Principal PNB Long Term Equity Fund 3 Year Plan launched

Mumbai, Aug 6 (UNI) Principal PNB Asset Management Company (in association with Vijaya Bank), one of India's leading asset management companies, today announced the launch of their Principal PNB Long Term Equity Fund - 3 Year Plan - Series II.

It is a three-year close-ended plan with a primary objective of achieving long-term capital appreciation by investing in equity and equity-related instruments.

The New Fund Offer (NFO) opens on August 3, 2007 and closes on August 31, 2007. The NFO has a minimum investment amount of Rs 5,000 for Dividend Option and Growth Option. There is no entry or exit load for this fund.

Commenting on the launch, Mr Rajan Krishnan, Business Head, Principal PNB Asset Management Company Pvt Ltd said, ''Mid and Small Cap stocks have over the long term, the potential to deliver superior performance as compared to large cap stocks. We believe that these stocks have still not reached their growth potential and this fund will help our investors to take advantage of this opportunity.'' Meanwhile Mr R Srinivasan, Fund Manager, Principal PNB Asset Management Company Pvt Ltd said, ''The fund will target long-term capital appreciation and focus on Mid Cap Companies. For us stock selection is essentially a function of positive incremental fundamental change, rising investment expectation and attractive relative valuation.

''The fund will have a diversified portfolio of Mid and Small Cap companies and the investment approach is bottom-up with little sector bias. The investment options offered are Growth&Dividend,'' added Mr Srinivasan.

Emphasising on Principal PNB AMC's disciplined investment approach, Mr Krishnan said ''Mid and Small Cap tend to be far less researched in the market and our in-house research and strong conviction of the fund manager will help our investors benefit tremendously. Additionally, increased capital access through overseas fund raising, foreign investor participation and IPOs have benefited the growth of these companies making them more profitable and very attractive investments.'' UNI