TheAnalystMar2011ULIP

the analyst monthly fund factsheet und snapshot investment philosophy Reliance Life Insurance seeks consistent and superior long-term returns with a well-defined and disciplined investment approach symbolizing integrity and transparency to benefit all stakeholders. Indian Economy 3Q FY11 Real GDP grew at 8.2% yoy, slower than 8.9% in the first half of the year. GDP by sector showed that growth was driven by stellar performance of Agriculture that grew at 8.9% yoy. Growth in Services remained strong but Industry moderated as seen in IIP data. Govt. budgeted an estimate of 9% growth in FY12. It also announced for Rs.3.43trln net borrowing in the F.Y. 2011 -12. The Fiscal deficit target is capped at 4.6%(2011-12) Vs 5.1%(F.Y.2010-11). Rally in crude oil due to global uncertainties in last month have raised inflationary concerns in developing countries. Industrial production growth continued to remain subdued and slowed to 1.6% yoy in Dec’10 from 2.7% in Nov’10. Credit growth contin- ues to be robust at 23.9% by mid-Feb’11. The inflation (WPI), after moderating from the peak of 11% in April’10 to 7.5% in Nov’10, softened in Jan’11 to 8.23% Debt Market In absence of any fresh supply and ahead of Budget market remained subdued till the month end. However 10yr g-sec benchmark yield dropped to 8.02% from 8.14% levels in previous month on expectation of lower borrowing numbers to be announced in budget. Corporate bonds yields specially in 3 to 5yr segment inched up due to fresh primary issuances. Debt Outlook: In the Coming month, we expect interest rates to remain range bonded. We expect liquidity to ease gradually on account of government spending. RBI is expected to hike rates in its next mid term policy meeting. Key economic data-points like borrowing calendar, monthly inflation numbers, IIP numbers, credit numbers, overall liquidity in system are likely to dominate the yield curve and RBI’s action. Equity Market Equity markets in the month of February were negative with the benchmark BSE Sensex down by 2.75% primarily due to rising oil prices due to crisis in Libya and other Middle East countries, governance concerns and FII Outflows. India's annual industrial output in December rose 1.6%, at its slowest pace in 20 months on account of higher base last year and stretched capacities at factories. India's exports in December rose an annual 36.4 percent to $22.5 billion, while imports for the month fell 11.1 percent on the year to $25.1 billion. Trade deficit in December narrowed to US $2.6 billion compared with US $8.9 billion in November. The April-December exports rose an annual 29.5 percent to US $164.7 billion. Crude Oil prices continued their upward trend due to political crisis in Libya and other Arab countries. With India importing close to 80% of its crude oil requirement, rising oil prices lead to higher oil subsidies impacting the fiscal deficit situation of the government. Union Budget 2011-12 held a lot of expectations in terms of tax and subsidy reforms. The Finance Minister presented a balanced budget trying to match expectation in terms of reforms and providing less for food, fertilizer and oil subsidies. The fiscal deficit target of 4.6% for FY 2011-12 appears optimistic in face of rising crude oil prices Equity Outlook: With the results season and Union Budget