This document discusses active duration management strategies for fixed income portfolios. It notes that interest rates are expected to become more volatile as the central bank normalizes liquidity. It recommends keeping portfolios nimble by actively managing duration across different debt schemes based on their investment horizon and objectives. Specific strategies discussed include running a barbell strategy in short duration funds and adding exposure to floating rate bonds and corporate bonds. The document also provides updates on duration positions across various ICICI debt mutual fund schemes.
We believe, as the RBI gains comfort with growth picking-up, the first nudge would be to move the short-term rates closer to the mid-point of the policy rate corridor.
Valuations are not cheap, Business Cycle remains in the nascent stage. We believe, the current macro-economic scenario is much more conducive for a Business Cycle Recovery due to Global and domestic policy response.
Debt Valuation Index (July 2021) | ICICI Prudential Mutual Fundiciciprumf
We remain very cautious on duration as the interest rates are expected to remain volatile due to RBI normalizing liquidity conditions and upside risk to inflation due to economic recovery.
We believe valuations are not cheap, but business cycle remains in the nascent stage. Prefer middle-of-the-road approach and recommend investing in schemes with higher flexibility.
Invest in products that make up your daily routine and aim to be a part of their growth with ICICI Prudential FMCG ETF. Start investing today and include diverse and innovative companies to your portfolio.
Hurry! NFO closes on 2nd August 2021.
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We believe, as the RBI gains comfort with growth picking-up, the first nudge would be to move the short-term rates closer to the mid-point of the policy rate corridor.
Valuations are not cheap, Business Cycle remains in the nascent stage. We believe, the current macro-economic scenario is much more conducive for a Business Cycle Recovery due to Global and domestic policy response.
Debt Valuation Index (July 2021) | ICICI Prudential Mutual Fundiciciprumf
We remain very cautious on duration as the interest rates are expected to remain volatile due to RBI normalizing liquidity conditions and upside risk to inflation due to economic recovery.
We believe valuations are not cheap, but business cycle remains in the nascent stage. Prefer middle-of-the-road approach and recommend investing in schemes with higher flexibility.
Invest in products that make up your daily routine and aim to be a part of their growth with ICICI Prudential FMCG ETF. Start investing today and include diverse and innovative companies to your portfolio.
Hurry! NFO closes on 2nd August 2021.
Know more at https://bit.ly/3zfR0f8
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that market Valuations are not cheap. Business Cycle remains in the nascent stage.
Equity investing can be looked at only from a long term perspective coupled with “Dynamic Asset Allocation Scheme’ that aims to manage market volatility.
ICICI Prudential Mutual Fund | Impact analysis iciciprumf
Going forward, RBI may have to do a fine balancing act. On one hand, support for growth trajectory is needed due to the second wave and on the other hand, RBI would need to keep an eye on upside risk to inflation.
Fixed Income Update | ICICI Prudential Mutual Fundiciciprumf
A changing macro-environment warrants a more active management of fixed income portfolio that continually balances duration and accrual. We recommend the following strategies: Accrual strategy and Active duration strategy. It may be an opportune time to invest in floating rate bond in this interest rate scenario to dodge interest rate volatility.
The policy decisions are in line with our expectation on repo rate and stance. However, we were expecting a hike in reverse repo rate. We are in an interest-rate rise cycle and hence recommend active duration management.
• Interbank call money rates remained mostly below the RBI’s repo rate of 4% in June as overall systemic liquidity remained surplus.
• Currency in circulation rose 20.6% on-year in the week ended June 19, 2020, compared with 12.7% growth a year ago. The RBI, via its liquidity window, absorbed Rs 3770.33 billion on a net daily average basis in June 2020, compared with net liquidity absorption of Rs 5114.71 billion in May 2020.
• Bank credit growth rose 6.2% on-year in the fortnight ended June 5, 2020, compared with 6.5% on-year growth reported in the fortnight ended May 8, 2020.
Annual Outlook 2022 | ICICI Prudential Mutual Fundiciciprumf
The current environment is akin to shifting sands, where dynamism is at its peak. Hence, it would be prudent to have an active management approach. Read our annual outlook 2022, to know more.
ICICI Prudential Mutual Funds Fixed income updateiciciprumf
These are interesting times. We have seen the worst growth contraction in decades but interest rates still remains higher than lows seen during other crisis.
