Principal Large-Cap Fund NFO

Bigger Together: First Large-Cap Fund Investing In India & USA

Principal Large-Cap Fund gives you the opportunity to own what you consume. Sitting In your home, you can now invest across the world in a time-zone and via-phone manner at the cost of Rs. 500 only!

Having a diversified portfolio is an emblem of successful investing and doing so via global exposure is as modern as smart tactic. Graph below highlights relatively shallow impact across ponds vis-a-vis Indian markets in times of crisis, and hence the potential global markets have to offer

As India embarks on its $5 Tn dream, it does so by drawing merits from its peers in parallel hemispheres. No Good is limited to only 1 country but is spread across boundaries. As we grow into donning a vaster vest from being an Indian to a global citizen, why not streamline your monies that way too?!

Principal Large-cap provides the know-how and executional capabilities to give your portfolio a global shade by getting exposure to leaders of tomorrow.

International Inclination: The Cherry on Top

1.Investment –> 2 Countries —> Multiple Benefits

Markets have been riddled with vicious volatility all of this year, seeing trillions of investor wealth being wiped out in a matter of months! As a result, investors dumped equity and rushed for safe-haven assets in search of portfolio equilibrium. The table below highlights how a borderless portfolio is best poised to deliver sound risk-adjusted returns. It can help you curb volatility while not having you compromise for returns

2.Bet Big – Win Bigger: Going Global Welcomes Growth Opportunities

Global markets host the biggest companies in the world, which are shaping today’s youth and defining tomorrow’s leaders .

While India aspires to be $5 Tn economy, its peer in US boasts GDP figures 4 times it’s size!

Domestic Large-Caps: Large Begets Larger

In times when volatility has ruled all, capital conservation has gained fervor while capital generation gotten fever. Investing in the engines running our country is the safest route for investors as the too-big-to-fail companies are to cushion downside impacts while amplifying upside potential.

The Risk-Return discipline of Large-Caps is highlighted below:

Excited to own a piece of the best the world has to offer? Principal MF brings your portfolio a flight to Silicon Valley!

Principal Large-Cap Fund

The Principal Large-cap fund will invest in India and USA blue-chip companies in the following manner:

80% to 85% in Indian Equities with minimum 80% in Large Cap Companies
Upto 15% in US Large Cap Companies with a market cap higher than USD 50 Billion segregated between 4-6 sectors
Diversified portfolio of 50 to 60 companies

The Fund is going to come with 2 unique propositions, mentioned below:

Principal SMART Facility

SMART offering is a structured facility inculcating disciplined and savvy investing. Its 4-step process is as follows:

25% is invested in the Principal Large Cap Fund and 75% into Principal Cash Management Fund

In the subsequent month/s, if the market falls below 3% from the date of allotment, the SMART Facility gets activated and 25% of the invested amount is deployed in Principal Large Cap Fund

Incase if the market does not fall, the switch takes place at month end from Principal Cash Management Fund to Principal Large Cap Fund

If the SMART Facility deployment takes place during the month based on market fall, the month end switch gets deactivated for that month

Principal MY GAIN Facility

MY GAIN offering will help align your target returns/goals to desired asset allocation. Its 2-step process is as follows:

Set the target rate of return to facilitate auto trigger facility

Units redeemed from Principal Large Cap Fund and amount switched to any Principal Fund of your choice

As an institution and individual, we often resort to overseas to fulfil multi-purpose necessities. Then why do we invest any differently? Think of cross-seas investing as your 1^st step in broadening your domestic mind and money.

Be it books or speeches, sound asset allocation merits a special mention when talking of investing. International investing is an outcome of this principle, for it maximizes upside potential on a global level, while arresting downside risks on a domestic level.

Investor Takeaway

From hedging to a coolness factor, this fund offers it all. International funds merit accolades for their ability to maximize upside and limit downside. The fund can act as a hedge in these uncertain times and be a frontrunner in bullish times. It is more suitable for those wearing higher risk appetites but can feature in limited fashion in moderate risk-return profiled portfolios.

Those investing in this fund, and category should look at an average indicative horizon of up to 5 years & more

Key Details About The Fund

Tejesh Kumar