Principal Mutual Fund managed by the Principal PNB Asset Management Company is known for the comprehensive and innovative solutions that it provides to the retail and institutional investors. With 102 investor centers and more than 20,000 empanelled distributors spread across the nation, this fund house serves more than 4 lakh investors. The main intent of the company is to provide long-term financial solutions and high returns to the investors for helping them build wealth over a very long period of time.
Principal Dividend Yield Fund - Half Yearly Dividend Sweep is an open-ended equity scheme which chiefly makes investments in the stocks of high-dividend yielding companies. Under this scheme, customers can either go for the Direct plan or can subscribe to the Regular plan as per their convenience. Both of these plans carry 2 investment options - Growth and Dividend from which the unitholders can choose anyone based on their investment objective. Under the Half Yearly Dividend plan, the fund offers Payout, Reinvestment, and Sweep facilities. By choosing the sweep option, the investors get the freedom to invest their dividend payout in some other scheme of the same fund.
Investment Objective of Principal Dividend Yield Fund
The main intention of the Principal Dividend Yield Fund is to produce dividend as well as a long-term capital appreciation for the unitholders by making investments in a well-designed portfolio of equity and equity-linked instruments of companies which have the potential of yielding high dividends.
Key Features of Principal Dividend Yield Fund
Being loaded with a number of features this scheme is considered to be one of the best investment options by the investors. The major attributes of this fund are as follows:
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Type of fund |
It is an open-ended equity scheme which chiefly makes investments in dividend yielding stocks of companies |
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Plans available |
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Options under each plan |
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Risk |
Moderately high |
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Systematic Investment Plan |
Available |
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Systematic Transfer Plan |
Available |
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Regular Withdrawal Plan |
Available |
Investment Amount for Principal Dividend Yield Fund
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Minimum application amount |
New investor - Rs.5,000 Existing investor - Rs.1,000 |
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Minimum additional investment |
Any amount |
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Minimum installment for Systematic Investment Plan (SIP) |
Rs.500 for a minimum of 12 installments |
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Minimum installment for Systematic Transfer Plan (STP) |
Rs.1,000 for a minimum of 6 installments |
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Minimum installment for Regular Withdrawal Plan (RWP) |
Rs.500 for a minimum of 6 installments |
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Entry Load |
Not applicable |
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Exit Load |
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Asset Allocation for Principal Dividend Yield Fund
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Instruments |
Allocations (Percentage of total assets) |
Risk Profile |
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Equity and equity-related instruments of companies with a high dividend yield |
65% to 100% |
High |
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Debt and money market instruments which include cash, units of debt, and liquid mutual fund schemes |
0% to 35% |
Low to medium |
NAV - The redemption or switch-out of units under this investment plan is based on the Net Asset Value (NAV) of the units for the particular working day and this is why the company has to compute the NAV on an everyday basis. After its computation, the NAV is sent for publication in 2 daily newspapers with nationwide circulation. Along with that as mandated by SEBI, the NAV will also be updated on the official website of the asset management company at www.principalindia.com along with the official website of Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9:00 p.m. by the evening of every business day.
Benchmark Index - Nifty Dividend Opportunities 50 Index is the benchmark index of the Principal Dividend Yield Fund - Half Yearly Dividend Sweep. the achievements of this fund are assessed against the performance of this index.
Principal Dividend Yield Fund - Half Yearly Dividend Sweep Fund Manager
Mr. Dhimant Shah is the fund manager of the Principal Dividend Yield Fund- Half Yearly Dividend Sweep. He has been handling the fund since December 2011. With his immense experience and expertise in this domain, he strategically guides the investors and tries to get the best returns for them from their investment.
Why Should You Invest in Principal Dividend Yield Fund - Half Yearly Dividend Sweep?
Owing to the varied benefits that this fund offers, this fund is a popular one among the investors. Here are the reasons for investing in this fund:
- Multiple options: This scheme offers multiple investment options for the investors to choose as per their requirement. You will not only have the option of choosing between direct and regular plan but also you can go for any one of the growth and dividend investment options. Moreover, customers who select the dividend option will again get 3 different options such as payout, reinvestment, and sweep option.
- Yields high amount of dividend: Since this mutual fund scheme invests its portfolio corpus in the high dividend-yielding stocks of renowned companies, it is ideal for investors who are interested in investing in equity and equity-linked instruments for deriving high returns.
- Professional guidance: The fund being looked after by a professional fund manager, there are high chances that the investors will get optimum results due to effective investment strategies implemented by the manager.
Various additional benefits: SIP, STP, and RWP facilities are some other facilities that are offered by this scheme for the convenience of the customers. These additional benefits make this scheme a highly preferable option for the investors.
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GST rate of 18% applicable for all financial services effective July 1, 2017.