Index Performance: Indian equity indices S&P BSE Sensex and Nifty 50 tanked 23% each in March 2020 due to worries about the rapid spread of Covid19 in the country and the government’s lockdown decision. The benchmark
indices also logged their biggest one-day fall on March 23 and hit their lower circuits twice in the month, triggering trading halts for 45 minutes.
Inflation: Retail inflation, based on Consumer Price Index (CPI), fell to 6.58% in February 2020 from a 68-month high of 7.59% in January, because of a decline in food prices and the base effect.
Currently, valuations seem reasonable for long term investment, Business Cycle has bottomed out and relatively low FII flows have been recorded. Our framework suggests that it is time to accumulate equities and stay invested for long term.
ICICI Prudential Mutual Fund- Valuations Perspective November 2020iciciprumf
Our Valuation perspective note indicates that Equity investing can be looked at from a staggered approach with a minimum horizon of ‘3-5 Yrs’ coupled with ‘Dynamic Asset Allocation Schemes’ that aim to manage equity exposure basis market valuations.
Diversify into debt funds with ICICI Prudential Floating Interest Fund and aim to generate income by investing in floating rate instruments while maintaining the optimum balance of yield, safety and liquidity.
ICICI Prudential NASDAQ 100 Index Fund - One Pagericiciprumf
Give your portfolio access to leading global companies and work towards your potential wealth creation by investing in ICICI Prudential NASDAQ 100 Index Fund.
Hurry! NFO starts today and closes on 11th October 2021.
Get more information at https://bit.ly/3zFdHJy
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable, Business Cycle has bottomed out, Trigger would be the trajectory of COVID-19 growth curve, Sentiments are negative since FPIs are withdrawing money and past returns have been muted. This suggests that it is a good time to invest in equities
Interbank call money rates remained mostly below the RBI‟s repo rate of 4% in May owing to comfortable liquidity in the system. However, some pressure was seen on the rates following intermittent spike in demand for funds from banks.
Currency in circulation rose 18.4% on-year in the week ended May 22, 2020, compared with 14.2% growth a year ago. The RBI, via its liquidity window, absorbed Rs 5114.71 billion on a net daily average basis in May 2020, compared with net liquidity absorption of Rs 4751.55 billion in April 2020.
Bank credit growth rose 6.5% on-year in the fortnight ended May 8, 2020, compared with 7.2% on-year growth reported in the fortnight ended April 10, 2020.
We believe that volatility is expected to prevail as the world comes to terms with the evolving COVID-19 situation & its economic fallout. Investors must embrace volatility & be cognizant of their asset allocation while invest.
Better Credit Quality Fund Bouquet – A Good iciciprumf
Considering the current market volatility and attractive spreads that corporate bonds offer over the repo, we believe that the best strategy may be to invest in a portfolio with higher
exposure towards corporate bonds and money market instruments with low to moderate duration, which may provide better risk adjusted returns.
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that market Valuations are not cheap. Business Cycle remains in the nascent stage.
Equity investing can be looked at only from a long term perspective coupled with “Dynamic Asset Allocation Scheme’ that aims to manage market volatility.
ICICI Prudential Mutual Fund | Impact analysis iciciprumf
Going forward, RBI may have to do a fine balancing act. On one hand, support for growth trajectory is needed due to the second wave and on the other hand, RBI would need to keep an eye on upside risk to inflation.
Fixed Income Update | ICICI Prudential Mutual Fundiciciprumf
A changing macro-environment warrants a more active management of fixed income portfolio that continually balances duration and accrual. We recommend the following strategies: Accrual strategy and Active duration strategy. It may be an opportune time to invest in floating rate bond in this interest rate scenario to dodge interest rate volatility.
The policy decisions are in line with our expectation on repo rate and stance. However, we were expecting a hike in reverse repo rate. We are in an interest-rate rise cycle and hence recommend active duration management.
• Interbank call money rates remained mostly below the RBI’s repo rate of 4% in June as overall systemic liquidity remained surplus.
• Currency in circulation rose 20.6% on-year in the week ended June 19, 2020, compared with 12.7% growth a year ago. The RBI, via its liquidity window, absorbed Rs 3770.33 billion on a net daily average basis in June 2020, compared with net liquidity absorption of Rs 5114.71 billion in May 2020.
