1. Dividend Yield Equity FundDividend Yield Equity Fund
An Open-Ended Equity fund
NFO Period: April 25, 2014 to May 09, 2014

2. 2
Why Now?1
Dividend yield - Explained2
Why Dividend Yield strategy?3
Some opportunities in the current market4
ICICI Prudential Dividend Yield Equity Fund5
Contents

3. 3
• Election is an important event for the markets
• Past Experience on election results day
• Deployment strategy
Why now?

4. 4
• On 14 May and 17 May (two trading days post results), Sensex dropped by 16.56%
• Past experience shows that stocks that underperformed on the election result day –
gave good returns post elections.
Source: BSE, NSE, Returns are absolute. Past performance may or may not be sustained in future.
2004 - Election and Markets
Index Name 14th
May to 17th
May 2004 (%) 18th
May to 31st
Dec 2004 (%)
CNX Auto -14.61 38.53
CNX Bank Nifty -25.16 65.71
CNX Finance -23.32 60.25
CNX FMCG -13.52 39.74
CNX Infrastructure -23.43 64.54
CNX IT -15.59 67.44
CNX Metal -24.16 116.97
CNX Pharma -10.87 34.66
CNX Service -21.43 66.12

5. 5
• Between 15- 18 May (two trading days around results), Sensex gained 17.34% and hit
upper circuit twice.
• In 2009, the defensives which underperformed initially, outperformed in the ensuing
period.
Source: BSE, NSE, Returns are absolute. Past performance may or may not be sustained in future.
2009 - Election and Markets
Index Name 15th
May to 18th
May 2009 (%) 19th
May to 31st
Dec 2009 (%)
CNX Auto 15.03 68.12
CNX Bank Nifty 18.81 33.44
CNX Finance 19.49 31.04
CNX FMCG 8.66 27.55
CNX Infrastructure 19.15 3.24
CNX IT 12.43 73.59
CNX Metal 17.57 78.05
CNX Pharma 11.81 36.63
CNX Service 17.34 20.59

6. 6
Dividend yield - Explained

7. 7
Stock Returns – Price appreciation
and Dividend
Possible Returns From a Stock
Profits Generated by a Company
Dividend Paid Out
Dividend Yield
Dividend Distributed / Common Stock Price
Capital Appreciation
Reinvested in Business for Future Growth

8. 8
• Relatively more stable business models with a history of consistent profitability,
and a dividend payment track record
• Companies pay dividends after attaining a sustainable level of growth.
• Need to pay dividends tends to make the management more accountable to
shareholders and less prone to taking unwanted risks.
• The share price of these companies tends to display low volatility.
Characteristics of Dividend paying
companies

9. Why Dividend Yield strategy?
9

10. 10Source: www.nseindia.com. Past performance may or may not be sustained in future
• High Dividend yield can be a sign of undervalued markets.
• Markets rallied post 2003-04, when dividend yield of nifty was at all time high. Similar
trend was seen post 2008-09.
Dividend yield and Nifty
0
0.5
1
1.5
2
2.5
3
3.5
0
1000
2000
3000
4000
5000
6000
7000
8000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CNX Nifty Index Dividend Yield - CNX Nifty Index
Markets rally after dividend yields peak out

11. 11Source: Credit Suisse
• Volatility measured against annualized standard deviation (of Top 100 companies by
market cap of BSE) has been tangibly lower among companies that paid dividends
compared to those that did not distribute profits.
Share prices of Dividend paying companies
tend to be less volatile
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
0% 10% 20% 30% 40% 50% 60% 70%
Dividend Payout
Std. Deviation (ann.) v/s Dividend PayoutStandard Deviation
High dividend
pay-out companies
have low volatility

12. • The compounding effect of dividend income over time has contributed equity total return.
12Source: www.nseindia.com
Dividends are an Important Source of
Total Return
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2007 2008 2009 2010 2011 2012 2013
CNX Div Opportunities Index CNX Nifty Total Return Index

