“Our Equity Valuation Index now into Deep Green Zone” - Invest aggressively into equities
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The document recommends aggressive investment in equities due to attractive valuations as identified by an equity valuation index and current market conditions influenced by the COVID-19 pandemic. It highlights specific investment schemes including ICICI Prudential funds focusing on value, small caps, and dynamic asset allocation, while cautioning that quality stocks remain expensive. The context stresses the importance of consulting financial advisors and the risks associated with mutual fund investments.
“Our Equity Valuation Index now into Deep Green Zone” - Invest aggressively into equities
- 1. Time to Invest in Equities – Valuations Attractive Equity Valuation index is calculated by assigning equal weights to Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE and Market Cap to GDP ratio. G-Sec – Government Securities. GDP – Gross Domestic Product; Data as of Mar 23, 2020 Our Equity Valuation Index highlights that Equities are available at attractive valuations Our VCTS (Valuation, Cycle, Trigger and Sentiments) framework indicates that the Valuations are attractive, we are in the low to mid phase of business cycle and sentiments around the asset class is negative Hence, we recommend invest aggressively in equities at this juncture Global crisis usually provided a good opportunity to invest in equities. We believe with recent market correction due to concerns around COVID-19 spread, market has stepped into an oversold zone. This provides a good margin of safety for equity investments COVID-19 is Coronavirus disease 2019 We believe quality stocks are still expensive and the rest of the market is attractively priced. Hence, we recommend investing in Value and Special Situations theme through schemes like ICICI Prudential Value Discovery Fund and ICICI Prudential India Opportunities Fund We remain positive on the Smallcap space as valuations are reasonable and recommend investing in ICICI Prudential Smallcap Fund We recommend adding equities through Asset allocation schemes and Fund of fund schemes like ICICI Prudential Balanced Advantage Fund and ICICI Prudential Asset Allocator Fund (FOF) 50 70 90 110 130 150 170 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Invest in Equities Aggressively invest in Equities Neutral Incremental Money to Debt Book Partial Profits 72.6 Equity Valuation Index Highlights Our Recommendations
- 2. Time to Invest in Equities – Valuations Attractive Scheme Name Type of Scheme ICICI Prudential Smallcap Fund An open ended equity scheme predominantly investing in small cap stocks. ICICI Prudential Value Discovery Fund An open ended equity scheme following a value investment strategy. ICICI Prudential India Opportunities Fund An Open Ended Equity Scheme following Special Situations theme ICICI Prudential Balanced Advantage Fund An open ended dynamic asset allocation fund ICICI Prudential Asset Allocator Fund (FOF)* An open ended fund of funds scheme investing in equity oriented schemes, debt oriented schemes and gold ETFs/schemes. *Investors may please note that they will be bearing the recurring expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment. Type of Scheme Riskometers
- 3. Time to Invest in Equities – Valuations Attractive *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (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 be 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. All figures and other data given in this document are dated and the same may or may not be relevant in future. The information contained herein should not be construed as a forecast or promise nor should it be considered as an investment advice. 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. The debt securities mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these debt securities. 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. The information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to buy or sell or solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US") and/or Canada or for the benefit of US persons (being persons falling within the definition of the term "US Person" under the US Securities Act, 1933, as amended) or persons residing in Canada. Disclaimer