KEY INFORMATION MEMORANDUM

&
APPLICATION FORM

Principal SMART Equity Fund

(An open ended equity scheme)

[Offer of Units of ` 10/- each for cash during the New Fund Offer period and
Continous offer for Units at NAV based prices]

New Fund Offer Opens on : November 26, 2010

New Fund Offer Closes on : December 10, 2010

Scheme re-opens for continuous sale and repurchase:

within 5 Business Days from the Date of Allotment

Mutual Fund Principal Mutual Fund

Asset Management Company
Maker Bhavan - II, 1st Floor, 18, Sir Vithaldas Thackersey Marg,
New Marine Lines, Mumbai- 400 020
Principal Pnb Asset Management Company Private Limited
Exchange Plaza, 'B' Wing, 2nd Floor, NSE Building,
Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.+

This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to
know before investing. For further details of the scheme/Mutual Fund, due diligence certificate by
the AMC, Key Personnel, investors' rights & services, risk factors, penalties & pending litigations
etc. investors should, before investment, refer to the Scheme Information Document and
Statement of Additional Information available free of cost at any of the Investor Service Centres
or distributors or from the website www.principalindia.com
The aforesaid SID & SAI are to be read with the addendums, if any issued by the Fund from time
to time. The Scheme particulars have been prepared in accordance with Securities and Exchange
Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities
and Exchange Board of India (SEBI). The units being offered for public subscription have
not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of
this KIM.

+ (Not an Official Point of Acceptance)

 Investment Objective
Asset Allocation Pattern
of the scheme
Risk Profile of the Scheme
Plans & Options
Applicable NAV
(After the Scheme opens for
repurchase and sale)
Minimum Application
Amount / Number of Units
Despatch of Repurchase
(Redemption) Request
Benchmark Index
Dividend Policy
Name of the Fund Manager
Name of the Trustee Company
Performance of the Scheme:
2
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.
Under normal circumstances, the asset allocation of the Scheme will be as under:
Type of Instrument(s) (% of Net Assets) Risk Profile
Minimum Maximum
Equity & Equity Related Instruments of Large Cap Companies 0 100 Medium to High
Debt or Money Market Securities and/or units of money market/ 0 100 Low to Medium
liquid schemes of Principal Mutual Fund
Investment in derivatives shall be upto 50% of the net assets of the Scheme. Deployment upto 50% of its total net assets of
the Scheme in Stock Lending, subject to the SEBI regulations.
The Scheme has no intention to invest in Securitised Debt.
Large Cap Stocks are defined as stocks with market cap equal to or above the market cap of the lowest market cap stock
of the BSE 100 Index and which may or may not be a constituent of the BSE 100 Index at the time of investment. The
universe may also include Initial Public Offerings whose market capitalization would be as per the above-mentioned
criteria. This large cap cutoff will be so determined taking into account the full market cap range of the BSE 100 index at
the end of every calendar quarter. Such market cap range once determined at quarter-end will apply to all investment
decisions made during the following quarter. The market cap criteria will apply only at the time of making investment
decision. If a stock so qualifies for investment based on above market cap criteria at the time of investment; the fund may
continue to hold the stock irrespective of market cap movement of the stock subsequent to investment in the stock.
The lower end of the full market cap of BSE 100 Index as on September 30, 2010 was ` 3,569 crore.
Mutual Fund units involve investment risks including the possible loss of principal. Please read the SID carefully for details
on risk factors before investment. Scheme specific Risk Factors are summarized below:
A portfolio managed on PE ratios may not outperform a fully invested portfolio even at the peak of a bull market.
The Scheme has two options: Growth and Dividend Option.
Further, the Dividend Option will have the facility of Payout, Re-investment & Sweep.
Cut Off Time For Subscriptions / Switch-in : In respect of valid applications received upto 3.00 p.m. by the fund
along with a local cheque or a demand draft payable at par at the Official Point of Acceptance of Transactions
where it is received, the closing NAV of the day on which the application has been received shall be applicable.
In respect of valid applications received after 3.00 p.m by the Fund along with a local cheque or a demand draft payable at
par at the Official Point of Acceptance where it is received, the closing NAV of the next business day shall be applicable
In respect of the valid applications received with an outstation demand draft payable on par at the Official Points of
Acceptance of Transactions where the application is received, the closing NAV of day on which the cheque or demand draft
is credited shall be applicable.
Cut Off Time For Redemptions / Switch-out : In respect of valid applications received upto 3.00 p.m. at the Official Point
of Acceptance, same day's closing NAV shall be applicable.
In respect of valid applications received after 3.00 p.m. at the Official Point of Acceptance, the closing NAV of the next
business day shall be applicable.
Cut off time as mentioned above shall be reckoned at the Official Point of Acceptance as disclosed in this Scheme Information
Document and the web-site, www.principalindia.com
Purchase Additional Purchase Repurchase
` 5,000 and any amount in multiple of ` 500 and any amount in multiple of ` 500 or 50 units.
` 1/- thereafter under each option. ` 1/- thereafter under each option.
Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP) :
Minimum 6 installments of ` 500 each (STP / SWP shall be available during continuous offer on an ongoing basis)
Within 10 business days of the receipt of the redemption request at the Official Points of Acceptance of
Principal Mutual Fund.
The Scheme's performance will be benchmarked against Crisil Balanced Fund Index.
The Fund reserves the right to change the said benchmark and / or adopt one / more other benchmarks to compare
the performance of the Scheme.
Under Dividend Option, dividend will be declared subject to availability of distributable surplus and at discretion of AMC/
Trustee. The undistributed portion of the income will remain in the Option and be reflected in the NAV, on an ongoing basis. The
Trustee's decision with regard to availability and adequacy, rate, timing and frequency of distribution of dividend shall be final.
Mr. Rajat Jain
Principal Trustee Company Private Limited
This Scheme does not have any performance track record.
 Expenses of the Scheme New Fund Offer Period and Continuous Offer
(i) Load Structure : Entry Load : Not Applicable
Exit Load : From the date of allotment if redeemed any time-
• Upto 1 Year - 2.00% • Upto 2 Years - 1.00% • After 2 Years - Nil
Load on switches will be same as exit load applicable for the respective Scheme.

(ii) Recurring Expenses • First ` 100 crores - 2.50 • Next ` 300 crores - 2.25 • Next ` 300 crores - 2.00 • Balance - 1.75.
(Percentage of Average (Note: A maximum of 2.25% of average daily net assets will be charged as recurring expenses per annum when the
Daily Net Assets including asset allocation to debt/money market instruments exceeds 65%. This will be done observing the Debt/Money Market
Management Fees): component on each Friday or last working day of the week and accordingly the expenses will be charged next week.)

Actual Expenses for the previous financial year: Not Applicable being a new Scheme.

Waiver of Load for Not applicable.

Direct Applications Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009 no entry load shall be charged for
all Mutual Fund Scheme(s). Therefore, the procedure for waiver of load for direct applications is no longer applicable.

TAX & LEGAL & GENERAL INFORMATION
TAXATION ON INVESTING IN MUTUAL FUNDS
The following tax implications are provided for general information purposes based on the law prevalent as
on the date of this document. Such implications would have to be determined taking into account the
specific facts of each individual case. Further, in the event of amendments to legislation pertaining to
taxation from time to time, the nature and / or quantum of such benefits/ implications is subject to
change.
Accordingly, it is recommended that each Unit holder appropriately consult his / her tax consultant with
respect to the specific tax implications arising out of their participation in the Scheme.
I. TO THE MUTUAL FUND:
Income in the hands of the Mutual Fund
The entire income of the Mutual Fund registered under Securities and Exchange Board of India Act, 1992 or
any regulations made thereunder is exempt from income-tax in accordance with the provisions of section
10(23D) of the Income-tax Act, 1961 ("the Act").
The income received by such Mutual Fund is not liable for deduction of income tax at source as per the
provisions of Section 196(iv) of the Act. Where the Fund receives any income from investments made in
overseas jurisdiction, the same may be subject to withholding in the relevant jurisdiction from which the
income is received. As the income of the fund is exempt from tax in India, credit/ refund in respect of such
foreign taxes may not be available in India.
Tax on distribution of income by the Mutual Fund to the Unit holders:
Under section 115R of the Act, income distribution, if any, made by the Mutual Fund to the unit holders will
attract distribution tax at the following rates:
• In case of Money Market Mutual Fund or Liquid Fund
@ 25% plus surcharge on such income-tax @ 7.5% and education cess and secondary and higher education
cess @ 3% on the amount of tax and surcharge.
• In case of Other than Equity Oriented Fund, not being a Money Market Mutual Fund or a Liquid Fund
– @ 12.5% plus surcharge on such income-tax @ 7.5% and education cess and secondary and higher
education cess @ 3% on the amount of tax and surcharge, in case income is distributed to individuals
and HUFs; and
– @ 20% plus surcharge on such income-tax @ 7.5% and education cess and secondary and higher
education cess @ 3% on the amount of tax and surcharge, in case of income distributed to
persons other than individuals and HUFs.
Proviso (b) to Section 115R(2) of the Act provides exemption to equity oriented mutual funds from paying
distribution tax on income distributed.
Further, in case of distribution of income already paid by the Scheme, the Trustee / AMC reserves the right
to recover the additional income-tax on distribution of income so paid from the unit holders of respective
Plan/option.
The expression "money market mutual fund" has been defined under Explanation (d) to Section 115T which
means a scheme of a mutual fund which has been set up with the objective of investing exclusively in
money market instruments as defined in sub-clause (p) of clause (2) of the Securities and Exchange Board
of India (Mutual Funds) Regulations,1996.
The expression" liquid fund" has been defined under Explanation (e) to Section 115T which means a scheme
or plan of a mutual fund which is classified by the Securities and Exchange Board of India as a liquid fund in
accordance with the guidelines issued by it in this behalf under the Securities and Exchange Board of India
Act, 1992 or regulations made thereunder.
Classification of the fund as 'equity oriented fund' or other than 'equity oriented fund' for the purposes
of the Act
The expression "equity oriented fund" has been defined under Explanation (b) to Section 115T of the Act to
include a fund where the investible funds are invested by way of equity shares in domestic companies to
the extent of more than sixty-five per cent of the total proceeds of such fund. Further, as per the proviso
to the Explanation (b) to section 115T, the percentage of equity shareholding of the fund shall be computed
with reference to the annual average of the monthly averages of the opening and closing figures.
II. TO THE UNIT HOLDERS:
Deduction from total income
Under section 80C of the Act, an assessee, being an individual or HUF, is eligible to claim a deduction upto an
aggregate of ` 1 lacs on account of sums paid as subscription to units of an Equity Linked Savings Scheme.
The expression "Equity Linked Savings Scheme " refers to Equity Linked Savings Scheme, 2005 as notified by
the Central Board of Direct Taxes, Ministry of Finance vide notification dated November 3, 2005 as amended
vide notification dated December 13, 2005.
Securities Transaction Tax
Under Chapter VII of Finance (No. 2) Act, 2004 the unit holder is liable to pay Securities Transaction Tax ('STT')
in respect of "taxable securities transaction" at the applicable rates. Taxable securities transactions include
purchase or sale of units of an equity oriented fund, entered into on the stock exchange or sale of units of
an equity oriented fund to the mutual fund.
The purchaser and seller of units of an equity oriented fund are liable to pay STT @ 0.125% each where the
purchase and sale is entered into on a recognized stock exchange and the contract for the purchase and
sale of such units is settled by actual delivery or transfer of such units.
Further, the seller of units is also liable to pay STT @ 0.025% in case of sale of units of an equity oriented
fund where the transaction of such sale is entered into on a recognized stock exchange and the contract for
the sale of such units is settled otherwise than by the actual delivery or transfer of such units.
At the time of sale of units of equity oriented fund to the mutual fund, the seller is required to pay an
STT @ 0.25%.
The securities transaction tax paid by the assessee during the year in respect of taxable securities transactions
entered in the course of business shall be allowed as deduction under section 36 of the Act subject to the
condition that such income from taxable securities transactions is included under the head 'profits and
gains of business or profession'.
Incomes from Units: Under the provisions of section 10(35) of the Act, any income (other than income
arising from transfer of units) received by any person in respect of the units of the mutual fund is exempt
from income tax.
Gains on transfer / redemption of Units: Gains arising on transfer / redemption of Units as well as
switching between schemes will be chargeable to tax under the Act. The characterization of income from
investment in securities as 'business income' or 'capital gains' will have to be examined on a case-to-case basis.
¢ Business Income
Where the units are regarded as Business Asset, then any gain arising from transfer / redemption of Units
would be taxed under the head "Profits and Gains of Business or Profession" under section 28 of the Act.
The gain / loss is to be computed under the head "Profits and Gains of Business or Profession" after allowing
normal business expenses (inclusive of the expenses incurred on transfer).
Business Income is chargeable to tax at the following rates:
Assessee % of Income Tax
Individuals, HUF, Association of Persons Applicable Slab Rates
Partnership Firms [including Limited Liability 30%
Partnerships (‘LLPs’)] & Indian Corporates
Foreign Company 40%
The income tax rates specified above and elsewhere in this document are exclusive of the applicable surcharge,
education cess and secondary and higher education cess. Persuant to the Finance Bill, 2010, following rates
for surcharge is applicable. The details are as given below:
Assessee % of Income Tax
Individual (including proprietorships), HUF, Association of Nil
Persons and Partnership Firms (including LLPs)
Indian Corporates (if income exceeds ` 1 crore) 7.5%
Foreign Company (if income exceeds ` 1 crore) 2.5%
Additionally, education cess and secondary and higher education cess is leviable @ 3% on the income tax
and surcharge as computed above.
¢ Capital Gains
The mode of computation of capital gains would be as follows:
Sale Consideration xxx
Less: Cost of Acquisition (Note 1) (xxx)
Expenses on Transfer (Note 2) (xxx)
Capital Gains xxx
Note 1: In case of the computation of long-term capital gains, option of indexation of cost is available.
Note 2: This would include only expenses relating to transfer of units. Normal business expenses
would not be allowable.
Capital gain arising on transfer or redemption of units held for a period of more than 12 months is regarded
as "Long-term Capital Gain" which otherwise would be "Short-term Capital Gain".
• Long term capital gains
In case of other than Equity Oriented Fund, including Money Market Mutual Fund or a Liquid Fund
As per section 112 of the Act, tax on income on long term capital gains arising from the transfer of units
shall be lower of the following amount:
(i) 10% plus applicable surcharge and education cess at the rate of 3% on the amount of tax and surcharge,
on the Long-term Capital Gains computed without substituting indexed cost of acquisition in place of
the cost of acquisition; or
(ii) 20% plus applicable surcharge and education cess at the rate of 3% on the amount of tax and surcharge,
on the Long-term Capital Gain computed after substituting indexed cost of acquisition in place of the
cost of acquisition.
The benefit of indexation will, however, not be available to specified Offshore Fund which is taxable @ 10%
plus applicable surcharge and education cess at the rate of 3% on the amount of tax and surcharge in terms
of section 115AB of the Act.

