Valuations are not cheap but the business cycle remains in the nascent phase. Read our Monthly Market Outlook for July 2021 to understand more about Equity Markets and Fixed Income Markets.
2. Global Indices Performance
2
• Global Indices showed a mixed
trend as economies saw targeted
and on-going vaccination drives
being implemented
• Indian Equity Markets (Nifty 50
Index) gained by 1% during the
month, due to decline in COVID-19
cases, pick-up in vaccination drive
and ease of lockdown like
restrictions in some states.
Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Eurozone - Euronext 100; Hong Kong - HangSeng; US - Dow Jones; Singapore - Strait Times; Russia - RTS Index; Indonesia - Jakarta
Composite Index; U.K. - FTSE; South Korea - Kospi; Brazil - Ibovespa Sao Paulo Index; Indonesia – Jakarta Composite Index; Switzerland – Swiss Market Index; Taiwan – Taiwan Stock Exchange Corporation; India – S&P BSE
Sensex; Returns in % terms. GDP – Gross Domestic Product. Data Source: MFI & ACEMF, Returns are absolute returns for the index calculated between May 31, 2021 – June 30, 2021. Past performance may or may not sustain in
future. COVID – Coronavirus Disease. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html
4
3
2 2
1
0 0
0 0
-1 -1 -1 -1 -1
-2
-2
-3
-2
-1
0
1
2
3
4
5
Switzerland
Taiwan
Russia
South
Korea
India
Europe
France
Japan
Germany
UK
US
Indonesia
China
Brazil
Singapore
Hong
Kong
Absolute
Returns
(%)
Returns Performance - June 2021
3. India – Sectoral Indices Performance
3
In sectoral trends,
Technology and
Consumer durables
were key contributors,
while Bank and Power
were key laggards
All indices are of S&P BSE and carry the prefix of S&P BSE; Abbreviated CD - S&P BSE Consumer Durables; CG - S&P BSE Capital Goods; FMCG - S&P BSE Fast Moving Consumer Goods; HC - S&P BSE Health Care; Infra. - S&P BSE India
Infrastructure; IT - S&P BSE Information Technology, NBFC – Non-banking Finance Companies. Data Source: MFI, ACEMF ; Returns are absolute returns for the TRI variant of the index (except Infrastructure Index) calculated between May
31, 2021 – June 30, 2021; Past performance may or may not sustain in future. The sector(s)/stock(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 sector(s)/stock(s). MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.
9
6
4
3 3 3
2 2 2 1 1
0
-2 -2 -2 -3
-4
0
4
8
12
IT
CD
HC
Basic
Mat.
FMCG
Realty
CG
Telecom
Infra
Auto
Metal
Finance
Bankex
Power
Oil
&
Gas
Energy
Absolute
Returns
(%)
Returns Performance - June 2021
5. The second wave of COVID in India appears to be moderating with decline in
daily cases , deaths and positivity rate
COVID 2.0 – Declining Cases
5
Source: JM Financial. Data as June 30, 2021. 7DMA – 7 Day Moving Average
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
31-Mar-20
30-Apr-20
31-May-20
30-Jun-20
31-Jul-20
31-Aug-20
30-Sep-20
31-Oct-20
30-Nov-20
31-Dec-20
31-Jan-21
28-Feb-21
31-Mar-21
30-Apr-21
31-May-21
30-Jun-21
Daily Covid Cases and Deaths
Daily Cases 7DMA Daily Deaths 7DMA - RHS
0%
5%
10%
15%
20%
25%
31-Jul-20
31-Aug-20
30-Sep-20
31-Oct-20
30-Nov-20
31-Dec-20
31-Jan-21
28-Feb-21
31-Mar-21
30-Apr-21
31-May-21
30-Jun-21
All India Positivity Rate
All India Positivity Rate (7DMA)
6. Vaccine supply has been picking-up with improvement in daily vaccinations
COVID 2.0 – Vaccine Supply
6
Source: Citi Research, MHFW, CEIC Data Company Limited. Data as on June 29, 2021 Source: Source: IIFL Research. Data as on June30,2021
0
1
2
3
4
5
6
7
8
26-Jan-21
09-Feb-21
23-Feb-21
09-Mar-21
23-Mar-21
06-Apr-21
20-Apr-21
04-May-21
18-May-21
01-Jun-21
15-Jun-21
29-Jun-21
In Millions Daily Vaccination
Daily vaccine administered, 7-day average
0
4
8
12
16
20
24
0
5
10
15
20
25
30
DL
GJ
KL
CH
RJ
HR
KA
AP
MH
OD
PB
WB
MP
JH
AS
TN
BR
UP
Vaccine Supply picking up across all states
Doses per 100 person (LHS) Total Doses (mn, RHS)
(doses per 100 persons)
All India doses/100 ppl
(mn doses)
DL –Delhi, GJ-Gujarat, KL- Kerela, CH- Chandigarh, RJ – Rajasthan, HR- Haryana, KA- Karnataka, AP- Andhra Pradesh, MH – Maharashtra, OD – Odisha, PB – Punjab, WB- West Bengal, MP- Madhya Pradesh, JH – Jharkhand, AS –
Assam, TN – Tamil Nadu, BR – Bihar, UP- Uttar Pradesh
7. Indicators like Google Mobility and E-Way Bills have started improving in the month of June as the unlock
phase began across States
COVID 2.0 – Impact on Economic Activity
7
Index is average of visits and length of stay at Retail & Recreation, Grocery & Pharmacy, Parks, Transit Stations and
Workplaces. Source: Google, Citi Research.
