4090 IPru BAF Detailed Presentation November 2017

Ab market ke utar-chadhav
ka darr kaisa?
ICICI Prudential
Balanced Advantage Fund
Wisdom Of Buying Low & Selling High
Report Date: 02-November-2017
The information contained herein is solely for private circulation for reading/understanding of registered advisors/distributors and should not be circulated to investors/prospective investors.
Equity remained Volatile in the past
S&P BSE Sensex Calendar Year Return
101% 96% (37 Years)
72% 76%
64%
50% 51% 47%
41% 46%
29% 34% 28% 30%
28% 25%
18% 13% 17%
12% 12%
4% 7% 8% 4% 4% 8%
2%
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
-1% -5%
-18% -21% -17% -18%
-26% -25%
-52%
Since the launch of Sensex in 1979, major events responsible for volatility are:
 Assassination of Key Political Leaders
 Major Financial Scandals (Harshad Mehta, Ketan Parikh, Satyam Fraud)
S&P BSE Sensex
 Financial Crisis (Dot Com Bubble, Sub Prime Crisis)
 Terrorist Attacks & War (Iraq War, 9/11 Attack, Mumbai 26/11) 1-Apr-79 31-Oct-17 CAGR
 11 Different Governments
 Natural Disasters (Earthquake, Tsunami)
100 33213 16.23%
 Commodity Crash +
 Currency Demonetisation Dividend Yield
Source: MFIE, Calendar Year returns are absolute returns as on 31st Dec 2016. Launch date of Sensex is 1st Apr 1979 with a base value
of100. Calender Year Returns: From 1st Jan to 31st Dec every year. Past performance may or may not be sustained in future. 2
The information contained herein is solely for private circulation for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.
Major Factors Building up Volatility in the near term
Global Macro
Economic
Developments
Political Quarterly
Events Results
Growth FII Flows

Concerns Movement
RBI/
Government Volatility Unknown
Policy
Volatility is the only Certainty going ahead!!

3
Which is more likely?
One Way Upward Sloping

But Volatile
Value
Value
Time Time
For illustrative purpose only. 4

Sensex’s ECG
Source: MFIE, Daily Return of S&P BSE Sensex Since 2nd Jan1980 till 31st October 2017. Past Performance may or may not be sustained in future. 5
Buy Low & Sell High
- Sounds very easy??
 But How to decide “When to enter & when to exit”
 Greed & Fear - Psychological Barriers

 We often end up doing exactly the opposite.
 Static v/s Dynamic Asset Allocation – Challenges?
 Exit Load structure of the scheme

 Taxation on gains
 Frequency of re-balancing
 Operational issues
 Paper Work
 Limited Man-Power
6
So, what is the Solution?
A model that allows “Buying Low and Selling High”

while keeping human emotions aside
Equity Valuation Equity Valuation

goes Up comes down
Reduce Equity Increase Equity

Exposure Exposure
 Price to book value is less volatile as compared to price to earnings ratio

Why a P/BV  Price to book value is better equipped in gauging intrinsic value of a company
Model?  Book value is a balance sheet item, thereby more reliable than Earning Ratio
7
ICICI Prudential Balanced Advantage Fund
 ICICI Prudential Balanced Advantage Fund (BAF) removes the psychological

barrier (Greed & Fear) for its investors.
 The Scheme allocates higher in equity when the Equity Market Valuation is low
and lower when the Equity Market Valuation is high.
Stock Asset Derivative

Selection Allocation Strategy
Net Equity Level Derivative

Blend of Large Range 30-80% Exposure for
and Mid Cap based on In- Hedging /
Stocks House P/BV Portfolio
Model Rebalancing
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 investment pattern, strategy and
risk factors. The sector(s)/stock(s) mentioned in this presentation 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). 8
Equity Taxation, But How??
Desired Equity Gross Equity Derivative Net Equity

