Investment is the best way to make productive use of your money. The amount which you save if invested can build corpus over the time. It helps you earn extra money without working hard for it. There are various investment tools that help you reach your financial goals.
Mutual fund being the one allows the investor to diversify his/her money. Though the returns are not fixed but risk is rewarded in terms of capital build up. The investor has wide variety of options to park their money. In this article, Principal mutual fund schemes are provided. The AMC under various categories of fund offers the following schemes:
Principal Mutual Fund Schemes
- Equity Fund – Serving the purpose of long term investments, Equity funds offer a potential for higher growth at moderate risk. The investment is made in shares. The hike is noticeable if the amount is invested for a longer period of time. The schemes offered under equity funds are as follows:
- Principal Dividend Yield Fund
- Principal Emerging Bluechip Fund
- Principal Smart Equity Fund
- Principal Arbitrage Fund
- Principal Large Cap Fund
- Principal Growth Fund
- Principal Index Fund – Nifty
- Principal Equity Savings Fund
- ELSS – Investing in these schemes offer the tax deduction benefit on investment up to 1 lakh under Section 80C of the Income Tax Act, 1961. They are suitable for investors with high risk appetite and who want to generate corpus over the medium or long time. The schemes offered under it are as follows –
- Principal Personal Tax Saver Fund
- Principal Tax Savings Fund
- Balanced Fund – These funds invest in a combination of equity and debt. This category is well suited for the people looking forward to debt plus return at higher risk. The portfolio includes a mix of equity stocks and bonds. The Balanced Funds scheme is:
- Principal Balanced Fund
- Hybrid Funds – They invest in combination of debt and equity that needs to rebalanced frequently. They provide both income and capital appreciation and also diversify risk. The scheme is –
- Monthly Income Plan (MIP)
- Debt/Fixed Income – As the name suggests, the main purpose of this type of funds is to invest in the debt instruments such as bonds. It is best for the people expecting high income at low risk. The debt funds include the following schemes:
- Principal Dynamic Bond Fund
- Principal Short Term Income Fund
- Principal Debt Savings Fund
- Principal Money Manager Fund
- Principal Low Duration Fund
- Principal Credit Opportunities Fund
- Principal Government Securities Fund
- Liquid Funds – These schemes primarily invest in short-term instruments like commercial paper, certificates of deposit, treasury bills, government securities etc. These instruments are relatively safe and have a short maturity. It is ideal for investors looking for moderate returns on their surplus funds.
- Principal Cash Management Fund
- Fund of Funds – Fund of Funds is a type of mutual fund where investment is made in other mutual funds. This scheme is designed to match the diverse needs of investors based on their risk profiles, the aim of investments and return expectations. The schemes covered under this type are as follows:
- Principal Global Opportunities Fund
Features and Benefits of Investing in Mutual Funds
The investment in mutual fund provide the following benefits –
- Diversification of Risk – The funds are classified into equity and debt securities.
- High Liquidity – The investors can withdraw their money as and when required fully or partially. There is no boundation on drawing back the funds.
- Clarity – The AMC tells the investor where the money is being invested.
- Reasonable Pricing – Investors don’t have to pay the entry load while investing in MF.
- Professional Management – The mutual funds at ICICI are managed by the industry experts to ensure the security of investor’s money.
- Tax Savings – By investing in ICICI mutual funds, an investor gets tax exemption under section 80 C of Income Tax Act 1961.
- Flexibility – The investors are free to switch from one fund to another.
Investing in Principal Mutual Fund Schemes can assist your financial goals by providing a platform where you can grow your money. The selection of fund should be based on the purpose of investment and the risk appetite.
Disclaimer- Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.