Equity Market Update. March Outlook

Transcription

1 March 2014 Market Update Indian equity markets extended their rally during the month and touched fresh closing highs on the back of huge buying of domestic stocks by Foreign Institutional Investors (FIIs) ahead of general elections. The wholesale and retail inflation fell further in February, which increased hopes that the Central Bank will maintain status quo at its first bi-monthly monetary policy review. However, gains were restricted amid concerns over geo-political tensions in Ukraine and Chinese economic growth. Key benchmark indices, S&P BSE Sensex and CNX Nifty, gained 5.99% and 6.81% to close at 22, and 6,704.20, respectively. Meanwhile, S&P BSE Mid-Cap and S&P BSE Small-Cap outperformed the frontline indices and rose by 8.96% and 9.73%, respectively. Bourses remained subdued initially due to rising tensions between Russia and Ukraine. However, markets recovered soon after the country s Current Account Deficit narrowed sharply during the December quarter. Besides, the manufacturing sector showed signs of improvement as the HSBC Purchasing Managers Index (PMI) for the manufacturing sector rose to one-year high of 52.5, against 51.4 in January. Meanwhile, the headline HSBC Services Business Activity Index rose from 48.3 in the previous month to 48.8 in February. Markets lost some sheen later during the month after the country s merchandise exports declined 3.67% to $25.68 billion in February compared to $26.66 billion in the same month last year. Fall in exports reduced the chances of meeting the export target of $325 billion in the present fiscal. However, markets gained momentum as the month progressed, after annual Consumer Price Index based inflation eased to a 25 month low of 8.10% in February coupled with positive industrial growth in January. Moreover, the Wholesale Price Index-based inflation slowed to a nine-month low of 4.68% in February as prices of vegetables eased significantly. Towards the end of the month, markets continued to touch fresh closing highs for five consecutive trading sessions on the back of sustained buying of Indian stocks by foreign investors. Sentiments improved further after the Government exceeded its $3.1 billion asset sales target for this fiscal. A firm global trend, after the U.S. consumer confidence climbed to a six year high, also boosted domestic bourses. Outlook Market participants will closely track the developments related to general elections, to be held between April 7 and May 12, in nine phases. Besides, the Central Bank s policy review, a series of macro-economic numbers, the trend of Foreign Institutional Investors, the movement of the rupee against the dollar and global oil prices may impact the markets going forward. Investors will also wait for the outcome of the FOMC meeting, due to be held on April Market participants will also track any development related to Ukraine.

2 Debt Market Update Bond yields fell during the month on the back of strong foreign fund inflows into the Indian capital markets ahead of general elections. Initially, bond yields rose as investors were concerned over persisting geopolitical tensions in Ukraine, which continued to weigh on investor sentiments. Emerging markets felt the brunt of dispute between Russia and Ukraine amid a rise in global crude prices, which increased concerns of higher inflation. Daily Market Turnover (in Rs. Cr.) 31,000 26,800 22,600 18,400 14,200 10,000 However, sentiments improved to some Source: CCIL Turnover in Rs. Crore Closing Yield extent on indications that the crisis in Ukraine was easing. The Russian President assured that there was no plan of sending troops to Ukraine, which provided relief to investors. Bond yields got further support after the Current Account Deficit fell sharply for the third quarter on a yearly basis. The Current Account Deficit fell to $4.2 billion, or 0.9% of the Gross Domestic Product (GDP), from $31.9 billion or 6.5% of GDP a year ago. However, gains were capped after the Federal Reserve (Fed) cut its monthly bond-buying program by another $10 billion to $55 billion. The Fed also said that it could start raising interest rates after six months. Investors