The document provides an overview of the performance of global and Indian markets and economic indicators in October 2021. Key points include:
1) Indian markets continued their upward momentum in October driven by India's insulation from slowdowns, stable COVID trends, government reforms and low interest rates.
2) Within India, the real estate sector performed strongly while metals lagged.
3) COVID cases and positivity rates remained under control in India, though upcoming festivals will need close monitoring. Vaccination rates picked up in September.
4) Various economic indicators like e-way bills, vehicle registrations, mobility and power consumption show an improvement in economic activity as COVID cases decline and vaccination increases.
2. Global Indices Performance
2
Indian markets Continued its
forward march, which can be
attributed to the India’s insulation
from a potential slowdown, steady
trends on pandemic front, govt.
reforms/relief measures and
record low interest rates
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. GDP – Gross Domestic Product. Data Source: MFI & ACEMF, Returns are absolute returns for the index calculated between Sep 1, 2021 – Sep 30, 2021. Past performance may or may not sustain in
future. COVID – Coronavirus Disease. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html
4 4 3 3
0
0
-1
-3 -4 -4 -4
-4 -4
-6
-6
-7
-8
-6
-4
-2
0
2
4
6
Russia
Japan
Indonesia
India
China
Singapore
UK
Taiwan
Europe
France
Germany
US
South
Korea
Hong
Kong
Switzerland
Brazil
Absolute
Returns
(%)
Returns Performance - Sep 2021
3. India – Sectoral Indices Performance
3
Real Estate was the
standout performer
driven by a seemingly
sharp uptick in property
sales while Metals
(China property market
concerns) remained
major laggard
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, ACEMF ; Returns are absolute returns for the TRI variant of the index (except Infrastructure Index) calculated between Sep
01, 2021 – Sep 30, 2021; Past performance may or may not sustain in future. The sector(s)/stock(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 sector(s)/stock(s). MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.
26
11 10 9 8 7 7 6
3 3 2 2 2
0 0
-2
-4
0
4
8
12
16
20
24
28
Realty
Telecom
Energy
CD
Power
Infra
Oil
&
Gas
Auto
CG
Bankex
IT
FMCG
Finance
Basic
Mat.
Metal
HC
Absolute
Returns
(%)
Returns Performance - Sep 2021
11. Equity markets pacing ahead
11
India continue to demand premium over other Asian countries and remains at a high valuation
MSCI India P/E valuation vs global MSCI peers
Sources: INCRED research; Data as on Oct 04, 2021
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Oct-18
Apr-19
Oct-19
Apr-20
Oct-20
Apr-21
Oct-21
MSCI India forward P/E premium to Asia
MSCI India / Asia Pacific Ex-Japan 12M Forward P/E
Mean
+1 sd
+2 sd
+3 sd
38%
26%
51%
63%
22.1
14.814.4
18.0
26.2
13.6
14.8
13.413.8
16.9
11.8
15.4
13.1
10.3
7.4
12.2
20.2
10.1
13.813.6
15.0
7.2
17.5
14.014.1
15.2
11.1
0
5
10
15
20
25
30
INDIA
INDONESIA
MALAYSIA
WORLD
WORLD
GROWTH
WORLD
VALUE
EUROPE
ASIA
EX
JAPAN
ASIA
PACIFIC
AUSTRALIA
UK
FRANCE
GERMANY
EMERGING
MARKETS
BRAZIL
CHINA
US
KOREA
JAPAN
MEXICO
CANADA
RUSSIA
SWITZERLAND
NORWAY
VIETNAM
HONG
KONG
ITALY
12. Equity markets pacing ahead
12
Gap between Earnings Yield and Bond Yield continue to expand, however the bond yield remains lower
compared to the long term average
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
Sep-06
Mar-07
Sep-07
Mar-08
Sep-08
Mar-09
Sep-09
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
Earnings Yield and Bond Yield
Earnings Yield 10 yr Gov Bond Yield
Sources: INCRED research; Data as on Sep 30, 2021
13. Economy prepares to catch-up
How are the components of economic growth shaping up?
GDP
=
C+I+G+
(X-M)
Consumption
(C)
Private
Investment
(I)
Government
Spending
(G)
Net Exports
(X-M)
14. Economy prepares to catch-up
14
Historical Trend : Components of economic growth
Growth drivers (2002-10) Growth drivers (2011-19)
Source: MOSPI, J.P. Morgan
6.8 6.3
10.3
15.1
0
2
4
6
8
10
12
14
16
Private Cons. Govt. Cons. Investment Exports
(%)
7.0 6.8
5.7
3.2
0
1
2
3
4
5
6
7
8
Private Cons. Govt. Cons. Investment Exports
(%)
Exports average 15% during the period – India companies
plugged into global markets
Baton moved to consumption, with retail credit boom
tapping into underpenetrated households
15. Economy prepares to catch-up
15
Current Scenario : How are the components of economic growth shaping up?
Growth rates in 1Q21 GDP
Source: MOSPI, J.P. Morgan
A public investment push appears
central to the government’s strategy.
1. It will support near term demand and its large
multiplier effect on activity should eventually
catalyze private investment.
2. Infrastructure spending will create jobs for the
bottom of the economic pyramid
3. Boosts the economy’s internal and external
competitiveness and thereby helps trend growth.
Exports and government capex will need to combine to create a growth bridge till private investment and
consumption recovers
16. Economy prepares to catch-up: Consumption
16
Demand scenario appears to be mixed with patchy monsoons and significant hit on the employment at
lower levels in urban India. However, improved mobility indicators maybe a precursor for improvement
in consumption
Airline Traffic – Picking-up
Toll Collection data showing uptick in vehicle movement
Sources: JMFL research; Data as on Sep 30, 2021 for Airline traffic and Oct 04, 2021 for Toll collection
200
700
1,200
1,700
2,200
2,700
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21 20,000
70,000
1,20,000
1,70,000
2,20,000
2,70,000
3,20,000
No. of Passengers - RHS (7 Day MA)
No. of departures (7 Day MA)
-0.5
0
0.5
1
1.5
2
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
National Electronics Toll Collections - Volume (2 year CAGR)
17. Economy prepares to catch-up: Government Expenditure
17
Budget provided growth push
GOI plans to spend
1400bn USD on
infrastructure till 2025
will generate enough
demand for labor and
industrial goods which
will boost incomes and
demand over coming few
years.
