Principal Mutual Fund, today, announced the launch of new fund offer (NFO) for Principal Small Cap Fund- An open-ended equity scheme predominantly investing in Small Cap stocks. This scheme aims to identify and invest in smaller companies that have the potential to generate higher returns over a longer period. The NFO opened today, April 22nd & will close on May 6th, 2019.
Principal Small Cap Fund offers facilities like – Smart Trigger Enabled Plan (STEP) & Auto Trigger. STEP aims to protect against sharp fall in market as it invests in a staggered manner to mitigate market-timing risk. STEP is an exclusive facility which is available only during the NFO.
Through STEP facility, investors can spread their investment in Principal Small Cap Fund in 4 equal monthly instalments and only 25% of the application money is invested upfront in Principal Small Cap Fund, remaining 75% is invested in Principal Cash Management Fund. If the market falls 3% from the date of allotment, the STEP gets activated and it automatically shifts 25% of the initial investment to Principal Small Cap Fund. If there are no fluctuations in the market, the switch takes place at the following month end from Principal Cash Management Fund to Principal Small Cap Fund.
Auto Trigger facility allows investors to set a target rate of return and it automatically shifts appreciated amount to another fund when the target rate is achieved. Investors could use this facility to automatically rebalance their exposure to Small Caps.
Commenting on the launch, Mr. PVK Mohan, Head of Equity, Principal Mutual Fund, “Small-cap funds have the potential of becoming excellent wealth creators over the long-term period. Their exposure to large organised sectors gives them the potential to scale up. Besides, the companies in sectors where large & mid cap stocks have limited presence is an added advantage. In addition, STEP Facility helps investors to reduce the market timing related risk as investment in Principal Small Cap Fund is made in 4 instalments”
Minimum Application Amount:
• New Investor – Rs.5,000/- for both Dividend and Growth Option and any amount
• thereafter under each Plan/Option
• STEP (available only during NFO)– Rs 25000/-
• Systematic Investment Plan: Minimum twelve installments of Rs. 500/- each
• Systematic Transfer Plan: Minimum Six instalments of Rs. 1,000/- each
• Regular Withdrawal Plan: Minimum Six installments of Rs.500/- each
About Principal Mutual Fund
Principal Mutual Fund is managed by Principal Asset Management Private Limited* which is part of the Principal Financial Group – A global investment management leader headquartered in Des Moines, Iowa, US. In India, it brings on board the financial strength and global experience of over 139 years in asset accumulation of Principal Financial Group.
It offers products that provide a mix of short-term to mid-term to long-term financial growth. Guided by integrity, trust and knowledge, the team applies a disciplined and research-based approach to design investment solutions to suit various income levels and portfolios. To find out more, visit at www.principalindia.com