Principal Mutual Fund has launched a New Fund Offer (NFO) for Principal Small Cap Fund, an open-ended equity scheme which will primarily invest in the stocks of small cap companies. The NFO period begins on April 22, 2019 and will close on May 6, 2019. This scheme which aims to create long-term capital growth for its investors will reopen for continuous purchases and redemptions on May 15, 2019.
Asset Allocation of Principal Small Cap Fund
Under normal circumstances, the Principal Small Cap Fund will invest its assets in the following manner:
| Asset Class | Asset Allocation | |
| Minimum | Maximum | |
| Equity and equity related instruments of small cap companies | 65% | 100% |
| Equity and equity related instruments of companies other than small cap companies | 0% | 35% |
| Debt and money market instruments | 0% | 35% |
This small cap scheme from Principal Mutual Fund will not participate in repo/reverse repo in corporate debt securities and credit default swaps. However,it may engage in short selling of securities.
Benchmark of Principal Small Cap Fund
The performance of Principal Small Cap Fund will be benchmarked against NIFTY Small Cap 100 Total Return Index (TRI). It is an appropriate benchmark for the scheme which reflects the behaviour and performance of the small capitalisation equity segment of the financial market. The return details of the benchmark are as follows:
| Index | 1 Year Return | 5 Year Return |
| NIFTY Small cap 100 Total Return Index (TRI) | -13.52% | 13.82% |
(Data as on March 29, 2019; Source: NSE)
Fund Managers of Principal Small Cap Fund
The Principal Small Cap Fund will be jointly managed by Mr. P.V.K. Mohan and Mr. Siddarth
Mohta. Another scheme being jointly managed by the duo is Principal Multi Cap Growth Fund. The return details of this scheme are as follows:
| Schemes | 1 Year Return | 3 Year Return | 5 Year Return |
| Principal Multi Cap Growth Fund | 2.79% | 16.94% | 16.63% |
(Data as on March 30, 2019; Source: Pulse Labs)
Key information about Principal Small Cap Fund NFO
| NFO period | April 22, 2019 – May 6, 2019 |
| Minimum application amount | Lump sum – Rs. 5,000
SIP: Rs. 500 (minimum 12 instalments) |
| Exit load | Nil for redemption/ switch out of units up to 25% of the units allotted (the limit) if redeemed/ switched on or before 1 year from the date of allotment.
1% – On redemption in excess of 25% of the limit stated within 1 year of unit allocation. Nil on redemption of units held for over 1 year from the date of unit allocation. Redemption of units would be done on First in- First out (FIFO) basis |
| Benchmark | NIFTY Small Cap 100 Total Return Index (TRI) |
| Fund Manager | P.V.K. Mohan and Siddarth Mohta |
1 Comment Comments
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