1

Recap of Outlook 2021 – Turning Points ahead

WHAT WE SAID LAST YEAR?

Deflation to Reflation Change in Market Cycle

Emerging & Developed Countries are 2021 witnessed extreme market
witnessing high inflation movements due to changing macros

Normalization of Concentrated to Broad Less returns potential

Stimulus Measures Based Rally in Duration
Central Banks paused further rate cuts During CY2021, market rally was broad based RBI has paused further rate cuts &
& speeding up tapering program unlike 2020 is likely to hike rates

Source – www.CNBC.com, Edelweiss Research, RBI, JM Financial, Morgan Stanley. Data as of Dec 31, 2021. RBI – Reserve Bank of India. *Please click on following link for detailed outlook 2021document – Annual Outlook 2021
2
Outlook 2022 - Shifting Sands (A Year of Active Management)
Our previous yearly outlook mentioned how various factors like easy liquidity, deflation, etc. may witness
turning points which may lead to trend reversals going forward. We saw major turning points play out as
anticipated. In the coming year, we believe that with rising inflation, rate hikes & withdrawal of stimulus, no
clear roadmap on the Pandemic, many economies will be affected Globally. On the domestic front, barring
Valuations, economy appears to be on a strong footing. Sentiments in certain areas appear Euphoric. Global
monetary & fiscal policies especially that of US Fed may affect Domestic Equity markets.
The current environment is akin to shifting sands, where dynamism is at its peak. Hence, it
would be prudent to have an active management approach. We believe, schemes which have
the flexibility to invest across different asset classes, Marketcap and Themes may do well

3
 Global Indices Performance

Japan
UK Germany Russia 5%
14% 15% 14%
South
China Korea
Europe
22%
4% 5% • Most economies clocked in
positive returns for the year
due to reduction in COVID
cases, stimulus measures &
release of pent-up demand
France
28% Taiwan
US 22% • Hong Kong, China & Brazil
17% India
20%
were major laggards owing to
Indonesia regulatory changes and
10%
Switzerland Singapore political uncertainty
19% 9%
respectively
Brazil South Africa Hong Kong Australia
-12% 16.7% -15% 7.3%

Map not to scale. This map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; 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; Taiwan – Taiwan Stock Exchange Corporation; India – S&P BSE Sensex; Returns in % terms. Data Source: MFI & ACEMF; Returns are absolute returns for the index calculated between December 31, 2020 –
December 24, 2021. Past performance may or may not be sustained 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
4
 Shifting Sands - Moderating Global Growth
GDP Growth (YoY %)

15%

• Global growth which

5% was driven by ample
liquidity and pent-up
demand post COVID-19,
Average: 2% is now showing signs of
-5% moderation

• The shift in growth

-15% dynamics is due to
contracting liquidity
Mar-18

Mar-19

Mar-20

Mar-21
Sep-17

Sep-18

Sep-19

Sep-20

Sep-21
Jun-18

Jun-19
Dec-17

Dec-18

Dec-19

Jun-20

Dec-20

Jun-21
European Union United States Japan United Kingdom
Source: Morgan Stanley Research. Data as of Sep 30, 2021. GDP – Gross Domestic Product
5
 Shifting Sands - Deflation to Reflation
Most of the Emerging & Advanced Economies are witnessing the shift from Deflation to Reflation
over last one year. The shift can be attributed to abundant liquidity in the system released
by economies to tackle COVID led growth challenges

Inflation (YoY %) - Emerging Economies Inflation (YoY %) - Advanced Economies

10.0% 8.0%

6.0%
6.0%
4.0%
2.0%
2.0%
-2.0%
0.0%

-6.0% -2.0%
Nov-20

Nov-21
Sep-21
May-21

Oct-21
Jan-21

Apr-21
Dec-20

Jun-21

Nov-20

Nov-21
Jul-21
Aug-21

May-21
Feb-21
Mar-21

Sep-21
Jul-21

Oct-21
Jan-21

Apr-21
Dec-20

Jun-21

Aug-21
Feb-21
Mar-21
Brazil Russia India China South Africa Euro area Japan UK US

Source: JM Financial. Data as of Nov 30, 2021. CPI Inflation considered, UK – United Kingdom, US – United States
6
 Shifting Sands – Moderating global liquidity

