Equity Market. Nifty % 6000 Sensex % BSE % Dow Jones

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1 Equity Market Sensex Nifty 6500 Key Indices Dec-10 % Change Nifty % Sensex % BSE % Dow Jones % Nikkei % Dec-09 Feb-10 Mar-10 Apr-10 May- Jun-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec Hang Seng % Nasdaq % KOSPI % The year 2011 began with Sensex near its all time highs, however, macro-economic headwinds like inflation, tight liquidity, hardening interest rates, high current account deficit and fiscal pressures, led to a sharp correction of 10.6% in the month of Jan. India was the worst performing major market globally as FII's sold $1.2bn worth of stocks in Indian equities after investing an all time high of $29bln in CY2010. Local Institutions were net buyers to the tune of $26mn only since equity flows of Insurance companies were also muted due to the recent regulatory changes. Over & above this, the political standstill resulting from recently unearthed scams led to slowdown in infrastructure spending and delay in various reforms and policy measures, which further impacted markets sentiments. Global growth has been encouraging with US growth picking up on the back of low interest rates and healthier US corporate balance sheets driven capex and discretionary spending. Europe is showing diverging trends as core Europe including Germany, France and Netherlands are growing well while periphery Europe is still contracting due to the burden of fiscal consolidation. Easy global liquidity has been flowing to Commodities and Oil off late, resulting in inflationary pressures in emerging markets like India which import the same. The concerns of high inflation and consequent policy tightening coupled with improving US growth outlook resulted in underperformance of global emerging market equities vis-à-vis developed market equities. The 3rd Quarter results season has been mixed with earnings of large firms like SBI, BHEL, ITC and TCS beating market expectations while others such as Reliance Industries, Infosys and Hindustan Unilever have lagged expectations FII MF Rs v/s USD In US $ MN (500) (1500) (2500) Jan 10 Feb 10 Mar 10 Apr 10 May 10 June 10 July 10 Aug 10 Sept 10 Oct 10 Nov 10 Dec 10 Jan Dec-09 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Equity Outlook In the near-term, led by pickup in US growth, attractive valuations of DM equities and rising inflationary pressure in the Emerging markets, we may see FIIs showing a higher preference for Developed Market equities. However, once commodities correct on China s policy tightening, EM inflationary pressure will ease. This coupled with valuation turning attractive post the correction will see FIIs returning to growth markets of EMs. Domestically, there are visible pressure on corporate profitability due to rising input costs, labor costs & higher interest rates which may lead to earnings downgrades going forward. We expect RBI to further hike policy rates and continue to keep liquidity in the deficit mode in order to combat inflation. Since inflation in India is primarily driven by structural supply side factors, any excessive tightening may moderate growth and act counterproductive going forward by hurting investments. At present, consumption is driving the economic growth and investments have failed to pick up substantially. Dedicated efforts and focused steps are required from the Government to increase productive spending, accelerate infrastructure development and create a conducive environment for pick-up in private investments & FDI inflows in the economy. India needs a visionary leadership from the central government to unshackle the economy from the structural bottlenecks which leads to growth turning inflationary & imbalanced. Post the correction in Jan 11, Sensex is trading at attractive valuations of 14.8xFY12e earnings, which is lower than its long-term average. Although, in the near-term markets may remain volatile, this is a good opportunity to invest in fundamentally strong companies with good growth potential which are available at at reasonable valuations.

