l Exide Life Insurance Investment Philosophy

l Market Highlights

l Outlook for Markets

l Fund Performance over a 5-year period

l Risk Return Profile of Funds

l Glossary

l Exide Life Insurance Fact Sheet

January’20

MarketHighlights

Prior to joining Exide Life Insurance, Shyam has worked with two

mutual fund companies - initially as a part of the start-up team in 1994

at Tata Asset Management Ltd. for 10 years (1994-2004), followed by

Principal PNB Asset Management, where he then worked for more than

6 years (2004-2010).

Shyamsunder Bhat, Chief Investment Officer (CIO) has an experience of over 25 years in fund management.

He joined Exide Life Insurance in September 2010.

Shyam is an Electrical Engineer from VJTI (Mumbai) and a post-graduate in

Management (M.M.S. Finance) from Narsee Monjee Institute of Management

Studies (Mumbai).

Monthly Report 02

Exide Life Insurance Investment PhilosophyOur policyholders are investing their hard earned money with specific objectives of protection and longer-term

investment returns. Two of the basic expectations of our customers are thus, Safety and Returns, and we need to

balance both these expectations in terms of the asset-allocation, underlying investments, and subsequent

monitoring. These customer expectations are an important consideration in our investment management philosophy

and strategy.

The underlying investment philosophy is to ensure safety and deliver consistent, stable returns over the longer-term,

for a given level of risk. This is achieved with a well-defined and disciplined investment process. There is an

emphasis on compliance and robust risk-management in the investment process, both pre-investment and post-

investment. As a company and as an investment team, we focus on the long-term.

Investment Team Profile

SHOBIT GUPTA

Senior Vice President (Investments) - Fixed Income

SHYAMSUNDER BHATChief Investment Officer(CIO)

Pranav Parekh Sumeet Hinduja

Fund Manager - Fixed Income portfolio Fund Manager - Equity portfolio

Shobit Gupta, Senior Vice President (Investments), Fixed Income, has almost 22 years of experience in Fixed

Income and Foreign Exchange markets. He has worked extensively in the field of Foreign exchange and

Interest Rate derivatives at ABN AMRO Bank and has handled Fixed Income

portfolios at Asset Management companies like Kotak Mahindra Mutual Fund

and Principal Asset Management Co. He is a Graduate in Economics, Maths,

Statistics, PGDBA from ICFAI Delhi and CFA from ICFAI Hyderabad and CFA

Institute - USA.

Bond prices fell in January, with the 10-year G-Sec yield rising slightly by 4 bps to 6.60% for the month, though US yields

and crude prices fell. The fall in Indian bond prices was largely due to the spike in consumer inflation figures to 7.35% and

the possibility of additional Government borrowing this year. Foreign investors were sellers in the debt market to the tune of

`11000 cr. Corporate bond spreads were stable in the 87-88 bps range.

In India, we had earnings disappointments in some of the Nifty-50 heavyweights along with the elevated valuations, which led to

a 1.7% fall in the Nifty-50. However we saw a rally in the broad market, with a 5.3% rise in the Nifty Midcap 100 index, and it is

heartening to see a reduction in the extreme polarization towards some select large-caps that we have been witnessing over the

past couple of years.

The status-quo on long-term capital gains tax on equities is indeed a disappointment, as a relaxation in the same would have

helped boost sentiment and the disinvestment process, without significantly impacting the revenues or fiscal deficit.

Government estimates have pegged GDP growth at 5.0% yoy for the current financial year, well below even the 6.1% yoy

witnessed in the previous year.

Global equity markets had a volatile start to calendar 2020, with several developments such as geopolitical issues in the Middle-

East, phase-1 of the US-China trade deal and the reports relating to the Coronavirus in China.

The Budget has pegged the fiscal deficit to GDP ratio at 3.5% for FY2020-21, from an upwardly revised 3.8% for the current year;

both these figures are on expected lines. However gross borrowing for the current year has been surprisingly left unchanged at

`7.1 lakh crore, with a projected figure of Rs 7.8 lakh crore of gross market borrowing for FY2020-21.

Equity market:

Foreign institutions were larger net buyers to the tune of $1.4bn in January, while domestic institutions were small buyers. As we

enter February, there are international concerns on the possibility of the Coronavirus spreading to other countries.

However, there has been no substantial incremental outlay for infrastructure spending beyond the pipeline announced earlier, and

is therefore a disappointment, though the tax exemption announced for Sovereign Wealth Funds for investments in Infrastructure

is a welcome step.

A growth in personal consumption by this means, therefore, may only be modest. The 3.5% fiscal deficit target for the next

financial year is after assuming disinvestment proceeds of a whopping `2.1 lakh crore, which would be very difficult to achieve

unless the privatisation of BPCL, Concor, IDBI Bank and the IPO of LIC are all completed in Fy20-21.

