Key Indices 31-Aug-12 31-Jul-12 % Change

Nifty 5258.50 5229.00 0.56%

Sensex 17429.56 17236.18 1.12%

BSE 100 5251.07 5229.16 0.42%

Dow Jones 13090.84 13008.68 0.63%

Nikkei 8839.91 8695.06 1.67%

Hang Seng 19482.57 19796.81 -1.59%

Nasdaq 3066.97 2939.52 4.34%

KOSPI 1905.12 1881.99 1.23%

Market Outlook

The feel good factor has returned to the markets. The first half of September saw the government take a series of economicallycrucial decisions, signaling its intent to kick start growth. Following 2 years of policy paralysis the government announced a series ofmuch awaited reforms including a hike in the price of diesel, opening up FDI limits in many sectors and disinvestment in four PSUcompanies.

The Rs. 5 per litre increase in diesel prices and capping the number of LPG cylinders per household to 6, sends a strong signal thatthe government is willing to act to not only bring down subsidies but also direct subsidies to those who actually need it. Thegovernment announced that it would allow Foreign Direct Investments (FDI) to the extent of 51% in multi brand retail, 49% in theairline sector, 74% in the broadcasting sector and 26% in power exchanges. These steps signal the government’s intent toreinvigorate the investment cycle and catalyze overseas investment in some of the key sectors. The government also cleared thestake sale in four public sector undertaking – MMTC, Oil India Limited, NALCO and Hindustan Copper. The stake sale is expectedto bring in Rs. 15000 Crores against the budgeted target of Rs. 30000 Crores and will help moderate the fiscal deficit.

4500

5500

FII MF

56.00

58.00

Rs v/s USD

4000

4500

5000

5500

6000

14000

16000

18000

20000

22000Ju

n-11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Sensex Nifty

In line with the government reforms push, the Reserve Bank India, in its third mid-quarter Monetary Policy Review for September2012, reduced the Cash Reserve Ratio (CRR) by 25 basis points. This is expected to inject liquidity to the extent of Rs. 17000Crores into the banking sector, giving further impetus to the growth momentum.

On the macro front, there continues to be cause for concern. Headline Inflation has remained persistently high at 7.6% on accountof an increase in prices of agricultural commodities, a sharp upward revision in electricity tariffs and a rise in manufactured productinflation. The recent hike in diesel prices is also expected to push up fuel and manufacturing inflation.

GDP growth remained sluggish, though the Q1FY13 growth at 5.5% was marginally better than the previous quarter growth of5.3%. The growth slowdown is particularly sharp in the industrial sector. Industrial production for July increased by a mere 0.1%after a big decline of 1.8% in June. Manufacturing growth declined by 0.2%, with the Capital goods sector recording a 5% year onyear fall. Manufacturing PMI is at the lowest level and this is the fifth consecutive month in which capital goods growth has fallen.

Declining exports and high oil prices have pushed the trade deficit to an unsustainable level of US$15.5 billion in August. The tradedeficit is expected to deteriorate further as exports will remain under pressure on account of weak external demand. While themacro situation remains worrisome, both, the Prime Minister and the Finance Minister have indicated that there will be steps tofollow in the areas of fiscal consolidation, inflation management and growth stimulus.

(2500)

(1500)

(500)

500

1500

2500

3500

4500

Jun

e 11

Ju

ly 1

1

Au

g 1

1

Sep

t 11

Oct

11

No

v 11

Dec

11

Jan

12

Feb

12

Mar

12

Ap

r 12

May

12

Ju

n 1

2

Jul 12

In U

S $

MN

42.00

44.00

46.00

48.00

50.00

52.00

54.00

56.00

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

No

v-11

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Ap

r-12

May

-12

Jun-

12

Jul-1

2

Key Indices 31-Aug-12 31-Jul-12 % Change

10 year G-Sec 8.24% 8.25% -0.12%

5 Year G-Sec 8.23% 8.19% 0.49%

91 Day T Bill 8.21% 8.18% 0.37%

364 day T-Bill 8.09% 8.00% 1.13%

MIBOR 8.66% 8.88% -2.48%

Call Rates 7.94% 8.02% -1.00%

Inflation NA NA NA

Market Outlook

While the positive development on the domestic front lifted sentiment, the monetary stimulus by the US Federal Reserve and the ECB

provide further fuel to the market rally. Both, the Fed and the ECB have made open-ended commitments to infuse liquidity through asset

purchases.

The QE3 program announced by the Fed is likely to put downward pressure on long term interest rates, support mortgage markets and

give a boost to the asset markets in US. It is expected to result in an improvement in labour market conditions and stimulate growth. The

ECBs bond buying program has been able to correct short term distortion in the European bond market. This is expected to help the

distressed European countries reduce their debt burden and improve the investment climate.

