Principal Arbitrage Fund(MDR)-Direct Plan

Principal Arbitrage Fund(MDR)-Direct Plan
Dividend Yearly
0.06  (As on 17-09-2019)
Category
52-week NAV high
11.50  (As on 09-12-2019)
52-week NAV low
11.02  (As on 12-12-2018)
Expense
0.51%  (As on 30-11-2019)

Performance

1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
Fund Returns 0.21 0.70 1.54 3.79 1.59 2.91 - - -
Scheme Details
Fund Type
Open Ended
Investment Plan
Dividend
Bonus
0
Launch Date
Apr 21, 2016
Last Dividend
0.06
Minimum Investment
5000

The Principal Financial Group Limited, one of the leading investment managers in the world hosts the popular Principal Mutual Funds company. The latter is known for providing unique investment solutions to a huge number of retail and institutional investors across the country. One among the well-performing open-ended schemes offered by this firm is the Principal Arbitrage Fund. By making strategic investment in the arbitrage opportunities of cash and derivative segment, this mutual fund aims to provide regular flow of cash to the investors while also building their capital.

This fund has both direct and regular investment plans. While the regular plan involves brokers/distributors, through the direct plan the investors can invest on their own thus eliminating any third-party involvement. This also eliminates the distributor costs and lowers the expense ratio compared to the regular plan. The dividend reinvestment option helps the investors reinvest their dividends in the scheme to receive further returns.

Investment Objective of Principal Arbitrage Fund

This mutual fund scheme targets to produce income as well as capital appreciation for the unitholders through investments made in arbitrage opportunities of derivative and cash segment of the equity market. This fund invests some part of its corpus in debt and money market securities as well.

Key Features of Principal Arbitrage Fund

The Principal Arbitrage Fund is perfect for investors who want to earn money through their mutual fund investment in arbitrage opportunities in the equity market while also slowly building wealth over a long investment tenure. The scheme comes with the features that are lined down below:

Type of Fund

An open-ended mutual fund scheme which makes investment in the arbitrage opportunities of derivatives and cash segment of the equity market

Plans Available

Regular Plan and Direct Plan

Options under each Plan

  1. Growth Option
  2. Dividend Option

The dividend option under this scheme comes with payout, reinvestment, and sweep facilities

Risk

Moderately Low

Systematic Investment Plan

Available

Systematic Transfer Plan

Available

Systematic Withdrawal Plan

Available

Investment Amount for Principal Arbitrage Fund

Minimum Application Amount

Rs.5,000 per application and thereafter in multiples of Re.1

Minimum Additional Investment

Rs.500 or 50 units or account balance whichever is less

Minimum instalment for Systematic Investment Plan (SIP)

Rs.500 (minimum 12 instalments) and thereafter in multiples of Re.1

Minimum instalment for Systematic Withdrawal Plan (SWP)

Rs.500 and in multiples of Rs.1 thereafter (minimum 6 instalments)

Entry Load

Not Applicable

Exit Load

0.50% - In case of redemption or switching out of the units before 30 days from the unit allotment date, an exit load will be applicable.

Nil - In case of redemption or switching out of the units after completion of 30 days from the unit allotment date, no exit load will be applicable.

Asset Allocation for Principal Arbitrage Fund

Instruments

Indicative Allocation

Percentage of total assets

Risk Profile

Minimum

Maximum

Equity and its related securities

65%

90%

Medium to High

Equity derivatives

65%

90%

Medium to High

Money market and debt securities including margin for derivatives

10%

35%

Low

NAV Disclosure and Benchmark for Principal Arbitrage Fund

NAV: The Net Asset Value (NAV) of the Principal Arbitrage Fund is computed by dividing the net assets by the number of units that are outstanding on the day of valuation. The computation of NAV is done up to 4 decimal places. The final NAV will be updated on the official website of the fund house (www.principalindia.com) and the AMFI website (www.amfiindia.com) by 9:00 p.m. of every business day. The NAV is also published in 2 well-known newspapers with nationwide circulation on an everyday basis.

Liquidity: The unitholders can conduct selling and redemption of their units on every working day at the applicable rates of NAV for the day. Since it is an open-ended mutual fund scheme, it imposes no restriction on buying, selling, and redemption of the units. The fund house pays the dividends to the unitholders within 10 days of accepting the redemption request officially.

Benchmark: Principal Arbitrage Fund assess its performance against its benchmark index, the CRISIL Liquid Fund Index. The outcomes of this fund is benchmarked on the basis of the gains and losses of the latter.

Principal Arbitrage Fund - Fund Manager

Mr. Rajat Jain who has more than 28 years of experience in portfolio management is the fund manager of the Principal Arbitrage Fund. The fund has been managed by him for past 2 years. Apart from being the manager of this fund, he is also the Chief Investment Manager of the Principal Pnb Asset Management Co. Pvt. Ltd. In the past, he has been working with SBI Mutual Fund. The Principal Asset Allocation Fund of Funds, the Principal Nifty 100 Equal Weight Fund, and the Principal Global Opportunities Fund are the other funds of this company that are managed by him.

Why should you invest in the Principal Arbitrage Fund - Direct Plan – Dividend Reinvestment?

The Principal Arbitrage Fund - Direct Plan – Dividend Reinvestment should be considered by the investors for the below given reasons:

Reliable and trustworthy: The Principal Mutual Funds is a well-known name in the mutual fund sector in India due to its reliability and trustworthiness. Hence, you can vouch for this company and invest in its schemes to get good investment benefits.

Chances of high return: Since this fund invests in arbitrage opportunities within the growth-oriented equity segment you have relatively higher chances of getting good returns from your investment.

Facility of reinvesting dividend: Investors who don’t want to withdraw the dividends can invest in this scheme as it allows to reinvest the dividend amount in any other scheme of the fund for future returns.

This scheme is good for investors having a low-risk appetite. If you don’t want to take high risk and still want to get best returns this makes an ideal option.

Direct investment option: This fund scheme offers you the facility to invest online without taking the help of any intermediary. Thus, it not only removes the need of any third-party but also helps you to save a reasonable amount of money on distributor cost.

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