FUNDS INSIGHT < Same Principal you ve always known. Now with an updated logo. is now

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1 FUNDS INSIGHT < September, 2018 Same Principal you ve always known. Now with an updated logo. is now Mutual Fund Mutual Fund Investments are subject to market risk, read all scheme related documents carefully. 1

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3 Index Details Equity Markets Round Up 2 Fixed Income Market Update 3 How to Read Factsheet 4 Product Suitability 5 NAV (Net Asset Value) 6 Principal Fixed Income Funds Snapshot 7 Principal Equity/Hybrid Funds Snapshot 8 Systematic Investment Plan (SIP) 9 Equity Funds Principal Emerging Bluechip Fund 11 Principal Multi Cap Growth Fund 12 Principal Tax Savings Fund 13 Principal Personal Tax Saver Fund 14 Principal Focused Multicap Fund 15 Principal Dividend Yield Fund 16 Principal Nifty 100 Equal Weight Fund 17 Hybrid Funds Principal Arbitrage Fund 18 Principal Hybrid Equity Fund 19 Principal Balanced Advantage Fund 20 Principal Equity Savings Fund 21 Fixed Income Funds Principal Cash Management Fund 22 Principal Low Duration Fund 23 Principal Short Term Debt Fund 24 Principal Dynamic Bond Fund 25 Principal Credit Risk Fund 26 Principal Corporate Bond Fund 27 Principal Ultra Short Term Fund 28 Solution Oriented Funds Principal Retirement Savings Fund (Progressive Plan) 29 Principal Retirement Savings Fund (Conservative Plan) 30 Principal Retirement Savings Fund (Moderate Plan) 31 Fund of Funds Principal Global Opportunities Fund 32 Other Details Annexure for returns of all the Schemes 33 1

4 EQUITY & DEBT MARKET OUTLOOK Equity Markets Round Up: September 2018 According to data from Institute of International Finance, non-resident portfolio flows into EM equity (ex-china) were (-) 1.9 Billion in September. Year-to-date, the outflows from EM equities (ex-china) now stand at USD 14 Billion. Outflows from EM equity have shown signs of slowing down however in the last month. India had outflows of USD 1.5 Billion during the month from offshore investors. Greater openness in China s bond market to foreign investors and MSCI s decision to include CNY denominated Chinese stocks in the benchmark index has led to greater inflows into Chinese equity and debt in 2018 which has to some extent crowded out flows into other EMs. During the month, MSCI EM (USD) index was down 0.76% while MSCI India (USD) was down 9.31%. While the Rupee weakened just over 2% during the month, the local indices were down substantially during the month as shown in the table. The markets were down in the backdrop of worries around liquidity tightness in the credit markets, negative news flow in the financials space, continued macro pressures, selling by FPIs and Rupee depreciation. Indian macros were impacted by higher oil prices (Brent is up 44% yoy), and weak trade performance. In value terms, merchandise exports in Q2 FY 19 were up 8.3% yoy while imports were up 20% during the same period. On the fiscal side there is a possibility that the target of 3.3% for FY 19 for the centre may be breached as GST revenues are tracking slightly below budget, the divestment number may undershoot and expenses may remain elevated ahead of elections. In terms of stock performance, all of the sectors were in the red. The IT sector however was relatively the best performer as the weaker Rupee should help earnings and management commentary was positive. Equity Market Outlook After the sharp fall in September, MSCI India (USD) has fallen 10.7% CYTD, broadly in line with MSCI EM (USD) index which has fallen 9.5% CYTD. The valuation premium that India had over MSCI EM has narrowed. The global risks are a significant tightening in global financial conditions induced by a pick up in inflation and inflation volatility. Continued trade frictions will almost certainly lead to lower structural global growth and higher US inflation as protectionism replaces competition (more pricing power to domestic producers and higher input costs). Geopolitics remains in the limelight as the US attempts to reset the global order. We have already seen the impact of the proposed sanctions on Iran in higher crude prices. While the global risk appetite remains low, we have seen some sort of slowdown in outflows from EMs. According to IIF, allocations to EMs are about 20% below their long term averages. While IIF expects inflows into EM equity to shrink about 25% in 2018 compared to the last year, it is likely that at the margin, EMs begin to show signs of stability after the correction seen so far. In India, though earnings are likely to show growth, we expect fund inflows to remain moderate and the markets to remain volatile ahead of elections. However, valuations having corrected and at a slight premium to historical numbers, we think equity are in a zone where they may provide good entry points for investors looking to invest for the medium to long term. Data Item Growth 1 Month 1 year MSCI EM Index (USD) MSCI EM Index Local MSCI World Index (USD) Indian Rupee Dollar Index (DXY) Crude Oil- Brent CRB Index Gold Copper Iron Ore Cotton (Cotlook A Index) Data as on 28th September Source: Bloomberg Indicators Aug-18 Sep-18 FII net flows (Rs. Crs) Mutual Fund net flows (Rs. Crs) 4, Exports (USD Billion) Imports (USD Billion) CPI IIP Data as on 28th September Souce: Bloomberg, NSDL and Sebi websites 2

5 Performance As on September 28, 2018* Broad Indices Index 1 Month 3 Months 6 Months 1 Year Nifty S&P BSE Sensex S&P BSE S&P BSE S&P BSE S&P BSE MID CAP S&P BSE SMALL CAP *Performance for less than one year are absolute returns. Source - MFI Explorer Sectoral Indices Index 1 Month 3 Months 6 Months 1 Year S&P BSE AUTO S&P BSE Bankex S&P BSE CD S&P BSE CG S&P BSE FMCG S&P BSE HC S&P BSE METAL S&P BSE Oil & Gas S&P BSE PSU S&P BSE Teck Fixed Income Market Update: September 2018 During the month, rates rose sharply across money market, gilts and corporate bonds. The main reasons were continued sharp rupee depreciation, further rise in crude oil prices, rise in US treasury yields post rate hike by FOMC and tight banking system liquidity. The ten yr gilt benchmark closed the month at 8.02%, 17 bps higher than previous month. The ten yr AAA Corporate bond benchmark closed at 8.85%, 10 bps higher than previous month. The five yr AAA corporate bond benchmark closed at 8.86%, 12 bps higher as compared to previous month. Ten yr SDL spreads remained in a range of bps to the ten yr gilt benchmark on lower than expected issuance. 1 year CD rates closed sharply higher at 8.70%, 63 bps higher previous month. 1 yr T bill yield closed 34 bps higher at 7.65%. 3 month CD rates closed at 7.25% (18 bps higher). Brent Crude oil prices rose during the month to USD per barrel. INR depreciated sharply on back of continued dollar strength and widening trade deficit to as compared to Rs in previous month. For the month of September, FPIs were net sellers in the debt market to the tune of Rs cr. India s August trade deficit came in at USD bn as compared to USD bn in previous month. The ten yr benchmark US treasury yield rose by 20 bps to close the month at 3.06%. August WPI data release came at 4.53%, lower than the previous reading of 5.09%. CPI for August came at 3.69% compared to 4.17% in previous month. July Industrial production (IIP) growth came at 6.6% compared to 6.9% for previous month. For the month banks borrowed on an average Rs Cr at various RBI liquidity facilities put together reflecting deficit liquidity conditions. RBI conducted two OMOs worth Rs cr in total. CMBs worth Rs cr matured during the month and this was not rolled over reflecting improved liquidity position of the govt. In order to address the tightening of liquidity conditions, RBI announced that they would be undertaking three OMOs worth Rs cr during October. Outlook: We expect Banking System liquidity deficit on account of tax outflows and increase in currency in circulation. Short Term money market rates are expected to remain benign on no rate hike and planned liquidity infusion by way of OMOs. Gilt and corporate bond yields may remain under pressure with upward bias due to worsening macros both domestically and globally. However OMO purchases should ease supply concerns and help to build up demand at auctions. There may also be evolving concerns on the fiscal front with dip in tax collections, recent cut in excise collections and risk to disinvestment target. 3

6 How to Read Factsheet Fund Manager - An employee of the asset management company such as a mutual fund or life insurer, who manages investments of the scheme. He is usually part of a larger team of fund managers and research analysts. Application Amount For Fresh Subscription - This is the minimum investment amount for a new investor in a mutual fund scheme. Minimum Additional Amount - This is the minimum investment amount for an existing investor in a mutual fund scheme. Yield To Maturity - The Yield to Maturity or the YTM is the rate of return anticipated on a bond if held until maturity. YTM is expressed as an annual rate. The YTM factors in the bond s current market price, par value, coupon interest rate and time to maturity. SIP - SIP or systematic investment plan works on the principle of making periodic investments of a fixed sum. It works similar to a recurring bank deposit. For instance, an investor may opt for an SlP that invests 500 every 15 th of the month in an equity fund for a period of three years. NAV - The NAV or the net asset value is the total asset value per unit of the mutual fund after deducting all related and permissible expenses. The NAV is calculated at the end of every business day. It is the value at which the investor enters or exits the mutual fund. Benchmark - A group of securities, usually a market index, whose performance is used as a standard or benchmark to measure investment performance of mutual funds, among other investments. Some typical benchmarks include the Nifty, Sensex, BSE200, BSE500, 10-Year G-sec. Entry Load - A mutual fund may have a sales charge or load at the time of entry and/or exit to compensate the distributor/agent. Entry load is charged at the time an investor purchases the units of a mutual fund. The entry load is added to the prevailing NAV at the time of investment. For instance, if the NAV is 100 and the entry load is 1%, the investor will enter the fund at 101. Note: SEBI, vide circular dated June 30, 2009 has abolished entry load and mandated that the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Exit Load - Exit load is charged at the time an investor redeems the units of a mutual fund. The exit load is deducted from the prevailing NAV at the time of redemption. For instance, if the NAV is 100 and the exit load is 1%, the redemption price would be 99 per unit. Modified Duration - Modified duration is the price sensitivity and the percentage change in price for a unit change in yield. Standard Deviation - Standard deviation is a statistical measure of the range of an investment s performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility. Sharpe Ratio - The Sharpe Ratio, named after its founder, the Nobel Laureate William Sharpe, is a measure of risk-adjusted returns. It is calculated using standard deviation and excess return to determine reward per unit of risk. Beta - Beta is a measure of an investment s volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security s price will be more volatile than the market. AUM - AUM or assets under management refers to the recent / updated cumulative market value of investments managed by a mutual fund or any investment firm. Holdings - The holdings or the portfolio is a mutual fund s latest or updated reported statement of investments/securities. These are usually displayed in terms of percentage to net assets or the rupee value or both. The objective is to give investors an idea of where their money is being invested by the fund manager. Nature Of Scheme - The investment objective and underlying investments determine the nature of the mutual fund scheme. For instance, a mutual fund that aims at generating capital appreciation by investing in stock markets is an equity fund or growth fund. Likewise, a mutual fund that aims at capital preservation by investing in debt markets is a debt fund or income fund. Each of these categories may have subcategories. Rating Profile - Mutual funds invest in securities after evaluating their creditworthiness as disclosed by the ratings. A depiction of the mutual fund in various investments based on their ratings becomes the rating profile of the fund. Typically, this is a feature of debt funds. MAAUM - Monthly Average Asset Under Management ++ ICRA has assigned credit risk rating of [ICRA]A1+mfs to Principal Low Duration Fund and credit risk rating of [ICRA]A1 mfs to Principal Cash Management Fund. Rating methodology used by ICRA is based on evaluating the inherent credit quality of the mutual funds portfolio. As a measure of the credit quality of a debt fund s assets, ICRA uses the concept of credit scores, based on ICRA s assessment of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA s assessment of a debt fund s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality. The ratings should, however, not be construed as an indication of the prospective performance of the Mutual fund scheme or of volatility in its returns. ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance which may lead to a revision in ratings. Source: ICRA Ltd. ++ CARE s fund credit quality rating is not a recommendation to purchase, sell, or hold a security / fund. It neither comments on the current market price, suitability for a particular investor nor on the prospective performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The ratings do not address the funds ability to meet the payment obligations to the investors. The ratings are based on current information furnished to CARE by the issuer or obtained by CARE from sources it considers reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CARE does not perform an audit in connection with any rating and may, on occasion, rely on unaudited information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Funds rated by CARE have paid a rating fee. DISCLAIMER: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. This factsheet is for informative purpose only and under no circumstances is to be used or considered as an investment advice. Terms of issue / load structure/ Scheme specific risk factors are set forth in the Scheme Information Document(SID). Copy of the same is available at all our Investor Service Centres. Alternatively, Investor can download the SID from our website - or can call us at to get a copy of the same. 4

