Give your investments the Right Balance!

Transcription

1 May, 2017 Give your investments the Right Balance! Invest in Principal Balanced Fund. A fund that seeks to give the best of both worlds i.e. Capital appreciation through Equity exposure and Regular Income with low volatility through Fixed Income investment. Balanced Fund AN OPEN- ENDED BALANCED SCHEME Principal Balanced Fund (An Open-Ended Balanced Scheme) This Product Is Suitable For Investors Who Are Seeking~ - Income and Long term Capital Growth. Investment in equity & equity related securities, debt/money market securities as well as derivatives. ~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

2 PRODUCT SUITABILITY Scheme Names This product is suitable for investors who are seeking ~ RISKOMETER Pg. No. Principal Large Cap Fund Long term Capital Growth. Investment in equity & equity related securities 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 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 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 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 including 12 (An Open-ended Index Scheme) equity derivatives of Nifty 50 Companies. Principal SMART Equity Fund Long term Capital Growth. Investment in equity & equity related securities 13 (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 Nifty 50. Principal Arbitrage Fund Income over short-term. Income through arbitrage opportunities between 14 (An Open-ended Equity Scheme) cash and derivative market and arbitrage opportunities within the derivative segment. Principal Personal Tax Saver Fund Long term Capital Growth with a three year lock-in. 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. 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 17 (An Open-ended Balanced Scheme) related securities, debt/money market securities as well as derivatives. Principal Equity Savings Fund Income generation and capital appreciation over the medium to long term. 18 (An Open-ended Equity Scheme) Investment in equity and equity related instruments, debt and money market instruments and arbitrage opportunities. Principal Debt Savings Fund Income over a long term investment horizon. 19 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. Principal Government Securities Fund Income over a long term investment horizon. 20 (An Open-ended dedicated Gilt Scheme Investment in Government Securities. investing in Government Securities) Principal Dynamic Bond Fund Income over a long term investment horizon. 21 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. Principal Credit Opportunities Fund Income over a long term investment horizon. 22 (An Open-ended Debt Scheme) Investment in Debt & Money Market Instruments of Private & Public Sector Companies. Principal Short Term Income Fund Income over a medium term investment horizon. 23 (An Open-ended Income Scheme) Investment in Debt & Money Market Instruments. Principal Low Duration Fund Income over a short term investment horizon. 24 (An Open-ended Debt Scheme) Investment in Debt & Money Market Instruments. Principal Money Manager Fund Income over a short term investment horizon. 25 (An Open-ended Money Market Scheme) Investment in Money Market Instruments. Principal Global Opportunities Fund Long term Capital Growth. 25 (An Open-ended Fund of Funds Scheme) Investment in overseas mutual fund schemes. Principal Cash Management Fund Income over a short term investment horizon. 26 (An Open-ended Liquid Scheme) Investment in Debt & Money Market Instruments, with maturity not exceeding 91 days. Principal Asset Allocation Fund-of-Funds - Income and Capital growth over a long term investment horizon. 27 Conservative Plan Investment primarily in debt/money market mutual funds with some (An open-ended Fund-of-Funds Scheme) exposure to equity mutual funds. Principal Asset Allocation Fund-of-Funds - Capital growth and Income over a long term investment horizon. 27 Moderate Plan Investment in a basket of equity mutual funds, debt/money market (An open-ended Fund-of-Funds Scheme) mutual funds and Gold ETFs. Principal Asset Allocation Fund-of-Funds - Capital growth over a long term investment horizon. 27 Aggressive Plan Investment primarily in equity mutual funds with some allocation to (An open-ended Fund-of-Funds Scheme) debt/money market mutual funds and Gold ETFs. ~ Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

3 Fund Manager Commentary Debt Markets May 2017 Fixed Income Market Update: May 2017 Key Market Highlights: During the month we saw a mixed movement in the various fixed income asset classes. While short term CD and T bill rates rose, Gilt and corporate bond yields fell across the curve. Fall in inflation as measured by CPI and WPI, fall in global bond yields, announcement of new ten yr benchmark, FII purchases in debt and expectations of GST being anti-inflationary were the main reasons. The GST Council fixed rates on almost all of the goods and services along with the cess to be levied on luxury/demerit goods. According to government estimates, the GST rates should lower inflation by 2 percentage points (pp) after their implementation. During the month government introduced a new ten year benchmark gilt at 6.79% in primary auction. Subsequently as yields came down the benchmark closed the month at 6.66%. The old ten year benchmark gilt closed at 6.79%, 15 bps lower from previous month. The ten year AAA Corporate bond benchmark closed at 7.83%, 4 bps lower than previous month. The five year AAA corporate bond benchmark closed at 7.58%, 12 bps lower as compared to previous month. Currently SDL spreads are trading around 90 bps to the new gilt benchmark. 