- The document discusses the launch of the ICICI Prudential Equity Savings Fund - Series 1, a close-ended equity scheme that aims to generate capital appreciation by investing in stocks specified under the Rajiv Gandhi Equity Savings Scheme. - It will invest in 20-25 stocks of companies that are expected to see expansion in returns on equity over the next 3 years due to factors like improving economy, regulatory changes, industry dynamics, or company-specific reasons. - The fund seeks to identify opportunities in companies that have gone through a downturn in returns but are now positioned to recover as the macroeconomic and business environments improve.

1. Equity Savings Fund Series1
NFO Period: January 20, 2014 to February 07, 2014
The Indian economy has been going through a rough patch with Gross Domestic Product (GDP) & Index of
Industrial Production (IIP) growth declining and Fiscal Deficit & Inflation soaring high. Such macro headwinds and
various industry and company specific micro factors have caused equity markets, in general, and some very good
quality, large companies, in particular, to be shunned by investors.
These companies could be ones which are best poised for a bounce-back at the first sight of an improving
economy; a favorable regulatory change; changing industry dynamics or a change which is very specific to the
company itself. Such companies with outlook for improving profits or Return on Equity (ROE) are expected to be
good investment opportunities in today’s tough environment. The opportunity becomes even more compelling
given the strong linkage between the country’s GDP growth, the ROE of these large companies and their price
performance.
Linkage between GDP growth, ROE and market performance
10
25000
10000
14
12
3
10
20000
5000
0
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
FY05
FY04
Sensex ROE (%, LHS)
16
4
FY03
14.0
15000
5
16.0
18
6
18.0
20
7
20.0
22
8
22.0
24
9
24.0
India real GDP growth
(% yoy, RHS)
Sensex ROE (%, LHS)
S&P BSE Sensex
Source: Edelweiss Securities Ltd
Opportunity for investors in current equity markets:
Opportunity in companies which have gone through a phase of ROE suppression due to various macro and
micro factors and are now at the bottom of the cycle. Factors leading to possible turn-around:
Regulatory changes
• Deregulation of diesel prices
• Industry-friendly regulation in telecom
Economic Leverage
• Stable political environment
• Global recovery
Favourable Industry Dynamics
• Improved competitive dynamics in the industry
Company Specific Factors
• Increase in market share
• Cheaper cost of leverage

2. Introducing ICICI Prudential Equity Savings Fund – Series 1
ICICI Prudential Equity Savings Fund - Series 1 is a 3 year close ended equity scheme. The fund portfolio
would comprise of focused 20-25 stocks#.
#The number of stocks provided is to explain the investment philosophy and the actual number may go up or down depending on then
prevailing market conditions at the time of investment
The fund aims to:
• Identify companies which are likely to see expansion in ROE over next 3 years period.
• Identify companies which are likely to gain from improving economy, a favourable regulatory change,
change in industry dynamics or company specific factors.
• Be adequately diversified, while not restricting it to benchmark sector weights.
Scheme Features
Type of scheme
A Close ended equity scheme
Investment Objective
The primary investment objective of the Scheme is to seek to generate capital
appreciation, from a portfolio that is constituted of equity securities which are specified as
eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS). The Scheme may
also invest a certain portion of its corpus in money market instruments from time to time.
There can be no assurance that the investment objective of the Scheme will be realized.
Options
Direct Plan – Growth and Dividend Option • Regular Plan –Growth and Dividend Option
Minimum Application Amount Rs.5,000 (plus in multiple of Rs.10)
Entry & Exit Load
Not Applicable
Benchmark Index
CNX 100 Index
Fund Manager
Manish Gunwani & Venkatesh Sanjeevi
What is Rajiv Gandhi Equity Savings Scheme?
Rajiv Gandhi Equity Savings Scheme or RGESS is a new equity tax advantage savings scheme for
equity investors in India, with the stated objective of "encouraging the savings of the small investors
in the domestic capital markets." The Scheme qualifies under Rajiv Gandhi Equity Savings Scheme
(RGESS), 2012.
Note: Please refer to the RGESS, 2012 notified by the Central Government on November 23, 2012 and SEBI Circular number CIR/
MRD/DP/32/2012 dated December 06, 2012 for additional details.
This product is suitable for investors who are seeking*:
• Long term wealth creation solution
• A close-ended equity scheme that seeks to generate capital appreciation by investing in Equity
securities which are specified as eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS)
HIGH RISK
(BROWN)
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Note: Risk may be represented as:
(BLUE) investors understand that
their principal will be at low risk
(YELLOW) investors understand that
their principal will be at medium risk
(BROWN) investors understand that
their principal will be at high risk
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: In the preparation of the material contained in this document, 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 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
Distributed by:
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.
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.