Principal Financial Group is headquartered in Des Moines, IA has been in the investment management and insurance business for more than 140 years. With operations spanning over 27 countries, the company emphasizes incorporating Environmental, Social and Governance (ESG) factors into its investment approaches, which include a wide range of sustainable mutual funds that cater to sustainable businesses demonstrating ethical practices across various sectors such as equity investments as well as balanced portfolios. These factors position Principal Financial Group mutual funds as a trustworthy choice investment.

We have chosen three Principal Financial Group mutual funds — Principal MidCap PMBJX, Principal Capital Appreciation PCAPX and Principal LargeCap Growth PPUPX — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Principal MidCap fund invests most of its assets in equity securities of companies with medium-market capitalization. PMBJX advisors also choose to invest in foreign securities.

Bill Nolin has been the lead manager of PMBJX since Dec. 6, 2000. Most of the fund’s holdings were in companies like Brookfield Corp (5.1%), HEICO Corp (5%) and KKR & Co. Inc. (4.9%) as of July 31, 2024.

PMBJX’s 3-year and 5-year annualized returns are 8.3% and 12.6%, respectively. PMBJX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.78%.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Principal Capital Appreciation fund invests in equity securities of companies across all market capitalizations, with a higher emphasis on large-cap companies compared to small or mid-cap companies. PCAPX advisors also invest in securities of businesses they believe are undervalued, have a competitive advantage, and possess barriers to entry in their industries.

Daniel R. Coleman has been the lead manager of PCAPX since May 19, 2010. Most of the fund's holdings were in companies like Apple Inc. (6%), Microsoft Corp (5.7%) and NVIDIA Corp (4.3%) as of July 31, 2024.

PCAPX's 3-year and 5-year annualized returns are 12.6% and 15.8%, respectively. PCAPX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 0.81%.