Exide Life Insurance Fact Sheet 3-4. Exide Life Insurance Investment Philosophy 5. Market Review & Outlook for Markets 7-10

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2 Contents Exide Life Insurance Fact Sheet 3-4 Exide Life Insurance Investment Philosophy 5 Market Review & Outlook for Markets 7-10 Risk-Return Profile of Funds 11 Fund Fact Sheet - Exide Life Debt Fund Fund Fact Sheet - Exide Life Secure Fund Fund Fact Sheet - Exide Life Preserve Fund Fund Fact Sheet - Exide Life Balance Fund Fund Fact Sheet - Exide Life Active Asset Allocation Fund Fund Fact Sheet - Exide Life Growth Fund Fund Fact Sheet - Exide Life Guaranteed Growth Fund Fund Fact Sheet - Exide Life Prime Equity Fund Fund Fact Sheet - Exide Life Mid Cap Fund Fund Fact Sheet - Exide Life Equity Fund Fund Fact Sheet - Exide Life Guaranteed NAV Fund Fund Fact Sheet - Exide Life Pension Debt Fund Fund Fact Sheet - Exide Life Pension Preserver Fund Fund Fact sheet - Exide Life Pension Equity Fund Fund Fact Sheet - Exide Life Prime Equity Pension Fund Fund Fact Sheet - Exide Life Pension Liquid Fund Fund Fact Sheet - Exide Life Group Debt Fund Fund Fact Sheet - Exide Life Group Secure Fund Fund Fact Sheet - Exide Life Group Balance Fund Fund Fact Sheet - Exide Life Group Growth Fund Glossary 67 Annual Fund Review 02

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5 Exide Life Insurance Investment Philosophy Our policyholders are investing their hard earned money with specific objectives of protection and longer-term investment returns. Two of the basic expectations of our customers are thus, Safety and Returns, and we need to balance both these expectations in terms of the asset-allocation, underlying investments, and subsequent monitoring. These customer expectations are an important consideration in our investment management philosophy and strategy. The underlying investment philosophy is to ensure safety and deliver consistent, stable returns over the longer-term, for a given level of risk. This is achieved with a well-defined and disciplined investment process. There is an emphasis on compliance and robust risk-management in the investment process, both pre-investment and postinvestment. As a company and as an investment team, we focus on the long-term. Investment Team Profile Shyamsunder Bhat, Chief Investment Officer (CIO) has an experience of 22 years in fund management. He joined Exide Life Insurance in September Prior to joining Exide Life Insurance, Shyam has worked with two mutual fund companies - initially as a part of the start-up team in 1994 at Tata Asset Management Ltd. for 10 years ( ), followed by Principal PNB Asset Management, where he then worked for more than 6 years ( ). Shyam is an Electrical Engineer from VJTI (Mumbai) and a post-graduate in Management (M.M.S. Finance) from Narsee Monjee Institute of Management Studies (Mumbai). SHYAMSUNDER BHAT Chief Investment Officer(CIO) Shobit Gupta, Senior Vice President (Investments), Fixed Income, has over 18 years of experience in Fixed Income and Foreign Exchange markets. He has worked extensively in the field of Foreign exchange and Interest Rate derivatives at ABN AMRO Bank and has handled Fixed Income portfolios at Asset Management companies like Kotak Mahindra Mutual Fund and Principal Asset Management Co. He is a Graduate in Economics, Maths, Statistics, PGDBA from ICFAI Delhi and CFA from ICFAI Hyderabad and CFA Institute - USA. SHOBIT GUPTA Senior Vice President (Investments) - Fixed Income Pranav Parekh Fund Manager - Fixed Income portfolio Sumeet Hinduja Fund Managers - Equity portfolio Annual Fund Review 05

6 Risk Control Risk management is an integral part of our investment process. The company has well-defined risk policies and processes covering both portfolio and process risk. Further, the company has systems and software in place to monitor compliance of Regulations and Investments norms on a daily basis. The operating policy for each asset class defines the framework within which the investments are made in specific funds. All our current equity investments are in securities within the BSE-500/CNX500 index, and predominantly from within the BSE-200 index. The portfolio is well-diversified across companies and industries as a risk-mitigation measure. The debt portfolio of the company is mostly invested in assets of the highest credit quality i.e. Government of India securities, and AAA rated securities issued by blue-chip companies, and finally, a small exposure to AA rated securities. The key risk management policy adopted is maintaining high standards of credit quality of the portfolio and maintaining optimum duration depending on the market outlook. The exposure to stocks and duration of bonds changes over time based on an in-depth analysis of the factors affecting these markets. Finally, a reasonable level of liquidity is maintained within the respective funds so as to enable smooth redemption process on account of switches or claims, in line with the liquidity norms prescribed in our investment policy. Annual Fund Review 06

7 Indian Economy : Review And Outlook India s GDP growth decelerated in FY17 to 7.1% yoy, lower than 7.9% and 7.2% in the prior two years. The growth in FY17 was driven primarily by Government consumption, activities linked to the infrastructure sector and services. GVA also went down from 7.9% to 6.6% yoy. The sharp deceleration in fixed capital formation is a concern. The fiscal deficit for FY17 was within the targeted 3.5% (from 3.9% in Fy16), and is projected to reduce further to 3.2% in Fy18. GDP and GVA are expected to rise further in Fy18, given that FY17 had effect of demonetisation. However the nominal GDP growth is likely to rise to double digits. On an annual basis, there was a 4.9% in Industrial Production in Fy17 vs 3.4% growth in Fy16. Consumer price inflation averaged 4.5% in Fy17 vs an average of 4.9% in Fy16. Core inflation during Fy17 stood at 4.0% down from 4.7% in Fy16. Wholesale price inflation bounced back to positive territory in FY17, with an annual figure of 1.7% for Fy17 (as compared to annual -2.5% in FY16). India s trade deficit fell further 11% to US $ billion, primarily due to moderate crude prices and appreciating Rupee and it is at lowest level in last 9 years. The current account deficit narrowed by 32% to US$15bn (0.7% of GDP) in Fy17, and is the lowest since Fy08. The Indian Rupee strengthened by approximately 1% for the year and the forex reserves rose by 2% to $ 370 billion during the year. Annual Fund Review 07

