Principal CMF - Liquid(MD)

Principal Mutual Fund is a part of the Principal Financial Group, a global investment management leader headquartered in the US. Since 2000 this fund house has been offering quality investment solutions to the Indian investors under the guidance of its parent company which has 130 years of asset accumulation experience. Currently, it is serving more than 5 lakh customers with the help of approx. 20,000 empanelled distributors positioned in various parts of the country.

The Principal Cash Management Fund is an open-ended liquid scheme offered by the Principal Mutual Fund. The scheme offers both direct and regular investment plans under which it has growth and dividend options. While investing, the subscribers can go for daily, weekly, or monthly dividend options. For investors subscribing to the Monthly Dividend facility, the frequency of dividend distribution will be on a monthly basis. The Principal Cash Management Fund - Liquid Option - Monthly Dividend scheme is suitable for investors who want a steady income over a short investment period at low risk.

Investment Objective of Principal Cash Management Fund

The investment objective of Principal Cash Management Fund is to generate high income for the investors for a short-term maturity period of 91 days through investments made in investment grade debt instruments and money market securities at a low associated risk. The scheme mainly targets to preserve the capital while maintaining liquidity.

Key Features of Principal Cash Management Fund

Investment Amount for Principal Cash Management Fund

The fund has varied investment amounts for the plans that it offers. Here are the investment amounts that investors can invest under various plans of this scheme:

Asset Allocation for Principal Cash Management Fund

NAV Disclosure and Benchmark for Principal Cash Management Fund – Monthly Dividend

NAV - The redemption or switch-out of units under this scheme is based on the Net Asset Value (NAV) of the units for the specific business day and this is why the fund house calculates the NAV on every business day. In order to obtain the NAV, the total units of the funds are divided by the number of units that are outstanding on the same day. Once the computation is done, the NAV is updated on the official website of the fund house at www.principalindia.com and the Association of Mutual Funds in India (AMFI) respectively by 9:00 p.m. in the evening of the same day. Under the Dividend Option of the scheme, the undistributed part of the dividend remains in the option and is reflected in the NAV, on a regular basis.

Liquidity – Since the Principal Cash Management fund is a liquid fund in nature it offers a high level of liquidity to the investors. The units can be purchased, redeemed, and switched out on all the business days. It allows investors to invest their money for a very short investment tenure of not more than 91 days thus offering good liquidity.

Benchmark Index - CRISIL Liquid Fund Index is the benchmark index of the Principal Cash Management Fund. The profits and gains of this fund are evaluated on the basis of the performance of this index.

Principal Cash Management Fund – Fund Manager

Mr. Pankaj Jain is the fund manager of the Principal Cash Management Fund since January 2012. He has been efficiently managing this fund for more than 6 years. Having 16 years of experience in fixed income markets management, he implements effective strategies to produce high returns for the subscribers. Other than the Principal Cash Management Fund he is also managing the Principal Low Duration Fund, Principal Equity Savings Fund, and Principal Ultra Short Term Fund.

Why Should You Invest in the Principal Cash Management Fund – Liquid Option - Monthly Dividend?

The Principal Cash Management Fund Liquid Option - Monthly Dividend is a good option for the investors for the following reasons:

• Reliable and trustworthy: The Principal Mutual Fund being a popular name in the mutual fund sector in India makes for a reliable investment option.
• Low-risk investment: Ideal for investors having a low-risk appetite. If you don’t want to get exposed to potential market risks but want to get good returns it can be a smart pick.
• Regular income: This scheme will enable you to have a consistent income through monthly dividend payouts.
• High level of liquidity: It comes with a very short investment tenure of 91 days. Hence, it is ideal to get high income within a quick span.
• Optimum returns: The scheme targets to generate a high level of returns for the investors at a very low associated risk.

If you want to receive regular payment then investing in this scheme will be a gainful deal for you. However, in case of any doubt regarding its suitability, you should consult with the fund manager before investing.

GST rate of 18% applicable for all financial services effective July 1, 2017.