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Principal Mutual Fund

Principal Mutual Funds, often abbreviated to PMF, was previously known as IDBI PRINCIPAL Mutual Fund. However, the IDBI Group is no longer associated with the fund house. It was incorporated decades ago in 1991, but was only set up in 1994. It was initially set up as a trust and under the provisions of the Indian Trusts Act of 1882.

Principal Mutual Fund is currently one of India’s leading Mutual Fund houses. While it may not have as much Assets under Management as some of the bigger players in the market, it has managed to double its net AUM over the last 3 years. PMF has aggressively campaigned over some years and has managed to expand its footprint as well.

As of March 2019, Principal Mutual Fund India has a total sum of Rs. 7,090 Crore under its ambit. The funds major also has several regional offices spread all over the country. It is also registered with SEBI with the registration number being MF/019/94/0.

The stated reason why the main backers- Principal Financial Services Inc., USA- is firmly behind this Mutual Fund is because it intends to spread better and more efficient financial inclusivity across the country. Besides, there is much room for growth in an economy as diverse as India’s.

The Fund was a result of a Trust deed executed by the IDBI Bank in 1994. At that time, IDBI Bank was the sole settler. In 2000, the United States’ Principal Financial Services Inc. acquired a 50% stake in the Mutual Fund. In 2003, the Principal Group acquired the entire stake of the organisation via its wholly-owned subsidiary- Principal Financial Group Mauritius.

To reflect the new ownership pattern, the AMC also had a new name- Principal Asset Management Company PL. It is now the sole governing body of the entire Mutual Funds schemes that Principal Group currently has in India.

In 2004, two PSU banks were asked to get on board the Funds house. They were Vijaya Bank and the Punjab National Bank. These institutions continue to be associated with the Mutual Funds business of Principal.

In accordance with the law, some ownership patterns were changed in 2004. Currently, Principal Mauritius Private Limited has a share of 65% overall, while Punjab National Bank owns 30% of the company and Vijaya Bank owns 5%.

All three partners currently hold all rights, liabilities, titles and interest of the Mutual Funds house.

As of March 2019, Principal Mutual Fund has 67 active schemes. These are a mixture of long-term, medium-term and short-term funds, and Gilt funds, among several other types of funds. A breakdown of the active plans shows that:

  • There are 2 arbitrage funds.
  • Balanced and Global funds are also 2 each.
  • More than 3 Short Term Income Funds.
  • Principal Mutual Funds have more than 8 Ultra Short Term Funds.
  • A total of 4 Liquid Funds are currently available.

Principal Mutual Fund has two independent auditors to keep a tab on all financial operations and keep everything above board. These are the reputed Batliboi and Associates and the BSR Group. The Board of Directors has a wide gamut of professionals from a diverse range of specialities, which is a major plus point.

Principal Mutual Fund has also managed to reach out to the immense expanse of the country thanks to their primary sponsors- Karvy ComputerShare Private Limited. It has been one of the first adopters of technological breakthroughs.

The following sections detail the schemes that the MF major currently offers followed by how Groww can help you.

Top Performing Principal Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Principal Focused Multicap FundEquityVery High59.7%4star576
Principal Equity Savings FundHybridHigh28.0%4star65
Principal Large Cap FundEquityVery High6.5%4star446
Principal Emerging Bluechip FundEquityVery High67.6%3star2,730
Principal Dividend Yield FundEquityVery High56.4%3star211
Principal Growth FundEquityVery High62.9%3star757
Principal Hybrid Equity FundHybridVery High44.8%3star1,079
Principal Smart Equity FundHybridModerate18.6%3star200
Principal Small Cap FundEquityModerately High99.8%3star389
Principal Tax Savings FundEquityVery High58.2%2star539
Principal Short Term Income FundDebtModerate12.1%2star140
Principal Money Manager FundDebtLow to Moderate3.7%2star117
Principal Dynamic Bond FundDebtModerate7.8%2star28
Principal Cash Management FundDebtLow to Moderate3.2%2star165
Principal Low Duration FundDebtLow to Moderate9.9%2star70
View All Top Performing Principal Mutual Funds

Key information

Mutual fundPrincipal Mutual Fund
Asset management companyPrincipal Financial Services Inc
Set up25 November 1994
Incorporated20 November 1991
SponsorsPrincipal Financial Services Inc. Ltd.
Name of trusteesMichael PintoOP BundelluHM SinghVS MathurTess DowneyHV Singh
ChairmanMr. Mukund Chitale
MD and CEOLalit Vij
CIONeelesh Surana
Investor Service OfficerMr. Hariharan Iyer
Compliance OfficerMs Richa Parasrampuria

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How can you invest in Principal Mutual Funds?