The combined action of the Fed and the ECB has triggered a global ‘risk on’ rally that will benefit the Indian markets by increasing FII

flows. FIIs have invested, to date, over US$12 billion in the Indian equity market. Equity market rallied smartly to levels of close to 18500, a

16% up move from the June 2012 low of 16000.

The Sensex currently trades at a 14.5xFY13E one year forward earnings and valuations are quite attractive. Continued action from the

25

50

75

100

125

150

5.0

6.0

7.0

8.0

9.0

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

10 Yr G-Sec yield 5 year AAA Corporate Bond Spread

bps

perc

enta

ge (%

)

The Sensex currently trades at a 14.5xFY13E one year forward earnings and valuations are quite attractive. Continued action from the

government and monetary easing from RBI could result in equity markets breaking out in an upward direction.

Debt markets are expected to be range bound, with a positive bias.

As liquidity is comfortable and concerns of the fiscal front have reduced, any positive action from the RBI in terms of a rate cut could lead

to yields dropping. Corporate bonds are expected to trade with reduced spreads as issuances have not kept pace with the demand.

�

Learning Curve

Importance of staying invested over long-term

The key to wealth creation is to begin early and invest regularly. Regular investments, however small, can result in a significant wealth creation over a period of time. The longer you stay invested, better the effect of compounding. To illustrate, consider two individuals, A (20 years old) and B (30 years old), who start investing Rs. 1000 & Rs. 1500 respectively every year till they reach the age of 50. Both of them would have invested the same amount, i.e. Rs 30000. However, assuming a 10% return on investments, A would have accumulated around Rs. 181000 while B would have accumulated only Rs. 95000, nearly half the amount. This is the magic of compounding. B would have to invest Rs. 2850 p.a., 2.8 times that of A, to get Rs.180000 at the age of 50. Different asset classes have different degrees of risk & return associated with them. Equities have the potential to deliver higher return than fixed-income instruments but also carry high risk. One should invest in asset classes that have the potential to generate returns which are adequate to meet ones’ financial goals at the desired level of risk. Investments should be made with a long-term perspective as markets can be very volatile in short-term. However, over a longer period of time market volatility drops significantly. Despite witnessing periods of negative returns, the Sensex has delivered a CAGR of 19.14% over the last 10 years. Following a long-term disciplined investment approach and remaining invested even during uncertain times will ensure that investors reap the benefit from their financial investments. An analysis of the rolling returns for equity over a 5 year, 10 year and a 20 year period shows that equity returns have been positive over all time horizons. The 20 year rolling return, for all the years, has never fallen below 15.9%. Long -term investments in equity thus yields handsome returns.

Terminal Year of

Investment

Rolling Return

5 Year 10 Year 20 Year

1999 7.3% 23.1% 23.7%

2000 7.3% 17.7% 21.4%

2001 4.1% 7.7% 17.8%

2002 2.4% 4.8% 17.9%

2003 20.3% 9.2% 21.1%

2004 9.9% 8.6% 21.3%

2005 22.5% 14.9% 18.7%

2006 35.4% 19.7% 21.1%

2007 44.0% 23.2% 24.2%

2008 19.1% 19.7% 19.1%

2009 32.0% 21.0% 22.0%

2010 27.0% 24.8% 21.2%

2011 12.8% 24.1% 15.9%

*Rolling Return for N (number of years) = (Return for 1st Period + Return for 2nd period and so on… + Return for Nth Period)/ N (number of years)

It has been proved that investment in equity, over the medium to long term, delivers a better CAGR return than investment in either debt or gold.