3
 The benefit of indexation will, also, not be available to Foreign Institutional Investors who are taxed under Income-tax is required to be deducted at source from the short-term capital gains under section 195 of the
section 115AD of the Act @ 10% plus applicable surcharge and education cess at the rate of 3% on the Act at the applicable rates. In the case of an assessee resident of a country with which a DTAA is in force,
amount of tax and surcharge. the tax should be withheld as per the provisions of the Act or the provisions in the DTAA which ever is more
The income by way of long term capital gains of a company would be taken into account in computing the beneficial to the assessee. However, the Unit holder will be required to provide appropriate documents to
book profits and Minimum Alternate Tax payable, if any, under Section 115JB of the Act (irrespective of the Fund, to be entitled to a beneficial rate under such DTAA.
whether or not it is exempt under Section 10(38) of the Act). • In case of 'Equity Oriented Fund' for Non-Resident unit holders (including Offshore fund
In case where the taxable income as reduced by Long-term Capital Gains of a resident individual and Hindu unit holders)
Undivided family is below the taxable limit, the Long-term Capital gain will be reduced to the extent of such Income-tax is required to be deducted at source from the capital gains under section 195 of the Act at the
shortfall and only the balance Long-term Capital Gain is chargeable to Income-tax. applicable rates.
The following deductions are available from Long-term Capital Gains arising on sale of Mutual Fund units, Under the Act, the following rates have been prescribed for deduction of tax at source from capital gains:
if the sale proceeds are invested in eligible avenues:
− Income by way of long-term capital gains arising from transfer of units subject to STT is exempt from
Section 54 EC Section 54F tax.
Eligible persons All assesses Individual and HUFs − On income by way of short-term capital gains arising from transfer of units subject to STT taxable
Asset to be purchased Specified Bonds of National Highways Residential house property under section 111A @ 15% (plus applicable surcharge and education cess).
to claim exemption Authority of India and Rural Income-tax is required to be deducted at source from the capital gains under section 195 of the Act at the
Electrification Corporation Limited applicable rates. In the case of an assessee resident of a country with which a DTAA is in force, the tax
(cap of ` Fifty Lakhs in a financial year) should be withheld as per provisions in the Act or as per the provisions in the DTAA which ever is more
Time-limit for purchase 6 months Purchase: 1 year backward / 2 years beneficial to the non-resident holder. However, such a non-resident unit holder will be required to provide
from date of sale of MF units forward & Construction: 3 years forward appropriate documents to the Fund, to be entitled to a beneficial rate under such DTAA.
Amount Exempt Investment in the new asset Capital gains proportionate to the Foreign Institutional Investors
or capital gain whichever is investment made from the sale proceeds As per the provisions of section 196D of the Act, no deduction of tax shall be made from any income, by way
lower (subject to other conditions of owning / of capital gains arising from the transfer of securities referred to in section 115AD, payable to a Foreign
purchasing residential house mentioned Institutional Investor.
in the section)
Default in furnishing the PAN
Lock-in period 3 years 3 years Section 206AA of the Act inserted by the Finance (No.2) Act, 2009 operative with effect from April 1, 2010
The investment under section 54EC on account of which exemption has been claimed from long-term states that the deductee is required to mandatorily furnish his PAN to the deductor failing which the
capital gains will not be available for deduction under section 80C of the Act. deductor shall deduct tax at source at higher of the following rates:
1. the rate prescribed in the Act; 2. at the rate in force i.e., the rate mentioned in the Finance Act; or
• Short-term Capital Gain 3. at the rate of 20%.
In case of other than Equity Oriented Fund, including Money Market Mutual Fund or a Liquid Fund
Dividend Stripping
Short term capital gains arising from the transfer of units of funds other than equity oriented scheme would
be chargeable to tax as under: As per Section 94(7) of the Act, loss arising on sale of units, which are bought within 3 months of the record
date and sold within 9 months after the record date, shall be ignored for the purpose of computing income
Short term capital gains are taxed at the normal rates applicable to each unitholder. In case where the chargeable to tax to the extent of exempt income received or receivable on such Units.
taxable income as reduced by Short-term Capital Gains of a resident individual and Hindu Undivided Family
is below the taxable limit, the Short-term Capital gain will be reduced to the extent of such shortfall and Bonus Stripping
only the balance Short-term Capital Gain is chargeable to Income-tax. As per Section 94 (8) of the Act, units purchased within a period of 3 months prior to record date of
entitlement of bonus and sold within a period of 9 months after such date, the loss arising on transfer of
In case of Equity Oriented Fund original units shall be ignored for the purpose of computing the income chargeable to tax.
Short Term Capital Gains arising from transfer of units of an Equity Oriented scheme (as defined u/s 115T
The amount of loss so ignored shall be deemed to be the cost of purchase / acquisition of the bonus units.
of the Income Tax Act, 1961), being subjected to STT would be charged to tax u/s 111A of the Income Tax
Act, 1961 @ 15% (plus applicable surcharge, education cess and secondary and higher education cess). The
III. Religious and Charitable Trust
mutual fund would recover STT from the unit holder at the applicable rates when the units are re-purchased
by the mutual fund/ redeemed by the investor. Investments in Units of the Mutual Fund will rank as an eligible form of investment under
In case where the taxable income as reduced by Short-term Capital Gains of a resident individual and Hindu section 11(5) of the Act read with Rule 17C of the Income tax Rules, 1962 for Religious and Charitable Trust.
Undivided family is below the taxable limit, the Short-term Capital Gain will be reduced to the extent of
such shortfall and only the balance Short-term Capital Gain is chargeable to Income-tax. IV. Wealth-tax
Units held under the Scheme of the Fund are not treated as assets within the meaning of section 2(ea) of
Deduction of income tax at Source from Capital Gains the Wealth-tax Act, 1957 and are, therefore, not liable to Wealth-tax.
• Resident Unit holders
No income tax is required to be deducted at source from capital gains arising on transfer of units by V. Gift-tax
resident unit holders. The Gift -Tax Act, 1958 has been repealed since October 1, 1998. Gift of units of Mutual fund units would be
• In case of funds other than 'Equity Oriented Fund' under the Act subject to income-tax in the hands of the donor. As per section 56(2)(vii), receipts of securities, fair market
value of which exceeds fifty thousand rupees, without consideration or without adequate consideration is
A) Non-Resident unit holders taxable as income in the hands of individuals / HUfs.
Income-tax is required to be deducted at source from the capital gains under section 195 of the Act at the
Further the above provision of section 56(2)(vii) shall not apply to any units received by the donee
applicable rates.
(a) from any relative; or (b) on the occasion of the marriage of the individual; or (c) under a will or by
Under the Act, the following rates have been prescribed for deduction of tax at source from capital gains: way of inheritance; or (d) in contemplation of death of the payer or donor, as the case may be; or (e) from
− On income by way of long-term capital gains @ 20% (plus applicable surcharge and education cess) any local authority as defined in the Explanation to clause (20) of section 10 of the Act; or (f) from any fund
− On income by way of short-term capital gains at normal rates as applicable under Business Income. or foundation or university or other educational institution or hospital or other medical institution or any
trust or institution referred to in clause (23C) of section 10 of the Act; or (g) from any trust or institution
In the case of an assessee of a country with which a Double Taxation Avoidance Agreement (DTAA) is in registered under section 12AA of the Act.
force, the tax should be withheld as per provisions in the Act or as per the provisions in the DTAA which ever
is more beneficial to the non-resident holder. However, such a non-resident unit holder will be required to Relative shall mean: (i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or
provide appropriate documents to the Fund, to be entitled to a beneficial rate under such DTAA. sister of the spouse of the individual; (iv) brother or sister of either of the parents of the individual; (v) any
lineal ascendant or descendant of the individual; (vi) any lineal ascendant or descendant of the spouse of
B) Offshore Fund unit holders the individual; (vii) spouse of the person referred to in clauses (ii) to (vi).
Under Section 196B of the Act, tax shall be deducted at source from the long term capital gains @ 10% plus
applicable surcharge, education cess and secondary and higher education cess at the rate of 3% on the
amount of tax and surcharge.

Investor is also advised to refer to the tax details in the Statement of Additional Information.

DAILY NET ASSET VALUE (NAV) PUBLICATION

The NAV of the Fund will be calculated on all Business Days. The NAV will be published in 2 daily newspapers having nationwide circulation and will also be
updated on the AMFI website i.e. www.amfiindia.com by 9.00 P.M. on all business days. The NAV can also be viewed on the website of the Mutual Fund i.e.
www.principalindia.com

FOR INVESTOR GRIEVANCES PLEASE CONTACT

Principal Mutual Fund: Maker Bhavan - II, 1st Floor, 18, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai- 400 020. India.
TOLL FREE: 1800 22 5600. Fax: 022-2204 4990. E-mail: customer@principalindia.com
Registrar: Karvy Computershare Pvt. Ltd. (Unit: Principal Mutual Fund), KARVY HOUSE, 46, Avenue- 4, Street No. 1, Banjara Hills, Hyderabad-500 034.
Tel.: (040) 2331 2454 • www.karvycomputershare.com

UNITHOLDERS’ INFORMATION
An Account statement or transaction statement reflecting the unit balance shall be dispatched to the unitholders after every transaction is effected. The Account
Statement shall normally be dispatched within ten business days on an ongoing basis. The Annual financial results of the Schemes or an abridged summary thereof shall
be mailed to all unitholders within 4 months from the date of the closure of the relevant accounts i.e. March 31 each year. The half yearly portfolio and unaudited
financial results, shall be published within one month from the close of each half year (i.e. 31st March and 30th September), in at least in one National English daily and
one regional newspaper in the region where the head office of the mutual fund is located.