8 Indian Economy : Review And Outlook Macro-economic Indicators: The Macro Economic Indicators for the last 12 months are as shown: Economic Indicators April, 16 May, 16 Jun, 16 July, 16 Aug, 16 Sept, 16 Oct, 16 Nov, 16 Dec, 16 Jan, 17 Feb, 17 Mar, 17 Trade Balance (US$ billion) (4.9) (6.3) (8.1) (7.7) (7.8) (8.9) (11.1) (13.4) (10.5) (9.6) (7.7) (10.5) Exports (US$ billion) Exports (YoY) (5.6) (1.6) 1.1 (6.9) Imports (US$ billion) Imports (YoY) (23.0) (13.4) (8.5) (19.3) (13.6) (0.9) Foreign Exchange Reserves (US$ billion) Rs/US$1 (period average) M1 (YoY) (12.3) (18.6) (13.7) (10.5) 3.6 M3 (YOY) Bank Loans (Non-food credit, YOY) Deposit Growth Rate (YoY) day T-Bill Yield day T-Bill Yield yr Government Bond Yield Industrial Production Manufacturing (% YOY) Consumer Durable Goods (4.3) (5.0) (8.0) (3.9) Primary Goods (1.0) Capital Goods (7.5) (4.7) 5.4 (6.1) (0.2) (2.0) 9.6 Intermediate Goods Consumer Price Index (YoY) Wholesale Price Index (YoY - All commodities) (1.1) (0.9) (0.1) Equity markets review and outlook After an 8.9% correction during the financial year , the Nifty rallied close to 19% during the financial year The rally in the equity markets was aided by continuing domestic liquidity in terms of inflows into equities in general (and equity mutual funds in particular), and further fuelled by large FII buying, particularly in March. FIIs invested $8.5bn for the year, which exceeds their investment for 2 full calendar years 2015 and A prudent Union Budget, better than expected corporate results for the year inspite of the adverse impact of demonetization. a very strong mandate in State Elections and subsequently the passage of the GST Bills in Parliament, were factors influencing the strength in the equity markets. Wholesale Price Inflation turned positive during the year, and this, too, has benefitted the corporate earnings. Better than expected monsoons after two years of consecutive lower rains and implementation of the 7th Pay Commission wage hike recommendations has led to a revival in rural demand compared to weak demand last year. Global financial markets showed remarkable improvement in its macro data, with manufacturing indices of various countries seeing traction and steady upturn including that of China. The US Federal Reserve did raise interest rates twice in FY17 and is expected to do couple of more rate hikes in FY18. Policymakers in US are expected to gradually make a balance sheet adjustment which was welcomed by the markets globally. The IMF has raised global growth estimates to 3.5% from earlier 3.4% for calendar 2017, with estimates that India would be one of the fastest growing economies projecting it to grow at 7.2% this year. Inflows in domestic equity funds continued to be strong during most of the year, helped by demonetisation thereby creating surplus liquidity in the banking system and a continuing shift from physical to financial assets. Domestic mutual funds were net buyers to the tune of $ 2.5 bn during FY17, and have remained buyers for last three years. However, after remaining net sellers in FY16, Foreign Institutional Investors (FIIs) turned strong buyers to the tune of $8.5 bn in FY17 given the benign global markets and stable corporate earnings in India inspite of the temporary disruption caused by demonetization. The Indian Rupee appreciated by approximately 1% during the year, after facing a depreciation of over 6% in FY16. Foreign Direct Investment inflows hit an all-time high of $60.1 billion in , and this could partly be due to the easing of FDI limits by the Government. Annual Fund Review 08

9 Indian Economy : Review And Outlook While the earning results have yet to see any meaningful improvement in FY17, the results for the March 2017 quarter showed the initial signs of an uptrend, and this is expected to gather pace during the next financial year. FY17 began with hopes of an ever-elusive earnings recovery, backed by a consumption growth from an expected good monsoon, 7th Pay Commission implementation and improvements in macro-indicators. However, continued weakness in private capex cycle, absence of a broader pick-up in consumption and nonresolution of NPA issues in the banking sector played a spoilsport. Additionally, events like demonetization changed the setting mid-way, leading to a flattish earnings performance. India has a relative advantage over most other countries in terms of higher growth, reasonable deficits and a slower depreciation in the currency; and the revival in corporate earnings growth is likely to result in a better performance from equity markets in the next financial year. Global events which could influence our markets over the next few quarters include the pace of interest rate hikes by the US Federal Reserve, new US policies on taxation/outsourcing, followed by the trend in the US dollar vs global currencies. Concerns could stem from rising valuations and any global risk-off sentiment during the year, though India is likely to continue to be viewed favourably on a relative basis which could result in the downside being limited. The equity market performance for various periods ending March 31st, 2017 is shown in the table below. Indices March 31, Month Change 3-Month Change 6-Month Change 1-Year Change BSE Sensex (INR) % 11.24% 6.30% 16.88% BSE 100 (INR) % 13.21% 7.11% 21.17% Nifty (INR) % 12.07% 6.53% 18.55% CNX Midcap (INR) % 19.83% 11.57% 34.85% MSCI Europe # % 5.25% 11.32% 13.47% MSCI World # % 5.85% 7.42% 12.47% MSCI Emerging Mkt # % 11.15% 6.08% 14.53% # Changes in the index value are based on conversion to Rupee terms Performance of various equity indices during the year is shown in the graph below: 150 Equity Indices 140 Index Values (Rebased to 100) Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 CNX Midcap MSCI Emerging Markets MSCI World Nifty Debt Market Review and Outlook The Year FY17 started with a positive note on Union Budget sticking to its path of Fiscal Consolidation. CPI moderated to 4.8% in March from 5.3% in February, driven by lower food and fuel price inflation. This helped RBI to cut Repo rate by 25bps to 6.50% and take steps to boost liquidity. FII inflows were moderate on account of perception of risk from the BREXIT vote in UK & an impending second hike in interest rates by the Federal Reserve in the US. With falling CPI inflation,10y Gsec yields also started easing from 7.46% in March to 6.79% in October. There were events such as the appointment of the new RBI Governor, the demonetization and the US Presidential election which resulted in some degree of volatility in the market. A Monetary Policy Committee (MPC) was formed to manage the monetary policy, which did cut repo rates by 25bps to 6.25% on easing inflation. 10y AAA PSU corporate bond spreads hovered in the range of 55-65bps. Post the US Presidential election and the rise in global yields, the spreads rose towards 80bps. Post demonetization, growth fears and lower inflation expectations led to a 50 bps rally in bonds with 10y Gsec yield falling to 6.25% on expectation of further rate cuts. This movement was witnessed even after FIIs pulling out $6-7bln. However, RBI disappointed the market by keeping rates unchanged, accompanied by a hawkish commentary. This development, accompanied by a rise in global bond yields, caused a selloff in domestic bond market and yields rose from a year low of 6.18% to 6.60% within a month. The US Federal Reserve hiked rates by 25bps as expected, on stronger economic growth and better labour market. This was an indicator of the end of monetary stimulus globally. Annual Fund Review 09

