Fund at a Glance 4-6. Principal Large Cap Fund 7. Principal Growth Fund 9. Principal Index Fund 11. Principal Tax Savings Fund 14

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2 INDEX Contents Page No. Fund Manager Commentary (Debt Markets and Equity Markets) 3 Fund at a Glance 4-6 EQUITY SCHEMES Principal Large Cap Fund 7 Principal Emerging Bluechip Fund 8 Principal Growth Fund 9 Principal Dividend Yield Fund 10 Principal Index Fund 11 Principal SMART Equity Fund 12 EQUITY LINKED SAVINGS SCHEMES (ELSS) Principal Personal Tax Saver Fund 13 Principal Tax Savings Fund 14 TARGET RISK FUNDS Principal Debt Savings Fund - MIP 15 Principal Balanced Fund 16 DEBT SCHEMES Principal Government Securities Fund 17 Principal Income Fund - Long Term Plan 18 Principal Debt Opportunities Fund - Corporate Bond Plan 19 Principal Income Fund - Short Term Plan 20 Principal Bank CD Fund 21 Principal Debt Opportunities Fund - Conservative Plan 22 LIQUID & MONEY MARKET FUNDS Principal Cash Management Fund 23 FUND OF FUNDS SCHEME Principal Global Opportunities Fund 24 RETAIL SCHEMES Principal Retail Money Manager Fund 24 Principal Debt Savings Fund - Retail Plan 25 Principal Retail Equity Savings Fund 26 OTHERS DETAILS Returns Tax Rates for Mutual Fund Investors as per Finance Bill 2013 SNAPSHOT Understanding Ratios & Risk Measures 33

3 Fund Manager Commentary Debt Markets March 2013 Fixed Income Update for March 2013 Key Market Highlights: During the month RBI announced two OMOs worth ` 20,000 crores due to the tight liquidity conditions, however actual amount injected was around ` 15,706 crores In its policy review scheduled on 19th March 2013, RBI cut repo and reverse repo rates by 25 bps each citing low growth conditions. G-sec yields during the month ended higher with the ten year benchmark closing at 7.96%, 9 bps higher than previous month. Corporate bond yields rose in beginning of the month but fell towards end of month on good demand from mutual funds and insurance companies. The ten yr AAA PSU Corporate bond benchmark closed at 8.85%, 5 bps lower than previous month. Corporate bond spreads fell across various tenors. February WPI data release came at 6.84% y-o-y vs 6.62% in previous month. CPI came higher for February 2013 at 10.91% compared to 10.79% in previous month. Food and fuel continue to be top contributors to inflation. January industrial production (IIP) came higher at 2.4% reflecting muted growth. Banks credit growth was at 15.42% in March 2013 while deposit growth was at 13.15%. CD rates rose reflecting intra month however fell towards month end of good demand from mutual funds and banks and low issuance. 3 month CD rates closed at 8.85%, almost 80 bps lower than previous month. 1 year CD rates fell to 8.80% a fall of 60 bps as compared to previous month. Liquidity deficit remained high during the month due to currency leakage and lower government spending. Average LAF repo borrowing for the month was at ` 115,000 crores. Outlook: With the start of the new financial year, market focus has shifted to fresh supply of G-secs and hence yields are expected to remain under pressure with upward bias. However to a large extent the incoming supply seems to have been factored in the yields. The current ten year benchmark G-sec yield is expected to trade in a range of 7.85% to 8.10%. Liquidity in the banking system is expected continue to remain in deficit mode albeit lower, in the range of ` 60,000 crore to ` 1 lakh crores as Govt. resumes spending and advance tax outflows come back into the system. Yields of short term CDs and CPs are expected to benign, having already fallen sharply towards end of March Corporate bond spreads may tighten on lower supply as compared to gilts and expectations of cut in withholding tax for FIIs. We expect the ten yr benchmark AAA PSU Corporate bond to trade in a range of 8.70% to 8.90%. At the short end corporate bond yields may fall by bps. Equity Markets Review of Equity Market for the Month of March 2013 The equity markets were marginally negative during the month of March. This was in line with the MSCI EM index which was down about 2% during the month. There were however, two halves to the month, with the markets gaining in the first half, and giving up all their gains in the second half of the month. The fall was led by negative news on the political front (DMK withdrawing support to the government and negative comments from the Samajwadi Party) and another bout of global 'Risk Off' occasioned by the uncertainty in Cyprus and political uncertainty in Italy. However, the US (rising PERFORMANCE AS ON MARCH 28, 2013 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 Source - Internal expectations of growth) and Japan (investor flows led by efforts to revive the economy) markets did well. FII investors have been buyers of Indian equity (both