7 Scheme s This product is suitable for investors who are seeking~ Riskometer Principal Focused Multicap Fund (An open ended equity scheme investing in maximum 30 Multi cap stocks) Principal Emerging Bluechip Fund (An open ended equity scheme investing in both large cap and midcap stocks.) Principal Multi Cap Growth Fund (An open ended equity scheme investing across large cap, mid cap, small cap stocks) Principal Dividend Yield Fund (An open ended equity scheme predominantly investing in dividend yielding stocks) Principal Nifty 100 Equal Weight Fund (An open ended scheme replicating/ tracking Nifty 100 Equal Weight Index) Principal Balanced Advantage Fund (An Open-ended dynamic asset allocation fund) Principal Personal Tax Saver Fund (An open ended equity linked saving scheme) Product Suitability Long term Capital Growth. Investment in equity & equity related securities including equity derivatives upto a maximum of 30 stocks across market capitalization. Long term Capital Growth. Investment in equity & equity related securities including equity derivatives of large & mid capitalization companies. Long term Capital Growth. Investment in equity & equity related securities including equity derivatives of companies across market capitalization. Long term Capital Growth. Investment in equity & equity related securities including equity derivatives of high dividend yield Companies. Long term Capital Growth. Investment in equity securities including equity derivatives of Nifty 100 Equal Weight Index companies. Long term Capital Growth. Investment in equity & equity related securities including equity derivatives as well as Debt/Money Market securities through a systematic allocation of Funds between Equity & Debt on the basis of the Price Earnings Ratio of Nifty 50. Long term Capital Growth with a three year lock-in. Investment in equity & equity related securities including equity derivatives of large capitalization Companies. Principal Tax Savings Fund (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Principal Hybrid Equity Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments) Principal Equity Savings Fund (An open ended scheme investing in equity, arbitrage and debt) Principal Retirement Savings Fund - Conservative Plan (An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)) Principal Retirement Savings Fund - Moderate Plan (An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)) Principal Retirement Savings Fund - Progressive Plan (An open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)) Principal Corporate Bond Fund (An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds) Principal Dynamic Bond Fund (An open ended dynamic debt scheme investing across duration) Principal Credit Risk Fund (An open ended debt scheme predominately investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds)) Principal Short Term Debt Fund (An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years.) Principal Arbitrage Fund (An open ended scheme investing in arbitrage opportunities) Principal Low Duration Fund (An open ended low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 6 months and 12 months) Principal Ultra Short Term Fund (An open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months and 6 months) Long term Capital Growth with a three year lock-in. Investment in equity & equity related securities including equity derivatives of companies across market capitalization. Income and Long term Capital Growth. Investment in equity & equity related securities, debt/money market securities as well as derivatives. Income generation and capital appreciation over the medium to long term. Investment in equity and equity related instruments, debt and money market instruments and arbitrage opportunities. Income generation and capital appreciation over the medium to long term. Investment in equity and equity related instruments, debt and money market instruments and arbitrage opportunities. Income and Long term capital growth. Investment in equity & equity related securities, debt/money market securities as well as derivatives. Long term Capital Growth. Investment in equity & equity related securities including equity derivatives of companies across market capitalization. Income over a Medium to long term investment horizon. Investment in AA+ and above Rated Corporate Bond & other Debt and Money Market Instruments. Income over a long term investment horizon. Investment in Debt & Money Market Instruments. Income over a Medium to long term investment horizon. Investment in AA and below Rated Corporate Debt & other Debt and Money Market Instruments. Income over a medium term investment horizon. Investment in Debt & Money Market Instruments. Income over short-term. Income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment. Income over a short term investment horizon. Investment in Debt & Money Market Instruments. Income over a short term investment horizon. Investment in Debt & Money Market instruments. Principal Global Opportunities Fund (An open ended fund of fund scheme investing in Principal Global Investors Funds - Origin Global Smaller Companies Fund) Long term Capital Growth. Investment in overseas mutual fund schemes. Principal Cash Management Fund (An Open-ended Liquid Scheme) Income over a short term investment horizon. Investment in Debt & Money Market Instruments, with maturity not exceeding 91 days. ~ Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 5

8 NAV (Net Asset Value) (As on September 28, 2018) Equity Funds Principal Emerging Bluechip Fund () Principal Multi Cap Growth Fund () Principal Tax Savings Fund () Regular Plan - Growth Regular Plan - Growth Regular Plan - Growth Regular Plan - Half Yearly Dividend Option Regular Plan - Half Yearly Dividend Option Regular Plan - Half Yearly Dividend Option Direct Plan - Growth Direct Plan - Growth Direct Plan - Growth Direct Plan - Half Yearly Dividend Option Direct Plan - Half Yearly Dividend Option Direct Plan - Half Yearly Dividend Option Principal Nifty 100 Equal Weight Fund () Principal Focused Multicap Fund () Principal Dividend Yield Fund () Regular Plan - Growth Regular Plan - Growth Regular Plan - Growth Regular Plan - Dividend Regular Plan - Half Yearly Dividend Option Regular Plan - Half Yearly Dividend Option Direct Plan - Growth Direct Plan - Growth Direct Plan - Growth Direct Plan - Dividend Direct Plan - Half Yearly Dividend Option Direct Plan - Half Yearly Dividend Option Principal Personal Tax Saver Fund Regular Plan - Growth Direct Plan - Growth () Hybrid Funds Principal Hybrid Equity Fund () Principal Balanced Advantage Fund () Principal Equity Savings Fund () Regular Plan - Growth Regular Plan - Growth Regular Plan - Growth Regular Plan - Monthly Dividend Option Regular Plan - Monthly Dividend Option Regular Plan - Quaterly Dividend Option Direct Plan - Growth Direct Plan - Growth Regular Plan - Half Yearly Dividend Option Direct Plan - Monthly Dividend Option Direct Plan - Monthly Dividend Option Direct Plan - Growth Direct Plan - Quaterly Dividend Option Direct Plan - Half Yearly Dividend Option Principal Arbitrage Fund Regular Plan - Growth Regular Plan - Monthly Dividend Option Direct Plan - Growth Direct Plan - Monthly Dividend Option () Fixed Income Funds Principal Cash Management Fund * () Principal Low Duration Fund () Principal Short Term Debt Fund () Regular Plan - Growth Regular Plan - Growth Regular Plan - Growth Regular Plan - Daily Dividend Option Regular Plan - Daily Dividend Option Regular Plan - Monthly Dividend Option Regular Plan - Weekly Dividend Option Regular Plan - Weekly Dividend Option Direct Plan - Growth Regular Plan - Monthly Dividend Option Regular Plan - Monthly Dividend Option Direct Plan - Monthly Dividend Option Direct Plan - Growth Direct Plan - Growth Direct Plan - Daily Dividend Option Direct Plan - Daily Dividend Option Direct Plan - Weekly Dividend Option Direct Plan - Weekly Dividend Option Direct Plan - Monthly Dividend Option Direct Plan - Monthly Dividend Option *NAV as on Principal Dynamic Bond Fund () Principal Credit Risk Fund () Principal Corporate Bond Fund () Regular Plan - Growth Regular Plan - Growth Regular Plan - Growth Regular Plan - Quaterly Dividend Option Regular Plan - Monthly Dividend Option Regular Plan - Monthly Dividend Option Regular Plan - Annually Dividend Option Direct Plan - Growth Regular Plan - Quaterly Dividend Option Direct Plan - Growth Direct Plan - Monthly Dividend Option Direct Plan - Growth Direct Plan - Quaterly Dividend Option Direct Plan - Annually Dividend Option Principal Ultra Short Term Fund Regular Plan - Growth Regular Plan - Daily Dividend Option Regular Plan - Weekly Dividend Option Regular Plan - Monthly Dividend Option Direct Plan - Growth Direct Plan - Monthly Dividend Option () Solution Oriented Funds Principal Retirement Savings Fund (CP) () Principal Retirement Savings Fund (PP) () Principal Retirement Savings Fund (MP) () Regular Sub Plan - Growth Regular Sub Plan - Growth Regular Sub Plan - Growth Direct Sub Plan - Growth Direct Sub Plan - Growth Direct Sub Plan - Growth Fund of Funds Principal Global Opportunities Fund Regular Plan - Growth Regular Plan - Dividend Direct Plan - Growth Direct Plan - Dividend () 6

9 Principal Fixed Income Funds Snapshot (As on September 30, 2018) Principal Ultra Short Term Fund Principal Corporate Bond Fund Principal Credit Risk Fund Principal Dynamic Bond Fund Principal Short Term Debt Fund Principal Low Duration Fund Principal Cash Management Fund Features Category Liquid Low Duration Short Duration Dynamic Bond Credit risk fund Corporate Bond Ultra Short Duration Invest in Debt and Money Market instruments such that Macaulay duration of the portfolio is between 3-6 months Invest a minimum of 80% into corporate bonds with rating of AA+ and above Invest across durations Invest a minimum of 65% into AA and below rated corporate bonds (excluding AA+ corporate bonds) Invest in Debt and Money Market instruments such that Macaulay duration of the portfolio is between 1-3 years Invest in Debt and Money Market instruments such that Macaulay duration of the portfolio is between 6-12 months Positioning Invest in debt and money market securities with maturity up to 91 days CRISIL Liquid Fund Index CRISIL Short Term Bond Fund Index NIFTY Credit Risk Bond Index CRISIL Composite Bond Fund Index CRISIL Short Term Bond Fund Index Benchmark Index CRISIL Liquid Fund Index CRISIL Low Duration Debt Index Month End AUM Gross YTM 6.61% 8.77% 8.88% 8.51% 9.53% 8.35% 8.15% Modified Duration 9 Days 234 Days 1.13 Yrs 2.44 Yrs 1.16 Yrs 489 Days 150 Days Average Maturity 10 Days 277 Days 1.32 Yrs 3.01 Yrs 1.45 Yrs 591 Days 164 Days MTM > 60 days (% to Net Assets) NIL If redeemend on or before 365 days from the date of allotment - 1% If redeemend on or before 365 days from the date of allotment - 1% If redeemed on or before 1Year from the date of allotment - 1 % Exit Load NIL NIL NIL Asset Allocation Certificate of Deposit 4.40% 11.98% % Commercial Paper 13.19% 10.17% 7.20% % % BONDS & NCDs % 75.39% 51.49% 81.31% 85.99% 51.24% Treasury Bill 1.95% 0.76% % 0.46% 0.65% Sovereign % 37.67% Cash and other Assets 80.46% 26.14% 10.85% 10.84% 6.11% 13.55% 22.76% Rating Break up AAA / A % 42.37% 56.16% 42.75% 35.48% 76.36% 61.56% % 26.43% 8.74% 37.56% 9.63% 15.03% AA / AA+ / AA- / AA+(SO) / AA-(SO) AA(SO) A1 / A(SO) / A- / A+/A % % - - Sovereign 1.95% 0.76% 6.56% 37.67% 0.38% 0.46% 0.65% Cash and Other Assets 80.46% 26.14% 10.85% 10.84% 6.11% 13.55% 22.76% 7

