Principal Mutual Fund has launched Principal Large Cap Fund, an open-ended equity scheme predominantly investing in large cap stocks.
The NFO opens for subscription from September 28, 2020 to October 12, 2020. The fund will allocate 80-85% of its corpus to the top 100 Indian large cap stocks by market cap and actively invest up to 15% in US stocks with a market cap higher than $ 50 billion. The large cap fund will aim to provide growth from Indian and US economies and depreciating currencies.
The fund will be benchmarked against the composite index of Nifty 100 Total Return Index (NIFTY100 TRI). The Principal Large Cap Fund aims to achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity-related securities of Large Cap companies including derivatives, with emphasis on risk management to reduce portfolio volatility. The fund will draw from Principal’s proprietary global research expertise and experience and its robust investment framework for the selection of US stocks.
The Principal Large Cap Fund offers two facilities - SMART & My Gain. SMART aims to protect investors against a sharp fall in markets as it invests in a staggered manner to mitigate risks from timing the market. My Gain facility allows investors to set a target rate of return and automatically shifts the appreciated amount to any Principal fund of their choice, when the target rate is achieved.
