Principal High Dividend Yield Mutual Fund
Invest and get dual benefits

Equity market returns plus higher dividend income*


Principal Dividend Yield Fund

(An open ended equity scheme predominantly investing in dividend yielding stocks)

This product is suitable for investors who are seeking*

  • Long term Capital Growth
  • Investment in equity & equity related securities including equity derivatives of high dividend yield Companies.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The Investment Objective of the Scheme would be 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.

Fund Manager:
Mr. Dhimant Shah
Allotment Date:
October 15, 2004
Nifty Dividend Opportunities 50 Index

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

Types of Instruments



Risk Profile

Equity and equity related instruments of high dividend-yield companies* 65 100 High
Debt and Money market Instruments (including Units of Debt / Liquid Mutual Fund Schemes and Cash) 0 35 Low to Medium

** High Dividend Yield Companies are defined as Companies whose dividend yield, at the time of investment, is equal to or higher than the dividend yield of the Company with the lowest dividend yield in the CNX Dividend Opportunities Index, ascertained as at the close of previous trading day.

The scheme intends to use derivatives for purposes that may be permitted by SEBI (Mutual Funds) Regulations, 1996 from time to time. The scheme shall have a maximum net derivatives position up to 50% of the portfolio.

The Scheme may also invest in overseas financial debt instruments including units of overseas mutual funds,as detailed below:-

Investments will only be made in instruments denominated in US Dollar, Singapore Dollar, Japanese Yen, Euro, Sterling Pound or in any other liquid currency as may be decided by the AMC from time to time and will be subject to following limits:

Particulars % of Net Assets
Investment in overseas financial debt instruments including units of overseas mutual funds Not exceeding 35% of the Scheme's assets subject to a maximum limit of US $300 million per mutual fund or such other limit as specified by SEBI from time to time.

Subject to the SEBI Regulations, the Mutual Fund may deploy upto 50% of its total net assets of the Scheme in Stock Lending.

Both the Plans offer Growth & Half Yearly Dividend Option.

Exit Load:

If redeemed on or before 1 Year from the date of allotment - 1%.

New Investor: 5,000
Existing Investor: 1000

3.00 p.m.

In respect of purchase/switch-in of units for an amount equal to or more than 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).

Please check the disclosure page for the current expense ratio.
More Information



Minimum No. & Amt. of                                                                                       


12 installments of 500/- each.


6 installments of 500/- each.


6 installments of 1000/- each.

Disclaimer - "Mutual Fund investments are subject to market risks, read all scheme related documents carefully"