Central govt. capex as % of GDP
Source: Budget documents, MoSPI, Jefferies
18. Economy prepares to catch-up: Government Expenditure
18
Government spending remained robust and focused toward the segments which have higher impact
on the economy. Also, buoyant tax collection should bode well for the Govt. to accelerate spending.
GOI plans to spend
1400bn USD on
infrastructure till 2025
will generate enough
demand for labor and
industrial goods which
will boost incomes and
demand over coming few
years.
919 913
1,096
1,322 1,362 1,344
1,719
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Apr -
Aug'15
Apr -
Aug'16
Apr -
Aug'17
Apr -
Aug'18
Apr -
Aug'19
Apr -
Aug'20
Apr -
Aug'21
Capex (Rs. bn)
22.4 22.2 22.6
32.8
20.5
51.2
-
20.0
40.0
60.0
Direct tax - Personal income tax - Corporate tax
FY22BE 5MFY22
Direct Tax Growth (%) – Apr 21 over Apr 19
11.4 21.4
-7.2
-28.6
22.3
27.0 22.9
80.5
-81.3
11.4
-90.0
-40.0
10.0
60.0
Indirect tax - Custom
duties
-Excise duties -Service tax -GST
FY22BE 5MFY22
Indirect Tax Growth (%) – Apr 21 over Apr 19
Sources: Spark research; Data as on Aug 31, 2021
19. Economy prepares to catch-up: Government Expenditure
19
882
1,624
1,795
1,673
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY22 FY23 FY24 FY25
GoI monetization pipeline year-wise (Rs bn)
1,602
1,525
452
398
245
225
351
289
287
208
150
128
115 Roads
Railways
Power Transmission
Power Generation
Natural Gas Pipelines
Product pipeline/others
Telecom
Warehousing
Mining
Aviation
Urban Real Estate
Ports
Stadiums
Sector-wise monetization pipeline for FY22-25 (Rs bn)
Sources: NITI AAYOG;GOI-Government of India, . 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). Since COVID-19 is an on-going pandemic, further change in sectoral leadership can be expected
National Monetisation Program to unlock funds for future Infrastructure creation
20. Economy prepares to catch-up: Government Expenditure
20
Asset Monetisation under NMP to kick start a Capex Cycle
Monetize existing
monetizable assets
Proceeds from existing
monetizable assets
New infrastructure
creation
Recycle the
future assets
Existing
asset base
Enhanced capex spending and
building world class infrastructure
Multiplier effect on growth and
employment
Revival of credit flow
Asset Monetization creates a virtuous cycle
NMP – National Monetization Policy
21. Economy prepares to catch-up: Private Investment
21
The ripple effects from government incentives and spending to kick start private capex
Indian corporates are well placed to undertake capex
Source: Source: CMIE, IIFL Research. Note: Sample of selected 269 companies, which had consistent
data FY10 onwards. Data as on March 31, 2021
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Gross Debt to EBITDA (x) – BSE 500 Companies
6
8
10
12
14
16
18
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
Aggregate Aggregate Ex-Financials
(%)
Return on Equity – BSE 500 companies
Source: Source: CMIE, IIFL Research. Data as on March 31, 2021
Improving Profitability Corporate Deleveraging
22. Economy prepares to catch-up: Private Investment
22
The ripple effects from government incentives and spending to kick start private capex
Union Budget 2021-2022 clearly indicated Govt.’s intent to bolster growth with a projected increase in
capital expenditure & spending which may lead to increase in demand
Source: IIFL Research, Data as on March 31, 2021
Healthy bank balance sheets of financial institutions to aid credit growth going forward
5
10
15
20
FY16 FY17 FY18 FY19 FY20 FY21
Private Banks PSU Banks NBFCs
Tier 1 Capital Ratio (%)
Increasing Tier 1
Capital Ratio shows
improving health of
financial institutions
23. Economy prepares to catch-up: Exports
23
Exports to provide a silver lining and aid the Government in doing the heavy lifting
to push India’s growth
PLI SCHEME
GOI announced a Rs2 tn outlay for 12
key sectors under the Production-
Linked Incentive (PLI) scheme.
Global Economies have expanded their
balance sheets manifold in the last decade
thereby increasing liquidity.
GLOBAL FISCAL STIMULUS CHINA +1 STRATEGY
Crack down on Chinese technology
companies, Fresh wave of Covid in china
and disruption of global supply chains is
reinforcing the China+1 strategy.
This shall generate Rs30-35 tn of additional
production value over the next 5-7 years
This is likely to boost exports, promote
investment and create employment
This is positive for Emerging Markets
Source : Kotak Research
24. 24
Global Economies have expanded their balance sheets manifold in the last decade
thereby increasing liquidity. This is positive for Emerging Markets
Source: Edelweiss Research, Morgan Stanley Research. Money Supply Data as on June 30, 2021 and Balance Sheet data as on Aug 31, 2021 : Fed – US Federal Reserve, ECB – European Central Bank, BOJ – Bank Of Japan
4
6
8
10
12
14
16
Jun/10
Apr/12
Feb/14
Dec/15
Oct/17
Aug/19
Jun/21
Global broad money supply growth
(YoY%)
Economy prepares to catch-up: Exports
0
50
100
150
200
250
300
Aug-99
Aug-00
Aug-01
Aug-02
Aug-03
Aug-04
Aug-05
Aug-06
Aug-07
Aug-08
Aug-09
Aug-10
Aug-11
Aug-12
Aug-13
Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Aug-19
Aug-20
Aug-21
Central
Bank
Balance
Sheet
as
a
%
of
GDP
Central Bank Balance Sheet as a % of GDP
Fed ECB BOJ
25. Summary : Equity Market and Economy
25
Equity market valuations are not cheap
The four legs of economic growth i.e. private consumption, government consumption, private investment
and net exports are preparing to catch up, each at a different pace.
Exports and government consumption will need to lead the pack and combine to create a growth bridge
till private investment and consumption recover from the impact of Covid-19.
