The Principal Arbitrage Fund - Regular Plan - Growth is an open-ended scheme offered by Principal Mutual Fund, a wholly owned subsidiary of the Principal Financial Group, the world’s leading investment managers. The Principal Arbitrage Fund invests in arbitrage opportunities in the cash and derivative segment.
The regular plan of the scheme involves an intermediary (broker, agent, distributor, etc.) and hence, may have a slightly higher expense ratio than the direct plan. The growth option allows investors to attain capital appreciation on completion of the scheme period.
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 allocated to debt and money market securities.
Key Features of the Scheme
The Principal Arbitrage Fund is ideal for investors who wish to grow their capital through arbitrage opportunities in the equity market. The scheme exhibits the below 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 if units are redeemed after 30 days from unit allotment date |
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 Association of Mutual Funds in India (www.amfiindia.com). 2 leading newspapers with nationwide circulation 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
- Attractive returns - The Principal Arbitrage Fund invests in arbitrage opportunities within the equity segment to produce attractive returns for the investor.
- Moderately low risk - Investors with a low-risk appetite can invest in this scheme and grow their capital over a long term.
- Liquidity - The Principal Arbitrage Fund allows investors to redeem and purchase units on any given business day at applicable NAVs.
Special benefits - Features such as SIP, STP, SWP, Switching, Trigger facility, etc., offered by the Principal Arbitrage Fund make it a lucrative investment tool.
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