Principal Smart Debt Equity Mutual Fund
Make the bear and the bull work for you

Equity

Principal Balanced Advantage Fund

(An Open-ended dynamic asset allocation fund)

This product is suitable for investors who are seeking*

  • Long term Capital Growth
  • Investment in equity & equity related securities including equity derivatives as well as Debt/Money Market securities through a systematic allocation of Funds between Equity & Debt on the basis of the Price Earnings Ratio of Nifty 50.

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

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.

Fund Manager:
Mr. P.V.K. Mohan (for Equity portion)
Ms. Bekxy Kuriakose (for Debt portion)
Allotment Date:
December 16, 2010
Benchmark:
50% Nifty 100 Index + 35% CRISIL Short Term Bond Index + 15% Nifty Arbitrage Index

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

Types of Instruments

Minimum%

Maximum%

Risk Profile

Equity & Equity Related Instruments of Large Cap Companies 0 100 Medium to High
Debt or Money Market Securities and/or units of money market/liquid schemes of Principal Mutual Fund. 0 100 Low to Medium

Investment in derivatives shall be upto 50% of the net assets of the Scheme. Deployment upto 50% of its total net assets of the Scheme in Stock Lending, subject to the SEBI regulations.

The Scheme has no intention to invest in Securitised Debt.

Large Cap Stocks are defined as stocks with market cap equal to or above the market cap of the lowest market cap stock of the BSE 100 Index and which may or may not be a constituent of the BSE 100 Index at the time of investment. The universe may also include Initial Public Offerings whose market capitalization would be as per the above-mentioned criteria. This large cap cutoff will be so determined taking into account the full market cap range of the BSE 100 index at the end of every calendar quarter. Such market cap range once determined at quarter-end will apply to all investment decisions made during the following quarter. The market cap criteria will apply only at the time of making investment decision. If a stock so qualifies for investment based on above market cap criteria at the time of investment; the fund may continue to hold the stock irrespective of market cap movement of the stock subsequent to investment in the stock. The lower end of the full market cap of BSE 100 Index as on December 31, 2012 was 3,297.01 crore.

Regular Plan and Direct Plan.

Both the Plan offer Growth & Monthly Dividend Option

The Monthly Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep.


Exit Load:


If redeemed/ switched on or before 1 year from the date of allotment:
  • Nil for redemption/ switch out of units upto 24% of the units allotted (the limit)
  • 1% on redemption in excess of 24% of the limit stated above
  • Redemption of units would be done on First in First out Basis (FIFO)
Nil thereafter

New Investor: 5000/-
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

SIP / RWP / STP:

Available

Minimum No. & Amt.

SIP :

12 installments of 500/- each.

RWP:

6 installments of 500/- each.

STP :

6 installments of 1000/- each.

To check

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