Principal Growth Fund

Principal Growth Fund is being managed by P.V.K. Mohan. The fund has grossly underperformed. If you have invested in this fund you may consider exiting now.

Where does Principal Growth fund invest your money?

Principal Growth Fund is a large and mid cap fund which means your money will be invested in stocks of large and medium sized companies. Large cap companies tend to be stable compared to mid cap companies. This fund has 65.18% exposure to large companies, 24.20% exposure to medium size companies and about 11% exposure to small size companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs 
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Short term needs
Past Performance

If you had invested Rs 1 lakh when the fund was launched at Oct 2000, your value of investments would be around Rs 5.57 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 96706. The performance has been poor as compared to other large cap and mid cap mutual funds. The fund has been giving at around 0.5% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Principal Growth Fund through SIP for the past 5 years today you would have around Rs 7.21 lakhs.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment.
Not Recommended
How has Principal Growth fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Jan 2000, your value of investments would be around Rs 3 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.4 lakhs. The performance has not been similar to the average equity oriented hybrid mutual funds. The fund has been giving at around 9% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in Principal Balanced Fund through SIP from the past five years today you would have around Rs 6.8 lakhs.

What charges apply?

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 No exit load applies for units withdrawn post one year.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 Growth fund is 2.37%. 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 did not withdraw within 1 year. Principal Growth fund does not qualify for sec 80C ELSS benefits.

 

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