Discover the potential of

innovation.
Aim to grow wealth with companies
that adopt innovative strategies.

Invest in
ICICI Prudential
Innovation Fund
NFO April 10, 2023
DATE April 24, 2023

Types of Innovation

1. RADICAL INNOVATION 2. DISRUPTIVE INNOVATION 3. INCREMENTAL INNOVATION

Replace an existing product New affordable products Upgrades to existing

with a brand new one & services catering to products / services /
large customer base process / methodology
Camera for
Washing Old TV Box
clicking pictures
Machine
Smartphone LCD TV
for pictures Refrigerator
LED TV

The above examples are for illustration purpose only. TV – Television. The sector(s)/stock(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 sector(s)/stock(s).
 Innovation Timeline of Major Products / Services

Innovation timeline of major products / services

Source – https://ark-invest.com

Our thoughts on Innovation Theme

INNOVATION ONLY TECHNOLOGY

Innovation can be found across different sectors

including technology

Specialty / Pharma &

Power FMCG Auto
Agro Chemicals Healthcare

Technology Auto Industrial Financial

Telecom
Services Ancillaries Automation Services

The sector(s)/stock(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 sector(s)/stock(s). The above sectors are not exhaustive. Scheme may take exposures to other sectors
basis asset allocation and investment strategy of the scheme.
 Presenting ICICI PRUDENTIAL INNOVATION FUND

About the Scheme

INVESTMENT OBJECTIVE
ASSET ALLOCATION
To generate long term capital appreciation by
The scheme will invest min. 80% in companies
predominantly investing in equity & equity related
adopting innovation strategies and themes &
securities of companies and units of global mutual
Overseas Securities adopting innovation
ķƵŨėơ̶0»Hơ͘ƭŀñƭ͘ĐñŨ͘ĎğŨğǦƭ͘ķƙųŦ͘ņŨŨųǍñƭņųŨ͘
strategies and themes
strategies and themes

SECTOR/THEMES
INVESTMENT APPROACH The scheme can take exposure to companies
involved in product/services/solution related
Bottom-up approach
innovation

ADR /GDR/ FOREIGN EQUITY MARKETCAP BIAS

SECURITIES/MUTUAL FUNDs/ETFs The scheme may invest across marketcap, basis
The scheme may invest upto 20% of its net
suitable opportunities
assets in ADR / GDR / Foreign securities / Mutual
Funds / ETFs

GDR: Global depository Receipts, ADR: American Depository Receipts. Please note the scheme will predominantly investing in
companies that are adopting innovation strategies and themes

Investment Style – Quality / Growth Focused

The portfolio may have a tilt towards Quality / Growth
Investment Style

Value Investment Style#: Quality / Growth Investment Style:

Cash cow businesses trading Businesses maybe with premium
at discount valuation due to their innovation

ĎųǍğ͘ñǍğƙñĸğ͘ƙğǍğŨƵğ͘ųƙ͘ƖƙųǦƭñĎņŝņƭǔ͘
Margin of safety principle growth

High Dividend Yield* Companies with low debt, asset

light-business models, higher margins
ñŨė͘ơƭƙųŨĸ͘ķƙğğ͘Đñơŀ͘ǧųǎ͘ĸğŨğƙñƭņųŨ͘
with leading edge in innovation

Due importance shall be given to

valuations

*Investors please not that dividend declared by stocks is different than Income Distribution cum Capital Withdrawal (IDCW) declared by
mutual fund schemes. Distribution of IDCW is subject to availability of distributable surplus and approval of Trustees. #
https://www.investopedia.com/terms/v/valueinvesting.asp , https://www.investopedia.com/terms/v/valuestock.asp
 Why invest in ICICI Prudential Innovation Fund now?

Undercurrents favoring Innovation theme

PANDEMIC GEO-POLITICS INFLATION

Importance of Uncertainties around As countries look to
supply chain Russia-Ukraine War, ĐųƵŨƭğƙ͘ŀņĸŀ͘ņŨǧñƭņųŨ͘
ėņǍğƙơņǦĐñƭņųŨ͘ǎñơ͘ US-China tensions with domestically
best realized have probed manufactured
during the countries to look for products, innovation
pandemic leading better options to may do well
to good scope reduce dependencies
for innovation

Why ICICI Prudential Innovation Fund now?

