Principal Mutual Fund
Principal Mutual Fund
It's crucial to note that Principal Mutual Fund India no longer exists as an independent Asset Management Company (AMC). Sundaram Asset Management Company Limited (Sundaram AMC) completed the acquisition of Principal Mutual Fund's schemes in India on December 31, 2021. Following this, SEBI formally announced that Principal Mutual Fund ceased to exist as a mutual fund with effect from June 2, 2022.
Therefore, any discussion about "Principal Mutual Fund" in India should now be understood in the context of its schemes being integrated into Sundaram Mutual Fund.
Let's address the questions based on this acquisition:
Introduction, Fund Manager, and Scope of Principal Mutual Fund (now integrated into Sundaram Mutual Fund)
Introduction (Historical Context): Principal Mutual Fund was an asset management company in India, part of Principal Financial Group, a global financial services company. It had a presence in India for many years and offered a range of mutual fund schemes across equity, debt, and hybrid categories. Principal Mutual Fund was known for its investment management expertise and aimed to cater to diverse investor needs. However, as of late 2021 and early 2022, its Indian operations were acquired by Sundaram Asset Management Company.
Fund Manager: The fund managers who previously managed schemes at Principal Mutual Fund are now part of the Sundaram Mutual Fund investment team, or they may have moved to other AMCs. The schemes they managed have either been merged with existing Sundaram schemes or renamed and now fall under the management of Sundaram Mutual Fund's fund managers.
For example, a prominent fund manager at Principal Mutual Fund was Ravi Gopalakrishnan, who managed schemes like Principal Emerging Bluechip Fund. These funds are now part of Sundaram Mutual Fund and are managed by Sundaram's team. Sundaram Mutual Fund has a strong team of fund managers, including:
- S. Krishnakumar: CIO - Equity
- D. Lakshminarayanan: Head - Fixed Income
- Sandeep Agarwal: Equity Fund Manager
- Rohini Deshpande: Debt Fund Manager
- And others, who now oversee the combined portfolio of schemes.
Scope (Post-Acquisition): The schemes that were formerly part of Principal Mutual Fund now fall under the broader scope and offerings of Sundaram Mutual Fund. This means that investors in the erstwhile Principal schemes benefit from:
- Sundaram's Investment Philosophy and Process: The acquired schemes are now managed according to Sundaram Mutual Fund's established investment philosophy and processes.
- Larger AUM and Resources: Sundaram Mutual Fund is a well-established and larger AMC, providing the acquired schemes with the backing of greater assets under management and operational resources.
- Integrated Product Suite: The erstwhile Principal schemes have become part of Sundaram's comprehensive product suite, which includes a wide range of equity, debt, and hybrid funds catering to various risk profiles and investment goals.
- Enhanced Distribution Network: Investors can now access these funds through Sundaram Mutual Fund's extensive distribution network and customer service channels.
List of Funds (Erstwhile Principal Schemes, now part of Sundaram Mutual Fund) with Brief Explanation
Following the acquisition, many of Principal Mutual Fund's schemes were either merged with existing Sundaram schemes or retained their identity but are now managed by Sundaram. Here's a list of some of the prominent schemes that were part of Principal Mutual Fund and their corresponding status or new name under Sundaram Mutual Fund:
I. Equity-Oriented Schemes:
- Principal Emerging Bluechip Fund
- New Status: Merged with Sundaram Large and Mid Cap Fund.
- Explanation: This was a popular fund from Principal that invested in a mix of large-cap and mid-cap companies. It aimed for long-term capital appreciation by investing in established leaders and high-growth potential mid-sized companies. Now, its assets are part of Sundaram's offering in this category.
- Principal Multi Cap Growth Fund
- New Status: Merged with Sundaram Multicap Fund.
- Explanation: This fund had the flexibility to invest across large, mid, and small-cap companies, aiming to capitalize on opportunities across the market capitalization spectrum.
- Principal Large Cap Fund
- New Status: Merged with Sundaram Large Cap Fund.
- Explanation: Focused on investing in well-established, large-sized companies, typically leaders in their respective industries, aiming for relatively stable long-term growth.
- Principal Small Cap Fund
- New Status: Merged with Sundaram Small Cap Fund.
