Principal Small Cap Fund – NFO Dates, Scheme Features, Asset Allocation

Principal Small Cap Fund

Principal Mutual Fund is launching a new fund with the name Principal Small Cap Fund during NFO (New Fund Offer).  This fund aims at investing in equity and equity related instruments of small cap companies. The NFO opens on 22nd April 2019 and closes on 6th May 2019. During the offer, the units of this mutual fund will be issued at a price of Rs 10 per unit.

Principal Mutual Fund is a part of the Principal Financial Group which is sponsored by US-based firm named Principal Financial Services Inc. Incorporated in the year 1994, the fund house has more than 5 lakh customers and 20,000 empanelled distributors across the country. As on 31st March 2019, the total Asset Under Management (AUM) of the fund house stands at Rs. 7090.70 crores.

Principal Small Cap Fund – NFO Details
Type of Offer NFO (New Fund Offer)
Fund House Principal Mutual Fund
Name of the Fund Principal Small Cap Fund
Type of Scheme Open-Ended
Category of Scheme Equity – Small Cap
NFO Starts 22nd April 2019
NFO Ends 6th May 2019
NFO Unit Price Rs 10 per unit
Minimum Investment Rs 5,000 (Lump-Sum), Rs 5,000 (SIP)
Plans Regular, Direct
Options Growth, Dividend
Entry Load Not Applicable
Exit Load 1% if redeemed within a year; otherwise Nil
Investment Manager Principal Asset Management Private Limited
Fund Manager Mr P.V.K. Mohan and Mr Siddarth Mohta
Principal Small Cap Fund – Features of the Scheme

There are following notable features of this new coming fund:-

  1. It is an open-ended equity fund which will invest in equity and equity related instruments of small cap companies.
  2. It aims at generating long term capital growth.
  3. As a benchmark, it will follow the Nifty Smal Cap 100 Index.
  4. The scheme requires an amount of Rs 5,000 and Rs 500 as a minimum application amount for lump-sum and SIP investments respectively.
  5. The offers both regular and direct plans with growth and dividend options.
Principal Small Cap Fund – Asset Allocation Pattern

There following asset allocation patterns proposed by the fund:-

  1. The fund proposes to invest a minimum of 65% to a maximum of 100% of the total asset in equity and equity related instruments of small cap companies. It has a high risk associated.
  2. In equity and equity related instruments of companies other than small-cap companies, it will invest a minimum of 0% to a maximum of 35% of the total asset where high risk is associated.
  3. In the debt and money market instruments including units of debt & liquid schemes, a minimum of 0% to a maximum of 35% of the total asset will be invested. A low to medium risk is associated with it.
Principal Small Cap Fund – Who can invest in this fund?

The following persons are eligible to apply for NFO of Principal Mutual Fund:-

  1. Resident adult individuals of India.
  2. Minors through their parents or guardians.
  3. Companies/body corporate/Public Sector Undertakings.
  4. Religious and charitable trusts (registered).
  5. Partnership firms/Limited Liability Partnerships.
  6. Karta of Hindu Undivided Families.
  7. Banks, including co-operative banks, Regional Rural Banks and financial institutions.
  8. Non-Resident Indian and Person of Indian Origin (Subject to RBI approval).
  9. Please go through the bellow attached SID for more categories.
Principal Small Cap Fund – Important Documents

Please click here to read the SID (Scheme Information Document) of Principal Mutual Fund NFO.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.

Follow us on Facebook, LinkedIn, and Twitter to get the latest posts.

Tags: #NFO #Mutual Fund #Principal NFO #New Fund Offer #Principal Mutual Fund #Principal Small Cap Fund

Leave a Reply

Your e-mail address will not be published. Required fields are marked *