domestic institutional and retail investors have been selling or on the sidelines) over the past year. Although they were net buyers in cash equity in March (at about $ 1.9 Billion), this was much below the average level of $ 4.4 Billion for the months of December and February. The FIIs have been negative in the month of April so far. As given in the chart below, there was risk aversion during the month, with both mid- caps and small caps underperforming the Large Cap names. In terms of sectors, Metals (global commodities had a poor month) and Autos underperformed, while IT, Pharmaceuticals and Consumer Goods did relatively better. In terms of macroeconomic news, we had a positive surprise in the merchandise trade deficit for February (it came in at about $ 15 Billion against the $ 20 Billion run rate of the past few months). On the other hand, the CPI and WPI both came in higher than expectations, though that did not prevent RBI from cutting rates by 25 bps at the credit policy. The Current account deficit for the December quarter was at 6.7% of GDP, which is the highest ever - Capital flows remain key to financing it. Keeping that in mind, the government has been making efforts to start stalled projects and create a favorable policy environment, though for the moment things are not moving fast on the ground. This is corroborated by other data. The HSBC composite PMI for March came in lower at 52 (vs 54.2 for February) with both new orders and backlog of work showing a worse number. Diesel consumption saw a 2% degrowth which is a rare occurrence. The domestic container traffic de grew 9.3% in February. All in all, things on the ground remain weak, though, as said earlier, the government is trying to revive sentiment. The slowdown has led to stress in asset quality of banks. Q4 FY 13 saw the highest ever CDR referrals (of ` 30,000 crores) though anecdotally things do not seem to be getting worse in terms of asset quality. The results for Q4FY13 will be out shortly. The street has been bringing the estimates down both for FY 13 and FY 14. Current estimates for high single digit growth in earnings for FY 14. In terms of activity during the month, we generally added to our positions in / introduced ITC, L&T, ONGC, Maruti Suzuki and Jet Airways. We sold off reduced our positions in Power Finance Corporation, Oriental Bank of Commerce, Infosys, NHPC and ICICI Bank. 3

4 Fund 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 SMART Equity Fund 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 Equity Scheme Allotment Date - Regular Plan November 11, 2005 November 12, 2008 October 25, 2000 October 15, 2004 July 27, 1999 December 16, Direct Plan January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Investment Plans / Regular Plan & Direct Plan. Both the Plans offer Growth & Dividend Option. Options + 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 Anupam Tiwari Managing the July 2011 June 2011 September 2010 December 2011 October 2012 July 2011 Current Fund from Total Investment 8 years 21 years 19 years 21 years 12 years 8 years Experience Benchmark S&P BSE 100 Index CNX Midcap Index S&P BSE 200 Index CNX Dividend CNX Nifty Index Crisil Balanced Fund 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: ` 500 Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 500 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 date of allotment - 1%. Nil 1% if redeemed (including STP / SWP, within 2 years from the if available) date of allotment. SIP SWP / STP Minimum No. & Amt. of SIP/SWP/STP (if available) Available Available 6 installment of ` 500/- each. EQUITY LINKED SAVINGS SCHEME (ELSS) FUND OF FUNDS SCHEME TARGET RISK FUNDS Particulars Principal Personal Principal Principal Global Principal Debt Principal Tax Saver Fund Tax Savings Fund Opportunities Fund Savings Fund - Balanced Fund (Close for subscription) Monthly Income Plan Nature of the An Open-ended Equity An Open-ended Equity An Open-ended An Open-ended Income Fund An Open-ended Scheme Linked Savings Scheme Linked Savings Scheme Fund of Funds Scheme (Monthly Income is not assured Balanced Scheme and is subject to the availability of distributable surplus) Allotment Date - Regular Plan March 31, 1996 March 31, 1996 March 29, 2004 May 23, 2002 January 14, Direct Plan January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 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 Plan do not have Both the Plan do not have Both the Plans offer Both the Plans offer Both the Plans offer any options at present. any options at present. Growth & Dividend Option. Dividend & Growth Option. Growth & Dividend Option. Dividend Option under both Dividend Frequencies - Dividend Option under both the Plan offers facility of Payout, Monthly / Quarterly the Plan offers facility of Payout, Reinvestment and Sweep. Reinvestment