10 Equity/Hybrid Funds Snapshot (As on September 30, 2018) Equity Funds Hybrid Funds Principal Focused Multicap Fund Principal Emerging Bluechip Fund Principal Dividend Yield Fund Principal Multi Cap Growth Fund Principal Tax Savings Fund Principal Hybrid Equity Fund Principal Balanced Advanatge Fund Principal Equity Savings Fund Category Focused Fund Large and Midcap Fund Dividend Yield Fund Multicap Growth Fund ELSS Aggressive Hybrid Fund Balanced Advantage Fund Equity Savings Fund Scheme Features Type of Scheme Positioning Benchmark Index (An open ended equity scheme investing in maximum 30 Multi cap stocks) No of stocks not exceeding 30. S&P BSE 250 Large Midcap Index (An open ended equity scheme investing in both large cap and midcap stocks.) Minimum investments of 35% each into large and midcap stocks. (An open ended equity scheme predominantly investing in dividend yielding stocks) Seeks to invest predominantly in dividend yielding stocks. (An open ended equity scheme investing across large cap, mid cap, small cap stocks) Investing across large, mid and small cap stocks. (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Tax saving investment option with statutory 3 years lock-in. (An open ended hybrid scheme investing predominantly in equity and equity related instruments) Equity based hybrid scheme with 65%-80% equity allocation. NIFTY Large Midcap Nifty Dividend Opportunities Nifty 500 Index (w.e.f. Nifty 500 Index CRISIL Hybrid Index 250 Index (w.e.f. May April 23, 2018) - Aggressive Index 30, 2018) (An Open-ended dynamic asset allocation fund) Flexibility to invest 100% in Equity Basis PE ratio. 50% Nifty 100 Index + 35% CRISIL Short Term Bond Index + 15% Nifty Arbitrage Index (An open ended scheme investing in equity, arbitrage and debt) Investing in Equity, Arbitrage and Debt. "30% Nifty % CRISIL Liquid Fund Index" Inception Date 11-Nov Nov Oct Oct Mar Jan Dec May-02 Fund Manager Exit Load Dhimant Shah Dhimant Shah Dhimant Shah P.V.K. Mohan & Siddarth Mohta If redeemed on or before 1 Year from the date of allotment - 1% 1% - If redeemed within 365 days from the date of allotment. Nil - If redeemed after 365 days from the date of allotment. P.V.K. Mohan P.V.K. Mohan (For Equity Portion) & Bekxy Kuriakose (For Debt Portion) P.V.K. Mohan (For Equity Portion) & Bekxy Kuriakose (For Debt Portion) P.V.K. Mohan (For Equity Portion) & Pankaj Jain (For Debt Portion) NIL "If redeemed/ switched on or before 1 Nil (w.e.f August 02, year from the date of allotment: - Nil for 2017) redemption/ switch out of units upto 24% of the units allotted (the limit) - 1% on redemption in excess of 24% of the limit stated above- Redemption of units would be done on First in First out Basis (FIFO) Nil thereafter" * Quants Standard Devation 14.88% 18.30% 16.19% 17.69% 18.02% 12.23% 6.32% 4.72% Beta Sharpe Month End AUM , , No. of Stocks Top 10 Stocks Top 10 Sector Details Overweight Chemicals Chemicals Software Power Consumer Non Durables Auto Ancillaries Consumer Non Durables Consumer Non Durables Consumer Non Durables Consumer Non Durables Pharmaceuticals Finance Power Power Auto Auto Media & Entertainment Software Petroleum Products Construction Project Construction Project Software Software Power Finance Consumer Non Durables Banks Finance Finance Finance Consumer Non Durables Consumer Non Durables Underweight Pharmaceuticals Non - Ferrous Metals Pharmaceuticals Petroleum Products Petroleum Products Auto Consumer Durables Pharmaceuticals Power Industrial Capital Goods Consumer Durables Software Software Banks Industrial Products Chemicals * As on September 28,

11 Systematic Investment Plan (SIP) (As on September 28, 2018) Particulars Principal Emerging Bluechip Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (NIFTY Large Midcap 250 Index - TRI) Additional Benchmark (Nifty 50 - TRI) Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,11, ,15, ,24,739 3 Years SIP 3,60, ,23, ,27, ,42,725 5 Years SIP 6,00, ,12, ,48, ,14,724 7 Years SIP 8,40, ,61, ,68, ,36,010 Since Inception SIP 11,80, ,18, ,37, ,30,674 Inception Date - November 12, 2008 SCHEMES MANAGED BY MR. DHIMANT SHAH Particulars Principal Dividend Yield Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (Nifty Dividend Opportunities 50 Index - TRI) Additional Benchmark (Nifty 50 - TRI) Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,18, ,24, ,24,739 3 Years SIP 3,60, ,48, ,51, ,42,725 5 Years SIP 6,00, ,59, ,32, ,14,724 7 Years SIP 8,40, ,13, ,19, ,36, Years SIP 12,00, ,72, ,82, ,02,892 Since Inception SIP 16,70, ,12,293 NA NA ,74,204 Inception Date - October 15, 2004 Particulars Principal Focused Multicap Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (S&P BSE 250 Large Midcap - TRI) Additional Benchmark (Nifty 50 - TRI) Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,18, ,20, ,24,739 3 Years SIP 3,60, ,15, ,34, ,42,725 5 Years SIP 6,00, ,84, ,25, ,14,724 7 Years SIP 8,40, ,17, ,82, ,36, Years SIP 12,00, ,49, ,24, ,02,892 Since Inception SIP 15,40, ,58, ,53, ,87,291 Inception Date - November 11, 2005 Particulars Principal Multi Cap Growth Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (Nifty 500 Index - TRI) Additional Benchmark (Nifty 50 - TRI) Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,13, ,18, ,24,739 3 Years SIP 3,60, ,28, ,28, ,42,725 5 Years SIP 6,00, ,47, ,15, ,14,724 7 Years SIP 8,40, ,12, ,64, ,36, Years SIP 12,00, ,64, ,65, ,02,892 Since Inception SIP 21,50, ,02,62, ,06,40, ,45,502 Inception Date - October 25, 2000 Particulars Principal Tax Savings Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (Nifty 500 Index - TRI)** Additional Benchmark (Nifty 50 - TRI)^ Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,12, ,18, ,24,739 3 Years SIP 3,60, ,24, ,28, ,42,725 5 Years SIP 6,00, ,40, ,15, ,14,724 7 Years SIP 8,40, ,02, ,64, ,36, Years SIP 12,00, ,52, ,65, ,02,892 Since Inception SIP 26,30, ,43,46,902 Not Available Inception Date - March 31, 1996 SCHEMES MANAGED BY MR. P.V.K. MOHAN & SIDDARTH MOHTA SCHEMES MANAGED BY MR. P.V.K. MOHAN Different plans shall have a different expense structure. shown above are for Regular Plan - Growth option. Past performance may or may not be sustained in the future. The returns shown above are calculated using XIRR approach (CAGR ) assuming investment of 10,000/- on the 1st business day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions. Load is not taken into consideration for computation of performance. For performance of all schemes, Investors are advised to refer section on page 33. Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market. Mr. Dhima nt Shah manages Principal Emerging Bluechip Fund (w.e.f. June 2011), Principal Focused Multicap Fund (w.e.f. July 2017) and Principal Dividend Yield Fund (w.e.f. December 2011). Mr. P.V.K. Mohan manages Principal Multi Cap Growth Fund (w.e.f. September 2010), Principal Tax Savings Fund (w.e.f. September 2010), Principal Tax Saver Fund (w.e.f. July 2017) and Equity portion of Principal Balanced Advantage Fund and Principal Equity Savings Fund. Mr. Siddarth Mohta has been appointed as a Associate Fund Manager of Principal Multi Cap Growth Fund (w.e.f. August 2018) ^Since TRI data is not available for the period to for Nifty 50 Index, SIP performance for since inception period is not provided. **Since TRI data is not available for the period to for Nifty 500 Index, SIP performance for since inception period is not provided. *Since performance data for Nifty Dividend Opportunities 50 Index is not available, SIP performance since inception period is not provided. 9

12 Systematic Investment Plan (SIP) (As on September 28, 2018) SCHEMES MANAGED BY MR. P.V.K. MOHAN Principal Personal Tax Saver Fund - Growth* Total Amount Invested (in ) Scheme s Scheme s Benchmark (Nifty 500 Index- TRI)** SCHEME MANAGED BY MR. P.V.K. MOHAN & MR. PANKAJ JAIN Additional Benchmark (Nifty 50 - TRI)^ Particulars Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,13, ,18, ,24,739 3 Years SIP 3,60, ,93, ,28, ,42,725 5 Years SIP 6,00, ,42, ,15, ,14,724 7 Years SIP 8,40, ,47, ,64, ,36, Years SIP 12,00, ,39, ,65, ,02,892 Since Inception SIP 26,90, ,77,79,998 Not Available Inception Date - March 31, 1996 Particulars Principal Equity Savings Fund - Growth Total Amount Invested (in ) Principal Balanced Advantage Fund - Growth Total Amount Invested (in ) SCHEME MANAGED BY MR. P.V.K. MOHAN & MS. BEKXY KURIAKOSE Scheme s Scheme s Benchmark (50% Nifty 100 TRI + 35% CRISIL Short Term Bond Index + 15% Nifty Arbitrage) Yield * # SCHEME MANAGED BY MR. RAJAT JAIN Additional Benchmark (Nifty 50 - TRI) Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,22, ,47, ,24,739 3 Years SIP 3,60, ,99, ,93, ,42,725 5 Years SIP 6,00, ,35, ,04, ,14,724 7 Years SIP 8,40, ,08, ,36, ,36,010 Since Inception SIP 9,30, ,93, ,46, ,29,420 Inception Date - December 16, 2010 Principal Hybrid Equity Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Scheme s Benchmark (30% Nifty 50 - TRI + 70% CRISIL Liquid Fund Index) Scheme s Benchmark (CRISIL Hybrid Aggressive Index)# Additional Benchmark (CRISIL 10 year Gilt Index) Particulars Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,21, ,24, ,20,063 3 Years SIP 3,60, ,96, ,13, ,72,951 5 Years SIP 6,00, ,14, ,50, ,83,625 7 Years SIP 8,40, ,74, ,75, ,29, Years SIP 12,00, ,08, ,36, ,11,390 Since Inception SIP 19,60, ,78, ,75, ,33,278 Inception Date - May 23, 2002 Additional Benchmark (Nifty 50 - TRI) Particulars Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,19, ,21, ,24,739 3 Years SIP 3,60, ,39, ,18, ,42,725 5 Years SIP 6,00, ,50, ,86, ,14,724 7 Years SIP 8,40, ,38, ,76, ,36, Years SIP 12,00, ,79, ,78, ,02,892 Since Inception SIP 22,40, ,65, ,56, ,03,39,154 Inception Date - January 14, 2000 Principal Nifty 100 Equal Weight Fund - Growth Total Amount Invested (in ) Scheme s Scheme s Benchmark (Nifty 100 Equal Weight - TRI) Additional Benchmark (Nifty 50 - TRI) Particulars Yield Market Value (in ) Yield Market Value (in ) Yield Market Value (in ) 1 Year SIP 1,20, ,15, ,13, ,24,739 3 Years SIP 3,60, ,02, ,03, ,42,725 5 Years SIP 6,00, ,30, ,75, ,14,724 7 Years SIP 8,40, ,82, ,13, ,36, Years SIP 12,00, ,91, ,68, ,02,892 Since Inception SIP 23,00, ,03,165 NA NA ,11,48,250 Inception Date - July 27, 1999 Different plans shall have a different expense structure. shown above are for Regular Plan - Growth option. Past performance may or may not be sustained in the future. The returns shown above are calculated using XIRR approach (CAGR ) assuming investment of 10,000/- on the 1st business day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions. Load is not taken into consideration for computation of performance. For performance of all schemes, Investors are advised to refer section on page 33. Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market. Mr. P.V.K Mohan manages Principal Tax Saver Fund (w.e.f. July 2017), Principal Balanced Advantage Fund Equity Portion (w.e.f. July 2017) Principal Hybrid Equity Fund Equity Portion (w.e.f. May 2010) and Principal Equity Savings Fund Equity Portion (w.e.f. June 2016). Mr. Pankaj Jain manages Principal Equity Savings Fund Debt portion (w.e.f. January 2018). Ms. Bekxy Kuriakose manages Principal Hybrid Equity Fund - Debt Portion (w.e.f. Mar 2016) and Principal Balanced Advantage Fund - Debt Portion (w.e.f. January 01, 2018) Mr. Rajat Jain manages Principal Nifty 100 Equal Weight Fund (w.e.f. August 2015) *Fresh sale of units i.e. by way of purchase/ Switch-ins and registration of fresh SIP arrangement under the Scheme is suspended till further notice. # The equity component of CRISIL Hybrid Aggressive Index is represented by total returns variant of S&P BSE 200 With effect from June 10, 2018, fresh allotment of units in Principal Personal Tax saver Fund even in case of SIPs registered prior to close of business hours of March 31, 2017 is suspended. ^Since TRI data is not available for the period to for Nifty 50 Index, SIP performance for since inception period is not provided. **Since TRI data is not available for the period to for Nifty 500 Index, SIP performance for since inception period is not provided. *Since performance data for Nifty 100 Equal Weight Index is not available, SIP performance since inception period is not provided. 10

