Top 10 Principal Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Principal Short Term Income FundDebtModerate-0.1%3star157
Principal Corporate Bond FundDebtModerate8.8%2star18
Principal Money Manager FundDebtModerately Low3.3%2star62
Principal Credit Risk FundDebtModerate1.5%2star58
View All Top 10 Principal Mutual Funds

Best Principal Debt Mutual Funds

Principal Mutual Fund was established in 1994 and is one of the oldest AMC's in the country. The AMC has over 4 lakh customers and more than 20,000 distributors across the country. What is unique about this asset management company is that they are committed to provide financial to retail investors and institutions alike.

With a financial legacy of more than 130 years, their global expertise proves to be am asset for taking adequate market decisions.

The AMC provides a wide range of products, ranging from equity, debt and hybrid. The schemes invest in diverse portfolios and aim to generate subsequent returns. They believe in delivering superior risk adjusted returns to clients and believe in carrying out business in a safe and transparent manner, maintaining a high level of trust and integrity among clients

If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.

Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.

Let's have a closer look

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

Principal Short Term Debt Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided 4.35% annualized returns in the last 3 years. In the last 1 year, it gave -0.12% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.12% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹2,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM157Cr
1Y Returns-0.1%

Principal Corporate Bond Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Corporate Bond segment and provided 7.04% annualized returns in the last 3 years. In the last 1 year, it gave 8.83% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.83% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹2,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM18Cr
1Y Returns8.8%

Principal Ultra Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 5.59% annualized returns in the last 3 years. In the last 1 year, it gave 3.27% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.27% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹2,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM62Cr
1Y Returns3.3%

Principal Credit Risk Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Credit Risk segment and provided 5.41% annualized returns in the last 3 years. In the last 1 year, it gave 1.47% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.47% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹2,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM58Cr
1Y Returns1.5%

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What does investing in Principal Debt Mutual Funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

How to invest in Principal Mutual Funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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