The Principal Low Duration Fund - Direct Plan - Daily Dividend Option is an open-ended low duration debt scheme offered by the Principal Mutual Fund. This popular fund house, managed by the Principal Asset Management Pvt. Ltd., has approximately 130 years of experience in the asset management sector. It caters to more than 4 lakh customers with the help of around 20,000 empanelled distributors through its 102 investor centers located in several parts of the country. The scheme invests in a portfolio of debt and money market securities in such a way that the portfolio’s Macaulay Duration remains between 6 months and 1 year.
This mutual fund scheme is suitable for investors who want to have a consistent income along with short-term capital growth. While investing in the direct plan of this scheme the investors don’t need to involve any intermediary and this is why the expense ratio of this plan is lower compared to that of the regular plan. The daily dividend option of this scheme, on the other hand, allows the investors to reinvest the declared dividend in the scheme at applicable NAV prices on each business day.
Investment Objective of Principal Low Duration Fund
The prime motto of this mutual fund scheme is to produce regular income for the investors while also offering short-term capital appreciation by investing in a well-designed portfolio consisting of debt and money market securities.
Key Features of Principal Low Duration Fund
There are multiple features that make the Principal Low Duration Fund one of the best investment options for the investors. The key features of this scheme are as follows:
|Type of fund||It is a low duration open-ended debt scheme which invests in debt and money market securities in a way that the Macaulay duration of the portfolio ranges between 6 months and 12 months|
|Options under each plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Regular Withdrawal Plan||Available|
Investment Amount for Principal Low Duration Fund
|Minimum application amount||Rs.5,000 and any amount thereafter under each option or plan|
|Minimum additional investment||Rs.1,000 and any amount thereafter under each option or plan|
|Minimum installment for Systematic Investment Plan (SIP)||Rs.2,000 for a minimum of 6 installments|
|Minimum installment for Regular Withdrawal Plan (RWP)||Rs.500 for a minimum of 6 installments|
|Minimum installment for Systematic Transfer Plan (STP)||Rs.1,000 for a minimum of 6 installments|
|Entry Load||Not applicable|
Asset Allocation for Principal Low Duration Fund
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Debt and money market instruments including cash and CBLO||Up to 100%||Low to medium|
NAV Disclosure and Benchmark for Principal Low Duration Fund
NAV - The fund house computes the Net Asset Value (NAV) of the Principal Low Duration Fund on every business day by dividing its net assets (market or fair value of the scheme’s investments + accrued income + receivables + other assets - accrued expenses - payables - other liabilities) by the number of the scheme’s units remaining on the valuation day. The final NAV is updated on the company’s website at www.principalindia.com and the official website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com by 9.00 p.m. of every business day. It is also sent for publication to at least two daily newspapers having nationwide subscription.
Liquidity - Being an open-ended mutual fund scheme, this scheme offers high liquidity to the investors. This means the units of the fund can be purchased, sold or redeemed on all the working days of the week. Typically, the scheme dispatches the proceeds for the redemption of units within 10 working days starting from the date of receiving the withdrawal request.
Benchmark Index - The benchmark index of the Principal Low Duration Fund is CRISIL Low Duration Debt Index. On the basis of the performance of this index, the profits and gains of the concerned scheme are assessed.
Principal Low Duration Fund - Fund Manager
Mr. Pankaj Jain is the fund manager for the Principal Low Duration Fund. He has been looking after the scheme since January 2012 and his tenure is 6 Years and 8 months. He has a rich experience of more than 16 years in fixed income markets. Under the expert guidance of Mr. Jain, the investors get the opportunity of investing in the most suitable scheme based on their investment goals and risk appetite. He also manages other schemes of the company namely the Principal Ultra Short Term Fund, Principal Equity Savings Fund, and Principal Cash Management Fund.
Why You Should Invest in Principal Low Duration Fund-Direct Plan - Daily Dividend Option?
The Principal Low Duration Fund comes with lots of benefits which make it a good option to invest in for a short period of time. Some of the reasons why you should consider investing in it are as follows:
- There are relatively higher chances of getting good returns with a moderately low associated risk.
- The scheme is ideal for you if you desire to generate capital growth over a short-term investment horizon while also earning regularly.
- It comes with multiple plans such as STP, RWP, and SIP facilities to cater to your unique investment requirements.
- By opting for this scheme you can save on the distributor cost which you would otherwise have to pay for under a regular plan.
- While subscribing to this scheme, no exit load will be charged by the fund house.
The Principal Low Duration Fund - Direct Plan - Daily Dividend Option can be the best pick for any investor who is willing to have a regular flow of money on a daily basis while also building some wealth by the end of the investment period. Discuss with the fund manager before taking the final call.
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