10 Indian Economy : Review And Outlook India s external position has improved the twin deficit (Current Account Deficit and Trade Deficit). With Forex reserves rising to more than 361$billion, it provides the necessary cushion to the Indian Rupee (INR). India has successfully managed to fund the $30 bn dollar FCNR redemption while keeping the INR largely stable, despite the huge volatility in the international markets. Fy17 commenced with uncertain global events, but was an eventful one for fixed income. The 10-year benchmark gilt yield moved from 7.46% to 6.68% and the 10-year corporate bond spreads widened from 55bps to 82bps during the year. Though Q4 FY17 GDP growth ended with 6.1% partially due to the full reflection of the demonetization impact, there is an expectation that the GDP growth would recover back to 7-7.5% in FY18. CPI is expected to end FY18 in the range % as per RBI expectations. Given the structurally lower inflation, controlled fiscal deficit, higher liquidity and lower credit offtake and expectation of a 25-50bps rate cut during Fy18, we could continue to be in a falling interest-rate scenario in the current financial year, subject to global hurdles like Fed rate hike, rising oil prices and geopolitical tensions. The key debt market indicators are highlighted below : Key Indicators Indicator Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Inflation 1.65% 10.36% 9.68% 7.69% 5.65% 5.70% 5.25% 4.83% 3.89% NSE MIBOR 5.02% 5.47% 9.24% 11.99% 8.98% 8.53% 8.35% 9.00% 7.37% 91 Day Bill 4.50% 4.33% 7.31% 9.02% 8.02% 8.83% 7.94% 7.12% 5.78% 364 Day T Bill 5.50% 5.12% 7.64% 8.40% 7.79% 8.78% 7.72% 7.06% 6.10% 5 year G Sec 6.76% 7.50% 7.95% 8.60% 7.96% 8.86% 7.75% 7.43% 6.76% 10 year G Sec 7.01% 7.83% 7.99% 8.54% 7.96% 8.80% 7.74% 7.46% 6.68% 3 month CP P % 6.00% 6.00% 10.75% 9.22% 9.65% 8.76% 8.67% 6.61% 6 month CP P % 8.80% 6.50% 6.50% 10.63% 9.27% 8.68% 8.75% 6.96% 1 year CP P % 9.50% 7.25% 7.25% 10.88% 9.30% 8.71% 8.80% 7.24% 1 year AAA 9.90% 7.95% 6.70% 9.55% 9.86% 8.90% 8.40% 7.85% 6.80% 3 year AAA 9.45% 8.14% 7.90% 9.35% 9.67% 8.87% 8.34% 8.00% 7.23% 5 year AAA 9.45% 8.51% 8.50% 9.23% 9.55% 8.83% 8.31% 8.12% 7.40% 10year AAA 8.74% 8.80% 9.12% 9.49% 8.81% 9.60% 8.31% 8.31% 7.65% Performance of Debt Indices during the year is shown in the graph below: 120 Debt Indices 8.0% Index Values(Rebased to 100) Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar % 7.0% 6.5% 6.0% (Yield) Crisil Bond Index 10 Yr Gsec Yield Annual Fund Review 10

11 Risk Return Profile of Funds Exide Life Insurance offers a wide range of fund options catering to various risk-return appetite.you can invest either in equity, or in debt or in hybrid fund and even change your investment strategy. You can choose from these funds depending on your risk appetite, age, time horizon for important life stage goals like child education planning, retirement planning, etc. The risk return chart below helps you choose the right fund for your investment needs. High Risk Exide Life Prime Equity Fund Exide Life Midcap Fund Exide Life Equity Pension Fund* Exide Life Equity Fund* Exide Life Prime Equity Pension Fund* Risk Exide Life Balance Fund Exide Life Guaranteed NAV Fund Exide Life Growth Fund Exide Life Active Asset Allocation Fund Medium Risk Exide Life Secure Fund Exide Life Liquid Pension* Exide Life Preserver Fund Exide Life Preserver Pension* Exide Life Debt Pension Fund* Exide Life Debt Fund* Low Risk Return *Available for existing customers only subject to product terms and conditions Annual Fund Review 11

