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Product Label

This product is suitable for investors who are seeking** ;
• Income generation and capital appreciation over the medium to long term
• Investment in equity and equity related instruments, debt 
and money market instruments and arbitrage opportunities.
**Investors should consult their financial advisors if in doubt whether the product label is suitable for them.

 

Investment Objective

The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments.
However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated and the scheme does not assure or guarantee any returns

Overview

Fund Manager : PVK Mohan
Allotment Date : May 23, 2002
Benchmark : 30% Nifty 50 Index + 70% CRISIL Liquid Fund Index
 

Asset Allocation

Under normal circumstances, the asset allocation would be as follows:

Type of Instruments

 

Minimum (%)

Maximum (%)

Risk Profile

Equity and equity related 

65

90

Medium to High

Of which Net Long Equity Exposure (including units of Equity Mutual Fund Schemes)*

20

30

High

Of which Equity Exposure Equity (only arbitrage opportunity)**

40

70

Low to Medium

Debt securities and money marked instruments # (incl. margin for Derivatives)

10

35

Low


* In the scheme, unhedged equity exposure shall be limited to 30% of the portfolio value. Unhedged equity exposure means
exposure to equity shares alone without a corresponding equity derivative exposure.
** Equity exposure would be completely hedged with corresponding equity derivatives; the exposure to derivatives shown in the above asset allocation tables is exposure taken against the underlying equity investments and should not be considered for calculating the total asset allocation and/or investment restrictions on the issuer. The margin money requirement for the purposes of derivative exposure may be held in the form of Term Deposits.
When adequate arbitrage opportunities are not available in the Derivative and Equity markets, the anticipated alternate asset allocation on defensive considerations would be in accordance with the allocation given below.
However, in case no arbitrage opportunity is available, then 100% of the remaining investible corpus (excluding margin for derivatives and to the extent not deployed in arbitrage opportunities in the asset allocation pattern mentioned above) will be deployed in short term debt and money market instruments with tenure not exceeding 91 days (including investments in securitized debt).

 

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Type of Instruments 

Minimum (%)

Maximum (%)

Risk Profile


Equity and equity related

 

20

75

Medium to High

Of which Net Long Equity Exposure (including units of Equity Mutual Fund Schemes)*

20

30

High

Of which Hedged Equity Exposure (only arbitrage opportunity)**

0

55

Low to Medium

Debt securities and money marked instruments# (incl margin for Derivatives) and Fixed Income Derivatives.

25

80

Low


* In the scheme, unhedged equity exposure shall be limited to 30% of the portfolio value. Unhedged equity exposure means exposure to equity shares alone without a corresponding equity derivative exposure
** Equity exposure would be completely hedged with corresponding equity derivatives; the exposure to derivatives shown in the above asset allocation tables is exposure taken against the underlying equity investments and should not be considered for calculating the total asset allocation and / or investment restrictions on the issuer. The margin money requirement for the purposes of derivative exposure may be held in the form of Term Deposits.
# The Scheme may invest in Treasury Bills, Repos, Reverse Repos, Collateralized Borrowing and Lending Obligations (“CBLO”), cash and cash equivalents and units of Debt/Liquid/ Money Market Mutual Fund Schemes. Investment in Securitized Debt may be up to 30% of the net assets of the Scheme. 
Subject to the SEBI Regulations, the Mutual Fund may deploy upto 50% of its total net assets of the Scheme in Stock Lending.
Further, Unit holders are requested to note that post said changes, the Scheme will be treated as equity oriented scheme as per the extant Income-tax laws. However, at the time of changes in the investment pattern during defensive considerations as stated above, the fund manager may choose to have a lower equity exposure. Accordingly, the Scheme may not be able to meet the criteria for equity oriented scheme as specified under the extant Income-tax laws. Consequently, the Unit holders may not be able to avail tax advantage available to an equity oriented fund in that particular financial year. During the may not be able to avail tax advantage available to an equity oriented fund in that particular financial year. During the defensive circumstances the Tax benefit available for equity oriented scheme will not be applicable and shall be communicated to unit holders vide letters, addendum published in the newspapers as per regulations.

 

Plans & Options

Regular Plan & Direct Plan. Both the Plans offer Growth & Dividend Option. Dividend Option offers the frequency of Half-Yearly and Quarterly Payouts.
The Dividend Option under both the Plans will have the facility of Payout, Reinvestment and Sweep.

Load Structure

Exit Load : If redeemed /switched on or before 365 days from the date of allotment - 1%.
After 365 days - NIL.
 

Minimum Investment

New Investor : Rs.5,000 and any amount thereafter under each Plan/Option

Existing Investor : Rs. 1,000 and any amount thereafter under each Plan/Option.

Repurchase : Rs. 500/- or 50 units

Cut Off Time

3.00 p.m.

In respect of purchase/switch-in in any of the above mentioned Schemes for an amount equal to or more than Rs.2 Lakhs, the closing NAV (Net Asset Value) of the day shall be applicable subject to realisation of the funds upto 3.00 p.m. and receipt of application (duly time stamped).
Further, in case of multiple applications for purchases/switch-ins in any of the Scheme (irrespective of its Plan/ Option) for an aggregate investment amount equal to or more than Rs.2 Lakh on the same business day, such application shall be consolidated at PAN level irrespective of the number of the total application amount of Rs 2 Lakh and above to determine the NAV applicability

 

Current Expense Ratio

Regular Plan
 2.45% p.a. of the daily net assets

Direct Plan
 1.65% p.a. of the daily net assets

Service Tax on Management Fees and proportionate charge in respect of sales beyond T-15 cities subject to maximum of 30 bps on daily net assets are charged in addition to the above stated Expense Ratios.

 

Other Features

SIP/SWP/STP : Available

Min No. & Amount

SIP : 6 installments of Rs.2000/- each

SWP : 6 installment of Rs. 500/- each

STP : 6 installment of Rs. 1000/- each


 

Current Taxation

Based on the InvestmentAllocation of Principal Equity Saving fund (an open-ended EquityScheme), the Scheme is being treated as a “DebtOriented Fund” as per the Income Tax Act, 1961; for the month of Mar2017. All redemption preferred under this Scheme during Mar 2017; shall be processed accordingly.

 

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