Monthly Market Outlook September Equity: A case for building equity portfolio now Fixed Income: Case for Investments remains

Transcription

1 Monthly Market Outlook September 2017 Equity: A case for building equity portfolio now Fixed Income: Case for Investments remains

2 World Index (1 Month Return in %) Month Return (%) Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Europe - Euronext 100; Hong Kong - HangSeng; USA - Dow Jones; Singapore - Strait Times; Russia - RTS Index; U.K. - FTSE; South Korea - Kospi; Brazil - Ibovespa Sao Paulo Index; Indonesia Jakarta Composite Index; Switzerland Swiss Market Index; Taiwan Taiwan Weighted Index; India S&P BSE Sensex The top 3 performing indices belonged to emerging markets Russia, Brazil, China. China posted higher than expected GDP growth of 6.9% year-on-year in the Apr-Jun quarter, driven by improvements in industrial production and domestic consumption. Manufacturing PMI remained above 51, signaling further expansion. Returns in % terms. Data Source: MFI; Returns are absolute returns calculated between Jul 31, 2017 Aug 31, Past Performance may or may not be sustained in future. 2

3 Sector Index (1 Month Return in %) S&P BSE Metal index rose owing to positive economic cues from China. Meanwhile, Auto stocks fell after the GST Council recommended hiking the ceiling for compensation cess on motor vehicles. Index 1 Month (%) S&P BSE Mid Cap 0.98 S&P BSE Small Cap S&P BSE Sensex All indexes are of S&P BSE; Bankex - S&P BSE Bank; CD - S&P BSE Consumer Durables; CG - S&P BSE Capital Goods; FMCG - S&P BSE Fast Moving Consumer Goods; Infra. - S&P BSE India Infrastructure; IT - S&P BSE Information Technology; Data Source: MFI; Returns are absolute returns calculated between Jul 31, 2017 Aug 31, Past Performance may or may not be sustained in future. 3

4 Non-Financial Sector Debt-to-GDP Ratio (% of GDP) Among some of the major emerging markets, India is the only country that has witnessed a fall in Debt to GDP ratio between This reflects deleveraging of the corporate sector, which can lead to lower interest payments and strengthening balance sheets. This could benefit the corporates during an up-cycle. China Brazil India Russia Mexico Indonesia Data Source: CLSA report August 2017 ; GDP-Gross Domestic Product. 4

5 Global Competitiveness Index Improvement in rank between the period 2014 to (10) 1 (3) 4 2 India saw the highest improvement in the Competitiveness Index among Emerging Markets over (20) (30) (40) (25) Rank - 81 Rank - 28 Rank - 41 Rank - 51 Rank - 57 Rank - 43 Rank - 39 Brazil China Indonesia Mexico Philippines Russia India A factor that could attract attention of global investors. Data Source: CLSA report August 2017; 5

6 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18F Favourable Current account balance 100 (US$bn) CAD Net FDI Net Net FDI FDI remins remains well well ahead ahead of of CAD CAD Stable crude prices and favourable long term economic prospects of India has kept the current account payment range bound. 0 (20) Data Source: CLSA report August 2017; CAD-Current Account Deficit; FDI-Foreign Direct Investment; GDP-Gross Domestic Product; F Forecast; FY Fiscal Year 6

7 Valuations Paradox 20 One-year forward PE Average (%) MSCI India premium to MSCI EM Average premium MSCI India premium to MSCI AxJ Average premium (10) (20) Aug 08 Aug 09 Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Nifty 50 PE is off the charts; but it is based on low-earnings cycle Data Source: CLSA report August 2017; EM-Emerging Markets; MSCI: Morgan Stanley Capital International But valuation is a global issue; India s relative valuation close to global peers 7

8 Equity A case for building equity portfolio now 8

9 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Capacity Utilisation as per RBI 82 (%) According to the Reserve Bank of India, capacity utilisation is close to bottoming out and housinggrowth revival could raise capacity utilisation for various sectors Data Source: CLSA report August 2017; Data as of March 31,

