New Fund Launch

September 8, 2023
ICICI Pru: journey of our funds

Aug Balanced Advantage Fund

21 Business: ₹129 Cr
Oct
Sustainable Equity Fund
21
Business: ₹115 Cr
Sep
22 Mid Cap Fund
Business: 140 Cr

Mid Cap Hybrid Growth Fund

Feb
Business: ₹68 Cr
23

May
Feb
23
23 Constant Maturity Fund
Business: ₹78 Cr

2
ICICI Pru: journey of our funds

Aug Balanced Advantage Fund

21 Business: ₹129 Cr
Oct
Sustainable Equity Fund
21
Business: ₹115 Cr
Sep
22 Mid Cap Fund
Business: 140 Cr
NAV: 12.51

Mid Cap Hybrid Growth Fund

Feb
Business: ₹68 Cr
23
NAV: 11.94

May
Feb
23
23 Constant Maturity Fund
Business: ₹78 Cr

NAV values as of 31st August 2023 3

India: 5th largest economy

Source: Ministry of Statistics and Programme Implementation (MOSPI) IMF, Figures for India in FY 2022 and for others in the calendar year 2021 4
India: fastest growing economy

5
Mid Cap: Leaders of tomorrow

Rising Income

Higher
Rising Increase in
purchasing
Income GDP
power
Higher
Increase
purchasing
in GDP power

Increase in
corporate
Mid Rising
consumpt
Increase in
corporate
Large Rising

Cap Cap
earnings ion consumption
earnings

Increase in
profit- Higher
making demand
companies
Increased
local Increase in
Higher
production profit-making
demand
companies

Increased
local
production

6
Mid Cap: huge growth potential

Mid Caps companies fall in the sweet spot (growth phase) of corporate life cycle
Corporate earnings

Small Cap Mid Cap Large Cap

Market capitalisation Market capitalisation Market capitalisation

< ₹ 15K Cr < ₹ 15K Cr to ₹ 50K Cr Above ₹ 50K Cr

Rank > 250 Rank 101 to 250 Rank 1 to 100

Set up Start up Growth Stability Maturity Sustain

Corporate lifecycle

7
Mid Cap Fund – Sep 22

Midcap Fund

Index:
NIFTY MIDCAP100

Exposure to high
Strategy: Diversification Long term
growth companies
Majority Mid Caps benefit compounding
growth companies

Midcap allocation:
Min 65%

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 0
2000
4000
6000
8000
10000
12000
14000
16000
01-09-2014

01-11-2014

01-01-2015

01-03-2015

01-05-2015

01-07-2015

01-09-2015

01-11-2015

01-01-2016

01-03-2016

01-05-2016

01-07-2016

01-09-2016

01-11-2016

01-01-2017

01-03-2017

01-05-2017

01-07-2017

01-09-2017

01-11-2017

01-01-2018

01-03-2018

01-05-2018

01-07-2018

01-09-2018
Mid Cap – trends in short-term

01-11-2018

01-01-2019

Source: NIFTY Mid cap 150 Index data from August 2014 to August 2023
01-03-2019

01-05-2019

01-07-2019

01-09-2019

01-11-2019

01-01-2020

01-03-2020

01-05-2020

01-07-2020

01-09-2020

01-11-2020

01-01-2021

01-03-2021

01-05-2021

01-07-2021

01-09-2021

01-11-2021

01-01-2022

01-03-2022

01-05-2022

01-07-2022

01-09-2022

01-11-2022

01-01-2023

01-03-2023

01-05-2023

01-07-2023
However, mid cap stocks tend to be volatile in the short-term creating panic in investors

9
Mid Cap Hybrid Growth Fund

Market behaviour
Customer expectation B
Mid Cap Hybrid Growth Fund
Time of
redemption

A 10 year period

Time of
investment • A fund backed by strong economic fundamentals by investing in mid caps
• To offer peace of mind to the customers by smoothening short term market volatility
• Encourage the customers to stay invested and get accelerated growth in the long term

