Principal Retail Equity Saving Fund

Principal Retail Equity Saving Fund is being managed by Rajat Jain. The fund’s performance has always been miserable. If you have invested in this fund exit now and cut further losses.

Where does Principal Retail Equity Saving Fund invest your money?

Principal Retail Equity Saving Fund is a large cap fund which means most of your money will be invested in stocks of large companies. 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 Retail Equity Saving Fund has 25% exposure to mid size companies, 10% exposure to small size companies and 65.83% exposure to large companies.

Apart from equities the fund holds bonds to the tune of 19% and cash to the tune of 12% of the entire portfolio.

Suitable for what?

The following needs if occurring between 3 and 5 years: -

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

If you had invested Rs 1 lakh when the fund was launched at Jan 1998, your value of investments would be around Rs 8.69 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.09 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving at around 2% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Principal Retail Equity Saving Fund through SIP for the past 5 years today you would have around Rs 6.9lakhs.

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 No exit load applies for units withdrawn post one year.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 Retail Equity Saving Fundis 2.50%. 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 an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Principal Retail Equity Saving Funddoes not qualify for sec 80C ELSS benefits.

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.

Explore more in a easy manner.

Table of Contents

Table of Contents