With the steady pace of recovery of many economies, Global Central Banks & Govt. are slowly withdrawing
excess liquidity from markets. This shift has been a major game changer for markets

US, EA, Japan, UK Change in Central Banks Balance Sheets

Central Bank Balance Sheet (Trn. USD) (% GDP, 12M change)
30
18%
28
14%
26 Expected trajectory
24 10%

22 6%
20 2%
18 -2%
16

Nov-11

Nov-14

Nov-15

Nov-18

Nov-19

Nov-20
Nov-12

Nov-13

Nov-16

Nov-17

Nov-21
Dec-19

Dec-20

Dec-21

Dec-22

Dec-23
Jun-20

Jun-21

Jun-22

Jun-23

US EA Japan UK Total
Source: Morgan Stanley Research. Data as of Nov 30, 2021. EA – Euro Area, UK – United Kingdom, US – United States.
7
INDIAN EQUITY
MARKETS IN
2021

8
 Mid and Smallcaps – Back to back year of gains!

Small & Midcaps continued their onward march by outperforming broader market

S&P BSE SENSEX S&P BSE MIDCAP S&P BSE SMALLCAP

S&P BSE Sensex Returns S&P BSE Midcap Returns S&P BSE Smallcap Returns
25% 40% 36% 57%
60%
20% 50%
20% 30%
16% 40% 32%
14% 20%
15% 20% 30%
20%
10% 10%
10% -7%
-3%
0% 0%
5%
-10%
0% -10% -20%
2019 2020 2021 2019 2020 2021 2019 2020 2021

Source: BSE India; Time period considered: 31-Dec-20 to 24-Dec-21 Past performance may or may not sustain in future
9
 Shifting Sands – Challenging Domestic ‘V’aluations
The start point for Indian Equity Markets i.e. Valuations have shifted significantly from lows to highs

Nifty 50 P/E Nifty P/B Ratio Marketcap to GDP (%)

45 120
5.0

100
35 4.0

80
3.0
25
60
2.0

Dec-12
Dec-13

Dec-17

Dec-21
Dec-11

Dec-14
Dec-15
Dec-16

Dec-18
Dec-19
Dec-20
15 40
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21

Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Nifty 50 PE Average Nifty 50 P/B ratio Average
-1 SD +/- 1SD Market Cap to GDP (%) Long Term Average
-1 SD +/- 1SD

Source: Edelweiss Research, NSE. Data as of Dec 18, 2021. P/E – Price to Earnings Ratio, P/B – Price to Book ratio, SD – Std. Deviation. Past performance may or may not sustain in future
10
 Shifting Sands – Business ‘C’ycle at nascent stage
Corporate Balance Sheets appear to be healthy given rise in profits and decline in Debt over last 2 years

Corporate Profit to GDP Corporate Debt/Equity

35% 80%
5%
25%
4% 70%
3.3% 15%

3% 5%
60%
2% -5%

1% -15% 50%

FY11
FY12
FY13

FY15
FY16

FY19
FY20
FY14

FY17
FY18

FY21
F2011

F2013

F2015

F2017

F2019

F2021

Debt Change (YoY) Net Debt / Equity

Source: Morgan Stanley. Debt to Equity data is considered for S&P BSE 500 excluding financials. Past performance may or may n ot sustain in future. GDP – Gross Domestic Product
11
 Shifting Sands – Personal Balance Sheet
There has been a 5x jump in the middle income bracket (people crossing $2000 per capita income mark)
in last 6 years. The middle & high income strata are in good shape despite COVID led disruptions
which can help in lifting up the lower strata

>$5000
25m 33m 41m
people people people

$2000-$5000 5x jump 1.6x jump

102m people
516m people 825m people

<$2000 1.1bn people

766m people 536m people

2015 2021 2025E

Source – NSSO, Income Tax data, Census, Spark Capital Research Note: Spark Capital Projections. E - Estimated
12
 Supportive Govt. Policies

Production Linked Incentive Boost domestic manufacturing with an aim to bring import substitution &
increase Global Market Share

The Insolvency & Bankruptcy Code 2016 enabled insolvency resolution in

Insolvency & Bankruptcy Code a time bound manner & aimed at reducing NPAs in the banking sector

