This document provides an update on the ICICI Prudential Value Discovery Fund. It discusses the fund's focus on value investing principles of investing in stocks trading below their intrinsic value and maintaining a margin of safety. The fund has overweight positions in pharmaceuticals, power, and software sectors which offer reasonable valuations and earnings visibility. It has an underweight position in banking and financials. The top 10 holdings are also provided.

1. Update on
ICICI Prudential Value Discovery Fund
There are two important principles used when adopting the value investing method for stock selection –
Intrinsic Value and Margin of Safety
 The stocks are selected that trade at a discount to their intrinsic values
 The second important principle is to have a high Margin of Safety. It indicates the
difference between intrinsic value of stock and market value. The higher the difference, the
higher the margin of safety
 There are various ways in which Value stocks can be identified. They can be identified by
financial metrics such as the Price to Book Value (P/B) or Price to Earnings (P/E) ratio, etc.
 Studies have shown that famous value investors have underperformed the markets during
roughly one-third of their investing career.1
This under-performance to achieve long-term
outperformance is a critical part of value investing. The reason for the temporary under
performance is that the value picks bought, are perceived in a negative light initially owing
to various perceptions and hence undervalued. Most of the times, markets discover the
true value of the stock while at times, it takes longer than expected. This can lead to
significant periods of underperformance.
 It has been observed in the past that investing in such potential ideas when they are
undervalued, leads to better alpha generation
1
“Super Investors of Graham and Doddsville” is an article written by Warren Buffett promoting value investing
VALUE INVESTING
Intrinsic Value Margin of Safety
Understanding Value Investing
Current Yield Curve

2. Update on
ICICI Prudential Value Discovery Fund
Focusing on sector and stocks with:
1. Valuations comfort
2. Having better risk-reward benefit
3. With better earnings visibility
Our view on key focus sectors (The overweight/underweight position is compared to Nifty 500 Value 50
(benchmark)):
1. Overweight Pharmaceuticals :
a. Valuations are reasonable
b. Sector has underperformed the broader market is the last few years
c. Earnings visibility is high
d. Domestic focused select Pharma companies are poised to do well
e. Good defensive play during times of high volatility
2. Overweight Power :
a. Valuations cheap
b. High dividend yield
c. Fixed ROE (Return on Equity) business
d. High earnings visibility
e. Good defensive play during times of high volatility
ICICI Prudential Value Discovery
Fund
Captures stocks with high margin of safety
Flexible in moving across
market capitalizations to explore
attractive investment opportunities
Follows benchmark agnostic
sector allocation approach.
Seeks to identify stocks whose prices are
low-relative to their historic performance,
earnings, book value & cash flow potential
Portfolio Positioning
Current Yield Curve

3. Update on
ICICI Prudential Value Discovery Fund
3. Overweight Software
a. Comfortable Valuations
b. Strong balance sheet and high cash to survive demand disruption
c. Global presence and better diversification
d. Good earnings visibility
4. Underweight Banking & Financials
a. Valuations high, the sector represent almost close to 40% of the broader index
b. Slowdown in economy due to COVID-19 spread may hurt the sector, due to higher NPA
(Non- Performing Assets) and lower NIM (Net Interest Margin)
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).
 Post the correction, valuations have turned reasonable and the scheme has begun deploying its
cash into stocks and sectors which may provide better upside in the coming years
 The scheme is well positioned to handle extreme volatility, due to higher exposure towards stocks/
sectors which are currently providing high margin of safety and are more defensive.
 We believe going forward, select growth stocks which have driven the markets in the last few
years may underperform and value as a theme may outperform as these stocks are providing high
margin of safety and better earnings visibility
Company Name % to NAV
Infosys Ltd. 9.62%
Sun Pharmaceutical Industries Ltd. 9.06%
Mahindra & Mahindra Ltd. 6.86%
NTPC Ltd. 6.83%
Bharti Airtel Ltd. 6.58%
ITC Ltd. 4.32%
PI Industries Ltd. 4.11%
Wipro Ltd. 3.66%
Indian Oil Corporation Ltd. 3.08%
Grasim Industries Ltd. 2.83%
Data as on Mar 31, 2020, 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). Past performance may or may not sustain in the future.
View going forward
Current Yield Curve
Portfolio Details – Top 10 Holdings (%)
Current Yield Curve

4. Update on
ICICI Prudential Value Discovery Fund
Scheme Name Type of Scheme
ICICI Prudential Value Discovery Fund 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.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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 debt securities 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 debt securities. 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 investment pattern, strategy and risk factors.
The information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to buy or sell or solicitation of any offer to buy or sell
any securities or financial instruments in the United States of America ("US") and/or Canada or for the benefit of US persons (being persons falling within the definition of the term
"US Person" under the US Securities Act, 1933, as amended) or persons residing in Canada.
Type of Scheme
Riskometers
Disclaimer