The economy is on the verge of capex recovery led by government policy and expenditure push which
shall give impetus to private capex and consumption demand by creating employment.
We expect business cycle to pick-up
Neither aggressive nor negative on equities : Middle-of-the-road approach
Prefer equity schemes with Flexibility and Dynamic Asset allocation schemes
Important trigger – How US Fed changes it’s stance, Inflation trajectory and US 10-Year Govt. Bond Yield
27. Emerging Market Value Vs. Growth
27
MSCI EM Value has
begun outperforming
Growth in the last few
months
Source: Morgan Stanley. Time Period considered – Sep 01, 2020 to Sep 30, 2021. Past performance may or may not sustain in future. EM – Emerging Markets. Index Values have been re-based to 100
120.2
104.6
90
100
110
120
130
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
MSCI EM Value Vs. MSCI EM Growth Index
MSCI EM Value MSCI EM Growth
28. Value Investing
Value Vs. Dollar movement
28
• Historically, MSCI EM Value
Index has performed when
US Dollar depreciates
• As can be seen, MSCI EM
Value Index has begun
performing
• Going forward, we expect
the Dollar to depreciate
further and Value to continue
performing
Source: Morgan Stanley. Data as of Sep 30, 2021. Past performance may or may not sustain in future. EM - Emerging Markets
95
100
105
80
90
100
110
120
130
140
US
Dollar
Index
MSCI
EM
Value
Index
MSCI EM Value US Dollar Index (RHS)
29. 2018 -2020 – Handful of Stocks Driving India’s Markets
29
Total Universe considered is 1686 listed stocks. Stocks are arranged in descending order as per Marketcap. Marketcap change is considered for period between 28-Feb-18 and 30-Sep-20. Source: Capitaline. Past performance
may or may not sustain in future
4%
-2%
2% 1%
-24%
-57%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
Top
10
Top
11-20
Top
21-50
Top
51-100
101-250
251-500
>=501
Marketcap Change (Since Feb'18 till Sep'20)
30. 30
Total Universe considered is 1657 listed stocks. Stocks are arranged in descending order as per Marketcap. Marketcap change is considered for period between 01-0ct-20 and 31-Aug-21. Source: Edelweiss Research. Past
performance may or may not sustain in future
Post 2018 market fall, market
rally was concentrated and led
by Growth stocks. However,
post Oct-2020, we have seen a
more broad based rally and
going forward we expect this
rally to continue as the
economy further opens up
Oct-2020 onwards – Broad-based rally
38%
69%
54%
60%
74% 72%
99%
0%
20%
40%
60%
80%
100%
120% Top
10
11-20
21-50
51-100
101-250
251-500
>500
Market cap Change (Oct‘20 till Aug’21)
32. Our Equity Outlook
32
• Long-term view on equity remains positive, however the medium-term view has turned
cautious due to valuations moving higher.
• Broad market valuations are not cheap.
• There are few pockets across sectors which are still reasonably valued.
• We remain positive on sectors/themes like Oil & Gas, Construction, Banks, Auto, Pharma and
PSU companies, where the valuation, earnings or dividend yield remains attractive.
• In terms of trigger, we would continue to monitor US 10 Year treasury yield and US Fed
roadmap for withdrawal of stimulus.
• Sentiments remains high and in certain areas appears to be euphoric.
The sector(s)/stock(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 sector(s)/stock(s).
33. Investment Themes: ABCD
ICICI Prudential Asset Allocation Strategies –
ICICI Prudential Asset Allocator Fund (FOF)
ICICI Prudential Multi-Asset Fund
ICICI Prudential Balanced Advantage Fund –
Dynamically manages equity & debt allocation basis
Market Valuations
ICICI Prudential Business Cycle Fund – Invest in
scheme which is nimble enough to move across
sectors/marketcap as Business Cycles change
33
A
B D
C
The asset allocation and investment strategy will be as per Scheme Information Document.
Strategies which are available at a Discount to the
broader markets – ICICI Prudential Focused Equity Fund,
ICICI Prudential Value Discovery Fund, ICICI Prudential
India Opportunities Fund, ICICI Prudential Dividend Yield
Equity Fund, ICICI Prudential Infrastructure Fund
34. Our Top SIP Recommendations
SIP
ICICI Prudential
Asset Allocator
Fund (FOF)
ICICI Prudential
Balanced
Advantage Fund
ICICI Prudential
Business Cycle Fund
34
SIP – Systematic Investment Plan. The asset allocation and investment strategy will be as per Scheme Information Document.
ICICI Prudential
Multi-Asset Fund
35. Our Long term SIP Recommendations with Freedom SIP
35
SIP
ICICI Prudential
Value Discovery
Fund
ICICI Prudential
Smallcap Fund
ICICI Prudential
Midcap Fund
ICICI Prudential
Focused Equity Fund
SIP – Systematic Investment Plan, SWP – Systematic Withdrawal Plan. ICICI Prudential Freedom SIP is an optional feature that allows initial investments through SIP, switch to another scheme after a pre- defined tenure and
SWP post that. ^The SWP will be processed either till Dec2099 or till units are available in target scheme, whichever is earlier. Please read the terms and conditions in the application form before investing .For source and
target scheme names, refer the Application Form of ICICI Prudential Freedom SIP. ICICI Prudential Mutual Fund reserves the right to make changes in the source and target schemes. Investor may please note that ICICI
Prudential Freedom SIP is different from ICICI Prudential Freedom SWP.The asset allocation and investment strategy will be as per Scheme Information Document. *For more information visit www.icicipruamc.com
ICICI Prudential Freedom SIP* is a combination of Smart Features, to help investors achieve their Financial Goals. Freedom SIP allows investors
to switch the SIP investments to a target scheme, post completion of the SIP tenure & monthly SWP will continue from the target scheme
36. Our Equity Valuation Index
Our Equity Valuation Index
highlights that valuations
are not cheap and
recommends equity
investing only with a long
term perspective coupled
with ‘Dynamic Asset
Allocation Scheme’ that
aims to manage equity
exposure basis market
valuations
36
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 Sep 30, 2021
50
70
90
110
130
150
170
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
Sep-15
Sep-16
Sep-17
Sep-18
Sep-19
Sep-20
Sep-21
Aggressively Invest in Equities
Neutral
Incremental Money to Debt
Book Partial Profits
136.1
Invest in Equities
37. Value Investing through
ICICI Prudential Value Discovery Fund
37
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
PORTFOLIO POSITIONING
38. ICICI Prudential Business Cycle Fund –
Navigating Business Cycles with Nimbleness
38
With macro environment expected to be highly dynamic, there arises a need for scheme that is
nimble enough to participate across different Business Cycles at any given point in time
Output
Capacity
Growth
Trend
Growth
Recession
Slump
Recovery
Time
The asset allocation and investment strategy will be as per Scheme Information Document. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme.
