{"id":748,"date":"2020-02-11T12:46:43","date_gmt":"2020-02-11T12:46:43","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=748"},"modified":"2020-02-13T05:46:21","modified_gmt":"2020-02-13T05:46:21","slug":"need-to-see-countercyclical-flows-in-debt-mutual-funds-mr-s-naren-icici-prudential-amc","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/02\/11\/need-to-see-countercyclical-flows-in-debt-mutual-funds-mr-s-naren-icici-prudential-amc\/","title":{"rendered":"Need to see countercyclical flows in debt mutual funds- Mr S Naren, ICICI Prudential AMC"},"content":{"rendered":"<p><strong>Update\u00a0on the Indian Equity Market:<\/strong><\/p>\n<p>On Monday, NIFTY closed -0.55% lower. Among the sectoral indices, Metal (-3.0%), Auto (-2.5%), Media(-1.6%) closed lower. None of the sectoral indices closed on a positive note. The biggest gainers were UPL(+4.8%), Bajaj Finance (+1.6%), and Kotak Bank (+1.2%) whereas Zee Entertainment (-7.2%), M&amp;M (-7.2%), and Tata Steel (-5.9%) ended with losses.<\/p>\n<p><u>E<\/u><u>dited e<\/u><u>xcerpts\u00a0<\/u><u>of\u00a0<\/u><u>an interview<\/u><u>\u00a0with<\/u><u>\u00a0Mr S Naren, Executive Director and\u00a0<\/u><u>Ch<\/u><u>ief Investment\u00a0<\/u><u>O<\/u><u>fficer, ICICI Prudential AMC with CNBC-TV18<\/u><u>:<\/u><\/p>\n<ul>\n<li>Mr Naren said the recent policy that the Reserve Bank of India (RBI) has come up with of giving term repo, may act as a trigger. Any bank that has surplus government securities gets easy access to cheap money to do onward lending.<\/li>\n<li>This may bring down rates which may act as a route to give good returns on credit funds.<\/li>\n<li>He further saidif valuations are attractive, cycle is attractive and people are not willing to look at the asset class in a big way then one should not bother about triggers, automatically trigger will come and money will be made.<\/li>\n<li>Speaking on telecom sector he said, as long as we are dependent on telecom, the few survivors should do better because the amount of money that people spend on telecom each month is high.<\/li>\n<li>There is a lot of opportunity in India and he said, it is better if we have 3 survivors in a big country like India and all the 3 should have a superb outlook for the next decade or two.<\/li>\n<li>About the flows into\u00a0mutual fund, he said theinvestors in India have been behaving brilliantly.\u00a0Whenever markets go up the flows drop and whenever markets go down flows go up.<\/li>\n<li>SIPs are stable. Itis\u00a0only the debt side of business that\u00a0is\u00a0not having countercyclical flows.<\/li>\n<li>There is a need to see countercyclical flows in debt schemes as equity schemes because there are opportunities which are being missed.<\/li>\n<li>The debt mutual funds are equally important part in every investor\u2019s asset allocationaccording to him.<\/li>\n<li>The company is successful in getting money in asset allocator, fund of fund and categories like balanced advantage but target of getting mega funds in debt mutual fund is not achieved.<\/li>\n<\/ul>\n<p>Consensus Estimate (source: market screener and\u00a0<a href=\"http:\/\/investing.com\/\">investing.com<\/a>\u00a0websites)<\/p>\n<ul>\n<li>The closing price of ICICI Bank was \u20b9 535\/- as on 10-February-20. It traded at 32x\/ 18x\/ 15x the consensus earnings estimate of \u20b9 16.6\/ 29.0\/ 35.5 for FY20E\/FY21E\/FY2E respectively.<\/li>\n<li>Consensus target price of \u20b9 624\/- implies a PE multiple of 18x on FY22E EPS of \u20b9 35.5\/-.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update\u00a0on the Indian Equity Market: On Monday, NIFTY closed -0.55% lower. Among the sectoral indices, Metal (-3.0%), Auto (-2.5%), Media(-1.6%) closed lower. None of the sectoral indices closed on a positive note. The biggest gainers were UPL(+4.8%), Bajaj Finance (+1.6%), and Kotak Bank (+1.2%) whereas Zee Entertainment (-7.2%), M&amp;M (-7.2%), and Tata Steel (-5.9%) ended [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[97],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/748"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=748"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/748\/revisions"}],"predecessor-version":[{"id":750,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/748\/revisions\/750"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}