ICICI Prudential Mutual Fund

Equity Market Outlook

Our Equity Valuations Index indicates that the valuations are not cheap and continue to remain in the neutral zone.

Equity Valuation Index

Data as on July 31,2025 has been considered. Equity Valuation Index(EVI) is aproprietary model of ICICI Prudential AMC Ltd. (the AMC) used for assessing over all equity market valuations. The AMC may also use this model for other facilities/features offered by the AMC. Equity Valuation index is calculated by assigning equal weights to Price-to-Earnings(PE), Price-to-Book(PB), G-Sec*PE and Market Cap to GDP ratio any other factor which the AMC may add/delete from time to time. G-Sec - Government Securities. GDP - Gross Domestic Product.

Key Takeaways

	India's fundamental attributes are robust and sustainable, including clean balance sheets, rising consumption, steady domestic demand, and fiscal prudence. Hence, the long-term structural story remains intact.
	Global macros at this point of time are more challenging which may impact global growth.
	Recent RBI actions like liquidity injection; key policy rate cuts, large dividend to the Govt. are positive for India’s business cycle. It may result in India growth and corporate earnings to pick-up.
	Investors with a long-term view can remain invested in equity markets. However, due to high valuations the fresh investments should be done in a prudent manner.
	To navigate market volatility, we recommend investing in: Hybrid & Multi Asset allocation schemes. staggered investment in large cap schemes or flexible investment mandate schemes.

Detailed Equity Update

Fixed Income Outlook

Our Debt valuation index suggests maintaining a cautious stance on duration due to evolving growth-inflation dynamics and global uncertainty.

Debt Valuation Index

Data as on July 31, 2025. Debt Valuation Index considers WPI, CPI, Sensex returns, Gold returns and Real estate returns over G-Sec yield, Current Account Balance, Fiscal Balance, Credit Growth and Crude Oil Movement for calculation. RBI - Reserve Bankof India

Key Takeaways

	Given a strong Q4FY25 growth print, and injection of monetary and fiscal stimulus measures, economic growth recovery may be quick and push us back into expansion mode.
	RBI monetary policy stance stays ‘’Neutral’’, aiming to balance economic support and inflation control.
	We have maintained defensive positioning on the yield curve, preferring the extreme shorter-end and extreme longer end as a barbell strategy while avoiding the belly of the yield curve.
	We recommend schemes like low duration, ultra-short duration, money market, short duration, banking and PSU, corporate bond, dynamic bond and credit risk funds in this period

Source: Data Source: RBI Monetary Policy Statement 2025-26 dated August 6, 2025, RBI Statement on Developmental and Regulatory Policies dated August 6, 2025

Detailed Fixed Income Update

For more details, contact your Relationship Manager/ Financial Advisor/ Mutual Fund Distributor: [ARN_NAME] , [ARN]

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DISCLAIMERS:

The stock(s)/sector(s) mentioned above do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in this stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme.

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The information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to buy or sell or solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US") and/or Canada or for the benefit of US persons (being persons falling within the definition of the term "US Person" under the US Securities Act, 1933, as amended) or persons residing in Canada.

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