The scheme has growth bias which tends to do well in a normalizing interest rate
environment. As globally and domestically, Central Banks seem to approach fag
ğŨė͘ųķ͘ņŨƭğƙğơƭ͘ƙñƭğ͘ŀņřğ͘ĐǔĐŝğ̪͘ĸƙųǎƭŀ͘ơƭųĐřơ͘Ŧñǔ͘ƖğƙķųƙŦ͘ĎğŨğǦƭƭņŨĸ͘ƭŀğ͘®ĐŀğŦğ

Rate hikes by key Central Banks

6.50%
+250 bps
6.0%
4.75%
4.5% 4.00% 4.00%
+450 bps
3.0% 2.50% +350 bps

+300 bps
1.5%
0.25% 0.50%
0.0%
-0.50%
-1.5%
US Eurozone UK India
Feb-22 Feb-23

Source – US Fed, ECB (European Central Bank), Bank of England, RBI. UK – United Kingdom.
Investment Process

1. Sector/Theme 3. Stock Universe 5. Quantitative 7. Portfolio

Analyst Broad stock universe will Assessment Construction
Responsible for be shortlisted basis Companies will then be Finally, based on sector &
identifying trends in innovation trends assessed basis FCF, OCF, ơƭųĐř͘ǎğņĸŀƭñĸğơ̪͘ǦŨñŝ͘
particular sector or impact on margins etc. portfolio is constructed
theme

2. Trend Evaluation 4. Qualitative Assessment 6. Sector Allocation

Fund manager will review Companies will be assessed on Macro factors like
and evaluate trends along qualitative parameters like Govt.push,
with analysts Management execution track Global environment etc.,the
record, strategic partnership etc. weightages for sector/stock
are decided.
FCF: Free Cash Flow, OCF: Operating Cash Flow, Govt.: Government of India. Above is for illustration purpose only.
The above process is indicative and all the aforesaid need not be considered for all the investments. There could be
other factors that can be considered by the Fund Manager for the purpose of investments. The portfolio would be
subject to periodic review and changes.

Summary

Innovation pace has picked-up in the last decade compared to previous decades

Innovation is a theme which can occur across sector/theme/companies and

market cap

India has a robust ecosystem in place for nurturing innovation

ơ͘ĐųƵŨƭƙņğơ͘ŝųųř͘ƭų͘ĎğĐųŦğ͘ņŨĐƙğñơņŨĸŝǔ͘ơğŝķ̿ơƵķǦĐņğŨƭ͘ņŨ͘ƭğƙŦơ͘ųķ͘ƙğơųƵƙĐğơ̪͘ƭŀğ
theme may do well going forward globally & domestically

The AMC will take necessary steps for identifying potential trends in various
sectors/themes
 Portfolio Features
Type of Scheme An open-ended equity scheme following innovation theme
ICICI Prudential Innovation Fund – Regular Plan & ICICI Prudential
Plans
Innovation Fund – Direct Plan
Options Growth & IDCW*
Minimum Application Amount Rs. 5,000 (plus in multiples of Re.1)
Minimum Additional Application Rs. 1,000 (plus in multiples of Re.1)
Amount
Minimum Redemption Amount Any Amount
Entry Load Not applicable
Less than 12 months 1% of applicable NAV
Exit Load
More than 12 months Nil
Anish Tawakley and Vaibhav Dusad, for Overseas investment Sharmila
Fund Manager
D’Mello
Benchmark Index Nifty 500 TRI
SIP / SWP / STP Available
*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.

Riskometer & Disclaimer

ICICI Prudential Innovation Fund (An open ended equity scheme following innovation theme) is suitable for
rate Moderate
Mode
investors who are seeking*: High ly
SCHEME RISKOMETER
de to
te
o w

Hi
ra
Low M Lo

gh

• Long Term Wealth Creation

Very

Investors understand that their

High

• An equity scheme that invests in stocks adopting innovation strategies or themes principal will be at Very High risk

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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