10
Mid Cap Hybrid – February 2022

Midcap Fund Midcap Hybrid Fund

Index: Index:
NIFTY MIDCAP 100 NIFTY MIDCAP 100 & Crisil
Composite Bond Fund Index

Exposure to high
Strategy: Diversification
Strategy:
growth companies
Majority Mid Caps
Blend benefit
of mid caps &
growth companies
debt instruments

Midcap allocation: Midcap allocation:

Min 65% Min 42%

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 0
4000
6000
8000
10000
12000
14000
16000

2000
01-Sep-22
08-Sep-22
15-Sep-22
22-Sep-22
29-Sep-22
06-Oct-22
13-Oct-22

Sep 23, 2022

20-Oct-22
27-Oct-22

Mid Cap Fund Launch

03-Nov-22
10-Nov-22
17-Nov-22
24-Nov-22
01-Dec-22
08-Dec-22
15-Dec-22
22-Dec-22
29-Dec-22
05-Jan-23
12-Jan-23
19-Jan-23
26-Jan-23
02-Feb-23
09-Feb-23
16-Feb-23
23-Feb-23
Mid Cap trends – past 12 months

02-Mar-23
09-Mar-23
Feb 28, 2023

16-Mar-23
23-Mar-23
30-Mar-23
06-Apr-23
13-Apr-23
Mid Cap Hybrid Growth Fund Launch

20-Apr-23
27-Apr-23
04-May-23
11-May-23
18-May-23
25-May-23
01-Jun-23
08-Jun-23
15-Jun-23
22-Jun-23
29-Jun-23
06-Jul-23
13-Jul-23
20-Jul-23
27-Jul-23
03-Aug-23
10-Aug-23
17-Aug-23
24-Aug-23
the past 6 months

31-Aug-23
steady performance in
Mid Caps have put up a

Mid Cap Fund NAV 12.51

Mid Cap Hybrid Growth Fund 11.94

12
India growth story is still intact

2014 2022 2027

Rank
Country GDP Share (%) Country GDP Share (%) Country GDP Share (%)

1 US 17.55 22% US 25.46 25% US 31.09 24%

2 China 10.52 13% China 18.10 18% China 25.72 20%

3 Japan 4.90 6% Japan 4.23 4% India 5.15 4%

4 Germany 3.89 5% Germany 4.08 4% Japan 5.08 4%

5 UK 3.07 4% India 3.40 3% Germany 4.95 4%

6 France 2.86 4% UK 3.07 3% UK 4.02 3%

7 Brazil 2.46 3% France 2.78 3% France 3.32 3%

8 Italy 2.16 3% Russia 2.22 2% Brazil 2.59 2%

9 Russia 2.05 3% Canada 2.14 2% Canada 2.49 2%

10 India 2.04 3% Italy 2.01 2% Italy 2.41 2%

India’s GDP grew at 7.2% in FY 2023 and 7.8% in April to June quarter of FY 2024

13
Source: SBI Research, IMF | GDP figures in ₹ Trillion
Factors favouring India

Demography Domestic
Digitisation
Manufacturing
Young working population Increased efficiency &
Rising income levels Ease of operation Consumption

14
India is in a sweet spot

1 2 3 4

5 6

15
Source: Indiagov.in
What could be different?

Midcap Fund Midcap Hybrid Fund

Index: Index:
NIFTY MIDCAP100 NIFTY MIDCAP100 & Crisil What more
Composite Bond Fund Index

Exposure to high can be done

Strategy: Diversification
Strategy:
Long term
growth companies
Majority Mid Caps
Blend benefit
growth companies of mid caps & incompounding
the Mid
debt instruments
Cap space?
Midcap allocation: Midcap allocation:
Min 65% Min 42%

16
What more?

Can there be a fund that

•? Can there be a fund
has an exclusive focus on
•?
which invests into larger
mid caps? pool of mid cap stocks?