39. History suggests –
Sectoral Leadership has changed with every Crisis
39
2000 (Dot Com Bubble) 2008 (Lehman Crisis) Now (COVID-19 Pandemic)
Sector Weightage
CONSUMER GOODS 27.5%
OIL & GAS 24.2%
IT 12.2%
FINANCIAL SERVICES 10.1%
PHARMA 7.2%
Sector Weightage
OIL & GAS 19.3%
TELECOM 9.7%
FINANCIAL SERVICES 8.9%
POWER 5.5%
CONSTRUCTION 3.6%
Sector Weightage
FINANCIAL SERVICES 37.2%
IT 17.4%
OIL & GAS 12.3%
CONSUMER GOODS 11.1%
AUTOMOBILE 4.7%
Nifty 50 Index Constituents – The Great Churn
Aim to invest in potential future leaders
Data as of Sep 30, 2021. Source: NSE. 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). Since
COVID-19 is an on-going pandemic, further change in sectoral leadership can be expected
40. ICICI Prudential Focused Equity Fund –
Focused on future potential leaders
40
Portfolio Data is as of Sep 30, 2021. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
Macro Vs. Micro
The portfolio currently focuses on micro theme by investing in companies which
have strong fundamentals and better earnings
Overall Macro Recovery
The scheme has exposure towards sectors which may benefit from overall
macro recovery like pick up in Credit Growth and Capex cycle, Real Estate, etc.
Disruption and Dislocation
The scheme has good exposure to companies which may benefit from
temporary disruption due to COVID-19 impact or which can tide over the
dislocation of supply chain
Large Financial Companies
The portfolio also has good exposure towards large financial companies which
may benefit from economic recovery cycle (better credit growth + lower credit
cost) and from consolidation in PSU space
41. 41
ICICI Prudential Asset Allocator Fund (FOF) aims to allocate across Equity, Debt & Gold
basis relative valuations
Asset Allocation Strategy:
An array of opportunities across asset classes
Source: MFI. Net Equity levels are as on month ends,. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. Data as on
Sep 30, 2021. The asset allocation and investment strategy of the Scheme will be as per Scheme Information Document. Past performance may or may not sustain in future. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit
http://www.icraonline.com/legal/standard-disclaimer.html. 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.
83%
34%
29,468
59126
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
30%
40%
50%
60%
70%
80%
90%
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
S&P
BSE
Sensex
Levels
ICICI
Prudential
Asset
Allocator
Fund
(FOF)
Net
Equity
Levels
S&P BSE Sensex Levels Vs ICICI Prudential Asset Allocator Fund (FOF) net equity exposure (%)
Net Equity Level S&P BSE Sensex
42. 42
ICICI Prudential Balanced Advantage Fund aims to allocate between Equity & Debt basis market valuations
Source: BSE India & MFI, Data as of Sep 30, 2021. The in-house valuation model starts from March 2010 onwards. The asset allocation and investment strategy will be as per Scheme Information Document. MFI Explorer is a tool
provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html Scheme benchmark is Crisil Hybrid 50+50 – Moderate Index
29468
59126
74
34
30
40
50
60
70
80
28000
32000
36000
40000
44000
48000
52000
56000
60000
Dec/19
Jan/20
Feb/20
Mar/20
Apr/20
May/20
Jun/20
Jul/20
Aug/20
Sep/20
Oct/20
Nov/20
Dec/20
Jan/21
Feb/21
Mar/21
Apr/21
May/21
Jun/21
Jul/21
Aug/21
Sep/21
ICICI
Prudential
Balanced
Advantage
Fund
Net
Equity
Fund
Levels
(%)
S&P
BSE
Sensex
S&P BSE Sensex Levels (Index) Vs. ICICI Prudential Balanced Advantage Fund (Scheme) Net Equity
Levels
S&P BSE Sensex Net Equity Exposure %
Dynamic Asset Allocation Approach-
Better equipped to handle turning points
43. 43
Multi-Asset Allocation Strategy –
An array of opportunities across asset classes
Data as of Sep 30, 2021, Equity portion is excluding the derivative exposure and including preference shares. The portfolio has exposure of 7.54% to Gold ETCDs (Exchange Traded Commodity Derivatives)
74%
3%
2%
20% Equity
Gold (excluding 7.54% in Gold ETCD)
Units of Real Estate Investment Trusts (REITs)
& Infrastructure Investment Trusts (InvITs)
Debt Holdings & Net Current Assets
44. Why ICICI Prudential Multi-Asset Fund Now?
44
* Consult your tax advisor for more details. REITs – Real Estate Investment Trusts; InvITs – Infrastructure Investment Trusts. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document
of the Scheme. The asset allocation and investment strategy will be as per the Scheme Information Document
• Valuations – Equity Valuations are not cheap. Also, the way forward will depend on various macro factors
like inflation, interest rates, economic activity pick-up, timely vaccine roll-out, Global Central Banks fiscal
and monetary stance etc.
• Interest Rates – The interest rates are lower, hence debt as an asset class is expected to deliver average
returns
• Macro Uncertainty – In such a scenario of rising uncertainty with regards to various macro factors and low
interest rate environment, allocating funds in various asset classes is recommended
• The strategy of ICICI Prudential Multi-Asset Fund is to invest in various asset classes with an aim to provide:
Capital appreciation by investing in equities,
Stability and Accrual returns by investing in debt,
Hedge against inflation by investing in gold
Yield enhancement by investing in REITs & InVITs and by writing covered call option.