The wide variety of Mutual Funds that the group offers superior returns on investment. You can now invest in their Large, Mid and Small Cap funds easily via Groww.

Step 1: First, log in to our website and sign in using your registered Groww username and password. In case you are not yet a member of Groww, you can sign up for a new account for free.

Step 2: Registration takes very little time and minimal documentation. You have to upload a proof of identity. Accepted documentation in this section include a Passport, ID issued by the Central or State governments, Voter ID Card, PAN, Aadhaar, or a valid driving licence.

Step 3: This step establishes your residential identification. Accepted documents in this section include any identifying papers issued by competent authorities which have your permanent address mentioned.

Step 4: Select the level of acceptable risk. Mutual Funds are always subject to fluctuating market returns, and a high level of risk ensures higher yields, while low risk translates to lower returns. You can pick the best Principal Mutual Fund online based on your appetite for risk. Selecting medium risk is often the best option in case you have any doubts over long-term sustainability.

Step 5: Choose with care the plan you wish to invest in. You have access to all the Mutual Funds from Principal via our website.

Step 6: It is the last step. If you plan on a single long-term investment and wish to contribute a lump sum, choose the “Invest One Time” option. Else, you can also choose to start an SIP or Systematic Investment Plan by clicking on the “Start SIP” option.

You have to reconcile that the yields of any MF is always dependent on the market. Volatile markets and a bullish stance from investors negate liquidity, leading to many individuals and market regulators to sell shares at cheaper rates. Conversely, a bear market will lead to widespread buyback options. Either way, Mutual Fund returns may vary considerably. Choose your risk and investment tenure appetites carefully.

Top Fund Managers

1. Mr. Rajat Jain

Mr. Jain is a senior professional in the Mutual Funds industry and has been associated with the group since its inception. He has over 3 decades of experience in Investment Banking simultaneously. Mr Jain is currently the Chief Investment Officer at Principal Mutual Fund.

Mr. Jain is a Mechanical Engineer from the National Institute of Technology and is an alumnus of the Indian Institute of Management.

He has previously worked at the highest echelons with the SBI Mutual Funds group. He has been appointed as advisor by several leading financial institutions on occasions.

Mr. Jain provides a degree of calm in a turbulent market. He leads the Portfolio strategy too, and is in on course of taking Principal Mutual Funds to greater heights.

2. Mr. Aashish Khubchandani

Mr. Khubchandani is one of India’s most promising young fund managers. Before joining the Principal Group, he occupied a senior post at Crest Finserv. Crest Finserv was also known as Tullett Prebon India earlier.

Mr Khubchandani is a qualified CFA and is one of the youngest professional fund managers to hold so high an executive post in a MF house in India.

He has also worked as a “Dealer – Fixed Income” in the past.

3. Mr. Siddarth Mohta

Mr. Mohta is a known face in the India Mutual Funds business with a sparkling career in several leading corporations in the past. He has worked with industry-leaders like ICRA, Polaris, and Adventity Solutuions Limited. He is currently an associate fund manager with Principal Mutual Funds.

Mr. Mohta is an alumnus of reputed institutions and is a Bachelor in Commerce with a Post Graduate degree in Management. He has been with Principal Mutual Fund since 2009.

4. Ms Rupali Pandit

Ms. Pandit has over 19 years of hands-on experience in various sections of risk, asset and wealth management. She holds a UG degree in Commerce and successfully completed the Intermediate CA exam.

She has worked with some leading firms in the financial segment like ABN AMRO, IL&FS, and GIC Limited as an Equity Dealer. She also functions in the Equity Dealing section at Principal Mutual Fund. She has been named one of the most influential female figures in the Indian market and has received several awards over many years. Her career spans over 19 years and she has been with the group since 2013. It is under her mentorship that the Equity Funds subdivision of the Mutual Funds business of Principal was launched. She is also a committed environmentalist.