17
Introducing….

18
Mid Cap Index – what is different?

Midcap Fund Midcap Hybrid Fund

Index: Index: Index:

NIFTY MIDCAP100 NIFTY MIDCAP100 & Crisil NIFTY MIDCAP150
Composite Bond Fund Index

Exposure to high
Strategy: Diversification Long term
Strategy: Strategy:
growth companies
Majority Mid Caps
Blend benefit
of mid caps & compounding
Only Mid Caps
growth companies
debt instruments

Midcap allocation: Midcap allocation: Midcap allocation:

Min 65% Min 42% 100% Midcap

19
20
India on a strong footing

Fastest GDP growth in April – June quarter of 2023

India 7.80%

China 6.30%

Indonesia 5.20%

Mexico 3.60%

USA 2.10%

France 0.90%

Euro Area 0.60%

UK 0.40%

Germany -0.20%

Source: IMF, Bloomberg 21

Historical returns: Mid Caps

Mid Caps give good returns in strong growth environments

NSE Midcap100 TR index GDP growth (RHS)

2,000 10%

1,800 8%

1,600 High Growth Phase

6%
Mid Cap CAGR: 29%
1,400
High Growth Phase 4%
High Growth Phase
1,200 Mid Cap CAGR: 60%
Mid Cap CAGR: 17% 2%
1,000
0%
800

-2%
600

-4%
400

200 -6%

0 -8%
Nov-06

Nov-11

Nov-16

Nov-21
Oct-04

Jan-06

Sep-07

Oct-09

Jan-11

Oct-14

Jan-16

Oct-19

Jan-21
May-04

Apr-07

May-09

Apr-12

May-14

Apr-17

May-19

Apr-22
Jun-06

Jun-11
Dec-03

Feb-08

Dec-08

Feb-13

Jun-16

Feb-18

Jun-21
Aug-05

Mar-10

Sep-12

Dec-13
Aug-10

Mar-15

Sep-17
Aug-15

Mar-20
Mar-05

Jul-08

Jul-13

Jul-18
Dec-18

Aug-20
22
Investment Universe for Midcaps

Top 100 companies

70% of the total market cap
Large • Moderate Growth
• High Institutional Holdings
Cap • Extensively Researched

101 to 250 companies

17% of the total market cap

Mid Cap • High growth Potential

• Under Owned
• Under Researched

251 and beyond

14% of the total market cap

Small Cap • High Risk, Higher Reward

• Under Owned
• Under Research
• Not an established business model

23
Mid Cap Opportunity

Emerging themes investable in India through Mid Caps

Several category leaders are

Mid Caps are a good way to
Mid Cap companies
play the India growth story

❖Significant part of Large Cap revenue

pool is linked to global macros
❖Sectors such as Metals, Oil & Gas, IT
are significantly connected to global
growth
❖Mid Caps are more connected to
sectors exposed to domestic growth
❖Investment universe offers a wide array
such as :
of structural opportunities
• Domestic consumption
• China + 1
• Manufacturing and infra push by Govt
• Domestic capex
• Household capex
24
Benefit from high compounding

20000
Index 3Y CAGR 5Y CAGR 10Y CAGR
18000 Nifty Midcap 150 TRI 34.7% 17.1% 20.5%
Nifty 50 TRI 24.5% 13.9% 14.0%
16000

14000

12000

10000

8000

6000 Index Drawdown

Nifty 50 TRI -57%
4000 Nifty Midcap 150 TRI -72%
Index Drawdown

2000 Nifty 50 TRI -37%

Nifty Midcap 150 TRI -38%
0
Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23

Nifty 50 TRI Nifty Midcap 150 TRI

25
Source: Bloomberg, Nuvama research ; CAGR data till 30th June 2023
Higher spread of stocks / sectors

Top 10 constituents Sectoral weightages (%)

Name of company Weight (%) Consumer discretionary 24.9
Shriram Finance Ltd. 2.28 Financial services 22.2
Max Healthcare Institute Ltd. 2.19 Industrials 12.9
Trent Ltd. 1.92 Healthcare 11.4
AU small finance bank Ltd. 1.79 Commodities 11.2

