Principal Emerging Bluechip Fund: Outperforming peers consistently

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 7-year return of 18.32%, the fund has outperformed both the benchmark (12.73%) and the category average (17.08%).


Growth of Rs 10,000 vis-a-vis category and benchmark: The fund has a healthy long-term track record.

BASIC FACTS
Date of launch: 11 Dec 2008
Category: Equity
Type: Mid-Cap
Average AUM: Rs 981.66cr
Benchmark: Nifty Free Float Midcap 100 Index

WHAT IT COSTS
NAVs (As on 10 May 2017)
Growth option: Rs 95.93
Dividend option: Rs 54.28
Minimum investment: Rs 5,000
Minimum SIP amount: Rs 2,000
Expense ratio (As on 31 March 2017) (%): 2.52
Exit load: 1% for redemption within 365 days

FUND MANAGER
Dhimant Shah
Tenure: 5 YEARS AND 10 MONTHS
Education: B.Com (H) and Chartered Accountant

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?
The fund’s risk-reward profile is superior to many peers.

Wherever not specified, data as on 30 April 2017. Source: Value Research

Should you buy?
This mid-cap oriented fund has outperformed its benchmark and category average for many years. While it invests predominantly in mid-caps, its exposure to large-caps is currently much higher than many of its category peers. The portfolio is heavily diversified with a modest exposure to its top bets.

The fund manager takes a pure bottom-up stock selection approach and is not constrained by the benchmark in either individual or sector positions. The focus is on businesses with quality management—which can scale up the business and sustain healthy cash flows.

With a superior risk-reward profile compared to many of its peers, and a consistent outperformance over the past few years, the fund is a worthy bet in its category.