Established in 1879, Principal Financial Group (The Principal) is one of the world’s major financial investment management companies headquartered in Iowa. With presence in across 18 countries, the Principal offers a wide range of financial products and services to both companies and individuals including asset management, retirement and insurance.
The Principal aims to focus on small, medium-sized firms in addition to global asset management through joint venture partnerships and wholly owned companies. From equity and fixed income to real estate, the Principal provides several specialized advisory services. The Principal Financial Group also offers vision, life and dental insurance.
Principal Mutual Fund
Principal Pnb(Punjab National Bank) Asset Management Company is the investment manager to Principal Mutual Fund in India. A wide range of innovative solutions are offered to both retail and institutional investors. Principal Mutual Fund adheres to several pertinent principles such as robust risk control and research and manages assets of about 8 lakh customers, across 102 centres.
Principal Financial Group has introduced cutting-edge retirement services platform for Indian retail investors. Proactive risk management and robust financial health of the Principal Financial Group, helps Pnb Asset Management Company utilize more growth opportunities in the country.
Types of Principal Mutual Fund
- Debt/Income Schemes
- Equity Funds
- ELSS Funds
- Balanced Funds
- Hybrid Funds
- Liquid Funds
- Fund of Funds
Debt schemes typically invest in bonds, corporate debentures and government securities among others. You can invest in a range of instruments of various maturities for stable income, maintaining an optimum balance between safety, yield and liquidity.Equity Funds
Equity funds result in capital appreciation over medium to long-term and are suitable for investors with a high risk appetite. Investors can earn dividends in open-ended schemes which can be bought and sold at any time sans lock in period.ELSS Funds
In ELSS funds, investors are entitled to a tax deduction of up to 1 lakh. ELSS funds, suitable for investors with a high risk appetite, aim to generate capital appreciation over the long-term. ELSS funds have a three-year lock-in period.Balanced Funds
Offer investments in both equity and debt securities in a certain proportion. The impact of market fluctuation on the NAV is less compared to equity schemes. Funds are invested in stocks and bonds among others to achieve a balanced risk ratio.Hybrid Funds
Hybrid funds invest in both equity and debt which has to be balanced at regular intervals. Hybrid funds provide capital appreciation and income to diversify risk.Liquid Funds
Liquid Funds invest in short-term instruments such as treasury bills, commercial paper, certificates of deposit and government securities among others. Liquid funds are relatively safe and are suitable for investors looking for moderate returns.Fund of Funds
Fund of funds (FoF) offers investors room to diversify risk across assets. The underlying investments of FoF are either from the same mutual fund or other mutual fund houses.
Why choose Principal Mutual Fund?
Principal Mutual Fund (PMF) offers a wide range of benefits for investors such as the following:
- Under Principal Personal Tax Saver Funds and Principal Tax Savings Funds, which offer long term capital growth with a three year lock-in period, investors can avail of tax deduction of up to Rs 1 lakh as per section 80c of Income Tax Act, 1961.
- In addition to delivering good returns with consistent value creation, principal mutual fund offers corporate and individuals a wide range of structured options.
- Principal Mutual Fund has over 20,000 distributors across the country including financial advisors partnership firms, corporates, banks, stockbrokers and financial institutions.
- Provides value addition owing to its expertise in several areas including client education, asset accumulation and customer service among others.
- Investors can transfer their money to a target equity fund while invested in a debt or liquid fund. Consequently, you will get returns of the equity fund and ensure protection as well.
- Publishes a monthly factsheet which shows details of amount invested in each company and the rating of the company’s issuance, returns, dividends and performance ratios.