and Sweep. Fund Manager & Anupam Tiwari P.V.K. Mohan Rajat Jain Pankaj Jain P.V.K. Mohan Managing the July 2011 September 2010 March 2004 January 2012 May 2010 Current Fund from Total Investment 8 years 19 years 23 years 10 years 19 years Experience Benchmark S&P BSE 100 Index S&P BSE 200 Index MSCI World Index Crisil MIP Blended Index Crisil Balanced Fund Index Minimum New Investor: ` 500 New Investor: ` 500 New Investor: ` 10,000 New Investor: ` 5,000 New Investor: ` 5,000 Application Amount Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 5,000 Existing Investor: ` 500 Existing Investor: ` 500 Cut Off Time# 3.00 pm 3.00 pm pm 3.00 pm 3.00 pm Exit Load Nil Nil If redeemed on or before 1 Year from the date of allotment - 1%. (including STP / SWP, if available) SIP Available SWP / STP Available after lock-in period Available Available Available Minimum No. & 6 installment of ` 500/- each. Amt. of SIP/SWP/STP (if available) # 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). 4

5 Fund 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 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Investment Plans / Regular Plan and Direct Plan. Options + 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 13 years 13 years 13 years 9 years 9 years Experience Benchmark I-Sec Composite Index Crisil Composite Bond Crisil Composite Bond CRISIL Short-Term Bond Crisil Liquid Fund Index 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: ` 500 Existing Investor: ` 500 Existing Investor: ` 1,000 Existing Investor: ` 500 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 From the date of allotment If redeemed on or before If redeemed on or before (including STP / SWP, before 1 Year from the if redeemed any time - 6 months from the 3 months from the if available) date of allotment - 1%. Upto 12 months - 2% date of allotment % date of allotment % From 12 months and upto 24 months - 1% After 24 months - Nil SIP / SWP / STP Available Available Available Available Available Minimum number 6 installment of ` 500/- each. 6 installment of 6 installment of 6 installment of & Amount of SIP/ SIP - ` 1,000/- each & ` 500/- each. SIP - ` 1,000/- each & SWP/STP (if available) SWP/STP - ` 500/- each. SWP/STP - ` 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). 5

6 Fund at a Glance (Contd.) DEBT SCHEMES LIQUID SCHEME* RETAIL SCHEMES Particulars Principal Debt Opportunities Principal Principal Retail Principal Debt Savings Fund - Principal Retail Equity Fund - Conservative Plan Cash Management Fund Money Manager Fund* ~ Retail Plan ~ Savings Fund ~ Nature of the An Open-ended An Open-ended An Open-ended Liquid An Open-ended Income Fund An Open-ended Scheme Debt Scheme Liquid Scheme Scheme Equity Scheme Allotment Date - Regular Plan September 14, 2004 August 30, 2004 December 28, 2007 December 30, 2003 January 7, Direct Plan January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 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 Regular Plan offers Dividend & Growth Option. Dividend & Growth Option. Dividend & Growth Option. Dividend ~ and Growth Option. Dividend ~ & Growth Option. Dividend Frequencies Dividend Frequency - Dividend Frequency - Dividend Frequency - Dividend Frequency - Direct Plan offers Daily / Weekly / Monthly Daily / Weekly / Monthly Regular Plan ~ : Daily / Monthly / Quarterly Growth Option. Weekly / Monthly. Dividend Option offers Direct Plan: Monthly facility of Payout, (Reinvestment) Reinvestment and Sweep. Fund Manager & Pankaj Jain Pankaj Jain Pankaj Jain Pankaj Jain P.V.K. Mohan Managing the January 2012 January 2012 January 2012 January 2012 October 2012 Current Fund from Total Investment 10 years 10 years 10 years 10 years 19 years Experience Benchmark Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Composite Bond Fund Index S&P BSE 100 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: ` 500 Existing Investor: ` 500 Cut Off Time Subscription # 3.00 pm 2.00 pm 2.00 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 Nil If redeemed within If redeemed on or before If redeemed on or before (including STP / SWP, 1 month from the 1 Year from the 1 Year from the if available) date of allotment % date of allotment - 1%. date of allotment - 1%. SIP Available Not Available Not Available Available Available SWP / STP Available Available Available Available Available Minimum number 6 installment of ` 500/- each. & Amount of SIP/ SWP/STP (if available) * 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 Principal Retail Money Manager Fund (b) Dividend Option under Principal Debt Savings Fund - Retail Plan and (c) Dividend Option under Principal Retail Equity Savings Fund, are not available for subscription/switch-in. + Effective January 1, 2013, new plan i.e. Direct Plan has been launched, for those investors who purchase/susbcribe units in a scheme directly with the Fund and not through a Distributor. Both Regular Plan & Direct Plan share a common portfolio. 6

