Principal Arbitrage Fund - Regular Plan - Growth
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- Fund Summary
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|Risk||Moderately Low risk|
|Fund Type||Arbitrage Fund|
|Exit Load||0.5% for 30 Days|
More about this fund
|Future on Tata Motors Ltd||9.14%|
|Tata Motors Ltd||9.14%|
|Bharti Airtel Ltd||8.46%|
|Future on Bharti Airtel Ltd||8.45%|
|State Bank of India||6.12%|
|Future on State Bank of India||6.09%|
|Aurobindo Pharma Ltd||4.91%|
|Future on Aurobindo Pharma Ltd||4.89%|
|Dr Reddy's Laboratories Ltd||4.83%|
|Dr. Reddy's Laboratories Ltd. 30-Jul-20||4.79%|
About Principal Arbitrage Fund
Being an open-ended mutual fund, the scheme seeks to generate the capital appreciation by investing in arbitrage opportunities in the cash and within the derivative segments of the arbitrage opportunities and the derivative equity markets. The balance of the fund is invested in debt and money market instruments.
Pros and Cons of Principal Arbitrage Fund
This scheme is suitable for those who are seeking: 1. Short term capital gain or appreciation. 2. Income through arbitrage opportunities between derivative market and cash and within the derivative segment of the arbitrage opportunities. 3. It offers liquidity and is tax efficient. 4. The scheme offers growth and dividend option.
Fund Information and Statistics of Principal Arbitrage Fund
Inception/ Launch Date
The Principal Arbitrage Fund was launched on 21 April 2016 by Principal Mutual Fund.
The scheme has a moderately low level of risk. Exposure to credit risk as the fund enters into various types of derivative contracts. Hence the performance depends on the financial condition of the counterparty. As the fund’s investment techniques are different from the equity investments, the higher is the portfolio turnover risk.
The fund shall dispatch redemption proceeds within 10 business days from the date of acceptance of the redemption request.
Mr. Rajat Jain is the fund manager of Principal Arbitrage Fund since 2016.
Entry/ Exit Load
The entry load is NIL for investing in this scheme or fund. The exit load of 0.50% is applicable if the units are redeemed on or before 30 days from the date of allotment. If redeemed after 30 days or 1 month the exit load is NIL.
Tax benefits of investing in Principal Arbitrage Fund
The following taxes are applicable to income arising from investing in this scheme: 1. STCG tax (units are held for a period of less than 12 months) of 15 percent on redemption of units. 2. LTCG (units are held for a period of more than 12 months), in excess of Rs 1 lakh, is taxed at 10 percent without indexation benefits on the redemption of units.
About Principal Mutual Fund
Principal Mutual fund was set by the Principal Asset Management Company, with a approach to accept levels of risk backed by solid research. With a disciplined and long-term investment they aim to create, grow wealth and protect of their investors.
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All investments come with risk. Risk is the volatility or fluctuation in the price (and returns) of the investment. Usually,
- High Risk = High possible returns
- Low Risk = Stable, relatively lower returns