Principal Large Cap Fund: A consistent outperformer

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 10-year return of 11.18%, the fund has outperformed the category (average return: 8.73%) and the benchmark (7.84%) by a good margin.


Growth of Rs 10,000 vis-a-vis category and benchmark

Annualised performance (%)

The fund’s outperformance is visible across time periods.

Yearly performance (%)

The fund has been among the most consistent performers in its category.

BASIC FACTS
DATE OF LAUNCH: 11 Nov 2005
CATEGORY Equity
TYPE Large Cap
AVERAGE AUM Rs 294.95 cr
BENCHMARK S&P BSE 100 Index

WHAT IT COSTS
NAVS* GROWTH OPTION Rs 47.27
DIVIDEND OPTION Rs 27.89
MINIMUM INVESTMENT Rs 5,000
MINIMUM SIP AMOUNT Rs 2,000
EXPENSE RATIO^ (%): 2.8
EXIT LOAD: 1% for redemption within 365 days

*As on 20 Dec 2016
^As on 30 Sep 2016

FUND MANAGER: Rajat Jain
TENURE: 2 MONTHS
Education: B.E, PGDM

SHOULD YOU BUY?
The fund has an impressive track record and has outperformed its benchmark and category average consistently over many years. It is a true-to-label large-cap offering with index heavyweights as its top picks, but the fund is not an index hugger. It mandates 55-60% of its stock picks to be from the benchmark index, but is comfortable investing beyond this universe. The portfolio is reasonably diversified even as it takes healthy active positions to provide a meaningful exposure to its high conviction bets. The fund has delivered higher alpha (outperformance over the index) compared to most peers while keeping its risk profile on the lower side. With a proven track record, this fund is among the more dependable offerings in the large-cap basket.