Principal Pnb Asset Management Company is the investment manager of the Principal Mutual Fund which is a popular and revered name in the mutual fund industry in India. Since its inception this asset management company has been offering bespoke investment solutions to its institutional and retail investors. Having a reach in almost every part of India, this company currently has 4 lakh investors and 20,000 empanelled distributors spread across 102 investor centers throughout India. Its trustee committee is the Principal Trustee Company Private Limited.
The Principal Dividend Yield Fund is an open-ended equity scheme which invests in the stocks of dividend yielding companies in order to generate high returns for the investors over a long investment tenure. Investors who opt for the growth option under this scheme don’t get dividend income at frequent intervals. Instead, their money is kept invested in the stocks throughout the investment period generating capital appreciation. The growth option helps the investors build wealth and get high returns at the end of the policy period. The Direct plan of this scheme allows the unitholders to invest in the scheme directly at a low expense ratio without paying distributor cost.
Investment Objective of Principal Dividend Yield Fund
This mutual fund aims to offer long-term capital appreciation as well as consistent income to the investors through investments made in high-dividend yielding companies. It invests in the equity and equity-related securities of companies having a good dividend yielding track record for offering best returns.
Key Features of Principal Dividend Yield Fund
The key features of the Principal Dividend Yield Fund which make it a preferable option for the investors are as follows:
|
Type of fund |
It is an open-ended equity fund which invests in the equity and equity-linked instruments of companies yielding high-dividend. |
|
Plans available |
|
|
Options under each plan |
Both the plans come with the following options:
The Half Yearly Dividend Option under both the plans comes with the following sub-options:
|
|
Risk |
Moderately High |
|
Systematic Investment Plan |
Available |
|
Systematic Transfer Plan |
Available |
|
Systematic Withdrawal Plan |
Available |
Investment Amount for Principal Dividend Yield Fund
|
Minimum application amount |
Rs.5,000 and any amount thereafter |
|
Minimum additional investment |
Rs.1,000 and any amount thereafter |
|
Minimum instalment for Systematic Investment Plan (SIP) |
Minimum of Rs.500 and in multiples of Re.1 thereafter (minimum of 12 instalments) |
|
Entry Load |
Not Applicable |
|
Exit Load |
1% of the applicable NAV – If the units are redeemed within a holding period of 1 year from the allotment date, this amount will be charged as exit load. No exit load is charged if the units are redeemed after a holding period of 1 year from the date of allotment of the scheme. |
Asset Allocation for Principal Dividend Yield Fund
|
Instruments |
Allocations (Percentage of total assets) |
Risk Profile |
|
Equity and equity-related securities of high-dividend yield companies |
65% to 100% |
High |
|
Money market and debt securities which include liquid mutual fund schemes/debt mutual fund schemes and units of cash |
0% to 35% |
Low to Medium |
NAV Disclosure and Benchmark for Principal Dividend Yield Fund
NAV: NAV of this mutual fund will be calculated and updated on a regular basis as mandated by SEBI. The dividend distribution depends on the availability of surplus assets and this is why the time and frequency of dividend distribution among the unitholders will not be fixed. The trustee of the fund will take the final decision. After computation, the final NAV will be published in minimum 2 popular daily newspapers which are subscribed throughout the country. The NAV will also be updated on the official website of the company as well as on the website of the Association of Mutual Funds in India (AMFI) by 9:00 p.m. on every working day.
Liquidity: Since this scheme is an open-ended one, the investors can sell and redeem the units on any business day at the NAV prices of that day subject to the applied loads. After the official submission and acceptance of the redemption request, the company pays the amount to the investors within 10 business days.
Benchmark Index: The Nifty Dividend Opportunities 50 Index is the benchmark index for the Principal Dividend Yield Fund. The performance of this fund is assessed against the achievements of this benchmark index.
Principal Dividend Yield Fund Fund Manager
The Principal Dividend Yield Fund is managed by Mr. Dhimant Shah who has more than 26 years of experience in the stock market. He has been efficiently managing the fund all throughout. Among the other funds of the company which are managed by him are Principal Focused Multicap Fund, the Principal Emerging Bluechip Fund, and the Principal Dividend Yield Fund.
Why Should You Invest in the Principal Dividend Yield Fund – Direct Plan – Growth Option?
The Principal Dividend Yield Fund – Direct Plan – Growth Option makes the best choice for investors who are willing to create wealth over a long period of investment. The vital reasons why one should invest in this scheme are as follows:
- Trustworthy and safe - Since this fund is managed by an expert fund manager who has wide experience in this domain, it is trusted by many investors to park their money for a long-term period.
- Investment options for all - This scheme comes with varied investment options. Whether you want to get regular income or want to generate wealth after a long period of time this scheme has both the options. Moreover, you can subscribe to the scheme either directly or through a distributor by availing the regular plan.
- Optimum returns - The main target of this fund is to invest in the equity and equity-related securities of companies which have a record of generating a high dividend. Hence, you have relatively higher chances of deriving optimum returns at the end of the investment tenure.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
GST rate of 18% applicable for all financial services effective July 1, 2017.