Indian Hotels Co. Ltd. 1.71 Information Technology 5.9

Tube Investment of India Ltd. 1.64 Energy 3.3

TVS Motor co. Ltd. 1.53 Power 2.6

Yes Bank Ltd. 1.41 Services 2.2

Federal Bank Ltd. 1.32 Telecommunication 1.4

Tata Elxsi Ltd. 1.31 Fast moving consumer goods 1.4

Diversified 0.5
Total 17.1

Source: NSE, Nuvama research 26

Leveraging India’s domestic consumption

• More diversified sector exposure than large-caps

• Greater exposure to domestic growth-oriented sectors
• Better way to play the consumption and investment cycle in India

40 37.6 Nifty midcap 150 Nifty 50

35
30
24.9
25 22.2
(%)

20
15 12.9 11.4 11.2 12.7 12.0
9.3 9.8
10 5.8 5.9
3.5 3.9 3.3 2.6 2.1
5 2.2 0.7 1.4 2.6 1.4 0.5 0.0
0

Energy

Power
Industrials

Commodities

Services
Consumer discretionary

Fast moving consumer goods

Diversified
Financial services

Healthcare

Telecommunication
Information Technology

27
Source: NSE, Nuvama research
Mid Cap: Fast growing asset class

1200

1000
977

1.7x
800
higher
(Rebased to 100)

600 569

400

200

0
Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23

Nifty 50 TRI Nifty midcap 150 TRI

Source: Bloomberg, Nuvama research

28
Calendar wise performance

Midcaps did better in 9 out of last 14 years

140

120 114

100
78
80
63
56
(%, YoY)

60
47 48
40 29 33 30
26 26
20 19 16
20 10 13 13
8 7 4 5 4 6 7
1
0
-1 -3
-20 -13
-24
-40 -31
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Nifty midcap 150 TRI Nifty 50 TRI

29
Index valuation multiple

Nifty Mid Cap 150 Index attractively valued currently

Nifty midcap 150 Index 1 yr fwd P/E Nifty midcap 150 Index 1 yr fwd P/B
90 4.5
80
4.0
70
60 3.5 3.4

50
3.0

(x)
(x)

40
27.9
30 2.5
20
2.0
10
0 1.5
Oct-17 Mar-19 Aug-20 Jan-22 Jun-23 Oct-17 Mar-19 Aug-20 Jan-22 Jun-23

30
Key takeaways

Exposure to high
Diversification Long-term
growth
benefit compounding
companies

31
New fund subscription timelines

Sun Mon Tue Wed Thu Fri Sat

1 2

3 4 5 6 7 8 9 Subscription Start Subscription Closure

(Login to begin) (Last day of logins)

10 11 12 13 14 15 16
September
TO September

11 25
2023 2023
17 18 19 20 21 22 23

24 25 26 27 28 29 30

 All E-apply cases with Mid Cap Index Fund logged in with money till 3 PM on 25th Sep along with requisite documents and
completing all necessary underwriting requirements will be issued on the same day with NAV of ₹ 10.

32
Available with ULIPs below

• Available in Signature online and offline versions.

• Also available with regular and single premium variants of all products except Protect N Gain

33
Taxability of funds in ULIPs

The gains from a ULIP is subject to Long Term Capital Gains (LTCG)
ONLY IF

• Sum assured is minimum 10  annualized premium

• Aggregate* premium invested in ULIPs per year exceeds ₹2.5 Lakhs in an FY

Tax of 10% will be applicable on gains above ₹ 1 lakh

10% of LTCG applies irrespective of whether the underlying fund is equity or debt

Switching between funds is TAX FREE

*Aggregate premiums: Sum of base premiums + renewal premiums payable towards all ULIPs from Feb 2021 34
Login screenshot

35
Riders in ULIP

The new premium paying rider will be effective 11th September 2023.

• The existing unit linked rider in Signature is discontinued

36
Logins open from 11th September!

Happy Selling!

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