2 Debt Market Yr G-Sec yield 5 year Corporate Bond Spread 175 Key Indices Dec-10 % Change year G-Sec 8.16% 7.92% 3.03% 5 Year G-Sec 7.88% 7.86% 0.25% percentage Dec-09 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec bps 91 Day T Bill 7.20% 7.10% 1.41% 364 day T-Bill 7.55% 7.43% 1.62% MIBOR 8.12% 8.54% -4.92% Call Rates 6.39% 6.75% -5.33% Inflation 8.43% 7.48% 12.70% The RBI in its monetary policy review on the 25th Jan 2010 raised the repo & reverse repo rates by 25bps each to 6.5% and 5.5% respectively. With an objective of rate normalization and combating inflation, the RBI has raised these rates 7 times since Dec The banking system liquidity remained in the deficit mode with the banks borrowing nearly $1 trillion from RBI on a daily basis. To provide some relief from the tight liquidity deficit, RBI extended its liquidity support measures till 8th April With rising income & aspiration levels and changing consumption pattern, the demand-supply imbalances are creating inflationary pressures across the board in essential food products. The upwards movement in inflation during December 2010, has once again highlighted the main concerns for policy makers - controlling wide spread inflationary pressures emanating from high food prices and strong growth. Debt Outlook Going ahead, the food price inflation will continue to remain high unless supply side constrains are tackled. We expect RBI to continue to remain focused on curbing inflation and inflationary expectations. So, further policy tightening would in particular depend upon the strength of the demand side pressures on inflation, which among other things would depend upon the pace of bank credit expansion. However, we do not expect any excessive tightening. RBI is likely to raise the repo & reverse repo rates by another 50-75bps till the end of Liquidity pressures are likely to ease gradually as government spending picks up and deposit growth accelerates led by hike in deposit rate by banks. The RBI would also continue to manage liquidity more proactively as it wants the liquidity deficit in the banking system to not exceed 1% of the banking system net demand and time liabilities. At present, rising policy rates and tight liquidity will keep short-term rates under pressure. The long-term bonds will see relatively less pressure as there will be demand in that segment from Pension funds towards end of the financial year. We expect the 10-Yr G-Sec to be in the range of 8.10% %. The spreads on rated 10 Year Corporate Bond, which is currently at ~85bps, is likely to widen to ~100bps. The market will be keenly watching the Union Budget to get further clarity on the Fiscal Deficit and Government borrowing for next year.

3 Learning Curve Understanding Securities Lending & Borrowing Scheme Securities Lending and Borrowing Scheme is a method, whereby an owner of securities can lend the same to a borrower through an approved intermediary. In India, the Securities and Exchange Board of India (SEBI) has authorized the clearing houses of both the National Stock Exchange and Bombay Stock Exchange to act as an approved intermediary. There is no direct contact between the borrower and lender, and both the borrower and lender of securities independently enter into a contract with the approved intermediary. Currently, the securities can be borrowed for up to 12 months. There are 12 fixed monthly tenures with fixed reverse leg settlement dates available for transactions in SLB. The fixed settlement dates are the first Thursday of the respective month and the date is displayed on the NEAT SLB trading screen at the time of order entry. Each month is assigned a series where January is 01 up to December as 12. The Borrower has to pay a lending fee to the Lender which is quoted on a per share basis. This fee is based on the annualized yield expected by the lender or the cost which the borrower expects to pay. For e.g. If the lender is lending shares for a period of 180 days he could quote lending fee per share which is based on the rate of return expected by the lender. Borrowers and lenders can place their orders through clearing members of the stock exchanges, including banks and custodians that are registered as participants as per the terms of the scheme. Participants have to enter into separate agreement with each client as per the format specified by the stock exchanges. In case the borrower fails to return the securities, the approved intermediary shall be liable to make good the loss of the lender. At present, securities traded in Futures and Options (F&O) segment are eligible for lending and borrowing under the scheme. Advantages of SLBS The main advantage of this scheme is that it nicely complements short-selling in the stock market. Shortsellers enter into sale transactions even without owning securities and believe that the prices of securities will fall in future so they can meet their settlement obligations by purchasing securities subsequently at a lower price. They temporarily use the facility of borrowing securities for meeting their settlement obligations and subsequently return them to lenders after purchasing these from the market. In this whole transaction, the lenders get paid for lending which otherwise would have remained idle. Benefits accrued on Securities As per the Sebi securities lending scheme, 1997, all corporate benefits such as dividends, rights, bonus, redemption benefits, interest or any other right or benefit accruing on the securities lent would remain with the lenders of the securities and hence the lender of the securities will continue to be the beneficial owner.