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
0
10
20
30
40
50
60
70
80
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
E-Way Bills Generated
E-way Bills (mn) 2 Year CAGR
-20
0
20
40
60
80
100
120
India
WB
AS
SK
DN
PB
LK
OD
MN
TL
UP
PD
MZ
KA
HR
JK
MP
HP
DL
% Change in google mobility index: 16-May-21 to 24-Jun-21
Mobility
improving
Mobility
worsening
Improving Mobility across States
Source: CEIC, IIFL Research. Data as on June 6, 2021
DL –Delhi, GJ-Gujarat, KL- Kerela, CH- Chandigarh, RJ – Rajasthan, HR- Haryana, KA- Karnataka, AP- Andhra Pradesh, MH – Maharashtra, OD – Odisha, PB – Punjab, WB- West Bengal, MP- Madhya Pradesh, JH – Jharkhand, AS – Assam, TN – Tamil Nadu, BR – Bihar, UP- Uttar Pradesh
9. Our Framework – ‘VCTS’
9
Market V aluations
P/E or P/B helps in
ascertaining whether
the market is expensive
or cheap
Business C ycle
Indicators like capacity
utilization / credit growth
help in gauging the
strength of business cycle
T riggers
Triggers are events
which can chart the
course of market direction
(positive/negative)
S entiments
Sentiments helps in
understanding investors
affinity towards the
equity market
Buy – Valuations
Cheap
Sell – Valuations
Expensive
Buy – Cycle is
weak/recovering
Sell – Cycle is Strong
Negative Triggers –
e.g. COVID-19,
Positive Triggers –
e.g. earnings growth
Buy – Negative
Sentiments
Sell – Positive
Sentiments
Valuations are not cheap. Business Cycle remains in the nascent stage. Future market triggers would be how the COVID-19 situation
evolves with new Delta variant cases getting reported, pace & quality of vaccination drive, impact of stop/start regime on COVID related
restrictions, a stickier inflation profile on the back of rise in crude prices and US Fed trajectory on taper. Sentiments are not euphoric,
but appears high in certain pockets
10. Valuations are not cheap at this juncture
Market Valuations
10
Source: Edelweiss Research. Data as of June 30, 2021 for Marketcap to GDP and Data as on FY 2020 for Corporate Profit to GDP.
29
0
5
10
15
20
25
30
35
40 Nifty 50 P/E
Nifty 50 PE Long Term Average
Average 19
108
10
38
66
94
122
150
Jun 01 Jun 05 Jun 09 Jun 13 Jun 17 Jun 21
(%)
Market Cap to GDP (%)
Indian Market Cap to GDP (%) Long Term Average (%)
Average 69
11. 4.7
5.4
6.3
7.3
7.8
5.5
6.5
6.3
4.8
4.3 4.4
3.5
3.0 3.5 2.4
2.8
1.9
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
Corporate Profit to GDP (%)
Average of 4.7%
Union Budget 2021-2022 clearly indicated Govt.’s intent to bolster growth with a projected increase in
capital expenditure & spending which may lead to increase in demand
Business Cycle
11
Source: Edelweiss Research and ICICI Securities, Data as on April 30, 2021 for Credit Growth and FY 20 for Corporate Profit to GDP (%)
Business Cycle remains at the bottom due to COVID impact
-3
-2
-1
0
1
2
3
4
5
6
7
8
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Industry Credit Growth (YoY)
Industry Credit Growth (YoY)
12. 12
Why should the business cycle pick up?
Global Economies have expanded their balance sheets manifold in the last decade
thereby increasing liquidity. This is positive for Emerging Markets
Source: Edelweiss Research, Morgan Stanley Research. Money Supply Data as on May 31, 2021 and Balance Sheet data as on June 30, 2021
4
6
8
10
12
14
16
May/10
Mar/12
Jan/14
Nov/15
Sep/17
Jul/19
May/21
Global broad money supply growth
(YoY%)
0
50
100
150
200
250
Jun-99
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Central
Bank
Balance
Sheet
as
a
%
of
GDP
Central Bank Balance Sheet as a % of GDP
ECB US Fed BOJ
13. 13
Source: Morgan Stanley Research. Data as of June 30, 2021. RE – Revised Estimate, BE – Budgeted Estimate,
Capex – Capital Expenditure.
30.8%
26.2%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
F2010
F2011
F2012
F2013
F2014
F2015
F2016
F2017
F2018
F2019
F2020
F2021RE
F2022BE
Govt. Capex, YoY%
Why should the business cycle pick up?
Domestic Fiscal Stimulus and Domestic Liquidity bodes well for the business cycle
(7)
(6)
(5)
(4)
(3)
(2)
(1)
0
1
2
3
Jan-16 Oct-16 Jul-17 Apr-18 Feb-19 Nov-19 Aug-20 May-21
RBI Liquidity Injected
(7dma, Rs. tn)
System Liquidity in Deficit
System Liquidity in Surplus
Source: CMIE, IIFL Research. 7dma – 7 Day Moving Average. Data as on May 31, 2021
14. 14
Source: Morgan Stanley Research
Why should the business cycle pick up?
Key Reforms Measures introduced by the Government
Production Linked Incentive
Insolvency & Bankruptcy Code
Corporate Tax Rate
Goods & Services Tax
Land Reforms
Boost domestic manufacturing with an aim to bring import substitution &
increase Global Market Share
The Insolvency & Bankruptcy Code 2016 considered one of the biggest
insolvency reforms in India, enabled insolvency resolution in a time bound
manner
To encourage ‘Make in India’ policy, corporate tax rate was reduced from
25% to 15% for new manufacturing firms in line with other Asian
Countries
This tax, introduced in 2016, simplified tax system by subsuming all
indirect taxes which is easy to administer
Creation of Land banks to make land easily identifiable for industrial
projects coupled with provision of details about logistics
15. Union Budget 2021-2022 clearly indicated Govt.’s intent to bolster growth with a projected increase in
capital expenditure & spending which may lead to increase in demand
Why should the business cycle pick up?