7 Principal Large Cap Fund (An open-ended equity scheme) ` crore per unit (As on Mar. 28, 2013) Growth Option : ` ` Dividend Option : ` ` To provide capital appreciation and /or dividend distribution by predominantly investing in companies having a large market capitalization. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend June 24, July 28, February 5, May 15, 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 15.81% Beta^ 0.89 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 1.10 Expense Ratio (Regular Plan) #+ 2.40% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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. MARKET CAP ALLOCATION (As on Mar. 31, 2013) % of Equity & Equity Related Instruments of Large Cap Companies Equity & Equity Related Instruments of Mid Cap & Other Companies Cash & Other Assets 5.93 Instrument Industry % of Equity ITC Consumer Non Durables 7.33 Infosys Software 7.22 Reliance Industries Petroleum Products 6.57 ICICI Bank Banks 6.34 Housing Development Finance Corporation Finance 5.35 Jindal Steel & Power Ferrous Metals 4.93 Tata Motors Auto 4.58 Divi's Laboratories Pharmaceuticals 4.56 HCL Technologies Software 4.43 Shree Cements Cement 3.96 Oracle Financial Services Software Software 3.74 HDFC Bank Banks 3.42 Bharat Petroleum Corporation Petroleum Products 2.83 State Bank of India Banks 2.74 NHPC Power 2.46 Oil & Natural Gas Corporation Oil 2.22 Canara Bank Banks 2.02 Motherson Sumi Systems Auto Ancillaries 1.82 Idea Cellular Telecom - Services 1.80 LIC Housing Finance Finance 1.66 Aditya Birla Nuvo Services 1.50 Bharti Airtel Telecom - Services 1.31 Oil India Oil 1.25 Larsen & Toubro Construction Project 1.22 NMDC Minerals/Mining 1.09 Cairn India Oil 1.02 Axis Bank Banks 0.99 Hindustan Unilever Consumer Non Durables 0.99 Sun TV Network Media & Entertainment 0.83 Jaiprakash Power Ventures Power 0.76 Wipro Software 0.73 Maruti Suzuki India Auto 0.71 Jet Airways (India) Transportation 0.67 Indian Oil Corporation Petroleum Products 0.41 Hindustan Petroleum Corporation Petroleum Products 0.37 Power Finance Corporation Finance 0.24 Cash and Other Assets 5.93 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Software Banks 16.12% 15.51% Petroleum Products 10.18% Consumer Non Durables Finance 8.32% 7.25% Auto Ferrous Metals Pharmaceuticals Oil Cement 5.29% 4.93% 4.56% 4.49% 3.96% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 7

8 Principal Emerging Bluechip Fund (An open-ended equity scheme) ` crore per unit (As on Mar. 28, 2013) Growth Option : ` ` Dividend Option : ` ` To achieve long-term capital appreciation by investing in equity & equity related instruments of Mid Cap & Small Cap companies. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend October 15, June 19, 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 19.11% Beta^ 0.90 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 0.56 Expense Ratio (Regular Plan) #+ 2.43% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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. MARKET CAP ALLOCATION (As on Mar. 31, 2013) % of Equity and equity related instruments of Mid Cap Companies Equity and equity related instruments of Small Cap Companies Equity and equity related instruments of Companies other than Mid & Small Cap 3.08 Cash and Money Market / Fixed Income Securities (including MIBOR Linked Short Term Papers & Securitised Debt) 0.39 Market Cap Range for CNX Midcap Stocks As on December 31, 2012 ` 57, Cr ` 2, Crs Instrument Industry % of Equity Amara Raja Batteries Auto Ancillaries 4.43 Shree Cements Cement 3.39 The Federal Bank Banks 3.14 ING Vysya Bank Banks 3.08 ICICI Bank Banks 3.08 Apollo Tyres Auto Ancillaries 2.95 The Jammu & Kashmir Bank Banks 2.93 HCL Technologies Software 2.90 Godrej Consumer Products Consumer Non Durables 2.75 Divi s Laboratories Pharmaceuticals 2.70 Sadbhav Engineering Construction Project 2.60 Satyam Computer Services Software 2.44 Torrent Pharmaceuticals Pharmaceuticals 2.39 Cummins India Industrial Products 2.33 LIC Housing Finance Finance 2.23 Kaveri Seed Company Consumer Non Durables 2.14 Union Bank of India Banks 2.08 Yes Bank Banks 1.98 Eicher Motors Auto 1.96 Lupin Pharmaceuticals 1.92 JK Cement Cement 1.89 Titan Industries Consumer Durables 1.83 Glenmark Pharmaceuticals Pharmaceuticals 1.76 Aditya Birla Nuvo Services 1.74 Motherson Sumi Systems Auto Ancillaries 1.71 Hindustan Petroleum Corporation Petroleum Products 1.69 Oracle Financial Services Software Software 1.69 Tata Chemicals Chemicals 1.69 Sun TV Network Media & Entertainment 1.68 Oil India Oil 1.66 Asian Paints Consumer Non Durables 1.62 Max India Finance 1.60 Gateway Distriparks Transportation 1.56 IPCA Laboratories Pharmaceuticals 