The Indian economy has been going through a rough patch with Gross Domestic Product (GDP) & Index of Industrial Production (IIP) growth declining and Fiscal Deficit & Inflation soaring high. Such macro headwinds and various industry and company specific micro factors have caused equity markets, in general, and some very good quality, large companies, in particular, to be shunned by investors.

These companies could be ones which are best poised for a bounce-back at the first sight of an improving economy; a favorable regulatory change; changing industry dynamics or a change which is very specific to the company itself. Such companies with outlook for improving profits or Return on Equity (ROE) are expected to be good investment opportunities in today’s tough environment. The opportunity becomes even more compelling given the strong linkage between the country’s GDP growth, the ROE of these large companies and their price performance.

Opportunity in companies which have gone through a phase of ROE suppression due to various macro and micro factors and are now at the bottom of the cycle. Factors leading to possible turn-around:

Linkage between GDP growth, ROE and market performance

Opportunity for investors in current equity markets:

Equity Savings Fund - Series1Equity Savings Fund - Series1

3

4

5

6

7

8

9

10

14.0

16.0

18.0

20.0

22.0

24.0

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Sensex ROE (%, LHS) India real GDP growth(% yoy, RHS)

0

5000

10000

15000

20000

25000

10

12

14

16

18

20

22

24

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Sensex ROE (%, LHS) S&P BSE Sensex

Source: Edelweiss Securities Ltd

• Deregulation of diesel prices • Industry-friendly regulation in telecom

• Stable political environment • Global recovery

• Increase in market share • Cheaper cost of leverage

• Improved competitive dynamics in the industry

Regulatory changes

Economic Leverage

Company Specific Factors

Favourable Industry Dynamics

NFO Period: January 20, 2014 to February 07, 2014

• Long term wealth creation solution• A close-ended equity scheme that seeks to generate capital appreciation by investing in Equity

securities which are specified as eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS)

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

HIGH RISK(BROWN)

This product is suitable for investors who are seeking*:

(BLUE) investors understand that their principal will be at low risk

(YELLOW) investors understand that their principal will be at medium risk

(BROWN) investors understand that their principal will be at high risk

Note: Risk may be represented as:

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

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.

ICICI Prudential Equity Savings Fund - Series 1 is a 3 year close ended equity scheme. The fund portfolio would comprise of focused 20-25 stocks#.#The number of stocks provided is to explain the investment philosophy and the actual number may go up or down depending on then prevailing market conditions at the time of investment

The fund aims to: • Identify companies which are likely to see expansion in ROE over next 3 years period.• Identify companies which are likely to gain from improving economy, a favourable regulatory change,

change in industry dynamics or company specific factors.• Be adequately diversified, while not restricting it to benchmark sector weights.

Introducing ICICI Prudential Equity Savings Fund – Series 1

What is Rajiv Gandhi Equity Savings Scheme?

Scheme Features

Distributed by:

Type of scheme

Investment Objective

Options

Minimum Application Amount

Entry & Exit Load

Benchmark Index

Fund Manager

A Close ended equity scheme

The primary investment objective of the Scheme is to seek to generate capital appreciation, from a portfolio that is constituted of equity securities which are specified as eligible securities for Rajiv Gandhi Equity Savings Scheme (RGESS). The Scheme may also invest a certain portion of its corpus in money market instruments from time to time.

There can be no assurance that the investment objective of the Scheme will be realized.

Direct Plan – Growth and Dividend Option • Regular Plan –Growth and Dividend Option

Rs.5,000 (plus in multiple of Rs.10)

Not Applicable

CNX 100 Index

Manish Gunwani & Venkatesh Sanjeevi

Rajiv Gandhi Equity Savings Scheme or RGESS is a new equity tax advantage savings scheme for equity investors in India, with the stated objective of "encouraging the savings of the small investors in the domestic capital markets." The Scheme qualifies under Rajiv Gandhi Equity Savings Scheme (RGESS), 2012.

Note: Please refer to the RGESS, 2012 notified by the Central Government on November 23, 2012 and SEBI Circular number CIR/ MRD/DP/32/2012 dated December 06, 2012 for additional details.