15
Source: Source: CMIE, IIFL Research. Note: Sample of selected 269 companies, which had consistent
data FY10 onwards. Data as on March 31, 2021
Improving Corporate Profitability and Corporate Deleveraging
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Gross Debt to Ebitda (x) – BSE 500 Companies
6
8
10
12
14
16
18
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
Aggregate Aggregate Ex-Financials
(%) Return on Equity - BSE500 companies
Source: Source: CMIE, IIFL Research. Data as on March 31, 2021
16. Union Budget 2021-2022 clearly indicated Govt.’s intent to bolster growth with a projected increase in
capital expenditure & spending which may lead to increase in demand
Why should the business cycle pick up?
16
Source: IIFL Research, Data as on March 31, 2021
Healthy balance sheets of financial institutions to aid credit growth going forward
5
10
15
20
FY16 FY17 FY18 FY19 FY20 FY21
Private Banks PSU Banks NBFCs
Tier 1 Capital Ratio (%)
Increasing Tier 1
Capital Ratio shows
improving health of
financial institutions
17. Triggers to Current Market Rally
We believe the current market rally may last till below triggers come into action
and that Macros are going to be utmost important going forward
17
US INFLATION
CRUDE
The US has expressed
its concern in the
recent FOMC Meeting
US Treasury Yields
reaching 2%
Crude Oil touching
60-65$/bbl may lead
to high inflation
US 10Y TREASURY
YIELDS
CURRENTLY AT 1.47%
Currently at 75, further upside
may lead to equity market
volatility
Currently at 75, further upside
may lead to equity market
volatility
Evolving and need to be monitored
carefully for more data points and
US Fed commentary
Data as on June 30, 2021. Source: CRISIL Research
18. Union Budget 2021-2022 clearly indicated Govt.’s intent to bolster growth with a projected increase in
capital expenditure & spending which may lead to increase in demand
Sentiments
18
Source: IIFL Research, FII – Foreign Institutional Investment, MF – Mutual Fund, Flows data as on June 30, 2021.
Sentiments are not euphoric, but appears high in certain pockets
10 11.8 10.7 6.4 5 5
9 9.9 10.2
10.3 10 7
23 20.6 16.2
15.4 15
11
33 35.9
38.6
39 39
45
21 16.9 18.1 21.5 23 25
4 4.8 6.2 7.3 8 7
0
20
40
60
80
100
FY16 FY17 FY18 FY19 FY20 FY21
Others Professional Investors/ Family Offices
Individual Investors FII
DII Corporates
The share of individual investors in the cash market has increased
from 45% in FY 21 v/s 39% in FY20
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Portfolios Flow (US$ Bn)
FII Equity (US $ Bn) MF Equity (US $ Bn)
Source: B&K Research, NSE. Data as on March 31, 2021
19. Summary of our ‘VCTS’ Framework
19
Valuations are not cheap
Business Cycle is still in the early phase
Neither aggressive nor negative on equities : Middle-of-the-road approach
Prefer schemes with flexibility and diversification like asset allocation
schemes - ICICI Prudential Flexicap Fund & ICICI Prudential Asset Allocator
Fund
Important trigger – How US Fed changes it’s stance, Inflation trajectory and
US 10-Year Govt. Bond Yield
21. Our Equity Outlook
21
• Economic recovery though seems to have been delayed due to COVID-19 second wave but is well on track given
favourable macro environment, govt. policies, various stimulus measures by Global central banks & resilient
domestic economic indicators
• With Govt.’s focus mainly on Growth, we believe economic environment is becoming more conducive for a
Business Cycle recovery and hence for equities over long run
• We continue to remain positive on sectors which are closely linked to economy like Banks, Capital Goods,
Infrastructure, Metals/Mining etc.
• Market volatility too may continue given uncertainty related to COVID and Global Central Bank policies
• Macro economic environment is going to be critical and we may witness continued change in sectoral leaderships
• Market rally in the last couple of years was narrow & driven by select Growth stocks. Going forward, we expect
broad-based reasonably valued companies to perform
• Our recommendations can be summed up using the acronym A-B-C-D (Please refer next slide for more details)
22. Investment Themes: ABCD
ICICI Prudential Asset Allocation Strategies – ICICI
Prudential Asset Allocator Fund (FOF) and Multi-
Asset Strategies - ICICI Prudential Multi-Asset Fund
ICICI Prudential Balanced Advantage Fund –
Dynamically manages equity & debt allocation basis
Market Valuations
ICICI Prudential Business Cycle Fund – Invest in
scheme which is nimble enough to move across
sectors/marketcap as Business Cycles change
22
A
B D
C
The asset allocation and investment strategy will be as per Scheme Information Document.
Strategies which are available at a Discount to the
broader markets – ICICI Prudential Focused Equity Fund,
ICICI Prudential Value Discovery Fund, ICICI Prudential
India Opportunities Fund, ICICI Prudential Dividend Yield
Equity Fund, ICICI Prudential Infrastructure Fund
23. Our Top SIP Recommendations
SIP
ICICI Prudential
Asset Allocator
Fund (FOF)
ICICI Prudential
Balanced
Advantage Fund
ICICI Prudential
Business Cycle Fund
23
SIP – Systematic Investment Plan. The asset allocation and investment strategy will be as per Scheme Information Document.
