Principal Mutual Fund

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Overview of Principal Mutual Fund

Principal Mutual Fund is one of the leading mutual fund in India. The investment manager to Principal Mutual Fund is Principal Pnb Asset Management Company. This mutual fund company seeks to provide a couple of innovative investment solutions for both retail and institutional investors which comply with the strategic principles of stringent risk control, process-orientation and superior research to support investment decisions.

Principal Mutual Fund manages assets for over 4 lakh customers, through the medium of 102 investor centres with over 20,000 empanelled distributors throughout India. The fund house proud itself of having a strong support from the disciplined investment team which undertakes an acceptable levels of risk with an aim to create, safeguard and grow the wealth of investors.

The mutual fund company is backed by the 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 world's premier investment managers with $572.7 billion in assets under management and offices in 18 countries throughout Asia, Australia, Europe, Latin America and North America.

The co-settlor of the Principal Mutual Fund is Punjab National Bank, one of the largest Nationalized Banks in India which facilitates the strong brand equity and distribution network throughout India. Moreover, this fund house governs a strong network of 6809 branch offices across the country.

Board of Directors for Principal Pnb Asset Management Company Private Limited

The list of board of directors are as under:

AMC Directors

  • Mr. Mukund M. Chitale (Chairman)
  • Mr. Lalit Vij (Managing Director)
  • Mr. Rustam Gagrat (Independent Director)
  • Mr. Madhukar M. Kamath (Independent Director)
  • Mr. Vimlesh Kumar (Associate Director)
  • Mr. Pedro Borda (Associate Director)

Trustee Director

  • Mr. V.S.Mathur (Chairman)
  • Mr. H. M. Singh (Independent Director)
  • Mr. Michael Pinto (Independent Director)
  • Mr. O.V. Bundellu (Independent Director)
  • Ms. Tess Downey (Associate Director)

Registrar

The registrar of Principal Pnb Asset Management Company Private Limited is Karvy Computershare Private Limited

Fund Managers

The fund managers are classified as follows:

  • Mr. Dhimant Shah (Fund Manager-Equity)
  • Mr. Rajat Jain (Fund Manager-Equity)
  • PVK Mohan (Fund Manager-Equity)
  • Ms. Bekxy Kuriakose (Fund Manager-Debt)
  • Mr. Gurvinder Singh Wasan (Fund Manager-Debt)
  • Mr. Pankaj Jain (Fund Manager-Debt)
  • Mr. Gurvinder Singh Wasan (Fund Manager-Debt)

Products offered by Principal Mutual Fund

1. Equity Funds

Equity funds are those schemes which seeks for capital growth over medium to long-term. They are appropriate for those investors which have a high risk taking appetite. Investors can allow their investments to grow or earn dividends for a longer period exceeding one year and maximum 5 years time period. These Equity Mutual Funds are open-ended schemes and can be bought and sold at any time without any lock-in period. The following equity funds are offered by Principal Mutual Fund:

  • Principal Dividend Yield Fund
  • Principal Emerging Bluechip Fund
  • Principal Smart Equity Fund
  • Principal Index Fund – Midcap
  • Principal Equity Savings Fund
  • Principal Large Cap Fund
  • Principal Growth Fund
  • Principal Index Fund – Nifty
  • Principal Arbitrage Fund

2. ELSS Funds

Equity Linked Savings scheme offer tax exemption of upto 1 lakh to investors under Section- 80C of the Income Tax Act, 1961. Identical to equity scheme, these funds are appropriate for those investors(Individual, HUF and particular investors under Income Tax Act, 1961) with a high-risk aptitude and who focus to seek capital growth over the medium to long-term. These schemes have a three-year lock in period and provide an easy method for getting tax benefits and an avenue for getting the potential upside of investing in the equity markets.There are only two ELSS Funds provided by Principal Mutual Fund:

  • Principal Personal Tax Saver Fund
  • Principal Tax Savings Fund

3. Balanced Funds

Balanced Funds provide investments in both equity and debt instruments in the proportion which is reflected in the Scheme Information document. These funds are considered by those investors who are looking for regular and moderate growth. Principal Balanced Fund is only fund which is offered by Principal Mutual Fund.

4. Hybrid Funds

Hybrid funds invest in a mixed proportion of equity and debt that requires to be rebalanced at periodic intervals. These funds aim to provide both income and capital growth with an objective to diversify risk. Monthly Income Plan is one such combination offered by Principal Mutual fund which invest the large proportion of the corpus in debt and money market securities with a medium exposure to equity. These schemes are appropriate for investors who choose to go safe and have a small exposure to the equity market. Investors should invest in such schemes for a longer run and not from the perspective of an investment instrument that yields monthly income.

5. Debt Funds

Debt funds usually invest in fixed-income instruments like Bonds, Money Market securities, Government Securities(Gilts), Corporate Debentures etc. The main emphasis of this scheme is to invest in a combination of Debt and Money Market instruments of different maturities( according to the Investment Objective) with an aim to foster regular income while maintaining a suitable balance between yield, safety and liquidity.

  • Principal Bank CD Fund
  • Principal Low Duration Fund
  • Principal Credit Opportunities Fund
  • Principal Government Securities Fund
  • Principal Dynamic Bond Fund
  • Principal Short Term Income Fund
  • Principal Debt Savings Fund
  • Principal Retail Money Manager Fund

6. Liquid Funds

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

7. Fund of Funds

Fund of funds provide the investor an opportunity to spread the risk by diversifying the investments across assets. The underlying securities for a FoF are the units of other mutual fund schemes either from the same fund or other funds of different asset management company. There are only two Fund of Funds provided by Principal Mutual Fund:

  • Principal Global Opportunities Fund
  • Principal Asset Allocation Fund of Funds

Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.

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