We believe that volatility is expected to prevail as the world comes to terms with the evolving COVID-19 situation & its economic fallout. Investors must embrace volatility & be cognizant of their asset allocation while invest.

1. US ECONOMY: US real gross domestic product (GDP)
skyrocketed by 33.1% on an annualized basis in the
third quarter after plunging by 31.4% in the second
quarter. Meanwhile, the US Federal Reserve (Fed) Chair
Jerome Powell warned of a weak US recovery without
sufficient government aid and said providing too much
stimulus wouldn’tbe a problem.
UK: The UK’s economy grew 2.1% in August on a
monthly basis, slower than the 6.4% expansion seen in
July. Bank of England’s policymakers backed negative
interest rates as they felt there was need for extra
firepower to boost the economy following the second
wave of infections which was holding back consumer
spending and suppressing business investment.
JAPAN: The Bank of Japan (BoJ) decided to keep its
monetary policy steady, including a -0.1% target for
short-term interest rates and a pledge to guide long-
term rates around 0%. The BOJ said it expects the
economy to fall 5.5% in the current fiscal year ending
March2021.
CHINA: The economy picked up pace inthe third
quarter with a GDP of 4.9% compared with3.2% growth
in the second quarter. Meanwhile, the People’sBankof
China retained one-year loanprime rate at 3.85% and
the five-year loanprime rate at 4.65%.
EQUITY UPDATE
Nov 2020
Data Source: Crisil Research; * Data till Oct 31, 2020; Source: NSE, BSE; Crisil Research
Data Source: Crisil Research; * Data till Oct 30, 2020, PE- Price to Earnings;
IMF – International Monetary Fund; OECD: Organisation for Economic
Cooperation& Development
Global Markets Sep - 20(%) Current PE 10 Yr Average
US (4.6) 21.7 15.8
UK (4.9) 436.9 18.0
Japan (0.9) 38.8 19.9
Hong Kong 2.8 13.1 10.8
Singapore (1.7) 19.1 12.3
China 3.9 9.3 8.4
INDEX PERFORMANCE: Indianequity indicesended
October on an encouraging note. The benchmarksS&P
BSE Sensex and Nifty 50 rose 4.06% and 3.51%,
respectively, during the month.
INFLATION: Retail inflationbased onthe Consumer
Price Index (CPI) rose to 7.34% in September – the
highest so far in the fiscal, compared with6.69% in
August.
Global MarketUpdate
Indian MarketUpdate
Domestic Markets Oct - 20 (%) Current PE 10 Yr Average
S&P BSE Sensex 4.1 27.55 20.1
NSE Nifty 3.5 31.90 20.4
S&P BSE Auto (2.0) NA 19.9
S&P BSE Bankex 12.5 21.2 17.8
S&P BSE Capital Goods 2.4 65.5 28.6
S&P BSE Consumer Durables (0.8) 60.0 33.0
S&P BSE FMCG (1.2) 31.2 39.1
S&P BSE Healthcare (2.7) 44.3 29.0
S&P BSE IT 5.4 23.9 19.5
S&P BSE Metals (1.2) 34.0 12.0
S&P BSE Mid Cap 1.4 56.1 25.3
S&P BSE Oil & Gas (0.9) 13.2 12.1
S&P BSE PSU 0.4 10.2 12.9
S&P BSE Realty 4.1 27.4 20.1
DOMESTIC DEVELOPMENTS:
Tailwinds: Earlier in the month, the domestic composite
purchasing managers’ index (PMI) numbers and reports
of fall in active Covid-19 cases in India buoyed the
markets. Further, RBI’s liquidity boosting measures, and
its decision to keep the repo rate unchanged and retain
its accommodative stance in its October policy review
induced buying. The government measures to boost
consumer demand also boosted the sentiment. Key
measures announced included Rs 10,000 one-time
special festival advance for government employees and
a tax-free cash voucher scheme for government
employees and others in lieu of their leave travel
concession

