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The Stocks mentioned above are only for the purpose of information and should not be construed as recommendation from Principal Mutual Fund. The stocks may or may not be a part of the portfolio.
Large Cap Companies: Own what you consume
02
• First Large Cap fund in India combining Indian and Foreign Large Cap companies
• 80% to 85% in Indian Equities with minimum 80% in Large Cap Companies
• Upto 15% in US Large Cap Companies
• Diversified portfolio of 50 to 60 companies
• Universe consists of US companies with a market cap higher than USD 50 Billion
Portfolio of Indian and US Blue Chip Companies
Highlights of the Fund
• Enhanced, returns 7 of the last 11 years (including CY2020) the addition of S&P500 to the portfolio has helped a composite index of (85% NIFTY 100 TRI and upto 15% S&P 500 INR)
• Lower volatility Adding the S&P 500 INR has also reduced the portfolio across investment horizons.
• Benefit from potential Rupee depreciation
Benefits of an investment in US Large Cap* Performance Accretive and Reduced Volatility
The Stocks mentioned above are only for the purpose of information and should not be construed as recommendation from Principal Mutual Fund. The stocks may or may not be a part of the portfolio. Past performance is noguarantee of future returns. The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of thescheme. * The Fund shall invest in Foreign Securities as mentioned in the SID of Principal Large Cap Fund ^ Please refer to Slide 10 -14
03
Highlights of the Fund
•
• Access to advice and research from the US based PGI Equity team
experience in enabling US Equity
• Top 100 Companies by market capitalization
• Large Companies with strong balance sheets and brands expected to benefit from the ongoing economic disruptions and the changing economic landscape
• Top 100 Companies* contribute more than 69% of sales and 77% of PAT of the NIFTY500 TRI Companies
• Top 100 companies* in India contribute more than 77% of the total market cap for listed companies
Indian Large Cap Companies
The Stocks mentioned above are only for the purpose of information and should not be construed as recommendation from Principal Mutual Fund. The stocks may or may not be a part of the portfolio. Past performance is noguarantee of future returns. The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of thescheme. * Data as on 31st July, 2020 Source: Capitalline, Company Classification as per AMFI June 2020
04
Principal Large Cap Fund (An Open-ended Equity scheme predominantly investing in Large Cap Stocks)
05
Principal Large Cap Fund: Key Characteristics
06The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of the scheme.
Emphasis on Fundamental Research and Portfolio Construction
Robust investment process with unique 6 pillar investment framework
Sector agnostic approach with bottom up stock selection
Diversified portfolio of50-60 companies
Upto 15% of the portfolio investedin US large cap companies
Growth quotient of the portfolio to be higher than the value quotient
Focus on compounding andquality businesses
Earnings Growth and Return ratios to be the preferred metrics of stock selection
Management Quality and their performance track record will be the guiding principles
Emphasis on risk management to reduce portfolio volatility
$
`
Principal Large Cap Fund: Investment Approach
07
• Focus on professionally managed and process driven businesses• Stock selection to be based on operating free cash flow generation• Preference towards compounding franchises• Prefer industries / sectors where the opportunity size is large and increasing
Quality of the Business:
• To invest in market leaders with sound balance-sheet and healthy return ratios• Business franchises with brand equity and pricing power• Value Traps to be avoided when business model has ruptured
Business Moats
• Focus on Price Value Gap• Compounding of Intrinsic Value• Seek Opportunities for potential value unlocking
Investment Returns
`
`
The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of the scheme.
Principal Large Cap Fund: Allocation to US Large Caps
08
• Global Leaders
• High and Stable Growth
• Dominant Businesses
• Globally recognized brand names
Investments in leading US companies
• Adding Performance
• Lowering Volatility
Portfolio Diversification
Universe consists of US Large Cap Companies with a minimum market cap of USD 50 Billion
The allocation to US large Cap would comprise about 15 stocks and 4 to 6 sectors and upto 15% of the total portfolio
`
Foreign Companies: The Cherry on Top
09
10
US Equity Markets and Indian Equity Markets:Adding to the Performance
-7
-2
3
8
13
18
6 Months 1 Year 3 Years 5 Years 7 years 10 Years 15 Years
Trailing Returns (in %)
Nifty 100 TRI Nifty 50 TRI S&P 500 INR
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
CY2010
CY2011
CY2012
CY2013
CY2014
CY2015
CY2016
CY2017
CY2018
CY2019
CYTD2020
Calendar year returns (in %)
Nifty 100 Nifty 50 TRI S&P 500 INR
The S&P 500 INR Index outperforms the NIFTY50 TRI and NIFTY 100 TRI Indexes over multiple time horizons
Source: Bloomberg, MFI Explorer, Internal Analysis. Data as on Jul 31,2020. Past performance may or may not be sustained in future.
