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.

Top 10 Principal Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Principal Low Duration FundDebtModerately Low6.3%4star735
Principal Corporate Bond FundDebtModerate3.8%2star19
Principal Money Manager FundDebtModerately Low1.6%2star60
Principal Government Securities FundDebtModerate15.1%2star12
Principal Cash Management FundDebtLow-1.8%2star398
Principal Dynamic Bond FundDebtModerate3.4%2star81
Principal Credit Risk FundDebtModerate6.8%2star81
Principal Bank CD FundDebtModerately Low8.3%1star74
Principal Short Term Income FundDebtModerate6.2%1star265
View All Top 10 Principal Mutual Funds

Let's have a closer look

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

Principal Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.84% annualized returns in the last 3 years. In the last 1 year, it gave 6.28% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.28% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Pankaj Jain

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM735Cr
1Y Returns6.3%

Principal Corporate Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Corporate Bond segment and provided 6.66% annualized returns in the last 3 years. In the last 1 year, it gave 3.79% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.79% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Gurvinder Singh Wasan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM19Cr
1Y Returns3.8%

Principal Money Manager Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 5.64% annualized returns in the last 3 years. In the last 1 year, it gave 1.62% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.62% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Pankaj Jain

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM60Cr
1Y Returns1.6%

Principal Government Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 12.81% annualized returns in the last 3 years. In the last 1 year, it gave 15.11% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 15.11% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Bekxy Kuriakose

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM12Cr
1Y Returns15.1%

Principal Cash Management Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 4.23% annualized returns in the last 3 years. In the last 1 year, it gave -1.77% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -1.77% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Pankaj Jain

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM398Cr
1Y Returns-1.8%

Principal Dynamic Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.09% annualized returns in the last 3 years. In the last 1 year, it gave 3.42% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.42% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Bekxy Kuriakose

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM81Cr
1Y Returns3.4%

Principal Credit Risk Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Credit Risk segment and provided 7.85% annualized returns in the last 3 years. In the last 1 year, it gave 6.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.76% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Gurvinder Singh Wasan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM81Cr
1Y Returns6.8%

Principal Short Term Income Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.89% annualized returns in the last 3 years. In the last 1 year, it gave 8.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.26% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Gurvinder Singh Wasan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating1star
AUM74Cr
1Y Returns8.3%

Principal Short Term Income Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided 7.76% annualized returns in the last 3 years. In the last 1 year, it gave 6.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.2% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Gurvinder Singh Wasan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating1star
AUM265Cr
1Y Returns6.2%

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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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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