The IDFC Banking & PSU Debt Fund is an open-ended debt scheme that predominantly invests in debt instruments issued by banks, public sector undertakings, public financial institutions, and municipal bonds. The fund currently follows a 'roll down' investment approach and aims to maintain a portfolio of high quality AAA and equivalent rated instruments. It provides diversification across many high quality issuers within the banking and PSU space. The fund is suitable for investors seeking optimal returns over the short to medium term through investments in debt and money market instruments issued by public sector entities.
Credit Profile of ICICI Prudential Mutual Fund's Fixed Income Schemesiciciprumf
In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (the AMC) has used information that is publicly
available, including information developed in-house. 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. The AMC (including its affiliates), 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 of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any
decision taken on this material. All figures and other data given in this document are dated and the same may or may not be relevant in future. The information
contained herein should not be construed as a forecast or promise nor should it be considered as an investment advice. 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. The
sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any
future position in these sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the
provisions of the Scheme Information document of the scheme. Please refer to the SID for more details.
Credit Profile of ICICI Prudential Mutual Fund's Fixed Income Schemesiciciprumf
In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (the AMC) has used information that is publicly
available, including information developed in-house. 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. The AMC (including its affiliates), 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 of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any
decision taken on this material. All figures and other data given in this document are dated and the same may or may not be relevant in future. The information
contained herein should not be construed as a forecast or promise nor should it be considered as an investment advice. 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. The
sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any
future position in these sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the
provisions of the Scheme Information document of the scheme. Please refer to the SID for more details.
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.
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.
Aim to make the most of the potential of smaller companies by investing in their beginnings with ICICI Prudential Smallcap Index Fund. More information at https://bit.ly/3B6BmmK
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable, Business Cycle has bottomed out and FPIs are withdrawing money suggesting that it is a good time to invest in equities
• 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%
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.
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.
Aim to make the most of the potential of smaller companies by investing in their beginnings with ICICI Prudential Smallcap Index Fund. More information at https://bit.ly/3B6BmmK
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable, Business Cycle has bottomed out and FPIs are withdrawing money suggesting that it is a good time to invest in equities
• 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%
1. IDFC BANKING & PSU DEBT FUND
*The scheme is currently following a ‘roll down’ investment approach on a tactical basis. This means that ordinarily the average maturity of the scheme’s portfolio is unlikely to
increase significantly and may be expected to generally reduce with the passage of time, subject to intermittent periods of volatility in the maturity profile owing to AUM
movement and market conditions. The approach being followed currently is tactical in nature and would be subject to change depending on investment opportunities available
without prior notice.
Fund Features: (Data as on 28th
February'21)
Category: Banking and PSU
Monthly Avg AUM: `17,669.60 Cores
Inception Date: 7th March 2013
Fund Manager: Mr. Anurag Mittal (w.e.f.
15th May 2017)
Standard Deviation (Annualized):2.65%
Modified duration: 1.77 years
Average Maturity: 2.00 years
Macaulay Duration: 1.86 years
Yield to Maturity: 4.99%
Benchmark: NIFTY Banking & PSU Debt
Index (w.e.f 11/11/2019)
Minimum Investment Amount: `5,000/-
and any amount thereafter
Exit Load: Nil (w.e.f. 12th June 2017)
Options Available: Growth, Dividend -
Daily, Fortnightly, Monthly
(Reinvestment), Quarterly (Payout),
Annual (Payout) & Periodic (Payout &
Reinvestment)
Maturity Bucket:
PORTFOLIO (28 February 2021)
Name Rating Total (%)
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
TS CAREFULLY.
L SCHEME RELATED D
$$
For details please refer Notice (https://www.idfcmf.com/uploads/090520171306No-18-Change-in-Scheme-features-of- IDFC-Banking- Debt-Fund.pdf)
Standard Deviation calculated on the basis of 1 year history of monthly data
Corporate Bond 83.08%
NABARD AAA 9.43%
Power Finance Corporation AAA 7.93%
Indian Railway Finance Corporation AAA 6.19%
REC AAA 6.00%
HDFC AAA 5.98%
Axis Bank AAA 5.72%
National Highways Auth of Ind AAA 5.56%
Hindustan Petroleum Corporation AAA 5.50%
LIC Housing Finance AAA 5.28%
Small Industries Dev Bank of India AAA 5.03%
National Housing Bank AAA 3.75%
Reliance Industries AAA 3.29%
Export Import Bank of India AAA 2.88%
ICICI Bank AAA 2.70%
Power Grid Corporation of India AAA 2.26%
Housing & Urban Development Corporation AAA 1.78%
NTPC AAA 1.41%
% NAV
• A portfolio that emphasizes on high quality
instruments. currently 100% AAA and equivalent
instruments.
• By investing in one single fund you get to diversify your
allocation into multiple high quality instruments issued
by banks, PSUs (Public Sector Undertakings), PFIs
(Public Financial Institutions) and Municipal Bonds.
• Ideal to form part of ‘Core’ Bucket – due to its high
quality and low to moderate duration profile
An open ended debt scheme predominantly investing in
debt instruments of banks, Public Sector Undertakings,
Public Financial Institutions and Municipal Bonds.
11.21
76.65
12.14
0 10 20 30 40 50 60 70 80 90
Upto 1 year
1-3 years
Above 3 years
ASSET QUALITY
AAA Equivalent
100.00%
2. PORTFOLIO (28 February 2021)
Name Rating Total (%)
NHPC AAA 0.99%
Larsen & Toubro AAA 0.89%
Indian Oil Corporation AAA 0.49%
Tata Sons Private AAA 0.02%
Government Bond 8.85%
7.37% - 2023 G-Sec SOV 2.66%
7.16% - 2023 G-Sec SOV 1.64%
7.32% - 2024 G-Sec SOV 1.33%
6.84% - 2022 G-Sec SOV 1.22%
5.22% - 2025 G-Sec SOV 0.98%
6.18% - 2024 G-Sec SOV 0.35%
8.13% - 2022 G-Sec SOV 0.30%
7.68% - 2023 G-Sec SOV 0.18%
7.72% - 2025 G-Sec SOV 0.12%
7.8% - 2021 G-Sec SOV 0.06%
Certificate of Deposit 1.80%
Export Import Bank of India A1+ 0.87%
Axis Bank A1+ 0.78%
Bank of Baroda A1+ 0.14%
Commercial Paper 0.87%
Export Import Bank of India A1+ 0.56%
NABARD A1+ 0.28%
Reliance Industries A1+ 0.02%
State Government Bond 0.72%
9.25% Haryana SDL - 2023 SOV 0.31%
5.41% Andhra Pradesh SDL - 2024 SOV 0.14%
5.68% Maharashtra SDL - 2024 SOV 0.09%
8.62% Maharashtra SDL - 2023 SOV 0.06%
7.93% Chattisgarh SDL - 2024 SOV 0.06%
7.77% Gujarat SDL - 2023 SOV 0.03%
5.93% ODISHA SDL - 2022 SOV 0.02%
8.48% Tamilnadu SDL - 2023 SOV 0.01%
8.10% Tamil Nadu SDL - 2023 SOV 0.003%
Zero Coupon Bond 0.63%
LIC Housing Finance AAA 0.63%
Net Cash and Cash Equivalent 4.05%
Grand Total 100.00%
This product is suitable for investors who are seeking*:
• To generate optimal returns over short to medium term
• Investments predominantly in debt & money market instruments
issued by PSU, Banks & PFI
*Investors should consult their financial advisors if in doubt
about whether the product is suitable for them.