Principal Equity Income Fund Institutional Class (PEIIX)

Overview

This fund is primarily focused on investing in dividend-paying equity securities, targeting companies with large to medium market capitalizations. By allocating at least 80% of its net assets, along with any borrowings intended for investment purposes, the fund strives to capitalize on the potential growth and income generation of its holdings. The fund's investment approach is rooted in value investing. This strategy involves seeking out equity securities that are believed to be undervalued in the market, with the expectation that they will provide favorable returns over time. Through this methodology, the fund aims to offer investors access to opportunities that not only present immediate income through dividends but also the promise of capital appreciation.

Products and Services

• Dividend-Paying Equity Securities

  This product focuses on stocks that regularly distribute a portion of their earnings to shareholders in the form of dividends. Targeting companies with a stable and reliable dividend payout history, this investment aims to provide investors with a steady income stream, alongside the potential for stock price appreciation.

• Large and Medium Market Capitalization Companies

  The fund primarily invests in companies with large and medium market capitalizations, which are typically well-established businesses within their respective industries. These companies are often considered less risky than smaller cap companies, making them attractive for investors seeking a balance of growth and stability in their portfolio.

• Value Equity Securities

  Centered around the principle of value investing, this service emphasizes identifying and investing in stocks that are believed to be undervalued by the market. The objective is to invest in companies whose stock prices do not fully reflect their fundamental worth, offering the potential for significant returns when the market corrects these mispricings.