1.56 Hathway Cable & Datacom Media & Entertainment 1.52 Godrej Industries Chemicals 1.48 Tata Global Beverages Consumer Non Durables 1.45 Prestige Estates Projects Construction 1.37 Symphony Consumer Durables 1.36 Arvind Textile Products 1.31 KEC International Power 1.16 Petronet LNG Gas 1.14 Dish TV India Media & Entertainment 1.05 MT Educare Diversified Consumer Services 1.02 GlaxoSmithKline Consumer Healthcare Consumer Non Durables 1.01 Aurobindo Pharma Pharmaceuticals 0.98 Power Finance Corporation Finance 0.95 Graphite India Industrial Products 0.95 Spicejet Transportation 0.94 Gujarat Mineral Development Corporation Minerals/Mining 0.92 Bata India Consumer Durables 0.92 Jet Airways (India) Transportation 0.87 Oriental Bank of Commerce Banks 0.86 Pantaloon Retail (India) Retailing 0.64 Indraprastha Gas Gas 0.61 Cash and Other Assets 0.39 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Banks 17.15% Pharmaceuticals 11.31% Auto Ancillaries Consumer Non Durables 9.09% 8.97% Software 7.03% Cement Finance Media & Entertainment Consumer Durables Transportation 5.28% 4.78% 4.25% 4.11% 3.37% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 8

9 Principal Growth Fund (An open-ended equity scheme) ` crore per unit (As on Mar. 28, 2013) Growth Plan : ` ` Dividend Plan : ` ` To achieve long-term capital appreciation. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend December 31, March 20, 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 17.73% Beta^ 0.98 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 1.34 Expense Ratio (Regular Plan) #+ 2.46% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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 Equity ITC Consumer Non Durables 7.10 ICICI Bank Banks 6.53 Reliance Industries Petroleum Products 5.04 HCL Technologies Software 4.12 HDFC Bank Banks 3.24 Infosys Software 3.21 Jet Airways (India) Transportation 2.96 Oracle Financial Services Software Software 2.70 State Bank of India Banks 2.41 Lupin Pharmaceuticals 2.31 Housing Development Finance Corporation Finance 2.20 Motherson Sumi Systems Auto Ancillaries 2.19 Havells India Consumer Durables 2.18 Titan Industries Consumer Durables 2.03 The Federal Bank Banks 1.98 Tata Motors Auto 1.95 Maruti Suzuki India Auto 1.83 Jain Irrigation Systems Industrial Products 1.56 IDFC Finance 1.55 Prestige Estates Projects Construction 1.51 Jaiprakash Power Ventures Power 1.39 ING Vysya Bank Banks 1.38 Aurobindo Pharma Pharmaceuticals 1.32 Bharat Petroleum Corporation Petroleum Products 1.30 IPCA Laboratories Pharmaceuticals 1.30 Raymond Textile Products 1.17 Hathway Cable & Datacom Media & Entertainment 1.15 Tata Motors Auto 1.13 Sterlite Industries (India) Non - Ferrous Metals 1.13 JK Cement Cement 1.13 NIIT Technologies Software 1.12 Alembic Pharmaceuticals Pharmaceuticals 1.12 Indiabulls Power Power 1.11 Zee Entertainment Enterprise Media & Entertainment 1.11 Union Bank of India Banks 1.10 Aditya Birla Nuvo Services 1.09 Idea Cellular Telecom - Services 1.09 Axis Bank Banks 1.05 Godrej Industries Chemicals 1.04 Bank of Baroda Banks 1.03 The India Cements Cement 1.03 Divi s Laboratories Pharmaceuticals 1.01 Chambal Fertilizers & Chemicals Fertilisers 1.01 Larsen & Toubro Construction Project 0.98 Cairn India Oil 0.94 Power Finance Corporation Finance 0.94 Gujarat Mineral Development Corporation Minerals/Mining 0.92 Oriental Bank of Commerce Banks 0.90 Oil India Oil 0.89 Jubilant Life Sciences Pharmaceuticals 0.89 Jindal Steel & Power Ferrous Metals 0.87 Torrent Pharmaceuticals Pharmaceuticals 0.84 Ambuja Cements Cement 0.84 Eros International Media Media & Entertainment 0.76 NMDC Minerals/Mining 0.73 Infinite Computer Solutions (India) Software 0.55 PC Jeweller Consumer Durables 0.53 Dish TV India Media & Entertainment 0.49 Sun TV Network Media & Entertainment 0.49 Pantaloon Retail (India) Retailing 0.47 Jaiprakash Associates Cement 0.44 Milestone Global Ltd Construction Materials 0.03 Cash and Other Assets 1.59 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Banks 19.62% Software 11.70% Pharmaceuticals Consumer Non Durables Petroleum Products Auto Consumer Durables Finance Media & Entertainment Cement 8.79% 7.10% 6.34% 4.91% 4.74% 4.69% 4.00% 3.44% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 9