Key Information Memorandum dated November 2, 2010.

4
 Application Form for Application No.
Principal SMART Equity Fund

NEW FUND OFFER OPENS ON : NOVEMBER 26, 2010 • NEW FUND OFFER CLOSES ON : DECEMBER 10, 2010
Please read the instructions before filling the Application Form
DISTRIBUTOR INFORMATION & APPLICATION RECEIPT DATE (Not to be filled in by the Applicant)
Broker Name & Code Sub-Broker Code I-Code Registrar Serial No. Bank Serial No. Date & Time of Receipt

ARN - 25682
Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investor’s assessment of various factors including the service rendered by the distributor.
1 EXISTING UNITHOLDERS DETAILS (Please note that the applicant details and mode of holding will be as per the existing Folio Number) [Refer instruction No. B(1)]
Please fill your Folio No. and Name and then proceed to Section 6. Common Account / Folio No.
Name of Sole /
First Unit Holder
2 NEW APPLICANT'S DETAILS (Please fill in BLOCK LETTERS with black/blue ink, use one box for one alphabet leaving one box blank between two words)
NAME OF FIRST / SOLE APPLICANT Mr. Ms
F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN Enclosed (please 3) PAN KYC Acknowledgement Letter^
STATUS - Resident Individual NRI / PIO / FI Partnership Firm BOI Minor Bank / FI Society/Club Trust Company Others (Please specify) _____________________

NAME OF THE SECOND APPLICANT Mr. Ms

F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN Enclosed (please 3) PAN KYC Acknowledgement Letter^

NAME OF THE THIRD APPLICANT Mr. Ms

F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN Enclosed (please 3) PAN KYC Acknowledgement Letter^

Guardian Name Mr. Ms (Mandatory if any of the applicant is a Minor) / Contact Person (In case of non-individual Investors - PAN not required for contact person)
F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN Enclosed (please 3) PAN KYC Acknowledgement Letter^
^ Refer Instruction No. D(II)
ADDRESS OF FIRST / SOLE APPLICANT [P.O. Box Address is not sufficient]

L A N D M A R K
City State Country Pin Code
OVERSEAS ADDRESS (in case the First Applicant is NRI/FII/PIO) [P.O. Box Address is not sufficient] {Refer Instruction No. B(6)}

City State Country Zip Code

CONTACT DETAILS OF FIRST / SOLE APPLICANT (Please ensure that you fill in the contact details for us to serve you better)
Phone O R Fax
Mobile I / We wish to receive updates via SMS on my mobile (Please 3)
e-mail I N B L O C K L E T T E R S
I/We wish to receive the following documents via e-mail in lieu of physical document(s) [Please 3] Account Statement Newsletter Annual Report Other Statutory Returns / Information
IF APPLICANT IS A NON-RESIDENT OCCUPATION OF 1ST APPLICANT / GUARDIAN (Please 3)
NRI (Repatriable) FII (Repatriable) NRI Minor (Repatriable) Business Service Profession Retired Agriculture
PIO NRI (Non Repatriable) NRI Minor (Non Repatriable) House Wife Student Others (Please specify) ______________________
MODE OF HOLDING (Please 3) Single Jointly Either / Anyone or Survivor (Default Option : Jointly)

3 NOMINATION [Applicants can make multiple nomination (to the maximum of three) by filing nomination form available at our Investor Service Centres / www.principalindia.com]
I/We do hereby nominate the undermentioned Nominee to receive the Units allotted to my/our credit in my/our folio in the event of my/our death. I/We also understand that all payments and
settlements made to such Nominee and Signature of the Nominee acknowledging receipt thereof, shall be valid discharge by the AMC/Mutual Fund/ Trustees.
NOMINEE’S NAME Mr. Ms
Date of Birth D D M M Y Y Y Y
(In case of minor)
NAME OF PARENT / LEGAL GUARDIAN (in case of minor) Mr. Ms

ADDRESS OF NOMINEE / GUARDIAN

City Pin Code Specimen Signature of Nominee / Guardian

... continued overleaf
 
ACKNOWLEDGEMENT SLIP (To be filled in by the Applicant)
Application No.
ARN No:
Received from ___________________________________________________________________________________________________
Cheque / DD / RTGS / NEFT / Bank Transfer No. _________________________________________ Dated: ______/______/______________
DD MM YYYY
Drawn on Bank & Branch _________________________________________________________________________________________
Scheme / Option ________________________________________________________________________________________________
Amount ` _______________________________________________ Signature, Stamp & Date
Please Note : All purchases are subject to realisation of payment instrument
5
 4 BANK ACCOUNT DETAILS (Mandatory) [Refer Instruction No. C(II)]
Bank Name
(Do not abbreviate)
Account No. Branch / City
(Please provide the full account number)
Branch Address
Pin Code
Account Type (Please 3) For Residents Savings Current For Non-Resident NRO NRE Repatriable Non-Repatriable Others ______________________________________
MICR Code* This is a 9 digit number next to your Cheque No.
Essential Enclosures : (For Direct Credit)
Only for IFSC* NEFT* Blank cancelled cheque Copy of cheque
RTGS* Code Code
Direct Credit Facility is currently available with : BNP Paribas Bank, Citibank, Deutsche Bank, ICICI Bank, IDBI Bank, HDFC Bank, HSBC Bank, Kotak Mahindra Bank, Punjab National Bank, Standard Chartered Bank,
Axis Bank, Indusind Bank and Development Credit Bank (only for dividend). For an update in this list please contact any of our ISC at the contact details provided overleaf.
• Please verify and ensure the accuracy of the bank details provided above as it shall appear in your account statement which shall be issued to you should your application be accepted. Principal Mutual Fund
shall not be held responsible for delays or errors in processing your request if the information provided is incomplete or inaccurate. [* indicates - Mandatory]
5 DOCUMENTS ENCLOSED (Please 3)
Memorandum & Article of Association (MOA & AOA) Trust Deed Bye-Laws Partnership Deed Resolution / Authorisation to invest
List of Authorised Signatories with Specimen Signature(s) Power Of Attorney (POA)

6 PAYMENT DETAILS (Mandatory) [Refer Instruction No. C(I)]

(i) Investment (ii) DD Charges (`) Net Amount (`)
Amount (`) (i)+(ii)
Mode of Payment (Please 3) Cheque DD RTGS NEFT ECS Funds Transfer *Cheque / DD / RTGS / NEFT No.
Account Type (Please 3) Savings Current NRE NRO FCNR NRSR Dated D D M M Y Y Y Y
Payment from
Bank A/c. No. Name of 1st A/c holder
Drawn on Bank Name of 2nd A/c holder
Branch & City Name of 3rd A/c holder
Details of the Payer (In case, the payer is not a Bank A/c. holder as mentioned above)
Enclosed (please 3)
Parent/Grand Parent/related person: Name
KYC Acknowledgement Letter
Employer: Name
Declaration of the Bank A/c.
Custodian: Name
Please enclose relevant documents as indicated below as per the Mode of Payment:
DD / Pay order / Banker’s Cheque and the like Declaration from Bank
RTGS / NEFT / ECS / Bank Transfer Instruction to the Bank from the Unitholder to Debit the Account.
* Please mention the Application No., PAN and Name of the First Unitholder on the reverse of the Payment Instrument. All Payment Instrument should be drawn in favour of
“Principal SMART Equity Fund” and crossed A/c. Payee only.
For ASBA Applications$, please tick here (3) [$ Investors wishing to avail of ASBA facility are requested to submit the ASBA Application Form with SCSB. The investor is
required to submit a copy of the acknowledgment receipt of the ASBA Form [as submitted to the SCSB] along with the NFO application form to Principal Mutual Fund. (Refer Instruction No. E)]

7 INVESTMENT DETAILS (Please  Choice of Scheme / Option) - Please ensure there is only one cheque/DD per application form
Principal SMART Equity Fund (Default Option between Growth and Dividend shall be Growth and in case of
Growth Dividend – Payout Reinvestment Sweep Dividend Payout, Reinvestment & Sweep, default shall be Dividend Reinvestment)

8 DECLARATION AND SIGNATURES

I/We have read and understood the contents of the Scheme Information Document/s to Principal Smart Equity Fund including
the sections on “Prevention of Money Laundering and Know Your Customers”. I / We hereby apply to the Trustees of the APPLICANT SIGNATURE POA HOLDER SIGNATURE
Principal Mutual Fund (the Mutual Fund) for units of Principal SMART Equity Fund as indicated above [“the Scheme”] and agree Signature of
to abide by the terms and conditions, of the Scheme and such other scheme(s) of the Mutual Fund [Scheme(s)] into which my/
our investment may be moved pursuant to any instruction received from me/us to switch the units as applicable to my / our 1st Applicant / POA Details - Name
investment including any further transaction under the Scheme(s). I / We have not received nor have been induced by any rebate POA Holder /
or gifts, directly or indirectly, in making this investment. I/We further declare that the amount invested by me/us in the Scheme(s) Guardian PAN
is derived through legitimate sources and is not held or designed for the purpose of contravention of any act, rules, and Enclosed (please 3) PAN KYC (Attach copy of PAN & KYC^)
regulations or any statute or legislation or any other applicable laws or any notifications, directions issued by any governmental
or statutory authority from time to time. I/We hereby confirm that I/we have read and understood the contents on “Third
SIGNATURES

Party Payments” and confirm that the payment for this subscription application has been made from my/our Account or APPLICANT SIGNATURE POA HOLDER SIGNATURE
from such accounts as permitted by SEBI / AMFI and provided in the said section on Third Party Payments. Further, relevant Signature of
declaration and documents as mandated herein have been provided for the mode of my payment.
2nd Applicant / POA Details - Name
I/We further confirm that I/we have the express authority from the relevant constitution to invest in the units of the Scheme
and the Principal Pnb Asset Management Company Pvt. Ltd. [AMC], its Trustee and the Mutual Fund would not be responsible POA Holder /
if the investment is ultra vires the relevant constitution. Guardian PAN
I/We further confirm that the ARN holder (Broker/Sub-Broker) has disclosed to me/us all the commissions (in the form of trail Enclosed (please 3) PAN KYC (Attach copy of PAN & KYC^)
commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst
which the Scheme(s) has been recommended to me/us.
I / We authorize AMC to reject the application, reverse the units credited, restrain me/us from making any further investment in APPLICANT SIGNATURE POA HOLDER SIGNATURE
any of the Scheme/s of Principal Mutual Fund, recover / debit my/our folio(s) with the penal interest and take any appropriate Signature of
action against me/us in case the cheque(s) / payment instrument is /are returned unpaid by my/our bank for any reason whatsoever. 3rd Applicant / POA Details - Name
I/We hereby further agree that AMC can directly credit all the dividend payouts and redemption amount to my / our bank POA Holder /
account, where AMC has such arrangement with my / our Bank. Guardian PAN
Applicable to NRIs only: I / We confirm that I am / we are Non- Residents of Indian Nationality / Origin and I / We hereby
confirm that the funds for subscription have been remitted from abroad through approved banking channels or from funds Enclosed (please 3) PAN KYC (Attach copy of PAN & KYC^)
in my/our Non-Residents External/ Ordinary Account /FCNR Account.
^ Refer Instruction No. D(II)

For investment related enquiries, Investor Grievance please contact:

Principal Mutual Fund Principal Mutual Fund
Exchange Plaza, ‘B’ Wing, IInd Floor, NSE Building, Maker Bhavan - II, 1st Floor, 18, Sir Vithaldas Thackersey Marg,
Bandra Kurla Complex, Bandra (E), New Marine Lines, Mumbai- 400 020, India
Mumbai - 400 051, India. TOLL FREE: 1800 22 5600. Fax: 022-2204 4990.
(Not an Official Point of Acceptance) Email : customer@principalindia.com Website : www.principalindia.com

CHECK LIST : Please ensure the following : • Application form is complete in all respects and signed by all Applicants • Bank Account details are filled • Copy of PAN card • Copy of Know Your Customer (KYC)
Acknowledgement letter issued by CDSL Ventures Ltd / printout of KYC compliance status downloaded from CVL website, as applicable • Appropriate options are filled • All cheques/drafts should be made out in
favour of ”Principal SMART Equity Fund” and crossed “Account Payee Only” • If you are investing for the first time, please ensure that you fill in the contact details for us to serve you better.
6
 SIP Auto Debit Form through ECS for REGISTRATION CUM MANDATE
Principal SMART Equity Fund FORM FOR ECS

SIP Auto Debit Form should be accompanied with NFO Application Form and shall be accepted only
at AXIS Bank and KOTAK Bank locations as indicated on the last page of this Form, upto December 3, 2010

First Investment in SIP vide a cheque and subsequent investments via Auto Debit, available in selected cities only.
New SIP Registration - by an existing investor A/c. No. for Existing Investors
New SIP Registration - by a new investor (Also attach the NFO Application Form duly filled & signed) Application No. (As mentioned on the main Application Form)
Micro SIP - Refer Instruction No. 16

DISTRIBUTOR INFORMATION & APPLICATION RECEIPT DATE

Broker Name & Code Sub-Broker Code I-Code Registrar Serial No. Bank Serial No. Date & Time of Receipt

ARN - 25682
Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investor’s assessment of various factors including the service rendered by the distributor.