We are cautious in the near-term, and would look to add to the equity exposure either at lower levels, or depending upon the

trend in the above-mentioned factors.

Domestically, Consumer Price Inflation came in higher than expected, at 7.35% vs. 5.54% last month, driven primarily by a sharp

spike in food inflation and higher telecom tariffs, among others. Core inflation at 3.73% is still contained at below 4%.

Just as global markets were absorbing the signing of the Phase-1 of the US-China deal which could lead to a revival in growth, we

have seen a setback due to the impact of the Coronavirus in China.

The Union Budget for Fy20-21 was presented on February 1st, in the backdrop of a slowdown in economic growth and sluggish

revenue collections. A fiscal deficit deviation of 50 bps for the current year and for Fy20-21 has been indicated due to these

challenges.

Since the optional lower income tax slabs which have been announced are applicable only if assessees were to let go of a host of

deductions available under the existing regime, there is a possibility that only a small section of the taxpayers could shift to the

new regime (implying therefore effectively no reduction in personal income tax for most of the taxpayers).

The initial few days post the Budget have seen a sharp movement in both directions in the equity market, which is heading higher

after the initial losses. However, for sustenance of the higher levels, a recovery in the GDP growth, corporate earnings, as well as

an early containment of the Coronavirus, may be essential.

Fixed Income Market

Market Highlights

Monthly Report 03

Market Review

Monthly Report 04

The performance of the above funds, as well as of our other Funds, across various periods, is detailed separately on our website.

Consumer inflation could have peaked, or could be near to peaking. Crude oil prices have fallen, and fears of a further delay in the

recovery in global growth due to the Coronavirus, could lead to crude oil prices remaining at these lower levels.

Bond yields have further fallen in the US during January. Measures from RBI, such as the Operation Twist witnessed in the past

couple of months, could keep bond yields in India at lower levels. Corporate spread-compression would need to be watched going

forward, along with the progress in terms of timelines for Indian bonds to be a part of some of the global bond indices. The 10 year

G-Sec could trade towards the lower end of the 6.45% - 6.70% range in the near term.

Fund Performance over 3-year and 5-year periods:Over 1-year, 3-year, 5-year and 10-year periods, our Prime Equity Fund has delivered 11.09%, 9.24%, 5.61% and 8.50% on an

annualised basis, and our Preserver Fund has delivered 11.07%, 7.15%, 8.31% and 8.91% respectively. Our Active Asset

Allocation Fund has delivered 10.06%, 8.44% and 5.92% over 1-year, 3-year and 5-year periods. Our Midcap Fund has delivered

12.46% in the past year.

Market benchmarks over the past year:

Bond prices have risen (and yields have fallen) post the Budget, as the borrowing figure for the current year is lower than was

being feared.

Indices Month-End Level

1-Month Change

3-Month Change

1-Year Change

Nifty 50

BSE Sensex

MSCI Emerging Mkt

10 y AAA Yield*

Nifty Midcap-100

MSCI World

10 y Gov Yield *

40,723

1,062

7.58

11,962

18,010

6.60

2,342 -0.7%

-1.3%

-1.7%

5.3%

-4.7%

0.04

0.05

1.5%

0.7%

7.1%

0.15

4.9%

2.0%

0.01

6.5%

-0.68

12.3%

15.5%

1.2%

-0.87

10.4%

*As yields rise (fall), bond prices fall (rise); the longer the maturity of the bond, the larger is the change in price for a given change in interest rate.

*Available for existing customers only subject to product terms and conditions

#Please see disclaimer on page 6

High Risk

Low Risk

Medium Risk

Return

Ris

k

Exide Life Preserver Pension*

Exide Life Debt Pension Fund*

Exide Life Debt Fund*

Exide Life Liquid

Pension*

Exide LifeSecureFund

Exide LifeBalanceFund

Exide LifeGuaranteedNAV Fund

Exide LifeGrowthFund

The risk return chart below helps you choose the right fund for your investment needs.

Exide Life Insurance offers a wide range of fund options catering to various risk-return appetite. You can invest either in

equity, or in debt or in hybrid fund and even change your investment strategy. You can choose from these funds depending

on your risk appetite, age, time horizon for important life stage goals like child education planning, retirement planning, etc.

Monthly Report 05

Exide Life Active

AssetAllocation

Fund

Exide Life Prime Equity Fund

Exide Life Midcap Fund

Exide Life Equity Fund*

Exide Life Prime Equity Pension Fund*

Exide Life Capped Nifty #Index Fund

Exide Life Equity Pension Fund*

Exide LifePreserver Fund

Risk Return Profile of Funds

Monthly Report 06

Assets under management (AUM):

Corporate Debt:

Net Asset Value (NAV):

It refers to the contents of an investment portfolio held by an entity. The contents are the financial instruments like stocks, bonds, Government securities, mutual funds, fixed deposits, corporate deposits, etc. that constitute the fund.

