many mutual fund investorsmay mistakenly think that if the net assetvalue of a mutual unit is ` 10, then it is par

value. That is incorrect.The concept of par value should not anddoes not apply to NAV. Net asset value isthe sum of all assets and holdings of amutual fund unit. These prices aredetermined by the movements takingplace in the market. If the prices of theholdings rise, then the net asset value willrise, and if prices fall, then the NAV dipstoo.Investors may mistakenly confusebetween two very inherently differentstructures of equity investment of - equityat face value and mutual fund units at parvalue. But investors should avoid thinkingthat it represents face value of an equityshare or the par value.The confusion arises because new fundofferings (NFOs) are normally launched at a

IT IS NOT PAR VALUE

unit price of 10, which will be its initialNAV to start with. In this case, the fundsholdings will largely comprise of cashwhich the investors have parked with thefund. This cash will then later be deployedin the market at then prevailing prices, orthe prices at which the securities aretraded.

At any given time, as the mutual fund unitsare a net representation of the market valueof a funds holdings per unit, the concept ofpar value should not apply at all. So even if afunds NAV is 15, it does not mean thatinvestors are getting into a fund that isexpensive, it just simply means thatinvestors are getting in a fund at currentprices.If the NAV is higher than NAV you boughtinto a mutual fund, then you would havemade gains, and vice versa. Hence, NAVsshould just be used to gauge only at whatthe price you are entering and exiting afund, and whether you have been able togain from the market and the fundmanagers expertise or not.

`

HOW NAV IS CALCULATED

As it refers to the value of a single fund or unit, it is very simple tounderstand how it is calculated.

The formula to calculate the NAV:

NAV = Assets - Current liabilities (if any) /number of units outstanding

HOW NAV WORKSEssentially, it is calculated based on the closing prices of the stocks and other holdings it hasevery day. Let us take an example to explain this. Assume that ABC Mutual fund holds shareswhose market worth as on yesterdays closing prices on the stock exchange totals ` 1 crore.ABC Fund also has cash balance of ` 12 lakh, and liabilities of ` 2 lakh. If the fund has 10 lakhoutstanding units, then the yesterdays NAV would be calculated as follows:NAV = ( ` 1 crore + ` 12 lakh ` 2 lakh) / 10 lakh units = ` 11.00Hence, the Net Asset value of ABC fund is ` 11 yesterdays close.

A mutual funds NAV can rise or fall depending on how the value of its holdings rises or fallsin the markets. NAVs will fall when a fund declares a dividend in the scheme. Let us take anexample again to explain this. Assume ABC Fund declares a dividend of ` 1 per unit. The fundwill distribute ` 10 lakh as dividend to its existing unit holders. This will bring down the netasset value of ABC Fund to ` 10. Investors buying the shares after the dividend is announcedwill not be entitled to the dividends, and will get new units at the unit value of ` 10.



11/18

ICICI PrudentialDynamic Plan

Product of the Month

he equity markets have soared to new

Theights and a general tendency of Indianinvestors is to invest in equity when themarkets are surging high, while pullout money when the markets areunderperforming- which may not necessarilylead to the best investment experience.

ICICI Prudential Dynamic Plan seeks tocapture upside by increasing allocation toequity when the markets are declining andby reducing exposure to equities whenmarkets are rising- completely reverse ofwhat retail investors normally do.

The defensive asset allocation and fund

managers stock selection strategy has ledthis fund to outperform its benchmarkindex over various time periods and createwealth for its investors. Even during a weakmarket sentiment, the fund had shownprowess and more so, has been able tolimit the volatility.

Top-down and bottom-up strategies, bothplay an important role. The fund starts with atop-down strategy to reach at the

Strategy

investment-worthy sectors and to get a view

of large cap versus mid-cap allocation.For stock selection, both the macro andbottom-up factors are taken intoconsideration. The fund graduallybuilds/brings down a sector or stock skewbased on the valuation or conviction. Thescheme invests across market capitalisation(large, mid and small) based onattractiveness of valuation across thesegments. The Fund Manager activelymanages exposure to those sectors onwhich he holds a contrarian view.

The flexibility of higher allocation to cash in an

expensive/volatile market and higherallocation to equity during inexpensivemarket is one of the distinguishing features ofthe Scheme. The scheme is structured withan intent to benefit from volatility.

The composition of scheme in terms ofequity, fixed income and cash is guided byan in-house Price to Book Value (PBV) modelin which current market levels are comparedto the fair value range to determine under orover valuation of the market.

