principal mutual fund march 2014

PRODUCT SUITABILITY

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

Principal Large Cap Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 8(An Open-ended Equity Scheme) including equity derivatives of large capitalization Companies

Principal Emerging Bluechip Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 9(An Open-ended Equity Scheme) including equity derivatives of mid & small capitalization Companies.

Principal Growth Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 10(An Open-ended Equity Scheme) including equity derivatives of companies across market capitalization.

Principal Dividend Yield Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 11(An Open-ended Equity Scheme) including equity derivatives of high dividend yield Companies.

Principal Index Fund - Nifty • Long term Capital Growth. • Investment in equity securities High Risk (Brown) 12(An Open-ended Index Scheme) including equity derivatives of CNX Nifty (NSE) Companies.

Principal SMART Equity Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 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 Fundsbetween Equity & Debt on the basis of the Price Earnings Ratio of CNX Nifty.

Principal Personal Tax Saver Fund • Long term Capital Growth with a three year lock-in. High Risk (Brown) 14(An Open-ended Equity Linked Savings Scheme) • Investment in equity & equity related securities including equity derivatives of

large capitalization Companies.

Principal Tax Savings Fund • Long term Capital Growth with a three year lock-in. High Risk (Brown) 15(An Open-ended Equity Linked Savings Scheme) • Investment in equity & equity related securities including equity derivatives of

companies across market capitalization.

Principal Balanced Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 16(An Open-ended Balanced Scheme) including equity derivatives as well as debt/money market securities.

Principal Debt Savings Fund - MIP • Income and Capital Growth over a medium term investment horizon. Medium Risk (Yellow) 17An Open-ended Income Fund • Investment primarily in debt/money market securities with exposure in(Monthly Income is not assured and is subject equity & equity related instruments including equity derivatives.to the availability of distributable surplus)

Principal Government Securities Fund • Income over a long term investment horizon. Low Risk (Blue) 18(An Open-ended dedicated Gilt Scheme • Investment in Government Securities.investing in Government Securities)

Principal Income Fund - Long Term Plan • Income over a long term investment horizon. Low Risk (Blue) 19(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

Principal Debt Opportunities Fund - • Income over a long term investment horizon. Low Risk (Blue) 20Corporate Bond Plan • Investment in Debt & Money Market Instruments of Private &(An Open-ended Debt Scheme) Public Sector Companies.

Principal Income Fund - Short Term Plan • Income over a medium term investment horizon. Low Risk (Blue) 21(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

Principal Bank CD Fund • Income over a medium term investment horizon. Low Risk (Blue) 22(An Open-ended Debt Scheme) • Investment in Bank CDs, Debt & Money Market Instruments.

Principal Debt Opportunities Fund - • Income over a short term investment horizon. Low Risk (Blue) 23Conservative Plan (An Open-ended Debt Scheme) • Investment in Debt & Money Market Instruments.

Principal Cash Management Fund • Income over a short term investment horizon. • Investment in Debt & Low Risk (Blue) 24(An Open-ended Liquid Scheme) Money Market Instruments, with maturity not exceeding 91 days.

Principal Global Opportunities Fund • Long term Capital Growth. High Risk (Brown) 25(An Open-ended Fund of Funds Scheme) • Investment in overseas mutual fund schemes.

Principal Retail Money Manager Fund • Income over a short term investment horizon. • Investment in Debt & Low Risk (Blue) 25(An Open-ended Liquid Scheme) Money Market Instruments, with maturity not exceeding 91 days.

Principal Debt Savings Fund - Retail Plan • Income over a long term investment horizon. Low Risk (Blue) 26(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

Principal Retail Equity Savings Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 27(An Open-ended Equity Scheme) including equity derivatives of companies across market capitalization.

~ Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as: Investors understand that their principal will be at Low Risk (Blue); Investors understand that their principal will be at

Medium Risk (Yellow); Investors understand that their principal will be at High Risk (Brown)

INVEST KNOWHOW January 20143

Debt Markets

Fund Manager Commentary

January 2014

Fixed Income Update for January 2014

Key Market Highlights:

• During the month we saw mixed performance across various debt asset classes.

While gilt yields fell by 5-10 bps across the curve, T- bill and CD rates rose by

10-75 bps, the corporate bond yields remained flattish to marginally up 5 bps.

Gilt yields fell on OMO announcement, deferment of G- sec auction and fall in

global bond yields. Money market rates rose as banking system liquidity deficit rose

and overnight rates remained volatile. Renewed fears on emerging markets led to

selloff by FIIs in T- bills and corporate bonds towards end of the month.

• RBI released the much awaited Expert Committee report which was formed to

revise and strengthen the Monetary Policy Framework. The key recommendations

of this report are 1) Inflation as measured by Headline CPI (combined) to be nominal

anchor for Monetary Policy targeting 2) the target for inflation should be set at

4 per cent with a band of +/- 2 per cent around it 3) the transition path to the

target zone should be graduated to bringing down inflation from the current level

of 10 per cent to 8 per cent over a period not exceeding the next 12 months and to

6 per cent over a period not exceeding the next 24 month period before

formally adopting the recommended target of 4 per cent inflation with a band of

+/- 2 per cent. 4) Monetary policy decision-making should be vested in a monetary

policy committee 5) In the first or transitional phase, the weighted average call

rate could remain the operating target, and the overnight LAF repo rate may

continue as the single policy rate. In Phase II the 14 day term repo would be target

policy rate. This report if accepted could mark a significant change in the conduct

of Monetary Policy in India. Several recommendations including introduction of

term repos, significance of Headline CPI etc have already been initiated by RBI

Governor Dr. Rajan.

• RBI in its Monetary Policy review held on 28th Jan 2014 surprised markets by hiking

key repo and reverse repo rates by 25 bps to 8% and 7% respectively. Although

headline inflation has fallen substantially during the month, core CPI and WPI went

up marginally. In hiking rates, RBI seems to have implicitly accepted the

recommendations of the Urjit Patel Committee on keeping Headline CPI as nominal

anchor and keeping rates high till inflation fall.

• The US Federal Reserve also decided to further curtail its bond purchases from

February 2014 by another US$ 10 bn. 10 year US treasury yields ended the month

much lower at 2.64% as compared to 3.02% the previous month.

• INR exhibited signs of weakness by depreciating against USD during the month.

It ended at 62.65 as compared to 61.8 during the previous month. During the

month FIIs were net buyers of domestic debt to the tune of ` 13,000 crore approx.

• The new ten year benchmark 8.83% GOI 2023 closed at 8.78%, 5 bps lower than

previous month end.

• The ten year AAA Corporate bond benchmark closed at 9.66%, 5 bps higher than

previous month. The five yr AAA corporate bond benchmark rose by 11 bps to close

at 9.75%.

• 1 year CD rates rose sharply to 9.65%, 42 bps higher than previous month. 1 year

T-bill rate also rose to 8.83%.

• December WPI data release came at 6.16% y-o-y vs. 7.52% in previous month.

CPI for December 2013 also came in sharply lower at 9.87% compared to 11.16%

in previous month. The fall in WPI and CPI was primarily due to sharp fall in vegetables.

• November industrial production (IIP) growth came in at -2.1% yoy reflecting tepid

activity.

• Liquidity deficit was lower at around ̀ 93,500 crore higher than the ̀ 78,000 crore

average for the previous month combined for daily LAF, term LAF and MSF.

Outlook:

• We expect long end gilt yields to remain range bound with downward bias due to

lack of supply this month. The ten year G-sec benchmark is expected to trade in a

band of 8.50 to 9.00% in the near term.

• The five year AAA PSU corporate bond benchmark is expected to trade in a range

of 9.40 to 9.80%.

• Inflation as measured by WPI and CPI for January 2014 is expected to fall further.

This may support gilt and bond prices.

• Short term money market yields are expected to remain range bound. Banks CD

issuance can put upward pressure on rates, however if liquidity eases from current

levels it may lead to softening of CD rates.

• Systemic liquidity deficit is expected to remain lower during the month in a range of

` 60,000 to 90,000 cr for the month of February 2014.


Fund Manager Commentary

Equity Markets

Review of Equity Market for the Month of January 2014

The equity markets were down about 4% in the month of January. The MSCI India index

was down about 4% in USD terms, while the benchmark MSCI EM index was down

about 6.6%. This was primarily due to FII flows which were barely positive during the

month. Globally, there was heightened risk aversion to EMs as investors worried about

slowing growth in China (with weaker PMI and slower industrial growth) and the strains

in its shadow banking system, the likely impact of continued taper of bond buying by

the Fed and the high volatility in currencies of Emerging Market economies, especially

those with high current account deficits (Turkey and South Africa). While India's external

fundamentals have improved since July 2013, it was not immune to this risk aversion.

There was heavy selling by asset allocators (ETFs and the like) in EM equity during

January. These investors are not stock pickers, and are usually less discriminating with

respect to fundamentals of specific countries or companies. The total redemption from

EM equity was about USD 12 Billion during the month, of which USD 6.3 Billion

went out in the last week itself. During the month, the net investment by FIIs in cash

equity was USD 80 million while domestic institutions took out USD 138 million.

(Insurance companies were buyers of USD 203 million while Mutual Funds were sellers

to the extent of USD 341 million). The Indian Rupee held up pretty well and was down

only 1.4% against the USD during the month.

During the month, the mid cap and small cap indices marginally underperformed the

large cap indices as given below. In terms of sector indices, the IT, Healthcare and

FMCG did well, while Autos, Banks, Metals and Industrials did badly. The IT companies'

results continued to meet or exceed expectations and the industry expects better volume

growth in Calendar Year 2014 over Calendar Year 2013. Rate sensitive sectors like

Banks and autos were impacted by the repo rate hike in January, which the market was

not anticipating. In addition, banks were also impacted by continuing asset quality

issues. Private sector banks are also showing some stress in their book. While PSU

banks continued to have slippages, some banks mentioned that they were bottoming

out on asset quality. However, we are yet cautious on asset quality as economic growth

is still weak. Four wheelers (both cars and Commercial vehicles) have had negative

volume growth in FY 14 to date which weighed on their performance.

Macroeconomic data has been mixed. While inflation (both CPI and WPI) has shown

improvement, the fiscal deficit, industrial production and exports have been challenging.

The CPI for December came in at 9.87% (previous month 11.2%) while WPI came in at

6.2% (previous month 7.5%) driven mainly by fall in vegetable prices. IIP for November

was (-) 2.1%, with consumer durables pulling down the number. Indian exports for the

month of December grew at 3.5% yoy, which is slower than the growth rate of 10.6%

in the past five months since the Rupee depreciation in July. However, the biggest

concern on the macro front is on the fiscal deficit. The fiscal deficit till December is 95%

of the full year target. The problem is on the revenue side with government receipts till

December being about 58% of the target for the full year (this number has ranged

around 65% in the past few years). The concern is that if GDP growth remains weak in

FY 15 too, revenues could be a challenge even in the next year. In other weak data, the

savings rate for the economy in FY 13 fell to 30% of GDP (31.3% in FY12).

Based on the corporate results that have come in, there have been upgrades in IT

Services, Consumer staples and Health Care sectors. There have been downgrades in

Telecom, Materials and some Industrials. In Telecom companies, the volume growth

has been tepid, while metals companies are impacted by lower global commodity prices.

While FY 14 is at an end, for FY 15 we expect an earnings growth of around 13% for

the BSE 30 companies.

Businessmen are currently in a wait and watch mode waiting for election results.

However, the government has cleared a number of projects and we could see project

execution picking up in the second half of the year. The markets are going to be

volatile leading up to the election, though we think a major correction in the broad

markets is unlikely.

During the month, we bought or added to our positions in Apollo Tyres, Ashok Leyland,

Bata India, BPCL, Cipla, Colgate Palmolive, Crompton Greaves, Finolex Cable, Godrej

Industries, Havells India, HCL Technologies, Kalpataru Power, L&T, Maruti Suzuki,

Motherson Sumi, National Aluminium, Sadbhav Engineering, Tata Motors and Ultra

Tech Cemco.

During the month, we sold or reduced our positions in Alembic Pharmaceuticals,

Aurobindo Pharma, Coal India, Cummins, Dabur, Divis Laboratories, Eros, Escorts,

Idea Cellular, Indian Bank, J K Tyre, Kaveri Seed, MT Educare, National Buildings

Construction Corp, NCC Ltd., Oracle Financial, Puravankara Projects, Spice Jet,

Tata Steel and UPL Ltd.

January 2014

PERFORMANCE AS ON JANUARY 31, 2014*

Index 1 Month 3 Months 6 Months 1 Year(%) (%) (%) (%)

Broad Markets

CNX Nifty Index 6090 -3.40 -3.33 6.05 0.91

S&P BSE Sensex 20514 -3.10 -3.07 6.04 3.11

S&P BSE 100 6071 -4.04 -3.18 6.38 -0.34

S&P BSE 200 2425 -4.15 -2.61 6.80 -1.45

S&P BSE 500 7499 -4.21 -2.06 7.35 -2.17

S&P BSE MID CAP 6308 -5.93 3.29 13.80 -9.51

S&P BSE SMALL CAP 6263 -4.39 6.23 17.93 -11.46

Sectoral Performance

S&P BSE AUTO 11569 -5.63 -4.19 9.46 5.23

S&P BSE Bankex 11712 -9.92 -10.50 2.37 -19.67

S&P BSE CG 9487 -7.58 3.66 15.31 -9.61

S&P BSE CD 5548 -4.69 -12.02 -11.40 -26.82

S&P BSE FMCG 6518 -0.75 -4.35 -4.03 10.07

S&P BSE METAL 9152 -8.16 -0.27 32.97 -13.71

S&P BSE Oil & Gas 8453 -4.32 -5.41 -1.46 -9.68

S&P BSE PSU 5555 -6.00 -4.29 1.93 -27.50

S&P BSE Teck 5168 2.30 7.33 20.31 36.04

S&P BSE HC 10110 1.44 5.21 11.41 26.11

*Performance for less than one year period are absolute returns and more than one year arecompounded annualized returns.

Source - MFI Explorer


Fund at a Glance

Particulars Principal Personal Principal Principal Global Principal Principal DebtTax Saver Fund Tax Savings Fund Opportunities Fund Balanced Fund Savings Fund -

Monthly Income Plan

Nature of the An Open-ended Equity An Open-ended Equity An Open-ended An Open-ended An Open-ended Income FundScheme Linked Savings Scheme Linked Savings Scheme Fund of Funds Scheme Balanced Scheme (Monthly Income is not assured

and is subject to the availabilityof distributable surplus)

Allotment Date

- Regular Plan March 31, 1996 March 31, 1996 March 29, 2004 January 14, 2000 May 23, 2002

- 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. Growth & Dividend Option. Dividend & Growth Option.Dividend Option under both Dividend Option under both Dividend Frequencies -the Plan offers facility of Payout, the Plan offers facility of Payout, Monthly / QuarterlyReinvestment and Sweep. Reinvestment and Sweep.

Fund Manager & Anupam Tiwari P.V.K. Mohan Rajat Jain P.V.K. Mohan Pankaj JainManaging the July 2011 September 2010 March 2004 May 2010 January 2012Current Fund from

Total Investment 9 years 20 years 24 years 20 years 11 yearsExperience

Benchmark S&P BSE 100 Index S&P BSE 200 Index MSCI World Index Crisil Balanced Fund Index Crisil MIP Blended Index

Minimum New Investor: ` 500 New Investor: ` 500 New Investor: ` 10,000 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time# 3.00 pm 3.00 pm 12.30 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 SIP / STP /SWP, if available)

SIP Available

SWP / STP Available after lock-in period Available Available Available

Minimum No. & 6 installments of ` 500/- each. 6 installment of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.Amt. of SIP/SWP/STP(if available)

EQUITY LINKED SAVINGS SCHEME(ELSS)

FUND OF FUNDSSCHEME

TARGET RISK FUNDS

# 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 NAV (Net Asset Value) of the day shall be applicable subject to realisationof the funds upto 3.00 p.m. and receipt of application (duly time stamped).

Particulars Principal Principal Emerging Principal Principal Principal PrincipalLarge Cap Fund Bluechip Fund Growth Fund Dividend Yield Fund Index Fund - Nifty SMART Equity Fund

Nature of the An Open-ended An Open-ended An Open-ended An Open-ended An Open-ended An Open-endedScheme 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, 2010

- 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 TiwariManaging the July 2011 June 2011 September 2010 December 2011 October 2012 July 2011Current Fund from

Total Investment 9 years 22 years 20 years 22 years 13 years 9 yearsExperience

Benchmark S&P BSE 100 Index CNX Midcap Index S&P BSE 200 Index CNX Dividend CNX Nifty Index Crisil Balanced Fund IndexOpportunities Index

Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Exit Load If redeemed on or before 1 Year from the date of allotment - 1%. Nil 1% if redeemed(including SIP / STP / within 1 year from theSWP, if available) 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 SCHEMES


Fund at a Glance (Contd.)

Particulars Principal Government Principal Income Fund - Principal Debt Opportunities Principal Income Fund - PrincipalSecurities 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-endedScheme 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, 2007


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 WasanManaging the October 2012 Janaury 2013 Janaury 2013 April 2011 April 2011Current Fund from


Benchmark I-Sec Composite Index Crisil Composite Bond Crisil Composite Bond CRISIL Short-Term Bond Crisil Liquid Fund IndexFund Index Fund Index Fund Index

Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time

Subscription# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Redemption 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Exit Load Nil If redeemed on or From the date of allotment If redeemed within If redeemed within(including SIP / STP / before 1 Year from the if redeemed any time - 180 days from the 6 months from theSWP, if available) date of allotment - 1%. • Upto 12 months - 2% date of allotment - 0.50% date of allotment - 0.50%

• From 12 months and upto 24 months - 1%• After 24 months - Nil


Minimum number 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.& Amount of SIP/SWP/STP (if available)

DEBT SCHEMES

# 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 NAV (Net Asset Value) of the day shall be applicable subject to realisationof the funds upto 3.00 p.m. and receipt of application (duly time stamped).


Particulars Principal Debt Opportunities Principal Principal Retail Principal Debt Savings Fund - Principal Retail EquityFund - 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-endedScheme 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, 1998


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 offersDirect Plan: Monthly facility of Payout,(Reinvestment) Reinvestment and Sweep.

Fund Manager & Pankaj Jain Pankaj Jain Pankaj Jain Pankaj Jain P.V.K. MohanManaging the January 2012 January 2012 January 2012 January 2012 October 2012Current Fund from


Benchmark Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Short Term 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: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off TimeSubscription# 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 Nil If redeemed on or before If redeemed on or before(including SIP / STP / 30 days from the 30 days from theSWP, if available) date of allotment - 1%. date of allotment - 1%.


Minimum number 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.& Amount of SIP/SWP/STP (if available)

DEBT SCHEMES RETAIL SCHEMESLIQUID SCHEME*

* In respect of Liquid Scheme(s) NAV applicable shall be subject to receipt of valid application/switch-in request at the OPT and credit of entire subscription/switch-in amounts into the Bank Account of the concerning Scheme(s)/Plan(s) and funds are available for utilization by the Scheme(s)/Plan(s), within relevant cut-off time as applicable to the relevant Scheme(s)/Plan(s).

# 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 NAV (Net Asset Value) of the day shall be applicable subject to realisationof 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 DividendOption and the Payout & Sweep facility to Monthly Dividend Option under Regular Plan of Principal Retail Money Manager Fund (b) Dividend Option under Regular Plan of Principal Debt Savings Fund - Retail Plan and (c) DividendOption under Regular Plan of Principal Retail Equity Savings Fund, are not available for subscription/Switch-in. Direct Plan under the Scheme do not offer this Options.

+ 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 acommon portfolio.

Fund at a Glance (Contd.)


Principal Large Cap Fund (An open-ended equity scheme)

FUND FEATURES

QAAUM (For the period October to December 2013):` 297.31 crore

NAV per unit (As on January 31, 2014)Direct Plan Regular Plan

Growth Option : ` 31.16 ` 30.96Dividend Option : ` 21.34 ` 21.20

INVESTMENT OBJECTIVE

To provide capital appreciation and /or dividend distribution by predominantly investingin companies having a large market capitalization.

DIVIDEND UPDATE (REGULAR PLAN)

Date Dividend (`/Unit)* Cum Dividend NAV

June 24, 2010 1.5000 20.2200

July 28, 2009 2.0000 17.6700

February 5, 2008 2.0000 23.5600

May 15, 2007 1.5000 17.7600

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 January 31, 2014)

Standard Deviation^ (Annualised) 16.27%

Beta^ 0.89

Sharpe Ratio^ (Annualised) -0.29

Portfolio Turnover Ratio** 1.19

Expense Ratio (Regular Plan)#+ 2.52%

Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.8969% risk free rate of return (91 days - T Bill Rate as on Jan. 29, 2014).** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchasesmade during the 12 month rolling year/period divided by the 12 month rolling year/periodAverage asset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.

MARKET CAP ALLOCATION (As on January 31, 2014)

% of NAV

Equity & Equity Related Instruments of Large Cap Companies 96.44

Equity & Equity Related Instruments of Mid Cap & Other Companies –

Cash and Other Assets 3.56

PORTFOLIO (As on January 31, 2014)

Instrument Industry % of NAV

Equity 96.44

Infosys Software 7.92

ITC Consumer Non Durables 6.56

ICICI Bank Banks 6.07

HCL Technologies Software 5.54

Bharti Airtel Telecom - Services 5.35

Housing Development Finance Corpn. Finance 5.17

Reliance Industries Petroleum Products 4.66

Tata Consultancy Services Software 4.39

Larsen & Toubro Construction Project 3.94

20.88%

17.82%

8.78%

6.69%

6.41%

5.67%

5.38%

5.35%

5.17%

3.94%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Software

Banks

Consumer Non Durables

Auto

Petroleum Products

Pharmaceuticals

Auto Ancillaries

Telecom - Services

Finance

Construction Project

(% of NAV)

Tata Motors Auto 3.93

HDFC Bank Banks 3.75

Divi’s Laboratories Pharmaceuticals 3.54

Apollo Tyres Auto Ancillaries 2.71

Motherson Sumi Systems Auto Ancillaries 2.67

Wipro Software 2.47

Axis Bank Banks 2.33

Shree Cements Cement 2.20

ING Vysya Bank Banks 1.83

Bharat Petroleum Corporation Petroleum Products 1.75

State Bank of India Banks 1.60

Maruti Suzuki India Auto 1.57

Nestle India Consumer Non Durables 1.52

Dr. Reddy's Laboratories Pharmaceuticals 1.51

Oil India Oil 1.44

Aditya Birla Nuvo Services 1.34

Crompton Greaves Industrial Capital Goods 1.14

Tata Steel Ferrous Metals 1.04

Sesa Sterlite Minerals/Mining 1.02

Bank of Baroda Banks 0.96

Sun TV Network Media & Entertainment 0.86

Hero MotoCorp Auto 0.76

Indusind Bank Banks 0.71

Colgate Palmolive (India) Consumer Non Durables 0.70

Cipla Pharmaceuticals 0.62

Bank of India Banks 0.57

Oracle Financial Services Software Software 0.56

National Aluminium Company Non - Ferrous Metals 0.45

Bata India Consumer Durables 0.44

Ashok Leyland Auto 0.43

Ultratech Cement Cement 0.42


Net Assets 100.00

SECTOR ALLOCATION (TOP 10) (As on January 31, 2014)


Principal Emerging Bluechip Fund (An open-ended equity scheme)

14.02%

12.83%

10.26%

9.11%

8.86%

5.55%

4.19%

3.88%

3.34%

3.33%

0.00% 4.00% 8.00% 12.00% 16.00%

Pharmaceuticals

Banks

Software

Auto Ancillaries


Industrial Products

Auto

Consumer Durables

Finance

Cement

FUND FEATURES

QAAUM (For the period October to December 2013):` 234.17 crore


Growth Option : ` 34.98 ` 34.72Dividend Option : ` 26.64 ` 26.46


To achieve long-term capital appreciation by investing in equity & equity relatedinstruments of Mid Cap & Small Cap companies.



October 15, 2010 1.0000 27.4300

June 19, 2009 4.0000 19.3500






Beta^ 0.90




Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.8969% risk free rate of return (91 days - T Bill Rate as on Jan. 29, 2014).** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.

MARKET CAP ALLOCATION (As on January 31, 2014)

% of NAV

Equity and equity related instruments of Mid Cap Companies 81.92

Equity and equity related instruments of Small Cap Companies 10.10

Equity and equity related instruments of Companies other thanMid & Small Cap 6.46

Cash and Money Market / Fixed Income Securities(including MIBOR Linked Short Term Papers & Securitised Debt) 1.12

Derivatives 0.40

Market Cap Range for CNX Midcap StocksAs on December 31, 2013 ` 55,985.48 Cr – ` 1,506.02 Crs



Equity 98.48

Amara Raja Batteries Auto Ancillaries 4.27

Tech Mahindra Software 4.13

Divi's Laboratories Pharmaceuticals 3.19

The Federal Bank Banks 3.16

IPCA Laboratories Pharmaceuticals 3.08

Aurobindo Pharma Pharmaceuticals 2.87


The Jammu & Kashmir Bank Banks 2.78


Kaveri Seed Company Consumer Non Durables 2.74



Eicher Motors Auto 2.44 (% of NAV)



Glenmark Pharmaceuticals Pharmaceuticals 2.10


Sadbhav Engineering Construction Project 2.06

Cummins India Industrial Products 1.88

Britannia Industries Consumer Non Durables 1.84

Oil India Oil 1.82

Escorts Auto 1.75


UPL Pesticides 1.73

Symphony Consumer Durables 1.69

Tata Global Beverages Consumer Non Durables 1.62



Arvind Textile Products 1.56

Lupin Pharmaceuticals 1.55

Gateway Distriparks Transportation 1.54

Asian Paints Consumer Non Durables 1.53


CESC Power 1.36

Torrent Pharmaceuticals Pharmaceuticals 1.23

Power Finance Corporation Finance 1.23

Cox & Kings Transportation 1.21

Bharat Forge Industrial Products 1.18

MT Educare Diversified Consumer Services 1.17

Hindustan Petroleum Corporation Petroleum Products 1.16

Mahindra & Mahindra Financial Services Finance 1.15

Hathway Cable & Datacom Media & Entertainment 1.13

Godrej Industries Consumer Non Durables 1.13

Polaris Financial Technology Software 1.12

Max India Finance 0.96

Graphite India Industrial Products 0.95

Indraprastha Gas Gas 0.93

Hindustan Zinc Non - Ferrous Metals 0.92

Finolex Cables Industrial Products 0.92


NCC Construction Project 0.85

Indiabulls Power Power 0.79

JK Cement Cement 0.78

Kalpataru Power Transmission Power 0.71

Jain Irrigation Systems Industrial Products 0.62

Just Dial Software 0.53

Oriental Bank of Commerce Banks 0.22

Derivatives 0.40

Oriental Bank of Commerce Feb 2014 Stock Futures 0.40


Net Assets 100.00



Principal Growth Fund (An open-ended equity scheme)

FUND FEATURES

QAAUM (For the period October to December 2013):

` 242.05 crore


Growth Plan : ` 60.54 ` 60.16Dividend Plan : ` 27.44 ` 27.26


To achieve long-term capital appreciation.



December 31, 2007 2.5000 37.1400

March 20, 2006 2.5000 24.6400






Beta^ 1.01




Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.8969% risk free rate of return (91 days - T Bill Rate as on Jan. 29, 2014).

** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.



Equity 94.89








Escorts Auto 3.48



Wipro Software 2.29



Raymond Textile Products 2.14







14.32%

12.43%

8.59%

8.24%

7.91%

6.53%

4.88%

4.81%

3.33%

3.09%

0.00% 4.00% 8.00% 12.00% 16.00%

Banks

Software


Auto

Pharmaceuticals

Auto Ancillaries

Petroleum Products

Finance

Industrial Products

Minerals/Mining

(% of NAV)


Zee Entertainment Enterprises Media & Entertainment 1.41







Vardhman Special Steel Textiles - Cotton 1.21

UPL Pesticides 1.15

Cairn India Oil 1.13




NMDC Minerals/Mining 1.09


Dabur India Consumer Non Durables 1.05



Havells India Consumer Durables 0.99




IDFC Finance 0.94

Indiabulls Real Estate Construction 0.94


Prestige Estates Projects Construction 0.85


Oil India Oil 0.83



Jaiprakash Power Ventures Power 0.69

Gujarat Mineral Development Corpn. Minerals/Mining 0.63

Union Bank of India Banks 0.55


Eros International Media Media & Entertainment 0.15

Mile Stone Global Construction Materials 0.03


Net Assets 100.00



Principal Dividend Yield Fund (An open-ended equity scheme)

Oil India Oil 2.23

Hinduja Ventures Media & Entertainment 2.17

NTPC Power 2.04



ACC Cement 1.70

Supreme Industries Industrial Products 1.67

IPCA Laboratories Pharmaceuticals 1.61


Gateway Distriparks Transportation 1.51

Tata Global Beverages Consumer Non Durables 1.51


Castrol India Petroleum Products 1.36

Power Finance Corporation Finance 1.29


Rural Electrification Corporation Finance 1.19

Tamil Nadu Newsprint & Papers Paper 1.17

Hindustan Petroleum Corporation Petroleum Products 1.17

Karur Vysya Bank Banks 1.13

Century Textiles & Industries Cement 1.10

Hindustan Zinc Non - Ferrous Metals 0.97


Mcleod Russel India Consumer Non Durables 0.94



SML Isuzu Auto 0.86



National Buildings Construction Corpn. Construction 0.81

Kolte - Patil Developers Construction 0.77


Syndicate Bank Banks 0.64


Volant Textile Mills Textiles - Cotton 0.01


Net Assets 100.00


FUND FEATURES


` 94.18 crore

NAV per unit (As on January 31, 2014)

Direct Plan Regular Plan



To provide capital appreciation and / or dividend distribution by investing predominantlyin a well-diversified portfolio of companies that have a relatively high dividend yield.



October 12, 2007 1.5000 15.4400

April 24, 2006 1.5000 15.7200

October 3, 2005 0.7500 13.5100

April 20, 2005 0.5000 11.0900

* On face value of ` 10.Past performance may or may not be sustained in the future.Note: All Dividend (`/Unit) figures are Gross Dividend.



Beta^ 1.00




Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.8969% risk free rate of return (91 days - T Bill Rate as on Jan. 29, 2014).** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.



Equity 99.56



Oil & Natural Gas Corporation Oil 3.63


Tata Motors - A Class Auto 3.52

Bajaj Holdings & Investment Finance 3.48


Bajaj Auto Auto 3.35


VST Industries Consumer Non Durables 3.26

The Jammu & Kashmir Bank Banks 3.20


NIIT Technologies Software 2.90





17.42%

14.26%

13.78%

11.79%

5.96%

5.86%

5.49%

4.78%

3.64%

2.80%

0.00% 5.00% 10.00% 15.00% 20.00%

Banks


Auto

Software

Finance

Oil

Petroleum Products

Media & Entertainment

Industrial Products

Cement

(% of NAV)


Principal Index Fund - Nifty (An open-ended index scheme)

FUND FEATURES


` 10.58 crore





To invest principally in securities that comprise CNX Nifty (NSE) and subject to trackingerrors endeavour to attain results commensurate with the Nifty.



December 24, 2008 3.7500 15.7934




Beta^ 0.99





** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.

# Calculated as year to date ratio to average AUM.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.

TRACKING DEVIATION

1.07%*

* Trailing 12 months ended January 31, 2014 (Annualized).



Equity 99.12










Oil & Natural Gas Corporation Oil 2.42

Sun Pharmaceuticals Industries Pharmaceuticals 2.20

Mahindra & Mahindra Auto 2.04

Hindustan Unilever Consumer Non Durables 2.00



Wipro Software 1.87(% of NAV)

18.36%

18.09%

11.97%

8.67%

7.26%

6.84%

6.16%

3.99%

3.37%

2.93%

0.00% 5.00% 10.00% 15.00% 20.00%

Software

Banks


Auto

Petroleum Products

Finance

Pharmaceuticals


Oil

Power




NTPC Power 1.29


Kotak Mahindra Bank Banks 1.24






Power Grid Corporation of India Power 1.05






Grasim Industries Cement 0.81

GAIL (India) Gas 0.80

Coal India Minerals/Mining 0.78

Hindalco Industries Non - Ferrous Metals 0.70

Bharat Heavy Electricals Industrial Capital Goods 0.68

Ambuja Cements Cement 0.60

Tata Power Company Power 0.59

IDFC Finance 0.58



Jindal Steel & Power Ferrous Metals 0.47

ACC Cement 0.47


Punjab National Bank Banks 0.41

DLF Construction 0.30

Ranbaxy Laboratories Pharmaceuticals 0.25

Jaiprakash Associates Construction 0.24


Net Assets 100.00



Principal SMART Equity Fund (An open-ended equity scheme)







Oil India Oil 1.18

















Commercial Paper 19.38

Sabero Organics Gujarat A1+ 19.38


Net Assets 100.00

SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on January 31, 2014)

FUND FEATURES


` 56.58 crore





The primary objective of the scheme is to seek to generate long term capital appreciationwith relatively lower volatility through systematic allocation of funds into equity; and indebt /money market instruments for defensive purposes. The Scheme will decide onallocation 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 debtand/or money market instruments and vice versa.



Beta^ 0.97






# 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 NAV

Equity 79.11















Wipro Software 2.02



(% of NAV)

17.13%

14.62%

7.22%

5.49%

5.26%

4.79%

4.43%

4.39%

4.24%

3.05%

0.00% 5.00% 10.00% 15.00% 20.00%

Software

Banks


Auto

Petroleum Products

Pharmaceuticals

Auto Ancillaries

Telecom - Services

Finance



Principal Personal Tax Saver Fund (An open-ended equity linked savings scheme) FreeAccidentalDeath Insurance150 times thenumber ofunits##

FUND FEATURES


` 339.14 crore


Direct Plan: ` 102.54

Regular Plan: ` 101.91


To provide long term growth of capital. The Investment Manager will aim to achieve areturn on assets in excess of the performance of S&P BSE 100 Index.



March 25, 2008 40.0000 124.66

February 26, 2008 20.0000 172.57

December 31, 2007 11.0000 221.26

October 30, 2007 11.0000 190.53

March 13, 2006 10.0000 118.96

November 2, 2005 40.0000 124.43




Beta^ 0.90








Equity 97.33















Wipro Software 2.49

Axis Bank Banks 2.36## Conditions Apply. Also, subject to a maximum of ` 1 lakh.

21.01%

18.08%

8.90%

6.69%

6.47%

5.70%

5.43%

5.42%

5.18%

4.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Software

Banks


Auto

Petroleum Products

Pharmaceuticals

Auto Ancillaries

Telecom - Services

Finance


(% of NAV)








Oil India Oil 1.46


















Net Assets 100.00



Principal Tax Savings Fund (An open-ended equity linked savings scheme) FreePersonalAccident DeathInsurance upto` 5 lacs##FUND FEATURES


` 198.68 crore


Direct Plan: ` 89.21

Regular Plan: ` 88.70


To build a high quality growth-oriented portfolio to provide long-term capital gains tothe investors. The scheme aims at providing returns through capital appreciation.



March 31, 2008 8.0000 90.1200

January 15, 2007 5.0000 83.6600




Beta^ 1.00








Equity 95.88








Escorts Auto 3.52



Wipro Software 2.31



















UPL Pesticides 1.17














IDFC Finance 0.95





Oil India Oil 0.85




Gujarat Mineral Development Corpn. Minerals/Mining 0.65





Net Assets 100.00


## Conditions Apply.

14.50%

12.53%

8.65%

8.32%

7.98%

6.58%

4.93%

4.85%

3.37%

3.14%

0.00% 4.00% 8.00% 12.00% 16.00%

Banks

Software


Auto

Pharmaceuticals

Auto Ancillaries

Petroleum Products

Finance

Industrial Products

Minerals/Mining

(% of NAV)


Principal Balanced Fund (An open-ended balanced scheme)

9.94%

8.55%

5.97%

5.64%

5.40%

4.55%

3.41%

3.33%

2.31%

2.09%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Banks

Software


Auto

Pharmaceuticals

Auto Ancillaries

Petroleum Products

Finance

Industrial Products

Minerals/Mining

(% of NAV)











UPL Pesticides 0.82
















IDFC Finance 0.63


Oil India Oil 0.62





Gujarat Mineral Development Corporation Minerals/Mining 0.41




Certificate of Deposit 12.49

Indian Bank A1+ 12.49

Treasury Bill 0.19

T-Bill 91 Day 2014 Sovereign 0.19

Sovereign 5.86

GOI 08.28% - 21-SEP-27 Sovereign 5.86

Bonds & NCDs 12.80

Power Finance Corporation AAA 12.80


Net Assets 100.00


FUND FEATURES


` 15.59 crore




To provide long term appreciation and current income by investing in a portfolio ofequity, equity related securities and fixed income securities.



March 24, 2008 2.5000 14.9200

November 5, 2007 6.0000 23.9000

November 9, 2005 3.2000 16.4100

Past performance may or may not be sustained in the future. * On face value of ` 10.Note: All Dividend (`/Unit) figures are Gross Dividend.



Beta^ 1.02






AVERAGE MATURITY (As on January 31, 2014)

3.24 years

MODIFIED DURATION (As on January 31, 2014)

2.05 years


Instrument Industry / Rating % of NAV

Equity 65.48




Housing Development Finance Corporation Finance 2.70




Escorts Auto 2.39



Wipro Software 1.60










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.)


Instrument Industry/Rating % of NAV


State Bank of Patiala A1+ 15.60

Treasury Bill 0.44


Sovereign 28.66

GOI 8.12% 10-DEC-20 Sovereign 16.09

GOI 08.28% 21-SEP-27 Sovereign 12.57

Bonds & NCDs 29.79

LIC Housing Finance AAA 16.76

Fullerton India Credit Company AA+ 5.07

Lafarge India AA+ 3.34

Sundaram Finance AA+ 3.02

Dr. Reddy's Laboratories AA+ 1.60

Investment Funds/Mutual Funds 8.19

Principal Index Fund - Nifty - Direct - Growth Plan Mutual Funds 8.19


Net Assets 100.00

COMPOSITION BY ASSETS (As on January 31, 2014)

Industry / Ratings % of NAV

Bonds & NCDs 29.79

Sovereign 28.66


Investment Funds/Mutual Funds 8.19

Treasury Bill 0.44


RATING PROFILE (As on January 31, 2014)

FUND FEATURES


` 31.35 crore



Growth Plan : ` 24.7805 ` 24.5694Dividend Plan (Monthly): ` 10.6812 ` 10.5902Dividend Plan (Quarterly): ` 12.1127 ` 12.0142


To generate regular income through investments in fixed income securities so as tomake periodical income distribution to the Unitholders and also to generate long-termcapital appreciation by investing a portion of the Scheme’s assets in equity and equityrelated instruments.

DIVIDEND UPDATE

Date Regular Plan Direct Plan

Dividend Cum Dividend Cum

(`/Unit)* Dividend (`/Unit)* Dividend

NAV NAV

Monthly Dividend (Last 3 Months)

June 24, 2013 0.0400 10.8189 0.0400 10.8605

May 24, 2013 0.0800 11.0859 0.0800 11.1207

April 23, 2013 0.0500 10.8476 0.0500 10.8742

Quarterly Dividend (Last 3 Quarters)

June 24, 2013 0.1000 12.3283 0.1000 12.3757

March 22, 2013 0.0500 12.0959 0.0500 12.1172

December 24, 2012 0.0500 11.9729 – –


RATIO (As on January 31, 2014)

Portfolio Turnover Ratio** –



4.29 years


2.90 years

(% of NAV)

29.10%

16.76%

15.60%

25.51%

13.03%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Sovereign

AAA

A1+

AA+

Cash and Other Assets (incl. MF Units)


Principal Government Securities Fund(An open-ended dedicated gilt scheme investing in government securities)


Instrument Rating % of NAV

Treasury Bill 3.75


Sovereign 79.69



GOI 8.83% 25-NOV-23 Sovereign 8.90

GOI 07.28% 03-JUN-19 Sovereign 8.28

GOI 08.24% 15-FEB-27 Sovereign 8.24

GOI 07.16% 20-MAY-23 Sovereign 3.11


Net Assets 100.00


Ratings % of NAV

Sovereign 79.69

Treasury Bill 3.75



FUND FEATURES


` 56.12 crore



Growth Option: ` 23.7894 ` 23.6612

Quarterly Dividend Option: ` 11.4563 ` 11.3933

Annual Dividend Option: ` 13.7309 ` 13.3114


To generate return through investment in sovereign securities and thus provide capitalgains and income distribution to its Unitholders.

DIVIDEND UPDATE




NAV NAV

Quarterly Dividend Option (Last 3 Quarters)

June 24, 2013 0.3000 12.1624 0.3000 12.1911

March 22, 2013 0.1500 11.7404 0.1500 11.7533

December 24, 2012 0.1500 11.5500 – –

Annual Dividend Option (Last 3 Years)

September 24, 2013 0.7559 13.7794 0.4192 13.8300

September 24, 2012 0.8000 14.1275 – –

September 23, 2011 0.6000 13.7418 – –



7.37 years


4.74 years

MATURITY PROFILE

Period Portfolio (%)

Less than 3 years 3.75%

5 - 10 years 54.11%

Above 10 years 25.58%

Cash and Other Assets 16.56%

83.44%

16.56%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Sovereign

Cash and Other Assets

(% of NAV)


Principal Income Fund - Long Term Plan (An open-ended income scheme)



Treasury Bill 3.16


Sovereign 53.61


GOI 8.83% 25-NOV-23 Sovereign 8.43


GOI 07.16% 20-MAY-23 Sovereign 5.89

GOI 07.28% 03-JUN-19 Sovereign 3.92

GOI 08.24% 15-FEB-27 Sovereign 3.90

Bonds & NCDs 24.94

Housing Development Finance Corporation AAA 8.35


Export Import Bank of India AAA 4.20



Net Assets 100.00


Ratings % of NAV

Sovereign 53.61

Bonds & NCDs 24.94

Treasury Bill 3.16



FUND FEATURES


` 142.76 crore



Growth Option: ` 20.8556 ` 20.6836

Dividend Option (Quarterly): ` 12.9322 ` 12.8245

Dividend Option (Annual): ` 11.7983 ` 11.4495


To generate regular income and capital appreciation/accretion through investment indebt instruments and related securities besides preservation of capital.

DIVIDEND UPDATE




NAV NAV

Quarterly Dividend Option (Last 3 Quarters)

June 24, 2013 0.3000 13.2785 0.3000 13.3264

March 22, 2013 0.2000 13.0003 0.2000 13.0218

December 24, 2012 0.2000 12.8727 – –

Annual Dividend Option (Last 3 Years)

September 24, 2013 0.7029 11.8468 0.4597 11.9117

September 24, 2012 1.0000 12.3525 – –

September 23, 2011 0.6000 11.7136 – –



5.73 years


3.89 years

MATURITY PROFILE

Period Portfolio (%)

Less than 1 year 3.16

1 - 3 year 8.35

3 - 5 year 16.59

5 - 10 year 42.28

Above 10 years 11.33


56.77%

24.94%

18.29%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Sovereign

AAA


(% of NAV)


Principal Debt Opportunities Fund - Corporate Bond Plan(An open-ended debt scheme)




JK Lakshmi Cement A1+ 25.06

Magma Housing Finance A1+ 12.39

Essel Mining & Industries A1+ 9.73

Treasury Bill 0.25


Bonds & NCDs 30.06

Cholamandlam Investment & Finance Company AA 12.37

Indian Oil Corporation AAA 9.72


Tata Capital Financial Services AA+ 2.95


Net Assets 100.00


Industry / Ratings % of NAV


Bonds & NCDs 30.06

Treasury Bill 0.25



FUND FEATURES


` 4.28 crore



Growth Option: ` 1938.1566 ` 1927.5687

Dividend Option (Monthly): ` 1239.0456 ` 1235.9503


The primary objective is to generate income and capital gains through investments in aportfolio of securities issued by Private and Public Sector Companies.

DIVIDEND UPDATE




NAV NAV


January 24, 2014 9.5265 1245.0450 10.1309 1248.5948

December 24, 2013 9.8755 1245.3940 10.4991 1248.9630

November 22, 2013 5.2130 1240.7315 5.8526 1244.3165

* On face value of ` 1,000/-.


All Dividend (`/Unit) figures are Gross Dividend.


0.65 years


0.54 year

(% of NAV)

47.18%

14.74%

12.37%

0.25%

22.51%

2.95%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

A1+

AAA

AA

AA+

Sovereign



Principal Income Fund – Short Term Plan (An open-ended income scheme)

FUND FEATURES


` 201.01 crore



Growth Option: ` 22.0447 ` 21.8921Dividend Option (Monthly): ` 12.8373 ` 12.8036


To generate regular income and capital appreciation/ accretion through investment indebt instruments and related securities besides preservation of capital and has beendesigned to achieve stable returns over shorter-term investment horizons.

DIVIDEND UPDATE




NAV NAV


January 24, 2014 0.1024 12.9218 0.1110 12.9628

December 24, 2013 0.0994 12.9188 0.1081 12.9599

November 22, 2013 0.0437 12.8631 0.0516 12.9034



1.90 years


1.59 years




Canara Bank A1+ 19.48


Treasury Bill 0.62


Sovereign 6.28

GOI 07.28% 03JUN19 Sovereign 6.28

35.00%

34.09%

9.65%

6.90%

4.77%

9.59%

0.00% 10.00% 20.00% 30.00% 40.00%

A1+

AAA

AA+

AA

Sovereign


(% of NAV)

Bonds & NCDs 53.33



Tata Motors AA 6.61

Tata Capital Financial Services AA+ 3.88


Tata Sons AAA 3.36

Rural Electrification Corporation AAA 3.35


Cholamandlam Investment & Finance Company AA 2.98

Sundaram Finance AA+ 2.41


Net Assets 100.00


Ratings % of NAV

Bonds & NCDs 53.33


Sovereign 6.28

Treasury Bill 0.62




Principal Bank CD Fund (An open-ended debt scheme)




State Bank of Hyderabad A1+ 23.53

Bank of India A1+ 23.49


Andhra Bank A1+ 16.91

Oriental Bank of Commerce A1+ 1.41

Treasury Bill 0.17


Bonds & NCDs 9.46



Net Assets 100.00


Ratings % of NAV


Bonds & NCDs 9.46

Treasury Bill 0.17



FUND FEATURES


` 86.99 crore



Growth Option: ` 1623.1123 ` 1618.7027



The objective is to generate returns by primarily investing in Bank CDs. Bank CDs provideliquidity and a relatively lower credit risk.

DIVIDEND UPDATE




NAV NAV


January 24, 2014 7.9922 1132.6183 8.2413 1133.964

December 24, 2013 10.4239 1135.0500 10.6837 1136.4064

November 22, 2013 7.2431 1131.8692 7.4757 1133.1984

* On face value of ` 1,000/-




31 days


30 days

88.82%

9.46%

0.17%

1.55%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

AAA

Sovereign


(% of NAV)


93.83%

1.31%

1.12%

3.74%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

AAA

Sovereign


Principal Debt Opportunities Fund - Conservative Plan(An open-ended debt scheme)

FUND FEATURES


` 275.94 crore



Growth Option: ` 2009.3147 ` 1998.7260

Dividend Option (Daily): ` 1001.3376 ` 1001.2300

Dividend Option (Weekly): ` 1002.3717 ` 1000.5603



To generate regular income and capital appreciation through investments in debtsecurities and money market instruments.

DIVIDEND UPDATE




NAV NAV


January 24, 2014 7.5979 1146.7172 8.6049 1149.6788

December 24, 2013 8.1432 1147.2625 9.2323 1150.3062

November 22, 2013 7.8679 1146.9872 8.4714 1149.5453





98 days


98 days





Union Bank of India A1+ 11.74



Corporation Bank A1+ 6.08

The South Indian Bank A1+ 1.31



EID Parry India A1+ 7.85

Chambal Fertilizers & Chemicals A1+ 6.52

Volkswagen Finance A1+ 6.43

Godrej Industries A1+ 4.72

Housing Development Finance Corporation A1+ 3.93

Treasury Bill 1.12


Bonds & NCDs 1.31

Tata Sons AAA 1.31


Net Assets 100.00


Ratings % of NAV



Bonds & NCDs 1.31

Treasury Bill 1.12



(% of NAV)

Past performance is no guarantee of future result. (++ for rating methodology please refer page 34.)

CreditRisk Rating[ICRA] AAAmfs ++


Principal Cash Management Fund (An open-ended liquid scheme)

85.02%

12.65%

0.97%

1.36%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

Unrated

Sovereign


(% of NAV)

CreditRisk Rating[ICRA] A1+mfs ++

Past performance is no guarantee of future result. (++ for rating methodology please refer page 34.)



SREI Equipment Finance A1+ 7.17

EID Parry India A1+ 6.83

Supreme Industries A1+ 4.66

Religare Finvest A1+ 3.51



Vardhman Special Steel A1+ 1.76


Kotak Commodity Services A1+ 1.44

CESC A1+ 0.36

Treasury Bill 0.97


Fixed Deposit 12.65

The South Indian Bank Unrated 7.23

Canara Bank Unrated 5.42


Net Assets 100.00


Ratings % of NAV



Fixed Deposit 12.65

Treasury Bill 0.97



FUND FEATURES


` 2066.99 crore



Growth Option: ` 1229.5594 ` 1228.1681Dividend Option (Daily): ` 1000.3870 ` 1000.1456Dividend Option (Weekly): ` 1007.2241 ` 1006.4852Dividend Option (Monthly): ` 1024.4413 ` 1024.4049


To provide investors with as high a level of income available from short-term investmentsas is considered consistent with preservation of capital and maintenance of liquidity, byinvesting in a portfolio of money market and investment grade debt instruments.

DIVIDEND UPDATE


Dividend Cum Dividend Cum(`/Unit)* Dividend (`/Unit)* Dividend

NAV NAV


January 24, 2014 7.6539 1030.3768 7.7497 1030.4894

December 24, 2013 7.9556 1030.6800 8.0651 1030.8063

November 22, 2013 7.6234 1030.3478 7.7051 1030.4463





32 days


32 days




Bank of Baroda A1+ 12.60



State Bank of Mysore A1+ 5.38

Oriental Bank of Commerce A1+ 3.60

The South Indian Bank A1+ 1.81


Central Bank of India A1+ 1.80

The Jammu & Kashmir Bank A1+ 1.80

Andhra Bank A1+ 0.50

Principal Global Opportunities Fund (An open-ended Fund of Funds scheme)

FUND FEATURES


` 27.44 crore



Growth Option: ` 21.4774 ` 21.4031

Dividend Option: ` 21.4774 ` 21.4031


To provide long term capital appreciation by predominantly investing in overseas mutualfund schemes, and a certain portion of its corpus in Money Market Securities and/orunits of Money Market / Liquid Schemes of Principal Mutual Fund.


Instrument % of NAV

Foreign Securities

I. Units of Mutual Fund / Unit Trust 98.40Principal Global Investors Funds -Emerging Markets Equity Fund

II. Cash and Other Current Assets 1.60

Net Assets 100.00

Principal Retail Money Manager Fund (An open-ended liquid scheme)

FUND FEATURES


` 12.36 crore



Growth Option: ` 1423.8184 ` 1422.2805

Dividend Option (Daily): N.A. ` 1005.4300

Dividend Option (Weekly): N.A. ` 1012.5659



To generate steady return by investing in debt and money market securities.

DIVIDEND UPDATE


Dividend Cum Dividend Cum(`/Unit)* Dividend (`/Unit)* Dividend

NAV NAV


January 24, 2014 8.1551 1066.9827 8.2457 1067.1127

December 24, 2013 8.5223 1067.3515 8.6164 1067.4850

November 22, 2013 8.2611 1067.0903 8.3475 1067.2161





19 days


19 days

80.16%

0.21%

19.63%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

Sovereign


(% of NAV)








Godrej Industries A1+ 10.66


Religare Finvest A1+ 4.22

Vardhman Special Steel A1+ 2.11


Treasury Bill 0.21



Net Assets 100.00


Ratings % of NAV



Treasury Bill 0.21





Principal Debt Savings Fund (An open-ended income fund)

- Retail Plan

43.40%

36.67%

8.52%

11.04%

0.37%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

AAA

A1+

AA+

Sovereign


FUND FEATURES


` 39.16 crore


Direct Plan Regular PlanGrowth Plan: ` 22.2104 ` 21.9992Dividend Plan (Monthly): N.A. ` 10.2386Dividend Plan (Quarterly): ` 11.9453 ` 11.8745


To seek to generate stable returns and capital appreciation through investment in Debtinstruments and related securities over medium to long term investment horizon.

DIVIDEND UPDATE




NAV NAV


January 24, 2014 0.0909 10.3379 – –

December 24, 2013 0.0866 10.3336 – –

November 22, 2013 0.0424 10.2894 – –

Quarterly Dividend (Last 3 Quarters)

December 24, 2013 0.0831 11.863 0.1270 11.9678

June 24, 2013 0.1500 11.9059 0.1500 11.9648

March 22, 2013 0.0700 11.6354 0.0700 11.6675




RATIO (As on January 31, 2014)

Portfolio Turnover Ratio** –



1.66 years


1.32 years








Treasury Bill 0.37


Bonds & NCDs 51.92




Power Grid Corporation of India AAA 3.43


Net Assets 100.00


Industry / Ratings of NAV

Bonds & NCDs 51.92



Treasury Bill 0.37



(% of NAV)


Principal Retail Equity Savings Fund (An open-ended equity scheme)

Trent Retailing 1.83

Power Grid Corporation of India Power 1.82

Mahindra & Mahindra Auto 1.81

ACC Cement 1.81



Karur Vysya Bank Banks 1.73


Petronet LNG Gas 1.69


Sun Pharmaceuticals Industries Pharmaceuticals 1.68

GlaxoSmithKline Pharmaceuticals Pharmaceuticals 1.67


NTPC Power 1.65

Hindustan Unilever Consumer Non Durables 1.65


Biocon Pharmaceuticals 1.59


Emami Consumer Non Durables 1.53

Oil India Oil 1.51

Coal India Minerals/Mining 1.50

Kotak Mahindra Bank Banks 1.49


Godrej Consumer Products Consumer Non Durables 1.45


Marico Kaya Enterpries# Consumer Non Durables 0.02


Net Assets 100.00


FUND FEATURES


` 20.00 crore



Growth Plan : ` 83.82 ` 82.44Dividend Plan : N.A. ` 9.46


To provide long term capital appreciation and regular income by investing in equity andequity related instruments and also in debt and money market instruments



Beta^ 0.77







Instrument Industry / Rating % of NAV

Equity 99.87

S.E. Investments Finance 8.79

Bhushan Steel Ferrous Metals 3.75

Bosch Auto Ancillaries 2.40

Castrol India Petroleum Products 2.34

Tata Chemicals Chemicals 2.19


Fortis Healthcare Healthcare Services 2.17


Cadila Healthcare Pharmaceuticals 2.06

Grasim Industries Cement 2.02

Container Corporation of India Transportation 2.02


Bharat Electronics Industrial Capital Goods 1.96







Thermax Industrial Capital Goods 1.89


GAIL (India) Gas 1.87




(% of NAV)

15.12%

13.65%

10.34%

7.42%

6.92%

6.26%

4.10%

3.92%

3.85%

3.75%

0.00% 4.00% 8.00% 12.00% 16.00%

Pharmaceuticals


Finance

Cement

Auto

Banks

Petroleum Products

Software

Industrial Capital Goods

Ferrous Metals


Returns (As on December 31, 2013)

PRINCIPAL INDEX FUND - NIFTY

Performance Scheme Scheme’s Benchmark Additional Benchmark(CNX Nifty Index) (S&P BSE Sensex)

Date ^Returns $PTP Returns ^Returns $PTP Returns ^Returns $PTP Returns(%) (`) (%) (`) (%) (`)

31-Dec-12 to 31-Dec-13 7.71 10771.15 6.76 10675.52 8.98 10897.72

30-Dec-11 to 31-Dec-12 27.24 12723.80 27.70 12769.72 25.70 12569.92

31-Dec-10 to 30-Dec-11 -24.31 7569.44 -24.62 7538.19 -24.64 7535.64

Since Inception27-Jul-99 to 31-Dec-13 10.70 43402.90 11.49 48127.65 11.16 46091.05

PRINCIPAL GLOBAL OPPORTUNITIES FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(MSCI World Index) (CNX Nifty Index)


31-Dec-12 to 31-Dec-13 5.39 10539.24 26.25 12625.21 6.76 10675.52

30-Dec-11 to 31-Dec-12 21.47 12147.24 13.07 11306.68 27.70 12769.72

31-Dec-10 to 30-Dec-11 -2.60 9739.76 -7.56 9243.71 -24.62 7538.19

Since Inception29-Mar-04 to 31-Dec-13 8.80 22792.90 4.17 14906.50 13.95 35776.51

PRINCIPAL LARGE CAP FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(S&P BSE 100 Index) (CNX Nifty Index)


31-Dec-12 to 31-Dec-13 3.03 10302.83 5.87 10587.34 6.76 10675.52

30-Dec-11 to 31-Dec-12 33.99 13398.78 29.96 12995.80 27.70 12769.72

31-Dec-10 to 30-Dec-11 -25.71 7429.50 -25.73 7426.64 -24.62 7538.19

Since Inception11-Nov-05 to 31-Dec-13 15.20 31640.00 11.58 24404.22 11.76 24734.66

PRINCIPAL PERSONAL TAX SAVER FUND


Date Returns $PTP Returns Returns $PTP Returns Returns $PTP Returns(%) (`) (%) (`) (%) (`)

31-Dec-12 to 31-Dec-13 3.32 10332.18 5.87 10587.34 6.76 10675.52

30-Dec-11 to 31-Dec-12 34.83 13482.62 29.96 12995.80 27.70 12769.72

31-Dec-10 to 30-Dec-11 -28.67 7133.32 -25.73 7426.64 -24.62 7538.19


SCHEMES MANAGED BY MR. RAJAT JAIN

SCHEMES MANAGED BY MR. ANUPAM TIWARI

Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis.$ PTP (Point to Point) Returns is based on standard investment of ` 10,000/- made at the beginning of relevant period.Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable.^ Regular Plan - Growth Option [Direct Plan - N.A., Since launched on January 1, 2013]

SCHEMES MANAGED BY RUPALI PANDIT

SCHEMES MANAGED BY BEKXY KURIAKOSE

PRINCIPAL GOVERNMENT SECURITIES FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(I-Sec Composite (CRISIL 10 Year

Index) Gilt Index)


31-Dec-12 to 31-Dec-13 2.30 10230.09 4.12 10411.73 -0.68 9932.21

30-Dec-11 to 31-Dec-12 9.42 10941.58 11.09 11108.51 10.67 11066.79

31-Dec-10 to 30-Dec-11 3.73 10373.05 6.55 10654.70 1.91 10191.37

Since Inception23-Aug-01 to 31-Dec-13 7.14 23458.20 N.A. N.A. N.A. N.A.

PRINCIPAL DEBT OPPORTUNITIES FUND - CORPORATE BOND PLAN

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil Composite Bond (CRISIL 10 Year

Fund Index) Gilt Index)


31-Dec-12 to 31-Dec-13 7.03 10702.64 3.79 10378.55 -0.68 9932.21

30-Dec-11 to 31-Dec-12 9.37 10936.76 9.38 10938.34 10.67 11066.79

31-Dec-10 to 30-Dec-11 8.85 10885.22 6.90 10689.99 1.91 10191.37

Since Inception14-Sep-04 to 31-Dec-13 7.23 19149.16 5.78 16869.48 4.54 15108.87

PRINCIPAL INCOME FUND - LONG TERM PLAN

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil Composite (CRISIL 10 YearBond Fund Index) Gilt Index)


31-Dec-12 to 31-Dec-13 4.06 10405.70 3.79 10378.55 -0.68 9932.21

30-Dec-11 to 31-Dec-12 11.18 11118.25 9.38 10938.34 10.67 11066.79

31-Dec-10 to 30-Dec-11 7.93 10793.50 6.90 10689.99 1.91 10191.37

Since Inception9-May-03 to 31-Dec-13 7.00 20557.40 5.45 17595.57 4.63 16204.62

PRINCIPAL SMART EQUITY FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil Balanced (CNX Nifty Index)

Fund Index)


31-Dec-12 to 31-Dec-13 5.41 10541.01 6.05 10604.69 6.76 10675.52

30-Dec-11 to 31-Dec-12 30.67 13067.27 21.28 12127.97 27.70 12769.72

31-Dec-10 to 30-Dec-11 -13.17 8683.17 -14.39 8560.75 -24.62 7538.19

Since Inception16-Dec-10 to 31-Dec-13 6.40 12080.00 3.93 11244.83 1.92 10597.18


SCHEMES MANAGED BY MR. P.V.K. MOHAN

SCHEMES MANAGED BY MR. DHIMANT SHAH

PRINCIPAL GROWTH FUND



31-Dec-12 to 31-Dec-13 8.31 10831.16 4.38 10438.05 6.76 10675.52

30-Dec-11 to 31-Dec-12 46.01 14600.96 30.98 13098.46 27.70 12769.72

31-Dec-10 to 30-Dec-11 -30.91 6908.80 -26.95 7304.51 -24.62 7538.19

Since Inception25-Oct-00 to 31-Dec-13 14.89 62420.00 14.84 62034.66 13.52 53247.74

PRINCIPAL EMERGING BLUECHIP FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(CNX Midcap Index) (CNX Nifty Index)


31-Dec-12 to 31-Dec-13 5.84 10584.24 -5.10 9489.95 6.76 10675.52

30-Dec-11 to 31-Dec-12 55.03 15503.20 39.16 13915.75 27.70 12769.72

31-Dec-10 to 30-Dec-11 -34.80 6527.32 -31.07 6900.43 -24.68 7538.19


PRINCIPAL TAX SAVINGS FUND



31-Dec-12 to 31-Dec-13 8.55 10854.65 4.38 10438.05 6.76 10675.52

30-Dec-11 to 31-Dec-12 46.51 14651.12 30.98 13098.46 27.70 12769.72

31-Dec-10 to 30-Dec-11 -30.38 6961.65 -26.95 7304.51 -24.62 7538.19



Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis.$ PTP (Point to Point) Returns is based on standard investment of ` 10,000/- made at the beginning of relevant period.Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable.^ Regular Plan - Growth Option [Direct Plan - N.A., Since launched on January 1, 2013]

PRINCIPAL BALANCED FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil Balanced Fund Index) (CNX Nifty Index)


31-Dec-12 ro 31-Dec-13 7.22 10722.43 6.05 10604.69 6.76 10675.52

30-Dec-11 to 31-Dec-12 34.18 13418.37 21.28 12127.97 27.70 12769.72

31-Dec-10 to 30-Dec-11 -22.03 7796.82 -14.39 8560.75 -24.62 7538.19

Since Inception14-Jan-00 to 31-Dec-13 9.74 36660.00 N.A. N.A. 10.20 38847.64

PRINCIPAL BANK CD FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(CRISIL Liquid Fund (CRISIL 1 Year

Index) T-Bill Index)


31-Dec-12 to 31-Dec-13 9.07 10907.23 9.03 10903.13 5.86 10586.45

30-Dec-11 to 31-Dec-12 9.37 10936.87 8.54 10854.31 8.11 10810.71

31-Dec-10 to 30-Dec-11 9.18 10917.59 8.15 10814.83 6.42 10642.32


PRINCIPAL INCOME FUND - SHORT TERM PLAN

Performance Scheme Scheme’s Benchmark Additional Benchmark(CRISIL Short-Term (CRISIL 10 YearBond Fund Index) Gilt Index)


31-Dec-12 to 31-Dec-13 7.83 10782.90 8.27 10827.20 -0.68 9932.21

30-Dec-11 to 31-Dec-12 10.22 11021.73 9.15 10914.85 10.67 11066.79

31-Dec-10 to 30-Dec-11 9.09 10909.20 7.84 10784.33 1.91 10191.37


SCHEMES MANAGED BY MR. GURVINDER SINGH WASAN

PRINCIPAL RETAIL EQUITY SAVINGS FUND



31-Dec-12 to 31-Dec-13 -2.96 9703.91 5.87 10587.34 6.76 10675.52

30-Dec-11 to 31-Dec-12 22.36 12236.26 29.96 12995.80 27.70 12769.72

31-Dec-10 to 30-Dec-11 -22.65 7735.42 -25.73 7426.64 -24.62 7538.19

Since Inception7-Jan-98 to 31-Dec-13 14.36 85540.00 12.73 67918.97 11.65 58240.95

PRINCIPAL DIVIDEND YIELD FUND

Performance Scheme Scheme’s Benchmark Additional Benchmark(CNX Dividend (CNX Nifty Index)

Opportunities Index)


31-Dec-12 to 31-Dec-13 -5.30 9470.07 -7.18 9281.94 6.76 10675.52

30-Dec-11 to 31-Dec-12 41.94 14193.72 30.53 13053.16 27.70 12769.72

31-Dec-10 to 30-Dec-11 -26.84 7315.91 -14.42 8557.85 -24.68 7538.19

Since Inception15-Oct-04 to 31-Dec-13 10.38 24840.00 N.A. N.A. 14.60 35119.78



Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis.$ PTP (Point to Point) Returns is based on standard investment of ` 10,000/- made at the beginning of relevant period.Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable.^ Regular Plan - Growth Option [Direct Plan - N.A., Since launched on January 1, 2013].

SCHEMES MANAGED BY MR. PANKAJ JAIN

PRINCIPAL RETAIL MONEY MANAGER FUND




31-Dec-12 to 31-Dec-13 9.78 10978.23 9.03 10903.13 5.86 10586.45

31-Dec-11 to 31-Dec-12 10.04 11004.41 8.54 10854.31 8.11 10810.71

31-Dec-10 to 30-Dec-11 6.91 10691.07 8.15 10814.83 6.42 10642.32


PRINCIPAL CASH MANAGEMENT FUND




31-Dec-12 to 31-Dec-13 9.17 10917.45 9.03 10903.13 5.86 10586.45

31-Dec-11 to 31-Dec-12 9.68 10968.01 8.54 10854.31 8.11 10810.71

31-Dec-10 to 30-Dec-11 8.91 10891.32 8.15 10814.83 6.42 10642.32

Since Inception30-Aug-04 to 31-Dec-13 7.41 19506.14 6.80 18496.20 5.48 16454.50

PRINCIPAL DEBT OPPORTUNITIES FUND - CONSERVATIVE PLAN




31-Dec-12 to 31-Dec-13 8.98 10898.32 9.03 10903.13 5.86 10586.45

30-Dec-11 to 31-Dec-12 9.93 10993.17 8.54 10854.31 8.11 10810.71

31-Dec-10 to 30-Dec-11 9.16 10915.75 8.15 10814.83 6.42 10642.32

Since Inception14-Sep-04 to 31-Dec-13 7.66 19872.71 6.82 18467.95 5.49 16440.99

PRINCIPAL DEBT SAVINGS FUND - MONTHLY INCOME PLAN

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil MIP Blended Index) (Crisil 10 year Gilt Index)


31-Dec-12 to 31-Dec-13 1.24 10123.90 4.41 10441.40 -0.68 9932.21

30-Dec-11 to 31-Dec-12 10.28 11027.79 12.12 11211.77 10.67 11066.79

31-Dec-10 to 30-Dec-11 2.59 10259.41 1.72 10172.33 1.91 10191.37


PRINCIPAL DEBT SAVINGS FUND - RETAIL PLAN

Performance Scheme Scheme’s Benchmark Additional Benchmark(Crisil Short Term (Crisil 10 yearBond Fund Index) Gilt Index)


31-Dec-12 to 31-Dec-13 6.11 10610.65 8.27 10827.20 -0.68 9932.21

30-Dec-11 to 31-Dec-12 11.88 11188.30 9.15 10914.85 10.67 11066.79

31-Dec-10 to 30-Dec-11 -1.92 9808.30 7.84 10784.33 1.91 10191.37



Tax Rates for Mutual Fund Investors1

as per the Finance Act, 2013 – SNAPSHOT

Short Term Capital Long Term Capital Dividend Tax on Distributed TDS onGains Tax (STCG)2 Gains Tax (LTCG)2 Income Income Capital Gains7

Financial Year 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14

Resident Individual / 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilHUF / AOP / BOI

Resident 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilPartnership Firms

Domestic 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilCompanies

NRIs4 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

LTCG - Nil LTCG - Nil

FIIs 4 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - Nil 6 STCG - Nil 6

LTCG - Nil6 LTCG - Nil6

QFI 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

(Individual / HUF)4 LTCG - Nil LTCG - Nil

QFI 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

(Companies)4 LTCG - Nil LTCG - Nil

Short Term Long Term Dividend Tax on Distributed Tax on Distributed TDS onCapital Gains Tax2 Capital Gains Tax2 Income Income - Other than Income - Liquid / Capital Gains 7

Liquid / Money Money MarketMarket Schemes Schemes

2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14

Resident As per As per 10% 10% Exempt Exempt 13.519% 28.325% 27.038% 28.325% Nil NilIndividual / slab rates slab rates (20% with (20% with (12.50% plus (25% plus (25% plus (25% plus

HUF Indexation) Indexation) 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus3% education cess) 3% education cess - 3% education cess) 3% education cess)

from 1.6.2013to 31.3.2014)

14.1625%(12.50% plus

10% surcharge plus3% education cess -

from 1.4.2013to 31.5.2013)

AOP / BOI As per slab As per slab 10% 10% Exempt Exempt 32.445% 33.99% 32.445% 33.99% Nil Nilrates rates (20% with (20% with (30% plus (30% plus (30% plus (30% plus

Indexation) Indexation) 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus3% education cess) 3%education cess) 3% education cess) 3% education cess)

Domestic 30% 30% 10% 10% Exempt Exempt 32.445% 33.99% 32.445% 33.99% Nil NilCompanies / (20% with (20% with (30% plus (30% plus (30% plus (30% plus

Firms Indexation) Indexation) 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus3% education cess) 3% education cess) 3% education cess) 3% education cess)

NRIs 4 As per As per Listed Listed Exempt Exempt 13.519% 28.325% 27.038% 28.325% STCG - 30%2 STCG - 30%2

slab rates slab rates Units - 10% Units - 10% (12.50% plus (25% plus (25% plus (25% plus LTCG - 20%2 LTCG - 20%2

(20% with (20% with 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus with indexation with indexationIndexation) Indexation) 3% education cess) 3% education cess - 3% education cess) 3% education cess) for listed units for listed units

from 1.6.2013 10%2 10%2

Unlisted Unlisted to 31.3.2014)without indexation without indexation

Units - 10% Units - 10% 5.665% for unlisted units5 for unlisted units5

(without Indexation)5 (without Indexation)5 for IDFs(5% plus


from 1.6.2013to 31.3.2014)

14.1625%(12.50% plus


from 1.4.2013to 31.5.2013)

EQUITY ORIENTED FUNDS (SUBJECT TO STT3)

OTHER THAN EQUITY ORIENTED FUNDS (including Infrastructure Debt Funds8)

(Contd. on next page)




OTHER THAN EQUITY ORIENTED FUNDS (including Infrastructure Debt Funds8) [Contd.]Short Term Long Term Dividend Tax on Distributed Tax on Distributed TDS on

Capital Gains Tax2 Capital Gains Tax2 Income Income - Other than Income - Liquid / Capital Gains 7

Liquid / Money Money MarketMarket Schemes Schemes

2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14

FIIs4 30% 30% 10% 10% Exempt Exempt 32.445% 33.99% 32.445% 33.99% STCG - Nil6 STCG - Nil6

without Indexation without Indexation (30% plus (30% plus (30% plus (30% plus LTCG - Nil6 LTCG - Nil65% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus3% education cess) 3% education cess) 3% education cess) 3% education cess)

5.665% forIDFs

(5% plus10% surcharge plus3% education cess -

from 1.6.2013to 31.3.2014)

QFI As per As per Listed Listed Exempt Exempt 13.519% 28.325% 27.038% 28.325% STCG - 30%2 STCG - 30%2

(Individual/ slab rates slab rates Units - 10% Units - 10% (12.50% plus (25% plus (25% plus (25% plus LTCG - 20%2 LTCG - 20%2

HUF)4 (20% with (20% with 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus with indexation with indexation

Indexation) Indexation) 3% education cess) 3% education cess - 3% education cess) 3% education cess) for listed units for listed unitsfrom 1.6.2013 10%2 10%2

Unlisted Unlisted to 31.3.2014)without indexation without indexation

Units - 10% Units - 10% 5.665% for unlisted units5 for unlisted units5

(without Indexation)5 (without Indexation)5 for IDFs(5% plus


from 1.6.2013to 31.3.2014)

14.1625%(12.50% plus


from 1.4.2013to 31.5.2013)

QFI 40% 40% Listed Listed Exempt Exempt 32.445% 33.99% 32.445% 33.99% STCG - 40%2 STCG - 40%2

(Companies) 4 Units - 10% Units - 10% (30% plus (30% plus (30% plus (30% plus LTCG - 20%2 LTCG - 20%2

(20% with (20% with 5% surcharge plus 10% surcharge plus 5% surcharge plus 10% surcharge plus with indexation with indexation

Indexation) Indexation) 3% education cess) 3% education cess) 3% education cess) 3% education cess) for listed units for listed units

10%2 10%2

Unlisted Unlisted 5.665% for without indexation without indexation

Units - 10% Units - 10% IDFs for unlisted units5 for unlisted units5

(without Indexation)5 (without Indexation)5 (5% plus10% surcharge plus3% education cess -

from 1.6.2013to 31.3.2014)

1 Resident Individuals, HUF, BOI, AOP, Domestic companies, Non Resident Individuals ('NRIs'), Foreign Institutional Investor ('FIIs') and Qualified Foreign Investors ('QFI'). It is assumed that the unitsare held as capital assets by the investors.

2 Plus applicable surcharge [refer note 9], if any, and Education Cess at the rate of 2% on income-tax and surcharge and Secondary and Higher Education cess at the rate of 1% on income-tax andsurcharge.

3 Securities Transaction Tax ('STT') is applicable in respect of purchase/ sale of units of Equity-oriented funds ('EOFs') on a recognised stock exchange and redemption of EOFs by the mutual fund.Purchase/ sale/ redemption of units other than EOFs are not subject to STT.

4 Non-resident investors / FIIs / QFIs shall be entitled to be governed by provisions of the applicable Tax Treaty, which India has entered with the country of residence of the non-resident investor, if thatis more beneficial than the provisions of the Income-tax Act, 1961('the Act'), subject to certain conditions. As per section 90(4) of the Act, a non-resident shall not be entitled to claim treaty benefits,unless the non-resident obtains a Tax Residency Certificate ('TRC') from their home country, containing such particulars as may be prescribed. The Central Board of Direct Taxes has issued anotification dated 17 September, 2012, wherein certain particulars have been prescribed in this regard.

5 As per section 112 of the Act (as amended by the Finance Act, 2012), long-term capital gains in case of non-residents would be taxable @ 10% on transfer of capital assets, being unlisted securities,computed without giving effect to first & second proviso to section 48 i.e. without taking benefit of foreign currency fluctuation and indexation benefit.

6 Section 196D of the Act provides that no tax is required to be withheld for payment to a FII in respect of capital gains arising on transfer of units.

7 As per provisions of Section 206AA of the Act, if there is default on the part of a non-resident investor (entitled to receive redemption proceeds from the Mutual Fund on which tax is deductible underChapter XVII of the Act) to provide its Permanent Account Number ('PAN'), the tax shall be deducted at higher of the following rates: i) rates specified in relevant provisions of the Act; or ii) rate orrates in force; or iii) rate of 20%.

8 "Infrastructure debt fund" means a infrastructure debt fund as defined in clause 1 of the regulation 49L of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. As perclause 1 of regulation 49L , an 'infrastructure debt fund scheme' would mean, a scheme which invests primarily (minimum 90% of scheme assets) in debt securities or securitized debt instrumentof infrastructure companies or infrastructure capital companies or infrastructure projects or special purpose vehicles, etc or other permissible assets in accordance with these regulations or bank loansin respect of completed and revenue generating projects of infrastructure companies or projects or special purpose vehicles.

(Contd. on next page)




INCOME TAX RATES FOR INDIVIDUAL / HUF / AOP / BOI for AY 2014-15

Total Income Tax Rates (c)

Up to ` 200,000 (a)(b)(d) NIL

` 200,001 to ` 500,000 10%

` 500,001 to ` 1,000,000 20%

` 1,000,001 and above 30%

(a) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is ` 250,000.

(b) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is ` 5,00,000.

(c) Plus, surcharge on income-tax, as applicable and education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1%on income-tax.

(d) Rebate of upto ` 2,000 available for resident individuals whose total income does not exceed ` 5,00,000.

This information is being provided for basic guidance for investments in mutual funds and is based on provisions of the Income-tax Act, 1961 as proposed by the Finance Act,2013.The tax implication may vary for each assessee based on the details of his income. All rates and figures appearing are for illustrative purposes only. Tax benefits are subjectto change in tax laws. Contents of this note have been drawn for informative purpose only and the same should not be used or considered as an investment/tax advice. The AMC/Trustee/Sponsor accepts no liability whatsoever for any direct or consequential loss arising from any information provided in this note.

WEALTH TAX ON MF UNITS

Wealth Tax MF units are exempt

SECURITIES TRANSACTION TAX

Equity Oriented Fund

STT on sale of a unit of equity oriented mutual fund to the mutual fund has been reduced to 0.001% w.e.f. 1.06.2013. Prior to this date, STT is chargeable at 0.25%.

STT on purchase of units of an equity oriented mutual fund entered into in recognised stock exchange has been reduced to Nil w.e.f. 1.06.2013.Prior to this date, STT is chargeable at 0.1%.

Sale of a unit of an equity oriented mutual fund where transaction is entered into in recognized stock exchange and the contract for sale is settled by the actual delivery hasbeen reduced to 0.001% w.e.f. 1.06.2013. Prior to this date, STT is chargeable at 0.1%.

Other than Equity Oriented Fund: Purchase/ sale/ redemption of units other than equity-oriented units shall not be subject to STT.

Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought/sold

As per Section 94(7): The loss due to sale of Units in the schemes (where income distributed on MF units is tax free) will not be available for set-off to the extent of the tax freeincome distributed; if units are :- (A) Bought within three months prior to the record date fixed for income distribution; and (B) sold within nine months after the record date fixedfor income distribution.

As per Section 94(8): The loss due to sale of original Units in the schemes, where bonus Units are issued, will not be available for setoff; if original units are :- (A) Bought withinthree months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units

However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units held on the date of transfer of original units.

9 Surcharge applicable for FY 2013-14:

Type of Investor Surcharge rate as a % of Income-tax

If income is If income exceeds ` 1 crore If income exceedsless than ` 1 crores but less than ` 10 crores ` 10 crores

Individual (including non-resident individuals, QFI-individuals), Nil 10% 10%HUF, AOP & Partnership Firm

Domestic Company Nil 5% 10%

Foreign Company / FII / QFI (corporates) Nil 2% 5%

FII and QFI (non-corporates) Nil 10% 10%


� STANDARD DEVIATION - Is the average deviation from the mean returns. It is an indication of volatility i.e. deviation from mean

returns. Lower the better.

• For instance a scheme that has a consistent four-year return of 3% would have a mean or average of 3%. The standard deviation for

this scheme would then be zero because the scheme's return in any given year does not differ from its four-year mean of 3%.

• On the other hand, a scheme that in each of the last four years returned -5%, 17%, 2% and 30% will have a mean return of 11%. The

scheme will also exhibit a high standard deviation because each year the return of the scheme differs from the mean return. This

scheme is therefore riskier because it fluctuates widely between negative and positive returns within a short period.

Calculation = Square Root of Variance. Where Variance is the average of the squared deviations from mean returns.

� BETA - Can be interpreted as percentage change in price of a scheme for every one percentage change in the market benchmark. For

example if a scheme's beta is 1.1 and the market is expected to go up/down by 10% then the scheme will move up/down by 11%.

Calculation = Covariance of Market and Scheme's Returns Divided by Variance of the Market. Where Covariance is the Deviation of

Mean Returns of Market multiplied by Deviation of Mean Returns of the scheme.

� JENSEN'S ALPHA - Gives the average return of the portfolio over and above the risk free rate and market determined return. This is the

addition by the fund manager over and above the market return and hence higher the better.

Calculation = Portfolio Return - (Risk Free Rate of Return + beta [market return - Risk Free Rate of Return]).

� SHARPE - Gives the returns per unit of risk. i.e. for every 1 unit of risk what is the returns of the scheme. For this purpose risk is defined

as standard deviation of the scheme. Higher the Sharpe, the better.

It signifies that scheme with a higher sharpe ratio generates returns taking lesser risk. In other words, the scheme is less volatile and

yet generating good returns. Thus, given same returns, the scheme with a higher Sharpe ratio offers a better avenue for investing.

Calculation = Average Scheme Return - Risk Free Rate of Return :_ Standard Deviation of the Scheme.

� PORTFOLIO TURNOVER - Portfolio turnover is a measure of how actively a fund manager trades the portfolio of your scheme. Expressed

in percentage or number of times, the inverse of a scheme's turnover ratio is the average holding period for a security in that scheme.

If a scheme has a 20 per cent turnover ratio, it would suggest that on average that scheme will hold a security for five years before

selling it. A scheme with a 200 per cent turnover ratio will change its portfolio in six months or in other words, replace the entire

holdings in its portfolio with new stocks in six months.

Calculation = Lower of sales or purchases divided by average AUM for last rolling 12 months.

DISCLAIMER:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This factsheet is for informative purpose only and under no circumstances is to be used or considered as an investment advice. Terms of issue / load

structure / Scheme specific risk factors are set forth in the Scheme Information Document(SID). Copy of the same is available at all our Investor Service

Centres. Alternatively, Investor can download the SID from our website - www.principalindia.com or can call us at 1800 425 5600 to get a copy of the same.

Understanding Ratios & Risk Measures

++ ICRA has assigned credit risk rating of [ICRA]A1+mfs to Principal Cash Management Fund. The rating is the highest-credit-quality short-term rating assigned by ICRA to debt funds. It hasalso assigned the credit risk rating of [ICRA] AAAmfs to Principal Debt Opportunities Fund - Conservative Plan. The rating is the highest-credit-quality long term rating assigned by ICRA to debtfunds. Rating methodology used by ICRA is based on evaluating the inherent credit quality of the mutual funds portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA usesthe concept of “credit scores”, based on ICRA’s assessment of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores,ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund's publishedinvestment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to supportits published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score isbreached, ICRA gives a month's time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfoliocredit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in creditquality. The ratings should, however, not be construed as an indication of the prospective performance of the Mutual fund scheme or of volatility in its returns. ICRA ratings should not betreated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance which may lead to a revision in ratings. Source: ICRA Ltd.

Centres of Karvy Computershare Private Limited (R&T to Principal Mutual Fund) which have been identified as Official Point of Acceptance:

Agra: 1st Floor, Deepak Wasan Plaza, Behind Holiday Inn, Opp. Megdoot Furnitures, Sanjay Place, Agra-282 002 • Ahmedabad: 201/202 Shail, Opp. Madhusudan House,

Navrangpura, Ahmedabad-380 006 • Ajmer: S. No. 1 & 2, 2nd Floor, Ajmer Tower, Kutchery Road, Ajmer-305 001 • Aligarh: 1st Floor, Kumar Plaza, Aligarh-202 001

• Allahabad: RSA Towers, 2nd Floor, Above Sony TV Showroom, 57, S.P. Marg, Civil Lines, Allahabad-211 001 • Amritsar: 72-A, Taylor's Road, Opp. Aga Heritage Club,

Amritsar-143 001 • Anand: B-42 Vaibhav Commercial Center, Nr TVS Down Town Show Room, Grid Char Rasta, Anand-380 001 • Asansol: 114/71, G.T. Road, Near Sony

Centre, Bhanga Pachil, Asansol-713 303 • Aurangabad: Ramkunj Niwas, Railway Station Road, Near Osmanpura Circle, Aurangabad-431 005 • Bangalore: 59, Skanda

Puttanna Road, Basavanagudi, Bangalore-560 004 • Bankura: Ambika Market Complex, Gr. Floor, Nutanganj, Post & Dist Bankura, Bankura-722 101 • Bareilly: 1st Floor,

165, Civil Lines, Opp. Hotel Bareilly Palace, Near Railway Station, Bareilly-243 001 • Belgaum: CTS No. 3939/ A2 A1, Above Raymonds Show Room, Beside Harsha

Appliances, Club Road, Belgaum-590 001 • Bharuch: Shop No. 147-148, Aditya Complex, Near Kasak Circle, Bharuch-392 001 • Bhatinda: #2047-A 2Nd Floor, The Mall

Road, Above Max New York Life Insurance, New Delhi-151 001 • Bhavnagar: G-11 Giranjali Complex, Beside Bhavnagar Municipal Corporation & Collector Office,

Kalanala, Bhavnagar-364 001 • Bhilai: Shop No . 1, First Floor, Plot No.1, Commercial Complex, Nehru Nagar (East), Bhilai-490 020 • Bhopal: Kay Kay Business Centre,

133, Zone I, M.P. Nagar, Above City Bank, Bhopal-462 011 • Bhubaneshwar: A/181 , Back Side of Shivam Honda Show Room, Saheed Nagar, Bhubaneswar-751 007

• Bikaner: 70-71, 2nd Floor, Dr. Chahar Building, Panchsati Circle, Sadul Ganj, Bikaner-334 001 • Bokaro: B-1, 1st Floor, City Centre, Sector-4, Near Sona Chandi Jwellars,

Bokaro-827 004 • Burdwan: 63 G.T. Road, Halder Complex 1st Floor, Burdwan-713 101 • Calicut: 2nd Floor, Soubhagya Shopping Complex, Arayidathpalam,

Mavoor Road, Calicut-673 004 • Chandigarh: SCO 371-372, Above HDFC Bank, Sector 35-B, Chandigarh-160 036 • Chennai: F-11, Akshaya Plaza, 1st Floor, 108,

Adhithanar Salai, Egmore, Opp. Chief Metropolitan Court, Chennai-600 002 • Cochin: Ali Arcade, 1st Floor, Kizhavana Road, Panampilly Nagar, Near Atlantis Junction,

