small cap fund...principal small cap fund: (an open ended equity scheme predominantly investing in...
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To generate long term capital appreciation by predominantly investing in equity and equity related instruments of Small Cap companies. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Why invest in Small Cap?
Investment Strategy
Mutual Fund
September, 2019
Principal Small Cap Fundinvesting in small cap stocks)(An open ended equity scheme predominantly
Small Can Grow Mighty with Time!
Over 1500 annual interactions with companies in our universe
The investment strategy stated above may change from time to time without any notice and shall be in accordance with the strategy as mentioned in the Scheme Information Document of the scheme.
Portfolio Construction Portfolio Review Sell Discipline
Number ofSmall Cap Stocks
~4750
LiquidityDaily trade value in
excess of Rs. 1 cr
ManagementQuality
Track Record andGrowth Outlook
Our Small CapStocks Universe
~200
Meet every companybefore investing
No active cash calls
Typically Single stockallocation notexceeding 5%
Typically 3-4 annual interactions with
portfolio companiesIn-house earnings
estimates with regular monitoring and revision
Strict check onportfolio liquidity
Achievement of TargetPrice
Adverse developmentsin Corporate Governance
Adverse policiesor environment
Present in large organized sectors & have potential to scale up.
Present in the sectors where large & mid caps have limited presence.
Businesses in emerging industries.
Usually under-researched and under-owned by institutional investors.
Top100
101-250
251ONWARDS
Large Cap
Mid Cap
Small Cap
Number of stocks 100
Number of stocks 150
Number of stocks ~4600+More sectoral opportunities
Small caps have bounced back with greater intensity after corrections
Source: Bloomberg; Internal AnalysisPast performance may or may not be sustained in future.
Influencing Factors
Economy
Gov. Finances
Consumption
Interest Rates
(ret
urns
)
CY 2009
CY 2008 CY 2011 CY 2013 CY 2018
CY 2012 CY 2014 CY 2019
110%
-71%-33% -7% -28%
39% 57%
Nifty Small Cap 100 TRI
This communication is for distributors only.
Top 5 Industry Allocation (as on ) September 30, 2019 Key Statistics (as on , 2019)September 30
Construction Project
Chemicals Software Cement
16.24% 12.92% 8.05% 6.87% 6.73%
Banks *Total Expense Ratio include GST on management fees.# as on September 30, 2019
AUM
`147.29cr.
Total Expense Ratio*#
Direct Plan 0.71%
Regular Plan2.49%
Fund Manager
Note: Performance of Principal Small Cap Fund is not given as the scheme has not completed 1 year.
Investing Facts
Top 5 Holdings (as on September 30, 2019)
Plans: Regular & Direct Options: Both the Plans offer Growth & Dividend Option. The Dividend Option under both the Plans will have the facility of Payout and Reinvestment.Minimum Investment Amount: New Investor: `5,000 | Existing Investor: `1,000Benchmark: Nifty Small Cap 100 IndexEntry Load: NILExit Load: If redeemed/ switched on or before 1 year from the date of allotment:• Nil for redemption/ switch out of units upto 25% of the units allotted (the limit).• 1% on redemption in excess of 25% of the limit stated above- Redemption of
units would be done on First in First out Basis (FIFO).• Nil thereafter
Total work experience of 25 years. Managing this scheme since July, 2019
Ravi Gopalakrishnan
Total work experience of 15 years. (Associate Fund Manager)Managing this scheme since May, 2019
Siddarth Mohta
Name % of NAV Industry
ICICI Bank Ltd. Banks 3.63
State Bank of India Banks 2.90
Galaxy Surfactants Ltd. Chemicals 2.57
Navin Fluorine International Ltd. Chemicals 2.40
Fine Organic Industries Ltd. Chemicals 2.33
(% of NAV)
~ Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
ŸLong term Capital Growth
ŸPredominantly investment in equity and equity related instruments of Small Cap companies
Principal Small Cap Fund: (An open ended equity scheme predominantly investing in small cap stocks) This product is ~suitable for investors who are seeking -
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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