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  • 1. The Forgotten Story Infrastructure FundsMonday, 8 October 12
  • 2. Collective Expertise of 2007 ! In 2007 we thought: ! “Only roads will be built – No car will run on it” ! “Power & Energy is the essentials of life - Medicine & FMCG are not going to be consumed much” ! “Construction will happen but no consumer durable will be sold”Monday, 8 October 12
  • 3. But Actual Performance of indices from Dec 2007 to Oct 2012Monday, 8 October 12
  • 4. Collective expertise of 2012 In 2012 collective opinion is ! Only cars will be sold but no road will be built. ! Only FMCG / Medicines are important for lives, Power & Energy (oil & gas) are not essential. ! Consumer appliances is necessity but Construction will not be required.Monday, 8 October 12
  • 5. Performance of Mutual fund Themes in this period ICICI Pru FMCG & ICICI Pru Infrastructure Fund * Above mentioned schemes are for illustrative purpose.Monday, 8 October 12
  • 6. FMCG UP by 99% Infra Down by -28%Monday, 8 October 12
  • 7. Today FMCG is in Fashion Infrastructure is OutdatedMonday, 8 October 12
  • 8. In fashion & Out dated When Clothes are in Fashion they become expensive & When outdated they disappear from stores When Mutual fund themes are in fashion they are overvalued & When Outdated they disappear from recommendation list & are available cheapMonday, 8 October 12
  • 9. ICICI Pru Infrastructure Fund Infrastructure Fund Average P/E (Valuation) : 13 While Sensex P/E : 17.75 Infrastructure Fund Price/Book Value : 1.96 While Sensex Price/Book Value : 2.95 Highly Undervalued sector Infrastructure Fund Divided Yield : 2.10 While Sensex Dividend Yield : 1.58Monday, 8 October 12
  • 10. Opportunity Just Re-rating of Infra P/E (13) from is current valuation level to Sensex P/E (17.75) will be return of 36%Monday, 8 October 12