Principal Smart Equity Fund

NFO Opens – November 26, 2010 and closes on December 10, 2010

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•Investment Objective - The primary objective of the scheme is to seek to generate long term capital appreciation with relatively lower volatility through systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. The Scheme will decide on allocation of funds into equity assets based on equity market Price Earning Ratio (PE Ratio) levels. When the markets become expensive in terms of ‘Price to Earnings’ Ratio’; the Scheme will reduce its allocation to equities and move assets into debt and/or money market instruments and vice versa.

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•Benchmark – Crisil Balanced Fund Index

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•Fund Manager – Rajat Jain

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Asset Allocation – 0% to 100% Equity or 0% to 100% Debt/Money Market – Based on 4Quarter Trailing Nifty PE Bands

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•Equity Investment Universe – Large Cap Stocks only (Stocks within the market cap range of BSE 100 Index)

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•Exit Load – From the date of allotment if redeemed any time –

Upto 1 Year – 2.00%

Upto 2 Years – 1.00%

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