元本
also: げんぽん
Meanings
1
Refers to the original amount of money invested or loaned, as opposed to interest or profit.
It took five years to recover the principal of the investment.
I'm looking for a financial product that guarantees the principal.
2
income-producing assets
A broader financial term for assets that generate income, such as rental properties or dividend-paying stocks. Less common than the principal sense.
He owns several apartments in the city center as income-producing assets.
Usage patterns
- 元本を保証するto guarantee the principal (of an investment)
This investment fund does not guarantee the principal.
- 元本を返済するto repay the principal (of a loan)
I'm repaying the loan's principal little by little every month.
- 元本が割れるfor the value to drop below the original principal invested
The stock price fell and the value dropped below the original principal.
- 元本を運用するto invest/manage the principal
That asset management company invests the principal safely.