also remained cautious as they opted to conserve cash ahead of the end of the fiscal year amid tightening liquidity conditions. Investors also decided to refrain from taking large positions ahead of the borrowing calendar for the first half of this fiscal. The Government s borrowing plan for the period April-September came largely in line with market expectations, which boosted investor sentiments later. After moving in the range of 8.72% to 8.90%, the 10-year benchmark bond yield closed 6 basis points (bps) lower at 8.80% compared to the previous month s close of 8.86%. The liquidity condition remained tight due to advance tax outflows. The shortfall remained close to Rs. 50,000 crore during the middle of the month. However, it improved later after the RBI conducted auction of term repo to the tune of Rs. 1,69,000 crore, where the cut-off yield stood in the range of %. The Central Bank released the issuance calendar for marketable dated securities for the period April-September It will borrow a total of Rs. 3,68,000 crore through the auction of Government of India dated securities. The Government will redeem bonds worth Rs. 75,000 crore, thereby making the net Government borrowing for the first half at Rs. 2,93,000 crore. Gross borrowing for the first half stood at 61% of the total budgeted borrowing. Yields on Gilt Securities fell across the maturities in the range of 5 bps to 28 bps. It contracted the most on 1-year paper and the least on 10-year paper. Corporate Bond yields also declined on the entire segment in the range of 17 bps to 46 bps, with the highest change seen on 1-year maturity and the least on 10-year maturity. The spread between AAA Corporate Bond and Gilt contracted across the yield curve in the range of 5 bps to 20 bps, with the maximum contraction seen on 3-year paper. 3-Mar 10 Year BM Yield Vs. Market Turnover 8-Mar 13-Mar 18-Mar 23-Mar 28-Mar (Closing Yield in %) Outlook Market participants will closely follow the developments related to the general elections. Besides, they will also track a series of important macro-economic data and the RBI s stance on interest rates at its first bi-monthly monetary policy review early in April, which might impact the bond markets. The movement of the rupee against the dollar and the activities of foreign investors will also remain in focus. Next month, the RBI will conduct the auction of 91-days, 182-days and 364-days Government of India Treasury Bills for an aggregate amount of Rs. 75,000 crore. The RBI will also conduct the auction of dated securities for an aggregate amount of Rs. 68,000 crore.

3 SFIN-ULIF00127/08/08FIXEDIFUND140 Debt To generate steady returns at lower risk by investing in a range of debt securities. Debt 28-Aug Money Market/ Fixed Deposits/Cash 52.05% 39.79% 8.16% 50% 100% 52.05% 0% 50% 39.79% 0% 40% 8.16% opportunities and future outlook of the markets. Govt Securities 1.96% 6.30% 4.24% 7.51% 98.84% 1.16% 11.83% GOI 12-Nov % GOI 14-Nov % GOI 03-Jun % GOI 11-Apr % GOI 21-Sep % GOI 10-Dec % GOI 25-Nov Day T-Bill 26-Jun % GOI 21-Sep % GOI 02-Aug % GOI 11-Jun % GOI 24-May Day T-Bill 24-Jul % GOI 15-Feb % GOI 05-Dec Day T-Bill 29-Aug % GOI 02-Aug % GOI 29-Oct % Karnataka SDL % GOI 15-May % GOI 17-Aug % GOI 03-Nov % GOI 08-Jun % GOI 09-Jul % GOI 09-Jul % GOI 02-Jan-2018 Corporate Bond 0.00% Sundaram BNP PHF LTD ZCB 07-Apr % HDB Financial Ser Ltd. 28-Dec % HDB Fin Serv. Ltd. 11-Nov % Kotak Mahindra Prime Ltd. NCD 25-Nov % PFC NCD 20-Feb % REC NCD 19-Nov % FCI Series VB NCD 22-Mar % IL&FS NCD 05-Dec % Tata Sons Ltd. 29-Aug % Bajaj Fin Ltd. 18-May % PFC 29-Jun % PGC Ltd. 29-Aug % LIC Housing Finance 15-Sep % First Blue Home Finance Ltd. 15-Jul % ISEC PD Tier II 17-May % HDFC 26-Nov % Tata Steel Ltd. NCD 23-Apr % Power Grid Corporation Ltd. 29-Mar % MRF Ltd. NCD 27-May % 2026 Series 4 Lower Tier II SBI Bonds. 8.90% PFC 15-Mar % PFC 15-Apr % Jagran Prakashan 17-Dec % NCRPB Corp Bond 04-Aug % PGC NCD 09-Mar-2027 Corporate Bond 6.1% 4.4% 3.4% 2.9% 2.9% 2.5% 2.5% 1.2% 1.0% 0.9% 0.4% 0.2% 5 5.7% 3.9% 1.0% 0.7% 39.8% 0.0% 5.6% 2.5% 5.36 ^Benchmark return has been computed by applying benchmark weightages of 75% I-SEC G-Sec (MI) Index, 20% CRISIL Bond Index & 5% CRISIL Liquid Index.