ICICI Prudential
Multi-Asset Fund
24. Our Long term SIP Recommendations with Freedom SIP
24
SIP
ICICI Prudential
Value Discovery
Fund
ICICI Prudential
Smallcap Fund
ICICI Prudential
Midcap Fund
ICICI Prudential
Focused Equity Fund
SIP – Systematic Investment Plan, SWP – Systematic Withdrawal Plan. ICICI Prudential Freedom SIP is an optional feature that allows initial investments through SIP, switch to another scheme after a pre- defined tenure and
SWP post that. ^The SWP will be processed either till Dec2099 or till units are available in target scheme, whichever is earlier. Please read the terms and conditions in the application form before investing .For source and
target scheme names, refer the Application Form of ICICI Prudential Freedom SIP. ICICI Prudential Mutual Fund reserves the right to make changes in the source and target schemes. Investor may please note that ICICI
Prudential Freedom SIP is different from ICICI Prudential Freedom SWP.The asset allocation and investment strategy will be as per Scheme Information Document. *For more information visit www.icicipruamc.com
ICICI Prudential Freedom SIP* is a combination of Smart Features, to help investors achieve their Financial Goals. Freedom SIP allows investors
to switch the SIP investments to a target scheme, post completion of the SIP tenure & monthly SWP will continue from the target scheme
25. Our Equity Valuation Index
Our Equity Valuation Index
highlights that valuations
are not cheap and
recommends equity
investing only with a long
term perspective coupled
with ‘Dynamic Asset
Allocation Scheme’ that
aims to manage equity
exposure basis market
valuations
25
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, Data as of June 30, 2021
50
70
90
110
130
150
170
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Aggressively invest in Equities
Neutral
Incremental Money to Debt
Book Partial Profits
124.3
Invest in Equities
26. Value Investing through
ICICI Prudential Value Discovery Fund
26
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
PORTFOLIO POSITIONING
27. ICICI Prudential Business Cycle Fund –
Navigating Business Cycles with Nimbleness
27
With macro environment expected to be highly dynamic, there arises a need for scheme that is
nimble enough to participate across different Business Cycles at any given point in time
Output
Capacity
Growth
Trend
Growth
Recession
Slump
Recovery
Time
The asset allocation and investment strategy will be as per Scheme Information Document. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme.
28. History suggests –
Sectoral Leadership has changed with every Crisis
28
2000 (Dot Com Bubble) 2008 (Lehman Crisis) Now (COVID-19 Pandemic)
Sector Weightage
CONSUMER GOODS 27.5%
OIL & GAS 24.2%
IT 12.2%
FINANCIAL SERVICES 10.1%
PHARMA 7.2%
Sector Weightage
OIL & GAS 19.3%
TELECOM 9.7%
FINANCIAL SERVICES 8.9%
POWER 5.5%
CONSTRUCTION 3.6%
Sector Weightage
FINANCIAL SERVICES 37.2%
IT 17.4%
OIL & GAS 11.7%
CONSUMER GOODS 11.1%
AUTOMOBILE 5.3%
Nifty 50 Index Constituents – The Great Churn
Aim to invest in potential future leaders
Data as of June 30, 2021. Source: NSE. 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)/sector(s). Since
COVID-19 is an on-going pandemic, further change in sectoral leadership can be expected
29. ICICI Prudential Focused Equity Fund –
Focused on future potential leaders
29
Portfolio Data is as of June 30, 2021. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
Macro Vs. Micro
The portfolio currently focuses on micro theme by investing in companies which
have strong fundamentals and better earnings
Overall Macro Recovery
The scheme has exposure towards sectors which may benefit from overall
macro recovery like pick up in Credit Growth and Capex cycle, Real Estate, etc.
Disruption and Dislocation
The scheme has good exposure to companies which may benefit from
temporary disruption due to COVID-19 impact or which can tide over the
dislocation of supply chain
Large Financial Companies
The portfolio also has good exposure towards large financial companies which
may benefit from economic recovery cycle (better credit growth + lower credit
cost) and from consolidation in PSU space
30. 30
ICICI Prudential Asset Allocator Fund (FOF) aims to allocate across Equity, Debt & Gold
basis relative valuations
Source: MFI. Net Equity levels are as on month ends,. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. Data as on
June 30, 2021. The asset allocation and investment strategy of the Scheme will be as per Scheme Information Document. Past performance may or may not sustain in future. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit
http://www.icraonline.com/legal/standard-disclaimer.html. Investors may please note that they will be bearing the recurring expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment.
36%
83%
39%
41,254
29,468
52,483
25,000
30,000
35,000
40,000
45,000
50,000
30%
40%
50%
60%
70%
80%
90%
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
S&P
BSE
Sensex
Levels
ICICI
Prudential
Asset
Allocator
Fund
(FOF)
Net
Equity
Levels
S&P BSE Sensex Levels Vs ICICI Prudential Asset Allocator Fund (FOF) net equity
exposure (%)
Net Equity Level S&P BSE Sensex
Invests in different Asset Classes–
Better equipped to handle Turning Points
31. 31
Multi-Asset Allocation Strategy –
An array of opportunities across asset classes
Data as of June 30, 2021, Equity portion is excluding the derivative exposure and including preference shares. The portfolio has exposure of 8.76% to Gold ETCDs (Exchange Traded Commodity Derivatives)
74%
4%
3%
18%
Equity
Gold
Units of Real Estate Investment Trusts
(REITs) & Infrastructure Investment
Trusts (InvITs)
Debt Holdings & Net Current Assets
32. Why ICICI Prudential Multi-Asset Fund Now?
32
* Consult your tax advisor for more details. REITs – Real Estate Investment Trusts; InvITs – Infrastructure Investment Trusts. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document
of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
• Valuations – Equity Valuations are not cheap. Also, the way forward will depend on various macro factors
like inflation, interest rates, economic activity pick-up, timely vaccine roll-out, Global Central Banks fiscal
and monetary stance etc.