13. 13Source: www.nseindia.com. Past performance may or may not be sustained in future
• CNX Dividend Opportunities Index tend to outperform in up-trending and down-trending
markets.
Performance in up and down markets
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2007 2008 2009 2010 2011 2012 2013
CNX Nifty CNX Dividend Opportunities

14. 14Source: Motilal Oswal Securities Ltd
Globally dividend yield indices have
outperformed.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
S&P 500 Dividend Aristocrats Index S&P 500
Index values rebased to 1000

15. 15
Dividends remain a key driver of
total return globally.
0
50
100
150
200
250
300
350
400
MSCI EUROPE MSCI
AUSTRALIA
MSCI USA MSCI JAPAN MSCI AC ASIA x
JAPAN
Dividend return (%) Price return (%)
Source: Kotak Securities; Bloomberg
Returns since 1998

16. 16
Some opportunities in the current market

17. 17
Source: Kotak Securities
This illustration is to explain how a dividend yielding company has performed on a long term basis. This is to explain the concept of dividend yielding company as a suitable
investment avenue. It is necessary to note that there can be many other factors that can have impact on the performance of the company in the stock market. Past
performance may or may not be sustained in future. The stock/sector mentioned above does not constitute any recommendation by ICICI Prudential Mutual Fund/AMC.
Some opportunities in the current market
• In FY09, a high dividend yield signalled an ensuing rise in the stock’s market cap.
• Current valuations provides good potential opportunity.
A mid-cap IT company
Market Cap (INR cr) Dividend Yield (%)
Dividend Yield Market Cap
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

18. Source: Kotak Securities
18
This illustration is to explain how a dividend yielding company has performed on a long term basis. This is to explain the concept of dividend yielding company as a suitable
investment avenue. It is necessary to note that there can be many other factors that can have impact on the performance of the company in the stock market. Past
performance may or may not be sustained in future. The stock/sector mentioned above does not constitute any recommendation by ICICI Prudential Mutual Fund/AMC.
Some opportunities in the current market
• In FY 03, dividend yield of a PSU bank was more than 3%, post which the market cap
increased from Rs 2,700 cr to Rs 13,500 cr.
• Similar trend can be seen post 2009.
• There are ample stock picking opportunities available in the current market.
PSU Banks offer high dividend yieldMarket Cap (INR cr) Dividend Yield (%)
Dividend Yield Market Cap
-
1.0
2.0
3.0
4.0
5.0
6.0
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

19. 19
• Long term wealth creation solution
• An open ended equity fund that aims for growth by primarily investing in equity and equity related
instruments, which offer attractive dividend yield.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
HIGH RISK
(BROWN)
This product is suitable for investors who are seeking*:
(BLUE) investors understand that
their principal will be at low risk
(YELLOW) investors understand that
their principal will be at medium risk
(BROWN) investors understand that
their principal will be at high risk
Note: Risk may be represented as:
Dividend Yield Equity FundDividend Yield Equity Fund
An Open-Ended Equity fund
The Product

20. 20
• An open ended equity fund that aims to:
• Invest at least 80% of assets in companies that have dividend yield greater than the
dividend yield of CNX Nifty Index (last released /published by NSE), at the time of
investment.
• Identify high dividend stocks within the framework of valuations and fundamentals.
• Invest in high-quality companies with proven records of paying and growing dividends.
• Invest across market cap
About the fund

21. 21Source: Bloomberg
Dividend Yield Strategy can be broken down into:
Quality
• Disciplined companies generating good returns
• Strong market positions
• Stable cash-flows and
• Ability to increase dividends year after year.
Assets
• Strong physical asset base giving more pricing control.
• Ability to increase dividend across different economic environments
Rapid Growth
• Rapid structural growth by virtue of their geography, industry or
product line.
• Good capital discipline
Our Framework

