According to a press release, SMART is an exclusive facility that is available during the NFO period. This facility staggers a lumpsum investment to mitigate market-timing risk. Through the SMART facility, investors can stagger their investment in Principal Midcap Fund into four equal instalments, only 25% of the application money is invested upfront in Principal Midcap Fund while the remaining 75% is invested in Principal Cash Management Fund.
If the benchmark index falls 3% from the date of allotment, the SMART facility gets activated and 25% of the initial investment is automatically shifted to Principal Midcap Fund else the switch takes place from Principal Cash Management Fund to Principal Midcap Fund at the month end. In a nutshell, this facility helps reduce the risk of timing the market.
“Mid caps are great multipliers in the long term despite their short-term volatility. Also, they possess greater odds to outperform large caps. Right stock selection in mid caps, therefore, is the key to wealth creation. With focus on companies with higher cash flows, corporate governance, unique business models and reasonable risk, Principal Midcap Fund offers a good investment experience that is backed by expertise,’ says Ravi Gopalakrishnan, Head - Equity, Principal Mutual Fund.
“We believe that this is the opportune time to consider midcap investing and Principal Asset Management with its right investment capabilities is well placed to offer a rewarding midcap investing experience for investors,” says Lalit Vij, Managing Director, Principal Mutual Fund.
Minimum Application Amount:
New Investor: Rs 5,000/- for both Dividend and Growth Option and any amount thereafter under each Plan/Option
SMART (available only during NFO): Rs 25000/-
Systematic Investment Plan: Minimum twelve installments of Rs. 500/- each
Systematic Transfer Plan: Minimum six instalments of Rs. 1,000/- each
Regular Withdrawal Plan: Minimum six instalments of Rs. 500/- each
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