• Interest Rates – The interest rates are lower, hence debt as an asset class is expected to deliver average
returns
• Macro Uncertainty – In such a scenario of rising uncertainty with regards to various macro factors and low
interest rate environment, allocating funds in various asset classes is recommended
• The strategy of ICICI Prudential Multi-Asset Fund is to invest in various asset classes with an aim to provide:
Capital appreciation by investing in equities,
Stability and Accrual returns by investing in debt,
Hedge against inflation by investing in gold
Yield enhancement by investing in REITs & InVITs and by writing covered call option.
• The scheme maintains its equity taxation* even after taking exposure to various asset classes
33. 33
ICICI Prudential Balanced Advantage Fund aims to allocate between Equity & Debt basis market valuations
Source: BSE India & MFI, Data as of June 30, 2021. The in-house valuation model starts from March 2010 onwards. The asset allocation and investment strategy will be as per Scheme Information Document. MFI Explorer is a tool
provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html Scheme benchmark is Crisil Hybrid 50+50 – Moderate Index. BAF – IPRU Balanced Advantage Fund
41254
29468
52483
45.74
73.70
39
30
40
50
60
70
80
28000
32000
36000
40000
44000
48000
52000
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
ICICI
Prudential
Balanced
Advantage
Fund
Net
Equity
Fund
Levels
(%)
S&P
BSE
Sensex
S&P BSE Sensex Levels vis-a-vis ICICI Prudential Balanced Advantage Fund Net Equity Exposure (%)
Sensex Level Net Equity Exposure %
Dynamic Asset Allocation Approach –
Better equipped to handle Turning Points
35. About ICICI Prudential Flexicap Fund
35
Staggered Manner of deployment in Equity based on
various internal asset allocation & valuation models
Adequate capping on stock concentration
Middle of the diversified space (moderate) as the
market-cap allocation would be managed
dynamically
Marketcap Allocation
Deployment Approach
Stock Diversification
Risk Reward
Based on the in-house Marketcap model
Please note, The In-house marketcap model factors are not exhaustive, the scheme may or may not use the above factors. In order to manage the scheme and to ensure that the Scheme attains its
investment objective, the AMC has developed an in-house model to invest across market caps in a structured manner. The asset allocation and investment strategy will be as per Scheme Information
Document. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme.
37. Longer end of the yield curve remained in-check due to RBI absorbing supply and devolvement of auctions
Yield Curve Movement
37
Data as on July 1, 2021, CRISIL Research, MPC – Monetary Policy Committee
3
4
5
6
7
1M 3M 6M 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs
Yield Curve – Gsec (%)
01-Jul-21 01-Jun-21
3
4
5
6
7
8
1M 3M 6M 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs
Yield Curve – Corporate Bond (%)
01-Jul-21 01-Jun-21
38. RBI absorbed nearly a fourth of FY 21 borrowings and devolvement jumped by 47x, reflecting aggressive yield
management
RBI remains active in Yield Management
38
Data as on June 30, 2021, Source : RBI Annual Report, IIFL Research
36
1,306
390
FY20 FY21
Partial Devolvement Full Devolvement
(Rs. bn)
39. GDP & Credit Growth
39
Source: GDP - MOSPI. Data as of Mar 31, 2021. Credit Growth – RBI. Data as of May 7, 2021
Higher Fiscal support with credit pick-up may result in stronger recovery. This may come with a risk of
elevated inflation and likely result in interest rate volatility
7.0% 6.6% 5.8% 5.0% 4.5% 4.7%
3.1%
-23.9%
-7.5%
0.4% 1.6%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Q2
FY19
Q3
FY19
Q4
FY19
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY20
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY21
India GDP Data
4%
8%
12%
16%
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Credit Growth (YoY)
40. Inflation & Commodity + Food Prices
40
Source: Morgan Stanley. Data as of June 30, 2021 for CRB Index and May 31, 2021 for FAO Food Price Index. CRB – Commodity Research Bureau Index, FAO – Food and Agriculture Organization
Inflation needs to be monitored closely with Food prices and Commodity prices inching higher
90
100
110
120
130
May-16
Oct-16
Mar-17
Aug-17
Jan-18
Jun-18
Nov-18
Apr-19
Sep-19
Feb-20
Jul-20
Dec-20
May-21
FAO Food Price ndex
340
390
440
490
540
Jun-16
Oct-16
Feb-17
Jun-17
Oct-17
Feb-18
Jun-18
Oct-18
Feb-19
Jun-19
Oct-19
Feb-20
Jun-20
Oct-20
Feb-21
Jun-21
CRB Commodity Index
41. Our Fixed Income View
41
• RBI may have to support growth trajectory and on the other hand RBI would need to keep an eye on
upside risk to inflation.
• The growth recovery got disrupted due to second wave, but we expect it to pick-up
• Inflation trajectory need to be monitored closely
• We continue to believe for a gradual withdrawal of monetary stimulus.
• The decision to continue with the GSAP program is positive for continued orderly evolution of yield
curve and may remain supportive for longer term yields.
• As communicated earlier, we believe that we are at the fag-end of interest rate cycle.
• In the current phase, more nimble and active duration management strategy is recommended
• We continue to recommend Accrual strategy with an aim to benefit from higher carry.
