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ICICI Prudential PMS Flexicap Strategy

Investment Objective:ICICI Prudential PMS Flexicap Strategy (the Flexicap Strategy) is a diversified equity portfolio that endeavours to achieve long term capital appreciation and generate returns by investing across market capitalisations.

The Investments are targeted at long-term capital appreciation and follows GARP (Growth at Reasonable Price) Philosophy. The focus is on identifying stocks with attractive growth prospects that are available at reasonable valuations.

The Flexicap Strategy comprises a ‘Core’ and ‘Satellite’ portfolio strategy. The Core portfolio could be 60% - 70% is predominantly targeted towards sectors which are value on an absolute and relative basis. The Satellite portfolio shall comprise securities which follow ‘Growth at Reasonable Price’ strategy. The Satellite portfolio shall be used opportunistically to book profits and increase weight of Core portfolio.

The Flexicap Strategy follows a mix of a top-down and a bottom-up approach. The top-down approach is used to identify key macroeconomic and sectoral themes and subsequently helps to identify stocks that are expected to benefit from the same. A bottom-up approach is applied based on the belief that there are always individual companies that provide attractive investment opportunities under various industries and market conditions. The prominence given to the top-down vs. bottom-up approach would vary from time to time depending on macroeconomic, sectoral and company specific fundamentals.

The Portfolio Manager would aim to give weightage to other factors like effective management, scalable businesses and pricing power of the company, sustainable competitive edge and visible brands, while selecting investment ideas.

The Portfolio Manager aims to maintain a diversified portfolio by investing in a basket of stocks across market capitalization, without any undue concentration in any stock or sector.

The Flexicap Strategy’s multi-cap investment approach, based on valuation gaps between large, mid and small cap stocks, may facilitate participation in India’s growth story and at the same time, the Portfolio manager aims to benefit from diversification.

The Flexicap Strategy aims to follow a buy and hold strategy with and aim to fully capitalise on the true underlying value of the business potential, which is expected to get unlocked over a period of time. However, the Flexicap Strategy may be actively managed to take advantage of certain market trends with an endeavour to enhance returns.

The Portfolio Manager selects equity and equity related securities of companies from the listed universe space across market capitalisation which fit into the investment strategy of the portfolio. The Portfolio Manager uses a blend of top-down and bottom-up approach for stock selection. The top-down approach helps to identify key macro-economic and sectoral themes for stock selection. The bottom-up approach helps to identify companies that are believed to be attractive investment opportunities in various industries and market conditions.