4 The use of the borrowing facility purely to exercise voting rights has large implications on corporate governance. At present, stock exchange guidelines provide that borrowing and lending of securities undergoing corporate actions shall remain suspended The Securities Lending and Borrowing Scheme have the potential of taking the Indian stock market to great heights in due course of time. Arpita Nanoti Head Investments Communication & Advisory

5 FUND PERFORMANCE AS ON 31ST JANUARY 2011 GROUP Inception Date Secure 19-Jun-01 Stable 31-Aug-01 Growth 31-Aug-01 Growth Advantage 18-Feb-08 Fund Return BM Fund Return BM Fund Return BM Fund Return BM Last 1 year 6.21% 4.30% 7.35% 5.13% 9.15% 5.92% 9.95% 6.42% Last 2 years 12.68% 9.61% 17.76% 14.41% 24.31% 19.28% 29.38% 22.57% Last 3 years 9.83% 3.94% 9.18% 3.72% 12.22% 3.37% - - Since Inception 11.68% % % % - Asset Held (Rs. In Millions) GROUP Inception Date Money Market 30-Mar-05 Bond 28-Jan-07 Fixed Interest 18-Nov-02 Short Term Debt 10-Dec-08 Fund Return BM Fund Return BM Fund Return BM Fund Return BM Last 1 year 7.16% 4.33% 7.41% % 3.12% 6.45% 3.30% Last 2 years 9.38% 3.72% 9.90% % 3.33% 7.82% - Last 3 years 11.03% % % 3.88% - - Since Inception 9.66% % % % - Asset Held (Rs. In Millions) Disclaimer: This document is issued by BSLI. While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any investment strategy, nor does it constitute any prediction of likely future movements in NAVs. Past performance is not necessarily indicative of future performance. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Birla Sun Life Insurance Company Limited, nor any person connected with it, accepts any liability arising from the use of this document. You are advised to make your own independent judgment with respect to any matter contained herein.

6 Secure Fund Objective: To build capital and generate better returns at moderate level of risk, over a medium or long-term period through a balance of investment in equity and debt. GOVERNMENT 21.72% 8.26% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 7.8% GOVERNMENT OF INDIA % 8.28% GOVERNMENT OF INDIA % 8.08% GOVERNMENT OF INDIA % 8.32% GOVERNMENT OF INDIA % 8.24% GOVERNMENT OF INDIA % 7.59% GOVERNMENT OF INDIA % 7.95% GOVERNMENT OF INDIA % OTHER GOVERNMENT 4.69% CORPORATE DEBT 39.63% 8.49% POWER FINANCE CORPN. LTD % 9.5% NATIONAL BANK FOR AGRI. AND RURAL DEVEL 1.51% 9.47% POWER GRID CORPN. OF INDIA LTD % 11.45% RELIANCE INDUSTRIES LTD % HOUSING DEVELOPMENT FINANCE CORPN. LTD % 9.45% RURAL ELECTRIFICATION CORPN. LTD % 9.05% STATE BANK OF INDIA % 7.4% TATA CHEMICALS LTD % 7.99% L I C HOUSING FINANCE LTD % 12.65% CHOLAMANDALAM INVESTMENT AND FINANC 0.90% OTHER CORPORATE DEBT 27.26% Strategy: Generate better returns with moderate risk level through fixed income portfolio and focus on creating long term equity portfolio which will enhance yield of composite portfolio with low level of risk appetite % Equities 18.68% 19.97% G-Secs 21.72% EQUITY 18.68% RELIANCE INDUSTRIES LTD. 1.45% INFOSYS TECHNOLOGIES LTD. 1.22% I C I C I BANK LTD. 1.11% LARSEN AND TOUBRO LTD. 0.86% STATE BANK OF INDIA 0.75% I T C LTD. 0.71% BHARAT HEAVY ELECTRICALS LTD. 0.61% H D F C BANK LTD. 0.51% OIL AND NATURAL GAS CORPN. LTD. 0.50% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 0.48% OTHER EQUITY 10.48% 29.65% AA+ AA- AA 4.16% 3.29% 4.47% 38.93% Sectoral Allocation 19.50% 19.97% Secure BM BANKING 19.18% CAPITAL GOODS 13.74% OIL & GAS 12.30% IT 9.33% Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Apr-10 Oct-10 PHARMA FMCG METAL POWER AUTO 6.95% 5.95% 5.79% 5.77% 5.54% 45.55% FINANCIAL SERVICES OTHERS 4.96% 3.83% 32.90% TELECOM 2.08% 21.55% AGRO & FERTILISERS 2.05% DIVERSIFIED CEMENT 1.27% 1.26%

