Principal Personal Tax saver Fund

Key Features of Principal Personal Tax Saver Fund

Some of the key features of Principal Personal Tax Saver Fund have been listed below :

Investment Amount for Principal Personal Tax Saver Fund

Asset Allocation for Principal Personal Tax Saver Fund

Who can invest in Principal Personal Tax Saver Fund

The following are some of the entities that are eligible to apply for purchasing units of this scheme:

• Resident Indians who are:

1. Individual adults who are the sole holders.
2. Adults individuals who are investing on a survivor basis or on a joint basis that does not exceed three members.
3. Partnership Firms.
4. Hindu Undivided Families.
5. Parents/Lawful guardians investing on behalf of minors.
6. Banks.
7. Companies, Institutions, and Public Sector Undertakings.
8. Mutual funds that have been registered with SEBI.
9. Industrial Research or Scientific Organisations.
10. Religious and Charitable Trusts, Private Trusts that come under the provisions of Section 11(5) of the Income Tax Act 1961 that is read along with Rule 17(C) of Income Tax Rules 1962 registered under the Indian Trusts Act.
11. Air Force/Army/Navy and other paramilitary bodies and units created by similar institutions.

• Financial Organisations based overseas that have come with an agreement to invest in India with a mutual fund that has been registered with the SEBI. This arrangement should also be approved by the central government.
• Multilateral Funding Agencies provided they have the approval from the Reserve Bank of India.
• Foreign Institutional Investors, Non-Resident Indians, and people of Indian origin that are staying abroad (Residents of the US and Canada have some restrictions).

NAV Disclosure and Benchmark for Principal Personal Tax Saver Fund

The NAV of the scheme is determined by dividing the net assets by the number of outstanding units on the date of valuation. The NAV is usually calculated up to two decimal points and is generally declared on every business day by 9:00 p.m. The computation of the net assets is done by adhering to the regulations issued by SEBI or the Government in order to regulate the activity of Mutual Funds.

The Benchmark Index of this scheme is S&P BSE 100 Index.

Principal Personal Tax Saver Fund Manager

P.V.K. Mohan is the fund manager of this scheme and has been the manager of this fund since July 2017.

Investment Restrictions of Principal Personal Tax Saver Fund

Some of the investment restrictions of this scheme have been listed below:

1. The scheme may invest in any other mutual fund or a different scheme from the same asset management company without charging any additional fees provided any such investment does not exceed 5% of the net asset value of the fund.
2. There is a chance that the mutual funds shall get securities transferred or purchased in the name of the mutual fund if the investments are intended for the long-term.
3. The scheme will not be making any investments in the following securities:
   1. Anything of an associate or a group company related to the sponsor.
   2. Securities issued by private placement by a group company or an associate of the sponsor.
   3. The securities of the group companies in excess of 25% of the net assets.
4. No investments will be made by the Scheme in Fund of Funds Scheme.
5. More than 10% of the NAV will not be invested in equity and equity related instruments.
6. More than 5% of the net assets will not be invested by the scheme.

Other facilities under Principal Personal Tax Saver Fund

Listed below are some of the special features of the Principal Personal Tax Saver Fund:

1. Switching option - There is an option provided for investors to switch between Direct Plan and Regular Plan and the options provided therein. This switch can be made at the NAV based prices. This switching can also be done from a select open ended scheme that is managed under the fund to a scheme that is existing during the NFO period or to a scheme that is existing on the date of the switch.
2. Systematic Investment Plan (SIP) - There is an option of Systematic Investment Plan for regular and planned investments. Unitholders under this plan can get benefits by investing certain amounts for a continuous period of time periodically. The concept that is followed here is called Rupee Cost Averaging. The fixed amount that is saved can be done either on a monthly or a quarterly basis. This is done by purchasing more units of the scheme.
3. Transactions using SMS - Transactions can be made in Principal Mutual Fund schemes by using SMS. If you wish to make use of this facility, an SMS transaction registration form and a NACH registration form has to be submitted at any Official Point of Acceptance.
4. KTRACK Facility - Other than the different modes of investment options that are available, investors will now be given an option to make transactions in the fund schemes through an electronic platform, www.karvymfs.com. The facility to make transactions is also provided through a mobile application KTRACK.

Why should you invest in Principal Personal Tax Saver Fund

Principal Personal Tax Saver Fund manages the asset of more than 4 lakh customers with over 20,000 distributors in 102 investment centres. Principal Financial Group has more than 130 years of experience in asset management and asset accumulation. The co-settlor is Punjab National bank, which is one of the largest nationalised banks in the country. This gives the company a very good branch network across the entire country, making it a trusted fund to invest on.

GST rate of 18% applicable for all financial services effective July 1, 2017.