22. 22
Source: Motilal Oswal Securities Ltd
• Companies with good dividend policies tend to perform well in up and down markets.
• The company was consistently increasing its pay-out ratio during 2004-09.
• The increase in dividends was factored in the stock price by the market participants.
This illustration is to explain how a dividend yielding company has performed on a long term basis. This is to explain the concept of dividend yielding company as a suitable
investment avenue. It is necessary to note that there can be many other factors that can have impact on the performance of the company in the stock market. Past
performance may or may not be sustained in future. The stock/sector mentioned above does not constitute any recommendation by ICICI Prudential Mutual Fund/AMC.
Dividend Yield Strategy - QUALITY
FMCG companyMarket Cap (INR cr) Dividend Pay-out %
0
20
40
60
80
100
120
0
50000
100000
150000
200000
250000
300000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Payout Market Cap

23. 23
• Companies with strong physical asset base have the ability to pay consistent dividends
across different economic environments.
Source: Kotak Securities
This illustration is to explain how a dividend yielding company has performed on a long term basis. This is to explain the concept of dividend yielding company as a suitable
investment avenue. It is necessary to note that there can be many other factors that can have impact on the performance of the company in the stock market. Past
performance may or may not be sustained in future. The stock/sector mentioned above does not constitute any recommendation by ICICI Prudential Mutual Fund/AMC.
Dividend Yield Strategy - ASSETS
Oil & Gas company
Market Cap (INR cr) Dividend Pay-out %
0
5
10
15
20
25
30
35
40
45
0
50000
100000
150000
200000
250000
300000
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Payout Market Cap

24. Source: Kotak Securities
24
• These companies can benefit from rapid structural growth by virtue of their geography,
industry or product line.
• Because of good capital discipline, these companies could generate strong cash flows
allowing dividends to increase at a swift rate.
This illustration is to explain how a dividend yielding company has performed on a long term basis. This is to explain the concept of dividend yielding company as a suitable
investment avenue. It is necessary to note that there can be many other factors that can have impact on the performance of the company in the stock market. Past
performance may or may not be sustained in future. The stock/sector mentioned above does not constitute any recommendation by ICICI Prudential Mutual Fund/AMC.
Dividend Yield Strategy - RAPID GROWTH
Large cap IT companyMarket Cap (INR cr) Dividend Pay-out %
Payout Market Cap
0
5
10
15
20
25
30
35
40
45
50
0
50000
100000
150000
200000
250000
300000
350000
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

25. 25
Portfolio
Investable Universe
(Attractive Dividend Yield Companies*)
Data Integrity Screens
• Industry Trends • Growth Prospects
• Track Record and Consistency of Dividend Payments
Valuation & Fundamental verification
• Business Fundamentals • Quality of Management
Recurringprocess
Daily Risk control
*Attractive dividend yield means dividend yield greater than the dividend yield of CNX Nifty Index, last released /published by NSE, at the time
of investment.
Investment Approach

26. Type of scheme An open ended equity scheme
Investment Objective The investment objective of the Scheme is to provide medium to long term
capital gains and/or dividend distribution by investing in a well diversified
portfolio of predominantly equity and equity related instruments, which
offer attractive dividend yield. However, there can be no assurance that the
investment objectives of the scheme will be realized.
Options Direct Plan – Growth and Dividend (Reinvestment & Payout Option)
Regular Plan – Growth and Dividend (Reinvestment & Payout Option)
Minimum Application Amount Rs 5,000 (plus in multiple of Rs.1)
Min. Add. Application Amount Rs 1,000 (plus in multiple of Re.1)
Min. Redemption Amount Rs 500 (plus in multiple of Re.1)
Entry Load Not Applicable
Exit Load For investments upto 18 months – 1% of applicable NAV
Benchmark Index CNX Dividend Opportunities Index
Fund Manager#
Mr. Mrinal Singh and Mr. Vinay Sharma
26
#Ashwin Jain will be the fund manager for overseas investments
Scheme Features

27. 27
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
All figures and other data given in this document are as on 31st March 2014 unless stated otherwise. The same may or may not be relevant at a future date. The
AMC takes no responsibility of updating any data/information in this material from time to time. The information shall not be altered in any way, transmitted to, copied
or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management
Company Limited.
Prospective 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.
Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd. (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
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unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc.
ICICI Prudential Asset Management Company Limited (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.
Further, the information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision
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Disclaimers