Principal Mutual Fund: All you Need to Know

by Anvi Sharma Consultant

Looking forward to investing in Principal Mutual Fund? Not sure whether this fund house would be able to generate maximum returns on your investment. Just check out the details of the company and other details which will help you out in discovering the power of your investments while investing in Principal Mutual Fund.

This fund house is one of the premier asset management company in India. Principal Pnb Asset Management Company is the investment manager to Principal Mutual Fund.

This fund house aims to offer a host of innovative investment solutions for both retail and institutional investors which work in accordance with the strategic principles of rigorous risk regulator, process-orientation and superior research to aid investment decisions.

The fund house managed assets for over 4 lakh customers under its discretion via 102 investor centres medium with over 20,000 empanelled distributors across India. This fund house boasts itself  of having a strong support from the disciplined investment team which accepts an ongoing level of risk with an objective of creating, safeguarding and growing the wealth of investors.

This mutual fund company has a strong financial support, global expertise and experience of over 135 years in asset accumulation and asset management of the parent company-The Principal Financial Group-which is one of the renowned investment managers with 572.7 billion in assets under management and offices in 18 countries throughout Asia, Australia, Europe, Latin America and North America.

Punjab National Bank is the co-settlor of the Principal Mutual Fund which is one of the largest nationalized banks in India facilitating the strong brand equity and distribution network across India. Moreover, this fund house  regulates a strong network of 6809 branch offices throughout India.

Principal Mutual Fund Schemes

Let's take a look at various Mutual Fund schemes offered by Principal Mutual Fund:

1. Equity Funds

Equity funds are those funds which allow the investments to grow or earn dividends for a longer term exceeding one year and maximum 5 years time period. These equity mutual funds are open-ended schemes which can be purchased and sold at any time without any lock-in period.

Here's a list of equity mutual funds offered by Principal Mutual Fund:

  • Principal Dividend Yield Fund

  • Principal Emerging Bluechip Fund

  • Principal Smart Equity Fund

  • Principal Arbitrage Fund

  • Principal Large Cap Fund

  • Principal Growth Fund

  • Principal Index Fund – Nifty

  • Principal Equity Savings Fund

2. ELSS Funds

Investing in Equity Linked Savings scheme offers you a tax exemption of upto ₹ 1.50 lakhs under Section-80 C of the Income Tax Act, 1961. These funds are apt for those investors (Individual, HUF and particular investors under Income Tax Act, 1961) which have a high-risk taking capacity and whose objective is to promote capital growth over the medium to long-term. These schemes provide a three-year lock-in period and offer an easy method for giving tax benefit and an opportunity for gaining the potential upside of investing in the equity markets. Principal Mutual Fund offers only two ELSS funds as follows:

  • Principal Personal Tax Saver Fund

  • Principal Tax Savings Fund

3. Balanced Funds

Balanced Funds provides you a mixed combination of both equity and debt securities in the proportion specified in the Scheme Information Document. These funds are appropriate for those investors who are constantly striving for continuous and moderate growth. Principal Balanced Fund is the only fund which is provided by Principal Mutual Fund.

4. Debt Funds

Debt funds of Principal Mutual Fund allow you to invest in fixed income instruments like Bonds, Money Market Instruments,  Government Securities(Gilts), Corporate Debentures etc. The main emphasis is to invest in a combination of Debt and money market instruments of different maturities(as per the Investment Objective). It further looks to promote the regular income while sustaining an appropriate balance between yield, safety, and liquidity. The following debt funds are offered by Principal Mutual Fund:

  • Principal Dynamic Bond Fund

  • Principal Short Term Income Fund

  • Principal Debt Savings Fund

  • Principal Money Manager Fund

  • Principal Low Duration Fund

  • Principal Credit Opportunities Fund

  • Principal Government Securities Fund

5. Liquid Funds

Liquid Funds of Principal Mutual Fund mainly invest in short-term instruments like commercial paper, certificates of deposit, treasury bills, government securities etc. These securities are also known as secured and consist of short maturity period which is suitable for those investors who wish to have moderate returns on their excessive funds. Principal Cash Management Fund is the only liquid fund which is offered by Principal Mutual Fund.

6. Fund of Funds

Invest in Fund of Funds scheme offered by Principal Mutual Fund which looks to provide the investor an opportunity to spread the risk by diversifying their investments across asset classes. The underlying instruments for a FoF are the units of other mutual fund scheme either from the same fund or other funds of the different asset management company. Principal Mutual Fund offers only two schemes in this category:

  • Principal Global Opportunities Fund

  • Principal Asset Allocation Fund of Funds

About Anvi Sharma Innovator   Consultant

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Joined APSense since, May 3rd, 2017, From Noida, India.

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