2 min read.Updated: 30 Sep 2020, 01:00 PM IST Edited By Avneet Kaur
The scheme will allocate 80-85% of its corpus to the top 100 Indian large cap stocks by market cap
It will invest up to 15% in US stocks with a market cap higher than USD 50 billion
Principal Asset Management has launched a new fund offer (NFO) of Principal Large Cap Fund, an open-ended equity scheme predominantly investing in large cap stocks. The NFO is open for subscription and will close on October 12. The scheme 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 USD 50 billion. The large cap fund will aim to provide growth from Indian and US economies and depreciating currencies.
Principal Large Cap Fund will be managed by Sudhir Kedia. Foreign investment will be managed by Anirvan Sarkar. The fund will be benchmarked against the composite index of Nifty 100 Total Return Index (NIFTY100 TRI).
“Principal Large Cap Fund is the first large cap fund in India that will enable investors to widen their investment horizon and tap into the investment opportunities provided by Large Cap Indian and US companies, especially those who are expected to emerge stronger from the changing economic landscape and have a higher growth and comparatively lower risk quotient. A globally diversified portfolio will help investors to take advantage of market cycles in two different economies and partake in the returns of the companies in the US, while also trying to mitigate the country risk," says Bharat Ravuri, Managing Director, Principal Asset Management.
“Large cap funds have comparatively delivered better returns with lesser volatility over the long term. Our research indicates that a composite Index of 15% of the S&P 500 (INR) Index and 85% of the NIFTY100 Index outperforms the Indian indexes in multiple trailing periods and has lower volatility. The allocation to US large Cap companies would comprise up to 15 stocks around 4 to 6 sectors and include stable and high growth businesses with a global brand franchise,’’ says Rajat Jain, Chief Investment Officer, Principal Asset Management.
The Principal Large Cap Fund offers two unique facilities like – 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.
An investor can invest a minimum of ₹5,000. Principal Large Cap Fund offers growth and dividend option.