This step provided Indian Banks with the advantage of capital adequacy and
Consolidation of PSU Banks good size that most foreign banks have

This tax, introduced in 2016, simplified tax system by subsuming all indirect
Goods & Services Tax taxes which is easy to administer

Creation of Land banks to make land easily identifiable for industrial projects
Land Reforms coupled with provision of details about logistics

Make in India & Skill India to foster innovation & to cater to skill development
Make in India in India

PSU – Public Sector Undertaking, NPA – Non Performing Asssets

13
 ‘T‘riggers/Risk
We may re-visit our approach & recommendations once these factors come into action

US FED RATE HIKE US 10Y TREASURY COVID

ROADMAP YIELDS
Impact & Severity
Quantum of taper & US Treasury
of new COVID
pace of rate hikes by Yields reaching
variants (currently
US Fed 2%
Omicron)

Source: US Fed – US Federal Reserve, COVID – Coronavirus Disease

14
 Euphoric ‘S’entiments
Sentiments appear Euphoric in certain market segments

Retail investors participation in Direct Equity Increasing IPO Participation Rate

Rise in number of Demat Accounts IPO Participation Rate

6 8

No. of times over subscribed

7.7 100 30

Total Accounts (Crs)

5

Total No. of IPOs

5.5 6
CDSL & NSDL (Crs)

4 75
4.1 20
3 3.2 3.6 4
50
2
2 10
1 25

-1 0
9MFY22
FY18

FY19

FY20

FY21

0 0
2019 2020 2021

CDSL NSDL Total Total no. of IPOs Average of Over Subscription Times

Source: Internal Research, IPO – Initial Public Offering

15
Summary & Outlook

2021 was a year of unprecedented Equity markets may do well over long term
stimulus measures but we remain cautious over medium term

The current scenario reminisces one These factors warrant the need for Asset
of shifting sands wherein markets Allocation & Active Investment
may be volatile due to dynamically Management
changing macros

On the domestic front, the starting We recommend schemes which have the
point i.e. Valuations currently seem flexibility to invest across different Asset
to be high Classes, Marketcap & Themes

16
Fixed Income Outlook
Shifting Sands –
A year of active management
17
Case for Active Management

RBI Policy Measures

Macros at a Divergence
Shifting
Sands

High Valuations on
shorter end

18
 RBI Policy Measures and Debt Cycle

POST 2013: DEBT CYCLE EXPECTED DEBT CYCLE

Inflation Band : +/- 4% Inflation Band : +/- 4%

Interest
rates
Interest rates
2017 2018 2019 2020 2021
2022E

SHORTER DEBT CYCLE: LONGER DEBT CYCLE:

Mainly due to inflation targeting, which resulted in short-term RBI giving precedence to growth at the cost of inflation,
volatility but long stable cycle may result in longer cycle with higher volatility at the turns
RBI – Reserve Bank of India, E - estimated
19
 RBI Policy Measures – Expected Roadmap
We expect RBI to normalize stimulus measures & take below steps to strike a balance between Growth & Inflation

RBI STATUS

01 CEASE INJECTING LIQUIDITY INITIATED

02 LIQUIDITY ABSORPOTION INITIATED

03 NARROWING LAF CORRIDOR PENDING

04 CHANGE IN STANCE PENDING

05 REPO RATE HIKE PENDING

LAF – Liquidity Adjustment Facility

20
 Shifting Sands – Macros at a divergence
Global stimulus measures were unprecedented compared to domestic stimulus,
which resulted in a relatively matured Business Cycle phase than India

Global Stimulus vs Domestic Stimulus Global Business Cycle vs Domestic Business Cycle

Fiscal Deficit as % of GDP Unemployment Rate (%)

0 25
-4 20
-8 15
-12 10
-16 5
-20 0
Sep-13

Sep-16

Sep-19
Dec-12

Dec-15

Dec-18

Dec-21
Jun-14

Jun-17

Jun-20
Mar-12

Mar-15

Mar-18

Mar-21

Mar-17

Nov-21
Jul-19
Oct-17

Apr-21
Sep-20
Jan-16

May-18

Dec-18

Feb-20
Aug-16
India US India Unemployment rate US Unemployment rate

Source – JP Morgan Research. Data as of Nov 30, 2021, US – United States, GDP – Gross Domestic Product
21
 Shifting Sands – Valuations

