Principal Asset Management has launched a new fund offer (NFO) Principal Large Cap Fund, an Open-ended Equity scheme predominantly investing in Large Cap stocks. The NFO will open for subscription from 28th September 2020 to 12th October 2020. The fund will allocate 80-85% of its corpus to the top 100 Indian Large Cap stocks by market cap and actively invest up to 15% in US stocks with a market cap higher than USD 50 Billion. The large cap fund will aim to provide growth from Indian and US economies and depreciating currencies.
Highlights of the Fund:
- First Large Cap Fund in India that will invest in Indian and US companies
- 80% to 85% investment in top 100 Indian Large Cap companies by market cap
- Up to 15% of corpus will be allocated to US Large Cap Companies, with a market cap higher than USD 50 Billion
- Diversified portfolio of 50 to 60 companies, with focus on compounding businesses
- Opportunity to gain from growth in the Indian and US economies and depreciating currencies
The fund will be benchmarked against the composite index of Nifty 100 Total Return Index (NIFTY100 TRI). The Principal Large Cap Fund aims 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, with emphasis on risk management to reduce portfolio volatility. The fund will draw from Principal's proprietary global research expertise and experience and its robust investment framework for selection of US stocks.
Bharat Ravuri, Managing Director, Principal Asset Management said, "Principal Large Cap Fund is the first large cap fund in India that will enable investors to widen their investment horizon and tap into the investment opportunities provided by Large Cap Indian and US companies, especially those who are expected to emerge stronger from the changing economic landscape and have a higher growth and comparatively lower risk quotient. A globally diversified portfolio will help investors to take advantage of market cycles in two different economies and partake in the returns of the companies in the US, while also trying to mitigate the country risk."
"Large cap funds have comparatively delivered better returns with lesser volatility over the long term. Our research indicates that a composite Index of 15% of the S&P 500 (INR) Index and 85% of the NIFTY100 Index outperforms the Indian indexes in multiple trailing periods and has lower volatility. The allocation to US large Cap companies would comprise up to 15 stocks around 4 to 6 sectors and include stable and high growth businesses with a global brand franchise,' added Rajat Jain, Chief Investment Officer, Principal Asset Management.
"This offering is in line with Principal Mutual Fund's commitment to provide innovative and disruptive customer-centric investment solutions that will foster financial security by helping people build, protect and grow their investments, thereby achieving their financial goals." added Mr. Ravuri.
The Principal Large Cap Fund offers two unique facilities like - SMART & My Gain. SMART aims to protect investors against a sharp fall in markets as it invests in a staggered manner to mitigate risks from timing the market. My Gain facility allows investors to set a target rate of return and automatically shifts the appreciated amount to any Principal fund of their choice, when the target rate is achieved.
Minimum Application Amount
- New Investor Rs. 5,000/- for both Dividend and Growth Option and any amount thereafter under each Plan/Option
- SMART - Rs. 25,000/-
- Systematic Investment Plan: Minimum twelve instalments of Rs. 500/each
- Systematic Transfer Plan: Minimum Six instalments of Rs. 1,000/each
- Regular Withdrawal Plan: Minimum Six instalments of Rs. 500/each