1
Letter to Investors of ICICI Prudential Bharat Consumption Fund – Series 1
Date: September 27, 2021
Proposed merger of ICICI Prudential Bharat Consumption Fund – Series 1 into ICICI
Prudential Bharat Consumption Fund
Dear Investor,
We thank you for your investments in ICICI Prudential Bharat Consumption Fund – Series 1 (the
Merging Scheme).
ICICI Prudential Bharat Consumption Fund – Series 1 (the Merging Scheme) with inception date
of April 11, 2018, is a close-ended equity oriented scheme that seeks 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.
ICICI Prudential Bharat Consumption Fund (Surviving Scheme) with inception date of April 12,
2019 is an open-ended equity oriented scheme which has an objective to generate long-term
capital appreciation by investing primarily in Equity and Equity related securities of companies
engaged in consumption and consumption related activities or allied sectors.
We continue on our journey of striving to bridge the gap between savings and investments to
help create long term wealth and value for our investors. The investors are requested to note that
the Board of Directors of ICICI Prudential Asset Management Company Limited (the AMC),
Investment Manager to the schemes of ICICI Prudential Mutual Fund (the Mutual Fund) and ICICI
Prudential Trust Limited (the Trustee), Trustees to the Mutual Fund have approved the merger of
ICICI Prudential Bharat Consumption Fund – Series 1 into ICICI Prudential Bharat Consumption
Fund.
Securities and Exchange Board of India has vide its communication dated September 21, 2021,
given its no-objection to the merger of ICICI Prudential Bharat Consumption Fund (Surviving
Scheme) with ICICI Prudential Bharat Consumption Fund – Series 1 (Merging Scheme).
As an investor in the Scheme, we would like to share with you the details of the proposed merger
so that you can take an appropriate and informed decision. The proposed merger will be effective
from closure of business hours of November 01, 2021.
Investors are further requested to note that the provisions pertaining to “Segregated Portfolio”
and “Writing of Covered Call Strategy” shall be applicable to the Surviving scheme with effect
from effective date of merger of ICICI Prudential Bharat Consumption Fund and ICICI Prudential
Bharat Consumption Fund – Series 1 i.e. closure of business hours of November 01, 2021. Details
of change in ICICI Prudential Bharat Consumption Fund are attached as Annexure A.
Rationale for merger of ICICI Prudential Bharat Consumption Fund – Series 1 and ICICI
Prudential Bharat Consumption Fund:
The investment objective of ICICI Prudential Bharat Consumption Fund Series – 1 (Merging Scheme)
is similar to the objective of the ICICI Prudential Bharat Consumption Fund (Surviving Scheme). ).
In order for the investors of the Merging Scheme to benefit from the prospects of the growth of
consumption sector in India, it is proposed to merge the Merging Scheme with Surviving Scheme
i.e. ICICI Prudential Bharat Consumption Fund. Further, an open-ended structure may provide
investors with an option to purchase and sale continuously at the applicable NAV giving investors
2
the opportunity to enter and exit at their discretion. It will help the investors with flexibility to extend
the holding period in order to benefit from the growth of the consumption space in India.
Growth of consumption sector in India:
India has been showing steady consumption growth for many years driven by strong socio-
demographic fundamentals like being the second largest population in the world, majority of
population in the working class category, etc. However, with Covid-19 pandemic hitting the country
in 2020, the factors driving consumption came under pressure putting hard brakes on the growth
rates.
With the economy revival in progress, India’s consumption is back on growth trajectory, supported
by the uptick in economy and other signs of recovery visible with factors like increasing GST
collections, increasing e-way bills and changes in consumer sentiments. India’s retail and
consumption sector is expected to bounce back at pre-covid levels. Below is the performance of
the Nifty India Consumption TRI Index for the last 5 Financial Years highlighting the revival of the
consumption in India.
Index Performance FY 17 FY 18 FY 19 FY 20 FY 21
Nifty India Consumption Index TRI 18.85 19.98 3.64 -14.78 52.24
The below graphical representation of the Nifty India Consumption TRI Index shows the impact of
Covid-19 on the consumption sector in March 2020 and the revival in the post-Covid period. From
Jan 01, 2020 to March 22, 2020 (pre-Covid), the index saw a fall of 26.17% whereas from March 23,
2020 to August 31, 2021, the index has seen an increase of 55.88% indicating signs of recovery.
Considering the above, it is expected that consumption in India may triple by 2030 which can benefit
the consumption sector/companies.
(Source: Boston Consulting Group’s report on Retail Resurgence in India – February 2021)
In this regard, please find below the relevant information about the Merging and Surviving
Schemes to facilitate you in taking an informed decision:
1. Portfolio of the Schemes along with their holding percentage as on August 31,
2021 is attached as Annexure B:
2. Performance of the Schemes as on August 31, 2021:
Compounded Annualised Returns (%) for last 1 year, 3 years, 5 years and since inception of the
Schemes along with the Benchmark returns:
4000
5000
6000
7000
8000
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
Oct
-20
No
v-2
0
Dec
-20
Jan
-21
Feb
-21
Mar
-21
Ap
r-2
1
May
-21
Jun
-21
Jul-
21
Au
g-2
1
Nifty India Consumption TRI
3
Scheme Name 1
Year
3
Years
5
Years
Since
Inception
Inception
Date
ICICI Prudential Bharat
Consumption Fund - Series 1 47.68 13.94 - 13.29 11-Apr-18
Nifty India Consumption TRI
(Benchmark) 38.57 9.97 - 12.02
ICICI Prudential Bharat
Consumption Fund 33.14 - - 13.38 12-Apr-19
Nifty India Consumption TRI
(Benchmark) 38.57 - - 17.11
*Less than 1 year Simple Annualized returns, Greater than 1 year Compound Annualized returns.
Annual Returns (%) for last 5 financial years
Scheme/Benchmark FY 20-
21 FY 19-
20 FY 18-
19 FY 17-
18 FY 16-
17
ICICI Prudential Bharat Consumption Fund - Series 1
60.00 -19.92 - - -
Nifty India Consumption TRI 47.78 -14.88 - - -
ICICI Prudential Bharat Consumption Fund 42.50 - - - -
Nifty India Consumption TRI 47.78 - - - -
Graphical presentation of the annualized performance:
ICICI Prudential Bharat Consumption Fund – Series 1:
ICICI Prudential Bharat Consumption Fund:
FY 20-21 FY 19-20 FY 18-19 FY 17-18 FY 16-17
ICICI Prudential BharatConsumption Fund - Series 1
60.00 -19.92 0.00 0.00 0.00
Nifty India Consumption TRI 47.78 -14.88 0.00 0.00 0.00
-30.00-20.00-10.00
0.0010.0020.0030.0040.0050.0060.0070.00
Re
turn
(%
)
4
Notes:
*Less than 1 year Simple Annualized returns, Greater than 1 year Compound Annualized
returns
In case the start/end date of the concerned period is a non-business date (NBD), the NAV
of the previous date is considered for computation of returns. The NAV per unit shown in
the table is as on the start date of the said period.
Past performance may or may not be sustained in future and the same may not
necessarily provide the basis for comparison with other investment.
Different plans shall have different expense structure. The performance details provided
herein are of the Plans mentioned above.
Load is not considered for computation of returns.
For computation of since inception returns the allotment NAV has been taken as Rs. 10.
3. Investment Objective, Asset Allocation, Investment Strategy and main features of
the Surviving scheme:
The merger will not result in the emergence of any new scheme as ICICI Prudential Bharat
Consumption Fund – Series 1 will be merged in the Surviving Scheme, viz. ICICI Prudential Bharat
Consumption Fund. The tenure of the Merging Scheme is 1300 days from allotment date. Post-
merger, the investments under the Surviving Scheme will be in accordance with the investment
objective and asset allocation of the Surviving Scheme. The features of Merging and Surviving
Scheme are stated below for easy reference of the investors:
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
Type of the
Scheme
An Open Ended Equity Scheme following
Consumption theme.
A Close Ended Equity Scheme following
Consumption Theme
Investment
Objective
To generate long-term capital appreciation by
investing primarily in Equity and Equity related
securities of companies engaged in
consumption and consumption related
activities or allied sectors.
However, there can be no assurance or
guarantee that the investment objective of the
scheme would be achieved.
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 can be no assurance or
guarantee that the investment objective of the
Scheme would be achieved.
Asset
Allocation
Type of
Security
Indicative allocation (%
of total assets)
Risk
Profile
Instruments
Indicative allocations
(% of total assets)
Risk
Profile
FY 20-21 FY 19-20 FY 18-19 FY 17-18 FY 16-17
ICICI Prudential BharatConsumption Fund
42.50 0.00 0.00 0.00 0.00
Nifty India Consumption TRI 47.78 0.00 0.00 0.00 0.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Re
turn
(%
)
5
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
Maximum Minimum
Equity and
Equity
Related
Instruments
of companies
engaged in
consumption
and
consumption
related
activities or
allied
sectors*
100 80 High
Other equity
and equity
related
securities
20 0 Mediu
m to
High
Debt, Units of
debt Mutual
Fund
schemes and
Money
market
instruments
20 0 Mediu
m to
Low
Gold/Gold
ETF/Units
issued by
REITs/ InvITs
such other
asset classes
as may be
permitted by
SEBI from
time to time
(subject to
applicable
SEBI limits)
20 0 Mediu
m to
High
*Indicative list of sectors/industries falling
under consumption and consumption related
activities or allied sectors are as follows:
1. Automobile including auto components
companies,
2. Consumer Goods including consumer
durables, consumer non-durables, retailing
etc.
