Mutual Funds

  • Invest with global partner
  • Multi-boutique business model
  • Unique investment philosophies

Funds in focus

Explore the full spectrum of Principal Fund Series

Principal mutual funds cover various asset classes of mutual funds, from domestic equity to specialized sectors, so you can find the mix of funds that helps you to achieve your strategic investment goals.

Explore all funds
Asset Management


Mutual Fund

Interest rate risk

When a debt fund invests in fixed income securities, they may be subject to interest rate risk due to the rise or fall in interest rates.


Credit risk

This is applicable to the underlying fixed income securities of mutual funds. If a bond issuer cannot repay a bond it may end up being a worthless investment.


Lack of control

As much as mutual funds offer the convenience of investing, the investors cannot determine the exact composition of a fund’s portfolio, nor can they directly influence which securities the fund manager can buy.

While the above disclaimer holds true for these risks, investors are also advised to be aware of other regulatory risks or changes while investing.


Risk and Reward

The key to reducing risk is diversification or as the saying goes ‘don’t put all your eggs in one basket.’ The diversification that mutual funds provide can help to ease risk by offsetting losses of some securities with gains in others.

Professional management

When you invest in mutual funds, you may quit worrying about where and how to invest. Let your fund managers take a call based on thorough market research, monitoring and experience.



Mutual funds can also invest in other assets like bonds, cash, or commodities like gold and other precious metals. This is called diversification and it allows you to reduce the risk of investing in one particular stock or sector. Additionally, it gives you a broader exposure to various stocks and sectors.



Mutual funds are more or less classified as liquid investments; unless guided by a pre-specified lock-in period. This means, as an investor you can redeem your unit holdings at any point (subject to exit load, if any) -- giving you any time access to your money. Further, funds are well integrated with the banking system -- which means that most funds can transfer money directly to your bank account.

Ease of investment 

You can invest in mutual funds either directly or through a financial advisor. A mutual fund allows you to start with small investments. For instance, a SIP lets you invest small amounts of money (as low as Rs. 500) at regular intervals – helping you achieve your financial goals through disciplined and systematic investing.


Variety in investing 

Mutual Funds offer multiple scheme options depending upon your financial goal, risk appetite and time horizon.



Investors can stay updated on information pertaining to the markets and schemes by logging on to our website or calling our customer care. They can view factsheets, offer documents, annual reports, etc.


Open ended funds

Open ended funds allow investors to subscribe or redeem units as per the prevailing Net Asset Value (NAV) on a continuous basis. Basically, what you get with open ended funds is liquidity and flexibility of time.


Close ended funds

Listed on the stock exchange, these funds come with a fixed maturity date, like 3-6 years. Investors can opt to subscribe to close ended funds at the time of initial launch.


Interval Funds

These funds are a hybrid of open and close ended funds. While they operate mainly as close ended funds, these funds may trade on stock exchanges and are open for sale or redemption at predetermined intervals at the prevailing NAV.


Equity/Growth Funds

If you are investing in equity growth funds, then you are largely putting your money in stocks. The main objective of these funds is to achieve long-term capital growth. Equity funds invest at least 65% of their corpus in equity and equity-related securities. These funds may invest in a wide range of industries/sectors or focus on one or more sectors. These funds are suitable to invest in if you have a higher risk appetite and you have a long-term financial goal.


Debt/Income Funds

Following a simpler approach, debt/income funds usually invest 65% of the amount in fixed income securities such as bonds, corporate debentures, government securities (gilts) and money market instruments. These funds are likely to be less volatile than equity funds.


Balanced Funds

With an aim to provide stability of returns and capital appreciation, balanced mutual funds invest in both equities and fixed income instruments. These funds generally tend to invest around 60% in equity and 40% in debt instruments such as bonds and debentures.


Money Market/Liquid Funds

If you are looking for a fund that offers liquidity and capital preservation with moderate income, then this is a suitable choice. Money market/liquid funds invest in safer short-term instruments such as Treasury Bills, Certificates of Deposit and Commercial Paper for less than 91 days. These funds are ideal to invest in if you are a corporate or an individual investor and wish to earn moderate returns on surplus funds.


Gilt Fund

Gilt mutual funds invest exclusively in government securities. The Gilt funds do not carry a credit risk - where the issuer of the security can default. However, it comes with an interest rate risk i.e. risk due to the rise or fall in interest rates.


Tax Saving (Equity Linked Savings Schemes/ELSS) Funds

The Income Tax Act offers tax deduction under specific provisions of the Income Tax Act, 1961. Designed to generate capital growth, ELSS mutual funds invest primarily in equities and largely suit investors with a higher risk appetite for capital appreciation. Spread over medium to long-term, tax saving funds comes with a lock-in period of 3 years.


Index Funds

Index funds are attached to a particular index such as the BSE SENSEX or the S&P CNX NIFTY. Their performance is linked to the results of that index. Here, the portfolio comprises stocks that represent an index and the weightage assigned to each stock is in line with the identified index. Hence, the returns will be more or less similar to those generated by the Index.


Sector-specific Funds

Sector-specific funds invest in the securities of a specific sector or industry such as FMCG, Pharmaceuticals, IT, etc. The returns on these funds are directed by the performance of the respective sector/industries.

Sector funds allow an investor to diversify funds across multiple companies within an industry. These funds tend to be riskier as the performance is directly linked to that of the overall sector.


This material is intended for general reference only. This material does not constitute an offer or solicitation or invitation or advice or recommendation to enter into any transactions.  Investment involves risk. There is no assurance on investment returns.  You should consider your own risk tolerance level and financial circumstances before making any investment choices. If you are in doubt as to whether a certain fund or product mentioned in this material is suitable for you, you should seek independent professional advice.

Issuer of this material

Principal Global Investors Funds, CCB Principal Selected Growth Mixed Asset Fund, CCB Principal Dual Income Bond Fund 
Issuer: Principal Investment & Retirement Services Limited

Principal Life Style Fund, Principal Prosperity Series
Issuer: Principal Asset Management Company (Asia) Limited

This material has not been reviewed by the Securities and Futures Commission.