PRODUCT SUITABILITY. Scheme Names This product is suitable for investors who are seeking ~ Product Label Pg. No.

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2 PRODUCT SUITABILITY Scheme Names This product is suitable for investors who are seeking ~ Product Label Pg. No. Principal Large Cap Fund Long term Capital Growth. Investment in equity & equity related securities High Risk (Brown) 8 (An Open-ended Equity Scheme) including equity derivatives of large capitalization Companies Principal Emerging Bluechip Fund Long term Capital Growth. Investment in equity & equity related securities High Risk (Brown) 9 (An Open-ended Equity Scheme) including equity derivatives of mid & small capitalization Companies. Principal Growth Fund Long term Capital Growth. Investment in equity & equity related securities High Risk (Brown) 10 (An Open-ended Equity Scheme) including equity derivatives of companies across market capitalization. Principal Dividend Yield Fund Long term Capital Growth. Investment in equity & equity related securities High Risk (Brown) 11 (An Open-ended Equity Scheme) including equity derivatives of high dividend yield Companies. Principal Index Fund - Nifty Long term Capital Growth. Investment in equity securities High Risk (Brown) 12 (An Open-ended Index Scheme) including equity derivatives of CNX Nifty (NSE) Companies. Principal Index Fund - Midcap Long term Capital Growth. Investment in equity securities High Risk (Brown) 13 (An Open-ended Index Scheme) including equity derivatives of CNX Midcap Index. Principal SMART Equity Fund Long term Capital Growth. Investment in equity & equity related securities High Risk (Brown) 14 (An Open-ended Equity Scheme) including equity derivatives of large capitalization Companies 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 CNX Nifty. Principal Personal Tax Saver Fund Long term Capital Growth with a three year lock-in. High Risk (Brown) 15 (An Open-ended Equity Linked Savings Scheme) Investment in equity & equity related securities including equity derivatives of large capitalization Companies. Principal Tax Savings Fund Long term Capital Growth with a three year lock-in. High Risk (Brown) 16 (An Open-ended Equity Linked Savings Scheme) Investment in equity & equity related securities including equity derivatives of companies across market capitalization. Principal Balanced Fund Income and Long term Capital Growth. Investment in equity & equity Medium Risk (Yellow) 17 (An Open-ended Balanced Scheme) related securities, debt/money market securities as well as derivatives. Principal Debt Savings Fund - MIP Income and Capital Growth over a medium term investment horizon. Medium Risk (Yellow) 18 An Open-ended Income Fund Investment primarily in debt/money market securities with exposure in (Monthly Income is not assured and is subject equity & equity related instruments including equity derivatives. to the availability of distributable surplus) Principal Government Securities Fund Income over a long term investment horizon. Low Risk (Blue) 19 (An Open-ended dedicated Gilt Scheme Investment in Government Securities. investing in Government Securities) Principal Income Fund - Long Term Plan Income over a long term investment horizon. Low Risk (Blue) 20 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. Principal Debt Opportunities Fund - Income over a long term investment horizon. Low Risk (Blue) 21 Corporate Bond Plan Investment in Debt & Money Market Instruments of Private & (An Open-ended Debt Scheme) Public Sector Companies. Principal Income Fund - Short Term Plan Income over a medium term investment horizon. Low Risk (Blue) 22 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. Principal Bank CD Fund Income over a medium term investment horizon. Low Risk (Blue) 23 (An Open-ended Debt Scheme) Investment in Bank CDs, Debt & Money Market Instruments. Principal Debt Opportunities Fund - Income over a short term investment horizon. Low Risk (Blue) 24 Conservative Plan (An Open-ended Debt Scheme) Investment in Debt & Money Market Instruments. Principal Cash Management Fund Income over a short term investment horizon. Investment in Debt & Low Risk (Blue) 25 (An Open-ended Liquid Scheme) Money Market Instruments, with maturity not exceeding 91 days. Principal Global Opportunities Fund Long term Capital Growth. High Risk (Brown) 26 (An Open-ended Fund of Funds Scheme) Investment in overseas mutual fund schemes. Principal Retail Money Manager Fund Income over a short term investment horizon. Low Risk (Blue) 26 (An Open-ended Debt Scheme) Investment in Debt & Money Market Instruments. Principal Debt Savings Fund - Retail Plan Income over a long term investment horizon. Low Risk (Blue) 27 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. ~ Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: Risk may be represented as: Investors understand that their principal will be at Low Risk Investors understand that their principal will be at Medium Risk Investors understand that their principal will be at High Risk (Blue); (Yellow); (Brown)

3 Fund Manager Commentary Debt Markets April 2015 Fixed Income Update for April 2015 Key Market Highlights: In its First Bi Monthly Monetary Policy Statement for FY 16 held on 7th April, RBI kept key rates unchanged as expected. RBI also indicated that going forward monetary policy actions may be conditioned by incoming data. More specifically RBI would look at whether banks are transmitting the rate reductions via cut in their lending rates and also look at movement of food prices and monsoon progress. Bond and G-sec yields went up 5-10 bps across the curve. Rising oil prices, concerns on weather related impact on food prices and resumption of govt s dated g-secs borrowing programme were the main factors. Money market rates fell from March levels on easing liquidity, mutual fund and bank demand for CDs and lower supply. Brent Crude oil prices rose to USD 64.8 as compared to USD in previous month end. INR exhibited weakening trend and closed the month at as compared to in March end. For the month of March, FIIs continue to remain buyers in the debt market with net debt purchases totaling ` 12,450 crore approx. The benchmark ten year g-sec closed the month at 7.86%, 10 bps higher than previous month. The ten year AAA Corporate bond benchmark closed at 8.37%, 2 bps higher than previous month. The five year AAA corporate bond benchmark closed at 8.37%, 2 bps higher as compared to previous month. Mar WPI data release came at -2.33% as compared to -2.06% as in previous month. CPI for March came at 5.17% compared to 5.37% in previous month. Feb industrial production (IIP) growth rose to 5% yoy reflecting some pickup in industrial activity. Liquidity deficit during the month eased and averaged ` 83,000 crore as compared to ` 1,60,000 crore approx in the previous month combined for daily LAF, term LAF and MSF. Overnight rates remained stable around 7.30% -7.70% during the month. Outlook: There could be some near term weakness in prices considering rise in global bond yields and oil prices. Steady supply through govt s primary auction of dated G-secs could also keep prices under pressure. We expect the existing ten year benchmark G-sec to trade in a range of 7.75% to 7.95% during the month. The five year AAA PSU corporate bond benchmark is expected to trade in a range of 8.35 to 8.55%. Banking system liquidity deficit is expected to be lower on account of higher coupon maturities in the range of ` 50,000 crore to 70,000 crore for the month. Short term money market yields upto 3 month maturity are expected to remain range bound barring any unforeseen tightness in liquidity. We expect the 3 month CD rate to trade in range of %. Global bond yields rose by bps across US, UK and Euro area. 1 year CD rates fell by 8 bps to close at 8.39%. 1 year T- bill rate fell 3 bps to close at 7.90%. 3

4 Fund Manager Commentary Equity Markets April 2015 Review of Equity Market for the Month of April 2015 The weakness the equity markets had seen in March continued into April. The second half of the month was particularly bad, with the NSE Nifty falling about 7.5% in the period. Among Emerging markets, India was an outlier, being the second worst performing market with MSCI India (in USD terms), falling 7%, while MSCI EM was up 8%. The underperformance could be attributed to continued weak earnings (and poor earnings visibility), the Met department's forecast of the monsoon likely to be below average, and concerns about the applicability of MAT to certain category of FIIs. The equity markets have rallied in the past 18 months on improved macroeconomic data backed by strong flows from both FIIs and domestic investors. However, the micro level picture for company earnings hasn t yet shown an improvement overall. In fact, EPS estimates for FY16 have been downgraded by nearly 10% between October 2014 and March Consensus earnings forecast for FY 16 is still at about 16%. PERFORMANCE AS ON APRIL 30, 2015* Index 1 Month 3 Months 6 Months 1 Year (%) (%) (%) (%) Broad Markets CNX Nifty Index S&P BSE Sensex S&P BSE S&P BSE S&P BSE S&P BSE Mid Cap S&P BSE Small Cap Sectoral Performance S&P BSE AUTO S&P BSE Bankex S&P BSE CG S&P BSE CD S&P BSE FMCG S&P BSE Metal S&P BSE Oil & Gas S&P BSE PSU S&P BSE Teck S&P BSE HC *Performance for less than one year period are absolute returns and more than one year are compounded annualized returns. Source - MFI Explorer Globally, the risk assets did well in the previous month. However, the situation in Greece again was in the news, with uneven progress in the negotiations, while crude prices (Brent) were up 18% during the month. Like in the previous month, the mid and small caps outperformed the large cap stocks again this month. Among sector indices, the Materials and energy sectors performed well. Metal stocks did well on the back of higher commodity prices. The CRB commodity index was up 8.4% during the month. Despite the move, it is still down 26% over the past year. The IT stocks did poorly as some of the larger names had weak results with weak volume growth and cross currency headwinds impacting earnings. In terms of flows, FIIs continued to be buyers, and bought stock worth USD 1.7 Billion in the cash market (this includes a large block deal for shares of Sun Pharma) though they were sellers in the futures market. The domestic investors were net buyers of about USD 1.2 Billion with insurance companies turning buyers after a long time. The Rupee however, having strongly outperformed last year, was weaker by 1.5% during the month against the US Dollar. In terms of macro news, the inflation numbers remained in control with the CPI at 5.2% and the WPI at (-) 2.3%. India s trade deficit however increased to US$11.8bn in Mar 15 vs US$6.8bn in Feb 15 due to a sharp US$3bn increase in both gold and non-oil-nongold imports. Merchandise exports declined 21% yoy during the month, while for the full year, exports declined 1.2%, reflecting both the impact of a strong currency and weak global economy. Going forward, the actual work being done on the ground would begin to reflect in earnings over the next few quarters. The companies are also making efforts to repair their balance sheets (raising money, selling off assets) which would ultimately enable them to start spending. During the month we bought or added to our positions in Amara Raja Batteries, Ashoka Buildcon, Bajaj Auto, Ceat, Colgate Palmolive, Dr. Reddys Labs, Finolex Cable, Gateway Distriparks, Gujarat State Petronet, ITC, Inox Wind, Kajaria Ceramics, Orient Cement, Sun Pharmaceuticals and Torrent Pharmaceuticals among other stocks. We sold or reduced our positions in Andhra Bank, Aurionpro Solutions, Axis Bank, Britannia Industries, Coromandel International, Cyient, Crompton Greaves, Dewan Housing Finance Corp., Dynamatic Technologies, Jaiprakash Associates, Lupin, National Buildings Construction Corp., NCC, Shivam Autotech, Shree Cement, Sadbhav Engineering, Symphony, Tata Chemicals and Tata Steel among other stocks. 4

