Know Your Principal Fund - Principal Large Cap Fund[1]

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-Aug06 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 cosettlors. 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: [email protected], 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. Know Your Principal Fund -One stop Information on your Fund Page 2