Blue Chip Fund (Prospectus Summary) | Blue Chip Fund

Blue Chip Fund

Objective:

The Fund seeks long-term growth of capital.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.

Shareholder Fees (fees paid directly from your investment): None

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

Annual Fund Operating Expenses		Blue Chip Fund Institutional Class
Management Fees		0.70%
Other Expenses	[1]	0.51%
Total Annual Fund Operating Expenses		1.21%
Expense Reimbursement	[2]	0.46%
Total Annual Fund Expenses After Expense Reimbursement		0.75%

Example

This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:

Expense Example (USD $)	Expense Example, With Redemption, 1 Year	Expense Example, With Redemption, 3 Years
Blue Chip Fund Institutional Class	77	339

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate
may indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the Fund's performance.
This is a new Fund and does not yet have a portfolio turnover rate to disclose.

Principal Investment Strategies

Under normal circumstances, the Fund invests at least 80% of its net assets, plus
borrowings for investment purposes, in equity securities of companies with large
market capitalizations (those with market capitalizations similar to companies in
the Russell 1000 Growth® Index (as of December 31, 2011, this range was between
approximately $578 million and $401.25 billion) at the time of purchase. The
Fund may invest in foreign securities.
  
The Fund invests in growth equity securities; growth orientation emphasizes
buying equity securities of companies whose potential for growth of capital
and earnings is expected to be above average.

Principal Risks

The Fund may be an appropriate investment for investors seeking long-term growth
of capital and willing to accept the potential for short-term fluctuations in
the value of investments.

The value of your investment in the Fund changes with the value of the Fund's
investments. Many factors affect that value, and it is possible to lose money by
investing in the Fund. An investment in the Fund is not a deposit of a bank and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The principal risks of investing in the Fund, in
alphabetical order, are:

Equity Securities Risk. Equity securities (common, convertible preferred stocks
and other securities whose values are tied to the price of stocks, such as
rights, warrants and convertible debt securities) could decline in value if the
issuer's financial condition declines or in response to overall market and
economic conditions. A fund's principal market segment(s), such as large cap,
mid cap or small cap stocks, or growth or value stocks, may underperform other
market segments or the equity markets as a whole. Investments in smaller
companies and mid-size companies may involve greater risk and price volatility
than investments in larger, more mature companies.

Foreign Securities Risk. The risks of foreign securities include loss of value
as a result of: political or economic instability; nationalization, expropriation
or confiscatory taxation; changes in foreign exchange rates and foreign exchange
restrictions; settlement delays; and limited government regulation (including
less stringent reporting, accounting, and disclosure standards than are required
of U.S. companies).
  
Growth Stock Risk. If growth companies do not increase their earnings at a rate
expected by investors, the market price of the stock may decline significantly,
even if earnings show an absolute increase. Growth company stocks also typically
lack the dividend yield that can lessen price declines in market downturns.

Performance

No performance information is shown because the Fund has not yet had a calendar
year of performance. The Fund's performance will be benchmarked against the
Russell 1000 Growth Index.

[1] Other Expenses are estimated for the year ending August 31, 2012.

[2] Principal Management Corporation ("Principal"), the investment advisor, has contractually agreed to limit the Fund's expenses attributable to Institutional class shares and, if necessary, pay expenses normally payable by the Fund, excluding interest expense through the period ending December 31, 2013. The expense limit will maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.75%. It is expected that the expense limit will continue through the period disclosed; however, Principal Funds, Inc. and Principal, the parties to the agreement, may agree to terminate the expense limit prior to the end of the period.