`
Foreign Companies: Accretive to Performance
A Composite Index of 15% of the S&P 500 INR Index and 85% of the NIFTY 100 TRI Index outperforms the Indian indexes in multiple trailing periods
Source: Bloomberg, MFI Explorer, Internal Analysis. Data as on Jul 31,2020. Past performance may or may not be sustained in future.
-7
-2
3
8
13
18
6 Months 1 Year 3 Years 5 Years 7 years 10 Years 15 Years
Composite Index Nifty 100 TRI Nifty 50 TRI
11
Trailing Returns (in %)
A Composite Index of 15% of the S&P 500 INR Index TRI and 85% of the NIFTY 100 TRI Index outperforms the Indian indexes in multiple years
Source: Bloomberg, MFI Explorer, Internal Analysis. Data as on Jul 31,2020. Past performance may or may not be sustained in future.
Foreign Companies: Adding to the Performance
12
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CYTD 2020
Calendar year returns (in %)
Composite Index Nifty 100 TRI Nifty 50 TRI
Foreign Companies: Reducing the Volatility
13
A Composite Index of 15% of the S&P 500 INR Index and 85% of the NIFTY 100 TRI Index reduces the volatility vis-à-vis the Indian indexes
Source: Bloomberg, MFI Explorer, Internal Analysis. Data as on Jul 31,2020. Past performance may or may not be sustained in future.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CYTD 2020
Annualized Standard Deviation (in %)
Composite Index Nifty 100 TRI Nifty 50 TRI
Rolling Returns
3 Years 5 Years 10 Years
Composite Index
Nifty100TRI
Nifty 50TRI
S&P 500 INR
Composite Index
Nifty100TRI
Nifty 50TRI
S&P 500 INR
Composite Index
Nifty100TRI
Nifty 50TRI
S&P 500 INR
Max Returns
Min Returns
Med Returns
+ve Returns
55.5
-6.9
12.6
64.5
-6.5
12.7
62.1
-5.2
11.9
32.9
-14.7
11.3
40.3
0.4
13.8
100%
46.9
-0.7
13.4
99.9%
44.8
-1.0
12.7
99.9%
26.7
-7.6
11.7
81.2%
21.3
6.8
13.2
100%
23.1
5.5
12.7
100%
22.3
5.1
12.0
100%
18.7
6.0
9.6
100%
Foreign Companies: Consistently accretive to performance
In the longer term, the Composite Index (15% of the S&P 500 (INR) Index and 85% of the NIFTY 100 TRI Index) displayed consistent performance vis-à-vis the Indian indexes
Source: Bloomberg, MFI Explorer, Internal Analysis. Data as on Jul 31,2020. The data used in above illustration is for the period from 1 Jan 2000 to 31st Jul 2020. The data is based on daily rolling returns for the mentioned periods. No. of observations for 3, 5 and 10 years are 3494, 3012 and 1814 respectively. Past performance may or may not be sustained in future. 14
97.3% 96.6% 97.7% 82.9%
The Composite Index had positive returns for all observations for the 5 years rolling returns.
The InvestmentProcess & Philosophy
15
Equity Investment Process
16
Investment Objective and StrategyRisk Reward FrameworkPortfolio DiversificationRegulatory and Internal risk limits
Performance attribution analysis
Benchmark and peer group analysis
Risk / Reward analysis
Investment Universe (225-250 Stocks)
Portfolio Monitoring and
Evaluation
Portfolio Construction(Compounders + Alpha Generators)
Stock Universe
In-house Research
Third Party Research
Industry Experts
Management Meetings
6 Pillar Investment FrameworkIdeaGeneration
DueDiligence
StockSelection
Applicable only to the selection of Domestic Companies
The 6 Pillars of our Investment Process
17
Business Dynamics
Operating Matrix
Size,Scalability &
Longevity
Operational efficiencies
Quality &Sustainability
of profits
Management quality &Business
model
Efficiency &Distribution
of capital
Price the Value and not Value the Price
Profitability Quality of Growth
ValuationCapital
Allocation
Applicable only to the selection of Domestic Companies
Portfolio Construction
18
Portfolio Construction Sell Discipline
• Strict adherence to investment process
• Interact with every company before investing
• Sector Agnostic
• No active cash calls
• 3-4 interactions annually with portfolio companies
• Regular monitoring of assumptions and estimates
• Continuous evaluation of Business Performance and Quality of Earnings
• Deterioration in long term business fundamentals
• Corporate Governance is compromised
Portfolio Review
The Economic Environment & Policy Support
19
Almost 70% of countries have scaled up their fiscal support
since April 2020
Fiscal measures announced stand at more than USD
11 Tn, globally
US Fed increased its balance sheet
from USD 4.2 Tn to USD 6.95 Tn since
March 2020
Interest rates are expected to
remain benign
4,159 6,945
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Jan/20 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20
US Fed: Total Assets USD Billion
Total AssetsUSD Billion
20Source: IMF World Economic Outlook June 2020, US Federal Reserve
Policy Support by Central Banks: Across the World
`
`
Government debt and deficits are set to rise globally, more sothan during 2008 - 10 following the global financial crisis.
