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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
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