• Bank credit growth rose 6.2% on-year in the fortnight ended June 5, 2020, compared with 6.5% on-year growth reported in the fortnight ended May 8, 2020.
Annual Outlook 2022 | ICICI Prudential Mutual Fundiciciprumf
The current environment is akin to shifting sands, where dynamism is at its peak. Hence, it would be prudent to have an active management approach. Read our annual outlook 2022, to know more.
ICICI Prudential Mutual Funds Fixed income updateiciciprumf
These are interesting times. We have seen the worst growth contraction in decades but interest rates still remains higher than lows seen during other crisis.
Index Performance: Indian equity indices S&P BSE Sensex and Nifty 50 tanked 23% each in March 2020 due to worries about the rapid spread of Covid19 in the country and the government’s lockdown decision. The benchmark
indices also logged their biggest one-day fall on March 23 and hit their lower circuits twice in the month, triggering trading halts for 45 minutes.
Inflation: Retail inflation, based on Consumer Price Index (CPI), fell to 6.58% in February 2020 from a 68-month high of 7.59% in January, because of a decline in food prices and the base effect.
Currently, valuations seem reasonable for long term investment, Business Cycle has bottomed out and relatively low FII flows have been recorded. Our framework suggests that it is time to accumulate equities and stay invested for long term.
ICICI Prudential Mutual Fund- Valuations Perspective November 2020iciciprumf
Our Valuation perspective note indicates that Equity investing can be looked at from a staggered approach with a minimum horizon of ‘3-5 Yrs’ coupled with ‘Dynamic Asset Allocation Schemes’ that aim to manage equity exposure basis market valuations.
Diversify into debt funds with ICICI Prudential Floating Interest Fund and aim to generate income by investing in floating rate instruments while maintaining the optimum balance of yield, safety and liquidity.
ICICI Prudential NASDAQ 100 Index Fund - One Pagericiciprumf
Give your portfolio access to leading global companies and work towards your potential wealth creation by investing in ICICI Prudential NASDAQ 100 Index Fund.
Hurry! NFO starts today and closes on 11th October 2021.
Get more information at https://bit.ly/3zFdHJy
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable, Business Cycle has bottomed out, Trigger would be the trajectory of COVID-19 growth curve, Sentiments are negative since FPIs are withdrawing money and past returns have been muted. This suggests that it is a good time to invest in equities
Interbank call money rates remained mostly below the RBI‟s repo rate of 4% in May owing to comfortable liquidity in the system. However, some pressure was seen on the rates following intermittent spike in demand for funds from banks.
Currency in circulation rose 18.4% on-year in the week ended May 22, 2020, compared with 14.2% growth a year ago. The RBI, via its liquidity window, absorbed Rs 5114.71 billion on a net daily average basis in May 2020, compared with net liquidity absorption of Rs 4751.55 billion in April 2020.
Bank credit growth rose 6.5% on-year in the fortnight ended May 8, 2020, compared with 7.2% on-year growth reported in the fortnight ended April 10, 2020.
We believe that volatility is expected to prevail as the world comes to terms with the evolving COVID-19 situation & its economic fallout. Investors must embrace volatility & be cognizant of their asset allocation while invest.
Better Credit Quality Fund Bouquet – A Good iciciprumf
Considering the current market volatility and attractive spreads that corporate bonds offer over the repo, we believe that the best strategy may be to invest in a portfolio with higher
exposure towards corporate bonds and money market instruments with low to moderate duration, which may provide better risk adjusted returns.
"Tide is Turning" aims to simplify key pointers pertaining to the recent RBI's policy. It details newly introduced Standing Deposit Facility (SDF) and how with SDF, LAF (Liquidity Adjustment Facility) corridor will be restored back to pre-pandemic levels. Floating rate bonds can provide necessary cushion in such an rising rate environment.
ICICI Prudential Equity Schemes Bluebook | September 2022iciciprumf
Equity in your portfolio can be your solution for long term wealth creation. There's a scheme for each one of you depending on your goal.