-15
-10
-5
0
5
10
15
20
25
2008 09 10 2008 09 10212019 212019
10.5
18.7
-4.9
-10.0
Global financial crisis Global financial crisisCOVID 19 pandemic COVID 19 pandemic
Government debt Overall fiscal balance
Various support measures towards MSMEs, weakersections of the society, Moratorium, MNREGAschemes .
Reduction in the Corporate Tax Rate from 30% to 22%
Recapitalization and Consolidation of the Banking Sector
Agricultural Sector Reforms: Dismantling of the APMCstructure
1Credit Suisse, Bloomberg Quinthttps://www.bloombergquint.com/technology/production-linked-incentive-scheme-could-add-55-billion-to-gdp-in-5-years-says-credit-suisse 21
Production Linked Incentives (PLI) to Manufacturing inIndia: Could Add $55 Billion To GDP In 5 Years (about 0.5%in additional GDP growth)1
Additional GDP Impact From PLI Scheme:
0
5
10
15
20
25
2021 2022 2023 2024 2025
Cumulatively, benefits from the PLI scheme could add~$55 billion to GDP ($ billion)
2
4
9
14
21
Government Reforms and Support
https://www.bloombergquint.com/technology/production-linked-incentive-scheme-could-add-55-billion-to-gdp-in-5-years-says-credit-suisse
43.3
0
20
40
60
80
100
120
140
Jul-
10
Jul-
11
Jul-
12
Jul-
13
Jul-
14
Jul-
15
Jul-
16
Jul-
17
Jul-
18
Jul-
19
Jul-
20
Brent Crude
The Debt to GDP ratio will increase but India would remain in comfortable position vis-à-vis other major economies
The impact of the economic relief packages tomitigate the impact of COVID19 is expected to put astrain on government finances in FY20 -21.
Current demand supply equation is in balance andhence prices may not rise meaningfully
Aggressive push towards electric vehicles likely tokeep a lid on oil prices from a long term perspective
22Source: Bloomberg, WorldBank
Key Macros are Stable
`
`
Debt to GDP Ratio
97
5086 97
55
116
75 75
32.2
157
250
57 63
17.224
12081.8
40
115
4840.5
100120
Arg
en
tin
a
Au
stra
lia
Bra
zil
Ca
na
da
Ch
ina
Fra
nce
Ge
rma
ny
Ind
ia
Ind
on
esi
a
Ita
ly
Jap
an
Me
xic
o
Ne
the
rla
nd
s
Ru
ssia
Sa
ud
i Ara
bia
Sin
ga
po
re
So
uth
Afr
ica
So
uth
Ko
rea
Sp
ain
Sw
itze
rla
nd
Tu
rke
y
Un
ite
d S
tate
s
23
6.0
0
2
4
6
8
10
Jan
-14
Jun
-20
CPI (in %)
5.0
6.0
7.0
8.0
9.0
Jan
-14
Jul-
20
10 YR GSEC (in %)
Stable commodity prices and good monsoon tokeep inflation under check
10 year G Sec yields have come down in Indiaand across the world
This would provide support to investments inthe economy
Source: Bloomberg, www.rbi.gov.in
Key Macros are Stable
`
-20.8%
-28.1%
-0.6%
-4.9% -5.1%
3.5%
-16.9% -18.5%
-1.9%
-19.0%
-3.1%
-17.4%
0.4%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Arg
en
tin
a
Bra
zil
Ch
ina
Ind
ia
Ind
on
esi
a
Jap
an
Me
xic
o
Ru
ssia
Sin
ga
po
re
So
uth
Afr
ica
So
uth
Ko
rea
Tu
rke
y
UK
Currency Rate vs USD (in %)
The Indian Rupee has remained comparativelystable in recent months versus other EmergingMarkets
is at 535 billion as on August 14, 2020. this is expected to provide stability to the Indian Rupee
24Source: RBI
Key Macros are Stable
0
100000
200000
300000
400000
500000
`
`
Forex Reserves (USD Mn)
Large Cap Companies..An evergreen investment opportunity
25
26
Large Cap Funds: Lower risk equity funds thanother equity funds
Large CapFunds
Large & Mid Cap Funds
MulticapFunds
Mid CapFunds
FocusedFunds
Small CapFunds
SectoralFunds
Risk Positioning
Perceived to be at less risk amongst the equity funds.Low Risk
High Risk
27
What are Large Cap Companies?