13 Principal Emerging Bluechip Fund (An open ended equity scheme investing in both large cap and midcap stocks.) Investment Objective: The primary objective of the Scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of large cap & midcap companies. Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Market Cap Allocation (As on September 30, 2018) (% of NAV) 50% 40% 30% 20% Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: 1, AUM: 1, Exit Load: If redeemed on or before 1 Year from the date of allotment - 1% & Benchmark Regular Plan: November 12, 2008 Direct Plan: January 1, 2013 Benchmark: NIFTY Large Midcap 250 Index (w.e.f. May 30, 2018) Options Both the Plans offer Growth & Half Yearly Dividend Option. Half Yearly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 18.30% Beta^ : 1.13 Sharpe Ratio^ (Annualised) : 0.47 Turnover Ratio**: % 35.36% : Dhimant Shah Managing Since: June 2011 Total Experience: 26 years Direct Plan % Regular Plan % Sector Allocation (As on September 30, 2018) (% of NAV) 21.76% 10% 1.93% 0.03% 0.39% 1.70% 0% Equity & Equity Related Instruments of Large Cap Companies Equity &Equity RelatedInstruments of Mid Cap Companies Equity &Equity Related Instruments of other than Large &Mid Cap Companies Others TreasuryBill Mutual Funds Cash & Other Assets Banks 10.76% Software 9.24% Finance 7.71% Consumer Non Durables 7.65% Industrial Products 6.89% Pharmaceuticals 5.90% Chemicals 5.84% Auto Ancillaries 5.57% Consumer Durables 4.20% Cement 3.60% Auto 3.49% Gas 3.34% Construction Project 2.83% Petroleum Products 2.34% Transportation 2.05% Media & Entertainment 1.71% Textile Products 1.71% Construction 1.55% Ferrous Metals 1.31% Commercial Services 1.04% Hotels, Resorts And Other Recreational Activities 1.03% Telecom - Equipment & Accessories 0.99% Pesticides 0.97% Power 0.94% Non - Ferrous Metals 0.91% Retailing 0.89% Textiles - Cotton 0.88% Services 0.84% Industrial Capital Goods 0.78% Textiles - Synthetic 0.62% Paper 0.30% Market Cap Ranges will be determined as per prevailing SEBI/ AMFI guidelines where Large Cap: 1st -100th company in terms of full market capitalization. Mid Cap: 101st -250th company in terms of full market capitalization. Small Cap: 251st company onwards in terms of full market capitalization. Rating % of NAV Banks HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Ltd Kotak Mahindra Bank Ltd State Bank of India 1.19 City Union Bank Ltd Bandhan Bank Ltd Software 9.24 Tata Consultancy Services Ltd Dividend Update Principal Emerging Bluechip Fund % of NAV Derivatives Infosys Ltd L&T Technology Services Ltd Cyient Ltd Larsen & Toubro Infotech Ltd MindTree Ltd Finance Bajaj Finance Ltd Bajaj Finserv Ltd Mahindra & Mahindra Financial Services Ltd Bharat Financial Inclusion Ltd Muthoot Finance Ltd Cholamandalam Investment and Finance 0.79 Company Ltd. Dewan Housing Finance Corporation Ltd Consumer Non Durables 7.65 Britannia Industries Ltd ITC Ltd Jubilant Foodworks Ltd GlaxoSmithKline Consumer Healthcare Ltd Parag Milk Foods Ltd United Spirits Ltd Industrial Products 6.89 AIA Engineering Ltd Graphite India Ltd Finolex Cables Ltd Schaeffler India Ltd Mold-Tek Packaging Ltd Ramkrishna Forgings Ltd Pharmaceuticals 5.90 Torrent Pharmaceuticals Ltd Biocon Ltd Natco Pharma Ltd Cadila Healthcare Ltd Divi's Laboratories Ltd Chemicals 5.84 Navin Fluorine International Ltd Fine Organic Industries Ltd Tata Chemicals Ltd Atul Ltd Himadri Speciality Chemical Ltd Auto Ancillaries 5.57 Exide Industries Ltd MRF Ltd Apollo Tyres Ltd Motherson Sumi Systems Ltd Amara Raja Batteries Ltd Consumer Durables 4.20 Bata India Ltd Dixon Technologies (India) Ltd Havells India Ltd Bajaj Electricals Ltd Cement 3.60 Shree Cement Ltd Cash & Cash Equivalents 1.70 Top 10 Equity Holdings * Holding less than 0.75% Rating % of NAV Dalmia Bharat Ltd Birla Corporation Ltd Auto 3.49 Eicher Motors Ltd Mahindra & Mahindra Ltd Gas 3.34 Petronet LNG Ltd Indraprastha Gas Ltd Gujarat State Petronet Ltd Petroleum Products 2.34 NIFTY Large Midcap 250 Index - TRI Date Regular Plan Direct Plan Nifty 50 - TRI % of NAV Derivatives Reliance Industries Ltd Construction Project 2.25 Voltas Ltd KEC International Ltd Transportation 2.05 Container Corporation of India Ltd TCI Express Ltd Media & Entertainment 1.71 PVR Ltd Sun TV Network Ltd Ferrous Metals Jindal Steel & Power Ltd Steel Authority of India Ltd Commercial Services 1.04 Security and Intelligence 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 15-Dec N.A. N.A. 16-Jun N.A. N.A. 23-Dec N.A. N.A. Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable Services (I) Ltd. Hotels, Resorts And Other Recreational Activities 1.03 The Indian Hotels Company Ltd Textile Products 1.01 SRF Ltd Telecom - Equipment & 0.99 Accessories Sterlite Technologies Ltd Pesticides 0.97 UPL Ltd Power 0.94 CESC Ltd Non - Ferrous Metals 0.91 Hindustan Zinc Ltd Retailing 0.89 Future Retail Ltd Textiles - Cotton 0.88 Vardhman Textiles Ltd Services 0.84 Thomas Cook (India) Ltd Construction 0.82 NBCC (India) Ltd Industrial Capital Goods 0.78 BEML Ltd Other Equities* 3.61 Total Equity Treasury Bills DAY T-BILL 2018 Sovereign 0.03 Investment Funds/Mutual Funds 0.39 Principal Short Term Debt Fund - Direct Plan - Growth Option Principal Cash Management Fund - Growth Option

14 Investment Objective: To achieve long term capital appreciation. Principal Multi Cap Growth Fund (An open ended equity scheme investing across large cap, mid cap, small cap stocks) Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: 1% - If redeemed within 365 days from the date of allotment. Nil - If redeemed after 365 days from the date of allotment. & Benchmark Regular Plan: October 25, 2000 Direct Plan: January 1, 2013 Benchmark: Nifty 500 Index (w.e.f. April 23, 2018) Options Both the Plans offer Growth & Half Yearly Dividend Option. Half Yearly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. : P.V.K. Mohan & Siddarth Mohta (Associate Fund Manager) Managing Since: September 2010 & August 2018 Total Experience: 25 years & 09 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 17.69% Beta^ : 1.15 Sharpe Ratio^ (Annualised) : 0.47 Turnover Ratio**: 0.25 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Banks 17.19% Consumer Non Durables 13.28% Software 9.38% Finance 5.49% Petroleum Products 4.97% Construction Project 4.92% Power 4.62% Pharmaceuticals 4.44% Auto 4.19% Cement 3.45% Market Cap Allocation (As on September 30, 2018) (% of NAV) 80% 60% 40% 20% 0% 57.42% 12.97% 20.85% 0.88% 0.06% 0.96% 6.86% Equity & Equity Related Instruments of Large Cap Companies Equity &EquityRelated Instruments ofmid Cap Companies Equity & Equity Related Instruments of Small Cap Companies Others Treasury Bill Mutual Funds Cash & Other Assets % of % of NAV NAV Derivatives Banks HDFC Bank Ltd ICICI Bank Ltd State Bank of India 1.96 Kotak Mahindra Bank Ltd City Union Bank Ltd Karur Vysya Bank Ltd Axis Bank Ltd Canara Bank 0.76 The Federal Bank Ltd Bank of Baroda 0.64 Vijaya Bank 0.57 Syndicate Bank 0.30 Consumer Non Durables ITC Ltd Dabur India Ltd GlaxoSmithKline Consumer Healthcare Ltd Marico Ltd Britannia Industries Ltd Bombay Burmah Trading Corporation Ltd United Spirits Ltd Software 9.38 Tata Consultancy Services Ltd Infosys Ltd Tech Mahindra Ltd HCL Technologies Ltd Finance 5.49 Housing Development Finance Corporation Ltd ICICI Prudential Life Insurance Company Ltd Shriram Transport Finance Company Ltd Dewan Housing Finance Corporation Ltd Petroleum Products 4.97 Reliance Industries Ltd Construction Project 4.92 Larsen & Toubro Ltd KEC International Ltd Ircon International Ltd Hindustan Construction Company Ltd Power 4.62 NTPC Ltd Tata Power Company Ltd Kalpataru Power Transmission Ltd Rattanindia Power Ltd Pharmaceuticals 4.44 Abbott India Ltd Sun Pharmaceutical Industries Ltd Aurobindo Pharma Ltd Dishman Carbogen Amcis Ltd Auto 4.19 Mahindra & Mahindra Ltd Dividend Update Principal Multi Cap Growth Fund % of NAV % of NAV Derivatives Maruti Suzuki India Ltd Bajaj Auto Ltd Hero MotoCorp Ltd Cement 3.45 The India Cements Ltd Ultratech Cement Ltd Birla Corporation Ltd JK Cement Ltd Industrial Products 2.46 Ramkrishna Forgings Ltd Jain Irrigation Systems Ltd Auto Ancillaries 2.41 Asahi India Glass Ltd Rico Auto Industries Ltd Chemicals 2.31 Phillips Carbon Black Ltd Rain Industries Ltd Fertilisers 1.99 Chambal Fertilisers and Chemicals Ltd Hotels, Resorts And Other Recreational Activities 1.97 The Indian Hotels Company Ltd Ferrous Metals 1.92 Kirloskar Ferrous Industries Ltd Steel Authority of India Ltd Non - Ferrous Metals 1.80 National Aluminium Company Ltd Hindustan Zinc Ltd Consumer Durables 1.60 Bajaj Electricals Ltd Minerals/Mining 1.42 Coal India Ltd Transportation 0.72 Interglobe Aviation Ltd Textile Products 0.63 Raymond Ltd Construction 0.59 Gayatri Projects Ltd Milestone Global Ltd. ** 0.01 Diversified Consumer Services 0.37 CL Educate Ltd Total Equity Treasury Bills DAY T-BILL 2018 Sovereign 0.06 Investment Funds/Mutual Funds 0.96 Principal Short Term Debt Fund - Direct Plan - Growth Option 0.96 Index Futures / Options 0.15 Cash & Cash Equivalents 6.86 Top 10 Equity Holdings **Thinly traded/non traded securities and illiquid securities as defined in SEBI Regulations and Guidelines. Nifty 500 Index - TRI Date Regular Plan Direct Plan Nifty 50 - TRI 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 15-Dec Jun Dec Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. 12

15 Principal Tax Savings Fund (An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) Investment Objective: To build a high quality growth-oriented portfolio to provide long-term capital gains to the investors. The scheme aims at providing returns through capital appreciation. Minimum Investment Amount () New Investor- 500 SIP- 500 Existing Investor- 500 STP- 500 (Available after lock-in period) RWP- 500 (Available after lock-in period) 6 installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: NIL & Benchmark Regular Plan: March 31, 1996 Direct Plan: January 1, 2013 Benchmark: Nifty 500 Index Options Both the Plans offer Growth & Half Yearly Dividend Option. (W.e.f. September 11, 2017) : P.V.K. Mohan Managing Since: September 2010 Total Experience: 25 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 18.02% Beta^ : 1.17 Sharpe Ratio^ (Annualised) : 0.45 Turnover Ratio** : 0.37 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Banks 18.55% Consumer Non Durables 14.02% Software 9.78% Finance 6.01% Construction Project 5.23% Pharmaceuticals 4.89% Power 4.85% Petroleum Products 4.52% Auto 4.37% Cement 3.87% Market Cap Allocation (As on September 30, 2018) (% of NAV) 80% 60% 40% 20% 60.53% 13.89% 22.36% 0.89% 0.04% 2.29% 0% Equity & Equity Related Instruments of Large Cap Companies Equity &EquityRelated Instruments ofmid Cap Companies Equity & Equity Related Instruments of Small Cap Companies Others Treasury Bill Cash & Other Assets % of NAV Banks HDFC Bank Ltd ICICI Bank Ltd State Bank of India 2.00 Kotak Mahindra Bank Ltd City Union Bank Ltd Axis Bank Ltd Karur Vysya Bank Ltd Canara Bank 0.88 The Federal Bank Ltd Vijaya Bank 0.71 Bank of Baroda 0.66 Syndicate Bank 0.37 Consumer Non Durables ITC Ltd Dabur India Ltd GlaxoSmithKline Consumer Healthcare Ltd Britannia Industries Ltd Marico Ltd Bombay Burmah Trading Corporation Ltd United Spirits Ltd Software 9.78 Tata Consultancy Services Ltd Infosys Ltd Tech Mahindra Ltd HCL Technologies Ltd Finance 6.01 Housing Development Finance Corporation Ltd ICICI Prudential Life Insurance Company Ltd Shriram Transport Finance Company Ltd Dewan Housing Finance Corporation Ltd Construction Project 5.23 Larsen & Toubro Ltd KEC International Ltd Ircon International Ltd Hindustan Construction Company Ltd Pharmaceuticals 4.89 Abbott India Ltd Aurobindo Pharma Ltd Sun Pharmaceutical Industries Ltd Dishman Carbogen Amcis Ltd Power 4.85 Tata Power Company Ltd NTPC Ltd Kalpataru Power Transmission Ltd Rattanindia Power Ltd Dividend Update Principal Tax Savings Fund % of NAV Petroleum Products 4.52 Reliance Industries Ltd Auto 4.37 Mahindra & Mahindra Ltd Maruti Suzuki India Ltd Bajaj Auto Ltd Hero MotoCorp Ltd Cement 3.87 The India Cements Ltd Ultratech Cement Ltd Birla Corporation Ltd JK Cement Ltd Auto Ancillaries 2.64 Asahi India Glass Ltd Rico Auto Industries Ltd Industrial Products 2.62 Ramkrishna Forgings Ltd Jain Irrigation Systems Ltd Chemicals 2.55 Phillips Carbon Black Ltd Rain Industries Ltd Hotels, Resorts And Other Recreational Activities 2.07 The Indian Hotels Company Ltd Fertilisers 2.02 Chambal Fertilisers and Chemicals Ltd Ferrous Metals 1.96 Kirloskar Ferrous Industries Ltd Steel Authority of India Ltd Non - Ferrous Metals 1.95 National Aluminium Company Ltd Hindustan Zinc Ltd Consumer Durables 1.67 Bajaj Electricals Ltd Minerals/Mining 1.48 Coal India Ltd Transportation 0.85 Interglobe Aviation Ltd Textile Products 0.72 Raymond Ltd Construction 0.65 Gayatri Projects Ltd Diversified Consumer Services 0.40 CL Educate Ltd Total Equity Treasury Bills DAY T-BILL 2018 Sovereign 0.04 Cash & Cash Equivalents 2.29 Nifty TRI* Date Regular Plan Direct Plan Nifty 50 - TRI** 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. *As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of Nifty 500 Index PRI values from date to and TRI values since **As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of Nifty 50 Index PRI values from date to and TRI values since Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 31-Mar NA NA 15-Jan NA NA Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. Top 10 Equity Holdings 13

16 Principal Personal Tax Saver Fund^ (An open ended equity linked saving scheme) Investment Objective: To provide long term growth of capital. The Investment Manager will aim to achieve a return on assets in excess of the performance of Nifty 500 Index. Minimum Investment Amount () New Investor- 500 SIP- 500 Existing Investor- 500 STP- 500 (Available after lock-in period) RWP- 500 (Available after lock-in period) 6 installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: NIL & Benchmark Regular Plan: March 31, 1996 Direct Plan: January 1, 2013 Benchmark: Nifty 500 Index Options Both the Plan do not have any options at present. : P.V.K. Mohan Managing Since: July 2017 Total Experience: 25 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 16.50% Beta^ : 1.09 Sharpe Ratio^ (Annualised) : 0.15 Turnover Ratio** : 0.50 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. % of NAV Banks HDFC Bank Ltd ICICI Bank Ltd State Bank of India 1.99 Kotak Mahindra Bank Ltd Axis Bank Ltd City Union Bank Ltd Karur Vysya Bank Ltd Canara Bank 0.97 Vijaya Bank 0.92 The Federal Bank Ltd Bank of Baroda 0.69 Syndicate Bank 0.44 Consumer Non Durables ITC Ltd Dabur India Ltd GlaxoSmithKline Consumer Healthcare Ltd Britannia Industries Ltd Marico Ltd Bombay Burmah Trading Corporation Ltd United Spirits Ltd Software Tata Consultancy Services Ltd Infosys Ltd Tech Mahindra Ltd HCL Technologies Ltd Finance 6.34 Housing Development Finance Corporation Ltd ICICI Prudential Life Insurance Company Ltd Shriram Transport Finance Company Ltd Dewan Housing Finance Corporation Ltd Petroleum Products 5.58 Reliance Industries Ltd Pharmaceuticals 5.37 Aurobindo Pharma Ltd Sun Pharmaceutical Industries Ltd Abbott India Ltd Dishman Carbogen Amcis Ltd Auto 4.58 Mahindra & Mahindra Ltd Maruti Suzuki India Ltd Bajaj Auto Ltd Hero MotoCorp Ltd % of NAV Construction Project 4.16 Larsen & Toubro Ltd Ircon International Ltd Hindustan Construction Company Ltd Power 3.99 NTPC Ltd Tata Power Company Ltd Cement 3.43 The India Cements Ltd Ultratech Cement Ltd Birla Corporation Ltd Auto Ancillaries 2.82 Asahi India Glass Ltd Rico Auto Industries Ltd Industrial Products 2.69 Ramkrishna Forgings Ltd Jain Irrigation Systems Ltd Chemicals 2.66 Phillips Carbon Black Ltd Rain Industries Ltd Hotels, Resorts And Other Recreational Activities 2.15 The Indian Hotels Company Ltd Ferrous Metals 2.08 Kirloskar Ferrous Industries Ltd Steel Authority of India Ltd Fertilisers 2.04 Chambal Fertilisers and Chemicals Ltd Consumer Durables 1.69 Bajaj Electricals Ltd Minerals/Mining 1.55 Coal India Ltd Non - Ferrous Metals 1.04 National Aluminium Company Ltd Transportation 0.89 Interglobe Aviation Ltd Textile Products 0.77 Raymond Ltd Construction 0.73 Gayatri Projects Ltd Diversified Consumer Services 0.42 CL Educate Ltd Total Equity Treasury Bills DAY T-BILL 2018 Sovereign 0.05 Cash & Cash Equivalents 0.55 Top 10 Equity Holdings Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Banks 19.80% Consumer Non Durables 14.52% Software 10.10% Finance 6.34% Petroleum Products 5.58% Pharmaceuticals 5.37% Auto 4.58% Construction Project 4.16% Power 3.99% Cement 3.43% Market Cap Allocation (As on September 30, 2018) (% of NAV) 80% 63.57% 60% 40% 20% 0% 14.40% 20.56% 0.87% 0.05% 0.55% Equity & Equity Related Instruments of Large Cap Companies Equity &Equity RelatedInstruments of MidCap Companies Equity & Equity Related Instruments of Small Cap Companies Others Treasury Bill Cash & Other Assets Dividend Update Principal Personal Tax Saver Fund Nifty TRI* Date Regular Plan Direct Plan Nifty 50 - TRI** 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. *As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR of Nifty 500 Index PRI values from date to and TRI values since **As TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of Nifty 50 Index PRI values from date to and TRI values since Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 25-Mar NA NA 26-Feb NA NA 31-Dec NA NA Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. ^Fresh sale of units i.e. by way of purchase/ Switch-ins and registration of fresh SIP arrangement under the Scheme is suspended till further notice. With effect from June 10, 2018, fresh allotment of units in Principal Personal Tax saver Fund even in case of SIPs registered prior to close of business hours of March 31, 2017 is suspended. 14

17 Principal Focused Multicap Fund (An open ended equity scheme investing in maximum 30 Multi cap stocks) Investment Objective: To provide capital appreciation and /or dividend distribution by investing in companies across market capitalization. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: If redeemed on or before 1 Year from the date of allotment - 1% & Benchmark Regular Plan: November 11, 2005 Direct Plan: January 1, 2013 Benchmark: S&P BSE 250 Large Midcap Index Options Both the Plans offer Growth & Half Yearly Dividend Option. Half Yearly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. : Dhimant Shah Managing Since: July 2017 Total Experience: 26 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 14.88% Beta^ : 1.01 Sharpe Ratio^ (Annualised) : 0.28 Turnover Ratio** : 0.83 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Market Cap Allocation (As on September 30, 2018) (% of NAV) 100% 77.50% 80% 60% 40% 20% 0% Banks 17.70% Consumer Non Durables 14.72% Software 13.94% Auto 7.45% Finance 7.14% Petroleum Products 6.62% Chemicals 4.57% Construction Project 4.12% Cement 3.54% Industrial Products 2.66% Equity & Equity Related Instruments of Large Cap Companies Equity & Equity Related Instruments of Mid Cap Companies Equity & Equity Related Instruments of Small Cap Companies Others TreasuryBill Cash & Other Assets 10.15% 6.80% 1.04% 0.11% 4.40% % of NAV Banks HDFC Bank Ltd ICICI Bank Ltd Kotak Mahindra Bank Ltd State Bank of India 2.46 Consumer Non Durables ITC Ltd Hindustan Unilever Ltd Britannia Industries Ltd Asian Paints Ltd Software Infosys Ltd Tata Consultancy Services Ltd L&T Technology Services Ltd NIIT Ltd Auto 7.45 Hero MotoCorp Ltd Maruti Suzuki India Ltd Bajaj Auto Ltd Finance 7.14 Housing Development Finance Corporation Ltd Bajaj Finserv Ltd Petroleum Products 6.62 Reliance Industries Ltd Chemicals 4.57 Navin Fluorine International Ltd NOCIL Ltd Construction Project 4.12 Larsen & Toubro Ltd Ircon International Ltd Dividend Update Principal Focused Multicap Fund % of NAV Cement 3.54 Shree Cement Ltd Industrial Products 2.66 AIA Engineering Ltd Pharmaceuticals 2.56 Abbott India Ltd Media & Entertainment 2.50 Zee Entertainment Enterprises Ltd Non - Ferrous Metals 2.38 Vedanta Ltd Gas 2.23 GAIL (India) Ltd Telecom - Equipment & Accessories 1.99 Sterlite Technologies Ltd Ferrous Metals 1.37 JSW Steel Ltd Total Equity Treasury Bills 0.11 TBILL 91 DAYS 2018 Sovereign 0.11 Cash & Cash Equivalents 4.40 S&P BSE 250 Large Midcap - TRI Date Regular Plan Direct Plan Nifty 50 - TRI 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 15-Dec Jun Dec Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. Top 10 Equity Holdings 15

18 Principal Dividend Yield Fund (An open ended equity scheme predominantly investing in dividend yielding stocks) Investment Objective: To provide capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of companies that have a relatively high dividend yield. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: If redeemed on or before 1 Year from the date of allotment - 1% & Benchmark Regular Plan: October 15, 2004 Direct Plan: January 1, 2013 Benchmark: Nifty Dividend Opportunities 50 Index Options Both the Plans offer Growth & Half Yearly Dividend Option. Half Yearly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. : Dhimant Shah Managing Since: December 2011 Total Experience: 26 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 16.19% Beta^ : 1.10 Sharpe Ratio^ (Annualised) : 0.54 Turnover Ratio** : 0.64 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Software 20.33% Consumer Non Durables 14.51% Banks 10.18% Auto 6.52% Petroleum Products 5.69% Chemicals 4.73% Gas 3.77% Industrial Products 3.41% Construction Project 3.37% Cement 3.27% Market Cap Allocation (As on September 30, 2018) (% of NAV) 80% 60% 40% 20% 0% 58.42% 13.93% 20.76% 2.69% 0.05% 0.11% 4.04% Equity & Equity Related Instruments of Large Cap Companies Equity &EquityRelated Instruments ofmid Cap Companies Equity & Equity Related Instruments of Small Cap Companies Others Treasury Bill Mutual Funds Cash & Other Assets % of NAV Software Infosys Ltd Tata Consultancy Services Ltd HCL Technologies Ltd Cyient Ltd Larsen & Toubro Infotech Ltd NIIT Ltd Sasken Technologies Ltd Tech Mahindra Ltd Cigniti Technologies Ltd Consumer Non Durables Hindustan Unilever Ltd ITC Ltd VST Industries Ltd Colgate Palmolive (India) Ltd Banks HDFC Bank Ltd ICICI Bank Ltd State Bank of India 1.65 Vijaya Bank 1.18 IndusInd Bank Ltd Kotak Mahindra Bank Ltd City Union Bank Ltd Auto 6.52 Bajaj Auto Ltd Maruti Suzuki India Ltd Hero MotoCorp Ltd Petroleum Products 5.69 Reliance Industries Ltd Bharat Petroleum Corporation Ltd Hindustan Petroleum Corporation Ltd Chemicals 4.73 NOCIL Ltd Aarti Industries Ltd Fine Organic Industries Ltd Phillips Carbon Black Ltd Gas 3.77 GAIL (India) Ltd Indraprastha Gas Ltd Petronet LNG Ltd Industrial Products 3.41 AIA Engineering Ltd Uflex Ltd HEG Ltd Construction Project 3.37 Ircon International Ltd Larsen & Toubro Ltd Dividend Update Principal Dividend Yield Fund % of NAV KEC International Ltd Cement 3.27 Ultratech Cement Ltd Dalmia Bharat Ltd Auto Ancillaries 3.02 Asahi India Glass Ltd MRF Ltd Exide Industries Ltd Non - Ferrous Metals 2.73 Vedanta Ltd National Aluminium Company Ltd Hindustan Zinc Ltd Paper 2.70 International Paper Appm Ltd Orient Paper & Industries Ltd Ferrous Metals 2.23 Kirloskar Ferrous Industries Ltd Steel Authority of India Ltd Jindal Steel & Power Ltd Pharmaceuticals 1.90 Aurobindo Pharma Ltd Dishman Carbogen Amcis Ltd Textile Products 1.69 SRF Ltd Himatsingka Seide Ltd Finance 1.10 Bajaj Holdings & Investment Ltd Telecom - Services 0.96 Bharti Airtel Ltd Hotels, Resorts And Other Recreational Activities 0.96 The Indian Hotels Company Ltd Power 0.88 NTPC Ltd Pesticides 0.88 PI Industries Ltd Construction 0.68 NBCC (India) Ltd Consumer Durables 0.29 Sheela Foam Ltd Total Equity Treasury Bills DAY T-BILL 2018 Sovereign 0.05 Investment Funds/Mutual Funds 0.11 Principal Cash Management Fund Growth Option Cash & Cash Equivalents 4.04 Nifty Dividend Opportunities 50 - TRI Date Regular Plan Direct Plan Nifty 50 - TRI 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) NA NA Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 15-Dec NA NA 16-Jun Dec Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. Top 10 Equity Holdings 16

19 Principal Nifty 100 Equal Weight Fund (An open ended scheme replicating/ tracking Nifty 100 Equal Weight Index) Investment Objective: To invest principally in securities that comprise Nifty 100 Equal Weight Index and subject to tracking errors endeavour to attain results commensurate with the Nifty 100 Equal Weight Index. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: 1% - if redeemed on or before 90 days from the date of allotment; Nil - if redeemed after 90 days from the date of allotment. & Benchmark Regular Plan: July 27, 1999 Direct Plan: January 1, 2013 Benchmark: Nifty 100 Equal Weight Index Options Both the Plans offer Growth & Dividend Option. Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. : Rajat Jain Managing Since: August 2015 Total Experience: 29 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 14.77% Beta^ : 0.86 Sharpe Ratio^ (Annualised) : 0.18 Turnover Ratio**: 0.74 Tracking Deviation*: 0.34% Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. * Since Benchmark of the Fund change from Nity 50 to Nifty 100 Equal Weight (w.e.f 10-May-2018), Tracking Error is Calculated as below Nifty 50 TRI is consider from ( 03-Aug-2015 to 09-May-2018) & Nifty 100 Equal Weight TRI is consider for (10-May-2018 to 28-Sep-2018) Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Finance 13.59% Consumer Non Durables 10.08% Banks 8.92% Pharmaceuticals 8.11% Auto 6.64% Software 6.29% Cement 5.21% Petroleum Products 4.08% Industrial Capital Goods 4.02% Non - Ferrous Metals 3.07% Market Cap Allocation (As on September 30, 2018) (% of NAV) 100% 80% 60% 40% 20% 0% 94.41% 5.07% 0.09% 0.06% 0.37% Equity & Equity Related Instruments of Large Cap Companies Equity &Equity RelatedInstrumentsofMid Cap Companies Others TreasuryBill Cash & Other Assets % of NAV Finance HDFC Standard Life Insurance Company Ltd Shriram Transport Finance Company Ltd ICICI Prudential Life Insurance Company Ltd The New India Assurance Company Ltd Bajaj Finserv Ltd LIC Housing Finance Ltd Aditya Birla Capital Ltd L&T Finance Holdings Ltd Housing Development Finance Corporation Ltd ICICI Lombard General Insurance Company Ltd Bajaj Finance Ltd General Insurance Corporation Of India 0.95 SBI Life Insurance Company Ltd Indiabulls Housing Finance Ltd Consumer Non Durables Hindustan Unilever Ltd Asian Paints Ltd Marico Ltd ITC Ltd Britannia Industries Ltd Procter & Gamble Hygiene and Health Care Ltd United Spirits Ltd Dabur India Ltd Godrej Consumer Products Ltd Colgate Palmolive (India) Ltd Banks 8.92 Axis Bank Ltd Bandhan Bank Ltd State Bank of India 1.01 ICICI Bank Ltd Kotak Mahindra Bank Ltd HDFC Bank Ltd IndusInd Bank Ltd Bank of Baroda 0.93 Yes Bank Ltd Pharmaceuticals 8.11 Biocon Ltd Cipla Ltd Dr. Reddy's Laboratories Ltd Lupin Ltd Sun Pharmaceutical Industries Ltd Aurobindo Pharma Ltd Cadila Healthcare Ltd Piramal Enterprises Ltd Auto 6.64 Ashok Leyland Ltd Bajaj Auto Ltd Hero MotoCorp Ltd Maruti Suzuki India Ltd Mahindra & Mahindra Ltd Eicher Motors Ltd Tata Motors Ltd Tata Motors Ltd. A-DVR 0.09 Software 6.29 Tata Consultancy Services Ltd Infosys Ltd Tech Mahindra Ltd HCL Technologies Ltd Wipro Ltd Oracle Financial Services Software Ltd Cement 5.21 ACC Ltd Shree Cement Ltd Ambuja Cements Ltd Ultratech Cement Ltd Principal Nifty 100 Equal Weight Fund Dividend Update Nifty 100 Equal Weight - TRI Date Regular Plan Direct Plan Nifty 50 - TRI % of NAV Grasim Industries Ltd Petroleum Products 4.08 Reliance Industries Ltd Bharat Petroleum Corporation Ltd Hindustan Petroleum Corporation Ltd Indian Oil Corporation Ltd Industrial Capital Goods 4.02 Bharat Electronics Ltd ABB India Ltd Siemens Ltd Bharat Heavy Electricals Ltd Non - Ferrous Metals 3.07 Vedanta Ltd Hindustan Zinc Ltd Hindalco Industries Ltd Auto Ancillaries 3.04 Bosch Ltd MRF Ltd Motherson Sumi Systems Ltd Power 2.96 NTPC Ltd Power Grid Corporation of India Ltd NHPC Ltd Transportation 2.92 Container Corporation of India Ltd Interglobe Aviation Ltd Adani Ports and Special Economic Zone Ltd Ferrous Metals 2.89 JSW Steel Ltd Tata Steel Ltd Steel Authority of India Ltd Oil 2.08 Oil India Ltd Oil & Natural Gas Corporation Ltd Minerals/Mining 2.03 NMDC Ltd Coal India Ltd Consumer Durables 2.03 Titan Company Ltd Havells India Ltd Gas 2.02 GAIL (India) Ltd Petronet LNG Ltd Media & Entertainment 1.99 Zee Entertainment Enterprises Ltd Sun TV Network Ltd Telecom - Services 1.83 Bharti Airtel Ltd Vodafone Idea Ltd Pesticides 1.04 UPL Ltd Construction Project 1.00 Larsen & Toubro Ltd Retailing 0.97 Avenue Supermarts Ltd Telecom - Equipment & Accessories 0.96 Bharti Infratel Ltd Chemicals 0.96 Pidilite Industries Ltd Construction 0.84 DLF Ltd Total Equity Treasury Bill 0.06 TBILL 91 DAYS 2018 Sovereign 0.06 Cash & Cash Equivalents Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) N/A N/A Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 24-Dec NA NA Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. 17 Top 10 Equity Holdings

20 Principal Arbitrage Fund (An open ended scheme investing in arbitrage opportunities) Investment Objective: To generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.there is no assurance or guarantee that the investment objective of the Scheme will be realized. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Note: ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period. # Total Expense Ratio includes GST on management fees. * Effective February 01, Asset Under Managment ( Cr) MAAUM: AUM: 9.44 Exit Load: 0.50% - If redeemed on or before 30 days from the date of allotment. NIL - If redeemed after 30 days from the date of allotment. & Benchmark Regular Plan: April 21, 2016 Direct Plan: April 21, 2016 Benchmark: Nifty 50 Arbitrage Index Options Both the Plans offer Monthly* Dividend & Growth Option. Monthly* Dividend Option under both the Plan offers facility of Payout, Reinvestment and Sweep. : Rajat Jain Managing Since: April 2016 Total Experience: 29 years Other Details (As on September 30, 2018) Turnover Ratio**: 9.42 Direct Plan % Regular Plan % % of NAV % to Net Assets Derivatives Finance Multi Commodity Exchange of India Ltd IDFC Ltd Indiabulls Housing Finance Ltd Reliance Capital Ltd Banks ICICI Bank Ltd Yes Bank Ltd Pharmaceuticals Aurobindo Pharma Ltd Sun Pharmaceutical Industries Ltd Lupin Ltd Telecom - Services Bharti Airtel Ltd Petroleum Products Reliance Industries Ltd Power CESC Ltd Tata Power Company Ltd Ferrous Metals Steel Authority of India Ltd Cement The India Cements Ltd Construction IRB Infrastructure Developers Ltd Auto Escorts Ltd Tata Motors Ltd Industrial Capital Goods BEML Ltd Media & Entertainment TV18 Broadcast Ltd Total Equity Treasury Bill 0.10 TBILL 91 DAYS 2018 Sovereign 0.10 Investment Funds/Mutual Funds Principal Cash Management Fund - Growth Option Mutual Fund Cash & Cash Equivalents Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Finance 15.49% Banks 9.29% Pharmaceuticals 9.16% Telecom - Services 6.10% Petroleum Products 5.33% Power 4.46% Ferrous Metals 4.34% Cement 3.75% Construction 2.54% Auto 2.50% Dividend Update Principal Arbitrage Fund Nifty 50 Arbitrage Index Date Regular Plan Direct Plan Nifty 50 - TRI 1 Year ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Above one year performance of Principal Arbitrage Fund is not given as the scheme have not been in existence for 3 years. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 17-Sep Aug Jul Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. 18

21 Principal Hybrid Equity Fund (Erstwhile Principal Balanced Fund) (An open ended hybrid scheme investing predominantly in equity and equity related instruments) Investment Objective: The Investment objective of the Scheme is to provide long-term appreciation and current income by investing in a portfolio of equity, equity related securities and fixed income securities. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: 1, AUM: 1, Exit Load: If redeemed/ switched on or before 1 year from the date of allotment: - Nil for redemption/ switch out of units upto 24% of the units allotted (the limit) - 1% on redemption in excess of 24% of the limit stated above- Redemption of units would be done on First in First out Basis (FIFO) Nil thereafter & Benchmark Regular Plan: January 14, 2000 Direct Plan: January 1, 2013 Benchmark: CRISIL Hybrid Aggressive Index Options Both the Plans offer Growth & Monthly Dividend Option. Monthly Dividend Option under both the Plan offers facility of Payout, Reinvestment and Sweep. : P.V.K. Mohan (For Equity Portion) & Bekxy Kuriakose (For Debt Portion) Managing Since: May 2010 & Mar 2016 Total Experience: 25 years & 18 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^@ (Annualised): 12.23% Beta^@ : 1.22 Sharpe Ratio^@ (Annualised) : 0.64 Turnover : 1.59 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management For equity portion only. Average Maturity of the Debt (As on Sep 30, 2018) Excluding Debt Mutual Fund units: 1.65 years (33.16% of the net assets) Debt Mutual Fund units: Principal Credit Risk Fund : 1.45 years (0.98% of the net assets) (As on September 30, 2018) Modified Duration of the Debt (As on Sep 30, 2018) Excluding Debt Mutual Fund units: 1.35 years (33.16% of the net assets) Debt Mutual Fund units: Principal Credit Risk Fund : 1.16 years (0.98% of the net assets) (As on September 30, 2018) Gross Yield To Maturity of the Debt 7.97% Market Cap Allocation (As on Sep 30, 2018) (% of NAV) Equity & Equity Related Instruments of Large Cap Co Equity & Equity Related Instruments of Mid Cap Co Equity & Equity Related Instruments of Small Cap Co Others 0.86 Debt Mutual Funds 0.98 Cash & Other Assets Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Banks 11.21% Consumer Non Durables 10.59% Software 10.01% Finance 4.46% Power 3.87% Petroleum Products 3.80% Non - Ferrous Metals 2.42% Construction Project 2.19% Pharmaceuticals 1.82% Auto 1.77% Rating % of NAV Banks HDFC Bank Ltd ICICI Bank Ltd State Bank of India 1.26 Kotak Mahindra Bank Ltd Axis Bank Ltd Karur Vysya Bank Ltd The Federal Bank Ltd Bank of Baroda 0.52 Vijaya Bank 0.18 Consumer Non Durables ITC Ltd Dabur India Ltd GlaxoSmithKline Consumer Healthcare Ltd Hindustan Unilever Ltd Marico Ltd Britannia Industries Ltd Bombay Burmah Trading Corporation Ltd Software Infosys Ltd Tata Consultancy Services Ltd Larsen & Toubro Infotech Ltd Tech Mahindra Ltd Cyient Ltd HCL Technologies Ltd Finance 4.46 Housing Development Finance Corporation Ltd ICICI Prudential Life Insurance Company Ltd Mahindra & Mahindra Financial Services Ltd Magma Fincorp Ltd Power 3.87 NTPC Ltd Tata Power Company Ltd Power Grid Corporation of India Ltd Petroleum Products 3.80 Reliance Industries Ltd Non - Ferrous Metals 2.42 Vedanta Ltd National Aluminium Company Ltd Hindustan Zinc Ltd Construction Project 2.19 Larsen & Toubro Ltd Ircon International Ltd Pharmaceuticals 1.82 Aurobindo Pharma Ltd Sun Pharmaceutical Industries Ltd Industrial Products 1.77 Ramkrishna Forgings Ltd Jain Irrigation Systems Ltd Uflex Ltd Auto 1.77 Mahindra & Mahindra Ltd Maruti Suzuki India Ltd Ferrous Metals 1.62 Kirloskar Ferrous Industries Ltd Steel Authority of India Ltd Cement 1.50 Ambuja Cements Ltd The India Cements Ltd Birla Corporation Ltd Hotels, Resorts And Other Recreational Activities 1.40 The Indian Hotels Company Ltd Fertilisers 1.34 Chambal Fertilisers and Chemicals Ltd % of NAV Derivatives Principal Hybrid Equity Fund CRISIL Hybrid Aggressive Index* Dividend Update Date Regular Plan Direct Plan Rating % of NAV Minerals/Mining 1.20 Coal India Ltd Gas 1.08 GAIL (India) Ltd Chemicals 1.06 Phillips Carbon Black Ltd Consumer Durables 0.99 Bajaj Electricals Ltd Media & Entertainment 0.75 Zee Entertainment Enterprises Ltd Auto Ancillaries 0.29 Asahi India Glass Ltd Construction 0.23 ITD Cementation India Ltd Diversified Consumer Services 0.01 CL Educate Ltd Total Equity BONDS & NCD National Bank for Agriculture CRISIL and Rural Development AAA 1.82 Hindalco Industries Ltd CRISIL AA 1.58 Reliance Industries Ltd CRISIL 1.17 Top 10 Equity Holdings AAA CRISIL AAA Bharat Petroleum Corporation Ltd 1.02 Dewan Housing Finance Corporation Ltd BWR AAA 1.01 Piramal Enterprises Ltd [ICRA]AA 0.93 Tata Motors Ltd. CARE AA Dewan Housing Finance BWR AAA 0.86 Corporation Ltd CRISIL Reliance Jio Infocomm Ltd 0.78 AAA Power Finance Corporation CRISIL 0.67 Ltd AAA Jamnagar Utilities & Power CRISIL 0.61 Private Ltd AAA Vedanta Ltd CRISIL AA 0.59 Aspire Home Finance [ICRA]A Corporation Ltd CRISIL Export-Import Bank of India 0.31 AAA Housing Development CRISIL 0.31 Finance Corporation Ltd AAA Piramal Enterprises Ltd [ICRA]AA 0.31 Dewan Housing Finance BWR AAA 0.31 Corporation Ltd [ICRA] ICICI Bank Ltd 0.30 AA+ IND A Ess Kay Fincorp Ltd 0.27 (SO) CARE AA+ Avanse Financial Services Ltd 0.19 (SO) Sovereign % Government of India Sovereign % Government of India Sovereign % Government of India Sovereign % Government of India Sovereign % Government of India Sovereign 0.01 Commercial Paper 1.55 Edelweiss Agri Value [ICRA]A Chain Ltd. CRISIL Tata Power Company Ltd A1+ CRISIL Vedanta Ltd A1+ Investment Funds/ 0.98 Mutual Funds Principal Credit Risk Fund - Mutual 0.98 Direct Plan - Growth Option Fund Index Futures / Options Other Current Assets / (Liabilities) Cash & Cash Equivalents Nifty 50 - TRI % of NAV Derivatives 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) NA NA Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. * The equity component of CRISIL Hybrid Aggressive Index is represented by total returns variant of S&P BSE 200 Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 17-Sep Aug Jul Jun Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. The scheme features of Principal Balanced Fund has changed w.e.f June 11,

22 Principal Balanced Advantage Fund (Erstwhile Principal SMART Equity Fund) (An Open-ended dynamic asset allocation fund) Investment Objective: The primary objective of the scheme is to seek to generate long term capital appreciation with relatively lower volatility through systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. The Scheme will decide on allocation of funds into equity assets based on equity market Price Earnings Ratio (PE Ratio) levels. When the markets become expensive in terms of Price to Earnings Ratio; the Scheme will reduce its allocation to equities and move assets into cash future arbitrage/ equity derivatives, debt and/or money market instruments and vice versa. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: If redeemed/ switched on or before 1 year from the date of allotment: - Nil for redemption/ switch out of units upto 24% of the units allotted (the limit) - 1% on redemption in excess of 24% of the limit stated above - Redemption of units would be done on First in First out Basis (FIFO) Nil thereafter & Benchmark Regular Plan: December 16, 2010 Direct Plan: January 1, 2013 Benchmark: 50% Nifty 100 Index + 35% CRISIL Short Term Bond Index + 15% Nifty Arbitrage Index Options Both the Plans offer Growth & Monthly Dividend Option. Monthly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. : P.V.K. Mohan (For Equity Portion) & Bekxy Kuriakose (For Debt Portion) Managing Since: July 2017 & January 2018 Total Experience: 25 years & 18 years Ratios & Other Details (As on September 28, 2018) Standard Deviation^ (Annualised): 6.32% Beta^ : 0.82 Sharpe Ratio^ (Annualised) : 0.06 Turnover Ratio** : 6.32 Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.60% risk free rate of return (1 days - MIBOR Rate As on September 28, 2018). ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management fees. Sector Allocation of Equity Instruments (Top 10) (As on September 30, 2018) (% of NAV) Banks 13.64% Pharmaceuticals 12.47% Finance 10.27% Auto 9.49% Consumer Non Durables 5.79% Software 3.47% Power 3.27% Cement 1.87% Petroleum Products 1.34% Construction Project 1.08% Market Cap Allocation (As on September 30, 2018) (% of NAV) 60% 52.11% 40% 20% 0% 9.63% 2.82% 0.40% 18.43% 1.93% 14.68% Equity & Equity Related Instruments of Large Cap Companies Equity &Equity RelatedInstruments of Mid Cap Companies Equity &Equity RelatedInstruments of Small Cap Companies Others Debt InvestmentFunds/Mutual Funds Cash & Other Assets Rating / Industry % to Net Assets % to Net Assets Derivatives Banks ICICI Bank Ltd State Bank of India Punjab National Bank Kotak Mahindra Bank Ltd Pharmaceuticals Aurobindo Pharma Ltd Sun Pharmaceutical Industries Ltd Wockhardt Ltd Finance Multi Commodity Exchange of India Ltd Dewan Housing Finance Corporation Ltd Indiabulls Housing Finance Ltd Housing Development Finance Corporation Ltd ICICI Prudential Life Insurance Company Ltd Auto Maruti Suzuki India Ltd Tata Motors Ltd Bajaj Auto Ltd Mahindra & Mahindra Ltd Escorts Ltd Tata Motors Ltd. A-DVR Consumer Non Durables 5.79 ITC Ltd Marico Ltd GlaxoSmithKline Consumer Healthcare Ltd Hindustan Unilever Ltd Britannia Industries Ltd Dabur India Ltd Software 3.47 Tata Consultancy Services Ltd Infosys Ltd Tech Mahindra Ltd Power NTPC Ltd Power Grid Corporation of India Ltd Tata Power Company Ltd Reliance Power Ltd Dividend Update Principal Balanced Advantage Fund Date Regular Plan Direct Plan Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV 17-Sep Aug Jul Jun Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. The scheme features of Principal SMART Equity Fund has changed w.e.f June 4, 2018 Rating / Industry % to Net Assets % to Net Assets Derivatives Cement Century Textiles & Industries Ltd Petroleum Products 1.34 Reliance Industries Ltd Construction Project 1.08 Larsen & Toubro Ltd Ircon International Ltd Minerals/Mining 0.85 Coal India Ltd Ferrous Metals 0.81 Steel Authority of India Ltd Non - Ferrous Metals 0.61 Vedanta Ltd Total Equity BONDS & NCD Dewan Housing Finance Corporation BWR AAA 3.39 Ltd Vedanta Ltd CRISIL AA 2.93 National Bank for Agriculture and Rural CRISIL AAA 2.87 Development JM Financial Products Ltd CRISIL AA 2.34 Piramal Enterprises Ltd [ICRA]AA 1.76 Reliance Jio Infocomm Ltd CRISIL AAA 1.29 Dewan Housing Finance Corporation BWR AAA 1.17 Ltd Sovereign % Government of India Sovereign % Government of India Sovereign % Government of India Sovereign 0.57 Commercial Paper 0.58 Cox & Kings Ltd. BWR A Treasury Bills DAY T-BILL 2018 Sovereign 0.35 Investment Funds/Mutual Funds 1.93 Principal Cash Management Fund - Growth Option Mutual Fund 1.93 Cash & Cash Equivalents % Nifty 100 TRI Index + 35% CRISIL Short Term Bond Index + 15% Nifty Arbitrage Index Nifty 50 - TRI 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Top 10 Equity Holdings 20

23 Principal Equity Savings Fund (An open ended scheme investing in equity, arbitrage and debt) Investment Objective: To provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated and the scheme does not assure or guarantee any returns. Minimum Investment Amount () New Investor- 5,000 SIP- 500 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: Nil (w.e.f August 02, 2017) & Benchmark Regular Plan: May 23, 2002 Direct Plan: January 1, 2013 Benchmark: 30% Nifty % CRISIL Liquid Fund Index Options Both the Plans offer Growth & Half yearly and Quarterly Dividend Option. : P.V.K. Mohan (For Equity Portion) & Pankaj Jain (For Debt Portion) Managing Since: June 2016 & January 2018 Total Experience: 25 years & 16 years Month End Quants of the Debt (As on September 30, 2018) Average Maturity: 213 Days Modified Duration: 173Days Gross Yield to Maturity: 7.45% Turnover Ratio** : 6.02 Direct Plan % Regular Plan % Note: ** The Turnover Rate (PTR) means the lower of aggregate sales or purchases made during the 12 month rolling year/period divided by the 12 month rolling year/period Average asset under Management for the relevant year/period (As on September 30, 2018). # Total Expense Ratio includes GST on management For equity portion only. % to Net % of Assets NAV Derivatives Finance Housing Development Finance Corporation Ltd Reliance Capital Ltd Dewan Housing Finance Corporation Ltd Indiabulls Housing Finance Ltd Mahindra & Mahindra Financial Services Ltd ICICI Prudential Life Insurance Company Ltd Auto Maruti Suzuki India Ltd Ashok Leyland Ltd Tata Motors Ltd. A-DVR Mahindra & Mahindra Ltd Tata Motors Ltd Banks HDFC Bank Ltd State Bank of India ICICI Bank Ltd Bank of Baroda Punjab National Bank Axis Bank Ltd Consumer Non Durables Dabur India Ltd ITC Ltd Britannia Industries Ltd GlaxoSmithKline Consumer Healthcare Ltd Marico Ltd Power CESC Ltd NTPC Ltd Tata Power Company Ltd Power Grid Corporation of India Ltd Reliance Infrastructure Ltd Pharmaceuticals Aurobindo Pharma Ltd Dr. Reddy's Laboratories Ltd Sun Pharmaceutical Industries Ltd Telecom - Services Bharti Airtel Ltd Software 2.49 Tata Consultancy Services Ltd Infosys Ltd Cement % of NAV % to Net Assets Derivatives Century Textiles & Industries Ltd Non - Ferrous Metals Hindalco Industries Ltd Vedanta Ltd Construction Project 1.84 Larsen & Toubro Ltd Ircon International Ltd Media & Entertainment Zee Entertainment Enterprises Ltd Dish TV India Ltd Sun TV Network Ltd Minerals/Mining 1.34 Coal India Ltd Petroleum Products 1.21 Reliance Industries Ltd Auto Ancillaries Exide Industries Ltd Construction DLF Ltd IRB Infrastructure Developers Ltd Industrial Products Jain Irrigation Systems Ltd Ferrous Metals 0.77 Steel Authority of India Ltd Consumer Durables Bata India Ltd Total Equity BONDS & NCD 9.54 Suryoday Small Finance Bank Ltd. [ICRA]A 2.64 Piramal Enterprises Ltd. [ICRA]AA 2.22 Muthoot Finance Ltd. CRISIL AA 1.90 Power Finance CRISIL Corporation Ltd. AAA 1.29 Ess Kay Fincorp Ltd. IND A (SO) 0.82 Power Grid Corporation CRISIL of India Ltd. AAA 0.67 Commercial Paper 2.61 Cox & Kings Ltd. BWR A Treasury Bills DAY T-BILL 2018 Sovereign 0.31 Investment Funds/Mutual Funds 2.08 Principal Cash Management Mutual Fund -Growth Option Fund 2.08 Cash & Cash Equivalents Top 10 Equity Holdings Sector Allocation (Top 10) (As on September 30, 2018) (% of NAV) Finance 13.03% Auto 8.22% Banks 6.71% Consumer Non Durables 6.68% Power 6.13% Pharmaceuticals 5.02% Telecom - Services 2.51% Software 2.49% Cement 2.39% Non - Ferrous Metals 1.88% Market Cap Allocation (As on September 30, 2018) (% of NAV) 45.77% 50% 40% 30% 20% 10% 0% 16.44% 1.68% 1.25% 12.46% 2.08% 20.32% Equity & Equity Related Instruments of Large Cap Companies Equity &Equity RelatedInstrumentsofMid Cap Companies Equity &Equity RelatedInstrumentsof Small CapCompanies Others Debt Mutual Funds Cash & Other Assets Dividend Update Principal Equity Savings Fund 30% Nifty 50 - TRI + 70% CRISIL Liquid Fund Index Date Regular Plan Direct Plan CRISIL 10 Year Gilt Index 1 Year ( to ) 4.10% % % Years ( to ) 6.71% % % Years ( to ) 7.96% % % Since Inception ( to ) 7.95% % % Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV Quarterly Dividend (Last 3 Quarters) 17-Sep N.A. N.A. 15-Jun N.A. N.A. 15-Dec N.A. N.A. Half Yearly Dividend 15-Jun Dec Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. 21

24 Principal Cash Management Fund (An open ended liquid scheme) Investment Objective: To provide investors with as high a level of income available from short-term investments as is considered consistent with preservation of capital and maintenance of liquidity, by investing in a portfolio of money market and investment grade debt instruments. Credit Risk Rating [ICRA] A1 mfs++ Minimum Investment Amount () New Investor- 5,000 SIP- 2,000 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: NIL & Benchmark Regular Plan: August 30, 2004 Direct Plan: January 1, 2013 Benchmark: CRISIL Liquid Fund Index Rating % of NAV Commercial Paper SREI Equipment Finance Ltd. [ICRA]A Dewan Housing Finance Corporation Ltd. CRISIL A SREI Equipment Finance Ltd. [ICRA]A Certificate of Deposits 4.40 The South Indian Bank Ltd. CARE A Treasury Bills DAY T-BILL 2018 Sovereign 1.95 Cash & Cash Equivalents ^The aggregate investments by other schemes of Principal Mutual Fund as on September 30, 2018: 7.95 Crore Options Both the Plans offer Dividend & Growth Option. Dividend Frequency - Daily / Weekly / Monthly : Pankaj Jain Managing Since: January 2012 Total Experience: 16 years Month End Quants of the Debt (As on September 30, 2018) Average Maturity: 10 Days Modified Duration: 9 Days Gross Yield to Maturity: 6.61% Expense Ratio # (As on September 30, 2018) Direct Plan % Regular Plan % Note: # Total Expense Ratio includes GST on management fees. Composition By Assets (As on Sep 30, 2018) (% of NAV) Rating Profile (As on September ) (% of NAV) A1+ Sovereign Cash & Cash Equivalents Commercial Paper 13.19% Certificate of Deposits 4.40% Treasury Bills 1.95% Cash and Other Assets 80.46% 1.95% 17.59% 80.46% 0.00% 30.00% 60.00% 90.00% Performance (As on 30/09/2018) Dividend Update Principal Cash Management Fund CRISIL Liquid Fund Index Date Regular Plan Direct Plan CRISIL 1 Year T-Bill Index 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV Monthly Dividend (Last 3 Months) 16-Aug Jul Jun Past performance may or may not be sustained in the future. * On face value of 1,000. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. In respect of Liquid Scheme(s) NAV applicable shall be subject to receipt of valid application/switch-in request at the OPT and credit of entire subscription/switch-in amounts into the Bank Account of the concerning Scheme(s)/Plan(s) and funds are available for utilization by the Scheme(s)/Plan(s), within relevant cut-off time as applicable to the relevant Scheme(s)/ Plan(s). Past performance is no guarantee of future result. (++ for rating methodology please refer page 4.) 22

25 Principal Low Duration Fund (An open ended low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 6 months and 12 months) Investment Objective: To generate regular income and capital appreciation through investments in debt securities and money market instruments. Credit Risk Rating [ICRA] A1+mfs++ Minimum Investment Amount () New Investor- 5,000 SIP- 2,000 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: NIL & Benchmark Regular Plan: September 14, 2004 Direct Plan: January 1, 2013 Benchmark: CRISIL Low Duration Debt Index Options Both the Plans offer Dividend & Growth Option. Dividend Frequency - Daily / Weekly / Monthly : Pankaj Jain Managing Since: January 2012 Total Experience: 16 years Month End Quants of the Debt (As on September 30, 2018) Average Maturity: 277 Days Modified Duration: 234 Days Gross Yield to Maturity: 8.77% Macaulay Duration: 8.60 months Rating % of NAV BONDS & NCD Piramal Enterprises Ltd. [ICRA]AA 9.12 Avanse Financial Services Ltd. CARE AA+ (SO) 6.94 Indiabulls Housing Finance Ltd. BWR AAA 6.88 Dewan Housing Finance Corporation Ltd. BWR AAA 6.68 Dewan Housing Finance Corporation Ltd. BWR AAA 6.66 Muthoot Finance Ltd. CRISIL AA 6.28 JM Financial Products Ltd. CRISIL AA 5.79 Ess Kay Fincorp Ltd. IND A (SO) 2.60 Commercial Paper Cox & Kings Ltd. BWR A SREI Equipment Finance Ltd. [ICRA]A Certificate of Deposits Small Industries Development Bank of India CRISIL A Axis Bank Ltd. CRISIL A Treasury Bills DAY T-BILL 2018 Sovereign 0.76 Cash & Cash Equivalents ^The aggregate investments by other schemes of Principal Mutual Fund as on September 30, 2018: 1.01 Crore Direct Plan % Regular Plan % Note: # Total Expense Ratio includes GST on management fees. Composition By Assets (As on Sep 30, 2018) (% of NAV) Rating Profile (As on September 30, 2018) (% of NAV) A1+ AA AAA AA+(SO) A(SO) Sovereign Cash & Cash Equivalents BONDS & NCD 50.95% Commercial Paper 10.17% Certificate of Deposits 11.98% Treasury Bills 0.76% Cash and Other Assets 26.14% 2.60% 0.76% 6.94% 22.15% 21.19% 20.22% 26.14% 0.00% 10.00% 20.00% 30.00% Dividend Update Principal Low Duration Fund CRISIL Low Duration Debt Index Date Regular Plan Direct Plan CRISIL 1 Year T-Bill Index 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV Monthly Dividend (Last 3 Months) 17-Sep Aug Jul Past performance may or may not be sustained in the future. * On face value of 1,000. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. Past performance is no guarantee of future result. (++ for rating methodology please refer page 4.) 23

26 Principal Short Term Debt Fund (An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years.) Investment Objective: To generate regular income and capital appreciation/ accretion through investment in debt instruments and related securities besides preservation of capital and has been designed to achieve stable returns over shorter-term investment horizons. CARE AAAmfs++ Minimum Investment Amount () New Investor- 5,000 SIP- 2,000 Existing Investor- 1,000 STP- 1,000 RWP installments each Asset Under Managment ( Cr) MAAUM: AUM: Exit Load: NIL & Benchmark Regular Plan: May 09, 2003 Direct Plan: January 1, 2013 Benchmark: CRISIL Short-Term Bond Fund Index Options Both the Plans offer Dividend & Growth Option. Dividend Frequency Monthly : Gurvinder Singh Wasan Managing Since: April 2011 Total Experience: 14 years Month End Quants of the Debt (As on September 30, 2018) Average Maturity: 1.32 years Modified Duration: 1.13 years Gross Yield to Maturity: 8.88% Macaulay Duration: 1.22 years Direct Plan % Regular Plan % Rating % of NAV BONDS & NCD Dewan Housing Finance Corporation Ltd BWR AAA 8.31 Small Industries Development Bank of India CARE AAA 8.09 NTPC Ltd CRISIL AAA 7.81 National Housing Bank 15-Mar-2019 CRISIL AAA 7.57 Rural Electrification Corporation Ltd CRISIL AAA 7.33 JM Financial Products Ltd CRISIL AA 6.86 Avanse Financial Services Ltd CARE AA+ (SO) 6.58 Piramal Enterprises Ltd [ICRA]AA 5.90 IIFL Home Finance Ltd [ICRA]AA 5.49 Indiabulls Housing Finance Ltd BWR AAA 3.26 Reliance Jio Infocomm Ltd CRISIL AAA 2.89 Bharat Petroleum Corporation Ltd CRISIL AAA 1.59 Power Finance Corporation Ltd CRISIL AAA 1.12 HDFC Bank Ltd CRISIL AA National Bank for Agriculture and Rural Development CRISIL AAA 0.99 Piramal Enterprises Ltd [ICRA]AA 0.49 Sovereign % Government of India Sovereign % Government of India Sovereign 1.66 Commercial Paper 7.20 Cox & Kings Ltd. BWR A Tata Steel Ltd. [ICRA]A Cash & Cash Equivalents ^The aggregate investments by other schemes of Principal Mutual Fund as on September 30, 2018: Crore Note: # Total Expense Ratio includes GST on management fees. Composition By Assets (As on Sep 30, 2018) (% of NAV) Rating Profile (As on September 30, 2018) (% of NAV) AAA AA A1+ AA+(SO) Sovereign AA+ Cash & Cash Equivalents BONDS & NCD 75.39% Commercial Paper 7.20% Sovereign 6.56% Cash and Other Assets 10.85% 1.11% 7.20% 6.58% 6.56% 10.85% 18.74% 48.96% 0.00% 20.00% 40.00% 60.00% Dividend Update Principal Short Term Debt Fund CRISIL Short-Term Bond Fund Index Date Regular Plan Direct Plan CRISIL 10 Year Gilt Index 1 Year ( to ) Years ( to ) Years ( to ) Since Inception ( to ) Different plans shall have a different expense structure. The performance details provided herein are of Regular Plan - Growth option. Past performance may or may not be sustained in future. (in %) are calculated on Compounded Annualised Basis (CAGR). $ PTP (Point to Point) are based on standard investment of 10,000/- made at the beginning of relevant period. Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. Dividend (/Unit)* Cum Dividend NAV Dividend (/Unit)* Cum Dividend NAV Monthly Dividend (Last 3 Months) 17-Sep Aug Jul Past performance may or may not be sustained in the future. * On face value of 10. Note: All Dividend (/Unit) figures are Gross Dividend. Pursuant payment of dividend, the NAV of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. Past performance is no guarantee of future result. (++ for rating methodology please refer page 4.) 24