5 Funds at a Glance EQUITY SCHEMES Particulars Principal Principal Emerging Principal Principal Principal Principal Large Cap Fund Bluechip Fund Growth Fund Dividend Yield Fund Index Fund - Nifty Index Fund - Midcap Nature of the An Open-ended An Open-ended An Open-ended An Open-ended An Open-ended An Open-ended Scheme Equity Scheme Equity Scheme Equity Scheme Equity Scheme Index Scheme Index Scheme Allotment Date - Regular Plan November 11, 2005 November 12, 2008 October 25, 2000 October 15, 2004 July 27, 1999 May 12, Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 May 12, 2014 Investment Plans / Regular Plan & Direct Plan. Both the Plans offer Growth & Half Yearly Dividend Option. Regular Plan & Direct Plan. Both the Plans offer Options Half Yearly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. Growth & Dividend Option. Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep. Fund Manager & Anupam Tiwari Dhimant Shah P.V.K. Mohan Dhimant Shah Rupali Pandit Rupali Pandit Managing the July 2011 June 2011 September 2010 December 2011 October 2012 May 2014 Current Fund from Total Investment 10 years 23 years 21 years 23 years 19 years 19 years Experience Benchmark S&P BSE 100 Index CNX Midcap Index S&P BSE 200 Index CNX Dividend CNX Nifty Index CNX Midcap Index Opportunities Index Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Cut Off Time# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm Exit Load If redeemed on or before 1 Year from the 1% - If redeemed within If redeemed on or before 1% - if redeemed on or before 90 days (including SIP /STP/ date of allotment - 1% 365 days from the 1 Year from the from the date of allotment; SWP, if available) date of allotment. date of allotment - 1% Nil - if redeemed after 90 days from the Nil - If redeemed after date of allotment. 365 days from the date of allotment. SIP / SWP / STP Available Minimum No. & 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each. Amt. of SIP/SWP/STP (if available) EQUITY SCHEME EQUITY LINKED SAVINGS SCHEME (ELSS)^ TARGET RISK FUNDS Particulars Principal Principal Personal Principal Principal Principal Debt Savings Fund - SMART Equity Fund Tax Saver Fund Tax Savings Fund Balanced Fund Monthly Income Plan Nature of the An Open-ended An Open-ended Equity An Open-ended Equity An Open-ended An Open-ended Income Fund Scheme Equity Scheme Linked Savings Scheme Linked Savings Scheme Balanced Scheme (Monthly Income is not assured and is subject to the availability of distributable surplus) Allotment Date - Regular Plan December 16, 2010 March 31, 1996 March 31, 1996 January 14, 2000 May 23, Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 Investment Plans / Regular Plan & Direct Plan. Regular Plan & Direct Plan. Regular Plan & Direct Plan. Regular Plan and Direct Plan. Regular Plan & Direct Plan. Options Both the Plans offer Growth & Both the Plan do not have Both the Plan do not have Both the Plans offer Growth & Both the Plans offer Half Yearly Dividend Option. any options at present. any options at present. Half Yearly Dividend Option. Dividend & Growth Option. Half Yearly Dividend Option Half Yearly Dividend Option Dividend Frequencies - under both the Plans offers under both the Plan offers Monthly / Quarterly facility of Payout, Reinvestment facility of Payout,Reinvestment and Sweep. and Sweep. Fund Manager & Anupam Tiwari Anupam Tiwari P.V.K. Mohan P.V.K. Mohan Pankaj Jain Managing the July 2011 July 2011 September 2010 May 2010 January 2012 Current Fund from Total Investment 10 years 10 years 21 years 21 years 12 years Experience Benchmark Crisil Balanced Fund Index S&P BSE 100 Index S&P BSE 200 Index Crisil Balanced Fund Index Crisil MIP Blended Index Minimum New Investor: ` 5,000 New Investor: ` 500 New Investor: ` 500 New Investor: ` 5,000 New Investor: ` 5,000 Application Amount Existing Investor: ` 1,000 Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Cut Off Time# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm Exit Load 1% if redeemed Nil Nil If redeemed on or before 1 Year from the (including SIP /STP/ within 1 year from the date of allotment - 1%. SWP, if available) date of allotment. SIP Available SWP / STP Available Available after lock-in period Available Available Minimum No. & 6 installment of 6 installments of ` 500/- each. 6 installment of SIP - ` 2,000/- each, STP - ` 1,000/- each Amt. of SIP/SWP/STP SIP - ` 2,000/- each, & SWP - ` 500/- each. (if available) STP - ` 1,000/- each & SWP - ` 500/- each. # In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing (Net Asset Value) of the day shall be applicable subject to realisation of the funds upto 3.00 p.m. and receipt of application (duly time stamped). ^ Lock-in of 3 years. 5

6 Funds at a Glance (Contd.) DEBT SCHEMES Particulars Principal Government Principal Income Fund - Principal Debt Opportunities Principal Income Fund - Principal Securities Fund Long Term Plan Fund - Corporate Bond Plan Short Term Plan Bank CD Fund Nature of the An Open-ended dedicated An Open-ended An Open-ended An Open-ended An Open-ended Scheme Gilt Scheme investing in Income Scheme Debt Scheme Income Scheme Debt Scheme Government Securities Allotment Date - Regular Plan August 23, 2001 May 09, 2003 September 14, 2004 May 09, 2003 November 6, Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 Investment Plans / Options Regular Plan and Direct Plan. Both the Plans offer Dividend & Growth Option. Dividend Frequencies Quarterly / Annual Quarterly / Annual Monthly Monthly Monthly Fund Manager & Bekxy Kuriakose Bekxy Kuriakose Bekxy Kuriakose Gurvinder Singh Wasan Gurvinder Singh Wasan Managing the October 2012 Janaury 2013 Janaury 2013 April 2011 April 2011 Current Fund from Total Investment 14 years 14 years 14 years 11 years 11 years Experience Benchmark I-Sec Composite Index Crisil Composite Bond Crisil Liquid Fund Index CRISIL Short-Term Bond Crisil Liquid Fund Index Fund Index Fund Index Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Cut Off Time Subscription # 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm Redemption 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm Exit Load Nil If redeemed on or 0.50% - if redeemed on or If redeemed within 1% - if redeemed within 180 (including SIP /STP/ before 1 Year from the before 90 days from the 30 days from the days from the date of allotment; SWP, if available) date of allotment - 1%. date of allotment; date of allotment % 0.50% - if redeemed after Nil - if redeemed after 90 days from the date of allotment. 180 days but within 270 days from the date of allotment; 0.25% - if redeemed after 270 days but within 365 days from the date of allotment; Nil - if redeemed after 365 days from the date of allotment. SIP / SWP / STP Minimum number & Amount of SIP/ SWP/STP (if available) Available 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each. # In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing (Net Asset Value) of the day shall be applicable subject to realisation of the funds upto 3.00 p.m. and receipt of application (duly time stamped). 6

7 Funds at a Glance (Contd.) DEBT SCHEMES LIQUID SCHEME* RETAIL SCHEMES Particulars Principal Debt Opportunities Principal Principal Retail Principal Debt Savings Principal Global Fund - Conservative Plan Cash Management Fund Money Manager Fund ~ Fund - Retail Plan ~ Opportunities Fund Nature of the An Open-ended Debt Scheme An Open-ended Liquid Scheme An Open-ended Debt Scheme An Open-ended Income Fund An Open-ended Scheme Fund of Funds Scheme Allotment Date - Regular Plan September 14, 2004 August 30, 2004 December 28, 2007 December 30, 2003 March 29, Direct Plan January 2, 2013 January 1, 2013 January 1, 2013 January 2, 2013 January 2, 2013 Investment Plans/ Regular Plan and Direct Plan. Regular Plan and Direct Plan. Growth & Dividend Regular Plan and Direct Plan. Regular Plan & Direct Plan. Options/ Both the Plans offer Both the Plans offer Both the Plans offer Both the Plans offer Both the Plans offer Dividend & Growth Option. Dividend & Growth Option. Dividend & Growth Option. Dividend ~ and Growth Option. Growth & Dividend Option. Dividend Frequencies Dividend Frequency - Dividend Frequency - Dividend Frequency - Dividend Frequency - Dividend Option under both Daily / Weekly / Monthly Daily / Weekly / Monthly Regular Plan ~ : Monthly / Quarterly the Plan offers facility of Daily / Weekly / Monthly. Payout, Reinvestment and Direct Plan: Monthly Sweep. (Reinvestment) Fund Manager & Pankaj Jain Pankaj Jain Pankaj Jain Pankaj Jain Rajat Jain Managing the January 2012 January 2012 January 2012 January 2012 March 2004 Current Fund from Total Investment 12 years 12 years 12 years 12 years 25 years Experience Benchmark Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Short Term MSCI World Index Bond Fund Index Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 10,000 Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Cut Off Time Subscription # 3.00 pm 2.00 pm 3.00 pm 3.00 pm pm Redemption 3.00 pm 3.00 pm 3.00 pm 3.00 pm pm FUND OF FUNDS SCHEME Exit Load Nil Nil Nil If redeemed on or before If redeemed on or before (including SIP /STP/ 30 days from the 1 Year from the SWP, if available) date of allotment - 1%. date of allotment - 1%. SIP / SWP / STP Minimum number & Amount of SIP/ SWP/STP (if available) Available 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each. * In respect of Liquid Scheme(s) 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). # In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing (Net Asset Value) of the day shall be applicable subject to realisation of the funds upto 3.00 p.m. and receipt of application (duly time stamped). ~ Subscriptions (by way of purchase / switch in or in any mode) is restricted only for individual investors (including HUFs, Association of Persons & where an individual is an ultimate beneficiary). Further, (a) Daily & Weekly Dividend Option and the Payout & Sweep facility to Monthly Dividend Option under Regular Plan of Principal Retail Money Manager Fund and (b) Dividend Option under Regular Plan of Principal Debt Savings Fund - Retail Plan. Direct Plan under the Scheme do not offer this Options. 7

8 Principal Large Cap Fund (An open-ended equity scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` INVESTMENT OBJECTIVE To provide capital appreciation and /or dividend distribution by predominantly investing in companies having a large market capitalization. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, June 24, N.A. N.A. July 28, N.A. N.A. February 5, N.A. N.A. May 15, 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. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 15.05% Beta^ 0.95 Sharpe Ratio^ (Annualised) 0.81 Portfolio Turnover Ratio** 0.70 Expense Ratio (Regular Plan) #+ 2.49% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. MARKET CAP ALLOCATION (As on April 30, 2015) % of Equity & Equity Related Instruments of Large Cap Companies Equity & Equity Related Instruments of Mid Cap & Other Companies 0.61 Mutual Funds 2.48 Cash and Other Assets 0.04 Instrument Industry % of Equity Tata Motors Auto 5.72 Infosys Software 5.40 HDFC Bank Banks 5.11 ICICI Bank Banks 4.67 Axis Bank Banks 4.32 ITC Consumer Non Durables 4.12 Housing Development Finance Corpn. Finance 3.89 Larsen & Toubro Construction Project 3.64 Shree Cements Cement 3.44 Divi's Laboratories Pharmaceuticals 3.43 Maruti Suzuki India Auto 3.33 HCL Technologies Software 3.00 Tech Mahindra Software 2.97 Britannia Industries Consumer Non Durables 2.47 Reliance Industries Petroleum Products 2.45 Motherson Sumi Systems Auto Ancillaries 2.39 Bharat Petroleum Corporation Petroleum Products 2.32 Sun Pharmaceuticals Industries Pharmaceuticals 2.17 IndusInd Bank Banks 2.01 Yes Bank Banks 1.94 Abbott India Pharmaceuticals 1.67 Indraprastha Gas Gas 1.66 Adani Ports and Special Economic Zone Transportation 1.64 Tata Consultancy Services Software 1.62 Kotak Mahindra Bank Banks 1.59 State Bank of India Banks 1.41 Colgate Palmolive (India) Consumer Non Durables 1.36 UltraTech Cement Cement 1.35 Asian Paints Consumer Non Durables 1.33 The Federal Bank Banks 1.29 IDFC Finance 1.21 Aditya Birla Nuvo Services 1.19 Hexaware Technologies Software 1.10 National Aluminium Company Non - Ferrous Metals 1.10 Dish TV India Media & Entertainment 1.05 Tata Communications Telecom - Services 0.97 Century Textiles & Industries Cement 0.96 Bajaj Auto Auto 0.95 Dr. Reddy's Laboratories Pharmaceuticals 0.94 D.B.Corp Media & Entertainment 0.86 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.84 Tata Motors - A Class Auto 0.78 Kaveri Seed Company Consumer Non Durables 0.69 Birla Corporation Cement 0.61 Nestle India Consumer Non Durables 0.47 Tata Motors - Rights Auto 0.04 Tata Motors - A Class - Rights Auto 0.01 Fixed Deposits 0.32 CitiBank Unrated 0.32 Investment Funds/Mutual Funds 2.48 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 2.48 Cash and Other Assets SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 22.34% Software 14.09% Auto Consumer Non Durables 10.83% 10.44% Pharmaceuticals Cement Finance Petroleum Products Construction Project Auto Ancillaries 8.21% 6.36% 5.10% 4.77% 3.64% 2.39% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 8