10 Principal Dividend Yield Fund (An open-ended equity scheme) ` crore per unit (As on Mar. 28, 2013) Growth Plan : ` ` Dividend Plan : ` ` 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 Dividend (`/Unit)* Cum Dividend October 12, April 24, October 3, April 20, * 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 17.95% Beta^ 1.05 Sharpe Ratio^ (Annualised) 0.01 Portfolio Turnover Ratio** 0.51 Expense Ratio (Regular Plan) #+ 2.57% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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 Equity ITC Consumer Non Durables 5.43 The Jammu & Kashmir Bank Banks 3.94 Tata Motors Auto 3.75 ICICI Bank Banks 3.51 NIIT Technologies Software 3.51 Bajaj Holdings & Investment Finance 3.48 Oil & Natural Gas Corporation Oil 3.40 VST Industries Consumer Non Durables 3.34 State Bank of India Banks 2.83 Gujarat Industries Power Company Power 2.74 Sun TV Network Media & Entertainment 2.71 HCL Technologies Software 2.53 Gateway Distriparks Transportation 2.41 Bajaj Auto Auto 2.25 Colgate Palmolive (India) Consumer Non Durables 2.18 Bank of Baroda Banks 2.07 Cummins India Industrial Products 2.05 Union Bank of India Banks 2.02 Hindustan Petroleum Corporation Petroleum Products 1.87 Hinduja Ventures Media & Entertainment 1.84 Tata Chemicals Chemicals 1.84 JK Cement Cement 1.84 Hero MotoCorp Auto 1.75 Oil India Oil 1.75 Castrol India Petroleum Products 1.73 Zensar Technologies Software 1.65 Tata Global Beverages Consumer Non Durables 1.64 National Buildings Construction Corpn. Construction 1.63 Karur Vysya Bank Banks 1.47 Rural Electrification Corporation Finance 1.46 Tata Steel Ferrous Metals 1.45 Power Finance Corporation Finance 1.44 Tata Consultancy Services Software 1.37 Reliance Industries Petroleum Products 1.31 NTPC Power 1.30 Bharat Petroleum Corporation Petroleum Products 1.20 Jagran Prakashan Media & Entertainment 1.12 ACC Cement 1.10 Kolte - Patil Developers Construction 1.09 Oriental Bank of Commerce Banks 1.06 Tamil Nadu Newsprint & Papers Paper 1.06 Mcleod Russel India Consumer Non Durables 1.05 Supreme Industries Industrial Products 1.04 Allahabad Bank Banks 1.00 Kirloskar Oil Engines Industrial Products 0.98 IPCA Laboratories Pharmaceuticals 0.96 The South Indian Bank Banks 0.94 Cairn India Oil 0.93 Repro India Media & Entertainment 0.91 Syndicate Bank Banks 0.72 LIC Housing Finance Finance 0.61 IDBI Bank Banks 0.61 SML Isuzu Auto 0.56 Chambal Fertilizers & Chemicals Fertilisers 0.54 Dena Bank Banks 0.54 Infinite Computer Solutions (India) Software 0.38 Volant Textile Mills Textile - Cotton 0.13 Cash and Other Assets SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Banks 20.71% Consumer Non Durables 13.64% Software 9.44% Auto 8.31% Finance 6.99% Media & Entertainment 6.58% Petroleum Products 6.11% Oil 6.08% Industrial Products 4.07% Power 4.04% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 10

11 Principal Index Fund (An open-ended index scheme) ` crore per unit (As on Mar. 28, 2013) Growth Plan : ` ` Dividend Plan : ` ` To invest principally in securities that comprise S&P 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 17.36% Beta^ 1.00 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 2.41 Expense Ratio (Regular Plan) #+ 0.52% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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 0.90%* * Trailing 12 months ended Mar. 31, 2013 (Annualized). Instrument Industry % of Equity ITC Consumer Non Durables 9.25 Infosys Software 7.62 Housing Development Finance Corporation Finance 6.96 Reliance Industries Petroleum Products 6.94 ICICI Bank Banks 6.59 HDFC Bank Banks 6.25 Tata Consultancy Services Software 4.39 Larsen & Toubro Construction Project 4.04 Oil & Natural Gas Corporation Oil 3.02 State Bank of India Banks 2.93 Hindustan Unilever Consumer Non Durables 2.62 Tata Motors Auto 2.60 Axis Bank Banks 2.24 Mahindra & Mahindra Auto 2.16 Bharti Airtel Telecom - Services 1.91 Sun Pharmaceuticals Industries Pharmaceuticals 1.69 NTPC Power 1.59 Kotak Mahindra Bank Banks 1.35 Bajaj Auto Auto 1.32 Dr. Reddy s Laboratories Pharmaceuticals 1.23 Asian Paints Consumer Non Durables 1.22 Wipro Software 1.20 HCL Technologies Software 1.15 Tata Steel Ferrous Metals 1.14 Coal India Minerals/Mining 1.07 Cipla Pharmaceuticals 1.06 Ultratech Cement Cement 1.04 Grasim Industries Cement 0.98 IDFC Finance 0.97 Maruti Suzuki India Auto 0.93 Cairn India Oil 0.88 Tata Power Company Power 0.86 Lupin Pharmaceuticals 0.82 Power Grid Corporation of India Power 0.81 Hero MotoCorp Auto 0.80 GAIL (India) Gas 0.78 Bharat Heavy Electricals Industrial Capital Goods 0.76 Ambuja Cements Cement 0.73 Jindal Steel & Power Ferrous Metals 0.72 Hindalco Industries Non - Ferrous Metals 0.65 Bank of Baroda Banks 0.62 ACC Cement 0.59 Bharat Petroleum Corporation Petroleum Products 0.53 Punjab National Bank Banks 0.52 DLF Construction 0.47 Jaiprakash Associates Cement 0.43 Ranbaxy Laboratories Pharmaceuticals 0.37 Sesa Goa Minerals/Mining 0.33 Siemens Industrial Capital Goods 0.26 Reliance Infrastructure Power 0.24 Cash and Other Assets 0.37 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Banks 20.50% Software Consumer Non Durables 14.36% 13.09% Finance Auto Petroleum Products 7.93% 7.81% 7.47% Pharmaceuticals Construction Project Oil Cement 5.17% 4.04% 3.90% 3.77% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 11

