ICICI Prudential Equity & Debt Fund

(An open ended hybrid scheme investing predominantly in equity and equity related instruments)

August-23
Fund Snapshot
About ICICI Prudential Equity & Debt Fund
Inception Date • ICICI Prudential Equity & Debt Fund is an Aggressive Hybrid scheme investing predominantly in equity
and equity related instruments. The Scheme aims to generate long-term capital appreciation and
03-Nov-99 accrual income from a portfolio that is invested in equity and debt.
• The Scheme’s equity exposure would range between 65%-80% and debt exposure would be
Fund Manager maintained between 20%-35%
For Equity Portfolio:
Sankaran Naren Why ICICI Prudential Equity & Debt Fund?
• The Scheme is suitable for investors who seek diversification across debt and equity with an aim to
(Managing this fund since Dec, 2015 & benefit from accrual income as well as long-term capital growth.
Overall 34 years of experience)
• Investors who wish to participate in the growth story of the equity markets with a portion of their
Mittul Kalawadia portfolio invested in fixed income securities could consider investing in this scheme for a period of 3
years and above.
(Managing this fund since Dec, 2020 &
Overall 13 years of experience) Portfolio Commentary
For Debt Portfolio: Equity:
Manish Banthia • The scheme shall invest across market capitalization. While the large cap stocks represent
established enterprises selected from the Top 100 stocks by market capitalization, the mid- and
(Managing this fund since Sep, 2013 & small-caps represent business entities with higher growth potential over the long-term. The
allocation will depend on the net equity level of the scheme as per the in-house Price to book model.
Overall 20 years of experience) As on July 31, 2023 the exposure to large, mid and small cap stocks is 91%, 4% and 5% respectively.
Nikhil Kabra • The scheme shall use a blend of top-down and bottom-up approach for stock selection.
• The scheme shall remain sector agnostic in its investment approach. For stock picking, the Fund
(Managing this fund since Dec, 2020 & manager shall identify those stocks with long-term growth prospects but currently trading at
Overall 10 years of experience) modest to relative valuations. (# Please refer to the note on last page)
Ms. Sri Sharma (for derivatives transactions) • The scheme may also take derivatives exposure for portfolio hedging or any other permitted
strategy with a view to minimize downside risk. As on July 31, 2023, the *net equity exposure of the
(Managing this fund since Apr, 2021 & scheme stands at 70%.
Overall 7 years of experience) • *Note : The net equity exposure includes Foreign equity, Units of equity mutual fund and Futures and
Options ( Notional Exposure )
Ms. Sharmilla D'mello Debt:
(Managing overseas investment) • The Scheme intends to tactically allocate to longer duration fixed income securities with credit rating
AA and above, which offer reasonable accrual. The scheme shall take exposure in well-researched
corporate securities to earn reasonable carry over wealth.
• The Scheme also invests in fixed income securities issued by the government, quasi-government
Benchmark agencies and corporate and multilateral agencies.
CRISIL Hybrid 35+65 - Aggressive Index
Units of REIT & InvITs and Preference Shares:
The Scheme may invest upto 10% of total assets in units of REIT & InvITs and Preference Shares.
Exposure to REIT & InvITs and Preference Shares would be added as and when a good opportunity
Options arises. The debt exposure as on July 31, 2023 stands at 25%. Within the debt holdings, the scheme has
Growth and IDCW (IDCW Payout and a higher exposure towards good credit quality instruments to benefit from higher carry.
IDCW Reinvestment available)

Investment Options Available Equity Market Outlook

Lumpsum, SIP, SWP and STP Global Update: The rally in equity markets sustained momentum in July 2023. In the US, the
economy continued to report a stronger growth print along with softer inflation growth,
dismissing fears of a ‘hard landing (Source: S&P; Nasdaq)
Month End AUM(Crs.) (As on July 31, 2023)
China’s factory activity contracted for the fourth consecutive month, struggling to revive
₹24,990.09 growth in the wake of soft global demand. (Source: Kotak Research)

