Return Guarantee Fund

Agenda

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2

Pres entation Structure

: Return Guarantee Fund Our New Offering

: RGF Benefits &Advantages

: Fund Launch Proces s &FAQs

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Cus tomer Journey

Fear is s till the dominant emotion

today

& Guarantee is a s trong

des ire

Des peration

Relief

Optimism

Des pondency

Wow ! I feel great about this investment

Maybe the markets are not for me

Temporary SetbackI am a long term

investor

Optimism

Euphoria

Thrill

Exc itement

Depres s ion

Fear

Denial

Anxie ty

Panic

Capitulation

Hope

2007 2008

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5

ICICIPrudential pres ents

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Competition

• : 6%-7%LIC Jeevan As tha• : 7% ( )AVIVA Bond Clos ed• : Bajaj Capital Shie ld Premium Guarantee

• : 7.2%Religare Aegon

All are Single Premium offerings launched in the

.market in the recent pas t

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?What is the Return Guarantee Fund

( ) Return Guarantee Fund RGF is a c los e ended debt fund

It offers a Minimum Guaranteed NAV at the 5 .end of years

100100Debt, Money market & Cash

(%)Min (%)Max Indicative Portfo lio Allocation

: 1.50%Fund Management Charge

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Reas ons for launch

Excellent cus tomer res pons e to LifeStage As s ure

/ Cus tomer Sales feedback to extend this philos ophy to other products

Provide the flavor of guarantee to our exis ting products through the introduction of a fund

Great opportunity in Debt in the current markets cenario

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Opportunity in Debt

Interes t rates have reached a high las t s een in2001-2002

RBI is cutting interes t rates to kick s tart growth by , encouraging lending es pec ially to bus ines s es

, When interes t rates fall bond prices ris e which helps .you to get better returns in debt ins truments

Example : Bond A gives 7% returns. Its price is 100. Tomorrow, if interest rate falls to 6%, all new bonds give 6% except A which

continues to give 7%. So Bond A becomes more valuable and hence its price will go up

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: Advantage Debt funds

With decrease in interest rates, bond price is set to increase

5 - 7% 6%, If interes t rates on year G Secs fall from to . 100 . 104.15 bond price apprec iates from Rs to Rs

Interes

tRate

7%

6%

. 104.15 Rs

. 100 Rs

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Opportunity in Debt

4.50

5.50

6.50

7.50

8.50

9.50

10.50

-01Jan -02Jan -03Jan -04Jan -05Jan -06Jan -07Jan -08Jan

10

ye

arGSec

Yield

?

Debt funds gave high returns

Debt could be expected to perform better this year

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Get the all round advantage

RGF Life &

Pens ionvariants

Ups idePotential

Guaranteed NAV

Flexibility

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15 Get a Minimum Guaranteed NAV of on 20, 2013December

.10Rs

Rs.15

Guaranteed NAV at Maturity

5 yrs

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Snaps hot of RGF

10

15

2008 2009 2010 2011 2012 2013

Subscription starts on Dec

20, 2008

Subscription ends after 1

month

Fund terminates on Dec 20, 2013

Minimum Guaranteed NAV of 15

: 5 Term years Clos ed Ended Fund

: 1.50%FMC

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Ups ide Potential

20, 2013 On Dec you get Min Guaranteed NAV of 15 ; Rs or the NAV on that day whichever is

higher

The falling interes t rate regime is expected to - boos t the returns given by debt funds as s een in

the pas t

GET THE ADVANTAGE OF HIGHER RETURNS WITH THE PROMISE OF A MINIMUMGUARANTEE

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Flexibility

:LIQUIDITY

:SWITCH

* Guarantee will not be applicable in s uch cas es

Partial Withdrawal and Surrender allowed at *any point of time at the prevailing NAV

