ICICI Prudential

Alpha Low Vol 30 ETF(An open-ended Index Exchange Traded Fund tracking Nifty Alpha Low-Volatility 30 Index)

New Fund Offer Opens on: August 03, 2020

New Fund Offer Closes on: August 10, 2020

What is an ETF?

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

Equity ETFs Debt ETFs Commodity ETFs

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 an index fund 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

2

What are the benefits offered by ETFs?

Trading at real time NAV

Transparency in

holdings and price

Adequate liquidity with

AMC & on stock exchange

Index is based on research

and back tested data

Periodic portfolio

rebalancing

Provides diversification

benefits

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EPFO’s apex decision making body is considering to increase investments in equity ETFs to 15% of the

investible deposits. The major contribution ETF AUM is by EPFO.

Growth of ETFs in India

Indian ETF industry has seen rapid growth in last 4 years.

Recent investments in ETFs:

Data as on June 30, 2020. Data Source: MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit

http://www.icraonline.com/legal/standard-disclaimer.html. EPFO: Employee Provident Fund Organisation.4

Investing based on Style-Factors

Exposure to only one factor

Single factor based investing

The above mentioned list of factors is not exhaustive.

Exposure to a combination of more

than one factor

Multi-factor based investing

LOW

VOLATILITY

ALPHA

QUALITYVALUE

VALUE

ALPHA

LOW

VOLATILITYQUALITY

03

01

0204

5

More About The Multi-Factor Index Strategy

Offers the best of two worlds in a

transparent, rule-based and cost

effective manner

Provides exposure to a combination

of factors

Can exhibit lower performance

swings

Counters the impact of cyclicality of

single-factor indices.

Multi-factor

Index Strategy

Is A SMART

Beta Strategy

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Aim For Growth + Stability

A combination of these two factors can provide smooth investment experience along

with diversification benefits

ALPHA

Excess Returns

over the normal

returns

AIM FOR

GROWTH +

STABILITY

LOW VOLATILITY

Less price

fluctuation than

other stocks in

universe

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Presenting Nifty Alpha Low Volatility 30 Index

Nifty Alpha Low Volatility 30 Index - Methodology

UNIVERSE

From NIFTY 100 &

NIFTY Midcap 50

NO. OF CONSTITUENTS

30 Stocks

WEIGHT DERIVATION

Alpha (50%) & Low Volatility

(50%) Factor Scores

STOCK CAP

Individual Stock

Weight Capped At 5%

REBALANCING

Semi-Annually

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Nifty Alpha Low Volatility 30 Index Details

Top 10 Index Constituents Sectoral Allocation(%)

Securities Weightage(%)

Nestle India Ltd.

Dr. Reddy's Laboratories Ltd.

Divi's Laboratories Ltd.

Dabur India Ltd.

Colgate Palmolive (India) Ltd.

Marico Ltd.

Asian Paints Ltd.

MRF Ltd.

Hindustan Unilever Ltd.

Berger Paints India Ltd.

4.64

4.37

4.30

4.28

4.09

3.95

3.84

3.79

3.70

3.45 3.15

3.33

6.74

7.65

9.01

9.30

24.63

36.19

CEMENT & CEMENT

PRODUCTS

CHEMICALS

AUTOMOBILE

POWER

OIL & GAS

IT

PHARMA

CONSUMER GOODS

Above index constituents and statistics are as on June 30, 2020. 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).

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Mega cap and Future Contenders

Representation of various Indices

in Top 10, 11-20 and 21-30 stocks

Allocation to stocks of various

indices

Above index constituents and statistics are as on June 30, 2020. 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).

The above charts exhibit how the Nifty Alpha low-Volatility 30 Index moves away from assigning weights based

on market capitalization and instead considers their relevancy to factors

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Stock no. 21 to 30

Calendar Year Returns

NIFTY Alpha Low

Volatility 30 TRINifty 100 TRI S&P BSE 500 TRI Nifty 50 TRI

2010 31% 19% 18% 19%

2011 -12% -25% -26% -24%

2012 35% 33% 33% 29%

2013 16% 7% 4% 7%

2014 49% 35% 39% 33%

2015 14% -1% 0% -3%

2016 9% 5% 5% 4%

2017 45% 33% 38% 30%

2018 4% 3% -1% 6%

2019 5% 11% 9% 13%

2020 (YTD) -8% -8% -9% -15%

NIFTY Alpha Low

Volatility 30 TRI

has outperformed

the other indices

8 out of 10 times

till 2019.

Data as on July 22, 2020. 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.

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Growth of Rs.100

Nifty Alpha Low Volatility 30 Index has outperformed the broad market indices over the long run

Re

based

to

Rs.1

00

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

NIFTY Alpha Low Volatility 30 TRI Nifty 100 TRI Nifty 50 TRI S&P BSE 500 TRI

Data as on July 22, 2020. 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

12

403

197

211

218

Performance

Historically, Nifty Alpha Low Volatility 30 Index has given better risk adjusted returns over the long period.

CAGRNIFTY Alpha Low Volatility

30 TRINifty 100 TRI Nifty 50 TRI S&P BSE 500 TRI

1 year 0.76% -0.69% -0.78% -1.94%

3 years 18.93% 13.74% 16.48% 4.76%

5 years 9.74% 6.56% 6.53% 4.91%

10 years 15.78% 8.97% 8.74% 7.02%

Risk

Adjusted

Returns

NIFTY Alpha Low Volatility

30 TRINifty 100 TRI Nifty 50 TRI S&P BSE 500 TRI

1 year 0.03% -0.02% -0.03% -0.07%

3 years 1.10% 0.70% 0.82% 0.25%

5 years 0.62% 0.37% 0.36% 0.28%

10 years 1.12% 0.52% 0.50% 0.42%

Returns are as on July 22, 2020. 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

13

Rolling Returns

5 YEARS ROLLING RETURN

Since 01-April-2005 (First Observation on 01-April-2010) till 22-July-2020

Total Number of Observations: 2558

Returns are as on July 22, 2020. 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 are in CAGR terms.

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

ParticularsNIFTY Alpha Low

Volatility 30 TRINifty 100 TRI Nifty 50 TRI S&P BSE 500 TRI

Minimum 4.1% -0.7% -1.0% -2.9%

Maximum 28.4% 24.4% 24.3% 22.0%

Average 18.8% 11.8% 11.2% 10.1%

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Why invest in ICICI Prudential Alpha Low Vol 30 ETF

It intends to counter the cyclicality of

single factor index strategy

Provides exposure to a portfolio of

stocks selected based on top

combination of Alpha and Low Volatility

Provides investors a choice to take

exposure to multiple factors through a

single index product

Opportunity to diversify equity

investments across various sectors

Opportunity to invest across large and

top 50 mid capitalization stocks

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ICICI Prudential Alpha Low Vol 30 ETF

NFO Period

New Fund Offer Opens on: August 03, 2020

New Fund Offer Closes on: August 10, 2020

RTGS and transfer cheques Till end of business hours on August 10, 2020.

MICR cheques Till the end of business hours up to August 06, 2020.

Switches Switches are not allowed

Minimum Application Amount during the

NFORs.5,000/- (plus in multiple of Re.1 thereafter)

Benchmark Nifty Alpha Low Volatility 30 TRI

Fund Manager Kayzad Eghlim

Basket size^ 18,000 units

Listing Units will be listed on NSE & BSE.

^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. 16

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 Alpha Low-Volatility 30 Index, subject to tracking error.

*Investorsshould consult their financial advisors if in doubt aboutwhether the product is suitable for them.

ICICI Prudential Alpha Low Vol 30 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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