August Earnings Beat Estimates Fixed Income Low Duration Opportunity

Transcription

1 Equity Monthly Market Outlook August 2018 Earnings Beat Estimates Fixed Income Low Duration Opportunity 1

2 Index Returns (%) World Index World indices rallied in July 2018 on the back of improved earnings reports. Further, strengthening US and European economies also aided sentiment. However, the Chinese economy continued to show signs of weakness Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Europe - 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 June 29, 2018 July 31,

3 Index Returns (%) Sector and Market-cap based Index Earning recovery seems to have impacted all sectors as at least half of the BSE 100 companies that have reported earnings so far have managed to beat estimates. Largecap stocks led the rally during the month Index 1 Month (%) S&P BSE Sensex 6.16 S&P BSE MidCap 3.64 S&P BSE SmallCap 3.44 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. Data Source: MFI; Returns are absolute returns for the PRI variant of the index calculated between June 29, 2018 July 31,

4 Equity Outlook Earnings Beat Estimates 4

5 Earnings Beat Estimates 1QFY19 Earnings Beats / Misses Tally vis-à-vis Estimates Revenue No. of companies beating estimates No. of companies neutral vis-à-vis estimates PAT No. of companies beating estimates No. of companies neutral vis-à-vis estimates Consumer Discretionary 0/6 1/6 0/6 0/6 Consumer Staples 1/5 3/5 1/5 3/5 Energy 1/2 0/2 1/2 1/2 Financials 4/14 6/14 8/14 2/14 Health Care 1/3 2/3 2/3 1/3 Industrials 3/5 1/5 3/5 1/5 Information Technology 0/5 4/5 3/5 1/5 Materials 3/8 4/8 4/8 3/8 Telecommunication Services 0/3 3/3 2/3 0/3 Utilities 1/3 0/3 0/3 0/3 S&P BSE /54 24/54 24/54 12/54 Of the 54 companies which have announced their 1QFY19 results as of July 31, 2018 PAT has been positive for most companies Companies belonging to the healthcare, IT, and industrials have seen their PAT numbers exceeding estimates Source: Citi Research; PAT Profit After Tax; Data as of July 31, 2018; The stocks/sectors mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in these stocks/sectors. 5

6 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Manufacturing / Services PMI at highs Manufacturing PMI was at a six-month high of 53.1 Services PMI was at a 12- month high of Manufacturing PMI 3mma 56 Services PMI 3mma Source: CLSA report dated July 27, 2018; Data as of June 30, 2018: PMI Purchasing Managers Index; 3mma Three-month moving average; YoY Year-on-Year 6

7 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Micro factors improving - Auto sales growth 2W sales were up 22% YoY, a four-month high PV (cars + SUV) sales were up 38% YoY Tractor sales were up 36% YoY in June 50 % 2W sales (% YoY) 3mma % 50 % PV sales (% YoY) 3mma % % Tractor sales (% YoY) 3mma (% YoY) Source: CLSA report dated July 27, 2018; Data as of June 30, 2018; 2w Two Wheelers; PV Passenger Vehicles; SUV Sport Utility Vehicles; 3mmma Three-month moving average; YoY Year-on-Year 7

8 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 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 Micro factors improving Port Volume growth and higher Fuel Consumption % YoY Port volume growth at 7.1% YoY in June 2018 highest in four months Cargo traffic at major ports (% YoY) 3mma % YoY) % YoY Petrol consumption was up 15% in June and diesel was up 8% YoY Petrol Consumption (% YoY) Diesel consumption (% YoY) Source: CLSA report dated July 27, 2018; Data as of June 30, 2018; YoY Year-on-Year 8

9 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 DII Flows (in Rs mn) Market supported by DII flows 12,000 10,000 Domestic Institutional Investors (DIIs) monthly flows 8,864 10,426 8,000 7,252 6,000 4,000 3,852 5,013 2, (2,000) Source: Citi Research; Data as of July 31, 2018: YTD Year To Date 9

10 To Summarize our Outlook on Equity Markets moved up 6% during July 2018 on easing crude oil prices, stabilising rupee, and decent 1QFY19 results Further, GST Council s decision to cut rates and the govt stepping up fiscal stimulus by hiking MSP for the summer crops aided market sentiment Mid and smallcaps continued to underperform broader markets despite an upmove of 4% Key risks to watch out for - higher global interest rates, volatility in crude oil prices, and the govt s commitment towards fiscal discipline in the run-up to the 2019 election We believe that markets are likely to remain volatile over the next 12 months and we continue to prefer largecaps based on valuations. For investors who are looking at pure equity exposure - Large-cap oriented schemes Investors with a longer horizon and an appetite for volatility - Systematic/staggered investments in mid and smallcaps Export-oriented ideas owing to their reasonable valuations and due to select macroeconomic factors such as rupee depreciation, CAD worsening, among others which could turn favourable for this theme. We recommend investing in Asset Allocation Schemes or Conservative Hybrid Schemes which could benefit out of volatility CAD Current Account Deficit; GST Goods and Services Tax; MSP Minimum Support Price 10