12 Exide Life Debt Fund Fund Profile: The fund seeks to generate income through an investment mix of high quality bonds and money market instruments. SFIN No: ULIF00218/10/04DEBT114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity : Debt : mn Net Current Assets : (3.29) mn Fund Manager: Debt : Mr.Pranav Parekh Asset Allocation (As approved by IRDAI) Fund Type % Debt and Debt related Instruments 100% Rating Profile of Debt Instruments AAA: 31.47% Fund Performance SOVEREIGN: 68.53% Period Fund Return Benchmark* 1 Month 1.24% 1.29% 6 Months 2.94% 3.36% 1 Year 11.52% 11.09% 2 Years 9.67% 9.66% 3 Years 11.77% 11.27% Since Inception 8.38% 7.29% *Benchmark : Crisil Composite Bond Index (100%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV 27.2 Sector Allocation Equity Sector Allocation % Others Debt Sector Allocation % Infrastructure finance Electricity gas steam and air conditioning supply Civil engineering 9.52 Financial & insurance 5.44 Housing 5.18 Unit Price Mar Asset Allocation (As on Mar 31st, 2017) Others: 4.39% Corporate Debt: 30.09% Gsec: 65.52% Modified Duration of Debt and Money Market Instruments 6.3 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 12

13 Exide Life Debt Fund Portfolio Holdings Corporate Debt-Holdings Amt (mn) % AUM 8.93 PGCIL 20 Oct % 8.65% PFC 28 Dec % 8.30% Rural Electrification Corporation Ltd 10 Apr % 9.15% LARSEN & TOUBRO LTD % 8.03% PFC 02 May 2026 (PUT 01 May 2021) % 8.13% PGCIL 23 April % 7.83%IRFC 21 MAR % 9.20% HDFCL % 7.63% PFC 14 Aug % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % 9.66% TATASONS % Total % G-Sec Holdings Amt (mn) % AUM 7.73% Gol Sec % 6.79% GSEC 26 Dec % 8.27% GOI Sec 09 June % 8.83% Gsec 25 NOV % 9.23 GOI % 7.75% Karnataka SDL 01 Mar % 7.88% GSec 19 Mar % 7.73 RJ SDL 01 Mar % 7.61 RJ SDL % 7.59% G Sec 20 Mar % 7.80% GOI 11 APR % 8.53 % GSEC SDL(Assam) % 7.72% G Sec 26 Oct % 8.58 % GSEC SDL(Uttarkhand) % 8.13 % GOI 22 Jun % Total % Money Market Amt (mn) % AUM L&T Liquid Fund Direct Plan Growth % HDFC Liquid Fund Direct Plan Growth Option % Kotak Liquid Regular Plan Growth Direct % Total % Net Current Assets ( 3.29) ( 1.01) % Total Annual Fund Review 13

14 Exide Life Secure Fund Fund Profile: The fund seeks to achieve long term moderate capital growth through an investment mix of upto 20% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00418/10/04SECURE114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Mahesh Sarda Debt : Mr.Pranav Parekh Fund Performance : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 10% to 20% Debt 0% to 90% Money Market 0% to 20% Rating Profile of Debt Instruments AAA: 38.75% SOVEREIGN: 61.25% Period Fund Return Benchmark* 1 Month 1.60% 1.59% 6 Months 3.38% 3.83% 1 Year 12.13% 12.21% 2 Years 8.43% 8.80% 3 Years 11.64% 11.24% Since Inception 8.94% 8.31% *Benchmark : Crisil Composite Bond Index (85%) and Nifty 50 (15%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Asset Allocation (As on Mar 31st, 2017) Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities Pharmaceuticals 6.63 Manufacture of coke and refined petroleum products 6.40 Civil engineering 6.12 Manufacture of other transport equipment 5.43 Manufacture of motor vehicles trailers and semi trailers 4.00 Manufacture of tobacco products 3.62 Manufacture of chemicals and chemical products 2.68 Manufacture of electrical equipment 2.60 Others Debt Sector Allocation % Infrastructure finance Electricity gas steam and air conditioning supply Financial & insurance Water transport 9.82 Civil engineering 8.62 Others: 8.70% Equity: 12.87% Gsec: 48.04% Corporate Debt: Modified Duration of Debt and Money Market Instruments 6.14 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 14

15 Exide Life Secure Fund Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % Infosys Ltd % Reliance Industries Ltd % ICICI Bank Ltd % Larsen & Toubro Ltd % ITC Ltd % Tata Motors Ltd % Mahindra & Mahindra Ltd % Housing Development Finance Corporation Ltd % Bajaj Finance Limited % State Bank of India % Sun Pharmaceutical Industries Ltd % Bank of Baroda % Oil & Natural Gas Corporation Ltd % Crompton Greaves Consumer Electricals Limited % Axis Bank Ltd % Tata Consultancy Services Ltd % Bharti Airtel Ltd % Hindustan Unilever Ltd % MindTree Ltd % Ncc Ltd % Glenmark Pharmaceuticals Ltd % Adani Port & Sez Ltd % Alembic Pharmaceuticals Limited % Yes Bank Ltd % Ultratech Cement Ltd % Coal India Ltd % Hero Motocorp Ltd % The Ramco Cements Limited % Voltas Ltd % Mahindra & Mahindra Financial Services Limited % Punjab National Bank % Union Bank Of India % Gail (India) Ltd % Bharat Heavy Electricals Ltd % VRL Logistics Ltd % Rural Elec Corp. Ltd % Sintex Industries Ltd % Persistent Systems Ltd % NBCC (India) Limited % KEC International Limited % Bharat Electronics Ltd % Aurobindo Pharma Limited % Hcl Technologies Ltd % Hathway Cable & Datacom Limited % Bajaj Electricals Ltd % Asian Paints Ltd % Lupin Ltd % Tech Mahindra Ltd % Wipro Ltd % Colgate Palmolive India Ltd % Texmaco Rail & Engineering Limited % Maruti Suzuki India Ltd % Infrastructure Development Finance Company Ltd % IDFC Bank Ltd % Eicher Motors Limited % Tata Steel Ltd % Annual Fund Review 15

