Principal Mutual Fund

Details as on August 31st, 2009

Key Fund Facts
Scheme Features

Inception 11-Nov-05 The Scheme

Performance History (Yrs) 3.8 To provide capital appreciation and / or
Benchmark Index BSE 100

dividend distribution by predominantly

investing in companies having large

Lock in Period
N.A.

market capitalization. For the purpose of

Fund Manager
Pramod Gupta

this Fund, Large Cap companies are

Total Investment Experience 10 years defined as those having market
Managing the Current Fund Since October 2007 capitalization greater than Rs. 750
crore
as on the date of investment (or any
Minimum Application Amt such amount as may be specified by
New Investor Rs. 5000

India Index Services & Products Ltd

(IISL) from time to time) being the upper

Existing Investor
Rs. 500

limit of market capitalization as a criteria

for inclusion of a company in CNX
Midcap 200 Index. However, should IISL
If redeemed on or before 1 year from come out with a definition of �Large Cap

Agile Portfolio
Management
Only True
Large Cap
Stocks
Portfolio
No
Surprises
Portfolio
Exit Load

allotment date -1%

companies�, the same will be utilized.

Suitable For

Expense Ratio
2.31%
Suitable for investors who seek

Calculated as year to date ratio to Average AUM

attractive investment opportunity within

the large cap space

Reasons for Investing in the Fund

Invested Scheme BSE 100

.
No surprises portfolio; predominantly investing in true large cap 1 Year Back 1.17
Lakh 1.08 Lakh
stocks
3 Year Back 1.51 Lakh 1.39 Lakh
At Inception 2.19 Lakh 1.84 Lakh

.
Investment in market leaders with demonstrated ability to perform
across market cycles
Performance as on 31st August, 2009

Period Date Scheme^ BSE 100

.
Large cap companies add stability to your portfolio and in a way act
as hedge against market volatility
6 months 27-Feb-09 86.91% 82.13%
1 Year 29-Aug-08 17.37% 7.88%

.
Focus on large cap stocks ensures a highly liquid portfolio in turn 3 Year 31-Aug-
06 14.68% 11.49%
enabling active management of stocks exposures Since Inception 11-Nov-05 22.98%
17.62%
Past performance may or may not be sustained in future. Note: Returns less
than 1 year are calculated on absolute basis & more than 1 year on
compounded annualized basis. ^Growth Option

Rolling Returns 1 Year Rolling (%)$$

Statistical Measures

Ratio
Scheme BSE 100

Std Deviation^ (Annualised) 37.20 37.48

Beta^ 0.98 NA
Sharpe^ (Annualised) 0.48 0.37
Portfolio Turnover Ratio*** 1.90 NA

Note: ^The above measures have been calculated by taking rolling

returns for a 3 years period with 3.40% risk free rate of returns.

***Portfolio Turnover Ratio is calculated as lower of sales or purchase

divided by average AUM for last rolling 12 months

Principal Large Cap BSE100

Past performance may or may not be sustained in future

Dividend Track Record

Calendar Year Returns $$

Record Date Dividend (Rs/Unit)* Cum Dividend NAV Year Scheme^ BSE 100

28-Jul-09 2.00 17.67 2009 (YTD) 80.13 64.90

05-Feb-08 2.00 23.56 2008 -58.83 -55.28
15-May-07 1.50 17.76 2007 72.79 59.74

*On face value of Rs 10. 2006 48.13 39.83

Past performance may or may not be sustained in future. Past performance may or
may not be sustained in future. ^ Growth Option

Wealth Creation through Regular Investing Systematic Investment Planning (SIP)

SIP Returns
Value of Investment (Rs)

SIP Period & Investment Amount (Rs. 1000 pm)

Scheme BSE 100 Scheme BSE 100

1 Year -Rs.12000 109.30% 90.11% 18,131 17,139

3 Years -Rs.36000 15.60% 11.19% 45,290 42,520
Since inception -Rs.45000 15.82% 11.88% 60,284 56,138

Note: SIP returns are worked out assuming investment of Rs.1000/-every month at
NAV per unit of the scheme as on first working day for the
respective time periods. Loads have not been taken into account. Returns have been
calculated for the Growth option. Returns are calculated on
compounded annualized basis using XIRR method.
Past performance may or may not be sustained in the future.

Present Worth of Rs 1 Lakh

Concentrated
Stock
Exposures
-90
-60
-30
0
30
60
Sep-08
Oct-08
Nov-08
Dec-08
Dec-08
Jan-09
Feb-09
Mar-09
May-09
Jun-09
Jun-09