Ernakualm-682 036 • Coimbatore: 1057/1058 Jaya Enclave, 2nd Floor, Avinashi Road, Coimbatore-641 018 • Cuttack: P.O. - Buxi Bazar, Cuttack, Opp. Dargha Bazar,

Dargha Bazar, Cuttack-753 001 • Dehradun: Kaulagarh Road, Near Sirmaur Margabove, Reliance Webworld, Dehradun-248 001 • Dhanbad: 208 New Market, 2nd Floor,

Bank More, Dhanbad-826 001 • Durgapur: 1st Floor, Old Dutta Automobile Bldg., Nachan Road, Benachity, Durgapur-713 213 • Erode: No. 4, Veerappan Traders

Complex, KMY Salai, Sathy Road, Opp. Erode Bus Stand, Erode-638 003 • Faridabad: A-2B, 1st Floor, Nehru Groundnit, Faridabad-121 001 • Ghaziabad: 1st Floor, C-7,

Lohia Nagar, Ghaziabad-201 001 • Gorakhpur: Above V.I.P. Houseajdacent, A.D. Girls College, Bank Road, Gorakpur-273 001 • Gurgaon: Shop No.18, Gr. Floor,

Sector-14, Opp. AKD Tower, Near Huda Office, Gurgaon-122 001 • Guwahati: 54 Sagarika Bhawan, 2nd Floor, R.G. Barooah Road, AIDC, Near Baskin Robbins,

Guwahati-781 024 • Gwalior: 37/38, Lashkar, MIB Roadshinde Ki Chhawani, Near Nadi Gate Pul, Gwalior-474 001 • Hubli: 22 & 23, 3rd Floor, Eureka Junction, Travellers

Bunglow, Hubli-580 029 • Hyderabad: 8-2-596, Avenue 4, Karvy Plaza, Street No. 1, Banjara Hills, Hyderabad-500 034 • Indore: 213 -B City Center, M.G. Road,

Opp. High Court, Indore-452 001 • Jabalpur: Grover Chamber, 43 Naya Bazar Malviya Chowk, Opp. Shyam Market, Jabalpur-482 002 • Jaipur: S-16/A 3rd Floor, Land

Mark Building, Opp. Jai Club, Mahaver Marg C-Scheme, Jaipur-302 001 • Jalandhar: Arora Prime Tower, Lower Ground Floor, Office No. 3, Plot No. 28, Jalandhar-144 001

• Jalgaon: 113, Navi Peth, B/H Mahalaxmi Dairy, Jalgaon-425 001 • Jammu: 5 A/D Extension 2, Near Panama Chowk Petrol Pump, Panama Chowk, Jammu-180 012

• Jamnagar: 108 Madhav Palaza, Opp. SBI Bank, Near Lal Bunglow, Jamnagar-361 001 • Jamshedpur: Kanchan Tower, 3rd Floor, Main Road, Bistupur, Near Traffic

Signal, Jamshedpur-831 001 • Jodhpur: 203, Modi Arcade, Chopasni Road, Jodhpur-342 001 • Junagadh: 124-125 Punit Shopping Center, M.G. Road, Ranavav Chowk,

Junagadh-362 001 • Kanpur: 15/46, B, Gr. Floor, Opp. Muir Mills, Civil Lines, Kanpur-208 001 • Karnal: 18/369, Char Chaman, Kunjpura Road, Behind Miglani Hospital,

Karnal-132 001 • Kolhapur: 605/1/4, E Ward, Shahupuri 2nd Lane, Laxmi Niwas, Near Sultane Chambers, Kolhapur-416 001 • Kolkata: 166 A, Rashbihari Avenue, 2nd

Floor, Opp. Fortish Hospital, Kolkata-700 029 • Kota: 29,1st Floor, Near Lala Lajpat Rai Circle, Shopping Centre, Kota-324 007 • Kottayam: 1st Floor Csiascension Square,

Railway Station Road, Collectorate P. O., Kottayam-686 002 • Lucknow: 24, Prem Nagar, Ashok Marg, Lucknow-226 001 • Ludhiana: SCO-136, 1st Floor, Above Airtel

Showroom, Feroze Gandhi Market, Ludhiana-141 001 • Madurai: Rakesh Towers, 30-C, 1st Floor, Bye Pass Road, Opp. Nagappa Motors, Madurai-625 010

• Malda: Sahis Tuli, Under Ward No.6, No.1 Govt Colony, English Bazar Municipality, Malda-732 101 • Mangalore: Mahendra Arcade, Opp. Court Road, Karangal Padi,

Mangalore-575 003 • Meerut: 1st Floor, Medi Centre, Opp. ICICI Bank, Hapur Road, Near Bachha Park, Meerut-250 002 • Mehsana: Ul-47, Apollo Enclave, Opp.

Simandhar Temple, Modhera Cross Road, Mehsana-384 002 • Moradabad: Om Arcade, Parker Road, Above Syndicate Bank, Chowk Tari Khana, Moradabad-244 001

• Mumbai: 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind BSE Bldg., Fort, Mumbai-400 001 • Mumbai - Borivali: Gr. Floor, Himanshu Bldg., Sodawala

Lane, Lina Chandawarkar Road, Borivali, Mumbai-400 091 • Mumbai - Thane: 101, Yashwant Building, Ram Ganesh, Godkari Path, Ram Maruti Road, Naupada,

Thane-400 602 • Muzaffarpur: 1st Floor, Uma Market, Thana Gumtimoti Jheel, Muzaffarpur-842 001 • Mysore: L-350, Silver Tower, Ashoka Road, Opp. Clock Tower,

Mysore-570 001 • Nadiad: 104/105, Near Paras Cinema, City Point Nadiad, Nadiad-387 001 • Nagpur: Plot No. 2/1, House No 102/1, Mangaldeep Appartment, Mata

Mandir Road, Opp. Khandelwal Jewelers, Dharampeth, Nagpur-440 010 • Nasik: S-12,Suyojit Sankul, Sharanpur Road, Near Rajiv Gandhi Bhavan, Nasik-422 002

• Navsari: 1/1 Chinmay Aracade, Opp. Sattapir Road, Tower Road, Navsari-396 445 • New Delhi: 305, New Delhi House, 27, Barakhamba Road, New Delhi -110 001

• Noida: 307, Jaipuria Plaza, D-68-A, 2nd Floor, Opp. Delhi Public School, Sector 26, Noida-201 301 • Panipat: 1st Floor, Krishna Tower, Above Amertex, G.T. Road,

Panipat-132 103 • Panjim: City Business Centre, Coelho Pereira Building, Room No. 18,19 & 20, Dada Vaidya Road, Panjim-403 001 • Patiala: SCO-27 D, Chotti

Baradari, Near Car Bazaar, Patiala-147 001 • Patna: 3-A, 3rd Floor, Anand Tower, Exhibition Road, Opp. ICICI Bank, Patna-800 001 • Pondicherry: No. 7, Thiayagaraja

Street, Pondicherry-605 001 • Pune: Office # 16, Gr. Floor, Shrinath Plaza, Near Dyaneshwar Paduka Chowk , F. C. Road, Pune-411 005 • Raipur: 2 & 3, Lower Level,

Millenium Plaza, Room No. L 1, 2 & 3, Behind Indian Coffee House, Raipur-492 001 • Rajkot: 104, Siddhi Vinyak Complex, Opp. Ramkrishna Ashram, Dr. Yagnik Road,

Rajkot, Rajkot-360 001 • Ranchi: Room No. 307, 3rd Floor, Commerce Tower, Beside Mahabir Tower, Ranchi-834 001 • Rourkela: 1st Floor, Sandhu Complex,

Kachery Road, Uditnagar, Rourekla-769 012 • Salem: No. 40, 2nd Floor, Brindavan Road, Fairlands, Near Perumal Koil, Salem-636 016 • Shillong: Annex Mani Bhawan,

Lower Thana Road, Near R K M Lp School, Shillong-793 001 • Shimla: Triveni Building, By Pas Chowkkhallini, Shimla-171 002 • Siliguri: Nanak Complex, Sevoke Road,

Siliguri-734 001 • Surat: G-5, Empire State Buliding, Near Udhna Darwaja, Ring Road, Surat-395 002 • Tirunelveli: 55/18, Jeney Building, S.N. Road, Near Aravind Eye

Hospital, Tirunelveli-627 001 • Trichur: 2nd Floor, Brothers Complex, Naikkanal Junction, Shornur Road, Near Dhanalakshmi Bank H O, Thrissur-680 001 • Trichy: 60, Sri

Krishna Arcade, Thennur High Road, Trichy-620 017 • Trivandrum: 2nd Floor, Akshaya Tower, Sasthamangalam, Trivandrum-695 010 • Udaipur: 201-202, Madhav

Chambers, Opp. G P O., Chetak Circle, Udaipur-313 001 • Vadodara: SB-5, Mangaldeep Complex, Opp. Masonic Hall, Productivity Road, Alkapuri, Baroda-390 007

• Valsad: Shop No. 2 , Phiroza Corner, Opp. Next Show Room, Tithal Road, Valsad-396 001 • Vapi: Shop No. 12, Ground Floor, Sheetal Appatment, Near K.P. Tower,

Vapi-396 195 • Varanasi: D-64/132, 1st Floor, Anant Complex, Sigra, Varanashi-221 010 • Vellore: No. 1, M. N. R. Arcade, Officers Line, Krishna Nagar, Vellore-632 001

• Vijayawada: 39-10-7, Opp. Municipal Water Tank, Labbipet, Vijayawada-520 010 • Visakhapatnam: Door No. 47-14-5/1, Eswar Paradise, Dwarakanagar Main Road,

Visakhapatnam-530 016 • Warangal: 5-6-95, 1st Floor, Opp. B.Ed Collage, Lashkar Bazar, Chandra Complex, Hanmakonda, Warangal-506 001.

Name, Address and Website of Registrar:

Karvy Computershare Pvt. Ltd. (Unit: Principal Mutual Fund), 'Madhura Estates', Municipal No.1-9/13/C, Plot No.13 & 13-C, Survey No.74 & 75, Madhapur

Village, Ranga Reddy District, Hyderabad-500 081. • Tel.: (040) 2331 2454. • www.karvycomputershare.com

For any enquiries and / or queries, investors are advised to address a suitable communication to AMC at:

Offices of AMC Identified as Official Point of Acceptance (OPA) / Investor Service Centres (ISC)

Principal Pnb Asset Management Company Private Limited - OPA & ISC:

• Mumbai: Exchange Plaza, ‘B’ wing, Ground Floor, NSE Building, Bandra Kurla Complex, Bandra (East), Mumbai-400 051

Principal Pnb Asset Management Company Private Limited - ISC:

• Ahmedabad: 101, Megha House, Opp. Kotak Mahindra Bank, Mithakhali, Navrangpura, Ahmedabad-380 009

• Bengaluru: Salarpuria Landmark, 2nd Floor, Unit No. 2002, 100 Feet Road, HAL II Stage, Bengaluru-560 038

• Chandigarh: SCO No. 145-146, 1st Floor, Sector 9-C, Chandigarh-160 009

• Chennai: Nirupama & Neelima Building, New Unit No.55, Vijaya Raghava Road, T. Nagar, Chennai-600 017

• Cochin: 2nd Flr., Mayur Business Center, Pullepady Junction, Chittor Road, Cochin-682 035

• Hyderabad: ANR Center, Unit No. 201, 1st Floor, Road No.1, Banjara Hills, Hyderabad - 500 034

• Indore: 222, 2nd Floor, City Center, 570, M.G. Road, Indore-452 001

• Jaipur: 61-A, Vasanti, Sardar Patel Marg, C-Scheme, Jaipur-302 001

• Kanpur: 118-119, Kan Chambers, Near Stock Exchange Bldg., 14/113 Civil Lines, Kanpur-208 001

• Kolkata: Bachhawat House, Premises No.2, Dr. Martin Luther King Sarani, (Formerly Upper Wood Street), Kolkata-700 016

• Lucknow: Rohtas Trident, 1st Floor, 10, Rana Pratap Marg, Lucknow-226 001

• New Delhi: Unit No. 001 & 002, Gr. Floor, DLF Capitol Point, Baba Kharag Singh Marg, New Delhi-110 001

• Pune: Unit No: 103 & 104, 1st Floor, Rainbow Plaza, Opp. Modern Highschool, Jangali Maharaj Road, Shivaji Nagar, Pune - 411 005

• Surat: 206 Jolly Plaza, Athwagate, Surat-395 001

• Vadodara: 103, Paradise Complex, Sayajigunj, Vadodara-390 005.

principal mutual fund march 2014

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