3. Energy,
4. Healthcare Services,
5. Media & Entertainment,
6. Pharma,
7. Services such as Commercial and
Engineering Services, Hotels Resorts and
Recreational Activities, Transportation,
Trading, etc.
8. Telecom,
9. Textiles
Maximum Minimum
Equity and
Equity
Related
Instruments
of companies
that could
benefit from
consumption
and related
activities and
are part of
sectors in the
benchmark
index
100% 80% High
Equity and
Equity
related
instruments
of companies
other than
the ones that
could benefit
from
consumption
and related
activities
20% 0% Medium
to High
Debt and
Money
Market
Instruments
20% 0% Low to
Medium
The Scheme may also take exposure to:
Derivative instruments upto 50% of the Net
assets of the Scheme. The Scheme may
invest in derivatives to engage in permitted
currency hedging transactions with an
intention to reduce exchange rate
fluctuations between the currency of the
Scheme (INR) and the foreign currency
exposure.
ADRs/ GDRs/ Foreign Securities/ Overseas
ETFs upto 50% of Net assets of the Scheme.
Investment in Foreign Securities shall be in
compliance with requirement of SEBI Circular
dated September 26, 2007 and other
applicable regulatory guidelines
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.
The Scheme can invest in debt / money market
instruments, having residual maturity upto the
residual maturity of the Scheme.
6
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
Please note that the above list is indicative and
the Fund Manager may add such other
sector/industries which satisfy the
consumption theme. The Fund Manager may
also add other sectors as may be added in Nifty
Consumption Index from time to time.
The Scheme may also take exposure to:
Derivative instruments upto 100% of the net
assets. Derivatives includes Index futures,
stock futures, Index Options and Stock
Options & such other derivative instruments
as permitted by SEBI from time to time.
ADR/GDR/ Foreign Securities to the extent
of 50% of net assets. Investment in
ADR/GDR/Foreign Securities would be as
per SEBI Circular dated September 26, 2007
and SEBI/IMD/CIR No. 122577/08 dated
April 8, 2008 and SEBI circular no.
SEBI/HO/IMD/DF3/CIR/P/2020/225 dated
November 5, 2020, as may be amended
from time to time.
Securitised debt upto 50% of debt portfolio
Stock lending up to 20% of net assets.
The Cumulative Gross Exposure across Equity,
Debt, Derivatives, Gold, REITs and INVITs and
ADR/GDR/foreign securities and such other
securities/assets as may be permitted by the
Board from time to time should not exceed
100% of the net assets of the scheme.
The Margin may be placed in the form of such
securities / instruments / deposits as may be
permitted/eligible to be placed as margin from
the assets of the Scheme. The securities /
instruments / deposits so placed as margin
shall be classified under the applicable
category of assets for the purposes of asset
allocation.
The Scheme will not engage in short selling
and repos in corporate bonds.
In the event of any deviation from the asset
allocation stated above, the Fund Manager
shall rebalance the portfolio within 30 days
from the date of such deviation. If owing to
adverse market conditions or with the view to
protect the interest of the investors, the fund
manager is not able to rebalance the asset
allocation within the above mentioned period
The Cumulative Gross Exposure to Equity, Debt
and Derivatives Positions will not exceed 100%
of the Net Assets of the Scheme.
The Scheme may invest in other schemes
managed by the AMC or in the schemes of any
other Mutual Funds, provided it is in conformity
with the investment objective of the Scheme
and in terms of the prevailing Regulations. As
per the Regulations, no investment
management fees will be charged for such
investments and the aggregate inter-scheme
investment made by all Schemes of the Fund or
in Schemes under the management of other
asset management companies shall not exceed
5% of the Net Asset Value of the Mutual Fund.
The Scheme does not intend to undertake/
invest/ engage in:
Repos in corporate debt securities
Short selling of securities
Credit default swaps
Equity Linked Debentures
Change in Investment Pattern
Subject to the Regulations, the asset allocation
pattern indicated above may change from time
to time keeping in view market conditions and
investment opportunities, applicable regulations
and political and economic factors.
In the event of asset allocation falling outside the
limits specified in the asset allocation table, the
fund manager will rebalance the same within 30
days. Though every endeavor will be made to
achieve the objectives of the Scheme, the
AMC/Sponsors/Trustee do not assure or
guarantee that the investment objectives of the
Scheme would be achieved.
If owing to adverse market conditions or with
the view to protect the interest of the investors,
the fund manager is not able to rebalance the
asset allocation within the above mentioned
period of 30 days, the same shall be reported to
the Internal Investment Committee. The Internal
Investment Committee shall then decide the
further course of action.
Provided further and subject to the above, any
change in the asset allocation affecting the
investment profile of the Scheme shall be
effected only in accordance with the provisions
7
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
of 30 days, the same shall be reported to the
Internal Investment Committee and reasons
for the same shall be recorded in writing. The
internal investment committee shall then
decide on the future course of action.
It may be noted that no prior
intimation/indication would be given to
investors when the composition/asset
allocation pattern under the scheme undergo
changes within the permitted band as
indicated above or for changes due to
defensive positioning of the portfolio with a
view to protect the interest of the unit holders
on a temporary basis. The investors/unit
holders can ascertain details of asset allocation
of the scheme as on the last date of each
month on AMC’s website at
www.icicipruamc.com that will display the
asset allocation of the scheme as on the given
day.
Considering the inherent characteristics of the
Scheme, equity positions would have to built-
up gradually and also sold off gradually. This
would necessarily entail having large cash
position before the portfolio is fully invested
and during periods when equity positions are
being sold off to book profits/losses or to meet
redemption needs.
Investors may note that securities, which
endeavor to provide higher returns typically,
display higher volatility. Accordingly, the
investment portfolio of the Scheme would
reflect moderate to high volatility in its equity
and equity related investments and low to
moderate volatility in its debt and money
market investments.
The securities mentioned in the asset
allocation pattern could be privately placed or
unsecured. The securities may be acquired
through secondary market purchases, Initial
Public Offering (IPO), other public offers,
Private Placement, right offers (including
renunciation) and negotiated deals.
Change in Investment Pattern
Subject to the Regulations, the asset allocation
pattern indicated above may change from time
to time, keeping in view market conditions,
market opportunities, applicable regulations
and political and economic factors. Though
every endeavor will be made to achieve the
of sub regulation (15A) of Regulation 18 of the
Regulations, as detailed later in this document.
8
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
objectives of the Scheme, the
AMC/Sponsors/Trustee do not guarantee that
the investment objectives of the Scheme will
be achieved.
Provided further and subject to the above, any
change in the asset allocation affecting the
investment profile of the Scheme shall be
effected only in accordance with the
provisions of sub regulation (15A) of
Regulation 18 of the Regulations, as detailed
later in this document.
Investment
Strategy
India is the second most populated country in
the world with over one billion population. And
it is set to reap what is now famously called the
demographic dividend; its working age
population being larger than the population
that is dependent on it. India’s 65% population
is below 35 years of age (Census 2011). With
Western Europe, the US, South Korea, Japan
and even China’s aging population, India could
reap the reward of demographic dividend. IMF
has stated in its report that India could add a
significant pace to its GDP growth rate due to
demographic dividend.
India hit ten-year high and stood first among
the 63 nations surveyed in the global consumer
confidence index with a score of 136 points for
the quarter ending December 2016.
Global corporations view India as one of the
key markets from where future growth is likely
to emerge. The growth in India’s consumer
market would be primarily driven by a
favourable population composition and
increasing disposable incomes.
India’s robust economic growth and rising
household incomes are expected to increase
consumer spending to US$ 4 trillion by 2025.
By 2025, India would rise from the 12th to the
5th largest position in the consumer durables
market in the world. The consumer durables
market in India is expected to reach US$ 20.6
billion by 2020. 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.
Source: Boston Consulting Group (BCG) – “The
New Indian: The Many Facets of a Changing
Consumer”
India is the second most populated country in
the world with a population of over one billion.
And it is set to reap what is now famously called
the demographic dividend; its working age
population being larger than the population that
is dependent on it. 65% of the population in
India is below 35 years of age (Census 2011).
With Western Europe, the US, South Korea,
Japan and even China’s aging population, India
could reap the reward of demographic dividend.
IMF has stated in its report that India could add
a significant pace to its GDP growth rate due to
demographic dividend.
India hit ten-year high and stood first among the
63 nations surveyed in the global consumer
confidence index with a score of 136 points for
the quarter ending December 2016.
Global corporations view India as one of the key
markets from where future growth is likely to
emerge. The growth in India’s consumer market
would be primarily driven by a favourable
population composition and increasing
disposable incomes.
India’s robust economic growth and rising
household incomes are expected to increase
consumer spending to US$ 4 trillion by 2025.
By 2025, India could rise from the 12th to the 5th
largest position in the consumer durables
market in the world. The consumer durables
market in India is expected to reach US$ 20.6
billion by 2020. 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.
Rising Income can be one of the key drivers for
growth in consumption in India over long term.
Of India’s five household income categories
(elite, affluent, aspirers, next billion, and
9
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
ICICI Prudential Bharat Consumption Fund will
aim to capture this change in spending pattern.
The Scheme intends to invest predominantly in
Equities and Equity Related Securities of
companies that are likely to benefit directly or
indirectly from consumption and related
activities or allied sectors. These companies
may directly or indirectly benefit from increase
in consumption led demand.
Indicative list of sectors/industry falling under
consumption and consumption related
activities are as follows:
1. Automobile including auto components
companies,
2. Consumer Goods including consumer
durables, consumer non-durables, retailing
etc.
3. Energy,
4. Healthcare Services,
5. Media & Entertainment,
6. Pharma,
7. Services such as Commercial and
Engineering Services, Hotels Resorts and
Recreational Activities, Transportation,
Trading etc.