19

.14

%

15

.70

%18

.17

%

5.3

0%

9.6

2%

10

.78

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Last 10 years Last 30 years

Sensex Gold Gsec

CAGR

ReturnCAGR Return of Sensex and other asset classes

* As on 31st July 2012

Arpita Nanoti

Head – Investment Communication & Advisory

FUND PERFORMANCE AS ON 31st AUGUST 2012

GROUP

Inception Date

Fund Return BM Fund Return BM Fund Return BM Fund Return BM

Last 1 year 8.08% 6.83% 7.61% 6.29% 7.06% 5.67% 6.72% 5.23%

Last 2 years 5.29% 4.40% 3.84% 3.10% 2.19% 1.76% 2.03% 0.84%

Last 3 years 6.70% 5.16% 6.50% 4.80% 6.89% 4.38% 7.65% 4.07%

Last 4 year 10.25% 6.31% 10.11% 6.15% 11.58% 5.85% 13.94% 5.58%

Last 5 years 9.52% 5.31% 8.74% 5.14% 11.13% 4.97% - -

Since Inception 10.85% 13.83% 15.33% 11.87%

Asset Held (Rs. In

Crores)692 327 205 19

GROUP

Inception Date

Fund Return BM Fund Return BM Fund Return BM Fund Return BM Fund Return BM

Last 1 year 9.50% 7.49% 11.03% - 11.96% 7.47% 10.14% 7.59% 10.27% 7.46%

Last 2 years 9.12% 6.92% 9.09% - 9.51% 6.05% 9.25% 6.55% 11.33% 6.05%

Last 3 years 8.01% 5.48% 9.28% - 9.78% 5.55% 8.40% 5.64% - -

Last 4 year 10.34% 5.65% 12.57% - 14.10% 6.30% - - - -

Last 5 years 10.58% - 11.78% - 12.41% 5.15% - - - -

Since Inception 9.62% 11.56% - 8.56% 8.89% 10.10%

Asset Held (Rs. In

Crores)168 165 206 73 1

Fund Name

Secure BSE 100

19-Jun-01 31-Aug-01 31-Aug-01 18-Feb-08

30-Mar-05 28-Jan-07 18-Nov-02 10-Dec-08 23-Mar-10

Money Market Bond Fixed Interest Short Term Debt Income Advantage

Benchmark Composition

Secure Stable Growth Growth Advantage

SFIN

Crisil Composite Bond Index ULGF00212/06/01BSLGSECURE109Secure BSE 100

Stable BSE 100

Growth BSE 100

Growth Advantage BSE 100

Money Market -

Income Advantage -

Fixed Interest -

Short Term Debt Fund -

Bond Fund -

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.

Crisil Composite Bond Index ULGF00212/06/01BSLGSECURE109

Crisil Composite Bond Index ULGF00312/06/01BSLGSTABLE109

Crisil Composite Bond Index ULGF00112/06/01BSLGGROWTH109

Crisil Composite Bond Index ULGF01026/11/07BSLIGGRADV109

Crisil Liquid Fund Index ULGF00824/08/04BSLIGRMMKT109

- ULGF00530/05/03BSLIGRBOND109

Crisil Composite Bond Index ULGF01425/02/10BSLGINCADV109

Crisil Composite Bond Index ULGF00416/07/02BSLGFIXINT109

Crisil Short Term Bond Index ULGF01322/09/08BSLGSHTDBT109

SECURITIES HOLDING

GOVERNMENT SECURITIES 25.78%

7.8% GOVERNMENT OF INDIA 2021 4.28%8.2% GOVERNMENT OF INDIA 2022 3.25%8.79% GOVERNMENT OF INDIA 2021 2.34%8.13% GOVERNMENT OF INDIA 2022 2.21%8.26% GOVERNMENT OF INDIA 2027 2.07%8.15% GOVERNMENT OF INDIA 2022 1.80%

8.28% GOVERNMENT OF INDIA 2032 1.41%8.28% GOVERNMENT OF INDIA 2027 1.17%6.35% GOVERNMENT OF INDIA 2020 0.97%8.08% GOVERNMENT OF INDIA 2022 0.85%OTHER GOVERNMENT SECURITIES 5.45%

CORPORATE DEBT 32.88%

8.9% STEEL AUTHORITY OF INDIA LTD. 2019 2.77%

9.15% LARSEN AND TOUBRO LTD. 2019 2.47%11.45% RELIANCE INDUSTRIES LTD. 2013 1.63%10.9% RURAL ELECTRIFICATION CORPN. LTD. 2013 1.50%

9.95% TATA MOTORS LTD. 2020 1.28%

11.5% RURAL ELECTRIFICATION CORPN. LTD. 2013 1.16%

8.7% POWER FINANCE CORPN. LTD. 2020 1.12%

9.05% RALLIS INDIA LTD. 2013 1.11%10.25% TECH MAHINDRA LTD. 2014 1.03%10.48% SUNDARAM FINANCE LTD. 2013 0.90%

OTHER CORPORATE DEBT 17.92%

EQUITY 19.55%

RELIANCE INDUSTRIES LTD. 1.31%

Rating Profile

Secure Fund ULGF00212/06/01BSLGSECURE109 Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To build capital and generate better returns at moderate level of risk, over amedium or long-term period through a balance of investment in equity and debt.

Strategy: Generate better returns with moderate risk level through fixed income portfolioand focus on creating long term equity portfolio which will enhance yield of compositeportfolio with low level of risk appetite.

AA-3.44%

AA4.14% AA+

4.35%

P1+/A1+

MMI21.79%

G-Secs25.78%Equities

19.55%

NCD32.88%

RELIANCE INDUSTRIES LTD. 1.31%I T C LTD. 1.29%I C I C I BANK LTD. 1.20%INFOSYS LTD. 0.99%HOUSING DEVELOPMENT FINANCE CORPN. LTD. 0.95%H D F C BANK LTD. 0.86%