Date P/BV
Level (%) Level(%) Position(%) Level(%)
Month 1 3.82 47.14 65.00 -17.86 47.14
Month 2 2.76 70.98 71.00 0.00 70.98
Month 3 2.71 77.00 77.00 0.00 77.00
Month 4 2.93 58.00 65.00 -7.00 58.00
Minimum 65%
Equity Equity at all point of
Taxation at All Desired Net Equity
time.
Point of Time Levels with the use of
Derivatives
Above example is for illustrative purposes only. All Figures pertaining to Equity Levels in the Scheme are used for the purpose of Illustration and understanding only. 9
ICICI Prudential Balanced Advantage Fund’s Net Equity Levels
vis-à-vis Nifty 50 P/BV Ratio
Nifty 50 Price to Book Ratio v/s ICICI Prudential Balanced

Advantage Fund Net Equity Levels
80.00 Net Equity P/Bv Net Equity 3.80 Period Period Correlation
77.4 3.76 77.7
75.00 Last 1 year Nov'16 - Oct'17 -0.69
Net Equity Levels of BAF (%)
Nifty 50 Price to Book Ratio

3.60
70.00
Last 2 years Nov'15 - Oct'17 -0.80
65.00
3.40 Last 3 years Nov'14 - Oct'17 -0.86
60.00
55.00 3.20 Last 4 Years Nov'13 - Oct'17 -0.79
50.00 Last 5 Years Nov'12 - Oct'17 -0.77

3.00
40.00 P/Bv
P/Bv Net Equity 2.81
35.00
2.71 34.3
30.00 2.60
Net Equity Exposure of BAF % P/B Ratio Nifty 50
Source: NSE India & MFIE, As on 31st October 2017. 10

ICICI Prudential Balanced Advantage Fund’s Net Equity Levels
vis-à-vis Sensex Levels
Sensex Levels vis-a-vis ICICI Prudential BAF Net Equity Exposure (%)
33000 80.00
31000 75.00
BAF Net Equity Exposure (%)

29000 70.00
65.00
27000
Sensex Levels
60.00
25000
55.00
23000
50.00
21000
45.00
19000 40.00
17000 35.00
15000 30.00
Sensex Level Net Equity Exposure %

Source: BSE India & MFIE, As on 31st October 2017. ICICI Prudential BAF stands for ICICI Prudential Balanced Advantage Fund 11
ICICI Prudential Balanced
Sensex Level Period Sensex’s Sensex Return ICICI Prudential Balanced
Advantage Fund’s NAV
(Flat Market) (From & To) Movement (CAGR)^ Advantage Fund (CAGR)
Movement
25 May 2010 16022 12.10
16k to 16k
05 Jun 2012 16021 14.35 0% 8.75%
Performance in various Flat Market Scenarios

03 Mar 2010 17000 12.32
ICICI Prudential Balanced Advantage Fund’s

17k to 17k 0% 8.00%
Source: MFIE. Past performance may or may not be sustained in future. NAV for
21 Jun 2012 17033 14.71
ICICI Prudential Balanced Advantage Fund - Growth. ^Round-off figures.