Outlook

There is a sense of optimism andincrease in confidence about theoutlook of Indian economy. A stableand strong government is expected tocreate a conducive environment forbusiness and provide a clear framework for growth and investment revivalwhich could ultimately lead toeconomic recovery. The interest ratesand inflation are likely to moderatetowards the downward trajectory. Thefund is positioned with intent to benefitfrom the economic revival in the offing.The fund is currently overweight onPower sector considering it as adefensive bet in terms of valuations. It isalso a direct beneficiary of reforms in thePublic Sector Undertaking (PSU) space.

Lumpsum Returns of Regular Plan - Growth Option as on June 30, 2014

Particulars June 30, 2013 toJune 30, 2014

June 30,June 30, 2013

2012 to June 30,June 30, 2012

2011 to Since Inception*

Absolute Returns(%)

Current Valueof Investment

of 10000`

CAGR (%)

Scheme 54.48 4.01 -2.51 169069.40 27.42

CNX Nifty Index 30.28 10.67 -6.53 80001.58 19.50

NAV ( ) Per(as on June 30,2014: 169.0694)

` Unit109.45 105.23 107.94 10.00

Absolute Returns(%)

Absolute Returns(%)



12/18

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison withother investment. For lump sum - For computation of since inception returns (%) the allotment NAV has been taken as ` 10.00. Loadis not considered for computation of returns. In case, the start/end date of the concerned period is a non-business date, the NAV ofthe previous date is considered for computation of returns. In case of SIP, returns are calculated by XIRR approach assuminginvestment of ` 2000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial andfinal value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions. Totalschemes managed by Mr. Sankaran Naren is 5 (5 are jointly managed) and Mr. Mittul Kalawadia is 3 (3 are jointly managed). Refer tothe table below for performance of schemes currently managed by fund managers. *Date of inception: 31-Oct-02. Benchmark isCNX NIFTY Index.


Performance of other open-ended scheme managed by Mr.Sankaran Naren & Mr. Mittul Kalawadia

Scheme Name

June 30,2013 to

June 30,

2014

June 30,2012 toJune 30,

2013

June 30,2011 to

June 30,

2012

Since Inception*

AbsoluteReturns

(%)

Current Valueof Investment

of 10000`

ICICI Prudential Top 100 Fund 47.67 6.68 1.18 215780 9-Jul-98

CNX Nifty Index 30.28 10.67 -6.53 79198.27

NAV ( ) Per

(as on June 30,2014 : 215.78)

` Unit

146.12 136.97 135.37 10.00

Inception

DateAbsoluteReturns

(%)

AbsoluteReturns

(%)

CAGR(%)

21.18

13.82

Fund Managed by Mr. SankaranNaren & Mr. Mittul Kalawadia

SIP Returns for Regular Plan Growth Option as on June 30, 2014

SIP Investments SinceInception* SIP

10 years SIP 5 years SIP 3 years SIP 1 year SIP

Total Amount Invested(` 000)

Market Value as on MonthEnd ( ` 000)

Scheme Returns (%) CAGR

CNX Nifty Returns (%) CAGR

282 240 120 72 24

1178.10 664.51 193.87 108.37 31.63

22.54 19.34 19.28 28.49 64.13

15.11 12.92 13.07 20.53 45.12

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparisonwith other investment. For computation of since inception returns the allotment NAV has been taken as Rs. 10.00. Load is notconsidered for computation of returns. In case, the start/end date of the concerned period is non business date (NBD), the NAVof the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of thesaid period.


13/1813IPRU Insights | October 2014

Past performance may or may not be sustained in future. The above data has been preparedshowing CAGR returns on an investment of ` 1, 00,000.

Growth of ` 1,00,000

LHS: Equity exposure of ICICI Prudential Dynamic Plan in percentage (%) terms

RHS: CNX Nifty Index

Equity Allocation Vs Market Movement

Note - Risk may be represented as:

This product is suitable for investors who are seeking*:

Long term wealth creation solutionA diversified equity fund that aims for growth by investing in equity & debt(for defensive considerations)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

High Risk(BROWN)