Top 100 companies by market capitalization
GDP Drivers and bellwethers of economic growth
Businesses with established long term track records
`
`
Companies with established systemsand processes
Economies of scale owing to larger size of business
Diversified in terms of nature of businesses and geographies
Usually segment leaders with major market share
28
16% 9% 7%
15%8% 6%
69%83% 87%
0%
20%
40%
60%
80%
100%
Top 100 101-250 Beyond 250
Share holding pattern
FII DII Others
*as per AMFI Market cap data dated 30th Jun 2020. Source for charts: Capitaline; Data as on 31st Jul 2020.Past performance may or may not be sustained in future
Top 100 companies account for 77%* of the total market cap of the listed companies
Comparatively lower volatility and stable returnsover the long term
Liquidity risk is relatively lower especially in volatile markets
Relatively broader research coverage by analysts
High institutional (FIIs and DIIs) ownership: Own more than a third of market cap in large cap companies
Have created wealth for investors in the long term
Why invest in large cap companies?
Top 100
101 to 250
251 and beyond
77
16
7
`
`
`
`
Market cap share
29
Did you know?
Source: Capitaline/Internal Analysis. Data as on 31st Jul 2020. Past performance may or may not be sustained in future. The above simulation is for illustration purpose only and should not be construed as an investment advise. Investors should consult their financial advisors before investing
Top 100 companies contribute to over 69% of the total Net Sales of the top 500 companies by
market cap.
Over 77% of the Profit After Tax of top 500 companies by market cap is contributed by Top
100 companies
Large Cap Companies: Higher Contribution toSales and Income
Top 100 Rest 400
31
69
23
77
Net Sales (%) PAT Share (%)
30Source: Capitaline/Internal Analysis. Data as on 31st Jul 2020. Past performance may or may not be sustained in future. The above simulation is for illustration purpose only and should not be construed as an investment advise. Investors should consult their financial advisors before investing
Large Cap Companies: Higher returns with less volatility
The Large Cap Index has a lower volatility compared to other indexes
The NIFTY100 Index outperforms the Mid Cap and Small Cap Indexes over multiple time horizons
`
Annualized Volatility (in %)
3 Years 5 Years 10 Years
Nifty 100 TRI Nifty Midcap 100 TRI Nifty Smallcap 100 TRI
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%
0%
5%
10%
-5%
-10%
-15%
3 Years 5 Years 10 Years
Nifty 100 TRI Nifty Midcap 100 TRI Nifty Smallcap 100 TRI
Long Term CAGR (in %)
Large Cap Companies: More resilient in declining markets
Source: Morningstar Direct. Data as on 31st Jul 2020. Past performance may or may not be sustained in future. The above simulation is for illustration purpose only and should not be construed as an investment advise. Investors should consult their financial advisors before investing
Historically it has been observed that large caps have better resilience during market downturns as compared to mid and small caps.