1 year CD rates closed at 6.72%, 10 bps higher than previous month. 1 year T bill yield increased by 3 bps to close at 6.44%. 3 months CD rates closed at 6.35%. 3 months T bill yields rose to 6.28%, 11 bps higher than previous month. Brent Crude oil prices remained stable at USD barrel. INR marginally depreciated and closed the month around as compared to the previous month. Trade deficit in April was at US$13.2 bn, higher than US$10.4 bn in March For the month of May, FIIs were net buyers in the debt market to the tune of Rs crore approx. April WPI data release came at 3.85% as compared to 5.29% in previous month. Base Year has been changed to from and hence the Index has undergone change for WPI and IIP. CPI for April came at 2.99% compared to 3.89% in previous month. The GDP release for fourth quarter of FY 2017 (Jan to March) showed a sharp slowdown as Real GDP printed at 6.1% as compared to 7% in previous quarter and GVA growth came in at 5.6% as compared to 6.7% in previous quarter. For the full year FY 2017 GDP growth has come in at 7.1%. The GDP release in the fourth quarter reflects the lagged impact of demonetization and cash shortage. March Industrial production (IIP) growth came at 2.7%. Banking system liquidity remained well in surplus mode. RBI conducted long dated (300 day plus) T bill auctions as well as short dated CMBs under MSS. Banking system averaged a surplus of Rs 3.25 lakh crore at various RBI liquidity facilities put together. Outlook: As expected RBI kept key rates on hold on June 7 monetry policy. We expect banking system liquidity to remain in surplus zone although the quantum of surplus is expected to reduce in a range of Rs 2.5 to 3 lakh crore. The ten year benchmark g sec yield is expected to trade in a range of % during the month. The five year AAA Corporate bond benchmark is expected to trade in a range of 7.40%-7.75%. Short term Money market rates are expected to remain stable on back of low CD issuance and surplus banking system liquidity. The ten year benchmark US treasury yield ended 9 bps lower at 2.20%. 3

4 Fund Manager Commentary Equity Markets May 2017 Review of Equity Markets for the month of May The NSE Nifty index was up 3.4% during the month of May. However, unlike the preceding few months, the mid cap and small cap indices were negative for the month, giving up some of their outperformance over the large cap indices. Globally, the Emerging markets continued to do better than the Developed markets. The MSCI EM (USD) index was up 2.8% during the month, while the Developed market index was up 1.8%. Strong performance in EM space was widespread, with a number of countries outperforming India. Fund flows into EMs have remained strong, with nearly USD 9.3 Billion coming into EM equity funds during the month. With this, CYTD 2017 offshore inflows into EM equity have gone up to USD 32.1 Billion. India received inflows of about USD 1.5 Billion from FIIs during the month, taking the CYTD total to about USD 7.9 Billion. In line with past trends, mutual funds were net buyers (of USD 1.4 Billion), while insurance companies were sellers during the month. The performance of various sectoral indices is listed below. The FMCG and the auto indices did well during the month, while the weak performance of the healthcare index stood out. The FMCG and auto indices did well as markets expect that an improving rural economy as a result of increased government focus and good rains in the last year (except in parts of South India) would be positive for them. Further, the Met department has forecast normal rains for the current year. The auto sales remained decent in May with passenger vehicle sales growing 9% yoy (after a strong 15% yoy growth in April). Secondly, as the GST rates were announced, for many of the articles in the FMCG sector the rates were slightly lower than the current rates. Likewise, for the auto sector too, the rates were along expected lines with no major negative surprises. The pharmaceuticals companies were impacted by a weak pricing environment for generics as a result of PERFORMANCE AS ON MAY 31, 2017* Index 1 Month 3 Months 6 Months 1 Year (%) (%) (%) (%) Broad Markets Nifty 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 CD S&P BSE CG S&P BSE FMCG S&P BSE HC S&P BSE METAL S&P BSE Oil & Gas S&P BSE PSU S&P BSE Teck *Performance for less than one year are absolute returns. Source - MFI Explorer heightened competition (esp. in the US). The IT sector was steady in the month supported by valuations which are at a discount to the market. The Rupee was virtually flat (down 0.4%) during the month, while crude oil prices were down about 2.7%. Prices of precious commodities were flat during the month. In macroeconomic news, the Q4, FY 17 GDP surprised negatively, growing at 6.1% yoy, while consensus expectations were for a growth rate of 7.1%. The core GVA (Gross Value Added) slowed from 7.6% in H1 FY 17 to 