LARSEN AND TOUBRO LTD. 0.85%

STATE BANK OF INDIA 0.63%TATA CONSULTANCY SERVICES LTD. 0.57%OIL AND NATURAL GAS CORPN. LTD. 0.53%OTHER EQUITY 10.37%

MMI 21.79%

Maturity Profile

Sectoral Allocation

1.06%

1.68%

1.79%

2.08%

2.22%

2.82%

3.31%

5.09%

7.03%

8.50%

9.18%

10.59%

11.48%

12.63%

19.54%

AGRI RELATED

TELECOM

OTHERS

DIVERSIFIED

AUTO ANCILLIARY

POWER

PHARMA

AUTOMOBILE

CAPITAL GOODS

METAL

FINANCIAL SERVICES

SOFTWARE / IT

OIL AND GAS

FMCG

BANKING

45.16%

15.56%

39.29%

P1+/A1+10.56%

AAA38.21%

Sovereign39.31%

Aug-0

4

Dec-0

4

Apr-

05

Aug-0

5

Dec-0

5

Apr-

06

Aug-0

6

Dec-0

6

Apr-

07

Aug-0

7

Dec-0

7

Apr-

08

Aug-0

8

Dec-0

8

Apr-

09

Aug-0

9

Dec-0

9

Apr-

10

Aug-1

0

Dec-1

0

Apr-

11

Aug-1

1

Dec-1

1

Apr-

12

Aug-1

2

Secure BM

1.00%CEMENTLess than 2 years 2 to 7years 7years & above

SECURITIES HOLDING

GOVERNMENT SECURITIES 21.64%

8.79% GOVERNMENT OF INDIA 2021 3.30%7.8% GOVERNMENT OF INDIA 2021 2.60%8.28% GOVERNMENT OF INDIA 2032 2.59%8.2% GOVERNMENT OF INDIA 2022 2.07%

8.08% GOVERNMENT OF INDIA 2022 1.89%8.3% GOVERNMENT OF INDIA 2040 1.48%7.59% GOVERNMENT OF INDIA 2015 1.30%7.5% GOVERNMENT OF INDIA 2034 1.23%8.26% GOVERNMENT OF INDIA 2027 1.13%7.61% GOVERNMENT OF INDIA 2015 0.96%OTHER GOVERNMENT SECURITIES 3.09%

CORPORATE DEBT 31.21%

8.65% RURAL ELECTRIFICATION CORPN. LTD. 2019 2.91%9.45% RURAL ELECTRIFICATION CORPN. LTD. 2013 2.64%

9.5% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 2012 2.14%11.4% POWER FINANCE CORPN. LTD. 2013 1.72%10.1% POWER GRID CORPN. OF INDIA LTD. 2017 1.58%9.4% NATIONAL HOUSING BANK 2013 1.53%

8.9% POWER FINANCE CORPN. LTD. 2014 1.52%

12.65% CHOLAMANDALAM INVESTMENT AND FINANCE CO. LTD. 20141.42%9.4% POWER FINANCE CORPN. LTD. 2013 1.26%8.6% POWER FINANCE CORPN. LTD. 2014 1.21%OTHER CORPORATE DEBT 13.27%

EQUITY 34.37%

RELIANCE INDUSTRIES LTD. 2.30%

Rating Profile

Stable Fund ULGF00312/06/01BSLGSTABLE109Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To grow your capital through enhanced returns over a medium to long termperiod through investments in equity and debt instruments, thereby providing a goodbalance between risk and return.

Strategy: To earn capital appreciation by maintaining diversified equity portfolio andseek to earn regular return on fixed income portfolio by active management resulting inwealth creation for policyholders.

AA-2.49%

AA+5.23% P1+/A1+

MMI12.78%

G-Secs21.64%

Equities34.37%

NCD31.21%

RELIANCE INDUSTRIES LTD. 2.30%I T C LTD. 2.27%I C I C I BANK LTD. 2.11%INFOSYS LTD. 1.74%HOUSING DEVELOPMENT FINANCE CORPN. LTD. 1.66%H D F C BANK LTD. 1.51%LARSEN AND TOUBRO LTD. 1.48%STATE BANK OF INDIA 1.10%TATA CONSULTANCY SERVICES LTD. 1.01%