• The scheme maintains its equity taxation* even after taking exposure to various asset classes
45. About ICICI Prudential Flexicap Fund
45
Staggered Manner of deployment in Equity based on
various internal asset allocation & valuation models
Adequate capping on stock concentration
Middle of the diversified space (moderate) as the
market-cap allocation would be managed
dynamically
Marketcap Allocation
Deployment Approach
Stock Diversification
Risk Reward
Based on the in-house Marketcap model
Please note, The In-house market cap model factors are not exhaustive, the scheme may or may not use the above factors. In order to manage the scheme and to ensure that the Scheme attains its investment objective, the AMC has developed an in-house
model to invest across market caps in a structured manner. The asset allocation and investment strategy will be as per Scheme Information Document. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information
document of the Scheme. The above example/analogy is for illustration purpose only.
47. The short-end of the yield curve moved higher due to RBI’s intent to manage short-term liquidity more actively
Yield Curve Movement
47
Data as on Oct 04, 2021, CRISIL Research, MPC – Monetary Policy Committee
3
4
5
6
7
1M 3M 6M 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs
Yield Curve – Gsec (%)
03-Aug-21 04-Oct-21
3
4
5
6
7
8
1M 3M 6M 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs
Yield Curve – Corporate Bond (%)
03-Aug-21 04-Oct-21
48. GDP & Credit Growth
48
Source: GDP - MOSPI. Data as of June 30, 2021. Credit Growth – RBI. Data as of August 31, 2021
Higher Fiscal support with credit pick-up may result in stronger recovery. This may come with a risk of
elevated inflation and likely result in interest rate volatility
5.4 4.6 3.3 3.0
-24.4
-7.4
0.5 1.6
20.1
-25
-20
-15
-10
-5
0
5
10
15
20
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
India GDP Data (%)
7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Credit Growth (YOY)
49. Inflation : Commodity & Food Prices
49
Source: Morgan Stanley. Data as of Sep 30, 2021 for CRB Index and Aug 31, 2021 for FAO Index, CRB – Commodity Research Bureau Index, FAO – Food and Agriculture Organization
Inflation needs to be monitored closely with Food prices and Commodity prices inching higher
85
90
95
100
105
110
115
120
125
130
Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Aug-21
FAO Food Price Index
340
390
440
490
540
590
Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21
CRB Commodity Index
50. Our Fixed Income View
50
• RBI may have to support growth trajectory and on the other hand RBI would need to keep an eye on upside
risk to inflation.
• The growth recovery got disrupted due to second wave, but we expect it to pick-up
• Inflation trajectory need to be monitored closely
• We continue to believe for a gradual withdrawal of monetary stimulus.
• We believe, as the RBI gains comfort with growth picking-up, the first nudge would be to move the short-
term rates closer to the mid-point of the policy rate corridor.
• As communicated earlier, we believe that we are at the start of interest rate rise cycle.
• In the current phase, more nimble and active duration management strategy is recommended
• We continue to recommend Accrual strategy with an aim to benefit from higher carry.
RBI – Reserve Bank of India
51. Fixed Income Space – Pick your side!
51
Instrument Type
Yields (%)
31-Dec-19 04-Oct-21
AAA(3 Year) 6.80 5.35
A1+(6Mnth CD) 5.56 4.00
Repo Rate 5.15 4.00
Gsec(10 Year) 6.51 6.27
AA(3 Year) 7.85 7.71
A(3 Year) 9.47 9.47
Source: CRISIL Research, Data as on October 04, 2021, CD – Certificate of Deposit, bps – basis points, Past performance may or may not sustain in future
145 156
115
24 14
0
0
50
100
150
200
250
AAA(3
Year)
A1+(6Mnth
CD)
Repo
Rate
Cut
Gsec(10
Year)
AA(3
Year)
A(3
Year)
Rate Transmission (bps) for from 31-Dec-2019
Value Zone
Expensive Zone
52. Some Basics with illustrations
52
Steeper the yield curve, higher the term premium,
which may make the longer end of the
yield curve more attractive
Yield 1
Yield 2
Yield 3
Rate
(%)
Duration (Years)
Term Premium
Higher the spread premium, higher would be the risk
reward benefit to move to higher spread assets
Instrument Name Yield (%) Premium (%)
3 Year -GSEC X -
3 Year- AAA Y Y minus X
3 Year- AA Z Z minus X
Credit Spread/Spread Premium
53. Current Scenario
53
Currently, the term premium is at one of the highest
levels seen in the last 10 years
Term Premium
Currently, the spread premium is reasonably high
compared to repo rate
Credit Spread/Spread Premium
Source: CRISIL Research, Data as on Sep 30, 2021. Past performance may or may not sustain in future
-3
-2
-1
0
1
2
3
4
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
Sep-15
Sep-16
Sep-17
Sep-18
Sep-19
Sep-20
Sep-21
Term Premium (10 Yr Gsec - 1 Yr Tbill) % Long Term Average Premium %
Average 85 bps
247 bps
3
4
5
6
7
8
9
6 Months 1 Yr 3 Yr 5 Yr
Yields
(%)
AA AAA Gsec Repo Rate
Avg. 103 bps
Avg. 60 bps
S
P
R
E
A
D
Avg. 354 bps
54. Product Strategy & Recommendations –
Surplus Parking Space
54
Maintain Duration and add spread assets to the portfolio
Repo Rate
Low carry zone over repo
Data as of September 30, 2021., Past performance may or may not sustain in future. This graph is used to indicate current YTM and does not indicate in any manner performance of the scheme.