4 SFIN-ULIF00227/08/08BALANCFUND140 Balance To generate balanced returns by investing in debt securities to provide stability and by investing in equities to provide potentially enhanced returns through capital appreciation. Balance 28-Aug Money Market/ Fixed Deposits/Cash 30.75% 28.50% 34.52% 6.23% Mining of Coal & Lignite Manf. of rubber & plas cs prod. Crop & Animal Pro,Hunt & Related Serv Act. Telecommunica ons Manf. of machi. & equipment n.e.c. Extrac. of crude petrol. & natural gas Manf. of tex les Air transport Manf. of other transport equipment Manufacture of beverages Manf. of electrical equipment Mining of Metal Ores Manf. of basic metals Manf. of other non-metallic mineral prod. Manf. of chemic.s & chemic. prod. Manf. of motor vehic,trailr & semi-trailr Manf. of pharma, medic, chem.& botani Prod Manf. of coke & re ned petrol. prod. Manf. of tobacco prod. Infrastructure Sector Compt prgm, consult. & related ac vit. Financial & insur. ac vit % 50% 20% 50% 0% 50% 0% 40% 6.23% The actual asset allocation will remain within the 'minimum' and 'maximum' range based on market opportunities and future outlook of the markets. 4.61% 8.08% 6.72% 7.19% Sectoral Break-Up** Govt Securities % 1.78% % 28.50% 34.52% Infosys Ltd. ITC Ltd. ICICI Bank Ltd. Tata Consultancy Services Ltd. Reliance Industries Ltd. Larsen & Toubro Ltd. Housing Development Finance Corpn. Ltd. HDFC Bank Ltd. s 9.15% GOI 14-Nov % GOI 05-Dec % GOI 11-Apr % GOI 12-Nov % GOI 21-Sep % GOI 17-Aug % GOI 03-Jun % GOI 29-Oct % GOI 08-Jun % GOI 15-Feb % GOI 03-Nov % GOI 15-May % GOI 02-Aug % GOI 21-Sep % GOI 11-Jun % GOI 09-Jul % GOI 02-Jan-2018 Corporate Bond 9.65% ISEC PD Tier II 17-May % Power Grid Corporation Ltd. 29-Mar % PFC 15-Apr % PFC NCD 20-Feb % REC NCD 19-Nov % PFC 29-Jun % Hindalco Inds. Ltd. NCD 25-Apr % Jagran Prakashan 17-Dec % Tata Steel Ltd. NCD 23-Apr % HDB Financial Ser Ltd NCD 28-Dec % PFC 15-Mar % PGC Ltd. 29-Aug % FCI Series VB NCD 22-Mar % Sundaram BNP PHF LTD ZCB 07-Apr % First Blue Home Finance Ltd. 15-Jul % Bajaj Fin Ltd. 18-May % PGC Ltd. NCD 08-Jul % HDB Fin Serv LTD. NCD 11-Nov % NCRPB Corp Bond 04-Aug % LIC Housing Finance 15-Sep % PGC Ltd. NCD 08-Jul % MRF Ltd. NCD 27-May % IL&FS NCD 05-Dec % Kotak Mahindra Prime Ltd. NCD 25-Nov % HDFC 26-Nov % 2026 Series 4 Lower Tier II SBI Bonds. Corporate Bond 2.4% 15.5% 3 6.5% 2.9% 2.4% 1.5% 1.0% 0.9% 0.9% 0.3% 0.2% 28.5% 1.0% 0.7% 0.4% 34.5% 0.2% 3.3% 5.64 **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 30% NSE Nifty, 35% I-SEC G-Sec (MI) Index, 25% CRISIL Bond Index & 10% CRISIL Liquid Index.