To know more about key equity offerings- read our Equity Product bouquet "Equity Bluebook"
RBI reduced the Repo rate by 25 basis points to 6.25%
Reverse Repo rate stands adjusted to 6.00%
Marginal Standing Facility (MSF) rate and the Bank rate stands
adjusted to 6.50%
Cash Reserve Ratio (CRR) remains unchanged at 4%
Statutory Liquidity Ratio (SLR) stands adjusted to 19.25%
RBI policy highlights:
- RBI reduced the Repo rate by 25 basis points to 6.00%
- Reverse Repo rate stands adjusted to 5.75%
- Marginal Standing Facility (MSF) rate and the Bank rate stands adjusted to 6.25%
- Cash Reserve Ratio (CRR) remains unchanged at 4%
- Statutory Liquidity Ratio (SLR) stands adjusted to 19.25%
Read the full document to know more.
SBI Magnum Monthly Income Plan: A Hybrid Mutual Fund Scheme - Aug 2016SBI Mutual Fund
SBI Magnum Monthly Income Plan (SBI MMIP) is a hybrid fund which invests in government securities, corporate debt and money market instruments as well as a small portion in equity. This mutual fund scheme has a moderate risk profile and is best suited for investors seeking long term capital appreciation. Check the SBI Mutual Fund page https://www.sbimf.com/Products/HybridSchemes/Magnum_Monthly_Income_Plan.aspx for more information about this mutual fund.
As communicated earlier, we believe that we are at the start of interest rate-rise cycle and in the current phase where growth and inflation dynamics are evolving, more nimble and active duration management strategy is recommended as it may benefit from high term premium.
Fixed Income Update (September 2021) | ICICI Prudential Mutual Fundiciciprumf
As highlighted in our earlier communication, we continue to believe in the gradual withdrawal of monetary stimulus and recommend following Accrual Strategy and Active Duration strategy.
2020 was an eventful year for Fixed income space with RBI providing 135 bps rate cut, supporting the system with ample
liquidity in the second half of the year, RBI’s shift from OMO’s for liquidity to Operation Twist to reduce term premiums,
RBI’s unexpected pause in policy rate cuts in December etc. In the midst of all this, the benchmark 10 year treasury yield
ended the year lower by ~87 bps as compared to last year and settled at 6.55%.
Read the full document to know more.
• RBI reduced the Repo rate by 40 bps to 4.00%
• Reverse Repo rate accordingly is adjusted to 3.35%
• Marginal Standing Facility (MSF) rate and the Bank rate accordingly is
adjusted to 4.25%
• Cash Reserve Ratio (CRR) remains unchanged at 3%
• Statutory Liquidity Ratio (SLR) stands adjusted to 18.00%
Similar to Duration Management (August 2021) | ICICI Prudential Mutual Fund (20)
Does your portfolio have a blend of reasonable stability and potential growth?
Just as how a Sturdy Suspension and Powerful Engine together contribute to a smoother car ride, investing in a combination of Large and Mid cap stocks can offer the best of both worlds – Reasonable Stability + Potential Growth.
Know more: https://bit.ly/3UuS9x8
#ICICIPrudentialMutualFund #LargeCapFund #MidCapFund #MutualFunds #Investment
The rising sun of 2024 brings new hope for global markets! This sun shines a little brighter on the Indian economy as it gets off the tag of a 'fragile economy' to emerge as a robust one. The world economy is headed towards a 'Paradigm Shift' with India leading the way.
Explore this shift further with our Annual Outlook Report 2024!
#ICICIPrudentialMutualFund #AnnualOutlook #ETF
Equity Valuations Perspective | January 2024iciciprumf
Navigate Equity Markets better through our VCTS (Valuations, Cycle, Triggers and Sentiments) framework. The document below highlights the impact of various dynamic variables on the equity market across time periods. Read on to know more!”
#ICICIPrudentialMutualFund #Equity #Investments #MutualFunds
Stepping into 2024 with resilience and foresight!
New year has begun with a Paradigm Shift in trends of global and domestic macros.
While the global economies remain fragile, the Indian economy emerges as robust, defying the label of a fragile economy.
Explore the 2024 Outlook for insights on this Paradigm Shift!
#ICICIPrudentialMutualFund #MutualFunds #Investments #NewYear #2024
While there is some decline in China, there are positive market situations for India. What does that mean for an investor like you? See in December's Monthly Market Outlook here.
#ICICIPrudentialMutualFund #Investment #December2023 #MonthlyMarketOutlook #MutualFunds
Amidst global tensions, the global economies might be taking the strain but Indian economy continues the Goldilocks streak. Take a holistic view at what that might mean for you as an investor with the Monthly Market Outlook.