7 GOVERNMENT 20.60% Stable Fund Objective: To grow your capital through enhanced returns over a medium to long term period through investments in equity and debt instruments, thereby providing a good balance between risk and return. 8.28% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 8.26% GOVERNMENT OF INDIA % 7.44% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 7.8% GOVERNMENT OF INDIA % 7.95% GOVERNMENT OF INDIA % 8.3% GOVERNMENT OF INDIA % 7.59% GOVERNMENT OF INDIA % 7.5% GOVERNMENT OF INDIA % OTHER GOVERNMENT 2.65% CORPORATE DEBT 36.95% 11.45% RELIANCE INDUSTRIES LTD % 9.5% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPM 2.02% 9.45% RURAL ELECTRIFICATION CORPN. LTD % 8.5% EXPORT IMPORT BANK OF INDIA % 7.4% TATA CHEMICALS LTD % 11.4% POWER FINANCE CORPN. LTD % 10.1% POWER GRID CORPN. OF INDIA LTD % 9.76% INDIAN RAILWAY FINANCE CORPN. LTD % 12.65% CHOLAMANDALAM INVESTMENT AND FINANCE C 1.09% 8.7% POWER FINANCE CORPN. LTD % OTHER CORPORATE DEBT 21.33% Strategy: To earn capital appreciation by maintaining diversified equity portfolio and seek to earn regular return on fixed income portfolio by active management resulting in wealth creation for policyholders % 8.17% Equities 34.28% G-Secs 20.60% EQUITY 34.28% RELIANCE INDUSTRIES LTD. 2.68% INFOSYS TECHNOLOGIES LTD. 2.22% I C I C I BANK LTD. 2.01% LARSEN AND TOUBRO LTD. 1.56% STATE BANK OF INDIA 1.35% I T C LTD. 1.27% BHARAT HEAVY ELECTRICALS LTD. 1.10% H D F C BANK LTD. 0.94% OIL AND NATURAL GAS CORPN. LTD. 0.92% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 0.86% OTHER EQUITY 19.37% 46.33% AA 1.72% AA- 4.17% AA+ 5.06% 9.78% 32.95% 8.17% Sectoral Allocation Stable BM BANKING 19.15% CAPITAL GOODS 13.68% OIL & GAS 12.36% IT 9.15% Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Apr-10 Oct-10 PHARMA FMCG POWER METAL AUTO 7.05% 5.91% 5.88% 5.84% 5.41% 36.31% 29.61% 34.08% FINANCIAL SERVICES OTHERS TELECOM 4.78% 3.86% 2.10% AGRO & FERTILISERS 2.03% CEMENT 1.39% DIVERSIFIED 1.39%

