Table of Contents :
- What is PNB Mutual Fund
- How to Complete Your Mutual Fund eKYC
- Documents Required
- How to Invest Online in PNB Mutual Funds
- Frequently Asked Questions
Principal Mutual Fund originally known as Principal PNB Mutual Fund or PNB Mutual Fund initially operated as a joint venture between US-based investment management company Principal Financial and Punjab National Bank (PNB), one of India’s largest public sector banks. In August 2018, Principal bought out PNB’s stake in Principal PNB Mutual Fund and renamed itself as Principal Mutual Fund. As of quarter ended September 2018, Principal Mutual Fund featured an average AUM (AAUM) of Rs. 7.79 lakh crore. Some of the most popular schemes from Principal AMC are Principal Emerging Bluechip Fund, Principal Hybrid Equity Fund and Principal Multicap Growth Fund.
How to Complete Your Mutual Fund eKYC?
KYC (Know Your Customer) is a one-time customer identification process and a mandatory compliance requirement for investors who wish to invest in mutual funds. It has been made compulsory by the capital markets regulator SEBI (Securities and Exchange Board of India) for mutual fund investments in order to curb fraudulent activities.
The KYC Process can be initiated and completed with any of the following SEBI-registered intermediaries:
- The Fund House (Asset Management Companies)
- KYC Registration Agency (KRA) such as CAMS, Karvy, CSDL (Central Depository Services Limited) Ventures, NSDL (National Securities Depository Limited) and NSE-owned (National Stock Exchange) DotEx International Limited
To complete your Mutual Fund eKYC online, follow these steps, and you’ll be good to go:
Step 1: Visit the website of a fund house or any of the above-mentioned KRA’s website and create an investor account by filling in your personal details and your Aadhaar-linked mobile number so that you can verify the account using that OTP.
Step 2: Upload self-attested copies of your Identity Proof and Address Proof.
That’s all. Your eKYC process is done!
How to Invest in Mutual Funds via Paisabazaar.com?
Step 1: Go to Paisabazaar.com
Step 2: Select the ‘Mutual Fund’ option.
Step 3: If you are a registered user, login onto the platform using your mobile number and password/OTP. Or create a new account.
Step 4: Choose ‘Invest’ > ‘Explore All Funds’ on the left side bar.
Step 5: Select the PNB Mutual Fund of your choice. Now, all the details of the fund including NAV, risk level, etc. will appear.
Step 6: Enter the amount you wish to invest, select the investment type – SIP or Lumpsum, and click on the ‘Confirm & add to cart’ option.
Step 7: You can complete the payment using net banking of major Indian banks. The mutual fund units will be allotted to you within 5 working days.
Documents Required for Mutual Fund Investment
Here is a list of official documents required to validate the identity and address of an investor:
1. Identity Proof
- Aadhar Card
- PAN Card
- Passport
- Driving License
2. Address Proof
- Aadhar Card
- Driving License
- Passport
- Recent Utility Bill
- Rental/Lease Agreement
Principal Mutual Fund Equity Funds
Principal Mutual Fund manages a range of equity schemes for individual and institutional investors alike. These equity funds from Principal AMC are required to invest no less than 65% of their total assets in various equity/equity derivatives as per current SEBI guidelines. Apart from this, these Principal equity schemes also have the allowance to invest no more than 35% of their total assets in a range of money market and debt instruments.