1 EXISTING UNITHOLDERS DETAILS (Please note that the applicant details and mode of holding will be as per the existing Folio Number) [Refer instruction No. B(5)]
Please fill your Folio No. and Name and then proceed to Section 3. Common Account / Folio No.
Name of Sole /
First Unit Holder

2 NEW APPLICANT'S DETAILS (Please fill in BLOCK LETTERS with black/blue ink, use one box for one alphabet leaving one box blank between two words)
NAME OF FIRST / SOLE APPLICANT Mr. Ms
F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN

Attested Photo ID submitted for Micro SIP: Name of Document Document ID Number [Refer Instruction No. E (16-I)]

NAME OF THE SECOND APPLICANT Mr. Ms

F I R S T N A M E M I D D L E N A M E L A S T N A M E
Date of Birth D D M M Y Y Y Y PAN

Attested Photo ID submitted for Micro SIP: Name of Document Document ID Number [Refer Instruction No. E (16-I)]

NAME OF THE THIRD APPLICANT Mr. Ms

F I R S T N A M E M I D D L E N A M E L A S T N A M E

Date of Birth D D M M Y Y Y Y PAN

Attested Photo ID submitted for Micro SIP: Name of Document Document ID Number [Refer Instruction No. E (16-I)]

3 SIP DETAILS (Please note that a minimum 30 days are required to set up Auto Debit)
Each SIP Amount (`) First SIP Cheque No. (Note: Cheque should be drawn on
bank details provided below)
Second and subsequent
1st 5th 15th 25th (the date on which you want to SIP Period Start From M M Y Y End on
installment dates invest for subsequent period) (2nd instalment) (Last instalment) M M Y Y

FOR BANK USE ONLY (Not to be filled in by Applicant)

Recorded on Scheme Code

Recorded by Credit Account

Number
Bank use
Mandate Ref. No. Customer Ref. No.

AUTHORISATION OF THE BANK ACCOUNT HOLDER [to be signed by all the Account Holder(s)]
I / We hereby authorise the bank to debit my / our account for making payment to Principal Mutual Fund through ECS (Debit) as per the details given herein.
I/We have read the relevant Scheme Information Document and Statement of Additional Information and agree to discharge the responsibility expected of me/
us as a participant under the concerning scheme(s). I/We will also inform Principal Mutual Fund, about any changes in my/our bank account.
Further this is to inform you that, I / we have registered with the RBI’s Electronic Clearing Service and that the payment towards my investment in Principal
Mutual Fund shall be made from my/our within bank account with your bank. I/We authorise the representative carrying this ECS Mandate Form to get it Bank Account Number
verified & executed, if necessary. The verification charges, if any, may be debited from my/our account. I/We hereby further authorise Principal Mutual Fund,
acting through their authorised service providers to debit my / our bank account by ECS (Debit Clearing) for collection of SIP payments.

First Account Holder’s Signature (As in Bank Records) Second Account Holder’s Signature (As in Bank Records) Third Account Holder’s Signature (As in Bank Records)
 4 PAYMENT DETAILS (Mandatory) [Refer Instruction No. C(I)]
(i) Investment (ii) DD Charges (`) Net Amount (`)
Amount (`) (i)+(ii)
Mode of Payment (Please 3) Cheque DD Account Type (Please 3) Savings Current NRE NRO FCNR NRSR
Ledger No. / Ledger Folio No. MICR Code** This is a 9 digit number next to your Cheque No.
Payment from
Bank A/c. No. Name of 1st A/c holder
Drawn on Bank Name of 2nd A/c holder
Branch & City Name of 3rd A/c holder

Details of the Payer (In case, the payer is not a Bank A/c. holder as mentioned above) [Refer Instruction No. C(II) for Declaration Format]
Enclosed (please 3)
Parent/Grand Parent/related person: Name
KYC Acknowledgement Letter
Employer: Name
Declaration of the Bank A/c.
Custodian: Name

Please enclose, in case of following Mode of Payment: [Refer Instruction No. C(II) for Declaration Format] Mandatory Enclosure
DD / Pay order / Banker’s Cheque Declaration from Bank Blank Cancelled Cheque Copy of Cheque

* Please mention the Application No., PAN and Name of the First Unitholder on the reverse of the Payment Instrument. All Payment Instrument are drawn in favour of
“Principal SMART Equity Fund” and crossed A/c. Payee only.
** Please provide the MICR Code of the bank branch from where the ECS is to be effected. MICR Codes starting or ending with 000 are not valid for ECS.

Name of the Scheme / Plan / Option Start Date Periodicity (Mthly / Qly) Each amount of installment Number of installments

In case of any discrepancy in the name of Scheme / Plan / Option, the scheme investment details provided in the NFO Application Form shall prevail.

I/We confirm that I/we have read and understood the contents of the Statement of Additional Information and Scheme Information Document of the respective Scheme(s). I/We have requested transaction(s)
as stated herein and agree to abide by the terms and conditions of the respective scheme(s)/Plan(s)/Option(s). I/we will also inform Principal Mutual Fund of any changes in my/our account details. I/We herein
declare that the particulars given above are correct and express my/our willingness to make payments referred above through participation in ECS. In case the cheques/ my/our instructions to the Bank are
dishonoured or cannot be acted upon, then in such an event the Bank, the AMC and Principal Mutual Fund shall not be held responsible.
I/We hereby confirm that I/we have read and understood the contents on “Third Party Payments” and confirm that the payment for this subscription application has been made from my/our Account or from
such accounts as permitted by SEBI / AMFI and provided in the said section on Third Party Payments. Further, relevant declaration and documents as mandated herein have been provided for the mode of my
payment.
I/We further confirm that the ARN Holder (Broker/sub-Broker) has disclosed to me/us all the commissions (in the form of trail commission or any other mode) payable to him for the different competing schemes
of various Mutual Funds from amongst which the Scheme(s) has been recommended to me/us. I/we further understand that the contents hereof form an integral part of the main application form.

Signature of 1st Applicant / POA Holder / Guardian Signature of 2nd Applicant / POA Holder / Guardian Signature of 3rd Applicant / POA Holder / Guardian
(Signature of the legal guardian when the Unit Holder is minor) (Signature of the legal guardian when the Unit Holder is minor) (Signature of the legal guardian when the Unit Holder is minor)

Please note Signature(s) should be as it appears on the application form and in the same order. In case, Mode of Holding is joint, all applicants are requested to sign.

Date D D M M Y Y Y Y
(Bank’s Stamp) Signature of the Authorised Official from the Bank

SIP AUTO-DEBIT (ECS) FORM - CHECKLIST

ECS (DEBIT CLEARING) PLEASE ENSURE THAT - :
1. SIP Auto Debit facility is offered to investors having bank accounts in selected cities where
they are located currently as provided above and within these cities were the AMC offices
are located.
2. The first cheque should be drawn on the same bank account which is to be registered for ECS
(Debit Clearing) / Direct Debit. Alternatively, the cheque may be drawn on any bank, but provide
a photocopy of the cheque of the bank / branch for which ECS (Debit Clearing) / Direct Debit is
registered.
3. First SIP Cheque and subsequent SIP installments via ECS (Debit Clearing) / Direct Debit
should be of the same amount.
4. The bank account provided for ECS (Debit) should participate in local MICR clearing.
5. The investor agrees to abide by the terms and conditions of ECS facility of Reserve Bank of
India (RBI).
6. The application form is completed in all respect and signed by all the applicants.
7. Bank account details are correctly and completely furnished including the 9 Digit MICR
Code which is mandatory for SIPs through ECS. 9 digit Branch MICR code to be mentioned on
the SIP form. For payable at par cheques applicant need to mention the bank branch MICR
no. on the SIP application form. If MICR code starts with 000 and end with 000 then investor
should confirm the 9 digit MICR code with his / her bank.
8. The Name & Signature of investors on main application form & ECS application form should
be same. Scheme details such as Scheme, plan, option should be correctly mentioned on
main application & ECS Forms.
9. The Cheque / DD is drawn in favour of “Principal SMART Equity Fund” and crossed “Account
Payee Only”.
10. Application number, Name of First Unitholder & PAN is mentioned on the reverse of the
cheque / DD.
 Maker Bhavan - II, 1st Floor, 18, Sir Vithaldas Thackersey Marg,
New Marine Lines, Mumbai- 400 020.
Toll Free - 1800 22 5600 • Fax: 022-2204 4990.
ASBA FORM
Website: www.principalindia.com E-mail: customer@principalindia.com
(To be submitted to Self Certified Syndicate Bank [SCSB])

NEW FUND OFFER (NFO)

OPENS ON : NOVEMBER 26, 2010
Principal SMART Equity Fund CLOSES ON : DECEMBER 10, 2010
Application No.
Date

DISTRIBUTOR INFORMATION

Broker Name & Code ARN - 25682 Sub-Broker Code

Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investor’s assessment of various factors including the service rendered by the distributor.

APPLICANT'S DETAILS (Please fill in BLOCK LETTERS with black/blue ink, use one box for one alphabet leaving one box blank between two words)
NAME OF FIRST / SOLE APPLICANT Mr. Ms
(For existing unitholder(s) please furnish your Common Account / Folio No.)
F I R S T N A M E M I D D L E N A M E L A S T N A M E

PAN Common Account / Folio No.