8 GOVERNMENT 15.27% 7.8% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 7.59% GOVERNMENT OF INDIA % 6.9% GOVERNMENT OF INDIA % 8.08% GOVERNMENT OF INDIA % 8.24% GOVERNMENT OF INDIA % 8.32% GOVERNMENT OF INDIA % 8.3% GOVERNMENT OF INDIA % 7.46% GOVERNMENT OF INDIA % OTHER GOVERNMENT 0.34% CORPORATE DEBT 27.02% 8.7% POWER FINANCE CORPN. LTD % 8.48% L I C HOUSING FINANCE LTD % 5.9% H D F C BANK LTD % 8.2% INDIAN RAILWAY FINANCE CORPN. LTD % 8.95% POWER FINANCE CORPN. LTD % 11.45% RELIANCE INDUSTRIES LTD % 8.75% BAJAJ FINANCE LTD % 9.05% STATE BANK OF INDIA % 8.7% POWER FINANCE CORPN. LTD % 12.65% CHOLAMANDALAM INVESTMENT AND FINANCE C 0.97% OTHER CORPORATE DEBT 13.96% EQUITY 47.26% RELIANCE INDUSTRIES LTD. 3.67% INFOSYS TECHNOLOGIES LTD. 3.12% I C I C I BANK LTD. 2.81% LARSEN AND TOUBRO LTD. 2.18% STATE BANK OF INDIA 1.90% I T C LTD. 1.71% BHARAT HEAVY ELECTRICALS LTD. 1.54% H D F C BANK LTD. 1.29% OIL AND NATURAL GAS CORPN. LTD. 1.26% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 1.21% OTHER EQUITY 26.57% Growth Fund Objective: To achieve optimum balance between growth and stability to provide long-term capital appreciation with balanced level of risk by investing in fixed income securities and high quality equity security. Strategy: To ensure capital appreciation by simultaneously investing into fixed income securities and maintaining diversified equity portfolio. Active fund management is carried out to enhnce policyholder s wealth in long run. Equities 47.26% 43.72% BANKING AA- 2.48% G-Secs 15.27% 27.02% 10.45% AA 2.60% AA+ 4.18% 30.79% Sectoral Allocation 16.23% 19.26% 10.45% CAPITAL GOODS 13.78% Gr. Growth BM OIL & GAS 12.27% IT 9.47% PHARMA 7.05% FMCG 5.82% METAL 5.80% POWER 5.80% Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Apr-10 Oct-10 AUTO FINANCIAL SERVICES OTHERS 3.63% 5.59% 4.89% 41.31% 23.12% 35.57% TELECOM AGRO & FERTILISERS 2.09% 2.05% CEMENT 1.26% DIVERSIFIED 1.24%

9 GOVERNMENT 12.53% 7.49% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 8.08% GOVERNMENT OF INDIA % 8.3% GOVERNMENT OF INDIA % 7.59% GOVERNMENT OF INDIA % 7.46% GOVERNMENT OF INDIA % 7.99% GOVERNMENT OF INDIA % CORPORATE DEBT 20.72% 11.5% RURAL ELECTRIFICATION CORPN. LTD % 6.1% NUCLEAR POWER CORPN. OF INDIA LTD % 9.47% POWER GRID CORPN. OF INDIA LTD % 8.7% POWER FINANCE CORPN. LTD % 2% INDIAN HOTELS CO. LTD % 7.75% RURAL ELECTRIFICATION CORPN. LTD % 7.35% HINDUSTAN PETROLEUM CORPN. LTD % 8.8% POWER GRID CORPN. OF INDIA LTD % 11.95% HOUSING DEVELOPMENT FINANCE CORP 0.78% 10.48% ULTRATECH CEMENT LTD % OTHER CORPORATE DEBT 0.89% EQUITY 57.31% RELIANCE INDUSTRIES LTD. 5.17% INFOSYS TECHNOLOGIES LTD. 4.98% I C I C I BANK LTD. 3.58% LARSEN AND TOUBRO LTD. 3.21% I T C LTD. 2.97% STATE BANK OF INDIA 2.72% OIL AND NATURAL GAS CORPN. LTD. 2.61% BHARAT HEAVY ELECTRICALS LTD. 2.05% TATA CONSULTANCY SERVICES LTD. 2.01% H D F C BANK LTD. 1.82% OTHER EQUITY 26.19% Growth Advantage Fund Objective: To provide blend of fixed return by investing in debt & money market instruments and capital appreciation by predominantly investing in equities of fundamentally strong and large blue chip companies. Strategy: To build and actively manage a well-diversified equity portfolio of value & growth driven stocks by following a research-focused investment approach. While appreciating the high risk associated with equities, the fund would attempt to maximize the risk-return pay-off for the long-term advantage of the policyholders. The non-equity portion of the fund will be invested in high rated debt and money market instruments and fixed deposits. Equities 57.31% 28.77% OIL & GAS AA+ 3.68% 43.88% 9.44% G-Secs 12.53% Sectoral Allocation 20.72% 23.67% 17.05% 9.44% BANKING IT 12.20% 16.39% Gr. Advantage BM CAPITAL GOODS 11.30% METAL 10.29% FMCG AUTO 7.10% 6.80% Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Mar-10 May-10 Sep-10 Nov-10 POWER PHARMA CEMENT 3.62% 2.79% 4.39% 32.20% 42.73% 25.07% FINANCIAL SERVICES TELECOM 2.70% 2.51% OTHERS 1.79% MEDIA & ENTERTAINMENT 1.08%