Investment Amount India Update: Foreign portfolio investors (FPIs) flows into domestic equities sustained
momentum at Rs.46,618 crore in July 2023, versus Rs.47,148 crore in June 2023. (Source:
Minimum Application Amount NSDL)
₹5,000 (plus in multiples of ₹1) The market barometer S&P BSE Sensex index climbed 2.8% whereas the Nifty 50 rose 2.9%.
Minimum Additional Investment Sector-wise, the BSE PSU (+9.3%), BSE Power (+9.2%) and BSE Realty (+9.0%) were gainers.
BSE Consumer Durables (-0.3%), BSE Infotech (+1.3%) and BSE FMCG (+1.6%) were
₹1,000 (plus in multiples of ₹1) laggards. (Source: BSE and NSE)
Minimum Redemption Amount
Our view going forward:
Any Amount
• Post March-2023, equity valuations have moved higher due to renewed interest from FPIs.
Exit Load India’s strong macro-economic situation has led to positive overall sentiments.
Upto 30% of units within 1 Year from the date
• We are in a neutral situation where equities cannot be avoided due to strong macros, nor it
of allotment - Nil is recommended to be overweight on equities, due to valuations.
More than 30% of units within 1 Year from the • Hence, we prefer schemes with flexibility to move between asset classes, like the dynamic
date of allotment - 1% of applicable Net Asset asset allocation fund, multi-asset fund, or diversified equity schemes having flexibility to
Value (NAV) move between market-cap and sector/themes.
After 1 Year from the date of allotment - Nil • India’s long-term structural growth story and comparably favourable macros draw comfort
for investors with a longer time horizon.
Style Box
•The Union Budget’s focus on higher Capital Expenditure by the Centre & States; push for
consumption through lower taxes and goal of fiscal consolidation, healthy tax collections,
strong govt. reforms and India viewed as one of the favoured destination for China +1 theme
Equity Debt together underpin India’s growth
Style
Credit Quality
• Global cues such as US and UK central bank actions, geopolitical risks and foreign capital
Value Blend Growth flows may continue to influence equity markets.
Size High Medium Low Duration
Low
• We are positive on staggered or SIP mode of investment for capturing the long-term
Large
growth opportunity.
Short

Mid Medium
U.S. – United States of America; Bps – basis points; SIP – Systematic Investment Plan, FOF: Fund of Funds, UK: United Kingdom,
Medium to
Small Long China + 1 is the business strategy to avoid investing only in China and diversify business into other countries
Long
Diversified
The fund manager may adopt various styles basis the market trends
 ICICI Prudential Equity & Debt Fund
(An open ended hybrid scheme investing predominantly in equity and equity related instruments)

Portfolio Update (Data as July 31, 2023)

Historical Equity Asset Allocation over past 5 Years

S&P BSE Sensex TRI ICICI Prudential Equity & Debt Fund
120,000 110.00

Equity Asset Allocation (%)

Sensex levels

90,000 90.00

60,000 70.00

30,000 50.00
Jul-18 Mar-20 Nov-21 Jul-23

Source: S&P BSE Sensex. Note : The net equity exposure includes Foreign equity and Units of equity mutual fund
Top 5 Under/Overweight Sectors in comparison to
[1]
Top 10 Sectors - Equity CRISIL Hybrid 35+65 - Aggressive Index
Sector Jul-23 Jun-23 May-23 Apr-23 Mar-23 Overweight Sectors Underweight Sectors
Banks 14.7% 14.1% 14.6% 14.5% 15.3%
Power 6.9% Software -1.1%
Power 8.9% 8.0% 7.7% 7.8% 8.3%
Automobiles 8.0% 8.1% 8.5% 9.0% 9.1%
Telecom 4.8% Retailing -1.1%
Telecom - Services 6.3% 6.5% 6.9% 6.8% 6.6%
It - Software 5.8% 6.1% 6.7% 6.6% 7.4%
Auto 4.3% Cement -1.4%
Oil 4.9% 4.8% 4.9% 5.1% 5.5%
Petroleum Products 4.2% 4.3% 4.5% 4.5% 4.6% Oil, Gas &
Banks &
Pharmaceuticals & Petroleum 1.8% -4.1%
3.6% 3.6% 3.5% 3.5% 3.5% Finance
Biotechnology Products
Construction 2.9% 2.8% 2.7% 1.9% 2.1% Hotels & Consumer
0.8% -6.2%
Insurance 2.3% 2.4% 2.8% 2.7% 2.9% Leisure Non Durables
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Including Foreign Equities
document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. The
asset allocation and investment strategy will be as per Scheme Information Document
Green colour represents best value and red colour represents worst value
Top 10 Porfolio Holdings (% of net assets) - Equity
[2] Stock Entry/Exit (Top 3)
Stock Entry % of Net Assets
NTPC Ltd. 8.75%
ITC Ltd. 0.8%
ICICI Bank Ltd. 7.28%
Jio Financial Services Ltd. 0.3%
Tata Steel Ltd. 0.1%
Bharti Airtel Ltd. 6.26% Stock Exit % of Net Assets*
Oil & Natural Gas Corporation Ltd. 4.87% Nil