04 Feb 2011 18008 13.30
18k to 18k
28 Aug 2013 17996 16.00
0% 7.47%
21 Jan 2011 19008 13.67
19k to 19k
12 Jun 2013 19041 16.97
0% 9.46%
21 Sep 2010 20002 13.92
20k to 20k
30 Jan 2013 20005 17.42
0% 9.96%
04 Nov 2010 20894 14.35
21k to 21k
18 Oct 2013 20883 18.16 0% 8.29%
09 May 2014 22994 20.53
23k to 23k
29 Feb 2016 23002 23.72
0% 8.30%
16 May 2014 24122 21.00
24k to 24k
20 Jan 2016 24062 24.75
0% 10.26%
05 Jun 2014 25020 21.94
25k to 25k
09 Dec 2015 25036 25.54
0% 10.57%
02 Jul 2014 25841 22.44
26k to 26k
20 Apr 2016 25844 26.31 0% 9.23%
02 Sep 2014 27019 23.45
27k to 27k
30 Jun 2016 27000 27.45 0% 9.00%
12 Nov 2014 28009 24.33
28k to 28k
27 Jul 2016 28024 28.27 0% 9.19%
22 Jan 2015 29006 25.08
29k to 29k
08 Sep 2016 29045 29.18 0% 9.73%
29 Jan 2015 29682 25.24
30k to 30k
07 Apr 2017 29707 30.33
0% 8.75% 12
Returns Experience in All types of Market Conditions
1 Year Return at the end of Each Quarter (Since Jun’10 to Sep’17)
Falling Market Range-Bound Market
Negative Return by Nifty Nifty Return of 0% to 12%
10.22 7.29
5.96 4.41 6.70 14.63 15.23
1.10
10.44 9.39 10.93 9.95 10.82
-2.45 -0.20 -0.96 6.95 8.31 7.35
-8.38 -5.73 -4.06 6.30 6.76
-8.48 -8.84 3.01
-18.02 0.56
-24.21
Sep'11 Dec'11 Mar'12 Jun'12 Sep'15 Dec'15 Mar'16 Jun'16 Jun'11 Mar13 Sep'13 Dec'13 Jun'15 Sep'16 Dec'16
38.87 Rising Market

35.70
33.14
31.04 30.12 31.39
Nifty Return more than 12%
27.54 29.04
26.61 26.65
20.42
18.13 17.83 17.94 18.55
15.27 15.10 14.88 13.94
13.46 12.97 11.68
Sep'12 Dec'12 Jun'13 Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 Mar'17 Jun'17 Sep'17
I Pru BAF Nifty 50 Index
Source: MFIE & Internal, Past performance may or may not be sustained in future. I Pru BAF stands for ICICI Prudential Balanced Advantage Fund. Data as on 30th Sep 2017 only. 13
Financial Year Return Comparison
ICICI Prudential
S&P BSE
Return Period Balanced Advantage Remarks
Sensex (%)
Fund - Growth (%)
1st April 2016 to 31st March 2017 18.03 17.22 Wealth Creation
1st April 2015 to 31st March 2016 0.75 -10.33 Limits Downside
1st April 2011 to 31st March 2012 5.77 -10.41 Limits Downside
1st April 2010 to 31st March 2017 138.67% Absolute 67.42% Absolute
1st April 2010 to 31st March 2017 13.23% CAGR 7.64% CAGR
Source: MFIE, Past performance may or may not be sustained in future. 14

Limiting the Volatility
Daily Returns of ICICI Prudential Balanced Advantage Fund v/s S&P BSE Sensex
IPru BAF = 0.50 Sensex + 0.033

5.00 IPru BAF (%) Period: 1st Mar 2010 to 31st October 2017
R² = 0.83
4.00
On an average IPru BAF has
added an Alpha of 0.033 on daily
basis with a Beta of only 0.50 3.00
2.00
1.00
S&P BSE Sensex (%) S&P BSE Sensex (%)

0.00
-6.00 -4.00 -2.00 0.00 2.00 4.00 6.00
-1.00
S&P BSE
-2.00 Criteria IPru BAF
Sensex
Maximum one Day Return 3.77% 2.32%
-3.00
Minimum One Day Return -5.94% -3.65%
-4.00 Average Daily Return 0.04% 0.05%

Absolute Return 98.0% 168.9%
IPru BAF (%) -5.00 CAGR Return 9.31% 13.76%
Total No. of observations are 1899
Source: MFIE & Internal, Past performance may or may not be sustained in future. IPru BAF stands for ICICI Prudential Balanced Advantage Fund. 15
3 Years Rolling Return on Daily Basis (% CAGR)
3 Years CAGR Rolling Returns on Daily Basis

