Principal Blue Chip Fund Class C (PBLCX)

Overview

The fund primarily focuses on investing a significant portion of its assets—minimum 80%—plus any borrowings intended for investment purposes, into the equity securities of large market capitalization companies. These companies are selected based on their "blue chip" characteristics as judged by the fund's investment advisor. A "blue chip" company is typically understood to be a large, stable, and financially sound entity with a solid reputation for reliability, quality, and financial stability. The investment strategy emphasizes selecting companies that are not just stable and reliable but also show promising potential for growth in capital and are expected to generate above-average earnings. Additionally, the fund diversifies its portfolio by including securities of foreign companies, aiming to capitalize on global growth opportunities and to spread investment risks.

Products and Services

• Equity Securities of Large Market Capitalization Companies:

  This service involves investing in the equity securities of companies with large market capitalizations, which are generally considered to be more stable and reliable investments. These "blue chip" companies are carefully selected by the fund's investment advisor based on their potential for growth in capital and their expectation to generate above-average earnings.

• Investments in Foreign Companies:

  The fund also allocates a portion of its portfolio to securities of foreign companies, expanding its investment horizon beyond domestic markets. This approach allows the fund to tap into potential growth opportunities in international markets, diversifying its investment and potentially mitigating risks associated with concentrating investments in a single country or region.