5 SFIN-ULIF00327/08/08GROWTHFUND140 Growth To generate higher returns through capital appreciation in the long term by investing in diversified equities. Debt investment will provide relatively more stability and diversification. Growth 28-Aug Money Market/ Fixed Deposits/Cash 60.20% 14.78% 18.48% 6.54% Mining of Coal & Lignite Manf. of rubber & plas cs prod. Crop & Animal Pro,Hunt & Related Serv Act. Manf. of tex les Air transport Extrac. of crude petrol. & natural gas Manf. of other non-metallic mineral prod. Manf. of machi. & equipment n.e.c. Manufacture of beverages Manf. of electrical equipment Manf. of other transport equipment Mining of Metal Ores Manf. of basic metals Telecommunica ons Manf. of chemic.s & chemic. prod. Manf. of motor vehic,trailr & semi-trailr Manf. of coke & re ned petrol. prod. Manf. of pharma, medic, chem.& botani Manf. of tobacco prod. Infrastructure Sector Compt prgm, consult. & related ac vit % 80% 60.20% 10% 30% 14.78% 0% 30% 18.48% 0% 40% 6.54% opportunities and future outlook of the markets 6.86% 8.68% 8.72% 7.02% Sectoral Break-Up** Govt Securities % 2.55% Infosys Ltd. ITC Ltd. ICICI Bank Ltd. Reliance Industries Ltd. Tata Consultancy Services Ltd. Housing Development Finance Corpn. Ltd. HDFC Bank Ltd. Larsen & Toubro Ltd. Tata Motors Ltd. Sun Pharmaceutical Inds. Ltd. Axis Bank Ltd. Wipro Ltd. Ultratech Cement Ltd. Oil & Natural Gas Corpn. Ltd. s 9.15% GOI 14-Nov % GOI 11-Apr % GOI 05-Dec % GOI 21-Sep % GOI 12-Nov % GOI 08-Jun % GOI 03-Nov % GOI 15-Feb % GOI 02-Aug % GOI 09-Jul % GOI 15-May % GOI 17-Aug % GOI 09-Jul % GOI 02-Jan-2018 Corporate Bond 8.82% PFC NCD 20-Feb % PFC 29-Jun % PFC 15-Apr % Hindalco Inds. Ltd. NCD 25-Apr % HDB Financial Ser Ltd. 28-Dec % ISEC PD Tier II 17-May % Tata Steel Ltd. NCD 23-Apr % FCI Series VB NCD 22-Mar % Power Grid Corporation Ltd. 29-Mar % REC NCD 19-Nov % IL&FS NCD 05-Dec % Kotak Mah.Prime Ltd. 25-Nov % PFC 15-Mar % Bajaj Fin Ltd. 18-May % Jagran Prakashan 17-Dec % NCRPB Corp Bond 04-Aug % LIC Housing Finance 15-Sep % 2026 Series 4 Lower Tier II SBI Bonds. 11% First Blue Home Finance Ltd. 15-Jul-2016 Corporate Bond 5.4% 4.8% 4.0% 3.6% 3.4% 3.1% 3.0% 2.2% 1.2% 21.2% 60.2% 4.3% 2.5% 1.0% 0.3% 0.2% 0.2% 0.1% 0.1% 14.8% 1.2% 0.3% 0.3% 18.5% 3.2% 2.5% 4.38 Financial & insur. ac vit **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 60% NSE Nifty, 15% I-SEC G-Sec (MI) Index, 15% CRISIL Bond Index & 10% CRISIL Liquid Index