INVESTOR CATEGORY (Please 3 as applicable; Refer Instruction No. 4)

IND HUF NRI FII FI IC MF MINOR

BANK TRUST AOP SOCTY BOI CO OTH Please specify

DETAILS OF BANK ACCOUNT FOR BLOCKING OF FUNDS

Bank Name
(Do not abbreviate)
Account No. Branch Name
(Please provide the full account number)
City Pin Code

For Residents For Non-Resident

Account Type (Please 3)
Savings Current NRO NRE Repatriable Non-Repatriable Others ______________________________________

Amount to be blocked (`)

Amount in words

INVESTMENT DETAILS DEMAT ACCOUNT DETAILS

Option(s) Please (3) the Option selected National Securities Depository Limited
in the NFO application form Depository Participant (DP) ID

Growth Option Beneficiary Account Number

Dividend Payout Option

Central Depository Services (India) Limited
Depository Participant (DP) ID
Dividend Reinvestment Option

Beneficiary Account Number

Dividend Sweep Option

 
ACKNOWLEDGEMENT SLIP (To be filled and attached by the Applicant with the NFO Application Form)

NFO OPENS ON : NOVEMBER 26, 2010

Principal SMART Equity Fund NFO CLOSES ON : DECEMBER 10, 2010

Received from __________________________________________________________ (sole / first applicant) ASBA Form dated ____________________ details of which are as follows:

Application No. __________________________________________________________ Amount Blocked (`) _____________________________________________________

SCSB (Bank and Branch) ___________________________________________________ Bank Account No. _______________________________________________________

Date of Submission _______________________________________________________

 UNDERTAKING BY ASBA INVESTOR AND ACCOUNT HOLDER
(1) I/ We hereby undertake that, I/ we have read and understood the instructions contained in this Form and Terms and Conditions concerning ASBA as contained in the Scheme Information
Document (SID) / Key Information Memorandum (KIM) of the above mentioned Scheme and Statement of Additional Information (SAI) of Principal Mutual Fund. Further, I/we understand that
if the details as provided by me/us in this Form are different from those in the NFO Application Form, then in such a case; the information as provided by me/us in the NFO Application Form
will be relied upon. I/we further confirm and undertake that I am/ we are eligible ASBA applicants(s) as per the relevant provisions of the SEBI (Issue of Capital and Disclosure Requirement
[ICDR]) Regulations, 2009.
(2) In accordance with provisions of ASBA in the SEBI ICDR Regulations, 2009 and as disclosed in the SAI, I/We authorize
(a) the SCSB to do all acts as are necessary to make an application in the New Fund Offer of above mentioned Scheme, including uploading of application details, blocking the amount to
the extent mentioned above under "DETAILS OF BANK ACCOUNT FOR BLOCKING OF FUNDS" or unblocking of funds in the bank account maintained with the SCSB specified above,
transfer of funds to the Principal Mutual Fund's account on receipt of instructions from the Registrar to Principal Mutual Fund after finalisation of the basis of allotment, entitling me/us
to receive mutual fund units on such transfer of funds, etc.
(b) Registrar to issue instructions to the SCSB to unblock the funds in the bank account specified above upon finalisation of the basis of allotment and to transfer the requisite money to the
Principal Mutual Fund's account.
(3) In case the amount available in the bank account specified above is insufficient, the SCSB shall reject the application.
(4) If the details as furnished in the form are incorrect or incomplete or not matching with the NFO Application Form, Principal Mutual Fund reserves the right to reject the Application Form and
Principal Mutual Fund or SCSB shall not be liable for losses, if any.
SIGNATURES

1ST APPLICANT / POA HOLDER / GUARDIAN 2ND APPLICANT / POA HOLDER 3RD APPLICANT / POA HOLDER
SIGNATURE SIGNATURE SIGNATURE

SCSB BANK - 1ST ACCOUNT HOLDER SCSB BANK - 2ND ACCOUNT HOLDER SCSB BANK - 3RD ACCOUNT HOLDER
SIGNATURE SIGNATURE SIGNATURE

INSTRUCTIONS FOR INVESTORS

1. SCSB means Self Certified Syndicate Bank registered with the SEBI, which offers the facility of ASBA. The current list of SCSBs as available on SEBI website is as follows:
1. Axis Bank Ltd 2. State Bank of Hyderabad 3. Corporation Bank 4. State Bank of Travencore 5. IDBI Bank Ltd. 6. State Bank of Bikaner and Jaipur 7. YES Bank Ltd. 8. Punjab National Bank
9. Deutsche Bank 10. Union Bank of India 11. HDFC Bank Ltd. 12. Bank of Baroda 13. ICICI Bank Ltd 14. Vijaya Bank 15. Bank of Maharashtra 16. State Bank of India 17. Andhra Bank
18. HSBC Ltd. 19. Kotak Mahindra Bank Ltd. 20. Bank of India 21. CITI Bank 22. IndusInd Bank 23. Allahabad Bank 24. Karur Vysya Bank Ltd. 25. The Federal Bank 26. Indian Bank
27. Central Bank of India 28. Oriental Bank of Commerce 29. Standard Chartered Bank 30. J P Morgan Chase Bank, N.A. 31. Nutan Nagarik Sahakari Bank Ltd. 32. UCO Bank 33. Canara Bank
34. United Bank of India 35. Syndicate Bank.
For the complete list of controlling / designated branches of above mentioned SCSBs, please refer to websites - www.sebi.gov.in, www.bseindia.com and www.nseindia.com
2. Eligible investors for ASBA maintaining their account in any of the above SCSBs may use ASBA facility subject to fulfilling all the terms and conditions stipulated in this regard.
3. The investor is required to submit a copy of the acknowledgment receipt of the ASBA Form (as submitted with SCSB) along with the NFO application form to be furnished to Principal
Mutual Fund.
4. Invetors shall tick the applicable category in the form, please note the various categories below:
Code Category Code Category Code Category
IND Individual IC Insurance Companies AOP Association of Persons
HUF Hindu Undivided Family MF Mutual Funds SOCTY Society
NRI Non-Resident Indian MINOR Minor (Through Guardian) BOI Board of Individuals
FII Foreign Institutional Investor BANK Bank CO Bodies Corporate
FI Banks & Financial Institutions TRUST Trust OTH Others

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) Ltd.]. Trustee: Principal Trustee Company Private Limited. Investment Manager: Principal Pnb Asset
Management Company Private Limited (AMC). Risk Factors: Mutual funds and securities investments are subject to market risks and there can be no assurance and no guarantee that the scheme’s
objective can be achieved. As with any investment in securities, the NAV of the units issued under the scheme can go up or down, depending upon the factors and forces affecting the capital
markets. Past performance of the Sponsor and any of its associates, co-settlors and/or AMC/ Mutual Fund does not indicate or guarantee the future performance of the Schemes of Principal Mutual Fund.
Scheme Classification and Objective: Principal SMART Equity Fund (An open-ended Equity Scheme); 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. Asset Allocation: Equity & Equity Related Instruments of Large Cap Companies : 0% to 100%; Debt or Money Market Securities and/or units
of money market/ liquid schemes of Principal Mutual Fund.: 0% to 100%. Investment in derivatives shall be upto 50% of the net assets of the Scheme. Deployment upto 50% of its total net assets of the
Scheme in Stock Lending, subject to the SEBI regulations. The Scheme has no intention to invest in Securitised Debt. Terms of Issue: Issue of units at ` 10/- per unit during the New Fund Offer and at NAV based
prices during the Continous Offer. General Service: NAV shall be disclosed on all business days. The Scheme offers repurchase / redemption facility at NAV based prices on all the business days. Risk Factor
specific to the Scheme: A portfolio managed on PE ratios may not outperform a fully invested portfolio even at the peak of a bull market. Load Structure: Entry Load: N.A. and Exit Load: From the date
of allotment if redeemed any time • Upto 1 Year - 2.00% • Upto 2 Years - 1.00% • After 2 Years - Nil. Principal SMART Equity Fund (an open ended equity scheme) is only the name of the Scheme and
does not in any manner indicate either the quality of the Scheme or its future prospects or returns. The Sponsor and any of its associates including co-settlors is not responsible or liable for any loss
resulting from the operations of the Mutual Fund beyond the initial contribution of an amount of ` 25 Lakhs towards setting up Principal Mutual Fund. Investors in the scheme is 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 scheme
specific risk factors, terms of issue etc. investors are urged to read the Scheme Information Document (SID) / Statement of Additional Information (SAI) and Key Information Memorandum
(KIM) carefully and consult with their legal/tax/investment advisor before they invest in the Scheme. Copy of SID/SAI & KIM can be obtained at the investor service centres of AMC and
website: www.principalindia.com. Alternately investors can call our Toll Free No: 1800 22 5600 to obtain a copy of the same.

