ICICI Prudential

Midcap 150 ETF

(An open-ended Index Exchange Traded Fund tracking

Nifty Midcap 150 Index)

What is an ETF?

Equity ETFs Debt ETFs Commodity ETFs

Like an index fund

• Tracks an index

• Open ended mutual fund scheme

• Lower expense ratio compared to actively managed schemes

• Lower turnover and higher transparency as compared to

actively managed schemes

Like a stock

• Intraday trading on the exchange

• Real time prices

• Put limit orders

• Minimum trading lot - 1 unit on the exchange

• Mandatory delivery into your Demat account

ETFs are generally passively managed mutual fund schemes tracking a benchmark index and reflect the performance of

that index.

The common types of ETFs are as under:

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What are the benefits offered by ETFs?

Low cost as

compared to

actively managed

mutual fund

schemes

Trading at real

time NAV

Transparency

in holdings

and price

Adequate liquidity

with AMC and on

stock exchange

Provides

diversification

benefits

Index is based on

research and back

tested data

Periodic

portfolio

rebalancing

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Growth of Global ETFs

Assets under Management (AUM)

of ETFs across the globe has

grown exponentially from $453 bn

in 2005 to $5,955 bn in November

2019 – a CAGR of ~20%

In the above chart, bars represent AUM and the line represents number of ETFs.

Data Source: www.etfgi.com. Data as on November 2019.

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Growth of ETFs in India

Data Source: MFI Explorer, Data as November 30, 2019. EPFO: Employee Provident Fund Organisation.

MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html

• Indian ETF industry has seen rapid growth in last 3 years.

• Recent investments in ETFs:

EPFO’s apex decision making body is considering to increase investments in equity ETFs to 15% of the investible deposits. The major contribution

towards AUM of ETFs is by EPFO.

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Rs.in

cro

res

Nifty Midcap 150 Index

Top 10 Index Constituents:

Securities Weightage

Info Edge (India) Ltd. 1.95%

Federal Bank Ltd. 1.94%

City Union Bank Ltd. 1.90%

RBL Bank Ltd. 1.80%

Voltas Ltd. 1.69%

Indraprastha Gas Ltd. 1.65%

AU Small Finance Bank Ltd. 1.61%

Apollo Hospitals Enterprise Ltd. 1.53%

MRF Ltd. 1.52%

Tata Global Beverages Ltd. 1.48%

Above index constituents and statistics are as on Dec 31, 2019. Data source: www.nseindia.com.

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 positions in the sector(s)/stock(s).

• Represents the next 150 companies (ranked 101-250) based on full market capitalisation from Nifty 500 Index

• Index is computed using free float market capitalisation method

• Index is re-balanced on semi-annual basis i.e. January and July

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Diverse Sectoral Allocation:

0 5 10 15 20 25 30

Telecom

Media & Entertainment

Textiles

Metals

Cement

Fertilisers & Pesticides

Chemicals

Services

Healthcare Services

Construction

IT

Automobile

Pharma

Energy

Industrial Manufacturing

Consumer Goods

Financial Services

Nifty Midcap 150 Index Past Performance

Nifty Midcap 150 Index has outperformed the broad market indices over the long run

Data as on Dec 31, 2019. Data source: MFI Explorer. Figures in the chart are rebased to 100. Past performance may or may not be sustained in the future. The Total Return Variant of the Index has been used. The performance

figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme.

MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html

Rebased t

o R

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Nifty 50 TRI Nifty 500 TRI Nifty Midcap 150 TRI

Nifty Midcap 150 Index Past Performance

Nifty Midcap 150 Index had given better risk adjusted returns over a period of 7 and 10 years.

Index Nifty Midcap 150 TRI Nifty 500 TRI

Period Returns (%) Risk Adjusted Returns Returns (%) Risk Adjusted Returns

1 Year 2.9% -0.06 9.1% 0.68

3 Year 9.9% 0.72 12.9% 1.12

5 Year 10.3% 0.61 8.5% 0.67

7 Year 15.0% 0.90 12.5% 0.87

10 Year 12.5% 0.73 10.3% 0.66

Returns are as on December 31, 2019. Data source: MFI. Past performance may or may not be sustained in the future. The Total return variant of the Index has been used. Returns more than 1 year are CAGR. Risk Adjusted

returns are calculated by dividing the returns of the respective periods with the Annualized standard deviation. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the

Scheme. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html 8

Valuation: Large caps and Midcaps

Data as on December 31, 2019. Source : Nseindia.com

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Pric

e t

o E

arnin

gs R

atio

of

the indic

es

Since the historic divergence in 2017, the valuation gap has narrowed and converged, providing an attractive entry point for

allocation to midcaps

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Nifty 100 P/E Nifty Midcap 150 P/E

Recent inclusions from Mid cap to Large cap Universe

Data as on December 31, 2019. Source : Nseindia.com

The 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 positions in the stock(s). 10

Below are a few companies that have graduated from Mid cap universe to Large cap universe since 2016

Mid Cap

Large Cap

Havells India Ltd.

Grasim

Industries Ltd. Biocon Ltd.

Avenue Supermarts

Ltd.

Bajaj Finance

Ltd.

Hindustan Zinc

Ltd.

Nestle India Ltd. Divi’s Laboratories

Ltd.

Bandhan Bank Ltd.

Why invest in ICICI Prudential Midcap 150 ETF

Access to probable contenders for promotion

to large caps which may lead to value

unlocking

Midcaps have corrected since achieving

historic highs in January 2018 making the

current phase an attractive entry point

Outperformance against broader market

indices over the period of time.

Access to entire mid cap companies

universe with a minimum investment of 1

unit on the exchange.

Opportunity to diversify equity investments

across various sectors

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ICICI Prudential Midcap 150 ETF

NFO Period January 15, 2020 – January 20, 2020

RTGS and transfer cheques Till end of business hours on January 20, 2020

Switches Switches are not allowed

Minimum Application Amount during the NFO Rs.5,000/- (plus in multiple of Re.1 thereafter)

Benchmark Nifty Midcap 150 TRI

Fund Manager Kayzad Eghlim

Basket size^ 35,000 units

Listing Units will be listed on NSE & BSE.

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^It is applicable post NFO and on investing with AMC directly. It is to be distinctly understood that the permission given by NSE/BSE should not in any way be deemed or construed that the Scheme Information Document (SID) has

been cleared or approved by NSE/BSE nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the NSE/BSE.

Riskometer and Disclaimers

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

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.

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.

• Long Term wealth creation

• An Exchange Traded Fund that aims to provide returns that closely correspond to the returns provided by Nifty Midcap 150 Index,

subject to tracking error.

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

ICICI Prudential Midcap 150 ETF is suitable for investors who are seeking:*

Moderate

LOW HIGH

Investors understand

that their principal will

be at moderately high

risk

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