The Principal Low Duration Fund - Dividend Sweep - Monthly is an open-ended debt scheme offered by the Principal Mutual Fund. Managed by the Principal Asset Management Pvt. Ltd., the Principal Mutual Fund is a trusted name in the Indian mutual fund industry. This renowned fund house has been catering a wide array of investment solutions to the customers for years. The Principal Financial Group, a global investment management firm with over 130 years of experience is the parent group of this firm. With 4 lakh trusted investors and around 20,000 empanelled distributors spread across 102 investor centers, the Principal Mutual Fund is a reliable investment source.
The Principal Low Duration Fund - Monthly is among the popular funds of the company with a huge number of subscribers. Since the fund offers both dividend and growth option to the investors, they can opt for any plan based on their investment capacity and objective. Under the Dividend option, the scheme offers 3 facilities, namely daily dividend, dividend sweep, and dividend reinvestment. The Dividend Sweep – Monthly option facilitates the unitholders to reinvest the dividend in any other open-ended scheme of the same fund on a monthly basis at the pertinent NAV.
Investment Objective of Principal Low Duration Fund
The main investment objective of the Principal Low Duration Fund is to derive capital growth over a short period of time as well as consistent income through investments made in debt instruments and money market securities over a short-term investment tenure.
Key Features of Principal Low Duration Fund
The Principal Low Duration Fund is packed with a number of features which are beneficial to the investors. The key features of this fund are listed out below:
|Type of fund||It is an open-ended low duration debt scheme that invests in debt and money market instruments with a Macaulay duration that is between 6 and 12 months.|
|Plans available||Regular Plan and Direct plan options are available|
|Options under each plan||The Regular and Direct plans offer the following options:
|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 after that|
|Minimum additional investment||Rs.1,000 and any amount after that|
|Minimum installment for Systematic Investment Plan (SIP)||A minimum of 6 installments of Rs.2,000 each|
|Minimum installment for Regular Withdrawal Plan||A minimum of 6 installments of Rs.500 each|
Asset Allocation for Principal Low Duration Fund - Daily Dividend Option
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Money market and debt instruments and units of Debt mutual fund schemes, money market and liquid instruments||Up to 100%||Low to medium|
NAV Disclosure and Benchmark for Principal Low Duration Fund
NAV Calculation: To compute the Net Asset Value or NAV of each unit of the Principal Low Duration Fund the market value of securities, accrued income, receivables and other assets are summed up and then the accrued expenses, payables, and other liabilities are subtracted from the amount. Then the resulting amount is divided by the number of the units that is pending on the date of the valuation. The calculation is rounded up to 4 decimal points to get the final amount.
NAV Disclosure: The NAV of this scheme is disclosed on every business day by 9:00 p.m. in the evening. It is updated on the website of Principal Mutual Fund as well as on the website of the Association of Mutual Funds of India (AMFI). The computed NAV is also published in two popular newspapers that are widely-circulated across the nation.
Fund liquidity: Since this fund is an open-ended one, the units can be purchased, sold, and redeemed on any working day based on the prevailing NAV prices. As per the guidelines of the Securities and Exchange Board of India (SEBI), the fund has to despatch the redemption proceeds to the unitholders within 10 business days from the day of receiving the request.
Benchmark Index: The margin of the profits and gains of this fund is benchmarked based on the performance of the CRISIL Low Duration Debt Index.
Principal Low Duration Fund Manager
The Principal Low Duration Fund has been efficiently managed by Mr. Pankaj Jain since 2012. He is also the Senior Fund Manager - Fixed Income at Principal Mutual Fund. With more than 16 years of expertise in the field of fixed income markets management, he knows the best techniques and strategies to generate optimum returns for the investors while also managing the associated risks. Other than Principal Mutual Fund, he had also worked with leading asset management firms like Edelweiss Mutual Fund and Taurus Mutual Fund.
Benefits of Investing in Principal Low Duration Fund - Dividend Sweep - Monthly
There are plenty of advantages of investing in the Principal Low Duration Fund - Dividend Sweep - Monthly. Here are the benefits that you can enjoy through investing in this scheme:
- Well-established company with a good reputation in the mutual fund industry
- Managed by a professional fund manager with years of experience in this domain
- Comes with a variety of investment options as per the convenience of the investors
- This scheme allows you to transfer the dividend to any other desired scheme every month
- You can avail the online subscription facility without taking hassles of personal visits
- SIP investments can be started from an amount as low as Rs.500
The Principal Low Duration Fund - Dividend Sweep - Monthly is a great investment option for people who, instead of redeeming their earnings, want to reinvest it in any other potential scheme of the same fund for enjoying good returns in near future. However, before making an investment in this scheme go through the scheme-related documents well and then make an informed decision.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
GST rate of 18% applicable for all financial services effective July 1, 2017.