The Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan is well-suited for investors who are looking to generate income over a long investment horizon by investing in debt and money market instruments with varying risks. This mutual fund invests its assets in a diverse portfolio of debt instruments and debt-related securities of quasi-government and government organisations as well as corporate issuers. However, it should be noted that this scheme can also invest in securitised debts to meet its liquidity needs.
This fund allows investors to choose between 2 investment plans - the Regular Plan and the Direct Plan. The investment options available under both the plans are the Growth Option and the Dividend Option. Under this scheme, the Dividend Option can be further sub-categorised into Dividend Reinvestment, Dividend Sweep, and Dividend Payout.
Investment Objective of Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
The main objective of this investment plan is to generate regular income while allowing the capital to grow in the long run through investments in debt instruments and debt-related securities.
Key Features of Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
See the table mentioned below to learn about some of the key features of Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan:
|
Type of fund |
An open-ended dynamic debt scheme that invests across tenures |
|
Plans available |
|
|
Options under each plan |
Please note that investors can invest in the Dividend Option on a quarterly or yearly basis. |
|
Risk |
Moderate |
|
Systematic Investment Plan |
Available |
|
Systematic Transfer Plan |
Available |
|
Regular Withdrawal Plan |
Available |
Investment Amount for Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
When you decide to invest in this scheme, you must be aware of the various investment amounts that are levied that the unitholders have to pay. See the table mentioned below to learn about these charges:
|
Minimum application amount |
Rs.5,000 and any amount under each plan or option thereafter |
|
Minimum additional investment |
Rs.1,000 and subsequently any amount under each plan or option |
|
Minimum installment for Systematic Investment Plan (SIP) |
Rs.2,000 for at least 6 installments |
|
Minimum installment for Systematic Transfer Plan (STP) |
Rs.1,000 for at least 6 installments |
|
Minimum installment for Regular Withdrawal Plan (RWP) |
Rs.500 for at least 6 installments |
|
Entry Load |
Not applicable |
|
Exit Load |
|
Asset Allocation for Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
|
Instruments |
Allocations (Percentage of total assets) |
Risk Profile |
|
Debt securities |
Up to 100% |
Low to medium |
|
Money market instruments |
Up to 100% |
Low |
|
Securitised debt |
Up to 50% |
Low to medium |
Please note that this mutual fund can choose to invest up to 35% of its net assets in derivatives. The maximum investment in overseas financial debt instruments, which includes units of overseas mutual funds, can be 25% of the net assets of the investment plan. Furthermore, the scheme might deploy a maximum of 50% of its net assets in stock lending.
NAV Disclosure and Benchmark for Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
NAV - The purchase, redemption, and switch-outs under this scheme as based on the net asset value (NAV) of the units for each business day. Therefore, the asset management company (AMC) should calculate the NAV of the units of this fund scheme for all working days. The AMC shall display the NAVs on its official website at www.principalindia.com along with the website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9.00 p.m. of each working day.
The AMC must also display the unaudited financial results of the scheme in a user-friendly and downloadable format on its website before the completion of 1 month starting from the end of every half-year, i.e. 31 March and 30 September. The AMC should also advertise the same in an English daily newspaper with nationwide circulation along with a newspaper published in the regional language of the area where the head office of the AMC is situated. The company shall update the scheme portfolio along with the ISIN on its website on the last day of the month or half-year. The portfolio should also be displayed on the AMFI website in a downloadable, user-friendly format within 10 days starting from the end of each month or half-year.
Benchmark Index - The benchmark followed by Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan is Crisil Composite Bond Fund Index.
Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan Fund Manager
The fund manager of Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan is Ms. Bekxy Kuriakose. Ms. Kuriakose has been providing her expert counsel to unitholders under this scheme since January 2013. She has been using her years of experience along with her extensive knowledge of the market to help investors choose the right investment strategies according to their specific investment goals and unique risk-taking capacities.
Why You Should Invest in Principal Dynamic Bond Fund - Quarterly Dividend Sweep - Direct Plan
- By investing in this scheme, unitholders can earn high returns in the long term.
- This option allows investors to sweep the dividend amount on a quarterly basis.
- This mutual fund carries a moderate risk factor.
- This scheme offers SIP, STP, and RWP facilities for the convenience of the investors.
- Investors are not charged any exit loan under this fund if they redeem or switch-out their units after the completion of 1 year starting from the date of allotment.
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