6 SFIN-ULIF00427/08/08LARCAPFUND140 Large Cap To generate higher returns through capital appreciation in long term from a diversified equity portfolio. Large Cap 28-Aug % 100% 96.59% 0% 40% 3.41% opportunities and future outlook of the markets. Sectoral Break-Up** Mining of Coal & Lignite Manf. of rubber & plas cs prod. Crop & Animal Pro,Hunt & Related Serv Act. Manf. of tex les Air transport 9.97% 9.40% 10.26% 6.90% % 5.34% 96.59% 3.41% Infosys Ltd. 8.8% ITC Ltd. 8.0% ICICI Bank Ltd. 6.5% Reliance Industries Ltd. 5.9% Tata Consultancy Services Ltd. 5.4% Housing Development Finance Corpn. Ltd. 5.1% HDFC Bank Ltd. 4.9% Larsen & Toubro Ltd. 4.5% Tata Motors Ltd. 3.6% Sun Pharmaceutical Inds. Ltd. 3.1% Axis Bank Ltd. 2.3% Oil & Natural Gas Corpn. Ltd. Ultratech Cement Ltd. Wipro Ltd. State Bank Of India Dr. Reddys Laboratories Ltd. 1.5% Hindustan Unilever Ltd. Indusind Bank Ltd. Sesa Goa Ltd. United Spirits Ltd. Kotak Mahindra Bank Ltd. 1.2% s 23.1% 96.6% 0.1% Extrac. of crude petrol. & natural gas Telecommunica ons Manf. of machi. & equipment n.e.c. Manufacture of beverages Manf. of electrical equipment Manf. of other transport equipment Mining of Metal Ores Manf. of basic metals Manf. of other non-metallic mineral prod. Manf. of chemic.s & chemic. prod. Manf. of motor vehic,trailr & semi-trailr Manf. of coke & re ned petrol. prod. Manf. of pharma, medic, chem.& botani Manf. of tobacco prod. Infrastructure Sector Compt prgm, consult. & related ac vit Financial & insur. ac vit **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 100% NSE Nifty

7 SFIN-ULIF00509/02/09PENDEBFUND140 Pension Debt To generate steady returns at lower risk by investing in a range of debt securities. Pension Debt 09-Feb % 100% 31.32% 60% 100% 57.04% 0% 40% 11.64% The actual asset allocation will remain within the 'minimum' and 'maximum' range based on market opportunities and future outlook of the markets. Govt Securities 31.32% 57.04% 11.64% 8.20% GOI 15-Feb % 8.28% GOI 21-Sep % 8.97% GOI 05-Dec % 8.12% GOI 10-Dec % 11.83% GOI 12-Nov % GOI 11-Apr % 9.15% GOI 14-Nov % GOI 17-Aug % GOI 02-Jan % 7.16% GOI 20-May % 3 Corporate Bond 2.73% 4.00% 5.47% 5.91% 98.62% 1.38% 9.55% Hindalco Inds. Ltd. NCD 25-Apr % Sundaram BNP PHF LTD ZCB 07-Apr % Bajaj Fin Ltd. 18-May % HDB Fin Serv LTD. NCD 11-Nov % IL&FS NCD 05-Dec % 2026 Series 4 Lower Tier II SBI Bonds. 9.97% HDB Financial Ser Ltd NCD 28-Dec % ISEC PD Tier II 17-May % NCRPB Corp Bond 04-Aug % PFC NCD 20-Feb % Power Grid Corporation Ltd. 29-Mar % Power Grid Corporation Ltd. 21-Oct % MRF Ltd. NCD 27-May % First Blue Home Finance Ltd. 15-Jul % PFC 15-Mar % PFC 29-Jun % PGC Ltd. 29-Aug % PGC NCD 09-Mar % Tata Steel Ltd. NCD 23-Apr-2022 Corporate Bond 6.7% 5.3% 5.1% 3.4% 3.3% 3.3% 57.0% 4.0% 2.9% 4.7% 6.45 ^Benchmark return has been computed by applying benchmark weightages of 95% CRISIL Bond Index & 5% CRISIL Liquid Index.