9 Principal Emerging Bluechip Fund (An open-ended equity scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` INVESTMENT OBJECTIVE: To achieve long-term capital appreciation by investing in equity & equity related instruments of Mid Cap & Small Cap companies. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, October 15, N.A. N.A. June 19, 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. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 17.78% Beta^ 0.86 Sharpe Ratio^ (Annualised) 1.35 Portfolio Turnover Ratio** 0.67 Expense Ratio (Regular Plan) #+ 2.43% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. MARKET CAP ALLOCATION (As on April 30, 2015) % of Equity and equity related instruments of Mid Cap Companies Equity and equity related instruments of Small Cap Companies 6.99 Equity and equity related instruments of Companies other than Mid & Small Cap 4.90 Cash and Money Market / Fixed Income Securities (including MIBOR Linked Short Term Papers & Securitised Debt) 0.07 Mutual Funds 2.29 Derivatives 0.37 Market Cap Range for CNX Midcap Stocks As on Mar. 31, 2015 ` 86, Cr ` 3, Crs Instrument Industry % of Equity Eicher Motors Auto 3.87 Motherson Sumi Systems Auto Ancillaries 3.40 Aurobindo Pharma Pharmaceuticals 3.21 ICICI Bank Banks 2.97 Yes Bank Banks 2.96 Amara Raja Batteries Auto Ancillaries 2.94 Tech Mahindra Software 2.79 The Federal Bank Banks 2.49 Shree Cements Cement 2.49 Sadbhav Engineering Construction Project 2.47 Bharat Forge Industrial Products 2.46 UPL Pesticides 2.42 Gateway Distriparks Transportation 2.40 IndusInd Bank Banks 2.38 Hindustan Petroleum Corporation Petroleum Products 2.21 Britannia Industries Consumer Non Durables 2.19 Kaveri Seed Company Consumer Non Durables 2.13 Glenmark Pharmaceuticals Pharmaceuticals 1.96 Divi's Laboratories Pharmaceuticals 1.95 Symphony Consumer Durables 1.84 SRF Textile Products 1.64 Orient Cement Cement 1.60 AIA Engineering Industrial Products 1.60 Cummins India Industrial Products 1.60 MRF Auto Ancillaries 1.56 Ramkrishna Forgings Industrial Products 1.55 Kotak Mahindra Bank Banks 1.54 Indiabulls Housing Finance Finance 1.53 Power Finance Corporation Finance 1.48 JK Cement Cement 1.43 Finolex Cables Industrial Products 1.42 Aditya Birla Nuvo Services 1.41 Kalpataru Power Transmission Power 1.39 Torrent Pharmaceuticals Pharmaceuticals 1.34 Dynamatic Technologies Auto Ancillaries 1.28 Tata Chemicals Chemicals 1.20 SKS Microfinance Finance 1.20 Voltas Construction Project 1.17 Pidilite Industries Chemicals 1.14 Lupin Pharmaceuticals 1.13 Gujarat State Petronet Gas 1.11 Inox Wind Industrial Capital Goods 1.11 Tata Communications Telecom - Services 1.07 National Buildings Construction Corpn. Construction 1.07 CESC Power 1.06 Atul Chemicals 1.02 Cyient Software 1.00 Arvind Textile Products 0.98 Transport Corporation of India Transportation 0.96 Mold-Tek Packaging Industrial Products 0.95 Bata India Consumer Durables 0.94 Karur Vysya Bank Banks 0.91 D.B.Corp Media & Entertainment 0.85 Supreme Infrastructure India Construction Project 0.80 Hindustan Zinc Non - Ferrous Metals 0.79 Ashoka Buildcon Construction Project 0.74 Kajaria Ceramics Construction 0.74 Texmaco Rail & Engineering Industrial Capital Goods 0.71 State Bank of India Banks 0.39 Century Textiles & Industries Cement 0.33 Derivatives 0.37 State Bank of India Apr 2015 Stock Futures 0.37 Investment Funds/Mutual Funds 2.29 Principal Cash Management Fund - Direct Plan- Growth Option Mutual Funds 1.61 Principal Index Fund - Midcap - Direct Plan - Growth Mutual Funds 0.68 Cash and Other Assets 0.07 SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 13.64% Pharmaceuticals Industrial Products Auto Ancillaries 9.59% 9.58% 9.18% Cement Construction Project Consumer Non Durables Finance Auto Software 5.85% 5.18% 4.32% 4.21% 3.87% 3.79% 0.00% 4.00% 8.00% 12.00% 16.00% (% of ) 9

10 Principal Growth Fund (An open-ended equity scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` INVESTMENT OBJECTIVE: To achieve long-term capital appreciation. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, December 31, N.A. N.A. March 20, 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. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 17.17% Beta^ 1.07 Sharpe Ratio^ (Annualised) 0.95 Portfolio Turnover Ratio** 0.86 Expense Ratio (Regular Plan) #+ 2.48% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. Instrument Industry % of Equity ICICI Bank Banks 5.05 State Bank of India Banks 3.56 Maruti Suzuki India Auto 2.89 Axis Bank Banks 2.73 Dewan Housing Finance Corporation Finance 2.63 HDFC Bank Banks 2.61 Infosys Software 2.61 HCL Technologies Software 2.56 UPL Pesticides 2.47 Tata Motors Auto 2.44 Housing Development Finance Corpn. Finance 2.37 ITC Consumer Non Durables 2.19 Tata Communications Telecom - Services 2.13 PC Jeweller Consumer Durables 2.13 The Federal Bank Banks 2.12 JK Cement Cement 2.09 Aurobindo Pharma Pharmaceuticals 2.07 Britannia Industries Consumer Non Durables 2.01 Reliance Industries Petroleum Products 2.00 Tata Motors - A Class Auto 1.89 Tata Consultancy Services Software 1.85 Power Finance Corporation Finance 1.77 Motherson Sumi Systems Auto Ancillaries 1.68 Tech Mahindra Software 1.63 Bharat Forge Industrial Products 1.59 Ashoka Buildcon Construction Project 1.55 Cipla Pharmaceuticals 1.47 Century Textiles & Industries Cement 1.38 Firstsource Solutions Software 1.29 The India Cements Cement 1.28 UltraTech Cement Cement 1.28 National Aluminium Company Non - Ferrous Metals 1.26 Larsen & Toubro Construction Project 1.26 Abbott India Pharmaceuticals 1.25 Hindustan Construction Company Construction Project 1.18 Bharat Petroleum Corporation Petroleum Products 1.14 Indraprastha Gas Gas 1.09 Lupin Pharmaceuticals 1.08 The Ramco Cements Cement 1.08 Kalpataru Power Transmission Power 1.08 KEC International Construction Project 1.07 CEAT Auto Ancillaries 1.06 Jain Irrigation Systems Industrial Products 1.06 Sesa Sterlite Non - Ferrous Metals 1.06 Bank of Baroda Banks 1.05 Prestige Estates Projects Construction 1.04 Yes Bank Banks 1.03 Dish TV India Media & Entertainment 1.00 Aditya Birla Nuvo Services 0.99 Bajaj Auto Auto 0.99 Bombay Burmah Trading Corporation Consumer Non Durables 0.99 Hindustan Petroleum Corporation Petroleum Products 0.98 Cyient Software 0.97 IRB Infrastructure Developers Construction 0.93 United Spirits Consumer Non Durables 0.92 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.91 RattanIndia Power Power 0.76 Hindustan Zinc Non - Ferrous Metals 0.73 SRF Textile Products 0.67 KPIT Technologies Software 0.51 Crompton Greaves Industrial Capital Goods 0.50 Mile Stone Global Construction 0.02 Tata Motors - Rights Auto 0.02 Tata Motors - A Class - Rights Auto 0.01 Fixed Deposit 0.21 CitiBank Unrated 0.21 Investment Funds/Mutual Funds 2.88 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 1.93 Principal Index Fund - Midcap - Direct Plan - Growth Mutual Funds 0.95 Cash and Other Assets SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 18.15% Software 11.42% Auto Cement Finance Consumer Non Durables Pharmaceuticals Construction Project Petroleum Products Non - Ferrous Metals 8.24% 7.11% 6.77% 6.11% 5.87% 5.06% 4.12% 3.05% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 10

11 Principal Dividend Yield Fund (An open-ended equity scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` 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. DIVIDEND UPDATE (REGULAR PLAN) Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, October 12, N.A. N.A. April 24, N.A. N.A. October 3, N.A. N.A. April 20, N.A. N.A. * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 16.71% Beta^ 0.85 Sharpe Ratio^ (Annualised) 0.49 Portfolio Turnover Ratio** 0.49 Expense Ratio (Regular Plan) #+ 2.64% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. Instrument Industry % of Equity ICICI Bank Banks 5.48 Hero MotoCorp Auto 4.72 Hindustan Unilever Consumer Non Durables 4.47 State Bank of India Banks 4.39 Colgate Palmolive (India) Consumer Non Durables 3.88 Oil & Natural Gas Corporation Oil 3.82 Tata Motors - A Class Auto 3.36 Tech Mahindra Software 2.99 Bajaj Holdings & Investment Finance 2.91 SML Isuzu Auto 2.85 Maruti Suzuki India Auto 2.72 Cummins India Industrial Products 2.69 Century Textiles & Industries Cement 2.54 Gateway Distriparks Transportation 2.52 HCL Technologies Software 2.49 Hindustan Petroleum Corporation Petroleum Products 2.45 HDFC Bank Banks 2.41 Bajaj Auto Auto 2.33 Bharat Petroleum Corporation Petroleum Products 2.32 The Federal Bank Banks 2.22 Rural Electrification Corporation Finance 2.11 Castrol India Petroleum Products 2.06 Bank of Baroda Banks 1.99 Power Finance Corporation Finance 1.97 VST Industries Consumer Non Durables 1.84 Tata Consultancy Services Software 1.69 Gujarat State Petronet Gas 1.66 IDFC Finance 1.58 ACC Cement 1.44 Welspun India Textile Products 1.44 PI Industries Pesticides 1.41 ITC Consumer Non Durables 1.28 Aurobindo Pharma Pharmaceuticals 1.21 KEC International Construction Project 1.18 Cyient Software 1.13 Karur Vysya Bank Banks 1.12 National Buildings Construction Corpn. Construction 1.11 Kolte - Patil Developers Construction 1.06 Dewan Housing Finance Corporation Finance 1.05 Shivam Autotech Auto Ancillaries 1.03 Reliance Industries Petroleum Products 1.03 D.B. Corp Media & Entertainment 0.98 Hindustan Zinc Non - Ferrous Metals 0.96 Tata Chemicals Chemicals 0.93 IndusInd Bank Banks 0.87 Sun Pharmaceuticals Industries Pharmaceuticals 0.64 Coal India Minerals/Mining 0.22 Tata Motors - A Class - Rights Auto 0.03 Derivatives 0.19 Coal India May 2015 Stock Futures 0.19 Fixed Deposit 0.18 CitiBank Unrated 0.18 Cash and Other Assets 1.05 SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 18.48% Auto 16.01% Consumer Non Durables 11.47% Finance Software Petroleum Products 9.62% 8.30% 7.86% Cement Oil Industrial Products Transportation 3.98% 3.82% 2.69% 2.52% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 11

