Skip to main content

Mutual Fund Review: Principal Monthly Income Plan

Name: Principal Monthly Income Plan-G
Type: Open-Ended Debt-MIP
Fund Manager: Mr. Sandeep Bagla & Mr. Shyam Bhat
Inception Date: May 23, 2002
 
Principal Monthly Income Plan an open ended monthly income plan from Principal Mutual Fund seeks to generate regular income through investments in debt securities to enable periodical income distribution and also to generate long-term capital appreciation by investing a portion in equity related instruments. It could invest upto 100% in debt and money market instruments with yield between 6% and 9% and upto 15% in equity and equity-related instruments. As on May 2006 it has allocated 81.08% if its assets in debt, 12.59% in equities and rest in cash & equivalent. Its equity component has been fluctuating in the range of 8% to 14% in last one year with average allocation at 10.57%.
 
The scheme had a good start but higher maturity profile, lower equity allocation and frequent churning of the portfolio hauled the returns of the fund in later years. During last one year period it has posted an absolute return of 4.75% while its benchmark and peers were much ahead with returns of 8.07% and 8.17% respectively. The scheme manages the corpus of Rs 63 crore as on May 2006 and has gone down by 56% compared to the previous year.
 
The debt portfolio has been invested in floating rate funds, asset backed securities and non convertible debentures. It has allocated 36.36% of net assets in commercial bonds, 6.3% in T-Bill and rest in securitised debt and equities. Majority of the debt portfolio is invested in good quality rated papers with triple AAA and AA+ rated papers accounting for 25.3% and 11.06% respectively. As on May 2006 it had an average maturity of 949 days which is on the higher side compared to the category average. On the equity side its portfolio is spread across 48 stocks which seem to be large looking at present asset base and 13% equity exposure. Top ten holdings account for more than quarter of its equity portfolio with Britannia industries in top spot. Software sector has received highest exposure at 10.16% followed by Housing & Construction and Diversified sector at 9.21 % and 7.62% respectively. The fund has reasonable mix of largecap, midcap and small cap stocks but nothing proved to be the multibaggers as it had large no of stocks with low exposure and frequently moved in and out of the stocks.
 
Minimum investment required to opt for growth plan is Rs 5000 and Rs 10000 for dividend plan. It charges an Exit load of 0.5% for investments upto Rs 10 lakh and if redeemed within 6 months and 0.25% for investment amount above Rs 10 lakh and less than Rs 5 crore and if redeemed within 30 days from the date of allotment.. While no entry load is charged for the scheme. It is benchmarked against Crisil MIP Blended Index. Expense Ratio of the scheme as on May 31, 2006 is 2% and is a bit higher than the category average of 1.96%.
 

Popular posts from this blog

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...
Read more

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...
Read more

Buying a Used Car

Invest in Mutual Funds Online Download Mutual Fund Application Forms   Pre-owned car can make sense in these inflationary times. But buying one can be trickier than getting a new vehicle    If you are thinking of buying a car but are worried about the rising inflation and higher EMIs eating into your budget, you should consider buying a used car. For those learning to drive, the general advice is that they should hone their driving skills in a used car. However, buying a used car is not an easy task. Though a used car costs less, there are a lot of aspects to be considered while buying one. You should do your due diligence before buying such a car. For example, two cars of the same model would carry two different prices. The difference in price could be on account of the age of the car, how many people have driven, etc. First Fix Your Budget Since used cars are available in a wide variety of models and prices, the starting point would be to determine your budget befor...
Read more

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...
Read more

UTI Fixed Term Income Fund Series XVI - I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Fixed Term Income Fund Series XVI - I (366 days). New Fund Offer opens on : Friday, August 16, 2013 New Fund Offer closes on : Monday, August 19, 2013 Allotment Date : Tuesday, August 20, 2013 Scheme Tenure : 366 days Maturity Date : Thursday, August 21, 2014 Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Inve...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now