An Open-Ended Equity Scheme following Pharma, Healthcare, Diagnostic and allied theme.

Scheme Details of ICICI Prudential Pharma Healthcare and Diagnostics Fund

Investment Objective of ICICI Prudential Pharma Healthcare and Diagnostics Fund

To generate long-term capital appreciation by creating a portfolio that is invested in equity and equity related securities of pharma, healthcare, hospitals, diagnostics, wellness and allied companies.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

*Source: Scheme Information Document

(Learn how to read the Scheme Information Document here.)

Is ICICI Prudential Pharma Healthcare and Diagnostics Fund for you?

ICICI Prudential Pharma Healthcare and Diagnostics Fund (IPPHDF) is an open-ended equity fund following pharma healthcare and allied theme.

Scheme’s primary investment objective is long-term wealth creation. And to achieve this objective it aims to invest upto 100% of its net assets in equities of companies in pharma and allied sector.

As per the scheme mandate healthcare comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment.

Thematic Funds invest in stocks from one particular common theme. They are growth-oriented equity schemes that aim at capital appreciation by investing in a set of say 3-4 sectors that are closely related to one particular theme.

For example, healthcare funds will invest in equities of pharmaceutical companies, hospitals, diagnostics, wellness and so on.

Being a thematic fund, the fortune of the fund lies on the overall performance of the theme. Hence, consider your risk appetite before you invest. IPPHDF is a high-risk proposition like any other sector fund.

Hence, ICICI Prudential Pharma Healthcare and Diagnostics Fund is suitable only for investors with high risk appetite and investment horizon of more than 5 years.

Asset Allocation of ICICI Prudential Pharma Healthcare and Diagnostics Fund

The asset allocation of ICICI Prudential Bharat Consumption Fund under normal circumstances will be as under:

Instruments	Indicative allocations (% of total assets)		Risk Profile High/Medium/Low
	Minimum	Maximum
Equity & Equity related instruments of pharma, healthcare, diagnostics, wellness and allied companies.	80	100	High
Equity & Equity related instruments of other than pharma, healthcare, diagnostics, wellness and allied companies.	0	20	Medium To High
Debt, Units of Mutual Fund schemes, Money market instruments, Cash & Cash Equivalents	0	20	Low to Medium

The Scheme may also take exposure to:

• Derivative instruments upto 50% of the Net assets of the Scheme
• ADRs/ GDRs/ Foreign Securities/ Overseas ETFs upto 50% of Net assets of the Scheme
• Securitized Debt upto 50% of debt portfolio
• Stock Lending upto 20% of its Net assets. The Scheme shall also not lend more than 5% of its net assets to any counter party

(Source: Scheme Information Document)

Investment Strategy Of ICICI Prudential Pharma Healthcare and Diagnostics Fund

The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both equity as well as debt markets. The Fund manager can also take aggressive calls on the market by going upto 100% in equity at any point of time or any other appropriate ratio depending upon his view.

The allocation between debt and equity will be decided based upon the prevailing market conditions, macro- economic environment the performance of the corporate sector, the equity market and other considerations.

Equity Asset Allocation

To achieve its primary objective of long-term capital appreciation the fund is mandated to invest 80% - 100% of its net assets into equity and equity related instruments of the healthcare theme. And around 0% - 20% of its net assets into equities other than healthcare theme.

The Scheme may invest in companies forming part of S&P BSE Healthcare Index or even stocks outside the index.

Debt Asset Allocation

The fund is mandated to invest 0 - 20% of its net assets into fixed income securities. The AMC aims to identify securities, which offer optimal levels of yield/return considering risk-reward ratio. An appropriate mix of debt and money market instruments will be used to achieve this.

Debt securities will be evaluated thoroughly in terms of credit risk by the risk management team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer.

Fund Managers for ICICI Prudential Pharma Healthcare and Diagnostics Fund

ICICI Prudential Pharma Healthcare and Diagnostics Fund will be managed by Mr Ihab Dalwai and the overseas investments will be managed by Ms Priyanka Khandelwal.

Mr Ihab Dalwai is currently an Investment Analyst in MF Equity, sub - department of Investments. He is a Chartered Accountant and Graduate in Commerce. He has been associated with ICICI AMC since April 04, 2011.

Other Schemes managed by Mr Dalwai are ICICI Prudential Multi-Asset Fund, ICICI Prudential Infrastructure Fund, ICICI Prudential Balanced Advantage Fund and ICICI Prudential Value Fund - Series 15.

Ms Priyanka Khandelwal is joint manager of this fund looking after the investments into foreign securities. She is a B. Com graduate, Chattered Accountant, Company Secretary and CFA – Level 1 cleared.

Other schemes managed by Ms Khandelwal are ICICI Prudential Global Stable Equity Fund, ICICI Prudential US Bluechip Equity Fund and also looks after investments for schemes which has a mandate to make overseas investments.

Fund Outlook of ICICI Prudential Pharma Healthcare and Diagnostics Fund

It is clear on evaluating the fund’s objective and investment strategy that scheme will have exposure of upto 100% of its net assets into equity and equity related instruments in the healthcare and pharma sector.

The scheme aims to benefit from the pharma industry as whole. It aims to tap the benefit of the Indian Pharmaceuticals market which is the 3^rd largest in terms of volume and 13^th largest in terms of value. Furthermore healthcare has become one of India‘s largest sectors - both in terms of revenue and employment.

The scheme being theme specific will be largely affected by the risks associated with the pharma, healthcare, hospitals, diagnostics, wellness and allied sector.

Investment in the scheme carries the non-diversification risk of the portfolio due to the investment universe limited to theme. There could be instances when the portfolio might have an unusually high exposure to a few stocks.

Hence, stock selection within the sector will be limited. The portfolio construction will be concentrated, thereby giving the miss to the most important benefit of investing in MFs – Diversification.

Therefore, the fortune of the fund will be totally dependent on the performance of pharma, healthcare and diagnostics sector.

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About the Company including business activity

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.

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Details of associates

1. Money Simplified Services Limited;
2. PersonalFN Insurance Services India Limited ;
3. Equitymaster Agora Research Private Limited;
4. Common Sense Living Private Limited;
5. Quantum Advisors Private Limited;
6. Quantum Asset Management Company Private Limited;
7. HelpYourNGO Private Limited;
8. HelpYourNGO Foundation;
9. Natural Streets for Performing Arts Foundation;
10. Primary Real Estate Advisors Private Limited;
11. Rahul Goel;
12. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest
 

1. Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company, except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF and our associates has financial interest in the subject company.
2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS is also at arm's length and as per prevailing market practices.
    

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5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report
    

General disclosure

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Subject Company means Mutual Fund Schemes

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Quantum Information Services Pvt. Ltd. Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com CIN: U65990MH1989PTC054667

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