Principal Large Cap Mutual Fund has outperformed
its category four times in past five years.FUND FACTSINCEPTION:
Equity Large and Mid CapTYPE:
Rs 411.55 croreBENCHMARK INDEX:
WHAT IT COSTS
How the fund has performed
Rs 25.01 (G) | Rs 11.13 (Div)MIN INVESTMENT:
Rs 5,000MIN SIP AMOUNT:
Rs 500EXPENSE RATIO:
2.28 per centEXIT LOAD:
1 per cent if redeemed within one year
WHO SHOULD INVEST IN IT?
Where the fund invests
This large- and mid-cap fund is not for the faint-hearted considering the way the fund moves. It goes all the way up when the market rises and goes into a free fall when the markets tank. The fund delivered an annualised 11.92 per cent over the five-year period that ended on 30 August 2011 compared with the category average of 8.79 per cent.
However, it happens to be amongst the worst in the category with -17.57 per cent return so far this year and was the same in 2008. The fund has a diversified portfolio of 50 stocks, which is a significant rise from the 26 it had in June 2007. Keep a look out for this fund and it could be a safe bet once the market starts faring better.MEET THE FUND MANAGER
CIO Rajat Jain says, "We have been hurt by our positions in capital goods and pharmaceuticals but have gained from our exposure to telecom and consumer goods." His bets to reduce cash holdings paved the way for the fund's spectacular returns in 2009.Data and analysis of the fund have been sourced from Value Research.