30.00
S&P BSE Sensex v/s ICICI Prudential Balanced Advantage Fund
Since: 1st March 2010 till 31st October 2017, Total Observations 1144
25.00
20.00
Positive Investor
Experience
15.00
% CAGR
10.00
IPru BAF Out-performed S&P BSE Sensex in

5.00
100% of the observations
(All 1144 Observations)
0.00
Mar'13
Apr'13
May'13
Jun'13
Jul'13
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
Jan'14
Feb'14
Mar'14
Apr'14
May'14
Jun'14
Jul'14
Aug'14
Sep'14
Oct'14
Nov'14
Dec'14
Jan'15
Feb'15
Mar'15
Apr'15
May'15
Jun'15
Jul'15
Aug'15
Sep'15
Oct'15
Nov'15
Dec'15
Jan'16
Feb'16
Mar'16
Apr'16
May'16
Jun'16
Jul'16
Aug'16
Sep'16
Oct'16
Nov'16
Dec'16
Jan'17
Feb'17
Mar'17
Apr'17
May'17
Jun'17
Jul'17
Aug'17
Sep'17
Oct'17
-5.00
ICICI Prudential Balanced Advantage Fund - Growth S&P BSE Sensex
Source: MFIE, Period: 1st March 2010 (Investment Date) or 1st March 2013 (First Observation Date) to 31st October 2017. Past performance may or may not be sustained in
future. IPru BAF stands for ICICI Prudential Balanced Advantage Fund
16
3 Years Rolling Return on Daily Basis (% CAGR)
Since 01-Mar-2010 (First Observation on 01-Mar-2013) till 31-Oct-2017

Total No. of Observations 1144

Criteria S&P BSE Sensex
Advantage Fund
Minimum Return 6.26 % -1.53 %

Maximum Return 24.25 % 21.94 %
Average Return 15.12 % 9.98 %
StDev. 4.12 5.60
Negative Observation 0 24
0% 25%
0% to 6% 0 observations 262 observations
6% to 10% 132 323

10% to 15% 436 279
88% 47%
Above 15% 576 observations 256 observations
Source: MFIE, Period: 1st March 2010 (Investment Date) or 1st March 2013 (First Observation Date) to 31st Oct 2017. Past performance may or may not be sustained in future. 17
Latest Performance (%)
(NAV as on 31st October 2017)

1 2 3 4 5 6 7
Year Years Years Years Years Years Years
Scheme Name
ICICI Prudential Balanced Advantage Fund

13.13 12.00 10.80 15.62 15.19 15.43 12.79
(Growth Option)
Crisil Balanced Fund – Aggressive Index

15.40 12.05 8.56 12.41 11.89 11.11 8.60
(Benchmark)
Nifty 50 Index 19.77 13.16 7.48 13.17 12.95 11.67 7.78
Out-Performance over Benchmark (Alpha) -2.27 -0.05 2.24 3.21 3.30 4.32 4.19
Out-Performance over Nifty 50 Index (Alpha) -6.64 -1.16 3.31 2.45 2.24 3.76 5.01
Average Monthly Net Equity Levels (%) 50.6 58.9 56.3 56.0 57.4 58.8 59.2
Source: MFIE, NAV as on 31st October 2017. Returns (%) are CAGR. Past performance may or may not be sustained in future. 18
Recent SIP Performance (XIRR)
NAV as on 31st October 2017

SIP Period Nifty 50 Index
Advantage Fund – Growth Option
1 Year 16.94% 24.64%

2 Years 15.08% 19.13%
3 Years 12.62% 12.99%
4 Years 13.47% 12.69%
5 Years 14.42% 13.02%
6 Years 15.02% 13.11%
7 Years 14.70% 12.11%
Since 1st Mar 2010 14.45% 11.58%
SMART SIP
in IPru BAF
Source: MFIE, SIP starting Date is 1st October & Ending date is 31st October for respective periods. Closing on 31st October 2017. Report Date (NAV Date): 31st October 2017.
Past performance may or may not be sustained in future. IPru BAF stands for ICICI Prudential Balanced Advantage Fund – Growth Option. 19
AUM Trend in Rs. Crore
Balanced Advantage Fund