A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations.

Nifty 50:

The market value of financial assets that an investment company manages on behalf of investors.

CRISIL Composite Bond Fund Index seeks to track the performance of a debt portfolio that includes Government securities and AAA/AA rated corporate bonds.

It is defined as the value of one unit of the fund. It is calculated by dividing the total value of all the securities held in the fund portfolio, less any liabilities, by the number of units in the fund. It is calculated once a day based on the closing market prices of the securities in the fund's portfolio.

Portfolio Holdings:

Government Securities (Gsec):

A debt security issued by a Government to raise the funds necessary to pay for its expenses. This includes short-term Treasury bills, medium-term Treasury notes, and long-term Treasury bonds.

Benchmark Index:

CRISIL Liquid Fund Index:

CRISIL Composite Bond Fund Index:

An index that is regarded as a standard and against which the performance of the fund is measured.

CRISIL Liquid Fund Index seeks to track the performance of a debt portfolio that includes CBLO, Commercial Papers and Certificates of Deposit.

The Nifty 50 is a well-diversified 50-stock index accounting for large-sized companies from 13 sectors of the economy.

2. The premiums paid in ULIP policies are subject to investment risks associated with capital markets and the Unit Price of the Units may go up or down based on performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.

3 . Exide Life Insurance Company Limited is only the name of the Insurance Company and Exide Life Insurance ULIP products are only the name of the ULIP contract and does not in any way indicate the quality of the contract its future prospects or returns.

1. ULIP plans are different from the traditional insurance products and are subject to risk factors.

4 . Be aware of the associated risks and the applicable charges from your insurance agent or the intermediary or policy document of the insurer.

5 . Investments in ULIPs are subject to market and other risks and there can be no assurance that the objectives of the Unit Linked Funds in the ULIP will be achieved.

6 . Past performance of the Unit Linked Fund and other Funds of the Company is not indicative of future performance of any of these Funds.

INDICES provided by CRISIL.“CRISIL Indices are the sole property of CRISIL. CRISIL Indices shall not be copied, transmitted or redistributed in any manner for any commercial use. CRISIL has taken due care and caution in computation of the Indices, based on the data obtained from sources, which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Indices and is not responsible for any errors or for the results obtained from the use of the Indices. CRISIL especially states that it has no financial liability whatsoever to the users of CRISIL Indices”.

7 . The premiums and funds are subject to certain charges related to the fund or to the premiums paid.

10. The purpose of the Fund Review is only to provide a general review about the funds available in the ULIP products. Please refer to the policy terms and conditions of respective products to understand in detail the associated risks, benefits, charges etc.

9. The ULIP does not offer a guaranteed return and risk in investment is borne by the policyholder.

8. The names of the Unit Linked Funds do not in any manner indicate the quality of the Unit Linked Fund or their future prospects or returns.

Glossary

Disclaimer:#“The “Exide Life Capped Nifty Index Fund” or its affiliates is not sponsored, endorsed, sold or promoted by NSE INDICES LTD and its affiliates. NSE INDICES LTD and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of “Exide Life Capped Nifty Index Fund” or any member of the public regarding the advisability of investing in securities generally or in the “Exide Life Capped Nifty Index Fund” linked to NIFTY 50 Index or particularly in the ability of the NIFTY 50 Index) to track general stock market performance in India.” Please read the full Disclaimers in relation to the NIFTY 50 Index in the website of Exide Life Insurance Company Limited.”

l Exide Life Insurance distributes its products through multi channels like Agency, Corporate Agents, Brokers, Bancassurance, Online and Direct Channel. Specialized Group Life Insurance Solutions

l 45,000+ Exide Life Insurance Advisors in over 200 cities

l Proud to be part of a 100 year old brand heritage in India

l An established and profitable life insurance company head quartered in Bengaluru

l Commenced operations in September 2001

l 100% owned by Exide Industries Limited

l Well capitalized and governed as per rules stipulated by the Insurance Regulatory and Development Authority of India (IRDAI)

18 years on. 18 years strong.

Key statistcis

Strong network

Fair value to our customersst(As on 31 March 2019)

l Assests Under Management (AUM) at `14,377 crores

l Solvency ratio 208%

l Total preminum income of `2,886 crores

lth 7 Successive year of profits

1Claims settled ratio is calculated as a percentage of total number of claims settled v/s total number of claims reported during the year 2018-19

1Claims settlement ratio

97.03%