IC ICIC ICI I Prudential dential Value lue Fund d Series ries - PowerPoint PPT Presentation

IC ICIC ICI I Prudential dential Value lue Fund d – Series ries 13 NFO Period – 25th April 2017 to 9th May 2017 2017 Benchmar hmark k – S&P P BSE 500 Index x This Product is suitable for investors who are seeking*:  Long term wealth creation  A close ended equity fund that aims to provide capital appreciation by investing in a well diversified portfolio of stocks through fundamental analysis. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The recipient of this material is solely responsible for any action taken based on this material. The inf The infor orma mation ion con ontained ained herein herein is is sole solely ly for or priva rivate circ irculat ulation ion fo for rea reading/ ding/understanding nderstanding of of re regis gistere ered Adv dviso isors/ rs/ Distr stribu ibutors ors and should ould not be be circulat ulated to to inve vest stor ors/p s/prosp ospec ective ive inve vestor stors. 1

Why Equities ties Now? Fixed ed Income Ral ally is Genera erally lly Followe wed By Equity Histor ory suggest ggests aft fter er interes rest rate te cycle bott ttoms ms, , equity ty rall lly star tarts 35000 18 S&P BSE Sensex Repo Rate 30000 16 End of rate cut cycle and Start of End of rate cut S&P BSE Sensex Levels 25000 14 Equity rally cycle and Start of Repo Rate (%) Equity rally 20000 12 15000 10 10000 8 5000 6 0 4 Source: Bloomberg, data as of March 31, 2017. Past performance may or may not be sustained in future; RBI: Reserve Bank of India. 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.

Nominal nal IIP – On The Path h To Growth th Nom Nomin inal IIP al IIP (Y (YoY oY%, %, 3MMA) MMA) 28% 28% 23% 23% The increas Th increase in in IIP IP 18% 18% sugge ggests ts that th the th negati egative impac impact of of demonetis dem etisation ation is is 13% 13% fadin fa ding and that that remonetis remo etisation ation is is 8% 8% wel ell underw derway ay. Therefore, There fore, 3% 3% bu busines inesses es are are expec expected ted to to rec recover er going goin -2 -2% forw rwar ard. -7 -7% 1999 1999 2001 2001 2003 2003 2005 2005 2007 2007 2009 2009 2011 2011 2013 2013 2015 2015 2017 2017 Source: CEIC, Morgan Stanley Research, Data as on Jan 2017; MMA – Monthly Moving Averages; YoY – Year-on-Year; IIP - Index of industrial production 3

GDP G P Growth wth – Th The Bo Botto tom of the he Cycl cle e is Behind us us Real GDP YoY Average GDP Growth is 5.5% 11% 10.3% 9.8% 10% 9.3% 9.3% 9% 8.5% 7.9% 7.9% 7.9% 8% 7.2% 7.1% 6.6% 7% 6.5% 4.8% 6% 5.5% 5% 3.9% 3.8% 3.8% 4% 3% Over the e last st few years, s, India dia has s take ken n a host st of econo nomic mic reform rms s init itiat iative ive, , includin luding the he Goods s and Servic vices es Tax (GST) T) and d liber eralisa alisation ion of the he FDI regime, e, with h a view to improve ve business siness climat ate e and promote e growth. The GST is expec ected d to roll out from July ly 2017. . All these ese init itiat iative ives s combine ined d is expec ected ed to help p pick-up of GDP growth-rat ate. 4 Source: CEIC, Morgan Stanley Research Data as on Mar 2017; GDP – Gross Domestic Product; FDI – Foreign Direct Investment

Cu Curr rren ent t Op Oppor portunities tunities > Un > Unorganised ganised to Orga ganised nised > Infrastructure Sector The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 5 circulated to investors/prospective investors.

Unorgan rganised ised to to Organised anised Shift ft Benefit GST Organised Demonetisation Introduction of GST will help create Players a level-playing field for UnOrganised The demonetisation drive is sector and Organised sector. expected to benefit Organised sectors. Opportuni tunity ty: : This may res esult ult in higher gher topline ne and Will Lower tax bottom om line ne Consumers to use This can shift evasion, increase growt owth for consumers more cashless compliance. Facilitate brande ded away from local medium of seamless movement compani anies. s. transaction. manufactures of goods. Source: Edelweiss Securities; GST - Goods & Service Tax The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 6 circulated to investors/prospective investors.

India: a: On The Cusp of Accele elerat rated Shift ift to to Or Organized ganized Segment ment This share has huge India's scope to increase as the overall economy moves GDP: from informal to formal $2.0tn aided by various government reforms Formal economy: $1.0tn Listed companies (Organised Contribution of Sector): organised/listed companies is $0.5 tn currently 1/4th of the economy Source: Edelweiss Securities; All $ represents United States Dollar The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 7 circulated to investors/prospective investors.

Opportunity ity Seen n as there e is a sh shift ift towards s Organ anised ised economy my Secto tors s with th high share are of Share are of Unorga ganised Unorga ganised sed Busi sines esses ses Business nesses es in Secto tor  Food Services 90% 80%  Apparel  Plywood 70% 60%  Sanitary ware 50%  Tiles 50%  Footwear 40% 0%  Electric Goods  Pipes 40% 40%  Small Appliances 30%  Paints Source: Company data, Credit Suisse estimates The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 8 circulated to investors/prospective investors.

Organised anised Vs. . Unorg rgan anised ised Strat ategy gy of Orga ganis nised Player yers Strat ategy gy of UnOrganis nised Player yers Large Distribution Network Scattered Distribution Network and More Regional Bias - Superior Quality - Inferior Quality - Accounting of Taxes - Under Reporting of Tax - Thus, Optimally Priced - Thus, Sub-Optimally Priced Branding – Familiarity & Trust Brand Push – Offer higher margins to distribution channel Economies of Scale Diseconomies of scale Shift GDP P Contri ribu butio ion GDP P Contri ribu butio ion Source: National Commission for Enterprises in the UnOrganised Sector The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 9 circulated to investors/prospective investors.

Cur urre rent nt Oppor portuni tunities ties > Unorganised to Organised > I > Infr frastructure astructure Se Sector ctor The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 10 circulated to investors/prospective investors.

Why Infrastruc structur ture e Sec ector? or? High gher er govern ernmen ment t 100 0 Smar art t 10,00 000 Km of expendi diture re on Cities New Roads infra rastr tructu cture re proje oject cts High gher er Increas rease e in tax ax Governme rnment t revenue under r Revenue IDS S UDAY Scheme For financ ancial ial reviv ival al Stab able e Digita ital India ia Good ods and Services Tax ax & of Power r Governme rnment t & distr trib ibut utio ion n Demonetis etisat ation ion Poli licy Initia itiativ tives es companie anies Strong rong Lower er Curre rent t Accou ount t Macroe acroecon conomic omic Bas ase Defic icit it & Infla lation ion Sources : CLSA | UDAY: Ujwal DISCOM Assurance Yojana | IDS: Income Disclosure Scheme The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be 11 circulated to investors/prospective investors.