4.9% in H2. Government spending was strong in Q4, growing 32% yoy. Excluding government spending, the GDP growth was 4% yoy for Q4, FY 17. Real estate and construction were particularly hit. According to Nomura economists however, the economy in the current quarter is recovering led by recovery in rural consumption, external tailwinds and better infrastructure sector output growth and GDP growth is expected to come back in the second half of the year. The CPI for April came in at 3% (March 3.9%). This was helped both by a stronger currency impacting commodity prices and steady food prices (with pulses being particularly weak). The WPI was at 3.9% in April (March 5.3%) led by food and fuel prices. The trade deficit for the month of April was USD Billion, much higher than about USD 10 Billion which has been the average level in the recent past. The exports were lower 15% mom which is usual as March numbers are usually strong, but they were up 20% yoy. Imports however, were up 49% yoy as non-oil, non-gold imports continued to grow. The earnings for the Q4, FY17 were good for the metals and financials sector as a result of the low base. Going forward, the markets will watch for the GST roll out which is scheduled for July 1. Anecdotally, however, registration for the smaller traders and those in the upcountry areas are yet work in progress. There could be near term disruption in the supply chain as retailers may cut down on inventory going into July as there could be some potential concerns on input credit. As such, there may be slowdown in production in June which should reverse as the supply chain gets replenished post July. 4

5 Funds at a Glance EQUITY SCHEMES Particulars Principal Principal Emerging Principal Principal Principal Large Cap Fund Bluechip Fund Growth Fund Dividend Yield Fund Index Fund - Nifty $ Nature of the 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 Allotment Date - Regular Plan November 11, 2005 November 12, 2008 October 25, 2000 October 15, 2004 July 27, Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 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 & Rajat Jain Dhimant Shah P.V.K. Mohan Dhimant Shah Rajat Jain Managing the September 2016 June 2011 September 2010 December 2011 August 2015 Current Fund from Total Investment 28 years 25 years 23 years 25 years 28 years Experience Benchmark S&P BSE 100 Index Nifty Free Float S&P BSE 200 Index Nifty Dividend Nifty 50 Index Midcap 100 Index Opportunities 50 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# 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 Principal Personal Principal Principal Principal SMART Equity Fund Arbitrage Fund Tax Saver Fund** Tax Savings Fund Balanced Fund Equity Savings Fund Nature of the An Open-ended An Open-ended An Open-ended Equity An Open-ended Equity An Open-ended An Open-ended Scheme Equity Scheme Equity Scheme Linked Savings Scheme Linked Savings Scheme Balanced Scheme Equity Scheme Allotment Date - Regular Plan December 16, 2010 April 21, 2016 March 31, 1996 March 31, 1996 January 14, 2000 May 23, Direct Plan January 2, 2013 April 21, 2016 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 & Direct Plan. Regular Plan & Direct Plan. Regular Plan & Direct Plan. Options Both the Plans offer Growth & 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 Monthly Dividend Option. Monthly* Dividend Option. any options at present. any options at present. Monthly Dividend Option. Growth & Half yearly and Monthly Dividend Option Monthly* Dividend Option Monthly Dividend Option Quarterly Dividend Option. under both the Plans offers under both the Plans offers under both the Plan offers facility of Payout, facility of Payout, facility of Payout, Reinvestment and Sweep. Reinvestment and Sweep. Reinvestment and Sweep. Fund Manager & Rajat Jain Rajat Jain Rajat Jain P.V.K. Mohan P.V.K. Mohan - May 2010 / P.V.K. Mohan Managing the September 2016 April 2016 September 2016 September 2010 Bekxy Kuriakose - Mar 2016 June 2016 Current Fund from Total Investment 28 years 28 years 28 years 23 years 23 years / 23 years Experience 16 years Benchmark Crisil Balanced Fund - CRISIL Liquid Fund Index S&P BSE 100 Index S&P BSE 200 Index Crisil Balanced Fund - 30% Nifty 50 Index + Aggressive Index Aggressive Index 70% CRISIL Liquid Fund Index Minimum New Investor: ` 5,000 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: ` 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 3.00 pm Exit Load 1% if redeemed If redeemed on or Nil Nil If redeemed on or before If redeemed /switched on (including SIP /STP / within 1 year from the before 30 days from the 1 Year from the date of or before 365 days from SWP, if available) date of allotment. date of allotment. allotment - 1%. the date of allotment - 1%. NIL - If redeemed after After 365 days - NIL. 30 days from the date of allotment. (w.e.f. Aug. 17, 2016) SIP Available SWP / STP Available Available after lock-in period Available Available Minimum No. & 6 installment of SIP - ` 2,000/- each, 6 installments of ` 500/- each. 6 installment of SIP - ` 2,000/- each, STP - ` 1,000/- each Amt. of SIP/SWP/STP STP - ` 1,000/- each & SWP - ` 500/- each. & SWP - ` 500/- each. (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). ^ Lock-in of 3 years. * Effective February 01, **Note: Fresh sale of units i.e. by way of purchase/ Switch-ins and registration of fresh SIP arrangement under the Scheme is suspended till further notice. $ Principal Index Fund Midcap merged into Principal Index Fund Nifty which is effective post the closure of the business hours on June 09,