out of the way, there is not much in terms of domestic news flow expected in March 2011. The key factors to watch out for would continue to be the crude oil prices and FII Outflows. March 2011 Download Your Unit Statement Instantly. Log on to with your Client ID and Password www.reliancelife.com *CAGR: Compounded Annual Growth Rate asset allocation gross return (CAGR*) (%) As on Feb 28, 2011 funds 100% equity Equity Fund 10.83% 38.61% 1.30% 18.53% August, 2004 100% pure equity Pure Equity Fund 6.53% 37.07% NA 10.69% June, 2008 100% equity Infrastructure Fund -7.38% 14.22% NA -7.68% March, 2008 100% equity Energy Fund 2.40% 21.72% NA 0.91% March, 2008 100% equity Midcap Fund -2.36% 37.46% NA 0.31% March, 2008 80% equity, 20% debt Super Growth Fund 8.79% 29.55% 1.47% 5.27% May, 2007 60% equity, 40% debt High Growth Fund 8.54% 23.87% 3.79% 8.90% March, 2007 50% equity, 50% debt Growth Plus Fund 8.48% 21.32% 4.91% 8.89% March, 2007 40% equity, 60% debt Growth Fund 6.90% 17.61% 5.17% 11.65% August, 2004 20% equity, 80% debt Balanced Fund 6.58% 12.23% 6.92% 10.37% February, 2003 100% bond instruments Corporate Bond Fund 7.12% 8.10% 9.18% 9.55% May, 2007 100% debt Instruments Pure Debt Fund 6.93% 8.06% 8.80% 8.90% April, 2007 100% govt. securities Gilt Fund 7.28% 5.68% 6.01% 6.31% May, 2007 100% debt Instruments Guaranteed Bond Fund I 7.07% 8.90% NA 11.59% December, 2008 100% money market instruments Money Market Fund 7.66% 8.08% 8.88% 8.91% May, 2007 100% money market instruments Capital Secure Fund 7.27% 7.56% 8.31% 7.07% February, 2003 100% equity Equity Plus Fund 6.78% NA NA 2.93% January, 2010 100% dynamic Highest Nav Guarantee Fund 7.33% NA NA 7.63% February, 2010 date of inception last 1 year last 2 year last 3 year since inception 100% dynamic Highest NAV Advantage Fund- Series I NA NA NA NA September, 2010 Source: 1 Bloomberg, 2 eaindustry.nic.in, 3 RBI and 4 SEBI Economy Indicators 28th Feb 11 31st Jan 11 % Change 1 Rs./$ 45.27 45.91 1.40 2 WPI Inflation Index 145.90 1.23 3 Forex Reserves ($ bn) 300.79 299.17 0.54 1 Oil Price ($ per Barrel) 96.97 91.93 5.20 1 Gold (Rs. per 10gm) 20546 19673 4.25 Investments 28th Feb 11 31st Jan 11 Absolute Change 4 FIIs (Rs Crs) -4,586 -4,813 227.70 4 Mfs (Rs Crs) 1,427 591 836.30 Indices 28th Feb 11 31st Jan 11 % Change 1 BSE Sensex 17823 18328 -2.75 1 S&P CNX Nifty 5333 5506 -3.14 1 CNX Mid Cap 7370 7923 -6.97 1 BSE Small Cap 7817 8478 -7.79 Global Indices 28th Feb 11 31st Jan 11 % Change 1 Dow Jones 12226 11892 2.81 1 FTSE 100 5994 5863 2.24 1 Hang Seng 23338 23447 -0.47 1 Nikkei 10624 10238 3.77 Sectoral Indices 28th Feb 11 31st Jan 11 % Change 1 CNX Infrastructure 2811 3043 -7.63 1 CNX Energy 8680 8788 -1.23 1 BSE Capital Goods 12400 13526 -8.33 1 BSE Bankex 11840 12064 -1.85 1 BSE Oil & Gas 9459 9482 -0.24 1 BSE IT 6107 6371 -4.15 Fixed Income Indicators (%) 28th Feb 11 31st Jan 11 Absolute Change 1 NSE Mibor 7.00 7.00 0.00 1 91 Day T-Bill 7.10 7.20 -0.10 1 182 Day T-Bill 7.45 7.50 -0.05 1 1 year GOI Benchmark 7.52 7.59 -0.07 1 5 Year GOI Benchmark 8.08 7.98 0.10 1 10 Year GOI Benchmark 8.02 8.14 -0.13 1 5 Year Corp Bond Benchmark 9.32 9.24 0.08 1 10 Year AAA Corp Bond Benchmark 9.19 9.20 -0.01 1 10 Year US Benchmark 3.43 3.37 0.06 # Forex Reserves updated as on 25th Feb 2011

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TheAnalystMar2011ULIP