Principal Mutual Fund introduces mid cap fund

Principal Mutual Fund has launched a new fund called Principal Midcap Fund. The NFO of the Principal Midcap Fund closed on December 20. The scheme offers features like SMART and My Gain, a communication from the fund house said.
According to a press release, “SMART is an exclusive facility that is available during the NFO period. This facility staggers a lumpsum investment to mitigate market-timing risk. Through the SMART facility, investors can stagger their investment in Principal Midcap Fund into four equal instalments, only 25% of the application money is invested upfront in Principal Midcap Fund while the remaining 75% is invested in Principal Cash Management Fund.”
If the benchmark index falls 3% from the date of allotment, the SMART facility gets activated and 25% of the initial investment is automatically shifted to Principal Midcap Fund else the switch takes place from Principal Cash Management Fund to Principal Midcap Fund at the month end. In a nutshell, this facility helps reduce the risk of timing the market.
The press release also said, “My Gain facility allows investors to set a target rate of return to activate auto trigger which automatically shifts the amount of appreciation to another fund of the investor’s choice when the target return is achieved.”