7
Risk reward KEY TAKEAWAY:
benefit
6 moderate to
low High valuations at the
short-end of the yield curve,
High term premium
5 but follow tactical which still trades below or
Low carry
approach due to close to repo-rate. Belly of
rising interest-rate the curve, offers low
cycle risk-reward benefit.
4 Long-end term premium is
reasonable but need to be
managed actively based
3 on RBI measures
1M 3M 6M 1 Yr 2Yrs 3 Yrs 5 Yrs 10 Yrs
Gsec Yield Curve (%) Corporate Bond Yield Curve (%)

Data as on Dec 28, 2021, CRISIL Research

22
To Sum Up – Shifting Sands in Fixed Income Space

SCENARIO IN LAST COUPLE OF YEARS APPROACH

Easy Monetary Policy + Interest Rate Cuts Long Duration Funds and Passive Long
= Duration Funds
led to higher returns for Duration Funds

SCENARIO GOING FORWARD APPROACH

Normalization of liquidity conditions + rate • Be nimble, recommend active management
hikes + change in policy stance approach
= • Invest in Spread Assets
May result in volatility • Instruments like FRB (Floating rate bonds)
which may benefit from rising interest rates

23
 Triggers/Risk

Quick US Fed Roadmap US Fed Global Bond Impact & Severity of

Growth for withdrawal of 10Y Rates Index inclusion new COVID variants
stimulus (currently OMICRON)
rebound

May result in faster Faster withdrawal – Higher rates may result May help in absorption May impact pace of
withdrawal of stimulus negative for markets in outflow of bond supply growth recovery

24
 2022 – Avoid Investing Mistakes

Not following Asset Allocation

01
Investing in IPOs without
understanding the business Reacting to temporary under-
06 02
performance due to active management

Investing based on past

05 03 Not giving due respect to valuations
returns

04

Not opting for debt as a capital

preservation tool
25
 Investment Approach &
Scheme Recommendations for 2022
26
 Investment Approach For 2022 (Equity) – ABCDEF

1
A 1 ASSET ALLOCATION (Correct allocation between asset classes)

2
B 2 BOOSTER STP (Staggered Investment based on Valuations)

3
C 3 CONSERVATIVE (An approach when markets at all time high)

4
D 4
DEBT (Aim for Wealth Preservation)

5
E 5 EQUITY SAVINGS/ARBITRAGE (Parking of Funds)

6
F 6 FUND OF FUNDS (may provide flexibility to navigate markets)

ICICI Prudential Booster Systematic Transfer Plan (“Booster STP”) is a facility wherein unit holder(s ) can opt to transfer variable amount(s) from designated open ended Scheme(s) of the Fund [hereinafter referred to as “Source Scheme”] to the designated
open-ended Scheme(s) of the Fund [hereinafter referred to as “Target Scheme”] at defined intervals. The Unitholder would be required to provide a Base Installment Amount that is intended to be transferred to the Target Scheme. The variable amount(s )
or actual amount(s ) of transfer to the Target Scheme will be linked to the Equity Valuation Index (hereinafter referred to as EVI). The EVI is derived by assigning equal weights to Price to Earnings (PE), Price to book (PB), (G-Sec x PE) and Market Cap to
Gross Domestic Product (GDP) or such other factors as may be determined by the AMC from time to time. For list of source and target schemes investors are requested to refer to application form.

The asset allocation and investment strategy will be as per SchemeInformation Document. 27
 Our Recommendations based on Investment Approach 2022 (Equity)

Asset Top Lumpsum

Top SIP schemes Fund of Funds
Allocation Schemes

• ICICI Prudential Value Discovery • ICICI Prudential Asset Allocator

• ICICI Prudential Balanced • ICICI Prudential Flexicap Fund Fund Fund (FOF)
Advantage Fund
• ICICI Prudential Business • ICICI Prudential India Opportunities • ICICI Prudential Thematic
• ICICI Prudential Multi-Asset Cycle Fund Fund Advantage Fund (FOF)
Fund
• ICICI Prudential MNC Fund • ICICI Prudential Bluechip Fund • ICICI Prudential Passive Multi-
• ICICI Prudential Equity & Asset Fund of Funds
• ICICI Prudential Value • ICICI Prudential Focused Equity Fund
Debt Fund
Discovery Fund • ICICI Prudential Global
• ICICI Prudential Midcap Fund & ICICI
Prudential Smallcap Fund Advantage Fund (FOF)

