Principal Pnb AMC announces new three-year fund

Mumbai, May 23 (UNI) Principal Pnb Asset Management Company, in association with Vijaya Bank, today announced the launch of its new three-year close-ended debt fund, the Principal Pnb Fixed Duration Fund Three Year Plan-Series 1. The new fund offer period will be from May 22 to June 15.

The fund has been positioned as a stable investment alternative to traditional long-term fixed income investments like Government bonds, National Savings Scheme, Post Office Savings Scheme and others, which were once considered to be an ideal choice due to low risk of capital and steady returns.

Rising interest rates along with the effect of inflation has made fixed income products less attractive for the long term investor, business head of the Company Rajan Krishnan said here today. With equity markets witnessing an unprecedented bull run in the last couple of years, investors are increasingly looking at options that can provide both stability of fixed income along with high growth potential of equities, he added.

Mr Krishnan said the fund launched today is ideal for the long term investor as it provides them capital preservation through debt investment along with the added potential for growth through equity initial public offers. The fund offers two investment options -- Growth and Dividend (Payout and Sweep). The minimum investment amount is Rs 5,000. The benchmark of the fund is Crisil MIP Blended Index.

UNI AR MAZ VKG1825