12 Principal Index Fund - Nifty (An open-ended index scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option : ` ` INVESTMENT OBJECTIVE To invest principally in securities that comprise CNX Nifty (NSE) and subject to tracking errors endeavour to attain results commensurate with the Nifty. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend December 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 14.56% Beta^ 0.99 Sharpe Ratio^ (Annualised) 0.62 Portfolio Turnover Ratio** 0.29 Expense Ratio (Regular Plan) #+ 0.99% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. TRACKING DEVIATION 0.41%* * Trailing 12 months ended April 30, 2015 (Annualized). Instrument Industry % of Equity Infosys Software 6.75 HDFC Bank Banks 6.69 ICICI Bank Banks 6.68 Housing Development Finance Corpn. Finance 6.41 ITC Consumer Non Durables 6.28 Reliance Industries Petroleum Products 4.95 Larsen & Toubro Construction Project 4.64 Tata Consultancy Services Software 4.38 Axis Bank Banks 3.36 Tata Motors Auto 3.22 State Bank of India Banks 2.90 Sun Pharmaceuticals Industries Pharmaceuticals 2.86 Kotak Mahindra Bank Banks 2.37 Hindustan Unilever Consumer Non Durables 2.10 Oil & Natural Gas Corporation Oil 1.90 Mahindra & Mahindra Auto 1.84 Bharti Airtel Telecom - Services 1.84 Maruti Suzuki India Auto 1.71 HCL Technologies Software 1.66 Coal India Minerals/Mining 1.62 Lupin Pharmaceuticals 1.48 Dr. Reddy's Laboratories Pharmaceuticals 1.46 Tech Mahindra Software 1.31 IndusInd Bank Banks 1.24 Wipro Software 1.23 Asian Paints Consumer Non Durables 1.20 Cipla Pharmaceuticals 1.12 Power Grid Corporation of India Power 1.09 NTPC Power 1.08 Hero MotoCorp Auto 0.97 UltraTech Cement Cement 0.95 Yes Bank Banks 0.95 Bajaj Auto Auto 0.91 Tata Steel Ferrous Metals 0.84 Sesa Sterlite Non - Ferrous Metals 0.80 Grasim Industries Cement 0.79 IDFC Finance 0.78 Bharat Heavy Electricals Industrial Capital Goods 0.75 Bharat Petroleum Corporation Petroleum Products 0.69 Idea Cellular Telecom - Services 0.68 Ambuja Cements Cement 0.62 Zee Entertainment Enterprises Media & Entertainment 0.59 GAIL (India) Gas 0.58 Hindalco Industries Non - Ferrous Metals 0.58 Bank of Baroda Banks 0.55 Tata Power Company Power 0.48 ACC Cement 0.47 Cairn India Oil 0.42 Punjab National Bank Banks 0.41 NMDC Minerals/Mining 0.35 Tata Motors - Rights Auto 0.02 Bonds & NCDs 0.07 NTPC AAA 0.07 Fixed Deposit 0.12 CitiBank Unrated 0.12 Cash and Other Assets 0.26 SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 25.15% Software 15.33% Consumer Non Durables Auto Finance Pharmaceuticals Petroleum Products Construction Project Cement Power 9.58% 8.67% 7.19% 6.92% 5.64% 4.64% 2.83% 2.65% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% (% of ) 12

13 Principal Index Fund - Midcap (An open-ended index scheme) Reliance Infrastructure Power 0.93 The Indian Hotels Company Hotels, Resorts & QAAUM (For the period January to March 2015): ` crore Other Recreational Activities 0.91 Canara Bank Banks 0.89 per unit (As on April 30, 2015) Max India Finance 0.89 Direct Plan Regular Plan Petronet LNG Gas 0.86 Growth Option : ` ` Jubilant Foodworks Consumer Non Durables 0.83 Dividend Option : ` ` Jindal Steel & Power Ferrous Metals 0.82 SKS Microfinance Finance 0.82 INVESTMENT OBJECTIVE Apollo Tyres Auto Ancillaries 0.81 To invest principally in securities that comprise CNX Midcap Index and subject to tracking Bank of India Banks 0.79 errors endevour to attain results commensurate with the CNX Midcap Index. JSW Energy Power 0.77 RATIOS & OTHER DETAILS (As on April 30, 2015) Portfolio Turnover Ratio** 0.72 Reliance Capital TVS Motor Company Finance Auto CRISIL Strides Arcolab Finance Pharmaceuticals Expense Ratio (Regular Plan) #+ 0.99% IPCA Laboratories Pharmaceuticals 0.72 ** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases made The Ramco Cements Cement 0.69 during the 12 month rolling year/period divided by the 12 month rolling year/period Average Thermax Industrial Capital Goods 0.69 asset under Management for the relevant year/period. Century Textiles & Industries Cement 0.67 # Calculated as year to date ratio to average AUM. Reliance Power Power Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. Hindustan Zinc Non - Ferrous Metals 0.65 and no commission for distribution of Units will be paid / charged under the Direct Plan. Kansai Nerolac Paints Consumer Non Durables 0.61 CESC Power 0.61 Wockhardt Pharmaceuticals 0.60 Instrument Industry % of Union Bank of India Banks 0.60 Equity The Great Eastern Shipping Company Transportation 0.59 Bharat Forge Industrial Products 2.57 Dewan Housing Finance Corporation Finance 0.58 Motherson Sumi Systems Auto Ancillaries 2.53 IRB Infrastructure Developers Construction 0.57 Indiabulls Housing Finance Finance 2.51 Gujarat State Petronet Gas 0.57 Eicher Motors Auto 2.49 Sun TV Network Media & Entertainment 0.56 UPL Pesticides 2.44 Biocon Pharmaceuticals 0.55 Britannia Industries Consumer Non Durables 2.14 MphasiS Software 0.54 Glenmark Pharmaceuticals Pharmaceuticals 2.06 The South Indian Bank Banks 0.54 Container Corporation of India Transportation 2.02 Tata Communications Telecom - Services 0.51 Siemens Industrial Capital Goods 2.00 Bata India Consumer Durables 0.51 Divi's Laboratories Pharmaceuticals 1.81 NHPC Power 0.51 Hindustan Petroleum Corporation Petroleum Products 1.71 Godrej Industries Consumer Non Durables 0.50 Ashok Leyland Auto 1.62 Jaiprakash Associates Cement 0.50 Marico Consumer Non Durables 1.62 Sanofi India Pharmaceuticals 0.50 Power Finance Corporation Finance 1.57 Indraprastha Gas Gas 0.48 MRF Auto Ancillaries 1.57 IDBI Bank Banks 0.46 Indian Oil Corporation Petroleum Products 1.48 GMR Infrastructure Construction Project 0.45 Shree Cements Cement 1.46 Torrent Power Power 0.45 Cadila Healthcare Pharmaceuticals 1.45 Just Dial Software 0.45 Pidilite Industries Chemicals 1.45 L&T Finance Holdings Finance 0.45 Apollo Hospitals Enterprise Healthcare Services 1.43 Oriental Bank of Commerce Banks 0.41 Bajaj Finserv Finance 1.41 The Karnataka Bank Banks 0.39 Aditya Birla Nuvo Services 1.40 Allahabad Bank Banks 0.38 Exide Industries Auto Ancillaries 1.30 IFCI Finance 0.38 Piramal Enterprises Pharmaceuticals 1.26 Unitech Construction 0.37 Tata Chemicals Chemicals 1.24 The Jammu & Kashmir Bank Banks 0.36 Mahindra & Mahindra Financial Services Finance 1.21 Syndicate Bank Banks 0.33 GlaxoSmithKline Consumer Healthcare Consumer Non Durables 1.20 Jain Irrigation Systems Industrial Products 0.30 Steel Authority of India Ferrous Metals 1.18 KPIT Technologies Software 0.27 Oracle Financial Services Software Software 1.18 Cash and Other Assets 0.52 ABB India Industrial Capital Goods 1.17 Bajaj Finance MindTree Finance Software Crompton Greaves Havells India Industrial Capital Goods Consumer Durables SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Finance 12.52% Procter & Gamble Hygiene and Health Care Consumer Non Durables 1.08 Consumer Non Durables 10.89% Amara Raja Batteries Auto Ancillaries 1.07 Pharmaceuticals 10.64% Voltas Construction Project 1.07 Auto Ancillaries 7.28% Oil India Oil 1.07 Banks 6.09% Reliance Communications Telecom - Services 1.04 Industrial Capital Goods 6.03% United Breweries Consumer Non Durables 1.02 Auto 4.86% Bharat Electronics Industrial Capital Goods 1.02 Power 3.93% DLF Construction 1.01 Software 3.56% Torrent Pharmaceuticals Pharmaceuticals 0.96 Emami Consumer Non Durables 0.95 Cement 3.32% Karur Vysya Bank Banks % 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Tata Global Beverages Consumer Non Durables 0.94 (% of ) 13

14 Principal SMART Equity Fund (An open-ended equity scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` 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 Earning 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 debt and/or money market instruments and vice versa. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 12.30% Beta^ 1.10 Sharpe Ratio^ (Annualised) 0.81 Portfolio Turnover Ratio** 0.77 Expense Ratio (Regular Plan) #+ 2.60% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. Instrument Industry/ % of % of Rating Derivatives Equity Tata Motors Auto 2.54 Infosys Software 2.40 HDFC Bank Banks 2.28 ICICI Bank Banks 2.07 Axis Bank Banks 1.92 ITC Consumer Non Durables 1.83 Housing Development Finance Corpn. Finance 1.73 Larsen & Toubro Construction Project 1.61 Shree Cements Cement 1.53 Divi's Laboratories Pharmaceuticals 1.52 Maruti Suzuki India Auto 1.48 HCL Technologies Software 1.33 Tech Mahindra Software 1.32 Britannia Industries Consumer Non Durables 1.10 Reliance Industries Petroleum Products 1.09 Motherson Sumi Systems Auto Ancillaries 1.06 Bharat Petroleum Corporation Petroleum Products 1.03 Sun Pharmaceuticals Industries Pharmaceuticals 0.96 IndusInd Bank Banks 0.89 Yes Bank Banks 0.86 Abbott India Pharmaceuticals 0.74 Indraprastha Gas Gas 0.74 Adani Ports and Special Economic Zone Transportation 0.73 Tata Consultancy Services Software 0.72 Kotak Mahindra Bank Banks 0.71 State Bank of India Banks 0.62 Colgate Palmolive (India) Consumer Non Durables 0.60 UltraTech Cement Cement 0.60 Asian Paints Consumer Non Durables 0.59 The Federal Bank Banks 0.57 IDFC Finance 0.54 Aditya Birla Nuvo Services 0.53 National Aluminium Company Non - Ferrous Metals 0.49 Hexaware Technologies Software 0.49 Dish TV India Media & Entertainment 0.46 Tata Communications Telecom - Services 0.43 Century Textiles & Industries Cement 0.43 Bajaj Auto Auto 0.42 Dr. Reddy's Laboratories Pharmaceuticals 0.42 D.B. Corp Media & Entertainment 0.38 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.37 Tata Motors - A Class Auto 0.35 Kaveri Seed Company Consumer Non Durables 0.31 Birla Corporation Cement 0.27 Nestle India Consumer Non Durables 0.21 Tata Motors - Rights Auto 0.02 Cash Future Arbitrage Tata Steel Ferrous Metals 0.77 Tata Steel May 2015 Stock Futures Tata Consultancy Services Software 1.35 Tata Consultancy Services May 2015 Stock Futures Hindustan Petroleum Corpn. Petroleum Products 1.45 Hindustan Petroleum Corpn. May 2015 Stock Futures State Bank of India Banks 2.17 State Bank of India May 2015 Stock Futures Power Grid Corporation of India Power 4.32 Power Grid Corpn. of India May 2015 Stock Futures Maruti Suzuki India Auto 4.67 Maruti Suzuki India May 2015 Stock Futures HDFC Bank Banks 6.68 HDFC Bank May 2015 Stock Futures Lupin Pharmaceuticals 7.64 Lupin May 2015 Stock Futures Reliance Industries Petroleum Products 7.80 Reliance Industries May 2015 Stock Futures Commercial Paper 7.70 Edelweiss Financial Services A Fixed Deposit 0.14 CitiBank Unrated 0.14 Investment Funds/Mutual Funds 5.15 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 5.15 Cash and Other Assets 6.87 SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on April 30, 2015) Banks Software Auto Consumer Non Durables Pharmaceuticals Cement Finance Petroleum Products Construction Project Auto Ancillaries 4.81% 4.64% 3.64% 2.83% 2.27% 2.12% 1.61% 1.06% 6.26% 9.93% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% (% of ) The chart represents the unhedged equitys positions only. 14

