Principal Arbitrage Fund - Regular Plan - Monthly Dividend is an open-ended equity scheme that makes investments in arbitrage opportunities. The scheme is offered by Principal Mutual Fund, which is managed by Principal PNB Asset Management Company Private Limited, and the trustee of the fund house is Principal Trustee Company Private Limited.
Investment Objective of Principal Arbitrage Fund - Regular Plan - Monthly Dividend
The investment objective of Principal Arbitrage Fund - Regular Plan - Monthly Dividend is to provide capital appreciation as well as income to investors by investing mainly in arbitrage opportunities in the equity markets’ cash and derivative segments, and in arbitrage opportunities accessible within the derivative segment. The scheme also makes investments in money market and debt securities.
Key Features of Principal Arbitrage Fund - Regular Plan - Monthly Dividend
Some of the significant features of Principal Arbitrage Fund - Regular Plan - Monthly Dividend are as indicated in the table below:
| Type of fund | Open-ended equity scheme |
| Plans available |
|
| Options under each plan | Both plans offer the following two options:
|
| Risk | Moderately Low |
| Systematic Investment Plan | Available |
| Systematic Transfer Plan | Available |
| Systematic Withdrawal Plan | Available |
Investment Amount for Principal Arbitrage Fund - Regular Plan - Monthly Dividend
The following are the details regarding the investment amount and loads:
| Minimum application amount | Rs.5,000 and in multiples of Re.1 thereafter |
| Minimum additional investment | Rs.1,000 |
| Minimum instalment for Systematic Investment Plan (SIP) | Rs.500 per month for at least 12 months |
| Entry Load | Not Applicable |
| Exit Load | In case of redemptions within 30 days from the date on which the units were allotted, the exit load applicable will be 0.50%. In case of redemptions after 30 days from the date on which the units were allotted, there will be no exit load. |
Asset Allocation for Principal Arbitrage Fund - Regular Plan - Monthly Dividend
| Instruments | Allocations (Percentage of total assets) | Risk Profile |
| Equity and equity-related securities of Midcap companies | 65% to 90% | Medium to High |
| Equity derivatives | 65% to 90% | Medium to High |
| Money market and debt securities and fixed income derivatives | 10% to 35% | Low |
NAV Disclosure and Benchmark for Principal Arbitrage Fund - Regular Plan - Monthly Dividend
The Net Asset Value of Principal Arbitrage Fund - Regular Plan - Monthly Dividend will be calculated on a daily basis and will be published in a minimum of two daily newspapers that are circulated across India. The Asset Management Company will also update the Net Asset Value on the official website of the Association of Mutual Funds in India as well as the website of the fund house by 9:00 p.m. every working day.
Principal Arbitrage Fund - Regular Plan - Monthly Dividend Fund Manager
Principal Arbitrage Fund - Regular Plan - Monthly Dividend has been managed by Mr. Rajat Jain since April 2016.
Why you should Invest in Principal Arbitrage Fund - Regular Plan - Monthly Dividend
Principal Arbitrage Fund - Regular Plan - Monthly Dividend is ideal for investors who are looking for short-term income through investment in arbitrage opportunities between cash and derivative markets as well as arbitrage opportunities within the derivative segment.
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