Monthly market outlook for may 2019

The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Monthly Market Outlook
May 2019
Equity & Fixed Income Outlook

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors & should not be circulated to investors/prospective investors.
Global Indices Performance
• German markets rose by 7.1%
during the month owing to a
decline in unemployment rate
and a spurt in overall Eurozone
GDP in the first quarter.
• China Markets were in red as
the Purchasing Managers Data
contracted further pointing to
slower growth in second
quarter
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. Data Source: MFI; Returns are
absolute returns for the PRI variant of the index calculated between March 29, 2019 – April 30, 2019. Past performance may or may not be sustained in future 2
7.1
5.8
5.0
4.4 4.2 4.2
3.1 3.1 2.9
2.4 2.2 2.2
1.0 0.9
-0.2 -0.4
-1
0
1
2
3
4
5
6
7
8
Germany
Singapore
Japan
France
Europe
Russia
Switzerland
Taiwan
SouthKorea
US
HongKong
UK
Brazil
India
Indonesia
China
Returns(%)
Returns Performance - April 2019

Sectoral Indices Performance - India
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; Returns are absolute returns for the TRI variant of the index calculated between March 29, 2019 – April 30, 2019; Past performance may or may not be sustained in future
3
• IT Sector outperformed
owing to weak currency,
buybacks and strong Q4
FY19 numbers
• Telecom underperformed
on the back of weak Q4
FY19 results
6.4
1.6 1.4 1.2
0.6 0.2 0.1 0.1
-0.3
-1.8 -2.1 -2.4 -2.4
-3.2 -3.3
-5.0-6
-4
-2
0
2
4
6
8 IT
Energy
Metal
BasicMaterials
Oil&Gas
FMCG
Auto
CD
HC
Finance
Infra
CG
Bankex
Power
Realty
Telecom
Returns(%)
Returns Performance - April 2019

EQUITY OUTLOOK:
LONG TERM GROWTH STORY REMAINS INTACT
ALBEIT WITH A BUMPY RIDE
4

Bumpy Ride Ahead (Triggers to watch out for)
5
 General Election Outcome
 Budget to be presented by the new government
 Re-balancing of MSCI Indices
 Monsoon
 Crude price volatility
 FII flows trend
 Rich Valuations
FII – Foreign Institutional Investor

Source: BSE India, Past performance may or may not be sustained in future.
Pre- & Post-Election Markets
6
4,200
4,600
5,000
5,400
5,800
6,200
6,600
Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04
S&PBSESensexLevels
Pre- and Post-election 2004
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
S&PBSESensexLevels
Pre- and post-election 2009
20,000
21,000
22,000
23,000
24,000
25,000
26,000
S&PBSESensexLevels
Pre- and Post-election 2014
- Divides the chart into pre- and
post-election period
Markets can be volatile
around elections, invest in
Dynamic Asset Allocation/
Balanced Advantage Fund
category to benefit from
such volatility.

Monsoon Expectations
7
Source: Edelweiss Research. *Long Period Average
Possibility of El-Nino can
have adverse impact on
monsoon, which may lead
to volatility in the markets
Monsoon (June-Sep) Year Rainfall (% of LPA*)
2008 98
2009 77
2010 98
2011 102
2012 93
2013 105
2014 88
2015 86
2016 97
2017 95
2018 91
2019 ?

MSCI Index Re-Balancing
8
MSCI to announce the
outcome of its Semi-annual
Index Review Process on
15th May
Saudi Arabia and Argentina
expected to be included in
the MSCI EM Index
Owing to China „A‟ share weight increase and inclusion of other countries in the MSCI EM Index,
India weight may decline leading to volatility in the markets
MSCI China „A‟ share
weight in the MSCI EM
Index expected to increase
Source: Morgan Stanley Research Report

Crude Prices
9
Crude oil prices have been on the rise since last few months and is expected to remain
volatile due to US sanctions on Iran (US announced an end to the waivers granted to few oil importing countries).
This might lead to inflation and may also impact trade & current account deficit
40
50
60
70
80
90
100
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
BrentCrude(InRs/Barrel)
Source: Bloomberg. Data as of April 30 2019
72.8

FPI Flows Trend – Month on Month
10
FPI flows could get volatile going ahead depending on stability of the new government, global growth
and Global Central Bank Policies
Source: NSDL; Data as of April 30, 2019. FPI – Foreign Portfolio Investors
-18,244
30,906
-4,262
17,220
33,981
21,193
-20,000
-10,000
0
10,000
20,000
30,000
40,000
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Oct-18
Apr-19
NetFPIFlows(InINRCrs.)

