An open ended Fund of Funds scheme
Principal Mutual Fund has filed an offer document with Securities and
Exchange Board of India (SEBI) to launch Principal Precious Metal Fund,
an open ended Fund of Funds scheme. The new fund offer (NFO) price for
the scheme is Rs.10 per unit.
The primary objective of the scheme is to seek to generate capital
appreciation by predominantly investing in units of domestic and/or
overseas Gold Exchange Traded Funds and some portion of the corpus in
units of domestic and/or overseas Silver Exchange Traded Funds.
The scheme shall have growth and dividend option. Dividend Option has the facility of payout and reinvestment.
The scheme will invest 65-100% of its net assets in units of
domestic/overseas Gold ETF (s), 0-35% in units of domestic/overseas
Silver ETF (s) and 0-10% in debt or money market securities and/or
units of money market/liquid schemes of Principal Mutual Fund.
The minimum application amount:
Initial Investment - Rs. 5,000 and any amount thereafter under each Option.
Subsequent investment - Rs.500 and any amount thereafter under each option.
Systematic Investment Plan - Minimum Six installments of Rs.500/- each.
The fund seeks to collect a minimum subscription amount of Rs. Rs. 10 lacs.
Exit Load: If redeemed on or before 1 year from the date of
allotment - 1%. Load on switches will be same as exit load applicable
for the respective scheme.
The scheme's performance will be benchmarked against the price of gold.
The fund manager for the scheme: Rajat Jain.