Principal Global Opportunities Fund

Principal Global Opportunities Fund is an fund of fund. It is being managed by Mr Rajat Jain. The scheme seeks to build a high quality portfolio of equity and equity related instruments listed overseas. It would aim to identify eligible stocks, which can provide capital appreciation in the long term to out of the list of permitted securities. New investors may skip this one for now. If you have already invested in this scheme, keep a close watch on its performance.

Where does Principal Global Opportunities Fund invest your money?

Principal Global Opportunities fund’s investment objective 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.

Suitable for what?
  •  Creation of wealth
  •  Lifestyle needs
  •  Short Term needs
Not suitable for what?
  • Child’s Education
  • Child’s Marriage
  • Planning for retirement
  • Home Purchase
How has Principal Global Opportunities Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Mar 2004, your value of investments would be around Rs 2.1 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.2 lakhs. The fund has been 3.6% returns for those who have stayed invested for 5 years. 

Assume you had invested Rs. 10,000 every month in Principal Global Opportunities Fund through SIP for 5 years today you would have around Rs 8.22 lakhs.

How will Principal Global Opportunities Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Principal Global Opportunities Fund is 0.95%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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