All fund managers work closely with the board of trustees and the management. Principal Mutual Fund is growing at a rapid rate under their watchful guidance.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Principal Focused Multicap Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Focused segment. It has given a commendable 18.13% annual returns in the last three years. In the previous year, it delivered 59.7% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹100. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹300
AUM576Cr
1Y Returns59.7%

Principal Equity Savings Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Equity Savings segment. It has given a commendable 11.25% annual returns in the last three years. In the previous year, it delivered 28% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Hybrid mutual funds in India.

Min Investment Amt₹5,000
AUM65Cr
1Y Returns28.0%

Principal Large Cap Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Large Cap segment. It has given a commendable 5.9% annual returns in the last three years. In the previous year, it delivered 6.53% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹5,000
AUM446Cr
1Y Returns6.5%

Principal Emerging Bluechip Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Large & MidCap segment. It has given a commendable 15.92% annual returns in the last three years. In the previous year, it delivered 67.6% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹100. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹300
AUM2,730Cr
1Y Returns67.6%

Principal Dividend Yield Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Dividend Yield segment. It has given a commendable 14.86% annual returns in the last three years. In the previous year, it delivered 56.37% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹5,000
AUM211Cr
1Y Returns56.4%

Principal Multi Cap Growth Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Multi Cap segment. It has given a commendable 13.31% annual returns in the last three years. In the previous year, it delivered 62.89% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹100. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹300
AUM757Cr
1Y Returns62.9%

Principal Hybrid Equity Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Aggressive Hybrid segment. It has given a commendable 11.38% annual returns in the last three years. In the previous year, it delivered 44.79% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹100. It is one of most notable Hybrid mutual funds in India.

Min Investment Amt₹300
AUM1,079Cr
1Y Returns44.8%

Principal Balanced Advantage Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Dynamic Asset Allocation segment. It has given a commendable 7.81% annual returns in the last three years. In the previous year, it delivered 18.6% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Hybrid mutual funds in India.

Min Investment Amt₹5,000
AUM200Cr
1Y Returns18.6%

Principal Small Cap Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Small Cap segment. In the previous year, it delivered 99.8% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹5,000
AUM389Cr
1Y Returns99.8%

Principal Tax Savings Fund Direct

Fund Performance: This fund has consistently performed above the benchmark in ELSS segment. It has given a commendable 12.2% annual returns in the last three years. In the previous year, it delivered 58.24% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹500. It is one of most notable Equity mutual funds in India.

Min Investment Amt₹500
AUM539Cr
1Y Returns58.2%

Principal Short Term Debt Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Short Duration segment. It has given a commendable 4.9% annual returns in the last three years. In the previous year, it delivered 12.12% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹2,000. It is one of most notable Debt mutual funds in India.

Min Investment Amt₹5,000
AUM140Cr
1Y Returns12.1%

Principal Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Ultra Short Duration segment. It has given a commendable 4.08% annual returns in the last three years. In the previous year, it delivered 3.69% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹2,000. It is one of most notable Debt mutual funds in India.

Min Investment Amt₹5,000
AUM117Cr
1Y Returns3.7%

Principal Dynamic Bond Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Dynamic Bond segment. It has given a commendable 3.47% annual returns in the last three years. In the previous year, it delivered 7.81% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹2,000. It is one of most notable Debt mutual funds in India.

Min Investment Amt₹2,00,000
AUM28Cr
1Y Returns7.8%

Principal Cash Management Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Liquid segment. It has given a commendable 2.08% annual returns in the last three years. In the previous year, it delivered 3.19% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹2,000. It is one of most notable Debt mutual funds in India.

Min Investment Amt₹5,000
AUM165Cr
1Y Returns3.2%

Principal Low Duration Fund Direct Growth

Fund Performance: This fund has consistently performed above the benchmark in Low Duration segment. It has given a commendable -0.32% annual returns in the last three years. In the previous year, it delivered 9.91% returns.

Why to invest: This fund has performed better than other funds in the same category. The minimum SIP investment amount required to invest in this scheme is ₹2,000. It is one of most notable Debt mutual funds in India.

Min Investment Amt₹5,000
AUM70Cr
1Y Returns9.9%

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