15 Principal Personal Tax Saver Fund (An open-ended equity linked savings scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan : ` Regular Plan : ` 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 S&P BSE 100 Index. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend March 25, February 26, December 31, October 30, March 13, November 2, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 15.10% Beta^ 0.96 Sharpe Ratio^ (Annualised) 0.82 Portfolio Turnover Ratio** 0.70 Expense Ratio (Regular Plan) #+ 2.48% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. Instrument Industry % of Equity Tata Motors Auto 5.75 Infosys Software 5.44 HDFC Bank Banks 5.14 ICICI Bank Banks 4.70 Axis Bank Banks 4.34 ITC Consumer Non Durables 4.15 Housing Development Finance Corporation Finance 3.91 Larsen & Toubro Construction Project 3.66 Shree Cements Cement 3.47 Divi's Laboratories Pharmaceuticals 3.45 Maruti Suzuki India Auto 3.36 HCL Technologies Software 3.02 Tech Mahindra Software 2.98 Britannia Industries Consumer Non Durables 2.48 Reliance Industries Petroleum Products 2.46 Motherson Sumi Systems Auto Ancillaries 2.40 Bharat Petroleum Corporation Petroleum Products 2.34 Sun Pharmaceuticals Industries Pharmaceuticals 2.18 IndusInd Bank Banks 2.02 Yes Bank Banks 1.95 Abbott India Pharmaceuticals 1.68 Indraprastha Gas Gas 1.67 Adani Ports and Special Economic Zone Transportation 1.65 Tata Consultancy Services Software 1.64 Kotak Mahindra Bank Banks 1.63 State Bank of India Banks 1.42 Colgate Palmolive (India) Consumer Non Durables 1.36 UltraTech Cement Cement 1.36 Asian Paints Consumer Non Durables 1.33 The Federal Bank Banks 1.30 IDFC Finance 1.21 Aditya Birla Nuvo Services 1.20 Hexaware Technologies Software 1.11 National Aluminium Company Non - Ferrous Metals 1.11 Dish TV India Media & Entertainment 1.06 Tata Communications Telecom - Services 0.98 Century Textiles & Industries Cement 0.96 Bajaj Auto Auto 0.96 Dr. Reddy's Laboratories Pharmaceuticals 0.95 D.B. Corp Media & Entertainment 0.86 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.85 Tata Motors - A Class Auto 0.79 Kaveri Seed Company Consumer Non Durables 0.69 Birla Corporation Cement 0.61 Nestle India Consumer Non Durables 0.48 Tata Motors - Rights Auto 0.04 Tata Motors - A Class - Rights Auto 0.01 Fixed Deposit 0.32 CitiBank Unrated 0.32 Investment Funds/Mutual Funds 2.02 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 2.02 Cash and Other Assets SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks Software Auto Consumer Non Durables Pharmaceuticals Cement Finance Petroleum Products Construction Project Auto Ancillaries 10.91% 10.49% 8.26% 6.40% 5.12% 4.80% 3.66% 2.40% 14.19% 22.50% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 15

16 Principal Tax Savings Fund (An open-ended equity linked savings scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan : ` Regular Plan : ` 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. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend November 30, January 15, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 17.20% Beta^ 1.08 Sharpe Ratio^ (Annualised) 0.96 Portfolio Turnover Ratio** 0.89 Expense Ratio (Regular Plan) #+ 2.52% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. Instrument Industry % of Equity ICICI Bank Banks 5.16 State Bank of India Banks 3.64 Maruti Suzuki India Auto 2.90 Axis Bank Banks 2.79 Dewan Housing Finance Corporation Finance 2.67 HDFC Bank Banks 2.67 Infosys Software 2.67 HCL Technologies Software 2.62 UPL Pesticides 2.50 Tata Motors Auto 2.49 Housing Development Finance Corpn. Finance 2.42 ITC Consumer Non Durables 2.24 Tata Communications Telecom - Services 2.18 The Federal Bank Banks 2.17 PC Jeweller Consumer Durables 2.15 JK Cement Cement 2.14 Aurobindo Pharma Pharmaceuticals 2.08 Reliance Industries Petroleum Products 2.05 Britannia Industries Consumer Non Durables 2.03 Tata Motors - A Class Auto 1.93 Tata Consultancy Services Software 1.84 Power Finance Corporation Finance 1.81 Motherson Sumi Systems Auto Ancillaries 1.72 Tech Mahindra Software 1.66 Bharat Forge Industrial Products 1.59 Ashoka Buildcon Construction Project 1.57 Cipla Pharmaceuticals 1.50 Century Textiles & Industries Cement 1.41 Firstsource Solutions Software 1.32 The India Cements Cement 1.31 UltraTech Cement Cement 1.30 National Aluminium Company Non - Ferrous Metals 1.29 Larsen & Toubro Construction Project 1.28 Abbott India Pharmaceuticals 1.28 Hindustan Construction Company Construction Project 1.20 Bharat Petroleum Corporation Petroleum Products 1.17 Indraprastha Gas Gas 1.11 The Ramco Cements Cement 1.11 KEC International Construction Project 1.09 Kalpataru Power Transmission Power 1.09 Lupin Pharmaceuticals 1.09 Sesa Sterlite Non - Ferrous Metals 1.08 Jain Irrigation Systems Industrial Products 1.08 Bank of Baroda Banks 1.07 CEAT Auto Ancillaries 1.07 Prestige Estates Projects Construction 1.07 Yes Bank Banks 1.05 Dish TV India Media & Entertainment 1.03 Aditya Birla Nuvo Services 1.02 Bajaj Auto Auto 1.01 Bombay Burmah Trading Corporation Consumer Non Durables 1.00 Cyient Software 0.99 Hindustan Petroleum Corporation Petroleum Products 0.98 IRB Infrastructure Developers Construction 0.94 United Spirits Consumer Non Durables 0.94 The Indian Hotels Company Hotels, Resorts & ther Recreational Activities 0.93 RattanIndia Power Power 0.78 Hindustan Zinc Non - Ferrous Metals 0.75 SRF Textile Products 0.67 KPIT Technologies Software 0.52 Crompton Greaves Industrial Capital Goods 0.50 Tata Motors - Rights Auto 0.02 Tata Motors - A Class - Rights Auto 0.01 Fixed Deposit 0.21 CitiBank Unrated 0.21 Investment Funds/Mutual Funds 0.96 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 0.96 Cash and Other Assets 0.08 SECTOR ALLOCATION (TOP 10) (As on April 30, 2015) Banks 18.55% Software 11.62% Auto Cement Finance Consumer Non Durables Pharmaceuticals Construction Project Petroleum Products Non - Ferrous Metals 8.36% 7.27% 6.90% 6.21% 5.95% 5.14% 4.20% 3.12% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 16

17 Principal Balanced Fund (An open-ended balanced scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Half yearly) : ` ` INVESTMENT OBJECTIVE: To provide long term appreciation and current income by investing in a portfolio of equity, equity related securities and fixed income securities. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 29, March 24, N.A. N.A. November 5, N.A. N.A. November 9, 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. RATIOS & OTHER DETAILS (As on April 30, 2015) Standard Deviation^ (Annualised) 12.15% Beta^ 1.08 Sharpe Ratio^ (Annualised) 0.87 Portfolio Turnover Ratio** 0.63 Expense Ratio (Regular Plan) #+ 2.62% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with % risk free rate of return (91 days - T Bill Rate as on Apr. 29, 2015). ** The Portfolio 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. # Calculated as year to date ratio to average AUM, excluding service tax on management fees. + Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. AVERAGE MATURITY (As on April 30, 2015) 8.23 years MODIFIED DURATION (As on April 30, 2015) 5.14 years Instrument Industry / Rating % of Equity ICICI Bank Banks 3.55 State Bank of India Banks 2.51 Maruti Suzuki India Auto 2.03 Axis Bank Banks 1.92 HDFC Bank Banks 1.84 Infosys Software 1.84 Dewan Housing Finance Corporation Finance 1.84 HCL Technologies Software 1.80 UPL Pesticides 1.75 Tata Motors Auto 1.72 Housing Development Finance Corpn. Finance 1.66 ITC Consumer Non Durables 1.51 Tata Communications Telecom - Services 1.50 PC Jeweller Consumer Durables 1.50 The Federal Bank Banks 1.49 JK Cement Cement 1.45 Aurobindo Pharma Pharmaceuticals 1.41 Ashoka Buildcon Construction Project 1.41 Britannia Industries Consumer Non Durables 1.40 Reliance Industries Petroleum Products 1.38 Tata Motors - A Class Auto 1.33 Tata Consultancy Services Software 1.30 Power Finance Corporation Finance 1.22 Tech Mahindra Software 1.14 Motherson Sumi Systems Auto Ancillaries 1.14 Bharat Forge Industrial Products 1.11 Cipla Pharmaceuticals 1.03 UltraTech Cement Cement 0.90 Century Textiles & Industries Cement 0.90 Firstsource Solutions Software 0.89 Abbott India Pharmaceuticals 0.88 The India Cements Cement 0.87 National Aluminium Company Non - Ferrous Metals 0.86 Larsen & Toubro Construction Project 0.85 Hindustan Construction Company Construction Project 0.83 Lupin Pharmaceuticals 0.76 Bharat Petroleum Corporation Petroleum Products 0.75 Kalpataru Power Transmission Power 0.75 CEAT Auto Ancillaries 0.75 Jain Irrigation Systems Industrial Products 0.75 Sesa Sterlite Non - Ferrous Metals 0.75 Prestige Estates Projects Construction 0.74 Bank of Baroda Banks 0.73 Indraprastha Gas Gas 0.73 KEC International Construction Project 0.72 The Ramco Cements Cement 0.71 Yes Bank Banks 0.71 Aditya Birla Nuvo Services 0.70 Bajaj Auto Auto 0.69 Hindustan Petroleum Corporation Petroleum Products 0.69 Cyient Software 0.68 Dish TV India Media & Entertainment 0.68 Bombay Burmah Trading Corporation Consumer Non Durables 0.67 United Spirits Consumer Non Durables 0.64 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.63 IRB Infrastructure Developers Construction 0.62 RattanIndia Power Power 0.54 Hindustan Zinc Non - Ferrous Metals 0.52 SRF Textile Products 0.47 Crompton Greaves Industrial Capital Goods 0.35 KPIT Technologies Software 0.35 Tata Motors - Rights Auto 0.01 Tata Motors - A Class - Rights Auto 0.01 Treasury Bill 0.13 T-Bill 91 Day 2015 Sovereign 0.13 Bonds & NCDs Power Grid Corporation of India AAA 8.60 Reliance Utilities and Power P. Ltd AAA 6.74 Power Finance Corporation AAA 2.16 Fixed Deposit 0.15 CitiBank Unrated 0.15 Investment Funds/Mutual Funds Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds Cash and Other Assets 1.33 SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on April 30, 2015) Banks 12.75% Software 8.00% Auto Cement Finance Consumer Non Durables Pharmaceuticals Construction Project Petroleum Products Non - Ferrous Metals 5.79% 4.83% 4.72% 4.22% 4.08% 3.81% 2.82% 2.13% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% (% of ) 17

