The Principal Arbitrage Fund - Direct Plan - Growth is an open-ended scheme offered by Principal Mutual Fund. Principal Mutual Fund is wholly owned by the Principal Financial Group, world’s leading asset managers. The Principal Arbitrage Fund is an open-ended scheme that invests in arbitrage opportunities in the cash and derivative segment.
Investment Objective
To produce capital gains and income for the investor by investing majorly in arbitrage opportunities in the derivative and cash segment of the equity market. A small portion of the investments will also be made in debt and money market securities.
Key Features of the Scheme
The Principal Arbitrage Fund is ideal for investors who wish to receive income over a short term and exhibits the following features:
|
Type of Fund |
An open-ended scheme |
|
Plans Available |
Regular Plan and Direct Plan |
|
Options under each Plan |
The dividend option has payout, sweep, and reinvestment facility |
|
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 in multiples of Re.1 thereafter |
|
Minimum Additional Investment |
Rs.500 or 50 units or account balance whichever is less |
|
Minimum installment for Systematic Investment Plan (SIP) |
Rs.500 (minimum 12 instalments) and in multiples of Re.1 thereafter |
|
Minimum installment for Systematic Withdrawal Plan (SWP) |
Rs.500 and in multiples of Rs.100 (minimum 6 instalments) |
|
Entry Load |
Not Applicable |
|
Exit Load |
Investors redeeming units before 30 days from unit allotment date will be charged an exit load of 0.50%. No exit load will be charged thereafter |
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
The Net Asset Value (NAV) of the Principal Arbitrage Fund is obtained by dividing its net assets by the number of outstanding units on the date of valuation. The computation of the NAV will be done up to 4 decimal places and disclosed on every business day by 9:00 p.m.
The fund house will update the NAV of the scheme on its website (www.principalindia.com) and on the website of AMFI (www.amfiindia.com). 2 leading newspapers will also publish the scheme’s NAV on a daily basis.
Benchmark: CRISIL Liquid Fund Index
Fund Manager
Mr. Rajat Jain
The Principal Arbitrage Fund is managed by Mr. Rajat Jain who has been managing it since 2 years. Mr. Jain has over 28 years of experience in portfolio management and currently is the Chief Investment Manager of Principal Pnb Asset Management Co. Pvt. Ltd. He has previously worked with SBI Mutual Fund. The other schemes managed by him include Principal Global Opportunities Fund, Principal Asset Allocation Fund of Funds, and Principal Nifty 100 Equal Weight Fund.
Why you should invest in the Principal Arbitrage Fund
- Moderately low risk - Investors who wish to invest in a moderately low-risk fund can invest in this scheme. Though it offers moderately low risk, it has a potential to yield optimal returns and aid investors in wealth creation.
- Multiple investment choices - The Principal Arbitrage Fund offers regular and direct plans wherein the direct plan offers a low expense ratio when compared with the regular plan. The scheme also offers growth and dividend options where the growth option offers capital appreciation while dividend option offers a regular income to the investor.
- Liquidity - Being an open-ended scheme, investors can purchase or redeem units of the Principal Arbitrage Fund at applicable NAVs on any business day.
Added benefits - Many extra benefits offered by the scheme such as SIP, STP, SWP, Switching, Trigger facility, etc. make the scheme lucrative as an investment tool.
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