6 Funds at a Glance (Contd.) DEBT SCHEMES Particulars Principal Government Principal Dynamic Principal Credit Principal Short Term Securities Fund Bond Fund Opportunities Fund Income Fund * Nature of the An Open-ended dedicated An Open-ended An Open-ended An Open-ended Income Scheme Scheme Gilt Scheme investing in Income Scheme Debt Scheme Government Securities Allotment Date - Regular Plan August 23, 2001 May 09, 2003 September 14, 2004 May 09, Direct Plan 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 Fund Manager & Bekxy Kuriakose Bekxy Kuriakose Bekxy Kuriakose Gurvinder Singh Wasan Managing the October 2012 Janaury 2013 Janaury 2013 April 2011 Current Fund from Total Investment 16 years 16 years 16 years 13 years Experience Benchmark I-Sec Composite Index Crisil Composite Bond Crisil Liquid Fund Index CRISIL Short-Term Bond Fund Index Fund Index Minimum 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 Cut Off Time Subscription# 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 Exit Load Nil If redeemed on or Nil 0.50% - if redeemed within 60 days from the (including SIP /STP/ before 1 Year from the date of allotment. Nil - if redeemed after 60 days from the SWP, if available) date of allotment - 1%. date of allotment. [Note: w.e.f. April 17, 2017] 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). *Principal Bank CD Fund merged into Principal Short Term Income Fund which is effective post the closure of the business hours on May 19,

7 Funds at a Glance (Contd.) DEBT SCHEMES LIQUID SCHEME* MONEY MARKET DEBT SCHEMES FUND OF FUNDS SCHEME Particulars Principal Principal Principal Money Principal Debt Principal Global Low Duration Fund Cash Management Fund Manager Fund Savings Fund Opportunities Fund Nature of the An Open-ended An Open-ended An Open-ended An Open-ended An Open-ended Scheme Debt Scheme Liquid Scheme Money Market Scheme Income Fund 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. Both the Plans offer Regular Plan and Direct Plan. Regular Plan & Direct Plan. Options/ Both the Plans offer Both the Plans offer Dividend & Growth Option. Both the Plans offer Both the Plans offer Dividend & Growth Option. Dividend & Growth Option. Dividend Frequency - Dividend and Growth Option. Growth & Dividend Option. Dividend Frequencies Dividend Frequency - Dividend Frequency - Regular Plan: Dividend Frequency - Dividend Option under both Daily / Weekly / Monthly Daily / Weekly / Monthly Daily & Weekly Dividend - Monthly / Quarterly the Plan offers facility of Reinvestment Facility Payout, Reinvestment and Monthly Dividend - Sweep. Payout, Reinvestment and Sweep facility. Direct Plan: Monthly Dividend - Payout, Reinvestment and Sweep facility. 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 14 years 14 years 14 years 14 years 28 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 Exit Load Nil Nil Nil If redeemed on or before If redeemed on or before (including SIP /STP/ 365 days from the date 1 Year from the SWP, if available) date of allotment - 1%. date of allotment - 1%. [Note: w.e.f. May 05, 2017] SIP / SWP / STP Available Minimum number 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each. & Amount of SIP/ SWP/STP (if available) FUND OF FUNDS SCHEME Particulars Principal Asset Allocation Fund-of-Funds Principal Asset Allocation Fund-of-Funds Principal Asset Allocation Fund-of-Funds Conservative Plan Moderate Plan Aggressive Plan Nature of the Scheme An Open-ended Fund-of-Funds Scheme An Open-ended Fund-of-Funds Scheme An Open-ended Fund-of-Funds Scheme Allotment Date Regular Sub-Plan & December 14, 2015 December 14, 2015 December 14, 2015 Direct Sub-Plan Investment Plans/Option Regular Sub-Plan & Direct Sub-Plan. Both the Sub-Plans offer Growth Option. Fund Manager & Rajat Jain - December 2015 Rajat Jain - December 2015 Rajat Jain - December 2015 Managing the Current Fund from Total Investment 28 years 28 years 28 years Experience Composite Benchmark 85% CRISIL Short Term Bond Fund Index and 60% CRISIL Short Term Bond Fund Index and 20% CRISIL Short Term Bond Fund Index and Consisting of 15% Nifty 50 40% Nifty 50 80% Nifty 50 Min. Application Amt. New Investor: ` 5,000 Existing Investor: ` 1,000 New Investor: ` 5,000 Existing Investor: ` 1,000 New Investor: ` 5,000 Existing Investor: ` 1,000 Cut Off Time # 3.00 pm 3.00 pm 3.00 pm Exit Load (including SIP /STP / SWP, if available) SIP / SWP / STP Min. number & Amount of SIP/SWP/STP NIL No exit load will be applicable for switches between the 3 plans i.e. Conservative Plan, Moderate Plan and Aggressive Plan of the Scheme. 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 realization of the funds upto 3.00 p.m. (12:30 pm in case of Global Opportunities Fund) and receipt of application (duly time stamped). 7

