Principal Index Fund

Principal Index Fund is a passively managed index fund. It is being managed by Rajat Jain. Like most index funds, this fund’s performance leaves a lot more to be desired. Exit any units you hold in this fund. 

Where does Principal Index Fund invest your money?

Principal Index Fund is a Nifty index fund which means your money will be invested in the stocks of companies listed on the index as in the same proportion as they are found on Nifty. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. Principal Index Fund has 2.1% exposure to stocks of mid size companies and remaining to large size companies. The fund manager’s job ends at picking stocks in the same proportion as found on the index.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not Suitable
  • Creating wealth
  • Lifestyle needs
  • Short term needs
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has Principal Index Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at July 1999, your value of investments would be around Rs 3.76 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.1 lakhs. The performance has been not good as comapred to other large cap mutual funds. The fund has been giving at around 2.21% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Principal Index Fund through SIP for the past 5 years today you would have around Rs 7.5 lakhs.

What charges apply?

There is no exit load for this fund.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Principal Index Fund does not qualify for sec 80C ELSS benefits.

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