11 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Valuation Index Equity Valuation Index Book Partial Profits Stay Invested RSF/ESF/BAF Multi-Asset/E&DF Our equity valuation index indicates that investors should stay invested in equity, preferably largecap-oriented schemes 90 Multicap Schemes 70 Midcap Schemes 50 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; ESF ICICI Prudential Equity Savings Fund; BAF ICICI Prudential Balanced Advantage Fund; Multi-Asset ICICI Prudential Multi-Asset Fund; RSF: ICICI Prudential Regular Savings Fund; E&DF -- ICICI Prudential Equity & Debt Fund; Asset Allocation Schemes that invest both in equity and fixed income Data as of July 31, 2018; Past Performance may or may not be sustained in future. 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. 11

12 Our Asset Allocation Hybrid schemes These schemes aim to benefit from volatility and manage equity exposure based on valuations. ICICI Prudential Regular Savings Fund* Conservative Hybrid Fund ICICI Prudential Equity Savings Fund Equity Savings Fund ICICI Prudential Balanced Advantage Fund Dynamic Asset Allocation or Balanced Advantage Fund ICICI Prudential Multi-Asset Fund Multi Asset Allocation Min of 10% in three asset classes ICICI Prudential Equity & Debt Fund Aggressive Hybrid Net Equity 65-80% Net equity % Net Equity 10-25% Net Equity 15-50% The asset allocation and investment strategy will be as per the Scheme Information Document, *This scheme will attract debt taxation. 12

13 Thematic/Sectoral Pure Equity SIP Recommendations Our Equity Recommendations ICICI Prudential Bluechip Fund The scheme invests in largecap stocks. It follows a benchmark hugging approach. ICICI Prudential Midcap Fund ICICI Prudential Smallcap Fund The scheme predominantly invests in midcap stocks The scheme predominantly invests in Smallcap stocks ICICI Prudential Multicap Fund The scheme invests in stocks across market capitalisation ICICI Prudential Value Discovery Fund The scheme follows a value investment strategy. ICICI Prudential Large & Mid Cap Fund The scheme invests in largecap as well as midcap stocks ICICI Prudential Exports and Services Fund This scheme focuses on exports and services theme. The asset allocation and investment strategy will be as per the Scheme Information Document 13

14 Fixed Income Outlook Low Duration Opportunity 14

15 RBI rate hike 25 bps RBI Repo Rate action since 2013 Jan-13 Mar-13 May Sep-13 Oct-13 Jan Jan-15 Mar-15 Jun-15 Sep Apr-16 Oct-16 Aug Jun-18 Aug CUT HIKE CUT CUT HIKE RBI hiked the repo rate by 25 bps on Aug 01, 2018 due to concerns on: Rising inflation Volatile crude oil prices Possibility of fiscal slippage at centre or state level Source: RBI; Data as of 01 Aug, 2018; bps basis points 15

16 Inflationary Pressures Volatile crude oil prices, weakening rupee, and rise in input costs has resulted in higher inflationary pressures in the economy 6.6 CPI Inflation (%) In its August Monetary Policy Committee meeting, the RBI reiterated its CPI inflation projection at % for 1HFY19 and 4.7% for 2HFY19. Source: RBI; Data as on June 30, 2018; CPI Consumer Price Index; 1HFY19 First half of FY19; 2HFY19 Second half of FY19 16

17 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 USD/barrel Rising Crude Oil Prices Crude oil prices have been on the rise over the last one-year period on account of growing tensions in the Middle-East leading to supply-side constraints Brent crude oil prices (in USD/barrel) The Organisation of the Petroleum Exporting Countries (OPEC) s meeting in Vienna in June 2018 ended with the member countries agreeing to increase crude oil production by one million barrel to curb rising prices and address concerns of supply shortage. Source: CRISIL Research; Data as on July 31,

18 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 FY19BE average Sluggish GST Collection 1,200 1, Rs bn Total Monthly GST Collections 1, % ,123 While GST collection has been increasing 600 month-on-month since 400 April 2018, it is still 200 below the monthly 0 budgeted estimate. Source: CLSA report dated July 27, 2018; Data as on June 30, 2018.; BE Budgeted Estimate 18

19 Dec-11 Jul-12 Feb-13 Sep-13 Apr-14 Nov-14 Jun-15 Jan-16 Aug-16 Mar-17 Oct-17 May-18 Jul-18 Yields (%) Tread with caution in the debt market The 10-yr G-Sec yield continues to remain volatile 10-yr G-sec yields Debt markets would continue to remain cautious on account of: Rising Crude Oil Prices Rate hikes by Central Banks Imposition of trade barriers Uptick in core inflation Increase in Minimum Support Price 5.5 Fiscal Slippage at the centre or state level Source: CRISIL Research; Data as of July 31,