8 Principal Large Cap Fund (An open-ended equity scheme) MAAUM: ` crore AUM: ` crore Per Unit: (As on May 31, 2017) 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 23, June 24, December 24, December 29, June 24, N.A. N.A. July 28, N.A. N.A. February 5, N.A. N.A. Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. Pursuant payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 14.96% Beta^ 1.03 Sharpe Ratio^ (Annualised) 0.57 Portfolio Turnover Ratio** (as on May 31, 2017) 0.70 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. MARKET CAP ALLOCATION (As on May 31, 2017) % of Equity & Equity Related Instruments of Large Cap Companies Equity & Equity Related Instruments of Mid Cap & Other Companies 0.00 Derivatives 0.52 Cash and Other Assets 0.44 Instrument Industry % of Equity Maruti Suzuki India Auto 3.76 Tata Motors Auto 2.25 Hero MotoCorp Auto 2.03 Tata Motors A-DVR Auto 1.63 Bajaj Auto Auto 0.89 HDFC Bank Banks 5.04 ICICI Bank Banks 4.71 State Bank of India Banks 4.23 Kotak Mahindra Bank Banks 2.94 IndusInd Bank Banks 2.55 The Federal Bank Banks 1.52 Yes Bank Banks 1.22 Canara Bank Banks 1.05 Bank of Baroda Banks 1.02 Shree Cements Cement 2.32 The India Cements Cement 2.15 Ultratech Cement Cement 2.13 Larsen & Toubro Construction Project 4.00 Sadbhav Engineering Construction Project 0.89 ITC Consumer Non Durables 4.65 Britannia Industries Consumer Non Durables 2.91 Hindustan Unilever Consumer Non Durables 2.64 Asian Paints Consumer Non Durables 1.17 Manpasand Beverages Consumer Non Durables 1.13 JSW Steel Ferrous Metals 0.70 Jindal Steel & Power Ferrous Metals 0.53 Coromandel International Fertilisers 1.57 Housing Development Finance Corporation Finance 3.02 BSE Finance 0.48 Delta Corp Hotels, Resorts & Other Recreational Activities 0.95 Mahindra Holidays & Resorts India Hotels, Resorts & Other Recreational Activities 0.83 Zee Entertainment Enterprises Media & Entertainment 1.96 Hindalco Industries Non - Ferrous Metals 2.28 Hindustan Petroleum Corporation Petroleum Products 2.48 Reliance Industries Petroleum Products 2.31 Bharat Petroleum Corporation Petroleum Products 2.02 Natco Pharma Pharmaceuticals 2.46 Abbott India Pharmaceuticals 2.07 Aurobindo Pharma Pharmaceuticals 1.08 Divi's Laboratories Pharmaceuticals 0.83 Sun Pharmaceutical Industries Pharmaceuticals 0.64 Power Grid Corporation of India Power 3.90 Aditya Birla Nuvo Services 1.29 Infosys Software 3.25 Tata Consultancy Services Software 1.63 HCL Technologies Software 1.36 MindTree Software 0.93 Bharti Airtel Telecom - Services 1.64 DERIVATIVES 0.52 Jindal Steel & Power Stock Future 0.52 CBLO / Reverse Repo Investments 1.33 Cash & Cash Equivalents SECTOR ALLOCATION (TOP 10) (As on May 31, 2017) Banks Consumer Non Durables Auto Software Pharmaceuticals Petroleum Products Cement Construction Project Power Finance 12.50% 10.56% 7.17% 7.08% 6.81% 6.60% 4.89% 3.90% 3.50% 24.28% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% (% of ) 8

9 Principal Emerging Bluechip Fund (An open-ended equity scheme) MAAUM: ` crore AUM: ` 1, crore Per Unit: (As on May 31, 2017) 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 23, June 24, June 24, December 29, October 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. Pursuant payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 18.53% Beta^ 1.01 Sharpe Ratio^ (Annualised) 1.16 Portfolio Turnover Ratio** (as on May 31, 2017) 0.70 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. MARKET CAP ALLOCATION (As on May 31, 2017) % 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 9.30 Cash and Money Market / Fixed Income Securities (including MIBOR Linked Short Term Papers & Securitised Debt) 2.69 Mutual Funds 0.66 Derivatives 0.66 Market Cap Range for Nifty Free Float Midcap 100 Stocks As on 31st March, 2017 ` 1,22, Cr ` 4, Crs Instrument Industry % of Equity Eicher Motors Auto 3.33 MRF Auto Ancillaries 1.95 Motherson Sumi Systems Auto Ancillaries 1.54 Amara Raja Batteries Auto Ancillaries 1.14 Gabriel India Auto Ancillaries 0.99 IndusInd Bank Banks 2.47 ICICI Bank Banks 2.21 State Bank of India Banks 1.71 Kotak Mahindra Bank Banks 1.58 HDFC Bank Banks 1.32 Yes Bank Banks 1.10 City Union Bank Banks 1.09 Canara Bank Banks 0.89 RBL Bank Banks 0.87 Shree Cements Cement 1.92 The India Cements Cement 1.41 The Ramco Cements Cement 1.17 Dalmia Bharat Cement 1.04 Navin Fluorine International Chemicals 1.58 Tata Chemicals Chemicals 1.29 Himadri Speciality Chemical Chemicals 1.00 Atul Chemicals 0.89 Kajaria Ceramics Construction 0.96 NBCC (India) Construction 0.94 Asian Granito India Construction 0.86 Voltas Construction Project 1.41 KEC International Construction Project 1.38 Sadbhav Engineering Construction Project 1.22 Hindustan Construction Company Construction Project 0.86 Bajaj Electricals Consumer Durables 1.09 Orient Paper & Industries Consumer Durables 0.93 Symphony Consumer Durables 0.88 Bata India Consumer Durables 0.85 Sheela Foam Consumer Durables 0.81 Britannia Industries Consumer Non Durables 2.54 S H Kelkar and Company Consumer Non Durables 0.91 Triveni Engineering & Industries Consumer Non Durables 0.83 Gujarat State Fertilizers & Chemicals Fertilisers 1.02 Bajaj Finance Finance 1.63 Bharat Financial Inclusion Finance 1.23 Dewan Housing Finance Corporation Finance 1.11 ICICI Prudential Life Insurance Company Finance 1.08 Housing and Urban Development Corporation Finance 1.00 Petronet LNG Gas 1.73 Indraprastha Gas Gas 1.72 Gujarat State Petronet Gas 0.95 Delta Corp Hotels, Resorts & Other Recreational Activities 