#ICICIPrudentialMutualFund #MonthlyMarketOutlook
ICICI Prudential Equity Valuation Index | Nov 2023 iciciprumf
Our latest Equity Valuation Index remains in the Neutral Index even after market corrections. But how do you smartly navigate through the market's volatility? Allocating your funds across different classes may help you. Have a look to understand better!
#ICICIPrudentialMutuaFund #Equity #EquityValuationIndex #Market #Investments
How can we prepare for the mood of the market? Use micro indicators for a comprehensive look at the market in this month's Market Outlook!
#ICICIPrudentialMutualFund #MonthlyMarketOutlook #October #Investment #MutualFunds
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Duration Management (August 2021) | ICICI Prudential Mutual Fund
1. Time to move outof Hibernation
Hibernation is a state of minimal activity in animals like bears characterized by low body-
temperature, slow breathing and low metabolic rate. It occurs commonly in winter months.
The important point is that after hibernation the animal should become active again so that it
can store enough energy by consuming food to last through the next winter. Similarly, we
believe at this juncture in fixed income market, the time has come where portfolios should
be managed actively to protect it from interest rate volatility and to benefit from high term
premium.
Why Active Duration now ?
• We are at the fag end of interest rate cut cycle. Hence, it is prudent to keep portfolios
nimble.
• We expect interest rate volatility due to moderation in RBI stance on liquidity*.
• Yield curve steepness : The gap between the long and short end yields of the curve
provides opportunity to create returns by active management of duration.
* Source : RBI Press Release
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
2. What our DebtValuation Index for Duration RiskManagement Suggests?
Data as on July 31, 2021. Debt Valuation Index considers Whole sale Price Index (WPI), Consumer Price Index (CPI),Sensex returns,Gold
returns and Real estate returns over G-Sec yield,Current Account Balance, Fiscal Balance and Crude Oil Movement for calculation.
We remain very cautious on duration as the interest rates are expected to remain volatile
due to RBI normalizing liquidity and upside risk to inflation due to economic recovery
Investment Approach forthe Current Market
A. Active Duration for benefitting from high term premium
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
Aggressive
Highly Aggressive
Very Cautious
Cautious
Moderate
Source: CRISIL Research, Data as on July 31, 2021. Pastperformance may or may not sustain in future
1.76
0
1
2
3
4
5
6
7
8
9
10
Very Cautious
Cautious
Moderate
Aggressive
Highly Aggressive
-3
-2
-1
0
1
2
3
4
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-11
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Term Premium (10 Yr Gsec - 1 Yr Tbill) % Long Term Average Premium %
Average 83 bps
253 bps
3. B. Accrual Strategy to benefit from higher carry provided by good quality spread assets
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
Avg. 91
bps
Avg.54
bps
S
P
R
E
A
D
Avg. 359bps
Source: CRISIL Research, Data as on July 31, 2021. Past performance may or may not sustain in future
Our Portfolio Positioning
• Across our portfolios we aim to manage duration actively
• In short duration schemes, we aim to run Barbell Strategy (combination of high duration
and low duration instrument) to benefit from term premium ((10 Yr Gsec yield over 1 Yr
Tbill yield) and to reduce interest rate volatility
• In Schemes which aim to invest in short end of the yield curve, we have added
exposure towards Floating Rate Bonds (FRB)
• We have added reasonable quality AA Corporate Bond in select portfolios, due to higher
spread premium
3
4
5
6
7
8
9
6 Months 1 Yr 3 Yr 5 Yr
Yields
(%)
AA AAA Gsec Repo Rate
4. Over the last 2-3 months we had added duration to our portfolios due to the following reasons:
1. GDP growth rate slashed: On the back of the outbreak of the second wave and its
connected implications on the overall economy
2. Accommodative stance to continue: RBI has unequivocally hinted that normalization in
monetary policy is not being thought about yet.
3. Yield Curve Control: RBI is actively managing the yield curve with its regular Open Market
Operations (OMOs) along with the recently launched G-Sec acquisition program or G-SAP
program which may not allow yields at the longer end to rise despite government borrowing
and inflation concerns
4. Benefit from Higher Term Premium: Currently, the term premium is at one of the highest
levels seen in the last 10 years at around 250 bps. We have tactically taken exposure on the
longer end of the curve to capture the term premium.
