Mutual Fund SIP Invest142 views
- A new midcap fund launched with SMART investment facility to mitigate market-timing risk.
- MyGain feature widens the scope for more returns by giving investors an option of investing in orther Principal Funds.
The Indian Mutual Fund Industry is expected to grow by four times (to INR 100 crore) with the investor base expected to grow by 5 times (from existing 20million to 100 million) according to a leading journal i.e. Economic Times. To capitalize on such a great opportunity, fund houses are launching creative mutual fund schemes to bring the investor maximum returns. One of the top AMCs in the game, Principal Mutual Fund, launched a highly innovative equity scheme for investors – Principal Midcap Fund. Let’s check out what’s new in this offer.
Attractive Features of Principal Midcap Fund
Principal Midcap Fund’s competitive advantage is that it gives the investors offers like SMART and My Gain. SMART is a unique feature offered to investors in the New Fund Offer (NFO) stage. In this facility, the lumpsum amount is invested smartly rather than investing all at once. 25% of the lumpsum amount is invested in Principal MidCap Fund and the rest 75% in Principal Cash Management Fund. This move mitigates the market-timing risk. When the benchmark index falls by 3%, this facility gets activated.
It also provides investors the MyGain facility. Here, investors can target a rate of return from the fund, once the fund hits that target, the appreciated amount shifts to another fund in order to generate more and speedy returns. This is surely one of the best and innovative mid cap funds that the Indian mutual fund industry has witnessed. Apart from this, mid cap funds have higher potential than large cap, if the well-researched stocks are included in the portfolio. Principal MidCap Fund focuses on stocks with great corporate governance, higher cash flows, exclusive business models and more. The fund is also in top-hands, managed by some efficient fund managers of the Principal Mutual Fund.
So, what are you waiting for? Invest before the New Fund Offer (NFO) closes which is 20th December, 2019.