18 Principal Debt Savings Fund (An open-ended income fund) - Monthly Income Plan (Monthly Income is not assured and is subject to the availability of distributable surplus.) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Monthly) : ` ` Dividend Option (Quarterly) : ` ` INVESTMENT OBJECTIVE To generate regular income through investments in fixed income securities so as to make periodical income distribution to the Unitholders and also to generate long-term capital appreciation by investing a portion of the Scheme s assets in equity and equity related instruments. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) March 24, February 24, January 23, Quarterly Dividend (Last 3 Quarters) March 24, December 24, September 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. Instrument Industry/Rating % of Derivatives 2.12 NIFTY Index Future May 2015 Index Futures 2.12 Treasury Bill 1.41 T-Bill 91 Day 2015 Sovereign 1.41 Sovereign % GOI -M- 23-DEC-2043 Sovereign % GOI -M- 01-DEC-2044 Sovereign Bonds & NCDs Power Grid Corporation of India AAA Reliance Utilities and Power P. Ltd AAA Rural Electrification Corporation AAA 6.36 Investment Funds/Mutual Funds Principal Index Fund - Direct - Growth Plan Mutual Funds Cash and Other Assets 2.80 COMPOSITION BY ASSETS (As on April 30, 2015) Industry / Ratings % of Sovereign Bonds & NCDs Investment Funds/Mutual Funds Derivatives 2.12 Treasury Bill 1.41 Cash and Other Assets 2.80 RATIO (As on April 30, 2015) Portfolio Turnover Ratio** ** The Portfolio 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. RATING PROFILE (As on April 30, 2015) Sovereign 47.90% AVERAGE MATURITY OF THE DEBT years MODIFIED DURATION OF THE DEBT 8.42 years AAA Cash and Other Assets (incl. MF Units & Index Futures) 15.52% 36.58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% (% of ) 18

19 Principal Government Securities Fund (An open-ended dedicated gilt scheme investing in government securities) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Quarterly) : ` ` Dividend Option (Annual) : ` ` INVESTMENT OBJECTIVE To generate return through investment in sovereign securities and thus provide capital gains and income distribution to its Unitholders. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Quarterly Dividend Option (Last 3 Quarters) March 24, December 24, September 24, Annual Dividend Option (Last 3 Years) September 24, September 24, September 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) years Instrument Rating % of Sovereign % GOI -M- 24-NOV-2026 Sovereign % GOI -M- 30-SEP-2030 Sovereign % GOI -M- 02-JUN-2028 Sovereign % GOI -M- 15-FEB-2027 Sovereign % GOI -M- 31-DEC-2042 Sovereign % GOI -M- 20-MAY-2023 Sovereign 3.17 Cash and Other Assets 8.52 COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Sovereign Cash and Other Assets 8.52 RATING PROFILE (As on April 30, 2015) Sovereign 91.48% Cash and Other Assets 8.52% 0.00% 20.00% 40.00% 60.00% 80.00% % (% of ) MODIFIED DURATION (As on April 30, 2015) 7.21 years MATURITY PROFILE Period Portfolio (%) 5-10 years years Above 15 years Cash and Other Assets

20 Principal Income Fund - Long Term Plan (An open-ended income scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Quarterly) : ` ` Dividend Option (Annual) : ` ` INVESTMENT OBJECTIVE To generate regular income and capital appreciation/accretion through investment in debt instruments and related securities besides preservation of capital. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Quarterly Dividend Option (Last 3 Quarters) March 24, December 24, September 24, Annual Dividend Option (Last 3 Years) September 24, September 24, September 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) years MODIFIED DURATION (As on April 30, 2015) 6.13 years MATURITY PROFILE Period Portfolio (%) Less than 1 year years years years years Above 15 years Cash and Other Assets 6.49 Instrument Rating % of Sovereign % GOI -M- 15-FEB-2027 Sovereign % GOI -M- 30-SEP-2030 Sovereign % GOI -M- 25-NOV-2023 Sovereign % GOI -M- 24-NOV-2026 Sovereign % GOI -M- 02-JUN-2028 Sovereign % GOI -M- 31-DEC-2042 Sovereign % GOI -M- 20-MAY-2023 Sovereign 2.02 Bonds & NCDs Rural Electrification Corporation AAA 7.75 Housing Development Finance Corporation AAA 7.14 Power Finance Corporation AAA 7.04 Investment Funds/Mutual Funds 3.52 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 3.52 Cash and Other Assets 2.97 COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Sovereign Bonds & NCDs Investment Funds/Mutual Funds 3.52 Cash and Other Assets 2.97 RATING PROFILE (As on April 30, 2015) Sovereign AAA Cash and Other Assets (incl. MF Units) 6.49% 21.93% 71.58% 0.00% 20.00% 40.00% 60.00% 80.00% (% of ) 20

21 Principal Debt Opportunities Fund - Corporate Bond Plan (An open-ended debt scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Monthly) : ` ` INVESTMENT OBJECTIVE The primary objective is to generate income and capital gains through investments in a portfolio of securities issued by Private and Public Sector Companies. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 1,000/-. Past performance may or may not be sustained in the future. All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) 17 days MODIFIED DURATION (As on April 30, 2015) 17 days Instrument Rating % of Commercial Paper Hero Cycles A IL&FS Transportation Networks A Edelweiss Financial Services A Indostar Capital Finance Private A HCL Infosystems A Dewan Housing Finance Corporation A Cox & Kings A Treasury Bill 0.13 T-Bill 91 Day 2015 Sovereign 0.13 Bonds & NCDs 2.72 Power Finance Corporation AAA 2.30 Cholamandalam Investment and Finance Company AA 0.21 Rural Electrification Corporation AAA 0.21 Cash and Other Assets 0.31 COMPOSITION BY ASSETS (As on April 30, 2015) Industry / Ratings % of Commercial Paper Bonds & NCDs 2.72 Treasury Bill 0.13 Cash and Other Assets 0.31 RATING PROFILE (As on April 30, 2015) A % A % AAA AA Sovereign Cash and Other Assets 2.51% 0.21% 0.13% 0.31% 0.00% 20.00% 40.00% 60.00% 80.00% (% of ) 21

22 Principal Income Fund Short Term Plan (An open-ended income scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Monthly) : ` ` 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. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) 2.97 years MODIFIED DURATION (As on April 30, 2015) 2.69 years Instrument Rating % of Certificate of Deposit 8.60 Canara Bank A Punjab & Sind Bank A RBL Bank A Commercial Paper SKS Microfinance A IL&FS Transportation Networks A Bilt Graphic Paper Products Ltd A HCL Infosystems A Treasury Bill 0.68 T-Bill 91 DAY 2015 Sovereign 0.68 Sovereign % GOI -M- 09-JUN-2020 Sovereign % GOI -M- 10-DEC-2020 Sovereign % GOI -M- 20-MAY-2023 Sovereign 1.10 Bonds & NCDs Rural Electrification Corporation AAA Power Grid Corporation of India AAA 8.75 Tata Motors AA 5.88 LIC Housing Finance AAA 5.85 Tata Motors AA Power Finance Corporation AAA 2.87 IDFC AAA 2.86 Cholamandalam Investment and Finance Co. AA 2.59 Dewan Housing Finance Corporation AAA 1.74 Investment Funds/Mutual Funds 4.89 Principal Cash Management Fund - Direct Plan - Growth Option Mutual Funds 4.89 Cash and Other Assets 2.62 COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Bonds & NCDs Sovereign Commercial Paper Certificate of Deposit 8.60 Investment Funds/Mutual Funds 4.89 Treasury Bill 0.68 Cash and Other Assets 2.62 RATING PROFILE (As on April 30, 2015) AAA Sovereign A1+ AA AA+ 5.75% 8.47% 16.82% 19.27% 36.50% A1 Cash and Other Assets (incl. MF Units) 5.68% 7.51% 0.00% 10.00% 20.00% 30.00% 40.00% (% of ) 22

23 Principal Bank CD Fund (An open-ended debt scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Monthly) : ` ` INVESTMENT OBJECTIVE The objective is to generate returns by primarily investing in Bank CDs. Bank CDs provide liquidity and a relatively lower credit risk. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 1,000/- Past performance may or may not be sustained in the future. All Dividend (`/Unit) figures are Gross Dividend. Instrument Rating % of Certificate of Deposit DCB Bank A RBL Bank A Canara Bank A Oriental Bank of Commerce A Treasury Bill 0.14 T-Bill 91 Day 2015 Sovereign 0.14 Bonds & NCDs Dewan Housing Finance Corporation AAA Cash and Other Assets 0.34 COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Certificate of Deposit BONDS & NCDs Treasury Bill 0.14 Cash and Other Assets 0.34 AVERAGE MATURITY (As on April 30, 2015) 308 days RATING PROFILE (As on April 30, 2015) A % MODIFIED DURATION (As on April 30, 2015) 304 days AAA 15.72% Sovereign 0.14% Cash and Other Assets 0.34% 0.00% 20.00% 40.00% 60.00% 80.00% % (% of ) 23

24 Principal Debt Opportunities Fund - Conservative Plan (An open-ended debt scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Daily) : ` ` Dividend Option (Weekly) : ` ` Dividend Option (Monthly) : ` ` INVESTMENT OBJECTIVE To generate regular income and capital appreciation through investments in debt securities and money market instruments. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 1,000/-. Past performance may or may not be sustained in the future. All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) 237 days Treasury Bill 5.48 T-Bill 182 Day 2015 Sovereign 5.00 T-Bill 91 Day 2015 Sovereign 0.48 BONDS & NCDs Tata Motors AA Music Broadcast Private AA 4.02 Shriram City Union Finance AA 2.02 Cholamandalam Investment and Finance Co. AA 1.62 Housing Development Finance Corporation AAA 1.03 Rural Electrification Corporation AAA 0.37 LIC Housing Finance AAA 0.20 Power Finance Corporation AAA 0.14 Cash and Other Assets COMPOSITION BY ASSETS (As on April 30, 2015) Ratings Credit Risk Rating [ICRA] AAAmfs ++ % of Commercial Paper Bonds & NCDs Treasury Bill 5.48 Certificate of Deposit 4.38 Cash and Other Assets MODIFIED DURATION (As on April 30, 2015) 212 days RATING PROFILE (As on April 30, 2015) A % AA 23.26% Instrument Rating % of Certificate of Deposit 4.38 State Bank of Bikaner and Jaipur A Commercial Paper HCL Infosystems A SKS Microfinance A JK Lakshmi Cement A Dewan Housing Finance Corporation A Godrej Industries A STCI Finance A Edelweiss Financial Services A IFMR Capital Finance Private A KEC International A A % Sovereign AAA 5.48% 1.74% Cash and Other Assets -0.54% % 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% (% of ) Past performance is no guarantee of future result. ( ++ for rating methodology please refer page 37.) 24

25 Principal Cash Management Fund (An open-ended liquid scheme) Credit Risk Rating [ICRA] A1+mfs ++ QAAUM (For the period January to March 2015): ` 2, crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Daily) : ` ` Dividend Option (Weekly) : ` ` Dividend Option (Monthly) : ` ` 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. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 1,000/-. Past performance may or may not be sustained in the future. All Dividend (`/Unit) figures are Gross Dividend. AVERAGE MATURITY (As on April 30, 2015) 43 days MODIFIED DURATION (As on April 30, 2015) 42 days Instrument Rating % of Certificate of Deposit Punjab & Sind Bank A Vijaya Bank A Oriental Bank of Commerce A State Bank of Bikaner and Jaipur A Dena Bank A Syndicate Bank A Karur Vysya Bank A Corporation Bank A The South Indian Bank A DCB Bank A State Bank of Bikaner and Jaipur A The Jammu & Kashmir Bank A Commercial Paper Cox & Kings A Dewan Housing Finance Corporation A Edelweiss Financial Services A Aditya Birla Finance A Phillips Carbon Black A KEC International A Religare Finvest A Hinduja Leyland Finance A Vardhman Special Steels A Family Credit A Magma ITL Finance A ICICI Home Finance Company A Aditya Birla Housing Finance A Bilt Graphic Paper Products Ltd A Kotak Commodity Services A Avanse Financial Services Ltd A JK Lakshmi Cement A Hero Steels A Treasury Bill TBILL 91 DAY 2015 Sovereign TBILL 182 DAY 2015 Sovereign 0.84 TBILL 91 DAY 2015 Sovereign 0.35 Bonds & NCDs 0.81 Manappuram Finance A Fixed Deposit 6.78 Allahabad Bank Unrated 6.78 Cash and Other Assets COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Commercial Paper Certificate of Deposit Treasury Bill Fixed Deposit 6.78 Bonds & NCDs 0.81 Cash and Other Assets RATING PROFILE (As on April 30, 2015) A % Sovereign A1 Unrated A+ Cash and Other Assets 11.23% 9.84% 6.78% 0.81% -9.92% % 0.00% 20.00% 40.00% 60.00% 80.00% % (% of ) Past performance is no guarantee of future result. ( ++ for rating methodology please refer page 37.) 25

26 Principal Global Opportunities Fund (An open-ended Fund of Funds scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option: ` ` Dividend Option: ` ` INVESTMENT OBJECTIVE To provide long term capital appreciation by predominantly investing in overseas mutual fund schemes, and a certain portion of its corpus in Money Market Securities and/or units of Money Market / Liquid Schemes of Principal Mutual Fund. Instrument % of Foreign Securities I. Units of Mutual Fund / Unit Trust Principal Global Investors Funds - Emerging Markets Equity Fund II. Cash and Other Current Assets 4.71 Principal Retail Money Manager Fund (An open-ended debt scheme) QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Daily) : N.A. ` Dividend Option (Weekly) : N.A. ` Dividend Option (Monthly) : ` ` INVESTMENT OBJECTIVE To generate regular income & capital appreciation through investments in debt securities and money market instruments. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, * On face value of ` 1,000/-. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. Instrument Rating % of Certificate of Deposit Syndicate Bank A Oriental Bank of Commerce A RBL Bank A Commercial Paper KEC International A Phillips Carbon Black A Edelweiss Financial Services A Aditya Birla Housing Finance A IL&FS Transportation Networks A Treasury Bill 0.18 T-Bill 91 Day 2015 Sovereign 0.18 Cash and Other Assets 4.55 COMPOSITION BY ASSETS (As on April 30, 2015) Ratings % of Commercial Paper Certificate of Deposit Treasury Bill 0.18 Cash and Other Assets 4.55 AVERAGE MATURITY (As on April 30, 2015) 33 days MODIFIED DURATION (As on April 30, 2015) 33 days RATING PROFILE (As on April 30, 2015) A1 A1+ Sovereign 0.18% 37.95% 57.32% Cash and Other Assets 4.55% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% (% of ) 26

27 Principal Debt Savings Fund (An open-ended income fund) - Retail Plan QAAUM (For the period January to March 2015): ` crore per unit (As on April 30, 2015) Direct Plan Regular Plan Growth Plan : ` ` Dividend Plan (Monthly) : N.A. ` Dividend Plan (Quarterly) : ` ` INVESTMENT OBJECTIVE To seek to generate stable returns and capital appreciation through investment in Debt instruments and related securities over medium to long term investment horizon. DIVIDEND UPDATE Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend Monthly Dividend (Last 3 Months) April 24, March 24, February 24, Quarterly Dividend (Last 3 Quarters) March 24, December 24, September 24, * On face value of ` 10. Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. RATIO (As on April 30, 2015) Portfolio Turnover Ratio** ** The Portfolio 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. AVERAGE MATURITY (As on April 30, 2015) 4.71 years Instrument Rating % of Commercial Paper SKS Microfinance A Treasury Bill 0.98 T-Bill 91 Day 2015 Sovereign 0.98 Sovereign % GOI -M- 09-JUN-2020 Sovereign Bonds & NCDs Power Finance Corporation AAA Power Grid Corporation of India AAA Rural Electrification Corporation AAA Bajaj Finance AA Reliance Utilities and Power P. Ltd AAA 2.22 Lafarge India Pvt. Ltd. AA Cash and Other Assets 4.35 COMPOSITION BY ASSETS (As on April 30, 2015) Industry / Ratings % of Bonds & NCDs Sovereign Commercial Paper Treasury Bill 0.98 Cash and Other Assets 4.35 RATING PROFILE (As on April 30, 2015) AAA 55.59% Sovereign 22.80% MODIFIED DURATION (As on April 30, 2015) 4.3 years A1+ AA+ Cash and Other Assets 5.23% 4.35% 12.03% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% (% of ) 27

28 Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. ANUPAM TIWARI PRINCIPAL LARGE CAP FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (S&P BSE 100 Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 11-Nov-05 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL PERSONAL TAX SAVER FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (S&P BSE 100 Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 31-Mar-96 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL SMART EQUITY FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (Crisil Balanced Fund Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 16-Dec-10 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A SCHEMES MANAGED BY MR. RAJAT JAIN PRINCIPAL GLOBAL OPPORTUNITIES FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (MSCI World Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 29-Mar-04 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A SCHEMES MANAGED BY RUPALI PANDIT PRINCIPAL INDEX FUND - NIFTY Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CNX Nifty Index) (S&P BSE Sensex) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 27-Jul-99 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL INDEX FUND - MIDCAP # Performance ^Returns (%) Date Plan - Regular Plan - Direct Scheme s Benchmark Additional Benchmark (CNX Midcap Index) (CNX Nifty Index) Since Inception 12-May-14 to 31-Mar-15 N.A. N.A. N.A. N.A. Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis. $ PTP (Point to Point) Returns is 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. ^ Growth Option # As the scheme has not completed one year, the performance/returns for this scheme is not provided 28

29 Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. DHIMANT SHAH PRINCIPAL EMERGING BLUECHIP FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CNX Midcap Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 12-Nov-08 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL DIVIDEND YIELD FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CNX Dividend Opportunities Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 15-Oct-04 to 31-Mar N.A. N.A. N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A SCHEMES MANAGED BY BEKXY KURIAKOSE PRINCIPAL GOVERNMENT SECURITIES FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (I-Sec Composite Index) (CRISIL 10 Year Gilt Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 23-Aug-01 to 31-Mar N.A. N.A. N.A. N.A. N.A. N.A. Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL DEBT OPPORTUNITIES FUND - CORPORATE BOND PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (Crisil Liquid Fund Index) (CRISIL 1 Year T-Bill Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 14-Sep-04 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL INCOME FUND - LONG TERM PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (Crisil Composite Bond Fund Index) (CRISIL 10 Year Gilt Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 09-May-03 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis. $ PTP (Point to Point) Returns is 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. ^ Growth Option 29

30 Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. P.V.K. MOHAN PRINCIPAL GROWTH FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (S&P BSE 200 Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 25-Oct-00 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL TAX SAVINGS FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (S&P BSE 200 Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 31-Mar-96 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL BALANCED FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (Crisil Balanced Fund Index) (CNX Nifty Index) Date ^Returns (%) $ PTP Returns (`) 31-Mar-14 to 31-Mar Mar-13 to 31-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 14-Jan-00 to 31-Mar N.A. N.A. N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A SCHEMES MANAGED BY MR. GURVINDER SINGH WASAN PRINCIPAL BANK CD FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Liquid Fund Index) (CRISIL 1 Year T-Bill Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 06-Nov-07 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL INCOME FUND - SHORT TERM PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Short-Term Bond Fund Index) (CRISIL 10 Year Gilt Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 09-May-03 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis. $ PTP (Point to Point) Returns is 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. ^ Growth Option 30

31 Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. PANKAJ JAIN PRINCIPAL DEBT OPPORTUNITIES FUND - CONSERVATIVE PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Liquid Fund Index) (CRISIL 1 Year T-Bill Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 14-Sep-04 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL DEBT SAVINGS FUND - MONTHLY INCOME PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (Crisil MIP Blended Index) (Crisil 10 year Gilt Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 23-May-02 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL DEBT SAVINGS FUND - RETAIL PLAN Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Short-Term Bond Fund Index) (CRISIL 10 Year Gilt Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 30-Dec-03 to 31-Mar N.A. N.A Since Inception 02-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL CASH MANAGEMENT FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Liquid Fund Index) (CRISIL 1 Year T-Bill Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 30-Aug-04 to 31-Mar N.A. N.A Since Inception 01-Jan-13 to 31-Mar-15 N.A. N.A PRINCIPAL RETAIL MONEY MANAGER FUND Performance Scheme Returns Scheme s Benchmark Additional Benchmark Plan - Regular Plan - Direct (CRISIL Liquid Fund Index) (CRISIL 1 Year T-Bill Index) Date ^Returns (%) $ PTP Returns (`) 28-Mar-14 to 31-Mar Mar-13 to 28-Mar Mar-12 to 28-Mar N.A. N.A Since Inception 28-Dec-07 to 31-Mar N.A. N.A Since Inception 01-Jan-13 to 31-Mar-15 N.A. N.A Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis. $ PTP (Point to Point) Returns is 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. ^ Growth Option 31

32 Systematic Investment Plan (SIP) Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. ANUPAM TIWARI PRINCIPAL LARGE CAP FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (S&P BSE 100 Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Since Inception SIP 224, , , , Inception Date - November 11, 2005 PRINCIPAL PERSONAL TAX SAVER FUND Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (S&P BSE 100 Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 454, ,492, ,203, ,009, Inception Date - March 31, 1996 PRINCIPAL SMART EQUITY FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (Crisil Balanced Fund Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Since Inception SIP 102, , , , Inception Date - December 16, 2010 SCHEMES MANAGED BY MR. DHIMANT SHAH PRINCIPAL EMERGING BLUECHIP FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (CNX Midcap Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Since Inception SIP 152, , , , Inception Date - November 12, 2008 PRINCIPAL DIVIDEND YIELD FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (CNX Dividend Opportunities Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 250, , , , Inception Date - October 15, 2004 Returns shown above are for Regular Plan - Growth option. Past performance may or may not be sustained in the future. 32

33 Systematic Investment Plan (SIP) Returns (As on March 31, 2015) SCHEMES MANAGED BY MR. P.V.K. MOHAN PRINCIPAL GROWTH FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (S&P BSE 200 Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 346, ,346, ,288, ,179, Inception Date - October 25, 2000 PRINCIPAL TAX SAVINGS FUND Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (S&P BSE 200 Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 456, ,651, ,304, ,031, Inception Date - March 31, 1996 PRINCIPAL BALANCED FUND - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (Crisil Balanced Fund Index) (CNX Nifty Index) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 364, ,233, ,026, ,285, Inception Date - January 14, 2000 SCHEMES MANAGED BY RUPALI PANDIT PRINCIPAL INDEX FUND - NIFTY - GROWTH Particulars Total Scheme s Returns Scheme s Benchmark Additional Benchmark Amount (CNX Nifty Index) (S&P BSE Sensex) Invested Returns Yield MarketValue Returns Yield* MarketValue Returns Yield* MarketValue (in `) (%) (in `) (%) (in `) (%) (in `) 1 Year SIP 24, , , , Years SIP 72, , , , Years SIP 120, , , , Years SIP 168, , , , Years SIP 240, , , , Since Inception SIP 376, ,254, ,360, ,392, Inception Date - July 27, 1999 Returns 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 assuming investment of ` 2,000/- 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 Returns section on page 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. 33

34 Tax Rates for Mutual Fund Investors 1 as per the proposed Finance Bill, 2015 SNAPSHOT EQUITY ORIENTED FUNDS (SUBJECT TO STT 3 ) Short Term Capital Long Term Capital Dividend Tax on Distributed TDS on Gains Tax (STCG) 2 Gains Tax (LTCG) 2 Income Income Capital Gains 7 Financial Year Resident Individual / 15% 15% Nil Nil Exempt Exempt Nil Nil Nil Nil HUF / AOP / BOI Resident 15% 15% Nil Nil Exempt Exempt Nil Nil Nil Nil Partnership Firms Domestic 15% 15% Nil Nil Exempt Exempt Nil Nil Nil Nil Companies NRIs 4 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15% 2 STCG - 15% 2 LTCG - Nil LTCG - Nil FPIs 4 & 10 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - Nil 6 STCG - Nil 6 LTCG - Nil 6 LTCG - Nil 6 OTHER THAN EQUITY ORIENTED FUNDS (including Infrastructure Debt Funds 8 ) Short Term Long Term Dividend Tax on Distributed Tax on Distributed TDS on Capital Gains Capital Gains Income Income - Other than Income - Liquid / Capital Gains 7 Tax 2 & 13 Tax 2 & 13 Liquid / Money Money Market Market Schemes Schemes & & & & Resident As per As per 20% 20% Exempt Exempt 25% 25% 25% 25% Nil Nil Individual / slab rates slab rates (With Indexation) (With Indexation) HUF Option to Without Indexation (if transferred between to ) AOP/BOI As per As per 20% 20% Exempt Exempt 30% 30% 30% 30% Nil Nil slab rates slab rates (With Indexation) (With Indexation) Option to Without Indexation (if transferred between to ) Domestic 30% 30% 20% 20% Exempt Exempt 30% 30% 30% 30% Nil Nil Companies / (With Indexation) (With Indexation) Firms Option to Without Indexation (if transferred between to ) NRIs 4 As per As per Listed Units - Listed Units - Exempt Exempt 25% 25% 25% 25% STCG - 30% 2 STCG - 30% 2 slab rates slab rates 20% 20% LTCG - 20% 2 LTCG - 20% 2 (with Indexation) (with Indexation) 5% for IDFs 5% for IDFs with indexation with indexation Option to tax for listed units. for listed Unlisted 10% 2 10% 2 Without Indexation Units - 10% without indexation without indexation (if transferred (without Indexation) 5 for unlisted units5 for unlisted units 5 between to ) Unlisted Units - 10% (without Indexation) 5 FPI 4 & 10 30% 30% 10% 10% Exempt Exempt 30% 30% 30% 30% STCG - Nil 6 STCG - Nil 6 without Indexation without Indexation LTCG - Nil 6 LTCG - Nil 6 5% for IDFs 5% for IDFs (Contd. on next page) 34

35 Tax Rates for Mutual Fund Investors 1 as per the proposed Finance Bill, 2015 SNAPSHOT 1 It is assumed that the mutual fund units are held as capital assets by the investors. 2 Plus applicable surcharge [refer note 9], if any, and Education Cess at the rate of 2% on income-tax and surcharge and Secondary and Higher Education cess at the rate of 1% on income-tax and surcharge. 3 Securities Transaction Tax ( STT ) is applicable only in respect of sale of units of Equity-oriented funds ('EOFs') on a recognised stock exchange and redemption of EOUs by the mutual fund. Purchase/ sale/ redemption of units other than EOUs are not subject to STT. 4 Non-resident investors shall be entitled to be governed by provisions of the applicable Tax Treaty, which India has entered with the country of residence of the non-resident investor, if that is more beneficial than the provisions of the Income-tax Act, 1961 ( the Act ), subject to certain conditions. As per section 90(4) of the Act, a non-resident shall not be entitled to claim treaty benefits, unless the non-resident obtains a Tax Residency Certificate of being a resident of his home country. Furthermore, as per section 90(5) of the Act, non-resident is also required to provide such other documents and information, as prescribed by CBDT, as applicable. 5 As per section 112 of the Act (as amended by the Finance Act, 2012), long-term capital gains in case of non-residents would be 10% on transfer of capital assets, being unlisted securities, computed without giving effect to first & second proviso to section 48 i.e. without taking benefit of foreign currency fluctuation and indexation benefit. 6 Section 196D of the Act provides that no tax is required to be withheld for payment to a FII / FPI in respect of capital gains arising on transfer of units. 7 As per provisions of Section 206AA of the Act, if there is default on the part of a non-resident investor (entitled to receive redemption proceeds from the Mutual Fund on which tax is deductible under Chapter XVII of the Act) to provide its Permanent Account Number, the tax shall be deducted at higher of the following rates: i) rates specified in relevant provisions of the Act; or ii) rate or rates in force; or iii) rate of 20%. 8 Infrastructure Debt Fund means an infrastructure debt fund as defined in clause 1 of the regulation 49L of the Securities and Exchange Board of India (Mutual Fund) Regulations, As per clause 1 of regulation 49L, an Infrastructure Debt Fund Scheme would mean, a scheme which invests primarily (minimum 90% of scheme assets) in debt securities or securitized debt instrument of infrastructure companies or infrastructure capital companies or infrastructure projects or special purpose vehicles, etc. or other permissible assets in accordance with these regulations or bank loans in respect of completed and revenue generating projects of infrastructure companies or projects or special purpose vehicles. 9 Surcharge applicable for FY : Type of Investor Surcharge rate as a % of Income-tax If income is If income exceeds ` 1 crore If income exceeds less than ` 1 crores but less than ` 10 crores ` 10 crores Resident Individual, HUF, AOP and Partnership Firm Nil 12% 12% Domestic Company Nil 7% 12% Foreign Company Nil 2% 5% Foreign non-corporate Nil 12% 12% 10 The FPI Regulations replaced the existing SEBI (Foreign Institutional Investor) Regulations, 1995 and the Qualified Foreign Investors framework, and are effective from 7 January As per Notification No. 9/2014 dated 22 January 2014, the Central Government has specified the Foreign Portfolio Investors registered under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, as Foreign Institutional Investor for the purposes of clause (a) of the Explanation to section 115AD of the Act. 11 Rates are exclusive of surcharge at the rate of 12% and education cess at the rate of 3%. 12 With effect from 1 October 2014, as per Finance (No. 2) Act, 2014, additional tax on income distributed to unit-holders would be levied on the amount of income to be distributed including such additional tax (i.e. grossing-up), as against levy on only the amount of income to be distributed, thereby resulting in a higher effective rate of tax on distributed income. 13 Capital gains arising on the transfer or redemption of other than equity oriented units (from 1 April 2014 to 10 July 2014) held for a period of 12 months or more, immediately preceding the date of transfer should be regarded as long term capital gains. Capital gains arising on transfer or redemption of such units on or after 11 July 2014 should be regarded as long-term capital gains if such units are held for a period of 36 months or more immediately preceding the date of transfer. (Contd. on next page) 35

36 Tax Rates for Mutual Fund Investors 1 as per the proposed Finance Bill, 2015 SNAPSHOT Total Income Up to ` 250,000 (a)(b)(d) INCOME TAX RATES FOR INDIVIDUAL / HUF / AOP / BOI for AY Tax Rates (c) ` 250,001 to ` 500,000 10% ` 500,001 to ` 1,000,000 20% ` 1,000,001 and above 30% (a) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is ` 300,000. (b) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is ` 5,00,000. (c) Plus, surcharge on income-tax, as applicable and education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1% on income-tax (d) Rebate of upto ` 2,000 available for resident individuals whose total income does not exceed ` 5,00,000. NIL Equity Oriented Fund SECURITIES TRANSACTION TAX STT on sale of a unit of equity oriented mutual fund to the mutual fund is levied at 0.001%. No STT is chargeable on purchase of units of an equity oriented mutual fund entered into in recognised stock exchange. STT on sale of a unit of an equity oriented mutual fund where the transaction is entered into in recognized stock exchange and the contract for sale is settled by the actual delivery is levied at 0.001%. Other than Equity Oriented Fund: Purchase/ sale/ redemption of units other than equity-oriented units shall not be subject to STT. Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought/sold. As per Section 94(7): The loss due to sale of Units in the schemes (where income distributed on MF units is tax free) will not be available for set-off to the extent of the tax free income distributed; if units are: (A) Bought within three months prior to the record date fixed for income distribution; and (B) sold within nine months after the record date fixed for income distribution. As per Section 94(8): The loss due to sale of original Units in the schemes, where bonus Units are issued, will not be available for setoff; if original units are :- (A) Bought within three months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units held on the date of transfer of original units. This information is being provided for basic guidance for investments in mutual funds and is based on provisions of the Income-tax Act, 1961, as proposed by the Finance Bill, The tax implications may vary for each assessee based on the details of his income. All rates and figures appearing are for illustrative purposes only. Tax benefits are subject to change in tax laws. Contents of this note have been drawn for informative purpose only and the same should not be used or considered as an investment/tax advice. The AMC/Trustee/Sponsor accepts no liability whatsoever for any direct or consequential loss arising from any information provided in this note. 36

37 Understanding Ratios & Risk Measures STANDARD DEVIATION - Is the average deviation from the mean returns. It is an indication of volatility i.e. deviation from mean returns. Lower the better. For instance a scheme that has a consistent four-year return of 3% would have a mean or average of 3%. The standard deviation for this scheme would then be zero because the scheme's return in any given year does not differ from its four-year mean of 3%. On the other hand, a scheme that in each of the last four years returned -5%, 17%, 2% and 30% will have a mean return of 11%. The scheme will also exhibit a high standard deviation because each year the return of the scheme differs from the mean return. This scheme is therefore riskier because it fluctuates widely between negative and positive returns within a short period. Calculation = Square Root of Variance. Where Variance is the average of the squared deviations from mean returns. BETA - Can be interpreted as percentage change in price of a scheme for every one percentage change in the market benchmark. For example if a scheme's beta is 1.1 and the market is expected to go up/down by 10% then the scheme will move up/down by 11%. Calculation = Covariance of Market and Scheme's Returns Divided by Variance of the Market. Where Covariance is the Deviation of Mean Returns of Market multiplied by Deviation of Mean Returns of the scheme. JENSEN'S ALPHA - Gives the average return of the portfolio over and above the risk free rate and market determined return. This is the addition by the fund manager over and above the market return and hence higher the better. Calculation = Portfolio Return - (Risk Free Rate of Return + beta [market return - Risk Free Rate of Return]). SHARPE - Gives the returns per unit of risk. i.e. for every 1 unit of risk what is the returns of the scheme. For this purpose risk is defined as standard deviation of the scheme. Higher the Sharpe, the better. It signifies that scheme with a higher sharpe ratio generates returns taking lesser risk. In other words, the scheme is less volatile and yet generating good returns. Thus, given same returns, the scheme with a higher Sharpe ratio offers a better avenue for investing. Calculation = Average Scheme Return - Risk Free Rate of Return : _ Standard Deviation of the Scheme. PORTFOLIO TURNOVER - Portfolio turnover is a measure of how actively a fund manager trades the portfolio of your scheme. Expressed in percentage or number of times, the inverse of a scheme's turnover ratio is the average holding period for a security in that scheme. If a scheme has a 20 per cent turnover ratio, it would suggest that on average that scheme will hold a security for five years before selling it. A scheme with a 200 per cent turnover ratio will change its portfolio in six months or in other words, replace the entire holdings in its portfolio with new stocks in six months. Calculation = Lower of sales or purchases divided by average AUM for last rolling 12 months. ++ ICRA has assigned credit risk rating of [ICRA]A1+mfs to Principal Cash Management Fund. The rating is the highest-credit-quality short-term rating assigned by ICRA to debt funds. It has also assigned the credit risk rating of [ICRA] AAAmfs to Principal Debt Opportunities Fund - Conservative Plan. The rating is the highest-credit-quality long term rating assigned by ICRA to debt funds. 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. 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. 37

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