OIL AND NATURAL GAS CORPN. LTD. 0.93%

OTHER EQUITY 18.26%

MMI 12.78%

Sectoral Allocation

Maturity Profile

1.04%

1.67%

1.87%

2.10%

2.25%

2.84%

3.31%

5.07%

7.05%

8.65%

9.17%

10.59%

11.41%

12.56%

19.41%

AGRI RELATED

TELECOMMUNICATION

OTHERS

DIVERSIFIED

AUTO ANCILLIARY

POWER GENERATION AND SUPPLY

PHARMACEUTICALS

AUTOMOBILE

CAPITAL GOODS

METAL

FINANCIAL SERVICES

SOFTWARE / IT

OIL AND GAS

FMCG

BANKING

45.80%

21.89%

32.31%

2.49% 5.23% P1+/A1+11.41%

Sovereign36.27%

AAA44.60%

Aug-0

4

Dec-0

4

Apr-

05

Aug-0

5

Dec-0

5

Apr-

06

Aug-0

6

Dec-0

6

Apr-

07

Aug-0

7

Dec-0

7

Apr-

08

Aug-0

8

Dec-0

8

Apr-

09

Aug-0

9

Dec-0

9

Apr-

10

Aug-1

0

Dec-1

0

Apr-

11

Aug-1

1

Dec-1

1

Apr-

12

Aug-1

2

Stable BM

1.00%CEMENTLess than 2 years 2 to 7years 7years & above

SECURITIES HOLDING

GOVERNMENT SECURITIES 15.88%

8.2% GOVERNMENT OF INDIA 2022 4.09%7.8% GOVERNMENT OF INDIA 2021 4.08%8.79% GOVERNMENT OF INDIA 2021 1.75%7.59% GOVERNMENT OF INDIA 2016 1.59%8.15% GOVERNMENT OF INDIA 2022 1.33%8.08% GOVERNMENT OF INDIA 2022 1.06%8.3% GOVERNMENT OF INDIA 2040 0.83%6.9% GOVERNMENT OF INDIA 2019 0.49%7.02% GOVERNMENT OF INDIA 2016 0.41%9.15% GOVERNMENT OF INDIA 2024 0.26%

CORPORATE DEBT 21.33%

8.7% POWER FINANCE CORPN. LTD. 2020 3.96%8.48% L I C HOUSING FINANCE LTD. 2013 2.13%

5.9% H D F C BANK LTD. 2014 1.62%8.95% POWER FINANCE CORPN. LTD. 2015 1.35%7.6% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2017 1.33%10.05% MARICO LTD. 2013 1.27%9.4% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 2014 1.27%8.5% IDFC LTD 2012 1.26%9.05% STATE BANK OF INDIA 2020 1.25%8.2% ASHOK LEYLAND LTD. 2015 0.93%OTHER CORPORATE DEBT 4.95%

EQUITY 48.33%

RELIANCE INDUSTRIES LTD. 3.35%

Rating Profile

Growth Fund ULGF00112/06/01BSLGGROWTH109

Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To achieve optimum balance between growth and stability to provide long-term capital appreciation with balanced level of risk by investing in fixed incomesecurities and high quality equity security.

Strategy: To ensure capital appreciation by simultaneously investing into fixed incomesecurities and maintaining diversified equity portfolio. Active fund management iscarried out to enhnce policyholder’s wealth in long run.

AA+1.71%

AA-3.26%

AA4.10%

P1+/A1+13.84%

AAA40.32%

G-Secs15.88%

MMI14.46%

NCD21.33%

Equities48.33%

RELIANCE INDUSTRIES LTD. 3.35%I T C LTD. 3.20%I C I C I BANK LTD. 3.01%INFOSYS LTD. 2.45%

HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2.36%H D F C BANK LTD. 2.16%LARSEN AND TOUBRO LTD. 2.12%STATE BANK OF INDIA 1.55%TATA CONSULTANCY SERVICES LTD. 1.42%

OIL AND NATURAL GAS CORPN. LTD. 1.32%OTHER EQUITY 25.40%

MMI 14.46%

Maturity Profile

Sectoral Allocation

1.03%

1.70%

2.10%

2.22%

2.65%

2.80%

3.19%

5.16%

7.11%

8.25%

9.23%

10.61%

11.63%

12.80%

19.53%

CEMENT

TELECOM

DIVERSIFIED

AUTO ANCILLIARY

OTHERS

POWER

PHARMA

AUTOMOBILE

CAPITAL GOODS

METAL

FINANCIAL SERVICES

SOFTWARE / IT

OIL AND GAS

FMCG

BANKING

46.72%

13.86%

39.41%

Less than 2 years 2 to 7years 7years & above

Sovereign36.78%

Aug-0

4

Dec-0

4

Apr-05

Aug-0

5

Dec-0

5

Apr-06

Aug-0

6

Dec-0

6

Apr-07

Aug-0

7

Dec-0

7

Apr-08

Aug-0

8

Dec-0

8

Apr-09

Aug-0

9

Dec-0

9

Apr-10

Aug-1

0

Dec-1

0

Apr-11

Aug-1

1

Dec-1

1

Apr-12

Aug-1

2

Gr. Growth BM

SECURITIES HOLDING

GOVERNMENT SECURITIES 13.65%

7.8% GOVERNMENT OF INDIA 2021 3.31%8.97% GOVERNMENT OF INDIA 2030 2.73%8.2% GOVERNMENT OF INDIA 2022 1.41%8.15% GOVERNMENT OF INDIA 2022 1.31%