10 (Rs in billion) Sector order backlog 8,000 7,000 CG - Power CG - Non Power Construction Developers 6,000 5,000 4,000 3,000 2,000 1,000 Order backlog in the capitalgoods segment has seen a revival in the past three years 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Data Source: CLSA report August 2017 ; Annual Report; CG Capital Goods 10

11 (Rs in billion) Government budget for housing schemes 350 PMAY - Rural PMAY - Urban Government is supporting housing construction through its budget and further growth is expected FY13 FY14 FY15 FY16 FY17RE FY18BE Data Source: CLSA report August 2017; PMAY-Pradhan Mantri Awas Yojana; CAGR: Compound Annualised Growth Rate; RE Revised Estimates; BE Budget Estimates 11

12 Rural progress seen (million) Houses completed under PMAY-Rural (erstwhile IAY) PMAY- Rural Scheme is already resulting in increasing housing construction in rural areas and the growth is expected at a similar pace 0.0 FY13 FY14 FY15 FY16 FY17 FY19E Data Source: CLSA report August 2017; PMAY-Pradhan Mantri Awas Yojana; IAY-Indira Awas Yojana; E - Estimates 12

13 Revenue Growth for Domestic Companies 30 YoY growth (%) Revenue growth has bottomed out and could improve FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E Data Source: CLSA report August 2017; FY: Financial Year, YoY: Year-on-Year; E: Estimate 13

14 Outlook Equity markets saw consolidation over the past month given domestic reasons such as muted quarterly earnings and downward earnings revisions, and sharp fall in an index heavyweight. However, the good news is that there are early signs of expansion of tax base post implementation of GST and that nominal GDP has accelerated post demonetisation. This could potentially result in higher tax revenues and support GDP growth. Easing monetary conditions and reforms to address the twin deficit problems could help the economy achieve its full potential sooner. We continue to believe that the economy is not over heated and the equity market still remains in the midcycle as parameters like credit growth, earnings growth and capacity utilization appear to be close to cyclical lows. In this mid-cycle, investors are recommended to invest in dynamic asset allocation schemes as they are well-positioned to benefit from market-cycles over long-term. Investors looking to take exposure in pure-equity schemes for long-term could also consider investing systematically in ICICI Prudential Value Discovery Fund. For thematic exposure, investors could consider ICICI Prudential Infrastructure Fund. GST Goods and Services Tax; GDP-Gross Domestic Product. None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors before investing. 14

15 Equity Valuation Index Book Partial Profits Stay Invested EIF/BAF Dynamic/Balanced Multicap Schemes Midcap Schemes Our equity valuation index indicates that investors could consider ICICI Prudential Equity Income Fund and ICICI Prudential Balanced Advantage Fund Investors with high risk appetite could consider investing lumpsum amounts in large-cap oriented schemes and in thematic funds such as ICICI Prudential Infrastructure Fund. Equity Valuation index is calculated by assigning equal weights to Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE and Market Cap to GDP ratio. G-Sec Government Securities. GDP Gross Domestic Product EIF: ICICI Prudential Equity Income Fund; BAF: ICICI Prudential Balanced Advantage Fund; Dynamic: ICICI Prudential Dynamic Plan; Balanced Fund: ICICI Prudential Balanced Fund. None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors before investing. 15

16 Our Equity Scheme Recommendations Pure Equity Schemes ICICI Prudential Value Discovery Fund ICICI Prudential Top 100 Fund ICICI Prudential Multicap Fund ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Select Large Cap Fund Asset Allocation Schemes ICICI Prudential Balanced Advantage Fund ICICI Prudential Balanced Fund ICICI Prudential Dynamic Plan ICICI Prudential Equity Income Fund Theme-based Schemes ICICI Prudential Infrastructure Fund None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors before investing. 16