MPC – Monetary Policy Committee, RBI – Reserve Bank of India., GSAP -Government Securities Acquisition Program, Source : RBI Policy Document
42. Fixed Income Space – Pick your side!
42
Instrument Type
Yields (%)
31-Dec-19 01-July-21
AAA(3 Year) 6.80 5.49
A1+(6Mnth CD) 5.56 3.70
Repo Rate 5.15 4.00
Gsec(10 Year) 6.51 6.04
AA(3 Year) 7.85 8.16
A(3 Year) 9.47 9.62
Source: CRISIL Research, Data as on July 01, 2021, CD – Certificate of Deposit, bps – basis points, Past performance may or may not sustain in future
131
186
115
47
-31
-15
-50
0
50
100
150
200
250
AAA(3
Year)
A1+(6Mnth
CD)
Repo
Rate
Cut
Gsec(10
Year)
AA(3
Year)
A(3
Year)
Rate Transmission (bps) for from 31-Dec-2019
Value Zone
Expensive Zone
43. Some Basics with illustrations
43
Steeper the yield curve, higher the term premium,
which may make the longer end of the
yield curve more attractive
Yield 1
Yield 2
Yield 3
Rate
(%)
Duration (Years)
Term Premium
Higher the spread premium, higher would be the risk
reward benefit to move to higher spread assets
Instrument Name Yield (%) Premium (%)
3 Year -GSEC X -
3 Year- AAA Y Y minus X
3 Year- AA Z Z minus X
Credit Spread/Spread Premium
44. 3
4
5
6
7
8
9
6 Months 1 Yr 3 Yr 5 Yr
Yields
(%)
AA AAA Gsec Repo Rate
Current Scenario
44
Currently, the term premium is at one of the highest
levels seen in the last 10 years
Term Premium
Currently, the spread premium is reasonably high
compared to repo rate
Credit Spread/Spread Premium
Source: CRISIL Research, Data as on June 30, 2021. Past performance may or may not sustain in future
Avg. 92 bps
Avg. 57
bps
S
P
R
E
A
D
Avg. 375 bps
-3
-2
-1
0
1
2
3
4
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Term Premium (10 Yr Gsec - 1 Yr Tbill) % Long Term Average Premium %
Average 82 bps
230 bps
45. 3.2
3.5
3.9
4.7 4.7
5.6
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
ICICI Prudential
Overnight Fund
ICICI Prudential Liquid
Fund
ICICI Prudential
Money Market Fund
ICICI Prudential
Savings Fund
ICICI Prudential Ultra
Short Term Fund
ICICI Prudential
Floating Interest Fund
YTM-30-June-2021 (%)
Product Approach & Recommendations –
Surplus Parking Space
45
Maintain Duration and add spread assets to the portfolio
Repo Rate
Reasonable carry zone over repo
Data as of June 30, 2021., Past performance may or may not sustain in future. This graph is used to indicate current YTM and does not indicate in any manner performance of the scheme. The area highlighted in green
denotes YTM above the repo rate.
46. Product Approach & Recommendations –
Short Term Parking Space
46
Maintain Duration and add spread assets to the portfolio
Data as of June 30, 2021., Past performance may or may not sustain in future. This graph is used to indicate current YTM and does not indicate in any manner performance of the scheme. The area
highlighted in green denotes YTM above the repo rate.
Repo Rate
Modified
Duration :
3.2 Yrs.
Modified
Duration :
4.0 Yrs.
5.13
5.85 5.59
6.97
6.39 7.02
3.0
4.0
5.0
6.0
7.0
8.0
9.0
ICICI Prudential
Corporate Bond Fund
ICICI Prudential
Banking & PSU Debt
Fund
ICICI Prudential Short
Term Fund
ICICI Prudential
Medium Term Bond
Fund
ICICI Prudential All
Seasons Bond Fund
ICICI Prudential Credit
Risk Fund
YTM -30-June-2021 (%)
Reasonable carry zone over repo
Lower carry zone over repo
47. Portfolio Positioning
47
• Across our portfolios we aim to manage duration actively
• In short duration schemes, we aim to run Barbell Strategy to benefit from term premium
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
48. Why Active Duration now ?
48
• 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.
• High term premium (difference
in yield between the long and
short end of the curve) provides
opportunity to create returns by
active management of duration
The above graph is for illustration purpose only.
49. Scheme Name
(A) (B) (C)
Change in Mod
Duration (C-B)
Mod Duration in Yrs
(Nov 30,2020)
Mod Duration in Yrs
(May 31 ,2021)
Mod Duration in Yrs
(June 30,2021)
ICICI Prudential Liquid Fund 0.10 0.12 0.12 0
ICICI Prudential Money Market Fund 0.33 0.35 0.36 0.01
ICICI Prudential Ultra Short Term Fund 0.39 0.37 0.4 0.03
ICICI Prudential Savings Fund 0.89 1.05 0.97 -0.08
ICICI Prudential Floating Interest Fund 1.19 1.33 1.25 -0.08
ICICI Prudential Credit Risk Fund 2.09 1.93 1.96 0.03
ICICI Prudential Short Term Fund 2.41 2.74 2.53 -0.21
ICICI Prudential Corporate Bond Fund 2.94 1.96 2.06 0.1
ICICI Prudential Banking & PSU Debt Fund 3.30 3.11 3.1 -0.01
ICICI Prudential Medium Term Bond Fund 3.23 3.18 3.15 -0.03
ICICI Prudential Bond Fund 5.05 5.23 5.38 0.15
ICICI Prudential All Seasons Bond Fund 4.34 4.02 3.97 -0.05
ICICI Prudential Long Term Bond Fund 7.82 8.09 8.74 0.65
ICICI Prudential Gilt Fund 7.66 5.18 5.13 -0.05
Active Duration Management
49
Data as on June 30, 2021
50. Our Duration Management Strategy
50
Over the last 2-3 months we had added duration to our portfolios due to the following reasons:
1. GDP growth rate getting slashed due to second wave
2. RBI Accommodative stance to continue until growth picks-up
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
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 230 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 June.
