Markets

at 60,000 Level
Stock Markets climb a Wall of Worry – An expression coined in 1950’s that depicts a sustained
stock market rise during a time of crisis. With both the global as well as domestic equity markets
on a steady rise over the last one and a half year, despite the pandemic, we have truly lived the afore-
mentioned phrase/quote. S&P BSE Sensex closed above 60000 on Sep 24, 2021. The recent market
rally saw different winners and leaders emerge. Initially we saw the defensive sectors doing well, post
that the baton was shifted to global cyclicals and now the sectors which would benefit from economy
opening-up have started to gain ground.
With optimism around and wealth-effect kicking in, it’s a good time to review our past strategy and if
required, this is an opportune time to initiate a course correction. Keeping the same in mind, a quick
flashback to what we said in our Outlook 2021 and how that view is shaping up.

You may refer to our Outlook-2021 released on Jan 2021, by clicking on the below link:
https://www.icicipruamc.com/downloads/market-outlook

Data Source: MFI Explorer, as on Sep 24, 2021, , MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit
http://www.icraonline.com/legal/standard-disclaimer.html.

What we said in Jan 2021

In our Outlook 2021, we presented the below views:

• We are currently in a Developed World Central Bank Bull Market
• Going forward, we expect multiple turning points and triggers in the coming years to dominate
market movement
• We believe, the current market rally may continue till the time certain turning points/ triggers play
out
• Recent market rally was narrow driven by select Growth stocks. Going forward, we expect broad-
based reasonably valued companies to perform
 Markets at 60000 Level

• Triggers to watch out:

1. Crude Oil touching 60$/bbl
2. US acknowledging inflation & in conclusion pausing stimulus
3. US Treasury yields reaching 2%

Most of our views have played out. More importantly triggers which we were keeping a close eye
have also crossed the threshold levels.

Sensex movement

S&P BSE Sensex

60000
55000
50000
45000
40000
35000
30000
25000
20000
Feb-20

Jul-20

Aug-20

Sep-20
Oct-20

Feb-21

Jul-21

Aug-21

Sep-21
Jan-20

May-20

Jan-21

May-21
Apr-20

Jun-20

Nov-20

Apr-21

Jun-21
Mar-20

Dec-20

Mar-21

Data Source: MFI Explorer, as on Sep 24, 2021, , MFI Explorer is a tool provided by ICRA Online Ltd. For their standard
disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.

Our view going forward

• 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).
 Markets at 60000 Level

Our Equity Valuation Index

170

150 Book Partial Profits

137.5
130 Incremental Money to Debt

110 Neutral

90 Invest in Equities

70
Aggressively invest in Equities
50
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
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 24, 2021

Our recommendation of Equity Allocation and Scheme Selection

The below table acts as a guide for investors who are either over invested or have a balanced exposure or are
under invested in Equity
Overweight Equity Balanced Exposure Underweight Equity

Invest in Equity schemes with

What should you do? Book partial profits Remain invested
flexibility

Move partial profits to Continue investing in Invest in equity schemes with

Hybrid/Fund of Fund schemes. hybrid/Fund of Fund flexibility
Recommended Schemes: schemes Recommended Schemes:
1.ICICI Prudential Balanced Recommended Schemes: 1. ICICI Prudential Flexicap Fund
Advantage Fund 1.ICICI Prudential Multi 2.ICICI Prudential Business
Which Schemes to
2.ICICI Prudential Asset Asset Fund Cycle Fund
invest?
Allocator Fund (FOF) 3.ICICI Prudential Balanced 3. ICICI Prudential Value
3. ICICI Prudential Multi-Asset Advantage Fund Discovery Fund
Fund 2.ICICI Prudential Asset 4. ICICI Prudential Focused
4.ICICI Prudential Equity Allocator Fund (FOF) Equity Fund
Savings Fund 5. ICICI Prudential MNC Fund

Plan of action for SIP/ Continue SIP/STP as the long term view remains intact, we recommend ICICI Prudential Freedom
STP SIP* and ICICI Prudential Booster STP*
 Markets at 60000 Level

Summary

• As highlighted the long-term view remains intact, but medium term view turns cautious.
• Valuations have moved-up and hence it is prudent to exercise caution, especially those investors
who are overweight on equities.
• Trigger: US 10 Year Treasury Yields moving up can result in volatility.
• Dynamic Asset allocation scheme and equity oriented scheme with high flexibility remains our
key recommendations.
• Continue investment in Freedom SIP
• Booster STP recommended across all our Equity schemes including ICICI Prudential Midcap Fund
and ICICI Prudential Smallcap Fund.

We look forward to creating a happy investment experience by recommending the right set of
schemes based on the evolving market conditions and the same will be shared with you in a timely
manner.
*ICICI Prudential Freedom SIP is an optional feature that allows initial investments through SIP, switch to another scheme after a predefined
tenure and SWP post that.
* ICICI Prudential Booster Systematic Transfer Plan is a facility wherein unit holder(s) can opt to transfer variable amount(s) from designated
open ended scheme(s) of ICICI Prudential Mutual Fund to the designated open ended scheme(s) of ICICI Prudential Mutual Fund

Scheme Riskometers

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) is suitable for investors RISKOMETER
who are seeking*: Investors
understand
that their
• Long term wealth creation principal
will be at
• An open ended scheme investing across asset classes. Very high risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

ICICI Prudential Balanced Advantage Fund (An Open Ended Dynamic Asset Allocation Fund)
is suitable for investors who are seeking*: Moderate
• Long term capital appreciation/income RISKOMETER
• Investing in equity and equity related securities and debt instruments. Investors understand
that their principal will
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. be at High risk

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*:
Moderate

RISKOMETER
• Long Term wealth creation
Investors
• An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes understand that their
and gold ETF/schemes. principal will be at
LOW HIGH moderately high risk