1.24 Bharat Electronics Industrial Capital Goods 1.11 AIA Engineering Industrial Products 1.96 Finolex Industries Industrial Products 1.44 Mold-Tek Packaging Industrial Products 1.28 Finolex Cables Industrial Products 1.12 Ramkrishna Forgings Industrial Products 0.93 FAG Bearings India Industrial Products 0.84 Sun TV Network Media & Entertainment 1.23 PVR Media & Entertainment 0.94 Hindalco Industries Non - Ferrous Metals 1.00 Hindustan Zinc Non - Ferrous Metals 0.77 UPL Pesticides 1.15 Hindustan Petroleum Corporation Petroleum Products 2.20 Indian Oil Corporation Petroleum Products 1.03 Natco Pharma Pharmaceuticals 1.86 Aurobindo Pharma Pharmaceuticals 1.45 Torrent Pharmaceuticals Pharmaceuticals 1.27 Aditya Birla Nuvo Services 1.27 Infosys Software 1.45 Cyient Software 0.94 Tata Communications Telecom - Services 0.90 SRF Textile Products 1.03 S. P. Apparels Textile Products 0.84 Vardhman Textiles Textiles - Cotton 1.24 Spicejet Transportation 1.12 TCI Express Transportation 1.10 Gateway Distriparks Transportation 0.98 Other Equities* 1.87 DERIVATIVES 0.66 HDFC Bank Stock Future 0.38 Muthoot Finance Stock Future 0.28 Investment Funds/Mutual Funds 0.66 Principal Short Term Income Fund - Direct Plan - Growth Option Mutual Fund 0.50 Principal Cash Management Fund - Growth Option Mutual Fund 0.16 CBLO / Reverse Repo Investments 4.25 Cash & Cash Equivalents * Holdings less than 0.75% SECTOR ALLOCATION (As on May 31, 2017) Banks 13.24% Industrial Products 7.57% Finance 6.77% Auto Ancillaries 6.26% Cement 5.54% Construction Project 4.87% Chemicals 4.76% Pharmaceuticals 4.58% Consumer Durables 4.56% Gas 4.40% Consumer Non Durables 4.28% Auto 3.33% Construction 3.27% Petroleum Products 3.23% Transportation 3.20% Software 2.39% Media & Entertainment 2.17% Textile Products 1.87% Non - Ferrous Metals 1.77% Services 1.27% Hotels, Resorts And Other Recreational Activities 1.24% Textiles - Cotton 1.24% Pesticides 1.15% Industrial Capital Goods 1.11% Fertilisers 1.02% Telecom - Services 0.90% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00%12.00%14.00% (% of ) 9

10 Principal Growth Fund (An open-ended equity scheme) MAAUM: ` crore AUM: ` crore Per Unit: (As on May 31, 2017) 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 23, June 24, December 24, December 29, December 31, N.A. N.A. Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. Pursuant to payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 17.67% Beta^ 1.19 Sharpe Ratio^ (Annualised) 0.77 Portfolio Turnover Ratio** (as on May 31, 2017) 0.43 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. Instrument Industry % of Equity Tata Motors Auto 3.25 Maruti Suzuki India Auto 1.85 Hero MotoCorp Auto 1.02 Asahi India Glass Auto Ancillaries 2.21 Rico Auto Industries Auto Ancillaries 1.18 HDFC Bank Banks 4.98 ICICI Bank Banks 4.94 State Bank of India Banks 3.35 Kotak Mahindra Bank Banks 1.70 The Federal Bank Banks 1.67 Bank of Baroda Banks 1.66 Canara Bank Banks 1.16 City Union Bank Banks 1.08 The Karur Vysya Bank Banks 1.04 Yes Bank Banks 1.03 Union Bank of India Banks 0.86 The India Cements Cement 2.90 Century Textiles & Industries Cement 1.44 JK Cement Cement 1.27 Ultratech Cement Cement 1.26 Birla Corporation Cement 1.10 Phillips Carbon Black Chemicals 0.27 Prestige Estates Projects Construction 0.82 IRB Infrastructure Developers Construction 0.70 Milestone Global Construction 0.01 Larsen & Toubro Construction Project 2.58 KEC International Construction Project 2.21 Hindustan Construction Company Construction Project 0.94 Bajaj Electricals Consumer Durables 1.92 ITC Consumer Non Durables 4.18 Bombay Burmah Trading Corporation Consumer Non Durables 2.14 Dabur India Consumer Non Durables 1.79 Britannia Industries Consumer Non Durables 1.64 United Spirits Consumer Non Durables 1.12 CL Educate Diversified Consumer Services 0.74 Jindal Steel & Power Ferrous Metals 1.05 Chambal Fertilisers and Chemicals Fertilisers 2.42 Dewan Housing Finance Corporation Finance 2.77 Housing Development Finance Corporation Finance 2.09 Mahindra Holidays & Resorts India Hotels, Resorts & Other Recreational Activities 1.07 The Indian Hotels Company Hotels, Resorts & Other Recreational Activities 0.96 Jain Irrigation Systems Industrial Products 2.04 Hindustan Zinc Non - Ferrous Metals 1.03 National Aluminium Company Non - Ferrous Metals 0.73 Reliance Industries Petroleum Products 2.97 Castrol India Petroleum Products 0.96 Aurobindo Pharma Pharmaceuticals 2.12 Natco Pharma Pharmaceuticals 1.08 Abbott India Pharmaceuticals 0.94 Dishman Carbogen Amics **@ Pharmaceuticals 0.93 Glenmark Pharmaceuticals Pharmaceuticals 0.60 Sun Pharmaceutical Industries Pharmaceuticals 0.55 Kalpataru Power Transmission Power 1.29 Rattanindia Power Power 0.56 Infosys Software 3.55 Hexaware Technologies Software 0.90 Tata Consultancy Services Software 0.84 HCL Technologies Software 0.82 Spicejet Transportation 1.18 Jet Airways (India) Transportation 0.83 Investment Funds/Mutual Funds 1.29 Principal Short Term Income Fund - Direct Plan - Growth Option Mutual Fund 1.29 CBLO / Reverse Repo Investments 3.17 Cash & Cash Equivalents SECTOR ALLOCATION (TOP 10) (As on May 31, 2017) Banks Consumer Non Durables Cement Pharmaceuticals Auto Software Construction Project Finance Petroleum Products Auto Ancillaries 10.87% 7.97% 6.22% 6.12% 6.11% 5.73% 4.86% 3.93% 3.39% 23.47% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% (% of ) 10

11 Principal Dividend Yield Fund (An open-ended equity scheme) MAAUM: ` crore AUM: ` crore Per Unit: (As on May 31, 2017) 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 Date Regular Plan Direct Plan Dividend Cum Dividend Cum (`/Unit)* Dividend (`/Unit)* Dividend December 23, December 29, October 12, N.A. N.A. April 24, N.A. N.A. October 3, N.A. N.A. Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. Pursuant to payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 16.03% Beta^ 0.95 Sharpe Ratio^ (Annualised) 0.62 Portfolio Turnover Ratio** (as on May 31, 2017) 0.65 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. Instrument Industry % of Equity Maruti Suzuki India Auto 4.13 Hero MotoCorp Auto 3.94 Bajaj Auto Auto 2.40 Tata Motors A-DVR Auto 1.70 SML Isuzu Auto 1.38 CEAT Auto Ancillaries 1.69 Asahi India Glass Auto Ancillaries 1.17 ICICI Bank Banks 4.00 State Bank of India Banks 3.68 HDFC Bank Banks 3.35 IndusInd Bank Banks 1.84 City Union Bank Banks 1.02 Kotak Mahindra Bank Banks 0.95 Dalmia Bharat Cement 3.42 Ultratech Cement Cement 1.80 Aarti Industries Chemicals 1.49 Himadri Speciality Chemical Chemicals 1.00 Phillips Carbon Black Chemicals 0.92 NBCC (India) Construction 1.09 KEC International Construction Project 2.19 Larsen & Toubro Construction Project 1.24 Orient Paper & Industries Consumer Durables 0.98 Hindustan Unilever Consumer Non Durables 6.74 ITC Consumer Non Durables 5.08 VST Industries Consumer Non Durables 2.61 Colgate Palmolive (India) Consumer Non Durables 2.33 Balrampur Chini Mills Consumer Non Durables 1.31 DCM Shriram Consumer Non Durables 0.89 Bajaj Holdings & Investment Finance 1.88 Housing and Urban Development Corporation Finance 1.03 Petronet LNG Gas 1.27 Indraprastha Gas Gas 1.26 Gujarat State Petronet Gas 0.88 Jain Irrigation Systems Industrial Products 1.05 Cummins India Industrial Products 0.90 Hindalco Industries Non - Ferrous Metals 1.28 Hindustan Zinc Non - Ferrous Metals 1.08 Oil & Natural Gas Corporation Oil 1.56 PI Industries Pesticides 1.26 Hindustan Petroleum Corporation Petroleum Products 4.19 Bharat Petroleum Corporation Petroleum Products 3.92 Mangalore Refinery and Petrochemicals Petroleum Products 1.38 Reliance Industries Petroleum Products 1.35 Aurobindo Pharma Pharmaceuticals 0.81 Infosys Software 3.27 Cyient Software 1.01 NIIT Software 0.95 HCL Technologies Software 0.20 SRF Textile Products 1.09 Himatsingka Seide Textile Products 0.79 Gateway Distriparks Transportation 1.05 Investment Funds/Mutual Funds 0.16 Principal Cash Management Fund - Growth Option Mutual Fund 0.16 CBLO / Reverse Repo Investments 2.42 Cash & Cash Equivalents SECTOR ALLOCATION (TOP 10) (As on May 31, 2017) Consumer Non Durables Banks Auto Petroleum Products Software Cement Construction Project Chemicals Gas Finance 5.43% 5.22% 3.43% 3.41% 3.41% 2.91% 14.84% 13.55% 10.84% 18.96% 0.00% 5.00% 10.00% 15.00% 20.00% (% of ) 11

12 Principal Index Fund - Nifty (An open-ended index scheme) MAAUM: ` crore AUM: ` crore Per Unit: (As on May 31, 2017) Direct Plan Regular Plan Growth Option : ` ` Dividend Option : ` ` INVESTMENT OBJECTIVE To invest principally in securities that comprise Nifty 50 and subject to tracking errors endeavour to attain results commensurate with the Nifty 50. DIVIDEND UPDATE (REGULAR PLAN) Date Dividend (`/Unit)* Cum Dividend December 24, Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. Pursuant to payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 13.79% Beta^ 1.01 Sharpe Ratio^ (Annualised) 0.33 Portfolio Turnover Ratio** (as on May 31, 2017) 0.05 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. TRACKING DEVIATION 0.07%* * Trailing 12 months ended May 31, 2017 (Annualized). Instrument Industry % of Equity Maruti Suzuki India Auto 2.63 Tata Motors Auto 2.46 Mahindra & Mahindra Auto 1.81 Hero MotoCorp Auto 1.32 Bajaj Auto Auto 1.06 Eicher Motors Auto 1.06 Tata Motors A-DVR Auto 0.40 Bosch Auto Ancillaries 0.60 HDFC Bank Banks 9.15 ICICI Bank Banks 5.23 Kotak Mahindra Bank Banks 3.24 State Bank of India Banks 2.51 Axis Bank Banks 2.40 IndusInd Bank Banks 2.05 Yes Bank Banks 1.44 Bank of Baroda Banks 0.46 Ultratech Cement Cement 1.20 Ambuja Cements Cement 0.49 ACC Cement 0.38 Larsen & Toubro Construction Project 3.98 ITC Consumer Non Durables 7.32 Hindustan Unilever Consumer Non Durables 2.09 Asian Paints Consumer Non Durables 1.43 Tata Steel Ferrous Metals 0.93 Housing Development Finance Corporation Finance 6.88 Indiabulls Housing Finance Finance 1.03 GAIL (India) Gas 0.73 Zee Entertainment Enterprises Media & Entertainment 0.77 Coal India Minerals/Mining 0.94 Vedanta Non - Ferrous Metals 1.22 Hindalco Industries Non - Ferrous Metals 0.80 Oil & Natural Gas Corporation Oil 1.37 Reliance Industries Petroleum Products 6.11 Indian Oil Corporation Petroleum Products 1.20 Bharat Petroleum Corporation Petroleum Products 1.06 Sun Pharmaceutical Industries Pharmaceuticals 1.52 Dr. Reddy's Laboratories Pharmaceuticals 0.84 Lupin Pharmaceuticals 0.76 Cipla Pharmaceuticals 0.72 Aurobindo Pharma Pharmaceuticals 0.44 Power Grid Corporation of India Power 1.26 NTPC Power 1.09 Tata Power Company Power 0.40 Infosys Software 5.37 Tata Consultancy Services Software 3.72 HCL Technologies Software 1.35 Wipro Software 0.93 Tech Mahindra Software 0.67 Bharti Infratel Telecom - Equipment & Accessories 0.71 Bharti Airtel Telecom - Services 1.35 Adani Ports and Special Economic Zone Transportation 0.75 CBLO / Reverse Repo Investments 0.25 Cash & Cash Equivalents 0.12 SECTOR ALLOCATION (TOP 10) (As on May 31, 2017) Banks Software Consumer Non Durables Auto Petroleum Products Finance Pharmaceuticals Construction Project Power Cement 12.04% 10.84% 10.74% 8.37% 7.91% 4.28% 3.98% 2.75% 2.07% (% of ) 26.48% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 12

13 Principal SMART Equity Fund (An open-ended equity scheme) MAAUM: ` crore AUM: ` crore Per Unit: (As on May 31, 2017) Direct Plan Regular Plan Growth Option : ` ` Dividend Option (Monthly) : ` ` 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 May 17, April 17, March 17, February 17, January 24, December 23, November 24, October 24, September 23, Past performance may or may not be sustained in the future. * On face value of ` 10. Note: All Dividend (`/Unit) figures are Gross Dividend. Pursuant payment of dividend, the of Dividend Option of schemes/plans would fall to the extent of payout and statutory levy, if applicable. RATIOS & OTHER DETAILS (As on May 31, 2017) Standard Deviation^ (Annualised) 8.01% Beta^ 0.78 Sharpe Ratio^ (Annualised) 0.55 Portfolio Turnover Ratio** (as on May 31, 2017) 5.78 Expense Ratio # (as on May 31, 2017) Direct Plan % Regular Plan % Note: ^ The above measures have been calculated by taking rolling returns for a 3 year period with 6.25% risk free rate of return (1 days - MIBOR Rate as on May 31, 2017). ** 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. # Total Expense Ratio is weighted average for the month. Ratio excludes service tax on management fees. Instrument Industry/ % of % of Rating Derivatives Equity Maruti Suzuki India Auto 1.73 Tata Motors Auto 1.03 Hero MotoCorp Auto 0.93 Tata Motors A-DVR Auto 0.75 Bajaj Auto Auto 0.41 HDFC Bank Banks 2.32 ICICI Bank Banks 2.16 State Bank of India Banks 1.93 Kotak Mahindra Bank Banks 1.35 IndusInd Bank Banks 1.18 The Federal Bank Banks 0.70 Yes Bank Banks 0.56 Canara Bank Banks 0.48 Bank of Baroda Banks 0.47 Shree Cements Cement 1.07 The India Cements Cement 0.99 Ultratech Cement Cement 0.98 Larsen & Toubro Construction Project 1.83 Sadbhav Engineering Construction Project 0.07 ITC Consumer Non Durables 2.13 Britannia Industries Consumer Non Durables 1.34 Hindustan Unilever Consumer Non Durables 1.21 JSW Steel Ferrous Metals 0.32 Coromandel International Fertilisers 0.72 HDFC Finance 1.38 BSE Finance 0.21 Delta Corp Hotels, Resorts & Other Recreational Activities 0.41 Mahindra Holidays & Resorts India Hotels, Resorts & Other Recreational Activities 0.38 Zee Entertainment Enterprises Media & Entertainment 0.90 Dish TV India Media & Entertainment 0.43 Hindalco Industries Non - Ferrous Metals 1.05 Hindustan Petroleum Corporation Petroleum Products 1.14 Reliance Industries Petroleum Products 1.06 Bharat Petroleum Corporation Petroleum Products 0.93 Aurobindo Pharma Pharmaceuticals 1.67 Natco Pharma Pharmaceuticals 1.13 Abbott India Pharmaceuticals 0.95 Sun Pharmaceutical Industries Pharmaceuticals 0.73 Divi's Laboratories Pharmaceuticals 0.53 Power Grid Corporation of India Power 1.79 Aditya Birla Nuvo Services 0.59 Infosys Software 1.49 Tata Consultancy Services Software 0.75 HCL Technologies Software 0.63 MindTree Software 0.53 Bharti Airtel Telecom - Services 0.76 Cash Future Arbitrage Reliance Industries Petroleum Products 7.56 Reliance Industries Stock Future Hindustan Unilever Consumer Non Durables 3.89 Hindustan Unilever Stock Future Century Textiles & Industries Cement 1.95 Century Textiles & Industries Stock Future Tata Motors A-DVR Auto 1.87 Tata Motors A-DVR Stock Future Sun TV Network Media & Entertainment 1.78 Sun TV Network Stock Future Reliance Infrastructure Power 1.04 Reliance Infrastructure Stock Future Jet Airways (India) Transportation 0.74 Jet Airways (India) Stock Future Indiabulls Housing Finance Finance 0.58 Indiabulls Housing Finance Stock Future Reliance Power Power 0.49 Reliance Power Stock Future Commercial Paper 8.66 Cox & Kings CARE A HCL Infosystems [ICRA]A Kribhco Shyam Fertilizers CRISIL A Cox & Kings CARE A Piramal Enterprises [ICRA]A Treasury Bill 0.15 TBILL 91 DAYS 2017 Sovereign 0.15 Sovereign % Government of India Security Sovereign % Government of India Security Sovereign 0.05 BONDS & NCDs Indian Railway Finance Corporation CRISIL AAA 3.10 Small Industries Development Bank of India CARE AAA 3.10 Manappuram Finance CARE AA Dewan Housing Finance Corporation BWR AAA 1.87 Tata Motors CARE AA Indiabulls Housing Finance BWR AAA 1.25 Altico Capital India Private IND AA Investment Funds/Mutual Funds^ 4.25 Principal Cash Management Fund - Growth Option Mutual Fund 4.25 CBLO / Reverse Repo Investments 2.58 Cash & Cash Equivalents 1.18 SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on May 31, 2017) Banks Pharmaceuticals Auto Consumer Non Durables Software Petroleum Products Cement Construction Project Power Finance 5.01% 4.85% 4.68% 3.40% 3.13% 3.04% 1.90% 1.79% 1.59% (% of ) The chart represents the unhedged equitys positions only % 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%