Mumbai, December 6th, 2019:Principal Mutual Fund today announced the launch of its new fund offer (NFO) of Principal Midcap Fund – An open-ended equity scheme predominantly investing in midcap stocks. This scheme aims to generate long term capital appreciation by investing in equity and equity related instruments of midcap companies. The NFO opened today and will close on December 20th, 2019. Expressing his thoughts on the launch Mr. Lalit Vij, Managing Director, Principal Mutual Fund said “We believe that this is the opportune time to consider midcap investing and Principal Asset Management with its right investment capabilities is well placed to offer a rewarding midcap investing experience for investors”.
Principal Midcap Fund also offers features like SMART and My Gain. SMART is an exclusive facility that is available during the NFO period and it staggers the lumpsum investmentto mitigate market-timing risk. Through the SMART facility, investors can stagger their investment in Principal Midcap Fund into 4 equal instalments, only 25% of the application money is invested upfront in Principal Midcap Fund while the remaining 75% is invested in Principal Cash Management Fund. If the benchmark index falls 3% from the date of allotment, the SMART facility gets activated and 25% of the initial investment is automatically shifted to Principal Midcap Fund else the switch takes place from Principal Cash Management Fund to Principal Midcap Fund at the month end. In a nutshell, this facility helps reduce the risk of timing the market.
My Gain facility allows investors to set a target rate of return to activate auto trigger which automatically shifts the amount of appreciation to another fund of the investor’s choice when the target return is achieved.
Mr. Ravi Gopalakrishnan, Head – Equity, Principal Mutual Fund, said “Midcaps are great multipliers in the long term despite their short-term volatility. Also, they possess greater odds to outperform large caps. Right stock selection in midcaps, therefore, is the key to wealth creation. With focus on companies with higher cash flows, corporate governance, unique business models and reasonable risk, Principal Midcap Fund offers a good investment experience that is backed by expertise’
Minimum Application Amount:
- New Investor – Rs.5,000/- for both Dividend and Growth Option and any amount
thereafter under each Plan/Option
- SMART (available only during NFO) – Rs. 25000/-
- Systematic Investment Plan: Minimum twelve installments 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