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In the last 3 years, Principal Balanced Fund gave 16.7% annualized returns, the highest among all equity oriented balanced funds in the industry (please refer to Advisorkhoj research tool, Top Performing Balanced Fund Equity Oriented). Even in the last 5 years, Principal was among the top 5 balanced funds, giving nearly 18% annualized returns. The fund continued its outstanding performance in 2017, giving nearly 36% annualized returns. Though Principal Balanced Fund is still not as popular as some of its industry peers (total AUM stands at Rs 870 Crores), it is one of the fastest growing (in terms of AUM) in the Balanced Fund category. Principal Balanced Fund outperformed its more popular peers both in terms of trailing returns (1 year, 3 years and 5 years) and also in terms of performance consistency. The chart below shows the performance of Principal Balanced Fund versus its benchmark over the last 5 years. You can see in the chart above, that Principal Balanced Fund generated p

2017 was a great year for stock markets in India with the Nifty rising by nearly 2,470 points (a rise of nearly 29%). Mutual fund investors enjoyed fantastic returns, especially in the small and midcap funds category in 2017 – fund category return of over 36%. This terrific rally has also brought concerns with regards to valuations. Sumit Bhatnagar, fund manager in Indiabulls Asset Management Company, feels that investors need to “tone down their return expectations” In our blog posts, Are midcap valuations a cause of concern for mid cap mutual funds – Part 1 and Part 2, we discussed that valuations of many midcap stocks are very high and many midcap stocks are trading at a huge premium to large cap stocks. If there is a sharp correction in the market in the near term then, small and midcap stocks are likely to be affected the most due to stretched valuations. From a risk reward trade-off perspective, large cap stocks and funds are the best place to be in such a scenario. Many mu