Mutual Funds Articles

Principal Equity Savings Fund is an open ended hybrid equity oriented mutual fund scheme. The scheme was launched in May 2002. From a taxation standpoint, this fund is treated like an equity fund scheme. Long term capital gains (holding period of more than 12 months) in this fund is tax free. Short term capital gains are taxed at 15%. The...

Different asset classes have different risk / return characteristics and give different returns in different market conditions. The chart below shows calendar year returns of different asset classes over the last 10 years; BSE 100 TRI is used as the proxy for equity, CRISIL Short term Bond Fund Index for debt and MCX Gold futures for Gold...

With banks reducing FD interest rates, we are seeing investor interest in debt mutual funds over the last few months. However, many investors are concerned about credit risks affecting debt funds. With the economy contracting and company revenues severely hit in the wake of COVID-19 pandemic credit risk concerns are likely to...

We have reviewed Principal Emerging Bluechip Fund, a large and midcap equity fund from Principal Mutual Fund stable, a number of times in the last few years. In our usual fund reviews, we look at a performance of a scheme across various market conditions, performance versus benchmark and peers, portfolio composition etc. In this post, we...

The outbreak of COVID-19 pandemic has caused great turmoil in equity markets all over the world including India. The lockdown announced by the Government in late March and gradual reopening of the economy in the face of continuing rise in COVID infections is likely to have an adverse impact on economic growth and corporate earnings. As a...

Principal Focused Multi-cap Fund is one of the best performing focused equity funds in the last 6 months to 1 year. The scheme was ranked 4^th among 22 focused equity schemes in terms of last 6 months performance and 4^th among 19 schemes in terms of last 1 year performance. The chart below shows the trailing returns of Principal...

SIP is a disciplined way of investing from your regular savings to accumulate corpuses for your long term goals. However, a severe market crash can erode considerable amount of wealth accumulated over several years through SIP. In this two part blog post, we are discussing how you can protect your wealth created by Mutual Fund SIPs...

The equity market has suffered very badly since the outbreak of Coronavirus pandemic. The Sensex has already fallen 25% this year and more pain is expected in coming weeks and months. Almost all industry sectors are in the red with one exception, healthcare. The S&P BSE Healthcare TRI is already up 16% on a year to date...

Whatsapp is the most popular social media platform in India. India had 400 million Whatsapp users as on June 2019 (source: Niti Ayog). In contrast, Facebook users in India totalled at 241 million even though Facebook is an older app than Whatsapp. There are 450 million smartphone users in India. This means that Whatsapp is used...

Principal Focused Multi-cap Fundinvests in about 30 stocks of different sizes (large cap, midcap and small cap) with high growth potential across different industry sectors. As per SEBI’s mandate for focused funds, the maximum number of stocks in the scheme’s portfolio will be limited to 30 only. This scheme was launched in 2005 and has given...