8. Telecom,
9. Textiles
Please note that the above list is indicative and
the Fund Manager may add such other
sector/industries which satisfy the
consumption theme. The Fund Manager may
also add other sectors as may be added in Nifty
Consumption Index from time to time.
The Scheme will predominantly invest in
companies, which, in the opinion of the Fund
Manager, offer an attractive investment
opportunity to participate in the growth of the
Consumption sector.
The scheme can also invest in equity & equity
related securities of other companies.
The scheme will follow a blend approach, a
combination of value and growth, to build the
portfolio. The scheme intends to invest in
stocks across large cap, midcap, small cap.
As and when the fund manager is of the view
that a specific investment has met its desired
objective and the investment is liquidated, the
proceeds may be distributed by way of
strugglers), the top two income classes are the
fastest growing. It is expected that, by 2025, the
share of elite and affluent households will
increase from 8% to 16% of the total while the
share of strugglers will drop from 31% to 18%.
Source: Boston Consulting Group (BCG) – “The
New Indian: The Many Facets of a Changing
Consumer” dated March 20, 2017.
ICICI Prudential Bharat Consumption Fund –
Series 1 will aim to capture this change in
spending pattern.
The Scheme intends to invest predominantly in
Equities and Equity Related Securities of
companies that are likely to benefit directly or
indirectly from consumption and related
activities. Such companies may directly or
indirectly benefit from increase in consumption
led demand. Illustrative list of such sectors is as
under.
1. Consumer Durables
2. Consumer Non-Durables
3. Healthcare
4. Pharmaceuticals
5. Auto
6. Auto Ancillaries
7. Telecom
8. Services
9. Media & Entertainment
10. Aviation
11. Textiles
12. Fertilisers and Pesticides
13. Retailing
Sectors mentioned above are indicative in
nature and the Fund Manager may invest in
sectors other than these that may benefit
directly or indirectly from consumption and
related activities.
The scheme will be following a blend approach,
a combination of value and growth, to build the
portfolio. The scheme intends to invest in stocks
across large cap, midcap, small cap.
As and when the fund manager is of the view
that a specific investment has met its desired
objective and the investment is liquidated, the
proceeds may be distributed by way of
dividend, subject to the availability of
distributable surplus.
10
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
dividend, subject to the availability of
distributable surplus.
The Scheme may use derivative instruments
like Interest Rate Swaps, Interest Rate Futures,
Forward Rate Agreements Stock / Index
Futures or Options or other instruments for the
purpose of hedging, portfolio balancing and
other purposes, as permitted under the
Regulations. Hedging using Interest Rate
Futures could be perfect or imperfect, subject
to applicable regulations. Usage of derivatives
may expose the Scheme to certain risks
inherent to such derivatives. It may also invest
in securitized debt.
The Scheme may invest in other schemes
managed by the AMC or in the schemes of any
other Mutual Funds, provided it is in
conformity with the investment objective of the
Scheme and in terms of the prevailing
Regulations. As per the Regulations, no
investment management fees will be charged
for such investments. As per the SEBI
Regulations, such inter scheme investments
shall not exceed 5% of the Net Asset Value of
the Fund.
At present, the Scheme does not intend to
enter into underwriting obligations. However, if
the Scheme does enter into an underwriting
agreement, it would do so after complying with
the Regulations and with the prior approval of
the Board of the AMC/Trustee.
The Scheme may also invest in depository
receipts including American Depository
Receipts (ADRs), Global Depository Receipts
(GDRs) and foreign securities.
The Scheme may also invest in debt and
money market instruments, in compliance with
Regulations.
The Scheme may invest in derivatives to
engage in permitted currency hedging
transactions with an intention to reduce
exchange rate fluctuations between the
currency of the Scheme (INR) and the foreign
currency exposure.
Fixed Income securities
The Scheme may also invest in Debt and
Money Market Securities/Instruments (Money
Market securities include cash and cash
The Scheme may also use various derivatives
and hedging products from time to time, as
would be available and permitted by SEBI, in an
attempt to protect the value of the portfolio and
enhance Unit holders’ interest.
The Scheme may invest in other schemes
managed by the AMC or in the schemes of any
other Mutual Funds, provided it is in conformity
with the investment objective of the Scheme
and in terms of the prevailing Regulations. As
per the Regulations, no investment
management fees will be charged for such
investments and the aggregate inter-scheme
investment made by all Schemes of the Fund or
in Schemes under the management of other
asset management companies shall not exceed
5% of the Net Asset Value of the Mutual Fund.
At present, the Scheme does not intend to enter
into underwriting obligations. However, if the
Scheme does enter into an underwriting
agreement, it would do so after complying with
the Regulations and with the prior approval of
the Board of the AMC/Trustee.
The Scheme may also invest in depository
receipts including American Depository
Receipts (ADRs) and Global Depository Receipts
(GDRs).
The Scheme may also invest in debt and money
market instruments, in compliance with
Regulations.
The Scheme may invest in derivatives to engage
in permitted currency hedging transactions with
an intention to reduce exchange rate
fluctuations between the currency of the
Scheme (INR) and the foreign currency
exposure.
Portfolio Turnover
Portfolio turnover is defined as the lower of
purchases and sales divided by the average
assets under management of the Scheme
during a specified period of time.
The AMC’s portfolio management style is
conducive to a low portfolio turnover rate.
However, the AMC will take advantage of the
opportunities that present themselves from time
to time because of the inefficiencies in the
securities markets. The AMC will endeavour to
balance the increased cost on account of higher
11
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
equivalents). The Scheme aims to identify
securities which offer optimal level of
yields/returns, considering risk-reward ratio.
With the aim of controlling risks rigorous in
depth credit evaluation of the securities
proposed to be invested in will be carried out
by the Risk Management Team of the AMC.
The credit evaluation includes a study of the
operating environment of the issuer, the short
as well as long-term financial health of the
issuer. Rated debt instruments in which the
Scheme invests will be of investment grade as
rated by a credit rating agency. The AMC may
consider the ratings of such Rating Agencies as
approved by SEBI to carry out the functioning
of rating agencies. The Scheme may invest in
securitised debt.
In addition, the investment team of the AMC
will study the macro economic conditions,
including the political, economic environment
and factors affecting liquidity and interest rates.
The AMC would use this analysis to attempt to
predict the likely direction of interest rates and
position the portfolio appropriately to take
advantage of the same.
Further, the Scheme may invest in other
schemes managed by the AMC or in the
schemes of any other Mutual Funds in terms of
the prevailing Regulations. As per the
Regulations, no investment management fees
will be charged for such investments.
For the present, the Scheme does not intend to
enter into underwriting obligations. However, if
the Scheme does enter into an underwriting
agreement, it would do so after complying with
the Regulations and with the prior approval of
the Board of the AMC/Trustee.
Portfolio Turnover
Portfolio turnover is defined as the lower of
purchases and sales after reducing all
subscriptions and redemptions transactions
there from and calculated as a percentage of
the average assets under management of the
Scheme during a specified period of time.
Given that the Scheme is an open ended
Scheme, it is expected that there would be a
number of subscriptions and redemptions on a
daily basis. Also, portfolio turnover would be
impacted by investment strategy of the
scheme. Hence, it is difficult to estimate with
any reasonable measure of accuracy, the likely
turnover in the portfolio.
portfolio turnover with the benefits derived
there from.
12
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
The AMC’s portfolio management style is
conducive to a low portfolio turnover rate.
However, the AMC will take advantage of the
opportunities that present themselves from
time to time because of the inefficiencies in the
securities markets. The AMC will endeavour to
balance the increased cost on account of
higher portfolio turnover with the benefits
derived there from.
Plans/
Options
under the
Scheme
Plans ICICI Prudential
Bharat Consumption
Fund - Direct Plan
and ICICI Prudential
Bharat Consumption
Fund
Options/
sub-
options
Growth Options and
IDCW Option with
IDCW Payout and
IDCW Reinvestment
sub-options
Default
Option
Growth Option
Default
sub-option
IDCW Reinvestment
Plans ICICI Prudential
Bharat Consumption
Fund – Series 1
Direct Plan and ICICI
Prudential Bharat
Consumption Fund –
Series 1
Options/
sub-
options
Cumulative Option
and IDCW Option
with IDCW Payout
and IDCW Transfer
facility
Default
Option
Cumulative Option
Exit Loads
under the
Scheme*
1% of applicable Net Asset Value - If the
amount sought to be redeemed or switch
out is invested for a period of up to three
months from the date of allotment
Nil - If the amount, sought to be redeemed
or switch out is invested for a period of
more than three months from the date of
allotment
The Trustees shall have a right to prescribe or
modify the exit load structure with prospective
effect subject to a maximum prescribed under
the Regulations.
Being a listed scheme, no exit load will be
applicable.
Name of
Fund
Manager
Mr. Parag Thakkar
In addition to the above fund managers
managing this fund, overseas investment is
managed by Ms. Priyanka Khandelwal.
Mr. Anish Tawaklay and Mr. Lalit Kumar
In addition to the above fund managers
managing this fund, overseas investment is
managed by Ms. Priyanka Khandelwal.
Total
Expense
Ratio (TER)
The maximum recurring expenses that can be
charged to the Scheme shall be subject to a
percentage limit of daily net assets as shown
in the following table:
Net Assets Percentage of TER
First Rs. 500
crore
2.25%
Next Rs. 250
crore
2.00%
Next Rs.