Jul-09Aug-09

Know Your Principal Fund -One stop Information on your Fund

Page 1
Principal Mutual Fund

Details as on August 31st, 2009

Key Portfolio Details* Asset Allocation*
428.25
21.85
16.17
37.60%
43
What s In** (% of NAV) What s Out** ( % of NAV )
Top 10 Exposures* ( % of NAV)
Fund Size (Rs Crores)
Top Sectors*( % of NAV )
NAV As On 31st August 09 (Rs Per Unit)
-Growth Option
-Dividend Option
% of Top 10 Holdings
Number of Holdings
0%
4%
8%
12%
16%
20%
BanksPetroleumProductsSoftwarePharmaConsumerNonDurablesAutoIndustrialCapitalGoodsF
inanceNon
FerrousMetalsOil
`
4.46%
4.07%
3.88%
3.71%
3.36%
3.31%
3.01%
3.00%
2.95%
5.85%
2.00% 3.00% 4.00% 5.00% 6.00%
Reliance Industries Ltd
Oracle Fin Serv Soft Ltd
State Bank of India
ONGC Ltd
IOC Ltd
Maruti Suzuki India Ltd
HPCL
Bajaj Holding and Investments
Cipla Ltd
Allahabad Bank
2.29%
1.37%
0.41%
3.00%
2.42%
0.00% 0.90% 1.80% 2.70% 3.60%
Cipla Ltd
National Aluminium Co Ltd
Castrol (india) Ltd
Crompton Grev Ltd
Adani Power Ltd
-2.85%
-2.82%
-2.03%
-3.60% -2.70% -1.80% -0.90% 0.00%
Bajaj Auto Ltd
Sesa Goa Ltd
Gujarat Ambuja Cement Ltd
Investment Strategy
.
The scheme predominantly invests in stocks having a market
capitalization equal to or greater than Rs.3500 Crores, representing
the truly large cap stocks.
.
A small part of the portfolio could be invested in stocks having a lower
market capitalization, but not lower than Rs.2000 Crores
.
The scheme has a strategy of having focused investments in a limited
number of stocks which in turn helps the fund�s performance and agile
portfolio management
.
The scheme is managed on a bottom up stock selection approach
without any style or sector bias with the objective of delivering superior
risk adjusted returns over the medium to longer term investment
horizon
.
The scheme seeks to invest in stocks which are leaders in their
respective sectors and are available at reasonable valuations
.
The scheme seeks to generate alpha by a combination of superior
stock selection and risk management efforts
Mid & Small Cap,
2%
Cash, 8%
Large Cap, 90%
*All Portfolio details are as at the end of the report month.
$ CRISIL CPR -The composite performance of Principal Large Cap Fund in the Large
Cap Oriented Equity Schemes category (26 schemes) represent "Good Performance
in the category" and rank within 11th to 30th percentile of the schemes ranked in
the category. Disclaimer: CRISIL CPR is the relative performance ranking of the
mutual fund
schemes within a peer group. The basic criteria used in computing the CRISIL
Composite Performance Rank is based on NAV history for 2-year period for Large Cap

Oriented Equity Schemes category. The ranking is for the quarter ended June 30,
2009 and is assigned to the scheme on the basis of weighted average score
considering
following broad parameters such as Superior Return Score, Portfolio Concentration
Risk and Liquidity. The methodology does not take into account the entry and exit
loads
levied by the scheme. The CRISIL CPR is no indication of the performance that can
be expected from the scheme in future. A detailed methodology of the CRISIL CPR is

available at www.crisil.com. Rankings and Award Source: CRISIL FundServices,

CRISIL Ltd.
$$ Returns less than 1 year are calculated on absolute basis & more than 1 year on
compounded annualized basis.
Risk Factors: Mutual funds and securities investments are subject to market risks
and there can be no assurance and no guarantee that the objectives of scheme(s) of

Principal Mutual Fund can be achieved. As with any investment in securities, the
NAV of the units issued under the scheme(s) can go up or down, depending upon the
factors and forces affecting the capital markets. Past performance of the Sponsor/
AMC/ Principal Mutual Fund/ Punjab National Bank/ Vijaya Bank does not indicate or

guarantee the future performance of the Schemes of Principal Mutual Fund.

Statutory Details: Principal Mutual Fund has been constituted as a trust with
Principal Financial
Group (Mauritius) Limited, Punjab National Bank and Vijaya Bank as the co-
settlors. Sponsor: Principal Financial Services Inc., USA [acting through its
wholly owned
subsidiary Principal Financial Group (Mauritius) Limited] Trustee: Principal
Trustee Company Private Limited. Investment Manager: Principal Pnb Asset
Management
Company Private Limited (AMC). Investment Objective: The primary objective of the
scheme is to provide capital appreciation and / or dividend distribution by
predominantly investing in companies having large market capitalization. For the
purpose of this Fund, Large Cap companies are defined as those having market
capitalization greater than Rs. 750 crore as on the date of investment (or any
such amount as may be specified by India Index Services & Products Ltd (IISL) from
time to
time) being the upper limit of market capitalization as a criteria for inclusion
of a company in CNX Midcap 200 Index. However, should IISL come out with a
definition of
�Large Cap companies�, the same will be utilized. Terms of issue, sale &
repurchase of units: Sale and repurchase at NAV based prices on all business days.
General
Services: NAV will be declared on all business days. Principal Large Cap Fund is
only the name of the Scheme(s) and does not in any manner indicate either the
quality of
the Scheme or the future prospects or returns. The Sponsor and any of its
associates including the co -settlors is not responsible or liable for any loss
resulting from the
operations of the Mutual Fund beyond the contribution of an amount of Rs. 25 Lakhs
towards setting up Principal Mutual Fund. Investors in the scheme(s) are not being

offered a guaranteed or assured rate of return or monthly or regular/periodical

income distribution, and the actual returns and/or periodical income distribution
of an investor
will be based on the distributable surplus. For any enquiries and / or queries,
investors are advised to address a suitable communication to AMC at: Tel No. 1800
22 5600,
Email: customer@principalindia.com, Website: www.principalndia.com
For scheme specific risk factors, terms of issue, etc. investors are urged to read
the Scheme Information Document (SID) carefully and consult with their
legal/tax/investment advisor before they invest in the Scheme. Copy of SID & Key
Information Memorandum (KIM) can be obtained at all Investor Service Centers
and website www.principalindia.com. Alternatively investors can call at 1800225600
to get a copy of the same.

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