A close-ended equity fund following consumption theme.

ICICI Prudential Bharat Consumption Fund

Investment Objective of ICICI Prudential Bharat Consumption Fund Series 1*

The investment objective of the Scheme is to provide capital appreciation by investing predominantly in equity and equity related instruments of sectors that could benefit from growth in consumption and related activities.

However, there is no assurance that the investment objective of the Scheme would be achieved.

*Source: Scheme Information Document

(Learn how to read the Scheme Information Document here.)

Is ICICI Prudential Bharat Consumption Fund for you?

ICICI Prudential Bharat Consumption Fund (IPBCF) Series 1 is a close-ended equity fund maturing in 1300 days from the date of allotment of units.

“The scheme aims to provide capital appreciation by investing in well-diversified portfolio of stocks that could benefit from growth in consumption and related activities.”

To achieve this investment objective, it aims to invest in in equity and equity related instruments of companies that could benefit from consumption and related activities which are part of sectors in the benchmark index (Nifty Consumption Index).

Consumption sector includes sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc.

Being a close-ended scheme, IPBCF is open for investments from March 22, 2018 to April 05, 2018. Post that no new fresh investment will be accepted. Hence, consider your liquidity requirements before you invest.

Sector funds are high risk proposition. The fortune of the fund lies on the performance of overall consumption sector.

Hence, ICICI Prudential Bharat Consumption Fund is suitable only for investors with high risk appetite and investment horizon of more than 3.5 years.

Asset Allocation of ICICI Prudential Bharat Consumption Fund

The asset allocation of ICICI Prudential Bharat Consumption Fund under normal circumstances will be as under:

Instruments	Indicative allocations (% of total assets)		Risk Profile High/Medium/Low
	Minimum	Maximum
Equity and Equity Related Instruments of companies that could benefit from consumption and related activities and are part of sectors in the benchmark index	80	100	High
Equity and Equity related instruments of companies other than the ones that could benefit from consumption and related activities	0	20	Medium To High
Debt and Money Market Instruments	0	20	Low to Medium

The Scheme may also take exposure to:

• Derivative instruments upto 50% of the Net assets of the Scheme
• ADRs/ GDRs/ Foreign Securities/ Overseas ETFs upto 50% of Net assets of the Scheme
• Securitized Debt upto 50% of debt portfolio
• Stock Lending upto 20% of its Net assets. The Scheme shall also not lend more than 5% of its net assets to any counter party

(Source: Scheme Information Document)

Investment Strategy Of ICICI Prudential Bharat Consumption Fund

Being a close-ended sector fund ICICI Prudential Bharat Consumption Fund will predominantly invest into equity and equity related instruments of companies that will directly or indirectly benefit from the consumption and related activities.

The scheme may follow combination of value and growth style of investing to build the portfolio.  It will follow and unbiased approach and invest across the market capitalisations (large-cap, mid-cap and small-cap companies).

The scheme will invest upto 80% of its net assets into equity and equity related instruments of companies benefiting from consumption and related activities.

It may allocate upto 20% of its net assets in equity instruments of companies other than consumption sector. It is also mandated to invest upto 20% of its net assets into debt and money market securities.

The scheme may also invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds (as permitted by SEBI guidelines). However, schemes under the management of other asset management companies shall not exceed 5% of the Net Asset Value of the fund.

Further, it is also mandated to invest upto 20% of its net assets into debt and money market instruments. The Scheme may use derivatives instruments like Stock/ Index Futures or such other derivative instruments as may be introduced from time to time, within the limit specified.

Fund Managers for ICICI Prudential Bharat Consumption Fund

ICICI Prudential Bharat Consumption Fund will be jointly managed by Mr. Sankaran Naren and Mr. Atul Patel and the investments under foreign securities will be managed by Ms Priyanka Khandelwal

Mr. Sankaran Naren is Executive Direct of ICICI Prudential Asset Management Company since April 22, 2016. He is has to his honors B.Tech – IIT Madras and PGDM from IIM Kolkata.  He has over 27 years of experience in Fund Management and Equity Research, Operations and so on. He has been associated with ICICI since 2004. Prior to this he was associated with Sify Securities India Pvt. Ltd., HDFC Securities and Yoha Securities.

Other Schemes managed by Mr Naren are ICICI Prudential Balanced Advantage Fund (Equity Portion), ICICI Prudential Dynamic Plan, ICICI Prudential Focused Bluechip Equity Fund, ICICI Prudential Infrastructure Fund, ICICI Prudential Top 100 Fund and a few more.

Mr. Atul Patel is Fund Manager with around 8 years of experience. He is a graduate in Commerce, Chartered Accountant, CWA and CFA (level 3 cleared).

Currently he manages ICICI Prudential Multicap Fund, ICICI Prudential Balanced Fund, ICICI Prudential FMCG Fund, ICICI Prudential Indo Asia Equity Fund along with a few more.

Ms Priyanka Khandelwal is joint manager of this fund looking after the investments into foreign securities. She is a B. Com graduate, Chartered Accountant, Company Secretary and CFA – Level 1 cleared.

Other schemes managed by Ms Khandelwal are ICICI Prudential Global Stable Equity Fund, ICICI Prudential Indo Asia Equity Fund (Asia Portion) and also looks after investments for schemes which has a mandate to make overseas investments.

Fund Outlook of ICICI Prudential Bharat Consumption Fund

It is clear on evaluating the fund’s objective and investment strategy that scheme will have exposure of upto 100% of its net assets into equity and equity related instruments in the consumption sector.

The scheme aims to benefit from the companies that may directly or indirectly benefit from consumption led demand in near future.

As per the Boston Consulting Group (BCG) report - The New Indian: The Many Facets of a Changing Consumer – “By 2025, India could rise from the 12th to the 5th largest position in the consumer durables market in the world. Demand growth is likely to accelerate with rising disposable incomes and easy access to credit. Increasing electrification of rural areas and wide usability of online sales would also aid growth in demand”.

Though the consumption sector of India has bright future, investors need to bear in mind that IPBCF is a thematic fund. And the fortune of the fund lies on the overall performance of consumption sector.

Stock selection within the sector is limited. The portfolio construction will be concentrated, thereby giving the miss to the most important benefit of investing in MFs – Diversification.

It is a high-risk category fund with a lock-in of 1300 days (3.5 years). In other words, the money you invest will be available only on maturity. Though the fund will be listed on exchange, close-ended funds do carry risk

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DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014  

About the Company including business activity

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

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1. Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company, except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF and our associates has financial interest in the subject company.
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