nd thNFO: 22 April – 6 May, 2019

Presenting

PRINCIPAL SMALL CAP FUND(An Open Ended Equity Scheme predominantly investing in small cap stocks)

This product is suitable for investors who are seeking~• Long term Capital Growth.• Predominantly investment in equity and equity related instruments of small cap

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

Why Small Cap?

4

5

6

7

8

More sectoral opportunities in Small Caps

9

10

77%

11

Rebased the values of Nifty 50 TRI, Nifty Midcap 100 TRI and Nifty Smallcap 100 TRI to 10 as on 31st Jan 2013.

Rebased the values of Nifty 50 TRI, Nifty Midcap 100 TRI and Nifty Smallcap 100 TRI to 10 as on 28th Aug 2013.

16.62

22.37

25.46

10

12

14

16

18

20

22

24

26

12

Rebased the values of Nifty 50 TRI, Nifty Midcap 100 TRI and Nifty Smallcap 100 TRI to 10 as on 6th Aug 2015.

Rebased the values of Nifty 50 TRI, Nifty Midcap 100 TRI and Nifty Smallcap 100 TRI to 10 as on 25th Feb 2016.

13

Rebased the values of Nifty 50 TRI, Nifty Midcap 100 TRI and Nifty Smallcap 100 TRI to 10 as on 28th Aug 2018.

The market movement depends on various factors and hence it cannot be assumed that the correction is over. Investors are requested to note that small cap performance is cyclical in nature. The above simulation is for illustration purpose only and should not be construed as a promise on returns and safeguard of capital. This should not be construed as a guarantee or forecasting of any returns.

14

% R

etur

ns

2019What’s Next

The market movement depends on various factors and hence it cannot be assumed that the correction is over. Investors are requested to note that small cap performance is cyclical in nature. The above simulation is for illustration purpose only and should not be construed as a promise on returns and safeguard of capital. This should not be construed as a guarantee or forecasting of any returns.

15

Government finances is expected to improve with GST stabilization

Consumption continues to remain strong driver of economy

Opportunity for investing in Small Caps

16

Principal Small Cap Fund

17

In-House Research Capabilities

18

19

Tactical allocation to Large and Mid Caps for growth, liquidity and lower volatility

20

Superior stock picking in past…

21

Source: CapitaLine; Internal AnalysisPast performance may or may not be sustained in future. Stocks referred above are for illustration purpose only and for explaining the concept. This should not to be construed as recommendation by Principal AMC. They represent small cap stocks in various schemes of Principal Mutual Fund. The schemes of Principal Mutual Fund may or may not hold these stock currently/in future. The companies may have moved from small cap space due to change in their market cap over a period of time.

22

Facilities in Principal Small Cap Fund

23

In case of falling markets, STEP will endeavor to possibly capture lower ends of markets as per its very nature.

Predicting bottom of any equity is impossible. However, with STEP feature, aninvestor can rely on systematic investment.

24

What is STEP Facility?

Introduction to Smart Trigger Enabled Plan (STEP)

This facility is available exclusively during NFO period

STEP is a that lets you stagger your investments

facility

How STEP works?

25

How STEP works?

26

Specify the target rate of return to facilitate auto trigger

Investment appreciates to reach the target rate of return

Principal Fund of your choice

Mr. PVK Mohan joined Principal Asset Management Pvt. Ltd. (formerly known as Principal PNB Asset Management Company Pvt. Ltd.) as Head Equity in June 2010. He has spent over 25 years in equity research and fund management. Previously, he was associated with ICICI Prudential Mutual Fund, DSP BlackRock Mutual Fund and IL&FS Mutual Fund. He is a B.Tech and holds a PGDM.

Mr. Siddarth Mohta has been part of Principal Asset Management Pvt. Ltd. (formerly known as Principal PNB Asset Management Company Pvt. Ltd.) since 2009. He has over 14 years of experience in Finance and Stock Markets. Prior to joining Principal, he worked as an Analyst in Adventity Global Services, ICRA Management Consulting Services and Polaris Software Ltd. He is a B.Com and a Post Graduate Diploma in Management in Finance and Certified Financial Risk Management.

27

Ÿ New Investor – Rs. 5,000/- for both Dividend and Growth Option and any amount thereafter under each Plan/Option.

Ÿ STEP – Rs. 25,000/-Ÿ Systematic Investment Plan: Minimum Twelve

installments of Rs. 500/- each.Ÿ Systematic Transfer Plan: Minimum Six

installments of Rs. 1,000/- each.Ÿ Regular Withdrawal Plan: Minimum Six

installments of Rs. 500/- each.

Exit Load

Ÿ If redeemed/ switched on or before 1 year from the date of allotment: - Nil for redemption/ switch out of units up to 25% of the units allotted (the limit)

Ÿ 1% on redemption in excess of 25% of the limit stated above - Redemption of units would be done on First in First out Basis (FIFO)

Ÿ Nil thereafter

DISCLAIMER: The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of the scheme. The views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. This material should not be relied upon by you in evaluating the merits of investing in any securities or products. Diversification does not guarantee investment returns and does not eliminate the risk of loss. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Past performance may or may not be sustained in future. The views and strategies described may not be suitable for all investors. Furthermore, whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will be met. Investors are advised to consult their Investment advisors for determining their risk appetite and Tax Advisor before taking any investment decision.