Principal Large Cap Fund

Principal Large Cap Fund is among the good performing funds in its category. This fund is being managed by Anupam Tiwari. The fund has outperformed its benchmark and peers in most periods. You can continue being invested with this fund, if you already hold units in it.

Where does Principal Large Cap Fund invest your money?

Principal Large Cap Fund is a large and mid cap fund which means most of your money will be invested in stocks of large and medium sized companies. Large cap stocks tend to be stable compared to mid cap and small cap companies yet mid cap stocks are not avoided due to prospects of kicker returns. Principal Large Cap Fund has 18% exposure to mid sized companies and 82.21% exposure to large companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not Suitable for?
  • Creating wealth
  • Lifestyle needs
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Make Franklin India Bluechip as part of your core portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio. Core portfolio is investments that are made for your basic goals.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
How has Principal Large Cap Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2005, your value of investments would be around Rs 4.14 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.82 lakhs. The performance has been similar to other well performing funds belonging to the same category. The fund has been giving at around 12.75% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Principal Large Cap Fund through SIP for the past 5 years today you would have around Rs 7.92 lakhs.

How will Principal Large Cap 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 follows 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.

When to review the performance?

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

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 Large Cap Fund is 2.5%. 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. 

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.

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 Large Cap Fund does not qualify for sec 80C ELSS benefits.

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