 
Principal Mutual Fund For investment related enquiries, Investor Grievance please contact:
Exchange Plaza, ‘B’ Wing, 2nd Floor, NSE Building, Principal Mutual Fund
Bandra Kurla Complex, Bandra (E), Maker Bhavan - II, 1st Floor, 18, Sir Vithaldas Thackersey Marg,
Mumbai - 400 051. New Marine Lines, Mumbai- 400 020.
(Not an Official Point of Acceptance) TOLL FREE: 1800 22 5600. Fax: 022-2204 4990.
Email : customer@principalindia.com Website : www.principalindia.com
 INSTRUCTIONS FOR COMPLETING THE NFO / SIP APPLICATION FORM
This application form is for Resident Investors/NRIs etc., and should be completed in English in
BLOCK LETTERS & BLACK/BLUE INK only. Any overwriting/ cancellation should be countersigned by
the applicants. Failing which such application forms shall be liable for rejection. Please tick (4) in
the appropriate box provided.
Please read the terms of the Scheme Information Document of the Scheme carefully before
filling in the application form. All applicants are deemed to have accepted the terms subject to
which this offer is being made and bind themselves to the terms upon signing the Application Form
for tendering the payment. Application should be for a minimum amount specified for each
Scheme/Option.
(A) HOW TO APPLY
Applicants can invest in the scheme by filling the investment amount. Applicants should submit a
single cheque under one Application Form for all investments. During the NFO, applications will be
accepted at the NFO Collection Centres.
Payment Procedures only
Resident Investor: Resident Investors may submit payment for units by cheque/demand draft,
payable locally and drawn on any bank which is a member of the Bankers Clearing House located at
the place where the application form is submitted.
All cheques/demand drafts should be drawn in favour of “Principal SMART Equity Fund” and
crossed A/c. Payee only.
Payment Procedures for NRIs
Repatriation Basis: Payments may be made through Indian Currency Cheques/Demand Drafts. NRI
applications can also be made by submitting payments through demand drafts purchased from
FCNR bank accounts or cheques drawn on NRE accounts. All cheques/drafts should be locally payable
at the NFO Collection Centres. All applications must be accompanied with a FIRC.
Non-Repatriation Basis: In case of NRIs seeking to apply for units on a non-repatriation basis,
payments shall be made by cheques/demand drafts drawn out of NRO (Non-Resident Ordinary)
accounts.
Payment Procedure - FIIs: FIIs may pay their subscription amounts by direct remittance from
abroad or out of their special Non-Resident Rupee Accounts maintained with a designated bank
branch in India or as may be permitted under Law. All cheques/drafts should be payable in Mumbai.
Applications by FIIs should be submitted only to the NFO Collection Centre in Mumbai.
All cheques and bank drafts must be drawn in favour of “Principal SMART Equity Fund” and crossed
A/c. Payee only.
Payment Procedure - General
• The Asset Management Company will not accept cash / stockinvests / money order/postal
order/ credit card / post dated account-to- account transfer instructions / post dated cheques
for subscriptions.
• Bank charges for outstation demand drafts will be debited to the AMC and will be limited to
those stipulated by the Indian Banks Association. The Mutual Fund will not entertain any request
for refund of demand draft charges.
• In case an applicant is located in a place where there is no designated NFO Collection Centre,
the completed application form with a Bank Draft/Pay Order payable at such NFO Collection
Centre for the investment amount (net of Demand Draft charges) may be forwarded to the
nearest designated NFO Collection Centre. Please note that Outstation Demand Draft that are
not payable at par at the concerning NFO Collection Centre where the application is submitted,
will not be accepted.
Application Acceptance Schedule during the NFO
The New Fund Offer Applications(Non SIP) and Applications for Systematic Investment Plan – through
Auto Debit (SIP) shall be accepted only at the designated NFO collection centres as mentioned on
the last page, as per the following schedule:
Axis Bank Locations Non SIP – December 10, 2010 – upto 3.00 p.m.
Kotak Bank Locations SIP - December 3, 2010 – upto 3.00 p.m.
IDBI Bank Locations Non SIP – December 6, 2010 – upto 3.00 p.m.
The Applications should be submitted only at the designated NFO Collections Centres as per the
schedule stated hereabove, else the same shall be liable for rejection and AMC / Principal Mutual
Fund / Trustee / NFO Collections centre shall not be liable / responsible for the losses, if any.
(B) APPLICATION DETAILS
1. Existing Unitholders: In case of Applicant(s) who already have a Folio in Principal Mutual Fund,
they can provide their folio number & first holder name in Section 1 and proceed to Section 6
of the Form. The details of such applicant(s) including details of bank account, sequence &
mode of holding, address and nomination, as registered in the existing Folio number would
apply to this investment and the said registered details would prevail over any conflicting
information that may be furnished in this form. First Unitholders' name should be as per details
in the existing folio number, else it would be liable for rejection. Where mandatory details for
eg: PAN/KYC documents, local address in case of FII/NRI/PIO has not been provided/furnished
earlier the same be provided alongwith this application form. Any changes in details registered
with us need to be done vide a separate application request.
2 If the broker name & code is left blank, the application shall be treated as direct.
3 Unit holders providing the common account number where the unit holders has / have not
provided the documents as required mandatorily, such documents should then be provided
along with this Application Form.
4 Please write Application serial number, Name and PAN on the reverse of the cheque/
demand draft.
5 The applicants name and address including PIN Code number must be given in full (post box
number alone is not sufficient).
6 In case the investor is a NRI/FII, it is mandatory to provide overseas address in addition to local
address. However, all correspondence shall be at the local address.
7 If the account has more than one (upto three) Unitholder, the account will be registered either
as ‘joint’ or ‘either/anyone or survivor’ basis, as specified. If nothing is specified the default
mode of holding will be ‘joint’.
8 It is expressly understood that the investor/Unitholder has the express authority from the
relevant constitution to invest in units of the Fund and the AMC/Trustee/Fund would not be
responsible if the investment is ultravires the relevant constitution.
9 All communications and payments will be made to the first applicant or to the Karta in case of
HUF (Where the HUF is the first applicant).
10 Signatures should be in English or in any Indian language as specified in the Eighth Schedule of
the Constitution of India. Thumb impressions must be attested by a Magistrate/Notary Public
under his/her official seal. In case of HUF, the Karta should sign on behalf of the HUF. In case
of Partnership firms, the authorised Partner will sign on behalf of the firm. Similarly, for the
Association of Persons (AOP), the application must be signed by the Authorised Signatory.
11 Applications on behalf of minors should be signed by their guardian.
12 In case of an application under a Power of Attorney or by a limited company, body corporate,
registered society, Trust or partnership, the relevant power of attorney or the relevant resolution
of authority to make the application or the Trust Deed or Partnership Deed as the case may be,
or duly certified copy thereof, alongwith a certified copy of the Memorandum and Articles of
Association and/or bye-laws should be submitted along with the Application Form.
13 For any application of switch-in from any other schemes of Principal Mutual Fund into Principal
SMART Equity Fund, received on any date during the NFO, the application will be deemed to
have been received on the last date of the NFO and will be processed accordingly.
(C) BANK DETAILS
This requirement is mandatory and applications without complete bank details are liable to be
rejected. The Mutual Fund/Asset Management Company will not be responsible for any loss arising
out of fraudulent encashment of cheques and delay/loss in transit.
(I) Third Party Payments:
SEBI constituted Committee on "Operational Risk Issues related to Investor Service processes in
Mutual Funds", has given recommendations on select service processes which are not standard
across the industry, are ambiguous or are high risk due to higher possibility of errors or frauds. AMFI
has been working on implementation plan on various recommendations of the committee and in
the meantime AMFI has been advised by SEBI to take immediate steps to implement recommendations
of the Committee regarding Third-Party Cheques with a view to enhance compliance with AML/KYC
requirements as well as to mitigate the risk associated with such transactions.
Accordingly AMFI vide its Best Practice Guidelines Circular No.16/135/BP/10-11, dated August 16,
2010 has suggested a detailed implementation process stipulating the following:-
Asset management Companies (AMCs) should not accept subscriptions with Third-Party payments
except in the following exceptional situations:
• Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of
natural love and affection or as gift for a value not exceeding ` 50,000/- (each regular purchase
or per SIP installment)
• Payment by Employer on behalf of employee under Systematic Investment Plans through Payroll
deductions.
• Custodian on behalf of an FII or a client.
When payment is made through instruments issued from an account other than that of the beneficiary
investor, the same is referred to as Third-Party payment. It is clarified that in case of payments
from a joint bank account, the first holder of the mutual fund folio should be one of the joint
holders of the bank account from which payment is made
In case of exceptional situations as above, AMFI has directed AMCs to have appropriate and adequate
controls in place to carry out verification as required under the Prevention of Money Laundering Act
(PMLA), which would, inter alia, include:
a) Determining the identity of the Investor and the person making payment i.e. mandatory KYC
for Investor and the person making the payment.
b) Obtaining necessary declaration from the Investor and the person making the payment.
Declaration by the person making the payment should give details of the bank account from
which the payment is made and the relationship with the beneficiary.
c) Verifying the source of funds to ensure that funds have come from the drawer's account only.
Further as advised by AMFI:
a) An investor at the time of his/her purchase must provide the details of his pay-in bank account
(i.e. account from which a subscription payment is made) and his pay-out bank account (i.e.
account into which redemption / dividend proceeds are to be paid). In case an investor has
multiple accounts, he should register them with the AMC (refer section here below on "Multiple
Bank Accounts").
b) Where a subscription is preferred vide Pay Order, Demand Draft, Banker's cheque and the like,
a Certificate from the Issuing banker must accompany the purchase application, stating the
Account holder's name and the Account number which has been debited for issue of the instrument.
7
 c) A pre-funded instrument issued by the Bank against Cash shall not be accepted for investments
of ` 50,000/- or more. This also should be accompanied by a certificate from the banker giving
name, address and PAN (if available) of the person who has requested for the demand draft.
d) If payment is made by RTGS, NEFT, ECS, bank transfer, etc., a copy of the instruction to the
bank stating the account number debited must accompany the purchase application.
e) Where it is found that the payment is not made from a registered bank account or from an
account not belonging to the first named unit holder, the AMC/R&TA shall be liable to reject
the transaction with due intimation to the investor.
For Declaration format contact any of our Investor Service Centre or visit our website
www.principalindia.com
(II) Multiple Bank Accounts:
AMFI vide its afore referred Circular of August 16, 2010 has directed Mutual Funds to put in place
strong processes by November 15, 2010 to ensure that Third-Party payment instruments are not
used for mutual fund subscriptions. Further, Mutual Funds have also been directed to provide a
facility to the investors for registration of multiple bank accounts where they are one of the
holders and from where they expect to make payment for mutual fund subscription.
Pursuant to the above, AMFI vide its Best Practice Guidelines Circular No.17/2010-11, dated October
22, 2010, has provided that investors can register Multiple Bank Accounts with the Mutual Fund - up
to a maximum of 5 Bank Accounts in case of Individual and HUF investor and 10 Bank Accounts in
case of Non-Individual investor. Such facility can be availed by submitting necessary documents
along with the Multiple Bank Accounts Registration Form available at our Investor Service Centre
and our Website www.principalindia.com. Subsequent to which the Investor can select any of the
registered bank accounts for pay-ins for subscriptions and pay-out for redemption / dividend
proceeds. For Application Form and details, please refer www.principalindia.com and Statement
of Additional Information.This facility can be availed only during continuous offer on an ongoing
basis.
• E-mail Communication: Account Statements / Newsletters / Annual Reports / Other statutory
information (as may be permitted under SEBI (Mutual Funds) Regulations, 1996) can be sent to
each Unit holder by courier / post / e-mail.
Unit holders who have opted to receive these documents by e-mail will be required to download
and print the documents after receiving e-mail from the Mutual Fund. Should the Unit holder
experience any difficulty in accessing the electronically delivered documents, the Unit holder
shall promptly advise the Mutual Fund to enable the Mutual Fund to deliver such document
through alternative means. It is deemed that the Unit holder is aware of all security risks
including possible third party interception of the documents and contents of the documents
becoming known to third parties.
• ECS/NEFT: Investors who have opted for the ECS/NEFT facility of RBI for dividend payment
will receive a direct credit of the amount to them in their notified account whenever the
payment is made through ECS/NEFT. It should be noted that while the Mutual Fund will make
all efforts, there is no commitment that this facility will be made available to all
desirous Investors. Applicants in cities not covered under ECS/NEFT facility will receive dividend
payments by cheques or demand drafts and the same will be mailed to the Unit holders.
Please note that currently the ECS/NEFT facility is available only in respect of dividend
payments and not in the case of Redemption of Units. In case an investor has been covered
under Direct Credit facility with select banks then dividend payment through ECS/NEFT shall
not be effected.
(D) PAN & KYC DETAILS
I. PAN Details: As per SEBI directive, the requirement for submitting PAN details for all investments
of Mutual Funds is mandatory for all investors [including Non-Resident Indians] irrespective of
the amount of transaction involved. Where the person making an application is minor and who
does not have any income chargeable to income-tax, he shall quote the PAN of his/her father
or mother or guardian, as the case may be.
As directed by SEBI, on submission of sufficient documentary evidence, submission of PAN shall
not be insisted in case of Central Government, State Government and the officials appointed
by the Courts e.g. official liquidator, court receiver etc. (under the category of Government)
while investing in Mutual Funds. The exemption from mandatory PAN requirement will apply to
transactions undertaken on behalf of Central and State Government and not to the transactions
of the employees of Central and State Government in their personal capacity.
All applications without PAN proof and KYC requirements, are liable to be rejected.
II. Know Your Customer Acknowledgement Letter (KYC letter): Following listed category of
Investors should note that in line with the guidelines issued by AMFI, it is mandatory for them
to provide a copy of "KYC" Acknowledgement letter issued by CDSL Ventures Limited (CVL) for
all investment transactions: 1. All non-individual investors such as Companies, Body Corporates,
Association of Persons, Banks, Financial Institutions, Funds, Trusts, Societies, Hindu Undivided
Family (HUF), Partnership Firms, Limited Liability Partnerships (LLPs), Foreign Institutional
Investors (FIIs), etc.; 2. Non Resident Indians (NRIs) [including Persons of Indian Origin (PIOs)];
3. Investors (individuals and non-individuals) investing through the Channel Distributors route
[Channel Distributors are those distributors who have an arrangement with AMC, pursuant to
which they submit the mutual fund transactions details (viz. commercial / non-commercial
transactions other requests etc.) of their clients electronically to AMC]. The above category of
investors for the purpose of KYC compliance shall include (i) their constituted Power of Attorney
(PoA) holder, in case of investments through a PoA (both issuer of PoA & POA holder must
attach KYC letter at time of application); and (ii) each of the applicants, in case of application
in joint names. KYC Acknowledgement shall continue to be mandatory for Resident Individual
Investors (including Minors), investing through other than Channel Distributors for transaction
of ` 50,000/- and above. The KYC letter is one time and unique and can be used for transacting
8
across the Mutual Funds.
(E) INSTRUCTIONS FOR COMPLETING THE SIP AUTO DEBIT FORM:
1. In accordance with SEBI requirements. SIP Application Form and date of initial Cheque should
be same.
2. SIP Applications will be accepted on any working day of the month: Accordingly the units will
be allotted on the date of receipt of valid SIP Application along with a SIP investment cheque.
3. Thereafter the date of subsequent SIP installment shall be 1st, 5th, 15th or 25th of a particular
month (“specified date for SIP investments”) after completing a minimum time gap of 30 days
from the date of the first SIP investment cheque. The subsequent SIP installment date has to
be selected by the investor OR will be taken, the nearest date amongst the Specified Date
subject to receipt of the SIP application.
4. Existing Investors need to provide their folio number on SIP application form and need not fill
up the NFO Application Form.
5. In case of Applicant(s) who already have a Folio in Principal Mutual Fund, they can provide
their folio number & First Unitholder name in Section 1 and proceed to Section 3. The details
of such applicant(s), including details fo bank account, sequence & mode of holding, address
and nomination as registered in the existing Folio Number would apply to this Investment and
the said registered details would prevail over any conflicting information that may be furnished
in this form. First Unitholders' name should be as per details in the existing folio number,
else it would be liable for rejection. Where mandatory details for eg: PAN/KYC documents,
Bank details has not been provided/furnished earlier the same be provided alongwith this
application form. Any changes in details registered with us need to be done vide a separate
application request.
6. New Investors who wish to enroll for SIP through Auto Debit should fill the form specifically for
the same in addition to the Common Application Form. Investor has to submit one initial
cheque and a cancelled cheque.
7. SIP Auto Debit is available only on 1st, 5th, 15th or 25th of a month. In case these days are
non-business days for the scheme, then SIP will be processed on the next business day.
8. Investors opting for SIP investment can subscribe to this facility subject to the condition that
each of the SIP installments including the initial purchase should be of the same amount.
9. In case the Auto Debit does not take effect for three consecutive times then the SIP would
be liable for cancellation.
10. SIP enrolment will be discontinued by Principal Pnb Asset Management Company Pvt. Ltd.
(AMC) in case [a] the SIP installment is not honored consecutively for three SIP installments
[b] the Bank account [for ECS (Debit Clearing) and / or Direct Debit] is closed and the request
for change in bank account is not submitted by the concerned unit holder at least 15 working
days before the due date of next SIP installment. Further, in such cases the balance cheques,
if any, will be returned to the unit holder.
11. Initial cheque should participate in local MICR clearing or payable at par. If investor has subscribed
for SIP from outstation, then initial DD has to be payable at nearest NFO Collection Centre.
12. Investors will not hold AMC, Principal Mutual Fund, its registrars and other service provides
responsible if the transaction is delayed or not effected or the investor bank account is debited
in advance or after the specific SIP date.
13. AMC, Principal Mutual Fund, its registrars and other service providers shall not be responsible and
liable for any damages/compensation for any loss, damage, etc. incurred by the investor using
ECS facility. The investor assumes the entire risk of using this facility and takes full responsibility.
14. AMC reserves the right to reject any application without assigning any reason thereof.
15. Please refer to the Key Information Memorandum, Scheme Information Document and Statement
of Additional Information for Applicable NAV, Risk Factors, Load and other information on the
Scheme / Plan before investing.
16. As per SEBI directive, the requirement for submitting PAN details for all investments of Mutual
Funds is mandatory for all investors [including Non-Resident Indians] irrespective of the amount
of transaction involved. Where the person making an application is minor and who does not
have any income chargeable to income-tax, he shall quote the PAN of his/her father or mother
or guardian, as the case may be.
I. Micro SIP: Pursuant to SEBI’s communication to AMFI vide its letter dated June 19, 2009; AMFI
has issued guidelines for uniform implementation of the said SEBI letter. In accordance to the
same Systematic Investment Plans (SIP) up to ` 50,000/- per year per investor (‘Micro SIP’) shall
be exempt from requirement of PAN. However attested photo-copy of other photo identification
documents like Voter I.D. Card, Government/Defence Card, Card of reputed Employer, Driving
License, Passport should be submitted by the investors (for all joint holders) along with applications
as proof of identification in lieu of PAN. Such document(s) must be current and valid and the
photo copy of the same should be self attested by the investor(s)/attested by the ARN holder
mentioning the ARN number.
This exemption will be applicable ONLY to investments by individuals (including NRIs but not
PIOs), Minors and Sole proprietary firms. HUFs and other categories will not be eligible for Micro
SIPs.
17. Subject to 16 above, all applications without PAN details AND KYC requirements [as applicable.
For details refer instruction D(II)], are liable to be rejected.
18. a) If you have not indicated any of your SIP preferences in the Common Application Form &
this Form, the same would be assumed to be as indicated as follows :
SIP Auto-Debit Period Six Months
SIP Date Cheque Date or next nearest SIP Date (commencing
30 days after the first SIP investment date)
SIP Frequency Monthly
b) If the SIP details indicated in this form materially vary from the SIP Details indicated in
the ECS, the SIP application is liable to be rejected.
19. Principal Mutual Fund reserves the right not to re-present any mandate for SIP Auto Debit
facility if the registration could not be effected in time for reasons beyond its / their control.
20. Change of Bank details : Investor has to fill fresh ECS / Direct Debit Form and has to submit the
same with new bank’s cancelled cheque at least 15 working days prior to next SIP cycle.
21. Cancellation of SIP : Investor has to submit the cancellation request at least 15 working days
prior to next SIP date.
22. Additional SIP : If an investor wants to continue with the existing folio, then the investor has to
submit a duly filled and signed SIP form, alongwith the first cheque (if investment is in the new
scheme) and one cancelled cheque.
23. AMC reserves the right to introduce / modify the frequency for SIP
(F) INSTRUCTION FOR ASBA INVESTORS
• Application Supported by Blocked Amount is a facility by which an application can be made for
subscribing to New Fund Offer, along with an authorisation to SCSB to block the application
money in a bank account.
• SCSB means Self Certified Syndicate Bank registered with the SEBI, which offers the facility of
ASBA. The list of SCSBs for accepting ASBA forms is displayed on the websites of SEBI, BSE and
NSE i.e www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively.
• Eligible applicants for ASBA maintaining their account in any of the banks as displayed on the
websites of SEBI, BSE and NSE may use ASBA facility subject to fulfilling all the terms and
conditions stipulated in this regard.
• Please refer back cover page for the list of these SCSBs, as currently available on SEBI website.
These Banks are deemed to have entered into an agreement with the Mutual Fund and are
required to offer the ASBA facility to all its account holders for all issues to which ASBA process
is applicable.
• The investor is required to submit a copy of the acknowledgment receipt of the ASBA Form as
submitted to the SCSB along with the NFO application form to Principal Mutual Fund.
• Investor to note that sufficient balance is there in the account mentioned in the ASBA form;
else the application shall be rejected.
• If the details provided in the ASBA form is incorrect or incomplete or not provided, the
application shall be liable to be rejected and Principal Mutual Fund or SCSB shall not be
liable for losses, if any, to the applicant.

