The Principal Low Duration Fund - Direct Plan - Growth option is an open-ended low duration debt scheme offered by Principal Mutual Fund, the asset manager of which is Principal Asset Management Pvt. Ltd. The fund house caters to more than 4 lakh customers through its 102 investor centres and more than 20,000 empanelled distributors across the country.
The scheme invests in debt securities in a way that the portfolio’s Macaulay Duration ranges between 6 months and 1 year. The direct plan of the Principal Low Duration Fund gives investors an opportunity to invest directly with the fund house without the involvement of any intermediary and hence, has a lower expense ratio when compared to the regular plan. The growth option on the other hand, offers capital gains to the investor on completion of the scheme duration.
Investment Objective
To produce capital gains for the investor over a short term by making investments in money market and debt securities.
Key Features of the Scheme
The Principal Low Duration Fund is ideal for investors who prefer investing in low risk debt and money market securities. The following features are exhibited by the scheme:
|
Type of Fund |
An open-ended debt scheme |
|
Plans Available |
Regular Plan and Direct Plan |
|
Options under each Plan |
The dividend option has payout, sweep, and reinvestment facility |
|
Risk |
Moderately Low |
|
Systematic Investment Plan |
Available |
|
Systematic Transfer Plan |
Available |
|
Systematic Withdrawal Plan |
Available |
Investment Amount for Principal Low Duration Fund
|
Minimum Application Amount |
Rs.5,000 and any amount thereafter |
|
Minimum Additional Investment |
Rs.1,000 and any amount thereafter |
|
Minimum Installment for Systematic Investment Plan (SIP) |
Rs.2,000 for a minimum of 6 instalments |
|
Minimum Installment for Systematic Transfer Plan (STP) |
Rs.1,000 for a minimum of 6 instalments |
|
Minimum Amount for Systematic Withdrawal Plan (SWP) |
Rs.500 each for a minimum of 6 instalments |
|
Entry Load |
Not Applicable |
|
Exit Load |
Nil |
Asset Allocation for Principal Low Duration Fund
|
Types of Securities |
Percentage of Net Assets |
Risk Profile |
|
Money market and debt securities (including CBLO and cash) |
Up to 100% |
Low to Medium |
NAV Disclosure and Benchmark for Principal Low Duration Fund
The Net Asset Value (NAV) of the Principal Low Duration Fund is derived by dividing the scheme’s 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 outstanding units under the scheme on the date of valuation.
The NAV will be computed and disclosed on every business day. The NAV will be sent for publication to 2 newspapers with nationwide circulation on every business day. The fund house will display the computed NAV on its website (www.principalindia.com) by 9:00 p.m. on the NAV declaration day. The same will be displayed by the website of the Association of Mutual Funds in India (AMFI) at www.amfiindia.com.
Benchmark - CRISIL Low Duration Debt Index
Fund Manager of the Principal Low Duration Fund
Mr. Pankaj Jain
The Principal Low Duration Fund is managed by Mr. Pankaj Jain since January 2012. Mr. Jain has more than 16 years of experience in the fixed income markets. Prior to joining Principal Mutual Fund, he had worked with Taurus Mutual Fund, Edelweiss Mutual Fund, and Edelweiss Capital. The other schemes managed by him include Principal Ultra Short Term Fund, Principal Equity Savings Fund, and Principal Cash Management Fund.
Why you should invest in the Principal Low Duration Fund - Direct Plan - Growth Option
If you are looking at investing your capital for a short term and still achieve capital appreciation, the Principal Low Duration Fund should be your ideal choice. The direct plan lets you enjoy a lower expense ratio as it does not involve any intermediary. Another reason why you should invest in this scheme is because it offers additional benefits such as SIP, STP, SWP, switching option, etc.
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