Before you invest, you may want to review the Fund’s prospectus, which contains more information about 

the Fund and its risks. You can find the Fund’s prospectus and other information about the Fund online at 

www.principalfunds.com/investor/forms/prospectuses.htm. You can also get this information at no cost by 

calling 1-800-222-5852 or by sending an email request to prospectus@principalfunds.com. 

This Summary Prospectus incorporates by reference the Statutory Prospectus for Classes A, B, and C 

shares dated March 1, 2011 and the Statement of Additional Information dated March 1, 2011 (which may 

be obtained in the same manner as the Prospectus). 

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. You 

may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at 

least $50,000 in Principal Funds, Inc. More information about these and other discounts is available from 

your financial professional and in “Choosing a Share Class” and “The Costs of Investing” beginning on 

pages 214 and 221, respectively, of the Fund’s prospectus and “Multiple Class Structure” beginning on 

page 103 of the Fund’s Statement of Additional Information. 

Shareholder Fees (fees paid directly from your investment)
	Class A	Class B	Class C
Maximum Sales Charge (Load) Imposed on Purchases	5.50%	None	None
(as a percentage of offering price)
Maximum Deferred Sales Charge (Load)	1.00%	5.00%	1.00%
(as a percentage of dollars subject to charge)

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
For the year ended October 31, 2010	Class A	Class B	Class C
Management Fees	0.75%	0.75%	0.75%
Distribution and/or Service (12b-1) Fees	0.25%	1.00%	1.00%
Other Expenses	0.64%	1.50%	1.11%
Acquired Fund Fees and Expenses	0.10%	0.10%	0.10%
Total Annual Fund Operating Expenses	1.74%	3.35%	2.96%
Expense Reimbursement	0.29%	0.96%	0.78%
Total Annual Fund Operating Expenses after Expense Reimbursement	1.45%	2.39%	2.18%
Principal Management Corporation has contractually agreed to limit the Fund’s expenses attributable to
Class A, Class B, and Class C shares and, if necessary, pay expenses normally payable by the Fund,
excluding interest expense and Acquired Fund Fees and Expenses, through the period ending February
29, 2012. The expense limit will maintain a total level of operating expenses (expressed as a percent of

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average net assets on an annualized basis) not to exceed 1.35% for Class A, 2.29% for Class B, and 

2.08% for Class C shares. This agreement can be terminated by mutual agreement of the parties 

(Principal Funds, Inc. and Principal Management Corporation). 

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 assumes conversion of the Class
B shares to Class A shares after the eighth year. 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:
	1 year	3 years	5 years	10 years
Class A	$689	$1,038	$1,412	$2,462
Class B	$742	$1,326	$1,849	$3,193
Class C	$321	$ 830	$1,477	$3,215
You would pay the following expenses if you did not redeem your shares:
	1 year	3 years	5 years	10 years
Class A	$689	$1,037	$1,412	$2,462
Class B	$242	$ 926	$1,649	$3,193
Class C	$221	$ 830	$1,477	$3,215

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. During the most recent 

fiscal year, the Fund’s portfolio turnover rate was 77.9% of the average value of its portfolio. 

Principal Investment Strategies 

Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of 

companies with small market capitalizations (those with market capitalizations similar to companies in the 

Russell 2000 Value Index (as of the most recent calendar year end, this range was between 

approximately $0.02 billion and $4.1 billion)) at the time of purchase. The Fund invests in value equity 

securities; the value orientation selection emphasizes buying equity securities that appear to be 

undervalued. The Fund will also invest in real estate investment trusts. 

Principal Risks 

The Fund may be an appropriate investment for investors seeking long-term growth and willing to accept 

volatile fluctuations in the value of their investment. 

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 

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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. 

Real Estate Investment Trusts ("REITs") Risk. A REIT could fail to qualify for tax-free pass-through of 

income under the Internal Revenue Code, and Fund shareholders will indirectly bear their proportionate 

share of the expenses of REITs in which the Fund invests. 

Underlying Fund Risk. As of the date of this prospectus, this fund was being used as an underlying fund 

of a fund of funds, and an underlying fund of a fund of funds may experience relatively large redemptions 

or investments as the fund of funds periodically reallocates or rebalances its assets. These transactions 

may cause the underlying fund to sell portfolio securities to meet such redemptions, or to invest cash from 

such investments, at times it would not otherwise do so, and may as a result increase transaction costs 

and adversely affect underlying fund performance. 

Value Stock Risk. The market may not recognize the intrinsic value of value stocks for a long time, or 

they may be appropriately priced at the time of purchase. 

Performance 

The following information provides an indication of the risks of investing in the Fund. The bar chart shows 

the investment returns of the Fund’s Class A shares for each full calendar year of operations for 10 years 

(or, if shorter, the life of the Fund). These annual returns do not reflect sales charges; if they did, results 

would be lower. The table shows, for each share class of the Fund and for the last one, five, and ten 

calendar year periods (or, if shorter, the life of the Fund), how the Fund’s average annual total returns 

compare to the returns of one or more broad-based market indices. Past performance (before and after 

taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated 

performance information online at www.principalfunds.com or by calling 1-800-222-5852. 

Class A and B shares commenced operations on June 28, 2005, and Class C shares were first sold on 

January 16, 2007. The returns for Class A, B, and C shares, for the periods prior to those dates, are 

based on the performance of the R-3 Class shares adjusted to reflect the fees and expenses of Class A, 

B, and C shares. The adjustments result in performance for such periods that is no higher than the 

historical performance of the R-3 Class shares. R-3 Class shares were first sold on December 6, 2000. 

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Average Annual Total Returns
For the periods ended December 31, 2010	1 Year	5 Years	10 Years
Class A Return Before Taxes	14.11%	-0.32%	6.60%
Class A Return After Taxes on Distributions	14.04%	-0.90%	5.60%
Class A Return After Taxes on Distribution and Sale of Fund Shares	9.27%	-0.43%	5.33%
Class B Return Before Taxes	14.68%	-0.42%	6.40%
Class C Return Before Taxes	18.90%	0.13%	6.64%
Russell 2000 Value Index (reflects no deduction for fees, expenses, or	24.50%	3.52%	8.42%
taxes)

After-tax returns are calculated using the historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax
situation and may differ from those shown. The after-tax returns shown are not relevant to investors who
hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Class A shares only and would be different for Class B and
Class C shares.
Management
Investment Advisor: Principal Management Corporation
Sub-Advisor(s) and Portfolio Manager(s):
Principal Global Investors, LLC
• Thomas Morabito (since 2000), Portfolio Manager
Purchase and Sale of Fund Shares
Purchase minimums per fund (some exceptions apply):
•	Initial Investment	$1,000
	• For accounts with an Automatic Investment Plan (AIP)	$100
•	Subsequent Investments	$100
	• For accounts with an AIP, the subsequent automatic investments must total $1,200 annually
	if the initial $1,000 minimum has not been met.
Effective March 1, 2010, Class B shares of the Fund are no longer available for purchase, except through
exchanges and dividend reinvestments.
You may purchase or redeem shares on any business day (normally any day when the New York Stock
Exchange is open for regular trading) through your Financial Professional; by sending a written request to
Principal Funds at P.O. Box 8024, Boston, MA 02266-8024; calling us at 1-800-222-5852; or accessing
our website (www.principalfunds.com).
Tax Information
The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination
of the two, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account.
Payments to Broker-Dealers and Other Financial Intermediaries.
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank,
insurance company, investment adviser, etc.), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These payments may create a conflict of
interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment, or to recommend one share class of the Fund over another share class.
Ask your salesperson or visit your financial intermediary’s website for more information.

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