8 SFIN-ULIF00609/02/09PENBALFUND140 Pension Balance To generate balanced returns by investing in debt securities to provide stability and by investing in equities to provide potentially enhanced returns through capital appreciation. Pension Balance 09-Feb % 21.53% 42.05% 5.93% 10% 40% 20% 90% 30.49% 21.53% 20% 90% 42.05% 0% 40% 5.93% opportunities and future outlook of the markets. Infosys Ltd. ITC Ltd. ICICI Bank Ltd. 2.4% Tata Consultancy Services Ltd. Reliance Industries Ltd. Govt Securities Housing Development Finance Corpn. Ltd. Larsen & Toubro Ltd. 1.5% HDFC Bank Ltd. s 15.5% % GOI 21-Sep % 8.20% GOI 15-Feb % GOI 24-May % 11.83% GOI 12-Nov % 8.48% 9.15% GOI 14-Nov % 9.72% 6.25% GOI 02-Jan % GOI 05-Dec % 2.48% Sectoral Break-Up** 7.02% GOI 17-Aug-2016 Corporate Bond 9.55% Hindalco Inds. Ltd. NCD 25-Apr % Sundaram BNP PHF LTD ZCB 07-Apr % HDB Financial Ser Ltd NCD 28-Dec % 7.8% Manf. of rubber & plas cs prod % Kotak Mahindra Prime Ltd. NCD 25-Nov-2016 Mining of coal & lignite % Tata Sons Ltd. 29-Aug-2022 Crop & Animal Pro,Hunt & Related Serv Act % ISEC PD Tier II 17-May-2022 Telecommunica ons % PFC 29-Jun-2022 Manf. of machi. & equipment n.e.c. Extrac. of crude petrol. & natural gas Manf. of tex les Air transport Manf. of other transport equipment Manufacture of beverages Manf. of electrical equipment Mining of metal ores % PFC 15-Apr % PGC Ltd. 29-Aug % NCRPB Corp Bond 04-Aug % PGC NCD 09-Mar % LIC Housing Finance 15-Sep % PFC NCD 20-Feb % REC NCD 19-Nov-2022 Manf. of basic metals 1.92 Corporate Bond 4 Manf. of other non-metallic mineral prod % Manf. of chemic.s & chemic. prod Manf. of motor vehic,trailr & semi-trailr Manf. of coke & re ned petrol. prod. Manf. of pharma, medic, chem.& botani Manf. of tobacco prod % 6.72 Infrastructure sector 9.00 Compt prgm, consult. & related ac vit Financial & insur. ac vit **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 30% NSE Nifty, 60% CRISIL Bond Index & 10% CRISIL Liquid Index.

9 SFIN-ULIF00709/02/09PENGROFUND140 Pension Growth To generate higher returns through capital appreciation in the long term by investing in diversified equities. Debt investment will provide relatively more stability and diversification. Pension Growth 09-Feb % 12.94% 24.34% 3.04% 40% 80% 0% 60% 59.68% 12.94% 0% 60% 24.34% 0% 40% 3.04% Infosys Ltd. 5.4% The actual asset allocation will remain within the 'minimum' and 'maximum' range based on market opportunities and future outlook of the markets. ITC Ltd. ICICI Bank Ltd. 4.8% 3.9% Reliance Industries Ltd. Tata Consultancy Services Ltd. 3.4% Govt Securities Housing Development Finance Corpn. Ltd. 3.1% HDFC Bank Ltd. 3.0% Larsen & Toubro Ltd. Tata Motors Ltd. 2.3% Sun Pharmaceutical Inds. Ltd. Axis Bank Ltd. Wipro Ltd. Oil & Natural Gas Corpn. Ltd. 6.73% 8.88% 12.74% 12.55% 97.64% 2.36% Sectoral Break-Up** Ultratech Cement Ltd. Dr. Reddys Laboratories Ltd. s 8.12% GOI 10-Dec % GOI 17-Aug % GOI 14-Nov % GOI 21-Sep % GOI 15-Feb % GOI 05-Dec % GOI 24-May % 19.8% 59.7% Mining of coal & lignite % GOI 02-Jan % Manf. of rubber & plas cs prod % Crop & Animal Pro,Hunt & Related Serv Act Corporate Bond Manf. of tex les % Sundaram BNP PHF LTD ZCB 07-Apr-2017 Air transport % PFC 15-Mar-2015 Extrac. of crude petrol. & natural gas % PFC 15-Apr-2022 Telecommunica ons % FCI Series VB NCD 22-Mar % Manf. of machi. & equipment n.e.c % Power Grid Corporation Ltd. 29-Mar-2016 Manufacture of beverages % HDB Financial Ser Ltd NCD 28-Dec-2018 Manf. of electrical equipment % ISEC PD Tier II 17-May-2022 Manf. of other transport equipment % Bajaj Fin Ltd. 18-May-2021 Mining of metal ores % PFC 29-Jun-2022 Manf. of basic metals % Jagran Prakashan 17-Dec-2017 Manf. of other non-metallic mineral prod % NCRPB Corp Bond 04-Aug-2020 Manf. of chemic.s & chemic. prod % Hindalco Inds. Ltd. NCD 25-Apr-2022 Manf. of motor vehic,trailr & semi-trailr % LIC Housing Finance 15-Sep-2020 Manf. of coke & re ned petrol. prod % PFC NCD 20-Feb-2020 Manf. of pharma, medic, chem.& botani 7.00 Corporate Bond 24.3% Manf. of tobacco prod % Infrastructure sector 8.93 Compt prgm, consult. & related ac vit % Financial & insur. ac vit **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 60% NSE Nifty, 30% CRISIL Bond Index & 10% CRISIL Liquid Index. 6.36

10 SFIN-ULIF00809/02/09PENDYEFUND140 Pension Dynamic To generate higher returns through capital appreciation in long term from a diversified equity portfolio. Pension Dynamic 09-Feb % 0% 100% 96.60% 0% 100% 3.40% 3.40% opportunities and future outlook of the markets. Sectoral Break-Up** 9.84% 13.71% 10.26% 15.14% 95.54% 4.46% Infosys Ltd. ITC Ltd. ICICI Bank Ltd. Reliance Industries Ltd. Tata Consultancy Services Ltd. Housing Development Finance Corpn. Ltd. HDFC Bank Ltd. Larsen & Toubro Ltd. Tata Motors Ltd. Sun Pharmaceutical Inds. Ltd. Axis Bank Ltd. Wipro Ltd. Ultratech Cement Ltd. Oil & Natural Gas Corpn. Ltd. State Bank Of India Dr. Reddys Laboratories Ltd. Hindustan Unilever Ltd. Sesa Goa Ltd. United Spirits Ltd. Indusind Bank Ltd. Kotak Mahindra Bank Ltd. Tata Steel Ltd. 8.9% 8.1% 6.4% 5.8% 5.4% 5.0% 5.0% 4.6% 3.6% 3.1% 2.3% 1.5% 1.2% Mining of coal & lignite Manf. of rubber & plas cs prod. Crop & Animal Pro,Hunt & Related Serv Act. Manf. of tex les Extrac. of crude petrol. & natural gas Air transport s 22.2% 96.6% 0.4% 2.2% 0.7% Telecommunica ons 1.01 Manf. of machi. & equipment n.e.c Manufacture of beverages 1.33 Manf. of electrical equipment 1.45 Mining of metal ores 1.73 Manf. of other transport equipment 1.77 Manf. of basic metals 1.84 Manf. of other non-metallic mineral prod Manf. of chemic.s & chemic. prod Manf. of motor vehic,trailr & semi-trailr 5.60 Manf. of coke & re ned petrol. prod Manf. of pharma, medic, chem.& botani prod 6.74 Manf. of tobacco prod Infrastructure sector 9.10 Compt prgm, consult. & related ac vit Financial & insur. ac vit **Sector Classification is as per National Industrial Classification ( All Economic Activities) NIC ^Benchmark return has been computed by applying benchmark weightages of 100% NSE Nifty.