10 Money Market Fund Objective: To provide reasonable returns, at a high level of safety and liquidity for capital conservation for the Policyholder GOVERNMENT 0.00% Strategy: To make judicious investments in high quality debt and money market instruments to protect capital of the Policyholder with very low level of risk CORPORATE DEBT 0.00% EQUITY 0.00% % STATE BANK OF BIKANER AND JAIPUR CD (MD % STATE BANK OF PATIALA CD (MD 16/12/2011) 8.49% BANK OF INDIA CD (MD 19/12/2011) 8.48% CANARA BANK CD (MD 21/12/2011) 8.48% PUNJAB AND SINDH BANK CD (MD 30/05/2011) 7.63% SHAPOORJI PALLONJI N COMPANY LTD CP (MD % INDIA CEMENTS LTD CP (MD 09/12/2011) 6.88% SUNDARAM BNP PARIBAS HOME FINANCE CP (MD 6.53% CENTURY TEXTILES AND INDUSTRIES LIMITED C 6.48% STATE BANK OF HYDERABAD CD (MD 04/01/2012) 4.83% Other 18.38% % 2.73% MM BM 97.27% % Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Mar-10 May-10 Sep-10 Nov-10 Less than 1 year

11 GOVERNMENT 0.00% CORPORATE DEBT 72.72% 8.5% EXPORT IMPORT BANK OF INDIA % L I C HOUSING FINANCE LTD % 6.85% SMALL INDUSTRIES DEVELOPMENT BANK O 6.40% 7.35% HINDUSTAN PETROLEUM CORPN. LTD % 7.73% BHARAT PETROLEUM CORPN. LTD % 12.25% POWER GRID CORPN. OF INDIA LTD % 7.1% POWER GRID CORPN. OF INDIA LTD % 9.45% HOUSING DEVELOPMENT FINANCE CORPN. 3.88% 9.21% KOTAK MAHINDRA PRIME LTD % 10% NATIONAL BANK FOR AGRI. AND RURAL DEVE 3.77% OTHER CORPORATE DEBT 19.57% Short Term Debt Fund Objective: To provide capital preservation at a high level of safety & liquidity through judicious investments in high quality short term debt instruments Strategy: To actively manage the fund by building a portfolio of fixed income instruments with short term duration. The fund will invest in government securities, high rated corporate bonds, good quality money market instruments and other fixed income securities. The quality & duration of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity % 72.72% SECURITISED DEBT 0.00% 27.28% AA+ 2.60% AA- 5.69% AA 6.94% Short Term Debt BM 59.55% 25.21% 87.77% Jul-09 Sep-09 Nov-09 Mar-10 May-10 Sep-10 Nov-10 Less than 2 years 12.23% 2 to 7years

12 GOVERNMENT 26.07% Income Advantage Fund Objective: To provide capital preservation and regular income, at a high level of safety over a medium term horizon by investing in high quality debt instruments 8.2% GOVERNMENT OF INDIA % 8.28% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 8.26% GOVERNMENT OF INDIA % 8.08% GOVERNMENT OF INDIA % 8.32% GOVERNMENT OF INDIA % Strategy: To actively manage the fund by building a portfolio of fixed income instruments with medium term duration. The fund will invest in government securities, high rated corporate bonds, high quality money market instruments and other fixed income securities. The quality of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity. CORPORATE DEBT 46.33% 8.55% L I C HOUSING FINANCE LTD % 8.75% INDIAN RAILWAY FINANCE CORPN. LTD % 10.48% ULTRATECH CEMENT LTD % 9.3% HOUSING DEVELOPMENT FINANCE CORPN. L 3.86% 8.2% ASHOK LEYLAND LTD % 9.9% HOUSING DEVELOPMENT FINANCE CORPN. L 2.98% 8.95% POWER FINANCE CORPN. LTD % 10% NATIONAL BANK FOR AGRI. AND RURAL DEVE 1.92% 9.9% TATA MOTORS LTD % 9.21% KOTAK MAHINDRA PRIME LTD % OTHER CORPORATE DEBT 13.73% SECURITISED DEBT 0.00% 46.33% 36.87% AA 2.03% AA+ 4.03% 27.60% G-Secs 26.07% AA- 6.91% 27.60% 22.12% 28.04% 44.28% 41.65% 14.07%