3.3
3.5
3.8
4.7 4.6
5.2
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
ICICI Prudential
Overnight Fund
ICICI Prudential Liquid
Fund
ICICI Prudential
Money Market Fund
ICICI Prudential
Savings Fund
ICICI Prudential Ultra
Short Term Fund
ICICI Prudential
Floating Interest Fund
YTM-30-September-2021 (%)
55. 5.0
5.9
5.0
6.2
5.6
6.8
3.0
4.0
5.0
6.0
7.0
8.0
9.0
ICICI Prudential
Corporate Bond Fund
ICICI Prudential
Banking & PSU Debt
Fund
ICICI Prudential Short
Term Fund
ICICI Prudential
Medium Term Bond
Fund
ICICI Prudential All
Seasons Bond Fund
ICICI Prudential Credit
Risk Fund
YTM -30-September-2021 (%)
Product Strategy & Recommendations –
Short Term Parking Space
55
Maintain Duration and add spread assets to the portfolio
Data as of September 30, 2021., Past performance may or may not sustain in future. This graph is used to indicate current YTM and does not indicate in any manner performance of the scheme.
Repo Rate
Modified
Duration :
2.5 Yrs.
Modified
Duration :
2.5 Yrs.
56. Portfolio Positioning
56
• Across our portfolios we aim to manage duration actively
• In short duration schemes, we aim to run Barbell Strategy to benefit from term premium
and to reduce interest rate volatility
• In Schemes which aim to invest in short end of the yield curve, we have added
exposure towards Floating Rate Bonds (FRB)
• We have added good quality AA Corporate Bond in select portfolios, due to higher
spread premium
57. Why Active Duration now ?
57
• We are at the fag end of
interest rate cut cycle. Hence, it
is prudent to keep portfolios
nimble.
• We expect interest rate
volatility due to moderation in
RBI stance on liquidity.
• High term premium (difference
in yield between the long and
short end of the curve) provides
opportunity to create returns by
active management of duration
58. Scheme Name
(A) (B) (C)
Change in Mod
Duration (C-B)
Mod Duration in Yrs
(Nov 30,2020)
Mod Duration in Yrs
(Aug 31,2021)
Mod Duration in Yrs
(Sep 30,2021)
ICICI Prudential Liquid Fund 0.10 0.11 0.1 -0.01
ICICI Prudential Money Market Fund 0.33 0.28 0.25 -0.03
ICICI Prudential Ultra Short Term Fund 0.39 0.3 0.31 0.01
ICICI Prudential Savings Fund 0.89 0.94 1.08 0.14
ICICI Prudential Floating Interest Fund 1.19 0.93 1.51 0.58
ICICI Prudential Credit Risk Fund 2.09 1.97 1.73 -0.24
ICICI Prudential Short Term Fund 2.41 2.36 1.73 -0.63
ICICI Prudential Corporate Bond Fund 2.94 2.43 2.52 0.09
ICICI Prudential Banking & PSU Debt Fund 3.30 3.68 3.8 0.12
ICICI Prudential Medium Term Bond Fund 3.23 3.05 2.53 -0.52
ICICI Prudential Bond Fund 5.05 5.36 4.33 -1.03
ICICI Prudential All Seasons Bond Fund 4.34 4.07 2.46 -1.61
ICICI Prudential Long Term Bond Fund 7.82 8.62 8.63 0.01
ICICI Prudential Gilt Fund 7.66 5.79 6.09 0.3
Active Duration Management
58
Data as on September 30, 2021
59. Our Duration Management Strategy
59
Over the last 3-4months we had added duration to our portfolios due to the following reasons:
1. GDP growth rate getting slashed due to second wave
2. RBI Accommodative stance to continue until growth picks-up
3. Yield Curve Control: RBI is actively managing the yield curve with its regular Open Market Operations
(OMOs) along with the recently launched G-Sec acquisition program
4. Benefit from Higher Term Premium: Currently, the term premium is at one of the highest levels seen in the
last 10 years at around 247 bps. We have tactically taken exposure on the longer end of the curve to
capture the term premium.
However, with the unlock phase beginning and COVID cases declining, growth is expected to improve and
hence we have started moderating duration from June onwards.
60. Scheme Name
Cash* +
Gsec^
AAA/A1+ AA Below AA-
YTM
Modified
Duration
(% Holding) (% Holding) (% Holding)
ICICI Prudential Overnight Fund 100.0% 0.0% 0.0% 0.0% 3.3% 1 Day
ICICI Prudential Liquid Fund 42.6% 57.4% 0.0% 0.0% 3.5% 36 Days
ICICI Prudential Money Market Fund 39.7% 60.3% 0.0% 0.0% 3.8% 91 Days
ICICI Prudential Ultra Short Term Fund 24.2% 44.5% 29.0% 2.3% 4.6% 114 Days
ICICI Prudential Savings Fund 60.9% 29.8% 9.3% 0.0% 4.7% 395 Days
ICICI Prudential Floating Interest Fund 62.9% 18.9% 18.2% 0.0% 5.2% 551 Days
ICICI Prudential Corporate Bond Fund 29.3% 70.7% 0.0% 0.0% 5.0% 2.5 Yrs
ICICI Prudential Short Term Fund 47.5% 35.5% 17.0% 0.0% 5.0% 1.7 Yrs
ICICI Prudential Banking & PSU Debt Fund 28.7% 52.6% 18.7% 0.0% 5.9% 3.8 Yrs
ICICI Prudential Medium Term Bond Fund 26.1% 13.3% 60.7% 0.0% 6.2% 2.5 Yrs
ICICI Prudential Credit Risk Fund#
20.8% 6.5% 58.6% 10.4% 6.8% 1.7 Yrs
ICICI Prudential All Seasons Bond Fund 51.9% 10.8% 37.3% 0.0% 5.6% 2.5 Yrs
Maintain Duration & Add Spread Assets
60
Spread Assets
Data as on September 30, 2021, Past performance may or may not be sustained in future, * Includes TREPS & Net Current Assets, ^ Includes Treasury Bills, # - Excludes unrated which stands at 3.7%
61. Our Debt Valuation Index for Duration Risk Management
61
We remain cautious on
duration as the interest rates
are expected to remain
volatile due to RBI
normalizing liquidity and
upside risk to inflation due to
economic recovery
Data as on September 30, 2021. Debt Valuation Index considers WPI, CPI, Sensex returns, Gold returns and Real estate returns over G-Sec yield, Current Account Balance, Fiscal Balance, Credit Growth and Crude Oil
Movement for calculation.