7.49% GOVERNMENT OF INDIA 2017 1.28%

8.3% GOVERNMENT OF INDIA 2040 1.28%8.79% GOVERNMENT OF INDIA 2021 0.54%

7.59% GOVERNMENT OF INDIA 2016 0.52%

8.08% GOVERNMENT OF INDIA 2022 0.52%7.46% GOVERNMENT OF INDIA 2017 0.51%OTHER GOVERNMENT SECURITIES 0.26%

CORPORATE DEBT 15.53%

11.5% RURAL ELECTRIFICATION CORPN. LTD. 2013 3.24%10.9% RURAL ELECTRIFICATION CORPN. LTD. 2013 2.68%

6.1% NUCLEAR POWER CORPN. OF INDIA LTD. 2014 2.52%

9.47% POWER GRID CORPN. OF INDIA LTD. 2013 1.98%

2% INDIAN HOTELS CO. LTD. 2014 1.28%7.75% RURAL ELECTRIFICATION CORPN. LTD. 2012 1.05%8.7% POWER FINANCE CORPN. LTD. 2020 1.02%8.8% POWER GRID CORPN. OF INDIA LTD. 2019 0.64%11.95% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 20180.59%10.48% ULTRATECH CEMENT LTD. 2013 0.53%

Rating Profile

Growth Advantage Fund ULGF01026/11/07BSLIGGRADV109Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To provide blend of fixed return by investing in debt & moneymarket instruments and capital appreciation by predominantly investing inequities of fundamentally strong and large blue chip companies.Strategy: To build and actively manage a well-diversified equity portfolio ofvalue & growth driven stocks by following a research-focused investmentapproach. While appreciating the high risk associated with equities, the fundwould attempt to maximize the risk-return pay-off for the long-term advantageof the policyholders. The non-equity portion of the fund will be invested inhigh rated debt and money market instruments and fixed deposits.

P1+/A1+2.24% AA+

MMI12.72%

G-Secs13.65%

NCD15.53%

Equities58.09%

0.53%

EQUITY 58.09%

RELIANCE INDUSTRIES LTD. 4.03%I T C LTD. 3.97%I C I C I BANK LTD. 3.65%

INFOSYS LTD. 3.00%

HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2.87%H D F C BANK LTD. 2.62%LARSEN AND TOUBRO LTD. 2.55%STATE BANK OF INDIA 1.90%TATA CONSULTANCY SERVICES LTD. 1.74%OIL AND NATURAL GAS CORPN. LTD. 1.62%OTHER EQUITY 30.15%

MMI 12.72%

Maturity Profile

Sectoral Allocation

58.45%

10.72%

30.83%

Less than 2 years 2 to 7years 7years & above

2.24% AA+4.27%

Sovereign45.73%

AAA47.75%

1.70%

2.13%

2.25%

2.74%

2.82%

3.43%

5.21%

7.25%

8.43%

9.37%

10.53%

11.72%

12.77%

19.65%

TELECOMMUNICATION

DIVERSIFIED

AUTO ANCILLIARY

PHARMACEUTICALS

POWER GENERATION AND SUPPLY

OTHERS

AUTOMOBILE

CAPITAL GOODS

METAL

FINANCIAL SERVICES

SOFTWARE / IT

OIL AND GAS

FMCG

BANKING

Aug-0

8

Oct-08

Dec-0

8

Feb-0

9

Apr-09

Jun-0

9

Aug-0

9

Oct-09

Dec-0

9

Feb-1

0

Apr-10

Jun-1

0

Aug-1

0

Oct-10

Dec-1

0

Feb-1

1

Apr-11

Jun-1

1

Aug-1

1

Oct-11

Dec-1

1

Feb-1

2

Apr-12

Jun-1

2

Aug-1

2

Gr. Advantage BM

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 0.00%

EQUITY 0.00%

MMI 100.00%

ORIENTAL BANK OF COMMERCE CD (MD 20/03/2013) 10.01%10.51% BANK OF BARODA FD QUARTERLY COMP (MD 29/03/2013)8.91%AFCONS INFRASTRUCTURE LTD. CP (MD 09/11/2012) 8.73%INDIAN OVERSEAS BANK CD ( MD 21/03/2013) 6.62%VIJAYA BANK CD ( MD 15/03/2013) 6.53%INFRASTRUCTURE DEVELOPMENT FINANCE CO. LTD. CP (MD 13/02/2013)6.25%10.90 PUNJAB AND NATIONAL BANK FD QTR (MD 20/03/13) 5.94%10.40% CORPORATION BANK FD QTR COMP (MD 02/03/2013) 5.94%

10.50% STATE BANK OF HYDERABAD FD QUARTERLY COMP (MD 29/03/2013)5.94%10.90% CANARA BANK FD QUARTERLY COMP (MD 14/03/2013) 5.94%Others 29.21%

Rating Profile

Money Market Fund ULGF00824/08/04BSLIGRMMKT109

Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To provide reasonable returns, at a high level of safety andliquidity for capital conservation for the Policyholder

Strategy: To make judicious investments in high quality debt and moneymarket instruments to protect capital of the Policyholder with very low levelof risk