Switch out of Return Guarantee fund at

the prevailing NAV at any point of time and

- re inves t in any of our other funds

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…Available with

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– RGF Features

5 RGF is a c los e ended fund of years term

.10 20, 2008It will open with an NAV of Rs on Dec

Subs cription to this fund is open for a limited period

5 The fund can be clos ed by giving a notice of working days notice

( ) 20, 2013The fund will terminate mature on Dec

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- RGF Features

: New Cus tomers , If RGF is chos en the firs t premium depos it

( ) cheque amount net of charges will be inves ted entire ly in this fund

Subs equent premiums will be allocated in our ’ other funds as per cus tomer s fund allocation

choice

: Exis ting cus tomers Can switch the ir funds into RGF during this period

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Subs equent Premiums

Only your Firs t Premium Depos it is inves ted in theRGF

:Subs equent Premiums ( ); Allocation mus t be chos en at inception in app form

/ and can be allocated into any of the fund s trategy available with the product

- Active Cus tomer Automatic Trans fer Strategy

- Pas s ive Cus tomer Life Cycle Bas ed Portfo lioStrategy

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( )Automatic Trans fer Strategy ATS

ATS allows you to inves t a lump s um amount in Pres erver

- and trans fer a pre defined amount every month into any

( , . . . ., one of the chos en equity funds Multiplier R IC H Flexi

)Growth

Automatic Trans fer Strategy is modification of Automatic

( )Trans fer Plan ATP

Cus tomer can opt for ATS in the APPLICATION FORM , If opted cus tomer needs to allocate funds in Pres erver 40% The cap on Pres erver has been removed

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( )Automatic Trans fer Strategy ATS

?Has ATS replaced ATP

NO 4 Currently ATS can be opted for only in thes e products ATP s ervice reques t forms will continue to be available

for all other ULIPs The s ource fund in ATP has als o been replaced with

.Pres erver

?Why has Protec tor been replaced with Pres erver Pres erver being a money market fund is more s table and

.le s s volatile than Protector 40% .IRDA has removed the cap on Pres erver

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LifeCyc le Bas ed Portfo lio Strategy

’ Initial allocation bas ed on cus tomer s age

Rebalanc ing on a quarterly bas is

, As age progres s es allocation changed to s uit change in Lifes tage

10 In the las t quarters corpus s hifted from equity to debt to ens ure capital pres ervation

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- RGF For the volatile times

1 :If equity market s tabilizes after year

Subs equent premiums can be inves ted in equity funds via the ATS route

, The funds in RGF will provide divers ity to your portfo lio mitigating inves tment ris k

/ 1 If equity markets remain volatile s luggis h after:year

We will launch more s eries of RGF , If not s ubs equent premiums can be inves ted in debt

funds Guarantee in a debt fund will be the ic ing on the cake

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What happens on termination date of?RGF

: 5 Termination Date This is the date years from the launch of. , 20 2013RGF For this tranche it is Dec

, On that date the cus tomer will ge t higher of Guaranteed NAV( .15) Rs or exis ting NAV

( ) This RGF terminal value maturity value will be allocated as per exis ting fund allocation in other funds &policy will

.continue till end of policy term

: 20 2013, : 1 ,Example On Dec the cus tomer has his funds in RGF lac: 3 , : 1 . RICH lac Balancer lac Since RGF terminates and is allocated as per

exis ting , 1 75 25 fund allocation this lac is divided into K into RICH and K into Balancer

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!!! Hurry Offer open only for Subs cription period

.10Rs

Limited Period Offer

5 yrs

. 15Rs

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Words of wis dom

Warren Buffett

5 Inves ted $ billion in Goldman Sachs 3 Inves ting $ billion in General Electric

- Ne w York Time s 23rd S e pt ’08

You know, five years from now, ten years from now, we'll look back on this period and we'll see that you could have made some extraordinary (stock market) buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months

from now. I do know that the economy, over a period of time, will do very well, and people who own a piece of it will do well.

- Warren Buffet

, He really meant it when he s aid s o

See what he did

, Therefore it might be one of the bes t time to make an inves tment

Business

Return Guarantee Fund