Mutual Fund News : Principal Mutual Fund Launches Principal Large Cap Fund

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Principal Mutual Fund has launched Principal Large Cap Fund Principal Large Cap Fund, that offers investors a chance to invest in quality companies not just from India, which is one of the fastest developing economies in the world, but also in USA’s reputed brands that have global presence.

It is an Open-ended Equity scheme predominantly investing in equity and equity-related securities of large cap companies.

The investment objective of the scheme is to achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Under normal circumstances, 80% to 100% of the funds portfolio will be invested in equity and equity related instruments of Large Cap Companies. It can also invest up to 20% of its assets in equity & equity related instruments of Other than Large cap Companies. The fund may also invest upto 20% of the portfolio in foreign companies.

0% to 20% of its assets can be held in Debt and Money Market Instruments including units of debt & liquid schemes.

Typically, around 80-85% of the funds assets will be invested in Indian Companies diversified across 50 to 60 stocks, along with around 15% in Large Cap companies of US with market cap > $50 Billion.

Principal Large Cap Fund would endeavor to build a diversified portfolio of large cap companies across sectors. The universe for the large cap companies would be defined according to the extant SEBI guidelines (i.e. the universe of “Large Cap” shall consist of 1st to 100th company in terms of full market capitalization).

The stock selection process would follow a combination of a bottom up and top down approach with a focus on the fundamentals, current valuations and the growth potential of the company.

While analyzing companies, the fund manager may look at the company’s business model, its financial strength, the competitive advantages it enjoys, its return ratios etc.

The fund will identify companies through rigorous fundamental analysis using both proprietary in house and third party research.

The scheme’s performance will be benchmarked against Nifty 100 TRI (Total Return Index).

The fund will be managed by Mr Sudhir Kedia, whereas Mr Anirvan Sarkar will be the dedicated fund manager for managing overseas investments of the scheme.

The NFO opens for subscription on September 28, 2020 and closes on October 12, 2020. The scheme will reopen for continuous Sale and Repurchase from October 20, 2020.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).