Recommend Booster STP

The asset allocation and investment strategy will be as per Scheme Information Document. 28
Strategies to navigate Fixed Income Markets

Floating Rate Active Spread

Instruments Management Assets

29
 Active Duration Management in ICICI Prudential’s Fixed Income Schemes

Major Phases & Pre-pandemic COVID (Wave 1): Economy Opening COVID (Wave 2): RBI normalizing
phase increased duration to Up: increased duration stimulus measures :
Duration benefit from RBI lowered duration as RBI expected to moderated duration
Movement easing monetary give precedence to
conditions growth

Feb-2020 Aug-2020 Feb-2021 July-2021 Nov-2021

ICICI Prudential All Seasons Bond Fund 4.61 5.72 2.44 4.12 3.19
ICICI Prudential Banking & PSU Debt Fund 2.43 3.37 1.79 3.86 3.74
ICICI Prudential Bond Fund 3.82 4.89 3.96 5.38 4.41
ICICI Prudential Corporate Bond Fund 1.84 2.88 1.76 2.31 2.84
ICICI Prudential Credit Risk Fund 1.76 2.24 1.38 1.92 1.78
ICICI Prudential Floating Interest Fund 0.96 1.37 0.54 0.99 1.53
ICICI Prudential Gilt Fund 6.95 8.05 5.53 5.91 7.33
ICICI Prudential Liquid Fund 0.09 0.11 0.10 0.09 0.06
ICICI Prudential Long Term Bond Fund 7.43 7.93 7.14 8.72 8.40
ICICI Prudential Medium Term Bond Fund 2.89 3.55 2.14 2.97 3.10
ICICI Prudential Money Market Fund 0.32 0.42 0.24 0.28 0.14
ICICI Prudential Savings Fund 0.80 0.92 0.55 0.82 0.87
ICICI Prudential Short Term Fund 2.31 2.85 1.61 2.40 2.01
ICICI Prudential Ultra Short Term Fund 0.42 0.30 0.38 0.33 0.23
Source: CRISIL Research, Data as on Nov 30, 2021. Past performance may or may not sustain in future
30
 Scheme Recommendations - Fixed Income/Arbitrage/Conservative Hybrid

Approach Scheme Name Call to Action Rationale

Invest with 3 Months & Spreads at reasonable
Arbitrage ICICI Prudential Equity Arbitrage Fund levels
above horizon
Invest with 6 Months & Potential for upside and
Measured Equity ICICI Prudential Equity Savings Fund limiting downside
above horizon
ICICI Prudential Savings Fund
ICICI Prudential Ultra Short Term Fund Invest for parking surplus Accrual + Moderate
Short Duration Volatility
ICICI Prudential Floating Interest Fund funds

Core Portfolio with >1 Yr

ICICI Prudential Credit Risk Fund
investment horizon
Accrual Schemes ICICI Prudential Medium Term Bond Fund Better Accrual

Long Term Approach with Active Duration and

Dynamic Duration ICICI Prudential All Seasons Bond Fund
>3 Yrs investment horizon Better Accrual

31
 Our guiding light for Equity Market Valuations

170

150 Book Partial Profits

127.1
130
Incremental Money to Debt Our Equity
Valuation Index
110 Neutral highlights that
valuations are
90 not cheap &
Invest in Equities
recommends
70 Asset Allocation
Aggressively Invest in Equities

50
Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

Dec-18

Dec-19

Dec-20

Dec-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 Dec 31, 2021
32
 Our guiding light for Duration Risk Management

10
9 Very Aggressive
Highly
Very Aggressive Aggressive
8
7 Aggressive Aggressive
Aggressive
6
Our Debt Valuation
Index suggests
5 Moderate caution on high
4 duration as the
3 Cautious interest rates are
Cautious Cautious 2.04 expected to
2
remain volatile
1 Very
VeryCautious
Very Cautious Cautious
0
Sep-19

Sep-20

Sep-21
Dec-18

Dec-19

Dec-20

Dec-21
Jun-19

Jun-20

Jun-21
Mar-19

Mar-20

Mar-21
Data as on Dec 31, 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.