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Investors may please note that they will be bearing the expenses of this Scheme in addition to the expenses of the underlying Schemes in which this
Scheme makes investment
 Markets at 60000 Level
ICICI Prudential Equity Savings Fund (An open ended scheme investing in equity, arbitrage and debt.) is
suitable for investors who are seeking*:
Moderate
RISKOMETER
• Long Term wealth creation
Investors
• An open ended scheme that seeks to generate regular income through investments in fixed income understand that their
securities, arbitrage and other derivative strategies and aim for long termcapital appreciation by investing principal will be at
LOW HIGH Low to moderate
in equity and equity related instruments.
risk
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

ICICI Prudential Value Discovery Fund (An open ended equity scheme following a value investment strategy.)
is suitable for investors who are seeking*:
Moderate
RISKOMETER
• Long Term wealth creation
Investors
• An open ended equity scheme following a value investment strategy. understand that their
principal will be at
LOW HIGH Very Highrisk

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

ICICI Prudential Business Cycle Fund (An open ended equity scheme following business cycles based
investing theme) is suitable for investors who are seeking*:
Moderate
RISKOMETER
• Long Term wealth creation
Investors
• An equity scheme that invests in Indian markets with focus on riding business cycles through dynamic understand that
allocation between various sectors and stocks at different stages of business cycles. their principal will
be at Very High
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them. risk

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*:
Moderate
RISKOMETER
• Long Term wealth creation
Investors
• An open ended dynamic equity scheme investing across large cap, mid cap and small cap stocks understand that
their principal will
be at Very High
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them. risk

ICICI Prudential MNC Fund (An open ended equity scheme following MNC Theme*:

RISKOMETER
• Long Term wealth creation Investors understand
• An open ended equity scheme that aims to provide capital appreciation by investing predominantly in that their principal will
equity and equity related securities within MNC space. be at Very High risk

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

ICICI Prudential Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across
market- capitalization i.e. focus on multicap)
RISKOMETER
Investors understand
• Long Term wealth creation
that their principal will
• An open ended equity scheme investing in maximum 30 stocks across market capitalization. be at Very High risk

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

ICICI Prudential Midcap (An open ended equity scheme predominantly investing in mid cap stocks)

RISKOMETER
• Long Term wealth creation Investors understand
• An open-ended equity scheme that aims for capital appreciation by investing in diversified mid cap that their principal will
companies.. be at Very High risk

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

ICICI Prudential Smallcap (An open ended equity scheme predominantly investing in small cap stocks)

RISKOMETER
• Long Term wealth creation Investors understand
• An open ended equity scheme that seeks to generate capital appreciation by predominantly investing in that their principal will
equity and equity related securities of small cap companies. be at Very High risk

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

Please Note :The above riskometers will be updated on a monthly basis.

 Markets at 60000 Level
Benchmark Riskometers

Scheme Name Scheme Benchmark Name

ICICI Prudential Value Discovery Fund Nifty 500 Value TRI

ICICI Prudential Business Cycle Fund S&P BSE India Infrastructure TRI

ICICI Prudential Flexicap Fund S&P BSE 500 TRI

ICICI Prudential MNC Fund Nifty MNC TRI

ICICI Prudential Focused Equity Fund S&P BSE 500 TRI

ICICI Prudential Midcap Fund Nifty Midcap 150 TRI

ICICI Prudential Smallcap Fund Nifty Smallcap 250 TRI

ICICI Prudential Balanced Advantage Fund CRISIL Hybrid 50+50 - Moderate Index

Nifty 200 TRI (65%) + Nifty Composite

ICICI Prudential Multi-Asset Fund Debt Index (25%) + LBMA AM Fixing
Prices (10%)
ICICI Prudential Asset Allocator Fund (FOF) CRISIL Hybrid 50+50 - Moderate Index

Nifty Equity Savings Fund TRI

ICICI Prudential Equity Savings Fund

Scheme Type
Scheme Name Type of Scheme

ICICI Prudential Balanced Advantage Fund An open ended dynamic asset allocation fund
ICICI Prudential Equity Savings Fund An open ended scheme investing in equity, arbitrage and debt.
An open ended scheme investing in Equity, Debt and Exchange Traded
Commodity Derivatives/units of Gold ETFs/units of REITs & InvITs/Preference
ICICI Prudential Multi-Asset Fund shares

ICICI Prudential Value Discovery Fund An open ended equity scheme following a value investment strategy.

ICICI Prudential MNC Fund An open ended Equity scheme following MNC theme
An open ended equity scheme investing in maximum 30 stocks across
ICICI Prudential Focused Equity Fund market-capitalization i.e. focus on multicap

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
 Markets at 60000 Level

Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (the AMC) has
used information that is publicly available, including information developed in-house. Some of the material used in the document
may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made
available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from
reliable sources. The AMC, however, does not warrant the accuracy, reasonableness and / or completeness of any information.
We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”,
“expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”.
Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties
associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political
conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and
interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or
other rates or prices etc. The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors,
personnel and employees, shall not be liable for any loss, damage of any nature, including but not limited to direct, indirect,
punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any
manner. The recipient alone shall be fully responsible/are liable for any decision taken on this material. All figures and other data
given in this document are dated and the same may or may not be relevant in future. The information contained herein should
not be construed as a forecast or promise nor should it be considered as an investment advice. Investors are advised to consult
their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of
subscribing to the units of ICICI Prudential Mutual Fund. The sector(s)/stock(s) mentioned in this communication do not
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these
sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to
changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for more details.
The information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to
buy or sell or solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US")
and/or Canada or for the benefit of US persons (being persons falling within the definition of the term "US Person" under the US
Securities Act, 1933, as amended) or persons residing in Canada.