Principal Mutual Fund announces the launch of Principal Large Cap Fund- NFO. The investment objective of the scheme is to generate long term capital appreciation for investors by making investments in a diversified portfolio of equity & equity related securities of the large cap companies. The scheme will also invest in US large cap stocks to offer potential higher returns & lower volatility.

NFO for the scheme opens on 28th September 2020 and closes on 12th October 2020.

Features of the scheme:

First Large Cap Fund in India offering a portfolio of Indian and Overseas large-cap companies.
80 to 85 percent in Indian Equities with at least 80 percent in Large Caps.
Up to 15% of the assets in US Large Cap.
Diversified portfolio of 50-60 stocks.
The portfolio will follow a sector-agnostic approach for investments.
For stock selection, earnings growth & return ratios will be the preferred metrics.
Quality of management & their performance track record will guide the investment decisions.

Benefits Principal Large Cap Fund NFO

Portfolio of growth-oriented quality companies with strong fundamentals.
Exposure to top 100 Indian companies & top US companies with market cap greater than $50 billion.
A composite portfolio of Indian Large-cap & foreign equities has the potential to offer enhanced returns on investment.
Geographical diversification lowers volatility in the portfolio.
Potential rupee depreciation could boost returns on investments through foreign equity exposures.

Investment Approach

The scheme will focus on professionally managed and process-driven businesses.
Stock selection will be based on operating free cash flow generation.
The scheme will prefer sectors/industries with high or growing opportunities.
Aims to invest in Large companies with sound balance sheets and businesses that are anticipated to benefit from the ongoing global turmoil and changing economic scenarios.

Suitability

This scheme is ideally suitable for those investors who are-

Seeking long-term capital growth
Considering investments in equity and equity-related instruments of the large-cap companies.

About the Scheme

Name of Scheme	Principal Large Cap Fund NFO
Fund House	Principal Mutual Fund
Asset Management Company	Principal Asset Management Private Limited
NFO Period	28th September 2020 to 12th October 2020
Fund Managers	Mr. Sudhir Kedia & Mr. Anirvan Sarkar
Type of Scheme	An open ended scheme investing predominantly in securities of large cap companies.
Investment Objective	The scheme’s investment objective is to generate long term capital appreciation for it’s investors by investing in a diversified portfolio of equity & equity related securities of large cap companies.
Benchmark	NIFTY 100 TRI
Exit Load	If units are redeemed or switched out within 365 days, then: Nil - for upto 24% of the total units held. 1%- On more than 24% of the total units. If units are redeemed after 365 days, then Nil.
Investment Plans Available	Regular Plan Direct Plan
Options	Growth Dividend
Facilities	SMART* My Gain*

Application Amount

Type	Minimum Application Amount	Minimum Installments
New Investor	Rs.5,000 for growth & dividend and any amount thereafter.
SMART Facility	Rs.25,000
Systematic Investment Plan	Rs.500 each	12
Systematic Transfer Plan	Rs.1,000 each	6
Regular Withdrawal Plan	Rs.500 each	6

FAQs

Q.1 What is the SMART facility in Principal Mutual Fund?

A. SMART is a unique offering by the Principal mutual fund which can be availed only during the NFO period. This facility allows investments into the scheme in a staggered manner. If smart facility is availed,

Then 25% of the amount will be invested in the Principal Large Cap Fund and 75% into the Principal Cash Management Fund.
The smart facility gets activated once the market falls below 3% from the date of unit allotment wherein 25% of the investment amount is deployed into the Principal Large Cap Fund.
In case the market doesn’t fall, the switch from Cash Management Fund to Large Cap Fund will take place at the month end.
And if the SMART facility has been activated during the month owing to market fall, then the month end switch will be deactivated.

Q.2 What is the My Gain facility in Principal Mutual Fund?

A. My Gain facility lets the investors specify a target rate of return for facilitating an auto trigger wherein the appreciated amount in the fund will be moved to another scheme chosen by the investor.

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