Best Principal Hybrid 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 we allocate 65 to 80 percent of a fund to equity and assign remaining to debt and similar instruments, then what we get in return is a Hybrid-Equity fund. These funds allow you to enjoy good returns and low-risk rates courtesy their significant allocation in debt funds. Market gurus believe that it is better to invest in these than to go for an equity-debt portfolio as there is no tax imposed on the debt funds in the mix. It has returns that are taxed at 15% if sold before one year, post this period a 10% tax is applicable on the gains.

Purpose: Invest in these funds instead of buying a different kind of equity-debt funds with 60-40 allocations. These funds are best to moderate your risk with a fair return in the high-risk portfolio.

Top 10 Principal Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Principal Hybrid Equity FundHybridModerately High-0.6%5star1,603
Principal Smart Equity FundHybridModerately High4.9%2star169
Principal Arbitrage FundHybridModerately Low0.2%1star10
Principal Equity Savings FundHybridModerate3.0%1star75
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 Hybrid Equity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Aggressive segment and provided 14.84% annualized returns in the last 3 years. In the last 1 year, it gave -0.56% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.56% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: P V K Mohan, Bekxy Kuriakose

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,603Cr
1Y Returns-0.6%

Principal Smart Equity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Balanced Advantage segment and provided 8.23% annualized returns in the last 3 years. In the last 1 year, it gave 4.91% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.91% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: P V K Mohan, Bekxy Kuriakose

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM169Cr
1Y Returns4.9%

Principal Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 0.22% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.22% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Rajat Jain

Launch Date20 Apr 2016
Min Investment Amt5,000
Groww Rating1star
AUM10Cr
1Y Returns0.2%

Principal Equity Savings Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Equity Savings segment and provided 7.87% annualized returns in the last 3 years. In the last 1 year, it gave 3.03% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.03% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: P V K Mohan, Pankaj Jain

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating1star
AUM75Cr
1Y Returns3.0%

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What does investing in Principal Hybrid 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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