1,250 crore
1.75%
The maximum recurring expenses that can be
charged to the Scheme shall be subject to a
percentage limit of daily net assets as shown in
the following table:
Net Assets Percentage of TER
On the entire
net assets
1.25%
In addition to the above, Goods and Services
Tax (GST) can be charged on the investment
management and advisory fees.
13
Provisions ICICI Prudential Bharat Consumption
Fund
ICICI Prudential Bharat Consumption
Fund – Series 1
Next Rs.
3,000 crore
1.60%
Next Rs.
5,000 crore
1.50%
Next Rs.
40,000 crore
TER reduction of
0.05% for every
increase of Rs.
5,000 crore of daily
net assets or part
thereof
Balance 1.05%
In addition to the above, following expenses
can be charged to the Scheme:
a) Up to 5 basis points (bps) under Regulation
52(6A)(c ),
b) Up to 30 bps for gross new inflows from
retail investors from B30 cities, and
c) Goods and Services Tax (GST) on
investment management and advisory fees.
TER as of August 31, 2021: Regular Plan –
2.53%
Direct Plan – 1.09%
TER as of August 31, 2021: Regular Plan – 1.41%
Direct Plan – 1.11%
• IDCW = Income Distribution cum capital withdrawal option
• IDCW Payout = Payout of Income Distribution cum capital withdrawal option
• IDCW Reinvestment = Reinvestment of Income Distribution cum capital withdrawal option
• IDCW Transfer = Transfer of Income Distribution cum capital withdrawal plan
Risk Factors pertaining to REITS/INVITS and Gold and Gold ETFs are as follows:
Risk Factors Associated with Investments in REITs and InvITS:
Market Risk:
REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market
movements. Investors may note that AMC/Fund Manager’s investment decisions may not
always be profitable, as actual market movements may be at variance with the anticipated
trends. The NAV of the Scheme is vulnerable to movements in the prices of securities invested
by the scheme, due to various market related factors like changes in the general market
conditions, factors and forces affecting capital market, level of interest rates, trading volumes,
Real Estate and Infrastructure sectors, settlement periods and transfer procedures. The scheme
will undertake active portfolio management as per the investment objective to reduce the
marker risk.
Liquidity Risk:
As the liquidity of the investments made by the Scheme(s) could, at times, be restricted by
trading volumes and settlement periods, the time taken by the Mutual Fund for liquidating the
investments in the scheme may be high in the event of immediate redemption requirement.
Investment in such securities may lead to increase in the scheme portfolio risk. The fund will
try to maintain a proper asset-liability match to ensure redemption payments are made on time
and not affected by illiquidity of the underlying units.
Reinvestment Risk:
14
Investments in REITs & InvITs may carry reinvestment risk as there could be repatriation of
funds by the Trusts in form of buyback of units or dividend pay-outs, etc. Consequently, the
proceeds may get invested in assets providing lower returns. However, the reinvestment risk
will be limited as the proceeds are expected to be a small portion of the portfolio value.
Interest Rate Risk: Securities / Instruments of REITs and InvITs run interest rate risk. Generally,
when interest rates rise, prices of units fall and when interest rates drop, such prices increase.
The above are some of the common risks associated with investments in REITs & InvITs. There
can be no assurance that a Scheme's investment objectives will be achieved, or that there will
be no loss of capital. Investment results may vary substantially on a monthly, quarterly or
annual basis.
Risk associated with investments in Gold and Gold ETF’s:
The scheme would invest in Gold and Gold linked instruments. Accordingly the NAV of the
scheme will react to Gold price movements.
Several factors that may affect the price of gold are as follows:
- Global gold supplies and demand, which is influenced by factors such as forward selling
by gold producers, purchases made by gold producers to unwind gold hedge positions,
central bank purchases and sales, productions and cost levels in major gold producing
countries such as the South Africa, the United States and Australia.
- Investors’ expectations with respect to the rate of inflation
- Currency exchange rates
- Interest rates
- Investment and trading activities of hedge funds and commodity funds
- Global or regional political, economic or financial events and situations
- Changes in indirect taxes or any other levies
Investors should be aware that there is no assurance that gold will maintain its long-term
value in terms of purchasing power in the future. In the event that the price of gold declines,
the value of investment is expected to decline proportionately.
The returns from physical gold in which the scheme invests may underperform returns from
the various general securities markets or different asset classes other than gold. Different
types of securities tend to go through cycles of out-performance and under-performance
in comparison to the general securities markets.
The scheme may invest in Gold ETFs. The units may trade above or below their NAV. The
NAV of the Scheme will fluctuate with changes in the market value of the holdings. The
trading prices will fluctuate in accordance with changes in their NAV as well as market
supply and demand. However, given that units can be created and redeemed in Creation
Units, it is expected that large discounts or premiums to the NAV will not sustain due to
arbitrage opportunity available.
Gold ETFs are relatively new product and their value could decrease if unanticipated
operational or trading problems arise.
In case of investment in Gold ETFs, the scheme will subscribe to the units of Gold ETFs
according to the value equivalent to unit creation size as applicable. When subscriptions
received are not adequate enough to invest in creation unit size, the subscriptions may be
deployed in debt and money market instruments which will have a different return profile
compared to gold returns profile.
15
Provisions pertaining to “Segregated Portfolio” and “Writing of Covered Call Strategy” shall be
applicable to the Surviving scheme with effect from effective date of merger of ICICI Prudential
Bharat Consumption Fund and ICICI Prudential Bharat Consumption Fund – Series 1. Details of
the changes in ICICI Prudential Bharat Consumption Fund can be referred in Annexure A.
For complete details on the Surviving Scheme, investors are requested to refer to SID of the
Scheme available on the website.
1. Impact of the merger with respect to allocation of units to the unitholders of the
Merging Scheme
*Unitholders of the Merging Scheme are requested to note that the provisions of exit load of the
Surviving Scheme will not be applicable in respect of the units of the Surviving Scheme which
are allotted to them upon merger of the schemes.
On the effective date of the merger of schemes, the Merging Scheme will cease to exist and
the unit holders of Merging Scheme as at the close of business hours will be allotted units
under the corresponding option of the Surviving Scheme at the last available applicable Net
Asset Value (“NAV”) on the effective date. For example:
Activity Investment
Value (in Rs.)
At NAV No. of
Units
Value of holdings in ICICI Prudential Bharat
Consumption Fund – Series 1 Cummulative
Option (on August 31, 2021)
117,700.00 11.77 10,000.00
ICICI Prudential Bharat Consumption Fund –
Growth Option on date of merger (August
31, 2021)
174.59
Fresh allotment to investor (in ICICI
Prudential Bharat Consumption Fund –
Growth Option)
117,700.00 174.59 674.15
(Dates and Figures are only for illustrative purposes)
In case of any pledge/ lien/ other encumbrance marked on any units in the Merging Scheme,
the same shall be marked on the corresponding number of units allotted in the Surviving
Scheme.
Securities Transaction Tax (STT) on extinguishment of units under Merging Scheme and
allotment under the Surviving Scheme upon merger of schemes, shall not be levied.
In case of Non Resident Indians, tax, if any at applicable rates, shall be deducted by ICICI
Prudential Mutual Fund/ the AMC.
Plan/option wise allocation of units will be as follows:
Holding in Plan and option under the
Merging Scheme
Allocation in Plan and option under
the Surviving Scheme
ICICI Prudential Bharat Consumption –
Series 1 – Cumulative
ICICI Prudential Bharat Consumption
Fund – Growth
ICICI Prudential Bharat Consumption –
Series 1 – IDCW – payout
ICICI Prudential Bharat Consumption
Fund – IDCW
ICICI Prudential Bharat Consumption –
Series 1 – Direct Plan – Cumulative
ICICI Prudential Bharat Consumption
Fund – Direct Plan – Growth
ICICI Prudential Bharat Consumption –
Series 1 – Direct Plan – IDCW - payout
ICICI Prudential Bharat Consumption
Fund – Direct Plan – IDCW
16
If the investor of the ICICI Prudential Bharat Consumption Fund – Series 1 (merging scheme)
does not hold any existing investments in ICICI Prudential Bharat Consumption Fund (surviving
scheme) then the IDCW option would be IDCW payout sub-option. If the investor has existing
investments in ICICI Prudential Bharat Consumption Fund, the current IDCW option (i.e. either
IDCW payout or IDCW re-investment) as selected in the folio would continue.
Systematic registration like Dividend Transfer Plan in the Merging Scheme will be ceased on
merger.
2. Impact of the merger with respect to allocation of units to the unitholders of the
Surviving Scheme
The merger will not result in the emergence of any new scheme as ICICI Prudential Bharat
Consumption Fund – Series 1 will be merged in the Surviving Scheme, viz. ICICI Prudential
Bharat Consumption Fund. Post-merger, the investments under the Surviving Scheme will be
in accordance with the investment objective and asset allocation of the Surviving Scheme.
There will be no impact of the merger on the units held by the unitholders of the Surviving
Scheme.
3. Percentage of total Non-performing Assets (NPAs) and total illiquid assets in the
Merging Scheme and the Surviving Scheme: NIL
4. Tax impact on consolidation of Schemes:
The following provisions would apply in case of consolidation of mutual fund schemes.
As per section 47(xviii) of Income Tax Act, 1961 (the Act), any transfer of units held by the
investor in the consolidating scheme of the mutual fund in consideration of allotment of units
in the consolidated scheme, shall not to be regarded as a taxable transfer, provided that the
consolidation is of two or more schemes of an equity oriented fund or two or more schemes
of a fund other than equity oriented fund.
Further, as per section 49(2AD) of the Act, the cost of acquisition of units in the consolidated
scheme shall be deemed to be the cost of acquisition of the units in the consolidating scheme.
Also, as per section 2(42A) of the Act, the period of holding of the units in the consolidated
scheme shall include the period of holding of the units in the consolidating scheme.
‘Consolidating scheme’ has been defined under section 47(xviii) of the Act as the scheme of a
Mutual Fund which merges under the process of consolidation of the schemes of mutual fund
in accordance with the SEBI (Mutual Funds) Regulations, 1996. ‘Consolidated scheme’ has
been defined as the scheme with which the consolidating scheme merges or which is formed
as a result of such merger.
Securities Transaction Tax (STT) on extinguishment of units under Merging Scheme and
allotment under the Surviving Scheme upon merger of schemes, shall not be levied.
Stamp Duty on allotment under the Surviving Scheme upon merger of schemes, shall not be
levied.
In case of Non Resident Indians, tax, if any at applicable rates, shall be deducted by ICICI
Prudential Mutual Fund/ the AMC.
5. Exit Option under the Scheme:
As per Circular No. SEBI/ MFD/Cir No. 05/12031/03 dated June 23, 2003 issued by SEBI, merger
of schemes is considered as a change in fundamental attributes of the concerned schemes
necessitating compliance with the requirements laid down for change in fundamental
attributes. As per Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996, changes in
17
fundamental attributes can be carried out only after the unit holders of the schemes concerned
have been informed of the change via written communication and an option to exit the
scheme(s) within a period of 30 days at the prevailing NAV without any exit load is provided
to them. Accordingly, this Notice provides communication to the unit holders of ICICI
Prudential Bharat Consumption Fund – Series 1 for the merger of ICICI Prudential Bharat
Consumption Fund – Series 1 (Merging Scheme) into ICICI Prudential Bharat Consumption
Fund (Surviving Scheme).
Exit Option for Unitholders of ICICI Prudential Bharat Consumption Fund – Series
1 (Merging Scheme) for proposed merger:
In accordance with Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 the
existing unitholders of the Merging Scheme (i.e. whose names appear in the register of
unitholders as on close of business hours on September 24, 2021) are hereby given an option
to exit, i.e. either redeem their investments or switch their investments to any other schemes
of ICICI Prudential Mutual Fund, within the Exit Option Period (minimum 30 days) starting from
October 01, 2021 till November 01, 2021 (both days inclusive and up to 3.00 pm on November
01, 202). If the units are held in dematerialized form, investors are requested to contact their
Depository Participant and rematerialize their units before placing redemption or switch
request. Unitholders of the Merging Scheme who do not exercise the exit option by 3.00 pm
on November 01, 2021 would be deemed to have consented to the proposed merger. It may
also be noted that no action is required in case the Unitholders of the Merging Scheme are in
agreement with the proposed merger, which shall be deemed as consent being given by them
for the proposed merger. Kindly note that an offer to exit is merely optional and is not
compulsory.
All the valid applications for redemptions/switch received under the ICICI Prudential Bharat
Consumption Fund – Series 1 shall be processed at Applicable NAV as on November 01, 2021
and the redemption proceeds shall be remitted/ dispatched to those Unitholders of the
Merging Scheme within 10 (ten) working days from November 01, 2021.
Further, investors are requested to note that post effective date of the merger i.e. closure of
business hours of November 01, 2021, the Merging Scheme shall not be available for trading
on the stock exchange.
For list of Official Points of Acceptance, please visit our website. The Exit Option can be
exercised during the Exit Option Period by submitting a valid redemption/switch request at
any Official Point of Acceptance of the Fund. A separate written communication is being sent
to the existing Unit holders of the Merging Scheme and Surviving Scheme in this regard. In
case any existing Unit holder of the Merging Scheme and Surviving Scheme has not received
an Exit Option Letter, they are advised to contact any of our Investor Service Centres
You can switch or redeem your investments using the following options:
Download IPRUTOUCH
Login to Invest now
Visit your nearest ICICI Prudential Mutual Fund or CAMS branch.
Unitholders of Merging Scheme who have pledged or encumbered their units will not have
the option to exit unless they procure a release of their pledges/encumbrances prior to the
submission of redemption requests. Unitholders should ensure that their change in address or
bank details are updated in records of ICICI Prudential Mutual Fund as required by them, prior
to exercising the exit option for redemption of units. Unit holders holding Units in
dematerialized form may approach their Depository Participant for such changes. In case units
have been frozen/locked pursuant to an order of a government authority or a court, such exit
option can be executed only after the freeze/lock order is vacated/receipt of valid redemption
request to those unitholders who choose to exercise their exit option. Redemption/switch of
units from the scheme, during the exit option period, may entail capital gain/loss in the hands
of the unitholder. Similarly, in case of NRI investors, TDS shall be deducted in accordance with
18
the applicable Tax laws, upon exercise of exit option and the same would be required to be
borne by such investor only. In view of individual nature of tax implications, unitholders are
advised to consult their tax advisors. It may be noted that the redemption/switch transactions
shall not be processed if the unit holders have not completed KYC requirements.
In case you require any further assistance or clarification, (1) you can get in touch with your
Mutual Fund Distributor OR (2) write to us at [email protected] OR (3) contact on our
customer care helplines 1800 222 999(from MTNL/BSNL) and 1800 200 6666 (Others) between
8 am and 8 PM, Monday to Saturday and between 9 am to 7 PM on Sunday.
6. Unclaimed dividends and redemptions:
In view of the decision to transfer the balance remaining unclaimed on account of dividends in
the accounts from ICICI Prudential Bharat Consumption Fund – Series 1 to ICICI Prudential ICICI
Prudential Bharat Consumption Fund, set out are the details of the unclaimed dividend and
redemption amounts in ICICI Prudential Bharat Consumption Fund – Series 1 as on August 31,
2021.
Name of the Scheme Unclaimed Dividend
(Amount in `)
Unclaimed Redemption
(Amount in `)
ICICI Prudential Bharat
Consumption Fund – Series 1
Nil Nil
ICICI Prudential Bharat
Consumption Fund
Nil 0.11 crores
The request for reissue/ revalidation of instruments towards unclaimed redemption / dividend
should be made by the unit holder to Computer Age Management Services Limited (CAMS), the
registrar to the schemes of ICICI Prudential Mutual Fund, or to the nearest branch of the AMC.
We hope that you will provide us your support; in case of any queries you can reach our call
centre. We assure you that these changes are in line with our best endeavors to serve you better.
Also in relation to unclaimed dividend/redemption, we request you to kindly contact us at any of
Investor Service Centre/Official Point of Acceptance of the Fund, to assist you in the payment of
unclaimed amount. The list of Official Points of Acceptance is available on our website
www.icicipruamc.com under the “Contact Us “section.
We shall continue to work towards your investment success and keep you updated on our views
in the future.
We look forward to a long partnership with you on your road to wealth creation.
Warm regards,
For ICICI Prudential Asset Management Company Limited
Sd/-
Authorized Signatory
19
Annexure A
Change in fundamental attributes of the ICICI Prudential Bharat Consumption Fund:
With a view to standardize the provisions under the Scheme, the AMC proposes to introduce the
following provisions in the Scheme:
1. Writing of call options under covered call strategy:
SEBI has vide its circular dated August 18, 2010, permitted Mutual Funds to invest in
derivatives subject to making adequate disclosures. In partial modification to the aforesaid
circular, SEBI has vide its circular dated January 16, 2019 (the Circular), permitted mutual
fund schemes (except index funds and exchange traded funds) to write call options under
covered call option strategy for constituent stocks of NIFTY 50 and BSE SENSEX, subject to
certain investment restrictions.
2. Segregation of portfolios:
The provisions related to segregation of portfolios in accordance with SEBI Circulars are
proposed to be included.
The Scheme Information Document will suitably be modified to include the aforesaid provisions
and other disclosures as required in this regard. The proposed changes and disclosures to be
included in the SID of the Scheme are as below:
1. COVERED CALL STRATERGY:
RISKS FOR WRITING COVERED CALL OPTIONS FOR EQUITY SHARES
A call option gives the holder (buyer) the right but not the obligation to buy an asset by a certain
date for a certain price. Covered calls are an options strategy where a person holds a long position
in an asset and writes (sells) call options on that same asset to generate an income stream. The
Scheme may write call options under covered call strategy, as permitted by the regulations. Risks
associated thereto are mentioned below:
a) Writing call options are highly specialized activities and entail higher than ordinary investment
risks. In such investment strategy, the profits from call option writing is capped at the option
premium, however the downside depends upon the increase in value of the underlying equity
shares. This downside risk is reduced by writing covered call options.
b) The Scheme may write covered call option only in case it has adequate number of underlying
equity shares as per regulatory requirement. This would lead to setting aside a portion of
investment in underlying equity shares. If covered call options are sold to the maximum extent
allowed by regulatory authority, the scheme may not be able to sell the underlying equity shares
immediately if the view changes to sell and exit the stock. The covered call options need to be
unwound before the stock positions can be liquidated. This may lead to a loss of opportunity,
or can cause exit issues if the strike price at which the call option contracts have been written
become illiquid. Hence, the scheme may not be able to sell the underlying equity shares, which
can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity.
c) The writing of covered call option would lead to loss of opportunity due to appreciation in value
of the underlying equity shares. Hence, when the appreciation in equity share price is more than
the option premium received the scheme would be at a loss.
d) The total gross exposure related to option premium paid and received must not exceed the
regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to buy
any options.