Tata Motors Ltd- DVR 4.48%

*As on 30th June 2023

Reliance Industries Ltd. 4.19%
Portfolio Statistics
Infosys Ltd. 3.80% ICICI Prudential Equity & Debt Fund Values
P/B 3.84
HDFC Bank Ltd. 3.11%
P/E 23.93
Sun Pharmaceuticals Industries Ltd. 3.11% Dividend Yield 1.62
Top 10 % Holdings 48.9%
Maruti Suzuki India Ltd. 3.01%
Top 10 Sectors 61.3%
No. of Stocks 64
The Top 10 Holdings and Top 10 Sectors are after adjusting for derivative exposures. Debt Holdings, Units Past performance may or may not be sustained in the future
of Mutual Fund schemes, cash, cash equivalents are not considered. The top 10 holdings have been
calculated excluding foreign equity (if any). Please refer to the factsheet for more details

Market Cap Rating Profile

Jul-23 Jun-23 May-23 Apr-23 Mar-23 Feb-23 A & below & Unrated
2.8% 3.5%
Large Cap 91.0% 91.0% 89.2% 90.0% 90.0% 89.6% 1.2%
AA & Equivalent

13.9%
Mid Cap 4.0% 4.0% 6.2% 6.0% 7.0% 6.9% AAA/A1+ & Equivalent

5.9% Sovereign
Small Cap 5.0% 5.0% 4.6% 4.0% 3.0% 3.6%
TREPS, Term Deposits &
Market cap classification for July 2023 is as per AMFI classification, for past periods, classification is as Net Current Assets
per MFI Explorer. Past performance may or may not be sustained in the future MFI Explorer is a tool 72.7%
provided by ICRA Analytics Ltd. For their standard disclaimer please visit Gross Equity
https://icraanalytics.com/home/Disclaimer
 ICICI Prudential Equity & Debt Fund
(An open ended hybrid scheme investing predominantly in equity and equity related instruments)

Product Label
This Scheme is suitable for investors who are seeking* Scheme Riskometer

• 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 advisor 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 July 31, 2023. Please refer to
https://www.icicipruamc.com/news-and-updates/all-news for more details

*IDCW – Income Distribution cum Capital Withdrawal Option. Payment of IDCW is subject to availability of distributable surplus and Trustee approval. Pursuant to
payment of IDCW, the NAV of the scheme falls to the extent of IDCW payout. When units are sold and sale price (NAV) is higher than face value of the unit, a portion of
sale price that represents realized gains is credited to an Equalization Reserve Account and which can be used to pay IDCW. IDCW can be distributed out of investors
capital (Equalization Reserve), which is part of sale price that represents realized gains. In case the unit holder has opted for IDCW payout option, the minimum amount for
IDCW payout shall be 100 (net of dividend distribution tax and other statutory levy, if any), else the IDCW would be mandatorily reinvested.

IDCW Payout -Payout of Income Distribution cum capital withdrawal option;IDCW Reinvestment -Reinvestment of Income Distribution cum capital withdrawal option

#The sector(s)/stock(s) mentioned in this communication do not constitute recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
position in these sector(s)/stock(s)

[1]
Disclaimer: "The top 10 sectors have been calculated net of derivatives (Incl. notional exposure) if any. Please refer to the factsheet for more details"
[2]
Disclaimer: "The top 10 holdings have been calculated net of derivatives (Incl. notional exposure) if any. Please refer to the factsheet for more details"

Disclaimer:
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed in-house.
Some of the material(s) 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. The recipient alone shall be fully responsible/are liable for any decision taken on this
material.