11 SFIN-ULIF00920/01/11LIQUIDFUND140 Liquid To generate steady return at lower risk by investing in range of short term debt/liquid money market securities. Liquid 20-Jan % 100% 100% opportunities and future outlook of the markets. T-Bill 182 Day T-Bill 22-May Day T-Bill 04-Sep Day T-Bill 26-Jun-2014 T-Bill 37.9% 36.8% 25.2% 99.9% 0.0% 0.0% 0.1% % 6.75% 7.79% 7.75% 0.00% ^Benchmark return has been computed by applying benchmark weightages of 100% of Liquid benchmark.

12 SFIN-ULIF01024/02/11DISCONFUND140 Discontinued To generate steady return at lower risk by investing in range of short term debt securities to meet the minimum guarantee of 4% p.a. Discontinued Policy 24-Feb Money Market/ Fixed Deposits/Cash 0% 100% 100% opportunities and future outlook of the markets 7.97% 7.77% 7.79% 7.79% 0.00% T-Bill 364 Day T-Bill 26-Jun Day T-Bill 20-Mar Day T Bill 27-Mar Day T-Bill 22-May Day T-Bill 08-May Day T-Bill 17-Jul Day T-Bill 29-Aug Day T-Bill 27-Nov Day T-Bill 19-Feb Day T-Bill 24-Apr Day T-Bill 13-Mar Day T-Bill 16-Oct Day T-Bill 12-Jun Day T-Bill 29-May Day T-Bill 04-Sep Day T-Bill 08-May Day T-Bill 07-Aug Day T-Bill 08-Jan Day T-Bill 24-Jul-2014 T-Bill 14.2% 13.3% 6.6% 5.2% 4.6% 4.3% 4.3% 4.2% 4.1% 4.0% 3.6% 3.2% 3.1% 2.3% 2.2% 87.6% 10.2% 0.29 ^Benchmark return has been computed by applying benchmark weightages of 100% of Liquid benchmark.

13 About DHFL Pramerica Life Insurance (DPLI) DPLI is a joint venture between Dewan Housing Finance Corporation Ltd. (DHFL), India s second largest private sector housing finance company and Prudential International Insurance Holdings, Ltd. (PIIH), a fully owned subsidiary of Prudential Financial, Inc. (PFI), a financial services leader headquartered in the U.S. DPLI represents the coming together of two renowned financial services organizations with a legacy of business excellence spread over decades. The life insurance joint venture agreement between the two partners was signed in July DHFL Pramerica Life Insurance, which was earlier known as DLF Pramerica Life Insurance started operations in India on September 01, 2008 and has a pan India presence through multiple distribution channels which have been customized to address the specific insurance needs of diverse customer segments. The Company is committed to providing protection and quality financial advice to its customers. For further information on the Company, please visit About DHFL DHFL was founded in 1984 by Late Shri Rajesh Kumar Wadhawan with a vision to provide financial access to the lower and middle income segments of the society. Today, led by Mr. Kapil Wadhawan, CMD, DHFL, the Company is one of India s leading mortgage finance institutions with presence in over 450 locations across the country, in addition to representative offices in Dubai and London. All through its years of growth, DHFL has stayed with its core vision of financial inclusion. The Company s wide network, coupled with insights into local customer needs has enabled the Company to provide meaningful financial access to customers even in India s smallest towns. With a strong business foundation, an extensive distribution network, proven industry expertise and a deep understanding of the Indian customer, DHFL is one of India s largest financial services companies. For further information, please visit About PFI Pramerica is a trade name used by Prudential Financial, Inc. (PFI), a company incorporated and with its principal place of business in the United States, and its affiliated companies in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2013, has operations in the United States, Asia, Europe and Latin America. PFI s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., PFI s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. Pramerica and the Rock Logo are proprietary servicemarks and may not be used without the permission of the owner. DHFL Pramerica Life Insurance Company Limited Registered Office and Communication Address DHFL Pramerica Life Insurance Company Limited, 4th Floor, Building No. 9B, Cyber City, DLF City Phase III, Gurgaon Haryana Insurance is the subject matter of solicitation. IRDA Registration Number: 140 Copyright 2010, DHLF Pramerica Life Insurance Company Limited. All rights reserved.