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Element

Value

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Prospectus Date

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Feb. 29, 2012

MidCap Blend Fund (Prospectus Summary): | MidCap Blend Fund

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Risk/Return, Heading

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MidCap Blend Fund  

Supplement Text

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Supplement dated September 14, 2012

to the Class R-1, Class R-2, Class R-3, Class R-4 and Class R-5 Shares Prospectus

for Principal Funds, Inc.

dated February 29, 2012

(as supplemented on March 16, 2012, April 23, 2012, June 15, 2012, and July 17, 2012)

This supplement updates information currently in the Prospectus. Retain this supplement with the Prospectus.

FUND SUMMARIES

Investment Strategy, Heading

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Under the Principal Investment Strategies heading, delete the first paragraph and substitute:  

Investment Strategy, Narrative

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Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with medium market capitalizations (those with market capitalizations similar to companies in the Russell Midcap ^® Index (as of December 31, 2011, this range was between approximately $117 million and $20.51 billion) at the time of purchase. The Fund may invest in foreign securities.

MidCap Blend Fund | R-1

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PMSBX

MidCap Blend Fund | R-2

Risk/Return:

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Trading Symbol

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PMBNX

MidCap Blend Fund | R-3

Risk/Return:

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Trading Symbol

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PMBMX

MidCap Blend Fund | R-5

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PMBPX

MidCap Blend Fund | R-4

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PMBSX