Principal Large Cap Fund NFO

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 SchemePrincipal Large Cap Fund NFO
Fund HousePrincipal Mutual Fund
Asset Management CompanyPrincipal Asset Management Private Limited
NFO Period28th September 2020 to 12th October 2020
Fund ManagersMr. Sudhir Kedia & Mr. Anirvan Sarkar
Type of SchemeAn open ended scheme investing predominantly in securities of large cap companies.
Investment ObjectiveThe 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.
BenchmarkNIFTY 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

TypeMinimum Application AmountMinimum Installments
New InvestorRs.5,000 for growth & dividend and any amount thereafter. 
SMART FacilityRs.25,000 
Systematic Investment PlanRs.500 each12
Systematic Transfer PlanRs.1,000 each6
Regular Withdrawal PlanRs.500 each6

 

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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