12 Principal SMART Equity Fund (An open-ended equity scheme) ` crore per unit (As on Mar. 28, 2013) Growth Plan : ` ` Dividend Plan : ` ` 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. RATIOS & OTHER DETAILS (As on Mar. 31, 2013) Portfolio Turnover Ratio** 1.05 Expense Ratio (Regular Plan) #+ 2.55% ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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/Rating % of Equity Infosys Software 6.74 ITC Consumer Non Durables 6.32 Reliance Industries Petroleum Products 5.62 ICICI Bank Banks 5.46 Housing Development Finance Corporation Finance 4.59 Jindal Steel & Power Ferrous Metals 4.20 Divi s Laboratories Pharmaceuticals 3.92 Tata Motors Auto 3.92 HCL Technologies Software 3.81 Shree Cements Cement 3.41 Oracle Financial Services Software Software 3.19 HDFC Bank Banks 2.92 Bharat Petroleum Corporation Petroleum Products 2.41 State Bank of India Banks 2.33 NHPC Power 1.91 Oil & Natural Gas Corporation Oil 1.91 Canara Bank Banks 1.72 Motherson Sumi Systems Auto Ancillaries 1.55 Idea Cellular Telecom - Services 1.54 LIC Housing Finance Finance 1.41 Aditya Birla Nuvo Services 1.28 Bharti Airtel Telecom - Services 1.13 Larsen & Toubro Construction Project 1.08 Oil India Oil 1.07 NMDC Minerals/Mining 0.93 Cairn India Oil 0.87 Axis Bank Banks 0.85 Hindustan Unilever Consumer Non Durables 0.85 Sun TV Network Media & Entertainment 0.70 Jaiprakash Power Ventures Power 0.65 Wipro Software 0.63 Maruti Suzuki India Auto 0.60 Jet Airways (India) Transportation 0.57 Indian Oil Corporation Petroleum Products 0.35 Hindustan Petroleum Corporation Petroleum Products 0.31 Power Finance Corporation Finance 0.20 Certificate of Deposit 2.46 State Bank of Patiala A Commercial Paper JM Financial Products A Power Finance Corporation A BONDS & NCDs 3.64 Tata Capital Financial Services AA Cash and Other Assets 1.25 SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on Mar. 31, 2013) Software 14.37% Banks 13.28% Petroleum Products 8.69% Consumer Non Durables 7.17% Finance 6.20% Auto 4.52% Ferrous Metals 4.20% Pharmaceuticals 3.92% Oil 3.85% Cement 3.41% 0.00% 4.00% 8.00% 12.00% 16.00% (% of ) 12

13 Principal Personal Tax Saver Fund (An open-ended equity linked savings scheme) ` crore per unit (As on Mar. 28, 2013) Direct Plan: ` Regular Plan: ` To provide long term growth of capital. The Investment Manager will aim to achieve a return on assets in excess of the performance of 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 16.58% Beta^ 0.93 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 1.07 Expense Ratio (Regular Plan) #+ 2.38% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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 Equity ITC Consumer Non Durables 7.41 Infosys Software 7.30 Reliance Industries Petroleum Products 6.65 ICICI Bank Banks 6.41 Housing Development Finance Corporation Finance 5.41 Jindal Steel & Power Ferrous Metals 4.98 Tata Motors Auto 4.64 Divi's Laboratories Pharmaceuticals 4.59 HCL Technologies Software 4.49 Shree Cements Cement 4.00 Oracle Financial Services Software Software 3.79 HDFC Bank Banks 3.46 Free Accidental Death Insurance 150 times the number of units## Bharat Petroleum Corporation Petroleum Products 2.86 State Bank of India Banks 2.77 NHPC Power 2.41 Oil & Natural Gas Corporation Oil 2.23 Canara Bank Banks 2.05 Motherson Sumi Systems Auto Ancillaries 1.84 Idea Cellular Telecom - Services 1.82 LIC Housing Finance Finance 1.68 Aditya Birla Nuvo Services 1.52 Bharti Airtel Telecom - Services 1.32 Oil India Oil 1.26 Larsen & Toubro Construction Project 1.23 NMDC Minerals/Mining 1.10 Cairn India Oil 1.03 Axis Bank Banks 1.00 Hindustan Unilever Consumer Non Durables 1.00 Sun TV Network Media & Entertainment 0.84 Jaiprakash Power Ventures Power 0.77 Wipro Software 0.74 Maruti Suzuki India Auto 0.72 Jet Airways (India) Transportation 0.68 Indian Oil Corporation Petroleum Products 0.42 Hindustan Petroleum Corporation Petroleum Products 0.37 Power Finance Corporation Finance 0.24 Cash and Other Assets 4.97 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Software Banks 16.32% 15.69% Petroleum Products 10.30% Consumer Non Durables Finance 8.41% 7.33% Auto Ferrous Metals Pharmaceuticals Oil Cement 5.36% 4.98% 4.59% 4.52% 4.00% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) ## Conditions Apply. Also, subject to a maximum of ` 1 lakh. 13