22465
AUM Trend (In Rs. Crore)
20193
19043
18221
17368
Let’s Grow 16253
15314
Together !! 14180
13186
12418
11020
10160
9019
8009
6442
5006
4305
3322
2231
1167
204 528
Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Oct-17
AUM (In Rs. Crore)
Source: MFIE, Month End AUM Numbers. As on 31st October 2017. 20

Let’s look at it once again…
 But How to decide “When to enter & when to exit”?
 Greed & Fear - Psychological Barriers Pre-determined

Matrix to
 We often end up doing exactly the opposite. decide Equity
Levels
 Static v/s Dynamic Asset Allocation – Challenges?

No Exit
Load Within
 Exit Load structure of the scheme the scheme
 Taxation on gains
No Tax *
 Frequency of re-balancing
 Operational issues
 Paper Work Daily Re-
 Limited Men-Power balancing of
No Paper- the portfolio
work
*DDT & LTCG Tax is Nil for Equity Mutual Fund Schemes as per Finance Bill 2017-18. No LTCG Tax if holding is for more than one year, basis prevailing tax laws.
21
DDT = Dividend Distribution Tax, LTCG = Long Term Capital Gain
Need for Regular Cash Flow??
Opt for Automatic Withdrawal Plan (AWP)
Invest in ICICI Prudential Balanced Advantage Fund-Growth Option: Opt for AWP
Minimum Investment of Rs 1 Lac: AWP from Principal Amount
3 Options Available: AWP from 2nd Month or 13th Month or any Month as per
Investor’s choice
AWP Amount: 0.75% of Invested amount per month (i.e. 9% Annually)
AWP on 25th of every month: Money hits the account in T+3 business days*
*Kindly note that SEBI prescribed time limit for redemption payment is 10 business days 22
ICICI Prudential Balanced Advantage Fund - AWP
*No Exit Load

Regular Cash
Tax Efficiency No TDS for Early
Flow
Withdrawal
AWP allows investors to withdraw a fixed sum of money periodically (in this case
0.75% of the invested amount) depending
on the option chosen by the investor.
Generating a cash flow of 9% p.a. of the Capital Invested, for example

Rs 90,000 for an investment of Rs. 10 lac in a year.
*The Current exit load Structure for ICICI Prudential Balanced Advantage Fund: 15% of units upto 18 months of allotment – Nil. More than 15% units within 18 months -
1%, after 18 months - Nil. 23
Last 3 Years Back-Tested Illustration
On Rs. 10 lac investment made on 01-November-2014
Capital Capital Gain Tax

Date NAV Units Outstanding Monthly AWP Units Withdrawn Principle Capital Gain Tax
Gain/(Loss) Type
03/11/2014 24.19 41339 0
25/11/2014 24.44 41033 7500 307 7423 77 STCG Tax 14
26/12/2014 24.38 40725 7500 308 7442 58 STCG Tax 10
27/01/2015 25.17 40427 7500 298 7208 292 STCG Tax 52
25/02/2015 25.37 40131 7500 296 7151 349 STCG Tax 62
25/03/2015 25.32 39835 7500 296 7165 335 STCG Tax 59
27/04/2015 24.91 39534 7500 301 7283 217 STCG Tax 39
25/05/2015 25.63 39241 7500 293 7079 421 STCG Tax 75
25/06/2015 25.62 38949 7500 293 7081 419 STCG Tax 74
27/07/2015 26.06 38661 7500 288 6962 538 STCG Tax 96
25/08/2015 25.51 38367 7500 294 7112 388 STCG Tax 69
28/09/2015 25.56 38073 7500 293 7098 402 STCG Tax 71
26/10/2015 26.47 37790 7500 283 6854 646 STCG Tax 115
26/11/2015 26.23 37504 7500 286 6917 583 LTCG Tax 0
-- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
25/09/2017 31.85 31671 7500 235 5696 1804 LTCG Tax 0
25/10/2017 32.71 31442 7500 229 5546 1954 LTCG Tax 0
Valuation of O/s
Particulars Total AWP Taxable Income Tax To be paid Tax as a % of AWP Units Outstanding
Units*
Amount Rs. 2,70,000 Rs. 4,141 Rs. 736 0.27% 31,442.15 Rs. 10,34,761
*Valuation as on 31st October 2017. Internal data Computation. The above simulation is for illustration purposes only. ICICI Prudential Mutual Fund/AMC does not provide assurance or
guarantee of performance of AWP feature. Past performance may or may not be sustained in future. Investment in Mutual Funds is subject to market and various other risks and there are
various factors that can impact the performance of this feature. It is advisable to consult with your financial advisor to understand the terms and conditions of this feature before investing.
Tax impact is basis prevailing tax laws. STT is ignored for ease of calculation. STCG Tax is assumed to be 17.7675% (15%+15% Surchage+3% Cess) for the purpose of above calculation. 24
Consistent Monthly Cash Flow
Introducing
Monthly Dividend^ + Automatic Withdrawal Plan
By choosing Monthly Dividend + Automatic Withdrawal Plan, you can

receive dividend declared by the Scheme per month.
In the rare case, the Scheme does not declare a dividend, you can withdraw 0.75%
of your net asset value under the Automatic Withdrawal Plan.
Illustration for Rs. 10,00,000 investment

Month Monthly Dividend Automatic Withdrawal Plan
1  
2  Rs. 7500
3  
4  
^Subject to availability of distributable surplus and approval of Trustees. It should be noted that pursuant to payment of dividend, the NAV of the plan/dividend option of the
25
Scheme would fall to the extent of dividend payout and statutory levy, if any.
To Summarise
 ICICI Prudential Balanced Advantage Fund is a uniquely designed product to

“Benefit out of Volatility”
 Buy Low, Sell High
 Potential to generate Alpha in “Full Market Cycle”

 Falling Market: Reduce Down-side
 Rising Market: Participate in Market rally
 Tax Free Long Term Gains*
 An All Season Equity Scheme
*No LTCG Tax if holding is for more than one year, basis prevailing tax laws. DDT & LTCG Tax is Nil for Equity Mutual Fund Schemes as per Finance Bill 2017-18. DDT = Dividend
Distribution Tax, LTCG = Long Term Capital Gain 26
Scheme
Portfolio Features
Features
Type of Scheme Open-Ended Equity Fund
ICICI Prudential Balanced Advantage Fund & ICICI Prudential
Plans
Balanced Advantage Fund - Direct
Options Growth & Dividend (Monthly Dividend & Others)
Minimum Application Amount Rs. 5,000 (plus in multiples of Re.1)
Minimum Additional Application Amount Rs. 1,000 (plus in multiples of Re.1)
Minimum Redemption Amount Rs. 500 or all units where amount is below Rs. 500
Entry Load Not applicable
15% of units up to 18 months from
Nil
allotment
Exit Load Above 15% of units within 18 Months 1% of applicable NAV
More than 18 months Nil
Equity: Sankaran Naren (Managing this fund from 14th July 2017 &
overall 26 years of experience), Rajat Chandak (Managing this fund
since Sep, 2015 & overall 8 years of experience), Vinay Sharma
Fund Manager (Managing this fund from 14th July 2017 & overall 11 years of
experience)
Debt: Manish Banthia (Managing this fund since Nov, 2009 & overall
13 years of experience)
Benchmark Index CRISIL Balanced Fund – Aggressive Index
SIP / SWP / STP / AWP Available
27
Disclaimer
ICICI Prudential Balanced Advantage Fund is suitable for investors who are seeking*:
 Long term wealth creation solution

 An equity fund that aims for growth by investing in equity and derivatives.
*Investors should consult their financial advisers if in doubt about whether the
product is suitable for them.
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. Data source: Bloomberg, except as mentioned specifically.
Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd. (the AMC) has used information that is publicly available, including
information developed in-house. 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 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 investment pattern, strategy and risk
factors. The sector(s)/stock(s) mentioned in this presentation 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).
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.
28

4090 IPru BAF Detailed Presentation November 2017

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Ab market ke utar-chadhav

Growth FII Flows

Volatility is the only Certainty going ahead!!

One Way Upward Sloping

For illustrative purpose only. 4

 But How to decide “When to enter & when to exit”

 Greed & Fear - Psychological Barriers

 Static v/s Dynamic Asset Allocation – Challenges?

 Exit Load structure of the scheme

A model that allows “Buying Low and Selling High”

Equity Valuation Equity Valuation

Reduce Equity Increase Equity

 Price to book value is less volatile as compared to price to earnings ratio

 ICICI Prudential Balanced Advantage Fund (BAF) removes the psychological

Stock Asset Derivative

Net Equity Level Derivative

Desired Equity Gross Equity Derivative Net Equity

Month 1 3.82 47.14 65.00 -17.86 47.14

Month 2 2.76 70.98 71.00 0.00 70.98

Month 3 2.71 77.00 77.00 0.00 77.00

Month 4 2.93 58.00 65.00 -7.00 58.00

Nifty 50 Price to Book Ratio v/s ICICI Prudential Balanced

Nifty 50 Price to Book Ratio

50.00 Last 5 Years Nov'12 - Oct'17 -0.77

Net Equity Exposure of BAF % P/B Ratio Nifty 50

Source: NSE India & MFIE, As on 31st October 2017. 10

BAF Net Equity Exposure (%)

Sensex Level Net Equity Exposure %

Performance in various Flat Market Scenarios

ICICI Prudential Balanced Advantage Fund’s

ICICI Prudential Balanced Advantage Fund - Growth. ^Round-off figures.

38.87 Rising Market

Source: MFIE, Past performance may or may not be sustained in future. 14

IPru BAF = 0.50 Sensex + 0.033

S&P BSE Sensex (%) S&P BSE Sensex (%)

-4.00 Average Daily Return 0.04% 0.05%

3 Years CAGR Rolling Returns on Daily Basis

IPru BAF Out-performed S&P BSE Sensex in

Since 01-Mar-2010 (First Observation on 01-Mar-2013) till 31-Oct-2017

ICICI Prudential Balanced

Minimum Return 6.26 % -1.53 %

6% to 10% 132 323

(NAV as on 31st October 2017)

ICICI Prudential Balanced Advantage Fund

Crisil Balanced Fund – Aggressive Index

Nifty 50 Index 19.77 13.16 7.48 13.17 12.95 11.67 7.78

ICICI Prudential Balanced

1 Year 16.94% 24.64%

Balanced Advantage Fund

AUM (In Rs. Crore)

Source: MFIE, Month End AUM Numbers. As on 31st October 2017. 20

 But How to decide “When to enter & when to exit”?

 Greed & Fear - Psychological Barriers Pre-determined

 Static v/s Dynamic Asset Allocation – Challenges?

Minimum Investment of Rs 1 Lac: AWP from Principal Amount

AWP Amount: 0.75% of Invested amount per month (i.e. 9% Annually)

*No Exit Load

Generating a cash flow of 9% p.a. of the Capital Invested, for example

Capital Capital Gain Tax

By choosing Monthly Dividend + Automatic Withdrawal Plan, you can

Illustration for Rs. 10,00,000 investment

 ICICI Prudential Balanced Advantage Fund is a uniquely designed product to

 Buy Low, Sell High