MMI100.00%

MM BM

Maturity Profile

100.00%

Less than 1 year

P1+/A1+100.00%

Aug

-08

Oct-

08

Dec

-08

Feb

-09

Apr-

09

Jun-0

9

Aug

-09

Oct-

09

Dec

-09

Feb

-10

Apr-

10

Jun-1

0

Aug

-10

Oct-

10

Dec

-10

Feb

-11

Apr-

11

Jun-1

1

Aug

-11

Oct-

11

Dec

-11

Feb

-12

Apr-

12

Jun-1

2

Aug

-12

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 45.25%

9.65% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20144.24%

9.62% L I C HOUSING FINANCE LTD. 2015 3.87%8.5% IDFC LTD 2012 3.82%8% MAHINDRA VEHICLE MANUFACTURERS LIMITED 2015 3.77%

10.6499% CHOLAMANDALAM INVESTMENT AND FINANCE CO. LTD. 20133.63%

9.63% POWER FINANCE CORPN. LTD. 2014 3.44%9.72% IDFC LTD 2013 3.44%9.62% L I C HOUSING FINANCE LTD. 2015 3.03%

9.7% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2015 2.76%

8.78% MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD. 20122.73%OTHER CORPORATE DEBT 10.51%

SECURITISED DEBT 0.00%

MMI 54.75%

Asset Allocation

Rating Profile

Short Term Debt Fund ULGF01322/09/08BSLGSHTDBT109

Portfolio as on 31st August 2012 About the FundObjective: 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 incomeinstruments with short term duration. The fund will invest in governmentsecurities, high rated corporate bonds, good quality money market instrumentsand other fixed income securities. The quality & duration of the assetspurchased would aim to minimize the credit risk and liquidity risk of theportfolio. The fund will maintain reasonable level of liquidity.

AA+8.18%

AA

MMI54.75%

NCD45.25%

Short Term Debt BM

Maturity Profile

74.37%

23.45%

2.18%

Less than 2 years 2 to 7years 7years & above

8.18%AA

11.12%

AAA38.02%

P1+/A1+42.68%

Aug-0

9

Oct-

09

Dec-0

9

Feb-1

0

Apr-

10

Jun-1

0

Aug-1

0

Oct-

10

Dec-1

0

Feb-1

1

Apr-

11

Jun-1

1

Aug-1

1

Oct-

11

Dec-1

1

Feb-1

2

Apr-

12

Jun-1

2

Aug-1

2

SECURITIES HOLDING

GOVERNMENT SECURITIES 31.78%

8.08% GOVERNMENT OF INDIA 2022 12.47%8.2% GOVERNMENT OF INDIA 2022 10.83%

8.79% GOVERNMENT OF INDIA 2021 8.48%

CORPORATE DEBT 43.36%

10.6% INDIAN RAILWAY FINANCE CORPN. LTD. 2018 9.03%

10.1% HDB FINANCIAL SERVICES LTD 2017 8.70%

9.9% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2018 8.68%10.48% ULTRATECH CEMENT LTD. 2013 8.55%7.75% RURAL ELECTRIFICATION CORPN. LTD. 2012 8.40%

SECURITISED DEBT 0.00%

MMI 24.85%

Asset Allocation

Rating Profile

Income Advantage Fund ULGF01425/02/10BSLGINCADV109

Portfolio as on 31st August 2012 About the FundObjective: To provide capital preservation and regular income, at a high levelof safety over a medium term horizon by investing in high quality debtinstruments

Strategy: To actively manage the fund by building a portfolio of fixed incomeinstruments with medium term duration. The fund will invest in governmentsecurities, high rated corporate bonds, high quality money market instrumentsand other fixed income securities. The quality of the assets purchased wouldaim to minimize the credit risk and liquidity risk of the portfolio. The fund willmaintain reasonable level of liquidity.

P1+/A1+13.99%

MMI24.85%

G-Secs31.78%

NCD43.36%

Gr. Inc Adv BM

Maturity Profile

40.20%

27.14%32.66%

Less than 2 years 2 to 7years 7years & above

13.99%

Sovereign36.38%

AAA49.63%

Jun-1

0

Aug-1

0

Oct-

10

Dec-1

0

Feb-1

1

Apr-

11

Jun-1

1

Aug-1

1

Oct-

11

Dec-1

1

Feb-1

2

Apr-

12

Jun-1

2

Aug-1

2

SECURITIES HOLDING

GOVERNMENT SECURITIES 96.58%

8.97% GOVERNMENT OF INDIA 2030 13.28%5.64% GOVERNMENT OF INDIA 2019 13.16%8.79% GOVERNMENT OF INDIA 2021 13.15%8.35% GOVERNMENT OF INDIA 2022 12.73%7.46% GOVERNMENT OF INDIA 2017 12.35%8.15% GOVERNMENT OF INDIA 2022 9.56%9.15% GOVERNMENT OF INDIA 2024 6.77%8.2% GOVERNMENT OF INDIA 2022 6.39%8.28% GOVERNMENT OF INDIA 2027 6.31%7.61% GOVERNMENT OF INDIA 2015 2.53%OTHER GOVERNMENT SECURITIES 0.36%

CORPORATE DEBT 0.00%

EQUITY 0.00%

MMI 3.42% Rating Profile

Gilt Fund ULGF00630/05/03BSLIGRGILT109Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To deliver safe and consistent returns over a long-term period byinvesting in Government Securities.