51. Scheme Name
Cash* +
Gsec^
AAA/A1+ AA Below AA-
YTM
Modified
Duration
(% Holding) (% Holding) (% Holding)
ICICI Prudential Overnight Fund 100.0% 0.0% 0.0% 0.0% 3.2% 1 Day
ICICI Prudential Liquid Fund 48.9% 51.1% 0.0% 0.0% 3.5% 45 Days
ICICI Prudential Money Market Fund 31.1% 68.9% 0.0% 0.0% 3.9% 133 Days
ICICI Prudential Ultra Short Term Fund 24.1% 38.7% 35.1% 2.2% 4.7% 147 Days
ICICI Prudential Savings Fund 59.1% 29.8% 11.2% 0.0% 4.7% 353 Days
ICICI Prudential Floating Interest Fund 55.8% 20.9% 22.9% 0.4% 5.6% 457 Days
ICICI Prudential Corporate Bond Fund 30.0% 70.0% 0.0% 0.0% 5.1% 2.1 Yrs
ICICI Prudential Short Term Fund 38.1% 43.3% 18.6% 0.0% 5.6% 2.5 Yrs
ICICI Prudential Banking & PSU Debt Fund 29.1% 51.1% 19.8% 0.0% 5.9% 3.1 Yrs
ICICI Prudential Medium Term Bond Fund 24.3% 13.6% 62.1% 0.0% 7.0% 3.2 Yrs
ICICI Prudential Credit Risk Fund#
19.5% 5.4% 56.1% 15.3% 7.0% 2.0 Yrs
ICICI Prudential All Seasons Bond Fund 47.0% 14.5% 38.5% 0.0% 6.4% 4.0 Yrs
Maintain Duration & Add Spread Assets
51
Spread Assets
Data as on June 30, 2021, Past performance may or may not be sustained in future, * Includes TREPS & Net Current Assets, ^ Includes Treasury Bills, # - Excludes unrated which stands at 3.8%
52. Our Debt Valuation Index for Duration Risk Management
52
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
Data as on June 30, 2021. Debt Valuation Index considers WPI, CPI, Sensex returns, Gold returns and Real estate returns over G-Sec yield, Current Account Balance, Fiscal Balance, Credit Growth and Crude Oil
Movement for calculation.
Very Cautious
Cautious
Moderate
Aggressive
Highly Aggressive
1.65
0
1
2
3
4
5
6
7
8
9
10
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Very Cautious
Cautious
Moderate
Aggressive
Highly Aggressive
53. Scheme Recommendations – Fixed Income/Arbitrage
53
Approach Scheme Name Call to Action Rationale
Arbitrage ICICI Prudential Equity Arbitrage Fund
Invest with 3 Months &
above horizon
Spreads at
reasonable levels
Short Duration
ICICI Prudential Savings Fund
ICICI Prudential Ultra Short Term Fund
ICICI Prudential Floating Interest 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
Dynamic Duration ICICI Prudential All Seasons Bond Fund
Long Term Approach
with >3 Yrs investment
horizon
Active Duration
and Better Accrual
54. Our Equity Schemes
54
Scheme Name Type of Scheme
ICICI Prudential Bluechip Fund An open ended equity scheme predominantly investing in large cap stocks
ICICI Prudential Large & Mid Cap Fund An open ended equity scheme investing in both large cap and mid cap stocks.
ICICI Prudential Midcap Fund An open ended equity scheme predominantly investing in mid cap stocks.
ICICI Prudential Smallcap Fund An open ended equity scheme predominantly investing in small cap stocks.
ICICI Prudential Value Discovery Fund An open ended equity scheme following a value investment strategy.
ICICI Prudential Multicap Fund An open ended equity scheme investing across large cap, mid cap, small cap stocks.
ICICI Prudential India Opportunities Fund An Open Ended Equity Scheme following Special Situations theme
ICICI Prudential Business Cycle Fund An open ended equity scheme following Business Cycles based investing theme
ICICI Prudential Focused Equity Fund
An open ended equity scheme investing in maximum 30 stocks across market-
capitalization i.e. focus on multicap
ICICI Prudential Dividend Yield Equity Fund An open ended equity scheme predominantly investing in dividend yielding stocks
ICICI Prudential Infrastructure Fund An open ended equity scheme following infrastructure theme
55. Our Hybrid Schemes / Fund of Funds Scheme
55
Scheme Name Type of Scheme
ICICI Prudential Asset Allocator Fund (FOF)*
An open ended fund of funds scheme investing in equity oriented schemes,
debt oriented schemes and gold ETFs/schemes.
Scheme Name Type of Scheme
ICICI Prudential Balanced Advantage Fund An open ended dynamic asset allocation fund
ICICI Prudential Regular Savings Fund An open ended hybrid scheme investing predominantly in debt instruments
ICICI Prudential Equity Savings Fund An open ended scheme investing in equity, arbitrage and debt.
ICICI Prudential Equity & Debt Fund
An open ended hybrid scheme investing predominantly in equity and equity related
instruments
ICICI Prudential Multi-Asset Fund
An open ended scheme investing in Equity, Debt and Exchange Traded Commodity
Derivatives/units of Gold ETFs/units of REITs & InvITs/Preference shares
*Investors may please note that they will be bearing the recurring expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment.
56. Our Fixed Income Schemes
56
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
Scheme Name Type of Scheme
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 months.
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.
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.
ICICI Prudential Credit Risk Fund An open ended debt scheme predominantly investing in AA and below rated corporate bonds.