33
Riskometers & Disclaimers

34
 Our Equity Schemes

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
An open ended equity scheme investing in maximum 30 stocks across market-capitalization i.e.
ICICI Prudential Focused Equity Fund
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
35
 Our Hybrid Schemes / Fund of Funds Scheme

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.
An open ended hybrid scheme investing predominantly in equity and equity related
ICICI Prudential Equity & Debt Fund
instruments

ICICI Prudential Multi-Asset Fund An open ended scheme investing in multi assets

Scheme Name Type of Scheme

An open ended fund of funds scheme investing in equity oriented
ICICI Prudential Asset Allocator Fund (FOF)*
schemes, debt oriented schemes and gold ETFs/schemes.
ICICI Prudential Passive Multi-Asset Fund Of An open ended fund of funds scheme investing in equity, debt, gold &
Funds* global index funds/exchange traded funds
*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.

36
 Our Fixed Income Schemes
Scheme Name 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. A
ICICI Prudential Ultra Short Term Fund moderate interest rate risk and moderate credit risk.
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. A relatively
ICICI Prudential Short Term Fund high interest rate risk and moderate credit risk.

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. A relatively high interest rate risk and moderate credit risk.

ICICI Prudential Credit Risk Fund An open ended debt scheme predominantly investing in AA and below rated corporate bonds. A relatively high interest rate risk and relatively high credit risk.

An open ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using
ICICI Prudential Floating Interest Fund swaps/derivatives). A relatively high interest rate risk and moderate credit risk.

ICICI Prudential All Seasons Bond Fund An open ended dynamic debt scheme investing across duration. A relatively high interest rate risk and moderate credit risk.
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. A
ICICI Prudential Savings Fund relatively high interest rate risk and moderate credit risk.
An open ended debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal
ICICI Prudential Banking & PSU Debt Fund Bonds. A relatively high interest rate risk and moderate credit risk.

ICICI Prudential Corporate Bond Fund An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. A relatively high interest rate risk and moderate credit risk.

ICICI Prudential Money Market Fund An open ended debt scheme investing in money market instruments. A relatively low interest rate risk and moderate credit risk.
ICICI Prudential Liquid Fund An open ended liquid scheme. A relatively low interest rate risk and moderate credit risk.

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
ICICI Prudential Bond Fund
duration of the portfolio is 1 Year to 7 years under anticipated adverse situation. A relatively high interest rate risk and moderate credit risk.

ICICI Prudential Gilt Fund An open ended debt scheme investing in government securities across maturity. A relatively high interest rate risk and relatively low credit risk.
ICICI Prudential Overnight Fund An open ended debt scheme investing in overnight securities. A relatively low interest rate risk and relatively low credit risk.
ICICI Prudential Long Term Bond Fund An open ended debt scheme with Macaulay duration greater than 7 years. A relatively high interest rate risk and relatively low credit risk.

Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is det ermined by dividing the present value of the cash flow by the price 37
 Riskometers

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

38
 Riskometers

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

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

39
 Riskometers

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 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 andliquidity
*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

40
 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 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 for them.

ICICI Prudential Equity Savings Fund is suitable for investors who are seeking*:

 Long term wealth creation Investors understand that

 An open ended scheme that seeks to generate regular income through investments in fixed income securities, arbitrage and their principal will be at
other derivative strategies and aim for long term capital appreciation by investing in equity and equity related instruments. Low to Moderate Risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable forthem

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 41
 Riskometers

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
Investors understand that
 An open ended low duration debt scheme that aims to maximize income by investing in debt and money market instruments
their principal will be at
while maintaining optimum balance of yield, safety and liquidity Low to Moderate Risk
*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 who are 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 det ermined by dividing the present value of the cash flow by the price

42
 Riskometers
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.

ICICI Prudential Asset Allocator Fund (FoF) is suitable for investors who are seeking*:

• Long Term wealth creation

• An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETF/schemes.

*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 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 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.
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
43
 Riskometers
ICICI Prudential Liquid Fund is suitable for investors who are seeking*:

 Short term savings solution

Investors understand that
 A liquid fund that aims to provide reasonable returns commensurate with low risk and providing a high level of liquidity their principal will be at
Low to Moderate Risk
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

ICICI Prudential Overnight Fund 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.
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

44
 Riskometers

ICICI Prudential Business Cycle Fund 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 for them.

ICICI Prudential Equity Arbitrage Fund 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 for them.

ICICI Prudential Infrastructure Fund 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 for them.

ICICI Prudential Dividend Yield Equity Fund is 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

45
 Riskometers

ICICI Prudential Flexicap Fund 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.

ICICI Prudential Passive Multi-Asset Fund of Funds is suitable for investors who are seeking*:

•Long Term wealth creation

•An open ended fund of funds scheme investing in equity, debt, gold and global index funds/exchange traded funds

*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 Nov 30, 2021 Please refer to https://www.icicipruamc.com/news-and-updates/all-news
for more details.
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 Benchmark Riskometers
Scheme Name Scheme Benchmark Name
ICICI Prudential Bluechip Fund Nifty 100 TRI
ICICI Prudential Long Term Equity Fund (Tax
NIFTY 500 TRI
Saving)
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

ICICI Prudential Passive Multi-Asset Fund of CRISIL Hybrid 50+50- Moderate Index (80% weightage) + S&P Global 1200
Funds Index (15% weightage) + Domestic Gold Price (5% weightage)

47
 Benchmark Riskometers

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

Nifty 200 TRI (65%) + Nifty Composite Debt Index

ICICI Prudential Multi-Asset Fund
(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
48
 Benchmark Riskometers

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 Money Market Fund CRISIL Money Market Index

ICICI Prudential Liquid Fund Crisil Liquid Fund Index

ICICI Prudential Savings Fund

Nifty Low Duration Debt Index

ICICI Prudential All Seasons Bond Fund

Nifty Composite Debt Index
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 Benchmark Riskometers

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 Medium Term Bond Fund
CRISIL Medium Term Debt 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 Bond Fund
Nifty Medium to Long Duration Debt Index
ICICI Prudential Ultra Short Term Fund Nifty Ultra Short Duration Debt Index

ICICI Prudential Floating Interest Fund CRISIL Low Duration Debt Index

50
 Potential Risk Class Matrix
Sr No Scheme Name Position in the Matrix
1 ICICI Prudential Medium Term Bond Fund
2 ICICI Prudential All Seasons Bond Fund
3 ICICI Prudential Savings Fund
4 ICICI Prudential Floating Interest Fund
5 ICICI Prudential Corporate Bond Fund
6 ICICI Prudential Banking & PSU Debt Fund
7 ICICI Prudential Short Term Fund
8 ICICI Prudential Bond Fund

9 ICICI Prudential Long Term Bond Fund

10 ICICI Prudential Gilt Fund

11 ICICI Prudential Ultra Short Term Fund

51
 Potential Risk Class Matrix
Sr No Scheme Name Position in the Matrix

12 ICICI Prudential Overnight Fund

13 ICICI Prudential Liquid Fund

14 ICICI Prudential Money Market Fund

15 ICICI Prudential Credit Risk Fund

Disclaimer:
As per SEBI Circular dated , June 07, 2021; the potential risk class (PRC) matrix based on interest rate risk and credit risk , is as below:

52
 Mutual Fund Disclaimer

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.

ICICI Prudential Booster Systematic Transfer Plan (“Booster STP”) is a facility wherein unit holder(s) can opt to transfer variable amount(s) from designated open ended Scheme(s) of the
Fund [hereinafter referred to as “Source Scheme”] to the designated open-ended Scheme(s) of the Fund [hereinafter referred to as “Target Scheme”] at defined intervals. The Unitholder
would be required to provide a Base Installment Amount that is intended to be transferred to the Target Scheme. The variable amount(s) or actual amount(s) of transfer to the Target
Scheme will be linked to the Equity Valuation Index (hereinafter referred to as EVI). The EVI is derived by assigning equal weights to Price to Earnings (PE), Price to book (PB), (G-Sec x
PE) and Market Cap to Gross Domestic Product (GDP) or such other factors as may be determined by the AMC from time to time. For list of source and target schemes investors are
requested to refer to application form.

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 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 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.

53