Principal Dividend Yield Fund(HDP)

Principal Dividend Yield Fund(HDP)
Dividend Yearly
0.47  (As on 17-06-2019)
Category
Equity - Others
52-week NAV high
54.76  (As on 03-06-2019)
52-week NAV low
48.03  (As on 22-08-2019)
Expense
2.6%  (As on 30-09-2019)

Performance

1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
Fund Returns -0.87 9.84 -1.27 3.75 2.06 12.61 11.72 7.67 -
Scheme Details
Fund Type
Open Ended
Investment Plan
Dividend
Bonus
0
Launch Date
Oct 15, 2004
Last Dividend
0.47
Minimum Investment
5000

Principal Mutual Funds is a popular fund house under the umbrella of Principal Pnb Asset Management Company. This mutual fund company is known for offering a wide range of customised investment solutions for institutional and retail investors. With more than 4 lakh investors, 102 investor centres, and 20,000 empanelled distributors across India, at present this company is one of the most trusted fund houses in India. The Principal Dividend Yield Fund is one of the 8 open-ended equity schemes rolled out by this company. It offers payout, reinvestment, and sweep facility under its half yearly dividend investment option.

Investors who opt for the ‘Dividend Payout’ facility will be able to get regular payouts of the dividends in their bank accounts. Contrarily, investors who don’t want to redeem their dividends can choose between the ‘Dividend Reinvestment’ and ‘Dividend Sweep’ options to reinvest their dividend either in the same scheme or in any other open-ended scheme of the same fund. The half yearly dividend payout facility of this fund works best for investors who want to get regular earnings through their mutual fund investments.

Investment Objective of Principal Dividend Yield Fund – Half Yearly Dividend Payout

The main target of this scheme is to generate income for the unitholders consistently while also offering capital appreciation over a long period of time by primarily investing in a well-managed portfolio comprising stocks of companies with a track record of yielding high dividend. To achieve its investment objective, this company predominantly invests in the equity and equity-related instruments of such companies along with investing some parts of its corpus in debt and money market securities.

Key Features of Principal Dividend Yield Fund

There are a number of unique features which makes the Principal Dividend Yield Fund a popular pick for the investors. The key features of this scheme are enlisted here:

Type of fund

An open-ended equity fund investing in the equity and its related instruments of high-dividend yield companies

Plans available

  1. Regular Plan
  2. Direct Plan

Options under each plan

Both the plans under this scheme have the following investment options:

  1. Half Yearly Dividend Option
  2. Growth Option

The Half Yearly Dividend Option under both the plans again have the following sub-options:

  1. Payout
  2. Reinvestment
  3. Sweep

Risk

Moderately High

Systematic Investment Plan

Available

Systematic Transfer Plan

Available

Systematic Withdrawal Plan

Available

Investment Amount for Principal Dividend Yield Fund – Half Yearly Dividend Payout

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 of this scheme are redeemed within 1 year from the date of allotment, the unitholders will be charged this amount.

Asset Allocation for Principal Dividend Yield Fund – Half Yearly Dividend Payout

Instruments

Allocations (Percentage of total assets)

Risk Profile

Equity and – equity-linked instruments of High Dividend Yield companies

65% to 100%

High

Money market and debt instruments including liquid mutual fund schemes/debt mutual fund schemes and cash units

0% to 35%

Low to Medium

NAV Disclosure and Benchmark for Principal Dividend Yield Fund

NAV: The NAV of the Principal Dividend Yield Fund will be computed on a regular basis. However, the time and frequency of distribution of the dividends are not fixed as it entirely depends on the availability of surplus. After computation of the NAV, it will be published in minimum popular daily newspapers circulated nationwide. It will also be updated on the website of the company as well as the official AMFI website by evening at 9:00 pm. on every business day.

Liquidity: Since it is an open-ended scheme, the units can be sold and redeemed by the unitholders on any business day at the existing NAV prices of that day subject to the applicable loads. Following the SEBI guidelines, the fund dispatches the dividend redemptions within 10 days of accepting the redemption request. The redemptions can be received through cheque or other electronic modes.

Benchmark Index: The benchmark index for this fund is the Nifty Dividend Opportunities 50 Index. The performance of the Principal Dividend Yield Fund is benchmarked against the profits and gains of the Nifty Dividend Opportunities 50 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 is the manager of this fund for more than five and a half years. Other than this fund, he also manages several other funds of this company which are the Principal Emerging Bluechip Fund, the Principal Focused Multicap Fund, and the Principal Dividend Yield Fund.

Why should you invest in the Principal Dividend Yield Fund – Half Yearly Dividend Payout?

The Principal Dividend Yield Fund – Half Yearly Dividend Payout makes a great option for the investors who are willing to get regular payments in their account. Some of the vital reasons why you should consider investing in this scheme are as follows:

Well-managed fund: This fund is efficiently managed by an experienced fund manager having years of experience in this domain. He will implement safe strategies to invest your money in a way to generate optimum dividends with less risk.

Flexibility to choose: While the dividend payout facility under this scheme will help you to generate income on a regular basis, you will also get the option of reinvesting or sweeping your dividend to some other fund if you want.

High dividend yielding scheme: Since this fund has a good track record of high dividend yield you can vouch on its dividend yielding ability and invest your money. Investors have relatively higher chances of deriving dividends from this scheme.

Less Investment, high profit: While investing in this fund you do not need to save a large amount of money as you can invest as per your ability and requirement. Under this scheme, you can start investing in a SIP at a minimum instalment amount of Rs.500.

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