The Principal Dynamic Bond Fund - Growth Option is ideal for investors who seek to generate income in the long run through investments in debt and money market instruments with varying risks. The fund invests its assets in a diverse portfolio of debt instruments and debt-related securities of quasi-government, government, and corporate issuers. However, this scheme might also invest in securitised debts in order to meet its liquidity requirements.
Offering a choice between a Regular Plan and a Direct Plan, this mutual fund offers 2 investment options to unitholders under both the plans - the Growth Option and the Dividend Option. The Dividend Option can be further sub-categorised into Dividend Payout, Dividend Reinvestment, and Dividend Sweep.
Investment Objective of Principal Dynamic Bond Fund - Growth Option
The primary objective of this scheme is to generate regular income along with preservation and growth of the capital by investing in debt instruments and related securities.
Key Features of Principal Dynamic Bond Fund - Growth Option
Check out some of the significant features of the Principal Dynamic Bond Fund - Growth Option as indicated in the table given below:
|
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 - Growth Option
The table mentioned below shows the charges that are usually levied once an investor opts for this scheme:
|
Minimum application amount |
Rs.5,000 and subsequently any amount under each option or plan |
|
Minimum additional investment |
Rs.1,000 and subsequently any amount under each option or plan |
|
Minimum installment for Systematic Investment Plan (SIP) |
Rs.2,000 for a minimum of 6 installments |
|
Minimum installment for Systematic Transfer Plan (STP) |
Rs.1,000 for a minimum of 6 installments |
|
Minimum installment for Regular Withdrawal Plan (RWP) |
Rs.500 for a minimum of 6 installments |
|
Entry Load |
Not applicable |
|
Exit Load |
|
Asset Allocation for Principal Dynamic Bond Fund - Growth Option
|
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 |
It should be noted that the scheme might invest a maximum of 35% of its net assets in derivatives. The maximum investment in overseas financial debt instruments, in addition to units of overseas mutual funds, should be up to 25% of the net assets of the investment plan. Furthermore, the fund may deploy up to 50% of its net assets in stock lending.
NAV Disclosure and Benchmark for Principal Dynamic Bond Fund - Growth Option
NAV - The asset management company (AMC) shall calculate the net asset value (NAV) of the units of the scheme for all working days since it is used to determine the prices for redemption, purchase, or switch-out of units. The AMC will display the NAVs on its official website at www.principalindia.com along with the Association of Mutual Funds in India (AMFI) website at www.amfiindia.com by 9.00 p.m. of each business day.
The AMC should update the unaudited financial results of the fund on its website within 1 month starting from the end of each half-year, i.e. 31 March and 30 September. This should be displayed in a user-friendly and downloadable format. The AMC shall also publish an advertising for the same on a national English daily newspaper along with a newspaper published in the regional language of the area where the head office of the mutual fund is located. The scheme shall update its portfolio along with the ISIN on its website on the last day of the month or half-year. The portfolio should also be updated 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 - Growth Option is CRISIL Composite Bond Fund Index.
Principal Dynamic Bond Fund - Growth Option Fund Manager
The fund manager for Principal Dynamic Bond Fund - Growth Option is Ms. Bekxy Kuriakose who has been handling the scheme since January 2013. Ms. Kuriakose uses her extensive knowledge of the market and years of experience gathered from a prolonged career to offer investors the right solutions in order to meet their investment goals while keeping in mind their unique risk-taking capacities.
Why You Should Invest in Principal Dynamic Bond Fund - Growth Option
- This scheme offers high returns in the long term while offering a moderate risk factor.
- Investors can opt for the SIP, STP, and RWP facilities according to their convenience.
- This fund does not charge any exit load on investors who are planning to redeem or switch-out their units after the completion of 1 year starting from the date of allotment of units.
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GST rate of 18% applicable for all financial services effective July 1, 2017.
