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4 Zacks Rank #1 Principal Mutual Funds To Invest In

Published 07/28/2017, 08:58 AM
Updated 07/09/2023, 06:31 AM
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Principal Financial Group (NYSE:PFG) is a headquartered in Des Moines, Iowa. It is a renowned publicly owned global investment management firm focused on offering financial tools, resources and information to investors. The fund family aims to support the requirements of both individual and institutional investors with their asset management services, insurance and retirement solutions.

Principal Financial Group was founded in 1879 and manages assets worth over $629.4 billion (as of June 30, 2017) raised all over the globe. It offers investment management strategies and services in 18 countries. The company invests in equities, multi-assets, fixed income real estates and alternative markets.

Below we share with you four top-ranked Principal Financial mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Principal Financial funds.

Principal SmallCap S&P 600 Index R5 (PSSPX invests a bulk of its assets in securities of companies from the S&P SmallCap 600 Index. In this index, the market-cap of companies ranges between $58.0 million and $4.5 billion. The fund seeks capital growth for the long run. Principal SmallCap S&P 600 Index R5 has returned 18.2% over the last one-year period.

PSSPX has an expense ratio of 0.42% compared to the category average of 1.25%.

Principal MidCap J PMBJX seeks growth of capital for the long run. PMBJX invests a major portion of its assets in securities of companies within the range of the Russell Midcap Index. The fund not only invests in U.S. companies but also in non-U.S. companies. Principal MidCap J returned 16.7% over the last one-year period.

K. William Nolin is one of the fund managers of PMBJX since 2000.

Principal Equity Income R4 PEIPX invests the lion’s share of its assets in equity securities of large- and mid-cap companies, which have dividend-paying abilities. The fund focuses on equity securities, which are generally undervalued. Principal Equity Income R4 has returned 15.2% over the last one-year period.

PEIPX has an expense ratio of 0.89% compared to the category average of 1.10%.

Principal Short-Term Income A SRHQX seeks growth of income and effective investment management. SRHQX generally invests in fixed-income securities, which include high quality short-term debt securities. These bonds are normally rated BBB- or higher. The fund is believed to maintain an effective duration of not more than five years. Principal Short-Term Income A has returned 1.6% over the last one-year period.

As of June 30, 2017, SRHQX held 472 issues, with 0.95% of its assets invested in Prudential (LON:PRU) Finl FRN.

To view the Zacks Rank and past performance of all Principal Financial mutual funds, investors can click here to see the complete list of Principal Financial funds.

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