PARTICIPATE IN ONE OF

THE BIGGEST CONSUMPTION

MARKET OF THE WORLD
 BHARAT CONSUMPTION :
Unveil the structural Story of Indian Consumption
India with its 1.25 billion population enjoys a demographic advantage with proportion of
working age population over 50%. It has got 450mn youth born between 1980 and 2000,
one of the highest among the world. India’s per capita GDP has seen significant growth in
last decade. Source: Elara Capital

THE LONG TERM CONSUMPTION

GDP (USD bn) 7 Years for
Next
STORY IS PREDICATED ON:
2500
Trillion

2000 A large growing population

coupled with a young median age
1500
60 Years for First Trillion Dollar GDP

1000 An increase in labour force

500
A consistent trajectory of rising
0 incomes; which may result in
continued growth of the middle
1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017
class.

Source: Internal. Data as on Dec 2017. Elara Capital.

LARGEST HOME OF MILLENNIALS

India has got highest number of people born between 1980 and 2000. This population has
grown up in an increasing urbanized India with healthy economic environment. This
population seeks novelty, like experimentation. As a result, millennnials are more ready to
pay premium for product and services.
Source: BCG Report March 20, 2017, The New Indian, IMF, CITI Research, Elara Capital.

? WHY CONSUMPTION?
Structural Story on India’s demographic strength

Increase in discretionary spending in urban market and Government’s focus on

improving rural income will be positive for consumption

Change in rural consumption pattern: Due to technology access through penetration of

mobile telephony, rural consumption pattern is converging to urban consumption

Relatively less risky in times of uncertainties.

As Indians continue to climb the economic ladder, the composition of spend will change considerably.
While today, a higher spend would be towards basic needs. Following the developed country model,
one may expect that India too will see a shift in composition of the spending.

The scheme will invest in sectors representing the domestic consumption theme which includes
sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels,
Media & Entertainment, etc. Sectors mentioned above are indicative in nature and not an
exhaustive list.
 DISCRETIONARY NON-DISCRETIONARY

Media Healthcare

Consumer Durables Pharma

Bharat Consumption
Auto Power

Consumer
Paint Non-Durables
Telecom
Hotel & Resorts Textile
The stocks/sectors mentioned in this document are only for illustrative purposes and should not be construed as an indication of the portfolio of the
scheme.The sectors mentioned herein are a part of the scheme benchmark i.e. Nifty India Consumption Index. The sector(s)/stock(s) mentioned in this
document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these
sector(s)/stock(s). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer
to the SID for investment pattern, strategy and risk factors.

India has been one of the fastest growing FMCG markets worldwide
The market for beauty and personal care, packaged food and tobacco in India
recorded a CAGR of 13.2% compared with an average growth of 8.9% during
2003-10
Consumer FMCG products account for 50% of total rural spending. Rural consumer is
Non-Durables
getting more aspirational.
Source: Kantar Worldpanel India, World Bank, AC Nielsen, Nomura.

Consumer Electronics market is expected to record an 18% CAGR over

FY17-21F
Appliances market is expected to record a 12% CAGR over FY17-21
Indian consumer durable penetration is significantly lower than global
Consumer standards almost across all product categories
Durables
Combination of low penetration and income growth may drive growth across
categories on an sustainable basis.
Source: Makeinindia, Edeiweiss Research, Nomura Global Market Research, F:Forecast.

India is world’s fourth largest automobile industry and 7th largest commercial
vehicle manufacturer
Sales of cars, utility vehicles and vans grew at 8.85% during year 2017
Automotive sector is likely to contribute in excess of 12% of India’s GDP as per
Auto AMP 2016-26.
Source: Auto Motive Mission Plan 2016-26, IDFC Securities.
ICICI PRUDENTIAL BHARAT CONSUMPTION FUND – SERIES 2
The scheme aims to invest in Sectors that can benefit from consumption theme like Consumer
Non-Durables, Consumer Durables, Auto, Healthcare Services, etc. that are likely to play out well with
~3.5 years investment horizon
Helps in bottom-up stock selection with ~3.5 years view
Ability to reduce net equity risk at market peaks by hedging/use of derivatives
Aims to limit downside of the portfolio by using hedging strategies.

Type of scheme A Close Ended Equity Scheme following Consumption Theme

Investment Objective 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.

NFO Period 12th April 2018 to 26th April 2018

Options ICICI Prudential Bharat Consumption Fund - Series 2 Cumulative & Dividend
ICICI Prudential Bharat Consumption Fund - Series 2 Direct - Cumulative & Dividend

Minimum Application Amount Rs.5,000 (plus in multiple of Rs.10 thereafter)

Entry & Exit Load Nil

Benchmark Index Nifty India Consumption Index

Fund Manager** Mrinal Singh

**Ms. Priyanka Khandelwal for investment in ADR/GDR/ Foreign Securities

ICICI Prudential Bharat Consumption Fund - Series 2 is suitable for investors

who are seeking:* Riskometer

• 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. Low High

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Disclaimer: All figures and data given in the document are dated unless stated otherwise. In the preparation of the material contained in this document, the
AMC has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been
obtained from members / persons other than the AMC and / or its affiliates and which may have been made available to the AMC and / or to its affiliates.
Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy,
reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain
words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking
statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our
expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally,
which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in
interest rates, foreign exchange rates, equity prices or other rates or prices etc. The AMC (including its affiliates), the Mutual Fund, the trust and any of its
officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special,
exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully
responsible / are liable for any decision taken on this material. The sector(s) / stock(s) mentioned in this presentation do not constitute any recommendation
of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s) / stock(s). Past performance may or may not be
sustained in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please
refer to the SID for investment pattern, strategy and risk factors. Investors are advised to consult their own legal, tax and financial advisors to determine
possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.