20 To summarize our Outlook on Fixed Income The 10 year benchmark yield touched a high of 7.91% at the start of July to finally settle at 7.77% by the end of it In its August Policy meet, the RBI hiked repo rate by 25 basis points to 6.5%; but the central bank did not formally tighten its stance and have kept it open for the next policy Rate hike announced on the back of rising inflation attributed to volatile oil prices, cautious global markets, possibility of fiscal slippages, increase in MSP and HRA revision by the govt We expect inflation to average around 4.8% in FY19 with a slightly upward bias Respite for inflation, as monsoon remains close to the average. However, spatial and temporal distribution needs to be monitored. Global risks uncertainty in crude oil prices, rising trade protectionism, and unwinding of quantitative easing by central banks Domestic risks Commitment towards fiscal discipline in an election year given slow pick-up in GST collection We continue to remain cautious on the fixed income space and recommend investors to invest in low duration schemes which can mitigate interest rate volatility, accrual schemes which can capture the current elevated yields and dynamic duration schemes which can benefit from volatility. Source: CRISIL Research, RBI; MSP Minimum Support Price 20

21 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Debt Valuation Index High Duration Moderate Duration Low Duration Ultra Low Duration Aggressively in High Duration 1.72 We recommend investors to invest in schemes with lower duration or accrual schemes such as ICICI Prudential Credit Risk Fund For those investors who aim to benefit from volatility we recommend investors to invest in ICICI Prudential All Seasons Bond Fund. 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. Data as of July 31,

22 Ultra Short Duration Credit Risk Medium Duration Floater Fund Low Duration Short Duration Dynamic Duration Our Debt Recommendations ICICI Prudential Short Term Fund ICICI Prudential Savings Fund The scheme invests with the aim to maintain a short duration The scheme invests with the aim to maintain a low duration ICICI Prudential All Seasons Bond Fund An All-season scheme which invests across duration based on an in-house CAD model ICICI Prudential Medium Term Bond Fund The scheme invests with the aim to maintain a medium duration with focus on accrual income ICICI Prudential Floating Interest Fund The scheme invests predominantly in floatingrate instruments ICICI Prudential Ultra Short Term Fund The scheme invests with the aim to maintain a low duration with focus on accrual income ICICI Prudential Credit Risk Fund The scheme invests predominantly in AA and below rated credit instruments with a Holdtill-maturity approach The asset allocation and investment strategy will be as per the Scheme Information Document. CAD: Current Account Deficit 22

23 Update on Key Schemes 23

24 Sensex Levels BAF Net Equity Exposure (%) ICICI Prudential Balanced Advantage Fund (An open ended dynamic asset allocation fund):aim to Benefit From Market Volatility 36,000 33,000 30,000 27,000 24,000 21,000 18,000 15,000 S&P BSE Sensex Levels vis-a-vis ICICI Prudential BAF Net Equity Exposure (%) Net Equity ,620 29,183 Net Equity Net Equity ,002 Net Equity , Stock Selection Blend of Large and Mid Cap Stocks Asset Allocation Net Equity Level Range 30-80% based on In- House Model Derivative Strategy Derivative Exposure for Hedging / Portfolio Rebalancing Sensex Level Net Equity Exposure % Source: BSE India & MFI Explore;, As on 31 st July, ICICI Prudential BAF stands for ICICI Prudential Balanced Advantage Fund. The in-house valuation model starts from March 2010 onwards. 24

25 SIP for the Long Run SIP ICICI Prudential Large & Midcap Fund (An open ended equity scheme investing in both largecap and midcap 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) 25

26 ICICI Prudential Exports and Services Fund (An open ended equity scheme following Exports & Services theme): Flexibility to move between themes Export Oriented Pharmaceuticals IT Auto Ancillaries Chemicals Textiles Services Oriented Banking & Financials Construction Transportation & Logistics Telecom Hotels Media & Entertainment Power Retail Hospitals The scheme is well diversified across different sectors and is a broader play on the Indian economy. Also, the flexibility to move portfolios from Export-oriented sectors to Domestic-oriented sectors makes this scheme suitable for long-term investment and not as a tactical product The asset allocation and investment strategy will be as per the Scheme Information Document. The stocks/sectors mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in these stocks/sectors. 26

27 Modified Duration (in yrs) 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) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul ICICI Prudential Ultra Short Term Fund Low Duration Play - Anticipating volatility, the scheme has reduced its modified duration over the last one year to 0.27 yrs (as on July 31, 2018) Margin of Safety - The Yield To Maturity (YTM) of the portfolio of the Scheme is at 8.58% as on July 31, 2018, 233 bps higher than the repo rate. Source: MFI Explorer, CRISIL Research; Data as of July 31, 2018; bps - basis points; Past performance may or may not be sustained in future.*the 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. 27