Last 3 max drawdowns when Nifty 100 TRI corrected by more than 25%
Risk data for last 15 years
Nifty 100 TRI
Nifty Midcap 100 TRI
Nifty Small Cap 100 TRI
Max Drawdown
(%)
Max Drawdown
(no. of Days)
Average Drawdown
Worst Month
Worst Quarter
Gain/Loss Ratio
-61.08
-69.03
-77.14
294
427
427
-20.43
-24.46
-29.32
-26.72
-30.11
-37.36
-28.59
-32.09
-39.31
1.14
1.12
1.09
Global Financial Crisis (7th Jan 2008 to 27th Oct 2008)
European Sovereign Debt Crisis (7th Nov 2010 to 20th Dec 2011)
COVID19 Outbreak (19th Jan 2020 to 23rd Mar 2020)
Returns in %
Nifty 100 TRI Nifty Midcap 100 TRI Nifty Small Cap 100 TRI
-61.1
-28.9
-37.9
-65.7
-37.4
-39.9
-73.3
-41.1
-46.6
31
Periods of Correction
Large Cap Companies: Stock selection is the Key
Illustration:Assuming you invested Rs. 10 lacs in Top 100 Companies by market capitalization as on 30th Jul 2010 by deploying Rs. 10,000 equally into each of the 100 companies.
Source: Capitaline/Internal Analysis. Data as on 31st Jul 2020. Past performance may or may not be sustained in future. The above simulation is for illustration purpose only and should not be construed as an investment advise. Investors should consult their financial advisors before investing 32
1 company has ceased to exist in the last 10years.
As on 31st Jul 2020, your corpus has grown bymere 5.3% CAGR to Rs. 16.8 lacs.
Investment in the NIFTY100 Index would havegrown to by 9% to 23.86 lacs.
However, within these 100 companies there isa wide dispersion of performance.
Hence, stock picking based on robustinvestment process is the key even whileinvesting in large caps.
Segmented by Performance
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
0 25 50 75 100
Re
turn
s
Stock segmentation
Individual stock CAGR
SegmentInvested Amount
(Rs. In Lacs)Current Value(Rs. In Lacs)
10 Year CAGR
Top 25
26 to 50
51 to 75
76 to 100
All 100 stocks- equal weight
All 100 stocks- NIFTY100
2.5
2.5
2.5
2.5
10
10
10.68
4.22
1.56
0.31
16.78
23.86
15.6%
5.4%
-4.6%
-18.8%
5.3%
9%
Why Large Caps Now?
33
GDP Growth: Long Term is intact
34
5.5 5.6
3
-0.1
5.44.3
3.5 3.5 3.6 3.5 3.4 3.9 3.6 2.9
-4.9
5.4
-6
-4
-2
0
2
4
6
8
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
P
20
21
P
World GDP Growth
9.3 9.8
3.9
8.510.3
6.65.5 6.4
7.4 8 8.3 7 6.14.2
-4.5
6
-10
-5
0
5
10
15
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
202
0P
202
1P
India GDP Growth
Source: IMF World Economic Outlook Update Jun 2020; 2020 and 2021 data is projected GDP growth
Market cap to GDP: Markets need to play catch-up
35
42
52
82 83
103
55
95
88
71
64 65
81
69
7983
79
56
75
0
20
40
60
80
100
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E
Market cap to GDP ratio (%)
Average: 73
Market cap-to-GDP ratio has seen a steep decline from 79% as on FY19 to 54% (FY20E GDP)
This much below its long-term average of 75%
Also it is close to the levels last seen during Global Financial Crisis.
Lowest since the GFC
Growth potential
Source: Motilal Oswal India Strategy Report, Aug 3, 2020
%
Special Product Features
36
37
Facilities in
Principal Large Cap Fund
Aims to protect against
sharp fall in marketShifts appreciated
amount to another fund
In a nutshell, it helps you reduce the risk of timing the market
Introducing SMART and MY GAIN Facilities
38
Introduction to SMART Facility
How SMART Facility works?
This facility is available
exclusively during
NFO period
SMART Facility lets you
stagger your investments
25% is invested in the Principal Large Cap Fund and 75% into Principal Cash Management Fund
If the market falls below 3% from the date of allotment, the SMART Facility gets activated and 25% of the invested amount is deployed in Principal Large Cap Fund
Incase if the market does not fall, the switch takes place at month end from Principal Cash Management Fund to Principal Large Cap Fund
If the SMART Facility deployment takes place during the month based on market fall, the month end switch gets deactivated for that month
01
02
03
04
How SMART Facility works?