- Explanation: Invested predominantly in small-cap companies, which have high growth potential but also carry higher risk and volatility.
- Principal Midcap Fund
- New Status: Merged with Sundaram Mid Cap Fund.
- Explanation: Focused on mid-sized companies that are typically beyond the large-cap stage but have significant growth potential.
- Principal Tax Savings Fund (ELSS)
- New Status: Merged with Sundaram Tax Savings Fund (ELSS).
- Explanation: An Equity Linked Savings Scheme (ELSS) offering tax benefits under Section 80C with a 3-year lock-in period, investing primarily in equities for long-term growth.
- Principal Focused Multicap Fund
- New Status: Renamed to Sundaram Focused Fund.
- Explanation: This fund invested in a concentrated portfolio of a maximum of 30 stocks across market capitalizations, aiming for high conviction bets.
- Principal Dividend Yield Fund
- New Status: Renamed to Sundaram Dividend Yield Fund.
- Explanation: Focused on investing in companies that have a track record of consistently paying high dividends, aiming for both income and capital appreciation.
- Principal Global Opportunities Fund
- New Status: Merged with Sundaram Global Brand Fund.
- Explanation: This fund provided exposure to international equities, particularly global companies with strong brand recognition and growth prospects.
- Principal Nifty 100 Equal Weight Fund
- New Status: Merged with Sundaram Nifty 100 Equal Weight Fund.
- Explanation: An index fund that aimed to replicate the Nifty 100 Equal Weight Index, where all constituent stocks have an equal weight, providing diversified exposure to large-cap stocks without market capitalization bias.
II. Hybrid Schemes:
- Principal Hybrid Equity Fund
- New Status: Merged with Sundaram Aggressive Hybrid Fund.
- Explanation: An aggressive hybrid fund that invested a larger portion in equities and a smaller portion in debt, aiming for growth with some stability.
- Principal Balanced Advantage Fund
- New Status: Merged with Sundaram Balanced Advantage Fund.
- Explanation: A dynamic asset allocation fund that flexibly managed its exposure to equity and debt based on market valuations and other factors, aiming to optimize returns and manage risk.
- Principal Equity Savings Fund
- New Status: Merged with Sundaram Equity Savings Fund.
- Explanation: This fund aimed to generate relatively stable returns by combining equity investments (including arbitrage opportunities), debt instruments, and sometimes derivatives.
III. Debt-Oriented Schemes:
- Principal Cash Management Fund
- New Status: Merged with Sundaram Liquid Fund.
- Explanation: A liquid fund investing in very short-term money market instruments, suitable for highly liquid parking of funds.
- Principal Ultra Short Term Fund
- New Status: Merged with Sundaram Ultra Short Duration Fund.
- Explanation: Invested in debt and money market instruments with a short maturity, aiming for higher returns than liquid funds with relatively low risk.
- Principal Short Term Debt Fund
- New Status: Merged with Sundaram Short Duration Fund.
- Explanation: Invested in debt and money market instruments with a short to medium maturity, aiming for stable returns.
- Principal Low Duration Fund
- New Status: Merged with Sundaram Low Duration Fund.
- Explanation: Invested in debt and money market instruments with a low duration, typically less sensitive to interest rate changes.
- Principal Dynamic Bond Fund
- New Status: Merged with Sundaram Dynamic Bond Fund.
- Explanation: A debt fund where the fund manager actively managed the portfolio's duration based on interest rate outlook to optimize returns.
- Principal Corporate Bond Fund
- New Status: Merged with Sundaram Corporate Bond Fund.
- Explanation: Invested primarily in corporate bonds of companies with varying credit ratings, aiming for relatively higher yields.
- Principal Government Securities Fund
- New Status: Merged with Sundaram Gilt Fund.
- Explanation: Invested exclusively in government securities, considered credit-risk-free but subject to interest rate volatility.
IV. Other Schemes:
- Principal Retirement Savings Fund - Progressive/Moderate/Conservative
- New Status: These were Fund of Funds schemes. Their underlying investments are now managed by Sundaram Mutual Fund.
- Explanation: These were retirement-focused schemes with varying asset allocations (progressive for higher equity, conservative for higher debt) to suit different risk appetites of investors planning for retirement.
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