Principal MF launches Principal Emerging Bluechip Fund

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Principal Mutual Fund today launched the Principal Emerging Bluechip Fund, an open ended equity scheme, which will predominantly invest in small and mid cap companies. The fund is open for subscription from September 22, 2008 till October 10, 2008, and will be managed by Mr. Pankaj Tibrewal. Pankaj is also the fund manager for Principal Personal Tax Saver Fund, Principal Child Benefit Fund, Principal Monthly Income Plan (MIP), Principal Monthly Income Plan - MIP Plus and Principal Balanced Fund.

 

This fund will be benchmarked against the CNX Midcap Index and its primary objective is to achieve long-term capital appreciation by investing in equity and equity related instruments of mid cap and small cap companies. The fund will predominantly invest in midcap stocks and small cap stocks to tap high growth opportunities offered by such stocks and for the purpose of maintaining liquidity or tap market opportunities the fund's portfolio may also include large cap stocks.

 

The Scheme will offer Growth Option and Dividend Option. Dividend Option will have the facility of Pay-out, Re-investment and Sweep.

 

Commenting on the launch of the New Fund Offer Mr. Sudipto Roy, Business Head, Principal Mutual Fund said, "The India Growth story is here to stay and we believe this is a good time to approach the market with a Mid Cap fund as the valuations are attractive and we know the potential that these stocks have. Also we lacked a Mid Cap offering and keeping the longer term in view we had to fill this gap in our product offering."

 

Mr. Rajat Jain, Chief Investment Officer, Principal Mutual Fund said, "For a long term investor, mid and small cap stocks are a good bet as they offer higher growth opportunity. Mid caps can be volatile; however volatility can be neutralized by a longer investment horizon without significantly impacting the return expectations. Mutual Funds are a good route for investing in mid cap stocks, as professional fund management can add value since these stocks are often under researched by brokerage houses. In the current scenario quality mid caps are available at reasonable valuations even after factoring in the current volatility in the business environment and we intend to capitalize on such opportunities through this fund." 

 

Sourced From: LINOpinion - The Lintas Public Relations Division