Risk Factors

Risk Factors:

  • Mutual Funds and Securities investments are subject to market risks and there can be no assurance and no guarantee that the objective of Principal Mutual Fund can be achieved.
  • All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market.
  • Past performance of the Sponsor/AMC/Mutual Fund does not indicate or guarantee the future performance of the scheme(s) of Principal Mutual Fund. 
  • Principal Dividend Yield Fund, Principal Emerging Bluechip Fund, Principal Balanced Advantage Fund, Principal Arbitrage Fund, Principal Focused Multicap Fund, Principal Multi Cap Growth Fund, Principal Nifty 100 Equal Weight Fund, Principal Equity Savings Fund, Principal Tax Savings Fund, Principal Personal Tax Saver Fund, Principal Hybrid Equity Fund, Principal Dynamic Bond Fund, Principal Short Term Debt Fund, Principal Corporate Bond Fund, Principal Ultra Short Term Fund, Principal Low Duration Fund, Principal Credit Risk Fund, Principal Government Securities Fund, Principal Cash Management Fund, Principal Global Opportunities Fund and Principal Retirement Savings Fund are only the names of the Scheme(s) and does not in any manner indicate either the quality of the schemes or its future prospects or return.
  • Investors are requested to read the Offer Document/Statement of Additional Information (SAI) / Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective schemes carefully before investing.

Investment Objectives of the schemes of Principal Mutual Fund:

  • Principal Credit Risk Fund: The Fund seeks to generate income and capital gains by predominantly investing in a portfolio of AA and below rated corporate debt securities across the credit spectrum within the investment grade.
  • Principal Balanced Advantage Fund: The primary objective of the scheme is to seek to generate long-term capital appreciation with relatively lower volatility through a systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. The Scheme will decide on the allocation of funds into equity assets based on equity market Price Earnings Ratio (PE Ratio) levels. When the markets become expensive in terms of ‘Price to Earnings’ Ratio; the Scheme will reduce its allocation to equities and move assets into cash future arbitrage/ equity derivatives, debt and/or money market instruments and vice versa.
  • Principal Cash Management Fund: To provide investors with as high a level of income available from short-term investments as is considered consistent with preservation of capital and maintenance of liquidity, by investing in a portfolio of money market and investment grade debt instruments.
  • Principal Corporate Bond Fund: The fund seeks to generate steady income and capital appreciation by investing primarily in AA+ and above rated corporate debt securities across maturities and ratings while maintaining the optimum balance of yield, safety and liquidity.
  • Principal Dividend Yield Fund: The investment objective of the scheme would be to provide capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of companies that have a relatively high dividend yield.
  • Principal Dynamic Bond Fund: To generate regular income and capital appreciation/ accretion through investment in debt instruments and related securities besides preservation of capital.
  • Principal Emerging Bluechip Fund: The primary objective of the scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of large cap & midcap companies.
  • Principal Equity Savings Fund: The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments.
    However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated and the scheme does not assure or guarantee any returns.
  • Principal Focused Multicap Fund: The Investment Objective of the scheme would be to provide capital appreciation and /or dividend distribution by investing in companies across market capitalization.
  • Principal Global Opportunities Fund: The investment objective of the Scheme is to provide long-term capital appreciation by predominantly investing in overseas mutual fund schemes, and a certain portion of its corpus in Money Market Securities and/or units of Money Market / Liquid Schemes of Principal Mutual Fund.
  • Principal Hybrid Equity Fund: The Investment objective of the Scheme is to provide long-term appreciation and current income by investing in a portfolio of equity, equity-related securities and fixed income securities.
  • Principal Low Duration Fund: To generate regular income & capital appreciation through investments in debt securities and money market instruments.
  • Principal Multi Cap Growth Fund: To achieve long-term capital appreciation.
  • Principal Nifty 100 Equal Weight Fund: To invest principally in securities that comprise Nifty 100 Equal Weight Index and subject to tracking errors endeavour to attain results commensurate with the Nifty 100 Equal Weight Index.
  • Principal Personal Tax Saver Fund: To provide long-term growth of capital. The Investment Manager will aim to achieve a return on assets in excess of the performance of S&P BSE 100 Index.
  • Principal Retirement Savings Fund: The investment objective of the scheme is to provide capital appreciation and income generation to enable investors save over the long term towards their retirement savings goals, by investing in a mix of securities comprising of equity, equity related instruments and fixed income securities.
    However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
  • Principal Short Term Debt Fund: To generate regular income and capital appreciation/ accretion through investment in debt instruments and related securities besides preservation of capital and has been designed to achieve stable returns over shorter-term investment horizons.
  • Principal Tax Savings Fund: To build a high-quality growth-oriented portfolio to provide long-term capital gains to the investors. The scheme aims at providing returns through capital appreciation.
  • Principal Ultra Short Term Fund: To generate regular income & capital appreciation through investments in debt securities and money market instruments.
  • Principal Arbitrage Fund: The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
    There is no assurance or guarantee that the investment objective of the Scheme will be realized.