Instruction for Filling Nomination Form:

(1) The nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, Karta of
Hindu Undivided Family, holder of Power of Attorney cannot nominate. If the units are held jointly, all joint holders will sign the nomination form. If there are more than one joint holder additional
forms may be used for signatures of the holders of units and witnesses. (2) A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided
by the unit holder. Nomination can also be in favour of the Central Government, State Government, Local authority any person designated by virtue of his office or a religious or charitable trust. (3)
The Nominee shall not be a trust other than religious/charitable trust, society, body corporate, partnership firm, Karta of Hindu Undivided Family or a Power of Attorney holder. A non-resident Indian
can be a Nominee subject to the exchange controls in force, from time to time. (4) Nomination in respect of the units stands rescinded upon the transfer of units. (5) Transfer of units in favour of a
Nominee shall be valid discharge by the AMC against the legal heir. (6) The cancellation of nomination can be made only by those individuals who hold units on their own behalf singly or jointly and who
made the original nomination. (7) On cancellation of the nomination, the nomination shall stand rescinded and the Asset Management Company shall not be under any obligation to transfer the units
in favour of the Nominee.

CHECKLIST Documents Companies Societies Partnership Investments Trusts NRI FIIs Individual
Please ensure that: Firms through POA
J All relevant particulars are filled in / ticked in the form Resolution /     
• Full name of each holder Authorisation to invest
• Full Address N Resident Individual - Indian address or N NRI / FII - Foreign address & Local Address List of Authorised      
• Bank mandate • PAN details & Proof of PAN Signatories with
• Scheme / Option details • Payment details Specimen signature(s)
• Mode of holding • Legal Status Memorandum & 
J Effective January 1, 2008: Articles of Association

PAN details mandatory for all investments as indicated in D(1). Trust Deed 
J Your investment is not less than the minimum investment amount. Bye-laws 
J Your application is completed and signed by all applicants. Partnership Deed 
J KYC acknowledgement letter is enclosed alongwith applications*. Overseas Auditorsí 
J Cheques are drawn in favour of ‘Principal SMART Equity Fund’ and crossed A/c. Payee only, dated Certificate
and signed. Notarised Power of 
J On the reverse of each cheque submitted write the First Applicant’s name, PAN and the Application Attorney
Form number. Bank confirmation of 
Accompanying documents Non-Resident Account
Please submit the following documents with your application (where applicable). Type / FIRC
All documents should be true copies certified by a director / Trustee / Company Secretary / Copy of PAN Card        
Authorised Signatory. ® (Except for Micro SIP)
* For Resident Individual Investors (including Minors), investing through other than Channel Distributors KYC acknowledgement        *
KYC is mandatory for investments of ` 50,000/- and above. letter, as applicable

9
Applications shall be accepted at the following locations only during the NFO as per details provided against each Collection Centre
COLLECTION CENTRES OF AXIS BANK [SIP Applications upto December 3, 2010 and Non SIP Applications Upto December 10, 2010]
• Agra: Shop No. 1, 3 To 16, Block No 51, Anupam Plaza II, Sanjay Place, Agra 282 002, Uttar Pradesh • Ahmedabad: Trishul, Opp. Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad
380 006, Gujarat • Amritsar: 29, Kennedy Avenue, Court Road, Amritsar 143001, Punjab • Bangalore: No. 9, M. G. Road,Block A,Bangalore 560001 • Baroda: Vardhaman Complex, Opp. G.E.B.,
Near Pizza Hut, Race Course Circle (North), Vadodara 390 007, Gujarat • Chandigarh: SCO 343-344, Sector 35-B,Chandigarh 160 022 • Chennai: 82, Dr. Radhakrishnan Salai, Mylapore,
Chennai 600 004 • Cochin (Kochi): 41/419, Ground Floor, Chicago Plaza, Rajaji Road, Ernakulam, Kochi - 682 035, Kerala • Coimbatore: Vigneswar Cresta, No.1095, Avinashi Road,
Pappanaickenpalayyam, Coimbatore - 641 037, Tamil Nadu • Dehradun: Shri Ram Arcade, 74(New No.250/466), Rajpur Road, Dehradun 248001 • Guwahati: Ground Floor, Chibber House, G.S.
Road, Dispur, Guwahati 781 005, Assam • Hyderabad: 6-3-879/B, G. Pulla Reddy Bldg., First Floor, Begumpet Road, Hyderabad 500 016 • Indore: "Kamal Palace", 1, Yeshwant Colony,Yeshwant
Niwas Road,Indore - 452 003 • Jaipur: O-15, Green House,Ashok Marg, C-Scheme,Jaipur 302 001, Rajasthan • Jamshedpur: Voltas House, Near Ram Mandir,Bistupur, Jamshedpur 831 001
• Kanpur: Ground & First Floor, 16/104-A, Civil Lines, Kanpur, Uttar Pradesh 208 001 • Kolkatta: Ground & First Floors, 7, Shakespeare Sarani, Kolkata 700 071 • Lucknow: Lucknow, 25-B,
Ashok Marg, Sikander Bagh Chauraha,Lucknow 226 001 • Ludhiana: Lower Ground Floor, Shop No.AG-01, 02, 03, 3 A, 04, 05, 05-A, 06, 07, 08, 09, 10, 11. Unit No. 1 & 2, The Boulevard,
Plot No.105, Mall Road, Ludhiana-141 001 • Mangalore: Essel Towers, Bunts Hostel Circle, Mangalore - 575 003 • Mumbai: Universal Insurance Bldg.,Ground Floor, Sir P. M. Road, Fort,
Mumbai 400 001 • Nagpur: M. G. House, Rabindranath Tagore Road, Besides Board Office,Civil Lines, Nagpur 440 001, Maharashtra • Nasik: Mazda Towers, Tryambak Naka, F.P. No.183,
C.T.S. No.620.9, GPO Road, Nashik 422001, Maharashtra • New Delhi: "Statesman House",148, Barakhamba Road, New Delhi 110 001 • Panipat: 515-515B, Ward No/ 8, ,Gaylord Hotel
Building,G/T/ Road, Panipat 132 103, Haryana • Panjim: Sidarth Bandodkar Bhavan, P. Shirgaonkar Road, Panaji, Goa 403 001 • Patna: Lok Nayak Jay Prakash Bhawan, Dak Bungalow Crossing,
Patna 800 001, Bihar • Pune: Sterling Plaza, Plot No.1262/B,Jangli Maharaj Road,Near Deccan Gymkhana, Pune 411004 • Rajkot: "Titan", Near K K V Circle, Kalawad Road, Rajkot 360005
• Surat: Digvijay Towers,Opp. St. Xavier'S School,Ghod Dod Road, Surat - 395 001.