May seasonally tough for FPI flows
11
Source: NSDL; Data as of April 30, 2019
14,006
-5,768
2,543 7,711
-10,060
-30,000
-20,000
-10,000
0
10,000
20,000
30,000
40,000
May-14
May-15
May-16
May-17
May-18
FPI Net Equity Flows Trend (INR Crs)
In the past, May has
witnessed a seasonal
decline in FPI flows
followed by a pick up
in the following 2-3
months

Valuations –
Divergence between Growth and Value Stocks
12
Source: Morgan Stanley; Data as of March 31, 2019
33.1
22.7
10
15
20
25
30
35
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
P/E ratio of MSCI India growth and MSCI India value
indices, 2010-19 (%)
MSCI Growth Index MSCI Value Index
Value and special
situation themes
expected to play out
due to significant
disconnect between
price and value in
many „Growth‟ and
„Value‟ stocks

„Growth‟ stocks richly valued
13
Source: Kotak Securities. Data as of March 31, 2019. The sector(s)/stock(s) mentioned in this communication do not constitute recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
position in these sector(s)/stock(s)
Select growth stocks are
trading at rich valuations.
Value theme is expected to
do well.
Stock
12M Forward P/E multiple (x)
Mar-11 Mar-19
ABB 25 50
Asian Paints 26 49
Ultratech Cement 14 31
Page Industries 24 52
Hindustan Unilever 25 50
Dabur India 25 40
Colgate-Palmolive (India) 23 39
Marico 25 39
United Spirits 22 42
Jubilant Foodworks 37 45

Long Term Growth Story Remains Intact
14
Source: UBS. Data as of Oct 18
India ranks 77th in the Ease of Doing Business, improving significantly over last 5 years (142nd in 2014 and 100th in
2017 as per World Bank‟s Doing Business Report).
2 4 5 8 13 15
27 31 39 46 54
69 73 77
109
124
176
0
40
80
120
160
200
Singapore
Hongkong
SouthKorea
Unitedstates
Taiwan
Malaysia
Thailand
Russia
Japan
China
Mexico
Vietnam
Indonesia
India
Brazil
Philippines
Bangladesh
Ease of doing business ranking (%)

15
Source: UBS. Data as of CY 2017
There is a decline in China‟s share in global manufacture exports and an increase in India‟s share in the last two
years. This shift in export share from China to India is expected to benefit India in the long run.
19.7 18.5
18.4
0
5
10
15
20
1992
1997
2002
2007
2012
2017
China's share in global manufacture exports (%)
China's market shares Trend, prior to WTO accession
Trend, post WTO accession
1.6%
1.7%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
1980
1986
1992
1998
2004
2010
2016
India's manufactured exports share in global
manufactured exports (%)

16
Source: UBS.
India‟s working age as a % of China‟s working age is 88%. India has a demographic edge over other countries and
can reap the benefits of shift in the export share from China to India.
0% 1% 2% 2% 2% 4% 5% 7% 7% 8% 8% 10%
14% 18% 21%
88%
0%
20%
40%
60%
80%
100%
Singapore
HongKong
Taiwan
Malaysia
Canada
Korea
Thailand
Philippines
Vietnam
Japan
Mexico
Russia
Brazil
Indonesia
UnitedStates
India
India‟s working age as % of China's working age

17
Source: RBI; Data as of Quarter ends.
RBI Consumer Confidence Survey Results indicate that Consumer Confidence is on a rise
suggesting that India‟s consumption story is here to stay which augurs well for the economy.
95.1
96.9
94.8
96.7
104.6
88
90
92
94
96
98
100
102
104
106 Q4FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Consumer Confidence Index

Outlook – Asset Allocation, Value &
Special Situations Theme
18
Neutral stance on equities as valuations look
completely priced in.
Volatility may prevail due to global and domestic
factors
Recommend lump sum investment in Dynamic
Asset Allocation Schemes to benefit out of
volatility
Value and special situation themes expected to
play out during 2019
Equity accumulation, in mid/small/multicaps,
should be in a staggered manner via SIP/STP

Schemes to manage the bumpy ride:
Our Asset Allocation Bouquet
19
These schemes aim to benefit from volatility and manage equity exposure based on valuations
ICICI Prudential
Regular Savings Fund*
Conservative
Hybrid Fund
Equity
Savings
Fund
Dynamic Asset
Allocation or
Balanced
Advantage
Fund
Multi
Asset
Allocation
Aggressive
Hybrid
ICICI Prudential
Equity Savings Fund
ICICI Prudential Balanced
Advantage Fund
ICICI Prudential
Multi-Asset Fund
ICICI Prudential
Equity & Debt Fund
Net Equity–
10-25%
Net Equity–
15-50%
Net equity –
30-80%
Net Equity –
10-80%
Net Equity–
65-80%
The asset allocation and investment strategy will be as per the Scheme Information Document, *This scheme will attract debt taxation.
ICICI Prudential
Asset Allocator Fund
Net Equity Level*:
0-100%
Fund of
Funds

ICICI Prudential Balanced Advantage Fund*
20
Source: BSE India & MFIE, Data as of April 30, 2019. The in-house valuation model starts from March 2010onwards. ICICI Prudential BAF stands for ICICI Prudential Balanced Advantage Fund.
18,620
29,183
23,002
35,965
Net Equity
77.40
Net Equity
34.30
Net Equity
77.65
Net Equity
31.65
30
35
40
45
50
55
60
65
70
75
80
15,000
20,000
25,000
30,000
35,000
40,000
Apr'10
Jan'11
Oct'11
Jul'12
Apr'13
Jan'14
Oct'14
Jul'15
Apr'16
Jan'17
Oct'17
Jul'18
Apr'19
ICICIPrudentialBalancedAdvantage
FundNetEquityExposure(%)
SensexLevels
S&P BSE Sensex Levels vis-a-vis ICICI Prudential BAF* Net Equity Exposure (%)
Sensex Level Net Equity Exposure %
* An open ended dynamic asset allocation fund. The investment strategy will be as per Scheme Information Document

ICICI Prudential Asset Allocator Fund#
“Allocate between equity and debt at right time without tax impact*”
ICICI Prudential Asset Allocator Fund is an open ended Fund of Funds which has a flexibility to invest across equity
and debt schemes#
Investment Universe:
•Up to 100% in equity mutual fund schemes of ICICI Prudential Mutual Fund
•Up to 100% in debt mutual fund schemes of ICICI Prudential Mutual Fund
Allocation between asset classes
•The Scheme will be actively managed by experienced Fund Managers.
•The Scheme allocates predominantly between equity and debt mutual fund schemes based on in-house
valuation model.
*On change in allocation by the scheme. For more details on tax please consult with your tax advisor. The asset allocation and investment strategy will be as per Scheme Information Document. ) Investors may note that they will
be bearing the recurring expenses of this scheme in addition to the expenses of the underlying Schemes in which the scheme makes investment.
(# An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETFs/ schemes
To hedge against inflation or in adverse market situations, the Scheme may invest up to 50% in gold mutual fund schemes. Note: Subscriptions under the dividend plan of the scheme have been discontinued w.e.f. March 06, 2019
21

Schemes to benefit from Value & Special
Situations Theme
22
Fund of
Funds
*An open ended equity scheme following special situations theme. ^An open ended equity scheme following a value investment strategy. The investment strategy of the schemes will be as per the Scheme
Information Document
01
02
Value Fund with Equity Levels –
65 - 100%
ICICI Prudential Value Discovery Fund^
Special Situations Fund with Equity & Equity related
instruments of special situations theme of around
80 - 100%.
ICICI Prudential India Opportunities Fund*
These schemes aim to create wealth over long term by investing in opportunities at
reasonable valuations

ICICI Prudential Value Discovery Fund
23The investment strategy of the scheme will be as per the Scheme Information Document
95% of the time since June 29, 2007* ICICI Prudential Value Discovery Fund‟s five-year
daily rolling returns were more than 12%
ICICI Prudential Value Discovery Fund S&P BSE 500 TRI
Minimum Return 8.1% -1.4%
Maximum Return 34.5% 23.6%
Average Return 20.4% 12.0%
Standard Deviation 4.8% 5.2%
No. of days the fund provided:
< 8% return 0 402
8-12% return 77 316
12-15% return 172 395
15-18% return 297 95.4% 437 57.5%
18% return 1143 139
Total No. of Days: 1,689
Data Source: MFI; Data in % CAGR terms; The above analysis is done considering the investment period between June 29, 2007 and April 30, 2014. Returns are calculated for the period between June 29, 2012 to April 30, 2019.
Past performance may or may not sustain in the future. #The performance of the scheme is benchmarked to the Total Return variant of the index. *Values for S&P BSE 500 TRI are available from June 29, 2007.

ICICI Prudential India Opportunities Fund
24
The investment strategy will be as per Scheme Information Document
(1) Special Situation due to temporary Crisis in
a. Company b. Sectors c. Economy
(2) Government
Action/Regulatory Changes
(3) Global Events/Uncertainties
Situations that can be turned into opportunities

Schemes to benefit from growth story
25
Equity Levels –
65 - 100%
Equity Levels–
65 - 100%
Equity Levels–
65 - 100%Smallcap Fund
Midcap Fund
Multicap Fund
These schemes aim to benefit from the long term growth story
* An open ended equity scheme predominantly investing in small cap stocks. ^ An open ended equity scheme predominantly investing in mid cap stocks. # An open ended equity scheme investing across
large cap, mid cap, small cap stocks. The investment strategy of the schemes will be as per the Scheme Information Document
ICICI Prudential
Smallcap Fund*
ICICI Prudential
Midcap Fund^
ICICI Prudential
Multicap Fund#
GROWTH

ICICI Prudential Smallcap Fund
 Young and agile (AUM as on 30th
April 2019 is Rs. 255.48 Crs)
 Robust Investment Process
 Solid Research and Screening
Process
 Portfolio Construction and
Investment Strategy

ICICI Prudential Midcap Fund –
Investment Universe
Compounders with
Stable Growth
Long Term Wealth Creators
with Stable Growth
Consumption ideas, Brands
& High moat businesses
Structural
Growth
Long Term Wealth creators
Beneficiaries of Structural
changes in economy
Cyclical
Growth
Tactical Compounders
Beneficiary of Economic
Cycles

ICICI Prudential Multicap Fund
28
The investment strategy of the scheme will be as per the Scheme Information Document
Flexibility to invest across market capitalization
Well diversified across various sectors and stocks
Mix of Value and Growth Strategy
• Top down and bottom up approach
• Less sector skewness and Midcap/ Smallcap allocation would be based
directionally as per our In-House Market Cap Model

Our SIP Recommendations
29
ICICI Prudential
Value Discovery
Fund
(An open ended equity
scheme following a
value investment
strategy)
ICICI Prudential
Large & Midcap
Fund
scheme investing in both
largecap and midcap
stocks)
ICICI Prudential
Smallcap Fund
scheme predominantly
investing in smallcap
stocks)
ICICI
Prudential
Midcap Fund
scheme predominantly
investing in mid cap
stocks)
ICICI Prudential
US Bluechip Equity
Fund
scheme investing
predominantly in
securities of large cap
companies listed in
the United States of
America.)

Equity Valuation Index
30
Equity valuations show that
the market valuations are in
the zone where investors are
recommended to invest in
Dynamic Asset Allocation /
Balanced Advantage Funds &
Credit Risk/Medium Duration
Funds
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; Asset Allocation – Schemes that
invest both in equity and fixed income
123.38
50
70
90
110
130
150
170
Apr-06
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
Invest in Equities
Aggressively invest in Equities
Neutral
Incremental Money to Debt
Book Partial Profits

FIXED INCOME OUTLOOK:
POSITIVE ON SHORTER END OF YIELD CURVE
(1-3 YEARS)
31

FPI Comfort – Political Stability and US Fed Stance
Data as of April 30, 2019; Source: Edelweiss. FII – Foreign Institutional Investor / FPI – Foreign Portfolio Investor 32
Going forward, FPI
flows would depend on
stability of the newly
elected government
and US Federal
Reserve‟s evolving rate
stance
2,213
-846
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Oct-18
Apr-19
FII/FPI Debt Inflows (In USD Mn)

Fixed Income Market Remained Volatile in May
33
Reasons for
Volatility
MPC continuing
with neutral stance
On-going concerns
around NBFC
space
Govt. running high
cash balance with
RBI
MPC – Monetary Policy Committee; RBI – Reserve Bank of India

G-Sec Yield Curve Movement
34
Source: Crisil Research; Data as of April 30, 2019; G Sec – Government Securities
7.34
7.41
6.5
6.7
6.9
7.1
7.3
7.5
7.7
7.9
8.1
8.3
8.5
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
10-YrG-SecYields(%)
10 Yr G-Sec Yields (%)
Gsec - 5 Year Gsec-10 Year
Gsec yields went up as market was expecting a change in the stance of Monetary Policy Committee

Corporate Bond Yield Curve
35
Source Crisil Research, Data as of April 30, 2019
7.99
8.60
10.02
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
CorporateBondYields(%)
Corporate Bond Yields (%)
AAA- 3Year AA-3 Year A-3 Year
Corporate Bond space was also volatile due to the on-going NBFC concerns

Money Market Yield Curve
36
Source: CRISIL Research, Data as of April 30, 2019;
6%
7%
8%
9%
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
CD-1-Mnth CD-3-Mnth CD-6-Mnth CD-1-Yr
6%
7%
8%
9%
10%
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
CP-1-Mnth CP-3-Month CP-6-Month CP-1-Year
Money market yield have moved up due to Government maintaining high cash balance with RBI

5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
1 Year 3 Year 5 Year 10 Year
AAA AA Gsec Repo
37
Corporate Bond spread over Repo
“High Margin of Safety”
Source: CRISIL Research, Internal Research; Data as of April 30, 2019
S
P
R
E
A
D
In the current
scenario, corporate
bonds could provide
better risk-adjusted
returns over G-Sec,
as they provide better
cushion from any
unforeseen event

Liquidity Conditions
38
Source: Morgan Stanley Research; Data as of April 30, 2019
-60
-40
-20
0
20
40
60
80
100
Aug-12
Apr-13
Dec-13
Aug-14
Apr-15
Dec-15
Aug-16
Apr-17
Dec-17
Aug-18
Apr-19
Daily Interbank Liquidity(in US$, Bn)
Liquidity Conditions remained in the deficit mode

Government Cash Balance with RBI
39
Source: RBI, Morgan Stanley Research; Data as of April 30, 2019.
-100
200
500
800
1100
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Government of India Surplus Cash Surplus with RBI (INR Bn)
The primary reason behind tight liquidity conditions is the Government of India
maintaining high cash balance with the RBI

RBI using OMOs & FX SWAP to Manage Liquidity
40
100
200
500
250
-300
-200
-100
0
100
200
300
400
500
600
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
OMO Operations (In INR Bn)
Source: RBI, Morgan Stanley Research; Data as of April 30, 2019. OMO – Open Market Operations
RBI is implementing measures like OMOs & Foreign Exchange Swap to manage liquidity

Inflation starting to accelerate
41
• Since August 2018,
inflation in India has
been trending lower
than the Central
Bank‟s target of 4%
(+/-2%)
• This had prompted
RBI to cut rates twice
in 2019 (Feb & Apr
2019)
• There was a pick-up
in inflation in the last
two consecutive
months
Source: RBI, Data as of March 31, 2019
4.3
4.6
4.9 4.9
4.2
3.7 3.7
3.4
2.3
2.1 2.0
2.6
2.9
0
1
2
3
4
5
6
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
CPI Inflation (%)

Outlook – Short Duration Play
42
We continue to remain sanguine towards the short end
of the yield curve and on spread assets
We may tactically alter duration based on the spread
opportunity available in different market segment
We believe the next rate cut would be data-dependent
Accrual schemes have moved into „buy‟ territory with
attractive valuations, reduced flows, and negative
sentiments (NBFC liquidity crunch).
Risk-reward benefit has turned favourable; good time to
earn carry with high credit spreads available in the
corporate bond space
NBFC – Non-Banking Financial Companies

Debt Valuation Index
Debt Valuation Index considers WPI, CPI, Sensex YOY returns, Gold YOY returns and Real estate YOY returns over G-Sec yield, Current Account Balance and Crude Oil Movement for calculation. WPI – Wholesale Price Index;
CPI – Consumer Price Index. 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 before investing.
• We recommend investors
to invest in Low Duration
schemes or accrual
schemes such as ICICI
Prudential Credit Risk
Fund.
• For those investors who
aim to benefit from
volatility we recommend
investment in ICICI
Prudential All Seasons
Bond Fund.
43
Ultra Low Duration
Low Duration
High Duration
Aggressively in
High Duration
2.50
1
2
3
4
5
6
7
8
9
10
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Ultra Low Duration
Low Duration
Moderate Duration
High Duration
Aggressively in High Duration
2.82

Triggers to watch out for
44
Reversal in perishable food items
Fiscal Slippages
Escalating trade tensions between US and China

High Quality Portfolio
Data as of April 30, 2019; Past performance may or may not be sustained in future. *AAA, G-Sec and Cash
45
Scheme Name
Average
Maturity
Yield to Maturity
(YTM)
Modified
Duration
Exposure
to AAA*
securities
ICICI Prudential Money Market Fund 157.53 Days 7.57% 146.21 Days 100%
ICICI Prudential Savings Fund 361.28 Days 8.09% 274.17 Days 88.28%
ICICI Prudential Short Term Fund 2.57 Years 8.58% 1.90 Years 82.87%
ICICI Prudential Corporate Bond Fund 2.32 Years 8.28% 1.60 Years 100%
ICICI Prudential Banking & PSU Debt Fund 3.24 Years 8.45% 1.98 Years 79.65%

Accrual Schemes
46
Scheme Name Yield to Maturity Modified Duration
ICICI Prudential Credit Risk Fund 10.51% 1.42 Years
ICICI Prudential Medium Term Bond Fund 9.95% 2.05 Years
ICICI Prudential Floating Interest Fund 9.02% 189.36 Days
These schemes aim to provide better risk-adjusted returns based on our investment process
Data as of April 30, 2019; Past performance may or may not be sustained in future

Strong case for investment in Credit Risk Funds
47
Valuations are attractive
Industry Flows are slowing
down
Sentiments are Negative

Invest when Valuations are Attractive
48
YTM of ICICI Prudential Credit Risk Fund – 10.51%
(Takes exposure into AAA, AA and A instruments)
YTM of ICICI Prudential Medium Term Bond Fund – 9.95%
(Takes exposure predominantly in AAA & AA instruments)
YTM of ICICI Prudential Ultra Short Term Fund – 8.84%
(Takes exposure into Short duration instruments)
Source: Data as of April 30, 2019; YTM – Yield To Maturity

Invest when Flows are Muted
49
Source: MFIE. The funds considered are only Credit Risk Funds as per SEBI classification. Data as of March 31, 2019
90,924
81,181
76,000
78,000
80,000
82,000
84,000
86,000
88,000
90,000
92,000
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Credit Risk Funds Category AUM (In Crs) - Industry Level

Accrual Based Schemes Investment Process
Well Researched Credit Universe
• Based on various filters, qualitative and quantitative research
Broadened Exposure
• Mitigating concentration risk by diversification
Strict Internal Limits at Issuer Level and rating level
Managing Duration Risk
• Clearly defined modified duration range
These schemes have an
independent credit evaluation,
approval, and monitoring
process which does not solely
rely on the Fund Manager’s
judgment to invest in a paper.
These schemes focus on direct
origination* which helps in
alpha generation and
monitoring.
The asset allocation and investment strategy will be as per Scheme Information Document. *Direct origination means no involvement of intermediaries.
50

Mitigating Risk – ICICI Prudential Credit Risk Fund
51
20% in AAA & equivalent rated
debt instruments, TREPS &
Net Current Assets
The portfolio is well
diversified and invests
across various credit ratings
Conservative approach towards
duration– current modified
duration – 1.42 yrs
87* different securities with
average exposure of around
1.09% to each individual issuer
Liquidity
Management
Concentration
Management
Credit
Management
Duration
Management
Data as of April 30, 2019. 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 asset allocation and investment strategy will be as per Scheme Information Document. TREPS – Tri Party Repos; *Includes CPs and CDs.