2. GLOBAL DEVELOPMENTS:
Tailwinds: Positive global cues, including optimism over
a Covid-19 vaccine, reports of US President Donald
Trump returning to the White House after curing the
infection and upbeat economic cues from China also
augured well for the local indices.
Headwinds: Caution ahead of the US Presidential
elections on November 3, lack of progress on the US
stimulus package and warning from the US Fed chief
that the country’s economic recovery would suffer if the
lawmakers failed to pass a new fiscal package weighed
on the market. Spike in the covid-19 cases globally and
introduction of new lockdown restrictions in the UK and
Europe induced further selling in the market.
SECTORAL IMPACT: S&P BSE sectoral indices ended
mixed in October. Heavy buying was seen in banking,
finance, realty and IT stocks. The S&P BSE BANKEX,
S&P BSE Finance, S&P BSE Realty and S&P BSE IT
indices advanced 5-13%. Capital goods and power
sector shares, too, witnessed massive buying. The S&P
BSE Power and S&P BSE Capital Goods indices rose
around 5% and 2%, respectively. The S&P BSE
Healthcare and S&P BSE Auto indices fell 2.73% and
2.01%, respectively.
Indian MarketUpdate
Outlook & Triggers
Major Global Indices delivered negative returns post being confronted with further spike in COVID-19 infection rates, looming uncertainty
around US Presidential Election outcome and absence of any major stimulus from the US. Indian Equity Markets (Nifty 50 Index) however
ended higher with 3.5% returns. Any further spread of COVID-19 and its potential economic implications, US policies post new
Government formation and any action on fiscal stimulus by the US Government will be closely monitored by markets going forward.
The US economy posted a growth of 33.1% (annualized) in the July-Sep period. Exports and investments rose sharply coupled with an
increase in private spending. However, COVID-19 cases are on the rise and there is no sign of any fiscal impulse. In the Eurozone, many
governments such as Germany, France, Italy announced lockdowns again since COVID-19 infections went up. The European Central Bank
(ECB) left its monetary policy unchanged but assured to address downside risks to growth due to lockdowns imposed by second wave of
COVID infections in its upcoming policy
Indian equities did well as COVID-19 cases continued to decline, Q2FY21 earnings were better than anticipated and Unlock 5.0 guidelines
were implemented in October. MSCI’s announcement of its change in the FPI limit of Indian Companies effective Nov. 30, too cheered
the market. Sectors that posted good Q2FY21 results include Banks, IT, Consumer Staples and Consumer Discretionary. Banks also
stated that the stress on asset quality was low and restructuring would be limited. Economic recovery gained strength with October PMI
manufacturing coming in at 58.9 Vs. 56.8 in Sep, growth in GST collection with revenues crossing 1 tn. mark and pick up in core
industries as indicated by improving High Frequency Indicators
On the macro front, India’s CPI Inflation increased to 7.3% in Sep. IIP contracted 8% in August. Forex Reserves stood at US $560.5 bn as
of October 23. (Source: JP Morgan)
In sectoral trends, Banking and Financials performed well due to impressive Q2FY21 results whereas Energy and Healthcare were key
laggards. (Source: NSE)
Our ‘VCTS’ framework is currently indicating that, Valuations (P/E) - are driven by Mega cap stocks. In terms of Price to Book Value,
valuations seem reasonable. Cycle – Business Cycle is at the bottom, future market Triggers would be the pace of COVID-19 vaccine
development, second wave of infection globally & US Presidential election outcome. Sentiments – around equity as an asset class is
negative as past returns have been muted. We recommend adding equities in a staggered manner with a ‘Long Term Horizon’ while
maintaining Asset Allocation
Flows Oct –20 Sep –20 Aug - 20
FIIs (Net Purchases / Sales) (Rs cr) 19,541 (7783) 47,080
MFs (Net Purchases / Sales) (Rs cr) (15,800) (4,244) (9,310)
Earnings Growth (%) FY20E FY21E FY22E
Sensex 13.9 (0.7) 36
Macro Indicators Latest Update Previous Update
GDP (YoY%)
-23.9%
(1QFY21)
3.1%
(4QFY20)
IIP (YoY%)
-8.0%
(Aug)
-10.4%
(July)
Crude ($ bbl)
37.46
(Sep 30)
42.30
(Sep 30)
Core Sector Growth (YoY%)
0.8%
(Sep 2020)
-7.3%
(Aug 2020)
Trade Deficit ($ mn)
-2,720
(Aug 2020)
--6,770
(July 2020)
Current Account Deficit ($ bn) 19.8 (1QFY21) 0.6 (4QFY20)
FII Holding in Indian Equities (%)#
20.8 (1QFY21) 21.5 (4QFY20)
Note: # FII hldg includesADR/GDR (BSE500 Index); Data Source: Crisil Research; * Data till Oct 31, 2020; CAD: Current AccountDeficit; GDP: Gross
Domestic Product, IIP: India Industrial ProductionFII: ForeignInstitutional Investors; MF-Mutual Fund; E- Estimate

3. Equity ValuationIndex
Our Recommendation
None of the aforesaid recommendations are based on any assumptions. These are purely for reference and the investors are requested to consult their financial advisors
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 Gross Domestic Product
(GDP)
Our Recommendations – Equity Schemes
Lumpsum Investment
Schemes
ICICI Prudential Bluechip Fund
ICICI Prudential Multicap Fund
These Schemes aim to generate capital
appreciation throughparticipation in equities.
Long-Term SIP
Schemes
ICICI Prudential Value Discovery Fund
ICICI Prudential Smallcap Fund
ICICI Prudential Midcap Fund
ICICI Prudential Focused Equity Fund
ICICI Prudential India Opportunities Fund
These schemes aim to generate long term wealth
creationacross variousmarket cycles
Allocation between
Equity, Debt & Other
Asset Classes
ICICI Prudential Balanced Advantage Fund
ICICI Prudential Multi-Asset Fund
ICICI Prudential Asset Allocator Fund (FOF)
These schemes aim to benefitfrom volatility and
canbe suitable for investors aiming to participate
in equitieswith low volatility.
`
We believe that the divergence between Value and Growth stocks continues to prevail. Currently, fundamentally sound value stocks are available at
inexpensive valuations, providing good dividend yield and have better earnings visibility. Hence, we recommend investors to take exposure to
schemes with Value bias – ICICI Prudential Value Discovery Fund, schemes with focus on Future Leaders – ICICI Prudential Focused Equity Fund and
Special Situation theme – ICICI Prudential India Opportunities Fund. Small, midcaps and value oriented stocks over the next few years is
recommended for patientlong term investors.
We also believe that volatility is expected to prevail for some time as the world comes to terms with the evolving COVID-19 situation and its
economic fallout. As an investor, one must embrace volatility and be cognizant of his/her own asset allocation while investing. We continue to
recommend Dynamic AssetAllocationscheme whichaim to benefit from volatility by reducing the overall cyclicality ofthe portfolio
50
70
90
110
130
150
170
Oct-06
Oct-07
Oct-08
Oct-09
Oct-10
Oct-11
Oct-12
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
Oct-18
Oct-19
Oct-20
Aggressively invest in Equities
Neutral
Incremental Money to Debt
Book Partial Profits
107.5
Invest in Equities

4. ICICI Prudential Bluechip Fund is suitable for investors who are seeking*(An open ended
equity scheme predominantly investing in large cap stocks): Moderate
• Long term wealth creation
• An open ended equity scheme predominantly investing in large cap stocks. LOW HIGH
Investors understand that their
principal will be at Moderately High
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem. risk
ICICI Prudential Value Discovery Fund is suitable for investors who are seeking*( An
open ended equity scheme following a value investment strategy): Moderate
• Long term wealth creation
• An open ended equity scheme following a value investment strategy. LOW HIGH
Investors understand that their
principal will be at Moderately High
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem. risk
ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*(An
open ended dynamic asset allocation fund): Moderate
• Long term wealth creation solution
• An equity fund that aims for growth by investing in equity and derivatives. LOW HIGH
Investors understand that their
principal will be at Moderately High
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem. risk
ICICI Prudential Multicap Fund is suitable for investors who are seeking*(An open ended
equity scheme investing across large cap, mid cap, small cap stocks): Moderate
• Long term wealth creation
• An open ended equity scheme investing across largecap, mid cap and small cap stocks. LOW HIGH
Investors understand that their
principal will be at Moderately High
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem. risk
ICICI Prudential Focused Equity Fund is suitable for investors who are seeking*(An open
ended equity scheme investing in maximum 30 stocks across market-capitalisation i.e.
focus on multicap) Moderate
• Long Term Wealth Creation
• An open ended equity scheme investing in maximum 30 stocks across
market-capitalisation.
LOW HIGH
Investors understand that their
principal will be at Moderately High
risk
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem.
Riskometers

5. ICICI Prudential Midcap Fund is suitable for investors who are seeking*(An open ended
equity scheme predominantly investing in mid cap stocks):
Moderate
• Long term wealth creation
• An open-ended equity scheme that aims for capital appreciation by investing in LOW HIGH
diversified mid cap companies. Investors understand that their
principal will be at Moderately High
risk
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem.
ICICI Prudential Smallcap Fund is suitable for investors who are seeking*(An open ended
equity scheme predominantly investing in small cap stocks):
Moderate
• Long term wealth creation
• An open ended equity scheme that seeks to generate capital appreciation by LOW HIGH
predominantly investing in equity and equity related securities of small cap companies. Investors understand that their
principal will be at Moderately High
risk
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem.
ICICI Prudential Asset Allocator Fund (FOF) is suitable for investors who are seeking*(An
open ended fund of funds scheme investing in equity oriented schemes, debt oriented
schemes and gold ETFs/schemes) *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.:
Moderate
• Long Term Wealth Creation
• An open ended fund of funds scheme investing in equity oriented schemes, debt
oriented schemes and gold ETFs/ schemes.
LOW HIGH
Investors understand that their
principal will be at Moderately High
risk
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem.
ICICI Prudential India Opportunities Fund is suitable for investors who are seeking*(An
open ended equity scheme following special situations theme): Moderate
LOW HIGH
Investors understand that their
principal will be at High risk
• Long Term Wealth Creation
• An equity scheme that invests in stocks based on special situations theme.
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem.
ICICI Prudential Multi-Asset Fund is suitable for investors who are seeking*(An open
ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives/
Units of Gold ETFs/units of REITs & InvITs/Preference Shares):
Moderate
• Long term wealth creation
• An open ended scheme investing across asset classes.
LOW HIGH
Investors understand that their
principal will be at Moderately High
*Investorsshouldconsulttheirfinancialadvisorsifindoubt about whether the product is suitableforthem. risk
Riskometers

6. Disclaimer
Mutual Fund investments aresubject to market risks, read all schemerelated 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 sector(s)/stock(s) mentioned in this communication do not constitute any recommenda-
tion of the same and ICICI PrudentialMutualFundmay ormay not have any future position in these sector(s)/stock(s). 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 more details.
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.