COLLECTION CENTRES OF KOTAK MAHINDRA BANK [SIP Applications upto December 3, 2010 and Non SIP Applications Upto December 10, 2010]
• Agra: Shriram HospitalM.G.Road, Agra-282 003 • Ahmedabad : Ground Floor,Chandan house, Opp. Abhijeet III,Near Mithakali Six Roads,Navrangpura, Ahmedabad 380006
• Bangalore: 10/7 , Umiya Land MarkNext to Chancery HotelLavelle Road Bangalore 560001• Baroda: Panorama Building, R.C. Dutt Road,Alkapuri,Vadodara 390015 • Bhopal: 214, Bhagwan
Complex,Zone 1 , M P Nagar, Bhopal, Bhopal, 462016 • Chandigarh: SCO 153-154-155Madhya MargSector 9 -C, Chandigarh 160009 • Chennai : Capitale, Ground Floor, 555, Anna Salai,Chennai,
Chennai 600018 • Cochin: Ground Floor,Kumarapillai Estate, M G Road Cochin, 682031• Coimbatore: 727, Avinashi RoadSkanda squareCoimbatoreCoimbatore 641018 • Guwahati: 4th Floor,
Ganapati EnclaveG S Road, UluvariOpp. Bura Service StationGuwahati 781007• Hyderabad: Pavani Jewel Tower, Ground Floor, Somajiguda, Hyderabad 500089 • Indore: 580, M.G.Road,
Indore 452001 • Jaipur: 57, Krishna Tower , Sardar Patel Marg, C-Scheme, Jaipur 302001 • Jamshedpur: Gayatri Enclave, K. Road, S. Town Bistupur, Jamshedpur 831001 • Kolkatta: Apeejay
House15,Parkstreet ,Kolkatta 700016 • Ludhiana: SCO 120, Ground Floor, Feroze Gandhi Market,Ludhiana 141001• Madurai: 1-AWest Perumal Maistry StreetMadurai Madurai 625001
• Mehsana: Rajendra Estate , Opp Gayatri Temple,State Highway , Mehsana 384002 • Mumbai: 5 C/ II, Mittal Court 224, Nariman Point, Mumbai-400001 • Nagpur: Ground Floor, 345 Shree
Mohini Complex, Kingsway, Nagpur 440001 • New Delhi: Ground Floor, Hotel Park Plaza, Opp. Azad Maidan, Panjim 403001 • Panjim: Ground Floor, Hotel Park PlazaOpp Azad Maidan,
Panjim 403001 • Patna: Shop No 3,4,5Ahmad Husain Complex, Exhibition Road , Gandhi Maidan, Patna 800001 • Pune: Bakre AvenueFP NO 226/3, Bhandarkar Roadm, Pune 411004 • Rajkot:
Nath Complex, Ground FloorNear Race CourseDr. Yagnik Road, Rajkot 360007 • Salem: Plot No 12 , S no 98Bharathi StreetAlagapuram, Salem 636001 • Surat: Ground Floor, Kotak House, KG,
PointGhod Dod Road, Surat 395007 • Trichy: B-17,Aishwaryam BuildingSasthiri Road, Thillai Nagar,Trichy 620017 • Trivandrum: S I Properties, Ground Floor, White HavenVellayambalam,
Trivandrum 695010 • Vijayawada: 40-1-48/1 , M.G.Road Labbipet , Vijayawada 520010

COLLECTION CENTRES OF IDBI BANK [Non SIP Applications Upto December 6, 2010]
• Allahabad: CMS Desk, Jeevan Prakash Building, 172 A/40, M.G.Marg, Civil Lines, Allahabad - 211 001 • Ajmer: Shankar Palace Opp. City Power House Jaipur Road, Ajmer - 305001
• Aligarh: CMS Desk, Liberty Plaza, Kishanpur Tirala, Ramghat Road, Aligarh - 202001 • Allahabad: CMS Desk, Jeevan Prakash Building, 172 A/40, M.G.Marg, Civil Lines, Allahabad- 211 001
• Anand : CMS Desk, Jeevan Prakash Building, 172 A/40, M.G. Marg, Civil Lines, Allahabad Uttar Pradesh-211 001 • Asansol : CMS Desk, Shree Apartment, Burnpur Road, Opp. Sarat Mancha,
Asansol - 713304 • Aurangabad: Raghbir Chambers, Vidya Nagar Jalna Road Aurangabad - 431003 • Bankura : CMS Desk, Bankura-Raghunathpore Road, Beside Mashjid, Machantala,
Bankura - 722101 • Bareilly: CMS Desk, 146, Civil Lines, Circuit House, Chouraha, Bareilly Uttar Pradesh - 243001 • Belgaum: 3493/1B College Road Belgaum • Bharuch: CMS Desk, Shree
Mangalam Complex, B/h Aditya Complex, Kasak Circle, Bharuch - 392001 • Bhatinda: CMS Desk, F-77, Teshwar Complex, Hazi Rattan chowk, Civil lines, Bathinda -151001 • Bhavnagar:
Radheshyam Complex, Waghawadi Road, Bhavnagar - 364001 • Bhilai: New Era, 19 Priyadarshni Parisar, Nehru Nagar Square, Bhilai - 490020 • Bhubaneshwar: IDBI House, Janpath, Unit IX,
Bhubaneshwar - 751022 • Bikaner: Modern Market Opp DRM Office Near Tulsi Circle Bikaner • Bokaro: CMS Desk, A-1/2, City Centre, Sector - 4, Bokaro, Jharkhand- 827004 • Burdwan: CMS
Desk, M V Apartment, 35, GT Road, Parbihata (Near SBI), Burdwan-713101 • Calicut: City Plaza YMCA Cross Road, Kozhikode • Cuttack: CMS Desk, Ground Floor, Kavita Bhawan, College Road,
College Square, Cuttack- 753 003 • Dhanbad: Kylark Complex Bank More Dhanbad • Durgapur: CMS Desk, Ruma Sweets Building, Nachan Road, Benachity,Durgapur- 713213 • Erode: 66,
Aanoor Amman Complex Sathy Main Road Erode • Faridabad: RPU 65, M.M. Road, New Delhi-110 055 • Ghaziabad: RPU 65 M.M. Road, New Delhi-110 055 • Gorakhpur: CMS Desk 7, Park
Road,Gorakhpur- 273001 • Gurgaon: RPU - North, 11 B / 8 Basement, Tewari House, Opp. Metro Pillar 136, Pusa Road, Rajendar Palace, New Delhi-110055 • Gwalior: Chamber Bhavan SDM
Road, Gwalior - 474009 • Hubli: Giriraj Annexe , Traveller's Bunglow Road, Hubli - 580029 • Jabalpur: Shukla Bhawan 1415,Wright Town Jabalpur - 482002 • Jalandhar: Bombay Palace, 136,
Jawahar Nagar, Cool Road, Jalandhar-144 001 • Jalgaon: Khandesh Mills Complex, Nehru Chowk, P.B.No 7, Jalgaon - 425001 • Jammu: CMS Desk, Office Block No O.B.26, Grid Bhavan,
1st Floor, Rail Head Complex, Jammu-180012 • Jamnagar: CMS Desk, Gr Floor, Khandelwal Complex, 12 Patel Colony, P.N. Marg, Jamnagar - 361001 • Jodhpur: Dhanalaxmi Towers,
1st Chopsani Road, Jodhpur - 342003 • Junagadh: CMS Desk, Mary Gold-2 Complex, Opp Bahhaudin College, College Road, Junagadh-362001 • Kolhapur: S-3 TO 7, Royal Heritage Bldg.,
Opp.Basant Bahar Theatre, Assembly Road, Kolhapur • Kota: CMS Desk, Plot No 381-2, Shopping Center, Ghorewala Chauraha, Rawatbhata Road, Kota-324007 • Kottayam: Thekkekarayan
Towers Muttambalam PostKanjikuzhy Kottayam - 686004 • Malda: CMS Desk, K.G. Apartment, 48/63 K. J. Sanyal Road, Opp Kanya Shikshalaya Girls School, Malda - 732101 • Meerut: 367,
Neel Kamal Building, Eves Crossing, Shivaji Road, Meerut- 250 001 • Moradabad: Ekta Complex Near Company Bagh, Civil Lines, Moradabad • Muzaffarpur: CMS Desk, Choti Saraiyaganj,
Muzaffarpur - 842001 • Mysore: CMS Desk, MIG 11, Anand Arcade, 18th Main Road, Kevempu Nagar, V. M Double Road, Saraswathipuram, Mysore - 570023 • Nadiad: CMS Desk,
Shop no.1&2, Ground Floor, Iskon Arcade, College Road, Nadiad - 387001 • Navsari: HareKrishna Complex, Chimnabai Road, Near Vasant Talkies, Navsari - 396445 • Patiala: 10,Chotti Baradari,
The Mall, Patiala - 147001 • Pondichery: CMS Desk, No 86, S.V.Patel Salai, Puducherry (Pondicherry) • Raipur: Dev Towers, Plot No 3/22, Old Civil lines, New Pt. Bhagwati Charan Shukla Ward,
Fingeshwar Bada, Beside Holy Hearts High School, Raipur - 492001 • Ranchi: Arjan Place, 5, Main Road, Ranchi - 834001 • Rourkela: CMS Desk, 1st Floor, DUA Complex, Panposh Road,
Rourkela-769 004 • Shillong: Sapphire House, Don Bosco Road Laitumkhrah, P.B.No 31,Shillong Meghalaya • Shimla: CMS Desk, Jeevan Jyoti Building, Lala Lajpatrai Chowk, The Mall,
Shimla-171 001 • Siliguri: CMS Desk, Nanak Complex, 1st Floor, Sevoke Road,Siliguri-734 001 • Tirunelveli: CMS Desk, City Shopping Centre, Trivandrum Bye Pass Road, Kokurakulam,
Near Collectorate, Tirunelveli - 627006 • Udaipur: Mumal Towers, 16 Saheli Marg, Udaipur - 313001 • Ujjain: Hotel Ashray 77, Devas Road Ujjain - 456010 • Valsad: CMS Desk, C.S. No 4000
& 4001, Shop no.2-5 Megharachana Tower, Shila Park Complex, Tithal Road, Valsad - 396001 • Vapi: C-1, Advance Complex, National Highway no. 8, Near Hotel Green View, P. B 85, Vapi-396191
• Varanasi: Arihant Complex, Nagar Nigam Road,Sigra Varanasi - 221002 • Vellore: CMS Desk, No.5, 14th Cross Street, 1st Floor, Gandhi Nagar, Vellore-632 006 • Visakhapatnam: CMS Desk,
No.5, 14th Cross Street, 1st Floor, Gandhi Nagar, Vellore- 632006 • Warangal: CMS Desk, Gr. Floor, Shri Tirumala Mall Municipal, Door Nos 5-9 130, Main Road, Sikhwadi, Kishanpura,
Hanamkonda, Warangal - 506001.

List of Self Certified Syndicate Banks (SCSBs) under the ASBA process
1. Axis Bank Ltd 2. State Bank of Hyderabad 3. Corporation Bank 4. State Bank of Travencore 5. IDBI Bank Ltd. 6. State Bank of Bikaner and Jaipur 7. YES Bank Ltd. 8. Punjab National Bank
9. Deutsche Bank 10. Union Bank of India 11. HDFC Bank Ltd. 12. Bank of Baroda 13. ICICI Bank Ltd 14. Vijaya Bank 15. Bank of Maharashtra 16. State Bank of India 17. Andhra Bank 18. HSBC Ltd.
19. Kotak Mahindra Bank Ltd. 20. Bank of India 21. CITI Bank 22. IndusInd Bank 23. Allahabad Bank 24. Karur Vysya Bank Ltd. 25. The Federal Bank 26. Indian Bank 27. Central Bank of India
28. Oriental Bank of Commerce 29. Standard Chartered Bank 30. J P Morgan Chase Bank, N.A. 31. Nutan Nagarik Sahakari Bank Ltd. 32. UCO Bank 33. Canara Bank 34. United Bank of India
35. Syndicate Bank
For the complete list of controlling / designated branches of above mentioned SCSBs, please refer to the websites of SEBI, BSE and NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com

Name, Address and Website of Registrar:

Karvy Computershare Pvt. Ltd. (Unit: Principal Mutual Fund), KARVY HOUSE, 46, Avenue- 4, Street No. 1, Banjara Hills, Hyderabad-500 034. Tel.: (040) 2331 2454.
www.karvycomputershare.com

For submitting any Application Form for Principal SMART Equity Fund post closure of NFO, please refer the Scheme Information Document for details of AMC / Karvy OPTs.
For any enquiries and / or queries, investors are advised to address a suitable communication to AMC at: