The document advocates for investing in equities due to attractive valuations, as indicated by the equity valuation index, amidst a low-to-mid business cycle phase and negative sentiment in the market. It recommends adding equities to investment portfolios through specific schemes, especially following the recent market correction due to COVID-19, which has created a favorable buying opportunity. The document emphasizes careful valuation analysis and investing in quality stocks and small-cap funds while advising that investment decisions should be made after consulting financial advisors.

1. Time to Invest in Equities – Valuations Attractive
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 Mar 13, 2020
 Our Equity Valuation Index highlights that Equities are available at attractive valuations
 Our VCTS (Valuation, Cycle, Trigger and Sentiments) framework indicates that the Valuations are
attractive, we are in the low to mid phase of business cycle and sentiments around the asset class
is negative
 Hence, we recommend adding equities to the investment portfolio at this juncture
 Global crisis usually provided a good opportunity to invest in equities. We believe with recent
market correction due to concerns around COVID-19 spread, market has stepped into an oversold
zone. This provides a good margin of safety for equity investments
COVID-19 is Coronavirus disease 2019
 We recommend adding equities through Asset allocation schemes and Fund of fund schemes like
ICICI Prudential Balanced Advantage Fund and ICICI Prudential Asset Allocator Fund (FOF)
 We believe quality stocks are still expensive and the rest of the market is attractively priced.
Hence, we recommend investing in Value and Special Situations theme through schemes like ICICI
Prudential Value Discovery Fund and ICICI Prudential India Opportunities Fund
 We remain positive on the Smallcap space as valuations are reasonable and recommend investing
in ICICI Prudential Smallcap Fund
50
70
90
110
130
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170
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
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Mar-20
Invest in Equities
Aggressively invest in Equities
Neutral
Incremental Money to Debt
Book Partial Profits
90.5
Equity Valuation Index
Highlights
Our Recommendations

2. Time to Invest in Equities – Valuations Attractive
Scheme Name Type of Scheme
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 India Opportunities Fund
An Open Ended Equity Scheme following Special Situations
theme
ICICI Prudential Balanced Advantage Fund An open ended dynamic asset allocation fund
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.
*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.
Type of Scheme
Riskometers

3. Time to Invest in Equities – Valuations Attractive
*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")
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