(BLUE) investors understandthat their principal will be atlow risk

(YELLOW) investorsunderstand that their principalwill be at medium risk

(BROWN) investorsunderstand that their principalwill be at high risk

ICICI Prudential Dynamic Plan


14/18

A low down onICICI Prudential Mutual FundPru Tracker

HAPPENINGS AT ICICI PRUDENTIAL MUTUAL FUND

o you want a single window to see allDyour mutual funds at one place? Doyou want to buy or redeem mutual fundseasily with the click of a button? Or evenset triggers of entering and exiting a fund?Or switch and invest in a new fund? Thenyou must check out the ICICI PrudentialMutual Fund Pru Tracker.Many of our investors are using the PruTracker to easily navigate through a host ofmutual fund functions and make the most

of their investments. In fact, Pru Trackerallows you to do to more than just transactin mutual funds. It gives you a completepicture of your investments with us andmakes mutual fund investing with us agood investment experience.Investors can not only have a look at theiraccount statements, but also set multipletriggers and set up their limits forautomatic investments. In fact, if you havenot yet seen the Pru Tracker, then you are

probably missing a vital tool that can helpyou to connect with us regularly and stay intouch with your investments with us.In fact, we think you must check out the linknow:https://www.icicipruamc.com/PruTracker/ APP/ASPX/frmLogin.aspxIf you have any suggestions forimprovement, please feel free email us.Enjoy!

PRU TRACKER



15/18

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Lucknow:

Ludhiana:

307, 3rd Floor, Zodiac Plaza, Beside Nabard Vihar, NearSt. Xaviers College Corner, H.L. Collage Road, Off C. G. Road,Ahmedabad 380009, Gujarat

109-110, Maruti Sharnam Complex, Opp. Nandbhumi PartyPlot Anand Vallabh Vidyanagar Road, Anand - 388001, Gujarat

Phoenix Pinnacle, First Floor, Unit 101 -104,No 46, Ulsoor Road, Bangalore 560042, Karnataka

2nd Floor, Offc No 202, Goldcroft, Jetalpur Road, Alkapuri,Vadodara 390007, Gujarat

MF-26/27 Block- C, Mezzanine Floor, Mansarovar Complex,Hoshangabad Road, Bhopal-462016, Madhya Pradesh

Rajdhani House, 1st Floor, Front Wing, 77, Janpath,Kharvel Nagar, Bhubhaneshwar 751001, Orissa

SCO 137-138, F.F, Sec-9C, Chandigarh 160017,Chandigarh

Abithil Square,189, Lloyds Road,Royapettah,Chennai 600014, Tamil Nadu

#956/3 & 956/4 2nd Floor, Teepeyam Towers, KurushupallyRoad, Off MG Road, Ravipuram , Kochi 682015, Kerala

Shylaja Complex, First Floor, No 575 C, D.B. Road,Near Post Office Signal, R. S. Puram, Coimbatore 641002, Tamil Nadu

1st Floor, Opp. St. Joseph school back gate, 33, Subhashroad, Dehradun 248001, Uttaranchal

Mezzanine Floor, Lokenath Mansion, Sahid KhudiramSarani, CityCentre, Durgapur 713216, West Bengal

Jadavbora Complex, M.Dewanpath, Ullubari, Guwahati781007, Assam

Gowra Plaza, 1st Floor, No: 1-8-304-

307/381/444, S.P. Road, Begumpet, Secunderabad, Hyderabad500003, Andhra Pradesh

310-311 Starlit Tower,29/1 Y N Road, Indore 452001, MadhyaPradesh

Building No 1, Opp Amrapura Sthaan, M.I. Road, Jaipur302001, Rajasthan

Office # 7, II Floor, Bharat Business Centre, Holding # 2,Ram Mandir Area, Bistupur, Jamshedpur 831001, Jharkhand

B- 9/14 (C.A), 1st Floor, Central Park, Dist- Nadia, Kalyani741235, West Bengal

516-518, Krishna Tower, 15/63, Civil Lines,Opp. U.P. StockExchange, Kanpur 208001, Uttar Pradesh

1089, E Ward, Anand Plaza, Rajaram Road, Kolhapur416001, Maharashtra

Room no. 302, 3rd Floor, Oswal Chambers,2,Church Lane, Kolkata 700001, West Bengal

227, AJC Bose Road, Anandalok, 1st Floor, RoomNo. 103/103 A, Block - B, Kolkata 700020, West Bengal

1st Floor, Modern Business Center,19 Vidhan Sabha Marg,Lucknow, 226001, Uttar Pradesh

SCO 121, Ground Floor, Feroze Gandhi Market, Ludhiana141001, Punjab

Mumbai Fort:

Mumbai - Goregaon:

Mumbai-Borivli:

Mumbai-Khar:

Mumbai-Thane:

Mumbai-Vashi:

Nagpur:

Nashik:

New Delhi:

Noida:

Panjim:

Patna:

Pune:

Raipur:

Rajkot:

Siliguri:

Surat:

Udaipur:

Varanasi:

Email:

Toll Free Numbers:

ICICI Prudential Asset Management Co Ltd, 2nd Floor,Brady House,12/14 Veer Nariman Road Fort, Mumbai 400001,Maharashtra

2nd Floor, Block B-2, Nirlon Knowledge Park,Western Express Highway, Goregaon, Mumbai 400013, Maharashtra

ICICI Prudential Mutual Fund, Ground Floor,Suchitra Enclave Maharashtra Lane, Borivali (West), Mumbai 400092,Maharashtra

ICICI Prudential Mutual Fund, 101, 1st Floor, AbbasManzil, Opposite Khar Police Station, S. V. Road, Khar (W), Mumbai400052, Maharashtra

ICICI Prudential Mutual Fund, Ground Floor, MahavirArcade,Ghantali Road, Naupada, Thane West, Thane 400602,Maharashtra

ICICI Prudential AMC Ltd, Devavrata Co-op Premises,Plot No 83, Office No 26, Gr Floor, Sector 17, Vashi, Navi Mumbai400703, Maharashtra

1st Floor, Mona Enclave, WHC Road, Near Coffee HouseSquare, Above Titan Eye Showroom, Dharampeth, Nagpur 440010,Maharashtra

Shop No 1 Rajeev Enclave Near Old Muncipal Corporation,New Pandit Colony, Nashik 422002, Maharashtra

12th Floor Narain Manzil,23 Barakhamba Road, New Delhi

110001, New Delhi

F-25, 26 & 27, First Floor,Savitri market, Sector-18, Noida201301, Uttar Pradesh

Sandeep Apts, Shop No. 5 & 6, Grond Floor, Next to HotelSamrat, Dr. Dada Vaidya Road, Panaji 403001, Goa

1st Floor, Kashi Place, Dak Bungalow Road, Patna 800001,Bihar

1205 /4/6 Shivaji Nagar, Chimbalkar House, Opp SambhajiPark, J M Road, Pune 411004, Maharashtra

3rd Floor, Tank Business Tower, Near Fafadih Chowk, Raipur -492001

Office no 201, 2nd Floor, Akshar X, Jagannath-3, Dr. YagnikRoad, Rajkot 360001, Gujarat

Ganapati Plaza, 2nd Floor, Sevoke Road, Siliguri 734001,West Bengal

HG 30, B Block, International Trade Center, Majura Gate, Surat395002, Gujarat

Shukrana, 6 Durga Nursery Road, Near Sukhadia Memorial,

Udaipur 313001, RajasthanD-58/2, Unit No.52 & 53,Ist Floor, Kuber Complex,Rath

Yatra Crossing, Varanasi 221010, Uttar Pradesh

[email protected]

(MTNL/BSNL) 1800222999; (Others)18002006666.

For additional official transaction acceptance points visit our Website:www.icicipruamc.com



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

In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (the AMC) hasused information that is publicly available, including information developed in-house. Some of the material used in the documentmay have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made availableto the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources.The AMC, however, does not warrant the accuracy, reasonableness and / or completeness of any information. We have includedstatements / opinions / recommendations in this document, which contain words, or phrases such as will, expect , should,believe and similar expressions or variations of such expressions that are forward looking statements. Actual results may differmaterially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectationswith respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countriesglobally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation,

unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, etc. The AMC (including itsaffiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not be liable for any loss,damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss ofprofit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for anydecision taken on this material. All figures and other data given in this document are dated and the same may or may not be relevantin future. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and otherfinancial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund. The sector(s) mentioned in thisnewsletter do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any futureposition in these sector(s).

ICICI Prudential Value Fund- Series 1, Series 2, Series 3, Series 4

This product is suitable for investors who are seeking*:

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note - Risk may be represented as:

(BLUE) investors understandthat their principal will be atlow risk

(YELLOW) investors understandthat their principal will be atmedium risk

BROWN) investors understandthat their principal will be athigh risk

Close-ended diversified equity funds that aims to provide capital appreciation by

investing in a well diversified portfolio of stocks through fundamental analysis.

Long term wealth creation solutionHigh Risk(BROWN)

Documents

IPRU InsightsNewsletter Oct 2014