Principal Mutual Fund is managed by Principal Pnb Asset Management Company Private Limited. The trustee to the mutual fund is Principal Trustee Company Private Limited. The mutual fund is a joint venture of the Punjab National Bank (PNB) and the Principal Financial Group (one of the leading investment managers in the world).
The Principal Arbitrage Fund is an open-ended scheme that invests in arbitrage opportunities.
Investment Objectives of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment
The main objective of investment of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment scheme is to facilitate the generation of income and capital growth through investments predominantly made in arbitrage opportunities in the segment of cash and derivatives of cash of the equity markets. The balance is usually invested in debt and money market securities. However, there is no assurance for the realisation of the investment objectives.
Key Features of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment
The key features of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment scheme can be listed as follows:
|
Type of fund |
An open-ended scheme that predominantly invests in arbitrage opportunities. |
|
Plans available |
|
|
Options under each plan |
|
|
Risk |
Moderately Low |
|
Systematic Investment Plan (SIP) |
Available |
|
Systematic Transfer Plan (STP) |
Available |
|
Regular Withdrawal Plan |
Available |
Investment Amount for the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment
|
Minimum application amount |
Rs.5,000 and in multiples of Re.1 subsequently |
|
Minimum additional investment |
Rs.1,000 and in multiples of Re.1 subsequently |
|
Minimum instalment for Systematic Investment Plan (SIP) |
Minimum amount: Rs.500 per instalment and in multiples of Re.1 subsequently Minimum instalments: 12 |
|
Minimum instalment for Systematic Withdrawal Plan (SWP) |
Minimum amount: Rs.500 per instalment and in multiples of Re.1 subsequently Minimum instalments: 6 |
|
Minimum instalment for Systematic Transfer Plan (STP) |
Minimum amount: Rs.1,000 per instalment and in multiples of Re.1 subsequently Minimum instalments: 6 |
|
Entry Load |
N/A |
|
Exit Load |
|
Asset Allocation for the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment
Indicative asset allocation:
|
Type of security |
Indicative Allocations (percentage of total assets) |
Risk Profile |
|
|
Minimum |
Maximum |
High/Medium/Low |
|
|
Equity and instruments related to equity |
65% |
90% |
Medium to High |
|
Derivatives of equity |
65% |
90% |
Medium to High |
|
Debt and Money market instruments and fixed income derivatives |
10% |
35% |
Low |
When arbitrage opportunities are not sufficient in the equity and its derivatives markets:
|
Type of security |
Indicative Allocations (percentage of total assets) |
Risk Profile |
|
|
Minimum |
Maximum |
High/Medium/Low |
|
|
Equity and instruments related to equity |
0% |
65% |
Medium to High |
|
Debt and Money market instruments and fixed income derivatives |
10% |
35% |
Medium to High |
|
Short term debt and money market securities that do not exceed the tenure of 91 days |
0% |
100% |
Low |
NAV Disclosure and Benchmark of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment
The Net Asset Value or NAV of each unit under the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment scheme is calculated and published by the end of every business day. It is calculated with the help of the guidelines prescribed by the SEBI (Mutual Funds) Regulations. As per the guidelines, the value of the net assets of the scheme is divided by the total number of the units that are outstanding under the scheme on the date of evaluation. The acquired result is the NAV of the units under the scheme.
The benchmark of the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment scheme is CRISIL Liquid Fund Index.
Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment Fund Manager
The Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment scheme is managed by Mr. Rajat Jain. He is the Chief Investment Officer and he has been managing the fund since April 2016.
Why should you invest in the Principal Arbitrage Fund - Regular Plan - Dividend Reinvestment?
Principal Mutual Fund is backed by the Principal Financial Group (which has more than 130 years of expertise in fund management). It manages the assets of more than 4 lakh customers. This management is done through 102 investor centres which are spread across the country. If the investment objectives of the scheme match the investment needs of an investor, it is a great option to invest in.
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