14 Principal Tax Savings Fund (An open-ended equity linked savings scheme) (Close for subscription) ` crore per unit (As on Mar. 28, 2013) Direct Plan: ` Regular Plan: ` 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 March 31, 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 Mar. 31, 2013) Standard Deviation^ (Annualised) 17.54% Beta^ 0.97 Sharpe Ratio^ (Annualised) Portfolio Turnover Ratio** 1.09 Expense Ratio (Regular Plan) #+ 2.20% Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 8.19% risk free rate of return (91 days - T Bill Rate as on March 26, 2013). ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. # 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 Equity ITC Consumer Non Durables 7.07 ICICI Bank Banks 6.42 Reliance Industries Petroleum Products 5.02 HCL Technologies Software 4.18 Infosys Software 3.26 HDFC Bank Banks 3.22 Jet Airways (India) Transportation 2.97 Oracle Financial Services Software Software 2.69 State Bank of India Banks 2.38 Lupin Pharmaceuticals 2.33 Havells India Consumer Durables 2.19 Motherson Sumi Systems Auto Ancillaries 2.18 Housing Development Finance Corporation Finance 2.16 Titan Industries Consumer Durables 2.03 The Federal Bank Banks 1.98 Tata Motors Auto 1.96 Maruti Suzuki India Auto 1.85 Jain Irrigation Systems Industrial Products 1.55 Prestige Estates Projects Construction 1.43 Jaiprakash Power Ventures Power 1.39 ING Vysya Bank Banks 1.37 Aurobindo Pharma Pharmaceuticals 1.32 IDFC Finance 1.31 IPCA Laboratories Pharmaceuticals 1.30 Bharat Petroleum Corporation Petroleum Products 1.30 Free Personal Accident Death Insurance upto ` 5 lacs ## Raymond Textile Products 1.16 Hathway Cable & Datacom Media & Entertainment 1.14 Tata Motors Auto 1.13 JK Cement Cement 1.13 Sterlite Industries ( India ) Non - Ferrous Metals 1.13 Indiabulls Power Power 1.12 Alembic Pharmaceuticals Pharmaceuticals 1.12 NIIT Technologies Software 1.12 Zee Entertainment Enterprise Media & Entertainment 1.11 Union Bank of India Banks 1.10 Idea Cellular Telecom - Services 1.09 Aditya Birla Nuvo Services 1.09 Axis Bank Banks 1.05 Bank of Baroda Banks 1.04 Godrej Industries Chemicals 1.04 The India Cements Cement 1.02 Divi's Laboratories Pharmaceuticals 1.02 Torrent Pharmaceuticals Pharmaceuticals 1.02 Chambal Fertilizers & Chemicals Fertilisers 0.99 Larsen & Toubro Construction Project 0.99 Cairn India Oil 0.94 Power Finance Corporation Finance 0.93 Gujarat Mineral Development Corporation Minerals/Mining 0.92 Oil India Oil 0.90 Jubilant Life Sciences Pharmaceuticals 0.90 Oriental Bank of Commerce Banks 0.90 Jindal Steel & Power Ferrous Metals 0.87 Ambuja Cements Cement 0.83 Eros International Media Media & Entertainment 0.75 NMDC Minerals/Mining 0.72 Infinite Computer Solutions (India) Software 0.54 PC Jeweller Consumer Durables 0.53 Dish TV India Media & Entertainment 0.49 Sun TV Network Media & Entertainment 0.48 Pantaloon Retail (India) Retailing 0.47 Jaiprakash Associates Cement 0.44 Cash and Other Assets 1.92 SECTOR ALLOCATION (TOP 10) (As on Mar. 31, 2013) Banks 19.46% Software 11.79% Pharmaceuticals Consumer Non Durables Petroleum Products Auto Consumer Durables Finance Media & Entertainment Cement 9.01% 7.07% 6.32% 4.94% 4.75% 4.40% 3.97% 3.42% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) ## Conditions Apply. Note: In terms of enabling provisions of the SID, post 3.00 p.m of September 2, 2011, fresh sale of units (by way of Purchase or Switch-ins) under the scheme has been suspended (refer notice-cum addendum no. 15/2011 dated August 30, 2011) 14

15 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.) ` crore per unit (As on Mar. 28, 2013) Growth Plan : ` ` Dividend Plan (Monthly): ` ` Dividend Plan (Quarterly): ` ` 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 22, ^ ^ February 22, January 24, Quarterly Dividend (Last 3 Quarters) March 22, December 24, September 24, * On face value of ` 10. ^ Record Date as on March 26, 2013 Past performance may or may not be sustained in the future. Note: All Dividend (`/Unit) figures are Gross Dividend. Bonds & NCDs Cholamandalam Investment and Finance Company AA Sundaram Finance AA Exim Bank AAA State Bank of Mysore AAA 7.06 Tata Sons AAA 5.67 Power Grid Corporation of India AAA 4.30 Fullerton India Credit Company AA Dr. Reddy's Laboratories AA Mutual Fund Units 9.73 Principal Index Fund - Regular Plan - Growth Option Mutual Funds 9.73 Cash and Other Assets 3.58 COMPOSITION BY ASSETS (As on Mar. 31, 2013) Industry / Ratings % of Bonds & NCDs Mutual Fund Units 9.73 Commercial Paper 5.56 Certificate of Deposit 4.20 Equity 1.53 Treasury Bill 0.28 Cash & Cash Equivalents 3.58 RATING PROFILE (As on Mar. 31, 2013) RATIO (As on Mar. 31, 2013) AAA 31.07% Portfolio Turnover Ratio** 0.03 AA % ** Portfolio Turnover Ratio is calculated as lower of sales or purchases divided by average AUM for last rolling 12 months. AA A % 19.70% AVERAGE MATURITY (As on Mar. 31, 2013) 2.4 years Sovereign Cash & Other Assets (incl. Equity & MF Units) 0.28% 14.84% MODIFIED DURATION (As on Mar. 31, 2013) 1.6 years 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% (% of ) Instrument Industry/Rating % of Equity 1.53 Jet Airways (India) Transportation 1.53 Certificate of Deposit 4.20 Yes Bank A Commercial Paper 5.56 Piramal Enterprises A Treasury Bill 0.28 T-Bill 364 Days 17-May-2013 Sovereign