Aggressive
Highly Aggressive
Highly Aggressive
Aggressive
Moderate
Cautious
Very Cautious
1.78
0
1
2
3
4
5
6
7
8
9
10
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Highly Aggressive
Aggressive
Moderate
Cautious
Very Cautious
62. Scheme Recommendations – Fixed Income/Arbitrage/Hybrid
62
Approach Scheme Name Call to Action Rationale
Arbitrage ICICI Prudential Equity Arbitrage Fund
Invest with 3 Months &
above horizon
Spreads at
reasonable levels
Measured Equity ICICI Prudential Equity Savings Fund
Invest with 6 Months &
above horizon
Potential for upside
and limiting downside
Short Duration
ICICI Prudential Savings Fund
ICICI Prudential Ultra Short Term Fund
ICICI Prudential Floating Interest Fund
Invest for parking
surplus funds
Accrual + Moderate
Volatility
Accrual Schemes
ICICI Prudential Credit Risk Fund
ICICI Prudential Medium Term Bond Fund
Core Portfolio with >1 Yr
investment horizon
Better Accrual
Dynamic Duration ICICI Prudential All Seasons Bond Fund
Long Term Approach with
>3 Yrs investment
horizon
Active Duration and
Better Accrual
63. 63
Basics of Floating Rate Bonds
5% 5% 5%
0%
1%
2%
3%
4%
5%
6%
1 Year 2 Year 3 Year
Normal Bonds
5.0%
5.5%
6.0%
4%
5%
6%
1 Year 2 Year 3 Year
Floating Rate Bonds
Floating Rate Bonds (FRB) are bonds that have a variable coupon, equal to a money market
reference rate, like MIBOR or T-bill, plus a quoted spread. These bonds aim to hedge against rising
interest rate risk and provide market linked returns
ICICI Prudential Floating Interest Fund
64. Our Equity Schemes
64
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 Situations theme
ICICI Prudential Business Cycle Fund An open ended equity scheme following Business Cycles based investing theme
ICICI Prudential Focused Equity Fund
An open ended equity scheme investing in maximum 30 stocks across market-capitalization i.e.
focus on multicap
ICICI Prudential Dividend Yield Equity Fund An open ended equity scheme predominantly investing in dividend yielding stocks
ICICI Prudential Infrastructure Fund An open ended equity scheme following infrastructure theme
ICICI Prudential Flexicap Fund An open ended dynamic equity scheme investing across large cap, mid cap & small cap stocks
65. Our Hybrid Schemes / Fund of Funds Scheme
65
Scheme Name Type of Scheme
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.
Scheme Name Type of 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 and Exchange Traded Commodity
Derivatives/units of Gold ETFs/units of REITs & InvITs/Preference shares
*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.
66. Our Fixed Income Schemes
66
Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price
Scheme Name Type of Scheme
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 low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is
between 6 months and 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 and Municipal Bonds
ICICI Prudential Corporate Bond Fund An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds.
ICICI Prudential Money Market Fund An open ended debt scheme investing in money market instruments
ICICI Prudential Liquid Fund An open ended liquid scheme
ICICI Prudential Bond Fund
An open ended medium to long term debt scheme investing in instruments such that the Macaulay duration of the portfolio is
between 4 Years and 7 Years. The Macaulay duration of the portfolio is 1 Year to 7 years under anticipated adverse situation
ICICI Prudential Gilt Fund An open ended debt scheme investing in government securities across maturity
ICICI Prudential Overnight Fund An open ended debt scheme investing in overnight securities
ICICI Prudential Long Term Bond Fund An open ended debt scheme with Macaulay duration greater than 7 years
67. Riskometers
67
ICICI Prudential Multi-Asset Fund is suitable for investors whoare 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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*:
Long term capital appreciation/income
Investing in equity and equity related securities and debt instruments.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Bluechip Fund is suitable for investors who are seeking*:
Long term wealth creation
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
68. Riskometers
68
ICICI Prudential Value Discovery Fund is suitable for investors who are seeking*:
Long term wealth creation
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
ICICI Prudential Large & Mid Cap Fund is suitable for investors whoare seeking*:
Long term wealth creation
An open ended equity scheme investing in both largecap and mid cap stocks
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
69. Riskometers
69
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential All Seasons Bond Fund is suitable for investors who are seeking*:
All durationsavings
A debt scheme that invests in debt and money market instruments with a view to maximize income while maintaining optimum balance
of yield, safety andliquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price
70. Riskometers
70
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
ICICI Prudential India Opportunities Fund (The scheme is suitable for investors who are seeking*)
Long term wealth creation
An equity scheme that invests in stocks based on special situations theme.
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Equity Savings Fund is suitable for investors who are seeking*:
Long term wealth creation
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.
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem
Investors understand that
their principal will be at
Low to Moderate Risk
71. Riskometers
71
ICICI Prudential Multicap Fund is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme investing across largecap, mid cap and small cap stocks.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Savings Fund is suitable for investors who are seeking*:
Short term savings
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*:
Short term savings
An open ended debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial
Institutions and Municipal Bonds
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
ICICI Prudential Corporate Bond Fund is suitable for investors whoare seeking*:
Short term savings
An open ended debt scheme predominantly investing in highest rated corporate bonds
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price
Investors understand that
their principal will be at
Low to Moderate Risk
72. Riskometers
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ICICI Prudential Money Market Fund is suitable for investors who are seeking*:
Short term savings
A money market scheme that seeks to provide reasonable returns, commensurate with low risk while providing a high level of
liquidity
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
•Long Term wealth creation
•An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETF/schemes.
*Investorsshouldconsulttheirfinancialadvisorsif in doubtaboutwhetherthe productis suitablefor them.
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) is suitable for investors who are seeking*:
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.