16 Exide Life Secure Fund Kotak Mahindra Bank Ltd % Indusind Bank Ltd % Bosch Ltd % Cipla Ltd % Bharti Infratel Ltd % Bharat Petroleum Corporation Ltd % Acc Ltd % Ambuja Cements Ltd % Bajaj Auto Ltd % Hindalco Industries Ltd % Grasim Industries Ltd % Dr. Reddys Lab Ltd % Ntpc Limited % Power Grid Corpn. Of India Ltd % Zee Entertainment Enterprises Ltd % Tata Power Co. Ltd % Total % Corporate Debt-Holdings Amt (mn) % AUM 7.52% Rural Electrification Corporation Ltd 07 Nov % 8.93% PGCIL 20 OCT % 7.75% PFC 22 Mar % 9.60% GE SHIPPING % 8.65% PFC 28 Dec % 7.58% NTPC 23 Aug % 8.93 PGCIL 20 Oct % 8.95% LARSEN & TOUBRO LTD % 8.50% EXIM Bank 26 April % 7.71% NABARD 17 Mar % 7.83%IRFC 21 MAR % 8.13% PGCIL 23 April % 9.30% PGCIL 04 Sep % 9.15% LARSEN & TOUBRO LTD % Total % G-Sec Holdings Amt (mn) % AUM 7.61% Gsec 09 May % 7.75% Karnataka SDL 01 Mar % 7.71 GUJARAT SDL 01 Mar % 7.59% G Sec 20 Mar % 8.60% GOI 02 June % 9.20 G Sec 30 Sept % 7.73 RJ SDL 01 Mar % 8.28% GOI % 7.88% GSec 19 Mar % 8.27% Gujarat SDL 13 Jan % 8.17% G Sec 01 Dec % 8.53 % GSEC SDL(Assam) % Total % Money Market Amt (mn) % AUM L&T Liquid Fund Direct Plan Growth % HDFC Liquid Fund Direct Plan Growth Option % Kotak Liquid Regular Plan Growth Direct % Total % Net Current Assets % Total Annual Fund Review 16

17 Exide Life Preserver Fund Fund Profile: The fund seeks to generate income by investing in a diversified portfolio of debt and money market instruments of varying maturities. SFIN No: ULIF01016/12/09PRESERVER114 Launch Date: January 01, 2010 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity : Debt : mn Net Current Assets : mn Fund Manager: Debt : Mr.Pranav Parekh Asset Allocation (As approved by IRDAI) Fund Type % Debt 75% to 100% Money Market 0% 25% Rating Profile of Debt Instruments AAA: 37.74% Fund Performance SOVEREIGN: 62.26% Period Fund Return Benchmark* 1 Month 1.37% 1.29% 6 Months 2.95% 3.36% 1 Year 11.31% 11.09% 2 Years 9.31% 9.66% 3 Years 11.51% 11.27% Since Inception 9.96% 8.45% *Benchmark : Crisil Composite Bond Index (100%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Sector Allocation Equity Sector Allocation % Others Debt Sector Allocation % Infrastructure finance Housing Warehousing and support activities for transportation Financial & insurance Civil engineering 8.19 Water transport Mar Asset Allocation (As on Mar 31st, 2017) Others: 9.61% Corporate Debt: 34.11% Gsec: 56.28% Modified Duration of Debt and Money Market Instruments 5.8 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 17

18 Exide Life Preserver Fund Portfolio Holdings Corporate Debt-Holdings Amt (mn) % AUM 10.40% Reliance Ports And Terminals Limited % 8.65% PFC 28 Dec % 7.63% PFC 14 Aug % 7.71% NABARD 17 Mar % 9.70% HDFC % 9.15% LARSEN & TOUBRO LTD % 7.54% Rural Electrification Corporation Ltd 30 Dec % 9.07% REC % 8.03% PFC 02 May 2026 (PUT 01 May 2021) % 9.55% HDFC % 8.11% REC Ltd 07 Oct % 7.83%IRFC 21 MAR % 9.66% TATASONS % 8.30% Rural Electrification Corporation Ltd 10 Apr % 9.20% HDFCL % 9.60% GE SHIPPING % 8.95% LARSEN & TOUBRO LTD % 0.00 % NABARD % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % Total % G-Sec Holdings Amt (mn) % AUM 7.73% Gol Sec % 7.88% GSec 19 Mar % 7.75% Karnataka SDL 01 Mar % 6.79% GSEC 26 Dec % 8.27% GOI Sec 09 June % 8.83% Gsec 25 NOV % 7.61 RJ SDL % 7.73 RJ SDL 01 Mar % 7.59% G Sec 20 Mar % 8.17% G Sec 01 Dec % 8.15 GOI Security % 7.61% Gsec 09 May % 7.80% GOI 11 APR % 8.46% Gujarat SDL 10 Feb % 9.23 GOI % 8.58 % GSEC SDL(Uttarkhand) % 7.72% G Sec 26 Oct % 8.13 % GOI 22 Jun % 8.23% Goi Sec (Food Bond) % 7.40% GoI Sec % 10.25% GoI Sec % 12.60% GoI Sec % 5.69% GoI Sec % 6.17% GoI Sec % 6.30% GoI Sec % 7.95% GoI Sec % 8.15% GoI FOOD BOND % 8.30% GOI Fert Bond % 7.46% GSEC % Total % Money Market Amt (mn) % AUM Annual Fund Review 18

19 Exide Life Preserver Fund L&T Liquid Fund Direct Plan Growth % HDFC Liquid Fund Direct Plan Growth Option % Kotak Liquid Regular Plan Growth Direct % Total % Net Current Assets % Total Annual Fund Review 19