Strategy: Active fund management at very low level of risk by having entireexposure to government securities & money market instruments, maintainingmedium term duration of the portfolio to achieve capital conservation.

MMI3.42%

G-Secs96.58%

Maturity Profile

1.63%

28.80%

69.57%

Less than 2 years 2 to 7years 7years & above

Sovereign100.00%

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 60.83%

2% TATA STEEL LTD. 2022 4.87%9.8% L I C HOUSING FINANCE LTD. 2014 3.42%

9.35% RURAL ELECTRIFICATION CORPN. LTD. 2022 3.35%8.73% POWER GRID CORPN. OF INDIA LTD. 2015 2.99%9.75% TATA MOTORS LTD. 2020 2.84%9.45% L I C HOUSING FINANCE LTD. 2022 2.45%9.5% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2017 2.44%12.65% CHOLAMANDALAM INVESTMENT AND FINANCE CO. LTD. 20142.43%11.3% A C C LTD. 2013 2.35%10.48% ULTRATECH CEMENT LTD. 2013 2.33%OTHER CORPORATE DEBT 31.35%

SECURITISED DEBT 0.00%

EQUITY 0.00%

MMI 39.17%

Rating Profile

Bond Fund ULGF00530/05/03BSLIGRBOND109

Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To achieve capital preservation along with stable returns byinvesting in corporate bonds over medium-term period.

Strategy: To invest in high credit rated corporate bonds, maintaining ashort-term duration of the portfolio at a medium level of risk to achievecapital conservation.

MMI39.17%

NCD60.83%

MMI 39.17%

Maturity Profile

45.50%

29.74%24.76%

Less than 2 years 2 to 7years 7years & above

AA3.54%

AA-7.58%

AA+8.77%

P1+/A1+12.47%

AAA67.64%

SECURITIES HOLDING

GOVERNMENT SECURITIES 28.93%

9.15% GOVERNMENT OF INDIA 2024 10.24%8.15% GOVERNMENT OF INDIA 2022 3.13%8.08% GOVERNMENT OF INDIA 2022 2.16%7.8% GOVERNMENT OF INDIA 2021 1.90%

7.8% GOVERNMENT OF INDIA 2020 1.70%

8.2% GOVERNMENT OF INDIA 2022 1.50%

8.79% GOVERNMENT OF INDIA 2021 1.49%7.99% GOVERNMENT OF INDIA 2017 1.30%8.13% GOVERNMENT OF INDIA 2022 1.13%8.2% GOVERNMENT OF INDIA 2023 1.06%OTHER GOVERNMENT SECURITIES 3.32%

CORPORATE DEBT 31.18%

NATIONAL HOUSING BANK 2018 5.66%8.84% POWER GRID CORPN. OF INDIA LTD. 2019 4.75%

9.25% POWER GRID CORPN. OF INDIA LTD. 2020 2.42%9.61% POWER FINANCE CORPN. LTD. 2021 1.83%

2% TATA STEEL LTD. 2022 1.74%

10.1% HDB FINANCIAL SERVICES LTD 2017 1.50%

9.7% TATA SONS LTD. 2022 1.50%

8.84% POWER GRID CORPN. OF INDIA LTD. 2016 1.31%9.9% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2021 1.26%9.5% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2022 0.99%OTHER CORPORATE DEBT 8.23%

Rating Profile

Fixed Interest Fund ULGF00416/07/02BSLGFIXINT109

Portfolio as on 31st August 2012

Asset Allocation

About the FundObjective: To achieve value creation at low risk over a long-term horizon byinvesting into high quality fixed interest securities.

Strategy: To actively manage the fund at a medium level of risk by havingentire exposure to government securities, corporate bonds maintainingmedium to long-term duration of the portfolio to achieve capital conservation.

G-Secs28.93%

MMI39.89%

NCD31.18%

OTHER CORPORATE DEBT 8.23%

EQUITY 0.00%

MMI 39.89%

Maturity Profile

39.11%

16.01%

44.89%

Less than 2 years 2 to 7years 7years & above

AA0.93%

AA+5.03%

P1+/A1+12.03%

AAA39.67%

Sovereign42.34%

Aug-0

4

Dec-0

4

Apr-

05

Aug-0

5

Dec-0

5

Apr-

06

Aug-0

6

Dec-0

6

Apr-

07

Aug-0

7

Dec-0

7

Apr-

08

Aug-0

8

Dec-0

8

Apr-

09

Aug-0

9

Dec-0

9

Apr-

10

Aug-1

0

Dec-1

0

Apr-

11

Aug-1

1

Dec-1

1

Apr-

12

Aug-1

2

FIF BM