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).
ICICI Prudential All Seasons Bond Fund An open ended dynamic debt scheme investing across duration.
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
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
ICICI Prudential Corporate Bond Fund An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds.
ICICI Prudential Money Market Fund An open ended debt scheme investing in money market instruments
ICICI Prudential Liquid Fund An open ended liquid scheme
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
ICICI Prudential Gilt Fund An open ended debt scheme investing in government securities across maturity
ICICI Prudential Overnight Fund An open ended debt scheme investing in overnight securities
ICICI Prudential Long Term Bond Fund An open ended debt scheme with Macaulay duration greater than 7 years
57. Riskometers
57
ICICI Prudential Multi-Asset Fund is suitable for investors whoare seeking*:
Long term wealth creation
An open ended scheme investing across asset classes.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Equity & Debt 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 capital appreciation/income
Investing in equity and equity related securities and debt instruments.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Bluechip Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme predominantly investing in large cap stocks.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
58. Riskometers
58
ICICI Prudential Value Discovery^ Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme following a value investment strategy
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Large & Mid Cap Fund is suitable for investors whoare seeking*:
Long term wealth creation
An open ended equity scheme investing in both largecap and mid cap stocks
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Credit Risk Fund 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
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Regular Savings Fund is suitable for investors who are seeking*:
Medium to long 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
^Investors are requested to take note of proposed changes in fundamental attributes of the scheme and proposed merger with ICICI Prudential Value Fund - Series 18 and ICICI Prudential Value Fund - Series 19 w.e.f. May 17, 2021
and June 24, 2021 respectively
59. Riskometers
59
ICICI Prudential Medium Term Bond Fund 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 advisers if in doubt about whether the product is suitable for them
ICICI Prudential Short Term Fund 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 advisers if in doubt about whether the product is suitable for them
ICICI Prudential All Seasons Bond Fund is suitable for investors who are seeking*:
All durationsavings
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Smallcap Fund is suitable for investors who are seeking*:
Long Term wealth creation
An open ended equity scheme that seeks to generate capital appreciation by predominantly investing in equity and equity related
securities of small cap companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
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
60. Riskometers
60
ICICI Prudential Floating Interest Fund is suitable for investors who are seeking*:
Short term savings
An open ended debt scheme predominantly investing in floating rate instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
ICICI Prudential Ultra Short Term Fund is 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
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
ICICI Prudential Midcap Fund is suitable for investors who are seeking*:
Long Term wealth creation
An open-ended equity scheme that aims for capital appreciation by investing in diversified mid cap companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
ICICI Prudential India Opportunities Fund (The scheme is suitable for investors who are seeking*)
Long term wealth creation
An equity scheme that invests in stocks based on special situations theme.
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Equity Savings Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended 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 forthem
61. Riskometers
61
ICICI Prudential Multicap Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme investing across largecap, mid cap and small cap stocks.
*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
An open ended low duration debt scheme that aims to maximize income by investing in debt and money market instruments
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 Banking & PSU Debt Fund 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.
ICICI Prudential Corporate Bond Fund 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.
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
62. Riskometers
62
ICICI Prudential Money Market Fund 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.
•Long Term wealth creation
•An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETF/schemes.
*Investorsshouldconsulttheirfinancialadvisorsif in doubtaboutwhetherthe productis suitablefor them.
ICICI Prudential Asset Allocator Fund (FoF) (An open ended fund of funds scheme investing in equity oriented schemes, debt oriented
schemes and gold ETFs/ schemes) is suitable for investors who are seeking*:
Investors may please note that they will be bearing the recurring expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment.
ICICI Prudential Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across market-capitalisation
i.e focus on multicap) is suitable for investors who are seeking*:
• Long term wealth creation
• An open ended equity scheme investing in maximum 30 stocks across market-capitalisation.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Gilt Fund 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.
63. Riskometers
63
ICICI Prudential Liquid Fund (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 Overnight Fund (an open ended debt scheme investing in overnight securities) is suitable for investors who are
seeking*:
Short term savings solution
An overnight fund that aims to provide reasonable returns commensurate with low risk and providing a high level of liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Long Term Bond Fund 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 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 Bond Fund 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 optimum balance of
yield, safety and liquidity.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
64. Riskometers
64
ICICI Prudential Business Cycle Fund (An open ended equity scheme following business cycles based investing theme) is suitable for
investors who are seeking*:
Long Term wealth creation
An equity scheme that invests in Indian markets with focus on riding business cycles through dynamic allocation between various
sectors and stocks at different stages of business cycles
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Dividend Yield Equity Fund (An open ended equity scheme predominantly investing in dividend yielding stocks) suitable
for investors who are seeking*:
Long Term wealth creation
An open ended equity scheme that aims for growth by primarily investing in equity and equity related instruments of dividend yielding companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Equity Arbitrage Fund (An open ended scheme investing in arbitrage 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
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Infrastructure Fund (An open ended equity scheme following Infrastructure theme) is suitable for investors who are seeking*
Long Term Wealth Creation
An open ended equity scheme that aims for growth by primarily investing in companies belonging to infrastructure & allied sectors
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
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 Labelling in Mutual Fund schemes - Risk-o-meter. Please refer to
https://www.icicipruamc.com/news-and-updates/all-news for more details.
65. Disclaimer
65
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. 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 be fully responsible/are liable for any decision taken on this material.
ICICI Prudential Flexicap Fund (An open ended dynamic equity scheme investing across large
cap, mid cap & small cap stocks) is suitable for investors who are seeking*:
Long Term wealth creation
An open ended dynamic equity scheme investing across large cap, mid cap & small cap stocks
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.