20 Exide Life Balanced Fund Fund Profile: The fund seeks to achieve long term capital growth through an investment mix of upto 40% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00118/10/04BALANCE114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Mahesh Sarda Debt : Mr.Pranav Parekh Fund Performance : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 20% 40% Debt 0% 80% Money Market 0% 20% Rating Profile of Debt Instruments AAA: 36.68% SOVEREIGN: 63.32% Period Fund Return Benchmark* 1 Month 1.90% 1.90% 6 Months 3.86% 4.31% 1 Year 13.60% 13.33% 2 Years 7.56% 7.94% 3 Years 11.81% 11.20% Since Inception 9.44% 9.32% *Benchmark : Crisil Composite Bond Index(70%) and Nifty 50 (30%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities Pharmaceuticals 6.83 Manufacture of coke and refined petroleum products 6.27 Civil engineering 5.66 Manufacture of motor vehicles trailers and semi trailers 5.12 Manufacture of other transport equipment 4.01 Manufacture of tobacco products 3.90 Manufacture of chemicals and chemical products 2.83 Manufacture of electrical equipment 2.41 Others Debt Sector Allocation % Infrastructure finance Electricity gas steam and air conditioning supply Financial & insurance Asset Allocation (As on Mar 31st, 2017) Others: 7.13% Equity: 26.50% Gsec: 42.03% Corporate Debt: 24.34% Modified Duration of Debt and Money Market Instruments 6.29 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 20

21 Exide Life Balanced Fund Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % ICICI Bank Ltd % Reliance Industries Ltd % Infosys Ltd % Larsen & Toubro Ltd % ITC Ltd % Housing Development Finance Corporation Ltd % Tata Motors Ltd % State Bank of India % Mahindra & Mahindra Ltd % Sun Pharmaceutical Industries Ltd % Bajaj Finance Limited % Bank of Baroda % Oil & Natural Gas Corporation Ltd % Tata Consultancy Services Ltd % Maruti Suzuki India Ltd % Bharti Airtel Ltd % Crompton Greaves Consumer Electricals Limited % Axis Bank Ltd % Yes Bank Ltd % Hindustan Unilever Ltd % MindTree Ltd % Glenmark Pharmaceuticals Ltd % Adani Port & Sez Ltd % Alembic Pharmaceuticals Limited % Ncc Ltd % Mahindra & Mahindra Financial Services Limited % Voltas Ltd % The Ramco Cements Limited % Coal India Ltd % Bharat Heavy Electricals Ltd % Ultratech Cement Ltd % Punjab National Bank % Gail (India) Ltd % Hcl Technologies Ltd % Union Bank Of India % VRL Logistics Ltd % Rural Elec Corp. Ltd % Sintex Industries Ltd % KEC International Limited % Lupin Ltd % Bharat Electronics Ltd % Bajaj Electricals Ltd % NBCC (India) Limited % Persistent Systems Ltd % Aurobindo Pharma Limited % Hathway Cable & Datacom Limited % Hero Motocorp Ltd % Asian Paints Ltd % Colgate Palmolive India Ltd % Wipro Ltd % Tech Mahindra Ltd % Texmaco Rail & Engineering Limited % IDFC Bank Ltd % Zee Entertainment Enterprises Ltd % Infrastructure Development Finance Company Ltd % Tata Steel Ltd % Annual Fund Review 21

22 Exide Life Balanced Fund Kotak Mahindra Bank Ltd % Power Grid Corpn. Of India Ltd % Ntpc Limited % Indusind Bank Ltd % Hindalco Industries Ltd % Bajaj Auto Ltd % Acc Ltd % Ambuja Cements Ltd % Bharat Petroleum Corporation Ltd % Bharti Infratel Ltd % Bosch Ltd % Cipla Ltd % Dr. Reddys Lab Ltd % Eicher Motors Limited % Grasim Industries Ltd % Tata Power Co. Ltd % Total % Corporate Debt-Holdings Amt (mn) % AUM 8.50% EXIM Bank 26 April % 8.65% PFC 28 Dec % 7.58% NTPC 23 Aug % 8.93% PGCIL 20 OCT % 7.75% PFC 22 Mar % 7.52% Rural Electrification Corporation Ltd 07 Nov % 9.30% PGCIL 04 Sep % 7.83%IRFC 21 MAR % 7.71% NABARD 17 Mar % 8.13% PGCIL 23 April % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % Total % G-Sec Holdings Amt (mn) % AUM 7.75% Karnataka SDL 01 Mar % 7.59% G Sec 20 Mar % 7.61% Gsec 09 May % 7.71 GUJARAT SDL 01 Mar % 9.20 G Sec 30 Sept % 7.88% GSec 19 Mar % 8.27% Gujarat SDL 13 Jan % 8.28% GOI % 7.73 RJ SDL 01 Mar % 8.97% GOI 05 Dec % Total % Money Market Amt (mn) % AUM HDFC Liquid Fund Direct Plan Growth Option % Kotak Liquid Regular Plan Growth Direct % L&T Liquid Fund Direct Plan Growth % Total % Net Current Assets % Total Annual Fund Review 22

23 Exide Life Active Asset Allocation Fund Fund Profile: The fund seeks provide long term capital appreciation in a risk controlled manner by making clear and dynamic asset allocation choices as between Equities and Bonds. SFIN No: ULIF01527/12/10ACTASSET114 Launch Date: January 18, 2011 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Shyamsunder Bhat Debt : Mr.Pranav Parekh : mn : mn : 3.04 mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 20% 100% Debt 0% 80% Money Market 0% 80% Rating Profile of Debt Instruments AAA: 22.32% Fund Performance SOVEREIGN: 77.68% Period Fund Return Benchmark* 1 Month 2.31% 2.30% 6 Months 5.89% 4.95% 1 Year 16.97% 14.82% 2 Years 5.08% 6.80% 3 Years 11.86% 11.15% Since Inception 8.78% 8.51% *Benchmark : Crisil Composite Bond Index (50%) and Nifty 50 (50%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities Pharmaceuticals 7.71 Manufacture of chemicals and chemical products 7.55 Manufacture of coke and refined petroleum products 5.81 Civil engineering 5.29 Manufacture of motor vehicles trailers and semi trailers 4.91 Manufacture of tobacco products 4.78 Manufacture of other transport equipment 3.76 Telecommunications 2.18 Others Debt Sector Allocation % Electricity gas steam and air conditioning supply Financial & insurance Warehousing and support activities for transportation Asset Allocation (As on Mar 31st, 2017) Others: 18.67% Gsec: 20.77% Equity: 54.59% Corporate Debt: 5.97% Modified Duration of Debt and Money Market Instruments 4.45 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 23