ICICI Prudential Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across market-capitalisation
i.e focus on multicap) is suitable for investors who are seeking*:
• Long term wealth creation
• An open ended equity scheme investing in maximum 30 stocks across market-capitalisation.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Gilt Fund is suitable for investors who are seeking*:
Long term wealth creation
A Gilt scheme that aims to generate income through investment in Gilts of various maturities.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
73. Riskometers
73
ICICI Prudential Liquid Fund (an open ended liquid fund) is suitable for investors who are seeking*:
Short term savings solution
A liquid fund that aims to provide reasonable returns commensurate with low risk and providing a high level of liquidity
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ICICI Prudential Overnight Fund (an open ended debt scheme investing in overnight securities) is suitable for investors who are
seeking*:
Short term savings solution
An overnight fund that aims to provide reasonable returns commensurate with low risk and providing a high level of liquidity
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Long Term Bond Fund is suitable for investors who are seeking*:
Long term wealth creation
A debt scheme that invests in debt and money market instruments with an aim to maximise income while maintaining an optimum balance of
yield, safety and liquidity.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ICICI Prudential Bond Fund is suitable for investors who are seeking*:
Medium to Long term savings
A debt scheme that invests in debt and money market instruments with an aim to maximise income while maintaining an optimum balance of
yield, safety and liquidity.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
74. Riskometers
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ICICI Prudential Business Cycle Fund (An open ended equity scheme following business cycles based investing theme) is suitable for
investors who are seeking*:
Long Term wealth creation
An equity scheme that invests in Indian markets with focus on riding business cycles through dynamic allocation between various
sectors and stocks at different stages of business cycles
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Dividend Yield Equity Fund (An open ended equity scheme predominantly investing in dividend yielding stocks) suitable
for investors who are seeking*:
Long Term wealth creation
An open ended equity scheme that aims for growth by primarily investing in equity and equity related instruments of dividend yielding companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Equity Arbitrage Fund (An open ended scheme investing in arbitrage opportunities) is suitable for investors who are seeking*
Short Term Income Generation
A hybrid scheme that aims to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in
debt and money market instruments
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
ICICI Prudential Infrastructure Fund (An open ended equity scheme following Infrastructure theme) is suitable for investors who are seeking*
Long Term Wealth Creation
An open ended equity scheme that aims for growth by primarily investing in companies belonging to infrastructure & allied sectors
*Investors should consult their financial advisors if in doubt about whether the product is suitable forthem.
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis . The above Riskometers are as on September 30,2021. Please refer to https://www.icicipruamc.com/news-and-
updates/all-news for more details.
75. Riskometers
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ICICI Prudential Flexicap Fund (An open ended dynamic equity scheme investing across large cap, mid cap & small cap stocks) is
suitable for investors who are seeking*:
•Long Term wealth creation
•An open ended dynamic equity scheme investing across large cap, mid cap and small cap stocks
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis. The above riskometers are as on September 30, 2021 Please refer to https://www.icicipruamc.com/news-and-updates/all-
news for more details.
76. Benchmark Riskometers
76
Benchmark Riskometers as on September 30, 2021
Scheme Name Scheme Benchmark Name
ICICI Prudential Bluechip Fund Nifty 100 TRI
ICICI Prudential Long Term Equity Fund (Tax
Saving)
NIFTY 500 TRI
ICICI Prudential ESG Fund Nifty 100 ESG TRI
ICICI Prudential Value Discovery Fund Nifty 500 Value 50 TRI
ICICI Prudential Multicap Fund NIFTY 500 Multicap 50:25:25 TRI
ICICI Prudential Focused Equity Fund S&P BSE 500 TRI
ICICI Prudential Large & Mid Cap Fund Nifty LargeMidcap 250 TRI
ICICI Prudential Midcap Fund Nifty Midcap 150 TRI
ICICI Prudential Smallcap Fund Nifty Smallcap 250 TRI
ICICI Prudential Business Cycle Fund NIFTY 500 TRI
ICICI Prudential Infrastructure Fund S&P BSE India Infrastructure TRI
ICICI Prudential Flexicap Fund S&P BSE 500 TRI
ICICI Prudential Dividend Yield Fund Nifty Dividend Opportunities 50 TRI
77. Scheme Name Scheme Benchmark Name
ICICI Prudential Regular Savings Fund Nifty 50 Hybrid Composite Debt 15:85 Index
ICICI Prudential Equity Savings Fund Nifty Equity Savings TRI
ICICI Prudential Equity & Debt Fund CRISIL Hybrid 35+65 - Aggressive Index
ICICI Prudential Multi-Asset Fund
Nifty 200 TRI (65%) + Nifty Composite Debt Index
(25%) + LBMA AM Fixing Prices (10%)
ICICI Prudential Balanced Advantage Fund
CRISIL Hybrid 50+50 - Moderate Index
ICICI Prudential Asset Allocator Fund (FOF)
ICICI Prudential Credit Risk Fund CRISIL Short Term Credit Risk Index
Benchmark Riskometers
77
Benchmark Riskometers as on September 30, 2021
78. Benchmark Riskometers
78
Benchmark Riskometers as on September 30, 2021
Scheme Name Scheme Benchmark Name
ICICI Prudential Overnight Fund CRISIL Overnight Index
ICICI Prudential Equity Arbitrage Fund Nifty 50 Arbitrage Index
ICICI Prudential Corporate Bond Fund CRISIL AAA Short Term Bond Index
ICICI Prudential Liquid Fund Crisil Liquid Fund Index
ICICI Prudential Ultra Short Term Fund Nifty Ultra Short Duration Debt Index
79. 79
Scheme Name Scheme Benchmark Name
ICICI Prudential Banking & PSU Debt Fund CRISIL Banking and PSU Debt Index
ICICI Prudential Gilt Fund CRISIL Dynamic Gilt Index
ICICI Prudential Floating Interest Fund CRISIL Low Duration Debt Index
ICICI Prudential Medium Term Bond Fund CRISIL Medium Term Debt Index
ICICI Prudential Money Market Fund CRISIL Money Market Index
ICICI Prudential Short Term Fund CRISIL Short Term Bond Fund Index
ICICI Prudential All Seasons Bond Fund Nifty Composite Debt Index
ICICI Prudential Long Term Bond Fund Nifty Long Duration Debt Index
ICICI Prudential Savings Fund Nifty Low Duration Debt Index
ICICI Prudential Bond Fund Nifty Medium to Long Duration Debt Index
Benchmark Riskometers as on September 30, 2021
80. Disclaimer
80
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 pub- licly 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 mem- bers/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 informa- tion. 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 Lim- ited (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.