Principal Asset Management launches a largecap fund
The NFO is an open-ended equity scheme and it will open for subscription from September 28 2020 till October 12.
September 28, 2020 / 12:44 PM IST
Principal Asset Management, on September 28, said it has launched a new fund offer (NFO) Principal Large Cap Fund for investing in largecap stocks.
"The Principal Large Cap Fund aims to achieve long-term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity-related securities of large-cap companies including derivatives, with emphasis on risk-management to reduce portfolio volatility," said the company.
The NFO is an open-ended equity scheme and it will open for subscription from September 28, 2020, till October 12.
In a media release, Principal Asset Management said the fund will allocate 80-85 percent of its corpus to the top 100 Indian largecap stocks by market cap and actively invest up to 15 percent in the US stocks with a market cap higher than $50 billion.
The largecap fund will aim to provide growth from Indian and US economies and depreciating currencies.
The fund will be benchmarked against the composite index of the Nifty 100 Total Return Index (Nifty100 TRI).
As per the media release, the fund will draw from Principal’s proprietary global research expertise and experience and its robust investment framework for the selection of US stocks.
"Largecap funds have comparatively delivered better returns with lesser volatility over the long-term. Our research indicates that a composite Index of 15 percent of the S&P 500 (INR) Index and 85 percent of the Nifty100 index outperforms the Indian indexes in multiple trailing periods and has lower volatility," said Rajat Jain, Chief Investment Officer, Principal Asset Management.
"The allocation to US largecap companies would comprise up to 15 stocks around 4 to 6 sectors and include stable and high growth businesses with a global brand franchise," added Jain.