Trailing Returns of Principal Mutual Fund Equity Schemes*
Mutual Fund Scheme | 1 Year Trailing Return | 3 Year Trailing Return | 5 Year Trailing Return |
Principal Dividend Yield Fund(G) | -10.7% | 7.89% | 8.02% |
Principal Emerging Bluechip Fund(G) | -10.38% | 6.88% | 11.72% |
Principal Global Opportunities Fund(G) | -8.77% | 9.67% | 4.92% |
Principal Focused Multicap Fund(G) | -2.85% | 6.42% | 7.36% |
Principal Nifty 100 Equal Weight Fund(G) | -12.01% | 2.93% | 3.68% |
Principal Multi Cap Growth Fund(G) | -9.52% | 6.6% | 8.38% |
Principal Personal Tax saver Fund | -10.24% | 2.21% | 4.78% |
Principal Tax Savings Fund | -10.97% | 6.09% | 8.42% |
Source: Value Research, Data as on September 19, 2019
Principal Mutual Fund Hybrid Funds
The hybrid funds from Principal Mutual Fund are designed to invest in multiple asset classes, usually both equity and debt instruments. The proportion of equity/equity derivatives and debt/money market instruments vary from one type of Principal Hybrid Fund to another. Hybrid schemes are favored by investors who seek a balance between risk and returns through exposure to both equity and debt investments. More about hybrid funds
Trailing Returns of All Principal Mutual Fund Hybrid Schemes*
Mutual Fund Scheme | 1 Year Trailing Returns | 3 Year Trailing Returns | 5 Year Trailing Returns |
Principal Arbitrage Fund(G) | 1.37% | 3.45% | _ |
Principal Balanced Advantage Fund(G) | -0.05% | 5.41% | 6.27% |
Principal Equity Savings Fund(G) | 2.22% | 6.29% | 7.1% |
Principal Hybrid Equity Fund(G) | -5.43% | 8.65% | 9.67% |
Principal Retirement Savings Fund-Cons(G) | 0.94% | _ | _ |
Principal Retirement Savings Fund-Mod(G) | -1.55% | 4.87% | _ |
Principal Retirement Savings Fund-Prog(G) | -3.29% | _ | _ |
Source: Value Research, Data as on September 19, 2019
Debt Schemes of Principal Mutual Fund
Debt schemes of Principal Mutual Fund primarily invest in a wide range of debt and money market instruments which can account for up to 100% of a debt scheme’s portfolio. Some key debt/money market investments of Principal Mutual Fund debt schemes are commercial papers, certificates of deposit, government bonds, collateralized borrowing and lending obligations (CBLO) as well as corporate bonds. Some of the top debt schemes of Principal AMC are favored by institutional and retail investors alike. More about debt funds
Trailing Returns of All Principal Mutual Fund Debt Schemes*
Mutual Fund Scheme | 1 Year Trailing Returns | 3 Year Trailing Returns | 5 Year Trailing Return |
Principal Dynamic Bond Fund(G) | 1.34% | 3.72% | 6.99% |
Principal Low Duration Fund(G) | -10.34% | 1.12% | 4.36% |
Principal Short Term Debt Fund(G) | -0.14% | 4.34% | 6.64% |
Principal Ultra Short Term Fund(G) | 4.33% | 5.58% | 6.85% |
Principal Corp Bond Fund(G) | 8.83% | 7.05% | 7.86% |
Principal Cash Management Fund(G) | – | – | – |
Principal Credit Risk Fund(G) | 1.4% | 5.38% | 6.97% |
Source: Value Research, Data as on September 19, 2019
Frequently Asked Questions
Q. What is an Asset Management Company (AMC)?
A. AMC is an organisation which manages the pooled funds from numerous investors and invests them in various financial securities to generate returns.
Q. What is Net Asset Value (NAV)?
A. Net Asset Value measures the performance of an individual mutual fund scheme of an AMC. In essence, it is the market valuation of the securities the fund has invested in. So, the NAV per unit is derived from dividing the total market value of all the invested securities by total number of units issued. Since, the number of unit holders and valuation of securities change everyday, the NAV of a mutual fund also changes accordingly.
Q. What is Expense Ratio?
A. Expense Ratio refers to a small amount of fee charged by Asset Management Companies annually to manage investors’ assets. It covers the operating and managing cost incurred by the AMC. It is a percentage of the total assets invested by the investor.
Q. What is Entry Load?
A. When an investor purchases units of a mutual fund scheme for the first time, s/he is charged a small amount of processing fee by the Asset Management Company which is known as an Entry Load.
Q. What is Exit Load?
A. When investors redeem their investment from a mutual fund scheme, s/he is charged a small amount of processing fee which is known as an Exit Load. It is also charged when investors choose to switch between different mutual fund schemes of a specific AMC.