13 Gilt Fund Objective: To deliver safe and consistent returns over a long-term period by investing in Government Securities. GOVERNMENT 87.24% 7.59% GOVERNMENT OF INDIA % 7.44% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % CORPORATE DEBT 0.00% Strategy: Active fund management at very low level of risk by having entire exposure to government securities & money market instruments, maintaining medium term duration of the portfolio to achieve capital conservation. EQUITY 0.00% 12.76% 12.76% G-Secs 87.24% % 44.06% 34.27% 21.66%

14 Bond Fund Objective: To achieve capital preservation along with stable returns by investing in corporate bonds over medium-term period. GOVERNMENT 0.00% CORPORATE DEBT 75.94% Strategy: To invest in high credit rated corporate bonds, maintaining a short-term duration of the portfolio at a medium level of risk to achieve capital conservation. 9.8% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPM 5.21% 12.65% CHOLAMANDALAM INVESTMENT AND FINANCE C 3.37% 11.5% RURAL ELECTRIFICATION CORPN. LTD % 9.25% POWER GRID CORPN. OF INDIA LTD % 9.1% STATE BANK OF MYSORE % 9.05% STATE BANK OF INDIA % 9.05% RALLIS INDIA LTD % 8.78% MAHINDRA AND MAHINDRA FINANCIAL SERVICES 2.55% 8.73% POWER GRID CORPN. OF INDIA LTD % 7.7% N H P C LTD % OTHER CORPORATE DEBT 46.76% SECURITISED DEBT 0.00% 75.94% 24.06% EQUITY 0.00% 24.06% AA+ 2.67% AA 8.19% AA % 55.20% 19.65% 38.41% 30.30% 31.29%

15 Fixed Interest Fund Objective: To achieve value creation at low risk over a long-term horizon by investing into high quality fixed interest securities. GOVERNMENT 29.65% 8.08% GOVERNMENT OF INDIA % 6.35% GOVERNMENT OF INDIA % 7.99% GOVERNMENT OF INDIA % 7.8% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 8.26% GOVERNMENT OF INDIA % 8.2% GOVERNMENT OF INDIA % 8.24% GOVERNMENT OF INDIA % 8.3% GOVERNMENT OF INDIA % Strategy: To actively manage the fund at a medium level of risk by having entire exposure to government securities, corporate bonds maintaining medium to long-term duration of the portfolio to achieve capital conservation. CORPORATE DEBT 49.09% 10.48% ULTRATECH CEMENT LTD % 9.05% RALLIS INDIA LTD % 7.63% INDIAN RAILWAY FINANCE CORPN. LTD % 9.3% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2.88% L I C HOUSING FINANCE LTD % 12.65% CHOLAMANDALAM INVESTMENT AND FINANCE 2.64% 9.95% TATA MOTORS LTD % 8.84% POWER GRID CORPN. OF INDIA LTD % 11.45% RELIANCE INDUSTRIES LTD % 9.8% NATIONAL BANK FOR AGRI. AND RURAL DEVELO 2.05% OTHER CORPORATE DEBT 18.76% 49.09% G-Secs 29.65% 21.27% EQUITY 0.00% 21.27% 31.36% AA+ 1.70% AA 6.12% AA- 8.91% 16.72% 35.20% FIF BM 32.78% 30.15% 37.06% Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Apr-10 Oct-10