Principal Mutual Fund on Monday launched the Principal Emerging Bluechip Fund, an open ended equity scheme, which will predominantly invest in small and mid cap companies to tap high growth opportunities offered by such stocks.
The fund opens for subscription on September 22 and will close on October 10. This fund will be benchmarked to the CNX Midcap Index. The scheme will offer both growth option and dividend option. For the purpose of maintaining liquidity or tap market opportunities the fund’s portfolio may also include large cap stocks.
The subscription for the scheme shall be allowed during the NFO at Rs 10 per unit and thereafter at NAV based prices upon re-opening for subscription. There is no minimum redemption amount. The minimum application amount is Rs. 5,000.
There is an entry load of 2.25 per cent, if investment is less than Rs 5 crore. However, there is no entry load for investment of Rs 5 crores and above, as well as for direct investments. There is an exit load of 2.25 per cent if redeemed before one year from the date of allotment.
Asset allocation pattern is as follows: equity & equity related instruments of mid cap companies 65 per cent - 95 per cent, equity & equity related instruments of small cap companies 5 per cent - 15 per cent, equity & equity related instruments of companies other than mid & small cap companies - 0 per cent-30 per cent.
The AMC reserves the right to invest in equity derivatives, not exceeding 50 per cent of the net assets and in foreign securities and derivatives subject to certain statutory regulations.
Said Rajat Jain, chief investment officer, Principal Mutual Fund, “For a long term investor, mid and small cap stocks are a good bet as they offer higher growth opportunity. Mid caps can be volatile; however volatility can be neutralised by a longer investment horizon without significantly impacting the return expectations. In the current scenario quality mid caps are available at reasonable valuations even after factoring in the current volatility in the business environment and we intend to capitalise on such opportunities through this fund.”
The fund will be managed by Pankaj Tibrewal.
The fund opens for subscription on September 22 and will close on October 10. This fund will be benchmarked to the CNX Midcap Index. The scheme will offer both growth option and dividend option. For the purpose of maintaining liquidity or tap market opportunities the fund’s portfolio may also include large cap stocks.
The subscription for the scheme shall be allowed during the NFO at Rs 10 per unit and thereafter at NAV based prices upon re-opening for subscription. There is no minimum redemption amount. The minimum application amount is Rs. 5,000.
There is an entry load of 2.25 per cent, if investment is less than Rs 5 crore. However, there is no entry load for investment of Rs 5 crores and above, as well as for direct investments. There is an exit load of 2.25 per cent if redeemed before one year from the date of allotment.
Asset allocation pattern is as follows: equity & equity related instruments of mid cap companies 65 per cent - 95 per cent, equity & equity related instruments of small cap companies 5 per cent - 15 per cent, equity & equity related instruments of companies other than mid & small cap companies - 0 per cent-30 per cent.
The AMC reserves the right to invest in equity derivatives, not exceeding 50 per cent of the net assets and in foreign securities and derivatives subject to certain statutory regulations.
Said Rajat Jain, chief investment officer, Principal Mutual Fund, “For a long term investor, mid and small cap stocks are a good bet as they offer higher growth opportunity. Mid caps can be volatile; however volatility can be neutralised by a longer investment horizon without significantly impacting the return expectations. In the current scenario quality mid caps are available at reasonable valuations even after factoring in the current volatility in the business environment and we intend to capitalise on such opportunities through this fund.”
The fund will be managed by Pankaj Tibrewal.
Posts
No comments:
Post a Comment