However, with the unlock phase beginning and covid cases declining, growth is expected to
improve and hence we have moderated duration in the month of July
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
Our Duration Management
Scheme Name
(A) (B) (C)
Changein Mod
Duration (C-B)
Mod Duration in Yrs
(Nov 30,2020)
Mod Duration in Yrs
(June 30 ,2021)
Mod Duration in Yrs
(July 31,2021)
ICICI Prudential Liquid Fund 0.10 0.12 0.09 -0.03
ICICI Prudential Money Market Fund 0.33 0.36 0.28 -0.08
ICICI Prudential Ultra Short Term Fund 0.39 0.4 0.33 -0.07
ICICI Prudential Savings Fund 0.89 0.97 0.82 -0.15
ICICI Prudential Floating Interest Fund 1.19 1.25 0.99 -0.26
ICICI Prudential Credit Risk Fund 2.09 1.96 1.92 -0.04
ICICI Prudential Short Term Fund 2.41 2.53 2.4 -0.13
ICICI Prudential Corporate Bond Fund 2.94 2.06 2.31 0.25
ICICI Prudential Banking & PSU Debt Fund 3.30 3.1 3.86 0.76
ICICI Prudential Medium Term Bond Fund 3.23 3.15 2.97 -0.18
ICICI Prudential Bond Fund 5.05 5.38 5.38 0
ICICI Prudential All Seasons Bond Fund 4.34 3.97 4.12 0.15
ICICI Prudential Long Term Bond Fund 7.82 8.74 8.72 -0.02
ICICI Prudential Gilt Fund 7.66 5.13 5.91 0.78
5. Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
Scheme Recommendation – FixedIncome / Arbitrage
Approach Scheme Name Callto Action Rationale
Arbitrage ICICIPrudential Equity Arbitrage Fund
Invest with 3 Months
& above horizon
Spreads at
reasonable levels
Short Duration
ICICIPrudential Savings Fund
ICICIPrudential Ultra Short Term
Fund
ICICIPrudential FloatingInterest
Fund
Invest for parking
surplus funds
Accrual+
Moderate
Volatility
Accrual Schemes
ICICI Prudential Credit Risk Fund
ICICI Prudential Medium Term Bond
Fund
Core Portfolio with>1
Yr investment horizon
Better Accrual
DynamicDuration
ICICIPrudential All Seasons Bond
Fund
LongTerm Approach
with >3 Yrs
investment horizon
Active Duration
and Better
Accrual
6. Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
Riskometers
ICICI Prudential Credit RiskFund (Anopenended debtschemepredominantlyinvestinginAAand
belowrated corporatebonds)is suitable for investors who are seeking*:
Medium term savings
A debt scheme that aims to generate income through investing
predominantly in AA and below rated corporate bonds while
maintaining the optimum balance of yield, safety and liquidity
ICICI Prudential Medium Term Bond Fund (An open ended medium term debt scheme
investing in instruments such that the Macaulay duration of the portfolio is between 3
Years and 4 Years. The Macaulay duration of the portfolio is 1 Year to 4 years under
anticipated) adverse situation is suitable for investors who are seeking*:
Medium term savings
A debt scheme that invests in debt and money market instruments with a view to
maximize income while maintaining optimum balance of yield, safety and liquidity
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ICICI Prudential Gilt Fund (An open ended debt scheme investing in government securities
across maturity) is suitable for investors who are seeking*:
Long term wealth creation
A Gilt scheme that aims to generate income through investment in Gilts of various
maturities.
*Investors should consult their financial advisors if in doubt about whether the product is suitable
for them.
ICICI Prudential Short Term Fund (An open ended short term debt scheme investing in
instruments such that the Macaulay duration of the portfolio is between 1 Year and 3
Years) is suitable for investors who are seeking*:
Short term income generation and capital appreciation solution
A debt fund that aims to generate income by investing in a range of debt and money
market instruments of various maturities.
*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
ICICI Prudential LongTermBond Fund (An open ended debt scheme investing in
instruments such that the Macaulay duration of the portfolio is greater than 7 Years) is
suitable for investors who are seeking*:
Long term wealth creation
A debt scheme that invests in debt and money market instruments with an aim to
maximise income while maintaining an optimumbalance of yield, safetyand liquidity.
*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
7. Riskometers
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets
ICICI Prudential All Seasons Bond Fund (An open ended dynamic debt scheme investing
across duration)is suitablefor investors who are seeking*:
All duration savings
A debt scheme that invests in debt and money market instruments with a view to
maximize income while maintaining optimum balance of yield, safety andliquidity
ICICI Prudential Floating Interest Fund (An open ended debt scheme predominantly
investing in floating rate instruments (including fixed rate instruments converted to
floating rate exposures using swaps/derivatives) is suitablefor investors who are seeking*:
Short term savings
An open ended debt scheme predominantly investing in floating rate instruments
ICICI Prudential Ultra Short Term Fund (An open ended ultra-short term debt scheme investing
in instruments such that the Macaulay duration of the portfolio is between 3 months and 6
monthsis suitable for investors who are seeking*:
Short term regular income
An open ended ultra-short term debt scheme investing in a range of debt and
money market instruments
ICICI Prudential Savings Fund (An open ended low duration debt scheme investing in
instruments such that the Macaulay duration of the portfolio is between 6 months and 12
months) is suitable for investors who are seeking*
Short term savings
An open ended low duration debt scheme that aimsto maximize incomeby
investing in debt and moneymarket instruments while maintaining optimum
balance of yield, safetyand liquidity
ICICI Prudential Equity Arbitrage Fund (Anopenendedscheme investing inarbitrage
opportunities) is suitable for investors who are seeking*
Short Term Income Generation
A hybrid scheme that aims to generate low volatility returns by using arbitrage and
other derivative strategies in equity markets and investments in debt and money
market instruments
ICICI Prudential Banking & PSU Debt Fund (An open ended debt scheme predominantly
investing in Debt instruments of banks, Public Sector Undertakings, Public Financial
Institutions and Municipal Bonds. is suitable for investors who are seeking*:
Short term savings
An open ended debt scheme predominantly investing in Debt instruments of banks,
Public Sector Undertakings, Public Financial Institutions and Municipal Bonds
*Investors should consult their financial advisers if in doubt about whether the product is
suitable for them.
8. Riskometer and Disclaimers
Time to be nimble footed :
Active Duration Management key for
navigating fixed income markets
ICICI Prudential Corporate Bond Fund (An open ended debt scheme predominantly
investing in AA+ and above rated corporate bonds) is suitable for investors whoare
seeking*:
Short term savings
An open ended debt scheme predominantly investing in highest rated corporate
bonds
*Investors should consult their financial advisers if in doubt about whether the product is
suitable for them.
ICICI Prudential Money Market Fund (An open ended debt scheme investing in money
market instruments) is suitable for investors who are seeking*:
Short term savings
A money market scheme that seeks to provide reasonable returns, commensurate
with low risk while providing a high level of liquidity
*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
ICICI Prudential LiquidFund (an open ended liquid scheme) is suitable for investors who are
seeking*:
Short term savings solution
A liquid fund that aims to provide reasonable returns commensurate with low risk
and providing a high level of liquidity
*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
ICICI Prudential Bond Fund (An open ended medium to long term debt scheme investing in
instruments such that the Macaulay duration of the portfolio is between 4 Years and 7
Years. The Macaulay duration of the portfolio is 1 Year to 7 years under anticipated
adverse situation) is suitable for investors who are seeking*:
Medium to Long term savings
A debt scheme that invests in debt and money market instruments with an aim to
maximise income while maintaining an optimumbalance of yield, safetyand liquidity.
*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
"Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis as per SEBI circular
dated October 05, 2020 on Product Labeling in Mutual Fund schemes - Risk-o-meter. Please refer to
https://www.icicipruamc.com/news-and-updates/all-news for more details."
Macaulay Duration :
The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash
flow is determined by dividing the present value of the cash flow by the price.
9. Riskometer and Disclaimers
Mutual Fund investments are subject tomarket risks, readallscheme 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
ICICIPrudential Mutual Fund. Past Performance may or may not be sustained in future.
Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd. (the AMC)
has used information that is pub- licly available, including Budget speech and information developed in-house. The stock(s)/sector(s)
mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future
position in this stock(s). Some of the material used in the document may have been obtained from mem- bers/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 informa- tion. 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 Lim- ited (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 or
investment advice. The recipient alone shall befully responsible/are liable for any decision taken on this material.
Time to be nimble footed :
Active Duration Management for navigating
fixed income markets