24 Exide Life Active Asset Allocation Fund Portfolio Holdings Equity-Holdings Amt (mn) % AUM Infosys Ltd % Housing Development Finance Corporation Ltd % HDFC Bank Ltd % ITC Ltd % Larsen & Toubro Ltd % Reliance Industries Ltd % State Bank of India % Tata Consultancy Services Ltd % ICICI Bank Ltd % Kotak Mahindra Bank Ltd % Maruti Suzuki India Ltd % Axis Bank Ltd % Asian Paints Ltd % Tata Motors Ltd % Sun Pharmaceutical Industries Ltd % Hindustan Unilever Ltd % Zee Entertainment Enterprises Ltd % Mahindra & Mahindra Ltd % Lupin Ltd % UPL Limited % Aurobindo Pharma Limited % Hcl Technologies Ltd % Coal India Ltd % Ultratech Cement Ltd % Tata Steel Ltd % United Spirits Ltd % Bharti Infratel Ltd % Voltas Ltd % Nestle India Ltd % Max Financial Services Ltd % Indian Oil Corporation Ltd % Eicher Motors Limited % Gail (India) Ltd % Indusind Bank Ltd % Jubilant Life Sciences Limited % Bombay Stock Exchange Ltd % Srf Limited % Ncc Ltd % Yes Bank Ltd % Bharti Airtel Ltd % Britannia Industries Limited % Wipro Ltd % Dishman Pharmaceuticals and Chemicals Limited % Oil & Natural Gas Corporation Ltd % Glenmark Pharmaceuticals Ltd % Amara Raja Batteries Ltd % Power Finance Corporation Limited % Sintex Industries Ltd % KEC International Limited % Bharat Petroleum Corporation Ltd % Adani Port & Sez Ltd % Hero Motocorp Ltd % Power Grid Corpn. Of India Ltd % Credit Analysis And Research Limited % Sterlite Technologies Ltd % Tech Mahindra Ltd % Crompton Greaves Consumer Electricals Limited % Annual Fund Review 24

25 Exide Life Active Asset Allocation Fund City Union Bank Ltd % Cipla Ltd % Bajaj Finance Limited % Bajaj Auto Ltd % Dr. Reddys Lab Ltd % Ntpc Limited % Hindalco Industries Ltd % Bosch Ltd % Ambuja Cements Ltd % Grasim Industries Ltd % Tata Power Co. Ltd % Acc Ltd % Bank of Baroda % Total % Corporate Debt-Holdings Amt (mn) % AUM 7.58% NTPC 23 Aug % 8.50% EXIM Bank 26 April % 9.30% PGCIL 04 Sep % 10.40% Reliance Ports And Terminals Limited % 8.93% PGCIL 20 OCT % Total % G-Sec Holdings Amt (mn) % AUM 7.61% Gsec 09 May % 7.59% G Sec 20 Mar % 7.88% GSec 19 Mar % 9.20 G Sec 30 Sept % 8.17% G Sec 01 Dec % 8.27% Gujarat SDL 13 Jan % 8.28% GOI % Total % Money Market Amt (mn) % AUM Kotak Liquid Regular Plan Growth Direct % HDFC Liquid Fund Direct Plan Growth Option % L&T Liquid Fund Direct Plan Growth % CBLO 03APR % Total % Net Current Assets % Total Annual Fund Review 25

26 Exide Life Growth Fund Fund Profile: The fund seeks to achieve long term accelerated capital growth through an investment mix of upto 60% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00318/10/04GROWTH114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2017: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Sumeet Hinduja Debt : Mr.Pranav Parekh : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 40% 60% Debt 0% 60% Money Market 0% 20% Rating Profile of Debt Instruments AA+: 3.20% SOVEREIGN: 51.39% AAA: 45.41% Fund Performance Period Fund Return Benchmark* 1 Month 2.23% 2.30% 6 Months 4.42% 4.95% 1 Year 15.18% 14.82% 2 Years 6.36% 6.80% 3 Years 11.97% 11.15% Since Inception 10.40% 10.68% *Benchmark : Crisil Composite Bond Index(50%) and Nifty 50 (50%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Asset Allocation (As on Mar 31st, 2017) Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities Manufacture of coke and refined petroleum products 6.84 Manufacture of tobacco products 6.79 Pharmaceuticals 6.29 Manufacture of motor vehicles trailers and semi trailers 6.25 Manufacture of other transport equipment 6.12 Manufacture of chemicals and chemical products 4.76 Civil engineering 3.43 Manufacture of other non metallic mineral products 2.45 Others Debt Sector Allocation % Infrastructure finance Financial & insurance Housing Electricity gas steam and air conditioning supply 9.18 Warehousing and support activities for transportation 7.02 Water transport 6.66 Civil engineering 3.52 Others: 4.62% Gsec: 24.06% Equity: 48.56% Corporate Debt: 22.76% Modified Duration of Debt and Money Market Instruments 5.62 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 26