17 Feeling Left Out Of The Bull Run? You can participate in equity through ICICI Prudential Balanced Advantage Fund. S&P BSE Sensex vs. ICICI Prudential Balanced Advantage Fund s net equity level LHS: S&P BSE Sensex Levels RHS: Net Equity Exposure The Scheme seeks to follow dynamic asset allocation strategy based on an in-house valuation model. It aims to reduce the portion of equity assets in its portfolio when markets are expensive & vice versa Buy Low Sell High 78% 73% 68% 63% 58% 53% 48% 43% 38% % Data Source: MFI, Internal; Data As on: Aug 31, 2017: The asset allocation and investment strategies will be as per the Scheme Information Document of the Scheme. Net Equity level has been calculated by adding long positions and adjusting short positions from the net asset value. The gross equity exposure is maintained between % of the portfolio. 17

18 All-in-1 ICICI Prudential Equity Income Fund Where does the scheme invest? Equity: Across market cap Net-Equity exposure between 20 to 40%. Benefits of ICICI Prudential Equity Income Fund? Liquidity: Redemption in T+1* Days Arbitrage: Debt: Aims to benefit from the arbitrage opportunities available in the market. Actively manages duration Invest based on interest rate outlook Invest in corporate securities for accrual income Consistent Cash flow Monthly Dividend^^ + Automatic Withdrawal Plan^^ Potential Wealth Creation: The scheme benefits from exposure to Equity and Fixed Income Tax Efficiency: Return on investment made for a year or more is tax free** ^^Dividend is subject to availability of distributable surplus and approval of Trustees. It should be noted that pursuant to payment of dividend, the NAV of the plan/dividend option of the Scheme would fall to the extent of dividend payout and statutory levy, if any. Automatic Withdrawal Plan (AWP) feature will allow investors to redeem a fixed sum of money periodically at the prevailing Net Asset Value (NAV) depending on the option chosen by the investor. ** According to prevailing tax laws. Dividend Distribution Tax & Long Term Capital Gains (LTCG) Tax is Nil for Equity Mutual Fund Schemes as per Finance Act 17. No LTCG if holding is for more than one year, basis prevailing tax laws. *Kindly note that SEBI prescribed time limit for redemption payment is 10 business days. It is necessary to consult tax/financial advisor before making investment in mutual fund. The asset allocation and investment strategies will be as per the Scheme Information Document of the scheme. The abbreviation T+1 refers to the settlement date of security transactions and denote that the settlement occurs on a transaction date plus one day.

19 Fixed Income Case For Investment Remains 19

20 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Real Yields G Sec 10 Year Real Interest Rates Real Interest Rate in Positive Territory Real Yields Gsec-10yr Real Interest Rates = 10 Year G-Sec Yield CPI Inflation Source: Internal; CPI - Consumer Price Index Data as of July

21 Negative Real Interest Rates Phase Low High Consumption High Borrowing ` High Investment in Physical Assets Currency Depreciati on Savings CAD High Inflation High CAD Negative real interest rate phase witnesses higher economic activities. Potential gainers in this phase include investors in Physical Assets Potential losers in this phase include investors in Financial Assets CAD Current Account Deficit 21

22 Positive Real Interest Rates Phase Low Consumption High Financial Savings ` Low Investment in Physical Assets Currency Appreciation % Low Credit Growth CAD Low Inflation Lower CAD Positive real interest rate phase sees slower economic activities. Potential gainers in this phase include investors in Financial Assets Potential losers in this phase include investors in Physical Assets CAD Current Account Deficit 22

23 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Headroom For Further Rate Cut: Private Sector Capex not in Sight; Retail Credit also Slowing 60% 50% 40% 30% 20% 10% 0% -10% Industry Credit 50% 40% 30% 20% 10% 0% -10% Personal Loans Trends Lack of private investment and low capacity utilization is expected to keep the credit growth low in the near-medium term Source: RBI; Industry Credit as on June 2017; Personal loan as on July

24 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Headroom for Further Rate Cut: Banks Left with Excess Liquidity post Demonetisation Incremental Credit to Deposit Ratio (%) 6000 Outstanding Reverse Repo (Rs. Billions) Long term Average Demonetisation has resulted in substantial increase in financial savings. Even after re-monetisation, banks are left with excess deposits Source: RBI; Credit to deposit ratio data as of August 2017; Outstanding reverse repo data as on August

25 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Headroom for Further Rate Cut: US - India Target Inflation and Interest Rate Differential Case for lower spreads 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% India-US CPI Differential India-US Interest Rate Differential With the target inflation gap expected to be lower ~2% (Target Inflation by both Central Bankers: India 4% & US 2%), spread in yields between US and India is expected to narrow. Source: Internal. Data as of July 31,

26 Macro Indicators Improved significantly in last 5 years Indicators June 2013 June 2015 NOW CPI inflation * Fx Reserves (USD Mn) 2,80, ,55, ,92,868` CAD (% of GDP) 5.1% ` Oil Prices USD/bbl ^ RBI policy rates 7.25% 7.25% 6.00%^ 10yr G-Sec 7.5% 7.9% 6.53^ Fiscal Deficit (% of GDP)** 4.8% 4.1% 3.5% Political Scenario Uncertain Stable Stable Source: RBI, Internal, MOSPI. *July 2017, ^August 2017, ** All figures are as per respective Fiscal Year: FY13, FY15, FY17; `-FY17; G-Sec Government Securities; GDP Gross Domestic Product; USD/bbl USD per barrel; CAD Current Account Deficit; RBI Reserve Bank of India. Fx: Foreign Exchange. 26

27 To Summarise Our Outlook For Fixed Income GDP growth for the first quarter of this fiscal year came in at 5.7%, which was below RBI s and government s forecast of over 7%. If growth estimates are to be held, GDP growth would have to clock closer to 8% over the next three quarters. RBI s tight monetary policy with high real rates has resulted into higher FPI inflows in the recent months. RBI intervention in the foreign exchange markets by adding to foreign exchange reserves has resulted in the appreciation of currency over the past 6 months. Also, destocking on account of GST implementation has hit inventory levels and resulted in short term growth. The above mentioned factors have mainly contributed to the slowdown in GDP growth, particularly evident in consumption, manufacturing and exports. As the demand in the economy has been weak, core inflation has remained low. We believe that weak growth, low inflation and high capital flows all suggest that the RBI has room to cut interest rates further over the next 2-3 quarters, the timing and quantum will depend on further incoming data prints. Based on the factors mentioned above, we continue to hold a moderately bullish stance on yields and recommend investors to invest in short to medium duration, dynamic duration and accrual schemes. Source: Internal and government documents. GST - Goods and Services Tax; GDP-Gross Domestic Product. FPI: Foreign Portfolio Investors, RBI: Reserve Bank of India. 27

28 Debt Valuation Index High Duration Moderate Duration Aggressively in High Duration 6.41 We recommend investors to invest in Moderate Duration schemes or ICICI Prudential Long Term Plan, a modelbased scheme that aims to offer reasonable risk-adjusted returns Low Duration Ultra Low Duration Long-term investors in debt are recommended to invest in Dynamic Duration schemes as they have flexibility to change duration stance. Debt Valuation Index considers WPI, CPI, Sensex YOY returns, Gold YOY returns and Real estate YOY returns over G-Sec yield, Current Account Balance and Crude Oil Movement for calculation. WPI Wholesale Price Index; CPI Consumer Price Index. None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors before investing. 28

29 Fixed Income Scheme Recommendations Accrual / Short Duration Schemes ICICI Prudential Corporate Bond Fund ICICI Prudential Regular Savings Fund ICICI Prudential Regular Income Fund: An open-ended income scheme. Income is not assured and is subject to the availability of distributable surplus. ICICI Prudential Savings Fund Medium Duration Schemes ICICI Prudential Dynamic Bond Fund Model-Based Duration Schemes ICICI Prudential Long Term Plan None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors before investing. 29

30 10-Year G-Sec (%) Modified Duration (Years) About ICICI Prudential Long Term Plan 7.2 Dynamic Duration Management 8 7 In-house Current Account Deficit Model Model-based Duration Calls Aim to benefit from different kinds of interest rate scenarios Modified Duration G-Sec Values The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. Source: MFI Explorer. Past performance may or may not be sustained in future. Data as of Aug 31, Performance in CAGR (compound annualised growth rate) terms. 30

31 Riskometers ICICI Prudential Dynamic Plan is suitable for investors who are seeking*: Long term wealth creation solution A diversifed equity fund that aims for growth by investing in equity and debt (for defensive considerations) *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Balanced Fund is suitable for investors who are seeking*: Long term wealth creation solution A balanced fund aiming for long term capital appreciation and current income by investing in equity as well as fixed income securities. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*: Long term wealth creation solution An equity fund that aims for growth by investing in equity and derivatives. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 31

32 Riskometers ICICI Prudential Multicap Fund is suitable for investors who are seeking*: Long term wealth creation solution A growth oriented equity fund that invests in equity and equity related securities of core sectors and associated feeder industries. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Long Term Plan is suitable for investors who are seeking*: Medium term savings solution A Debt Fund that invests in debt and money market instruments with a view to maximise income while maintaining optimum balance of yield, safety and liquidity. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Dynamic Bond Fund is suitable for investors who are seeking*: Medium term wealth creation solution A debt fund that invests in Debt and money market instruments with a view to provide regular income and growth of capital. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 32

33 Riskometers ICICI Prudential Infrastructure Fund is suitable for investors who are seeking*: Long term wealth creation solution An equity fund that aims for growth by primarily investing in securities of companies belonging to infrastructure and allied sectors. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Savings Fund is suitable for investors who are seeking*: Short term savings solution A debt fund that invests in debt and money market instruments of various maturities with an aim to maximise income while maintaining an optimum balance of yield, safety, and liquidity. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Regular Income Fund (An open-ended income scheme. Income is not assured and is subject to the availability of distributable surplus.) This scheme is suitable for investors who are seeking*: Medium term regular income solution A hybrid fund that aims to generate regular income through investments primarily in debt and money market instruments and long term capital appreciation by investing a portion in equity. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 33

34 Riskometers ICICI Prudential Regular Savings Fund is suitable for investors who are seeking*: Medium term savings solution A debt fund that aims to deliver consistent performance by investing in a basket of debt and money market instruments with a view to provide reasonable returns while maintaining optimum balance of safety, liquidity and yield. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Corporate Bond Fund is suitable for investors who are seeking*: Long term savings solution A debt fund that invests in debt and money market instruments of various maturities with a view to maximise income while maintaining optimum balance of yield, safety and liquidity. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Equity Income Fund is suitable for investors who are seeking*: Long term wealth creation solution An equity scheme that seeks to generate regular income through investments in fixed income securities, arbitrage and other derivative strategies and aim for long term capital appreciation by investing in equity and equity related instruments. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 34

35 Riskometers ICICI Prudential Focused Bluechip Equity Fund is suitable for investors who are seeking*: Long term wealth creation solution A focused large cap equity fund that aims for growth by investing in companies in the large cap category *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Value Discovery Fund is suitable for investors who are seeking*: Long term wealth creation solution A diversified equity fund that aims to generate returns by investing in stocks with attractive valuations *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 35

36 Riskometers ICICI Prudential Select Large Cap Fund is suitable for investors who are seeking*: Long term wealth creation solution An equity fund that aims to generate capital appreciation by investing in equity or equity related securities of companies forming part of S&P BSE 100 Index *Investors should consult their financial advisers if in doubt about whether the product is suitable for them ICICI Prudential Top 100 Fund is suitable for investors who are seeking*: Long term wealth creation solution An equity fund that aims to provide long term capital appreciation by predominantly investing in equity and equity related securities. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 36

37 Disclaimer for Mutual Funds Mutual Fund investments are subject to market risks, read all scheme related documents carefully. All figures and other data given in this document are dated. The same may or may not be relevant at a future date. The AMC takes no responsibility of updating any data/information in this material from time to time. The information shall 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 Prudential Asset Management Company Limited. Prospective investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund. Data source: Internal unless mentioned specifically. Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd. (the AMC) has used information that is publicly available, including information developed in-house. The stock(s)/sector(s) mentioned in this document do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in these stock(s). Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to 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 included statements / 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 differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, 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. ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Further, the information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision taken on this material. 37