39
How SMART Facility works
SmartTrigger
2nd
Initial Investment
*Includes any rise or fall in the value of investment
Facility divides and deploys your investment in 4 parts:
On Allotment 19th Oct 2020
Units of Principal Large Cap allotted and balance 75% is invested in the Principal Cash Management Fund
Subsequent Month Nov 2020
3% fall in Nifty 100 Index from the date of initial allotment or last business day of the Month (if SMART Facility did not activate during the month)
Subsequent Month Dec 2020
Further 3% (total 6%) fall in Nifty 100 Index from the date of initial allotment or last business day of the Month (if SMART Facility did not activate during the month)
Subsequent Month Jan 2021
Further 3% (total 9%) fall in Nifty 100 Index from the date of initial allotment or last business day of the Month (if SMART Facility did not activate during the month)
SmartTrigger
1st
SmartTrigger
3rd
25%
25%
25%
25%
40
Illustration (assuming 15% appreciation trigger is specified by investor)
Principal Large Cap Fund
Principal Fund of your choice
Amount Invested ` 50,000.00
Allotment NAV ` 10.00
Units Allotted 5,000.00
Trigger 1 15%
Appreciated NAV ` 11.50
Units redeemed 652.17
Amount Switched to Target Scheme ` 7,500.00
Balance Units 4,347.83
Balance in Principal Large Cap Fund* ` 50,000.00
Opening Balance in Target Scheme* ` 7,500.00
Trigger 2 15%
Appreciated NAV ` 13.23
Units redeemed 567.11
Amount Switched to Target Scheme ` 7,500.00
Balance Units 3,780.72
Balance in Principal Large Cap Fund* ` 50,000.00
Balance in Target Scheme* ` 15,000.00
*The illustration excludes MTM gain/loss. In the actual scenario, the amount may vary depending on the market movement.
Invest in Principal Large Cap Fund
Investment appreciates to reach the target rate of return
Units redeemed from
Principal Large Cap Fund and amount switched to any Principal Fund of your choice
Your investments
in Principal Large Cap Fund
Your investment in
a Principal Fund of your choice
The flow of investments
You specify the target rate of return to facilitate auto trigger
`
41
Fund Details
Nature of SchemeAn open ended equity scheme predominantly investing in Large Cap stocks.
Investment Objective
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. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Investment PlanDirect & Regular
Investment OptionsGrowth & Dividend
BenchmarkNifty 100 TRI
Min Application Amount
• New Investor Rs. 5,000/- for both Dividend and Growth Option and any amount thereafter under each Plan/Option.
• SMART ` 25,000/-• Systematic Investment Plan: Minimum twelve installments of ` 500/- each.• Systematic Transfer Plan: Minimum Six installments of ` 1,000/- each.• Regular Withdrawal Plan: Minimum Six installments of ` 500/- each.
Load Structure
• If redeemed/ switched on or before 365 days from the date of allotment: upto 24% of the units allotted
(the limit) -
Redemption of units would be done on First in First out Basis (FIFO)• Nil thereafter.
Fund Manager
Fund Manager (for foreign investments)
Mr. Sudhir Kedia has over 13 years of experience in research and assetmanagement business. During the course of his career, he has workedwith Mirae India AMC and ASK Investment Managers. He hasmanaged Hybrid strategies and other Multi cap portfolios is hisearlier organisations.He has a very strong research background and has soundunderstanding of the fund management business.He is an MBA and also holds CA and CFA.
Mr. Anirvan Sarkar has over 9 years of experience in sell side and buyside research. He has covered the banking and financial sector for 6years as well as multiple other sectors prior to that.He has a very strong research background and has sound knowledgeof equities markets.He is BE (Electrical) and also holds PGD from IIM Calcutta.
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DISCLAIMER: The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme InformationDocument of the scheme. The views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in thismaterial is at the sole discretion of the reader. This material should not be relied upon by you in evaluating the merits of investing in any securities or products. Diversification does notguarantee investment returns and does not eliminate the risk of loss. It should be noted that the value of investments and the income from them may fluctuate in accordance with marketconditions and taxation agreements and investors may not get back the full amount invested. Past performance may or may not be sustained in future. The views and strategies described maynot be suitable for all investors. Furthermore, whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will bemet. Investors are advised to consult their Investment advisors for determining their risk appetite and Tax Advisor before taking any investment decision.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Product Label
Principal Large Cap Fund(An Open-ended Equity scheme predominantly investing in Large Cap stocks)
Principal Cash Management Fund (An Open Ended Liquid Scheme)
This product is suitable for investors who are seeking*:
Long term Capital Growth
Investment predominantly in equity and equity-related securities of large cap companies.
This product is suitable for investors who are seeking*:
Income over a short terminvestment horizon
Investment in Debt & MoneyMarket Instruments, withmaturity not exceeding 91 days
*Investors should consult their mutual fund distributors if in doubt about whether the product is suitable for them
Investors understand that their principal will beat moderately high risk