27 Exide Life Growth Fund Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % ITC Ltd % Infosys Ltd % Housing Development Finance Corporation Ltd % Reliance Industries Ltd % ICICI Bank Ltd % Larsen & Toubro Ltd % Maruti Suzuki India Ltd % Kotak Mahindra Bank Ltd % Tata Consultancy Services Ltd % Sun Pharmaceutical Industries Ltd % Tata Motors Ltd % Axis Bank Ltd % State Bank of India % Indusind Bank Ltd % Ultratech Cement Ltd % Asian Paints Ltd % Hindustan Unilever Ltd % Mahindra & Mahindra Ltd % Hero Motocorp Ltd % Yes Bank Ltd % Zee Entertainment Enterprises Ltd % Hcl Technologies Ltd % Lupin Ltd % Eicher Motors Limited % Aurobindo Pharma Limited % Ashok Leyland Ltd % Coal India Ltd % Oil & Natural Gas Corporation Ltd % Hathway Cable & Datacom Limited % Nestle India Ltd % Ntpc Limited % Bajaj Finance Limited % Max Financial Services Ltd % Motherson Sumi Systems Ltd % Britannia Industries Limited % Tech Mahindra Ltd % Castrol India Ltd % UPL Limited % Mahindra Cie Automotive Ltd % Hindustan Petroleum Corporation Ltd % Voltas Ltd % Bharti Infratel Ltd % Bharat Electronics Ltd % Dishman Pharmaceuticals and Chemicals Limited % United Spirits Ltd % Srf Limited % Power Grid Corpn. Of India Ltd % Bombay Stock Exchange Ltd % Gail (India) Ltd % Jindal Steel & Power Ltd % Shree Cements Ltd % Equitas Holdings Ltd % Glenmark Pharmaceuticals Ltd % MindTree Ltd % Infrastructure Development Finance Company Ltd % City Union Bank Ltd % Annual Fund Review 27

28 Exide Life Growth Fund Bharat Petroleum Corporation Ltd % Bharti Airtel Ltd % Bharat Forge Ltd % Bank of Baroda % Indraprastha Gas Ltd % KEC International Limited % Tata Steel Ltd % Grasim Industries Ltd % Dr. Reddys Lab Ltd % NBCC (India) Limited % V Guard Industries Ltd % Cipla Ltd % Adani Port & Sez Ltd % Hindalco Industries Ltd % Idea Cellular Ltd % National Aluminium Co. Ltd % Total % Corporate Debt-Holdings Amt (mn) % AUM 10.40% Reliance Ports And Terminals Limited % 7.63% PFC 14 Aug % 8.30% Rural Electrification Corporation Ltd 10 Apr % 9.60% GE SHIPPING % 9.95% State Bank of India 16 Mar 2026 (Call 16 Mar 2021) % 8.93 PGCIL 20 Oct % 9.85% Sundaram Finance Ltd % 9.05% State Bank of India(Perpetual Bond) (Call 27 Jan 2020) % 9.15% IL & FS % 9.20% State Bank of Hyderabad Perpetual Bond % 9.20 Bank of Baroda Perpetual Bond % 8.23 % Rural Electrification Corporation Ltd 23 Jan % 7.75% PFC 22 Mar % 9.18% TATA SONS LTD % 9.70% IL & FS 22 Feb % 9.75% ICICI HOME FINANCE CO. LTD % 7.60% HDFC s a % 0.00% NABARD BHAVISHYA NIRMAN BOND % 8.65% PFC 28 Dec % 9.20% HDFCL % 9.66% TATASONS % 9.30% PGCIL 04 Sep % 9.15% LARSEN & TOUBRO LTD % 9.30% LIC HOUSING FINANCE LTD % 8.95% LARSEN & TOUBRO LTD % 9.55% HDFC % 7.54% Rural Electrification Corporation Ltd 30 Dec % 8.13% PGCIL 23 April % 8.11% REC Ltd 07 Oct % 9.70% HDFC % 9.19% GE SHIPPING % 7.71% NABARD 17 Mar % 9.47% PGCIL % 8.03% PFC 02 May 2026 (PUT 01 May 2021) % 9.07% REC % 8.93% PGCIL 20 OCT % 10.60% IRFC % 0.00% NATIONAL HOUSING BANK ZCB UL % 10.85% REC % 8.97 PFC Ltd 15 Jan % 7.52% Rural Electrification Corporation Ltd 07 Nov % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % 7.83%IRFC 21 MAR % Annual Fund Review 28

29 Exide Life Growth Fund 0.00 % NABARD % Total % G-Sec Holdings Amt (mn) % AUM 8.13 % GOI 22 Jun % 7.73% Gol Sec % 9.23 GOI % 8.24% GoI Sec % 8.28% GOI % 7.95% GoI Sec % 7.59% G Sec 11 Jan % 7.75% Karnataka SDL 01 Mar % 7.59% G Sec 20 Mar % 8.83% Gsec 25 NOV % 6.79% GSEC 26 Dec % 8.97% GOI 05 Dec % 7.71 GUJARAT SDL 01 Mar % 7.73 RJ SDL 01 Mar % 7.80% GOI 11 APR % 7.72% G Sec 26 Oct % 8.24% Gsec 10 Nov % 7.61% Gsec 09 May % 7.83 GSEC 11 Apr % 8.17% G Sec 01 Dec % 7.88% GSec 19 Mar % 8.27% Gujarat SDL 13 Jan % 8.53 % GSEC SDL(Assam) % 8.15 GOI Security % 8.27% GOI Sec 09 June % 8.58 GUJARAT SDL 23 JAN % 8.60% GOI 02 June % 8.67 Maharashtra SDL 24 Feb % 8.58 % GSEC SDL(Uttarkhand) % 6.01% GoI Sec % Total % Money Market Amt (mn) % AUM Reliance Nippon CPSE Exchange Traded Fund % HDFC Liquid Fund Direct Plan Growth Option % Kotak Liquid Regular Plan Growth Direct % L&T Liquid Fund Direct Plan Growth % CBLO 03APR % Total % Net Current Assets % Total Annual Fund Review 29