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Risk Factors For Mutual Fund Investments
Statutory Details:
Principal Mutual Fund has been constituted as a trust with Principal Financial Group (Mauritius) Limited. Punjab National Bank and Vijaya Bank as co-settlors. The Sponsor and co-settlors have entrusted a sum of Rs. 25 lakhs to the Trustee as the initial contribution towards the corpus of the Mutual Fund. Sponsor: Principal Financial Services Inc., USA.[through its wholly owned subsidiary Principal Financial Group (Mauritius) Limited]. Trustee: Principal Trustee Company Private Limited Investment Manager: Principal Pnb Asset Management Company Private Limited.
Risk Factors:
  • Mutual Funds and Securities investments are subject to market risks and there can be no assurance and no guarantee that the objective of Principal Mutual Fund can be achieved.
  • All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market.
  • Past performance of the Sponsor/AMC/ Principal Mutual Fund/Punjab National Bank/Vijaya Bank does not indicate or guarantee the future performance of the scheme(s) of the Principal Mutual Fund.
  • Principal Index Fund, Principal Debt Savings Fund, Principal Growth Fund, Principal Balanced Fund, Principal Global Opportunities Fund, Principal Tax Savings Fund, Principal Personal Tax Saver Fund, Principal Retail Equity Savings Fund, Principal Income Fund, Principal Government Securities Fund, Principal Dividend Yield Fund, Principal Cash Management Fund, Principal Large Cap Fund, Principal Services Industries Fund, Principal Debt Opportunities Fund, Principal Pnb Fixed Maturity Plans, Principal Bank CD Fund, Principal Retail Money Manager Fund, Principal Emerging Bluechip Fund and Principal Smart Equity Fund, are only the names of the Scheme(s) and does not in any manner indicate either the quality of the schemes or its future prospects or return.
  • Investors are requested to read the Offer Document/Statement of Additional Information(SAI) / Scheme Information Document (SID) and Key Information Memorandum(KIM) of the respective schemes carefully before investing.
Investment Objectives of the schemes of Principal Mutual Fund:
  • Principal Index Fund: To invest principally in securities that comprise S&P CNX Nifty (NSE) and subject to tracking errors endeavour to attain results commensurate with the Nifty.
  • Principal Debt Savings Fund - MIP: To generate regular income through investments in fixed income securities so as to make periodical income distribution to the unitholders and also to generate long-term capital appreciation by investing a portion of the Scheme’s assets in equity and equity related instruments.
  • Principal Debt Savings Fund - Retail Plan: To generate regular income through investments in fixed income securities so as to make periodical income distribution to the Unitholders and also to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments to cater to investors seeking a slightly more aggressive exposure to equity markets.
  • Principal Growth Fund: To achieve long term capital appreciation.
  • Principal Balanced Fund: To provide long term appreciation and current income by investing in a portfolio of equity & equity related securities and fixed income securities.
  • Principal Global Opportunities Fund: The investment objective of the Scheme is to provide long term capital appreciation by predominantly investing in overseas mutual fund schemes, and a certain portion of its corpus in Money Market Securities and/or units of Money Market / Liquid Schemes of Principal Mutual Fund.
  • Principal Tax Savings Fund: To build a high quality growth oriented portfolio to provide long term capital gains to the investors. The scheme aims at providing returns through capital appreciation.
  • Principal Personal Tax Saver Fund: To provide long term growth of capital. The investment manager will aim to achieve a return on assets in excess of the performance of BSE 100 Index.
  • Principal Retail Equity Savings Fund: To provide long term capital appreciation and regular income by investing in equity and equity related instruments and also in debt and money market instruments.
  • Principal Income Fund – Long Term Plan (LTP): To generate regular income and capital appreciation/accretion through investment in debt instruments and related securities besides preservation of capital.
  • Principal Income Fund – Short Term Plan (STP): To generate regular income and capital appreciation / accretion through investment in debt instruments and related securities besides preservation of capital and to achieve stable returns over shorter -term investment horizons.
  • Principal Government Securities Fund: To generate risk free return through investment in sovereign securities and thus provide medium to long term capital gains and income distribution to its Unitholders.
  • Principal Dividend Yield Fund: To provide capital appreciation and/or dividend distribution by investing predominantly in a well diversified portfolio of companies that have a relatively high dividend yield.
  • Principal Cash Management Fund: To provide investors with as high a level of income available from short term investments as is considered consistent with preservation of capital and maintenance of liquidity by investing in a portfolio of money market and investment grade debt instrument.
  • Principal Large Cap Fund: To provide capital appreciation and/or dividend distribution by predominantly investing in companies having a large market capitalization.
  • Principal Services Industries Fund : To provide capital appreciation and income distribution to the unitholders by investing predominantly in equity/equity related securities of the companies belonging to the service industries and the balance in debt securities and money market instruments including call money.
  • Principal Debt Opportunities Fund - Conservative Plan: To generate regular income & Capital appreciation through investments in debt securities and money market instruments.
  • Principal Debt Opportunities Fund - Corporate Bond Plan : The primary objective is to generate income and capital gains through investments in a portfolio of securities issued by Private and Public Sector Companies.
  • Principal Pnb Fixed Maturity Plans: To build an income oriented portfolio and generate returns through investment in Debt / Money market Instruments and Government Securities.
  • Principal Bank CD Fund: The objective is to generate returns by primarily investing in Bank CDs. Bank CDs provide liquidity and a relatively lower credit risk.
  • Principal Retail Money Manager Fund : To generate steady return by investing in debt and money market securities.
  • Principal Emerging Bluechip Fund : The primary objective of the Scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of mid cap & small cap companies.
  • Principal Smart Equity Fund : The primary objective of the Scheme is to seek to generate long term capital appreciation with relatively lower volatility through systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. The Scheme will decide on allocation of funds into equity assets based on equity market Price Earning Ratio (PE Ratio) levels. When the markets become expensive in terms of 'Price to Earnings' Ratio; the Scheme will reduce its allocation to equities and move assets into debt and/or money market instruments and vice versa.
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