ICICI Prudential Credit Risk Fund
The scheme portfolio is well-diversified across a large number of securities which reduces
risk pertaining to high exposure in a single security.
10.51% Yield to Maturity
No. of securities in the scheme portfolio
Aims to invest in well researched
corporate bonds
Aims to generate alpha from any potential
credit upgrades
Average exposure to a single security in
the portfolio
Highest exposure to single security in the
portfolio
Exposure (as % of NAV) to the top 10 holdings
in the portfolio
87
1.09%
5.27%
33.05%
Data as of April 30, 2019; The asset allocation and investment strategy will be as per the Scheme Information Document. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document;
NAV – Net Asset Value
Aims to maintain stable accrual income with
Hold-to-Maturity approach
52

Fixed Income Recommendations
53
ICICI Prudential Floating Interest Fund
Cash Management Solution
(which benefits from better risk adjusted returns)
ICICI Prudential Ultra Short Term Fund
ICICI Prudential Medium Term Bond Fund
Accrual Schemes
(which benefits from capturing yields at elevated levels)
ICICI Prudential Credit Risk Fund
ICICI Prudential All Seasons Bond Fund
Dynamic Duration Schemes
( which benefits from volatility by actively managing
duration)
ICICI Prudential Short Term Fund
Low/Short Duration Schemes
(which benefits from mitigating interest rate volatility)

Our Equity Schemes
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 Situation theme
ICICI Prudential US Bluechip Equity Fund
An open ended equity scheme investing predominantly in securities of large
cap companies listed in the United States of America.
54

Our Hybrid Schemes / Fund of Funds 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, Gold/Gold ETF/units of
REITs & InvITs and other asset classes as may be permitted from time to
time.
55
ICICI Prudential Asset Allocator Fund
An open ended fund of funds scheme investing in equity oriented
schemes, debt oriented schemes and gold ETFs/schemes.

Our Debt Schemes
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 debt scheme with Macaulay Duration between 6 - 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
ICICI Prudential Corporate Bond Fund An open ended debt scheme predominantly investing in AA+ or above rated securities.
ICICI Prudential Money Market Fund An open ended debt scheme investing in money market instruments
56

Riskometers
ICICI Prudential Multi-Asset Fund is suitable for investors who are 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.
ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*:
 Long term wealth creation solution
 An equity fund that aims for growth by investing in equity and derivatives.
57

Riskometers
ICICI Prudential Bluechip Fund is suitable for investors who are seeking*:
 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
ICICI Prudential Value Discovery Fund is suitable for investors who are seeking*:
 An open ended equity scheme following a value investment strategy
them
ICICI Prudential Large & Mid Cap Fund is suitable for investors who are seeking*:
 An open ended equity scheme investing in both largecap and mid cap stocks
them
58

Riskometers
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
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
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.
59

Riskometers
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.
ICICI Prudential All Seasons Bond Fund is suitable for investors who are seeking*:
 All duration 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
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.
60

Riskometers
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
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
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.
61

Riskometers
ICICI Prudential Infrastructure Fund is suitable for investors who are seeking:*
An open-ended equity Scheme that aims for growth by primarily investing in companies belonging to
infrastructure and allied sectors
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ICICI Prudential India Opportunities Fund (The scheme is suitable for investors who are seeking*)
 An equity scheme that invests in stocks based on special situations theme.
ICICI Prudential Banking & Financial Services Fund is suitable for investors who are seeking:*
An open-ended equity Scheme that that predominantly invests in equity and equity related securities of
companies engaged in banking and financial services
62

Riskometers
ICICI Prudential Equity Savings Fund is suitable for investors who are seeking*:
 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.
ICICI Prudential Multicap Fund is suitable for investors who are seeking*:
 An open ended equity scheme investing across largecap, mid cap and small cap stocks.
ICICI Prudential US Bluechip Equity Fund is suitable for investors who are seeking*:
 An open ended equity scheme primarily investing in equity and equity related securities of companies listed on recognized stock
exchanges in the United States of America
63

Riskometers
64
ICICI Prudential Savings Fund is suitable for investors who are seeking*:
 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*:
 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 is suitable for investors who are seeking*:
 An open ended debt scheme predominantly investing in highest rated corporate bonds

Riskometers
65
ICICI Prudential Money Market Fund is suitable for investors who are seeking*:
 A money market scheme that seeks to provide reasonable returns, commensurate with low risk while providing
a high level of liquidity
•Long Term wealth creation
•An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes
and gold ETF/schemes.
ICICI Prudential Asset Allocator Fund (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*:
Moderate
LOW
Investors
understand that
their principal will
be at Moderately
high risk
HIGH

Disclaimer For Mutual Funds
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 publicly 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 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. ICICI Prudential Asset Management Company Limited (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.
66

Monthly market outlook for may 2019

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