28 Accrual based schemes investment process Well Researched Credit Universe Based on various filters, qualitative and quantitative research Broadened Exposure Mitigating concentration risk by diversification Managing Duration Risk Clearly defined modified duration range The scheme has an Independent credit evaluation, approval and monitoring process which is not solely relying on the Fund Manager judgement to invest in a paper. The scheme focuses on direct origination* which helps in alpha generation and monitoring. Strict Internal Limits at Issuer Level and rating level The asset allocation and investment strategy will be as per Scheme Information Document. *Direct origination means no involvement of intermediaries. 28

29 ICICI Prudential Credit Risk Fund (An open ended debt scheme predominantly investing in AA and below rated corporate bonds) The scheme portfolio is well-diversified across a large number of securities which reduces risk pertaining to high exposure in a single bond. 86 No. of securities in the scheme portfolio 1.08 % 5.28 % Average exposure to a single security in the portfolio Highest exposure to single security in the portfolio Invests in well researched corporate bonds Generates alpha from any potential credit upgrades 31.3 % Exposure (as % of NAV) to the top 10 holdings in the portfolio Aims to maintain accrual income with Hold-to-Maturity approach Source: MFI Explorer; Data as of July 31, 2018; 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. 29

30 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Modified Duration (in yrs) 10-yr G-sec yields (%) ICICI Prudential All Seasons Bond Fund (An open ended dynamic debt scheme investing across duration) ICICI Prudential All Seasons Bond Fund aims to perform in all market conditions % 9 8.5% 8 8.0% 7 7.5% 6 7.0% 5 6.5% % % 1 5.0% All Seasons Investment Avenue Uses an In-House CAD model to manage duration between 1-10 yrs Aims to benefit from Volatility Tactical Allocation between G-sec and Corporate Securities Modified Duration G Sec (RHS) Source: MFI Explorer, CRISIL Research Data as of July 31, 2018; The asset allocation and investment strategy will be as per the Scheme Information Document. Past performance may or may not be sustained in future. ^rounded off. CAD: Current Account Deficit. 30

31 Our Equity Schemes Scheme Name ICICI Prudential Bluechip Fund ICICI Prudential Large & Mid Cap Fund ICICI Prudential Midcap Fund ICICI Prudential Smallcap Fund ICICI Prudential Value Discovery Fund ICICI Prudential Multicap Fund Type of Scheme An open ended equity scheme predominantly investing in large cap stocks. An open ended equity scheme investing in both large cap and mid cap stocks. An open ended equity scheme predominantly investing in mid cap stocks. An open ended equity scheme predominantly investing in small cap stocks. An open ended equity scheme following a value investment strategy. An open ended equity scheme investing across large cap, mid cap, small cap stocks. ICICI Prudential Exports and Services Fund An open ended equity scheme following Exports & Services theme. 31

32 Our Hybrid Schemes Scheme Namec ICICI Prudential Balanced Advantage Fund ICICI Prudential Regular Savings Fund ICICI Prudential Equity Savings Fund ICICI Prudential Equity & Debt Fund ICICI Prudential Multi-Asset Fund Type of Scheme An open ended dynamic asset allocation fund An open ended hybrid scheme investing predominantly in debt instruments An open ended scheme investing in equity, arbitrage and debt. An open ended hybrid scheme investing predominantly in equity and equity related instruments An open ended scheme investing in Equity, Debt, Gold/Gold ETF/units of REITs & InvITs and such other asset classes as may be permitted from time to time. 32

33 Our Debt Schemes Scheme Name ICICI Prudential Ultra Short Term Fund ICICI Prudential Short Term Fund ICICI Prudential Savings Fund ICICI Prudential Medium Term Bond Fund ICICI Prudential Credit Risk Fund Type of Scheme 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. 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. 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. 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. 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. 33

34 Riskometers ICICI Prudential Multi-Asset Fund is suitable for investors who are seeking*: Long term wealth creation An open ended scheme investing in at least three asset classes with minimum allocation of 10% to each asset class. *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 wealth creation solution An equity fund that aims for growth by investing in equity and derivatives. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 34

35 Riskometers 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 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 who are 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 35

36 Riskometers 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 for them ICICI Prudential Exports and Services Fund is suitable for investors who are seeking*: Long term wealth creation An open-ended equity scheme that aims for growth by predominantly investing in companies belonging to Exports & Services industry. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 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 36

37 Riskometers 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 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 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 37

38 Riskometers 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 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 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 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 38

39 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 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 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 for them 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 for them 39

40 Riskometers 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. 40

41 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 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. 41