Principal Mutual Fund Arbitrage Fund, an open ended equity scheme

Principal Mutual Fund has launched a new fund named as Principal Arbitrage Fund, an open ended equity scheme. 

The new fund offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 28 March and will close on 11 April 2016.

The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments..

The scheme offers dividend and growth option under both regular and direct plan. Dividend option will have the facility of payout, reinvestment and sweep.

Asset allocation:

The scheme would allocate 65% to 90% of assets in equity and equity related instruments, invest 65% to 90% of assets in equity derivatives with medium to high risk profile and invest 10% to 35% of assets in debt securities and money market instruments (including margin for derivatives) and fixed income derivatives with low risk profile.

The minimum application amount is Rs. 5,000. 

Entry load: Not applicable.

Exit load:

If redeemed on or before 90 days from the date of allotment - 0.25%

If redeemed after 90 days from the date of allotment - Nil
The benchmark index for the scheme shall be CRISIL Liquid Fund Index

The fund manager of the scheme is Rajat Jain.

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