20
Investment Restrictions on writing call options:
Mutual Fund schemes (excluding ETFs and Index funds) can write Call options under a covered
strategy for constituent stocks of NIFTY 50 and BSE SENSEX subject to the following:
a) The total notional value (taking into account strike price as well as premium value) of call options
written by a scheme shall not exceed 15% of the total market value of equity shares held in that
scheme.
b) The total number of shares underlying the call options written shall not exceed 30% of the
unencumbered shares of a particular company held in the scheme. The unencumbered shares
in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism
(SLBM), margin or any other kind of encumbrances.
a) At all points of time the Mutual Fund scheme shall comply with the provisions at points (a) and
(b) above. In case of any passive breach of the requirement at paragraph (a) above, the
respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing
period, no additional call options can be written in the said scheme.
b) In case a Mutual Fund scheme needs to sell securities on which a call option is written under a
covered call strategy, it must ensure compliance with paragraphs (a) and (b) above while selling
the securities.
c) In no case, a scheme shall write a call option without holding the underlying equity shares. A
call option can be written only on shares which are not hedged using other derivative contracts.
d) The premium received shall be within the requirements prescribed in terms of SEBI circular
dated August 18, 2010 i.e. the total gross exposure related to option premium paid and received
must not exceed 20% of the net assets of the scheme.
e) The exposure on account of the call option written under the covered call strategy shall not be
considered as exposure in terms of paragraph 3 of SEBI Circular no. Cir/IMD/DF/11/2010, dated
August 18, 2010.
f) The call option written shall be marked to market daily and the respective gains or losses
factored into the daily NAV of the respective scheme(s) until the position is closed or expired.
Under Derivatives Strategy –
Writing call options under Covered call strategy
A call option gives the holder (buyer) the right but not the obligation to buy an asset by a certain
date for a certain price. Covered calls are an options strategy where a person holds a long position
in an asset and writes (sells) call options on that same asset to generate an income stream. The
Scheme may write call options under covered call strategy, as permitted by Regulations.
Benefits of using Covered Call strategy in Mutual Funds:
The covered call strategy can be followed by the Fund Manager in order to hedge risk thereby
resulting in better risk adjusted returns of the Scheme. This strategy is also employed when the
Fund Manager has a short-term neutral view on the asset and for this reason holds the asset long
and simultaneously takes a short position via covered call option strategy to generate income from
the option premium. The strategy offers the following benefits:
g) Hedge against market risk - Since the fund manager sells a call option on a stock already owned
by the mutual fund scheme, the downside from fall in the stock price would be lower to the
extent of the premium earned from the call option.
h) Generating additional returns in the form of option premium in a range bound market.
Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in the
right direction
Illustration – Covered Call strategy using stock call options:
Suppose, a fund manager buys equity stock of ABC Ltd. For Rs. 1000 and simultaneously sells a
call option on the same stock at a strike price of Rs. 1100. The scheme earns a premium of say, Rs.
50. Here, the fund manager does not think that the stock price will exceed Rs. 1100.
21
Scenario 1: Stock price exceeds Rs. 1100
The call option will get exercised and the fund manager will sell the stock to settle his obligation on
the call at Rs. 1100 (earning a return of 10% on the stock purchase price). Also, the scheme has
earned a premium of Rs. 50 which reduced the purchase cost of the stock (Rs. 1000 – Rs. 50 = Rs.
950).
Net Gain – Rs. 150
Scenario 2: Stock prices stays below Rs. 1100
The call option will not get exercised and will expire worthless. The premium earned on call option
will generate alpha for the scheme.
Net Gain – Rs. 50.
2. PROVISIONS RELATING TO SEGREGATION OF PORTFOLIOS:
In order to ensure fair treatment to all investors in case of a Credit Event and to deal with liquidity
risk, SEBI vide its circular no. SEBI/HO/IMD/DF2/CIR/P/2018/160 dated December 28, 2018, as
amended from time to time has allowed creation of Segregated Portfolio of debt and money market
instruments by mutual fund schemes.
The AMC may create a segregated portfolio of debt and money market instruments in a mutual
fund scheme in case of a credit event and to deal with liquidity risk.
In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or money
market instrument affected by a credit event, that has been segregated in a mutual fund scheme
and the term ‘main portfolio’ shall mean the scheme portfolio excluding the segregated portfolio.
The term ‘total portfolio’ shall mean the scheme portfolio including the securities affected by the
credit event.
The AMC at its discretion may create Segregated Portfolio in the Scheme, with the approval of the
Trustees, subject to the following:
A segregated portfolio may be created in a mutual fund scheme in case of a credit event at issuer
level i.e. downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:
a. Downgrade of a debt or money market instrument to ‘below investment grade’, or
b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating.
In case of difference in rating by multiple CRAs, the most conservative rating shall be considered.
Creation of segregated portfolio shall be based on issuer level credit events as detailed above and
implemented at the ISIN level.
The AMC may also create a segregated portfolio of unrated debt and money market instruments of
an issuer that does not have any outstanding rated debt or money market instruments in case of
‘actual default’ of either the interest or principal amount.' subject to guidelines prescribed by SEBI
in this behalf from time to time.
Process for creation of segregated portfolio
1. The AMC shall decide on creation of segregated portfolio on the day of credit event, as per
the process laid down below:
i. The AMC shall seek approval of Trustees, prior to creation of the segregated portfolio.
ii. The AMC shall immediately issue a press release disclosing its intention to segregate such
debt and money market instrument and its impact on the investors. It shall also be disclosed
that the segregation shall be subject to trustee approval. Additionally, the said press release
shall be prominently disclosed on the website of the AMC. (icicipruamc.com)
22
iii. The AMC shall ensure that till the time the Trustee approval is received, the subscription
and redemption in the scheme shall be suspended for processing with respect to creation
of units and payment on redemptions.
2. Upon receipt of approval from Trustees:
i. The segregated portfolio shall be effective from the day of credit event
ii. The AMC shall issue a press release immediately with all relevant information pertaining to
the segregated portfolio. The said information shall also be submitted to SEBI.
iii. An e-mail or SMS shall be sent to all unit holders of the concerned scheme.
iv. The NAV of both segregated and main portfolio shall be disclosed from the day of the credit
event.
v. All existing investors in the scheme as on the day of the credit event shall be allotted equal
number of units in the segregated portfolio as held in the main portfolio.
vi. No redemption and subscription shall be allowed in the segregated portfolio. However, in
order to facilitate exit to unit holders in segregated portfolio, AMC shall enable listing of
units of segregated portfolio on the recognized stock exchange within 10 working days of
creation of segregated portfolio and also enable transfer of such units on receipt of transfer
requests.
3. If the trustees do not approve the proposal to segregate portfolio, the AMC shall issue a press
release immediately informing investors of the same.
Valuation and processing of subscriptions and redemptions:
1. Notwithstanding the decision to segregate the debt and money market instrument, the valuation
shall take into account the credit event and the portfolio shall be valued based on the principles
of fair valuation (i.e. realizable value of the assets) in terms of the relevant provisions of SEBI
(Mutual Funds) Regulations, 1996 and Circular(s) issued thereunder.
2. All subscription and redemption requests for which NAV of the day of credit event or subsequent
day is applicable will be processed as per the existing circular on applicability of NAV as under:
a. Upon trustees’ approval to create a segregated portfolio -
i. Investors redeeming their units will get redemption proceeds based on the NAV of
main portfolio and will continue to hold the units of segregated portfolio.
ii. Investors subscribing to the scheme will be allotted units only in the main portfolio
based on its NAV.
b. In case trustees do not approve the proposal of segregated portfolio, subscription and
redemption applications will be processed based on the NAV of total portfolio.
Periodic Disclosures:
In order to enable the existing as well as the prospective investors to take informed decision, the
following shall be adhered to:
a. A statement of holding indicating the units held by the investors in the segregated portfolio
along with the NAV of both segregated portfolio and main portfolio as on the day of the
credit event shall be communicated to the investors within 5 working days of creation of
the segregated portfolio.
b. Adequate disclosure of the segregated portfolio shall appear in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of the
mutual fund and the scheme.
c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.
d. The information regarding number of segregated portfolios created in a scheme shall
appear prominently under the name of the scheme at all relevant places such as SID, KIM-
cum-Application Form, advertisement, AMC and AMFI websites, etc.
e. The scheme performance required to be disclosed at various places shall include the impact
of creation of segregated portfolio. The scheme performance should clearly reflect the fall
23
in NAV to the extent of the portfolio segregated due to the credit event and the said fall in
NAV along with recovery(ies), if any, shall be disclosed as a footnote to the scheme
performance.
f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall be
carried out for a period of at least 3 years after the investments in segregated portfolio are
fully recovered/ written-off.
g. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be provided
to the investors at the time of recovery and also at the time of writing-off of the segregated
securities.
In order to ensure timely recovery of investments of the segregated portfolio, the Trustees to the
fund would continuously monitor the progress and take suitable action as may be required.
TER for the Segregated Portfolio
a. AMC shall not charge investment and advisory fees on the segregated portfolio. However,
TER (excluding the investment and advisory fees) can be charged, on a pro-rata basis only
upon recovery of the investments in segregated portfolio.
b. The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
c. The legal charges related to recovery of the investments of the segregated portfolio may
be charged to the segregated portfolio in proportion to the amount of recovery. However,
the same shall be within the maximum TER limit as applicable to the main portfolio. The
legal charges in excess of the TER limits, if any, shall be borne by the AMC.
d. The costs related to segregated portfolio shall in no case be charged to the main portfolio.
Investors may also note that the process followed by the AMC/Trust regarding creation of
segregated portfolios shall be in accordance with the provisions laid down by SEBI in this regard,
from time to time.
Benefits and Features of Creation of Segregated Portfolio:
a. Creation of Segregated portfolio helps ensuring fair treatment to all investors in case of a
credit event and helps in managing liquidity risk during such events;
b. Investors redeeming their units will get redemption proceeds based on the NAV of main
portfolio and will continue to hold the units of segregated portfolio;
c. Investors subscribing to the scheme will be allotted units only in the main portfolio based
on its NAV;
d. A statement of holding indicating the units held by the investors in the segregated portfolio
along with the NAV of both segregated portfolio and main portfolio as on the day of the
credit event shall be communicated to the investors within 5 working days of creation of
the segregated portfolio;
e. Adequate disclosure of the segregated portfolio shall appear in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of the
mutual fund and the scheme; and
f. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be
provided to the investors at the time of recovery and also at the time of writing-off of the
segregated securities.
Numerical illustration explaining how segregated portfolios will work
Total Assets under DEBT instruments: 10 lakhs and Total 2 investors in the Scheme:
Units Amount Portfolio Value
24
Investors A 30,000 3,75,000 DEBT A 5,00,000
Investors B 50,000 6,25,000 DEBT B 3,00,000
DEBT C 2,00,000
Total 80,000 10,00,000 Total 10,00,000
NAV (Full Portfolio): Rs. 12.5
Credit Event: Security DEBT B downgrades and value falls from 3,00,000 to 280,000
Post Segregation (Main Portfolio):
Units Amount Portfolio Value
Investors A 30,000 2,62,500 DEBT A 5,00,000
Investors B 50,000 4,37,500 DEBT C 2,00,000
Total 80,000 7,00,000 Total 7,00,000
NAV (Main Portfolio): Rs. 8.75
Post Segregation (Segregated Portfolio):
Total 2 investors in the Scheme: Units Amount Portfolio Value
Investors A (units) 30,000 1,05,000 DEBT B 2,80,000
Investors B (units) 50,000 1,75,000
Total 80,000 280,000 Total 280,000
NAV (Segregated Portfolio): Rs. 3.5
Units
Main
Portfolio
Segregated
Portfolio Amount
Total Holding of Investor A 30,000 2,62,500 1,05,000 3,67,500
Total Holding of Investor B 50,000 4,37,500 1,75,000 6,12,500
Total 700,000 2,80,000
9,80,000
Notes:
Investors who invest / subscribe to the units of the Scheme post creation of segregated portfolio
shall be allotted units in the Main Portfolio only.
Investors redeeming their units post creation of segregated portfolio will get redemption
proceeds based on NAV of main portfolio and will continue to hold units in Segregated portfolio.
No redemption and / or subscription shall be allowed in the Segregated Portfolio.
Units of Segregated portfolio shall be listed on a recognised stock exchange.
In order to ensure timely recovery of investments of the segregated portfolio, trustees shall ensure
that:
a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.
b. Upon recovery of money, whether partial or full, it shall be immediately distributed to the
investors in proportion to their holding in the segregated portfolio. Any recovery of amount
of the security in the segregated portfolio even after the write off shall be distributed to the
investors of the segregated portfolio.
c. An Action Taken Report (ATR) on the efforts made by the AMC to recover the investments
of the segregated portfolio is placed in every trustee meeting till the investments are fully
recovered/ written-off.
d. The trustees shall monitor the compliance of this circular and disclose in the half-yearly
trustee reports filed with SEBI, the compliance in respect of every segregated portfolio
created.
25
In order to avoid mis-use of segregated portfolio, trustees shall ensure to have a mechanism in
place to negatively impact the performance incentives of Fund Managers, Chief Investment Officers
(CIOs), etc. involved in the investment process of securities under the segregated portfolio,
mirroring the existing mechanism for performance incentives of the AMC, including claw back of
such amount to the segregated portfolio of the scheme.
Risk factors associated with creation of segregated portfolios
1. Liquidity risk – A segregated portfolio is created when a credit event occurs at an issuer level in
the scheme. This may reduce the liquidity of the security issued by the said issuer, as demand for
this security may reduce. This is also further accentuated by the lack of secondary market liquidity
for corporate papers in India. As per SEBI norms, the scheme is to be closed for redemption and
subscriptions until the segregated portfolio is created, running the risk of investors being unable to
redeem their investments. However, it may be noted that, the proposed segregated portfolio is
required to be formed within one day from the occurrence of the credit event.
Investors may note that no redemption and subscription shall be allowed in the segregated
portfolio. However, in order to facilitate exit to unit holders in segregated portfolio, AMC shall list
the units of the segregated portfolio on a recognized stock exchange within 10 working days of
creation of segregated portfolio and also enable transfer of such units on receipt of transfer
requests. For the units listed on the exchange, it is possible that the market price at which the units
are traded may be at a discount to the NAV of such Units. There is no assurance that a deep
secondary market will develop for units of segregated portfolio listed on the stock exchange. This
could limit the ability of the investors to resell them.
2. Valuation risk - The valuation of the securities in the segregated portfolio is required to be carried
out in line with the applicable SEBI guidelines. However, it may be difficult to ascertain the fair value
of the securities due to absence of an active secondary market and difficulty to price in qualitative
factors.
Investors are requested to refer to the SID to the respective scheme for details pertaining to
applicable NAV for redemption and switch outs, payment of redemption/repurchase proceeds and
Taxation and Stamp Duty payable.
26
Annexure B
Portfolios of the Schemes as on August 31, 2021:
A) ICICI Prudential Bharat Consumption Fund – Series 1:
ICICI Prudential Mutual Fund
ICICI Prudential Bharat Consumption Fund - Series 1
Portfolio as on Aug 31,2021
Company/Issuer/Instrument Name
ISIN Coupon Industry/Rating Quantity Exposure/Market
Value(Rs.L
akh)
% to Nav
Yield of
the
instr
ume
nt
Yield to Call @
Equity & Equity Related
Instruments (Note -1) 118053.21
84.0
6%
Listed / Awaiting Listing
On Stock Exchanges 118053.21
84.0
6%
Bharti Airtel Ltd.
INE397D01024
Telecom -
Services 1434974 9528.94
6.79
%
Titan Company Ltd.
INE280A01028
Consumer
Durables 484584 9311.77
6.63
%
Alkem Laboratories Ltd.
INE540L01014 Pharmaceuticals 220575 8555.22
6.09
%
Aditya Birla Fashion and
Retail Ltd. INE647O01011 Retailing 3484687 7251.63
5.16
%
Fortis Healthcare Ltd.
INE061F01013
Healthcare
Services 2182836 6341.14
4.52
%
Maruti Suzuki India Ltd.
INE585B01010 Auto 90750 6212.84
4.42
%
Motherson Sumi Systems Ltd.
INE775A01035 Auto Ancillaries 2614540 5715.38
4.07
%
Inox Leisure Ltd.
INE312H01016 Entertainment 1409608 4359.21
3.10
%
Gland Pharma Ltd.
INE068V01023 Pharmaceuticals 107879 4200.70
2.99
%
Nestle India Ltd.
INE239A01016
Consumer Non
Durables 21323 4151.11
2.96
%
Asian Paints Ltd.
INE021A01026
Consumer Non
Durables 128892 4126.28
2.94
%
Voltas Ltd.
INE226A01021
Consumer
Durables 391411 3897.87
2.78
%
Britannia Industries Ltd. INE216A01030
Consumer Non Durables 96109 3841.96
2.74%
Dr. Reddy's Laboratories Ltd. INE089A01023 Pharmaceuticals 72798 3424.45
2.44%
Hindustan Unilever Ltd. INE030A01027
Consumer Non Durables 111560 3039.01
2.16%
Sun TV Network Ltd.
INE424H01027 Entertainment 620106 2992.32
2.13
%
Minda Industries Ltd.
INE405E01023 Auto Ancillaries 413534 2948.50
2.10
%
Marico Ltd.
INE196A01026
Consumer Non
Durables 487228 2652.71
1.89
%
Ashok Leyland Ltd.
INE208A01029 Auto 2091302 2567.07
1.83
%
Mahindra & Mahindra Ltd.
INE101A01026 Auto 303712 2409.35
1.72
%
V-Mart Retail Ltd.
INE665J01013 Retailing 57814 2077.63
1.48
%
Lupin Ltd.
INE326A01037 Pharmaceuticals 206962 1982.39
1.41
%
Divi's Laboratories Ltd.
INE361B01024 Pharmaceuticals 35587 1841.13
1.31
%
Blue Star Ltd.
INE472A01039
Consumer
Durables 216588 1678.45
1.20
%
PVR Ltd.
INE191H01014 Entertainment 118928 1579.30
1.12
%
Apollo Tyres Ltd.
INE438A01022 Auto Ancillaries 631844 1345.51
0.96
%
Bharat Petroleum Corporation
Ltd. INE029A01011
Petroleum
Products 231792 1093.25
0.78
%
27
Tata Motors Ltd. - DVR
IN9155A01020 Auto 786999 1074.65
0.77
%
Biocon Ltd.
INE376G01013 Pharmaceuticals 274651 985.59
0.70
%
Ajanta Pharma Ltd.
INE031B01049 Pharmaceuticals 43344 965.62
0.69
%
ICICI Bank Ltd.
INE090A01021 Banks 113108 813.30
0.58
%
IPCA Laboratories Ltd.
INE571A01020 Pharmaceuticals 27677 712.77
0.51
%
Bajaj Consumer Care Ltd.
INE933K01021
Consumer Non
Durables 287024 705.65
0.50
%
Prestige Estates Projects Ltd.
INE811K01011 Construction 200000 705.30
0.50
%
EIH Ltd.
INE230A01023 Leisure Services 558740 572.15
0.41
%
Torrent Pharmaceuticals Ltd.
INE685A01028 Pharmaceuticals 17646 548.07
0.39
%
Hindustan Copper Ltd.
INE531E01026
Non - Ferrous
Metals 373305 444.05
0.32
%
The Indian Hotels Company
Ltd. INE053A01029 Leisure Services 300000 421.20
0.30
%
Aurobindo Pharma Ltd.
INE406A01037 Pharmaceuticals 40000 290.92
0.21
%
Indoco Remedies Ltd.
INE873D01024 Pharmaceuticals 58901 282.58
0.20
%
Sandhar Technologies Ltd. INE278H01035 Auto Ancillaries 81622 239.40
0.17%
Tamil Nadu Newsprint & Papers Ltd. INE107A01015 Paper 118695 160.06
0.11%
Andhra Paper Ltd INE435A01028 Paper 2982 6.78 ^
Unlisted Nil Nil
Debt Instruments Nil Nil
Listed / Awaiting Listing
On Stock Exchanges Nil Nil
Privately Placed/unlisted Nil Nil
Securitized Debt
Instruments Nil Nil
Term Deposits Nil Nil
Deposits (maturity not
exceeding 91 days) Nil Nil
Deposits (Placed as Margin) Nil Nil
Money Market
Instruments 1993.17
1.42
%
Certificate of Deposits Nil Nil
Commercial Papers Nil Nil
Treasury Bills
1993.17
1.42
%
364 Days Treasury Bills
IN002020Z253 SOV 1000000 998.14
0.71
% 3.10
91 Days Treasury Bills
IN002021X173 SOV 1000000 995.03
0.71
% 3.20
28
TREPS
12730.13
9.06
%
Units of Real Estate
Investment Trust (REITs) Nil Nil
Others 1365.00
0.97%
Cash Margin - Derivatives
1365.00 0.97
%
Net Current Assets
6293.41
4.48
%
Total Net Assets
140434.92
100.
00%
Details of Stock Future /
Index Future
Company/Issuer/Instrum
ent Name ISIN Coupon Industry/Rating Quantity
Exposure/
Market Value(Rs.L
akh)
% to
Nav
Stock / Index Futures
Hindustan Unilever Ltd. $$
Consumer Non Durables 175200 4777.53
3.40%
Asian Paints Ltd. $$
Consumer Non Durables 139200 4460.25
3.18%
Nestle India Ltd. $$
Consumer Non Durables 7650 1495.10
1.06%
Cipla Ltd. $$
Pharmaceuticals 154050 1460.63
1.04
%
Bharti Airtel Ltd. $$
Telecom -
Services -1390101 -9230.97
-
6.57
%
Note- 1 : Index/ Stock futures are provided towards end of the table.
Non-Convertible debentures / Bonds & Zero Coupon Bonds / Deep Discount Bonds / Certificate of Deposits / Commercial Papers are
considered as Traded based on the information provided by external agencies.
$$ - Derivatives.
^ Value Less than 0.01% of NAV in absolute terms.
For the Instrument/security whose final ISIN is yet to be assigned, disclosure of ISIN has been made as per the details
provided by external agencies.
@ As per AMFI Best Practices Guidelines Circular No. 91/ 2020 - 21 dated March 24, 2021 on Valuation of AT-1 Bonds and
Tier 2 Bonds, Yield to call is disclosed for AT-1 Bonds and Tier 2 Bonds issued by Banks as provided by Valuation agencies.
Number of Instances of Deviation In valuation Of Securities as per Sebi circular ref no SEBI/HO/IMD/DF4/CIR/P/2019/102
dated September 24, 2019- 1.Refer link: https://www.icicipruamc.com/docs/default-source/default-document-library/yes-
bank-valuation-16032020.pdf
B) ICICI Prudential Bharat Consumption Fund
ICICI Prudential Mutual Fund
ICICI Prudential Bharat Consumption Fund
Portfolio as on Aug 31,2021
Company/Issuer/Instrument Name ISIN Coupon Industry/Rating Quantity Exposure
/Market
Value(Rs
.Lakh)
% to
Nav
Yield of the
instrument
Yield to Call @
Equity & Equity Related Instruments
25009.2
9
94.80
%
Listed / Awaiting Listing On Stock
Exchanges
25009.2
9
94.80
%
Bharti Airtel Ltd.
INE397D01024 Telecom - Services 335226 2226.07 8.44%
ITC Ltd.
INE154A01025
Consumer Non
Durables 1032204 2181.05 8.27%
Bata India Ltd.
INE176A01028 Consumer Durables 121160 2146.71 8.14%
29
Britannia Industries Ltd.
INE216A01030 Consumer Non Durables 53501 2138.70 8.11%
Voltas Ltd.
INE226A01021 Consumer Durables 202873 2020.31 7.66%
Mahindra & Mahindra Ltd.
INE101A01026 Auto 237707 1885.73 7.15%
TVS Motor Company Ltd.
INE494B01023 Auto 221559 1163.52 4.41%
Hindustan Unilever Ltd.
INE030A01027
Consumer Non
Durables 41499 1130.47 4.29%
Gillette India Ltd.
INE322A01010
Consumer Non
Durables 19199 1117.33 4.24%
PVR Ltd.
INE191H01014 Entertainment 83367 1107.07 4.20%
Aditya Birla Fashion and Retail Ltd.
INE647O01011 Retailing 446306 928.76 3.52%
United Breweries Ltd.
INE686F01025
Consumer Non
Durables 61102 901.25 3.42%
United Spirits Ltd.
INE854D01024
Consumer Non
Durables 116845 835.62 3.17%
Maruti Suzuki India Ltd.
INE585B01010 Auto 12187 834.33 3.16%
Whirlpool of India Ltd.
INE716A01013 Consumer Durables 34629 737.67 2.80%
Nazara technologies Ltd
INE418L01021 Entertainment 30387 558.16 2.12%
Asian Paints Ltd.
INE021A01026
Consumer Non
Durables 16579 530.75 2.01%
Bajaj Electricals Ltd.
INE193E01025 Consumer Durables 41589 505.04 1.91%
The Phoenix Mills Ltd.
INE211B01039 Construction 50124 432.44 1.64%
Sanofi India Ltd.
INE058A01010 Pharmaceuticals 4000 360.55 1.37%
Lupin Ltd.
INE326A01037 Pharmaceuticals 29904 286.44 1.09%
Titan Company Ltd.
INE280A01028 Consumer Durables 14782 284.05 1.08%
Motherson Sumi Systems Ltd.
INE775A01035 Auto Ancillaries 100986 220.76 0.84%
Trent Ltd.
INE849A01020 Retailing 20318 204.58 0.78%
Burger King India Ltd
INE07T201019 Leisure Services 124009 199.96 0.76%
Eicher Motors Ltd.
INE066A01021 Auto 1346 36.06 0.14%
La Opala RG Ltd.
INE059D01020 Consumer Durables 7335 20.38 0.08%
Relaxo Footwears Ltd.
INE131B01039 Consumer Durables 1303 15.53 0.06%
Unlisted
Nil Nil
Debt Instruments
8.01
0.03
%
Listed / Awaiting Listing On Stock
Exchanges 8.01 0.03
%
Non-Convertible debentures / Bonds
8.01
0.03
%
Britannia Industries Ltd.
INE216A08027 5.5 CRISIL AAA 27397 8.01 0.03% 5.14
Privately Placed/unlisted
Nil Nil
Securitized Debt Instruments
Nil Nil
Term Deposits
Nil Nil
Deposits (maturity not exceeding 91
days) Nil Nil
Deposits (Placed as Margin)
Nil Nil
30
Money Market Instruments
Nil Nil
Certificate of Deposits
Nil Nil
Commercial Papers
Nil Nil
Treasury Bills
Nil Nil
TREPS
1600.49
6.07
%
Units of Real Estate Investment Trust
(REITs) Nil Nil
Net Current Assets
-236.40
-
0.90
%
Total Net Assets
26381.3
9
100.0
0%
Non-Convertible debentures / Bonds & Zero Coupon Bonds / Deep Discount Bonds / Certificate of Deposits / Commercial Papers are considered as
Traded based on the information provided by external agencies.
For the Instrument/security whose final ISIN is yet to be assigned, disclosure of ISIN has been made as per the details provided by
external agencies.
@ As per AMFI Best Practices Guidelines Circular No. 91/ 2020 - 21 dated March 24, 2021 on Valuation of AT-1 Bonds and Tier 2
Bonds, Yield to call is disclosed for AT-1 Bonds and Tier 2 Bonds issued by Banks as provided by Valuation agencies.
Number of Instances of Deviation In valuation Of Securities as per Sebi circular ref no SEBI/HO/IMD/DF4/CIR/P/2019/102 dated September 24, 2019- 1.Refer link: https://www.icicipruamc.com/docs/default-source/default-document-library/yes-bank-valuation-
16032020.pdf
ICICI Prudential Bharat Consumption Fund – Series 1 (A Close Ended Equity Scheme following
Consumption Theme) is suitable for investors who are seeking*:
• Long term wealth creation
• A close ended equity scheme that aims to provide capital
appreciation by investing in a well-diversified portfolio of stocks
that could benefit from growth in consumption and related
activities.
Riskometer#
Investors understand that
their principal will be at Very
High Risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for
them.
ICICI Prudential Bharat Consumption Fund (An open ended equity scheme following consumption
theme) is suitable for investors who are seeking*:
Long term wealth creation
An open ended equity scheme that aims to provide capital
appreciation by investing in equity and equity related securities of
companies engaged in consumption and consumption related
activities.
Riskometer#
31
Investors understand that
their principal will be at Very
High Risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for
them
# Riskometers are basis scheme portfolio as on August 31, 2021.
Mutual Fund investments are subject to market risks, read all scheme related documents
carefully.